Valley Metro Rail, Inc. Adopted Operating and Capital Budget FY 2016 Adopted Five Year Operating Forecast and Capital Program FY 2016 - 2020 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 2016 (July 1, 2015 through June 30, 2016) Five-Year Operating Forecast and Capital Program FY 2016 through FY 2020 (July 1, 2015 through June 30, 2020) Board of Directors Chair – Vice Mayor Dennis Kavanaugh, Mesa Vice Chair- Councilmember Thelda Williams, Phoenix Councilmember Rick Heumann, Chandler Mayor Jerry Weiers, Glendale Mayor Mark Mitchell, Tempe 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 Adrian Ruiz, Safety and Security Director Annual Budget Table of Contents Valley Metro Rail Organization ..................................................................................... 1 Valley Metro Rail Vision ................................................................................................ 2 FY 2015 Accomplishments ........................................................................................... 2 Rail Operations Service Plan ....................................................................................... 5 Total Financial Program ............................................................................................... 6 Budget Analysis ......................................................................................... 8 Organizational Staffing .............................................................................................. 10 FY 2016 Budgets: Operating Budget Revenue Operations Budget.................................................................... 12 Future Project Development Budget ........................................................ 13 Agency Operating Budget ........................................................................ 14 Agency Overhead Allocation.................................................................... 15 Capital Budget Northwest Extension Phase I Budget ...................................................... 16 Central Mesa LRT Extension Budget ....................................................... 17 Gilbert Road Extension Budget ................................................................ 18 Tempe Streetcar Capital Project Budget.................................................. 19 Capitol / I-10 West Project Budget ........................................................... 20 Non-Prior Rights Utilities Relocation Budget............................................ 20 Systemwide Improvements ...................................................................... 21 Funds Flow FY 2016 .................................................................................................... 22 5 Year Plan Table of Contents 1. Executive Summary Valley Metro Rail Services .................................................................................. 24  Operations & Maintenance ...................................................................... 25  Planning & Development ........................................................................ 25  Design & Construction ............................................................................ 25 Five-Year Plan Summary ................................................................................... 27 2. Five-Year Operating Forecast Uses & Sources of Funds ................................................................................... 30 Operations & Maintenance Cost Estimate FY 2016 - 2020 ................................ 33 Five Year Fares, Costs and Member City Funding ............................................. 35 Project Development Planning ........................................................................... 36 3. Five-Year Capital Program All Projects.......................................................................................................... 37 High Capacity Transit Projects ........................................................................... 40 Northwest Extension ........................................................................................... 41 Central Mesa Extension ..................................................................................... 43 Tempe Streetcar ................................................................................................. 45 Capitol I-10 West Extension ............................................................................... 47 Gilbert Road Extension ....................................................................................... 48 Systemwide Improvements................................................................................. 50 Five-Year Staffing Plan ....................................................................................... 51 4. Appendix A-The Budget Process ....................................................................................... 58 B-Glossary of Terms and Acronyms ................................................................... 60 VALLEY METRO RAIL ORGANIZATION Valley Metro Rail, Inc. (VMR) is a public non-profit corporation whose members are the cities of Chandler, Glendale, Mesa, Phoenix, and Tempe. VMR 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 VMR 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 VMR Staff includes employees managing operations, performing maintenance, directing planning, design and construction of new rail lines. VMR 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 VMR and the relationships to key stakeholders. Valley Metro Rail Organization VMR Board of Directors RPTA Board of Directors Budget and Finance Subcommittee (BFS) RPTA and METRO Board Subcommittee Chief Executive Officer Rail Management Committee Transit Management Committee Regional Transit Advisory Group Regional Marketing Committee East Valley Dial-aRide Working Group Financial Working Group TOD Working Group Valley Metro Governance and Policy Structure Intergovernmental Representatives Service Planning Working Group Risk Management Committee Service Standards Working Group Standing Member Agency Staff Committees 1 Security Steering Committee Regional Fare Working Group Ad Hoc Member Agency Staff Committees VALLEY METRO VISION: Valley Metro is a leader in connecting communities and building a vibrant, sustainable region. MISSION: Valley Metro provides our customers with a safe, efficient and reliable total transit network. FY 2015 ACCOMPLISHMENTS  VMR ridership increased slightly, serving 14.3 million riders in CY 2014, .25% percent more than in CY 2013. RAIL Average Daily Boardings 50,000 43,760 40,000 33,935 30,000 24,746 20,000 10,000 0 Weekday 2010 Saturday 2011 2012 2 Sunday 2013 2014  Delivered passenger service achieving the following results: Benchmark On Time Performance Cost per Boarding Average Fare FY14 Target 95% $2.48 $0.96 FY14 Actual 93.5% $2.18 $0.87  In August 2014, a fare vending machine pedestal unveiling event was held at the Arizona State Veterans Home. With the lowering of 62 fare vending machines over the next three years, Valley Metro and the city of Phoenix are helping improve accessibility on the system. The adaptation was prompted by Phoenix Councilmember Kate Gallego after a local veteran in a mobility device asked her for assistance in purchasing a transit pass.  Valley Metro hosted the 27th annual Clean Air Campaign Awards honoring 25 individuals and organizations who have made special efforts to improve air quality in the Valley. Held in October at the JW Marriott Resort and Spa with 450 guests; emcee Sean McLaughlin and keynote Park Howell; Valley Metro Boards represented by CM Sherwood and CM Kavanaugh.  In October 2014, Valley Metro hosted the 27th annual Clean Air Campaign Awards honoring 25 individuals and organizations who have made special efforts to improve air quality in the Valley. The premier annual event was held at the JW Marriott Desert Ridge Resort and Spa.  For the second year in a row, Coors Light and Valley Metro teamed up to provide Phoenix-area residents and visitors with free transit service to ring in the New Year and celebrate the Tempe New Year’s Eve Block Party. With the support of Crescent Crown Distributing, Coors Light Free Rides were on Valley Metro bus and light rail beginning at 7 p.m. on Wednesday, December 31st through the end of regular service. Light rail carried 15,000 riders and bus boardings were at 7,727 riders.  During the week of January 25th – February 1st, 2015, ridership history was made serving Super Bowl XLIX events, Super Bowl Central and NFL Experience, in downtown Phoenix. On Wednesday through Saturday, ridership was higher than the previous top ridership day on December 7, 2013 at 65,800 boardings. On Saturday, January 31, light rail ridership nearly doubled with over 126,000. 3  In February 2015, Valley Metro and Open Door Fellowship Church hosted a “Love Our Community” event for the Northwest Extension of light rail to show Valentine’s Day appreciation for local businesses on 19th Avenue. This familyfriendly celebration was open to the public and showcased small businesses in the light rail construction zone as well as encouraged local shopping. 