Title
Enter into Agreement with Valley Metro Rail for Operational Costs for Light Rail Services (Ordinance S-48610)
Description
Request to authorize the City Manager, or his designee, to enter into an agreement with Valley Metro Rail, Inc. to pay the City of Phoenix’s share of light rail and agency operating costs for Fiscal Year 2022-23. Further request to authorize the City Controller to disburse all funds related to this item. The agreement's value will not exceed $29,713,000.
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; safety; consultants; regional customer services; utilities; liability insurance; and general and administrative expenses.
Financial Impact
For Fiscal Year 2022-23, the City’s total estimated share of VMR’s costs is $48,494,000, broken down as follows:
- Agency costs - $1,104,000; and
- Operating costs for light rail service - $47,390,000.
The City's share of operating costs will be offset with $18,781,000 in federal funds received by VMR through the Federal Transit Administration under the American Rescue Plan Act, for a remainder of $29,713,000.
Funding is available in the Public Transit Department's Operating budget using Transportation 2050 funds.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit Department.