1:30 pm I March 7, 2012€¦ · 1:30 pm I March 7, 2012 101 N. 1st Ave. 10th Floor . Lake Powell...

1:30 pm I March 7, 2012

101 N. 1st Ave. 10th Floor

Lake Powell Conference Room Phoenix, AZ 85003

February 29, 2012 To: Chairman Cavazos and Members of the Rail Management Committee From: Stephen R. Banta, Chief Executive Officer Date: March 7, 2012 Time: 1:30 p.m. Location: 101 N. First Ave. 10th Floor - Lake Powell Conference Room Phoenix, AZ 85003 Please park in the garage in the US Bank Building (enter from Adams Street) and bring your parking ticket to the meeting as parking will be validated. Transit passes will be provided to those using transit. For those using bicycles, please lock your bicycle in the bike rack in the garage. Rail Management Committee members may attend the meeting by teleconference. If you have any questions or need additional information regarding attendance by teleconference, please contact Gina Frackiewicz at (602) 322-4455.

Item Action Requested

1. Call to Order

2. Call to the Audience Information

A 15-minute opportunity will be provided to members of the public at the beginning of the meeting to address the RMC on all agenda items. The Chairman may recognize members of the public during the meeting at his/her discretion. Up to three minutes will be provided per speaker.

3. Minutes Action

Summary minutes from the February 1, 2012 RMC are presented for review and approval. Please see information attached for Agenda Item 3 for additional information.

Rail Management Committee Agenda February 29, 2012 Page 2 of 2

Item Action Requested

4. Chief Executive Officer’s (CEO) Report Information

Stephen R. Banta will brief the RMC on current light rail issues.

Regular Agenda

5. Central Mesa LRT Extension - Design-Build Services Contract

Action

Staff is requesting that the RMC recommend that the METRO Board of Directors authorize the CEO to execute a contract for Design-Build Services for the Central Mesa Light Rail Transit (LRT) Extension. Please see information attached for Agenda Item 5 for additional information.

6. Transit Oriented Development Working Group Update Information

In November 2011, RMC requested that METRO staff investigate the potential to create a TOD Working Group consisting of member agencies. Staff will present information related to the formation of a TOD Working Group. Please see information attached for Agenda Item 6 for additional information.

7. Program Management / Construction Management Services

Information and

Discussion Staff is presenting information regarding METRO’s and

Regional Public Transportation Authority’s use of the Joint Venture’s transit management consulting services. Please see information attached for Agenda Item 7 for additional information.

8. Future Rail Management Committee Agenda Items Information

The RMC may request consideration of future agenda items. No additional information is attached.

9. Adjournment Action With 24-hour’s notice, special assistance, including provision of materials in alternate formats, can be provided for persons with sight and/or hearing impairments. Call 602-253-5000 (voice) or 602-261-8208 (TTY) to request accommodations.

AGENDA ITEM 3 Minutes

February 1, 2012 101 North First Avenue

13th Floor – Board Room Phoenix, Arizona

Management Committee Members Present David Cavazos, City of Phoenix Greg Jordan, City of Tempe Mike James, City of Mesa Terry Johnson, City of Glendale Dan Cook, City of Chandler Bryan Jungwirth, Regional Public Transportation Authority

1. Call to Order

Chairman Cavazos called the meeting to order at 1:30 p.m.

2. Call to the Audience

Chairman Cavazos announced that he will soon be moving to downtown Phoenix across from a light rail station. He plans to sell one of his vehicles, as well.

3. Minutes

IT WAS MOVED BY MIKE JAMES AND SECONDED BY DAN COOK AND UNANIMOUSLY CARRIED TO APPROVE THE JANUARY 4, 2012 MEETING MINUTES.

4. Chief Executive Officer’s (CEO) Report

Mr. Stephen R. Banta, METRO’s Chief Executive Officer, addressed the following items as part of his report:

TIGER IV Notice of Funding Availability (NOFA): Pre-applications are due on February 20 and final applications are due March 19. There is $500 million available with $120 million set aside for rural areas and up to another $100 million for high speed rail. The criteria for TIGER IV are similar to TIGER III. METRO continues to propose the Tempe Streetcar Project through TIGER IV.

President’s Budget: The President’s budget is scheduled to be released on February 13 and it will include Central Mesa funding request to Congress.

Ridership: Preliminary ridership numbers for January indicate that it should surpass last year’s January ridership numbers.

