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, 3rd 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.
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: