ADOPTED FY 2013 OPERATING AND CAPITAL BUDGET FIVE-YEAR OPERATING FORECAST AND CAPITAL PROGRAM FY 2013 – FY 2017 May 17, 2012 Adopted FY 2008-09 Operating and Capital Budget METRO 0 May 2008 Valley Metro Rail, Inc. Phoenix, Arizona Adopted Operating and Capital Budget Fiscal Year 2012/2013 Five-Year Operating Forecast and Capital Program FY 2013 through FY 2017 (July 1, 2013 through June 30, 2017) Board of Directors Chairman – Mayor Greg Stanton, Phoenix Vice Chairman – Councilmember Dennis Kavanaugh, Mesa Councilmember Shana Ellis, Tempe Councilmember Rick Heumann, Chandler Mayor Elaine Scruggs, Glendale Executive Management Team Stephen R. Banta, Chief Executive Officer Raymond Abraham, Chief Operations Officer John Farry, Community & Government Relations Director Wulf Grote, Planning & Development Director Jay Harper, Chief of Safety and Security Mike Ladino, General Counsel John McCormack, Finance & Administration Director Adopted FY 2012-2013 Operating and Capital Budget METRO i May 2012 Annual Budget Table of Contents METRO Organization .................................................................................................... 1 METRO Vision ............................................................................................................... 2 FY 2012 Accomplishments ........................................................................................... 2 FY 2013 Goals and Objectives ..................................................................................... 4 Rail Operations Service Plan ...................................................................................... 6 Total Financial Program ............................................................................................... 7 Budget Analysis ....................................................................................... 9 Staffing Requirements ................................................................................................ 10 FY 2012 - 2013 Budgets: Operating Budget Revenue Operations Budget ................................................................. 12 Future Project Development Budget .................................................... 13 Agency Operating Budget..................................................................... 14 Agency Overhead Allocation ................................................................ 15 Capital Budget 20-Mile METRO Initial Segment Budget ............................................... 16 Northwest Extension Phase I Budget .................................................. 17 Central Mesa LRT Extension Budget ................................................... 18 Tempe Streetcar Capital Project Budget ............................................. 19 Non-Prior Rights Utilities Relocation Budget...................................... 20 Systemwide Improvements................................................................... 21 Funds Flow FY 2013 .................................................................................................... 22 METRO Agency Organizational Chart ....................................................................... 23 Adopted FY 2012-2013 Operating and Capital Budget METRO ii May 2012 5 Year Plan Table of Contents 1. Executive Summary METRO Services ................................................................................................ 25 • Operations & Maintenance ...................................................................... 26 • Planning & Development ........................................................................ 26 Goals (FY 2013 thru FY 2017)............................................................................ 27 Five-Year Plan Summary ................................................................................... 30 2. Five-Year Operating Forecast Uses & Sources of Funds ................................................................................... 33 Operations & Maintenance Cost Estimate FY 2013 - 2017 ................................ 36 Five Year Fares, Costs and Member City Funding ............................................. 37 Project Development Planning ........................................................................... 37 3. Five-Year Capital Program All Projects.......................................................................................................... 39 CP/EV LRT Project ............................................................................................. 43 High Capacity Transit Projects ........................................................................... 45 Northwest Extension........................................................................................... 46 Central Mesa Extension ..................................................................................... 48 Tempe Streetcar ................................................................................................. 49 Phoenix West Extension ..................................................................................... 50 Systemwide Improvements................................................................................. 52 Five-Year Staffing Plan ....................................................................................... 53 4. Appendix A-Budget Process............................................................................................... 54 B-Glossary of Terms and Acronyms ................................................................... 56 FY 2013-2017 Operating and Capital Budget METRO iii May 2012 METRO ORGANIZATION Valley Metro Rail, Inc. (METRO) is a public non-profit corporation whose members are the cities of Chandler, Glendale, Mesa, 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 METRO Staff includes employees managing operations, performing maintenance, directing planning, design and construction of new rail lines. METRO staff are supported by contracted personnel with specialized experience in light rail planning, design, construction, and operations. The following chart depicts the policy organization for METRO and the relationships to key stakeholders. METRO Policy Organization Adopted FY 2012-2013 Operating and Capital Budget METRO 1 May 2012 METRO 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 customer service, quality and safety, which enhances quality of life and is a point of pride for our community. FY 2012 ACCOMPLISHMENTS • METRO ridership continues to climb serving 13.2 million riders in CY 2011, 4.8% percent more than in CY 2010. Growth continues in 2012. Adopted FY 2012-2013 Operating and Capital Budget METRO 2 May 2012 • Delivered passenger service achieving the following results: Benchmark On Time Performance Operating Cost Per Boarding Average Fare • • • • • • • • • Target 95% $2.92 $0.80 2011 Actual 98% $2.42 $0.80 Launched a solar-cooled light rail station at 3rd Street/Washington in partnership with NRG and the City of Phoenix in July. Served nearly 200,000 riders during Major League Baseball’s All-Star week with five, full All-Star train wraps and took part in the All-Star Red Carpet Parade. Developed a mobile website in conjunction with Local First Arizona that shares the locally-owned restaurants and retail within a half-mile of the line. Received environmental clearance in July and $35.5 million in the FY 2012 federal appropriations bill signed in November for the 3.1-mile Central Mesa light rail extension. Received a $1 million federal grant to conduct a 24-month Alternatives Analysis on the South Central Phoenix corridor. Received a $2.7 million TIGGER (Transit Investments for Greenhouse Gas and Energy Reduction) grant award for a solar shade structure at the maintenance facility. Valley Metro RPTA and METRO light rail Boards of Directors select Steve Banta as the single CEO for both organizations effective March 1, 2012. Selected Valley Transit Constructors, joint venture of Kiewit and Mass Electric, as the Design-Build team to continue designing and constructing the Central Mesa extension. Received Government Finance Officers Association Award (GFOA) for Comprehensive Annual Financial Report (CAFR) for fiscal year ended June 30, 2010 Adopted FY 2012-2013 Operating and Capital Budget METRO 3 May 2012 FY 2013 GOALS AND OBJECTIVES Goals are based on the following keys to a successful transportation system that connects people to life: • A quality human resource • A system in a state of good repair • Customer-focused service • Coordinated and cost-effective system expansion • Sound relationships with public and private stakeholders 1. Collaborate with RPTA staff to build an effective and efficient organization to build and manage the total transit network for the region. 2. Operate a safe, efficient, customer-focused, reliable METRO system. • Maintain an efficient operation that meets established schedules and operational baselines. • Manage an effective safety and security program. • Ensure timely and effective customer communication. • Maximize fare revenues through continued coordination with regional and local entities to ensure effective fare policies across all public transportation modes. • Continue development of information systems to support rail operations. 