2:00 pm I March 22, 2012 · The rebuild program proposed by Kinkisharyo, replaces the total glass panel with a combination of glass and fiberglass construction which will prevent

2:00 pm I March 22, 2012 101 N. 1st Ave.

10th Floor Lake Powell Conference Room

Phoenix, AZ 85003

March 15, 2012 To: Chairman Stanton and Members of the METRO Board of Directors From: Stephen R. Banta, Chief Executive Officer Date: March 22, 2012 Time: 2:00 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 located on the 2nd level of the parking garage across from the ticket handler booth. METRO Board (Board) 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 METRO Board 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 16, 2012 Board meeting are presented for review and approval. Please see information attached for Agenda Item 3 for additional information.

METRO Board of Directors Agenda March 15, 2012 Page 2 of 2

Item Action Requested

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

Stephen R. Banta will brief the Board on current light rail issues. Please see attached ridership information.

Regular Agenda

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

Action

Staff is requesting 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. METRO and RPTA Board Member Subcommittee Information and

possible action

The Board may discuss the process for selecting two Board members to serve on the METRO and RPTA Board Member Subcommittee and also decide the length of each member’s term. Please see information attached for Agenda Item 6 for additional information.

7. Program Management / Construction Management Services

Information

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 METRO Board Agenda Items Information

The Board 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 16, 2012 101 North First Avenue

13th Floor – Board Room Phoenix, Arizona

Board Members Present Mayor Greg Stanton, City of Phoenix – Chair Mike James, City of Mesa Councilmember Shana Ellis, City of Tempe Jamsheed Mehta, City of Glendale Councilmember Rick Heumann, City of Chandler

Others Present Blue Crawley Miranda Culver, City of Mesa Matthew Dudley, City of Glendale Chad Heinrich, City of Tempe

Greg Jordan, City of Tempe Bryan Jungwirth, RPTA Bob Reiss, Gannett Fleming Jeff Rosen

1. Call to Order

Chairman Stanton called the meeting to order at 2:42 p.m. Chairman Stanton introduced himself to everyone in the Board Room. He stated that he is glad to be part of the Board and honored to participate today and hopefully for a long time in the future.

2. Call to the Audience

Mr. Jeff Rosen stated that the last time he spoke to Councilman Simplot he told him about the unavailability of the seats on the light rail and now that there are new signs he does not have any problems. He sees a lot of hazards on the rail itself with smoking as well as skateboarding and bicycling on the tracks. Mr. Rosen also spoke to Councilman Simplot about ambassadors on the system educating people. He foresees there being a huge accident between the train and the pedestrian crossing from the sidewalk over the tracks.

Mr. Blue Crawley stated that the original design of the bicycle rack on the light rail vehicle (LRV) was different than it is now. He has difficulties getting his bike on and off and has to hold his bike which takes up more space; it should have been done the way it was supposed to.

METRO Board of Directors Meeting Minutes February 16, 2012 Page 2 of 7

Mr. Crawley stated that now that bus and rail are blending, he wishes that six months before it went to a vote (in 2004), you would have understood that bus and rail are supposed to be blended. Instead of stopping the Phoenix part of the extension at 19th Avenue and stopping at Rose Mofford, it should go to Metrocenter; the way it should have been. There is a bike tunnel near a canal in that location and rail in a larger tunnel would end up doing it right with them together. You maybe would have had bus sensitivity that at all your light rail stops you have ticket dispensers. The light rail transit centers don’t even have it.

Mr. Crawley stated that when he looks at the rail, he also sees that you need to be pushing further to go to a vote as soon as possible, make it bifurcated, and make it heavy rail, make it total county, get both systems functioning at the level that they could be and should be. Of the 28 communities how many already have the 18th century rail going through. Let’s get a better job done instead of stopping at Rose Mofford; it should have gone all the rest of the way. What is being done to change that? Mr. Crawley stated that he understands that the neighborhood said one thing, but if we did the planning correctly and had it going to where it should have been we would not have a circulator going through because part of what you’re trying to do with the multi mass transit system is to cut down on pollution.

3. Minutes

IT WAS MOVED BY COUNCILMEMBER ELLIS AND SECONDED BY JAMSHEED MEHTA AND CARRIED (COUNCILMEMBER HEUMANN ABSTAINED) TO APPROVE THE JANUARY 18, 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:

Mr. Banta congratulated Chairman Stanton for coming on board with METRO and that he has a stellar METRO Board to work with. METRO appreciates him being a part of it. Chairman Stanton stated that it was his honor.

TIGER IV Notice of Funding Availability (NOFA): Pre-applications are due on February 20 and final applications are due March 19. METRO is advancing the application for the Tempe Streetcar Project. There is $500 million available. METRO will be looking for partnerships with the Federal Transit Administration to advance the Streetcar Project.

President’s Budget: The President’s budget was released on February 13 and it included $20 million for the Central Mesa Extension. METRO is working closely with the City of Mesa to extend light rail 3.1 miles into Mesa. METRO appreciates the support from Mayor Smith, Board Member James, and City Manger Brady.


Average Fare Revenue and Ridership: The update will be provided in March.

Ridership: Continues to be a good story for METRO. Weekday ridership for January is 44,000. The projected ridership was 26,000 – close to the 20-year projected mark. Saturday and Sunday service is higher than most cities’ weekday service. METRO is servicing the events and venues as it was intended.

5. Consent Agenda

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

IT WAS MOVED BY COUNCILMEMBER ELLIS AND SECONDED BY COUNCILMEMBER HEUMANN AND UNANIMOUSLY CARRIED TO ACCEPT THE COMPREHENSIVE ANNUAL FINANCIAL REPORT AND SINGLE AUDIT ACT REPORT FOR THE PERIOD ENDED JUNE 30, 2011.

Regular Agenda

6. 2012 Federal Policy and Project Priorities

Mr. John Farry, Director of Community and Governmental Relations, stated that the handout provided to the Board Members outlines the priorities for METRO projects for the coming year as well as shares the successes of the METRO system and what the potential federal funding need would be.

Each year this list of project priorities is developed to communicate to the Arizona Congressional delegation related to the METRO system.

The Section 5339 discretionary program was established within SAFETEA-LU to provide federal funding for Alternative Analysis (AA) and environmental study projects. The projects that are potential candidates for discretionary grant funding in the coming year are Phoenix West, Glendale, South Central, Gilbert Road, and Rio Salado.

Section 5309 discretionary funding projects are New Starts projects. The projects that are candidates are the Central Mesa, Tempe Streetcar, and Phoenix West I-10 Transit Ramp.

The SAFETEA-LU reauthorization funding priorities include maintaining or increasing federal transit funding levels, maintaining transit’s share of federal surface transportation funding, the ability to fund operations, maintaining mode-neutral transportation funding, and to continue to maintain the direct allocation of federal funding to Metropolitan Planning Organizations (MPOs).


The SAFETEA-LU reauthorization New Starts/Small Starts looks for ways to streamline the approval process and reform the evaluation criteria. The economic development, sustainable land use, and environmental issues should be considered at the same weight as the cost effectiveness.

The current reauthorization extension expires on March 31. Senate Bill (S. 1813) is a 20-month extension and maintains the current funding levels. House Bill (H.R. 7) is a five-year extension and maintains current funding levels. The House bill would eliminate Mass Transit funding from Highway Trust Fund. Both bills were to be considered this week; however, it is delayed until the week of February 27. In the Senate there were over 100 amendments filed.

A long-term reauthorization bill is going to be difficult to enact in this election year. It is likely that short-term extensions with the existing program will continue.

The President’s fiscal year 2013 budget includes the six-year reauthorization at $476 billion, $50 billion “up front” transportation spending, $10.8 billion for transit, an increase New Starts/Small Starts program, and $20 million for Central Mesa Extension.

7. Light Rail Vehicle Door Replacement Program

Mr. Banta stated that as discussed in the past, METRO has experienced damage to the LRV doors. The damage has been contributed to the placement of the door open push button. A door modification program is being presented for Board’s review and approval which will mitigate some of the costs that it takes to keep LRVs in service and repair the doors in a timely basis.

Mr. John McCormack, Director of Finance and Administration, stated that the rebuild program is to address breakage that has occurred in the glass panel portion of the LRV door.

The rebuild program proposed by Kinkisharyo, replaces the total glass panel with a combination of glass and fiberglass construction which will prevent future breakage.

Over the first two and a half years of operations 310 of the glass door panels have been broken. Thru June 2011, $400,000 has been spent to repair 170 door panels. At that time an additional 140 panels needed repair. The repairs are costly and need to be performed off-site. Not doing the rebuild program is anticipated to cost in excess of $300,000 per year.

Breakage in the glass has typically occurred when the yellow door open push button is hit with excessive force.

In September of last year METRO presented photos of the door redesign to the Rail Management Committee and the Board. Comments received have been


generally favorable. One concern was raised regarding whether the new design would impact persons with disabilities. A focus group visited METRO’s Operations and Maintenance Center and evaluated the new design. The consensus of the group was the new door design was acceptable.

