Chairman Simplot and Members of the METRO Board of Directors

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Transcription:

9:45 am I April 21, 2010

April 14, 2010 To: From: Chairman Simplot and Members of the METRO Board of Directors Stephen R. Banta, Chief Executive Officer Date: April 21, 2010 Time: 9:45 a.m. Location: METRO 101 N. First Ave., 13 th Floor Board Room Phoenix, AZ 85003 Please park in the garage in the US Bank Building (enter from Adams Street) and bring your parking ticket to the meeting as parking will be validated. Transit passes will be provided to those using transit. For those using bicycles, please lock your bicycle in the bike rack located on the 2 nd level of the parking garage across from the ticket handler booth. METRO Board (Board) members may attend the meeting by teleconference. If you have any questions or need additional information regarding attendance by teleconference, please contact Gina Frackiewicz at (602) 3224455. Item Action Requested 1. Call to Order 2. Call to the Audience Information A 15minute opportunity will be provided to members of the public at the beginning of the meeting to address the METRO Board on all agenda items. The Chairman may recognize members of the public during the meeting at his/her discretion. Up to three minutes will be provided per speaker. 3. Minutes Action Summary minutes from the March 3, 2010 Board meeting are presented for review and approval. 4. Chief Executive Officer s (CEO) Report Information Steve Banta will brief the Board on current light rail issues.

METRO Board of Directors Agenda April 14, 2010 Page 2 of 2 Item Action Requested Regular Agenda 5. 2010 Light Rail/High Capacity Transit Life Cycle Program Update Action Staff is requesting that the Board approve a revised FY 2010 High Capacity/Light Rail Transit (HCT/LRT) Life Cycle Program Update as part of the Regional Transportation Plan (RTP). Please see information attached for Agenda Item 5 for additional information. 6. Future METRO Board Agenda Items Information The Board may request consideration of future agenda items. No additional information is attached. 7. Adjournment Action With 24hours notice, special assistance, including provision of materials in alternate formats, can be provided for persons with sight and/or hearing impairments. Call 6022549896 (voice) or 6023224499 (TTY) to request accommodations.

AGENDA ITEM 3 Minutes

March 3, 2010 101 North First Avenue 13 th Floor Board Room Phoenix, Arizona Board Members Present Councilmember Tom Simplot, City of Phoenix Chair Vice Mayor Shana Ellis, City of Tempe Mike James, City of Mesa Jamsheed Mehta, City of Glendale Mayor Boyd Dunn / Councilmember Rick Heumann, City of Chandler Vice Mayor Ron Aames, City of Peoria Others Present Dave Boggs, Valley Metro/RPTA Dan Cook, City of Chandler Matthew Dudley, City of Glendale Jenna Goad, City of Glendale David Moody, City of Peoria Dennis Osuch, Larson Allen Fred Tallarico, Jacobs 1. Call to Order Chairman Simplot called the meeting to order at 9:47 a.m. 2. Call to the Audience There were no requests to address the Board. Chairman Simplot introduced and welcomed City of Chandler s Councilmember Rick Heumann. Councilmember Heumann stated he looks forward to participating on the Board. 3. Minutes IT WAS MOVED BY VICE MAYOR ELLIS AND SECONDED BY VICE MAYOR AAMES AND UNANIMOUSLY CARRIED TO APPROVE THE JANUARY 20, 2010 MEETING MINUTES. 4. Chief Executive Officer s (CEO) Report Mr. Stephen R. Banta, METRO s Chief Executive Officer, addressed the following items as part of his report.

METRO Board of Directors Meeting Minutes March 3, 2010 Page 2 of 6 Transit Life Cycle Program (TLCP) Update: It is anticipated that a special Board meeting will be scheduled to further discuss the TLCP following discussions with member city staff about policy decisions related to the use of Public Transportation Funds (PTF) for high capacity transit/light extensions. It is anticipated that the staff discussion will include PTF application to extensions as part of the overall TLCP. Proposition 400 (Prop 400) Performance Audit Update: METRO staff met with the Auditor General (AG) to discuss the management and use of the Prop 400 funds and the criteria to measure the effectiveness of its use as required by statute. The Federal Transit Administration (FTA) performs an analysis of New Starts projects two years after grand opening to allow system ridership to stabilize. The FTA process was brought to the attention of the AG. METRO staff also recommended assessment of the economic development adjacent to light rail. A working group from regional agencies has been assembled to assist the AG in the development of the Request for Proposals. U.S. Airways Center Pilot Program Update: The Regional Public Transportation Authority, METRO, and City of Phoenix staff will be meeting to discuss the pros/cons, administration, and options and possibilities of program expansion. Service Change Meetings: The first public meeting for METRO occurred on March 2 with an attendance of about 20 citizens. Questions from the public included how the options were developed, how cost savings would be achieved, and what other cost savings options might exist other than service reductions. Staff provided surveys and discussed budget process information. The next public meeting is scheduled on March 9 in Tempe. Mayor Dunn, City of Chandler, joined the meeting at 9:55 a.m. Ridership: Ridership continues to exceed projections. Mr. James noted that the day that METRO reached 55,000 boardings actually meets the 20year New Starts ridership goal. Vice Mayor Aames noted that City of Phoenix has reported service reduction decisions although METRO has not concluded its public meetings. Mr. Banta stated that the customers were informed that their input is valued and that METRO is still looking for ways to meet budget targets. He noted that options continue to be vetted with the public, and staff will make recommendations to the Board for consideration as part of the budget process. Chairman Simplot stated that input on continuing late night service has been positive and the Phoenix City Council s budget reflects the option to continue this service.

METRO Board of Directors Meeting Minutes March 3, 2010 Page 3 of 6 Chairman Simplot acknowledged that Mayor Dunn had joined the meeting. Mayor Dunn stated that Councilmember Heumann will be the new Chandler representative and will be a great addition to the METRO Board. The Mayor noted that he will continue to participate on occasions. Consent Agenda 5. Approval of the Consent Agenda 5a. Valley Metro Rail, Inc. FY2009 Comprehensive Annual Financial Report and Single Audit Act Report IT WAS MOVED BY MAYOR DUNN AND SECONDED BY VICE MAYOR AAMES AND UNANIMOUSLY CARRIED TO ACCEPT THE COMPREHENSIVE ANNUAL FINANCIAL REPORT AND SINGLE AUDIT ACT REPORT FOR THE PERIOD ENDED JUNE 30, 2009. 5b. Passenger Station Power Washing Services Contract IT WAS MOVED BY MAYOR DUNN AND SECONDED BY VICE MAYOR AAMES AND UNANIMOUSLY CARRIED TO AUTHORIZE THE CEO TO EXECUTE A TWENTYFOUR (24) MONTH PASSENGER STATION POWER WASHING SERVICES CONTRACT WITH THREE OPTIONAL ONE (1) YEAR EXTENSIONS TO SHELTERCLEAN OF ARIZONA, INC. FOR TOTAL BUDGETED AMOUNT NOT TO EXCEED $272,895.00 THAT INCLUDES A FIVE (5) PERCENT CONTINGENCY. Regular Agenda 6. Section 5309 Project Budget Adjustments Mr. John McCormack, Director of Finance and Administration, presented information regarding Section 5309 contract budget adjustments to various project elements. The report focused on the specific cost savings in certain budget areas being transferred to cover other project costs. The major cost savings are in the finance costs $12 million. The overall project budget remains within the overall Full Funding Grant Agreement (FFGA) budget. IT WAS MOVED BY VICE MAYOR AAMES AND SECONDED BY MIKE JAMES AND UNANIMOUSLY CARRIED TO AUTHORIZE THE FOLLOWING CHANGES TO THE SECTION 5309 PROJECT BUDGETS: INCREASE THE LINE SECTION 3 BUDGET BY $1,500,000 TO $106,596,850; INCREASE OTHER FACILITY CONTRACTS BUDGETS BY $28,396 TO $159,420,370;

