Valley Metro RPTA. Date: January 18, Starting Time 11:15 a.m. Meetings to occur sequentially

Transcription

1 MEETINGS OF THE Boards of Directors Joint Meeting of Valley Metro RPTA and Valley Metro Rail Valley Metro RPTA Valley Metro Rail Date: January 18, 2018 Starting Time 11:15 a.m. Meetings to occur sequentially Location: Valley Metro Lake Powell Conference Room (10A) 101 N. 1 st Avenue, 10 th Floor Phoenix If you require assistance accessing the meetings on the 10 th floor, please go to the 13 th floor or call Valley Metro I 101 N. 1st Ave. Phoenix, AZ

2 Agenda January 11, 2018 Joint Meeting Agenda RPTA Board of Directors And VMR Board of Directors Thursday, January 18, 2018 Lake Powell Conference Room 101 N. 1st Avenue, 10 th Floor 11:15 a.m. Action Recommended 1. Public Comment On Agenda Action Items (yellow card) 1. For Information The public will be provided with an opportunity at this time to address the committees on all action agenda items. Up to three minutes will be provided per speaker to address all agenda items unless the Chair allows more at his/her discretion. A total of 15 minutes for all speakers will be provided. 2. Chief Executive Officer s Report 2. For information Scott Smith, CEO, will brief the Joint Boards of Directors on current issues. 3. Minutes 3. For action Minutes from the November 30, 2017 Joint Board meeting are presented for approval. Valley Metro I 101 N. 1st Ave. Phoenix, AZ

3 4. Public Comment on Agenda Action Items (blue card) 4. For information The public will be provided with an opportunity at this time to address the Boards on all action agenda items. Up to three minutes will be provided per speaker to address all agenda items unless the Chair allows more at his/her discretion. A total of 15 minutes for all speakers will be provided. 5. Executive Session 5. For action The Boards may vote to enter Executive Session for discussion or consultation for legal advice with the attorney or attorneys of the public body and to consider its position and instruct its attorneys regarding the public body s position regarding personnel matters and contracts that are the subject of negotiations, in pending or contemplated litigation or in settlement discussions conducted in order to avoid or resolve litigation; all as authorized by A.R.S. Sections A.1, A.3., and A.4. The agenda for Executive Session involves discussion and consultation regarding employment contract matters concerning the Chief Executive Officer. Discussion and consultation may be both with and without the Chief Executive Officer in attendance. 6. Executive Session Action Items 6. For action The Boards may take action related to items discussed as part of Agenda Item Chief Executive Officer Goals and Objectives January-June For action The Boards will be requested to take action to approve the CEO goals and objectives for January-June

4 8. Travel, Expenditures and Solicitations 8. For information The monthly travel, expenditures and solicitations for Valley Metro RPTA and Valley Metro Rail are presented for information. 9. Future Agenda Items Request and Report on Current Events 9. For information Chairs Klapp and Glover will request future agenda items from members, and members may provide a report on current events. Qualified sign language interpreters are available with 72 hours notice. Materials in alternative formats (large print, audiocassette, or computer diskette) are available upon request. For further information, please call Valley Metro at or TTY at To attend this meeting via teleconference, contact the receptionist at for the dial-in-information. The supporting information for this agenda can be found on our web site at 3

5 Information Summary DATE AGENDA ITEM 1 January 11, 2018 SUBJECT Items for Citizens Present PURPOSE An opportunity will be provided to members of the public at the beginning of the meeting to address the Boards on non-agenda items. Up to three minutes will be provided per speaker or a total of 15 minutes for all speakers. BACKGROUND DISCUSSION CONSIDERATION COST AND BUDGET COMMITTEE PROCESS RECOMMENDATION This item is presented for information only. CONTACT Scott Smith Chief Executive Officer ssmith@valleymetro.org ATTACHMENT Valley Metro I 101 N. 1st Ave. Phoenix, AZ

6 Information Summary DATE AGENDA ITEM 2 January 11, 2018 SUBJECT Chief Executive Officer s Report PURPOSE Scott Smith, Chief Executive Officer, will brief the Boards of Directors on current issues. BACKGROUND DISCUSSION CONSIDERATION COST AND BUDGET COMMITTEE PROCESS RECOMMENDATION This item is presented for information only. CONTACT Scott Smith Chief Executive Officer ssmith@valleymetro.org ATTACHMENT Valley Metro I 101 N. 1st Ave. Phoenix, AZ

7 Minutes January 11, 2018 Agenda Item 3 Board of Directors Thursday, November 30, 2017 Lake Powell Conference Room 101 N. 1st Avenue, 10 th Floor 11:15 a.m. RPTA Meeting Participants Councilmember Suzanne Klapp, City of Scottsdale (Chair) Councilmember Lauren Tolmachoff, City of Glendale (Vice Chair) Vice Mayor Kevin Hartke, City of Chandler (Treasurer) Councilmember Pat Dennis, City of Avondale - (phone) Councilmember Eric Orsborn, City of Buckeye Vice Mayor Bob Jones, City of El Mirage Councilmember Brigette Peterson, Town of Gilbert - (phone) Councilmember Bill Stipp, City of Goodyear Supervisor Steve Gallardo, Maricopa County Vice Mayor Jon Edwards, City of Peoria Councilmember Thelda Williams, City of Phoenix Councilmember Skip Hall, City of Surprise Vice Mayor Robin Arredondo-Savage, City of Tempe Mayor Everett Sickles, Town of Wickenburg Mayor Michael LeVault, Town of Youngtown Members not present Councilmember Linda Laborin, City of Tolleson Councilmember Chris Glover, City of Mesa VMR Meeting Participants Scott Butler for Councilmember Chris Glover, City of Mesa (Chair) Councilmember Thelda Williams, City of Phoenix (Vice Chair) Vice Mayor Kevin Hartke, City of Chandler Councilmember Laruen Tolmachoff, City of Glendale Vice Mayor Robin Arredondo-Savage, City of Tempe Chair Klapp called the meeting to order at 11:13 a.m. Valley Metro I 101 N. 1st Ave. Phoenix, AZ

8 We will begin with the yellow card that's been presented. This is an opportunity for the members to speak on non-agenda items, and you have up to three minutes. Please, again, state your name and city for the record. We'll begin with Blue. 1. Items for Citizens Present Mr. Crowley said what is your job? Why are you here? One of the things is air quality. And what is today? What have they been saying over and over again, anybody that's sensitive and has breathing problems, young, old we're under an air quality watch. Now, would that be there as intently as it is for the last thirty-five years if we had been producing a bus system that was at the quality of this metropolitan area? Would that have had some effect on the single vehicle occupancy? Oh, yeah, that's your job. Put an A on your -- no, it's an F you got to put on there, because that's what happened. Today, all through the summer when we were in those radically high temperatures what was the other part of the equation, air quality? So, when I ask you why are you here, I know that part of your job being there is putting together a mass transit system for the area so that we get people out of their single occupant vehicles that it works well enough for them. So, what have you done? Wickenburg they took away the route there so that adds how much? Now, it wasn't overwhelming the number of people using it, but when they cut it out, people lost their jobs and had to then -- or if not go and buy whatever that added to the situation or detracted from it. So, I need you to get back and get that Wickenburg connector. I also need you to have one going to Queen Creek. I also need you to have something going out to Tonopah and such. The area that you represent is the size of New Jersey. The amount of transportation and transit, the Wickenburg connector would go through -- oh, yeah, Surprise, which doesn't have any adequate right now. Wickenburg's got a circulator going there right now. And it circulates between the communities because it's an economic engine for the area. Why aren't we doing the same? Now, I know that you're all parochial in what you have to say up there because you have constituencies that you have to represent, but please, start getting the job done and doing it right. And running over just a bit. You didn't get to see a little video that they produced. I'm offended by that video. It says do not approach members of the committee. It was played first at the manager's meeting. And I look at those little -- those individuals and their attitude towards the public, and I go, wait a minute. You're 2

9 representing your electeds here and you're saying to your constituency we don't need interchange. And then when I see it here, I go, wait a minute. If there's something up here speaking to you and it's in your constituency before they person gets down off the podium, you have a staff person, possibly the one at that manager's meeting going over and dealing with them. So, if you would please take that out of there. I don't know why you paid money to put it in. We've already got this and the officer. What's the problem with the public. 2. Chief Executive Officer s Report Chair Klapp said we'll move on to the report from Scott Smith. Mr. Smith said thank you, Madam Chair, and members of the Boards, appreciate you being here and happy holidays. It's been an eventful year and been an eventful month since we last got together. I want to go over a few of the things that involve most of your cities. The first one is last October on the 23rd we expanded routes. Had celebrations out in Peoria related to Glendale and Phoenix related to the Route 83 expansion. This is one of new expanded bus routes that started service last month. We also added more miles of service in Avondale, Chandler, Gilbert, and Tempe. And last week was pleased to go to Tempe, last Saturday, as a matter of fact, to celebrate the expansion of their Saturn circulator which took bus service -- local bus service to the south of U.S. 60 in the City of Tempe for the first time. We also had a public meeting in Mesa to go over alternative analysis for high-capacity transportation corridor in the Fiesta District. Very well attended. A lot of good feedback from the community. And appreciate working with the City of Mesa staff on that. At the beginning of November, we had our 30th Annual Clean Air Campaign Awards Luncheon to honor individuals and organizations, many from your cities, who demonstrate outstanding efforts in support of clean air programs, alternative mode use, commuter solutions and those kind of things. And we appreciate our staff for putting that together and your staff for working with us to expand that. Another thing I want to talk to you about is to give you an update on the Respect the Ride Campaign. We are in the process of working with our contractor to start the physical work on our light rail platforms which should begin mid-december or so. 3

10 It's taking a little bit longer than we thought to pull everything together. Apparently that nice little paint is more difficult to get than we understood, so that will start in a couple of weeks, but we still envision those being completed sometime the first of We are continuing with our training of Allied Universal and our coordination with the police departments and the communication. If you ride on one of our trains now you'll see that Allied Universal personnel have this nice little badge that we gave you a button and also the cards that we handed out with the idea being that we have a soft educational opening. We're not there to really play the hard stick, but more or less to do the soft sell and to educate people. We've had a great response so far, and we have seen some changes in behavior. And hopefully as we get to the point where we're rolling this out really in the first part of November -- or first part of 2018 everyone will understand what Respect the Ride stands for. So moving forward on that. And you'll also see them wear their hats. I've talked to several of our security personnel. They feel that they have more tools and their ability to interact with the public has been enhanced. They also said there's been some push back. We are working with agencies. I know the City of Phoenix just recently approved an intervention team for the homeless. We are working diligently with all the cities: Phoenix, Tempe, and Mesa to expand our outreach so that as we deal with especially the transient and the homeless community through Respect the Ride that it's one where we guide them towards services that can help them, so we appreciate that. The next thing I want to talk to you about is something that we've been doing here internally. And a couple three weeks ago or so, the leadership of Valley Metro rolled out to our entire staff a program we call "shifting gears." We are always committed to enhancing our ability to serve our clients and our customers and that includes you. We call you our member agencies. That sounds so bureaucratic to me. You really are our customers and our clients, but you're also our partners, so it's a unique relationship that we have, and we are always trying to improve how we interact with that. And then also the public who relies on us to deliver services that are top quality, safe and secure. In doing that we've looked inward a lot and said what can we do to better our ability, meaning the staff, to provide these services and that's where shifting gears came from. As part of that we ask ourselves six critical questions. And those were very simple. Why do we exist? How do we behave? What do we do? How will we succeed? What 4

11 is most important right now? And then what must each of us do as members of the staff? You know, just to go over a couple of these, you have the card in front of you which explains the answers to those questions. The leadership team worked for several months with a facilitator to really come up with things that weren't out of a textbook or anything. They were really to ask very basic questions. I think that every organization needs to know why they exist not what they do but why they exist. We came down to the idea that we exist to connect communities and enhance lives. Everything we do is meant to build a better region and build a region that is connected. And in connecting it we also recognize that we have impact on individuals. Every person who utilizes our service and even those people who don't utilize it but are impacted by our service are impacted. And our goal is to enhance their lives to make it better to create opportunities to do things and do things that they wouldn't ordinarily be able to do. They could live in a cleaner and safer community. In doing that we had three basic core values that we define whatever it takes. And I hope that as we move forward that you and your staffs will feel a difference because I can feel it among the staff where we have a renewed commitment not a new commitment but a renewed commitment to really doing whatever it takes to accomplish our mission, our multi-facetted mission. So, we want to be team players. That's sort of a term that is overused, but it's something that we found in looking internally that we had become very siloed like most bureaucracies do at some point in time, but we couldn't provide these kind of services in the world in which we are now living where we have multiple projects where we have new demands where we do have restricted budgets. We couldn't do that unless we tore down those silos and truly created a team approach and then focused on our positive customer service and care. And, once again, we define our customers as you, our cities, our counties, those who actually depend upon us to do the things we do and also the public who depends upon us every day to provide safe and secure services and that's seventy million riders a year. This is a constant challenge. This is a very complex operation. We have wins, we have some challenges, but we're always working at improving. In doing that we hope that we can engage this -- we can shift our gear in transition to kind of excellence that you expect and that the public expects and that we expect of ourselves. 5

