Agenda Item 8-A
Action Item
To:
Chairman Smedberg and the VRE Operations Board
From:
Doug Allen
Date:
December 20, 2013
Re:
Approval of 2014 VRE Officers
________________________________________________________________
Recommendation:
The VRE Operations Board is being asked to approve the nominees for the 2014 VRE
Officers as recommended by the Nominating Committee. The nominees are as
follows:
Chairman:
Vice Chairman:
Secretary:
Treasurer:
Paul Milde (PRTC)
John Cook (NVTC)
Gary Skinner (PRTC)
Paul Smedberg (NVTC)
Installation of the 2014 VRE Officers shall take place at the January 17, 2014 VRE
Operations Board Meeting.
Background:
According to the VRE Bylaws, each of the Commissions shall provide two officers
from among its Operations Board Members. The offices of Chairman and Vice
Chairman shall not be held at the same time by members representing the same
jurisdiction or the same appointing Commission and the office of Chairman shall be
rotated each year between the two Commissions. Due to Mr. Zimmerman’s
departure from public office in 2014, Mr. Smedberg has agreed to serve as both
Immediate Past Chairman and Treasurer.
Virginia Railway Express
Operations Board
Resolution
8A-12-2013
Approval of 2014 VRE Officers
WHEREAS, the VRE Bylaws provides for the annual election of Officers to serve as
Chairman, Vice Chairman, Secretary and Treasurer, and
WHEREAS, the Office of Chairman shall be rotated each year between the two
Commissions, and
WHEREAS, the Chairman appointed a Nomination Committee and that Committee
has made its recommendation of 2014 VRE Officers to the Operations Board.
NOW, THEREFORE, BE IT RESOLVED THAT, The VRE Operations Board has
approved the election of Paul Milde as Chairman, John Cook as Vice Chairman, Gary
Skinner as Secretary and Paul Smedberg as Treasurer and Immediate Past Chairman
to serve as the 2014 VRE Officers to be installed at the January 17, 2014 Operations
Board Meeting.
Approved this 20th day of December 2013
______________________________
Paul Smedberg
Chairman
____________________________
John Cook
Secretary
2
Agenda Item 8-B
Action Item
To:
Chairman Smedberg and the VRE Operations Board
From:
Doug Allen
Date:
December 20, 2013
Re:
Referral of the Revised FY 2014 and Recommended FY
2015 VRE Operating and Capital Budgets to the
Commissions and Localities
Recommendation:
The VRE Operations Board is being asked to adopt the revised FY 2014 VRE
Operating and Capital Budget and the recommended FY 2015 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 2015 VRE Operating and Capital Budget was
initially prepared for review at the August VRE Operations Board meeting, and
subsequently considered at the September meeting. Since that time, it has been
discussed at numerous meetings of the Operations Board, the Capital Committee and
the CAO Task Force. The CAO Task Force met on December 12th to present their final
recommendations and discuss VRE responses to those recommendations.
Discussion:
The FY 2015 budget totals $128 million. The major assumptions are as follows:

Jurisdictional subsidy of $16,428,800; no increase compared to the FY 2014
level









No fare increase and a projected average daily ridership of 19,200 passengers,
which results in a total of $36.6M in fare revenue
Addition of a Fredericksburg line train in October 2014
Opening of the Spotsylvania station and 1,500 car parking facility in October
2014
Federal 5307 and 5337 (State of Good Repair) funding equal to the amount
received in FY 2014
Tiered capital matching funds from the State of the non-federal share for new
projects
State operating funds of $10.3 million, which is equivalent to the FY 2014
funding level
Fuel estimated at $3.50/gallon for a total cost of $5.9 million, including the
additional Fredericksburg line train
Grant funding from all sources for track access costs at 82%; similar to the
level provided in FY 2014
Addition of two FTE employees to the equipment operations department to
replace consultants currently overseeing contract employees at VRE
maintenance facilities – proposal is cost neutral.
The multi-year CIP includes both programmed and unprogrammed 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 or NVTA; or through other expected sources. The unprogrammed
projects are those that are pending a discretionary allocation by a funding authority
or for which a funding source has not yet been identified.
The programmed capital projects for FY 2015, including required local match, are
outlined below. Funding sources are FTA formula funds, unless otherwise indicated.











Positive train control (PTC) - $2.0M (final phase)
Rolling stock – Non-NVTA - $11.0M (state and local funding only)
Rolling stock – system funds $2.2M
Maintenance facility – $17.1M
Equipment storage - $5.3M
Alexandria station/platform - $.4M
Project development - $2.0M (capital reserve)
Capital reserve contribution - $3.0 (local funds only)
Facilities infrastructure - $1.0M
Lorton platform improvements - $2.0M (CMAQ)
Rippon platform improvements - $350k (CMAQ)
The unprogrammed capital projects for FY 2015 include the proposed submission to
NVTA for FY 2014 unallocated funds and FY 2015 and FY 2016 funds.

Slaters Lane crossover and signals: $7.0M




Rippon platform expansion: $15.0M
Manassas Park station parking expansion: $19.0M
Crystal City platform expansion study: $2.0M
Franconia Springfield platform expansion: $5.0M
The FY 2015 budget exceeds the prior year budget by $36.2M. Material expenditure
line item changes are noted below; adjustments are in comparison to the FY 2014
adopted budget.