4 RAIL OPERATIONS SERVICE PLAN Service Frequency FY 2016 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 major changes are expected from FY15. 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 Ten weekdays are currently scheduled for holiday schedule frequency (Sunday schedule). Ridership and Fare Revenue: Total Ridership is forecasted at 15.6 million passengers for the year with fare revenues generating $13.6 million. This includes an increase of an estimated 1.2 million rides due to the Central Mesa Extension planned opening in revenue service beginning October 2015. Over the course of the fiscal year 2016, average weekday boardings are forecasted at 47,358 while Saturday and Sunday average ridership are forecasted at 38,055 and 26,963 per day respectively. Annual Ridership/Fares Fare Assumption 11,934,102 $ 0.88 $ 10,450,970 1,978,860 $ 0.88 $ 1,732,934 1,644,751 $ 0.88 $ 1,440,347 15,557,714 $ 13,624,251 Total Rides Average Weekday 47,358 Saturday 38,055 Sunday 26,963 Total Ridership and Fare Revenue Average fare per ride is forecasted at $0.88 cents per ride. The FY 2016 ridership forecast is 9.4% higher than the FY 2015 plan due to increased ridership projected with the Central Mesa Extension opening. 5 TOTAL FINANCIAL PROGRAM The FY 2016 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 $232.2 million (*) for the amended FY 2015 Budget. Total uses of funds including debt service for FY16 are estimated to be $162.8 million. Uses of Funds - The FY 2016 Budget includes anticipated operating and capital expenditures in the amount of approximately $143.4 million to support program elements during the period of July 1, 2015 through June 30, 2016, as follows: Uses of Funds ($,000) FY16 Adopted Operating Activities: Revenue Operations Future Project Development Agency Operating Budget FY15 Amended Change Budget Analysis Note # 37,654 10,741 909 49,304 32,156 8,444 928 41,528 5,498 2,297 (19) 7,776 1 2 Capital Projects: Northwest Extension Central Mesa Extension Gilbert Road Capital Project Tempe Streetcar Extension Capitol/I-10 West Capital Project Non-Prior Rights Utilities Relocations CNPAs - Northwest Extension CNPAs - Mesa Extension Systemwide Improvements 44,272 19,373 9,306 6,631 6,000 2,830 5,720 75,493 58,448 5,388 5,257 415 13,755 4,011 2,045 6,480 (31,221) (39,075) 3,918 1,374 5,585 (10,925) (4,011) (2,045) (760) 3 4 5 6 7 8 3 4 9 Subtotal Capital before Debt Service 94,132 171,292 (77,160) 143,436 212,820 (69,384) 7,742 11,618 19,360 8,120 11,241 19,361 (378) 377 (1) 162,796 232,181 (69,385) Total Uses of Funds Capital Project Debt Service: Debt Service - Interest Debt Service - Principal Total Uses with Debt Service Note: See pages 8 and 9 for budget analysis notes. (*) In FY15, the agency changed its budgetary reporting of Debt Service. Any Debt Service related to PTF bonds are reported on the VM RPTA CAFR and budget documents. Obligations of VM RPTA and VMR related to debt service are reported on a memorandum basis in this and future rail budgets. 6 Sources of Funds - The FY 2016 Operating and Capital Budget will be funded with a combination of Fare Revenues, Member City contributions, Public Transportation Funds, Federal 5307 Fixed Guideway Preventative Maintenance, Congestion Mitigation and Air Quality funds (CMAQ), and other local funding. The FY 2016 Budget includes anticipated capital and operating sources of funds in the amount of approximately $143.4 million (*), as follows: Sources of Funds ($,000) FY16 Adopted Operating Activities: Fare Revenue Advertising Revenue Federal 5307 PM Federal 5339 AA FTA - TOD Grant Federal CMAQ Member Cities MAG / RPTA (RARF) PTF Sales Tax Revenue 12,437 1,257 2,147 13 17,247 1,000 7,428 41,528 1,187 (382) (1,004) (13) 154 1,771 7,429 (1,368) 7,776 10 11 12 3,846 26,356 341 5,352 254 25,000 32,984 94,132 28,168 29,321 340 3,257 2,555 6,291 53,190 48,171 171,292 (24,322) (2,965) 1 2,095 (2,555) (6,037) (28,190) (15,186) (77,160) 16 17 143,436 212,820 (69,384) 19,360 19,360 19,361 19,361 (1) (1) 162,796 232,181 (69,385) Capital Project Debt Service: PTF Sales Tax Revenue Total Sources with Debt Service Change 13,624 876 1,143 154 1,771 24,676 1,000 6,060 49,304 Capital Projects: FTA - Section 5309 Federal CMAQ Federal 5337 SOGR TPAN TIGGER Federal Grant Member Cities PTF Bond Revenue PTF Sales Tax Revenue Total Sources of Funds FY15 Amended Budget Analysis Note # 13 14 15 18 19 20 21 22 Note: See pages 8 and 9 for budget analysis notes. (*) In FY15, the agency changed budgetary reporting of Debt Service. Any Debt Service related to PTF bonds are reported on the VM RPTA CAFR and budget documents. Obligations of VM RPTA and VMR related to debt service are reported on a memorandum basis in this and future rail budgets. 7 BUDGET ANALYSIS The following is an analysis of the major changes in the FY 2016 Adopted Budget versus the FY 2015 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 6 and 7. Budget Analysis - Uses of Funds 1 FY 16 rail operating costs increase by 17% over FY15 levels. Base service levels will increase in October with the commencement of operations of the Central Mesa Extension, an additional 3.1 miles. Preventative maintenance activities continue to increase as the system components mature. Safety & Security level of effort and operating contingency are increasing over FY15. 2 Project Development costs are up by $2.3 million due to increases in planning activities related to future corridors and system planning. 3 Northwest Extension Phase I base project costs down $31.2M due to construction being in the final year prior to the forecast revenue start date of July 1, 2016. Overall project costs are not changed. CNPA work has concluded. Central Mesa Extension base project costs down $39.1M and the forecast revenue start date is October 1, 2015. Overall project costs are not changed. CNPA work has concluded. 4 5 Gilbert Road LRT Extension project moves into Design, Pre-construction activities, and ROW acquisition. Annual expenditures forecasted at $9.3M. 6 Tempe Streetcar design and pre-construction activities commence, pending federal grant approval. Annual expenditures forecasted at $6.6M. 7 Capitol/I-10 West Capital Project continues with project development and preliminary engineering activities. Capital costs are forecasted at $6.0M. 8 Non-Prior rights utilities relocation activity is complete for both the Northwest and Central Mesa Extensions. FY16 amounts include Tempe Streetcar ($2.3M) and Gilbert Road Extension ($.5M). 9 Systemwide Improvements include IT systems life cycle replacements $.6M, FCS Development $.3M, Rail station signage improvements $.4M, Kiosk at OMC $.1M, Maintenance Platform truck $.4M, Non revenue vehicles $.1M, Power Switch upgrade $.2M, LRV overhauls $1.8M , OMC backup generator $.5M, security camera replacements $.9M, Communication cabinet AC replacements $.2M. 8 Note Budget Analysis - Sources of Funds 10 Fare revenue increases from $12.4M to $13.6M; assumes 14.4 million rides for the original 20 mile alignment and an additional 1.2 million rides for 9 months of Central Mesa Extension rides. Average fare is forecasted to be $0.88 per ride in FY16. 11 Advertising revenue down by $0.4M in FY16 from the extraordinary level in FY15 generated by the 2015 Super Bowl. 12 Federal 5307 Preventive Maintenance Funding forecasted to be $1.1M, returning to normal levels. In FY14 and FY15, an unusually large amount of Federal PM funding became available after the 2012 CMAQ close-out process. 13 Federal CMAQ Operating funds are increased to $1.8M to fund the environmental assessment for Capitol/I-10 West ($.3M) and the Tempe Streetcar environmental assessment ($1.3M). 14 Member City contributions for Operations are up from $17.2M to $24.7M in FY16 due to a base increase of $2.0M to maintain a state of good repair, addition of 3 miles rail operations ($2.5M net of fares), $1.0M less in Federal 5307 PM, and an additional $1.8M of future project development activities (Fiesta/Downtown Chandler Transit Corridor Study ($250,000) to be funded by Chandler, South Central to be funded by Phoenix ($1.6M). 15 PTF Sales Tax revenue funding requirements for project development are down $1.4M. 16 Federal 5309 funds are reduced from $28.2M to $3.8M due to forecasted reductions in grant draws required for the Central Mesa Extension project during the coming year. Overall the CME project 5309 funding remains at $75.0M. 17 Federal CMAQ Capital funds are decreased from $29.3M to $26.4M primarily due to decreasing construction funding requirements for the Central Mesa Extension. 18 The Gilbert Road Extension Light Rail Project is to be funded using Transportation Project Advancement Notes (TPANS) with a combination of federal and City of Mesa funds. The anticipated TPAN expenditures in FY16 are $5.4M as the project moves into Design, Preconstruction activities, and ROW acquisition. 19 No TIGGER funds in FY16. OMC Solar project to be completed in FY15. 20 Member City contributions are down from $6.3M in FY15 to $.3M in FY 16 due to reductions in City of Phoenix contributions required for the Northwest Extension Phase I CNPA ($4.0M) and City of Mesa contributions required for the Central Mesa Extension CNPA ($2.0M). CNPA work for these two extensions is scheduled to be completed in FY15. 