3. Maintain sound and trusted relationships with public and private stakeholders including improved coordination with all public transportation operators. • Work with other public transportation operators in the region to optimize passenger usage of the entire public transportation system. • Maintain professional relationships with the media resulting in objective news coverage. • Successful implementation of marketing strategies that maximize ridership from event venues (e.g., Phoenix Suns, AZ Diamondbacks, ASU Sun Devils, etc.). • Continue public involvement activities related to future METRO extensions. • Continue to improve and maintain a sound relationship with the FTA to foster federal support for future rail projects. • Maintain sound relationships with Congressional leaders and Arizona delegation members that maximizes federal funding for the METRO system, especially related to the annual appropriations process and the reauthorization of SAFETEA-LU. Adopted FY 2012-2013 Operating and Capital Budget METRO 4 May 2012 4. Expansion of the METRO system through effective planning, design, and construction of the high capacity/light rail transit element of the Regional Transportation Plan. • Commence construction of the Central Mesa and Tempe Streetcar projects. • Advance development of the Northwest Extension. • Advance the development of the Phoenix West and Glendale high capacity/light rail transit corridors that is consistent with agreed upon schedules. • Actively pursue public and private funding opportunities to facilitate implementation of the region’s high capacity transit program. • Actively explore ways to reduce future project costs to address shortfalls in regional funding for the transit program. • Develop corridor planning studies and seek out funding alternatives for the South Central Corridor and Gilbert Road Extension 5. Maintain organizational sustainability and a sound human resource. • Strive to create a work environment where our employees, our most valued assets, are energized by exceeding the expectations of our customers. • Provide professional development and training opportunities as needed to achieve our goals and objectives. • Retain and promote our best people. • Work with regional transit partners to implement administrative efficiencies and develop cost savings through coordination and consolidation of work effort. • Assure strict compliance with state, local and federal laws, regulations and procedures including the application of best practices in all business activities. Adopted FY 2012-2013 Operating and Capital Budget METRO 5 May 2012 RAIL OPERATIONS SERVICE PLAN Service Frequency FY 2013 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 11:00 pm Friday - 6:30 pm to 2:00 am Saturday - 5:00 am to 7:00 pm Saturday - 7:00 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 Nine weekdays are currently scheduled for holiday schedule frequency (Sunday schedule). Ridership and Fare Revenue: Total Ridership is forecasted at 13.4 million passengers for the year with fare revenues generating $11.256 million. Over the course of the fiscal year 2013, average weekday boardings are forecasted at 41,236 while Saturday and Sunday average ridership are forecasted at 31,407 and 21,200 per day respectively. Annual Ridership / Fares Total Rides Average Weekday Saturday Sunday 41,236 31,407 21,200 Total Ridership and Fare Revenue Fare Assumption 10,350,356 $ 1,947,263 $ 1,102,381 $ 0.84 $ 8,694,299 0.84 $ 1,635,701 0.84 $ 926,000 13,400,000 $ 0.84 $ 11,256,000 Average fare per ride is forecasted at $0.84 cents per ride, an increase of 4 cents per ride over FY 2012’s budget. The ridership forecast is 6.8% higher than the FY 2012 plan. Adopted FY 2012-2013 Operating and Capital Budget METRO 6 May 2012 TOTAL FINANCIAL PROGRAM The FY 2013 Operating and Capital Budget has been prepared with the goal of delivering a fiscally prudent, balanced budget. Last year, the Board approved a total of $85.4 million for the FY 2012 Budget. Total expenditures for FY 2013 are estimated to be $168.2 million. The unexpended balance for FY 2012 capital expenditures has been reprogrammed into the project cash flows for expenditure in FY 13 and future years. Uses of Funds - The FY 2013 Budget includes anticipated operating and capital expenditures in the amount of approximately $168.2 million to support program elements during the period of July 1, 2012 through June 30, 2013, as follows: Uses of Funds ($,000) FY 2013 Adopted Operating Activities: Revenue Operations Future Project Development Agency Operating Budget Capital Projects: 20-Mile METRO Initial Segment Northwest Extension Non-Prior Rights Utilities Relocations Other Capital Projects: Central Mesa Extension Tempe Streetcar Extension CNPAs - Mesa Extension Systemwide Improvements Subtotal Capital before Debt Service Capital Project Debt Service: Debt Service - Interest Debt Service - Principal Total Uses of Funds FY 2012 Amended Change 35,293 10,150 1,010 46,453 35,432 8,146 1,084 44,662 (139) 2,004 (74) 1,791 2,550 28,680 10,813 5,301 8,573 2,638 (2,751) 20,107 8,175 49,588 13,324 2,526 8,892 116,373 16,525 4,262 675 37,974 33,063 9,062 2,526 8,217 78,399 2,594 2,771 2,750 - 168,190 85,386 Budget Analysis Note # 1 2 3 4 5 6 (157) 2,771 82,803 Note: See page 9 for budget analysis notes. Adopted FY 2012-2013 Operating and Capital Budget METRO 7 May 2012 Sources of Funds - The FY 2013 Operating and Capital Budget will be funded with a combination of Fare Revenues, Member City contributions, Public Transportation Funds, Federal 5309 New Starts, 5307 and Fixed Guideway Preventative Maintenance, Congestion Mitigation and Air Quality funds (CMAQ), and other local funding. The FY 2013 Budget includes anticipated capital and operating sources of funds in the amount of approximately $168.2 million, as follows: Sources of Funds ($,000) FY 2013 Adopted Operating Activities: Fare Revenue Advertising Revenue Federal 5307 PM Federal FG PM Federal 5339 Federal CMAQ Member Cities MAG / RPTA (RARF) PTF Sales Tax Revenue Capital Projects: FTA - Section 5309 Federal CMAQ TIGGER Federal Grant TIGGER Private Match Member Cities PTF Bond Revenue PTF Sales Tax Revenue Total Sources of Funds FY 2012 Amended Change 11,256 500 783 1,044 24,919 1,382 6,569 46,453 10,436 300 665 996 1,380 100 23,362 1,000 6,422 44,661 820 200 118 (996) (336) (100) 1,557 382 147 1,792 22,600 21,659 2,700 3,300 24,766 18,653 28,059 121,737 3,300 14,410 (12,808) 14,506 21,318 40,726 19,300 7,249 2,700 3,300 37,575 4,147 6,741 81,011 168,190 85,386 82,803 Budget Analysis Note # 7 8 9 10 11 12 Note: See page 9 for budget analysis notes. Negative Sources of Funds reflect Regional PTF reimbursements to Member Cities for the CPEV 20 Mile Initial Segment Capital Project and PTF revenues to reimburse the City of Phoenix for the Phoenix West alternatives analysis. Adopted FY 2012-2013 Operating and Capital Budget METRO 8 May 2012 FY 2012-13 Adopted METRO Operating and Capital Budget BUDGET ANALYSIS The following is an analysis of the major changes in the FY 2013 Proposed Budget versus the FY 2012 Amended Budget. The number in the "Note" column corresponds to the "Note" column in the "Uses of Funds" and "Sources of Funds" tables located in the Total Financial Program. See Pages 7 and 8. Note 1 2 Budget Analysis Planning Support Services to increase in order to support needs of future corridor planning. Corridor costs include Phoenix West ($2.5 million), Glendale ($1 million), South Central ($750,000), and Gilbert Road ($950,000). For Northwest Extension, continuation of final design, utility relocation, and Right of Way Acquisition increase. 3 A significant increase in NPR utility relocation is due to increased activity on the Northwest, Central Mesa, and Tempe Streetcar projects. 4 The Design Build Contractor will commence work on the Mesa Extension during FY13. Other directly related costs are support services and increased Real Estate costs. 5 A Design Build Contractor is anticipated to commence work on the Tempe Streetcar project during FY13. METRO also anticipates incurring $6 million in modifications to existing fleet of LRVs in order to provide service on the Tempe guideway. Solar Shade Canopy will be installed at the Operations and Maintenance Center. Fleetwide LRV door modification program to continue in order to reduce operating expenses related to door glass breakage. Member City Contributions up by $1.9 million over FY12 in order to fund increased future corridor planning activities. Member City funding includes Peoria ($55,000), Phoenix ($150,000), and Mesa ($950,000). The initial Federal Section 5309 grant for the Central Mesa Extension is projected to fund $22.6 million in FY 2013. 6 7 8 9 The $21.7 million CMAQ will fund a portion of the FY13 activities for the Central Mesa Extension ($11 million) and Tempe Streetcar($10.7 million). 10 Federal Funding portion for OMC Solar Shade Canopy work to take place over FY13 and FY14. 11 Private Funding portion for OMC Solar Shade Canopy work to take place over FY13 and FY14. 