Rail Management Committee Meeting Minutes February 1, 2012 Page 2 of 4

Farebox Recovery Update: Average Fare finished at $0.80 per ride in the Second Quarter (October, November, December 2011), which is consistent with the METRO budget for this fiscal year. Total fares collected for the quarter were surpassed by 6 percent and the fares are tracking in line with the ridership. Fare Revenue Recovery was 34 percent for the second quarter versus planned 29.5 percent.

5. Consent Agenda

5a. Fiscal Year 2011 Comprehensive Annual Financial Report and Single Audit Act Report

IT WAS MOVED BY MIKE JAMES AND SECONDED BY GREG JORDAN AND UNANIMOUSLY CARRIED TO RECOMMEND THAT THE BOARD ACCEPT THE COMPREHENSIVE ANNUAL FINANCIAL REPORT AND SINGLE AUDIT ACT REPORT FOR THE PERIOD ENDED JUNE 30, 2011.

5b. Federal Legislative Update

Informational item only. The memo provided information on the METRO priorities for potential discretionary grant opportunities during calendar year 2012, as well as policies related to the reauthorization of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU). The Federal Funding and Policy Priorities for 2012 will be forwarded to Valley Metro/RPTA for inclusion in the regional public transportation request to be considered by their Board.

Regular Agenda

6. Light Rail Vehicle Door Replacement Program

Mr. John McCormack, Director of Finance and Administration, stated that the light rail vehicle (LRV) door rebuild program is an action to contain costs in the future. Its purpose is to reduce the number of broken doors by implementing this program and reduce the long-term operating cost.

The current LRV design is susceptible to vandalism. The repairs through June 20, 2011 have totaled $400,000. There are an additional 140 panels to be repaired which is a cost of approximately $329,000. METRO does not currently have the capacity to perform in-house repairs. The repairs need to be off-site and the cost to repair each door panel is estimated at $2,354. If METRO does not proceed, the status quo forecast for the repairs will be $300,000 per year.

The contractor for the glass doors, IFE, made several recommendations for full glass doors; however, after METRO’s review of the recommendations, METRO does not recommend full glass door refurbishment based on the following:


• When doors need repairs, METRO would have to send them to IFE for repair to maintain revenue service

• Cost per panel would be $2,400 – total cost to refurbish the fleet $2.1 million

• Door of LRV will stick out a few millimeters which would infringe on the door travel and car wash brushes would wear prematurely

• Weight increase by 220 lbs per LRV. This will increase more drag on door operating unit.

Kinkisharyo proposed an alumacraft door, a rebuild design which was presented to the RMC and the METRO Board in the fall 2011. METRO is recommending this option and an issuance of a contract with Metalcrafters for $1,737,000. All the LRVs would be rebuilt by the end of 2012. The funding for this rebuild program is proposed from the Capital Lease Fund – PTF, Fiscal Year 2011 Operating Surplus, and the Fiscal Year 2013 Operating Fund.

METRO should take action immediately to avoid annual costs of $300,000 and, with funding available to perform the rebuild, begin accruing savings in excess of $3,000,000 over a ten-year period.

Chairman Cavazos asked about the vandalism and the experience other cities had with these types of doors. Mr. Banta stated that no other light rail system has this type of door. METRO was on the cutting edge of design at the time. The operator of the train has control of the doors and when the customer sees the door close they will push the yellow push button integrated into the door. When the door does not open, the customer will push the button harder and harder until the glass cracks. Other times the customers will get a little anxious to get in or out and kick the doors and cause the door to crack. The doors are epoxied in and therefore the door leaf has to be removed and sent out to be re-epoxied and then reinstalled.

Mr. Jordan asked if there were any grant funding close-out funds available. Mr. McCormack stated that if there were some close-out funds available through the Maricopa Association of Governments (MAG) process or surplus available from preventative maintenance we could look at that opportunity.

Mr. James stated that during the engineering phase of the design of the LRV there was concern about the metal doors due to opportunities of stray currents during an electrical storm, etc. Mr. James asked if there is any design concern with switching doors from glass to metal. Mr. Banta stated that he does not have any concerns with the doors. The doors are insulated from voltage.

Chairman Cavazos asked if anyone has explored engineering solutions to not have to replace all the doors (i.e., interfere during the hitting process, signage to


not kick doors, etc.). Mr. Banta stated that METRO has done everything it could. The open door push button embedded in the glass door is a weak point on the door.

Chairman Cavazos asked if every single LRV door will need to be replaced. Mr. Banta stated that there are approximately 100 doors that are transitioned on a periodic basis. All spares are consumed while the doors are sent out for repair in order to keep the trains running.

Chairman Cavazos asked Mr. Michael J. Ladino, General Counsel, if there are any design flaws or legal issues. Mr. Ladino stated that there is no negligence and no one could have foreseen that this kind of problem could have resulted in this circumstance.

