PLANNING AND FINANCE COMMITTEE MEETING J U N E 2 4,

PLANNING AND FINANCE COMMITTEE MEETING J U N E 2 4, 2 0 1 1

SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY ROSTER PLANNING & FINANCE COMMITTEE COUNTY MEMBER Riverside: Daryl Busch (Chair) 1 Vote Mayor City of Perris Karen Spiegel Council Member City of Corona Ventura: Keith Millhouse (Vice-Chair) 1 Vote Council Member City of Moorpark Los Angeles: Michael Antonovich 1 Vote Supervisor, 5 th District County of Los Angeles Richard Katz City of Los Angeles Mayor Appointee Beatrice Proo Appointed by Metro Maureen Micheline Appointed by Metro San Bernardino: Patrick Morris 1 Vote Mayor City of San Bernardino Alan D. Wapner Council Member City of Ontario Orange: Paul Glaab 1 Vote Council Member City of Laguna Niguel Don Bankhead Mayor Pro Tem City of Fullerton One Gateway Plaza, 12 th Floor, Los Angeles, CA 90012

SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY PLANNING AND FINANCE COMMITTEE FRIDAY, JUNE 24, 2011, 10:00 A.M. LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY BOARD ROOM ONE GATEWAY PLAZA, 3 rd FLOOR LOS ANGELES, CALIFORNIA 90012 AGENDA DESCRIPTIONS The agenda descriptions are intended to give notice to members of the public of a brief general description of items of business to be transacted or discussed. The posting of the recommended actions does not indicate what action will be taken. The Committee may take any action that it deems to be appropriate on the agenda item and is not limited in any way by the notice of the recommended action. The Chair reserves the right to discuss the items listed on the agenda in any order. A person with a disability may contact the Committee Secretary's office at (213) 452-0268 or via e-mail batesc@scrra.net at least 72-hours before the scheduled meeting to request receipt of an agenda in an alternative format or to request disability-related accommodations, including auxiliary aids or services, in order to participate in the public meeting. Later requests will be accommodated to the extent feasible. SUPPORTING DOCUMENTATION The agenda, staff reports and supporting documentation are available from the Committee Secretary, located at One Gateway Plaza, 12 th Floor, Los Angeles, CA 90013, and on the Metrolink website at www.metrolinktrains.com under the Committee Agenda link. PUBLIC COMMENTS ON AGENDA ITEMS Members of the public wishing to address the Committee members regarding any item appearing on the agenda, may do so by completing a Speaker s Form and submitting it to the Committee Secretary. Speakers will be recognized by the Chair at the time the agenda item is to be considered. When addressing the Committee, please state your name for the record. Please address the Committee as a whole through the Chair. Please note comments to individual Committee members or staff are not permitted when addressing the Committee. A speaker s comments shall be limited to three (3) minutes. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA Members of the public wishing to address the Committee members regarding any item not on the agenda, but within the subject matter jurisdiction of the Committee, will be taken under Item 9 (Public Comment), and will be subject to the same guidelines as noted above. One Gateway Plaza, 12 Floor, Los Angeles, CA 90012

Planning and Finance Committee Agenda Transmittal Date: June 17, 2011 Meeting Date: June 24, 2011 Page 2 1. Call to Order 2. Pledge of Allegiance REGULAR CALENDAR 3. Approval of Minutes April 22, 2011 Staff recommends the Planning and Finance Committee approve the minutes of the April 22, 2011 Committee meeting. Page 1 4. Grants Database Update As part of its commitment to keep the Committees and the Board of Directors up-to-date on grants management activities, staff will give a brief overview and demonstration of GrantsLink Database, the agency s new interim grants database application built on the Access software platform. The Planning and Finance Committee may receive and file this report. Page 7 5. Accounts Receivable and Recollectable Update This report presents the current aging schedule as of May 31, 2011 and discusses the status of receivables that are greater than 90 days past due. The Planning and Finance Committee may receive and file this report. Page 9 6. Financial System Update Staff will provide an oral update and status report on the stabilization efforts, both completed and in progress, of SCRRA s Financial Management System; including the estimated timeline of short-term and long-term improvements. There is no written document. The Committee may receive and file this report 7. Evaluation Criteria Request for Proposal No. SP345-12 Human Resources Consulting Support Services Proposed evaluation criteria have been developed to initiate a competitive process to retain one or more qualified firms to provide consulting services to the Human Resources Department for various employee development programs, leadership and organizational development, and curriculum design. Staff recommends the Planning and Finance Committee recommend the Board approve the proposed evaluation criteria, detailed in Attachment 1, specifying a weighting of 80% for technical qualifications and 20% for cost to retain one or more firms to provide Human Resources consulting support services. The proposed criteria are consistent with the Evaluation Criteria Policy adopted by the Board. Page 12 8. Chief Executive Officer s Report Agency Update Fuel Price Update 9. Public Comment

