M I N U T E S
VRE Operations Board Meeting
PRTC Headquarters – Prince William County, Virginia
December 19, 2014
Virginia Railway
Express
Board Members
Paul Milde
Chairman
John Cook
Vice-Chairman
Gary Skinner
Secretary
Paul Smedberg
Treasurer
Sharon Bulova
Maureen Caddigan
John Jenkins
Matt Kelly
Jennifer Mitchell
Suhas Naddoni
Martin Nohe
J. Walter Tejada
Bob Thomas
Jonathan Way
Alternates
Marc Aveni
Meg Bohmke
Jay Fisette
Frank Jones
Tim Lovain
Michael May
Jeff McKay
Kevin Page
Paul Trampe
Billy Withers
Doug Allen
Chief Executive Officer
1500 King Street, Suite 202
Alexandria, VA 22314-2730
Members Present
Sharon Bulova (NVTC)
Maureen Caddigan (PRTC)
John Cook (NVTC)
John D. Jenkins (PRTC)
Matt Kelly (PRTC)
Paul Milde (PRTC)
Jennifer Mitchell
Martin Nohe (PRTC)*
Gary Skinner (PRTC)
Paul Smedberg (NVTC)
J. Walter Tejada (NVTC)*
Jonathan Way (PRTC)
Jurisdiction
Fairfax County
Prince William County
Fairfax County
Prince William County
City of Fredericksburg
Stafford County
DRPT
Prince William County
Spotsylvania County
City of Alexandria
Arlington County
City of Manassas
Members Absent
Suhas Naddoni (PRTC)
Bob Thomas (PRTC)
Jurisdiction
City of Manassas Park
Stafford County
Alternates Present
Jurisdiction
Alternates Absent
Marc Aveni (PRTC)
Meg Bohmke (PRTC)
Jay Fisette (NVTC)
Frank C. Jones (PRTC)
Tim Lovain (NVTC)
Michael C. May (PRTC)
Jeff McKay (NVTC)
Kevin Page
Paul Trampe (PRTC)
Billy Withers
Jurisdiction
City of Manassas
Stafford County
Arlington County
City of Manassas Park
City of Alexandria
Prince William County
Fairfax County
DRPT
Spotsylvania County
City of Fredericksburg
Staff and General Public
Doug Allen – VRE
Ann King – VRE
Anthony Ayala – VRE
Mike Lake – Fairfax County DOT
Gregg Baxter – Keolis
Lezlie Lamb – VRE
Donna Boxer – VRE
Bob Leibbrandt – Prince William County
Tom Clark – Parsons Transportation
Nate Macek – Parsons Brinckerhoff
John Coan – Piper Jaffray
Steve MacIsaac – VRE legal counsel
Nancy Collins – Stafford County
Betsy Massie – PRTC Staff
James Davenport – Prince William County Kate Mattice – NVTC Staff
Patrick Durany - Prince William County
Aimee Perron Siebert – The Hillbridge Group
Rhonda Gilchrest – NVTC staff
Lynn Rivers – Arlington County
Al Harf – PRTC staff
Scott Schenk – Free Lance- Star
Chris Henry – VRE
Brett Shorter – VRE
Tom Hickey – VRE
Dave Snyder – Citizen
Gerri Hill – VRE
Sonali Soneji – VRE
Christine Hoeffner – VRE
Alex Sugatan – VRE
Bryan Jungwirth – VRE
Joe Swartz – VRE
* Delineates arrival following the commencement of the Board meeting. Notation of exact arrival
time is included in the body of the minutes.
Chairman Milde called the meeting to order at 9:35 A.M. Following the Pledge of Allegiance,
Roll Call was taken.
Approval of the Agenda – 3
Mr. Cook moved, with a second by Ms. Bulova, to approve the Agenda. The vote in favor was
cast by Board Members Bulova, Caddigan, Cook, Jenkins, Kelly, Milde, Mitchell, Skinner,
Smedberg and Way.
Approval of the Minutes of the November 21, 2014 Operations Board Meeting – 4
Mr. Skinner moved approval of the minutes and Ms. Bulova seconded. The vote in favor
was cast by Board Members Bulova, Caddigan, Cook, Jenkins, Kelly, Milde, Mitchell, Skinner,
Smedberg and Way.
