Valley Metro Rail Adopted Annual Operating & Capital Budget FISCAL 2017 valleymetro.org TTY 602.251.2039 LRT3633 602.253.5000 Valley Metro Rail, Inc. Phoenix, Arizona Adopted Operating and Capital Budget Fiscal Year 2017 (July 1, 2016 through June 30, 2017) Five-Year Operating Forecast and Capital Program FY 2017 through FY 2021 (July 1, 2016 through June 30, 2021) Board of Directors Chair- Councilmember Thelda Williams, Phoenix Mayor Mark Mitchell, Tempe – Vice Chair Councilmember Rick Heumann, Chandler Mayor Jerry Weiers, Glendale Vice Mayor Dennis Kavanaugh, Mesa Executive Management Team Scott Smith, Interim Chief Executive Officer Jyme Sue McLaren, Chief of Staff Raymond Abraham, Chief Operations Officer Rick Brown, Chief Engineer Hillary Foose, Director Marketing and Communication Wulf Grote, Director Planning and Accessible Transit Services Penny Lynch, Human Resources Director John McCormack, Chief Financial Officer Michael Minnaugh, General Counsel Adrian Ruiz, Safety and Security Director William Tsuei, Chief Technology Officer Annual Budget Table of Contents Valley Metro Rail Organization ..................................................................................... 1 Valley Metro Rail Vision ................................................................................................ 2 FY 2016 Highlights ........................................................................................................ 2 Rail Operations Service Plan ....................................................................................... 5 Total Financial Program ............................................................................................... 6 Budget Analysis ......................................................................................... 8 Agency Staff Overview .............................................................................................. 10 FY 2017 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 Extension Project Budget ............................................. 19 50th Street LRT Station Project Budget ................................................... 20 South Central Extension Project Budget ................................................. 20 Non-Prior Rights Utilities Relocation Budget............................................ 21 Systemwide Improvements ...................................................................... 22 Funds Flow FY 2017 .................................................................................................... 23 5 Year Plan Table of Contents 1. Executive Summary Valley Metro Rail Services .................................................................................. 25  Operations & Maintenance ...................................................................... 26  Planning & Development ........................................................................ 26  Design & Construction ............................................................................ 26 Five-Year Plan Summary ................................................................................... 27 2. Five-Year Operating Forecast Uses & Sources of Funds ................................................................................... 30 Operations & Maintenance Cost Estimate FY 2017 - 2021 ................................ 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 ............................................................................... 46 Gilbert Road Extension ....................................................................................... 48 South Central Extension ..................................................................................... 50 50th Street Station ............................................................................................... 53 Northwest Phase II Extension............................................................................. 54 West Phoenix/Central Glendale Extension ......................................................... 56 Systemwide Improvements ................................................................................ 57 Staffing Plan ....................................................................................................... 58 4. Appendix A-The Budget Process ....................................................................................... 63 B-Glossary of Terms and Acronyms ................................................................... 65 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. 1 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 2016 HIGHLIGHTS  VMR ridership increased, serving 14.8 million riders in CY 2015, 3.5% percent more than in CY 2014. 2  Delivered passenger service achieving the following results: Benchmark On Time Perfomance Cost per Boarding Average Fare FY15 Target 95% $2.26 $0.94 FY15 Actual 92.1% $2.19 $0.89  In July 2015, announcement by Phoenix Mayor Stanton, Phoenix Vice Mayor Valenzuela, Phoenix Councilmember Gallego and Tempe Mayor Mark Mitchell that $8.2 billion in private and public capital investment has been built near the initial 20-miles of light rail that extends from Phoenix and Tempe into Mesa. Another $346 million in commercial and residential building is being planned, most of that from private developers.  In August 2015, the region celebrates the opening of the Central Mesa Extension that began construction in June 2012. More than 3,500 commemorative passes distributed at four separate station celebrations. Ridership on Saturday, August 22 was 40,000 riders or 11,000 additional boardings than a typical Saturday in August.  In August 2015, Phoenix residents approve Proposition 104 transportation plan by more than 55%.  In November 2015, the Federal Transit Administration announced that Tempe Streetcar received a Finding of No Significant Impact (or FONSI), which indicates that the three-mile project will have no significant environmental effect on the neighboring communities. The Environmental Assessment includes review of potential impacts to the neighboring environment such as noise and vibration, traffic and parking, historical and archaeological resources.  In December 2015, the South Central Extension entered Project Development following approval from the Federal Transit Administration (FTA). This marks the next step in receiving federal project approval and ultimately eligibility for federal construction funds.  In December 2015, more than 21,000 riders celebrated safely on New Year’s Eve by taking free rides on Valley Metro Rail between 7 p.m. and end of the service day. Boardings were 6,271 higher than in 2014. This is the third consecutive year of the program that is by sponsored by Miller Coors. 3  In January 2016, following a joint meeting of the Valley Metro RPTA and Valley Metro Rail Boards of Directors on Thursday, action was taken to select Scott Smith, former Mayor of Mesa and president of the U.S. Conference of Mayors, as the interim chief executive officer for the Valley Metro organization.  In February 2016, Tempe Streetcar reached a significant milestone with $75 million identified in the President’s FY17 budget to Congress. Given the announcement, Valley Metro and City of Tempe will initiate procurements for streetcar vehicles this spring and designer, artist and Construction Manager at Risk services this summer.  In March 2016, opening celebration of the 3.2-mile Northwest Phoenix Extension held at the 19th Ave/Dunlap Park-and-Ride honored the local community, public art and partnership of the successful new service opening several months ahead of schedule.  In April 2016, Valley Metro Rail hosts an internal rail rodeo competition for operators and maintainers. Winning teams will be sent to the APTA International Rodeo. 4 RAIL OPERATIONS SERVICE PLAN Service Frequency FY 2017 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 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 FY16. 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 17.3 million passengers for the year with fare revenues generating $15.9 million. Over the course of the fiscal year 2017, average weekday boardings are forecasted at 52,000 while Saturday and Sunday average ridership are forecasted at 44,000 and 31,000 per day respectively. Annual Ridership/Fares Total Rides Average Fare Assumption Weekday 52,000 13,147,000 $ 0.92 $ 12,095,000 Saturday 44,000 2,238,000 $ 0.92 $ 2,059,000 Sunday 31,000 1,907,000 $ 0.92 $ 1,755,000 17,292,000 $ 15,909,000 Total Ridership and Fare Average fare per ride is forecasted at $0.92 cents per ride. During FY17 it is anticipated fare discount structure will be modified to increase average fare. The FY17 ridership forecast is 11.1% higher than the FY 2016 plan due to increased ridership projected with the Central Mesa Extension and Northwest Extension I operating for the full year. 5 TOTAL FINANCIAL PROGRAM The FY 2017 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 $154.7 million (*) for the amended FY 2016 Budget. Total uses of funds including debt service for FY17 are estimated to be $217.5 million. Uses of Funds - The FY 2017 Budget includes anticipated operating and capital expenditures in the amount of approximately $197.0 million to support program elements during the period of July 1, 2016 through June 30, 2017, as follows: Uses of Funds ($,000) FY16 Amended Operating Activities: Revenue Operations Future Project Development Agency Operating Budget FY17 Adopted