21 PTF Bonds funding will be reduced from $53.2M to $25.0M due to Central Mesa Extension and Northwest Extension activities winding down. In FY16, $3.6M will be used to fund the final year of Central Mesa LRT Extension construction and $21.4M to continue construction on Northwest Extension. 22 PTF Sales Tax funding will be reduced from $48.2M to $33.0M primarily due to Northwest Extension construction activities winding down. In FY16, PTF Sales Tax to fund $22.8M of Northwest Extension construction, $1.3M of Tempe Streetcar Pre-construction activities, $1.2 Capitol I-10 West Pre-construction activities, $2.3M of Non Prior Rights Utilities relocations, and $5.4M Systemwide Improvements. 9 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. Salary and overhead charges to bus and rail projects are based on actual time worked on each project. For FY 16 there are 312 employees budgeted in the integrated agency, with 129 FTE’s budgeted to RPTA activities and 183 budgeted to VMR activities. Compensation and fringe benefit assumptions for FY 16 include:  Compensation budget based on 3.0% increase. For staff salary changes, merit increases are evaluated based on employee performance; division level control to manage total costs within budget.  The Arizona State Retirement System (ASRS) contribution will decrease 0.13 percent on July 1, 2015.  Agency health care costs will increase. Program design is anticipated to hold total agency fringe benefit cost increases to within 3% of FY 15 levels.  All VMR staff related costs are reimbursed in full by Valley Metro Rail, Inc. Staffing cost analysis FTE $ million FY 16 FY 15 change pct change 312 296 16 5% Salaries 18.8 17.8 1.0 5% 7.5 7.1 0.4 6% 26.3 24.9 1.4 6% Fringe Benefits Total Salary and Fringe Benefits Analysis of changes Salary Fringe Total Base Compensation FY15 Base increase New Positions 17.8 0.5 0.5 7.1 0.2 0.2 24.9 0.7 0.7 New Base Compensation FY16 18.8 7.5 26.3 FY16 Adopted Budget vs. FY15 Adopted Budget 1.4 The FTE Count by Pay Grades and Ranges can be found on Page 54. Valley Metro completed a comprehensive survey of positions and pay grades with regional governmental agencies as well as transit peer cities located in the Western US. Pay grades are increasing by 2% in response to inflation trends which have occurred since last changes to pay grades made effective in July of 2007. 10 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 2016 – FY 2020 Five-Year Operating and Capital Program (page 23) will be completed and submitted to the Board of Directors for approval along with the FY 2016 Operating and Capital Budget. 11 FY16 Adopted METRO Revenue Operations Budget FY16 Adopted Budget Sources of Funds Mesa Fare Revenue Phoenix Fare Revenue Tempe Fare Revenue Federal 5307 PM 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 $ $ $ $ FY15 Amended Budget 1,987,604 8,207,195 3,429,453 1,142,800 111,013 572,943 191,544 3,180,526 13,247,745 5,513,879 69,680 37,654,381 $ 9,090,694 917,699 9,690,024 3,604,472 2,635,243 1,617,214 2,130,325 822,013 1,507,882 2,905,297 192,500 1,821,400 500,000 219,618 37,654,381 $ 20,591,797 2,124,504 22,716,301 (9,468,557) 13,247,745 $ $ $ Amount Increase/ (Decrease) 1,098,644 7,758,265 3,580,018 2,146,533 61,467 843,196 352,337 280,749 11,163,967 4,326,812 71,609 472,798 32,156,396 $ 7,907,057 717,602 9,078,300 2,930,305 2,301,513 1,200,872 1,918,401 500,000 1,379,606 2,228,354 282,268 1,400,000 125,000 187,118 32,156,396 $ 19,545,690 1,659,632 21,205,323 (10,041,355) 11,163,968 $ $ $ 888,959 448,930 (150,566) (1,003,733) 49,546 (270,253) (160,793) 2,899,777 2,083,778 1,187,067 (71,609) (403,118) 5,497,985 1,183,637 200,097 611,724 674,167 333,730 416,342 211,924 322,013 128,276 676,943 (89,768) 421,400 375,000 32,500 5,497,985 Allocation of Operating Costs Phoenix Base Costs Regional Security $ 60.328% Less Fares,Advertising & Fed PM Distributed Phoenix Net Contribution $ Tempe Base Costs Regional Security Local Security $ 25.209% Less Fares,Advertising & Fed PM Distributed Tempe Net Contribution $ Mesa Base Costs Regional Security Local Security $ 14.463% Less Fares,Advertising & Fed PM Distributed Mesa Net Contribution $ Total Operating Costs $ 12 $ 8,534,793 887,744 69,680 9,492,217 (3,908,659) 5,583,559 $ 4,923,318 522,545 5,445,863 (2,265,336) 3,180,526 $ 37,654,381 $ 1,046,107 464,872 1,510,979 572,798 2,083,777 8,167,348 693,493 472,798 9,333,638 (4,534,029) 4,799,609 $ $ $ 1,424,842 120,984 71,609 1,617,435 (1,265,077) 352,358 $ 3,498,476 401,561 (71,609) 3,828,428 (1,000,259) 2,828,168 $ 32,156,396 $ 5,497,985 $ $ 367,446 194,251 (403,118) 158,579 625,370 783,950 FY16 Adopted Future Project Development Budget FY16 Adopted Budget Sources of Funds FTA - Section 5339 AA FTA - TOD Grant Chandler Phoenix Tempe MAG RPTA (RARF/Other) PTF Revenue Sales Tax CMAQ Expenditures Salaries and Fringe Benefits RPTA Overhead Business Assistance Consulting COP Liaison Consultants - PM/CM Consultants - Planning Support Consultants - Other Consultants - Planning/Environmental 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 $ 154,000 250,000 1,476,000 30,000 500,000 500,000 6,059,511 1,771,000 10,740,511 $ $ 2,718,710 257,776 25,000 145,000 92,000 4,055,000 725,250 1,000,000 7,500 56,500 61,500 30,000 26,600 5,000 6,400 22,300 5,000 1,500,975 10,740,511 $ FY15 Amended Budget $ 13,000 3,000 Amount Increase/ (Decrease) $ 500,000 500,000 7,427,752 $ 8,443,752 $ $ 2,246,955 192,187 125,000 75,000 2,445,000 123,797 1,700,000 1,000 31,250 31,000 18,000 21,500 2,700 24,900 5,000 1,400,463 8,443,752 $ $ $ (13,000) 154,000 250,000 1,473,000 30,000 (1,368,242) 1,771,000 2,296,758 471,755 65,589 25,000 20,000 17,000 1,610,000 601,453 (700,000) 6,500 25,250 30,500 12,000 5,100 5,000 3,700 (2,600) 100,512 2,296,758 * West Phoenix/Glendale Corridor Alternatives Analysis is anticipated to be funded with PTF ($649,000) * Capitol/I-10 West Environmental Assessment to be funded with PTF ($161,000) and CMAQ ($645,000) * Northeast Corridor feasibility study to be funded with by PTF ($305,000) * Tempe Streetcar EA/PE to be funded with PTF ($281,000) and CMAQ ($1.3M) * Northwest Phase II EA/ACE to be funded with PTF ($.9M) * South Central ($1.5M) to be funded by Phoenix * Fiesta/Downtown Chandler Transit Corridor Study ($250,000) to be funded by Chandler * TOD to be funded by FTA, PTF and Tempe ($184,000) 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. 13 FY16 Adopted Agency Operating Budget FY16 Adopted Budget Sources of Funds Chandler Glendale Mesa Phoenix Tempe Expenditures Salaries and Fringe Benefits RPTA Overhead Consultants - Other Conferences Business Travel Advertising Printing Public meetings & information Other direct expenditures LRT audit and accounting costs Agency Overhead Allocation $ $ $ $ FY15 Amended Budget 22,715 22,715 172,634 454,300 236,236 908,601 $ 369,458 33,371 124,500 16,850 45,200 250 2,000 63,049 18,850 37,080 197,993 908,601 $ $ $ Amount Increase/ (Decrease) 27,834 27,834 129,893 463,902 278,341 927,804 $ 358,567 28,635 130,000 12,825 33,200 250 1,500 64,317 53,850 36,000 208,660 927,804 $ $ $ (5,119) (5,119) 42,742 (9,602) (42,105) (19,203) 10,891 4,736 (5,500) 4,025 12,000 500 (1,268) (35,000) 1,080 (10,667) (19,203) Note: The Cities of Chandler and Glendale contribute $50,000 each annually to METRO. $22,715 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. Agency operating costs are general and administrative costs of Valley Metro Rail, Inc. which are not directly allocable to passenger operations or to capital projects. Typical expenses include agency memberships, public meetings, legislative representation, annual financial audit, and leadership management activities which address interactions with member cities and strategic policy making. 