BOARD ROSTER SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY

Transcription

1 BOARD OF DIRECTORS OCTOBER 27, 2017

2 BOARD ROSTER SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY County Member Alternate Riverside: Andrew Kotyuk (Chair) Brian Berkson* 2 votes Council Member Council Member City of San Jacinto City of Jurupa Valley RCTC Board RCTC Board Debbie Franklin Mayor Pro Tem At Large City of Banning RCTC Board Adam Rush* Council Member City of Eastvale RCTC Board Ventura: Brian Humphrey (Vice-Chair) Ginger Gherardi 1 vote Citizen Representative Vice Mayor VCTC Board City of Santa Paula VCTC Board Los Angeles: Ara Najarian (2 nd Vice-Chair) Walter Allen, III 4 votes Councilmember Mayor Pro Tem City of Glendale City of Covina Metro Board Metro Appointee Kathryn Barger Supervisor, 5 th District County of Los Angeles Metro Board Paul Krekorian Councilmember, 2 nd District City of Los Angeles Metro Board Hilda Solis Supervisor, 1st District County of Los Angeles Metro Board Roxana Martinez Metro Appointee Borja Leon Metro Appointee Joseph J. Gonzales Councilmember City of South El Monte Metro Appointee

3 SCRRA Board of Directors Roster Page 2 San Bernardino: Larry McCallon Jon Harrison* 2 votes Mayor Pro Tem Council Member City of Highland City of Redlands SBCTA Board SBCTA Board Paul Eaton Mayor City of Montclair SBCTA Board Alan D. Wapner* Mayor Pro Tem City of Ontario SBCTA Board Orange: Shawn Nelson Laurie Davies* 2 votes Supervisor, 4 th District Councilmember County of Orange City of Laguna Niguel OCTA Board OCTA Board Gregory T. Winterbottom Public Member OCTA Board Richard D. Murphy* Council Member City of Los Alamitos OCTA Board EX-OFFICIO MEMBERS San Diego Association of Governments: [CURRENTLY AWAITING APPOINTMENT] Contact: Linda Culp Principal Planner Rail Southern California Association of Governments: State of California: Art Brown Council Member, City of Buena Park Ryan Chamberlain Director, Caltrans District 12 Alternate: Gary Slater Deputy Director, Caltrans, District 7 *Alternates represent either member Revised

4 BOARD OF DIRECTORS MEETING FRIDAY, OCTOBER 27, :00 A.M. Or immediately following the Executive Management and Audit Committee Meeting LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY (METRO) BOARD ROOM ONE GATEWAY PLAZA, 3RD FLOOR LOS ANGELES, CALIFORNIA AGENDA DESCRIPTIONS The agenda descriptions are intended to give notice to members of the public of a brief general description of items of business to be transacted or discussed. The posting of the recommended actions does not indicate what action will be taken. The Authority may take any action that it deems to be appropriate on the agenda item and is not limited in any way by the notice of the recommended action. The Chair reserves the right to discuss the items listed on the agenda in any order. A person with a disability may contact the Board Secretary s office at (213) or via holmank@scrra.net at least 72-hours before the scheduled meeting to request receipt of an agenda in an alternative format or to request disability-related accommodations, including auxiliary aids or services, in order to participate in the public meeting. Later requests will be accommodated to the extent feasible. SUPPORTING DOCUMENTATION The agenda, staff reports and supporting documentation are available from the Board Secretary, located at One Gateway Plaza, 12 th Floor, Los Angeles, CA 90012, and on the Metrolink website at under the Meetings & Agendas link. PUBLIC COMMENTS ON AGENDA ITEMS AND ITEMS NOT ON THE AGENDA Members of the public wishing to address the Board of Directors regarding any item appearing on the agenda or any item not on the agenda, but within the subject matter jurisdiction of the Board, may do so by completing a Speaker s Form and submitting it to the Board Secretary. All speakers will be recognized by the Chairman and will be considered under Item 4 (Public Comment). When addressing the Board, please state your name for the record. Please address the Board as a whole through the Chair. Please note comments to individual Board members or staff are not permitted when addressing the Board. A speaker s comments shall be limited to three (3) minutes.

5 Board of Directors Meeting Agenda Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 2 1. Call to Order 2. Pledge of Allegiance 3. Roll Call 4. Public Comment REGULAR CALENDAR 5. Approval of Meeting Minutes October 13, 2017 Board of Directors Meeting It is recommended that the Board approve the Minutes of the October 13, 2017 Board of Directors Meeting. Page 1 6. Adoption of Board and Committee Meeting Dates for Calendar Year 2018 Staff has prepared the Board of Directors and Executive Management and Audit Committee meeting schedule for 2018 in an effort to maintain a regular meeting schedule and avoid schedule conflicts. It is recommended that the Board approve and adopt the 2018 Board and Committee meeting schedule, as detailed in Attachment 1 of the staff report. There is no budgetary impact as a result of this report. Page Contract No. QM On-Call Audit Services Bench Recommendation to Award BCA Watson Rice LLP; Conrad LLP; Crowe Horwath LLP; Grant Thornton LLP; Vasquez & Company LLP The Authority requires a bench of technically qualified firms to provide on-call audit services. Having a bench of diverse firms will aid the Authority in targeting specific audits to the firm with the best expertise in that area and will ensure timely completion of simultaneous audits. It is recommended the Board authorize the Chief Executive Officer to award the following five bench contracts to provide on-call audit service: 1) QM158A-18 BCA Watson Rice LLP 2) QM158B-18 Conrad LLP 3) QM158C-18 Crowe Horwath LLP 4) QM158D-18 Grant Thornton LLP 5) QM158E-18 Vasquez & Company LLP

6 Board of Directors Meeting Agenda Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 3 The requested contract term will be for a base period of two years with a single twoyear option. The total not-to-exceed amount for the base period of two years for all five contracts is $500,000. The awards are subject to resolution of any protest timely filed. The amounts for which contract authority is requested are included in the Adopted Operational Budget for FY ($250,000). Funding for subsequent years will be requested through the annual budget or an equivalent process. There is no financial commitment with respect to subsequent years and work will be authorized only if funding is approved. Page Request for Technical Qualification No. OP Approval of Evaluation Criteria Metrolink Dispatch Services Proposed evaluation criteria have been developed to initiate a Request for Technical Qualification (RFTQ) to retain a qualified firm to provide dispatch services for Metrolink s commuter rail service. It is recommended that the Board approve the proposed evaluation criteria detailed in Attachment 1 of the staff report, specifying weighting of 80% for technical qualifications and 20% for cost, to retain a qualified firm to provide dispatch services in support of daily commuter operations. There is no budgetary impact as a result of this report. Page Cooperative Agreement with Orange County Transportation Authority for Laguna Niguel to San Juan Capistrano Passing Siding Project Approval is needed to execute a Cooperative Agreement with Orange County Transportation Authority (OCTA) for provision of the Authority s support services to the construction of the Laguna Niguel to San Juan Capistrano Passing Siding Project on the Orange County Line in the City of Laguna Niguel and the City of San Juan Capistrano. The purpose of the passing siding project is to alleviate the current and potential rail traffic impacts on the LOSSAN rail corridor by eliminating duration of train meets. It is recommended that the Board authorize the Chief Executive Officer to negotiate and execute Cooperative Agreement No. C between OCTA and the Authority in the amount of $5,507,000 to define roles, responsibilities and funding for construction of the Laguna Niguel to San Juan Capistrano Passing Siding Project on the Orange County Line in the City of Laguna Niguel and the City of San Juan Capistrano. There is no budgetary impact as a result of this report. Page 23

7 Board of Directors Meeting Agenda Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page Festival of Lights Special Train Service Improvements Metrolink train service to the 2016 Festival of Lights (FOL) experienced significant operational challenges which led to very serious passenger delays and inconvenience. At the January 13, 2017 Board meeting, staff presented a debrief and lessons learned. Staff developed improved operational service for the FOL special train to ensure a positive customer experience. The Board may receive and file this report. There is no budgetary impact as a result of this report. Page Optic Reader Marketing and Communication Plan Staff is updating the Board on the Optic Reader marketing and communication plan. To ensure riders are aware of the benefits of this new digital ticketing option, the Authority has developed a comprehensive Marketing and Communications Plan. The Board may receive and file this report. Staff has allocated $151,000 for the marketing campaign and funding was included in the FY operating budget. Page Quarterly Report Bus Bridge Response for Unplanned Services Disruptions Staff is providing an update on alternate bus bridge provider response during the first quarter of Fiscal Year (July-September 2017). The Board may receive and file this report. There is no budgetary impact as a result of this report. Page Internal Audit Corrective Action Status Update Quarter Ending September 30, 2017 The following status of all audit related corrective actions being monitored and tracked by the Internal Audit is provided for informational purposes. The Board may receive and file this report. There is no budgetary impact as a result of this report. Page Ticket Vending Machine Availability and Performance Staff is providing an update on ticket vending machine (TVM) availability and performance.

8 Board of Directors Meeting Agenda Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 5 The Board may receive and file this report. The amounts for which contract authority is requested will be covered by a transfer from another approved budget item in the FY Adopted Operations Budget. Page Performance Update on Contract No. OP Operator Services Quarter Ended September 30, 2017 Staff is providing an update on Contract No. OP Operator Services with the National Railroad Passenger Corporation (Amtrak). This report will discuss fare compliance, inspection policy, and train and engine crew responsibilities. The Board may receive and file this report. There is no budgetary impact as a result of this report. Page Onboard Automatic Electronic Defibrillators Staff is providing an update of Automatic Electronic Defibrillators (AEDs). This report includes information regarding installation and training costs. The Board may receive and file this report. There is no budgetary impact as a result of this report. However, if the board directs the Authority to invest in AEDs, staff would return to the Board with additional details on how to fund this initiative. Page Federal Railroad Administration Violations Update Per the Board s request, this is a quarterly update on violations received from the Federal Railroad Administration (FRA). This report includes data for the second quarter of the calendar year, from April through June The Board may receive and file this report. There is no budgetary impact as a result of this report. Page Quarterly Grants Update Staff is providing an update to the Board summarizing capital grant acquisition, reprogramming and closeout activity for the period from July 1, 2017 to September 30, The Authority applies for grant funding from federal, state, regional and local entities to deliver its rehabilitation and new capital programs. These programs are composed of projects that rehabilitate, enhance and expand the Metrolink rail system.

9 Board of Directors Meeting Agenda Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 6 The Board may receive and file this report. There is no budgetary impact as a result of this report. Page Chief Executive Officer s Report Authority Update 20. Board Members Comments 21. Chair s Comments 22. ADJOURNMENT NEXT BOARD MEETING: Friday, November 17, 2017

10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING October 13, 2017 ITEM 5 BOARD MEMBERS/ALTERNATES IN ATTENDANCE: Votes RCTC: ANDREW KOTYUK (Chair) 1 (2 votes) DEBBIE FRANKLIN 1 Brian Berkson VCTC: BRIAN HUMPHREY (Vice-Chair) 1 (1 vote) METRO: ARA NAJARIAN (2 nd Vice-Chair) 1 (4 votes) KATHRYN BARGER 1 Joseph Gonzales 1 Borja Leon 1 Walter Allen Roxana Martinez SBCTA: LARRY MCCALLON 1 (2 votes) Jon Harrison 1 OCTA: SHAWN NELSON 2 (2 votes) EX-OFFICIO MEMBERS SCAG Art Brown State of California -- STAFF/PRESENTERS: ARTHUR T. LEAHY, Chief Executive Officer AMANDA ALTON, Senior Manager, Finance NEIL BROWN, Program Manager, Fleet 1

11 Board of Directors Meeting Minutes October 13, 2017 Transmittal Date: October 20, 2017 Page 2 PATRICIA TORRES BRUNO, Chief of External Affairs DON DEL RIO, General Counsel RODERICK DIAZ, Director, Planning & Development GEOFFREY FORGIONE, Associate General Counsel SONNY IBRAHIM, Senior Contract and Compliance Administrator ELISSA KONOVE, Deputy Chief Executive Officer ANDY LY, Senior Manager, Fare Collections WHITNEY O NEILL, Senior Manager, Government & Regulatory Affairs MARYLOU WILLIAMS, Assistant Director, Program Management Office CHRISTINE WILSON, Senior Manager, Finance KIMBERLY YU, Deputy Chief Operating Officer, Planning and Project Delivery CHERI SMITH, Assistant Board Secretary KARI HOLMAN, Assistant to the CEO/Board Secretary Meeting minutes are prepared in a format that corresponds with the Board Meeting Agenda, which is incorporated by reference with these minutes. Board Agendas are available online at under the Meetings and Agendas link or from the Board Secretary at (213) Call to Order The October 13, 2017 Board of Directors Meeting was called to order by Chair Kotyuk at 10:05 a.m. at the Metro Board Room, One Gateway Plaza, 3 rd Floor, Los Angeles, CA Pledge of Allegiance 2 nd Vice-Chair Najarian led the group in the pledge of allegiance. 3. Roll Call The Board Secretary called roll to confirm a quorum of the Board was present. 4. Public Comment At this time, Chair Kotyuk inquired if the Board Secretary had received any Request to Speak forms, and it was confirmed that no requests were received. The Public Comment period was then closed. 5. Recognition Chair Kotyuk called on Director Barger and 2 nd Vice-Chair Najarian for a special recognition of Melissa Michaels, passenger, who aided Conductor Frank Heredia in saving the life of an unconscious passenger onboard a Metrolink train in April

12 Board of Directors Meeting Minutes October 13, 2017 Transmittal Date: October 20, 2017 Page 3 Director Barger presented Melissa Michaels with a 5-signature scroll for her extraordinary heroism. REGULAR CALENDAR 6. Contract No. C Ventura County Sealed Corridor Increase in Contract Funding Authorization Balfour Beatty Rail, Inc. Sonny Ibrahim, Senior Contract and Compliance Administrator provided a brief background on this item as detailed in the staff report and requested approval of staff s recommendation. Upon a motion by Director Nelson and seconded by Director McCallon the Board approved the recommendation. There was no opposition and the motion passed unanimously. ACTION: The Board authorized the Chief Executive Officer amend Contract No. C , Ventura County Sealed Corridor with Balfour Beatty Rail, Inc. (Balfour) to: 1) Increased the total Board authorized contract funding authorization amount by $535, from $7,486, to $8,022, for Contract No. C , Ventura County Sealed Corridor with Balfour for additional costs due to construction delays and other justified costs totaling $850,622.36, which was equal to the amount of the Final Change Order #56 (CN56) less existing unspent contingency of $314, ) Authorized the Chief Executive Officer to execute CN56 in the amount of $850, as the full and final settlement to closeout this project. 7. Contract No. EP Material Handling Equipment Recommendation to Award Yale Chase Equipment and Services, Inc. Sonny Ibrahim, Senior Contract and Compliance Administrator provided a brief background on this item as detailed in the staff report and requested approval of staff s recommendation. Upon a motion by Director Nelson and seconded by Director McCallon the Board approved the recommendation. There was no opposition and the motion passed unanimously. ACTION: The Board authorized the Chief Executive Officer to award Contract No. EP to the single responsive and responsible bidder, Yale Chase Equipment and Services, Inc., for a total not-to-exceed amount of $301,752. 3

