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HomeMy Public PortalAbout10 October 26, 2015 Budget & implementationRIVERSIDE COUNTY TRANSPORTATION COMMISSION BUDGET AND IMPLEMENTATION COMMITTEE MEETING AGENDA TIME: 9:30 a.m. DATE: Monday, October 26, 2015 LOCATION: BOARD ROOM County of Riverside Administrative Center 4080 Lemon Street, First Floor, Riverside  COMMITTEE MEMBERS  Bob Magee, Chair / Natasha Johnson, City of Lake Elsinore Jan Harnik, Vice Chair / Susan Marie Weber, City of Palm Desert Brenda Knight / Jeff Fox, City of Beaumont Ella Zanowic / Jim Hyatt, City of Calimesa Dawn Haggerty / Jordan Ehrenkranz, City of Canyon Lake Greg Pettis / Shelley Kaplan, City of Cathedral City Steven Hernandez / To Be Appointed, City of Coachella Scott Matas / Russell Betts, City of Desert Hot Springs Linda Krupa / Paul Raver, City of Hemet Dana Reed / Douglas Hanson, City of Indian Wells Rick Gibbs / Jonathan Ingram, City of Murrieta Rusty Bailey / Andy Melendrez, City of Riverside Michael Naggar / Michael McCracken, City of Temecula John F. Tavaglione, County of Riverside, District II Chuck Washington, County of Riverside, District III  STAFF  Anne Mayer, Executive Director Theresia Trevino, Chief Financial Officer  AREAS OF RESPONSIBILITY  Annual Budget Development and Oversight Competitive Federal and State Grant Programs Countywide Communications and Outreach Programs Countywide Strategic Plan Legislation Public Communications and Outreach Programs Short Range Transit Plans Comments are welcomed by the Committee. If you wish to provide comments to the Committee, please complete and submit a Speaker Card to the Clerk of the Board. COMM-BI-00029 Tara Byerly From: Sent: To: Cc: Subject: Importance: Tara Byerly Wednesday, October21, 201511:06AM Tara Byerly Jennifer Harmon RCTC: Budget and Implementation Committee Agenda -10.26.2015 High Good morning Budget and Implementation Committee Members: Attached below is the link to the Budget and Implementation Committee Agenda for the meeting scheduled @ 9:30 a.m. on Monday, October 26. http://www.rctc.org/uploads/media items/budget-and-implementation-committe-october-26-2015.original.pdf Please let me know if you have any questions. Thank you. Respectfully, <Tara S. <Byerfy Deputy Clerk of the Board Riverside County Transportation Commission 4080 Lemon Street, 3rd Floor Riverside, CA 92501 (951) 787-7141 1 RIVERSIDE COUNTY TRANSPORTATION COMMISSION BUDGET AND IMPLEMENTATION COMMITTEE www.rctc.org AGENDA* *Actions may be taken on any item listed on the agenda 9:30 a.m. Monday, October 26, 2015 BOARD ROOM County Administrative Center 4080 Lemon Street, First Floor Riverside, California In compliance with the Brown Act and Government Code Section 54957.5, agenda materials distributed 72 hours prior to the meeting, which are public records relating to open session agenda items, will be available for inspection by members of the public prior to the meeting at the Commission office, 4080 Lemon Street, Third Floor, Riverside, CA, and on the Commission’s website, www.rctc.org. In compliance with the Americans with Disabilities Act, Government Code Section 54954.2, and the Federal Transit Administration Title VI, please contact the Clerk of the Board at (951) 787-7141 if special assistance is needed to participate in a Commission meeting, including accessibility and translation services. Assistance is provided free of charge. Notification of at least 48 hours prior to the meeting time will assist staff in assuring reasonable arrangements can be made to provide assistance at the meeting. 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ATTENDANCE / ROLL CALL 4. PUBLIC COMMENTS – Each individual speaker is limited to speak three (3) continuous minutes or less. The Committee may, either at the direction of the Chair or by majority vote of the Committee, waive this three minute time limitation. Depending on the number of items on the Agenda and the number of speakers, the Chair may, at his/her discretion, reduce the time of each speaker to two (2) continuous minutes. Also, the Committee may terminate public comments if such comments become repetitious. In addition, the maximum time for public comment for any individual item or topic is thirty (30) minutes. Speakers may not yield their time to others without the consent of the Chair. Any written documents to be distributed or presented to the Committee shall be submitted to the Clerk of the Board. This policy applies to Public Comments and comments on Agenda Items. Under the Brown Act, the Board should not take action on or discuss matters raised during public comment portion of the agenda which are not listed on the agenda. Board members may refer such matters to staff for factual information or to be placed on the subsequent agenda for consideration. Budget and Implementation Committee October 26, 2015 Page 2 5. APPROVAL OF MINUTES – SEPTEMBER 28, 2015 6. ADDITIONS/REVISIONS (The Committee may add an item to the Agenda after making a finding that there is a need to take immediate action on the item and that the item came to the attention of the Committee subsequent to the posting of the agenda. An action adding an item to the agenda requires 2/3 vote of the Committee. If there are less than 2/3 of the Committee members present, adding an item to the agenda requires a unanimous vote. Added items will be placed for discussion at the end of the agenda.) 7. CONSENT CALENDAR - All matters on the Consent Calendar will be approved in a single motion unless a Commissioner(s) requests separate action on specific item(s). Items pulled from the Consent Calendar will be placed for discussion at the end of the agenda. 7A. SINGLE SIGNATURE AUTHORITY REPORT Page 1 Overview This item is for the Committee to: 1) Receive and file the Single Signature Authority report for the first quarter ended September 30, 2015; and 2) Forward to the Commission for final action. 8. FUNDING PLAN FOR INTERSTATE 15 EXPRESS LANES PROJECT Page 3 Overview This item is for the Committee to: 1) Provide input and direct staff regarding the preliminary funding plan for the Interstate 15 Express Lanes project; 2) Approve $60 million in federal Congestion Mitigation and Air Quality (CMAQ) funds for costs related to the I-15 Project and direct staff to program the funding in the 2015 Federal Transportation Improvement Program (FTIP); and 3) Forward to the Commission for final action. Budget and Implementation Committee October 26, 2015 Page 3 9. CALIFORNIA TRANSPORTATION COMMISSION’S ACTIVE TRANSPORTATION PROGRAM CYCLE 2 FOR FISCAL YEARS 2016/17 – 2018/19 Page 6 Overview This item is for the Committee to: 1) Approve the Riverside County Active Transportation Program (ATP) projects for inclusion in the Metropolitan Planning Organization (MPO) ATP Regional Program Cycle 2 consisting of the highest scoring projects identified in Table 2 in the total amount of $9,204,000; 2) Approve programming ATP and/or a combination of SB 821 and federal funds of up to $2,293,000 for one or more projects scoring 80/90 points in order to maximize Riverside County MPO ATP funds; 3) Submit the recommended projects to the Southern California Association of Governments (SCAG) for inclusion in the MPO ATP Regional Program and subsequent submittal to the California Transportation Commission (CTC) for final approval in January 2016; 4) Submit the MPO ATP regional projects to SCAG for inclusion in the Federal Transportation Improvement Program (FTIP) programming; 5) Direct staff to coordinate with the MPO ATP Regional Program project sponsors regarding timely funding allocations, obligations, and project delivery; and 6) Forward to the Commission for final action. 