AGENDA ITEM 11-A
ACTION ITEM
TO:
CHAIRMAN BULOVA AND THE VRE OPERATIONS BOARD
FROM:
DALE ZEHNER
DATE:
JANUARY 21, 2011
RE:
AUTHORIZATION TO AWARD CONTRACT OPTIONS FOR PURCHASE
AND DELIVERY OF LOCOMOTIVE FUEL TO VRE YARDS
RECOMMENDATION:
The VRE Operations Board is being asked to authorize the Chief Executive Officer to
exercise the second option year with Quarles Petroleum, Inc. of Fredericksburg, Virginia
for fuel at the Crossroads Yard and Griffith Energy Services, Inc. of Manassas, Virginia
for fuel at the Broad Run Yard. The contract option with Quarles Petroleum, Inc. is
being recommended in an amount not to exceed $2,650,000 for the period of one year.
The contract option with Griffith Energy Services, Inc. is being recommended in an
amount not to exceed $2,150,000 for the period of one year.
BACKGROUND:
On February 20, 2009, the Operations Board approved contracts for the delivery of
locomotive fuel at both VRE yards. Those contracts were for a base year plus four one
year options, with Operations Board approval required for each option year. The first
option year of these contracts expires on June 30, 2011.
Both contracts allow VRE to lock in future fixed prices for fuel. VRE continues to work
with a consultant hired to assist in this process. VRE has been able to reduce cost
volatility through the use of this fixed price mechanism as the fixed price is based on
futures purchased by our suppliers. Exercising the option years before expiration allows
VRE to maximize the use of this mechanism.
FISCAL IMPACT:
Funding for these option years is provided for in the FY 2012 operating budget.
TO:
FROM:
DATE:
RE:
CHAIRMAN BULOVA AND THE VRE OPERATIONS BOARD
DALE ZEHNER
JANUARY 21, 2011
AUTHORIZATION TO AWARD CONTRACT OPTIONS FOR PURCHASE
AND DELIVERY OF LOCOMOTIVE FUEL TO VRE YARDS
RESOLUTION
11A-01-2011
OF THE
VIRGINIA RAILWAY EXPRESS
OPERATIONS BOARD
WHEREAS, VRE consumes approximately 1,800,000 gallons of diesel fuel annually;
and,
WHEREAS, the current first option year contracts to provide fuel at VRE yards expire
June 30, 2011.
NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board authorizes
the Chief Executive Officer to execute the second option year extension for the
purchase and delivery of locomotive fuel at the Crossroads yard to Quarles Petroleum,
Inc. in an amount not to exceed $2,650,000.
BE IT FURTHER RESOLVED THAT, the Operations Board authorizes the Chief
Executive Officer to execute the second option year extension for the purchase and
delivery of locomotive fuel at the Broad Run yard to Griffith Energy Services, Inc. in an
amount not to exceed $2,150,000.
AGENDA ITEM 11-B
CONSENT AGENDA ITEM
TO:
CHAIRMAN BULOVA AND THE VRE OPERATIONS BOARD
FROM:
DALE ZEHNER
DATE:
JANUARY 21, 2011
RE:
AUTHORIZATION FOR CONSTRUCTION SUPPORT SERVICES
_____________________________________________________________________
RECOMMENDATION:
The VRE Operations Board is being asked to authorize the Chief Executive Officer to
execute a personal service contract(s) for an independent contractor(s) in an amount
not to exceed $300,000 for construction support services.
BACKGROUND:
In November 2007, the Operations Board authorized award of a personal service
contract(s) for independent contractor(s) to perform construction support services in an
amount(s) of up to $300,000. Since that time, contracts were executed with
independent contractors to perform on-site construction inspection services on various
projects including Woodbridge Station Expansion, Quantico Bridge, Manassas Parking
Garage, and Crossroads and Broad Run Maintenance Facilities.