13 Board of Directors Meeting Minutes October 13, 2017 Transmittal Date: October 20, 2017 Page 4 8. Redlands Passenger Rail Project Operations and Maintenance and Capital Improvement Agreements Roderick Diaz, Director, Planning & Development provided a brief background on this item as detailed in the staff report. ACTION: The Board received and filed this report on the development of both an Operations and Maintenance (O&M) agreement and a Capital Improvements Agreement (CIA) necessary for the implementation of the RPRP. 9. Approval of Meeting Minutes September 8, 2017 Board of Directors Meeting Upon a motion by Director McCallon and seconded by 2 nd Vice-Chair Najarian the Board approved the recommendation. There was no opposition and the motion passed unanimously. ACTION: The Board approved the Minutes of the September 8, 2017 Board of Directors Meeting. 10. Capital Program Status Report Quarter Ended June 30, 2017 Marylou Williams, Assistant Director, Program Management Office provided a brief background on this item as detailed in the staff report. ACTION: The Board received and filed this report. 11. Preliminary Comparative Operating Statement Actual vs Budget for Fiscal Year 2017 and vs Actual of Fiscal Year 2016 Christine Wilson, Senior Manager, Finance provided a brief background on this item as detailed in the staff report. Director Franklin inquired if the member agencies would be credited with the $13.1 million in surplus monies for FY Christine Wilson responded that with the exception of any final audit adjustments the monies would be placed in the respective deferred revenue member agency accounts. ACTION: The Board received and filed this report. 4

14 Board of Directors Meeting Minutes October 13, 2017 Transmittal Date: October 20, 2017 Page Preliminary FY Quarterly Accounts Receivable Status Report Quarter Ended June 30, 2017 Amanda Alton, Senior Manager, Finance provided a brief background on this item as detailed in the staff report. Director Franklin asked if staff had seen an increase in collections after the implementation of adding interest for late payments. Amanda Alton indicated that the interest charge only applied to new accounts within the Corporate Partner Program (CPP) and noted that CPP customers with executed agreements prior to February 2017 verbiage regarding interest charges was not included. She also explained that previous accounts receivables with delinquent payments were due to system issues with the Ticket Vending Machines (TVMs) and the CPP customers were slow to pay due to concerns that the invoices were possibly incorrect. Amanda Alton reported that this particular issue had been resolved and that she saw improvements with those receivables. 2 nd Vice-Chair Najarian questioned if the $2 million past due over 180 days (due from other agencies), was Caltrans or member agency(ies). Amanda Alton replied that it was Caltrans which also had items past due in the third-party receivables category. She explained that the reason Caltrans receivables were over 180 days was invoices required Indirect Cost Allocation Plan (ICAP) approval before payment could be made. She assured the Board that this past due item would be paid. ACTION: The Board received and filed this report. 13. Preliminary FY Quarterly Investment Report Quarter Ended June 30, 2017 Amanda Alton, Senior Manager, Finance provided a brief background on this item as detailed in the staff report. ACTION: The Board received and filed this report. 14. State and Federal Legislative Update and Federal Year End Review Whitney O Neill, Senior Manager, Government & Regulatory Affairs provided a brief background on this item as detailed in the staff report. She noted the following state updates: Senate Bill 1 (SB 1) - new developments: o Two ballot initiatives ostensibly scheduled for the 2018 mid-term election to repeal SB1: 5

15 Board of Directors Meeting Minutes October 13, 2017 Transmittal Date: October 20, 2017 Page 6 1) Introduced by Assemblyman Travis Allen of Orange County ballot initiative would remove the authority of the underlying law of SB 1 by taking away the taxing authority, programs and accountability. 2) Introduced by the Republican Congressional Committee (RCC) ballot initiative would require any future measure that either increased a gas tax or vehicle use fee be ratified by voters. Whitney O Neill indicated that both of these ballot initiatives would only require a simple majority to be passed into law. Assembly Bill 805 (AB 805) which would restructure the San Diego Association of Governments (SANDAG) Board was signed by the Governor Brown and would be passed into law. Senate Bill 502 (SB 502) Staff has continued working with Senator Portantino s office regarding his Bill to mandate Automated External Defibrillators (AED s) on commuter railroads. She noted the following federal updates: The House of Representatives passed their budget resolution which provided reconciliation instructions that allowed for tax reform to be passed by a simple majority. At this time, Whitney O Neill introduced the federal advocacy team. The members of the advocacy team provided a brief overview of their services over the course of the last several years. Mark Kadesh Kadesh & Associates Chris Kierig Kadesh & Associates Rick Alcalde Potomac Partners Dan Feliz Potomac Partners Don Norton Chambers, Conlon and Hartwell The federal advocacy team highlighted some key accomplishments that were met which included Positive Train Control (PTC), and inward facing cameras. The team recounted efforts such as adding the Rehabilitation and Improvement Financing (RIFF) program with the Federal Railroad Administration (FRA) for commuter railroads as well as Spectrum issues with the Federal Communications Commission (FCC) related to the Authority s PTC program. Chair Kotyuk thanked the federal advocacy team for their efforts and accomplishments especially following the Chatsworth incident of He also noted that there was a meeting between himself and the federal advocacy team immediately following the board meeting regarding the Authority s vision for the future. 6

16 Board of Directors Meeting Minutes October 13, 2017 Transmittal Date: October 20, 2017 Page 7 Director Nelson reiterated the support received from the federal advocacy team during the two-year period that he served as Board Chair. He stressed the importance of this federal advocacy team which crossed all party lines and noted that most of the decision makers in Congress were not Southern California based representatives. He remarked that the Authority had been given access to and received support from parties who did not have interests in Southern California. He stressed to the Board how critical it was that the Authority had some wins in Congress and that the federal advocacy team was a very talented group of people working for the Authority s interests. He appreciated their challenging work and thanked the team. Director Nelson suggested that staff and legal counsel consider options for longer contract extensions as extensions were currently in one-year increments. Arthur T. Leahy replied that the Authority was not looking to procure a new firm at this time, only would return to the Board to request extensions to the current bench contract. ACTION: The Board received and filed this report. 15. Tier 4 Locomotive Update and Delivery Status Kimberly Yu, Deputy Chief Operating Officer, Planning and Project Delivery introduced Neil Brown, Program Manager, Fleet who provided a brief background on this item as detailed in the staff report. He noted a few recent milestones regarding the Tier 4 Locomotives: September 30, 2017 FRA conditions for entry into revenue service were satisfied. October 11, 2017 the Authority conditionally accepted Locomotive 908, the inaugural in-service run was October 12, 2017 on San Bernardino Line 318. Locomotive 907 was expected to be in revenue service early next week. The look-ahead goal was to accept two more locomotives into revenue service by the end of the month. Director Berkson stated that this morning he saw locomotive 908 in service along the 10 freeway and he was also in attendance for the press event/inaugural train ride that took place on October 5, Arthur T. Leahy stated that he appreciated the work that Neil Brown and staff performed for this project. He also stated that earlier that week he attended the American Public Transportation Association (APTA) Conference, and noted that the Commuter Rail Committee commended the Authority on this achievement. Chair Kotyuk also mentioned the Tier 4 locomotive ceremony which commemorated the inaugural ride and press event with Board members and local elected officials in 7

17 Board of Directors Meeting Minutes October 13, 2017 Transmittal Date: October 20, 2017 Page 8 attendance. He also thanked Neil Brown and his team for their efforts with the project. ACTION: The Board received and filed this report. 16. Mobile and Online (Web Based) Ticketing Project Update Andy Ly, Senior Manager, Fare Collections provided a brief background on this item as detailed in the staff report. Director Leon asked when the actual contract for this item was approved. Andy Ly stated that he did not have that information readily available and would get back to the board with the information 1. Director Leon inquired when the optical readers were initially expected to be operational. Andy Ly replied that the original date of operation was scheduled for October 5, 2017 and noted that the new implementation date was anticipated to be December 2017 which was a two-month delay. He provided a brief overview of the software platforms involved with the integration, noting that there were no case studies for this type of technology as this multi-vendor integration was the first to be done in the nation. The issues included: Multi-ticket purchases on the Metrolink App which did not allow for multiple Transit Access Pass (TAP) entry at optical readers Software and hardware communication / integration delays between the Los Angeles County Metropolitan Transportation Authority (Metro) Information Technology team, with the Cubic and Masabi, LLC vendors. Director Leon indicated that the mobile ticketing project needed to be completed by the end of the year. Arthur T. Leahy expounded on the fact that there were midcourse changes to the project, and that Andy Ly joined the Authority specifically to deliver this project. Staff was progressing towards completion of the project and would continue to report to the Board on its progress. Director Martinez inquired if there were plans for community outreach after integration with the Metro TAP gates. Andy Ly replied that there was a communications outreach plan and staff was working with Metro for coordination. Director Martinez requested details of the plan. Arthur T. Leahy replied that staff would come to the next Board meeting with a report. 2 nd Vice-Chair Najarian indicated that the vendors needed to be reminded that Board was becoming anxious about this project and would not tolerate any more delays as 1 Following the meeting, staff confirmed the requested information: Contract No. H to Masabi, LLC was originally awarded on March 13, On January 15, 2016, the Board approved an amendment to the contract for the development of optical readers. Subsequently, Contract No. SP was awarded on October 28, 2016 to Cubic for the installation and maintenance of optical readers. 8

18 Board of Directors Meeting Minutes October 13, 2017 Transmittal Date: October 20, 2017 Page 9 this was key to the connectivity of both transportation services. He reiterated that the project must be completed by the deadline. Chair Kotyuk questioned if multiple tickets for the same trip could be purchased and used with single phone for entrance onto the Metro system. Andy Ly confirmed that could be done. ACTION: The Board received and filed this report. 17. Chief Executive Officer s Report Arthur T. Leahy provided an update on the following items: Gold Line Status Update A joint committee had been created to help resolve coordination issues. The committee was made up of the Authority, Metro and the Gold Line Construction Authority. Staff would follow up with Board members on the progress of resolving these business concerns. Headquarters Office Space Update The lease for the new office space located at 900 Wilshire had been fully executed. Staff was also working with the Southern California Association of Governments (SCAG) regarding Board meeting space. APTA Marketing Award The Authority received the Grand Prize Ad Wheel Marketing Award for the launch of the mobile ticketing app. 18. Board Members Comments Vice-Chair Humphrey commented that he attended the APTA Annual meeting and was present when the Chief Executive Officer received the Public Transportation Manager of the Year Award as well as the Ad Wheel Award. He expressed that this annual meeting / EXPO was a great opportunity to meet with vendors and thank them for their continued service to the Authority. He mentioned that during the trip there was a tragedy that occurred and one of the vendor s lost his life. He commended Kimberly Yu for reaching out to the vendor s co-workers and family. He reminded everyone that the Authority was more than trains, and that what was valuable to the organization was people, and Kimberly Yu represented the Authority in a very positive way. Director Leon also congratulated Arthur T. Leahy on receiving the prestigious Public Transportation Manager of the Year Award, and for his career in the industry. He also congratulated the Authority on the deployment of the Tier 4 locomotives. Director Leon commented that at a previous Board meeting, staff presented a report on the analysis of rail electrification. He requested that staff return to the Board in a month s time and report on efforts specifically on electrification segments within Los Angeles County. 9

19 Board of Directors Meeting Minutes October 13, 2017 Transmittal Date: October 20, 2017 Page Chair s Comments - Chair Kotyuk reported on the following: 25 th Anniversary event Reminded the Board of the event following the next Board meeting, October 27, 2017 at 11:30 a.m., and encouraged everyone to participate. APTA Annual Meeting / Expo The introduction video that was shown at the APTA Annual Meeting Awards Ceremony was shared with the Board at this time. Employee, Scott Johnson Received an from Scott Johnson, who was mobilized into active duty and would soon be deployed to Afghanistan. He relayed a message that Scott Johnson said hello and thanked everybody for their support as he departed for duty. 20. ADJOURNMENT There being no further business for consideration by the Board, the meeting was adjourned at 11:17 a.m. Respectfully Submitted, Kari Holman Assistant to the CEO/Board Secretary 10

20 TRANSMITTAL DATE: October 20, 2017 MEETING DATE: October 27, 2017 ITEM 6 TO: FROM: SUBJECT: Board of Directors Arthur T. Leahy Adoption of Board and Committee Meeting Dates for Calendar Year 2018 Issue Staff has prepared the Board of Directors and Executive Management and Audit Committee meeting schedule for 2018 in an effort to maintain a regular meeting schedule and avoid schedule conflicts. Recommendation It is recommended that the Board approve and adopt the 2018 Board and Committee meeting schedule, as detailed in Attachment 1. Alternatives The Board may choose to make changes to the proposed meeting dates or adopt a different meeting schedule. Strategic Goal Alignment This report aligns to the strategic goal to improve communications to customers and stakeholders. The meeting calendar alerts the Board members and members of the public to meetings of the Board and Executive Management and Audit Committee (EMAC). Background Board meetings are regularly set on the second and fourth Friday of each month, starting at 10:00 a.m., with the exception of the EMAC, which will occur on the fourth Friday of every even month at 9:00 a.m. Board and Committee meetings currently take place at the Los Angeles County Metropolitan Transportation Authority building, located at One Gateway Plaza, 3 rd Floor, and Los Angeles, CA. Upon finalization of the Headquarters move, the Board meetings will change to that location. The Board calendar will be updated with the meeting location information. On occasion, the time and location of the 11

21 Adoption of Board and Committee Meeting Dates for Calendar Year 2018 Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 2 meetings may change as deemed appropriate for the agenda, and updates will be posted on the Metrolink website at Staff has prepared a regular meeting calendar in an effort to better coordinate schedules and decrease conflicts. The 2018 Board and Committee meeting schedule (Attachment 1) details meeting dates for calendar year Staff has taken into consideration holidays and other agencies meeting schedules, and has altered the schedule where necessary to avoid conflicts by holding only one Board meeting on certain months as noted in the attachment. A budget workshop has also been scheduled for February 9, 2018, as noted on the attachment, to discuss the FY Budget. Additional details for the workshop will be provided in advance. Should the Chair wish to hold an additional workshop for calendar year 2018, the calendar can be revised accordingly. The Authority s headquarter offices will be moving to 900 Wilshire Blvd., Los Angeles, CA spring Dependent upon the schedule moved date to the new location, one or more meetings may be requested to be cancelled to allow sufficient time for staff to have a successful move. The Chief Executive Officer will work with the Chair and Board to request such changes to the Board meeting calendar as appropriate. The Chief Executive Officer will continue to work through the Chair to schedule or cancel meetings as needed. Budget Impact There is no budgetary impact as a result of this report. Prepared by: Kari Holman, Assistant to the CEO/Board Secretary Patricia Torres Bruno Chief Administrative Officer 12