Capital costs increased by $36.5M, primarily as the result of additional 5337
(State of Good Repair) federal funding
Equipment maintenance increased by $1.2M to reflect the addition of the
Fredericksburg line train leased equipment and fuel
Keolis contract costs are budgeted at a net increase of $1.2M to reflect a 3.5%
increase in accordance with the contract requirements plus costs for the
Fredericksburg line train
Access fee costs increased by $1.2M to reflect an estimated increase to the
AAR index for the first quarter of calendar 2012 for Amtrak, the contractual
increase of 4% for CSX and NS, and the additional Fredericksburg line train
Debt service costs decreased by $6.9M to reflect the retirement of the 1998
bonds. Bonds were funded with state and local match, with no federal
participation.
In the event the Operations Board chooses to rebid the operations and
maintenance contract prior to the optional renewal date of July 1, 2015, $2M
is included for mobilization funding. This cost is funded with one-time funds
from the prior year surplus.
The budget also includes a six-year financial forecast for the period FY 2014 through
FY 2020. A six-year forecast was prepared that includes no fare increase in FY 2015
and a 5% fare increase in FY 2016, FY 2018 and FY 2020.
In order to assist the Operations Board review, the following information is attached:

A comparison of projected fuel tax revenue compared to the VRE subsidy
amount for FY 2014 and FY 2015

Actual operating and capital reserve levels at the end of FY 2013 and as
projected for FY 2014 and FY 2015
FY 2014 Amended Budget
The FY 2014 budget has been revised to reflect current projections for revenue and
expenses. The major changes are as follows:

Additional state operating funds in the amount of $3.3M





Additional state access fee funding in the amount of $238k
Capital projects increased by $18.8M due to additional federal funding;
primarily 5337 (State of Good Repair) funds. Projects include:
o Replacement railcars: $8.1M
o Expansion railcars: $1.9M
o Equipment storage: $3.4M
o Maintenance facility: $5.4M
Capital projects increased by $30.5M due to NVTA funding for the following
projects:
o Expansion railcars: $19.8M
o Lorton – second platform: $7.9M
o Alexandria pedestrian tunnel: $1.3M
o Gainesville-Haymarket study: $1.5M
Operating costs were increased by a net amount of $712k, including the
following :
o Rolling Stock repairs and maintenance increased by $600k for
carryover enhancement projects from FY 2013
o Planning consulting costs were increased by $138k for carryover
projects from FY 2013
o Safety and Security costs increased by $45k for Broad Run station
foliage removal in accordance with the recommendation of the Threat
and Vulnerability Assessment
$1.23M was contributed to the capital reserve
Full supporting budget documents will be provided early in the week of December
16.
Virginia Railway Express
Operations Board
Resolution
8B-12-2013
Referral of the Revised FY 2014 and Recommended
FY 2015 VRE Operating and Capital Budgets
to the Commissions and Localities
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 2015 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
19,200 and 34 trains.
NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board does
hereby recommend that the Commissions adopt the revised FY 2014 and
recommended FY 2015 VRE Operating and Capital Budgets and forward the FY 2015
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
Commissions authorize the Executive Directors of both PRTC and NVTC to 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 2014 and FY 2015; and,
BE IT FURTHER RESOLVED THAT, the VRE Operations Board recommends that the
Commissions authorize the Executive Director of NVTC to submit to the
Commonwealth the approved budget as part of the FY 2015 state aid grant
applications; and,
BE IT FURTHER RESOLVED THAT, the VRE Operations Board recommends that the
Commissions authorize the Chief Executive Officer of VRE to submit appropriate
projects to the Northern Virginia Transportation Authority or other funding
authorities on behalf of the Commissions.
Approved this 20th day of December 2013.
_______________________________
Paul Smedberg
Chairman
____________________________
John Cook
Secretary
FY14
Jurisdiction
Prince William County
Manassas
Manassas Park
Stafford
Spotsylvania
Fredericksburg
Total
Projected
Fuel Tax
15,247,882
1,430,666
941,227
5,186,886
4,361,503
1,792,673
28,960,837
VRE Subsidy
5,748,203
757,804
574,709
2,529,281
1,313,600
427,728
11,351,325
Net
9,499,679
672,862
366,518
2,657,605
3,047,903
1,364,945
17,609,512
Proposed
VRE Subsidy
5,485,333
686,944
401,762
2,689,391
1,401,382
581,244
11,246,056
Net
9,750,681
742,608
538,733
2,493,458
2,956,726
1,210,037
17,692,243
FY15
Jurisdiction
Prince William County
Manassas
Manassas Park
Stafford
Spotsylvania
Fredericksburg
Total
Projected
Fuel Tax
15,236,014
1,429,552
940,495
5,182,849
4,358,108
1,791,281
28,938,299
Note: Does not include subsidies for other transit agencies, such as PRTC and Fredericksburg Regional Transit
12/13/13
R:\Executive\Board Kits\2013 Board Kits\December 2013\FY15 Budget\[Fuel Tax vs Subsidy 12-12-13.xlsx]Sheet1
VRE Reserve Funds - Actual and Estimated
Description
Amount
Percent of
Ongoing Expenses
Operating Reserve
FY 2013 Actual
FY 2014 Amended Budget
FY 2015 Proposed Budget
14,871,873
15,483,242
16,037,775
18.1%
17.1%
19.7%
Unallocated Capital Reserve
FY 2013 Actual
FY 2014 Amended Budget
FY 2015 Proposed Budget
3,374,046
7,606,221
8,606,221
12/13/13
R:\Executive\Board Kits\2013 Board Kits\December 2013\FY15 Budget\[VRE Reserves FY13 - FY15.xlsx]Summary
VRE Reserves FY13 - FY15
Agenda Item 8-C
Action Item
To:
Chairman Smedberg and the VRE Operations Board
From:
Doug Allen
Date:
December 20, 2013
Re:
Approval of a Scope of Services and Recommend Action
that the Commissions Issue a Request for Proposals
(RFP) for Management Audit Services
Recommendation:
The VRE Operations Board is being asked to approve the attached scope of services
and recommend the Commissions issue a Request for Proposals (RFP) to procure
Management Audit Services.
Background:
At their respective October 3, 2013 Commission meetings, the Northern Virginia
Transportation Commission and Potomac and the Rappahannock Transportation
Commission passed resolutions creating the Joint Audit Committee and directing
that committee to develop a scope of work and plan of execution for a VRE
management audit for the Commissions’ review and approval.
The Joint Audit Committee met on November 15, 2013 to discuss the proposed
purpose of the audit as well as develop a scope of work. It was established that a
management audit is desired because audits of this sort are a healthy practice for
organizations to ensure optimal operational and procedural efficiency.
The scope of work for the RFP includes: reviewing Governance documents, recently
completed audits and conducting interviews to gain a comprehensive understanding
of the various issues; reviewing the APA report and providing an assessment of key
points and recommended actions; reviewing internal controls and recommending
procedural improvements and further exploring various issues in more detail as
becomes necessary.
To ensure independence, the Commissions will procure the services and award the
contract.
Fiscal Impact:
Funding is provided for in the FY 2014 Operating Budget
2
Virginia Railway Express
Operations Board
Resolution
8C-12-2013
Approval of a Scope of Services and Recommend Action
that the Commissions Issue a Request for Proposals (RFP)
for Management Audit Services
WHEREAS, in the course of establishing a VRE Joint Audit Committee, the
commissions expressed a desire for a VRE management audit to be undertaken,
overseen by the VRE Joint Audit Committee; and
WHEREAS, the VRE Joint Audit Committee has shaped the scope of the prospective
management audit to examine VRE’s current practices and the practices of other,
comparable organizations to assess whether changes for the betterment of the
organization are warranted; and
WHEREAS, the VRE Joint Audit Committee is recommending to the VRE Operations
Board that the VRE Operations Board endorse the scope of this audit as presented
and forward it to the Commissions with a recommendation that the Commissions
authorize the commencement of a competitive procurement to contract for outside
assistance for the conduct of the management audit; and
NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board hereby
endorses the management audit scope of services as presented and recommends
that the Commissions authorize the commencement of a competitive procurement to
contract for outside assistance for the conduct of the management audit.
Approved this 20th day of December 2013
______________________________
Paul Smedberg
Chairman
____________________________
John Cook
Secretary
3
Scope of Services for the VRE Management Audit
Introduction
The Virginia Railway Express (VRE) is a service jointly owned by two transportation commissions:
the Northern Virginia Transportation Commission (NVTC) and the Potomac and Rappahannock
Transportation Commission (PRTC). Launched in 1992, the service has evolved from a startup project to
the tenth largest commuter rail system in the country, currently transporting some 20,000 riders per
day. To oversee the service, the commissions created an Operations Board (“the VRE Operations
Board”) at the outset, consisting of appointees of the commissions’ member jurisdictions who are also
members of one or the other parent commission. The commissions also delegated specified decisionmaking authority to the VRE Operations Board and, in the intervening twenty years, the VRE Operations
Board has been delegated greater decision-making authority on an incremental basis.
VRE is an out-sourced service – all train operations and maintenance is contracted out
(presently to Keolis), and VRE trains operate on freight-owned trackage maintained by the freight
railroads, dispatched by one of the two freight railroads (the CSXT Corporation). Contract management,
customer service, service planning, engineering management, procurement, and specified other
functions are performed by in-house staff, some of whom are dedicated to VRE service singularly while
others are shared staff resources performing functions on behalf of VRE and other, commissionsponsored services / initiatives. In-house staffing levels have increased modestly over time, and some
shifts have been made to increase staffing dedicated to VRE singularly as the scale of the operation has
grown. The VRE service has also had a chief executive who reports to the VRE Operations Board since its
inception, an at-will and contract employee.
Because VRE is a service jointly owned by the two commissions, not a legal entity, the
commissions are the signatories to VRE-related contracts, and the commissions serve as grant applicants
for VRE-related operating and capital grants – NVTC for state-sponsored grants and PRTC for federallysponsored grants. As a recipient of both federal and state grants, the commissions and its VRE service
has been the subject of customary grant compliance (and triennial) audits, and financial audits are done
annually. To date, however, there has not been a management audit, so the present undertaking is a
first-time venture. The firm retained to conduct this management audit will be expected to review the
most recent round of customary, completed audits, and a recently completed audit conducted by the
Commonwealth of Virginia’s Auditor of Public Accounts (which focused on VRE’s governance structure),
“mining” these audits for insights about the VRE operation and practices.
The management audit will be overseen by a newly established VRE Joint Audit Committee (“the
Committee”), a creation of the two commissions that is answerable to the two commissions. The
Committee was established with the explicit intent of presiding over all the VRE-related audits, and
recommending actions that audit results might indicate are warranted. In establishing the Committee,
the commissions also explicitly directed that the Committee oversee this first-time, management audit.
Accordingly, the Committee has been directly involved in fashioning the scope of services, which
envisions interviews with members of the Committee as another important source of insight about the
VRE operation and practices.
A management audit is desired by the commissions because audits of this sort are a healthy
practice for organizations to take stock of their current practices and the practices of other, comparable
organizations to assess whether changes for the betterment of the organization are warranted and, if
so, what form those changes might take. It is not motivated by a belief that anything is “broken”. And
the commissions believe a management audit is timely now because the VRE operation has, in the
course of its first twenty years, evolved from a startup project to the tenth largest commuter rail system
in the country, during which time changes in practices have been made incrementally without a
systematic examination of the operation in its entirety.
Because the management audit is not being instigated by anything perceived to be “broken”,
the scope of services does not explicitly target subjects for management audit attention. Instead, the
scope of services delineates a set of initial tasks that can be characterized as information gathering
efforts necessary to fashion a set of initial findings, which will set the stage for determinations about
specific subject areas warranting more in-depth work. Informed by the management consultant’s
findings, the Committee will make recommendations to the commissions, and the commissions
themselves will determine what more work is to be done. Because the scope of services is defined as
described, proposers are being asked to formulate how the tasks that are specified will be performed,
furnishing estimates of person hours by skill type and budgets for same, supplemented by hourly
rates for follow-on work that the commissions decide they want to undertake, where the hourly rates
for the follow-on work are differentiated by skill type, level of management experience, etc.. All such
follow-on work will be performed on a task order basis, with each task order negotiated by the parties.
To more fully inform would-be proposers of what they would be examining during the course of
the initial tasks, a listing of the recently completed audits can be found in attachment one. That listing
constitutes a part of the initial fact-finding. In addition to those audits, proposers should anticipate the
need to review “governance” documents related to the VRE service, because the “governance”
documents are a source of further insight about current practices and why they are as they are. That
said, proposers should understand that the management audit is not intended to be an assessment of
governance. “Governance” documents that are to be examined are appended (attachment two),
namely:





The VRE Master Agreement
The VRE Bylaws
A document describing the delegation of authority from the commissions to the VRE Operations
Board;
An organization chart; and
The current year VRE budget.
Detailed Work Plan for the Management Audit
Task 1
Interview Committee members to gain a good understanding of the various issues, perspectives,
objectives.
Task 2
Review organizational structure of VRE including the duties performed by employees in the VRE
structure and duties performed by others. Review the Master Agreement sections related to the VRE
functions and processes. This task is not an assessment of governance, but could include a review of
governance structure to better assess the organizational structure and duties performed within the VRE
organizational structure.
Task 3
Review the audits that are done on a routine basis to judge what other areas might be useful to
evaluate. Since audit and reporting activities consume a significant amount of staff resources, any
additional audits should be considered carefully defined to target areas not already well covered.
Task 4
Review the APA report and provide the Committee with an assessment of the Key Points presented in
the report and recommend actions relative to each.
Task 5
Internal controls are achieved by establishing a framework of processes that help ensure achievement of
operational objectives as well as proper reporting and compliance. The recently completed APA report
included suggestions related to internal control frameworks, specifically referencing the work done by
the Committee of Sponsoring Organizations (COSO) in this regard. Following the review of VRE’s
internal structure and relationship of the Operations Board and Commissions, the consultant should
assess and recommend enhancements to internal control processes.
Follow-on Tasks
There will likely be other issues the commissions will want to explore in more detail. The consultant will
be available to undertake a reasonable number of these additional topics.
Procurement Approach
This is a competitive procurement and individuals or firms with the following characteristics are
encouraged to propose:
1.
Expertise and experience with public management audits and more particularly experience with
public transportation or rail and multi-jurisdictionally-sponsored services.
2.
Excellent listening skills and demonstrated adaptability to allow the “flow” of the work once it
begins to shape the conduct of the ensuing work. This is not a “cookie cutter” engagement and we
don’t want a formulaic approach.
3.
Well acquainted with the industry and industry experts, who can advise on possible peer review
candidates if the management audit findings indicate that peer reviews would add value, and help us
arrange for their engagement.
4.
Possess intimacy with public transportation governance practices (especially with rail and multijurisdictionally-sponsored services), and an appreciation for knowledge and know-how required to
function effectively in a board capacity.
Proposers are to submit proposals by no later than noon on ___(date)___ , conforming in terms
of required content with the proposal specifications appended here as attachment three. Proposals will
be evaluated by a senior management team employing the following initial evaluation criteria, leading
to a short listing of proposers that are in the competitive range based on the initial evaluation:
1.
Project manager’s experience
20%
2.
Proposal team’s experience
20%
3.
Proposal team’s approach
20%
4.
Cost for specified tasks
20%
5.
Hourly rates for follow-on work
10%
Note that the criteria for the initial evaluation totals 90%; the remaining 10% is reserved for the
final evaluation, which will be done after interviews of the short-listed firms conducted by the same
senior management team in conjunction with the Committee. A “selection” recommendation will be
made to the VRE Operations Board, which will be asked to concur in the recommendation and advance
it to the commissions for authorization to award. The procurement schedule as now envisioned is
appended here as attachment four.
Attachment One
Recent Audits
Scheduled
•
Audit of financial statements - includes consideration of internal control over financial reporting,
and A-133 single audit of compliance with federal requirements (portion conducted at VRE). Done
annually.
•
VDRPT audit – compliance with broad range of state requirements, including following grant
instructions and requirements, record-keeping, documentation, and policies and procedures. Every
three years
•
FTA triennial review - compliance with broad range of federal requirements, including financial
and administrative capacity; maintenance of assets and asset records; procurement methods, policies
and recordkeeping; adhering to ADA, EEO and Title VI rules; safety and security plans and programs.
Every three years.
•
FRA review of yards – maintenance and storage of equipment, operating rules and procedures,
etc. Every three years.
•
APTA Security (on behalf of the FRA) – threat and vulnerability assessment. Every three years.
Unscheduled
•
FTA – Financial Management Oversight review – conducted to review railcar purchases and
other aspects of PRTC/VRE financial management. FY 2010
•
FTA – ARRA review – specific focus on the use of Recovery Act funds (several years ago)
•
DHS desk audits – specific focus on the use of FEMA/Homeland Security grants.
•
APA governance review.
•
DRPT special review – early 2012
•
Compensation study – FY 2013
Audit Matrix
x
x
Compensation
study
Planned
Management
Audit
DRPT Special
Review
FRA Spot
Inspection
FTA - ARRA
FTA -Financial
Management
Oversight
APTA Security
Unscheduled
FRA Triennial
FTA Triennail
DRPT Triennail
Triennail
APA Governance
Areas Covered:
Financial Statements
Internal Controls
Compliance w/Federal
Requirements
Compliance w/State Master
Agreement
Compliance w/FRA Procedures
Governance
Employee/Org Improvement
Strategic Planning
Management of Resources
A-133 Single Audit
Report
Annual
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Attachment two
Governance Documents
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