14 FY16 Adopted Agency Overhead Allocation FY16 Adopted Budget Allocation of Costs Agency Overhead Allocation: Revenue Operations Northwest Extension Central Mesa Tempe South Phoenix West Gilbert Road Agency Operating Future Projects NPR Utilities Systemwide Improvements Expenditures Salaries & Fringes RPTA Overhead Relocation Expenses Building Rent Building Rent Sublease IT Services and Consultants Equipment Leases Equipment Maintenance Office Supplies Telecommunication Services Employee Development Vehicle Related Other Office Expense Computer/Software/Equipment LRT project capital outlay $ 614,472 350,169 215,088 87,299 93,490 213,159 197,993 1,500,975 23,960 3,296,605 $ $ 1,125,718 107,530 1,529,196 (705,304) 290,750 42,704 106,302 77,784 188,250 25,000 28,750 419,325 60,600 3,296,605 $ 15 FY15 Amended Budget $ $ $ $ 610,604 346,944 300,864 190,238 113,372 255,963 208,660 1,400,463 25,728 62,299 3,515,134 1,068,792 92,568 5,000 1,481,538 (622,246) 179,120 45,181 24,576 65,832 36,701 273,550 12,250 24,800 827,472 3,515,134 Amount Increase/ (Decrease) $ $ $ $ 3,868 3,225 (85,776) (102,939) (19,882) (42,804) (10,667) 100,512 (1,768) (62,299) (218,529) 56,926 14,962 (5,000) 47,658 (83,058) 111,630 (2,477) (24,576) 40,470 41,083 (85,300) 12,750 3,950 419,325 (766,872) (218,529) FY16 Adopted Northwest Extension Phase I Budget FY16 Adopted Budget Sources of Funds PTF Revenue Bonds PTF Revenue Sales Tax 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 Construction Management Consultants - Engineering Consultants - Art Design Consultants - Other Consultants - Utility Relocation 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 $ $ $ $ FY15 Amended Budget 21,523,565 22,748,520 44,272,085 $ 680,899 65,040 5,000 3,474,135 30,000 28,352,534 8,049,518 362,500 319,707 340,000 150,000 1,783,249 10,000 5,000 2,000 165,000 30,200 2,800 94,334 350,169 44,272,085 $ $ $ Amount Increase/ (Decrease) 43,792,667 31,700,000 75,492,667 $ 590,095 51,108 25,000 2,162,507 54,000 50,000 57,181,225 4,000,000 900,000 441,373 394,640 3,400,000 150,000 5,420,311 120,000 1,000 30,400 8,185 8,000 62,468 29,200 3,511 62,700 346,944 75,492,667 $ $ $ (22,269,102) (8,951,480) (31,220,582) 90,804 13,932 (20,000) 1,311,628 (24,000) (50,000) (28,828,691) 4,049,518 (537,500) (121,666) (54,640) (3,400,000) (3,637,062) (120,000) (1,000) (20,400) (3,185) (6,000) 102,532 1,000 (711) 31,634 3,225 (31,220,582) FY16 Northwest Extension - Concurrent Non-Project Activities (CNPA) Budget FY16 Adopted Budget Sources of Funds Phoenix-WSD Expenditures Contractor - Design Build FY15 Amended Budget $ $ - $ $ - 16 Amount Increase/ (Decrease) - $ $ 4,011,480 4,011,480 $ $ (4,011,480) (4,011,480) - $ $ 4,011,480 4,011,480 $ $ (4,011,480) (4,011,480) FY16 Adopted Central Mesa HCT Capital Project FY16 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 Construction Management 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 Software licenses/Maintenance agreements LRT project office expense Local meetings & mileage Business Travel Vehicle Related Expense LRT project capital outlay Agency Overhead Allocation $ $ $ $ FY15 Amended Budget 3,476,435 3,845,721 12,051,200 19,373,356 $ 451,388 43,117 2,022,183 25,000 13,414,314 382,587 52,500 305,225 348,250 1,596,955 100,000 5,000 1,000 2,000 153,200 66,667 122,915 4,500 4,600 56,867 215,088 19,373,356 $ $ $ Amount Increase/ (Decrease) 9,397,238 28,168,000 20,883,000 58,448,238 $ 549,754 47,614 2,802,136 29,000 136,000 48,665,853 1,277,034 170,000 3,182,419 187,870 579,890 150,000 120,000 3,193 9,876 6,000 4,000 36,505 146,080 5,950 5,200 15,000 18,000 300,864 58,448,238 $ $ $ (5,920,803) (24,322,279) (8,831,800) (39,074,882) (98,366) (4,497) (779,953) (4,000) (136,000) (35,251,539) (894,447) (117,500) (3,182,419) 117,355 (231,640) 1,596,955 (50,000) (120,000) (3,193) (4,876) (5,000) (2,000) 116,695 66,667 (23,165) (1,450) (600) (15,000) 38,867 (85,776) (39,074,882) FY16 Mesa Extension - Concurrent Non-Project Activities (CNPA) Budget FY16 Adopted Budget FY15 Amended Budget Amount Increase/ (Decrease) Sources of Funds Mesa Expenditures Contractor - Design Build $ $ - $ $ - 17 - $ $ 2,045,216 2,045,216 $ $ (2,045,216) (2,045,216) - $ $ 2,045,216 2,045,216 $ $ (2,045,216) (2,045,216) FY16 Adopted Gilbert Road Capital Project FY16 Adopted Budget Sources of Funds Trans Project Advance Notes Mesa CMAQ Expenditures Salaries and Fringe Benefits RPTA Overhead Consultants - PM/CM Consultants - Planning Support Consultants - Design & Construction Support Contractor - CM@R City Construction Management Consultants - Art Design Consultants - Other Real estate acquisition Business Assistance Light Rail Vehicles Community Advisory Board Advertising Printing Postage Public meetings & information Other direct expenditures LRT project office expense Software Licenses/Maintenance Local meetings & mileage Business Travel LRT project capital outlay Agency Overhead Allocation $ $ $ $ 18 FY15 Amended Budget 4,851,881 253,886 4,200,259 9,306,026 $ 401,783 38,379 1,084,790 10,000 2,600,000 1,000,000 978,673 335,209 381,500 1,000,000 150,000 500,000 120,000 7,000 20,000 15,000 6,000 2,200 107,200 106,666 4,700 3,200 220,567 213,159 9,306,026 $ $ $ Amount Increase/ (Decrease) 1,253,414 235,000 3,900,000 5,388,414 $ 286,112 24,567 500,000 75,000 2,000,000 100,000 80,000 382,195 725,000 75,000 775,000 50,000 1,000 9,500 5,750 3,000 1,200 50,000 2,650 2,600 33,350 206,490 5,388,414 $ $ $ 3,598,467 18,886 300,259 3,917,612 115,671 13,812 584,790 (65,000) 600,000 1,000,000 878,673 255,209 (695) 275,000 75,000 (275,000) 70,000 6,000 10,500 9,250 3,000 1,000 57,200 106,666 2,050 600 187,217 6,669 3,917,612 FY16 Adopted Tempe Streetcar HCT Capital Project FY16 Adopted Budget Sources of Funds PTF Revenue Sales Tax CMAQ Expenditures Salaries and Fringe Benefits RPTA Overhead Consultants - PM/CM Consultants - Design & Construction Support Contractor - Design Build City Construction Management Consultants - Art Design Consultants - Other (7200) Consultants - Planning/Environmental/PE Pothole Program Consultants - Utility Relocation Consultants - Vehicle Design/Procurement Real estate acquisition Business Assistance Community Advisory Board Business Travel Other direct expenditures Agency Overhead Allocation $ $ $ $ 19 FY15 Amended Budget 1,326,210 5,304,842 6,631,052 $ 154,039 14,714 2,200,000 500,000 200,000 200,000 175,000 300,000 300,000 2,500,000 87,299 6,631,052 $ $ $ Amount Increase/ (Decrease) 1,051,390 4,205,559 5,256,949 $ 357,015 30,921 1,212,000 360,000 1,005,125 200,000 75,000 256,000 775,000 250,000 150,000 100,000 1,200 294,450 190,238 5,256,949 $ $ $ 274,821 1,099,282 1,374,103 (202,976) (16,207) 988,000 140,000 (805,125) 100,000 (256,000) (775,000) 300,000 300,000 2,500,000 (250,000) (150,000) (100,000) (1,200) (294,450) (102,939) 1,374,103 FY16 Adopted Capitol/I-10 West Capital Project FY16 Adopted Budget Sources of Funds PTF Revenue Sales Tax CMAQ Expenditures Salaries and Fringe Benefits RPTA Overhead Consultants - Planning Support Consultants - Other Printing Postage Public meetings & information Local meetings & mileage Agency Overhead Allocation $ $ $ $ FY15 Amended Budget 1,200,000 4,800,000 6,000,000 $ 192,435 18,382 5,695,693 93,490 6,000,000 $ $ $ Amount Increase/ (Decrease) 83,050 332,201 415,252 $ 197,569 17,111 75,000 3,000 4,000 4,000 1,200 113,372 415,252 $ $ $ 1,116,950 4,467,799 5,584,748 (5,134) 1,271 5,695,693 (75,000) (3,000) (4,000) (4,000) (1,200) (19,882) 5,584,748 FY 2016 Adopted Non-Prior Rights Utilities Relocation Budget FY16 Adopted Budget Sources of Funds TPAN PTF Revenue Sales Tax Expenditures Salaries and Fringe Benefits RPTA Overhead Tempe Streetcar NPR Utilities Mesa Extension NPR Utilities Northwest Extension NPR Utilities Gilbert Rd Extension NPR Utilities Agency Overhead Allocation $ 500,000 2,330,277 2,830,277 $ $ 42,278 4,039 2,260,000 500,000 23,960 2,830,277 $ 20 FY15 Amended Budget $ $ $ $ 2,004,000 11,751,152 13,755,152 40,766 3,530 1,500,000 5,016,000 5,165,128 2,004,000 25,728 13,755,152 Amount Increase/ (Decrease) $ $ $ $ (1,504,000) (9,420,875) (10,924,875) 1,512 509 760,000 (5,016,000) (5,165,128) (1,504,000) (1,768) (10,924,875) FY 2016 Adopted Systemwide Improvements FY16 Adopted Budget Sources of Funds Federal 5337 SOGR PTF Revenue Sales Tax TIGGER Federal Grant Expenditures Salaries and Fringe Benefits RPTA Overhead Solar Canopy Project Consultants - Other Systemwide Capital Agency Overhead Allocation $ 340,563 5,379,383 5,719,946 $ $ 3,250 5,716,696 5,719,946 $ FY15 Amended Budget $ $ $ $ 340,000 3,584,930 2,555,000 6,479,930 159,920 13,851 3,420,000 9,500 2,814,360 62,299 6,479,930 Amount Increase/ (Decrease) $ $ $ $ 563 1,794,453 (2,555,000) (759,984) (159,920) (13,851) (3,420,000) (6,250) 2,902,336 (62,299) (759,984) FY 2016 Adopted Scheduled Capital Debt Service FY16 Adopted Budget Sources of Funds PTF Revenue Sales Tax Expenditures Debt Service - Interest Debt Service -Principal FY15 Amended Budget Amount Increase/ (Decrease) $ $ 19,359,878 19,359,878 $ $ 19,361,105 19,361,105 $ $ (1,227) (1,227) $ 7,741,599 11,618,279 19,359,878 $ 8,119,661 11,241,444 19,361,105 $ (378,062) 376,835 (1,227) $ $ $ *Debt Service is shown in the VMR budget for information only. The Debt Service budget is developed and included within the RPTA budget. The table above represents the combined interest and principal amounts due for PTF Bond issuance to support Capital Rail projects. 21 Funds Flow Fiscal Year 2016 $Thousands Adopted Funds Flow - Fiscal Year 2016 ($ Thousands) Central Mesa Funding Sources Fare Revenue: Phoenix Tempe Mesa Advertising Revenue: Phoenix Tempe Mesa Phoenix Tempe Mesa Glendale Chandler Trans Project Advance Notes Federal 5309 Federal 5337 SOGR Federal CMAQ Federal 5307 PM Federal TOD Grant Regional PTF Sales Tax Regional PTF Revenue Bonds RPTA MAG Arranged Funding TOTAL FUNDING $ - Northwest Extension Tempe Streetcar Gilbert Road Capitol I10 West $ $ $ $ - - - - Other Capital $ - Operations & Proj. Dev. $ 254 4,852 3,846 12,051 5,305 22,749 21,524 3,476 $ 19,373 - $ 44,272 500 4,200 4,800 1,326 1,200 341 8,207 3,429 1,988 $ $ $ 8,207 3,429 1,988 573 192 111 15,178 5,850 3,353 23 273 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 573 192 111 15,178 5,850 3,607 23 273 5,352 3,846 341 28,127 1,143 154 39,044 25,000 500 500 1,771 1,143 154 6,060 7,710 500 500 $ 6,631 22 $ 9,306 $ 6,000 $ 8,550 $ Total Funding 49,304 $ 143,436 Five – Year Operating Forecast and Capital Program FY 2016 – FY 2020 23 VALLEY METRO RAIL SERVICES VMR was formed to plan, design, construct, and operate the VALLEY 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 40 miles of High Capacity Transit, to be funded by local taxes, Proposition 400 revenues, and Federal Funds, are planned for future years. See “Future Projects” for further information. 