Budget Analysis Change Note # 39,415 11,541 909 51,864 44,890 10,967 1,081 56,938 5,475 (574) 172 5,074 Capital Projects: Northwest Extension Central Mesa Extension Gilbert Road Extension Tempe Streetcar Extension 50th Street LRT Station South Central Extension Non-Prior Rights Utilities Relocations CNPAs - Mesa Extension Systemwide Improvements 49,178 15,549 11,516 1,198 747 1,467 321 3,497 3,203 4,673 57,984 9,476 5,780 39,417 3,185 16,305 (45,975) (10,876) 46,468 8,278 5,033 39,417 1,718 (321) 12,808 Subtotal Capital before Debt Service 83,472 140,023 56,551 135,336 196,961 61,625 Debt Service - Interest Debt Service - Principal 7,742 11,618 19,360 8,366 12,193 20,559 624 575 1,199 Total Uses with Debt Service 154,696 217,520 62,824 Total Uses of Funds 1 2 3 4 5 6 7 8 9 10 11 Capital Project 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 2017 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 2017 Budget includes anticipated capital and operating sources of funds in the amount of approximately $197.0 million (*), as follows: Sources of Funds ($,000) FY16 Amended Operating Activities: Fare Revenue Advertising Revenue Federal 5307 PM Federal CMAQ TIGER Member Cities MAG / RPTA (RARF) PTF Sales Tax Revenue Total Sources with Debt Service Budget Analysis Change Note # 14,019 876 1,143 1,451 1,488 26,324 1,000 5,564 51,864 15,909 1,100 1,197 175 31,139 1,000 6,419 56,938 1,890 224 54 (1,451) (1,313) 4,815 855 5,074 12 7,084 14,491 341 1,665 59,891 83,472 73,232 341 49,237 (60,000) 43,099 34,113 140,023 (7,084) 58,741 47,572 (60,000) 43,099 (25,778) 56,551 17 18 135,336 196,961 61,625 19,360 19,360 20,559 20,559 1,199 1,199 154,696 217,520 62,824 Capital Projects: FTA - Section 5309 Federal CMAQ Federal 5337 SOGR Member Cities Less Repayment Phoenix NW Advance PTF Bond Revenue PTF Sales Tax Revenue Total Sources of Funds Capital Project Debt Service: PTF Sales Tax Revenue FY17 Adopted 13 14 15 16 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 2017 Adopted Budget versus the FY 2016 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. Note Budget Analysis - Uses of Funds 1 FY17 rail operating costs increase by 14% over FY16 levels. In FY17, 26 miles of service will be operated for the full year. Maintenance costs rise with scheduled preventive maintenance activities to maintain the system in a state of good repair, and increased fare inspection and security resources are being deployed. 2 Future Project Development costs are down by $0.6M due to decrease in planning activities related to future corridors and system planning; primarily due to completion of project development for the Tempe Streetcar capital project. 3 Northwest Extension Phase I base project costs are down by $46.0M due to completion of the construction portion of the project and commencement of passenger operations in March of 2016. 4 Central Mesa Extension base project costs are down by $10.9M. Remaining activity in FY17 is related to the train signal control system upgrade. 5 Gilbert Road LRT Extension project construction to commence in FY17, along with the purchase of Light Rail Vehicles. Annual expenditures forecasted at $58.0M. 6 Tempe Streetcar design and pre-construction activities commence. forecasted at $9.5M. 7 50th Street LRT Station preliminary design and ROW acquisition work continues with construction to commence in FY17. 8 South Central Capital Project pre-construction activities to begin in FY17. Annual design and project management expenditures forecasted at $39.4M. 9 Non-prior rights utilities relocations up by $1.7M due to increased activity for construction projects. FY17 amounts include Tempe Streetcar ($0.5M), 50th Street LRT Station ($0.6M), and Gilbert Road Extension ($2.0M). No FY17 City of Mesa funding for Central Mesa Extension Concurrent Non-Project Activities (CNPA). 10 11 Annual expenditures Systemwide Improvements include the purchase of 8 light rail vehicles for future extensions ($6.0M), LRV overhauls ($4.7M), improvements for station lighting and railing, security camera component upgrades, ticket vending machine upgrades and other activities ($5.6M). 8 Note Budget Analysis - Sources of Funds 12 Fare revenue increases from $14.0M to $15.9M; assumes 17.3 million rides with an average fare forecasted to be $0.92 per ride in FY17. Ridership grows with addition of 6 miles of service for full 12 months. Average fare increase due to fare pricing adjustment anticipated in late 2017, pending Board approval. 13 With Tempe Streetcar project moving into capital phase, no Federal CMAQ project development funds programmed for FY17. 14 Project Development Federal TIGER funds down by $1.3M due to South Central entering into preconstruction activity in FY17, which will be funded by City of Phoenix within the capital project budget. 15 Member City contributions for Operations are up from $26.3M to $31.1M in FY17 due to operating 12 months of the base service along with the Central Mesa and Northwest Extensions ($3.3M net of revenues), an additional $1.3M of future project development activities, primarily related to South Central Corridor project in Phoenix, and $0.2M increase for agency operations. 16 PTF Sales Tax revenue funding requirements for project development are up by $0.9M, primarily related to Northwest Phase II, West Phoenix-Central Glendale and Phoenix I-10 Capitol projects. 17 No Federal New Starts funds programmed for FY17. Activity in FY16 was to complete the Central Mesa Extension project. New Starts funds for the Tempe Streetcar are anticipated in FY18. 18 Federal CMAQ increasing by $58.7M due to increasing funding requirements for construction activity. FY17 programmed activity includes Central Mesa Extension SCADA ($3.7M), Gilbert Road ($54.7M), Tempe Streetcar ($7.6M), Systemwide Improvements ($4.9M), and Non Prior Rights Utilities ($2.3M) 19 Member City contributions for Capital Projects total $49.2M for FY17. Project amounts for FY17 include South Central funding by Phoenix ($39.4M), 50th Street Station funding by Phoenix ($5.8M), Gilbert Road Extension funding by Mesa ($3.3M), and Non Prior Rights Utilities ($0.7M). 20 In June of 2017, the City of Phoenix will be repaid $60.0M in advances the City made in FY 13 and FY 14 to accelerate completion of the NW Extension. Funding is from Public Transportation Funds. 21 It is anticipated that RPTA will issue $60.0M series 2017 bonds to support rail capital projects in the spring of 2017. Consumption of bond proceeds is estimated at $43.1M in FY17. 22 PTF Sales Tax funding will be reduced from $59.9M to $34.1M primarily due to construction activity winding down for Northwest and Central Mesa Extensions, offset by increased funding requirements for Tempe Streetcar and Systemwide Improvements. 9 Agency Staff Overview Valley Metro RPTA and Valley Metro Rail budgets are developed with a unified staff plan, with department managers planning the level of effort required to meet the bus and rail activities. For FY17, there are 310 employees budgeted in the integrated agency; 131 FTE’s are budgeted to RPTA activities; 179 to VMR activities. Staffing levels are reviewed on an annual basis with zero-base analysis of level of effort requirements to fulfill work requirements in the five-year period commencing with the beginning of the new fiscal year. Salary and fringe benefit compensation levels are measured against comparable regional agencies, member cities and peer transit agencies located in the western U.S. FY17 Compensation and Fringe Benefit Assumptions Total compensation budget is based on a 2.5% increase. For staff salary changes, merit increases are based on employee performance. Division level control is in place to contain total salary and fringe costs within budget. With new positions, overall increase is 3%. Agency health care costs will increase. Program design adjustments are in place to hold total agency fringe benefit cost increases to within 3% of FY16 levels. Staffing cost analysis FY 17 FY 16 change pct change $ million Salaries Fringe Benefits Total Salary and Fringe Benefits Analysis of changes 19.6 18.8 0.8 4% 7.6 7.5 0.1 2% 27.2 26.3 0.9 3% Salary Base Compensation FY16 Base increase Position Changes New Base Compensation FY17 Fringe 18.8 0.5 0.3 19.6 7.5 0.1 7.6 Change FY17 Adopted Budget vs. FY16 Adopted Budget Total 26.3 0.5 0.4 27.2 0.9 $ million Five new agency positions are planned to improve internal controls and strengthen fixed route bus and accessible transit contractor performance, as noted below. Title Division Scope of Work Manager, Internal Audit Chief Executive Office Internal Audit Specialist Chief Executive Office Agency Internal Controls with primary reporting to Board Internal Control testing and compliance Program Representative Planning & Accessible Transit Support East Valley, West Valley, and regional paratransit Scheduler Program Coordinator Fixed Route Bus schedule analysis and management Fixed Route Bus contractor performance management Operations and Maintenance ‐ RPTA Operations and Maintenance ‐ RPTA 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 2017 – FY 2021 Five-Year Operating and Capital Program (page 23) will be completed and submitted to the Board of Directors for approval along with the FY 2017 Operating and Capital Budget. DETAIL VALLEY METRO RAIL OPERATING AND CAPITAL PROJECTS VMR’s operating and capital activities are broken down into projects. The following pages identify the Sources and Uses of Funds for each project. 