Board of Directors Meeting Monday May 22, :30 p.m.
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1 Board of Directors Meeting Monday May 22, :30 p.m. Intermodal Transportation Center (ITC) 1001 Jones Street, 2nd Floor Community Room Fort Worth, TX 76102
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3 BOARD OF DIRECTORS MEETING AGENDA 3:30 p.m., Monday, May 22, 2017 Intermodal Transportation Center (ITC) 1001 Jones Street, 2 nd Floor Community Room Fort Worth, Texas A. Call to Order B. Pledge of Allegiance C. Citizen Comments D. Fort Worth Transportation Authority Scholarship Awards E. Committee Reports Regional Transportation Council (RTC) May 11, Scott Mahaffey Commuter Rail Committee Working Session May 15, Dennis Dunkins Planning/Operations/Marketing Committee Working Session May 15, Neftali Ortiz Finance & Audit Committee Working Session May 15, Andre McEwing F. Items to be Withdrawn from Consent Agenda G. Consent Agenda 1. BA Regional Positive Train Control (PTC) Procurement 2. BA Approval of the Union Pacific Railroad Force Account Work Associated with Construction and Maintenance Agreement for TEXRail Construction H. President s Report - Paul Ballard I. Chair s Report - Scott Mahaffey J. Other Business This facility is wheelchair accessible. For accommodations, for hearing or sight interpretive services, please contact Melanie Kroeker at (817) , 48 hours in advance. 1
4 K. Executive Session The Board of Directors may convene in Executive Session under the Texas Open Meetings Act for the consultation with its Attorney pursuant to Section ; deliberation regarding real property pursuant to Section ; deliberation regarding prospective gift pursuant to Section ; deliberation regarding personnel matters pursuant to Section ; deliberation regarding security devices pursuant to Section and/or deliberations regarding economic development negotiations pursuant to Section BA st Amendment for the Purchase of Real Property for TEXRail Union Pacific Railroad (UPRR) 2. BA Payment of Relocation Benefits (X0450) L. Reconvene M. Vote on Action Taken on Matters Deliberated in Executive Session 1. BA st Amendment for the Purchase of Real Property for TEXRail Union Pacific Railroad (UPRR) 2. BA Payment of Relocation Benefits (X0450) N. Adjourn Next Meeting will be held on June 26, 2017 at 3:30 p.m., at the Intermodal Transportation Center, 2 nd Floor Community Room 2
5 Consent Agenda Items
6 Board of Directors Action Item Item Number: BA Meeting Date: May 22, 2017 Item Title: Regional Positive Train Control (PTC) Procurement BACKGROUND The Rail Safety Improvement Act of 2008 (RSIA 2008) mandated that all railroads that provide regularly scheduled commuter rail passenger service must develop a plan for implementing Positive Train Control (PTC) before December 31, Congress extended this deadline to December 31, 2018 due to a myriad of technological issues. Due to this mandate, both TEXRail and the Trinity Railway Express (TRE) are required to install this technology. In an effort to minimize duplication and to maximize savings, TEXRail and TRE intend to procure PTC hardware, software, 220 MHz radio spectrum, PTC data radios, and PTC installation and integration services jointly. The 220 MHz radio spectrum and PTC data radio contracts are being managed by Dallas Area Rapid Transit (DART) and the Regional PTC contract is being managed by the Fort Worth Transportation Authority (FWTA). The similarities of the two railroads will allow TEXRail and TRE to have identical PTC systems provided by the same contractor. In the realm of PTC, the only difference between the two railroads is the type of locomotive and passenger car equipment used. The project has been jointly procured, but priced separately. All TEXRail specific components will be listed separately and paid for with funding specific to the TEXRail project (Full Funding Grant Agreement). All Regional PTC components and services procured for the TRE will be paid for by Regional funding, and the DART and FWTA respectively. As part of the TEXRail CM/GC contract, Wabtec Corporation, has been selected as the subcontractor that will be providing TEXRail with an FRA compliant wayside signal system. This contract covers all Systems needed on the TEXRail commuter rail line. Due to the difficulties of tying the wayside signal system work with PTC testing that may take place many months after TEXRail enters revenue service, TEXRail PTC work was rolled into the Regional PTC contract. Since the overall PTC system must be interoperable and must control train movements on the TRE and TEXRail, and with both railroads sharing the Back Office System and Train Management and Dispatching System, it became obvious that Wabtec should take on the additional scope of work to integrate all of TRE s PTC system with TEXRail s PTC system. The majority of TRE s signal and communications systems are out of date and must be upgraded to become PTC capable. This includes; fiber optic cable and communication equipment installation, wayside signal, stand-by power, and RF communication equipment upgrades. Additionally, TRE locomotives and cab cars must have PTC equipment installed on them to operate within the PTC system. Currently, the TRE has 3
7 Meeting Date: May 22, 2017 Item Number: BA Page: 2 Item Title: Regional Positive Train Control (PTC) Procurement a contract with Verizon Communications to install the fiber optic cable from T&P Station in Fort Worth to Union Station in Dallas. In addition to the fiber optic contract, TRE has negotiated with Meteorcomm Communications Company and PTC 220 LLC, to provide TEXRail and TRE with the 220 MHz PTC radios, licenses, and 220 MHz spectrum needed to properly test and operate the shared PTC system. Over the past two years, TRE has issued an RFP for the PTC system for competitive bid twice. On both occasions, TRE received a single bid from the same company. Both of these bids were very expensive. The first bid was for roughly $81,000,000 and the second bid was for $84,000,000. These two bids did not include the costs for TRE fiber optic cable installation or the TEXRail PTC system costs. After seeing these two bids, FWTA and DART performed a review of the TRE PTC RFP, and found many areas where savings could be captured. The savings included; purchasing all regional PTC hardware and software under the FTA