12 So, I wanted to let you know that this is in full mode, and we are working to instill this from top to bottom in our organization. And if you experience good things that fit in with that, we'd love to know about that. If you experience times where we've sort of not lived up to these ideals and these commitments we've made, we want to know that too. We can only be better if there's an honest communication. And one of the things we have in here is open and honest communication among everybody. We have to be willing to listen and that means listening to the accolades and the successes but also listening when we drop the ball when we fall short. We can only get better if we know what we're doing. So, I just wanted to give you an update as to what we're doing, and you'll hear more about this. You'll see things around Valley Metro facilities and everything where you'll see the shifting gears, the transition to excellence, and little things as we do to remind ourselves and everyone who works here of what our goals and what our core values and what our aspirations are. So, we appreciate sharing that with you. The next thing is yesterday we were -- I was privileged to be invited to join the Governor's Office of Highway Safety Director Alberto Gutier, and he's met with a lot of different police officers, hundreds of police officers from around the state. I noticed I've never been in a place that I saw so many people with so many weapons, but I felt so safe. And just to remind people that, number one, as we come into this holiday season it's still a huge challenge for us in the community to take impaired drivers off the streets and make sure that they don't endanger our lives. A couple of interesting things that I noted from that is that for the first time this year drug impairment has actually surpassed alcohol impairment as the number one impairment which I was shocked to hear. And it's, you know, opioids, it's marijuana, it's those other things, and that's a real, real challenge for us. The other thing is that unlike 10 years ago there are a lot of options out there. Used to be, don't drink and drive. Now, with all the different services we have with the Ubers, the Lyfts, the taxi cabs, and we were there to show that public transportation is also one of the options that you now have. You are now able to take any form of public transportation. And while it doesn't take you to your doorstep, with the combination of shared-ride services you can go to whatever bus stop and go to whatever light rail platform and there can be an Uber or a Lyft or a taxi cab waiting there for you to take you home. As a matter of fact, we're going to highlight that, once again, for the fifth year in a row partnering with Miller Coors on the Coors Light Free Ride program where between 6

13 seven and closing on New Year's Eve we offer free rides on the light rail, and also there's a discounted Uber and Lyft service for many bus stops and for many light rail platforms. If you find yourself, you can get discounted fare on Uber. So it's a partnership with Miller Lite and with Crescent Crown, the local distributor here, so we thank you for that. If you wonder how successful it is, last year almost 25,000 people took advantage of the free rides, so it is very successful. It's not the only holiday thing we're doing. We've dressed up buses and trains with sort of a Polar Express theme. We appreciate our holiday ornaments inside throughout December. We find this is very positive and, you know, very popular effort that we have to sort of bring some cheer to the holidays. For the second year now we're proud to co-sponsor the Mesa Polar Express. Unbelievably successful last year. This year we're looking for even bigger things. And that is a special holiday train in Mesa Drive down through Merry Main Street, and Santa will be there and all the fixings, and it's just a fun time, a lot of elves and other things like that 6:00 to 10:00 p.m. on two weekends, the 8th and the 9th and the 15th and 16th of December. Bring your kids. It was fun last year. We actually had long lines at Mesa Drive. Whole families in pajamas and things like that. Yeah, they really got into the spirit. We did that without even really advertising it and we were overwhelmed. So, it shows you how we're trying to connect and tell people, you know, this is part of your community. The community has ownership in the transit system and one way that we can connect that. We hope that takes us through the holidays and that all of you and everyone has a safe and enjoyable holiday season. And we're going to do whatever we can to make sure that the hundreds of thousands and millions of people, I guess, that we transport every month will get there safely and securely and that we truly do enhance their lives while we connect communities. Thank you, Madam Chair. 3. Minutes Chair Klapp said the minutes from the October 19, 2017 Joint Board meeting have been presented for approval. May I have a motion, please? IT WAS MOVED BY COUNCILMEMBER WILLIAMS, SECONDED BY COUNCILMEMBER ORSBORN AND UNANIMOUSLY CARRIED TO APPROVE THE OCTOBER 19, 2017 JOINT BOARD MEETING MINUTES. 7

14 4. Public Comment on Agenda Action Items Chair Klapp said we'll move on to Public Comment. This is for all action agenda items on this agenda, and you have up to three minutes. So, we'll begin with Blue. Mr. Crowley said I'd like to have you just put into the record what I had to state at the manager's meeting and that I find that Mr. Coughlin's company is one that represents well. But what are their marching orders as to the federal contract? What is it that we're doing and for the amount of money that we're putting out there? Also, you do know that you can't use any federal money to pay this individual. And if you have convoluted your funds, you can get in trouble for that because the feds say you can't use their money to lobby them, so just something to give you a heads-up on there. And to the quarterly report, I see that on the buses it's all got compliance and it's ninety-nine, ninety-nine, ninety-nine. And then the rail has everything the same except for fare compliance. That's two pages later. Why isn't that with it the way it is? I also find that where you got criminal activity here, I asked the officer when I came in did he know about gateway crimes. And that's on page 6 that says criminal activity and then activity, and it's medical responses, warrants, and arrests, but right above that on that criminal activity it was gateway crimes on platform. There were 2,461. I did call and ask what do you mean by gateway crimes. And her answer she gave to the secretary who conveyed it to me, so it may be a little convoluted, is disorderly conduct, intoxication, and there was one other, but -- no. Not buying it. Not going there. Those Allied Burton people are not police officers. And gateway crime what is it a gateway to? And then to your report on the amount of moneys you're putting out there, on page 3 of it on 10/15/17 we have the name Wells Fargo. And it's credit card purchases for -- is that $29,000? Just a thought, what did you buy with a credit card and shouldn't that be there? 5. Consent Agenda Next on the agenda are the consent items and this is Item No. 5A and 5B that relate to the State Consulting Contracts and the Federal Government Relations Consulting Contracts. Do we have anyone who wants to remove anything from the consent agenda? Hearing none, can I get a motion to approve the consent agenda? IT WAS MOVED BY VICE MAYOR HARTKE, SECONDED BY VICE MAYOR ARREDONDO-SAVAGE AND UNANIMOUSLY CARRIED TO APPROVE THE CONSENT AGENDA. 8

15 Councilmember Williams said it's extremely important, I think, that we coordinate efforts amongst all the cities' lobbyists as well as ours. We all have the same goal, but I want to make sure we're all on the same page as we approach that goal. So, if you could see that that happens or encourage them to do so, I would appreciate it. Mr. Smith said Madam Chair, Councilmember Williams, that was part of the process to begin with. The cities were all involved in the federal one. The idea is that cities have their own federal lobbyists, and one of the reasons why we are getting our own so we can better coordinate. And as a matter of fact, the federal lobbyist is going to be in town next week, and one of the things we're doing is they're meeting with each of your staff to make sure that that coordination effort is complete and is consistent. Small world back there. They all know each other very well. And so we feel pretty good about where we are right now as far as the firm we picked. And they're very familiar with the city lobbyists that exist back in Washington already. Supervisor Gallardo said thank you, Madam Chair. And I'm pleased that our councilwoman brought that up because I was thinking the exact same thing. In Maricopa County we invest a lot in public relations. We have in-house folks and we also have contract. And I'd been at the Capitol. I know how important it is to have folks there on the ground every day. Things are moving so quickly. And so I'm okay with having folks representing the organization and being there, but I think it really is critical that we all kind of work together. Our, at least at the County level, we split it up where we have -- I have my own lunch with the Democrat side and my colleagues on the other side have it with the Republican side where we go down there. I think it's the first week of the legislative session we provide lunch, we bring members from the House and the Senate to talk about Maricopa County's legislative agenda and would be more than willing to bring in Valley Metro to talk about some of the great things that we're doing and this sort of stuff. I think it's real good to keep the members up apprised, and many may not even be too familiar with the inner workings of Valley Metro. You know, they ride the light rail and the buses as well, but they might not be as familiar with the organization, so it would be a good way for us to reach out to them and educate them. It's all about educating these law makers and making sure they understand what's happening. Mr. Smith said Supervisor Gallardo, I appreciate that. And we will take advantage of that. I find that when we talk about educating, you know, as I go around and I'm pretty active in speaking to valley groups and everything, business groups and others, and we have a lot of educating to do. It is -- I had learned some things after I came here. And one of them was the sheer coverage and the extent that transit has in this valley. I love to be up there when I show this slide that tells people what our ridership is because 9

16 usually what I hear from my legislators is I never see anyone on the buses; I never see anyone on the light rail. And you throw that slide out that shows that we have 70 million riders a year that every day we basically carry a sold-out Sun Devil Stadium on our light rail. You know, those are numbers that most people are completely unaware of that every day there's 250,000 people that commute to school, work, play using public transportation in this valley and that between the City of Phoenix and Valley Metro we run over 30,000 bus routes every week. It is a very large and complex operation that touches every part of this valley. We wish it would touch more. We wish we had the resources to be more frequent and to have better coverage. That's the kind of information, though, that is a real eye-opener, especially to those who -- and there's a lot in our leadership that don't look kindly on public transportation because they -- one of the reasons is because they don't realize how significant the impact is and how deep the impact is. And so, any opportunity we can have to talk to our -- certainly, our legislators and anyone in your community I would welcome that. And, please, reach out, invite us. We have a nice little presentation. It's about twenty minutes long. And I've done it for several of you and have done it for different groups. It's a really nice PowerPoint where we can hand it out that we give that really we find people's attitudes are changed after we give them this quick overview of what transit means and what Valley Metro and the City of Phoenix do to provide transit services in the valley. So, we'd welcome any opportunity: one on one, one on a hundred. We'll be there. Supervisor Gallardo said and along that note, I think we had a discussion at the County just with Visit Phoenix and how important it is to have such a reliable transportation service in the city. When you're talking about bringing in conventions to the city or even big sporting events, I mean, they look at stuff like that, and it goes a long way so as we continue to educate. I was there at the Capitol when we had the big fight and one of the comments that had been made we proved them wrong in terms of how this has all developed. I think we've done a great job in moving transportation forward in the Valley. But I think it's important to continue to toot our horn and tell our stories. And, you know, the facts speak for themselves in terms of the ridership and how important it is for us to have such a vibrant transportation system to bring down those sporting events, bring down those conventions. And it's just a big plus, and I think it's important for us to continue with those. 10

17 Mr. Smith said it is. And the other thing, too, is that the conversation now -- and we are in the midst of a giant shift in discussion of transportation in our Valley. You know, back in the early, mid-eighties, it was about freeways we didn't have them. As we went forward under Prop 300 for 20 years we built a lot of freeways. We didn't build all of them because we got hit with the recession in the late eighties. Prop 400 comes along and it's let's finish the freeways. Oh, and, by the way, let's now start funding transit. A very, very, you know, tough political discussion but we got over the hump, and we built light rail and we expanded bus service and we started funding regional bus services, but there's no one around here who would admit that we have the coverage or the frequency that we truly need to have a transit system. The reality is that over the next 15, 20 years we're going to add over a million people to this Valley. And there are not a whole lot of new freeways we're going to build inside the loops. And, yet, a lot of those people are going to either live inside the loops or they're going to certainly travel inside. And public transportation is going to play a major role. And there's no doubt that we are not fully equipped for that. You also bring in the discussion on alternative vehicles and driverless vehicles and electric vehicles and all those things and there's some legitimate questions, and the discussion is how will this play out. We need to start having that conversation now so that we can have those kind of discussions with people who understand what is out there. And we understand our freeways. We drive them. We've done -- this region has done an incredible job of building freeways. We have a long way to go in building transit because most people don't fully understand transit. We've seen what an additional investment in transit can mean already in Phoenix. We've expanded -- through the T2050, we've expanded frequency, which is the key. We've expanded coverage as far as hours. And in those cases we've seen a marked increase in ridership and in use of our transit. We've seen what happens with light rail. So, you know, I'm sort of soapboxing it now, but this is going to be a long-term discussion of which everyone in this room in your cities you're going to have it. It's already happened in certain communities as to what the future of transit is going to be. It's not the last time that's going to happen. It's going to happen time and time again, especially as we move forward to the expiration of Prop 400 in 2025 and what will be the replacement, how will we continue to invest. Because as -- I just don't want to remind you -- well, yes, I do want to remind you. Most of the transit funding outside of light rail is a big chunk of it is funded by Prop 400 regional funds and those expire on December 31,

18 There has to be some sort of a replacement or else transit as we see it now outside of the City of Phoenix will change drastically and the cities of Tempe and a little bit in Glendale and Mesa will change dramatically. And even in those cities it will change dramatically because of that half-cent -- that portion of the half-cent sales tax which is dedicated to bus and other transit will go away. So, we'll continue to have this conversation and do it in a way that hopefully by the time we have to make some very difficult policy decisions people understand how multimodal truly works. Enough of my soapbox. You can have the meeting back, Madam Chair. 6. Executive Session Chair Klapp said the next item on the agenda is an Executive Session which we do need today. This is to involve discussion and consultation regarding an employment contract matter concerning the Chief Executive Officer. So, can I have a motion for moving to Exec Session? IT WAS MOVED BY COUNCILMEMBER TOLMACHOFF, SECONDED BY VICE MAYOR EDWARDS AND UNANIMOUSLY CARRIED TO ADJOURN TO EXECUTIVE SESSION. The regular session adjourned at 11:45 a.m. The regular session reconvened at 1:28 p.m. 7. Executive Session Action Items Chair Klapp called the regular session back to order. This is the Joint Board Meeting. And we'll start with if there are any comments related to the Executive Session. I will call on Councilmember Williams. Councilmember Williams said I have a statement I want to read. Mr. Smith has served Valley Metro as a permanent CEO under a two-year employment contract. This month we commemorate Mr. Smith's one-year anniversary serving as the CEO. We have had the pleasure of working with him on a wide variety of complex issues and business matters as we expand our public transportation system, help build our communities and drive our economy. He has demonstrated the ability to manage every aspect of the organization. Under his leadership Valley Metro has restored fiscal responsibility, increased customer service satisfaction, addressed issues related to safety and security, and increased regional understanding of the importance of transit. 12

