Boards of Directors

MEETINGS OF THE Boards of Directors

Joint Meeting of Valley Metro Valley Metro Valley Metro RPTA RPTA and Rail Valley Metro Rail

Date Thursday, November 10, 2016

Starting time 11:15 a.m.

Meetings to occur sequentially

Location Valley Metro Lake Powell Conference Room (10A) 101 N. 1st Avenue, 10th Floor Phoenix

If you require assistance accessing the meetings on the 10th floor, please go to the 13th floor or call 602-262-7433.

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 85003 • 602-262-7433

November 2, 2016

Board of Directors Thursday, November 10, 2016 Lake Powell Conference Room 101 N. 1st Avenue, 10th Floor 11:15 a.m.

Action Recommended

1. Public Comment on Agenda Action Items (blue card) 1. For information

The public will be provided with an opportunity at this time to address the Board on all action agenda items. Up to three minutes will be provided per speaker to address all agenda items unless the Chair allows more at his/her discretion. A total of 15 minutes for all speakers will be provided.

2. Minutes 2. For action

Minutes from the September 22, 2016 Board meeting are presented for approval.

3. Intergovernmental Agreements (IGAs) with the City of 3. For action Phoenix for Federal Transit Administration Pass-Through Grants

Scott Smith, Interim CEO, will request that the Board of Directors authorize the Interim CEO to execute the IGAs and change order with the City of Phoenix for the listed grants.

4. Regional ADA Paratransit Service Update 4. For information

Scott Smith, Interim CEO, will introduce Ron Brooks, Accessible Transit Services Manager, who will provide an update on Implementation of Regional ADA Paratransit Service.

5. Future Agenda Items Request and Report on Current 5. For information Events and discussion

Chair Williams will request future agenda items from members, and members may provide a report on current events.

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 85003 • 602-262-7433

6. Next Meeting 6. For information

The next meeting of the Board is scheduled for Thursday, December 10, 2016 at 11:15 a.m.

Qualified sign language interpreters are available with 72 hours notice. Materials in alternative formats (large print, audiocassette, or computer diskette) are available upon request. For further information, please call Valley Metro at 602-262-7433 or TTY at 602-251-2039. To attend this meeting via teleconference, contact the receptionist at 602-262-7433 for the dial-in-information. The supporting information for this agenda can be found on our web site at www.valleymetro.org.

DATE AGENDA ITEM 1 November 2, 2016

SUBJECT Public Comment on Agenda Action Items

PURPOSE The public will be provided with an opportunity at this time to address the Board on all action agenda items. Up to three minutes will be provided per speaker to address all agenda items unless the Chair allows more at his/her discretion. A total of 15 minutes for all speakers will be provided.

BACKGROUND/DISCUSSION/CONSIDERATION None

COST AND BUDGET None

COMMITTEE PROCESS None

RECOMMENDATION This item is presented for information only.

CONTACT Scott Smith Interim Chief Executive Officer 602-262-7433 [email protected]

ATTACHMENT None

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 85003 • 602-262-7433

DATE AGENDA ITEM 2 November 3, 2016 Minutes of the Valley Metro RPTA Board of Directors Thursday, September 22, 2016 12:15 p.m.

Meeting Participants Councilmember Thelda Williams, City of Phoenix, Chair Councilmember Suzanne Klapp, City of Scottsdale, Vice Chair Councilmember Lauren Tolmachoff, City of Glendale, Treasurer Councilmember Eric Orsborn, City of Buckeye Councilmember Brigette Peterson, Town of Gilbert Councilmember Sharolyn Hohman, City of Goodyear Supervisor Steve Gallardo, Maricopa County Vice Mayor Dennis Kavanaugh, City of Mesa Vice Mayor Jon Edwards, City of Peoria (phone) Councilmember Skip Hall, City of Surprise Mayor Mark Mitchell, City of Tempe Councilmember Kathie Farr, City of Tolleson

Members Not Present Councilmember Jim McDonald, City of Avondale Councilmember Kevin Hartke, City of Chandler Councilmember Jack Palladino, City of El Mirage Councilmember Rui Pereira, Town of Wickenburg

Chair Williams called the meeting to order at 1:16 p.m.

1. Items for Citizens Present

Ms. Ramirez said I'm from Mesa city from 644 West Main Street, Lot 1188. And I would like to share that I am a mother and I have six children and they depend on me. One of them has autism. And I'm very concerned and stressed about the situation that we're living and what's going to happen with my three children, because my community is being impacted and many times it has said that it's not due to the light rail, but it's due to the light rail that they're being affected.

We've been given until about May of 2017 to, as part of the eviction notice, to leave, but we're very concerned about the materials and property and every investment that we put into our homes and how is that going to impact us in the future to live. I’m also concerned about at the City of Mesa City Council they noted that there are no funds and if funds are only available for citizens and residents. And when I obtained the property they never asked me when I purchased it if it was a resident or a citizen. I contribute to the community, I pay my bills, I pay taxes, I pay rent, and the color of money applies to

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 85003 • 602-262-7433

everyone not individuals.

Ms. Triona said my name is Yolanda and I'm from the City of Mesa and I want to express also my concern about what's been shared. There is a document that references an analysis about how the impact of light rail would be upon residents of the community and it has been and it is affecting us as shown in the document.

And we understand that with the City of Mesa the owner of the property they're trying to redevelop the property, and we would like some assistance or be recognized monetarily to be able to move out, be relocated or transferred someplace else because of the issue that the property owner would like to sell.

We've been told to leave and we've been told that there are alternatives and we would like the alternatives to be provided to us so the people at the mobile park can leave. We would like resolution on the matter and someone to help us and address us, and thank you for your time and may God bless you.

Ms. Kerruth said good afternoon. My name is Ms. Kerruth and I come from Mesa Royale. I would like to talk on the same matter as my friends here are talking about that if you want the property, if you want to use it, please pay us and we'll leave.

It was noted that the train was going to improve the service in the area, which it has been and we're happy, because on the fixed route bus it used to take longer. Yes, it is an improvement, but it is impacting our lives.

We've gone to the Mesa City Council asking for assistance and help we haven't gotten any. We're looking for you all to help us out and to save our community where lots of children, lots of youth and folks live in the area, and we're looking for assistance to be able to move. We are all in the hands of God. You are in the hands of God. We trust in God and we're looking for your assistance and your support. As my friend was saying, we are up to date with all our bills, we pay our taxes, we pay everything, and we're looking just for your help, your assistance in helping us come out of this situation.

Dr. Hererra said good afternoon. Sylvia Hererra on behalf of the Mesa Royale residents. I'm here and I'm going to reference a memo that was issued in April 20, 2011. It was issued in regard to the Central Mesa Light Rail Extension. It's called the "Environmental Justice Technical Memo."

In it you have to issue those in regard to the impact on low-income communities and communities of various ethnicities. And so in the report it does specifically say that in that area, which the study area included Sycamore to Mesa Drive, and it says, "All along the route with two exceptions lie entirely and within and adjacent to these areas there's a high concentration of low income and/or minority populations."

Well, you know, we beg to differ on the minority because and, in fact, it's a majority in that vicinity. I'm here to talk to not only what the report says but what has happened since light rail was proposed and actually was initiated in the area. The report says "Economic redevelopment may have the effect of increasing property values which would have a positive benefit for those who currently own property in the corridor, but may possibly have a negative effect on those who rent and who may not be able to afford the higher rents that often accompany higher land values."

Well, what has happened is that these people not only the people of Mesa Royale but other trailer parks on Main Street are being relocated. The property owners are selling their properties for $2 million and yet the low-income community has no place to go. So there's no benefit in having the light rail there when you're displacing low-income communities.

I would ask that there be a follow-up study done on the impact of light rail along the corridor in Mesa. There's property -- the trailer parks that are along that area are being sold. And people are being dislocated and there's nowhere in Mesa where there's affordable housing.

So we need to come up with a plan for relocation and displacement of the community that involves a lot of children, a lot of families that have nowhere else to go. You're creating a homeless situation for a lot of Spanish-speaking residents of Mesa. Thank you.

Mr. Crowley said well, the legacy of Mr. Banta is something you, Thelda, and Ms. Tolmachoff are both aware of. You had transit facilities that were being constructed, and do they have a ticket vending machine in either one of them. No, they don't, because Mr. Banta, for some reason, feels that the bus part of the equation didn't need to have it or we have vendors out there that are doing stuff and getting the job done correctly, so I need you to change that the philosophy. I need you to put those vending machines in Phoenix, Glendale, Metrocenter, Sunny Slope, Pastor, at all of the, you know, make it more accessible.

Now I got blessed by the City of Phoenix this last month because their Citizens Transportation Commission passed a resolution on to the City Council saying get rid of the two dollars extra you charge on the bus. That will be coming before y'all. We need to get rid of that two-dollar fine that I believe that staff believes that the reason we should have that is so that people don't dottle and use the bus as a way of paying their fare. I don't go with that. It's not right.

And then also when the half a million dollars will be brought to your attention that is brought in by that two dollar extra fee, remember, that it's minority and the poor that are basically on the bus and you need to take extra money from them. Just a thought.

The proposed changes that you have coming up in October, not the April ones is the book going to reflect everything? Are you going to put a new bus book out next month? I would have asked at the meeting and say is it here, but you canceled that.

So are we just doing a supplement for next month. And then in April are you going to be doing more of just the same because with the proposed changes, you're not doing what we told you to do in Prop 400; otherwise, Surprise and Goodyear and Avondale and Tolleson and Scottsdale and Paradise Valley and Glendale and Chandler, all of y'all would have more bus routes, especially the East Valley of Mesa, Chandler, et cetera. But then we would have all of the north south going on the west side.

And as to expanding your Safe Place thing to the buses, it says in there that you're going to be talking to the union about it. This has been going on for a couple months. Well, I called the union and you haven't done any outreach. And I won't tell you what they had to say.

2. Minutes

Chair Williams said the next item on the agenda are the minutes from the August 18, 2016 Board meeting.

Public Comment Mr. Crowley said yes, since you forced me to have to speak on action items back then on a specific, I said that according to the feds when you do that, you've got to still show at that action item what the public inputted. You don't just put it at the front and say, hey, they spoke on all of this, which is fine and dandy the way you did it. But it goes specific to each one of the items. I did list each one of the items as I expressed it. And it doesn't show on each one of those items the public said this.

IT WAS MOVED BY COUNCILMEMBER KLAPP, SECONDED BY COUNCILMEMBER ORSBORN AND UNANIMOUSLY CARRIED TO APPROVE THE AUGUST 18, 2016 BOARD MEETING.

3. Proposed April 2017 Transit Service Changes

Mr. Smith said Madam Chair, I'd like to introduce Jorge Luna, our Service Planning Manager, who will provide a quick update on proposed April 2017. I know that sounds early, but we're already working on 2017 changes. Jorge.

Mr. Luna said good afternoon chairs, members of the boards, I'm here to present on the Proposed April 2017 Transit Service Changes and community outreach plan.

As noted on the screen the proposed April 2017 service changes have been coordinated with your staff and evaluated through several processes. Once the outreach period and additional analysis has been concluded, we will come back before 4

you in January of next year asking for approval for contract change modifications and IGA modifications for Valley Metro funded and/or operated service.

Please note that services operated by the City of Phoenix and/or funded by the City of Phoenix will follow the City of Phoenix City Council approval process.

Proposed changes, the map on the screen here provides a general summary of the proposed changes. Please note that at the Transit Management Committee meeting, at the last meeting, I noted that several items had been requested at the last minute to be added to the proposed changes list. Those items have been added to the presentation in the memo with the exception of 514 which, unfortunately, it was able to get on to the presentation the map and the memo, but not the narrative, so I apologize for any confusion, but everything is included in the package.

As for the proposed changes shown on the screen, they generally include additional hours of service and some route adjustments. And the following slides will show additional information on those items.

So proposed for April 2017 are additional hours of service. This will impact about forty- two routes within the City of Phoenix. And this is an effort or this is an outcome of Phoenix T2050 plan that was approved recently. And in essence, it proposes to have service run later at night on Friday, Saturday, and Sunday. Friday and Saturday, in essence, the bus service would match light rail until 2:00 a.m. and Sunday the same traveling until 11:00 p.m. on Sundays.

Regarding end-of-line adjustments, there are several of these. I noted on the screen. These are done for reasons such as funding and adequate vehicle turnaround for 40-foot or 60-foot vehicle utilizing new facilities reaching nearby ridership markets.

In addition, there are proposed route modifications as noted on the screen. These modifications are a bit larger, larger extensions of routes trying to reach major destinations such as a mall or a park-and-ride in the case of Route 39 or ASU West and light rail in the case of Route 122 Cactus Road.

In addition, there's several proposed -- there's one proposed frequency improvement for Route 50 in Scottsdale. In essence it's to match Route 50, the frequency and hours of service of their neighbor to the west which would be Phoenix.

Lastly, there would be some schedule adjustments to ensure that the routes have additional or adequate travel time for themselves.

So as noted on the screen, we have additional work to do. Our community outreach plan will share the proposed changes and provide several avenues for the public to comment. We have a Webinar, a public hearing, open house, targeted outreach.

And we'll come back before you in January of 2017 to show a summary of that outreach as well as any proposed recommendations for the service changes. Again, this item is for information only. This concludes my presentation and I'll be happy to answer any questions.

Chair Williams said does anyone have questions? No. We're always excited to see this type of progress. It's very exciting to see the routes extended and frequency increased. So thank you for all your hard work.

4. Safe Place Expansion to Regional Bus System

Mr. Smith said Madam Chair, I'd like to introduce Hillary Foose, our Director of Communication and Marketing, who will provide information on the expansion of the Safe Place program to our regional bus system. Hillary.

Ms. Foose said thank you, Scott. Madam Chair, Members of the Board, thank you once again. Here to talk to you give you a little information update on Safe Place bus expansion.

You may know we extended Safe Place to our Valley Metro Rail stations a couple years ago. Our plan had been all along to make sure that we could expand it to our regional bus system and the reasons before you are why. And I'll talk a little bit more about Safe Place in just a moment.

But we do want to extend the Safe Place program to our more than 900 buses in the Valley ensuring that we still provide a high-quality service and a reliable service so without impacting those. Safe Place allows us to further extend our commitment to the community particularly young people in this community who are in distress, and obviously helps with making sure we continue to focus on safety of our passengers and providing excellent customer service, which is particularly relevant with, as you just heard from Jorge, the expansion of some of our bus routes into the later evening hours. This program even becomes more critical to make sure our youth are taken care of.

So a little bit about Safe Place, it provides help and resources to young people generally ages twelve to seventeen. It is a national program. It's in more than 1500 communities across the country. It is actively a part of more than sixty transit agencies across the country. So transit plays a critical role in making sure teens can get connected to resources and that's what we're looking to provide here with this expansion.

Our local partner here is Tumbleweed Center for Youth Development. And Ken Lynch is in the audience. Thank you, Ken. He's been a great partner as we've extended it to our rail system and certainly as we think about extending it to our full bus fleet Valleywide.

So in metro Phoenix today, you probably commonly see these big yellow Safe Place 6

signs at QuikTrips. That's where I used to see them all the time. Quik Trips across the Valley are Safe Place locations. Obviously our thirty-five Valley Metro Rail stations. But also many of your public facilities possibly your libraries, your city halls, fire departments, et cetera are also Safe Places for teens in need.

How it will work, it will work a little different than it does on Valley Metro Rail. As you can imagine, we have an operator on our buses who will assist. On Valley Metro Rail, they interact with our emergency call box at the stations that interacts with our security up in our control center. This will obviously interact with our bus operators.

And so a young person who is in need of resources, usually at the end of their rope just needing some assistance will board the bus, interact with the operator. The operator will contact dispatch. Dispatch can do a number of different things based on where the bus is at and what's needed. They could send a supervisor, but ultimately work to intercept Tumbleweed with the youth in need.

Tumbleweed has thirteen locations across the Valley, so they're very accessible countywide. They are also supplemented by Discount Cab to make sure that we are responsive to connecting with that teen in a reasonable time.

We're actively working on this with our operations teams to make sure that we're developing a standard operating procedure and training, so we're working obviously with our team at Valley Metro, but also our counterparts at City of Phoenix and our service providers to make sure that they're on board and weigh in on the process. And naturally we will be working with the union that is part of the education and the buy-in that we do want to create.

We are currently drafting and almost done actually with an operating procedure that's getting bought in by all parties. The operating procedure was based on pure research. As I mentioned, there's more than 60 transit agencies across the country who have fine-tuned this model. So our standard operating procedure works for our environment but also based on what our peers are doing across the country.

Training will be critical here to make sure that our front-line staff is educated on what it means to help a teen in need. But generally there's been good buy-in by our operations and safety and security teams that this program has a lot of merit.

Just to make sure, this question came up from your staffs, and certainly something that we've been concerned about. Again, we don't want to create a program that impacts our level of quality service and reliability and safety. And so there was a lot of questions about call volumes, kind of what to expect.

And the call volumes, at least based on our peers and what we've experienced in Valley Metro Rail, is a low number of calls, very manageable number. It's really teens who are at their very wit's end. They just need some help connecting with their families or 7

connecting with resources.

So as you can see before you, last year on Valley Metro Rail we had six total calls. Tucson, Sun Tran in Tucson offers the program. They got zero last year. Obviously they've had some in the past, but zero in the last calendar year. And on average across the country it's about eight calls. So across the year it's very reasonable, and again we're helping some teens who are in some critical need.

So just to give you where we're at, give you an update on just where we're at. Again, we're nearly done with the operating procedure, getting that buy-in that we needed. We'll immediately start with some training with our front-line staff to make sure they're aware and informed and become educated on the program. The training will become incorporated into annual, our annual training programs with our front-line staff, so even new employees will understand what Safe Place is and how to work with it.

There will be a small amount of public education. We're putting some decals in all of our buses, some basic marketing materials, but a lot of the outreach really happens with Tumbleweed. They really connect with the youth in our community to make sure that they're aware of Safe Place and the programs available to them.

And our hope is to once we get through the operating procedure and critical training that we launch this fall, maybe in the November time frame, but we want to make sure we're ready and all of our parties are ready.

So I just wanted to end on a happy note. This is one of our success stories. This is Jessica. She connected with Tumbleweed at one of our Valley Metro Rail stations. These are the kinds of young men and women that we will be assisting and obviously putting nine hundred buses as Safe Places just will expand our level of help to important young people in our community. This is for information. I'm happy to answer any questions for you.

Councilmember Hall said I think this is just an outstanding program, Hillary. And I know Tumbleweed. I know Ken. And I got a lot of respect for that organization.

We're doing something in Surprise in a partnership with them. And they're a great organization and I think it's great we're doing this.

Ms. Foose said yes, we agree. Thank you.

Supervisor Gallardo this is a great program. I love it. I think anything we can do to help our young people in need. And I have worked with Tumbleweed in the past. I'm very familiar with the organization.

And I think my concerns are the marketing side of it. And what are we doing to allow our young people to know that if they are in trouble, here's an option. Here's where you 8

can go. Because I think even talking to Tumbleweed, one of their challenges is identifying the youth that are in need. I mean, that's their challenge as well.

So looking at how we roll it out and educate the public, I think is, particularly young people, is very important. Have we thought about working with perhaps the school district, whether it be Mesa Unified or Phoenix Union, some of the larger metropolitan schools, at least start identifying certain areas in which we could partner up with the school districts to promote these types of -- this particular type of program?

I think folks know, at least talking to my nieces and nephews, they know that QT has a spot, that they can go to QT, if they're in need of help. But rolling it out, I'd really like to put some emphasis in just the marketing and letting people know that here's another option.

Because if you look, you go in the mornings or even in the afternoons, it's our young people that are utilizing our transportation to go from home to school and school to home or home to work or wherever. And if we could really, and I don't know, you all are expert at this in terms of marketing it, but really promote it to our young people, let them know, you know, this is an option. If you need help, this is where you can go. So I guess it's more of a comment.

Ms. Foose said Madam Chair, Supervisor Gallardo, we appreciate you saying so. I know Tumbleweed does a lot of work to connect with schools and children of this age. But -- and I think you've provided us with some good ideas.

We do a lot of already existing work with schools and school district as part of our transit education program. So there is a lot of opportunities to weave in this message to make sure we're sharing it widely. So thank you for the ideas, and we will certainly incorporate those into our plan for this fall and ongoing.

5. Future Agenda Items Request and Report on Current Events

Chair Williams said does anyone have anything they would like to see on a future agenda? Or do you have any comments on current events?

Councilmember Hall said Madam Chair, yes, if I could. One of the things that I would like to see, Scott, is with the Dial-A-Ride, you know, the service issue we had that you finally got wrestled down. I would like to see a presentation on exactly how that complaint procedure works through the system at what point it gets elevated to your office or to somebody. And then what do we do to -- what are the methods -- what are the best methods for our customers to voice a complaint? Is it through a Website? Is it calling the city? Is it calling -- you know, all those kind of things I'd like to have addressed so that we know how that complaint procedure works and how we can improve on it.

