CITIZENS ADVISORY COMMITTEE and 2000 MEASURE A CITIZENS WATCHDOG COMMITTEE PLEASE NOTE CHANGE IN MEETING LOCATION AGENDA

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1 CITIZENS ADVISORY COMMITTEE and 2000 MEASURE A CITIZENS WATCHDOG COMMITTEE Wednesday, May 10, :00 PM 2000 Measure A Citizens Watchdog Committee (CWC) Public Hearing Agenda Item #10 begins at 6:00 PM (TIME CERTAIN) PLEASE NOTE CHANGE IN MEETING LOCATION VTA Auditorium 3331 North First Street San Jose, CA AGENDA COMMITTEE MISSION STATEMENT: The VTA CAC provides a communication channel for transportation stakeholders and residents of the county by providing input, analysis, perspective and timely recommendations prior to VTA Board of Director action on transportation policy issues and initiatives. CALL TO ORDER 1. ROLL CALL 2. ORDERS OF THE DAY 3. PUBLIC PRESENTATIONS: This portion of the agenda is reserved for persons desiring to address the Committee on any matter not on the agenda. Speakers are limited to 2 minutes. The law does not permit Committee action or extended discussion on any item not on the agenda except under special circumstances. If Committee action is requested, the matter can be placed on a subsequent agenda. All statements that require a response will be referred to staff for reply in writing. 4. Receive Committee Staff Report. (Verbal Report) (Quigley) Update on recent special events and augmented transit service.

2 Santa Clara Valley Transportation Authority Citizens Advisory Committee Wednesday, May 10, Receive Chairperson's Report. (Verbal Report) (Wadler) 6. Receive Committee for Transportation Mobility and Accessibility (CTMA) Report. (Verbal Report) (Morrow) 7. Receive Bicycle and Pedestrian Advisory Committee (BPAC) Report. (Verbal Report) (Wadler) COMBINED CAC AND 2000 MEASURE A CITIZENS WATCHDOG COMMITTEE CONSENT AGENDAS 8. ACTION ITEM - Approve the Regular Meeting Minutes of April 12, INFORMATION ITEM - Review the Legislative Update Matrix MEASURE A CITIZENS WATCHDOG COMMITTEE REGULAR AGENDA 10. ACTION ITEM -Conduct, as part of the May 10, 2017 Citizens Advisory Committee/Citizens Watchdog Committee meeting, the required 2000 Measure A Citizens Watchdog Committee (CWC) public hearing to receive input from the public on the Measure A Program, its expenditures, the results of the CWC s annual independent compliance audit, and on 2000 Measure A Program reports for the period of FY (Begins at 6:00 p.m. TIME CERTAIN) CITIZENS ADVISORY COMMITTEE REGULAR AGENDA 11. ACTION ITEM - Recommend that the VTA Board of Directors adopt the 2016 Measure B Program Area Guidelines. 12. DISCUSSION ITEM- Review and discuss the Fiscal Years 2018 and 2019 Proposed Biennial Budget. 13. ACTION ITEM - Recommend that the VTA Board of Directors: 1. Adopt a finding that a fare increase is necessary to meet operating expenses, including employee wages and fringe benefits and purchasing or leasing supplies, equipment, or materials. 2. Invoke a Statutory Exemption under CEQA, P. R.C (b)(8) and CEQA Guidelines Section 15273(a) (Rates, Tolls, Fares and Charges) for the purpose of modifying and increasing fares. 3. Adopt a resolution establishing rates and fares for VTA bus, light rail, and paratransit services effective January 1, Adopt a resolution establishing rates and fares for VTA bus, light rail, and paratransit services effective January 1, INFORMATION ITEM - Receive the Development Review Quarterly Report for January to March Page 2 of 3

3 Santa Clara Valley Transportation Authority Citizens Advisory Committee Wednesday, May 10, 2017 COMBINED CAC AND CITIZENS WATCHDOG COMMITTEE ITEMS 15. Review the Citizens Advisory Committee and Citizens Watchdog Committee Work Plans. OTHER 16. ANNOUNCEMENTS 17. ADJOURN In accordance with the Americans with Disabilities Act (ADA) and Title VI of the Civil Rights Act of 1964, VTA will make reasonable arrangements to ensure meaningful access to its meetings for persons who have disabilities and for persons with limited English proficiency who need translation and interpretation services. Individuals requiring ADA accommodations should notify the Board Secretary s Office at least 48-hours prior to the meeting. Individuals requiring language assistance should notify the Board Secretary s Office at least 72-hours prior to the meeting. The Board Secretary may be contacted at (408) or board.secretary@vta.org or (408) (TTY only). VTA s home page is on the web at: or visit us on Facebook at: (408) : 中文 / Español / 日本語 / 한국어 / tiếng Việt / Tagalog. All reports for items on the open meeting agenda are available for review in the Board Secretary s Office, 3331 North First Street, San Jose, California, (408) , the Wednesday, Thursday, and Friday prior to the meeting. This information is available on VTA s website at and also at the meeting. Page 3 of 3

4 8 CITIZENS ADVISORY COMMITTEE and 2000 MEASURE A CITIZENS WATCHDOG COMMITTEE CALL TO ORDER Wednesday, April 12, 2017 MINUTES The Regular Meeting of the Citizens Advisory Committee (CAC)/2000 Measure A Citizens Watchdog Committee (CWC) was called to order at 4:00 p.m. by Chairperson Wadler in Conference Room B-106, VTA River Oaks Campus, 3331 North First Street, San Jose, California. 1. ROLL CALL Attendee Name Title Status Stephen Blaylock Member Present Aneliza Del Pinal Member Present Chris Elias Member Present Sharon Fredlund Vice Chairperson Present William Hadaya Member Present Ray Hashimoto Member Present Aaron Morrow Member Present Chris O'Connor Member Present Charlotte Powers Member Present Connie Rogers Member Present Martin Schulter Member Present Noel Tebo Member Present Herman Wadler Chairperson Present A quorum was present. 2. ORDERS OF THE DAY Jim Lawson, Senior Policy Analyst and Staff Liaison, noted staff requested the following changes to the agenda: 1) Agenda Item #17, BART Silicon Valley Program Semi- Annual Update, be removed from the 2000 Measure A Citizens Watchdog Committee Regular Agenda and placed on the Citizens Advisory Committee Regular Agenda and; 2) Agenda Item #21, Draft 2016 Measure B Program Areas Transit Operations, be heard before Agenda Item #19, Draft 2016 Measure B Program Areas County Expressways.

5 8 3. PUBLIC PRESENTATIONS: There were no Public Presentations. 4. Committee Staff Report Member Schulter arrived at the meeting at 4:02 p.m. and took his seat. Mr. Lawson reported the VTA Board of Directors (Board) took the following actions at their April 6, 2017, meeting: 1) authorized VTA General Manager (GM) to enter into an Exclusive Negotiations Agreement (ENA) with Republic Tamien, LLC for a joint development project at the Tamien Station; 2) approved a contract with Sposeto Engineering for construction of Rapid 523 Bus Stop Improvements; 3) approved revising the evaluation criteria and procedures for selecting projects and awarding Vehicle Emissions Reductions Based at Schools (VERBS) Program grants; 4) announced VTA s Alum Rock/Santa Clara Bus Rapid Transit (BRT) service began on Monday, April 10, 2017; 5) VTA celebrated five years successful operation of Express Lanes on State Route (SR) 237 between North First Street and I-880; 6) VTA GM/CEO Nuria Fernandez will co-lead the Movers and Shakers bike ride with Silicon Valley Bicycle Coalition on Bike to Work Day, Thursday, May 11, 2017; Committee members are invited to participate; 7) VTA Board of Directors Budget Workshop will take place Friday, April 21, 2017, at 9:00 a.m., in the County Board Chambers at 70 West Hedding Street; 8) update on the passage of Senate Bill (SB) 1 (Beall) and clarification of litigation on the validity of Cap and Trade, and; 9) VTA is seeking applicants for the 2016 Measure B Oversight Committee; interested parties can apply on-line and the deadline is April 21, Chairperson's Report Member Elias arrived at the meeting at 4:15 p.m. and took his seat. Chairperson Wadler reported the following: 1) BART Silicon Valley bus tour took place on April 8, 2017; 2) Committee will recognize former Member Clinton Brownley at the May 10, 2017, meeting, and; 3) The Citizen s Watchdog Committee (CWC) auditor will address Jim Stallman s concern regarding the use of 2000 Measure A funds for the Tasman Pocket Track Project, under Agenda Item #14, Compliance Audit Report on 2000 Measure A Program Revenues and Expenditures for FY16. Member Tebo reported that the Membership Structure Subcommittee is currently having discussions with a number of organizations regarding their interest in having a representative that could provide valuable feedback to the Committee and stakeholder groups. 6. Committee for Transportation Mobility and Accessibility (CTMA) Report There was no Committee for Transportation Mobility and Accessibility (CTMA) Report. 7. Bicycle and Pedestrian Advisory Committee (BPAC) Report There was no Bicycle and Pedestrian Advisory Committee (BPAC) Report. Citizens Advisory Committee Page 2 of 9 Wednesday, April 12, 2017

6 8 COMBINED CAC AND 2000 MEASURE A CITIZENS WATCHDOG COMMITTEE CONSENT AGENDAS 8. Regular Meeting Minutes of March 8, 2017 M/S/C (Morrow/Fredlund) to approve the Regular Meeting Minutes of March 8, Santa Clara Request for Vehicle Registration Fee-Intelligent Transportation System Funding M/S/C (Morrow/Fredlund) to recommend that the VTA Board of Directors approve the programming of $20,000 of Vehicle Registration Fee (VRF) Countywide Program Intelligent Transportation System (ITS) funds for the City of Santa Clara s Citywide Network Repair and Troubleshooting project. 10. Vehicle Registration Fee Funds for Soundwall Plans, Specifications & Estimates M/S/C (Morrow/Fredlund) to recommend that the VTA Board of Directors program an additional $500,000 in Vehicle Registration Fee (VRF) Countywide Matching funds for the Soundwall Project on I-680 between Capitol Expressway and Mueller Avenue in San Jose. 11. Citizens Advisory Committee (CAC) Quarterly Attendance Report M/S/C (Morrow/Fredlund) to receive the Citizens Advisory Committee Quarterly Attendance Report. 12. Status Update on Complete Streets Corridor Studies M/S/C (Morrow/Fredlund) to receive the status update on Complete Streets Corridor Studies. 13. Legislative Update Matrix M/S/C (Morrow/Fredlund) to review the Legislative Update Matrix. RESULT: APPROVED [UNANIMOUS] (Consent Agenda Items #8-13) MOVER: Morrow, Member SECONDER: Fredlund, Member AYES: Blaylock, Del Pinal, Elias, Hadaya, Hashimoto, Morrow, O Connor, Powers, Rogers, Schulter, Tebo, Fredlund, Wadler NOES: None ABSENT: None NOTE: M/S/C MEANS MOTION SECONDED AND CARRIED AND, UNLESS OTHERWISE INDICATED, THE MOTION PASSED UNANIMOUSLY. Citizens Advisory Committee Page 3 of 9 Wednesday, April 12, 2017

7 MEASURE A CITIZENS WATCHDOG COMMITTEE REGULAR AGENDA 14. Compliance Audit Report on 2000 Measure A Program Revenues and Expenditures for FY16 Mr. Lawson introduced Eugene Ma of the certified Public Accountants Macias, Gini & O Connell, LLP (MGO) for compliance auditing services for the 2000 Measure A Citizens Watchdog Committee. Mr. Ma provided a brief overview of the Compliance Audit Report on 2000 Measure A Program Revenues and Expenditures for FY16. Mr. Ma referenced Mr. Stallman s concern regarding the use of 2000 Measure A Funds for the Tasman Pocket Track project, and stated after consulting VTA staff and Counsel, it was determined the pocket track expenditures were reasonable and within the guidelines of the 2000 Measure A project. Member Rogers expressed appreciation for the detail on swap funds. M/S/C (Morrow/Rogers) to receive and accept the compliance audit report from the Citizens Watchdog Committee's independent compliance auditor on Fiscal Year Measure A revenues and expenditures. RESULT: APPROVED [UNANIMOUS] MOVER: Morrow, Member SECONDER: Rogers, Member AYES: Blaylock, Del Pinal, Elias, Hadaya, Hashimoto, Morrow, O Connor, Powers, Rogers, Schulter, Tebo, Fredlund, Wadler NOES: None ABSENT: None 15. Determine Date and Location of CWC Public Hearing Stephen Flynn, Senior Management Analyst and Advisory Committee Coordinator, provided the staff report. M/S/C (Tebo/Hadaya) to conduct the 2000 Measure A Citizens Watchdog Committee s public hearing on FY 2016 Measure A expenditures on Wednesday, May 10, 2017, at 6:00 p.m. in the Auditorium at the VTA River Oaks Campus. Citizens Advisory Committee Page 4 of 9 Wednesday, April 12, 2017

8 8 RESULT: APPROVED [UNANIMOUS] MOVER: Tebo, Member SECONDER: Hadaya, Member AYES: Blaylock, Del Pinal, Elias, Hadaya, Hashimoto, Morrow, O Connor, Powers, Rogers, Schulter, Tebo, Fredlund, Wadler NOES: None ABSENT: None 16. Publication Strategy for Combined Public Hearing Notice and Compliance Audit Results Mr. Flynn provided an overview of the staff report and a presentation entitled "2000 Measure A Citizens Watchdog Committee Recommended Publication Strategy Combination Public Hearing & Audit Results on FY16. Members of the Committee discussed the following: 1) formatting corrections, and; 2) suggested switching FY Measure A Program Expenditures to 2000 Measure A FY 2016 Expenditures to avoid confusion. M/S/C (Schulter/Del Pinal) to approve the combination public notice and publication strategy announcing the 2000 Measure A Citizens Watchdog Committee s public hearing and the results of the independent compliance audit on FY 2016 Measure A revenues and expenditures. RESULT: APPROVED [UNANIMOUS] MOVER: Schulter, Member SECONDER: Del Pinal, Member AYES: Blaylock, Del Pinal, Elias, Hadaya, Hashimoto, Morrow, O Connor, Powers, Rogers, Schulter, Tebo, Fredlund, Wadler NOES: None ABSENT: None Mr. Flynn and Tammy Dhanota, Public Communications Specialist II, provided an overview of the publication strategy. Members of the Committee discussed the following: 1) age demographic targets for social media; 2) cross-promotion; 3) suggest using NextDoor Social Network, and; 4) recommend full color for all public hearing publication notices. M/S/C (Fredlund/Hadaya) to approve the publication strategy based on full color for all public hearing notices with a total estimated cost of $16, Citizens Advisory Committee Page 5 of 9 Wednesday, April 12, 2017

9 8 RESULT: APPROVED [UNANIMOUS] MOVER: Fredlund, Member SECONDER: Hadaya, Member AYES: Blaylock, Del Pinal, Elias, Hadaya, Hashimoto, Morrow, O Connor, Powers, Rogers, Schulter, Tebo, Fredlund, Wadler NOES: None ABSENT: None 17. (Removed from the 2000 Measure A Citizens Watchdog Committee Regular Agenda and placed on the Citizens Advisory Committee Regular Agenda.) Receive the VTA's BART Silicon Valley Program Semi-Annual Update. CITIZENS ADVISORY COMMITTEE REGULAR AGENDA 18. Next Network Final Plan Adam Burger, Senior Transportation Planner, and Jim Unites, Executive Manager, Transit Planning & Capitol Development, provided an overview of the staff report and a presentation entitled Proposed Final Transit Service Plan," highlighting: 1) Project Goals; 2) Project Timeline; 3) Phase II Outreach; 4) 34 Changes from Draft Plan to Final Plan; 5) Reallocation of Service Hours; 6) Boardings Per Revenue Hour (Weekdays); 7) Subsidy Per Ride (Weekdays); 8) Expand Frequent Network; 9) Enhance Light Rail System; 10) More Weekend Service; 11) Connections to BART Stations; 12) Service Hierarchy; 13) Expanding Potential Transit Market; 14) Ridership Projections; 15) Paratransit Impacts; 16) Title VI Equity Analysis; 17) Existing Network; 18) Final Plan; 19) Weekend Final Plan, and; 20) Next Steps. Members of the Committee discussed the following: 1) expressed concern that construction related impacts in downtown San Jose for BART Phase 2 work will cause disruption to new routes; 2) consider mitigation measures to accommodate access to San Jose State University; 3) expressed appreciation that impact and mobility service for paratransit users were considered; 4) Member Hashimoto disclosed he had received a letter from Interested Citizen, James Nakamura, offering suggestions and expressing concern about potential route changes. He stated he forwarded the letter to Mr. Flynn and the letter was available to Committee members; 5) transit ridership trends; 6) service from Berryessa BART station to the San Jose Airport and Levi s/avaya Stadium events; 7) Route 120 service options; 8) expressed appreciation for staff s in-depth analysis, community outreach and explanatory materials; 9) clarification of proposed Morgan Hill service; 10) clarification of proposed Route 27; 11) expressed appreciation for the move to an all-day transit network, and; 12) coordinate routes with San Jose State class schedules. Citizens Advisory Committee Page 6 of 9 Wednesday, April 12, 2017

10 8 Public Comment Joyce, Interested Citizen, expressed concern with the following: 1) the proposed changes to Almaden Valley Route 63 and resulting community impacts, and; 2) timing of the implementation. Staff stated changes to service will begin with the opening of the Berryessa BART station. M/S/C (Schulter/Blaylock) to recommend that the VTA Board of Directors adopt the Final VTA Transit Service Plan. RESULT: APPROVED [UNANIMOUS] MOVER: Schulter, Member SECONDER: Blaylock, Member AYES: Blaylock, Del Pinal, Elias, Hadaya, Hashimoto, Morrow, O Connor, Powers, Rogers, Schulter, Tebo, Fredlund, Wadler NOES: None ABSENT: None Agenda Items #19, 20 and 21 were heard together. 19. Draft 2016 Measure B Program Areas - County Expressways 20. Draft 2016 Measure B Program Areas - Highway Interchanges 21. Draft 2016 Measure B Program Areas - Transit Operations Jane Shinn, Senior Management Analyst, provided an overview of the staff report, and a presentation entitled 2016 Measure B Program Areas, highlighting: 1) 2016 Measure B Program Areas - Transit Operations; 2) Transit Operations - Program Description; 3) Transit Operations - Proposed Guidelines; 4) 2016 Measure B Program Areas - County Expressways; 5) County Expressways - Program Description; 6) County Expressways - Proposed Guidelines; 7) 2016 Measure B Program Areas - Highway Interchange; 8) Highway Interchanges - Program Description, and; 9) Highway Interchanges - Proposed Guidelines. Members of the Committee and staff discussed the following: 1) 2016 Measure B funding eligibility for bus stop improvements; 2) prioritization of projects; 3) community concern about the visual impact of tree removal on county expressway projects; 4) clarification of contribution sources for county expressways projects, and; 5) litter abatement. Citizens Advisory Committee Page 7 of 9 Wednesday, April 12, 2017

11 8 On order of Chairperson Wadler and there being no objection, the Committee reviewed and discussed Draft 2016 Measure B - Transit Operations Program Area. On order of Chairperson Wadler and there being no objection, the Committee reviewed and discussed Draft 2016 Measure B - County Expressways Program Area. On order of Chairperson Wadler and there being no objection, the Committee reviewed and discussed Draft 2016 Measure B - Highway Interchanges Program Area. 17. VTA s BART Silicon Valley Program Semi-Annual Update Dennis Ratcliffe, Interim Director of Planning & Program Development, provided an overview of the staff report and a presentation entitled BART Silicon Valley Program Semi-Annual Update Phase I, highlighting: 1) SVRT Program Cost Summary; 2) Berryessa Extension Cost Summary; 3) Berryessa Extension Summary Schedule; 4) Status of Contracts; 5) Construction Progress (Milpitas Station) Start of Construction; 6) Construction Progress - Milpitas Station; 7) Construction Progress (Berryessa Station) Start of Construction; 8) Construction Progress - Berryessa Station; 9) Construction Progress - Sierra/Lundy; 10) Community Outreach Activities; 11) BART Warm Springs Station Opening; 12) BART Silicon Valley Program Semi-Annual Update Phase II Extension to Santa Clara; 13) Environmental & Community Working Groups, and; 14) Technical Studies. Members of the Committee and staff discussed the following: 1) BART Warm Springs service plan; 2) production status of new BART vehicles; 3) vehicle and guideway infrastructure testing and certification is currently underway and will meet design criteria, and; 4) studies are underway on how to connect San Jose Mineta Airport to Diridon Station. On order of Chairperson Wadler and there being no objection, the Committee received VTA s BART Silicon Valley Program Semi-Annual Update. COMBINED CAC AND CITIZENS WATCHDOG COMMITTEE ITEMS 22. Review the Citizens Advisory Committee and Citizens Watchdog Committee Work Plans. OTHER On order of Chairperson Wadler and there being no objection, the Committee reviewed the Citizens Advisory Committee and Citizens Watchdog Committee Work Plans. 23. ANNOUNCEMENTS There were no Announcements. Citizens Advisory Committee Page 8 of 9 Wednesday, April 12, 2017

12 8 24. ADJOURN On order of Chairperson Wadler and there being no objection, the meeting was adjourned at 6:01 p.m. Respectfully submitted, Anita McGraw, Board Assistant VTA Office of the Board Secretary Citizens Advisory Committee Page 9 of 9 Wednesday, April 12, 2017

13 9 Date: April 19, 2017 Current Meeting: May 10, 2017 Board Meeting: June 1, 2017 BOARD MEMORANDUM TO: THROUGH: FROM: SUBJECT: Santa Clara Valley Transportation Authority Citizens Advisory Committee General Manager, Nuria I. Fernandez Director of Government & Public Relations, Jim Lawson Legislative Update Matrix FOR INFORMATION ONLY BACKGROUND: The Legislative Update Matrix summarizes the key bills that are being considered by the California State Legislature during the first year of the regular session. The matrix indicates the status of these measures and any VTA positions with regard to them. DISCUSSION: The purpose of this report is to provide an update on important transportation-related issues and legislation facing lawmakers in Sacramento. Environmental Protection: The Senate has introduced three bills that attempt to insulate the state from any rolling back of federal regulations related to air quality, clean water, endangered species, and workers rights that may occur in Washington, DC. This bill package also seeks to protect federal lands within California from being sold to private developers for resource extraction, ensure that federal employees are not penalized under state law for whistleblowing, and shield public information and data resources from federal censorship or destruction. The main piece of legislation in the package is SB 49 (de Leon and Stern), which prohibits state and local agencies from adopting rules that are less stringent than those currently in place under the federal Clean Air, Clean Water, Safe Drinking Water, and Endangered Species Acts. In addition, the bill prohibits state and local agencies from adopting rules that are less stringent than the federal standards that are currently in place for worker safety. Meanwhile, SB 50 (Allen) aims to discourage the transfer of ownership of federal public lands within the state to private developers for resource extraction. It specifies that conveyances of federal public lands within California are void unless the State Lands Commission was provided

14 9 with the right of first refusal to the conveyance, or the right to arrange for the transfer of the property to another entity. Finally, SB 51 (Jackson) ensures that federal employees in California will not lose any professional state licenses that they hold for revealing violations of law, unethical actions, or threats to public health and safety. In addition, the bill directs state environmental and public health agencies to protect any information or data, even if parties in Washington, DC, order their censorship or destruction. State Transit Assistance Program (STA): STA was created through the enactment of the Transportation Development Act in the early 1970s. Funding for the program is derived solely from the sales tax on diesel fuel. The State Controller s Office is responsible for allocating STA dollars to regional transportation planning agencies (RTPAs) and metropolitan planning organizations (MPOs) in California in the following manner: 50 percent of all STA funding flows from the Controller s Office to regions based on the ratio of the population of each region to the population of the state. Each regional agency has the discretion to determine how to suballocate these population-based dollars to eligible STA recipients within its jurisdiction. 50 percent of all STA funding flows from the Controller s Office to regions based on a calculation that takes into consideration the locally generated operating revenues of the public transit operators in the region in comparison to the rest of the state. Each regional agency is required to suballocate these revenue-based dollars to public transit operators within its jurisdiction based on the specific operator shares published by the Controller s Office. In FY 2016, the Controller s Office, based on advice from its legal counsel, implemented changes to the methodology used to calculate a public transit operator s share of STA revenuebased funds. These changes impacted all public transit operators in California to varying degrees. In response, the Legislature included in SB 838, the FY 2017 transportation budget trailer bill, provisions that temporarily deferred the implementation of these changes by requiring the Controller s Office to use the same list of eligible recipients and the same proportional operator shares from the fourth quarter of FY 2015 to distribute any unallocated FY 2016, and all FY 2017 and FY 2018 STA revenue-based funds. Subsequent to the enactment of SB 838, the California Transit Association worked with its member agencies and the Controller s Office to develop a consensus on a follow-up policy bill to address the ambiguities in the current STA statutory and regulatory framework that may have been the source of confusion. This consensus has been incorporated into AB While primarily technical in nature, AB 1113 does provide clarity to such important issues as: (1) who is eligible to receive STA revenue-based funds; (2) what revenue sources may be used to determine a public transit operator s revenue-based share; (3) how an individual operator s revenue-based share is to be calculated; and (4) how RTPAs and MPOs, which serve as the Page 2 of 5

15 9 direct recipients of STA population- and revenue-based funds, are to suballocate these dollars to public transit operators within their respective jurisdictions. Fare Evasion and Passenger Misconduct Violations: In 2012, legislation was enacted to allow a public transit agency to impose and enforce civil administrative penalties for fare evasion and passenger misconduct violations in lieu of criminal penalties. There are a number of advantages to this approach. First, an administrative process does not require the citing officer to appear in court, whereas a trial does. Therefore, public transit security officers would be able to spend less time in court and more time on patrol, thereby enhancing the safety and security of their systems. Second, an administrative process allows public transit agencies to have immediate access to information on the status of individual citations and the penalties assessed, rather than having to track this information down from the courts. Third, an administrative process offers fare evaders and other violators a less confrontational setting than a criminal proceeding, while still affording them the right to a full hearing should they so choose. However, current state law requires any administrative fines to be allocated to the general fund of the county where the citation was issued, not to the public transit agency. In other words, a public transit agency would incur one-time costs to set up the administrative process, as well as ongoing costs to implement it, but would have to cover these added expenses through its existing operating budget, which would impact the resources that would be available for providing transit service. At the same time, the county would realize cost savings by no longer having to process these cases through the courts, while receiving a revenue windfall from the administrative fines. This situation has proved to be a major disincentive for public transit agencies to transition from criminal penalties to an administrative process for handling fare evasion and passenger misconduct violations. To address this issue, the California Transit Association is sponsoring SB 614 (Hertzberg), which seeks to remove the barriers in current law that are deterring public transit agencies from switching to an administrative process in lieu of criminal penalties for fare evasion and passenger misconduct violations. In particular, this bill allows the fine revenues to be kept by the public transit agency to help cover the costs associated with implementing the administrative process. In addition, SB 614 caps the administrative fines that the public transit agency could impose for the first and second violation at $125, and for the third and any subsequent violation at $200. The legislation also requires the public transit agency to offer a minor or a person proving financial hardship the option of community service, which may be performed at the agency s facilities, in lieu of paying the administrative fine. These provisions are intended to ease the burden on students and low-income individuals in terms of remedying minor transit violations. Express Lanes: There are a number of pieces of legislation that have been introduced relating to high-occupancy vehicle (HOV) and express lanes. AB 544 (Bloom) is the latest in a string of bills that address the use of HOV and express lanes by low-emission vehicles. Under the state s existing Clean Air Vehicle Program, certain low-emission vehicles are exempt from the occupancy requirements for using HOV lanes if they display a sticker issued by the Department of Motor Vehicles (DMV). In addition, these vehicles are allowed to access express lanes for free or at a discounted toll rate. The purpose of the program is to provide incentives to Page 3 of 5

16 9 encourage Californians to purchase such vehicles. Under the Clean Air Vehicle Program, the DMV issues two types of stickers -- white and green. Pure battery electric, dedicated compressed natural gas, liquid petroleum gas, and hydrogen fuel cell vehicles, such as the Nissan Leaf, Tesla Model S and Toyota Mirai, are eligible for white stickers. Vehicles eligible for green stickers are generally plug-in hybrids, such as the Chevrolet Volt, Ford C-Max Energi, Honda Accord Plug-in Hybrid, and Toyota Prius Plug-in. AB 544 sets expiration dates for white and green stickers, depending on when a particular sticker was issued to the motorist. Under the provisions of this measure, the stickers are generally valid for up to four years. AB 697 (Fong) exempts privately owned ambulances from paying tolls on express lanes and other tolled facilities when responding to an emergency. Meanwhile, SB 406 (Leyva) allows vehicles that are transporting blood between collection points and hospital or storage centers to use HOV lanes without the required number of occupants. This legislation also requires these vehicles to be granted toll-free or reduced-rate passage when using an express lane. Finally, AB 344 (Melendez) prohibits tolling agencies from requiring a person who is contesting a toll evasion violation to pre-pay the associated penalty at the time an appeal is sought. Instead, the bill requires the penalty to be paid, if necessary, following the results of an administrative review or upon a finding by a court, whichever occurs later. Project Delivery: There are three bills -- AB 1454 (Bloom), SB 422 (Wilk) and SB 768 (Allen) -- that seek to re-enact and make permanent the authority for Caltrans and regional transportation agencies, as defined, to utilize public-private partnerships for projects on the state highway system. This statutory authority expired on January 1, Over the past several years, there have been any number of measures that have tried to address this issue. None of them passed the Legislature, primarily because of opposition from the Professional Engineers in California Government (PECG), the union representing engineers employed by Caltrans and other state agencies. AB 1282 (Mullin) directs the California State Transportation Agency (CalSTA) to create a task force to establish a process for early engagement of all parties involved in transportation project development in order to: (1) reduce environmental permit processing times; (2) put in place reasonable deadlines for permit approvals; and (3) provide for greater certainty of permit approval requirements. The bill is based on a recommendation made by the California Transportation Commission (CTC) in its annual report to the Legislature. According to the CTC, current state environmental permitting processes for transportation projects lead to increased costs and less efficient project delivery. In its report, the CTC noted, Early engagement of permitting agencies and a commitment to reasonable deadlines for permit approvals would improve the predictability and management of the project development process and, in turn, reduce the cost of delivering critical infrastructure. Security: SB 21 (Hill) requires a public agency that uses surveillance technologies for safety and security purposes to adopt a Surveillance Use Policy. This policy must address eight different items for each surveillance technology that the public agency employs, including the Page 4 of 5

17 9 authorized purposes for which a particular surveillance technology is being used, the types of data that would be collected from the technology, a description of how the technology will be monitored to ensure compliance with privacy laws, and how collected information can be accessed by members of the public. In addition, the legislation requires a public agency to amend its Surveillance Use Policy whenever it acquires a new surveillance technology in order to incorporate that technology into the policy. Prepared By: Kurt Evans, Government Affairs Manager Memo No Page 5 of 5

18 102B LEGISLATIVE UPDATE MATRIX State Legislative Session 2BApril 21, a 2017 Regular Session Calendar DAY 4BJANUARY 1 Statutes signed into law in 2016 take effect. 4 Legislature reconvenes. 10 Budget must be submitted by the Governor to the Legislature on or before this date. 20 Last day to submit bill requests to the Legislative Counsel s Office. DAY 5BFEBRUARY 17 Last day for new bills to be introduced. DAY MARCH None. DAY 6BAPRIL 6 Spring Recess begins upon adjournment. 17 Legislature reconvenes from Spring Recess. 28 Last day for policy committees to hear and report fiscal bills introduced in their house of origin. DAY 7BMAY 12 Last day for policy committees to hear and report to the floor non-fiscal bills introduced in their house of origin. 26 Last day for fiscal committees to hear and report to the floor bills introduced in their house of origin. DAY 8BJUNE 2 Last day for bills to be passed out of their house of origin. 15 Budget must be passed by midnight. 41BDAY 9BJULY 14 Last day for policy committees to hear and report fiscal bills introduced in the other house. 21 Last day for policy committees to hear and report non-fiscal bills introduced in the other house. Summer Recess begins upon adjournment, provided that the Budget Bill has been enacted. DAY 10BAUGUST 21 Legislature reconvenes from Summer Recess. DAY 1BSEPTEMBER 1 Last day for fiscal committees to hear and report to the floor bills introduced in the other house. 8 Last day to amend bills on the Assembly and Senate floors. 15 Last day for each house to pass bills. Interim Recess begins at the end of this day s session. DAY 12BOCTOBER 15 Last day for the Governor to sign or veto bills passed by the Legislature before September 15, and in his possession on or after September Legislative Update Matrix

19 9.a State Assembly Bills State Assembly Bills Subject Last Amended Status VTA Position AB 1 (Frazier) Transportation Funding Creates the Road Maintenance and Rehabilitation Account to be funded from the following sources: (1) an increase in the gasoline excise tax of 12 cents per gallon, which would be indexed to inflation every three years; (2) a registration surcharge of $38 per year imposed on all motor vehicles, which would be indexed to inflation every three years; (3) a registration surcharge of $165 per year imposed on zero-emission vehicles starting with the second year of ownership, which would be indexed to inflation every three years; and (4) revenues obtained by Caltrans through the rental or sale of property, the sale of documents, and charges for other miscellaneous services provided to the public. Distributes the revenues deposited into the Road Maintenance and Rehabilitation Account in the following manner: (1) $200 million per year would be taken off the top for allocation to local jurisdictions that have sought and gained voter approval of a local transportation special tax, or that have imposed uniform developer or other fees solely for transportation improvements; (b) $80 million per year would be taken off the top and distributed to the Active Transportation Program; (c) for FY 2018 through FY 2021, $30 million per year would be taken off the top to be used to fund the implementation of advance environmental mitigation plans for future transportation projects; (4) $2 million per year would be taken off the top and distributed to the California State University to conduct transportation research, and transportationrelated workforce education, training and development; (5) $3 million would be taken off the top and distributed to the University of California for institutes of transportation studies; (6) 50 percent of the amount remaining after the aforementioned set-asides would be allocated to Caltrans for maintenance of the state highway system, and for projects programmed in the State Highway Operation and Protection Program (SHOPP); and (6) 50 percent of the amount remaining after the aforementioned set-asides would be provided to cities and counties for their local roadway systems. Provides new funding for public transit through the following sources: (1) an increase in the diesel sales tax by a rate of 3.5 percent for the State Transit Assistance Program (STA); (2) an increase in the percentage of cap-and-trade auction proceeds continuously appropriated to the Transit and Intercity Rail Capital Program from 10 percent to 20 percent; and (3) an increase in the percentage of cap-and-trade auction proceeds continuously appropriated to the Low Carbon Transit Operations Program from 5 percent to 10 percent. Increases the diesel excise tax by 20 cents per gallon, which would be indexed to inflation every three years, and deposits these revenues into the Trade Corridors Improvement Fund for goods movement projects programmed by the California Transportation Commission (CTC). Requires revenues apportioned to California from the formulabased National Highway Freight Program to be deposited into the Trade Corridors Improvement Fund. Converts the variable gas tax to a fixed rate of 17.3 cents per gallon, which would be indexed to inflation every three years. Requires the repayment of approximately $700 million in outstanding loans owed by the General Fund to various transportation accounts over a two-year period ending June 30, Distributes these one-time revenues in the following manner: (1) 50 percent to Caltrans for maintenance of the state highway system, and for SHOPP projects; and (2) 50 percent to cities and counties for their local roadway systems. Recaptures $500 million of the annual amount of vehicle weight fee revenues for the State Highway Account over a five-year period ending June 30, As Introduced Assembly Transportation Committee Support Legislative Update Matrix

20 9.a State Assembly Bills Subject Last Amended Status VTA Position AB 5 (Gonzalez-Fletcher) Opportunity to Work Act Enacts the Opportunity to Work Act. Requires an employer with 10 or more employees to offer additional hours of work to an existing employee who, in the employer s reasonable judgment, has the skills and experience to perform the additional work, before hiring any additional employees or subcontractors. Requires an employer to use a transparent and non-discriminatory process to distribute the additional hours of work among existing employees. Specifies that an employer shall not be required to offer an existing employee additional work hours if the employer would be required to compensate the employee with overtime pay under any law or collective bargaining agreement. Requires an employer to retain all of the following: (1) for any new hire of an employee or subcontractor, documentation that the employer offered additional hours of work to existing employees prior to hiring the new employee or subcontractor; (2) work schedules of all employees; and (3) any additional records or documents that the Division of Labor Standards Enforcement requires an employer to maintain to demonstrate compliance with this bill. Authorizes the Division of Labor Standards Enforcement to adopt rules and regulations to carry out the provisions of the bill. Allows an employee to file a complaint for a violation of the provisions of the bill with the Division of Labor Standards Enforcement or bring a civil action in a court of competent jurisdiction. Provides that it is unlawful for an employer or any other party to discriminate in any manner or take adverse action against any employee in retaliation for exercising his or her rights under the bill. To the extent required by federal law, authorizes all or any portion of the applicable requirements of the bill to be waived in a bona fide collective bargaining agreement provided that such waiver is explicitly set forth in the agreement in clear and unambiguous terms. As Introduced Assembly Labor & Employment Committee AB 12 (Cooley) State Agency Regulations By January 1, 2020, requires each state agency to do all of the following: (1) review all provisions of the California Code of Regulations adopted by that agency; (2) identify any regulations that are duplicative, overlapping, inconsistent, or out of date; and (3) adopt, amend or repeal regulations to reconcile or eliminate any duplication, overlap, inconsistencies, or out-of-date provisions. By January 1, 2020, requires each state agency, if applicable, to notify a department, board or other unit within that agency of any existing regulation adopted by that department, board or other unit that the agency has determined may be duplicative, overlapping or inconsistent with a regulation adopted by another department, board or other unit within that agency. Requires the department, board or other unit to notify the agency of revisions to regulations that it proposes to make to address any duplication, overlap or inconsistencies. As Introduced Assembly Appropriations Committee Legislative Update Matrix

21 9.a State Assembly Bills Subject Last Amended Status VTA Position AB 17 (Holden) Transit Pass Program Creates the Transit Pass Program to support local programs that provide free or reduced-fare public transit passes to any of the following: (1) pupils attending public middle schools or high schools that are eligible for funding under Title 1 of the federal No Child Left Behind Act of 2001; (2) students attending a California community college who qualify for a waiver of student fees pursuant to the Education Code; or (3) a student who attends a campus of the California State University or the University of California, and who receives an award under the Cal Grant Program, the federal Pell Grant Program, or both. Requires Caltrans to administer this program. Provides that the Transit Pass Program is to be funded from money made available for this purpose through appropriations by the Legislature. Requires Caltrans to develop guidelines describing the criteria that eligible transit providers shall use to make available free or reduced-fare transit passes to eligible participants. Defines eligible transit provider to mean a transportation agency, transportation planning agency or county transportation commission that is eligible to receive State Transit Assistance Program (STA) funding. Defines eligible participants to mean a public agency, including a transit operator, school district, community college district, the California State University, or the University of California. Requires Caltrans to develop performance measures and reporting requirements to evaluate the effectiveness of the Transit Pass Program, including an annual update of the number of free or reduced-fare transit passes distributed to students and whether the program is increasing transit ridership among students. Requires funds allocated to the Transit Pass Program to be expended to provide low- or no-cost transit passes to students through programs that support new or existing transit pass programs. Allows a an eligible transit provider to give priority to an application from an eligible participant with an existing, successful transit pass program, provided that the eligible participant can demonstrate that the additional funds will further reduce the cost of the transit pass or expand program eligibility. Requires each eligible transit provider to receive $20,000 from the Transit Pass Program. After the initial $20,000 amount is allocated, requires the remaining program funds to be distributed according to the STA formula. Requires any funds allocated during a fiscal year, but not distributed, to be added to the allocation for the following fiscal year. As Introduced Assembly Transportation Committee AB 28 (Frazier) Federal Environmental Review Process Reinstates the statutory authorization for Caltrans to participate in a federal program that allows states to assume the responsibilities of the Federal Highway Administration (FHWA) under the National Environmental Policy Act (NEPA). In addition, reinstates provisions that authorize Caltrans to consent to the jurisdiction of the federal courts with regard to the assumption of FHWA s responsibilities under NEPA and that waive the state s Eleventh Amendment protection against NEPA-related lawsuits brought in federal court. Repeals the provisions of the bill on January 1, /2/17 Signed into Law: Chapter #4 Support Legislative Update Matrix

22 9.a State Assembly Bills Subject Last Amended Status VTA Position AB 33 (Quirk) Electric Vehicle Service Equipment By March 30, 2018, requires the California Public Utilities Commission (CPUC) to authorize electrical corporations to offer programs and investments in electric vehicle service equipment installed in residential garages of customers who purchase a used electric vehicle. Requires such programs and investments to be designed to: (1) accelerate widespread transportation electrification; (2) achieve ratepayer benefits; (3) reduce dependence on petroleum; (4) meet air quality standards; and (5) reduce greenhouse gas emissions. Requires the CPUC to approve, or modify and approve, each proposal to offer such programs and investments filed by an electrical corporation within six months of the date of filing of the completed proposal. Specifies that customers of an electrical corporation participating in a resident garage electric vehicle charging program to receive electrical service pursuant to a grid-integrated rate. Defines grid-integrated rate to mean an electrical service rate design that reflects dynamic electrical grid conditions. 3/23/17 Assembly Communications & Conveyance Committee AB 65 (Patterson) High-Speed Rail Bond Debt Service Prohibits money in the Transportation Debt Service Fund from being used to pay debt service for bonds issued pursuant to the Safe, Reliable high-speed Passenger Train Bond Act for the 21 st Century (Proposition 1A). As Introduced Assembly Transportation Committee AB 66 (Patterson) California High-Speed Rail Authority: Reporting Requirements Requires the business plan prepared by the California High-Speed Rail Authority to identify projected financing costs for each segment or combination of segments of the high-speed rail system for which financing is proposed by the authority. In the business plan and in other reports that High-Speed Rail Authority is required to prepare, specifies that the authority shall call out any significant changes in scope for segments of the high-speed rail system identified in the previous version of the report, and provide an explanation of adjustments in cost and schedule attributable to the changes. As Introduced Assembly Transportation Committee AB 77 (Fong) Regulations: Legislative Review Requires the Office of Administrative Law to submit each major regulation to both the Assembly and Senate for review. Provides that a regulation shall not become effective if the Legislature enacts a statute to override it. 2/7/17 Assembly Appropriations Committee AB 87 (Ting) Autonomous Vehicles Requires the Department of Motor Vehicles (DMV) to revoke the registration of an autonomous vehicle that is being operated on public streets or roads in violation of current state law. Authorizes a peace officer to cause the removal and seizure of an autonomous vehicle operating on public streets or roads with a registration that has been revoked by the DMV. Authorizes the DMV to impose a penalty of up to $25,000 per day that an autonomous vehicle is operated on public streets roads in violation of current state law. As Introduced Assembly Transportation Committee Legislative Update Matrix

