Agreement

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AOFA FY 2026-27 
 
ANNUAL OPERATIONS FUNDING AGREEMENT  
FY 2026-2027 
BETWEEN 
THE CITY OF MESA 
AND 
VALLEY METRO RAIL 
 
145-44-2026-19-00-AOFA 
 
THIS ANNUAL OPERATIONS FUNDING AGREEMENT FOR FISCAL YEAR 
2026 - 2027 (“Annual Funding Agreement”) is entered into this ______day of _________, 
2026, 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 FY 2026-
2027 rail operations budget for rail base service in the sum of  $129,510,000 (FY 2026-
2027 Budget); and,

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AOFA FY 2026-27 
 
WHEREAS, CITY’s share of FY2026-2027 Budget for rail operations & 
maintenance, security, state of good repair, agency operations, future project development, 
systemwide improvements, and facility landscaping (for the Sycamore Transit Center and 
Gilbert Road Transit Center and CITY owned land adjacent to the Mesa Drive Park-and-
Ride) for FY 2026-2027 totals: 
Operations & Maintenance 
 
$     15,575,000 
Security 
 
 
 
$       3,486,000 
State of Good Repair  
 
$            41,000 
Agency Operations 
 
 
$          704,000 
Facility Landscaping  
 
$            22,000 
Future Project Development  
$       1,023,000 
Systemwide Improvements 
 
$          297,000 
Total  
 
 
 
$      21,148,000 
 
and; 
WHEREAS, this Agreement is intended to implement CITY’s funding obligation 
for its share of the FY 2026-2027 Budget.  
AGREEMENT 
IT IS  AGREED by  the Parties as follows: 
 
SECTION 1. Funding Obligation for FY 2026-2027. CITY  shall pay its share of 
the FY 2026-2027 budget for rail base service in the sum of TWENTY-ONE MILLION 
ONE HUNDRED FORTY-EIGHT THOUSAND DOLLARS ($21,148,000).  
 
SECTION 2.  Payment. CITY’s pro-rata monthly contribution for its share of the 
FY 2026-2027 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 2026-27 
 
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 Moseley, City Clerk 
 
 
 
APPROVED AS TO FORM 
 
By:_________________________________ 
Sarah Steadman, Assistant City Attorney