Quorum = 8 Agenda DART: Your preferred choice of transportation
for now and in the future. 0626C.docx 1 Dallas Area Rapid Transit
COMMITTEE-OF-THE-WHOLE Tuesday, June 26, 2012, 4:00 P.M. -
Conference Room C 1401 Pacific Ave., Dallas, TX 75202 General
Items: 1. Approval of Minutes: June 12, 2012 Items for Final
Committee Consideration: 2. Increase Contract Funding for the
Purchase of Small Low-Floor Compressed Natural Gas Buses (Security,
Safety, Public Relations & Operations Loretta Ellerbe/Carol
Wise) [5 minutes] @ 3. Addition of Belt Line Station to the Paid
Parking Demonstration and Call for Public Hearing to Establish
Related Parking Fees (Planning Pamela Dunlop Gates/Todd Plesko) [5
minutes] @ 4. Approval of Quarterly Disclosure Update as of March
31, 2012 (Budget and Finance Robert Strauss/David Leininger) [5
minutes] @ 5. Authorization to Increase Outstanding Commercial
Paper Issued to $400 Million (Budget and Finance Robert
Strauss/David Leininger) [5 minutes] @ 6. *Discussion on Selection
of DART General Counsel & Interviews (General Counsel Search Ad
Hoc Mark Enoch) [30 minutes] 7. +Authorize Waiver of Certain
Provisions of DART Board Rules of Procedures and DART Board Policy
V.01 for Scott Carlson Quorum = 8 Agenda DART: Your preferred
choice of transportation for now and in the future. 0626C.docx 2
Items For Initial Committee Consideration 8. Approval of the Fourth
Option Year for Annual Software Maintenance with Hansen Information
Technologies (Administrative Richard Carrizales/Jesse Oliver) [5
minutes] @ 9. Approval of the First Option Year for Annual Software
Maintenance with Trapeze Software Group, Inc. (Administrative
Richard Carrizales/Jesse Oliver) [5 minutes] @ 10. Contract for
Rail Advertising Services (Revenue Randall Chrisman/David
Leininger) [5minutes] @ 11. Contract to Rebuild Faiveley Light Rail
Vehicle Components (Security, Safety, Public Relations &
Operations Loretta Ellerbe/Carol Wise) [5 minutes] @ 12. Contract
Option for Bus and Light Rail Vehicle Paints (Security, Safety,
Public Relations & Operations Loretta Ellerbe/Carol Wise) [5
minutes] @ 13. Contract for Positive Train Control (PTC) Consultant
Services (Security, Safety, Public Relations & Operations
Loretta Ellerbe/Norma De La Garza-Navarro) [5 minutes] @ 14.
*Current and Future Regional Transportation Council Meeting Agenda
Items of Interest to DART (John Danish/Gary Thomas) [10 minutes]
Other Items: 15. Identification of Future Agenda Items 16.
Adjournment *Briefing item +Same Night Board Approval Item @
Unanimous Approval at Committee The Committee-of-the-Whole may go
into Closed Session under the Texas Open Meetings Act, Section
551.071, Consultation with Attorney, for any Legal issues, under
Section 551.072 for Real Estate issues, or under Section 551.074
for Personnel matters, or under section 551.076, for deliberation
regarding the deployment or implementation of Security Personnel or
devices, arising regarding any item listed on this Agenda. This
facility is wheelchair accessible. For accommodations for the
hearing impaired, sign interpretation is available. Please contact
Community Affairs at 214-749-2543, 48 hours in advance. AGENDA ITEM
NO.1 MINUTES DALLAS AREA RAPID TRANSIT COMMITTEE-OF-THE-WHOLE June
12, 2012 The Dallas Area Rapid Transit Committee--of-the--Whole
meeting convened on Tuesday, June 12, 2012, at 4:00 p.m., at DART
Headquarters, 1401 Pacific Avenue, Dallas, Texas, with Chair Danish
presiding. The following Board members were present: John Danish,
Loretta Ellerbe, Faye Moses Wilkins, Robert Strauss, Jerry
Christian, William Velasco, Pamela Dunlop Gates, Randall Chrisman,
William Tsao, Richard Carrizales, Claude Williams, Gary Slagel,
Scott Carlson, and Michael Cheney. Mr. Mark Enoch was absent.
General Items: 1. Approval of Minutes: May 22, 2012 Ms. Ellerbe
made a motion to approve the May 22, 2012, Committee-of-the-Whole
meeting Minutes with no additions, deletions or corrections. Mr.
Carlson seconded the motion and it was approved unanimously. Items
for Final Committee Consideration: 2. Initiation of Litigation to
Recover Property Damage Mr. Carrizales moved for approval of a
draft resolution stating the recommendation of the Interim General
Counsel to initiate litigation against Alexandra PollockJenkins to
recover property damage in Risk Management Claim No. D86461 is
approved. Ms. Ellerbe seconded the motion and it was approved
unanimously. 3. Contract for Bus Replacement Glass Ms. Ellerbe made
a motion to approve Agenda Items 3. - 7. Approval of a draft
resolution stating that the PresidentlExecutive Director or his
designee is hereby authorized to award a two-year contract, subject
to legal review and approval, for bus replacement glass to Prevost
Car (US), Inc., for a total authorized amount not to exceed
$353,758. 4. Exercise Contract Option for System-Wide Landscaping
Approval of a draft resolution stating that the PresidentlExecutive
Director or his designee is hereby authorized to execute a contract
option for system-wide landscaping with Valley Crest Landscape
Maintenance, Inc., [Contract No. C1014592-01] to: Section 1:
Exercise the final one-year option. 06.12.2012 COTW Minutes.docx
6118/2012; 8:00 A.M. Section 2: Increase the not-to-exceed amount
by $1,301,000, for a new total authorized amount not to exceed
$6,438,889. 5. Exercise Contract Option for Light Rail Vehicle
Brake Parts Approval of a draft resolution stating that the
PresidentlExecutive Director or his designee is hereby authorized
to exercise a contract option for light rail vehicle brake parts
with Wabtec Passenger Transit [Contract No. C-I018273] to: Section
1: Exercise the one-year option. Section 2: Increase the
not-to-exceed amount by $562,069, for a new total authorized amount
not to exceed $1,632,361. 6. Contract for Janitorial Services for
DART's Operating Facilities Approval of a draft resolution stating
that the PresidentlExecutive Director or his designee is hereby
authorized to award a two-year contract for janitorial services for
DART's operating facilities to Oriental Building Services in an
authorized amount not to exceed $920,833, plus an approximate 11%
contingency of $105,000, for a total authorized amount not to
exceed $1,025,833. 7. Exercise Contract Option and Increase Funding
for Light Rail Right-of-Way Grounds Maintenance and Landscaping
Approval of a draft resolution stating that the PresidentlExecutive
Director or his designee is hereby authorized to execute a contract
option for light rail right-of-way with Valley Crest Landscape
Maintenance, Inc., [Contract No. C-I016228-02] to: Section 1:
Exercise the first contract option in an amount not to exceed
$171,009. Section 2: Increase the funding in an amount not to
exceed $78,991, for a total not-to-exceed amount of $250,000.
Section 3: A new total authorized amount not to exceed $745,266.
Mr. Chrisman seconded the motion and it was approved unanimously.
8. Contract for Street Improvements at Keeneland Parkway between
Merrifield Road and Cherry Laurel Lane Mr. Carlson made a motion to
approve Agenda Items 8 - 9. Approval of a draft resolution stating
that the PresidentlExecutive Director or his designee is hereby
authorized to award a contract for street improvements at Keeneland
Parkway between Merrifield Road and Cherry Laurel Lane to Omega
Contracting, Inc., in the amount of $1,808,261 plus a supplemental
work contingency of $271,239 (150/0) for unanticipated expenses,
for a total authorized amount not to exceed $2,079,501. 9. Contract
for Street Improvements at Live Oak Street from East of
Good-Latimer Expressway to Liberty Street Approval of a draft
resolution stating that the PresidentlExecutive Director or his
designee is hereby authorized to award a contract for construction
improvements at Live Oak Street from East of Good-Latimer
Expressway to Liberty Street to Omega Contracting, Inc., in the
amount of $1,349,797, plus a supplemental work 06. 12.2012 COTW
Minutes.docx 2 6118/2012; 8:00 A.M. contingency of $202,469 (15%)
for unanticipated expenses, for a total authorized amount not to
exceed $1,552,266. Mr. Tsao seconded the motion and it was approved
unanimously. 10. +Aporoval to Provide for the Replacement of the
Revolving Credit Facility Provider Under Certain Conditions Mr.
Strauss moved for approval of a draft resolution stating that:
Section 1: The PresidentlExecutive Director or his designee is
authorized to replace the current Revolving Credit Facility
provider with a new provider(s) if the current provider's credit
downgrade negatively affects DART's commercial paper credit rating
or if the current provider allows DART to terminate the current
contract. Section 2: The replacement provider(s) must have a credit
rating of at least AlA2; the amount of the facility must not exceed
$150 million; and the estimated "all-in cost" of issuing commercial
paper notes may not exceed the estimated "all-in cost" of the
current facility. Section 3: Further action of the Board to approve
the agreements required to implement the replacement of the
Revolving Credit Facility provider is not required if the new
agreements are in substantially the form as the agreements that are
currently in effect. Mr. Cheney seconded the motion and it was
approved unanimously. Items for Initial Committee Consideration:
11. Addition of Belt Line Station to the Paid Parking Demonstration
and Call for Public Hearing to Establish Related Parking Fees Mr.
Todd Plesko, Vice President of Planning and Development, briefed
the Committee (see handout on file with the Office of Board
Support) as follows: Actions Taken Background of Paid Parking
Demonstration Board Approved Paid Parking Rates Issues Unique to
Belt Line Station Chair Danish remarked on the definition of
long-term parking. He asked if a customer parked overnight, they
would have to pay a fee for the overnight parking. Mr. Plesko
replied that the Board had stipulated that DART member-city
residents did not have to pay at the Parker Road or the North
Carrollton locations for overnight parking; that only applied to
non-residents. For clarification, Chair Danish inquired in regards
to the Belt Line station, if DallaslFort Worth (DFW) Airport will
not allow overnight parking. Mr. Plesko replied affirmatively. Mr.