12 Phoenix to provide Northwest Extension Advance fund in the amount of $28.6 million, to be reimbursed by PTF in FY 2017. Wrap up of CPEV Real Estate costs of $2.6 million to be funded by City of Phoenix. Reimbursement of $10 million to Phoenix for LRV capital lease. Mesa to incur $2.5 million in costs related to CNPA activities for the Mesa Extension. Member City Contributions to fund LRV Door Modification of $1.1M Adopted FY 2012-2013 Operating and Capital Budget METRO 9 May 2012 STAFFING REQUIREMENTS Rail Operations Personnel – With the commencement of new rail design and construction and the requirement to maintain the existing 20 mile system in a state of good repair, METRO is proposing staffing changes as follows: Authorized Positions FY 2012 141 Positions Added: Public Information Specialist Area Coordinator Rail Activation Manager LRV Maintenance Technician I LRV Maintenance Technician II Network Support Analyst Traction Power Sys Tech Safety Specialist Revised Positions for FY 2013 1 2 1 2 1 1 3 1 153 Reasons for Staffing Changes 1. As new extensions are planned and constructed public outreach activities increase to communicate construction schedules and address citizen and business concerns. With the Central Mesa, Tempe Streetcar, Phoenix West and Northwest Extension projects moving forward the need for staff is increasing and will be sustained over the coming years. With the growth of rail ridership, increased communications with customers are needed to improve service. The Communication Specialist (1 FTE) and Area Coordinator (2 FTE) positions will fulfill this need and will reduce consulting costs. 2. With the design and construction of new rail extensions the interface between existing Operations and new construction must coordinated to ensure a seamless startup and higher level of operating efficiency to serve new rail passengers. The Rail Activation Manager will be the lead staff position to develop a comprehensive implementation plan and provide technical support to the Chief Operations Officer. Since the line opening in December 2008, METRO employees have successfully maintained the LRT system elements. METRO experienced minimal failures throughout the alignment and had assistance from contractors for repairs covered under warranty. As the system ages, METRO has programmed a larger volume of preventive and corrective maintenance hours and staff members required to keep the 20-mile system in the state of good repair. Adopted FY 2012-2013 Operating and Capital Budget METRO 10 May 2012 In FY 2013, three LRV technician positions are being added to fulfill increasing workloads for preventative maintenance activities. Three TES technicians will address increasing PM activities for traction power switchgear, circuit breakers and overhead catenary systems. The Network Support Analyst is required to maintain the train control computer systems which require higher levels of support due to greater data security requirements and upcoming integration of new LRT and streetcar extensions. 3. The Safety Specialist will provide day-to-day support to the Chief of Safety and Security in lieu of hiring consultants in our efforts to improve system and worker safety and comply with ADOT, FTA and OSHA requirements. Staffing Costs – The FY 2013 Budget includes salary, benefit, and corresponding overhead costs based on the following assumptions: 1. 153 FTE Staff 2. Merit increases up to 3% based on employee performance Salary, fringe benefits, HR and payroll costs are paid by METRO to RPTA in accordance with the human resources staffing agreement. Fiscal Impact –The overall salary and fringe benefit cost is $14.0 million for FY 2013. Increases over the FY 2012 Amended Budget include $1.9 million for LRV Maintenance staff (replacing contract staff), 12 new positions add $1.0 million, and wage and fringe benefit increases add $370,000. Organizational Chart – The organization chart (see page 23 of this document) illustrates the METRO management organization. It includes the proposed positions included in the FY 2013 Budget. FIVE-YEAR OPERATING AND CAPITAL PROGRAM The By-Laws of the Corporation call for the Board of Directors to approve a Five-Year Operating and Capital Program annually, which identifies anticipated operating costs, capital projects and costs, and the associated funding sources. The FY 2013 – FY 2017 Five-Year Operating and Capital Program will be completed and submitted to the Board of Directors for approval along with the FY 2013 Operating and Capital Budget. (see page 25) Adopted FY 2012-2013 Operating and Capital Budget METRO 11 May 2012 FY 2012-13 Adopted METRO Revenue Operations Budget 2012/2013 Adopted Budget Sources of Funds Mesa Fare Revenue Phoenix Fare Revenue Tempe Fare Revenue Federal 5307 PM Federal Fixed Guideway Preventative Maintenance Mesa Advertising Phoenix Advertising Tempe Advertising Mesa Base Cost Contributions Phoenix Base Cost Contributions Tempe Base Cost Contributions Mesa Local Security Phoenix Local Security Tempe Local Security $ 1,039,430 6,924,205 3,292,366 782,892 24,450 335,400 140,150 595,510 15,503,559 6,079,283 76,306 499,413 35,292,962 $ Expenditures Salaries and Fringe Benefits RPTA Overhead Transportation Contractors Labor & Materials Fare Inspection & Security Propulsion Power Vehicle Maintenance Contractor Labor & Materials Systems & Facilities Maintenance Contractors SFM Material / Supplies / Other Direct Costs Utilities General & Administrative Costs Consultants Liability Insurance Contingency Reserve LRT project capital outlay $ 8,626,481 555,698 9,610,616 2,615,573 2,346,719 1,177,104 1,771,828 1,875,252 1,409,378 2,188,177 452,180 1,635,456 650,000 378,500 35,292,962 $ 2011/2012 Amended Budget $ $ 971,590 6,491,037 2,973,462 664,840 996,108 14,670 201,240 84,090 533,308 14,152,832 5,652,770 381,075 1,261,037 1,053,355 35,431,414 $ 6,246,784 313,030 9,849,722 3,567,841 2,594,381 3,768,071 1,681,513 1,542,512 1,295,397 1,918,251 490,380 1,351,378 713,413 98,740 35,431,414 Amount Increase/ (Decrease) $ 67,840 433,167 318,904 118,052 (996,108) 9,780 134,160 56,060 62,203 1,350,727 426,513 (304,769) (1,261,037) (553,942) (138,451) $ 2,379,696 242,668 (239,106) (952,268) (247,662) (2,590,967) 90,315 332,740 113,981 269,927 (38,200) 284,078 (63,413) 279,760 (138,451) Allocation of Operating Costs Phoenix Base Costs Regional Security Local Security $ 21,919,993 1,368,335 23,288,327 (7,784,769) 15,503,559 65.986% Less Fares,Advertising & Fed PM Distributed Phoenix Net Contribution Tempe Base Costs Regional Security Local Security 28.988% Less Fares,Advertising & Fed PM Distributed Tempe Net Contribution Mesa Base Costs Regional Security Local Security 5.026% Less Fares,Advertising & Fed PM Distributed Mesa Net Contribution Total Operating Costs Adopted FY 2012-2013 Operating and Capital Budget METRO $ 21,391,783 567,490 1,261,037 23,220,310 (7,806,441) 15,413,869 $ 528,210 800,845 (1,261,037) 68,017 21,673 89,690 9,159,472 571,771 499,413 10,230,656 (3,651,960) 6,578,696 8,938,726 237,160 1,053,355 10,229,241 (3,523,116) 6,706,125 220,746 334,611 (553,942) 1,415 (128,845) (127,429) 1,597,924 99,749 76,306 1,773,979 (1,102,163) 671,816 1,558,438 42,350 381,075 1,981,863 (1,067,480) 914,383 39,487 57,399 (304,769) (207,884) (34,683) (242,567) 35,292,962 12 $ $ 35,431,414 $ (138,451) May 2012 FY 2012-13 Adopted Future Project Development Budget 2012/2013 Adopted Budget Sources of Funds FTA - Section 5339 Chandler Peoria * Phoenix * Mesa * MAG RPTA (RARF/Other) PTF Revenue Sales Tax FHWA - CMAQ $ 1,044,000 55,000 150,000 950,000 500,000 882,000 6,568,994 10,149,994 $ Expenditures Salaries and Fringe Benefits RPTA Overhead Consulting COP Liaison Consultants - PM/CM Consultants - Planning Support Consultants - Design & Construction Support Consultants - Other Consultants - Planning/Environmental Advertising Printing Public meetings & information Other direct expenditures Local meetings & mileage Business Travel LRT project capital outlay Agency Overhead Allocation $ 2,174,609 142,325 75,000 350,000 2,460,000 300,000 198,500 3,500,000 11,000 11,750 7,000 6,500 500 19,200 61,100 832,510 10,149,994 $ 2011/2012 Amended Budget $ $ $ $ 1,380,000 98,000 55,000 (1,209,000) 300,000 500,000 500,000 6,421,681 100,000 8,145,681 2,358,694 170,920 258,500 4,563,190 7,000 5,000 15,000 5,500 2,300 20,700 24,520 714,357 8,145,681 Amount Increase/ (Decrease) $ $ $ $ (336,000) (98,000) 1,359,000 650,000 382,000 147,313 (100,000) 2,004,313 (184,085) (28,595) 75,000 350,000 2,460,000 300,000 (60,000) (1,063,190) 4,000 6,750 (8,000) 1,000 (1,800) (1,500) 36,580 118,153 2,004,313 * City of Peoria funding for the Peoria Transit Study to be funded from existing cash reserve. * City of Phoenix funding provides local match for South Central Corridor study ($150,000). * Glendale Corridor Alternatives Analysis is anticipated to be funded with Federal Sec 5339 ($444,000) and PTF ($356,000). * City of Mesa funding provides Gilbert Road Environmental Assessment. Note: Future Project Development includes expenditures funded by the Public Transportation Fund for the development of capital projects as listed in the Regional Transportation Plan. These expenditures include environmental and alternatives analysis studies necessary to qualify the capital projects for federal funding. Adopted FY 2012-2013 Operating and Capital Budget METRO 13 May 2012 FY 2012-13 Adopted Agency Operating Budget 2012/2013 Adopted Budget Sources of Funds Chandler Glendale Mesa Phoenix Tempe $ 30,299 30,299 