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Board of Directors Information Summary

Agenda Item A

Date March 14, 2012 Subject Minutes from the February 16, 2012 Valley Metro RPTA Board of Directors Meeting Summary The February 16, 2012 Valley Metro RPTA Board of Directors meeting minutes are presented for review and approval. Fiscal Impact None Considerations None Prior Committee Action None Recommendation It is recommended that the Board of Directors approve the February 16, 2012 Valley Metro RPTA Board of Directors meeting minutes. Contact Person Steve Banta Chief Executive Officer Attachments February 16, 2012 Minutes

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Minutes of the Valley Metro RPTA Board of Directors

Thursday, February 16, 2012 12:45 p.m.

Meeting Participants Vice Mayor Ron Aames, City of Peoria, Chair Vice Mayor Scott Somers, City of Mesa, Vice Chair Councilmember Trinity Donovan, City of Chandler, Treasurer Councilmember Shana Ellis, City of Tempe Mayor Greg Stanton, City of Phoenix Councilmember Jim McDonald, City of Avondale Councilmember Eric Orsborn, Town of Buckeye Vice Mayor Jenn Daniels, Town of Gilbert (via telephone) Councilmember Joe Pizzillo, City of Goodyear Councilmember Bob Littlefield, City of Scottsdale Councilmember Rui Pereira, Town of Wickenburg (via telephone) Mayor Lana Mook, City of El Mirage Vice Mayor Kathie Farr, City of Tolleson Not Present Mayor Elaine Scruggs, City of Glendale Supervisor Max Wilson, Maricopa County Mayor Sharon Wolcott, City of Surprise Chair Ron Aames said today is the February 16, 2012 meeting of the Valley Metro RPTA, Regional Public Transportation Authority. And I'm Ron Aames. I'm Peoria councilmember and vice mayor in my second term. And this year I will be the chair of the RPTA. And to my left is Scott Somers, vice mayor of city of Mesa, and he's going to be the vice chair. And to my right is Trinity Donovan, councilmember of city of Chandler and she's going to be the treasurer. And I welcome everyone else here on the Board who is here. We do have a quorum so I'm starting. My next item was to introduce Mayor Greg Stanton who is going to represent Phoenix on the Board, but he is not here yet. So if he comes I will do that. And also Shana Ellis, the past chair of the RPTA, is going to be a little late. And when she comes she will get some recognition for her having been the chair the previous year. And we have a little kind of a trophy for her. A lot of this was about that.

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Chair Aames said we'll start with public comment. And I do have one card from Gary Gelzer. And that's an opportunity to present to the Board. And if you would give your name and I think you know, Gary, that you have three minutes to talk and you can speak on any general subject. If you want to speak about a particular item, it's preferred that you wait until then, but you may also speak about that now if you so choose. Mr. Gelzer said good afternoon. My name is Gary Gelzer. I'm a councilman from the city of Goodyear. Just to give you a little bit of background, in my previous life I was a transportation officer for the Chicago Northwestern Railroad and I helped manage the commuter service of heavy rail and commuter service throughout the Chicago area. I'm here to address you concerning the schedules of express Route 562 and the express Route 563, one of which originates in Buckeye, stops in Goodyear, and the second originates in Goodyear and heads directly downtown to Phoenix. We have since the change has been instituted, which was on January 23rd, we have received a fair amount of concern from the riders that have addressed the city concerning the schedule of the four buses. And what I would request the staff to do is survey the riders at this point in time because I understand the bus schedule really would change effective July 1. But the concern of the riders are that the last bus leaving downtown Phoenix the outbound route is standing room only and the earlier buses are running empty and we are having similar issues with the buses that are coming in. So our biggest concern is you have capital assets that are -- some are being underutilized and some are being over utilized. And we think a better allocation of the times would be more appropriate and we would like that done sooner rather than later. Thank you very much. Chair Aames said thank you. Bryan, you're going to think about that; right? Mr. Jungwirth said yes, sir, Mr. Chairman, we'll get with our staff on that immediately. 2. Consent Agenda Chair Aames said next on the agenda is the consent agenda and I'm calling on Bryan Jungwirth to provide background information on the items on the consent agenda. Mr. Jungwirth said thank you, Mr. Chairman, members of the board. The consent agenda today is Items A through H, and Items A through G have been approved by the TMC. Item H was the one that was added for the diesel system fueling system repairs. And it was an emergency procurement that I initiated with our operations staff because we found some leaking diesel fuel out of the tanks. And according to EPA you're basically obliged to fix that immediately. So we went ahead and contracted with SJ Anderson for $87,882. So this item was not a TMC item but I am asking for your ratification on that.