11 FY17 Adopted VMR Revenue Operations Budget FY16 Amended 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 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 $ $ Allocation of Operating Costs Phoenix Base Costs Regional Security 63.811% Less Fares,Advertising & Fed PM Distributed Phoenix Net Contribution Tempe Base Costs Regional Security Local Security 21.433% Less Fares,Advertising & Fed PM Distributed Tempe Net Contribution Mesa Base Costs Regional Security 14.759% Less Fares,Advertising & Fed PM Distributed Mesa Net Contribution Total Operating Costs 2,153,000 8,507,000 3,359,000 1,143,000 111,000 573,000 192,000 3,456,000 14,295,000 5,556,000 70,000 39,415,000 9,202,000 918,000 10,085,000 3,902,000 2,752,000 1,979,000 2,243,000 838,000 1,591,000 2,929,000 193,000 1,903,000 600,000 280,000 39,415,000 $ $ $ $ $ $ $ $ $ $ 2,331,000 9,828,000 3,751,000 1,197,000 137,000 766,000 197,000 3,980,000 17,285,000 5,348,000 70,000 44,890,000 9,475,000 870,000 11,296,000 4,755,000 3,106,000 2,766,000 2,729,000 891,000 1,905,000 3,086,000 428,000 1,721,000 1,270,000 592,000 44,890,000 $ 21,761,000 2,303,000 24,064,000 (9,768,000) 14,296,000 8,432,000 962,000 70,000 9,464,000 (3,838,000) 5,626,000 $ 5,320,000 567,000 5,887,000 (2,430,000) 3,457,000 $ 39,415,000 12 FY17 Adopted Budget $ $ $ $ $ Amount Increase/ (Decrease) $ $ $ $ 178,000 1,321,000 392,000 54,000 26,000 193,000 5,000 524,000 2,990,000 (208,000) 5,475,000 273,000 (48,000) 1,211,000 853,000 354,000 787,000 486,000 53,000 314,000 157,000 235,000 (182,000) 670,000 312,000 5,475,000 $ 25,605,000 3,039,000 28,644,000 (11,359,000) 17,285,000 8,538,000 1,013,000 70,000 9,621,000 (4,203,000) 5,418,000 $ $ $ $ $ 5,922,000 703,000 6,625,000 (2,644,000) 3,981,000 $ $ $ 44,890,000 $ 3,844,000 736,000 4,580,000 (1,591,000) 2,989,000 106,000 51,000 157,000 (365,000) (208,000) 602,000 136,000 738,000 (214,000) 524,000 5,475,000 FY17 Adopted Future Project Development Budget FY16 Amended Budget Sources of Funds Chandler Phoenix Glendale MAG RPTA (RARF/Other) PTF Revenue Sales Tax TIGER 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 $ $ 250,000 1,788,000 500,000 500,000 5,564,000 1,488,000 1,451,000 11,541,000 2,719,000 258,000 25,000 145,000 92,000 4,855,000 725,000 1,000,000 8,000 57,000 61,000 30,000 27,000 5,000 6,000 22,000 5,000 1,501,000 11,541,000 FY17 Adopted Budget $ $ $ $ 239,000 2,492,000 644,000 500,000 500,000 6,417,000 175,000 10,967,000 2,668,000 232,000 5,399,000 386,000 680,000 6,000 46,000 51,000 28,000 12,000 3,000 4,000 5,000 1,448,000 10,967,000 Amount Increase/ (Decrease) $ $ $ $ (11,000) 704,000 644,000 853,000 (1,313,000) (1,451,000) (574,000) (51,000) (26,000) (25,000) (145,000) (92,000) 544,000 (339,000) (320,000) (2,000) (11,000) (10,000) (2,000) (15,000) (5,000) (3,000) (18,000) (53,000) (574,000) * South Central ($2.1M) to be funded by Phoenix ($1.9M) and $175,000 by TIGER Grant * Northwest Phase II EA/ACE to be funded with PTF ($839,000) * West Phoenix/Glendale Corridor Alternatives Analysis is anticipated to be funded with PTF ($711,000) * West Glendale Feasibility Study ($644,000) to be funded by Glendale * Capitol/I-10 West Phase I is anticipated to be funded with PTF ($474,000) * Fiesta/Downtown Chandler Transit Corridor Study ($239,000) to be funded by Chandler * Northeast Corridor feasibility study to be funded with COP advance ($529,000) * 16th Street Advanced Feasibility Study ($60,000) to be funded by Phoenix * OMC Master Plan and Phasing Study funded with PTF ($175,000) 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 FY17 Adopted Agency Operating Budget FY16 Amended 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 Bank Charges Agency Overhead Allocation $ $ FY17 Adopted Budget 23,000 23,000 173,000 454,000 236,000 909,000 $ 369,000 33,000 125,000 17,000 45,000 1,000 2,000 63,000 19,000 37,000 198,000 909,000 $ $ $ Amount Increase/ (Decrease) 32,000 32,000 195,000 541,000 281,000 1,081,000 $ 543,000 47,000 37,000 11,000 20,000 1,000 2,000 41,000 23,000 50,000 5,000 301,000 1,081,000 $ $ $ 9,000 9,000 22,000 87,000 45,000 172,000 174,000 14,000 (88,000) (6,000) (25,000) (22,000) 4,000 13,000 5,000 103,000 172,000 Note: The Cities of Chandler and Glendale contribute $50,000 each annually to VMR. $32,000 is applied to Agency Operating funds and the balance of the funds are held by VMR 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. In FY17, an Internal Audit function has been added with direct reporting relationship to the Audit and Finance Subcommittee of the Board of Directors. 14 FY17 Adopted Agency Overhead Allocation FY16 Amended Budget Allocation of Costs Revenue Operations Future Projects Agency Operating Northwest Extension Central Mesa Gilbert Road Tempe South Capitol/I-10 West 50th Street LRT Station South Central Capital Project NPR Utilities $ 614,000 1,504,000 198,000 350,000 215,000 213,000 87,000 93,000 24,000 3,298,000 $ Expenditures Salaries & Fringes RPTA Overhead Building Rent Building Rent Sublease IT Services and Consultants Equipment Leases Office Supplies Telecommunication Services Employee Development Vehicle Related Other Office Expense Computer/Software/Equipment LRT project capital outlay $ 1,126,000 108,000 1,529,000 (705,000) 291,000 43,000 106,000 78,000 188,000 25,000 29,000 419,000 61,000 3,298,000 $ FY17 Adopted Budget $ $ $ $ 693,000 1,499,000 252,000 25,000 59,000 378,000 296,000 140,000 19,000 22,000 3,383,000 1,125,000 98,000 826,000 177,000 138,000 166,000 142,000 31,000 73,000 569,000 38,000 3,383,000 Amount Increase/ (Decrease) $ $ $ $ 79,000 (5,000) 54,000 (325,000) (156,000) 165,000 209,000 (93,000) 140,000 19,000 (2,000) 85,000 (1,000) (10,000) (703,000) 705,000 (114,000) (43,000) 32,000 88,000 (46,000) 6,000 44,000 150,000 (23,000) 85,000 Agency overhead costs include general and administrative costs of Valley Metro Rail, Inc. which are directly allocable to passenger operations, future project development and to capital projects. Expenditures include human resource costs for information technology, accounting and procurement, office building, supplies and equipment, computer software maintenance and offsite hosting. Overhead costs are allocated based on ratios of actual wage expended for VMR operating and capital projects. 15 FY17 Adopted Northwest Extension Phase I Budget FY16 Amended Budget Sources of Funds PTF Revenue Bonds PTF Revenue Sales Tax Less Repayment Phoenix NW Advance $ $ Expenditures Salaries and Fringe Benefits RPTA Overhead Consulting COP Liaison Consultants - PM/CM Consultants - Planning Support Contractor - CM At Risk City Construction Management Consultants - Engineering Consultants - Art Design Consultants - Other Consultants - Utility Relocation Business Assistance Real estate acquisition Printing Postage Public meetings & information Other direct expenditures LRT project office expense Local meetings & mileage NWX Advance - Interest LRT project capital outlay Agency Overhead Allocation $ $ 16 49,178,000 49,178,000 681,000 65,000 5,000 3,051,000 30,000 33,596,000 8,050,000 363,000 320,000 340,000 85,000 150,000 1,783,000 10,000 5,000 2,000 165,000 30,000 3,000 94,000 350,000 49,178,000 FY17 Adopted Budget $ $ $ $ 43,098,000 20,105,000 (60,000,000) 3,203,000 45,000 4,000 95,000 24,000 10,000 3,000,000 25,000 3,203,000 Amount Increase/ (Decrease) $ $ $ $ 43,098,000 (29,073,000) (60,000,000) (45,975,000) (636,000) (61,000) (5,000) (2,956,000) (30,000) (33,596,000) (8,050,000) (363,000) (320,000) (316,000) (85,000) (150,000) (1,783,000) (10,000) (5,000) (2,000) (165,000) (20,000) (3,000) 3,000,000 (94,000) (325,000) (45,975,000) FY17 Adopted Central Mesa HCT Capital Project FY16 Amended Budget Sources of Funds PTF Revenue Sales Tax FTA Section 5309 CMAQ $ $ Expenditures Salaries and Fringe Benefits RPTA Overhead Consultants - PM/CM Consultants - Planning Support Contractor - Design Build City Construction Management Consultants - Construction Admin. Consultants - Art Design Consultants - Other Real estate acquisition Business Assistance Printing Postage Public meetings & information Other direct expenditures Software licenses/Maintenance agreements LRT project office expense Local meetings & mileage Business Travel LRT project capital outlay Agency Overhead Allocation $ $ FY17 Adopted Budget 6,074,000 7,084,000 2,391,000 15,549,000 $ 451,000 43,000 1,506,000 25,000 11,090,000 383,000 418,000 155,000 348,000 397,000 100,000 5,000 1,000 2,000 153,000 67,000 123,000 5,000 5,000 57,000 215,000 15,549,000 $ $ $ Amount Increase/ (Decrease) 934,000 3,739,000 4,673,000 $ 117,000 10,000 4,479,000 7,000 60,000 4,673,000 $ $ $ (5,140,000) (7,084,000) 1,348,000 (10,876,000) (334,000) (33,000) (1,506,000) (25,000) (6,611,000) (383,000) (418,000) (155,000) (341,000) (397,000) (100,000) (5,000) (1,000) (2,000) (153,000) (67,000) (123,000) (5,000) (5,000) (57,000) (155,000) (10,876,000) FY17 Mesa Extension - Concurrent Non-Project Activities (CNPA) Budget FY17 Adopted Budget FY16 Amended Budget Amount Increase/ (Decrease) Sources of Funds PTF Revenue Sales Tax Mesa Expenditures Contractor - Design Build $ $ $ 76,000 245,000 321,000 $ $ 321,000 321,000 $ $ 17 - $ $ - $ (76,000) (245,000) (321,000) - $ $ (321,000) (321,000) - FY17 Adopted Gilbert Road Extension FY16 Amended Budget Sources of Funds 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 Data/Telecommunications Advertising Printing Postage Public meetings & information Other direct expenditures Computer unit cost under 5K LRT project office