Christian inquired what percentage DFW Airport was requesting for
their share of the revenue. Mr. Plesko responded that was currently
being negotiated by Mr. Chris Masters, Assistant Vice President of
Program Delivery, and Mr. Tim McKay, Executive Vice President of
Growth and Regional Developnlent. Location of Airport Parking
06.12.2012 COTW Minutes.docx 3 6118/2012; 8:00 A.M. Belt Line
Station Long Term Rate Recommendations Chair Danish asked how the
$7.00 parking fee compared to the other parking locations such as
The Spot. Mr. Plesko explained that The Spot charged $8.75 plus tax
and an access fee is 10% of the gross revenue, which, when
calculated, amounted to approximately $9.75 to $10.00. Ms. Ellerbe
remarked she had thought she heard Mr. Plesko comment that DFW
Airport would not allow overnight parking. Mr. Plesko restated his
answer by saying that the airport will permit overnight parking;
however, DART will have to charge for it and that would include the
DART member-city residents. Proposed Paid Parking Demonstration
Parking Rates Mr. Carlson asked if DART had to get the rates
approved by the DFW Airport. He understood that there was a need
for a public hearing, but he inquired if they needed to give its
consent. Mr. Plesko responded that they did not have to agree;
however, DART had discussed the concept of the range. Action Mr.
Strauss inquired what would prevent someone from parking further
down to avoid the charge. Mr. Plesko replied that they do not
foresee that occurring due to the locations of the other stations.
Chair Danish urged staff to think outside the box to come up with
innovate ideas. He felt that DART could make additional revenue by
finding ways to link up to the DFW airport. Mr. Carrizales asked
how DART determined who is a resident or not. Mr. Plesko replied
that the resident had to fill out an application for the parking
sticker. Mr. Carrizales then asked if the parking sticker is only
valid at the location the resident originally applied for. Mr.
Plesko replied that the parking sticker is valid at any DART
location that requires paid parking. Mr. Chrisman inquired what the
longevity of this test program was. Mr. Plesko replied that it
would last no longer than 2014. Mr. Chrisman inquired if Mr. Plesko
anticipated this being expanded to the other parking stations. Mr.
Plesko remarked that staff would present to the Board as to where
they feel it will make economic sense to do that. As far as the
decision to make paid parking more global, that would be a
DARTBoard decision. Chair Danish inquired of Ms. Ellerbe and Mr.
Chrisman in regards to the pilot programs, are there issues that
have come up or problems that they have begun to see in dealing
with their respective citizens. Ms. Ellerbe replied that she had
not heard any complaints. Mr. Chrisman replied that his only
concern was for those that parked overnight. Mr. Carrizales
inquired who was being targeted for the fee. Ms. Ellerbe stated
that DART was trying to make it equitable for DART member-cities.
Mr. Carrizales then asked Mr. Plesko if there would be a shuttle at
this location to take passengers to the airport. Mr. Plesko replied
yes, there would be a shuttle to meet each arriving train to take
them directly to Terminal A at the airport until the rail line is
extended all the way to Terminal A, at which point, the shuttles
will be pulled out. Mr. Carlson moved for approval of a draft
resolution stating that the PresidentlExecutive Director or his
designee is hereby authorized to: 06.12.2012 COTW Minutes.docx 4
6118/2012; 8:00 A.M. Section 1: Include Belt Line Station in the
Paid Parking Demonstration Project subject to the same parameters
defined in Board resolution 100086 approved on July 13, 2010; and
Section 2: Schedule and give notice of a public hearing to receive
public comments on imposing the rates for paid parking at DART
facilities approved by the Board to be included in the Paid Parking
Demonstration Project. Mr. Chrisman seconded the motion and it was
approved unanimously. 12. Approval of Quarterly Disclosure Update
as of March 31, 2012 Mr. Leininger gave a brief summary to the
Committee. Mr. Strauss moved for approval of a draft resolution
stating that the PresidentlExecutive Director or his designee is
hereby authorized to issue the Quarterly Disclosure Update dated
June 26, 2012, in substantially the same form as shown in Exhibit 1
to this Resolution. Mr. Cheney stated that he would remove his
previous concerns regarding some of the financial matters since
they had been clarified. Mr. Cheney seconded the motion and it was
approved unanimously. 13. Authorization to Increase Outstanding
Commercial Paper Issued to $400 Million Mr. Leininger gave a brief
summary to the Committee. He stated that this authorization will
allow DART to add to its short term borrowing capacity and allows
it to use the Commercial Paper (CP) over a five year time. He felt
this was a very prudent way for DART to manage its cash over the
next several years. Mr. Strauss inquired, in regards to the current
CP outstanding balance, how long has it been outstanding. Mr.
Leininger responded approximately three and half years, although,
it would be retired. Mr. Chrisman asked when are the bus payments
due. Mr. Leininger stated that DART would begin receiving delivery
of the buses in the fall, so shortly thereafter. Mr. Chrisman asked
how much interest is added. Mr. Leininger replied that DART was pro
bably in the one percent range. Mr. Tsao requested further
information to understand the relationship between this credit
facility versus DART's financial plan. Mr. Leininger stated that
the $750M is a plan authorization level that the Board established
and is reviewed with the Attorney General's office. He explained
that the financial plan establishes how much of that DART is able
to use. Mr. Tsao then asked if the capacity of the CP is related to
the bond validation litigation. Mr. Leininger replied no, then
explained that the Commercial Papers is short term debt and is not
linked to the bond validation suit except for staff proposing to
retire the current $150M using the long term debt, which is the
normal way to retire Commercial Papers. Mr. Strauss moved for
approval of a draft resolution stating that: Section 1: The
PresidentlExecutive Director or his designee is authorized to
increase outstanding commercial paper issued to $400 million.
06.12.2012 COTW Minutes.docx 5 6118/2012; 8:00 A.M. Section 2:
Final Board approval of the documents to implement this increase
will be required. Mr. Cheney seconded the motion and it was
approved unanimously. 14. *Review ofFY 2012 Second Quarter
Operating & Financial Performance Report Mr. Leininger
introduced Ms. Sarah Fontenot, Senior Manager of Expense Budgeting,
who briefed the Committee (see handout on file with the Office of
Board Support) as follows: FY 2012 Second Quarter Operating FY 2012
YTD Highlights FY 2012 KPI Highlights FY 2012 Second Quarter
Revenue Summary FY 2012 Second Quarter Expenditure Summary FY 2012
Quarter 2 Agency Scorecard Mr. Cheney inquired what is the
quarterly value. Ms. Fontenot explained that the quarterly is the
period of January through March whereas the other two are four
quarter rolling numbers. FY 2012 Quarter 2 Ridership Results Mr.
Strauss asked if DART had done any analysis for the decline of the
bus ridership. Ms. Fontenot replied yes, although, she would need
to get a more detailed answer from the ridership team after the
meeting. Mr. Leininger interjected that as a whole bus service was
up from year to year. Mr. Carrizales inquired how ridership is
counted. Mr. Leininger replied ridership is counted by trips. Ms.
Ellerbe asked how is it counted on the rail. Mr. Leininger remarked
that there was a light rail counting sampling process that is used.
Mr. Christian asked if DART goes to the new system of buying on
pass and transferring between modes, how will the ridership be
counted at that point. Mr. Leininger replied that it would be
tracked as two trips. Mr. Christian voiced his concern that the
revenue and numbers of trip would be imbalanced. Ms. Ellerbe
inquired if the information was available in regards to her
previous question on fare increase since the security visibility
had began. Mr. Leininger replied that the report had been created
and he would make sure that it was included in the President's
packet to the Board. Chair Danish requested Mr. Leininger enlighten
the Committee on the views of the public hearing that occurred in
Irving. Mr. Leininger remarked that DART had received many positive
responses. FY 2012 Quarter 2 Subsidy Per Passenger Chair Danish
asked when does the new number on Paratransit show up. Ms. Fontenot
replied that would be for Fiscal Year 2013. 06.12.2012 COTW
Minutes.docx 6 6118/2012; 8:00 A.M. 15. *In-Transit Customer
Communications Update Mr. Allan Steele, briefed the Committee (see
handout on file with the Office of Board Support) as follows: In
Transit Customer Communications: Program Goals (est.) History of
DART Online Website Statistics Portfolio of Customer Communications
Tools Mobile Web App Tools Mr. Lawrence Sutton, Web Developer II,
gave a live demonstration as follows: Cell-phone application Chair
Danish asked if anyone would pay DART to advertise their business
if the site has half a million hits. Mr. Sutton remarked that it
was a decision that Marketing and Media Relations would be able to
speak to; however at this time, there were no advertisements on
DART.org. Chair Danish then asked if DART was prohibited from
selling advertisement sections. Mr. Sutton replied no. Mr. Cheney
asked how quickly is the information updated during an emergency
situation for a rider to be able to access the information that
notifies him why his mode of transportation is not moving. Mr.
Sutton responded that it would depend on the time the information
is given to media relations to post on the Rider Alert section of
the application. Mr. Cheney then asked how often is that updated.
Mr. Steele replied that if there is a delay longer than ten minutes
on a rail, they place it on the Rider Alert and update it
periodically as needed to give customers information. Mr. Cheney
remarked that he would like to receive periodic information on
these technical features and upgrades. Mr. Steele stated he would
make sure he was notified. Ms. Dunlop Gates entered the meeting at
5:18 p.m. Operations Communications Liaisons Email/Text Alerts Mr.
Gary Thomas, PresidentlExecutive Director, remarked that the text
messagIng feature could also be used through non-smart phones. Mr.
Carrizales inquired if the mobile features were in Spanish
language. Mr. Steele replied that only the main website was in
Spanish. Mr. Carrizales remarked that the Google platform did
translate it into Spanish and it may be a good starting point for
DART. Mr. Steele responded that it was an option they could
revisit. Mr. Chrisman remarked that Mr. Steele had mentioned that
DART and the Denton County Transit Authority (DCT A) were reporting
to each other and this is going to be integrated. He then asked in
regards to Mr. Cheney'S request regarding emergency alerts, if this
was already in effect. Mr. Steele replied, no, that was the part
that staff was still working on to get coordinated. Tools In
Development Next Stop/ Transit Information Screens on New Buses
06.12.2012 COTW Minutes.docx 7 6/18/2012; 8:00 A.M. Mr. Chrisman
interjected with a question regarding the possibility of buying a
pass using a mobile phone. Mr. Steele clarified that was a feature
that DART was working on, although, it was not yet available. Mr.
