VALLEY METRO RAIL FY19 Budget VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
Valley Metro Rail, Inc. PHOENIX, ARIZONA
ADOPTED OPERATING AND CAPITAL BUDGET FISCAL YEAR 2019
(JULY 1, 2018 THROUGH JUNE 30, 2019)
FIVE-YEAR OPERATING FORECAST AND CAPITAL PROGRAM FISCAL YEAR 2019 THROUGH FISCAL YEAR 2023
(JULY 1, 2018 THROUGH JUNE 30, 2023)
Valleymetro.org ii VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
BOARD OF DIRECTORS
Chair Vice Chair Kevin Hartke Chris Glover Thelda Williams Councilmember Councilmember Vice Mayor Chandler Mesa Phoenix
Jerry Weiers Robin Mayor Arredondo- Glendale Savage Vice Mayor Tempe
EXECUTIVE MANAGEMENT TEAM
Scott Smith Raymond Robert Antoniak Chief Executive Abraham Chief Operating Officer Chief Operations Officer Officer
Hillary Foose Wulf Grote Paul Hodgins Director, Director, Capital Chief Financial Communication and Service Officer & Strategic Development Initiatives
Penny Lynch Michael Mary Modelski Director, Human Minnaugh Manager, Resources General Counsel Internal Audit Director
Adrian Ruiz Director, Safety, Security and Quality Assurance
Valleymetro.org iii VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
TABLE OF CONTENTS
EXECUTIVE SUMMARY & FIVE-YEAR OPERATING FORECAST & ANNUAL BUDGET CAPITAL PROGRAM EXECUTIVE SUMMARY SUMMARY OVERVIEW
AGENCY OVERVIEW ...... 3 FIVE-YEAR OVERVIEW ...... 36 SERVICE CHARACTERISTICS ...... 4 FIVE-YEAR FORECAST...... 37 FARE POLICY ...... 4 RIDERSHIP AND AVERAGE FARE ...... 38 STRATEGIC PLAN, VISION, AND GOALS ...... 5 OPERATING FORECAST PRIORITIES AND ISSUES ...... 5 FY19 BUDGET OVERVIEW ...... 6 OPERATING OVERVIEW ...... 40 BUDGET ANALYSIS ...... 9 RAIL OPERATIONS & MAINTENANCE ...... 41 STAFFING OVERVIEW ...... 11 FUTURE PROJECT DEVELOPMENT ...... 42 FIVE-YEAR OVERVIEW ...... 13 AGENCY OPERATING ...... 43 OPERATING BUDGET CAPITAL PROGRAM
OPERATING OVERVIEW ...... 15 CAPITAL OVERVIEW ...... 45 RAIL OPERATIONS & MAINTENANCE ...... 16 GILBERT ROAD EXTENSION ...... 48 FUTURE PROJECT DEVELOPMENT ...... 19 50TH STREET STATION ...... 49 AGENCY OPERATING ...... 21 TEMPE STREETCAR ...... 50 OVERHEAD ALLOCATION ...... 22 SOUTH CENTRAL ...... 52 NORTHWEST PHASE II ...... 55 CAPITAL BUDGET OPERATIONS & MAINTENANCE CENTER EXPANSION ...... 57 CAPITAL OVERVIEW ...... 25 CAPITOL I-10 WEST PHASE I ...... 59 GILBERT ROAD EXTENSION ...... 26 WEST PHOENIX ...... 61 50TH STREET STATION ...... 27 CENTRAL MESA EXTENSION ...... 62 TEMPE STREETCAR ...... 28 SYSTEMWIDE IMPROVEMENTS ...... 63 SOUTH CENTRAL ...... 29 NORTHWEST PHASE II ...... 30 OTHER OPERATIONS & MAINTENANCE CENTER EXPANSION ...... 31 STAFFING NORTHWEST PHASE I ...... 31 CENTRAL MESA EXTENSION ...... 32 ORGANIZATION CHART ...... 66 SYSTEMWIDE IMPROVEMENTS ...... 32 POSITION, PAY GRADES, AND EFFORT ...... 67 CAPITAL DEBT SERVICE ...... 33 APPENDICES
THE BUDGET PROCESS ...... 71 SERVICE METRICS ...... 72 STAFFING TRENDS ...... 73 SERVICE AREA ...... 75 SERVICE MAP ...... 76 GLOSSARY OF TERMS AND ACRONYMS ...... 77
Valleymetro.org iv VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET Executive Summary & Annual Budget
Valleymetro.org 1 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
EXECUTIVE SUMMARY
Valleymetro.org Executive Summary 2 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
AGENCY OVERVIEW Valley Metro is comprised of two separate legal entities, the Regional Public Transportation Authority (RPTA) and Valley Metro Rail, Inc. (VMR). The two agencies operate jointly with one Chief Executive Officer and one organizational structure. Intergovernmental agreements between the agencies define the responsibilities of each agency in meeting the overall strategic mission, vision and goals for Valley Metro. Valley Metro is governed by two boards of directors. The RPTA Board consists of 18 public agencies that set the policy direction for all modes of transit except light rail. The VMR Board consists of five cities that set the policy direction for light rail high capacity transit (HCT). The boards and the agency work to improve and regionalize the public transit system.
RPTA is the regional transit agency for Maricopa County. Created in 1985 with the passage of Proposition 300, RPTA is a political subdivision of Arizona overseen by an 18-member board of elected officials. Membership is open to all municipalities in Maricopa County and to the County government. Current Valley Metro RPTA Board member agencies comprise Avondale, Buckeye, Chandler, El Mirage, Fountain Hills, Gilbert, Glendale, Goodyear, Maricopa County, Mesa, Peoria, Phoenix, Scottsdale, Surprise, Tempe, Tolleson, Wickenburg, and Youngtown. With the passage of Proposition 400 in November 2004, RPTA is the recipient of the transit portion of the twenty-year countywide 0.5% sales tax fund commencing in 2006 and running through 2025.
VMR was formed in 2002 to design, construct and operate a 66-mile high-capacity transit system. Member cities comprise Chandler, Glendale, Mesa, Phoenix and Tempe. VMR is responsible for administration and oversight of the design, construction and operation of light rail, and for receipt and disbursement of funds from federal, state, local and other funding sources. The VMR Board is empowered to enter into contracts for design and construction, hire or contract for staff and undertake extensions to the system. The member cities of VMR retain power of eminent domain and ownership of real estate with agreements established for property use by VMR. The cities are responsible for providing annual funding for the light rail project through their annual or biannual budgets, in addition to recommending light rail corridors within their city boundaries.
The following chart depicts the policy organization for Valley Metro and the relationships to key stakeholders:
Valleymetro.org Executive Summary 3 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
SERVICE CHARACTERISTICS VMR operates the only light rail system within the Phoenix Metropolitan area, with an average weekday ridership of 50,000 boardings. Weekday trains run with two cars at 12 minute intervals during peak hours and 15-20 minute intervals off-peak. VMR operates a fleet of 50 light rail vehicles traveling over 10,000 miles each weekday, on a 26-mile alignment, serving 35 stations within the cities of Phoenix, Tempe, and Mesa. VMR’s service area encompasses 40.4 square miles within the Phoenix Metropolitan area. FARE POLICY Effective March 2013, the current Regional Fare Policy is as follows:
Visit Valley Metro’s website at https://www.valleymetro.org for details regarding the fare structure.
Valleymetro.org Executive Summary 4 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
STRATEGIC PLAN, VISION, AND GOALS In January 2015, the Valley Metro RPTA and Valley Metro Rail Boards adopted the Valley Metro Strategic Plan for FY16 through FY20. The Strategic Plan provides clear definition of the purpose of the organization and establishes realistic goals and objectives for a five-year period. This plan ensures the most effective use of the organization’s resources by focusing those resources on key priorities. Below are the five, overarching goals identified in the Strategic Plan:
Increase customer focus
Advance performance based operation
Grow transit ridership
Focus on economic development, regional competitiveness and financial resources
Advance the value of transit
We are currently evaluating and updating the Valley Metro Strategic Plan for FY19 through FY23. PRIORITIES AND ISSUES We will continue to work on existing initiatives in FY19 in the areas of:
Respect the Ride Campaign
Transit Asset Management Plan (State of Good Repair)
Staff Development (Shifting Gears)
On-going evaluation of staffing needs
A significant priority for FY19 will be the opening of the Gilbert Road Extension (1.9 miles) and the 50th Street Station. Each capital extension requires a significant amount of testing and start-up activity prior to revenue operations in order to ensure all operational requirements are met, before opening to the public.
Valleymetro.org Executive Summary 5 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
FY19 BUDGET OVERVIEW Total operating and capital budget for FY19 is $308.1 million (M), an increase of $42.7M or 16% from FY18 budget.
FY18 vs FY19 Budget Comparison
$250 $239.5 $200 $195.2 $150
MILLIONS $100
$50 $70.2 $68.7
$0 Operating Capital FY18 Budget FY19 Budget
Valleymetro.org Executive Summary 6 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
SOURCES OF FUNDS Operating sources of funds are $68.7M, a decrease of $1.6M or 2% from the FY18 budget. The primary sources are detailed below:
Fare revenue is forecasted at $14.3M, which is flat from FY18, based on current trends in average fare and ridership.
Member city funding of $38.2M is up from $35.1M. This funding is used for rail operations and maintenance, agency operating, and future project development expenses. It also includes two months of operations for Gilbert Road Extension.
Public Transportation Fund (PTF) sales tax revenue is $11.4M. PTF funding requirements for project development activities are down by $3.0M, primarily related to Northwest Phase II being moved into the capital phase of the project.
Capital sources of funds are $239.5M, an increase of $44.3M or 23% from the FY18 budget. The primary sources are detailed below:
Federal funds are programmed at $164.3M to support Gilbert Road Extension, Tempe Streetcar, and Operations & Maintenance Center (OMC) expansion projects’ design and construction activities, as well as systemwide improvements.
Member city funding is $33.8M, down from $53.1M. These funds from Phoenix, Mesa, and Tempe are for the design and construction of their capital projects.
PTF sales tax revenue is $18.5M, up from $15.5M in FY18 primarily due to funding for Tempe Streetcar, South Central, OMC Expansion, and Systemwide Improvements.
FY17 Actual FY18 Budget FY19 Budget Sources of Funds
Operating *Note Advertising $ 1,100,000 $ 1,100,000 $ 1,100,000 Fares 13,363,000 14,300,000 14,343,000 Federal Funds 2,394,000 4,392,000 2,682,000 1 MAG Funds 500,000 500,000 500,000 Member City Contributions 29,837,000 35,092,000 38,177,000 2 Public Transportation Funds 6,075,000 14,362,000 11,382,000 3 Regional Area Road Funds 500,000 500,000 500,000 Other 41,000 - - Total Operating 53,810,000 70,246,000 68,684,000
Capital Federal Funds 45,339,000 126,206,000 164,286,000 4 Member City Contributions 7,573,000 53,060,000 33,657,000 5 Public Transportation Funds 3,349,000 15,541,000 18,515,000 6 TPAN - - 23,000,000 7 Other 188,000 392,000 - Total Capital 56,449,000 195,199,000 239,458,000
Total Sources of Funds $ 110,259,000 $ 265,445,000 $ 308,142,000
*Explanations for significant changes from prior year are included in the Budget Analysis section of this document.
Valleymetro.org Executive Summary 7 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
USES OF FUNDS Operating uses of funds are $68.7M, a decrease of $1.6M or 2% from the FY18 budget. The primary uses are detailed below:
Revenue operations is $52.0M, up from $47.9M due to maintenance costs to maintain the system in a state of good repair, continued increase fare inspection, and security resources. It also includes two months of operations for Gilbert Road Extension and 50th Street Station.
Future project development is $14.9M, down by $5.8M primarily due to decrease in planning activities related to future corridors and system planning.
Capital uses of funds are $239.5M, an increase of $44.3M or 23% from the FY18 budget. The primary uses are detailed below:
Gilbert Road Extension and 50th Street Station are in the final phases of construction and scheduled for operations in FY19.
Tempe Streetcar will be the next alignment to come on board and construction activity levels will remain similar to FY18.
Both South Central and Northwest Phase II projects will ramp up beginning in FY19.
Systemwide Improvements will increase in FY19, due to continued payments for the new fleet of eleven Siemens light rail vehicles.