19 Mr. Smith has an open, honest, and collaborative management style that gives us confidence in the future of Valley Metro. He offers the leadership this organization needs, and we are happy he will continue to lead us in the future. Having said that, I think I need to call the members of Valley Metro; is that correct? Councilmember Williams said we need separate motions. So, only the members serving on the Valley Metro may participate in this, and I would like to -- we have a motion. IT WAS MOVED BY COUNCILMEMBER TOLMACHOFF, SECONDED BY VICE MAYOR ROBIN ARREDONDO-SAVAGE AND UNANIMOUSLY CARRIED TO NUMBER ONE, GRANT A MERIT INCREASE TO THE CEO OF 3 PERCENT EFFECTIVE JULY 1, 2017, AND, NUMBER TWO, TO AUTHORIZE MR. MINNAUGH TO FINALIZE AN AGREEMENT WITH MR. SMITH EXTENDING HIS EMPLOYMENT CONTRACT AS CEO FOR AN ADDITIONAL TWO YEARS BEGINNING NOVEMBER 2018 CONSISTENT WITH THE DIRECTION PROVIDED TO MR. MINNAUGH, AND FOR CHAIRMAN GLOVER TO SIGN ON BEHALF OF THE BOARD. Chair Klapp said I'd like to call on Councilmember Eric Orsborn to read a motion from the RPTA Board. IT WAS MOVED BY COUNCILMEMBER ORSBORN, SECONDED BY COUNCILMEMBER TOLMACHOFF AND UNANIMOUSLY CARRIED TO ADOPT THE RECOMMENDATIONS AND MOTION MADE AND APPROVED BY VALLEY METRO RAIL BOARD AND AUTHORIZE MR. MINNAUGH TO FINALIZE AN AGREEMENT CONSISTENT WITH THESE TERMS AND CHAIRWOMAN KLAPP TO SIGN ON BEHALF OF THE BOARD. Mr. Smith said thank you to the Boards to all of you. I appreciate it. It's been a great experience working with you, and I look forward to continuing and doing some great things in the months and years to come ahead. So, thank you very much. 8. Quarterly Reports Chair Klapp said we'll move on to the next item Fiscal Year 2017 Quarterly Reports. This item is presented for information only. Are there any questions related to this item? Hearing none we will move on to Item Travel, Expenditures and Solicitations Okay. We'll move to Item No. 9 Travel Expenditures and Solicitations. This item is also presented for information only. Are there any questions related to this item? 13

20 Hearing none we will move on. 10. Future Agenda Items Request and Update on Current Events Chair Klapp said are there any requests or comments to be made by anybody on the Board? Okay. I would like to make one comment. This relates somewhat to some things that were said earlier by our CEO, Mr. Smith, related to you got to start thinking of other ways to handle transportation issues in the future. And, as you all know, we do not have light rail in Scottsdale. And one of the big issues in the discussions related to light rail in the past has been consternation about how to get travelers into the city from Sky Harbor Airport. So, last Tuesday we authorized a test program. We do have limited funds. So, this is a test program to determine if this is a viable alternative and that would be to have a program for visitors who come into Sky Harbor. We will provide them with, you could call them a voucher, it is partial payment. It's a very deeply discounted payment to Uber to bring those people from Sky Harbor Airport to any one of our hotels in Scottsdale. This is all handled in the spirit of increasing tourism in Scottsdale and is being paid for through our hotel bed tax dollars. So, I think it's a good alternative program for us to look at to try to capitalize on the fact that there are ride-sharing programs available and to be able to offer something to tourists in the City of Scottsdale. They will have a ride from the airport. And when they leave they will have a ride back to the airport from their hotel. I think it's kind of an interesting thing. We'll see how it works out. That's all I have to announce. With no further discussion the meeting adjourned at 1:35 p.m. 14

21 Information Summary DATE AGENDA ITEM 4 January 11, 2018 SUBJECT Public Comment on Agenda Action Items PURPOSE The public will be provided with an opportunity at this time to address the Boards of Directors on all action agenda items. Up to three minutes will be provided per speaker to address all agenda items unless the Chair allows more at his/her discretion. A total of 15 minutes for all speakers will be provided. BACKGROUND DISCUSSION CONSIDERATION COST AND BUDGET COMMITTEE PROCESS RECOMMENDATION This item is presented for information only. CONTACT Scott Smith Chief Executive Officer ssmith@valleymetro.org ATTACHMENT Valley Metro I 101 N. 1st Ave. Phoenix, AZ

22 Information Summary DATE AGENDA ITEM 5 January 11, 2018 SUBJECT Executive Session PURPOSE The Boards may vote to enter Executive Session for discussion or consultation for legal advice with the attorney or attorneys of the public body and to consider its position and instruct its attorneys regarding the public body s position regarding personnel matters and contracts that are the subject of negotiations, in pending or contemplated litigation or in settlement discussions conducted in order to avoid or resolve litigation; all as authorized by A.R.S. Sections A.1, A.3., and A.4. The agenda for Executive Session involves discussion and consultation regarding employment contract matters concerning the Chief Executive Officer. Discussion and consultation may be both with and without the Chief Executive Officer in attendance. BACKGROUND DISCUSSION CONSIDERATION COST AND BUDGET COMMITTEE PROCESS RECOMMENDATION The Board may vote to enter Executive Session. CONTACT Michael Minnaugh General Counsel mminnaugh@valleymetro.org ATTACHMENT VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

23 Information Summary DATE AGENDA ITEM 6 January 11, 2018 SUBJECT Executive Session Action Items PURPOSE The Board may take action related to items discussed as part of the Agenda Item 6. BACKGROUND DISCUSSION CONSIDERATION COST AND BUDGET COMMITTEE PROCESS RECOMMENDATION The Board may take action related to the items discussed as part of Agenda Item 6. CONTACT Michael Minnaugh General Counsel mminnaugh@valleymetro.org ATTACHMENT VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

24 Information Summary DATE AGENDA ITEM 7 January 11, 2018 SUBJECT Chief Executive Officer Goals and Objectives January - June 2018 PURPOSE To request appoval of the Chief Executive Officer (CEO) goals and objectives for January June BACKGROUND DISCUSSION CONSIDERATION At the November 2017 Board meeting it was determined that goals for January June 2018 should be developed and reviewed by the Joint Board Subcommittee. Board members were asked to submit suggestions for goals and objectives and submissions were received from the cities of Avondale, Phoenix and Mesa. The Joint Board Subcommittee met on December 20, 2017 to review and develop goals and objectives for January June The subcommittee agreed to six areas of focus for the CEO that are outlined in the attached memo. More detailed goals and objectives will be developed for Fiscal Year COST AND BUDGET COMMITTEE PROCESS Joint Board Subcommittee: December 20, 2017 RECOMMENDATION The Joint Board Subcommittees recommends that the CEO goals and objectives for January June 2018 be accepted and approved by the Boards of Directors. CONTACT Scott Smith Chief Executive Officer ssmith@valleymetro.org ATTACHMENT Goals and Objectives for Six Months Jan-Jun 2018 Memorandum Valley Metro I 101 N. 1st Ave. Phoenix, AZ

25 To: From: Valley Metro Joint Board Sub-Committee Scott Smith, CEO Date: December 20, 2017 Re: Goals and Objectives for Six Months Jan-Jun 2018 During the first six months of 2018, I plan to build upon the initiatives and foundation laid during the past year as Valley Metro CEO. These initiatives are based on four priorities: Safety and Security, Staff Development, Operational Performance, and Communication Clarity. I will work on accomplishing or moving forward with the following goals and objectives: 1. Respect the Ride. Complete physical work on light rail platforms to include Paid Fare Zone indicators and signage to better communicate new Code of Conduct. Roll out public information campaign on Respect the Ride and new Code of Conduct. Manage, monitor and evaluate initial communication, education and enforcement efforts and adjust as necessary. 2. Shifting Gears. Work to implement new Transition to Excellence program among all Valley Metro departments and staff. Begin training on Core Values in each department. Adjust hiring process to emphasize cultural and value fits and revise new hire orientation to teach and emphasize core purpose and values. Work to make Shifting Gears an integral part of our agency culture. 3. Staff Development. Finalize hiring of Director of Training and Staff Development. Begin design of training and educational program keyed to core values, technical competency, leadership development, and personal improvement. Begin participation in EnoMAX Group Leadership Development program with LA METRO, Seattle Sound Transit, Denver RTD, Dallas DART and Atlanta MARTA. 4. Communication. Establish and implement an improved and formalized communication program with board members, city staff, and inter-governmental representatives from the 18 cities/towns and Maricopa County that make up the Valley Metro boards. Schedule and begin regular periodic update meetings with each board member and staff. 5. Operations. Monitor paratransit, bus and light rail management contracts to insure performance measurement expectations continue to be met while working with city and Valley Metro staff to develop operational and budget plan. Propose budget to cities and county that reflects the changing landscape of paratransit services. 6. Long-Term Transit Planning and Finance (Prop 500). Work with business organizations, citizen groups, the media, and government leaders and staff to educate and advocate for transit as an integral part of our region s multi-modal transportation system. Speak to as many community groups, clubs and organizations educating them on Valley Metro, our mission and operations. Consult with city, regional, county, state and federal leaders and staff regarding transit planning and funding alternatives. Work with relevant parties to help define transit options, programs and projects to be included in regional plans that would eventually be presented to county voters, commonly referred to as Prop 500. Valley Metro I 101 N. 1st Ave. Phoenix, AZ

26 Information Summary DATE AGENDA ITEM 8 January 11, 2018 SUBJECT Travel, Expenditures and Solicitations PURPOSE The monthly travel, expenditures and solicitations are presented for information. BACKGROUND DISCUSSION CONSIDERATION COST AND BUDGET COMMITTEE PROCESS RECOMMENDATION This item is presented for information only. CONTACT Paul Hodgins Chief Financial Officer phodgins@valleymetro.org ATTACHMENTS Valley Metro Travel Reimbursement Report Valley Metro RPTA and Valley Metro Rail Monthly Accounts Payable over $25,000 Active Requests for Proposals, Qualifications and Invitations for Bids Valley Metro I 101 N. 1st Ave. Phoenix, AZ

27 Job Title Purpose of Travel Location Dates Traveled Project Manager Sr. Project Certification Coordinator Report reflects Out of State (AZ) Travel 1 Parking 2 Fuel for Rental Car Valley Metro Travel Reimbursement Report For Travel Completion Dates 11/26/17 through 12/25/17 Total Travel Cost Airfare Other Transport Lodging Meals Misc. NTI Environmental Review Fort Worth, TX 11/27/17-12/2/17 $ $ $81.21 $ $ $0.00 SMS Principals of Transit Training Orange County, CA 12/12/17-12/16/17 $1, $ $99.34 $ $ $ ,2

28 Valley Metro Regional Public Transportation Authority Monthly AP Payments over $25,000 November 21, 2017 to December 20, 2017 Document Number Name Transaction Description Effective Date Transaction Amount W001 FirstGroup America, Inc. Oct Fixed Route Bus Service-Unification 11/30/2017 5,432, W005 Scheidt & Bachmann Sept 2017 Fare Box Upgrade 12/14/ , R W ADP PPE Wages Payable - Reverse Wire 12/8/ , W ADP PPE Wages Payable - Reverse Wire 11/24/ , W008 United Healthcare Dec 2017 Dental, Medical and Vision Coverage 12/14/ , R W ADP PPE Federal, State, SS/Med EE/ER Tax - ACH 12/8/ , W ADP PPE Federal, State, SS/Med EE/ER Tax-ACH 11/24/ , En Pointe Technologies Microsft EA Agreement Software 11/22/ , Creative Bus Sales Inc Startrans President S2 Shuttle White 12/20/ , Creative Bus Sales Inc Startrans President S2 Shuttle White 12/20/ , Creative Bus Sales Inc Startrans President S2 Shuttle White 12/20/ , Creative Bus Sales Inc Startrans President S2 Shuttle White 12/20/ , R W005 Total Transit Enterprises, LLC Oct Zoom (Avondale) Bus Run South 12/7/ , Stevens Leinweber Construction, Inc. 9th FL Suite Remodel 11/22/ , R W001 ASRS PPE ASRS Contribution Employee 12/8/ , R W001 ASRS PPE ASRS Contributions Employer 12/8/ , W001 ASRS PPE ASRS Contributions Employee 11/24/ , W001 ASRS PPE ASRS Contributions Employer 11/24/ , R W005 Total Transit Enterprises, LLC Oct Vee Quiva Bus Run 12/7/ , R W005 Total Transit Enterprises, LLC Oct Glendale Express Bus Run/Maintenance 12/7/ , Trapeze Software Group 7/1/2017-6/30/2018 Trapeze ATIS AGENT 11/22/ , R W002 City of Mesa November 2017 Utilities 11/30/ , W005 Second Generation, Inc. dba Ajo Transportation Oct Rural Connector Route-Ajo Transportation 11/22/ , W006 Second Generation, Inc. dba Ajo Transportation Nov 2017 Ajo Rual Connector Route 12/14/ , W002 CopperPoint Mutual Insurance Company Jan 2017 Mobility Center/ Call Center Rent 12/14/ , W003 CopperPoint Mutual Insurance Company Dec Rent Call Center/Mobility Center 11/22/ , Moses, Inc. Nov 2017 Marketing and Advertising 12/13/ , Creative Bus Sales Inc Ford Transit Van Silver 11/28/ , Creative Bus Sales Inc Ford Transit Van Silver 11/28/ , Creative Bus Sales Inc Ford Transit Van Silver 12/20/ , Creative Bus Sales Inc Ford Transit Van Silver 11/28/ , C.A.R.E Evaluators, Inc. Oct 2017 Paratransit Evaluation Costs 12/13/ ,500.91

29 37704 C.A.R.E Evaluators, Inc. Sept 2017 Paratransit Evaluation Costs 12/6/ , W003 Creative Software Solutions/MJM Oct 2017 Taxi Trips Final Billing 12/14/ , Wells Fargo November 2017 Wells Fargo Credit Card Purchases 12/15/ , W004 Creative Software Solutions/MJM 10/1/17-10/15/17 Estimated Taxi Trips 11/22/ , Knowledge Services Nov 2017 IT Services Consultant 12/6/ , Knowledge Services Oct 2017 IT Service Consultant 12/6/ , Arizona Center for Disability Law Wanger Settlement Agreement 12/20/ , ASRS S Banta - Contribution Not Withheld for Deferred Compensation p 12/13/ , R W009 SRP November 2017 Utilities 11/30/ , Total 10,242,396.00

