Valley Metro Rail, Inc. Adopted Operating and Capital Budget fy 2014 Adopted Five Year Operating Forecast and Capital Program fy 2014 - 2018 va l l e y m e t r o. o r g Valley Metro Rail, Inc. Phoenix, Arizona Adopted Operating and Capital Budget Fiscal Year 2014 (July 1, 2013 through June 30, 2014) Five-Year Operating Forecast and Capital Program FY 2014 through FY 2018 (July 1, 2013 through June 30, 2018) Board of Directors Chair – Mayor Greg Stanton, Phoenix Vice Chair – Councilmember Shana Ellis, Tempe Councilmember Rick Heumann, Chandler Mayor Jerry Weiers, Glendale Councilmember Dennis Kavanaugh, Mesa Executive Management Team Stephen R. Banta, Chief Executive Officer Jyme Sue McLaren, Chief of Staff Raymond Abraham, Chief Operations Officer Rick Brown, Chief Engineer Hillary Foose, Communication & Marketing Director Wulf Grote, Planning & Development Director Carol Ketcherside, Administration & Organizational Development Director Mike Ladino, General Counsel John McCormack, Chief Financial Officer Gardner Tabon, Chief of Safety and Security Adopted FY 2014 Operating and Capital Budget METRO i May 2013 Annual Budget Table of Contents METRO Organization .................................................................................................... 1 METRO Vision ............................................................................................................... 2 FY 2013 Accomplishments ........................................................................................... 2 FY 2014 Goals and Objectives ..................................................................................... 4 Rail Operations Service Plan ....................................................................................... 6 Total Financial Program ............................................................................................... 7 Budget Analysis ......................................................................................... 9 Organizational Staffing .............................................................................................. 11 FY 2014 Budgets: Operating Budget Revenue Operations Budget.................................................................... 13 Future Project Development Budget ........................................................ 14 Agency Operating Budget ........................................................................ 15 Agency Overhead Allocation.................................................................... 16 Capital Budget 20-Mile METRO Initial Segment Budget .................................................. 17 Northwest Extension Phase I Budget ...................................................... 18 Central Mesa LRT Extension Budget ....................................................... 19 Gilbert Road Extension Budget ................................................................ 20 Tempe Streetcar Capital Project Budget.................................................. 21 Non-Prior Rights Utilities Relocation Budget............................................ 21 Systemwide Improvements ...................................................................... 22 Funds Flow FY 2014 .................................................................................................... 23 Adopted FY 2014 Operating and Capital Budget METRO ii May 2013 5 Year Plan Table of Contents 1. Executive Summary METRO Services ................................................................................................ 24  Operations & Maintenance ...................................................................... 25  Planning & Development ........................................................................ 25 Five-Year Plan Summary ................................................................................... 27 2. Five-Year Operating Forecast Uses & Sources of Funds ................................................................................... 30 Operations & Maintenance Cost Estimate FY 2014 - 2018 ................................ 33 Five Year Fares, Costs and Member City Funding ............................................. 34 Project Development Planning ........................................................................... 35 3. Five-Year Capital Program All Projects.......................................................................................................... 37 High Capacity Transit Projects ........................................................................... 40 Northwest Extension ........................................................................................... 41 Central Mesa Extension ..................................................................................... 43 Tempe Streetcar ................................................................................................. 45 Phoenix West Extension ..................................................................................... 46 Gilbert Extension ................................................................................................ 48 Systemwide Improvements................................................................................. 50 Five-Year Staffing Plan ....................................................................................... 51 4. Appendix A-Budget Process............................................................................................... 55 B-Glossary of Terms and Acronyms ................................................................... 57 Adopted FY 2014 Operating and Capital Budget METRO iii May 2013 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 2014 Operating and Capital Budget METRO 1 May 2013 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 2013 ACCOMPLISHMENTS  METRO ridership continues to climb serving 14.0 million riders in CY 2012, 6.7% percent more than in CY 2011. Growth continues in 2013. Adopted FY 2014 Operating and Capital Budget METRO 2 May 2013  Delivered passenger service achieving the following results: Benchmark On Time Performance Operating Cost Per Boarding Average Fare             FY12 Target 95% $2.82 $0.83 FY12 Actual 97% $2.13 $0.88 Highest ridership day for light rail was on October 18, 2012, occurring on the day of an ASU football game and serving more than 65,000 passengers. In May 2012, Valley Metro and local officials broke ground on the first light rail extension in Mesa adding three miles that would connect riders to a third downtown along the system. A Project Construction Grant Agreement signing event occurred last October for the Central Mesa Extension. A federal commitment of $75 million was presented by U.S. Secretary Ray LaHood and FTA Administrator Peter Rogoff. In October 2012, Rideshare Month challenge resulted in 200,000 employees saving more than one ton of pollution and 104,000 miles from being driven. Valley Metro, in partnership with the city of Mesa, began operations of a new, seasonal bus route that serves local commercial, medical, employment and entertainment centers. The conversion of contracted Valley Metro Rail vehicle maintenance to Valley Metro staff created a savings of $1.8 million. A change in the service delivery model for East Valley Dial-a-Ride to taxi cabs creates an anticipated savings of $ 2 million while reducing the cost to operate each trip and providing a custom fit for travel requests. Integration of the bus and rail agencies was completed helping to streamline planning, operations and delivery of transit service. Twenty, 40-foot buses, with Wi-Fi service were delivered for East Valley Express bus service. In January 2013, groundbreaking of the Northwest light rail extension was celebrated adding 3.2 miles to the system. The new segment on 19 th Avenue between Montebello and Dunlap will be operational by early 2016. The Valley Metro Board of Directors unanimously approved an action in January 2013 to unify the bus operations contract for the RPTA and Tempe facilities. The award to a single contractor, First Transit, will result in a savings of $36 million over a ten-year period. APTA President and CEO experiences the Valley Metro’s transit system in February 2013 by touring the Northwest light rail extension construction project, riding an Express bus, and attending the Friends of Transit conference. Adopted FY 2014 Operating and Capital Budget METRO 3 May 2013 FY 2014 GOALS AND OBJECTIVES 1. Build an effective and efficient regional organization to deliver and manage the total transit network for the region.       2. Strive to create a work environment where our employees, our most valued assets, are energized by exceeding the expectations of our customers. Work with regional transit partners to implement administrative efficiencies and develop cost savings through effective communication, coordination and consolidation of work effort. Provide professional development and training opportunities as needed to achieve our goals and objectives. Retain and promote our best people. Pursue innovative contracting techniques to maximize value for regional services and construction projects. Assure strict compliance with state, local and federal laws, regulations and procedures including the application of best practices in all business activities. Operate a safe, efficient, customer-focused, reliable regional transit system.       