FY17 Actual FY18 Budget FY19 Budget Uses of Funds
Operating *Note Rail Operations & Maintenance $ 41,481,000 $ 47,943,000 $ 52,041,000 8 Future Project Development 11,185,000 20,718,000 14,909,000 9 Agency Operating 1,144,000 1,585,000 1,734,000 Total Operating 53,810,000 70,246,000 68,684,000
Capital Gilbert Road 33,233,000 77,789,000 65,901,000 10 50th Street Station 3,816,000 11,363,000 8,779,000 11 Tempe Streetcar 8,058,000 46,477,000 48,071,000 12 South Central 6,000 36,100,000 62,353,000 13 Northwest Phase II - - 21,737,000 14 OMC Expansion - 3,197,000 7,114,000 15 Northwest Phase I 691,000 - - Central Mesa 1,213,000 1,961,000 234,000 16 Systemwide Improvements 9,380,000 18,312,000 25,269,000 17 Total Capital 56,397,000 195,199,000 239,458,000
Total Uses of Funds $ 110,207,000 $ 265,445,000 $ 308,142,000
*Explanations for significant changes from prior year are included in the Budget Analysis section of this document.
Valleymetro.org Executive Summary 8 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
BUDGET ANALYSIS The following is an analysis of the major changes in the FY19 Budget versus the FY18 Budget. The number in the "Note" column corresponds to the "Note" column in the "Sources of Funds" and "Uses of Funds" tables.
Note Analysis Comment - Sources of Funds Federal funding for operating is down from $4.4M to $2.7M primarily due to 1 decreased activity in Future Project Development.
Member city contributions for operating are up from $35.1M to $38.2M in FY19 due to base service increase of $4.1M, $0.1M increase for agency operating, and 2 $1.1M decrease for Future Project Development. Gilbert Road Extension and 50th Street Station are scheduled to be in revenue operation in May 2019.
O P E R A T I N G N I T A R E P O PTF sales tax revenue funding requirements for future project development are 3 down by $3.0M, primarily related to Northwest Phase II being moved into the capital phase of the project.
Federal funding for capital is up from $126.2M to $164.3M. The increases are forecasted in South Central ($60.7M), Systemwide Improvements ($6.7M), 4 Tempe Streetcar ($2.0M) and OMC Expansion ($3.1M). Decreases are due in Gilbert Road Extension ($33.1M) and Central Mesa - SCADA ($1.4M) project completions.
Member city contributions for capital projects total $33.7M for FY19. Project amounts for FY19 include; South Central funding ($1.4M), 50th Street Station 5 ($8.8M), and Northwest Phase II ($20.0M) all being funding by City of Phoenix, Gilbert Road Extension ($2.9M) funding by City of Mesa, and Tempe Streetcar ($0.5M) funding by City of Tempe.
C A P I T A L A T I P A C PTF sales tax funding will be increased from $15.5M to $18.5M, primarily due to 6 design costs for South Central ($0.2M), OMC Expansion ($0.8M) and Northwest Phase II ($1.7M).
Gilbert Road Extension is using Transportation Project Advancement Notes 7 (TPAN) with a combination of federal and City of Mesa funds. The anticipated TPAN needs in FY19 are $23.0M.
Valleymetro.org Executive Summary 9 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
Note Analysis Comment - Uses of Funds Operation & Maintenance operating costs are forecasted to increase by 9% over FY18 levels. Maintenance costs rise with scheduled preventive maintenance activities to maintain the system in a state of good repair. Increased fare 8 inspection and security resources for the Respect the Ride campaign continues. Gilbert Road Extension and 50th Street Station are scheduled to be in revenue operation in May 2019.
Planned Future Project Development costs are down by $5.8M due to a decrease
O P E R A T I N G N I T A R E P O in planning activities related to future corridors and system planning. This is 9 primarily due to completion of project development of Northwest Phase II, South Central, and OMC Master Plan and Phasing Study.
Gilbert Road Extension project cost are down $11.9M due to construction being 10 in the final year. Annual expenditures are forecasted at $65.9M. Revenue operations are scheduled to begin in May 2019. 50th Street Station project costs are down by $2.6M due to the construction 11 phase being in the final year. Revenue operations are scheduled to begin in May 2019. Tempe Streetcar project costs are up $1.6M. Annual expenditures are forecasted 12 at $48.1M, which includes Non-Prior Rights (NPR) costs of $9.8M.
South Central project and the Downtown Connector subproject activities to ramp 13 up in FY19. Annual design and project management expenditures are planned at $62.4M. Northwest Phase II project pre-construction activities begin in FY19. Annual C A P I T A L A T I P A C 14 design and project management expenditures are forecasted at $21.7M.
OMC Expansion project pre-construction activities continue in FY19. Annual 15 design and project management expenditures are forecasted at $7.1M.
Central Mesa Extension project costs are down by $1.7M. Remaining activity in 16 FY19 is related to the train signal control system upgrade.
Systemwide Improvements include the payments of 8 light rail vehicles for 17 future extensions ($15.5M), LRV overhauls ($3.7M), LRV Wi-Fi ($2.6M), Transit Power Substations HVAC ($0.8M), and other activities ($2.5M).
Valleymetro.org Executive Summary 10 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
STAFFING OVERVIEW RPTA and VMR budgets are developed with a unified staff plan, with department managers planning the level of effort required to meet the bus and rail activities. For FY19, there are 376 employees budgeted; 151 Full Time Equivalent (FTE) positions are budgeted to RPTA activities and 225 FTEs to VMR activities. Staffing levels are reviewed on an annual basis to fulfill work requirements for the coming year. Salary and fringe benefit compensation levels are measured against comparable regional agencies, member cities, and peer transit agencies located in the western U.S. FY19 COMPENSATION AND FRINGE BENEFIT ASSUMPTIONS Total compensation budget is based on a 3.0% increase. For staff salary changes, merit increases are based on employee performance. Agency healthcare costs are forecasted to increase by 5% over FY18 levels. FY19 STAFFING NEEDS Valley Metro RPTA and Valley Metro Rail are in a period of significant expansion of the system and services. In order to meet the needs of our members by delivering service and meeting project deadlines, Valley Metro is in need of additional resources.
In FY19, we will have three active rail capital construction projects and another four more projects in the design phase. Rail service will be increased with the opening of the Gilbert Road Extension in the East Valley (1.9 miles) and the 50th Street Station, both scheduled to open in May 2019. The VMR vehicle fleet will also increase in size over the next few years, due to the addition of the Siemens light rail vehicles and the Brookville streetcar vehicles. Both of these fleets will have their own sets of parts inventory and specific maintenance requirements.
Of the 12 positions requested for FY19, 11 will directly support VMR activities and one will support RPTA activities.
VMR staff additions:
Digital Communications Lead - Marketing Labor Compliance Officer - Construction Project Coordinator - Construction Office Engineer - Construction Light Rail Technical Trainer – LRV Maintenance LRV Maintenance Technician II – LRV Maintenance LRV Maintenance Technician I – LRV Maintenance Maintenance Engineer – Facilities Maintenance Vandalism Technician – Facilities Maintenance Traction Power Systems Technician – Traction Power Track Maintainer – Track Maintenance
RPTA staff additions:
Administrative Assistant – Marketing
Valleymetro.org Executive Summary 11 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
Below is a table summarizing the changes in staff positions for FY19.
Mid-Year FY19 FY18 Budget Additions Additions FY19 Budget Positions by Division
Agency Business, Technology & Services 47 2 49 Capital and Service Development 52 1 3 56 Communication & Strategic Initiatives 10 10 Executive Office 5 5 Finance 22 22 Human Resources 10 10 Internal Audit Services 2 2 Legal 14 14 Operations and Maintenance - RPTA 66 66 Operations and Maintenance - VMR 122 3 7 132 Safety and Security 10 10
Total Positions by Division 360 4 12 376 RPTA 150 0 1 151 VMR 210 4 11 225
Valleymetro.org Executive Summary 12 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
FIVE-YEAR OVERVIEW VMR currently has a number of transit projects in various phases of planning, design, or construction. The sources and uses of funds associated with these projects and activities are projected to be $2.3 billion (B) through the five-year planning horizon of FY19 through FY23. These uses and sources of funds are summarized as follows: SOURCES OF FUNDS 5-Year Total Sources of Funds ($,000)
Operating Advertising $ 5,500 Fares 73,536 Federal Funds 8,173 MAG Funds 2,500 Member City Contributions 227,380 Public Transportation Funds 53,998 Regional Area Road Funds 2,500 Total Operating 373,586
Capital Federal Funds 962,791 Member City Contributions 712,451 Public Transportation Funds 237,538 TPAN 23,000 Total Capital 1,935,779
Total Sources of Funds $ 2,309,365
USES OF FUNDS 5-Year Total Five-Year Forecast ($,000)
Operating Rail Operations & Maintenance $ 302,335 Future Project Development 62,044 Agency Operating Budget 9,207 Total Operating 373,586
Capital Gilbert Road Extension 72,308 50th Street Station 8,779 Tempe Streetcar 142,300 South Central 904,389 Northwest Phase II 287,223 OMC Expansion 40,080 Capitol I-10 West Phase I 241,820 West Phoenix 184,573 Central Mesa Extension 234 Systemwide Improvements 54,073 Total Capital 1,935,779
Total Five-Year Forecast $ 2,309,365
Valleymetro.org Executive Summary 13 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
OPERATING BUDGET
Valleymetro.org Operating Budget 14 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
OPERATING OVERVIEW The total operating budget for FY19 is $68.7M, down $1.6M or 2% from FY18.
FY17 Actual FY18 Budget FY19 Budget Operating
Rail Operations & Maintenance $ 41,481,000 $ 47,943,000 $ 52,041,000 Future Project Development 11,185,000 20,718,000 14,909,000 Agency Operating 1,144,000 1,585,000 1,734,000
Total Operating $ 53,810,000 $ 70,246,000 $ 68,684,000
FY19 Operating
Rail Operations & Maintenance 76% Future Project Development 22%
Agency Operating 2%
Valleymetro.org Operating Budget 15 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
RAIL OPERATIONS & MAINTENANCE Valley Metro Rail (VMR) will provide approximately 3.4 million miles of service in FY19. Total miles delivered are very similar to FY18, with a slight increase due to Gilbert Road Extension scheduled opening in May 2019. The 50th Street Station is also scheduled to open in May 2019. VMR contracts with Alternate Concepts, Inc. (ACI) to provide service to Phoenix, Tempe, and Mesa at 44 platform stations.
Rail Operations & Maintenance is composed of four categories; Rail Operations, Rail Vehicle Maintenance, Maintenance of Way, and Administrative Support. Overall there is an increase of $4.1M or 9% over FY18. Each of the four categories are detailed below.
FY17 Actual FY18 Budget FY19 Budget Rail Operations & Maintenance
Rail Operations $ 18,486,000 $ 20,184,000 $ 21,864,000 Rail Vehicle Maintenance 7,472,000 8,076,000 8,872,000 Maintenance of Way 10,261,000 12,718,000 12,609,000 Administrative Support 5,262,000 6,965,000 8,696,000
Total Rail Operations & Maintenance $ 41,481,000 $ 47,943,000 $ 52,041,000
RAIL OPERATIONS Rail operations is responsible for ensuring the overall safety and reliability of the rail system. This includes the operation control center, field supervision, and train operators.
FY17 Actual FY18 Budget FY19 Budget Rail Operations
Personal Services $ 348,000 $ 218,000 $ 279,000 Computers & Software 20,000 - 50,000 Contractual Services 43,000 104,000 50,000 Equipment 601,000 30,000 - Non-Revenue Vehicles 33,000 - - Other Capital - 24,000 25,000 Propulsion Power 2,531,000 2,873,000 2,770,000 Safety & Security 4,249,000 6,154,000 7,027,000 Supplies 35,000 43,000 20,000 Transit Services 10,375,000 10,580,000 11,311,000 Travel & Meetings 6,000 31,000 15,000 Other 245,000 127,000 317,000
Total Rail Operations $ 18,486,000 $ 20,184,000 $ 21,864,000
The costs for rail operations are forecasted to increase by 8%, and there are two primary areas affecting the increase. First, transit service will increase due to ACI contractual rate increases and resources needed to support the Gilbert Road Extension. Second, safety and security expenses will increase due to the continued initiative of the Respect the Ride Campaign. This will provide increased presence on the light rail and platforms by increasing contractor Allied Universal’s fare inspection and security officers, as well as local support from Tempe and Mesa off duty police officers. The Gilbert Road Extension 1.9-mile extension and 50th Street Station are scheduled to open May 2019.