23 9.a State Assembly Bills Subject Last Amended Status VTA Position AB 91 (Cervantes) HOV Lanes: Riverside County Beginning July 1, 2018, prohibits a high-occupancy vehicle (HOV) lane from being established in Riverside County, unless the lane is established as an HOV lane only during the hours of heavy commuter traffic, as determined by Caltrans. Requires any existing HOV lane in Riverside County that is not a toll lane to be modified to operate as an HOV lane under those same conditions. Specifies that those two provisions of the bill would apply only to the extent that they do not endanger federal funding. On or after May 1, 2019, authorizes Caltrans to reinstate 24-hour HOV lanes in Riverside County if the department determines that there is an adverse impact on safety, traffic conditions or the environment by limiting the use of HOV lanes during hours of heavy commuter traffic. Before reinstating 24-hour HOV lanes in Riverside County, requires Caltrans to notify the Assembly Transportation Committee, and the Senate Transportation & Housing Committee. 3/22/17 Assembly Appropriations Committee AB 92 (Bonta) Public Contracts: Retention Proceeds Extends the sunset date from January 1, 2018, to January 1, 2023, for provisions in current law that authorize the retention proceeds withheld from any payment by a public entity from the original contractor, by the original contractor from any subcontractor, and by a subcontractor from any other subcontractor to exceed 5 percent if: (1) a finding is made prior to contract bid that the project is substantially complex and requires a higher retention; and (2) this finding and the actual retention amount is included in the bid documents. As Introduced Assembly Appropriations Committee AB 151 (Burke) Cap-and-Trade Extension Authorizes the California Air Resources Board (CARB) to utilize a market-based compliance mechanism to reduce greenhouse gas emissions beyond December 31, Requires CARB to report to the appropriate policy and fiscal committees of the Legislature to receive input, guidance and assistance before adopting guidelines and regulations to implement the Scoping Plan for ensuring that statewide greenhouse gas emissions are reduced to at least 40 percent below the 1990 level by By January 1, 2019, requires CARB to report to the Legislature on the need for increased education, career technical education, job training, and workforce development in ensuring that statewide greenhouse gas emissions are reduced to at least 40 percent below the 1990 level by Establishes the Compliance Offsets Protocol Task Force to investigate, analyze and provide guidance to CARB in approving new offset protocols for a market-based compliance mechanism, with a priority on the development of new urban offset protocols. 3/2/17 Assembly Natural Resources Committee AB 161 (Levine) CalPERS: Infrastructure Investments Authorizes the Department of Finance to identify infrastructure projects in the state for which the department will guarantee a rate of return for an investment made in that infrastructure project by the Public Employees Retirement System (CalPERS). Creates the Reinvesting in California Special Fund as a continuously appropriated fund. Requires money in the fund to be used to pay the rate of return on investments made in infrastructure projects. States the intent of the Legislature to identify special fund dollars to be transferred to the Reinvesting in California Special Fund. As Introduced Assembly Appropriations Committee AB 174 (Bigelow) California Transportation Commission: Rural County Representation Requires at least one voting member of the California Transportation Commission (CTC) to reside in a rural county with a population of less than 100,000 people. As Introduced Assembly Transportation Committee Legislative Update Matrix

24 9.a State Assembly Bills Subject Last Amended Status VTA Position AB 179 (Cervantes) California Transportation Commission: Member Qualifications AB 195 (Obernolte) Local Government Ballot Measures Requires seven of the voting members of the California Transportation Commission (CTC) to have the following qualifications: (1) two members shall have worked directly with those communities in the state that are most significantly burdened by, and vulnerable to, high levels of pollution, including those communities with racially and ethnically diverse populations or with low-income populations; (2) one member shall have training and experience in sustainable transportation that includes addressing bicycle and pedestrian safety issues; (3) one member shall have training and experience in sustainable transportation that includes addressing public transit issues; (4) one member shall have training and experience in, or be an authority on, the public health effects of transportation; (5) one member shall have training and experience in, or be an authority on, climate change mitigation, including the role of transportation projects on that mitigation; and (6) one member shall have training and experience in, or be an authority on, climate change mitigation, including the role of transportation projects with regard to such mitigation. Requires the CTC to create an Environmental Justice Advisory Committee to advise the commission in its allocation and programming of transportation funding, and any other pertinent transportation policy matters. Requires this advisory committee to be comprised of at least five members. Requires each member of the advisory committee to represent a community disproportionately burdened by, and vulnerable to, high levels of pollution and other environmental justice issues, including communities with diverse racial and ethnic populations or with low-income populations. Requires the CTC to appoint only individuals nominated by environmental justice organizations and community groups to the advisory committee. Requires the CTC and the California Air Resources Board (CARB) to hold at least two joint meetings per calendar year to coordinate their implementation of transportation policies. If a ballot measure proposed by a local governing body calls for imposing a tax or raising the rate of a current tax, requires the ballot to include in the statement of the measure to be voted on the amount of money to be raised annually, and the rate and duration of the tax to be levied. Requires the statement of the measure to be a true and impartial synopsis of its purpose, and to be in language that is neither argumentative nor likely to create prejudice for or against the measure. 2/14/17 Assembly Transportation Committee 3/14/17 Assembly Floor AB 193 (Cervantes) Clean Reused Vehicle Rebate Project By July 1, 2019, requires the California Air Resources Board (CARB) to establish the Clean Reused Vehicle Rebate Project to provide incentives to low- and moderate-income individuals to purchase used clean air vehicles. Requires the project to provide an applicant with any of the following: (1) a rebate or other incentive with a value of up to $1,800 for the acquisition of an eligible used vehicle from a licensed dealer; (2) a rebate or other incentive for the replacement or refurbishment of a battery and related components for an eligible used vehicle, for an extended warranty for the battery and related components, or for both; or (3) a rebate or other incentive for an extended service warranty to cover unexpected vehicle repairs not covered by the manufacturer s warranty related to unique problems in eligible used vehicles. Limits these rebates and incentives to low- and moderate-income individuals residing in disadvantaged communities. In addition, limits the Clean Reused Vehicle Rebate Project to applicants who reside in one of the following: (1) a county where existing clean vehicle rebate programs have been underutilized; or (2) an air district that has been designated by CARB as being in non-attainment and as not meeting federal ambient air quality standards. As Introduced Assembly Transportation Committee Legislative Update Matrix

25 9.a State Assembly Bills Subject Last Amended Status VTA Position AB 278 (Steinorth) CEQA Exemption for Certain Transportation Projects Exempts from the California Environmental Quality Act (CEQA) a project that consists of the inspection, maintenance, repair, rehabilitation, replacement, or removal of existing transportation infrastructure, including highways, roadways, bridges, tunnels, culverts, public transit systems, bikeways, paths and sidewalks serving bicycles or pedestrians, and the addition of auxiliary lanes or bikeways to existing transportation infrastructure, if the project meets all of the following conditions: (1) the project is located within an existing right-of-way; (2) any area surrounding the right-of-way that is to be altered as a result of construction activities that are necessary for the completion of the project will be restored to its condition before the project; and (3) the project does not add additional motor vehicle lanes, except auxiliary lanes. As Introduced Assembly Natural Resources Committee AB 301 (Rodriguez) Driver s License: Certification of Driving Skill AB 332 (Bocanegra) Local Street Closures Beginning July 1, 2018, requires the Department of Motor Vehicles (DMV) to accept a certificate of driving skill issued by a licensed truck driving school, an accredited public or private postsecondary institution, a union, an independent testing center, or municipality of which a driver s license applicant is a member, student, client, or resident, as appropriate, in lieu of a driving test on Class A or B applications, if the applicant has: (1) first qualified for a Class C license; and (2) met the other examination requirements for the license for which he or she is applying. By January 1, 2023, requires the DMV to submit a report to the Legislature comparing the safety of drivers who have obtained their Class A or B endorsement pursuant to the provisions of this bill to those who have obtain such endorsements by taking a driving test administered by the department. Allows a local authority to temporarily close a highway under its jurisdiction to through traffic in order to curb a serious nuisance, including illegal dumping. Also allows a local authority to temporarily close a highway under its jurisdiction that has been designated as a through highway or arterial street if the closure can be accomplished without a significant impact to the flow of traffic. 3/28/17 Assembly Transportation Committee 3/9/17 Assembly Floor Legislative Update Matrix

26 9.a State Assembly Bills Subject Last Amended Status VTA Position AB 342 (Chiu) Automated Speed Enforcement: San Jose and San Francisco Five-Year Pilot Program Authorizes the city of San Jose and the city/county of San Francisco to implement a five-year pilot program utilizing an automated speed enforcement (ASE) system for speed limit enforcement on streets or portions of streets that: (1) have a speed limit of 50 miles per hour or less; and (2) have had a documented incidence of collisions resulting in fatalities or injuries as evidenced by either a three-year fatality and injury collision rate, or a three-year fatality rate that is higher than the threeyear collision rates published by Caltrans for comparable roadways. Requires the ASE system to be activated no later than January 1, 2019, and to be operated for no longer than five years. Requires the ASE system to meet all of the following: (1) is operated in cooperation with a law enforcement agency; (2) clearly identifies the presence of the fixed or mobile ASE system by signs stating Photo Enforced along with the posted speed limit; (3) identifies vehicles containing a mobile ASE system with distinctive markings; (4) identifies the streets or portions of the streets that have been approved for enforcement using an ASE system and the hours of enforcement on the municipality s Internet Web site; (5) utilizes trained peace officers or other trained designated municipal employees to oversee the operation of the ASE system and maintain control over enforcement activities; (6) ensures that the ASE system is regularly inspected, and certifies that the system is installed and operated properly; and (7) utilizes fixed and mobile systems that provide real-time notification when violations are detected. Prior to enforcing speed limits using an ASE system, requires the city of San Jose and the city/county of San Francisco to do both of the following: (1) administer a public information campaign for at least 30 calendar days prior to the initial commencement of the use of the system; and (2) issue warning notices rather than notices of violation for the first violations detected by the ASE system during the first 90 calendars days of enforcement. If the ASE system is utilized on additional streets after initial implementation, requires the city of San Jose and the city/county of San Francisco to issue warning notices rather than notices of violations during the first 30 calendar days of enforcement for the additional streets. Requires the governing body of the city of San Jose and the city/county of San Francisco to adopt an ASE System Use Policy to include all of the following: (1) specific purposes for the ASE system, the uses that are authorized, the rules and processes required prior to that use, and the uses that are prohibited; (2) the data or information that can be collected by the ASE system, the individuals who can access or use the collected information, and the rules and processes related to the access or use of the information; and (3) provisions for protecting data from unauthorized access, data retention, public access, third-party data sharing, training, auditing, and oversight to ensure compliance with the policy. Requires the governing body of the city of San Jose and the city/county of San Francisco to approve an ASE System Impact Report to include all of the following: (1) description of the ASE system and how it works; (2) proposed purpose of the ASE system; (3) locations where the ASE system may be deployed, and traffic data for those locations; (4) assessment of the potential impact of the ASE system on civil liberties and civil rights, and any plans to safeguard those public rights; (5) a determination of why locations in low-income neighborhoods experience high fatality and injury collisions due to unsafe speed if potential deployment locations of the ASE system are predominantly in such neighborhoods; and (6) fiscal costs associated with the ASE system. Specifies that a speed violation recorded by the ASE system shall be subject only to a civil penalty, the total amount of which cannot exceed $100. 4/6/17 Assembly Privacy & Consumer Protection Committee Support Legislative Update Matrix

27 9.a State Assembly Bills Subject Last Amended Status VTA Position AB 344 (Melendez) Toll Evasion Violations Specifies that a person contesting a notice of a toll evasion violation or a notice of a delinquent toll evasion violation shall not be required to pay the penalty until after it is found that the person committed the violation. As Introduced Senate Rules Committee AB 351 (Melendez) Transportation Funding: Loan Repayments, Vehicle Weight Fees and Non- Article 19 Transportation Revenues Requires loans of revenues to the General Fund from the State Highway Account, the Public Transportation Account (PTA), the Bicycle Transportation Account, the Motor Vehicle Fuel Account, the Highway Users Tax Account (HUTA), the Pedestrian Safety Account, the Transportation Investment Fund, the Traffic Congestion Relief Fund (TCRF), the Motor Vehicle Account, and the Local Airport Loan Account to be repaid by December 31, 2018, to the account or fund from which the loan was made. Specifies that this requirement applies to all loans that otherwise have a repayment date of January 1, 2019, or later. Eliminates the annual transfer of vehicle weight fee revenues from the State Highway Account to the General Fund for payment of debt service for general obligation bonds issued for transportation purposes and, instead, retains these revenues in the State Highway Account. Deletes provisions in current law relating to the reimbursement of the State Highway Account with gasoline excise tax revenues for vehicle weight fee revenues transferred to the General Fund and, instead, allows these gasoline excise tax revenues to be allocated in the following manner: (1) 44 percent to the State Transportation Improvement Program (STIP); (2) 44 to cities and counties for local streets/roads; and (3) 44 percent to the State Highway Operation and Protection Program (SHOPP). Eliminates the annual transfer of so-called Non-Article 19 revenues obtained by Caltrans through the rental or sale of property, the sale of documents, and charges for other miscellaneous services provided to the public to the General Fund, and, instead, retains these revenues in the State Highway Account for transportation purposes. As Introduced Assembly Transportation Committee AB 378 (C. Garcia) Greenhouse Gas Emissions Reductions Authorizes the California Air Resources Board (CARB) to adopt or subsequently revise new regulations that establish a market-based compliance mechanism, applicable from January 1, 2021, to December 31, 2030, to complement direct emissions reduction measures in ensuring that statewide greenhouse gas emissions are reduced to at least 40 percent below the 1990 level by Requires CARB, in ensuring that statewide greenhouse gas emissions are reduced to at least 40 percent below the 1990 level by 2030, to adopt the most effective and equitable mix of emissions reduction measures, and to ensure that such measures collectively and individually support achieving air quality and other environmental and public health goals. As Introduced Assembly Natural Resources Committee AB 382 (Voepel) Off-Highway Vehicle Trust Fund Deletes provisions in current law requiring $833,000 per month to be transferred from the Off- Highway Vehicle Trust Fund to the General Fund and, instead, retains these revenues in the trust fund for off-highway motor vehicle recreation purposes. As Introduced Assembly Appropriations Committee Legislative Update Matrix

28 9.a State Assembly Bills Subject Last Amended Status VTA Position AB 398 (E. Garcia) Greenhouse Gas Reduction Fund: Department of Finance Report Requires the annual report submitted by the Department of Finance to the Legislature regarding the status of projects funded with cap-and-trade auction proceeds from the Greenhouse Gas Reduction Fund to include, at a minimum, all of the following: (1) the greenhouse gas emissions reductions attributable to each project; (2) the environmental and public health benefits, as applicable, attributable to each project; (3) actions and outcomes from those actions taken to assist residents of disadvantaged communities and other target populations with the business, employment and training opportunities offered through activities funded in whole or in part with money from the fund; (4) the geographic location, industry sector and number of employees of the business entities receiving money from the fund; (5) the number of jobs created, including wage levels, by the business entities receiving money from the fund; and (6) the amount of other public or private money leveraged with investments from the fund. Requires state agencies expending cap-and-trade auction proceeds from the Greenhouse Gas Reduction Fund to condition the acceptance of the money on the recipient providing the information necessary to meet the reporting requirements of this bill. Defines targeted populations to mean communities and groups of individuals experiencing high levels of unemployment or poverty. Requires the California Air Resources Board (CARB) to appoint a dedicated ombudsman to respond to requests for data and analyses that are not readily available to the public. Requires CARB to process such requests in a timely manner. Requires CARB and regional air districts to coordinate efforts to share data on the emissions of air pollutants, including greenhouse gases. 3/28/17 Assembly Appropriations Committee AB 408 (Chen) Eminent Domain: Final Offer of Compensation Changes the standards by which courts decide whether to award litigation expenses in eminent domain actions. Provides that if a court finds, on motion of the defendant, that the offer of the plaintiff was lower than 90 percent of the compensation awarded in the proceeding, then the court would be required to include the defendant s litigation expenses in the costs allowed. Provides that if the court finds that the offer of the plaintiff was at least 90 percent and less than 100 percent of the compensation awarded in the proceeding, then the court may include the defendant s litigation expenses in the costs allowed. As Introduced Assembly Judiciary Committee AB 467 (Mullin) Local Transportation Authorities: Expenditure Plans Exempts a local transportation authority from including the entire adopted expenditure plan for a retail transactions and use tax in the voter information handbook if: (1) the authority posts the plan on its Internet Web site; and (2) the sample ballot and voter information handbook sent to voters include information on viewing an electronic version of the plan on the authority s Internet Web site and on obtaining a printed copy of the plan by calling the county election office. Requires the local transportation authority to provide sufficient copies of the plan to the county election office for mailing to each person requesting a printed copy. As Introduced Assembly Elections & Redistricting Committee AB 468 (Santiago) LA Metro: Prohibition Orders Authorizes the Los Angeles County Metropolitan Transportation Authority (LA Metro) to issue a prohibition order to any person cited for committing certain acts on LA Metro vehicles or at LA Metro s transit facilities, under which the person would be prohibited from entering the property, facilities or vehicles of LA Metro for a specified period of time. 3/23/17 Assembly Transportation Committee Legislative Update Matrix

29 9.a State Assembly Bills Subject Last Amended Status VTA Position AB 496 (Fong) Transportation Funding Creates the Traffic Relief and Road Improvement Account to be funded from the following sources: (1) sales and use tax revenues from new and used motor vehicle sales and purchases; (2) insurance tax revenues from automobile and motor vehicle policies; (3) specified diesel sales tax revenues transferred from the State Transit Assistance (STA) Program, if those revenues are backfilled with cap-and-trade auction proceeds from the Greenhouse Gas Reduction Fund; (4) specified vehicle registration fee revenues transferred from the Air Quality Improvement Fund, the Alternative and Renewable Fuel and Vehicle Technology Fund, and the Enhanced Fleet Modernization Subaccount, if those revenues are backfilled with cap-and-trade auction proceeds from the Greenhouse Gas Reduction Fund; and (5) revenues obtained by Caltrans through the rental or sale of property, the sale of documents, and charges for other miscellaneous services provided to the public. Distributes the revenues deposited into the Traffic Relief and Road Improvement Account in the following manner: (1) 40 percent would be allocated to Caltrans for maintenance of the state highway system, and for projects programmed in the State Highway Operation and Protection Program (SHOPP); (2) 40 percent would be provided to cities and counties for their local roadway systems; and (3) 20 percent would be allocated for projects programmed in the State Transportation Improvement Program (STIP) that create measurable reductions in traffic congestion. Requires revenues apportioned to California from the formulabased National Highway Freight Program to be deposited into the Trade Corridors Improvement Fund and allocated by the California Transportation Commission (CTC) according to the original guidelines that the commission adopted for the fund in Requires the repayment of approximately $700 million in outstanding loans owed by the General Fund to various transportation accounts by December 31, Distributes these one-time revenues to cities and counties for their local roadway systems. Eliminates the annual transfer of vehicle weight fee revenues from the State Highway Account to the General Fund for payment of debt service for general obligation bonds issued for transportation purposes and, instead, retains these revenues in the State Highway Account. Deletes provisions in current law relating to the reimbursement of the State Highway Account with gasoline excise tax revenues for vehicle weight fee revenues transferred to the General Fund and, instead, allows these gasoline excise tax revenues to be allocated in the following manner: (1) 44 percent to the STIP; (2) 44 to cities and counties for local streets/roads; and (3) 44 percent to the SHOPP. 2/28/17 Assembly Transportation Committee Legislative Update Matrix

30 9.a State Assembly Bills Subject Last Amended Status VTA Position AB 515 (Frazier) State Highway System Management Plan Requires Caltrans to prepare a State Highway System Management Plan consisting of the existing 10-year rehabilitation plan that forms the basis of the State Highway Operation and Protection Program (SHOPP), and a five-year maintenance plan addressing the maintenance needs of the state highway system. Requires the maintenance plan to include only maintenance activities that, if not performed, could result in increased SHOPP costs in the future. In addition, requires the maintenance plan to identify any existing backlog in those maintenance activities, and to recommend a strategy, specific activities and an associated funding level to reduce or prevent any backlog during the plan s five-year period. Requires the State Highway System Management Plan to do all of the following: (1) include specific milestones, as well as quantifiable accomplishments, goals, objectives, and performance measures consistent with Caltrans Assets Management Plan; (2) contain strategies to control costs and improve the efficiency of the SHOPP; and (3) attempt to balance resources between the SHOPP and maintenance activities in order to achieve identified milestones and goals at the lowest possible long-term total cost. Requires the State Highway Management Plan to be updated every two years. As Introduced Assembly Appropriations Committee AB 536 (Melendez) Counties: Federal Funding If compliance with a state law would result in a county losing federal funding, authorizes the county to elect to not comply with that law to the extent that compliance jeopardizes its federal funding. As Introduced Assembly Judiciary Committee AB 544 (Bloom) HOV Lanes: Low- Emission and Energy Efficient Vehicles Provides that decals, stickers or other identifiers issued by the Department of Motor Vehicles (DMV) prior to January 1, 2017, allowing battery electric, hydrogen fuel cell, compressed natural gas, and plug-in hybrid electric vehicles to use high-occupancy vehicle (HOV) lanes without the required number of occupants in the vehicle are valid until January 1, Provides that decals, stickers or other identifies issued by the DMV to such vehicles on or after January 1, 2017, and before January 1, 2018, are valid until January 1, Provides that decals, stickers or other identifiers issued by the DMV to such vehicles on or after January 1, 2018, and before January 1, 2019, are valid until January 1, Provides that decals, stickers or other identifiers issued by the DMV to such vehicles on or after January 1, 2019, are valid until January 1 of the fourth year after the year of issuance. 3/21/17 Assembly Transportation Committee AB 570 (Gonzalez-Fletcher) Workers Compensation: Permanent Disability Causation In making a determination of apportionment of permanent disability based on causation for purposes of payment of workers compensation, prohibits apportionment, in the case of a physical injury occurring on or after January 1, 2018, from being based on pregnancy, childbirth, or other medical conditions related to pregnancy or childbirth. As Introduced Assembly Insurance Committee Legislative Update Matrix

31 9.a State Assembly Bills Subject Last Amended Status VTA Position AB 623 (Rodriguez) Autonomous Vehicles: Accidents Requires an accident involving the operation of an autonomous vehicle that results in catastrophic bodily injury or the death of a person to be reported to the Department of Motor Vehicles (DMV) within 24 hours of occurrence. Requires the DMV to suspend the testing approval granted to the manufacturer of the autonomous vehicle for five business days following the reporting of the accident. During the five-day suspension period, requires the DMV and other appropriate agencies to review the accident to determine if it was caused by a failure of the autonomous vehicle technology. If it is determined that the accident was caused by a failure of the vehicle technology, authorizes the DMV to revoke the manufacturer s testing approval until the manufacturer provides the DMV and other appropriate agencies with evidence that the safety hazard has been resolved. As Introduced Assembly Transportation Committee AB 636 (Irwin) Local Streets/Roads: Expenditure Reports Requires the report by a city or county regarding Highway Users Tax Account (HUTA) expenditures for street/road purposes during the preceding fiscal year to be submitted to the Controller s Office within seven months of the close of the fiscal year, rather than by the first day of October, as is the case under current law. 3/28/17 Assembly Floor AB 673 (Chu) Public Transit Operators: Vehicle Safety Requirements Before placing a new bus into revenue service, requires a public transit agency to take into consideration the recommendations of, and the best practice standards developed by, the exclusive representative of the recognized organization representing the agency s operators for the purpose of protecting operators from the risk of assaults and removing blind spots. Before placing a new bus into revenue service, requires a public transit agency to ensure that the bus is equipped, at a minimum, with all of the following: (1) transparent, glare-free, accessible partition enclosures around the bus operator seating area capable of withstanding gun fire; (2) a door or window at least the same size as a passenger emergency window to the left of the bus operator seating area that allows for safe and rapid emergency egress from the vehicle; (3) a mechanism that allows for a direct connection to local law enforcement, such as a panic button; (4) low-mounted, reasonably sized, left-side mirrors, as well as reasonably sized A pillars, that allow the bus operator, regardless of size, to adequately view pedestrians crossing in front of the bus; and (5) an overall bus operator seating area that eliminates blind spots to the greatest extent feasible. Specifies that these standards shall be implemented only to the extent that they comply with Federal Motor Vehicle Safety Standards. As Introduced Assembly Transportation Committee AB 694 (Ting) Bicycles Except under specified conditions, requires a person operating a bicycle to ride in the right-hand lane or bicycle lane, if one is present, rather than as close as practicable to the right-hand curb or edge of the roadway, as is the case under current law. Requires a person operating a bicycle in a right-hand lane that is wide enough for a vehicle and a bicycle to travel safety side by side within the lane to ride far enough to the right in order to allow vehicles to pass, except under any of the following situations: (1) when reasonably necessary to avoid conditions that make it hazardous to continue along the right-hand edge of the lane; or (2) when approaching a place where a right turn is authorized. As Introduced Assembly Transportation Committee Legislative Update Matrix

32 9.a State Assembly Bills Subject Last Amended Status VTA Position AB 697 (Fong) Toll Facilities: Privately Owned Emergency Ambulances Exempts a private ambulance from any requirement to pay a toll or other charge on a vehicular crossing, toll highway or high-occupancy toll (HOT) lane, if the following conditions are met: (1) the private ambulance is properly displaying a valid California license plate, and is properly identified or marked as a private ambulance; (2) the private ambulance is being driven while responding to or returning from an urgent or emergency call, engaged in an urgent or emergency response, or engaging in a fire station coverage assignment directly related to an emergency response; and (3) the driver of the private ambulance determines that the use of the toll facility shall likely improve the availability or response and arrival time of the authorized emergency vehicle and its delivery of essential public safety services. As Introduced Assembly Appropriations Committee AB 730 (Quirk) BART: Prohibition Orders Eliminates the January 1, 2018, sunset date and makes permanent provisions in current law that authorize the Bay Area Rapid Transit District (BART) to issue a prohibition order to any person cited for committing certain acts on BART vehicles or at BART s transit facilities, under which the person would be prohibited from entering the property, facilities or vehicles of BART for a specified period of time. As Introduced Assembly Floor AB 733 (Berman) Enhanced Infrastructure Financing Districts: Climate Change Projects Allows an enhanced infrastructure financing district to finance projects that enable communities to adapt to the impacts of climate change, including extreme weather events, sea level rise, flooding, heat waves, wildfires, and drought. 3/23/17 Assembly Floor AB 758 (Eggman) Tri-Valley-San Joaquin Valley Regional Rail Authority Establishes the Tri-Valley-San Joaquin Valley Regional Rail Authority for purposes of planning and delivering a cost-effective and responsive interregional rail connection between the Bay Area Rapid Transit District (BART) and the Altamont Commuter Express (ACE) in the Tri-Valley that meets the goals and objectives of the community. Specifies that the first phase of the connection shall consist of extending BART along I-580 to a new station in the vicinity of the Isabel Avenue Interchange in the city of Livermore. Requires the governing board of the authority to be composed of 14 members, as specified. Requires all of the unencumbered money dedicated to the connection to be transferred to the authority. Requires BART to identify and expeditiously enter into an agreement with the authority to hold in trust for the authority all real and personal property, as well as any other assets accumulated in the planning, environmental review, design, right-of-way acquisition, permitting, and construction of the connection. Requires BART to assume ownership of all physical improvements, as well as operational control, maintenance responsibilities and related financial obligations for the connection upon its completion. Requires the authority to enter into a memorandum of understanding with BART addressing the ability of BART to review any significant changes in the scope of the design or construction of the connection. Requires Caltrans to expedite reviews and requests related to the connection, and to provide responses within 60 days. Requires the authority to be dissolved upon both the completion of the connection and the assumption of operation control by BART. 3/21/17 Assembly Transportation Committee Legislative Update Matrix

33 9.a State Assembly Bills Subject Last Amended Status VTA Position AB 765 (Low) Local Initiative Measures Requires the election for a county, municipal or special district initiative measure that qualifies for the ballot to be the next statewide election or the jurisdiction s next regular election, as applicable, unless the governing body of the county, city or special district calls a special election. As Introduced Assembly Elections & Redistricting Committee AB 863 (Cervantes) Affordable Housing and Sustainable Communities Program In selecting projects for cap-and-trade funding under the Affordable Housing and Sustainable Communities Program, requires the Strategic Growth Council to seek methods for the inclusion of local entrepreneurs in the implementation of the projects, and workforce training and certification of workers hired to work on the projects. As Introduced Assembly Housing & Community Development Committee AB 943 (Santiago) Land-Use Ordinances Provides that a proposed ordinance submitted by a city to the voters that would curb, delay or deter growth or development within that city shall be enacted only if approved by at least two-thirds of the votes cast on the ordinance at the election. As Introduced Assembly Local Government Committee AB 964 (Gomez) California Affordable Clean Vehicle Program Creates the California Affordable Clean Vehicle Program to be administered by the California Pollution Control Financing Authority to assist low-income or high financial risk individuals in purchasing low-emission vehicles. Specifies that the program would cover potential losses of participating lenders on loans issued to low-income and high-risk individuals to buy low-emission vehicles with a purchase price of up to $45,000. Transfers $50 million in cap-and-trade auction proceeds from the Greenhouse Gas Reduction Fund to the program. As Introduced Assembly Transportation Committee AB 965 (Kiley) Caltrans: Civil Liability In an action against Caltrans for injury, specifies that the amount of non-economic damages shall not exceed $250,000 per individual or $500,000 per occurrence. In an action against Caltrans for personal injury, property damage or wrongful death based upon the principles of comparative fault, specifies that the liability of the department for economic damages shall be several only and shall not be joint. Specifies that Caltrans shall be liable only for the amount of economic damages allocated to the department in direct proportion to its percentage of fault, and requires a separate judgment to be rendered against the department for that amount. Requires Caltrans to identify savings achieved through the implementation of the bill on an annual basis. From the identified savings, requires Caltrans to propose an appropriation to be included in the annual Budget Act for expenditure on highway maintenance, operation, rehabilitation, and improvement. As Introduced Assembly Transportation Committee AB 980 (Wood) Caltrans: Broadband As part of each project located in a priority area, as defined, requires Caltrans to install a broadband conduit capable of supporting fiber optic communication cables. As Introduced Assembly Communications & Conveyance Committee AB 1060 (Burke) LA Metro: Enhanced Infrastructure Financing District Authorizes the Los Angeles County Metropolitan Transportation Authority (LA Metro) to establish an enhanced infrastructure financing district. As Introduced Assembly Local Government Committee Legislative Update Matrix

34 9.a State Assembly Bills Subject Last Amended Status VTA Position AB 1103 (Obernolte) Bicyclists: Rules of the Road After slowing to a reasonable speed and yielding the right-of-way to any vehicle or pedestrian, allows a person operating a bicycle approaching a stop sign to cautiously make a turn or proceed through the intersection without stopping, unless safety considerations require otherwise. If necessary for safety, requires the bicyclist to stop before entering the intersection, and allows him or her to proceed after yielding the right-of-way. 4/6/17 Assembly Transportation Committee AB 1113 (Bloom) State Transit Assistance Program Revises and recasts the provisions in current state law governing the State Transit Assistance Program (STA). Clarifies the definition of STA-eligible transit operator for purposes of allocating STA revenue-based funds. Clarifies that only transportation planning agencies, including county transportation commissions, can receive direct allocations of STA population-based and revenuebased funds from the Controller s Office. Requires a transportation planning agency to allocate revenue-based funds only to STA-eligible transit operators within its jurisdiction. Requires the Controller s Office to compute and publish the revenue-based shares that each STA-eligible transit operator in the state shall receive based on an operator s qualifying revenues. Defines qualifying revenues to mean an STA-eligible transit operator s fare revenues, including paratransit fare revenues, and other local funds used by the operator in the delivery of public transit service. Excludes the following from the definition of qualifying revenues : (1) state and federal operating funds; and (2) all funds used for capital expenditures or depreciation. Specifies that an STAeligible transit operator s revenue-based share cannot exceed its total annual operating expenses. Requires the amount of revenue-based funds allocated by the Controller s Office to a transportation planning agency to be based on the ratio that the total qualifying revenues of all STA-eligible transit operators within the jurisdiction of the transportation planning agency bears to the total qualifying revenues of all STA-eligible transit operators in the state. Requires the amount of revenue-based funds allocated by a transportation planning agency to each STA-eligible transit operators within its jurisdiction to be based on the ratio that an operator s qualifying revenues bears to the total qualifying revenues of all STA-eligible transit operators within the transportation planning agency s jurisdiction. Before a public transit operator submits its audited financial statements to the Controller s Office for purposes of receiving STA funding, requires the applicable transportation planning agency to verify that the operator has correctly reported that it is an eligible claimant for STA dollars. 3/28/17 Assembly Transportation Committee Support AB 1141 (Berman) Autonomous Freight Vehicles By September 30, 2018, requires the Department of Motor Vehicles (DMV) to adopt regulations setting forth standards for the testing of autonomous vehicles used to transport freight. In developing these regulations, requires the DMV to consult with Caltrans and the California Highway Patrol (CHP) on related topics, including appropriate routes for autonomous freight vehicles, and compliance with federal and state requirements for commercial drivers. Requires an autonomous freight vehicle to have a person in the driver s seat at all times while being operated. 4/17/17 Assembly Transportation Committee AB 1145 (Quirk) Utility Relocation Costs Unless otherwise prohibited by law or expressly governed by a contract in force as of January 1, 2018, requires the state or a local government to reimburse a utility for the reasonable costs incurred by the utility to relocate its facilities as a result of a construction project financed from any voter-approved bond act of the state or local government, respectively. As Introduced Assembly Local Government Committee Legislative Update Matrix

35 9.a State Assembly Bills Subject Last Amended Status VTA Position AB 1218 (Obernolte) CEQA: Bicycle Transportation Plans and Projects Eliminates the January 1, 2018, sunset date and makes permanent the following two exemptions from the requirements of the California Environmental Quality Act (CEQA): (1) a bicycle transportation plan prepared for an urbanized area for the restriping of streets/highways, bicycle parking and storage, signal timing to improve street/highway intersection operations, and related signage for bicyclists, pedestrians and vehicles; and (2) a project that consists of restriping streets/highways for bicycle lanes in an urbanized area that is consistent with the area s bicycle transportation plan. As Introduced Assembly Natural Resources Committee AB 1233 (Cunningham) Office of the Transportation Inspector General Creates the Office of the Transportation Inspector General to ensure that Caltrans, the California High-Speed Rail Authority and all other state agencies expending state transportation funds are operating efficiently, effectively, and in compliance with federal and state laws. Requires the Office of the Transportation Inspector General to review policies, practices and procedures, and to conduct audits and investigations of activities involving state transportation funds in consultation with affected state agencies. Requires the duties and responsibilities of the Office of the Transportation Inspector General to include all of the following: (1) examining the operating practices of all state agencies expending state transportation funds to identify fraud and waste, opportunities for efficiencies, and opportunities to improve the data used to determine appropriate project resource allocations; (2) identifying best practices in the delivery of transportation projects, and developing policies or recommending proposed legislation to enable state agencies to adopt these practices; (3) providing objective analysis of, and offering solutions to, concerns raised by the public or generated within agencies involving the state s transportation infrastructure and project delivery methods; (4) conducting, supervising and coordinating audits and investigations relating to the programs and operations of all state agencies with state-funded transportation projects; (5) recommending policies promoting economy and efficiency in the administration of programs and operations of all state agencies with state-funded transportation projects; and (6) ensuring that the California State Transportation Agency and the Legislature are fully and currently informed concerning fraud, or other serious abuses or deficiencies relating to the expenditure of funds, or the administration of programs and operations. Requires the Office of the Transportation Inspector General to provide a summary of its findings, investigations and audits at least annually to the Governor and Legislature. Requires this summary to include significant problems discovered by the Office of the Transportation Inspector General, and whether its recommendations relating to its investigations and audits have been implemented by the affected agencies. As Introduced Assembly Transportation Committee Legislative Update Matrix

36 9.a State Assembly Bills Subject Last Amended Status VTA Position AB 1282 (Mullin) Transportation Permitting Task Force By April 1, 2018, requires the California State Transportation Agency (CalSTA), in consultation with the Natural Resources Agency, to establish a Transportation Permitting Task Force consisting of representatives from specified state agencies and departments. Requires the task force to develop a process for early engagement of all parties in the development of transportation projects to reduce permit processing times, to establish reasonable deadlines for permit approvals, and to provide for greater certainty of permit approval requirements. By December 1, 2018, requires CalSTA to prepare and submit to the Legislature a report of findings based on the efforts of the task force. Requires this report to include a detailed analysis of the following: (1) the existing permitting process for transportation projects in California, including a discussion of the points in the process where delays are most likely to occur; (2) the utilization of existing positions in the various state resources agencies currently supported by transportation funds, including an analysis of the benefits of those positions to the state s transportation programs relative to their costs; (3) the early engagement process developed by the task force; (4) resource levels needed to implement the task force s early engagement process; and (5) legislative or regulatory issues, if any, that need to be address to implement the task force s early engagement process. Sunsets the provisions of the bill on December 1, /4/17 Assembly Transportation Committee AB 1301 (Fong) Joint Legislative Committee on Climate Change Policies Requires the Joint Legislative Committee on Climate Change Policies to do all of the following: (1) evaluate the actions that California, other states and foreign nations are taking to reduce greenhouse gas emissions, and quantify those reductions from those jurisdictions over the prior year; (2) evaluate the impact that California s climate policies have had on the price of transportation fuels, electricity and other commodities identified by the joint committee; (3) recommend to the Legislature how to prioritize the allocation of cap-and-trade auction proceeds in the Greenhouse Gas Reduction Fund in order to achieve the greatest reductions of greenhouse gas emissions for each dollar spent; and (4) track changes in the cost effectiveness of clean technologies based on the amount of emissions avoided. Requires the California Air Resources Board (CARB) to annually report to the joint committee the greenhouse gas emissions reduction measures identified in the board s Scoping Plan that are being implemented or considered. 3/22/17 Assembly Natural Resources Committee AB 1324 (Gloria) Metropolitan Planning Organizations: Sales Taxes Allows a metropolitan planning organization (MPO) or regional transportation planning agency (RTPA) that has sales taxing authority under current law to levy, expand, increase, or extend such a tax in a portion of its area of jurisdiction, rather than in its entire area of jurisdiction, provided that the tax is approved by the required percentage of voters in that portion of its area of jurisdiction who vote on the measure. Requires the revenues derived from the tax to be used only within that portion of the MPO s or RTPA s area of jurisdiction. 3/20/17 Assembly Local Government Committee AB 1363 (Baker) Non-Article 19 Transportation Revenues Beginning July 1, 2018, eliminates the annual transfer of so-called Non-Article 19 revenues obtained by Caltrans through the rental or sale of property, the sale of documents, and charges for other miscellaneous services provided to the public to the General Fund, and, instead, retains these revenues in the State Highway Account for transportation purposes. As Introduced Assembly Transportation Committee Legislative Update Matrix

37 9.a State Assembly Bills Subject Last Amended Status VTA Position AB 1383 (Fong) Greenhouse Gas Emissions Regulations Prior to adopting a regulation to reduce greenhouse gas emissions pursuant to the Global Warming Solutions Act, requires the California Air Resources Board (CARB) to do all of the following: (1) work with stakeholders to identify and address technical, market, regulatory, and other challenges and barriers in implementing the regulation; (2) provide a forum for public engagement by holding at least three public meetings in geographically diverse locations throughout the state; (3) make a finding that the regulation is technologically and economically feasible, is cost effective, and includes mechanisms to minimize and mitigate potential leakage to other states and countries; and (4) evaluate existing achievements made by incentive-based programs. Within two years of adopting a regulation pursuant to the Global Warming Solutions Act, requires CARB to both of the following: (1) determine if sufficient progress has been made to overcome any technical, market or regulatory challenges or barriers that were previously identified; and (2) evaluate whether there are any other challenges or barriers that have arisen. Requires CARB to revise the regulation, as needed, based on the findings of this review. As Introduced Assembly Natural Resources Committee AB 1395 (Chu) State Highways: Debris AB 1421 (Dababneh) Railroads: Noise and Vibration AB 1442 (T. Allen) High-Speed Rail: Bond Funding By January 1, 2019, requires Caltrans to develop a uniform financial plan to remediate debris to maintain and preserve the state highway system. Requires the uniform financial plan to include recommendations that allow a municipality to carry out obligations specified in the plan with reimbursement provided by the state. Requires the Department of Public Health to conduct a study to determine the noise and vibration levels associated with all railroad lines in the vicinity of residential areas or schools. Specifies that no further bonds shall be sold for high-speed rail purposes pursuant to the Safe, Reliable High-Speed Passenger Train Bond Act for the 21 st Century (Proposition 1A), except as specifically provided with respect to an existing appropriation for early improvement projects related to the Phase I blended system. Upon appropriation by the Legislature, requires the unspent proceeds received from outstanding bonds issued and sold for high-speed rail purposes prior to the effective date of the provisions of this bill to be redirected to retiring the debt incurred from the issuance and sale of those outstanding bonds. Allows the remaining unissued bonds, as of the effective date of the provisions of this bill, that were authorized for high-speed rail purposes to be issued and sold. Upon appropriation by the Legislature, requires the net proceeds from the sale of these remaining unissued bonds to be made available to fund the construction of water capital projects that are part of the State Water Resources Development System, including the construction of desalination facilities, wastewater treatment and recycling facilities, reservoirs, water conveyance infrastructure, and aquifer recharge. Specifies that the provisions of the bill would become effective only upon approval by the voters at the next statewide election. 3/30/17 Assembly Transportation Committee 3/22/17 Assembly Transportation Committee 3/28/17 Assembly Transportation Committee Legislative Update Matrix