22 METROLINK / SCRRA BOARD AND COMMITTEE MEETING CALENDAR 2018 Attachment 1 January S M T W TH F S May S M T W TH F S September S M T W TH F S Executive Management & Audit Committee 9:00 a.m. and Board of Directors Meeting 10:00 a.m. or immediately following Committee meeting February S M T W TH F S June S M T W TH F S October S M T W TH F S March S M T W TH F S July S M T W TH F S November S M T W TH F S Board Meeting only No Committees will be held SCRRA Holiday Offices will be closed April S M T W TH F S August S M T W TH F S December S M T W TH F S Board Workshop FY Budget IMPORTANT DATES AND FEDERAL HOLIDAYS January 1 New Year s Day January 15 Martin Luther King Jr. February 19 Presidents Day March National League of Cities Congressional City Conference March APTA Legislative Conference May 2 4 SCAG Regional Conference & General Assembly May 28 Memorial Day June APTA Rail Conference July 4 Independence Day September 3 Labor Day September California League of Cities Exposition October 19 Mobility 21 Summit September APTA Annual Meeting October 8 Columbus Day November 11 Veterans Day / Observed November 12 November National League of Cities City Summit November 22 Thanksgiving Day December 25 Christmas MEETING LOCATION: Board / Committee meetings are held at Los Angeles County Metropolitan Transportation Authority (METRO) located at: One Gateway Plaza, 3 rd Floor Los Angeles, CA Metrolink Headquarters are located at: One Gateway Plaza, 12 th FL, Los Angeles, CA Please visit the Metrolink website to confirm meeting dates, times and locations at The month of August is Dark No meetings are scheduled to be held. Approved by the Board:

23 TRANSMITTAL DATE: October 20, 2017 MEETING DATE: October 27, 2017 ITEM 7 TO: FROM: Board of Directors Arthur T. Leahy SUBJECT: Contract No. QM On-Call Audit Services Bench Recommendation to Award BCA Watson Rice LLP; Conrad LLP; Crowe Horwath LLP; Grant Thornton LLP; Vasquez & Company LLP Issue The Authority requires a bench of technically qualified firms to provide on-call audit services. Recommendation It is recommended the Board authorize the Chief Executive Officer to award the following five bench contracts to provide on-call audit service: 1) QM158A-18 BCA Watson Rice LLP 2) QM158B-18 Conrad LLP 3) QM158C-18 Crowe Horwath LLP 4) QM158D-18 Grant Thornton LLP 5) QM158E-18 Vasquez & Company LLP The requested contract term will be for a base period of two years with a single two-year option. The total not-to-exceed amount for the base period of two years for all five contracts is $500,000. The awards are subject to resolution of any protest timely filed. Alternatives The Board may: 1) Modify the amount of the contract funding authorization; or 2) Reject all proposals and direct staff to re-issue the Request for Proposal (RFP). 14

24 Contract No. QM On- Call Audit Services Bench Recommendation to Award Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 2 Strategic Goal Alignment This report aligns with the strategic goal to maintain fiscal sustainability and improve organizational efficiency. Background In May 2012, the Board awarded a bench of four contracts for on-call audit services. Contract Numbers QM138A-12, QM138B-12, QM138C-12, and QM138D-12 were awarded to Brown Armstrong Accountancy Corporation; KNL Support Services; Thompson, Cobb, Bazilio & Associates, P.C., and Wang Professional Corporation, respectively. These contracts were awarded for a base term of three years with a single two-year option. The current contracts will expire on December 31, Procurement Approach The Authority issued a Request for Proposal (RFP) on May 4, The solicitation was posted on the Authority s website, advertised in publications in the five member counties, and notices were sent directly to firms registered on the Authority s website. Thirty-three firms downloaded the solicitation. On June 8, 2017, nine proposals were received from BCA Watson Rice LLP, Conrad LLP, Crowe Horwath LLP, Davis Farr LLP, Grant Thornton LLP, KH Consulting Group, Sjoberg Evashenk Consulting, Inc. TAP International, and Vasquez & Company LLP. Evaluations were conducted in accordance with the Board-adopted Contract Administration and Procurement Policies and Procedures CON-13, Proposal Evaluation. The evaluation team consisted of Authority staff from the Office of the Chief Auditor, a consultant, and an outside evaluator from Los Angeles County Metropolitan Transportation Authority (Metro). Technical proposals were reviewed and scored. After the initial technical proposal review, the five firms listed below met the minimum technical score of 49 points (70%) and proceeded to the interview phase of the evaluation process. The results of the combined technical, interview, and cost scoring are as follows: Firm Technical & Interview Cost Score Total Score BCA Watson Rice LLP Vasquez & Company LLP Conrad LLP Grant Thornton LLP Crowe Horwath LLP

25 Contract No. QM On- Call Audit Services Bench Recommendation to Award Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 3 BCA Watson Rice LLP (BCA) and Conrad LLP met all the requirements of the RFP and were deemed responsive and responsible. Both firms have previously provided audit type services or other type of engagements to the Authority and work performed were satisfactory. BCA is our current incumbent on the bench. Crowe Horwath LLP, Grant Thornton LLP, and Vasquez & Company LLP also met all the requirements of the RFP and were deemed responsive and responsible. Reference checks were conducted with the firms and the result were favorable. All five recommended firms were found to possess unique capabilities, strengths and expertise in the various areas of performance audits (i.e. compliance, operational, internal control, or others), cost proposal analysis, contract audits, information technology audits, and other type of engagements. Having a bench of diverse firms will aid the Authority in targeting specific audits to the firm with the best expertise in that area and will ensure timely completion of simultaneous audits. Disadvantaged Business Enterprise (DBE)/Small Business Enterprise (SBE) Requirements This project is not federally funded; therefore, the DBE/SBE program is not applicable. Budget Impact The amounts for which contract authority is requested are included in the Adopted Operational Budget for FY ($250,000). Funding for subsequent years will be requested through the annual budget or an equivalent process. There is no financial commitment with respect to subsequent years and work will be authorized only if funding is approved. Prepared by: Elisabeth Lazuardi, Senior Manager, Audit Manchi Yi, Principal Contract and Compliance Administrator Elissa K. Konove Deputy Chief Executive Officer 16

26 TRANSMITTAL DATE: October 20, 2017 MEETING DATE: October 27, 2017 ITEM 8 TO: FROM: Board of Directors Arthur T. Leahy SUBJECT: Request for Technical Qualification No. OP Approval of Evaluation Criteria Metrolink Dispatch Services Issue Proposed evaluation criteria have been developed to initiate a Request for Technical Qualification (RFTQ) to retain a qualified firm to provide dispatch services for Metrolink s commuter rail service. Recommendation It is recommended that the Board approve the proposed evaluation criteria detailed in Attachment 1, specifying weighting of 80% for technical qualifications and 20% for cost, to retain a qualified firm to provide dispatch services in support of daily commuter operations. Alternatives The Board may: 1) Revise the evaluation criteria for Dispatch only and release the Request for Technical Qualification No. OP141-18; 2) Instruct staff to prepare an independent cost estimate on contracting out dispatching services based on peer contracts and Metrolink dispatch staffing levels; or 3) Reinstate the prior proposal to have Dispatch as an option to the Train Operator Services Request for Proposals (RFP). Strategic Goal Alignment This report aligns with the strategic goal to maintain fiscal sustainability through the acquisition of dispatch services to ensure a safe commuter experience for Metrolink s passengers. 17

27 Request for Technical Qualification No. OP Approval of Evaluation Criteria Metrolink Dispatch Services Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 2 Background At the September 8, 2017 Board meeting, staff was directed to issue a Request for Technical Qualification for dispatch services. The Authority will assess the contractor s ability to provide dispatch services based on the criteria listed below. The recommended criteria in the Board-adopted Contract Administration and Procurement Policies and Procedures CON-7 for Technical and Cost criteria have been revised from a 70 / 30 Technical / Cost ratio to an 80 / 20 Technical / Cost ratio to place more emphasis on safety. Only contractors who satisfy the first three criteria shown below with an initial minimum score of 35 points will be invited to participate in the next stage of the procurement process. The next stage involves the submission of a technical proposal, an interview, and submission of cost proposals which would then be evaluated. Next Steps Evaluation Criteria: Stage 1 of Technical Qualification Process must score 35 points or higher A. Past experience, qualifications and financial capacity of prime 15% contractor and subcontractors B. Management Approach and Experience of Proposed Staff 10% C. Safety Program 25% Stage 2 of Technical Qualification Process must have a combined score of 52.5 points or higher (Stage 1 + Stage 2 excluding interview) to qualify for an interview D. Technical Proposal 25% E. Interview 5% Total Technical Qualifications Score 80% Proposers must have a combined total score of 56 points or higher (Stage 1 + Stage 2) to open the cost proposal F. Cost Proposal 20% Total Technical Qualifications and Cost Score 100% Once staff completes the technical qualification process and evaluated cost proposals, staff will return to the Board with an analysis and recommendations. The cost proposals will remain confidential. 18

28 Request for Technical Qualification No. OP Approval of Evaluation Criteria Metrolink Dispatch Services Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 3 Budget Impact There is no budgetary impact as a result of this report. Prepared by: Rod Bailey, Deputy Chief Operating Officer, Dispatch and Operator Services Manchi Yi, Principal Contract & Compliance Administrator Gary Lettengarver Chief Operating Officer Elissa K. Konove Deputy Chief Executive Officer 19

29 Request for Technical Qualification No. OP Approval of Evaluation Criteria Metrolink Dispatch Services Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 4 ATTACHMENT 1 Proposed Evaluation Criteria Ranking will be based on a maximum of 100 points as follows: Points A. Past experience, Qualifications, and Financial Capacity of Prime Contractor and Subcontractors 15 Experience managing the dispatching of a substantial (greater than 25 trains per normal scheduled working day) commuter, freight or intercity passenger rail service in the United States and/or Canada. Prime contractor and subcontractor skills and experience on similar or related services, including operation and dispatching of rail service on a daily scheduled basis. Extent and nature of working relationship with Class I and regional railroads, and/or other commuter or intercity rail providers (references). Record of satisfactory performance with other service providers and past and current commuter, freight, or intercity passenger rail clients. Demonstrated regulatory experience in dispatching commuter, freight, or intercity passenger rail service in the United States and/or Canada. Prime contractor s past work experience with government agencies that regulate employment, labor relations, operation or facilities of commuter rail practices in the United States, such as Federal Railroad Administration (FRA), Occupational Safety and Health Administration (OSHA), National Labor Relations Board (NLRB) and Railroad Retirement Board (RRB) or similar regulatory agencies in Canada. Prime and subcontractor s experience working with labor organizations and a working knowledge of General Code of Operating Rule (GCOR) and/or Northeast Operating Rules Advisory Committee (NORAC) operating rules. Prime and subcontractor financial capacity, depth of operations and dispatching support and effective quality programs to manage and support a contract of this nature. Demonstrated ability of parent corporation and its relationship with its subsidiary(s) to provide financial and organizational support during the term of this contract, if applicable. Documentation to include financial statements, proof of insurability, and a commitment from the prime contractor s surety that required performance demonstrates financial capacity of prime contractor and subcontractors in managing and supporting a contract of this nature. B Management Approach and Experience of Proposed Staff 10 Thoroughness of the management approach, clarity of the organizational chart and the roles and responsibilities of the proposed job functions. 20

30 Request for Technical Qualification No. OP Approval of Evaluation Criteria Metrolink Dispatch Services Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 5 Qualifications and experience of the proposed personnel in the mobilization, management, and dispatching of commuter, freight, or intercity passenger rail systems (greater than 25 trains per normal scheduled working days) in the United States and/or Canada. Independence of the proposed general manager to make decisions on a day-to-day basis. C. Safety Program 25 Demonstrate a clear and comprehensive understanding of Title 49 CFR Parts , FRA Safety Advisories, Emergency Orders, GCOR, CPUC General Orders, APTA Industry Standards and OSHA requirements. Demonstrate a clear and comprehensive understanding of FRA 49 CFR Part 270. Thoroughness of the required plans, programs, and procedures and the extent to which these deliverables were customized and applicable to Metrolink. Demonstrated safety performance experience as evaluated using FRA reportable injury ratio per 200,000 man hours for all commuter operations or OSHA recordable injury ratio per 200,000 man hours for all non-fra properties. Clear understanding of the requirements for 49 CFR part 228 for dispatching personnel as well as the requirements for train orders. D. Technical Approach 25 Quality, thoroughness, and structure of proposed technical approach, including but not limited to, comprehensive approach to accomplishing the scope of services, plan for hiring experienced and qualified management staff; hiring, training, certifying and qualifying dispatching employees and plan for hiring other employees in a Positive Train Control (PTC) environment. Reasonableness and comprehensiveness of Mobilization Plan (if applicable), and other plans required for dispatching. Evidence that all required FRA reports are submitted in a complete and timely manner. Demonstrated past experience where the Proposer has maintained a safe work environment per both FRA, OSHA and local California documentation. Demonstration of a comprehensive knowledge of required operating and dispatching services for Metrolink based on proposed scope of services. Understanding the requirements and approach to perform the dispatching functions in a PTC environment. Understanding of the requirements and the approach to execution of training and qualifications program. E. Interview 5 Proposed General Manager and Contractor presentation of the Technical Proposal Contractor responses to questions. 21

31 Request for Technical Qualification No. OP Approval of Evaluation Criteria Metrolink Dispatch Services Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 6 F. Cost 20 Weighted on cost and value as compared to other proposers. 22

32 TRANSMITTAL DATE: October 20, 2017 MEETING DATE: October 27, 2017 ITEM 9 TO: FROM: Board of Directors Arthur T. Leahy SUBJECT: Cooperative Agreement with Orange County Transportation Authority for Laguna Niguel to San Juan Capistrano Passing Siding Project Issue Approval is needed to execute a Cooperative Agreement with Orange County Transportation Authority (OCTA) for provision of the Authority s support services to the construction of the Laguna Niguel to San Juan Capistrano Passing Siding Project on the Orange County Line in the City of Laguna Niguel and the City of San Juan Capistrano. Recommendation It is recommended that the Board authorize the Chief Executive Officer to negotiate and execute Cooperative Agreement No. C between OCTA and the Authority in the amount of $5,507,000 to define roles, responsibilities and funding for construction of the Laguna Niguel to San Juan Capistrano Passing Siding Project on the Orange County Line in the City of Laguna Niguel and the City of San Juan Capistrano. Alternative The Board may request additional information. Strategic Goal Alignment This report aligns with the strategic goal to retain and grow ridership. The addition of the passing siding will reduce existing congestion at the Laguna Niguel/Mission Viejo Metrolink Station, thereby providing more reliable corridor operations and fewer delays on the Los Angeles San Luis Obispo San Diego (LOSSAN) rail corridor. Background OCTA, in coordination with the Authority, the City of Laguna Niguel, and the City of San Juan Capistrano, proposes a 1.8 mile new San Juan Capistrano Passing Siding Project 23

