MBTA
BOARD MEETING OF MAY 2, 2012
At the call of the Chair, a meeting of the Board of Directors of the
Massachusetts Bay Transportation Authority was held at Ten Park Plaza, 3 rd
Floor, MassDOT and MBTA Conference Room, Boston, Massachusetts, on
Wednesday, May 2, 2012 at 1:00 p.m.
There were present: Messrs. Jenkins, Alvaro and Whittle, the Misses
Levin and Loux, being all members of the Board.
Also in attendance were: the Secretary, Mr. Davey, the Acting General
Manager, Mr. Davis, and Messrs. Kelley and Kane, Special Counsel and Miss
Rollins, General Counsel to MassDOT and MBTA and Miss Fallon, Recording
Secretary to the Board.
The Chairman, Mr. Jenkins, presided.
Chairman Jenkins called the 1059th Open Meeting to order.
Board of Directors
John R. Jenkins, Chair • Ferdinand Alvaro, Jr. • Elizabeth Levin • Janice Loux • Andrew Whittle
Chairman Jenkins opened up public comment.
The first speaker was Alan Karen an MBTA rider and Canton town
meeting voter. Mr. Karen was interested in the Bus Contract for the Winthrop bus
and also the Ferry Service. He is in favor of the bus and ferry contracts. He also
is concerned with the Quincy Ferry’s stop at George’s Island and he would like
us to try to negotiate to have a separate service for the tourists.
The next speaker is Paul Regan, from the MBTA Advisory Board. Mr.
Regan stated that they met yesterday and approved the FY2013 budget but they
did state that they do not approve of using the MBTA Budgetary Process as a
tool for cutting service. He also submitted his findings in writing. Chairman
Jenkins asked to get together with Paul Regan and the General Manager.
The next speaker was Marilyn MacNab. Ms. MacNab commented fare
structure and service implementations to the seniors and disabled community.
She stated that there needs to be a better idea for the In Person Assessments
especially assessments that involve veterans. We need to have forward thinking
on how to support paratransit.
A full list of speakers is attached to the minutes.
Chairman Jenkins closed public comment period.
Next the General Manager gave his report on safety, employees, fiscal
responsibility, innovation, and employees. Mr. Davis also reported the passing of
Ben Haynes an active member of AACT and tireless activist. Mr. Davis also
reported the dedication of the legal conference room to William A. Mitchell along
with his portrait in the Legal office. He also gave out two accommodations to
Ebony Hall and Pauline Coyne for their actions to an emergency on the Red
Line. With their actions they saved a person’s life. (Attached)
The next item on the agenda was presented by Claudia Russell, Chief
Procurement Officer. Ms. Russell asked for the authorization to enter into a
contract with Sprague Energy Corporation for the supply of diesel for Bus
Operations as called for during an estimated three-year period, subject to prices
in effect at time of delivery, at a total cost not to exceed $59,091,109. Director
Levin asked what the sulfur content of the number one grade. Jeff Gonneville,
Director of Vehicle Engineering answered that it is fifteen parts per million for
grade one. Director Alvaro asked what the difference is between grades one and
two. Mr. Gonneville answered that the makeup of the fuel is chemically different
number one has better properties for an operational standpoint in the cold
weather. To run number two a series of test and they need to add additives to
make it operate up to standards. Director Loux asked how long tested the fuel.
Mr. Gonneville answered that it was tested for six months along with the data
taken from other transit authorities that have also switched. Director Levin asked
if they feel safe using this fuel. Mr. Gonneville stated that he feels comfortable
that this will work well with the equipment especially in the winter. Chairman
Jenkins asked if we were going to hedge the fuel. Mr. Davis stated that we will be
hedging where we have a 15% that runs through June 30th and we are looking at
the market to see when to lock in the price for diesel.