126,246 504,983 318,140 1,009,967 $ Expenditures Salaries and Fringe Benefits RPTA Overhead Consultants - Other Conferences Business Travel Advertising Printing Public meetings & information Other direct expenditures LRT audit and accounting costs Agency Overhead Allocation $ 265,622 92,323 275,000 10,500 30,500 500 3,750 50,500 143,050 36,000 102,222 1,009,967 $ 2011/2012 Amended Budget $ $ $ $ 32,512 32,512 135,465 541,860 341,372 1,083,720 402,898 104,195 219,000 10,500 38,500 500 3,750 38,000 92,850 50,000 123,527 1,083,720 Amount Increase/ (Decrease) $ $ $ $ (2,213) (2,213) (9,219) (36,877) (23,232) (73,753) (137,276) (11,872) 56,000 (8,000) 12,500 50,200 (14,000) (21,305) (73,753) Note: The Cities of Chandler and Glendale contribute $50,000 each annually to METRO. $30,299 is applied to Agency Operating funds and the balance of the funds are held by METRO for future project studies to be used when requested by the Member City. Adopted FY 2012-2013 Operating and Capital Budget METRO 14 May 2012 FY 2012-13 Adopted Agency Overhead Allocation 2012/2013 Adopted Budget Allocation of Costs Agency Overhead Allocation: Revenue Operations Northwest Extension Central Mesa Tempe South Agency Operating Future Projects NPR Utilities Systemwide Improvements $ 377,597 108,911 303,286 199,826 102,222 832,510 16,667 14,731 1,955,749 $ Expenditures Salaries & Fringes RPTA Overhead Building Rent Building Rent Sublease IT Services and Consultants Equipment Leases Equipment Maintenance Office Supplies Telecommunication Services Employee Development Vehicle Related Other Office Expense LRT project capital outlay $ 150,982 9,847 1,408,852 (566,071) 231,680 63,792 34,700 92,949 51,819 127,500 18,000 3,700 328,000 1,955,749 $ Adopted FY 2012-2013 Operating and Capital Budget METRO 15 2011/2012 Amended Budget $ $ $ $ 284,994 265,203 125,764 123,527 714,357 13,992 1,527,838 69,000 5,000 1,368,000 (552,593) 193,000 60,000 30,000 30,000 40,000 82,250 9,000 1,000 193,181 1,527,838 Amount Increase/ (Decrease) $ $ $ $ 92,603 108,911 38,082 74,062 (21,305) 118,153 2,674 14,731 427,911 81,982 4,847 40,852 (13,478) 38,680 3,792 4,700 62,949 11,819 45,250 9,000 2,700 134,819 427,911 May 2012 FY 2012-13 Adopted 20-Mile METRO Initial Segment Budget 2012/2013 Adopted Budget Sources of Funds Local Match - Mesa Local Match - Phoenix Local Match - Tempe PTF Revenue - Sales Tax $ 2,445 2,533,540 14,015 2,550,000 $ 50,000 2,500,000 2,550,000 Expenditures Consultants - Planning/Environmental Real estate acquisition Printing LRT legal services 2011/2012 Amended Budget $ (232,911) 1,614,330 (1,335,069) 5,255,000 5,301,350 $ 275,000 4,809,350 17,000 200,000 5,301,350 Amount Increase/ (Decrease) $ 235,356 919,210 1,349,084 (5,255,000) (2,751,350) $ (225,000) (2,309,350) (17,000) (200,000) (2,751,350) Note: Negative Sources of Funds reflect reimbursements to Member Cities for the CPEV 20 Mile Initial Segment Capital Project. Source of funding is PTF revenue to fund Regional Assets. Adopted FY 2012-2013 Operating and Capital Budget METRO 16 May 2012 FY 2012-13 Adopted Northwest Extension Phase I Budget 2012/2013 Adopted Budget Sources of Funds PTF Revenue Bonds Phoenix - T2000 Phoenix NWX Advance $ 50,000 28,630,380 28,680,380 $ Expenditures Salaries and Fringe Benefits RPTA Overhead Consulting COP Liaison Consultants - PM/CM Consultants - Planning Support Consultants - Design & Construction Support Contractor - CM At Risk City management & administration Consultants - Engineering Consultants - Art Design Consultants - Other Real estate acquisition Printing Postage Other direct expenditures Local meetings & mileage LRT project capital outlay Agency Overhead Allocation $ 305,326 19,908 50,000 1,071,936 25,000 81,000 10,125,000 1,292,800 921,000 270,000 358,500 14,000,000 20,000 500 2,000 3,500 25,000 108,911 28,680,380 $ Adopted FY 2012-2013 Operating and Capital Budget METRO 17 2011/2012 Amended Budget $ $ $ $ 11,428,000 (2,854,721) 8,573,279 25,000 8,548,279 8,573,279 Amount Increase/ (Decrease) $ $ $ $ (11,428,000) 2,904,721 28,630,380 20,107,101 305,326 19,908 25,000 1,071,936 25,000 81,000 10,125,000 1,292,800 921,000 270,000 358,500 5,451,721 20,000 500 2,000 3,500 25,000 108,911 20,107,101 May 2012 FY 2012-13 Adopted Central Mesa HCT Capital Project 2012/2013 Adopted Budget Sources of Funds PTF Revenue Bonds FTA Section 5309 CMAQ $ 15,987,697 22,600,000 11,000,000 49,587,697 $ Expenditures Salaries and Fringe Benefits RPTA Overhead Consultants - PM/CM Consultants - Planning Support Consultants - Design & Construction Support Contractor - Design Build City management & administration Consultants - General/Final Engineering Consultants - Construction Admin. Consultants - Art Design Consultants - Other Pothole Program Real estate acquisition Advertising Printing Postage Public meetings & information Other direct expenditures LRT project office expense Local meetings & mileage Business Travel LRT project capital outlay Agency Overhead Allocation $ 876,706 57,151 1,959,237 25,000 370,477 36,474,000 954,940 685,000 428,500 7,000,000 6,000 17,500 5,500 7,000 23,000 147,100 11,500 7,800 208,000 303,286 49,587,697 $ Adopted FY 2012-2013 Operating and Capital Budget METRO 18 2011/2012 Amended Budget $ $ $ $ 2,225,384 3,300,000 11,000,000 16,525,384 944,719 68,458 400,000 7,485,000 465,000 250,000 464,750 250,000 5,700,000 6,000 17,500 5,500 7,500 17,500 139,100 1,000 13,000 25,155 265,203 16,525,384 Amount Increase/ (Decrease) $ $ $ $ 13,762,313 19,300,000 33,062,313 (68,012) (11,307) 1,959,237 25,000 370,477 36,474,000 554,940 (7,485,000) (465,000) 435,000 (36,250) (250,000) 1,300,000 (500) 5,500 8,000 10,500 (5,200) 182,845 38,082 33,062,313 May 2012 FY 2012-13 Adopted Tempe Streetcar HCT Capital Project 2012/2013 Adopted Budget 2011/2012 Amended Budget Amount Increase/ (Decrease) Sources of Funds PTF Revenue Bonds CMAQ $ $ Expenditures Salaries and Fringe Benefits RPTA Overhead Consultants - PM/CM Consultants - Design & Construction Support Contractor - Design Build LRV Modifications City management & administration Consultants - Art Design Consultants - Engineering Consultants - Other (7200) Consultants - Planning/Environmental/PE Pothole Program Real estate acquisition LRT project capital outlay Business Travel Other direct expenditures Agency Overhead Allocation $ $ Adopted FY 2012-2013 Operating and Capital Budget METRO 19 2,664,812 10,659,247 13,324,058 591,324 38,550 933,831 603,477 3,125,000 6,000,000 550,000 221,500 550,000 75,000 400,000 5,000 4,800 25,750 199,826 13,324,058 $ $ $ $ 852,457 3,409,828 4,262,284 462,277 33,498 150,000 2,600,250 336,195 400,000 130,000 7,800 16,500 125,764 4,262,284 $ $ $ $ 1,812,355 7,249,419 9,061,774 129,047 5,052 933,831 603,477 3,125,000 6,000,000 550,000 (150,000) (2,600,250) (114,695) 550,000 (325,000) 400,000 (125,000) (3,000) 9,250 74,062 9,061,774 May 2012 FY 2012-13 Mesa Extension - Concurrent Non-Project Activities (CNPA) Budget 2012/2013 Adopted Budget 2011/2012 Amended Budget Amount Increase/ (Decrease) Sources of Funds Mesa Expenditures Contractor - Design Build $ $ 2,526,000 2,526,000 $ $ - $ $ 2,526,000 2,526,000 $ $ - - $ $ 2,526,000 2,526,000 - $ $ 2,526,000 2,526,000 FY 2012-13 Adopted Non-Prior Rights Utilities Relocation Budget 2012/2013 Adopted Budget Sources of Funds PTF Revenue Sales Tax Expenditures Salaries and Fringe Benefits RPTA Overhead Northwest Extension NPR Utilities Mesa Extension NPR Utilities Tempe Streetcar NPR Utilities Agency Overhead Allocation 20 Amount Increase/ (Decrease) $ $ 10,812,800 10,812,800 $ $ 2,637,937 2,637,937 $ $ 8,174,862 8,174,862 $ 43,308 2,824 8,000,000 2,000,000 750,000 16,667 10,812,800 $ 45,638 3,307 575,000 2,000,000 13,992 2,637,937 $ (2,329) (483) 7,425,000 750,000 2,674 8,174,862 $ Adopted FY 2012-2013 Operating and Capital Budget METRO 2011/2012 Amended Budget $ $ May 2012 FY 2012-13 Adopted Systemwide Improvements 2012/2013 Adopted Budget Sources of Funds City of Phoenix T 2000 Tempe Mesa PTF Revenue Sales Tax TIGGER Federal Grant TIGGER Private Match $ $ Expenditures Salaries and Fringe Benefits RPTA Overhead Consultants - Planning Support Consultants - Design & Construction Support DBOM - Design-Build-Operate-Maintain Consultants - Other Advertising Printing Postage Other direct expenditures Systemwide Capital Agency Overhead Allocation $ $ (9,322,492) 283,103 49,389 11,881,681 2,700,000 3,300,000 8,891,681 99,353 6,460 25,000 125,000 5,624,736 97,500 10,000 5,000 2,000 5,000 2,876,901 14,731 8,891,681 2011/2012 Amended Budget $ $ $ $ (10,000,000) 10,675,296 675,296 675,296 675,296 Amount Increase/ (Decrease) $ $ $ $ 677,508 283,103 49,389 1,206,385 2,700,000 3,300,000 8,216,385 99,353 6,460 25,000 125,000 5,624,736 97,500 10,000 5,000 2,000 5,000 2,201,605 14,731 8,216,385 FY 2012-13 Adopted Scheduled Capital Debt Service 2012/2013 Adopted Budget Sources of Funds PTF Revenue Sales Tax Expenditures Debt Service - Interest Debt Service -Principal 21 Amount Increase/ (Decrease) $ $ 5,364,447 5,364,447 $ $ 2,750,000 2,750,000 $ $ 2,614,447 2,614,447 $ 2,593,481 2,770,966 5,364,447 $ 2,750,000 2,750,000 $ (156,519) 2,770,966 2,614,447 $ Adopted FY 2012-2013 Operating and Capital Budget METRO 2011/2012 Amended Budget $ $ May 2012 Funds Flow Fiscal Year 2013 $ Thousands Central Phoenix/East Valley