33 Cooperative Agreement with Orange County Transportation Authority for Laguna Niguel to San Juan Capistrano Passing Siding Project Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 2 on the LOSSAN rail corridor. The LOSSAN rail corridor serves Metrolink commuter trains, Amtrak intercity trains, and BNSF Railway and Union Pacific Railroad (UPPR) freight trains and is identified as the second most heavily traveled intercity passenger rail corridor in the nation. The segment of the corridor north of the project between Laguna Niguel and Los Angeles is a double track main-line. A transition to single track occurs just south of the Laguna Niguel/Mission Viejo Metrolink station and the single track continues for miles, until just south of San Clemente. The passing siding project will provide additional capacity and operational flexibility, reducing existing congestion at the Laguna Niguel/Mission Viejo Metrolink Station, thereby providing more reliable corridor operations and fewer delays. The project would not affect the number or frequency of trains operating along the LOSSAN corridor. The proposed project would allow existing train service to pass more quickly within the corridor. The purpose of the passing siding project is to alleviate the current and potential rail traffic impacts on the LOSSAN rail corridor by eliminating duration of train meets. OCTA will manage the main construction contract with the Authority providing signal and Positive Train Control (PTC) system installation, testing and commissioning, and general construction, safety and oversight support. The Authority and OCTA entered into Cooperative Agreement C for the design of the Project on December 4, The design is currently at the 90% level and is anticipated to be complete by the end of Cooperative Agreement C for construction of the Laguna Niguel to San Juan Capistrano Passing Siding Project will allow the Authority to procure a contractor for the railroad signal portion of the project as well as start procurement of long-lead materials. OCTA s Board authorized Cooperative Agreement C on January 23, Budget Impact There is no budgetary impact as a result of this report. Prepared by: Heather Bening, Railroad Civil Engineer II Andy Althorp, Principal Engineer, Project Management Justin Fornelli, Director of Engineering & Construction 24

34 Cooperative Agreement with Orange County Transportation Authority for Laguna Niguel to San Juan Capistrano Passing Siding Project Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 3 Darrell Maxey Deputy Chief Operating Officer (PTC and Engineering) Gary Lettengarver Chief Operating Officer 25

35 TRANSMITTAL DATE: October 20, 2017 MEETING DATE: October 27, 2017 ITEM 10 TO: FROM: SUBJECT: Board of Directors Arthur T. Leahy Festival of Lights Special Train Service Improvements Issue Metrolink train service to the 2016 Festival of Lights (FOL) experienced significant operational challenges which led to very serious passenger delays and inconvenience. At the January 13, 2017 Board meeting, staff presented a debrief and lessons learned. Staff developed improved operational service for the FOL special train to ensure a positive customer experience. Recommendation The Board may receive and file this report. Alternative The Board may request additional information. Strategic Goal Alignment This report aligns with the strategic goal to ensure a safe operating environment and retain and grow ridership. Background In October 2016, Riverside County Transportation Commission (RCTC) requested Metrolink to operate special train service on the 91/Perris Valley to the FOL starting Thanksgiving weekend for four consecutive Friday and Saturday nights. Staff prepared a train schedule using regular Metrolink 700 series trains to Riverside-Downtown for the event and operated two special trains from Riverside-Downtown to Los Angeles and Perris-South via the 91/Perris Valley Line. RCTC and the Mission Inn Hotel & Spa partnered with Metrolink to promote this first time special train service. In addition, the City of Riverside supported the event through community outreach and Riverside Transit Agency (RTA) provided free bus shuttles from 26

36 Festival of Lights Special Train Service Improvements Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 2 the Metrolink Riverside-Downtown station to the Festival of Lights. Extensive marketing and communication efforts promoted the special $7 Festival of Lights tickets sold from the ticket vending machine or the Metrolink App to commuters, leisure riders and families through social media, website, e-promotions newsletter, Metrolink Matters, utility stuffers, and press releases. Operational Challenges Last year nearly 13,000 passengers took Metrolink to see the Festival of Lights. This lead to overcrowding issues on some of our trains, in particular Train 752 (Saturday) from Los Angeles to Riverside-Downtown. Train 752 was the only train to pick up Orange County residents at Fullerton resulting in overcrowding and passengers being turned away for safety reasons. Operations planned to use the extra protect train set in Los Angeles, as a shadow train for Train 752 to handle the additional passengers. In addition, the shadow train service was not a dedicated train and would be used to protect regular Metrolink service. When there was a service disruption on the San Bernardino Line which required to redirect the shadow train to protect peak service on this line, there was no longer a train available to pick up additional passenger on the inbound trips which caused overcrowding and extensive delays. Festival of Lights Trains Service Improvements Given the operational challenges from last year s event, staff has worked with RCTC since July to improve the Festival of Lights train service levels and reliability to address the overcrowding issues and provide a safe operating environment for our customers. Trains dedicated only for the Festival of Lights service will eliminate the possibility of these trains being re-routed to protect the regular Metrolink service in the event of a service disruption. Please see Attachment A which outlines the FOL train service. Service Enhancements: Additional Service to and from the event From 6 special trains to 14 o Los Angeles Union Station to Riverside - Downtown 1 train to event, Friday and Saturday 2 trains returning from event, Friday and Saturday o Perris Downtown to Riverside Downtown 1 train to event, Friday and Saturday 1 train returning from event, Friday and Saturday o Laguna Niguel to Riverside Downtown & Riverside Downtown to Oceanside 1 train to event, Friday and Saturday 1 train returning from event, Friday and Saturday 27

37 Festival of Lights Special Train Service Improvements Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 3 This represents 133% more service than was provided last year. Contingency Plan o Two sweeper trains on hold and ready to go at EMF for return trip service o Equipment will be dedicated to the Festival of Lights special service o Trains can go to Oceanside, Los Angeles or Perris depending on demand Customer Service Staffing o Riverside-Downtown Station RCTC Staff and 2 Metrolink CERs Metrolink CERs can communicate with COMM desk o Los Angeles Union Station Fridays 3 CERs with 3 Job Corps assistance Saturdays 1 CER with 1 Job Corps assistance Metrolink CERs can communicate with COMM desk Additional Job Corp support can be requested o Fullerton Station* 2 Metrolink CERs Metrolink CERs can communicate with COMM desk This station had a lot of crowding last year because it was the only OC stop This year there will be IEOC Line service to help alleviate the load of the 91/PV Line train. *CERs at Fullerton Station may be moved to other stations if needed. Promoting the use of the Metrolink App to avoid long lines at the ticket machines Use of technologies such the newly launched website, Train Tracker to locate your train and use digital platforms Facebook, Twitter and Instagram - to inform customers of any train delays. Customer Outreach After the 2016 Festival of Lights, Metrolink processed 239 cases related to the special train service. As a result, 169 refund requests were approved totaling $3,371, and 544 promotional codes were ed as a goodwill customer service gesture; 42 were redeemed. Staff will reach out to the impacted customers, offering promotional codes to try Metrolink again for the 2017 Festival of Lights. 28

38 Festival of Lights Special Train Service Improvements Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 4 Marketing and Communications Plan Staff is working with RCTC, Orange County Transportation Authority (OCTA) and Los Angeles County Metropolitan Transportation Authority (Metro) to promote the service to the Festival of Lights. The agencies will take a broad outreach strategy including: traditional media, social media, website, on train communications (rack cards and conductor announcements) as well as communications at the platform. Messaging will focus on the ease and value of taking the train to the Festival of Lights. We will also promote the additional service in case there are concerns about issues that were experienced last year. Funding Sources The South Coast Air Quality Management District (SCAQMD) at their October 6 Board meeting, approved funding for a Major Event Center Transportation Program grant to operate the 2017 Festival of Lights train and shuttle bus service. The grant will cover operating costs in the amount of $239,565 which covers Metrolink costs of $163,924 and RTA shuttle bus expenses of $75,641. Budget Impact There is no budgetary impact as a result of this report. Prepared by: Rod Bailey, Deputy Chief Operating Officer, Dispatch and Operator Services Charlene Ariza, Marketing Manager II Gary Lettengarver Chief Operating Officer Patricia Torres Bruno Chief of External Affairs 29

39 Festival of Lights Special Train Service Improvements Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 5 Festival of Lights Train Schedules ATTACHMENT A Trains 756X, 757X, 856X, 855X, 737X, 738X have been added to support the FOL program. From Los Angeles to Riverside 91/Perris Valley Line South Side Platform Day Friday Saturday Train Number / Station X Los Angeles (LAUS) 3:35 PM 3:03 PM Norwalk / Santa Fe Springs 3:56 PM 3:24 PM Buena Park 4:03 PM 3:31 PM Fullerton 4:09 PM 3:37 PM Corona - West 4:35 PM 4:03 PM Corona - North Main 4:41 PM 4:09 PM Riverside - La Sierra 4:50 PM 4:18 PM Riverside - Downtown 5:03 PM 4:31 PM 30

40 Festival of Lights Special Train Service Improvements Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 6 From Los Angeles to Riverside 91/Perris Valley Line North Side Day Friday Saturday Train Number / Station 756X 752 Los Angeles (LAUS) 3:03 PM 3:15 PM Norwalk / Santa Fe Springs 3:24 PM 3:36 PM Buena Park 3:31 PM 3:42 PM Fullerton 3:37 PM 3:49 PM Corona - West 4:03 PM 4:13 PM Corona - North Main 4:09 PM 4:20 PM Riverside - La Sierra 4:18 PM 4:29 PM Riverside - Downtown 4:31 PM 4:52 PM From Riverside to Los Angeles 91/Perris Valley Line South Side Day Friday Friday Saturday Saturday Train Number / Station 757X 759X 757X 759X Riverside - Downtown 8:45 PM 9:00 PM 8:45 PM 9:00 PM Riverside - La Sierra 8:55 PM 9:10 PM 8:55 PM 9:10 PM Corona - North Main 9:03 PM 9:18 PM 9:03 PM 9:18 PM Corona - West 9:09 PM 9:24 PM 9:09 PM 9:24 PM Fullerton 9:31 PM 9:46 PM 9:31 PM 9:46 PM Buena Park 9:37 PM 9:52 PM 9:37 PM 9:52 PM Norwalk / Santa Fe Springs 9:43 PM 9:58 PM 9:43 PM 9:58 PM Los Angeles (LAUS) 10:15 PM 10:30 PM 10:15 PM 10:30 PM 31

41 Festival of Lights Special Train Service Improvements Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 7 From Laguna Niguel to Riverside Inland Empire Orange County Line Day Train number / station Laguna Niguel / Mission Viejo Irvine Tustin Santa Ana Orange Anaheim Canyon Corona - West Corona - North Main Riverside - La Sierra Riverside - Downtown North Side Friday 856X 3:00 PM 3:10 PM 3:16 PM 3:22 PM 3:27 PM 3:33 PM 3:54 PM 4:00 PM 4:08 PM 4:21 PM 32

42 Festival of Lights Special Train Service Improvements Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 8 From Laguna Niguel to Riverside Inland Empire Orange County Line Day Train number / station Laguna Niguel / Mission Viejo Irvine Tustin Santa Ana Orange Anaheim Canyon Corona - West Corona - North Main Riverside - La Sierra Riverside - Downtown South Side Saturday 856X 3:00 PM 3:10 PM 3:16 PM 3:22 PM 3:27 PM 3:33 PM 3:54 PM 4:00 PM 4:08 PM 4:21 PM 33

43 Festival of Lights Special Train Service Improvements Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 9 From Riverside to Oceanside Inland Empire Orange County Line South Side Day Friday Saturday Train number / station 855X 855X Riverside - Downtown 9:15 PM 9:15 PM Riverside - La Sierra 9:26 PM 9:26 PM Corona - North Main 9:34 PM 9:34 PM Corona - West 9:39 PM 9:39 PM Anaheim Canyon 10:01 PM 10:01 PM Orange 10:12 PM 10:12 PM Santa Ana 10:17 PM 10:17 PM Tustin 10:24 PM 10:24 PM Irvine 10:32 PM 10:32 PM Laguna Niguel / Mission Viejo 10:43 PM 10:43 PM San Juan Capistrano 10:51 PM 10:51 PM San Clemente 11:01 PM 11:01 PM San Clemente Pier 11:04 PM 11:04 PM Oceanside 11:31 PM 11:31 PM 34

44 Festival of Lights Special Train Service Improvements Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 10 From Perris South to Riverside 91/Perris Valley Line South Side Day Friday Saturday Train number / station 737X 737X Perris - South 3:55 PM 3:55 PM Perris - Downtown 3:59 PM 3:59 PM Moreno Valley / March Field 4:08 PM 4:08 PM Riverside / Hunter Park / UCR 4:27 PM 4:27 PM Riverside - Downtown 4:35 PM 4:35 PM From Riverside to Perris South 91/Perris Valley Line South Side Day Friday Saturday Train number / station 738X 738X Riverside - Downtown 9:30 PM 9:30 PM Riverside / Hunter Park / UCR 9:42 PM 9:42 PM Moreno Valley / March Field 9:55 PM 9:55 PM Perris - Downtown 10:06 PM 10:06 PM Perris - South 10:15 PM 10:15 PM 35

45 TRANSMITTAL DATE: October 20, 2017 MEETING DATE: October 27, 2017 ITEM 11 TO: FROM: SUBJECT: Board of Directors Arthur T. Leahy Optic Reader Marketing and Communication Plan Issue Staff is updating the Board on the Optic Reader marketing and communication plan. Recommendation The Board may receive and file this report. Strategic Goal Alignment This item aligns with the strategic goal to increase regional mobility and retain and grow ridership as riders will be able to connect with Los Angeles County Metropolitan Transportation Authority (Metro) Rail system using the convenient Metrolink App. Background At the October 13, 2017 Board meeting, questions were raised regarding the communication and community outreach plan for the Mobile and Optical readers project. Staff is providing an overview of the marketing and communications plan as requested. Overview When the Metrolink mobile app was introduced in April 2016, it offered riders the option to skip lines at the Ticket Vending Machines (TVMs) and purchase their passes at their convenience through their smart phone or tablet. When riders purchase tickets through the mobile app, the agency saves money on ticket stock and maintenance of the TVMs is expected to decrease with less usage. Currently, 28% of riders across the system use the mobile app to purchase their tickets. It is expected for that number to increase substantially in December 2017 when an additional 30% of customers who currently transfer to the Metro Rail system would be able to use the mobile app for a seamless and convenient transfer through the Optic Reader program. 36

46 Optic Reader Marketing and Communication Plan Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 2 To ensure riders are aware of the benefits of this new digital ticketing option, the Authority has developed a comprehensive Marketing and Communications Plan. Objectives Increase system-wide adoption of the Metrolink App from 24 to 37% within six months. Educate riders on how to use the app to transfer to Metro Rail via the Optic Reader. Reduce costs associated with printing tickets based on increased mobile adoption rate. (At 45% system-wide adoption rate, the Authority will see cost savings in ticket stock.) Audience Composition Primary Target Audience Current Metrolink Riders 1. Commuters Professionals/students who currently commute to work/school using Metrolink Employed part- and full-time Live near Metrolink stations Ages Destination Riders Riders who have used Metrolink for recreation, but do not have a pattern of frequency Employment status varies, and will include retirees Live near or have access to a Metrolink station or connecting transit Ages Secondary Target Audience Potential New Riders 1. Non-Riders/Potential Commuters Consumers who have the profile to ride, but have not tried due to misperceptions or barriers Employed part- and full-time Live near or have access to a Metrolink station or connecting transit Ages Non-Riders/Potential Destination Riders Consumers who may use Metrolink for recreation, but have not yet tried Employment status varies, and will include retirees Live near or have access to a Metrolink station or connecting transit Ages Key Messages In December, Metrolink riders can use the mobile app to transfer to Metro Rail. 37

