AGENDA ITEM 10-A
ACTION ITEM
TO:
CHAIRMAN BULOVA AND THE VRE OPERATIONS BOARD
FROM:
DALE ZEHNER
DATE:
DECEMBER 16, 2011
SUBJECT: REFERRAL OF THE REVISED FY 2012 AND RECOMMENDED
FY 2013 VRE OPERATING AND CAPITAL BUDGETS TO THE
COMMISSIONS AND LOCALITIES
RECOMMENDATION:
The VRE Operations Board is being asked to adopt the revised FY 2012 VRE
Operating and Capital Budget and the recommended FY 2013 VRE Operating
and Capital Budget, and refer them to the Commissions for their consideration
and subsequent referral to the jurisdictions for their formal review and adoption.
BACKGROUND:
In accordance with the VRE Master Agreement, which outlines the process for
annual budget approval, the preliminary FY 2013 VRE Operating and Capital
Budget was submitted for review at the August VRE Operations Board meeting.
Since that time, it has been discussed at numerous meetings of the CAO Task
Force. The CAO Task Force met on December 8th to present their final
recommendations and discuss VRE responses to those recommendations.
DISCUSSION:
The major assumptions in the FY 2013 budget are as follows:







Jurisdictional subsidy of $16,428,800, an increase of $484,882 or 3%
compared to the FY 2012 level. A payment by Spotsylvania County of the
amounts waived in prior years will be a mid-year credit to the other
jurisdictions.
Fare increase of 3% and a projected average daily ridership of 19,000
passengers, which in combination increases projected fare revenue by
$3.9 million over the FY 2012 adopted budget amount to a total of
$34.5M.
A reduction in federal formula funds for capital projects based on a
reduction to VRE’s FY 2012 award plus an additional 1% decrease in
anticipated FY 2013 funding. Final projections continue to be decided at
the congressional level.
Continuation of a 32-train operation (30 revenue trains).
Capital matching funds from the State of 50% of the non-federal share for
new projects.
State operating funds of $6.1 million, compared to $5.3M budgeted in FY
2012. Actual award for FY 2012 was $6.9M.
Fuel estimated at $3.25/gallon for a total cost of $5.6 million.
The capital budget includes the following system capital projects for FY 2013,
including required local match:



Spotsylvania third track - $8.2M (completion of funding required for
$20.3M project)
Fare collection upgrade - $1.8M (completion of funding required for
estimated cost of purchase and installation of new fare collection system
– options will be reviewed after requirements study is completed)
Rolling stock (railcars) - $5.5M (second year of funding for multi-year
project to purchase 15 replacement Gallery rail cars)
Material expenditure line item changes are noted below; adjustments are in
comparison to the FY 2012 adopted budget.


Fuel budget has increased by $790k based on an average per gallon cost
of $3.25 compared to the FY 2012 adopted budget per gallon estimate of
$2.70.
Retail sales commissions in Budget and Finance were increased by
$675,000, based on WMATA’s discontinuation of the Smart Benefits card.
This has caused the bulk of the ridership to purchase tickets through the
2



Commuter Direct system, which has a higher commission rate based on
the higher level of service required.
Equipment maintenance increased by $500k to reflect additional oversight
for the equipment maintenance contract and higher than anticipated costs
for the required ten year periodic maintenance (COT&S) for the remaining
older Gallery railcars.
Keolis contract costs are budgeted at a net increase of $710,000 to reflect
a 3.5% increase to the 12-month October CPI, in accordance with the
contract requirements.
Access fee costs increased by $1.1 million to reflect an estimated
increase to the AAR index for the first quarter of calendar 2012 for Amtrak
and the contractual increase of 4% for CSX and NS.
The budget also includes a six-year financial forecast for the period FY 2013
through FY 2018. A six-year forecast was prepared that includes a 4% fare
increase in FY 2015 and FY 2017 plus a 0% subsidy increase in years FY 2014 –
FY 2018.
