MINUTES MassDOT BOARD MEETING OF SEPTEMBER 12, 2012 At the call of the Chair, a Meeting of the Board of Directors of the Massachusetts Department of Transportation was held at the Aldermanic Chamber, Somerville City Hall, 93 Highland Avenue, Somerville, MA on Wednesday, September 12, 2012. There were present: Messrs. Jenkins, Davey, Alvaro, Whittle, Bonfiglio, Macdonald and Miss Loux, being the Board of Directors of the Massachusetts Department of Transportation. Also present were Acting General Manager and Rail and Transit Administrator Davis, Rachael Rollins, MassDOT and MBTA General Counsel, Frank DePaola, Administrator of the Highway Division, Rachel Kaprielian, Administrator of the RMV Division, Christopher Willenborg, Administrator of the Aeronautics Division, Owen Kane, Special Counsel to the Board, and Paula Fallon, Recording Secretary. The Chairman, Mr. Jenkins, presided. Board of Directors Chairman Jenkins called the Open Meeting to Order at 1:42 p.m. and presented the order of business. The Chairman announced this is the first meeting of the reconstituted Board of Directors of MassDOT. He welcomed the newest members Alan Macdonald and Joseph Bonfiglio. He began by asking the two members to give a little background about them. Director Macdonald stated that his career has been in public policy issues for the last 23 years with the Massachusetts Business Roundtable where he also has served on a number of committees dealing with transportation infrastructure. He appreciates the chance to serve on the board. Next Director Bonfiglio gave a brief description on his background. He stated that he is the Business Manager of the Massachusetts and Northern New England Laborers’ District Council where he represents many construction workers who are involved with in manual and semiskilled labor. They also represent several people who work for various municipalities, cities and towns in public sector but their roots are clearly with construction. He noted that they deal often with MassDOT on various road and bridge projects and the MBTA. He has been affiliated with the organization for over 30 years. Chairman Jenkins also welcomed back some of the other members and the other new Board member Secretary Davey. He also thanked Director Liz Levin for her service on the Boards over the last three years. Chairman Jenkins also thanked Mayor Curtatone for hosting us today in the beautiful Aldermanic Chambers at Somerville City Hall. The 2 Chairman also noted that Mayor Scanlon from Beverly and Representative Denise Provost was there as well. Chairman Jenkins asked Mayor Curtatone to come forward to make the first comments. Mayor Curtatone began by thanking the Board for coming to Somerville and for their efforts to show transparency to connect with the constituents in every region of the Commonwealth. He noted that it was very important that the Board was meeting in Somerville today because of the item on the agenda to authorize funds to advance a final design and preliminary engineering for the Green Line Extension. He stated the vote will have tremendous impact not just on Somerville but Cambridge, Medford and the Commonwealth as a whole. This project will provide Somerville and the Commonwealth with economic development worthy of the demonstrations that are shared in our commitment that we signed to work together back in July. The Green Line Extension in the Union Square and the Washington Street Stations are near prime transit-oriented land which is supported and ready to develop and could generate up to 8,000 new jobs. The Mayor ended with his appreciation to Secretary Davey, the Governor, noting that Somerville has enjoyed exemplary cooperation not only from MBCR but from the MBTA, MassHighway, and the entire state transportation family. Next Chairman Jenkins asked Mayor Scanlon to come up for comment. The Mayor read a brief letter regarding the MBTA Commuter Rail Garage that 3 will be built in Beverly. The Mayor stated that he is certain that this garage will be highly successful from day one and thus reduce the number of cars commuting all the way into Boston from the North Shore. Therefore he strongly recommends the Board to vote in favor of the item authorizing the ISA amendment between MassDOT and MBTA contract number CMR-62 entitled “Beverly Depot Parking Garage”. Mayor Scanlon closed his comments proudly noting that the City of Beverly has committed $500,000 for the finance of this important project. Next Representative Provost came up to say a few words. Representative Provost thanked the Board for bringing the meeting to Somerville. She thanked the Board, MassDOT and the Commonwealth for sticking with the Green Line Extension project through thick and thin and she encourages the Board to vote in favor of the item on the Green Line Extension on the agenda today. Chairman Jenkins opened up the meeting for public comment. The first speaker was Karen Wepsic from the MBTA Rider Oversight Committee. Ms. Wepsic wanted to express her support for the item on the agenda for solar