38 9.a State Assembly Bills Subject Last Amended Status VTA Position AB 1444 (Baker) LAVTA: Autonomous Vehicles Demonstration Project Authorizes the Livermore Amador Valley Transit Authority (LAVTA) to conduct a shared autonomous vehicle demonstration project for the testing of autonomous vehicles that do not have a driver seated in the driver s seat, and that are not equipped with a steering wheel, a brake pedal or an accelerator, provided that the following requirements are met: (1) the testing is conducted only within the city of Dublin; (2) the vehicles may traverse public roads within the area of the demonstration project; and (3) the vehicles operate at speeds of less than 35 miles per hour. Prior to the start of testing of any autonomous vehicles pursuant to this bill, requires LAVTA, or a private entity, or a combination of the two to do both of the following: (1) obtain an instrument of insurance, surety bond or proof of self-insurance in an amount of $5 million; and (2) submit a detailed description of the testing program to the Department of Motor Vehicles (DMV). Requires the operator of the autonomous vehicle technology being tested to disclose to an individual participating in the demonstration project what personal information, if any, concerning the individual will be collected by the autonomous vehicle. For the testing of autonomous vehicles within the designated area of the city of Dublin, allows the DMV to require data collection for evaluating the safety of the vehicles. Specifies that the bill does not limit the authority of the DMV to promulgate regulations governing the testing and operation of autonomous vehicles on public roads, with or without the presence of a driver inside the vehicle. Requires LAVTA to comply with any regulations regarding the testing of autonomous vehicles promulgated by the DMV. Specifies that the provisions of the bill become inoperative on May 1, /5/17 Assembly Transportation Committee AB 1452 (Muratsuchi) Parking for Electric Vehicle Charging Authorizes a local jurisdiction, by ordinance or resolution, to dedicate on-street parking spaces for the exclusive use of electric vehicles while they are charging, provided that appropriate signage is installed. As Introduced Assembly Appropriations Committee AB 1454 (Bloom) Public-Private Partnerships Re-enacts and makes permanent the statutory authority for Caltrans and regional transportation agencies, as defined, to utilize public-private partnerships for transportation infrastructure projects. 3/21/17 Assembly Transportation Committee AB 1470 (Wood) State Highway Bypasses With respect to a project completed on or after January 1, 2014, that consists of relocating a state highway in order to bypass a city or business district, provides that the affected city or county shall be eligible to receive funding from an unspecified account for purposes of revitalizing the city or business district due to the loss of tourism resulting from the project. As Introduced Assembly Transportation Committee AB 1489 (Brough) Architects Practice Act Provides that a licensed architect is not responsible for damage caused by construction deviating from a permitted set of plans, specifications, reports, or documents. As Introduced Assembly Business & Professions Committee Legislative Update Matrix

39 9.a State Assembly Bills Subject Last Amended Status VTA Position AB 1509 (Baker) BART: Rapid Transit Facilities AB 1523 (Obernolte) Design-Build Contracting AB 1561 (Quirk-Silva) Port Infrastructure AB 1579 (Daly) CEQA: Vehicle Miles Traveled Database Requires the Bay Area Rapid Transit District (BART) to maintain its existing commitment of funds for the acquisition, construction or completion of rapid transit facilities. Following the approval of Measure RR at the November 8, 2016, election, prohibits BART from redirecting any existing funds dedicated for system infrastructure capital improvements or rolling stock to cover operating expenses. In any fiscal year in which BART spends Measure RR revenues, requires BART to expend from other revenue sources an amount not less than the annual average of its expenditures on acquisition, construction or completion of rapid transit facilities during FY 2014, FY 2015 and FY Authorizes the Controller s Office to perform audits to ensure BART s compliance with the provisions of this bill. Authorizes a city or county to use design-build contracting for a local street/road project. Authorizes a transit district, county transportation commission, or any other local or regional agency responsible for the construction of public transit or transportation projects to use designbuild contracting for either a public transit capital project or a local street/road project. Allows two or more local agencies to establish an authority under the state s joint powers law for the purpose of financing port infrastructure. For purposes of implementing the California Environmental Quality Act (CEQA), requires the Office of Planning & Research to establish and maintain a vehicle miles traveled database containing methodological guidance on which models should be used for particular types of projects and the best sources of trip-length data for various land-use types. 4/6/17 Assembly Local Government Committee 3/28/17 Assembly Local Government Committee 3/20/17 Assembly Local Government Committee 4/3/17 Assembly Natural Resources Committee AB 1613 (Mullin) Retail Transactions and Use Tax: SamTrans Authorizes the San Mateo County Transit District (SamTrans) to impose a retail transactions and use tax that would exceed the 2 percent maximum combined rate for all local option transactions and use taxes that could be imposed in San Mateo County if both of the following requirements are met: (1) the tax is set at a rate of no more than 0.5 percent; and (2) the SamTrans Board of Directors adopts the ordinance approving the tax before January 1, As Introduced Assembly Local Government Committee AB 1628 (Grayson) Public Works Projects: Independent Contractors Declares the intent of the Legislature to enact a bill to prohibit the use of independent contractors on public works projects. As Introduced Assembly Desk Legislative Update Matrix

40 9.a State Assembly Bills Subject Last Amended Status VTA Position AB 1630 (Bloom) Wildlife Movement Adds the safe wildlife movement across transportation infrastructure to reduce vehicle collisions that injure people, disrupt freight delivery and increase the cost of insurance to the list of subject areas that the California Transportation Plan is required to consider. Requires Caltrans to prepare a report describing the status of the department s progress in locating, assessing and remediating existing barriers to wildlife connectivity. Requires this report to be submitted to the Legislature by October 31 every three years through Authorizes the Department of Fish & Wildlife to pursue the development of a programmatic environmental review process with appropriate state and federal regulatory agencies for remediating barriers to wildlife connectivity that will streamline the permitting process for wildlife crossing projects based on additional funding. For any project using state or federal transportation funds programmed after January 1, 2019, requires Caltrans to ensure that an assessment of existing or proposed barriers to wildlife passage and potential improvements in wildlife connectivity will be completed as part of the project s design, if the project: (1) affects a wildlife corridor identified in the California Essential Habitat Connectivity Project; or (2) is otherwise identified by the Department of Fish & Wildlife or Caltrans as a wildlife corridor. If any structural barrier to wildlife passage exists or is proposed, requires Caltrans to include wildlife passage features to mitigate such barriers and improve wildlife connectivity, using the best available science to determine the placement and design of such features. By January 1, 2019, requires Caltrans and the California Highway Patrol (CHP), in coordination with the Department of Fish & Wildlife, to standardize the collection of data on vehicle collisions with wildlife. By January 1, 2019, requires the Department of Fish & Wildlife to update the California Essential Habitat Connectivity Project with new, best available data on wildlife movements. By January 1, 2019, requires the Department of Fish & Wildlife to create a formal avenue for scientific data on wildlife movements gathered by universities, non-profit corporations, public agencies, and independent biologists to be submitted to the Department of Fish & Wildlife, Caltrans and the California State Transportation Agency. 3/28/17 Assembly Transportation Committee Legislative Update Matrix

41 9.a State Assembly Bills Subject Last Amended Status VTA Position AB 1640 (E. Garcia) Regional Transportation Improvement Programs Beginning January 1, 2020, requires a regional transportation improvement program (RTIP) to allocate a minimum of 25 percent of available State Transportation Improvement Program (STIP) funds to projects or programs that provide direct, meaningful and assured benefits to: (1) lowincome individuals who live in certain identified communities; or (2) riders of public transit service, of which at least 65 percent of its ridership is composed of low-income riders, that connects low-income residents to critical amenities and services. Through an inclusive and transparent public process, and in consultation with the California Air Resources Board (CARB), the Strategic Growth Council and the Department of Public Health, requires Caltrans to adopt guidelines for the allocation of RTIP funds pursuant to the provisions of this bill no later than June 30, Requires these guidelines to do all of the following: (1) define and map urban and rural low-income communities in California that are disadvantaged with respect to transportation; (2) identify communities that would benefit from the allocation requirements of the bill; and (3) specify criteria for determining whether investments in transportation projects and programs benefit low-income residents of the communities identified by the department. In identifying communities, requires Caltrans to use the following factors: (1) inadequate access to high quality public transit; (2) lack of sidewalks, crossing facilities or bicycle infrastructure; (3) low rates of automobile ownership; (4) proximity to a freeway, major arterial or goods movement corridor; (5) lack of shelters, benches or pedestrian lighting at public transit stops, employment centers, schools, medical facilities, grocery stores, and other community services; (6) risk of physical or economic displacement; and (7) health and air pollution impacts of the transportation system. Requires congestion management agencies (CMAs) and regional transportation planning agencies (RTPAs) to report to Caltrans information regarding the transportation project and program benefits provided to disadvantaged community residents. Upon appropriation by the Legislature, requires Caltrans to provide financial support to low-income residents of disadvantaged communities for all of the following purposes: (1) to assist those residents in engaging in the development of the guidelines for the allocation of RTIP funds; (2) to provide those residents with planning support and other technical assistance in identifying their priorities for local projects and programs that meet their needs by reducing their disadvantage with respect to transportation; and (3) to provide those residents with support in developing and implementing a participatory budget process. As Introduced Assembly Transportation Committee Legislative Update Matrix

42 9.a State Assembly Bills Subject Last Amended Status VTA Position ACA 4 (Aguiar-Curry) Local Government Financing: Voter Approval Calls for placing before the voters an amendment to the California Constitution to allow a city or county to incur indebtedness in the form of general obligation bonds, if approved by its electorate by a 55 percent majority, to fund the construction, reconstruction, rehabilitation, or replacement of public infrastructure or affordable housing, or the acquisition or lease of real property for those purposes. Creates an exception to the 1 percent limit for property tax assessments if the revenues are being used to pay bonded indebtedness, approved by a 55 percent majority vote, to fund the construction, reconstruction, rehabilitation, or replacement of public infrastructure or affordable housing, or the acquisition or lease of real property for those purposes. Allows a local government to impose, extend or increase a special tax, if approved by its electorate by a 55 percent majority, to fund the construction, reconstruction, rehabilitation, or replacement of public infrastructure or affordable housing, or the acquisition or lease of real property for those purposes. Defines public infrastructure to include projects that provide any of the following: (1) water or protect water quality; (2) sanitary sewer; (3) treatment of wastewater or reduction of pollution from stormwater runoff; (4) protection of property from the impacts of sea level rise; (5) parks; (6) open space and recreation facilities; (7) improvements to public transit, and streets/highways; (8) flood control; (9) broadband expansion in underserved areas; or (10) local hospital construction. As Introduced Assembly Desk ACA 5 (Frazier) Motor Vehicle Fees and Taxes: Restrictions on Expenditures Calls for placing before the voters an amendment to the California Constitution to exempt appropriations of revenues from the Road Maintenance and Rehabilitation Account that is proposed to be created pursuant to SB 1 (Beall) from counting toward the state appropriation limit (Gann Limit). Requires all revenues derived from the state sales tax on diesel fuel to be deposited into the Public Transportation Account (PTA) and used exclusively for mass transportation purposes. Prohibits the Legislature from taking any action that would temporarily or permanently divert or appropriate these PTA revenues for non-mass transportation purposes; or that would delay, defer, suspend, or otherwise interrupt the quarterly deposit of these revenues into the PTA. Requires the revenues derived from the new transportation improvement fee that would be imposed by SB 1 to be used solely for transportation purposes. Prohibits transportation improvement fee revenues from being used to pay the principal or interest on state transportation general obligation bonds that were authorized by the voters prior to November 8, Prohibits the use of these revenues to pay the principal or interest on any state transportation general obligation bond acts approved by the voters after November 8, 2016, unless the bond act expressly authorizes that use. Prohibits the Legislature from borrowing or using transportation improvement fee revenues for purposes other than those authorized in SB 1. 4/4/17 Passed by the Legislature. To be placed on the June 2018 ballot ACA 9 (Obernolte) Budget Trailer Bills Calls for placing before the voters an amendment to the California Constitution to require the annual Budget Act to be passed by the Legislature and enacted as a statute by midnight of June 15 of each year. Requires bills that provide for appropriations relating to, or that are necessary to implement, the Budget Act to be passed by the Legislature and enacted as statutes by midnight on June 30 of each year. If the Budget Act or a budget trailer bill is not enacted by the applicable deadline, prohibits the Budget Act or trailer bill from taking effect with a majority vote, thereby requiring it to be passed by a two-thirds vote of the Legislature. If the Budget Act is not enacted by the applicable deadline, prohibits an appropriation for the salary and benefits of members of the Legislature and the Governor from midnight on June 15 until the Budget Act is enacted. As Introduced Assembly Desk Legislative Update Matrix

43 BState Senate Bills State Senate Bills Subject Last Amended SB 1 (Beall) Transportation Funding Creates the Road Maintenance and Rehabilitation Account to be funded from the following sources: (1) an increase in the gasoline excise tax of 12 cents per gallon, which would be indexed to inflation every year; (2) 50 percent of the revenues derived from an increase in the diesel excise tax of 20 cents per gallon, which would be indexed to inflation annually; (3) a portion of the revenues derived from a new transportation improvement fee that would be assessed per year based on a vehicle s market value and indexed to inflation on an annual basis; and (4) a registration surcharge of $100 per year imposed on zero-emission vehicles model year 2020 or later starting with the second year of ownership, which would be indexed to inflation every year. Distributes the revenues deposited into the Road Maintenance and Rehabilitation Account in the following manner: (1) $200 million per year would be allocated to local jurisdictions that have sought and gained voter approval of a local transportation special tax, or that have imposed uniform developer or other fees solely for transportation improvements; (2) $100 million per year would be distributed to the Active Transportation Program; (3) $400 million per year would be allocated to Caltrans for maintenance and rehabilitation of bridges and culverts on the state highway system; (4) $25 million per year would be distributed to support Freeway Service Patrols throughout the state; (5) for FY 2018 through FY 2022, $5 million per year would be allocated to the California Workforce Development Board to assist local agencies in implementing policies to promote pre-apprenticeship training programs; (6) $25 million per year would be allocated to Caltrans for local and regional planning grants; (7) $5 million and $2 million per year would be distributed to the University of California and the California State University systems, respectively, to conduct transportation research, as well as to fund transportation-related workforce education, training and development activities; (8) 50 percent of the amount remaining would be allocated to Caltrans for maintenance of the state highway system, and for projects programmed in the State Highway Operation and Protection Program (SHOPP); and (9) 50 percent of the amount remaining would be provided to cities and counties for their local roadway systems. Provides new funding for public transit through the following sources: (1) an increase in the diesel sales tax by a rate of 3.5 percent for the State Transit Assistance Program (STA); (2) an increase in the diesel sales tax by a rate of 0.5 percent for commuter and intercity rail; and (3) $350 million per year (adjusted annually for inflation) from the revenues generated by the new transportation improvement fee to be split 70 percent to the Transit and Intercity Rail Capital Program ($245 million), and 30 percent to STA ($105 million) for public transit state-of-good-repair capital expenditures. Allocates half of the revenues derived from the 20-cent increase in the diesel excise tax to a new Trade Corridor Enhancement Fund for corridor-based freight projects nominated by local agencies and the state. Creates a new competitive Solutions for Congested Corridors Program to fund projects related to implementing a balanced set of transportation, environmental and community access improvements along highly congested travel corridors pursuant to a corridor plan. Provides $250 million per year from the revenues derived from the new transportation improvement fee for this program. Status VTA Position 4/3/17 Governor s Office Support 9.a Legislative Update Matrix

44 9.a State Senate Bills Subject Last Amended SB 2 (Atkins) Building Homes and Jobs Act Enacts the Building Homes and Jobs Act. Beginning January 1, 2018, imposes a fee of $75 to be paid at the time of recording of every real estate instrument, paper or notice required or permitted by law to be recorded per each single transaction per single parcel of real property. Specifies that this fee shall not exceed $225. Prohibits the fee from being imposed on any real estate instrument, paper or notice recorded in connection with a transfer of real property that is a residential dwelling to an owneroccupier. Deposits the revenues derived from the fee in the Building Homes and Jobs Trust Fund for expenditure by the Department of Housing & Community Development. Requires the money in the Trust fund to be appropriated through the annual Budget Act. Upon appropriation by the Legislature, requires 20 percent of the revenues in the trust fund to be expended for affordable owner-occupied workforce housing, and 10 percent to address affordable homeownership and rental housing opportunities for agricultural workers and their families. Requires the remainder of the money in the trust fund to be expended for the following purposes: (1) the development, acquisition, rehabilitation, and preservation of rental housing that is affordable to extremely low-income, very low-income, lowincome, and moderate-income households; (2) affordable rental and ownership housing that meets the needs of a growing workforce up to 120 percent of area median income; (3) matching portions of funds placed into local or regional housing trust funds; (4) matching portions of funds available through the Low and Moderate Income Housing Asset Fund; (5) capitalized reserves for services connected to the creation of new permanent supportive housing, including developments funded through the Veterans Housing and Homelessness Prevention Bond Act of 2014; (6) emergency shelters, transitional housing and rapid rehousing; (7) accessibility modifications; (8) efforts to acquire and rehabilitate foreclosed or vacant homes; (9) homeownership opportunities, including downpayment assistance; (10) grants to local and regional agencies to assist in the development and updating of planning documents and zoning ordinances in order to accelerate housing production; and (11) fiscal incentives as matching funds to local agencies that approve new housing for extremely low-income, very low-income, lowincome, and moderate-income households. At the time of the Department of Finance s adjustments to the proposed FY 2019 budget, requires the Department of Housing & Community Development to submit to the Legislature an initial Building Homes and Jobs Investment Strategy. Beginning with FY 2024, and every five years thereafter, requires the department to update this investment strategy and submit it to the Legislature concurrent with the release of the Governor s proposed budget. Requires the investment strategy to do all of the following: (1) identify the statewide needs, goals, objectives, and outcomes for housing for a five-year period; (2) provide for a geographically balanced distribution of funds, including a 50 percent direct allocation to local governments; (3) emphasize investments that serve households that are at or below 60 percent of area median income; (4) encourage economic development and job creation by helping to meet the housing needs of a growing workforce up to 120 percent of area median income; (5) identify opportunities for coordination among state departments and agencies; (6) incentivize the use and coordination of non-traditional funding sources; and (7) incentivize innovative approaches that produce cost savings to local and state services by reducing the instability of housing for frequent, high-cost users of hospitals, jails, detoxification facilities, psychiatric hospitals, and emergency shelters. Requires expenditure requests in the Governor s proposed budget to be consistent with the Building Housing and Jobs Investment Strategy. Status 3/23/17 Senate Appropriations Committee VTA Position Legislative Update Matrix

45 9.a State Senate Bills Subject Last Amended SB 3 (Beall) Affordable Housing Bond Act of 2018 Calls for submitting the Affordable Housing Bond Act of 2018 to the voters at the November 6, 2018, statewide general election, which authorizes the issuance of $3 billion in general obligation bonds to fund various programs related to housing. If approved by the voters, requires the proceeds from the issuance of the bonds to be allocated in the following manner: (1) $1.5 billion to construct, rehabilitate and preserve permanent and transitional rental housing for persons with incomes of up to 60 percent of the area median income; (2) $200 million to provide assistance to cities, counties, public transit agencies, and developers for the purpose of developing or facilitating higher density uses within close proximity to transit stations that will increase public transit ridership; (3) $300 million for infill incentive grants to assist in constructing and rehabilitating infrastructure that supports high-density affordable and mixed-income housing in locations designated as infill; (4) $100 million for grants to qualifying cities and counties to be used for downpayment assistance to qualifying first-time homebuyers, or low-income and moderate-income buyers purchasing newly constructed homes in a Building Equity and Growth in Neighborhoods (BEGIN) project; (5) $300 million for grants or loans for local public entities, non-profit corporations, limited liability companies, and limited partnerships for constructing or rehabilitating housing for agricultural employees and their families, or for acquiring manufactured housing as part of a program to address and remedy the impacts of current and potential displacement of farmworker families from existing labor camps, mobilehome parks or other housing; (6) $300 million for competitive grants or loans to local housing trust funds that develop, own, lend, or invest in affordable housing to assist in creating pilot programs to demonstrate innovative, cost-saving approaches to building or preserving affordable housing; and (7) $300 million for the CalHome Program to provide direct, forgivable loans to assist development projects involving multiple homeownership units. Status 3/28/17 Senate Appropriations Committee VTA Position Legislative Update Matrix

46 State Senate Bills Subject Last Amended SB 4 (Mendoza) Goods Movement Subject to voter approval at the June 5, 2018, statewide primary election, enacts the Goods Movement and Clean Trucks Bond Act to authorize the issuance of $600 million in state general obligation bonds for the following purposes: (1) $200 million to the California Transportation Commission (CTC) for projects and programs eligible for funding from the Trade Corridors Improvement Fund (TCIF); (2) $200 million to the California Air Resources Board (CARB) for projects and programs consistent with the Goods Movement Emission Reduction Program; and (3) $200 million to CARB for projects and programs to expand the use of zero- and near-zero emission trucks in areas of the state that are designated as severe or extreme nonattainment areas for ozone and particulate matter. Requires revenues apportioned to California from the National Highway Freight Program established by the federal Fixing America s Surface Transportation (FAST) Act to be deposited into the TCIF and allocated by the CTC for projects pursuant to the statutes governing the TCIF. In prioritizing projects for TCIF funding, requires the CTC to consult the California Sustainable Freight Action Plan released in July 2016 pursuant to a gubernatorial executive order. Requires projects eligible for TCIF funding to further the state s economic, environmental and public health objectives and goals for freight policy. In evaluating the program of projects to be funded from the TCIF, requires the CTC to evaluate the total potential economic and non-economic benefits of the program of projects to California s economy, environment and public health. Requires the CTC to allocate the revenues apportioned to California from the formula-based National Highway Freight Program in the following manner: (1) $150 million dedicated exclusively to fund improvements to California s existing or planned land ports of entry on the border with Mexico; (2) $70 million dedicated exclusively to fund projects for the elimination, alteration or improvement of hazardous railroad-highway grade crossings; and (3) $360 million for projects nominated by regional transportation agencies and other public entities, in consultation with Caltrans, consistent with the corridor-based programming targets contained in the TCIF Guidelines. Requires the CTC to proportionately adjust these amounts if the funding received by California from the National Highway Freight Program is less than or greater than $580 million. Requires the CTC to amend the current TCIF Guidelines to allocate funding in a manner that: (1) addresses the state s most urgent needs; (2) balances the demands of various land ports of entry, seaports and airports; (3) provides reasonable geographic balance between the state s regions; (4) places an emphasis on projects that improve trade corridor mobility and safety, while reducing emissions of diesel particulates, greenhouse gases and other pollutants, and reducing other negative community impacts; and (5) makes a significant contribution to the state s economy. In adopting amended guidelines, and in developing and adopting the program of projects for TCIF funding, requires the CTC to do all of the following: (1) accept nominations for projects to be included in the program of projects from regional and local transportation agencies, and from Caltrans; (2) recognize the key role of the state in project identification and support integrating statewide goods movement priorities into the corridor approach; and (3) give the highest priority for funding allocations to projects jointly nominated by Caltrans and a regional or other public agency. As Introduced Status Senate Governance & Finance Committee 9.a VTA Position Legislative Update Matrix

47 9.a State Senate Bills Subject Last Amended SB 19 (Hill) California Public Utilities Commission: Duties, Responsibilities and Governance SB 20 (Hill) Buses: Seatbelts Among other things, makes legislative findings and declarations relative to the administration working with the California Public Utilities Commission (CPUC) to develop a reorganization plan to transfer those duties and responsibilities of the commission over transportation-related entities that would be better performed by departments within the California State Transportation Agency (CalSTA). By February 1 of each year, requires CalSTA to report to the Governor and the relevant committees of the Legislature statistical information regarding application, permit and enforcement activities undertaken by the agency in carrying out the duties and responsibilities transferred to the agency from the CPUC. Requires a passenger in a bus equipped with seatbelts to be properly restrained by a belt, except in the case where the passenger is out of his or her seat to use an onboard bathroom. Specifies that a violation of this seatbelt requirement is an infraction punishable by a fine of not more than $20 for the first offense, and a fine of not more than $50 for each subsequent offense. Requires a motor carrier operating a bus equipped with seatbelts to maintain the belts in good working order for the use of passengers of the vehicle. Requires a motor carrier operating a bus equipped with seatbelts to do one of the following: (1) require the bus driver, before departure, to inform passengers of the requirement to wear the belt under California law and that not wearing the belt is punishable by a fine; or (2) post signs or placards informing passengers of the requirement. Specifies that the aforementioned provisions of the bill do not apply to school buses. If a bus is equipped with a driver seatbelt, prohibits the driver from operating the bus unless he or she is properly restrained by the belt. Specifies that a violation of this requirement is an infraction punishable by a fine of not more than $20 for the first offense, and a fine of not more than $50 for each subsequent offense. Requires the motor carrier operating a bus with a driver seatbelt to maintain the belt in good working order for the use of the driver. Requires a charter bus company to ensure that a driver of a vehicle designed to carry 39 or more passengers does both of the following: (1) instructs or plays a video for all passenger regarding the safety equipment and emergency exists on the vehicle prior to the beginning of any trip; and (2) provides each passenger with written or video instructions that include, at a minimum, a demonstration of the location and operation of all exits, the requirement to wear a seatbelt, if available, and that not wearing the belt is punishable by a fine. Status 3/14/17 Senate Appropriations Committee 4/6/17 Senate Appropriations Committee VTA Position Legislative Update Matrix

48 9.a State Senate Bills Subject Last Amended SB 21 (Hill) Surveillance Technologies By July 1, 2018, requires a public agency to submit to its governing body for adoption by resolution or ordinance on the regular, non-consent calendar a Surveillance Use Policy pertaining to any surveillance technologies already in use by that agency. Requires the policy to include, in separate sections specific to each unique type of surveillance technology, a description of each surveillance technology used by the public agency Requires each section covering a separate technology to include, at a minimum, all of the following: (1) authorized purposes for using the surveillance technology; (2) types of data that can be and is collected by the surveillance technology; (3) a description of the job title or other designation of employees and independent contractors who are authorized to use the surveillance technology or to access the data collected; (4) the title of the official custodian or owner of the surveillance technology; (5) a description of how the surveillance technology will be monitored to ensure the security of the information and compliance with any applicable privacy laws; (6) the length of time information collected by the surveillance technology will be retained, and a process to determine if and when to destroy the retained information; (7) purposes of, processes for and restrictions on the sale, sharing or transfer of information to other persons; and (8) how collected information can be accessed by members of the public, including criminal defendants. After July 1, 2018, specifies that if a public agency intends to acquire a new type of surveillance technology after the adoption of the Surveillance Use Policy, requires the agency to submit an amendment to the policy to include the technology as a new section of the policy to its governing body for approval. At a time interval agreed to by the public agency and its governing body, requires an agency that uses surveillance technologies and has an approved Surveillance Use Policy to submit to its governing body a written Surveillance Technology Use Report. Requires the report to include, at a minimum, all of the following: (1) the total costs for each surveillance technology, including personnel costs; (2) a description of how many times each type of technology was used in the preceding year, and how many times it helped apprehend suspects or close a criminal case; (3) a description of the type of data collected by each surveillance technology, including whether each technology captured images, sound or other data; (4) the number of times and the purposes surveillance technology was borrowed from or lent to another agency, including technologies used under exigent circumstances; (5) the number and classification of the agency employees trained and authorized to use each type of surveillance technology, along with a description of the training provided and how often it was provided; and (6) disclosure of whether any surveillance technology was used in a manner out of compliance with the agency s Surveillance Use Policy; whether data collected through the use of the technology was inappropriately disclosed, released or in any other way revealed for a non-approved reason; and the steps the agency took to correct the error. Status 3/23/17 Senate Judiciary Committee VTA Position Legislative Update Matrix

49 9.a State Senate Bills Subject Last Amended SB 32 (Moorlach) Public Employees Pension Reform SB 49 (de Leon) California Environmental, Public Health and Workers Defense Act of 2017 Creates the Citizens Pension Oversight Committee to serve in an advisory role to the Teachers Retirement Board and the Board of Administration of the California Public Employees Retirement System (CalPERS). Requires the oversight committee to annually review the actual pension costs and obligations of CalPERS and the State Teachers Retirement System (STRS), and to report them to the public. Prohibits a public retirement board from deeming incentive pay, educational pay, premium pay, special assignment pay, or holiday pay to be pensionable compensation. Requires the Board of Administration of CalPERS to reduce the unfunded liability of CalPERS to the 1980 level to be achieved by 2030, with the goal of fully funding the system. In any year in which the unfunded actuarial liability of CalPERS is greater than zero, requires the Board of Administration to increase the employer contribution rate otherwise provided by law for the state, contracting agencies and school employers by 10 percent. By January 1, 2019, requires the Board of Administration of CalPERS to develop and submit to the Legislature for approval a hybrid retirement plan consisting of the following: (1) a defined benefit component that utilizes low-risk investments; and (2) a defined contribution component under which an employee s contributions will be matched by employer contributions up to a certain percent. Requires a member who is first employed by the state, a contracting agency or a school employer, and becomes a member of CalPERS on or after the approval of the hybrid plan by the Legislature to participate in the hybrid plan. For an individual who becomes a member of any public retirement system for the first time on or after January 1, 2018, and who was not a member of any other public retirement system prior to that date, requires the final compensation used to determine the member s retirement benefits to be the highest annual pensionable compensation earned by the member during a period of at least 60 consecutive months, or at least five consecutive school years if applicable. Prohibits a public retirement system from making a cost-of-living adjustment to any retirement benefit to, or on behalf of, a person retired under the system, or to any survivor or beneficiary of a member or person retired under the system for any year, beginning on or after January 1, 2018, in which CalPERS or STRS is not fully funded. Prohibits a state or local agency from amending or revising its rules and regulations to be less stringent than the baseline federal standards for the following federal laws: (1) Clean Air Act; (2) Endangered Species Act; (3) Safe Drinking Water Act; (4) Water Pollution Control Act; and (5) any other federal law relating to environmental protection, natural resources or public health. Defines baseline federal standards to mean the authorizations, policies, objectives, rules, requirements, and standards contained in the aforementioned federal laws, or regulations implementing those laws in existence as of January 1, 2016, or January 1, 2017, whichever is more stringent. Prohibits a state agency from amending or revising its rules and regulations in a manner that is less stringent in its protection of workers rights or worker safety than standards in existence as of January 1, 2016, established pursuant to the following federal laws: (1) Fair Labor Standards Act; (2) Occupational Safety and Health Act; (3) Mine Safety and Health Act; and (4) any other federal statutes relating to worker rights and protections. Status 3/2/17 Senate Public Employment & Retirement Committee 2/22/17 Senate Judiciary Committee VTA Position Legislative Update Matrix

50 9.a State Senate Bills Subject Last Amended SB 50 (B. Allen) Federal Public Lands: Conveyances SB 51 (Jackson) Professional Licenses: Environmental Sciences and Climate Change SB 80 (Wieckowski) CEQA: Notices SB 132 (Budget Committee) 2016 Budget Act SB 145 (Hill) Autonomous Vehicles Establishes a state policy to discourage conveyances that transfer ownership of federal public lands in California from the federal government. Specifies that such conveyances are void unless the State Lands Commission was provided with the right of first refusal to the conveyance, or the right to arrange for the transfer of property to another entity. Authorizes the commission to seek declaratory and injunctive relief from a court of competent jurisdiction to contest conveyances made to any entity unless the requirements of this bill are met. Requires the commission, the Wildlife Conservation Board and the Department of Fish & Wildlife to enter into a memorandum of understanding that establishes a state policy that all three agencies would undertake all feasible efforts to protect against any future unauthorized conveyances of, or any changes in, federal public land designation. Specifies that the provisions of the bill do not apply to the conveyance of federal public lands pursuant to a conservation plan. Prohibits professional licensing entities within state government from taking disciplinary action, including disbarment, suspension, loss of credential, registration, or other professional privilege, against a public employee, or employee of a government contractor, subcontractor or grantee in connection with actions taken by that person to: (1) report improper governmental action; or (2) communicate the results of, or information about, scientific or technical research in a scientific or public forum, or with the media. Specifies that this prohibition includes persons working in the environmental sciences and climate-change-related fields. Requires the California Environmental Protection Agency (CalEPA) to ensure that all scientific information and other data otherwise in the public domain is protected against censorship or destruction by the federal government. Requires the lead agency for a project to post notices related to compliance with the California Environmental Quality Act (CEQA) on its Internet Web site. Requires the lead agency to offer to provide such notices by to any person requesting them. Requires a county clerk to post notices regarding an environmental impact report or a negative declaration on the county s Internet Web site. If the lead agency determines that a project falls within a class of projects that is not subject to CEQA pursuant to guidelines developed by the Office of Planning & Research (OPR), and the agency approves or determines to carry out the project, requires the agency to file a notice of determination with the county clerk of each county in which the project will be located. Amends the 2016 Budget Act to include the following appropriations: (1) $100 million from the State Highway Account for the University of California, Merced Campus Parkway Project; (2) $400 million from the Transit and Intercity Rail Capital Program for an extension of the Altamont Commuter Express (ACE) service to the city of Merced; (3) $427.2 million from the State Highway Account for the Riverside County Transportation Efficiency Corridor Project; and (4) $50 million from the Trade Corridor Enhancement Account for a new Zero/Near-Zero Emission Warehouse Program to be administered by the California Air Resources Board (CARB). Deletes provisions in current law requiring the Department of Motor Vehicles to notify the Legislature of the receipt of an application from a manufacturer seeking approval to operate an autonomous vehicle on public roads. Status 3/20/17 Senate Appropriations Committee 3/28/17 Senate Judiciary Committee 2/14/17 Senate Appropriations Committee 4/5/17 Senate Floor As Introduced Senate Transportation & Housing Committee VTA Position Legislative Update Matrix

51 9.a State Senate Bills Subject Last Amended SB 150 (Allen) Regional Transportation Plans: Sustainable Communities Strategy SB 158 (Monning) Commercial Driver s Licenses: Training for Entry-Level Drivers SB 181 (Berryhill) State Agency Regulations Requires the California Air Resources Board (CARB) to update the greenhouse gas emissions reduction targets for a metropolitan planning organization s regional transportation plan (RTP) in a manner that is consistent with the latest available climate science and an assessment of the portion of the state s overall climate targets that will need to be met by reductions in vehicle miles traveled. Requires a metropolitan planning organization s sustainable communities strategy or alternative planning strategy to include an appendix that outlines the region s transportation planning and programming activities, with those activities based on criteria developed with input from a broad range of stakeholders in order to prioritize transportation projects for programming that reduce criteria air pollutants and vehicle miles traveled, while maximizing co-benefits, including public health, social equity and conservation. Requires projects to be listed in this appendix in the order of their ability to achieve those objectives. Specifies that the criteria for the appendix should include: (1) a reduction in criteria air pollutants; (2) a reduction in per capita carbon dioxide emissions from cars and light duty trucks based on assigned regional greenhouse gas emissions reduction targets; (3) a reduction in vehicle miles traveled of 15 percent by cars and light duty trucks by 2050; (4) an increase in the average daily time spent walking or bicycling for transportation purposes; and (5) a decrease in the share of low-income and lower middle-income residents household income consumed by transportation and housing. Beginning January 1, 2018, requires CARB to monitor each metropolitan planning organization s sustainable communities strategy or alternative planning strategy, and to prepare a progress report every four years for submission to the California Transportation Commission (CTC). Requires such monitoring by CARB to include an assessment of whether the metropolitan planning organization is on track to reduce regional vehicle miles traveled by 15 percent by 2050, and to achieve the greenhouse gas emissions reduction targets established by CARB. Requires CARB to complete its initial assessment by March 1, 2018, and to complete future assessments every four years thereafter. By February 7, 2020, requires the Department of Motor Vehicles (DMV) to adopt regulations related to training for entry-level drivers of commercial motor vehicles. Requires the course of instruction for such drivers to include the following: (1) for an applicant for a Class A commercial driver s license, a minimum of 30 hours of behind-the-wheel training, at least 10 hours of which must be on an offhighway facility and 10 hours of which must be on a public road; and (2) for an applicant for a Class B commercial driver s license, a minimum of 15 hours behind-the-wheel training, at least 7 hours of which must be on a public road. Requires a state agency proposing to adopt a new regulation to identify two existing regulations that it previously adopted that would be repealed upon the adoption of the new regulation. Provides that the adoption of the proposed new regulation shall be contingent upon the repeal of the two existing regulations that have been identified by the state agency. Status 4/6/17 Senate Environmental Quality Committee 4/17/17 Senate Appropriations Committee 4/5/17 Senate Governmental Organization Committee VTA Position Legislative Update Matrix

52 9.a State Senate Bills Subject Last Amended SB 185 (Hertzberg) Vehicle Code Violations: Indigent Defendants SB 224 (Jackson) CEQA: Baseline Physical Conditions SB 251 (Cannella) Merced County: Autonomous Vehicles Pilot Project In any case involving an infraction under the Vehicle Code filed with the court, requires the court to determine whether the defendant is indigent for purposes of establishing the amount of any associated fine, fee, assessment, or other financial penalties that the person can afford to pay. If a defendant is determined to be indigent, requires the court to reduce the base fine, penalty assessments, any state or local fees, and any civil assessments by 80 percent on all charges pending against the defendant. Requires the court to provide alternatives to immediate payment of a sentence for a Vehicle Code infraction, including a payment plan option. Requires the court to determine the amount that a defendant can afford to pay per month by using a payment calculator developed by the Judicial Council. For persons not found to be indigent, requires that the monthly payment not exceed 5 percent of the defendant s family monthly income, excluding deductions for essential living expenses. For defendants found to be indigent, requires the monthly payments to be $0 until the person s financial circumstances change, and requires the remaining amount owed to be discharged after 48 months in the interest of justice. At the time of the next review of the guidelines prepared and developed to implement the California Environmental Quality Act (CEQA), requires the Office of Planning & Research to prepare, develop and transmit to the Natural Resources Agency recommended proposed changes or amendments to determine the baseline physical conditions by which a lead agency determines whether a project has a significant effect on the environment. In developing these recommendations, requires the Office of Planning & Research to limit the consideration of modifications to the environment at the project site caused by either of the following: (1) actions undertaken without an environmental review for emergency repairs to public service facilities necessary to maintain service, or specific actions necessary to prevent or mitigate an emergency; or (2) actions that are unpermitted or illegal at the time the action was undertaken. Authorizes the County of Merced to conduct a pilot project for the testing of autonomous vehicles that do not have a driver seated in the driver s seat, and that are not equipped with a steering wheel, a brake pedal or an accelerator, provided that the testing is conducted only at the Castle Commerce Center, inclusive of public roads within the center. Prior to the start of testing of any autonomous vehicles pursuant to this bill, requires Merced County, or a private entity, or a combination of the two to do both of the following: (1) obtain an instrument of insurance, surety bond or proof of self-insurance in an amount of $5 million; and (2) submit a detailed description of the testing program to the Department of Motor Vehicles (DMV). Requires the operator of the autonomous vehicle technology being tested to disclose to an individual participating in the pilot project what personal information, if any, concerning the individual will be collected by the autonomous vehicle. For the testing of autonomous vehicles within the Castle Commerce Center, allows the DMV to require data collection for evaluating the safety of the vehicles. Specifies that the bill does not limit the authority of the DMV to promulgate regulations governing the testing and operation of autonomous vehicles on public roads, with or without the presence of a driver inside the vehicle. Specifies that the provisions of the bill shall remain in effect only until 180 days after the operative date of any regulations promulgated by the DMV that allow for the testing of autonomous vehicles without a driver in the vehicle. Requires any testing of autonomous vehicles conducted by Merced County to conform to those regulations. Status 3/20/17 Senate Public Safety Committee 4/5/17 Senate Environmental Quality Committee As Introduced Senate Transportation & Housing Committee VTA Position Legislative Update Matrix

53 9.a State Senate Bills Subject Last Amended SB 263 (Leyva) Regional Climate Assistance Centers SB 264 (Nguyen) I-405 Corridor Express Lanes SB 285 (Atkins) Public Employers: Union Organizing Requires the Strategic Growth Council to establish no less than 10 regional climate assistance centers, as follows: (1) one center in Northern California by January 1, 2020; (2) one center in Southern California by January 1, 2020; (3) one center in the San Joaquin Valley by January 1, 2020; and (4) the remaining centers to be equitably distributed across urban and rural areas of the state by January 1, Requires the regional centers to do all of the following: (1) provide technical assistance to target user groups in applying for money for programs funded with cap-and-trade action proceeds from the Greenhouse Gas Reduction Fund, the Active Transportation Program, and programs under the California Farmland Conservancy Program Act; (2) provide technical assistance and training to target user groups in project management and implementation for the projects funded under the aforementioned programs; and (3) seek scientific and technical support from federal, state and local sources of expertise in accomplishing the goals of the center, as needed. In addition, requires the centers to work with local organizations to formulate policy ideas that accomplish any of the following: (1) increase community and private-sector engagement in addressing climate change; (2) increase equitable investment in disadvantaged communities; (3) maximize the co-benefits of climate-related projects; (4) expand workforce development training; and (5) identify strategies that prevent the displacement of persons and families of low or moderate income. Requires the Strategic Growth Council to do all of the following: (1) conduct outreach and provide direct technical assistance to the regional centers and the public in order to identify relevant state funding programs, develop eligible activities and prepare grant applications; (2) promote the effective integration of state climate investment programs for low-income customers and disadvantaged communities; (3) identify potential matching funds from federal, state and local agencies; and (4) convene an annual statewide summit for regional center staff and grant recipients. Requires net excess toll revenues from the I-405 Corridor express lanes between State Route 73 and I- 605 in Orange County to be allocated as follows: (1) 20 percent to the Orange County Transportation Authority (OCTA); (2) 70 percent equally distributed to cities along the project corridor; and (3) 10 percent equally distributed to cities that are not along the project corridor. Requires these revenues to be expended only to enhance traffic flow, reduce traffic congestion and mitigate road wear to streets within three miles of the I-405 Corridor. Provides that eligible expenditures are limited to capital improvements, operational improvements and maintenance to on-ramps, off-ramps, connector roads, bridges, or other structures that are related to the tolled or non-tolled facilities within three miles of the I-405 Corridor. Prohibits a public employer from deterring or discouraging employees from becoming or remaining members of an employee organization. Grants the Public Employment Relations Board jurisdiction over violations of this prohibition. Status 3/21/17 Senate Natural Resources & Water Committee 4/4/17 Senate Transportation & Housing Committee 3/14/17 Senate Public Employment & Retirement Committee VTA Position Legislative Update Matrix

54 9.a State Senate Bills Subject Last Amended SB 337 (Bates) Repatriation Infrastructure Fund SB 406 (Leyva) Blood Transport Vehicles SB 414 (Vidak) High-Speed Rail: Bond Funding Requires the Department of Finance, in consultation with the Franchise Tax Board, to estimate, on an annual basis, the amount of revenues to be received from state taxes in the next fiscal year as a consequence of the enactment of a federal corporate repatriation statute under which the foreign earnings of U.S.-based corporations that are currently invested abroad are moved to the United States. After reservation of the appropriate amounts required for K-14 education pursuant to Proposition 98 and for the Budget Stabilization Account, specifies that the remaining repatriation revenues are to be transferred to a newly created Repatriation Infrastructure Fund. Requires the revenues in this fund to be continuously appropriated to the California Transportation Commission (CTC) and allocated as follows: (1) 65 percent for trade corridor projects; (2) 30 percent to cities and counties for local streets/roads; and (3) 5 percent to the Public Transportation Account (PTA). Specifies that the provisions of the bill would become inoperative on July 1, Authorizes a blood transport vehicle to use a high-occupancy vehicle (HOV) lane without the required number of occupants, if the vehicle is displaying a distinctive decal, label or other identifier issued by the Department of Motor Vehicles (DMV) that clearly distinguishes it from other vehicles. Requires a blood transport vehicle displaying such decal, label or other identifier to be granted toll-free or reducedrate passage in a high-occupancy toll (HOT) lane, unless prohibited by federal law. Defines a blood transport vehicle to mean a vehicle that transports blood between collection points and hospitals or storage centers. Specifies that no further bonds shall be sold for high-speed rail purposes pursuant to the Safe, Reliable High-Speed Passenger Train Bond Act for the 21 st Century (Proposition 1A), except as specifically provided with respect to an existing appropriation for early improvement projects related to the Phase I blended system. Upon appropriation by the Legislature, requires the unspent proceeds received from outstanding bonds issued and sold for high-speed rail purposes prior to the effective date of the provisions of this bill to be redirected to retiring the debt incurred from the issuance and sale of those outstanding bonds. Allows the remaining unissued bonds, as of the effective date of the provisions of this bill, that were authorized for high-speed rail purposes to be issued and sold. Upon appropriation by the Legislature, requires the net proceeds from the sale of these remaining unissued bonds to be made available as follows: (1) 50 percent to the California Transportation Commission (CTC) for allocation to repair and new construction projects on state highways and freeways; and (2) 50 percent to the Controller s Office for apportionment to cities and counties for transportation projects or other infrastructure improvements. Makes no changes to the authorization under Proposition 1A for the issuance of $950 million in bonds for rail purposes other than high-speed rail. Specifies that the provisions of the bill would become effective only upon approval by the voters at the June 5, 2018, statewide primary election. As Introduced Status Senate Governance & Finance Committee 3/23/17 Senate Transportation & Housing Committee As Introduced Senate Transportation & Housing Committee VTA Position Legislative Update Matrix