Valleymetro.org Operating Budget 16 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
RAIL VEHICLE MAINTENANCE Rail vehicle maintenance is responsible for the preventive and corrective maintenance required to preserve a high level of vehicle availability, reliability, and cleanliness.
FY17 Actual FY18 Budget FY19 Budget Rail Vehicle Maintenance
Personal Services $ 4,443,000 $ 4,505,000 $ 4,391,000 Equipment 27,000 30,000 - Parts 2,969,000 3,540,000 4,416,000 Other 33,000 1,000 65,000
Total Rail Vehicle Maintenance $ 7,472,000 $ 8,076,000 $ 8,872,000
Costs are forecasted to increase by 10%, primarily due to the rising cost of materials and the increase in overhauls for major systems and components.
MAINTENANCE OF WAY Maintenance of way is responsible for maintaining all rail systems and facilities, including: track, communications, signals, stations, traction power distribution, and overhead catenary systems.
FY17 Actual FY18 Budget FY19 Budget Maintenance of Way
Personal Services $ 3,374,000 $ 3,623,000 $ 4,256,000 Computers & Software 82,000 122,000 150,000 Contractual Services 2,639,000 3,890,000 4,305,000 Equipment 1,328,000 338,000 589,000 Fuel & Lubricants 204,000 242,000 242,000 Other Capital - 234,000 - Parts 886,000 1,047,000 1,123,000 Site Improvements - 889,000 - Utilities 1,372,000 1,866,000 1,498,000 Other 376,000 467,000 446,000
Total Maintenance of Way $ 10,261,000 $ 12,718,000 $ 12,609,000
Overall, the FY19 budget levels are very similar to FY18. There is an increase in personal costs due to additional staff to support the 50th Street Station and the Gilbert Road Extension. There is a decrease in site improvements due to scheduled projects’ completion.
Valleymetro.org Operating Budget 17 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
ADMINISTRATIVE SUPPORT Rail operations, rail vehicle maintenance, and maintenance of way are supported by administrative activities including public safety and security, marketing and customer service, legal and procurement, finance and accounting, risk management, and information systems.
FY17 Actual FY18 Budget FY19 Budget Administrative Support
Personal Services $ 1,376,000 $ 1,671,000 $ 2,236,000 Advertising 398,000 423,000 419,000 Computers & Software 136,000 240,000 254,000 Contingency - 87,000 386,000 Contractual Services 321,000 663,000 983,000 Equipment 10,000 - - Furniture & Fixtures 28,000 22,000 15,000 Insurance 1,438,000 1,545,000 1,565,000 Non-Revenue Vehicles 91,000 - 205,000 Supplies 48,000 158,000 129,000 Travel & Meetings 18,000 30,000 40,000 Other 1,398,000 2,126,000 2,464,000
Total Administrative Support $ 5,262,000 $ 6,965,000 $ 8,696,000
Administrative costs for rail operations are up $1.7M over FY18. Budget drivers include additional staff effort in the areas of increased service and support ($0.6M), increased contingency due to additional service ($0.3M), replacement of four non-revenue vehicles ($0.2M), consultant development of the federally mandated Transit Asset Management (TAM) plan ($0.2M), and other miscellaneous items ($0.4M).
Valleymetro.org Operating Budget 18 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
FUTURE PROJECT DEVELOPMENT The proposed HCT system will include over 66 miles of service in four cities within the next 15 years. Before any specific transit corridor is initiated, VMR will study and configure the system to better understand how corridors connect, determine facility requirements, and define operating parameters. System planning is the first step in developing the HCT network. It is followed by the corridor planning for individual corridors. Once technologies and alignments are determined in each corridor, proposed engineering is engaged.
A key objective during project development is to define all aspects of each HCT corridor project, identify the appropriate transit technology, the alignment, stations, park-and-rides, maintenance facilities, traction power substations, and bus interface. VMR staff is committed to working closely with policy makers, public agencies, businesses, community stakeholders, utility companies to assure an early and complete understanding of their needs and issues, before design begins. VMR is responsible to assure that adequate funding is in place to implement, maintain and operate the light rail program. VMR staff works closely with federal, state, regional and local agencies that provide present and future funding for the light rail system. VMR, in coordination with all affected agencies, annually updates the HCT element of the Transit Life Cycle Program, which defines light rail projects, funding, and schedule.
Finally, VMR assists with light rail station area planning by actively engaging to support member cities’ efforts to facilitate Transit Oriented Development (TOD). A list of projects and studies to take place in FY19 are included below:
FY19 Budget Future Project Development
Capitol/I-10 West Phase I $ 1,409,000 West Phoenix Transit Corridor Study 2,836,000 Northeast Phoenix Transit Corridor Study 116,000 I-10/I-17 Bus Ramp Design 270,000 Downtown Chandler Alternatives Analysis 293,000 Fiesta District Alternatives Analysis 407,000 16th Street Station Feasibility Study 61,000 East Valley Streetcar System Study 308,000 Systems Planning & Project Development 7,686,000 Capital Project Development Administration 1,523,000
Total Future Project Development $ 14,909,000
Valleymetro.org Operating Budget 19 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
The project costs fluctuate based on progress of the individual projects being planned or studied. The primary reason for the $5.8M decrease from FY18 is that three projects have moved into the capital phase; South Central, Northwest Phase II, and OMC Master Plan.
FY17 Actual FY18 Budget FY19 Budget Future Project Development
Corridor & Facility Personal Services $ 535,000 $ 689,000 $ 691,000 Contractual Services 5,674,000 13,051,000 9,254,000 Other 310,000 370,000 341,000 Total Corridor & Facility 6,519,000 14,110,000 10,286,000
Systems Development Personal Services 121,000 272,000 340,000 Contractual Services 107,000 138,000 88,000 Other 75,000 146,000 168,000 Total Systems Development 303,000 556,000 596,000
Administrative Support Personal Services 1,338,000 2,212,000 1,801,000 Advertising - 12,000 22,000 Computers & Software 15,000 190,000 28,000 Contractual Services 2,301,000 2,372,000 1,182,000 Other Capital - 10,000 10,000 Supplies 13,000 29,000 7,000 Travel & Meetings 11,000 30,000 29,000 Other 685,000 1,197,000 948,000 Total Administrative Support 4,363,000 6,052,000 4,027,000
Total Future Project Development $ 11,185,000 $ 20,718,000 $ 14,909,000
Projects and studies planned for FY19 and associated funding sources are listed below:
Capitol/I-10 West Phase I is anticipated to be funded with federal funds ($1.1M) and PTF ($0.3M)
West Phoenix Transit Corridor Study is anticipated to be funded with PTF ($2.8M)
Northeast Phoenix Transit Corridor Study is to be funded by member city contributions ($0.1M)
I-10/I-17 Bus ramp design is to be funded with federal funds ($0.3M)
Downtown Chandler Alternative Analysis is to be funded by member city contributions ($0.3M)
Fiesta District Alternative Analysis is to be funded by member city contributions ($0.4M)
16th Street Advanced Feasibility Study is to be funded by member city contributions ($0.1M)
East Valley Streetcar System Study is to be funded by member city contributions ($0.3M)
Valleymetro.org Operating Budget 20 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
AGENCY OPERATING Agency operating costs are general and administrative costs of VMR which are not directly allocable to passenger operations or to capital projects. Typical expenses include agency memberships, public meetings, legislative representation, annual financial audit, and leadership management activities which address interactions with member cities and strategic policy making.
FY17 Actual FY18 Budget FY19 Budget Agency Operating
Administrative Support Personal Services $ 533,000 $ 854,000 $ 923,000 Contractual Services 192,000 116,000 202,000 Supplies 19,000 21,000 37,000 Travel & Meetings 56,000 70,000 44,000 Other 344,000 524,000 528,000 Total Administrative Support 1,144,000 1,585,000 1,734,000
Total Agency Operating $ 1,144,000 $ 1,585,000 $ 1,734,000
Agency operating costs are up slightly over FY18, primarily due to increases in areas of legal, accounting, and audit activities.
Valleymetro.org Operating Budget 21 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
OVERHEAD ALLOCATION VMR AGENCY Agency overhead costs include general and administrative costs of VMR, directly related to the corporate office. Costs are directly allocable to labor charged by VMR corporate office staff to each project budget. Costs within this budget include rent, leased equipment, computer software, equipment, software maintenance, offsite hosting, and personnel costs for information technology, accounting, and procurement.
FY17 Actual FY18 Budget FY19 Budget Overhead Pool
Expenses Personal Services $ 899,000 $ 1,077,000 $ 1,149,000 Advertising 2,000 8,000 10,000 Computers & Software 402,000 468,000 481,000 Contractual Services 275,000 287,000 318,000 Fuel & Lubricants 23,000 36,000 24,000 Furniture & Fixtures - 294,000 64,000 Leases/Rent 755,000 1,096,000 1,044,000 Site Improvements 9,000 - 109,000 Supplies 128,000 140,000 192,000 Travel & Meetings 27,000 72,000 83,000 Other 197,000 485,000 517,000 Total Expenses 2,717,000 3,963,000 3,991,000
Total Overhead Pool $ 2,717,000 $ 3,963,000 $ 3,991,000
Total overhead cost for FY19 is planned to remain very close to FY18 levels.
Valleymetro.org Operating Budget 22 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
Overhead costs are allocated based on ratios of actual wages expended for VMR operating and capital projects. The table below shows the amount of overhead allocated to each project.
FY17 Actual FY18 Budget FY19 Budget Overhead Pool
Allocation by Project Rail Operations & Maintenance $ 592,000 $ 629,000 $ 810,000 Future Project Development 1,003,000 1,338,000 1,115,000 Agency Operating 278,000 386,000 374,000 Gilbert Road Extension 385,000 447,000 398,000 50th Street Station 99,000 282,000 144,000 Tempe Streetcar 278,000 487,000 354,000 South Central 2,000 354,000 499,000 Northwest Phase II - - 109,000 OMC Expansion - - 135,000 Central Mesa Extension 28,000 36,000 49,000 Northwest Phase I 35,000 - - Systemwide Improvements 17,000 4,000 4,000 Total Allocation by Project 2,717,000 3,963,000 3,991,000
Total Overhead Pool $ 2,717,000 $ 3,963,000 $ 3,991,000
Valleymetro.org Operating Budget 23 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
CAPITAL BUDGET
Valleymetro.org Capital Budget 24 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
CAPITAL OVERVIEW The total capital budget for FY19 is $239.5M, up $44.3M or 23% from FY18.
FY17 Actual FY18 Budget FY19 Budget Capital
Gilbert Road Extension $ 33,233,000 $ 77,789,000 $ 65,901,000 50th Street Station 3,816,000 11,363,000 8,779,000 Tempe Streetcar 8,058,000 46,477,000 48,071,000 South Central 6,000 36,100,000 62,353,000 Northwest Phase II - - 21,737,000 OMC Expansion - 3,197,000 7,114,000 Northwest Phase I 691,000 - - Central Mesa Extension 1,213,000 1,961,000 234,000 Systemwide Improvements 9,380,000 18,312,000 25,269,000
Total Uses of Funds 56,397,000 195,199,000 239,458,000
Capital activities fluctuate based on the progress or phase of the capital projects. For FY19, Gilbert Road Extension and 50th Street Station are in their final year of construction. Tempe Streetcar construction activity continues and South Central construction ramps up. Northwest Phase II construction is starting in FY19.
FY19 Capital South Central 26% Northwest Phase II 9%
OMC Expansion 3% Tempe Streetcar 20% Systemwide Improvements 11%
50th Street Central Mesa Gilbert Road Extension Station Extension 4% <1% 27%
Valleymetro.org Capital Budget 25 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
GILBERT ROAD EXTENSION The Gilbert Road Extension will extend the alignment 1.9 miles on Main Street from Mesa Drive to Gilbert Road in Mesa. At Gilbert Road, there are significant transit connections and the ability to serve the growing transit demand in the East Valley. This extension will attract new riders and increase development opportunities in central Mesa.