METRO Board of Directors Meeting Minutes March 3, 2010 Page 4 of 6 INCREASE PRIOR RIGHTS UTILITY RELOCATIONS BUDGET BY $400,000 TO $29,900,000; DECREASE OWNER FURNISHED MATERIALS BUDGETS BY $264,563 TO $33,195,541; DECREASE TRACTION ELECTRIFICATION BUDGET BY $400,000 TO $61,252,003; DECREASE COMMUNICATIONS/SIGNALS BUDGET BY $555,000 TO $43,704,762; INCREASE THE RIGHTOFWAY BUDGET BY $8,143,055 TO $141,893,055; INCREASE THE PE/FEIS BUDGET BY $114,762 TO $25,169,700; INCREASE THE ENGINEERING BUDGET BY $850,000 TO $108,497,240; DECREASE THE CAC BUDGET BY $119,713 TO $57,161,747; INCREASE THE MANAGEMENT/ADMINISTRATION BUDGET BY $3,488,028 TO $64,597,326; DECREASE STARTUP/TESTING BUDGET BY $1,000,000 TO $22,000,000; DECREASE THE FINANCING COSTS BY $12,047,702 TO $98,850,000; DECREASE THE PROJECT RESERVE BY $137,263 TO $1,204,106. 7. Regional Transit Planning Roles and Responsibilities Mr. Banta stated that the Maricopa Association of Governments (MAG), the Regional Public Transportation Authority (RPTA), the City of Phoenix Public Transit Department, and Valley Metro Rail, Inc. (METRO) have been working together since the summer of 2009 to determine how best to provide overall transit planning and programming in the region. To address these issues, the agencies have developed a Memorandum of Understanding (MOU) to establish responsibilities among the participants. The RPTA Board has approved the draft MOU and the MAG Regional Council is waiting for the METRO Board to consider the MOU prior to its consideration of the memorandum. Mayor Dunn asked about the status of the legislation. He added that it is a great step forward for the region. Mr. John Farry, Director of Community and Government Relations, stated that the legislation does not impact METRO; however, it impacts

METRO Board of Directors Meeting Minutes March 3, 2010 Page 5 of 6 RPTA and MAG transit planning and is moving forward by agreement among the agencies. IT WAS MOVED BY MAYOR DUNN AND SECONDED BY VICE MAYOR AAMES AND UNANIMOUSLY CARRIED TO AUTHORIZE THE CEO TO EXECUTE THE MEMORANDUM OF UNDERSTANDING REGARDING PLANNING AND PROGRAMMING RESPONSIBILITIES IN THE REGION. 8. METRO Advertising Policy Restrictions Mr. Farry reviewed the current Advertising Policy and noted that the City of Phoenix recently changed its restrictions to allow the sale of advertising related to alcohol on the bus system and at selected transit furniture locations. Mr. Farry discussed a possible amendment to the METRO Advertising Policy to remove the restriction of advertising of beer/wine/alcohol to be consistent with the City of Phoenix advertising policies. Any change to the advertising policy restriction on alcohol, would include an adherence to the rules and regulations as set forth by the Arizona Department of Liquor Licenses and Controls guidelines. Further, the separation requirement of advertising alcohol would be 600 feet in instances where light rail station platforms are located near schools or churches. Additionally, station platform advertising is currently only authorized in the City of Phoenix. At this early stage in the advertising program, CBS Outdoor has indicated that allowing alcohol advertising could add 1020% to the sales that we would have without it. New York City and Cleveland systems allow advertising of alcohol. Mayor Dunn recommended looking into what is allowed locally. METRO should be consistent with other mass transit opportunities. Mr. Farry stated that City of Phoenix just changed their policy to advertise alcohol on buses, but it is not allowed on transit in other cities. Vice Mayor Aames is an advocate of advertising; however, he questioned the advertising of alcohol. He noted that there are other categories of advertising to bring in revenue. It is important to consider public image and responsibility related to the advertising of alcohol. He inquired as to why City of Phoenix now allows advertising of alcohol. Chairman Simplot replied that it is due to revenue. Chairman Simplot asked if there is a prohibition to allow casino advertising. Mr. Farry stated that there is not. He also stated that the advertising of wine and beer on public transportation in Minneapolis requires that the ads include language related to drinking responsibly. Mr. James stated that it is important to maintain the positive community image that METRO has established. He recommended that METRO review the City of Phoenix revenue results before allowing the advertising of alcohol on METRO.

METRO Board of Directors Meeting Minutes March 3, 2010 Page 6 of 6 Chairman Simplot requested that additional research be undertaken and that this agenda item be addressed by the Board at a future meeting. He noted that the input of the Rail Management Committee would be important and that staff should further develop information from other cities (i.e., Salt Lake City, Seattle, San Diego, etc.). Vice Mayor Ellis stated that train wraps have resulted in comments from the public regarding concerns with the ability to view activities in the trains with wraps. She noted that although riders are aware that light is coming through the wraps; it is difficult to see inside during daylight hours. Vice Mayor Ellis requested that staff convey this information to CBS Outdoor to perhaps modify the wraps to be more welcoming. 9. Future METRO Board Agenda Items Mr. James stated that with last years fare increase and this years service reductions, it would be beneficial to adjust METRO s fiscal year dates so that service adjustments and cost issues could be better coordinated. Chairman Simplot asked Mr. Banta to bring the timing of budget adoption to the Rail Management Committee for discussion. 10. Adjournment The meeting adjourned at 10:20 a.m.