Chrisman inquired if all types of passes would be included. Mr.
Steele replied, no, there would be a limited number of passes. He
then stated that they would be bringing forth a presentation in the
near future. In reference to the stafIworking these shifts, Mr.
Chrisman asked if the two staff members had a backup for the
shifts. Mr. Steele replied that they were each others' backup. Mr.
Chrisman clarified his question by asking in regards to vacation
time or unscheduled time, how is that covered. Mr. Steele responded
that when that occurs, they will have someone from the main center
cover the shift. Digital Dashboard Public Address/ Variable Message
Boards (P AlVMP) Mr. Tsao inquired if there was a way that the
general public could be made aware of all the tools and features
DART had to offer. Mr. Steele replied yes, it was called On the
Golln the Know. Mr. Tsao remarked that his question was more in
regards to the non riding populations. Mr. Tsao felt there was a
better possibility of higher ridership if the non-riding population
had more information on what was out there for them. He commented
that this was an excellent feature and should be advertised more.
Mr. Nevin Grinnell, Vice President/Chief Marketing Officer, replied
that staff would review the marketing section for this. Mr. Cheney
inquired if there was any advertisement for the high schools and
college schools in the area. Mr. Steele replied that there was an
outreach program for the schools that was in place. Mr. Christian
inquired if the Committee-of-the-Whole could have a briefing,
possibly in closed session, as a future agenda item to discuss how
DART will handle a major catastrophe regarding the communication
and information. Mr. Steele stated there was a process separate
from this feature, mDART.org, and they would bring that information
forth. Chair Danish agreed with Mr. Christian's request. Mr.
Williams entered the meeting at 5 :34 p.m. 16. *Overview of
Communications and Promotional Activities Planned for the Orange
Line Opening in July 2012 Mr. Grinnell, introduced Mr. Vincent
Silmon, Manager of Marketing and Account Services, who briefed the
Committee (see handout on file with the Office of Board Support) as
follows: Orange Line 1-1 Opening Orange line Agenda Orange Line
Opening Strategic Plan (Chart) The Orange Line to Irving/Las
Colinas Print Collateral Station & Street Banners Advertising
Campaign Outdoor Advertising 06.12.2012 COTW Minutes.docx 8
6/1812012; 8:00 A.M. Chair Danish gave the explanation for the
symbolism of the gold door and the shadow of the Rail doors. Joint
Promotions Advertising Media Plan Grand Opening Overview Mr. Cheney
left the meeting at 5:42 p.m. Community Engagement Corporate
Penetration Next Steps Thank you Other I terns: 17. Identification
of Future Agenda Items Ms. Wilkins requested that the Board
reconsider the possibility of having a special
Con1ll1ittee-of-the-Whole (COTW) meeting on a Saturday to discuss
the General Counsel Search candidates. Chair Danish stated that a
briefing would be given at the June 26th COTW in regards to the
General Counsel search to determine the date of a special COTW
meeting. 18. Adjournment There being no further business to
discuss, the meeting was adjourned at 5:56 p.m. J osefina Chavira,
CAP Board/Committee Secretary /jc + Same Night Item * Briefing Item
06.12.2012 COTW Minutes.docx 9 6/18/2012; 8:00 A.M. Agenda
ReportCommittee-of-the-Whole Attachments:1. Increase
FundingAnalysis2. D/M/WBE DetailsVoting Requirements:MajorityDATE:
June 26, 2012SUBJECT:Increase Contract Funding for the Purchase of
Small Low-Floor CompressedNatural Gas BusesRECOMMENDATIONApproval
of a resolution authorizing the President/Executive Director or his
designee, subject to legalsufficiency review and approval, to
increase contract funding for the purchase of small
low-floorcompressed natural gas (CNG) buses with National Bus Sales
and Leasing, Inc., (Contract No.C-1020819-01) by a total
not-to-exceed amount of $891,275, for a new total authorized amount
not toexceed $25,987,275; and authorizing the President/Executive
Director to execute necessary contractmodifications with National
Bus Sales and Leasing, Inc.COMMITTEE CONSIDERATIONS. On June 12,
2012 the Security, Safety, Public Relations & Operations
Committee unanimouslymoved to forward this item to the June 26,
2012 Committee-of-the-Whole for FinalConsideration.FINANCIAL
CONSIDERATIONS. Funding for this contract increase is included in
the Bus Fleet Replacement program budget of theapproved FY 2012
Capital Budget.. Sufficient funding for this contract in the amount
of $891,275 is included in both the Bus FleetReplacement program
budget and the Bus Capital line item of the FY 2012
Twenty-YearFinancial Plan.. This contract increase may be federally
funded in the approximate amount of $713,020 which is80% of the not
to exceed amount of $891,275. The local share of this acquisition
may be paidwith local funds or financed by debt.BUSINESS PURPOSE.
The purchase of 123, 26-foot low-floor CNG-powered buses is needed
to replace some of theexisting Nova vehicles which have met or
exceeded their prescribed useful life; to support thecontinued
reliable operation of DART bus services; to support the
implementation of BoardAGENDA ITEM NO.
2IncreasingFundingforARBOCBuses-COTW2 6/13/20122:37:06PM
1resolution to transition the DART bus fleet to the use of CNG fuel
(Resolution No. 090166); tosupport the expansion of the innovative
service delivery concept (FLEX and On-Call); and thecontinued
deployment of level boarding services throughout the DART service
area.. During Board deliberations of the NABI contract award in
early 2011, staff was requested torefresh the evaluation of
security camera technologies specifically focusing on live
remotemonitoring, which was not part of the requirements at that
time. This evaluation was in processduring the Board deliberations
of the ARBOC contract award in September, 2011 and securitycameras
were not included in the initial ARBOC requirements.. The security
camera evaluation was completed in April, 2012 and negotiations
with the busmanufacturers for incorporation of the Dedicated Micros
security camera system including liveremote monitoring and 4G/LTE
communications technologies have been completed.. The incorporation
of this camera system as part of this contract will cost no more
than $1,729,408to outfit the FLEX buses (112) purchased under this
contract. There are adequate funds in theproject budget to support
this increase. However, additional contract authority is required
asoutlined in the below table:$25,096,000 Original Contract
Authority$24,257,867 Existing Contract Obligations$838,133
Remaining Contract Authority$1,729,408 Dedicated Micros Camera
System$891,275 Required Additional Contract Authority. Delivery of
these buses will be in late FY 2012 and early FY 2013 to support
the expandeddeployment of innovative bus services scheduled for
early FY 2013.. The following table identifies the history of this
contract from date of award:Date Action ContractChangeAmountTotal
BoardAuthorizedAmount9/27/11 Board authorized contractResolution
No. 110106 $25,096,000. Approval of this contract will help to
achieve Board Strategic Priority II: Manage SystemDevelopment and
Maintain Infracstructure.PROCUREMENT CONSIDERATIONS. The contract
term is one year. This action involves increasing contract funds..
The pricing shall be fair and reasonable.. The contract
modification analysis is provided as Attachment
1..IncreasingFundingforARBOCBuses-COTW2 6/13/20122:37:06PM 2D/M/WBE
CONSIDERATIONS. The purchase of small low-floor CNG buses has
federal and local funding; and the purchase isbeing made from a
transit vehicle manufacturer. DART does not set goals on the
federally fundedportion of a transit vehicle manufacturer (TVM)
purchase as such goals are the result of anagreement between the
manufacturer and the Federal Transit Administration (FTA). National
BusSales and Leasing, Inc. has submitted their certification that
its "established goal was approved, ornot disapproved" by the FTA.
This is the standard certification language used in TVM purchases..
For the local funding, DART has established a 10% MWBE
participation goal. National BusSales and Leasing, Inc., has
committed to exceed the goal.. The M/WBE analysis and Equal
Employment Opportunity (EEO-1) information are included
inAttachment 2. The prime contractor's actual EEO-1 report is
available upon request.LEGAL CONSIDERATIONS. Section 452.056 of the
Texas Transportation Code authorizes DART to acquire,
construct,develop, plan, own, operate, and maintain a public
transportation system.. Section 452.055 of the Texas Transportation
Code authorizes DART to contract for the provisionof goods and
services.. Section 791.025 of the Texas Government Code authorizes
DART to purchase goods and servicesby agreement with other units of
government and thereby satisfy the requirement to seekcompetitive
bids for the purchase of those goods and services.. DART Board
Policy III.12 DART Clean Fleet Vehicle Policy, requires that
replacement vehiclesshall achieve at least a 25% reduction in NOx
emissions compared to the vehicles being replaced.. Section
3.205.01 and 3.205.02.2(a)(b) of the DART Procurement Regulations
authorizes DARTto contract for property, services or construction
without competition.IncreasingFundingforARBOCBuses-COTW2
6/13/20122:37:06PM 3Attachment 1 Dallas Area Rapid Transit
Authority CONTRACT FUNDING ANALYSIS Modification No. 2 Contract
Information A. Contract Description: Small Low-Floor Compressed
Natural Gas Buses B. Contractor: National Bus Sales & Leasing,
Inc. C. Contract Number: C-1020819-01 D. Contractual Action:
Increase Funding E. Current Authorized Contract Funding:
$25,096,000 F. Increase Contract Funding: $891,275 G. New
Authorized Contract Funding Amount: $25,987,275 H. Contract Type:
Definite Delivery/Definite Quantity I. Current Term of
Contract/Performance Period: One year J. Remaining Options
Available: None K. Price Considerations: This is an increase in
contract amount only. In a competition that included three
suppliers, the Dedicated Micros system was selected for ARBOC and
NABI buses to ensure vehicle fleet uniformity. DART analyzed the
cost proposal factors such as shop labor rates, shipping, and
profit provided by National Bus Sales. Based on the information
provided, it is determined that the not-to- exceed price of
$1,729,408 is fair and reasonable. L. Negotiation Memorandum:
Available for review in the contract file. M. Determinations
Required: None N. Funding: Federal and Local O. Determination of
Responsibility: Bond Check: N/A Reference Check: Satisfactory
Financial Responsibility Survey: Satisfactory Insurance Check: Yes
Debarred/Suspended list: Not on the debarred/suspended list
Determination and Recommendation National Bus Sales & Leasing,
Inc., is determined to be a responsible contractor for the
modification described above. Therefore, execution of the contract
funding increase is recommended. Increasing Funding for ARBOC
Buses-COTW2 6/13/2012 2:37:06 PM 1Attachment 2 Increase Contract
Funding for the Purchase of Small Low-Floor Compressed Natural Gas
Buses D/M/WBE CONSIDERATIONS The purchase of small low-floor CNG
buses has federal and local funding; and the purchase is being made
from a transit vehicle manufacturer. DART does not set goals on the
federally funded portion of a transit vehicle manufacturer (TVM)
purchase as such goals are the result of an agreement between the
manufacturer and the Federal Transit Administration (FTA). National
Bus Sales and Leasing, Inc. has submitted their certification that
its "established goal was approved, or not disapproved" by the FTA.