Mr. Smith said Madam Chair, Councilmember Hall, we'd love to do that. And if you don't mind, I'd like to expand that to our bus providers and our light rail so that we have a complete picture.

Dial-A-Ride is a little different and we're dealing with some of the issues with Dial-A-Ride. There's no doubt we have some challenges there, but the process basically should be the same.

And we will be more than happy to come back and discuss with the Board that process for all of our different modes of transportation and talk about realistically our challenges and what we're working on to address those challenges.

So we'll get those either probably November or December. Probably December.

Chair Williams said anyone else? Hearing none, we will note next meeting is not October. It is November. And it has a new start time at 11:15.

Mr. Smith said Madam Chair, it's also a week earlier. It's November 10. Instead of the -- it's the second week instead of the third week.

With no further discussion the meeting adjourned at 1:50 p.m.

DATE AGENDA ITEM 3 November 2, 2016

SUBJECT Intergovernmental Agreements (IGAs) with the City of Phoenix for Federal Transit Administration Pass-Through Grants

PURPOSE To request authorization for the Interim Chief Executive Officer (CEO) to execute IGAs with the City of Phoenix to allow Valley Metro to be reimbursed for eligible activities.

BACKGROUND/DISCUSSION/CONSIDERATION Valley Metro is being provided federal funds through the Federal Transit Administration (FTA) from five grant sources. The table below summarizes the funding available:

Grant Source Federal Local Total Share Share AZ-2016-006 5337 – SOGR HiBus $1,467,452 $258,962 $1,726,414 AZ-2016-010 5307 – Formula $9,937,739 $2,108,590 $12,046,329 AZ-2016-011 5339 – Bus and Bus $676,060 $128,515 $804,575 Facilities AZ-2016-016 5307 – Formula (Avn- $1,626,551 $730,551 $2,357,102 Gdy UZA) AZ-2016-017 5310 – Enhanced $355,248 $302,748 $657,996 Mobility AZ-2016-024 STP $2,594,763 $13,237 $2,608,000 Total $16,657,813 $3,542,603 $20,200,416

• Funds from Section 5337, State of Good Repair Hi Capacity Bus Program, are awarded for replacement fleet. • Funds from the Section 5307 Urbanized Area Formula Program are awarded for preventive maintenance, design costs for a transit center in Peoria, and fleet expansion and replacement. • Funds from the Section 5339, Bus and Bus Facilities Program, are awarded for replacement fleet and design costs for a transit center in Peoria. • Funds from the Section 5307 Urbanized Area Formula Program for the Avondale-Goodyear Urbanized Area are awarded for operating support and replacement fleet. • Funds from Section 5310, Enhanced Mobility for Seniors and Individuals with Disabilities Program awarded for operating support for the East Valley Ride Choice, Northwest Valley Dial-a-Ride and travel training.

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• Funds from the Surface Transportation Program flexed from the Federal Highways Administration are awarded for replacement and expansion fleet for the vanpool program.

The City of Phoenix is the designated recipient for all FTA grant funds for the region. Valley Metro undertakes projects approved for FTA grant funding, then submits requests to Phoenix for reimbursement of actual expenses incurred. Phoenix then executes a drawdown of funds from FTA to pass-through the reimbursement to Valley Metro.

The pass-through IGAs are required in order for Phoenix to reimburse Valley Metro for eligible expenses.

COST AND BUDGET All expenses are in the approved FY 2017 Adopted Operating and Capital Budget and 5-Year Capital Program. The grant funds will offset expenses, reducing the net cost to the Public Transportation Fund and member agency budgets.

STRATEGIC PLAN ALIGNMENT This item relates to the following goals and strategies in the Five-Year Strategic Plan, FY 2016 – 2020: • Goal 2: Advance Performance Based Operation o Tactic C: Deliver projects and services on-time/on-budget

COMMITTEE PROCESS RTAG: October 18, 2016 for information TMC: November 2, 2016 approved Board of Directors: November 10, 2016 for action

RECOMMENDATION Staff recommends that the Board of Directors authorize the Interim CEO to execute the IGAs and change order with the City of Phoenix for the listed grants.

CONTACT Paul Hodgins Interim Chief Financial Officer 602-523-6043 [email protected]

ATTACHMENT None

DATE AGENDA ITEM 4 November 2, 2016

SUBJECT Regional ADA Paratransit Service Update

PURPOSE To provide an update regarding the operation and cost of regional ADA paratransit services which were implemented on July 1, 2016.

BACKGROUND/DISCUSSION/CONSIDERATION Prior to July 1, 2016, customers who needed to take dial-a-ride trips which did not remain within a defined local dial-a-ride service area were required to transfer between local dial-a-ride programs. These transfers were difficult for customers, operationally challenging for dial-a-ride providers, and costly for the agencies funding the service. For all of these reasons, the Valley Metro Board of Directors adopted a policy to eliminate dial-a-ride transfers by providing seamless regional dial-a-ride service for customers who would otherwise be required to make a dial-a-ride transfer.

Regional dial-a-ride service was implemented successfully on July 1, 2016, and from the outset, it has proven popular with customers. Currently, demand is trending higher than staff had projected, but trip lengths are generally lower than staff had anticipated. Given the significance of the impacts which regional dial-a-ride appear to be having on the overall demand for and cost of both local and Regional Dial-a-Ride services for each of our member jurisdictions, staff will provide an update to the Board (based on July, August and September trip and cost data) showing the relative impacts for our member jurisdictions and for the region as a whole.

COST AND BUDGET None. This item is for information.

STRATEGIC PLAN ALIGNMENT This item relates to the following goals and strategies in the Five-Year Strategic Plan, FY 2016 – 2020:

• Goal 1: Increase customer focus o Tactic C: Enhance customer service to member cities. • Goal 2: Advance performance-based operations o Tactic A: Operate an effective, reliable, high performing transit system.

COMMITTEE PROCESS RTAG: October 18, 2016 for information TMC: November 2, 2016 for information Board of Directors: November 10, 2016 for information

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 85003 • 602-262-7433

RECOMMENDATION This item is for information only.

CONTACT Wulf Grote Director, Capital and Service Development 602-322-4420 [email protected]

ATTACHMENT None

2 10/26/2016

Valley Metro Regional ADA Dial-a-Ride

November 2016

Background for Regional DAR Start-up • Service began on July 1, 2016 • Culmination of an 18-month process – VM and member agency staff – Strong input from disability community • Everyone anticipated strong demand for service • Projections based on transfer trip experience • Service has been more popular than anticipated

1 10/26/2016

Regional Dial-a-Ride Service Area

Regional DAR Performance Metrics

Metric RDAR Actual Goal

On-Time Performance 97.2% 95.0%

Customer Complaints/1,000 Trips 1.1 2.0

Percentage of Shared-Trips* 5.5% 10.0%

*10% is the contractual goal for the East Valley Dial-a-Ride contract. There is no contractual trip- sharing goal for regional service which is operated under the Northwest Valley Dial-a-Ride contract. 4

2 10/26/2016

Regional DAR FY17 Q1 Projected to Actual

Q1 Q1 Jul Aug Sept Variance Actual Projected Total Trips 7,187 10,092 10,783 28,062 11,643 16,419

Total Miles 115,173 160,051 175,568 450,792 204,217 246,575 Average Trip 16.0 15.9 16.3 16.1 17.5 -1.4 Length (miles) Total Cost $314,417 $437,781 $486,812 $1,239,010 $545,393 $693,617

Regional DAR Impact on Local DAR Services Comparison Between DAR Trips for Q1 FY16 and Q1 FY17 Q1 FY16 Q1 FY17 Change East Valley* 78,791 71,772 -7,019 Glendale (ADA trips only) 5,239 3,308 -1,931 NW Valley* 24,957 26,912 1,955 Peoria (ADA trips only) 1,718 2,150 432 Phoenix/SW Valley 88,355 77,820 -10,535 Local DAR Total 199,060 181,962 -17,098 Regional* 0 28,062 28,062 Net Change 199,060 210,024 10,964 *Values for Q1 FY17 include actuals for July and August and estimates for September. 6

3 10/26/2016

Next Steps • Continue to monitor trips and cost • Identify budget resources and needs • Work with existing contractor to increase trip- sharing • New contract will better support efficient service

DATE AGENDA ITEM 5 November 2, 2016

SUBJECT Future Agenda Items Request and Report on Current Events

PURPOSE Chair Williams will request future agenda items from members, and members may provide a report on current events.

BACKGROUND/DISCUSSION/CONSIDERATION None

COST AND BUDGET None

COMMITTEE PROCESS None

RECOMMENDATION This item is presented for information only.

CONTACT Scott Smith Interim Chief Executive Officer 602-262-7433 [email protected]

ATTACHMENT Pending Items Request

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 85003 • 602-262-7433

Pending Items Request

Item Requested Date Requested Planned Follow-up Date

November 2, 2016 Joint Meeting Agenda

Valley Metro RPTA and Valley Metro Rail Thursday, November 10, 2016 Lake Powell Conference Room 101 N. 1st Avenue, 10th Floor 11:00 a.m.

Action Recommended

1. Items from Citizens Present (yellow card) 1. For information

An opportunity will be provided to members of the public at the beginning of the meeting to address the Board on non-agenda items. Up to three minutes will be provided per speaker or a total of 15 minutes for all speakers.

2. Chief Executive Officer’s (CEO) Report 2. For information

Scott Smith, Interim CEO, will brief the Boards on current issues.

3. Minutes 3. For action

Minutes from the September 22, 2016 Joint Boards of Directors meeting are presented for approval.

4. Public Comment on Agenda Action Items (blue card) 4. For information

5. Information Technology Services Award 5. For action

Scott Smith, Interim CEO, will request that the Boards of Directors authorize an award of a 5-year contract to Enterprise Technology Services (ETS) for information technology services for an amount not to exceed $2,174,185.

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 85003 • 602-262-7433

6. Commercial Property and Liability Insurance Coverage 6. For action Purchase

Scott Smith, Interim CEO, will request that the Boards of Directors authorize the purchase of renewal coverage for Valley Metro’s insurance needs, for an amount not to exceed $1,713,648. RPTA’s obligation is $253,842. VMR’s obligation is $1,459,806.

7. Fiscal Year 2018 Budget Process 7. For information

Scott Smith, Interim CEO, will introduce Paul Hodgins, Interim CFO, who will provide information which describes the integrated agency approach to the FY 2018 budget process.

8. Introduction to the Public Transportation Safety Program - 8. For information Safety Management System (SMS)

Scott Smith, Interim CEO, will introduce Adrian Ruiz, Director Safety Security and Quality Assurance, who will provide information regarding the implementation of the Safety Management System (SMS) for Valley Metro in line with the National Transportation Safety Program new rule making 49 CFR Part 673 (August 2016).

9. Chief Executive Officer Recruitment Update 9. For information

Scott, Smith, Interim CEO, will provide an update on the CEO recruitment process.

10. Possible Executive Session 10. For information and possible The Board may vote to enter Executive Session pursuant to A.R.S. action 38-431.03(A)(1) to discuss applications for employment or appointment of the Chief Executive Officer, Chief Financial Officer and Internal Audit Manager.

11. Executive Session Action Items 11. For information and possible The Boards may take action related to items discussed as part of action the Agenda Item 10.

12. FY17 1st Quarter Reports 12. For information

Quarterly reports for the 1st Quarter of FY17 are provided for information.

13. Travel, Expenditures and Task Order Changes 13. For information

The monthly travel, expenditures and task order changes for Valley Metro RPTA and Valley Metro Rail are presented for information.

14. Future Agenda Items Request and Report on Current 14. For information Events

Chairs Williams and Mitchell will request future agenda items from members, and members may provide a report on current events.

DATE AGENDA ITEM 1 November 2, 2016

SUBJECT Items from Citizens Present

PURPOSE An opportunity will be provided to members of the public at the beginning of the meeting to address the Boards on non-agenda items. Up to three minutes will be provided per speaker or a total of 15 minutes for all speakers.

BACKGROUND/DISCUSSION/CONSIDERATION None

COST AND BUDGET None

COMMITTEE PROCESS None

RECOMMENDATION This item is presented for information only.

CONTACT Scott Smith Interim Chief Executive Officer 602-262-7433 [email protected]

ATTACHMENT None

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 85003 • 602-262-7433

DATE AGENDA ITEM 2 November 2, 2016

SUBJECT Interim Chief Executive Officer’s Report

PURPOSE Scott Smith, Interim Chief Executive Officer, will brief the Boards on current issues.

BACKGROUND/DISCUSSION/CONSIDERATION None

COST AND BUDGET None

COMMITTEE PROCESS None

RECOMMENDATION This item is presented for information only.

CONTACT Scott Smith Interim Chief Executive Officer 602-262-7433 [email protected]

ATTACHMENT None

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 85003 • 602-262-7433

DATE AGENDA ITEM 3 November 2, 2016 Minutes of a Joint Meeting of Valley Metro RPTA and Valley Metro Rail Boards of Directors Thursday, September 22, 2016 12:15 p.m.

Valley Metro Rail Participants Mayor Mark Mitchell, City of Tempe, Chair Vice Mayor Dennis Kavanaugh, City of Mesa, Vice Chair Councilmember Rick Heumann, City of Chandler Councilmember Lauren Tolmachoff, City of Glendale Thelda Williams, City of Phoenix

Chairs William and Mitchell called the meeting to order at 12:22 p.m.

The Pledge of Allegiance was recited.

1. Chief Executive Officer’s Report

Mr. Smith said thank you, Madam Chair, Mr. Chair. Members of the Boards, welcome today. I hope we've sort of reversed the order like we did last time because we have some pressing business that we thought it would flow better in this, so I appreciate your

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 85003 • 602-262-7433

patience and willingness to work with us on this.

The last month has been one of many events, many accomplishments. And I'd like to share a few of those with you.

Over the last couple of weeks, we had two major milestones that we met again regarding rail projects that are in the works. The first is that we completed FTA funding submittals for both the South Central Extension and the Tempe Streetcar for the President's fiscal year '18 budget. Now you may be asking why we're submitting for Tempe Streetcar, because that was already in the budget. Well, it is in the fiscal '17 budget. But because Congress has failed to appropriate the funds that are in the budget, we needed to resubmit so to make sure that if Congress fails to somehow appropriate that we are in the mix for the next fiscal year

This was especially challenging because of shifting and changing roles. And I'd like to commend our staff and staff from Tempe and FTA for working with us to be able to make the submittal and ensure that Tempe has a place at the table.

The next one was also a very big accomplishment and that is the submittal for the South Central light rail project, approximately a five mile extension of our light rail, literally creating a new line from downtown Phoenix down South Central to Baseline.

South Central was making its initial application for the FTA New Starts Program. And the reason why this is significant is we have fast-tracked this submittal. And under the normal course of timing, this probably would not have been ready for this year and we would have had to wait till next year to be in the fiscal year '19 budget.

But because of a real concerted effort with Valley Metro staff working with Phoenix staff and, once again, the FTA, we were literally able to bring this application in one year before we would normally have done it, and that's a great accomplishment.

And I think sometimes we take for granted the efforts of people, so I'd like to commend Valley Metro staff and our consultants, City of Phoenix, and thank the FTA for their help in this.

The next thing is that Valley Metro received a first place, Crescordia for Art in Public Places for the Central Mesa and Northwest Extension public art programs at Arizona Forwards Annual Environmental Excellence Awards banquet. Helping Valley Metro agency and the city staff accept the award were board members Mesa Vice Mayor and Valley Metro Board member Dennis Kavanaugh, Phoenix Vice Mayor Kate Gallego, and public artist Mary Shindell.

This is one of just a series of awards that this organization and its agency, its partner cities have received for work done on both central Mesa and Northwest. And, once again, these awards are no accident. It really recognizes a high level of achievement in work and I want to recognize this is a team effort. Cities and Valley Metro and others 2

have been involved to create transit, not only as a place to get from point A to point B, but to really become part of our communities and change the face of our communities. So congratulations to them.

On September 28, coming up in less than a week, the 50th Street Light Rail Station Announcement Event to acknowledge the project will take place at 9:00 a.m. near 50th Street and Washington. This is part of Phoenix's Prop 104 T2050 capital program. And it's being paid for by them. We're excited for this project.

Soon after that on October 15, the Gilbert Road Extension Groundbreaking Ceremony and fall festival to celebrate with the neighboring community kickoff construction will be at 9:00 a.m. at the northeast corner of Gilbert Road, Stapley Drive and Main Street, I should say, in Mesa. So we have two new projects that are kicking off right now. We're excited about that.

We also have some exciting things coming up in October that with the expansion of service in Phoenix, once again, as a result of the T2050, we're going to spend the next month in educating riders throughout the Valley, because this impacts not only City of Phoenix residents, but obviously residents in all of our cities. And so we're going to be working Valley Metro in conjunction with the City of Phoenix staff are working to get the word out to educate and also to celebrate this expansion of service. We're looking for big changes. And come the third week of October, we're going to be anxious to see how this expanded service and shorter frequencies are going to change things. And I believe they will.

Also in the month of August, Valley Metro Rail provided extra service, and we think that August is a down month because it's hot, seventeen different events along our lines.

As we've talked to other agencies, other systems around the country, we do have a unique setup. Most systems handle special events. Our special events, because we have both downtown Phoenix and Chase Field, the Talking Stick, and we also have ASU, and the stadium we have festivals in our downtowns.

Because we now go through three downtowns, we have a lot of special things that happen along our line. And I think it's just the growing identity of our line, which will truly be identified by not only the daily use, but also the special use. And our staff under Ray Abraham, I'd like to congratulate them and with our contractors that do a great job of making service and these special events seamless. The fact that I don't get a lot of texts or e mails on the nights, and you don't either on these special events, show that they do a great job. So thank you.

October is also Rideshare Month. Valley commuters are invited to celebrate Rideshare Month in October by leaving their car at home to carpool, vanpool, ride transit, telework, bike, or walk.

Commuters can pledge to use an alternative transportation mode and/or create or join a commuter challenge team for opportunities to fight pollution, congestion, win prizes. This is just part of the, once again, our communication to let people know that there are options. And those options are getting better and better with each passing day.

Also I would like to talk about, you'll hear more and more, as I've talked in the past about safety and security being a top priority for this organization. I know it is for you. As part of that, our safety and security group led by Adrian, there's Adrian over there, conducted a second meeting of the incident-centered Care and Enforcement Project.

This meeting focused on the tribal communities and outreach services with a goal of connecting Native American customers with better resources. An ad hoc group will be formed to focus on proactive outreach using public transit as the contact locations.

The idea is to not just enforce but to literally try and be proactive in identifying those who use our system who have other needs and those other needs, of course, fall into our system and create challenges for us. And rather than just push them away, we want to engage them and get them to a place where it helps both of us in that effort

Next month you will be receiving what is the first of what I hope is an ongoing report on these safety and security efforts from Adrian and her team. We're going to start talking about how we can increase not only the real safety but also the perception of safety and security on both our rail line and on our buses.

And it's a real challenge for us. If people don't feel safe on our buses and trains, they don't ride them. And if they don't ride them, it's not only a revenue issue, but we at that point in time failed to adequately fulfill our mission which is to serve our communities

As part of that, I'd just like to give you a brief update on our August ridership numbers. The trend that we've talked about every month is continuing. Our bus ridership for the month was down almost 10 percent year over year. But our rail was up 20 percent.

And I just recently returned from the American Public Transit Association Annual Conference in Los Angeles, and this is an ongoing or recurring or consistent challenge for nearly every system in the country. Most systems are seeing an increase in rail. And nearly everyone is also seeing a decrease in bus ridership.

What's going to be interesting is that we're going to be tracking the changes that come when Phoenix expands its service. We're going from routes that have long frequencies, thirty minutes or more, down to more reasonable or shorter ones. And we're going to anxiously follow that data to see if that has an impact on ridership. We would hope it would. But there are others across the country are looking at this also.

Because this is one of the largest and most significant one-time rollouts of improved service and especially threshold service, where you're going across that thirty minute- lead-time threshold down to something like twenty minutes, where you start to attract 4

hopefully a different kind, not a different kind but a new group of riders simply because you're now providing a level of service that is more conducive to reliability and to their needs.

So we're going to be watching that carefully. And we will be reporting back to you as we go there.

Also in November coming up oh, by the way. I keep saying November that is because you may have been notified that we will not be having a meeting in October. We will be having and our next meeting will be November 10. And so it will hopefully won't be too big for you.

We'll also be reporting on the first few months of our activity with our regional Dial A Ride as we promised. So Madam Chair, Mr. Chair, that's my report.

Chair Williams said are there any questions? Hearing none, we will go to Item 2.

2. Minutes

Minutes from the August 18, 2016 Joint Board meeting were presented for approval.