AGENDA ITEM 5 2010 Light Rail/High Capacity Transit Life Cycle Program Update

AGENDA ITEM 5 To: Through: From: Chairman Simplot and Members of the METRO Board of Directors Stephen R. Banta, Chief Executive Officer Wulf Grote, Director, Project Development John McCormack, Director, Finance and Administration Date: April 14, 2010 Re: 2010 High Capacity/Light Rail Transit Life Cycle Program Update PURPOSE The purpose of this item is to request that the METRO Board of Directors approve the FY 2010 High Capacity/Light Rail Transit (HCT/LRT) Life Cycle Program Update as part of the Regional Transportation Plan (RTP). BACKGROUND/DISCUSSION Each year METRO is tasked with revising the HCT/LRT Life Cycle Program taking into consideration changes in forecasted revenues and the current status of analysis and information available for each project. METRO s last update to the HCT/LRT Life Cycle Program was approved by the Board in June 2009. The comprehensive 2010 HCT/LRT Life Cycle Program Report is attached to this memo. Since the June 2009 adopted HCT/LRT Life Cycle Program update, reductions to regional and local revenues have caused four corridors to be delayed: Northwest Extension Phase I & II; Glendale; and Northeast Phoenix. Existing Life Cycle Program corridor completion dates are illustrated in the table below along with recommended changes commensurate with funding availability. Corridor Existing Recommended Program Changes Northwest Phase 1 2012 2023 Northwest Phase 2 2018 2026 Central Mesa 2016 2016 Tempe South 2016 2016 Glendale 2019 2026 Phoenix West 2021 2021 Northeast Phoenix 2030 2031

METRO Board of Directors Memo April 14, 2010 Page 2 Early action programs for the Phoenix West and Northwest Phase I project have also been included in the update as follows: o Phoenix West: o Structural modifications to the Cityscape garage under Central Avenue in downtown Phoenix to preserve opportunities for future LRT o Construction of a transit ramp connecting the I10 median and I17 southbound frontage road to initially be used by RAPID and express buses. o Northwest Phase I: o Completion of real estate acquisitions, street construction and utility relocations. A map showing the HCT/LRT corridors, including the original, existing and proposed completion dates, in calendar years, is shown in Figure 1 at the end of this memo. The proposed schedule for development of each of the seven HCT/LRT corridors is shown in Figure 2. FISCAL IMPACT The level of fiscal impact as a result of the regional and local revenue forecasts include: Reduced regional Public Transportation Fund (PTF) revenue forecast from $1.67 billion (2009) to $1.60 billion (2010). Reduced local jurisdiction revenue from $479 million to $288 million. Capital program revenues (FY 20102026) are estimated at $3.438 billion in yearofexpenditure dollars. Capital costs for the program are estimated at $3.029 million in yearofexpenditure dollars (includes $68 million program financing costs). A TLCP fund balance of $408.4 million is shown in FY 2026 after the completion of HCT/LRT projects in the RTP, with the exception of construction of the Northeast Phoenix project, which has been delayed for completion until 2031. Similar to the existing HCT/LRT Life Cycle Program, this update limits use of PTF funds only to regional facilities and nonprior rights utility relocations associated with the Northwest Phase I and II and the Glendale projects. The total operating costs for the HCT/LRT projects are estimated in 2010 dollars at $932 million. RAIL MANAGEMENT COMMITTEE CONSIDERATION On April 7, 2010, the Rail Management Committee (RMC) recommended that the Board approve the 2010 HCT/LRT Life Cycle Program Update by a vote of 4 to 2. RECOMMENDATION METRO staff requests that METRO Board of Directors approve the FY 2010 High Capacity/Light Rail Life Cycle Program Update as identified in the attached report. That program includes the schedule of projects, their completion date, costs and revenue sources.

METRO Board of Directors Memo April 14, 2010 Page 3 Figure 1: Updated Regional Transportation Plan HCT/LRT System Map Figure 2: Updated Regional Transportation Plan HCT/LRT System Schedule (in calendar years)

2010 Transit Life Cycle Report High Capacity/Light Rail Transit T F D R A April 2010

Table of Contents 1.0 BACKGROUND... 1 2.0 GUIDING PRINCIPLES... 1 3.0 TLCP UPDATE... 1 4.0 PROJECT SCHEDULES... 3 5.0 REVENUE ASSUMPTIONS... 8 6.0 CAPITAL COST ASSUMPTIONS... 9 7.0 SUMMARY... 11 8.0 OPERATIONS... 11 9.0 CONCLUSION... 12 APPENDIX... 14 2010 Transit Life Cycle Report i April 2010 Valley Metro Rail, Inc.

List of Figures Figure 1: Regional Transportation Plan HCT/LRT System Map... 5 Figure 2: Federal Transit Administration Project Development Process... 6 Figure 3: Regional Transportation Plan HCT/LRT System Schedule... 7 List of Tables Table 1: 2010 Life Cycle Program Changes... 2 Table 2: Project Development Process HCT/LRT Project Phases & Duration... 6 Table 3: Total Program Capital Funding Sources (YOE$)... 8 Table 4: Project Capital Expenditures (YOE$)... 10 Table 5: Total Capital Revenues & Expenses (YOE$)... 11 Table 6: Operating Costs by Project (YOE$)... 12 Table 7: Operating Revenues (YOE$)... 12 2010 Transit Life Cycle Report ii April 2010 Valley Metro Rail, Inc.

1.0 BACKGROUND The Regional Transportation Plan was adopted by the Maricopa Association of Governments (MAG) in 2003. With the successful passing of Proposition 400 in November 2004, the development of a Life Cycle program began for each of the three major transportation elements identified within the RTP over the 20years of the program. The Regional Public Transportation Authority (RPTA) is responsible for preparation of the transit component of the Life Cycle program, and METRO has been further delegated the responsibility to prepare the high capacity transit/light rail transit (HCT/LRT) element. The HCT/LRT Life Cycle Program is updated annually for submittal to the RPTA and identifies project locations, project durations, project capital costs by phase, and project operating costs. Specifically, the program identifies project expenditures and revenues by project and funding categories in yearofexpenditure dollars. This results in an annualized cash flow estimate for the program. 2.0 GUIDING PRINCIPLES Along with the HCT/LRT Life Cycle Program, guiding principles are necessary to continue to guide the program policies and procedures. The policies and procedures for the HCT/LRT Life Cycle Program were approved by the METRO Board in October 2005 and continue to be the framework for development of the HCT/LRT Life Cycle Program. The following are the guiding principles: 1. A defined and consistent process will be established to implement the voter approved Plan (Proposition 400 maps and capital improvements). 2. A defined and consistent process for Plan amendments and changes will be established. 3. Funding allocations will be regularly monitored and managed. 4. A defined and consistent process will be established to ensure that legislated compliance audit, reporting and performance requirements are met. 5. Budgeting and accounting systems will be established to manage Public Transportation Funds and monitor and report results. 6. Jurisdictional equity will be monitored annually over 20 years. 3.0 TLCP UPDATE METRO s last update to the HCT/LRT Life Cycle Program was approved by the Board in June 2009. Since that time there have been several proposed changes and revisions to the program shown in Table 1 which include: 2010 Transit Life Cycle Report 1 April 2010 Valley Metro Rail, Inc.