10. METROLINK BUDGET ACTIONS TO SUPPORT LOCOMOTIVE PROCUREMENTS Page 13 Overview This item is for the Committee to: 1) Approve Commission participation in the Metrolink lease of BNSF Railway (BNSF) locomotives in the amount of $1,585,231; 2) Approve Commission participation in the optional procurement of 17 new Metrolink Tier IV locomotives in the amount of $2.7 million; 3) Approve Memorandum of Understanding (MOU) No. 16-25-014-02, Amendment No. 1 to MOU No. 16-25-014-01, with the Southern California Regional Rail Authority (SCRRA) for additional funding in the amount of $1,585,231 related to the locomotives lease for a total operating budget subsidy amount of $15,577,255 and for authorization to use $2.7 million of Fiscal Year 2015/16 or carryover rehabilitation/renovation funds for the procurement of the Tier IV locomotives; 4) Authorize the Chair or Executive Director, pursuant to legal counsel review, to execute the agreement on behalf of the Commission; and 5) Forward to the Commission for final action. Budget and Implementation Committee October 26, 2015 Page 4 11. COMMISSIONERS / STAFF REPORT Overview This item provides the opportunity for the Commissioners and staff to report on attended and upcoming meeting/conferences and issues related to Commission activities. 12. ADJOURNMENT AND THE NEXT MEETING The next Budget and Implementation Committee meeting is scheduled to be held at 9:30 a.m., Monday, November 23, 2015, Board Chambers, First Floor, County Administrative Center, 4080 Lemon Street, Riverside. RIVERSIDE COUNTY TRANSPORTATION COMMISSION BUDGET AND IMPLEMENTATION COMMITTEE SIGN-IN SHEET OCTOBER 26, 2015 NAME, AGENCY E MAIL ADDRESS (~ ~ ~ 04._ ~Z~ ~,;L ~-4 Y c::ft'thn 111 ot_ 'I\ J / \ /' (' r J ~. ,o 1 <'JIM o n mMJ1A.. ~ "--X ~ ;;z;;:;; '-"' 'J ' j ,.._,, -.. £Lt..,-A A -;,-.Pi-C// c' c~ _.;_, ,._._ . ;:--.;; -4- ~)/){)/AC: efl_ U/§ V-/ vJ/'6 v-0- -$.fl..i Lld'o r-..11 V VL\JJYI~~/ Rvs~ t~I; )~ T?-t~~r<# ' <:c;J .h14' ~ ~ ~ • I f)):Z, F;41_/L /.kr;-~ --s fti e-K_ G/bbS v.t?-.t-"'~FA v 7 r-1 ::w_11e_lJ KtJAJ!tJM C0v~r11f C--lu-- IM.-1'"'"' r""_ r 1--ik_/" 'V-, u ~ Ua V\<i.l 611.( t-f OtY1,!0~ -r;,/'l)AJl'I w~ \\c. ~ RIVERSIDE COUNTY TRANSPORTATION COMMISSION BUDGET AND IMPLEMENTATION COMMITTEE ROLL CALL OCTOBER 26, 2015 County of Riverside, District II County of Riverside, District Ill City of Beaumont City of Calimesa City of Canyon Lake City of Cathedral City City of Coachella City of Desert Hot Springs City of Hemet City of Indian Wells City of Lake Elsinore City of Murrieta City of Palm Desert City of Riverside City of Temecula Absent ~ D D J!f D CJ <AA.A\..; ~cl. '\ ·. '1. "Z. c:-.rn • ' D D D D D D D D AGENDA ITEM 5 MINUTES RIVERSIDE COUNTY TRANSPORTATION COMMISSION BUDGET AND IMPLEMENTATION COMMITTEE Monday, September 28, 2015 MINUTES 1. CALL TO ORDER The meeting of the Budget and Implementation Committee was called to order by Chair Bob Magee at 9:30 a.m., in the Board Room at the County of Riverside Administrative Center, 4080 Lemon Street, First Floor, Riverside, California, 92501. 2. PLEDGE OF ALLEGIANCE At this time, Chair Magee led the Budget and Implementation Committee in a flag salute. 3. ROLL CALL Members/Alternates Present Members Absent Rusty Bailey Rick Gibbs Douglas Hanson Steven Hernandez Dawn Haggerty Greg Pettis Jan Harnik John Tavaglione Brenda Knight Linda Krupa Bob Magee Scott Matas Michael Naggar Chuck Washington Ella Zanowic 4. PUBLIC COMMENTS There were no requests to speak from the public. RCTC Budget and Implementation Committee Minutes September 28, 2015 Page 2 5. APPROVAL OF MINUTES – AUGUST 24, 2015 M/S/C (Naggar/Matas) to approve the minutes of August 24, 2015 meeting as submitted. 6. ADDITIONS / REVISIONS There were no additions or revisions to the agenda. 7. 2016 STATE TRANSPORTATION IMPROVEMENT PROGRAM – INTERSTATE 15/FRENCH VALLEY PARKWAY INTERCHANGE AND INTERSTATE 15/RAILROAD CANYON ROAD INTERCHANGE PROGRAMMING RECOMMENDATIONS Shirley Medina, Planning and Programming Director, presented the 2016 State Transportation Improvement Program (STIP) programming recommendations for Interstate 15/French Valley Parkway interchange and I-15/Railroad Canyon Road interchange projects. Commissioner Michael Naggar expressed appreciation to the parties involved for their support and for the progress that has been made. In response to Commissioner Linda Krupa’s request for clarification regarding the focus of the funding and funding priorities, Anne Mayer discussed the original funding proposal, the option developed by Caltrans and the city of Temecula for the I-15/French Valley Parkway interchange project, and the remaining funding that staff recommends programming to I-15/Railroad Canyon Road interchange project as its environmental document is very close to completion. She explained this amount would not allow the MCP project to move to the next phase. M/S/C (Naggar/Krupa) to: 1) Approve programming the Interstate 15/French Valley Parkway interchange (Phase 2) in the 2016 State Transportation Improvement Program (STIP) as agreed upon by the city of Temecula (Temecula), Caltrans, and the Federal Highway Administration; 2) Approve reprogramming STIP funds from the I-215 South connector gap closure project to the I-15/Railroad Canyon Road interchange project including any additional STIP funds that may become available; 3) Authorize the Executive Director to determine final programming amounts for the I-15/French Valley Parkway interchange (Phase 2) and I-15/Railroad Canyon Road interchange projects in an amount not to exceed $50,645,000; and 4) Forward to the Commission for final action. RCTC Budget and Implementation Committee Minutes September 28, 2015 Page 3 8. TRADE CORRIDOR IMPROVEMENT FUND UPDATE AND AVENUE 66 Tanya Love, Goods Movement Manager, presented an update on the Trade Corridor Improvement Fund (TCIF) and the Avenue 66 at-grade railroad crossing project. Commissioner Harnik expressed appreciation these funds have been allocated for the Avenue 66 at-grade railroad crossing project as it is very important to the city of Mecca and the entire Coachella Valley. M/S/C (Harnik/Matas) to: 1) Allocate up to $15 million in Congestion Management Air Quality (CMAQ) funds to the County of Riverside (County) for the Avenue 66 at- grade railroad crossing; 2) Direct staff to work with the Coachella Valley Association of Governments (CVAG), the County, Caltrans, and the California Transportation Commission (CTC) to secure the balance of funding required; 3) Submit Trade Corridor Improvement Fund (TCIF) project application and supporting documentation to the CTC requesting allocation of $5,708,444 in TCIF funding for Avenue 66; and 4) Forward to the Commission for final action. 9. RIGHT OF WAY POLICIES AND PROCEDURES MANUAL Mark Lancaster, Right of Way Manager, presented the revisions to the RCTC Right of Way Policies and Procedures Manual, highlighting the following areas: • Previous right of way manual adoptions – The Commission adopted the right of way manual on July 11, 2007; The Commission adopted the amendment to Section 7-3 on March 13, 2013; • Revised right of way policies and procedures manual chapters; • 2015 revisions – Reviewed and revised all 12 chapters to: 1) Conform to Industry Best Practices; 2) Conform with current federal and state laws, regulations, and policies; 3) Comply with FTA triennial audit corrective action, and include a new section for project closeout; and • Next steps – Legal counsel to review final revisions, the Commission adoption of final revisions on October 14, and submit the final RCTC Right of Way Policies and Procedures Manual to FTA by October 21. Commissioner Douglas Hanson commended staff for its detailed work on the right of way manual. He then asked how the competitive pricing is included in this process. RCTC Budget and Implementation Committee Minutes September 28, 2015 Page 4 Mark Lancaster discussed the establishment of an on-call list of appraisers as well as the task order process. In response to Commissioner Hanson’s clarification there did not seem to be a set criteria for relocation allowances, Mark Lancaster explained with the Uniform Relocation Act, there are federal limits to which the Commission must conform. Anne Mayer added with respect to the appraisals, the on-call list is handled as a formal competitive procurement through the Commission’s Procurement Department. Right of way staff draws the appraisers from that list for each specific parcel. Commissioner Hanson expressed he believed pricing competitiveness was missing. Anne Mayer explained when staff processes task orders, the Commission receives competitive bids as the on-call list consultants are asked to give a proposal on each task. M/S/C (Harnik/Hanson) to: 1) Approve the revised RCTC Right of Way Policies and Procedures Manual for the acquisition and sale of real property, relocation of displaced individuals and businesses, utility relocations, appraisal of real property, project certification, project closeout, and property management, pursuant to legal counsel review as to conformance to federal and state law; 2) Adopt Resolution No. 15-020, “Resolution of the Riverside County Transportation Commission Amending the RCTC Right of Way Policies and Procedures Manual”; 3) Authorize the Executive Director to approve the final RCTC Right of Way Policies and Procedures Manual; and 4) Forward to the Commission for final action. 