55 9.a State Senate Bills Subject Last Amended SB 415 (Vidak) High-Speed Rail: Real Property SB 422 (Wilk) Public-Private Partnerships SB 450 (Hertzberg) Public Notice of Bond Issuances SB 477 (Cannella) Intercity Rail Corridors: Extensions SB 480 (Hueso) State Highway Account: Bridge Safety Projects For real property acquired by the state on or after January 1, 2018, for high-speed rail purposes, requires the California High-Speed Rail Authority to make a good faith effort to sell or exchange such property within three years from the date of acquisition if the authority has not begun construction on the property within that period of time. For real property acquired by the state before January 1, 2018, for high-speed rail purposes, requires the California High-Speed Rail Authority to make a good faith effort to sell or exchange such property by January 1, 2021, if the authority has not begun construction on the property by then. If the California High-Speed Rail Authority leased, prior to January 1, 2018, real property acquired by the state for high-speed rail purposes, requires the authority to make a good faith effort to sell or exchange such property within three years from the date of the expiration of the lease, if the authority has not begun construction on the property within that period of time. Re-enacts and makes permanent the statutory authority for Caltrans and regional transportation agencies, including the Santa Clara Valley Transportation Authority (VTA), to utilize public-private partnerships for transportation infrastructure projects. Prior to authorizing a bond issuance, requires the governing body of a public entity to obtain and disclose all of the following information in a meeting open to the public: (1) the annual percentage rate of the bond, which means the cost of interest expressed as a yearly rate; (2) the finance charge of the bond, which means the sum of all charges payable by the borrower, including interest and transaction costs, expressed in dollar terms; (3) the amount financed by the bond, which means the amount of credit provided by the lender; (4) the total payment amount, which means the sum total of all payments the borrower will have made by the time the full balance has been paid, including all fees and finance charges. Requires this information to be obtained as follows: (1) as a good faith estimate from an underwriter, financial adviser or private lender; or (2) from a third-party borrower, if the public body issuing the bonds is a conduit financing provider. At any time after an interagency transfer agreement for an intercity rail corridor between Caltrans and a joint powers board has been executed, allows the agreement to be amended to extend the affected rail corridor to provide intercity rail service beyond the defined boundaries of the corridor. Requires a proposed extension to be recommended and justified in the business plan for the intercity rail corridor by the joint powers board, and to be approved by the California State Transportation Agency (CalSTA). In addition, requires the joint powers board to make a determination that the proposed extension would not jeopardize or come at the expense of other existing intercity rail services. For FY 2019, requires the Controller s Office, based on financial statements from the prior fiscal year, to segregate 1 percent of the money in the State Highway Account to be expended by Caltrans, upon appropriation by the Legislature, for feasibility, environmental and engineering studies pertaining to bridge safety, with priority being given to bridges that provide transportation links over state and local parks, and for other bridge safety projects in the state. As Introduced Status Senate Transportation & Housing Committee 3/20/17 Senate Transportation & Housing Committee 3/22/17 Senate Governance & Finance Committee 3/27/17 Senate Transportation & Housing Committee 3/29/17 Senate Transportation & Housing Committee VTA Position Support Legislative Update Matrix

56 9.a State Senate Bills Subject Last Amended SB 496 (Cannella) Design Professionals: Indemnity SB 584 (de Leon) California Renewables Portfolio Standard Program SB 594 (Beall) Caltrans: Contracts SB 595 (Beall) Caltrans: Redundant Positions SB 603 (Glazer) BART: Work Stoppages SB 604 (Glazer) BART: Prohibition of Strikes by Employees For contracts entered into on or after January 1, 2018, by a public agency for design professional services, prohibits the cost to defend against a lawsuit charged to the design professional from exceeding his or her proportionate percentage of fault. In the event that one or more defendants is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, requires the design professional to meet and confer with the other parties regarding unpaid defense costs. Specifies that the provisions of the bill do not apply in either of the following situations: (1) any contract for design professional services where a project-specific general liability policy insures all project participants from general liability exposures on a primary basis and also covers all design professionals for their legal liability arising out of their professional services on a primary basis; or (2) a design professional who is a party to a written design-build joint venture agreement. Exempts state agencies from the provisions of the bill. Restates the goals of the California Renewables Portfolio Standard Program to achieve a target of generating 50 percent of total retail sales of electricity in the state from eligible renewable energy resources by December 31, 2025, and 100 percent by December 31, Requires Caltrans, to the extent permitted under federal and state law, to establish and meet all of the following goals: (1) to achieve at least an aggregate 25-percent participation rate by small businesses and disadvantaged business enterprises in federally funded projects; (2) to achieve at least an aggregate 30-percent participation rate by small businesses and disadvantaged business enterprises in state-funded projects; and (3) to achieve at least a 15-percent participation rate by disabled veteran business enterprises in state-funded projects. By January 1, 2019, requires Caltrans to identify at least 500 redundant positions at the department and to put any savings from eliminating those positions into state-owned roadway maintenance and upkeep. Prohibits the Bay Area Rapid Transit District (BART) from entering into an agreement that would limit its ability to prepare for, or operate during, a work stoppage. Prohibits the employees of the Bay Area Rapid Transit District (BART) from engaging in a strike or work stoppage if the BART Board of Directors maintains all provisions of an expired contract, including compensation and benefit provisions, and an employee or union has agreed to a provision prohibiting strikes in the expired or previous written labor contract. Provides that an employee whom BART finds willfully engaged in a strike or work stoppage in violation of the provisions of this bill is subject to dismissal if that finding is sustained upon conclusion of the appropriate proceedings necessary for the imposition of a disciplinary action on the employee. Status 4/5/17 Senate Floor As Introduced Senate Rules Committee 4/5/17 Senate Transportation & Housing Committee 4/5/17 Senate Transportation & Housing Committee As Introduced As Introduced Senate Public Employment & Retirement Committee Senate Public Employment & Retirement Committee VTA Position Legislative Update Matrix

57 9.a State Senate Bills Subject Last Amended SB 614 (Hertzberg) Passenger Misconduct Violations and Fare Evasion: Administrative Fines SB 640 (Hertzberg) Retail Sales Tax on Services SB 680 (Wieckowski) BART: Transit- Oriented Development For those public transit agencies that adopt and enforce an ordinance to impose administrative penalties for fare evasion and certain passenger misconduct violations, requires the revenues from the administrative fines to be deposited with the transit agency that issued the citation, rather than in the general fund of the county in which the citation is administered. Limits the amount of the administrative fines to a maximum of $125 for the first and second violation, and to a maximum of $200 for the third and any subsequent violation. Requires the public transit agency to permit the performance of community service in lieu of payment of the administrative fine if the person is under 18 years of age or provides satisfactory evidence of an inability to pay the fine in full. Allows the public transit agency to require the performance of community service at its facilities. States that the intent of the bill is to make the following three broad changes to California s tax code: (1) provide tax relief to middle- and low-income Californians, while simplifying the personal income tax, maintaining progressivity and mitigating the reliance on top income earners; (2) broaden the tax base by imposing a modest sales tax on services; and (3) enhance the state s business climate, and incentivize entrepreneurship and business creation by lowering the corporate income tax on small businesses, exempting very small business from the sales tax on services, and significantly reducing the minimum franchise tax. Creates the Retail Sales Tax on Services Fund in the State Treasury. States that the intent is to appropriates money in the fund to: (1) provide tax relief to middle- and low-income Californians to offset the effect of the sales tax on services; (2) assist in securing greater stability for California s infrastructure, workforce, and health care and education systems, including higher education; and (3) enhance California s business climate, and incentivize and protect small businesses. Allows the Bay Area Rapid Transit District (BART) to acquire property for transit-oriented joint development that is located within a half mile of a transit facility, rather than within a quarter mile, as is the case under current law. Status 4/5/17 Senate Transportation & Housing Committee As Introduced As Introduced Senate Governance & Finance Committee Senate Transportation & Housing Committee VTA Position Support Legislative Update Matrix

58 9.a State Senate Bills Subject Last Amended SB 760 (Wiener) Active Transportation and Complete Streets SB 768 (Allen) Public-Private Partnerships Establishes a Division of Active Transportation within Caltrans to be responsible for: (1) developing projects and programs that increase bicycle and pedestrian safety and trips statewide; and (2) reviewing all state highway capital improvement projects for inclusion of bicycle and pedestrian facilities, where feasible. Requires the California State Transportation Agency to assign an undersecretary to give attention to active transportation matters to guide progress toward meeting Caltrans active transportation goals and objectives. Requires the California Transportation Commission (CTC) to give high priority to increasing safety for bicyclists and pedestrians, and implementing bicycle and pedestrian facilities. By January 1, 2018, requires Caltrans to update its Highway Design Manual to incorporate the complete streets design concept. Requires the Assets Management Plan currently prepared by Caltrans to prescribe a process for community input and complete streets implementation to prioritize safety and accessibility for bicyclists, pedestrians and public transit users on all State Highway Operation and Protection Program (SHOPP) projects, where applicable. In connection with the Assets Management Plan, requires the CTC to adopt performance measures that include: (1) conditions of bicycle and pedestrian facilities; (2) accessibility and safety for bicyclists, pedestrians and public transit users; and (3) vehicle miles traveled on the state highway system. Adds capital improvements related to accessibility for bicyclists, pedestrians and public transit users of state highways and bridges to the list of projects that are eligible for SHOPP funding. Requires Caltrans to specify the cost of bicycle and pedestrian facilities for each project programmed in the SHOPP. When undertaking any capital improvement project on a state highway or a local street crossing a state highway that is funded through the SHOPP, requires Caltrans, by January 1, 2020, to include new bicycle and pedestrian facilities or improvements to existing facilities as part of the project, consistent with specified requirements. Requires Caltrans to establish a project development team for each SHOPP project, which shall include representatives from the local transportation agency, the local bicycle and pedestrian advisory committee, community-based organizations, residents of low-income disadvantaged communities, and other local stakeholders impacted by the project. Requires the project development team to provide input to Caltrans on identifying bicycle and pedestrian facility and public transit access needs related to the project. Requires Caltrans to use 3 percent of SHOPP funds from the Road Maintenance and Rehabilitation Account, if that account is created through legislation, for bicycle and pedestrian facilities. Makes accessibility improvements for all users of the transportation system that improve the efficiency of moving people within existing roadways, reduce vehicle miles traveled and promote public health the highest priority for State Highway Account funding. Requires safety improvements funded from the State Highway Account to prioritize reducing fatalities and severe injuries for vulnerable road users, and prohibits these projects from increasing vehicle miles traveled. Re-enacts and makes permanent the statutory authority for Caltrans and regional transportation agencies, as defined, to utilize public-private partnerships for transportation infrastructure projects. As Introduced Status Senate Transportation & Housing Committee 3/27/17 Senate Transportation & Housing Committee VTA Position Legislative Update Matrix

59 9.a State Senate Bills Subject Last Amended SCA 2 (Newman) Motor Vehicle Fees and Taxes: Restrictions on Expenditures SCA 6 (Wiener) Local Transportation Special Taxes SCA 10 (Moorlach) Public Employee Retirement Benefits Calls for placing before the voters an amendment to the California Constitution to exempt appropriations of revenues from the Road Maintenance and Rehabilitation Account that is proposed to be created pursuant to SB 1 (Beall) from counting toward the state appropriation limit (Gann Limit). Requires all revenues derived from the state sales tax on diesel fuel to be deposited into the Public Transportation Account (PTA) and used exclusively for mass transportation purposes. Prohibits the Legislature from taking any action that would temporarily or permanently divert or appropriate these PTA revenues for non-mass transportation purposes; or that would delay, defer, suspend, or otherwise interrupt the quarterly deposit of these revenues into the PTA. Requires the revenues derived from the new transportation improvement fee that would be imposed by SB 1 to be used solely for transportation purposes. Prohibits transportation improvement fee revenues from being used to pay the principal or interest on state transportation general obligation bonds that were authorized by the voters prior to November 8, Prohibits the use of these revenues to pay the principal or interest on any state transportation general obligation bond acts approved by the voters after November 8, 2016, unless the bond act expressly authorizes that use. Prohibits the Legislature from borrowing or using transportation improvement fee revenues for purposes other than those authorized in SB 1. Calls for placing before the voters an amendment to the California Constitution to allow a local government to impose, extend or increase a special tax in order to provide funding for transportation purposes, if approved by a 55 percent majority vote. Specifies that a tax provides funding for transportation purposes if 100 percent of the net revenues from the tax, after collection and administrative expenses, is dedicated to transportation programs and projects. Specifies that this amendment would take effect on the date of the election at which it is approved by the voters. Calls for placing before the voters an amendment to the California Constitution to prohibit a government employer from providing its employees any retirement benefit increase until that increase is approved by a two-thirds vote of the electorate within the employer s jurisdiction and that vote is certified. Defines retirement benefit to mean any post-employment benefit, including a benefit provided through a defined benefit pension plan, defined contribution plan, retiree health care plan, or any form of deferred compensation offered by a government employer. Defines benefit increase to mean any change that increases the value of an employee s retirement benefit, including increasing a benefit formula or the rate of cost-of-living adjustments, expanding the categories of pay included in pension calculations, reducing a vesting period, lowering the eligible retirement age, or otherwise providing a new economic advantage for the employee. Status 3/30/17 Senate Floor 3/29/17 Senate Governance & Finance Committee As Introduced Senate Public Employment & Retirement Committee VTA Position Support Legislative Update Matrix

60 10 Date: April 26, 2017 Current Meeting: May 10, 2017 Board Meeting: N/A BOARD MEMORANDUM TO: THROUGH: FROM: SUBJECT: Santa Clara Valley Transportation Authority 2000 Measure A Citizens Watchdog Committee General Manager, Nuria I. Fernandez Advisory Committee Coordinator, Stephen Flynn Conduct CWC Public Hearing Policy-Related Action: No Government Code Section Applies: No ACTION ITEM RECOMMENDATION: Conduct, as part of the May 10, 2017 Citizens Advisory Committee/Citizens Watchdog Committee meeting, the required 2000 Measure A Citizens Watchdog Committee (CWC) public hearing to receive input from the public on the Measure A Program, its expenditures, the results of the CWC s annual independent compliance audit, and on 2000 Measure A Program reports for the period of FY BACKGROUND: In November 2000, Santa Clara County voters approved Measure A, a 30-year half cent sales tax devoted to enhancing the county s public transit system. The Measure A ballot specified that, among other duties, the Citizens Watchdog Committee (CWC) must: Review all 2000 Measure A expenditures. Have an audit conducted each fiscal year by an independent auditor to ensure tax dollars are being spent in accordance with the intent of this measure. Hold public hearings and issue reports on at least an annual basis to inform Santa Clara County residents how the funds are being spent. Publish the results of the independent audit and the annual report in local newspapers.

61 10 DISCUSSION: To fulfill its responsibility, at its April 12, 2017 meeting the Citizens Watchdog Committee voted to conduct its public hearing on FY 2016 (July 1, June 30, 2016) 2000 Measure A expenditures on Wednesday, May 10, 2017 at 6:00 p.m. in the VTA River Oaks Auditorium. The public hearing will be held in combination with the monthly Citizens Advisory Committee (CAC)/CWC meeting. The CAC/CWC general meeting will begin at its normal 4:00 p.m. start time and the hearing will begin time-specific at 6:00 p.m. If the CAC/CWC meeting is still underway at 6:00 p.m., it will be paused to conduct the public hearing, then resume at the conclusion of the public hearing. Purpose The public hearing provides the public with the defined opportunity to share their views, opinions, and concerns with the CWC on the 2000 Measure A Program expenditures, the results of the annual independent audit, and on 2000 Measure A Program reports. The CWC will combine the input received at the hearing with information and input received from the independent compliance audit and other sources to render a conclusion on whether 2000 Measure A tax dollars are being spent in accordance with the intent of the measure. Public Notice The public notice announcing the hearing was published twice in mid-to-late August/early September 2016 in the following general circulation newspapers in VTA s service area: The Metro Sing Tao (Chinese) El Observador (Spanish/Hispanic) Viet Nam (Vietnamese) Philippines Today (Tagalog) Korea Daily Times (Korean) Morgan Hill Times Gilroy Dispatch Santa Clara Weekly Mountain View Voice Palo Alto Weekly Los Altos Town Crier Evergreen Times Silicon Valley Community Newspapers (10 total: Almaden Resident; Cambrian Resident, Campbell Reporter; Cupertino Courier, Los Gatos Weekly Times; Milpitas Post; Rose Garden Resident, Saratoga News; Sunnyvale Sun; and Willow Glen Resident) Page 2 of 4

62 10 In addition, the public announcement was: Posted on the CWC s page on VTA s website Placed as a flash banner on the homepage of VTA s website Included on informational signs on VTA vehicles and facilities Displayed on VTA Wi-Fi (Express Bus and light rail) Posted on electronic media sites such as FREQUENCE Distributed to libraries and other public buildings throughout Santa Clara County Requested for free online advertising from the aforementioned general circulation newspapers in VTA s service area Posted to Facebook and Nextdoor and mentioned via Twitter Announced via to GovDelivery subscribers and to past attendees of VTA public meetings and forums Provided to Mr. Roadshow, San Jose Mercury News columnist Gary Richards Provided to CWC members for distribution to their stakeholder groups, community, civic, charitable and trade organizations, and friends and neighbors. The public notice specified the hearing time, location and purpose and how written comments could be submitted. It also indicated that sign language services and additional interpreter services would be provided with prior request. It further indicated that detailed program information could be accessed both on VTA s website and at specified VTA facilities, libraries and other public facilities. The notice published in newspapers referred the public to VTA s website for more information. The detailed version on VTA s website provided additional information and explanation, including a brief history of the 2000 Measure A Program, a listing of the projects contained in the ballot along with links to the detailed project status pages, photographs or renderings of some of the projects, and a description of the CWC s role, responsibilities and limitations. The Hearing Process The CWC chairperson formally opens the hearing, describing its purpose. At its conclusion, the chairperson formally closes the hearing, at which time the Committee resumes its normal business, if any. The Committee receives input from the public at the hearing but does not debate or engage in extended discussion with speakers or other CWC members. Committee members may ask brief questions to clarify a statement or issue. If readily available or easily answered, the Committee or staff may provide brief answers to a speaker s question. All other questions will be referred to staff to provide a written response from the Committee. All speakers will be requested to fill out a blue speaker s card and to verbally state their name for the record. Speakers will be limited to providing comments on 2000 Measure A Program-related issues only, and will be limited to two minutes unless the chairperson deems that additional time is warranted. Page 3 of 4

63 10 Following the Hearing transcript of the proceedings prepared by a court reporter and an audio recording of the hearing will be available to the public within a reasonable period following the hearing. The Committee will develop its conclusion on whether 2000 Measure A tax dollars are being spent in accordance with the intent of the measure, which is then reflected in the CWC s Annual Report. The CWC s finding will be published in local newspapers. This notice will also indicate that the detailed Annual Report is available and how to access it on VTA s website. The Committee will determine a publication strategy for informing the public of its findings and the availability of its Annual Report, both via the required ads in local newspapers as well as other methods such as informational posting on electronic media sites, posting on social media including Facebook and Twitter, announcements to GovDelivery subscribers and past attendees of VTA public meetings and forums, etc. ALTERNATIVES: There is no alternative since the 2000 Measure A ballot mandates that the CWC hold a public hearing at least annually. FISCAL IMPACT: There is no significant fiscal impact associated with conducting the CWC's required public hearing. Prepared by: Stephen Flynn, Advisory Committee Coordinator Memo No Page 4 of 4

64 11 Date: May 4, 2017 Current Meeting: May 10, 2017 Board Meeting: June 1, 2017 BOARD MEMORANDUM TO: THROUGH: FROM: SUBJECT: Santa Clara Valley Transportation Authority Citizens Advisory Committee General Manager, Nuria I. Fernandez Interim Director - Planning & Program Development, Carolyn M. Gonot 2016 Measure B Program Area Guidelines Policy-Related Action: No Government Code Section Applies: No ACTION ITEM RECOMMENDATION: Recommend that the VTA Board of Directors adopt the 2016 Measure B Program Area Guidelines. BACKGROUND: On November 8, 2016, the voters of Santa Clara County overwhelmingly approved a 30-year, ½ cent sales tax measure supporting transportation projects and services known as 2016 Measure B. The ½ cent sales tax collection began on April 1, Measure B, lists and describes the following nine program categories and corresponding amounts: Program Category Local Streets & Roads BART Phase II Bicycle & Pedestrian Caltrain Grade Separations Caltrain Corridor Capacity Improvements Highway Interchanges County Expressways SR 85 Corridor Transit Operations *Capped at 25% of Program Tax Revenue Amount (in 2017 Dollars) $1.2 Billion $1.5 Billion* $250 Million $700 Million $314 Million $750 Million $750 Million $350 Million $500 Million

65 11 The VTA Board adopted Resolution No can be found in Attachment A. With the passage of the 2016 Measure B sales tax, VTA must develop guidelines for each of the nine program areas. VTA presented a work plan to the Board and advisory committees in December The work plan primarily focused on receiving input and recommendations from VTA s advisory committees. A summary of the outreach to date is as follows: January VTA held a workshop with the Technical Advisory Committee (TAC) to receive their initial input and recommendations regarding all nine programs. February VTA presented staff s initial draft guidelines and received feedback for the Bicycle & Pedestrian Program, Caltrain Corridor Capacity Program and the Caltrain Grade Separations Program from VTA s TAC, Citizen s Advisory Committee (CAC), Policy Advisory Committee (PAC) and the Congestion Management Program & Planning Committee (CMPP). Additionally, VTA presented the draft guidelines for the Bicycle & Pedestrian Program to the VTA Bicycle & Pedestrian Advisory Committee (BPAC). March VTA presented staff s initial draft guidelines and received feedback for the SR 85 Corridor Program, Local Streets & Roads Program and the BART Phase II Program from the TAC, CAC, PAC and CMPP. Additionally, staff presented the draft SR 85 Program guidelines to the SR 85 Policy Advisory Board. April VTA presented staff s initial draft guidelines and received feedback for the County Expressway Program, Highway Interchanges Program and Transit Operations Program from the TAC, CAC, and PAC. VTA presented the same set of draft guidelines to CMPP at their April 20, 2016, meeting. Additionally, VTA presented the draft guidelines for the Transit Operations Program to the VTA Committee for Transportation Mobility and Accessibility (CTMA). DISCUSSION: Based on the discussions with the advisory committees and CMPP, VTA developed and presented draft guidelines for each of the nine program areas, as well as recommended projected allocations for FY18 & FY19 to the VTA Board of Directors at their April Workshop. Based on input from the Board Members, VTA made minor modifications to the proposed guidelines. A summary of the recommended guidelines for each of the nine program areas is included in Attachment B. The proposed program area guidelines are intended to direct the implementation for each program area and propose how the program area funds should be allocated. VTA is recommending that projected 2016 Measure B funds be allocated in two-year increments in conjunction with VTA s two-year budget cycle. VTA will maintain a ten-year outlook to assist Member Agencies and other staff to help project when funds will be available for various program areas. A summary of the proposed FY18 & FY19 allocations for 2016 Measure B is located in Attachment C. Below is a brief description of the guidelines for each program area. Page 2 of 10

66 11 Local Streets & Roads Proposed Guidelines The Local Streets and Roads Program will allocate funds to the cities and the County on a formula basis to be used to repair and maintain the street system. The allocation is based on the population of the cities and the County of Santa Clara's road and expressway mileage. To distribute the funds, VTA is proposing that the cities and County submit an annual program of projects that will utilize 2016 Measure B funds. The expenditures will be reimbursable on a monthly, bi-monthly or quarterly basis - whichever is more convenient for the cities or County Measure B requires that cities and the County demonstrate that these funds will be used to enhance and not replace their current investments in road system maintenance and repair. VTA is recommending similar Maintenance of Effort requirements to 2017 Senate Bill 1: Road Maintenance and Rehabilitation Program. Under this recommendation, a baseline calculation of expenditures for each agency will be determined. The proposed baseline calculation will be based on the average expenditures on roadway and related maintenance activities from a city s/county s general fund during FY10 to FY12. Individual agencies must submit, with their annual program of projects, a certification that they are maintaining a level of non-2016 Measure B Local Streets & Roads fund expenditures on roadway and related maintenance activities equivalent to the baseline calculation. The Measure also requires that Complete Streets best practices be applied in order to improve bicycle, pedestrian and transit elements of the street system. VTA has been working with Member Agencies and stakeholders on complete streets reporting requirements. It is anticipated that the VTA Board of Directors will consider the complete streets reporting requirements in June Finally, 2016 Measure B specifies that jurisdictions that have a Pavement Condition Index (PCI) score of at least 70 may use the funds for other congestion relief projects at their discretion. Jurisdictions who qualify will submit their congestion relief projects as part of their annual program of projects. Should a Member Agency with a PCI of 70 or over fall below the threshold the following cycle, they will need to redirect their 2016 Measure B Local Streets & Roads funding to pavement maintenance at the next two-year budget allocation. Recommended Funding for FY To provide certainty for Member Agencies, VTA is recommending that funding for the Local Streets & Roads Program be consistent from year to year over the 30-year life of 2016 Measure B. Therefore, the proposed funding for FY is $80 million, which represents a two-year allocation based on $1.2 billion over the life of the program. Future allocations will vary depending on the amount of sales tax revenue collected. To prevent potential cash-flow issues, VTA is proposing a one-time advance, no sooner than October 1, 2017, to local agencies. The advance will be equivalent to the percentage of the local agency s allocation of the Local Streets and Roads Program Area s percentage share of revenue collections from April 2017 to June This one-time advance will be distributed upon Page 3 of 10

67 11 execution of the Master Funding Agreement between VTA and the jurisdiction, as well as the jurisdiction s submittal of their annual program of projects, Maintenance of Effort certification and Complete Streets Checklist reporting requirements. The remaining balance of the local agency s allocation will be reimbursable. The proposed FY18 and FY19 Local Streets and Roads allocations by agency is listed in Attachment D. BART Phase II Proposed Guidelines The BART Phase II project will be designed and constructed by VTA. The total cost is estimated at $4.7 billion. Any debt financing costs will be covered by tax revenues as described in 2016 Measure B. VTA is recommending that BART Phase II apply Complete Streets best practices in order to improve transit, bicycle and pedestrian elements as applicable. Recommended Funding for FY Funds for BART Phase II will not be needed at this time. Therefore, VTA is not recommending any funding for BART Phase II for FY Bicycle & Pedestrian Program Proposed Guidelines To deliver the projects and programs described above, VTA is recommending a program that will consist of three categories: 2016 Measure B Bicycle & Pedestrian Program Program Area Funding Allocation (Proposed) Education & Encouragement 15% Planning Projects 5% Capital Projects 80% The Education & Encouragement Program will allow member agencies to fund projects and programs that will encourage the use of bicycling and walking and/or provide education regarding these modes. These include, but are not limited to, Safe Routes to School, walk audits, open streets events, and bicycle/pedestrian safety campaigns. After much discussion with VTA s advisory committees, VTA is recommending this program be funded by a formula based on the following: a) $250,000 will be set aside for countywide (including targeting unincorporated areas) education and encouragement programs; and b) the remaining funds will be allocated by city population formula with a $10,000 annual minimum allocation. The Planning Projects Program will be administered as a competitive grant program, where Member Agencies may apply for planning funds that will allow them to advance projects of Page 4 of 10

68 11 countywide significance into shovel-ready status or construction. The Capital Projects Program will also be administered as a competitive grant program. Member Agencies may apply for activities leading to/including: Environmental Clearance; Design; Right of Way; and Construction for projects currently identified in 2016 Measure B. Construction grant requests must include cost estimates supported by 30% to 35% design. VTA is recommending a minimum contribution of 10% non-2016 Measure B funds be identified for all planning and capital projects. The contribution will help maximize 2016 Measure B revenues and allow more projects to be delivered. VTA is also recommending that the Bicycle & Pedestrian Program apply Complete Streets best practices to projects in the Planning Projects and Capital Projects Programs order to improve transit, bicycle and pedestrian elements. Recommended Funding for FY To provide certainty for Member Agencies, VTA is recommending that funding for the Bicycle & Pedestrian Program be consistent from year to year over the 30-year life of 2016 Measure B. Therefore, the proposed funding for FY is $16.7 million which represents a two-year allocation based on $250 million over the life of the program. Future allocations will vary depending on the amount of sales tax revenue collected. The proposed FY18 and FY19 Education & Encouragement Program allocations by agency is listed in Attachment E. Caltrain Grade Separations Proposed Guidelines This program will fund grade separations in the cities of Sunnyvale, Mountain View, and Palo Alto. VTA, working in collaboration with the three cities and other partners, is proposing to develop an implementation plan for delivering the eight grade separation projects. Once the implementation plan is complete, funds will be distributed as candidate projects move forward in readiness. The amount of funding in 2016 Measure B will likely not be enough to fully fund all eight projects listed in the Caltrain Grade Separation Program. To complete all eight projects, VTA would allocate 2016 Measure B funding to the most cost-effective grade separation alternatives possible. Additionally, VTA anticipates that outside funding sources will need to be secured to complete the program. VTA is also recommending that the grade separation projects apply Complete Streets best practices in order to improve transit, bicycle and pedestrian elements at the intersections. Recommended Funding for FY VTA is recommending $7 million for FY which will be used to fund the implementation plan, as well as any potential design and/or environmental work that cities may Page 5 of 10

69 11 be able to advance. Caltrain Corridor Capacity Improvements Proposed Guidelines This program will fund capacity improvements and increased service in Santa Clara County. The funds will be used for the following: Improvement projects identified by VTA and Caltrain after the completion of the Peninsula Corridor Electrification Project Increased Caltrain service to Morgan Hill and Gilroy While there is uncertainty regarding the funding for the Peninsula Corridor Electrification Project at this time, Caltrain is anticipating that the project will move forward. Once the Peninsula Corridor Electrification Project is completed, 2016 Measure B funds will be available for enhancement projects in Santa Clara County to improve the system further. VTA and Caltrain will identify the most cost-effective projects for funding. If other projects (including station improvements) should arise prior to completion of the electrification project that VTA believes should move forward, VTA will work with Caltrain to develop and recommend an early implementation schedule to the VTA Board of Directors. As the first step for additional service to Morgan Hill and Gilroy, VTA is working with Caltrain to optimize the current schedule to Morgan Hill and Gilroy to better serve current and future customers. Discussions with Caltrain executive management have been held to determine how and when a fourth south county train could be added. Caltrain is preparing approaches that should be available in late spring VTA is also recommending that Caltrain Corridor Capacity program area capital projects apply Complete Streets best practices in order to improve transit, bicycle and pedestrian elements. Recommended Funding for FY VTA is recommending $2 million for FY to provide funding for potential additional service to Morgan Hill and Gilroy. Funding for capacity improvements will be programmed once projects are identified at the conclusion of the Peninsula Corridor Electrification Project. Highway Interchange Program Proposed Guidelines To deliver the projects contained in 2016 Measure B, VTA s Project Development staff will generate a master candidate project timeline based on the following: Project Readiness Level of Contribution from non-2016 Measure B sources Geographic Considerations Page 6 of 10

70 11 Additionally, 2016 Measure B contains a category for Noise Abatement Projects in Santa Clara County to implement treatments to address existing freeway noise levels throughout the county. Noise abatement projects identified in the 2011 VTA Soundwall Study will receive higher consideration for funding. If an agency other than VTA delivers the project, the agency and VTA will enter into an agreement. The agreement will include the reporting requirements and processes for delivering the project. Funding for the project will be available on a reimbursable basis, and the agency may submit receipts for work performed on a monthly, bi-monthly or quarterly basis. It is expected that the level of contribution from non-2016 Measure B sources will be a minimum of 10%. However, projects that have higher levels of non-2016 Measure B contribution will have a greater chance of advancing. VTA is also recommending that all capital projects apply Complete Streets best practices in order to improve bicycle, pedestrian and transit elements of the system. Recommended Funding for FY VTA is proposing $87 million for FY This funding will allow shovel-ready projects to proceed into construction and help prepare the planning and environmental work for other projects to move forward. The cost of each phase of a proposed Highway Interchanges project will be finalized with execution of agreements with VTA for project funding. The list of the proposed Highway Interchanges projects for FY18 and FY19 are identified in Attachment F. County Expressways Proposed Guidelines To deliver the program, VTA will be working with the County of Santa Clara, the owner and operator of the County Expressway system. As part of this process, VTA, the County, and the County Expressway Policy Advisory Board will work together to develop an implementation schedule. VTA and the County of Santa Clara will execute a Master Agreement for the administration of the 2016 Measure B County Expressways Program. The agreement will include the reporting requirements and processes for delivering projects. As part of the agreement, a 10% non-2016 Measure B contribution will be required for the program. Funding for the projects will be available on a reimbursable basis, and the County may submit receipts for work performed on a monthly, bi-monthly or quarterly basis. VTA is also recommending that all projects apply Complete Streets best practices in order to improve transit, bicycle and pedestrian elements throughout the system. Page 7 of 10

71 11 Recommended Funding for FY The County of Santa Clara has several projects that are ready to move forward. VTA is recommending $50 million in FY to advance those projects. SR 85 Corridor Proposed Guidelines VTA staff has launched the SR 85 Transit Guideway Study to identify the most effective transit and congestion relief projects on SR 85. This study is expected to take approximately 18 months to complete. Projects identified from this study will be candidates for funding from the 2016 Measure B SR 85 Corridor Program Area. Upon completion of the SR 85 Transit Guideway Study, VTA is proposing to develop an implementation plan for SR 85 improvements. VTA is recommending that Complete Streets best practices be applied to all capital projects in order to improve bicycle, pedestrian and transit elements of the transportation system. Additionally, VTA is recommending a minimum contribution of 10% non-2016 Measure B funds be identified for all projects. The contribution will help maximize 2016 Measure B revenues and allow more projects and programs to be delivered to this corridor. The SR 85 Corridor Noise Reduction Study was completed in September The Noise Reduction Study identified five pilot project sites for noise reduction applications. As part of the SR85 Corridor Program Area, these five noise reduction pilot projects may be initiated/completed. Recommended Funding for FY VTA is recommending $12 million for FY to help fund the SR 85 Transit Guideway Study, an implementation plan for SR 85 Corridor improvements, and advancement of the noise reduction pilot projects. Transit Operations Proposed Guidelines The program is divided into the following categories: Enhance frequent core bus network. Support new/innovative transit service models to address first/last mile connections and services to transit dependent and paratransit customers. Expand mobility services and affordable fare programs for seniors, disabled, students and low income riders. Improve amenities at bus stops to increase safety, security and access, as well as on-going maintenance. Page 8 of 10

72 11 The proposed allocation of funds for the categories includes input from community stakeholders and is shown below: 2016 Measure B Transit Operations Program Area Area Funding Allocation (Proposed) Enhance Frequent Core Bus Network 73% Innovative Mobility Models & Programs 8% Fare Programs 15% Bus Stop Amenities 4% VTA is also recommending that all capital improvements projects apply Complete Streets best practices in order to improve transit, bicycle and pedestrian elements. Recommended Funding for FY Because the majority of this program will be used for operations, it is important that the funding be consistent from year to year over the 30-year life of 2016 Measure B. Therefore, the proposed funding for FY is $33.3 million, which represents a two-year allocation based on $500 million over the life of the program. Future allocations will vary depending on the amount of sales tax revenue collected. For this two-year budget allocation, the Frequent Core Bus Network and Bus Stop Amenities programs will provide funds for VTA to increase or gradually increase bus service and make improvements to bus stops. The Fare Programs will fund discount ticket programs for low-income residents and youth. The Innovative Mobility Models & Programs will provide funding for VTA and Member Agencies to develop innovative pilot programs to address first/last mile connections, as well as services for the transit dependent and paratransit customers. VTA will be working with Member Agencies and stakeholders over the coming months to further refine this program and develop a process for identifying the most effective projects and programs throughout the county. This will allow VTA, Member Agencies and stakeholders to consider the impacts and opportunities of the Next Network. Next Steps Once the guidelines are adopted by the VTA Board of Directors, VTA will work with Member Agencies to execute funding agreements for the various program areas. VTA will also begin establishing the criteria, process and schedules for the competitive grant programs. In addition, VTA will be working with project sponsors to ensure that project costs include funding for any ongoing operations and maintenance for 2016 Measure B capital projects owned and operated by VTA. ALTERNATIVES: The Board of Directors can choose to modify the proposed 2016 Measure B program area guidelines and/or FY allocations or not approve them at this time. However, delays in approval of the guidelines and/or allocations may delay steps in developing agreements with Page 9 of 10

73 11 Member Agencies as well as establishing competitive grant programs. FISCAL IMPACT: There is no direct fiscal impact from adoption of the 2016 Measure B Program Area Guidelines. However, the approved guidelines will inform the timing and amount of funding allocated to each program area in subsequent 2016 Measure B Program budgets. Prepared by: Jane Shinn Memo No ATTACHMENTS: MT6078_AttachmentA_Resolution (PDF) MT6078_AttachmentB_ProposedGuidelines_ (PDF) MT6078_AttachmentC_ProposedAllocation (PDF) MT6078_AttachmentD_ProposedLocalStreetsandRoadsAllocation (PDF) MT6078_AttachmentE_ProposedEducandEncAllocation (PDF) MT6078_AttachmentF_ProposedHwyICProjects (PDF) Page 10 of 10

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86 11.b Proposed Local Streets & Roads Program Guidelines Definition from Resolution No To be returned to the cities and the County on a formula basis to be used to repair and maintain the street system. The allocation would be based on the population of the cities and the County of Santa Clara s road and expressway lane mileage. Cities and the County will be required to demonstrate that these funds would be used to enhance and not replace their current investments for road system maintenance and repair. The program would also require that cities and the County apply Compete Streets best practices in order to improve bicycle and pedestrian elements of the street system. If a city or the County has a Pavement Condition Index score of at least 70, it may use the funds for other congestion relief projects. Total Funding $1.2 billion in 2017 dollars. Distribution Formula based distribution to Cities and County (agencies) as contained in 2016 Measure B. Agencies will be informed of allocation amount for a two year period. VTA anticipates that allocations will be programmed based upon the total allocation for Local Streets & Roads contained in 2016 Measure B divided by the number of years in the measure. Future allocations will vary depending on the amount of sales tax revenue collected. After a one time advance, no sooner than October 1, 2017, funds will be available on a reimbursement basis. Implementation VTA and individual agencies will enter into funding agreements. Agencies are required to submit an annual program of projects. For agencies with a Pavement Condition Index (PCI) of 70 or higher, the program of projects may also include congestion relief projects. For agencies with a PCI of 69 or lower, the program of projects is limited to projects that repair and maintain the street system. VTA will review the program of projects to ensure that all projects are eligible for funding. If an agency with a PCI of 70 or higher should have their PCI fall below 70, the agency must redirect all funding to repair and maintenance of the street system in the following cycle. A one time advance, no sooner than October 1, 2017, equivalent to the percentage of the local agency s allocation of the Local Streets and Roads Program Area s percentage Page 1 of 2 May 2, 2017

87 11.b share of revenue collections from April 2017 to June 2017 will be distributed to individual agencies upon: o Execution of the Master Funding Agreement between VTA and the Agency o Submittal of annual program of projects o Maintenance of Effort certification o Complete Streets Checklist reporting requirements Remaining funds will be available on a reimbursable basis. Agencies may submit invoices to VTA on a monthly, quarterly or annual basis. Invoices must be submitted within one year of the date posted on the contractor s invoice. Requirements Individual agencies must certify and submit on an annual basis, a Maintenance of Effort report to maintain a level of expenditures on 2016 Measure B Local Streets & Roads eligible activities equivalent to the average expenditures on roadway and related maintenance activities from the agency s general fund during FY10 to FY12. This certification will be submitted with their Annual Program of Projects. All projects must comply with VTA s Complete Streets Reporting Requirements. All collateral material will be required to display a 2016 Measure B logo. Agencies will submit project updates to VTA on a regular basis. The information will be placed on the 2016 Measure B website to keep the public informed on 2016 Measure B spending. Agencies may also be requested to present updates to the 2016 Measure B Citizen s Oversight Committee. Page 2 of 2 May 2, 2017

88 11.b Proposed BART Phase II Guidelines Definition from Resolution No To fund the planning, engineering, construction and delivery costs of BART Phase II, which will create a new regional rail connection by extending BART from the Berryessa Station in San Jose to Santa Clara with stations at Alum Rock/28 th Street, downtown San Jose, San Jose Diridon Station and Santa Clara. Total Funding $1.5 billion in 2017 dollars capped at a maximum of 25% of Program Tax Revenues. Distribution VTA will program funding to complete project. Debt financing costs (if any) will be covered by tax revenues as described in the 2016 Measure B Resolution. Requirements All collateral material will be required to display a 2016 Measure B logo. Project must comply with VTA s Complete Streets Reporting Requirements. Project requires a 10% non 2016 Measure B contribution. Page 1 of 1 May 4, 2017

89 11.b Proposed Bicycle & Pedestrian Program Guidelines Definition from Resolution No To fund bicycle and pedestrian projects of countywide significance identified by the cities, County and VTA. The program will give priority to those projects that connect to schools, transit and employment centers; fill gaps in the existing bike and pedestrian network; safely cross barriers to mobility; and make walking or biking a safer and more convenient means of transportation for all county residents and visitors. Bicycle and pedestrian educational programs such as Safe Routes to Schools, will be eligible for funding. Total Funding $250 million in 2017 dollars. Distribution Board of Directors will allocate funding schedule and amount for program through the budget cycle. Future allocations will vary depending on the amount of sales tax revenue collected. Funds will be distributed on a 2 year cycle. The program will consist of three categories: education & encouragement programs, planning studies, and capital projects. A total of 15% of available program area funds will be set aside for the education & encouragement category. The funds will be allocated as follows: o $250,000 for countywide (including targeting unincorporated areas) education & encouragement programs o Remaining funds allocated by city population formula with a $10,000 annual minimum allocation per city A maximum of 5% of available program area funds will be allocated to planning studies grants category. If the planning studies grants category is not fully awarded, the remaining funds will roll into the capital category. If a cycle s funds are not fully awarded, the balance will roll into the next cycle s budget. Example of breakdown of grant program funding: If Bicycle/Pedestrian Program Area is programmed at $8.3 million/year: o Capital $6.6 million (minimum) o Planning $415,000 (maximum) o Education & Encouragement $1.25 million (maximum) Page 1 of 3 May 2, 2017