Chairman’s Comments – 5
Chairman Milde announced the Joint Audit Committee will meet following this meeting.
He then reviewed the accomplishments of VRE throughout the past year. He highlighted
several major events, including VRE’s Legislative Reception in Richmond, which Governor
McAuliffe attended; Secretary Layne attended the January 2014 VRE Operations Board
Meeting; VRE adopted its System Plan; FTA conducted a Triennial Review of VRE; VRE
partnered with the District DOT to successfully secure a TIGER Grant for the Long Bridge
project; held two new station groundbreakings (Potomac Shores and Spotsylvania);
Congressman Wittman attended the October 2014 Operations Board meeting; successfully
amended the VRE Master Agreement to include the weighted vote requirement); VRE ran
Firecracker Trains for 4th of July; made substantial progress on Mobile Ticketing; took
delivery of eight new railcars and ordered five more; said goodbye to long standing Board
Member Wally Covington; and welcomed Jennifer Mitchell, Walter Tejada and Martin Nohe
as new Operations Board Members.
Chairman Milde introduced Kate Mattice, NVTC’s Director of Policy and Programs, who is
sitting in for Kelley Coyner.
Chief Executive Officer’s Comments –6
Mr. Allen reported on-time performance (OTP) for the month of November was at 90
percent. VRE ran its 18th Annual Operation Lifesaver Santa Trains on December 13th in
conjunction with the Marine Corps Toys for Tots campaign. VRE collected almost $20,000
in cash donations and truckloads of toys.
Mr. Allen recognized Ann King, VRE’s Marketing Administrator, who is retiring at the end of
the year. Ms. King joined VRE in 1994 and has helped grow VRE into the system it is today.
Mr. Allen presented Ms. King with a framed photograph of a VRE train. Ms. Bulova thanked
Ms. King for her years of service at VRE and her help in creating the culture VRE is known
for with its excellent customer service and making riders feel part of the VRE family.
Mr. Jenkins stated VRE’s efforts in outreach to the community have been outstanding,
especially with the Toys for Tots program. Mr. Allen agreed VRE was very fortunate to
have Marines from Quantico participate in the Toys for Tots event.
[Mr. Tejada arrived at 9:41 A.M.]
VRE Riders’ and Public Comment – 7
There were no comments.
Consent Agenda – 8
On a motion by Mr. Jenkins and a second by Mr. Cook, the Board unanimously approved the
following Consent Agenda items:
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Resolution #8A-12-2014: Authorization to Issue a Request for Proposals for
Exterior Cleaning of VRE Locomotives and Railcars
Resolution #8B-12-2014: Authorization to Issue a Request for Proposals for
Disaster Management Services
Resolution #8C-12-2014: Authorization to Issue a Request for Proposals for
Architecture/Engineering Services for Facility Design Guidelines and Standard
Specifications
Resolution #8D-12-2014: Authorization to Issue an Invitation for Bids for L’Enfant
Wayside Power Construction
Resolution #8E-12-2014: Authorization to Award a GEC VI Task Order for FTA Core
Capacity Grant Support
Resolution #8F-12-2014: Authorization to Participate in a Joint Request for
Proposals for Auditing Services
Resolution #8G-12-2014: Authorization to Execute Contract Options for Purchase
and Delivery of Locomotive Fuel to VRE Yards
The vote in favor was cast by Board Members Bulova, Caddigan, Cook, Jenkins, Kelly, Milde,
Mitchell, Skinner, Smedberg, Tejada and Way.
Approval of 2015 VRE Officers – 9A
Chairman Milde stated last month he appointed Ms. Bulova and Mr. Jenkins to serve as the
Nominating Committee. Ms. Bulova reported that the Nominating Committee recommends
the following slate of officers for 2015:
Chairman:
Vice-Chairman:
Secretary:
Treasurer:
John Cook
Gary Skinner
Paul Smedberg
Maureen Caddigan
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Ms. Bulova explained that according to the VRE By-Laws, each of the Commissions shall
provide two officers from among its Operations Board Members and the office of Chairman
is rotated each year between the two Commissions. There were no additional nominations
from the floor.