expense Software Licenses/Maintenance Local meetings & mileage Business Travel LRT project capital outlay Agency Overhead Allocation $ $ 18 FY17 Adopted Budget 656,000 10,860,000 11,516,000 $ 402,000 38,000 1,123,000 10,000 5,921,000 1,000,000 424,000 110,000 382,000 1,000,000 150,000 250,000 7,000 20,000 15,000 6,000 2,000 107,000 107,000 5,000 3,000 221,000 213,000 11,516,000 $ $ $ Amount Increase/ (Decrease) 3,305,000 54,679,000 57,984,000 $ 783,000 68,000 3,819,000 25,000 1,618,000 29,538,000 1,178,000 621,000 476,000 9,375,000 150,000 9,415,000 236,000 7,000 6,000 23,000 15,000 6,000 23,000 25,000 10,000 89,000 6,000 4,000 90,000 378,000 57,984,000 $ $ $ 2,649,000 43,819,000 46,468,000 381,000 30,000 2,696,000 15,000 (4,303,000) 28,538,000 754,000 511,000 94,000 8,375,000 9,165,000 236,000 7,000 (1,000) 3,000 21,000 25,000 (97,000) (18,000) 1,000 1,000 (131,000) 165,000 46,468,000 FY17 Adopted Tempe Streetcar HCT Capital Project FY16 Amended Budget Sources of Funds PTF Revenue Sales Tax CMAQ $ $ Expenditures Salaries and Fringe Benefits RPTA Overhead Consultants - PM/CM Consultant-Planning Support Consultants - Design & Construction Support Contractor - Design Build Contractor - CM At Risk City Construction Management Consultants - Art Design Consultants - Other Pothole Program Consultants - Utility Relocation Consultants - Vehicle Design/Procurement Business Assistance Community Advisory Board LRT project capital outlay Business Travel Other direct expenditures Agency Overhead Allocation $ $ 19 FY17 Adopted Budget 240,000 958,000 1,198,000 $ 154,000 15,000 550,000 125,000 50,000 50,000 75,000 75,000 17,000 87,000 1,198,000 $ $ $ Amount Increase/ (Decrease) 1,895,000 7,581,000 9,476,000 $ 609,000 53,000 216,000 3,420,000 1,000,000 200,000 175,000 249,000 100,000 2,500,000 150,000 300,000 100,000 4,000 104,000 296,000 9,476,000 $ $ $ 1,655,000 6,623,000 8,278,000 455,000 38,000 (550,000) 216,000 3,295,000 (50,000) 1,000,000 150,000 175,000 249,000 (75,000) 25,000 2,483,000 150,000 300,000 100,000 4,000 104,000 209,000 8,278,000 FY17 Adopted 50th Street LRT Station Capital Project FY16 Amended Budget Sources of Funds Phoenix Expenditures Salaries and Fringe Benefits RPTA Overhead Business Assistance Consultants - PM/CM Consultants - Design & Construction Support Contractor-CM@R City Construction Management Consultants - Art Design Consultants - Other Real Estate/ROW Acquisition Advertising Printing Postage Public meetings & information Other direct expenditures (materials) Local meetings & mileage LRT project capital outlay Agency Overhead Allocation FY17 Adopted Budget Amount Increase/ (Decrease) $ $ 747,000 747,000 $ $ 5,780,000 5,780,000 $ $ 5,033,000 5,033,000 $ 55,000 129,000 27,000 536,000 747,000 $ 253,000 22,000 60,000 654,000 1,364,000 1,462,000 954,000 76,000 58,000 642,000 3,000 10,000 3,000 4,000 22,000 3,000 50,000 140,000 5,780,000 $ 253,000 22,000 60,000 599,000 1,364,000 1,462,000 825,000 76,000 31,000 642,000 3,000 10,000 3,000 4,000 (514,000) 3,000 50,000 140,000 5,033,000 $ $ $ FY17 Adopted South Central Capital Project FY16 Amended Budget Sources of Funds Phoenix Expenditures Salaries and Fringe Benefits RPTA Overhead Consultants - Other Agency Overhead Allocation FY17 Adopted Budget Amount Increase/ (Decrease) $ $ - $ $ 39,417,000 39,417,000 $ $ 39,417,000 39,417,000 $ - $ 58,000 5,000 39,335,000 19,000 39,417,000 $ 58,000 5,000 39,335,000 19,000 39,417,000 $ 20 $ $ FY 2017 Adopted Non-Prior Rights Utilities Relocation Budget FY16 Amended Budget Sources of Funds City of Mesa Phoenix CMAQ PTF Revenue Sales Tax $ 17,000 283,000 1,167,000 1,467,000 $ Expenditures Salaries and Fringe Benefits RPTA Overhead Tempe Streetcar NPR Utilities 50th St LRT Station NPR Utilities Northwest Extension NPR Utilities Gilbert Rd Extension NPR Utilities Agency Overhead Allocation $ 42,000 4,000 1,097,000 300,000 24,000 1,467,000 $ FY17 Adopted Budget $ $ $ $ Amount Increase/ (Decrease) 114,000 621,000 2,285,000 165,000 3,185,000 $ 39,000 3,000 500,000 621,000 2,000,000 22,000 3,185,000 $ $ $ 97,000 621,000 2,002,000 (1,002,000) 1,718,000 (3,000) (1,000) 500,000 621,000 (1,097,000) 1,700,000 (2,000) 1,718,000 FY 2017 Adopted Systemwide Improvements FY16 Amended Budget Sources of Funds Federal 5337 SOGR PTF Revenue Sales Tax CMAQ $ 341,000 3,156,000 3,497,000 $ Expenditures Consultants - Other Light Rail Vehicles Systemwide Capital $ 3,000 3,494,000 3,497,000 $ 21 FY17 Adopted Budget $ $ $ $ 341,000 11,014,000 4,950,000 16,305,000 6,000,000 10,305,000 16,305,000 Amount Increase/ (Decrease) $ $ $ $ 7,858,000 4,950,000 12,808,000 (3,000) 6,000,000 6,811,000 12,808,000 FY 2017 Adopted Scheduled Capital Debt Service FY16 Amended Budget Sources of Funds PTF Revenue Sales Tax Expenditures Debt Service - Interest Debt Service -Principal FY17 Adopted Budget Amount Increase/ (Decrease) $ $ 19,360,000 19,360,000 $ $ 20,559,000 20,559,000 $ $ 1,199,000 1,199,000 $ 7,742,000 11,618,000 19,360,000 $ 8,366,000 12,193,000 20,559,000 $ 624,000 575,000 1,199,000 $ $ $ *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. 22 Funds Flow Fiscal Year 2017 $Thousands Adopted Funds Flow - Fiscal Year 2017 ($ Thousands) Funding Sources Fare Revenue: Phoenix Tempe Mesa Advertising Revenue: Phoenix Tempe Mesa Phoenix Tempe Mesa Glendale Chandler Federal 5337 SOGR Federal CMAQ Federal 5307 PM Regional PTF Sales Tax Regional PTF Revenue Bonds RPTA MAG Arranged Funding Other Funding TOTAL FUNDING Central Mesa $ - Northwest Extension Tempe Streetcar $ $ - - Gilbert Road $ - 50th Street LRT Station $ (60,000) 5,780 3,739 7,581 934 $ 4,673 20,105 43,098 $ 3,203 - South Central $ - 39,417 9,476 $ - 621 3,305 114 54,679 341 7,236 1,895 $ Other Capital 11,179 $ 57,984 23 $ 5,780 $ 39,417 $ 19,490 Operations & Proj. Dev. $ 9,828 3,751 2,331 766 197 137 20,318 5,699 4,175 676 271 Total Funding $ 9,828 3,751 2,331 500 500 175 766 197 137 6,136 5,699 7,594 676 271 341 73,235 1,197 40,530 43,098 500 500 175 $ 56,938 $ 196,961 1,197 6,417 Five – Year Operating Forecast and Capital Program FY 2017 – FY 2021 24 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. In 2015 the City of Phoenix voters approved Prop 104 providing transportation funding. Based on City of Phoenix projections, the map below shows projects moving forward in advance of the current Transit Life Cycle Plan. 25 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 selfperforming core systems maintenance including track, power, signals and communication systems. Future Project Planning and Development: The proposed high capacity/light rail transit system will include over 66 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. 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 2017 through FY 2021, are summarized as follows: Uses of Funds Five Year Total LRT Operations & Maintenance Project Development Planning Agency Operating Budget $ ($,000) 251,700 44,013 5,746 301,459 3,203 8,599 130,099 161,679 419,829 17,689 167,682 64,315 102,186 23,716 64,349 Subtotal - Operations and Project Development Northwest Extension Phase 1 Central Mesa Gilbert Rd Tempe Streetcar South Central 50th Street Station Northwest Phase 2 Capitol I-10 West West Phoenix Central Glendale Non-Prior Rights Utilities Relocation Systemwide Improvements 1,163,346 Subtotal - Capital Total Uses $ 27 1,464,805 Sources of Funds: The cumulative sources of funds, FY 2017 through FY 2021, are summarized as follows: Sources of Funds Five Year Total LRT Fares Advertising ($,000) $ 95,080 5,840 Member City Contributions: Phoenix Less Repayment Phoenix NW Advance Tempe Mesa Glendale Chandler 618,521 (60,000) 47,886 29,913 15,877 393 Regional Funding: MAG / RPTA PTF (Reserve) / Bond Borrowing PTF Sales Tax Revenue (Allocation 43.24%) 5,000 52,759 207,616 TPAN 70,992 Federal Funding: FTA Section 5309 CMAQ Federal 5307 PM TIGER Federal 5337 SOGR Total Sources $ 28 177,962 184,309 6,677 175 5,802 1,464,805 Table 1–Five-Year Capital Program and Operating Forecast Summary ($000) 2017 2018 2019 2020 Cumulative 2017 - 2021 2021 USES OF FUNDS LRT Operations & Maintenance Project Development Planning Agency Operating Budget $ $ 56,938 3,203 4,673 57,984 9,476 39,417 5,780 3,185 16,305 Subtotal - Operations and Proj Dev Northwest Extension Phase 1 Central Mesa Gilbert Rd Tempe Streetcar South Central 50th Street Station Northwest Phase 2 Capitol I-10 West West Phoenix Central Glendale Non-Prior Rights Utilities Relocation Systemwide Improvements 46,484 11,532 1,115 $ 59,131 3,926 56,653 48,872 124,687 8,634 3,055 5,089 8,174 22,438 140,023 Subtotal - Capital Total Uses 44,890 10,967 1,081 49,390 7,087 1,148 $ 57,625 14,153 73,296 98,336 3,275 29,032 5,089 6,274 22,000 281,528 53,940 6,953 1,183 $ 62,076 1,309 30,035 89,080 66,415 11,557 2,744 2,126 251,455 56,996 7,474 1,219 $ 65,689 68,309 69,180 42,580 102,186 3,339 1,480 203,266 251,700 44,013 5,746 301,459 3,203 8,599 130,099 161,679 419,829 17,689 167,682 64,315 102,186 23,716 64,349 287,074 1,163,346 $ 196,961 $ 340,658 $ 309,080 $ 265,343 $ 352,763 $ $ 66,136 (60,000) 5,699 7,598 676 271 1,000 21,380 $ 156,055 12,515 4,370 387 31 1,000 174,357 $ 146,716 12,592 5,563 32 32 1,000 165,934 $ 124,627 7,747 6,111 30 30 1,000 139,544 $ 124,987 9,333 6,271 14,752 30 1,000 156,375 $ 1,464,805 SOURCES OF FUNDS Phoenix Less Repayment Phoenix NW Advance Tempe Mesa Glendale Chandler MAG / RPTA Subtotal PTF Sales Tax Revenue (Allocation 43.24%) PTF (Reserve) / Bond Borrowing PTF Regional Revenue - Demand TPAN Funds LRT Fares Advertising FTA Section 5309 CMAQ Federal 5307 PM TIGER Federal 5337 SOGR Total Sources $ 40,478 43,086 83,565 15,909 1,100 73,294 1,197 175 341 196,961 $ 36,425 (1,370) 35,055 55,430 17,257 1,133 19,921 35,837 1,329 341 340,658 $ 39,984 5,978 45,962 14,253 18,482 1,167 38,995 20,019 1,356 2,912 309,080 $ 43,483 (9,481) 34,002 1,309 21,320 1,202 55,485 9,846 1,383 1,251 265,343 $ 47,246 14,547 61,792 22,112 1,238 63,561 45,313 1,412 959 352,763 $ 618,521 (60,000) 47,886 29,913 15,877 393 5,000 657,592 207,616 52,759 260,376 70,992 95,080 5,840 177,962 184,309 6,677 175 5,802 1,464,805 Note: Negative sources of funds reflect reimbursements to City of Phoenix for the Northwest Extension Advance (source of funding is Public Transportation Fund and Federal grant revenue reimbursements). 