Chairman Cavazos asked if this type of door is not being sold anymore. Mr. Ladino stated that as Mr. Banta stated earlier this was a cutting edge design, something that METRO liked; however, it does not hold up in practice.

Mr. Jordan asked if this is going to be a campaign that we do all the replacements at once. Mr. Banta stated that the current plan is to use what we have already broken as the float and change out car sets at a time periodically through the end of this year.

Chairman Cavazos asked if every option was considered. Mr. Banta stated that every option was considered.

IT WAS MOVED BY GREG JORDAN AND SECONDED BY MIKE JAMES AND UNANIMOUSLY CARRIED TO RECOMMEND THAT THE BOARD AUTHORIZE THE CEO TO EXECUTE A CONTRACT WITH GAFFOGLIO FAMILY METALCRAFTERS, INC. FOR A TOTAL AMOUNT NOT TO EXCEED $1,737,000.00. IN ADDITION, THE RMC RECOMMEND THAT THE BOARD APPROVE AN INCREASE OF $550,000 TO THE FY2012 CAPITAL BUDGET FOR THE PORTION OF THE LRV CAR DOOR MODIFICATIONS THAT ARE ANTICIPATED TO BE COMPLETED BY JUNE 30, 2012. THE RMC REQUESTED THAT EFFORTS BE MADE TO REDUCE MEMBER CITY CONTRIBUTION THROUGH THE GRANT CLOSE-OUT PROCESS.

7. Future Rail Management Committee Agenda Items

There were no requests for future agenda items.

8. Adjournment

The meeting adjourned at 1:45 p.m.

AGENDA ITEM 5 Central Mesa LRT Extension

Design Build Services Contract

AGENDA ITEM 5

To: Chairman Cavazos and Members of the Rail Management Committee

Through: Stephen R. Banta, Chief Executive Officer

From: Wulf Grote, PE, Director of Planning and Development

Date: February 29, 2012

Re: Central Mesa Light Rail Transit Extension - Design-Build Services Contract

PURPOSE The purpose of this memorandum is to request that the Rail Management Committee (RMC) recommend that the METRO Board of Directors (Board) authorize the Chief Executive Officer (CEO) to execute a contract for Design-Build Services for the Central Mesa Light Rail Transit (LRT) Extension. BACKGROUND/DISCUSSION The Maricopa Association of Governments Regional Transportation Plan includes an LRT extension into Central Mesa. METRO is responsible for implementing this project, which consists of approximately 3.1 miles of double track alignment extending from the initial 20-mile LRT project’s eastern limit at Sycamore to an end of line station on Main Street just east of Mesa Drive. The project will include four stations on Main Street, including one at Alma School Road, Country Club Drive, Center Street, and Mesa Drive. Construction will also include a park-and-ride near Mesa Drive, paved track work, street reconstruction, overhead power, three traction power substation sites, communications facilities, landscaping and utility relocations. The alignment is primarily center-street running with the overhead electrical contact system poles located between the tracks. A Design-Build project delivery method is recommended for this project because it best facilitates collaboration between METRO, the designer, the constructor, the City of Mesa, and affected stakeholders. It also provides an opportunity to accelerate construction completion. In July 2011, METRO initiated a two-step procurement for the Design-Build team. The selection committee consisted of two METRO staff, one from the Utah Transit Authority, one City of Mesa licensed engineer, and one contractor as prescribed by A.R.S. 34-603.F.1. Committee members were chosen based on their expertise in construction and design work, as well as capital project development.

Rail Management Committee Memo February 29, 2012 Page 2

In the first step METRO issued a Request for Qualifications. The evaluation criteria applied to the Statements of Qualifications were: 1) Design-Build Team Organization; 2) Team/Firm Qualifications and Experience; 3) Key Individual Qualifications and Experience; 4) Budget and Schedule Compliance; and 5) Capacity to Service the Project. METRO received seven (7) Statements of Qualification; and, one (1) of these proposals was determined to be non-responsive due to a defined conflict of interest.

The selection committee short-listed the three most qualified firms. On September 26, 2011, METRO issued a Request for Proposals (RFP) to the following firms:

1. Valley Transit Constructors Joint Venture with Kiewit Infrastructure West / Mass Electric Construction (Parsons Transportation Group – lead design).

2. Central Mesa Constructors Joint Venture with Granite Construction Co. & RailWorks Track Systems (w/Gannett Fleming & AZTEC Engr. – lead design).