Ms. Bulova moved, with a second by Mr. Jenkins, to approve the slate of officers. The vote
in favor was cast by Board Members Bulova, Caddigan, Cook, Jenkins, Kelly, Milde, Mitchell,
Smedberg, Tejada and Way. Mr. Skinner abstained.
Authorization to Execute a Lease Agreement for Parking at the Fredericksburg Station Lot
E – 9B
Mr. Allen stated Resolution #9B-12-2014 would authorize him to execute a lease
agreement with Jack and Mona Albertine for 40 parking spaces near the Fredericksburg
Station at 406-408 Lafayette Boulevard in the amount of $57,709 for a two-year term
commencing on February 8, 2015.
Mr. Allen stated Lot E represents the second largest leased lot available to riders. This
lease agreement would be effective immediately upon the expiration of the existing
contract with the Albertine's. The rental rate of $59.23 per space per month will escalate at
a rate of three percent at the end of the first year of the agreement.
Mr. Kelly moved, with a second by Ms. Caddigan, to approve the resolution. The vote in
favor was cast by Board Members Bulova, Caddigan, Cook, Jenkins, Kelly, Milde, Mitchell,
Skinner, Smedberg, Tejada and Way.
[Mr. Nohe arrived at 9:51 A.M.]
Authorization to Extend a Lease Agreement for Parking at the Rippon Station – 9C
Mr. Allen reported Resolution #9C-12-2014 would authorize him to extend a lease
agreement with KP Big Crest Lane, LLC for 320 parking spaces at the Rippon Station in the
amount of $168,173 for one year.
Ms. Caddigan moved, with a second by Mr. Kelly, to approve Resolution #9C-12-2014. The
vote in favor was cast by Board Members Bulova, Caddigan, Cook, Jenkins, Kelly, Milde,
Mitchell, Nohe, Skinner, Smedberg, Tejada and Way.
Authorization to Execute a Lease Agreement for Office Space – 9D
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Mr. Allen stated the VRE Operations Board is asked to authorize him to execute a lease for
office space and parking at 127 South Peyton Street with Independent Insurance Agents
and Brokers of America for 3,302 rentable square feet at an initial annual rate of $94,405
and a not-to-exceed amount of $291,796 for the initial 30-month term including a three
percent annual escalation. Two one-year options for renewal are included in the least that
would be brought to the Operations Board for action at a later date. Resolution #9D-122014 would accomplish this.
Mr. Allen reviewed the reasons for the additional office space. In response to a question
from Ms. Bulova, he explained there is no available space for sale or lease in VRE’s current
building. This new site is next door to VRE’s headquarters at 1500 King Street. This plan
will allow for expansion of the current Communication Room to accommodate customer
service and security activities, as well as provide space for new employees. Chairman
Milde stated that the Executive Committee has reviewed this.
Ms. Bulova moved, with a second by Mr. Smedberg, to approve the resolution. The vote in
favor was cast by Board Members Bulova, Caddigan, Cook, Jenkins, Kelly, Milde, Mitchell,
Nohe, Skinner, Smedberg, Tejada and Way.
Adoption of Proposed VRE Title VI Major Service Change and Fare/Service Equity Policy
and Authorization to Seek Public Review and Comment – 9E
Mr. Allen stated Resolution #9E-12-2014 would provisionally adopt the proposed VRE
Title VI Major Service Change and Fare/Service Equity Policy and authorize him to seek
public comment. The purpose of this policy is to determine whether potential fare and
major service changes will have a disparate impact based on race, color, or national origin;
or disproportionate burden on low-income populations.
Mr. Allen explained this policy will be incorporated into the PRTC Title VI Program. PRTC
is required to submit its Title VI Program to the Federal Transit Administration (FTA)
every three years with the next submittal due by March 31, 2015. This requirement
became effective October 1, 2012, after PRTC’s last submittal, so this is the first time PRTC
and VRE have been required to have these policies in place.