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I want to go back to item 2 C, which is the contract award for the closed circuit television cameras. And when we issued this procurement we omitted the Davis Bacon requirements that apply to this because we thought it was more of a plug-and-play kind of thing like -- we didn't think there was construction involved because all the closed circuit TV cameras, they were all prewired and so forth, so it was a real easy deal. We found out subsequently that it is Davis Bacon required so we have a few options. We could go back out and rebid it, but the timing of that, the federal government, the FTA wants us to try to get this project done by June 30th. So what we're proposing now is changing the funding source to Public Transportation Funding (PTF). This keeps the project on task and on track. And then also we need to get these installed before we put the fare vending machines in because the closed circuit TVs cameras monitor the fare vending machines. And what I've got here is just a couple slides I wanted to show you. So the original purchase, you know, $60,000. And you can see how ARRA was funding eighteen of those cameras. And then PTF were funding seven. And then if we move to the eighteen ARRA cameras becoming public transportation fund funded, it gives you the break outs there of what the additional is. And then if you go to the next slide, it shows you the total amount then that would be coming from those particular cities, so Chandler, Mesa, and Gilbert's jurisdictional equity. And due to the timing and so forth, I think it would be a good idea to go forward and move this with nonfederal PTF funds. And we will do whatever we can. As you probably saw in the memo, the engineer's estimate was for $167,000, and now we've got a bid price of $60,000, so we're basically a third of what we thought this was going to cost. We don't want to leave that ARRA funding on the table, so we'll do whatever we can to try to attach more ARRA to bring it back into the agency to liberate basically RARF and local funding here at Valley Metro. So with that I'll conclude my comments on the consent agenda, Mr. Chairman. Vice Mayor Donovan said I have a comment on 2C. Since the ARRA funds were originally going to those three cities and now they're going to be part of our other funding, if staff could just look at, as you look to reuse the ARRA funds if it could go to those three cities so it could still remain fair. Mr. Jungwirth said we'd be happy to do that, Mr. Chairman, and Councilwoman Donovan. Chair Aames said does anyone else wish to make a comment or discuss anything on 2C or really any of the other consent items? Does anyone want to take one of the consent items off the list for further discussion? No. Okay. Then I move for a motion and a second to approve the consent agenda.

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IT WAS MOVED BY VICE MAYOR SOMERS, SECONDED BY MAYOR MOOK AND UNANIMOSULY CARRIED TO APPROVE THE CONSENT AGENDA ITEMS A THROUGH H. Chair Aames said I'm going to go back to an earlier item on my list of things to do here and that pertains to Shana Ellis, chairwoman from the city of Tempe. And Shana was the chair of the RPTA for the previous year. And we want to recognize her. And I would like to take this opportunity personally to thank you, Shana, for your service as chair for the past year. And we're going to honor you today for your outstanding work as the chair. It would take a long time to go through all of the things that you have accomplished directly at RPTA and related things back in Tempe in terms of transportation including your good work on encouraging younger people to ride the bus in Tempe. I know you gave some presentations on that even before you were chair; right? But let me start by saying a few things. And you participated in these during your term as chair: The Arizona Avenue Link ground breaking and ribbon cutting. Do you remember that? Good. The Route 184 kickoff at Phoenix-Mesa Gateway Airport, the mobility center ribbon cutting, which actually I wasn't able to attend because I had another engagement. But later I got a chance to go there and get a nice look at the whole center. The unveiling of the bus wrap at the Trevor Brown High School, Clear Air Campaign awards luncheon, and countless meetings to work through things like the replacement for the RPTA executive director. And I know you spent a lot of time on that and that took a lot of work and it wasn't easy. And we want to thank you for your strong leadership and ability to find mutual ground for all of us to work from. As a way of thanking you, and I think we all know about this, this is the crystal bus. It's got a little cover on it here. And it's going to make its way from me through the city of Chandler, through the city of Mesa all the way to the city of Tempe, and that's to commemorate duties and fulfillment of your responsibility as chair over the past year. And on behalf of all Valley Metro Board members and staff, we have sixteen member agencies, I want to thank you for your leadership, guidance, and commitment to the Board. Thank you, Councilmember Ellis. And is there some others who would like to speak? Councilmember McDonald said Shana, a lot of things just said right now, and I agree with all of those, but the one point I want to make having sat with you in all the subcommittee meetings the many, many, meetings the many hours we spent in executive session and your professionalism as you led the team, I just want to thank you for that, a lot of hard work, and look forward to continue to work with you in the future. Thank you. Vice Mayor Somers said I just to extend that out, I think you probably picked the worst year you could possibly be chair and you are to be commended for that and somebody should give you like this plastic bus or something for that. I mean, seriously, this year

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what you had to put up with as a course for continued decrease in revenue and funding and having to find efficiencies and then this whole challenge of a retiring CEO and you come out and go through the process that you led. And because of your leadership abilities and your sense of humor and your stern finger pointing at some of us, but you were able to get that done and that was no easy task. So thank you very much for your leadership. Councilmember Ellis said thank you all for giving me this opportunity. Never led a regional board before and it was quite an experience. I learned a lot and, you know, as we all have had different leadership experiences in our lives, this one took the cake. I've got to say -- it was -- and I think that anyone that sits in that chair role will find that over the years that, you know, when you're dealing with people that really care about their own communities and they're looking out for their own community sometimes, you know, being on a regional board is a challenge. But I really value the friendships that I have here and then all of you that really, really dug in and we got a lot done this year. And thank you for the list. I have had all these memories flashing through my head of all these ground breakings and ribbon cuttings, but I didn't do those. I just happened to be chair when all of those happened. Those things were in the works for years before I even had the opportunity to sit here, so I want to thank the staff of RPTA for always making me look great and scripting me for the meetings. And if I didn't have all the briefings every month, I would not look as good as I did while I was sitting here. But most of all, I would like to thank the Tempe staff, Greg Jordan and Chad Heinrich who were both pretty new to their positions when I took over as chair. And I tell you -- okay. Now don't hire them away from Tempe, please, but they are the best staff out there, so I would like to give them a round of applause, because we all know that we are only as good as the staff that supports us. So they were really the ones that did this. So I just wanted to make sure that I could recognize them. I will turn it back over to you. Chair Aames said thank you so much, Shana, for those comments and truly you did an outstanding job last year. And as Scott Somers said it was a kind of a trying year. Although now we see revenues increasing, we see ridership increasing across bus and light rail and we may be moving into a new era and I'll certainly take credit for -- 3. Authorization to Issue a Request for Proposals for Fixed Route Bus Service Operations Let me move forward now on the first item on the regular agenda and this is the authorization to issue a request for proposals for fixed route bus service operations and Bryan Jungwirth is going to give us some background on that. Mr. Jungwirth said Mr. Chairman, members of the board. This item requests authorization for us to issue an RFP for fixed route bus service. And RPTA's contract is up a year from July, so we're asking for your permission to go out. And you'll see in the agenda item there's a memo that's attached from the city of Tempe that went to their

