FIVE-YEAR OPERATING FORECAST AND CAPITAL PROGRAM FY 2011 - FY 2015 Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO 0 May 2010 Valley Metro Rail, Inc. Phoenix, Arizona Five-Year Operating Forecast and Capital Program FY 2011 through FY 2015 (July 1, 2010 through June 30, 2015) Board of Directors Chairman – Councilman Tom Simplot, Phoenix Mayor Bob Barrett, Peoria Mayor Hugh Hallman, Tempe Councilman Rick Heumann, Chandler Vice Mayor Kyle Jones, Mesa Mayor Elaine Scruggs, Glendale Executive Management Team Stephen R. Banta, Chief Executive Officer Raymond Abraham, Chief Operations Officer Brian Buchanan, Design & Construction Director John Farry, Community & Government Relations Director Wulf Grote, Project Development Director Jay Harper, Chief of Safety and Security Mike Ladino, General Counsel John McCormack, Finance & Administration Director Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO i May 2010 Table of Contents 1. Executive Summary METRO Organization ........................................................................................... 1 METRO Vision ...................................................................................................... 2 METRO Services .................................................................................................. 3 • Operations & Maintenance ........................................................................ 4 • Project Development.................................................................................. 4 • Design & Construction Management ......................................................... 4 • Five-Year Budget Summary....................................................................... 5 2. Goals and Objectives FY 2010 Accomplishments ................................................................................... 8 Annual Goals and Objectives (FY 2011 thru FY 2015) ......................................... 9 3. Five-Year Operating Forecast Uses & Sources of Funds ................................................................................... 13 Passenger Operations & Maintenance Cost Assumptions ................................. 15 Operations & Maintenance Cost Estimate FY 2011-2015 .................................. 17 Five Year Fares, Costs and Member City Funding ............................................. 18 Project Development Planning ........................................................................... 18 METRO Five-Year Staffing Plan ......................................................................... 20 4. Five-Year Capital Program All Projects.......................................................................................................... 21 CP/EV LRT Project ............................................................................................. 25 High Capacity Transit Projects ........................................................................... 27 Northwest Extension........................................................................................... 28 Central Mesa Extension ..................................................................................... 29 Tempe South Corridor ........................................................................................ 31 Phoenix West Extension ..................................................................................... 32 5. Appendix A-Budget Process............................................................................................... 33 B-Listing of CNPAs ............................................................................................. 35 C-Glossary of Terms and Acronyms................................................................... 37 Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO ii May 2010 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 was created 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 and provides general oversight of the METRO agency and its responsibilities. The Chief Executive Officer (CEO) is responsible for implementing the agency vision and 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-byproject basis. The following chart depicts the policy organization for METRO and the relationships to key stakeholders. METRO Policy Organization Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO 1 May 2010 METRO VISION In June of 2004, the METRO Board of Directors adopted a Vision Statement to describe what METRO will be when it has achieved a high level of success. The Vision was developed by volunteers of the METRO staff as part of the strategic planning effort that began with the development of the Vision statement and continued throughout this fiscal year. The Vision Statement of METRO is: “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 customer service, quality and safety, which enhances quality of life and is a point of pride for our community.” METRO Five-Year Organizational Goals • Operate a safe, efficient, customer-oriented, reliable METRO system. • Maintain sound and trusted relationships with public and private stakeholders including improved coordination with all public transportation operators. • Expansion of the METRO system through effective planning, design, and construction of the high capacity/light rail transit element of the Regional Transportation Plan. • Maintain organizational stability and a sound human resource. Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO 2 May 2010 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 Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO 3 May 2010 METRO SERVICES (continued) 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. 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 HCT element of the Transit 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. Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO 4 May 2010 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. Five-Year Budget Summary Uses of Funds: The high-level details of the overall operating and capital budget for METRO is attached as Table 1, Budget Summary. The cumulative uses of funds, FY 2011 through FY 2015, may be summarized as follows: Uses of Funds Five Year Total LRT Operations & Maintenance Project Development Planning Agency Operating Budget Subtotal - Operations and Proj Dev CP/EV LRT Project Northwest Extension Phase 1 Central Mesa Tempe South Phx West 14 LRV's CNPA and ARRA Projects Non-Prior Rights Utilities Systemwide Improvements PTF Debt Service Subtotal - Capital Total Uses Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO 21.5% 3.6% 0.6% YOE ($,000) $ 180,145 30,130 5,395 25.7% 2.8% 13.5% 21.6% 8.8% 14.7% 1.9% 0.5% 3.8% 0.3% 6.4% 215,670 23,632 113,039 180,954 73,945 122,998 15,897 4,428 31,679 2,190 53,827 74.3% 622,589 100.0% 5 $ 838,259 May 2010 Sources of Funds: The cumulative sources of funds, FY 2011 through FY 2015, may be summarized as follows (see Table 1, Five-Year Capital Program and Operating Forecast Summary): Sources of Funds Five Year Total LRT Fares Phoenix Tempe Mesa Glendale Chandler Peoria All Others PTF Sales Tax Revenue PTF (Reserve) / Borrowing FTA Section 5309 FTA Section 5339 CMAQ / STP Other Federal Total Sources Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO 6 5.85% 5.61% 1.07% 0.40% 0.02% 0.03% 0.03% 0.00% 28.08% 13.87% ($,000) $ 49,028 47,034 8,930 3,348 162 252 217 235,378 116,241 23.45% 0.21% 10.61% 10.18% 100.00% 196,583 1,800 88,981 85,306 838,259 $ May 2010 Table 1 – Five-Year Capital and Operating Budget Summary ($000) 2011 2012 2013 2014 2015 Cumulative 2011 - 2015 USES OF FUNDS LRT Operations & Maintenance Project Development Planning Agency Operating Budget Subtotal - Operations and Proj Dev CP/EV LRT Project Northwest Extension Phase 1 Central Mesa Tempe South Phx West 14 LRV's CNPA and ARRA Projects Non-Prior Rights Utilities Systemwide Improvements PTF Debt Service 33,222 9,565 1,016 $ Subtotal - Capital Total Uses 35,119 6,576 1,047 43,803 18,272 5,125 14,001 45 4,428 56 350 5,411 $ 42,742 5,360 51,049 22,531 5,118 34,277 13,671 357 5,495 36,172 5,673 1,078 $ 42,923 56,866 37,069 15,181 19,794 16,743 500 6,310 37,257 5,116 1,110 $ 43,484 51,222 24,874 32,952 15,897 1,209 483 18,424 38,375 3,200 1,144 $ 42,719 56,131 28,772 35,930 500 18,187 180,145 30,130 5,395 $ 215,670 23,632 113,039 180,954 73,945 122,998 15,897 4,428 31,679 2,190 53,827 47,688 137,858 152,462 145,060 139,520 622,589 91,491 180,599 195,386 188,544 182,239 838,259 (33,263) (23,286) (2,404) 30 121 85 1,000 (57,716) 27,151 6,452 959 31 31 31 1,000 35,656 29,456 8,087 1,218 32 32 32 1,000 39,857 5,604 8,608 1,744 33 33 33 1,000 17,056 18,085 9,070 1,832 34 34 34 1,000 30,090 $ 47,034 8,930 3,348 162 252 217 5,000 64,943 41,221 22,227 44,515 11,240 47,096 13,305 49,828 53,423 52,718 16,045 $ 9,098 9,544 9,831 10,126 10,429 61,250 1,400 11,750 2,261 76,661 91,491 17,799 400 13,827 47,618 79,644 $ 180,599 35,000 14,869 35,427 85,296 $ 195,386 35,507 22,605 58,112 $ 188,544 47,027 25,930 72,957 182,239 235,378 116,241 49,028 196,583 1,800 88,981 85,306 372,670 838,259 SOURCES OF FUNDS Phoenix Tempe Mesa Glendale Chandler Peoria MAG / RPTA Subtotal PTF Sales Tax Revenue PTF (Reserve) / Borrowing LRT Fares FTA Section 5309 FTA Section 5339 CMAQ / STP Other Federal Subtotal Total Sources $ $ Note: Cost and revenues reported on accrual basis. Negative sources of funds reflect reimbursements to Member Cities for federal grant funding and PTF revenues funding Regional Assets. PTF Sales Tax Revenues are forecasted at FY 2010 base plus 2% in FY11 and 5.8% annual growth thereafter. The Rail PTF (Reserve) / Borrowing represents forecasted expenditures from bond proceeds. Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO 7 May 2010 FY 2010 ACCOMPLISHMENTS • • • • • • • METRO ridership success o Exceeded projections by 45% in 2009 (projected ridership – 7.8 million/actual ridership – 11.1 million) o Projected weekday rides 26,000/actual rides 40,530 (Jan- Mar 2010) o Single day ridership surpassed 50,000 on nine occasions since the inception of revenue service. o METRO Rail is delivering 19.7% of total bus/rail rides in the region. Continued the safety awareness campaign to ensure the delivery of safety messages to drivers and METRO passengers. Information and system improvements were implemented to better serve METRO passengers. Implementation of the “Rail Ride” program with U.S. Airways Center that provides patrons to use event tickets as fare media. Implementation of the “Adopt-A-Station” program that further integrates METRO into the community. Board adoption of a policy permitting limited advertising on METRO vehicles and stations. Continued progress on Alternatives Analysis for three future high capacity transit corridors including the adoption of a Locally Preferred Alternative on the Central Mesa extension. Awards Received by METRO • • • • • • • ADA Liberty Progress Award to METRO and Valley Metro – Arizona Disability Advocacy Coalition Outstanding Transit Organization Excellence Award – Arizona Transit Association President’s Award, Crescordia Award and two Awards of Merit – Valley Forward’s Environmental Excellence Awards Silver Telly Award for METRO safety video Project of the Year – Associated Minority Contractors of America Public Works Project of the Year – American Public Works Association, Arizona Chapter Certificate of Achievement for Excellence in Financial Reporting for Fiscal Year 2008 CAFR – Government Financial Officers’ Association awards METRO. Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO 8 May 2010 Annual Goals & Objectives (FY 2011 through FY 2015) Project Development Division Goals: • Complete environmental analysis and reporting for the initial 20-mile LRT project and continue to provide environmental support to system operations. • Complete an analysis of LRT rider characteristics to support future planning efforts. • Resolve the proper location for a high capacity transit investment to serve Glendale and west Phoenix and define the next steps for this high capacity transit corridor • Complete the Light Rail/High Capacity Transit system configuration for high capacity transit corridors in the Regional Transportation Plan (RTP) • Determine the Locally Preferred Alternative for Tempe South and Phoenix West Corridors • Complete environmental analysis and preliminary engineering for the Central Mesa, Tempe South Corridors and Phoenix West Corridors • Develop and implement an early action bus program for the Phoenix West Corridor • Define funding and prepare an environmental analysis to complete street improvements for the future Northwest LRT Extension • Annually update the Rail Element of the Transit Life Cycle Program and seek ways to fund and accelerate projects in the RTP • Continue the implementation, administration and utilization of an effective agency-wide Geographic Information System • Actively participate in and provide management assistance for regional transit planning studies conducted by MAG, RPTA and ADOT • 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. Chandler, Peoria) Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO 9 May 2010 Design & Construction Division Goals: • Support the operation of the existing system • Continue to closeout the Central Phoenix/East Valley project • Begin the design of the Mesa Extension • Provide technical support to the Project Development Division on future extension studies • Develop and implement sustainable "green" elements and enhancements to passenger mobility Operations & Maintenance Division Goals: • Deliver rail operational service within budget • Achieve or exceed LRV mean-time-between-failures’ objective • Maintain on time performance at 95% or above • Preventative maintenance inspections and tasks will be performed on time (includes systems and vehicle) • Perform all corrective maintenance tasks necessary to ensure world class service • Continue to search for cost saving measures in operations and maintenance Safety & Security Division Goals: • Provide a framework for the implementation of safety policies and the achievement of the system safety goal and objectives on a system wide basis • Provide a medium through which the METRO system will display its commitment to safety • Adhere to FTA compliant Drug and Alcohol Testing Program for all Operations and Maintenance Employees (O & M) Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO 10 May 2010 • Satisfy federal and state requirements • Meet accepted transit industry standards and audit provisions • Eliminate, minimize, or control identified critical and catastrophic hazards • Perform all necessary safety analyses to identify and assess safety hazards • Evaluations of accident data to improve safe interaction with the driving public • Minimize the threat to and vulnerability of patrons, employees and assets. • Maintain an awareness of the need for security in the METRO organization. Community and Government Relations Division Goals: • Ensure that customer service is paramount in METRO activities. • Implement marketing strategies, safety campaigns, customer education for future light rail projects and revenue operations. • Continue to foster relationships with the business and residential communities related to future projects 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, business and construction needs. • Provide on-going legal advice to senior METRO management in the areas of risk management, litigation avoidance, statutory compliance and corporate governance. Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO 11 May 2010 • Manage and fine-tune the Owner Controlled Insurance Program as METRO’s operational experience develops. • Fully integrate the corporate risk management function into METRO’s core business. • 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 fare revenue and ridership accounting controls o Work with fare enforcement and public information to improve Smart Card revenue o Fully implement ridership reporting system o Hold contractors accountable to improve equipment and services o Maintain PCI compliance for TVM’s • Manage financial aspects of rail operations costs o Maintenance work order cost system  Manage accurate labor and material costs  Maximize Warranty recoveries o Inventory Cost reporting o Contract control management  Identify cost savings and initiate actions to reduce cost o Complete NTD reports accurately and On-time • 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 financial reporting and controls system to deliver projects on-time and within budget. • Manage IT systems to maximize user computer capabilities o Update system servers and desktops o Implement SharePoint network system o Improve help desk services Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO 12 May 2010 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 3.0% and anticipated staffing and administrative overhead requirements. In the five year plan, the deferred maintenance staff positions, maintenance materials and contingency are forecasted to be restored in FY 2012. (Totaling 5.7% increase over FY 2011) 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 and Sources of Funds: Operating costs and funding planned for the FY 2011 through FY 2015 planning horizon may be summarized as follows (See Table 