MBTA
BOARD MEETING OF JULY 11, 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 Board Room, Boston, Massachusetts, on Wednesday, July 11, 2012 at 1:00 p.m.
There were present: Messrs. Jenkins, Alvaro and the Misses Levin and Loux, being a quorum of the Board.
Also in attendance were: the Secretary, Mr. Davey, the Acting General Manager, Mr. Davis, and Messrs. 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 1062ndOpen Meeting to order. He thanked everyone for attending an announced that Director Whittle will not be here but there is still a quorum present. He also announced that the August 8th Board meeting will be held in Gloucester and to check the website for more information.
Chairman Jenkins opened up public comment.
The first speaker was Margaret Crowdis. Ms. Crowdis commented that the RIDE increase is steep for the users when they have a limited income and she asks to please reconsider the RIDE.
A full list of speakers is attached to the minutes.
Chairman Jenkins closed public comment period.
The first item is the approval of the May 22 and June 6, 2012 Board meetings.
On motion duly made and seconded it was unanimously;
VOTED: Approved the minutes of May 22, andJune 6, 2012 Board Meeting.
The next item on the agenda is the report from the General Manager. Mr. Davis stated that in the interest of time he will give an abbreviated report and submit his full report for the record. (Attached) The General Manager also gave an update to the Board on Hunyadi Rotem. Anna Barry gave a briefing on the schedule along with handouts. She noted that the final delivery will be the end of July 2014. Ms. Barry stated that they are going to go to Philadelphia for a meeting and she stated that she will update the Board on the outcome of the meeting. Director Alvaro asked if we had an estimate on what we expect for liquidated damages. The General Manager stated that he requested more information on work force and more detailed information along with a tracking metric. Ms. Barry stated that they when they go down they will go over the schedule in detail. Once they get answers for their questions they will come back after their meeting Philadelphia.She noted that they will be meeting with their SEPTA colleagues because they have heard they have delays as well. Chairman Jenkins asked that Ms. Barry gives the Board a summary on what they said and where the GM thinks we are and what we think the plan will be. The Secretary stated that make it clear that we will fire them if we are not satisfied.
Next item on the agenda is presented by Assistant General Manager Ed Hunter. Mr. Hunter requested the authorization to execute Change Order No. 1 with S&R Construction Co., Inc. for an amount not to exceed $3,849,174.50, to increase the track allowance line item for Contract No. S32CN01, “Construction Services for the Assembly Square Station, Orange Line. Director Alvaro asked about a line in the staff summary where it says that we hired someone to do the scope and then they didn’t fully scope the project. He asked if we went out with an RFP without a finished scope. Mr. Hunter stated that the developer was the lead on this and they hired AECOM. He stated that there was a rush on this to be put out to meet certain commitments with the understanding that there was going to be some additional work with the track throw. Director Alvaro stated that they went out with the RFP knowing that you didn’t have a budget. Mr. Hunter stated yes that was the case but it was needed to meet the commitment for the Assembly Square project. Director Alvaro asked what would have happened if we didn’t go forward with the RFP. The Secretary stated that people may not have been happy and this project may not have moved forward. Mr. David Mohler from MassDOT planning added that the closing on the housing portion would not have happened resulting in not having a viable project in a timely basis for the Assembly Square development. Director Alvaro stated that this was not a narrow miss. The Secretary noted that he is correct but where the MBTA was not contributing money they decided to move forward with the developer realizing that there was a risk. Even with this change order the project will still within the budget that is being paid by other sources. Director Levin stated that when she saw the station it was before it was a lower cost and she stated that she asked the question then what would happen if there costs went over. She said that she was told the developer would take on any extra costs. She clarified that the MBTA doesn’t have any money in this project and it is within in the budget. Mr. Davis stated that is correct. Director Alvaro stated that even though the MBTA may not have to pay the Commonwealth will still be paying a portion therefore we are paying. Mr. Hunter stated that any money spent above the $56 million will be paid for by the developer but if it is below then it would proportionately be disbursed to the contributors. Mr. Hunter stated that we are working to get the negatives back and working on getting the credits from the developer and the contractor and the subs. Director Alvaro asked if he will still go back to get the credits. Mr. Hunter said yes that he will be going back to the developer and subs and work on getting back credits. Director Alvaro then asked what it means when it says that something is part of the scope but not part of the budget in regards to the negative return cable. Mr. Hunter asked if they could go into to executive session. Chairman Jenkins stated that we will go into executive session if there are legal implications. Mr. Hunter said that currently there are no legal implications now but there may be in the future. The Secretary stated that we can go into executive session and if we decide if it is an executive session items them we can release the minutes.
On motion duly made to move this agenda item to executive session where it can be further decided if it is appropriate to be in executive session; it was unanimously;
VOTE: To move to executive session.
The next item on the agenda presented by Mary Ainsley is the authorization to request the Inspector General’s office to utilize Construction Manager/General Contractor, as an alternate project delivery method for the Green Line Extension Project. Ms. Ainsley noted that on June 9th legislation was passed and on June 11th FTA gave them permission to enter preliminary engineering and on July 9th they completed their MEPA process with the Federal Government and the received the finding of no significant impact (FONSI). Chairman Jenkins asked if they were the last hurdle in the approval. Ms. Ainsley answered that they needed one more approval from the Inspector General’s Office. Director Levin stated that we have the consultant HDR Gilbane and then we will have a designer. She asked if the designer will have competition. Ms. Ainsley stated that they will be coming to the Board in September for the approval. Director Levin stated that the designer and contractor will work together on their means and methods to coordinate together. Director Levin asked Ms. Ainsley to go through the pricing process to make sure we are getting the best pricing during the projects. Ms. Ainsley stated that we will be hiring an independent cost estimator. This independent cost estimator will be one component on who does the cost estimates and the final designer will produce the quantities for the line items. Then HDR Gilbane, the general contractor and the independent cost estimator will sit down at many meetings and will discuss items on specific work where they want a specific maximum price. The Contractor will then have a bid opening and see where we are and see if we can final negotiate a number. After we agree on a price then they open the independent cost estimator price if you are within 10% then it is considered a new price if you are not you go back and negotiate a new price to get within 10%.
Director Alvaro noted that he still believes it is a waste to talk about the project with no funding sources. Chairman Jenkins noted that this is not what is being asked today and he noted we are not spending money on the item today but for today it is just a question on the use of CM/GC. Director Loux stated that the Green Line Project is a very important project. It willprovide a much needed transit service to a densely populatedurban area choked by traffic, noise, congestion and poor airQuality and for the same reason the project is so important, it is sure topose many challenges for the project team. Building a projectof this scale in urban areas will require a tremendous amountof coordination with third parties, municipal officials and Stateand Federal regulators.Controlling costs and maintaining schedules will be a majorchallenge.Also, careful planning and construction phasing is crucial tonoise and traffic mitigation, minimize land taking issues,permitting and the efficient staging of construction operations.We know from decades of similar experiences that the verynature of the project is likely to give rise to disputes and claims.For this reason, a project delivery model with a very strongConstruction Management component will provide thenecessary coordination and communication in order to have asuccessful Green Line Extension Project.Director Loux further stated that she thinksMr. Hunter and Ms. Ainsley’s recommendation makes a lot ofsense and reflects his years of experience dealing with majorhorizontal construction projects.
On motion duly made and seconded, it was unanimously;
VOTED: That, the Board of Directors hereby grants in the name and on behalf of the Authority, subject to the approval of the Massachusetts Department of Transportation (MassDOT) permission to utilize the Construction Manager/General Contractor (CM/GC) as an alternate project delivery method for the Green Line Extension (GLX).
The next two items on the agenda were presented by Ed Hunter. The first was the authorization to approve a contract with Pandrol USA, LP, for $8,230,633.00 to furnish and deliver 572,000 Resilient Fasteners, 609,700 screw spikes, and 285,400 tie plate-resilient fasteners required for the construction of the Knowledge Corridor/ Restore Vermonter Project.
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, subject to the approval of the Massachusetts Department of Transportation (MassDOT) and in the form approved by General Counsel, a contract with Pandrol USA, LP, for the manufacture and delivery of Resilient Fasteners, Screw Spikes and Tie Plates – Resilient Fasteners, required to construct the Knowledge Corridor/Restore Vermonter Project, at a total cost not to exceed $8,230,633.00; said company being the lowest responsible and eligible bidder in response to requests for sealed proposals.
The next item is the authorization to approve a contract with Koppers, Inc, for $ 4,131,833.32 to furnish and deliver 69,048 treated crossties which are required for the construction of the Knowledge Corridor/ Restore Vermonter Project.
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, subject to the approval of the Massachusetts Department of Transportation (MassDOT) and in the form approved by General Counsel, a contract with Koppers, Inc., for the manufacture and delivery of Treated Crossties, required to construct the Knowledge Corridor/Restore Vermonter Project, at a total price not to exceed $4,131,833.32; said company being the lowest responsible and eligible bidder in response to requests for sealed proposals.
