FIVE-YEAR CAPITAL PROGRAM AND OPERATING FORECAST FY 2010 – FY 2014 Adopted June 17, 2009 Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO June 2009 Valley Metro Rail, Inc. Phoenix, Arizona Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 (July 1, 2009 through June 30, 2014) Board of Directors Chairman – Councilman Tom Simplot, Phoenix Mayor Bob Barrett, Peoria Mayor Boyd Dunn, Chandler Mayor Hugh Hallman, Tempe Mayor Scott Smith, Mesa Mayor Elaine Scruggs, Glendale Executive Management Team Richard J. Simonetta, Chief Executive Officer Brian Buchanan, Design and Construction Director Larry Engleman, Safety, Security, and Quality Assurance Director John Farry, Community Relations Director Wulf Grote, Project Development Director Jay Harper, Operations and Maintenance Director Mike Ladino, General Counsel John McCormack, Finance and Administration Director Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO i June 2009 Table of Contents METRO Organization .................................................................................................... 1 METRO Vision and Mission .......................................................................................... 2 METRO Services............................................................................................................ 3 Five-Year Budget Summary ......................................................................................... 5 FY 2009 Accomplishments ........................................................................................... 8 Annual Goals and Objectives ....................................................................................... 9 Five-Year Capital Program ......................................................................................... 14 All Capital Projects ........................................................................................... 15 CP/EV LRT Project ............................................................................................ 18 Northwest Extension Project ........................................................................... 22 Future High Capacity Transit Projects ........................................................... 26 Five-Year Operating Forecast .................................................................................... 30 Uses of Funds ................................................................................................... 30 Sources of Funds ............................................................................................. 31 CP/EV Operations & Maintenance Assumptions ........................................... 33 Operations & Maintenance Cost Estimate...................................................... 35 Projected Ridership & Revenues .................................................................... 36 Project Development Planning Support ......................................................... 37 METRO Five-Year Staffing Plan....................................................................... 39 Appendix A - Budget Process .................................................................................... 40 Appendix B - Listing of CNPAs .................................................................................. 42 Appendix C - Glossary of Terms and Acronyms ...................................................... 44 Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO ii June 2009 METRO ORGANIZATION Valley Metro Rail, Inc. (METRO) is a public non-profit corporation whose members are the cities of Chandler, Glendale, Mesa, Peoria, Phoenix, and Tempe. METRO’s mission is to manage the design, construction, and operation of the Light Rail Transit (LRT) System within the Metropolitan Area. The Board of Directors includes the mayors of the member cities or their designated representatives. The Board of Directors establishes overall policies for management and administration of the LRT System, provides oversight over the design, construction and operation of light rail, and oversees the receipt and disbursement of funds and grants from federal, state, local, and other funding sources. The Rail Chief Executive Officer (CEO) is responsible for the day-to-day management of the organization. The CEO plans, coordinates, and directs the activities of the Management Staff in carrying out the organization’s responsibilities. The Management Staff includes a limited number of core agency employees, augmented by consultant personnel with specialized expertise and experience in light rail planning, design, construction, and operations on a project-by-project basis. The following chart depicts the policy organization for Valley Metro Rail and the relationships to key stakeholders. Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 1 June 2009 METRO VISION AND MISSION Vision: “METRO will be recognized as a trusted and respected community partner and visionary leader that provides a premier regional rail transit system with a commitment to excellence and safety, which provides value, enhances quality of life and is a point of pride for our community.” Mission: “METRO provides a premier regional rail system that enhances mobility and strengthens the viability of our community.” Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 2 June 2009 METRO Five-Year Organizational Goals: • • • • Operate a safe, efficient, customer-oriented, reliable METRO system. Plan, design, and construct the rail/high capacity transit element of the Regional Transportation Plan. Strengthen public confidence in METRO as a premier regional rail system. Maintain sound relationships with public and private stakeholders in the METRO system. METRO SERVICES METRO was formed to plan, design, construct, and operate the METRO Light Rail Transit System. The Approved Light Rail Alignment (the initial 20-mile segment) was completed on time and commenced serving passengers in Phoenix, Tempe, and Mesa in December 2008. An additional 37 miles of High Capacity Transit, to be funded by local taxes, Proposition 400 revenues, and Federal Funds, is planned for future years. See “Future Projects” for further information. Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 3 June 2009 Project Development: The proposed light rail/ high capacity transit system will include over 57 mile of high capacity transit service in four cities within the next 20 years. Before any specific transit corridor is initiated, MERO will study and configure the system to better understand how corridors connect, determine facility requirements, and define operating parameters. System planning is the first step in developing the high capacity transit. It is followed by the corridor planning for individual corridors. Once technologies and alignments are determined in each corridor, preliminary engineering is engaged. A key objective during project development is to define all aspects of each high capacity transit corridor project, identify the appropriate transit technology, the alignment, stations, park-and-rides, maintenance facilities, traction power substations, and bus interface. METRO staff is committed to working closely with policy makers, public agencies, businesses, community stakeholders, utility companies to assure an early and complete understanding of their needs and issues, before design begins. METRO is responsible to assure that adequate funding is in place to implement, maintain and operate the light rail program. METRO staff works closely with federal, state, regional and local agencies that provide present and future funding for the light rail system. METRO, in coordination with all affected agencies, annually updates the LRT Life Cycle Program, which defines light rail projects, funding, and schedule. Finally, METRO