FY17 Actual FY18 Budget FY19 Budget Gilbert Road Extension
Project Costs Personal Services $ 787,000 $ 1,103,000 $ 1,183,000 Advertising 1,000 1,000 - Computers & Software 73,000 137,000 131,000 Contractual Services 25,254,000 64,370,000 56,041,000 Leases/Rent - 207,000 207,000 Non-Prior Right Utilities 733,000 2,143,000 1,010,000 Non-Revenue Vehicles - 22,000 - Real Estate 3,842,000 8,100,000 5,803,000 Supplies 73,000 33,000 112,000 Travel & Meetings 5,000 16,000 51,000 Other 568,000 825,000 829,000 Total Project Costs 31,336,000 76,957,000 65,367,000
Associated Costs Art 60,000 469,000 301,000 Contractual Services 1,837,000 363,000 233,000 Total Associated Costs 1,897,000 832,000 534,000
Total Gilbert Road Extension $ 33,233,000 $ 77,789,000 $ 65,901,000
Gilbert Road Extension is in the final phases of construction and scheduled for operations in May 2019.
Valleymetro.org Capital Budget 26 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
50TH STREET STATION The 50th Street Station is the first new station along the existing Valley Metro light rail system. The station will be a model of increased accessibility with design elements incorporated as a result of the PHX Innovation Games challenge issued by the City of Phoenix Mayor’s Office.
The 50th Street Station is the first light rail project slated under Phoenix Transportation 2050 (T2050).
FY17 Actual FY18 Budget FY19 Budget 50th Street Station
Project Costs Personal Services $ 198,000 $ 665,000 $ 418,000 Computers & Software 10,000 55,000 18,000 Contractual Services 3,221,000 7,911,000 7,845,000 Furniture & Fixtures 4,000 - - Non-Prior Right Utilities - 1,266,000 - Real Estate 206,000 880,000 100,000 Supplies 3,000 23,000 54,000 Travel & Meetings - 8,000 4,000 Other 136,000 414,000 254,000 Total Project Costs 3,778,000 11,222,000 8,693,000
Associated Costs Art 38,000 141,000 86,000 Total Associated Costs 38,000 141,000 86,000
Total 50th Street Station $ 3,816,000 $ 11,363,000 $ 8,779,000
The 50th Street Station is in the final phases of construction and scheduled for operations in May 2019.
Valleymetro.org Capital Budget 27 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
TEMPE STREETCAR The Tempe Streetcar 3.1-mile alignment is the first modern streetcar line in the Valley. It will serve one of the highest transit ridership centers in the region and connect riders to Arizona State University, neighborhoods, major business centers, and regional events and destinations.
FY17 Actual FY18 Budget FY19 Budget Tempe Streetcar
Project Costs Personal Services $ 553,000 $ 1,216,000 $ 1,106,000 Computers & Software 10,000 150,000 69,000 Contractual Services 6,964,000 35,398,000 32,999,000 Non-Prior Right Utilities - 6,258,000 9,833,000 Non-Revenue Vehicles - 44,000 - Real Estate 2,000 1,528,000 2,414,000 Supplies 1,000 46,000 48,000 Travel & Meetings 6,000 19,000 59,000 Other 353,000 843,000 781,000 Total Project Costs 7,889,000 45,502,000 47,309,000
Associated Costs Art 44,000 154,000 262,000 Contractual Services 125,000 821,000 500,000 Total Associated Costs 169,000 975,000 762,000
Total Tempe Streetcar $ 8,058,000 $ 46,477,000 $ 48,071,000
Tempe Streetcar will be the next alignment, after FY19, to come on board. The construction activity levels will remain similar to FY18.
Valleymetro.org Capital Budget 28 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
SOUTH CENTRAL The South Central corridor is one of seven project areas identified by the U.S. Department of Transportation for inclusion in its Ladders of Opportunity Transportation Empowerment Pilot (LadderSTEP) program. The LadderSTEP Pilot program aims to build and restore connections, develop workforce capacity, and catalyze neighborhood revitalization through planned transportation projects.
The 5.5-mile South Central corridor will connect with the current light rail system in downtown Phoenix and operate south to Baseline Road.
FY17 Actual FY18 Budget FY19 Budget South Central
Project Costs Personal Services $ 4,000 $ 785,000 $ 1,288,000 Advertising - 3,000 3,000 Computers & Software - 157,000 205,000 Contractual Services - 29,857,000 40,387,000 Non-Prior Right Utilities - 600,000 1,612,000 Non-Revenue Vehicles - 22,000 120,000 OMC Expansion - 3,279,000 7,275,000 Real Estate - 500,000 10,000,000 Supplies - 21,000 48,000 Travel & Meetings - 17,000 15,000 Other 2,000 612,000 847,000 Total Project Costs 6,000 35,853,000 61,800,000
Associated Costs Art - 247,000 303,000 Contractual Services - - 250,000 Total Associated Costs - 247,000 553,000
Total South Central $ 6,000 $ 36,100,000 $ 62,353,000
The South Central project will continue to be in the design phase with construction expected to begin within FY19.
Valleymetro.org Capital Budget 29 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
NORTHWEST PHASE II In 2004, the Phoenix City Council approved the Northwest Extension to extend light rail from 19th Ave/Montebello to 25th Ave and Mountain View Rd. In 2007, the route was divided into two phases. The 3.2- mile Phase I on 19th Ave from Montebello to Dunlap Ave opened on March 19, 2016.
Now Phase II of the Northwest Extension will extend light rail 1.5 miles west on Dunlap Ave from 19th Ave, north on 25th Ave and across I-17 with a terminus near Metrocenter Mall.
FY17 Actual FY18 Budget FY19 Budget Northwest Phase II
Project Costs Personal Services $ - $ - $ 327,000 Advertising - - 3,000 Computers & Software - - 5,000 Contractual Services - - 18,501,000 Non-Prior Right Utilities - - 1,533,000 Real Estate - - 1,000,000 Supplies - - 13,000 Travel & Meetings - - 9,000 Other - - 170,000 Total Project Costs - - 21,561,000
Associated Costs Art - - 176,000 Total Associated Costs - - 176,000
Total Northwest Phase II $ - $ - $ 21,737,000
The Northwest Phase II project will continue to be in the design phase with construction expected to begin within FY19.
Valleymetro.org Capital Budget 30 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
OPERATIONS & MAINTENANCE CENTER EXPANSION The Rail Operations and Maintenance Center (OMC), built in 2006 for the original initial 20-mile light rail line, provides office space and facilities to store, inspect, maintain, clean, and operate trains. With the expansion of the light rail system and streetcar system, the OMC also needs to expand. The expansion includes additional storage track, maintenance buildings, cleaning structures, and staff facilities.
FY17 Actual FY18 Budget FY19 Budget OMC Expansion
Project Costs Personal Services $ - $ - $ 465,000 Contractual Services - 6,476,000 13,725,000 Supplies - - 5,000 Travel & Meetings - - 1,000 Other - - 193,000 Total Project Costs - 6,476,000 14,389,000
Total OMC Expansion $ - $ 6,476,000 $ 14,389,000
The OMC Expansion project will continue to be in the design phase with construction expected to begin within FY19.
Note: Expansion of the OMC is required in order to support future expansions. South Central project budget includes OMC Expansion costs, FY18 $3.3M and FY19 $7.3M. NORTHWEST PHASE I Construction of the 3.2-mile extension began in January 2013 and extended light rail north on 19th Avenue from Montebello to Dunlap Avenue. The extension opened on March 19, 2016 and serves approximately 5,000 riders per day.
FY17 Actual FY18 Budget FY19 Budget Northwest Phase I
Project Costs Personal Services $ 78,000 $ - $ - Computers & Software 6,000 - - Contractual Services 441,000 - - Non-Prior Right Utilities 19,000 - - Real Estate 134,000 - - Other 13,000 - - Total Project Costs 691,000 - -
Total Northwest Phase I $ 691,000 $ - $ -
Valleymetro.org Capital Budget 31 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
CENTRAL MESA EXTENSION The Central Mesa Extension opened for operations in August 22, 2015. The remaining project costs are related to the Supervisory Control and Data Acquisition (SCADA) network upgrade.
FY17 Actual FY18 Budget FY19 Budget Central Mesa Extension
Project Costs Personal Services $ 55,000 $ 154,000 $ 169,000 Contractual Services 1,013,000 1,757,000 - Equipment 80,000 - - Leases/Rent 5,000 - - Non-Prior Right Utilities 20,000 - - Real Estate 10,000 - - Other 30,000 50,000 65,000 Total Project Costs 1,213,000 1,961,000 234,000
Total Central Mesa Extension $ 1,213,000 $ 1,961,000 $ 234,000
SCADA went live in December 2017. Work related to the reporting will continue into FY19. SYSTEMWIDE IMPROVEMENTS Systemwide improvements include projects necessary to maintain a transit system in a state of good repair to provide efficient, reliable, and safe service. Projects included are component overhauls, fare vending machine upgrades, and light rail vehicle fleet expansion.
FY17 Actual FY18 Budget FY19 Budget Systemwide Improvements
Project Costs Personal Services $ 33,000 $ 10,000 $ 204,000 Computers & Software 138,000 1,538,000 1,498,000 Contractual Services 8,882,000 7,947,000 15,841,000 Equipment - 3,965,000 3,655,000 Infrastructure - 840,000 - Non-Revenue Vehicles 118,000 155,000 - Other Capital - 3,852,000 3,687,000 Parts - - 317,000 Site Improvements 186,000 - - Travel & Meetings 6,000 - 44,000 Other 17,000 5,000 23,000 Total Project Costs 9,380,000 18,312,000 25,269,000
Total Systemwide Improvements $ 9,380,000 $ 18,312,000 $ 25,269,000
Systemwide Improvements will increase in FY19, due to continued payments for the new fleet of Siemens light rail vehicles.
Valleymetro.org Capital Budget 32 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
CAPITAL DEBT SERVICE Debt Service is shown in the VMR budget for information only. The Debt Service budget is developed and included within the RPTA budget. The figures below represent the combined interest and principal amounts due for PTF Bond issuance to support Capital Rail projects.
FY17 Actual FY18 Budget FY19 Budget Debt Service
Administration Interest $ 7,142,000 $ 3,269,000 $ 2,937,000 Principal 11,617,000 12,799,000 13,460,000 Total Administration 18,759,000 16,068,000 16,397,000
Total Debt Service $ 18,759,000 $ 16,068,000 $ 16,397,000
Valleymetro.org Capital Budget 33 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET Five Year Operating Forecast & Capital Program FISCAL YEAR 2019 – FISCAL YEAR 2023
Valleymetro.org 34 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
SUMMARY OVERVIEW FISCAL YEAR 2019 – FISCAL YEAR 2023
Valleymetro.org Summary Overview 35 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
FIVE-YEAR OVERVIEW The Valley Metro Rail (VMR) Five-Year Operating Forecast and Capital Program identifies anticipated operating costs, capital projects costs, and the associated funding sources. The FY19-FY23 Five-Year Operating Forecast and Capital Program is submitted to the Board of Directors (BOD) along with the FY19 Operating and Capital Budget. VALLEY METRO RAIL SERVICES VMR was formed to plan, design, construct, and operate the Valley Metro light rail transit (LRT) system. The original 20-mile alignment serving passengers in Phoenix, Tempe, and Mesa opened in December 2008. Two additional extensions have since been opened, Central Mesa Extension in Mesa and Northwest Phase I in Phoenix, creating a 26-mile LRT system.
An additional 40 miles of HCT are being planned for future years. See “Future Projects Development” for further information. The map below shows the projects.
Valleymetro.org Summary Overview 36 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
FIVE-YEAR FORECAST The total operating and capital budget forecast for the five year period of FY19-FY23 is $2.3B.
Five-Year Operating & Capital Forecast $600 $509.4 $500 $424.2 $388.9 $400 $373.9
$300
$239.5 MILLIONS $200
$100 $79.5 $82.3 $68.7 $70.3 $72.9 $0 FY19 FY20 FY21 FY22 FY23 Operating Capital
FY19 FY20 FY21 FY22 FY23 Total Five-Year Forecast ($,000)
Operating Rail Operations & Maintenance $ 52,041 $ 55,149 $ 58,937 $ 66,890 $ 69,318 $ 302,335 Future Project Development 14,909 13,333 12,138 10,681 10,983 62,044 Agency Operating Budget 1,734 1,786 1,840 1,895 1,952 9,207 Total Operating 68,684 70,268 72,915 79,466 82,253 373,586
Capital Gilbert Road Extension 65,901 2,455 1,459 2,493 - 72,308 50th Street Station 8,779 - - - - 8,779 Tempe Streetcar 48,071 75,865 16,152 2,212 - 142,300 South Central 62,353 192,598 166,601 260,054 222,783 904,389 Northwest Phase II 21,737 73,679 82,687 65,999 43,121 287,223 OMC Expansion 7,114 25,993 6,973 - - 40,080 Capitol I-10 West Phase I - 44,091 61,293 97,462 38,974 241,820 West Phoenix - - 29,034 72,839 82,700 184,573 Central Mesa Extension 234 - - - - 234 Systemwide Improvements 25,269 9,475 9,655 8,334 1,340 54,073 Total Capital 239,458 424,156 373,854 509,393 388,918 1,935,779
Total Five-Year Forecast $ 308,142 $ 494,424 $ 446,769 $ 588,859 $ 471,171 $ 2,309,365
Valleymetro.org Summary Overview 37 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
RIDERSHIP AND AVERAGE FARE Annual ridership is forecasted to grow an average of 1% annually through FY23. Additional passenger rides are developed in FY19 through FY23 forecast with the addition of the Gilbert Road Extension and Tempe Streetcar extensions. Gilbert Road Extension is schedule to start revenue service in May 2019 and Tempe Streetcar is schedule to start revenue service in March 2021
The forecasted average fare for rail is at $0.85 and streetcar is at $0.43.