REVISED FY 2012 OPERATING AND CAPITAL BUDGET
The FY 2012 budget has been revised to reflect current projections for revenue
and expenses. The major changes are as follows:






Fare revenue is increased by $2.4M based on current ridership projections
to $33.0M.
The State operating grant is increased by $1.5 to reflect the actual higher
grant award.
Access fee reimbursement decreased by $600k based on transition to
state funding of match to federal access fee grant; state match will not be
available until older grant funds are depleted.
State capital grants are increased by $17.0 million and federal capital
grants by $15.6M to reflect the following:
o Additional funding provided through DRPT for the Spotsylvania
third track ($4.6M) and purchase of replacement rail cars ($17.6M)
o STP (formerly bonus obligation) funds for locomotives ($3.0M)
o VDOT/locally administered project funds for the Alexandria tunnel
($7.4M)
Use of capital reserve for additional match for Spotsylvania third track, rail
car projects ($2.2M), and additional capital needs ($1.5M)
Increase of $1.0M for higher cost per gallon of fuel
3
TO:
FROM:
DATE:
RE:
CHAIRMAN BULOVA AND THE VRE OPERATIONS BOARD
DALE ZEHNER
DECEMBER 16, 2011
REFERRAL OF THE REVISED FY 2012 AND RECOMMENDED
2013 VRE OPERATING AND CAPITAL BUDGETS TO THE
COMMISSIONS AND LOCALITIES
RESOLUTION
10A-12-2011
OF THE
VIRGINIA RAILWAY EXPRESS
OPERATIONS BOARD
WHEREAS, the VRE Master Agreement requires that the Commissions be
presented with a fiscal year budget for their consideration at their respective
January meetings prior to the commencement of the subject fiscal year; and,
WHEREAS, the VRE Chief Executive Officer has provided the VRE Operations
Board with the FY 2013 Operating and Capital Budget within the guidelines
developed in concert with the jurisdictional chief administrative officers; and,
WHEREAS, VRE staff recommends a budget built on an average daily ridership
of 19,000 and 32 trains.
NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board does
hereby recommend that the Commissions adopt the revised FY 2012 and
recommended FY 2013 VRE Operating and Capital Budgets and forward the FY
2013 budget to the local jurisdictions for inclusion in their budgets and
appropriations in accordance with the Master Agreement; and,
BE IT FURTHER RESOLVED THAT, the VRE Operations Board recommends
that the Executive Directors of both PRTC and NVTC submit to the
Transportation Planning Board of the National Capital Region and to the Federal
Transit Administration or other federal agencies, the appropriate Transit
Improvement Program and grant applications for FY 2012 and FY 2013; and,
BE IT FURTHER RESOLVED THAT, the VRE Operations Board recommends
that the Executive Director of NVTC be authorized to submit to the
Commonwealth the approved budget as part of the FY 2013 state aid grant
applications.
4
AGENDA ITEM 10-B
ACTION ITEM
TO:
CHAIRMAN BULOVA AND THE VRE OPERATIONS BOARD
FROM:
DALE ZEHNER
DATE:
DECEMBER 16, 2011
RE:
AUTHORIZATION TO AMEND THE CONTRACT WITH SCHEIDT &
BACHMANN FOR FARE COLLECTION EQUIPMENT MAINTENANCE
_____________________________________________________________________
RECOMMENDATION:
The VRE Operations Board is being asked to authorize the Chief Executive Officer to
amend the Scheidt & Bachmann (S&B) contract for fare collection system maintenance
in order to add three years and five months of maintenance services in an amount not
to exceed $2,438,931, for a total contract value not to exceed $9,876,968.
BACKGROUND:
In June 2000, the VRE Operations Board authorized a contract with S&B for the
delivery of a new fare collection system. In October 2002, the system was accepted
and four years of maintenance support, which includes two full-time fare collection
maintenance technicians, began.