Planning and Finance Committee Agenda Transmittal Date: June 17, 2011 Meeting Date: June 24, 2011 Page 3 10. Chair s Comments 11. Committee Member Comments (i.e., Announcements, Requests to Staff, Direction for Future Agenda Items) 12. Adjournment

SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY MINUTES OF THE SCRRA PLANNING AND FINANCE COMMITTEE APRIL 22, 2011 COMMITTEE MEMBERS IN ATTENDANCE: ITEM #3 RCTC: DARYL BUSCH (Chair) (1 Vote) KAREN SPIEGEL METRO: MICHAEL ANTONOVICH 1 (1 Vote) RICHARD KATZ 2 BEATRICE PROO SANBAG: PATRICK MORRIS (1 Vote) ALAN WAPNER OCTA: PAUL GLAAB COMMITTEE MEMBERS ABSENT: VCTC: METRO: OCTA: KEITH MILLHOUSE (Vice Chair) MAUREEN MICHELINE DON BANKHEAD STAFF: JOHN FENTON, Chief Executive Officer GRAY CRARY, Chief Strategy Officer DREW PHILLIPS, Manager, Budget BRUCE HARTWELL, Chief Information Officer PATRICIA KATAURA, Treasurer, Controller LIA McNEIL-KAKARIS, Manager, Strategic Sourcing and Contracts HELEN PARKER, SCRRA Counsel CARRIE BATES, Committee Secretary Meeting minutes are presented in a format that corresponds with the Planning and Finance Committee Agenda, which is incorporated by reference with these minutes. SCRRA Planning and Finance Committee Agendas are available from the Metrolink website (www.metrolinktrains.com) or by calling the Committee Secretary at 213-452-0268. 1 Director Antonovich joined the meeting at 10:33 a.m. during discussion of Item #4. 2 Director Katz joined the meeting at 10:20 a.m. during Closed Session. 1

Planning and Finance Committee Agenda Transmittal Date: June 17, 2011 Meeting Date: April 22, 2011 Page 2 1. Call to Order The SCRRA Planning and Finance Committee Meeting was called to order by Chair Busch on Friday, April 22, 2011 at 10:06 a.m. in the Los Angeles County Metropolitan Transportation Authority Board Room, One Gateway Plaza, 3 rd Floor, Los Angeles, California. 2. Pledge of Allegiance Director Proo led the group in the Pledge of Allegiance. CLOSED SESSION The Planning and Finance Committee adjourned to closed session after an announcement from Helen Parker, SCRRA Counsel, that the Committee would adjourn to Closed Session to discuss the item(s) listed on the posted agenda and will then return to Open Session for additional agenda items. CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION Pursuant to Subdivision (b) of Section54956.9 (1 or more potential cases) The Planning and Finance Committee re-convened in Open Session at 10:31 a.m. and Counsel indicated there were no matters that required a report under the Brown Act. REGULAR CALENDAR 3. Approval of Minutes - March 25, 2011 Staff recommended the Planning and Finance Committee approve the minutes of the March 25, 2011 Committee meeting. Upon a motion by Director Morris, seconded by Director Glaab, the Planning and Finance Committee approved the March 25, 2011, Planning and Finance Committee meeting minutes. There was no opposition to the motion and the motion passed unanimously. ACTION: The Planning and Finance Committee approved the March 25, 2011 minutes. 4. Evaluation Criteria Request for Proposal No. SP338-11 Information Technology (IT) Technical Support Services Bruce Hartwell, Chief Information Officer, reviewed the proposed evaluation criteria to initiate a competitive procurement to retain a technically qualified firm to provide Information Technology (IT) Technical Support Services as outlined in the criteria to select the potential vendors and weighting of qualifications. IT is seeking approval to bring in additional skill sets from a third party vendor at $540,000-$740,000 on an annual basis Upon a motion by Director Morris, seconded by Director Glaab, the Planning and Finance Committee approved and recommended that the Board approve the proposed evaluation criteria, detailed in Attachment 1, specifying a weighting of seventy percent (70%) technical qualifications and thirty percent (30%) for cost to retain a qualified firm to 2