90 11.b Implementation Education & Encouragement (Formula Distribution) VTA and individual agencies will enter into a Master Agreement for Education & Encouragement funds. VTA will notify agency of estimated allocation for two year cycle. Agency will submit annual education & encouragement work program. Funds will be available on a reimbursable basis. Agencies may submit invoices to VTA on a monthly, quarterly or annual basis. Invoices must be submitted within one year of the date posted on the contractor s invoice. Education & Encouragement funds may be banked for a maximum of three years with explanation of banking purposes. Grant Program (Competitive) Only a public agency can serve as a project sponsor. Other entities must partner with a public agency to apply for a grant. The grant program will contain two categories: o Capital projects Activities leading to/including: Environmental Clearance Design Right of Way Construction Construction grant requests must include cost estimates supported by 30% to 35% design. o Planning studies Includes planning studies to support capital project development for those projects currently listed on Attachment A of 2016 Measure B. It does not include general/master planning efforts. The minimum grant award is $50,000. The maximum grant award per sponsoring agency can be no more than 50% of the total available funds per call for projects per cycle, unless the cycle is undersubscribed. Project criteria will be developed in conjunction with the VTA Technical Advisory Committee (TAC) Capital Improvement Program Working Group, and brought to the TAC and Bicycle & Pedestrian Advisory Committee (BPAC) for input. Scoring committee for the grant program will be comprised of three BPAC members, three Member Agency staff, and one VTA staff person. Criteria Only projects currently listed on Attachment A of 2016 Measure B are eligible. Capital Projects will be scored on criteria that supports the language in 2016 Measure B. Page 2 of 3 May 2, 2017

91 11.b Countywide significance Connection to/serves schools, transit, or employment centers Fills gaps in bicycle/pedestrian network Provides safer crossings of barriers Makes walking or biking safer Makes walking or biking more convenient o Other criteria to consider: Safety benefits Increase in bicycle and pedestrian usage Community support Project readiness Projects serve Communities of Concern Requirements Competitive grant projects require a 10% non 2016 Measure B contribution. Reporting requirements will be detailed in agreements executed with VTA for project funding. All applications must include a delivery schedule. Funds will be available on a reimbursement basis. VTA Complete Streets reporting requirements will be required for Planning and Capital projects. All collateral material will be required to display a 2016 Measure B logo. Page 3 of 3 May 2, 2017

92 11.b Proposed Caltrain Grade Separation Program Guidelines Definition from Resolution No To fund grade separation projects along the Caltrain corridor in the cities of Sunnyvale, Mountain View and Palo Alto, separating the Caltrain tracks from roadways to provide increased safety benefits for drivers, bicyclists and pedestrians and also reduce congestion at the intersections. Total Funding $700 million in 2017 dollars. Distribution As candidate projects move forward in readiness (ability to expend Measure funds), the project sponsor will submit request for funding. Funds will be allocated to the most cost effective grade separation alternatives. Funds will be distributed on a reimbursement basis. Implementation VTA will work with the cities and other partners to develop an implementation plan for delivering the eight grade separation projects eligible for 2016 Measure B funds. There will be two program categories for funds: o Planning o Capital projects Criteria All project sponsors must apply to the State 190 Grade Separation Program. Requirements Reporting requirements regarding project progress will be detailed in agreements executed with VTA for project funding. Each project will require a 10% non 2016 Measure B contribution. All projects must be in compliance with VTA s Complete Streets Reporting Requirements. All collateral material will be required to display a 2016 Measure B logo. Page 1 of 1

93 11.b Proposed Caltrain Corridor Capacity Improvements Program Guidelines Definition from Resolution No To fund Caltrain corridor capacity improvements and increased service in Santa Clara County in order to ease highway congestion, including: increased service to Morgan Hill and Gilroy, station improvements, level boarding, extended platforms and service enhancements. Total Funding $314 million in 2017 dollars. Distribution Funds for increased service to Morgan Hill and Gilroy will be distributed on a regular basis. Funds for Caltrain Modernization 2.0 will be distributed to Caltrain as Santa Clara County s contribution for costs associated with station improvements, level boarding, extended platforms and service enhancements. Implementation VTA and Caltrain staff will determine operating and capital costs associated with increased service to Morgan Hill and Gilroy. Improvement projects will be identified by VTA and Caltrain staff after completion of Peninsula Corridor Electrification Project (PCEP) and CA High Speed Rail blended service operations and maintenance needs/issues have been identified and remedies finalized. Should projects (including station improvements) arise prior to the completion of the PCEP that VTA believes should move forward, VTA will work with Caltrain to develop and recommend an early implementation schedule to the VTA Board of Directors. Criteria Current service schedule to Morgan Hill and Gilroy will be reevaluated prior to addition of increased service. Requirements Partner JPB contributions for station improvements, level boarding, extended platforms and service enhancements for Caltrain Modernization 2.0 must be secured prior to allocation of Santa Clara County s contribution. VTA Compete Streets reporting requirements will be required for capital projects. All collateral material will be required to display a 2016 Measure B logo. Page 1 of 1 May 2, 2017

94 11.b Proposed Highway Interchanges Program Guidelines Definition from Resolution No To fund highway projects throughout the valley that will provide congestion relief, improved highway operations and freeway access, noise abatement, roadway connection overcrossings, and deploy advanced technology through Intelligent Transportation Systems (ITS). Candidate Projects are set forth in Attachment B. Total Funding $750 million in 2017 dollars. Distribution VTA Board of Directors will allocate funding on a 2 year cycle. Funds will be distributed through two programs: capital projects and noise abatement. Funds will be available on a reimbursement basis. Implementation VTA staff will work with local agency staff to identify and prioritize projects in the Highway Interchange Program Candidate List on 2016 Measure B Attachment B. The following criteria will be considered: o Project Readiness o Level of local contribution o Geographic consideration VTA staff will work with member agency staff to advance projects. Noise Abatement projects will be a separate category within the Highway Interchange Program. o Projects identified in the 2011 VTA Soundwall Study will receive higher consideration during Call for Projects. Funds will be available on a reimbursable basis. Agencies may submit invoices to VTA on a monthly, quarterly or annual basis. Invoices must be submitted within one year of the date posted on the contractor s invoice. The cost of each phase of a proposed Highway Interchanges project will be finalized with execution of agreements with VTA for project funding. Criteria Only VTA, Caltrans and Member Agencies can serve as an implementing agency. Only projects and programs currently listed on 2016 Measure B Attachment B are eligible. Page 1 of 2 May 3, 2017

95 11.b Requirements Projects require a minimum 10% non 2016 Measure B contribution. Reporting requirements will be detailed in agreements executed with VTA for project funding. All applications must include a delivery schedule. All projects must comply with VTA s Complete Streets Reporting Requirements. All collateral material will be required to display a 2016 Measure B logo. Page 2 of 2 May 3, 2017

96 11.b Proposed County Expressways Program Guideline Definition from Resolution No To fund Tier 1 improvement projects in the County s Expressway Plan in order to relieve congestion, improve safety and increase the effectiveness of the expressway system in the county. Candidate Projects are set forth in Attachment C. Total Funding $750 million in 2017 dollars. Distribution VTA Board of Directors will allocate funding on a 2 year cycle. As candidate projects move forward in readiness (ability to expend Measure funds), the County of Santa Clara will submit request for funding. Funds will be available on a reimbursement basis. Implementation VTA and the County of Santa Clara will execute a Master Agreement for the administration of the 2016 Measure B County Expressways Program. VTA staff will work with the County of Santa Clara to advance projects and maintain an implementation plan. County Expressway Policy Advisory Board (PAB) will recommend the prioritization of projects. Projects will be distributed into three categories: o Conventional Up to $10M o Major $10 $50M o Lawrence Grade Separations Funds will be available on a reimbursable basis. Agencies may submit invoices to VTA on a monthly, quarterly or annual basis. Criteria Only projects and programs currently listed on 2016 Measure B Attachment C are eligible. Project timelines will be developed based on the County Expressway PAB adopted criteria, which includes the following: o Project readiness o Complexity o Geographic balance and public impact o Timing of other funding sources Page 1 of 2 May 2, 2017

97 11.b o Additional factors Safety Public support Gap closures Requirements Program requires a 10% non 2016 Measure B contribution. Reporting requirements will be detailed in agreements executed with VTA. All projects must comply with VTA s Complete Streets Reporting Requirements. All collateral material will be required to display a 2016 Measure B logo. Page 2 of 2 May 2, 2017

98 11.b Proposed State Route 85 Corridor Program Guidelines Definition from Resolution No To fund new transit and congestion relief projects on SR 85, including a new transit lane from SR 87 in San Jose to U.S. 101 in Mountain View. Additionally this category will fund noise abatement along SR 85 and will provide funding to study transportation alternatives that include, but are not limited to, Bus Rapid Transit with infrastructure such as stations and access ramps. Light Rail Transit, and future transportation technologies that may be applicable. Total Funding $350 million in 2017 dollars. Distribution Revenues will be programmed on a 2 year cycle towards projects identified in SR 85 Corridor related studies. Implementation VTA staff is launching the SR 85 Transit Guideway Study (study) to identify the most effective transit and congestion relief projects on SR 85. Projects identified by the study will be candidates for funding. Noise abatement projects as identified in the SR 85 Noise Abatement Study may be funded prior to the completion of the study. Upon completion of the study, an implementation plan for SR 85 Corridor projects will be developed. SR 85 Policy Advisory Board will forward recommended projects to the VTA Board of Directors to be funded in the 2 year budget process. VTA will serve as implementing agency for all program projects. Requirements Capital projects require a 10% non 2016 Measure B contribution. VTA s Complete Streets reporting requirements will be required for all capital projects. All collateral material will be required to display a 2016 Measure B logo. Page 1 of 1 May 2, 2017

99 11.b Proposed Transit Operations Program Guidelines Definition from Resolution No The revenue from this program category will provide additional funds specifically for bus operations to serve vulnerable, underserved, and transit dependent populations throughout the county. The goals of the program category are to increase ridership, improve efficiency, enhance mobility services for seniors and disabled, and improve affordability for the underserved and vulnerable constituencies in the county. As VTA considers modifications to bus operations and routes to improve ridership and efficiencies, these funds may also be utilized to maintain and expand service to the most underserved and vulnerable populations. The funds may be used to increase core bus route service frequencies, extending hours of operations to early morning, evenings and weekends to improve mobility, safe access and affordability to residents that rely on bus service for critical transportation mobility needs. Attachment D describes the list of Candidate Projects and Programs. Total Funding $500 million in 2017 dollars. Distribution VTA Board of Directors will allocate funding on a 2 year cycle, based on a forecast of Measure B revenues. Future allocations will vary depending upon the amount of sales tax revenue collected. The Transit Operations Program Area funding will be allocated for the following four programs identified in 2016 Measure B Attachment D: o Enhance Frequent Core Bus Network by increasing core bus route service frequencies, and expanding or adding additional evening, late night and weekend service. o Expand mobility services and affordable fare programs for seniors, disabled, students and low income riders. o Support new/innovative transit service models to address first/last mile connections and transit services for the transit dependent, vulnerable populations and paratransit users. o Improve amenities at bus stops to increase safety, security and access with lighting and access improvements. The proposed allocations for the four categories are as follows: 2016 Measure B Transit Operations Program Area Area Funding Allocation (Proposed) Frequent Core Bus Network 73% Innovative Mobility Models & Programs 8% Fare Programs 15% Bus Stop Amenities 4% Page 1 of 2 May 2, 2017

100 11.b Implementation For FY18 & FY19 Budget Allocation: The Enhanced Frequent Core Bus Network will directly fund VTA s core bus network of services increasing core bus route service frequencies, and expanding or adding evening, late night and weekend service. The Fare Programs will fund the Transit Assistance Program (TAP) and reduced fares for youth. The Innovative Transit Models Program will support goals to address first/last mile connections. Strategies may include competitive grant programs to help fund services operated by local jurisdictions, utilize excess paratransit capacity, and other programs that encourage investments in local service. The Bus Stop Amenities Program will directly fund improvements at VTA s bus stops. The bus stop improvements will be prioritized based on VTA s Transit Passenger Environment Plan and ongoing maintenance needs. Criteria Only projects and programs currently listed on 2016 Measure B Attachment D are eligible. Requirements For potential competitive grants for the Innovative Transit Models Program: o Reporting requirements will be detailed in agreements executed with VTA for project funding. o All applications must include a delivery schedule. o Funds will be available on a reimbursement basis. VTA Complete Streets reporting requirements will be required for all capital improvements projects. All collateral material will be required to display a 2016 Measure B logo. Page 2 of 2 May 2, 2017

101 11.c Proposed 2016 Measure B Funding Allocation for FY18 FY19 All amounts in million $ Administrative Costs Program Area FY18 FY ANNUAL PROPORTION* Local Streets & Roads Transit Operations Enhance Core Network Innovative Transit Models 3.00 Expand Mobility & Affordable Fares Improve Amenities 1.30 Bicycle & Pedestrian Education/Encouragement 2.50 Capital Projects Planning Projects NEED/CAPACITY BASED BART Phase II Caltrain Grade Separation Caltrain Corridor Capacity SR 85 Corridor County Expressways Highway Interchanges *Allocation based upon the total allocation of Program Area divided by 30 years in the measure.

102 Proposed 2016 Measure B Local Streets and Roads Allocation 11.d Agency FY 18 FY19 Campbell $ 796,707 $ 796,707 Cupertino $ 1,137,397 $ 1,137,397 Gilroy $ 1,008,804 $ 1,008,804 Los Altos $ 571,706 $ 571,706 Los Altos Hills $ 158,763 $ 158,763 Los Gatos $ 580,633 $ 580,633 Milpitas $ 1,381,985 $ 1,381,985 Monte Sereno $ 65,686 $ 65,686 Morgan Hill $ 795,223 $ 795,223 Mountain View $ 1,483,017 $ 1,483,017 Palo Alto $ 1,273,986 $ 1,273,986 San Jose $ 19,347,691 $ 19,347,691 Santa Clara $ 2,302,604 $ 2,302,604 Saratoga $ 586,229 $ 586,229 Sunnyvale $ 2,817,569 $ 2,817,569 Santa Clara County $ 5,692,000 $ 5,692,000 Grand Total $ 40,000,000 $ 40,000,000

103 Proposed FY18 FY19 Education and Encourgement Allocation Allocation by Percentage of County Population Proposal $10k Minimum Allocation Proposal Agency Prior VERBS Annualized Agency Population % of Pop Yearly Allocation by % of Pop Agency Population Percentage $10k off the top to Cities Balance split based on remaining pop percentage Total Allocation per Year $ 709,440 Entire County 1,927,888 $ 1,250,000 Entire County 1,828,403 $ 850,000 Campbell Campbell 42, % $ 27, Campbell 42, % $ 10,000 $ 19,797 $ 29,797 Cupertino Cupertino 58, % $ 37, Cupertino 58, % $ 10,000 $ 27,049 $ 37,049 Gilroy Gilroy 55, % $ 35, Gilroy 55, % $ 10,000 $ 25,648 $ 35,648 Los Altos Los Altos 31, % $ 20, Los Altos 31, % $ 10,000 $ 14,576 $ 24,576 Los Altos Hills Los Altos Hills 8, % $ 5, Los Altos Hills % $ 10,000 $ $ 10,000 Los Gatos Los Gatos 31, % $ 20, Los Gatos 31, % $ 10,000 $ 14,586 $ 24,586 Milpitas Milpitas 75, % $ 48, Milpitas 75, % $ 10,000 $ 35,109 $ 45,109 Monte Sereno Monte Sereno 3, % $ 2, Monte Sereno % $ 10,000 $ $ 10,000 Morgan Hill Morgan Hill 43, % $ 28, Morgan Hill 43, % $ 10,000 $ 20,290 $ 30,290 Mountain View $ 125,000 Mountain View 77, % $ 50, Mountain View 77, % $ 10,000 $ 36,226 $ 46,226 Palo Alto Palo Alto 68, % $ 44, Palo Alto 68, % $ 10,000 $ 31,709 $ 41,709 San Jose $ 250,000 San Jose 1,042, % $ 675, San Jose 1,042, % $ 10,000 $ 484,456 $ 494,456 Santa Clara $ 125,000 Santa Clara 123, % $ 80, Santa Clara 123, % $ 10,000 $ 57,531 $ 67,531 Saratoga Saratoga 30, % $ 19, Saratoga 30, % $ 10,000 $ 14,048 $ 24,048 Sunnyvale Sunnyvale 148, % $ 96, Sunnyvale 148, % $ 10,000 $ 68,976 $ 78,976 County Balance of Countywide Education/ 0 $ 209,440 County 87, % $ 56, Encouragement 0.00% $ 250,000 $ 250,000 $ 1,250,000 $ 400,000 $ 1,250,000 $10k Minimum Allocation Proposal: $250k for County, includes countywide coordination $10k minimum per city The 13 cities that would ve received over $10k by straight population percentage formula (of all jurisdictions) then split the remaining $850k by population percentage. 11.e

104 Proposed 2016 Measure B Highway Interchanges Program FY18 and FY19 Projects and Allocation* 11.f Route Project Title SR 17 Southbound/Hamilton Ave. Off-Ramp Widening SR 17/San Tomas Expressway Interim Improvements Total Project Cost ($M) City Non-Measure B Funds Implementing Agency FY 18 Q1 Q2 Q3 Q4 $ 2 Campbell Campbell $1.0 $ 1 Campbell Campbell $1.0 FY 19 Q1 Q2 Q3 Q4 280 I-280/Wolfe Rd. Interchange Improvements $ 70 Cupertino $1.70 VTA $2.0 $ I-280 Northbound: Second Exit Lane to Foothill Expressway $ 3 Cupertino, Los Altos $0.70 VTA $0.5 $ US 101/Buena Vista Ave. Interchange Improvements US 101/SR 25 Interchange (ENV/PS&E) Calaveras Boulevard Widening - Near-term improvements $ 35 Gilroy VTA $1.0 $ 180 Gilroy $5.90 VTA $2.0 $ 81 Milpitas VTA $ US 101 Interchanges Improvements: San Antonio Rd. to Charleston Rd./Rengstorff Ave. $ 35 Palo Alto, Mt View US 101/Zanker Rd./Skyport Dr./Fourth St. Interchange Improvements $ 138 San Jose $11.00 VTA $3.0 VTA $ US 101/Mabury Rd./Taylor St. Interchange Construction Charcot Overcrossing US 101/Blossom Hill Rd. Interchange Improvements US 101/Old Oakland Rd. Interchange Improvements I-280/Winchester Blvd. Interchange Improvements $ 74 San Jose $8.00 San Jose $2.0 $ 48 San Jose $6.00 San Jose $6.0 $6.0 $ 28 San Jose $5.00 San Jose $4.0 $ 25 San Jose $5.00 San Jose $1.0 $ 90 San Jose $3.00 VTA $ US 101 Southbound/Trimble Rd./De La Cruz Blvd./Central Expwy. Interchange Improvements $ 50 San Jose $0.90 VTA $ SR 87 Technology-based Corridor Improvements $ 40 San Jose $0.23 VTA $ Double Lane Southbound US 101 off-ramp to Southbound SR 87 $ 2 San Jose $0.20 VTA $1.5 SR 237/Mathilda Ave. and US 101/Mathilda Ave. Interchange Improvement $ 42 Sunnyvale $8.00 VTA $4.0 $30.0 All Noise Abatement Program (Countywide) $ 50 Countywide VTA $4.0 All Hwy. Transportation Operations System/Freeway Performance Initiative Phase 1 & 2 $ 54 Countywide VTA $1.0 Assume Measure B expenditures can start July Schedules may be delayed if Measure B funds come later. CONST DESIGN and ROW ENVIR. Planning FY 18 = $61.0 FY 19 = $ year total = $87.0 * The cost of each phase of a proposed Highway Interchanges project will be finalized with execution of agreements with VTA for project funding.

105 TAC Agenda Item #14 CAC Agenda Item #11 PAC Agenda Item # Measure B Program Area Guidelines May Committees

106 2016 Measure B Program Areas Program Category Local Streets and Roads BART Phase II Bicycle/Pedestrian Caltrain Grade Separation Caltrain Corridor Capacity Improvements Highway Interchanges County Expressways SR 85 Corridor Transit Operations Amount (in 2017 Dollars) $1.2 Billion $1.5 Billion* $250 Million $700 Million $314 Million $750 Million $750 Million $350 Million $500 Million *Capped at 25% of Program Tax Revenue 2

107 Local Streets & Roads Proposed Modifications & Allocations Maintenance of Effort o Consistency with SB1 One-time advance Annual allocation based on 1/30th of $1.2 billion (estimated program revenue) o FY18: $40 million o FY19: $40 million 3

108 BART Phase II Proposed Modifications & Allocations 10% non-2016 Measure B contribution Complete Streets reporting requirements FY18 & FY19: $0 4

109 Bicycle/Pedestrian Proposed Modifications & Allocations Education/Encouragement 15% of allocation Formula-based Annual allocation based on 1/30th of $250 million (estimated program revenue) o FY18: $8.3 million o FY19: $8.3 million 5

110 Caltrain Grade Separation Proposed Modifications & Allocations Will fund most costeffective alternatives FY18 & FY19: $7 million 6

111 Caltrain Corridor Capacity Improvements Proposed Modifications & Allocations May include projects (including station improvements) prior to the completion of the PCEP FY18 & FY19: $2 million 7

112 Highway Interchanges Proposed Modifications & Allocations No proposed modifications FY18 & FY19: $87 million 8

113 County Expressways Proposed Modifications & Allocations 10% non-2016 Measure B contribution program-wide FY18 & FY19: $50 million 9

114 SR 85 Corridor Proposed Modifications & Allocations Implementation Plan for SR85 Improvements FY18 & FY19: $12 million 10

115 Transit Operations Proposed Modifications & Allocations Annual allocation based on 1/30th of $500 million (estimated program revenue) o FY18: $16.6 million o FY19: $16.6 million 11

116 Transit Operations Proposed Modifications & Allocations Enhance Frequent Core Network 73% of allocation $12 mil per FY Innovative mobility models 8% of allocation $1.5 mil per FY Expand mobility options & fares for most vulnerable population 15% of allocation $2.5 mil per FY Improve Bus Stop Amenities 4% of allocation $650,000 per FY 12

117 Next Steps Guidelines May Committees June 1, 2017 Board Approval Implementation Execute Agreements Establish Competitive Program criteria, process & schedules 13

118 Questions? 14

119 12 Date: April 27, 2017 Current Meeting: May 10, 2017 Board Meeting: N/A BOARD MEMORANDUM TO: THROUGH: FROM: SUBJECT: Santa Clara Valley Transportation Authority Citizens Advisory Committee General Manager, Nuria I. Fernandez Chief Financial Officer, Raj Srinath FY 2018 and 2019 Proposed Biennial Budget FOR INFORMATION ONLY BACKGROUND: The Fiscal Years 2018 and 2019 Proposed Biennial Budget was presented to the Board of Directors at an April 21, 2017 Board Workshop. In addition, five community meetings were scheduled to inform the public and obtain additional input. The Advisory Committee meetings in May provide staff the opportunity to present an overview of the Proposed Budget to members of the Advisory Committees, respond to questions, and gather input for items requiring additional research. DISCUSSION: The basic assumptions used in the development of the Proposed Budget are outlined below. The details of the proposal may be found in the Fiscal Years 2018 and 2019 Proposed Budget Booklet (Attachment A). The Proposed Budget is a working document, and will continue to be revised based on direction from the Board, stakeholder input, updated revenue projections, identification of additional savings opportunities and other changes. The Final Proposed Budget will be presented to the Board for adoption on June 1, BASIC ASSUMPTIONS: VTA Transit Fund-Operating Budget Service The Proposed Budget assumes an overall service increase of 6.4% from FY 2017 projections in FY 2018, and an increase of 2.0% over FY 2018 budgeted levels in FY These

120 12 service changes are detailed in the proposed FY 2018-FY 2019 Transit Service Plan scheduled to be presented for approval at the May 4, 2017 Board meeting. Ridership Ridership forecasts for this two year budget cycle are primarily driven by the increase in service referenced above. The FY 2018 and FY 2019 ridership projections reflect a 2.2% and 5.2% increase, respectively. Revenues Fares The Proposed Budget includes the following changes in fares: Base Fare increase of 25% phased over two years starting January 2018 o Adult Single Ride fare increase from $2.00 to $2.25 in January 2018 o Adult Single Ride fare increase from $2.25 to $2.50 in January 2019 o All associated fares increase proportionately except paratransit which would remain unchanged Youth Fare decreased and aligned with Senior/Disabled Fare Free VTA-to VTA transfers-valid for 90 minutes of travel, Clipper only Change in Eco Pass pricing structure Elimination of Community Bus Fare type Sales Tax Based Revenues To determine the growth assumption for FY 2018 and FY 2019, staff reviewed various scenarios including Optimistic, Most Likely, and Conservative. The Proposed Budget reflects projected growth of 2.4% and 2.0% in FY 2018 and FY 2019, respectively. These growth rates are between the Most Likely and Conservative scenarios Measure A Sales Tax-Operating Assistance The Proposed Budget assumes an increase in the 2000 Measure A sales tax revenue to be used towards funding VTA Transit operations from 18.5% to 20.75%. This additional funding will be used to partially offset the cost of enhanced light rail service Measure B - Transit Operations 2016 Measure B, a one-half cent countywide sales tax that began collection on April 1, 2017, includes a program category for Transit Operations. Candidate projects and programs included in the ballot language for this category include: Expand mobility services and affordable fare programs for seniors, disabled, students and low-income riders; Enhance Frequent Core Bus Network; Improve amenities at bus stops to increase safety, security and access; and, Support new innovative transit service models to address first/last mile connections. Page 2 of 5

121 12 The Proposed VTA Transit Fund Operating Budget includes funding from the Transit Operations program category for expanded/new evening, late-night and weekend bus service included in the proposed FY 2018-FY 2019 Transit Service Plan, and the youth and lowincome related fare proposals. A total of $14.1M and $14.5M funding from 2016 Measure B for FY 2018 and FY 2019, respectively is proposed. Funding from 2016 Measure B for the improvement of amenities at bus stops and innovative transit service models is included in the Proposed VTA Transit Fund Capital Budget State Transit Assistance (STA) The Proposed Budget assumes VTA s portion of STA, which is derived from the state sales tax on diesel fuel, at $10.3 million per year. Federal Formula Grants The Proposed Budget includes $3.8M and $3.9M for FY 2018 and FY 2019, respectively for the Americans with Disabilities Act (ADA) set-aside. The remainder of projected formula grants are directed towards the capital program. Financing Proceeds The Proposed Budget includes $18.5M and $22.1M for FY 2018 and FY 2019, respectively for financing proceeds from a Commercial Paper program to fund the cost of parts for the mid-life overhaul of light rail vehicles. Expenditures Labor Cost Contracts for all bargaining units are currently scheduled to expire during the next biennial budget cycle. Bargaining Unit Expiration Date AFSCME 1 June 19, 2019 ATU 2 September 30, 2018 SEIU 3 August 5, 2018 TAEA 4 June 30, 2019 The Proposed Budget reflects the following assumptions related to labor costs: Reflects wage increases included in currently negotiated contracts. Budgeting of additional costs, if any, for subsequent contracts will be addressed upon contract ratification by the Board of Directors. Pension and Retiree Health contributions based on latest available actuarial information. 1 American Federation of State, County, and Municipal Employees, Local Amalgamated Transit Union, Local Service Employees International Union, Local Transportation Authority Engineers and Architects Association, Local 21 Page 3 of 5

122 12 et addition of 39 positions. The vast majority (30) of these additional positions are Light Rail Operators in support of the enhanced service included in the FY 2018-FY 2019 Transit Service Plan. Fuel The Proposed Budget assumes $2.25 per gallon (including taxes and fees) for diesel in FY 2018 and $2.50 in FY Paratransit The bus service changes in the FY 2018-FY 2019 Transit Service Plan include earlier and later daily service and additional weekend service on several routes. At full implementation, this expanded service is expected to increase paratransit trips by 4% over current levels. A general growth in trips of 3% per year is also anticipated. The Proposed Budget is based on an assumption of 26,300 more trips in FY 2018 (5.2%) and an increase of 25,665 trips in FY 2019 (4.8%). Due to a change in VTA s paratransit contract from a broker model to a directly contracted model, paratransit fares are now reported separately as revenues. Previously fare revenues were reported as a net against the paratransit expense. Caltrain VTA s current contribution to Caltrain is approximately 43% of the net operating expenses, based on a ridership formula agreed to by the partner agencies. The Proposed Budget reflects VTA s contribution at approximately $9.0 million for each fiscal year. Transfer to Capital Reserve The Proposed Budget reflects an annual transfer of $5.0M to the Capital Reserve. Capital Programs VTA Transit The FY 2018 and FY 2019 VTA Transit Capital Program looks to maintain capital infrastructure and keep VTA assets in a state of good repair. The two-year combined program of $174.8 million utilizes $112.1 million of grants or other outside funding and requires a total local funding commitment of $62.7 million, a portion of which may be funded through a Commercial Paper program. Project funding for the two-year period is appropriated in FY 2018 in order to facilitate administration of the program Measure A Transit Improvement Program The FY 2018 & FY 2019 Proposed 2000 Measure A Program Fund Capital Budget includes additional appropriation of $701.7M of which $503.5M is funded from 2000 Measure A sales tax revenues with the remainder coming from other sources. Project funding for the two-year period is appropriated in FY 2018 in order to facilitate administration of the program. VTP (Valley Transportation Plan) Highway Improvement Program The VTP Highway Program appropriation for the next two-year period includes projects related to express lanes, freeway and highway improvements, local streets and roads, and bicycle/pedestrian improvements. The total additional appropriation for the identified VTP Page 4 of 5

123 12 Highway Improvement Program Capital Projects for FY 2018 and FY 2019 is $79.6 million. Project funding for the two-year period is appropriated in FY 2018 in order to facilitate administration of the program. Miscellaneous Programs 2008 Measure B - BART Operating Sales Tax Program 2008 Measure B revenues are dedicated to provide funding for the BART Silicon Valley Extension operating, maintenance and capital reserve costs. The Proposed Budget assumes the extension will begin operations at the end of Measure B Program On November 8, 2016, the voters of Santa Clara County approved 2016 Measure B, a 30-year, one-half cent countywide sales and use tax to enhance transit, highways, expressways and active transportation (bicycles, pedestrians and complete streets). The 2016 Measure B ballot identified nine program categories. Guidelines for each of the categories are currently under development with the final draft guidelines scheduled to be presented to the Board of Directors in May. The FY 2018 and FY 2019 Proposed 2016 Measure B Program Fund Budget represents the anticipated program revenues and expenditures over the next two fiscal years. Funding for the two-year period is appropriated in FY 2018 in order to facilitate administration of the program. Similar to a capital budget, appropriation for the program will not expire at the end of the fiscal year and will be carried forward until the 2016 Measure B Program is completed. The anticipated expenditures include the reimbursement of $1.65M to the VTA Transit Fund for payment made to the Registrar of Voters for 2016 Measure B s share of costs of the November 8, 2016 General Election. NEXT STEPS: In accordance with the VTA Administrative Code, the proposed budget, containing appropriations for both operations and capital, will be reviewed by the Administration & Finance Committee at their May 18, 2017 meeting and the Final Proposed Budget will be submitted to the Board for adoption on June 1, Prepared By: Carol Lawson, Fiscal Resources Manager Memo No Page 5 of 5

124 12.1 April 2017 Proposed Budget Fiscal Year 2018 and Fiscal Year 2019

125 12.1 Search Instructions Items in this PDF version of the FY 2018 and FY 2019 Proposed Budget can be found using one of the following 4 methods: 1) Hyperlinks in the Table of Contents. 2) Hyperlinks in the Bookmarks Panel 3) Find Function (Ctrl+F). 4) Search function (Shft+Ctrl+F). Please note: in some versions of Adobe Acrobat, it may be necessary to click on the Arrange Windows icon in the Search dialogue box for a side-by-side view of the Search dialogue box and the document text.

126 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET TABLE OF CONTENTS Introduction... 1 VTA TRANSIT Overview... 3 Major Budget Assumptions... 4 Comparison of Revenues and Expenses Sources and Uses of Funds Summary Year Projection Capital Program Overview Schedule of FY 2018 & FY 2019 Appropriation Descriptions of FY 2018 & FY 2019 Appropriated Projects MEASURE A TRANSIT IMPROVEMENT PROGRAM Program Overview Comparison of Revenues and Expenses Sources and Uses of Funds Summary Capital Program Overview Schedule of FY 2018 & FY 2019 Appropriation Descriptions of FY 2018 & FY 2019 Appropriated Projects CONGESTION MANAGEMENT PROGRAM Program Overview Comparison of Revenues and Expenses Sources and Uses of Funds Summary Member Assessments VTP HIGHWAY IMPROVEMENT PROGRAM Program Overview Schedule of FY 2018 & FY 2019 Appropriation Descriptions of FY 2018 & FY 2019 Appropriated Projects JOINT DEVELOPMENT PROGRAM Program Overview Comparison of Revenues and Expenses i

127 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Sources and Uses of Funds Summary Schedule of FY 2018 & FY 2019 Appropriation Description of FY 2018 & FY 2019 Appropriated Project SILICON VALLEY EXPRESS LANES PROGRAM Program Overview Comparison of Revenues and Expenses Sources and Uses of Funds Summary Designated Reserves MEASURE B BART OPERATING SALES TAX PROGRAM Program Overview Comparison of Revenues and Expenses Sources and Uses of Funds Summary MEASURE B PROGRAM Program Overview Projected Revenues Proposed Funding Allocation APPENDICES Job Classifications and Pay Range VTA Transit Fund Unrestricted Net Assets/Reserves ii

128 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Introduction This document presents the Santa Clara Valley Transportation Authority s (VTA) Proposed Biennial Budget for Fiscal Years 2018 and The FY 2018 and FY 2019 Proposed Budget represents the quantification of planned activities and initiatives over the next two-year period and lays the groundwork to support VTA s Strategic Plan Core Values of Safety, Integrity, Quality, Sustainability, Diversity and Accountability. One significant endeavor reflected in the Proposed Budget is the inauguration of BART service into Santa Clara County, anticipated at the end of Construction of Phase I of VTA s BART Silicon Valley project, the 10-mile extension to Milpitas and Berryessa, is nearing completion and system testing is underway. In order to connect passengers to the two new BART stations in the county, as well as increase overall ridership and improve cost-effectiveness, VTA is in the process of completely redesigning its transit network. The bus portion of the redesign includes reallocation of service from low-ridership areas to high-ridership areas; increased morning, midday, evening and weekend service on several routes; and re-routed or new routes to serve the Milpitas and Berryessa BART stations. The light rail portion of the redesign features introduction of a new line from Alum Rock to Mountain View which will provide a direct connection from the Milpitas BART station to the employment areas in North Mountain View, Sunnyvale, Santa Clara and San Jose. Another component of the Proposed Budget is the continuation and advancement of VTA s capital programs. As mentioned earlier, the first phase of the BART to Silicon Valley project is scheduled to begin service in late Efforts are also underway for engineering, right-of-way acquisition and utility relocation activities for Phase II of the project, the remaining six miles of the extension through Downtown San Jose to Santa Clara. In addition, the Proposed Budget includes funding for state of good repair projects including replacement of buses which have exceeded their useful life, rail replacement and rehabilitation, overhead catenary system rehabilitation, and continuation of the mid-life overhaul of the light rail fleet. The document is divided into sections which cover the eight separate Funds for which a budget is to be adopted: VTA Transit 2000 Measure A Transit Improvement Program Congestion Management Program VTP Highway Improvement Program Joint Development Program Silicon Valley Express Lanes Program 2008 Measure B - BART Operating Sales Tax Program 2016 Measure B Program Each section contains an overview of the program and various schedules and narratives which detail the specific budget proposal. 1

129 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET The table below summarizes the Proposed Budget amount for each program. Fiscal Years 2018 and 2019 Proposed Budget Summary 1 (Dollars in Thousands) Fund Fiscal Year 2018 Fiscal Year 2019 VTA Transit-Operating 475, ,195 VTA Transit-Capital 174, Measure A Transit Improvement Program-Operating 100, , Measure A Transit Improvement Program-Capital 701, Congestion Management Program-Operating 5,954 5,815 VTP Highway Improvement Program-Capital 79, Joint Development Program-Operating Joint Development Program-Capital 2, Silicon Valley Express Lanes Program-Operating 1,974 1, Measure B - BART Operating Sales Tax Program-Operating 14,670 24, Measure B Program 294, Includes transfers between funds 2 Total Appropriation for FY 2018 and FY 2019 reflected in FY

130 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET VTA TRANSIT

131 VTA FY 2018 & FY 2019 PROPOSED BUDGET 12.1

132 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET VTA Transit Overview Countywide public transit service in Santa Clara County began on June 6, 1972, with the creation by state legislation, of the Santa Clara County Transit District. This organization initiated countywide bus service, expanded the bus fleet, and developed an initial light rail system. Following the merger in 1995 with the Santa Clara County Congestion Management Agency, the name of the organization was changed to the Santa Clara Valley Transportation Authority (VTA) effective January 1, VTA is an independent public agency responsible for bus and light rail operation, regional commuter and inter-city rail service, Americans with Disabilities Act (ADA) paratransit service, congestion management, specific highway improvement projects, and countywide transportation planning. The VTA Transit Fund encompasses the operation and development of transit activities for VTA, which includes bus and light rail operation, regional commuter and inter-city rail service, and ADA paratransit service. The VTA Transit Proposed Budget is a quantification of VTA s service and capital project delivery plan for the two-year period. As such, the budget incorporates the projected impact of service changes and improvements from the Annual Transit Plan as well as the impact of new programs and initiatives. The charts below illustrate the sources and uses of funds for the VTA Transit Operating Budget for FY 2018 and FY 2019 Where the Dollars Come From 2000 Measure A Sales Tax- Operating Assistance 9% TDA 21% 2016 Measure B - Transit Operations 3% STA 2% Financing Proceeds 4% Other 7% Fares 9% Where the Dollars Go Contracted Services 8% Debt Service 4% Other 1% Transfer for Capital 1% 1976 Half-Cent Sales Tax 45% Service Delivery 86% 3

133 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET VTA Transit Major Budget Assumptions Service Levels VTA updates its transit service plan every two years to coincide with the budget development typically making small adjustments based on rider input and performance data. However, for the FY 2018 and FY 2019 transit service plan, VTA is completely redesigning its transit network in order to connect to BART at the Milpitas and Berryessa Stations, increase overall ridership and improve cost-effectiveness. The redesign was framed in terms of balancing the competing goals of ridership and coverage. Because of the enormity of the redesign, VTA used a community-based planning process which included multiple stages of community outreach, and numerous avenues for input. The Draft Transit Service Plan, which focused on increasing the allocation of bus services to ridershippurposed routes and decreasing services to coverage-purposed routes, was released in early January An additional round of community engagement was undertaken in January and February in order to receive input on potential improvements to the plan. Following review of over 3,000 public comments, staff developed a proposed final plan that made 34 bus-related changes to the draft plan including retaining service to some areas where discontinuations were previously proposed. The proposed Final Transit Service Plan for FY 2018 and FY 2019 was released in early April and is scheduled to be considered by the VTA Board of Directors in May. The bus portion of the redesign includes reallocation of service from low-ridership areas to highridership areas; increased morning, midday, evening and weekend service on several routes; and re-routed or new routes to serve the Milpitas and Berryessa BART stations. Overall, the bus redesign results in a 7% increase in service hours from the projected FY 2017 service level. The light rail service enhancements listed below will result in a 25% increase in annual light rail service hours upon full implementation. Introduction of a new line from Alum Rock to Mountain View. The existing Winchester to Mountain View line is modified to a Winchester to Old Ironsides line. The service is improved from the current 15 minute peak hour frequencies to 15 minute frequencies all day. The Commuter Express, which currently operates three trips each peak period between Santa Teresa and Baypointe, will operate from Santa Teresa to St. James Station and be expanded to six trains each peak period. Implementation of the approved plan for both bus and light rail would be coordinated with the commencement of BART service to Santa Clara County, currently scheduled for the end of The table on the following page shows a comparison of total service miles and hours for bus and light rail for FY 2016 to FY

134 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Service Levels (In Thousands) FY 2016 Actual FY 2017 Projected Actual FY 2018 Proposed Budget FY 2019 Proposed Budget Service Miles Bus 19,440 19,632 20,734 20,970 Light Rail Train 2,263 2,262 2,560 2,779 Total Service Miles 21,703 21,895 23,294 23,750 % change 0.9% 6.4% 2.0% Service Hours Bus 1,484 1,499 1,583 1,601 Light Rail Train Total Service Hours 1,637 1,652 1,759 1,793 % change 1.0% 6.4% 1.9% Note: Totals and percentages may not be precise due to independent rounding Ridership Currently, transit ridership is on a downward trend across the nation. FY 2016 VTA system ridership was 2.4% lower than FY 2015 and through February, FY 2017 system ridership is down 12.2% from FY 2016 levels. The primary goal of the changes in the FY 2018 and FY 2019 Final Transit Plan discussed above is to improve VTA bus and light rail ridership. Ridership projections for this two year budget cycle are primarily driven by the enhancements to the bus and light rail service plan described above. The development of a more extensive frequent core network and new connecting services to BART are anticipated to increase bus ridership by 8-10%. Light rail ridership is estimated to increase by 15-20% from the new additional services. These projected increases will be phased-in over time as existing riders develop new travel patterns and new riders start using the services. The projected ridership for FY 2018 and FY 2019 incorporates both the phase-in of the increases and timing of service implementation. Ridership (In Thousands) Category FY 2016 Actual FY 2017 Projected Actual % Var FY 2018 Proposed Budget % Var FY 2019 Proposed Budget % Var Bus 32,195 28, % 29, % 30, % Light Rail 10,723 9, % 9, % 10, % Total 42,918 37, % 38, % 40, % Note: Totals and percentages may not be precise due to independent rounding 5