Mr. Allen stated staff is recommending the Operations Board provisionally adopt the
policies and following a public review process if reconsideration is needed, staff will return
to the Operations Board with a modified policy at a future Operations Board meeting.
In response to a question from Mr. Tejada, Mr. Allen explained WMATA follows the same
requirements and processes just on a larger scale than VRE regarding fare increases. Mr.
Way inquired about protection of low income populations being covered by Title VI. Mr.
Swartz stated an executive order requires they be treated as a protected group for some of
the Title VI requirements.
Mr. Kelly moved, with a second by Ms. Caddigan, to approve Resolution #9E-12-2014. The
vote in favor was cast by Board Members Bulova, Caddigan, Cook, Jenkins, Kelly, Milde,
Mitchell, Nohe, Skinner, Smedberg, Tejada and Way.
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Adoption of the VRE Operations Board Member Recognition Program – 9F
Mr. Allen stated Chairman Milde approached staff about establishing a VRE Operations
Board Member Recognition Program to recognize and honor Members of the Operations
Board who played key roles in establishing the VRE service and whose extraordinary
efforts contributed to its success. VRE will honor these Members by placing their names on
VRE’s locomotives. Mr. Allen showed an example of the metal plaque that was prepared for
Elaine McConnell, who was previously honored.
Chairman Milde stated he created an ad hoc committee to review names and nominate a
list of former and current Operations Board Members to receive recognition under the new
program:
Edwin King – Prince William County (Original Member)
James Hughes Payne Sr. – City of Manassas (First Elected City of Manassas Member)
Bernard Cohen – VA House of Delegates (Original Member)
Robert Gibbons – Stafford County (First Elected Stafford Member)
Sally H. Cooper – VDOT (Original Member)
Sharon Bulova – Fairfax County (Original and Continuously Serving Member)
John Jenkins – Prince William County (Long Serving Member)
Hilda Barg – Prince William County (Long Serving Member)
Elaine McConnell – Fairfax County (Long Serving Member – previously recognized)
Ms. Caddigan moved, with a second by Mr. Skinner, to approve Resolution #9F-12-2014,
which adopts the VRE Operations Board Member Recognition Program and approves the
nominations. The vote in favor was cast by Board Members Bulova, Caddigan, Cook,
Jenkins, Kelly, Milde, Mitchell, Nohe, Skinner, Smedberg, Tejada and Way.
Referral of the Amended FY 2015 and Recommended FY 2016 VRE Operating and Capital
Budgets to the Commissions and Localities –9G
Mr. Allen stated the VRE Operations Board is asked to adopt the Amended FY 2015 VRE
Operating and Capital Budget and the recommended FY 2016 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. Resolution #9G-12-2014 would
accomplish this.
Mr. Allen explained, based on past discussions by the Operations Board, there are two
budget options for the Board to consider. Option A includes a four percent fare increase
and no subsidy increase. Option B includes a three percent fare increase and a two percent
subsidy increase.
Mr. Shorter gave a presentation on the budget. He reviewed the budget assumptions. He
reported that the CAO Task Force met last week and has six recommendations:
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1) Support maintaining the total jurisdictional subsidy at $16.4 million (Option A).
2) Support a four percent fare increase beginning July 1, 2015 (FY 2016).
3) Support the addition of six positions (of which three in equipment operations
are cost neutral replacing contract positions).
4) The current System Plan 2040 is unconstrained. VRE needs to develop a
constrained System Plan that balances what the jurisdictions can commit to fund
with the fare increases the riders are willing to bear.
5) The appropriate amount of a local capital contribution by the jurisdictions is
unknown. VRE needs to better define the operating and capital costs of the
System Plan before asking the jurisdictions to commit funding over the six year
plan.
6) Facility and programmatic costs of capital projects need to be included in six
year plan projections. Absence of these costs understates six year plan estimates
of expenses and subsidy.
Mr. Smedberg asked for the definition of “constrained.” Mr. Shorter explained it is basically
“programmed” funds. VRE’s constrained plan contains programmed funds. The multi-year
CIP includes both programmed and un-programmed projects. The programmed projects
include those that are funded through federal formula grants received annually by VRE
through already allocated funds from other programs, such as CMAQ , NVTA or through
other expected sources. The un-programmed projects are those that are pending a
discretionary allocation by a funding authority or for which funding sources have not been
identified.