FY19 FY20 FY21 FY22 FY23 Total Ridership (,000)
Phoenix 10,993 11,007 11,033 11,066 11,105 55,204 Tempe 3,681 3,326 3,396 3,574 3,542 17,519 Mesa 2,200 2,876 2,954 3,035 3,093 14,158
Total Ridership 16,874 17,209 17,383 17,675 17,740 86,881
Avg Fare - Rail $0.85 $0.85 $0.85 $0.85 $0.85 Avg Fare - Streetcar $0.43 $0.43 $0.43
Annual Ridership (Millions) 20.0 18.0 16.0 17.2 17.4 17.7 17.7 16.5 16.8 16.9 14.0 15.6 14.3 12.0 10.0 8.0 6.0 4.0 2.0 - FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 ------ACTUALS ------
Average Daily Boardings 60,000
50,000 50,009 47,069 40,000 43,418 38,839 39,892 30,000 35,534 30,558 27,631 20,000 24,995
10,000
0 Weekday Saturday Sunday/Holiday
FY15 FY16 FY17
Valleymetro.org Summary Overview 38 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
OPERATING FORECAST FISCAL YEAR 2019 – FISCAL YEAR 2023
Valleymetro.org Operating Forecast 39 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
OPERATING OVERVIEW The total operating budget forecast for the five year period of FY19-FY23 is $373.6M.
Five-Year Operating Forecast $90 $80 $82.3 $79.5 $70 $72.9 $68.7 $70.3 $60 $50
MILLIONS $40 $30 $20 $10 $0 FY19 FY20 FY21 FY22 FY23
FIVE-YEAR OPERATING ASSUMPTIONS The following assumption were used for the five-year forecast.
1.9-mile Gilbert Road Extension opens revenue service in May 2019
50th Street Station opens revenue service in May 2019
3.0-mile Tempe Streetcar opens revenue service in March 2021
FY19 FY20 FY21 FY22 FY23 Total Operating ($,000)
Sources of Funds Advertising $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 5,500 Fares 14,343 14,627 14,731 14,890 14,945 73,536 Federal Funds 2,682 1,352 1,367 1,379 1,393 8,173 MAG Funds 500 500 500 500 500 2,500 Member City Contributions 38,177 40,376 43,579 51,416 53,832 227,380 Public Transportation Funds 11,382 11,813 11,138 9,681 9,983 53,998 Regional Area Road Funds 500 500 500 500 500 2,500
Total Sources of Funds 68,684 70,268 72,915 79,466 82,253 373,586
Uses of Funds Rail Operations & Maintenance 52,041 55,149 58,937 66,890 69,318 302,335 Future Project Development 14,909 13,333 12,138 10,681 10,983 62,044 Agency Operating 1,734 1,786 1,840 1,895 1,952 9,207
Total Uses of Funds $ 68,684 $ 70,268 $ 72,915 $ 79,466 $ 82,253 $ 373,586
Valleymetro.org Operating Forecast 40 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
RAIL OPERATIONS & MAINTENANCE The Rail Operations & Maintenance costs are projected based on current cost history with a general inflation escalation factor of 3.0%. Anticipated structural changes to staffing, contract, and materials expenses are forecasted to meet customer demand and maintain the system in a state of good repair.
The projected sources and uses of funds in connection with rail operations and maintenance over the next five years are summarized as follows: SOURCES AND USES OF FUNDS FY19 FY20 FY21 FY22 FY23 Total Rail Operations & Maintenance ($,000)
Sources of Funds Advertising $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 5,500 Fares 14,343 14,627 14,731 14,890 14,945 73,536 Federal Funds 1,339 1,352 1,367 1,379 1,393 6,830 Member City Contributions 35,259 38,070 41,739 49,521 51,880 216,469
Total Sources of Funds 52,041 55,149 58,937 66,890 69,318 302,335
Uses of Funds Rail Operations 21,864 23,237 25,321 29,244 30,434 130,100 Rail Vehicle Maintenance 8,872 9,114 9,508 11,526 11,981 51,001 Maintenance of Way 12,609 13,535 14,293 15,446 15,909 71,792 Administrative Support 8,696 9,263 9,815 10,674 10,994 49,442
Total Uses of Funds $ 52,041 $ 55,149 $ 58,937 $ 66,890 $ 69,318 $ 302,335
BY MODE
FY19 * FY20 FY21 ** FY22 FY23 Total Operations ($,000)
Mode Rail $ 52,041 $ 55,149 $ 56,634 $ 59,468 $ 61,360 $ 284,652 Streetcar - - 2,303 7,422 7,958 17,683
Total Operations $ 52,041 $ 55,149 $ 58,937 $ 66,890 $ 69,318 $ 302,335
* Gilbert Rd for 2 months operating ** Tempe Streetcar for 4 months operating
Valleymetro.org Operating Forecast 41 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
FUTURE PROJECT DEVELOPMENT Future project development, regional wide and specific light rail corridor project development activities are included in the operating budget. Once a project alignment has been approved by local and regional policy makers, and federal environmental approvals are secured the project costs are recorded in the capital program.
Future project development consists of the following subcategories of System Planning and Corridor Planning activities:
Light rail/HCT system planning.
Alternatives analysis, environmental analysis, and conceptual engineering for future light rail/HCT corridors.
Developing and updating Light Rail Transit (LRT) design criteria, standards and specification
Working with the Maricopa Association of Governments (MAG) and the RPTA to participate in their regional transit planning studies and to update regional project programming documents.
Support of Transit Oriented Development initiatives by Member Cities.
Development of a comprehensive Geographic Information System (GIS) for the agency.
The projected sources and uses of funds in connection with Capital Project Development over the next five years are summarized as follows: SOURCES AND USES OF FUNDS
FY19 FY20 FY21 FY22 FY23 Total Future Project Development ($,000)
Sources of Funds Federal Funds $ 1,343 $ - $ - $ - $ - $ 1,343 MAG Funds 500 500 500 500 500 2,500 Member City Contributions 1,184 520 - - - 1,704 Public Transportation Funds 11,382 11,813 11,138 9,681 9,983 53,998 Regional Area Road Funds 500 500 500 500 500 2,500
Total Sources of Funds 14,909 13,333 12,138 10,681 10,983 62,044
Uses of Funds Capitol/I-10 West Phase I 1,409 - - - - 1,409 Capitol/I-10 West Phase II - 2,348 2,117 617 617 5,699 West Phoenix Transit Corridor Study 2,836 978 250 - - 4,064 Northeast Phoenix Transit Corridor Study 116 - - - - 116 I-10/I-17 Bus Ramp Design 270 - - - - 270 Downtown Chandler Alternatives Analysis 293 114 - - - 407 Fiesta District Alternatives Analysis 407 150 - - - 557 16th Street Station Feasibility Study 61 6 - - - 67 East Valley Streetcar System Study 308 250 - - - 558 Systems Planning & Project Development 7,687 7,918 8,155 8,400 8,652 40,811 Capital Project Development Administration 1,523 1,569 1,616 1,665 1,714 8,087
Total Uses of Funds $ 14,909 $ 13,333 $ 12,138 $ 10,681 $ 10,983 $ 62,044
Valleymetro.org Operating Forecast 42 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
AGENCY OPERATING Agency Operating costs include those costs not directly allocable to capital projects or to passenger operations. Included are costs of annual audit, federal and state legislative representation, and memberships to transportation related organizations.
The projected sources and uses of funds in connection with agency operating over the next five years are summarized as follows: SOURCES AND USES OF FUNDS FY19 FY20 FY21 FY22 FY23 Total Agency Operating ($,000)
Sources of Funds Member City Contributions $ 1,734 $ 1,786 $ 1,840 $ 1,895 $ 1,952 $ 9,207
Total Sources of Funds 1,734 1,786 1,840 1,895 1,952 9,207
Uses of Funds Administrative Support 1,734 1,786 1,840 1,895 1,952 9,207
Total Uses of Funds $ 1,734 $ 1,786 $ 1,840 $ 1,895 $ 1,952 $ 9,207
Valleymetro.org Operating Forecast 43 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
CAPITAL PROGRAM FISCAL YEAR 2019 – FISCAL YEAR 2023
Valleymetro.org Capital Program 44 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
CAPITAL OVERVIEW The total capital budget forecast for the five year period of FY19-FY23 is $1.9B.
The Five-Year Capital Program is a forecast of the capital projects managed by VMR. Costs and revenues are reported on a modified accrual basis. Actual cash flow impacts may lag pending receipt of contractor billings and receipt of federal funding.
VMR currently has a number of transit projects in various phases of planning, design, or construction. The overall uses of funds associated with these projects and activities are projected to be $1.9 billion through the five-year planning horizon, excluding finance charges. These sources and uses of funds are summarized as follows:
FY19 FY20 FY21 FY22 FY23 Total Capital ($,000)
Sources of Funds Federal Funds $ 164,286 $ 213,002 $ 168,689 $ 210,006 $ 206,808 $ 962,791 Member City Contributions 33,657 143,951 154,073 245,649 135,122 712,451 Public Transportation Funds 18,515 67,203 51,093 53,739 46,988 237,538 TPAN 23,000 - - - - 23,000
Total Sources of Funds $ 239,458 $ 424,156 $ 373,854 $ 509,393 $ 388,918 $ 1,935,779
Uses of Funds Gilbert Road Extension $ 65,901 $ 2,455 $ 1,459 $ 2,493 $ - $ 72,308 50th Street Station 8,779 - - - - 8,779 Tempe Streetcar 48,071 75,865 16,152 2,212 - 142,300 South Central 62,353 192,598 166,601 260,054 222,783 904,389 Northwest Phase II 21,737 73,679 82,687 65,999 43,121 287,223 OMC Expansion 7,114 25,993 6,973 - - 40,080 Capitol I-10 West Phase I - 44,091 61,293 97,462 38,974 241,820 West Phoenix - - 29,034 72,839 82,700 184,573 Central Mesa Extension 234 - - - - 234 Systemwide Improvements 25,269 9,475 9,655 8,334 1,340 54,073
Total Uses of Funds $ 239,458 $ 424,156 $ 373,854 $ 509,393 $ 388,918 $ 1,935,779
Five-Year Capital Forecast $600
$500 $509.4
$400 $424.2 $373.9 $388.9
$300 MILLIONS
$200 $239.5
$100
$0 FY19 FY20 FY21 FY22 FY23
Valleymetro.org Capital Program 45 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
Capital projects included in the five year program include:
Gilbert Road Extension: 1.9-mile alignment extending from terminus of Central Mesa Extension eastbound to Gilbert Road.
50th Street Station: station will enhance mobility options by serving a regional facility for persons with disabilities and other developments in the area.
Tempe Streetcar: 3.0-mile alignment extending southward along Mill Avenue in downtown Tempe from Rio Salado to Southern.
South Central: 5.5-mile southern extension of the existing Valley Metro light rail line along Central and 1st Avenues in central Phoenix.
Northwest Phase II: a 1.5-mile extension which will extend west on Dunlap Ave., north on 25th Ave. and across I-17 near Mountain View Rd. with a terminus on the west side of the freeway near Metrocenter Mall.
OMC Expansion: the expansion is necessary to maintain the streetcar fleet and expanding rail operations.
Capitol / I-10 West Phase I: 1.5-mile alignment from Phoenix City Hall westward to the vicinity of the State Capitol complex.