photovoltaic system and she hopes the MBTA continues with the alternate energy process. She also noted that she is a part of the Design Advisory Group for the Casey Overpass in Jamaica Plain and she stated that the process is going very, very well. 4 The next speaker is Ken Krause a resident of Medford. Mr. Kraus was there to speak in favor of the Green Line Extension item on the agenda. The next speaker on the agenda is Heather Carito of AMSNA. Ms. Carito came because she stated that she has great concerns on how the process for the Casey Overpass has been proceeding. She noted that in the beginning there were a number of bridge designs and she wasn’t sure how those designs got eliminated. She asked that MassDOT complete a thorough analysis before going forward. The next speaker is Wig Zamore, from STEP. Mr. Zamore asked that the Board vote unanimously on the Green Line Extension item on the agenda. The next speaker is Michael Epp from the Casey Work Group. Mr. Epp stated that he feels the Casey Overpass process has been transparent, respectful, professional, rigorous, based on facts, and I support the at-grade solution. The next speaker is Todd Consentino from the Casey Overpass Design Advisory Group. Mr. Consentino also supports the process so far for the Casey Overpass and agrees that it has been transparent and noted that the design team has been very responsive to the Community input and he too supports the at-grade crossing. The next speaker is Lee Auspitz, a Somerville resident. Mr. Auspitz is a strong supporter of the Green Line. He would like the issue of the Medford Hillside issue to be thoroughly looked at. 5 The next speaker is Marilyn MacNab. Ms. MacNab thanked former Director Levin for her service and her dedicated work over the past three years when it came to examining the paratransit system. The next speaker is Lynn Weissman, Friends of the Community Path. Ms. Weissman stated that their mission is to connect the two miles stretch to reach the Minuteman which is a 23 miles of path network along with the Charles River path which is another 23 miles of path along the Green Line Extension. The next speaker is Ellen Reisner from STEP. Ms. Reisner is also there in support of the Green Line Extension item on the agenda today. The next speaker on the agenda is Sarah Freeman, WAG/DAG, and Arborway Commission. Ms. Freeman believes that the process so far for the Casey Overpass has been thorough and they are thankful for everyone involved and she believes the at grade solution addresses the long-term problems. The next speaker is Marguerite Rosenthal, from Boston BDS Coalition. Ms. Rosenthal is concerned with the contracting process of the Commuter Rail and specifically with Veolia because she said they have been cited worldwide for being a human rights violator. She also is in favor of getting rid of the overpass at Forest Hills. The next speaker is Jeffrey Ferris from Bridging Forest Hills. Mr. Ferris believes that eliminating the overpass will make is worse for cars and bikers as well as regional traffic and pedestrians. He believes the process hasn’t been 6 transparent and he noted that he too would like to know why the bridge options were eliminated. The next speaker is Peter Stidman from Boston Cyclist Union. Mr. Stidman commented on his support for the bike path to go along with the Green Line Extension and he also noted that the process with the Casey Overpass has been the most involved and informative process that he has seen and he urges the Board to look at the public comments when deciding on the Casey Overpass. Chairman Jenkins closed public comment. Next Secretary gave his report and he also thanked Mayor Curtatone for hosting the MassDOT Board. The Secretary began by noting that today’s meeting of the Board of Directors marks a new chapter in the MassDOT era as we continue build on the good work of Transportation Reform and look forward to tackling new challenges. To that effect, this newly constituted Board of Directors will consist of seven members, which includes the Secretary and CEO as a full voting member of the Board. The Board will have a new set of responsibilities and will be comprised of members that represent an even broader set of backgrounds and viewpoints. From here, the Board will turn its focus more to the development of policy as we continue to make progress on our many successes in the past few years. 