Title
Enter into Agreement with Valley Metro Rail for Operational Costs for Light Rail Services
Description
This report requests the Transportation, Infrastructure and Innovation Subcommittee recommend City Council approval to enter into a contract with Valley Metro Rail, Inc. (VMR) to pay Phoenix's share of light rail and agency operating costs for VMR's light rail service in an amount not to exceed $8,048,000.
THIS ITEM IS FOR CONSENT ACTION.
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 regional light rail transit operations. Without CARES Act funding, Phoenix’s portion of light rail operations costs, which is based on service miles operated within each jurisdiction, would have been $32.6 million. Funds are available in the Public Transit Department’s proposed operating budget using Transportation 2050 funds.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit Department.