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council because what we're trying to do is a unified procurement, so it will actually be bid in three separate ways: It will be RPTA alone, Tempe alone, and then the combination of the two. And that way we'll be able to quantify the savings for the Board which are estimated at $800,000 to a million dollars as you probably saw in the memo. I don't think you need a presentation. We have one available. And we think they'll be some real efficiencies here because if you combine the two you'll allow some creativity to happen from the contracting point of view. You'll allow them to very likely only have one general manager, one maintenance manager, they'll be able to move the routes around and so forth, to minimize deadhead and garner those efficiencies that will be a real good thing, I think, for the transit system. So we're available to do a presentation if you'd like some more information. If not, I would ask that you approve this and go right to the recommendation on page 3 of the memo. With that I'll conclude my comments unless the board members would like to hear Jim give his presentation. Chair Aames said we do have a speaker request to speak on this item. And this is from Blue Crowley. And, Blue, you have three minutes. Mr. Crowley said on your requested fixed route service operation, one of the operations you're not doing is up there in Wickenburg, but with the way that it's being done, I looked at the west side because of your cutbacks on your operations isn't up to what it should be. I would have liked to have spoke at public comment, but I used transit to get here, so your operations work how well in that the two buses I missed, because they had full bike racks, I attribute that to what Terry Goddard taught me that in politics no good deed goes unpunished. Now I did call ahead and speak to the woman upstairs and she said it was brought down to you. So when you do want to get public input and such, unfortunately if we do use the transit because you're looking at it myopically and not expanding it to the level it should be. Service and operations should be 24 hours and seven days a week and it should encompass the entire county, because that's where you're getting the tax from not just the municipalities. And when you take out my route how are you really operating your services correctly. Chair Aames said thank you, Mr. Crowley. Does anyone on the council want to comment on this item? Well, I'm going to make a comment because you told me the savings could be anywhere from $800K to a million; is that correct? Mr. Jungwirth said that’s correct, Mr. Chairman, those are the preliminary estimates. Chair Aames said and this is our scout program; right? Mr. Jungwirth said yes.

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IT WAS MOVED BY VICE MAYOR SOMERS, SECONDED BY COUNCILMEMBER ORSBORN AND UNANIMOUSLY CARRIED TO AUTHORIZE THE ACTING EXECUTIVE DIRECTOR TO ISSUE A REQUEST FOR PROPOSALS FOR FIXED ROUTE TRANSIT SERVICE OPERATIONS. 4. Regional Fare Policy Recommendation Chair Aames said the next item is a regional fare policy recommendation. And I was told there might be a motion to delay this, but that's not going to be the case? Mr. Jungwirth said if I could, I would request that this Board actually table this item until its next meeting. This will allow the staff to give time to brief the Phoenix Transportation and Infrastructure Committee as well as the Phoenix Council itself. You'll recall that Phoenix has a fare ordinance. And that both the RPTA and the Phoenix Council will need to take action in order to effect any fare increase in the future. As well what we're conducting right now, we have a draft report on the fare equity analysis that's required by the Federal Transit Administration that has to do with making sure that there's no disproportional impacts on low income or minority populations. So that's still in process as we speak right now. And I think it would be premature of this Board to make any motions or take any action at this point until that equity analysis is done. And we'd like to get that fully vetted with our committees and so forth. And we don't believe this is going to hurt the timeline as it exists right now, so we'd ask your indulgence for a month off on this item. Councilmember Donovan said I have a question about the equity analysis. Will it look at both the local routes and then the express routes and the differences in equity, the costs and the shares for each of those, or is it going to put them all together for equity and fares? Mr. Jungwirth said yes, it will look at both the affects, the proportional affects, both on the express riders and then the local fare as well, and we'll be bringing those back to you. And we want to make sure that it's not impacting one group more than the other. Councilmember Donovan said so then when this comes back will we be able to see that equity analysis will that be part of the documents in the agenda items? Mr. Jungwirth said that would be our plan is to have that as an attachment to the actual recommendation so that you'll be fully apprised to that as well before you take any action. IT WAS MOVED BY COUNCILMEMBER LITTLEFIELD, SECONDED BY VICE MAYOR SOMERS TO TABLE THIS ITEM UNTIL THE MARCH BOARD MEETING. Chair Aames said the Regional Fare Policy recommendation is tabled until our next meeting next month.