135 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Revenues Fares VTA has not had a fare increase since Since then, the cost of providing service has increased while the share of operating expenses recovered from fares (Fare Box Recovery Ratio) has declined. In early January, staff began a review of VTA s fare policy focusing on six major areas: an increase in the base fares, Youth fares, free VTA-to-VTA transfers, fares for Low Income riders, Community Bus fares, and Eco Pass fares. As part of the review, VTA staff presented the fare policy concepts at nine community meetings across the county in coordination with the outreach efforts conducted for the redesign of VTA s bus network. In addition to the community meetings, VTA conducted an online survey to receive additional public input. The Proposed Budget includes a 25% increase phased over two years starting January 1, The adult single ride fare would increase from $2.00 to $2.25 on January 1, 2018 and to $2.50 on January 1, All associated fares would increase proportionately with the exception of paratransit fares which would remain unchanged. In addition, the proposed fare structure includes the following: A decrease in Youth Fares Free VTA-to-VTA transfers for 90 minutes of travel, Clipper only Continuation of the Transit Assistance Program (TAP) for low income riders Elimination of the Community Bus Fare type Restructuring of the Eco Pass program into three categories based on type of participant A table of proposed fares is included below: Current vs. Proposed Fixed-Route Fares Effective January 1, 2018 and January 1, 2019 Fare Type Current Fare Proposed Fare January 1, 2018 Proposed Fare January 1, 2019 ADULT Single Ride Cash $2.00 $2.25 $2.50 Community Bus $1.25 n/a n/a Light Rail Excursion Pass $4.00 $4.50 $5.00 Day Pass $6.00 $7.00 $7.50 Day Pass Token (bag of 5) $15.00 $17.50 $18.75 Express Cash $4.00 $4.50 $5.00 Express Day Pass $12.00 $13.50 $15.00 Monthly Pass $70.00 $80.00 $90.00 Annual Pass $ $ $ Express Monthly Pass $ $ $ Express Annual Pass $1, $1, $1,

136 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Fare Type Current Fare Proposed Fare January 1, 2018 Proposed Fare January 1, 2019 YOUTH Single Ride Cash $1.75 $1.00 $1.25 Community Bus $0.75 n/a n/a Light Rail Excursion Pass $3.50 $2.00 $2.50 Day Pass $5.00 $3.00 $3.75 Day Pass Token (bag of 5) $12.50 $7.50 $9.50 Monthly Pass $45.00 $30.00 $35.00 Summer Blast Pass $75.00 $60.00 $70.00 Annual Pass $ $ $ SENIOR/DISABLED Single Ride Cash $1.00 $1.00 $1.25 Community Bus $0.50 n/a n/a Light Rail Excursion Pass $2.00 $2.00 $2.50 Day Pass $2.50 $3.00 $3.75 Monthly Pass $25.00 $30.00 $35.00 Annual Pass $ $ $ Current vs. Proposed Paratransit Fares Effective January 1, 2018 and January 1, 2019 Service Type Current Fare Proposed Fare January 1, 2018 Proposed Fare January 1, 2019 One-Way Trip (2x Adult Base Fare) $4.00 $4.00 $4.00 Same Day Trip (4x one-way trip) $16.00 $16.00 $16.00 Extended Service Area (4x one-way trip) $16.00 $16.00 $16.00 Sales Tax Based Revenues Sales tax based revenues include 1976 half-cent local sales tax, a quarter-cent state sales tax (from Transportation Development Act or TDA), and 2000 Measure A Sales Tax-Operating Assistance which is derived from 2000 Measure A half-cent sales tax revenues. The majority of VTA s proposed operating revenues are generated from these sales tax measures, which are driven by the local economy. During FY 2016, sales tax receipts from 1976 half-cent sales tax increased 3.1%, following an increase of 6.9% in FY Year-to-date growth in FY 2017 has been more modest with year over year increases of 1.7% for each of the first two quarters. 7

137 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET To determine the growth assumption for FY 2018 and FY 2019, staff reviewed various scenarios including Optimistic, Most Likely, and Conservative. The Proposed Budget reflects projected growth of 2.4% and 2.0% in FY 2018 and FY 2019, respectively. These growth rates are between the Most Likely and Conservative scenarios Measure A Sales Tax-Operating Assistance The Proposed Budget assumes an increase in the 2000 Measure A sales tax revenue to be used towards funding VTA Transit operations from 18.5% to 20.75%. This additional funding will be used to partially offset the cost of enhanced light rail service described on page Measure B Transit Operations 2016 Measure B, discussed in more detail on page 67, includes a program category for Transit Operations. Candidate projects and programs included in the ballot language for this category include: Expand mobility services and affordable fare programs for seniors, disabled, students and low-income riders; Enhance Frequent Core Bus Network; Improve amenities at bus stops to increase safety, security and access; and, Support new innovative transit service models to address first/last mile connections. The Proposed VTA Transit Fund Operating Budget includes funding from the Transit Operations program category for the expanded/new evening, late-night and weekend bus service described on page 4, and the youth and low-income related fare proposals described on page 6. A total of $14.1M and $14.5M funding from 2016 Measure B for FY 2018 and FY 2019, respectively is proposed. Funding from 2016 Measure B for the improvement of amenities at bus stops and innovative transit service models is included in the Proposed VTA Transit Fund Capital Budget discussed on page 15. State Transit Assistance (STA) Beginning in FY 2012, the state diesel sales tax rate was increased to 6.75% in conjunction with a corresponding drop in the per-gallon diesel fuel excise tax to ensure that consumers felt no impact at the pump. High-speed rail/transit bond debt service has first call on the revenues generated by the diesel sales tax. Any remaining revenues are split 75% to STA and 25% to intercity rail and other miscellaneous state transit programs. The FY 2018 and FY 2019 Proposed Budget assumes a VTA share of $10.3 million per year. Federal Operating Grants President Obama signed the FAST (Fixing America s Surface Transportation) Act into law on December 4, For the most part, FAST continues the programs put in place by its predecessor MAP-21 (Moving Ahead for Progress in the 21 st Century). FAST made the following changes to FTA (Federal Transit Administration) funding programs: Reinstated the discretionary bus program, with a small set-aside for Low and No Emission buses; Capped the FTA share of the Capital Investment Program at 60%; This includes New Starts, Small Starts and Core Capacity at 60%; and Phases in increased Buy-America Requirements up to 70% by

138 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET The FAST Act Federal funding programs from which VTA receives transit funding and their primary uses are as follows: Section Urbanized Area Funds: This is the largest and most flexible FTA formula fund. This fund encompasses eligible capital activities including preventive maintenance and the set aside for support of Americans with Disabilities Act of 1990 (ADA) paratransit services. Section State of Good Repair Funding: This program replaces the old Section 5309 Fixed Guideway program and is restricted to rail system uses. Section High Intensity Bus, Section Bus and Bus Facilities Funding, and Surface Transportation Program (STP): These funds are available for bus and bus facility projects. Only VTA s Express Bus-related services are eligible for Section 5337 bus funding. The FY 2018 and FY 2019 Proposed Budget includes $3.8M and $3.9M, respectively for the Americans with Disabilities Act (ADA) set-aside. The remainder of projected formula grants are directed towards the capital program. Financing Proceeds The Proposed Budget includes $18.5M and $22.1M for FY 2018 and FY 2019, respectively for financing proceeds from a Commercial Paper program to fund the cost of parts for the mid-life overhaul of light rail vehicles. Expenses Labor Cost Contracts for all bargaining units are currently scheduled to expire during the next biennial budget cycle. Bargaining Unit Expiration Date AFSCME 1 June 19, 2019 ATU 2 September 30, 2018 SEIU 3 August 5, 2018 TAEA 4 June 30, 2019 The Proposed Budget reflects the following assumptions related to labor costs: Reflects wage increases included in currently negotiated contracts. Budgeting of additional costs, if any, for subsequent contracts will be addressed upon contract ratification by the Board of Directors. Pension and Retiree Health contributions based on latest available actuarial information. 1 American Federation of State, County, and Municipal Employees, Local Amalgamated Transit Union, Local Service Employees International Union, Local Transportation Authority Engineers and Architects Association, Local 21 9

139 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Net addition of 39 positions. The vast majority (30) of these additional positions are Light Rail Operators in support of the service changes described on page 4. The table below shows the approved positions by division for FY 2016 through FY Positions by Division Division FY16 1 FY17 2 FY18 FY19 Business Services Engineering & Transp. Infrastructure Development Finance & Budget Government & Public Relations Office of the Chief of Staff Office of the General Counsel Office of the General Manager Operations 1,828 1,846 1,876 1,876 Planning & Program Development System Safety & Security Total 3 2,336 2,351 2,388 2,390 Fuel The Proposed Budget assumes $2.25 per gallon for diesel in FY 2018 and $2.50 in FY 2019, including taxes and fees. Assumptions include 20.7 million miles of service for FY 2018, and 21.0 million miles of service for FY Annual usage is estimated at approximately 4.8 million gallons in both FY 2018 and FY The actual average cost per gallon of diesel including taxes, was $1.74 for FY 2016 and $1.90 for FY 2017 through March. Paratransit The bus service changes in the FY 2018-FY 2019 Transit Service Plan described above include earlier and later daily service and additional weekend service on several routes. At full implementation, this expanded service is expected to increase paratransit trips by 4% over current levels. A general growth in trips of 3% per year is also anticipated. The Proposed Budget is based on an assumption of 26,300 more trips in FY 2018 (5.2%) and an increase of 25,665 trips in FY 2019 (4.8%). Due to a change in VTA s paratransit contract from a broker model to a directly contracted model, paratransit fares are now reported separately as revenues. Previously fare revenues were reported as a net against the paratransit expense. The table on the following page details the anticipated paratransit trips, expenses and offsetting fare revenues for the next two-year period. 1 As of 6/30/16 adjusted for subsequent reorganizations 2 Projected 6/30/17 3 Does not include Long-Term Leave, Student Intern or Extra-Help positions 10

140 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Paratransit Trips, Fares & Expenses (In Thousands) FY 2018 Proposed Budget FY 2019 Proposed Budget Client Trips Fares-Paratransit $2,328 $2,723 Paratransit Expense Primary Provider-Fixed $3,234 $3,365 Primary Provider-Revenue Vehicle Hour 13,320 13,795 Supplemental Service 2,291 2,891 Eligibility 894 1,244 Vehicle Maintenance 1,000 1,050 Fuel 1,553 1,579 Facilities/Maint/Utilities Fare Processing Software/Hardware VTA Staff Services 1,400 1,400 Total Paratransit Expense $24,671 $26,338 Note: Totals may not be precise due to independent rounding Caltrain VTA s current contribution to Caltrain is approximately 43% of the net operating expenses, based on a ridership formula agreed to by the partner agencies. The Proposed Budget reflects VTA s contribution at approximately $9.0 million for each fiscal year. Transfer to Capital Reserve The VTA Transit Fund does not have a dedicated local revenue source for capital expenditures. Any capital enhancements, improvements or state of good repair not covered by grants or other outside sources must be funded from the same sources as the Operating Budget, primarily sales tax based revenues. The FY 2018 and FY 2019 Proposed Budget reflects a transfer of $5.0M to the Capital Reserve in each year. 11

141 Line Category VTA FY 2018 & FY 2019 PROPOSED BUDGET VTA Transit Comparison of Revenues and Expenses (Dollars in Thousands) FY16 Actual FY17 Current Budget 1 FY17 Projected Actual 2 FY18 Proposed Budget Variance from FY17 Projection % Var FY19 Proposed Budget Variance from FY18 Budget 1 Fares-Transit 37,663 41,599 33,564 35,742 2, % 40,568 4, % 2 Fares-Paratransit ,234 2,328 1, % 2, % Half-Cent Sales Tax 205, , , ,343 5, % 219,650 4, % 4 TDA 98, ,912 99, ,211 1, % 103,235 2, % 5 Measure A Sales Tax-Oper. Asst. 37,954 40,021 38,814 44,684 5, % 45, % Measure B Transit Operations ,060 14,060 N/A 14, % 7 STA 13,632 14,765 8,965 10,300 1, % 10, % 8 Federal Operating Grants 4,105 3,704 4,092 3,831 (261) -6.4% 3, % 9 State Operating Grants 1,984 1,420 2,186 1,373 (813) -37.2% 960 (413) -30.1% 10 Investment Earnings 2,580 1,425 3,250 3, % 4, % 11 Advertising Income 2,515 2,258 2,522 2, % 2, % 12 Measure A Repayment Obligation 15,007 15,247 15,247 15, % 15,499 (97) -0.6% 13 Other Income 2,937 2,556 4,539 4,173 (365) -8.1% 2,420 (1,754) -42.0% 14 Transfer to Capital Reserve 4 (13,635) (21,907) N/A 0 0 N/A 15 Financing Proceeds ,450 18,450 N/A 22,130 3, % 16 Total Revenue 408, , , ,474 49, % 488,907 15, % 17 Labor Cost 300, , , ,982 19, % 339,746 9, % 18 Materials & Supplies 22,949 19,374 27,913 38,191 10, % 42,351 4, % 19 Security 11,420 15,119 12,619 17,409 4, % 17, % 20 Professional & Special Services 5,829 7,187 6,975 8,715 1, % 7,215 (1,501) -17.2% 21 Other Services 7,748 7,584 7,591 10,488 2, % 10, % 22 Fuel 7,830 12,517 8,354 10,716 2, % 12,022 1, % 23 Traction Power 4,241 3,898 4,198 5,312 1, % 6, % 24 Tires 2,068 2,266 2,266 2, % 2, % 25 Utilities 3,105 2,895 3,195 3, % 3, % 26 Insurance 4,923 5,752 6,012 6, % 6, % 27 Data Processing 3,916 4,746 4,746 5, % 4,987 (35) -0.7% 28 Office Expense (1) -0.1% 412 (13) -2.9% 29 Communications 1,562 1,606 1,606 1, % 1, % 30 Employee Related Expense 1,048 1,031 1,023 1, % 1, % 31 Leases & Rents % % 32 Miscellaneous % 860 (19) -2.1% 33 Reimbursements (36,374) (38,769) (31,536) (36,555) (5,019) 15.9% (37,332) (777) 2.1% 34 Subtotal Operating Expense 342, , , ,679 38, % 421,928 15, % 35 Paratransit 3 19,805 26,184 20,627 24,671 4, % 26,338 1, % 36 Caltrain 8,414 8,390 8,390 8, % 8, % 37 Altamont Corridor Express 4,838 5,323 4,888 5, % 5, % 38 Highway 17 Express % % 39 Monterey-San Jose % % 40 Contribution to Other Agencies 890 2,624 2, (1,626) -62.0% 1, % 41 Debt Service 21,351 21,641 21,641 21,581 (61) -0.3% 22, % 42 Subtotal Other Expense 55,603 64,581 58,539 61,799 3, % 64,267 2, % 43 Operating and Other Expense 398, , , ,478 42, % 486,195 17, % 44 Transfer to Capital Reserve ,000 5,000 N/A 5, % 45 Contingency ,000 2,000 N/A 2, % 46 Total Expense/Contingency/Cap Trsf 398, , , ,478 49, % 493,195 17, % 46 Operating Balance 10,319 (15,611) (2,047) (2,004) (4,288) Note: Totals and percentages may not be precise due to independent rounding 12.1 % Var 1 Reflects Adopted Budget approved by the Board on June 4, 2015 and $4.0M, $2.5M, and $5.3M augmentations approved by the Board on October 1, 2015, October 6, 2016, and November 3, 2016, respectively 2 Projection as of March 27, Beginning in November 2016 Paratransit Fares are reported separately. Previously these revenues were reported as a net against paratransit expense 4 Beginning in FY18 Transfer to Capital Reserve is reflected as an expenses instead of a reduction of revenues 12

142 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET VTA Transit Sources and Uses of Funds Summary (Dollars in Thousands) Line Description FY16 Actual FY17 Projected Actual 1 FY18 Proposed Budget FY19 Proposed Budget Operating Balance 1 Total Operating Revenues 408, , , ,907 2 Total Operating Expenses (398,361) (426,361) (475,478) (493,195) 3 Operating Balance 10,319 (2,047) (2,004) (4,288) Operating Balance Transfers 4 Operating Balance (Line 3) 10,319 (2,047) (2,004) (4,288) 5 Transfers From/(To) Sales Tax Stabilization Fund 0 2, Transfers From/(To) Operating Reserve (1,210) 0 2,004 4,288 7 Transfers From/(To) Capital Reserve (9,109) Balance to Undesignated Reserves Operating Reserve 9 Beginning Operating Reserve 62,937 64,147 64,147 62, Transfer From/(To) Operating Balance 1,210 0 (2,004) (4,288) 11 Ending Operating Reserve 64,147 64,147 62,143 57, Operating Reserve % % 13.5% 12.6% 11.3% 3 Note: Totals and percentages may not be precise due to independent rounding 1 Projection as of March 27, Line 11 divided by subsequent fiscal year budgeted Operating Expenses (Line 2) 3 Based on projected FY20 Operating Expenses 13

143 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET 5-Year Projection In order to provide a broader picture beyond the two-year budget horizon, the table below shows projected Revenues, Expenses, and Operating Balance through FY 2022 (in millions). FY18 FY19 FY20 FY21 FY22 Revenues $473.5 $488.9 $503.5 $504.6 $517.9 Expenses Operating Balance ($2.0) ($4.3) ($6.9) ($11.6) ($16.3) Revenue growth during the FY20-FY22 projection period reflects sales tax related revenue growth using a most likely scenario and 2.5% inflation on most other sources. Expenditure growth is also based on an average inflation rate of 3.5%. As with all forecasts, there is uncertainty regarding the revenue and expenditure estimates above. In particular sales tax based revenues may exceed or fall below expectations based on changes in economic or non-economic conditions. Additionally, actual expenditures could differ from projections based on final service levels implemented; volatility in fuel, pension, and healthcare costs; and impacts of negotiated contracts. 14

144 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET VTA Transit Capital Program Overview The FY 2018 and FY 2019 Proposed VTA Transit Capital Program strives to maintain capital infrastructure and keep VTA assets in a state of good repair. Eighty-nine projects were submitted for consideration. Each project was reviewed and rated based upon the project s overall merit using a previously developed evaluation criteria scale. The projects were then ranked based on their overall score. Once the projects are ranked, the Capital Improvement Program Oversight Committee (CIPOC), which is composed of the Division Chiefs and Directors, matches the VTA Transit requested projects with available levels of grant and local funding in order to develop the Proposed Capital Budget. The FY 2018 and FY 2019 Proposed Budget creates 35 new VTA Transit Capital projects and augments 13 existing projects. The Proposed Budget also includes $4.0 million to fund capital contingency. It utilizes $112.1 million of grants or other outside funding and requires a total new VTA Transit Fund commitment of $62.7 million. Any shortfall in anticipated grant funding could require either the use of additional VTA Transit funds if alternate sources are not available, or a reduction in project scope. The $174.8 million VTA Transit Capital appropriation reflects the planned capital spending to be incurred or committed in the next two years. Project funding for the two-year period is appropriated in FY 2018 in order to facilitate administration of the program. The table on the following pages lists each project by category and general funding source. The subsequent pages provide a brief description of each project, identified funding sources for the FY 2018 and FY 2019 requested appropriation, potential operating cost impacts, estimated total project cost, and anticipated completion date. Capital project appropriations, with the exception of the VTA Transit Capital Contingency, do not expire at the end of the fiscal year and are carried forward until the project is completed. Appropriation for the VTA Transit Capital Contingency expires at the end of the two-year budget cycle. Capital carryover is defined as appropriation that is unspent at the end of the fiscal year. The local share of capital carryover is specifically earmarked for previously appropriated capital needs in VTA s Comprehensive Annual Financial Report. 15

145 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET VTA Transit Schedule of FY 2018 & FY 2019 Appropriation (Dollars in Thousands) FY 2018 & FY 2019 Funding Source Project Federal State Other VTA Transit Total 1. 40' Bus Procurement FY18 44, ,000 55, ' Articulated Bus Procurement 6, ,736 8, Automatic Passenger Counters (APC) ,835 1, Paratransit Fleet Program FY18 4, ,049 5, Upgrade Fault Monitoring System on Light Rail Vehicles 2, ,819 Revenue Vehicles & Equipment Total 57, ,184 73, Non-Revenue Vehicle Procurement FY ,300 1,300 Non-Revenue Vehicles Total ,300 1, Cerone Emergency Generator Replacement ,260 1, Facilities and Equipment Emergency Repair FY Facilities Maintenance Equipment Program FY ,770 1, HVAC Replacement Program FY ,944 1, Painting Management Program FY Paving Management Program FY ,800 1, Procure and Install Wheel Truing Machine ,210 3, Roofing Management Program FY ,300 1, SCADA and TVM Network Separation ,565 3, Sustainability Program FY Operating Facilities & Equipment Total ,099 17, Bridge Repair/Hamilton Structural Stabilization Guadalupe Overhead Catenary System Rehab 6, ,615 8, Rail Replacement and Rehabilitation FY18 13, ,420 17, Roadway Protection System for Light Rail 1, , Track Intrusion Abatement FY18 1, , Upgrade Highway Rail Grade Crossing Control Equip. 4, ,092 5,460 Light Rail Way, Power & Signal Total 27, ,995 34, Bus Stop Improvement Program FY , , Diridon Transportation Facilities Master Plan 0 0 3,500 1,500 5, North San Jose Transportation Improvements 0 0 3, , Pedestrian Swing Gates Replacement 2, , Shelters at LR Stations--Tasman, Orchard, Component 0 0 1, , Transit Center Park & Ride Upgrades FY Vasona Corridor Pedestrian Back Gates 1, ,600 Passenger Facilities Total 4, ,300 3,000 17, Emergency IT Infrastructure Replacement Integrated Land Use-Transportation Model Mobile Network Upgrade

146 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET FY 2018 & FY 2019 Funding Source Project Federal State Other VTA Transit Total 33. Office 365 Deployment PCI and EMV Compliance Enhancements ,500 1, SCADA Control Center and System Replacement 3, , SCADA Middleware Replacement 1, , Survey and Data Collection Program Virtual Transit Ride Visualization APP VTA Big Data Analytics Program VTA Gigabit Network Project Information Sys & Technology Total 4, ,471 9, Bus-on-Shoulder Feasibility Study Caltrain Capital Annual Local Match ,000 10, Capital Contingency 0 0 2,000 2,000 4, Condition Assessment for Rail & Bus Infrastructure Express Bus Service Plan Facilities Assessments Innovative First/Last-Mile Services Program 0 0 3, , North Bayshore Transportation Study 0 0 1, , VA Pilot Smart Shuttle ,365 Miscellaneous Total ,245 13,637 21,550 Grand Total 93, ,940 62, ,833 Note: Totals may not be precise due to independent rounding 17

147 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET VTA Transit Capital Program Descriptions of FY 2018 & FY 2019 Appropriated Projects Revenue Vehicles & Equipment Bus Procurement FY18 Purchase up to 138 forty-foot buses in order to retire existing buses which are beyond their designed economic life. This initial appropriation will provide funding for the first 62 replacement buses. Funding for the remaining 76 buses will be requested as an augmentation in the FY 2020 Capital Budget. Funding Source FY18 & FY19 Federal - Sec 5307 $44,000,000 VTA Transit 11,000,000 Total $55,000,000 Operating Cost Impact: Operating savings estimated at $25 thousand per bus, per year. Estimated Total Project Cost: $125.0 million Anticipated Completion Date: December Articulated Bus Procurement This project augmentation will provide the balance needed for the planned procurement of articulated buses. The purchase will allow the retirement of older buses which are beyond their designed economic life. Funding Source FY18 & FY19 Federal - Sec 5307 $1,038,744 Federal - Sec ,905,256 VTA Transit 1,736,000 Total $8,680,000 Operating Cost Impact: Operating savings estimated at $60 thousand per bus, per year. Estimated Total Project Cost: $60.7 million Anticipated Completion Date: May Automated Passenger Counters (APC) This project will fund the purchase and installation of the latest Iris Automatic Passenger Counters (APC) equipment that are compatible with VTA's ridership processing tools. Funding Source FY18 & FY19 VTA Transit $1,835,000 18

148 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Operating Cost Impact: Annual savings from operational efficiencies and reduced preventive maintenance/repairs estimated at $20,000. Additional annual maintenance estimated at $8,000 after warranty period expires. Estimated Total Project Cost: $1.8 million Anticipated Completion Date: June Paratransit Fleet Program FY18 This project is to procure new paratransit vehicles to replace vehicles that have exceeded their useful life. Planned procurement to include 99 Dodge Caravans and 5 El Dorado National Aerolite 210 vehicles including associated equipment and graphics. Funding Source FY18 & FY19 Federal - Sec 5307 $4,195,200 VTA Transit 1,048,800 Total $5,244,000 Operating Cost Impact: Projected maintenance savings for the first year vehicles are in service due to warranty. Estimated Total Project Cost: $5.2 million Anticipated Completion Date: June Upgrade Fault Monitoring System on Light Rail Vehicles The project will upgrade the existing Fault Monitoring System (FMS) Network equipment on the Light Rail Vehicles. The existing FMS is no longer supported by the original equipment manufacturer. Funding Source FY18 & FY19 Federal - Sec 5307 $2,255,200 VTA Transit 563,800 Total $2,819,000 Operating Cost Impact: Annual costs associated with maintenance/repair of the equipment is estimated at $30,000. Estimated Total Project Cost: $2.8 million Anticipated Completion Date: June 2020 Non-Revenue Vehicles 6. Non-Revenue Vehicle Procurement FY18 This ongoing program schedules the acquisition of Non-Revenue Vehicles to replace existing units that have high mileage, have had a history of mechanical failures, or have been decommissioned because of mechanical failures which were not cost-effective to repair. This project also includes an option to replace retired vehicles with vehicles that are hybrid/electric and higher mile per gallon (MPG) when possible per our Sustainable Fleet Policy. 19

149 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Funding Source FY18 & FY19 VTA Transit $1,300,000 Operating Cost Impact: Projected maintenance savings for the first year vehicles are in service due to warranty. Estimated Total Project Cost: $1.3 million Anticipated Completion Date: February 2018 Operating Facilities & Equipment 7. Cerone Emergency Generator Repair This project will remove and replace two 500kw Liquid Propane Gas (LPG) generators with one 1200kw diesel generator. The LPG generators were installed in 1978 and are at the end of their useful life. The project includes purchase and installation of the new generator and plumbing tie-in to the diesel tanks at the fuel island. Tie-in to the diesel tanks will extend the runtime and more than double the available fuel capacity of the generators in a large emergency. Additional project requirements include the decommissioning, removal, and disposal of the existing generators; building restoration after removal; and inspection and permitting by the Bay Area Air Quality Management District (BAAQMD). The requested budget augmentation will fund this project through completion. Funding Source FY18 & FY19 VTA Transit $1,260,000 Operating Cost Impact: There is no anticipated impact on operating costs. Estimated Total Project Cost: $2.5 million Anticipated Completion Date: September Facilities and Equipment Emergency Repair FY18 This project allows VTA to expedite unplanned repairs that may be required at facilities or to equipment that is essential to normal or safe operations. These funds are administered by the Chief Operating Officer and are not used for regular anticipated maintenance activities. Funding Source FY18 & FY19 VTA Transit $750,000 Operating Cost Impact: There is no anticipated impact on operating costs. Estimated Total Project Cost: $750 thousand Anticipated Completion Date: June Facility Maintenance Equipment Program FY18 This project allows for the scheduled replacement of equipment that has reached the end of its useful life. It allows VTA to proactively keep its equipment in a state of good repair, while reducing repair expenses and downtime. FY 2018 and FY 2019 scheduled replacements include forklifts, bus lifts, cranes, compressors, floor scrubbers, and parts carousels. 20

150 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Funding Source FY18 & FY19 VTA Transit $1,770,000 Operating Cost Impact: Potential maintenance savings associated with keeping equipment in a state of good repair. Estimated Total Project Cost: $1.8 million Anticipated Completion Date: June Heating, Ventilation and Air Conditioning (HVAC) Replacement Program FY18 The HVAC Replacement Program is a long-term plan intended to take advantage of technological advances in HVAC equipment and stay ahead of major system failures that impact operations. This 10-year plan identifies specific HVAC equipment replacements annually based on the end of useful life calculations. Funding Source FY18 & FY19 VTA Transit $1,944,000 Operating Cost Impact: Utility savings anticipated from replacing electric heat pumps with natural gas fueled heat pumps. Estimated Total Project Cost: $1.9 million Anticipated Completion Date: June Painting Management Program FY18 The Painting Management Program is an ongoing, comprehensive long-term preventive maintenance program that protects and extends the useful life of all facilities maintained by VTA. This program provides painting maintenance and repair to the exteriors and interiors of all VTA operational, administrative, and passenger facilities (excluding bus stops). Painting maintenance and repair includes repairs and repainting of worn areas as needed and includes scheduled repainting based on a 10-year plan. Funding Source FY18 & FY19 VTA Transit $800,000 Operating Cost Impact: There is no anticipated impact on operating costs. Estimated Total Project Cost: $800 thousand Anticipated Completion Date: June Paving Management Program FY18 This ongoing program provides pavement maintenance and repair to all VTA operational, administrative, passenger, equipment, and Park and Ride facilities. Maintenance and repair includes slurry sealing on a five to eight-year cycle for light-duty lots and grinding with overlays for bus divisions and heavy vehicle roadways on a five-year schedule. Funding Source FY18 & FY19 VTA Transit $1,800,000 21

151 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Operating Cost Impact: Potential maintenance savings associated with keeping pavement in a state of good repair. Estimated Total Project Cost: $1.8 million Anticipated Completion Date: June Procure and Install Wheel Truing Machine Procure and install new Hegenscheidt rail wheel truing machine at the Guadalupe Light Rail facility. The requested budget augmentation is anticipated to fund this project through completion. Funding Source FY18 & FY19 VTA Transit $3,210,000 Operating Cost Impact: Eventually the existing machine will be retired thereby reducing repair cost associated with an older machine. In addition, the new machine will be less labor intensive. There will be ongoing expenditures, the existing maintenance contract will need to be amended to account for the new machine. Estimated Total Project Cost: $5.8 million Anticipated Completion Date: August Roofing Management Program FY18 This is an ongoing, comprehensive program to maximize the useful life and integrity of VTA facilities. This program includes the proactive scheduling of roofing rehabilitation prior to major failure, as well as unscheduled repairs, seasonal cleaning, annual roof inspections, and emergency leak response. Funding Source FY18 & FY19 VTA Transit $1,300,000 Operating Cost Impact: Potential maintenance savings associated with keeping roofing in a state of good repair. Estimated Total Project Cost: $1.3 million Anticipated Completion Date: June SCADA and TVM Network Separation This project will separate both logically and physically, payment data (TVM) communications currently transmitted through the Supervisory Control and Data Acquisition (SCADA) network to an independent clipper network in the 65 communication cabinets on the Light Rail System. The requested budget augmentation is anticipated to fund this project through completion. Funding Source FY18 & FY19 VTA Transit $3,565,000 Operating Cost Impact: There is no anticipated impact on operating costs. Estimated Total Project Cost: $4.7 million Anticipated Completion Date: December

152 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET 16. Sustainability Program FY18 This appropriation supports the continuation of the VTA Board approved Sustainability Program which includes energy reduction, solid waste reduction, hazardous waste reduction, recycling programs, water conservation, and solar energy projects. Funding Source FY18 & FY19 VTA Transit $700,000 Operating Cost Impact: Some operating savings anticipated from reductions in the use of potable water and the consumption of energy. Estimated Total Project Cost: $700 thousand Anticipated Completion Date: June 2019 Light Rail Way, Power & Signal 17. Bridge Repairs & Hamilton Structure Stabilization Implement corrective actions such as soil stabilization and drainage modifications to stabilize the Hamilton Bridge Structure. The requested budget augmentation will fund this project through completion. Funding Source FY18 & FY19 Federal - Sec 5307 $320,000 VTA Transit 80,000 Total $400,000 Operating Cost Impact: Potential maintenance savings associated with keeping bridges and structures in a state of good repair. Estimated Total Project Cost: $3.2 million Anticipated Completion Date: September Guadalupe Overhead Catenary System Rehabilitation Third Phase of the Overhead Catenary System (OCS) Rehabilitation covering from North First Street and Rosemary to Old Ironsides including rehabilitation or replacement of contact wires, section insulators and under bridge supports. Project scope also includes the addition of safety light indicators within the maintenance shops at the Guadalupe Light Rail facility. Funding Source FY18 & FY19 Federal - Sec 5337 $6,460,000 VTA Transit 1,615,000 Total $8,075,000 Operating Cost Impact: Potential maintenance savings associated with keeping the assets in a state of good repair. Estimated Total Project Cost: $8.1 million Anticipated Completion Date: June

153 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET 19. Rail Rehabilitation and Replacement FY18 This is part of an on-going program to ensure that the Light Rail track infrastructure remains safe, reliable and in an enhanced state of good repair. Previous projects have completed or are undertaking the rehabilitation and replacement of ties, rail, concrete panels, special track work, switches and embedded rail. The scope for this request includes further rehabilitation and replacement of various track components at various locations including special track work switches, heel blocks, timber ties and defective/worn-out rail. The majority of work will involve the repair and replacement of the Younger half-grand, including the installation of two new crossovers to accommodate single tracking operations during construction. Funding Source FY18 & FY19 Federal - Sec 5337 $3,667,559 Federal - Sec ,012,441 VTA Transit 3,420,000 Total $17,100,000 Operating Cost Impact: Potential maintenance savings associated with keeping the assets in a state of good repair. Estimated Total Project Cost: $17.1 million Anticipated Completion Date: December Roadway Protection System for Light Rail The project will explore Roadway Worker Protection System technologies to be implemented at VTA Light Rail System to meet regulatory requirements. Funding Source FY18 & FY19 Federal - Sec 5307 $1,551,200 VTA Transit 387,800 Total $1,939,000 Operating Cost Impact: Some minor maintenance cost associated with maintaining the system on regular basis is anticipated. Estimated Total Project Cost: $1.9 million Anticipated Completion Date: December Track Intrusion Abatement FY18 This project will take steps to prevent track intrusion into light rail trackway at intersections and locations currently subject to trespassing. Planned improvements include installation of fencing, barriers, signage, flashing signs, and pavement markings at locations identified and approved by VTA s Safety Committee. Funding Source FY18 & FY19 Federal - Sec 5307 $1,600,000 VTA Transit 400,000 Total $2,000,000 24

154 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Operating Cost Impact: There is no anticipated impact on operating costs. Estimated Total Project Cost: $2.0 million Anticipated Completion Date: June Upgrade Highway Rail Grade Crossing Control Equipment This project will upgrade rail grade crossing equipment at various crossings on Tasman West and Guadalupe Line through redesign of crossings, procurement and installation of new equipment. Funding Source FY18 & FY19 Federal- Sec 5307 $4,368,000 VTA Transit 1,092,000 Total $5,460,000 Operating Cost Impact: Annual costs associated with maintenance/repair of the equipment is estimated at $10,000. Estimated Total Project Cost: $5.5 million Anticipated Completion Date: June 2019 Passenger Facilities 23. Bus Stop Improvement Program FY18 The project represents an ongoing program that will upgrade bus stops throughout the VTA system at bus stops to increase safety, security and access. The project would provide funds for system wide improvements at approximately 100 bus stops, including new and replacement shelters, lighting, access improvements including safe sidewalk connections, passenger information signs and security. Funding Source FY18 & FY19 Other Measure B $1,300,000 Other - Developer Contribution 700,000 Total $2,000,000 Operating Cost Impact: The maintenance costs for new shelters will be mitigated by the advertising revenue. The actual costs will not be known until the advertising contract is complete but is currently estimated at $5,000 per year to maintain 100 new shelters. Estimated Total Project Cost: $2.0 million Anticipated Completion Date: June Diridon Transportation Facilities Master Plan This project will identify a preferred alternative and initiate preliminary design and environmental review for the Diridon Station Multimodal Transportation Center. 25

155 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Funding Source FY18 & FY19 Other - High Speed Rail $2,000,000 Other - Caltrain/Capitol Corridor/ACE 1,500,000 VTA Transit 1,500,000 Total $5,000,000 Operating Cost Impact: If facility is constructed, maintenance expenses will occur that the various operating entities will have to fund. Separate efforts are ongoing as to how the longterm governance and operation of the center will be accomplished and funded. Estimated Total Project Cost: $6.0 million Anticipated Completion Date: June North San Jose Transportation Improvements This project will plan, design and construct eligible transit projects in North San Jose using developer fees collected by the City of San Jose. Funding Source FY18 & FY19 Other - Developer Fees $3,000,000 Operating Cost Impact: Impact depends on actual project selected but ongoing operational and maintenance costs are expected to be minimal. Estimated Total Project Cost: $6.0 million Anticipated Completion Date: December Pedestrian Swing Gates Replacement This project will replace spring-hinge pedestrian swing gates at various pedestrian crossing locations along VTA's light rail system. The existing swing gates will be replaced with new and improved gravity-hinged gates that are safer and more reliable. The requested budget augmentation will fund this project through completion. Funding Source FY18 & FY19 Federal - Sec 5337 $2,720,000 VTA Transit 680,000 Total $3,400,000 Operating Cost Impact: There is no anticipated impact on operating costs. Estimated Total Project Cost: $4.9 million Anticipated Completion Date: June Shelters at LR Stations Tasman, Orchard, Component This project will procure and install shelters for passenger use at the Tasman, Orchard, and Component light rail stations in the northbound direction. Funding Source FY18 & FY19 Other - Developer Contribution $1,800,000 26

156 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Operating Cost Impact: Anticipate minor increase in ongoing expenditures for routine maintenance. Estimated Total Project Cost: $1.8 million Anticipated Completion Date: June Transit Center Park and Ride Upgrades FY18 This project will provide for refurbishment and repair of maintenance issues at transit center and park and ride lots throughout the VTA service area. These include major concrete damage and pavement failures at transit centers, sidewalks and park and ride lots. It will also include pavement striping, signage, tree roots and tree removal, lighting and mitigating trip hazards in the pedestrian areas. Funding Source FY18 & FY19 VTA Transit $500,000 Operating Cost Impact: Potential maintenance savings associated with keeping assets in a state of good repair. Estimated Total Project Cost: $500 thousand Anticipated Completion Date: June Vasona Corridor Pedestrian Back Gates This project will install pedestrian gates at several Vasona Light Rail corridor crossings. The scope will include the installation of automatic pedestrian gates, swing gates and railings, minor civil improvements and related signal modifications as necessary. The requested budget augmentation will fund this project through completion. Funding Source FY18 & FY19 Federal - Sec 5337 $1,280,000 VTA Transit 320,000 Total $1,600,000 Operating Cost Impact: There is no anticipated impact on operating costs. Estimated Total Project Cost: $2.9 million Anticipated Completion Date: June 2019 Information Systems & Technology 30. Emergency IT Infrastructure Replacement This project allows VTA to address the need for replacement of critical technology infrastructure as they arise over the two-year timeframe. These funds are administered by the Chief Technology Officer and are not used for regular anticipated maintenance activities. Funding Source FY18 & FY19 VTA Transit $240,000 27

157 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Operating Cost Impact: Potential impact on operating cost is dependent on nature of item replaced. Estimated Total Project Cost: $300 thousand Anticipated Completion Date: June Integrated Land Use-Transportation Model This project augmentation will fund the completion of Phase II of development of the Integrated Land Use-Transportation Model which provides VTA with a powerful analytical tool to estimate how major transportation improvements influence land values and the redistribution of housing units and jobs by industry. This allows the quantification of benefits that cannot typically be captured in traditional benefit/cost models which can be used to provide a fuller picture of the benefits provided by transit projects. Funding Source FY18 & FY19 Other - Congestion Management Program $75,000 Operating Cost Impact: There is no anticipated impact on operating costs. Estimated Total Project Cost: $150 thousand Anticipated Completion Date: June Mobile Network Upgrade This project will upgrade the mobile routers in 130 buses and non-revenue vehicles. The older routers were installed in approximately 2009 and the manufacturer announced the endof-life support for them in March The new mobile routers will help ensure that operational communications, such as RTI and passenger internet access remains operational and serviceable on vehicles with the older mobile routers. This project will also replace and upgrade the equipment necessary to provide passenger Wi-Fi for the revenue and nonrevenue vehicles with newer mobile routers Funding Source FY18 & FY19 VTA Transit $550,000 Operating Cost Impact: No operating impact anticipated. Older models will be taken out of service and the service costs transferred to the new equipment. Estimated Total Project Cost: $550 thousand Anticipated Completion Date: June Office 365 Deployment This project will purchase and implement a new subscription-based Microsoft Office product, Office 365. This cloud-based service is designed to meet VTA s enterprise infrastructure s need for robust security, reliability, mobility, and user productivity. VTA users will be enabled to collaborate and communicate securely across many devices from anywhere. Office 365 also provides VTA users with unlimited cloud based storage for , SharePoint and one TB/storage per user with OneDrive. Funding Source FY18 & FY19 VTA Transit $350,000 28

158 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Operating Cost Impact: Annual maintenance estimated at $175,000 is expected to be offset somewhat by elimination of older data servers resulting from transition to a cloud-based system. Estimated Total Project Cost: $350 thousand Anticipated Completion Date: August PCI and EMV Compliance Enhancements This project will enhance the current Ticket Vending Machine Environment with a PCI DSS (Payment Card Industry Data Security Standard) and EMV (Europay, MasterCard, AMEX and Visa) Compliant Solution that will enable VTA to accept payments via Chip Cards, Contactless cards, Google Pay, Apple Pay and future mobile wallets. Funding Source FY18 & FY19 VTA Transit $1,500,000 Operating Cost Impact: There is no anticipated impact on operating costs. Estimated Total Project Cost: $1.5 million Anticipated Completion Date: June SCADA Control Center and System Replacement This project will provide for upgrades to the Supervisory Control and Data Acquisition (SCADA) System hardware and software, and design Control and Data Center facility expansion. The SCADA system provides safety critical controls for operation of the light rail system, and includes the supervisory consoles, displays, servers, and other infrastructure at the Guadalupe Light Rail Operating Division such as the operations control center, way power & signal, and emergency operations center. The existing control and data center, along with the associated hardware and software, are at the end of their useful lives. Much of the software and hardware items are already obsolete or will be obsolete and unsupported in the near future. Funding Source FY18 & FY19 Federal - Sec 5337 $3,015,200 VTA Transit 753,800 Total $3,769,000 Operating Cost Impact: Additional operating impact, if any will be determined once this initial design phase is completed. Estimated Total Project Cost: $39.9 million Anticipated Completion Date: January SCADA Middleware Replacement This project will replace existing obsolete middleware software with updated software to ensure compatibility with other upgraded SCADA software and SCADA components. 29

159 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Funding Source FY18 & FY19 Federal - Sec 5337 $1,150,400 VTA Transit 287,600 Total $1,438,000 Operating Cost Impact: There is no anticipated impact on operating costs. Estimated Total Project Cost: $1.4 million Anticipated Completion Date: June Survey and Data Collection Program This project will provide funding to implement a variety of transportation surveys that will provide critical information on travel patterns and behavior from residents and workers in Santa Clara County. Anticipated activities include transit surveys to collect data in support of before and after studies for major capital project implementations; existing and new transit customer attitudinal and perception surveys; and surveys of employers, residences and major activity centers for trip generation and mode share data for Congestion Management and Transit Planning analysis. Funding Source FY18 & FY19 Other - Congestion Management Program $220,000 VTA Transit 220,000 Total $440,000 Operating Cost Impact: There is no anticipated impact on operating costs. Estimated Total Project Cost: $500 thousand Anticipated Completion Date: June Virtual Transit Ride Visualization APP Complete and improve the VTA virtual transit ride app. This final phase of funding will complete the transit videos on all VTA transit routes and improve various aspects of the existing app. Funding Source FY18 & FY19 Other - Congestion Management Program $50,000 VTA Transit 50,000 Total $100,000 Operating Cost Impact: Ongoing annual expenditures estimated at $7,200. Estimated Total Project Cost: $150 thousand Anticipated Completion Date: June VTA Big Data Analytics Program This project will provide funding to implement a Big Data Analytics Program at VTA, including purchase of large transportation data sets (AirSage and Strava Metro), development of analytical tools to be used for data analysis, visualization and reporting. 30