(VMR Motion) IT WAS MOVED BY VICE MAYOR KAVANAUGH SECONDED BY COUNCILMEMBER WILLIAMS AND UNANIMOUSLY CARRIED TO APPROVE THE JOINT BOARD MEETING MINUTES FOR AUGUST 18, 2016.

(RPTA Motion) IT WAS MOVED BY COUNCILMEMBER HALL SECONDED BY COUNCILMEMBER FARR AND UNANIMOUSLY CARRIED TO APPROVE THE JOINT BOARD MEETING MINUTES FOR AUGUST 18, 2016.

3. Public Comment on Agenda Action Items

Mr. Crowley said with this being the joint meeting, I've got the management committee minutes here or not minutes but the agenda and that. And they had a joint meeting also and their approval of the Valley monthly payments of twenty five thousand.

Chair Williams said you asked to speak on Item 4 which is Website Redesign and Development.

Mr. Crowley said no, I was what I'm speaking on is that the management and the elected's documents do not match.

Chair Williams said you only can speak on Item 4.

Mr. Crowley said okay. On the Website. That goes all the way to our bus book, et 5

cetera and all the communications levels. Well, with the bus, you know, your changes coming tomorrow, what are you going to be doing? Are you going to be putting out a new bus book? Is it going to be correct?

When I hear about this Webinar or Website and it's replacing the one that you had with the incident that happened last month when my girlfriend and I coming back from Aguila trying to use EXPRESS, stopping in Surprise to leave our vehicle, we went to drop it at 129th and Thunderbird, which is what the book says is you're supposed to do.

Chair Williams said what's that got to do with the Website?

Mr. Crowley said and there is no stop there. The entire 571 route doesn't exist the way it was.

When you go to the Website to try to find these things out it isn't what it's supposed to be. That was the suggestion that was sent to us on what we should have done, so with what you're doing supposedly making it more accessible, don't forget that the other part of the equation is the bus book. You need to print it right. And next month are you doing that? Or with the April changes, are you going to produce a new book.

Chair Williams said thank you. That is the only card to speak. So I would ask Scott if you want to give a brief explanation here.

Mr. Smith said I'd like to introduce Hillary Foose, Director of our Communication and Marketing, who will introduce and request the Boards authorize the execution of a contract for our web redesign. Hillary.

Ms. Foose said thank you. Madam Chair, Mr. Chair, thank you for your time. Going to walk you through very quickly a PowerPoint that gives you an overview of what we have in front of you today about the Website redesign and development contract award.

So a little bit of background for you and rationale for why we need a redesign, the Valley Metro.org website obviously is a high-trafficked website with more than five million monthly page views. However, the back end of the current website is very limited. It was built several years ago. And as you know how fast technology is moving, we need to have a back end that provides us with greater functionality.

We also want to take advantage and make sure we're adapting to trends. And so as you well know and as we see from many of our surveys and certainly from the stats of our website today, many, many more people are coming in via their mobile phones or their tablets.

Also, we recently did a usability study to understand where we can improve the website as we think about this next generation site. And many of the comments were that the navigation is somewhat complicated, so our goal here is to make sure that it's simpler and just generally easier to use 6

Continuing on with some of our objectives, as the first bullet lists, we want to overall in many different ways improve the overall visitor experience and the ease of navigation. One of the core missions is to make sure that our website is mobile responsive. I'm sure you guys have been to websites today that dynamically change based on the phone or the tablet that you're using. That's the experience that we want to give our visitors.

Obviously accessibility remains key and our website today could be improved, and we'll be putting in mechanisms to make sure that we have the utmost of accessibility for our passengers with disabilities.

And lastly, we want to create a rider profile function that would allow a rider to build a custom profile based on their interest, their needs, that we can then push out real-time service alerts. So I'm Hillary Foose. I care about the I-17 RAPID and the zero, and whatever routes that you use. And based on your preferred method of communication, we can push out alerts to you so you can understand what's going on with your route. That's something we hear quite commonly that people want to control their destiny and want to know what's going on. And with this rider profile we'll be able to do that

Similarly an online fare media account as we think about growing our technology as it relates to our fare and fare collection system. It could be a place where people can buy fares, house it, and then it can ping to their mobile phone to ultimately ride the system.

So this back end helps us in a lot of different capacities to get us up to speed with technology and what passengers want.

Our procurement process, we issued the RFP in May. We were pleased to receive five very good proposals. Who clearly came out on top is the proposer that we're recommending to you today who is Steer Davies Gleave. They are they put together a great proposal and they also put together a great team of very high tech professionals both in user interface design, development and hosting, so we were very pleased with them and the team they put together.

A little bit more about Steer Davies Gleave, they are nationally and internationally known as a transit information and design experts, specializing in real-time information and trip planning.

As you can see there, they worked recently for some of our peers in the country as well as internationally really with a great backbone for providing trip planning experiences that are very customized and user friendly.

They put together a very innovative set of concepts that was very compelling and also what was equally compelling was that their price was very competitive and they put together a very expedited timeline which we were also very interested in.

So the timeline is aggressive but we think realistic that we would get started as early as next month based on your recommendation and we would have something to deliver by late summer of next year. They have the full team ready to go and we look forward to getting them going. So that concludes my presentation.

This is the recommendation before you to recommend that the boards authorize the interim CEO to execute a three year joint agreement between the RPTA and Valley Metro Rail with Steer Davies Gleave for an amount not to exceed $396,770. And the costs are split between the two organizations as you can see there before you. I'm happy to answer any questions.

(VMR Motion) IT WAS MOVED BY VICE MAYOR KAVANAUGH, SECONDED BY COUNCILMEMBER TOLMACHOFF AND UNANIMOUSLY CARRIED TO AUTHORIZE THE INTERIM CEO TO EXECUTE A THREE-YEAR JOINT VALLEY METRO RPTA-VALLEY METRO RAIL CONTRACT WITH STEER DAVIES GLEAVE FOR WEBSITE REDESIGN AND DEVELOPMENT IN AN AMOUNT NOT TO EXCEED $396,770 BEGINNING OCTOBER 1, 2016 AND TO ESTABLISH A CONTRACT CHANGE CONTINGENCY OF $39,677 (10%). THE VALLEY METRO RPTA PORTION WILL NOT EXCEED $264,513. THE VALLEY METRO RAIL PORTION WILL NOT EXCEED $132,257.

(RPTA Motion) IT WAS MOVED BY COUNCILMEMBER PETERSON, SECONDED BY COUNCILMEMBER ORSBORN AND UNANIMOUSLY CARRIED TO AUTHORIZE THE INTERIM CEO TO EXECUTE A THREE-YEAR JOINT VALLEY METRO RPTA- VALLEY METRO RAIL CONTRACT WITH STEER DAVIES GLEAVE FOR WEBSITE REDESIGN AND DEVELOPMENT IN AN AMOUNT NOT TO EXCEED $396,770 BEGINNING OCTOBER 1, 2016 AND TO ESTABLISH A CONTRACT CHANGE CONTINGENCY OF $39,677 (10%). THE VALLEY METRO RPTA PORTION WILL NOT EXCEED $264,513. THE VALLEY METRO RAIL PORTION WILL NOT EXCEED $132,257.

5. Chief Executive Officer Recruitment Update

Mr. Smith said Madam Chair, Mr. Chair, I'd like to turn the time over to Vice Mayor Dennis Kavanaugh who is the chair of our Ad Hoc Recruitment Committee to give and I did it right as he was taking a bite, so I'll buy him like five, ten seconds.

Dennis has been a good thing and he's now winding down, he's got a month or two left on the Council and on our Board. We've been very, very appreciative. I'm saying that semi-jokingly, but really want to tell him how much we appreciate his second stint here with us and a lot of years of service.

Vice Mayor Kavanaugh said thank you. I wanted to report on the work of the ad hoc committee has been very busy in continuing to review the applications for the CEO 8

positions.

We had, since we last met, we authorized more intensive background checks on applicants. And we also felt the need to gather input through the management committee from the cities that serve on that, and they very kindly designated eight of their members from cities geographically distributed to review applications that we've received and offered their good thoughts and comments since they're in the business of hiring executives like we're looking at here. And we found those to be very helpful.

We will be meeting later today and will be continuing some interviews that we'll be doing. This afternoon we'll be continuing on with our work. And we will be reporting again back to the Boards on our progress in terms of reviewing the applications and analyzing the search process. Thank you.

Mr. Smith said I just want to thank Andy and Maricopa County who has really done a great job in helping us navigate through this process, really, I mean, thank you so much. They stepped up and volunteered to help us out with this and it's been great.

And by the way, just to reiterate, this is moving as was presented to you on schedule and so the follow up interviews that the vice mayor is talking about will take place starting today and moving on. And I think we're still on schedule to come back -- and include the Board. You will be included -- as the schedule indicated.

6. Possible Executive Session

Chair Williams said next is a possible Executive Session.

(VMR Motion) IT WAS MOVED BY VICE MAYOR KAVANAUGH, SECONDED BY COUNCILMEMBER TOLMACHOFF AND UNANIMOUSLY CARRIED TO ENTER INTO EXECUTIVE SESSION.

(RPTA motion) IT WAS MOVED BY COUNCILMEMBER ORSBORN, SECONDED BY COUNCILMEMBER FARR AND UNANIMOUSLY CARRIED TO ENTER INTO EXECUTIVE SESSION.

The regular meeting adjourned at 12:45 p.m. The regular meeting reconvened at 1:08 p.m.

Chair Mitchell said we'll go ahead and reconvene the Valley Metro Rail Board meeting.

Chair Williams said and the RPTA meeting.

7. Executive Session Action Items

Mr. Smith said Madam Chair, Mr. Chair, as we all know for several months we've been dealing with issues related to the previous CEO of these organizations. And we're here to ask you for consideration of an action on a possible resolution to this situation. And I'd like to turn the time over to our General Counsel Mike Minnaugh, who will take it here. Mr. Minnaugh.

Mr. Minnaugh said thank you, Mr. Smith. Madam Chair, Mr. Chair, Board members, as you know this case involves an employment dispute between Valley Metro and its former CEO Steven Banta.

On November 24, 2015, Mr. Banta tendered his resignation from his employment as the Chief Executive Officer of Valley Metro.

A few months later, on or about April 29, 2016, Mr. Banta served a notice of claim with Valley Metro Board members and others seeking damages in the amount of $1.7 million. Therein he had asserted claims concerning circumstances surrounding his resignation of employment and also his employment contract with Valley Metro. The law firm of Littler Mendelson is defending Valley Metro with the assistance of general counsel.

Valley Metro has reached a tentative settlement agreement with Mr. Banta subject to approval of the Boards of Directors today. The settlement will end the dispute with Mr. Banta avoiding the risk inherent with litigation, resolving all financial issues, and completely releasing Valley Metro from any further risk of dispute or litigation with Mr. Banta.

The Boards may recall that during the course of Mr. Banta's years of employment, Valley Metro had contributed funds on a yearly basis to an annuity for him. The annuity has grown and it now has a cash surrender value of approximately $305,000.

Subsequent to Mr. Banta's resignation, Valley Metro retained his annuity. We did this pending the outcome of an audit conducted by the City of Phoenix Audit Department. That audit involved a review of Mr. Banta's travel and entertainment expenses for which he was reimbursed while he was employed by Valley Metro.

Valley Metro held onto the annuity to evaluate the extent of possible offsets against it for disputed expenses that would be owed by Mr. Banta to Valley Metro.

The audit has now been concluded. Several months have passed. We have had an opportunity to comprehensively review the audit, evaluate it, which has now put us in a position to settle this matter with certainty and finality.

The terms and conditions of the proposed settlement include these terms: Mr. Banta will dismiss his $1.7 million claim against Valley Metro, its directors, and all others. Mr. 10

Banta will reimburse $125,000 to Valley Metro to cover disputed expenses incurred during his employment. Valley Metro will release to Mr. Banta the remainder of the annuity which is $180,000. And all parties will completely release one another from any and all claims in this matter.

We believe that reaching a settlement on these terms is in the best interest of Valley Metro. The Boards' approval today of this settlement will conclude the dispute with Mr. Banta and the risk and uncertainty of litigation, compensate Valley Metro for questionable expenses, eliminate the need for more staff resources and costs and legal fees, and place Valley Metro in the best position possible to focus on its future going forward.

With that said, it is our recommendation that the Boards authorize settlement of all claims on the terms and conditions proposed here today and authorize and direct general counsel to finalize settlement documents for execution by both Board chairs.

Chair Williams said thank you. Are there any questions, comments or a motion?

Chair Mitchell said yes, Madam Chair. Is there a motion from the Valley Metro Rail regarding the settlement that was just mentioned. Yes, Vice Mayor Kavanaugh.

Vice Mayor Kavanaugh said thank you, Mr. Chairman. On behalf of Valley Metro Rail I move to approve the terms and conditions of the settlement with Mr. Banta as presented by Mr. Minnaugh and to authorize Mr. Minnaugh to finalize an agreement consistent with these terms and Chairman Mitchell to sign on behalf of the Board.

The terms and conditions are understood to include that: 1. Mr. Banta will dismiss his claim of $1.7 million against all parties. 2. Mr. Banta will reimburse $125,000 to Valley Metro for disputed previous expenses during his employment with Valley Metro. 3. Valley Metro will release to Mr. Banta $180,000 from his annuity. 4. All parties will completely release any and all claims against one another on this matter.

Councilmember Tolmachoff said second.

Chair Mitchell said it's been moved and seconded by Councilmember Tolmachoff. All those in favor from the Metro Rail please say aye.

The VMR Board voted aye.

Chair Mitchell said all those opposed same sign. Madam Chair, that motion carries.

Chair Williams said thank you. Councilmember Hall do we have a motion for the 11

RPTA?

Councilmember Hall said thank you, Madam Chair. I move to adopt the recommendations in motion made and approved by the Valley Metro Rail Board and to authorize Mr. Minnaugh to finalize an agreement consistent with these terms and Chairwoman Williams to sign on behalf of the Board.

Councilmember Farr said I second that.

Chair Williams said I have a motion and a second. All in favor please say aye.

The RPTA Board voted aye.

Chair William said opposed? Motion carries.

Chair William said thank you very much for all your hard work on this. It's taken a long time. But you've done a great job and we appreciate it. Thank you.

Mr. Smith said and Madam Chair, if I might, thanks to the Board for their guidance and direction in this. We hope this closes one chapter. And it's been a long haul, but we hope that all of us including Mr. Banta can move on and focus on the next chapter. And I'm confident that this is a major milestone that will be positive for all the parties involved. Thank you very much for your support.

8. Travel, Expenditures and Task Order Changes

Chair Williams said we will go to Item 8 which is the Travel, Expenditures, and Task Order Changes. Mr. Smith.

Mr. Smith said the information is included in your packet. I would be happy to answer any questions.

9. Future Agenda Items Request and Report on Current Events

Chair William said are there any future agenda items? Hearing none, that concludes this meeting.

Chair Mitchell said that concludes our joint meeting for Valley Metro.

With no further discussion the meeting adjourned at 1:16 p.m.

DATE AGENDA ITEM 4 November 2, 2016

SUBJECT Public Comment on Agenda Action Items

PURPOSE The public will be provided with an opportunity at this time to address the Boards on all action agenda items. Up to three minutes will be provided per speaker to address all agenda items unless the Chair allows more at his/her discretion. A total of 15 minutes for all speakers will be provided.

BACKGROUND/DISCUSSION/CONSIDERATION None

COST AND BUDGET None

COMMITTEE PROCESS None

RECOMMENDATION This item is presented for information only.

CONTACT Scott Smith Interim Chief Executive Officer 602-262-7433 [email protected]

ATTACHMENT None

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 85003 • 602-262-7433

DATE AGENDA ITEM 5 November 2, 2016

SUBJECT Information Technology Services Award

PURPOSE To request authorization for the Interim Chief Executive Officer (CEO) to award a 5-year contract to Enterprise Technology Services (ETS) for information technology services for an amount not to exceed $2,174,185.

BACKGROUND/DISCUSSION/CONSIDERATION Valley Metro Rail Inc. (VMR) and the Regional Public Transportation Authority (RPTA) collectively (Valley Metro) has a contract with Enterprise Technology Services (ETS) to provide IT infrastructure support that expires November 30, 2016, there is no provision within the contract for term extension. Due to the critical nature of these services and Valley Metro system specific operational knowledge, Valley Metro desires to maintain the continuity of these services by retaining the services of (ETS).

ETS has provided the IT services to Valley Metro since December 2011. The services provided to Valley Metro include the following:

1. Performance, Availability and Predictive Failure Monitoring 2. Service Level Response to Alerts/Failures 3. Patch Monitoring and Management 4. Virus Detection Software and Updates 5. Malware Monitoring and Updates 6. Authorized Warranty Service and Administration 7. Software Asset Reporting 8. 7/24/365 IT Help Desk Emergency Support 9. Mobile Device Management 10. Special projects as assigned

ETS has successfully maintained the service level agreement requirement throughout the contract period and has received several compliments from various divisions. The Information Technology Division has been looking at alternatives to engage with other IT service providers and has found no significant benefits for the switch. Based on the successful operations and high level of customer satisfaction as well as to minimize the transition impact from service provider to service provider, it is recommend Valley Metro continue the IT services agreement with ETS.

Valley Metro will obtain continued Information Technology services with ETS services by utilizing a Managed Service Provider (MSP) Cooperative Agreement through the State of Arizona with “Knowledge Services”. Knowledge Services holds a current Cooperative Contract with the State of Arizona and subcontracts with ETS for IT Services. Cooperative Agreements are contracts that are solicited and awarded by other public entities and whose

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 85003 • 602-262-7433

cooperative language allows Valley Metro to utilize these contracts for goods and services it requires. This professional services contract will have variable hours at the contracted fixed rates with a not-to-exceed maximum price. The price is deemed fair and reasonable when compared to an independent cost estimate prepared by staff.

COST AND BUDGET The remaining year IT services renewal expenditure level is $250,000. This amount is included in the overall annual budget for FY2016/2017.

For the remaining Fiscal Year 2016/2017, the RPTA contract obligation is $125,000 and VMR contract obligation is $125,000, which are funded within the Adopted FY2016/2017 Operating and Capital Budget. Contract Obligations beyond FY2017 are incorporated into the Valley Metro Rail Five-Year Operating Forecast and Capital Program (FY2018 thru FY2022). The RPTA portion is funded through regional sources (Regional Area Road Fund) and the VMR portion is funded through the member cities.

COMMITTEE PROCESS RTAG: October 18, 2016 for action TMC/RMC: November 2, 2016 approved Board of Directors: November 10, 2016 for action

STRATEGIC PLAN ALIGNMENT This item relates to the following goals and strategies in the Five-Year Strategic Plan, FY 2016 – 2020: • Goal 1: Increase Customer Focus o Tactic A: Improve customer satisfaction • Goal 2: Advance performance based operation o Tactic A: Operate an effective, reliable, high performing transit system o Tactic C: Deliver projects and services on-time/on-budget

RECOMMENDATION Staff recommends that the Boards of Directors authorize the Interim CEO to award a 5-year contract to Enterprise Technology Services (ETS) for information technology services for an amount not to exceed $2,174,185.

CONTACT William Tsuei Chief Technology Officer 602-495-8253 [email protected]

ATTACHMENT None

DATE AGENDA ITEM 6 November 2, 2016

SUBJECT Commercial Property and Liability Insurance Coverage Purchase

PURPOSE To request authorization for the Interim Chief Executive Officer (CEO) to purchase renewal coverage for Valley Metro’s insurance needs, for an amount not to exceed $1,713,648. RPTA’s obligation is $253,842. VMR’s obligation is $1,459,806.

BACKGROUND/DISCUSSION/CONSIDERATION Currently, Valley Metro purchases commercial insurance to cover losses to Valley Metro-owned property and to protect Valley Metro from claims involving third parties. The insurance is jointly purchased by RPTA and VMR.

Valley Metro’s insurance broker, Arthur J. Gallagher has obtained quotes from insurance carriers to meet the agency’s ongoing insurance needs. Staff met with member agency risk managers and our insurance broker on September 14, 2016 to discuss insurance renewal proposals. The recommendations contained within this memo are supported by the member cities risk managers round table.

The attached Table 1 summarizes the insurance proposal pricing for RPTA. These figures represent RPTA’s allocation of the combined RPTA and VMR insurance premium. Total excess liability limits are $60,000,000 excess of a $250,000 self-insured retention.

The attached Table 2 summarizes the insurance proposal pricing for VMR. These figures represent VMR’s allocation of the combined RPTA and VMR insurance premium. Total excess liability limits are $100,000,000 excess of a $250,000 self- insured retention.

The Valley Metro insurance policies are part of a combined insurance program with RPTA and VMR. The policies cover exposures of both entities and premium is split between the two organizations based on exposure as determined by the insurance underwriters. Due to the overlapping of employees, this combined approach has been beneficial to each agency in the coordination of coverage and in the purchasing power of the combined entities.