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5. Proposed Changes to the Reduced Fare Photo ID Program Chair Aames said our fifth item, our third regular agenda item, is proposed changes to the reduced fare photo ID program. And Bryan Jungwirth is going to provide background information. Mr. Jungwirth said similar to Item 3, we also have a presentation on this as well. It's in your packet. It's a pretty involved subject, I guess you could say, but on page 5 of your board memo has Items A through I that constitute the recommendations on this item and it was approved by the TMC. Phoenix, Tempe, Mesa and Glendale did vote no on this. What their concerns were, I believe, had to do with the pricing of the cards for the reduced fare ID cards. And right now we charge $2.50 and the recommendation by TMC was to increase them to $10 for the new cards, $10 for replacement cards, and a $5 surcharge for expedited processing. I believe the cities that voted no thought it was because of the ability for that population to pay the fee an extra $5, from, say, $5, the original recommendation was to go to $5. That it would be difficult. Whereas other TMC members thought, no, you should go after your full cost recovery. So if we charge the $10 it would be a full cost recovery. So the other recommendations include a revised application on disabled applicants having to mail the applications to RPTA and Valley Metro for review and verification, expedited applications, paying the higher fee, drug and alcohol dependent would be required to attend meetings, counseling, job training, and actively seek -- or actively seeking employment and that those alcohol dependent applications must be preapproved as far as their facilities by the Valley Metro staff. And then the issue that remains still is the pricing of the cards. So we have a presentation if you'd like to hear it. My recommendation would be to approve this item. If you want to discuss the differences of a $10 card versus a $5 card that would be up to you, but it is the TMC recommendation to move it to $10 for new cards, $10 for replacement, and $5 for the expedited processing. With that I'll conclude my comments, Mr. Chairman. Chair Aames said would anyone on the Board like to discuss this? Okay. Please. Vice Mayor Cathy Farr said recently I attended a meeting at the transportation committee of the legislature. The comment was made that 65 percent of our ridership on the bus is low income. I can see where this raising these cards to $10 could be a definite issue with low income people. The majority of our low income people are handicapped in one way or the other, so I think I would question that raising for the low income. I'm not sure how you would change that replacement card, but I think maybe that should be looked into before we accept this. That's just my opinion. Vice Mayor Somers said first of all, I appreciate the work that the TMC did on this. It's some good work, but since when is anything we do in mass transit cost recovered. What we're trying to do is we're trying to get full cost recovery, which is always an

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admirable goal, for the card processing fee specifically. And the people that are most impacted by this are really those with mental and cognitive disabilities. Those are the folks who have a higher tendency to misplace their card. They're not doing it because they're careless, they're not doing it unintentionally. It's just they have a challenge in making sure that they're organized, and so I think that they're challenged a little more. What I would recommend is that we would approve the recommendation with the caveat of some changes out of Item H which is that we would raise the processing fee from $2.50 to $5 for new cards for individuals with mental and cognitive disabilities, and from $2.50 to $10 for new cards for other applicants, $5 for replacement cards, and free expedited processing for most cards for individuals with mental and cognitive disabilities, and a $5 surcharge for expedited processing for all other participants. And if you're entertaining the motion, I'll make that motion. Chair Aames said would anyone else want to comment on this item? Councilmember Ellis said I'll second the motion. Chair Aames said we'll do a motion in a minute. Does anyone else want to comment on this? Councilmember Donovan said I'd like to have some clarification over what's involved with the expedited processing. That's where, I guess, I'm a little bit concerned. If it takes a lot of work and it's completely free, then I'd need to understand the quantity that is happening now and how that might increase to see if it would be good for us to offer that for free so if we could get more detail. Mr. Jungwirth said Scott Wisner, our customer service manager, will talk a little bit more because he's also got a concern about the legal parameters of what's being recommended by Vice Mayor Somers. Mr. Wisner said let me just give a little clarification on the idea to lower the cost for a specific disability category. That doesn't fall within the Americans with Disabilities Act that you can single out certain types of disabilities for a different pricing structure. You have to be very careful and have equality for all. And so if your idea or your desire is to lower the cost of the card from the proposed $10 down to $5, you'd have to make that price good for all persons with disabilities. So you can't single out just certain categories. Lowering the cost for all categories is doable. To your point about cost recovery, yeah, that's not something we usually do, but that was something that TMC or some members of TMC felt that was necessary or would be a good idea. So we can certainly move forward with a reduced price on that for that category. I think for simplicity because you have low income seniors, obviously youths don't typically make income or have very low income, and administratively I would recommend you pick one price for the card and that probably would be $5. That seems like that's kind of the comfort level for most people.