10. SB 821 BICYCLE AND PEDESTRIAN FACILITIES PROGRAM REALLOCATION FOR THE CITY OF JURUPA VALLEY Jillian Guizado, Management Analyst, presented the SB 821 Bicycle and Pedestrian Facilities Program reallocation for the city of Jurupa Valley and provided an update for the remaining funds from the FY 2015/16 call for projects. M/S/C (Krupa/Naggar) to: 1) Approve the reallocation of Fiscal Year 2013/14 returned project funds in the amount of $130,000 to the city of Jurupa Valley’s (Jurupa Valley) Golden West Avenue Sidewalk Infill project, previously funded with RCTC Budget and Implementation Committee Minutes September 28, 2015 Page 5 $70,000 in the FY 2013/14 SB 821 Bicycle and Pedestrian Facilities program recommended funding list; 2) Receive and file an update on the status of the $556,508 remaining from the FY 2015/16 call for projects; and 3) Forward to the Commission for final action. 11. FEDERAL AND STATE LEGISLATION Aaron Hake, Government Relations Manager, provided an update on state and federal legislative activities. M/S/C (Zanowic/Harnik) to: 1) Receive and file an update on federal and state legislation; and 2) Forward to the Commission for final action. 12. COMMISSIONERS / EXECUTIVE DIRECTOR REPORT There were no Commissioners or Executive Director comments. 13. ADJOURNMENT AND NEXT MEETING There being no further business for consideration by the Budget and Implementation Committee, the meeting was adjourned at 10:03 a.m. The next meeting of the Budget and Implementation Committee is scheduled for October 26, 2015, at 9:30 a.m. Respectfully submitted, Jennifer Harmon Clerk of the Board AGENDA ITEM 7A BLANK RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: October 26, 2015 TO: Budget and Implementation Committee FROM: Marla Dye, Procurement Analyst Matt Wallace, Procurement Manager THROUGH: Theresia Trevino, Chief Financial Officer SUBJECT: Single Signature Authority Report STAFF RECOMMENDATION: This item is for the Committee to: 1) Receive and file the Single Signature Authority report for the first quarter ended September 30, 2015; and 2) Forward to the Commission for final action. BACKGROUND INFORMATION: Certain contracts are executed under single signature authority as permitted in the Commission’s Procurement Policy Manual adopted in December 2012. The Executive Director is authorized to sign services contracts that are less than $100,000 individually and in an aggregate amount not to exceed $1 million in any given fiscal year. Additionally, in accordance with Public Utilities Code Section 130323(c), the Executive Director is authorized to sign contracts for supplies, equipment, materials, and construction of all facilities and works under $50,000 individually. The attached report details all contracts that have been executed for the first quarter ended September 30, 2015, under the single signature authority granted to the Executive Director. The unused capacity of single signature authority for services at September 30, 2015, is $965,000. Attachment: Single Signature Authority Report as of September 30, 2015 Agenda item 7A 1 BLANK CONSULTANT DESCRIPTION OF SERVICES ORIGINAL CONTRACT AMOUNT PAID AMOUNT REMAINING CONTRACT AMOUNT AMOUNT AVAILABLE July 1, 2015 $1,000,000.00 The Alberts Firm Client Trust Settlement Agreement 35,000.00 0.00 35,000.00 AMOUNT USED 35,000.00 35,000.00 $965,000.00 None N/A -$ -$ -$ Marla Dye Theresia Trevino Prepared by Reviewed by AMOUNT USED SINGLE SIGNATURE AUTHORITY AS OF September 30, 2015 Note: Shaded area represents new contracts listed in the first quarter. AMOUNT REMAINING through September 30, 2015 Agreements that fall under Public Utilities Code 130323 (C) 2 BLANK AGENDA ITEM 8 BLANK RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: October 26, 2015 TO: Budget and Implementation Committee FROM: Theresia Trevino, Chief Financial Officer Michael Blomquist, Toll Program Director Shirley Medina, Planning and Programming Director THROUGH: Anne Mayer, Executive Director SUBJECT: Funding Plan for Interstate 15 Express Lanes Project STAFF RECOMMENDATION: This item is for the Committee to: 1) Provide input and direct staff regarding the preliminary funding plan for the Interstate 15 Express Lanes project; 2) Approve $60 million in federal Congestion Mitigation and Air Quality (CMAQ) funds for costs related to the I-15 Project and direct staff to program the funding in the 2015 Federal Transportation Improvement Program (FTIP); and 3) Forward to the Commission for final action. BACKGROUND INFORMATION: The I-15 Express Lanes project will construct one to two tolled express lanes in each direction between the I-15/Cajalco Road interchange and the 15/60 interchange. All proposed improvements are anticipated to be constructed within existing Caltrans right of way with the majority of the improvements occurring within the existing I-I5 median. There are no significant environmental impacts anticipated. Right of way impacts will be limited, and some soundwalls will be built. With tolled express lanes, users benefit from reduced travel times achieved through congestion pricing. Tolls to be charged will vary by time of day based on congestion levels. The I-15 Express Lanes will provide many travel choices including carpooling, vanpooling, express bus, and single occupant vehicle travel. A completely electronic toll collection system will be used, and all vehicles in the tolled express lanes will be required to have a FasTrak transponder. Environmental work is well underway, and environmental approval via a findings of no significant impact is expected by March 2016. A Project and Construction Management (PCM) team has been in place since April 2015. The investment grade traffic and revenue study is Agenda Item 8 3 underway and should be complete by March 2016. The project finance team including a financial advisor and underwriters is in place and financial close is expected by mid 2017. Once financial close occurs, construction will begin. The projected project opening is by mid 2020. Preliminary Funding Plan Based on prior cost estimates, traffic and revenue studies, and financial modeling, staff developed a preliminary funding plan that anticipates use of toll revenue bonds, a federal loan through the Transportation Infrastructure Finance and Innovation Act (TIFIA) program, Measure A sales tax bonds, Measure A sales tax receipts, and federal CMAQ grant funds. The toll revenue bonds and TIFIA loan would be paid back by future tolls generated from express lane users. This preliminary funding plan above will change somewhat as the Commission progresses through the project financing work. Currently project capital and long-term operating costs are being re-estimated to reflect current pricing and other assumptions. An investment grade traffic and revenue study is expected in early 2016. With updated cost and revenue estimates, an updated financial model will be developed in 2016, which will provide the basis for a final funding plan. The final funding plan will serve the Commission, as it applies for a federal TIFIA loan, markets and sells toll revenue and sales tax bonds, and generally works to obtain financial close. Federal CMAQ Funds CMAQ funds are available for transportation projects and programs that help meet the requirements of the Clean Air Act. The Commission is responsible for programming these funds and has previously allocated CMAQ funds directly to support Measure A projects, or through a call for projects. Given the high cost of the I-15 Project and the desire to minimize debt financing, staff recommends allocating $60 million of CMAQ funds for this project. Sources (Nominal - US $000's)Uses (Nominal - US $000's) Toll Revenue Bonds Construction Fund Deposit1 368,585,008$ Tax-Exempt CIBs Par Amount 69,339,803$ Capitalized Interest 13,867,961$ Tax-Exempt CABs Par Amount 69,339,803$ Debt Service Reserve Fund (Toll Revenue Bonds)13,867,961$ Premium 4,896,841$ Reimbursement of Pre-Development Costs 2 63,538,930$ TIFIA Loan 151,753,754$ O&M Fund Deposit 2,500,000$ Sales Tax Bonds Total Uses 462,359,860$ Tax-Exempt Bonds Par Amount 83,894,140$ Premium 11,840,252$ 1 Includes costs of issuance Investment Earnings - Construction 2,350,671$ 2 Includes retirement of $__________ of outstanding commercial paper notes. Investment Earnings - CapI and DSRF 703,253$ CMAQ Funds 60,000,000$ RCTC Contribution 8,241,343$ Total Sources 462,359,860$ Agenda Item 8 4 In Riverside County, CMAQ funds are primarily apportioned to two air basins in Riverside County: South Coast Air Basin (SCAB) and Salton Sea Air Basin (SSAB). The Commission allocates funds for the SCAB or Western Riverside County, and the Coachella Valley Association of Governments (CVAG) allocates SSAB CMAQ funds in Eastern Riverside County. The $60 million is comprised of three years of SCAB CMAQ apportionment levels, annual apportionment level is approximately $20 million and would be programmed in the FTIP in FYs 2017/18 through 2019/20. As a result, CMAQ funds would be fully maximized during these years. CMAQ funding is not available for capacity increasing projects for single occupancy vehicles, but it is available for projects such as the I-15 Project that fall under the air quality category of Transportation Control Measures and is categorized in the Southern California Association of Governments’ Regional Transportation Plan/Sustainable Communities Strategy as a Transportation Demand Management strategy. Financial Information In Fiscal Year Budget: N/A Year: FY 2016/17+ Amount: $462,359,860 Source of Funds: 2009 Measure A sales tax receipts and sales tax revenue bonds; toll revenue bonds; TIFIA loan; federal CMAQ funds Budget Adjustment: N/A GL/Project Accounting No.: 003027 000 59102 262 31 59102 (sales tax/toll revenue bonds) 003027 000 59102 262 31 59102 (TIFIA loan) 003027 414 41403 262 31 41401 (CMAQ funds) Fiscal Procedures Approved: Date: 10/19/2015 Agenda Item 8 5 BLANK AGENDA ITEM 9 BLANK RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: October 26, 2015 TO: Budget and Implementation Committee FROM: Lorelle Moe-Luna, Senior Management Analyst Shirley Medina, Planning and Programming Director THROUGH: John Standiford, Deputy Executive Director SUBJECT: California Transportation Commission’s Active Transportation Program Cycle 2 for Fiscal Years 2016/17 – 2018/19 STAFF RECOMMENDATION: This item is for the Committee to: 1) Approve the Riverside County Active Transportation Program (ATP) projects for inclusion in the Metropolitan Planning Organization (MPO) ATP Regional Program Cycle 2 consisting of the highest scoring projects identified in Table 2 in the total amount of $9,204,000; 2) Approve programming ATP and/or a combination of SB 821 and federal funds of up to $2,293,000 for one or more projects scoring 80/90 points in order to maximize Riverside County MPO ATP funds; 3) Submit the recommended projects to the Southern California Association of Governments (SCAG) for inclusion in the MPO ATP Regional Program and subsequent submittal to the California Transportation Commission (CTC) for final approval in January 2016; 4) Submit the MPO ATP regional projects to SCAG for inclusion in the Federal Transportation Improvement Program (FTIP) programming; 5) Direct staff to coordinate with the MPO ATP Regional Program project sponsors regarding timely funding allocations, obligations, and project delivery; and 6) Forward to the Commission for final action. BACKGROUND INFORMATION: SB 99 created the ATP focusing state and federal funds toward projects that improve public health and reduce greenhouse gases. The CTC is responsible for administering the program including the development of guidelines, which involves public input. Project categories for these funds mainly include pedestrian and bike facilities or programs that enhance or encourage walking and bicycling. The second cycle began with the release of a call for projects on March 26, 2015. The call for projects included three categories of funding: Agenda Item 9 6 Funding Category Amount Statewide Competitive (50 percent set aside) $ 179,500,000 Small Urban and Rural Competitive (10 percent set aside) 35,900,000 Large MPO Competitive (40 percent set aside) 143,600,000 Total Available ATP Funds – Cycle 2 $ 359,000,000 Applications were due to the CTC and Caltrans by June 1. The CTC received a total of 617 project applications valued at over $1 billion. Scoring of applications was managed by the CTC and involved the participation of various agencies including, but not limited to, regional transportation planning agencies, MPOs, Caltrans, councils of governments, county public health departments, and advocacy and interest groups such as Safe Routes to Schools, California Bicycle Coalition, and Rails to Trails. In total, Riverside County agencies submitted 31 projects requesting approximately $45 million of ATP funding in this cycle of funding. The ATP process allows applicants two rounds of opportunity to be awarded – statewide and MPO level. As part of the sequential project selection, projects are first evaluated statewide and those that are not ranked high enough for statewide funding are automatically provided a second opportunity for funding through the large MPO share. Applications were scored based on the following criteria: TOTAL POINTS ATP CYCLE 2 SCORING CRITERIA 30 pts Potential for increased walking and bicycling 25 pts Potential for reducing the number and/or rate of bicycle/pedestrian fatalities and injuries 15 pts Public participation and planning 5 pts Cost Effectiveness 10 pts Improved Public Health 10 pts Benefits to Disadvantaged Communities 5 pts Leveraging of Funds 100 pts Total Points were also deducted if the applicant did not contact the California Conservation Corps or a Certified Community Conservation Corps prior to submitting the application to Caltrans, and/or if the applicant’s performance on past grants and deliverability of projects were not satisfactory. CTC/Caltrans Statewide Competitive Funding Recommendations On October 22, 2014, the CTC approved its project recommendations for the statewide competitive component, which included the following two projects from Riverside County: Agenda Item 9 7 TABLE 1 CTC/CALTRANS ATP PROJECT FUNDING FOR RIVERSIDE COUNTY – STATEWIDE COMPETITION Agency Project ATP Funds *DAC CTC Score Riverside County Public Health Department Safe Routes to School, East Riverside $500,000  99.0 Riverside County Transportation Department (RCTD) 3rd Place Sidewalk and Roadway Safety Improvements (in the Blythe area) 721,000  92.0 Riverside County Statewide Total $1,221,000 *DAC – Disadvantaged Community per CTC guidelines Large MPO Competitive Program The SCAG MPO ATP share is approximately $74 million for implementation projects and up to approximately $2.3 million for planning activities. The SCAG MPO implementation ATP funds are distributed by county based on population as follows: County Implementation Funding Amount Imperial $707,659 Los Angeles 39,975,068 Orange 12,429,163 Riverside 9,203,863 San Bernardino 8,347,786 Ventura 3,343,581 Total $74,007,120 MPO ATP guidelines allow each county transportation commission to add up to 10 points to the CTC score for projects based on local criteria. At its May 2014 meeting, the Commission approved adding 10 points to projects consistent with adopted local and regional plans. All Riverside County projects, at a minimum, are consistent with the SCAG adopted 2012 Regional Transportation Plan/Sustainable Communities Strategy. Adding 10 points to Riverside County project scores for the projects not recommended for the statewide competitive program results in the next highest scores for consideration of MPO ATP funds: TABLE 2 RIVERSIDE COUNTY MPO ATP 10 POINT SCORING Agency Project CTC Score CTC Score + 10 pts ATP Requested Funds Cumulative Total Wildomar Grand Avenue Multi-Use Trail Improvement Project 83.0 93.0 $1,223,000 $1,223,000 Agenda Item 9 8 Moreno Valley Segment of the Juan Bautista De Anza Multi-Use Trail 83.0 93.0 1,431,000 2,654,000 Jurupa Valley Jurupa Valley High School Safe Routes to School 82.0 92.0 1,252,000 3,906,000 Riverside Citywide Bicycle and Pedestrian Improvements 82.0 92.0 1,042,000 4,948,000 Banning Bicycle and Safe Routes to School Improvements 82.0 92.0 1,082,000 6,030,000 San Jacinto San Jacinto Valley Connect 81.0 91.0 646,000 6,676,000 RCTD Camino Aventura Sidewalk Safety Improvements 81.0 91.0 902,000 7,578,000 RCTD Mecca Sidewalk and Roadway Safety Improvements 80.0 90.0 851,000 8,429,000 RCTD Thousand Palms Sidewalk Safety Improvements 80.0 90.0 868,000 9,297,000 Coachella ATP Cycle 2 Bike and Pedestrian Improvements 80.0 90.0 2,200,000 11,497,000 Total $11,497,000 $11,497,000 Total Riverside County MPO/ATP Share $ 9,204,000 Difference $ 2,293,000 SCAG will recommend approval of the project below in its 3 percent planning pot WRCOG Limonite Ave. Corridor Active Transportation Study 88.0 98.0 $250,000 $250,000 Staff Recommendations for Large MPO, Riverside County Projects Based on the above table, staff recommends projects with scores of 81/91 and above receive ATP funds. However, there are three projects that scored 80/90 points resulting in a three-way tie: city of Coachella’s bike and pedestrian improvement project, county of Riverside’s Mecca sidewalk and roadway safety improvements, and county of Riverside’s Thousand Palms sidewalk safety improvements. Unfortunately, there is insufficient funding remaining for all three projects, which would result in overprogramming in the amount of $2,293,000. In order to approve all of the projects scoring 80 and above, staff proposes the following: • Coachella, ATP Cycle 2 Fund this project with ATP or a combination of available SB 821 and/or federal funds. • Riverside County, Mecca Sidewalk and Roadway Safety Improvements Fund this project with ATP and/or a combination of available SB 821 and/or federal funds. This project is a smaller project, less than $1 million, and located in a rural and unincorporated area of the county. Agenda Item 9 9 " Riverside County, Thousand Palms Sidewalk and Safety Improvements Fund this project with ATP and/or a combination of available SB 821 and/or federal funds. This project is a smaller project, less than $1 million, and located in a rural and unincorporated area of the county. These projects will be reviewed for eligibility requirements under SB 821 and federal Surface Transportation Program and Congestion Mitigation and Air Quality program funds. Funding availability from these programs is limited, however, programming a combination of fund sources would likely result in funding the requested amount of funds for these three projects scoring 80/90 points. Upon approval of this item, CTC is requiring all projects recommended to be funded with MPO ATP funds must be reviewed by Caltrans for eligibility purposes. Caltrans will provide an analysis and recommendation for MPO ATP projects prior to the CTC s approval of ATP MPO projects. Next Steps Upon approval of the above recommendations for MPO ATP funding, staff will submit the projects to SCAG for Caltrans eligibility review and inclusion in the MPO ATP Regional Program Cycle 2, which will be approved at the SCAG Regional Council meeting on January 7, 2016. Subsequently, SCAG will submit the MPO Regional ATP projects to the CTC for final approval at the January 20 CTC meeting. Staff will work closely with project sponsors in preparing allocation funding requests and requests for obligating federal funds. Projects will also be required to be included in the FTIP. As a condition of the project allocation, the CTC will require project sponsors to submit semi- annual reports on the activities and progress made toward implementation of the project, and a final delivery report is required upon project completion. The purpose of the reports is to ensure the project is implemented in a timely manner according to the scope and budget identified in the project application. Staff will continue to participate in CTC/Caltrans working groups to further develop and improve the ATP guidelines and process, and participate in future evaluations of ATP project applications. Financial Impact ATP funds are administered through the CTC, Caltrans, and Federal Highway Administration. The Commission is not a recipient of these MPO ATP funds; therefore, there is no fiscal impact to the Commission s budget. However, the Commission administers the SB 821 program for Riverside County and staff anticipates these funds would be budgeted in FY 2016/17 and beyond. Agenda Item 9 10 Financial Information In Fiscal Year Budget: N/A Year: FY 2016/17+ Amount: Not to exceed $2,293,000 Source of Funds: Transportation Development Act SB 821 Budget Adjustment: N/A GL/Project Accounting No.: 002211 86106 601 62 86106 Fiscal Procedures Approved: Date: 10/19/2015 Attachment: CTC Score Rankings for All Riverside County Applications Agenda Item 9 11 Western Riverside COG Limonite Corridor Active Transportation Study $ 250 $ 250 83.00 Wildomar Grand Avenue Multi-Use Trail Improvement Project $ 1,541 $ 1,223 $ 1,223 83.00 Moreno Valley Segment of the Juan Bautista De Anza Multi-use Trail $ 1,431 $ 1,431 $ 2,654 83.00 Jurupa Valley Jurupa Valley High School SRTS $ 1,467 $ 1,252 $ 3,906 82.00 Riverside Citywide Bicycle and Pedestrian Improvements $ 1,249 $ 1,042 $ 4,948 82.00 Banning Bicycle and SRTS Improvements $ 1,082 $ 1,082 $ 6,030 82.00 San Jacinto San Jacinto Valley Connect $ 656 $ 646 $ 6,676 81.00 Riverside County Transp. Department Camino Avenue Sidewalk Safety Improvements $ 1,002 $ 902 $ 7,578 81.00 *City of Coachella ATP Cycle 2 $ 2,755 $ 1,626 $ 9,204 80.00 *Coachella requested $2.2M of ATP. $1.626M is available for project. Riverside County Transp Department Mecca Sidewalk and Roadway Safety Improvements $ 945 $ 851 $ 10,055 80.00 Riverside County Transp Department Thousand Palms Sidewalk Safety Improvements $ 1,085 $ 868 $ 10,923 80.00 Indio SRTS Project $ 1,897 $ 1,897 79.00 Eastvale SRTS Citywide Safety Improvements, Education and Encouragement $ 577 $ 461 78.00 Perris Perris Valley Storm Drain Channel Trail-Phase 2 $ 1,743 $ 1,572 75.00 Riverside County Transp Department Clark Street Sidewalk and intersection Safety Improvements $ 2,376 $ 1,324 74.00 Riverside Gage Canal Bike Path and Multi-use Trail $ 2,213 $ 2,213 72.00 Perris Perris Metrolink Station Bike Route and Pedestrian Connectivity $ 1,311 $ 950 69.00 Temecula Santa Gertrudis Creek Ped/Bicycle Trail Extension and Interconnect $ 4,362 $ 3,581 68.00 Riverside County DPH Active Transportation Program, North Shore $ 628 $ 500 62.00 Wildomar Union Street Multi-Use Path $ 2,071 $ 2,050 61.00 Riverside County Transp Department Dillon Road Bike Lane Improvements $ 2,560 $ 2,560 60.00 Moreno Valley Gap Closure Sidewalk on Alessando Blvd at Old 215 Frontage Rd. $ 934 $ 934 60.00 Moreno Valley Cactus Avenue/Philo Street School Crossing Traffic Signal $ 646 $ 646 59.00 Coachella Valley Assoc. Gov.Coachella Valley-CV Link Spurs $ 4,836 $ 4,652 53.00 Hemet Hemet Valley Bikeway Connect $ 977 $ 977 50.00 Riverside Railroad Crossing Sidewalk improvements $ 2,071 $ 2,071 49.00 Riverside Ramona Sidewalk Improvements $ 5,521 $ 5,521 48.50 Beaumont Bikeway and Pedestrian Master Plan $ 23 $ 23 31.00 Cathedral City Festival Park Plan and Corresponding Pedestrian Plan $ 297 $ 250 28.00 Below Projects Not Recommended for Large MPO ATP Cycle 2 (score <80) Large MPO ATP Cycle 2 Project Recommendations Recommend Funding with SB 821 Funds 12 BLANK AGENDA ITEM 10 BLANK RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: October 26, 2015 TO: Budget and Implementation Committee FROM: Sheldon Peterson, Rail Manager THROUGH: Robert Yates, Multimodal Services Director SUBJECT: Metrolink Budget Actions to Support Locomotive Procurements STAFF RECOMMENDATION: This item is for the Committee to: 1) Approve Commission participation in the Metrolink lease of BNSF Railway (BNSF) locomotives in the amount of $1,585,231; 2) Approve Commission participation in the optional procurement of 17 new Metrolink Tier IV locomotives in the amount of $2.7 million; 3) Approve Memorandum of Understanding (MOU) No. 16-25-014-02, Amendment No. 1 to MOU No. 16-25-014-01, with the Southern California Regional Rail Authority (SCRRA) for additional funding in the amount of $1,585,231 related to the locomotives lease for a total operating budget subsidy amount of $15,577,255 and for authorization to use $2.7 million of Fiscal Year 2015/16 or carryover rehabilitation/renovation funds for the procurement of the Tier IV locomotives; 4) Authorize the Chair or Executive Director, pursuant to legal counsel review, to execute the agreement on behalf of the Commission; and 5) Forward to the Commission for final action. BACKGROUND INFORMATION: BNSF Locomotives At its September 25, 2015 meeting, the SCRRA Board of Directors (SCRRA Board) took the initial step toward the implementation of a lease agreement with BNSF upon its approval to expend $5,275,000 for the lease of 40 General Electric AC4400CW locomotives from BNSF. This action was necessitated by Metrolink operating parameters wherein the train consists are set up in a “push – pull” configuration and a temporary need has been identified, which requires that a locomotive be placed at each end in order to eliminate the use of the cab-car taking the lead. On October 9, 2015, the SCRRA Board further memorialized the lease agreement with BNSF by taking action to formally amend the FY 2015/16 Metrolink budget to provide the authority to execute the contract actions needed to lease the 40 locomotives from BNSF. The budget authority approved by the SCRRA Board for the lease of the locomotives now totals an Agenda Item 10 13 additional $17,892,000 for the lease, operation, maintenance, and modification of the 40 locomotives. This figure includes the $5,275,000 previously approved by the SCRRA Board for the lease in September. New Purchase of Tier IV Locomotives On three previous occasions, the SCRRA Board approved the purchase of 40 Tier IV locomotives from EMD Corporation (EMD) at the price of $6.3 million each. Twenty locomotives have been purchased and are currently under construction. SCRRA is now working with the member agencies on finalizing the option for the additional locomotives. While the option consists of 20 locomotives for a total of 40, the member agencies have only agreed in concept to a total of 37 locomotives. DISCUSSION: BNSF Locomotives Staff is in receipt of a request from SCRRA dated October 15, 2015, which is attached wherein the agency formally requested the Commission to participate in the lease arrangement. Staff concurs with the calculation outlined in the request for the Commission to provide an additional subsidy of $1,585,231 in order to fund the BNSF locomotive lease and operations through the remainder of FY 2015/16. At its June 10 meeting, the Commission approved the FY 2015/16 budget, which included funding authorization for Metrolink operations in the amount of $16 million. At the time, staff was still actively negotiating with SCRRA the actual amount of subsidy required and ultimately agreed on an agency subsidy of approximately $14 million for the fiscal year. Since the final subsidy number came in lower than the staff estimate used to prepare the Commission’s budget, sufficient Commission approved budget authority currently exists for the Commission to participate in the BNSF lease without a budget adjustment. Staff is however, bringing this issue to the Commission’s attention in order to ensure transparency with respect to Metrolink operations and the financial resources required to support them since the lease of additional locomotives to operate in a “pull – pull” configuration was not envisioned at the time the budget was approved. Given that passenger safety is of utmost importance, staff is recommending the Commission approve the participation in the BNSF lease on a temporary basis in order to structure the train consists into a “pull – pull” configuration. New Purchase of Tier IV Locomotives South Coast Air Quality Management District grant funds have off-set the majority of costs for SCRRA to purchase the new Tier IV locomotives. Additionally, member agencies including the Commission programmed funds for locomotive rehabilitation in FYs 2014/15 and 2015/16. Agenda Item 10 14 These rehabilitation funds can easily be reprogrammed so as to minimize the financial impact to the member agencies. No budget adjustment is necessary for the locomotives purchase. Staff is now in receipt of a letter from SCRRA dated October 13, 2015, which is attached wherein the agency formally requested Commission participation in the purchase of additional locomotives. Staff concurs with the Metrolink calculation of an additional subsidy of $2.7 million for the locomotive funding plan. Of that, roughly $2.2 million of funds is available from the Commission-held Federal Transit Administration (FTA) Grant CA-05-0268. The Commission has the ability to provide a cash payment to Metrolink for this amount since the funds pass through the Commission. For the remaining funding commitment balance of $500,000, those are funds that Metrolink currently has in previously approved FTA grants (CA-05-0235-01 and CA-90-Y934) that it will need to draw down directly. Next Steps The Commission is in a solid position with respect to funding both locomotive initiatives, however, this is not the case for all member agencies. While grants are in place with the other member agencies to support the optional purchase of 17 additional Tier IV locomotives, they are reimbursable in nature and cash flow at Metrolink may in fact be an issue with respect to making a down payment on the option with EMD. The BNSF lease may also prove to be a stumbling block for other member agencies as well for similar reasons. As directed by the Commission at its September 9 meeting, staff is in the process of executing the annual MOU with SCRRA. This MOU will need to be amended to accommodate both the BNSF locomotives lease as well as the purchase of the additional Tier IV locomotives. As previously mentioned, the Commission has sufficient funds in the current budget for both locomotive procurements. Therefore, a budget amendment is not required at this time. Staff will continue to keep the Commission informed as events unfold with respect to both locomotive procurements. Financial Information In Fiscal Year Budget: Yes Year: FY 2014/15 Amount: $4,285,231 Source of Funds: Local Transportation Funds (lease); FTA (purchase) Budget Adjustment: No GL/Project Accounting No.: 254199 86101 103 25 86101 $1,585,231 (BNSF lease & operations) 004017 86102 265 33 86102 $2,700,000 (locomotives purchase) Fiscal Procedures Approved: Date: 10/19/2015 Attachments: 1)Letter Dated October 13, 2015 Regarding Purchase of Locomotives 2)Letter Dated October 15, 2015 Regarding BNSF Locomotives Lease 3)Draft MOU No. 16-25-014-02 Agenda Item 10 15 BLANK ATTACHMENT 116 BLANK October 15, 2015 SENT VIA EMAIL Anne Mayer, Executive Director Riverside County Transportation Commission 4080 Lemon St., 3rd Flr Riverside, CA 92501 AMayer@RCTC.org Dear Anne: First, I would like to thank the Riverside County Transportation Commission (RCTC) for its support and commitment to providing safe transportation options for Southern California. As you may know, at Metrolink’s regularly-scheduled meeting on October 9th, its Board of Directors approved an item to fund the 12-month lease, operation, maintenance and modification of 40 BNSF locomotives. These locomotives will be added to Metrolink trains in an abundance of caution while the NTSB continues its investigation of the Oxnard incident. The BNSF locomotives are newer than the majority of Metrolink’s current locomotives and will provide the additional benefit of improved reliability due to a reduction in mechanical delays. While there have been various meetings and discussions on this matter with the Metrolink Board and with the member agencies over the past five weeks, I wanted to advise you that Metrolink’s Board has approved the funding of the locomotives. This communication outlines the cost, each member agency’s individual contribution and information on the timeline for the funding. Additionally, I have attached the board item from the October 9, 2015 Board meeting that outlines the funding request. The total estimated