COST AND BUDGET The premium costs by type of insurance for RPTA and VMR are provided in the following table:

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 602-262-7433

Coverage Type RPTA VMR TOTAL Premium Premium Renewal Coverage Property $7,758.25 $133,300.75 $141,059.00 Inland Marine Rolling Stock n/a $181,452.00 $181,452.00 Inland Marine Town Lake Bridge n/a $30,710.00 $30,710.00 DIC – Excess Flood/Quake Town Lake Bridge n/a $34,936.00 $34,936.00 Crime $2,997.32 $2,997.32 $5,994.63 Auto Liability & Physical Damage $13,079.80 $66,346.75 $79,426.55 Excess Liability – Buffer Layer $37,023.00 $143,577.00 $180,600.00 Primary Excess Liability – 1st layer $104,796.25 $406,404.95 $511,201.20 Excess Liability – 2nd layer $30,135.00 $116,865.00 $147,000.00 Excess Liability – 3rd layer $17,485.12 $67,808.13 $85,293.25 Excess Liability – 4th layer $27,470.00 $106,530.00 $134,000.00 Excess Liability – 5th layer n/a $77,400.00 $77,400.00 Excess Liability – 6th layer n/a $40,144.80 $40,144.80 Pollution Liability (Renewed in 2015 – 3 yrs.) n/a n/a n/a Stand-Alone Terrorism (NCBR) $2,219.01 $40,459.19 $42,673.20 Cyber/Privacy $10,878.20 $10,878.20 $21,756.40 Grand Total $253,841.93 $1,459,805.09 $1,713,647.02

For the term December 1, 2016 – November 30, 2017 the VMR contract obligation is $1,459,805.09 which is fully funded within the VMR Adopted FY 2017 Operating and Capital Budget. Contract Obligations beyond FY 2017 are incorporated into the VMR Five-Year Operating Forecast and Capital Program (FY 2017 thru FY 2021).

For the term December 1, 2016 – November 30, 2017, the RPTA contract obligation is $253,841.93 which is fully funded within the FY 2017 RPTA Adopted Operating Budget. Contract Obligations beyond FY 2017 are incorporated into the RPTA Five-Year Operating Forecast and Capital Program (FY 2017 – FY 2021).

STRATEGIC PLAN ALIGNMENT This item relates to the following goals and strategies in the Five-Year Strategic Plan, FY 2017 – 2021: • Goal 2: Advance performance based operation o Tactic A: Operate an effective, reliable, high performing transit system. o Tactic E: Maintain strong fiscal controls to support Valley Metro’s long-term sustainability.

COMMITTEE ACTION RTAG: October 18, 2016 for information TMC/RMC: November 2, 2016 approved Board of Directors: November 10, 2016 for action

RECOMMENDATION Staff recommends that the Boards of Directors authorize the Interim CEO to purchase renewal coverage for Valley Metro’s insurance needs for an amount not to exceed $1,713,648.

CONTACT Michael Minnaugh General Counsel Legal Division (602) 744-5599 [email protected]

ATTACHMENT Table 1 Insurance Proposal Pricing for RPTA Table 2 Insurance Proposal Pricing for VMR

TABLE 1 - Insurance proposal pricing for RPTA Ratable Renewal Expiring % Line of Coverage Policy Limit Exposure Premium Premium Change Renewal Coverage 2016 - $8.6 M values Property Blanket Limit $7,758 $6,789 14.27% 2017 - $8.6 M values Crime 2017 $2,000,000 n/a $2,997 $2,895 3.52% Auto Liability & Physical 2016 – 12 Vehicles $750,000 $13,080 $10,555 23.92% Damage 1 2017 – 14 Vehicles Excess Liability $500,000 Same As Primary $37,023 $ 35,965 2.94% SIR Buffer Layer Primary Excess Liability 2016 - $71,745,734 1st layer in excess of $10,000,000 $104,796 $ 95,355 9.90% 2017 - $78,736,878 $750,000 Excess Liability – 2nd $10,000,000 Same As Primary $30,135 $28,700 5.00% layer Excess Liability – 3rd layer $15,000,000 Same As Primary $17,485 $16,342 6.99% Excess Liability – 4th layer $25,000,000 Same As Primary $27,470 $26,240 4.69% Stand-Alone Terrorism 2016 - 15.8M $50,000,000 $2,219 $2,450 -9.43% (NCBR) 2017 - 15.8M Cyber/Privacy $1,000,000 n/a $10,878 $10,775 .956% Grand Total $253,842 $236,066 7.53% 1 The auto liability and physical damage coverage applies to RPTA non-revenue vehicles. It does not apply to buses used in revenue service.

TABLE 2 - Insurance proposal pricing for VMR Ratable Renewal Expiring % Line of Coverage Policy Limit Exposure Premium Premium Change Renewal Coverage 2016 - $155.1 M Property Blanket Limit $133,301 $123,760 7.71% 2017 - $175.5 M Inland Marine 2016 - $151,190,408 $150,660,000 $181,452 $181,452 0.00% Rolling Stock 2017 - $151,190,408 Inland Marine 2016 - $22,581,224 $22,581,224 $30,710 $30,710 0.00% Town Lake Bridge 2017 - $22,581,224 DIC – Excess Flood & $15,000,000 x/o n/a $34,936 $34,936 0.00% Quake $5mil u/l Crime 2017 $2,000,000 n/a $2,997 $2,896 3.48% Auto Liability & Physical 2016 – 64 Vehicles $750,000 $66,347 $65,347 1.53% Damage 1 2017 – 65 Vehicles Primary Excess Liability $500,000 Same As Primary $143,577 $139,475 2.94% Buffer Layer Primary Excess Liability 1st 2016 - $37,654,381 $10,000,000 $406,405 $369,796 9.90% layer in excess of $750,000 2017 - $44,890,000 Excess Liability – 2nd layer $10,000,000 Same As Primary $116,865 $111,300 5.00% Excess Liability – 3rd layer $15,000,000 Same As Primary $67,808 $63,371 6.99% Excess Liability – 4th layer $25,000,000 Same As Primary $106,530 $101,760 4.69% Excess Liability – 5th layer $25,000,000 Same As Primary $77,400 $74,820 3.45% Excess Liability – 6th layer $15,000,000 Same As Primary $40,145 $36,120 11.00% Pollution Liability $5,000,000 n/a n/a $23,697 2 0.00%2 Stand-Alone Terrorism 2016 – $323.4M $50,000,000 $40,459 $44,661 -9.41% (NCBR) 2017 – $324.7M Cyber/Privacy $1,000,000 n/a $10,878 $10,775 .956% Grand Total $1,459,809 $1,414,876 3.18% 1 The auto liability and physical damage coverage applies to VMR non-revenue vehicles. It does not apply to rail cars used for service.

2 This was renewed in 2015 for a 3-year policy term at a premium of $23,673

DATE AGENDA ITEM 7 November 2, 2016

SUBJECT Fiscal Year 2018 Budget Process

PURPOSE To provide information which describes the integrated agency approach to the FY 2018 budget process.

BACKGROUND Valley Metro’s budget process serves two principal purposes. Within the agency, development of the budget provides a forum for planning of objectives and tasks, with managerial and Board review of programs. It sets the expectations for performance in the coming year. The internal process is collaborative and iterative, with the agency’s senior management providing strategic direction, budget assumptions and critical review. Agency and project managers prepare resource proposals using modified zero- base budget techniques, and financial staff (including the member city Financial Working Group) provide feedback and technical support for the process.

For the agency’s member cities and partner agencies, the budget reports on the status of projects and services, detailing the agency’s operational objectives, capital improvements, and funding plans. Many of the agency’s services are funded in part by member cities, and early collaboration is essential to ensure that member city budgets properly account for Valley Metro’s services.

The annual budget is prepared on an accrual basis and adopted by the Board of Directors each fiscal year. Prior to final adoption, a preliminary budget is presented to the Board of Directors for review and public comment is received. Final adoption of the budget must be on or before June 30 of each year. The budget establishes the Board- approved services, operating activities, capital programs and costs for the coming year. Unspent appropriations lapse at the end of each fiscal year to ensure the Board has positive control of expenditure limits.

Valley Metro also develops a Five-Year Operating Forecast and Capital Program as part of the annual budget process. The five-year plan projects operating activities managed by the agency and capital program improvements that are planned to occur in the five-year period commencing with the annual budget year. The plan identifies revenue projections including PTF sales tax and bond proceeds as well as federal, local government and private sources of funding.

The goal of this process is to achieve delivery of a preliminary consolidated annual budget and corresponding five-year plan by the third week of February.

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 85003 • 602-262-7433

Budget Timeline: The FY 2018 process is outlined below, with preliminary planning beginning in September 2016 and with budget adoption scheduled for May 2017. Key milestones for the development of schedules of member city contribution for intergovernmental agreements are incorporated into the budget process.

Date Milestone Oct 31 Preliminary Rail budget delivered to VMR Member Cities Oct 31 Service change inputs from Member Cities Dec 15 Board reviews Agency goals Feb 16 Board approves service changes effective April 2017 Feb 17 Preliminary Budget delivered to Financial Working Group Feb 17 Draft IGA Estimates to Member Cities Feb 24 Executive Summary / 5 year Plan posted to website Mar 21 End of 30 day review period / Member city comments due Mar 29 Draft Budget delivered to TMC/RMC/AFS Apr 5 Budget presented for information to TMC/RMC Apr 13 Budget presented for information to AFS Apr 20 Budget presented to Board of Directors for information May 16 Member City IGA estimates presented to RTAG for information May Budget presented for approval to AFS, TMC/RMC, and Board Jun Member City IGA’s presented for approval to TMC/RMC and Board

Integrated Agency: The Regional Public Transportation Authority (RPTA) and Valley Metro Rail, Inc. (VMR) are two separate financial entities which have discrete funding sources. Staff resources and contracted services are budgeted based on level-of-effort estimates and actual expense will be allocated on actual time worked for each mode. The planning and utilization of human resources will be managed with the goal of continuing to optimize administrative efficiencies. Valley Metro will present a budget with unified goals and programs to address planning, capital program delivery and operation of fixed route bus, rail and demand response services for the region and the member cities that are served.

COST AND BUDGET Preparation of the FY 2018 Budget is conducted by Valley Metro staff and is incorporated into the FY 2017 Annual Budget.

COMMITTEE PROCESS RTAG: October 18, 2016 for information TMC/RMC: November 2, 2016 for information Board of Directors: November 10, 2016 for information

RECOMMENDATION For information only.

CONTACT Paul Hodgins Interim Chief Financial Officer 602-523-6043 [email protected]

ATTACHMENT None

10/26/2016

Valley Metro FY18 Agency Budget Process

November 2016

Preliminary Budget Schedule FY 2018

Date Milestone Oct 31 Preliminary Rail budget delivered to VMR Member Cities Oct 31 Service change inputs from Member Cities Dec 15 Board reviews Agency goals and strategic initiatives Feb 16 Board approves service changes effective April 2017 Feb 17 Preliminary Budget delivered to Financial Working Group Feb 17 Draft IGA Estimates to Member Cities Feb 24 Executive Summary / 5 year Plan posted to website Mar 21 End of 30 day review period / Member city comments due Mar 29 Draft Budget delivered to TMC/RMC/AFS Apr 5 Budget presented for information to TMC/RMC Apr 13 Budget presented for information to AFS Apr 20 Budget presented to Board of Directors for information May 16 Member City IGA estimates presented to RTAG for information May Budget presented for approval to AFS, TMC/RMC, and Board Jun Member City IGA’s presented for approval to TMC/RMC and Board 2

DATE AGENDA ITEM 8 November 2, 2016

SUBJECT Introduction to the Public Transportation Safety Program - Safety Management System (SMS)

PURPOSE To provide information regarding the implementation of the Safety Management System (SMS) for Valley Metro in line with the National Transportation Safety Program new rule making 49 CFR Part 673 (August 2016).

BACKGROUND/DISCUSSION In December 2015, Fixing America’s Surface Transportation Act (FAST) was signed into law. In August 2016, the Federal Transit Administration (FTA) issued the final rule on the Public Transportation Safety Program. With the new rule, agencies are encouraged to utilize a Safety Management System (SMS) in an effort to maintain effective and responsive safety management and mitigation, including transit asset management.

Although a Safety Management System is shared among the agency divisions and personnel, Valley Metro Safety Security and Quality Assurance are the technical advisors and administrators to begin the process of developing the SMS. The inclusion of the Interim Chief Executive Officer is key to ensuring all employees understand the SMS is a top-down, agency wide approach to managing safety risks and assuring the effectiveness of safety, risk policy, management, assurance and promotion.

As part of the new rule, agencies are directed to provide information on the SMS development to the boards and committees to enhance safety and safety management. Information will be provided to the Board.

COST AND BUDGET None

COMMITTEE PROCESS TMC/RMC: November 2, 2016 for information Boards of Directors: November 10, 2016 for information

RECOMMENDATION Item is presented for information.

CONTACT Adrian Ruiz Director Safety Security and Quality Assurance 602-523-6054 [email protected]

ATTACHMENT None

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 85003 • 602-262-7433

10/26/2016

Public Transportation Safety Program - Safety Management System

November 2016

Public Transportation Safety Program

• Congress concerned by number and severity of accidents • Fixing America’s Surface Transportation (FAST December 2015) • Public Transportation Safety Program (PTSP) final rule August 2016

1 10/26/2016

Safety Management System

A formal top-down, Agency-wide approach to managing safety risks and assuring the effectiveness of safety risk mitigation through systematic policies, procedures and practices.

Pillars • Safety Management Policy • Safety Risk Management • Safety Assurance • Safety Promotion

2 10/26/2016

First Steps • Draft Policy statement for Agency – Presentation to RTAG/TMC/RMC/Boards • Information Only • Agency survey • Gap analysis for current safety program capabilities including assessment of employee survey • Creation and implementation of an agency wide reporting mechanism for safety issues/concerns • Long term project

DATE AGENDA ITEM 9 November 2, 2016

SUBJECT Chief Executive Officer Recruitment Update

PURPOSE To provide an informational update regarding the Chief Executive Officer recruitment process.

BACKGROUND/DISCUSSION/CONSIDERATION Scott Smith, Interim CEO will provide an update on the recruitment process.

COST AND BUDGET None

COMMITTEE PROCESS TMC/RMC: November 2, 2016 for information Boards of Directors: November 10, 2016 for information

RECOMMENDATION This item is presented for information.

CONTACT Scott Smith Interim Chief Executive Officer 602-262-7433 [email protected]

ATTACHMENT None

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 85003 • 602-262-7433

DATE AGENDA ITEM 10 November 2, 2016

SUBJECT Possible Executive Session

PURPOSE The Board may vote to enter Executive Session pursuant to A.R.S. 38-431.03(A)(1) to discuss applications for employment or appointment of the Chief Executive Officer, Chief Financial Officer and Internal Audit Manager.

BACKGROUND/DISCUSSION/CONSIDERATION None

COST AND BUDGET None

COMMITTEE PROCESS None

RECOMMENDATION The Board may vote to enter Executive Session.

CONTACT Michael Minnaugh General Counsel 602-262-7433 [email protected]

ATTACHMENT None

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 85003 • 602-262-7433

DATE AGENDA ITEM 11 November 2, 2016

SUBJECT Executive Session Action Items

PURPOSE The Board may take action related to items discussed as part of the Agenda Item 10.

BACKGROUND/DISCUSSION/CONSIDERATION None

COST AND BUDGET None

COMMITTEE PROCESS None

RECOMMENDATION The Board may take action related to the items discussed as part of Agenda Item 10.

CONTACT Michael Minnaugh General Counsel 602-262-7433 [email protected]

ATTACHMENT None

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 85003 • 602-262-7433

DATE AGENDA ITEM 12 November 2, 2016

SUBJECT Fiscal Year 2017 (FY17) First Quarter Reports

PURPOSE To provide an informational update of activities at Valley Metro.

BACKGROUND/DISCUSSION/CONSIDERATION Quarterly Reports are provided as an informational update of Valley Metro activities

• Operations • Communication & Marketing • Safety and Security • Finance • Capital & Service Development

COST AND BUDGET None

COMMITTEE PROCESS RTAG: October 18, 2016 for information TMC/RMC: November 2, 2016 for information Boards of Directors: November 10, 2016 for information

RECOMMENDATION This item is presented for information only.

CONTACT Ray Abraham Hillary Foose Operations and Maintenance Director Director, Communication & Marketing 602-262-7433 602-262-7433 [email protected] [email protected]

Adrian Ruiz Paul Hodgins Director Safety and Security Interim Chief Financial Officer 602-262-7433 602-262-7433 [email protected] [email protected]

Wulf Grote, P.E. Director, Capital & Service Development 602-322-4420 [email protected]

ATTACHMENT Quarterly Reports

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 85003 • 602-262-7433 10/26/2016

Operations & Maintenance FY17 Q1 Report November 2016

Regional Ridership

6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 - July Aug Sept Bus 3,341,716 4,259,040 4,326,018 Light Rail 1,215,447 1,403,213 1,431,383 FY16 Q4 FY16 Q1 FY17 Q1 Bus 11,741,501 13,706,927 11,926,774 Light Rail 4,087,871 3,554,749 4,050,043 Total 15,829,372 17,261,676 15,976,817 2

1 10/26/2016

Fixed Route Bus – East Valley

Performance Indicator Target FY16 Q4 FY16 Q1 FY17 Q1

On-Time Performance ≥ 92% 92% 93% 93% Complaints Per 100,000 ≤ 45 59 54 53 Boardings Mechanical Failures Per ≤ 12 14 9 16 100,000 Revenue Miles Revenue Service ≥ 99.85% 99.80% 99.86% 99.82% Completed Preventable Accidents per ≤ 0.90 0.81 0.71 0.93 100,000 Miles

Ridership -- 3,528,496 4,084,545 3,589,814

Fixed Route Bus – West Valley

Performance Indicator Target FY16 Q4 FY16 Q1 FY17 Q1

On-Time Performance ≥ 92% 95% 94% 93% Complaints Per 100,000 ≤ 45 38 44 43 Boardings Mechanical Failures Per ≤ 12 5 12 6 100,000 Revenue Miles Revenue Service ≥ 99.85% 99.93% 99.99% 99.98% Completed Preventable Accidents per ≤ 0.90 0 0.38 0.38 100,000 Miles

Ridership -- 125,615 137,315 122,315

2 10/26/2016

Light Rail

Performance Indicator Target FY16 Q4 FY16 Q1 FY17 Q1

On-Time Performance ≥ 95% 94% 95% 94%

Complaints Per 100,000 Boardings ≤ 3.0 1.0 0.8 0.5

Preventative Maintenance ≥ 80% 100% 99% 100% Inspections - % On-Time (LRV) Preventative Maintenance ≥ 80% 96% 99% 98% Inspections - % On-Time (Systems) Preventable Accidents per 100,000 ≤ 0.90 .10 0.40 0.12 Miles

Ridership -- 4,087,871 3,554,749 4,050,043

Customer Service – Call Center

Performance Indicator Target FY16 Q4 FY16 Q1 FY17 Q1

Calls Received -- 291,611 367,338 311,015

Complaints Processed -- 8,651 8,201 7,634

NextRide Inquiries Handled by Interactive Voice Response -- 308,165 351,588 308,948 (IVR) NextRide Inquiries Handled by -- 458,461 609,180 475,179 Text Messaging Average Talk Time -- 2:15 2:24 2:15

Average Speed of Answer ≤ 1.00 :20 0:45 :30

3 11/3/2016

Safety, Security & Quality Assurance FY17 Q1 Report

November 2016

Bus Accidents

106 100 Total NTD

211

FY16 Q4 FY16 Q1 FY17 Q1

1 11/3/2016

Dial-a-Ride Accidents

Total NTD

6 5 No NTD Reportable 3 Incidents 110

FY16 Q4 FY16 Q1 FY17 Q1 3

Police Incidents - Bus

18 15 13

8 5

FY16 Q4 FY17 Q1 Total Incidents Criminal Damage Other

2 11/3/2016

Rail Accidents

11 11 11 11 10

NTD

FY16 Q4 FY16 Q1 FY17 Q1 5

Fares Inspected 16.2% 15.9% 664,999 647,591

12% 412,354

FY16 Q4 FY16 Q1 FY17 Q1

% of total ridership 6

3 11/3/2016

Fare Inspections and Fare Evasions

Inspected and Fare Evasion Percentage 20.0%

18.0% 16.0%

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0% Sep‐15 Oct‐15 Nov‐15 Dec‐15 Jan‐16 Feb‐16 Mar‐16 Apr‐16 May‐16 Jun‐16 Jul‐16 Aug‐16 Sep‐16 Percentage Inspected Fare Evasion