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Back to the expedited process, that's a process whereby right now the proposal is to have customers mail in their applications if they're disabled, so we're going to process those in the normal processing time. We think it's going to take about five days normally to get that done. We're going to receive anywhere from seven to eight thousand applications a year. Our staff is taking on that responsibility without any additional staff. So in order not to add costs and add staff, we thought we would take that internally and do that as fast as we could and try to get that done so customers can get a card in a timely planner. The expedited process allows somebody to pay a small fee to expedite that and come in directly to our offices and get it done in the same day. If we offered that for everybody, same-day service, we'd never be able to deal with the demand. So it's a nominal fee to kind of almost like what you would pay in terms of expedited process for your passport. They charge a lot more than that obviously than we would here, but that was the idea. It would be something where we could do it the same day and measure how well we're able to do that effectively with our staff. Vice Mayor Somers said thank you, Mr. Chairman. A bus card is not a passport. When they do a passport, they have to do a background investigation and a lot of other stuff. When you're doing a bus card, you're walking in and you're getting a bus card. So what is it that you feel that there would be such great demand if we did an expedited service, the same-day service of just walking in and asking for your bus card? Mr. Wisner said Mr. Chairman, Vice Mayor Somers, we have to review that application to make sure that person qualifies for the reduced fares. So in case of a disability, somebody applying for a disability card, we have to verify that person is legitimately disabled and to what level their disability affects their ability to ride transit without special training or special accommodations. So we might not be able to just look at that on face value and make the approval. We might have to contact their doctor. We may have to wait several days for their doctor to get back with us to verify their disability and to tell us that, yes, this person does have this condition that prevents them from using the bus normally. So there's going to be a time delay typically in that. Some we may be able to approve right off the bat, others we may have that time delay. So we're just saying as a matter of process, it's going to take anywhere from five to 10 days to get those done, hopefully sooner. What we're saying is if the person can bring in their documentation from their doctor so we don't have to contact their doctor directly, we can do the expedited process right there on the spot and they can walk away with a card right then and there. Vice Mayor Somers said what was your recommendation for -- was it $10 for the expedited or $5? Mr. Wisner said it was $5. Vice Mayor Somers said $5.00. So you're telling me the difference between -- for $5 you're going to sit there and make all those phone calls and contact their physician and

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contact all those folks that you were talking about. It's a $5 difference between expedited and -- that's cost recovery? Mr. Wisner said no. Basically what I'm saying is that when they come in for the expedited process, they'd have to have their documentation. We wouldn't be able to -- if they don't have their documentation and they come in without it, we would try to contact their doctor. The problem with that is we can't always rely on doctors getting back to us. I've managed the ADA certification process for many years and with our paper process that was our biggest challenge was getting a response back from the doctor. It could take anywhere from two to three weeks. Vice Mayor Somers said and you estimate that amount to be $5? The difference between if I were disabled and I were to come into your office, the difference between regular service and expedited service is $5 on this proposal, and you're telling me that if I were to come in and ask for the expedited service given all the things you have to do on this background check that the cost of that you estimate is $5 to expedite. Mr. Wisner said we never did do a cost analysis of how much we'd have to charge for that. We didn't break out how much time we would have to spend on those because the idea behind that was -- Vice Mayor Somers said so it's not a recovery fee -- it's a discouragement fee. Mr. Wisner said it's a surcharge. It's a surcharge for doing the same-day appointments. Councilmember Pizzillo said just a quick question. I see your analysis, I guess, on page 7. I guess the cost of new cards is $80,000, if -- and I assume that's the $10 -- where would that money come from if it's lowered to five or whatever number that they were talking about right here? Where would you make up the difference, because apparently you have some expenses here that you're listing that you're shifting for these cards here, so if you don't get the money to cover that cost, how are you going to cover those fees? Mr. Wisner said we're not going to be able to make up that difference. The majority of those costs are staffing times so staff time spent on the process. So we wouldn't be able to make up that difference in cost in reality. We're not making that difference up now. We're basically subsidizing that with our staffing time now and eating that cost as a cost of doing business to issue those types of cards. That was the idea behind this was the TMC felt that it was a legitimate cost for the deal that these people were getting -- that these customers are getting a discount for up to five years at a reduced rate, and so the thought was a $10 fee for that initial card that's good for up to five years was a nominal fee. But we would not be able to recover all of our costs back if we did charge less than $10. Councilmember Pizzillo said it's my understanding, and just to follow up there, Mr. Chairman, is that if you're going to pay $80,000 whether the card is $2.50, $5, or $10 because your staff is there anyway and I assume most of them are probably

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salaried, so you, you know, if they don't charge this it's just an additional $80,000 that you'll have to your coffers not anything that's really costing you any more money. Mr. Wisner said yes. Councilmember Pizzillo said is that clear? Mr. Wisner said yes. Councilmember Pizzillo said thank you. Just a comment, please, Mr. Chairman, is I think that's from $2.50 to $10 that's a what? A 400 percent increase? It's just to me, you know, from a shock value to piggyback on councilmember or Vice Mayor Somers is that for those people that are using that I just think that's a huge increase. Chair Aames said how much is the cost for this -- doing the additional card? That's not the $80,000; right? No. It's just issuing cards in a year for everyone. Do you have a number about -- Mr. Wisner said yes, the cost for replacement cards was estimated around $6 dollars and change. Because we don't have to have that review of the application as part of that, it's just where they can go back to the outlet that they got it from and reapply and then all that we're paying for that is the card actual materials for the card and the commission fee for that. So it's less for a replacement card. That's why you put that in there so in case you wanted to lower that amount down for replacements. We thought, you know, it was viable. Back to the point about the increase from $2.50 to $10, when we looked at this we looked at the total cost, cost recovery-wise. We proposed $5 because we believe that was a reasonable fee to charge for a card good for five years. But we got direction from the TMC to go for full cost recovery. We felt like we'd bring it before the Board, let the Board make that decision for us and we're happy to go with either way, either -- whatever the Board's desire is and we will certainly be able to do it either way. Chair Aames said I do see an amount for $53,985. Is that the replacement card cost annually? Or you're just saying on the revenue that would come in at $6.36; right? Is that what you're estimating for -- Mr. Wisner said yes. That's the replacement cost. So it would come down to $6.36 per card if we wanted full cost recovery. Chair Aames said $8,485 is that how many replacement cards you're doing -- Mr. Wisner said no. That's just assuming that everyone had a replacement card. So that could be quite a bit more or quite a bit less depending on it. There really was no way to factor in how many replacement cards we're issuing right now. Chair Aames said you haven't tracked how many replacement cards.

