Title
Enter into Agreement with Valley Metro Rail for Operational Costs for Light Rail Services (Ordinance S-46746)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with Valley Metro Rail, Inc. (VMR) to pay Phoenix's share of light rail operations and agency operating costs for Fiscal Year (FY) 2020-21, and authorizing the City Controller to disburse funds in an amount not to exceed $8,048,000.
Report
Summary
The VMR operations and maintenance budget includes the costs of: transportation contractors, propulsion power, vehicle maintenance, systems and facilities maintenance/materials/supplies, VMR staff, security and fare inspection services, regional customer service, utilities, liability insurance, and general and administrative expenses.
Financial Impact
For FY 2020-21, Phoenix's estimated share of VMR's agency operating cost is $924,000 and Phoenix's estimated share of VMR's light rail operations cost is $7,124,000. Phoenix's estimated share of light rail operations is significantly lower than usual as the result of VMR receiving $45.1 million through the Federal Transit Administration from the Coronavirus Aid, Relief, and Economic Security (CARES) Act to be used to fund transit operations. Funds are available in the Public Transit Department’s proposed operating budget using Transit 2050 funds.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit Department.