Mr. Cook asked if the CAO Task Force’s recommendations are more focused on
maintenance and current operations or did they take into account the System Plan for
expansion and discuss the funding needed to do that. Mr. Shorter stated the CAO Task
Force looked at the FY 2016 Budget and the six year plan, and did not take into
consideration the System Plan.
Mr. Smedberg asked about assumptions regarding the HOT Lanes as it relates to the
operating side of the budget. Ms. Hoeffner replied because the HOT Lanes are just opening,
VRE has not come to any specific conclusions or assumptions on how they could impact
VRE ridership. The general thought is that they will not have a significant impact. Mr.
Smedberg asked about the pricing for the HOT Lanes. Mr. Harf stated there is no cap on
pricing and it could get up as high as 80-cents per mile during peak periods. Ms. Hoeffner
stated lower gas prices and reduced transit benefits also impact ridership so it can be
difficult to isolate the factors impacting ridership.
Mr. Smedberg asked where VRE is with NVTA funding. Mr. Shorter stated for the CIP
portion of the budget any NVTA funding approved in FY 2014 is considered funded. Any
requests for FY 2015 and beyond are listed as un-programmed funds. Staff will return at
next month’s Operations Board meeting with information on federal funding for approval
to apply for state matching funds. Mr. Nohe asked if any of the funded CIP projects
translate into increased operating expenses. Mr. Shorter responded that any increases
specifically for FY 2016 are in the budget.
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Mr. Kelly asked if VRE has looked at lower gas prices as it impacts gas tax revenue. Mr. Harf
stated the dramatic drop in fuel prices over the past six months coupled with
projections of prices that show them being depressed for some time to come have
caused fuel tax yields over the six year projection period to drop dramatically. He
cited Prince William’s situation as a case in point – the County’s projected fuel tax
yield for FY 2015 thru FY 2020 dropped by $16 million comparing last year’s and this
year’s projections.
In response to a question from Mr. Tejada, Mr. Shorter stated VRE does look at teleworking
as part of the calculation of ridership. Ms. Hoeffner stated VRE riders may be teleworking
several days a week, which impacts the type of ticket they are purchasing. Mr. Shorter
stated the biggest impact was the decrease in the transit benefit.
Ms. Bulova observed the major difference between PRTC and NVTC is how their gas tax
revenues can be spent. Gas tax revenues for NVTC Jurisdictions go to WMATA to help fund
the Metro system. NVTC jurisdictions pay for VRE out of their general funds. PRTC
jurisdictions use gas tax revenues for VRE as well as other road projects. She observed the
loss of gas tax revenue for PRTC jurisdictions is compounded if there is an increase in
subsidy.
Mr. Cook stated the budget projects a five percent subsidy increase next year. If the Board
is thinking multi-year budgets, it should think about fare and subsidy increased each year
but at a lower percentage. If VRE is going to build the system, the Board needs to think of
how to pay for it. Chairman Milde stated that he would be willing to ask his jurisdiction to
approve a two percent subsidy increase.
Mr. Nohe moved to adopt Option A of the budget which includes a four percent fare
increase with no subsidy increase. Ms. Caddigan seconded.
Ms. Bulova stated that she will support the motion. She is sensitive to the smaller
jurisdictions being impacted by a subsidy increase, which would be compounded by lower
gas tax revenues. She asked staff to continue to look for ways to economize and find
savings to reduce the fare increase percentage if possible.
Chairman Milde asked Mr. Way to give a report from the Capital Committee. Mr. Way
stated the Capital Committee concluded that the estimates of funding sources and
allocation strategies contained in the budget are reasonable and functional and should be
adopted by the Operations Board and referred to PRTC and NVTC. Secondly, the budget
conforms to the financial and debt management principals previously developed by the
Capital Committee and previously approved by the Operations Board.
Mr. Jenkins expressed his support of the Capital Committee recommendations. Chairman
Milde suggested incorporating this into the motion as a friendly amendment. Mr. Nohe and
Ms. Caddigan agreed.
