Board Meeting of June 6, 2012

BOARD MEETING OF JUNE 6, 2012

At the call of the Chair, a meeting of the Board of Directors of the

Massachusetts Bay Transportation Authority was held at Ten Park Plaza, 3rd

Floor, MassDOT and MBTA Conference Room, Boston, Massachusetts, on

Wednesday, June 6, 2012 at 1:00 p.m.

There were present: Messrs. Jenkins, Alvaro and Whittle, the Misses

Levin and Loux, being all members of the Board.

Also in attendance were: the Secretary, Mr. Davey, the Acting General

Manager, Mr. Davis, and Messrs. Kelley and Kane, Special Counsel and Miss

Rollins, General Counsel to MassDOT and MBTA and Miss Fallon, Recording

Secretary to the Board.

The Chairman, Mr. Jenkins, presided.

Chairman Jenkins called the 1061st Open Meeting to order.

Chairman Jenkins opened up public comment. Board of Directors John R. Jenkins, Chair • Ferdinand Alvaro, Jr. • Elizabeth Levin • Janice Loux • Andrew Whittle The first speaker was Paul Regan, from the MBTA Advisory Board. Mr.

Regan stated that they are interested with the item on the agenda concerning the

Watch list. Mr. Regan stated that the Advisory supports this very strongly.

The next speaker was James F. White the Vice Chairman of AACT. Mr.

White announced the passing of Mr. Philip Beaulieu. Mr. White continued with his comments of their concerns with the new RIDE charges and the premium area.

He noted that AACT is not in agreement with the new definitions of the RIDE and the premium area.

The next speaker is Mr. Allan Karon, customer of the MBTA TAP pass. He commented on the fare increase and the premium areas that are being proposed. He also is interested in the Watch list item on the agenda.

The next speaker on the agenda was John Gale from the Disability Law

Center. Mr. Gale commented on what will happen if the Legislature if they don’t pass the funding and the Board will then have to look at additional service cuts.

The next speaker was Brian Charlson from the Bay State Council for the

Blind. Mr. Charlson commented on the premium zone area, the fares and how they haven’t been communicated with by the MBTA.

Chairman Jenkins announced that he will suspend public comment to tend to two items because the presenters have time constraints. They will finish public comment after those items. The General Manager submitted his report on safety, employees, fiscal responsibility, innovation, and employees. Mr. Davis also gave his condolences to AACT for the passing of Philip Beaulieu. He also noted that they will be postponing the implementation of the premium fare areas until they can further study it. Mr. Davis also gave out four accommodations to Sergeant Steven

O’Hara, Officer James Clark, Detective Patrick Guilfoy and Officer Elizabeth

Dumas for their heroic acts. (Attached)

Director Alvaro asked where we are on the Legislation that was mentioned during public comment. Mr. Davis stated that they are hopeful the legislation will pass but if not they will have a plan b. Director Alvaro stated that the reason he voted against the fare increase in the first place is because the Legislature was absent during the process and now they are now where. He stated that he will not vote for a plan b especially if he didn’t vote for plan a. He stated that the

Legislature needs to step up help out the Transportation funding problems.

Director Loux stated that is an issue of disenfranchising people and now we may have to push for more cuts. She stated that the Legislature needs to step up. The people who are taking the trains are on fixed budgets and they are working 2-3 jobs and they never get to see their children and she asked where the conscience of the legislature was for the working poor of this transit system.

Chairman Jenkins noted that he has spoken with the Secretary on this issue and he has been assured that they are working on a plan b in case the Legislature does not act. Director Levin asked if there will be a public process if there is another plan. Chairman Jenkins noted that we had already had the public process and that they have heard everyone concerns of the scenarios so they are already well aware of how it affects them and we will not have another series of meetings. Director Loux stated that the quality of life for the working poor is now on the backs of the Legislature. Secretary stated that they have been working on a plan b and what it could be. He stated that there were originally two plans out there and it will be along those two scenarios which the public has seen and were very opposed. He stated we need action and we need it quick or else they will be back in July with another proposal that no one wants to do.

Next was the update from Hyundai Rotem by CEO M. H. Lee. Chairman opened up by stating that he is hoping to get an oral commitment then followed by a written commitment to deliver in a timely manner on the contract that we signed because the board is not looking for the adverse consequences.