Under the rebuild program, the prototype was designed and has been tested since last September. The program will be contracted with Gaffoglio Metalcrafters to rebuild the 49 LRVs for a total of $1.7 million. Proposed funding for the program is a combination of remaining capital lease funds in the amount of $455,000 which are dedicated to LRV construction. METRO also has an operating surplus in fiscal year 2011 and $1,186,000 of that surplus is available for this effort. We are proposing to utilize those funds and budget another $96,000 into fiscal year 2013 budget to complete the program.

METRO recognizes that this is a significant investment. 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. Alternative funds including CMAQ and PM could be used to apply to this program.

The Rail Management Committee recommended approval of this program in February.

Councilmember Heumann asked about the warranty on the doors. Mr. Banta stated that the warranty is usually negotiated with the contractor on workmanship parts, and materials for a period of time. Metalcrafters also produces LRV doors throughout the industry and their doors are in service throughout the country.

Mr. James stated that it is unfortunate for the design flaw and that we should cut our losses and move forward.

IT WAS MOVED BY COUNCILMEMBER HEUMANN AND SECONDED BY MIKE JAMES AND UNANIMOUSLY CARRIED TO 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 BOARD APPROVED 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.

METRO Board of Directors Meeting Minutes February 16, 2012 Page 6 of 7 8. RPTA and METRO Board Member Working Group Update

AT 3:05 P.M. IT WAS MOVED BY COUNCILMEMBER HEUMANN AND SECONDED BY COUNCILMEMBER ELLIS AND UNANIMOUSLY CARRIED TO ENTER INTO EXECUTIVE SESSION ACCORDING TO A.R.S. 38-431.03(A)(3) TO TAKE LEGAL ADVICE RELATED TO AGREEMENTS ASSOCIATED WITH THE HIRING OF A SINGLE CHIEF EXECUTIVE OFFICER FOR METRO AND THE RPTA.

The Board reconvened at 3:48 p.m.

9. Executive Session Action Items

IT WAS MOVED BY COUNCILMEMBER HEUMANN AND SECONDED BY MIKE JAMES AND UNANIMOUSLY CARRIED TO:

• AUTHORIZE ITS CHAIRMAN TO ACCEPT AND RATIFY THE EMPLOYMENT AGREEMENT BY AND BETWEEN THE RPTA AND STEPHEN R. BANTA FOR MR. BANTA TO SERVE AS THE SINGLE CHIEF EXECUTIVE OFFICER FOR METRO AND RPTA, EFFECTIVE MARCH 1, 2012

• AUTHORIZE ITS CHAIRMAN TO SIGN THE INTERGOVERNMENTAL AGREEMENT WITH RPTA PROVIDING FOR A SINGLE CHIEF EXECUTIVE OFFICER AND THE PRESERVATION OF BOTH THE RPTA AND METRO BOARDS OF DIRECTORS

• AUTHORIZE ITS CHAIRMAN TO SIGN THE AMENDED INTERGOVERNMENTAL AGREEMENT WITH RPTA PROVIDING FOR THE HIRING AND SUPPORT PERSONNEL

• AUTHORIZE ITS CHAIRMAN TO SIGN THE SECOND AMENDMENT TO THE EMPLOYMENT AGREEMENT BETWEEN METRO AND ITS CHIEF EXECUTIVE OFFICER, STEPHEN R. BANTA, SUSPENDING THE EMPLOYMENT AGREEMENT.

Chairman Stanton congratulated Mr. Banta. Mr. Banta thanked the Board for their confidence.

10. Future METRO Board Agenda Items

Councilmember Heumann stated that as part of the above acted upon action a set of Goals and Objectives need to be developed and further discussions need to take place at the next meeting with the RPTA and METRO Board Member Working Group.


Chairman Stanton stated that the RPTA and METRO Board Member Working Group has been working together to get this to this point. There is ongoing work to fulfill the contractual agreements and to set goals for the joint Chief Executive Officer. The Chairman asked for volunteers and asked if the Working Group should continue to assist with this effort. Councilmember Heumann stated that the Working Group has done an excellent job.

Chairman Stanton stated that he will not be serving on the Working Group because of the unique voting situation with quorum issues. He suggested that City of Phoenix staff be involved and add value to the process. The existing Working Group will continue the process with the help of City of Phoenix staff and any other staff that wants to be involved in coming up with specific goals to fulfill the contract requirements.

11. Adjournment

The meeting adjourned at 3:51 p.m.

