The Phoenix city council voted 6-2 this morning to approve a recommendation of the City's transit staff to revise language in its contract with Veolia Transportation. The revisions were developed by transit staff in mid-2011 and make contract performance language consistent with industry norms and Federal Transit Administration requirements that penalties be "fair and reasonable." Current penalty language, which was revised today, was not in line with FTA or industry standards.
In 2010, the city council approved an agreement with Veolia which specified that the penalty language would be changed to comply with FTA standards. The council's action today completes this process, which had been underway for many months.
We are proud of Veolia's on-time performance level in Phoenix which is among the highest in the U.S. at 97 percent and significantly higher than other providers here in the Valley.
We thank Mayor Stanton, city council and city staff for their leadership and efforts to get our community moving again.