30 Document Number Name Valley Metro Rail, Inc. Monthly AP Payments over $25,000 November 21, 2017 to December 20, 2017 Transaction Description Effective Date Transaction V W006 Stacy and Witbeck-Sundt JV GRE Oct Gilbert Road Light Rail Extension 12/7/2017 4,133, V W AECOM Technical Services September 2017 South Central LRT Extension 12/7/2017 1,379, V W005 Stacy and Witbeck 50th St/Tempe SC Sept Tempe Streetcar Project 12/7/2017 1,092, W001 HDR/SR Beard & Associates Sept Planning and Community Support Services 11/30/ , V W001 Alternate Concepts Inc. Oct Transportation Services 12/7/ , Stantec Consulting Services, Inc. Oct Tempe Streetcar Design Services 12/13/ , W Allied Universal Security Services Oct 2017 Fare Inspection and Security Services 11/22/ , V W APS Nov 2017 Utilities 11/30/ , V W002 Kiewit Infrastructure West Co. 7/20-10/31/17 South Central Extension Preconstruction 12/14/ , W001 City of Mesa Sept 2017 Gilbert Rd Extension Costs 11/22/ , V W005 Stacy and Witbeck 50th St/Tempe SC Oct th Street Station 12/7/ , W001 City of Mesa Oct 2017 Gilbert Rd Extension Costs 11/22/ , Hill International, Inc. Sept 2017 Task 2 Tempe SC Program Management 11/28/ , SRP Miscellaneous Accts Receivable Oct Gilbert Rd Extension Utilities 12/6/ , Hill International, Inc. August 2017 Tempe Streetcar PMCM Services 12/13/ , V W004 PB-Wong Joint Venture Oct TO 19 Proj. Mngt Const. Mngt 12/14/ , Hill International, Inc. Sept 2017 Task 3 S Central Program Management 11/28/ , Hill International, Inc. August 2017 FY 2017 Program Management 12/13/ , V W020 SRP Nov 2017 Utilities 11/30/ , V W001 Jacobs Engineering Oct Gilbert Rd Extension Design Svcs 12/14/ , Hill International, Inc. Aug FY 2017 Program Management 12/13/ , Hill International, Inc. Sept 2017 Task 4 Program Management 11/28/ , Hill International, Inc. October 2017 FY 2017 Program Management 12/13/ , Dellner Couplers, Inc. Oct-Nov LRV Coupler Overhaul 12/13/ , Qognify Inc. Expert Support, Travel Expenses 11/21/ , City of Phoenix Nov Fare Handling Fee 12/6/ , V W004 City of Mesa Nov 2017 Utilities 11/30/ , United Right-of-Way Oct Facilities Landskeeping Services 12/6/ , W ARCADIS Oct 2017 Task 14 Consulting Support Services 11/30/ , Hill International, Inc. Oct th St Station PMCM Services 12/6/ , Hill International, Inc. Aug th St Station PMCM Services 12/13/ , W ARCADIS Oct 2017 Task 7A Consulting Support Services 11/30/ , V W Award Winning Restorations Repair of Train 105 Due to Accident 12/14/ , Suns Legacy Partners, LLC Valley Metro Phoenix Suns Sponsorship bill 2 of 3 11/21/ , W ARCADIS Oct 2017 Task 7 Consulting Support Services 11/30/ , ,709, Amount

31 Valley Metro Monthly RTAG Solicitation Update ACTIVE SOLICITATIONS Solicitation Type Solicitation Title Release Date Proposal Due Date Targeted Board Award Date RFP Marketing Materials Storage & Delivery Service 10/10/ /2/2017 1/18/2018 RFQ Northwest Extension Design - Reissue 9/29/ /21/2017 2/15/2018 RFQ/RFP OMC Expansion - 2 step Design/Build 10/19/2017 3/21/2018 6/21/2018 IFB Mobile Sand Filling Machine 11/30/ /18/2017 1/18/2018 UPCOMING SOLICITATIONS Solicitation Type Solicitation Title Release Date Proposal Due Date Targeted Board Award Date RFP ADA Paratransit Eligibility Certification and Travel Training Services Dec-17 2/1/2018 4/19/2018 RFP CARE Evaluation Dec-17 2/1/2018 5/17/2018 IFB Station Sails TBD TBD TBD IFB HVAC TBD TBD TBD IFB LRV Friction Brakes TBD TBD TBD RFQ Downtown LRTConnection - Public Art 1st Qtr 18 TBD TBD RFP Off-Site Records Storage TBD TBD TBD RFP Copiers TBD TBD TBD

32 Information Summary DATE AGENDA ITEM 9 January 11, 2018 SUBJECT Future Agenda Items Request and Report on Current Events PURPOSE Chairs Klapp and Glover will request future agenda items from members, and members may provide a report on current events. BACKGROUND DISCUSSION CONSIDERATION COST AND BUDGET COMMITTEE PROCESS RECOMMENDATION This item is presented for information only. CONTACT Scott Smith Chief Executive Officer ssmith@valleymetro.org ATTACHMENT. Pending Items Request Item Requested Date Requested Planned Follow-up Date Valley Metro I 101 N. 1st Ave. Phoenix, AZ

33 Agenda January 11, 2018 Board of Directors Thursday, January 18, 2018 Lake Powell Conference Room 101 N. 1st Avenue, 10 th Floor 11:15 a.m. 1. Public Comment on Agenda Action Items (blue card) The public will be provided with an opportunity at this time to address the Board on all action agenda items. Up to three minutes will be provided per speaker to address all agenda items unless the Chair allows more at his/her discretion. A total of 15 minutes for all speakers will be provided. 2. Minutes Action Recommended 1. For Information 2. For action Minutes from the November 30, 2017 are presented for approval. CONSENT AGENDA 3A. Intergovernmental Agreement (IGA) with the Arizona Department of Transportation (ADOT) 3A. For action Staff recommends that the Board of Directors authorize the CEO to enter into an IGA with ADOT for FTA Section 5311 (Rural Transit) pass-through funding for Rural Route 685 for FFY19 and FFY20. 3B. Intergovernmental Agreements (IGAs) with the City of Phoenix for Federal Transit Administration Pass- Through Grants 3B. For action Staff recommends that the Board of Directors authorize the CEO to execute the IGAs and change order with the City of Phoenix for the listed grants. Valley Metro I 101 N. 1st Ave. Phoenix, AZ

34 3C. Recommended April 2018 Valley Metro Transit Service Changes 3C. For action Staff recommends that the Board of Directors authorize the CEO to amend member agency FY18 Intergovernmental Agreements as necessary to accommodate the recommended April 2018 service changes. 3D. Workers Compensation and Employer s Liability Insurance Coverage Renewal 3D. For action Staff recommends that the Board of Directors authorize the CEO to renew the workers compensation and employer s liability insurance coverage for a one-year period with CopperPoint Mutual Insurance Company for an amount not to exceed $161,166. 3E. Portable Vehicle Maintenance Lifts Contract Award 3E. For action Staff recommends that the Board of Directors authorize the CEO to award a contract for the purchase and installation of portable vehicle maintenance lifts through a cooperative agreement with Southwest Lift under an Arizona State Contract in an amount not to exceed $138,000 and to establish a 10% contract change contingency of $13,800 that is included in the overall budget. 3F. Contract Award for the Manufacture and Delivery of Medium Duty Transit Buses 3F. For action Staff recommends that the Board of Directors authorize the CEO to execute a contract through a State of Arizona cooperative purchasing agreement with Creative Bus Sales for the manufacture and delivery of three medium duty 30 transit buses for Route 685 for a not-to-exceed amount of $582,503. 2

35 3G. Mesa Bus Operations and Maintenance Facility Improvements Contracts Awards 3G. For action Staff recommends that the Board of Directors authorize the CEO to award contracts for facility improvements at the Mesa Bus Operations and Maintenance Facility through cooperative agreements under Arizona State Contracts in an amount not to exceed $227,150 and to establish a 10% contract change contingency of $22,715 that is included in the overall budget. REGULAR AGENDA 4. RPTA Fiscal Year 2018 (FY18) Mid-Year Budget Adjustment 4. For action Scott Smith, CEO, will introduce Paul Hodgins, Chief Financial Officer, who will provide an overview of the midyear budget adjustment and request the Board of Directors authorize the Mid-Year Budget Adjustment update to the Valley Metro RPTA Operating and Capital Budget for FY Future Agenda Items Request and Report on Current Events 5. For information Chair Klapp will request future agenda items from members, and members may provide a report on current events. 6. Next Meeting 6. For information The next meeting of the Board is scheduled for Thursday, February 22, 2018 at 12:15 p.m. Qualified sign language interpreters are available with 72 hours notice. Materials in alternative formats (large print, audiocassette, or computer diskette) are available upon request. For further information, please call Valley Metro at or TTY at To attend this meeting via teleconference, contact the receptionist at for the dial-in-information. The supporting information for this agenda can be found on our web site at 3

36 Information Summary DATE AGENDA ITEM 1 January 11, 2018 SUBJECT Public Comment on Agenda Action Items PURPOSE The public will be provided with an opportunity at this time to address the Board on all action agenda items. Up to three minutes will be provided per speaker to address all agenda items unless the Chair allows more at his/her discretion. A total of 15 minutes for all speakers will be provided. BACKGROUND DISCUSSION CONSIDERATION COST AND BUDGET COMMITTEE PROCESS RECOMMENDATION This item is presented for information. CONTACT Scott Smith Chief Executive Officer ssmith@valleymetro.org ATTACHMENT Valley Metro I 101 N. 1st Ave. Phoenix, AZ

37 Minutes January 11, 2018 AGENDA ITEM 2 Board of Directors Thursday, November 30, 2017 Lake Powell Conference Room 101 N. 1st Avenue, 10 th Floor 11:15 a.m. RPTA Meeting Participants Councilmember Suzanne Klapp, City of Scottsdale (Chair) Councilmember Lauren Tolmachoff, City of Glendale (Vice Chair) Vice Mayor Kevin Hartke, City of Chandler (Treasurer) Councilmember Pat Dennis, City of Avondale - (phone) Councilmember Eric Orsborn, City of Buckeye Vice Mayor Bob Jones, City of El Mirage Councilmember Brigette Peterson, Town of Gilbert - (phone) Councilmember Bill Stipp, City of Goodyear Supervisor Steve Gallardo, Maricopa County Vice Mayor Jon Edwards, City of Peoria Councilmember Thelda Williams, City of Phoenix Councilmember Skip Hall, City of Surprise Vice Mayor Robin Arredondo-Savage, City of Tempe Mayor Everett Sickles, Town of Wickenburg Mayor Michael LeVault, Town of Youngtown Members not present Councilmember Linda Laborin, City of Tolleson Councilmember Chris Glover, City of Mesa Chair Klapp called the meeting to order at 11:17 a.m. We are going to begin first with the RPTA Board meeting and then go to the joint meeting instead of the reverse. These are RPTA. Okay. So, we'll begin by welcoming the vice mayor from El Mirage, Bob Jones. Welcome to the meeting. And we also have representing Mesa today on the Valley Metro Rail Board is Scott Butler. So, let's begin with the Pledge of Allegiance. (The Pledge was recited.) Valley Metro I 101 N. 1st Ave. Phoenix, AZ

38 1. Public Comment on Agenda Action Items Chair Klapp said the first item on the agenda is public comment on agenda action items. Ms. Kollock. Ms. Kollock said the main thing I want to do is very selfish. I'd like you to correct my name. My last name is K-O-L-L-O-C-K. There's no "R" and no "H" in it. Every time I come up here and speak my name gets spelled wrong. Thank you. Chair Klapp said we're sorry for that. We'll change it. Blue. Mr. Crowley said on my dissertation in there, you know, it's bad enough that I'm not quoted exactly and that somebody then interprets it, but the problem I had was where I pointed out that after ten minutes in direct sunlight at 117 in the shade it becomes medical. And then I said which then can lead to death. And the way you have in it here is I said that after ten minutes you can die. That's not the way I said it. I said this is where it starts, you know, when all of us are watching that UV index that would be the case. Now, also in there I pointed out the differences of people and what they considered to be bad behavior. Now, I would have knelt for the pledge, but I had to help her up, so when you have in your document -- and I love that in the minutes the amount of dissertation that Mr. Smith and Adrian had to say covered only thirty-one pages. And some of it I found to be more than interesting, but my favorite thing is that you have a listing now for gateway crimes in what you're having us look at further, and I'll be bringing that up at a proper time. But, as I said, I don't want it to show that I just said that in ten minutes you can die when you're out there. But I also -- and if you'll look at that further, I pointed out to y'all that when you are kicking somebody off for riding all day in the middle of the summertime that that's a negativity from yourselves. And the way it says it in there it makes it look like I was not quite the sanest, so, it's unfortunate that we don't do them exact because then you could really see how stupid I sometimes sound, but thank you for the giggle ladies. But, one, K-O-L-L-O-C-K, and it was on the card she turned in, you know, just a thought. Get her name right. Thank you. 2. Minutes Chair Klapp said the minutes from the October 19, 2017 Board meeting are presented for approval. 2

39 IT WAS MOVED BY COUNCILMEMBER TOLMACHOFF, SECONDED BY VICE MAYOR HARTKE AND UNANIMOUSLY CARRIED TO APPROVE THE OCTOBER 19, 2017 BOARD MEETING MINUTES. Chair Klapp said so, we have everyone here. Pat Dennis and Bridgett Peterson are on the line. 3. Future agenda item Requests and Update on Current Events Chair Klapp said the next agenda item is if anyone here has any future agenda items they would like to add, or do you have a report on any current events you'd like to provide to us. Seeing nothing, then I will move to the next item which is to remind you that the next meeting Thursday, January 18 at 11:15 a.m. With no further discussion the meeting adjourned at 11:23 a.m. 3