Planning and Finance Committee Agenda Transmittal Date: June 17, 2011 Meeting Date: April 22, 2011 Page 3 provide IT Technical Support services. There was no opposition to the motion and the motion passed unanimously. ACTION: The Planning and Finance Committee approved and recommended that the Board approve the proposed Evaluation Criteria Request for Proposal No. SP338-11 Information Technology (IT) Technical Support Services. 5. FY2009-10 Budget Versus Actual Results Drew Phillips, Manager, Budget reviewed the results as stated in the report and noted that with the publication of the Comprehensive Annual Financial Report (CAFR) this report compared FY09-10 actual results to the amended budget as outlined in the report. Total actual operation budget expenditures were $166.3 M which was.7% below the amended FY10 budget of $167.5 M. Director Spiegel commented that she is concerned about the current economic situation of the times. She noted that three of the counties still owe funds, and with the situations that we are dealing with; there is such a difference between the two budgets; noting the FY11-12 budget looks so optimistic compared to the FY2009-10 budget. Director Morris added that the 7% projection in increased ridership is optimistic and an incredible turnaround. Mr. Phillips replied that there are a number of marketing avenues, with the leadership from Robert Turnauckas, in the fiscal budget that we have not pursued in the past. Previously we had engaged in an awareness strategy and now we are engaged in a sales strategy. The economy was different then and FY10 was overly optimistic. Our numbers have improved, ridership has stabilized and we are seeing year-over-year increases. With the new Express Train service and increased marketing programs, staff is anticipating an increase in revenue. Chair Busch congratulated staff and noted that we are seeing a better handle on our financial situation. Director Katz noted the nation-wide projection increase in gas prices in the news, which will promote additional ridership. Upon a motion by Director Morris, seconded by Director Proo, the Planning and Finance Committee approved and recommended the report to be received and filed. There was no opposition to the motion and the motion passed unanimously. ACTION: The Planning and Finance Committee received and filed this report. 6. Contract RM105-11 Insurance Brokerage Services Recommendation to Award Marsh/Mercer, Inc. Lia McNeil-Kakaris reviewed insurance brokerage services requirements to assist in assessing the various types and levels of insurance coverage required by SCRRA. Ms. McNeil-Kakaris detailed the recommendation to award insurance brokerage services to Marsh/Mercer, Inc. (as a single bidder) in the amount not-to-exceed $255,000 for the base period. The contract will be effective July 1, 2011 for three years through June 30, 2014, with a single two-year option to extend at the Authority s discretion. 3