On motion, duly made and seconded, it was unanimously
VOTED: That the Acting General Manager and Rail and Transit
Administrator be, and hereby is, authorized to execute in the name of and
on behalf of the Authority, and in a form approved by General Counsel, a
Contract with Sprague Energy Corporation of Portsmouth, New Hampshire,
Massachusetts, for the supply of diesel fuel for Bus Operations as called
for during an estimated three-year period, subject to prices in effect at time
of delivery, at a total cost not to exceed $59,091,109; said company being
the lowest responsive and responsible bidder in response to an Invitation
for Sealed Bids
The next item on the agenda is the approval of the Ferry Service from
Hewitt’s Cove in Hingham to Rowes Wharf in Boston. This item was present by
Mimi Lannin, Deputy Director for Rail and Water Transportation. The contract is
to Nolan Associates, LLC d/b/a Boston Harbor Cruises for the period beginning in
May 16, 2012 through March 31, 2017 for an amount not to exceed $39,643,070.
Director Alvaro noted that there was only one bid for the contract and also how
there are a number of contracts with only one bidder. He encourages the MBTA
to find ways to have a more robust bidding process. He stated it is the best way
to get a competitive price by using the bidding process with more than one
bidder. He asked what the assumption is for the fuel price. Ms. Lannin stated that
the $3.75 is the price. Director Alvaro asked if they met the DBE requirement by
buying the fuel from them. He asked are we sacrificing price by using the DBE.
Mr. Davis stated that we are not sacrificing the price by using the DBE. The risk
will be mitigated by hedging. Director Levin asked about how many people per
day on the average ride the boats and the estimated fixed cost per trip. Ms.
Lannin replied that 2479 riders for FY2011. Mr. Davis stated that the net subsidy
is about $2.1 million or about $2 per passenger. Mr. Davis stated that they will
get the numbers to the Board. Chairman Jenkins stated to break even we would
have to add $2 to $3 dollars assuming you keep the same number of riders on
the service. Chairman Jenkins asked if we ever did a market look at the ferry
service in other cities and to what extend do they subsidize it. Director Whittle
asked how long has Nolan Associates been running the service and when did
they bring the high speed boats. Nolan has been running service since 1997 and
they brought the high speed vessels then.
On motion, duly made and seconded, it was unanimously
VOTED: That the Acting General Manager be, and he hereby is,
authorized in the name and on behalf of the Authority, to execute a
contract, in a form approved by the General Counsel, with Nolan
Associates, LLC d/b/a Boston Harbor Cruises for Hingham
Commuter Boat services from Hewitt’s Cove in Hingham to Rowes
Wharf in Boston for a five year period, commencing on May 16, 2012
through March 31, 2017 at a total cost not to exceed $39,643,070.
The next item on the agenda is the approval of the Ferry Service from
Charlestown Navy Yard to Long Wharf in Boston. This item was present by Mimi
Lannin, Deputy Director for Rail and Water Transportation. The contract is to
Nolan Associates, LLC d/b/a Boston Harbor Cruises for the period beginning in
May 16, 2012 through March 31, 2017 for an amount not to exceed $6,228,597.
Director Levin encourages the MBTA to reach out to the National Park Service or
Spaulding and any other groups in the area to bring up ridership numbers hold
the riders we have on the ferry service. Chairman Jenkins asked why the
contract is for five years. Mr. Davis answered that stated that we should
periodically go out there and do a solicitation so he wouldn’t recommend more
than five years and two years would be too short. We do have the option to
extend or cancel the contract. He stated that there is a 35% subsidy on this
contract. Director Alvaro asked if we will get a follow-up on the numbers from the
CTPS report and also he wanted to know if there are robust penalties in the
contract for non performance. Mr. Davis stated he will get them the numbers
once they are available from the CTPS report and
On motion, duly made and seconded, it was unanimously
VOTED: That the General Manager be, and he hereby is, authorized in the
name and on behalf of the Authority, to execute a contract, in a form
approved by the General Counsel, with Nolan Associates, LLC d/b/a Boston
Harbor Cruises for Commuter Boat services from Charlestown Navy Yard
to Long Wharf, Boston for a five year period, commencing on May 16, 2012
through March 31, 2017 at a total cost not to exceed $6,228,597.
The next item on the agenda presented by Melissa Dullea is the operating
agreement with Paul Revere transport for operation of the route 712/713 bus
service in Winthrop and East Boston for a four year period beginning July 1, 2012
with an amount not to exceed $7,177,494. She noted that the total cost of this
contract will be paid out of the operating budget. We save money by using this
contract compared to doing the work in house. The largest cost is bus operators
wages which the MBTA’s 12 percent higher than Paul Revere’s drivers. Director
Alvaro noted that this is another example of one bid contract with the previous
operator winning the contract. He asked about their performance record. Ms.