7 He ended his opening remarks thanking everyone who is helping us take these steps forward. The Secretary also gave a special thank you to former Director Liz Levin for her service. He noted that he had asked and she has agreed to remain as an advisor to him, this board and to the Governor. (Full Report Attached) Next Frank DePaola, Administrator of Mass Highway gave his report. Mr. DePaola began his report by giving a brief overview for the new members. He went over the makeup of the division noting they have 3,200 positions within Highway who are responsible for 9,500 lane miles over 5000 bridges with 1,500 traffic signals and also 25 miles of highway tunnels. He noted that we have the largest highway tunnel system in the United States. Mr. DePaola announced that this month marks the end of the fourth year of our Accelerated Bridge Program and so far the program has been meeting all the requirements and metrics that were set out for the original legislation. He stated that currently we are inviting proposals for both the Longfellow Bridge over the Charles River and the Whittier Bridge, which is Route 95 over the Merrimack River up between Amesbury and Newburyport. Chairman Jenkins took this time to note that the Board will be scheduling a half-day session to update the new Board Members and to set the stage as we move forward. 8 Next Rachael Kaprielian, Registrar of the Registry of Motor Vehicles gave her report. She began by giving a brief background on her tenure at the Registry along with a background of the agency. The agency serves virtually 4.6 million licensed drivers, 2 million phone calls a year in the phone center, 30 branches stretch from North Adams to South Yarmouth and they have approximately 780 staff and about a billion dollars every year in revenue the agency brings in. They have about 3.3 million branch visits and 2.9 million online visits. The Registrar talked about the dashboard and noted that wait times are up this month but they are continually working on getting people out of the lines and get online. She noted that the summer time is typically their busiest time. She noted that they do have interns but as they start to level off, the branch traffic tends to go up the last week of August. She noted that the wait times are on the high side of 27 minutes and three seconds. She stated that the highest wait times are at the busiest locations. She also noted that the call wait times are about 24 minutes. They are working on better automating the phone system through some upgrades where customers will be able to self help. The Registrar also noted that this is the season for school bus inspections. They inspect school buses three times a year August/September, December/January, and April/May. Next the Registrar gave an update on ALARS; she stated that the management team had begun negotiations with Deloitte Consulting, the winning vendor she announced last month. The team is also getting support from the appropriate MassDOT departments to help make sure the project is successful. 9 Once the negotiations are complete the contract will come to the Board for approval. Director Alvaro asked if at anytime we can project a crossover on online transactions and branch visits. The Registrar noted that a lot of the branch visits are more than one transaction, so a visit and a transaction cannot be totally aligned but she thinks that we will be seeing more crossovers just in a number of transactions. Chairman Jenkins noted that two Administrators are not here today. Chris Willenborg and Jonathan Davis. Mr. Davis has submitted his report for the record. Next on the agenda is the update on the MBTA Station Cleaning contract presented by Mike Turcotte, Assistant General Manager for Engineering and Maintenance. Mr. Turcotte gave the Board a brief recap of the contract objectives as well as the bid process. He noted that the cleaning contract objectives first and foremost were to establish performance-based criteria to increase the cleanliness of our stations and facilities. The next objective was to reduce costs and increase safety by requiring state of the art cleaning equipment. We want to reduce costs and increase cleaning efficiency by modifying the current line-based approach to a geographic approach. We want to reduce the number of cleaning contracts by combining all stations and facilities into no more than four areas -- a maximum of four contracts -- to reduce management costs as well as gain efficiencies. We want to introduce green cleaning to the MBTA. We want to increase the cleanliness and safety of the stations by including landscaping and 10 snow removal in these requirements; increase the level of management provided by the contractor by requiring contractor management qualifications. And lastly, we want to increase the contractor's employee satisfaction and productivity by requiring significant training for the cleaning contract employees. Mr. Turcotte stated it is a two-phase process. First phase is basically a list of 29 items that each contractor has to answer and supply their information on so that we know they understand the contract, they're qualified to bid the contract, they understand what we're asking, and that's a pass/fail criteria. If they meet those criteria and pass all items, they move on to phase two which is simply low bid at that point. So their intent is to maintain that two phase process. He noted that the sticking point has been staffing. What the MBTA has done in the past as far as bidding goes is simply say, that is how many people you need, here's the cleaning materials, and so on. They gave us a price and there were never any performance-based criteria. So with