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 2017 through FY 2021 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 TIGER RPTA/MAG/ CMAQ / STP Total Sources $ $ $ ($,000) 95,079 5,841 90,818 34,886 26,326 1,155 393 153,578 $ 30 ($,000) 251,700 44,013 5,746 301,459 31,667 6,679 175 8,440 301,459 Table 2 – Five-Year Operating Forecast - - - - - - - - - - - - - - - - - - -Year of Expenditure ($,000) - -- - - - - - - 2017 USES OF FUNDS $ Operations and Maintenance Project Development Planning Support Agency Operating Budget Total Uses 44,890 10,967 1,081 56,938 2018 $ 46,484 11,532 1,115 59,131 2019 $ 49,390 7,087 1,148 57,625 2020 $ 53,940 6,953 1,183 62,076 2021 $ TOTAL 56,996 7,474 1,219 65,689 $ 251,700 44,013 5,746 301,459 SOURCES OF FUNDS LRT Fares: Phoenix Tempe Mesa Subtotal Fares Other Revenues: Phoenix Tempe Mesa Glendale Chandler Advertising Subtotal Local Revenues 9,828 3,751 2,331 15,909 11,028 3,677 2,551 17,257 11,264 3,756 3,463 18,482 11,945 5,214 4,161 21,320 11,847 6,139 4,126 22,112 55,911 22,537 16,631 95,079 20,318 5,699 4,175 676 271 1,100 32,239 17,599 6,015 4,206 387 31 1,133 29,370 17,815 6,092 5,563 32 32 1,167 30,700 17,300 7,747 6,111 30 30 1,202 32,419 17,786 9,333 6,271 30 30 1,238 34,691 90,818 34,886 26,326 1,155 393 5,841 159,420 Capital Planning Funds - PTF 6,417 8,536 6,087 5,353 5,274 31,667 500 500 175 1,197 56,938 500 500 1,329 1,640 59,131 500 500 1,356 57,625 500 500 1,383 600 62,076 500 500 1,412 1,200 65,689 2,500 2,500 175 6,679 3,440 $ 301,459 MAG RPTA TIGER Federal 5307 PM CMAQ Total Sources $ $ $ $ 5-Year Operating Assumptions:  Gilbert Rd opens revenue service in November 2018  Tempe Streetcar opens revenue service in December 2019 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) In accordance with the regional fare policy to achieve a 25% fare recovery ratio, fare discount structure changes are projected for FY17 to increase average fare by 5%. Within the 5 year plan, a base fare increase is anticipated. 32 Table 3 – Rail Operations and Maintenance Cost Forecast FY 2017 through 2021 - - - - - - - - - - - - -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 MOW 5 year plan HIDE after updated Systems and Facilities Maintenance Total Administration Property and General Liability Insurance VMR Management General & Administrative Costs Contingency Reserve Administration Total TOTAL OPERATING COSTS FY 2017 $ FY 2018 FY 2019 FY 2020 11,296,000 4,755,000 3,106,000 19,157,000 $ 19,513,000 $ 20,997,000 $ 23,509,000 $ 4,624,000 $ 2,690,000 424,000 (349,000) 7,389,000 $ 5,025,000 $ 2,739,000 471,000 (359,000) 7,876,000 $ 5,337,000 $ 2,902,000 289,000 (370,000) 8,158,000 $ 5,697,000 $ 3,162,000 388,000 (381,000) 8,866,000 $ 3,701,000 1,289,000 1,555,000 1,466,000 1,905,000 338,000 (108,000) 401,000 10,547,000 $ 11,507,000 $ 12,215,000 $ 12,900,000 $ 13,580,000 $ 1,721,000 2,161,000 2,646,000 1,270,000 7,797,000 $ 7,588,000 $ 8,021,000 $ 8,665,000 $ 9,161,000 $ 44,890,000 $ 46,484,000 $ 49,390,000 $ 53,940,000 $ 56,996,000 $ $ $ $ $ $ In fiscal year 2017 the Central Mesa and Northwest alignments are in operations for the entire fiscal year. The total $44.9 million operating cost forecast in FY17 is composed of the following components:    FY 2021 Base 20 mile system Northwest Extension Central Mesa Extension $ 38.2 M $ 3.4 M $ 3.3 M The total $46.5 million operating cost forecast in FY 18 is composed of the following components:  Base 20 mile system $ 39.9 M  Northwest Extension $ 3.2 M  Central Mesa Extension $ 3.4 M 33 25,324,000 5,959,000 3,361,000 4,000 (393,000) 8,931,000 The total $49.4 million operating cost forecast in FY 19 is composed of the following components:  Base 20 mile system $ 40.9 M  Northwest Extension $ 3.3 M  Central Mesa Extension $ 3.5 M  Gilbert Rd Extension $ 1.7 M The total $53.9 million operating cost forecast in FY20 is composed of the following components:  Base 20 mile system $ 41.9 M  Northwest Extension $ 3.4 M  Central Mesa Extension $ 3.6 M  Gilbert Rd Extension $ 2.6 M  Tempe Streetcar $ 2.4 M The total $57.0 million operating cost forecast in FY 21 is composed of the following components:  Base 20 mile system $ 42.8 M  Northwest Extension $ 3.5 M  Central Mesa Extension $ 3.7 M  Gilbert Rd Extension $ 2.7 M  Tempe Streetcar $ 4.3 M 34 Table 4 – Rail Operations Fares and Member City Funding FY 2017 to FY 2021 Fiscal Year FY 17 Annual Ridership / Fares RIDERSHIP FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 17,292,518 17,863,171 19,132,571 20,063,971 20,809,571 0.92 0.97 0.97 1.06 1.06 AVG Fare Baseline Rides Weekday Saturday Sunday Total Baseline Rides Fare Assumption 13,147,143 $ 0.92 $ 12,095,372 $ 12,095,372 $ 13,119,245 $ 14,051,530 $ 16,209,136 $ 16,811,486 2,238,060 $ 0.92 2,059,015 2,059,015 2,233,311 2,392,016 2,759,308 2,861,847 1,907,315 $ 0.92 1,754,730 1,754,730 1,903,267 2,038,518 2,351,532 2,438,917 17,292,518 $ 0.92 $ 15,909,117 $ 15,909,117 $ 17,255,823 $ 18,482,064 $ 21,319,976 $ 22,112,250 OPERATING REVENUES Fare Revenues Phoenix Tempe Mesa Total Fare Revenues FY 2017 61.77% 23.58% 14.65% FY 2018 FY 2019 FY 2020 FY 2021 $ 9,827,600 $ 11,028,202 $ 11,263,844 $ 11,945,114 $ 11,846,582 3,750,745 3,677,116 3,755,686 5,214,192 6,139,319 2,330,772 2,550,505 3,462,534 4,160,670 4,126,350 $ 15,909,117 $ 17,255,823 $ 18,482,064 $ 21,319,976 $ 22,112,250 Fare Recovery Ratio 35% 37% 37% 40% 39% Advertising Revenue Phoenix Tempe Mesa 69.67% 17.91% 12.42% $ 1,100,000 $ 1,133,000 $ 1,166,990 $ 1,202,000 $ 1,238,060 766,348 789,339 769,393 792,475 754,990 197,006 202,916 194,457 200,291 288,897 136,646 140,745 203,139 209,234 194,173 Federal 5307 PM Phoenix Tempe Mesa 63.91% 21.31% 14.78% $ 1,197,000 $ 1,329,000 $ 1,356,000 $ 1,384,000 $ 1,413,000 765,003 849,364 826,411 775,425 757,011 255,074 283,202 275,549 338,483 392,310 176,923 196,433 254,041 270,093 263,679 Gross Operating Costs Phoenix Tempe Mesa Total Operating Costs Member City Funding Phoenix Tempe Mesa Total Member City Funding 63.81% 21.43% 14.76% $ 28,644,084 $ 29,707,943 $ 30,100,870 $ 30,221,525 $ 30,535,525 9,620,432 9,905,473 10,036,486 13,192,075 15,824,592 6,624,551 6,870,590 9,253,083 10,526,629 10,636,000 $ 44,889,068 $ 46,484,006 $ 49,390,438 $ 53,940,229 $ 56,996,118 64.78% 20.30% 14.92% $ 17,285,134 $ 17,041,038 $ 17,241,222 $ 16,708,511 $ 17,176,942 5,417,608 5,742,239 5,810,794 7,439,110 9,004,066 3,980,210 3,982,906 5,333,369 5,886,633 6,051,799 $ 26,682,952 $ 26,766,183 $ 28,385,384 $ 30,034,254 $ 32,232,808 TOTAL OPERATING REVENUE $ 44,889,068 $ 46,484,006 $ 49,390,438 $ 53,940,229 $ 56,996,118 Fare revenue is forecasted to grow from FY 17 through FY 21 with a combination of increased ridership and increased fare structure. Baseline ridership is forecasted to grow by 4% per year. Additional passenger rides are developed in FY 17 through FY 21 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 2017 to FY 2021 2017 - - - - - - - - - - - - - - - - - - - - - (YOE $,000) - - - - - - - - - - - - - - - - - - - - - 2018 2019 2020 2021 Total USES OF FUNDS Capitol/I-10 West $ Capitol/I-10 West Phase II West Phoenix/Central Glendale Northeast Phoenix South Central Fiesta/Downtown Chandler Northwest Phase II 16th Street Advanced Feasibility Study West Glendale Feasibility Study OMC Master Plan and Phasing Study (PTF) Systems Planning & Project Development Capital Project Development Administration Total Uses 474 711 529 2,077 239 839 60 644 175 3,801 $ 2,050 3,000 750 356 3,915 $ 1,418 $ 10,967 1,461 $ 11,532 $ $ $ $ 100 1,250 200 4,032 1,505 7,087 $ $ 750 500 4,153 1,550 6,953 $ $ 1,600 4,278 1,596 7,474 $ $ 2,524 2,450 5,461 529 2,077 239 1,789 60 1,000 175 20,179 7,530 44,013 SOURCES OF FUNDS Phoenix Chandler Glendale CMAQ TIGER PTF RARF RPTA MAG Total Sources 2,492 239 644 175 6,417 500 500 $ 10,967 356 1,640 8,536 500 500 $ 11,532 36 $ 6,087 500 500 7,087 $ $ 600 5,353 500 500 6,953 $ $ 1,200 5,274 500 500 7,474 $ $ 2,492 239 1,000 3,440 175 31,667 2,500 2,500 44,013 FIVE-YEAR CAPITAL PROGRAM – FY 2017 THROUGH FY 2021 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. South Central – 5 mile southern extension of the existing Valley Metro light rail line along Central and 1st Avenues in central Phoenix. 