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Transcript of Finance & Administration Committee Action Item III … & Administration Committee Action Item III-A...
Finance & Administration Committee
Action Item III-A
February 2, 2012
Continuation of Budget Discussions
TITLE:
GM/CEO Budget Discussion, FA Committee Feb 2, 2012
PURPOSE:
To provide additional information to the FA Committee regarding Board member requests.
DESCRIPTION:
During the FA Committee meeting held on January 12, 2012, the Board members made specific inquiries concerning the operating and capital proposed budgets for FY2013. This informational presentation is designed to answer those questions. There are four main focuses: the status of the FY2012 efficiencies, an outline of cost reductions since FY2009, the expense and revenue estimates for the Silver line, the operating budget's cost recovery, an outline of the staffing plan, and a status review of Metro's Capital investments.
FUNDING IMPACT:
No funding impact.
RECOMMENDATION:
This is for information purposes only; a recommendation is not applicable.
Washington Metropolitan Area Transit Authority
Board Action/Information Summary
Action Information MEAD Number: Resolution: Yes No
GM/CEO Budget Discussion Finance and Administration Committee February 2, 2012
Washington Metropolitan Area Transit Authority
FA Committee Requests
– FY2012 efficiencies
– Cost reductions
– Silver line preparation
– Modal Equity
– FY2013 staffing plan
– Capital program
Approved FY2012 Budget Reductions: Status
Health Verification Audit
$3 M budgeted, $2.5 M expected: Due to timing of the L689 audit
Reduction in support services
$3 M budgeted, $2 M expected: Due to adjustment in allocation of safety expenses between operating and capital
Reduction in parking contract
$1.6 M budgeted: Delays in parking contract, budgeted savings will not be fully realized until FY2013
Metro will realize $71 M of $74 M in FY2012 budget reductions
Cost Reductions FY2009 – FY2012
Over $200 Million in reductions since FY2009
• Sustainable
• One-time
• Cost restructuring
Cost Reductions FY2009 – FY2012
• Sustainable Initiatives $97 Million
– $23M: Service and other contract changes in multiple years
– $27M: Eliminated 313 positions in FY2010
– $10M: Departmental reductions in FY2011
– $ 9M: Paratransit contract savings in FY2011
– $28M: Other business operational changes in multiple years
Cost Reductions FY2009 - FY2012
• One-time Savings $77 Million
– $24M: Personnel savings FY2010, FY2012
– $20M: Reduced overtime in FY2009, FY2010
– $23M: Fuel and propulsion FY2011, FY2012
– $ 9M: Accounting adjustments (GASB-34)
• Cost Restructuring $63 Million
– $51M: Capitalizing Overhaul Shops, ELES, other adjustments
– $12M: Accounting adjustments FY2009, FY2010
Silver Line Phase I - Preparation
FY2013 • Hiring / Training
FY2014 • Q1 /Q2 Operations
training • Q3 Begin Revenue
Service
FY2015 • Full Operation
• FY13 and FY14 expenses include recruitment and training for daily operations − Rail Operators, Station Managers, Car Maintenance, Escalators,
System Maintenance, Track and Structure, MTPD Police, Human Resources, Information Technology and Communications
• 6 Months of revenue service in FY2014
Silver Line Phase I - Preparation
($ in Millions) FY2013 FY2014 FY2015Operating Expenses $20 $43 $44 Propulsion 2 3 Estimated Revenue - (16) (31)
Gross Total $20 $29 $16
Silver Line Cost Recovery 35% 66%Rail - Farebox Recovery (System-wide)
70% 70% 71%
• Estimated number of passenger trips *
* Passenger trips and revenue based on prior census, 2010 urbanized area population census data available 2013
Silver Line Phase I – Revenue Estimates
(Trips in Millions) FY2014 Average Estimate Fare Annual
New Passengers Trips 4.5 $3.00 9Current passengers who adjust their travel route
2.7 $0.75 5.4
Total Trips 7.2 14.4
FY11 Ridership Demographic Profile
MODE
TOTAL
ANNUAL TRIPS
%
MINORITY TRIPS
TOTAL
MINORITY TRIPS
% LOW INCOME TRIPS
TOTAL LOW
INCOME TRIPS
Rail 217 M 54% 117 M 14% 31 M