3. Maintain an efficient operation that meets established schedules and operation standards. Optimize transit services to maximize ridership Maintain our transit system assets in a State of Good Repair Manage effective safety and security programs. Ensure timely and effective customer communication. Continue development of information systems to support transit operations. Develop a regional public transportation system in coordination with regional partners (system planning, seamless service)    Collaborate with other public transportation operators in the region to optimize passenger usage of the entire public transportation system. Collaborate with regional partners to develop and implement effective fare policies and maximize fare revenues across all public transportation modes. Work with regional partners to develop seamless ADA Paratransit service. Adopted FY 2014 Operating and Capital Budget METRO 4 May 2013 4. Maintain sound and trusted relationships with public and private stakeholders including improved coordination with Members, MAG and Grantee.        5. Collaborate 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 Continue pro-active public involvement activities related to future transit facility and corridor projects. Continue to improve and maintain a sound relationship with the FTA to foster federal support for Valley Metro capital and operating programs. Maintain sound relationships with Congressional leaders and Arizona delegation members that maximizes federal funding for the Valley Metro system, especially related to the annual appropriations process and MAP-21. Maintain transparency and reinforce communications with member agencies regarding customer service and budget. Expansion of the regional transit system through effective planning, design, and construction of the transit element of the Regional Transportation Plan.       Maintain or accelerate where possible schedules of all projects in the TLCP. Construct the Central Mesa and NWE projects on time and within budget. Advance the development of the Tempe Streetcar, Phoenix West, Gilbert Road 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 Adopted FY 2014 Operating and Capital Budget METRO 5 May 2013 RAIL OPERATIONS SERVICE PLAN Service Frequency FY 2014 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. No change from FY13. 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 13.1 million passengers for the year with fare revenues generating $12.62 million. Over the course of the fiscal year 2014, average weekday boardings are forecasted at 40,506 while Saturday and Sunday average ridership are forecasted at 31,665 and 21,192 per day respectively. Total Rides Average Weekday 40,506 Saturday 31,665 Sunday 21,192 Total Ridership and Fare Revenue Annual Ridership/Fares Fare Assumption 10,207,592 $ 0.96 $ 9,799,289 1,646,590 $ 0.96 $ 1,580,726 1,292,703 $ 0.96 $ 1,240,995 13,146,885 $ 12,621,010 Average fare per ride is forecasted at $0.96 cents per ride, an increase of 12 cents per ride over FY 2013’s amended budget. The ridership forecast is 2.2% lower than the FY 2013 plan. This projection is based on the fare increase that took place on March 1, 2013. Adopted FY 2014 Operating and Capital Budget METRO 6 May 2013 TOTAL FINANCIAL PROGRAM The FY 2014 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 $178.8 million for the amended FY 2013 Budget. Total expenditures for FY 2014 are estimated to be $202.0 million. The unexpended balance for FY 2013 capital expenditures has been reprogrammed into the project cash flows for expenditure in FY 14 and future years. Uses of Funds - The FY 2014 Budget includes anticipated operating and capital expenditures in the amount of approximately $202.0 million to support program elements during the period of July 1, 2013 through June 30, 2014, as follows: Uses of Funds ($,000) FY 2014 Adopted Operating Activities: Revenue Operations Future Project Development Agency Operating Budget Capital Projects: 20-Mile METRO Initial Segment Northwest Extension Central Mesa Extension Gilbert Road Capital Project Tempe Streetcar Extension Non-Prior Rights Utilities Relocations CNPAs - Mesa Extension CNPAs - Northwest Extension Systemwide Improvements 14 LRV's Interest Subtotal Capital before Debt Service Capital Project Debt Service: Debt Service - Interest Debt Service - Principal Total Uses of Funds FY 2013 Amended Change 34,236 9,741 826 44,803 35,293 10,610 1,010 46,913 (1,057) (869) (184) (2,110) 43,672 54,580 4,177 4,047 11,756 2,581 7,349 5,695 15,897 149,754 2,550 37,003 51,425 13,324 10,813 2,526 8,892 126,533 (2,550) 6,669 3,155 4,177 (9,278) 943 55 7,349 (3,196) 15,897 23,222 4,508 2,980 2,594 2,771 1,915 209 202,045 178,810 23,235 Budget Analysis Note # 1 2 3 4 5 6 7 8 9 10 11 12 13 Note: See pages 9 and 10 for budget analysis notes. Adopted FY 2014 Operating and Capital Budget METRO 7 May 2013 Sources of Funds - The FY 2014 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 2014 Budget includes anticipated capital and operating sources of funds in the amount of approximately $202.0 million, as follows: Sources of Funds ($,000) FY 2014 Adopted Operating Activities: Fare Revenue Advertising Revenue Federal 5307 PM Federal FG PM Federal 5339 AA 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 Prior Year Fund Balance PTF Bond Revenue PTF Sales Tax Revenue Total Sources of Funds FY 2013 Amended Change 12,621 600 3,150 1,350 560 17,987 1,150 7,386 44,803 11,256 500 783 1,044 25,379 1,382 6,569 46,913 1,365 100 2,367 1,350 (484) (7,392) (232) 817 (2,110) 22,520 13,337 2,715 24,968 42,585 51,117 157,242 23,629 21,659 2,700 3,300 33,089 19,461 28,059 131,897 (1,109) (8,322) 15 (3,300) (8,121) 23,124 23,058 25,345 202,045 178,810 23,235 Budget Analysis Note # 14 15 16 17 18 19 20 21 22 23 24 25 26 Note: See pages 9 and 10 for budget analysis notes. Adopted FY 2014 Operating and Capital Budget METRO 8 May 2013 BUDGET ANALYSIS The following is an analysis of the major changes in the FY 2014 Adopted Budget versus the FY 2013 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 Budget Analysis 1 FY 14 activities include environmental work on the Phoenix West and Gilbert Road projects, Alternatives Analysis on the Glendale and South Central corridors and project definition for the Northwest Phase II LRT extension. FY14 overall costs are down by $0.9M. Contracted staff reduced by $1.4 M, offset by increased staff cost $0.4M and $0.1M increase to all other costs. 2 Agency integration efficiencies are realized in FY14 with reductions in contracted staff costs. Overall Agency Operating budget is reduced by $0.2M. 3 CPEV capital project complete, final real estate settlements completed in FY13. 4 Northwest Extension Phase I project costs up $6.7M with full year of construction activities in FY14 versus partial year activities in FY13 . Annual expenditures forecasted at $43.7M. For the Central Mesa LRT extension construction work continues and activity increases in second year of construction. Annual expenditures forecasted at $54.6M. 5 6 Gilbert Road LRT Extension design and real estate acquisition commences. expenditures forecasted at $4.2M. Annual 7 Tempe Streetcar design and utility work commences in early 2014. expenditures forecasted at $4.0M. Annual 8 A significant increase in NPR utility relocation is due to increased activity on the Northwest, Central Mesa, and Tempe Streetcar projects. 9 Northwest Extension Concurrent Non-Project Activities commence for Water Services Division in City of Phoenix. Annual expenditures forecasted at $7.3M. 10 System-wide Improvements include $3.3M OMC Solar Project. Reduction in scope of the project from FY13 due to reduction in sell-back arrangements available with power companies. Final Project scope remains tentative, and budget assumption is predicated on receipt of federal TIGGER grant in the amount of $2.7M. 11 14 LRV Interest is the finance cost portion of final payment to City of Phoenix for 14 light rail vehicles due in June of 2014. Original Capital Lease principal was $42M, with annual principal payments of $10.0 M each paid in FY11, FY12 and FY13. Final principal payment in FY14 is $12.2M. 12 Interest debt service of $4.5M for funding related to Capital Projects. Increase of $1.9M due to new bond issue. 13 Additional principal debt service for new bonding commences in FY15, no material changes from prior year. Adopted FY 2014 Operating and Capital Budget METRO 9 May 2013 Note 14 15 16 17 18 Budget Analysis Fare revenue increases from $11.3 million to $12.6 million; assumes $.96 cents per ride generating a fare recovery ratio of 37.0%. This increase is forecasted based on the March 1st Fare Increase. Advertising revenue, no material changes from prior year. Federal 5307 Preventive Maintenance Funding forecasted to be $3.15M. An unusually large amount of Federal PM Funding became available after the 2012 CMAQ close-out process. Federal Fixed Guideway Preventive Maintenance Funding forecasted to be $1.35M. An unusually large amount of Federal PM Funding became available after the 2012 CMAQ close-out process. A reduction in 5339 Funding in FY14, due to ramp down of federally funded portion of Glendale and Phoenix West alternatives analysis projects. 