50th Street LRT Station – station will enhance mobility options by serving a regional facility for persons with disabilities and other developments in the area. Northwest Extension Phase 2- a 1.7 mile extension which will extend west on Dunlap Ave., north on 25th Ave. and across I-17 near Mountain View Rd. with a terminus on the west side of the freeway near Metrocenter Mall. West Phoenix Central Glendale - a 5 mile extension connecting the light rail system at 19th Avenue and Camelback Road in Phoenix with downtown Glendale at 58th Avenue and Glenn Drive Systemwide Improvements – Includes 8 additional light rail vehicles, fare technology improvements, 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 $1,163 million through the five-year planning horizon. These uses of funds are summarized as follows: FY 2017 THROUGH FY 2021 Uses of Funds - Capital Projects NW Ext Phase 1 Central Mesa Gilbert Rd Tempe Streetcar South Central 50th Street Station NW Phase 2 Capitol I-10 West West Phoenix Central Glendale Non-Prior Rights Utilities Relocation Systemwide Improvements Total Capital Costs ($,000) $ 3,203 8,599 130,099 161,679 419,829 17,689 167,682 64,315 102,186 23,716 64,349 $ 1,163,346 All Capital Projects -- Sources of Funds: Funding is derived from three primary sources: Regional Sales Taxes (Public Transportation Fund), Federal Grants, and member city contributions. These sources of funds are summarized as follows (see also Table 6, Five-Year Capital Program / All Projects): FY 2017 THROUGH FY 2021 Sources of Funds - Capital Projects ($,000) Phoenix Less Repayment Phoenix NW Advance Tempe Mesa Glendale PTF Regional Revenue - Demand TPAN Federal Revenues: CMAQ FTA Sec 5309 $ Total Capital Revenues $ 527,703 (60,000) 13,000 3,587 14,722 228,708 70,992 180,869 183,763 1,163,346 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) 2018 2017 USES OF FUNDS Northwest Extension Phase 1 Central Mesa Gilbert Rd Tempe Streetcar South Central 50th Street Station Northwest Extension Phase 2 Capitol I-10 West West Phoenix Central Glendale Subtotal HCT Corridors Non-Prior Rights Utilities Relocation Systemwide Improvements Total Capital Costs SOURCES OF FUNDS Phoenix Less Repayment Phoenix NW Advance Tempe Mesa Glendale Subtotal PTF Sales Tax Revenue (Allocation 43.24%) PTF (Reserve) / Bond Borrowing PTF Regional Revenue - Demand TPAN Federal Revenues: FTA CMAQ Subtotal Federal Total Revenues $ 3,203 4,673 57,984 9,476 39,417 5,780 120,533 $ 3,926 56,653 48,872 124,687 8,634 3,055 5,089 250,916 2019 $ 14,153 73,296 98,336 3,275 29,032 5,089 223,181 2020 $ 1,309 30,035 89,080 66,415 11,557 198,396 $ 2021 FY 2017-21 68,309 69,180 42,580 102,186 282,255 $ 3,203 8,599 130,099 161,679 419,829 17,689 167,682 64,315 102,186 1,075,281 3,185 16,305 $ 140,023 8,174 22,438 $ 281,528 6,274 22,000 $ 251,455 2,744 2,126 $ 203,266 3,339 1,480 $ 287,074 23,716 64,349 $ 1,163,346 $ $ 138,456 6,500 164 145,120 $ 128,901 6,500 135,401 $ 107,327 107,327 $ 107,201 14,722 121,923 $ 527,703 (60,000) 13,000 3,587 14,722 499,012 45,818 (60,000) 3,423 (10,759) 34,061 43,086 77,147 27,889 (1,370) 26,519 33,897 5,978 39,875 38,130 (9,481) 28,649 41,971 14,547 56,518 175,949 52,759 228,708 - 55,430 14,253 1,309 - 70,992 20,262 34,197 54,459 $ 281,528 41,907 20,019 61,926 $ 251,455 56,736 9,246 65,982 $ 203,266 341 73,294 73,635 $ 140,023 64,520 44,113 108,633 $ 287,074 183,763 180,869 364,632 $1,163,346 Transportation Excise Tax Revenue Bond issue by the Regional Public Transportation Authority (RPTA) in support of the rail capital program is anticipated as follows:  FY 2017 Approximately $60 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 66 miles of major high capacity/ light rail transit corridors to be implemented by 2034. Currently the 1.9 mile Gilbert Road extension to serve east Mesa is in final design. The 3.0-mile Tempe Streetcar project is in final design. City of Phoenix voters approved Proposition 104, a 35-year transportation plan that would expedite several miles of light rail/high capacity transit and add additional corridors to the regional high capacity transit system. Under the plan additional service areas are identified; 5.0-miles into south Phoenix, 5-miles west into West Phoenix and Central Glendale, 1.5-mile Capitol/I-10 West extension (phase I), an additional 9.5 miles Capitol/I10 West extension (phase II)., 12-miles into northeast Phoenix, and 5.5-mile ASU West corridor. Valley Metro is the agency charged with planning, designing, building and operating the light rail transit (LRT) system in the area. The timing of the projects in the program is depicted on the following schedule shown below: Funding for future projects has two phases: 1) Planning Budget Phase: Alternative Analysis and the draft environmental document are funded from Member City contributions, and PTF. 2.) Capital Budget Phase: After entry into Project Development and environmental clearance, 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 3.2mile 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. This extension began revenue service on March 19th, 2016. 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 $323.2 million, excluding financing costs. - - - - - - - ($,000) - - - Northwest Extension CAPITAL COSTS NPR Utilities Relocation Project Costs Financing Costs Total Capital Costs CAPITAL REVENUES Repayment Phx NW Advance Phoenix T 2000 Transit Tax PTF Revenue Total Local Total Capital Revenue Pre-2017 $ 24,889 298,152 $ 323,041 $ 60,000 89,690 173,351 323,041 $ 323,041 2017 $ $ 203 3,000 3,203 2018 $ $ 2019 - $ $ 2020 - $ $ 2021 - $ $ TOTAL - $ 24,889 298,355 3,000 $ 326,244 $(60,000) 63,203 3,203 $ - $ - $ - $ - $ $ $ - $ - $ - $ - $ 326,244 3,203 89,690 236,554 326,244 Concurrent Non-Project Activities Related to Northwest Extension: - - - - - - - ($,000) - - - CNPA Total CNPA Costs - WSD Pre-2017 $ 10,736 $ 2017 - $ 2018 - $ 2019 - $ 2020 - $ 2021 - $ TOTAL 10,736 $ $ - $ - $ - $ - $ - $ 10,736 REVENUES Phoenix 10,736 42 Central Mesa LRT Extension -- The Central Mesa LRT Extension improves mobility and provides additional capacity in the Main Street corridor in Mesa. In addition, the project connects 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 enhances 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. . 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 began revenue service on August 22, 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 2018 is budgeted to be approximately $190.4 million, excluding financing costs. - - - - - - - ($,000) - - - - - Central Mesa Extension CAPITAL COSTS NPR Utilities Relocation Project Costs Financing Costs Total Capital Costs CAPITAL REVENUES FTA Section 5309 CMAQ Total Federal Pre-2017 $ 2,854 178,969 6,100 $ 187,923 $ $ $ 75,000 43,956 118,956 $ 68,968 68,968 PTF Revenue Total Local Total Capital Revenue 2017 $ 187,923 2018 4,673 100 4,773 $ 3,738 3,738 $ $ 3,926 100 4,026 3,221 3,221 1,035 1,035 $ 4,773 2019 $ $ $ 805 805 $ 4,026 - - 2020 $ - $ $ - $ - 2021 $ $ $ $ - $ TOTAL - $ 2,854 187,568 6,300 $ 196,722 - $ 75,000 50,915 125,915 - 70,808 70,808 - $ 196,722 Concurrent Non-Project Activities Related to Central Mesa: - - - - - - - ($,000) - - - - - CNPA Total CNPA Costs Pre-2017 $ 7,568 $ 2017 - $ 2018 - $ 2019 - $ 2020 - $ 2021 - $ $ - $ - $ - $ - $ - 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 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 anticipated to be completed by the beginning of FY 2017. Pending FTA Small Starts approval, construction could be complete in FY20. 45 Tempe Streetcar Sources and Uses of Funds: The total capital cost of the Tempe Streetcar project over the FY 2017 to FY 2021 period is budgeted to be approximately $176.6 million. - - - - - - ($,000) - - - Tempe Streetcar Extension Pre-2017 CAPITAL COSTS NPR Utilities Relocation Project Costs $ Total Capital Costs CAPITAL REVENUES FTA Section 5309 CMAQ Total Federal Tempe PTF Revenue Total Local Total Capital Revenue 2017 2018 2019 1,198 $ 1,198 500 9,476 $ 9,976 $ 4,302 48,872 $ 53,174 $ 6,174 73,296 $ 79,470 2,744 30,035 $ 32,779 $ $ 7,981 7,981 $ 19,921 10,061 29,982 $ 38,995 38,995 $ 16,084 16,084 - 75,000 19,000 94,000 240 240 1,995 1,995 6,500 16,692 23,192 6,500 33,975 40,475 16,695 16,695 - 13,000 69,597 82,597 $ 1,198 $ 9,976 $ 53,174 $ 79,470 $ 32,779 - $ 176,597 958 958 $ 2020 $ 2021 $ $ - TOTAL $ 13,720 162,877 $ 176,597 $ $ Capitol / I-10 West Extension -- The Capitol / I-10 West Extension Phase I 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. In May 2012, the City of Phoenix Council adopted a locally preferred alternative (LPA), consisting of an 11-mile light rail transit project from the 79th Avenue Park-and-Ride (P&R) on I-10 to the existing light rail transit system in downtown Phoenix to be carried forward for environmental analysis. 