160 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Funding Source FY18 & FY19 Other - Congestion Management Program $50,000 VTA Transit 50,000 Total $100,000 Operating Cost Impact: There is no anticipated impact on operating costs. Estimated Total Project Cost: $100 thousand Anticipated Completion Date: June VTA Gigabit Network Project This project will provide optic fiber installation, network equipment and materials necessary to support the increased needs for new passenger, fare payments, CCTV, audio, passenger information and other systems being installed throughout VTA's WAN and MAN. It is intended to provide upgrades to address potential capacity needs and security improvements needed to secure and distribute CCTV (closed circuit television) and the other systems installed and planned for the transit facilities. The requested augmentation will fund this project through completion. Funding Source FY18 & FY19 VTA Transit $470,000 Operating Cost Impact: Some operating savings are anticipated. Similar projects completed have resulted in cost avoidance of high speed data connections of over $50,000/ year. Estimated Total Project Cost: $1.4 million Anticipated Completion Date: June 2019 Miscellaneous 41. Bus-on-Shoulder Feasibility Study This study will assess the feasibility of operating VTA Express buses on Santa Clara County freeway shoulders in order to achieve transit travel time reductions by bypassing congestion. Planned study efforts include the following: a peer review of bus-on-shoulder operations (focused on California), a regulatory review of bus-on-shoulder operations, an assessment of the corridor travel markets, an assessment of the technical operations requirements, estimates of operating/maintenance/capital costs, and development of an implementation plan. Funding Source FY18 & FY19 State - Planning Grant $288,000 VTA Transit 72,000 Total $360,000 31

161 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Operating Cost Impact: The project could identify opportunities to operate VTA Express service on freeway shoulders, which could achieve operational cost savings through travel time reductions. Estimated Total Project Cost: $360 thousand Anticipated Completion Date: June Caltrain Capital - Annual Local Match The local capital funds that Caltrain receives from VTA and the other two funding partners (San Mateo County Transit District and the City and County of San Francisco) are used to match state and federal grant funds that are provided to Caltrain. Most Caltrain capital projects are funded with a combination of federal and local funds, and the costs are split equally by the three member agencies. Funding Source FY18 & FY19 VTA Transit $10,000,000 Operating Cost Impact: There is no direct operating costs impact to VTA. Operating and maintenance costs for Caltrain service are incorporated in the Caltrain operating subsidy. Estimated Total Project Cost: $10.0 million Anticipated Completion Date: June Capital Contingency This appropriation is a placeholder for projects that are not currently anticipated but may arise during the two-year budget cycle. These funds are administered by the Capital Improvement Program Oversight Committee, which is composed of VTA s Chief Officers, Directors and a representative of the General Manager. Unused Capital Contingency appropriation expires at the end of the two-year budget cycle. Funding Source FY18 & FY19 Other - TBD $2,000,000 VTA Transit 2,000,000 Total $4,000,000 Operating Cost Impact: Potential impact on operating cost is dependent on nature of identified activities. Estimated Total Project Cost: $4.0 million Anticipated Completion Date: June Condition Assessment for Rail & Bus Infrastructure This project will include efforts to compile, update and validate previously completed condition assessments of various transit system elements, conduct additional condition assessments, and develop a plan for new and ongoing assessments and reporting. 32

162 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Funding Source FY18 & FY19 VTA Transit $550,000 Operating Cost Impact: There is no anticipated impact on operating costs. Estimated Total Project Cost: $550 thousand Anticipated Completion Date: June Express Bus Service Plan The Express Bus Service Plan is a comprehensive service redesign of the Express Bus network that will utilize "big data" to better understand commuter travel patterns and develop a new VTA Express Bus service plan that will better serve the commuters of Santa Clara County. Funding Source FY18 & FY19 State - Planning Grant $380,000 VTA Transit 95,000 Total $475,000 Operating Cost Impact: The opportunity to achieve ongoing cost savings is threefold: First, one of the project's goals is to identify opportunities to improve efficiencies within the Express Bus network, which could result in ongoing operational savings. Second, the project will seek to expand service in high-occupancy ''fixed guideway" lanes, which could increase the amount of FTA 5307 and 5339 funds VTA receives. Third, the study may identify other operational cost savings through service reductions if appropriate. Estimated Total Project Cost: $475 thousand Anticipated Completion Date: December Facilities Assessments Condition assessments of VTA facilities to plan rehabilitation or replacement programs to maintain assets in state of good repair. Funding Source FY18 & FY19 VTA Transit $550,000 Operating Cost Impact: There is no anticipated impact on operating costs. Estimated Total Project Cost: $550 thousand Anticipated Completion Date: June Innovative First/Last-Mile Services Program This program will support the implementation of innovative service models to address first/last mile connections including, FLEX-type services, dynamic on-demand subscription shuttles and partnerships with other demand responsive service providers serving vulnerable, underserved, and transit dependent populations. 33

163 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Funding Source FY18 & FY19 Other Measure B $3,000,000 Operating Cost Impact: Potential ongoing cost savings could be realized through reallocation of existing operating funds. Ongoing annual expenditures would include potential subsidies for new services. Estimated Total Project Cost: $3.0 million Anticipated Completion Date: June North Bayshore Transportation Study This project will study and conceptually engineer a transportation alternative to the North Bayshore area from the NASA Bayshore Light Rail Station. Funding Source FY18 & FY19 Other - Google $1,250,000 Operating Cost Impact: There is no anticipated impact on operating costs. Estimated Total Project Cost: $1.5 million Anticipated Completion Date: December VA Pilot Smart Shuttle This is a five year project with a goal to develop a "Comprehensive Autonomous Shuttle System" featuring on-demand or pre-scheduled service in and around the Palo Alto VA Hospital area, using an autonomous shuttle and pre identified Smart Stop locations. Activities during the first two years of the project include performance of initial research and development and deployment of two autonomous shuttles will be put into service around the Palo Alto VA Hospital. Funding Source FY18 & FY19 Other - Dept of Health & Human Services $995,050 VTA Transit 369,950 Total $1,365,000 Operating Cost Impact: Any ongoing expenditures for the first five years are anticipated to be covered by grant funding. Estimated Total Project Cost: $3.3 million Anticipated Completion Date: July

164 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET 2000 MEASURE A TRANSIT IMPROVEMENT PROGRAM

165 VTA FY 2018 & FY 2019 PROPOSED BUDGET 12.1

166 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET 2000 Measure A Transit Improvement Program Overview The 2000 Measure A Transit Improvement Program, a 30-year plan of major transit improvement capital projects, was approved by Santa Clara County voters in November The 2000 Measure A Ordinance implemented a 30-year half-cent sales tax that became effective on April 1, 2006 and is scheduled to expire on March 31, Pursuant to the ballot measure, revenues from the Tax are limited to the following uses: Fund operating and maintenance costs for increased bus, rail and paratransit service. Extend BART from Fremont through Milpitas to Downtown San Jose and the Santa Clara Caltrain Station. Provide connections from Mineta San Jose International Airport to BART, Caltrain and VTA light rail. Extend Light Rail from Downtown San Jose to the East Valley. Purchase low-floor light rail vehicles. Improve Caltrain: double-track to Gilroy and electrify from Palo Alto to Gilroy. Increase Caltrain service. Construct a new Palo Alto Intermodal Transit Center. Improve bus service in major bus corridors. Upgrade Altamont Commuter Express (ACE). Improve Highway 17 Express bus service. Connect Caltrain with Dumbarton Rail Corridor. Purchase Zero Emission buses and construct service facilities. Develop new light rail corridors. The 2000 Measure A Transit Improvement Program budget appropriation is broken into two major components. The operating budget includes appropriation for non-project specific expenditures such as professional services, debt service, and operating assistance to VTA Transit. The capital budget appropriation is comprised of the anticipated expenditures and commitments on capital projects for the two-year budget period. 35

167 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET 2000 Measure A Transit Improvement Program Comparison of Revenues and Expenses (Dollars in Thousands) Line Category FY16 Actual FY17 Adopted Budget FY17 Projected Actual 1 FY18 Proposed Budget Variance from FY17 Projection % Var FY19 Proposed Budget Variance from FY18 Budget % Var Half-Cent Sales Tax 205, , , ,343 5, % 219,650 4, % 2 Federal BABs Subsidy 2 8,748 8,722 8,753 8,750 (2) 0.0% 8, % 3 Investment Earnings 7,088 4,531 7,056 5,256 (1,800) -25.5% 5, % 4 Other Income (16) -3.8% % 5 Total Revenue 221, , , ,741 3, % 234,282 4, % 6 VTA Operating Assistance 37,954 40,021 38,814 44,684 5, % 45, % 7 Professional & Special Services % 1, % 8 Miscellaneous % % 9 Contributions to Other Agencies 218 1,190 1, (348) -34.1% 0 (673) % 10 Debt Service 30,810 27,431 27,431 38,638 11, % 46,200 7, % 11 Repayment Obligation 15,007 15,247 15,247 15, % 15,499 (97) -0.6% 12 Total Expense 84,631 84,639 83, ,407 17, % 108,304 7, % 13 Revenues Over (Under) Expenses 137, , , , ,978 Note: Totals and percentages may not be precise due to independent rounding 1 Projection as of March 27, Represents remittance from the federal government for a portion of the interest cost for 2010 Sales Tax Revenue Bonds, 2010 Series A, Build America Bonds (BABs) which were issued in November

168 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET 2000 Measure A Transit Improvement Program Sources and Uses of Funds Summary (Dollars in Thousands) Line Description FY16 Actual FY17 Projected Actual 1 FY18 Proposed Budget FY19 Proposed Budget 1 Total Revenues 221, , , ,282 2 Total Non-Project Expenses (84,631) (83,094) (100,407) (108,304) 3 Revenues Over (Under) Expenses 137, , , ,978 4 Project Expenditures 523, , , ,679 5 Less: Funding from Grants & Other Sources (255,800) (173,200) (174,711) (90,737) Measure A Share of Capital 267, , , ,942 7 Beginning Available for Projects 2 560, , , ,371 8 Revenues Over (Under) Expenses 137, , , , Measure A Share of Capital (267,558) (238,750) (326,536) (202,942) 10 Ending Available for Projects 2 429, , ,371 60,407 Note: Totals may not be precise due to independent rounding 1 Projection as of March 27, Undesignated Net Assets plus Remaining Bond Proceeds 37

169 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET 2000 Measure A Capital Program Overview The Proposed FY 2018 & FY Measure A Capital Program utilizes cash-on-hand and projected cash receipts, and does not anticipate incurring additional debt in the two-year period. The total additional appropriation for the identified projects for FY 2018 and FY 2019 is $701.7 million which reflects the planned capital spending to be incurred or committed in the next two years. Project funding for the two-year period is appropriated in FY 2018 in order to facilitate administration of the program. The table below lists each project by category and general funding source. The subsequent pages provide a brief description of each project, identified funding sources for the FY 2018 and FY 2019 requested appropriation, potential operating cost impacts, estimated total project cost, and anticipated completion date. Capital project appropriations do not expire at the end of the fiscal year and are carried forward until the project is completed. Capital carryover is defined as appropriation that is unspent at the end of the fiscal year. Schedule of FY 2018 & FY 2019 Appropriation (Dollars in Thousands) FY 2018 & FY 2019 Funding Source Project Federal Other 2000 Measure A Total 1. Berryessa Extension Project - SVBX 66, , , SVRT Project Development After FY , ,568 SVRT Program Total 66, , , Capitol Expressway Light Rail to Eastridge Phase II 0 130,000 98, , SR 85 Major Investment Study 0 1, ,400 Light Rail Program Total 0 131,400 98, , Caltrain Electrification - Early Investment Program ,000 20,000 Commuter Rail Program Total ,000 20, Capitalized Interest and Other Bond Costs ,900 64,900 Measure A Programwide Total ,900 64,900 Grand Total 66, , , ,709 Note: Totals may not be precise due to independent rounding 38

170 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET 2000 Measure A Transit Improvement Program Descriptions of FY 2018 & FY 2019 Appropriated Projects SVRT Program 1. Berryessa Extension Project - SVBX The Berryessa Extension Project consists of the design and construction of the approximate 10-mile extension of the BART system into Santa Clara County and related costs included in the FTA New Starts Candidate Project. The Berryessa Extension will connect to the track south of the planned BART Warm Springs Station in Southern Fremont to Las Plumas Avenue in San Jose, including two stations (Milpitas and Berryessa). Planned expenditures in this project for the two-year period include completion and close-out of construction contracts, construction on the Hayward Yard Primary Shop, and vehicle procurement. Funding Source FY18 & FY19 Federal - FFGA $66,811, Measure A 105,230,000 Total $172,041,000 Operating Cost Impact: Any operating costs related to this project will be funded by 2008 Measure B, an eighth-cent sales tax approved in November See BART Operating Sales Tax Program on page 65. Estimated Total Project Cost: $2.3 billion Anticipated Completion Date: June SVRT Project Development After FY09 This project captures program-level efforts to deliver the BART extension to San Jose/Santa Clara. Project delivery efforts are focused on the future extension (Phase II) beyond Berryessa. Planned expenditures in this project for the two-year period include engineering, right-of-way and utility relocation efforts, long lead construction and procurement items as well as management of these activities. Funding Source FY18 & FY Measure A $214,568,000 Operating Cost Impact: Any operating costs related to this project will be funded by 2008 Measure B, an eighth-cent sales tax approved in November See BART Operating Sales Tax Program on page 65. Estimated Total Project Cost: $4.7 billion Anticipated Completion Date: December

171 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Light Rail Program 3. Capitol Expressway Light Rail to Eastridge Phase II This project will extend the Capitol light rail to the Eastridge transit center with elevated structures at Capitol Avenue, Story Road, and Tully Road. The Eastridge extension will include stations at Story Road and Eastridge. Funding Source FY18 & FY19 Other - Regional Funds $130,000, Measure A 98,800,000 Total $228,800,000 Operating Cost Impact: Ongoing maintenance costs related to new track and structures would be offset somewhat by reduced operating costs from improved speed and service reliability. Estimated Total Project Cost: $377 million Anticipated Completion Date: December SR 85 Major Investment Study This project will analyze implementation of light rail on SR 85 from San Jose to Mountain View and other transit guideway alternatives such as Bus Rapid Transit (BRT) that would be a precursor to eventual implementation of light rail. Funding Source FY18 & FY19 Other - TBD $1,400,000 Operating Cost Impact: None Estimated Total Project Cost: $2.0 million Anticipated Completion Date: December 2018 Commuter Rail Program 5. Caltrain Electrification Early Investment Program This project represents VTA s portion of Caltrain s Advanced Signal System and Electrification Infrastructure projects in support of the High Speed Rail Early Investment Strategy for a Blended System. This augmentation represents appropriation for the increased commitment authorized by the Board of Directors on June 2, Funding Source FY18 & FY Measure A $20,000,000 Operating Cost Impact: Caltrain is responsible for the direct operation of the system. However, any operational cost impacts may impact future VTA operating contributions. Estimated Total Project Cost: $80.0 million Anticipated Completion Date: June

172 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Measure A Programwide 6. Capitalized Interest and Other Bond Costs This project represents the capitalized portion of interest and debt related ancillary charges that arise from the issuance of sales tax revenue bonds, the proceeds of which fund a portion of various 2000 Measure A capital projects. Operating Cost Impact: None Estimated Total Project Cost: N/A Anticipated Completion Date: March 2036 Funding Source FY18 & FY Measure A $64,900,000 41

173 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET 42

174 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET CONGESTION MANAGEMENT PROGRAM

175 VTA FY 2018 & FY 2019 PROPOSED BUDGET 12.1

176 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Congestion Management Program Overview Congestion Management Agencies (CMAs) were created in 1990 by Proposition 111 and its accompanying legislation, which required that every county with an urbanized population of more than 50,000 establish a CMA. CMAs were designed to meet the goals of increasing the efficiency of existing transit and roadway systems, planning the best capital improvements to these systems, and improving the local land use decision-making process to support and complement the transportation system investments. In 1994, VTA was designated as the CMA for Santa Clara County through a Joint Powers Agreement entered into by the 15 cities and the County of Santa Clara. VTA s Congestion Management Program (CMP) serves as the CMA for Santa Clara County. The CMP, which is fiscally separate from VTA Transit, is funded through assessments to local jurisdictions (Member Agencies), federal and state planning grants, grant program manager administration fees, State Transportation Improvement Program (STIP) Planning Programming and Monitoring Funds, and fees for services provided. The Proposed FY 2018 and FY 2019 CMP Budget is a result of a number of inputs including statutory requirements, Board initiated activities, Member Agency requested activities, and staff recommended initiatives regarding federal, state and regional issues. Based on these inputs, the budget reflects increased focus on tasks and activities related to coordination and advocacy of funding for local projects, capital project initiatives, state/regional advocacy, land use coordination due to new state mandates, and Member Agency assistance. Member Agency Fees are based on the fee schedule adopted by the Board in June 2005, which specifies annual increases of 3.5%. However, the fee structure has remained unchanged since FY The Proposed Budget includes a 5% increase to the fee structure for both FY 2018 and FY

177 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Congestion Management Program Comparison of Revenues and Expenses (Dollars in Thousands) Line Category FY16 Actual FY17 Adopted Budget FY17 Projected Actual 1 FY18 Proposed Budget Variance from FY17 Projection % Var FY19 Proposed Budget Variance from FY18 Budget % Var 1 Federal Operating Grants 1,887 1,765 1,765 2, % 2, % 2 State Operating Grants 821 1,168 1, (335) -27.0% % 3 Investment Earnings % % 4 Member Agency Fees 2,407 2,407 2,407 2, % 2, % 5 Other Income (7) -4.4% % 6 Total Revenue 5,286 5,572 5,567 5, % 5, % 7 Professional & Special Services 1,176 1,569 1,569 1,300 (269) -17.2% 1, % 8 Other Services % % 9 Data Processing % % 10 Contribution to Other Agencies % % 11 VTA Staff Services 4,221 4,138 4,138 4, % 4,080 (252) -5.8% 12 Total Expense 5,628 5,818 5,875 5, % 5,815 (139) -2.3% 13 Revenues Over (Under) Expenses (341) (245) (308) (273) 43 Note: Totals and percentages may not be precise due to independent rounding Congestion Management Program Sources and Uses of Funds Summary (Dollars in Thousands) Line Description FY16 Actual FY17 Projected Actual 1 FY18 Proposed Budget FY19 Proposed Budget 1 Total Revenues 5,286 5,567 5,681 5,858 2 Total Expenses (5,628) (5,875) (5,954) (5,815) 3 Revenues Over (Under) Expenses (341) (308) (273) 43 4 Beginning Fund Balance 1,499 1, Revenues Over (Under) Expenses (341) (308) (273) 43 6 Ending Fund Balance 1, Note: Totals and percentages may not be precise due to independent rounding 1 Projection as of March 27,

178 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Congestion Management Program Member Assessments Member Agency FY 2018 FY 2019 County of Santa Clara $285,325 $299,591 Campbell 53,055 55,708 Cupertino 81,510 85,585 Gilroy 39,656 41,639 Los Altos 26,172 27,481 Los Altos Hills 6,979 7,328 Los Gatos 36,122 37,928 Milpitas 80,835 84,877 Monte Sereno 2,098 2,203 Morgan Hill 26,360 27,678 Mountain View 131, ,835 Palo Alto 148, ,972 San Jose 823, ,299 Santa Clara 217, ,299 Saratoga 22,775 23,914 Sunnyvale 261, ,092 Subtotal: $2,242,313 $2,354,429 VTA - Managing Agency Contribution 285, ,591 TOTAL: $2,527,638 $2,654,020 45

179 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET 46

180 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET VTP HIGHWAY IMPROVEMENT PROGRAM

181 VTA FY 2018 & FY 2019 PROPOSED BUDGET 12.1

182 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET VTP Highway Improvement Program Overview VTP 2040 is the current approved long-range countywide transportation plan for Santa Clara County. Developed by the Congestion Management Program (CMP) and adopted in October 2014, projects must be included in the plan as a pre-requisite for eligibility to receive federal, state, regional, and local discretionary fund programming. VTA enters into construction agreements with cities in the County for various projects that are included in VTP The next update of the long-range countywide transportation plan, VTP 2045, is scheduled for adoption by the VTA Board in late The total additional appropriation for the identified VTP Highway Improvement Program Capital Projects for FY 2018 and FY 2019 is $79.6 million. Project funding for the two-year period is appropriated in FY 2018 in order to facilitate administration of the program. One hundred percent of the VTP Highway Improvement Program expenditures will be funded by grants, through agreements with the appropriate city, financing, a fund exchange (consisting of state funding sources swapped with other available funds), or other funding sources as they become available. The table on the following page lists each project and its general funding source category. The subsequent pages provide a brief description of each project, identified funding sources for the FY 2018 and FY 2019 requested appropriation, potential operating cost impacts, estimated total project cost, and anticipated completion date. Capital project appropriations do not expire at the end of the fiscal year and are carried forward until the project is completed. Capital carryover is defined as appropriation that is unspent at the end of the fiscal year. 47

183 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET VTP Highway Improvement Program Schedule of FY 2018 & FY 2019 Appropriation (Dollars in Thousands) FY 2018 & FY 2019 Funding Source Project Federal State Other Total 1. Bascom Corridor Complete Streets Project Countywide Noise Abatement Program 0 0 4,000 4, I-280 NB Braided Ramps Btwn Foothill Expwy and SR ,000 3, I-280/Winchester Boulevard Improvements 0 0 1,500 1, I-280/Wolfe Rd Interchange Improvements 0 0 2,000 2, I-680 Sound Walls 0 4, , King Road Ped Safety and Transit Access Improvements Silicon Valley Express Lanes-Electronic Toll System (ETS) 0 0 5,132 5, Silicon Valley Express Lanes-US 101/SR 85 Phase ,700 8, Silicon Valley Express Lanes-US 101/SR 85 Phase ,600 12, SR 237 Express Lanes - Mathilda Ave to SR ,000 2, SR 237 Express Lanes - Phase II Extension ,022 18, SR 237/US 101 Mathilda Interchange 0 0 6,154 6, SR 87 Technology-Based Corridor Improvements 0 0 3,000 3, Story/Keyes Corridor Complete Streets Project Tasman Corridor Complete Streets Project Traffic Analysis Software Procurement US 101/SR 25 Interchange Improvements 0 0 4,000 4, US 101/Zanker/Skyport/N 4th Intrchng Improvements 0 0 2,000 2,000 Grand Total 1,365 5,658 72,528 79,551 Note: Totals may not be precise due to independent rounding 48

184 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET VTP Highway Improvement Program Descriptions of FY 2018 & FY 2019 Appropriated Projects 1. Bascom Corridor Complete Streets Project This project is a multi-jurisdictional effort to identify and recommend multimodal improvements along the Bascom corridor (from Bascom/I-880 to Bascom/SR 85). Improvements which may be considered include pedestrian and bicycle safety and connectivity, access to transit, transit rider amenities, and improved transit travel time through signal timing coordination and/or stop improvements. The requested augmentation is for the completion of 35% preliminary engineering design and environmental clearance which will prepare the project to seek grant funds for construction. Funding Source FY18 & FY19 Federal $154,928 State 154,928 Other - 15% VRF 40,144 Total $350,000 Operating Cost Impact: None Estimated Total Project Cost: $2.5 million Anticipated Completion Date: December Countywide Noise Abatement Program This project will implement a noise abatement program along various state highways in Santa Clara County which will include the study and implementation of noise abatement treatments. The requested appropriation is for the development of the Project Initiation Document (PID) phase of this project. Funding Source FY18 & FY19 Other - TBD $4,000,000 Operating Cost Impact: None Estimated Total Project Cost: $50.0 million Anticipated Completion Date: October I-280 NB Braided Ramps Between Foothill Expressway and SR 85 This project reconfigures the existing I-280 northbound off-ramp to Foothill Expressway into a braided ramp with the southbound SR 85 to northbound I-280 direct connector. The requested appropriation is for the development of the Project Initiation Document (PID) and Project Approval/Environmental Document (PA/ED) phases. Funding Source FY18 & FY19 Other - TBD $3,000,000 49

185 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Operating Cost Impact: The California Department of Transportation (Caltrans) assumes responsibility for maintenance and operations upon project completion. There is no operating cost impact to VTA. Estimated Total Project Cost: $47.0 million Anticipated Completion Date: June I-280/Winchester Boulevard Improvements This project will construct improvements in the vicinity of the I-280//Winchester Boulevard Interchange to relieve congestion, improve traffic operations and provide new access from northbound I-280 to Winchester Boulevard. The requested augmentation is for the Project Approval/Environmental Document (PA/ED) and final design phases of the project. Funding Source FY18 & FY19 Other - TBD $1,500,000 Operating Cost Impact: The California Department of Transportation (Caltrans) assumes responsibility for maintenance and operations upon project completion. There is no operating cost impact to VTA. Estimated Total Project Cost: $75.0 million Anticipated Completion Date: April I-280/Wolfe Road Interchange Improvements This project proposes to reconstruct the I-280/Wolfe Road interchange in the City of Cupertino. The requested augmentation is for the Project Approval/Environmental Document (PA/ED) and early final design tasks for the project. Funding Source FY18 & FY19 Other - TBD $2,000,000 Operating Cost Impact: The California Department of Transportation (Caltrans) assumes responsibility for maintenance and operations upon project completion. There is no operating cost impact to VTA. Estimated Total Project Cost: $85.0 million Anticipated Completion Date: September I-680 Sound Walls This project will construct sound walls along I-680 between Capitol Expressway and Mueller Avenue in San Jose. The requested augmentation is for the development of the final design and construction phases. Funding Source FY18 & FY19 State - STIP $4,900,000 Operating Cost Impact: The California Department of Transportation (Caltrans) assumes responsibility for maintenance and operations upon project completion. There is no operating cost impact to VTA. Estimated Total Project Cost: $5.5 million Anticipated Completion Date: November

186 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET 7. King Road Pedestrian Safety and Transit Access Improvements This project improves pedestrian safety and access to bus stops that serve the Berryessa BART Station. This phase of the project will include 35% preliminary engineering design and environmental clearance and outreach for improvements at 13 intersections along the corridor from Tully to Berryessa Road including I-680 ramps. Funding Source FY18 & FY19 Federal - OBAG $607,000 Other - 15% VRF 79,000 Total $686,000 Operating Cost Impact: None Estimated Total Project Cost: $686 thousand Anticipated Completion Date: December Silicon Valley Express Lanes - Electronic Toll System (ETS) The Electronic Toll System is part of the Express Lane Project (Project) which will convert the existing High Occupancy Vehicle (HOV) facility on US 101 and SR 85 in Santa Clara County to Express Lanes. The Project will develop and implement system-wide dynamic pricing software to integrate all field equipment. Electronic signs display the current toll for solo drivers. Tolls will vary based on the level of congestion and will be adjusted to maintain free-flowing traffic. Overhead antennas will read FasTrak transponders and automatically deduct the correct toll from FasTrak accounts. A Violation Enforcement System (VES) which will capture license plate images and send a toll violation notice if the user did not have a toll transponder. Funding Source FY18 & FY19 Other - Financing $5,132,000 Operating Cost Impact: The responsibility for maintenance and operations upon project completion is expected to be with the Silicon Valley Express Lanes Program (see page 61). Estimated Total Project Cost: $46.0 million Anticipated Completion Date: August Silicon Valley Express Lanes - US 101/SR 85 Phase 3 This project will implement a roadway pricing system on US 101 and SR 85 by converting the existing carpool lanes to Express Lane on US 101 (between SR 237 to San Mateo County line), and on SR 85 (between I-280 to US 101 ), including the SR 85/US 101 HOV connector north in Mountain View. The requested budget augmentation for the construction phase is anticipated to fund this project through completion. Funding Source FY18 & FY19 Other - Financing $8,700,000 51

187 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Operating Cost Impact: The responsibility for maintenance and operations upon project completion is expected to be with the Silicon Valley Express Lanes Program (see page 61). Estimated Total Project Cost: $45.0 million Anticipated Completion Date: December Silicon Valley Express Lanes - US 101/SR 85 Phase 4 This project will implement a roadway pricing system on US 101 and SR 85 by converting the existing carpool lanes to Express Lanes on US 101 (between Bailey Road to SR 85 interchange south), and on SR 85 (between US 101/SR 85 interchange south to SR 87), including the SR 85/US 101 HOV connector south in San Jose. The requested budget augmentation for the construction phase is anticipated to fund this project through completion. Funding Source FY18 & FY19 Other - Financing $12,600,000 Operating Cost Impact: The responsibility for maintenance and operations upon project completion is expected to be with the Silicon Valley Express Lanes Program (see page 61). Estimated Total Project Cost: $24.0 million Anticipated Completion Date: December SR 237 Express Lanes - Mathilda Ave to SR 85 This project proposes to construct a new HOV/Express Lane in both directions on SR 237 between Mathilda Avenue to SR 85, which includes modifications to the US 101/SR 237 interchange. The requested appropriation is for the Project Initiation Document (PID) phase of this project. Funding Source FY18 & FY19 Other - TBD $2,000,000 Operating Cost Impact: The responsibility for maintenance and operations upon project completion is expected to be with the Silicon Valley Express Lanes Program (see page 61). Estimated Total Project Cost: $81.0 million Anticipated Completion Date: June SR 237 Express Lanes - Phase II Extension This project will implement a roadway pricing system on SR 237 to allow unused capacity in the carpool lanes to provide congestion relief. The project would convert the carpool lane operations to express lane operations by expanding the use of these lanes to fee paying commuters. Phase II will convert the existing carpool lane to Express Lanes between First Street in the City of San Jose to Mathilda Avenue in the City of Sunnyvale within the existing highway footprint. The requested budget augmentation is anticipated to fund this project through completion. 52

188 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Funding Source FY18 & FY19 Other - Financing $16,164,200 Other - Sunnyvale 380,000 Other - 15% VRF 1,477,321 Total $18,021,521 Operating Cost Impact: The responsibility for maintenance and operations upon project completion is expected to be with the Silicon Valley Express Lanes Program (see page 61). Estimated Total Project Cost: $39.0 million Anticipated Completion Date: December SR 237/US 101 Mathilda Interchange This project proposes to improve Mathilda Avenue in the City of Sunnyvale from Almanor Avenue to Innovation Way, including on- and off-ramp improvements at the SR 237 and US 101/Mathilda Avenue interchanges to reduce congestion and improve traffic operations on Mathilda Avenue. The requested budget augmentation is anticipated to fund this project through completion. Funding Source FY18 & FY19 Other - TBD $6,154,000 Operating Cost Impact: The California Department of Transportation (Caltrans) assumes responsibility for maintenance and operations upon project completion. There is no operating cost impact to VTA. Estimated Total Project Cost: $40.0 million Anticipated Completion Date: June SR 87 Technology-Based Corridor Improvements This project will address mainline and local roadway congestion and system reliability on SR 87 in San Jose through the implementation of technology-based operational improvements to the freeway and local streets. The requested augmentation is for the Project Approval/Environmental Document (PA/ED), final design and construction phases of the project. Funding Source FY18 & FY19 Other - TBD $3,000,000 Operating Cost Impact: None Estimated Total Project Cost: $40.0 million Anticipated Completion Date: June Story/Keyes Corridor Complete Streets Project This project proposes to improve transit, bicycle and pedestrian infrastructure along the Story/Keyes corridor which runs 4.1 miles from Willow Street/SR 87 to Story Road/Capitol Expressway in San Jose. The requested augmentation is for the completion of 35% 53

189 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET preliminary engineering design and environmental clearance which will prepare the project to seek grant funds for construction. Funding Source FY18 & FY19 Federal - TBD $414,984 State - TBD 414,984 Other - 15% VRF 107,532 Total $937,500 Operating Cost Impact: None Estimated Total Project Cost: $1.7 million Anticipated Completion Date: December Tasman Corridor Complete Streets Project This project is a multi-jurisdictional effort that proposes to improve transit, bicycle and pedestrian infrastructure along the Tasman corridor which runs 7.2 miles from Tasman/Fair Oaks in Sunnyvale through Santa Clara and San Jose to Great Mall Parkway/Montague Expressway in Milpitas. The requested augmentation is for the completion of 35% preliminary engineering design and environmental clearance which will prepare the project to seek grant funds for construction. Funding Source FY18 & FY19 Federal - TBD $188,126 State - TBD 188,126 Other - 15% VRF 48,748 Total $425,000 Operating Cost Impact: None Estimated Total Project Cost: $2.8 million Anticipated Completion Date: December Traffic Analysis Software Procurement This project will replace an outdated software that is used by all Congestion Management Program member agencies and consultants in Santa Clara County to analyze transportation impacts from land use developments at signalized intersections. Funding Source FY18 & FY19 Other - Congestion Management Program $145,000 Operating Cost Impact: On-going/annual expenditures estimated at $1,500 include software upgrades and training for all member agency staff. Annual costs to be funded by the Congestion Management Program (see page 43). Estimated Total Project Cost: $145 thousand Anticipated Completion Date: June

190 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET 18. US 101/SR 25 Interchange Improvements This project proposes to widen US 101 from four to six lanes in Santa Clara County to meet future traffic demands and provide access control. The project includes widening and replacing bridge structures, correcting existing horizontal curves, constructing a new interchange at the intersection of US 101 and SR 25, and adding additional ramp lanes at the US 101 /SR 25 Interchange. The requested appropriation is for the completion of supplemental Project Approval/Environmental Document (PA/ED) and early design tasks. Funding Source FY18 & FY19 Other - TBD $4,000,000 Operating Cost Impact: The California Department of Transportation (Caltrans) assumes responsibility for maintenance and operations upon project completion. There is no operating cost impact to VTA. Estimated Total Project Cost: $180.0 million Anticipated Completion Date: December US 101/Zanker Road/Skyport Drive/North 4th Street Interchange Improvements This project proposes to construct a new interchange at US 101 to connect Zanker Road and Old Bayshore Highway with North Fourth Street and Skyport Drive in San Jose. Phase 1 of the project will provide an overcrossing across US 101 to improve limited existing connectivity across US 101 to the North San Jose employment centers. Phase 2 of the project will construct an interchange using the existing overcrossing structure to provide access to US 101. The requested augmentation is for the Project Approval/Environmental Document (PA/ED) phase and early design tasks. Funding Source FY18 & FY19 Other - TBD $2,000,000 Operating Cost Impact: The California Department of Transportation (Caltrans) assumes responsibility for maintenance and operations upon project completion. There is no operating cost impact to VTA. Estimated Total Project Cost: $138.0 million Anticipated Completion Date: December

191 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET 56

192 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET JOINT DEVELOPMENT PROGRAM

193 VTA FY 2018 & FY 2019 PROPOSED BUDGET 12.1

194 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Joint Development Program Overview The VTA Board of Directors, based on staff recommendations, adopted a Joint Development Policy that establishes a deliberate and aggressive real estate development and disposition program aimed at generating revenue, promoting transit-oriented development, and enhancing transit operations. VTA has identified 23 sites in the Joint Development portfolio that total approximately 200 acres and that may be appropriate for joint development, which is defined as mixed-use, mixed-income Transit-Oriented Development pursuant to the FTA (Federal Transit Administration) Circular on Joint Development. To date, five of six sites identified as surplus property, meaning they can be disposed of in the near term with no effect on current or future transit operations, have been sold with proceeds accruing to the Joint Development Program Fund The FY 2018 and FY 2019 Proposed Budget for the Joint Development Program represents current and anticipated lease revenues, as well as the level of effort (expenditures) required to implement multiple joint development projects with the goal of generating a substantial new long-term revenue source for the Agency. Prior to FY 2012, activities related to the Joint Development Program were captured solely in the VTA Transit Operating Budget. Based on the anticipated level of future activities, they are now being captured as a separately reported fund. The Joint Development Program budget is broken into two major components. The operating budget includes appropriation for program-wide planning and analysis. The capital budget captures costs for site analysis, entitlement processing, developer solicitation, and joint development agreements for individual properties. The work program is focused on accomplishing close to full build-out of the current Joint Development portfolio. The current work effort in a given fiscal year reflects the interaction between obtaining entitlements to support joint development, current market and economic conditions, developer interest, and VTA staff capacity to initiate as well as complete new joint development projects. The table on page 59 shows the capital budget appropriation requested for FY 2018 and FY 2019 and is followed by a brief project description, funding sources, and potential operating cost impact. Project funding for the two-year period is appropriated in FY 2018 in order to facilitate administration of the program. Capital project appropriations do not expire at the end of the fiscal year and are carried forward until the project is completed. 57

195 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Joint Development Program Comparison of Revenues and Expenses (Dollars in Thousands) Line Category FY16 Actual FY17 Adopted Budget FY17 Projected Actual 1 FY18 Proposed Budget Variance from FY17 Projection % Var FY19 Proposed Budget Variance from FY18 Budget % Var 1 Investment Earnings % % 2 Property Rental (84) -13.3% 460 (89) -16.1% 3 Total Revenue 1, ,008 1,004 (4) -0.4% 1, % 4 Professional & Special Services % 190 (200) -51.3% 5 Miscellaneous (5) -33.3% % 6 Total Expense % 200 (200) -50.0% 7 Revenues Over (Under) Expenses Note: Totals and percentages may not be precise due to independent rounding Joint Development Program Sources and Uses of Funds Summary (Dollars in Thousands) Line Description FY16 Actual FY17 Projected Actual 1 FY18 Proposed Budget FY19 Proposed Budget 1 Total Revenues 1,015 1,008 1,004 1,029 2 Total Expenses (171) (160) (400) (200) 3 Revenues Over (Under) Expenses Beginning Net Assets 28,366 29,209 30,057 30,661 5 Revenues Over (Under) Expenses Ending Net Assets 29,209 30,057 30,661 31,490 Note: Totals and percentages may not be precise due to independent rounding 1 Projection as of March 27,

196 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Joint Development Capital Program Schedule of FY 2018 & FY 2019 Appropriation (Dollars in Thousands) FY 2018 & FY 2019 Funding Source Project Joint Development Other Total 1. Joint Development Predevelopment Activities 2, ,800 Grand Total 2, ,800 Description of FY 2018 & FY 2019 Appropriated Project 1. Joint Development Predevelopment Activities This project reserves appropriation for various predevelopment and project assistance activities on joint development sites. These activities include development feasibility, CEQA (California Environmental Quality Act) Analysis, land entitlements, site design, parking and circulation analysis, financial feasibility, legal review, peer review, transactional support, and construction management. As expenditure needs are identified, appropriation is reallocated from this placeholder project to the respective site specific project. Operating Cost Impact: None Funding Source FY18 & FY19 Joint Development $2,500,000 Other-Developers 300,000 Total $2,800,000 59

197 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET 60

198 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET SILICON VALLEY EXPRESS LANES PROGRAM

199 VTA FY 2018 & FY 2019 PROPOSED BUDGET 12.1

200 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Silicon Valley Express Lanes Program Overview In December 2008, the VTA Board of Directors approved the Silicon Valley Express Lanes Program (SVELP) which had been under development since The SVELP, as approved, was the result of 18 months of coordination, analysis, and outreach on both technical and policy areas related to implementing Express Lanes as a means to address congestion levels on highways while also looking towards new solutions to accommodate the future growth in travel demand. The goal of the SVELP is to provide long-term mobility benefits and another funding stream for transportation improvements. Specifically, the primary objectives of the SVELP are to provide congestion relief through more effective use of existing roadways; provide commuters with a new mobility option; and provide a new funding source for transportation improvements including public transit. As part of the SVELP, the Express Lanes projects implement a roadway pricing system to allow for the use of unused capacity in the carpool lanes to provide congestion relief and a new mobility option for some commuters. The roadway pricing system allows solo commuters to use the available capacity in the carpool lanes for a fee. The fee changes dynamically in response to existing congestion levels and available capacity in the carpool lanes. When solo commuters choose to use Express Lanes, this in turn also provides for traffic congestion relief in the general purpose lanes. The SVELP is comprised of two corridors: the SR 237 corridor between I-880 and SR 85, and the US 101/SR 85 corridor within Santa Clara County up to the San Mateo County line. VTA has legislative authority to convert existing carpool lanes on two corridors within the county- based on Assembly Bill (AB) 2032 which passed in 2004 and the follow-up AB 574 which passed in Additionally, AB 1105 which passed in 2011 allows VTA to extend the two corridors into the adjacent counties subsequent to an agreement with the neighboring county s Congestion Management Agency (CMA). The SR 237/I-880 Express Connectors project is the first phase of the SR 237 Express Lanes project that converted the carpool lane connector ramps at the SR 237/I-880 interchange to Express Lanes operations. The SR 237 Express Lanes opened for tolling on March 20, The second phase of the SR 237 Express Lanes will involve extending Express Lanes further to the west on SR 237 close to US 101, including conversion of the remaining lengths of carpool lanes to Express Lanes operations. Phase 2 is projected to open in summer The Proposed FY 2018 and FY 2019 SVELP Budget represents the anticipated revenues and expenditures for Express Lane operations and general program expenditures over the next two fiscal years. The primary revenue source for this program is tolls. 61

201 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Operating For Operating, the anticipated expenditures incorporate operating and maintenance costs including but not limited to labor, professional and special services such as toll processing fees, enforcement, electronic toll system maintenance, road maintenance, utilities, insurance, and contingency. Program The Program section includes the expenditure related to the second phase of the SR 237 Express Lanes which will extend Express Lanes further to the west on SR 237 close to US 101, including conversion of the remaining lengths of carpool lanes to Express Lanes operations. Anticipated expenditures include $320,000 for signage upgrades within the SR 237/I-880 Express Connectors project. In addition, $500,000 will be used to minimize acquisition costs for the funding of Phase 2 construction. Silicon Valley Express Lanes Program Comparison of Revenues and Expenses (Dollars in Thousands) Line Category FY16 Actual FY17 Adopted Budget FY17 Projected Actual 1 FY18 Proposed Budget Variance from FY17 Projection % Var FY19 Proposed Budget Variance from FY18 Budget % Var 1 Toll Revenues 1,274 1,166 1,166 1,150 (16) -1.4% 1, % 2 Investment Earnings % % 3 Total Revenue 1,317 1,186 1,186 1,175 (11) -0.9% 1, % 4 Professional & Special Services % % 5 Utilities (1) -33.3% % 6 Insurance N/A 0 0 N/A 7 Office Expense N/A 0 0 N/A 8 Communications N/A 2 2 N/A 9 Miscellaneous N/A % 10 VTA Staff Services % % 11 Contingency N/A % 12 Sub-total Operating Expense 943 1, , % 1, % 13 Contribution to Other Agencies-Ph2 Upgrades N/A 0 (320) % 14 Contribution to Other Agencies-Ph2 Funding N/A 0 (500) % 15 Sub-total Program Expense N/A 0 (820) % 16 Total Expense 943 1, ,974 1, % 1,193 (781) -39.6% 17 Revenues Over (Under) Expenses (799) 82 Note: Totals and percentages may not be precise due to independent rounding 1 Projection as of March 27,