This is the standard certification language used in TVM purchases.
For the local funding, DART has established a 10% MWBE
participation goal. National Bus Sales and Leasing, Inc., has
committed to exceed the goal utilizing the following certified
firm: MBE PARTICIPATION VENDOR LOCATION ETHNICITY SERVICES AMOUNT %
B & D Fleet Services Mesquite, TX Hispanic Male Bus painting
and graphic work $430,500 10.77% TOTAL MBE PARTICIPATION: $430,500
10.77%* Note: The M/WBE goal is based on funding of $3,998,399. If
there are any changes, the original goal will apply. * The
percentage and dollar amounts may remain level, increase or
decrease depending on the circumstances. Summary of EEO-1
Information National Bus Sales & Leasing, Inc., is located in
Marietta GA. and employs 64 individuals. The following is an
analysis of their EEO-1 report: ASIAN BLACK HISPANIC NATIVE AM.
WHITE TOTAL Percentage MALES 0 8 4 1 29 42 65.63% FEMALES 0 2 0 0
20 22 34.37% TOTAL 0 10 4 1 49 64 100% PERCENTAGE 0.00% 15.63%
6.25% 1.56% 76.56% 100% Increasing Funding for ARBOC Buses-COTW2
6/13/2012 2:37:06 PM 1DRAFTRESOLUTIONof theDALLAS AREA RAPID
TRANSIT BOARD(Executive Committee)Increase Contract Funding for the
Purchase of Small Low-Floor Compressed Natural GasBusesWHEREAS, the
purchase of 123, 26-foot low-floor compressed natural gas (CNG)
powered buses isneeded to replace some of the existing Nova
vehicles which have met or exceeded their prescribeduseful life; to
support the continued reliable operation of DART bus services; to
support theimplementation of Board resolution to transition the
DART bus fleet to the use of CNG fuel(Resolution No. 090166); to
support the expansion of the innovative service delivery concept
(FLEXand On-Call); and the continued deployment of level boarding
services throughout the DART servicearea; andWHEREAS, the security
camera evaluation was completed in April 2012, and negotiations
with thebus manufacturers for incorporation of the Dedicated Micros
security camera system including liveremote monitoring and 4G/LTE
communications technologies has been completed; andWHEREAS,
delivery of these buses will be in late FY 2012 and early FY 2013
to support theexpanded deployment of innovative bus services
scheduled for early FY 2013; andWHEREAS, the proposed price for
this contract increase is determined to be fair and reasonable;
andWHEREAS, this contract increase may be federally funded in the
approximate amount of $713,020which is 80% of the not to exceed
amount of $891,275. The local share of this acquisition may bepaid
with local funds or financed by debt; andWHEREAS, funding for this
contract increase is within current Budget and FY 2012
Twenty-YearFinancial Plan allocations.NOW, THEREFORE, BE IT
RESOLVED by the Dallas Area Rapid Transit Board of Directors,
thatthe President/Executive Director or his designee is authorized,
subject to legal sufficiency reviewand approval, to execute an
increase in the contract for the purchase of small low-floor CNG
buseswith National Bus Sales and Leasing, Inc., [Contract No.
C-1020819-01] to increase contract fundingby $891,275 for a new
total authorized amount of $25,987,275 and authorizing
thePresident/Executive Director to execute necessary contract
modifications with National Bus Salesand Leasing, Inc.Increasing
Funding for ARBOC Buses-COTW2 1Increase Contract Funding for the
Purchase of Small Low-Floor Compressed Natural Gas Buses Prepared
by: Michael C. Hubbell Vice President Carol Wise Approved by:
Executive Vice President Approved as to fonn: Approved by" Chie
Operating Offic Increasing Funding for ARBOC Buses 2 Agenda
ReportCommittee-of-the-Whole Voting Requirements:MajorityDATE: June
26, 2012SUBJECT:Addition of Belt Line Station to the Paid Parking
Demonstration and Call forPublic Hearing to Establish Related
Parking FeesRECOMMENDATIONApproval of a resolution authorizing the
President/Executive Director or his designee to (1) includeBelt
Line Station in the Paid Parking Demonstration subject to the
parameters defined in ResolutionNo. 100086 approved on July 13,
2010; and (2) call a public hearing to receive public comments on
therates for paid parking at any DART facility specifically
approved by the Board to be included in thepaid parking
demonstration.COMMITTEE CONSIDERATIONS. On May 22, 2012 the
Planning Committee unanimously moved to forward this item to the
June12, 2012 Committee-of-the-Whole for Initial Consideration.. On
June 12, 2012 the Committee-of-the-Whole unanimously moved to
forward this item to theJune 26, 2012 Committee-of-the-Whole for
Final Consideration.FINANCIAL CONSIDERATIONS. The approval of paid
parking fees at Belt Line Station is expected to generate
additional revenuesfor DART.BUSINESS PURPOSE. This resolution will
help DART achieve the Board Strategic Priority II: Manage
SystemDevelopment & Maintain Infrastructure.. On July 13, 2010
(Resolution No. 100086), the Board authorized the Executive
Director or hisdesignee to implement a Paid Parking Demonstration
Project at Parker Road Station andFrankford/ North Carrollton
Station. Northwest Plano Park & Ride was added to the paid
parkingdemonstration on January 24, 2012 (Resolution No. 120007)..
The Board resolutions established the parameters required to
implement a demonstration of paidparking as an alternative to new
parking lot construction, to manage demand, and generateadditional
revenue for DART provided the program revenue exceeds the cost of
implementing theprogram.AGENDA ITEM NO.
3ParkingRates/BeltLineStation-COTW2 6/13/20122:39:00PM 1. On Dec.
3, 2012, DART will begin direct shuttle service to DFW Airport from
the Belt LineStation and Orange Line rail service from the new Belt
Line Station to the Dallas central businessdistrict. Like the
stations at N. Carrollton-Frankford and Parker Road Stations, the
majority ofcommuter demand for Orange Line from Belt Line Station
will be from non-residents.. Additionally, due to the proximity of
the Belt Line Station to DFW Airport, there will beconsiderable
demand for long term parking. Under the terms of the agreement with
DFW for theuse of the land on which the Belt Line Station is
constructed, DART will not be able to offer freelong term parking.
To insure that the commuter parking is not fully consumed by long
termairport parking customers, the Board will consider including
Belt Line in the paid parkingdemonstration to manage the
availability of parking.. While the Board has approved the rates
for the paid parking demonstration at NCarrollton-Frankford, Parker
Road, and will approve the final rates for NW Plano Park & Ride
onMay 22, 2012, the Board will consider adopting paid parking rate
for all stations approved by theBoard to be included in the
demonstration. The rates will include rates for long term
parkingspecifically for Belt Line Station. Other than the Belt Line
Long Term Parking rates, the paidparking rates will remain the same
as those approved for Parker Rd and N.