The Operations Board has since authorized
extensions to this contract in 2006, 2007 and 2011. The current maintenance
agreement is set to expire on January 31, 2012 and a further contract extension for this
work is required due to warranty issues and proprietary licenses.
This proposed extension continues the support of two full-time technicians, while also
adding a software support module which has become necessary due to increasingly
stringent requirements for data security and compliance with the Payment Card Industry
(PCI) standards. This Service Level Agreement provides for equipment preventative
maintenance and repair, replenishment of the fare collection spare parts inventory,
software revisions, and updates required for fare collection database maintenance and
1
to maintain PCI compliance. The amendment also aligns the term of the maintenance
agreement with the VRE fiscal calendar.
This item was presented to the VRE Operations Board in November 2011. The Board
requested additional information on pricing and other options to extending the contract.
A white paper was forwarded to Board members after the meeting, which included
additional background information on pricing and the reasons for sole sourcing the
system maintenance based on proprietary and warranty issues (see Attachment). No
concerns were raised based on the information provided so authorization is being
sought at this time.
FISCAL IMPACT:
Funding for this project is included in VRE’s Capital Improvement Program as part of
the fare collection project. Total project funding over FY 2012 – 2015 is $2,438,931.
The project is included in the FY 2012 and FY 2013 budgets using operating funds.
This amendment would bring the total contract value to an amount not to exceed
$9,876,968.
2
TO:
FROM:
DATE:
RE:
CHAIRMAN BULOVA AND THE VRE OPERATIONS BOARD
DALE ZEHNER
DECEMBER 16, 2011
AUTHORIZATION TO AMEND THE CONTRACT WITH SCHEIDT &
BACHMANN FOR FARE COLLECTION EQUIPMENT MAINTENANCE
RESOLUTION
10B-12-2011
OF THE
VIRGINIA RAILWAY EXPRESS
OPERATIONS BOARD
WHEREAS, on June 16, 2000, the VRE Operations Board authorized a contract with
Scheidt & Bachmann for the delivery of a new fare collection system; and,
WHEREAS, on October 31, 2002, the system was accepted and maintenance support
began; and,
WHEREAS, the current maintenance agreement is set to expire on January 31, 2012;
and,
WHEREAS, this proposed extension continues the support of two full-time technicians,
while also adding a software support module which has become necessary due to
increasingly stringent requirements for data security and compliance with the Payment
Card Industry (PCI) standards.
NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board authorizes
the Chief Executive Officer to amend the Scheidt & Bachmann contract for fare
collection system maintenance in order to add three years and five months of
maintenance services in an amount not to exceed $2,438,931, for a total contract value
not to exceed $9,876,968.
3
Fare Collection Equipment Maintenance Agreement Summary
Background
In June of 2000, after a competitive procurement, the VRE Operations Board authorized
a contract with Scheidt & Bachmann (S&B) for the design and delivery of a new fare
collection system.
This system included Ticket Vending Machines (TVMs) at every VRE station as well as
in VRE’s offices and at all vendors – currently 69 TVMs, 13 Ticket Operating Machines
(TOMs), and 8 servers are in service. Since then, as permitted in the original contract,
a series of upgrades to the system have occurred as well as ongoing general
maintenance. Because VRE is a cashless system, the fare collection system must
produce every single ticket that passengers use to board VRE trains. As an order of
magnitude, in October 2011 alone, the fare collection system produced nearly 50,000
tickets and collected over $3 million in fare revenue, approximately $36 million annually.
The addition of a second technician in 2006 was determined necessary based on the
length of service hours (5AM – 7PM) and a significant number of complaints being
received by passengers. Approved expenditures to date are shown below.