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Mr. Cook announced Fairfax County unanimously agreed to support either budget option.
He is willing to support the motion. He made the point that VRE adopted a System Plan
without funding sources. One of the recommendations coming out of the Management
Audit is for VRE to create a business plan, which would identify funding for the first five
years of the System Plan. It is difficult to think of expanding the VRE system to 35,000
riders over the next 20 years without jurisdictions committing to pay for it.
Mr. Kelly stated he needs to look at this in the totality of what his jurisdiction is facing. He
agrees with Mr. Cook that if VRE is going to build a system, there needs to be a long term
plan. However, VRE may produce a business plan, but it has no control over the funds to
support the plan. Jurisdictional subsidy and fares can’t be raised enough to fund the
System Plan. It will have to come from federal and state funds. He stated the fundamental
flaw is that VRE is running a system that doesn’t know year to year what Congress and the
General Assembly will provide in funding.
Ms. Mitchell stated she likes the idea of a business plan. She does not necessarily agree that
the levels will go up and down, but VRE can approach from a planning perspective to
develop several scenarios of expected revenue. She strongly urged VRE to do mid-range
planning to launch the System Plan. She also encouraged VRE to develop a longer term
commitment for local contributions, since VRE won’t be able to apply for federal and state
matching funds without some local commitment.
Mr. Way observed that VRE has a System Plan but does not have a funding plan. Mr. Allen
stated during the next year, a Financial Plan will be developed which will compare the
capital and operating needs associated with the implementation of the System Plan 2040
and compare these needs to available funding sources. The Financial Plan will quantify the
needs for new funding streams and evaluate alternatives, including additional debt
financing.
Mr. Kelly stated he is not against long range planning, but for smaller jurisdictions funding
is a major issue. Mr. Nohe observed he is equally concerned for the larger jurisdictions. If
NVTA is going to be a significant funding partner, VRE needs to show that VRE is going to
be able to operate these improvements before NVTA can consider funding capital projects.
Ms. Bulova called the question. The Operations Board then voted on the motion and it
passed. The vote in favor was cast by Board Members Bulova, Caddigan, Cook, Jenkins,
Kelly, Milde, Mitchell, Nohe, Skinner, Smedberg, Tejada and Way.
Closed Session – 10
Mr. Cook moved, with a second by Mr. Smedberg, the following motion:
Pursuant to the Virginia Freedom of Information Act (Sections 2.2-3711A (7)
and (29) of the Code of Virginia); the VRE Operations Board authorizes a
Closed Session for the purpose of consultation with legal counsel concerning
the requirements of the Virginia Public Procurement Act and a discussion of
the award of a public contract involving the expenditure of public funds.
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The vote in favor was cast by Board Members Bulova, Caddigan, Cook, Jenkins, Kelly, Milde,
Mitchell, Nohe, Skinner, Smedberg, Tejada and Way.
The Board entered into Closed Session at 10:59 A.M. and returned to Open Session at 11:09
A.M.
Mr. Cook moved, with a second by Mr. Smedberg, the following certification:
The VRE Operations Board certifies that, to the best of each member’s
knowledge and with no individual member dissenting, at the just
concluded Closed Session:
1. Only public business matters lawfully exempted from open
meeting requirements under Chapter 37, Title 2.2 of the Code of
Virginia were discussed; and
2. Only such public business matters as were identified in the motion
by which the Closed Session was convened were heard, discussed
or considered.
The vote in favor was cast by Board Members Bulova, Caddigan, Cook, Jenkins, Kelly, Milde,
Mitchell, Nohe, Skinner, Smedberg, Tejada and Way.
Operations Board Members’ Time – 11
There were no comments.
Adjournment
Without objection, Chairman Milde adjourned the meeting at 11:10 A.M.
Approved this 16th day of January, 2015.
_____________________________
John Cook
Chairman
_____________________________
Paul Smedberg
Secretary
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CERTIFICATION
This certification hereby acknowledges that the minutes for the December 19, 2014 Virginia Railway Express Operations Board
Meeting have been recorded to the best of my ability.
Rhonda Gilchrest
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