LRT Project Funding Sources Fare Revenue: Phoenix Tempe Mesa Advertising Revenue: Phoenix Tempe Mesa Phoenix Tempe Mesa Glendale Chandler Peoria Costs Funded Currently Federal/Regional Reimbursements $ $ - 2,534 14 2 Federal 5309 Federal 5339 Federal CMAQ Federal 5307 PM Federal FG PM Federal TIGGER Regional PTF Sales Tax Regional PTF Revenue Bonds RPTA MAG Arranged Funding Other Funding TOTAL FUNDING - Other Costs Funded in Current FY Net CPEV Sources $ - - 2,534 14 2 - - - - - - Northwest Extension Central Mesa $ - $ - Tempe Streetcar $ - Other Capital $ 28,680 Operations & Proj. Dev. - 6,924 3,292 1,039 Total Funding $ 335 140 24 16,159 6,897 1,748 30 30 55 (9,322) 283 2,575 335 140 24 38,051 7,194 4,325 30 30 55 22,600 11,000 2,700 28,059 15,988 22,600 1,044 21,659 783 2,700 34,628 18,653 500 882 3,300 1,044 783 - 10,659 6,569 500 882 2,665 3,300 $ Adopted FY 2012-2013 Operating and Capital Budget METRO 2,550 $ - $ 2,550 $ 49,588 22 $ 28,680 $ 13,324 $ 27,595 $ 46,453 6,924 3,292 1,039 $ 168,190 May 2012 Adopted FY 2012-2013 Operating and Capital Budget METRO 23 May 2012 Five – Year Operating Forecast and Capital Program FY 2013 – FY 2017 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. FY 2013-2017 25 Five – Year Operating Forecast and Capital Program METRO May 2012 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 commenced 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. During FY 2011, METRO staff analyzed the delivery of maintenance and transportation services to ensure they are being delivered in a way that focuses on the customer and is efficient from a cost perspective. As a result of that analysis, METRO has transitioned performance of vehicle maintenance from contracted to in-house staff. METRO will continue to manage contracted services for transportation operations and facilities maintenance, while maintaining system maintenance in-house. The transition of vehicle maintenance began in January 2012. Planning and Development: The proposed high capacity/light rail transit system will include over 57 miles of service in four cities within the next 20 years. Before any specific transit corridor is initiated, METRO 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 network. 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. FY 2013-2017 26 Five – Year Operating Forecast and Capital Program METRO May 2012 Finally, METRO assists with light rail station area planning by actively engaging to support member cities’ efforts to facilitate Transit Oriented Development (TOD). 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. Goals (FY 2013 through FY 2017) Planning & Development Division Goals: • Complete close-out for the initial 20-mile LRT project and provide capital support to system operations. • Advance HCT/LRT corridor projects per the schedules and budgets identified in the Transit Life Cycle Program (TLCP). • Emphasize quality and safety during design and construction of all capital projects. • Actively seek ways to accelerate projects in the TLCP. • Conduct planning studies for member agencies that support future expansion of the high capacity transit system in coordination with MAG. • Support city efforts to encourage Transit Oriented Development (TOD). • Regularly analyze LRT rider characteristics to identify opportunities to improve operations and to support future planning efforts. • Develop and implement an agency sustainability program. • Continue the implementation, administration and utilization of an effective agencywide geographic information system. FY 2013-2017 27 Five – Year Operating Forecast and Capital Program METRO May 2012 Operations & Maintenance Division Goals: • Deliver rail operational service within budget. • Achieve or exceed LRV mean-distance-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 and implement capital improvement program to ensure system remains in state of good repair. • Continue to search for creative operating practices that improve the customer’s experience. Safety & Security Division Goals: • Create opportunities for the METRO system to expand and enhance safety for METRO passengers, employees, autos and bicyclists. • FTA compliant Drug & Alcohol Testing Program for all Operations and Maintenance Employees. • Continually strive to exceed the federal, state, internal and external audit provisions and accepted industry standards for safety and security. • Develop strategies to manage risks by performing analysis and initiating improvements to enhance safety and security throughout METRO. • Continue to explore new methods of enhancing safe interaction with the driving public and pedestrians. 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. FY 2013-2017 28 Five – Year Operating Forecast and Capital Program METRO May 2012 • 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. • Manage and fine-tune the Owner Controlled Insurance Program as METRO’s operational experience develops. • 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: • Work with RPTA staff to integrate finance and administration activities with the outcome of improving financial controls, maximizing grant revenues and information systems to support the regional transit system. • Manage fare revenue and ridership accounting controls. • Manage financial aspects of rail operations costs FY 2013-2017 29 Five – Year Operating Forecast and Capital Program METRO May 2012 • 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 project controls systems to deliver the Central Mesa, Tempe Streetcar, Northwest Extension and Phoenix West projects on-time and within budget. • Manage IT systems to maximize user computer capabilities. • Work with regional transit partner’s staff to facilitate administrative efficiencies and reduce costs. Five-Year Plan Summary Uses of Funds: The cumulative uses of funds, FY 2013 through FY 2017, are summarized as follows: Uses of Funds Five Year Total LRT Operations & Maintenance Project Development Planning Agency Operating Budget YOE ($,000) $ Subtotal - Operations and Project Development CP/EV LRT Project Northwest Extension Phase 1 Central Mesa Tempe Streetcar Phx West 14 LRV's CNPA and ARRA Projects Non-Prior Rights Utilities Systemwide Improvements PTF Debt Service 240,036 2,550 194,737 160,973 128,148 77,543 15,897 2,526 32,646 28,146 98,673 Subtotal - Capital Total Uses FY 2013-2017 30 Five – Year Operating Forecast and Capital Program METRO 198,465 36,214 5,357 741,840 $ 981,876 May 2012 Sources of Funds: The cumulative sources of funds, FY 2013 through FY 2017, are summarized as follows: Sources of Funds Five Year Total LRT Fares Advertising ($,000) $ 63,638 2,278 Member City Contributions: Phoenix Tempe Mesa Glendale Chandler Peoria All Others 57,652 34,385 14,886 161 161 55 7,322 Regional Funding: MAG / RPTA PTF Sales Tax Revenue PTF (Reserve) / Borrowing 5,382 258,428 265,981 Federal Funding: FTA Section 5309 FTA Section 5339 CMAQ / STP Federal 5307 PM Federal FGPM Other Federal Total Sources 158,753 2,200 102,033 5,862 2,700 981,876 FY 2013-2017 31 Five – Year Operating Forecast and Capital Program METRO $ May 2012 Table 1 – Five-Year Capital Program and Operating Forecast Summary ($000) 2013 2014 2015 2016 2017 Cumulative 2013 - 2017 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 Streetcar Phx West 14 LRV's CNPA and ARRA Projects Non-Prior Rights Utilities Systemwide Improvements PTF Debt Service 35,293 10,150 1,010 $ Subtotal - Capital Total Uses 46,453 2,550 28,680 49,588 13,324 2,526 10,813 8,892 5,364 36,547 7,748 1,040 $ 45,335 65,128 50,524 58,900 15,620 6,733 13,655 37,200 6,825 1,070 $ 45,095 75,890 50,219 42,877 5,943 15,897 6,213 14,626 40,700 6,938 1,102 $ 48,739 25,039 10,642 13,047 24,500 2,830 32,504 48,726 4,554 1,135 $ 54,415 47,100 9,691 32,523 198,465 36,214 5,357 $ 240,036 2,550 194,737 160,973 128,148 77,543 15,897 2,526 32,646 28,146 98,673 121,738 210,561 211,665 108,562 89,314 741,840 $ 168,190 $ 255,894 $ 256,760 $ 157,301 $ 143,729 $ 981,876 $ $ $ $ $ (39,930) 7,039 6,316 34 34 1,000 (25,506) $ 57,652 34,385 14,886 161 161 55 5,382 7,322 120,003 SOURCES OF FUNDS Phoenix Tempe Mesa Glendale Chandler Peoria MAG / RPTA All Others Subtotal PTF Sales Tax Revenue PTF (Reserve) / Borrowing LRT Fares Advertising FTA Section 5309 FTA Section 5339 CMAQ / STP Federal 5307 PM Federal FGPM Other Federal Subtotal Total Sources 38,041 7,179 4,349 30 30 55 1,382 3,300 54,367 38,065 7,114 851 31 31 1,000 4,022 51,114 4,469 7,159 846 32 32 1,000 13,538 17,007 5,894 2,524 33 33 1,000 26,491 30,551 22,731 52,527 80,423 55,493 109,583 58,445 441 61,411 52,804 258,428 265,981 11,256 500 11,594 425 11,941 438 14,423 451 14,423 464 63,638 2,278 22,600 1,044 21,659 783 2,700 48,786 $ 168,190 42,800 1,156 14,861 995 59,812 $ 255,894 42,400 22,200 1,167 65,767 $ 256,760 33,200 22,413 1,437 57,050 $ 157,301 17,753 20,900 1,480 40,132 $ 143,729 158,753 2,200 102,033 5,862 2,700 271,547 981,876 $ Note: Cost and revenues reported on accrual basis. PTF Sales Tax Revenues are forecasted in accordance with ADOT projections published in October 2011. The Rail PTF (Reserve) / Borrowing represents forecasted expenditures from bond proceeds. Regional PTF Revenues are shown as forecasted in the September 2007 ADOT revenue forecast. The Rail PTF (Reserve) / Borrowing represents forecasted annual reserve at FYE 2007 and future funding requirements in excess of the expected sales tax Sources of funds from Phoenix are net contributions after reimbursements for Light Rail Vehicles under the capital lease program. FY 2017 negative sources of funds reflect reimbursement to the City of Phoenix for funding advances made to the Northwest Extension. FY 2013-2017 32 Five – Year Operating Forecast and Capital Program METRO May 2012 Five-Year Operating Forecast The Operations & Maintenance (O&M) costs are projected based on current cost history with a general inflation escalation factor of 3.0%. Anticipated structural changes to staffing, contract and materials expenses are forecasted to meet customer demand and maintain the system in a state of good repair. 