AGENDA ITEM 9-A
ACTION ITEM
TO:
CHAIRMAN COVINGTON AND THE VRE OPERATIONS BOARD
FROM:
DALE ZEHNER
DATE:
MARCH 16, 2012
RE:
AUTHORIZATION TO ENTER INTO
EXECUTIVE SEARCH SERVICES
A
CONTRACT
FOR
RECOMMENDATION:
The VRE Operations Board is recommending that the VRE Chief Executive
Officer enter into a contract with Krauthamer and Associates of Chevy Chase,
Maryland for executive search services in the amount of $72,500, plus a 5%
contingency of $3,625, for a total amount not to exceed $76,125.
BACKGROUND:
At the February meeting, the Operations Board discussed the process for
recruiting and selecting the next VRE CEO. A decision was made to procure an
executive search firm overseen by the VRE Operations Board Executive
Committee.
On February 28, 2012, an RFP was issued and six proposals, listed below, were
received on March 13, 2012. The Executive Committee met on March 14, 2012
and reviewed the responses.
The technical proposal received from Krauthamer and Associates scored the
highest based on the published selection criteria which included relevant
successful experience in recruiting for a CEO position in public transit, railroad
industry or transportation industry; the qualifications and experience of key
personnel; demonstrated experience and knowledge of the scope of services,
RFP requirements, and dealing with local and state governments; and the value
of the cost proposal.
Krauthamer and Associates has worked with many agencies in the transportation
industry including APTA, WMATA, CSX Transportation, MBTA, Long Island
Railroad, New Jersey Transit and SEPTA. They articulated the urgency in filling
this position and proposed the commencement of interviews within 45 days from
the initiation of the search. Based on the proposal and subsequent evaluation,
the selection committee is recommending award to Krauthamer and Associates.
Firm
Krauthamer and Associates
KL Executive Search, LLC
JuriStaff, Inc.
Gilbert Tweed Associates
Edna S. Rice Executive Recruiters, Inc.
Ralph Andersen & Associates
Location
Chevy Chase, MD
Kensington, MD
Philadelphia, PA
New York, NY
Bellaire, TX
Rocklin, CA
FISCAL IMPACT
This contract will be funded via the FY12 VRE Operating budget.
2
TO:
FROM:
DATE:
RE:
CHAIRMAN COVINGTON AND THE VRE OPERATIONS BOARD
DALE ZEHNER
MARCH 16, 2012
AUTHORIZATION TO ENTER INTO A CONTRACT FOR
EXECUTIVE SEARCH SERVICES
RESOLUTION
9A-03-2012
OF THE
VIRGINIA RAILWAY EXPRESS
OPERATIONS BOARD
WHEREAS, the VRE Operations Board recommended the procurement of an
executive search firm, overseen by the VRE Operations Board Executive
Committee, to assist in the recruitment and selection of the next VRE CEO; and,
WHEREAS, on February 28, 2012, an RFP was issued; and,
WHEREAS, six proposals were received on March 13, 2012.
NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board
recommends that the VRE Chief Executive Officer enter into a contract with
Krauthamer and Associates of Chevy Chase, Maryland for executive search
services in the amount of $72,500, plus a 5% contingency of $3,625, for a total
amount not to exceed $76,125.
3
AGENDA ITEM 9-B
ACTION ITEM
TO:
CHAIRMAN COVINGTON AND THE VRE OPERATIONS BOARD
FROM:
DALE ZEHNER
DATE:
MARCH 16, 2012
RE:
AUTHORIZATION TO APPROVE
POLICY AMENDMENTS
PRTC/VRE
PERSONNEL
RECOMMENDATION:
The VRE Operations Board is being asked to recommend that the Potomac and
Rappahannock Transportation Commission approve amendments to the
PRTC/VRE Personnel Policy.
BACKGROUND:
PRTC/VRE’s adopted personnel policy has stood the test of time in large
measure, but has also required periodic modifications based on first-hand
experience in applying the policy to current personnel situations. The last set of
policy amendments adopted by the VRE Operations Board and Potomac and
Rappahannock Transportation Commission (PRTC) occurred in February 2005.
A second set of amendments is now being recommended for the reasons cited
below. Inasmuch as the amendments as proposed would affect PRTC and VRE
employees, VRE management has conferred with the PRTC Executive Director
on these issues and his reactions are included in the information below.