19 Member City contributions down by $7.4M from FY 13 primarily due to increased fare revenue and a large amount of Federal Preventive Maintenance funding in FY14. 20 MAG/RPTA (RARF) funding, no material changes from prior year. 21 Future Corridor Planning utilize $4.2M in PTF. Systems Planning activities to be funded with $3.2M in PTF. 22 CMAQ to fund Central Mesa LRT Extension construction ( $10.1M) and Tempe Streetcar design ($3.2M). Reduction due to timing of Tempe Streetcar Project later than planned. 23 No Tigger Private Match programmed in FY14 for the OMC Solar Project. Final project scope is tentative, with local funding match not identified. 24 Net contributions for City of Phoenix total $18.2M for Northwest Extension Project costs and related CNPA activity and payback for final payment for the 14 LRVs. Net contributions for City of Mesa total $6.8M for project costs related to Gilbert Rd and CNPA work for the Central Mesa LRT Extension. PTF Bonds to fund $20.6M of Northwest Extension construction and $22.0M to continue construction on the Central Mesa LRT Extension. 25 26 Systemwide Improvements planned activity funded by $31M in PTF, which includes a final principal payment of $12.2M to City of Phoenix for the 14 LRVs. An additional $19.2M to fund NPR utility relocation for Northwest, Central Mesa, and Tempe Streetcar Projects. Adopted FY 2014 Operating and Capital Budget METRO 10 May 2013 Organizational Staffing With the agency integration, the RPTA and VMR budgets are developed with a unified staff plan, with department managers planning the level of effort required to meet the bus and rail activities. With the integration we continue to maintain two discrete financial entities, with fund and project accounting to segregate revenues and expenses. Salary and overhead charges to bus and rail projects are based on actual time worked on each project. For FY 2014 there are 288 employees budgeted in the integrated agency, with 161 FTE’s budgeted to VMR activities and 127 budgeted to RPTA activities. See complete staff listing by Agency effort beginning on page 51. Compensation and fringe benefit assumptions for FY 2014 include:     Compensation budget based on 3% increase. Departmental level control to manage total costs within budget. The Arizona State Retirement System (ASRS) contribution will increase 0.4 percent on July 1, 2013. Agency health care costs will increase. Program design is anticipated to hold total agency fringe benefit cost increases to within 3% of FY 2013 levels. All VMR staff related costs are reimbursed to RPTA. Staffing cost analysis FY 13 FTE FY 14 273 change 288 pct change 15 5% $ million Salaries Fringe Benefits Total Salary and Fringe Benefits Analysis of changes Base Compensation FY13 Base increase Health Care & ASRS Rates New Positions Restructuring savings New Base Compensation FY14 $ $ $ 16.4 $ 6.5 $ 23.0 $ Salary $ $ $ $ $ FY14 Integration Savings versus FY13 Budget Adopted FY 2014 Operating and Capital Budget METRO Fringe 16.4 $ 0.5 $ $ 1.0 $ (0.5) $ 17.4 $ New Positions Reductions in Contracted staff Net Savings to Agency 11 17.4 $ 7.1 $ 24.5 $ 6.5 0.1 0.1 0.4 (0.1) 7.1 1.0 0.5 1.5 Total $ $ $ $ $ $ 23.0 0.6 0.1 1.4 (0.6) 24.5 $ $ $ 1.4 (2.1) (0.8) 6% 8% 7% Savings $ (0.6) $ (0.8) $ (1.4) May 2013 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 2014 – FY 2018 Five-Year Operating and Capital Program will be completed and submitted to the Board of Directors for approval along with the FY 2014 Operating and Capital Budget. (see page 24) Adopted FY 2014 Operating and Capital Budget METRO 12 May 2013 FY 2014 Adopted METRO Revenue Operations Budget 2013/2014 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 Tempe Local Security $ $ 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 $ $ 2012/2013 Amended Budget 1,165,481 7,763,900 3,691,630 3,150,000 1,350,000 29,340 402,480 168,180 233,240 11,423,456 4,325,985 69,862 462,901 34,236,454 $ 8,060,159 427,405 9,256,513 2,946,528 2,066,806 1,676,751 1,887,623 1,483,410 1,261,343 2,235,195 337,650 1,732,224 620,847 244,000 34,236,454 $ 20,989,282 1,619,154 22,608,436 (11,184,980) 11,423,456 $ 8,770,566 676,578 462,901 9,910,045 (5,121,160) 4,788,886 $ 1,530,077 118,033 69,862 1,717,973 (1,414,871) 303,102 $ 34,236,454 Amount Increase/ (Decrease) 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 $ 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 $ 21,919,993 1,368,335 23,288,327 (7,784,769) 15,503,559 $ 9,159,472 571,771 499,413 10,230,656 (3,651,960) 6,578,696 $ $ $ 1,597,924 99,749 76,306 1,773,979 (1,102,163) 671,816 $ (67,847) 18,284 (6,443) (56,006) (312,708) (368,714) $ 35,292,962 $ (1,056,509) $ $ $ $ 126,051 839,695 399,264 2,367,108 1,350,000 4,890 67,080 28,030 (362,270) (4,080,103) (1,753,298) (6,443) (36,512) (1,056,509) (566,322) (128,293) (354,103) 330,955 (279,913) 499,647 115,795 (391,842) (148,035) 47,017 (114,530) 96,768 (29,153) (134,500) (1,056,509) Allocation of Operating Costs Phoenix Base Costs Regional Security $ 66.036% Less Fares,Advertising & Fed PM Distributed Phoenix Net Contribution $ Tempe Base Costs Regional Security Local Security $ 28.946% Less Fares,Advertising & Fed PM Distributed Tempe Net Contribution $ Mesa Base Costs Regional Security Local Security $ 5.018% Less Fares,Advertising & Fed PM Distributed Mesa Net Contribution $ Total Operating Costs Adopted FY 2014 Operating and Capital Budget METRO $ 13 $ $ $ $ (930,710) 250,819 (679,891) (3,400,211) (4,080,103) (388,906) 104,807 (36,512) (320,611) (1,469,199) (1,789,810) May 2013 FY 2014 Adopted Future Project Development Budget 2013/2014 Adopted Budget Sources of Funds FTA - Section 5339 AA Peoria * Phoenix * Mesa * MAG RPTA (RARF/Other) PTF Revenue Sales Tax $ $ 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 Postage Public meetings & information Other direct expenditures Local meetings & mileage Business Travel LRT project capital outlay Agency Overhead Allocation $ $ 2012/2013 Amended Budget 560,000 55,000 140,000 450,000 500,000 650,000 7,385,613 9,740,613 $ 2,406,604 125,970 75,000 350,000 2,535,000 200,000 323,040 2,425,000 11,500 31,750 38,500 21,000 10,250 4,000 24,700 47,550 1,110,749 9,740,613 $ $ $ Amount Increase/ (Decrease) 1,044,000 55,000 210,000 1,350,000 500,000 882,000 6,568,994 10,609,994 $ 2,174,609 142,325 75,000 350,000 2,920,000 300,000 198,500 3,500,000 11,000 11,750 7,000 6,500 500 19,200 61,100 832,510 10,609,994 $ $ $ (484,000) (70,000) (900,000) (232,000) 816,619 (869,381) 231,995 (16,355) (385,000) (100,000) 124,540 (1,075,000) 500 20,000 38,500 14,000 3,750 3,500 5,500 (13,550) 278,239 (869,381) * City of Peoria funding for the Peoria Transit Study to be funded from existing cash reserve. * Phoenix West Alternatives Analysis, Draft EIS, and Conceptual Engineering to be funded by PTF ($1.675M) * West Phoenix/Glendale Corridor Alternatives Analysis is anticipated to be funded with PTF ($750,000) * City of Phoenix funding provides local match for South Central Corridor study ($140,000) * City of Mesa funding provides Gilbert Road planning study ($450,000) * Northwest Phase II Corridor project definition study to be funded with by PTF ($400,000) 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 2014 Operating and Capital Budget METRO 14 May 2013 FY 2014 Adopted Agency Operating Budget 2013/2014 Adopted Budget Sources of Funds Chandler Glendale Mesa Phoenix Tempe $ $ Expenditures Salaries and Fringe Benefits RPTA Overhead Consultants - Other Conferences Business Travel Advertising Printing Postage Public meetings & information Other direct expenditures LRT audit and accounting costs Agency Overhead Allocation $ $ 2012/2013 Amended Budget 24,786 24,786 103,274 413,094 260,249 826,188 $ 338,795 17,733 130,000 11,000 20,000 250 4,000 4,250 62,500 44,550 36,000 157,110 826,188 $ $ $ Amount Increase/ (Decrease) 30,299 30,299 126,246 504,983 318,140 1,009,967 $ 265,622 92,323 275,000 10,500 30,500 500 3,750 50,500 143,050 36,000 102,222 1,009,967 $ $ $ (5,513) (5,513) (22,972) (91,889) (57,890) (183,779) 73,173 (74,590) (145,000) 500 (10,500) (250) 250 4,250 12,000 (98,500) 54,888 (183,779) Note: The Cities of Chandler and Glendale contribute $50,000 each annually to METRO. $24,786 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 2014 Operating and Capital Budget METRO 15 May 2013 FY 2014 Adopted Agency Overhead Allocation 2013/2014 Adopted Budget Allocation of Costs Agency Overhead Allocation: Revenue Operations Northwest Extension Central Mesa Tempe South Gilbert Road Agency Operating Future Projects NPR Utilities Systemwide Improvements $ $ 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 $ $ Adopted FY 2014 Operating and Capital Budget METRO 2012/2013 Amended Budget 412,798 345,208 276,403 141,404 87,700 157,110 1,110,749 16,233 33,451 2,581,056 $ 912,267 47,751 1,447,125 (581,450) 22,988 55,594 30,241 81,005 45,160 191,525 19,250 4,000 305,600 2,581,056 $ 16 $ $ Amount Increase/ (Decrease) 377,597 108,911 303,286 199,826 102,222 832,510 16,667 14,731 1,955,749 $ 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 $ $ $ 35,201 236,297 (26,883) (58,422) 87,700 54,888 278,239 (434) 18,720 625,307 761,285 37,904 38,274 (15,379) (208,692) (8,198) (4,459) (11,945) (6,659) 64,025 1,250 300 (22,400) 625,307 May 2013 FY 2014 Adopted 20-Mile METRO Initial Segment Budget 2013/2014 Adopted Budget Sources of Funds Local Match - Mesa Local Match - Phoenix Local Match - Tempe $ $ Expenditures Consultants - Planning/Environmental Real estate acquisition $ $ Adopted FY 2014 Operating and Capital Budget METRO 17 2012/2013 Amended Budget - $ - $ $ $ Amount Increase/ (Decrease) 2,445 2,533,540 14,015 2,550,000 $ 50,000 2,500,000 2,550,000 $ $ $ (2,445) (2,533,540) (14,015) (2,550,000) (50,000) (2,500,000) (2,550,000) May 2013 FY 2014 Adopted Northwest Extension Phase I Budget 2013/2014 Adopted Budget Sources of Funds PTF Revenue Bonds Phoenix - T2000 Phoenix NWX Advance $ $ 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 Business Assistance Real estate acquisition Community Advisory Board Advertising Printing Postage Public meetings & information Other direct expenditures LRT project office expense Local meetings & mileage LRT project capital outlay Agency Overhead Allocation $ $ 2012/2013 Amended Budget 20,625,297 23,046,620 43,671,917 $ 785,118 41,095 50,000 2,063,109 25,000 100,000 24,955,000 7,282,089 700,000 741,891 71,457 113,250 6,000,000 120,000 1,000 47,000 8,500 10,000 16,000 22,200 12,500 161,500 345,208 43,671,917 $ $ $ Amount Increase/ (Decrease) 50,000 36,953,380 37,003,380 $ 305,326 19,908 50,000 1,071,936 25,000 81,000 18,448,000 1,292,800 921,000 270,000 358,500 14,000,000 20,000 500 2,000 3,500 25,000 108,911 37,003,380 $ $ $ 20,625,297 (50,000) (13,906,761) 6,668,536 479,792 21,187 991,173 19,000 6,507,000 5,989,289 (221,000) 471,891 (287,043) 113,250 (8,000,000) 120,000 1,000 27,000 8,000 10,000 14,000 22,200 9,000 136,500 236,297 6,668,537 FY 2014 Northwest Extension - Concurrent Non-Project Activities (CNPA) Budget 2013/2014 Adopted Budget Sources of Funds Phoenix-WSD Expenditures Contractor - Design Build Adopted FY 2014 Operating and Capital Budget METRO 2012/2013 Amended Budget Amount Increase/ (Decrease) $ $ 7,348,641 7,348,641 $ $ - $ $ 7,348,641 7,348,641 $ $ 7,348,641 7,348,641 $ $ - $ $ 7,348,641 7,348,641 18 May 2013 FY 2014 Adopted Central Mesa HCT Capital Project 2013/2014 Adopted Budget Sources of Funds PTF Revenue Bonds FTA Section 5309 CMAQ $ $ 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 Real estate acquisition Business Assistance Community Advisory Board Advertising Printing Postage Public meetings & information Other direct expenditures LRT project office expense Local meetings & mileage Business Travel Vehicle Related Expense LRT project capital outlay Agency Overhead Allocation $ $ 2012/2013 Amended Budget 21,960,000 22,519,811 10,100,000 54,579,811 $ 665,011 34,809 2,730,984 25,000 1,481,518 39,955,000 798,000 179,299 2,680,000 837,500 255,957 4,100,000 113,250 120,000 6,000 17,000 10,500 5,000 7,500 125,180 6,500 5,200 27,500 116,700 276,403 54,579,811 $ $ $ Amount Increase/ (Decrease) 16,796,130 23,628,914 11,000,000 51,425,044 $ 876,706 57,151 2,244,380 25,000 370,477 38,026,204 954,940 685,000 428,500 7,000,000 6,000 17,500 5,500 7,000 23,000 147,100 11,500 7,800 20,000 208,000 303,286 51,425,044 $ $ $ 5,163,870 (1,109,103) (900,000) 3,154,767 (211,695) (22,342) 486,604 1,111,041 1,928,796 (156,940) 179,299 2,680,000 152,500 (172,543) (2,900,000) 113,250 120,000 (500) 5,000 (2,000) (15,500) (21,920) (5,000) (2,600) 7,500 (91,300) (26,883) 3,154,767 FY 2014 Mesa Extension - Concurrent Non-Project Activities (CNPA) Budget 2013/2014 Adopted Budget 2012/2013 Amended Budget Amount Increase/ (Decrease) Sources of Funds Mesa Expenditures Contractor - Design Build Adopted FY 2014 Operating and Capital Budget METRO $ $ 2,581,440 2,581,440 $ $ 2,526,000 2,526,000 $ $ 55,440 55,440 $ $ 2,581,440 2,581,440 $ $ 2,526,000 2,526,000 $ $ 55,440 55,440 19 May 2013 FY 2014 Adopted Gilbert Road Capital Project 2013/2014 Adopted Budget Sources of Funds Mesa Expenditures Salaries and Fringe Benefits RPTA Overhead Consultants - PM/CM Consultants - Design & Construction Support City management & administration Consultants - Art Design Consultants - Other 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 Amount Increase/ (Decrease) $ $ 4,176,873 4,176,873 $ $ - $ 189,117 9,899 600,000 700,000 200,000 160,000 114,707 1,450,000 10,000 50,000 17,500 7,000 401,250 100,000 3,500 4,000 72,200 87,700 4,176,873 $ - $ Adopted FY 2014 Operating and Capital Budget METRO 2012/2013 Amended Budget 20 $ - $ $ 4,176,873 4,176,873 $ 189,117 9,899 600,000 700,000 200,000 160,000 114,707 1,450,000 10,000 50,000 17,500 7,000 401,250 100,000 3,500 4,000 72,200 87,700 4,176,873 $ May 2013 FY 2014 Adopted Tempe Streetcar HCT Capital Project 2013/2014 Adopted Budget 2012/2013 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 - Other (7200) Consultants - Planning/Environmental/PE Pothole Program Real estate acquisition LRT project capital outlay Business Travel Other direct expenditures Agency Overhead Allocation $ $ 809,300 3,237,200 4,046,500 $ 346,249 18,124 543,577 170,000 921,529 450,000 75,000 90,417 750,000 250,000 1,200 289,000 141,404 4,046,500 $ $ $ 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 $ (1,855,512) (7,422,047) (9,277,558) $ (245,075) (20,426) (390,254) (433,477) (2,203,471) (6,000,000) (100,000) 75,000 (131,083) 200,000 (75,000) (150,000) (5,000) (3,600) 263,250 (58,422) (9,277,558) $ FY 2014 Adopted Non-Prior Rights Utilities Relocation Budget 2013/2014 Adopted Budget Sources of Funds PTF Revenue Sales Tax Expenditures Salaries and Fringe Benefits RPTA Overhead Tempe Streetcar NPR Utilities Mesa Extension NPR Utilities Northwest Extension NPR Utilities Agency Overhead Allocation Amount Increase/ (Decrease) $ $ 11,755,572 11,755,572 $ $ 10,812,800 10,812,800 $ $ 942,772 942,772 $ 35,006 1,833 999,500 2,568,000 8,135,000 16,233 11,755,572 $ 43,308 2,824 750,000 2,000,000 8,000,000 16,667 10,812,800 $ (8,302) (991) 249,500 568,000 135,000 (434) 942,772 $ Adopted FY 2014 Operating and Capital Budget METRO 2012/2013 Amended Budget 21 $ $ May 2013 FY 2014 Adopted Systemwide Improvements 2013/2014 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 Solar Canopy Project Consultants - Other Advertising Printing Postage Other direct expenditures 14 Light Rail Vehicles - Interest Systemwide Capital Agency Overhead Allocation $ $ 2012/2013 Amended Budget (12,185,572) 31,063,438 2,715,000 21,592,866 $ 131,035 6,859 25,000 125,000 3,332,106 15,897,405 2,042,010 33,451 21,592,866 $ $ $ Amount Increase/ (Decrease) (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 $ $ $ (2,863,080) (283,103) (49,389) 19,181,757 15,000 (3,300,000) 12,701,185 31,682 399 (2,292,630) (97,500) (10,000) (5,000) (2,000) (5,000) 15,897,405 (834,891) 18,720 12,701,185 FY 2014 Adopted Scheduled Capital Debt Service 2013/2014 Adopted Budget Sources of Funds PTF Revenue Sales Tax Expenditures Debt Service - Interest Debt Service -Principal Amount Increase/ (Decrease) $ $ 7,488,221 7,488,221 $ $ 5,364,447 5,364,447 $ $ 2,123,774 2,123,774 $ 4,508,221 2,980,000 7,488,221 $ 2,593,481 2,770,966 5,364,447 $ 1,914,740 209,034 2,123,774 $ Adopted FY 2014 Operating and Capital Budget METRO 2012/2013 Amended Budget 22 $ $ May 2013 Funds Flow Fiscal Year 2014 $Thousands Adopted Funds Flow - Fiscal Year 2014 ($ Thousands) Funding Sources Fare Revenue: Phoenix Tempe Mesa Advertising Revenue: Phoenix Tempe Mesa Phoenix Tempe Mesa Glendale Chandler Peoria $ Adopted FY 2014 Operating and Capital Budget METRO - $ - Tempe Streetcar $ - Gilbert Road $ - Other Capital $ 23,047 Operations & Proj. Dev. - 7,764 3,692 1,165 Total Funding $ 402 168 29 11,977 5,049 856 25 25 55 (4,837) 4,177 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 TOTAL FUNDING Northwest Extension Central Mesa 2,581 402 168 29 30,187 5,049 7,614 25 25 55 22,520 10,100 2,715 50,307 21,960 $ 54,580 20,625 $ 43,672 7,386 500 650 809 $ 4,047 23 22,520 560 13,337 3,150 1,350 2,715 57,693 43,395 500 650 560 3,150 1,350 3,237 $ 4,177 $ 50,766 $ 44,803 7,764 3,692 1,165 $ 202,045 May 2013 Five – Year Operating Forecast and Capital Program FY 2014 – FY 2018 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 2014-2018 24 Five – Year Operating Forecast and Capital Program METRO May 2013 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, Proposed 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 2014-2018 25 Five – Year Operating Forecast and Capital Program METRO May 2013 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. FY 2014-2018 26 Five – Year Operating