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 2013 through FY 2017 planning horizon are summarized as follows (See Table 2, Five-Year Operating Forecast): Uses of Funds - Operating Budget Operations & Maintenance Project Development Planning Support Agency Operating Budget Total Uses Sources of Funds - Operating Budget Fare Revenues Advertising Member Support Phoenix Tempe Mesa Glendale Chandler Peoria Subtotal Capital Planning Funds - PTF Federal 5307 PM Federal FGPM FTA 5339 RPTA/MAG/ CMAQ / STP Total Sources FY 2013-2017 33 Five – Year Operating Forecast and Capital Program METRO $ $ $ ($,000) 198,465 36,214 5,357 240,036 ($,000) 63,638 2,278 86,577 34,089 12,309 161 161 55 133,350 $ 27,327 5,862 2,200 5,382 240,036 May 2012 Table 2 – Five-Year Operating Forecast - - - - - - - - - - - - - - - - - - - -Year of Expenditure ($,000) - - - - - - - - - - 2013 USES OF FUNDS Operations and Maintenance Project Development Planning Support Agency Operating Budget Total Uses SOURCES OF FUNDS LRT Fares: Phoenix Tempe Mesa Subtotal Fares Other Revenues Phoenix Tempe Mesa Glendale Chandler Peoria Advertising Subtotal Local Revenues Capital Planning Funds - PTF MAG RPTA Federal 5307 PM Federal FGPM FTA 5339 Total Sources 2014 2015 2016 2017 TOTAL 35,293 10,150 1,010 46,453 36,547 7,748 1,040 45,335 37,200 6,825 1,070 45,095 40,700 6,938 1,102 48,739 48,726 4,554 1,135 54,415 198,465 36,214 5,357 240,036 6,924 3,292 1,039 11,256 7,132 3,391 1,071 11,594 7,346 3,493 1,103 11,941 8,886 4,196 1,341 14,423 8,886 4,196 1,341 14,423 39,175 18,568 5,894 63,638 16,150 6,882 1,771 30 30 55 500 25,419 16,695 7,115 851 31 31 425 25,148 16,654 7,159 846 32 32 438 25,161 17,007 5,894 2,524 33 33 451 25,942 20,070 7,039 6,316 34 34 464 33,958 86,577 34,089 12,309 161 161 55 2,278 135,628 6,569 5,442 5,825 5,938 3,554 27,327 500 882 783 1,044 46,453 500 500 995 1,156 45,335 500 500 1,167 45,095 500 500 1,437 48,739 500 500 1,480 54,415 2,500 2,882 5,862 2,200 240,036 FY 2013-2017 34 Five – Year Operating Forecast and Capital Program METRO May 2012 Passenger Operations & Maintenance 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 is 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. As a cost containment measure, In January 2012, LRV Maintenance responsibility was transitioned from contract to In-house METRO. 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 are 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 July 2009, the current Regional Fare Policy is as follows: Reduced - ADA Certified, Youth (6-18) and Seniors (age 65 and over) FY 2013-2017 35 Five – Year Operating Forecast and Capital Program METRO May 2012 Table 3 – Rail Operations and Maintenance Cost Forecast FY 2013 through 2017 - - - - - - - - - - - - -Year of Expenditure Dollars - - - - - - - - - - Annual Cost Projection Extended Cost Transportation Labor and Materials $ 9,610,616 Labor - Fare Inspection & Security 2,615,573 Propulsion Power 2,346,719 Emergency Contingency (Bus Bridges, etc.) 196,000 Transportation Total Vehicle Maintenance METRO LRVM Labor $ 3,993,111 LRVM Parts and Materials 1,203,867 LRVM Capital PM Overhauls 243,986 Maintenance Other / Insurance - Accident Reco (270,749) Vehicle Maintenance Total Systems and Facilities Maintenance Track/Station/Facility Maintenance $ 2,467,185 Traction Power System Maintenance Labor 1,211,623 Signals/Communications/TVMs Labor 1,373,264 Material Control/Supplies/Other Direct Costs 2,379,744 Utilities 1,409,378 Fare Collection Material & Armored Car 290,000 Fare Revenue Handling Fee 401,388 Systems and Facilities Maintenance Total Administration Property and General Liability Insurance $ 1,635,456 VMR Management 1,805,482 General & Administrative Costs 1,926,319 Contingency Reserve 454,000 Administration Total TOTAL OPERATING COSTS FY 2013 FY 2014 FY 2015 FY 2016 FY2017 $ 14,768,907 $ 15,211,975 $ 15,668,334 $ 17,292,556 $ 21,352,362 4,112,905 4,236,292 1,239,983 1,277,183 446,314 16,383 (278,871) (287,237) $ 5,170,215 $ 5,520,330 $ 5,242,621 $ 4,558,083 1,450,493 140,831 (295,854) 5,853,553 $ 5,094,712 1,966,538 525,071 (304,730) 7,281,591 $ 9,532,582 $ 9,818,559 $ 10,113,116 $ 10,914,445 $ 12,506,055 $ 5,821,257 $ 5,995,895 $ 6,175,772 $ 6,639,031 $ 7,586,201 $ 35,292,962 $ 36,546,760 $ 37,199,843 $ 40,699,585 $ 48,726,208 Commencing in FY 13 and continuing in FY 14, significant cost increases to perform preventative maintenance are scheduled. For vehicle maintenance, commencing in January 2012, in-house staff replaced contractor staff as a cost containment measure. In fiscal year 2016 the Northwest Extension and the Central Mesa alignments are forecasted to commence revenue operations (March 2016). The total $40.7 million operating cost forecast in FY16 is composed of the following components:  Base 20 mile system $ 38.5 M  Northwest Extension (4 months) $ 1.1 M  Central Mesa Extension ( 4 months) $ 1.1 M In fiscal year 2017 the Tempe Streetcar alignment is forecasted to commence revenue operations (December 2016). The total $48.7 million operating cost forecast in FY 17 is composed of the following components:  Base 20 mile system $ 39.9 M  Northwest Extension $ 3.5 M  Central Mesa Extension $ 3.5 M  Tempe Streetcar ( 7 months) $ 1.8 M FY 2013-2017 36 Five – Year Operating Forecast and Capital Program METRO May 2012 Table 4 – Rail Operations Fares and Member City Funding FY 2013 to FY 2017 Fiscal Year FY 2013 Annual Ridership / Fares RIDERSHIP 2013 Baseline Rides Weekday Saturday Sunday Total Baseline Rides 10,350,356 1,947,263 1,102,381 13,400,000 OPERATING REVENUES Fare Revenues Phoenix Tempe Mesa Total Fare Revenues FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 13,400,000 13,802,000 14,216,060 14,322,912 16,065,766 Fare Assumption $ $ $ 0.84 0.84 0.84 $ $ $ $ 8,694,299 1,635,701 926,000 11,256,000 $ $ $ 61.5157% 29.2499% 9.2344% 8,694,299 $ 1,635,701 $ 926,000 $ 11,256,000 8,955,128 $ 1,684,772 $ 953,780 $ 11,593,680 9,223,782 $ 1,735,315 $ 982,393 $ 11,941,490 9,500,495 $ 1,787,374 $ 1,011,865 $ 12,299,735 9,785,510 1,840,996 1,042,221 12,668,727 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 $6,924,205 $3,292,366 $1,039,430 $11,256,000 $7,131,931 $3,391,137 $1,070,612 $11,593,680 $7,345,889 $3,492,871 $1,102,731 $11,941,490 $8,886,474 $4,195,909 $1,340,789 $14,423,172 $9,910,425 $4,661,067 $1,606,734 $16,178,226 32% 32% 32% 35% 33% $500,000 $335,400 $140,150 $24,450 $425,000 $285,090 $119,128 $20,783 $437,750 $293,643 $122,701 $21,406 $450,883 $294,406 $113,178 $43,298 $464,409 $281,823 $107,982 $74,604 $782,892 $516,215 $226,772 $39,904 $994,738 $655,900 $288,136 $50,702 $1,167,047 $769,516 $338,047 $59,484 $1,436,896 $938,229 $360,682 $137,985 $1,480,003 $898,127 $344,124 $237,752 $23,271,120 $10,222,959 $1,798,882 $35,292,962 $24,097,837 $10,586,134 $1,862,788 $36,546,760 $24,528,460 $10,775,306 $1,896,076 $37,199,843 $26,575,007 $10,216,203 $3,908,375 $40,699,585 $29,569,083 $11,329,604 $7,827,521 $48,726,208 Fare Recovery Ratio Advertising Revenue Phoenix Tempe Mesa 67.0800% 28.0300% 4.8900% Federal 5307 PM Phoenix Tempe Mesa Federal Fixed Guideway Preventative Maintenance Phoenix Tempe Mesa Gross Operating Costs Phoenix Tempe Mesa Total Operating Costs Member City Funding Phoenix Tempe Mesa Total Member City Funding 67.0800% 28.0300% 4.8900% 65.9370% 28.9660% 5.0970% TOTAL OPERATING REVENUE $ $ $ 15,495,300 $ 16,024,916 $ 16,119,413 $ 16,455,898 $ 18,478,709 6,563,671 $ 6,787,734 $ 6,821,687 $ 5,546,433 $ 6,216,430 695,099 $ 720,692 $ 712,455 $ 2,386,304 $ 5,908,431 $22,754,070 $23,533,342 $23,653,555 $24,388,635 $30,603,571 $35,292,962 $36,546,760 $37,199,843 $40,699,585 $48,726,208 Fare revenue is forecasted to grow from FY 13 through FY 17 with a combination of increased ridership and increased fare structure. Baseline ridership is forecasted to grow by 3% per year. Additional passenger rides will be developed in FY 16 and FY 17 with the addition of the Central Mesa, Northwest Extension and Tempe Streetcar lines. It is anticipated that in the near future, a regional fare increase will be implemented which is estimated to increase average fare per ride to $1.01. For this forecast, it is presumed that the fare increase will occur in FY 16 raising average fare from $.84 to $1.01. Project Development Planning Project development planning consists of the following subcategories of System Planning and Corridor Planning activities: • Light rail/high capacity transit system planning. FY 2013-2017 37 Five – Year Operating Forecast and Capital