Bus 125 M 75% 94 M 42% 53 M
Access 2.3 M 74% 1.7 M 52% 1.2 M
System Total 345 M 213 M 85 M
• Source: 2007/2008 Rail and Bus Passenger Surveys, 2010 Census
• Metro has begun the Title VI Equity Analysis of the fare proposals on minority and low-income populations
Cost Recovery by Mode
Metrobus $154
Metrorail $713
Metro Access
$8
Gross Subsidy $704
Revenue by Mode ($1.6 B)
$ in Millions
($ Millions) FY2013 Budget Metrorail Metrobus MetroAccess
Revenue Budget $809 $654 $147 $8Fare Recommendations $66 $59 $7 $0.3
Total Revenue $875 $713 $154 $8
Operating Expenses $1,580 $897 $565 $118
Gross Subsidy $704 $183 $411 $110
Cost Recovery 55% 80% 27% 7%
Multi-year Staffing Plan 953 Positions
CATEGORY PROPOSED
HEADCOUNT
Capital Reconstruction 255
Silver Line 363
Maintaining the Baseline 194
System Investments 255
Contract Escalator/Elevator Maintenance
-60
GM/CEO’s Initiatives -54
Total Headcount Change 953
0
100
200
300
400
500
600
700
Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13
Hea
dcou
nt
Baseline
Reduce Vacancy & Increase Headcount
Q3 FY12
Q4 FY12
Q1 FY13
Q2 FY13
Q3 FY13
Q4 FY13 Total
50 80 322 108 195 122 877 Increase Headcount*
150 120 20 50 50 50 440 Reduce Existing Vacancy Rate
300 300 300 300 300 300 1,800 Baseline Recruitment
RECRUITMENT MILESTONES:
M1: MTPD police, Fatigue Management, and System Investments
M2: Skilled job classes (Silver Line)
M3: MTPD support & continued ramp up for Silver line
M4: Infrastructure support staff for Silver line
M1
M2 M3
M4
FY2012-FY2013 Staffing Plan
* Does not include Q1 FY12 reconciliation of 76 positions that are part of the 953
-100 -75 -50 -25
0 25 50 75
100 125 150 175 200 225 250 275
05 06 07 08 09 10 11 12 13 14 15 16 17 18 19
Tie
s in
Tho
usan
ds
Fiscal Year
FY2005 – 2019 Capital Investment Eliminating the Backlog
Backlog
Workplan
Good Ties
Steady State of Maintenance
12,000 Ties Annually
Multi-year Staffing Plan 953 Positions
CATEGORY BUDGET
REQUEST PROPOSED
HEADCOUNT
Capital Reconstruction 255
Silver Line $20 Million 363
Maintaining the Baseline $20 Million 194
System Investments $35 Million 255
Contract for Escalator/Elevator Maintenance
-60
GM/CEO’s Initiatives ($5 Million) -54
Total Headcount Change 953
Capital Program - Rebuilding the System 255 positions
Escort Support, Systems Infrastructure and Construction Oversight for Joint and Adjacent Construction
73 16 Surface Finishers, 3 Craft Crew Supervisors, 6 AFCS Techs, 6 Low Voltage Mechanics, 2 Communication Shift Supervisors, 6 Engineers, 3 Survey Chiefs, 2 Architects, 5 Engineers, 5 Inspectors, 2 HR Staff, 17 Mechanic Escorts
Program Delivery
86 * 71 Engineering: 3 ATC, 8 Communications and Network Systems, 6 Power Systems, 53 in Program Management (including 19 Inspectors), 1 Technical Recruiter;15 positions in Systems Maintenance: 13 mechanics and 2 Supervisors in IRP Support
Headcount Reconciliation 70 * 12 ATC Mechanics, 12 High Voltage Mechanics, 9 Equipment Operators, 15 Track Repairers, 4 Machinists, 12 Laborers, 6 Supervisors
Capital Projects 110, 107, 108, 72, 73, 57
26 * 8 Structural Repair Mechanics, 8 Strategic Coordinators for Mobile Ops, 10 support staff for rail shutdowns
* Approved during Fiscal Year 2012
Silver Line $20.3 M Staffing Plan 363 positions
Systems Maintenance 79 64 Mechanics, 13 supervisors, and 2 managers (PWR and ATC)
Rail Car Maintenance 62 43 Railcar mechanics, 6 supervisors, 12 car cleaners, 1 admin assistant
Rail Transportation 59 12 Train operators, 23 station managers, 4 depot clerks, 1 div clerk, 1 superintendent and 18 supervisors for Silver Line
Track and Structures 52 10 Laborers, 6 equipment operators, 14 track repairers, 6 track walkers, 5 structure repairers, 2 welders, 6 supervisors, 2 track equipment maint workers, and 1 assistant superintendent
Plant 36 Mechanics, masons, plumbers, carpenters, gardeners, etc to service Silver line
MTPD 26 Police officers for Silver line
Elevator/Escalator 24 Additional ELES personnel to service stations on Silver Line
Information Technology 10 IT support for Silver Line