Forecast and Capital Program METRO May 2013 Five-Year Plan Summary Uses of Funds: The cumulative uses of funds, FY 2014 through FY 2018, are summarized as follows: Uses of Funds Five Year Total LRT Operations & Maintenance Project Development Planning Agency Operating Budget $ Subtotal - Operations and Project Development Northwest Extension Phase 1 Central Mesa Gilbert Rd Tempe Streetcar Phx West CNPA Projects Non-Prior Rights Utilities Systemwide Improvements PTF Debt Service 249,158 177,520 131,071 149,529 126,194 108,204 9,930 35,807 40,032 109,374 Subtotal - Capital Total Uses FY 2014-2018 27 Five – Year Operating Forecast and Capital Program METRO ($,000) 198,125 46,654 4,379 887,661 $ 1,136,819 May 2013 Sources of Funds: The cumulative sources of funds, FY 2014 through FY 2018, are summarized as follows: Sources of Funds Five Year Total LRT Fares Advertising ($,000) $ Member City Contributions: Phoenix Tempe Mesa Glendale Chandler Peoria Regional Funding: MAG / RPTA PTF Sales Tax Revenue PTF (Reserve) / Borrowing Federal Funding: FTA Section 5309 FTA Section 5339 AA CMAQ Federal 5307 PM STP Federal FGPM Other Federal Total Sources FY 2014-2018 28 Five – Year Operating Forecast and Capital Program METRO 71,772 3,186 34,291 29,694 27,464 132 532 55 5,150 317,135 237,962 $ 154,793 3,548 99,480 10,929 136,631 1,350 2,715 1,136,819 May 2013 Table 1–Five-Year Capital Program and Operating Forecast Summary ($000) 2014 2015 2016 2017 2018 Cumulative 2014 - 2018 USES OF FUNDS LRT Operations & Maintenance Project Development Planning Agency Operating Budget $ Subtotal - Operations and Proj Dev Northwest Extension Phase 1 Central Mesa Gilbert Rd Tempe Streetcar Phx West CNPA Projects Non-Prior Rights Utilities Systemwide Improvements PTF Debt Service $ 35,130 14,044 850 $ 38,468 10,513 875 $ 44,340 5,706 901 $ 45,951 6,650 927 $ 198,125 46,654 4,379 44,803 43,672 54,580 4,177 4,046 9,930 11,756 21,593 7,488 50,024 87,447 55,740 39,370 18,049 2,023 7,560 1,107 16,889 49,856 44,901 20,751 43,730 32,948 8,320 4,631 6,576 19,294 50,947 1,500 40,238 42,597 41,412 6,993 32,784 53,528 22,014 28,554 56,449 11,860 3,763 32,919 249,158 177,520 131,071 149,529 126,194 108,204 9,930 35,807 40,032 109,374 157,242 228,185 181,151 165,524 155,559 887,661 $ 202,045 $ 278,209 $ 231,007 $ 216,471 $ 209,087 $ 1,136,819 $ $ $ $ (42,895) 5,790 6,770 27 27 1,000 (29,280) $ $ Subtotal - Capital Total Uses 34,236 9,741 826 SOURCES OF FUNDS Phoenix Tempe Mesa Glendale Chandler Peoria MAG / RPTA Subtotal PTF Sales Tax Revenue PTF (Reserve) / Borrowing LRT Fares Advertising FTA Section 5309 FTA Section 5339 AA CMAQ STP Federal 5307 PM Federal FGPM Other Federal Subtotal Total Sources 30,187 5,049 7,614 25 25 55 1,150 44,105 14,220 6,154 3,092 26 426 1,000 24,918 15,090 6,677 4,137 26 26 1,000 26,956 17,689 6,024 5,851 28 28 1,000 30,618 34,291 29,694 27,464 132 532 55 5,150 97,318 58,181 42,907 76,420 71,058 57,854 40,080 60,893 69,701 63,787 14,217 317,135 237,962 12,621 600 13,000 618 13,750 637 15,961 656 16,440 675 71,772 3,186 22,520 560 13,337 3,150 1,350 2,715 43,632 $ 202,045 33,829 1,409 17,428 37,008 2,521 92,195 $ 278,209 23,177 1,165 23,941 41,106 2,341 91,731 $ 231,007 33,599 414 25,266 37,824 1,437 98,540 $ 216,471 41,668 19,508 20,693 1,480 83,349 $ 209,087 154,793 3,548 99,480 136,631 10,929 1,350 2,715 409,445 $ 1,136,819 Note: Cost and revenues reported on accrual basis. PTF Sales Tax Revenues are forecasted in accordance with ADOT projections published in October 2012. The Rail PTF (Reserve) / Borrowing represents forecasted expenditures from bond proceeds. 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 2014-2018 29 Five – Year Operating Forecast and Capital Program METRO May 2013 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 Proposed 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, and memberships to transportation related organizations. Five-Year Operating Uses and Sources of Funds: Operating costs and funding planned for the FY 2014 through FY 2018 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 AA RPTA/MAG/ CMAQ / STP Total Sources FY 2014-2018 30 Five – Year Operating Forecast and Capital Program METRO $ $ $ ($,000) 198,125 46,653 4,379 249,158 ($,000) 71,772 3,185 76,080 29,694 11,985 131 531 55 118,477 $ 34,745 10,930 1,350 3,549 5,150 249,158 May 2013 Table 2 – Five-Year Operating Forecast - - - - - - - - - - - - - - - - - - -Year of Expenditure ($,000) - -- - - - - - - 2014 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 AA Total Sources 2015 2016 2017 2018 TOTAL 34,236 9,741 826 44,803 35,130 14,044 850 50,023 38,468 10,513 875 49,856 44,340 5,706 901 50,947 45,951 6,650 927 53,529 198,125 46,653 4,379 249,158 7,764 3,692 1,165 12,621 7,997 3,802 1,200 13,000 8,687 2,931 2,132 13,750 10,084 3,402 2,475 15,961 10,387 3,504 2,549 16,440 44,919 17,331 9,522 71,772 11,977 5,049 856 25 25 55 600 18,587 14,220 6,154 730 26 426 618 22,173 15,090 6,677 1,513 26 26 637 23,968 17,105 5,790 4,356 27 27 656 27,961 17,689 6,024 4,530 28 28 675 28,973 76,080 29,694 11,985 131 531 55 3,185 121,662 7,386 9,921 7,631 4,173 5,635 34,745 500 650 3,150 1,350 560 44,803 500 500 2,521 1,409 50,023 500 500 2,341 1,165 49,856 500 500 1,437 414 50,947 500 500 1,480 53,529 2,500 2,650 10,930 1,350 3,549 249,158 5-Year Operating Assumptions:  Central Mesa Extension opens revenue service in March 2016  Northwest Phase I opens revenue service in March 2016 FY 2014-2018 31 Five – Year Operating Forecast and Capital Program METRO May 2013 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 March 2013, the current Regional Fare Policy is as follows: ***Reduced Fare – ADA Certified, Youth (6-18) and Seniors (age 65 and over) FY 2014-2018 32 Five – Year Operating Forecast and Capital Program METRO May 2013 Table 3 – Rail Operations and Maintenance Cost Forecast FY 2014 through 2018 - - - - - - - - - - - - -Year of Expenditure Dollars - - ---- - - - - - Annual Cost Projection Extended Cost Transportation Labor and Materials $ 9,256,513 Labor - Fare Inspection & Security 2,946,528 Propulsion Power 2,066,806 Emergency Contingency (Bus Bridges, etc.) 98,000 Transportation Total Vehicle Maintenance METRO LRVM Labor $ 3,862,357 LRVM Parts and Materials 1,471,589 LRVM PM Overhauls 565,162 Maintenance Other / Insurance - Accident Recoveries (360,000) Vehicle Maintenance Total Systems and Facilities Maintenance Track/Station/Facility Maintenance $ 2,661,757 Traction Power System Maintenance Labor 1,047,477 Signals/Communications/TVMs Labor 1,519,193 Material Control/Supplies/Other Direct Costs 2,036,548 Utilities 1,261,343 Fare Collection Material & Armored Car 273,031 Less Transfer TVM Billing to RPTA (105,338) Fare Revenue Handling Fee 306,119 Systems and Facilities Maintenance Total Administration Property and General Liability Insurance $ 1,732,224 VMR Management 1,392,540 General & Administrative Costs 1,682,117 Contingency Reserve 522,487 Administration Total TOTAL OPERATING COSTS FY 2014 $ FY 2015 FY 2016 FY 2017 FY2018 14,367,847 $ 14,798,882 $ 16,397,021 $ 19,259,409 $ 19,837,191 $ 5,539,108 $ 3,978,228 1,515,737 208,266 (370,800) 5,331,431 $ 4,292,277 1,696,203 106,366 (381,924) 5,712,923 $ 4,820,932 2,024,345 220,457 (393,382) 6,672,353 $ $ 9,000,131 $ 9,510,334 $ 10,426,250 $ 11,727,342 $ 11,973,816 $ 5,329,368 $ 5,489,249 $ 5,931,912 $ 6,680,805 $ 6,881,230 $ 34,236,454 $ 35,129,897 $ 38,468,106 $ 44,339,909 $ 45,951,096 4,965,560 2,085,076 613,407 (405,183) 7,258,860 In FY 18, significant cost increases to perform preventative maintenance are scheduled. In fiscal year 2016 the Northwest Extension and the Central Mesa alignments are forecasted to commence revenue operations (March 2016). The total $38.5 million operating cost forecast in FY16 is composed of the following components:  Base 20 mile system $ 36.1 M  Northwest Extension (4 months) $ 1.2 M  Central Mesa Extension ( 4 months) $ 1.2 M The total $44.3 million operating cost forecast in FY 17 is composed of the following components:  Base 20 mile system $ 37.3 M  Northwest Extension $ 3.5 M  Central Mesa Extension $ 3.5 M The total $46.0 million operating cost forecast in FY 18 is composed of the following components:  Base 20 mile system $ 38.8 M  Northwest Extension $ 3.6 M  Central Mesa Extension $ 3.6 M FY 2014-2018 33 Five – Year Operating Forecast and Capital Program METRO May 2013 Table 4 – Rail Operations Fares and Member City Funding FY 2014 to FY 2018 Fiscal Year RIDERSHIP Baseline Rides Weekday Saturday Sunday Total Baseline Rides OPERATING REVENUES Fare Revenues Phoenix Tempe Mesa Total Fare Revenues FY 2014 Annual Ridership / Fares 2014 $ $ $ 0.96 0.96 0.96 $ $ $ $ 9,799,289 1,580,726 1,240,995 12,621,010 61.5157% $ $ $ 29.2499% 9.2344% $ FY 2017 FY 2018 15,803,266 16,277,364 9,799,289 $ 1,580,726 1,240,995 12,621,010 $ 10,093,267 $ 1,628,148 1,278,225 12,999,640 $ 10,675,863 $ 1,722,126 1,352,006 13,749,995 $ 12,392,777 $ 1,999,082 1,569,438 15,961,298 $ 12,764,561 2,059,055 1,616,521 16,440,137 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 7,763,900 $ 3,691,630 1,165,481 12,621,010 $ 7,996,817 $ 3,802,378 1,200,445 12,999,640 $ 8,687,069 $ 2,930,892 2,132,033 13,749,995 $ 10,084,142 $ 3,402,245 2,474,912 15,961,298 $ 10,386,666 3,504,312 2,549,159 16,440,137 $1.01 $1.01 37% 37% 36% 36% 618,000 $ 414,554 173,225 30,220 636,540 $ 414,284 168,062 54,194 655,636 $ 414,222 139,753 101,661 675,305 426,649 143,945 104,711 $ 3,150,000 $ 2,113,020 882,945 154,035 2,521,391 $ 1,691,349 706,746 123,296 2,341,337 $ 1,570,569 656,277 114,491 1,436,896 $ 963,870 402,762 70,264 1,480,003 992,786 414,845 72,372 $ 1,350,000 905,580 378,405 66,015 22,608,436 $ 9,910,045 1,717,973 34,236,454 $ 23,198,431 $ 10,168,660 1,762,805 35,129,897 $ 25,036,455 $ 10,156,524 3,275,127 38,468,106 $ 28,013,381 $ 9,451,313 6,875,215 44,339,909 $ 29,031,309 9,794,747 7,125,041 45,951,096 11,423,456 $ 4,788,886 303,102 16,515,444 $ 13,095,711 $ 5,486,311 408,844 18,990,865 $ 14,364,533 $ 6,401,293 974,408 21,740,234 $ 16,551,147 $ 5,506,553 4,228,378 26,286,079 $ 17,225,207 5,731,645 4,398,799 27,355,651 4.8900% 67.0800% 28.0300% 4.8900% $ 28.9459% 5.0180% TOTAL OPERATING REVENUE $0.96 600,000 $ 402,480 168,180 29,340 28.0300% 66.0361% $0.96 $ 67.0800% Federal Fixed Guideway Preventative Maintenance Phoenix 67.0800% Tempe 28.0300% Mesa 4.8900% Gross Operating Costs Phoenix Tempe Mesa Total Operating Costs Member City Funding Phoenix Tempe Mesa Total Member City Funding FY 2016 14,322,912 $0.96 Fare Recovery Ratio Federal 5307 PM Phoenix Tempe Mesa FY 2015 13,541,292 Fare Assumption 10,207,592 1,646,590 1,292,703 13,146,885 Avg Fare Advertising Revenue Phoenix Tempe Mesa FY 2014 13,146,885 $ $ $ $ 34,236,454 $ 35,129,897 $ 38,468,106 $ 44,339,909 36% $ 45,951,096 Fare revenue is forecasted to grow from FY 14 through FY 18 with a combination of increased ridership and increased fare structure. Baseline ridership is forecasted to grow by 3% per year. Additional passenger rides are developed in FY 16 through FY 18 with the addition of the Central Mesa and Northwest Extensions. FY 2014-2018 34 Five – Year Operating Forecast and Capital Program METRO May 2013 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.  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. FY 2014-2018 35 Five – Year Operating Forecast and Capital Program METRO May 2013 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 2014 to FY 2018 - - - - - - - - - - - - - - - - - - - - - (YOE $,000) - - - - - - - - - - - - - - - - - - - - - 2014 2015 2016 2017 2018 Total USES OF FUNDS CPDA Tempe South AA / DEA / CE / PD (Pre-NEPA) Phoenix West AA / DEIS / CE / Early Action West Phoenix/Glendale Corridor AA Northeast Phoenix AA / DEIS / CE South Central Central Mesa Phase II (Gilbert Road) Fiesta Santan Central Mesa Rio Salado Northwest Phase II Northwest Phase I Systems Planning & Project Development Design Criteria Total Uses $ $ 1,340 1,675 750 700 450 400 4,225 200 9,741 $ 1,381 983 1,380 1,000 2,500 1,725 15 500 29 500 300 54 3,627 50 $ 14,044 $ 1,422 1,093 2,500 1,438 29 15 400 3,566 50 $ 10,513 $ 55 140 450 560 7,386 650 500 9,741 $ $ $ $ 1,465 518 15 3,658 50 5,706 $ 104 15 414 4,173 500 500 5,706 $ $ 1,509 1,323 15 3,753 50 6,650 $ 15 5,635 500 500 6,650 $ $ 7,117 983 5,471 1,750 5,000 4,381 524 500 44 900 700 54 18,829 400 46,653 SOURCES OF FUNDS Peoria Phoenix Tempe Mesa Chandler $ FTA 5339 AA PTF RPTA MAG Total Sources $ FY 2014-2018 36 Five – Year Operating Forecast and Capital Program METRO 699 400 215 400 1,409 9,921 500 500 $ 14,044 288 429 1,165 7,631 500 500 $ 10,513 $ $ $ 55 1,230 400 1,124 400 3,549 34,745 2,650 2,500 46,653 May 2013 FIVE-YEAR CAPITAL PROGRAM – FY 2014 THROUGH FY 2018 Capital projects included in the five year program include:       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. Gilbert Road Extension- 1.9 mile alignment extending from terminus of Central Mesa extension eastbound to Gilbert Road. Tempe Streetcar – 2.6 mile alignment extending southward along Mill Avenue in downtown Tempe from Rio Salado to Southern. (Final alignment pending). 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 2014-2018 37 Five – Year Operating Forecast and Capital Program METRO May 2013 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 $864 million through the five-year planning horizon. These uses of funds are summarized as follows: FY 2014 THROUGH FY 2018 Uses of Funds - Capital Projects ($,000) NW Ext Phase 1 Central Mesa Gilbert Rd Tempe Streetcar Phx West CNPA NPR Utilities Systemwide Improvements PTF Bond Debt Service: Principal Payments Interest Payments $ Total Capital Costs $ 177,520 131,071 149,529 126,194 108,204 9,930 35,807 40,031 70,580 38,794 887,660 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 2014 THROUGH FY 2018 Sources of Funds - Capital Projects ($,000) Phoenix Mesa Public Transportation Funds Federal Revenues: FTA Sec 5309 CMAQ STP Other Federal $ Total Capital Revenues $ (41,790) 15,479 520,352 154,793 99,480 136,631 2,715 887,660 Note: Negative sources of funds reflect reimbursements to City of Phoenix for the Northwest Extension Advance (source of funding is Public Transportation Fund). FY 2014-2018 38 Five – Year Operating Forecast and Capital Program METRO May 2013 Table 6 – Five-Year Capital Program / All Projects ($000) 2014 USES OF FUNDS Northwest Extension Phase 1 Central Mesa Gilbert Rd Tempe Streetcar Phx West Subtotal HCT Corridors $ CNPA Projects Non-Prior Rights Utilities Systemwide Improvements PTF Bond Debt Service: Principal Payments Interest Payments Total Capital Costs SOURCES OF FUNDS Phoenix Mesa Subtotal Public Transportation Funds Sales Tax Proceeds Bond Proceeds Federal Revenues: FTA CMAQ STP Other Federal Subtotal Federal Total Revenues 43,672 54,580 4,177 4,046 106,475 2015 $ 87,447 55,740 39,370 18,049 2,023 202,629 2016 $ 44,901 20,751 43,730 32,948 8,320 150,650 2017 $ 1,500 40,238 42,597 41,412 125,747 $ 2018 FY 2014-18 22,014 28,554 56,449 107,017 $ 177,520 131,071 149,529 126,194 108,204 692,518 9,930 11,756 21,593 7,560 1,107 4,631 6,576 6,993 11,860 3,763 9,930 35,807 40,031 2,980 4,508 $ 157,242 10,530 6,359 $ 228,185 10,965 8,329 $ 181,151 22,520 10,264 $ 165,524 23,585 9,334 $ 155,559 70,580 38,794 $ 887,660 $ $ $ $ (60,000) 2,414 (57,586) $ $ (41,790) 15,479 (26,311) 18,210 6,758 24,968 2,362 2,362 2,624 2,624 1,321 1,321 93,702 50,795 42,907 137,558 66,499 71,058 90,303 50,223 40,080 126,421 56,720 69,701 72,369 58,152 14,217 520,352 282,390 237,962 22,520 13,337 2,715 38,572 $ 157,242 33,829 17,428 37,008 88,265 $ 228,185 23,177 23,941 41,106 88,224 $ 181,151 33,599 25,266 37,824 96,689 $ 165,524 41,668 19,508 20,693 81,869 $ 155,559 154,793 99,480 136,631 2,715 393,619 $ 887,660 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 2014 $115 million FY 2016 $125 million The bonds are funded by the Public Transportation Fund sales tax proceeds over the 12 years remaining of the Prop 400 initiative. FY 2014-2018 39 Five – Year Operating Forecast and Capital Program METRO May 2013 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 construction is ongoing. Under the plan additional service areas are identified; a 3.1-mile light rail extension east into downtown Mesa which is in construction, 2.6-miles into south Tempe, 5-miles west into Glendale, 11miles 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: 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 Project Development, costs are included in the capital budget and funded by Federal, regional, and local sources. FY 2014-2018 40 Five – Year Operating Forecast and Capital Program METRO May 2013 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 2014-2018 41 Five – Year Operating Forecast and Capital Program METRO May 2013 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. 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 $326.6 million, excluding financing costs. - - - - - - - ($,000) - - - Northwest Extension CAPITAL COSTS NPR Utilities Project Costs Financing Costs Total Capital Costs CAPITAL REVENUES Phoenix NWX Advance Phoenix T 2000 Transit Tax PTF Revenue Total Local Total Capital Revenue Pre-2014 $ 2014 2015 2016 12,764 126,643 $ 139,407 $ 8,157 43,672 $ 51,829 $ 3,009 87,447 $ 90,456 44,901 $ 44,901 $ 36,953 89,690 12,764 139,407 $ 23,047 28,782 51,829 $ $ $ 139,407 $ 51,829 $ 90,456 90,456 90,456 $ 44,901 44,901 $ 44,901 2017 $ $ 2018 1,500 1,500 $ $ TOTAL - $ 23,930 302,663 1,500 $ 328,093 $(60,000) 61,500 1,500 $ - $ $ $ - $ 328,093 1,500 89,690 238,403 328,093 Concurrent Non-Project Activities Related to Northwest Extension: - - - - - - - ($,000) - - - CNPA Total CNPA Costs - WSD Pre-2014 $ - 2014 $ 7,349 2015 $ - 2016 $ - 2017 $ - $ 2018 - $ TOTAL 7,349 $ $ $ $ $ $ - $ 7,349 REVENUES Phoenix - 7,349 FY 2014-2018 42 Five – Year Operating Forecast and Capital Program METRO - - - May 2013 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, the 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 the Superstition Springs 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 2014-2018 43 Five – Year Operating Forecast and Capital Program METRO May 2013 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 $199.0 million. CNPA costs related to the project total $2.6 million. - - - - - - - ($,000) - - - - Pre-2014 2014 2015 $ 2,590 54,580 2,134 $59,304 $ 1,175 55,740 2,381 $59,296 $ 710 20,751 1,226 $ 22,687 $ - $ - Total Capital Costs $ 3,661 51,596 2,466 $57,723 $ - $ - CAPITAL REVENUES FTA Section 5309 CMAQ Total Federal $16,629 22,856 39,485 $22,520 10,100 32,620 $26,809 10,000 36,809 $ 9,042 9,880 18,922 $ - $ - $ 75,000 52,836 127,836 $18,238 18,238 $26,684 26,684 $22,487 22,487 $ 3,765 3,765 $ - $ - $ 71,174 71,174 $57,723 $59,304 $59,296 $ 22,687 $ - $ - $ 199,010 Central Mesa Extension CAPITAL COSTS NPR Utilities Project Costs Financing Costs PTF Revenue Total Local Total Capital Revenue 2016 2017 2018 TOTAL $ 8,136 182,667 8,207 $ 199,010 Concurrent Non-Project Activities Related to Central Mesa: - - - - - - - ($,000) - - - - - CNPA Total CNPA Costs Pre-2014 $ - 2014 $ 2,581 2015 $ - 2016 $ - 2017 $ - $ 2018 - $ 2,581 $ $ $ $ - TOTAL $ 2,581 REVENUES Mesa $ - - FY 2014-2018 44 Five – Year Operating Forecast and Capital Program METRO - - $ 2,581 May 2013 Tempe Streetcar Project -- The Tempe Streetcar project is located on Mill and Ash Avenue in downtown Tempe, with potential alignments currently under consideration extending along Apache Blvd. and/or Rio Salado Parkway. The Tempe Streetcar will run in a one-way loop between Rio Salado Parkway and University Drive, going north on Mill Avenue and south on Ash Avenue. It will continue to travel east/west on Apache Blvd. and/or Rio Salado Pkwy., which are currently being further defined. A concurrent planning study may also be initiated in FY 2014, pending funding availability, to extend modern streetcar further east/west along Rio Salado Pkwy. The Tempe Streetcar will operate weekday trains at approximately 10 to 12 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. This extension is part of the Regional Transportation Plan and funded by Proposition 400 regional sales tax and federal grants. Project Development for the Tempe Streetcar project is scheduled to continue in FY 2014. Pending FTA Small Starts approval, construction could be complete in FY18. FY 2014-2018 45 Five – Year Operating Forecast and Capital Program METRO May 2013 Tempe Streetcar Sources and Uses of Funds: The total capital cost of the Tempe Streetcar project is budgeted to be approximately $134.5 million, excluding financing costs. - - - - - - ($,000) - - - Tempe South Extension CAPITAL COSTS NPR Utilities Project Costs Financing Costs Total Capital Costs CAPITAL REVENUES FTA Section 5309 CMAQ Total Federal PTF Revenue Total Local Total Capital Revenue Pre-2014 2014 2015 2016 $ 1,009 4,046 $ 5,055 $ 3,376 18,049 $ 21,425 $ 3,921 32,948 $ 36,869 $ 42,597 $ 42,597 $ 28,554 $ 28,554 $ $ - $ - $ $ 6,695 6,428 13,123 $ 11,522 11,061 22,583 $ 23,000 8,566 31,566 $ 14,783 2,808 17,591 $ - 3,237 3,237 56,000 32,100 88,100 $ - $ 1,818 1,818 $ 8,302 8,302 $ 14,286 14,286 $ 11,031 11,031 $ 10,963 10,963 $ 46,400 46,400 $ - $ 5,055 $ 21,425 $ 36,869 $ 42,597 $ 28,554 $ 134,500 $ 2017 2018 TOTAL 8,306 126,194 $ 134,500 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 evaluated 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 2012, MAG Regional Council approved the recommendation for Light Rail as the preferred mode on the route shown on the map below. 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). Environmental evaluation phase in compliance with the National Environmental Policy Act is anticipated to begin in 2013. Concurrent with the environmental analysis, METRO will generate detailed engineering designs of the selected alignment and station layouts. FY 2014-2018 46 Five – Year Operating Forecast and Capital Program METRO May 2013 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 2015 to FY 2018 period is budgeted to be approximately $118.9 million, excluding financing costs. - - - - - - ($,000) - - - Phoenix West Extension CAPITAL COSTS NPR Utilities Project Costs Financing Costs Total Capital Costs CAPITAL REVENUES FTA Section 5309 CMAQ Total Federal PTF Revenue Total Local Total Capital Revenue Pre-2014 2014 2015 $ - $ - $ 2,023 $ - $ - $ 2,023 $ - $ - $ $ - $ $ - $ 2016 8,320 $ 2018 TOTAL 41,412 $ 10,670 56,449 $ $ 8,320 $ 41,412 $ 67,119 $ 118,874 1,000 1,000 $ 2,285 3,000 5,285 $ 10,269 16,700 26,969 $ 23,122 16,700 39,822 $ 35,676 37,400 73,076 - $ 1,023 1,023 $ 3,035 3,035 $ 14,443 14,443 $ 27,297 27,297 $ 45,798 45,798 - $ 2,023 $ 8,320 $ 41,412 $ 67,119 $ 118,874 FY 2014-2018 47 Five – Year Operating Forecast and Capital Program METRO $ 2017 10,670 108,204 May 2013 Gilbert Road LRT Extension -- The Gilbert Road LRT Extension will improve mobility and provide additional capacity in the Main Street corridor in Mesa. In addition, the project will connect the 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 and Arizona State University. 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 Superstition Springs Mall. In 2009, Valley Metro, the Mesa City Council and the Maricopa Association of Governments (MAG) approved extending light rail for 3.1 miles along Main Street from the current end-ofline station at Sycamore to Mesa Drive. This extension, known as the Central Mesa Extension is currently in construction and is scheduled for operation in late 2015. As part of the 2009 recommendations, a 1.9-mile extension on Main Street east to Gilbert Road was included as a future project. This segment, the Gilbert Road Extension, was recommended because of strong transit ridership, opportunities to optimize regional transportation connections, and an optimal location for an end-of-line park-and-ride. Valley Metro and the City of Mesa began a study of the potential Gilbert Road Extension in 2011 and completed it in summer 2012. This planning study identified and evaluated various alternatives, on where and how light rail could be placed in this 1.9-mile segment of Main Street. Valley Metro and the City of Mesa have entered the next phase of the planning process, the Environmental Assessment (EA), which was introduced to the public in September. In this phase, alternatives were analyzed in more detail and defined potential station locations and a park-and-ride facility. Design for the Gilbert Road LRT Extension will begin in FY 2014. The schedule to commence passenger operations is still to be determined. For the purpose of forecasting, the line opening is anticipated in the second half of calendar year 2018. FY 2014-2018 48 Five – Year Operating Forecast and Capital Program METRO May 2013 Gilbert Road LRT Extension Alignment Gilbert Road Extension Sources and Uses of Funds: The total capital cost of the Gilbert Road Extension project over the FY 2014 to FY 2018 period is budgeted to be approximately $149.5 million, excluding financing costs and Operations and Maintenance Center contingency costs. Gilbert Rd Extension Pre-2014 CAPITAL COSTS NPR Utilities Project Costs $ Total Capital Costs $ CAPITAL REVENUES City of Mesa CMAQ Flex Total Federal Total Capital Revenue 2014 2015 2016 2017 2018 TOTAL - $ 4,177 $ 4,177 $ 1,915 37,455 $39,370 $ 2,845 40,885 $ 43,730 $ 1,983 38,255 $ 40,238 $ 1,190 20,824 $ 22,014 $ $ - $ 4,177 4,177 $ 2,362 37,008 39,370 $ 2,624 41,106 43,730 $ 2,414 37,824 40,238 $ $ $ - $ 4,177 $39,370 $ 43,730 $ 40,238 $ 22,014 FY 2014-2018 49 Five – Year Operating Forecast and Capital Program METRO 1,321 20,693 22,014 7,933 141,596 $ 149,529 12,898 136,631 149,529 $ 149,529 May 2013 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 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 Proposed 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. During FY 2014 METRO will overhaul LRV brake systems, purchase a platform truck for rail operations, and perform station enhancements. Non-Revenue fleet vehicles used for Maintenance crews will be replaced as necessary. Beginning in FY16 and continuing into FY18, major light rail vehicle components such as the pantographs, gears, traction motors, couplers, and motor and center trucks will be scheduled for overhaul. Systemwide Improvements Sources and Uses of Funds: The total capital cost of the Systemwide Improvements plan through FY 2018 is budgeted to be approximately $42.1 million, excluding financing costs. - - - - - - ($,000) - - - Systemwide Improvements CAPITAL COSTS LRV Door Modifications OMC Solar 14 Light Rail Vehicles Interest All Other LRV Capital PM Total Capital Costs CAPITAL REVENUES Federal 5337 SOGR TIGGER CMAQ Total Federal Pre-2014 $ $ $ $ $ 578 578 $ 2,064 3,620 15,897 1,224 852 21,593 2015 $ $ $ 2016 - 397 710 1,107 $ 678 283 49 476 1,486 Phoenix Tempe Mesa PTF Revenue Total Local Total Capital Revenue 1,010 1,054 2,064 2014 2,715 2,715 325 325 (12,186) 31,064 18,878 782 782 21,593 $ 1,107 FY 2014-2018 50 Five – Year Operating Forecast and Capital Program METRO $ $ $ 2017 - 6,576 6,576 328 328 $ $ $ 6,248 6,248 $ 6,576 2018 - 605 6,388 6,993 330 330 $ $ $ 6,663 6,663 $ 6,993 TOTAL - 667 3,096 3,763 3,763 3,763 $ $ $ $ 3,763 1,010 3,620 15,897 3,947 17,622 42,096 4,746 2,715 578 8,039 (11,508) 283 49 45,233 34,057 $ 42,096 May 2013 