Description
Period Covered
Contract Amount
Fare collection system design,
installation, spare part inventory
Post-installation maintenance and
upgrades (48 months, 1 technician)
Post-warranty maintenance (add 2nd
technician)
Post-warranty maintenance and
upgrades (3 months, 2 technicians)
One Year Post-warranty
maintenance and upgrades
One Year Post-warranty
maintenance and upgrades
One Year Post-warranty
maintenance and upgrades
August 18, 2000
$2,952,040
November 1, 2002 to
October 31, 2006
February 18, 2006 to
October 31, 2006
November 1, 2006 to
January 31, 2007
February 1, 2007 to
January 31, 2008
February 1, 2008 to
January 31, 2009
February 1, 2009 to
January 31, 2010
$593,716
TVM/TOM and PCI upgrade
July 2011
$824,130
One Year Post-warranty
maintenance and upgrades
February 1, 2010 to
January 31, 2011
$511,298
One Year Post-warranty
maintenance and upgrades
February 1, 2011 to
January 31, 2012
$511,621
Total
$173,626
$83,639
$558,412
$573,730
$582,446
$7,364,658
1
More than Maintenance
It is important to note that while the description of work is termed “maintenance,” the
scope has and will continue to include mid-life renewal and larger capital maintenance
items – including parts and labor.
For example, in 2007 the card readers and touch screens were replaced on all
equipment. In 2009, all equipment received new ticket printing mechanisms and in
2010 central processing units and PIN pads were replaced. As part of the maintenance
contracts, we have also replaced the system servers and upgraded software to comply
with the new Payment Card Industry (PCI) data security requirements. As the system
ages, there has been a proactive focus on preventative maintenance and life-cycle
renewal. As these needs will continue to grow, incorporating such improvements into
the maintenance contract allows us to control expenses and shift some cost exposure to
S&B.
Contract Extension
Because of the proprietary nature of the fare collection system and warranty
requirements, S&B is the only practical vendor able to perform the ongoing system
maintenance. While a third party could maintain certain components of the system, the
contract requires that S&B maintain all proprietary aspects of the system (i.e., fare
collection software application and some TVM/TOM component maintenance). The
additional cost of third party maintenance for only a portion of the system proved cost
prohibitive.
The contract holds no provisions for a month to month extension. However, a year to
year extension was considered as an option over a multi-year extension. However,
negotiations showed that a savings was being offered by S&B in return for a longer
commitment. As such, the overall cost is significantly higher for an annual contract than
a multi-year contract and is, therefore, not being recommended.
Annual Cost Analysis
VRE costs for maintenance services are summarized in the following table. VRE costs
have increased, on average, by about 2% annually over the past five years. Pricing for
monthly maintenance is tied to the Consumer Price Index (CPI) for annual adjustments.
This resulted in a decrease in monthly costs between 2009 and 2010 and a very small
increase for 2011.
2
Year
Monthly Preventative
Maintenance
Remedial Maintenance,
Software Support, Spare
Parts Inventory
TVM/TOM
Upgrade
Total
20032006
2006
$593,716
$0
$0
$593,716
$207,723
$49,542
$0
$257,265
2007
$384,287
$90,000
$84,125
$558,412
2008
$397,730
$90,000
$86,000
$573,730
2009
$412,446
$105,000
$65,000
$582,446
2010
$411,298
$100,000
$0
$511,298
2011
$411,621
$100,000
$0
$511,621
Cost Analysis of Current System vs. New System
The ultimate goal of the VRE fare collection system is full interoperability with the
WMATA SmarTrip card. As such, the timeframe for implementing a new system has
been coordinated with WMATA’s schedule for the New Electronics Payment Program
(NEPP). VRE staff is actively participating in the NEPP process to make sure that our
system and WMATA’s new system will work together. This contract amendment is
meant to continue the viability of the current system until WMATA is far enough along in
their process that VRE can make the most informed choices regarding our fare
collection future.
When VRE first extended the maintenance contract several years ago, staff
recommended, and the Operations Board concurred, that the development of a new
VRE fare collection system should be deferred until a time when integration into a
regional system was more certain. As such, an investment in maintaining the current
equipment and extending its useful life was determined to be the most responsible
approach.