The Secretary thanked them for coming and would like to reiterate the disappointment of the inability to deliver the coaches on time. He said we need

75 coaches in service as soon as possible.

The General Manager thanked Mr. Lee for coming today. He referenced the letter he had written to M. H. Lee and the items listed that needed to be addressed. He emphasized that there can be no compromise on the quality of the coaches as well as a need for a schedule that can be agreed upon and one that Hyundai Rotem can adhere too.

Mr. Lee responded through an interpreter with a brief description of their past work here in the United States and in Korea. He relayed his reason for not making the current schedule due to strict US regulations and the strict specification of the coaches. He stated that he stopped by the plant in

Philadelphia to check on the status of the coaches and to encourage the workers to give their best for this project. He feels he will be able to lead this project in a successful direction.

He began with an update on the current status of the project. Four pilot coaches arrived in New Bedford earlier this year. They are working to make sure they are up to specifications and are currently in the final inspectional stages.

They commenced outfitting of the first four cars in Philadelphia on April 17, the second set shipped to Philadelphia last April and the third set will be shipped in the next week. They said currently they have 293 employees at the plant in

Philadelphia including 174 skilled laborers at the workshops. Training laborers as well as deploying facilities used for the SEPTA project are in the process to be utilized solely for the MBTA project. We are now doing our best to shorten the prolong delivery schedule to achieve proximity to the agreed schedule signed in the agreement back in June 2010. To achieve this timeline and delivery of high quality cars they will commit as many resources as possible to the MBTA project.

They will commit 715 people working on the entire project including 293 in

Philadelphia and 492 in Korea. He expressed his regret at the prolong delivery schedule to the MBTA and the people of Boston. He stated that they will work to meet the demands by successfully completing the MBTA project with high quality

MBTA cars.

Director Loux thanked Mr. Lee for coming. She stated that in the beginning she was against their company getting the contract because they never had built a railcar in the United States when they were bidding the contract.

She stated that the approach that was taken by management of our agency and your company at the time was egregious in that your company hired consultants related to the Chief Operating Officer of this company to come in and to push this contract through and at the time you had a General Manager that agreed with you. When we signed a contract with Rotem there was no working facility in

Philadelphia. You went and bought a parking lot and trucking warehouses where you eventually built the facility but it took a long time. The history of your company in the US operations in January of 2004 was that you weren’t even registered you never even produced a car in the United States. In April and May of 2006 you got contracts with SEPTA and in 2008 you got the contract with us still having never made a car in the United States. The Director stated that she then requested pictures because she wants to know what was going on and what she got was pictures of the Rotem building in Philadelphia working on trains but not our trains. She stated that Hyundai Rotem is not meeting contractual obligations despite strong promises. The vehicle deliveries are way behind schedule and now she fears as a Board Member the quality of the vehicle assembly is suffering. She has a great degree of faith in our staff here so what is most disturbing is that Rotem was non-responsive to critical issues. It was sloppy a RFP that forced the board into a vote because of the political money they spent to get themselves there. She stated that they need to fix this or they will be replaced and she would like to know how they are going to fix this.

Mr. Lee responded that because he wasn’t president at the time of the contracting he is not familiar with the circumstances around what happened with the contracting around that time. He would like to mention that recently they have received feedback from one of their projects and the quality has been favorable.

He understands that quality is a very important concern and they have received positive feedback from their customer in the United States regarding the quality of their product. He believes that it is important to look to the future and at the deliveries that have been made in the United States which he stated have been favorable and as the CEO he assures them that he will deliver the best high quality product to us. When he spoke to the CEO of a previous customer last year they stated that they too were not sure about the company at first because they had never made any cars in the United States. When they had finally received their cars they were happy and said that their original feelings were wrong. Chairman Jenkins asked if those cars were delivered on schedule. Mr.

Lee responded that they were not because there was a design change during the production and they have made the shipments as agreed to by the revised schedule to the authorities. Mr. Lee stated that he believes that we now should use our time to work together to ensure timely delivery of high quality products.