the addition of the performance-based criteria, we originally went out to bid and said we're not putting any criteria on personnel other than to say 50 percent of however many folks you contract -- are going to supply -- 50 percent of them have to be full-time. We did not go through with that bid. We did a second time stating that all contractors have to keep the same amount of employees that we have today. That bid did not process through. So they are at a point where they are coming to the Board asking for guidance and direction on the personnel piece of the 11 contract bid. Director Alvaro noted that Mr. Turcotte has come to them in the past about requiring a staffing level and they were told to not do it. He noted that we have gotten a lot more attractive bids when we didn’t require an amount. Mr. Turcotte answered that if they don’t when the transition happens if they don’t require this amount it could affect the safety and cleanliness of the station. Director Alvaro asked if the contract costs will decline in years two through five. Mr. Turcotte stated that is what they expect. Director Loux noted that last time she asked for an executive summary and she stated that all she has received is reconfigured words. She asked how can things be safer by cutting workers and she noted that this bid has been a mess from the start. She stated that she wanted a proposal in front of her that she could plan to support but instead what she was given does not give her any information. She noted that if we are going to take on more work and decrease staff then her opinion is that this isn’t going to work. Chairman Jenkins stated that when it comes to year one it is a little problematic but he noted that we have given the bidders the opportunity to go out in years 2 through 5 and be more creative and we have metrics to determine whether they’ve met the cleanliness and safety criteria that we have placed on them in year 2 through 5. Director Alvaro stated that he could agree with the Chairman’s view even though he doesn’t fully agree as long as we get the benefits of efficiencies in subsequent years, he will agree to the staffing levels for year one. Secretary Davey commended Mike and his staff for trying to think creatively and differently. He noted that what we are hearing from the Board is 12 the best scenario would be trying to strike a balance between what is potential job loss but at the same time trying to make sure the taxpayer, our customer, gets the best value and a clean and safe station. He also noted that his opinion is they need better equipment which the contractors should get for them. He also noted that if the scope is growing with snowplowing there may be an opportunity here to minimize any kind of impacts on employees but get more work done in these companies. Mr. Turcotte stated that they probably won’t be back before the Board until at least December. Chairman Jenkins stated that the next time he sees them they will have a contract. The next item on the agenda presented by Andrew Brennan, Director of Environmental Affairs, was seeking approval to enter into a twenty-year power purchase and site license agreement with Gehrlicher Solar America for the purpose of designing, installing, maintaining a solar photovoltaic or PV system at the Readville Yard 5 in Dedham as well as the Wonderland Garage in Revere. Director Alvaro asked if production is higher or lower we either pay more money or pay less money. Mr. Brennan answered that there is a guaranteed minimum they will produce, if production goes lower, then Gehrlicher will pay us that cost so we will always get that $48,900 and the performance risk is on the company. Director Whittle asked how quickly will this come online. Mr. Brennan answered that they will be generating electricity a year from the signing of the contract. Chairman Jenkins asked why it was for 20 years. Mr. Brennan stated that 13 Gehrlicher really needs to have 20 years to get the capital buyback from them putting the money up front. On motion duly made and seconded, it was unanimously; VOTED: That the General Manager be and he hereby is, authorized in the name of and on behalf of the Authority, and in a form approved by the General Counsel to enter into a twenty (20) year Power Purchase and Site License Agreement (PPAs) with Gehrlicher Solar America Corporation its successors or assigns to plan, finance, design, engineer, procure, permit, construct, install, interconnect, commission, own and operate, maintain, monitor, decommission, and remove a solar photovoltaic (PV) System at Readville Yard 5 in Dedham and at Wonderland Garage in Revere. Whereby the MBTA agrees to purchase all of the electricity generated by the solar PV Array at these two facilities estimated to provide a combined net present cost savings of nine hundred seventy-eight thousand dollars ($978,000.00) over the term of the PPAs. Said Power Purchase and Site License Agreements and any other necessary instruments and documents shall contain such other terms and conditions as determined to be necessary and/or advisable by the General Counsel. Chairman Jenkins noted that the next three items on the agenda will be presented by Ed Hunter, Assistant General Manager for the MBTA Design and Construction. The next item on the agenda is a request for the Board to approve and authorize the Acting General Manager to execute MBTA Contract number G67CN02 entitled, “Fitchburg Commuter Rail Improvement Project, Fitchburg Line Bridges” with J. F. White Contracting Company, Inc. for a sum not to exceed $16,256,925 with a completion date of 40 months from the date of the Notice to Proceed. Director Macdonald noted that he is favor but he wanted to know if the two high bidders A. A. Will and CARDI Corp. have ever done work for us before. 