40 Information Summary DATE January 11, 2018 AGENDA ITEM 3A SUBJECT Intergovernmental Agreement (IGA) with the Arizona Department of Transportation (ADOT) PURPOSE To request authorization for the Chief Executive Officer (CEO) to enter into an IGA with ADOT for Section 5311 (Rural Transit) pass-through funding for Rural Route 685 for Federal Fiscal Year 2019 (FFY19) and 2020 (FFY20). BACKGROUND DISCUSSION CONSIDERATION Valley Metro staff will apply for an estimated $1,215,163 of FTA Formula Grants for Other than Urbanized Areas (Section 5311) funds for the FFYs starting October 2018 through September 2019 and October 2019 through September ADOT s application process includes two years of funding. The application will include administrative, preventive maintenance, and operating assistance for Route 685 Gila Bend and operating assistance and preventive maintenance for shortened round trips between the Buckeye Community Center and the Buckeye Municipal Court. No PTF funds are used for the shortened trips. The application will also include acquisition of mobile lift equipment for bus maintenance in FFY19. ADOT is the designated recipient for FTA 5311 rural formula grant funds for the state and Valley Metro must submit an application to receive this funding for the service identified above. ADOT s application process requires submittal of an IGA for funding and it must be signed by Valley Metro for the application to be accepted. Upon award, ADOT finalizes the IGA with the awarded amount. Valley Metro will hold a public event in the project area about the requested funding prior to award of any funds. ADOT requires all applicants for FTA 5311 funding to hold a public event to satisfy FTA s requirement to receive federal funds. COST AND BUDGET The funding from ADOT for Section 5311 for FFY19 and FFY20 is estimated to be $1,215,163. The following table summarizes funding sources and approximate amounts applicable to this Board action. Valley Metro I 101 N. 1st Ave. Phoenix, AZ

41 Funding Source FFY19 FFY20 Total FTA Section 5311 (ADOT) $616,869 $598,294 $1,215,163 PTF (Local Match) $271,606 $270,485 $542,091 Maricopa County - Arizona Lottery Funds (Local Match) $29,649 $30,539 $60,188 City of Buckeye (Local Match) $34,944 $35,992 $70,935 Total IGA Amount $953,068 $935,310 $1,888,377 Route 685 is in the Valley Metro budget and is programmed in the Transit Life Cycle Program (TLCP) with Public Transportation Funds (PTF) and Maricopa County Arizona Lottery Funds, which serve as the required sources of local match funds. Local match funds for the shortened round trips are provided by the City of Buckeye. COMMITTEE PROCESS RTAG: December 19, 2017 for information TMC: January 3, 2018 approved Board: January 18, 2018 for action STRATEGIC PLAN ALIGNMENT This item relates to the following goals and strategies in the Five-Year Strategic Plan, FY : Goal 4: Focus on economic development, regional competitiveness and financial resources. o Tactic B: Pursue all available funding opportunities for transit projects and services. RECOMMENDATION Staff recommends that the Board of Directors authorize the CEO to enter into an IGA with ADOT for FTA Section 5311 (Rural Transit) pass-through funding for Rural Route 685 for FFY19 and FFY20. CONTACT Wulf Grote, P.E. Director, Capital and Service Development wgrote@valleymetro.org ATTACHMENT

42 Information Summary DATE January 11, 2018 AGENDA ITEM 3B SUBJECT Intergovernmental Agreements (IGAs) with the City of Phoenix for Federal Transit Administration Pass-Through Grants PURPOSE To request authorization for the Chief Executive Officer (CEO) to execute IGAs with the City of Phoenix to allow Valley Metro to be reimbursed for eligible activities. BACKGROUND DISCUSSION CONSIDERATION Valley Metro is being provided federal funds through the Federal Transit Administration (FTA) from six grant programs. The table below summarizes the funding available: Grant FTA Program Federal Share Local Share Total 2017-xxx 5307 Formula $28,817,725 $6,656,584 $35,474, Formula (FFY 2013 and 2014) $3,338,613 $589,167 $3,927, xxx 5307 Formula (Avn-Gdy UZA) $2,328,981 $2,101,481 $4,430, xxx 5310 Enhanced Mobility $693,167 $604,542 $1,297, xxx 5337 SOGR HiBus $939,390 $234,848 $1,174, xxx 5339 Bus and Bus Facilities $4,808,584 $903,496 $5,712, xxx CMAQ $5,974,074 $1,157,537 $7,131, xxx STP $2,658,000 $0 $2,658,000 Total $49,558,534 $12,247,655 $61,806,189 Funds from the Section 5307 Urbanized Area Formula Program are awarded for preventive maintenance, ADA operating assistance and fleet replacement. Additional funds from previous federal fiscal year apportionments are awarded in grant for fleet expansion. Funds from the Section 5307 Urbanized Area Formula Program for the Avondale- Goodyear Urbanized Area are awarded for operating assistance and fleet expansion. Funds from Section 5310, Enhanced Mobility for Seniors and Individuals with Disabilities Program awarded for operating support for the East Valley Ride Choice, Northwest Valley Dial-a-Ride and travel training. Funds from Section 5337, State of Good Repair Hi Capacity Bus Program, are awarded for Peoria Park-and-Ride. Funds from the Section 5339, Bus and Bus Facilities Program, are awarded for replacement fleet and Peoria Park-and-Ride. Valley Metro I 101 N. 1st Ave. Phoenix, AZ

43 Funds from the Congestion Mitigation/Air Quality flexed from the Federal Highways Administration are awarded for Peoria Park-and-Ride and fleet expansion. Funds from the Surface Transportation Program flexed from the Federal Highways Administration are awarded for replacement and expansion fleet for the vanpool program. The City of Phoenix is the designated recipient for all FTA grant funds for the region. Valley Metro undertakes projects approved for FTA grant funding, then submits requests to Phoenix for reimbursement of actual expenses incurred. Phoenix then executes a drawdown of funds from FTA to pass-through the reimbursement to Valley Metro. The pass-through IGAs are required in order for Phoenix to reimburse Valley Metro for eligible expenses. COST AND BUDGET All expenses are in the approved FY 2018 Adopted Operating and Capital Budget and 5-Year Capital Program. The grant funds will offset expenses, reducing the net cost to the Public Transportation Fund and member agency budgets. COMMITTEE PROCESS RTAG: December 19, 2017 for information TMC: January 3, 2018 approved Board of Directors: January 18, 2018 for action STRATEGIC PLAN ALIGNMENT This item relates to the following goals and strategies in the Five-Year Strategic Plan, FY : Goal 2: Advance performance based operation Tactic C: Deliver projects and services on time/on budget RECOMMENDATION Staff recommends that the Board of Directors authorize the CEO to execute the IGAs and change order with the City of Phoenix for the listed grants. CONTACT Paul Hodgins Chief Financial Officer phodgins@valleymetro.org ATTACHMENT 2

44 Information Summary DATE January 11, 2018 AGENDA ITEM 3C SUBJECT Recommended April 2018 Valley Metro Transit Service Changes PURPOSE To request authorization for the Chief Executive Officer (CEO) to amend member agency FY18 Intergovernmental Agreements (IGAs) as necessary to accommodate the recommended April 2018 service changes. BACKGROUND DISCUSSION CONSIDERATION Effective April 23, 2018, Valley Metro transit service changes are recommended throughout the region. Changes were coordinated and analyzed through the five-year Short Range Transit Program as well as the Board adopted Transit Standards and Performance Measures. The service changes were proposed and reviewed in coordination with the Valley Metro Service Planning Working Group comprising representatives from Valley Metro member agencies. Valley Metro worked with affected member agencies regarding the proposed changes and funding impacts. This summary includes bus service changes for Valley Metro-operated routes and routes funded through the regional Public Transportation Fund (PTF). Changes that would specifically affect other locally funded service from different operating agencies (e.g. Phoenix) are not addressed herein. The recommended changes include service changes and route modifications. Recommended Route Changes and Schedule Changes The recommended service changes include route modifications and elimination of trips. The following list outlines all Valley Metro operated or funded recommended service changes: Route 514 Scottsdale Express: In Fountain Hills, modify route to serve new accessible bus stop and Fountain Hills Park-and-Ride. In Scottsdale, eliminate deviation from Shea Blvd. onto Via Linda, serve Mustang Transit Center at 90th Street and Shea Boulevard. Route 30 University Dr: Serve South Mountain Community College campus only with limited trips between 7AM and 4PM while school is in session. Route 77 Baseline Rd: Serve South Mountain Community College with additional mid-day trips to match new service schedule on Route 30 from 7AM to 4PM while school is in session. Valley Metro I 101 N. 1st Ave. Phoenix, AZ

45 Route 70 Glendale Ave: In Glendale, eliminate deviation at 95th Avenue and Maryland Avenue that currently operates during peak time. Route 184 Power Rd: In Mesa and Gilbert, eliminate peak trips from Superstition Springs Transit Center to ASU Polytechnic Campus. Route st Ave. and Baseline Rd: In conjuction with extension of Route st Ave to Baseline Rd, combine into one route on 51 st Ave. from Komatke Health Center near Pecos Rd. to ASU West at Thunderbird Road. Eliminate duplicative service on Baseline Road. Phoenix will take over operation of this route, transferring the IGA with Gila River Indian Community from Valley Metro to Phoenix. Route 575 Northwest Valley Express: Change routing of outbound trip to exit Interstate 17 at Union Hills Drive; continue current service at Glendale Foothills Recreation Aquatic Center and Arrowhead Transit Center. Appendix A shows all service change concepts presented to the public for comments, regardless of funding. Appendix B depicts recommended routing and service changes described herein. Changes resulting in schedule adjustments are not included in the appendix. Valley Metro has prepared a Title VI Evaluation Report, which is available upon request. Public Outreach Valley Metro conducted extensive community outreach from October 16 through November 17 to notify the public and solicit input on the recommended service changes. Transit users have submitted feedback through a variety of methods. Input Opportunities: o Public hearing conducted on November 14, 2017 o Webinar conducted on November 7, 2017 o In-person information sessions from October 30 through November 10, 2017 o Online comment card o Via at input@valleymetro.org o Social media Communication Channels: o Six advertisements were placed in the following publications: Arizona Republic (two ads), East Valley Tribune, La Prensa Hispana, La Voz and Arizona Informant. They included information regarding the proposed route changes, public comment period and public hearing. o Transit vehicle announcements (Route Scout) o A-frame signage at key transit locations o notices to riders and Trip Reduction Program employers o Press release resulting in news coverage o Social media posts 2

46 o Website (valleymetro.org/service changes) o Internal communication to staff and contractors Results o The outreach process yielded 57 total comments specific to the proposed Valley Metro operated and/or funded service changes moving forward. The cumulative results for these proposed changes showed 84% are in favor of the changes, 16% not in favor. COST AND BUDGET The following table provides a summary of the estimated annual costs or savings of the recommended service changes and adjustments necessary to Valley Metro s operating contracts and member agency IGAs. Costs for changes that do not impact Valley Metrooperated routes and routes not funded through PTF are excluded from this table. Estimated Annualized Costs or (Savings) of Service Changes Route Contractor Funding Agency Estimated net 514 First Transit (VM) Fountain Hills $1, First Transit (VM) Scottsdale ($1,000) 30 First Transit (VM) Phoenix ($17,000) 77 First Transit (VM) Phoenix $9, First Transit (VM) Mesa ($15,000) 575 Total Transit (VM) Peoria, Glendale, Phoenix ($12,000) Contract adjustments for minor bus service changes that do not require an amendment to the IGAs will be made through the year-end reconciliation process. No changes are needed to the RPTA Adopted FY18 Operating and Capital Budget or the Adopted RPTA Five-Year Operating Forecast and Capital Program (FY2017 thru FY2021). COMMITTEE PROCESS RTAG: December 19, 2017 for information TMC: January 3, 2018 approved Board: January 18, 2018 for action STRATEGIC PLAN ALIGNMENT This item addresses three goals in the Board-adopted FY16-20 Strategic Plan: Goal 1: Increase customer focus Tactic A: Improve customer satisfaction Goal 2: Advance performance based operations Tactic A: Operate an effective, reliable, high-performing transit system 3

47 RECOMMENDATION Staff recommends that the Board of Directors authorize the CEO to amend member agency FY18 Intergovernmental Agreements as necessary to accommodate the recommended April 2018 service changes. CONTACT Wulf Grote, P.E. Director, Capital and Service Development ATTACHMENT Appendix A Proposed Regional Services Regardless of Funding Source Appendix B Recommended Changes to Valley Metro Operated or Funded Services 4

48 Appendix A Proposed Regional Services Regardless of Funding Source 5

49 Appendix B Recommended Changes to Valley Metro Operated or Funded Services 6

50 1/8/2018 April 2018 Proposed Service Changes January 2018 Proposed Changes All Proposed Changes Presented to Public 2 1

51 1/8/2018 Proposed Changes All Recommended Changes Regardless of Funding 3 Proposed Changes All Recommended Changes for Valley Metro Operated or Funded Services 4 2

52 1/8/2018 Proposed Changes Route 30/77 5 Proposed Changes Route

53 1/8/2018 Proposed Changes Route Proposed Changes Route 51/

54 1/8/2018 Proposed Changes Route Public Outreach Valley Metro conducted extensive community outreach from October 16 through November 17, 2017 to notify the public and solicit input on the recommended service changes. Transit users have submitted feedback through a variety of methods. Input Opportunities: Public hearing conducted on November 14, 2017 Webinar conducted on November 7, 2017 In-person information sessions from October 30 through November 10, 2017 Online comment card Via at input@valleymetro.org Social media 10 5

55 1/8/2018 Recommendation Staff recommends that the Board of Directors authorize the CEO to amend member agency FY18 Intergovernmental Agreements as necessary to accommodate the recommended April 2018 service changes. 11 6

56 Information Summary DATE January 11, 2018 AGENDA ITEM 3D SUBJECT Workers Compensation and Employer s Liability Insurance Coverage Renewal PURPOSE To request authorization for the Chief Executive Officer (CEO) to renew workers compensation and employer s liability insurance coverage for a one-year period with CopperPoint Mutual Insurance Company not to exceed an annual premium of $161,166. BACKGROUND DISCUSSION CONSIDERATION The current insurance policy expires on March 1, The policy covers work-related injuries to all Valley Metro employees and is required by A.R.S The workers compensation insurance has been written by CopperPoint Mutual Insurance Company (formerly SCF Western (a subsidiary of SCF Arizona)) for many years. Valley Metro s broker conducted an extensive marketing search for other available carriers. All but one carrier declined to participate due to the risk associated with Valley Metro s rail industry classification in the insurance market which includes rail operations. CopperPoint Mutual Insurance Company is the only company that provided Valley Metro with a quote to renew the coverage. COST AND BUDGET Premium: Line of Coverage Workers Compensation / Employer s Liability Policy Limit Statutory / $1,000,000 Expiring Premium Renewal Premium $146,331 $161,166 Premium adjusts each year to address total payroll changes. Cost allocation between RPTA and VMR budgets has historically been approximately 11% to RPTA budget and 89% to VMR budget. Valley Metro I 101 N. 1st Ave. Phoenix, AZ