Planning and Finance Committee Agenda Transmittal Date: June 17, 2011 Meeting Date: April 22, 2011 Page 4 Under this contract the services of an insurance brokerage firm are used in assessing the various types and levels of insurance coverage required by SCRRA and to appropriately place these requirements with insurance carriers on an annual basis as well as provide employee benefit services. Ms. McNeil-Kakaris stated that eight firms requested the solicitation and two firms attended the pre-proposal conference that was held on March 2, 2011. On March 15, 2011, a single proposal was received from Marsh/Mercer, Inc. Director Morris asked about the cost analysis for a sole bidder and if we compared the analysis with other computer railroads for similar rates. Ms. McNeil-Kakaris noted the proposal was evaluated by a team comprised of members of the SCRRA staff from the Contracts and Risk Management Departments as well as a representative from the Riverside County Transportation Commission for all phases of the contract. Marsh /Mercer have extensive experience in insurance placement for heavy railroad in the public sector, particularly in transit. Their proposal indicated an excellent comprehension of the SCRRA s insurance requirements and timelines with staff located in Southern California, in addition to Europe and Bermuda, locations that specialize in placement of government entity and heavy rail insurance. Director Glaab asked if the coverage is general liability or across the board; Ms. McNeil- Kakaris replied it is across the board and noted Marsh/Mercer has successfully placed both general liability and property insurance for SCRRA under Contract No. RM103-06 which expires June 30, 2011. Upon a motion by Director Morris, seconded by Director Glaab, the Planning and Finance Committee approved and recommended that the Board authorize the Chief Executive Officer to award Contract No. RM105-11 for Insurance Brokerage Services to the single proposer Marsh/Mercer, Inc. in an amount not-to-exceed $255,000 for the base period. The requested contract term will be for three years with one two-year option. There was no opposition to the motion and the motion passed unanimously. ACTION: The Planning and Finance Committee approved and recommended that the Board approve the proposed Contract RM105-11 Insurance Brokerage Services Recommendation to Award Marsh/Mercer, Inc.. 7. Cooperative Agreement for Funding Positive Train Control with Orange County Transportation Authority Gray Crary, Chief Strategy Officer, reviewed the Cooperative Agreement between Orange County Transportation Authority (OCTA) and SCRRA for funding the Positive Train Control project. Mr. Crary stated the PTC budget is $201.6 million noting that each of the member agencies have contributed significantly with OCTA contributing above their fare share and up front. Mr. Crary explained the details of the subsequent contributions for the all share funding. The agreement makes OCTA s contributions an official document specifying where the funds will be used. Consequently, the Cooperative Agreement document sets up the acknowledgment that OCTA has over contributed above and beyond their fair share and that they should be reimbursed on future all-share type 4

Planning and Finance Committee Agenda Transmittal Date: June 17, 2011 Meeting Date: April 22, 2011 Page 5 projects. Director Katz asked if staff anticipated that this cooperative agreement would be used as a prototype or a template for future member agency agreements as well. Mr. Crary stated yes and that the member agencies CEOs have voiced similar type of contribution issues as a concern and have pushed for clarity as to how and what to do in this type of situation. Director Morris noted Article 2, Section D, which caps Orange County Transit Authorities (OTCA) contribution and if there is an overrun in costs of PTC project, they are not obligated to pay beyond the $4.1 M identified in this agreement; which is a concern if the costs exceed this amount. Would OCTA pay a contributed share or a portion share if the costs indeed exceed what we expect? Mr. Crary noted that staff pressed that point and OCTA was unwilling to make that modification. Practically, what would happen is that staff would go back to all member agencies at the point it is known that the $201.6 M is insufficient, and address it openly between all member agencies. Mr. Gray commented he anticipates that OCTA s position would be that if more money is requested from Orange County, they have already contributed that via over contributing of utilization of their share of all share formulas. Michael Litschi, OCTA, Technical Advisory Committee member addressed Director Morris question pertaining to Article 2, Section D, stating the article was intended only to discuss the $4.14 M that was contributed by OCTA through Section 5307. Mr. Litschi noted OCTA s extent of their contribution from Section 5307 would be limited to $4.14M. However, OCTA s total contribution to the PTC project is upwards of $38 M. Mr. Litschi noted that there is another section in the agreement covering overall over runs in other projects and how those would be dealt with. It is the understanding of OCTA that all member agencies would pay their fair share on projects if there is an over run. Director Morris stated that he wanted it to be noted on record that he is satisfied with that explanation. Upon a motion by Director Katz, seconded by Director Glaab, the Planning and Finance Committee approved and recommended that the Board authorize the Chief Executive Officer to finalize and execute the Cooperative Agreement for Funding Positive Train Control (PTC) with the Orange County Transportation Authority (OCTA). There was no opposition to the motion and the motion passed unanimously. ACTION: The Planning and Finance Committee approved and recommended that the Board authorized the Chief Executive Officer to finalize and execute the Cooperative Agreement for Funding Positive Train Control (PTC) with the Orange County Transportation Authority (OCTA). 8. Quarterly Investment Report Quarter Ended March 31, 2011 Patricia Kataura, Treasurer, Controller, presented the quarterly investment report for the second quarter ending March 31, 2011. This report covers the third quarter ending March 31, 2011. The total portfolio value is $42 M of which $28 M is unrestricted and $14 M is restricted with total earnings for the nine months at $768,000. As of March 31 st, the 5