The VRE Master Agreement
The VRE Bylaws
Delegation of Authority: Board Item 8B-11-2007
The VRE Organizational Chart
FY 2014 VRE Budget
Agenda Item 8-D
Action Item
To:
Chairman Smedberg and the VRE Operations Board
From:
Doug Allen
Date:
December 20, 2013
Re:
Approval of Submission of VRE Project List to the NVTA
for FY 2014-16 Funding Consideration
Recommendation:
The VRE Operations Board is being asked to recommend the Commissions approve
the submission of the attached list of VRE projects to the Northern Virginia
Transportation Authority (NVTA) for consideration for funding in its fiscal year (FY)
2014-2016 program.
Background:
The passage of House Bill (HB) 2313 requires the NVTA to fund highway projects
that have been both included in TransAction 2040 and evaluated for congestion
relief and emergency evacuation by VDOT according to Virginia Code §33.1-13.03:1
or mass transit capital projects that increase capacity.
On July 24, 2013 NVTA approved its FY 2014 program of highway and transit
projects. In addition to a list of Pay-As-You-Go projects valued at $116,058,000, a
project bond package totaling $93,735,000 was also approved. The total of the PayAs-You-Go and bond lists is $209,793,000. Total revenue estimates for FY 2014 are
approximately $270,000,000. Four VRE projects totaling $30,500,000 were selected
for funding: fleet expansion (9 additional coaches), Lorton station platform
expansion and second platform, Alexandria station pedestrian tunnel and platform
improvements and Gainesville-Haymarket expansion study.
On December 12, 2013 NVTA issued a Call for Projects for consideration for funding
for the unallocated FY 2014 revenues as well as expected FY 2015-2016 revenues.
Project submissions will be due to NVTA on January 31, 2014. The NVTA Board will
determine the final project list to release for public comment at an as yet to be
determined public hearing.
The following VRE projects increase VRE capacity and are recommended to be
forwarded to NVTA for consideration. The costs are preliminary estimates. Detailed
budgets will be developed if the project is selected for funding.
1. Slaters Lane crossover and signals, $7M
2. VRE Rippon platform expansion (expand existing platform + second
platform), $15.0M
3. VRE Manassas Park station parking expansion (parking structure +
pedestrian connection), $19M
4. VRE Crystal City platform expansion study, $2.0M
5. VRE Franconia-Springfield platform expansion, $5.0M
All of the proposed projects will expand VRE passenger-carrying capacity. VRE
capacity includes seats on trains as well as station capacity (e.g., parking and
platform capacity) and train storage capacity. The above projects support the VRE
capacity expansion made possible with the fleet expansion funded by NVTA in its
initial FY 2014 program.
The Operations Board is being asked to recommend that the Commissions authorize
the VRE CEO to submit the projects for funding and to execute all project agreements
on behalf of the Commissions. NVTC will provide oversight for the Commissions on
the reimbursement of project expenditures.
Fiscal Impact:
The submission of a project list has no fiscal impact. If selected for funding, the NVTA
funds would allow currently identified projects to be completed or initiated on an
accelerated schedule.
2
Virginia Railway Express
Operations Board
Resolution
8D-12-2013
Approval of Submission of VRE Project List to the
NVTA for FY 2014-16 Funding Consideration
WHEREAS, the passage of House Bill (HB) 2313 requires the NVTA to fund highway
projects that have been both included in TransAction 2040 and evaluated for
congestion relief and emergency evacuation by VDOT or mass transit capital projects
that increase capacity; and,
WHEREAS, as NVTA approved an initial fiscal year (FY) 2014 project list in July
2013; and,
WHEREAS, NVTA has now issued a Call for Projects to agencies and jurisdictions for
consideration for funding with the unallocated FY 2014 revenues as well as expected
FY 2015-2016 revenues.
NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board
recommends the Commissions approve the submission of the attached list of VRE
projects to the NVTA for consideration for funding in FY 2014-2016; and,
BE IT FURTHER RESOLVED THAT, the Operations Board recommends that the
Commissions authorize the Chief Executive Officer of VRE to submit the approved
projects for funding, to make any necessary corrections to project amounts or
descriptions, and to execute all project agreements on behalf of the Commissions.
Approved this 20th day of December 2013
______________________________
Paul Smedberg
Chairman
_________________________
John Cook
Secretary
3
VRE Capacity-Expansion Projects for Consideration for
NVTA FY 2014-2016 Funding
1. Slaters Lane crossover and signals
2. VRE Rippon platform expansion
3. VRE Manassas Park station parking expansion
4. VRE Crystal City platform expansion study
5. VRE Franconia-Springfield platform expansion
4
Agenda Item 8-E
Action Item
To:
Chairman Smedberg and the VRE Operations Board
From:
Doug Allen
Date:
December 20, 2013
Re:
Authorization to Award a Contract for Banking Services
and a Line of Credit
Recommendation:
The VRE Operations Board is being asked to authorize the Chief Executive Officer to
execute a contract for banking services with (name of firm to be provided at the
Operations Board meeting via bluesheet)for a base period of three years, with an
option to extend for up to two additional years, with the CEO exercising the option
years at his discretion. The total contract value for the five year period will be in an
amount not to exceed (cost to be provided at the Operations Board meeting via
bluesheet.) The contract includes a provision for a $1 million line of credit.
Background:
On June 21, 2013, the VRE Operations Board approved a request to issue a Request
for Proposals (RFP) for banking services and a line of credit. A mailing list of eleven
prospective Offerors was established for the solicitation to ensure access to adequate
sources of services. On September 16, 2013, an RFP was issued and proposals were
due on November 1, 2013. Four responses were received. The RFP included
banking services for both VRE and PRTC to be awarded separately to one or more
Offerors.
The Technical Evaluation Teams from VRE and PRTC met to review and discuss the
proposals and conducted interviews with the top three firms. It was determined by
the VRE Team that the proposal from (name of firm to be provided at the
Operations Board meeting via bluesheet) was technically compliant and provided
the best combination of services and price, in accordance with the qualifications
established in the RFP.
In March 2009, VRE awarded a contract to SunTrust Bank for banking services and
the provision of a $1 million line of credit. The last extension of this contract will
expire at the end of March 2014. SunTrust did not submit a proposal in response to
the current solicitation.
The new contract will be for a three year base year and two option years, with the
VRE CEO exercising the option years at his discretion. This authorization allows the
transition to begin to the new provider of banking services and to extend the current
contractual arrangement with SunTrust for up to an additional three months, if
needed, to assure a seamless transition for all services. As the procurement was
structured to provide separate contracts for VRE and PRTC, this action awards a
contract to VRE only and seeks Commission approval for the CEO to execute this
contract and sign all associated documents.
Fiscal Impact:
Fees for banking services are paid either as a deduction from interest earnings or
debited directly from VRE’s operating account. Funds are allocated in the FY 2014
annual budget based upon estimated costs. Funding for future years will be included
in each proposed annual budget.
2
Virginia Railway Express
Operations Board
Resolution
8E-12-2013
Authorization to Award a Contract for
Banking Services and a Line of Credit
WHEREAS, on June 21, 2013, the VRE Operations Board authorized VRE staff to
solicit proposals for banking services; and,
WHEREAS, four proposals were received and the proposal from (name of firm to
be provided at the Operations Board meeting via bluesheet) was deemed the
most advantageous.
NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board
recommends that the Commissions authorize the Chief Executive Officer to enter
into a contract for banking services and the provision of a $1M line of credit with
(name of firm to be provided at the Operations Board meeting via bluesheet)
for a period of three years, with an option to extend for up to two additional years for
an amount not to exceed (cost to be provided at the Operations Board meeting
via bluesheet) over the five year period; and,
BE IT FURTHER RESOLVED THAT, the VRE Operations Board recommends that the
Commissions authorize the Chief Executive Officer to sign any associated banking
documents; and,
BE IT FURTHER RESOLVED THAT, the following be designated as authorized
signatories for VRE’s accounts:
 Chief Executive Officer
 Chief Operating Officer/Deputy CEO
 Chief Financial Officer
Approved this 20th day of December 2013
______________________________
Paul Smedberg
Chairman
____________________________
John Cook
Secretary
3
Agenda Item 8-F
Action Item
To:
Chairman Smedberg and the VRE Operations Board
From:
Doug Allen
Date:
December 20, 2013
Re:
Authorization to Award a GEC VI Task Order for Design
and Construction Management Services for the
Alexandria King Street Pedestrian Tunnel Project
Recommendation:
The VRE Operations Board is being asked to authorize the Chief Executive Officer to
award a GEC VI Task Order to Gannett Fleming for Design and Construction
Management Services for the Alexandria King Street Tunnel Project in an amount of
$1,728,151, plus a 5% contingency of $86,408, for a total amount not to exceed
$1,814,559.
Background:
In September of 2008, the Washington Metropolitan Area Transit Authority
(WMATA) completed a pedestrian circulation analysis that identified general options
to improve pedestrian traffic around the VRE/Amtrak and Metrorail King Street
stations. One opportunity identified was the construction of a new tunnel from the
VRE/Amtrak station directly to the Metrorail station. This project would improve
ADA access, eliminate the at-grade track crossing, and upgrade the eastern
VRE/Amtrak platform. Railroad capacity and operational flexibility would also be
improved by allowing passenger trains to use the eastern tracks.
VRE, Amtrak, WMATA, and the City of Alexandria all supported the project and VRE
subsequently sought and received project funding from the Virginia Department of