Public Transportation Fund (PTF) Revenue Forecast: Reduced regional Public Transportation Fund (PTF) revenue forecast from $1.662 billion (2009) to $1.600 billion (2010) based on the Arizona Department of Transportation (ADOT) revenue forecasts from the Proposition 400 regional sales tax. This equates to a reduction of approximately $62 million through the life of the tax. Return to Positive Sales Tax Growth: Based upon ADOT projections, sales tax growth for FY 2011 will be 2%; FY 2012FY 2013 is 89%; FY 2014FY 2015 is 1315%; and FY 2016FY 2026 is 67%. Local Sales Tax Revenue Forecast: Reduced local jurisdiction funding from $479 million to $288 million. This is a $191 million overall reduction primarily due to an updated forecast by the City of Phoenix for revenues associated with the Transit 2000 local sales tax. Inflation Rates: The Arizona Department of Transportation (ADOT) inflation rates were adjusted to reflect current market conditions. The 2009 TLCP Update utilized an inflation rate of 2% in FY2009 and 2010 and 3% annually in FY2011 2026. The 2010 TLCP Update uses the adjusted inflation rate of 0.5% in FY2011, 1.5% in FY2012, 2.5% in FY2013 and 3% annually in FY20142026. Cost Per Mile: The 2009 TLCP Update included a light rail cost per mile estimate of $77.4 million, which was based upon the recently completed Central Phoenix / East Valley starter line, as well as the Northwest Phase I project that recently completed design. The new cost per mile assumption used in the 2010 TLCP Update is $75.1 million per mile in 2010 dollars. This lower cost per mile assumption reflects deflation in the consumer price index, as well as lower material and construction costs associated with the Northwest Phase I cost estimates. Table 1: 2010 Life Cycle Program Changes Proposed Change 2009 TLCP Update 2010 TLCP Update PTF Revenue Forecast $1,662M $1,600M Local Sales Tax Revenue Forecast $479M $288M Inflation Rates FY 2009 = 2.0% FY 2010 = 2.0% FY 20112026 = 3.0% FY 2011 = 0.5% FY 2012 = 1.5% FY 2013 = 2.5% FY 2014 FY 2026 = 3% Cost Per Mile $77.4M (2009$) $75.1M (2010$) In addition to the proposed changes and revisions to the 2010 HCT/LRT TLCP Update, significant progress has been made since the last update on each of the HCT/LRT corridors including: Northwest Phase I: The design was completed in fall of 2009. The rightofway acquisition process is underway and will be completed in fall 2010. Approximately $86.5 million has been spent or committed to date. Construction 2010 Transit Life Cycle Report 2 April 2010 Valley Metro Rail, Inc.

was scheduled to start in summer 2009, but it is currently onhold due to the reduced forecast for Transit 2000 revenues. As a result, the Northwest LRT Extension Phase I is being proposed to be split into three steps: o Step 1: Finish the rightofway acquisition process (2010). o Step 2: Complete utility relocations and street improvements (2013). o Step 3: Complete environmental, design and construction of light rail improvements (2023). Central Mesa: In June 2009, the METRO Board adopted the Central Mesa LRT Extension locally preferred alternative (LPA), which includes a 3.1 mile extension of light rail along Main St. from the existing endofline at Sycamore to Mesa Drive. Tempe South: The Alternatives Analysis is anticipated to be complete in spring 2010. While a recommendation has not been made, the analysis is focusing on a modern streetcar solution along Mill Avenue from downtown Tempe to Southern Avenue. Phoenix West: The Alternatives Analysis is anticipated to be complete in spring 2010. An early recommendation adopted by the METRO Board in 2008 was a high capacity transit alignment within the I10 rightofway west of I17. Two transit modes, Bus Rapid Transit and LRT, are still under consideration. The alignment east from I17 to downtown Phoenix has been narrowed to one primary alignment option for each transit mode. An early action program, estimated to cost approximately $21 million, is also being proposed. It includes reinforcement of the underground Cityscape garage (downtown Phoenix) for LRT loads and construction of a transit ramp connecting the I10 median and I 17 southbound frontage road to initially be used by RAPID and express buses. Glendale: Phase I of the Alternatives Analysis was initiated in February 2010. 4.0 PROJECT SCHEDULES The development of the previous TLCP Update was based upon the corridors and project schedules included in the MAG RTP. Current market conditions, as reflected in the regional PTF and local jurisdiction revenue forecasts, have created substantial funding shortfalls. This causes a redistribution of PTF, local, and federal funds and pushes out construction start dates to be commensurate with available funding. Local jurisdiction funding has been reduced for the Northwest Phase I and Glendale projects and PTF and federal funding have been added to balance these projects. The completion of the HCT/LRT corridors has been delayed as follows: Northwest Phase I: from 2012 to 2023 Northwest Phase II: from 2018 to 2026 Glendale: from 2019 to 2026 2010 Transit Life Cycle Report 3 April 2010 Valley Metro Rail, Inc.

Northeast Phoenix: from 2030 to 2031 No schedule delays are included for the remaining projects. It should be noted that the Northeast Phoenix project remains in the RTP, which extends to 2031. Also, most of the project s duration extends beyond the timeframe of the TLCP and the Proposition 400 sales tax, which end in FY2026. An extension of the sales tax is assumed to allow completion of the Northeast Phoenix project. Completion of the Northwest Phase I & II assumes that Phoenix s Transit 2000 local sales tax will be extended prior to its termination on May 30, 2020. This local sales tax extension is also necessary to provide operating funds for all HCT/LRT projects within the City of Phoenix. Although the construction periods for the Glendale and Northeast projects have been delayed by several years, the TLCP will continue to show early initiation of the Alternatives Analysis for each of these projects. This will allow early definition of the alignment and transit mode to preserve and protect the rightofway and will facilitate coordination with future public and private development within these corridors. The Alternatives Analysis for Glendale will start in 2012 and for Northeast it will start in 2014. A map showing the HCT/LRT corridors, including the original, existing and proposed completion dates, in calendar years, is shown in Figure 1. 2010 Transit Life Cycle Report 4 April 2010 Valley Metro Rail, Inc.

Figure 1: Regional Transportation Plan HCT/LRT System Map 2010 Transit Life Cycle Report 5 April 2010 Valley METRO Rail, Inc.