To change this approach now is not feasible given that a new system will take several
years to design, fabricate, install, test and implement. Knowing that, in December of
2010, the Operations Board authorized a contract award for technical support services
for VRE’s next generation fare collection system. Work underway includes an
assessment of the current system, analysis of VRE requirements for a new system, a
market assessment of new products/technologies, and development of a concept of
operations for the new system. Based on work completed to-date, the cost of a full
system replacement is estimated at between $5 to $7 million; other options being
considered include additional equipment being integrated into the existing system,
which would be slightly less expensive.
3
In summary, the proposed approach is cost effective not only in its ability to allow
interoperability, but also in its volume of production. An investment of roughly $625,000
per year in maintenance costs provides for a system that has an up time of 98% and
provides $34 – $36 million in fare revenue per year – a cost of 1.75-1.85% to benefit.
Current Maintenance Agreement Request
The current Operations Board request is for renewal of the fare collection maintenance
agreement for a three year, five month period. The initial five month term will align the
term with VRE’s fiscal year.
Agreement Scope





Base annual hardware maintenance fee - $530,000
o hardware preventative and corrective maintenance
o two full-time technicians*
o two maintenance vehicles
o consumable supplies
o S&B overhead
Base annual software maintenance (covers general system updates, PCI
upgrades, and patches) - $74,690
Spare parts and inventory restocking - $60,000
Contingency - $221,722
TOTAL - $2,438,941**
*Note – VRE requires on-site technical support from 5 am until 7 pm on each service
day. This has maintained a 98%+ system reliability, and same day resolution of
passenger issues. The skill level of these technicians is high because they are required
to complete maintenance work, system configuration, and programming.
**Note - the agreement includes an annual escalation on the base fee and software
maintenance based on the CPI beginning in July 2012. A 3.5% escalation rate is
assumed.
4
Proposed Fare Collection Maintenance Pricing Sheet for Period February 1, 2012 – June 30, 2015
Period
1
2
3
4
Description
Preventative and
Remedial
Maintenance (as
described in SLA)
Preventative and
Remedial
Maintenance
Software
Maintenance
Total Period 2
Preventative and
Remedial
Maintenance
Software
Maintenance
Total Period 3
Preventative and
Remedial
Maintenance
Software
Maintenance
Total Period 4
Start
End
Duration Base Contract
Amount
2/1/2012 6/30/2012
5 Mos.
$213,175
7/1/2012 6/30/2013
1 Year
$530,000
Estimated
Discretionary
Escalation
Inventory
(3.5%)
$213,175
$0
Estimate by
Period
$213,175
$74,690
7/1/2013 6/30/2014
$604,690
$604,690
1 Year
$625,854
$20,000
$645,854
$647,759
$20,000
$667,759
$670,431
$2,157,219
$20,000
$60,000
$690,431
$2,217,219
$2,217,219
$74,690
7/1/2014 6/30/2015
$604,690
$604,690
1 Year
$74,690
$604,690
$2,027,245
Total Estimated Contract Value
Contingency (10%)
$221,722
Total VRE Operations Board Authorization
$2,438,941
Notes: Period 1 pricing is based on existing maintenance price and is only valid as a onetime package when combined with Periods
2-4.
5
AGENDA ITEM 10-C
ACTION ITEM
TO:
CHAIRMAN BULOVA AND THE VRE OPERATIONS BOARD
FROM:
DALE ZEHNER
DATE:
DECEMBER 16, 2011
SUBJECT: AUTHORIZATION TO EXTEND AMENDED OPERATING/ACCESS
AGREEMENT WITH NORFOLK SOUTHERN
RECOMMENDATION:
The VRE Operations Board is being asked to recommend that the Commissions
authorize the Chief Executive Officer to execute an extension of the existing Amended
Operating/Access Agreement with Norfolk Southern to July 31, 2012.