57 COMMITTEE PROCESS RTAG: December 19, 2017 for information TMC: January 3, 2018 approved Board: January 18, 2018 for action STRATEGIC PLAN ALIGNMENT This item relates to the following goals and strategies in the Five-Year Strategic Plan, FY : Goal 2: Advance performance based operation o Tactic D: Maintain a culture to recruit and retain a qualified and diverse workforce. o Tactic E: Maintain strong fiscal controls to support Valley Metro s long-term sustainability RECOMMENDATION Staff recommends that the Board of Directors authorize the CEO to renew the workers compensation and employer s liability insurance coverage for a one-year period with CopperPoint Mutual Insurance Company for an amount not to exceed $161,166. CONTACT Michael J. Minnaugh General Counsel mminnaugh@valleymetro.org ATTACHMENT 2

58 Information Summary DATE January 11, 2018 AGENDA ITEM 3E SUBJECT Portable Vehicle Maintenance Lifts Contract Award PURPOSE To request authorization for the Chief Executive Officer (CEO) to award a contract for the purchase and installation of portable vehicle maintenance lifts through a cooperative agreement with Stertil Koni/Southwest Lift under an Arizona State Contract in an amount not to exceed $138,000 and to establish a 10% contract change contingency of $13,800 that is included in the overall budget. BACKGROUND DISCUSSION CONSIDERATION The Mesa Bus Operations and Maintenance facility utilizes heavy duty portable vehicle maintenance lifts in the maintenance department. These vehicle lifts are used to raise buses off the ground, which enables maintenance technicians to gain access to the vehicle chassis to conduct inspections and repairs. Buses weigh in excess of 30,000 pounds, so the mechanical integrity of these lifting devices must function at a very high level to ensure the safety of maintenance personnel and to protect transit assets. A total of 14 portable lifts are 10 years old and have exceeded their useful life expectancy. Overhauls have been completed in the past but are now beyond repairing economically and to maintain in a state of good repair. Staff received bids from three vendors to replace, install, setup, and train for 14 potable lifts. Stertil Koni/Southwest Lift offered the lowest price and are a registered vendor on a cooperative agreement with the State of Arizona. Cooperative Agreements are contracts that are solicited and awarded by other public entities and whose cooperative language allows Valley Metro to utilize these contracts for goods and services it requires. The cooperative contract for heavy duty vehicle lifts was procured via the State of Arizona Procurement office of the Department of Administration. COST AND BUDGET The cost to replace 14 portable vehicle maintenance lifts and installation is $138,000. A contract contingency of 10 percent ($13,800) is also requested to be used to fund contract changes which are not anticipated, but may become necessary. Valley Metro I 101 N. 1st Ave. Phoenix, AZ

59 For Fiscal Year 2018, the projected cost for this project is fully funded within the Valley Metro Adopted FY18 Operating and Capital Budget. Contract obligations beyond FY18 are incorporated into the Valley Metro Five-Year Operating Forecast and Capital Program (FY2018 thru FY2022). The source of funding is a combination of Prop 400 funds and member cities. COMMITTEE PROCESS RTAG: December 19, 2017 for information TMC: January 3, 2018 approved Board of Directors: January 18, 2018 for action STRATEGIC PLAN ALIGNMENT This item relates to the following goals and strategies in the Five-Year Strategic Plan, FY : Goal 2: Advance performance based operation Tactic C: Deliver projects and services on time/on budget RECOMMENDATION Staff recommends that the Board of Directors authorize the CEO to award a contract for the purchase and installation of portable vehicle maintenance lifts through a cooperative agreement with Stertil Koni/Southwest Lift under an Arizona State Contract in an amount not to exceed $138,000 and to establish a 10% contract change contingency of $13,800 that is included in the overall budget. CONTACT Ray Abraham Chief Operations Officer rabraham@valleymetro.org ATTACHMENT 2

60 Information Summary DATE January 11, 2018 AGENDA ITEM 3F SUBJECT Contract Award for the Manufacture and Delivery of Medium Duty Transit Buses PURPOSE To request authorization for the Chief Executive Officer (CEO) to execute a contract through a State of Arizona cooperative purchasing agreement with Creative Bus Sales for the manufacture and delivery of three medium duty 30 transit buses for Route 685 for a not-to-exceed amount of $582,503. BACKGROUND DISCUSSION CONSIDERATION Ajo Transportation currently operates seven vehicles for the route 685 service between Ajo and Phoenix. Four buses were replaced earlier this fiscal year. The remaining three buses have surpassed their FTA defined minimum useful life of seven years, or 300,000 miles. As a result, staff has researched available vehicle configurations offered by Creative Bus Sales, who currently supplies vehicles to Arizona municipalities via the State Cooperative Purchasing Contract. The StarTrans President Cutaway vehicle is believed to be the most suitable and reliable fit for rural connector service. These replacement vehicles will ensure seamless continuation of the service for route 685, while improving the customer experience. Cooperative Agreements are contracts that are solicited and awarded by other public entities and whose cooperative language allows Valley Metro to utilize these contracts for goods and services it requires. This FTA compliant cooperative contract for medium duty 30 transit buses was procured via the State of Arizona Procurement Office of the Department of Administration and is currently awarded to Creative Bus Sales. COST AND BUDGET The estimated cost for Valley Metro is as follows: Fiscal Year Qty. Length Bus Type Fuel Type FY ft. Cutaway Diesel Optional FY 17 1 Components/Contingency Mfg. Base Price Total Creative Bus Sales $176,516 $529,548 Creative Bus Sales $52,955 Total $582,503 Valley Metro I 101 N. 1st Ave. Phoenix, AZ

61 The above chart is based on the current bus specifications and may change based on the final requirements of the pending bus build with Creative Bus Sales. Any cost increases will be determined once a notice to proceed has been issued to the vendor and all optional equipment has been identified to place the vehicle into revenue service. A contract contingency not to exceed $52,955 is established that is included within the overall budget established for the project for unanticipated charges. An independent cost estimate and a cost comparison and price analysis have been completed. The proposed price has been deemed fair and reasonable. All vehicles will be funded with 85% Federal Transit Administration (FTA) funds and 15% Regional Proposition 400 funds. All costs are fully funded within the RPTA Adopted FY 2017 Operating and Capital Budget. COMMITTEE PROCESS RTAG: December 19, 2017 for information TMC: January 3, 2018 approved Board of Directors: January 18, 2018 for action STRATEGIC PLAN ALIGNMENT This item relates to the following goals and strategies in the Five-Year Strategic Plan, FY : Goal 2: Advance performance based operation o Tactic A: Operate an effective, reliable, high performing transit system RECOMMENDATION Staff recommends that the Board of Directors authorize the CEO to execute a contract through a State of Arizona cooperative purchasing agreement with Creative Bus Sales for the manufacture and delivery of three medium duty 30 transit buses for Route 685 for a not-to-exceed amount of $582,503. CONTACT Ray Abraham Chief Operations Officer rabraham@valleymetro.org ATTACHMENT 2

62 Information Summary DATE January 11, 2018 AGENDA ITEM 3G SUBJECT Mesa Bus Operations and Maintenance Facility Improvements Contracts Awards PURPOSE To request authorization for the Chief Executive Officer (CEO) to award contracts for facility improvements at the Mesa Bus Operations and Maintenance Facility through cooperative agreements under Arizona State Contracts in an amount not to exceed $227,150 and to establish a 10% contract change contingency of $22,715 that is included in the overall budget. BACKGROUND DISCUSSION CONSIDERATION The Mesa Bus Operations and Maintenance facility was constructed in Some components have exceeded their usefull life expectency and need to be repaired, or are due to be replaced that include the following: The tile floor and carpet throughout the administrative and maintenance buildings has become worn and stained and needs to be replaced. Due to the harsh climate in this region, the exterior metal structures and gates are faded and beginning to rust and are in need of repainting. In addition, interior office spaces are in need of repainting. The office chairs, conference and training room chairs, couches and seating room chairs in the operator lounge and the breakroom furniture is worn out and has exceeded their useful life expectancy. Staff received bids from various vendors to perform the improvements that are needed and the table below lists the vendors that were the lowest price and best solution to perform this work and are registered vendors on a cooperative agreement with the State of Arizona. Vendor Description Price Wholesale Floors LLC Floor Coverings $76,000 A & H Painting Inc. Painting Services $72,150 Goodman s Interior Structures Inc. Furniture $79,000 Subtotal $227,150 Contingency (10%) $22,715 Total $249,865 Valley Metro I 101 N. 1st Ave. Phoenix, AZ

63 Cooperative Agreements are contracts that are solicited and awarded by other public entities and whose cooperative language allows Valley Metro to utilize these contracts for goods and services it requires. The cooperative contract for flooring was procured via the State of Arizona Procurement office of the Department of Administration. COST AND BUDGET The costs to perfrom the facility improvements is $227,150. A contract contingency of 10 percent ($22,715) is also requested to be used to fund contract changes which are not anticipated, but may become necessary. For Fiscal Year 2018, the projected cost for this project is fully funded within the Valley Metro Adopted FY18 Operating and Capital Budget. Contract obligations beyond FY18 are incorporated into the Valley Metro Five-Year Operating Forecast and Capital Program (FY2018 thru FY2022). The source of funding is a combination of Prop 400 funds and member cities. COMMITTEE PROCESS RTAG: December 19, 2017 for information TMC: January 3, 2018 approved Board of Directors: January 18, 2018 for action STRATEGIC PLAN ALIGNMENT This item relates to the following goals and strategies in the Five-Year Strategic Plan, FY : Goal 2: Advance performance based operation Tactic C: Deliver projects and services on time/on budget RECOMMENDATION Staff recommends that the Board of Directors authorize the CEO to award contracts for facility improvements at the Mesa Bus Operations and Maintenance Facility through cooperative agreements under Arizona State Contracts in an amount not to exceed $227,150 and to establish a 10% contract change contingency of $22,715 that is included in the overall budget. CONTACT Ray Abraham Chief Operations Officer rabraham@valleymetro.org ATTACHMENT 2

64 Information Summary DATE AGENDA ITEM 4 January 11, 2018 SUBJECT RPTA Fiscal Year 2018 (FY18) Mid-Year Budget Adjustment PURPOSE To request authorization for the Mid-Year Budget Adjustment update to the Valley Metro RPTA Operating and Capital Budget for FY18. BACKGROUND DISCUSSION CONSIDERATION In May 2017, the TMC recommended and the Board approved the FY18 Operating and Capital Budget. The cost factors used to develop the budget have changed and adjustments are warranted to update the expenditures planned for the remainder of the fiscal year. The RideChoice program is experiencing trips lower than planned, so we will be reducing that budget for this service ($0.4M). Regional Paratransit service continues to be successful, resulting in a higher number of trips and higher fuel costs than originally planned ($1.7M). Operating Activities: Budget Description Increase (Decrease) Amt Funding Source RideChoice Service Trips lower than plan $ (410,000) Federal Member Cities Regional Paratransit Trips higher than plan; Fuel costs higher than plan $ 1,705,000 PTF Member Cities Operations Total $ 1,295,000 Total Capital Activity expenditures are being increased by $17.5M. Deferred replacement bus purchases from prior years are expected to be received this fiscal year, as well as expansion buses for new service for Ray Road and the Saturn Orbit. The New Flyer contract has accelerated the delivery of more buses this fiscal year. Rural fleet bus purchase deferrals from FY17 and additional funding allow for seven vehicle replacements this year. Vanpool replacements have increased seven vehicles from plan and vanpool expansion vehicles are being reduced based on need. The bus stop amenities project received $1M from MAG for improving accessibility. We will expend less on Park and Rides this year due to delays in the Glendale project development. Valley Metro I 101 N. 1st Ave. Phoenix, AZ

65 Lead Agency disbursements for VMR Capital are being reduced ($3.4M) to better reflect the forecast of VMR capital expenditures for FY18, resulting in an increase in PTF reserves ($3.4M) for use in a future year. These funds are considered pass-through and have no impact to PTF amounts designated for RPTA use. Capital Activities: Budget Description Increase (Decrease) Amt Funding Source IT Infrastructure HR Software $ 75,000 PTF Fare Collection System Vehicle Management/ Communication Systems Bus Fleet-Replacements Carryover of farebox refurbishments for EV buses not completed in FY17; TVM computer upgrades Reduction in regional communication systems upgrade - milestone payments later than projected Purchase of 20 buses deferred from prior years Bus Fleet Expansion Purchase of 4 standard and 7 circulator buses for expansion- Saturn Orbit and Ray Road Rural Fleet-Replacements Replace 7 Gila Bend Connector buses (4 carryover and 3 additional) Vanpool Fleet -Replacements Replace additional 7 vehicles which are over mileage limits per semiannual review Vanpool Fleet -Expansion Reduce 2 vehicles per semiannual review; overall savings per vehicle based on seat configurations Bus stop Passenger Amenities MAG program to improve accessibility at transit stops within the region Passenger Facilities - Park & Rides Delay in Glendale Park and Ride project development $ 980,000 PTF $ (1,400,000) PTF $ 12,192,000 Federal PTF $ 6,013,000 Federal PTF $ 1,491,000 Federal PTF $ 238,000 Federal $ (159,000) Federal $ 1,000,000 PTF $ (2,914,000) Federal PTF Total $ 17,516,000 Budget VMR Capital (Pass-Thru) Description Increase (Decrease) Amt Decrease lead agency PTF disbursements to Valley Metro Rail $ (3,377,000) to fund capital expenditures Increase PTF reserves for Valley Metro Rail to fund future capital $ 3,377,000 expenditures Total $ - Capital Total: $ 17,516,000 Funding Source PTF PTF 2