Given that federal funding is anticipated for each of the HCT/LRT corridors in the RTP, the development of a HCT/LRT project involves adherence to a rigorous federal process. Federal review occurs at various milestones. This federal approval process includes the review of alternative transit technologies (e.g. light rail transit, bus rapid transit, etc) and alignments, the development of draft and final environmental impact statements, preliminary engineering, and final design. These steps are followed by the purchase of rightofway, utility relocations, construction, and testing of the system. Taken together, the entire development process takes about ten to twelve years to complete, depending upon the length and complexity of the project. The project s duration and development steps are integral factors considered in the development of the HCT/LRT Life Cycle program. Figure 2 and Table 2 below identify these steps and their duration in the project development process. Figure 2: Federal Transit Administration Project Development Process Table 2: Project Development Process HCT/LRT Project Phases & Duration Project Phase Duration (months) Alternative Analysis / DEIS 1824 Preliminary Engineering / FEIS 1824 Final Design 1218 RightofWay Acquisition 2430 Utility Relocation 2430 Construction / Testing / StartUp 3048 The revised schedule for development of each of the seven HCT/LRT projects is shown in Figure 3. The early action program for the Phoenix West Corridor has also been added to the schedule. 2010 Transit Life Cycle Report 6 April 2010 Valley Metro Rail, Inc.

Figure 3: Regional Transportation Plan HCT/LRT System Schedule 2010 Transit Life Cycle Report 7 March 2010 Valley Metro Rail, Inc.

5.0 REVENUE ASSUMPTIONS The HCT/LRT Life Cycle Program revenues (FY20102026) for capital are estimated at $3.438 million in yearofexpenditure dollars. Program funding sources include tax revenues from the 20year onehalf cent sales tax Public Transportation Fund (PTF), FTA 5309/5339 New Starts, Congestion Mitigation Air Quality (CMAQ), and other federal, with local match contributions from the cities of Glendale and Phoenix. Table 3 below summarizes these funding sources. Table 3: Total Program Capital Funding Sources (YOE$) Source Amount Percent of Total PTF $1,600 46.5% Federal $1,550 45.1% Local $288 8.4% Total $3,438 100.0% Within each of the HCT/LRT corridor projects, there are also a variety of assumptions that have been used, including: Northwest Phase I: The Northwest LRT Extension Phase I, roadway and transit projects, will be funded jointly by Phoenix, PTF, FHWA, CMAQ and FTA Section 5309 Small Starts funds as follows: o Step 1: Finish the rightofway acquisition process (Phoenix, PTF); o Step 2: Complete utility relocations and street improvements (Phoenix, PTF, and FHWA), and; o Step 3: Complete environmental, design and construction of light rail fixed guideway (PTF, CMAQ and FTA Section 5309 Small Starts). Northwest Phase II: The Northwest LRT Extension Phase II will include federal funding primarily through the FTA Section 5309 Small Starts program. The local match will be provided primarily through Phoenix, with PTF funding the costs of regional facilities. Central Mesa: The Central Mesa LRT Extension will include federal funding primarily through the FTA Section 5309 Small Starts program, which has a cap on federal participation equal to $75 million and total capital costs equal to $250 million. The local match will be provided through the PTF. Tempe South: The Tempe South Corridor will include federal funding primarily through the FTA Section 5309 Small Starts program. The local match will provided through the PTF. Phoenix West: The Phoenix West Corridor will include federal funding through the FTA Section 5309 New Starts program. The local match will be provided through the PTF. 2010 Transit Life Cycle Report 8 April 2010 Valley Metro Rail, Inc.

Glendale: The Glendale Corridor will be funded with Glendale, Phoenix, PTF and federal funds. The federal funding is through FTA CMAQ and 5309 New Starts Funds. The PTF will fund the local share of the capital project costs for the regional parkandride, bridges and light rail vehicles. For all other costs in the 5 mile corridor, Glendale will fund the local share cost for 3.5 miles and Phoenix will fund the local share cost for 1.5 miles. Glendale will fund 100% of the operating costs for the miles within the city of Glendale and Phoenix will fund 100% of the operating costs for the miles in Phoenix. Northeast Phoenix: The Northeast Phoenix Corridor will include federal funding through the FTA Section 5309 New Starts program. The local match will be provided through the PTF. The PTF revenue forecasts are consistent with the ADOT projections and cover the local share of all projects, except Northwest Phase I & II and Glendale. FTA Section 5339 Alternatives Analysis program funds will be requested annually through Congressional appropriations requests. Currently, these funds have been earmarked for the Central Mesa ($437,500), Tempe South ($437,500) and Phoenix West ($2,675,000). FTA Section 5309 funds will be utilized for all projects. The maximum allotment of Section 5309 funds per year systemwide is capped at $90 million in 2010$. CMAQ funds are not precluded from any project and are based on MAG s forecast. Revenues considered are as identified in the RTP. Revenues from the FTA Section 5309, CMAQ, PTF and local tax sources are shown in year of expenditure (YOE) dollars except for CP/EV where FTA Section 5309 is based upon the FFGA. 6.0 CAPITAL COST ASSUMPTIONS Capital costs for the program are estimated at $2.961 million in yearofexpenditure dollars. This estimate includes the design, land acquisition and construction expenses for each of the seven corridor projects thru 2026, reimbursements for all private utility relocations, repayment to Phoenix, Tempe and Mesa for regional infrastructure developed in the initial project, systemwide support infrastructure in future years and necessary systems planning and design standards. In addition, costs to finance the projects are estimated at $68 million, bringing the overall program costs to $3.029 million. Table 4 reviews the updated expenditures by project and highlights the added cost estimate for nonprior right utility relocations. 2010 Transit Life Cycle Report 9 April 2010 Valley Metro Rail, Inc.