5, Five-Year Operating Budget): Uses of Funds - Operating Budget Operations & Maintenance Project Development Planning Support Agency Operating Budget Total Uses Sources of Funds - Operating Budget Fare Revenues Member Support Phoenix Tempe Mesa Glendale Chandler Peoria Subtotal Capital Planning Funds - PTF FTA 5339 RPTA/MAG/ CMAQ / STP Total Sources Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO 13 83.5% 14.0% 2.5% 100.0% $ $ ($,000) 180,145 30,130 5,395 215,670 22.7% $ ($,000) 49,028 40.9% 19.0% 3.3% 0.1% 0.1% 0.1% 63.5% 88,192 40,957 7,079 162 252 217 136,858 10.3% 0.8% 2.7% 100.0% 22,235 1,800 5,750 215,670 $ May 2010 Table 2 – Five-Year Operations and Maintenance - - - - - - - - - - - - - - - - - - - -Year of Expenditure ($,000) - - - - - - - - - - - 2011 O&M COSTS Phoenix Tempe Mesa Total Operating Costs 2012 2013 2014 2015 TOTAL 21,756 9,598 1,868 33,222 22,906 10,225 1,987 35,119 23,593 10,532 2,047 36,172 24,301 10,848 2,108 37,257 25,030 11,173 2,171 38,375 117,587 52,376 10,182 180,145 O&M REVENUES Fares Phoenix Tempe Mesa Subtotal, Fare Revenue 5,659 2,592 847 9,098 5,936 2,719 889 9,544 6,114 2,801 915 9,831 7,066 2,606 453 10,126 7,517 2,481 431 10,429 32,293 13,200 3,535 49,028 Other Revenue * Phoenix Tempe Mesa Subtotal, Other Revenue Total O& M Revenues 16,097 7,006 1,021 24,124 33,222 16,970 7,506 1,099 25,574 35,119 17,479 7,731 1,132 26,341 36,172 17,235 8,242 1,655 27,132 37,257 17,513 8,692 1,740 27,946 38,375 85,294 39,176 6,647 131,117 180,145 * Includes Advertising Revenue Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO 14 May 2010 Passenger Operations & Maintenance Cost Assumptions Service Frequency FY 2011 Plan: Weekday trains will run with two cars at 12 minute intervals during peak hours and 15 to 20 minute intervals off peak. Weekends do not require peak service trains and will operate with one or two cars at 15 to 20 minute headways. Service headways and train lengths will be adjusted over time to accommodate growth and service patterns. Time of Day Monday - Friday 4:40 am to 7:30 am Monday - Friday 7:30 am to 6:30 pm Monday - Thursday 6:30 pm to 12:00 am Friday 6:30 pm to 2:00 am Saturday 5:00 am to 7:00 pm Saturday 700 pm to 2:00 am Sunday 5:00 am to 11:00 pm Service Frequency 20 minutes 12 minutes 20 minutes 20 minutes 15 minutes 20 minutes 20 minutes In addition, five days currently scheduled for weekday service frequency will be converted to holiday schedule frequency (Sunday schedule). Ridership and Fare Revenue: Total Ridership is forecasted at 11.372 million passengers for the year with fare revenues generating $9.098 million. Over the course of the fiscal year 2011, average weekday boardings are forecasted at 36,317 exceeding the FFGA target ridership by 10.317 per day. Saturday and Sunday average ridership are forecasted at 26,200 and 16,500 per day respectively. Average Annual Ridership / Fares Daily Baseline Rides 26,000 Weekday 20,800 Saturday 13,000 Sunday Fare Assumption 6,552,000 1,081,600 676,000 8,309,600 $ $ $ 0.80 0.80 0.80 $ $ $ $ 5,241,600 865,280 540,800 6,647,680 Additional Rides - Exceeding FFGA Target: 2,599,898 $ Weekday Saturday 280,800 $ Sunday 182,000 $ 0.80 0.80 0.80 $ $ $ $ 2,079,918 224,640 145,600 2,450,158 0.80 $ 9,097,838 Total Baseline Rides 10,317 5,400 3,500 Total Weekday Additional Rides 31,243 3,062,698 Total Ridership and Fare Revenue Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO 11,372,298 15 $ May 2010 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. 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. Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO 16 May 2010 Fares: Effective July 2009, the current Regional Fare Policy is as follows: Reduced - ADA Certified, Youth (6-18) and Seniors (age 65 and over) Table 3 – Rail Operations and Maintenance Cost Forecast FY 2011 through 2015 - - - - - - - - - - - - -Year of Expenditure Dollars - - - - - - - - - Annual Cost Projection Extended Cost Transportation Labor and Materials $ 8,572,923 Labor - Fare Inspection & Security 3,470,006 Propulsion Power 2,623,866 Emergency Contingency (Bus Bridges, etc.) 196,000 Transportation Total Vehicle Maintenance Labor and Materials $ 5,797,467 Maintenance Other (270,749) Vehicle Maintenance Total Systems and Facilities Maintenance Track/Station/Facility Maintenance $ 2,296,600 Traction Power System Maintenance 968,569 Signals/Communications/TVMs 993,419 Material/Supplies/Other Direct Costs 1,759,660 Utilities 1,513,880 Fare Collection Material & Security 343,302 Systems and Facilities Maintenance Total Administration Property and General Liability Insurance $ 1,350,000 VMR Management 1,754,305 General & Administrative Costs 1,485,287 Contingency Reserve 367,413 Administration Total FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 $ 14,862,795 $ 15,308,679 $ 15,767,939 $ 16,240,977 $ 16,728,207 $ 5,526,719 $ 5,692,520 $ 5,863,296 $ 6,039,195 $ 6,220,371 $ 7,875,429 $ 8,861,692 $ 9,127,543 $ 9,401,369 $ 9,683,410 $ 4,957,005 $ 5,255,715 $ 5,413,387 $ 5,575,788 $ 5,743,062 $ 33,221,948 $ 35,118,607 $ 36,172,165 $ 37,257,330 $ 38,375,050 Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO 17 May 2010 Table 4 – Rail Operations Fares and Member City Funding FY 2011 to FY 2015 ($000) 103.0% FY 2011 Annual Ridership / Fares Fiscal Year Baseline Rides Fare Assumption 6,552,000 $ 0.80 $ Weekday * 1,081,600 $ 0.80 $ Saturday 676,000 $ 0.80 $ Sunday 8,309,600 $ Total Baseline Rides No change to rides, Average Fare based on new fare policy FY 2011 103.0% FY 2013 103.0% FY 2014 FY 2015 5,241,600 $ 865,280 $ 540,800 $ 6,647,680 5,398,848 $ 891,238 $ 557,024 $ 6,847,110 5,560,813 $ 917,976 $ 573,735 $ 7,052,524 5,727,638 $ 945,515 $ 590,947 $ 7,264,099 5,899,467 973,880 608,675 7,482,022 Additional weekday