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Mr. Wisner said no, we have not. Chair Aames said I would think it would be less than everyone. Mr. Wisner said right. Chair Aames said but it might be more than one for a particular individual. Mr. Wisner said right. Councilmember Donovan said so just for some clarification, the expedited service happens only once when people are getting new cards and would be the difference between same-day service if they have all their paperwork together or hopefully a five- to seven-day process. But if someone has lost their card, then that information will be in a system that they can go wherever they need to and they'll be able to at that moment get a replacement card and not have to have any surcharge regardless of what category they fall into? Mr. Wisner said yes, that's a good assumption. That's very true. Councilmember Donovan said so people will go to these places, will it be in a computer or how do they -- Mr. Wisner said it's all computerized and it's all networked. So when you go there if you're in the system and you've had a card and it still has eligibility on it, you can get a replacement card right there on the spot and pay your normal fee, whatever that fee is based on what the Board decides today. Councilmember Donovan said I'm not sure if Vice Mayor Somers, when you were talking about the expedited service, if you were concerned about you mentioned people with mental and cognitive disabilities losing their cards, they could still get replacement cards right away and not need the expedited service, whether it's free or $5. Vice Mayor Somers said so it's really just the expedited fee, so we don't have to worry about -- Councilmember Donovan said well, the expedited fee is just one time in the beginning -- Vice Mayor Somers said at some point I am going to form a sentence in this conversation. Fortunately the mike was off. So my concern about the expedited fee for replacement cards is moot because they can just come right in say they're missing a card and you'll give them the card right there. Mr. Wisner said yes. Vice Mayor Somers said so the expedited fee is just for the first time.

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Mr. Wisner said it is for the first time only. Vice Mayor Somers said I'm a little more comfortable. Councilmember Pereira said I would suggest that we recover just what I consider as hard costs. And what I mean by that is like the current supply which is budgeted at $7500. And the equipment maintenance which is budgeted at $4,000. And the photo ID outlet commissions at $8500. If you divide that amount the total amount by the 8,400 cards that are issued, that comes to roughly $2.36 which is just under the $2.50 that we charge now. And that's where I would leave it. I would not try to recover any of the other costs because staff is already on hand, Internet connection is already available throughout the building or throughout the office space, so there really isn't -- I mean, it's already being paid for. So I wouldn't -- I would not increase to $10. I would keep it at 2.50 and look at it again in a few years down the road if it's not through working out. Chair Aames said thank you. Anyone else would like to have a comment on this? Okay. I think Vice Mayor Somers wants to revise his statement. Vice Mayor Somers said technically I never made a motion because -- Blue Crowley said and I never got to speak because I thought that you said that was still on the equation. I did turn in a card. Chair Aames said you have a minute and a half. Mr. Crowley said I don't appreciate that at all having been taken out of a meeting illegally at an RPTA function. If you look at the document I requested a week ago that I get this and I was told it hadn't been okayed. I have requested, as the past chairman knows, how many times that I get the full packet. Being that 96 percent of those that are requesting it are covered by myself being both elderly, as Bob and I are getting closer and closer and also disabled, I have a problem with the way the gentleman referred to people saying those that have a problem getting on the bus. Well, I thought we've gotten past that. It's not a problem for that wheelchair to get on the bus, it's a part of the whole equation. I totally agree with, Rui, and what he's having to say especially with the Gold Rush Days coming on and all the work that he's having to do. When I look at the math of it, I have problems with how much of that staff is also redone and when it's the total amount of people that are there, how many of the disabled are there and as Rui did the math, I really appreciate that, because that's what I would have also been saying. Give you back your time. Chair Aames said thank you. Vice Mayor Somers has another comment or question. Vice Mayor Somers said just one more for the staff member and thank you for letting

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me beat up on you the whole time, not the first time. I've enjoyed it thoroughly. Mr. Wisner said I'm glad you have. Vice Mayor Somers said now you know how my staff feels. When Councilmember Pereira adds up those other numbers in considering in looking well initially with the $10 for a new card, so I can understand a higher fee for the new card because you have some additional work to do based on what you said. You have to verify through their doctor that they're actually disabled. So then the direct cost of the card is about $2.50 if we just do the direct cost. So when you do a replacement card, you don't have to do all that background; correct? You're just replacing the actual card, which according to what my distinguished colleague from Wickenburg said, is about $2.36, $2.50. Mr. Wisner said yes. Vice Mayor Somers said so that would be about accurate? Mr. Wisner said yes. IT WAS MOVED BY VICE MAYOR SOMERS, SECONDED BY MAYOR STANTION AND UNANIMOUSLY CARRIED TO APPROVE THIS WITH CHANGES TO SECTION H WHICH WOULD RAISE THE CARD PROCESSING FEE FROM $2.50 TO $5 PER NEW CARD, A REPLACEMENT CARD WOULD COST $2.50, AND THERE WOULD BE A $5 SURCHARGE FOR EXPEDITED PROCESSING. Chair Aames said before we go into our next item, which may lead to our leaving the room for a while, I would like to introduce one of our new board members and I brought a picture of him here in Arizona Food Industry Journal and I know he's very busy. He's probably busier than he's ever been in his life, you might guess. And he's our mayor of Phoenix. Phoenix is our large central group in the regional council of 16 here. And their needs are very important because it's such a large number of people and our growth has come from Phoenix. Although I did read that Grand Avenue was one time called Vulture Road. And that Wickenburg and the owners of that vulture mine came down that Vulture Road and founded Phoenix. Is that a true story? Councilmember Pereira said that's a true story. That's how we tell it here in Wickenburg. Chair Aames said and that's as wide regionally as we can get from Wickenburg down to Phoenix here. So we are looking forward to working with you on regional issues. Mayor Stanton said I am honored to be here. I look forward to working with all of you. I have one question. Why did you put me next to Littlefield? Did I do something wrong? Chair Aames said we would like to welcome you, Mayor Greg Stanton, and look forward to your participation on this group.