47 Optic Reader Marketing and Communication Plan Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 3 App ease of use, convenient, quick, power in the palm of your hand. Visit the Google Play or App Store to download the app, watch the tutorial and get on board! By adding the Optic Readers, the Authority will provide more convenient options for Metrolink riders, while reducing costs associated with ticket printing, TVM maintenance and cash handling. Strategy Broad outreach to educate riders that the mobile app can be used to transfer to Metro starting in December and to provide them instructions on how to use the app to transfer. Reiterate benefits of switching to the mobile app. Hands on approach to provide personal support to riders on board trains and at stations via Street Team. Tactics Communication will launch in November to start promoting this service improvement. There will be communications on board trains, at Metro and Metrolink stations, via traditional, digital and social media. Direct interaction with riders via Street Team. Train wrap Timeline 38

48 Optic Reader Marketing and Communication Plan Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 4 Budget Impact Staff has allocated $151,000 for the marketing campaign and funding was included in the FY operating budget. Prepared by: William Ringland, Marketing Manager, Digital Systems Sherita Coffelt, Director, Public Affairs Elissa K. Konove Deputy Chief Executive Officer 39

49 TRANSMITTAL DATE: October 20, 2017 MEETING DATE: October 27, 2017 ITEM 12 TO: FROM: SUBJECT: Board of Directors Arthur T. Leahy Quarterly Report Bus Bridge Response for Unplanned Service Disruptions Issue Staff is providing an update on alternate bus bridge provider response during the first quarter of Fiscal Year (July-September 2017). Recommendation The Board may receive and file this report. Strategic Goal Alignment This report aligns with the strategic goal to retain and grow ridership, as providing means to complete trips when service is interrupted is critical to retaining ridership. Background At the October 28, 2016 board meeting, the Board approved continuation of the Incident Management Response Improvement Plan and revisions to Metrolink s Quality Service Pledge. Since then, staff has continued to work to improve bus bridge response and communication during service disruptions. The Board requested regular updates on service recovery and this report is for the first quarter of FY (FY18) - July through September Service Disruption and Bus Response Summary During the first quarter of FY18, there were a total of 27 incidents necessitating unplanned bus bridge support. There were a total of 85 requests for support; 28 (33%) of those requests resulted in buses arriving to passengers in an hour or less; 19 (22%) resulted in buses arriving to passengers more than an hour after initial call; and the remaining 38 (45%) requests were declined or unavailable. Please see Attachment A FY18 Bus Bridge Response Summary for more details. The top reasons bus companies said they 40

50 Quarterly Report Bus Bridge Response for Unplanned Service Disruptions Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 2 were unable to assist were due to a lack of manpower (bus operators) (15 times; 39%) followed by lack of equipment (13 times; 34%). As additional detail, 22 of the 85 total requests were made to private operators; 19 (86%) were declined or unavailable. Due to the nature of service, private vendors are typically the resource for planned outages, as they do not have regular drivers or extra equipment on standby to more readily support during unplanned outages. 63 of the 85 total requests were to public operators; 19 (30%) were declined or unavailable. Please see Attachment B Reasons Operators Unable to Assist for more details. Major Service Disruptions and Recovery Details JULY 2017 In July 2017, Metrolink experienced 8 service disruptions with the most impactful caused by a Union Pacific Railroad (UPPR) derailment in the Antelope Valley, affecting Antelope Valley and Orange County line service Saturday, July 15 through Sunday, July 16. To summarize, tracks were closed between Vincent Grade/Acton and Via Princessa, causing delays and cancelation on the Orange County and Antelope Valley Lines. Amtrak protected Orange County Line service and a bus bridge was established for the Antelope Valley Line. Initially, passengers experienced lengthy delays, some up to 4 hours. Due to the time and location of the incident, availability of the bus companies, and need for ongoing service, staff was able to secure some bus support from Antelope Valley Transit Authority (AVTA) and Los Angeles County Metropolitan Transportation Authority (Metro), with executives working together to provide the balance. AUGUST 2017 In August 2017, Metrolink experienced 11 service disruptions with the most impactful caused by a track wash-out in Antelope Valley, affecting Antelope Valley Line service Thursday, August 3 and Friday, August 4. To summarize, tracks were closed between Via Princess and Vincent Grade/Acton. Many passengers experienced lengthy delays, some as long as 5 hours. Due to the time and location of the incident, availability of the bus companies, questionable integrity of the track, and availability of travel routes (freeway closure), staff was able to secure some bus support from Metro; executive staff eventually secured additional support from AVTA and Santa Clarita Transit. Access service was also used to assist Access card holders who missed connections. 41

51 Quarterly Report Bus Bridge Response for Unplanned Service Disruptions Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 3 SEPTEMBER 2017 In September 2017, Metrolink experienced 9 service disruptions with the most impactful caused by a trespasser strike immediately followed by a body on the tracks, both near Metrolink s Central Maintenance Facility, affecting all afternoon departures out of Los Angeles Union Station on Thursday, September 14. To summarize, tracks were closed between Glendale and Los Angeles Union Station for a trespasser strike. A bus bridge was established with support provided by the City of Glendale and Metro; the longest delay to passengers was just over one hour. Just as the tracks were cleared for service resumption, a second incident affected the same segment of track, causing delays up to 3 hours. Bus bridge support was not requested for the second incident due to the volume of passengers, time of day, and ever-changing conditions and ability to move equipment out of the yard and to Union Station. Service Recovery Improvements Over the last year, staff has worked to improve service recovery and coordination by investigating service guarantee options and opportunities to improve the Memorandum of Understandings (MOUs), adding new support vendors, and improving Standard Operating Procedures. Staff along with members of the executive team met with counterparts at supporting transit agencies to discuss service recovery improvement options. On the forefront was investigation into service guarantee options. As one example, AVTA proposed an option to transfer ownership of older buses to the Authority, however the option was not feasible due to several issues, mostly pertaining to insurance and liability. AVTA is now working on a proposal for a retainer-base option using contingency fleet. Staff also conducted outreach to expand the Authority s bus bridge support base. In October 2016, staff reached out to 12 different public transit companies who operated in Metrolink service area but did not have an agreement for emergency transportation support. The outreach resulted in the addition of 1 new transit operator, the City of Glendale, who signed an agreement with the Authority in February Since then, they have provided support for three out of three requests. In January 2017, a Request for Interest was posted seeking operators with fleet vehicles of various size to provide emergency transportation support to Metrolink passengers. The Authority received a total of 4 responses, resulting in the addition of 2 motor coach vendors, Sureride Charter and US Coachworks. Most recently, as of September 27, Lyft has been added as an emergency transportation support partner, resolving individualized alternate transportation options for Metrolink riders impacted by disruptions. Staff is being trained and use of the service will be 42

52 Quarterly Report Bus Bridge Response for Unplanned Service Disruptions Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 4 immediately implemented for alternative transportation needs at all Metrolink stations, including Los Angeles Union Station. In addition to outreach, adjustments were made internally to streamline bus bridge communication and coordination. In November 2016, staff coordinated with the supporting operators to develop a Standard Operating Procedure (SOP), including a detailed escalation contact list, to effectively communicate and escalate bus bridge needs during service disruptions. This enhancement has proved valuable, as several of the support requests were met by elevated communication and coordination. There have also been organizational changes to streamline the process. The Communications Desk staff who coordinates bus bridge support, and delivers service communications to passengers via Twitter and station Customer Information System (CIS) have been realigned to report directly to Dispatch Operations, thus improving service recovery communication and coordination, and management of the agreements. Staff is having ongoing dialogue to debrief, discuss service response opportunities, review MOUs, and maintain open communication and positive relationships with the operators that provide support. Next Steps Staff will continue to work with operators and vendors to maintain or improve responsiveness. Updates will be provided to the Board on a quarterly basis. Budget Impact There is no budgetary impact as a result of this report. Prepared by: Rachel Chaires, Senior Manager, Customer Relations Patricia Torres Bruno Chief of External Affairs 43

53 KEY NO RESPONSE RESPONSE TIME OVER 1 HOUR RESPONSE TIME WITHIN 1 HOUR NO REQUEST MADE Attachment A Incident Date Day of Week Time of Incident Incident Information Reason for Bus Bridge County Number of PAX bused Bus Bridge Start Bus Bridge End Bus bridge Response 7/1/2017 Sat 10:40 AM ML354 mechanical San Bernardino 60 RIA SNB 354 :18 :18 7/2/2017 Sun 7:49 AM BNSF struck Vehicle Riverside 30 SNB OSD 859 :58 :58 7/5/2017 Wed 8:14 AM BNSF struck Trespasser Riverside 48 LSR RVS 800 1:01 1:01 RVS CYN 813 1:19 1:19 7/15/2017 Sat 2:45 AM Los Angeles 520 VPR VIN All AV line trains 3:00 3:00 UP derailment 7/16/2017 Sun 2:45 AM Los Angeles 675 VPR VIN Lifeline service trains N/A N/A 7/24/2017 Mon 2:33 PM ML 402 trespasser strike Riverside 230 ONT RVS 402 :46 :46 RVS LAUS 411 1:44 1:44 7/26/2017 Wed 8:52 AM Fullerton elevator OOS Orange 0 FUL FUL N/A 0:00 0:00 7/28/2017 Fri 11:00 AM UP Derailment Los Angeles N/A LAUS MNT Canceled N/A N/A Avg response time (est.) 1:46 1: Montly total PAX on trains bused (est.) Response Rate 100% 50% 0% 0% 0% 100% 0% 100% 100% 67% 0% 0% 50% 0% 0% 0% Trains Bused Min response time (est.) Max response time (est.) AVTA City of Santa Clarita Transit Foothill Transit Gold Coast Transit Public Agencies Glendale Beeline LACMTA North County Transit District OCTA Omnitrans Riverside Transit Agency Simi Valley Transit H&L Charter Inland Empire Stages Transit Systems Unlimited Sureride Charter US Coachworks 8/3/2017 Thu 5:11 PM 1578 VPR LCS 215 to 227 6:30 Track washed out Los Angeles ML200 and 202 were annulled 8/4/2017 Fri N/A N/A N/A but no buses used. N/A N/A 8/5/2017 Sat 10:23 PM ML379 struck vehicle Los Angeles 165 BWP LAUS 379 N/A N/A LAUS SNB 378 N/A N/A 8/7/2017 Mon 8:52 AM Fullerton elevator OOS Orange 0 FUL FUL N/A 0:00 0:00 8/9/2017 Wed 7:51 AM UP freight struck trespasser Los Angeles N/A NHL LAUS 203 terminated- 210 annulled. Buses canceled N/A N/A 8/8/2017 Tue 7:40 AM ML731 Mechanical Riverside 25 RVS SPS 732 :15 :15 SPS RVS 733 0:30 1:00 8/12/2017 Sat 3:46 PM ML265 mechanical Los Angeles 305 VIN LCS 265 1:00 1:12 265/267 double-set 0:51 0:51 LGN OSC 803 0:40 4:00 OSC RVS 800 1:00 3:00 Annulled but no buses used 8/15/2017 Tue 5:08 AM ML601 struck trespasser Orange (Avg. 451 pax) N/A N/A N/A N/A 600 (avg 207 pax) 605 (avg 583 pax) 8/17/2017 Thu 8:52 AM Fullerton elevator OOS Orange 0 LGN LGN N/A (elevator) 0:00 0:00 8/23/2017 8/31/2017 Wed Thu 8:11 PM 11:00 AM ML225 struck trespasser ML733 terminated due to brush fire Los Angeles Riverside SUV MOV LCS RVS :30 0:34 2:45 0: SUV RVS LCS SPE :00 0:06 2:45 0:06 Flash flood warning may annull 800- None. Warning lifted. Buses 8/31/2017 Thu 4:15PM 700 line trains Riverside 0 RVS SNB/SPE canceled after their arrival 0:017 0:017 Avg response time (est.) 0:39 1: Montly total PAX on trains bused (est.) Response Rate 40% 100% 0% 0% 0% 80% 0% 100% 0% 75% 0% 0% 0% 25% 0% 0% 9/1/2017 Fri 7:17 AM ML106 mechanical Los Angeles 80 MPK LAUS 110 1:07 1:07 63 CWT LAUS 106 (Delayed further due to Amtrak fatality) 1:20 3:40 10:01 AM Amtrak 763 struck trespasser 12 NTH CWT 107 1:00 1:30 10 CWT LAUS LAUS OSD 660 (pax boarded Amtrak 768, only pax for non Amtrak stops 0:23 0:30 9/4/2017 Mon 8:09 AM ML660 and 663 annulled mechanical Los Angeles & Orange 52 were bused) 200 OSD LAUS 663 (Pax boarded Amtrak after Metro refusal 0 0 9/5/2017 Tue 4:00 AM BNSF struck trespasser FUL LAUS 681 1:14 1:14 Orange and Los 84 FUL & NLK LAUS 681 2:04 2:04 Angeles 43 LAUS RVS 700 0:55 0:55 9/14/ LAUS GDL LAUS GDL 109 Thu 11:34 AM ML112 struck trespasser 45 GDL LAUS 116 0:15 1:15 44

54 Incident Information Bus bridge Response Public Agencies Incident Date 9/14/2017 Day of Week Time of Incident Reason for Bus Bridge County Los Angeles 9/14/2017 Thu 2:20 PM 155 Struck trespasser Los Angeles 9/15/2017 Fri 5:48 AM Body found on tracks/upl Los Angeles Number of PAX bused Bus Bridge Start 35 GDL LAUS GDL LAUS GDL LAUS 218, 220, LAUS GDL 115, LAUS VPR 213, 215 9/21/2017 Thur 1:30 PM Late turn due to mech San Bernardino 40 SNB OSC 815 N/A N/A 9/22/17 Fri 7:40PM ML335 struck trespasser Los Angeles 2976 RCM Bus Bridge End MCL Trains Bused 307, 309, 311, 313, 315, 317 Min response time (est.) 0:30 Max response time (est.) 3:00 1:00 2:30 54 LAUS BWP 334 0:17 0:17 0 BWP LAUS 335 0:45 0:45 Avg response time (est.) 0:45 1: Montly total PAX on trains bused (est.) Response Rate 0% 0% 100% 100% 100% 87% 0% 100% 67% 100% 0% 0% 0% 50% 0% 0% AVTA City of Santa Clarita Transit Foothill Transit Gold Coast Transit Glendale Beeline LACMTA North County Transit District OCTA Omnitrans Riverside Transit Agency Simi Valley Transit H&L Charter Inland Empire Stages Transit Systems Unlimited Sureride Charter US Coachworks Total response within an hour Total response over an hour Total response unable to assist Total requests FY18 Response Rate % 67% 33% 67% 100% 87% 0% 100% 62% 75% 0% 0% 12% 25% 0% 0% 45