24 VALLEY METRO RAIL SERVICES (continued) Operations & Maintenance: VMR is responsible for overseeing the day-to-day operations of the VMR system with the ultimate goal of providing a safe, reliable and customer focused transit system. In December of 2008, revenue operations began and VMR 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. VMR is self-performing core systems maintenance including track, power, signals and communication systems. Planning and Development: The proposed high capacity/light rail transit system will include over 60 miles of service in four cities within the next 17 years. Before any specific transit corridor is initiated, VMR 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. VMR 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. VMR is responsible to assure that adequate funding is in place to implement, maintain and operate the light rail program. VMR staff works closely with federal, state, regional and local agencies that provide present and future funding for the light rail system. VMR, in coordination with all affected agencies, annually updates the HCT element of the Transit Life Cycle Program, which defines light rail projects, funding, and schedule. Finally, VMR assists with light rail station area planning by actively engaging to support member cities’ efforts to facilitate Transit Oriented Development (TOD). Design and Construction: VMR is responsible for the design and construction of the regional rail transit system. Efforts include design for guideway, passenger stations, LRV traction power, signals and communications systems and maintenance facilities. VMR coordinates right-of-way acquisitions and public and private utility relocations to make way for construction. 25 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. 26 Five-Year Plan Summary Uses of Funds: The cumulative uses of funds, FY 2016 through FY 2020, are summarized as follows: Uses of Funds Five Year Total LRT Operations & Maintenance Project Development Planning Agency Operating Budget $ ($,000) 230,132 55,223 4,820 290,175 57,108 19,373 138,068 162,880 280,182 69,459 28,781 Subtotal - Operations and Project Development Northwest Extension Phase 1 Central Mesa Gilbert Rd Tempe Streetcar Capitol I-10 West Non-Prior Rights Utilities Systemwide Improvements 755,851 Subtotal - Capital Total Uses $ 27 1,046,026 Sources of Funds: The cumulative sources of funds, FY 2016 through FY 2020, are summarized as follows: Sources of Funds Five Year Total ($,000) LRT Fares Advertising Member City Contributions: Phoenix Tempe Mesa Glendale Chandler $ 87,245 4,649 $ 72,409 58,604 25,458 125 475 Regional Funding: MAG / RPTA PTF Sales Tax Revenue PTF (Reserve) / Borrowing 5,000 183,394 134,735 TPAN 141,539 Federal Funding: FTA Section 5309 CMAQ Federal 5307 PM FTA - TOD Grant Federal 5337 SOGR Total Sources $ 28 200,808 120,230 5,713 154 5,488 1,046,026 Table 1–Five-Year Capital Program and Operating Forecast Summary ($000) 2016 2017 2018 2019 Cumulative 2016 - 2020 2020 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 Capitol I-10 West Non-Prior Rights Utilities Systemwide Improvements $ $ 94,132 Subtotal - Capital Total Uses 37,654 10,741 909 49,304 44,272 19,373 9,306 6,631 6,000 2,830 5,720 42,840 15,157 935 58,932 12,836 57,340 68,765 6,100 11,940 11,867 $ 168,848 44,511 14,421 963 59,896 63,227 87,484 28,941 19,571 5,403 $ 204,626 51,730 7,646 992 60,368 8,195 42,420 17,328 4,507 $ 72,450 53,397 7,257 1,021 61,675 196,721 17,790 1,284 $ 215,795 230,132 55,223 4,820 290,175 57,108 19,373 138,068 162,880 280,182 69,459 28,781 755,851 $ 143,436 $ 227,780 $ 264,522 $ 132,818 $ 277,470 $ 1,046,026 $ 15,178 5,850 3,607 23 273 1,000 $ (43,714) 16,267 3,870 26 106 1,000 $ 21,965 17,570 4,094 26 46 1,000 $ 23,976 9,382 6,884 24 24 1,000 $ 55,005 9,536 7,002 26 26 1,000 $ 72,409 58,604 25,458 125 475 5,000 SOURCES OF FUNDS Phoenix Tempe Mesa Glendale Chandler MAG / RPTA PTF Sales Tax Revenue PTF (Reserve) / Borrowing TPAN Funds LRT Fares Advertising FTA Section 5309 CMAQ Federal 5307 PM Federal 5337 SOGR FTA - TOD Grant Total Sources $ 36,964 27,073 5,351 13,624 876 3,846 28,138 1,143 341 154 143,436 $ 32,411 76,381 62,340 17,256 902 31,493 27,613 1,143 686 227,780 $ 35,331 24,426 65,653 17,509 929 43,507 30,982 1,143 341 264,522 $ 37,910 (17,128) 8,195 18,817 957 21,634 16,748 1,142 3,253 132,818 $ 40,781 23,983 20,040 985 100,328 16,749 1,142 867 277,470 $ 183,394 134,735 141,539 87,245 4,649 200,808 120,230 5,713 5,488 154 1,046,026 Note: Negative sources of funds reflect reimbursements to City of Phoenix for the Northwest Extension Advance (source of funding is Public Transportation Fund). 29 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 2016 through FY 2020 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 Subtotal Capital Planning Funds - PTF Federal 5307 PM FTA - TOD Grant RPTA/MAG/ CMAQ / STP Total Sources $ $ $ ($,000) 87,245 4,649 78,793 35,604 25,204 125 475 140,200 $ 30 ($,000) 230,132 55,223 4,820 290,175 35,124 5,714 154 17,088 290,175 Table 2 – Five-Year Operating Forecast - - - - - - - - - - - - - - - - - - -Year of Expenditure ($,000) - -- - - - - - - 2016 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 Advertising Subtotal Local Revenues Capital Planning Funds - PTF MAG RPTA Federal 5307 PM FTA - TOD Grant CMAQ Total Sources 2017 2018 2019 2020 TOTAL 37,654 10,741 909 49,304 42,840 15,157 935 58,932 44,511 14,421 963 59,896 51,730 7,646 992 60,368 53,397 7,257 1,021 61,675 230,132 55,223 4,820 290,175 8,207 3,429 1,988 13,624 10,894 3,665 2,697 17,256 11,054 3,719 2,736 17,509 11,310 4,604 2,903 18,817 12,024 4,910 3,106 20,040 53,489 20,327 13,429 87,245 15,178 5,850 3,353 23 273 876 25,552 16,286 5,267 3,870 26 106 902 26,457 16,177 5,570 4,094 26 46 929 26,843 15,492 9,382 6,884 24 24 957 32,762 15,661 9,536 7,002 26 26 985 33,234 78,793 35,604 25,204 125 475 4,649 144,850 6,060 7,831 8,426 6,598 6,208 35,124 500 500 1,143 154 1,771 49,304 500 500 1,143 5,245 58,932 500 500 1,143 4,975 59,896 500 500 1,142 48 60,368 500 500 1,142 49 61,675 2,500 2,500 5,714 154 12,088 290,175 5-Year Operating Assumptions:  Central Mesa Extension opens revenue service in October 2015  Northwest Phase I opens revenue service in July 2016  Gilbert Rd opens revenue service in July 2018  Tempe Streetcar opens revenue service in July 2018 31 Passenger Operations & Maintenance Rail Transportation Service Delivery: Rail Transportation is responsible for ensuring the overall safety and reliability of the VMR system. This includes the Rail Control Center, Field Supervision and Train Operators. Rail Transportation will be responsible for monitoring the VMR 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. System Maintenance: Systems Maintenance is responsible for maintaining all VMR 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) Another fare increase has been planned for FY17 which will raise the base fares approximately 12%. 32 Table 3 – Rail Operations and Maintenance Cost Forecast FY 2016 through 2020 - - - - - - - - - - - - -Year of Expenditure Dollars - - ---- - - - - - Annual Cost Projection Transportation Labor and Materials Labor - Fare Inspection & Security Propulsion Power Transportation Total Vehicle Maintenance METRO LRVM Labor LRVM Parts and Materials Major PM Activities-Non-Capital Maintenance Other / Insurance - Accident Recoveries Vehicle Maintenance Total Systems and Facilities Maintenance Track/Station/Facility Maintenance Traction Power System Maintenance Labor Signals/Communications/TVMs Labor Material Control/Supplies/Other Direct Costs Utilities Fare Collection Material & Armored Car Less Transfer TVM Billing to RPTA Fare Revenue Handling Fee Systems and Facilities Maintenance Total Administration Property and General Liability Insurance VMR Management General & Administrative Costs Credit for Unfilled Positions Contingency Reserve Administration Total TOTAL OPERATING COSTS FY 2016 $ FY 2017 FY 2018 FY 2019 FY 2020 9,690,024 3,604,472 2,635,243 15,929,740 $ 18,770,814 $ 19,333,938 $ 23,687,365 $ 4,920,059 1,826,300 97,923 (307,009) 6,537,273 $ 5,266,884 2,232,857 240,938 (372,687) 7,367,991 $ 5,424,890 2,299,842 757,714 (383,868) 8,098,579 $ 5,587,637 2,368,838 332,930 (395,384) 8,682,077 $ $ 3,059,617 1,243,351 1,595,514 1,118,680 1,507,882 293,084 (99,432) 340,606 9,059,301 $ 10,334,805 $ 10,521,567 $ 11,788,016 $ 12,134,489 $ 1,871,908 1,846,611 2,326,699 (417,150) 500,000 6,128,067 $ 6,366,407 $ 6,557,399 $ 7,572,334 $ 7,799,504 $ 37,654,381 $ 42,840,016 $ 44,511,483 $ 51,729,792 $ 53,396,653 $ $ $ $ 24,397,986 5,961,168 2,671,758 465,054 (407,245) 9,064,674 In fiscal year 2016 the Central Mesa alignment is forecasted to commence revenue operations (October 2015). The total $37.6 million operating cost forecast in FY16 is composed of the following components:   Base 20 mile system Central Mesa Extension ( 9 