Rides - Exceeding FFGA Target Weekday 2,810,556 $ 0.80 $ 2,248,445 $ 2,248,445 $ Saturday 280,800 $ 0.80 224,640 224,640 $ Sunday 182,000 $ 0.80 145,600 145,600 $ Total Weekday Additional Rides 3,273,356 2,618,685 2,618,685 Rides up based on first nine months actual ridership, Average Fare based on FY10 experience adjusted for fare increase 2,315,898 $ 231,379 $ 149,968 $ 2,697,245 2,385,375 $ 238,321 $ 154,467 $ 2,778,163 2,456,936 $ 245,470 $ 159,101 $ 2,861,508 2,530,644 252,834 163,874 2,947,353 - $ - $ - $ $ - $ - $ Lost Rides - Due to Service Cut 3% Estimated Weekday Rides Total for Service Changes TOTALS (210,658) $ (210,658) 11,372,298 $ OPERATING REVENUES Fare Revenues Phoenix Tempe Mesa Total Fare Revenues 0.80 $ 5,241,600 865,280 540,800 6,647,680 (168,526) (168,526) 0.80 $ 9,097,839 $ $ $ 103.0% FY 2012 $ $ (168,526) $ - $ 9,097,839 $ 9,544,356 $ 104.9% FY 2011 $5,658,672 $ $2,592,166 $ $847,000 $ $9,097,839 62.1980% 28.4921% 9.3099% Fare Recovery Ratio Advertising Revenue Phoenix Tempe Mesa Gross Operating Costs Phoenix Tempe Mesa Total Operating Costs Member City Funding Phoenix Tempe Mesa Total Member City Funding (168,526) $ 65.4870% 28.8900% 5.6230% TOTAL OPERATING REVENUE FY 2012 5,936,397 $ 2,719,389 $ 888,570 $ $9,544,356 9,830,686 $ 103.0% FY 2013 10,429,375 103.0% FY 2014 FY 2015 6,114,489 $ 7,066,417 $ 7,517,114 2,800,970 $ 2,606,275 $ 2,481,099 915,227 $ 452,915 $ 431,162 $9,830,686 $10,125,607 $10,429,375 27% 27% 27% 27% 27% $250,000 $167,700 $70,075 $12,225 $257,500 $172,731 $72,177 $12,592 $265,225 $177,913 $74,343 $12,970 $273,182 $183,250 $76,573 $13,359 $281,377 $188,748 $78,870 $13,759 $ $ $ 21,756,051 9,597,830 1,868,068 $33,221,948 $22,906,289 $10,225,096 $1,987,221 $35,118,607 $23,593,478 $10,531,849 $2,046,838 $36,172,165 $24,301,282 $10,847,804 $2,108,243 $37,257,330 $25,030,321 $11,173,238 $2,171,491 $38,375,050 $ $ $ 15,929,678 $ 16,797,161 $ 17,301,076 $ 17,051,614 $ 17,324,459 6,935,588 $ 7,433,530 $ 7,656,536 $ 8,164,957 $ 8,613,269 1,008,843 $ 1,086,060 $ 1,118,641 $ 1,641,970 $ 1,726,569 $23,874,110 $25,316,751 $26,076,253 $26,858,541 $27,664,297 $33,221,948 $35,118,607 $36,172,165 $37,257,330 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. 18 - 10,125,607 $ 103.0% Project Development Planning Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO - May 2010 $38,375,050 • 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. The projected uses and sources of funds in connection with Capital Project Development over the next five years are summarized as follows: Table 5 – Capital Project Development FY 2011 to FY 2015 - - - - - - - - - - - - - - - - - - - - - (YOE $,000) - - - - - - - - - - - - - - - - - - - - - - 2011 USES OF FUNDS CPDA Tempe South AA / DEA / CE / PD (Pre-NEPA) Phoenix West AA / DEIS / CE / Early Action Glendale AA Northeast Phoenix AA / DEIS / CE South Central System Studies Design Criteria Project Development Total Uses $ 2012 1,233 885 1,941 750 500 1,245 3,011 9,565 $ 1,531 2,280 596 500 750 50 869 6,576 2013 $ 1,567 1,219 1,254 750 50 833 5,673 2014 $ 1,660 627 1,289 750 50 740 5,116 2015 $ Total 1,709 750 50 691 3,200 $ 7,701 885 4,221 3,192 2,543 1,000 4,245 200 6,143 $30,130 2,200 500 500 3,200 $ SOURCES OF FUNDS Chandler Glendale Peoria Phoenix $ FTA 5339 CMAQ PTF MAG RPTA Total Sources Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO $ 90 55 100 1,400 750 6,170 500 500 9,565 19 $ $ 100 400 5,076 500 500 6,576 $ $ 4,673 500 500 5,673 $ $ 4,116 500 500 5,116 $ $ May 2010 90 55 200 1,800 750 22,235 2,500 2,500 $30,130 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 2011 through FY 2015 * * * Note: Staffing estimates are preliminary. Authorization of positions by the METRO Board is executed by adoption of the Annual Budget. Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO 20 May 2010 FIVE-YEAR CAPITAL PROGRAM – FY 2011 THROUGH FY 2015 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 Central Mesa – 3.1 mile alignment extending eastbound to downtown Mesa Tempe South – 2.5 mile alignment extending southward in the vicinity of Rural Road to the Superstition Freeway; Phoenix 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 2011 Operating and Capital Budget. The Capital Program report is a multiple year (five fiscal years) forecast of the capital projects managed by METRO. 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 Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO 21 May 2010 All Capital Projects -- Uses of Funds: METRO 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 $623 million through the five-year planning horizon. These uses of funds are summarized as follows: Uses of Funds - Capital Projects CP/EV LRT Project NW Ext Phase 1 Central Mesa Tempe South Phx West FY 2011-15 3.8% 18.2% 29.1% 11.9% 14 LRV's CNPA NPR Utilities Systemwide Improvements 2.6% 0.7% 5.1% 0.4% PTF Bond Debt Service: Principal Payments Interest Payments Total Capital Costs Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO 0.0% 4.8% 3.8% 100.0% 22 YOE ($,000) $ 23,632 113,039 180,954 73,945 122,998 $ 15,897 4,428 31,679 2,190 29,973 23,854 622,589 May 2010 All Capital Projects -- Sources of Funds: Funding is derived from two primary sources: 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): Sources of Funds - Capital Projects FY 2011-15 Phoenix -6.6% Tempe -5.1% Mesa -0.6% Glendale 0.0% All Others 0.0% Public Transportation Funds 52.9% Federal Revenues: 0.0% FTA Sec 5309 31.6% CMAQ 14.2% Other Federal 13.7% Total Capital Revenues 100.0% YOE ($,000) $ (41,158) (32,025) (3,730) 329,384 $ 196,583 88,230 85,306 622,589 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 Public Transportation Fund revenues to reimburse regional assets. Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO 23 May 2010 Table 5 – Five-Year Capital Budget / All Projects ($000) Pre 2011 USES OF FUNDS CP/EV LRT Project Northwest Extension Phase 1 Central Mesa Tempe South Phx West Subtotal HCT Corridors 14 LRV's CNPA and ARRA Projects Non-Prior Rights Utilities Systemwide Improvements 1,388,493 78,000 1,466,493 42,186 122,216 80,561 570 PTF Bond Debt Service: Principal Payments Interest Payments Total Capital Costs 1,186 2,755 1,715,967 SOURCES OF FUNDS Phoenix Tempe Mesa Glendale All Others Subtotal Public Transportation Funds Sales Tax Proceeds Bond Proceeds Federal Revenues: FTA CMAQ Other Federal Subtotal Federal Total Revenues 2011 2012 2013 2014 2015 Total FY 2011-15 18,272 5,125 14,001 45 37,443 4,428 56 350 5,360 51,049 22,531 5,118 34,277 118,335 13,671 357 56,866 37,069 15,181 19,794 128,910 16,743 500 51,222 24,874 32,952 109,048 15,897 1,209 483 56,131 28,772 35,930 120,833 500 1,412,125 191,039 180,954 73,945 122,998 1,981,061 58,083 126,644 112,240 2,760 23,632 113,039 180,954 73,945 122,998 514,569 15,897 4,428 31,679 2,190 2,664 2,748 47,688 2,771 2,724 137,858 2,910 3,400 152,462 10,749 7,675 145,060 10,880 7,308 139,520 31,159 26,609 2,338,557 29,973 23,854 622,589 685,522 173,796 31,376 890,694 (49,968) (30,627) (3,506) (84,101) 9,558 (1,398) (224) 7,935 11,438 11,438 (12,186) (12,186) - 644,364 141,771 27,646 813,780 (41,158) (32,025) (3,730) (76,914) 239,573 217,691 21,882 57,279 41,221 16,058 50,679 44,515 6,164 55,729 47,096 8,632 99,134 49,828 49,307 66,563 52,718 13,845 568,958 453,069 115,888 329,384 525,950 59,750 585,700 1,715,967 61,250 11,000 2,261 74,511 47,688 17,799 13,827 47,618 79,244 137,858 35,000 14,869 35,427 85,296 152,463 35,507 22,605 58,112 145,060 47,027 25,930 72,957 139,520 722,533 147,980 85,306 955,819 2,338,557 196,583 88,230 85,306 370,119 622,589 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 Public Transportation Fund revenues to reimburse regional assets. Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO 24 May 2010 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 Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO 25 May 2010 CP/EV LRT Sources and Uses of Funds: The total capital cost of the CP/EV LRT project over the FY 1999 to FY 2015 period is $1.412 billion in year of expenditure dollars. Capital costs planned for this project are summarized as follows: CPEV Initial 20 mile Segment CAPITAL COSTS Project Costs Total Capital Costs CAPITAL REVENUES FTA Section 5309 CMAQ Total Federal Phoenix Tempe Mesa PTF Revenue Total Local Total Capital Revenue 2013 - - - - - ($,000) - - - 2014 2015 TOTAL $ 5,360 $ 5,360 $ $ - $$- $$- $ 1,412,125 $ 1,412,125 $ $ - $- $- $ - - - 418,367 126,524 21,533 198,751 765,175 $ - $- $- $ 1,412,125 Pre-2011 2011 2012 $1,388,493 $1,388,493 $18,272 $18,272 $ 525,950 59,750 585,700 $61,250 61,250 467,829 158,700 25,263 151,001 802,793 $1,388,493 Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO (47,110) (30,777) (3,506) 38,415 (42,978) $18,272 26 - (2,352) (1,398) (224) 9,335 5,360 $ 5,360 May 2010 587,200 59,750 646,950 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; a 3.1-mile light rail extension east into downtown Mesa, 2.5-miles into south Tempe, 5-miles west into Glendale, 11-miles into west Phoenix and 12-miles into northeast Phoenix. 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 was completed on the Central Mesa LRT Extension in FY 2010. Design will begin by the beginning of FY 2011. Additionally, planning will be completed on the Tempe South and Phoenix West corridors in early FY2011. The Glendale corridor began planning in FY 2010 and will continue through FY 2011. Funding for future projects has two phases: 1) Planning Budget Phase: Alternative Analysis and the draft environmental document are funded from Federal Section 5339 funds, Member City contributions, and PTF. 2.) Capital Budget Phase: After entry into Preliminary Engineering, costs are included in the capital budget and funded by Federal, regional, and local sources. Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO 27 May 2010 Northwest Extension -- 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 METRO 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 3.2mile phase, along 19th Avenue from Montebello Avenue to Dunlap Avenue, will be funded entirely from locally funds. As a result of the economic downturn, construction of the Northwest Extension will be completed in phases. Transit funding comes from sales tax revenue, of which collections have experienced significant decreased. This decrease has caused the city of Phoenix to adjust the project schedule. The first phase will complete all right-of-way real estate acquisition and construction of the planned landscaping elements to buffer the surrounding neighborhoods by early 2011. The economic situation will be closely monitored and light rail construction will begin as soon as it is financially feasible. Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO 28 May 2010 Northwest Extension Sources and Uses of Funds: The total capital cost of the Northwest Extension project over the FY 2005 to FY 2015 period is budgeted to be approximately $191.0 million, excluding financing costs. Northwest Extension CAPITAL COSTS Project Costs Total Capital Costs CAPITAL REVENUES FTA Section 5309 Other Federal Total Federal Phoenix T 2000 Transit Tax PTF Revenue Phoenix Water Total Local Total Capital Revenue - - - - - - - ($,000) - - - 2014 2015 TOTAL Pre-2011 2011 2012 2013 $78,000 $78,000 $ 5,125 $ 5,125 $51,049 $51,049 $ 56,866 $ 56,866 $ $ - $ $ - $ 191,039 $ 191,039 $ $ - $ 29,139 29,139 $ 35,427 35,427 $ - $ - $ 74,500 3,500 78,000 5,125 5,125 210 21,700 21,910 438 21,000 21,438 - - 80,273 3,500 42,700 126,473 $78,000 $ 5,125 $51,049 $ 56,865 $ - $ - $ 191,039 - 64,566 64,566 Central Mesa LRT Extension -- The Central Mesa LRT Extension will improve mobility and provide additional capacity in the Main Street corridor in Mesa. In addition, the project will connect the Central Mesa corridor with major activity and employment centers located east and west of the project corridor, such as Downtown Phoenix, Downtown Tempe, Sky Harbor International Airport, Arizona State University, proposed Mesa Gateway Area, and the ASU East Polytechnic campus. The project will also enhance connectivity to the Mesa Link BRT (with in-street mixed traffic operations) that currently operates as a feeder to the end-of-line Sycamore LRT station in Mesa and serves East Mesa including Superstitions Spring Mall. Planning for the Central Mesa corridor began spring 2007 with an Alternatives Analysis (AA). The AA gathered technical data and community input to help determine which route and transit technology would best serve Mesa. Eight transit options were evaluated. Through analysis, the locally preferred alternative (LPA) was identified. The recommended alternative is to extend light rail on Main Street to Gilbert Road. Phase I implementation is to extend light rail east of Mesa Drive to LeSueur by 2016. Phase II is to extend to Gilbert Road at a future date. Currently, the extension to Gilbert Road is not financed or programmed in the Proposition 400 plan. The LPA was approved by the Mesa City Council, METRO Board of Directors, and the Maricopa Association of Governments in mid 2009. This extension is part of the Regional Transportation Plan and funded by Proposition 400 regional sales tax and a federal grant that has been applied for by METRO. Design for the Central Mesa LRT Extension will begin in FY 2011. Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO 29 May 2010 Central Mesa LRT Extension Alignment Central Mesa Extension Sources and Uses of Funds: The total capital cost of the Central Mesa Extension project over the FY 2011 to FY 2015 period is budgeted to be approximately $181 million, excluding financing costs. - - - - - - - ($,000) - - - Central Mesa Extension CAPITAL COSTS Project Costs Total Capital Costs CAPITAL REVENUES FTA Section 5309 CMAQ Total Federal PTF Revenue Total Local Total Capital Revenue 2011 2012 2013 2014 2015 TOTAL $14,001 $14,001 $22,531 $22,531 $ 37,069 $ 37,069 $ 51,222 $ 51,222 $ 56,131 $ 56,131 $ 180,954 $ 180,954 $ 11,000 11,000 $10,799 5,210 16,009 $ 20,000 7,319 27,319 $ 17,007 8,205 25,212 $ 19,027 9,180 28,207 $ 3,001 3,001 6,522 6,522 9,750 9,750 26,010 26,010 27,924 27,924 73,207 73,207 $14,001 $22,531 $ 37,069 $ 51,222 $ 56,131 $ 180,954 Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO 30 May 2010 66,833 40,914 107,747 Tempe South Corridor -- The Tempe South Corridor project will improve mobility and provide additional capacity in the corridor. Tempe had the second highest percentage of vehicle miles traveled (VMT) on streets under congested conditions in the metropolitan area, higher than the regional average. Congestion is expected to worsen in the future. About 282,200 vehicle miles or 39% of the total VMT was on freeways that were over capacity within the study area compared to 30% (or 1,944,150 vehicle miles) of the same in the region in 2004. By 2030, the corresponding percentages for the study area and the region respectively will be 45% and 51%. In addition, the project is intended to connect the Tempe South corridor with major activity and employment centers located west and east of the project corridor, such as Downtown Phoenix, Sky Harbor International Airport, Arizona State University and Downtown Mesa through the 20 mile LRT starter. Planning for the Tempe South corridor began summer 2007 with an Alternatives Analysis (AA). The Tempe South corridor study has evaluated a range of high capacity transit technologies (e.g. bus rapid transit, commuter rail, light rail transit and modern streetcar) and potential north-south alignments (e.g., Mill Avenue/Kyrene Road, Rural Road and McClintock Drive). METRO and the cities of Tempe and Chandler are continuing to evaluate the high capacity transit alternatives for the Tempe South corridor. The schedule calls for the completion of an Alternatives Analysis and the selection of a Locally Preferred Alternative (LPA) that will determine technology and alignment for the Tempe South Corridor in the fall of 2010. This extension is part of the Regional Transportation Plan and funded by Proposition 400 regional sales tax and a federal grant that will be applied for by METRO. Design for the Tempe South Corridor project will begin in FY2011. Tempe South Extension Sources and Uses of Funds: The total capital cost of the Tempe South Extension project over the FY 2011 to FY 2015 period is budgeted to be approximately $73.9 million, excluding financing costs. Tempe South Extension CAPITAL COSTS Project Costs Total Capital Costs CAPITAL REVENUES FTA Section 5309 CMAQ 2011 2013 2014 - - - - - - ($,000) - - - 2015 TOTAL $ $ - $ 5,118 $ 5,118 $ 15,181 $ 15,181 $ 24,874 $ 24,874 $ 28,772 $ 28,772 $ $ 73,945 73,945 $ - $ 5,000 5,000 $ 5,000 7,550 12,550 $ 8,500 9,400 17,900 $ 18,000 3,750 21,750 $ 31,500 25,700 57,200 - 118 118 2,631 2,631 6,974 6,974 7,022 7,022 - $ 5,118 $ 15,181 $ 24,874 $ 28,772 Total Federal PTF Revenue Total Local Total Capital Revenue 2012 $ Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO 31 May 2010 16,745 16,745 $ 73,945 Phoenix West Extension -- The Phoenix West Extension will improve mobility and provide additional capacity in the I-10 corridor in West Phoenix. In addition, the project will connect the West valley with major activity and employment centers located near Downtown Phoenix, such as State Capitol, Maricopa County and City of Phoenix