Dullea stated they are very good on performance and they exceed their DBE
goals. Director Levin asked what the justification about not doing the line in
house. Ms. Dullea stated we have taken on bus routes as a private carrier has
gone out of business. In this case this line has always been privately operated
and it also supports the local economy along with no desire to be taken on in
house. Director Loux stated that this is a terrific example of Labor Relations and
Local 25 working together noting a four year wage freezes is significant. She also
agrees that this also helps support the local economy. Director Whittle asked if
this was policy to take this on. Mr. Davis stated that there is no policy to take
these lines on in the future and noted we are eliminating one of the lines. The
lines need to be supported with ridership.
On motion, duly made and seconded, it was unanimously
VOTED: That the Acting General Manager be, and he hereby is,
authorized to execute an Operating Agreement with Paul Revere
Transportation LLC
for operation of Route 712/713 bus service in
Winthrop and East Boston for a four-year period beginning July 1, 2012, in
a form approved by Acting
General Counsel, for an estimated amount
not-to-exceed $7,177,494, for a period of time not to exceed four (4) years
of Notice to Proceed.
Director Whittle recused himself from the next item.
The next item on the agenda presented by Ed Hunter, Assistant General
Manager for Design and Construction, is on the Green Line Extension project.
The contract is for additional Design and Engineering Services on the Green Line
with Gilbane Building Company/HDR Engineering Inc. in an estimated sum not to
exceed $19,027,183 with duration of fifteen months from the date of Notice to
Proceed. This is the third amendment which will cover continuation of the
program management services, continuation of environmental, new starts, real
estate, survey, storm water strategies, historical review, public participation, 3d
modeling, noise & vibration and procurement support services, design
management coordination & oversight of the final design team. Director Alvaro
asked about the trade offs for vehicle maintenance and storage. Mr. Hunter
stated we took the funds and reallocated funds in this contract. Director Alvaro
asked how we would replenish the funds. Mr. Hunter stated that there would be
no increase to the budget we would just replenish the money. Director Levin
stated that the community path was not included originally because of the cost to
do the project. She stated since then she has seen the price go up and she
would like the path to be reconsidered. Mr. Hunter noted that with adjustments
there were some costly changes that brought up the number. Director Levin
would like everything that we need in the project along with a community path to
make is accessible to bikers and walkers. Director Alvaro asked if we have any
commitment from the Federal Government. Mr. Hunter stated that they said they
will be issuing an engineering PE which will issue a full funding agreement.
Director Loux stated we are doing this because the administration wants it done
and further it is a densely populated urban area starving for public transit options.
It is an area that is chocked by traffic, noise and air pollution and good
engineering services done in early stages are essential to making the projects
get built in a responsible manner. The Secretary added that this still is an
estimated budget and we must have the best engineering done in the beginning
so we can try to avoid problems down the line. He stated that the Board will
continually be updated throughout the whole process. Chairman Jenkins stated
that they are always given real numbers no matter what they are to make them
feel good.
On motion, duly made and seconded, with Director Whittle abstained and
Director Alvaro opposed it was;
VOTED: That the Acting General Manager be, and he 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, Amendment No. 3 to MBTA
Contract No. E22PS02, entitled “Green Line Extension Project – Program
Management, Construction Management and Preliminary Design,” with
Gilbane Building Company/HDR Engineering Inc., a Joint Venture for the
Green Line Extension Project for an estimated sum not to exceed
$19,027,183.00, subject to final negotiation and pre-audit, with a completion
date of fifteen (15) months from the date of Notice to Proceed.