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). In addition, the City of Phoenix passed an extension of their transportation tax (Proposition 104) that includes this extension. As a result of the passage of Proposition 104 the City of Phoenix is establishing priorities and is recommending this extension be constructed in two phases. Phase 1 would be from Downtown Phoenix to the State Capitol and be completed in 2023 and Phase 2 would extend out to 79th Avenue and be completed in 2030. The Environmental evaluation phase in compliance with the National Environmental Policy Act is anticipated to complete 46 in late 2016. Concurrent with the environmental analysis, Valley Metro Rail will generate detailed engineering designs of the selected alignment and station layouts. Capitol / I-10 West LRT Extension Capitol / I-10 West-Phase I Extension Sources and Uses of Funds: The total capital cost of the Capitol/I-10 West Extension Phase I project over the FY 2018 to FY 2021 period is budgeted to be approximately $67.7 million, excluding financing costs. - - - - - - ($,000) - - - Capitol/I-10 West Extension CAPITAL COSTS NPR Utilities Relocation Project Costs Financing Costs Pre-2017 $ Total Capital Costs $ CAPITAL REVENUES CMAQ Total Federal $ - $ - $ $ - PTF Revenue Total Local Total Capital Revenue 2017 $ - - - 2018 $ $ $ $ - 5,089 1,792 6,881 4,071 4,071 2019 $ $ $ 2,810 2,810 $ 6,881 47 $ 2020 $ 2021 TOTAL 5,089 1,792 6,881 11,557 1,792 $ 13,349 $ 3,339 42,580 1,792 $ 47,711 $ 4,071 4,071 $ 9,246 9,246 $ 34,064 34,064 $ 2,810 2,810 4,103 4,103 13,647 13,647 6,881 $ 13,349 $ 47,711 $ 3,339 64,315 7,168 74,822 51,452 51,452 23,370 23,370 $ 74,822 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-of-line station at Sycamore to Mesa Drive. This extension, known as the Central Mesa Extension, completed construction ahead of schedule and commenced passenger operations in August 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, with construction commencing in 2016. Passenger operations is scheduled to begin in November 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 $126.9 million, excluding financing costs and Operations and Maintenance Center contingency costs. - - - - - - ($,000) - - - - Gilbert Rd Extension CAPITAL COSTS NPR Utilities Relocation Project Costs Vehicle Procurement Total Capital Costs CAPITAL REVENUES City of Mesa TPAN CMAQ Flex Total Capital Revenue Pre-2017 2017 2018 $ 300 12,349 500 $13,149 $ 2,064 48,569 9,415 $60,048 $ 1,609 48,201 8,452 $58,262 $ 100 12,396 1,757 $ 14,253 1,309 $ 1,309 $ $ $ 3,423 56,625 $60,048 $ 164 55,430 2,668 $58,262 $ $ $ 749 12,400 $13,149 49 2019 14,253 $ 14,253 2020 $ 1,309 $ 1,309 2021 $ $ TOTAL - $ 4,073 122,824 20,124 $ 147,021 - $ 4,336 70,992 71,693 $ 147,021 South Central LRT Extension – The South Central Light Rail Extension will consist of an approximately 5-mile-long southern extension of the existing Valley Metro light rail line along Central and 1st Avenues in central Phoenix. The extension tracks would connect to the existing light rail system at Central Avenue and Washington Street in the northbound direction and at 1st Avenue and Jefferson Street in the southbound direction. The track would continue south along 1st and Central Avenues to Hadley Street, where the southbound track would follow the 1st Avenue one-way couplet curve to the east to rejoin Central Avenue. From Hadley Street to the extension’s southern terminus at Baseline Road, the tracks would operate bi-directionally along Central Avenue. The South Central Light Rail Extension Project is scheduled to begin operations in 2023. Additional track work improvements would be provided at the existing loop in Downtown Phoenix at McKinley Street and Central Avenue and McKinley Street and 1st Avenue. The additional track work at this location would help maintain system operations and provide operational flexibility during events that may cause guideway closures such as accidents, disabled light rail vehicles or loss of electrical power in the Downtown segment of the system. Similar track work would be provided at Sherman Street and Central Avenue. Together this would facilitate a short and efficient bus bridge through Downtown Phoenix in the event of a guideway closure. In conjunction with the South Central Light Rail Extension, Valley Metro plans to expand the existing Operations and Maintenance Center (OMC), located east of Phoenix Sky Harbor International Airport and southwest of the intersection of the Grand Canal and Loop 202. The OMC expansion would include modifications to the Maintenance of Equipment (MOE) building, storage tracks and cleaning platform. The MOE building modifications would consist of an approximately 23,000-square-foot expansion to the east with improvements/modifications to the existing mezzanine, office space, inspection pits and cranes. Expansion of vehicle storage would include construction of seven new storage tracks (north and south of the existing storage tracks) to increase total storage capacity to 100 vehicles. Finally, two new tracks and a second cleaning platform would be constructed south of the existing cleaning platform. The OMC expansion would occur within the existing facility boundaries; thus, no additional property would be required. The South Central Light Rail Extension will operate weekday trains at approximately 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. 50 South Central Light Rail Extension 51 South Central Light Rail Extension Sources and Uses of Funds: The total capital cost of the South Central project is estimated to be approximately $623 million (YOE), including financing costs. This extension is part of the Regional Transportation Plan and is planned to be funded by City of Phoenix Transit 2050 local sales tax and federal grants. The total capital cost of the project over the FY 2017 to FY 2021 period excluding finance costs is budgeted to be approximately $395.8 million. - - - - - - ($,000) - - - South Central Extension Pre-2017 CAPITAL COSTS NPR Utilities Relocation Project Costs Financing Costs $ Total Capital Costs $ CAPITAL REVENUES Future Federal Total Federal $ Phoenix Total Local Total Capital Revenue $ 2017 2018 2019 2021 TOTAL - $ 39,417 $39,417 27,769 90,922 5,996 $ 124,687 $ 9,256 83,084 5,996 $ 98,336 $ 83,084 5,996 $ 89,080 $ 62,313 5,996 $ 68,309 37,025 358,820 23,984 $ 419,829 - $ $ 62,344 62,344 $ 49,168 49,168 $ 44,540 44,540 $ 34,155 34,155 $ 190,206 190,206 - $ 2020 $ - 39,417 39,417 62,344 62,344 49,168 49,168 44,540 44,540 34,155 34,155 229,623 229,623 - $39,417 $ 124,687 $ 98,336 $ 89,080 $ 68,309 $ 419,829 52 50TH Street Station: The 50th Street Light Rail station will enhance mobility options by serving a regional facility for persons with disabilities and other developments in the area. The project is completely funded by City of Phoenix as part of the voter approved Proposition 104. The project is currently in design phase and is expected to begin construction in spring 2017. 50TH Street Station 50th Street Light Rail Station Sources and Uses of Funds: The total capital cost of the 50th Street LRT station project over the FY 2017 to FY 2019 period is budgeted to be approximately $21.3 million. - - - - - - ($,000) - - - 50th Street Station Pre-2017 CAPITAL COSTS NPR Utilities Relocation Project Costs $ Total Capital Costs $ CAPITAL REVENUES Phoenix Total Local Total Capital Revenue 2017 2018 2019 $ $ 621 5,780 $ 6,401 $ 2,263 8,634 $10,897 $ $ 747 747 $ 6,401 6,401 $10,897 10,897 $ 3,275 3,275 $ - $ - $ 21,320 21,320 $ 747 $ 6,401 $10,897 $ 3,275 $ - $ - $ 21,320 $ - TOTAL $ $ - 2021 747 747 53 3,275 $ 3,275 2020 $ $ 2,884 18,436 21,320 Northwest Extension Phase II - The Northwest extension will enhance mobility options for a largely transit-dependent community and provide connectivity with employment centers near the I-17 freeway. It will support nearly 10,000 family housing units and help up to 20,000 employees get to work. It will also bolster community revitalization. In 2004, the Phoenix City Council approved the Northwest Light Rail Extension, which included 4.6 miles of additional light rail service, extending from the current end-of-line at 19th Ave. and Montebello Ave. to Mountain View Rd. and 25th Ave. In 2007, the route was divided into two phases. The 3.2-mile Phase I on 19th Ave. from Montebello Ave. to Dunlap Ave. is currently under construction and scheduled to open in March 2016. Phase II of the project will extend west on Dunlap Ave., north on 25th Ave. and across I17 near Mountain View Rd. with a terminus on the west side of the freeway near Metrocenter Mall. The Phoenix City Council approved the I-17 crossing in 2014. Conceptual engineering on the project is currently underway. Phase II is scheduled to open in 2023. Northwest Extension Phase II 54 Northwest Phase II Sources and Uses of Funds: The total capital cost of the Northwest Phase II Extension project over the FY 2017 to FY 2021 period is budgeted to be approximately $159.2 million, excluding financing costs. - - - - - - ($,000) - - - Northwest Extension Phase 2 CAPITAL COSTS NPR Utilities Relocation Project Costs Financing Costs Pre-2017 $ Total Capital Costs $ CAPITAL REVENUES FTA Section 5309 Total Federal $ - $ $ $ - Phoenix PTF Revenue Total Local Total Capital Revenue - 2017 $ - $ 2018 2019 2020 2021 TOTAL - $ 3,055 $ 3,055 $ 29,032 $ 29,032 $ 5,353 56,902 4,160 $ 66,415 $ 5,353 59,541 4,286 $ 69,180 $ - $ $ $ 39,401 39,401 $ 27,672 27,672 $ - - 10,706 148,530 8,446 $ 167,682 67,073 67,073 - 2,872 183 3,055 27,290 1,742 29,032 18,247 8,767 27,014 32,583 8,925 41,508 80,992 19,617 100,609 - $ 3,055 $ 29,032 $ 66,415 $ 69,180 $ 167,682 55 West Phoenix / Central Glendale - West Phoenix/Central Glendale high capacity transit corridor is currently programmed as a 5-mile corridor connecting the existing 19th Ave LRT extension serving West Phoenix and Downtown Glendale. Valley Metro initiated a transit corridor study in 2013 to identify high capacity transit options in partnership with the cities of Phoenix and Glendale. After completing three levels of technical analysis and extensive public outreach, staff is considering a 7-mile leading alternative connecting 19th Avenue and Camelback LRT station through Camelback Road, north along 43rd Avenue and west along Glendale Ave and Glenn Drive. Additional technical analysis and community outreach will be conducted in FY16 and FY17 with a proposed recommendation taken for city council actions and Valley Metro Rail Board action in late 2016/early 2017. The 2017 TLCP will be updated to reflect the revised alignment following Board action. West Phoenix / Central Glendale West