Carrollton-FrankfordStation.. A public hearing is required to
obtain comments on the proposed rates for Belt Line Station priorto
adopting a uniform paid parking rate structure for any DART Station
or bus facility approvedfor inclusion in the demonstration.. The
approach to operating and enforcing paid parking for residents and
non residents will beidentical to the approach in place at Parker
Road or at N. Carrollton-Frankford Stations.LEGAL
CONSIDERATIONSSection 452.061 of the Texas Transportation Code
authorizes DART to impose reasonable andnon-discriminatory fares,
tolls, charges, rents and other compensation for the use of the
publictransportation system. The section also authorizes DART to
set the compensation for use of the publictransportation system,
including parking fees and passenger transportation fares,
according to a zonesystem or to another classification that DART
determines to be reasonable.Section 452.115 of the Texas
Transportation Code required that DART conduct a public hearing
priorto changing any fares or parking fees. Section 452.118
specifies that the notice of a public hearingmust be published at
least 30 days before the date of the
hearing.ParkingRates/BeltLineStation-COTW2 6/13/20122:39:00PM
2DRAFTRESOLUTIONof theDALLAS AREA RAPID TRANSIT BOARD(Executive
Committee)Addition of Belt Line Station to the Paid Parking
Demonstration and Call for PublicHearing to Establish Related
Parking FeesWHEREAS, on July 13, 2010 (Resolution No. 100086), the
Board authorized thePresident/Executive Director or his designee to
implement a Paid Parking Demonstration Projectat Parker Road and
Frankford/North Carrollton Stations; andWHEREAS, the location of
the new Belt Line Station to DFW Airport and the projected
demandfrom non service area cities, it is both feasible and
advisable to expand the Paid ParkingDemonstration project to the
Belt Line Station scheduled for opening on July 30, 2012;
andWHEREAS, the parking vendor has agreed to include the paid
parking demonstration to Belt LineStation at no cost to DART with
the possibility of additional revenue to DART; andWHEREAS,
implementing paid parking rates at Belt Line requires that DART
call a publichearing to offer the public an opportunity of provide
comments on a proposal to amend its fares toinclude paid parking at
any DART facility approved by the Board using the proposed
parkingrates shown as Exhibit 1; andWHEREAS, approval of paid
parking rates is expected to generate additional revenues for
DART.NOW, THEREFORE BE IT RESOLVED by the Dallas Area Rapid Transit
Board of Directorsthat the President/Executive Director or his
designee is authorized to:Section 1: Include Belt Line Station in
the Paid Parking Demonstration Project subjectto the same
parameters defined in Board resolution 100086 approved on July13,
2010; andSection 2: Schedule and give notice of a public hearing to
receive public comments onimposing the rates for paid parking at
DART facilities approved by the Boardto be included in the Paid
Parking Demonstration Project.Parking Rates / Belt Line
Station-COTW2 1Addition of Belt Line Station to the Paid Parking
Demonstration and Call for Public Hearing to Establish Related
Parking Fees Prepared by: T Vice President Planning and Development
Approved by: ---n_l\ A:Jfi Timothy H. McKay, .E. Executive Vice
President Growt !Regional Development Approved as to form: Approved
by: Parking Rates / Belt Line Station 2 Exhibit 1 Proposed Paid
Parking Demonstration Parking Rates5Type of ParkingFee for Vehicles
Displaying Resident Parking PassFee for Vehicles Without a Valid
Resident Parking PassDaily Parking No Fee $2.00Daily Event Parking
No Fee $4.00Long Term Parking at Stations other than Belt Line
StationNo Fee $5.00 per day MaximumLong Term Parking at Belt Line
Station (more than 18 hours)$7.00 per day Maximum $9.00 per day
MaximumMonthly Unreserved Parking No Fee $40.00Monthly Reserved
Parking $30.00 maximum $60.00 maximum Parking Rates / Belt Line
Station-COTW2 6/13/2012 2:39:00 PM 1Agenda
ReportCommittee-of-the-Whole Voting Requirements:MajorityDATE: June
26, 2012SUBJECT: Approval of Quarterly Disclosure Update as of
March 31, 2012RECOMMENDATIONApproval of a resolution authorizing
the issuance of a Quarterly Disclosure Update as of March 31,2012
to the 2012 Annual Disclosure Statement in substantially the same
form as shown in Exhibit 1 tothe Resolution.COMMITTEE
CONSIDERATIONS. On May 22, 2012 the Budget and Finance Committee
moved to forward this item to the June 12,2012
Committee-of-the-Whole for Initial Consideration.. On June 12, 2012
the Committee-of-the-Whole unanimously moved to forward this item
to theJune 26, 2012 Committee-of-the-Whole for Final
Consideration.BUSINESS PURPOSE AND FINANCIAL CONSIDERATIONS. On
January 23, 2001, the Board approved the Master Debt Resolution
(Resolution No. 010014)and the First Supplemental Debt Resolution
(Resolution No. 010015). The Master DisclosureStatement and an
Updated Disclosure Statement were approved as part of the First
SupplementalDebt Resolution.. The Master Disclosure Statement is
DART's representation to the investing community regardingDART.
This document is based on SEC best practices and exceeds normal
disclosure documents.This Statement is amended annually by DART..
On March 6, 2012 (Resolution No. 120026), the Board approved the
2012 Annual DisclosureStatement.. On April 24, 2012 (Resolution No.
120052), the Board approved the Quarterly Disclosure Updatefor the
quarter ending December 31, 2011.. The Quarterly Disclosure Update,
dated June 26, 2012, provides updated unaudited
financialinformation about DART, as of March 31, 2012, and will be
made available to potential investorsand on the DART website at
www.DART.org.. The discussion will help achieve the Board's
Strategic Priority of Managing System Developmentand Maintaining
Infrastructure.AGENDA ITEM NO. 4FY12-2QQDU-COTW2 6/13/20122:41:28PM
1LEGAL CONSIDERATIONS. Section 452.054 of the Texas Transportation
Code authorizes DART to exercise all powersnecessary or convenient
to carry out the purposes or the provisions of the statute..
Section 452.352 of the Texas Transportation Code authorizes DART to
issue bonds.FY12-2QQDU-COTW2 6/13/20122:41:28PM 2DRAFT RESOLUTION
of the DALLAS AREA RAPID TRANSIT BOARD (Executive Committee)
Approval of Quarterly Disclosure Update as of March 31, 2012
WHEREAS, on January 23, 2001, the Board approved the Master Debt
Resolution (Resolution No. 010014) and the First Supplemental Debt
Resolution (Resolution No. 010015). The Master Disclosure Statement
and an Updated Disclosure Statement were approved as part of the
First Supplemental Debt Resolution; and WHEREAS, on March 6, 2012
(Resolution No. 120026), the Board approved the 2012 Annual
Disclosure Statement; and WHEREAS, on April 24, 2012 (Resolution
No. 120052), the Board approved the Quarterly Disclosure Update for
the quarter ending December 31, 2011; and WHEREAS, DART desires to
provide information to the investing community regarding the
issuance of bonds; and WHEREAS, DART desires to update the
information in the 2012 Annual Disclosure Statement and any
Supplemental Disclosure Statements on a quarterly basis. NOW,
THEREFORE, BE IT RESOLVED by the Dallas Area Rapid Transit Board of
Directors that the PresidentlExecutive Director or his designee is
authorized to issue the Quarterly Disclosure Update dated June 26,
2012, in substantially the same form as shown in Exhibit 1 to this
Resolution. avid Leininger Executive Vice President Chie inancial
Officer Approved as to form: Approved by: V - - - J ~ ~ ~ ~ ~ ~ ~ -
- ~ ~ - - - -FYI2-2QQDU Exhibit 1 DALLAS AREA RAPID TRANSIT
Quarterly Disclosure Update for the six-month period ended March
31, 2012 _____________________________________ This Quarterly
Disclosure Update supplements the information contained in our 2012
Annual Disclosure Statement dated March 6, 2012 (the 2012 Annual
Disclosure Statement) and our Quarterly Dislcosure Update for the
three-month period ending December 31, 2011 dated April 24, 2012
that has been filed as a public record with the Municipal
Securities Rulemaking Boards website at www.emma.msrb.org, and is
posted on the Internet at our website, www.dart.org. You may also
obtain a free copy of this Quarterly Disclosure Update by
contacting us at the following address or telephone number:
Executive Vice President/Chief Financial Officer, DART, 1401
Pacific Avenue, Dallas, Texas 75202, (214) 749-3148.
_______________________________________ GENERAL We are posting and
filing this Quarterly Disclosure Update to supplement our 2012
Annual Disclosure Statement dated March 6, 2012 and our Quarterly
Disclosure Update for the three-month period ending December 31,
2011 dated April 24, 2012. We continue to reserve the right to
suspend or stop the postings on the Internet and the quarterly
updates at any time. However, we will always provide the annual and
periodic information called for under any undertaking made in
compliance with Rule 15c2-12 under the Securities Exchange Act of
1934. Whenever we use capitalized words in this Quarterly
Disclosure Update, they refer to the defined terms that are found
in or incorporated by reference in the 2012 Annual Disclosure
Statement. See, 2012 Annual Disclosure Statement, Appendix B,
SUMMARY OF CERTAIN TERMS OF MASTER DEBT RESOLUTION. In this
Quarterly Disclosure Update, we, our, us, and DART refer to Dallas
Area Rapid Transit, a subregional transportation authority under
the Act. The information in this Quarterly Disclosure Update is as
of the date stated below, except for the unaudited financial
information included herein as Exhibit A, which is for the
six-month period ended March 31 2012 . YOU SHOULD CAREFULLY
CONSIDER THE INVESTMENT CONSIDERATIONS IN THE 2012 ANNUAL
DISCLOSURE STATEMENT. FORWARD-LOOKING STATEMENTS We make
forward-looking statements in the 2012 Annual Disclosure Statement
and in Quarterly Disclosure Updates by using forward-looking words
such as may, will, should, intends, expects, believes, anticipates,
estimates, or others. You are cautioned that forward-looking
statements are subject to a variety of uncertainties that could
cause actual results to differ from the projected results. Those
risks and uncertainties include general economic and business
conditions, conditions in the financial markets, our financial
condition, our sales tax revenues, receipt of federal grants, and
various other factors that are beyond our control. Because we
cannot predict all factors that may affect future decisions,
actions, events, or financial circumstances, what actually happens
may be different from what we include in forward-looking
statements. _____________________________ Dated: June 26, 2012
FY12-2Q QDU-COTW2 6/13/2012 2:41:28 PM 1Exhibit 1 QUARTERLY
DISCLOSURE UPDATE The 2012 Annual Disclosure Statement dated March
6, 2012 and Quarterly Disclosure Update dated April 24, 2012, are
updated by the following supplemental information: Unaudited
Financial Information Audited financial statements for our fiscal
year ended September 30, 2011, are attached as Appendix A to the
2012 Annual Disclosure Statement. An unaudited statement of our
principal accounts for the six-month period ended March 31, 2012
and March 31, 2011 is included as Attachment A to this Quarterly
Disclosure Update. Such quarterly financial statements should be
read in conjunction with our annual financial statements. This
information is taken from our internal books and records that are
created, maintained, and administered by DART in accordance with
generally accepted accounting principles. The use of reasonable
estimates is a normal part of the preparation of financial
statements. Sales tax revenues included in the unaudited quarterly
financial statements were accrued using estimates. Actual sales tax
receipts could, therefore, differ from those reported in the
quarterly financial statements. We believe that the unaudited
financial information for the six-month period ended March 31,
2012, fairly represents the financial position and operating
results of DART and is complete as of, but no later than, such
date. However, you are cautioned that such financial information
has not been audited or reviewed by any independent accountants. We
do not warrant or guarantee that subsequent audited information for
these accounts for this six-month period will not differ from the
unaudited financial information presented herein and in Exhibit A.