66 COST AND BUDGET Changes proposed are incorporated into overall agency uses and sources of funds below: USES OF FUNDS ($000,000) Operating Expenditures Uses of Funds FY18 FY18 Adopted Revised Change $ Change % Fixed Route Operations $93.3 $93.3 $ % Paratransit Operations % Vanpool Operations % Planning % Commute Solutions % Administration and Finance % Regional Services % Sub-Total RPTA Operating $151.7 $153.0 $ % METRO Personnel Costs % METRO RARF Disbursements % AZ Lottery Funds Disbursements % Sub-Total Pass-Through Funds $33.1 $33.1 $ % Total Operating Expenditures $184.8 $186.1 $ % Capital Expenditures Uses of Funds FY18 FY18 Adopted Revised Change $ Change % Regional Fleet % Regional Facilities % Other Regional % Lead Agency Disbursements (3.6) -30.2% Debt Service % Sub-Total RPTA Capital $83.1 $100.6 $ % Lead Agency Disbursements (3.4) -10.2% Reserved for Capital % Sub-Total VMR Capital $43.5 $43.5 $ % Total Capital Expenditures $126.6 $144.1 $ % Total Uses $311.4 $330.2 $ % 3

67 STRATEGIC PLAN ALIGNMENT This item relates to the following goals and strategies in the Five-Year Strategic Plan, FY : Goal 2: Advance performance based operation o o SOURCES OF FUNDS ($000,000) Operating Revenues Source of Funds FY18 FY18 Adopted Revised Change $ Change % Public Transportation Funds $77.5 $77.5 $ % Regional Area Road Funds % Transit Service Agreements % Federal Grants % Fare Revenues % Other Revenues % Carry forward and Reserves % Sub-Total RPTA Operating $152.2 $153.5 $ % METRO Reimbursements % AZ Lottery Funds % Sub-Total Pass-Through Funds $32.6 $32.6 $ % Total Operating Revenues $184.8 $186.1 $ % Capital Revenues Sources of Funds FY18 FY18 Adopted Revised Change $ Change % Public Transportation Funds $24.3 $24.4 $ % Federal Grants % Other Revenues % Carry forward and Reserves % Sub-Total RPTA Capital $83.1 $100.6 $ % PTF Rail Program % PTF Bond Proceeds % Carry forward and Reserves % Sub-Total VMR Capital $43.5 $43.5 $ % Total Capital Revenues $126.6 $144.1 $ % Total Sources $311.4 $330.2 $ % Tactic A: Operate an effective, reliable, high performing transit system. Tactic E: Maintain strong fiscal controls to support Valley Metro s long-term sustainability. 4

68 COMMITTEE PROCESS Financial Working Group: December 19, 2017 for information RTAG: December 19, 2017 for information TMC: January 3, 2018 approved AFS: January 11, 2018 approved Board: January 18, 2018 for action RECOMMENDATION Staff recommends that the Board of Directors authorize the Mid-Year Budget Adjustment update to the Valley Metro RPTA Operating and Capital Budget for FY18. CONTACT Paul Hodgins Chief Financial Officer ATTACHMENT 5

69 1/8/2018 Valley Metro RPTA FY18 Mid-Year Budget Adjustment January 2018 Changes Operations Activities Budget Description Increase (Decrease) Amt Funding Source RideChoice Service Trips lower than plan $ (410,000) Federal Member Cities Regional Paratransit Trips higher than plan; Fuel costs higher than plan $ 1,705,000 PTF Member Cities Operations Total $ 1,295,

70 1/8/2018 Sources of Funds - Operating ($000,000) Source of Funds FY18 FY18 Adopted Revised Change $ Change % Public Transportation Funds $77.5 $77.5 $ % Regional Area Road Funds % Transit Service Agreements % Federal Grants % Fare Revenues % Other Revenues % Carry forward and Reserves % Sub-Total RPTA Operating $152.2 $153.5 $ % METRO Reimbursements % AZ Lottery Funds % Sub-Total Pass-Through Funds $32.6 $32.6 $ % Total Operating Revenues $184.8 $186.1 $ % 3 Operating Funding Changes Operating Sources RideChoice Regional Paratransit Total Public Transportation Funds $ (9,000) $ 984,000 $ 975,000 FTA - section 5310 Enhanced Mobilit 63,000-63,000 TSR - Chandler 68,000 23,000 91,000 TSR - County - 114, ,000 TSR - El Mirage - 81,000 81,000 TSR - Fountain Hills 7,000-7,000 TSR - Gilbert (25,000) 31,000 6,000 TSR - Goodyear - 26,000 26,000 TSR - Mesa (270,000) - (270,000) TSR - Peoria - 138, ,000 TSR - Surprise (222,000) 293,000 71,000 TSR - Tempe (22,000) - (22,000) TSR - Youngtown - 15,000 15,000 Total $ (410,000) $ 1,705,000 $ 1,295,

71 1/8/2018 Uses of Funds - Operating ($000,000) Uses of Funds FY18 FY18 Adopted Revised Change $ Change % Fixed Route Operations $93.3 $93.3 $ % Paratransit Operations % Vanpool Operaitons % Planning % Commute Solutions % Administration and Finance % Regional Services % Sub-Total RPTA Operating $151.7 $153.0 $ % METRO Personnel Costs % METRO RARF Disbursements % AZ Lottery Funds Disbursements % Sub-Total Pass-Through Funds $33.1 $33.1 $ % Total Operating Expenditures $184.8 $186.1 $ % 5 Changes Capital Activities Budget Description Increase (Decrease) Amt Funding Source IT Infrastructure HR Software $ 75,000 PTF Fare Collection System Vehicle Management/ Communication Systems Bus Fleet-Replacements Bus Fleet Expansion Carryover of farebox refurbishments for EV buses not completed in FY17; TVM computer upgrades Reduction in regional communication systems upgrade - milestone payments later than projected Purchase of 20 buses deferred from prior years Purchase of 4 standard and 7 circulator buses for expansion- Saturn Orbit and Ray Road $ 980,000 PTF $ (1,400,000) PTF $ 12,192,000 Federal PTF $ 6,013,000 Federal PTF Rural Fleet-Replacements Replace 7 Gila Bend Connector buses (4 carryover and 3 additional) Vanpool Fleet -Replacements Replace additional 7 vehicles which are over mileage limits per semiannual review $ 1,491,000 Federal PTF $ 238,000 Federal 6 3

72 1/8/2018 Changes Capital Activities (contd.) Budget Vanpool Fleet -Expansion Bus stop Passenger Amenities Passenger Facilities - Park & Rides Description Reduce 2 vehicles per semiannual review; overall savings per vehicle based on seat configurations MAG program to improve accessibility at transit stops within the region Delay in Glendale Park and Ride project development Increase (Decrease) Amt Funding Source $ (159,000) Federal $ 1,000,000 PTF $ (2,914,000) Federal PTF Total $ 17,516,000 Budget VMR Capital (Pass-Thru) Description Increase (Decrease) Amt Decrease lead agency PTF disbursements to Valley Metro Rail to fund capital expenditures $ (3,377,000) Increase PTF reserves for Valley Metro Rail to fund future capital expenditures $ 3,377,000 Funding Source PTF PTF Total $ - 7 Sources of Funds - Capital ($000,000) Sources of Funds FY18 FY18 Adopted Revised Change $ Change % Public Transportation Funds $24.3 $24.4 $ % Federal Grants % Other Revenues % Carry forward and Reserves % Sub-Total RPTA Capital $83.1 $100.6 $ % PTF Rail Program % PTF Bond Proceeds % Carry forward and Reserves % Sub-Total VMR Capital $43.5 $43.5 $ % Total Capital Revenues $126.6 $144.1 $ % 8 4

73 1/8/2018 Uses of Funds - Capital ($000,000) Uses of Funds FY18 FY18 Adopted Revised Change $ Change % Regional Fleet % Regional Facilities % Other Regional % Lead Agency Disbursements (3.6) -30.2% Debt Service % Sub-Total RPTA Capital $83.1 $100.6 $ % Lead Agency Disbursements (3.4) -10.2% Reserved for Capital % Sub-Total VMR Capital $43.5 $43.5 $ % Total Capital Expenditures $126.6 $144.1 $ % 9 Recommendation Staff recommends that the Board of Directors authorize the Mid-Year Budget Adjustment update to the Valley Metro RPTA Operating and Capital Budget for FY

74 Information Summary DATE AGENDA ITEM 5 January 11, 2018 SUBJECT Future Agenda Items Request and Report on Current Events PURPOSE Chair Klapp will request future agenda items from members, and members may provide a report on current events. BACKGROUND DISCUSSION CONSIDERATION COST AND BUDGET COMMITTEE PROCESS STRATEGIC PLAN ALIGNMENT RECOMMENDATION This item is presented for information only. Scott Smith Chief Executive Officer ssmith@valleymetro.org ATTACHMENT Pending Items Request Item Requested Date Requested Planned Follow-up Date Valley Metro I 101 N. 1st Ave. Phoenix, AZ

75 Agenda January 11, 2018 Board of Directors Thursday, January 18, 2018 Lake Powell Conference Room 101 N. 1st Avenue, 10 th Floor 11:15 a.m. 1. Public Comment On Agenda Action Items (Blue Card) The public will be provided with an opportunity at this time to address the Board on all action agenda items. Up to three minutes will be provided per speaker to address all agenda items unless the Chair allows more at his/her discretion. A total of 15 minutes for all speakers will be provided. 2. Minutes Action Recommended 1. For Information 2. For action Minutes from the November 30, 2017 Board meeting are presented for approval. 3. Intergovernmental Agreements (IGAs) with the City of Phoenix for Federal Transit Administration Pass- Through Grants 3. For action Staff recommends that the Board of Directors authorize the CEO to execute the IGAs and change order with the City of Phoenix for the listed grants. 4. Valley Metro Rail Fiscal Year 2018 (FY18) Mid-Year Budget Adjustment 4. For action Paul Hodgins, Chief Financial Officer, will provide an overview of the mid-year budget adjustment and request that the Board of Directors authorize the Mid-Year Budget Adjustment update to the Valley Metro Rail Operating and Capital Budget for FY18. Valley Metro I 101 N. 1st Ave. Phoenix, AZ

76 5. ArtsLine Update 5. For information Scott Smith, CEO, will introduce Hillary Foose, Director, Communications & Strategic Initiatives, provide an informational update to the Board on the ArtsLine branding initiative and program helping to enhance the perception of Valley Metro Rail and the local arts and culture community. 6. Future Agenda Items Request and Report on Current Events 6. For information Chair Glover will request future agenda items from members and members may provide a report on current events. 7. Next Meeting 7. For information The next meeting of the Board is scheduled for Thursday, February 22, 2018 at 12:15 p.m. Qualified sign language interpreters are available with 72 hours notice. Materials in alternative formats (large print, audiocassette, or computer diskette) are available upon request. For further information, please call Valley Metro at or TTY at To attend this meeting via teleconference, contact the receptionist at for the dial-in-information. The supporting information for this agenda can be found on our web site at 2

77 Information Summary DATE AGENDA ITEM 1 January 11, 2018 SUBJECT Public Comment on Agenda Action Items PURPOSE The public will be provided with an opportunity at this time to address the Board on all action agenda items. Up to three minutes will be provided per speaker to address all agenda items unless the Chair allows more at his/her discretion. A total of 15 minutes for all speakers will be provided. BACKGROUND DISCUSSION CONSIDERATION COST AND BUDGET STRATEGIC PLAN ALIGNMENT COMMITTEE ACTION RECOMMENDATION This item is presented for information only. CONTACT Scott Smith Chief Executive Officer ssmith@valleymetro.org ATTACHMENT Valley Metro I 101 N. 1st Ave. Phoenix, AZ

78 Minutes January 11, 2018 Agenda Item 2 Board of Directors Thursday, November 30, 2017 Lake Powell Conference Room 101 N. 1st Avenue, 10 th Floor 11:15 a.m. Meeting Participants Scott Butler for Councilmember Chris Glover, City of Mesa, Chair Councilmember Thelda Williams, City of Phoenix, Vice Chair Vice Mayor Kevin Hartke, City of Chandler Councilmember Lauren Tolmachoff, City of Glendale Vice Mayor Robin Arredondo-Savage, City of Tempe Chair Williams called the meeting to order at 1:35 p.m. 1. Public Comment on Agenda Action Items. 2. Minutes Chair Williams said does anyone have any comments, corrections, or discussion on the minutes? IT WAS MOVED BY SCOTT BUTLER, SECONDED BY COUNCILMEMBER ARREDONDO-SAVAGE AND UNANIMOUSLY CARRIED TO APPROVE THE OCTOBER 19, 2017 BOARD MEETING MINUTES. 3. Consent Agenda Chair Williams said does anyone have any questions, comments, or a motion? IT WAS MOVED BY SCOTT BUTLER, SECONDED BY COUNCILMEMBER ARREDONDO-SAVAGE AND UNANIMOUSLY CARRIED TO APPROVE THE CONSENT AGENDA.

