Title
Annual Operations Funding Agreement with Valley Metro Rail for Operational Costs for Light Rail Services for Fiscal Year 2025-26 (Ordinance S-52017) - Citywide
Description
Request to authorize the City Manager, or his designee, to execute an annual operations funding agreement with Valley Metro Rail, Inc., as required each year by the City and Valley Metro's Operations Master Cooperative Funding Agreement 125068, to pay the City of Phoenix's share of light rail service and agency operating costs for Fiscal Year (FY) 2025-26. Further request to authorize the City Controller to disburse all funds related to this item. The annual agreement's value will not exceed $75,417,000.
Report
Summary
The operations and maintenance budget of Valley Metro Rail, Inc. (VMR) includes costs for: transportation contractors, propulsion power, vehicle maintenance, systems/facilities maintenance, materials and supplies, VMR staff, security, consultants, regional customer services, utilities, liability insurance, and general and administrative expenses.
Financial Impact
For FY 2025-26, the City's total estimated share of VMR's cost is $75,417,000, divided as follows:
Agency costs - $1,853,000; and
Operating costs for light rail service - $73,564,000
Funding is available in the Public Transit Department's operating budget.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit Department.