months) $ 34.1 M $ 3.5 M The total $42.8 million operating cost forecast in FY 17 is composed of the following components:  Base 20 mile system $ 35.5 M  Northwest Extension $ 3.5 M  Central Mesa Extension $ 3.8 M The total $44.5 million operating cost forecast in FY 18 is composed of the following components:  Base 20 mile system $ 37.1 M  Northwest Extension $ 3.6 M  Central Mesa Extension $ 3.8 M 33 The total $51.7 million operating cost forecast in FY19 is composed of the following components:  Base 20 mile system $ 37.5 M  Northwest Extension $ 3.7 M  Central Mesa Extension $ 3.9 M  Gilbert Rd Extension $ 2.6 M  Tempe Streetcar $ 4.0 M The total $53.4 million operating cost forecast in FY 20 is composed of the following components:  Base 20 mile system $ 38.8 M  Northwest Extension $ 3.8 M  Central Mesa Extension $ 4.1 M  Gilbert Rd Extension $ 2.6 M  Tempe Streetcar $ 4.1 M 34 Table 4 – Rail Operations Fares and Member City Funding FY 2016 to FY 2020 Fiscal Year FY 16 Annual Ridership / Fares RIDERSHIP FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 15,557,714 16,102,036 16,338,821 17,559,796 17,223,379 0.88 1.07 1.07 1.07 1.16 AVG Fare Baseline Rides Weekday Saturday Sunday Total Baseline Rides OPERATING REVENUES Fare Revenues Phoenix Tempe Mesa Total Fare Revenues Fare Assumption 11,934,102 $ 0.88 $ 10,450,970 1,978,860 $ 0.88 1,732,934 1,644,751 $ 0.88 1,440,347 15,557,714 $ 0.88 $ 13,624,251 60.24% 25.17% 14.59% $ 10,450,970 $ 1,732,934 1,440,347 13,624,251 $ 13,347,829 $ 2,095,781 1,811,332 17,254,942 $ 13,544,113 $ 2,126,600 1,837,968 17,508,680 $ 14,556,243 $ 15,372,778 2,285,517 2,549,047 1,975,317 2,118,668 18,817,077 $ 20,040,493 FY 2016 FY 2017 FY 2018 FY 2019 8,207,195 $ 3,429,453 1,987,604 13,624,251 $ 10,893,682 $ 3,664,624 2,696,635 17,254,942 $ 11,053,876 $ 3,718,514 2,736,290 17,508,680 $ 11,310,264 $ 12,024,296 4,604,178 4,909,921 2,902,634 3,106,276 18,817,077 $ 20,040,493 $ $ $ 36% 40% 39% 36% $ 875,500 $ 572,943 191,544 111,013 901,765 $ 612,815 166,460 122,490 928,818 $ 631,199 171,454 126,165 956,682 $ 566,888 229,322 160,472 $ 1,142,800 $ 688,418 287,662 166,720 1,142,800 $ 721,492 242,709 178,599 1,142,800 $ 721,492 242,709 178,599 60.24% 25.17% 14.59% $ 22,716,301 $ 9,492,217 5,445,863 37,654,381 $ 27,046,484 $ 9,098,412 6,695,120 42,840,016 $ 28,101,743 $ 9,453,400 6,956,340 44,511,483 $ 27,480,004 $ 28,365,477 14,266,558 14,726,261 9,983,231 10,304,915 51,729,792 $ 53,396,653 60.18% 25.37% 14.45% $ 13,247,745 $ 5,583,559 3,180,526 22,011,829 $ 14,818,496 $ 5,024,619 3,697,395 23,540,510 $ 15,695,176 $ 5,320,724 3,915,286 24,931,185 $ 14,995,771 $ 15,150,206 9,117,884 9,264,966 6,699,578 6,812,806 30,813,233 $ 31,227,978 Fare Recovery Ratio Advertising Revenue Phoenix Tempe Mesa 65.44% 21.88% 12.68% Federal 5307 PM Phoenix Tempe Mesa 60.24% 25.17% 14.59% Gross Operating Costs Phoenix Tempe Mesa Total Operating Costs Member City Funding Phoenix Tempe Mesa Total Member City Funding TOTAL OPERATING REVENUE FY 2020 $ $ $ 37,654,381 $ 42,840,016 $ 44,511,483 1,142,800 607,081 315,173 220,547 $ 51,729,792 38% 985,383 583,895 236,202 165,286 $1,142,800 607,081 315,173 220,547 $ 53,396,653 Fare revenue is forecasted to grow from FY 16 through FY 20 with a combination of increased ridership and increased fare structure. Baseline ridership is forecasted to grow by 1% per year. FY16 includes an estimated 1.2M passengers relating to the Central Mesa extension opening. Additional passenger rides are developed in FY 17 through FY 20 with the addition of the Northwest, Gilbert Road and Tempe Streetcar Extensions. 35 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. 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 2016 to FY 2020 - - - - - - - - - - - - - - - - - - - - - (YOE $,000) - - - - - - - - - - - - - - - - - - - - - - 2016 USES OF FUNDS Tempe Streetcar Capitol/I-10 West West Phoenix/Central Glendale Northeast Phoenix South Central Fiesta/Downtown Chandler Northwest Phase II Systems Planning & Project Development Capital Project Development Administration Total Uses SOURCES OF FUNDS Tempe (TOD) Phoenix Chandler CMAQ PTF RARF RPTA MAG FTA TOD Grant Total Sources $ 2017 2018 2019 1,407 806 649 305 1,476 250 906 3,491 1,451 $ 10,741 $ 500 6,057 500 41 1,000 80 435 5,050 1,494 $ 15,157 $ 6,218 900 42 20 500 5,202 1,539 $ 14,421 $ $ $ $ $ 30 1,476 250 1,771 6,060 500 500 154 $ 10,741 1,000 80 5,245 7,831 500 500 $ 15,157 36 - - 20 4,975 8,426 500 500 $ 14,421 $ $ 2020 60 600 43 5,358 1,585 7,646 $ - $ - 48 6,598 500 500 7,646 - $ $ Total 62 45 5,519 1,633 7,257 - - 49 6,208 500 500 7,257 $ 1,907 13,203 2,649 477 2,476 350 1,841 24,619 7,701 $ 55,223 $ 30 2,476 350 12,088 35,124 2,500 2,500 154 $ 55,223 FIVE-YEAR CAPITAL PROGRAM – FY 2016 THROUGH FY 2020 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 – 3.0 mile alignment extending southward along Mill Avenue in downtown Tempe from Rio Salado to Southern. Capitol / I-10 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 VMR. 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. 37 All Capital Projects -- Uses of Funds: VMR 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 $756 million through the five-year planning horizon. These uses of funds are summarized as follows: FY 2016 THROUGH FY 2020 Uses of Funds - Capital Projects NW Ext Phase 1 Central Mesa Gilbert Rd Tempe Streetcar Capitol I-10 West NPR Utilities Systemwide Improvements ($,000) $ 57,108 19,373 138,068 162,880 280,182 69,459 28,781 $ 755,851 Total Capital Costs 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 2016 THROUGH FY 2020 Sources of Funds - Capital Projects ($,000) Phoenix Tempe Mesa Public Transportation Funds TPAN Federal Revenues: FTA Sec 5309 CMAQ $ Total Capital Revenues $ (6,384) 23,000 254 283,008 141,539 206,295 108,139 755,851 Note: Negative sources of funds reflect reimbursements to City of Phoenix for the Northwest Extension Advance (source of funding is Public Transportation Fund). 38 Table 6 – Five-Year Capital Program / All Projects ($000) 2016 USES OF FUNDS Northwest Extension Phase 1 Central Mesa Gilbert Rd Tempe Streetcar Capitol I-10 West Subtotal HCT Corridors Non-Prior Rights Utilities Systemwide Improvements Total Capital Costs SOURCES OF FUNDS Phoenix Tempe Mesa Subtotal $ $ $ Public Transportation Funds Sales Tax Proceeds PTF Bond and Fund Balance TPAN Federal Revenues: FTA CMAQ Subtotal Federal Total Revenues $ 2017 $ 63,227 87,484 28,941 179,652 2019 44,272 19,373 9,306 6,631 6,000 85,582 $ 2,830 5,720 94,132 11,940 11,867 $ 168,848 19,571 5,403 $ 204,626 $ $ (60,000) 11,000 (49,000) $ $ 254 254 12,836 57,340 68,765 6,100 145,041 2018 5,788 12,000 17,788 $ 2020 FY 2016-20 196,721 196,721 $ 8,195 42,420 50,615 $ 17,328 4,507 72,450 17,790 1,284 $ 215,795 69,459 28,781 $ 755,851 $ $ 8,484 8,484 39,344 39,344 57,108 19,373 138,068 162,880 280,182 657,611 (6,384) 23,000 254 16,870 57,976 30,903 27,073 100,961 24,580 76,381 51,331 26,905 24,426 14,184 31,312 (17,128) 58,556 34,573 23,983 283,008 148,273 134,735 5,351 62,340 65,653 8,195 - 141,539 4,186 26,364 30,550 94,132 32,179 22,368 54,547 $ 168,848 43,848 26,007 69,855 $ 204,626 24,887 16,700 41,587 72,450 $ 101,195 16,700 117,895 $ 215,795 206,295 108,139 314,434 $ 755,851 Transportation Excise Tax Revenue Bond issue by the Regional Public Transit Authority (RPTA) in support of the rail capital program is anticipated as follows:  FY 2017 Approximately $70 million The bonds are funded by the Public Transportation Fund sales tax proceeds over the 8 years remaining of the Prop 400 initiative. 39 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 60 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, 3.0-miles into south Tempe, 5-miles west into Glendale, 11miles into west Phoenix, an additional 1.9 miles in Mesa to Gilbert Rd., and 12-miles into northeast Phoenix. VMR 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: **South Central Phoenix corridor project development is shown. Construction schedules have not been determined at this time. 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. 40 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 VMR 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. 