Project Table 4: Project Capital Expenditures (YOE$) RTP Base (YOE$) + NonPrior Rights Utilities (YOE $) Total (YOE $) Northwest Phase I $310 $18 $327 Northwest Phase II $124 $6 $130 Central Mesa $233 $7 $240 Tempe South $153 $9 $162 Phoenix West $882 $25 $907 Glendale $428 $21 $449 Northeast Phoenix (thru 2026) $194 $194 CP/EV Regional Reimbursements / Utilities $199 $78 $277 Systemwide Support (constrained) $240 N/A $240 Design Standards $7 N/A $7 Capital Project Development Admin $28 N/A $28 Total $2,797 $164 $2,961 (Cost of Financing estimated at $68 million, Total Program cost $3,029 million) Within each of the project capital cost estimates, there are also a variety of assumptions that have been used, including: All capital cost estimates were estimated in base year dollars (2010$) and inflated to yearofexpenditure dollars. As mentioned in Section 3.0, the future costs are inflated at a rate of 0.5% in FY2011, 1.5% in FY2012, 2.5% in FY2013 and 3% annually in FY20142026. The total capital cost estimate of each project, with the exception of the Tempe South Corridor, is based upon the weighted average costs of the CP/EV and the Northwest Phase I amount of $75.1 million per mile. The Tempe South Corridor assumes a modern streetcar technology with a capital cost estimate of $57.9 million per mile. Alternatives Analysis / Draft Environmental Impact Statement (DEIS) or Draft Environmental Assessment (DEA) = $4 $6 million depending on project length and study area size. Preliminary Engineering / Final Environmental Impact Statement (FEIS) or Final Environmental Assessment (FEA) = PE @ 9% of [ROW+Construction] + FEIS or FEA @ 25% of [AA/DEIS or DEA] Final Design = 6% of [ROW+Construction] ROW = $5.564 per mile (average of CP/EV & NWE estimates) for all corridors except for Phoenix West which uses $500,000 per mile for 7 out of 11 miles. Prior Rights Utilities = $2.256 million per mile (average of CP/EV & NWE estimates) NonPrior Rights Utilities = $3.6 million per mile (average of CP/EV costs) Construction Costs = approximately 2/3 s of total base costs 2010 Transit Life Cycle Report 10 April 2010 Valley Metro Rail, Inc.

Includes: public utilities including water services, contingency, project reserve, construction management costs, insurance, public art, vehicles, regional maintenance and storage facilities) 7.0 SUMMARY A summary of overall capital program revenues and expenses is shown in Table 6. This table also identifies estimated financing needs to allow the projects to move forward on schedule. A funding balance of $408.4 million is shown at the completion of all HCT/LRT projects in the RTP. A detailed report of all of the capital program revenues and expenses is shown on the Capital Summary table included in the Appendix. Table 5: Total Capital Revenues & Expenses (YOE$) Items Impacting Funding Requirements $ (in millions) Funding Surplus / Shortfall Total Program Revenues $3,438.0 Total Base Program Cost $2,797.2 Funding surplus before added utility expenses and financing $640.9 Non Prior Right Utility Relocations $164.1 $164.1 Financing Needs anticipated: Cost Estimate Principal Finance FY 2009 $55.3 $29.5 FY 2013 $100.0 $38.9 Subtotal $155.3 $68.4 $68.4 $75.9 Total Program Cost $3,029.7 Net TLCP Balance $408.4 8.0 OPERATIONS Another component of the HCT/LRT Life Cycle Program is the operating expense and revenue evaluation. The annual operating costs for HCT/LRT projects are estimated in 2010 dollars at a rate of $1.20 million per mile and are based on the initial 20mile project s current variable cost forecast. Costs are escalated for annual inflation at 3.0%. Operating costs are paid by fare revenues and METRO member city contributions. Fares are anticipated to cover 26% of the cost of operations. Table 7 outlines the operating expenditures and Table 8 outlines the operating revenues through 2026. A detailed report of all of the operating program revenues and expenses is shown on the Operating Summary table included in the Appendix. 2010 Transit Life Cycle Report 11 April 2010 Valley Metro Rail, Inc.

Table 6: Operating Costs by Project (YOE$) 9.0 CONCLUSION Project Operating Costs Total (YOE $) (Opening Year) to 2026 CP/EV (2008) $750 Northwest Phase I (2023) $15 Northwest Phase II (2026) Central Mesa (2016) $50 Tempe South (2016) $25 Phoenix West (2021) $92 Glendale (2026) Northeast Phoenix (2031) Total $932 Table 7: Operating Revenues (YOE$) Project Operating Revenues Total (YOE $) (Opening Year) to 2026 Phoenix T2000 $438 Tempe Transit Sales Tax $181 Mesa General Fund $69 Glendale GO Fare Revenues (26%) $244 Total $932 Staff from METRO member cities, RPTA, and MAG has been included in the review process and their comments have been incorporated. The capital and operating expenses and costs of the HCT/LRT Life Cycle Program are currently in balance. However, future funding considerations and refinements include: An extension of PTF, or other funding beyond, FY2026 will be needed to fully fund the Northeast Corridor Project. An extension of the Phoenix Transit 2000 sales tax, or other funding source, will be needed to complete construction of Northwest Phase I & II, as well as to fund operations for several HCT/LRT projects in Phoenix. Federal transportation reauthorization, and the level of funding provided for major transit capital projects will affect the HCT/LRT projects in the region. The current federal transportation act expired in September 2009. The legislation is currently authorized through a short term Continuing Resolution. 2010 Transit Life Cycle Report 12 April 2010 Valley Metro Rail, Inc.

During the next year, two of METRO s corridor planning studies (Tempe South and Phoenix West) will be completed and will include updated cost estimates that will be reflected in next year s TLCP Update. METRO will continue to verify annually the availability of regional and local sales tax revenues for capital improvements and for operations and maintenance costs for each corridor project. Annual updates will be prepared to refine future systemwide support infrastructure needs (e.g., facility modernization, upgrades and expansion). Funding for these needs is currently constrained and additional resources will need to be identified. METRO is working to define regional operations and maintenance facility needs as part of each project and will work to fund this activity through allocations from each individual corridor project. 2010 Transit Life Cycle Report 13 April 2010 Valley Metro Rail, Inc.

APPENDIX 2010 Transit Life Cycle Report 14 April 2010 Valley Metro Rail, Inc.