governmental mall. The project will also enhance regional connectivity by connecting with the METRO starter line. Planning for the Phoenix West corridor began spring 2007 with an Alternatives Analysis (AA). The AA is evaluating possible routes to connect the METRO starter line with 79th Ave in the vicinity of I-10 and the type of transit mode (either Light Rail Transit or Bus Rapid Transit) to make that connection. In July 2008, MAG Regional Council approved the recommendation for high capacity transit improvements (BRT or LRT) in the median of I-10, west of I-17. METRO is currently evaluating the various LRT and BRT alternatives that would connect the alignment along I-10 freeway to Downtown Phoenix. This extension is part of the Regional Transportation Plan and funded by Proposition 400 regional sales tax and a federal grant that has been applied for by METRO. Locally Preferred Alternative is anticipated to occur in Fall 2010 which will identify a route, transit mode and some station locations. Following the formal adoption of the LPA, METRO will generate detailed engineering designs of the selected alignment and station layouts and begin the environmental evaluation phase in compliance with the National Environmental Policy Act. Phoenix West Extension Sources and Uses of Funds: The total capital cost of the Phoenix West Extension project over the FY 2011 to FY 2015 period is budgeted to be approximately $123.0 million, excluding financing costs. The early action program, forecasted for FY 2012, is contingent upon award of federal grants currently being investigated in conjunction with the City of Phoenix. - 2011 Phoenix West Extension CAPITAL COSTS Project Costs Total Capital Costs CAPITAL REVENUES FTA Section 5309 Other Federal CMAQ $ $ $ Total Federal PTF Revenue Total Local Total Capital Revenue $ - - - - - - ($,000) - - - 2015 TOTAL 2012 2013 2014 $34,277 $34,277 $ 19,794 $ 19,794 $ 32,952 $ 32,952 $ 35,930 $ 35,930 $ 122,998 $ 122,998 $ 7,000 18,479 3,617 29,096 $ 10,000 10,000 $ 10,000 5,000 15,000 $ 10,000 13,000 23,000 $ $ 45 45 5,181 5,181 9,794 9,794 17,952 17,952 12,930 12,930 45,902 45,902 45 $34,277 $ 19,794 $ 32,952 $ 35,930 $ 122,998 45 45 - Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO 32 37,000 18,479 21,617 77,096 May 2010 Appendix A -- The 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 Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO 33 May 2010 the proposed budget. Once the proposed annual budget and five-year capital plan have been published, the METRO Board provides final review and adoption. Budget Timelines: The 2010/2011 process is outlined below, with preliminary planning beginning in February and with budget adoption scheduled for May 2010. Major phases of this process are outlined below: • • • • • Feb 15th -- Budget Templates to City Staff for Revenue Forecast April 22nd -- 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 5th – Budget Submitted to RMC 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 st Apr 1 thru April 30th METRO Board Review and Comment May Board Meeting Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO Review Budget Formally Adopted 34 May 2010 Appendix B –Listing of CNPA by City – March 2010 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 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 756 66 6,084 12,180 4,467 803 338 82 62 92 67 419 2,438 5,097 7 11 32,969 10,453 515 219 1,544 379 166 50 6 80 13,412 2,995 23 756 357 57 57 4,245 13,947 7,778 19,904 6,962 143 634 445 86 49,899 Total - City of Phoenix Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO ($,000) 100,525 35 May 2010 Appendix B –Listing of CNPA by City – March 2010 (Continued) City of Tempe 5th / College Transit Center COT SRP Prior Rights TC Relo COT Waterline COT Add'l Comm Conduits: Dorsey Lane LS5 CO13 COT ASU Pedestrian Signal Parking Facility at 5th/Farmer COT Wtrline @ Cremery Rt,Stadium Dr, Apache Blvd COT Additional Street Lighting COT Add'l Conduit @ McClintock/Apache Rubber Asphalt LS 5 Storm Drain Extension Rubber Asphalt - Tempe McClintock Park and Ride - COT Tempe Other Admin Costs COT CNPA-Misc Changes Directed by City of Tempe COT CNPA-Apache/McClintock Park & Ride Garage Fiber Optic COT LS4-COT, Cathodic Protection University Drive Station Bus Interface Veteran's Way (5th) / College TC Misc Revisions CNPA COT Bus Shelter Electrification (LS4 CO#89) CNPA COT Wash/Ctr Pkwy Station TLB Lighting Change Orders COT CNPA-Add'l Mill/Overlay: Apache, Rural-Price COT CNPA-Price/Apache PnR Modifications (PNR-RB) COT CNPA - Price/Apache PnR Waterline COT CNPA-Landscape Island at Terrace /Apache COT CNPA-Replace Bougainvilleas on Stadium Drive Tempe Market Analysis Relocation of LS5 Field Offices Total City of Tempe City of Mesa Main / Sycamore Transit Center Fiber Optic COM M2 - Mesa Add'l Grind & Overlay M3 - Mesa Add'l Grind & Overlay on Dobson Mesa Market Analysis CNPA - Local Work Jurisdiction Total City of Mesa Various ASU Logo Additions - Station Finshes ASU Steam Line Fiber Optic ASU CNPA-Rojo Lofts Property CityScape CNPA in LS3 APS Archaeological Support at 48th Bridge Total ASU 746 20 48 28 109 109 82 280 8 522 115 464 5,581 723 16 315 436 140 7 10 4,057 12 569 58 102 8 22 44 86 14,717 4,559 735 247 204 19 5,764 72 8 991 20 24 58 1,173 122,179 Grand Total All CNPAs Five-Year Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO ($,000) 36 May 2010 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 Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO 37 May 2010 Appendix C – Glossary of Terms and Acronyms (Cont’d) 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 METRO. 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 Operating Forecast and Capital Program - FY 2011 through FY 2015 METRO 38 May 2010