Planning and Finance Committee Agenda Transmittal Date: June 17, 2011 Meeting Date: April 22, 2011 Page 6 portfolio was temporarily out of compliance. Timing of disbursements and receipts can cause the composition of the portfolio to be temporarily out of compliance; which was rectified in seven days. Ms. Kataura stated we need to ensure that funds are available for sufficient liquidity to meet the cash requirements over the next 6 to 9 months. Director Morris noted that the member agencies need to pay their bills on time. Director Katz noted it is a serious situation that requires Directors assistance to ensure payments are received in a timely manner from member agencies. ACTION: The Planning and Finance Committee received and filed this report. 9. Chief Executive Officer s Report Gray Crary reported on the current cost of fuel noting the four week average is $3.74; average year-to-date is $2.68; and the budgeted amount is at $2.40 per gallon. Therefore, we are currently over budget by $1.4 M on the cost of fuel. Given the steep increase in fuel costs at 60% over budget, fuel costs are impacting the bottomline budget even though there is a fuel conservation program in place which is preserving gallons of fuel. 10. Public Comment At this time Chair Busch inquired if any members of the public wished to address the Committee regarding any items not listed on the agenda, within the subject matter jurisdiction of the Committee. They re being no requests to speak; the Public Comment period was formally closed. 11. Chair s Comments Chair Busch announced that due to the Metrolink relocation to Metro headquarters on May 27 th, there will be no committee meetings. 12. Committee Member Comments Director Morris announced that the Railroad Days in San Bernardino was a big success. The old steam engine was on exhibit as were BSNF and Guardian equipment. There was an 1880 s re-enactment of a train robbery. Director Morris noted his whole staff was dressed up and it was enjoyable for all. Director Katz noted the safety blitz that Metrolink is running to ensure that the public is aware of express trains that will not make all station stops. Director Katz noted it would be a popular commute and a second train set might need to be made ready. 13. Adjournment There being no further business for consideration; the meeting was adjourned at 11:02 a.m. Respectfully submitted, Carrie M. Bates Planning and Finance Committee Secretary 6

SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY TRANSMITTAL DATE: June 17, 2011 MEETING DATE: June 24, 2011 ITEM #4 TO: FROM: SUBJECT: Planning and Finance Committee Chief Strategy Officer GrantsLink Database Update Issue As part of its commitment to keep the Committees and the Board of Directors up-to-date on grants management activities, staff will give a brief overview and demonstration of the GrantsLink Database, the agency s new interim grants database application built on the Access software platform. Recommendation The Planning and Finance Committee may receive and file this report. Background At its March 25 meeting, staff reported that a grants database was being constructed for the purpose of migrating from spreadsheet based record keeping to an interim database system meeting immediate Agency needs to standardize grants related data input, and improve the accessibility and transparency of grants information. At build-out the database will have three main capabilities: 1) Storage and retrieval of grant related data, including start dates, expiration dates, sources and amounts funding individual projects; 2) Reporting on grant expenditures based on billing information; 3) Production of standard reports for various users including grantors, member agencies, executive team and project managers. On May 12, the newly constructed database was implemented, replacing the spreadsheet based process. Since that time, staff has been focused on data validation and reconciliation; expanding the solution to include a limited billing capability and developing reporting templates. As an extension of this effort, staff continues to refine business processes, identify improvement opportunities and document solution requirements. The documentation effort is significant. The current Access database based system represents an interim solution that serves to solidify business requirements and addresses immediate Agency needs while a permanent strategic grants module, integrated with the Agency s Financial Information System (Oracle), is developed and implemented. One Gateway Plaza, 12 th Floor, Los Angeles, CA 90012 7