55 Attachment B During the first quarter of FY18, July through September 2017, there were a total of 27 incidents necessitating unplanned bus bridge support, 3 of which were due to elevator outages. There were a total of 85 calls for support: 28 of those requests saw arrival to passengers in an hour or less; 19 saw arrival to passengers more than an hour after initial call; and the remaining 38 requests were declined or unavailable. Public Transit Agencies Private Vendor Reasons Operators Unable to Assist FY18 - Quarter 1 July 1, 2017-September 30, 2017 Total requests made Total declined Declined % Simi Valley % Foothill Transit % AVTA % Omnitrans % Reason(s) No manpower (1 time) No equipment (1 time) No answer (1 time) No manpower (1 time) No answer (1 time) No answer (3 times) Strike (1 time) No manpower (2 times) Destination too far, not enough fuel (1 time) Santa Clarita % No equipment (1 time) manpower (1 time) Gold Coast Transit % No equipment (1 time) RTA % No manpower (1 time) No equipment (1 time) Metro % Out of the area of service (1 time) No manpower (1 time) Glendale Beeline 3 0 0% OCTA 6 0 0% H&L Charter % No equipment (3 times) No manpower (3 times) Inland Empire Stages % No equipment (3 times) No manpower (4 times) No equipment (3 times) TSU % No manpower (1 time) No answer (2 times) Sureride Charter 0 0 0% US Coachworks 0 0 0% No 46

56 TRANSMITTAL DATE: October 20, 2017 MEETING DATE: October 27, 2017 ITEM 13 TO: FROM: Board of Directors Internal Audit Department SUBJECT: Internal Audit Corrective Action Status Update Quarter Ending September 30, 2017 Issue The following status of all audit related corrective actions being monitored and tracked by the Internal Audit is provided for informational purposes. Recommendation The Board may receive and file this report. Strategic Goal Alignment This report aligns with the strategic goal of Improve Communications to Customers and Stakeholders. Background At the July 28, 2017 Board of Directors meeting, Internal Audit was directed to provide the Board with quarterly updates on the corrective action status related to all past Audit (Internal & External) recommendations. Internal Audit has prepared the attached (Attachment A) matrix for the quarter ended September 30, Corrective Actions that were closed as of June 30, 2017 will not be reflected on this attachment. Internal Audit will continue to roll this matrix forward on a quarterly basis for Board reporting purposes. Budget Impact There is no budgetary impact as a result of this report. Prepared by: Elisabeth Lazuardi, Senior Manager, Audit 47

57 Internal Audit Corrective Action Status Update Quarter Ending September 30, 2017 Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 2 Elisabeth Lazuardi Senior Manager, Audit 48

58 Internal Audit Department CORRECTIVE ACTIONS STATUS As of September 30, 2017 Attachment A Project# Audit Type / Title Recommendation Corrective Action Plan (CAP) Department IA Performance Audit: Audit of Employee Pay Rates and Paid Time Off Recommendation 3: Enhance the HR Policy concerning the employee introductory period. INTERNAL AUDITS In Progress HR to review policy pertaining to candidates who compete for open, vacant positions while concurrently fulfilling the introductory period of their current position. Report Date Target Date Human Resources 4/22/ /27/ IA Performance Audit: Audit of Employee Pay Rates and Paid Time Off Recommendation 5: Evaluate staffing level for payroll administration function. Implemented Management will review the payroll administration function to determine proper staffing levels. Finance & HR 4/22/2016 6/30/ /31/2016 3/31/2017 6/30/ SR CEO Request Recommendation 3: Review of Corporate Credit Finalize the draft policy FIN 8.9 Credit Cards and require training on the policy to Card Activities users and their managers. Implemented Management to develop a credit card policy, communicate the policy to affected staff and provide training on credit card usage. Finance 10/25/ /30/2016 3/31/2017 6/30/ IA Performance Audit: Shared Use Agreements (SUA) Revenue Process Recommendation 1: Management should establish a dedicated group to oversee railroad agreement services. Group should include experienced and knowledgeable employees, assign clear roles and responsibilities, and delegate authority. In Progress 10/5/2017 Development of working group (staff from Planning, Finance, Operations, Legal, Audits, Contracts and other dpts. as needed. Working group will review and discuss SUA issues and meet quarterly. Management will also analyze staffing needs in Nov 2017 as part of FY 2019 Budget). Planning & Development / Planning & Project Delivery 7/12/ /30/ IA Performance Audit: Shared Use Agreements (SUA) Revenue Process Recommendation 2: SCRRA management develop and implement policies and procedures or standard operating practices for SUA management and administration to achieve the SUA objectives effectively and efficiently. In Progress 10/5/2017 Management will write two different sets of Policies and Procedures (one addressing financial administration and the other addressing more general agreement management). The Finance group Policy & Procedure will be more in the form of an instructional desktop manual. See Recommendation 5. Planning & Development / Planning & Project Delivery, Finance and Operations 7/12/2017 2/28/

59 Internal Audit Department CORRECTIVE ACTIONS STATUS As of September 30, 2017 Project# Audit Type / Title Recommendation Corrective Action Plan (CAP) Department IA Performance Audit: Shared Use Agreements (SUA) Revenue Process Recommendation 3: Management should review the master lists of SUA for accuracy and completeness as necessary annually, and share the lists within relevant SCRRA departments to ensure that all SUA revenues have been billed and collected. In Progress 10/5/2017 Management to update master list and engage multiple dpts to update it annually. The list will cross reference documents related to SUAs stored in a central location. 1. Current Master List will be modified with sections to include current SUA agreements in process of being modified; new agreements needing to be done; and future agreements that will be required for future services (i.e.. High Speed Rail, Hybrid Rail, etc.). 2. An e mail will be sent to various stakeholders with a copy of the latest list of agreements and summarizes by Line (or Subdivision). This e mail will also identify where to find the agreements in the various SCRRA Drives. Copies of agreements can be provided on thumb drives for those that don t have access to our drives (member agency staffs). Planning & Development / Planning & Project Delivery Report Date Target Date 7/12/2017 9/1/ /10/ /24/ IA Performance Audit: Shared Use Agreements (SUA) Revenue Process Recommendation 4: Management, in collaboration with the Human Resources Department, should develop the record management policies and procedures for SUA and other relevant documentation and maintain all SUA documentations in the central electronic drive or folder completely, safely, and logically for easy access and use. In Progress Planning & Development / 1. Management will refine its existing document storage filing Planning & Project Delivery system in the short term existing shared drives by November 1, Management will work with HR to implement long term document storage & management solutions for a more comprehensive set of agency wide documents. 7/12/ /1/ /30/ IA Performance Audit: Shared Use Agreements (SUA) Revenue Process Recommendation 5: The Finance Department management continue to update the Finance Policies and Procedures or develop standard operating procedures for revenue billing, accounts receivable, and collections procedures, including SUA revenue. In Progress Management has updated 9.1 as of May 12, Additional policies related to revenue, billing, and collections will be updated by end of next fiscal year. AR Collections/Finance 7/12/2017 6/30/ /10/2017 Plan to begin working on the recommendations in December 2017 due to year end close. 50 2

60 Internal Audit Department CORRECTIVE ACTIONS STATUS As of September 30, 2017 Project# Audit Type / Title Recommendation Corrective Action Plan (CAP) Department IA Performance Audit: Shared Use Agreements (SUA) Revenue Process Recommendation 6: The Finance Department management continue to develop detailed billing procedures, including billing timeframe when the invoice timeframe in the agreements is unavailable (see Recommendation 5). In Progress Management has updated 9.1 as of May 12, (1) Additional policies related to revenue, billing, and collections will be updated by June 30, (2) Procedural documentation is currently being updated for Shared Use agreement invoicing and collections will also be completed by June 30, /10/2017 Plan to begin working on the recommendations in December 2017 due to year end close. Report Date Target Date AR Collections/Finance 7/12/2017 6/30/ IA Performance Audit: Shared Use Agreements (SUA) Revenue Process Recommendation 7: In Progress The Finance Department management continue to develop detailed internal Management has updated 9.1 as of May 12, Additional collection procedures, review the SUA receivable aging report monthly, and follow policies related to revenue, billing, and collections will be updated by the internal collection procedures (see Recommendation 5). June 30, Procedural documentation is currently being updated for Shared Use agreement collections, review of aging, and disputed to be completed by June 30, /10/2017 Plan to begin working on the recommendations in December 2017 due to year end close. AR Collections/Finance 7/12/2017 6/30/ IA Performance Audit: Shared Use Agreements (SUA) Revenue Process Recommendation 8: The Finance Department management develop detailed procedures for credit memo issuance and approval process. The procedures should include approval authorization limit and a review requirement by appropriate personnel in Operations to verify SUA related invoices adjustments or billing disputes (see Recommendation 5). In Progress Management has updated 9.1 as of May 12, Finance staff will complete an analysis to identify credit memo authorization limits and review process. 10/10/2017 Plan to begin working on the recommendations in December 2017 due to year end close. AR Collections/Finance 7/12/2017 6/30/ CA Contract Audit: Recommendation 1: Amtrak Metrolink Contracts and Procurement Dpt should initiate discussion with Amtrak to clarify Operator Services Contract Amtrak s understanding of Management Fee, Overhead, and Profit in the contract No. OP and seek recovery of all excess charges for this audit period and all other contract periods of performance. In Progress Contracts and Procurement to meet with Amtrak to negotiate these rates. Contracts & Procurement Dispatch & Operator 8/1/ /31/

61 Internal Audit Department CORRECTIVE ACTIONS STATUS As of September 30, 2017 Project# Audit Type / Title Recommendation Corrective Action Plan (CAP) Department CA Contract Audit: Amtrak Metrolink Recommendation 2: Dispatch and Operator Services Dpt. and Contracts and Procurement Dpt. review In Progress Management will meet with Amtrak to clarify Amtrak's position. Operator Services Contract contract provisions with Amtrak management to clarify Amtrak s position, request Conditional upon clarification from Amtrak Management, SCRRA No. OP Amtrak to recalculate their G&A by eliminating all non Metrolink related cost, and Management will request Amtrak recalculate their G&A for all seek recovery of any unallowable and unallocable charges for this audit period and all other contract periods of performance. contract periods and seek recovery if there is an identification of unallowable & unallocable charges. Contracts & Procurement Dispatch & Operator Report Date Target Date 8/1/ /31/2017 In the event of a new RFP for operator services, a fixed fee contract will be pursued CA Contract Audit: Recommendation 3: Amtrak Metrolink Dispatch and Operator Services Department and Contracts and Procurement Operator Services Contract Department, for future contracts, should review and define, in advance, the No. OP elements of a contractor s G&A that benefit Metrolink Operator Services and therefore chargeable. In Progress See Above Corrective Action Plan for Recommendation #2. Contracts & Procurement Dispatch & Operator 8/1/ /31/ CA Contract Audit: Recommendation 4: Amtrak Metrolink Dispatch and Operator Services Dpt. and Contracts and Procurement Dpt. should Operator Services Contract review the Amtrak contract to determine whether it is possible to seek recovery No. OP from Amtrak for unreasonable indirect costs for layover. In Progress Management to review possibility of seeking recovery from Amtrak for any unreasonable indirect costs. SCRRA Management will negotiate with Amtrak to the extent allowable under current contract to lower admin. Charge for layover services (or consider other options such as outsourcing). Contracts & Procurement Dispatch & Operator 8/1/ /31/2017 In the event of a new RFP for operator services, a fixed fee contract will be pursued CA Contract Audit: Recommendation 5: Amtrak Metrolink In all future negotiations with Amtrak, Dispatch and Operator Services Operator Services Contract Department and Contracts and Procurement Department should negotiate a No. OP lower administration charge for layover or consider deleting the contract provision for this service and have SCRRA internally administer this service. In Progress See Above Corrective Action Plan for Recommendation #4. 8/1/ /31/

62 Internal Audit Department CORRECTIVE ACTIONS STATUS As of September 30, 2017 Project# Audit Type / Title Recommendation Corrective Action Plan (CAP) Department CA Contract Audit: Amtrak Metrolink Recommendation 6: Dispatch and Operator Services Department and Contracts and Procurement In Progress See Above Corrective Action Plan for Recommendation #4. Operator Services Contract Department should review the existing Amtrak contract and pending contracts to No. OP determine whether there are excessive pass through conditions and correct them. Report Date Target Date 8/1/ /31/ CA Contract Audit: Recommendation 7: Amtrak Metrolink Dispatch and Operator Services Department and Business Management should Operator Services Contract request supporting documents and implement the necessary procedures to No. OP ensure labor charges and cellphone usage charges billed to SCRRA are accurate. In Progress Internal process for monitoring wage labor is currently in development and on schedule. Cellular issue solution implemented. In the event of a new RFP for operator services, a fixed fee contract will be pursued. In Progress SCRRA Management has reached out to Amtrak to initiate the process of developing required reports for an engineer and conductor registry. Follow up on this item is scheduled for the next monthly meeting with Amtrak. Dispatch & Operating Services Business Management 8/1/ /31/2017 (Internal process developed) 7/1/2020 New fixed fee contract CA Contract Audit: Recommendation 8: Amtrak Metrolink Dispatch and Operator Services Department and Amtrak should develop an Operator Services Contract approved engineer and conductor registry with totals to act as the baseline and No. OP control number. For future backfills, Amtrak should submit to Dispatch and Operator Services Department and Business Management the supporting documents for each new chargeable backfill event to assure that the backfill charge is appropriate. Dispatch & Operating Services Business Management 8/1/2017 7/1/

63 Internal Audit Department CORRECTIVE ACTIONS STATUS As of September 30, 2017 Project# Audit Type / Title Recommendation Corrective Action Plan (CAP) Department CA Contract Audit: Amtrak Metrolink Operator Services Contract No. OP Recommendation 9a g: Dispatch and Operator Services Department and Contracts and Procurement Department should: a.) Emphasize a safety first approach and compliance with GCOR Duties for Crew Members above all other duties. b.) Meet with Amtrak to address the passengers count data difference between the Scan Reporting and the Daily Delay Reports. Ensure that correct reports with accurate data are used to monitor the percentage of ticket scanned by conductor and train number. c.) Instruct Amtrak to scrub errant data caused by scanner system outages. d.) Notify Amtrak that conductors failing to achieve the 25% ticket scanning requirement or failure to enter train number to the reports should be counseled and informed they are subject to the Amtrak Discipline Policy. e.) Instruct Amtrak to track incidence of conductor fare compliance discipline and periodically report those incidences, along with the counseling or disciplining actions, to Dispatch and Operator Services Department. f.) Notify Amtrak that they should regularly inspect the scanners to ensure operability; non operable scanners should be reported on daily delay report and returned for repair. g.) Notify Amtrak that SCRRA will hold Amtrak responsible for failure to engage in conductor counseling or disciplining actions. In Progress A new application for delay reporting is currently in place. Best practices have been developed. Monthly standing meetings with Amtrak are also in place. Topics of discussion include but not limited to: 1. T&E Non Compliance in the area of Fare Enforcement, Delay Report submittals, Rule Violations & Faulty Scan device equipment. 2. Monthly reports in the area of Scanning Passengers, failing to enter train numbers, Delay submissions, Customer Complaints, PTC Braking events and excessive speed in SCRRA vehicles are provided to Amtrak for corrective actions. 3. SCRRA has implemented procedures to address T&E staff noncompliance of ML Supplemental Instructions. The Operations Administrator will closely monitor, track and investigate all minor infractions. Substantiated infractions will be subject to progressive disciplinary actions to include warnings up to and including bar from service. Dispatch & Operating Services Business Management Report Date Target Date 8/1/ /31/