Managements Comment Regarding Second Quarter Financial Information
DARTs unaudited financial statements for the six-month period ended
March 31, 2012, and March 31, 2012, show sales tax revenues as
$212.8 million and $196.7 million, respectively, which indicates an
increase of 8.2%. Our operating results for the six-month period
ended March 31, 2012 reflect an operating loss of $277.8 million,
compared to an operating loss of $268.0 million for the six-month
period ended March 31, 2011. This was primarily due to increased
costs in depreciation and amortization mainly due to the opening
and operation of the Green Line extension to DARTs light rail
system. The overall result for the six-month period ended March 31,
2012 shows a decrease in net assets of $100.0 million since
September 30, 2011. DART maintains various cash reserves including
a Financial Reserve Account that is funded with sales tax
collections that exceed budget during a given year, if any. In
addition, the Board of Directors authorized the establishment of a
Capital Reserve Account. Should the Financial Reserve exceed $50
million, excess funds are placed in the Capital Reserve Account. An
affirmative vote of two-thirds of the Board is required to draw
upon the Financial and Capital Reserves, and the funds may be used
for any purpose approved by the Board. For Fiscal Year (FY) 2011,
our sales tax receipts exceeded our sales tax budget by $8.5
million. Our Financial Standards required us to move any overages
to the Financial Reserve Account. These funds were moved in
December 2011 and the balance in the Financial Reserve Account as
of March 31, 2012 was $31.7 million and the balance in the Capital
Reserve Account was $0. As of March 31, 2012, the Operating Fund
balance was $692.8 million. We maintain a working cash balance in
the Operating Fund equal to at least one month of projected
payments. Financial Outlook The Dallas/Fort Worth economy grew at a
modest pace. Our FY 2012 Twenty-Year Financial Plan that reflects a
return to calmer waters after the stormy economic seas that we have
weathered in the past several years. During FY 2011, revenues
remained at or above the revised forecasts, and our current Budget
and Financial Plan represent a program of staying on track. DARTs
FY 2012 Twenty-Year Financial Plan shows limited changes from the
2011 Plan. All light rail build-out projects remain on the same
schedules, and all projected future service levels remaing intact.
This is comforting after several years of financial uncertainty.
FY12-2Q QDU-COTW2 6/13/2012 2:41:28 PM 2Exhibit 1 Litigation No
significant changes have occurred in the status of pending
litigation involving DART since the date of the 2012 Annual
Disclosure Statement. Accruals and estimated losses on claims that
are asserted in pending litigation, if any, are included in
accounts payable and accrued liabilities in the unaudited statement
of our principal accounts attached hereto as Exhibit A. Other than
cases filed in the ordinary course of business as an operating
transit agency, no new litigation has been filed against DART since
the date of the 2012 Annual Disclosure Statement. See, 2012 Annual
Disclosure Statement, LITIGATION. ______________________________
This Quarterly Disclosure Update, in substantially the form and
content presented above and in its Exhibit, was approved by the
Board of Directors of DART on June 24, 2012. /s/John Danish ATTEST:
Chairman, Board of Directors /s/ Scott Carlson /s/ Gary C. Thomas
Secretary, Board of Directors DART, President/Executive Director
FY12-2Q QDU-COTW2 6/13/2012 2:41:28 PM 3Exhibit 1 Exhibit A
Unaudited Statement of Principal Accounts for the six-month period
ended March 31, 2012 FY12-2Q QDU-COTW2 6/13/2012 2:41:28 PM 41
DALLAS AREA RAPID TRANSIT STATEMENTS OF NET ASSETS March 31, 2012
and September 30, 2011 (Dollars in Thousands) 3/31/2012 Unaudited
9/30/2011 ASSETS CURRENT ASSETS Cash and cash equivalents $ 70,367
$ 116,477 Investments 657,682 677,801 Derivative instrument asset
3,490 5,480 Sales and use tax receivable 70,600 68,114 Transit
revenue receivable, net 1,836 2,563 Due from federal and other
governments 17,618 20,306 Materials and supplies inventory, net
28,307 27,381 Prepaid transit expense and other 7,768 2,483
Restricted investments held by trustee for debt service 64,541
65,375 Restricted investments held for advance funding agreements
11,292 11,921 Restricted investments held to pay capital
lease/leaseback liabilities 76,762 55,762 TOTAL CURRENT ASSETS
1,010,263 1,053,663 NONCURRENT ASSETS Investments restricted for
system expansion and acquisition 228,494 354,274 Restricted
Investments held as security for capital lease/leaseback
liabilities 10,668 10,766 Investment in joint venture 23,533 24,190
Capital assets Land and rights-of-way 548,905 548,904 Depreciable
capital assets, net of depreciation 3,279,995 3,367,054 Projects in
progress 972,193 859,872 Restricted investments held to pay capital
lease/leaseback liabilities 211,040 268,141 Net pension asset 6,108
6,485 Unamortized bond issue costs and other 22,075 22,677 TOTAL
NONCURRENT ASSETS 5,303,011 5,462,363 TOTAL ASSETS 6,313,274
6,516,026 LIABILITIES CURRENT LIABILITIES Accounts payable and
accrued liabilities 58,879 93,415 Commercial paper notes payable
150,000 150,000 Current portion of capital lease/leaseback
liabilities 76,762 55,762 Current portion of repayment due to State
Comptroller 824 824 Local Assistance Program payable 5,170 13,370
Retainage payable 39,799 55,666 Unearned revenue and other
liabilities 39,471 35,194 Accrued interest payable from restricted
assets 57,871 58,037 Current portion of senior lien sales tax
revenue bonds payable 6,740 8,370 Deferred inflows of resources
3,490 5,480 TOTAL CURRENT LIABILITIES 439,006 476,118 NONCURRENT
LIABILITIES Accrued liabilities 31,188 30,217 Repayment due to
State Comptroller 11,458 11,871 Senior lien sales tax revenue bonds
payable 3,346,922 3,356,068 Capital lease/leaseback liabilities
211,040 268,141 TOTAL NONCURRENT LIABILITIES 3,600,608 3,666,297
TOTAL LIABILITIES 4,039,614 4,142,415 NET ASSETS Invested in
capital assets, net of related debt 1,477,905 1,515,210 Restricted
for debt service 6,670 7,338 Restricted as security for capital
lease/leaseback liabilities 10,668 10,766 Unrestricted 778,417
840,297 TOTAL NET ASSETS $2,273,660 $2,373,611 FY12-2Q QDU-COTW2
6/13/2012 2:41:28 PM 52 DALLAS AREA RAPID TRANSIT STATEMENTS OF
REVENUES, EXPENSES, AND CHANGES IN NET ASSETS For the six months
ended March 31, 2012 and 2011 (Dollars in Thousands) 2012 Unaudited
2011 Unaudited OPERATING REVENUES Passenger revenues $ 30,227 $
28,005 Advertising, rent, and other 6,177 5,662 TOTAL OPERATING
REVENUES 36,404 33,667 OPERATING EXPENSES Labor 98,200 99,354
Benefits 44,666 44,025 Services 12,565 14,925 Materials and
supplies 23,738 23,572 Purchased transportation 27,533 26,111
Depreciation and amortization 94,514 81,575 Utilities 8,701 7,748
Taxes, leases, and other 2,455 2,508 Casualty and liability 1,801
1,852 TOTAL OPERATING EXPENSES 314,173 301,670 NET OPERATING LOSS
(277,769) (268,003) NON-OPERATING REVENUES (EXPENSES) Sales and use
tax revenue 212,819 196,684 Investment income 3,357 1,755 Interest
income from investments held to pay capital lease/leaseback 11,155
11,473 Interest expense on capital lease/leaseback (11,155)
(11,473) Street improvements (2,136) (95) Interest and financing
expenses (67,586) (57,689) Build America Bonds tax credit 15,231
15,019 Other non-operating revenues 4,896 7,568 Other non-operating
expenses (1,060) (3,260) NET NON-OPERATING REVENUES 165,521 159,982
LOSS BEFORE CAPITAL CONTRIBUTIONS AND GRANTS (112,248) (108,021)
CAPITAL CONTRIBUTIONS AND GRANTS Federal capital contributions
8,444 26,095 State capital contributions 19 503 Local capital
contributions 2,098 927 Total capital contributions 10,561 27,525
Other federal grants 1,736 1,186 TOTAL CAPITAL CONTRIBUTIONS AND
GRANTS 12,297 28,711 CHANGE IN NET ASSETS (99,951) (79,310) TOTAL
NET ASSETS BEGINNING OF YEAR 2,373,611 2,445,494 TOTAL NET ASSETS
END OF THE SIX MONTHS PERIOD $2,273,660 $2,366,184 FY12-2Q
QDU-COTW2 6/13/2012 2:41:28 PM 63 DALLAS AREA RAPID TRANSIT
STATEMENTS OF CASH FLOWS For the six months ended March 31, 2012
and 2011 (Dollars in Thousands) 2012 Unaudited 2011 Unaudited CASH
FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 40,935 $
34,823 Cash flows from other sources 5,641 5,228 Payments to
suppliers of goods and services (55,915) (55,775) Payments to
purchased transportation service providers (26,282) (25,613)
Payments to employees (98,600) (99,849) Benefit payments on behalf
of employees (42,192) (38,769) NET CASH USED BY OPERATING
ACTIVITIES (176,413) (179,955) CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES Sales and use tax proceeds 209,921 195,389
Other federal grants 2,423 1,196 Build America Bonds tax credit
15,231 10,777 Other non-capital financing receipts 883 6,178 Other
non-capital financing payments (96) (209) Local Assistance Program
and street improvements (10,179) (95) NET CASH PROVIDED BY
NON-CAPITAL FINANCING ACTIVITIES 218,183 213,236 CASH FLOWS FROM
INVESTING ACTIVITIES Interest on investments 2,425 4,700 Proceeds
from sales and maturity of investments 562,491 516,650 Purchase of
investments (541,535) (528,145) (Increase) decrease in restricted
assets 127,341 (434,237) NET CASH (USED) GENERATED BY INVESTING
ACTIVITIES 150,722 (441,032) CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES Acquisition and construction of capital assets
(152,514) (297,711) Proceeds from the issuance of commercial paper
notes 555,000 450,000 Payment on commercial paper notes (555,000)
(450,000) Proceeds from the issuance revenue bonds 839,531 Payments
for advance refunding revenue bonds (110,410) Principal payment on
revenue bonds (8,370) (18,790) Interest and financing expenses
(88,474) (47,243) Payments of bond issuance costs (4,949) Federal
capital contributions 8,482 27,711 Local capital contribution 2,159
Proceeds from the sale of capital assets 115 NET CASH USED BY
CAPITAL AND RELATED FINANCING ACTIVITIES (238,602) 388,139 NET
DECREASE IN CASH AND CASH EQUIVALENTS (46,110) (19,612) CASH AND
CASH EQUIVALENTS, BEGINNING OF YEAR 116,477 141,419 CASH AND CASH
EQUIVALENTS, END OF THE SIX MONTHS PERIOD $ 70,367 $ 121,807
FY12-2Q QDU-COTW2 6/13/2012 2:41:28 PM 74 DALLAS AREA RAPID TRANSIT
STATEMENTS OF CASH FLOWS For the six months ended March 31, 2012
and 2011 (Dollars in Thousands) 2012 Unaudited 2011 Unaudited
RECONCILIATION OF OPERATING LOSS TO CASH USED BY OPERATING
ACTIVITIES CASH FLOWS FROM OPERATING ACTIVITIES Net operating loss
$(277,768) $(268,003) ADJUSTMENTS TO RECONCILE NET OPERATING LOSS
TO NET CASH USED IN OPERATING ACTIVITIES Depreciation 94,514 81,575
Other non-operating revenues 5,641 5,228 Other non-operating
expenses (926) (2,933) Changes in assets and liabilities Decrease
in receivables 5,545 (1,968) Increase (decrease) in materials and
supplies inventory (926) (230) (Increase) decrease in prepaid
expenses and other current assets (5,179) (1,955) (Increase)
decrease in net pension assets 378 (450) Increase(decrease) in
accounts payable and accrued liabilities 3,149 2,013 Increase in
other current liabilities 3,877 6,768 NET CASH USED BY OPERATING
ACTIVITIES $(176,314) $(179,955) NON-CASH OPERATING, INVESTING, AND
FINANCING ACTIVITIES Interest income from investments held to pay
capital lease/leaseback $11,155 $11,473 Interest expense on capital
lease/leaseback (11,155) (11,473) Increase in capital
lease/leaseback obligations 36,101 9,333 Decrease in investments
held to pay capital lease/leaseback (36,101) (9,333) Toll credits
received from the State of Texas 35 184 Toll credits recorded as
non-operating expense (35) (184) Increase (decrease) in fair value
of investments 784 (2,306) Amortization of premium, discount and
debt issuance costs (1,816) (974) FY12-2Q QDU-COTW2 6/13/2012
2:41:28 PM 8Agenda ReportCommittee-of-the-Whole Voting
Requirements:MajorityDATE: June 26, 2012SUBJECT:Authorization to
Increase Outstanding Commercial Paper Issued to
$400MillionRECOMMENDATIONAuthorization to increase outstanding
commercial paper issued to $400 million. Final Board approvalof the
documents that implement this increase will be required.COMMITTEE
CONSIDERATIONS. On May 22, 2012 the Budget and Finance Committee
unanimously moved to forward this item tothe June 12, 2012
Committee-of-the-Whole for Initial Consideration.. On June 12, 2012
the Committee-of-the-Whole unanimously moved to forward this item
to theJune 26, 2012 Committee-of-the-Whole for Final
Consideration.BUSINESS PURPOSE AND FINANCIAL CONSIDERATIONS. On
January 23, 2001, the Board approved the Master Debt Resolution
(Resolution No. 010014)and the First Supplemental Debt Resolution
authorizing $650 million in DART CommercialPaper Notes, Series 2001
(Resolution No. 010015). The Master Disclosure Statement and
theSupplemental Disclosure Statement were approved as part of the
First Supplemental DebtResolution. The Master Debt Resolution is
the controlling document for all debt transactions for30 years from
the approval date.. The commercial paper program is used for
interim financing for DART's capital program. Thecommercial paper
debt is refunded with long-term debt in most instances.. A
commercial paper program requires a back-up credit facility or
self-liquidity program to issuecommercial paper debt.. On December
14, 2010 (Resolution No. 100163), the Board approved a Substitute
RevolvingCredit Agreement that installed Bank of America as the
Lender for $150 million and amended theFirst Supplemental Debt
Resolution to reflect the Substitute Revolving Credit Agreement..
DART currently has $150 million in outstanding commercial paper.
Short-term borrowing costscontinue to be at historically low rates.
Because DART has a $150 million Revolving CreditFacility, it is
limited in taking advantage of these low rates. Increasing DART's
ability to issuecommercial paper through an increased Revolving
Credit Agreement or a self-liquidity programAGENDA ITEM NO.
5RevCreditAgreementIncrease-COTW2 6/13/20122:46:00PM 1will allow
DART to financially benefit from low short-term interest rates..
DART's future capital expansion and planned equipment replacements
(State of Good Repair) inthe approved Financial Plan will require
the issuance of debt. An increase in DART's commercialpaper program
is an important financing tool that will allow DART to take
changing financialconditions into account in the future.. The
purpose of this item is to request approval to increase the amount
of outstanding commercialpaper from $150 million to $400 million.
This increase in outstanding commercial paper will besupported by a
revised Revolving Credit Agreement, a self-liquidity program, or a
combination ofboth.. The increased level of commercial paper
funding capacity will permit the current busprocurement to be paid
out over a five-year timeframe as opposed to higher amounts within
a twoto three-year period.. The FY 2012 Twenty-Year Financial Plan
includes the assumption that no more than $400million in commercial
paper will be outstanding during the life of the Plan.. The
discussion will help achieve the Board's Strategic Priority of
Managing System Developmentand Maintaining Infrastructure.LEGAL
CONSIDERATIONS. Section 452.054 of the Texas Transportation Code
authorizes DART to exercise all powersnecessary or convenient to
carry out the purposes or the provisions of the statute.. Section
452.352 of the Texas Transportation Code authorizes DART to issue
bonds and notes asit shall consider necessary or appropriate for
the acquisition, purchase, construction, or extensionof the
transportation system.RevCreditAgreementIncrease-COTW2
6/13/20122:46:00PM 2DRAFTRESOLUTIONof theDALLAS AREA RAPID TRANSIT
BOARD(Executive Committee)Authorization to Increase Outstanding
Commercial Paper Issued to $400 MillionWHEREAS, the Board of
Directors (the "Board") of Dallas Area Rapid Transit
("DART")pursuant to Resolution No. 010014 (the "Master Debt
Resolution") and Resolution No. 010015(the "First Supplemental Debt
Resolution"), both approved by the Board on January 23,
2001,authorized the issuance of Dallas Area Rapid Transit Senior
Subordinate Lien Sales Tax RevenueCommercial Paper Notes, Series
2001, in the maximum principal amount of $650,000,000
(the"Commercial Paper Notes"); andWHEREAS, a commercial paper
program requires a back-up credit facility or self-liquidityprogram
to issue commercial paper debt; andWHEREAS, on December 14, 2010
(Resolution No. 100163), the Board approved a SubstituteRevolving
Credit Agreement that installed Bank of America as the Lender for
$150 million andamended the First Supplemental Debt Resolution to
reflect the Substitute Revolving CreditAgreement; andWHEREAS,
DART's future capital expansion and planned equipment replacements
(State ofGood Repair) in the approved Financial Plan will require
the issuance of debt; andWHEREAS, the increased level of commercial
paper funding capacity will permit the current busprocurement to be
paid out over a five-year timeframe as opposed to higher amounts
within a twoto three-year period; andWHEREAS, the FY 2012
Twenty-Year Financial Plan includes the assumption that no more
than$400 million in commercial paper will be outstanding during the
life of the Plan.NOW, THEREFORE, BE IT RESOLVED, by the Dallas Area
Rapid Transit Board of Directorsthat:Section 1: The
President/Executive Director or his designee is authorized to
increaseoutstanding commercial paper issued to $400 million.Section
2: Final Board approval of the documents to implement this increase
will berequired.Rev Credit Agreement Increase-COTW2 1Authorization
to Increase Outstanding Commercial Paper Issued to $400 Million
Prepared by: Approved as to fonn: David Leininger Executive Vice
President Chi inancial Officer Approved by: Rev Credit Agreement
Increase 2 *Discussion on Selection of DART General Counsel &
Interviews Committee-of-the-Whole Agenda Item 6 DRAFTRESOLUTIONof
theDALLAS AREA RAPID TRANSIT BOARD(Executive Committee)Authorize
Waiver of Certain Provisions of DART Board Rules of Procedures and
DARTBoard Policy V.01 for Scott CarlsonWHEREAS, Scott Carlson has
resigned as a member of the DART Board of Directors; andWHEREAS,
James F. Adams has been appointed by the City of Dallas to serve in
Scott Carlson'sposition until the end of the term and was given his
oath of office as a DART Board member onJune 15, 2012; andWHEREAS,
DART Board Policy V.01 and Rule 5 of the DART Board Rules of
Procedureprohibit a board member, during his or her term as a board
member and for a period of one yearfollowing the end of the term
from participating, either directly or through the board
member'sspouse, as a principal in any DART contact of first tier
subcontract or as an employee of acontractor or first tier
subcontractor of DART; andWHEREAS, DART Board Policy V.01 and Rule
5 of the DART Board Rules of Procedurefurther prohibit a board
member, during his or her term as a board member and for a period
of oneyear following the end of the term from appearing for
remuneration on behalf of or representingany private third party
before the DART Board or any DART committee, task force,
orsubcommittee; andWHEREAS, DART Board Policy V.01 and Rule 5 of
the DART Board Rules of Procedurefurther provide that if the Board
determines that it is in the best interest of DART,
theserequirements may be modified or waived by the affirmative vote
of two-thirds of the members;andWHEREAS, the Board has determined
that it is in DART's best interest to waive theserequirements for
Scott Carlson.NOW, THEREFORE, BE IT RESOLVED by the Dallas Area
Rapid Transit Board of Directors,by a two-thirds vote:Section 1:
That the prohibition in Rule 5.1(A)(1) of the DART Board Rules
ofProcedure and in Section 1.A.(A) of DART Board Policy V.01 that
prohibit aboard member, during his or her term as a board member
and for a period ofone year following the end of the term from
participating, either directly orthrough the board member's spouse,
as a principal in any DART contract orfirst tier subcontract or as
an employee of a contractor or first tiersubcontractor of DART is
hereby waived for Scott Carlson.AuthorizeWaiver-COTW2 1Agenda Item
7 Committee-of-the-Whole Voting Requirements: 2/3 Section 2: That
the prohibition in Rule S.I(A)(7) of the DART Board Rules of
Procedure and in Section 1.A(7) of DART Board Policy V.OI that
prohibit a board member, during his or her term as a board member
and for a period of one year following the end of the term from
appearing for remuneration on behalf of or representing any private