approved Sole Source Procurement, and changing the PTC testing and integration approach, which maximized the importance of sharing all PTC subsystems and testing it as a single entity. After this review, and discussions with Wabtec Corporation, the cost of the Regional PTC system will not exceed the amount of $56,602,014. This is clearly a huge savings and FWTA would like to move forward with this procurement to guarantee and lock in this very competitive PTC system pricing. The following paragraph explains the Sole Source Procurement and FWTA s reasoning for utilizing Wabtec Corporation, and the importance of TRE using the same PTC system as the TEXRail. On April 11, 2016, the Federal Transit Administration (FTA) approved a Sole Source Procurement request submitted by FWTA for the Regional PTC project. This Sole Source procurement was based on the need to have a PTC system that was interoperable with all tenant railroads on both TEXRail and TRE. These railroads include; Amtrak, Union Pacific, Burlington Northern and Santa Fe, Dallas-Garland-Northeastern Railroad, Fort Worth and Western Railroad, and the Grapevine Vintage Railroad. All of these railroads have officially stated in submissions to the Federal Railroad Administration (FRA) their intention to utilize Wabtec Corporation s, Interoperable Electronic Train Management System (I-ETMS) as their PTC system of choice. DBE PARTICIPATION FWTA has been authorized by the Federal Transit Administration (FTA) to procure Wabtec Corporation s, Interoperable Electronic Train Management System (I-ETMS) as its PTC system. This is a very specialized technical system, invented, patent protected, solely owned and provided by Wabtec Corporation. Since FWTA requested that Wabtec remove the PTC work from the TEX Rail systems contract, FWTA requested that Wabtec perform an internal review to see if additional DBE/M/WBE participation was achievable with a review of the Regional PTC contract. FWTA requested that Wabtec perform a good faith effort in achieving a 5% or better, if possible DBE participation goal for the I- ETMS work. At this time, it is believed that Wabtec can provide a 4.7% DBE participation 4
8 Meeting Date: May 22, 2017 Item Number: BA Page: 3 Subject: Regional Positive Train Control (PTC) Procurement level for I-ETMS. As part of the TEXRail systems contract Wabtec stated a 12% DBE goal with an overall goal of 30% that included M/WBE firms. Wabtec will still honor this goal for the TEX Rail systems work that does not include the I-ETMS work. PRICE AND FINANCING The pricing for the Regional PTC is a total cost to procure, install, and test PTC for both the TEXRail and TRE. The cost for the individual railroads is as follows: TEXRail - $ 22,224,299 10% Contingency - $ 2,224,299 TRE - $ 29,230,378 10% Contingency - $ 2,923,038 Regional PTC Total $56,602,014 The TRE PTC project will be funded partially by FWTA and DART per the ILA for cost sharing, as well as grant funding from NCTCOG through the Congestion Mitigation and Air Quality (CMAQ) program. RECOMMENDATION The Finance & Audit Committee recommends that the FWTA s Board of Directors authorize the President/CEO to enter into a purchase contract for the acquisition of Wabtec Corporation s, I-ETMS PTC hardware, software, and installation and integration services for a grand total not-to-exceed amount of $56,602,014. Disposition by Board of Directors Approval: Date: 5
9 Board of Directors Action Item Item Number: BA Meeting Date: May 22, 2017 Item Title: Approval of the Union Pacific Railroad Force Account Work Associated with Construction and Maintenance agreement for TEXRail Construction BACKGROUND The alignment of Fort Worth Transportation Authority s TEXRail commuter rail line requires that commuter rail tracks be constructed on a portion of Union Pacific Railroad (UPRR) property between downtown Fort Worth and the Cotton Belt in north Fort Worth. UPRR and FWTA executed the Construction and Maintenance Agreement for TEXRail to begin construction on UPRR property on February 16, The Construction and Maintenance Agreement contains financial commitments that will be incurred by the FWTA upon its execution and throughout the construction duration. FWTA will reimburse UPRR for any force account that is incurred to support TEXRail during construction. Force account work includes track work, signals, flagging, and materials provided by UPRR personnel. On June 27, 2016 the Board of Directors approved BA , which included an estimate for the UPRR force account work in the amount of $550, During the finalizing the Construction and Maintenance Agreement, UPRR assumed significant amount of additional track construction that was originally designated to be performed by the TEXRail Contractor. As a result of the shift in scope UPRR provided an estimate on April 06, 2017 for the force account work associated with TEXRail construction in the amount of $4,117, The terms of the Construction and Maintenance Agreement also states that FWTA will be responsible to reimburse UPRR, if UPRR is required to pay or collect any federal, state, local, sales and use, value-added, goods and services, or any other similar taxes and/or duties imposed on services provided by UPRR. (FWTA is not required to reimburse UPRR for any taxes on UPRR s additional net income resulting from this contract.) FINANCING The costs for the UPRR Force Account Work are included in the FWTA s capital budget and the 2035 Financial Plan. It will be funded with a combination of Federal and State grants with local match funded primarily with local dollars from the FWTA and Grapevine. 6
10 Meeting Date: May 22, 2017 Item Number: BA Page: 2 Item Title: Approval of the Union Pacific Railroad Force Account Work Associated with Construction and Maintenance Agreement for TEXRail Construction RECOMMENDATION The Finance & Audit Committee recommends that the FWTA s Board of Directors authorize the President/CEO to enter into an additional agreement in an amount of $3,567, for the UPRR s force account work plus a 10% ($356,790.10) contingency bringing the additional approval amount to $3,924, The revised not to exceed amount will be $4,474,691.00, which includes the previous amount of $550, approved in BA on June 26, Disposition by Board of Directors Secretary Approval: Date: 7
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