Program METRO May 2012 • Alternatives analysis, environmental analysis, and conceptual engineering for future light rail/high capacity transit corridors. • Developing and updating LRT design criteria, standards and specification • 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 2013 to FY 2017 - - - - - - - - - - - - - - - - - - - - - (YOE $,000) - - - - - - - - - - - - - - - - - - - - - 2013 2014 2015 2016 2017 Total USES OF FUNDS CPDA Phoenix West AA / DEIS / CE / Early Action Glendale AA Northeast Phoenix AA / DEIS / CE South Central Central Mesa Phase II (Gilbert Road) Systems Planning & Project Development Design Criteria Total Uses 1,560 2,500 800 750 950 3,290 300 $ 10,150 $ 1,626 1,783 1,000 750 2,540 50 7,748 $ 150 1,156 5,442 500 500 7,748 $ 1,674 2,500 2,601 50 6,825 $ 5,825 500 500 6,825 $ 1,724 2,500 2,664 50 6,938 $ 5,938 500 500 6,938 $ 1,775 2,729 50 4,554 $ 3,554 500 500 4,554 $ $ $ 8,359 4,283 1,800 5,000 1,500 950 13,823 500 36,214 $ 55 300 950 2,200 27,327 2,882 2,500 36,214 SOURCES OF FUNDS Peoria Phoenix Mesa Glendale FTA 5339 PTF RPTA MAG Total Sources 55 150 950 1,044 6,569 882 500 $ 10,150 FY 2013-2017 38 Five – Year Operating Forecast and Capital Program METRO May 2012 FIVE-YEAR CAPITAL PROGRAM – FY 2013 THROUGH FY 2017 Capital projects included in the five year program include: • • • • • • Central Phoenix / East Valley (CP/EV) – the initial 20-mile METRO light rail 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 and 19th Avenue. Central Mesa – 3.1 mile alignment extending eastbound to downtown Mesa. Tempe Streetcar – 2.6 mile alignment extending southward along Mill Avenue in downtown Tempe from Rio Salado to Southern. Phoenix West – 11 mile alignment from downtown Phoenix westward to the vicinity of 79th Avenue. Systemwide Improvements – Includes system component overhauls to maintain a state of good repair and small capital improvement elements which benefit the entire LRT system. 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. FY 2013-2017 39 Five – Year Operating Forecast and Capital Program METRO May 2012 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 $742 million through the five-year planning horizon. These uses of funds are summarized as follows: FY 2013 THROUGH FY 2017 Uses of Funds - Capital Projects CP/EV LRT Project NW Ext Phase 1 Central Mesa Tempe Streetcar Phx West YOE ($,000) $ 14 LRV's CNPA NPR Utilities Systemwide Improvements 15,897 2,526 32,646 28,146 PTF Bond Debt Service: Principal Payments Interest Payments Total Capital Costs FY 2013-2017 40 Five – Year Operating Forecast and Capital Program METRO 2,550 194,737 160,973 128,148 77,543 58,456 40,217 $ 741,840 May 2012 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 6, Five-Year Capital Program / All Projects): FY 2013 THROUGH FY 2017 Sources of Funds - Capital Projects YOE ($,000) Phoenix Tempe Mesa All Others Public Transportation Funds Federal Revenues: FTA Sec 5309 CMAQ Other Federal $ Total Capital Revenues $ (28,925) 297 2,578 7,322 497,082 158,753 102,032 2,700 741,840 Note: Negative sources of funds reflect reimbursements to City of Phoenix for 14 Light Rail Vehicles (source of funding is Public Transportation Fund). FY 2013-2017 41 Five – Year Operating Forecast and Capital Program METRO May 2012 Table 6 – Five-Year Capital Program / All Projects ($000) Pre 2013 USES OF FUNDS CP/EV LRT Project Northwest Extension Phase 1 Central Mesa Tempe Streetcar Phx West Subtotal HCT Corridors 2013 2014 2015 2016 2017 FY 2013-17 1,403,640 94,939 21,800 1,200 1,521,579 2,550 28,680 49,588 13,324 94,142 65,128 50,524 58,900 174,552 75,890 50,219 42,877 5,943 174,929 25,039 10,642 13,047 24,500 73,228 47,100 47,100 2,550 194,737 160,973 128,148 77,543 563,951 42,186 122,800 4,936 1,054 2,526 10,813 8,892 15,620 6,733 15,897 6,213 - 2,830 9,691 15,897 2,526 32,646 28,146 1,186 5,503 1,699,245 2,771 2,593 121,738 7,505 6,151 210,561 7,747 6,879 211,665 19,872 12,632 108,562 20,561 11,962 89,314 58,456 40,217 741,840 SOURCES OF FUNDS Phoenix Tempe Mesa All Others Subtotal 639,708 133,125 26,876 1,173 800,882 21,891 297 2,578 3,300 28,066 21,370 4,022 25,392 (12,186) (12,186) - (60,000) (60,000) (28,925) 297 2,578 7,322 (18,728) Public Transportation Funds Sales Tax Proceeds Bond Proceeds 233,434 262,400 (28,966) 46,712 23,982 22,731 127,508 52,527 74,981 159,251 55,493 103,758 52,949 58,445 (5,497) 110,662 61,411 49,250 497,082 251,859 245,223 22,600 21,659 2,700 46,959 121,738 42,800 14,861 57,661 210,561 42,400 22,200 64,600 211,665 17,753 20,900 38,653 89,314 158,753 102,032 2,700 263,485 741,840 14 LRV's CNPA and ARRA Projects Non-Prior Rights Utilities Systemwide Improvements PTF Bond Debt Service: Principal Payments Interest Payments Total Capital Costs Federal Revenues: FTA CMAQ Other Federal Subtotal Federal Total Revenues 587,200 77,729 664,929 1,699,245 33,200 22,413 55,613 108,562 Transportation Excise Tax Revenue Bond issues by the Regional Public Transit Authority (RPTA) in support of the rail capital program are anticipated as follows: • • FY 2013 $70.0 million FY 2015 $145.0 million The bonds are funded by the Public Transportation Fund sales tax proceeds over the 13 years remaining of the Prop 400 initiative. FY 2013-2017 42 Five – Year Operating Forecast and Capital Program METRO May 2012 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 2013) is $1.404 billion in year of expenditure dollars. FY 2013-2017 43 Five – Year Operating Forecast and Capital Program METRO May 2012 CP/EV LRT Sources and Uses of Funds: The total capital cost of the CP/EV LRT project over the FY 1999 to FY 2017 period is $1.406 billion in year of expenditure dollars. Remaining capital costs are primarily settlements of real estate acquisitions. Sources and funding are summarized as follows: - - - - - ($,000) - - - 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 Pre-2013 2013 2014 2015 2016 2017 TOTAL $1,403,640 $1,403,640 $ 2,550 $ $ 2,550 . $ - $ $ - $ $ - $ $ - $ 1,406,190 $ 1,406,190 $ 587,200 59,751 646,951 $ $ - $ - $ - $ - $ 587,200 59,751 646,951 $ 418,348 118,412 21,178 198,751 756,689 $ 2,534 14 2 2,550 $ - $ - $ - $ - $ - 420,882 118,426 21,180 198,751 759,239 $1,403,640 $ 2,550 $ - $ - $ - $ - $ 1,406,190 - The total expenditures over the FY 13 – FY 17 planning window are $2.550 million (fiscal year 13 is the final year anticipated for project closeout). FY 2013-2017 44 Five – Year Operating Forecast and Capital Program METRO May 2012 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 high capacity/ light rail transit corridors to be implemented by 2031. Currently the 3.2 mile Phase I extension to serve the Northwest area of Phoenix final design is complete and right of way acquisition is ongoing. Under the plan additional service areas are identified; a 3.1-mile light rail extension east into downtown Mesa which is in final design and right of way acquisition, 2.6-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 commenced in early FY 2011 and construction activities will follow in FY 2012. Planning will be completed on the Tempe Streetcar in FY 2012 with design commencing in Spring of 2012. Planning for the Phoenix West corridor is anticipated to complete in FY 2013. The Glendale corridor will commence planning in FY 2013. Additionally, METRO is actively planning for the South Central and Gilbert Road corridors. 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. FY 2013-2017 45 Five – Year Operating Forecast and Capital Program METRO May 2012 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 3.2-mile phase, along 19th Avenue from Montebello Avenue to Dunlap Avenue, to be funded from a combination of both PTF and local funds. FY 2013-2017 46 Five – Year Operating Forecast and Capital Program METRO May 2012 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 a significant decrease. 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 the end of 2012. The second phase of construction is anticipated to commence in 2013, with a combination of local and regional funding. Northwest Extension Sources and Uses of Funds: The total capital cost of the Northwest Extension project over the FY 2005 to FY 2016 period is budgeted to be approximately $310.8 million, excluding financing costs. - - - - - - - ($,000) - - - Northwest Extension CAPITAL COSTS NPR Utilities Project Costs Total Capital Costs CAPITAL REVENUES Phoenix NWX Advance Phoenix T 2000 Transit Tax PTF Revenue Total Local Total Capital Revenue Pre-2013 2013 2014 2015 $ 4,881 94,939 $99,820 $ 8,021 28,680 $36,701 $ 5,265 65,128 $70,393 $ 2,968 75,890 $78,858 $ $ 87,958 11,862 99,820 $28,630 50 8,021 36,701 $31,370 39,023 70,393 $ $ $99,820 $36,701 $70,393 $78,858 78,858 78,858 2016 25,039 $25,039 25,039 25,039 $25,039 2017 $ $ - TOTAL $ 21,135 289,676 $ 310,811 $(60,000) 60,000 - $ $ $ 310,811 - 88,008 222,803 310,811 Under the current funding plan, the City of Phoenix will provide advances totaling $60.0 million in FY 13 and FY 14. The Public Transportation Fund will reimburse Phoenix in FY 17. In consideration for PTF funding of the Northwest Extension, the City of Phoenix will provide a portion of the local capital funding for the Phoenix West Extension. FY 2013-2017 47 Five – Year Operating Forecast and Capital Program METRO May 2012 