third party before the DART Board or any DART committee, task
force, or subcommittee is hereby waived for Scott Carlson. Prepared
by: ~ . ~ h ~ f { o ~ tJp= Director, Office of Board Support
Approved as to form: ~ ([7w7n-oA Office of Gen ralcounsel Authorize
Waiver-BD 2 Agenda Report DATE: June 12, 2012 SUBJECT: Approval of
the Fourth Option Year for Annual Software Maintenance with Hansen
Information Technologies RECOMMENDATION Approval of a resolution
authorizing the President/Executive Director or his designee to
exercise a contract option for annual software maintenance services
with Hansen Information Technologies [Contract No. C-1016109-01]
to: 1) exercise the fourth option; and 2) increase the
not-to-exceed amount by $155,611 for a new total authorized amount
not to exceed $714,855 $714,851. COMMITTEE CONSIDERATIONS On June
12, 2012, the Administrative Committee unanimously moved to forward
this item to the June 26, 2012 Committee-of-the-Whole for Initial
Consideration. FINANCIAL CONSIDERATIONS This contract option for
annual software maintenance services is included in the Technology
Departments approved FY 2012 operating budget. Sufficient funding
for this contract option in the amount of $155,611 is included in
both the Technology Departments FY 2012 Operating Expense Budget
and the Operating Expense line item of the FY 2012 Twenty-Year
Financial Plan. BUSINESS PURPOSE DARTs Maintenance and Materials
Management departments depend on automated systems provided by
Hansen Information Technologies (formerly SPEAR Technologies) for
the daily delivery and asset maintenance of buses, light rail
vehicles, support vehicles, facilities, right-of-way, and other
various infrastructure assets. Approval of this contract option
will help achieve the Board Strategic Priority VI: Use technology
to integrate and advance services and system; Goal 3: Leverage
technology for maximum benefit to agency and stakeholders. Voting
Requirements: Majority AGENDA ITEM NO. 8 The asset maintenance
software has been a part of DARTs maintenance and materials
management business fabric since 2000. This software, which is
comprised of three main modules (Workforce Manager, Materials
Manager, and Infrastructure Manager), provides for a paperless
system of work order assignments and overall revenue and
non-revenue fleet and facilities management plus management of
DARTs parts inventory system that supports maintenance and other
supplies requirements. The enterprise software is serviced and
maintained through an annual software maintenance agreement that
provides for upgrades, patches, and 24x7 technical support. The
annual software maintenance agreement can only be provided by
Hansen Information Technologies due to the proprietary nature of
the source code. In October 2008, a new contract for software
maintenance was negotiated with Hansen Information Technologies
that included pricing for one base year and four option years for
software maintenance. The pricing schedule provides DART with a
very stable software maintenance price increase of only 3% for each
year. The base year contract amount was $133,673. The following
table identifies the history of this contract from the date of
award: Date Action Contract Change Amount Board Authorized Amount
10/08 Contract Awarded-(under Board approval threshold) $133,673.40
10/22/09 Exercised First Option Period Resolution No. 090123
$137,684 $271,360 08/24/10 Exercised Second Option Period
Resolution No. 100094 $141,814 $413,174 08/23/11 Exercised Third
Option Period Resolution No. 110081 $146,079 $559,239.64 Base Year
$133,673Option Year 1 $137,684Option Year 2 $141,814Option Year 3
$146,069TOTAL $559,240 Contract to Date $559,240Option Year 4
$150,451Infrastructure Miles Track Module Maintenance $5,160TOTAL
$714,851 PROCUREMENT CONSIDERATIONS The base term of the contract
is one year with four, one-year options. Pricing for the option
year is determined to be fair and reasonable. The contract option
analysis is provided as Attachment 1. D/M/WBE CONSIDERATIONS The
goal for this contract was established in 2008 at 1% M/WBE
combination participation. Hansen Information Technologies, the
prime contractor, has no direct M/WBE participation. The M/WBE
analysis and the prime contractors Equal Employment Opportunity
information are included in Attachment 2. The firms actual EEO-1
report is available upon request. LEGAL CONSIDERATIONS Section
452.055 of the Texas Transportation Code authorizes DART to
contract for the provision of goods and services. Attachment 1 1
Dallas Area Rapid Transit Authority CONTRACT OPTION ANALYSIS
Modification No. 04 A. Contract Description: Software Maintenance
Agreement B. Contractor: Hansen Information Technologies C.
Contract Number: C-1016109-01 D. Contractual Action: Exercise the
fourth one-year option and add maintenance for Infrastructure Miles
Track software module. E. Current Contract Amount: Not-to-exceed
$559,240. F. Contract Modification Amount: Not-to-exceed $155,611
G. New Contract Amount: Not-to-exceed $714,855 $714,851 H. Contract
Type: Definite Quantity/Definite Delivery I. Current Term of
Contract/Performance Period: October 01, 2008 - September 30, 2012
J. Remaining Options Available: none K. Price Considerations: The
option pricing was evaluated along with the base pricing and
approved by the Board prior to awarding the contract. The pricing
increase of 3% for this new option year is very close in comparison
to the Consumer Price Index (CPI) annual inflation rate of 2.7%.
The annual 3% increase is also in line with similar software
maintenance contracts that the agency has in place at this time.
Hansens standard annual increase on maintenance is usually 50%
higher. This modification also includes maintenance for the new
Infrastructure Miles Track module in the amount of $5,160.22.
Therefore, this price is considered fair and reasonable. L.
Funding: Local M. Determination of Responsibility: Reference Check:
Satisfactory Financial Responsibility Survey: Satisfactory
Debarred/Suspended list: Not on the debarred/suspended list.
Determination and Recommendation Hansen Information Technologies,
Inc. is determined to be a responsible contractor for the
modification described above. Therefore, execution of the contract
modification is recommended. Attachment 2 Approval of the Fourth
Option Year for Annual Software Maintenance with Hansen Information
Technologies M/WBE CONSIDERATIONS The goal for this contract was
established in 2008 at 1% M/WBE combination participation. Hansen
Information Technologies, the prime contractor, has no direct M/WBE
participation on this software maintenance agreement. Note: The
goal is based on the new contract not-to-exceed amount of $714,855
$714,851. If there are any changes to the contract, the original
goal shall still apply. Summary of EEO-1 Information: Hansen
Information Technologies is located in Sacramento, CA and employs
66 individuals. The following is an analysis of their EEO-1
information. ASIAN BLACK HISPANICNATIVE AM.WHITETOTAL
PercentageMALES 16 2 1 0 30 49 74.24% FEMALES 9 1 1 0 6 17 25.76%
TOTAL 25 3 2 0 36 66 100% PERCENTAGE 37.88% 4.54% 3.03% 0% 54.55%
100% Software Maintenance-Hansen Technologies.doc 1
06/21/2012--1:22 PM DRAFT RESOLUTION of the DALLAS AREA RAPID
TRANSIT BOARD (Executive Committee) Approval of the Fourth Option
Year for Annual Software Maintenance with Hansen Information
Technologies WHEREAS, DARTs Maintenance and Materials Management
departments rely on automated systems support for the daily
operations of DART services; and WHEREAS, these automated systems,
provided by Hansen Information Technologies, are maintained through
annual software maintenance agreements; and WHEREAS, the third
option year expires on September 30, 2012, and DART desires to
execute the fourth option year; and WHEREAS, the proposed price for
this contract option is determined to be fair and reasonable; and
WHEREAS, funding for this contract option is within current Budget
and FY 2012 Twenty-Year Financial Plan allocations. NOW, THEREFORE,
BE IT RESOLVED by the Dallas Area Rapid Transit Board of Directors
that the President/Executive Director or his designee is authorized
to exercise a contract option for annual software maintenance
services with Hansen Information Technologies [Contract No.
C-1016109-01] to: Section 1: Exercise the fourth, one-year option.
Section 2: Increase the not-to-exceed amount by $155,611, for a new
total authorized amount not to exceed $714,855 $714,851. Approval
of the Fourth Option Year for Annual Software Maintenance with
Hansen Information Technologies Prepared by: Chief Financial
Officer avid Leininger Executive Vice President Approved as to
form: Approved b Software Maintenance-Hansen Infonnation
Technologies 2 Trapeze Contract Option.doc 1 6/21/2012 1:50:00 PM
Agenda Report DATE: June 26, 2012 SUBJECT: Approval of the First
Option Year for Annual Software Maintenance with Trapeze Software
Group, Inc. Approval of a resolution authorizing the
President/Executive Director or his designee to execute a contract
option for software maintenance services with Trapeze Software
Group, Inc. to: 1) exercise the first one-year option; and 2)
increase the not-to-exceed amount by $654,549 for a new total
authorized amount not to exceed $2,499,772 $2,499,773. COMMITTEE
CONSIDERATIONS On June 12, 2012 The Administrative Committee
unanimously moved to forward this item to the June 26, 2012
Committee-of-the-Whole for Initial Consideration. FINANCIAL
CONSIDERATIONS This contract option for software maintenance
services is included in the Technology Departments approved FY 2012
operating budget. Sufficient funding for this contract option in
the amount of $654,549 is included in both the Technology
Departments FY 2012 Operating Expense Budget and the Operating
Expense line item of the FY 2012 Twenty-Year Financial Plan.
BUSINESS PURPOSE Many of DARTs administrative and operational
functions are supported by proprietary or what is termed in the
software industry as enterprise software applications. Technical
support for these types of enterprise applications is provided
through annual software maintenance agreements. The annual
maintenance fees provide free upgrades, software patches, break/fix
analysis, and in most cases technical support seven days a week, 24
hours a day. DART has purchased 17 integ