Amendment 1 - (Policy IV Pay Plan and Employee Compensation, Section I.B)
PRTC reassesses this policy in the course of the periodic parity studies that the
personnel policy says are to be completed every three years. However, the last
such study was in FY 2007 and the one that was scheduled for FY 2010 was
deferred indeterminately for austerity reasons. As a result, the General Payscale
(attachment 1), other than for cost of living adjustments, has not been updated to
account for changed market conditions since FY 2007. As a result, the
classifications now lag significantly behind counterparts such as Fairfax and
Prince William Counties (attachment 2). This administrative amendment would
modify the PRTC/VRE General Payscale to create three higher classifications
comparable to those classifications present in Fairfax and Prince William
Counties. The proposed revised payscale appears here as attachment three.
Making this change has no budget consequence since the General Payscale is
wholly independent of how positions are classified. The PRTC Executive
Director is supportive of this proposed change, seeing it as appropriate so that
position classifications or reclassifications that might be proposed in the future
can be properly made.
Amendment 2 – (Policy XIX Awards and Special Recognition, Section II)
From time to time, PRTC and/or VRE employees perform extraordinary efforts for
the organization(s) that warrant special recognition in the form of a one-time,
monetary bonus. Presently, the PRTC Executive Director and the VRE Chief
Executive Officer have authority to award bonuses of $250 or less, with
Operations Board or Commission approval for bonuses over $250. These
thresholds have been operational since FY 2001. A recommendation is now
being made to increase the authority limit delegated to the chief executives to
$500. The new limit restores the diminished real-dollar value of the delegated
authority and accounts for the fact that the scope of complexity of both the VRE
and PRTC operations has grown appreciably since FY 2001. The PRTC
Executive Director is supportive of this proposed change.
Amendment 3 – (Policy XI Promotions, Demotions, Reclassifications, and
Transfers, Section III.C)
Under the current policy, an existing employee who applies for a competitively
advertised position within PRTC/VRE, and is then deemed the most qualified
candidate, is limited by the policy’s rules of promotion in establishing the level of
compensation. The only limitation applicable to the external candidate is that the
starting salary must be within the classification range. The practical result is that
there is less latitude to account for skills and experience in establishing the level
of compensation when an internal candidate is found to be the most qualified.
To establish parity between internal and external candidates vying for a position,
it is recommended that the following language be added to Policy XI, Section
III.C:
Equal opportunity shall be provided to everyone applying for a
competitively advertised position in which both internal and external candidates
apply. Therefore, if an internal candidate is found to be the most qualified
applicant for such a position, following a full and competitive search, and the
results of the search evidence that an exception to the compensation limitation
present in this Policy for internal promotions is warranted, that candidate can be
offered compensation anywhere within the advertised classification range.
The PRTC Executive Director is supportive of this proposed change but
recommends that exceptions to the compensation limitation present in the
existing policy require the concurrence of the PRTC or VRE Chairman to provide
a level of comfort that the exception is warranted. The VRE CEO recommends
that discretion be left to the PRTC Executive Director or VRE CEO based on the
fact that another level of approval after the selection process is complete
impedes the equity of the process.
Because these recommended amendments apply to employees working at both
PRTC and VRE, the VRE Operations Board is being asked to recommend these
changes to the PRTC for approval at its April 5, 2012 meeting. As this action is
specific to VRE and PRTC employees, no action by NVTC is required.
FISCAL IMPACT:
There is no fiscal impact associated with this action.
TO:
FROM:
DATE:
RE:
CHAIRMAN COVINGTON AND THE VRE OPERATIONS BOARD
DALE ZEHNER
MARCH 16, 2012
AUTHORIZATION TO APPROVE PRTC/VRE PERSONNEL
POLICY AMENDMENTS
RESOLUTION
9B-03-2012
OF THE
VIRGINIA RAILWAY EXPRESS
OPERATIONS BOARD
WHEREAS, personnel matters involving PRTC and VRE staffs are governed by a
common, adopted personnel policy; and,
WHEREAS, occasionally there arises a need for policy amendments for statutory
and other reasons that the existing policy does not adequately address; and,
WHEREAS, the adopted personnel policy was last amended in February 2005,
and needs further amendments at this time; and,
WHEREAS, the amendments as proposed are the end result of discussions
involving PRTC and VRE management to identify needed changes, discussions
of policy options for dealing with these needed changes, and review to be certain
that the narrative products accomplished what was intended; and,
WHEREAS, the amendments as proposed will be reviewed by PRTC and VRE
legal counsel as appropriate; and,
WHEREAS, the amendments as proposed are summarized in the background
section of the memo accompanying this resolution.
NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board
recommends that the Potomac and Rappahannock Transportation Commission
approve amendments to the PRTC/VRE Personnel Policy.
PRTC/VRE
General Payscale FY 2012
Annual/Bi-weekly/Hourly Salary
Effective 7/1/11
Minimum
Mid-range
Maximum
A
19,170.39
737.32
9.83
25,496.62
980.64
13.08
31,822.85
1223.96
16.32
B
20,167.31
775.67
10.34
26,822.52
1,031.64
13.76
33,477.73
1,287.61
17.17
C
21,216.15
816.01
10.88
28,217.48
1,085.29
14.47
35,218.81
1,354.57
18.06
D
22,319.84
858.46
11.45
29,685.39
1,141.75
15.22
37,050.94
1,425.04
19.00
E
23,478.77
903.03
12.04
31,226.76
1,201.03
16.01
38,974.75
1,499.03
19.99
F
24,700.25
950.01
12.67
32,851.33
1,263.51
16.85
41,002.41
1,577.02
21.03
G
25,984.71
999.41
13.33
34,559.67
1,329.22
17.72
43,134.63
1,659.02
22.12
H
27,335.83
1,051.38
14.02
36,356.65
1,398.33
18.64
45,377.47
1,745.29
23.27
I
28,758.34
1,106.09
14.75
38,248.59
1,471.10
19.61
47,738.84
1,836.11
24.48
J
30,253.38
1,163.59
15.51
40,237.00
1,547.58
20.63
50,220.62
1,931.56
25.75
K
31,826.09
1,224.08
16.32
42,328.70
1,628.03
21.71
52,831.31
2,031.97
27.09
L
33,481.60
1,287.75
17.17
44,530.53
1,712.71
22.84
55,579.46
2,137.67
28.50
GRADE
PRTC/VRE
General Payscale FY 2012
Annual/Bi-weekly/Hourly Salary
Effective 7/1/11
M
35,221.46
1,354.67
18.06
46,844.54
1,801.71
24.02
58,467.62
2,248.75
29.98
N
37,053.72
1,425.14
19.00
49,281.45
1,895.44
25.27
61,509.18
2,365.74
31.54
O
38,980.95
1,499.27
19.99
51,844.67
1,994.03
26.59
64,708.38
2,488.78
33.18
P
41,006.85
1,577.19
21.03
54,539.10
2,097.66
27.97
68,071.36
2,618.13
34.91
Q
43,139.13
1,659.20
22.12
57,375.04
2,206.73
29.42
71,610.95
2,754.27
36.72
R
45,383.74
1,745.53
23.27
60,360.37
2,321.55
30.95
75,337.00
2,897.58
38.63
S
47,742.07
1,836.23
24.48
63,496.95
2,442.19
32.56
79,251.83
3,048.15
40.64
T
50,224.81
1,931.72
25.76
66,799.00
2,569.19
34.26
83,373.18
3,206.66
42.76
U
52,836.79
2,032.18
27.10
70,272.92
2,702.80
36.04
87,709.06
3,373.43
44.98
V
55,584.28
2,137.86
28.50
73,927.09
2,843.35
37.91
92,269.90
3,548.84
47.32
W
58,475.30
2,249.05
29.99
77,772.16
2,991.24
39.88
97,069.01
3,733.42
49.78
X
61,515.42
2,365.98
31.55
81,815.51
3,146.75
41.96
102,115.61
3,927.52
52.37
Y
64,713.90
2,489.00
33.19
86,069.49
3,310.36
44.14
107,425.07
4,131.73
55.09
PRTC/VRE
General Payscale FY 2012
Annual/Bi-weekly/Hourly Salary
Effective 7/1/11
Z
68,078.72
2,618.41
34.91
90,544.69
3,482.49
46.43
113,010.67
4,346.56
57.95
AA
71,619.90
2,754.61
36.73
95,254.47
3,663.63
48.85
118,889.04
4,572.66
60.97
BB
75,343.68
2,897.83
38.64
100,207.09
3,854.12
51.39
125,070.50
4,810.40
64.14
CC
79,260.74
3,048.49
40.65
105,416.79
4,054.49
54.06
131,572.83
5,060.49
67.47
DD
83,383.96
3,207.08
42.76
110,900.67
4,265.41
56.87
138,417.37
5,323.75
70.98
EE
87,719.20
3,373.82
44.98
116,666.54
4,487.17
59.83
145,613.88
5,600.53
74.67
FF
92,279.77
3,549.22
47.32
122,732.09
4,720.47
62.94
153,184.41
5,891.71
78.56
GG
97,078.53
3,733.79
49.78
129,114.45
4,965.94
66.21
161,150.36
6,198.09
82.64
HH
102,126.61
3,927.95
52.37
135,828.40
5,224.17
69.66
169,530.18
6,520.39
86.94
II
107,437.20
4,132.20
55.10
142,891.47
5,495.83
73.28
178,345.75
6,859.45
91.46
JJ
113,023.93
4,347.07
57.96
150,321.83
5,781.61
77.09
187,619.73
7,216.14
96.22
PRTC/VRE
General Payscale FY 2012
Annual/Bi-weekly/Hourly Salary