BACKGROUND:
VRE has an Operating/Access Agreement with Norfolk Southern (NS) relating to VRE
operations in the Manassas to Washington corridor. That agreement, entered into in
1999, has been amended and extended several times, most recently this past June,
with an agreed upon extension to January 31, 2012. A further extension is being
requested at this time to provide sufficient time to complete negotiations of a new
agreement.
Following detailed negotiation sessions with Norfolk Southern representatives, an
agreement in principle was reached on all contract items with the exception of liability
coverage. The Operations Board and Commissions approved these terms at their June
and July 2005 meetings respectively, and authorized execution of a new agreement
that conformed to each of those items.
Progress slowed, however, due to a failure to reach an agreement on the level of
liability coverage. Despite this progress, an extension of the current agreement is
needed while this issue is resolved. Recent informal discussions with Norfolk Southern
indicate that they may be ready to restart negotiations. The major issue in the
negotiation remains the level of liability coverage.
FISCAL IMPACT:
Funding for the Norfolk Southern track access fee has been budgeted in the FY
2012and FY 2013 budgets, including an escalation of 4%.
2
TO:
FROM:
DATE:
RE:
CHAIRMAN BULOVA AND THE VRE OPERATIONS BOARD
DALE ZEHNER
DECEMBER 16, 2011
AUTHORIZATION TO EXTEND AMENDED OPERATING/ACCESS
AGREEMENT WITH NORFOLK SOUTHERN
RESOLUTION
10C-12-2011
OF THE
VIRGINIA RAILWAY EXPRESS
OPERATIONS BOARD
WHEREAS, the Commissions currently have an Operating/Access Agreement with
Norfolk Southern related to VRE operations in the Manassas to Washington corridor,
with said agreement ending on January 31, 2012; and,
WHEREAS, staff has reached an agreement in principle on many substantive items
relating to a new agreement following detailed negotiation sessions with Norfolk
Southern representatives; and,
WHEREAS, a proposal to extend the existing agreement to July 31, 2012, without any
changes to the existing agreement is expected from NS; and,
WHEREAS, the purpose of this extension is to allow time to negotiate and resolve the
outstanding insurance issues relating to a new agreement; and,
WHEREAS, necessary funding has been incorporated into the FY 2012 and FY 2013
budgets to allow VRE to continue its operations over Norfolk Southern tracks via this
contract extension.
NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board
recommends that the Commissions authorize the Chief Executive Officer to execute an
extension of the existing Amended Operating/Access Agreement with Norfolk Southern
to July 31, 2012.
3
AGENDA ITEM 10-D
ACTION ITEM
TO:
CHAIRMAN BULOVA AND THE VRE OPERATIONS BOARD
FROM:
DALE ZEHNER
DATE:
DECEMBER 16, 2011
RE:
AUTHORIZATION TO AMEND THE AIR CONDITIONING SERVICES
CONTRACT
RECOMMENDATION:
The VRE Operations Board is being asked to authorize the Chief Executive Officer to
execute a contract amendment in the amount of $250,000, for the VRE air conditioning
services contract, for a total contract value not to exceed $600,000.
BACKGROUND:
In February of 2009, the VRE Operations Board authorized a contract with RAM
Industrial Services, Inc. of Camp Hill, Pennsylvania for the purpose of providing air
conditioning repair services for VRE passenger cars. The contract was for $350,000
over a three year term and was recommended following the evaluation of four
proposals.
Based on concerns regarding the performance of the air conditioning on VRE’s legacy
fleet, VRE and RAM conducted a complete evaluation of the legacy car fleet air
conditioning systems in February 2011. Structural and system components were
identified as being in need of repair and/or replacement.
As allowed in the contract, VRE has subsequently been scheduling repair services with
RAM based on this evaluation. VRE has 11 more legacy cars in need of air
conditioning repairs prior to the return of the warm weather. This contract amendment
will allow for a continuation of this work during the winter months until the contract with
RAM expires in March 2012.