79 4. Rail Design and Construction Change Process 5. ArtsLine Update Chair Williams said that brings us to our regular agenda. Mr. Smith. Mr. Smith said yes, Madam Chair. Ms. Foose is out of town. We were going to delay that anyway. And the other item on the change order can be delayed because we had a very lengthy presentation to the management group and so we're covered on that, so we can delay that to the Board forever. 6. Future Agenda Items Request and Report on Current Events Chair Williams said that brings us to Item 6. Future Agenda Items. Does anyone have any items? Hearing none, then I wish you all a very Merry Christmas, because our next meeting will be January 18, We're adjourned. With no further discussion the meeting adjourned at 1:38 p.m. 2

80 Information Summary DATE AGENDA ITEM 3 January 11, 2018 SUBJECT Intergovernmental Agreements (IGAs) with the City of Phoenix for Federal Transit Administration Pass-Through Grants PURPOSE To request authorization for the Chief Executive Officer (CEO) to execute IGAs with the City of Phoenix to allow Valley Metro to be reimbursed for eligible activities. BACKGROUND DISCUSSION CONSIDERATION Valley Metro is being provided federal funds through the Federal Transit Administration (FTA) from four grant programs. The table below summarizes the funding available: Grant FTA Program Federal Share Local Share Total 2017-xxx 5307 Formula $1,352,407 $338,102 $1,690, xxx 5337 SOGR FG $3,607,438 $901,860 $4,509, xxx CMAQ transit $10,184,276 $2,432,433 $12,616, xxx CMAQ from ALCP $9,500,000 $574,231 $10,074, xxx STP from ALCP $41,987,760 $2,628,953 $44,616,713 Total $66,631,881 $6,875,579 $73,507,460 Funds from the Section 5307 Urbanized Area Formula Program are awarded for preventive maintenance. Funds from Section 5337, State of Good Repair Fixed Guideway Program, are awarded for major component overhauls. Funds from Congestion Mitigation/Air Quality flexed from the Federal Highways Administration awarded for Gilbert Road Extension, Tempe Streetcar, Capitol/I- 10 West and LRV acquisition. Funds from the Surface Transportation Program flexed from the Federal Highways Administration are awarded for Gilbert Road Extension and Fiesta- Downtown Chandler alternatives analysis. The City of Phoenix is the designated recipient for all FTA grant funds for the region. Valley Metro undertakes projects approved for FTA grant funding, then submits requests to Phoenix for reimbursement of actual expenses incurred. Phoenix then executes a drawdown of funds from FTA to pass-through the reimbursement to Valley Metro. Valley Metro I 101 N. 1st Ave. Phoenix, AZ

81 The pass-through IGAs are required in order for Phoenix to reimburse Valley Metro for eligible expenses. COST AND BUDGET All expenses are in the approved FY 2018 Adopted Operating and Capital Budget and 5-Year Capital Program. The grant funds will offset expenses, reducing the net cost to the Public Transportation Fund and member agency budgets. COMMITTEE PROCESS RTAG: December 19, 2017 for information RMC: January 3, 2018 approved Board of Directors: January 18, 2018 for action STRATEGIC PLAN ALIGNMENT This item relates to the following goals and strategies in the Five-Year Strategic Plan, FY : Goal 2: Advance performance based operation Tactic C: Deliver projects and services on time/on budget RECOMMENDATION Staff recommends that the Board of Directors authorize the CEO to execute the IGAs and change order with the City of Phoenix for the listed grants. CONTACT Paul Hodgins Chief Financial Officer ATTACHMENT 2

82 Information Summary DATE AGENDA ITEM 4 January 11, 2018 SUBJECT Valley Metro Rail Fiscal Year 2018 (FY18) Mid-Year Budget Adjustment PURPOSE To request authorization for the Mid-Year Budget Adjustment update to the Valley Metro Rail Operating and Capital Budget for FY18. BACKGROUND/DISCUSSION/CONSIDERATION In May 2017, the Board approved the FY18 Operating and Capital Budget. The cost factors used to develop the budget have changed and adjustments are warranted to update the expenditures planned for the remainder of the fiscal year. Rail operations will use contingency ($0.6M) to fund the Respect the Ride Campaign and the regional vehicle communication upgrade project for computer aided dispatch and automatic vehicle locators. Future project development activities are greater than plan ($3.1M) due to an increase for Northwest Phase II which will be funded by Public Transportation Funds, as illustrated in the table. Operating Activities: Budget Rail Operations Description Regional vehicle communications project CAD/AVL Increase (Decrease) Amt $ 60,000 Respect the Ride/Code of Conduct $ 500,000 Funding Source Member Cities Fares Advertising Applied contingency for Rail Operations $ (560,000) Total $ - Budget Future Project Development Description Increased activity for Northwest Phase II Increase Funding Source (Decrease) Amt $ 3,126,000 PTF Total $ 3,126,000 Operations Total: $ 3,126,000 Annual expenditures will increase for several capital projects in FY18 due to timing of scheduled work. For each capital project, total project costs remain within budget. Valley Metro I 101 N. 1st Ave. Phoenix, AZ

83 ` Project increases include Gilbert Road ($2.2M), CNPA work for Gilbert Road ($0.4M), CNPA work for Tempe Streetcar ($0.7M), 50 th Street Station ($1.4M), and South Central ($6.2M). We will expend less than planned for Non-Prior Rights utilities for both Tempe Streetcar ($5.5M) and South Central ($3.6M), as this work will take place in FY19. Systemwide improvements will see two decreases; revising of budget to match schedule for light rail vehicle payments ($8.2M) and rescheduling of some light rail vehicle maintenance to FY19 ($1.8M). Capital Activities: Budget Description Increase (Decrease) Amt Funding Source Gilbert Road Capital Project Additional 3 parcels left to acquire $ 2,181,000 City of Mesa CMAQ Gilbert Road CNPA Tempe Streetcar Capital Tempe Streetcar CNPA Sewer lining, manhole rehab, and overhead to underground utilities conversion Non-prior rights utilities costs later than assumed in budget Waterline work, 1st/Ash intersection and roundabout $ 363,000 City of Mesa $ (5,453,000) PTF CMAQ $ 696,000 City of Tempe 50th Street Station Additional real estate acquisition $ 1,365,000 City of Phoenix South Central Capital Systemwide Improvements Preliminary systems engineering and downtown connector Most of the non-prior rights utilities design work will be completed in early FY19 as opposed to this fiscal year. Revise budget to match schedule for Light Rail Vehicle payments $ 6,191,000 City of Phoenix $ (3,648,000) $ (8,178,000) PTF Federal Deferral of brake resistor overhaul $ (1,814,000) to FY19 based on component surveys. Rescheduling of overhaul starts for coupler, motor & center trucks, and gear units. Capital Total: $ (8,297,000) 2

84 ` COST AND BUDGET Changes proposed are incorporated into overall agency uses and sources of funds below: USES OF FUNDS ($000,000) Operating Expenditures Uses of Funds FY18 FY18 Adopted Revised Change $ Revenue Operations $47.9 $47.9 $0.0 Future Project Development Agency Operating Budget Total Operating Expenditures $67.1 $70.2 $3.1 Capital Expenditures Uses of Funds FY18 FY18 Adopted Revised Change $ Central Mesa Extension Gilbert Road Extension Tempe Streetcar Extension (5.5) 50th Street LRT Station South Central Extension Ops. & Maint. Center Expansion CNPAs - Gilbert Road CNPAs - Tempe Streetcar Systemwide Improvements (10.0) Total Capital Expenditures $203.5 $195.2 ($8.3) Total Uses $270.6 $265.4 ($5.2) Debt Service Uses of Funds FY18 FY18 Adopted Revised Change $ Debt Service - Interest $0.0 Debt Service - Principal $0.0 Total Debt Service $28.2 $28.2 $0.0 Total Uses with Debt Service $298.8 $293.7 ($5.2) 3

85 ` SOURCES OF FUNDS ($000,000) STRATEGIC PLAN ALIGNMENT This item relates to the following goals and strategies in the Five-Year Strategic Plan, FY : Goal 2: Advance performance based operation o o Operating Revenues Source of Funds FY18 FY18 Adopted Revised Change $ Fare Revenue $14.3 $14.3 $0.0 Advertising Revenue Federal 5307 PM Federal Federal CMAQ Transit Service Agreements MAG / RPTA (RARF) PTF Sales Tax Revenue Total Operating Revenues $67.1 $70.2 $3.1 Capital Revenues Sources of Funds FY18 FY18 Adopted Revised Change $ FTA - Section 5309 $29.2 $29.2 $0.0 Federal CMAQ ($9.7) Federal 5337 SOGR $0.0 Federal 5312 MOD $0.0 Member Cities $5.1 PTF Sales Tax Revenue ($3.7) Total Capital Revenues $203.5 $195.2 ($8.3) Total Sources $270.6 $265.4 ($5.2) Debt Service Sources of Funds FY18 FY18 Adopted Revised Change $ PTF Sales Tax Revenue $0.0 Total Debt Service $28.2 $28.2 $0.0 Total Sources with Debt Servic $298.8 $293.7 ($5.2) Tactic A: Operate an effective, reliable, high performing transit system. Tactic E: Maintain strong fiscal controls to support Valley Metro s long-term sustainability. 4

86 ` COMMITTEE ACTION Financial Working Group: December 19, 2017 for information RTAG: December 19, 2017 for information RMC: January 3, 2018 approved Audit and Finance Subcommittee: January 11, 2018 for action Board of Directors: January 18, 2018 for action RECOMMENDATION Staff recommends that the Board of Directors authorize the Mid-Year Budget Adjustment update to the Valley Metro Rail Operating and Capital Budget for FY18. CONTACT Paul Hodgins Chief Financial Officer ATTACHMENT 5

87 1/8/2018 Valley Metro Rail FY18 Mid-Year Budget Adjustment January 2018 Changes Operations Activities Budget Rail Operations Description Regional vehicle communications project CAD/AVL Respect the Ride/Code of Conduct Applied contingency for Rail Operations Increase (Decrease) Amt $ 60,000 $ $ 500,000 (560,000) Total $ - Funding Source Member Cities Passenger Fares Advertising Revenue Budget Future Project Development Description Increase (Decrease) Amt Funding Source Increased activity for Northwest $ 3,126,000 PTF Phase II Total $ 3,126,000 Operations Total: $ 3,126,

88 1/8/2018 Sources of Funds - Operating ($000,000) Source of Funds FY18 FY18 Adopted Revised Change $ Fare Revenue $14.3 $14.3 $0.0 Advertising Revenue Federal 5307 PM Federal Federal CMAQ Transit Service Agreements MAG / RPTA (RARF) PTF Sales Tax Revenue Total Operating Revenues $67.1 $70.2 $3.1 3 Uses of Funds - Operating ($000,000) Uses of Funds FY18 FY18 Adopted Revised Change $ Revenue Operations $47.9 $47.9 $0.0 Future Project Development Agency Operating Budget Total Operating Expenditures $67.1 $70.2 $

89 1/8/2018 Changes Capital Activities 5 Changes Capital Activities Budget South Central Capital Systemwide Improvements Description Preliminary systems engineering and downtown connector Most of the non-prior rights utilities design work will be completed in early FY19 as opposed to this fiscal year. Revise budget to match schedule for Light Rail Vehicle payments. Deferral of brake resistor overhaul to FY19 based on component surveys. Rescheduling of overhaul starts for coupler, motor & center trucks, and gear units. Increase Funding Source (Decrease) Amt $ 6,191,000 City of Phoenix $ (3,648,000) $ (8,178,000) PTF Federal $ (2,894,000) Capital Total: $ (9,377,000) 6 3

90 1/8/2018 Sources of Funds - Capital ($000,000) Sources of Funds FY18 FY18 Adopted Revised Change $ FTA Section 5309 $29.2 $29.2 $0.0 Federal CMAQ ($9.7) Federal 5337 SOGR $0.0 Federal 5312 MOD $0.0 Member Cities $5.1 PTF Sales Tax Revenue ($4.8) Total Capital Revenues $203.5 $194.1 ($9.4) 7 Uses of Funds - Capital ($000,000) Uses of Funds FY18 FY18 Adopted Revised Change $ Central Mesa Extension Gilbert Road Extension Tempe Streetcar Extension (5.5) 50th Street LRT Station South Central Extension Ops. & Maint. Center Expansion CNPAs - Gilbert Road CNPAs - Tempe Streetcar Systemwide Improvements (11.1) Total Capital Expenditures $203.5 $194.1 ($9.4) 8 4

91 1/8/2018 Recommendation Staff recommends that the Board of Directors authorize the Mid-Year Budget Adjustment update to the Valley Metro Rail Operating and Capital Budget for FY

92 Information Summary DATE AGENDA ITEM 5 January 11, 2018 SUBJECT ArtsLine Update PURPOSE To provide an informational update to the Board on the ArtsLine branding initiative and program helping to enhance the perception of Valley Metro Rail and the local arts and culture community. BACKGROUND DISCUSSION CONSIDERATION Valley Metro Rail (VMR) is a connector of communities and destinations of interest. Specifically, VMR connects more than 55 arts and culture organizations within a halfmile of the line. These venues range from major arts centers to musical halls to historical places and museums. In addition to these destinations, VMR boasts a beautiful array of its own public art at all stations, park-and-rides and many traction power substations. With all this in mind, ArtsLine has come forward as an opportunity to concentrate all this activity and promotion around a singular brand. This brand and associated program help to build a positive perception for the transit system, maximize the current, public investment in this system and, ultimately, create positive rider experiences and gains in overall ridership. In addition, this program magnifies and further solidifies a strong connection with the local arts and culture community, who also help to enhance the livability and quality of life of this region. ArtsLine comes to life through a variety of current and future initiatives, including: Arts & Culture Destination Guide ArtsLine Rotating Transit Art Series Youth programs like Design a Transit Wrap contest Light Rail Plays performed by Rising Youth Theatre actors World Bazaar Community Market at 19th/Camelback park-and-ride Holiday events including the Mesa Polar Express Online at valleymetro.org/arts And future initiatives that could include more public art (temporary and potentially permanent); ridership promotions; and events or festivals COST AND BUDGET Some of the programming elements (above) have costs incorporated into the approved FY18 Capital & Operating Budget. These costs are largely printing costs. As the Valley Metro I 101 N. 1st Ave. Phoenix, AZ

93 program grows, costs will be factored into future budget cycles. STRATEGIC PLAN ALIGNMENT This item relates to the following goals and strategies in the Five-Year Strategic Plan, FY : Goal 1: Increase customer focus Tactic A: Improve customer satisfaction Goal 2: Advance performance based operation Tactic A: Expand and improve transit services to reach new markets Tactic C: Communicate availability, attractiveness and safety of transit service COMMITTEE PROCESS RTAG: October 17, 2017 for information RMC: November 1, 2017 for information Board of Directors: January 18, 2018 for information RECOMMENDATION This item is presented for information only. CONTACT Hillary Foose Director, Communications & Strategic Initiatives ATTACHMENT 2

94 1/8/2018 ArtsLine Update January

95 1/8/

96 1/8/

97 1/8/ Future Initiatives More events & programming Greater city & local partnerships Ridership promotions Temporary public art 8 4