Fare Compliance Total Inspections for Q1= 647,591

94% 93% 94%

FY16 Q4 FY16Q1 FY17 Q1 8

4 11/3/2016

Citations Issued by Allied Barton

365

275

FY16 Q4 FY16 Q1 FY17 Q1 9

Top Violations

77 69

Occupy Any Transit Vehicle Without Paying Fare Fail to Exhibit Proof of Fare Payment Disobey Traffic Signal, Secutity Notice, Sign or Marker Possess Open Container or Consume Alcohol on Transit Property/Vehicle 10

5 11/3/2016

Fare Sweeps Total Activity

Total Contact: 963 • Fare Recovery: 143 • Citations: 28 • Trespasses: 7 • Arrests: 2

The purpose of a fare sweep is to ensure Fare Compliance and Revenue Recovery 11

Criminal Activity in Q1 2017 (Platforms and Trains)

413

149 133

8 3 5 7 12 6

PROPERTY CRIMES CRIMES AGAINST PERSONS TRESSPASING & OPEN MEDICAL RESPONSES WARRANT ARREST CONTAINER

Platform Park N' Ride 12

6 11/3/2016

Quality Assurance • Buy America Audit VM and •50th St – 60% Design Designer: Results: Closed Submittal Audit: Distributed • 60% Design Submittal • CME SSCVR Audit: Audit: Closed Transmitted to ADOT, VM is awaiting Close Out Letter • 90% Design & 100% IFC Design Submittal Audit: • NWEXT SSCVR Audit: Open Transmitted to ADOT, Response required by • CME & NWE TPSS Audit: 10/28/2016 Open

7 10/26/2016

Capital and Service Development FY17 Q1 Report November 2016

Service Development FY17 Q1 Report

1 10/26/2016

Transit Planning Projects

Project Name Type Status Complete November Buckeye Transit Plan Study • Incorporating final comments from City of Buckeye 2016

Mesa Five-Year Transit Plan Study January 2017 • Draft under review by Mesa staff

• Completed the Preferred Alternative Report May • Developed preliminary site plan and draft Peoria Transit Facility Study Study 2017 environmental clearance document • City of Peoria internal discussions in process Grand Avenue Transit December • Prepared Draft Study Report Study • Obtained travel patterns and infrastructure data Feasibility Study 2016 traffic analysis 3

Transit Planning Projects

Project Name Type Status Complete • Researched completed work that will contribute to Transit Stop Inventory Study June 2017 the study and Accessibility Study • Developed final draft scope of work • Performed Staff work in preparation for member Short Range Transit Regional May agency outreach which in the second quarter of Program Update 2017 FY17. • Produced sub-programs needed to allow facilitate GIS Farebox Data December data processes Project Processing Tool 2016 • Added features to be able to process farebox data going back to 2014. 4

2 10/26/2016

Transit Planning Projects

Project Name Type Status Complete • Received Service Change approval from the Service Board October 2016 Fixed-Route Change October 2016 • Assisted with the Oct. 2016 Transit Book (maps Service Changes Process and schedule files) • Assisted with passenger outreach Service April 2017 Fixed-Route April • Developed cost estimates Change Service Changes 2017 • Prepared outreach material Process

Regional Transit Framework Regional June • Held kickoff meeting with MAG and project Study Update Study 2018 consultant 5

Accessible Transit Services FY17 Q1 Report

3 10/26/2016

Dial-a-Ride – East Valley

Performance Indicator Target FY16Q4 FY16 Q1 FY17 Q1

One-Way Trips -- 80,583 78,791 71,772

On-Time Performance ≥ 95% 97% 97% 97%

Complaints Per 1,000 Trips ≤ 1.5 2.2 2.9 2.0

Cost Per Trip -- $27.00 $25.57 $26.59

Dial-a-Ride – West Valley

Performance Indicator Target FY16Q4 FY16 Q1 FY17 Q1

One-Way Trips* -- 28,444 24,957 26,912

On-Time Performance* ≥ 95% 97% 97% 97%

Complaints Per 1,000 Trips* ≤ 1.5 .91 .40 .97

Cost Per Trip* -- $25.93 $24.47 $26.93

*Mobility Center trips are included in this data

8 8

4 10/26/2016

Dial-a-Ride – Regional

FY16Q4 Performance Indicator Target Pilot for FY16 Q1 FY17 Q1 June only One-Way Trips -- 301 N/A 28,062

On-Time Performance ≥ 95% 96% N/A 97%

Complaints Per 1,000 Trips ≤ 1.5 .01 N/A 1.07

Cost Per Trip -- $39.44 N/A $44.55

9 9

Other Accessibility Services

Performance Indicator FY16 Q4 FY 16 Q1 FY17 Q1 RideChoice Trips 11,939 12,452 12,019 Cost Per Trip $10.95 $11.06 $11.23 Platinum Pass Trips 32,896 31,738 30,826 Cost Per Trip $0.74 $0.71 $0.74 ADA Applicants 1,166 976 1,328 Unconditional 71% 66% 72% Conditional 18% 21% 17% Temporary 9% 10% 9% Denials 2% 3% 2% 10

5 10/26/2016

Accessible Transit Services Highlights • Issued RFP for the next paratransit contract. – Proposals are under review. – Award anticipated in early 2017. – Service under the next contract begins July 1, 2017. • VM Accessibility Advisory Group now meeting regularly to advise agency on all accessibility-related matters. • Working with Phoenix Transit Department to update Valley Metro bus and light rail accessibility policies. • Completed upgrade of all Platinum Pass and Reduced Fare Card production technology. 11

Capital Planning and Development FY17 Q1 Report

6 10/26/2016

Future Transit Corridors

Gilbert Road Extension Project Phase Current Phase Status Complete Complete 2018 FTA Project Summer/Fall . Host ground breaking event on October 15th at Main Street/Stapley Development 2016 Drive . Begin construction

7 10/26/2016

Tempe Streetcar

Project Phase Current Phase Status Complete Complete 2020 FTA Project Summer/Fall . Completed Preliminary Engineering effort in preparation for final design Development 2016 . Evaluating proposals from vehicle manufacturers, final design firms, and public artists . Awaiting qualification responses from contractors for CMAR contract . Continue coordination with PMOC assigned to project

Capitol/I-10 West LRT Extension Project Phase Current Phase Status Complete Complete 2023 (Phase I) Environmental Spring . ADOT, County and City coordination on-going Assessment (EA) 2017 . Revising the EA based on comments received from the FTA and construction phasing . Anticipate public review of EA by Early 2017

8 10/26/2016

Northwest LRT Extension Phase II

Project Phase Current Phase Status Complete Complete

2023 Environmental/ Summer . Completed project definition Preliminary 2017 . Continue coordination with ADOT & MAG Engineering . Anticipate submittal of EA to FTA for review Spring 2017

South Central LRT

Project Complete Current Phase Phase Complete

2023 Project Development Fall 2017

Status

. Prepared project Finance Plan and updated the bus and rail fleet management fleet plans and Operations and Maintenance Plan . Submitted materials to FTA for New Starts Review and consideration of inclusion in FY18 President’s budget . Supported USDOT LadderSTEP Equitable Transit Oriented Development (eTOD) Workshop . Continuing with Preliminary Engineering activities 18

9 10/26/2016

West Phoenix/Central Glendale Project Phase Current Phase Status Complete Complete 2026 Alternatives End 2016 . Identified a 7-mile leading alternative approved by Glendale City Analysis Council . Continue to identify options to cross I-17, transition into Downtown Glendale and crossing Grand Avenue.

Fiesta-Downtown Chandler Transit Corridor Study Project Current Phase Phase Complete Complete 2017 Feasibility Study Spring 2017

Status • Completed scenario evaluation phase • Selected Dobson Road - Southern Avenue - Country Club Road as the recommended HCT scenario • Conducted preliminary for a potential Phase 1 LRT option, including conceptual designs, travel forecasting, and capital cost estimates

10 10/26/2016

OMC Expansion Study Project Phase Current Phase Status Complete Complete . Developing an Early Action Plan for expanding the OMC before the delivery of the 6 streetcar vehicles and 11 LRVs in 2019 2017 Early Action Plan End 2016 . Identifying the vehicle delivery schedule for each planned high- capacity transit corridor.

Northwest LRT Feasibility Study

Project Current Phase Phase Complete Complete 2034 Feasibility Study Fall 2017

Status • Study beginning Fall 2016

11 10/26/2016

I-10/I-17 Direct Access Bus Ramp Project Complete Current Phase Phase Complete TBD Planning Fall 2017

Status . Revising Categorical Exclusion . Revising Interstate Change of Access Methods and Assumptions document for ADOT, FWHA, and Phoenix approval . Coordinating with ADOT and Phoenix on next steps

Benefits

• Early action for the Capitol/I-10 West Light Rail Extension project provides a near-term benefit for west valley bus commuters’ travel time to downtown Phoenix, including better on-time performance during heavy peak hour congestion along I-10. • Provides near-term traffic benefits along the I-10 in the downtown area. • Will efficiently convert to integrate future light rail, saving time and money. 23

Design and Construction FY17 Q1 Report

12 10/26/2016

50th Street Light Rail Station

50th Street Station

50th Street Light Rail Station

Project Phase Current Phase Status Complete Complete 2019 Conceptual Ongoing . Design, Artist and CMAR working together Engineering . Refined designs being explored (60% design . Incorporation of Innovation Games concepts complete)

13 10/26/2016

50th Street Project Progress

• Procurement – Public Art Services • Board Approval and NTP July 22, 2016 – Design Consultant • Board Approval and NTP August 12, 2016 50th Street Station Announcement Event – CM@Risk Construction Services • Board Approval and NTP September 6, 2016

50th Street Project Cost and Budget

Description Budget Expended % Forecast ($M) ($M) Earned ($M)

Contracted Services $ 19.0 $ 0.0 0% $ 19.0 Right of Way $ 0.7 $ 0.0 0% $ 0.7 Professional Services $ 3.3 $ 0.2 0% $ 3.3 Total $ 23.0 $ 0.3 1.2% $ 23.0

14 10/26/2016

50th Street Project Contingency

Description Dollars ($M) Allocated Contingency $ 0.1

Executed Change Orders $ -

Unallocated Contingency $ 3.6

Total Project Contingency Remaining $ 3.7

50th Street Project Schedule Description Baseline Current % Complete

Construction 03/05/19 03/12/19 0%

Utilities 05/01/18 02/05/18 0%

Right of Way 10/13/17 12/28/17 0%

Public Art 7/18/18 7/18/18 0%

Design/Mgt. 7/03/19 7/10/19 3%

Test and Startup 05/03/19 05/10/19 0% 30

15 10/26/2016

Gilbert Road Extension (GRE) Project Progress •Design – GMP 1 Final Plans Delivered – GMP 2 90% Plans Delivered

GRE Project Cost and Budget

Current Expended Forecast Description %Earned Budget ($M) ($M) Contracted Services $105.4 $8.8 8.3% $105.4 Light Rail Vehicles $20.1 $0.0 0.0% $20.1 Right of Way $14.8 $0.2 1.7% $14.8 Professional Services $12.4 $3.1 25.1% $12.4

Total $152.7 $12.1 7.9% $152.7

16 10/26/2016

GRE Project Contingency Description Dollars ($M) Allocated Contingency $12.2

Executed Change Orders $2.4

Allocated Contingency Remaining $12.8

Unallocated Contingency $10.3

Total Project Contingency Remaining $23.1 33

GRE Project Schedule

Description Baseline Current % Complete

Construction 09/17/18 09/17/18 1.0% Utilities 08/15/18 08/15/18 1.0% Right of Way 12/25/17 11/10/17 15.0% Public Art 07/19/18 07/19/18 5.0% Vehicles 09/14/18 12/31/19 0.0% Design/Mgt. 03/16/19 03/16/19 10.0% Test and Startup 11/19/18 11/19/18 0.0% 34

17 10/26/2016

Tempe Streetcar Project Progress

• Procurement – RFPs put out Public Art Services, Design Consultant and CM@Risk Construction Services

Tempe Streetcar Project Schedule

Description Baseline Current % Complete Construction 12/26/19 12/26/19 0.0% Utilities 12/10/18 12/10/18 0.0% Right of Way 7/31/18 7/31/18 0.0% Public Art 8/30/19 8/30/19 0.0% Vehicles 2/20/20 2/20/20 0.0% Design/Mgt. 5/19/21 5/19/21 1.0%

Test and Startup 8/20/20 8/20/20 0.0% 36

18 10/26/2016

Tempe Streetcar Project Cost and Budget Description Budget Expended % Earned Forecast ($M) ($M) ($M) Contracted Services $ 117.3 $ - 0.0% $ 117.3 Vehicles $ 31.1 $ - 0.0% $ 31.1 Right of Way $ 0.5 $ - 0.0% $ 0.5 Professional Services $ 37.2 $ 0.6 1.7% $ 37.2 Total $ 186.1 $ 0.6 0.3% $ 186.1

Tempe Streetcar Project Contingency Description Dollars ($M) Allocated Contingency $ 11.4

Executed Change Orders $ 0

Allocated Contingency Remaining $ 11.4

Unallocated Contingency $ 30.1

Total Project Contingency Remaining $ 41.5

19 10/26/2016

Communication & Marketing FY17 Q1 Report

November 2016

Communications Update • Supported Cartwright School District computer donation PR • Conducted annual Safe Place training w/ Rail Operations – Preparing for expansion to bus • Coordinating with Miller Coors on New Year’s Eve free rides – Introducing partnership with Uber 2

1 10/26/2016

Community Relations Update • Launched business assistance program for Gilbert Rd. Extension • Initiated outreach for Cool Transit STUFF 3rd grade art contest – Winning entries build 2017 calendar • Supported 50th St. Station announcement • Conducted ASU/back to school marketing and outreach

– Took part in move-in & safety events 3

Commute Solutions Update • Received 74 Clean Air Campaign award nominations • Launched Rideshare Month pledge & Commuter Challenge – 482 pledges; 30% new to ShareTheRide – 35 Commuter Challenge teams created • Conducted telework promotion • Executing Platinum Pass promotion

to employers 4

2 10/26/2016

Marketing Update • Produced Oct. 2016 Transit Book – Supported marketing of Phoenix T2050 service improvements • Received contract award for Website Redesign (to Steer Davies Gleave) • Produced alternative mode campaign creative • Updated SHOP ON business assistance campaign creative 5

3 10/26/2016

Finance Division FY17 Q1 Report

November 2016

Valley Metro RPTA Operating Results – Q1 RPTA Budget vs. Actual Report $ Millions For the quarter ending September 30, 2016 1st Quarter Year to Date Variance Variance Operations Expenditures Budget Actual (Unfav.) Budget Actual (Unfav.) Fixed Route Bus 22.1 21.6 0.5 22.1 21.6 0.5 Paratransit 8.0 7.7 0.3 8.0 7.7 0.3 Vanpool 0.2 0.2 0.0 0.2 0.2 0.0 Regional Services 2.9 2.0 0.9 2.9 2.0 0.9 Planning 0.6 0.3 0.3 0.6 0.3 0.3 Administration 0.6 0.5 0.1 0.6 0.5 0.1 METRO Rail (Salary, Fringe, OH) 4.4 4.1 0.3 4.4 4.1 0.3 Total Operations Expenditures 38.8 36.5 2.4 38.8 36.5 2.4

1 10/26/2016

Open Positions Status

Valley Metro Integrated Agency FY 2017 Adopted Positions ‐ Status Update FY16 ‐ Q4 FY16 ‐ Q1 Jun Open Sep Open Operations and Maintenance 18 22 Human Resources 2 2 Capital and Service Development 0 2 Safety, Security and Quality Assurance 0 0 Information Technology 3 3 Communication & Marketing 1 1 Finance 1 2 Executive 1 5 Legal 1 2 Total Open Positions 27 39 9% 12%

Total Budgeted Positions 312 317 3

Valley Metro RPTA Capital Results – Q1

RPTA Budget vs. Actual Report $ Millions For the quarter ending September 30, 2016 1st Quarter Year to Date Variance Variance Capital Expenditures Budget Actual (Unfav.) Budget Actual (Unfav.) Bus Purchases Valley Metro 6.3 4.3 2.0 6.3 4.3 2.0 Lead Agency 2.0 0.0 2.0 2.0 0.0 2.0

Paratransit Vehicles Lead Agency 0.1 0.0 0.1 0.1 0.0 0.1 Vanpool Vehicles 0.8 0.8 0.0 0.8 0.8 0.0 Other Capital 3.6 0.1 3.5 3.6 0.1 3.5 METRO Rail 20.9 13.9 7.0 20.9 13.9 7.0 Total Capital Expenditures 33.6 19.1 14.6 33.6 19.1 14.6

2 10/26/2016

Valley Metro Rail Operating Results – Q1

VMR Budget vs. Actual Report $ Millions For the quarter ending September 30, 2016 1st Quarter Year to Date Variance Variance Operations Expenditures Budget Actual (Unfav.) Budget Actual (Unfav.) Rail Operations 11.2 9.4 1.8 11.2 9.4 1.8 Future Project Development 2.7 2.3 0.4 2.7 2.3 0.4 Agency Operating 0.3 0.2 0.1 0.3 0.2 0.1 Total Operating Activities 14.2 11.9 2.3 14.2 11.9 2.3

Average Rail Fare FY 2016 History / FY 2017 1st Quarter Average Fare - 12 Months Rolling by Quarter $1.00

$0.95 Budget $0.92 $0.90 $0.86 $0.88 $0.85 $0.86 $0.85 $0.85 $0.80 $0.75 $0.70 $0.65 $0.60 $0.55 $0.50 FY16‐Q1 FY16‐Q2 FY16‐Q3 FY16‐Q4 FY17‐Q1 Q1 Q1 Fare Revenue Budget $3,724,000 Fare Recovery Budget 33.2% Fare Revenue Collected $3,295,000 Fare Recovery Actual 35.0% Variance ($429,000) 6

3 10/26/2016

Valley Metro Rail Capital Results – Q1

VMR Budget vs. Actual Report $ Millions For the quarter ending September 30, 2016 1st Quarter Year to Date Variance Variance Capital Expenditures Budget Actual (Unfav.) Budget Actual (Unfav.)

Rail Projects Central Mesa 0.5 0.1 0.4 0.5 0.1 0.4 Northwest Extension PH1 1.1 0.2 0.9 1.1 0.2 0.9 Tempe Streetcar 1.0 0.2 0.8 1.0 0.2 0.8 Gilbert Rd 9.0 1.7 7.3 9.0 1.7 7.3 50th St LRT Station 1.6 0.1 1.5 1.6 0.1 1.5 South Central 0.0 0.0 0.0 0.0 0.0 0.0 System‐wide Improvements 2.6 0.2 2.4 2.6 0.2 2.4

Total Capital 15.7 2.5 13.2 15.7 2.5 13.2

DATE AGENDA ITEM 13 November 2, 2016

SUBJECT Travel, Expenditures and Task Order Changes

PURPOSE The monthly travel and expenditures are presented for information.

BACKGROUND/DISCUSSION/CONSIDERATION None

COST AND BUDGET None

COMMITTEE PROCESS None

RECOMMENDATION This item is presented for information only.