West Phoenix: a 3.0-mile extension connecting the light rail system at 19th Avenue and Camelback Road into West Phoenix near 43rd Avenue and Camelback Road.
Central Mesa Extension: continuation of the train signal control system upgrade known as SCADA project.
Systemwide Improvements: Includes eight additional light rail vehicles, fare technology improvements, system component overhauls to maintain a state of good repair, and small capital improvement elements which benefit the entire LRT system.
Five-Year Capital Sources of Funds
Member City Contributions Federal Funds $712.4 $962.8 37% 50%
Public Transportation TPAN Funds $23.0 $237.5 1% 12%
Valleymetro.org Capital Program 46 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
HIGH CAPACITY TRANSIT PROJECTS The Regional Transportation Plan (RTP), adopted by the Maricopa Association of Governments (MAG) and financed under the one-half cent sales tax extension, identifies 66 miles of major high capacity/ LRT corridors to be implemented by 2034.
Currently the 1.9-mile Gilbert Road Extension to serve east Mesa is under construction. The 3.0-mile Tempe Streetcar project is completing final design.
City of Phoenix voters approved Proposition 104, a 35-year transportation plan that would expedite several miles of light rail/high capacity transit and add additional corridors to the regional high capacity transit system. Under the plan additional service areas are identified; 5.5-miles into south Phoenix, 3.0-miles west into West Phoenix, 1.5-mile Northwest extension (phase II), 1.5-mile Capitol/I-10 West extension (phase I), an additional 9.5-miles Capitol/I-10 West extension (phase II) and 12.0-miles into northeast Phoenix. Valley Metro is the agency charged with planning, designing, building and operating the LRT/HCT system in the area.
The timing of the projects in the program is depicted on the following schedule shown below:
Funding for future projects has two phases
1) Planning Budget Phase: Alternative Analysis, preliminary engineering (up to 30% design) and the draft environmental document are funded from Member City contributions, and PTF.
2) Capital Budget Phase: After environmental clearance and completion of 30% design, costs are included in the capital budget and funded by Federal, regional, and local sources.
Valleymetro.org Capital Program 47 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
GILBERT ROAD EXTENSION
The Gilbert Road Extension will improve mobility and provide additional capacity in the Main Street corridor in Mesa. In addition, the project will connect the corridor with major activity and employment centers located east and west of the project corridor, such as Downtown Phoenix, Downtown Tempe, Sky Harbor International Airport and Arizona State University. The project will also enhance connectivity to the local bus services (with in- street mixed traffic operations) that currently operates as a feeder to the end-of-line Mesa Drive LRT station in Mesa and serves East Mesa including Superstition Springs Mall.
Design for the Gilbert Road Extension began in FY14, with construction commencing in 2016. Passenger operations is scheduled to begin in May 2019. SOURCES AND USES OF FUNDS The total capital cost of the Gilbert Road Extension project is budgeted to be approximately $186.3 million, excluding finance costs.
Pre-FY19 FY19 FY20 FY21 FY22 FY23 Post-FY23 Total Gilbert Road Extension ($,000)
Sources of Funds Federal Funds $ 105,105 $ 39,952 $ 2,315 $ 1,376 $ 4,708 $ - $ 278 $ 153,734 Member City Contributions 8,553 2,949 140 83 285 - 17 12,027 TPAN - 23,000 - - - - - 23,000
Total Sources of Funds 113,658 65,901 2,455 1,459 4,993 - 295 188,761
Uses of Funds Project Costs 104,730 59,094 1,150 60 - - - 165,034 NPR Utilities Relocation 2,763 1,010 595 - - - - 4,368 Vehicle Procurement 6,165 5,797 710 1,399 2,493 - 295 16,859 Financing Costs - - - - 2,500 - - 2,500
Total Uses of Funds $ 113,658 $ 65,901 $ 2,455 $ 1,459 $ 4,993 $ - $ 295 $ 188,761
Finance costs are informational only.
Valleymetro.org Capital Program 48 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
50TH STREET STATION
The 50th Street Light Rail station will enhance mobility options by serving a regional facility for persons with disabilities and other developments in the area. The project is completely funded by City of Phoenix as part of the voter approved Proposition 104. The project is currently in construction phase and is expected to be complete in spring 2019.
SOURCES AND USES OF FUNDS The total capital cost of the 50th Street Station project is budgeted to be approximately $24.3 million.
Pre-FY19 FY19 FY20 FY21 FY22 FY23 Total 50th Street Station ($,000)
Sources of Funds Member City Contributions $ 14,249 $ 8,779 $ - $ - $ - $ - $ 23,028 Public Transportation Funds 1,300 - - - - - 1,300
Total Sources of Funds 15,549 8,779 - - - - 24,328
Uses of Funds Project Costs 14,249 8,779 - - - - 23,028 NPR Utilities Relocation 1,300 - - - - - 1,300
Total Uses of Funds $ 15,549 $ 8,779 $ - $ - $ - $ - $ 24,328
Valleymetro.org Capital Program 49 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
TEMPE STREETCAR
The Tempe Streetcar extension project is located on Rio Salado Parkway from the Marina Heights development west to Mill Avenue, downtown loop on Mill and Ash avenues and south to Apache Boulevard, then east to Dorsey lane. The Tempe Streetcar will run in a one-way loop between Rio Salado Parkway and University Drive, going north on Mill Avenue and south on Ash Avenue.
The Tempe Streetcar will operate weekday trains at approximately 10 minute intervals during peak hours and 15 to 20-minute intervals off-peak. Weekends do not require peak service trains and will operate at 15 to 30-minute headways. Service headways will be adjusted over time to accommodate growth and service patterns.
This project is part of the Regional Transportation Plan and funded by Proposition 400 regional sales tax, local funding, and federal grants. Project Development activities including final design, pre-construction activities and right-of-way (ROW) acquisition for the Tempe Streetcar project is anticipated to be completed by November 2018. Pending FTA Small Starts Grant Agreement execution in FY19, construction could be complete in FY21.
Valleymetro.org Capital Program 50 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
SOURCES AND USES OF FUNDS The total capital cost of the Tempe Streetcar project is budgeted to be approximately $194.5 million, excluding financing costs.
Pre-FY19 FY19 FY20 FY21 FY22 FY23 Total Tempe Streetcar ($,000)
Sources of Funds Federal Funds $ 11,163 $ 44,151 $ 31,170 $ 6,683 $ 832 $ - $ 93,999 Member City Contributions 1,143 500 6,500 6,500 - - 14,643 Public Transportation Funds 39,895 4,700 41,703 4,585 1,380 - 92,263
Total Sources of Funds 52,201 49,351 79,373 17,768 2,212 - 200,905
Uses of Funds Project Costs 37,636 36,250 51,403 14,624 2,212 - 142,125 NPR Utilities Relocation 6,258 9,833 1,250 - - - 17,341 Vehicle Procurement 8,306 1,988 23,212 1,528 - - 35,034 Financing Costs - 1,280 3,508 1,616 - - 6,404
Total Uses of Funds $ 52,201 $ 49,351 $ 79,373 $ 17,768 $ 2,212 $ - $ 200,905
Finance costs are informational only.
Valleymetro.org Capital Program 51 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
SOUTH CENTRAL
The South Central Light Rail Extension will consist of an approximately 5.5-mile-long southern extension of the existing Valley Metro light rail line along Central and 1st Avenues in central Phoenix. The extension tracks would connect to the existing light rail system at Central Avenue and Washington Street in the northbound direction and at 1st Avenue and Jefferson Street in the southbound direction.
The track would continue south along 1st and Central Avenues to Hadley Street, where the southbound track would follow the 1st Avenue one-way couplet curve to the east to rejoin Central Avenue. From Hadley Street to the extension’s southern terminus at Baseline Road, the tracks would operate bi-directionally along Central Avenue. The South Central Light Rail Extension Project is scheduled to begin operations in 2023.
Together with Capitol/I-10 West light rail extension, staff has continued to study options for the convergence of LRT corridors within downtown Phoenix. In conjunction with analysis for the South Central LRT Extension, a reconfiguration of the merging of the existing light rail system, the future Capitol / I-10 West LRT Extension, and South Central LRT Extension was recommended to create a downtown transit hub to enhance the connectivity for transit passengers along with other multimodal improvements.
The South Central Light Rail Extension project limits have been expanded to include the segment from 3rd Avenue to 1st Avenue, which was originally affiliated with the Capitol / I-10 West project. By expanding the South Central project limits, construction impacts in the downtown core area generally bounded between McKinley Street, 3rd Avenue, Jefferson Street, and 5th Street would occur in the same timeframe rather than spread out between the two light rail projects. Capital cost allocation for the Capitol/I-10 West (phase I) for those portions will be reallocated to South Central project.
The South Central Light Rail Extension will operate weekday trains at approximately 12 minute intervals during peak hours and 15 to 20-minute intervals off-peak. Weekends do not require peak service trains and will operate at 15 to 30-minute headways. Service headways will be adjusted over time to accommodate growth and service patterns.
Final design for the South Central LRT Extension began in FY18. FTA issued a Finding of No Significant Impact (FONSI) on January 6, 2017. An Environmental Evaluation (EE) documenting the additional improvements in downtown Phoenix is underway and is expected to be approved in FY18. Valley Metro will request entry to FTA New Starts engineering phase in FY18. Passenger operations are scheduled to begin in 2023.
Valleymetro.org Capital Program 52 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
SOUTH CENTRAL
SOUTH CENTRAL – DOWNTOWN PHOENIX IMPROVEMENTS
Valleymetro.org Capital Program 53 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
SOURCES AND USES OF FUNDS The total capital cost of the South Central project is budgeted to be approximately $952.1 million, excluding financing costs.
Pre-FY19 FY19 FY20 FY21 FY22 FY23 Post-FY23 Total South Central ($,000)
Sources of Funds Federal Funds $ - $ 61,188 $ 119,177 $ 101,922 $ 130,999 $ 130,523 $ 51,160 $ 594,969 Member City Contributions 36,293 1,884 71,894 44,645 108,666 71,782 (115,866) 219,298 Public Transportation Funds - 248 5,000 25,000 25,000 25,000 78,403 158,651
Total Sources of Funds 36,293 63,320 196,071 171,567 264,665 227,305 13,697 972,918
Uses of Funds Project Costs 32,414 53,466 143,318 128,045 239,158 209,487 8,431 814,319 NPR Utilities Relocation 600 1,612 16,503 1,914 - - - 20,629 Vehicle Procurement - - 27,019 26,254 20,896 13,296 2,970 90,435 OMC Expansion 3,279 7,275 5,758 10,388 - - - 26,700 Financing Costs - 967 3,473 4,966 4,611 4,522 2,296 20,835
Total Uses of Funds $ 36,293 $ 63,320 $ 196,071 $ 171,567 $ 264,665 $ 227,305 $ 13,697 $ 972,918
Finance costs are informational only.
Valleymetro.org Capital Program 54 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
NORTHWEST PHASE II
The Northwest extension will enhance mobility options for a largely transit-dependent community and provide connectivity with employment centers near the I-17 freeway. It will support nearly 10,000 family housing units and help up to 20,000 employees get to work. It will also bolster community revitalization.
In 2004, the Phoenix City Council approved the Northwest Light Rail Extension, which included 4.7 miles of additional light rail service, extending from the current end-of-line at 19th Ave. and Montebello Ave. to Mountain View Rd. and 25th Ave. In 2007, the route was divided into two phases. The 3.2-mile Phase I on 19th Ave. from Montebello Ave. to Dunlap Ave. began revenue operations in March 2016.
Now Phase II of the project will extend west on Dunlap Ave., north on 25th Ave. and across I-17 near Mountain View Rd. with a terminus on the west side of the freeway near Metrocenter Mall. The Phoenix City Council approved the I-17 crossing in 2014. Preliminary engineering and environmental assessment on the project is currently underway. Final design is expected to begin in spring 2018. Phase II is scheduled to open in 2023.
Valleymetro.org Capital Program 55 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
SOURCES AND USES OF FUNDS The total capital cost of the Northwest Phase II extension project is budgeted to be approximately $303.7 million, excluding financing costs.