assists with light rail station area planning by actively engaging to support member cities’ efforts to facilitate Transit Oriented Development (TOD). Design & Construction Management: METRO is responsible for the design and construction of regional rail transit system. Efforts include design for guideway, passenger stations, LRV traction power, signals and communications systems and maintenance facilities. METRO coordinates right-of-way acquisitions and public and private utility relocations to make way for construction. Construction contract specifications are developed and competitive procurements executed. Construction is managed to meet planned budget and schedule requirements. Emphasis is placed on delivering a high quality product focused on meeting the long-term needs to operate and maintain systems for rail passenger services. Operations & Maintenance: METRO is responsible for overseeing the day-to-day operations of the METRO system with the ultimate goal of providing a safe, reliable and customer focused transit system. In December of 2008, revenue operations began and METRO now provides comprehensive management of rail passenger services including safety, security, public information and marketing, risk management, fare collection, finance, transportation service delivery and LRT systems maintenance. METRO is self-performing core systems maintenance including track, power, signals and communication systems. METRO has contracted services for light rail vehicle operators, vehicle maintenance, and facilities maintenance. Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 4 June 2009 FIVE-YEAR BUDGET SUMMARY Uses of Funds: The high-level details of the overall operating and capital budget for Valley Metro Rail is attached as Table 1, Budget Summary. The cumulative uses of funds, FY 2010 through FY 2014, may be summarized as follows: Agency Operating Budget 0.6% CP/EV LRT Project 1.8% Project Development Planning 2.4% LRT Operations & Maintenance 20.8% Finance Costs 5.0% CNPA 0.1% 14 LRV's / Systemwide Imp. 2.1% Non-Prior Rights Utilities 2.2% PTF Financing Costs 3.2% Northwest Extension Phase 1 24.6% Northwest Phase 2 0.6% I-10 West 8.3% Glendale 6.6% Tempe South 9.2% Central Mesa 12.4% Chart 1 – Uses of Capital & Operating Funds FY 2010 through FY 2014 Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 5 June 2009 Sources of Funds: The cumulative sources of funds, FY 2010 through FY 2014, may be summarized as follows (see Table 1, Five-Year Capital Program and Operating Forecast Summary): CMAQ / STP 7.5% Member Cities 10.9% FTA Section 5339 0.1% MAG / RPTA 0.6% All Others 0.0% Regional PTF Revenue 2009 ADOT Forecast 31.9% FTA Section 5309 31.5% LRT Fares 5.6% Rail PTF Reserves and Borrowing Funds 11.9% Chart 2 – Sources of Capital & Operating Funds FY 2010 through FY 2014 Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 6 June 2009 Table 1 - Five-Year Capital Program and Operating Forecast Summary ($,000) FY 2010 through FY 2014 Pre-2010 * 2010 2011 2012 2013 2014 Inception to Date Cumulative 2010 - 2014 USES OF FUNDS CP/EV LRT Project Finance Costs CNPA 14 LRV's / Systemwide Imp. Non-Prior Rights Utilities Northwest Extension Phase 1 Central Mesa Tempe South Glendale I-10 West Northwest Phase 2 PTF Financing Costs Subtotal - Capital LRT Operations & Maintenance Project Development Planning Agency Operating Budget Total Uses $ 1,283,950 66,586 121,115 40,050 77,713 64,025 1,653,440 $ 1,653,440 $ 15,148 24,738 1,012 2,229 10,616 83,268 927 939 971 5,200 145,047 33,733 12,799 982 192,561 $ 709 20,994 359 9,545 72,282 7,695 5,468 1,604 4,070 122,727 34,914 3,542 957 162,139 $ 386 61,007 20,641 12,269 4,869 4,367 103,540 36,136 2,702 984 $ 143,362 $ 6,413 27,052 18,773 21,821 30,989 1,825 4,993 111,866 40,001 1,535 1,015 $ 154,417 $ 16,424 56,226 45,835 38,070 37,114 3,760 10,283 207,712 43,410 1,106 1,049 $ 253,277 $ 1,299,807 112,318 122,127 59,448 97,874 286,995 112,541 83,283 59,890 75,548 5,586 28,913 2,344,331 188,193 21,684 4,987 $ 2,559,195 $ $ $ $ $ $ $ 15,857 45,732 1,012 19,398 20,161 222,970 112,541 83,283 59,890 75,548 5,586 28,913 690,892 188,193 21,684 4,987 905,756 SOURCES OF FUNDS Phoenix Tempe Mesa Glendale Chandler Peoria Scottsdale MAG / RPTA All Others Subtotal Regional PTF Revenue Forecast Rail PTF (Reserve) / Borrowing LRT Fares FTA Section 5309 FTA Section 5339 CMAQ / STP Total Sources $ 754,048 201,902 41,483 1,286 998,718 663 (26,459) (7,231) 1,420 50 84 50 1,000 (30,424) 25,860 (9,263) (2,911) 1,461 50 50 50 1,000 16,297 182,808 18,713 50,526 29,106 53,046 21,897 57,020 (17,694) 61,584 (1,737) 66,408 76,111 471,391 126,396 8,985 9,300 9,625 10,828 12,182 50,920 127,800 950 5,618 134,368 192,561 54,000 7,600 61,600 162,140 11,331 20,301 31,632 $ 143,362 31,000 17,159 48,159 $ 154,417 61,500 17,310 78,810 $ 253,277 684,700 950 122,120 807,770 $ 2,559,195 399,068 54,132 453,200 $ 1,653,440 56,283 4,153 425 767 50 50 50 1,000 62,778 19,018 8,372 1,613 5,430 50 50 50 1,000 35,583 (834) 8,651 1,667 9,131 50 50 50 1,000 19,766 855,037 187,354 35,047 18,210 250 284 250 5,000 1,286 1,102,718 $ 100,990 (14,547) (6,436) 18,210 250 284 250 5,000 104,000 288,583 107,683 50,920 285,632 950 67,988 354,570 905,756 * "PRE 2010" Reports cumulative capital costs projected through 6/30/2009 Note: Cost and revenues reported on accrual basis. Negative Sources of Funds reflect reimbursements to Member Cities for federal grant funding and Regional PTF revenues forecasted to fund Regional Assets. Regional PTF Revenues are from the February 2009 ADOT revenue forecast. The Rail PTF (Reserve) / Borrowing represents forecasted annual reserve at FYE 2009 and future funding requirements in excess of the expected sales tax revenue Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 7 June 2009 FY 2009 ACCOMPLISHMENTS • METRO opened on time and within budget – December 27, 2008 o Over 150,000 rides on opening weekend without incident o Additional 150,000 rides during free fare period leading up to revenue service date of January 1, 2009. • METRO rides exceed projections for First Quarter of revenue service o Projected average weekday rides – 26,000 o Actual average weekday rides for the First Quarter – 33,454 • METRO Saturday service is exceeding expectations o Projected average Saturday rides – 20,800 o Actual average Saturday rides for the First Quarter – 30,498 • Central Phoenix/East Valley (CP/EV) total project construction safety exceeded industry standards: o 5.6 Million hours worked o Construction lost time rate 1.3 vs. 5.30 National Standard o Construction lost time rate 0.1 vs. 2.20 hrs/100 National Standard • Implementation of a safety awareness campaign to ensure safety during the testing period and the implementation of revenue service that included: o Production and distribution of a driver safety video o Production of a safety advertising campaign in English and Spanish generating 37 million impressions o Conducted outreach and training events focused solely on accessibility and light rail safety for persons with disabilities • Established Risk Management policies and procedures to prepare for passenger operations including establishment of Self Insurance Reserve Trust Fund • Prepared and facilitated execution of agreements with METRO Member Cities: o Master Funding Agreements, Security Agreements, Conduct Ordinances • Successfully completed Procurement Systems Review with City of Phoenix / Federal Transit Administration (FTA) (begun in early 2007) • Pursued and established advertising revenue potential with NBA (All-Star Game) • Continued final design for the 3.2 mile Northwest Extension Light Rail Project with over the shoulder review by the Construction Manager at Risk firm • Significant progress was made on Alternatives Analysis for three future