Phoenix/Central Glendale Source and Uses of Funds: The estimated capital cost of the project over the period from FY2017 through 2021 excluding finance costs is $102.2 million. - - - - - ($,000) - - - West Phoenix Central Glendale CAPITAL COSTS NPR Utilities Relocation Project Costs Financing Costs Total Capital Costs CAPITAL REVENUES FTA Section 5309 CMAQ Total Federal Pre-2017 $ $ $ - $ - $ $ - Phoenix Glendale PTF Revenue Total Local Total Capital Revenue 2017 $ - 2018 - $ - $ $ $ - 2019 - $ - $ $ $ 56 - 2020 - $ - $ $ $ - $ 2021 TOTAL - $ 30,408 71,778 - $ 35,889 10,049 45,938 - 6,309 14,722 35,217 56,248 6,309 14,722 35,217 56,248 - $ 102,186 $ 102,186 $ 102,186 $ 30,408 71,778 $ 102,186 $ 35,889 10,049 45,938 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 FY17 VMR will purchase 8 light rail vehicles for future extensions, perform LRV component overhauls, make improvements for station lighting and railing, security camera component upgrades, ticket vending machine upgrades, and other activities. During FY17 and continuing into FY19, progress payments will be made on the 8 light rail vehicles and 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 2021 is budgeted to be approximately $64.3 million. - - - - - - ($,000) - - - - Systemwide Improvements CAPITAL COSTS All Other LRV Capital PM Vehicle Procurement Total Capital Costs CAPITAL REVENUES Federal 5337 SOGR CMAQ Total Federal PTF Revenue Total Local Total Capital Revenue 2017 $ 2018 2019 6,126 4,179 6,000 $ 16,305 2,258 4,179 16,000 $ 22,438 480 3,520 18,000 $ 22,000 $ $ $ $ $ 341 4,950 5,291 $ 341 14,176 14,517 $ 2020 2,912 15,948 18,860 11,014 11,014 7,921 7,921 3,140 3,140 $ 16,305 $ 22,438 $ 22,000 57 $ 683 1,443 2,126 1,251 1,251 2021 $ $ $ 876 876 $ 2,126 $ 281 1,199 1,480 959 959 TOTAL $ 9,829 14,520 40,000 $ 64,349 $ 5,802 35,074 40,876 521 521 23,472 23,472 1,480 $ 64,349 Valley Metro FY17 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 39. Authorization of positions by the VMR Board is executed by adoption of the Annual Budget. 58 Valley Metro Regional Public Transportation Authority FY17 Adopted FTE Count by Pay Grades and Ranges FTE Effort Pay Grade Position Title Adopted Pay Range I Cleaner $22,824 - III Administrative Assistant I Customer Service Representative Document Control Clerk LRV Yard Operator Stockroom Clerk Transit Distribution and Signage Assistant $28,179 IV Customer Service Application Technician Lead Document Control Clerk LRV Inspector Materials Handler V Total FTE RPTA VMR $34,237 0.00 3.00 3.00 - $42,268 0.60 39.00 0.05 0.00 0.00 0.50 1.40 0.00 0.95 1.00 2.00 0.50 2.00 39.00 1.00 1.00 2.00 1.00 $31,310 - $46,965 1.00 0.05 0.00 0.00 0.00 0.95 13.00 1.00 1.00 1.00 13.00 1.00 Accounting Technician Administrative Assistant II Lead Customer Service Representative LRV Lead Inspector/Cleaner $34,441 - $51,661 3.00 4.70 4.00 0.00 1.00 5.30 0.00 1.00 4.00 10.00 4.00 1.00 VI Contracts Specialist Design & Construction Project Assistant Human Resources Technician LRV Maintenance Technician I Track Maintainer $37,884 - $56,827 0.50 0.02 2.00 0.00 0.00 0.50 0.98 0.00 17.00 7.00 1.00 1.00 2.00 17.00 7.00 VII Accountant I Administrative Assistant III Help Desk Specialist Internal Audit Specialist LRV Maintenance Technician II Paralegal Planner I Planning Program Specialist Program Representative Signal/Comm System Maintainer Utility Relocation Specialist Vehicle Parts Coordinator $41,673 - $62,510 2.00 0.50 0.40 0.50 0.00 0.50 0.20 0.50 7.90 0.00 0.08 0.00 0.00 1.50 0.60 0.50 12.00 0.50 0.80 0.50 1.10 9.00 0.92 1.00 2.00 2.00 1.00 1.00 12.00 1.00 1.00 1.00 9.00 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 59 Valley Metro Regional Public Transportation Authority FY17 Adopted FTE Count by Pay Grades and Ranges FTE Effort Pay Grade Position Title Adopted Pay Range IX Accountant II Budget Analyst Contracts Administrator Customer Service Supervisor Data Analyst Human Resources Generalist LRV Systems and Equipment Specialist Management Analyst Planner II Program Coordinator Public Information Specialist Safety Specialist Scheduler Security Coordinator Service Analyst II Web Developer $50,425 - X Bus and 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 VMware Storage Administrator $55,468 XI Employee Relations Administrator GIS Administrator IT Project Manager Light Rail Technical Trainer Planner III Project Manager Public Arts Administrator Quality Assurance Administrator Senior Construction Project Coordinator Senior Management Analyst $61,014 60 Total FTE RPTA VMR $75,637 3.50 1.00 1.75 5.00 1.00 2.00 0.00 1.00 0.90 8.65 0.55 0.50 1.00 0.50 1.45 2.00 0.50 1.00 1.25 0.00 0.00 0.00 1.00 0.00 2.10 6.35 1.45 0.50 0.00 0.50 0.55 0.00 4.00 2.00 3.00 5.00 1.00 2.00 1.00 1.00 3.00 15.00 2.00 1.00 1.00 1.00 2.00 2.00 - $83,201 1.00 0.40 0.00 0.40 0.00 2.00 0.00 0.80 0.05 0.40 0.00 0.60 3.00 0.60 1.00 0.00 1.00 2.20 2.95 0.60 1.00 1.00 3.00 1.00 1.00 2.00 1.00 3.00 3.00 1.00 - $91,521 1.00 0.75 0.40 0.00 0.00 0.25 0.05 0.10 0.10 0.50 0.00 0.25 0.60 1.00 0.00 0.75 0.95 0.90 0.90 1.50 1.00 1.00 1.00 1.00 0.00 1.00 1.00 1.00 1.00 2.00 Valley Metro Regional Public Transportation Authority FY17 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 $67,115 Manager, Administrative Support Services and Project Management Manager, Budget and Operations Financial Controls Manager, Communications Manager, Community Relations Manager, Customer Service Manager, Environmental Program Manager, Facilities Maintenance Manager, General Accounting Manager, Human Resources Support Services Manager, Internal Audit Manager, Marketing Manager, Service Planning Manager, Transportation Demand Management Manager, Utility Security Engineer Senior Application Developer Stakeholder Affairs Manager - $100,673 0.00 0.50 0.50 0.40 0.30 1.00 0.15 0.05 0.65 1.00 0.50 0.50 0.75 1.00 0.00 0.45 0.40 0.00 1.00 0.50 0.50 0.60 0.70 0.00 0.85 0.95 0.35 0.00 0.50 0.50 0.25 0.00 1.00 0.55 0.60 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 1.00 1.00 1.00 XIII Manager, Accessible Transit Services Manager, Bus Services Delivery Manager, Financial Reporting Manager, LRT Systems Manager, Operations Support and Analysis Manager, Safety and Security Quality Assurance Manager Resident Engineer Senior Project Engineer Systems Engineer $73,827 - $110,740 0.85 1.00 0.50 0.05 0.30 0.50 0.00 0.05 0.00 0.05 0.15 0.00 0.50 0.95 0.70 0.50 1.00 0.95 1.00 0.95 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, Capital Development Manager, Construction Manager, Contracts and Procurement Manager, Design Manager, O&M Startup/Activation Manager, Revenue Generation and Financial Planning Senior Database Architect Superintendent LRV Maintenance $83,632 - $125,448 0.00 0.50 0.15 0.10 0.40 0.05 0.00 0.75 0.40 0.00 1.00 0.50 0.85 0.90 0.60 0.95 1.00 0.25 0.60 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 XV Chief of Staff Deputy Director, Service Planning & Accessible Transit Director, Communication and Marketing Director, Human Resources Director, Safety and Security $102,206 0.50 0.85 0.50 1.00 0.50 0.50 0.15 0.50 0.00 0.50 1.00 1.00 1.00 1.00 1.00 61 - $153,310 Valley Metro Regional Public Transportation Authority FY17 Adopted FTE Count by Pay Grades and Ranges FTE Effort Pay Grade Position Title Adopted Pay Range RPTA VMR Total FTE XVI Chief Engineer Chief Financial Officer Chief Operations Officer Chief Technology Officer Director, Planning and Accessible Transit $114,880 - $172,320 0.00 0.50 0.40 0.50 0.20 1.00 0.50 0.60 0.50 0.80 1.00 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 FY17 FTE's 130.90 179.10 310.00 FY16 FTE's 129.14 182.86 312.00 1.76 -3.76 Salary Negotiated Change -2.00 Valley Metro Regional Public Transportation Authority FY17 New Positions Title Division Manager, Internal Audit Chief Executive Office Internal Audit Specialist Chief Executive Office Scope of Work FTE Agency Internal Controls with primary reporting to Board Internal Control testing and compliance 1 1 Program Representative Planning & Accessible Transit Scheduler Operations and Maintenance ‐ RPTA Program Coordinator Operations and Maintenance ‐ RPTA Total Additions Support East Valley, West Valley, and regional paratransit Fixed Route Bus schedule analysis and management Fixed Route Bus contractor performance management 1 1 1 5 Cleaner Total Reductions Light rail vehicle cleaning ‐7 ‐7 Operations and Maintenance ‐ RPTA Net change 62 ‐2 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 Regional Transit Advisory 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. 63 Budget Timelines: The FY 2017 process is outlined below, with Proposed planning beginning in February and with budget adoption scheduled for May 2016. Major phases of this process are outlined below:           Oct 31, 2015 – Preliminary Rail Operating Budget to City Staff Nov 19th – Board approves Agency goals Feb 20th – Prelim FY17 Operating and Capital Budget delivered to Financial Working Group Feb 26th – Budget presented to Financial Working Group for information Mar 16th – Budget presented to RTAG Apr 6th – Draft Budget presented to RMC for information Apr 14th – Comments due from Member Cities Apr 21st – Draft Budget presented to Board of Directors for information May 4th – FY17 Budget to RMC for approval May 19th – FY17 Budget – Anticipated approval by Board 64 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) 65 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 66 101 North First Avenue | Suite 1300 | Phoenix, AZ 85003 | valleymetro.org