CONTACT Paul Hodgins Interim Chief Financial Officer 602-262-7433 [email protected]

ATTACHMENT Valley Metro Travel Reimbursement Report Valley Metro RPTA and Valley Metro Rail Monthly Accounts Payable over $25,000

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 85003 • 602-262-7433 Valley Metro Regional Public Transportation Authority Monthly AP Payments over $25,000 August 21, 2016 - September 20, 2016

Document Effective Transaction Number Name Transaction Description Date Amount 20160826W004 FirstGroup America, Inc. July 2016 Fixed Route Bus Service 8/26/2016 4,781,910.26 35688 City of Tempe FY16 East Valley Bus Transit Service Recon 8/26/2016 1,182,788.00 20160902W004 Gillig, LLC 6751 Gillig 2016 Low Floor CNG Transit Bus, 40 Foot 9/2/2016 534,149.55 20160902W004 Gillig, LLC 6752 Gillig 2016 Low Floor CNG Transit Bus, 40 Foot 9/2/2016 534,149.55 20160902W004 Gillig, LLC 6753 Gillig 2016 Low Floor CNG Transit Bus, 40 Foot 9/2/2016 534,149.55 20160902W004 Gillig, LLC 6754 Gillig Low Floor CNG Transit Bus, 40 Foot 9/2/2016 534,149.55 20160902W004 Gillig, LLC 6755 Gillig 2016 Low Floor CNG Transit Bus, 40 Foot 9/2/2016 534,149.55 20160902W004 Gillig, LLC 6756 Gillig 2016 Low Floor CNG Transit Bus, 40 Foot 9/2/2016 534,149.55 20160902W004 Gillig, LLC 6757 Gillig Low Floor CNG Transit Bus, 40 Foot 9/2/2016 534,149.55 20160902W004 Gillig, LLC 6758 Gillig 2016 Low Floor CNG Transit Bus, 40 Foot 9/2/2016 534,149.55 35718 City of Phoenix Transit Dept. FY16 East Valley Bus Transit Service Recon 8/31/2016 484,087.00 20160916W ADP PPE 9/11/16 Payroll ADP Wages Payable 9/16/2016 432,253.39 20160902W7 ADP PPE 8/28/16 ADP Wages Payable 9/2/2016 419,225.99 35722 City of Mesa FY16 East Valley Bus Transit Service Recon 8/31/2016 342,953.00 20160826W United Healthcare Sept 2016 Employee Dental, Medical and Vision Coverage 8/26/2016 296,043.49 35713 City of Scottsdale - Remittance Processing FY16 East Valley Bus Transit Service Recon 8/31/2016 252,752.00 20160916W ADP PPE 9/11/16 Payroll Taxes and Garnishments 9/16/2016 184,291.76 20160902W7 ADP PPE 8/28/16 ADP Payroll Taxes, Garnishments 9/2/2016 181,205.89 20160916W001 ASRS PPE 9/11/16 ASRS 9/16/2016 157,781.69 20160902W8 ASRS PPE 8/28/16 ASRS 9/2/2016 153,530.95 35745 Scheidt & Bachmann Fare Box Software Support & Maintenance Year 3 - July 2016-June 2017 9/8/2016 147,721.20 20160902W003 Total Transit Enterprises, LLC July 2016 Zoom (Avondale) Bus Service 9/2/2016 125,993.49 35707 Xerox Transport Solutions, Inc. FY17 Hardware Support Services Bus Maintenance System 8/26/2016 108,537.00 35714 City of Tempe FY16 East Valley Bus Transit Service Recon 8/31/2016 97,412.00 20160902W003 Total Transit Enterprises, LLC July 2016 Vee Quiva Bus Service and Preventive Maintenance 9/2/2016 78,385.60 35738 Trapeze Software Group Trapeze ATIS Agent 7/1/2016 - 6/30/2017 9/8/2016 58,863.98 20160826W002 Second Generation, Inc. dba Ajo TransportatJuly 2016 Transportation Services Rural Connector 8/26/2016 50,177.67 20160831W003 City of Mesa August 2016 CNG Fuel Exp 8/31/2016 47,661.28 20160909W001 CopperPoint Mutual Insurance Company Sept. 2016 Call Center/Mobility Center Rent 9/9/2016 46,829.28 35790 Remix Software, Inc. Remix Enterprise Licenses - 1 Year - 9/1/16- 8/31/17 9/14/2016 45,800.00 35689 vRide, Inc. June 2016 Vanpool Services 8/26/2016 44,391.85 35749 C.A.R.E Evaluators, Inc. Mobility Center ADA Evaluations July 2016 9/8/2016 43,986.55 35688 City of Tempe FY16 East Valley Dial-A-Ride Recon 8/26/2016 42,018.00 35753 Creative Bus Sales dba Arizona Bus Sales 47514 Transit Works 2016 Transit Wagon XLT Silver 9/8/2016 40,276.40 35753 Creative Bus Sales dba Arizona Bus Sales 47515 Transit Works 2016 Transit Wagon XLT Silver 9/8/2016 40,106.40 35753 Creative Bus Sales dba Arizona Bus Sales 47520 Transit Works 2016 Transit Wagon XLT Silver 9/8/2016 40,106.40 35753 Creative Bus Sales dba Arizona Bus Sales 47512 Transit Works 2016 Transit Wagon XLT Silver 9/8/2016 39,792.24 35753 Creative Bus Sales dba Arizona Bus Sales 47509 Transit Works 2016 Transit Wagon XLT Silver 9/8/2016 39,452.24 35753 Creative Bus Sales dba Arizona Bus Sales 47513 Transit Works 2016 Transit Wagon XLT Silver 9/8/2016 39,282.24 35713 City of Scottsdale - Remittance Processing FY16 East Valley Dial-A-Ride Recon 8/31/2016 31,412.00 20160831W005 SRP August 2016 Utilities 8/31/2016 30,649.87 9152016 Wells Fargo Bank August 2016 Wells Fargo Credit Card Purchases 9/15/2016 25,457.37 14,406,332.88 Valley Metro Rail, Inc. Monthly AP Payments over $25,000 August 21, 2016 - September 20, 2016

Effective Transaction Document Number Name Transaction Description Date Amount 20160902W003 Alternate Concepts Inc. Transportation Services - ACI - 6/25-7/29/16 9/2/2016 933,014.90 20160909W001 Jacobs Engineering July 2016 GRE Design Services 9/9/2016 482,311.70 20160826W003 Allied Barton Security Services Fare Inspection and Security Services July 2016 8/26/2016 307,553.37 20160831W006 APS August 2016 Utilities 8/31/2016 230,803.08 27249 RPTA FY15-16 IT Infrastructure VMR Capital Asset Contribution to RPTA 9/8/2016 192,298.49 20160902W002 DMS - Facility Services, Inc. Facilities and LRV Cleaning Services July 2016 9/2/2016 151,163.74 20160909W004 PB-Wong Joint Venture July 2016 Task 4 Project Management Construction Management 9/9/2016 103,603.97 20160831W010 SRP August 2016 Utilities 8/31/2016 98,593.05 20160909W004 PB-Wong Joint Venture July 2016 Task 19A 9/9/2016 94,239.68 27242 Parsons Transportation Group Inc. July/Aug 2016 Consulting Services for SCADA Upgrade 9/8/2016 36,407.00 20160831W005 City of Mesa August 2016 Utilities 8/31/2016 34,546.80 27214 City of Phoenix Aug 2016 Fare Handling Fee 9/8/2016 33,400.00 20160916W PB-Wong Joint Venture 6/8/15-5/31/16 Task 2 & 20 PMCM 9/16/2016 32,228.55 027145 Hanning & Kahl LP 12 Transponders with Plugs TWC 8/25/2016 30,232.00 27186 United Right-of-Way Facilities Landskeeping Services July 2016 8/31/2016 28,927.57 2,789,323.90 Valley Metro Travel Reimbursement Report For Travel Completion Dates July 26, 2016 through August 25, 2016

Other Job Title Purpose of Travel Location Dates Traveled Total Travel Cost Airfare Lodging Meals Misc. Transport VMWare VMWorld Annual Las Vegas, NV 8/27/16 - 9/1/2016 $1,194.40 $0.00 $159.20 $683.20 $352.00 $0.00 Administrator Conference Resident FTA Transit New York, NY 8/29/16 - 9/1/16 $1,451.41 $452.20 $37.02 $737.19 $225.00 $0.00 Engineer Construction Director of FTA Transit New York, NY 8/26/16 - 9/1/16 $1,392.17 $371.20 $26.00 $725.97 $225.00 $44.00 * Planning Construction Manager, APTA Annual Los Angeles, CA 9/9/16 - 9/13/16 $1,023.45 $152.95 $85.11 $561.39 $224.00 $0.00 Accessible Conference Transit

Report reflects Out of State (AZ) Travel * Airport Parking Valley Metro Regional Public Transportation Authority Monthly AP Payments over $25,000 September 21, 2016 - October 20, 2016

Effective Transaction Document NumberName Transaction Description Date Amount 20160923W005 FirstGroup America, Inc. Express, Circulator, Local, Link, Flash Routes - August 2016 9/23/2016 5,119,701.76 20160930W003 City of Phoenix Sept 2016 FR Bus Service, DAR, FR Service Ops, Fare Handling Fee 9/30/2016 2,197,669.80 20171007W003 Total Transit Enterprises, LLC July 2016 NW Valley ParaTransit/Mobility Center Services 10/7/2016 442,904.57 20160930W ADP PPE 9/25/16 Payroll ADP Wages Payable 9/30/2016 440,715.32 20161014W005 ADP PPE 10-9-16 ADP Wages Payable 10/14/2016 420,328.82 20160930W009 United Healthcare Oct 2016 Employee Dental, Medical, Vision Coverage 9/30/2016 301,260.70 20160930W ADP PPE 9/25/16 Payroll Taxes and Garnishments 9/30/2016 189,986.66 20171007W003 Total Transit Enterprises, LLC July 2016 East Valley ParaTransit Services 10/7/2016 186,107.49 20161014W005 ADP PPE 10-9-16 ADP Payroll Taxes, Garnishments 10/14/2016 177,093.67 20160930W001 ASRS PPE 9/25/16 ASRS 9/30/2016 155,920.45 20161014W006 ASRS PPE 10-9-16 ASRS 10/14/2016 154,171.05 20160930W008 Total Transit Enterprises, LLC Aug 2016 Avondale Zoom Run 9/30/2016 138,423.98 20160930W008 Total Transit Enterprises, LLC Aug 2016 Glendale Express Run 9/30/2016 88,588.62 20160930W008 Total Transit Enterprises, LLC Aug 2016 Vee Quiva Run 9/30/2016 77,686.10 35915 Moses, Inc. 8/1/16-9/30/16 Marketing and Advertising 10/12/2016 58,767.01 35832 Creative Bus Sales dba Arizona Bus Sales 47528 2016 MR Transit Wagon XLT 9/29/2016 56,197.38 35852 vRide, Inc. July 2016 Van Pool Services 9/29/2016 55,889.22 20160930W005 Second Generation, Inc. dba Ajo Transpo Aug 2016 Rural Connector Route 9/30/2016 55,361.31 35904 World Wide Technology Cisco Routers for Network Expansion 10/12/2016 47,687.50 20161007W002 CopperPoint Mutual Insurance Company Oct 2016 Mobility Center Rent 10/7/2016 46,829.28 35864 CHK America, Inc Bus Kiosk Poster Maps 10/6/2016 46,500.00 35832 Creative Bus Sales dba Arizona Bus Sales 47523 2016 Transit Wagon XLT 9/29/2016 40,616.40 35832 Creative Bus Sales dba Arizona Bus Sales 47527J 2016 Transit Wagon XLT 9/29/2016 40,616.40 35832 Creative Bus Sales dba Arizona Bus Sales 47526 2016 Transit Wagon XLT 9/29/2016 40,446.40 35832 Creative Bus Sales dba Arizona Bus Sales 47525 2016 Transit Wagon XLT 9/29/2016 40,361.40 35832 Creative Bus Sales dba Arizona Bus Sales 47517 2016 Transit Wagon XLT 9/29/2016 40,361.40 35832 Creative Bus Sales dba Arizona Bus Sales 47521 2016 Transit Wagon XLT 9/29/2016 40,191.40 35832 Creative Bus Sales dba Arizona Bus Sales 47522 2016 Transit Wagon XLT 9/29/2016 40,106.40 35832 Creative Bus Sales dba Arizona Bus Sales 47524J 2016 Transit Wagon XLT 9/29/2016 40,106.40 35832 Creative Bus Sales dba Arizona Bus Sales 47518 2016 Transit Wagon XLT 9/29/2016 40,106.40 35832 Creative Bus Sales dba Arizona Bus Sales 47519 2016 Transit Wagon XLT 9/29/2016 40,106.40 35832 Creative Bus Sales dba Arizona Bus Sales 47516 2016 Transit Wagon XLT 9/29/2016 40,106.40 20160930W12 City of Mesa Sept 2016 CNG Fuel Exp 9/30/2016 39,928.62 35832 Creative Bus Sales dba Arizona Bus Sales 47511 2016 Transit Wagon XLT 9/29/2016 39,622.24 35832 Creative Bus Sales dba Arizona Bus Sales 47510 2016 Transit Wagon XLT 9/29/2016 39,367.24 35937 C.A.R.E Evaluators, Inc. Mobility Center ADA Evaluations Aug. 2016 10/20/2016 39,236.16 20160930W004 Enterprise Technology Services Aug 2016 IT Services Consultant 9/30/2016 34,629.58 20160930W16 SRP September 2016 Utilities 9/30/2016 31,492.66 11,125,192.59 Valley Metro Rail, Inc. Monthly AP Payments over $25,000 September 21, 2016 - October 20, 2016

Document Effective Transaction Number Name Transaction Description Date Amount

20160923W003 Stacy and Witbeck-Sundt JV GRE July 2016 GRE Phase 1 PreCon 9/23/2016 803,751.41 20160930W Alternate Concepts Inc. Aug 2016 Transportation Services 9/30/2016 751,315.40 20160930W010 APS September 2016 Utilities 9/30/2016 232,578.90 27388 Stephen R. Banta Settlement Agreement on Annuity Premium 10/7/2016 180,000.00 027468 Penn Machine Company, LLC Tires for LRV's 10/18/2016 160,000.00 20160923W002 DMS - Facility Services, Inc. Aug 2016 Facility and LRV Cleaning Services 9/23/2016 151,163.74 20160930W002 City of Mesa-Central Mesa Billings 6/2/16-7/31/16 GRE Costs 9/30/2016 130,083.94 20160923W004 USBC Real Estate LLC Oct 2016 101 Bldg Rent 9/23/2016 117,458.29 027403 City of Phoenix July-2015 - June 2016 RWC Charges 10/11/2016 112,952.42 20160930W028 SRP September 2016 Utilities 9/30/2016 100,773.47 20160923W002 DMS - Facility Services, Inc. Aug 2016 Facilities Maintenance Services 9/23/2016 53,327.25 27284 City of Phoenix Final FY 2016 Fare Handlinf Fee-True Up 9/21/2016 36,198.00 20160930W004 Scheidt & Bachmann Hand Held Ticket Validators 9/30/2016 33,774.60 20160930W014 City of Mesa September 2016 Utilities 9/30/2016 33,642.11 27373 United Right-of-Way Aug 2016 Facilities Landskeeping Services 9/28/2016 33,453.50 27343 City of Phoenix Sept 2016 Fare Handling Fee 9/28/2016 33,400.00 027478 Suns Legacy Partners, LLC Phoenix Suns Sponsorship (2016-2017 Season) to Bolster 10/18/2016 25,878.75 Ticket Partnership 2,989,751.78 Valley Metro Travel Reimbursement Report For Travel Completion Dates September 26, 2016 through October 25, 2016

Total Travel Other Job Title Purpose of Travel Location Dates Traveled Airfare Lodging Meals Misc. Cost Transport Chief Technology APTA Annual 1, 2 Officer Conference Los Angeles, CA 9/9/16-9/14/16 $1,578.33 $192.20 $294.65 $661.15 $325.33 $105.00 APTA Annual 1, 3 Interim CEO Conference Los Angeles, CA 9/10/16-9/13/16 $1,480.06 $192.96 $51.10 $969.00 $208.00 $59.00 Contracts and 1 Procurement APTA Annual Manager Conference Los Angeles, CA 9/9/16-9/13/16 $1,683.84 $159.95 $80.55 $1,104.68 $288.00 $50.66 Server Giagom Change Administrator Conference Austin, TX 9/21/16-9/23/16 $894.96 $322.70 $61.60 $415.16 $95.50 $0.00 Database Project Management 2 Administrator Training Course San Diego, CA 9/20/16-9/25/16 $1,574.37 $226.20 $156.57 $789.60 $352.00 $50.00 Server Cybersecurity 2 Administrator Training Idaho Falls, ID 9/25/16-9/30/16 $1,280.10 $314.20 $247.55 $502.85 $165.50 $50.00 Manager, Capital Rail-Volution 1 Development Conference San Francisco, CA 10/9/16-10/12/16 $1,675.22 $151.20 $10.00 $1,255.02 $223.00 $36.00 Rail-Volution City of Tempe Conference San Francisco, CA 10/9/16-10/12/16 $1,786.18 $165.96 $106.20 $1,255.02 $259.00 $0.00 Interim CEO Rail-Volution 1 Conference San Francisco, CA 10/9/16-10/12/16 $1,777.98 $157.96 $96.00 $1,255.02 $225.00 $44.00 Community Relations Rail-Volution Programmer Conference San Francisco, CA 10/9/16-10/12/16 $1,738.19 $247.20 $46.97 $1,255.02 $189.00 $0.00 Manager Budget and Operations TFLEx Workshop Portland, OR 10/9/12-10/11/16 $816.89 $216.20 $20.85 $435.84 $144.00 $0.00 SWTA 2016 Transit Marketing Program Marketing Coordinator Conference Baton Rouge, LA 9/25/16-9/27/16 $862.02 $443.20 $0.00 $271.32 $147.50 $0.00 Special Assistant to Rail-Volution the CEO Conference San Francisco, CA 10/8/16-10/12/16 $1,808.47 $177.08 $130.63 $1,201.76 $299.00 $0.00

Report reflects Out of State (AZ) Travel 1 Airport Parking 2 Luggage 3 Early Check-In

DATE AGENDA ITEM 14 November 2, 2016

SUBJECT Future Agenda Items Request and Report on Current Events

PURPOSE Chairs Williams and Mitchell will request future agenda items from members, and members may provide a report on current events.

BACKGROUND/DISCUSSION/CONSIDERATION None

COST AND BUDGET None

COMMITTEE PROCESS None

RECOMMENDATION This item is presented for information only.

CONTACT Scott Smith Interim Chief Executive Officer 602-262-7433 [email protected]

ATTACHMENT Pending Items Request

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 85003 • 602-262-7433

Pending Items Request

Item Requested Date Requested Planned Follow-up Date

November 2, 2016

Board of Directors Thursday, November 10, 2016 Lake Powell Conference Room 101 N. 1st Avenue, 10th Floor 11:15 a.m.

Action Recommended

1. Public Comment on Agenda Action Items (blue card) 1. For information

2. Minutes 2. For action

Minutes from the September 22, 2016 Board meeting are presented for approval.

CONSENT AGENDA 3A. Consulting Services for Project Implementation of SCADA 3A. For action Upgrade Contract Award

Staff will request that the Board of Directors authorize the Interim CEO to execute a contract with Parsons Transportation Group, Inc. for Consulting Services for the Project Implementation of the SCADA Upgrade in an amount not to exceed $715,226 and to establish a contract change contingency of $71,523 that is included in the overall budget established for the project.

3B. Light Rail Vehicle (LRV) Gearbox/Axle Overhaul Contract 3B. For action Award

Staff will request that the Board of Directors authorize the Interim CEO to execute a 3-year contract with UTCRAS, Inc. to complete a gearbox/axle overall program for the light rail vehicles in an amount not to exceed $1,631,106 for the period January 2017 thru December 2019, and to establish a contract change contingency of $163,111 that is included within the overall budget established for the project.

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 602-262-7433

3C. Light Rail Vehicle (LRV) Traction Motor Overhaul Contract 3C. For action Award

Staff recommends that the Board of Directors authorize the Interim CEO to execute a 3-year contract with Traction Systems, Inc. to complete a traction motor overall program for the light rail vehicles in an amount not to exceed $731,685 for the period November 2016 thru October 2019, and to establish a contract change contingency of $73,169 that is included in the overall budget established for the project.

3D. 50th Street Light Rail Transit (LRT) Station Third Party Utility 3D. For action Agreements

Staff recommends that the Board of Directors authorize the Interim CEO to sign Letters of Authorization with third party utility companies for their design and construction activities on the 50th Street LRT Station project for an amount not to exceed $2,119,765 and to authorize staff to hold $211,976 (10%) for use as a contingency for unforeseen circumstances.

3E. Easement agreement with the City of Phoenix and Cloquet 3E. For action Metrowest, LLC

Staff recommends that the Board of Directors authorize the Interim CEO to enter into an easement agreement involving the City of Phoenix and Cloquet Metrowest, LLC developers of Union at Roosevelt.

3F. Tempe Streetcar Public Art Services Contract Awards 3F. For action

Staff recommends that the Board of Directors authorize the Interim CEO to execute four contracts for the Tempe Streetcar Project for Public Art Services with Koryn Rolstad, Simon Donovan and Ben Olmstead, Mary Lucking and Bobby Zokaites for a total not to exceed $735,648 and $73,565 (10%) for contingency, to be retained by staff for unforeseen circumstances.

3G. Intergovernmental Agreements (IGAs) with the City of 3G. For action Phoenix for Federal Transit Administration Pass-Through Grants

Staff recommends that the Board of Directors authorize the Interim CEO to execute the IGAs with the City of Phoenix for the listed grants.

REGULAR AGENDA 4. 50th Street Light Rail (LRT) Station Addition – Potential 4. For information Impacts on Operations

Scott Smith, Interim CEO, will introduce Wulf Grote, Director, Capital and Service Development, who will provide information regarding the potential impact to LRT operations and auto traffic during and after the construction of the 50th Street LRT Station.

5. Contract Monitoring Security Services Update 5. For information

Scott Smith, Interim CEO, will introduce Adrian Ruiz, Director Safety Security and Quality Assurance, who will provide an update regarding the Contract Monitoring for Security Services.

6. Future Agenda Items Request and Report on Current Events 6. For information

Chair Mitchell will request future Board agenda items from members and members may provide a report on current events.

7. Next Meeting 7. For Information

The next meeting of the Board meeting is scheduled for Thursday, December 15, 2016 at 11:15 a.m.