41 The City of Phoenix provided 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 Capitol/I-10 West Extension. Northwest Extension Sources and Uses of Funds: The total capital cost of the Northwest Extension project over the FY 2005 to FY 2017 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-2016 $ 2016 2017 2018 23,930 247,055 $ 270,985 $ 20 44,272 $ 44,292 $ $ $ 44,292 44,292 $ (60,000) 72,836 12,836 $ - $ - $ 44,292 $ 12,836 $ - $ - 60,000 89,690 121,295 270,985 $ 270,985 $ 11,336 1,500 12,836 $ $ - 2019 $ $ - 2020 $ TOTAL - 23,950 302,663 1,500 $ 328,113 $ - $ $ - $ 328,113 $ $ 89,690 238,423 328,113 Concurrent Non-Project Activities Related to Northwest Extension: - - - - - - - ($,000) - - - CNPA Total CNPA Costs - WSD Pre-2016 $ 10,736 $ 2016 - $ 2017 - $ 2018 - $ 2019 - $ 2020 - $ TOTAL 10,736 $ $ - $ - $ - $ - $ - $ 10,736 REVENUES Phoenix 10,736 42 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, VMR 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 VMR. Design for the Central Mesa LRT Extension began in FY 2011. The Central Mesa LRT extension is scheduled to commence passenger operations in the second half of calendar year 2015. Central Mesa LRT Extension Alignment 43 Central Mesa Extension Sources and Uses of Funds: The total capital cost of the Central Mesa Extension project through FY 2016 is budgeted to be approximately $190.8 million, excluding financing costs. - - - - - - - ($,000) - - - - - Central Mesa 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-2016 $ 2016 2017 8,110 163,294 5,827 $ 177,231 $ 26 19,373 2,380 $ 21,779 $ $ 71,154 40,857 112,011 $ 3,846 12,051 15,897 $ 65,220 65,220 $ $ 177,231 2018 - $ $ - 5,882 5,882 $ $ 21,779 $ $ 2019 - $ $ - - $ - $ $ 2020 - $ $ - - $ - $ $ TOTAL - $ $ - $ 75,000 52,908 127,908 - $ - $ 71,102 71,102 - $ - $ 199,010 $ 8,136 182,667 8,207 $ 199,010 Concurrent Non-Project Activities Related to Central Mesa: - - - - - - - ($,000) - - - - - CNPA Total CNPA Costs Pre-2016 $ 7,568 2016 $ - 2017 $ - 2018 $ - 2019 $ - $ 2020 - $ $ $ $ $ $ - TOTAL $ 7,568 REVENUES Mesa 7,568 - 44 - - - $ 7,568 Tempe Streetcar Project -- The Tempe Streetcar project is located on Rio Salado Parkway from the Marina Heights development west to Mill Avenue, downtown loop on Mill and Ash avenues and south to Apache Boulevard, then east to Dorsey lane. 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. 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, local funding, and federal grants. Project Development for the Tempe Streetcar project is scheduled to continue in FY 2015. Pending FTA Small Starts approval, construction could be complete in FY18. 45 Tempe Streetcar Sources and Uses of Funds: The total capital cost of the Tempe Streetcar project is budgeted to be approximately $176.6 million, excluding financing costs. - - - - - - ($,000) - - - Tempe Streetcar Extension CAPITAL COSTS NPR Utilities Project Costs Pre-2016 Total Capital Costs CAPITAL REVENUES FTA Section 5309 CMAQ Total Federal Tempe PTF Revenue Total Local Total Capital Revenue 2016 2017 2018 $ 2,277 6,631 $ 8,908 $ 6,940 68,765 $ 75,705 $ 4,503 87,484 $ 91,987 $ $ - $ - $ $ 31,493 17,488 48,981 $ 43,507 9,307 52,814 $ - 5,305 5,305 $ - $ 3,603 3,603 11,000 $ 15,724 26,724 12,000 $ 27,173 39,173 $ - $ - $ $ - $ 8,908 $ 75,705 $ 91,987 $ - $ - $ 176,600 $ 2019 $ 2020 - $ - $ $ TOTAL - $ 13,720 162,880 $ 176,600 - $ 75,000 32,100 107,100 23,000 46,500 69,500 Capitol / I-10 West Extension -- The Capital / I-10 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 existing Valley Metro light rail. Planning for the Capitol/I-10 West corridor began spring 2007 with an Alternatives Analysis (AA). The AA evaluated possible routes to connect the light rail in downtown Phoenix with west Phoenix in the vicinity of 79th Ave / I-10. AA also evaluated 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 continue through 2015. Concurrent with the environmental analysis, Valley Metro Rail will generate detailed engineering designs of the selected alignment and station layouts. 46 Capitol / I-10 West LRT Extension Capitol / I-10 West Extension Sources and Uses of Funds: The total capital cost of the Capitol/I-10 West Extension project over the FY 2016 to FY 2020 period is budgeted to be approximately $327.9 million, excluding financing costs. - - - - - - ($,000) - - - Capitol/I-10 West Extension CAPITAL COSTS NPR Utilities Project Costs Financing Costs Pre-2016 $ - $ 6,000 $ Total Capital Costs $ - $ 6,000 $ $ - $ 4,800 4,800 $ CAPITAL REVENUES FTA Section 5309 CMAQ Total Federal Phoenix PTF Revenue Total Local Total Capital Revenue 2016 2017 2018 2019 2020 TOTAL 6,100 635 6,735 $ 12,642 28,941 3,041 $ 44,624 $ 17,328 42,420 4,698 $ 64,446 $ 17,790 196,721 5,314 $ 219,825 $ 47,760 280,182 13,689 $ 341,631 4,880 4,880 $ 16,700 16,700 $ 21,634 16,700 38,334 $ 100,328 16,700 117,028 $ 121,962 59,780 181,742 $ - $ 1,200 1,200 $ 1,855 1,855 5,788 $ 22,136 27,924 8,484 $ 17,628 26,112 39,344 $ 63,453 102,797 53,616 $ 106,273 159,889 $ - $ 6,000 $ 6,735 $ 44,624 $ 64,446 $ 219,825 $ 341,631 47 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 began in FY 2014 and will commence passenger operations in July 2018. 48 Gilbert Road LRT Extension Alignment Gilbert Road Extension Sources and Uses of Funds: The total capital cost of the Gilbert Road Extension project is budgeted to be approximately $147.1 million, excluding financing costs and Operations and Maintenance Center contingency costs. - - - - - - ($,000) - - - Gilbert Rd Extension CAPITAL COSTS NPR Utilities Project Costs Vehicle Procurement Total Capital Costs CAPITAL REVENUES City of Mesa TPAN CMAQ Flex Total Capital Revenue Pre-2016 $ 2016 2017 2018 2019 1,099 $ 1,099 $ 507 8,806 500 $ 9,813 $ 5,000 49,640 7,700 $62,340 $ 2,426 55,527 7,700 $ 65,653 6,195 2,000 $ 8,195 $ $ $ $ $ $ 8,195 - $ 8,195 63 1,036 $ 1,099 254 5,351 4,208 $ 9,813 62,340 - $62,340 49 65,653 - $ 65,653 $ 2020 TOTAL - 7,933 121,267 17,900 $ 147,100 $ - $ $ - $ 147,100 $ $ 317 141,539 5,244 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. During FY 2016 VMR will overhaul LRV brake systems, purchase a platform truck for rail operations, and perform station enhancements including enhanced platform security cameras and improved station signage. Non-Revenue fleet vehicles used for Maintenance crews will be replaced as necessary. Beginning in FY16 and continuing into FY19, major light rail vehicle components such as the pantographs, HVAC, 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 2020 is budgeted to be approximately $28.8 million. - - - - - - ($,000) - - - 2016 Systemwide Improvements CAPITAL COSTS All Other LRV Capital PM Total Capital Costs $ CAPITAL REVENUES Federal 5337 SOGR Total Federal $ PTF Revenue Total Local Total Capital Revenue $ 3,541 2,178 5,720 341 341 2017 2018 7,406 4,461 $ 11,867 $ $ $ 686 686 5,379 5,379 11,181 11,181 5,720 $ 11,867 50 1,314 4,089 5,403 341 341 2019 $ $ 5,063 5,063 $ 5,403 561 3,947 4,507 3,253 3,253 2020 $ $ 1,254 1,254 $ 4,507 $ 320 964 1,284 867 867 TOTAL $ 13,142 15,639 $ 28,781 $ 5,488 5,488 417 417 23,293 23,293 1,284 $ 28,781 Valley Metro FY16 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 VMR Board is executed by adoption of the Annual Budget. 51 Valley Metro Five-Year Staffing Forecast Full Time Equivalent (FTE) Position Funding by Project Regional Public Transportation Authority Staffing Forecast Projects Operations: Transit Service Operations Administrative Regional Services Planning Business Services Capital Projects: BRT Improvements FY16 Total Full Time Equivalent Staff FY17 FY18 FY19 FY20 16.00 33.30 64.45 8.30 6.05 16.95 33.65 63.55 8.90 6.05 16.95 33.05 63.55 8.90 6.05 16.95 34.90 63.55 8.90 6.05 16.95 34.85 64.35 8.90 6.05 0.69 0.80 0.67 0.67 0.67 128.79 129.90 129.17 131.02 131.77 Projects Operations: Revenue Operations Agency Operations Agency Overhead Capital Projects: Northwest Extension Central Mesa Gilbert Road Non Prior Rights Utility Relocation Future Project Development: Capital Project Development Admin Systems Studies General Agency Support - Project Dev Capitol I-10 West Tempe Streetcar Phoenix West-Central Glendale South Central Northwest Extension Phase II Northeast Extension FY16 FY17 FY18 FY19 FY20 132.45 3.20 10.80 132.56 3.20 11.05 132.91 3.20 11.25 143.08 3.20 11.15 143.50 3.20 11.20 5.96 3.98 3.49 0.47 2.75 1.85 5.66 0.42 2.30 0.75 6.86 0.53 3.60 0.95 1.90 0.95 6.28 1.78 8.33 1.60 2.63 0.65 0.91 0.65 0.05 6.83 1.63 8.00 2.20 6.27 0.48 0.51 0.40 0.30 7.08 1.78 7.82 2.48 6.25 0.83 0.10 0.40 0.30 6.88 2.06 8.80 6.39 3.37 1.31 1.80 0.90 0.50 6.68 1.90 9.04 8.02 1.42 3.28 1.40 1.25 0.50 Total Full Time Equivalent Staff 183.21 184.10 184.83 193.98 194.23 Combined Agency Total 312.00 314.00 314.00 325.00 326.00 METRO Staffing Forecast 52 Valley Metro Regional Public Transportation Authority FY16 New Positions Title Division Sr. Network Engineer Sr. IT - Systems Engineer LRV Maintenance Technician I (4) LRV Maintenance Technician II LRV Inspector (3) Sig/Comm Maintainer (2) Traction Power (2) Track Maintainer (2) Administration Administration Operations - Rail Operations - Rail Operations - Rail Operations - Rail Operations - Rail Operations - Rail Scope of Work IT-Positions required to support planned IT expansion and additional responsibilities Additonal positions to support the opening of six miles additional Rail Service The Central Mesa and Northwest Extensions commence operations in October 2015 and July 2016 respectively State of good repair schedule increases number of rebuilds of major components for Light Rail Vehicles and Systems Components 53 Valley Metro Regional Public Transportation Authority FY16 Adopted FTE Count by Pay Grades and Ranges FTE Effort Pay Grade Position Title Adopted Pay Range I Cleaner $22,824 - $34,237 0.00 10.00 10.00 III Administrative Assistant I Customer Service Representative Document Control Clerk LRV Yard Operator Stockroom Clerk Transit Distribution and Signage Assistant $28,179 - $42,268 0.55 39.00 0.10 0.00 0.00 0.50 1.45 0.00 0.90 2.00 2.00 0.50 2.00 39.00 1.00 2.00 2.00 1.00 IV Customer Service Application Technician Lead Document Control Clerk LRV Inspector Materials Handler $31,310 - $46,965 