Transportation (VDOT) for design and construction of the project. Funding was
approved via the Federal Highway Administration (FHWA) Rail Crossing and Rail
Safety program, which is administered through VDOT. VRE also sought and received
funding through NVTA.
On May of 2012, the Operations Board approved the issuance of a task order that
would complete a feasibility study and make recommendations regarding final
design. The feasibility study was completed in January 2013.
Since this time, VRE requested proposals from the GEC VI Contractors for final design
and construction management. VRE received two proposals and the evaluation team
determined Gannett Fleming provided the best overall approach to the design and
construction management process. The proposals were submitted to VDOT for their
evaluation and approval.
VRE is now ready to award a Task Order for the design and construction
management work to support issuing a solicitation for project construction which is
the next major milestone.
Project Budget:
The current VRE project budget is estimated at $11,099,860. As the design efforts
progress, specifically the tunneling method and coordination of all construction
activity required, VRE will refine the estimated costs.
Fiscal Impact:
Funds for the project are included in VRE’s Capital Improvement Program. Grant
funds are provided by VDOT through the Federal Highway Administration (FHWA)
Rail Crossing and Rail Safety program. Funding is also provided by NVTA. No local
match is required. As such, $8,721,865 is being provided by VDOT and $1,300,000 is
being provided by NVTA for a total of $10,021,865. Additional funds will be secured,
if required, prior to commencement of project construction. No VRE funds are being
allocated for this project at this time.
2
Virginia Railway Express
Operations Board
Resolution
8F-12-2013
Authorization to Award a GEC VI Task Order for
Design and Construction Management Services for the
Alexandria King Street Pedestrian Tunnel Project
WHEREAS, VRE sought and received funding from the Virginia Department of
Transportation and Northern Virginia Transportation Authority for design and
construction of the King Street Station pedestrian tunnel project; and,
WHEREAS, the project will improve ADA access, eliminate the at-grade track
crossing, upgrade the eastern VRE/Amtrak platform, and improve capacity and
operational flexibility; and,
WHEREAS, on May 18, 2012, the Operations Board approved the issuance of a task
order for a feasibility study and the study was completed in January of 2013; and,
WHEREAS, authorization is now being sought to award a Task Order for final design
of the pedestrian tunnel.
NOW, THEREFORE, BE IT RESOLVED THAT, The VRE Operations Board is being
asked to authorize the Chief Executive Officer to award a GEC VI Task Order to
Gannett Fleming for Design and Construction Management Services for the
Alexandria King Street Tunnel Project in an amount of $1,728,151, plus a 5%
contingency of $86,408, for a total amount not to exceed $1,814,559.
Approved this 20th day of December 2013
______________________________
Paul Smedberg
Chairman
____________________________
John Cook
Secretary
3
Agenda Item 8-G
Action Item
To:
Chairman Smedberg and the VRE Operations Board
From:
Doug Allen
Date:
December 20, 2013
Re:
Authorization to Award a GEC VI Task Order to Provide
Evaluations of VRE Facilities in Support of VRE’s Transit
Asset Management Program
Recommendation:
The VRE Operations Board is being asked to authorize the Chief Executive Officer to
award a GEC VI Task Order to STV/RWA for evaluations of VRE facilities in support
of VRE’s Transit Asset Management (TAM) Program in the amount of $174,253, plus
a 5% contingency of $8,713, for a total amount not to exceed $182,966.
Background:
VRE operates from eighteen (18) station facilities and two (2) maintenance and
storage facilities. As these facilities age, it is imperative that a robust maintenance
and rehabilitation strategy be evaluated and implemented to ensure these assets
remain in a State of Good Repair (SGR). Not only is this in VRE’s best interest, it is a
requirement for any agency that wishes to receive Federal Transit Administration
(FTA) funding under the Moving Ahead for Progress in the 21st Century (MAP-21)
legislation that became effective in October 2012.
MAP-21 requires that agencies receiving federal funding submit an annual Transit
Asset Management (TAM) Plan. Per Title 23 of the United States Code (U.S.C.), Asset
Management is defined as:
“…a strategic and systematic process of operating, maintaining, and improving
physical assets, with a focus on both engineering and economic analysis based
upon quality information, to identify a structured sequence of maintenance,
preservation, repair, rehabilitation, and replacement actions that will achieve
and sustain a desired state of good repair over the lifecycle of the assets at
minimum practicable cost.”
Since 2012, VRE has focused on the evaluation and enhancement of the locomotive
and passenger rail car fleet segment of the VRE Transit Asset Management (TAM)
program. As such, VRE has implemented an evaluation methodology consistent with
the requirements the Transit Economic Requirements Model (TERM) established by
the FTA. The requirements of TERM are to ensure VRE deploys a system that
evaluates transit assets physical conditions and how the assets conditions affect
performance. From this, VRE determines how to improve the assets performance
and management practices through maintenance and rehabilitation programs and
properly plan for funding needs of these programs.
VRE received two responses from GEC VI firms. Both proposals were below the
estimate for this work. The proposal received from the recommended firm clearly
conveyed their understanding of the scope of work and could accommodate a timely
turnaround of the evaluations.
This Task Order will allow VRE to have an independent evaluation and analysis of
the station and maintenance and storage facilities to use as the baseline evaluation of
these assets going forward and provide recommendations for maintenance cycles
and rehabilitation projects. Evaluations will be conducted in accordance with the
TERM guidelines set forth by the FTA and adopted by VRE.
Fiscal Impact:
Funding is provided for in the FY 2014 CIP for Facilities Infrastructure Renewal. The
total budget for Facilities Infrastructure Renewal is $500,000 ($400K in 5337 funds,
$55K in state funds and $45K in local funds).
2
Virginia Railway Express
Operations Board
Resolution
8G-12-2013
Authorization to Award a GEC VI Task Order to Provide Evaluations
of VRE Facilities in Support of VRE’s Transit Asset Management
Program
WHEREAS, VRE operates from eighteen station facilities and two maintenance and
storage facilities; and,
WHEREAS, MAP-21 requires agencies receiving federal funding submit an annual
Transit Asset Management (TAM) Plan; and,
WHEREAS, VRE has focused on the evaluation and enhancement of the locomotive
and passenger rail car fleet segment of the VRE Transit Asset Management program;
and,
WHEREAS, this Task Order will allow VRE to have an independent evaluation and
analysis of the station and maintenance and storage facilities as required by VRE’s
Transit Asset Management program.
NOW, THEREFORE, BE IT RESOLVED THAT, The VRE Operations Board is being
asked to authorize the Chief Executive Officer to award a GEC VI Task Order to
STV/RWA for evaluations of VRE facilities in support of VRE’s Transit Asset
Management (TAM) Program in the amount of $174,253, plus a 5% contingency of
$8,713, for a total amount not to exceed $182,966.
Approved this 20th day of December 2013
______________________________
Paul Smedberg
Chairman
____________________________
John Cook
Secretary
3
Agenda Item 8-H
Action Item
To:
Chairman Smedberg and the VRE Operations Board
From:
Doug Allen
Date:
December 20, 2013
Re:
Authorization to Issue an Invitation for Bids (IFB) for
the Purchase of Locomotive Fuel Injector Assemblies
Recommendation:
The VRE Operations Board is being asked to authorize the Chief Executive Officer to
issue an Invitation for Bids (IFB) for the purchase of locomotive electronic fuel
injector assemblies.
Background:
In 2011, VRE received twenty (20) new MP36PH-3C diesel engine locomotives that
comply with locomotive emissions regulations as established by the Environmental
Protection Agency (EPA). In order to maintain compliance, VRE must replace the
electronic fuel injectors during the three (3) year maintenance cycle. Each
locomotive will require replacement of sixteen (16) electronic fuel injector
assemblies.
The IFB will be developed for the purchase of qualified electronic unit injector (EUI)
assemblies to obtain a fixed-firm unit price contract. VRE staff will return to the
Operations Board with a recommendation to award a contract.
Fiscal Impact:
Funding is provided for in the current FY 2014 budget for locomotive maintenance.
Funding for future fiscal years will be included in the proposed annual budget.
Virginia Railway Express
Operations Board
Resolution
8H-12-2013
Authorization to Issue an Invitation for Bids (IFB) for the
Purchase of Locomotive Fuel Injector Assemblies
WHEREAS, VRE received twenty new locomotives in 2011; and,
WHEREAS, the new locomotives were delivered in compliance with the
Environmental Protection Agency (EPA) regulations for emissions reductions for
locomotives; and,
WHEREAS, VRE must replace the electronic fuel injectors during the 3 year
maintenance cycles to maintain the locomotive engines in compliance with EPA
regulations; and,
WHEREAS, the electronic fuel injectors will be purchased from a qualified source.
NOW, THEREFORE, BE IT RESOLVED THAT, The VRE Operations Board is being
asked to authorize the Chief Executive Officer to issue an Invitation for Bids (IFB)
for the purchase of locomotive electronic fuel injector assemblies.
Approved this 20th day of December 2013
______________________________
Paul Smedberg
Chairman
____________________________
John Cook
Secretary
2
Agenda Item 8-I
Action Item
To:
Chairman Smedberg and the VRE Operations Board
From:
Doug Allen
Date:
December 20, 2013
Re:
Discussion of the Legislative Agenda and Possible Action
Background:
At the November 15, 2013 VRE Operations Board Meeting the Board approved the
2014 Legislative Agenda; however, the Board also indicated that further discussion
was warranted with regard to the upcoming changes to the weighted voting formula
and whether pursuit of changes to the legislation should be included in an amended
2014 Legislative Agenda. A resolution is provided in case the Operations Board opts
to take action.
The possible amendment could read as follows:
Governance