The next items to be presented by Claudia Russell are items 7 and 9. Item 7 is the Authorization to enter into a contract with A. L. Prime Energy, Inc for the supply of gasoline as called for during an estimated, depending on usage, three-year period, with two one-year options, subject to price in effect at time of delivery at a cost not to exceed $7,398,842.00.
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, subject to the approval of the Massachusetts Department of Transportation (MassDOT) and in the form approved by General Counsel, a contract with A. L. Prime Energy, of Wakefield, Massachusetts for the supply of gasoline as called for during an estimated, depending on usage, three-year period, with two one-year options, subject to price in effect at time of delivery, at a total cost not to exceed $7,398,842.00; said company being the lowest responsible and eligible bidder in response to requests for sealed proposals.
Next Ms. Russell presented Item 9. Ms. Russell requested Authorization to enter into a contract with Alstom Transportation, Inc. for the Mid-Life Overhaul of 74 Bi-Level Commuter Rail Coaches for a cost not to exceed $114,719,722 first completed coach must be delivered within 15 months from Notice To Proceed (NTP) and the final coach not more than 55 months also from NTP. Director Loux asked if they have done work with us before. Mr. Mudge stated that they have done work for us and we were very happy with their work.
On motion duly made and seconded, it was unanimously;
VOTED: That, subject to approval of the Massachusetts Department of Transportation, and the completion of FTA Buy America audit requirements, 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 the form approved by General Counsel, to execute a formal contract with Alstom Transportation, Inc., New York, NY, for the Mid Life Overhaul of 74 Bi-Level Commuter Rail Coaches (model years 1990-1991), including Options II, XI, XIII, XVII, and XVIII, manuals, training program and hidden damage in accordance with Technical Specifications No. SR-43, at a total not to exceed delivered cost of $114,719,722.
The next item on the agenda is item 8 presented by Steve Mudge. Mr. Mudge requested the Boards Authorization to execute a change order to formal contract No. 671 with MotivePower, Inc. for the purchase of seven (7) New Diesel Electric Locomotives at a total cost not to exceed $37,695,000 with the last locomotive being delivered no later than December 31, 2014. Director Loux asked if last time we bought locomotives from Utah. Mr. Mudge said that we did buy them but then we couldn’t find any more anywhere else.
On motion duly made and seconded, it was unanimously;
VOTED: That, subject to approval of the Massachusetts Department of Transportation, and the completion of FTA Buy America audit requirements, 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 the form approved by General Counsel, to execute Change Order No. 1 to Formal Contract No. 671, with MotivePower, Inc., Boise, Idaho, for the purchase and delivery of seven (7) New Diesel Electric Locomotives (option I), at a total not to exceed delivered cost of $37,695,000.
The next item on the agenda presented by Randy Clarke is the authorization for approval to execute a contract with J. F. White Contracting Co. for Phase II of the Emergency Training Center within the abandoned tunnel near Broadway Station for a sum not to exceed $5,744,000.
On motion duly made and seconded, it was unanimously;
VOTED:That, subject to the approval of the Massachusetts Department of Transportation, the General Manager be, and hereby is, authorized to approve the execution in a form approved by General Counsel, of a contract with J. F. White Contracting Co., of Massachusetts to build the MBTA’s first responder emergency training center in the amount of $5,744,000; said company being the low responsive and responsible bidder in reply to an Invitation for Bids.
The next two items 11 and 12 on the agenda will be presented by Mark Boyle. Mr. Boyle requested the Authorization for approval to enter into a Ninety-Nine (99) year long lease agreement with the City of Lawrence for a portion of the abandonedManchester and Lawrence Branch Railroad Right of Way for use as a bike path.
On motion duly made and seconded, it was unanimously;
VOTED: That the General Manager be, and hereby is, authorized in the name of and on behalf of the Authority, and in a form approved by the General Counsel, to enter into a Ninety-nine (99) year Long Term Lease Agreement, and any and all other instruments deemed necessary for the long term lease of that certain section of abandoned railroad right of way know as the Manchester and Lawrence Branch, extending from Milepost 1.4 in Lawrence to the Methuen line consisting of approximately 1,400 linear feet or quarter mile and shown on Valuation Plans, V7.4, sheet 2 with the City of Lawrence, all for nominal consideration and solely for use as an Alternative Transportation Corridor open to the public. Said Lease Agreements and any other necessary instruments and documents shall contain such other terms and conditions as determined to be necessary and/or advisable by the General Counsel.