AGENDA ITEM 4 Chief Executive Officer’s Report

Total Avg Weekday Avg Saturday Avg Sunday/Holiday

January 1,172,347 44,087 32,320 23,048

February 1,139,153 44,021 34,357 24,263

March

April

May

June

July

August

September

October

November

December

2011 2012 Change

January 1,074,803 1,172,347 +8.3%

February 1,080,821 1,139,153 +5.1%

March

April

May

June

July

August

September

October

November

December

Ridership 2012

2011 vs. 2012 Total Ridership

Total % Total87,760 7.70% 158,184

Ridership By City & Day for February 2012 Total Ridership By City

DayMesa Tempe Phoenix Total Mesa Tempe Phoenix

Total Total Total Total Total % Total % Total %

Wednesday, February 01, 2012 3,939 13,740 28,089 45,768 110,983 9.74% 335,670 29.47% 692,500 60.79%Thursday, February 02, 2012 3,806 14,093 26,797 44,696

Weekday Ridership By CityFriday, February 03, 2012 4,928 14,327 33,533 52,788Saturday, February 04, 2012 2,818 7,910 18,725 29,453 Mesa Tempe Phoenix

Sunday, February 05, 2012 1,672 5,331 11,064 18,067Total % Total % Total % Total Avg/DayMonday, February 06, 2012 4,112 12,499 25,678 42,289

84,262 9.57% 260,627 29.60% 535,523 60.83% 880,412 44,021Tuesday, February 07, 2012 5,229 14,047 27,741 47,017Wednesday, February 08, 2012 4,387 12,659 27,013 44,059

Saturday Ridership By CityThursday, February 09, 2012 4,003 12,118 24,791 40,912Friday, February 10, 2012 4,494 12,581 28,164 45,239 Mesa Tempe Phoenix

Saturday, February 11, 2012 5,098 9,356 25,073 39,527Total % Total % Total % Total Avg/DaySunday, February 12, 2012 3,034 6,373 14,942 24,349

14,756 10.74% 37,124 27.01% 85,547 62.25% 137,427 34,357Monday, February 13, 2012 4,080 12,656 26,199 42,935Tuesday, February 14, 2012 4,103 13,472 27,088 44,663

Sunday/Holiday Ridership By CityWednesday, February 15, 2012 4,309 13,709 27,718 45,736

%

Thursday, February 16, 2012 3,532 12,655 23,062 39,249 MesaFriday, February 17, 2012 3,825 12,211 26,756 42,792

Total Total % Total Avg/Day

Tempe Phoenix Total

58.88% 121,314Saturday, February 18, 2012 3,560 10,192 22,635 36,387

11,965

Total %

24,263Sunday, February 19, 2012 2,234 8,182 15,597 26,013 9.86% 37,919 31.26% 71,430(H) Monday, February 20, 2012 3,241 12,440 17,873 33,554

Tuesday, February 21, 2012 5,316 14,340 27,501 47,157Wednesday, February 22, 2012 4,270 13,403 29,018 46,691

Thursday, February 23, 2012 3,522 11,113 22,168 36,803Friday, February 24, 2012 4,730 13,194 28,658 46,582

Saturday, February 25, 2012 3,280 9,666 19,114 32,060Sunday, February 26, 2012 1,784 5,593 11,954 19,331Monday, February 27, 2012 3,622 11,820 23,964 39,406Tuesday, February 28, 2012 4,365 13,582 26,051 43,998

Wednesday, February 29, 2012 3,690 12,408 25,534 41,632Total 110,983 335,670 692,500 1,139,153Total Ridership By Day Of Week

% Total %

Sunday Monday Tuesday Wednesday Thursday Friday

161,660 14.19% 187,401

Saturday

% Total % Total % Total16.45% 137,427 12.06%

Total %13.89% 182,835 16.05% 223,886 19.65%

AGENDA ITEM 5 Central Mesa LRT Extension

Design-Build Services Contract

AGENDA ITEM 5

To: Chairman Stanton and Members of the METRO Board of Directors

Through: Stephen R. Banta, Chief Executive Officer

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

Date: March 15, 2012

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

PURPOSE The purpose of this memorandum is to request 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.

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)

METRO Board of Directors Memo March 15, 2012 Page 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) 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. RAIL MANAGEMENT COMMITTEE CONSIDERATION On March 7, 2012, the Rail Management Committee (RMC) recommended 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; manage a contract contingency of $11,100,000; and pay the two unsuccessful offerors a combined total of $442,830 in stipend fees. RECOMMENDATION Staff requests 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

• Manage a contract contingency of $11,100,000 • Pay the two unsuccessful offerors a combined total of $442,830 in stipend

fees.