14 Mr. Hunter answered that A. A. Will is currently doing three bridges for us down in the Medford area and noted that CARDI has not done work for us. Mr. Macdonald wanted to understand what they may have seen that made them bid substantially higher. Mr. Hunter answered that many of the bidders are firms we have done work within the past and they are more familiar with our limitations of operations and they feel a bit more comfortable. He noted CARDI has not broken into a lot of work with the MBTA but they are an excellent company. On motion duly made and seconded; it was unanimously VOTED: That the Acting General Manager and Rail & Transit Administrator be, and hereby is, authorized to execute in the name of and on behalf of the Authority, subject to the approval of the Massachusetts Department of Transportation (MassDOT) and in a form approved by General Counsel, a contract with J. F. White Contracting Company for MBTA Contract No. G67CN02 entitled “Fitchburg Commuter Rail Improvement Project, Fitchburg Line Bridges” in the amount of $16,256,925.00 with a completion date of December 31, 2015. The next item on the agenda is the Beverly Depot Garage. Mr. Hunter asked the Board to approve and authorize the Acting General Manager to execute an owner, MBTA, construction manager agreement, MBTA Contract No. 15 CMR-62 entitled “Beverly Depot Parking Garage, Beverly, MA” with Suffolk Construction Company , Inc. for a sum not to exceed $24,899,804 with a completion date of 15 months from the date of the notice to proceed. In addition it is recommended that the Board award and authorize the Secretary/CEO to execute an Intergovernmental Service Agreement amendment in the amount of $21,748,099 to support the contract between the MBTA and Suffolk Construction Company in support of the Beverly Depot Parking Garage. Director Bonfiglio asked as this project unfolds would it become a candidate for the photovoltaic systems that they heard about earlier. Mr. Hunter noted that the station already has solar as part of the design. Secretary Davey noted that the staff summary was transparent; it gives them all details and its uncharted territory for the Board so he felt very educated by the staff summary. He suggested sending it out as an example. On motion, duly made and seconded it was unanimously; VOTED: That the Secretary/CEO be, and hereby is, authorized to execute, in the name and on behalf of the Massachusetts Department of Transportation and in a form approved by the General Counsel, the execution of an ISA amendment between MassDOT and the MBTA for a value of $21,748,099.00 to support MBTA Contract No. CMR-62, entitled "Beverly Depot Parking Garage, Beverly, Massachusetts" with Suffolk Construction Company, Inc. FURTHUR VOTED: That the Acting General Manager and Rail & Transit Administrator be and hereby is, authorized to execute in the name and on behalf of the Authority, subject to the approval of the Massachusetts Department of Transportation (MassDOT) and in a form approved by the General Counsel, Owner (MBTA) - Construction Manager Agreement for MBTA Contract No. CMR-62, entitled 16 “Beverly Depot Parking Garage, Beverly, Massachusetts” with Suffolk Construction Company, Inc. for a pre-construction services and guaranteed maximum price construction contracts, awarded pursuant to lawfully conducted public bidding process. Such construction contracts may take the form, as approved by the General Counsel, of guaranteed maximum price (GMP) contracts, as described in the Staff Summary for a sum not to exceed $24,899,804 to be completed within fifteen (15) months of the date of the notice to proceed. The next item on the agenda presented by Mary Ainsley is the request for the Board to approve and authorize the Acting General Manger to award the MBTA Contract No. E22PS04, entitled “Green Line Extension – Advance Preliminary/Final Design Engineering Services with AECOM Technical Services Inc. and HNTB, a Joint Venture, for an estimated sum not to exceed $44,822,961 with duration of eighteen months from the notice to proceed. In addition the staff summary requests approval from the Board to provide $45,914,651 to the MBTA via an amendment to an existing MassDOT/MBTA Intergovernmental Service Agreement to support the cost of the MBTA contract E22PS04. Secretary