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6. RPTA Executive Director Selection Update The next item is RPTA executive director selection update. And Councilmember Ellis is going to provide us with an update. Councilmember Ellis said we've had two meetings since our last RPTA Board meeting. I think we've worked out some of the concerns that members had. And I don't believe that there is anything that we need to talk about in public. IT WAS MOVED BY COUNCILMEMBER ELLIS, SECONDED BY VICE MAYOR SOMERS AND UNANIMOUSLY CARRIED TO ADJOURN INTO EXECUTIVE SESSION PURSUANT TO A.R.S. § 38-431.03(A) (4) FOR THE PURPOSE OF INSTRUCTING ITS ATTORNEY REGARDING THE RPTA’S POSITION ON AMENDING CURRENT AGREEMENTS WITH METRO, INCLUDING AN AMENDED EMPLOYMENT AGREEMENT WITH MR. STEVE BANTA AND AN AMENDED IGA WITH METRO. The regular meeting adjourned at 1:36 p.m. The regular meeting reconvened at 2:18 p.m. Chair Aames said we are reconvening the regular session of our RPTA meeting for Thursday, February 16, 2012. And do we have a motion concerning the RPTA executive director selection? Scott, will you do that? Vice Mayor Somers said thank you, Mr. Chairman, I'd be honored to make a motion with a short comment in front of it. First, I would like to commend the work of the subcommittee led by our former chairwoman Shana Ellis. This was a long and arduous road. Only several people stood up at a time when we were really trying to work to something that was going. And we knew going in that this was going to be difficult to put together. And they stood up and said I will lead the way. And they have done phenomenal work putting in a lot of long hours to come up with an agreement that is both fair to this Board, to the Rail Board, to the customers at the end and also to Mr. Banta. So you are all to be commended for the work. It was really a job well done. And it's members not only of this Board, in particular but as well as Valley Metro. So congratulations on a job well done. I'm looking forward to making the motion on this, sir, because this is really a historic agreement and we have for a long time had two systems of transit: Rail and bus, that were done in many ways completely separate. And we know that doing that we did have some inefficiencies. And by having a single director we would be able to provide to our customer a far more cost effective and efficient system of transportation over time. So this is a great step in creating a really truly regional transit system for everybody here in Maricopa County. IT WAS MOVED BY VICE MAYOR SOMERS, SECONDED BY COUNCILMEMBER

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LITTLEFIELD AND UNANIMOUSLY CARRIED TO ACCEPT AS WRITTEN THREE AGREEMENTS: ONE IS THE THIRD AMENDED AND RESTATED INTERGOVERNMENTAL AGREEMENT BETWEEN THE REGIONAL PUBLIC TRANSPORTATION AUTHORITY AND VALLEY METRO RAIL, INCORPORATED. SECOND IS THE INTERGOVERNMENTAL AGREEMENT BY AND BETWEEN THE REGIONAL PUBLIC TRANSPORTATION AUTHORITY AND VALLEY METRO RAIL FOR A SINGLE CHIEF EXECUTIVE OFFICER, AND THE EMPLOYMENT AGREEMENT FOR MR. BANTA. Chair Aames said it passes unanimously. And I also would like to say that indeed this has been a long process, but I think a very valuable process for all of the citizens in Maricopa County that we have one CEO directing a larger transit program for all of us. There will still be two boards maintaining those needed things that will need to be separate in terms of some decision making. But one united front now in terms of the chief executive officer for Maricopa County transit activities rail and bus. Does anyone else want to make a comment on this? Yes. Vice Mayor Farr said I just want to make sure that we thank Mr. Jungwirth for for stepping up and keeping us going in the right direction while we were in this process. Mr. Jungwirth said it was my great honor and privilege to serve the Board and thank you for that. Chair Aames said anyone else want to make a comment? Okay with that I'll ask if there's a motion for authorization for the acting RPTA executive director to continue service until February 29th, 2012, and that's in part because the agreement with Mr. Banta as he starts his employment as a dual CEO on March 1st. IT WAS MOVED BY COUNCILMEMBER LITTLEFIELD, SECONDED BY VICE MAYOR SOMERS AND UNANIMOUSLY CARRIED TO AUTHORIZE THE ACTING EXECUTIVE DIRECTOR TO CONTINUE SERVICE UNTIL FEBRUARY 29, 2012. 7. Legislative Update Mr. Jungwirth said his report would be sent out with the meeting summary. 8. Future Board Agenda Items Request and Report on Current Events Vice Mayor Somers said I have two. The first one related to the motion I just made which is within the employment agreement there is opportunity for Mr. Banta under Section 4 salary, Item C for employee performance incentive compensation. This was set up so that we could establish some goals and attach them to a bonus. There are no goals, specific goals, laid out in this particular agreement. It was understood that we would do a working group on that, so I think for our next meeting we need to immediately put together a smaller working group to put together those goals in quantifiable measures that's the best interest of this Board and Mr. Banta as well.