3. Sundt / Stacy & Witbeck Joint Venture (URS Corp – lead design / Jacobs as sub)

METRO received technical and price proposals from the three firms on January 12, 2012. The technical proposals were evaluated applying the following criteria: 1) Design-Build Approach, 2) Proposed Project Schedule, 3) Design Phase Approach, 4) Construction Phase Approach, 5) Project Close Out and Warranty and 6) Price Proposals. An offeror’s technical proposal was weighted at 65 percent of the available points and price was weighted at 35 percent.

The selection committee evaluated the technical proposals; oral interviews were conducted on February 9, 2012 to clarify each offeror’s understanding of, and responsiveness to, the solicitation requirements.

At the conclusion of the evaluation process, the selection committee chose the proposal from Valley Transit Constructors Joint Venture as the most responsive and responsible offeror with the highest score based on the above referenced criteria. The City of Phoenix Equal Opportunity Department determined a Disadvantaged Business Enterprise (DBE) Race Gender Neutral goal of 1.37 percent for this contract. It is anticipated that a Limited Notice to Proceed for design and utility relocations will be issued in early April 2012. METRO has received pre-grant award authority from the Federal Transit Administration (FTA) to start these project activities. A full Notice to Proceed will be issued after METRO enters into a Project Construction Grant Agreement with the FTA, which is anticipated during summer 2012. Arizona state law requires that each of the unsuccessful offerors receive a stipend equal to two-tenths of one percent of the project’s construction cost. Stipends to be paid to the two unsuccessful offerors will be $221,415 each; for a total of $442,830.


FISCAL IMPACT The Valley Transit Constructor’s cost proposal and schedule are within the budget and timeline established for the project. Funding for this LRT project is from a combination of Public Transportation Funds (PTF) from Proposition 400 sales tax revenues, federal Small Starts funds and federal Congestion Mitigation and Air Quality funds. City of Mesa funds will be utilized for Concurrent Non-Project Activities (CNPA’s). The negotiated contract price with Valley Transit Constructors is $111,070,729. METRO has established a contract contingency of $ $11,100,000 (10 percent) to be used to fund contract changes which may become necessary as the work proceeds. METRO’s project management plan incorporates a change control system which monitors available contingency and approves each change order. METRO’s CEO has overall responsibility for the use of contingency to deliver the project on-time and within the project budget. The proposed price and contingency is within the overall design-build portion of the Central Mesa Project budget and is within the Adopted METRO fiscal year 2012 Capital Budget and Five-Year Capital Forecast. METRO will report to the Board on a quarterly basis the project status including FTA PCGA budget, costs incurred to date and project cost forecast at completion. Should there need to be a change in the overall project budget, staff will bring to the Board for approval. Annual funding amounts and revenue sources will be identified in each fiscal year’s budget as the project progresses. RECOMMENDATION Staff requests that the RMC recommend that the Board authorize the CEO to:

• Execute a contract with Valley Transit Constructors Joint Venture to provide Design-Build Services for the Central Mesa LRT Extension in the total amount of $111,070,729

• Hold a contract contingency of $11,100,000 to be used at the CEO’s discretion for unanticipated changes

• Pay the two unsuccessful offerors a combined total of $442,830 in stipend fees.

AGENDA ITEM 6 TOD Working Group Update

AGENDA ITEM 6


Through: Stephen R. Banta, Chief Executive Officer

From: Wulf Grote, Director of Planning & Development


Re: Transit-Oriented Development (TOD) Activities and Working Group

PURPOSE In November 2011, the Rail Management Committee (RMC) requested that METRO staff provide an update of METRO’s TOD activities. Subsequently, the Rail Staff Working Group (RSWG) asked METRO to investigate the potential to create a TOD Working Group consisting of member agencies. The purpose of this memorandum is to present information regarding METRO’s TOD activities and the formation of a TOD Working Group. This agenda item is for information and discussion only; no action is required. BACKGROUND AND DISCUSSION METRO has a strong interest in TOD development as steward of the $1.4 billion light rail investment because TOD plays a crucial role in ridership success by focusing development and providing easy access to transit. TOD provides an opportunity to maximize the public’s return on investment by offering development supportive of a less auto-dependent lifestyle. METRO staff developed a TOD policy in 2006 with significant input from member cities. The policy identifies METRO as an important resource to support member cities in:

• Developing high-quality, intensive, mixed use development near light rail stations • Improving access to public transportation • Making communities more pedestrian and bicycle friendly • Creating attractive investment opportunities for the private sector

Since the creation of METRO, staff has assisted cities in updating their general plans, developing policies, modifying zoning and creating station area plans to assure that development in close proximity to light rail is compatible with the light rail investment. METRO actively supports member cities in their TOD efforts through peer city research such as: joint-development and public-private partnership (PPP) strategies, successful TOD projects around the nation and identifying potential funding opportunities.