2010 TLCP PROGRAM UPDATE Capital Summary Year of Expenditure (YOE$) YEAR CAPITAL SUMMARY 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 CAPITAL EXPENDITURES Northwest Phase I $ $ 2,452,801 $ 23,616,000 $ 30,658,000 $ 30,750,000 $ 4,443,908 $ 58,705,994 $ 64,702,195 $ $ $ Northwest Phase II $ $ $ $ $ $ $ $ $ $ $ Central Mesa $ $ 11,169 $ 1,177,310 $ 1,682,442 $ 2,510,824 $ 14,381,259 $ 25,099,654 $ 41,273,275 $ 51,222,399 $ 56,130,583 $ 37,903,529 Tempe South $ $ 3,466 $ 600,631 $ 1,686,895 $ 1,686,895 $ 5,965,036 $ 18,627,242 $ 29,575,451 $ 29,980,935 $ 28,852,360 $ 29,715,046 Phoenix West $ $ 27,186 $ 1,259,668 $ 1,600,000 $ 14,852,053 $ 9,117,900 $ 16,059,151 $ 19,490,499 $ 32,951,654 $ 35,930,037 $ 44,483,607 Glendale $ $ $ $ $ $ $ 595,568 $ 1,219,009 $ 626,753 $ $ Northeast Phoenix $ $ $ $ $ $ $ $ 1,253,838 $ 1,289,321 $ $ CP/EV Regional Reimbursements $ 11,700,029 $ 43,623,149 $ 68,709,786 $ 47,320,459 $ 57,958,445 $ 31,532,100 $ 6,218,189 $ 10,000,000 $ $ $ Systemwide Support Infrastructure $ $ $ $ $ 570,000 $ 10,336,508 $ 10,357,341 $ 10,500,000 $ 28,566,472 $ 500,000 $ 500,000 Design Standards & System Planning $ $ 680,461 $ 1,387,048 $ 792,744 $ 780,000 $ 780,135 $ 785,734 $ 802,243 $ 803,722 $ $ Capital Project Development Administration $ $ $ $ $ 1,125,000 $ 1,506,750 $ 1,531,461 $ 1,567,297 $ 1,611,651 $ 1,659,840 $ 1,709,469 TOTAL CAPITAL EXPENDITURES $ 11,700,029 $ 46,798,231 $ 96,750,443 $ 83,740,541 $ 110,233,217 $ 78,063,596 $ 137,980,334 $ 180,383,806 $ 147,052,908 $ 123,072,820 $ 114,311,650 CAPITAL REVENUES Section 5309 $ $ $ $ 1,400,000 $ 1,212,500 $ 1,500,000 $ 23,275,454 $ 39,475,207 $ 45,508,403 $ 47,027,000 $ 36,240,000 Congestion Mitigation Air Quality (CMAQ) $ $ $ $ $ 993,000 $ 16,000,000 $ 16,377,000 $ 16,719,000 $ 16,955,000 $ 25,180,000 $ 20,442,000 Section 5307 $ $ $ $ $ $ $ $ $ $ $ Special Federal $ $ $ $ $ 12,500,000 $ 9,296,848 $ 29,375,818 $ 35,427,368 $ $ $ Public Transportation Fund (PTF) $ 22,115,589 $ 56,293,147 $ 54,622,329 $ 47,140,423 $ 45,402,000 $ 46,353,280 $ 49,985,440 $ 54,568,880 $ 62,654,760 $ 70,870,360 $ 75,453,800 Phoenix T2000 $ $ 2,479,987 $ 24,875,668 $ 28,808,000 $ 20,779,053 $ (1,026,018) $ (1,600,262) $ 134,435 $ $ $ Phoenix Water Services Department (WSD) $ $ $ $ $ $ $ 21,700,000 $ 21,000,000 $ $ $ Phoenix HURF $ $ $ $ $ $ $ $ $ $ $ Glendale OnBoard (GO) $ $ $ $ $ $ $ $ $ $ $ RPTA $ $ $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ $ MAG $ $ $ 824,809 $ 192,744 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ $ TOTAL CAPITAL REVENUES $ 22,115,589 $ 58,773,134 $ 80,822,806 $ 78,041,167 $ 81,636,553 $ 72,874,110 $ 139,863,450 $ 168,074,890 $ 125,868,163 $ 143,077,360 $ 132,135,800 2010 Transit Life Cycle Report Valley Metro Rail, Inc. Appendix i April 2010

2010 TLCP PROGRAM UPDATE Capital Summary Year of Expenditure (YOE$) CAPITAL SUMMARY YEAR 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 TOTAL CAPITAL EXPENDITURES Northwest Phase I Northwest Phase II Central Mesa Tempe South Phoenix West Glendale Northeast Phoenix CP/EV Regional Reimbursements Systemwide Support Infrastructure Design Standards & System Planning Capital Project Development Administration TOTAL CAPITAL EXPENDITURES CAPITAL REVENUES Section 5309 Congestion Mitigation Air Quality (CMAQ) Section 5307 Special Federal Public Transportation Fund (PTF) Phoenix T2000 Phoenix Water Services Department (WSD) Phoenix HURF Glendale OnBoard (GO) RPTA MAG TOTAL CAPITAL REVENUES $ $ $ 265,122 $ 546,045 $ 18,854,895 $ 19,110,517 $ 73,238,825 $ $ $ $ 327,344,302 $ $ 198,038 $ 407,880 $ 2,208,796 $ 4,008,547 $ 5,593,332 $ 7,419,302 $ 42,600,583 $ 44,664,768 $ 22,977,790 $ 130,079,037 $ 8,578,469 $ $ $ $ $ $ $ $ $ $ 239,970,912 $ 15,300,277 $ $ $ $ $ $ $ $ $ $ 161,994,234 $ 119,132,899 $ 135,742,264 $ 118,737,968 $ 117,076,261 $ 120,565,134 $ 119,881,575 $ $ $ $ $ 906,907,857 $ 1,369,209 $ 1,201,433 $ 20,236,411 $ 34,779,345 $ 36,858,045 $ 61,450,960 $ 79,973,617 $ 82,284,855 $ 84,662,887 $ 43,554,822 $ 448,812,914 $ $ $ $ $ 1,349,562 $ 1,388,564 $ 1,428,694 $ 31,768,479 $ 55,591,093 $ 100,258,575 $ 194,328,126 $ $ $ $ $ $ $ $ $ $ $ 277,062,157 $ 19,951,326 $ 7,251,486 $ 29,870,319 $ 500,000 $ 500,000 $ 9,506,171 $ 14,472,713 $ 46,004,878 $ 19,229,608 $ 31,199,964 $ 239,816,785 $ $ $ $ $ $ $ $ $ $ $ 6,812,087 $ 1,760,411 $ 1,544,700 $ 1,590,732 $ 1,638,136 $ 1,686,952 $ 1,735,705 $ 1,785,867 $ 1,837,479 $ 1,890,582 $ 1,945,220 $ 28,127,252 $ 166,092,592 $ 145,937,921 $ 171,108,433 $ 156,748,584 $ 183,823,136 $ 218,666,824 $ 178,319,017 $ 204,496,273 $ 206,038,937 $ 199,936,371 $ 2,961,255,662 $ 47,500,000 $ 75,000,000 $ 85,000,000 $ 92,000,000 $ 94,000,000 $ 102,000,000 $ 92,000,000 $ 73,719,236 $ 90,896,022 $ 83,553,409 $ 1,031,307,231 $ 20,465,000 $ 22,000,000 $ 22,300,000 $ 23,500,000 $ 23,863,340 $ 24,506,987 $ 25,500,000 $ 26,800,000 $ 27,500,000 $ 28,400,000 $ 357,501,326 $ 15,961,061 $ 5,801,188 $ 7,467,580 $ 400,000 $ 400,000 $ 7,604,937 $ 3,618,178 $ 11,501,219 $ 15,383,686 $ 6,696,578 $ 74,834,427 $ $ $ $ $ $ $ $ $ $ $ 86,600,035 $ 80,253,440 $ 85,658,440 $ 91,149,920 $ 96,641,400 $ 102,392,320 $ 109,353,960 $ 115,710,240 $ 122,671,880 $ 130,325,360 $ 80,599,360 $ 1,600,216,328 $ $ 73,274 $ 150,916 $ 817,255 $ 21,838,059 $ (1,319,948) $ 31,983,969 $ 19,477,874 $ 22,525,979 $ 11,500,000 $ 181,498,241 $ $ $ $ $ $ $ $ $ $ $ 42,700,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 3,000,000 $ 5,000,000 $ 6,424,668 $ 20,044,591 $ 18,300,000 $ 10,609,955 $ 63,379,213 $ $ $ $ $ $ $ $ $ $ $ 3,500,000 $ $ $ $ $ $ $ $ $ $ $ 2,267,553 $ 164,179,501 $ 188,532,903 $ 206,068,416 $ 213,358,655 $ 245,493,719 $ 247,145,935 $ 275,237,055 $ 274,214,801 $ 304,931,047 $ 221,359,301 $ 3,443,804,354 2010 Transit Life Cycle Report Valley Metro Rail, Inc. Appendix i April 2010