Director Whittle stated that he used the stringent specifications as a reason for the delay. He asked for Mr. Lee’s assurance that they will be able to meet this specification to deliver to the MBTA. Mr. Lee stated that Rotem has already the quality assurance documents that have been approved by the authority and cars that don’t meet these specifications won’t be delivered to the authority. Director

Whittle asked if we will meet the 30 year specification on these cars. Mr. Lee answered that they will meet these specifications.

Director Alvaro asked Director Loux if she believed that what occurred during the procurement process merits investigation. Director Loux answered that what is important is to figure out how to get our commuter rail cars anything regarding the past actions can be left up to the Secretary to decide. Director

Alvaro would like us to look at the actions and activities that preceded the award of this contract to make sure that there were no violations made. Chairman

Jenkins stated he would like to table that discussion at this time. Director Alvaro stated that he can handle this topic at Finance committee. Chairman Jenkins stated he would like to request a specific deliverable and timeline. He would like them to provide these to the operating management of what we are going to get and when. He would like a preliminary version in 10-14 days and a final version of the agreement one month from today. Mr. Lee stated that they will give them a schedule in the next two weeks and after consultation then they will provide a final document at the end of the month. Chairman Jenkins stated that the final document is the one that they will hold them too and to use as a report card to determine if they would like to move forward with the contract or whether they will look at our options of terminating the contract and working with someone else.

They don’t look forward to the latter and he stressed that he expects that all resources should go toward this contract. Mr. Lee stated that he will take to heart the words spoken today and he would like to emphasize that they have always been a transparent company that hasn’t engaged in any inappropriate behavior in the past or now. He stated that he understands why these comments may come out now due to the current status of the project but they will always conduct themselves in a transparent business and this is the pride of their company. He ensures them that they will do their best to improve the relationship to do the circumstances. Director Loux stated that there were a lot of broken promises at the time and she would like no more broken promises and stated that maybe they didn’t know what the people here were doing but they were doing it and being paid by you. Director Levin urges them to make sure that the people in the plant our responsive to our management during this period with better communication. The Chairman reconvened public comment.

Secretary Davey stepped out of the room for the next speaker and came back into the room right after.

The next speaker was Gary Walker from Local 103 IBEW. Mr. Walker stated that he was there in support of the Item 5 the Yawkey Station

Development.

The next speaker was Mr. John Winski from the Disability Policy

Consortium. Mr. Winski comment on the implementation of the in-person assessment. He submitted his comments in writing.

The next speaker was Penelope Shaw also from the Disability Policy

Consortium. Ms. Shaw commented on the hardships of the fare increase as well as the premium fare areas. She would like the MBTA to consider and equitable fare structure.

The next speaker was Marilyn McNab. Ms. McNab commented on the in- person assessment and the premium fare structure. She would like the MBTA to be creative working on the solutions. A full list of speakers is attached to the minutes.

Chairman Jenkins closed public comment period.

Next item on the agenda is the Pawtucket Layover Facility presented by

Assistant General Manager Ed Hunter. Mr. Hunter requested the authorization to enter into a contract with CRC Company for contract D15CN01 called the

Pawtucket Layover Facility Improvements for a sum not to exceed

$3,648,760.00. Mr. Davis thanked Rhode Island for stepping up and working closely with the MBTA.

On motion duly made and seconded, it was unanimously;

VOTED: That the Acting General Manager and Rail and Transit Administrator be, and hereby is, authorized to execute in the name of and on behalf of the Authority, subject to the approval of the Massachusetts Department of Transportation (MassDOT) and in the form approved by General Counsel, to award MBTA Contract No. D15CN01 entitled, “Pawtucket Layover Improvements Project, Pawtucket, Rhode Island,” with C.R.C. Company, Inc. for a total cost not to exceed $3,648,760.00, including Bid Alternate No. 1 and Bid Alternate No. 2.

The next item is the approval of the April 4 and May 2, 2012 Board meetings.

On motion duly made and seconded it was unanimously;

VOTED: Approved the minutes of April 4 and May 2, 2012 Board

Meeting. Secretary Davey stepped out of the meeting for the next item.

The next item on the agenda presented by Joseph Cosgrove along with

Dana Levenson, is the authorization for the execution of Amendment to the

Memorandum of Agreement by and between MK Yawkey Station Development

LLC (formerly MK Parcel 7 Development) and the MBTA for transportation improvements at Yawkey Station in an amount not to exceed $3,648,760 with a one year extension.