AGENDA ITEM 6 METRO and RPTA Board Member

Subcommittee

AGENDA ITEM 6


From: Stephen R. Banta, Chief Executive Officer


Re: METRO and RPTA Board Member Subcommittee

PURPOSE The purpose of this memo is to provide information to the Board of Directors so they may discuss the process for selecting two Board members to serve on the METRO and RPTA Board Member Subcommittee. The Board may also take action related to this item. BACKGROUND/DISCUSSION At the February 16, 2012 Board meetings of Valley Metro RPTA and METRO Light Rail, the respective Boards agreed to enter into an Intergovernmental Agreement regarding the Single Chief Executive Officer. Sections 4 and 5 of this agreement (set forth below) state that a subcommittee consisting of four total members (two from each Board) be established. Section 4: Conflict Resolution The Parties to this Agreement acknowledge that a single executive may serve simultaneously as CEO for both pursuant to Section 4.1 of the Parties’ current HR Management intergovernmental agreement, as amended. With the CEO functions consolidated in this manner, the Parties recognize the possibility of conflict arising if the CEO is assigned a direction or demand from the RPTA Board that conflicts with, or otherwise makes it impossible to perform, a direction or demand from the METRO Board. Because of this possibility, and in order to timely and appropriately address any such conflicts if they do arise, the Parties agree to create a subcommittee of their respective Boards of Directors, as necessary and as follows, to resolve actual or prospective disputes or conflicts between the Boards, regardless of the kind or nature of such disputes or conflicts:

a. The subcommittee will be composed of four members, two members from each Party to this Agreement, appointed at such time as the subcommittee is formed, and each member’s service is subject to removal or replacement on the subcommittee by a majority vote of its respective Board;


b. A meeting of the subcommittee shall be called at the request of either Party to this Agreement, with appropriate notice to the other Party, and the CEO may call a meeting of the subcommittee in any matter where either:

i. the Parties have provided conflicting direction to the CEO, or ii. the CEO reasonably believes that the Parties to this Agreement are in conflict.

c. The subcommittee shall review disputes between the Parties and make

recommendations to the Parties’ Boards related to potential resolution of such disputes. Nothing herein shall give the subcommittee authority to resolve disputes on behalf of the Parties, but nothing herein shall prevent the Parties’ Boards from providing the subcommittee this authority on a case-by-case basis, if deemed appropriate by the Parties’ Boards.

Section 5: CEO Evaluation And Goal Setting 1. Evaluation

RPTA and METRO agree that the subcommittee referenced in Section 4 of this IGA will, with the input of the CEO, review and evaluate the performance of the CEO annually. As part of the review and evaluation process the subcommittee will prepare a summary report of its findings to be shared with both the RPTA and METRO boards for discussion, review and approval.

2. Goal Setting

Section 4C of the attached CEO Agreement requires RPTA and METRO to set Employee Performance Incentive Compensation based on the CEO’s successful achievement of specific and measurable goals. RPTA and METRO direct that the subcommittee referenced in Section 4 of IGA will be responsible for timely meeting with the CEO and, in conjunction with him, establishing annual goals consistent with the Employment Agreement. Establishing annual goals can include but is not limited to establishing the number of annual goals, consistency of goals, value of each goal and budgetary considerations for each goal. Upon establishing annual goals the subcommittee will provide RPTA and METRO with the goals and other relevant information for approval. RPTA and METRO also direct that the subcommittee will also timely meet and evaluate whether and, if so, to what extent each goal has been successfully achieved. The determination of which goals has been successfully achieved including but not limited to the value of each goal will then be provided to RPTA and METRO for approval.

Under these provisions of the Single CEO IGA, the subcommittee is charged with:

• Resolving conflicting direction that the CEO may receive from the RPTA Board and the METRO Board.

• Establishing recommended annual goals for the CEO that are subject to the approval of the RPTA Board and the METRO Board.


• Providing the initial evaluation of the CEO’s achievement of assigned goals with such evaluation subject to the approval of the RPTA Board and the METRO Board

FISCAL IMPACT There is no fiscal impact associated with this item. RECOMMENDATION The Board of Directors may discuss the process for selecting two Board members to serve on the METRO and RPTA Board Member Subcommittee and possible length of term for each member. The Board may also take action related to this item.

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. RAIL MANAGEMENT COMMITTEE CONSIDERATION On March 7, 2012, staff presented information to the Rail Management Committee (RMC) regarding METRO’s and Regional Public Transportation Authority’s (RPTA) use of the Joint Venture’s transit management consulting services. RECOMMENDATION This item is for information.

Documents

2:00 pm I March 22, 2012 · The rebuild program proposed by Kinkisharyo, replaces the total glass panel with a combination of glass and fiberglass construction which will prevent