64 Internal Audit Department CORRECTIVE ACTIONS STATUS As of September 30, 2017 Project# Audit Type / Title Recommendation Corrective Action Plan (CAP) Department CA Contract Audit: Recommendation 10: Amtrak Metrolink Dispatch and Operator Services Department require Amtrak to comply with the Operator Services Contract contractual requirement to provide a list of all changes each fiscal year (additions, No. OP deletions, or transfers) to the inventory of equipment, materials, controllable items, and fixed assets paid for by SCRRA. Report Date Target Date 1 Dispatch & Operating Services 8/1/ /31/

65 Internal Audit Department CORRECTIVE ACTIONS STATUS As of September 30, 2017 Project# Audit Type / Title Recommendation Corrective Action Plan (CAP) Department CA Contract Audit: Parsons Contract H Finding 1: Change Management Negotiation Process Lacks Adequate Segregation of Duties "Checks & Balances" Condition 1a: Inadequate Contract Administration Change Order Consultation and Concurrence and lack of a requirement for Contract Administrator participation in the negotiation process. Recommendation: PTC, C&S & Engineering Dpt should comply with SOP No PC 7.0 immediately. consult with the Contract Administrator for all change orders during the negotiation process and gain their concurrence. Ensure that FCEs and TIA are prepared in advance of the negotiation as recommended by FTA Best Practices. For Unique Change Orders, consult with legal counsel, and the CEO to ensure that the contract is properly managed and checks and balances are in place. Also enhance PMO SOP PC 7.0 to ensure that the Contract Administration of Contracts and procurements Department has a role in the negotiation process beyond just consultation. Partially Implemented 1. Formalize understanding of what a signature on routing sheet means. Consists of four (4) primary steps: a. Draft Scope b. Review Legal Definitions; meet with impacted Dpts c. Draft Policy d. Review with Audit 2. Review and revise as appropriate the sequence of review signatures and the placement of sign off forms within the change order document package. 3. Have monthly meeting with Contracts & Procurement Dpt. to discuss change orders and ensure these are handled efficiently and timely. 4. Invite Contracts & Procurement Dpt. to all negotiation sessions and document their participation on non participation. 5. Develop monetary thresholds for the mandatory inclusion of the CA in negotiation and timelines. 6. Update PMO SOP No. PC 7.0 to include above. 7. Train staff on these requirements. PTC, C&S & Engineering Planning & Project Delivery Business Management Report Date Target Date 3/9/ a. 9/30/2017 b. 10/31/2017 c. 11/1/2017 d. 1/31/

66 Internal Audit Department CORRECTIVE ACTIONS STATUS As of September 30, 2017 Project# Audit Type / Title Recommendation Corrective Action Plan (CAP) Department CA Contract Audit: Parsons Contract H Finding 1: Change Management Negotiation Process Lacks Adequate Segregation of Duties "Checks & Balances" Condition 1b: Out of Scope Change Orders Recommendation: See above Implemented 1. Will contact CA to determine lead time requirements for any need that may be out of scope. 2. Adequately describe the urgent nature and mark as urgent all future urgent change orders. 3. Update PMO SOP No. PC 7.0 to include above. 4. Train staff on these requirements. PTC, C&S & Engineering Planning & Project Delivery Report Date Target Date 3/9/2017 7/1/ CA Contract Audit: Parsons Contract H Finding 1: Change Management Negotiation Process Lacks Adequate Segregation of Duties "Checks & Balances" Condition 1c: Non compliant Independent Fair Cost Estimates and Time Impact analysis Recommendation: See above Implemented 1. In cases of new technologies or very complex projects, the program manager will inform the CA of the difficulty of developing then managing the specifications and need to work in collaboration with the contractor. The Program Management and CA work together to assure that independence is maintained and there is no appearance of a compromised negotiation process; 2. Update PMO SOP No PC 7.0 to include the above; 3. Train staff to these requirements. PTC, C&S & Engineering Planning & Project Delivery 3/9/2017 7/1/ CA Contract Audit: Parsons Contract H Recommendation 2: Implemented PTC, C&S amd Engineering Department establish and implement formal policies 1. Program Management will work with the Finance Department and and procedures for CEO directed Limited Notice to Proceed with the joint efforts Grants to develop approval forms documenting fund availability for with the Contracts and Procurements Department and the Finance Department to previously restricted items. assure that funds are clearly available when deferred work is advanced. 2. Update PMO SOP No. PC 7.0 to include the above. 3. Train staff on these requirements. PTC, C&S & Engineering Planning & Project Delivery 3/9/2017 7/1/

67 Internal Audit Department CORRECTIVE ACTIONS STATUS As of September 30, 2017 Project# Audit Type / Title Recommendation Corrective Action Plan (CAP) Department CA Contract Audit: Parsons Contract H Recommendation 3: Implemented PTC, C&S and Engineering Dpt. Develop formal policies and procedures to control 1. Discontinue the use of the term "Internal Administrative Change and monitor the use of Internal Administrative Change Orders (IACOs). The formal Order". policies and procedures should clearly instruct when contractual activities should 2. Evaluate PMO SOP No. PC 7.0 and consider procedures for the be processed as IACOs or follow the standard change order process. Policies, handling of options. Procedures, SOPs should not be exempted without prior written approval of the Legal Counsel and the CEO. PTC, C&S & Engineering Planning & Project Delivery Report Date Target Date 3/9/2017 7/1/ CA Contract Audit: Parsons Contract H Recommendation 4: PTC, C&S and Engineering Dpt. Should ensure monitoring of payments and reconciling between the pay applications and actual payment effective immediately. Also ensure the Pay Application Summary Report is timely and accurately maintained. Implemented 1. Ensuring monitoring of payment and reconciling between the pay applications and actual payment. Update the Invoice Processing Procedures policy accordingly. 2. Ensure the Pay Application Summary Report is timely and accurately maintained. PTC, C&S & Engineering Planning & Project Delivery 3/9/2017 7/1/ CA Contract Audit: Parsons Contract H Recommendation 5: PTC, C&S and Engineering Dpt. Should follow the cost terminology used in the Board authorization and report the cost consistent with the distinct cost categories used in the Board authorization. Implemented Provide separate sub totals for Base Contract, Sales Tax Contingency in the Pay Application, Change Log and reporting. PTC, C&S & Engineering Planning & Project Delivery 3/9/2017 7/1/ IA Performance Audit: Fare Revenue Ticket Stock Inventory Controls (Phase II) Recommendation 1: The System Safety Department install surveillance cameras at the Union Station ticket sales windows on the East and West portals to protect personnel and assets. The Department to oversee, monitor, and be responsible for the image storage and daily operation of surveillance cameras. Implemented System & Safety Dpt will install surveillance cameras in the ticket window offices (East & West Portals). Draft policy covering camera use, recording retention and video request procedures. 10/9/2017 Draft policy has been submitted. Security/System Safety 3/9/2017 6/2/2017 6/30/ /9/

68 Internal Audit Department CORRECTIVE ACTIONS STATUS As of September 30, 2017 Project# Audit Type / Title Recommendation Corrective Action Plan (CAP) Department IA Performance Audit: Fare Revenue Ticket Stock Inventory Controls (Phase II) Recommendation 2: Fare Collection Services should communicate and implement SCRRA Standard Operating Procedures for TAP Enabled Ticket Stock Inventory Management with employees and the Contractor. Ensure all Departments policies and procedures are communicated and logically maintained in a central location accessible to all employees. Partially Implemented Fare Collection Services (FCS) will provide a copy of current SCRRA Operating Procedures for TAP enabled Ticket Stock Inventory to Xerox. Also, SOP's for Tap Enabled Ticket Stock Inventory Management approved by the Board in 2014 will be updated based on the services provided by the Contractor that is awarded the new TVD RFP. Fare Collections / Planning & Project Delivery Report Date Target Date 3/9/2017 3/17/2017 6/30/2018 Pending new TVD Installs IA Performance Audit: Fare Revenue Ticket Stock Inventory Controls (Phase II) Recommendation 3: Fare Collections Services conduct an annual physical inventory of SCRRA's portable equipment and request Contractor to provide a listing of equipment annually. Implemented Fare Collections / Planning & FCS will conduct an annual physical inventory of ticket stock portable Project Delivery equipment and will also work with Asset Management to determine if these items need to be recorded. 3/9/2017 3/31/2017 9/29/ /10/ IA Performance Audit: Fare Revenue Ticket Stock Inventory Controls (Phase II) Recommendation 4: Fare Collections Services should enhance the Contractor's responsibilities in Contract No. MS227 15, if feasible, including ticket stock inventory planning, procurement, management, perpetual or physical inventory requirement, and ticket stock data management. In Progress FCS will better define Contractors' responsibilities in the new contract for the new TVD system in October 2017, including ticket stock inventory management, physical inventory requirement and ticket stock data management. Fare Collections / Planning & Project Delivery 3/9/ /31/2017 6/30/2018 Pending new TVD Installs IA Performance Audit: Fare Revenue Ticket Stock Inventory Controls (Phase II) Recommendation 5: Fare Collections Services should conduct an Independent Cost Estimate (ICE) to ensure that the ticket stock unit prices are fair and reasonable and maintain documentation in their files as to how ICE was derived. Implemented FCS will provide an ICE based on today's projected prices. In addition, FCS will conduct an ICE for all future contracts and provide the ICE to the Contracts & Procurement Dpt for them to conduct their price analysis. FCS will maintain a copy of the ICE in their files. 4/28/2017 FCS provided an ICE based on today s projected prices. Fare Collections / Planning & Project Delivery 3/9/2017 3/10/2017 4/28/

69 Internal Audit Department CORRECTIVE ACTIONS STATUS As of September 30, 2017 Project# Audit Type / Title Recommendation Corrective Action Plan (CAP) Department IA Performance Audit: Fare Revenue Ticket Stock Inventory Controls (Phase II) Recommendation 6: In Progress Contracts and Procurement should perform a Cost/Price Analysis for all sole Contracts & Procurement Dpt will engage an outside consultant to source or non competitive negotiated procurements of $50,000 or more to perform a cost analysis to review Xerox's prices to document the file. determine if the price is fair and reasonable and maintain documentation in its file as to how the Cost/Price Analysis was derived Effective immediately, Contracts & Procurement Dpt. Will perform a cost analysis using outside consultants or in house staff and maintain the cost analysis documentation in the department's file in accordance with policies and procedures. 9/13/2017 Contracts has requested a cost analysis be performed by BCA to review Xerox's prices. Final report should be due by mid November Report Date Target Date Contracts & Procurement 3/9/2017 4/30/ /15/ IA Performance Audit: Fare Revenue Ticket Stock Inventory Controls (Phase II) Recommendation 7: Fare Collection Services should complete reconciliations of the ticket stock inventory data in AssetWorks with the source documents immediately to improve the data reliability for effective decision making or establish an alternative simplified reconciling process using an Excel Spreadsheet. In Progress Once ticket stock data can be extracted from AssetWorks, FCS will work with the vendor to compare the ticket stock inventory data in AssetWorks to the physical inventory ticket stock. FCS will monitor ticket stock inventory data in AssetWorks with the tools available. Meanwhile, FCS will add measures to ticket stock inventory management to improve data reliability in the new system. Fare Collections / Planning & Project Delivery 3/9/2017 6/30/2017 6/30/2018 Pending new TVD Installs IA Performance Audit: Fare Revenue Ticket Stock Inventory Controls (Phase II) Recommendation 8: Fare Collection Services should establish an effective Ticket Stock Inventory Data Management Procedures Manual to include disposition of ticket stock, annual physical counts, and reconciliations of ticket stock inventory data in AssetWorks to the source documents. In Progress Fare collections / Planning & FCS will establish an SOP for Ticket Stock Inventory Management and Project Delivery include disposal of obsolete tickets and reconciliation of ticket stock inventory data. See also Corrective Action Plan for Recommendation #2 3/9/ /31/2017 6/30/2018 Pending new TVD Installs 60 12

70 Internal Audit Department CORRECTIVE ACTIONS STATUS As of September 30, 2017 Project# Audit Type / Title Recommendation Corrective Action Plan (CAP) Department Report Date Target Date 2015/16 CAFR/SINGLE AUDIT Finding : Material Weakness in Internal Control (Annual Financial Reporting): 2. Develop standard operating procedures to complement each task identified to help with cross training of staff and staff transitions; 4. Take advantage of financial reporting components of the financial system; 5. Outline revenue recognition policies related to member subsidies. EXTERNAL AUDITS In Progress Finance 2. Standard Operating Procedure development is ongoing as various tasks are performed and documented. Cross training has occurred in payroll and a number of general accounting tasks. 4. Training & collaboration with IT relating to enhanced use of FIS system is ongoing in areas such as Accounts Payable, Capital Assets and Inventory. Significant progress will be made by the end of FY17, but optimization will likely not be reached until the end of calendar year Revenue recognition policies are in development. 12/30/ Ongoing 4. 12/31/ /30/2017 9/30/ /15/ /16 CAFR/SINGLE AUDIT Finding : Capital Asset & Project Management (Material Weakness in Internal Control Over Financial Reporting): 1. Develop policies and standard operating procedures to address areas significant for capital asset tracking; 2. Train all authority staff on these related policies and procedures; 4. Evaluate the PTC system to determine correct treatment for capitalization and depreciation purposes. In Progress 1. Existing policies have been reviewed and were generally deemed to adequately reflect accounting standards and best practices. SOPs are being drafted to ensure compliance with policy. Policies and SOPs are being drafted. Capital asset module of Oracle has been fully implemented; 2. Training of staff will occur once policies and procedures are finalized; 4. Evaluation of the PTC system has been delayed awaiting completion of the distinct components of PTC by consultants. Ideally, this work will be achieved before the financial books are closed for FY17. Finance 12/30/ /30/2017 8/31/ /31/ /30/ /31/ /15/ /31/