high capacity transit corridors including Central Mesa, I-10 West and Tempe South Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 8 June 2009 o Received federal section 5339 grant funding commitments of $1.568 million to fund the AA studies and obtained a follow-up commitment for another $950,000 discretionary federal funds to assist with MAG and RPTA activities related to METRO’s AA studies Awards Received by METRO: • Best of the Best – Transportation - Engineering News Record • AMCA Public Service Award – 2006 • APWA AZ Chapter – Public Works Project of the Year • Associated Minority Contractor’s of America (AMCA) - Project of the Year Award • Associated Minority Contractors of America Employer of the Year – 2008 • Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association of the United States and Canada – 2008 • Dreamer - Best Project in Downtown Phoenix Area Award – 2008 • FTA/FHWA Transportation Planning Excellence Award (for Transportation and Land Use Integration) – 2004 • International Right of Way Association (IRWA) - TOP 10 North American Infrastructure Projects • Southwest Contractor Awards – Arizona Best of 2008 in Transportation – Line Section 5 and Engineering Design – Tempe Town Lake Bridge • WTS - Innovation and Transportation Award • WTS Employer of the Year Award – 2005 and 2008 - Community Service Award - ANNUAL GOALS AND OBJECTIVES (FY 2010 THROUGH FY 2014) Project Development Division Goals: • Complete environmental monitoring, analysis and reporting for the initial 20-mile LRT project. Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 9 June 2009 • Resolve the proper location for a high capacity transit investment to serve Glendale and west Phoenix • Establish a Light Rail/High Capacity Transit system configuration for high capacity transit corridors in the Regional Transportation Plan (RTP) • Determine the Locally Preferred Alternative and receive Board approval for future high capacity transit corridors in the RTP o Central Mesa o I-10 West o Tempe South • Implement an effective agency-wide Geographic Information System • Work with FTA to develop a program agreement for funding of future corridor projects • Actively participate in and provide management assistance for regional transit planning studies, such as the MAG Regional Transit Framework Study, MAG Commuter Rail studies, and RPTA BRT studies • Support city efforts to encourage transit oriented development and work with cities to develop TOD opportunities • Prepare planning studies for potential future transit corridors as requested by METRO member agencies (e.g. Peoria, Scottsdale). Design & Construction Division Goals: • Support operation of the initial 20 mile operating segment • Closeout all contracts related to the CP/EV Project • Begin and complete construction on the Northwest Extension utilizing the CM@R delivery method. • Implement alternative delivery methods to construct future corridors. • Develop and implement capital project cost estimating standards and 3rd party plan review procedures. Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 10 June 2009 Operations & Maintenance Division Goals: • Deliver rail operational service within budget • Achieve or exceed LRV mean-time-between-failures’ objective. • Adhere to FTA compliant Drug and Alcohol Testing Program for all O&M Employees. • Scrutinize methods to achieve cost savings and efficiencies within O&M. • Ensure compliance with Operation and Maintenance Agreements and update as necessary. • Continue efforts to ensure seamless bus/rail service operations. • Monitor key performance indicators which measure safety, efficiency and reliability of the METRO System. • Scrutinize contractors to ensure fiscal and performance compliance. Community Relations Division Goals: • Implement marketing strategy and safety campaigns for continued light rail construction, vehicle testing, and revenue operations startup. • Continue to foster relationships with the business and residential communities related to light rail construction, system testing, and revenue operations. • Ensure cooperative relationships are maintained with METRO member cities and regional stakeholders. • Work effectively with the FTA and Congress to maximize federal funding for rail extensions. • Maintain positive relationships with the media resulting in objective news coverage. Legal Services Division Goals: • Maintain lawful, fair and cost-efficient procurement practices to support METRO’s passenger operations, future planning, corporate and construction needs. Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 11 June 2009 • Provide on-going legal advice to Senior METRO management in the areas of risk management, litigation avoidance, statutory compliance and corporate governance. • Manage and fine-tune the Owner Controlled Insurance Program as METRO’s operational experience develops. • Achieve full realization of the DBE or other applicable socio-economic programs as METRO continues to grow and expand. • Streamline the delivery of in-house legal services so as to reduce the overall cost to METRO. • Strengthen internal controls; respond promptly to audit oversight findings. • Maintain compliance with FTA requirements and best practices in order to better position METRO for future funding opportunities. Finance and Administration Division Goals and Objectives: • Manage financial reporting and controls system to deliver CPEV LRT and Northwest Extension projects on-time and within budget. CPEV Close-out project objectives Continue reporting to meet FTA and Member City requirements. Provide support and promote prompt contract close-out Expedite Federal Grant receipts NW Extension project objectives Manage Project Change Control Process & Reporting Develop staffing cost controls Coordinate project funding with Phoenix and RPTA Bond Funding • Develop annual budget and five-year capital and operating forecasts integrated with Member City objectives and funding, Transit Life Cycle Plan and Regional Transportation Plan. • Manage all Financial aspects of Rail Operations Costs o Work Order cost system ƒ Manage accurate labor and material costs ƒ Maximize Warranty recoveries o Inventory Cost reporting o Contract control management ƒ Audit monthly billings ƒ Identify cost savings and initiate actions to reduce cost Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 12 June 2009 • Manage Fare Revenue and Ridership accounting controls o Hold Contractors accountable to improve equipment and services o Develop written routines to improve cash controls o Fully implement DILAX ridership reporting system • Maintain PCI compliance • Complete NTD reports accurately and On-time • Complete full Implementation of Sage accounting system to standardize financial reporting and enhance monthly reporting to Member Cities for Rail Operations, Agency Operating Costs and capital projects. Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 13 June 2009 FIVE-YEAR CAPITAL PROGRAM – FY 2010 THROUGH FY 2014 Capital projects included in the five year program include: • • • Central Phoenix / East Valley (CP/EV) – the initial 20-mile METRO spanning Phoenix, Tempe and Mesa Northwest Extension – 5 mile alignment in Phoenix with 3.2 mile Phase I proceeding north and terminating in the vicinity of Dunlap Avenue and 25th Avenue and Phase II continuing 1.8 miles north to vicinity of Metro Center. Future LRT Extensions: Central Mesa – 2.7 mile alignment extending eastbound to downtown Mesa; Tempe South – 2.0 mile alignment extending southward in the vicinity of Rural Road to the Superstition Freeway; Glendale Extension – 5.0 mile alignment westward to downtown Glendale; I-10 West – 11.0 mile alignment from downtown Phoenix westward to the vicinity of 79th Avenue. METRO is currently in alternative analysis for additional high capacity transit corridors (extensions to CP/EV LRT), developing an overall systems configuration plan, and is also managing Concurrent Non-Project Activities (CNPA), in connection with the construction closeout of CP/EV LRT. Costs for the alternative analyses, systems studies and CNPA are part of the Proposed FY 2010 Operating and Capital Budget. The Capital Program report is a multiple year (five fiscal years) forecast of the capital projects managed by Valley Metro Rail. Costs and revenues are reported on an accrual basis. Actual cash flow impacts may lag pending receipt of contractor billings and receipt of federal funding. Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 14 June 2009 All Capital Projects - Uses of Funds: Valley Metro Rail currently has a number of transit projects in various stages of planning, design or construction. The overall uses of funds associated with these projects and activities are projected to be $2.3 billion through the five-year planning horizon. These uses of funds are summarized as follows: Inception through FY 2014 CNPA 5.2% NPR Utilities 4.2% 14 LRV's 2.5% Tempe South NW Ext Phase 1 I-10 West 12.2%Central Mesa 3.6% Glendale 3.2% 4.8% 2.6% Systemwide Improvements 0.1% PTF Financing 1.2% Finance Costs 4.8% NW Phase 2 0.2% CP/EV LRT Project 55.4% Chart 3 – All Capital Project Uses of Funds – Inception through FY 2014 Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 15 June 2009 All Capital Projects - Sources of Funds: Funding is derived from three primary sources: Member Cities’ Taxes and Bonds, Regional Sales Taxes (Public Transportation Fund), and Federal Grants. These sources of funds are summarized as follows (see also Table 2, Five-Year Capital Program / All Projects): Inception through FY 2014 All Others 0.1% Glendale 0.6% Regional PTF 25.0% Mesa 1.2% Tempe 6.3% Phoenix 32.4% CMAQ 5.2% FTA Sec 5309 29.2% Chart 4 – All Capital Projects Sources of Funds -- Inception through FY 2014 Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 16 June 2009 Table 2 - Five-Year Capital Program / All Projects ($,000) FY 2010 through FY 2014 USES OF FUNDS CP/EV LRT Project Northwest Extension Phase 1 Central Mesa Tempe South Glendale I-10 West Northwest Phase 2 Subtotal 14 LRV's CNPA Non-Prior Rights Utilities Systemwide Improvements PTF Financing Costs Total Capital Costs Pre-2010 2010 2011 2012 2013 2014 1,350,536 64,025 1,414,561 40,050 121,115 77,713 1,653,440 39,886 83,268 927 939 971 125,990 1,636 1,012 10,616 593 5,200 145,047 21,703 72,282 7,695 5,468 1,604 108,752 9,545 359 4,070 122,727 61,007 20,641 12,269 4,869 98,787 386 4,367 103,540 6,413 27,052 18,773 21,821 30,989 1,825 106,873 4,993 111,866 56,226 45,835 38,070 37,114 3,760 181,005 15,897 527 10,283 207,712 Total 1,412,126 286,995 112,541 83,283 59,890 75,548 5,586 2,035,969 57,583 122,127 97,874 1,865 28,913 2,344,331 SOURCES OF FUNDS Phoenix Tempe Mesa Glendale All Others Subtotal 754,048 201,902 41,483 1,286 998,718 (16,522) (34,026) (8,688) (59,235) 7,705 (17,076) (4,415) (13,786) 39,366 (3,932) (1,131) 34,304 (1,490) 5,400 3,910 (22,667) 9,100 (13,567) 760,441 146,868 27,250 14,500 1,286 950,344 PROJECTED PROPOSITION 400 201,521 70,864 74,913 37,604 59,797 142,469 587,167 399,068 54,132 453,200 1,653,440 127,800 5,618 133,418 145,047 54,000 7,600 61,600 122,727 11,331 20,301 31,632 103,540 31,000 17,159 48,159 111,866 61,500 17,310 78,810 207,712 684,700 122,120 806,820 2,344,331 PROJECTED REVENUES FTA CMAQ Subtotal Total Revenues Note: Negative sources of funds reflect reimbursements to Member Cities for the CPEV 20 Mile Initial Segment Capital Project. Sources of funding include federal grant proceeds and Prop 400 revenues forecasted to fund Regional Assets. Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 17 June 2009 CP/EV LRT Project: The Central Phoenix/East Valley Light Rail Transit (CP/EV LRT) project, as defined in the Full Funding Grant Agreement (FFGA), is a 20 mile LRT project that will connect north central Phoenix, Tempe, and Mesa. The project was identified as the Minimum Operable Segment of the Locally Preferred Alternative selected in the Central Phoenix/East Valley Major Investment Study completed in 1998. As the initial starter segment, the CP/EV LRT project extends from 19th Avenue and Bethany Home Road in Phoenix to Main and Sycamore Road in Mesa. Phoenix, Tempe, and Mesa will share responsibility for funding the non-federal share of the capital costs and the ongoing operations and maintenance (O&M) costs of the project. Construction of the CP/EV LRT began in FY 2005, with revenue operation commencing in December 2008. The total capital costs of the CP/EV LRT project over the period in which funds would be received through the FFGA (FY 1999 to FY 2012) is $1.412 billion in year of expenditure dollars. Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 18 June 2009 CP/EV LRT Project - Uses of Funds: The total capital cost of the CP/EV LRT project over the FY 1999 to FY 2014 period is $1.412 billion in year of expenditure dollars. Capital costs planned for this project are summarized as follows: - - - - - - ($,000) - - - - - - - Transit Enhancements 0.4% Project Management 15.6% Project Finance Cost 8.0% Project Contingency 0.1% Rolling Stock 8.4% Construct Transitway/Lines 29.9% Engineering 9.5% Stops & Terminals 6.6% Right of Way 9.3% Signal & Communication Equipment 3.1% Electrification & Power Distribution 4.4% Support Equipment & Facilities 4.8% Chart 5 -- CP/EV LRT Project Uses of Funds – Inception through FY 2014 Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 19 June 2009 CP/EV LRT Project - Sources of Funds: In addition to Full Funding Grant Agreement federal funds and regional Public Transportation Funds, member cities provide funding for the light rail project through their annual or biennial budgets. Phoenix, Tempe, and Mesa will share the bulk of the responsibility for funding the non-federal share of capital costs. Capital revenues planned for this project are summarized as follows (see also Table 3 – Five-Year Capital Budget / CP/EV LRT Project): - - - - - - ($,000) - - - - - - - CMAQ 4.2% FTA 41.6% Phoenix 29.3% Mesa 1.5% Proposition 400 Revenues 14.1% Tempe 9.3% Chart 6 -- CP/EV LRT Project Sources of Funds – Inception through FY 2014 Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 20 June 2009 Table 3 - Five-Year Capital Program / CP/EV LRT Project ($,000) FY 2010 through FY 2014 CP/EV LRT Project Pre-2010 2010 2011 2012 2013 2014 TOTAL PROJECTED COSTS Capital Costs CP/EV Financing Costs $1,283,950 66,586 $1,350,536 $ Phoenix Tempe Mesa Glendale Subtotal $ 558,724 186,562 35,138 780,424 $ (97,904) (34,026) (8,688) (140,618) PROPOSITION 400 FTA CMAQ 116,913 399,068 54,132 570,113 $1,350,536 47,086 127,800 5,618 180,504 $ 39,886 Total Capital Costs $ 15,148 24,738 39,886 $ $ 709 20,994 21,703 $ $ - $ (1,269) (3,932) (1,131) (6,331) $ $ - $ - $ $ - $1,299,807 112,318 $1,412,126 - $ 413,992 131,528 20,905 566,425 - 198,751 587,200 59,750 845,701 $1,412,126 PROJECTED PAYMENTS Subtotal Total Revenues $ (45,558) (17,076) (4,415) (67,049) $ 34,752 54,000 88,752 21,703 $ $ 6,331 6,331 - $ - $ Note: Negative payments reflect reimbursements to Member Cities for the CPEV 20 Mile Initial Segment Capital Project. Sources of funding include federal grant proceeds and Prop 400 revenues forecasted to fund Regional Assets. Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 21 June 2009 Northwest Extension Project - The Northwest area is a major employment and activity center located in northwest Phoenix. The corridor continues to experience significant growth in population with an expected growth of 24 percent by 2025. Along with this growth, Vehicle Miles of Travel (VMT) is expected to increase by 21 percent. Traffic congestion and capacity deficiencies are expected to increase despite planned transportation improvements. Inadequate transit service has hampered access to this area and to other Valley destinations. A Locally Preferred Alternative (LPA) was adopted by the Phoenix City Council and Valley Metro Rail Board of Directors in 2005. On March 6, 2007, the Council approved the Northwest Corridor Light Rail Transit (LRT) Extension as a phased project; the first 3.2-mile phase, along 19th Avenue from Montebello Avenue to Dunlap Avenue, will be funded entirely from locally funds. Phase I is scheduled to open in 2012, with the remainder of the 4.6 mile project to be completed when engineering is fully coordinated with ADOT’s Interstate 17 widening project. Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 22 June 2009 Northwest Extension Project - Uses of Funds: The total capital cost of the Northwest Extension project over the FY 2005 to FY 2014 period is budgeted to be approximately $307 million, excluding financing costs. - - - - - - - ($,000) - - - - - - - Non Prior Rights Utilites Relocation 6.4% Project Mgmt 10.9% Preliminary Engineering /FEIS 0.5% Final Design 6.3% Contingency 3.3% ROW Acquisition 17.5% Systems 10.6% Guideway 11.3% Stations 9.2% Sitework 24.0% Chart 7 -- Northwest Extension Project Uses of Funds – Inception through FY 2014 Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 23 June 2009 Northwest Extension Project - Sources of Funds: The Northwest Corridor Study Project was included in the City of Phoenix’s Transit Plan (Transit 2000) ballot initiative that was passed by voters, providing a 0.4% sales tax to fund the City’s transit program. On March 6, 2007, the City of Phoenix Council approved the Northwest Corridor Light Rail Transit (LRT) Extension as a phased project; with the first 3.2-mile phase, along 19th Avenue from Montebello Avenue to Dunlap Avenue, to be funded entirely from locally funds. City of Phoenix funds and PTF regional tax funds will be required to complete the first 3.2 mile project phase. The sources of capital revenues planned for this project are summarized as follows (see also Table 4 – Five-Year Capital Budget / Northwest Project): - - - - - - - ($,000) - - - - - - - Phoenix Water 11.9% Phoenix HURF 9.8% Phoenix T 2000 Transit Tax 62.8% Proposition 400 15.5% Chart 8 -- Northwest Project Sources of Funds – Inception through FY 2014 Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 24 June 2009 Table 4 - Five-Year Capital Program / Northwest Extension Phase 1 Project ($,000) FY 2010 through FY 2014 Northwest Extension CAPITAL COSTS Project Costs Non Prior Rights Utilites Total Capital Costs CAPITAL REVENUES FTA Section 5309 Other Federal (CMAQ) Total Federal Pre-2010 $ $ $ Phoenix T 2000 Transit Tax PTF Revenue Phoenix Water Phoenix HURF Total Local Total Capital Revenue Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO $ 2010 64,025 3,552 67,577 $ - $ 57,130 10,447 67,577 67,577 $ $ 2011 83,268 6,466 89,734 $ - $ 65,898 10,999 12,837 89,734 89,734 $ $ 2012 72,282 9,545 81,827 $ - $ 48,815 17,534 15,478 81,827 81,827 25 $ $ 2013 61,007 61,007 $ - $ 44,288 8,562 8,157 61,007 61,007 $ 2014 6,413 6,413 $ - $ (23,587) 30,000 6,413 $ 6,413 $ TOTAL - $ - $ $ - $ - $ 286,995 19,563 306,558 192,544 47,542 36,472 30,000 306,558 306,558 June 2009 Future High Capacity Transit Projects: The Regional Transportation Plan (RTP), adopted by the Maricopa Association of Governments (MAG) and financed under the one-half cent sales tax extension, identifies 57 miles of major light rail/high capacity transit corridors to be implemented by 2026. Currently the 3.2 mile Phase I extension to serve the Northwest area is in final design and right of way acquisition. Under the plan additional service areas are identified; 2.7-miles east into downtown Mesa, 2-miles into south Tempe, 5-miles west into Glendale, 11-miles into west Phoenix and 12-miles into northeast Phoenix. Valley Metro Rail, Inc. (METRO) is the agency charged with planning, designing, building and operating the light rail transit (LRT) system in the area. The timing of the projects in the program is depicted on the following schedule shown below Planning will be completed on the South Tempe and Central Mesa corridors in FY 2009. The I-10 West corridor will complete the planning phase in FY 2010. The Glendale corridor will get underway with Alternatives Analysis beginning in FY 2009 and continue in FY 2010. Funding for future projects has two phases: 1.) Operating Budget Phase: Alternative Analysis and DEIS are funded from Federal Sec 5339 funds, Member City contributions, and PTF (See Project Development planning Support on page 32). 2.) Capital Budget Phase: After entry into Preliminary Engineering, costs are included in the capital budget and funded by Federal, regional, and local sources (See page 27). Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 26 June 2009 Future High Capacity Transit Projects - Uses of Funds: The following Future Project expenditures are currently scheduled to use capital funds during the planning horizon covered by this five-year capital budget (see also Table 5 – Five-Year Capital Budget / Future LRT Extensions): - - - - - - - ($,000) - - - - - - - I-10 West 19.1% Northwest Phase 2 1.4% Fourteen LRV's 14.5% Systemwide Improvements 0.5% Central Mesa 28.4% Glendale 15.1% Tempe South 21.0% Chart 9 – Future Projects Uses of Funds FY 2010 – FY 2014 Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 27 June 2009 Future High Capacity Transit Projects - Sources of Funds: The sources of capital costs budgeted for these projects are summarized as follows (see also Table 5 – FiveYear Capital Budget / Future Projects): - - - - - - - ($,000) - - - - - - - Glendale 3.7% FTA 5309 24.6 % Phoenix -3.0% CMAQ 15.7% Proposition 400 59.0% Chart 10 -- Future Projects Sources of Funds FY 2010 – FY 2014 Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 28 June 2009 Table 5 - Five-Year Capital Program / Future Projects ($,000) FY 2010 through FY 2014 USES OF FUNDS By Project Life Cycle Vehicle Acquisition Preliminary Engineering Final Design ROW Acquisition Utility Relocation NPR Utility Relocations Construction Testing & Startup By Project Fourteen LRV's Systemwide Improvements Central Mesa Tempe South Glendale I-10 West Northwest Phase 2 SOURCES OF FUNDS Local Glendale Sales Tax Phoenix T-2000 PTF PTF Utilities Federal CMAQ FTA 5309 FTA 5307 Subtotal Total Sources PRE-2010 $ 2010 $ $ 40,050 40,050 $ 40,050 $ $ 40,050 $ $ PRE-2009 $ 40,050 - 40,050 1,636 2,836 593 5,065 $ 1,636 593 927 939 971 5,065 $ $ $ 2010 $ - $ 2011 1,636 3,429 - 14,767 359 15,126 $ 359 7,695 5,468 1,604 15,126 $ 5,065 $ $ 2011 $ (11,030) 18,556 - - $ 2012 $ 7,600 15,126 $ 2014 TOTAL 20,134 4,263 11,201 840 1,341 386 38,166 $ 54,636 14,797 15,382 6,027 9,618 $ 100,460 $ 46,917 18,065 16,857 5,316 8,484 101,789 $ 197,429 $ 386 20,641 12,269 4,869 38,166 $ $ $ 27,052 18,773 21,821 30,989 1,825 $ 100,460 2012 7,600 - $ 2013 (11,810) 23,334 1,341 15,897 527 56,226 45,835 38,070 37,114 3,760 $ 197,429 2013 $ 5,400 (7,903) 45,186 9,618 $ $ 2014 $ 9,100 (22,667) 123,702 8,484 20,301 5,000 17,159 31,000 17,310 61,500 25,301 38,166 48,159 $ 100,460 78,810 $ 197,429 41,686 139,290 37,126 43,440 12,184 19,443 103,127 396,296 57,583 1,865 112,541 83,283 59,890 75,548 5,586 396,296 TOTAL $ 14,500 (11,723) 214,207 19,443 62,370 97,500 $ 159,870 396,296 Note: Negative sources of funds reflect reimbursements to the City of Phoenix made in connection with the Fourteen LRVs. The source of funding is PTF revenues. Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 29 June 2009 FIVE-YEAR OPERATING FORECAST The Operations & Maintenance (O&M) costs for the CP/EV LRT Project were projected by METRO to reflect current costs and with an escalation factor of 3.5% and anticipated staffing and administrative overhead requirements. A cost “build-up” approach was used to develop the O&M costs based on assumptions as to headways, running times, vehicle miles, staff requirements, power and utilities, materials and supplies, casualty and loss, police, and other contract services. System-wide and specific corridor LRT Project Development Planning activities are included in the operating budget. Once a project has been approved for preliminary engineering, the costs are thereafter capital in nature. Agency Operating costs include those costs not directly allocable to capital projects or to passenger operations. Included are costs of annual audit, federal and state legislative representation, memberships to transportation related organizations. Five-Year Operating - Uses of Funds: Operating costs planned for the FY 2010 through FY 2014 planning horizon may be summarized as follows (See Table 5, FiveYear Operating Budget): Project Development Planning Support 10.1% Agency Operating Budget 2.3% Operations & Maintenance 87.6% Chart 11 – Uses of Funds -- Five-Year Operating Budget Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 30 June 2009 Five-Year Operating - Sources of Funds: Operating revenues planned for the FY 2010 through FY 2014 planning horizon may be summarized as follows (see also Table 5, Five-Year Operating Budget): Glendale 1.7% Planning Funds - PTF Peoria 4.9% Chandler 0.1% Scottsdale FTA 5339 0.1% 0.1% 0.4% RPTA/MAG/ CMAQ / STP 2.3% Mesa 3.6% Fare Revenues 23.7% Tempe 18.8% Phoenix 44.0% Chart 12 – Sources of Operating Funds – FY 2010 thru FY 2014 Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 31 June 2009 Table 6 - Five-Year Operating Forecast ($,000) FY 2010 through FY 2014 2010 USES OF FUNDS Operations and Maintenance Project Development Planning Support Agency Operating Budget Total Uses 2011 2012 2013 2014 TOTAL 33,733 12,799 982 47,514 34,914 3,542 957 39,413 36,136 2,702 984 39,822 40,001 1,535 1,015 42,551 43,410 1,106 1,049 45,565 188,193 21,684 4,987 214,864 SOURCES OF FUNDS LRT Fares: Phoenix Tempe Mesa Subtotal Fares Other Revenues Phoenix Tempe Mesa Glendale Chandler Peoria Scottsdale Subtotal Local Revenues 6,027 2,519 439 8,985 6,238 2,607 455 9,300 6,457 2,698 471 9,625 7,557 2,787 484 10,828 8,780 2,898 504 12,182 35,059 13,508 2,353 50,920 17,184 7,567 1,457 1,420 50 84 50 27,811 18,155 7,813 1,504 1,461 50 50 50 29,083 16,917 8,084 1,556 767 50 50 50 27,475 20,507 8,372 1,613 30 50 50 50 30,672 21,833 8,651 1,667 31 50 50 50 32,333 94,597 40,487 7,797 3,710 250 284 250 147,374 Capital Planning Funds - PTF 8,768 30 1,722 50 50 10,620 500 500 950 47,514 500 500 39,413 500 500 39,822 500 500 42,551 500 500 45,565 2,500 2,500 950 214,864 MAG RPTA FTA 5339 CMAQ Total Sources Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 32 June 2009 CP/EV Operations & Maintenance Cost Assumptions: Service Frequency FY 2010 Plan: Weekday trains will run with two cars at 10 minute intervals during peak hours and 15 to 30 minute intervals off peak. Weekends do not require peak service trains and will operate with one or two cars at 15 to 30 minute headways. Service headways and train lengths will be adjusted over time to accommodate growth and service patterns. Time of Day Weekday 4:40 am* to 6:00 am Weekday 6:00 am to 7:00 pm Sunday - Thursday 7:00 pm to 11:00 pm* Friday and Saturday 7:00 pm to 2:00 am* Saturday 5:00* am to 6:00 am Saturday 6:00 am to 7:00 pm Saturday 7:00 pm to 11:00 pm* Sunday 5:00 am* to 11:00 pm* *Indicates time that trains depart end of line stations for either first trip of the day or last trip of the day. Service Frequency 20 minutes 10 minutes 20 minutes 20 minutes 20 minutes 15 minutes 20 minutes 20 minutes Passenger Boardings: Over the course of the fiscal year 2010, average daily boardings are forecasted at 30,103 or 11.0 million rides for the year. Conservative growth ridership estimates predict fiscal year 2011 average boardings at 31,150 passengers per day; and fiscal year 2012 boardings at 32,250 passengers per day. In December 2012, with the opening of the Phase I Northwest Extension, average rides are anticipated to reach 38,300 per day. Rail Transportation Service Delivery: Rail Transportation is responsible for ensuring the overall safety and reliability of the METRO system. This includes the Rail Control Center, Field Supervision and Train Operators. Rail Transportation will be responsible for monitoring the METRO system on a 24/7 basis. LRV Maintenance: LRV Maintenance will be responsible for the preventive and corrective maintenance required to ensure a high level of LRV availability and reliability. In addition, each LRV will be cleaned on a daily basis. System Maintenance: Systems Maintenance is responsible for maintaining all METRO systems and facilities, including: track, communications, signals, stations, traction power distribution and overhead centenary systems. Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 33 June 2009 Administration: Rail transportation and maintenance operations will be supported by administrative activities including public safety and security, marketing and customer service, legal and procurement, finance and accounting, risk management, and information systems. Fares: Effective in July 2009 the current Regional Fare Policy is changing as follows: Reduced - ADA Certified, Youth (6-18) and Seniors (age 65 and over) Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 34 June 2009 Table 7 - METRO LRT with NW Extension Starting In December 2012 Operation and Maintenance Cost Estimate FY 2010 through FY 2014 First Full Year Costs Transportation Labor and Materials Labor - Fare Inspection & Security Transportation Consultant Propulsion Power Emergency Contingency (Bus Bridges, etc.) Special Events Contingency Transportation Total Vehicle Maintenance Labor and Materials Maintenance Other Vehicle Maintenance Total Systems and Facilities Maintenance Track/Station/Facility Maintenance Traction Power System Maintenance Signals/Communications/TVMs Material/Supplies/Other Direct Costs Utilities Fare Collection Material & Security Park & Ride Lots Systems and Facilities Maintenance Total Administration Property and General Liability Insurance VMR Management General & Administrative Costs Contingency Reserve Administration Total Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO Extended Cost $ $ $ $ FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 $ 15,034,953 $ 15,561,177 $ 16,105,818 $ 17,828,348 $ 19,347,756 $ 5,497,132 $ 5,689,532 $ 5,888,665 $ 6,518,463 $ 7,073,994 $ 7,165,913 $ 7,416,720 $ 7,676,305 $ 8,497,292 $ 9,221,467 $ 6,035,170 $ 6,246,401 $ 6,465,025 $ 7,156,464 $ 7,766,369 $ 33,733,168 $ 34,913,829 $ 36,135,813 $ 40,000,566 8,411,598 3,492,809 75,000 2,294,520 196,000 565,026 5,697,132 (200,000) 2,213,082 1,306,840 1,160,655 987,050 1,052,700 445,586 - 1,800,000 1,882,952 1,452,218 900,000 35 $ 43,409,586 June 2009 Table 8 - METRO LRT with NW Extension Starting In December 2012 Projected Ridership and Revenues FY 2010 through FY 2014 Fiscal Year FY 2010 Annual Ridership / Fares Baseline Rides Fare Assumption Weekday * 6,552,000 $ 0.82 $ Saturday 1,081,600 $ 0.82 $ Sunday 676,000 $ 0.82 $ 8,309,600 Total Baseline Rides No change to rides, Average Fare based on new fare policy Additional weekday Rides - Exceeding FFGA Target Weekday 1,512,000 Saturday Sunday Total Weekday Additional Rides 1,512,000 Rides down 14%, Average Fare based on new fare policy Additional Rides - Special Events Estimated Per Events Detail 1,135,911 (Rides down 5% , Average Fare based on new fare policy) Total Additional Rides for special events 1,135,911 TOTALS OPERATING REVENUES Fare Revenues Phoenix