Pre-FY19 FY19 FY20 FY21 FY22 FY23 Post-FY23 Total Northwest Phase II ($,000)
Sources of Funds Federal Funds $ - $ - $ 39,633 $ 32,226 $ 36,871 $ 42,066 $ 5,344 $ 156,140 Member City Contributions - 21,670 29,720 45,482 24,383 (4,780) 1,386 117,861 Public Transportation Funds - 1,709 7,289 7,716 7,548 8,590 12,055 44,907
Total Sources of Funds - 23,379 76,642 85,424 68,802 45,876 18,785 318,908
Uses of Funds Project Costs - 20,204 61,053 66,591 62,182 43,121 16,511 269,662 NPR Utilities Relocation - 1,533 3,626 3,721 3,817 - - 12,697 Vehicle Procurement - - 9,000 12,375 - - - 21,375 Financing Costs - 1,642 2,963 2,737 2,803 2,755 2,274 15,174
Total Uses of Funds $ - $ 23,379 $ 76,642 $ 85,424 $ 68,802 $ 45,876 $ 18,785 $ 318,908
Finance costs are informational only.
Valleymetro.org Capital Program 56 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
OPERATIONS & MAINTENANCE CENTER EXPANSION
Valley Metro plans to expand the existing Operations and Maintenance Center (OMC), located east of Phoenix Sky Harbor International Airport and southwest of the intersection of the Grand Canal and Loop 202. The OMC expansion would include modifications to the Maintenance of Equipment (MOE) building, storage tracks and cleaning platform.
The MOE building modifications would consist of an approximately 23,000-square-foot expansion to the east with improvements/modifications to the existing mezzanine, office space, inspection pits and cranes. Expansion of vehicle storage would include construction of seven new storage tracks (north and south of the existing storage tracks) to increase total storage capacity to 92 vehicles. Finally, two new tracks and a second cleaning platform would be constructed south of the existing cleaning platform.
The OMC expansion would occur within the existing facility boundaries; thus, no additional property would be required. A design-build contract will be awarded by end of FY18 with construction anticipated to begin in fall 2018. The project is expected to be completed by December 2020.
Valleymetro.org Capital Program 57 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
SOURCES AND USES OF FUNDS The total capital cost of the OMC Expansion project is budgeted to be approximately $66.8 million.
Note: South Central capital project budget includes $26.7M of OMC Expansion costs.
Pre-FY19 FY19 FY20 FY21 FY22 FY23 Total OMC Expansion ($,000)
Sources of Funds Federal Funds $ - $ 5,691 $ 20,794 $ 5,578 $ - $ - $ 32,064 Public Transportation Funds - 1,423 5,199 1,395 - - 8,016 South Central Extension - 7,275 9,037 10,388 - - 26,700
Total Sources of Funds - 14,389 35,030 17,361 - - 66,780
Uses of Funds Project Costs - 14,389 35,030 17,361 - - 66,780
Total Uses of Funds $ - $ 14,389 $ 35,030 $ 17,361 $ - $ - $ 66,780
Valleymetro.org Capital Program 58 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
CAPITOL / I-10 WEST PHASE I
The Capitol / I-10 West Extension will improve mobility and provide additional capacity in the I-10 corridor in West Phoenix. In addition, the project will connect the West Valley with major activity and employment centers located near Downtown Phoenix, such as State Capitol, Maricopa County and City of Phoenix Governmental Mall. The project will also enhance regional connectivity by connecting with the existing Valley Metro light rail.
In May 2012, the City of Phoenix Council adopted a locally preferred alternative (LPA), consisting of an 11.0- mile light rail transit project from the 79th Avenue Park-and-Ride (P&R) on I-10 to the existing light rail transit system in downtown Phoenix to be carried forward for environmental analysis. In July 2012, MAG Regional Council approved the recommendation for light rail as the preferred mode on the route shown on the map below. In June 2016, Valley Metro Rail Board recommended this project be built in two phases. Phase 1 would be from Downtown Phoenix to the State Capitol and be completed in 2023 and Phase 2 would extend out to 79th Avenue and be completed in 2030.
Subsequent to approval of the Capitol/I-10 West LPA, staff has continued to study options for the convergence of LRT corridors within downtown Phoenix. In conjunction with analysis for the South Central LRT Extension, a
reconfiguration of the merging of the existing light rail system, the future Capitol / I-10 West LRT Extension, and South Central LRT Extension was recommended to create a downtown transit hub to enhance the connectivity for transit passengers along with other multimodal improvements.
The approval of the downtown LRT transit hub prompted a re-examination of the original Capitol / I-10 West Phase I LPA. It was recognized that shifting the LRT alignment from Jefferson Street to Washington Street between the State Capitol Complex and 7th Avenue would better serve and enhance ridership within the Governmental Mall and the surrounding community.
This extension is part of the Regional Transportation Plan and funded by Proposition 400 regional sales tax and Capital Investment grant (Small Starts) that are included in the Transit Life Cycle Program (TLCP). In addition, the City of Phoenix passed an extension of their transportation tax (Proposition 104) that included
Valleymetro.org Capital Program 59 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET this extension. The Environmental Assessment phase in compliance with the National Environmental Policy Act is anticipated to be complete in late 2018. Concurrent with the environmental analysis, Valley Metro Rail will generate detailed engineering designs of the selected alignment and station layouts. SOURCES AND USES OF FUNDS The total capital cost of the Capitol/I-10 West Phase I project is budgeted to be approximately $260.3 million, excluding financing costs.
Pre-FY19 FY19 FY20 FY21 FY22 FY23 Post-FY23 Total Capitol/I-10 West Phase I ($,000)
Sources of Funds Federal Funds $ - $ - $ - $ - $ - $ - $ 100,000 $ 100,000 Member City Contributions - - 41,820 54,109 82,548 27,214 (91,932) 113,759 Public Transportation Funds - - 4,050 9,657 18,979 13,333 10,981 57,000
Total Sources of Funds - - 45,870 63,766 101,527 40,547 19,049 270,759
Uses of Funds Project Costs - - 39,954 50,664 73,970 33,102 16,568 214,258 NPR Utilities Relocation - - - 3,733 15,710 700 233 20,376 Vehicle Procurement - - 4,137 6,896 7,782 5,172 1,724 25,711 Financing Costs - - 1,779 2,473 4,065 1,573 524 10,414
Total Uses of Funds $ - $ - $ 45,870 $ 63,766 $ 101,527 $ 40,547 $ 19,049 $ 270,759
Finance costs are informational only.
Valleymetro.org Capital Program 60 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
WEST PHOENIX West Phoenix (formerly West Phoenix/Central Glendale) high capacity transit corridor is a 3.0-mile corridor connecting the existing 19th Ave LRT extension serving West Phoenix area along Camelback Road. Valley Metro initiated a transit corridor study in 2013 to identify high capacity transit options in partnership with the cities of Phoenix and Glendale.
After completing three levels of technical analysis and extensive public outreach, City of Glendale Council voted to halt planning efforts for the extension to downtown Glendale. As a result, staff is working with City of Phoenix to consider up to a 3.0-mile leading alternative connecting 19th Avenue and Camelback LRT station along Camelback Road. Additional technical analysis and community outreach will be conducted in FY19 with a proposed recommendation taken for city council action and Valley Metro Rail Board action in late 2018/early 2019. The 2019 TLCP will be updated to reflect the revised alignment following Board action. SOURCE AND USES OF FUNDS The total capital cost of the West Phoenix project is budgeted to be approximately $385.9 million.
Pre-FY19 FY19 FY20 FY21 FY22 FY23 Post-FY23 Total West Phoenix ($,000)
Sources of Funds Federal Funds $ - $ - $ - $ 18,582 $ 34,569 $ 35,520 $ 160,619 $ 249,290 Member City Contributions - - - 10,452 38,270 47,180 28,077 123,979 Public Transportation Funds ------12,588 12,588
Total Sources of Funds - - - 29,034 72,839 82,700 201,284 385,857
Uses of Funds Project Costs - - - 29,034 54,014 55,500 164,015 302,563 NPR Utilities Relocation - - - - 16,725 21,000 4,200 41,925 Vehicle Procurement - - - - 2,100 6,200 33,069 41,369
Total Uses of Funds $ - $ - $ - $ 29,034 $ 72,839 $ 82,700 $ 201,284 $ 385,857
Valleymetro.org Capital Program 61 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
CENTRAL MESA EXTENSION
The Central Mesa Extension remaining activity in FY19 is related to the train signal control system upgrade known as SCADA.
SOURCES AND USES OF FUNDS The total capital cost of the Central Mesa Extension project is budgeted to be approximately $198.2 million, excluding financing costs.
Pre-FY19 FY19 FY20 FY21 FY22 FY23 Total Central Mesa Extension ($,000)
Sources of Funds Federal Funds $ 125,817 $ 187 $ - $ - $ - $ - $ 126,004 Member City Contributions 7,568 - - - - - 7,568 Public Transportation Funds 70,602 115 - - - - 70,717
Total Sources of Funds 203,987 302 - - - - 204,289
Uses of Funds Project Costs 197,353 234 - - - - 197,587 NPR Utilities Relocation 602 - - - - - 602 Financing Costs 6,032 68 - - - - 6,100
Total Uses of Funds $ 203,987 $ 302 $ - $ - $ - $ - $ 204,289
Finance costs are informational only.
Valleymetro.org Capital Program 62 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
SYSTEMWIDE IMPROVEMENTS Systemwide Improvements are incorporated in the Regional Transportation Plan in order to provide funding for new system components as well as for the capital overhaul programs necessary to maintain the system in a state of good repair. During FY19 VMR perform LRV component overhauls, make improvements for station activities. During FY19 and continuing into FY22, progress payments will be made on the 8 light rail vehicles. Also major light rail vehicle components such as the pantographs, HVAC, gears, traction motors, couplers, and motor and center trucks will be scheduled for overhaul. SOURCES AND USES OF FUNDS The total capital cost of the Systemwide Improvements plan through Fiscal Year 2023 is budgeted to be approximately $54.1 million.
FY19 FY20 FY21 FY22 FY23 Total Systemwide Improvements ($,000)
Sources of Funds Federal Funds $ 14,807 $ 4,806 $ 6,259 $ 6,689 $ 960 $ 33,521 Member City Contributions Public Transportation Funds 10,462 4,669 3,396 1,645 380 20,552
Total Sources of Funds 25,269 9,475 9,655 8,334 1,340 54,073
Uses of Funds LRV Capital PM 3,687 3,721 2,876 2,817 1,200 14,301 Vehicle Procurement 15,458 3,072 5,108 5,377 - 29,015 All Other 6,124 2,682 1,671 140 140 10,757
Total Uses of Funds $ 25,269 $ 9,475 $ 9,655 $ 8,334 $ 1,340 $ 54,073
Valleymetro.org Capital Program 63 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET Other
Valleymetro.org 64 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
STAFFING
Valleymetro.org Staffing 65 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
ORGANIZATION CHART
The Chief Financial Officer, General Counsel, and Internal Audit Manager all report directly to the Board of Directors, but receive operational and strategic direction from the Chief Executive Officer.