Storeroom Maintenance 5 3 Storeroom clerks, 1 inventory specialist and 1 supervisor
HR 5 HR staff
Vehicle Engineering 3 3 Vehicle engineers
Quality Assurance 2 2 Quality control inspectors
Silver Line Staffing Plan (continued) 363 positions
Maintaining the $20.3 M Baseline 194 positions
Maintain/Support New Facilities • Carmen Turner • Shepherd Parkway • Pennsy Drive • Parking Garage Maint - Rhode Island - Glenmont - Twinbrook - Dunn Loring
57 19 Janitors, 8 HVAC Mechanics, 7 Bus Supervisors, 5 General Equipment Mechanics, 5 Mechanic Helpers, 3 Mechanics (Low Voltage), 3 Fire Equipment Technicians, 1 Surface Finisher, 1 Metal Technician, 1 Custodial Supervisor, 1 Masonic Mechanic, 1 Mobile Lift Mechanic, 1 Bus Data Retrieval, 1 Mechanic Electrical
Train Car Maintenance
51 15 Electronic Mechanics, 5 HVAC Mechanics, 30 Mechanics, 1 Superintendent
Systems Infrastructure Renewal • ATC testing / maintenance • Cable Meggering
43 21 Mechanic Helpers (ATC), 5 Mechanic Helpers Communication, 17 ATC Supervisors
Maintaining the $20.3 M Baseline (continued) 194 positions
Transit Police 31 20 Anti-terrorism officers, 11 Special Police for revenue security
Other 25 2 Reliability Engineers for asset management, 5 mechanics to support CTF Communications Equipment, 12 to support Blue/Yellow re-alignment, 1 HR staff and 5 mechanics (headcount reconciliation *)
Technology Support 17 2 Sr. Enterprise Storage Engineers, 2 ROCS Application Systems Specialist, 1 Sr. Transit Application Systems Specialist, 8 Info Systems Security Officers, 2 IT Security Deputy Chiefs, 1 Server Admin and 1 Infrastructure Engineer
Reduce Reimbursable Positions -30 Reduced -20 MTPD (previously funded under federal grant) and -10 Operations positions
* Approved during Fiscal Year 2012
System Investments $35 Million 195 Positions
CATEGORY BUDGET PROPOSED
HEADCOUNT
Safety and Security $17.3M 146
System Improvements $5.0M 26
Maintenance $12.7M 83
Maintenance - Contract for escalator/elevator maintenance
-60
Total Request $35M 195
System Investments $17.3 M Safety and Security 146 positions
Fatigue Management 91 41 Mechanic Helper Power, 9 Supervisors Power, 28 Mechanic Helper ATC, 6 Equipment Operators, 7 Supervisors ATC
Police for Bus Security 32 32 Sworn Police Officers
Underground Safety Radio 12 12 Communication Mechanics
Rail Grinding 9 3 Laborers, 2 Equip Operators, 2 Track Repairers, 1 Track Equipment Mechanic and 1 Track Supervisor
Employee Background Checks
2 2 Safety Officers for Access Services
System Investments $5.1 M System Improvements 26 positions
Bus Priority Corridor 26 13 Bus Operators 13 Bus Mechanics
System Investments $12.7 M Maintenance 23 positions
Maintain Existing System • Ongoing support of 2K, 3K, and 6K • Support for 50% 8-Car deployment
10 10 Vehicle Engineers
Preserve Capital Invest • Methane Detection Systems • Cross Connection Program • Parking Garage Sprinkler and
Standpipe • Programmable Logic Control
13 4 Plumbers, 3 Fire Equip Techs, 2 Industrial Control Techs and 4 Mechanic Helpers General
Proposed FY2012 Operating Budget Reductions: Status
Rail - Greenbelt Annex & Brentwood
overhaul shops - capitalization - $9M
Bus - Bladensburg & Carmen Turner overhaul shops - capitalization - $21.5M
P Health Verification Audit - $3.3M • Due to timing of the L689 audit we
expect to be at $2.5M
MTPD better resource deployment - $1.5M
Fuel and Propulsion Reductions - $6.8M
× Savings in parking contract - $1.6M • Due to delays in the parking contract
savings will not be realized until FY13
P Reduction in support services - $3.4M • Due to timing of support services contracts,
we expect to be at $2.4M
Bus & Rail cost changes - $1.9M
Fringe benefit rate adjustment - $6.3M
MTPD grant funded positions - $1.9M
Track, Systems, Vehicle capital projects - $5M
P Overhead allocation and Other - $7.7M
Casualty and Liability - $3.3M
Planning functions to capital - $1.1M
: on schedule P : partial × : will not be realized in FY12
Of $74.3 M in budget reductions, we expect to achieve $70.9M