1.00 0.10 0.00 0.00 0.00 0.90 12.00 1.00 1.00 1.00 12.00 1.00 V Accounting Technician Administrative Assistant II Lead Customer Service Representative LRV Lead Inspector/Cleaner $34,441 - $51,661 3.40 5.30 4.00 0.00 0.60 5.70 0.00 1.00 4.00 11.00 4.00 1.00 VI Design & Construction Project Assistant Human Resources Technician LRV Maintenance Technician I Track Maintainer $37,884 - $56,827 0.02 2.00 0.00 0.00 0.98 0.00 17.00 7.00 1.00 2.00 17.00 7.00 VII Accountant I Administrative Assistant III Help Desk Specialist LRV Maintenance Technician II Planner I Planning Program Specialist Program Representative Signal/Comm System Maintainer Utility Relocation Specialist Vehicle Parts Coordinator $41,673 - $62,510 2.50 0.00 0.40 0.00 0.35 0.30 7.00 0.00 0.07 0.00 0.50 1.00 0.60 12.00 0.65 0.70 0.00 9.00 0.93 1.00 3.00 1.00 1.00 12.00 1.00 1.00 7.00 9.00 1.00 1.00 VIII Bus & Paratransit Fleet/Facilities Coordinator Engineering Technician Executive Administrative Coordinator Graphics Designer LRV Lead Maintenance Technician Materials/Warranty Coordinator Signal & Communications Systems Technician Traction Power Systems Technician $45,841 - $68,762 1.00 0.05 1.00 2.10 0.00 0.00 0.00 0.00 0.00 0.95 1.00 0.90 3.00 1.00 8.00 15.00 1.00 1.00 2.00 3.00 3.00 1.00 8.00 15.00 54 RPTA VMR Total FTE Valley Metro Regional Public Transportation Authority FY16 Adopted FTE Count by Pay Grades and Ranges FTE Effort Pay Grade Adopted Pay Range IX Accountant II Budget Analyst Contracts Administrator Customer Service Supervisor Data Analyst Human Resources Generalist LRV Systems/Equipment Specialist Management Analyst Planner II Program Coordinator Public Information Specialist Regulatory Administrator Safety Specialist Security Coordinator Service Analyst II Web Developer $50,425 - $75,637 2.80 1.00 2.55 5.00 1.00 2.00 0.00 1.00 1.35 7.90 0.85 0.50 0.40 0.40 1.30 2.00 0.20 1.00 2.45 0.00 0.00 0.00 1.00 0.00 1.65 6.10 1.15 0.50 0.60 0.60 0.70 0.00 3.00 2.00 5.00 5.00 1.00 2.00 1.00 1.00 3.00 14.00 2.00 1.00 1.00 1.00 2.00 2.00 X Bus & Paratransit Fleet/Facilities Supervisor Database Administrator LRV Maintenance Supervisor Network Administrator Program Control Specialist Program Supervisor SCADA Network Administrator Senior Contracts Administrator Supervisor, Maintenance of Way (MOW) VMware/Storage Administrator $55,468 - $83,201 1.00 0.40 0.00 0.40 0.00 2.00 0.00 0.40 0.10 0.40 0.00 0.60 3.00 0.60 1.00 0.00 1.00 1.60 2.90 0.60 1.00 1.00 3.00 1.00 1.00 2.00 1.00 2.00 3.00 1.00 XI Employee Relations Administrator GIS Administrator Light Rail Technical Trainer Project Manager Public Arts Administrator Quality Assurance Administrator Senior Construction Project Coordinator Senior Information Technology Systems Engineer Senior Management Analyst Senior Server/Exchange Administrator Senior Network Engineer $61,014 - $91,521 1.00 0.50 0.00 0.80 0.05 0.05 0.10 0.45 1.25 0.40 0.45 0.00 0.50 1.00 1.20 0.95 0.95 0.90 0.55 0.75 0.60 0.55 1.00 1.00 1.00 2.00 1.00 1.00 1.00 1.00 2.00 1.00 1.00 55 RPTA VMR Total FTE Position Title Valley Metro Regional Public Transportation Authority FY16 Adopted FTE Count by Pay Grades and Ranges FTE Effort Pay Grade Position Title Adopted Pay Range RPTA VMR Total FTE XII Assistant Superintendent of LRV Maintenance Manager, Accessible Transit Services Manager, Admin Support Services & Project Management Manager, Budget and Operations Financial Controls Manager, Communications Manager, Community Relations Manager, Customer Service Manager, Facilities Maintenance Manager, General Accounting Manager, Human Resources Support Services Manager, Marketing Manager, Service Planning Manager, Track & Facilities Manager, Transportation Demand Management Stakeholder Affairs Manager Utility Manager $67,115 - $100,673 0.00 1.00 0.50 0.50 0.50 0.30 1.00 0.15 0.65 0.50 1.00 0.90 0.00 1.00 0.00 0.05 1.00 0.00 0.50 0.50 0.50 0.70 0.00 0.85 0.35 0.50 0.00 0.10 1.00 0.00 1.00 0.95 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 XIII Manager, Bus Services Delivery Manager, Financial Reporting Manager, LRT Systems Manager, Operational Support and Analysis Manager, Quality Assurance Manager, Safety & Security Manager, System & Service Development Resident Engineer Senior Project Engineer Systems Engineer $73,827 - $110,740 1.00 0.50 0.05 0.35 0.00 0.50 0.60 0.10 0.05 0.00 0.00 0.50 0.95 0.65 1.00 0.50 0.40 0.90 0.95 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 XIV Chief Maintenance Engineer Government Relations Officer Manager, Construction Manager, Contracts and Procurement Manager, Corridor & Facility Development Manager, Design Manager, Information Technology Services Manager, O & M Start Up & Activation Manager, Revenue Generation & Financial Planning Superintendent LRV Maintenance $83,632 - $125,448 0.00 0.50 0.10 0.50 0.15 0.05 0.45 0.00 0.75 0.00 1.00 0.50 0.90 0.50 0.85 0.95 0.55 1.00 0.25 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 56 Valley Metro Regional Public Transportation Authority FY16 Adopted FTE Count by Pay Grades and Ranges FTE Effort Pay Grade Position Title Adopted Pay Range RPTA VMR Total FTE XV Chief Human Resources Officer Chief of Staff Director, Administration & Organizational Development Director, Communication & Marketing Director, Safety & Security $102,206 - $153,310 1.00 0.50 0.50 0.50 0.40 0.00 0.50 0.50 0.50 0.60 1.00 1.00 1.00 1.00 1.00 XVI Chief Engineer Chief Financial Officer Chief Operations Officer Director, Planning & Development $114,880 - $172,320 0.00 0.50 0.40 0.10 1.00 0.50 0.60 0.90 1.00 1.00 1.00 1.00 GC General Counsel $119,591 - $179,387 0.50 0.50 1.00 ED Chief Executive Officer 0.50 0.50 1.00 FY16 FTE's 129.14 182.86 312.00 FY15 FTE's 130.80 165.20 296.00 -1.66 17.66 16.00 Salary Negotiated Change 57 Appendix A -- The Budget Process VMR’s continuing goal is to provide the highest quality services to our member communities in the most cost effective manner. The VMR 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. VMR’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. The legal level of budgetary control is the total annual appropriated budget. 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. VMR 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 VMR, 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 VMR Board provides final review and adoption. 58 Budget Timelines: The FY 2016 process is outlined below, with Proposed planning beginning in February and with budget adoption scheduled for May 2015. Major phases of this process are outlined below:             October, 31, 2014 – Preliminary Rail Operating Budget to City Staff Jan 14th -- Board approves Agency goals Feb 20th -- Prelim FY16 Operating Budget delivered to Financial Working Group Feb 24th -- Budget presented to Financial Working Group for information Feb 27th -- Draft Budget to Financial Working Group and RTAG for review Mar 17th –Draft budget delivered to RTAG for information Mar 20th -- Comments due to Budget Group Mar 25th -- Draft Budget delivered to RMC Apr 1st -- Budget presented for information to RMC Apr 16th -- Budget presented to Board of Directors for information May 6th -- RMC for approval May 21st -- Board Meeting – Budget Adopted by Board Budget Group Oct Oct - Dec Advisory Groups Board of Directors Review and Approve of Agency Goals Approve of Agency Goals Prepare Preliminary Rail Operating Budget Respond to Questions and Provide Input and Direction Issues Raised Respond to Questions and Issues Raised and Provide Direction Jan Jan – Feb 24th Directors Compile Budget Information and Prepare Draft Budget Respond to Questions and Issues Raised and Provide Direction Review Draft Budget Package and Provide Feedback to Budget Group Feb 27th thru Respond to Questions and Issues Raised Mar 20th Mar 14th – Mar 31st Compile Revisions and Prepare Budget April Respond to Questions and Issues Raised Review Budget May 6th thru May 15th Approve Budget for Submission to the Board May Board Meeting Review Budget Formally Adopted 59 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 VMR 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. CME CNPA CP/EV LRT Central Mesa Extension-additional 3.1 miles 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 VMR is acting as a sub-recipient. FTA GRE Federal Transit Administration Gilbert Road Extension – additional 1.9 miles Headways The time interval between arriving trains or buses along a transit route. (Service Frequency) 60 Appendix B – Glossary of Terms and Acronyms (Cont’d) TERM / ACRONYM DEFINITION HCT High Capacity Transit – includes heavy rail, Light Rail Transit, Bus Rapid Transit modes of urban transportation 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 VMR equity members, currently Phoenix, Tempe, Mesa and Glendale The light rail system to be designed, constructed and operated by VMR. NWX O&M Proposition 400 Northwest Extension – additional 3.2 miles 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. TPAN Transportation Project Advancement Notes. TSC VMR VMT Tempe Street Car Project – additional 3 miles Valley Metro Rail, Inc. Vehicle Miles of Travel for each LRT vehicle operated 61 101 North First Avenue | Suite 1300 | Phoenix, AZ 85003 | valleymetro.org