71 Internal Audit Department CORRECTIVE ACTIONS STATUS As of September 30, 2017 Project# Audit Type / Title Recommendation Corrective Action Plan (CAP) Department 2015/16 CAFR/SINGLE AUDIT Finding : Valuation of Inventory (Significant Deficiency in Internal Control): 1. Develop policies and standard operating procedures to address the identification and valuation of obsolete or over valued inventory; 2. Schedule a training with IT staff to gain a deeper understanding of the unintegrated inventory system to enable Finance to better monitor the activity processed through that software. In Progress 1. Best practices are being identified and policies will be developed. A cross functional work group is being assembled to identify existing obsolete inventory and to optimize inventory management going forward to minimize future obsolescence. 2. Understanding the inventory life cycle and the role of the FIS and AssetWorks systems in that cycle are occurring concurrent with task assignments of the cross functional work group. Report Date Target Date Finance 12/30/ /30/2017 5/31/2017 9/30/ /31/ /30/2017 5/31/2017 9/30/ /31/ /16 CAFR/SINGLE AUDIT Finding : Claims and Judgments Valuation (Significant Deficiency in Internal Control) Establish a policy that follows GAAP for estimating contingent liability and risk exposure. Perform periodic reconciliation to monitor claims and judgment activity. In Progress Finance and Legal have met to discuss the GAAP requirements regarding claims and judgments valuations to ensure compliance for FY17 estimates. A template has been developed and implemented for tracking actual versus estimated claims expenses which will be used to gauge estimation precision. A policy has not yet been developed. Finance 12/30/2016 6/30/2017 8/31/ /31/ /16 CAFR/SINGLE AUDIT Finding : Equipment Management (Significant Deficiency in Internal Control) Develop policies and procedures to address asset addition and disposal procedures and to ensure complete and timely. In Progress Existing policies maintained by Finance and Procurement are being evaluated for needed revisions. Some standard operating procedures have been developed regarding disposal of vehicles. Disposal forms will be modified to ensure sufficient information and appropriate approvals/notifications are obtained upon disposal. Finance 12/30/2016 6/30/2017 8/31/ /31/

72 Internal Audit Department CORRECTIVE ACTIONS STATUS As of September 30, 2017 Project# Audit Type / Title Recommendation Corrective Action Plan (CAP) Department 2015/16 Agreed Upon Procedures NTD Finding: No Written Procedures exist related to the system of reporting and maintaining data in accordance with NTD requirements. Metrolink staff, were however aware of the requirements (set forth in 49 CFR Part 630) In Progress 1. Hiring on a permanent Business Analyst whose core duties include NTD passenger data (should be finished with this phase soon). The BA will: a. Review prior reports & methodology b. Produce current reports based on methodology from prior periods 2. Review methodology information from another agency (I ve talked to Anne Louise about this) 3. Identify areas to improve methodology and build efficiencies into process 4. Draft a desk manual based on optimized methodology 5. Attend NTD course(s) with an outfit such as the National Transit Database 6. Finalize the desk manual based on all of the above Report Date Target Date Business Operations /31/ /30/2018 (contingent on course availability) 63 15

73 Internal Audit Department CORRECTIVE ACTIONS STATUS As of September 30, 2017 Project# Audit Type / Title Recommendation Corrective Action Plan (CAP) Department 2015/16 MOU Audit Finding : Accounting Discipline: To provide timely completion of audit schedules SCRRA should establish more efficient and effective review and reconciliation policies and procedures as a customary part of the accounting and reporting process. Appropriate schedules of unearned revenue and self insurance reserve accounts be maintained in accordance with LACMTA requirements. In Progress SCRRA management did not fully agree with the finding and itemized reasons for audit delays which included: New LACMTA auditors; Expanded Audit Scope beyond was initially agreed upon; Timing of fieldwork began right when FY16 CAFR was completed. Timeframe left little time to complete requested information. Earlier SCRRA should consider developing an accounting and reporting mechanism in its completion of the CAFR for FY17 will aid in allowing time for accounting system similar to the fund accounting system. This system will be used preparation of schedules for the coming MOU audit in early to account each revenue source and type of subsidy and monitor related expenditures chargeable to each funding type and source. With respect to unearned revenue, work was performed by an outside consultant in the past to reconcile the Deferred Revenue Balance to date as of June 30, It was noted that the work performed dis not meet the requirements for a prior period adjustment in FY16. This work will be rescoped and completed within the calendar year. 10/9/2017 Timely completion of audit schedules Earlier completion of the CAFR audit for FY17 will aid in allowing time for preparation of schedules for the coming MOU audit in early Deferred revenue A consultant has been engaged and is currently performing a multi year analysis of activity in deferred revenue. We anticipate this work to be completed within the calendar year, as planned. Finance Report Date Target Date 12/31/2017 For unearned revenue/self insurance portion 2015/16 MOU Audit Finding : Cost Allocation Formula: Recommend a formal review and approval on the allocation of expenses be performed by SCRRA to avoid errors in the subsidy allocation report. In Progress The erroneous calculations will be corrected in FY 16/17 resulting in additional charge to LACMTA of $195,404 with a corresponding decrease to the other member agencies. 10/9/2017 The annual allocation results will be subject to a more thorough supervisory review before they are finalized. Finance 12/31/

74 Internal Audit Department CORRECTIVE ACTIONS STATUS As of September 30, 2017 Project# Audit Type / Title Recommendation Corrective Action Plan (CAP) Department OCTA Subrecipient Review Finding 2: Financial Management & Capacity Cost Allocation Plan Deficiencies: SCRRA does not provide details of the approved indirect rates when submitting invoices including indirect costs to OCTA and RCTC. In Progress Updates to the Indirect Cost Allocation Plan policy will be taken to the Board in November Report Date Target Date Finance 11/30/2017 OCTA Subrecipient Review Finding 4: Satisfactory Continuing Control Inadequate equipment records: The current asset management system does not document the condition and use of FTA funded equipment. In Progress The updated equipment records with information detailing use and condition for the new additions is currently being developed. Finance 11/30/

75 TRANSMITTAL DATE: October 20, 2017 MEETING DATE: October 27, 2017 ITEM 14 TO: FROM: SUBJECT: Board of Directors Arthur T. Leahy Ticket Vending Machine Availability and Performance Issue Staff is providing an update on ticket vending machine (TVM) availability and performance. Recommendation The Board may receive and file this report. Alternative The Board may request additional information. Strategic Goal Alignment This report aligns with the strategic goal to improve communications to customers and stakeholders. It provides updates related to legacy TVM availability and performance. Background TVM maintenance services have been provided by Conduent Inc. (formerly Xerox Transport Solutions, Inc.) since the installation of the TVM fleet in The current fleet is programmed to dispense seven channels of ticket stock and is located at each of the 60 Metrolink stations. Overall, the fleet supports dispensing of tickets for over 30 ticketing programs. A fare collection strategy was adopted on April 22, 2016 which included procurement and deployment of modern fare vending devices. On June 24, 2016, the Board approved the initiation of the public review process for the Title VI fare equity analysis. On September 23, 2016, the Board approved the findings of the Title VI fare equity analysis study. 66

76 Ticket Vending Machine Availability and Performance Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 2 TVM Availability TVM availability is measured by the total number of TVMs in service, multiplied by the minutes in a month available for dispensing tickets, minus the unavailable minutes due to failures. TVMs have consistently been averaging a 95% availability since May The availability percentages for April, May, June, July, August and September 2017 was approximately 98%. This availability level is consistent with the levels compared to recent months. Figure 1. TVM Monthly Availability TVM Monthly Availability % 99.00% 98.00% 97.00% 98.89% 98.61% 98.43% 98.40% 98.26% 98.71% 98.61% 98.32% 98.60% 98.26% 98.48% 98.09% 96.00% 95.00% 94.00% 93.00% Oct 16 Nov 16 Dec 16 Jan 17 Feb 17 Mar 17 Apr 17 May 17 June 17 July 17 Aug 17 Sept 17 Monthly work orders for April 2017 totaled 349. The main types of work orders reported were printer errors (125 work orders / 35.8% time unavailable), paper not inserted errors (53 work orders / 15% time unavailable), and bill note acceptor errors (24 work orders / 6.8% time unavailable). Monthly work orders for May 2017 totaled 380. The main types of work orders reported were printer errors (159 work orders / 41.8% time unavailable), paper not inserted errors (63 work orders / 16.5% time unavailable), and bill note acceptor errors (35 work orders / 9.2% time unavailable). Monthly work orders for June 2017 totaled 338. The main types of work orders reported were printer errors (148 work orders / 38% time unavailable), bill note accepter errors (40 work orders / 10.3% time unavailable), and paper not inserted errors (26 work orders / 6.7% time unavailable). Monthly work orders for July 2017 totaled 454. The main types of work orders reported were printer errors (163 work orders / 35.9% time unavailable), paper not inserted errors (56 work orders / 12% time unavailable), and bill note acceptor errors (37 work orders / 8% time unavailable). 67

77 Ticket Vending Machine Availability and Performance Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 3 Monthly work orders for August 2017 totaled 338. The main types of work orders reported were printer errors (137 work orders / 40.5% time unavailable), paper not inserted errors (50 work orders / 14.8% time unavailable), and bill note acceptor errors (36 work orders / 10.6% time unavailable). Monthly work orders for September 2017 totaled 446. The main types of work orders reported were printer errors (146 work orders / 32.4% time unavailable), paper not inserted errors (104 / 32.8% time unavailable) and bill note acceptor errors (32 work orders / 7.4% time unavailable). In June and July 2017, the paper stock caused pilot hole blockages, which are blockages within the TVM s internal rollers that prevent tickets from printing. When the ticket stock vendor fails to cut the pilot holes in between each of the tickets on the roll, these blockages occur. Conduent has worked closely with the ticket stock vendor, and has been assured that the pilot hole blockages will no longer be an issue. Staff continues to hold daily coordination calls with Xerox maintenance staff, as well as additional engagement and communications efforts as necessary for maintaining the TVMs. The goal is to keep both parties updated with any TVM issues that may arise and continue to improve system performance. End of Life Parts In May 2017, Conduent provided Metrolink with a prioritized list of TVM components that had reached their end of life and required replacement to maintain current levels of TVM availability. Replacement would require a significant out-of-scope cost expenditure. Further, many of these components are so old (over 15 years) they are no longer being manufactured and equivalent, off the shelf replacements may be difficult to source due to the customized nature of the TVMs and their original components. In order to identify the most expedient, cost-effective solution, the Fare Collections team has been working with Conduent to identify possible solutions to the end of life issue impacting the deployed TVM inventory. The solutions identified included: Re-engineer the current TVMs with Conduent s development team to accommodate newly manufactured components. Replace up to (12) TVMs with the new currently deployed PVL -model TVMs, strip the old TVMs for spare parts and replace TVM components as they fail. Replace up to (12) new economy TVMs that is not currently deployed systemwide, strip the old TVMs for spare parts and replace TVM components as they fail. Conduent work with their third party manufacturers, parts suppliers and other transit agencies to provide a solution to procure the difficult end of life components. At this time, FCS and Conduent have identified a limited number of replacement components from third party manufacturers. Staff is working with executive leadership 68

78 Ticket Vending Machine Availability and Performance Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 4 regarding the strategy to acquire the remainder of the TVM components and alleviate the end of life issue through one or more of the solutions outlined in this report. Budget Impact The amounts for which contract authority is requested will be covered by a transfer from another approved budget item in the FY Adopted Operations Budget. Prepared by: Kelcy Dungo, Specialist, Fare Collections Services Andy Ly, Manager, Special Projects, Fare Collections Services Kimberly Yu Deputy Chief Operating Officer (Planning and Project Delivery) Gary Lettengarver Chief Operating Officer 69

79 TRANSMITTAL DATE: October 20, 2107 MEETING DATE: October 27, 2017 ITEM 15 TO: FROM: Board of Directors Arthur T. Leahy SUBJECT: Performance Update on Contract No. OP Operator Services Quarter Ended September 30, 2017 Issue Staff is providing an update on Contract No. OP Operator Services with the National Railroad Passenger Corporation (Amtrak). Recommendation The Board may receive and file this report. Alternative The Board may request additional information. Strategic Goal Alignment This report aligns with the strategic goals to maintain fiscal sustainability and improve communications to customers and stakeholders. Fare enforcement efforts reduce fare evasion and loss of revenue. Background On June 24, 2016, the Board authorized the Chief Executive Officer to exercise the second and final three-year option under Contract No. OP with Amtrak and extend the period of performance to June 30, During the discussion, Director Solis requested that staff return on a quarterly basis to provide an update on the contractor's performance. This report highlights Amtrak s performance based on their compliance of Metrolink's operational supplemental instructions, specifically regarding Conductors' onboard ticket scanning and providing proper/accurate announcements to customers. This report will discuss fare compliance, inspection policy, and train and engine crew responsibilities. 70

80 Performance Update on Contract No. OP Operator Services Quarter Ended September 30, 2017 Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 2 The current supplemental instructions provide guidelines in 11 areas for train and engine (T&E) crews (Conductors and Engineers) operating on the Metrolink system. Adherence to supplemental instructions is monitored by Authority management and the Compliance Department. "Spot-checking" and observation of crew members is performed by riding trains and observing crews that arrive and depart from stations throughout the Metrolink system. Onboard Ticket Scanning Scanning devices are used by Conductors to validate paper tickets issued by ticket vending machines (TVMs) and mobile tickets purchased through the Metrolink smartphone application, or app. Prior to the deployment of the ticket scanning device all conductors verified tickets by visual inspection. The table below shows inspection rates for the previous quarter. The Authority s goal is to achieve an average inspection rate of 25% for the month; the average for the previous quarter ended June 30, 2017 was at 23.51%. In the quarter discussed in this report, staff saw an increase in of 9.19% with an average of 32.7% (see table 1). Table 1. Scan Counts - Summary by Month AMTRAK Ridership (Conductor Count) Scan Rate (%) Month Weekday Weekend Total Jul ,129 27, , % Aug ,336 24, , % Sep ,513 27, , % Management continues to meet monthly with Amtrak to discuss various contract-related matters including ticket scanning requirements and other areas of performance. Amtrak is provided monthly reports indicating low performers with the expectation that their management will implement corrective actions. The Operations Administrator continues to not only partner with Amtrak s management team to resolve Train and Engineer (T&E) matters, but to also provide support and direct oversight of the contract accordingly. Based on Authority reporting, staff sees an improvement as it relates to fare compliance and the inspection policy. 71

81 Performance Update on Contract No. OP Operator Services Quarter Ended September 30, 2017 Transmittal Date: October 20, 2017 Meeting Date: October 27, 2017 Page 3 Citations (Fare Evasion) The table below indicates the number of citations issued by Conductors for the quarter. The Agency is closely monitoring Conductor compliance as it relates to the Fare Compliance and Inspection Policy. The Agency recognizes that effective fare compliance and enforcement leads to lower fare evasion and subsequent increase in fare revenue. Table 2. Citations by Line Summary by Month T&E Crew Responsibilities Displaying consistent professional etiquette by staff is very important to the Authority. The Conductors are Metrolink s frontline employees and have direct interaction with Metrolink passengers. Conductors are expected to perform their duties in a courteous, efficient and safe manner as outlined in the Supplemental Instructions. Customer complaints and commendations related to Conductor performance are documented in the Metrolink customer database for review and action. The figure below reflects the previous quarter s feedback from Metrolink customers either through Metrolink s website, call center or social media platforms. Figure 1 shows customer feedback on Conductors per 100,000 boarding's, an accepted industry metric. 72