DATE AGENDA ITEM 1 November 2, 2016

SUBJECT Public Comment on Agenda Action Items

BACKGROUND/DISCUSSION/CONSIDERATION None

COST AND BUDGET None

COMMITTEE PROCESS None

RECOMMENDATION This item is presented for information only.

CONTACT Scott Smith Interim Chief Executive Officer 602-262-7433 [email protected]

ATTACHMENT None

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 85003 • 602-262-7433

DATE AGENDA ITEM 2 November 2, 2016

Minutes of the Valley Metro Rail Board of Directors Thursday, September 22, 2016 12:15 p.m.

Meeting Participants Mayor Mark Mitchell, City of Tempe, Chair Vice Mayor Dennis Kavanaugh, City of Mesa, Vice Chair Councilmember Rick Heumann, City of Chandler Councilmember Lauren Tolmachoff, City of Glendale Thelda Williams, City of Phoenix,

Chair Mitchell called the meeting to order at 1:52 p.m.

1. Public Comment

Mr. Crowley said I found it fascinating last time that the finance person told me, well, we're going to be spending, what was it, $2.5 billion on the rail. And I went, well, gee, it's a 60/40 split. If we're doing two and a half billion on the rail over these next years, where is the three and three-quarters billion for the bus? Or is it just more whatever the big money thing is that's what the electeds have to go with.

I don't find that what you have been doing is coordinated with being multimodal. I don't see where some of the routing, which I will be speaking on at the action, is correcting what it should be. When I see that you're looking at corridors in the City of Phoenix is the one that's supporting it, why would they look anywhere but the City of Phoenix to get up there to Paradise Valley. And I go, that's what I'm talking about.

One of the routes that you're changing in April is the 70, 24th Street, goes all the way from Luke Air Force Base all the way to Lincoln Drive and 24th Street. It doesn't continue on into Scottsdale. Why? You know, that would be connectivity, but we don't do that.

And when I look at the routing we can go from Sunny Slope and follow the mountains and go around and get those parts of the equation and maybe go up 44th Street or 40th Street, or the actuality of it is where do you put a tunnel, because you've got three different objects you're supposed to be going for.

I also look back at the City of Phoenix turning easement back to 24th Street and Camelback because the rail wasn't going to be going there. But then that's also one of

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 602-262-7433

the thoughts on how to get there.

So I keep on trying to figure out what you've done with your planning in the past, how you're doing it together, and when you're going to figure out being multimodal. I'll talk to you on action next.

2. Minutes

Minutes from the August 18, 2016 Valley Metro Rail Board meeting were presented for approval.

IT WAS MOVED BY VICE MAYOR KAVANAUGH, SECONDED BY COUNCILMEMBER WILLIAMS AND UNANIMOUSLY CARRIED TO APPROVE THE AUGUST 18, 2016 VALLEY METRO RAIL BOARD MEETING MINUTES.

3. Public Comment on Agenda Action Items

Mr. Crowley said Blue Crowley citizen of Maricopa County in the State of Arizona. On the feasibility story study to the northeast, as I stated, you did have it going 24th Street and Camelback, but when did that go away. But then when you keep on going up north, you say, well, is it going to go down Glendale and Lincoln and go over to 44th Street. That isn't even considered, because it's a Phoenix study and why would they look in parasite Valley [sic]. Or why would parasite Valley even want to have any transit. As you know the only route that goes through is paid for specifically by the City of Phoenix, because Paradise Valley doesn't think that transit is something that should be in their community. Well, it's a regional thing and everybody's paying the money and it should be done right.

On to the Mesa alignment, I'll let you East Valley folks fight over that. As to the Gilbert light rail extension, the third party utility agreement, this is just more of the same. And I see people just doing money and such. And I have a problem with it keep on being so much. And I see all of that money going to rail and I go, where's my bus equivalent?

And as in the program management construction service contract award, what was it, fifty five million dollars. I look at the parts that they're doing and I go the Capitol I 10 rail transit corridor, I pointed out more than once you're stopping instead of going to a transit facility that you have inside the middle of the Deck Park. When you run a rail you could have done it to there also blending it with the EXPRESS that was supposed to be done there.

But then when it comes to putting the rail where you've planned for it, the billion and a half dollar toy, the Sky Train, the reason that exists is because you didn't know how to get it in Terminal 4 where you built the facility for rail that would have done better 2

connectivity between Tempe and Phoenix and the whole system. But then that's planning. And what you guys are doing.

And as I stated, we still need to get rid of the remnants of Mr. Banta when it comes to this system. And you need to be placing those ticket machines in other places than just the light rail and the Gilbert park and ride. Have a pleasant.

4. Consent Agenda

Chair Mitchell said the next item on our agenda is our consent agenda. All the items listed on the consent agenda for approval are considered with one motion. Is there a motion regarding the consent agenda items?

IT WAS MOVED BY VICE MAYOR KAVANAUGH, SECONDED BY COUNCILMEMBER WILLIAMS AND UNANIMOUSLY CARRIED TO APPROVE THE CONSENT AGENDA.

5. Program Management/Construction Management Services Contract Award

Chair Mitchell said the next item on our agenda is our Program Management and Construction Management Services Contract Award. Mr. Smith.

Mr. Smith said Mr. Chair, I'd like to introduce Wulf Grote who will discuss with you and present to you a proposal on an action item for the award of a contract for our program management/construction management services. Wulf.

Mr. Grote said Mr. Chair members of the Board, again, this is to seek your action to award a contract for our program management and construction management consultant.

Just by way of background, we have a current program management consultant. That was a five year contract. That five-year contract term is coming to an end. And we in that contract we programmed $25 million dollars over five year period for the efforts that went on there. And that was predominantly for the three projects that are listed on the screen. And that's where they focused most of their effort over the last five years.

The objectives of this program and this consultant contract is to provide as an extension of staff and many of these folks are located with us in our offices and really extend the staff that we're not able to have within our offices at this point in time.

Their function is to really work with us on the main rail corridor projects to manage the design and construction of those efforts. It's also very important that they have a good knowledge of the FTA processes and rules and procedures because those are all 3

integral to the projects that we do.

Going forward over the next five years looking at what kinds of things this consultant team will be engaged in, as you can see our list is expanding. We have five corridor projects that are going to be in various phases of design and construction. We have our 50th Street station that we're now starting final design on. We have an operations and maintenance facility that needs to be expanded because we're going to need more vehicles, and they need more facility to handle those vehicles. And then also there's other projects that are further out that they're also going to be providing some input into some of the engineering that's going on in those projects as well.

The contract that we're looking at here is a five year duration contract similar to the previous contract. Over the initial five years we expect a not to exceed amount of $55 million. That's roughly about $11 million per year. We also have opportunity within this contract for three one year extensions that we would come back to the Board with at a later date when we decide what the need is to keep going with this program and whether they're doing a good job for us, et cetera. But we anticipate that the annual amounts will be similar to what we're looking at here.

Just to give you some idea of why the increase in expenditure because we went from $25 million to $55 million, and obviously that's a big jump in funds. And I wanted to make it clear to you what's happening.

In the last five years we had eight miles of project activity. And in the next five years we're going to have twenty miles in various phases of development in these corridors. So, that's over a two and a half time increase in the number of miles.

In addition to that looking at the expenditures, in the last five years we had projects totaling just under $700 million. And now for the next five years, we have projects totaling close to $2.4 billion, which is more than three times the amount. And so we're looking at roughly a doubling of the consultant dollars that we're going to need to spend to manage this program.

We also have, when we advertised this contract, we also said in there that we would potentially be working with the RPTA on certain projects. At this point in time, there is no project envisioned. If we do have something in the future, we would come back to you all and there would have to be an agreement between the RPTA Board and the Valley Metro Rail Board to take on that work. And we would come to you at that time. But there is nothing today. I just wanted to make sure you're aware of that.

And as usual, we go through all the different media and different opportunities that we have to reach out to the consultant community to make sure that we get as much competition and involvement as possible. 4

In the end we ended up with three consultant consortiums. All three of those were responsive and qualified. And we did interview all three of those firms. That included Gannett Fleming, Hill International, and PB Wong Joint Venture were included.

We had a panel of seven members. Five of those members came from the Valley Metro. One of them came from Phoenix. And we also had one member from the City of Tempe on that panel with us.

So the recommendation that came out of the panel is to award this contract to Hill International and their consortium. Overall they have twelve firms. Their primary sub is CH2M. And they have a number of other firms to help for specialized needs.

The count for disadvantaged business enterprise, they have eight subconsultants that are helping there. And we also have nine firms that are small business enterprises. And some of them are the same. So it doesn't add up to twelve obviously. Some of them have both.

So just to make a couple notes about Hill. According to the engineering news record, they're one of the top ten largest construction management firms in the United States. So they obviously have a lot of experience in this area. They have also had several of the people on their team have worked with us at Valley Metro Rail. They also have been working with Sky Harbor. And then there's a number of other programs that they've had active involvement with.

And one of the most notable ones is the big program that's going on in Denver and their RTD Fastrack's program that has been adding a lot of miles over the last year to their program. So they definitely have a wealth of experience in other cities I didn't list here, but there's a lot of experience that they have in our field.

I do want to make note here, if I could, we do have some Hill International folks in the audience with us. And maybe if they could stand up just for a second. I do want to introduce Mike Smith who is the Senior Vice President for the western region for Hill. And I also would like to introduce Dan Heilig, who is our also a Senior Vice President and is going to be our program manager for this project, as well as, Bob Valerio, excuse me, who is also Vice President. He heads up the Phoenix office for Hill. Thanks for showing up today. I appreciate it.

Then, so finally, what we're looking for is a recommendation here that the Board of Directors authorize the interim CEO to execute a five year contract with three one year extension options with Hill International for program management/construction management services for an amount not to exceed $55 million for the initial five year base.

Councilmember Williams said thank you. This is a very large amount of money, very aggressive schedule. And what I'm requesting is that you report at least on an annual basis how much you spent, what it was spent for, and the progress that you're making, so that we have a status report at all times. We know where it's going, and what it's for, and we'll know the progress you're making.

Mr. Grote said certainly. We can do that.

Mr. Smith said and Councilmember Williams, if I might suggest, that would be a good time to talk about that is when we have budget discussions, because the annual we're looking at the budget coming up and it would be a good time to review that which has been done and the status of the contract.

So we'll put that on our tickler to say that as we are preparing that, we'll also prepare an analysis of what's been done, the project status, how it's been done, so we can give a better foundation and you a better idea of what's coming up in the next year.

Councilmember Williams said I appreciate it. Thank you.

Chair Mitchell said are there any other questions? I am looking for a motion regarding the authorization for the interim CEO to execute a five year contract with three one year extension options with Hill International.

IT WAS MOVED BY COUNCILMEMBER WILLIAMS, SECONDED BY VICE MAYOR KAVANAUGH AND UNANIMOUSLY CARRIED TO AUTHORIZE THE INTERIM CEO TO EXECUTE A FIVE-YEAR CONTRACT WITH THREE, ONE-YEAR EXTENSION OPTIONS WITH HILL INTERNATIONAL, INC., FOR PROGRAM MANAGEMENT/CONSTRUCTION MANAGEMENT SERVICES FOR AN AMOUNT NOT-TO-EXCEED $55 MILLION FOR THE INITIAL FIVE-YEAR BASE.

6. Future Agenda Items Request and Report on Current Events

Chair Mitchell said the next item on our agenda is our Future Agenda Items and Report on Current Events. Anybody have anything? Seeing none, our next meeting is November 10 here at 11:15. We are adjourned.

With no further discussion the meeting adjourned at 2:08 p.m.

DATE AGENDA ITEM 3A November 2, 2016

SUBJECT Consulting Services for Project Implementation of SCADA Upgrade Contract Award

PURPOSE To request authorization for the Interim Chief Executive Officer (CEO) to execute a contract with Parsons Transportation Group, Inc. for Consulting Services for the Project Implementation of the SCADA Upgrade in an amount not to exceed $715,226 and to establish a contract change contingency of $71,523 that is included in the overall budget established for the project.

BACKGROUND/DISCUSSION/CONSIDERATION Valley Metro currently uses a Supervisory Control and Data Acquisition (SCADA) system in its Rail Operations & Control Center (OCC). It is a central operating system that provides control of the light rail vehicles and other equipment along the rail alignment. With the addition of the Central Mesa Extension, it became evident to the engineers that the present SCADA database was not designed with an expandable platform. Therefore, the system is in need of an upgrade to a more robust system that will allow for future expansions. Currently a separate Request for Proposal has been issued to upgrade the current SCADA system under an expedited basis because of the need to deploy a new control center by December 31, 2017.

Valley Metro is in need of a consultant that can provide the lowest risk and most expeditious option for the execution of the work identified in the scope of services in order to manage the implementation of the SCADA upgrade project. Valley Metro seeks to contract with a qualified and experienced consultant with the background and technical expertise to support the design, installation, testing and commissioning of a new SCADA system.

In July 2016, Valley Metro issued a federally compliant Request for Proposals (RFP). The RFP included the following evaluation criteria:

Evaluation Criteria Introductory Letter 0 Points Project Manager’s Qualifications & Experience 150 Points Personnel Qualifications & Experience 150 Points Firm’s Qualifications & Experience 100 Points Understanding / Approach to the Scope of Services 200 Points Cost proposal 400 Points TOTAL POINTS AVAILABLE 1,000 Points

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 602-262-7433

On September 2, 2016, two firms submitted their proposal as identified below. Parsons was deemed responsive to the RFP with TIPS Consultants LLC deemed non- responsive due to non-compliance with the DBE outreach requirements of the RFP.

Proposers in Ranked Order Parsons Transportation Group, Inc. 970 Points TIPS Consultants LLC Non-Responsive

The evaluation committee reviewed, scored and ranked the Parson’s proposal and found them a qualified best value firm for the project. The contract price is deemed fair and reasonable when compared to an independent cost estimate and cost price analysis prepared by staff.

COST AND BUDGET The consulting contract for approval is an amount not to exceed $715,226. A contract contingency not to exceed $71,523 (10 percent) is established for the project for unanticipated changes.

For the Fiscal Year 2017, The VMR contract obligation is $715,226, which is fully funded within the VMR Adopted FY 2017 Operating and Capital Budget. Contract obligations beyond FY 2017 are incorporated into the Valley Metro Rail Five-Year Operating Forecast and Capital Program (FY2017 thru FY2021).

The source of funding is Prop 400 and federal CMAQ.

STRATEGIC PLAN ALIGNMENT This item relates to the following goals and strategies in the Five-Year Strategic Plan, FY 2016 – 2020:

• Goal 2: Advance performance based operation o Tactic A: Operate an effective, reliable, high performing transit system

COMMITTEE PROCESS RTAG: October 18, 2016 for information RMC: November 2, 2016 approved Board of Directors: November 10, 2016 for action

RECOMMENDATION Staff recommends that the Board of Directors authorize the Interim CEO to execute a contract with Parsons Transportation Group, Inc. for Consulting Services for the Project Implementation of the SCADA Upgrade in an amount not to exceed $715,226 and to establish a contract change contingency of $71,523 that is included in the overall budget established for the project.

CONTACT Ray Abraham Chief Operations Officer 602-652-5054 [email protected]

ATTACHMENT None

DATE AGENDA ITEM 3B November 2, 2016

SUBJECT Light Rail Vehicle (LRV) Gearbox/Axle Overhaul Contract Award

PURPOSE To request authorization for the Interim Chief Executive Officer (CEO) to execute a 3- year contract with UTCRAS, Inc. to complete a gearbox/axle overall program for the light rail vehicles in an amount not to exceed $1,631,106 for the period January 2017 thru December 2019, and to establish a contract change contingency of $163,111 that is included within the overall budget established for the project.

BACKGROUND/DISCUSSION/CONSIDERATION The original equipment manufacturer (OEM) recommends that the LRV gearbox/axle assemblies be overhauled at approxiamately 500,000 miles or 10 years, whichever comes first. The purpose of the overhaul is to keep the equipment in a state of good repair and to maintain safe and reliable operation.

The current age of the light rail vehicles is nine years in revenue service with an average mileage of each vehicle being approxiamately 409,000 miles. There are currently 50 LRVs in the total fleet.

The contractor shall provide all necessary parts, materials and labor to complete the gearbox/axle overhaul program for 50 LRVs. The cost includes overhauling and testing the equipment to original equipment manufacturer (OEM) standards. All overhaul equipment is warranted against defects for a period of 12 months.

Valley Metro LRV maintenance personnel will remove the gearbox/axle assemblies from the vehicles and ship to the contractor. The contractor will overhaul the equipment and return to the Valley Metro LRV Maintenance Facility. There will be 214 axle assemblies and 217 gearboxes that will be overhauled.

In August 2016, Valley Metro issued a federally compliant Invitation for Bids (IFB) for this contract. The list of companies that submitted bids were as follows:

1. IGW USA, LLC 2. Penn Machine Company, LLC 3. UTCRAS, Inc. 4. ZF Gainsville Services, LLC

UTCRAS, Inc. was determined to be lowest, responsive, responsible bidder.

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 85003 • 602-262-7433

COST AND BUDGET The gearbox/axle assembly overhaul contract for approval has a total term of 3 years. For the total term of the contract, the award cost is $1,631,106. A contract contingency not to exceed $163,111 (10 percent) is established for the project for unanticipated changes. During the overhaul process, there may be issues that arise that are not included in the original scope of work but may require additional parts to complete the project. The gearbox/axle assembly overhaul program will be completed over four fiscal years beginning January 2017 and will be expended as follows:

FY 2017 $ 271,851 FY 2018 $ 543,702 FY 2019 $ 543,702 FY 2020 $ 271,851 Total $1,631,106

For the Fiscal Year 2017, The VMR contract obligation is $271,851, which is fully funded within the VMR Adopted FY 2017 Operating and Capital Budget. Contract obligations beyond FY 2017 are incorporated into the Valley Metro Rail Five-Year Operating Forecast and Capital Program (FY2017 thru FY2021).

The source of funding is Prop 400 and federal Section 5337.

COMMITTEE PROCESS RTAG: October 18, 2016 for information RMC: November 2, 2016 for action Board of Directors: November 10, 2016 for action

RECOMMENDATION Staff recommends that the Board of Directors authorize the Interim CEO to execute a 3- year contract with UTCRAS, Inc. to complete a gearbox/axle overall program for the light rail vehicles in an amount not to exceed $1,631,106 for the period January 2017 thru December 2019, and to establish a contract change contingency of $163,111 that is included within the overall budget established for the project.

CONTACT Ray Abraham Operations and Maintenance Director 602-262-7433 [email protected]

ATTACHMENT None

DATE AGENDA ITEM 3C November 2, 2016

SUBJECT Light Rail Vehicle (LRV) Traction Motor Overhaul Contract Award

PURPOSE To request authorization for the Interim Chief Executive Officer (CEO) to execute a 3- year contract with Traction Systems, Inc. to complete a traction motor overall program for the light rail vehicles in an amount not to exceed $731,685 for the period November, 2016 thru October 2019, and to establish a contract change contingency of $73,169 that is included in the overall budget established for the project.

BACKGROUND/DISCUSSION/CONSIDERATION The original equipment manufacturer (OEM) recommends that the LRV traction motors be overhauled at approxiamately 930,000 miles or 10 years, whichever comes first. The purpose of the overhaul is to keep the equipment in a state of good repair and to maintain safe and reliable operation.

The current age of the light rail vehicles is 9 years in revenue service with an average mileage of each vehicle being approxiamately 409,000 miles. There are currently 50 LRVs in the total fleet.

The contractor shall provide all necessary parts, materials and labor to complete the traction motor overhaul program for 50 LRVs. The cost includes overhauling and testing the equipment to original equipment manufacturer (OEM) standards. All overhaul equipment is warranted against defects for a period of 12 months.

Valley Metro LRV maintenance personnel will remove the traction motors from the vehicles and ship to the contractor. The contractor will overhaul the equipment and return to the Valley Metro LRV Maintenance Facility. There are four traction motors per vehicle plus seven spares for a total of 207 traction motors that will be overhauled.

In August 2016, Valley Metro issued a federally compliant Invitation for Bids (IFB) for this contract. An IFB is a competitive procurement utilizing sealed bids and is awarded to the lowest responsive, responsibler bidder. The list of companies that submitted bids were as follows:

1. Calmet Armature and Electric 2. Traction Systems, Inc. 3. Ram Industrial Services 4. Traction Motor Service 5. Sherwood Electromotion, Inc. 6. Sulzer Electro-Mechanical Services

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 85003 • 602-262-7433

Four of the six firms that submitted bids were non-responsive and therefore disqualified due to non-compliance with the DBE outreach requirements and lack of technical documents to meet the scope of work. Traction Systems, Inc. was determined to be lowest, responsive, responsible bidder.