2010 TLCP PROGRAM UPDATE Operating Summary Year of Expenditure (YOE$) YEAR OPERATIONS SUMMARY 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 OPERATING EXPENDITURES CP/EV $ $ $ $ 15,762,407 $ 33,733,168 $ 34,745,163 $ 35,787,518 $ 36,861,143 $ 37,966,978 $ 39,105,987 $ 40,279,167 Northwest Phase I $ $ $ $ $ $ $ $ $ $ $ Northwest Phase II $ $ $ $ $ $ $ $ $ $ $ Central Mesa $ $ $ $ $ $ $ $ $ $ $ Tempe South $ $ $ $ $ $ $ $ $ $ $ Phoenix West $ $ $ $ $ $ $ $ $ $ $ Glendale $ $ $ $ $ $ $ $ $ $ $ Northeast Phoenix $ $ $ $ $ $ $ $ $ $ $ TOTAL OPERATING EXPENDITURES $ $ $ $ 15,762,407 $ 33,733,168 $ 34,745,163 $ 35,787,518 $ 36,861,143 $ 37,966,978 $ 39,105,987 $ 40,279,167 OPERATING REVENUES Phoenix T2000 $ $ $ $ 7,558,177 $ 16,097,539 $ 16,580,465 $ 17,077,879 $ 17,590,215 $ 18,117,922 $ 18,661,460 $ 19,221,303 Tempe Transit Sales Tax $ $ $ $ 3,158,254 $ 7,262,129 $ 7,479,993 $ 7,704,393 $ 7,935,524 $ 8,173,590 $ 8,418,798 $ 8,671,362 Mesa General Fund $ $ $ $ 550,976 $ 1,388,341 $ 1,429,991 $ 1,472,891 $ 1,517,078 $ 1,562,590 $ 1,609,468 $ 1,657,752 Glendale OnBoard (GO) $ $ $ $ $ $ $ $ $ $ $ Fare Revenues $ $ $ $ 4,495,000 $ 8,985,159 $ 9,254,714 $ 9,532,355 $ 9,818,326 $ 10,112,876 $ 10,416,262 $ 10,728,750 TOTAL OPERATING REVENUES $ $ $ $ 15,762,407 $ 33,733,168 $ 34,745,163 $ 35,787,518 $ 36,861,143 $ 37,966,978 $ 39,105,987 $ 40,279,167 2010 Transit Life Cycle Report Valley Metro Rail, Inc. Appendix ii April 2010

2010 TLCP PROGRAM UPDATE Operating Summary Year of Expenditure (YOE$) YEAR OPERATIONS SUMMARY 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 TOTAL OPERATING EXPENDITURES CP/EV $ 41,487,542 $ 42,732,168 $ 44,014,133 $ 45,334,557 $ 46,694,594 $ 48,095,432 $ 49,538,294 $ 51,024,443 $ 52,555,177 $ 54,131,832 $ 749,849,702 Northwest Phase I $ $ $ $ $ $ $ $ 3,374,740 $ 5,958,827 $ 6,137,592 $ 15,471,159 Northwest Phase II $ 2,658,224 $ 4,693,663 $ 4,834,473 $ 4,979,507 $ 5,128,893 $ 5,282,759 $ 5,441,242 $ 5,604,479 $ 5,772,614 $ 5,945,792 $ 50,341,646 Central Mesa $ 1,363,044 $ 2,336,648 $ 2,406,747 $ 2,478,949 $ 2,553,318 $ 2,629,917 $ 2,708,815 $ 2,790,079 $ 2,873,782 $ 2,959,995 $ 25,101,294 Tempe South $ $ $ $ $ $ $ $ $ $ $ Phoenix West $ $ $ $ $ $ 10,934,744 $ 19,307,633 $ 19,886,862 $ 20,483,468 $ 21,097,972 $ 91,710,680 Glendale $ $ $ $ $ $ $ $ $ $ $ Northeast Phoenix $ $ $ $ $ $ $ $ $ $ $ TOTAL OPERATING EXPENDITURES $ 45,508,810 $ 49,762,479 $ 51,255,353 $ 52,793,014 $ 54,376,804 $ 66,942,852 $ 76,995,985 $ 82,680,604 $ 87,643,867 $ 90,273,183 $ 932,474,482 OPERATING REVENUES Phoenix T2000 $ 19,797,943 $ 20,391,881 $ 21,003,637 $ 21,633,746 $ 22,282,759 $ 31,152,299 $ 38,120,504 $ 41,795,174 $ 44,911,163 $ 46,258,498 $ 438,252,563 Tempe Transit Sales Tax $ 10,021,938 $ 11,068,766 $ 11,400,829 $ 11,742,854 $ 12,095,139 $ 12,457,993 $ 12,831,733 $ 13,216,685 $ 13,613,186 $ 14,021,581 $ 181,274,747 Mesa General Fund $ 3,701,152 $ 5,278,956 $ 5,437,325 $ 5,600,445 $ 5,768,458 $ 5,941,512 $ 6,119,757 $ 6,303,350 $ 6,492,450 $ 6,687,224 $ 68,519,716 Glendale OnBoard (GO) $ $ $ $ $ $ $ $ $ $ $ Fare Revenues $ 11,987,777 $ 13,022,876 $ 13,413,562 $ 13,815,969 $ 14,230,448 $ 17,391,048 $ 19,923,991 $ 21,365,396 $ 22,627,069 $ 23,305,881 $ 244,427,456 TOTAL OPERATING REVENUES $ 45,508,810 $ 49,762,479 $ 51,255,353 $ 52,793,014 $ 54,376,804 $ 66,942,852 $ 76,995,985 $ 82,680,604 $ 87,643,867 $ 90,273,183 $ 932,474,482 2010 Transit Life Cycle Report Valley Metro Rail, Inc. Appendix ii April 2010