VRE has utilized this approach to supplement VRE staff resources and because it has
proven to be extremely cost effective, yielding substantial cost savings over the
issuance of task order work to general engineering consultants. This approach also
allows flexibility for independent contractors to work only when needed/assigned. The
contract employee(s) report directly to VRE project managers and provide valuable day
to day work status, on-site coordination and quality control during construction.
Based on the current and anticipated program of projects, the previously authorized
expenditure limit will be exhausted in the next few months. In consideration of planned
projects including the Broad Run Warehouse, Crossroads Train Wash, Broad Run
Platform Extension and the ongoing Fredericksburg Station Renovation project, VRE
staff is recommending a budget of $300,000 be authorized to cover the issuance of a
new construction support service contract(s). It is expected that the $300,000 will
sustain the planned work for a three-year period.
FISCAL IMPACT:
Contracts will be funded through the CIP project budgets in for each project.
Construction support services have been included in each project budget line item.
TO:
FROM:
DATE:
RE:
CHAIRMAN BULAVA AND THE VRE OPERATIONS BOARD
DALE ZEHNER
JANUARY 21, 2011
AUTHORIZATION FOR CONSTRUCTION SUPPORT SERVICES
RESOLUTION
11B-01-2011
OF THE
VIRGINIA RAILWAY EXPRESS
OPERATIONS BOARD
WHEREAS, at the November 17, 2007 Operations Board meeting, the Operations
Board authorized award of personal service contract(s) for independent contractor(s) to
perform construction support services in the amount of up to $300,000 ; and,
WHEREAS, contracts were executed with individuals to perform construction inspection
and management services on various projects; and,
WHEREAS, previous Board authorizations will be exhausted in the next few months;
and,
WHEREAS, in consideration of ongoing and planned projects VRE staff recommends
additional authority for continued construction support services.
NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board authorizes
the Chief Executive Officer to execute a personal service contract(s) for an independent
contractor(s) in an amount not to exceed $300,000 for construction support services.
AGENDA ITEM 11-C
ACTION ITEM
TO:
CHAIRMAN BULOVA AND THE VRE OPERATIONS BOARD
FROM:
DALE ZEHNER
DATE:
JANUARY 21, 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 $155,370
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 the 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 four years through March 2011 with the approval of the Operations Board in
November 2006, February 2009 and February 2010.
Kettler has entered into a proffer agreement with Prince William County that
includes nearly 300 parking spaces for VRE use when the residential/commercial
development is complete. In the interim, both VRE and Kettler wish to maintain
the surface parking lot lease which is currently set to expire in March 2011.
VRE staff is requesting permission to extend the lease for one year, at a cost not
to exceed $155,370 during that period. The average cost of $40.46 per space,
per month is comparable to the current market value VRE is paying elsewhere.
FISCAL IMPACT:
Funds for the project are included in VRE’s Capital Improvement Program as part
of the Rippon lease project.
TO:
FROM:
DATE:
RE:
CHAIRMAN BULOVA AND THE VRE OPERATIONS BOARD
DALE ZEHNER
JANUARY 21, 2011
AUTHORIZATION TO AMEND THE PARKING LEASE AT
RIPPON STATION
RESOLUTION
11C-01-2011
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 with the current
extension set to expire in March 2011; 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 $155,370 for one year.
AGENDA ITEM 11-D
ACTION ITEM
TO:
CHAIRMAN BULOVA AND THE VRE OPERATIONS BOARD
FROM:
DALE ZEHNER
DATE:
JANUARY 21, 2011
RE:
AUTHORIZATION TO EXECUTE A PARKING LOT LEASE AT
THE FREDERICKSBURG VRE STATION
RECOMMENDATION:
The VRE Operations Board is being asked to authorize the Chief Executive
Officer to enter into a lease agreement with Jack and Mona Albertine for 40
parking spaces located at 406-408 Lafayette Boulevard in Fredericksburg (Lot E)
in an amount not to exceed $76,800 over a period of three years.