Effective 7/1/11
Minimum
Mid-range
Maximum
A
19,170.39
737.32
9.83
25,496.62
980.64
13.08
31,822.85
1223.96
16.32
B
20,167.31
775.67
10.34
26,822.52
1,031.64
13.76
33,477.73
1,287.61
17.17
C
21,216.15
816.01
10.88
28,217.48
1,085.29
14.47
35,218.81
1,354.57
18.06
D
22,319.84
858.46
11.45
29,685.39
1,141.75
15.22
37,050.94
1,425.04
19.00
E
23,478.77
903.03
12.04
31,226.76
1,201.03
16.01
38,974.75
1,499.03
19.99
F
24,700.25
950.01
12.67
32,851.33
1,263.51
16.85
41,002.41
1,577.02
21.03
G
25,984.71
999.41
13.33
34,559.67
1,329.22
17.72
43,134.63
1,659.02
22.12
H
27,335.83
1,051.38
14.02
36,356.65
1,398.33
18.64
45,377.47
1,745.29
23.27
I
28,758.34
1,106.09
14.75
38,248.59
1,471.10
19.61
47,738.84
1,836.11
24.48
J
30,253.38
1,163.59
15.51
40,237.00
1,547.58
20.63
50,220.62
1,931.56
25.75
K
31,826.09
1,224.08
16.32
42,328.70
1,628.03
21.71
52,831.31
2,031.97
27.09
L
33,481.60
1,287.75
17.17
44,530.53
1,712.71
22.84
55,579.46
2,137.67
28.50
GRADE
PRTC/VRE
General Payscale FY 2012
Annual/Bi-weekly/Hourly Salary
Effective 7/1/11
M
35,221.46
1,354.67
18.06
46,844.54
1,801.71
24.02
58,467.62
2,248.75
29.98
N
37,053.72
1,425.14
19.00
49,281.45
1,895.44
25.27
61,509.18
2,365.74
31.54
O
38,980.95
1,499.27
19.99
51,844.67
1,994.03
26.59
64,708.38
2,488.78
33.18
P
41,006.85
1,577.19
21.03
54,539.10
2,097.66
27.97
68,071.36
2,618.13
34.91
Q
43,139.13
1,659.20
22.12
57,375.04
2,206.73
29.42
71,610.95
2,754.27
36.72
R
45,383.74
1,745.53
23.27
60,360.37
2,321.55
30.95
75,337.00
2,897.58
38.63
S
47,742.07
1,836.23
24.48
63,496.95
2,442.19
32.56
79,251.83
3,048.15
40.64
T
50,224.81
1,931.72
25.76
66,799.00
2,569.19
34.26
83,373.18
3,206.66
42.76
U
52,836.79
2,032.18
27.10
70,272.92
2,702.80
36.04
87,709.06
3,373.43
44.98
V
55,584.28
2,137.86
28.50
73,927.09
2,843.35
37.91
92,269.90
3,548.84
47.32
W
58,475.30
2,249.05
29.99
77,772.16
2,991.24
39.88
97,069.01
3,733.42
49.78
X
61,515.42
2,365.98
31.55
81,815.51
3,146.75
41.96
102,115.61
3,927.52
52.37
Y
64,713.90
2,489.00
33.19
86,069.49
3,310.36
44.14
107,425.07
4,131.73
55.09
PRTC/VRE
General Payscale FY 2012
Annual/Bi-weekly/Hourly Salary
Effective 7/1/11
Z
68,078.72
2,618.41
34.91
90,544.69
3,482.49
46.43
113,010.67
4,346.56
57.95
AA
71,619.90
2,754.61
36.73
95,254.47
3,663.63
48.85
118,889.04
4,572.66
60.97
BB
75,343.68
2,897.83
38.64
100,207.09
3,854.12
51.39
125,070.50
4,810.40
64.14
CC
79,260.74
3,048.49
40.65
105,416.79
4,054.49
54.06
131,572.83
5,060.49
67.47
DD
83,383.96
3,207.08
42.76
110,900.67
4,265.41
56.87
138,417.37
5,323.75
70.98
EE
87,719.20
3,373.82
44.98
116,666.54
4,487.17
59.83
145,613.88
5,600.53
74.67
FF
92,279.77
3,549.22
47.32
122,732.09
4,720.47
62.94
153,184.41
5,891.71
78.56
GG
97,078.53
3,733.79
49.78
129,114.45
4,965.94
66.21
161,150.36
6,198.09
82.64
AGENDA ITEM 9-C
ACTION ITEM
TO:
CHAIRMAN COVINGTON AND THE VRE OPERATIONS BOARD
FROM:
DALE ZEHNER
DATE:
MARCH 16, 2012
RE:
AUTHORIZATION TO ISSUE A SOLICITATION FOR THE ANALYSIS
OF RAIL EQUIPMENT AND MAINTENANCE MANAGEMENT
_____________________________________________________________________
RECOMMENDATION:
The VRE Operations Board is being asked to authorize the Chief Executive Officer to
issue a solicitation for an independent third party analysis of VRE rail equipment and
maintenance management.
BACKGROUND:
On June 18, 2004, a multi-year initiative to shift fleet maintenance to VRE’s outlying
yards was approved by the Operations Board. As part of this initiative, construction
projects at both yards were initiated to include inspection pits, service and inspection
buildings, car washes, and a warehouse facility. Through these projects, VRE has
been able to fully assume equipment maintenance functions. In addition to establishing
the required infrastructure to support the maintenance of equipment, VRE has also
procured new locomotives and passenger cars to further support operational needs and
promote mechanical operations synergies.
On January 20, 2012, the Operations Board approved the issuance of a task order to
VRE’s mechanical engineering consultant to study and make recommendations
regarding VRE’s long term rolling stock maintenance, equipment, and facility needs.
This effort will result in an action plan that addresses life cycle maintenance and
overhaul requirements for all VRE rolling stock. A comprehensive view of the current
maintenance organization, structures, practices, and facilities is underway and once
complete, this summer, will be summarized along with the identification of future
requirements.
Coordinated with, but independent of, this work, VRE staff analysis has brought to light
the potential for major cost savings through consolidation of management functions and
lean management principles, which could ultimately lead to a shift to in-house
maintenance operations. This authorization would allow the pursuit of an independent
third party analysis to verify the magnitude of potential cost savings as well as assist in
the development of project timelines and approaches to achieving such.
FISCAL IMPACT:
There is no fiscal impact associated with this action.
TO:
FROM:
DATE:
RE:
CHAIRMAN COVINGTON AND THE VRE OPERATIONS BOARD
DALE ZEHNER
MARCH 16, 2012
AUTHORIZATION TO ISSUE A SOLICITATION FOR THE ANALYSIS
OF RAIL EQUIPMENT AND MAINTENANCE MANAGEMENT
RESOLUTION
9c-03-2012
OF THE
VIRGINIA RAILWAY EXPRESS
OPERATIONS BOARD
WHEREAS, on June 18, 2004, a multi-year initiative to shift fleet maintenance to VRE’s
outlying yards was approved by the Operations Board; and,
WHEREAS, as part of this initiative, construction projects at both yards were initiated to
include inspection pits, service and inspection buildings, car washes, and a warehouse
facility; and,
WHEREAS, through these projects, VRE has been able to fully assume equipment
maintenance functions; and,
WHEREAS, on January 20, 2012, the Operations Board approved the issuance of a
task order to study and make recommendations regarding VRE’s long term rolling stock
maintenance, equipment, and facility needs; and,
WHEREAS, related analysis has brought to light the potential for major cost savings
through consolidation of management functions and lean management principles; and,
WHEREAS, this authorization would allow the pursuit of an independent third party
analysis to verify the magnitude of potential cost savings as well as assist in the
development of project timelines and approaches to achieving such.
NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board authorizes
the Chief Executive Officer to issue a solicitation for an independent third party analysis
of VRE rail equipment and maintenance management.