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Chair Aames said and if I may, I think we can start looking at that immediately; right, Bryan, in selecting members? Mr. Jungwirth said yes. Chair Aames said and I had two that have volunteered already. Is there anyone else that would like to volunteer? Vice Mayor Somers said the second one we heard today the discussion of $5 expedited fee, but yet there's a disconnect with what it is exactly that $5 is for, whether there's actually a cost incurred for the $5. Now I left it in place on my motion because I thought it was only fair that we covered some costs, but I would like this Board to look at that maybe direct RPTA staff to do investigation whether there actually is a cost for an expedited fee, if we even need it at all. Mr. Jungwirth said we'll be happy to do so, Mr. Chairman. 9. Executive Director’s Report Mr. Jungwirth said going back if it's okay with the Board we'll send an e-mail out to the Board to see if any members would like to participate in the working group and then we'll bring that back on to the next agenda, if that's okay as well. And then the Board can vote on that since it's not on this agenda. Chair Aames said and we'll be able to discuss that; right? Mr. Jungwirth said yes. The executive director's report, Mr. Chairman, we do have a slide show real quick. Just to give you a couple issues and an update for the strike update. Veolia Phoenix has been negotiating their collective bargaining agreement with the ATU since 2010. That contract expired in June of 2010. And ATU filed an unfair labor practice charge with the NLRB with the intent to stop the implementation of the best and final offer. The NLRB then came back and said, no, you really haven't reached impasse, so you really should not, you know, basically enact your best and final offer. So it was our understanding that Veolia was going to provide a response back to NLRB yesterday -- or two days ago. And then Veolia Tempe, they were presented a best and final offer as well to the ATU members in September of 2011 and the membership voted to reject that contract. Veolia has not imposed a best and final offer in Tempe. The union has received approval from its international leadership to conduct the strike. Both of the contracts have a contingency plan that would guarantee service at some reduced level, usually like a Sunday level of service and, sometimes it may take time to ramp up to that, but we see that as a good thing to keep service on the road in the event of a strike. Veolia's current contract with RPTA expired December 31st of 2011, and

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they're continuing contracts negotiations at this time. So we don't think that would spill over to the Mesa contract with RPTA, but we don't know for sure given the sick-outs and other things that could happen. METRO light rail is not affected by the strikes at all. So one of the questions is how are we communicating to the customers. And at our call center on the messaging we have up-to-date information on what's going on with the strike. We've updated the Web site with a banner to direct people to strike information. The Route Scout which is the messaging on all the buses has information on it. Our Listserve updates and e-mail messages to employers and passengers go out regularly, and then the social media, Facebook and twitter, those have been updated and released, media releases as well. We're asking people to be prepared now in the event of a strike by looking for carpool partners, working at home, or utilizing taxis. These are some of the grants that are being released. MAG's kind of leading the charge on this for the FTA grants, the discretionary grants that are coming up this year. And my understanding is they have had some meetings on that already. Bus ridership information so you're seeing a monthly increase of January over January of nearly 13 percent. That is a big jump in the bus number. And you see the average on the average weekday going up 7.6, so Saturday and Sunday must be up quite a bit as well. Monthly rail ridership 9.1 percent increase. And then 6.2 percent on the weekday average for METRO light rail ridership. Just a few business service events. Rideshare week is coming up February 26th through March the 3rd. We're asking commuters to share the ride. We have a kickoff event on the 24th of February over lunch hour at CityScape and there will be an employer challenge again similar to last year's where we got the different employers competing for the highest percentage of the carpool or share the ride to work and we'll be giving away prizes via our Web site for people that participate. Valley bike month is in April trying to market bicycling as a safe, viable transportation mode. We had a bike to work to day on the 18th of April. The Great Bike Chase to see the Diamondbacks on April 22nd. And then the different events all month. The upcoming board agenda items for March are here in front of you and then we'll be adding that potential fare policy increase to the agenda as well. Upcoming events, Friends of Transit 10th annual conference is on February 24th from 8:00 a.m. to 1:30 p.m. We've sent e-mails to the Board. If you'd like to attend that, just let us know. We'll be happy to host you. The Congressional staff luncheon in Washington D.C. during the National League of Cities on March 12th and then the AZTA's annual conference is out in Flagstaff April 23rd. Next meetings of the Board March 22nd and April 19th at 12:45 in this room.

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Mayor Stanton said on Veolia Phoenix after the finding of the unfair labor practice they were ordered back to the bargaining tables, so there is negotiations ongoing between the union and Veolia as we speak. Chair Aames said anyone else have something they want to say as kind of an update? Councilmember Pizzillo said I appreciate the staff taking a look at some of the calls we've been getting, you know, as far as the ridership and the overloading, so I appreciate the effort. In fact, I've already gotten some numbers from you, so trying to figure out a way to resolve that. I know it's Valley-wide, so I appreciate that as well, but anything you can do to help alleviate, we would appreciate that in the city of Goodyear. Thank you. With no further discussion the meeting adjourned at 2:32 p.m.