BACKGROUND:
Parking at the end of the line station in Fredericksburg has historically
experienced some of the greatest demand within the VRE system. While there
are currently over 600 parking spaces which serve this station, the parking
utilization is consistently over 100%. At present, VRE leases several parking lots
adjacent to the station that make up much of the parking available to riders
originating from Fredericksburg.
In January 2006, VRE negotiated an agreement with Jack and Mona Albertine for
the lease of 40 parking spaces. VRE staff has subsequently negotiated a similar
lease that would include the same terms and conditions related to maintenance
and use of the leased premises as is provided under the existing agreement,
which will expire on February 7, 2011. The proposed three year lease would
begin on February 8, 2011, at a cost per space of $51.25 a month and escalate
over the term of the lease to a maximum cost per space of $55.43 per month.
FISCAL IMPACT:
Funding for this lease is available in the FY 2011 Operating budget.
TO:
FROM:
DATE:
RE:
CHAIRMAN BULOVA AND THE VRE OPERATIONS BOARD
DALE ZEHNER
JANUARY 21, 2011
AUTHORIZATION TO EXECUTE A PARKING LOT LEASE AT
THE FREDERICKSBURG VRE STATION
RESOLUTION
11D-01-2011
OF THE
VIRGINIA RAILWAY EXPRESS
OPERATIONS BOARD
WHEREAS, parking utilization at the Fredericksburg VRE Station is currently
over 100%; and,
WHEREAS, the parking lot owned by Jack and Mona Albertine presently serves
riders originating from Fredericksburg; and,
WHEREAS, the existing five year lease agreement is set to expire in February
2011; and,
WHEREAS, VRE staff is requesting permission to execute a new three year
lease to commence upon expiration of the existing agreement.
NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board
authorizes the Chief Executive Officer to enter into a lease agreement with Jack
and Mona Albertine for an amount not to exceed $76,800 over a three year
period.
AGENDA ITEM 11-E
ACTION ITEM
TO:
CHAIRMAN BULOVA AND THE VRE OPERATIONS BOARD
FROM:
DALE ZEHNER
DATE:
JANUARY 21, 2011
RE:
AUTHORIZATION TO CONDUCT PUBLIC HEARINGS RELATED
TO CHANGES TO THE VRE TARIFF
RECOMMENDATION:
The VRE Operations Board is being asked to authorize the Chief Executive
Officer to solicit comment through public hearings related to several proposed
changes to the tariff, including reducing the Step-Up fare to $5, discontinuing
group fares, and making changes to the VRE bicycle policy.
BACKGROUND:
VRE ridership has continued to grow at a steady rate. In 2010, ridership records
were set only to be broken again several months, or even several weeks later.
Four of the top ten ridership days have occurred in January 2011, including the
number one ridership day, which occurred on January 6, 2011. Many trains are
at or have exceeded capacity. In some cases, there can be as many as 200
standees on a particular train. As a result of this growth, VRE staff is constantly
looking for ways to increase capacity.
At the December 2010 Operations Board meeting, the Board was briefed on a
few of the ways to increase the physical capacity of VRE trains. However, they
are mid-term strategies that may take several months to implement. In addition
to those options, VRE staff has looked at other short term options that might
allow more seats to become available.
Step Up Tickets
When the program was started in 1994, VRE riders with multi-ride tickets (10Ride, Monthly or TLC pass) could use select Amtrak trains at no extra cost.
Amtrak, in turn, charged VRE $10 for every VRE rider on one of their trains.
Over the course of the years and as VRE’s budgets tightened, VRE looked for
ways to reduce operating costs, including asking riders to pay part of the fee that
VRE was required to pay Amtrak. Currently, VRE riders possessing a valid VRE
multi-ride ticket plus a $10 Step-Up ticket are able to ride select Amtrak trains as
part of their commute. As the price paid by the rider for a Step-Up ticket has
increased, many riders have switched back to using VRE trains. While overall
VRE ridership has increased 11.2% between FY2008 and 2010, VRE ridership
on Amtrak has increased by only 6.6% over the same timeframe.