FISCAL IMPACT:
Funding for this project is included in the capital reserve and is incorporated in the
Amended FY12 Budget.
TO:
FROM:
DATE:
RE:
CHAIRMAN BULOVA AND THE VRE OPERATIONS BOARD
DALE ZEHNER
DECEMBER 16, 2011
AUTHORIZATION TO AMEND THE AIR CONDITIONING SERVICES
CONTRACT
RESOLUTION
10D-12-2011
OF THE
VIRGINIA RAILWAY EXPRESS
OPERATIONS BOARD
WHEREAS, VRE has a need for air conditioning repair services; and,
WHEREAS, VRE has a contract with RAM Industrial Services, Inc. for air conditioning
repair services; and,
WHEREAS, in February 2011, VRE and RAM Industrial Services, Inc. conducted an
evaluation of the legacy car fleet air conditioning systems; and,
WHEREAS, continuation of the repairs identified in the evaluation during the winter
months is necessary to ensure the legacy cars are fully operational prior to the return of
the warmer weather.
NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board authorizes
the Chief Executive Officer to execute a contract amendment in the amount of $250,000
for the air conditioning services contract, for a total contract value not to exceed
$600,000.
AGENDA ITEM 10-E
ACTION ITEM
TO:
CHAIRMAN BULOVA AND THE VRE OPERATIONS BOARD
FROM:
DALE ZEHNER
DATE:
DECEMBER 16, 2011
RE:
AUTHORIZATION TO AWARD A CONTRACT FOR THE PURCHASE OF
WETLAND MITIGATION CREDITS FOR THE PARKING LOT
EXPANSION PROJECT AT THE BROOKE STATION
_____________________________________________________________________
RECOMMENDATION:
The VRE Operations Board is being asked to authorize the Chief Executive Officer to
award a contract to Buena Vista Holdings LLC, of Richmond, Virginia, to purchase
wetland mitigation credits for the parking lot expansion project at the Brooke station.
The total contract value shall be $49,255, plus a 5% contingency of $2,463, for total
amount not to exceed $51,718.
BACKGROUND:
Due to significant increases in ridership, VRE designed a Brooke station parking lot
expansion of approximately two hundred thirty-four (234) parking spaces. The project
will be located to the south of the existing lot and access road.
The Virginia Department of Environmental Quality (DEQ) requires VRE to purchase
wetland credits to mitigate for on-site wetlands that will be disturbed during the
construction process. The Virginia DEQ issued a permit to VRE that outlined the
mitigation requirements. At the November 2011 meeting, the Board authorized the
solicitation of bids for the purchase of wetland mitigation credits.
Following a public procurement, three bids were received on December 8, 2011. The
bids were as follows:
Bidders
Bid Amounts
1. Buena Vista Holdings, LLC
$49,254.03
2. Wetlands Development, LLC
$55,125.00
3. North Fork Wetlands Bank, L.C.
$56,700.00
Following a review of the bids, VRE staff is recommending award to the lowest
responsive and responsible bidder, Buena Vista Holdings LLC for the purchase of
wetland mitigation credits at the Brooke Station Parking Expansion.
FISCAL IMPACT:
Funding for the Brooke parking lot expansion project is included in VRE’s Capital
Improvement Program using CMAQ and RSTP funds. No local match is required.
Total project funding is $2.56M, with $1.1M having been spent to-date on
environmental, design, and property acquisition. An additional $1.4M has been
encumbered for construction related costs, including the construction contract,
inspection, utilities and wetland mitigation.