VOTED: That, the Acting General Manager and Rail and Transit Administrator be, and hereby is, authorized to execute Amendment No. 1 to the Memorandum of Agreement by and between the Authority and MK Yawkey Station Development, LLC for additional project scope and cost items in an amount not to exceed $2,917,379; and

Further, that this Board action is contingent upon the condition that any and all additional costs whatsoever with respect to the Project, including but not limited to any additional items or future costs beyond the budgeted amounts for night or weekend work, supervision, or inspections, shall be paid by the Developer. Only added costs as a direct result of requests made by the MBTA that are determined to be “out-of-scope” costs shall be paid by the MBTA.

Further, time of completion of the station project under the said Memorandum of Agreement is extended by one year to December 31st, 2013.

This Board Action is contingent on approval and execution of an Interagency Service Agreement by MassDOT to the Authority providing for the additional funding stipulated in the Amendment. The Secretary came back into the meeting.

The next item on the agenda presented by Claudia Russell is the authorization to execute a contract with Alstom Transportation, Inc. of New York for Selective Systems Overhaul of 86 Green Line Type 7 Light Rail Vehicles

(LRV’s) at a not to exceed delivered cost of $104,393,982, with an anticipated date of no later than 51 months from the Notice to Proceed. Director Loux asked if the future signal system was considered in this contract. Mr. Davis stated that they are working on how they can add capacity and work on the signals and positive train control. Director Loux would like to see a presentation on the signal systems. Mr. Davis stated that they could do it in the next three to four months.

Director Alvaro asked where we were in the planning for the larger procurement for the cars. Mr. Davis stated that the number one priority is the orange line and the red line cars and he has Charles Planck to set up a finance plan to acquire those vehicles. This is to keep the Green Line cars in service until they can get money to purchase new cars after the red and orange line cars. Director Levin asked about the quality of the product. Ms. Russell stated that she is confident that these are quality product. Director Loux also stated to make sure that Alstom finding an office won’t affect the quality of the product or the schedule. Director

Levin also asked for clarification on when a vendor who is not selected is contacted if they are not high up on the list. Mr. Davis stated that they get back to vendors once the procurement is completed and then give them an option to have a debriefing once they are done. Director Whittle asked why the reliability dropped off. Jeff Gonneville answered stated it was due to the broad spectrum vehicle subsystems and water egress structural issues as well as the braking systems and a long list of problems.

VOTED: That, subject to approval of the Massachusetts Department of Transportation, and the completion of FTA Buy America audit requirements, the Acting General Manager and Rail and Transit Administrator be, and hereby is, authorized to execute in the name of and on behalf of the Authority, and in the form approved by General Counsel, to execute a formal contract with Alstom Transportation Inc., of New York, NY for the Selective Systems Overhaul of 86 Green Line Light Rail Vehicles (built by KinkiSharyo in 1986-1987), including spare parts, manuals, training program and hidden damage allowance, in accordance with Technical Specifications No. VE-09-028, at a total not-to-exceed delivered cost of $104,393,982.

The next item on the agenda presented by Anna Barry is the authorization to execute Amendment No. 4 with CH2M Hill Inc., formerly Booz Allen Hamilton for Phase II engineering services for the multi-phase Green Line Type 7

Selective Systems Overhaul Project for a sum not to exceed $7,319,922 and anticipated completion date no later than 51 months from Notice to Proceed.

Director Alvaro asked about alternative one of doing the work in house. Ms. Barry stated that they didn’t do the numbers on this item but for previous contracts they calculated the costs and found them not to be feasible to be done in house. Director Alvaro requested that in the future the alternatives have more facts and meaning than what he has seen for most of them. Director Levin stated that we need more of a policy framework put in place.

VOTED: That the Acting General Manager and Rail and Transit Administrator be, and hereby is, authorized to execute in the name of and on behalf of the Authority, subject to the approval of the Massachusetts Department of Transportation (MassDOT) and in the form approved by General Counsel, Amendment 4 to MBTA Contract No. V40PS01 entitled “Engineering Services in Support of Selective Systems Overhaul of the Green Line Type 7 and Red Line No. 2 Vehicles” with CH2M Hill, Inc. of Boston, MA for a sum not to exceed $7,319,922.00, anticipated to be completed within 51 months of Notice to Proceed.