Valleymetro.org Staffing 66 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
POSITIONS, PAY GRADES AND EFFORT FTE Effort Position Title Adopted Pay Range RPTA VMR Total
I $ 22,824 - $ 34,237 Cleaner 0.00 3.00 3.00
III $ 28,179 - $ 42,268 Clerk 0.10 3.90 4.00 Customer Service Representative 45.00 0.00 45.00 LRV Yard Operator 0.00 1.00 1.00 Transit Distribution and Signage Assistant 0.50 0.50 1.00
IV $ 31,310 - $ 46,965 Customer Service Training Lead 1.00 0.00 1.00 Lead Document Control Clerk 0.10 0.90 1.00 LRV Inspector 0.00 13.00 13.00 Materials Handler 0.00 1.00 1.00
V $ 34,441 - $ 51,661 Accounting Technician 3.15 0.85 4.00 Administrative Assistant II 5.90 10.10 16.00 Lead Customer Service Representative 6.00 0.00 6.00 LRV Lead Inspector/Cleaner 0.00 1.00 1.00
VI $ 37,884 - $ 56,827 Contracts Specialist 0.50 0.50 1.00 Project Assistant 0.20 0.80 1.00 Technician 2.00 18.00 20.00 Track Maintainer 0.00 8.00 8.00
VII $ 41,673 - $ 62,510 Accountant I 3.50 0.50 4.00 Administrative Assistant III 1.40 1.60 3.00 LRV Maintenance Technician II 0.00 13.00 13.00 Paralegal 0.50 0.50 1.00 Planner I 1.20 1.80 3.00 Program Representative 3.50 0.50 4.00 Signal and Communications Systems Maintainer 0.00 9.00 9.00 Specialist 1.60 2.40 4.00 Vehicle Parts Coordinator 0.00 1.00 1.00
VIII $ 45,841 - $ 68,762 Coordinator 3.10 2.90 6.00 Graphics Designer 2.10 0.90 3.00 Specialist 0.40 1.60 2.00 Technician 0.15 28.85 29.00
Valleymetro.org Staffing 67 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
FTE Effort Position Title Adopted Pay Range RPTA VMR Total
IX $ 50,425 - $ 75,637 Accountant II 3.50 1.50 5.00 Budget Analyst 1.00 1.00 2.00 Construction Inspector 0.00 2.00 2.00 Contracts Administrator 1.40 1.60 3.00 Coordinator 15.00 12.00 27.00 Customer Service Supervisor 4.00 0.00 4.00 Data Analyst 1.00 0.00 1.00 Human Resources Generalist 1.00 0.00 1.00 Management Analyst 1.00 0.00 1.00 Office and Business Services Administrator 0.50 0.50 1.00 Planner II 2.35 2.65 5.00 Senior Internal Auditor 0.50 0.50 1.00 Specialist 0.80 3.20 4.00 Web Developer 2.00 0.00 2.00
X $ 55,468 - $ 83,201 Administrator 1.95 5.05 7.00 Engineer 0.50 1.50 2.00 Lead 1.70 1.30 3.00 Program Control Specialist 0.00 2.00 2.00 Supervisor 3.00 6.00 9.00
XI $ 61,014 - $ 91,521 Administrator 4.15 2.85 7.00 Assistant Manager, Community Relations 0.00 1.00 1.00 Coordinator 0.00 2.00 2.00 Labor Compliance Officer 0.00 1.00 1.00 Maintenance Engineer 0.00 1.00 1.00 Manager 0.90 1.10 2.00 Planner III 0.30 0.70 1.00 Senior Management Analyst 0.65 1.35 2.00 Technical Trainer 0.00 3.00 3.00
XII $ 67,115 - $ 100,673 Architect / Urban Designer 0.00 1.00 1.00 Assistant Manager 0.00 2.00 2.00 Assistant Superintendent LRV Maintenance 0.00 2.00 2.00 Engineer 0.75 2.25 3.00 Manager 7.25 7.75 15.00 Senior Application Developer 0.40 0.60 1.00
XIII $ 73,827 - $ 110,740 Manager 4.00 4.00 8.00 Senior Project Engineer 0.05 0.95 1.00
Valleymetro.org Staffing 68 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
FTE Effort Position TitleAdopted Pay Range RPTA VMR Total
XIV $ 83,632 ‐ $ 125,448 Chief Maintenance Engineer 0.00 1.00 1.00 Controller 1.00 0.00 1.00 Engineer 0.30 2.70 3.00 Government Relations Officer 0.50 0.50 1.00 Manager 2.05 4.95 7.00 Info Tech Sys Specialist 0.40 0.60 1.00 Superintendent LRV Maintenance 0.00 1.00 1.00
XV $ 93,182 ‐ $ 139,773 Chief Procurement Officer 0.30 0.70 1.00 Manager 0.50 2.50 3.00 Program Manager 0.00 1.00 1.00
XVI $ 102,206 ‐ $ 153,310 Deputy Director, Planning 0.45 0.55 1.00 Director 1.50 1.50 3.00
XVII $ 114,880 ‐ $ 172,320 Chief Officer 1.25 1.75 3.00 Deputy Director, Corridor Development 0.25 0.75 1.00 Director, Capital and Service Development 0.20 0.80 1.00 Senior Project Manager 0.00 1.00 1.00
GC $ 119,591 ‐ $ 179,387 General Counsel 0.50 0.50 1.00
ED Salary Negotiated Chief Executive Officer 0.50 0.50 1.00
FY19 FTEs 151.25 224.75 376.00 FY18 FTEs 150.68 209.32 360.00 Change 0.57 15.43 16.00
Valleymetro.org Staffing 69 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
APPENDICES
Valleymetro.org Appendices 70 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
BUDGET DEVELOPMENT The adopted operating and capital budget has been prepared with the goal of delivering a fiscally prudent, balanced budget using carry forwards, reserves and bond proceeds. The budget was developed in compliance with Board of Directors’ (BOD) adopted budget, financial and TLCP policies.
VMR’s continuing goal is to provide the highest quality services to our member communities in the most cost effective manner. The VMR budget process is a key piece of the strategy to achieve these results in a coordinated manner and to make fiscally responsible decisions that will ultimately produce a premier transit system in Maricopa County.
VMR’s budget process serves two principal purposes. Within the Corporation, development of the budget provides a forum for joint planning of objectives and tasks, with managerial and board review of programs. It sets the expectations for performance in the coming year(s). For the Corporation’s Members and partner agencies, the budget reports on the status of projects and services, detailing the agency’s operational objectives, capital improvements, and funding plans.
The annual budget is prepared on a modified accrual basis and adopted by the BOD each fiscal year. The legal level of budgetary control is the total annual appropriated budget. With respect to Capital Budgets, project contingency accounting is used to control expenditures within available project funding limits. With respect to Operating Budgets, encumbrance accounting is not used and all appropriations lapse at the end of the year. Prior to final adoption, a proposed budget is presented to the BOD for review and public comment is received. Final adoption of the budget must be on or before June 30 of each year.
VMR also develops a Five-Year Capital Program and Operating Forecast as part of the annual budget process. The five-year budget focuses on the capital improvements that are planned to occur within the planning horizon, and includes:
projected costs of LRT capital expenses, projected amounts to be paid by each Member to VMR, projected amounts to be paid directly for LRT expenses by each Member (for example, for acquiring rights-of-way), and projected revenues to be received from federal funds or other funding sources.
The internal process is a collaborative and iterative one, with the agency’s senior management providing strategic direction and critical review, managers and project managers preparing resource proposals, and financial staff (Including the Financial Working Group) providing feedback and technical support for the process. A review by the Regional Transit Advisory Group and Rail Management Committee will precede drafting of the proposed budget. Once the proposed annual budget and five-year capital plan have been published, the VMR Board provides final review and adoption.
October 2017 March 2018 April 2018 June 2018
•Preliminary Operating •Operating and Capital •Operating and Capital •Operating and Capital Budgets to Member Budget presented to Budget presented for Budget presented for City Staff Financial Working information to action to Management Group and Regional Management Committees, Audit and Transit Advisory Group Committees, Audit and Finance Subcommittee, Finance and Boards Subcommittee, and Boards
Valleymetro.org Appendices 71 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
SERVICE METRICS Below is the service metrics for rail operations showing historical data from FY16 and FY17 as well as the forecast for FY18 and FY19.
FY16 Actual FY17 Actual FY18 Budget FY19 Budget Service Metrics
Rail Operations Total Revenue Miles 2,912,000 3,325,000 3,330,000 3,376,000 Total Annual Cost/Budget$ 35,080,000 $ 41,481,000 $ 47,943,000 $ 52,041,000 Cost per Mile$ 12.05 $ 12.48 $ 14.40 $ 15.42
Rail 3,500,000 $50.00 $45.00 3,325,000 3,330,000 3,376,000 3,000,000 $40.00 2,912,000 $35.00 2,500,000 $30.00 MILE
$25.00 MILES
2,000,000 $20.00 PER $15.00 1,500,000 $14.40 $15.42 $10.00 $12.48 $12.05 $5.00 1,000,000 $‐ FY16 FY17 FY18 FY19
Revenue Miles Cost per Mile
Valleymetro.org Appendices 72 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
STAFFING TRENDS Staffing needs are assessed each year based on the level of activities and fulfillment of work requirements for the coming year. The table below summaries staff positions by each agency for the last 3 fiscal years and the current budget year.
FY16 FY17 FY18 FY19 Staff Positions by Agency
Agency RPTA 129 131 150 151 VMR 183 179 210 225
Total 312 310 360 376 Change from prior year -2 50 16 FY16
Enhanced critical Information Technology needs Increased rail service with the addition of 6 miles of track, with the opening of the Central Mesa and Northwest Extensions Increased maintenance for state of good repair needs
FY17
Enhanced paratransit program for people with disabilities by implementing regional Dial-a-Ride; additional staff to oversee paratransit operations Enhanced strong fiscal controls by creating internal audit team Worked toward improving customer satisfaction by preliminary testing of the mobile ticketing solution Converted LRV cleaning staff to contractors
FY18
Increased number of projects o Expanding bus, paratransit and rail operations o Expanding technology o Construction of multiple rail projects simultaneously o Strategic initiatives Converted a number of consultant positions to staff, resulting in savings of $1.5 million annually
FY19
Increased number of active projects o Three active rail capital construction projects o Four projects in the design phase Increased rail service with the addition of the Gilbert Road Extension and 50th Street Station Increased fleet for new light rail vehicles and streetcar vehicles
Valleymetro.org Appendices 73 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
LONG TERM TRENDS The following chart shows personal services costs as a percentage of the overall annual operating and capital budgets for the previous 10 fiscal years. The long-term trend shows that the combined agencies staffing is consistently in the range of five to seven percent of the total budget.
Staff Costs as % of Agency Budget 12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0% FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
RPTA VMR Total
Staff Position by Agency 400 350 300 250 200
POSITIONS 150 100 50 0 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
RPTA VMR Total
Valleymetro.org Appendices 74 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
SERVICE AREA
Valleymetro.org Appendices 75 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
SERVICE MAP
Valleymetro.org Appendices 76 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
GLOSSARY OF TERMS AND ACRONYMS TERM / ACRONYM DEFINITION
5307 The Urbanized Area Formula Funding program (49 U.S.C. 5307) makes federal resources available to urbanized areas and to governors for transit capital and operating assistance in urbanized areas and for transportation-related planning.
5309 A reference to FTA New Starts Program, Title 49 U.S.C., Section 5309 providing funding for the design and construction of transit systems.
5337 The State of Good Repair Grants Program (49 U.S.C. 5337) provides capital assistance for maintenance, replacement, and rehabilitation projects of high- intensity fixed guideway and bus systems to help transit agencies maintain assets in a state of good repair.
5339 Section 5339 allows FTA to make grants and agreements, under criteria established by the Secretary, to States, authorities of the States, metropolitan planning organizations, and local governmental authorities to develop alternatives analyses as defined by section 5309(a)(1). Eligible study sponsors must be able to incorporate the results of this work into an ongoing alternatives analysis study or must commit to initiate an alternatives analysis study within 12 months of the grant approval.
ACI Alternate Concepts, Inc.
BOD Board of Directors
CMAQ Federal funding program intended for Congestion Mitigation and Air Quality improvement.
EE Environmental Evaluation
FHWA Federal Highway Administration
FONSI Finding of No Significant Impact
FTA Federal Transit Administration
FTE Full Time Equivalent
GIS Geographic Information System
HCT High Capacity Transit – includes heavy rail, Light Rail Transit, Bus Rapid Transit modes of urban transportation
LPA The Locally Preferred Alternative alignment for a transit route among a set of options which have been analyzed.
LRT Light Rail Transit
LRV Light Rail Vehicle
Valleymetro.org Appendices 77 VALLEY METRO RAIL FY19 OPERATING & CAPITAL BUDGET
TERM / ACRONYM DEFINITION
MAG Maricopa Association of Governments
Member Cities VMR equity members, currently Phoenix, Tempe, Mesa and Glendale
MOE Maintenance of Equipment
NPR Non-Prior Rights
OMC Operations and Maintenance Center
P&R Park-and-Ride
Proposition 400 Legislative initiative to create a Public Transportation Fund passed into Arizona law in November 2004 providing roadway and public transit improvements in accordance with the Regional Transportation Plan.
PTF Public Transportation Fund. See Proposition 400.
ROW Right-of-Way - real property required for the LRT alignment
RPTA Regional Public Transportation Authority the designated agency to receive and distribute public transit improvement funding under Proposition 400
RTP Regional Transportation Plan - for Maricopa County, a comprehensive, performance-based, multi-modal and coordinated regional plan providing a blueprint for future regional transportation investments.
SCADA Supervisory Control and Data Acquisition
T2050 Phoenix Transportation 2050
TAM Transit Asset Management
TLCP Transit Life Cycle Program
TOD Transit Oriented Development - real property development typically incorporating residential and commercial uses into the areas adjacent to a transit route.
TPAN Transportation Project Advancement Notes.
VMR Valley Metro Rail, Inc.
Valleymetro.org Appendices 78 101 North First Avenue | Suite 1400 | Phoenix, AZ 85003 | valleymetro.org