The next item on the agenda also presented by Ed Hunter is the request
for approval for a contract with Progress Rail Corporation of rail for the
Knowledge Corridor in an amount not to exceed $14,699,062.44. The Amtrak
Vermonter route is along Massachusetts “Knowledge Corridor” to the
Connecticut River mainline between Springfield and East Northfield including rail
improvements in the Pioneer Valley in Western Massachusetts. Director Levin
asked if they feel comfortable with the $75 million. Mr. Hunter stated he does feel
comfortable with that number. The Secretary stated that this is a comprehensive
transportation program for the Commonwealth. He stated he was in Vermont and
there is a lot of excitement around this route and expanding out into Western
Massachusetts. Director Whittle asked why is the head hardened rail used. Mr.
Jody Ray stated that it is an MBTA standard rail that all of the Commuter Rail
uses the same specific. The head hardening reduces the amount of wear over
time. Director Loux asked if we use it other places. Mr. Ray stated they use it
everywhere.
On motion, duly made and seconded, it was unanimously
VOTED: That the Acting General Manager be, and he 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 General Counsel, a contract with Progress Rail
Services Corporation, for the manufacture and delivery of Fabricated
Continuously Welded Rail with Head Hardened Rail and Head Hardened
Running Rail, required to construct the Knowledge Corridor/Restore
Vermonter Project, at a total price not to exceed $14,699,062.44; said
company being the lowest responsive and responsible bidder in response
to an Invitation for Bids.
The final item on the agenda is the update on the Cleaning Contract by
Michael Turcotte, Assistant General Manager of Engineering and Maintenance
(E&M). Mr. Turcotte stated that they took a look at the old contracts and noted
that the old contracts were spread out in areas that didn’t make sense and they
didn’t have a performance based criteria. They thought that a modification in the
way it was bid needed to be done. They would like it to do by geography and
stations not just done by line. They also wanted to include green cleaning. They
did some extension on the existing contracts so they could go out and bid a
cleaning consultant to help create a performance base bid. Mr. Davis stated that
we are here to update the Board so we can get to the position to award a
Cleaning Contract. We wanted to brief the Board of the assumption that are in
the RFP and then bring a recommendation in June to the Board. Chairman
Jenkins asked that they reach out to each of the Board members and send out
the material and give them some time to read and give some feedback. Director
Loux asked the following questions. She said the memo identifies three issues
that are identified to justify new contract structure:
1. "current contracts contain no performance criteria
2. "stations were not being cleaned in "an effective manner"
3. "bidding by line is not cost effective"
4. Existing contracts prescribe staffing levels and MBTA authorized
cleaning materials"
She stated that Mike Turcotte said in his memo that "E&M" reviewed the current
contracts and asked if E&M may have done some type of formal review and if so
why didn’t they provide any supporting documentation to support these
conclusions with data or analysis. Mr. Turcotte answered that Core Management
Services did the review as well as an internal review was done by E&M. She
asked what he meant by stations not being cleaned in an effective manner. Mr.
Turcotte stated that it is hard to measure what is being cleaned and what isn’t
being cleaned. There is no method in place that states what needs to be cleaned
and what areas. Director Loux asked how he measures cost effectiveness. Mr.
Turcotte answered that a station would have multiple contracts with different
cleaning companies. Chairman Jenkins clarified that having three different
companies clean a station is not as cost effective as just having one company
clean the entire station. Mr. Turcotte stated that the geography piece was to deal
with the travel costs that were incurred due to the traveling of companies to the
different stations. Director Loux asked why it is a bad thing to prescribe staffing
levels or cleaning materials. Mr. Turcotte stated that the he looked to the
professionals to do the items that were best for the contract. Mr. Davis noted that
they had done a staffing plan as well and noted that the current RFP that is out
there includes all the current staffing. Director Loux asked if Mr. Turcotte was
aware that every time the T does a customer service survey - station cleanliness
receives some of the highest ratings from our customers. Mr. Turcotte stated that
he was not aware of the surveys. Director Loux also asked if he has cost out bus
stop snow removal and if he had estimates. Mr. Turcotte stated that they have
but it was not provided to the Board. Director Loux asked if the E&M department
could afford the proposed additional work within the department budget. Mr.
Turcotte stated that they don’t have the workforce to handle it on a regular basis
even though they currently do the work. Director Loux asked that currently your
department has responsibility for snow removals at bus stops- are you going to
reduce your budget to offset any increases in the contractor’s responsibilities. Mr.