Davey noted that this project is critical for Somerville and one that we in the Administration are supportive of, and he believes the MBTA needs to deal with a long-term financing challenge for both DOT and the MBTA and we have been clear with local leaders in that regard, that at this point we still have not identified a full budget for this entire project. We have committed to financing that we are calling phases one and two which means some bridge work will start next month and the realignment of Lechmere Station, Union Square and Washington Street. He said it is important to note that without a long-term financing piece of the 17 MBTA in place the federal government will not contribute or participate in this project, which would be very difficult, then, for the State to afford. We would be leaving almost a half a billion dollars on the table as a result of not being able to demonstrate that the MBTA’s long-term fiscal challenge is completely unrelated to the Green Line Extension. He noted that he supports moving this piece forward with the caveat that we all need to know that we have a long-term challenge to get through. Director Alvaro thinks this is a terrific project that will create jobs and many benefits for the community but as we sit here today we still do not know whether we have the funding to execute this project and the incremental strain it will place on the MBTA operating budget. He ended by saying unless we have fixed transportation financing, we shouldn’t be thinking about projects like this one. On motion, duly made and seconded with Director Alvaro opposing it was; VOTED: That the Secretary/CEO be, and hereby is, authorized to execute, in the name and on behalf of the Massachusetts Department of Transportation and in a form approved by the General Counsel, the execution of an ISA amendment between MassDOT and the MBTA for a value of $45,914,651.00 to support MBTA Contract No. E22PS04. FURTHER VOTED: That the Acting General Manager and Rail & Transit Administrator be, and hereby is, authorized to execute in the name of and on behalf of the Authority, subject to the approval of the Massachusetts Department of Transportation (MassDOT) and in a form approved by General Counsel, a contract with AECOM Technical Services, Inc. and HNTB Corporation, a Joint Venture for MBTA Contract No. E22PS04 entitled "Green Line Extension - Advance Preliminary/Final Design Engineering Services," for an estimated sum not to exceed $44,822,961.00, subject to final negotiation and pre-audit, with a duration of eighteen (18) months from the date of the Notice to Proceed. 18 Chairman Jenkins noted that there is one more item to take up in open session. He would like to discuss the Commuter Rail Procurement. He noted that the agenda stated that they will do in executive session there are some aspects that can be discussed in open session. Secretary Davey recused himself from the discussion. Mr. Brad Kesler, Director of Commuter Rail Operations gave the update. Mr. Kesler began by starting from the letters of interest that went out back on January 12, 2011. There were approximately 25 to 26 responses and from there the RFQ was issued on May 25th , 2012. The RFQ’s were received on July 26, 2012 and on September 5, 2012 the short list was announced. The short list consisted of only two teams who submitted. They were a bit concerned when they first heard that there were only two teams so they reached out to KPMG to do some market research and they talked to the industry. At least five large companies are a member of the two partnerships. One was the incumbent MBCR and the other bidder is Keolis Commuter Service which is a partnership between Keolis and SSDI. They heard back from market outreach where AMTRAK stated that they were refocusing their core business on intercity traffic and not commuter contracts. He also noted that a lot of teams don’t have the expertise on their own to tackle the entire MBTA contract that would have. Some European firm’s interest lacked because of the decision that there wouldn’t be any fare set. Mr. Jenkins asked how many were viable out of the 25 that submitted letters of interest. Mr. Kesler stated that there was about a dozen. 19 Chairman Jenkins noted that the two is misleading because there are five companies bidding and combining their sources so in reality it was 5 out of 12 that decided to bid. Chairman Jenkins asked about the drafting of the RFP and upcoming dates. Mr. Kesler answered that the RFP is scheduled to be released on October 4, 2012 and then the actual RFP agreement will be released on November 9, 2012 with responses due on February 21, 2013. He also noted that there is a planned DBE outreach scheduled for September 13, 2012. Mr. Kesler ended his presentation. On motion, duly made and seconded it was unanimously; VOTED: to adjourn. Documents relied on in meeting: Massachusetts Department of Transportation Secretary’s Report Staff Summaries for items 9-13 Letters Given for the Record Diversity DBE Outreach for Commuter Rail Flyer 20