cost to lease and operate 40 PTC-equipped BNSF locomotives for 12 months is $17.9 million for FY2015-16 and $6 million for FY2016-17. Individual member agency’s percentage shares for FY2015-16 will be allocated based on budgeted train miles. RCTC’s share for FY2015-16 is 8.86 percent ($1,585,231). Metrolink plans to incorporate the lease and associated costs into the operating subsidy billing cycle for each member agency. After your board has approved a budget amendment, our Finance Department will be in touch with your staff to coordinate an arrangement for billing this additional cost. FY2016-17 costs and agency shares will be included in the upcoming budget. Please note that staff assembled information and developed the cost estimates in an accelerated manner and were conservative. As potential opportunities to reduce costs are identified, staff will strive to do so in order to minimize expenses to member agencies. ATTACHMENT 2 17 Locomotive Lease Costs letter Page 2 While this action offers the benefits of safety and reliability for our employees, passengers and contractors, I realize this is an unexpected, substantial cost for your agency. Thank for for continuing to make safe transportation the top priority for Metrolink and for Southern California. I appreciate and am grateful for our partnership. Please let me know if I can provide you with additional information. Sincerely, Arthur T. Leahy Chief Executive Officer 18 One Gateway Plaza, 12th Floor, Los Angeles, CA 90012 S OUTHERN C ALIFORNIA R EGIONAL R AIL A UTHORITY TRANSMITTAL DATE: October 2, 2015 MEETING DATE: October 9, 2015 ITEM 7 TO: Board of Directors FROM: Arthur T. Leahy SUBJECT: Authorize Expenditure of Funds and Contract Actions to Support Locomotive Lease from BNSF Railway Company Issue Approval is required to amend the FY2015-16 Operating Budget and execute the contract actions required to support the lease of 40 locomotives from BNSF Railway Company. Recommendation It is recommended that the Board amend the FY2015-16 Operating Budget by $17.892 million and authorize the Chief Executive Officer to take the contract actions identified in Table 3 to modify, maintain, and operate the locomotives leased from BNSF. Alternatives The Board may decline to authorize the action and amend the Operating Budget. If the Board selects the alternative the current operating plan would require that Metrolink service be reduced by approximately half, from 165 daily trains to 80 or 90 daily trains. Background At its September 25, 2015 meeting, the Board approved an increase the FY2015-16 Operating Budget by $5.275 million and authorized the Chief Executive Officer (CEO) to execute a lease of 40 locomotives from BNSF in order to address a temporary need to place a locomotive in the lead position on all Metrolink trips. While the September 25, 2015 Board action was specific to the FY2015-16 lease, delivery and return costs totaling $5.275 million, the staff report detailed the full costs of putting the BNSF leased locomotives in service under the Authority’s operations, including ensuring Positive Train Control (PTC) compatibility. Because the BNSF locomotives are dissimilar to Metrolink’s existing locomotive fleet in many respects, the Authority’s current maintenance staff would need to be augmented and trained to maintain the leased locomotives. Additionally, spare parts would need to be procured and some modification would be required to make these locomotives compliant and compatible for Metrolink service. The September 25, 2015 Board item included cost estimates to lease, modify, operate, fuel, and maintain the leased locomotives for REVISED – as identified at the 10/9/15 Board meeting 19 Authorize Expenditure of Funds and Contract Actions to Support Locomotive Lease from BNSF Railway Company Transmittal Date: October 2, 2015 Meeting Date: October 9, 2015 Page 2 FY2015-16 totaling $12,665,000.9 million and costs for PTC modifications totaling $5,227,0006.22 million, similar to Tables 1 and 2 provided below. The current request is to obtain budget authorization for the remainder of the costs associated with putting the BNSF locomotives in service as detailed in Tables 1 and 2 below. These tables reflect the total estimated cost for utilizing the leased locomotives over a 12-month period. Table 1: BNSF Locomotive Lease Cost Not Including PTC Modifications Cost Item FY2015-16 FY2016-171 (Oct-Jun) (Jul-Sept) BNSF Lease Cost: $500/Day ($15,000/locomotive month) Staggered arrival of units (Oct-Dec): 15 units x 9 mos. (Oct-Jun) = 135 locomotive months 15 units x 8 mos. (Nov-Jun) = 120 locomotive months 10 units x 7 mos. (Dec-Jun) = 70 locomotive months 40 units total FY16: 325 locomotive months $4,875,000 40 units total FY17: 155 locomotive months $2,325,000 Delivery of locomotives ($5,000/locomotive) $200,000 Return delivery ($5,000/locomotive) $200,000 Major Component Parts - from GE or certified GE parts $800,000 distributor minus main engine covered by BNSF lease/warranty ($20,000/locomotive) Additional Labor for Maintenance – 10 persons from TCS, a new, specialized equipment maintenance contractor, additional Bombardier equipment maintenance labor ($300,000/mo.) $2,700,000 $900,000.00 Additional Fuel @ $2.20 Gal (2.8GPMI x 4,600 miles/mo. = $28,340/locomotive month) $9,210,500 $3,400,800 Diesel Fuel Offset - from forecasted underrun of FY16 fuel ($7,010,500) ($2,588,492) Wheel Truing (6 axles/locomotive @ $1500/axle = $9,000/locomotive) $360,000 Work Management System Software Modification $80,000 ($2,000/locomotive) Potential Brake, PEI, ATS, Train Line, Door Stop, Other Modifications, Parts, Development And FRA Submittals $1,000,000 ($25,000/locomotive) 1 FY2016-17 dollars are included for informational purposes only at this time and will be included in the FY2016-17 budget. 20 Authorize Expenditure of Funds and Contract Actions to Support Locomotive Lease from BNSF Railway Company Transmittal Date: October 2, 2015 Meeting Date: October 9, 2015 Page 3 Temporary Facility Modifications, Security, Miscellaneous Items - CMF, Keller Yard, and other storage yard modifications to accommodate locomotives or displaced fleet storage, equipment rental, trailers, test tools, manuals, etc., increased track inspection, repair, lubrication at LAUS and Dayton, CMF, other yards and track. PNA Ramps and Signage at Stations ($50,000/mo.) $450,000 $150,000 SUBTOTAL NOT INCLUDING PTC MODIFICATIONS $12,665,000 $4,387,308 Table 2: BNSF Locomotive Modification, Testing and Documentation for Authority’s Positive Train Control Program Cost Item FY2015-16 FY2016-17 (Oct-Jun) (Jul-Sept) PTC Consultants - design, QA/QC, FRA coordination, documentation, PM/CM $1,620,000 $540,000 PTC Contractors - software/hardware installation, modification, unit testing, configuration management ($30,000/locomotive) $1,200,000 Additional PTC Equipment/Hardware modifications or relocations from cab cars and back - SLOT 10, TMC, event recorder, etc. ($30,000/locomotive) $1,200,000 PTC Contractors - removal of software/hardware, restore to original condition, configuration management ($20,000/locomotive) $800,000 Test Trains Staffing & Operation (50 test runs @ $5,000/run) $250,000 PTC Back Office Modifications for Revised Consists $400,000 $100,000 Contingency $557,000 $174,000 SUBTOTAL PTC MODIFICATIONS $5,227,000 $1,614,000 NET TOTAL Including Potential Fuel Offset Costs $17,892,000 $6,001,308 Member agency shares will be allocated based on budgeted train-miles. For FY16, the allocation percentages are: 21 Authorize Expenditure of Funds and Contract Actions to Support Locomotive Lease from BNSF Railway Company Transmittal Date: October 2, 2015 Meeting Date: October 9, 2015 Page 4 In order to put the BNSF leased locomotives in service, operate and maintain them, the Authority must issue contract task orders or change orders to a number of existing contracts. Contract actions will be executed with existing contractors, consultants and vendors in accordance with the budget provided in Tables 1 and 2 above. Due to limited contract authority or contract expirations, Board approval is needed to authorize the following changes to the existing contracts as provided in Table 3. Table 3: Contract Actions Needed to Support BNSF Leased