TO:
FROM:
DATE:
RE:
CHAIRMAN BULOVA AND THE VRE OPERATIONS BOARD
DALE ZEHNER
DECEMBER 16, 2011
AUTHORIZATION TO AWARD A CONTRACT FOR THE PURCHASE OF
WETLAND MITIGATION CREDITS FOR THE PARKING LOT
EXPANSION PROJECT AT THE BROOKE STATION
RESOLUTION
10E-12-2011
OF THE
VIRGINIA RAILWAY EXPRESS
OPERATIONS BOARD
WHEREAS, due to significant increases in ridership, VRE has initiated a parking lot
expansion project at the Brooke VRE station; and,
WHEREAS, at the November 2011 meeting, the Operations Board authorized the
solicitation of bids for the purchase of wetland mitigation credits for the parking lot
expansion project; and,
WHEREAS, on December 8, 2011, three bids were opened and Buena Vista Holdings
LLC was found to be the lowest responsive and responsible bidder.
NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board authorizes
the Chief Executive Officer to award a contract to Buena Vista Holdings LLC to
purchase wetland mitigation credits for the parking lot expansion project at the Brooke
station; and,
BE IT FURTHER RESOLVED THAT, the total contract value shall be $49,255, plus a
5% contingency of $2,463, for total amount not to exceed $51,718; and,
BE IT FURTHER RESOLVED THAT, the VRE Operations Board authorize the Chief
Executive Officer execute permits and other documents related to the purchase of the
wetland mitigation credits.
AGENDA ITEM 10-F
ACTION ITEM
TO:
CHAIRMAN BULOVA AND THE VRE OPERATIONS BOARD
FROM:
DALE ZEHNER
DATE:
DECEMBER 16, 2011
RE:
AUTHORIZATION TO AMEND THE PARKING LEASE AT
RIPPON STATION
RECOMMENDATION:
The VRE Operations Board is being asked to authorize the Chief Executive
Officer to extend the current lease agreement with Kettler for 320 parking spaces
at the Rippon Station. The lease extension would be in the amount of $158,475
for one year.
BACKGROUND:
In May 2002, the Operations Board approved a three year lease with Hazel Land
for 320 parking spaces at the Rippon VRE Station. These additional spaces were
instrumental in reducing the parking shortage at this station where the parking lot
was routinely 97% full. The lot was constructed by Hazel Land and opened in
March of 2004, which also commenced the lease term. The lease agreement
was subsequently assigned by Hazel Land to Kettler and extended for five years
through March 2012; following Operations Board approval in November 2006,
February 2009, February 2010, and January 2011.
In March 2011, a Proffer Statement / Development Plan submitted by Kettler was
approved by Prince William County, which includes the construction of a parking
garage by Kettler on the County owned property where current parking lot is
located. The Plan further stipulates that until such time that the parking garage is
constructed and available for use, Kettler shall continue to allow VRE to lease the
surface parking at an annual increase in rent of two percent (2%) per year.
VRE staff is requesting permission to extend the lease for one year, at a cost not
to exceed $158,475 during that period. The average cost of $41.27 per space,
per month is comparable to the current market value VRE is paying elsewhere.
FISCAL IMPACT:
Funding for this project is included in the FY 2012 and FY 2013 operating
budgets.
TO:
FROM:
DATE:
RE:
CHAIRMAN BULOVA AND THE VRE OPERATIONS BOARD
DALE ZEHNER
DECEMBER 16, 2011
AUTHORIZATION TO AMEND THE PARKING LEASE AT
RIPPON STATION
RESOLUTION
10F-12-2011
OF THE
VIRGINIA RAILWAY EXPRESS
OPERATIONS BOARD
WHEREAS, in May 2002, the Operations Board approved a three year lease with
Hazel Land for 320 parking spaces at the Rippon VRE Station; and,
WHEREAS, these additional spaces were instrumental in reducing the parking
shortage at Rippon where the parking lot was routinely 97% full; and,
WHEREAS, the lease has been renewed several times since that time, with the
current extension set to expire in March 2012; and,
WHEREAS, VRE staff is requesting permission to extend the lease for one
additional year.
NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board
authorizes the Chief Executive Officer to extend the current lease agreement with
Kettler for 320 parking spaces at the Rippon Station. The lease extension would
be in the amount of $158,475 for one year.