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AOFA FY 2025-26
ANNUAL OPERATIONS FUNDING AGREEMENT
FY 2025-2026
BETWEEN
THE CITY OF MESA
AND
VALLEY METRO RAIL
145-44-2026-18-00-AOFA
THIS ANNUAL OPERATIONS FUNDING AGREEMENT FOR FISCAL YEAR
2025 - 2026 (“Annual Funding Agreement”) is entered into this ______day of _________,
2025, between the City of Mesa, a municipal corporation duly organized and existing under
the laws of the State of Arizona ( “CITY”) and Valley Metro Rail, Inc., a non-profit
corporation, duly organized and existing under the laws of the State of Arizona ( “VMR”).
CITY and VMR are collectively referred to as the “Parties.”
RECITALS
WHEREAS, the Parties entered into a Light Rail Transit Operations Master
Cooperative Funding Agreement ("Master Agreement"), effective November 17, 2008;
and,
WHEREAS, in the Master Agreement, the Parties agreed that annual funding
amounts for the operation of the Light Rail Transit System would be determined by VMR
in cooperation with CITY and that the funding amounts thus determined would be
implemented in this and other Annual Operations Funding Agreements; and,
WHEREAS, VMR’s Board of Directors has unanimously approved the FY2025-
2026 rail operations budget for rail base service in the sum of $108,009.000 (FY2025-
2026 Budget); and,
WHEREAS, CITY’s share of FY2025-2026 Budget for rail operations &
maintenance, security, state of good repair, agency operations, and facility landscaping (for
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AOFA FY 2025-26
the Sycamore Transit Center and Gilbert Road Transit Center and CITY owned land
adjacent to the Mesa Drive Park-and-Ride) for FY2025-2026 totals:
Operations & Maintenance
$ 13,851,000
Security
$ 3,269,000
State of Good Repair
$ 181,000
Agency Operations
$ 720,000
Facility Landscaping
$ 22,000
Total
$ 18,043,000
and;
WHEREAS, this Agreement is intended to implement CITY’s funding obligation
for its share of the FY2025-2026 Budget.
AGREEMENT
IT IS AGREED by the Parties as follows:
SECTION 1. Funding Obligation for FY 2025-2026. CITY shall pay its share of
the FY 2025-2026 budget for rail base service in the sum of EIGHTEEN MILLION
FORTY-THREE THOUSAND DOLLARS ($18,043,000).
SECTION 2. Payment. CITY’s pro-rata monthly contribution for its share of the
FY2025-2026 Budget will be delivered to VMR two (2) days prior to the start of each fiscal
month for which rail transit operations services are to be provided. Payment will be by
delivering or transferring the funds in a manner to be mutually determined by CITY and
VMR staff.
SECTION 3. Integration. This Annual Funding Agreement is subject to the terms and
conditions set forth in the Master Cooperative Funding Agreement between the Parties dated
April 27, 2009, except as otherwise expressly agreed upon herein.
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AOFA FY 2025-26
IN WITNESS WHEREOF, the Parties have executed this Annual Funding
Agreement on the day and year first set forth above.
VALLEY METRO RAIL, INC.
By:_______________________________________
Jessica Mefford-Miller, Chief Executive Officer
APPROVED AS TO FORM
By:______________________________
Michael Wawro, Chief Legal Officer
CITY OF MESA
By:_______________________________
Scott J. Butler, City Manager
ATTEST:
By:_______________________
Holly Mosley, City Clerk
APPROVED AS TO FORM
By:_________________________________
Sarah Steadman, Assistant City Attorney