Locomotives NON-PTC CONTRACT ACTIONS Firm Contract # Board Action Bombardier OP120-03 Extend term and increase contract funding authorization Fuel (Merit Oil and SC Fuels) PO577-15 & PO651-15 Increase contract authority General Electric or Authorized Distributor TBD Non-competitive award and contract funding authorization TCS Maintenance Support for Locomotives TBD Non-competitive award and contract funding authorization Various Yards, Facility Modifications, Rentals and Security Various Increase contract funding authorization PTC CONTRACT ACTIONS Firm Contract # Board Action AECOM E737B-08 No cost time extension to existing General Engineering Contract - 9 month term, from 12/31/15 to 9/30/16. Systra E733-09C No cost time extension to existing Signal contract of 10.5 months, from 11/19/15 to 9/30/16. Parsons Transportation Group H1636-10 There is a separate Board Item to increase Contract Authority by $5M (for Perris Valley Line and BNSF lease) Wabtec Railway Electronics H1655-14 Increase Contract Authority by $300kRefer to Item No. 9 Telco Vendors (ATT, Verizon) Various Increase budget authority 22 Authorize Expenditure of Funds and Contract Actions to Support Locomotive Lease from BNSF Railway Company Transmittal Date: October 2, 2015 Meeting Date: October 9, 2015 Page 5 A wide variety of contract actions will be required to quickly implement the maintenance, service and parts support of the BNSF’s locomotives lease. In general these contract actions are listed in the Table 3. At its September 25, 2015 meeting, the Board authorized the lease with BNSF. This approval was in accordance with Board-approved Contract Administration Policies and Procedures, CON- 18, Emergency Procurement, which allows entering into contracts without observance of competitive bids, advertisement or notice, and CON-19, Non-Competitive Procurements, which authorizes the Board to enter into non-competitive procurements when goods or services are available only from a single source and when it is in the Authority’s best interest. Staff has analyzed the prices and found them to be competitive, fair, and reasonable, as well as available on the short notice. Risks Several low to moderate risks have been identified in association with these actions and are categorized below: 1) In order for the leased BNSF freight locomotives to be compliant with Federal Railroad Administration (FRA) regulations, modifications or approved FRA waiver requests will be required. These modifications or waivers would include Passenger Emergency Intercom (PEI), Automatic Train Stop (ATS), Door Stop Interlock, and certain brake modifications. There is a low risk that the modifications cannot be effectively made and a low to moderate risk that the FRA may not grant requested waivers in a timely manner or grant waivers at all. 2) Because the Authority is now at a relatively advanced stage of operating with PTC in FRA-approved Revenue Service Demonstration (RSD), it is highly desirable to maintain this status. The BNSF locomotives are being delivered equipped with PTC but must be modified to work within the Authority’s PTC System. Authority staff must perform tests and submit documents to the FRA in order to qualify this type of locomotive for Authority PTC service. There is a low to moderate risk that the PTC on-board equipment cannot be modified to operate within the Authority’s PTC system or that the FRA may not grant requested waivers in a timely manner. Next Steps Staff will finalize the contact actions identified in the Table 3 in order to execute the lease of locomotives from BNSF and put them in service. Staff will return on a quarterly basis, or more frequently if desired, to keep the Board apprised of status. Budget Impact The budget for the items described in this item will come from an increase in the FY2015-16 Operating Budget in the amount of $17.892 million and would be allocated based on budgeted 23 Authorize Expenditure of Funds and Contract Actions to Support Locomotive Lease from BNSF Railway Company Transmittal Date: October 2, 2015 Meeting Date: October 9, 2015 Page 6 train-miles formulae. Staff will continue to explore additional funding offset opportunities (i.e., diesel fuel savings) as a way to decrease the overall project budget. Prepared by: Darrell Maxey, Deputy Chief Operating Officer, PTC & Engineering Kimberly Yu, Deputy Chief Operating Officer, Planning and Project Delivery Lia McNeil-Kakaris, Assistant Director, Contacts and Procurement Gary Lettengarver Chief Operating Officer 24 Agreement No. 16-25-014-02 AMENDMENT NO. 1 TO MEMORANDUM OF UNDERSTANDING BETWEEN RIVERSIDE COUNTY TRANSPORTATION COMMISSION AND SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY FOR FISCAL YEAR 2015-16 ANNUAL FUNDING MOU 1.PARTIES AND DATE This Amendment No. 1 to the memorandum of understanding (MOU) is effective as of this ___ day of ____________ 2015, by and between the Southern California Regional Rail Authority (hereinafter referred to as “SCRRA”), One Gateway Plaza 12th Floor, Los Angeles, California 90012, and the Riverside County Transportation Commission, 4080 Lemon Street, 3rd Floor, Riverside, California 92501, a public agency (hereinafter referred to as “RCTC”), which are sometimes individually referred to as “PARTY”, and collectively referred to as “PARTIES”. 2.RECITALS 2.1 The parties have entered into an MOU dated _________ for the purpose of defining RCTC’s financial commitments to the SCRRA fiscal year (FY) 2015-16 operating budget and rehabilitation/renovation and capital budget (collectively, the “BUDGET”) 2.2 The parties now desire to amend the MOU for additional funding related to the lease, operation, maintenance, and modification of 40 BNSF Railway (BNSF) locomotives and for authorization to use rehabilitation/renovation funds for the procurement of 17 Tier IV locomotives. 3.TERMS 3.1 Exhibit "A" of the MOU, titled "SCRRA Budget", shall be replaced, in its entirety, with the version of Exhibit "A" attached to this Amendment and incorporated herein by reference. 3.2 The maximum operating budget subsidy for the BNSF locomotives lease pursuant to this Amendment shall be One Million Five Hundred Eighty-Five Thousand Two Hundred Thirty-One Dollars ($1,585,231) for a total net subsidy amount of $15,577,254.40, as further set forth in Exhibit “A” attached to this Amendment and incorporated herein by reference. 3.3 SCRRA shall reprogram Two Million Seven Hundred Thousand Dollars ($2,700,000) of FY 2015/16 rehabilitation/renovation or Carryover rehabilitation/renovation & new capital budget funds for the procurement of 17 new Metrolink Tier IV locomotives, as further set forth in Exhibit "A" attached to this Amendment and incorporated herein by reference. ATTACHMENT 3 25 3.4 Except as amended by this Amendment, all provisions of the Master Agreement, including without limitation the indemnity and insurance provisions, shall remain in full force and effect and shall govern the actions of the parties under this Amendment. [Signatures on following page] 17336.00000\1514236.2 2 26 SIGNATURE PAGE TO AGREEMENT NO. 16-25-014-02 IN WITNESS WHEREOF, the parties hereto have executed this Amendment on the date first herein above written. SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY RIVERSIDE COUNTY TRANSPORTATION COMMISSION Chief Executive Officer Executive Director Reviewed and Approved as to Form: SCRRA Legal Counsel RCTC General Legal Counsel 17336.00000\1514236.2 3 27 BLANK EXHIBIT A-SCRRA BUDGET RCTC’s shares of SCRRA’s FY 2015-2016 Budget, as approved by the SCRRA Board of Directors in July 2015, as amended in October 2015, are shown below: Operating Budget: Expenses $ 23,232,425.56 Revenues 7,655,171.16 Net Subsidy $ 15,577,254.401 Rehabilitation/Renovation New Authority Budget: RCTC Share $ 4,169,755.562 Rotem Settlement 456,894.00 Total $ 4,626,649.56 New Capital Authority Budget: Ticket Vending Machines $ 4,822,318.13 Carryover Rehabilitation/Renovation & New Capital Budget: RCTC Share $ 5,134,000.002 1 Includes $1,585,231 for the lease, operation, maintenance and modification of 40 BNSF locomotives. 2 Includes $2.7 million reprogrammed from rehabilitation of locomotives to the purchase of 17 Tier IV locomotives. Exhibit A 17336.00000\1514236.2 28