Tempe Mesa Total Fare Revenues Fare Recovery Ratio 10,957,511 $ 0.82 $ FY 2010 $ 0.82 0.82 FY 2012 FY 2013 FY 2014 5,372,640 886,912 554,320 6,813,872 $ $ $ 5,372,640 886,912 554,320 6,813,872 $ $ $ 5,560,682 917,954 573,721 7,052,358 $ $ $ 5,755,306 950,082 593,801 7,299,190 $ $ $ 6,474,720 1,068,843 668,027 8,211,589 $ $ $ 7,284,060 1,202,448 751,530 9,238,037 1,239,840 $ 1,239,840 $ 1,283,234 $ 1,328,148 $ 1,494,166 $ 1,680,937 1,239,840 $ FY 2011 1,239,840 1,283,234 1,328,148 1,494,166 1,680,937 $ 931,447 $ 931,447 $ 964,048 $ 997,790 $ 1,122,513 $ 1,262,827 $ 886,011 $ 931,447 $ 964,048 $ 997,790 $ 1,122,513 $ 1,262,827 $ 8,939,723 $ 8,985,159 $ 10,828,268 $ 112.5% 12,181,802 112.5% FY 2013 FY 2014 FY 2010 $6,027,245 $ $2,518,540 $ $439,374 $ $8,985,159 67.0800% 28.0300% 4.8900% 27% Gross Operating Costs Phoenix Tempe Mesa Total Operating Costs Member City Funding Phoenix Tempe Mesa Total Member City Funding TOTAL OPERATING REVENUE 27% 9,299,640 $ 103.5% FY 2011 6,238,198 $ 2,606,689 $ 454,752 $ $9,299,640 27% 9,625,127 $ 103.5% FY 2012 6,456,535 $ 7,556,788 $ 8,780,199 2,697,923 $ 2,787,136 $ 2,897,993 470,669 $ 484,344 $ 503,609 $9,625,127 $10,828,268 $12,181,802 27% 27% 28% $ $ $ 22,124,784 $ 22,899,151 $ 23,700,621 $ 27,130,143 $ 30,088,698 9,780,669 $ 10,122,992 $ 10,477,297 $ 10,844,002 $ 11,223,542 1,827,715 $ 1,891,685 $ 1,957,894 $ 2,026,420 $ 2,097,345 $33,733,168 $34,913,828 $36,135,812 $40,000,566 $43,409,586 $ $ $ 16,097,539 $ 16,660,953 $ 17,244,086 $ 19,573,356 $ 21,308,499 7,262,129 $ 7,516,303 $ 7,779,374 $ 8,056,866 $ 8,325,549 1,388,341 $ 1,436,933 $ 1,487,225 $ 1,542,076 $ 1,593,736 $24,748,008 $25,614,189 $26,510,685 $29,172,298 $31,227,784 $33,733,168 $34,913,828 $36,135,812 $40,000,566 $43,409,586 * Note - 6,552,000 annual weekday rides divided by 252 days per year equals 26,000 base riders each weekday Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 36 June 2009 Project Development Planning Support: Project development planning consists of the following subcategories of System Planning and Corridor Planning activities: • Light rail/high capacity transit system planning. • Alternatives analysis, environmental analysis, and conceptual engineering for future light rail/high capacity transit corridors. • Developing and updating LRT design criteria, standards and specifications. • Working with the Maricopa Association of Governments and the Regional Public Transportation Authority to participate in their regional transit planning studies and to update regional project programming documents. • Support of Transit Oriented Development initiatives by Member Cities. • Development of a comprehensive Geographic Information System (GIS) for the agency. Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 37 June 2009 The projected uses and sources of funds in connection with these activities are summarized as follows (note that any negative funding sources that may appear in the table below reflect reimbursement to Member Cities from other funding sources): - - - - - - - - - - - - - - - - - - - - - ($,000) - - - - - - - - - - - - - - - - - - - - - - - - - Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 38 June 2009 METRO Five-Year Staffing Plan: Staffing levels are planned to optimize the appropriate relationship of internal staff versus contractor labor. Internal staffing provides a lower cost solution so long as project activities require full-time effort throughout the lowest period of design and construction project cycles Pictured below are the project schedules and the level of effort stated in Full-Time Equivalent employees (FTE). Authorization of positions by the METRO Board is executed by adoption of the Annual Budget. LRT / HIGH CAPACITY TRANSIT PROJECT SCHEDULE * * * Projected Full-Time Equivalents – FY 2010 through FY 2014 * * * Note: Staffing estimates are preliminary. Authorization of positions by the METRO Board is executed by adoption of the Annual Budget. Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 39 June 2009 APPENDIX A – BUDGET PROCESS METRO’s continuing goal is to provide the highest quality services to our member communities in the most cost effective manner. The METRO budget process is a key piece of the strategy to achieve these results in a coordinated manner and to make fiscally responsible decisions that will ultimately produce a premier transit system in Maricopa County. METRO’s budget process serves two principal purposes. Within the Corporation, development of the budget provides a forum for joint planning of objectives and tasks, with managerial and board review of programs. It sets the expectations for performance in the coming year(s). For the Corporation’s Members and partner agencies, the budget reports on the status of projects and services, detailing the agency’s operational objectives, capital improvements, and funding plans. The annual budget is prepared on an accrual basis and adopted by the Board of Directors each fiscal year. With respect to Capital Budgets, project contingency accounting is used to control expenditures within available project funding limits. With respect to Operating Budgets, encumbrance accounting is not used and all appropriations lapse at the end of the year. METRO staff positions are listed and approved as part of the annual budget process. Prior to final adoption, a proposed 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. METRO also develops a Five-Year Capital Program and Operating Forecast as part of the annual budget process. The five-year budget focuses on the capital improvements that are planned to occur within the planning horizon, and includes: • • • • projected costs of LRT capital expenses, projected amounts to be paid by each Member to METRO, projected amounts to be paid directly for LRT expenses by each Member (for example, for acquiring rights-of-way), and projected revenues to be received from Federal funds or other funding sources. METRO future staffing estimates are also provided. However, only adoption by the Board of the annual budget authorizes new METRO staffing positions. The internal process is a collaborative and iterative one, with the agency’s senior management providing strategic direction and critical review, managers and project managers preparing resource proposals, and financial staff (Including the Financial Working Group) providing feedback and technical support for the process. A review by the Rail Staff Working Group and Rail Management Committee will precede drafting of the proposed budget. Once the proposed annual budget and five-year capital plan have been published, the METRO Board provides final review and adoption. Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 40 June 2009 Budget Timelines: The 2009/2010 process is outlined below, with preliminary planning beginning in February 2009 and with budget adoption scheduled for May 2009. Major phases of this process are outlined below: • • • • • Feb 15th -- Budget Templates to City Staff for Revenue Forecast April 1st -- Draft Budget to Rail Management Committee, Rail Staff Working Group, and Financial Advisory Group for Review. April 30th – Comments due to METRO Budget Group May 7th – Budget Finalized May Board Meeting – Budget Adopted by Board Members' Staff Feb 1st thru Feb 15th Feb 15 thru Mar 15 METRO Budget Group METRO Directors / Advisory Groups Prepare Templates Respond to Questions and Issues Raised Provide Input and Direction Compile Budget Information and Prepare Draft Budget Respond to Questions and Issues Raised and Provide Direction Respond to Questions and Issues Raised Review Draft Budget Package and Provide Feedback to METRO Budget Group May 1st thru May 7th Compile Revisions and Prepare Final Budget Review and Approve Budget for Submission to the Board May 7 to May 15th Respond to Questions and Issues Raised Revenue Forecast Mar 15 thru Mar 31 Apr 1st thru April 30th METRO Board Review and Comment May Board Meeting Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO Review Budget Formally Adopted 41 June 2009 Appendix B - Listing of CNPA by City March 2009 Phoenix Public Transit Bus Pullouts on Central Avenue Phoenix Art Museum Left Turn Lane 19th / Montebello Transit Center Central / Camelback Transit Center Washington / 44th Street Transit Center Washington / 44th-56th Street Bike Lanes Civic Plaza Expansion COP Add'l Water Svcs to Pueblo Grande Museum CNPA COP Central/Camelback Bus Bays Relocation COP CNPA LScape Irrigation Resto Central Ave PPT CNPA Additional Point of Interest Signs Fiber Optic COP Washington/Jefferson 16 to 26 St Property Access 11th Street Loop Track PPT CNPA-3rd St/ Wash Station APS Medallions M4-PPT Taylor Street Ped Crossing Sub Total Phoenix Streets 6th Lane on Camelback Additional Street & Pedestrian Lighting Rubber Overlay LS 1 Rubber Asphalt LS 3 Rubber Asphalt LS 4 PST CNPA-Additional 3/8" AC Leveling Course CNPA COP Red Light Cameras PST CNPA Removable Steel Curb at 7th/Jeff 5F - LRT Signals/Communications Sub Total Phoenix Aviation Washington / 44th Street Transit Center APM Utility Connections People Mover Foundation - 44th Street People Mover APS Ductbank @ 40th Place 10" Water Line 42nd/Washington Archaelogical/Hazardous Material testing Sub Total ($,000) 726 92 6,276 9,831 4,467 843 340 82 140 92 67 423 2,438 5,118 7 11 30,954 8,643 538 219 1,557 380 166 50 6 80 11,639 2,981 23 756 357 57 59 4,233 Phoenix Water COP Water/Sewer LS 1 COP Water/Sewer LS 2 COP Water/Sewer LS 3 COP Water/Sewer LS 4 COP Water/Sewer 48th Street Bridge LS1 Cathodic Protection LS2 Cathodic Protection LS3 Cathodic Protection LS4-COP, Cathodic Protection Sub Total 13,851 8,054 20,974 6,962 143 744 505 86 51,319 Total - City of Phoenix 98,144 Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO June 2009 42 Appendix B - Listing of CNPA by City March 2009 City of Tempe 5th / College Transit Center COT SRP Prior Rights TC Relo COT Waterline COT Add'l Comm Conduits: Dorsey Lane LS5 CO13 COT ASU Pedestrian Signal Parking Facility at 5th/Farmer COT Wtrline @ Cremery Rt,Stadium Dr, Apache Blvd COT Additional Street Lighting COT Add'l Conduit @ McClintock/Apache Rubber Asphalt LS 5 Storm Drain Extension Rubber Asphalt - Tempe McClintock Park and Ride - COT Tempe Other Admin Costs COT CNPA-Misc Changes Directed by City of Tempe COT CNPA-Apache/McClintock Park & Ride Garage Fiber Optic COT LS4-COT, Cathodic Protection University Drive Station Bus Interface Veteran's Way (5th) / College TC Misc Revisions CNPA COT Bus Shelter Electrification (LS4 CO#89) CNPA COT Wash/Ctr Pkwy Station TLB Lighting Change Orders COT CNPA-Add'l Mill/Overlay: Apache, Rural-Price COT CNPA-Price/Apache PnR Modifications (PNR-RB) COT CNPA - Price/Apache PnR Waterline COT CNPA-Landscape Island at Terrace /Apache COT CNPA-Replace Bougainvilleas on Stadium Drive Tempe Market Analysis Relocation of LS5 Field Offices Total City of Tempe City of Mesa Main / Sycamore Transit Center Fiber Optic COM M2 - Mesa Add'l Grind & Overlay M3 - Mesa Add'l Grind & Overlay on Dobson Mesa Market Analysis CNPA - Local Work Jurisdiction Total City of Mesa Various ASU Logo Additions - Station Finshes ASU Steam Line Fiber Optic ASU CNPA-Rojo Lofts Property CityScape CNPA in LS3 APS Archaeological Support at 48th Bridge Total ASU 628 220 48 28 109 112 82 280 8 595 115 464 5,581 723 16 457 384 140 7 10 4,428 19 569 58 102 8 22 44 86 15,340 5,098 778 247 204 19 6,345 72 8 1,042 82 24 58 1,286 121,115 Grand Total All CNPAs Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO ($,000) 43 June 2009 APPENDIX C – GLOSSARY OF TERMS AND ACRONYMS TERM / ACRONYM DEFINITION 5309 A reference to FTA New Starts Program, Title 49 U.S.C., Section 5309, providing funding for the design and construction of transit systems including the CP/EV LRT METRO system. 5339 Section 5339 allows FTA to make grants and agreements, under criteria established by the Secretary, to States, authorities of the States, metropolitan planning organizations, and local governmental authorities to develop alternatives analyses as defined by section 5309(a)(1). Eligible study sponsors must be able to incorporate the results of this work into an ongoing alternatives analysis study or must commit to initiate an alternatives analysis study within 12 months of the grant approval. ADOT CADD CMAQ Arizona Department of Transportation Computer aided design and drafting Federal funding program intended for Congestion Mitigation and Air Quality improvement. CNPA CP/EV LRT Concurrent Non-Project Activities Central Phoenix/East Valley Light Rail Transit - the initial 20 mile project segment of light rail in Maricopa County - with scope definition provided as part of the Full Funding Grant Agreement dated January 24, 2005. DEIS Draft Environmental Impact Statement - Submitted in advance of application for the FFGA, the DEIS identifies impacts anticipated by the prospective construction and operation of an LRT system including impacts on traffic, noise, air quality, historic and archeological sites, as well as impacts to properties along the alignment. FEIS Final Environmental Impact Statement- Submitted in advance of application for the FFGA, the DEIS identifies impacts anticipated by the prospective construction and operation of an LRT system including impacts on traffic, noise, air quality, historic and archeological sites, as well as impacts to properties along the alignment. FFGA Full Funding Grant Agreement - Inter-Governmental Agreement between the F T A and the Grantee responsible for the design and construction of a transit project. In the case of the CP/EV project, the City of Phoenix is the Grantee and METRO is acting as a sub-recipient. FTA Headways Federal Transit Administration The time interval between arriving trains or busses along a transit route. (Service Frequency) HCT High Capacity Transit – includes heavy rail, Light Rail Transit, Bus Rapid Transit modes of urban transportation. Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 44 June 2009 APPENDIX C – GLOSSARY OF TERMS AND ACRONYMS (continued) TERM / ACRONYM DEFINITION LPA The Locally Preferred Alternative alignment for a transit route among a set of options which have been analyzed. LRT LRV MAG Member Cities METRO Light Rail Transit Light Rail Vehicle Maricopa Association of Governments METRO equity members, currently Phoenix, Tempe, Mesa and Glendale the light rail system to be designed, constructed and operated by Valley Metro Rail O&M Proposition 400 Operations and Maintenance activities required for rail passenger service. Legislative initiative to create a Public Transportation Fund passed into Arizona law in November 2004 providing roadway and public transit improvements in accordance with the Regional Transportation Plan. PTF ROW RPTA Public Transportation Fund. See Proposition 400. Right-of-Way- real property required for the LRT alignment Regional Public Transportation Authority the designated agency to receive and distribute public transit improvement funding under Proposition 400 RTP Regional Transportation Plan - for Maricopa County, a comprehensive, performance-based, multi-modal and coordinated regional plan providing a blueprint for future regional transportation investments. TIP TOD Transportation Improvement Program Transit Oriented Development - real property development typically incorporating residential and commercial uses into the areas adjacent to a transit route. METRO VMT Valley Metro Rail, Inc. Vehicle Miles of Travel for each LRT vehicle operated Five-Year Capital Program and Operating Forecast FY 2010 through FY 2014 METRO 45 June 2009