COST AND BUDGET The traction motor overhaul contract for approval has a total term of 3 years. For the total term of the contract, the award cost is $731,685. A contract contingency not to exceed $73,169 (10 percent) is established for the project for unanticipated changes. During the overhaul process, there may be issues that arise that are not included in the original scope of work but may require additional parts to complete the project. The traction motor overhaul program will be completed over three fiscal years beginning November 2016 and will be expended as follows:

FY 2017 $ 146,337 FY 2018 $ 292,674 FY 2019 $ 292,674 Total $ 731,685

For the Fiscal Year 2017, The VMR contract obligation is $146,337, which is fully funded within the VMR Adopted FY 2017 Operating and Capital Budget. Contract obligations beyond FY 2017 are incorporated into the Valley Metro Rail Five-Year Operating Forecast and Capital Program (FY2017 thru FY2021).

The source of funding is Prop 400 and federal Section 5337.

COMMITTEE PROCESS RTAG: October 18, 2016 for information RMC: November 2, 2016 approved Board of Directors: November 10, 2016 for action

RECOMMENDATION Staff recommends that the Board of Directors authorize the Interim CEO to execute a 3- year contract with Traction Systems, Inc. to complete a traction motor overall program for the light rail vehicles in an amount not to exceed $731,685 for the period November, 2016 thru October 2019, and to establish a contract change contingency of $73,169 that is included in the overall budget established for the project.

CONTACT Ray Abraham Operations and Maintenance Director 602-262-7433 [email protected]

ATTACHMENT None

DATE AGENDA ITEM 3D November 2, 2016

SUBJECT 50th Street Light Rail Transit (LRT) Station Third Party Utility Agreements

PURPOSE To request authorization for the Interim Chief Executive Officer (CEO) to sign Letters of Authorization with third party utility companies for their design and construction activities on the 50th Street LRT Station project for an amount not to exceed $2,119,765 and to authorize staff to hold $211,976 (10%) for use as a contingency for unforeseen circumstances.

BACKGROUND/DISCUSSION/CONSIDERATION The 50th Street Station project consists of building a new light rail transit station on the existing line located on Washington Street in East Phoenix. The station will provide access to new developments in this growing area and the Ability 360 facility. The Ability 360 facility houses multiple agencies focused on providing services for persons with disabilities.

Presently Gannett Fleming, Inc. is developing the project’s final design and Stacy and Witbeck, Inc., the project’s Construction Manager At Risk contractor, is finalizing utility survey and pre-construction work. Construction is anticipated to commence in April 2017.

An important next step in the project’s development is to design and construct required utility relocations. In order to commence this work, Letters of Authorization are needed with the following third party utility companies: APS, CenturyLink, Cox Communications, SRP Fiber and Southwest Gas. Initially, only authorizations for design work will be issued to the utilities. Once design work is completed, construction cost estimates will be negotiated with the utility companies and additional authorizations will be issued to relocate the utilities.

Valley Metro’s contractor, Stacy and Witbeck, Inc., will perform water, sewer, drainage, portions of gas, and joint trench (APS, CenturyLink and Cox) utility relocation work. Staff intends to seek Board approval to award project construction, which will include this utility work, to Stacy and Witbeck in April 2017, assuming agreement on cost is attained. Third party utility companies will relocate all other utilities.

COST AND BUDGET The 50th Street Station project is 100% funded by the City of Phoenix and is made possible as a result of the Proposition 104 transportation sales tax approved by Phoenix voters in August 2015.

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 602-262-7433

The third party utility companies that will be required to relocate their lines and the cost estimate for each are outlined in the following table. The table also identifies a 10% contingency to be held by Valley Metro staff for unforeseen circumstances.

Utility Company Estimated Cost

APS $ 1,086,797

CenturyLink $ 221,144 Cox Communications $ 132,562

SRP Fiber $ 100,000

SWG $ 579,262 Sub-Total $ 2,119,765

Contingency (10%) $ 211,976

Total $ 2,331,741

All costs identified herein are within the 50th Street Station project cost forecast and are included in the Valley Metro Rail adopted FY17 Operating and Capital Budget. Contract obligations beyond FY17 are incorporated into the Five-Year Operating Forecast and Capital Program (FY17 thru FY21).

STRATEGIC PLAN ALIGNMENT This item relates to the following goals and strategies in the Five-Year Strategic Plan, FY 2016 – 2020: • Goal 2: Advance performance based operation o Tactic C: Deliver projects and services on-time/on-budget. • Goal 3: Grow transit ridership o Tactic A: Expand and improve transit services to reach new markets. o Tactic B: Improve connectivity of transit services for greater effectiveness.

COMMITTEE PROCESS RTAG: October 18, 2016 for information RMC: November 2, 2016 approved Board of Directors: November 10, 2016 for action

RECOMMENDATION Staff recommends that the Board of Directors authorize the Interim CEO to sign Letters of Authorization with third party utility companies for their design and construction activities on the 50th Street LRT Station project for an amount not to exceed $2,119,765

and to authorize staff to hold $211,976 (10%) for use as a contingency for unforeseen circumstances.

CONTACT Wulf Grote, PE Director, Capital & Service Development 602-322-4420 [email protected]

ATTACHMENT None

DATE AGENDA ITEM 3E November 2, 2016

SUBJECT Easement agreement with the City of Phoenix and Cloquet Metrowest, LLC

PURPOSE To request authorization for the Interim Chief Executive Officer (CEO) to enter into an easement agreement involving the City of Phoenix and Cloquet Metrowest, LLC developers of Union at Roosevelt.

BACKGROUND/DISCUSSION/CONSIDERATION The Union at Roosevelt is a new development owned by Cloquet Metrowest , LLC and is located on 888 North 1st Avenue adjacent to the light rail line south of the Roosevelt Station in Phoenix. The developer desires removal of an existing catenary pole where a new driveway is proposed. In lieu of the catenary pole, the developer proposes to attach eyebolts to their building. A cable will be affixed to the eyebolts and will be connected to the light rail overhead electrical contact system to provide necessary support for the contact system. An agreement is required between the City of Phoenix, Valley Metro and the developer to allow for the eye bolt installation and for ongoing Valley Metro maintenance of the overhead contact system on private property.

The Union at Roosevelt is another success story in transit oriented development along the existing light rail line. This type of development will enhance access to the light rail system and will be a positive factor in boosting ridership.

COST AND BUDGET All costs associated with the implementation of the eyebolts and cable will be the responsibility of the developer. Also, this change will not affect Valley Metro’s maintenance costs.

STRATEGIC PLAN ALIGHMENT This item relates to the following goals and strategies in the Five-Year Strategic Plan, FY 2016 – 2020: o Goal 3: Grow transit ridership • Tactic A: Expand and improve transit services to reach new markets. • Tactic B: Improve connectivity of transit services for greater effectiveness.

COMMITTEE PROCESS RTAG: October 18, 2016 for information RMC: November 2, 2016 approved Board of Directors: November 10, 2016 for action

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 85003 • 602-262-7433

RECOMMENDATION Staff recommends that the Board of Directors authorize the Interim CEO to enter into an easement agreement involving the City of Phoenix and Cloquet Metrowest, LLC developers of Union at Roosevelt.

CONTACT Wulf Grote, PE Director, Capital and Service Development [email protected] 602.322.4420

ATTACHMENT None

DATE AGENDA ITEM 3F November 2, 2016

SUBJECT Tempe Streetcar Public Art Services Contract Awards

PURPOSE To request approval for the Interim Chief Executive Officer (CEO) to execute four contracts for the Tempe Streetcar project for Public Art Services with Koryn Rolstad, Simon Donovan and Ben Olmstead, Mary Lucking and Bobby Zokaites for a total not to exceed $735,648 and $73,565 (10%) for contingency, to be retained by staff for unforeseen circumstances.

BACKGROUND/DISCUSSION/CONSIDERATION The Tempe Streetcar project is approximately 3.0 miles long and extends along Rio Salado Parkway, through a one-way couplet loop in downtown Tempe on Mill and Ash avenues, Mill Avenue south of University Drive, and east on Apache Boulevard to the current Dorsey Lane LRT station. For purposes of art, the streetcar alignment has been sectioned into four districts which best reflect the diversity of stakeholders.

The project includes four major procurements: Streetcar Vehicles, Design Services, Construction Manager at Risk (CM@Risk) Services and Public Art Services (four contracts). All of these project elements have been advertised. The selection processes for Design and Public Art Services are now complete and are ready for Board action. The procurement process for Streetcar Vehicles and CM@Risk Services are still underway and will require Board action at later dates.

The four Public Art Services Contracts will be assigned by district. Each artist will create a master plan to develop, design and install artwork at the streetcar stops located in each of their districts within the alignment. Artwork will reflect the spirit and community represented in these areas. Artists will collaborate with the Design Consultant and CM@Risk Contractor throughout design and construction of the project.

An RFQ for Tempe Streetcar Public Art Services was issued on August 16, 2016. Statements of Qualifications were due and received on September 26, 2016. A total of 56 submittals were received and deemed responsive. Four selection committees each comprised of two Regional Rail Art Committee (RRAC) members and seven stakeholders were held on the 17th – 20th of October. The artists selected were: Koryn Rolstad for District 1, Simon Donovan and Ben Olmstead for District 2, Mary Lucking for District 3 and Bobby Zokaites for District 4.

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 602-262-7433

The artists in the following table are recommended for contract award.

Location Selected Artist District 1 Koryn Rolstad $157,639 District 2 Simon Donovan and Ben Olmstead $262,731 District 3 Mary Lucking $157,639 District 4 Bobby Zokaites $157,639

COST AND BUDGET The Tempe Streetcar project is funded by a combination of federal, regional and City of Tempe funds. Public Art is funded entirely with regional Public Transportation Funds, given that federal funds can no longer be used for this purpose. The cost for the four Public Art Services contracts is not to exceed $735,648 and $73,565 (10%) for contingency, to be retained by staff for unforeseen circumstances.

All costs identified herein are within the Tempe Streetcar project’s cost forecast and are included in the Valley Metro Rail adopted FY17 Operating and Capital Budget. Contract obligations beyond FY17 are incorporated into the Five-Year Operating Forecast and Capital Program (FY17 thru FY21).

STRATEGIC PLAN ALIGNMENT This item relates to the following goals and strategies in the Five-Year Strategic Plan, FY 2016 – 2020: o Goal 2: Advance performance based operation • Tactic C: Deliver projects and services on-time/on-budget. o Goal 3: Grow transit ridership • Tactic A: Expand and improve transit services to reach new markets. • Tactic B: Improve connectivity of transit services for greater effectiveness.

COMMITTEE PROCESS RTAG: October 18, 2016 for information RMC: November 2, 2016 approved Board of Directors: November 10, 2016 for action

RECOMMENDATION Staff recommends that the Board of Directors authorize the Interim CEO to execute four contracts for the Tempe Streetcar Project for Public Art Services with Koryn Rolstad, Simon Donovan and Ben Olmstead, Mary Lucking and Bobby Zokaites for a total not to exceed $735,648 and $73,565 (10%) for contingency, to be retained by staff for unforeseen circumstances.

CONTACT Wulf Grote, PE Director, Capital and Service Development 602-322-4420 [email protected]

ATTACHMENT None

DATE AGENDA ITEM 3G November 2, 2016

SUBJECT Intergovernmental Agreements (IGAs) with the City of Phoenix for Federal Transit Administration Pass-Through Grants

PURPOSE To request authorization for the Interim Chief Executive Officer (CEO) to execute IGAs with the City of Phoenix to allow Valley Metro Rail to be reimbursed for eligible activities.

BACKGROUND/DISCUSSION/CONSIDERATION Valley Metro Rail is being provided federal funds through the Federal Transit Administration (FTA) from four grant sources. The table below summarizes the funding available:

Grant Source Federal Share Local Share Total AZ-2016-010 5307 – Formula $1,306,449 $326,612 $1,633,061 AZ-2016-013 5337 – SOGR FG $395,633 $98,908 $494,541 AZ-2016-014 CMAQ $821,250 $49,641 $870,891 AZ-2016-024 CMAQ/STP Flex $47,932,510 $4,748,799 $52,681,309 Total $50,455,842 $5,223,960 $55,679,802

• Funds from the Section 5307 Urbanized Area Formula Program are awarded for preventive maintenance. • Funds from the Section 5337, State of Good Repair Fixed Guideway Program, are awarded for major capital expenses associated with light rail vehicle maintenance. • Funds from the Congestion Mitigation/Air Quality Program flexed from the Federal Highway Administration from a previous federal fiscal year are awarded for costs associated with the Capitol/I-10 West corridor. • Funds from the Congestion Mitigation/Air Quality Program and Surface Transportation Program flexed from the Federal Highway Administration are awarded for costs associated with the Gilbert Road Extension, Tempe Streetcar, and the Capitol/I-10 West corridor.

The City of Phoenix is the designated recipient for all FTA grant funds for the region. Valley Metro Rail undertakes projects approved for FTA grant funding, then submits requests to Phoenix for reimbursement of actual expenses incurred. Phoenix then executes a drawdown of funds from FTA to pass-through the reimbursement to Valley Metro Rail.

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 602-262-7433

The pass-through IGA is required in order for Phoenix to reimburse Valley Metro Rail for eligible expenses.

COST AND BUDGET All expenses associated with grant funds are in the approved FY 2017 Adopted Operating and Capital Budget and 5-Year Capital Program. The grant funds will offset expenses, reducing the net cost to the Public Transportation Fund and member agency budgets.

COMMITTEE PROCESS RTAG: October 18, 2016 for information RMC: November 2, 2016 approved Board of Directors: November 10, 2016 for action

RECOMMENDATION Staff recommends that the Board of Directors authorize the Interim CEO to execute the IGAs with the City of Phoenix for the listed grants.

CONTACT Paul Hodgins Interim Chief Financial Officer 602-523-6043 [email protected]

ATTACHMENT None

DATE AGENDA ITEM 4 November 2, 2016

SUBJECT 50th Street Light Rail (LRT) Station Addition – Potential Impacts on Operations

PURPOSE To provide information regarding the potential impact to LRT operations and auto traffic during and after the construction of the 50th Street LRT Station.

BACKGROUND/DISCUSSION/CONSIDERATION This project, scheduled for completion in 2019, will add a new light rail transit station in the vicinity of 50th Street on Washington Street in East Phoenix. The station will provide access to new developments in this growing area and the Ability 360 facility. The Ability 360 facility houses multiple agencies focused on providing services for persons with disabilities.

The 50th Street Station project consists of constructing a passenger platform on the outside of each of the existing light rail tracks. No track work or overhead electrical contact system work is expected. However, to fit the two new passenger platforms adjacent to the existing tracks, this will require roadway and sidewalk reconstruction. This will also require some utility relocations to occur. In addition, signalized pedestrian crossings will be installed at each end of the new station.

This will be Valley Metro’s first station addition in proximity to an existing light rail operation. Key questions include: • What will be the impact of construction on existing LRT operations and passenger travel time between Phoenix and the East Valley? • What will be the construction impact on auto traffic? • How will private property access be affected during the construction period? • How will this station addition affect light rail travel time between Phoenix and the East Valley after construction has been completed?

Valley Metro and Phoenix staff are working closely with the project’s design consultant and construction contractor to address these questions. The project team is developing a mitigation plan to minimize light rail and auto impacts during the construction period. Staff will provide a presentation to share the proposed mitigation plan and answer the above questions.

COST AND BUDGET None

STRATEGIC PLAN ALIGNMENT This item relates to the following goals and strategies in the Five-Year Strategic Plan, FY 2016 – 2020:

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 602-262-7433

• Goal 1: Increase customer focus o Tactic A: Improve customer satisfaction o Tactic C: Enhance customer service to member cities o Tactic E: Enhance services and facilities for seniors and people with disabilities • Goal 2: Advance performance based operation o Tactic C: Deliver projects and services on-time/on-budget • Goal 3: Grow transit ridership o Tactic B: Improve connectivity of transit services for greater effectiveness

COMMITTEE PROCESS RTAG: October 18, 2016 for information RMC: November 2, 2016 for information Board of Directors: November 10, 2016 for information

RECOMMENDATION This item is presented for information only.

CONTACT Wulf Grote, PE Director, Capital and Service Development 602.322.4420 [email protected]

ATTACHMENT None

10/26/2016

50th Street Station Construction During Operations November 2016

Impacts during construction • Train Operations & Guideway • Roadway Impacts – Traveling Public • Business/Property Access

Service, Reliability and Safety #1

1 10/26/2016

2 10/26/2016

Project Schedule

• Construction phases: – Utility Relocation – Roadway Construction – Platform Construction

PHASE 1A Utility Relocation & Roadway Construction

PHASE 1B Roadway Construction

PHASE 2 Platform Construction

3 10/26/2016

Utility Relocation • 12 months – 69kv APS power line – City of Phoenix Water – Southwest Gas - high pressure main • Rail operation impacts: – Non-revenue single-track or unplanned • Roadway impacts: – Washington single lane – Possibility of full closures w/detour – Several lane shifts – Combine pedestrians and bicycle lanes w/ frequent route changes 7

Roadway Construction • 12 – 14 months

• Rail operation impacts: – Watchman lookout required – Possible speed restrictions

• Roadway impacts: – Washington single lane – Possibility of full closures w/detours – Several lane shifts

– Sidewalk and driveway construction 8

4 10/26/2016

Proposed Detours

Platform Construction • 6 months

• Rail operation impacts: – Non-revenue hours: • Single track operations • Power down system (OCS) – Revenue hours: • Watchman lookout required • Speed restrictions likely • Roadway impacts: – Washington single lane 10

5 10/26/2016

Other Potential Impacts

• Bus Operations – Connections • Customer Service

Service, Reliability and Safety #1

DATE AGENDA ITEM 5 November 2, 2016

SUBJECT Contract Monitoring Security Services Update

PURPOSE Provide an update regarding the Contract Monitoring for Security Services.

BACKGROUN/DISCUSSION/CONSIDERATION The security services contract is monitored and administered by the Safety Security and Quality Assurance Division. The Division is currently working to build up the monitoring through the upgrade of the current coordinator to manager and the advertisement of a coordinator replacement to assist in the administration of this contract.

The security service provider via the new scope of work, is responsible for the security and fare inspector hours, administrator/trainer, fixed post security personnel, platform/Park-and-Ride rover, dispatch and control and supervisors. It was recognized in the past, the former contract did not have adequate and effective line level or middle management supervision. The new scope of work allows for the time to train and develop effective supervisory management skills.

Since the award of the contract, Valley Metro has met with upper management with Allied Universal to outline very specifically the expectations of the proposer. Valley Metro has worked very closely with the contractor to identify areas of improvement. The contractor is required to be responsive, hold field personnel accountable to performance and remain visible and attentive to security issues on the system. Fare inspection is still a large component of the service provided however, the contractor focus is to show a presence and respond to issues at park-and-ride locations, platforms and on board trains.

Staff will provide information to the Board on these efforts.

COST AND BUDGET None

COMMITTEE PROCESS RTAG: October 18, 2016 for information RMC: November 2, 2016 for information Board of Director: November 10, 2016 for information

RECOMMENDATION This item is presented for information.

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 85003 • 602-262-7433

CONTACT Adrian Ruiz Director Safety Security and Quality Assurance 602-523-6054 [email protected]

ATTACHMENT None

10/26/2016

Contract Monitoring Security Services Update

November 2016

Contract Expectations Personnel • Security and Fare Inspection 57 • Administrative-Training Officer 1 • Field Supervisors-mobile (3) 24/7 • Shift Supervisor-mobile (1) 24/7 • Fixed Post Security (OMC/Greenfield) 15 • Platform/PNR Rover 7 • Dispatch and Control Center 8 • Account Manager 1 no cost • District Manager 1 no cost

1 10/26/2016

Meetings and Monitoring

• Regional Security Team Meetings held monthly – Follow up meetings with the security contractor monthly • Request for consistency in maintaining the earned momentum through effective District Manager leadership • Personally met with the Regional Vice President (September) • Newly appointed District Manager (September) • Meeting with National Vice President (October)

Additional Enhancements • Staff Support – Security Manager/Security Coordinator • Regular meetings with AUS staff • Highlight of positive performance/PR campaign • Hands on training and video

DATE AGENDA ITEM 6 November 2, 2016

SUBJECT Future Agenda Items Request and Report on Current Events

PURPOSE Chair Mitchell will request future agenda items from members, and members may provide a report on current events.

BACKGROUND/DISCUSSION/CONSIDERATION None

COST AND BUDGET None

COMMITTEE PROCESS None

RECOMMENDATION This item is presented for information only.

CONTACT Scott Smith Interim Chief Executive Officer 602-262-7433 [email protected]

ATTACHMENT Pending Items Request

VALLEY METRO • 101 N 1ST AVE • STE 1300 • PHOENIX AZ • 602-262-7433

Pending Items Request

Item Requested Date Requested Planned Follow-up Date