Turcotte stated that they will not reduce their budget but they will still try to clear
all 8500 bus stops. In relating to the performance criteria Director Loux asked
how do you how do you measure "a quality success percentage. Mr. Turcotte
stated that the company they hired created a frequency where they can measure
the tasks and frequency of the tasks. They will also have a web based quality
assurance tool. Director Loux asked what the objective standards are. He stated
that the requirements are based in system where they use the same
management tools. Director Loux asked who will be supervising the contracts.
Mr. Turcotte stated that the contracts will be supervised by the superintendent of
the station cleaning services. Director Loux asked how many T personnel are
required for cleaning contract administration. Mr. Turcotte answered that they will
be posting two positions and they currently have three staff. They have four
areas so they will have one for each area and a superintendent to oversee all
four areas. Director asked if there was an additional cost required for
administering this new contract structure. Mr. Turcotte stated that he didn’t think
there was any additional cost but he would find out for sure and get back to the
Board. Director Loux asked about operations personnel staffing the stations yet
E&M is administering the contracts – which department is responsible for
contract adherence documentation. Mr. Turcotte answered that E&M will be
responsible for contract adherence. Director Loux asked about the procurement
process. She stated that the memorandum was not clear about your objectives
and asked what are your objectives, are we trying to improve the quality of
cleaning, get a better price, or both and have you identified any budget impacts.
Mr. Turcotte stated we are trying to improve both and we have identified
projected budget savings and he will include them in future information. Director
Loux asked why each time you evaluate bids, you disqualified a majority of the
bidders. She stated the last Invitation For Bid (IFB) resulted in 6 bids - you
disqualified 4. Mr. Turcotte stated that they were disqualified because of the
pass/fail criteria. They bid phase 1 and they reviewed all bids based on a
pass/fail bases if all the information wasn’t included then you fail. Director Loux
asked if some of the disqualified bidders currently contractors of the MBTA. Mr.
Turcotte responded that they were some current contractors that were
disqualified. Director Loux asked why is disqualifying bidders and eliminating
completion a good thing for the T, especially when they have been doing a good
job. Mr. Turcotte said that the pass/fail criterion was needed. They took extra
steps in which the latest bid had no vendors passing where they brought them in
to explain exactly what they are looking for. Director Loux stated that the
document is lacking information and she doesn’t understand how eliminating
bidders 2/3 of the bidders will result in better contract prices and cleaner stations.
Director Levin stated she doesn’t understand why the snow shoveling and
landscaping they are together and she feels it is important opportunity to give this
work to the smaller businesses that fuel our economy.
Chairman Jenkins announced that we will reconvene into the MassDOT meeting.
We will then go into MBTA Executive Session. After Executive Session we will
reopen to into MBTA open session to vote.
VOTED: To adjourn the 1059th Open Meeting.
The Chairman opened up the meeting after MBTA Executive Session to approve
the Police Associations Collective Bargaining Agreement.
This item is presented by Owen Kane. Mr. Kane stated that the contract is
for July 2010 to July 30, 2014. Director Loux requested to make a motion
because they have already heard this presentation twice.
On motion, duly made and seconded, it was unanimously
VOTED: That the Acting General Manager be, and he hereby is,
authorized to enter into a collectively bargained Agreement in the name
and on behalf of the Authority, in the form of a Memorandum of
Understanding between the Massachusetts Bay Transportation Authority
and the MBTA Police Association relative to the terms and conditions of
employment for a period commencing July 1, 2010, through and including
June 30, 2014 and the General Manager is authorized to execute said
Memorandum of Understanding in the name and on behalf of the Authority
upon ratification by the MBTA Police Association membership. Copy of
said Memorandum of Understanding in the form submitted is hereby
ordered filed with the records of the meeting.
On motion, duly made and seconded, it was unanimously
VOTED: Adjourned.
The meeting was adjourned.
DOCUMENTS RELIED ON AT THE MEETING
General Manager’s Report
Staff Summary on the Bus Diesel Fuel
Staff Summaries on the Ferry Service for Hingham and Charlestown
Staff Summary on Green line Extension Project
Staff Summary on the Purchase of Rail for the Knowledge Corridor
Cleaning Contract Memo
Public letters to the Board