GrantsLink Database Update Transmittal Date: June 17, 2011 Meeting Date: June 24, 2011 Page 2 Budget Impact There is no immediate budget impact as a result of this status report. Prepared by: Anne Louise Rice, Strategic Programming and Development Manager Bruce Hartwell, Chief Information Officer 8

SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY TRANSMITTAL DATE: June 17, 2011 MEETING DATE: June 24, 2011 ITEM #5 TO: FROM: Planning and Finance Committee Patricia Kataura Controller/Treasurer SUBJECT: Accounts Receivable Report for Period Ending May 31, 2011 Issue This report presents the current Accounts Receivable aging schedule as of May 31, 2011 and discusses the status of receivables that are more than 90 days past due. Recommendation The Planning and Finance Committee may receive and file this report. Background The responsibility of staff in managing the accounts receivable function is to minimize the number of delinquent invoices and ensure that collection activities for delinquencies are conducted in a timely manner. The timely management of accounts receivable is intended to minimize the amount of loss SCRRA will incur due to uncollectable accounts and to improve cash flow. Equal consideration is given to current account receivable balances as well as balances greater than 90 days outstanding. The goal is to constantly follow up on all active balances so that any deterioration of account receivable balances is negligible and managed properly. Staff s consistent collection efforts and timely invoicing continues to demonstrate improved management of the Agency s accounts receivable process. Attachment A represents total outstanding accounts receivable as of May 31, 2011. It provides information on the delinquent accounts by receivable classification and number of days delinquent. Of the $42,625,392 in accounts past due over 90 days, staff believes there is a high probability of collection; $41.3M is due from the five Member Agencies The value of the accounts receivable over 360 days delinquent as of May 31, 2011 is $1,983,559. A status of the major accounts contributing to the delinquent balance is: $437,559 Third Party recollectable work pending final negotiations. One customer, City of Glendale, is responsible for $190,228 of the balance. Approximately $100K of RCTC s outstanding balance will be offset at the end of this fiscal year with operating surplus funds. One Gateway Plaza, 12 th Floor Los Angeles, CA 90012 9

Accounts Receivable Report Ending May 31, 2011 Transmittal Date: June 17, 2011 Meeting Date: June 24, 2011 Page 2 $1,438,250 MTA Call for Projects retention. Staff is scheduled to meet the week of June 17 th with MTA staff to discuss closing out the projects and releasing retention. The value of the accounts receivable 181 to 360 days delinquent as of May 31, 2011 is $10,800,855. A status of the major accounts contributing to the delinquent balance is: $10,041,837 relates to RCTC s capital contribution for Rolling Stock. Staff is in process of discussions to provide appropriate support and resolve pending issues. $322,466 Third Party recollectable work with CalTrans pending final negotiations. The value of the accounts receivable 91 to 180 days delinquent as of May 31, 2011 is $29,840,975. A status of the major accounts contributing to the delinquent balance is: $22,523,184 This amount reflects OCTA s capital contribution for Rolling Stock. Pending continuing discussion and support requested by OCTA. Staff is in process of meeting with OCTA and providing the supporting documentation necessary to close this issue. $6,824,308 This amount represents MTA capital contribution and direct billing. Meeting scheduled the week of June 17th to resolve any issues and provide final supporting documentation. Staff will return to the Planning and Finance Committee on a quarterly basis to provide a status report on the accounts receivable. The next quarterly report, for the end of Fiscal Year 2010-11, will be presented to the Planning and Finance Committee in September 2011. Budget Impact There is no immediate budget impact as a result of this status report. Prepared by: Lillian Tung, Accounting Specialist, Receivables Edward Enriquez, Manager, Accounting 10

Accounts Receivable Report Ending May 31, 2011 Transmittal Date: June 17, 2011 Meeting Date: June 24, 2011 Page 3 Attachment A Account Total A/R <90 Days 91-180 days 181-360 days Over 360 days % 91-180 % 181-360 % Over 360 Fares Receivable 728,135 716,054 7,020 3,268 1,793 0.96% 0.45% 0.25% Other Receivables 72,023,314 29,410,006 29,833,955 10,797,587 1,981,766 41.42% 14.99% 2.75% Totals $72,751,449 $30,126,060 $29,840,975 $10,800,855 $1,983,559 41.02% 14.85% 2.73% Note: The percentages indicated per aging bucket represent % of line item total. 11

SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY TRANSMITTAL DATE: June 17, 2011 MEETING DATE: June 24, 2011 ITEM #7 TO: FROM: Planning and Finance Committee Doug Linn, Chief People Officer SUBJECT: Evaluation Criteria Request for Proposal No. SP345-12 - Human Resources Consulting Support Services Issue Proposed evaluation criteria have been developed to initiate a competitive process to retain one or more qualified firms to provide consulting services to the Human Resources Department for various employee development programs, leadership and organizational development, and curriculum design. Recommendation Staff requests the Planning and Finance Committee recommend the Board approve the proposed evaluation criteria, detailed in Attachment 1, specifying a weighting of 80% for technical qualifications and 20% for cost to retain one or more firms to provide Human Resources consulting support services. The proposed criteria are consistent with the Evaluation Criteria Policy adopted by the Board. Alternatives The Committee may: 1. Approve different evaluation criteria; and/or 2. Instruct staff to delay or cancel the solicitation of these services. Background In June 2006, the Board awarded the competitively procured Contract Nos. PM217-06 A, B, C, D and E for human resources consultant support services for a base period of three (3) years with one (1) two-(2) year option for a bench of five firms. The term of these contracts expires on October 15, 2011. SCRRA has relied on the services under these contracts to provide human resources training programs for sexual harassment prevention, supervisory education, customer service, ADA sensitivity and awareness, business writing, presentation skills, conducting One Gateway Plaza, 12 th Floor, Los Angeles, CA 90012 12

SP345-12 Human Resources Consultant Services Transmittal Date: June 17, 2011 Meeting Date: June 24, 2011 Page 2 effective meetings and other training programs as needed through Contract Task Orders (CTOs). Staff is recommending that a new competitive procurement be undertaken. The result of the procurement is anticipated to be a bench of several consulting firms, each one qualified to perform one or more of the training programs, leadership and organizational development, coaching and curriculum design services identified above. The firm(s) retained as a result of this solicitation will provide consultant services to support programs managed by the Human Resources Department. The awarded contracts would be managed using CTOs. The CTO process allows for specific definition of tasks and agreement upon a defined cost for the service. If more than one consultant on the bench can perform the required service, such consultant may be requested to provide a cost proposal for the defined service. The consultant providing the best proposal is awarded the CTO. Staff has developed the evaluation criteria outlined below and detailed in Attachment 1 of this agenda item. Qualifications of Firm, Project Manager, and Key Personnel 30% Proposed Approach to Training 30% Presentation/Interview 20% Cost Proposal 20% The period of performance of the resulting contracts is proposed to be for three (3) years with a two-(2) year option to be exercised at the Authority s discretion. The estimated contract value for the bench is $120,000 per year. Budget Impact The process of adopting evaluation criteria has no budget impact. Prepared by: Regina Lopez, Human Resources Representative 13

SP345-12 Human Resources Consultant Services Transmittal Date: June 17, 2011 Meeting Date: June 24, 2011 Page 3 ATTACHMENT 1 Request for Proposal No. SP345-12- Human Resources Consulting Support Services Proposed Evaluation Criteria Technical Proposals received will be evaluated based on the following: Qualifications of Firm 30% Qualifications of the firm in developing and/or delivering a similar 20 program and/or service described in the scope of services. Quality of references (preferably similar public sector clients or 10 Transportation) Qualifications of Assigned Project Team Members 30% Qualifications of project staff, indicating skills, knowledge, and 20 understanding of the program and or service described in the scope of services Availability of project manager and key personnel, including 10 the ability to provide program and/or service at night and on weekends, at multiple locations, and to accommodate schedule changes Presentation/Interview 20% Demonstration of presentation skills or demonstration of how the firm would develop a curriculum design 15 Clarity of communication and responsiveness to questions 5 Cost 20% Reasonableness of fees in relationship to other proposers 20 14