With ridership outpacing our ability to provide seats, VRE staff is looking at the
possibility of shifting some of our riders back over to the Amtrak trains as a way
to open up capacity on VRE trains. If the Step-Up fare is dropped to a $5 cost to
the rider, it is anticipated that more VRE riders will switch to the Amtrak trains,
opening up seats for standees on some of the VRE trains. It is estimated that
ridership on Amtrak trains will increase to about 60,000 riders per year and the
annual cost to VRE would be about $300,000.
A summary of Step-Up ticket prices, cost to VRE and associated ridership is
provided below.
Fiscal Year
FY 2005
FY 2006
FY 2008
FY 2010
FY2012
Annual Number of
VRE Riders on
Amtrak Trains
98,805
75,028
24,859
26,503
60,000 (est.)
Cost to VRE Rider
per Trip
Annual Cost to
VRE
Free
$2.00
$10.00
$10.00
$5.00 (proposed)
$988,050
$600,224
None
None
$300,000 (est.)
Group Fares
VRE currently offers a discount of 50% off the single ride fare to groups with 10
or more fare-paying passengers. Over the years, VRE staff has tried to limit the
group trips to those trains with enough capacity to accommodate the extra riders.
With many of our trains operating over capacity, we have received negative
comments from our long-term riders about the fact that groups are able to pay
half off the ticket price, while a passenger paying a full fare that boards further
down the line may have to stand. As a result, VRE is seeking to eliminate the
group fare program. However, VRE staff would still work with groups interested
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in riding VRE to direct them towards the less crowded trains. VRE does not
believe that there will be a fiscal impact with this change as many groups that
currently use VRE may look at other options. Those that do choose to use VRE
would pay the full fare.
Bicycle Policy
Over the years, VRE has adjusted its bicycle policy several times based on
space availability on board the trains. Prior to the arrival of the new Gallery cars,
VRE only permitted collapsible bicycles on board the trains. Once the new
Gallery cars were in operation, the policy was changed to permit bicyclists to
bring full size bicycles on the last three trains on both lines in the mornings and
the evenings. With ridership increasing and the number of standees growing,
there is little room for bicyclists to safely store their bicycles and still provide
seating for all riders. As a result, staff is looking at limiting bicycles once again to
collapsible bicycles only.
Because these are fare and service related changes, VRE staff feels that the
best course of action is to provide our riders with a chance to comment on the
proposed changes. Public hearings will be held in Alexandria, Woodbridge,
Fredericksburg, Manassas, Burke Centre and Washington, D.C. In addition, the
public can comment via email, fax or U.S. Mail. VRE staff will report back to the
Operations Board with a summary of comments and recommendation for action
on these proposals in March.
FISCAL IMPACT:
VRE staff estimates that the proposed change in the Step-Up fare would cost
$300,000 which is available in the operating budget. There is no fiscal impact
expected for the change to group fares or the bicycle policy.
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TO:
FROM:
DATE:
RE:
CHAIRMAN BULOVA AND THE VRE OPERATIONS BOARD
DALE ZEHNER
JANUARY 21, 2011
AUTHORIZATION TO CONDUCT PUBLIC HEARINGS RELATED
TO A PROPOSED SERVICE AMENDMENT
RESOLUTION
11E-01-2011
OF THE
VIRGINIA RAILWAY EXPRESS
OPERATIONS BOARD
WHEREAS, ridership has been growing at a rate that outpaces the ability to add
seating capacity; and,
WHEREAS, expanding the physical capacity would take a minimum of several
months to years to implement; and,
WHEREAS, VRE staff has identified several other programs to address the
increased ridership and crowded conditions; and,
WHEREAS, these changes to the fare structure and service require public
hearings.
NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board
authorizes the Chief Executive Officer to solicit comment through public hearings
related to a proposed change to the Step-Up fare and eliminating group fares
and limiting the bicycle policy.
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