METRO also plays an important role in several current regional TOD-related efforts, such as the Sustainable Community Working Group (SCWG), Phoenix’s station planning efforts funded through the U.S. Housing and Urban Development (HUD) Community Challenge Planning Grant, and the Maricopa Association of Governments (MAG) Designing Transit Accessible Communities and Sustainable Transportation Land Use Integration studies. The MAG studies and Phoenix planning efforts, in concert with a $20 million TOD affordable housing fund secured by the SCWG, demonstrate the region’s commitment to transit-related development. Additionally, METRO provides information related to the light rail system that supports TOD planning, including an inventory of city-owned remnant parcels, passenger ridership data by station, and potential TOD opportunity sites based on supportive land use planning efforts. A concept on the formation of a TOD Working Group was presented to the RSWG in February 2012. RSWG members were supportive of the plan to move forward and provided several good suggestions to improve the TOD Working Group’s role. The TOD Working Group would bring together transit planners, land use planners and economic development staff from member cities and regional agencies [e.g., MAG and Valley Metro/Regional Public Transportation Authority (RPTA)] to develop a cohesive policy regarding:

• Remnant parcels • Real estate acquisition and disposal • Land development • Entrepreneurial / revenue generating ventures • Joint-use partnerships

As an initial step, METRO plans to coordinate with participating cities and agencies to identify appropriate representatives with respective knowledge and experience to participate in the Working Group. A kick-off meeting is planned in March to define the TOD Working Group purpose, identify the appropriate structure, identify key responsibilities, and determine goals. It is proposed that the TOD Working Group initially meet on a monthly basis. At subsequent meetings this group will address issues such as identifying and prioritizing TOD related guidelines, strategies, programs, and objectives. Additionally, METRO will reach out to key regional agencies and stakeholder groups such as MAG and the (SCWG) to coordinate TOD-related initiatives. Additional activities will include inviting guest speakers with TOD expertise that include individuals from the developer community, national public agency and private consultant TOD planners, and staff from the Phoenix metropolitan region representing Housing, Community Development, Economic Development, and Planning Departments. The TOD Working Group will be tasked with developing aggressive near and long-term action plans to create TOD-related policies and plans for both rail and bus that have the


support of the METRO and RPTA Boards respectively. Ultimately, the adopted policies and plans will assist member cities in adopting local TOD-related policies. Based on the support of Federal funding over the last few years for projects that include sustainable and livable elements, the TOD Working Group will work to put METRO and the region in an excellent position to secure funds for future corridor planning and TOD planning efforts. The Working Group will provide the region with leverage through a regionally collaborative initiative, one that has been proven successful by peer transit systems with advanced TOD projects. FISCAL IMPACT There is no fiscal impact associated with this agenda item. RECOMMENDATION This item is for information and discussion only; no action is required.

AGENDA ITEM 7 Program Management / Construction Management Services

AGENDA ITEM 7


From: Stephen R. Banta, Chief Executive Officer


Re: Program Management/Construction Management (PM/CM) Services

PURPOSE In October 2011, the METRO Board of Directors (Board) authorized the METRO Chief Executive Officer (CEO) to execute a contract with the PB-Wong Joint Venture for PM/CM Services. The Joint Venture was selected for the contract, in part because of its demonstrated expertise in providing transit management consulting services. The purpose of this memorandum is to present information regarding METRO’s and Regional Public Transportation Authority’s (RPTA) use of the Joint Venture’s transit management consulting services. BACKGROUND AND DISCUSSION METRO and RPTA have entered into an employment agreement with a single CEO, effective March 1, 2012. The CEO is charged with the strategic planning related to the integration of the METRO and RPTA staff while, at the same time maintaining both METRO’s and RPTA’s Boards of Directors. METRO and RPTA anticipate that under the direction and supervision of the single CEO, certain cost-savings, efficiencies and streamlining of services can be achieved. The Joint Venture will assist the single CEO in determining the optimal organizational structure and staffing for the combined staff. The Joint Venture’s estimated costs and expenses will span the balance of fiscal year 2012 and the first several months of fiscal year 2013 and be absorbed within current, approved fiscal constraints. A Notice to Proceed has been issued to the Joint Venture. FISCAL IMPACT There is no fiscal impact associated with this agenda item. RECOMMENDATION This item is for information and discussion only; no action is required.

1:30 pm I March 7, 2012€¦ · 1:30 pm I March 7, 2012 101 N. 1st Ave. 10th Floor . Lake Powell...

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