Seek changes to the weighted voting legislation adopted in the 2013 General
Assembly session.
Fiscal Impact:
There is no direct funding impact associated with adopting this agenda item.
Virginia Railway Express
2014 Legislative Agenda
Adopted November 15, 2013
Federal
Monitor Issues Related to Positive Train Control
Under the US Rail Safety Improvement Act of 2008, Congress mandated that the
Federal Railroad Administration fully implement Positive Train Control (PTC) by
2015. VRE continues to work with the host railroads to ensure that our PTC
implementation is coordinated with their systems and in compliance with the
federally mandated deadline. VRE will monitor and respond appropriately to PTC
issues as we continue to implement the mandated system.
Monitor and Pursue Funding Opportunities for Corridor Improvements
VRE will continue to partner and support the efforts of the Commonwealth and host
railroads to facilitate funding to improve railroad capacity on both lines and at
Washington Union Terminal. VRE will also continue to work with the private sector
and Congress on potential public-private partnerships that could bring
improvements to the Virginia Railway Express system and host railroads.
Advocate for Commuter Benefits Equity
VRE will continue to advocate for legislation to make commuter benefits equal to
parking benefits in the Internal Revenue Code.
State
Seek Funding for Track Access Fees
VRE operates on the host railroads’ infrastructure. The host railroads are paid fees
according to long standing agreements that are periodically updated. VRE provides
significant capacity within the most congested highway corridors in Virginia (I-66, I-
2
95 and I-395) and is an important partner with the Commonwealth in helping
mitigate congestion in these critical highway corridors. From its inception, the
Commonwealth has provided funds for these track access fees in the state budget
using federal pass through funds. VRE will seek the continuation of funding from the
Commonwealth for track access. If VRE is unable to receive this funding there will be
significant budget ramifications.
Monitor for Legislative Opportunities
VRE will monitor legislation for opportunities to advance the following issues:

Amend the Virginia Code to allow VRE to receive interest on the Insurance
Trust Fund. While past practice allowed VRE to receive interest from these
funds, the 2011 Acts of Assembly reversed this policy. The proceeds are now
retained by the Commonwealth despite the fact that the Insurance Trust Fund
was primarily established by and is replenished with local funds.

Amend the Virginia Code to allow VRE to recoup a portion of the fines
imposed on fare evasion cases. Currently, when a conductor is required to
attend court, VRE must pay for their appearance in court as well as for
another conductor to be on the train. Cumulatively, this puts the financial
burden for prosecution on VRE while all fines are directed to the
Commonwealth Literary Fund.

Amend the Virginia Code to allow the Courts to increase fines for repeat
offenders travelling on VRE trains without a valid ticket.

Amend the Virginia Code to cap liability for commuter rail operations. The
existing cap enacted in a prior session excludes third party claims. VRE will
also seek exemption for both freight railroads and VRE from liability for
terrorism.

Amend Chapter 774 of the Virginia Code that increases the aggregate
awardable liability claim a rail passenger can make per incident (as requested
by the Virginia Trial Lawyers Association in 2006). Under the current Code,
the threshold (now $100,000) will be amended upward each year based on
the percentage change in the medical care component of the Consumer Price
Index (as published by the Bureau of Labor Statistics). The first increase took
place in January 2012. This policy could increase the existing $250 million
liability insurance threshold imposed by the Class 1 freight railroads. VRE
would advocate for the elimination of the annual index increase.
3
Virginia Railway Express
Operations Board
Resolution
8I-12-2013
Amendment to Approved 2014 Legislative Agenda
WHEREAS, the VRE Operations Board passed a resolution opposing SB 1210 and HB
2152 in the Virginia General Assembly in at the January 18, 2013 Operations Board
meeting; and
WHEREAS, HB 2152 was passed by the Virginia General Assembly in February 2013
and was approved by Governor Robert McDonnell in March 2013 to take effect on
July 1, 2014; and
WHEREAS, the legislation provides that for each year in which the state
contribution to the railway is greater than or equal to the highest contribution from
an individual jurisdiction, the jurisdictional subsidy used to determine vote weight
shall be recalculated to include the Commonwealth contributing an amount equal to
the highest contributing jurisdiction and the vote weight shall be recalculated to
provide the Chairman of the CTB or his designee the same weight as the highest
contributing jurisdiction, and
WHEREAS, the VRE Operations Board opposed the legislation last year because
there is no commitment from the Commonwealth to pay an annual subsidy, and
WHEREAS, the VRE Operations Board approved a 2014 VRE Legislative Agenda on
November 15, 2013 that did not include an item seeking changes to the weighted
voting legislation adopted in the 2013 Virginia General Assembly session, and
WHEREAS, the VRE Operations Board, upon further discussion, seeks to amend the
2014 Legislative Agenda to include an item seeking changes to the weighted voting
legislation.
4
NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board
recommends that the Commissions approve an amendment to the 2014 VRE
Legislative Agenda seeking changes to the weighted voting legislation and authorize
the Chief Executive Officer to actively pursue those changes.
Approved this 20th day of December 2013.
______________________________
Paul Smedberg
Chairman
_____________________________
John Cook
Secretary
5