The next item on the agenda presented by Michael Lambert is the authorization to execute a contract entitled “The Ride in Person Eligibility

Assessment Service” with Innovative Paradigms in an amount up to $9,692,977.

Mr. Lambert stated they had met with the public with small meetings with BCIL,

AACT and talk to the Project Action Team in Washington. This was to get a firm understanding on what the policy should involve. They held a packed room meeting in the Transportation Building to ask them what the most important part of the process was. Chairman Jenkins asked about the outreach that was done for the In Person Assessment. Director Levin stated that the public process should have been robust and that we should have a reform agency that is customer friendly and respectful. She would like us to look at gearing more towards doing thing online similar to the campaign the Register Kaprielian is doing at the RMV. She ended that we need to give more thought and listen to our customers. Director Loux stated that we can’t work out a contract until we do a review and this contract will allow us to do a stem to stern review. She asked if she votes yes then can they still work with the disability community. Mr. Lambert stated that they can work with the disability community. Chairman Jenkins wanted to make sure that we need to give them information to engage. Director

Loux stated that this needs to be handled sensitively and with empathy. Director

Levin would like to know what the process will be before the contract is voted on.

The Chairman asked that there be flexibility in the contract to change the program if they need too. Director Alvaro stated that in the vote it must include to allow the MBTA to have the ability to make unilateral changes to the contract.

On motion duly made and seconded, with one opposed by Director Levin it was;

VOTED: That, subject to the approval of the Massachusetts Department of Transportation, the General Manager be, and hereby is, authorized to approve the execution in a form approved by General Counsel, a contract entitled “THE RIDE In-Person Eligibility Services,” with Innovative Paradigms for services for an amount not to exceed $9,692,977 for a period of time of four years from Notice to Proceed with an MBTA option for one additional year. The contract will contain provision which will allow the MBTA to make unilateral changes on how the program is implemented.

The next item on the agenda under other business presented by Mark

Boyle is the update on the North Station Garage Lease. Mr. Boyle stated that the delay of the closing was due to a title issue that can only be fixed by legislation.

He noted that both sides had an agreement so that this can close before the legislation is passed it is more of a housekeeping item. Director Alvaro stated that the title issue should have been long resolved before it got to the point it had.

The next item on the agenda is the watch list presented by Charles

Planck. Mr. Planck stated The MBTA is preparing to make available route-level service data for the entire bus system to help customers and stakeholders engage in the service planning process and any future potential service changes necessitated by financial constraints. He stated that similar data for other modes will be available in the future. This initiative is in response to public comment received during the 2012 fare and service change process. Consistent with its existing Service Delivery Policy, the MBTA conducts biennial evaluations of all services, a process that seeks public comment on potential changes to improve service effectiveness. The Route Performance Indicators, including net operating cost per passenger, crowding and on-time performance, among others, are used to assess performance and focus resources for passenger benefit. This initiative will make all currently-available indicators available online at all times, enabling customers and stakeholders to see how routes compare to each other using multiple indicators. The Route Performance Indicators list is a pilot project of the MBTA and public feedback is encouraged with regard to improvements to service information for customer use. He stated that the MBTA wants to present useful information in a clear format to help customers work with the MBTA to improve service quality and service effectiveness. The full availability of the

Route Performance Indicators is an important step forward in the MBTA’s continuing effort to engage our stakeholders in the provision of quality transportation services. The Route Performance Indicators will be posted on line by the end of June. The MBTA will provide an update on this initiative as it progresses.

The next item on the agenda is the appointment of Gerald K. Kelley to the

MBTA Retirement Board as an alternate to the Board Member. Mr. Kane presented this item.

VOTED: That, in accordance with Article VI (1 )(a) of the Massachusetts Bay Transportation Authority Pension Agreement, this Board herewith appoints Mr. Gerald K. Kelley, as an Alternate Member to the MBTA Retirement Board, effective on June 6, 2012, as established by the Pension Agreement.

VOTED: To adjourn the 1061st Open Meeting.

DOCUMENTS RELIED ON AT THE MEETING General Manager’s Report Minutes for the April 4 and May 2 Board Meetings Staff Summaries for items 4-8 Watch List Comments submitted by Public comment period