Valley Metro FY14 and 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. Following is the level of effort stated in Full-Time Equivalent employees (FTE) relating to the projects schedule listed on page 40. Authorization of positions by the METRO Board is executed by adoption of the Annual Budget. Valley Metro Five-Year Staffing Forecast Full Time Equivalent Position (FTE) Funding by Project Regional Public Transportation Authority Staffing Forecast Projects Operations: Transit Service Operations Administrative Regional Services Planning Business Services Capital Projects: BRT Improvements Total Full Time Equivalent Staff FY14 11.75 31.65 68.05 8.05 7.25 FY15 12.50 31.65 67.75 8.75 7.25 FY16 12.50 31.60 67.75 8.85 7.25 FY17 12.50 31.60 67.65 9.80 7.25 FY18 12.50 31.60 67.65 9.95 7.25 0.29 0.30 0.43 0.43 0.43 127.04 128.20 128.38 129.23 129.38 METRO Staffing Forecast Projects Operations: Revenue Operations Agency Operations Agency Overhead Capital Projects: Northwest Extension Central Mesa Tempe Streetcar Phoenix West Gilbert Road Non Prior Rights Utility Relocation Systemwide Improvements Future Project Development: Capital Project Development Admin Systems Studies General Agency Support - Project Dev Phoenix West Glendale South Central FY14 FY15 FY16 FY17 FY18 112.50 3.05 9.25 112.91 3.05 9.20 126.57 3.05 9.30 127.15 3.05 9.35 127.18 3.05 9.35 6.62 5.95 2.99 2.58 0.36 1.04 7.10 5.97 3.39 2.09 3.88 0.37 1.04 5.77 4.66 3.87 3.60 3.66 0.37 0.99 1.92 2.79 3.27 5.52 5.21 0.42 0.99 1.42 1.81 3.27 6.47 5.57 0.42 0.99 5.50 1.08 7.60 1.79 0.33 0.33 6.05 1.08 8.92 0.43 0.33 6.05 1.13 9.02 0.08 0.50 6.17 1.23 7.97 1.33 1.40 6.11 1.23 8.27 1.33 1.15 Total Full Time Equivalent Staff 160.96 165.80 178.62 177.77 177.62 Combined Agency Total 288.00 294.00 307.00 307.00 307.00 FY 2014-2018 51 Five – Year Operating Forecast and Capital Program METRO May 2013 Valley Metro Regional Public Transportation Authority FY2014 Adopted FTE Count by Pay Grades and Ranges FTE Effort Pay Grade Position Title Adopted Pay Range RPTA VMR Total FTE I Cleaner $22,377 - $33,565 0.0 10.0 10 II Transit Distribution Assistant $24,863 - $37,294 0.5 0.5 1 III Administrative Support Assistant Customer Service Representative Document Control Clerk LRV Yard Operator Stockroom Clerk $27,626 - $41,439 0.5 40.0 0.1 0.0 0.0 0.5 0.0 1.9 2.0 2.0 1 40 2 2 2 IV Accounting Technician Administrative Assistant Customer Service Application Technician Lead Customer Service Representative Lead Document Control Clerk LRV Inspector Materials Handler Performance Analyst $30,696 - $46,043 3.0 5.7 1.0 5.0 0.1 0.0 0.0 1.0 0.0 6.4 0.0 0.0 0.9 9.0 1.0 0.0 3 12 1 5 1 9 1 1 V Human Resources Technician $33,766 - $50,648 1.0 0.0 1 VI LRV Maintenance Technician I Paralegal Track Maintainer $37,142 - $55,712 0.0 0.5 0.0 11.0 0.5 6.0 11 1 6 VII Accountant I Contracts Specialist Executive Assistant Help Desk Support Specialist LRV Maintenance Technician II Planner I Procurement Specialist Program Representative Signal/Comm Sys Maintainer Utility Relocation Specialist Vehicle Parts Coordinator $40,856 - $61,284 2.1 0.2 0.3 1.5 0.0 0.3 0.8 7.0 0.0 0.0 0.0 0.9 0.8 1.7 1.5 10.0 0.8 0.2 0.0 6.0 1.0 1.0 3 1 2 3 10 1 1 7 6 1 1 VIII Bus/Para Fleet/Facilities Coordinator Customer Service Supervisor Engineering Technician Executive Administrative Coord Graphics Designer LRV Lead Maintenance Technician Materials/Warranty Coordinator Signal/Comm Sys Technician Traction Power Sys Tech $44,942 - $67,413 1.0 5.0 0.0 1.0 2.6 0.0 0.0 0.0 0.0 0.0 0.0 1.0 1.0 1.4 3.0 2.0 9.0 13.0 1 5 1 2 4 3 2 9 13 FY 2014-2018 52 Five – Year Operating Forecast and Capital Program METRO May 2013 Valley Metro Regional Public Transportation Authority FY2014 Adopted FTE Count by Pay Grades and Ranges FTE Effort Pay Grade Position Title Adopted Pay Range IX Accountant II Bike Pedestrian Coordinator Budget Analyst Contracts Administrator Data Analyst Human Resources Generalist LRV Maintenance Supervisor Management Analyst Network Support Analyst Planner II Program Coordinator Public Information Specialist Safety Specialist Security Coordinator Van Pool Coordinator Web Developer $49,435 - X Senior Contract Administrator Bus/Paratransit Fleet/Facilities Supervisor Maintenance of Way Supervisor Network Systems Engineer Program Control Specialist Program Supervisor Senior Contracts Administrator $54,380 XI GIS Administrator Employee Relations Administrator Planner III Project Manager Public Arts Administrator Quality Assurance Administrator Senior Construction Project Coordinator Senior Management Analyst Senior Service Planner XII Mgr Human Resources Support Services Marketing Manager Assistant Superintendent Budget and Operations Financial Controls Manager Transportation Demand Manager Communications Manager Community Relations Manager Customer Service Manager General Accounting Manager Lead Procurement Officer LRT Systems Manager Program Manager, Safety, Training Track & Facilities Manager Utility Manager FY 2014-2018 53 Five – Year Operating Forecast and Capital Program METRO Total FTE RPTA VMR $74,154 3.0 1.0 1.0 0.8 1.0 2.0 0.0 1.0 0.0 1.0 5.8 0.5 0.4 0.4 1.0 2.0 0.0 0.0 1.0 0.2 0.0 0.0 3.0 0.0 1.0 2.1 5.2 0.5 0.6 0.6 0.0 0.0 3 1 2 1 1 2 3 1 1 3 11 1 1 1 1 2 - $81,569 0.5 1.0 0.1 0.2 0.0 2.0 0.2 0.5 0.0 3.0 1.8 1.0 0.0 1.8 1 1 3 2 1 2 2 $59,818 - $89,726 0.5 1.0 1.1 1.5 0.0 0.0 0.0 0.8 1.0 0.5 0.0 1.0 1.5 1.0 1.0 1.0 0.3 0.0 1 1 2 3 1 1 1 1 1 $65,799 - $98,698 1.0 0.5 0.0 0.5 1.0 0.5 0.3 1.0 1.0 0.8 0.1 0.0 0.0 0.0 0.0 0.5 1.0 0.5 0.0 0.5 0.7 0.0 0.0 1.2 1.0 1.0 1.0 1.0 1 1 1 1 1 1 1 1 1 2 1 1 1 1 May 2013 Valley Metro Regional Public Transportation Authority FY2014 Adopted FTE Count by Pay Grades and Ranges FTE Effort Pay Grade Position Title Adopted Pay Range RPTA VMR Total FTE XIII Corridor & Facility Development Manager Financial Reporting Manager Information Technology Manager Project Controls Manager Quality Assurance Manager Senior Project Engineer Resident Engineer System & Service Development Manager $72,379 - $108,568 0.2 0.6 0.5 0.0 0.0 0.1 0.0 0.6 0.9 0.4 0.5 1.0 1.0 1.0 1.0 0.4 1 1 1 1 1 1 1 1 XIV Chief Human Resources Officer Chief Maintenance Engineer Chief, Rail Safety, & Security Construction & Utilities Manager Contractors and Procurement Manager Design Manager Government Relations Officer Manager, Start Up & Activation Revenue Generation & Financial Planning Manager Superintendent LRV Maintenance $81,992 - $122,987 1.0 0.0 0.4 0.1 0.5 0.0 0.5 0.0 0.8 0.0 0.0 1.0 0.6 0.9 0.5 1.0 0.5 1.0 0.3 1.0 1 1 1 1 1 1 1 1 1 1 XV Bus Services Delivery Manager Chief Financial Officer Chief of Staff Communication & Marketing Dir Director, Administration & Organizational Development $100,202 - $150,304 1.0 0.5 0.5 0.5 0.5 0.0 0.5 0.5 0.5 0.5 1 1 1 1 1 XVI Chief Engineer Chief Transportation Officer Director, Planning & Develop $112,627 - $168,941 0.0 0.4 0.1 1.0 0.6 0.9 1 1 1 GC Rail General Counsel $117,246 - $175,870 0.5 0.5 1 ED Chief Executive Officer 0.5 0.5 1 Salary Negotiated FY14 FTE's 127 161 288 FY13 FTE's 120 153 273 7 8 15 Change FY 2014-2018 54 Five – Year Operating Forecast and Capital Program METRO May 2013 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 2014-2018 55 Five – Year Operating Forecast and Capital Program METRO May 2013 Budget Timelines: The FY 2014 process is outlined below, with Proposed planning beginning in February and with budget adoption scheduled for May 2013. Major phases of this process are outlined below:           Oct 31, 2012 -- Proposed Rail Operating Budget to City Staff Jan 24th -- Draft budget for Director review Feb 19th -- Draft Budget to Financial Working Groups and RTAG for review. March 6th -- Draft Budget delivered to RMC, TMC March 7th -- Draft Budget delivered to BFS March 13th -- Comments due to Budget Group April 3rd -- Budget presented for Information to RMC, TMC April 18th -- Budget presented to Board of Directors for information May 1st -- Management Committees approvals May 16th -- Board Meeting – Budget Adopted by Board Budget Group Sept Oct Directors Prepare Rail Proposed Ops Budget Respond to Questions and Issues Raised Provide Input and Direction Jan Compile Budget Information and Prepare Draft Budget Respond to Questions and Issues Raised and Provide Direction 19 thru Mar th 13 th Board of Directors Prepare Templates Oct - Dec Feb Advisory Groups Respond to Questions and Issues Raised Mar 13 – Mar th 29 Compile Revisions and Prepare Budget April Respond to Questions and Issues Raised st May 1 thru th May 15 May Board Meeting FY 2014-2018 56 Five – Year Operating Forecast and Capital Program METRO Review Draft Budget Package and Provide Feedback to METRO Budget Group Review Budget Approve Budget for Submission to the Board Review Budget Formally Adopted May 2013 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 2014-2018 57 Five – Year Operating Forecast and Capital Program METRO May 2013 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 2014-2018 58 Five – Year Operating Forecast and Capital Program METRO May 2013 101 North First Avenue | Suite 1300 | Phoenix, AZ 85003 | valleymetro.org