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 began in FY 2011. The Central Mesa LRT extension is scheduled to commence passenger operations in 2016. Central Mesa LRT Extension Alignment FY 2013-2017 48 Five – Year Operating Forecast and Capital Program METRO May 2012 Central Mesa Extension Sources and Uses of Funds: The capital cost of the Central Mesa Extension project through FY 2016 is budgeted to be approximately $190.8 million, excluding financing costs. CNPA costs related to the project total $2.5 million. - - - - - - - ($,000) - - - - Central Mesa Extension CAPITAL COSTS NPR Utilities Project Costs Total Capital Costs CAPITAL REVENUES FTA Section 5309 CMAQ Pre-2013 2013 2014 $ 55 21,800 $21,855 $ 2,035 49,588 $51,623 $ 5,211 50,524 $55,735 729 50,219 $ 50,948 10,642 $ 10,642 $ 17,400 17,400 $22,600 11,000 33,600 $27,800 7,300 35,100 $ 22,400 8,200 30,600 $ 2,200 8,900 11,100 $ 4,455 4,455 $18,023 18,023 $20,635 20,635 $ 20,348 20,348 $ $21,855 $51,623 $55,735 $ 50,948 $ 10,642 Total Federal PTF Revenue Total Local Total Capital Revenue 2015 $ 2016 $ (458) (458) 2017 $ TOTAL - 8,030 182,773 $ 190,803 $ - $ 75,000 52,800 127,800 $ - $ 63,003 63,003 $ - $ 190,803 $ $ Concurrent Non-Project Activities Related to Central Mesa: - - - - - - - ($,000) - - - - - CNPA Total CNPA Costs $ - $ 2,526 $ - $ - $ - $ - $ 2,526 $ - $ 2,526 $ - $ - $ - $ - $ 2,526 REVENUES Mesa Tempe Streetcar Project -- The 2.6-mile Tempe Streetcar project is located on Mill Avenue between Southern Avenue and downtown Tempe. A map of this, with a close-up of the downtown alignment, is shown in Figure 1. The Tempe Streetcar will run in a oneway loop between Rio Salado Parkway and University Drive, going north on Mill Avenue and south on Ash Avenue. It will continue to travel north/south on Mill Avenue between University Drive and Southern Avenue. The Tempe Streetcar will operate weekday trains at 10-minute intervals during peak hours and 15 to 20-minute intervals off-peak. Weekends do not require peak service trains and will operate at 15 to 30-minute headways. Service headways will be adjusted over time to accommodate growth and service patterns. FY 2013-2017 49 Five – Year Operating Forecast and Capital Program METRO May 2012 This extension is part of the Regional Transportation Plan and funded by Proposition 400 regional sales tax and federal grants. Design for the Tempe Streetcar project is scheduled to begin in FY 2012, with construction to follow in 2014. Passenger operations are scheduled to commence in 2016. Tempe Streetcar Sources and Uses of Funds: The total capital cost of the Tempe Streetcar project is budgeted to be approximately $137.8 million, excluding financing costs. - - - - - - ($,000) - - - Tempe South Extension Pre-2013 CAPITAL COSTS NPR Utilities Project Costs $ Total Capital Costs CAPITAL REVENUES FTA Section 5309 CMAQ Total Federal PTF Revenue Total Local Total Capital Revenue 2013 2014 2015 2016 2017 1,200 $ 1,200 $ 750 13,324 $ 14,074 $ 5,144 58,900 $ 64,044 $ 2,516 42,877 $ 45,393 $ 13,047 $ 13,047 $ $ $ 10,659 10,659 $ 15,000 7,561 22,561 $ 20,000 9,400 29,400 $ 21,000 4,496 25,496 $ 1,200 1,200 $ 3,415 3,415 $ 41,483 41,483 $ 15,993 15,993 $ 1,200 $ 14,074 $ 64,044 $ 45,393 - TOTAL - 8,410 129,348 $ 137,758 $ - $ 56,000 32,116 88,116 $ (12,449) (12,449) $ - $ 49,642 49,642 $ 13,047 $ - $ 137,758 $ $ 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 federal grants that are included in the TLCP and the Transportation Improvement Program (TIP). Locally Preferred Alternative is anticipated to occur in 2013 which will identify a route, transit mode and some station locations. FY 2013-2017 50 Five – Year Operating Forecast and Capital Program METRO May 2012 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 LRT Extension Phoenix West Extension Sources and Uses of Funds: The total capital cost of the Phoenix West Extension project over the FY 2013 to FY 2017 period is budgeted to be approximately $77.5 million, excluding financing costs. - - - - - - ($,000) - - - Phoenix West Extension Pre-2013 CAPITAL COSTS NPR Utilities Project Costs $ Total Capital Costs $ CAPITAL REVENUES FTA Section 5309 Other Federal CMAQ - $ - $ $ - $ - $ Total Federal PTF Revenue Total Local Total Capital Revenue 2013 2014 - $ - $ $ - $ - $ 2015 2017 47,100 $ 47,100 $ $ 20,000 34,517 54,517 5,943 $ 5,943 24,500 $ 24,500 - $ $ 10,000 9,017 19,017 $ 10,000 $ - $ 1,343 1,343 $ 5,483 5,483 $ 16,200 16,200 $ 23,026 23,026 $ - $ 5,943 $ 24,500 $ 47,100 $ 77,543 FY 2013-2017 51 Five – Year Operating Forecast and Capital Program METRO 4,600 4,600 $ TOTAL - $ $ 2016 $ 20,900 30,900 77,543 77,543 May 2012 Systemwide Improvements -- Systemwide Improvements are incorporated in the Regional Transportation Plan in order to provide funding for new system components as well as for the capital overhaul programs necessary to maintain the system in a state of good repair. In FY 2013 and 2014 METRO has programmed the construction of Solar Panels at the OMC which is funded under the federal TIGGER program. The OMC Solar project is in the preliminary engineering development phase and the scope of the project will be adjusted to maximize the economic benefits of reducing future electric power consumption and operating costs. The LRV door modification project will reduce future glass breakage and reduce future operating costs. During FY 2013 METRO will overhaul LRV break systems and Traction Power Substation batteries will be replaced. NonRevenue fleet vehicles used for Maintenance crews will be replaced as necessary. Systemwide Improvements Sources and Uses of Funds: The total capital cost of the Systemwide Improvements plan through FY 2017 is budgeted to be approximately $29.2 million, excluding financing costs. - - - - - - ($,000) - - - Systemwide Improvements CAPITAL COSTS LRV Door Modifications OMC Solar All Other LRV Capital PM Total Capital Costs CAPITAL REVENUES Federal FGPM TIGGER CMAQ Pre-2013 $ $ $ Total Federal 578 578 $ $ $ - Other Phoenix Tempe Mesa PTF Revenue Total Local Total Capital Revenue 1,054 1,054 2013 1,054 2,700 2,700 $ $ $ 8,892 $ 2015 4,022 1,858 853 6,733 $ - $ $ 3,300 678 283 49 1,881.90 6,192 476 476 $ 1,010 6,000 1,029 853 8,892 2014 $ 2016 - - $ $ $ 2017 2,830 2,830 - $ $ $ TOTAL 9,691 9,691 $ 7,753 7,753 $ 4,022 - - - 2,711 6,733 - 2,830 2,830 1,938 1,938 6,733 $ - $ 2,830 $ 9,691 $ 1,010 10,022 3,942 14,227 29,200 7,753 2,700 578 11,031 7,322 678 283 49 9,838 18,170 $ 29,200 Valley Metro Rail 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 FY 2013-2017 52 Five – Year Operating Forecast and Capital Program METRO May 2012 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. METRO STAFFING FORECAST - Full Time Equivalents by Project Project Operations: Revenue Operations Agency Operations Agency Overhead Capital Projects: Northwest Extension Central Mesa Tempe Streetcar Phoenix West Non Prior Rights Utility Relocation Systemwide Improvements - OMC Solar Future Project Development: Capital Project Development Administration Systems Studies Phoenix West Glendale Gilbert Rd South Central NE Phoenix Total Full Time Equivalent Staff FY 2013-2017 53 Five – Year Operating Forecast and Capital Program METRO FY13 FY14 FY15 FY16 FY17 113.36 2.10 2.50 113.36 2.05 2.50 113.22 2.05 2.50 113.31 2.05 2.50 113.34 2.05 2.50 2.90 8.83 5.62 0.49 0.79 3.15 8.41 5.57 1.09 0.51 0.69 4.30 6.96 6.34 1.79 0.44 - 3.79 5.59 5.02 4.82 0.44 - 0.95 1.85 3.75 9.73 0.05 - 6.35 0.70 6.56 1.00 1.00 0.80 - 6.35 0.70 5.01 1.67 1.95 - 6.35 0.75 3.92 4.38 6.35 0.70 3.98 4.45 6.35 1.00 11.43 - 153.00 153.00 153.00 153.00 153.00 May 2012 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. 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. 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. FY 2013-2017 54 Five – Year Operating Forecast and Capital Program METRO May 2012 Budget Timelines: The 2012/2013 process is outlined below, with preliminary planning beginning in February and with budget adoption scheduled for May 2012. Major phases of this process are outlined below: • • • Oct 31, 2011 -- Preliminary Operating Budget to City Staff February – Member City inputs for Operations Revenue March 22nd -- Draft Budget to Rail Staff Working Group, and Financial Working Group for Review. April 18th – Comments due to METRO Budget Group April 25th – Budget Submitted to RMC May Board Meeting – Budget Adopted by Board • • • Members' Staff METRO Budget Group METRO Directors / Advisory Groups METRO Board st Feb 1 thru th Feb 15 Prepare Templates th Feb 15 thru th Mar 15 Revenue Forecast th Mar 15 thru st Mar 31 nd Mar 22 thru th Apr 18 th Apr 19 thru th Apr 25 nd May 2 thru th May 15 Review and Comment 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 Compile Revisions and Prepare Final Budget Review and Approve Budget for Submission to the Board Respond to Questions and Issues Raised May Board Meeting FY 2013-2017 55 Five – Year Operating Forecast and Capital Program METRO Review Budget Formally Adopted May 2012 Appendix B – 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. FY 2013-2017 56 Five – Year Operating Forecast and Capital Program METRO May 2012 Appendix B – 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 FY 2013-2017 57 Five – Year Operating Forecast and Capital Program METRO May 2012