202 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Silicon Valley Express Lanes Program Sources and Uses of Funds Summary (Dollars in Thousands) Line Description FY16 Actual FY17 Projected Actual 1 FY18 Proposed Budget FY19 Proposed Budget 1 Total Revenues 1,317 1,186 1,175 1,275 2 Total Expenses (943) (858) (1,974) (1,193) 3 Revenues Over (Under) Expenses (799) 82 4 Beginning Net Assets 1,991 2,364 2,692 1,893 5 Revenues Over (Under) Expenses (799) 82 6 Ending Net Assets 2,364 2,692 1,893 1,975 Note: Totals may not be precise due to independent rounding Staff is proposing to set-aside the following portions of the net assets of the SVELP as designated reserves: $1M for Express Lanes toll system replacement, $100,000 to fund an Equity Program to provide assistance to low income travelers within the corridor, $200,000 for debt service on Phase 2 construction financing, and $100,000 to provide support for VTA Transit Operations. The remaining balance would be undesignated reserves. Silicon Valley Express Lanes Program Designated Reserves (Dollars in Thousands) FY18 FY19 Projected Ending Net Assets 1,893 1,975 Designated Reserves: Electronic Toll System Replacement 1,000 1,000 Equity Program VTA Transit Operations Phase 2 Debt Service Total Designated Reserves 1,400 1,400 Projected Undesignated Reserves Projection as of March 27,

203 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET 64

204 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET 2008 MEASURE B BART OPERATING SALES TAX PROGRAM

205 VTA FY 2018 & FY 2019 PROPOSED BUDGET 12.1

206 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET BART Operating Sales Tax Program Overview On November 4, 2008, the voters of Santa Clara County approved 2008 Measure B (Measure), a 30-year one-eighth cent sales and use tax dedicated solely to providing the operating and maintenance expenses and capital reserve contribution for VTA s BART Silicon Valley Extension. Per the Measure, the tax would only commence collection if sufficient state and federal funds were secured to match local construction dollars. Federal funds would be considered secured and matched when the Federal Transit Administration (FTA) executed a Full Funding Grant Agreement (FFGA), or its equivalent, in an amount of at least $750 million. State funds would be considered secured and matched when the California Transportation Commission (CTC) approved an Allocation Request, or its equivalent, in an amount of at least $240 million. The FFGA for $900 million was signed on March 12, 2012 and State funding has been secured and matched through state statute, administered by the CTC. The CTC has currently disbursed $569 million of the $649 million Traffic Congestion Relief Program (TCRP) funds guaranteed to the project. With both the federal and state funding requirements met, the tax commenced collection on July 1, Construction of Phase I of VTA s BART Silicon Valley project, the 10-mile extension to Milpitas and Berryessa, is nearing completion. The service levels, maintenance, and costs for the extension will be managed under a VTA/BART Operations and Maintenance (O&M) Agreement. The O&M Agreement, which defines each agency s roles, responsibilities and costs, as well as the revenue allocation for operation of the extension, is currently being finalized. The Proposed Budget assumes the extension will begin operations at the end of

207 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET BART Operating Sales Tax Program Comparison of Revenues and Expenses (Dollars in Thousands) Line Category FY16 Actual FY17 Adopted Budget FY17 Projected Actual 1 FY18 Proposed Budget Variance from FY17 Projection % Var FY19 Proposed Budget Variance from FY18 Budget % Var 1 Sales Tax Revenues 49,262 51,733 50,471 51,682 1, % 52,716 1, % 2 Investment Earnings 2,981 2,104 2,425 4,358 1, % 5,994 1, % 3 Total Revenue 52,243 53,837 52,896 56,040 3, % 58,709 2, % 4 Security ,523 2,523 N/A 5,240 2, % 5 Professional & Special Services % % 6 Other Services N/A % 7 Insurance N/A % 8 Contribution to Other Agencies ,100 9,100 N/A 13,000 3, % 9 VTA Staff Time N/A 1, % 10 Transfer to Capital Reserve ,710 1,710 N/A 3,875 2, % 11 Total Expense ,670 14, % 24,744 10, % 12 Revenues Over (Under) Expenses 52,099 53,581 52,705 41,370 33,966 Note: Totals and percentages may not be precise due to independent rounding BART Operating Sales Tax Program Sources and Uses of Funds Summary (Dollars in Thousands) Line Description FY16 Actual FY17 Projected Actual 1 FY18 Proposed Budget FY19 Proposed Budget 1 Total Revenues 52,243 52,896 56,040 58,709 2 Total Expenses (144) (192) (14,670) (24,744) 3 Revenues Over (Under) Expenses 52,099 52,705 41,370 33,966 4 Beginning Net Assets 135, , , ,590 5 Revenues Over (Under) Expenses 52,099 52,705 41,370 33,966 6 Ending Net Assets 187, , , ,556 Note: Totals may not be precise due to independent rounding 1 Projection as of March 27,

208 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET 2016 MEASURE B PROGRAM

209 VTA FY 2018 & FY 2019 PROPOSED BUDGET 12.1

210 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET 2016 Measure B Program Overview On November 8, 2016, the voters of Santa Clara County approved 2016 Measure B, a 30-year, one-half cent countywide sales and use tax to enhance transit, highways, expressways and active transportation (bicycles, pedestrians and complete streets). The measure passed by nearly 72%, the highest level of support for any Santa Clara County transportation tax. Collection of the tax began on April 1, The 2016 Measure B ballot identified nine program categories for funding allocations: Local Streets and Roads BART Phase II Bicycle and Pedestrian Caltrain Grade Separation Caltrain Corridor Capacity Improvements Highway Interchanges County Expressways SR 85 Corridor Transit Operations Guidelines for each of the categories are currently under development with the final draft guidelines scheduled to be presented to the Board of Directors on May 4, The FY 2018 and FY 2019 Proposed 2016 Measure B Program Fund Budget on the following page represents the anticipated program revenues, and expenditures by program category, over the next two fiscal years. The anticipated expenditures include the reimbursement of $1.65M to the VTA Transit Fund for payment made to the Registrar of Voters for 2016 Measure B s share of costs of the November 8, 2016 General Election. Funding for the two-year period is appropriated in FY 2018 in order to facilitate administration of the program. Similar to a capital budget, appropriation for the program will not expire at the end of the fiscal year and will be carried forward until the 2016 Measure A Program is completed. 67

211 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET 2016 Measure B Program Projected Revenues (Dollars in Thousands) Line Category FY17 Projected Actual 1 FY18 Proposed Budget FY19 Proposed Budget 1 Sales Tax Revenues 53, , ,650 2 Investment Earnings ,716 3 Total Revenue 53, , ,366 Note: Totals and percentages may not be precise due to independent rounding Proposed Funding Allocation (Dollars in Millions) FY18 FY19 Administrative Costs FORMULA BASED 2 Program Area Local Streets & Roads Transit Operations Enhance Core Network Innovative Transit Models Expand Mobility & Affordable Fares Improve Amenities 1.30 Bicycle & Pedestrian Education/Encouragement 2.50 Capital Projects Planning Projects 0.83 NEED/ CAPACITY BASED BART Phase II 0.00 Caltrain Grade Separation 7.00 Caltrain Corridor Capacity 2.00 SR 85 Corridor County Expressways Highway Interchanges Total Projection as of March 27, Allocation based on Program Area total divided by number of years in measure 68

212 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET APPENDICES

213 VTA FY 2018 & FY 2019 PROPOSED BUDGET 12.1

214 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET APPENDIX A VTA Administrative Code requires that the Proposed Budget include a list of all employee position classifications and pay ranges. The table below lists the minimum and maximum annual salary for each VTA job classification as of March 1, Job Classifications and Pay Range Job Classification Minimum Annual Salary Maximum Annual Salary Accessible Services Program Manager 103, ,303 Accountant Assistant 58,853 71,127 Accountant I 62,551 75,664 Accountant II 69,108 83,619 Accountant III 80,783 98,141 Accounts Payable Support Supervisor 66,429 80,783 Administrative Services Assistant 53,433 70,531 Administrator of Social Media & Electronic Communications 108, ,567 Assistant Architect 83, ,146 Assistant Board Secretary 95, ,636 Assistant Cost & Schedule Coordinator 83, ,146 Assistant Counsel 111, ,589 Assistant Real Estate Agent 71,779 86,850 Assistant Supt, Service Management 98, ,320 Assistant Supt, Transit Communications 98, ,320 Assistant Systems Design Engineer 83, ,146 Assistant Transportation Engineer 83, ,146 Associate Architect 96, ,618 Associate Environmental Engineer 96, ,618 Associate Financial Analyst 69,744 84,799 Associate Financial Analyst - NR 71,617 94,534 Associate Human Resources Analyst 71,617 94,534 Associate Land Surveyor 84, ,057 Associate Management Analyst 69,744 84,799 Associate Mechanical Engineer 96, ,618 Associate Real Estate Agent 88, ,203 Associate Systems Design Engineer 96, ,618 Associate Systems Engineer 96, ,618 69

215 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Job Classification Minimum Annual Salary Maximum Annual Salary Associate Transportation Engineer 96, ,618 Audit Program Manager 111, ,589 Automotive Attendant 45,398 54,814 Board Assistant 63,142 76,410 Board Secretary 138, ,000 Bus Stop Maintenance Worker 52,017 62,861 Business Diversity Program Manager 98, ,320 Business Systems Analyst I 68,766 83,214 Business Systems Analyst II 83, ,740 Buyer I 56,398 68,113 Buyer II 66,839 80,916 Buyer III 74,266 89,833 Chief Financial Officer 163, ,600 Chief Information Officer 138, ,000 Chief of Staff to the General Manager 163, ,600 Chief Operating Officer 163, ,600 Claims Analyst 82, ,425 Claims Program Manager 100, ,963 Communications & Media Spokesperson 105, ,587 Communications Systems Analyst I 68,766 83,214 Communications Systems Analyst II 83, ,740 Communications Systems Manager 108, ,567 Community Outreach & Public Engagement Manager 116, ,887 Community Outreach Supervisor 84, ,057 Construction Contracts Administration Manager 128, ,663 Construction Contracts Administrator I 68,766 83,214 Construction Contracts Administrator II 86, ,686 Construction Contracts Compliance Officer 98, ,320 Construction Inspector 76,751 92,878 Contracts Administrator I 68,766 83,214 Contracts Administrator II 86, ,686 Contracts Manager 108, ,567 Contracts Program Manager 103, ,303 Cost & Schedule Coordinator 96, ,618 Creative Services Manager 103, ,303 70

216 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Job Classification Minimum Annual Salary Maximum Annual Salary Customer Experience Manager 108, ,567 Customer Services Supervisor 80,783 98,141 Cyber Security Analyst 87, ,867 Database Administrator I 68,766 83,214 Database Administrator II 83, ,740 Deputy Director 138, ,000 Deputy General Counsel 138, ,000 Director of Business Services 163, ,600 Director of Communications 138, ,000 Director of Engineering & Transportation Infrastructure Development 163, ,600 Director of Planning & Program Development 163, ,600 Director of Public Affairs/Exec Policy Advisor 163, ,600 Director of System Safety & Security 163, ,600 Disbursements Manager 116, ,887 Dispatcher 55,494 79,290 Diversity & Inclusion Manager 128, ,663 Document Services Specialist I 46,081 55,622 Document Services Specialist II 52,017 62,861 Electrician 77,528 93,779 Electro - Mechanic 78,021 88,670 Electronic Technician 78,021 88,670 Employee Relations Manager 128, ,663 Engineering Aide 54,814 66,217 Engineering Group Manager 138, ,000 Engineering Group Manager - SCADA 141, ,085 Engineering Technician I 59,972 72,463 Engineering Technician II 67,492 81,692 Engineering Technician III 76,751 92,878 Enterprise Risk Manager 134, ,185 Environmental Health & Safety Specialist 89, ,260 Environmental Health & Safety Supervisor 93, ,646 Environmental Planner I 61,401 74,266 Environmental Planner II 73,551 88,963 Environmental Planner III 88, ,707 Executive Assistant to the General Manager 71,617 94,534 71

217 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Job Classification Minimum Annual Salary Maximum Annual Salary Executive Manager, Transit Planning & Capital Development 138, ,000 Executive Secretary 64,970 85,760 Facilities Maintenance Coordinator 98, ,320 Facilities Maintenance Manager 111, ,589 Facilities Maintenance Representative 67,492 81,692 Facilities Worker 42,390 60,570 Fare Inspector 50,107 71,573 Financial Accounting Manager 111, ,589 Financial Analyst 80,783 98,141 Financial Analyst -NR 82, ,425 Fiscal Resources Manager 134, ,185 Foreperson - LRT 85,030 96,637 General Counsel 231, ,276 General Maintenance Mechanic 67,492 81,692 General Manager/CEO 316, ,891 Government Affairs Manager 134, ,185 Graphic Designer I 60,252 72,805 Graphic Designer II 69,728 84,426 Human Resources Administrator 75,196 99,259 Human Resources Analyst 82, ,425 Human Resources Assistant 56,117 74,075 Human Resources Manager 128, ,663 Information Services Representative 44,346 63,357 Information Systems Analyst Assistant 59,972 72,463 Information Systems Analyst I 68,766 83,214 Information Systems Analyst II 83, ,740 Information Systems Supervisor 108, ,567 Investment Program Manager 108, ,567 Janitor 44,591 53,788 Junior Cost & Schedule Coordinator 76,512 92,953 Junior Real Estate Agent 64,073 77,528 Junior Systems Design Engineer 76,512 92,953 Junior Transportation Engineer 76,512 92,953 Lead Bus Stop Maintenance Worker 53,539 64,695 Lead Janitor 47,169 56,927 72

218 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Job Classification Minimum Annual Salary Maximum Annual Salary Lead Maintenance Worker - LRT 44,491 63,565 Legal Office Support Supervisor 71,617 94,534 Legal Secretary 68,197 90,020 Light Rail Equipment Superintendent 108, ,567 Light Rail Operator 48,942 69,930 Light Rail Power Foreperson 98, ,362 Light Rail Power Supervisor 103, ,303 Light Rail Signal Maintainer 85, ,195 Light Rail Signal Supervisor 98, ,320 Light Rail Technical Trainer 89, ,225 Light Rail Technical Training Supervisor 98, ,320 Light Rail Track Maintenance Supervisor 89, ,225 Light Rail Way, Power & Signal Superintendent 108, ,567 Light Rail Way, Power & Signal Supervisor 103, ,303 Mail & Warehouse Worker 53,539 64,695 Maintenance Worker - LRT 42,390 60,570 Maintenance Instructor 93, ,646 Maintenance Scheduler 64,353 77,870 Maintenance Superintendent 108, ,567 Management Aide 61,402 74,659 Management Aide -NR 64,970 85,760 Management Analyst 80,783 98,141 Management Analyst - NR 82, ,425 Management Secretary 58,930 77,787 Manager of Procurement, Contracts & Materials 141, ,085 Manager of Security Programs 116, ,887 Manager, Budget & Administration 111, ,589 Manager, Construction Inspection 111, ,089 Manager, Market Development 113, ,139 Manager, Operations Analysis, Reporting & Systems 108, ,567 Manager, Real Estate & Project Administration 134, ,185 Materials & Warranty Manager 108, ,567 Materials Resource Scheduler 56,398 68,113 Network Analyst I 68,766 83,214 Network Analyst II 83, ,740 73

219 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Job Classification Minimum Annual Salary Maximum Annual Salary Office & Timekeeping Technician 52,794 63,763 Office Specialist I 44,776 54,037 Office Specialist II 50,153 60,531 Office Support Supervisor 66,429 80,783 Operations Manager 134, ,185 Operations Systems Supervisor 93, ,646 Operator 41,954 69,930 Operator - Trainee 34,986 34,986 Overhaul & Repair Foreperson 85,030 96,637 Overhaul & Repair Mechanic 78,021 88,670 Overhead Line Worker 91, ,166 Paint & Body Foreperson 85,030 96,637 Paint & Body Worker 78,021 88,670 Paralegal 68,197 90,020 Parts Clerk 48,755 69,659 Parts Foreperson 75,878 86,216 Passenger Facilities & Wayside Maintenance Supervisor 80,783 98,141 Payroll Support Supervisor 66,429 80,783 Permit Technician 61,992 74,949 Policy & Administrative Manager - Operations 111, ,589 Policy Analyst 95, ,636 Principal Construction Inspector 98, ,320 Principal Environmental Planner 113, ,139 Principal Safety Auditor 105, ,587 Principal Transportation Planner 113, ,139 Procurement & Materials Manager 128, ,663 Programmer I 68,766 83,214 Programmer II 87, ,178 Project Controls Group Manager 141, ,085 Project Controls Specialist I 68,766 83,214 Project Controls Specialist II 83, ,740 Project Controls Supervisor 113, ,139 Public Communication Specialist I 68,766 83,214 Public Communication Specialist II 77,528 93,779 Public Relations Supervisor 93, ,646 74

220 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Job Classification Minimum Annual Salary Maximum Annual Salary Purchasing Manager 108, ,567 Quality Assurance & Warranty Manager 113, ,139 Quality Assurance & Warranty Specialist 80,916 97,912 Regional Transportation Services Manager 116, ,887 Regional Transportation Services Supervisor 95, ,636 Revenue Services Manager 113, ,139 Risk Analyst 82, ,425 Safety Manager 134, ,185 Sales & Promotions Supervisor 84, ,057 Secretary 54,814 66,217 Service Mechanic 62,317 70,803 Service Worker 47,736 68,182 Service Worker - Foreperson 51,418 73,445 Sr Accountant 93, ,646 Sr Advisor, Business Development 116, ,887 Sr Architect 113, ,596 Sr Assistant Counsel 134, ,185 Sr Business Systems Analyst 96, ,489 Sr Communications Systems Analyst 96, ,489 Sr Construction Contracts Administrator 98, ,320 Sr Construction Inspector 84, ,672 Sr Construction Inspector - Lead 85, ,692 Sr Contracts Administrator 98, ,320 Sr Cost & Schedule Coordinator 113, ,596 Sr Database Administrator 96, ,489 Sr Environmental Engineer 113, ,596 Sr Environmental Planner 103, ,303 Sr Financial Analyst 93, ,646 Sr Financial Analyst (NR) 95, ,636 Sr Human Resources Analyst 95, ,636 Sr Information Representative 61,194 69,534 Sr Information Systems Analyst 96, ,489 Sr Land Surveyor 98, ,320 Sr Management Analyst 93, ,646 Sr Management Analyst (NR) 95, ,636 75

221 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Job Classification Minimum Annual Salary Maximum Annual Salary Sr Mechanical Engineer-Auto Systems 113, ,596 Sr Network Analyst 96, ,489 Sr Office & Timekeeping Technician 58,293 70,443 Sr Policy Analyst 105, ,587 Sr Programmer 96, ,489 Sr Real Estate Agent 103, ,303 Sr Signal Maintainer 93, ,636 Sr Systems Administrator 96, ,489 Sr Systems Design Engineer 113, ,596 Sr Systems Engineer 113, ,596 Sr Track Worker 78,021 88,670 Sr Transportation Engineer 113, ,596 Sr Transportation Planner 103, ,303 Sr Web Developer 96, ,489 Staff Attorney I 75,196 99,259 Staff Attorney II 91, ,604 Substation Maintainer 91, ,166 Supervising Maintenance Instructor 98, ,320 Support Mechanic 51,418 73,445 Survey & Mapping Manager 113, ,139 SVRT Environmental Planning Manager 122, ,606 SVRT Project Controls Manager 134, ,185 Systems Administrator I 68,766 83,214 Systems Administrator II 83, ,740 Technical Project Manager 96, ,489 Technical Trainer 89, ,225 Technical Training Supervisor 98, ,320 Technology Infrastructure Supervisor 108, ,567 Technology Manager 134, ,185 Track Worker 67,122 76,274 Transit Center Maintenance Worker 50,370 60,841 Transit Division Supervisor 89, ,225 Transit Foreperson 85,030 96,637 Transit Maintenance Supervisor 98, ,320 Transit Mechanic 78,021 88,670 76

222 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Job Classification Minimum Annual Salary Maximum Annual Salary Transit Mechanic - G 67,122 76,274 Transit Radio Dispatcher 55,494 79,290 Transit Safety Officer 89, ,225 Transit Service Development Aide 53,291 64,353 Transit Service Development Specialist I 58,574 70,785 Transit Service Development Specialist II 68,113 82,469 Transit Service Development Specialist III 72,122 87,285 Transit Service Development Supervisor 89, ,225 Transit Systems Safety Supervisor 93, ,646 Transportation Engineering Manager 119, ,049 Transportation Planner I 61,401 74,266 Transportation Planner II 73,551 88,963 Transportation Planner III 88, ,707 Transportation Planning Aide 51,085 61,711 Transportation Planning Manager 122, ,606 Transportation Superintendent 108, ,567 Transportation Supervisor 89, ,225 Upholsterer 78,021 88,670 Upholstery Foreperson 85,030 96,637 Utilities Coordination Manager 98, ,320 Utility Coordinator 80,511 97,415 Utility Worker 47,823 57,734 Vault Room Worker 48,319 58,293 Vehicle Parts Supervisor 89, ,225 Warranty Coordinator 98, ,320 Web Developer I 68,766 83,214 Web Developer II 83, ,740 77

223 VTA FY 2018 & FY 2019 PROPOSED BUDGET APPENDIX B 12.1 VTA Transit Fund Unrestricted Net Assets/Reserves Because of the recognized volatility of VTA s primary revenue source (i.e., sales tax receipts) it is prudent to maintain reserves that enable VTA to survive periodic swings in the economy without impacting service levels to the public and agency employment/compensation levels. It is also prudent to ensure that funds are available to sustain a capital program that maintains VTA s infrastructure and keeps assets in a state of good repair. The VTA Board of Directors has been proactive in managing VTA s finances in a manner that protects the interests of the public and helps provide a level of security for VTA s personnel by designating funds for specific purposes. VTA s reserves are largely static with adjustments approved by the Board either directly, or through the budget process. Any changes to the policies governing these reserves or the appropriate level of reserves are subject to Board policy decisions. Reserve Accounts The VTA Transit Fund currently maintains three reserve accounts as described below: Operating Reserve It is the policy of VTA to accumulate a prudent level of reserves by building and maintaining an Operating Reserve equal to 15% of the annual operating budget for the VTA Transit Fund. The purpose of this reserve is to ensure that sufficient funds are always available in the event of either unavoidable expenditure needs or unanticipated revenue shortfalls from sources other than sales tax based revenues. The Board formalized this long-standing practice with adoption of the VTA Transit Fund Operating Reserve Policy on April 5, Sales Tax Stabilization Fund The Sales Tax Stabilization Fund reserve was created by the Board as part of the FY 2012 and FY 2013 Biennial Budget adoption on June 2, 2011 to mitigate the impact of the volatility of sales tax based revenues on service levels and the operating budget. Per the Board policy adopted on April 5, 2012, this reserve carries a maximum balance of $35 million. Capital Reserve (formerly Debt Reduction Fund) The Capital Reserve was established by the Board on February 7, Per the Board policy also approved on February 7, 2008, this fund may be used to reduce long-term liabilities or provide funding for approved transit-related capital improvements and replacement of capital assets. This reserve is used primarily to fund the local portion of the VTA Transit capital program in order to keep assets in a state of good repair. 78

224 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Other Designated Funds In addition to the reserve accounts listed above, there are three other components to the Unrestricted Net Assets that have been restricted by board resolution, contractual requirements, or other practical reasons. Irrevocable Transfer to OPEB (Other Postemployment Benefits) Trust As part of the FY 2012 and FY 2013 Biennial Budget adoption on June 2, 2011, $20.65M was set aside specifically to address unfunded OPEB liabilities. In FY 2013, VTA made a one-time irrevocable transfer of these funds to the OPEB Trust. These funds are dedicated to providing benefits to retirees and their beneficiaries. The remaining balance has reduced by the FY 2016 Annual Required Contribution. Local Share of Capital Projects This designation represents funds previously appropriated for and committed to capital projects. Per VTA Budget Resolution, Capital appropriations, which are not expended during the fiscal year, shall carry over to successive fiscal years until the projects are completed or otherwise terminated. The Local Share of Capital Projects designation represents the locally funded portion of this carryover. The Budget Resolution also states that The locally funded portion of the VTA Transit Fund capital appropriation carry over shall be set-aside as a designation of Unrestricted Net Assets in the Comprehensive Annual Financial Report. Inventory and Prepaid Expenses This component of net assets represents the value of parts inventory and the prepayment of expenses which are not liquid or otherwise unavailable for use. Unrestricted Net Assets Status The table on the following page shows the Unrestricted Net Assets as reported in the FY 2016 Comprehensive Annual Financial Report as well as the projected balances for FY 2017 through FY

225 12.1 VTA FY 2018 & FY 2019 PROPOSED BUDGET Unrestricted Net Assets (Dollars in Thousands) Fund FY16 FY17 1 Projected FY18 1 Projected FY19 1 Projected Reserves: Operating Reserve 64,147 64,147 62,143 57,855 Sales Tax Stabilization Fund 35,000 32,953 32,953 32,953 Capital Reserve 2 76,378 48,958 29,742 69,722 Total Reserves 175, , , ,530 Other Designated Funds: Irrevocable Transfer to OPEB Trust 3 15,865 15,865 15,865 15,865 Local Share of Capital Projects 132, , , ,468 Inventory and Prepaid Expenses 3 33,615 33,615 33,615 33,615 Total Other Designated Funds 181, , , ,948 Net Pension Liability (GASB 68) 3,4 (195,565) (195,565) (195,565) (195,565) Total Unrestricted Net Assets 161, , , ,913 Note: Totals may not be precise due to independent rounding END OF DOCUMENT 1 Projection as of March 27, Formerly Debt Reduction Fund 3 Balance assumed to remain stable over time 4 Represents amount owed by VTA for benefits provided through a defined benefit pension plan (net of related deferred inflows/outflows). June 30, 2016 balance consisted of $80.6 million for CalPERS and $115 million for VTA/ATU Pension Plan 80

226 Agenda Item TAC #16 CAC #12 CTMA #8 PAC #14 Proposed Biennial Budget Fiscal Years 2018 and 2019 Advisory Committees May 10-11, 2017

227 Strategic Plan Core Values Safety Integrity Quality Sustainability Diversity Accountability 2

228 VTA 2017 Priorities Safety and security Establish systems for implementing 2016 Measure B Make public transit more convenient and useful for more people Create and implement a two-year operations budget that soundly supports mobility solutions Continue Innovation Efforts 3

229 Competing Uses for Revenue Dollars Wages/Compensation Service Delivery Keep Assets in State of Good Repair New Initiatives 4

230 VTA Budgeted Funds VTA Transit 2000 Measure A Transit Improvement Program Congestions Management Program VTP Highway Improvement Program Joint Development Program Silicon Valley Express Lanes Program 2008 Measure B - BART Operating Sales Tax Program 2016 Measure B Program 5

231 Proposed Budget VTA Transit 6

232 VTA Transit FY18 & FY19 Projected Revenues Financing Proceeds 4% STA 2% Other 7% Fares 9% 1976 Half-Cent Sales Tax 45% 2016 Measure B - Transit Operations 3% 2000 Measure A Sales Tax-Operating Assistance 9% Transportation Development Act (TDA) 21% 7

233 VTA Transit FY18 & FY19 Proposed Expenses Contracted Services 8% Debt Service 4% Other 1% Transfer to Capital Reserve 1% Service Delivery 86% 8

234 VTA Transit FY18 & FY19 Service Delivery Breakdown Fuel & Traction Power 4% Other 10% Security 4% Materials & Supplies 10% Labor Costs 72% 9

235 Operating Assumption Risks Economic volatility Sales tax receipt growth Diesel fuel prices Utilities Healthcare costs Transit ridership Labor contract negotiations 10

236 VTA Transit - Capital Budget New Appropriation by Funding Source Federal Grants 53.5% State Grants 0.4% Other 10.3% ($ in Thousands) FY18 & FY19 Federal Grants $93,539 State Grants 668 Other 17,940 VTA Transit 62,686 Total $174,833 VTA Transit 35.9% 11

237 VTA Transit - Capital Budget New Appropriation by Project Type Safety/Security 8% Support 3% Expansion 3% Improvement/ Enhancement 16% ($ in Thousands) FY18 & FY19 Replacement/State of Good Repair $121,640 Improvement/Enhancement 28,914 Safety/Security 14,399 Support 5,305 Expansion 4,575 Total $174,833 Replacement/ State of Good Repair 70% 12

238 Proposed Budget Congestion Management Program 13

239 Congestion Management Program Member Assessments 5% Increase per Year Member Agency FY 2018 FY 2019 County of Santa Clara $ 285,325 $ 299,591 Campbell 53,055 55,708 Cupertino 81,510 85,585 Gilroy 39,656 41,639 Los Altos 26,172 27,481 Los Altos Hills 6,979 7,328 Los Gatos 36,122 37,928 Milpitas 80,835 84,877 Monte Sereno 2,098 2,203 Morgan Hill 26,360 27,678 Mountain View 131, ,835 Palo Alto 148, ,972 San Jose 823, ,299 Santa Clara 217, ,299 Saratoga 22,775 23,914 Sunnyvale 261, ,092 Subtotal: $ 2,242,313 $ 2,354,429 VTA - Managing Agency Contribution 285, ,591 TOTAL: $ 2,527,638 $ 2,654,020 14

240 Proposed Budget 2008 Measure B BART Operating Sales Tax Program 15

241 2008 Measure B BART Operating Sales Tax Program Dedicated to provide funding for BART Silicon Valley Extension costs: Operating Maintenance Capital Reserve Operations & Maintenance Agreement being finalized Service scheduled to start end of 2017 Proposed Budget FY18 FY19 $14.7M $24.7M 16

242 Proposed Budget Summary 1 ($$ in Thousands) Fund Fiscal Year 2018 Fiscal Year 2019 VTA Transit-Operating 475, ,195 VTA Transit-Capital 174, Measure A Transit Improvement Program-Operating 100, , Measure A Transit Improvement Program-Capital 701, Congestion Management Program-Operating 5,954 5,815 VTP Highway Program-Capital 79, Joint Development Program-Operating Joint Development Program-Capital 2, Silicon Valley Express Lanes Program-Operating 1,974 1,193 BART Operating Sales Tax Program-Operating 14,670 24, Measure B Program 294, Includes transfers between funds 2 Total appropriation for FY 2018 and FY 2019 reflected in FY

243 Budget Meeting Schedule Committee VTA Headquarters Wednesday, May 10 1:30 pm Technical Advisory Committee Wednesday, May 10 4:00 pm Citizens Advisory Committee Thursday, May 11 10:00 am Committee for Transportation Mobility and Accessibility Thursday, May 11 4:00 pm Policy Advisory Committee Thursday, May 18 12:00 pm Administration & Finance Committee Board Meeting ~ Biennial Budget Adoption Thursday, June 1 5:30 pm County of Santa Clara, Board Chambers 18

244 QUESTIONS???

245 13 Date: May 3, 2017 Current Meeting: May 10, 2017 Board Meeting: June 1, 2017 BOARD MEMORANDUM TO: THROUGH: FROM: SUBJECT: Santa Clara Valley Transportation Authority Citizens Advisory Committee General Manager, Nuria I. Fernandez Chief Financial Officer, Raj Srinath Fare Policy Review Policy-Related Action: Yes Government Code Section Applies: No ACTION ITEM RECOMMENDATION: Recommend that the VTA Board of Directors: 1. Adopt a finding that a fare increase is necessary to meet operating expenses, including employee wages and fringe benefits and purchasing or leasing supplies, equipment, or materials. 2. Invoke a Statutory Exemption under CEQA, P. R.C (b)(8) and CEQA Guidelines Section 15273(a) (Rates, Tolls, Fares and Charges) for the purpose of modifying and increasing fares. 3. Adopt a resolution establishing rates and fares for VTA bus, light rail, and paratransit services effective January 1, Adopt a resolution establishing rates and fares for VTA bus, light rail, and paratransit services effective January 1, BACKGROUND: VTA is designing a more useful transit network that will meet the goals of increasing ridership, cost-effectiveness and regional connections. The last significant change to VTA fares took effect in 2009, when VTA increased the base fare from $1.75 to $2.00 and also raised Eco Pass fares by approximately 20%. Since then, VTA s cost of providing service has increased whereas VTA's share of operating expenses recovered from fares (Fare Box Recovery Ratio) has declined. Attachment A provides a summary of VTA fares over the past decade. At the January Board meeting, staff outlined the need for the review of VTA s fare policy as well as the six major areas in the fare policy for review, specifically an increase in the base fares, Youth fares,

246 13 free VTA-VTA transfers, fares for Low Income riders, Community Bus fares, and Eco Pass fares. DISCUSSION: Since the January 2017 Board meeting, VTA staff have attended nine community meetings across the county in coordination with the outreach efforts conducted for the service changes resulting from the redesign of VTA s bus network. In addition to the community meetings, VTA conducted an online survey to receive public input on four of the major areas in the fare policy review, including an increase in the base fares, free VTA-VTA transfers, Community Bus fares, and Youth fares. VTA received 2,457 completed surveys. VTA staff initiated meetings with Eco Pass participants in a separate series of meetings commencing the week of April 17 th. Feedback from the general public has been generally positive, with the majority agreeing with or not objecting to raising the base fare to provide free transfers and reduced fares for youth. We have received a few concerns about the impact of increased fares on seniors with fixed incomes, and the availability of Clipper cards. Staff has analyzed the impact of the proposed changes and refined the proposals as discussed below. VTA staff presented this information to the Board at the April Board Workshop and will hold an additional five community meetings in May 2017 to present and discuss proposed fare policy changes. Base Fare Adjustment VTA has experienced increased costs in providing service but has not had a fare increase since Staff projects a fiscal deficit for FY 2017 in the range of $20-25 million. Many of the Bay Area agencies have either already approved fare increases or are in the process of doing so. VTA staff reviewed two scenarios to increase the base fare by approximately 12.5% to 25% (i.e. the adult single ride would increase from $2.00 to $2.25 or $2.50) along with increases in the associated fares such as the Day Pass and the Monthly Pass. Given the magnitude of the financial challenges faced by the organization, coupled with increased community requests for lower youth fares and free transfers, staff proposes moving forward with a 25% increase phased over two years starting January 1, The adult single ride fare will increase from $2.00 to $2.25 on January 1, 2018 and to $2.50 on January 1, All associated fares would increase proportionately with the exception of paratransit fares which would remain unchanged. Page 2 of 9

247 13 A table of proposed fares is included below: VTA Fares Current Fare January 1, 2018 January 1, 2019 ADULT Single Ride Cash $2.00 $2.25 $2.50 Community Bus $1.25 n/a n/a Light Rail Excursion Pass $4.00 $4.50 $5.00 Day Pass $6.00 $7.00 $7.50 Day Pass Token (bag of 5) $15.00 $17.50 $18.75 Express Cash $4.00 $4.50 $5.00 Express Day Pass $12.00 $13.50 $15.00 Monthly Pass $70.00 $80.00 $90.00 Annual Pass $ $ $ Express Monthly Pass $ $ $ Express Annual Pass $1, $1, $1, YOUTH Single Ride Cash $1.75 $1.00 $1.25 Community Bus $0.75 n/a n/a Light Rail Excursion Pass $3.50 $2.00 $2.50 Day Pass $5.00 $3.00 $3.75 Day Pass Token (bag of 5) $12.50 $7.50 $9.50 Monthly Pass $45.00 $30.00 $35.00 Summer Blast Pass $75.00 $60.00 $70.00 Annual Pass $ $ $ SENIOR/DISABLED Single Ride Cash $1.00 $1.00 $1.25 Community Bus $0.50 n/a n/a Light Rail Excursion Pass $2.00 $2.00 $2.50 Day Pass $2.50 $3.00 $3.75 Monthly Pass $25.00 $30.00 $35.00 Annual Pass $ $ $ The base fare increases are expected to result in additional fare revenues of $1.8 million in FY 2018 (for 6 months), $6.1 million in FY 2019, and $8.6 million in FY Youth Fares VTA currently provides discounts on youth fares of 13-40% from the adult base fare, depending on the fare product, as compared to 50-60% discounts for seniors and persons with disabilities Families with multiple children find it difficult to purchase fares for all of their school going children, and staff has heard multiple requests to provide discounted or free fares for youth on VTA. San Francisco Municipal Transportation Agency recently introduced a Free Muni for Youth program that provides registered low and moderate income San Francisco youth ages 5 to 18 free access to Muni services when using a Clipper card. VTA collects $4.2 million annually Page 3 of 9

248 13 from Youth fares. Given the financial challenges faced by VTA and the lack of alternative funding sources to provide free fares for youth, staff proposes to increase the youth discount and make youth fares consistent with fares for seniors/persons with disabilities. This change will result in a revenue loss of $ 1.1million in FY 2018, $2.2 million in FY 2019, and $2.3 million in FY 2020, which could be funded in part by 2016 Measure B funds up to $ 1.5 million per year. Intra-Operator Transfers (VTA-to-VTA) Currently, a single ride fare is not valid for a free transfer from bus to another bus, whereas a single ride fare on rail is valid for 2 hours of travel in any direction from the time of purchase. Currently, 98% of trips are completed within 90 minutes of the initial boarding. In order to optimize the service redesign and increase ridership, staff proposes moving forward a proposal to make single ride fares on Clipper valid for up to 90 minutes system wide. This change will reduce fare revenues by up to $0.9 million in FY 2018, $2.8 million in FY 2019, and $3.9 million in FY Currently, VTA s ticket vending machines (TVMs) issue a paper ticket for a single ride fare, which acts as the proof of purchase for Fare Inspectors performing fare enforcement on light rail. However, on buses, Operators currently do not issue proof of payment for single rides and it is not desirable to burden Bus Operators with fare enforcement responsibilities when their primary responsibility is to operate the bus safely and on schedule. VTA s fare boxes are equipped to issue limited use smart cards, which cost $0.25-$0.30 each, making it financially impractical to issue them as a proof of payment. For these reasons, staff proposes to offer free VTA-to-VTA transfers with single ride fares on Clipper only. This approach is consistent with the regional goal of maximizing the use of Clipper as the fare collection system in the Bay Area. Staff will prepare mitigation strategies to assist riders who do not have a Clipper card similar to the strategies adopted to ease the transition of VTA s Day Pass product to Clipper in early 2016 such as: (a) distribution of Clipper cards at no cost for a limited period of time, (b) additional marketing to public of Clipper resources, and (c) additional public outreaches at major transit centers across the county during implementation. Fares for Low Income riders In August 2013, at the request of the group People Acting in Community Together (PACT), the VTA Board approved the Transit Assistance Program (TAP) pilot project. VTA received a $1.3 million grant from MTC to increase ridership by providing a discounted fare for low income adults not receiving other forms of transportation support. These grants will most likely not be available in the future. The TAP provides a very important lifeline to adults with low incomes by enabling them to use transit for work, health care, and other basic needs. Staff proposes continuing this program using 2016 Measure B funds up to $1 million per year. Page 4 of 9

249 13 Community Bus fares VTA had established a lower fare for community bus routes at inception for two basic reasons; 1. The routes were serviced by cut away vehicles which were significantly cheaper to acquire and operate 2. Bus Operators assigned to community bus routes were paid less than Bus Operators assigned to regular routes. These cost differentials, which were the basis of the reduced community bus fares, no longer exist as VTA operates diesel hybrid transit buses on community bus routes and Bus Operators are paid the same wages regardless of the route they operate. With the service redesign, community bus is no longer included as a service category and therefore, staff proposes that the associated fare category be removed from the fare resolution. This change will have minimal impact on fare revenues of up to $0.2 million per year. Eco Pass fares VTA s Eco Pass is a calendar year pass for unlimited trips on VTA s fixed route service. Fares were established with twin goals of increasing ridership by providing more access and generating revenues equal to the average adult fare per boarding. The program has been well utilized and the average fare per Eco Pass boarding has consistently lagged the average adult fare per boarding. The average Adult Fare per boarding for CY16 was $1.50, and the average Eco Pass fare per boarding for CY16 was $0.61. The Eco Pass pricing structure is tiered and complex and has not been reviewed since inception. As a result, the program has provided very low cost transit access to employers, non-profits and universities/colleges. This raises questions of equity where individuals with low or moderate incomes who do not qualify for the Transit Assistance Program (TAP) pay a full fare, whereas corporations who can afford to pay more are charged a significantly lower fare per boarding. Staff proposes to consolidate the existing four tiers to two tiers, split the program into three logical categories, limit the program to regular VTA service by including the express bus service as an add on option, adjust the pricing structure to more adequately reflect usage by the program participants and to rename the Eco Pass Program to the VTA SmartPass Program. The existing four tiers per service area would be simplified and consolidated into two tiers. Pricing shall be the higher fare of the consolidated headcount tiers resulting in a price increase for participants in the lower priced tiers. Existing Headcount Tiers Proposed Headcount Tiers , ,999 3,000-15,000 3, ,000+ Page 5 of 9

250 13 Staff proposes to split the program into three institutional categories based on the types of participants. Also, the pass would no longer be a valid fare on VTA s express bus service and will require the purchase of the Express Pass add-on option. The minimum contract value will increase from $1,794 to $2,500 to reflect the new pricing structure. Collegiate Pass A Collegiate Pass is proposed to be established for universities and community colleges with a price structure not to exceed San Jose State University (SJSU) per capita rate. The current downtown San Jose service level price for SJSU is $36 per enrolled student/faculty per year. A 5% increase, rounded up to the nearest dollar, shall be applied on January 2018 and on January 2019 increasing SJSU s per enrolled student/faculty rate to $38 in January 2018 and $40 in January Pricing for community colleges in all other service levels which are currently lower shall increase by $5 per year, but not to exceed the SJSU per capita rate. The Collegiate Pass will not be valid on VTA s express bus service. A table showing the existing rates as well as proposed rates is included below for reference. Not-For-Profit Pass A Not-For-Profit Pass is proposed to be established for public agencies such as the county, cities, nonprofit agencies, and low income housing. Staff proposes a fare increase of 15% rounded to the nearest quarter effective January 1, The Not-For-Profit Pass will not be valid on VTA s express bus service. A table showing the existing rates as well as proposed rates is included below for reference. Page 6 of 9

251 13 Corporate Pass A Corporate Pass is proposed to be established for businesses and residential units. Staff proposes a fare increase of 25% rounded to the nearest quarter effective January 1, The Corporate Pass will not be valid on VTA s express bus service. A table showing the existing rates as well as proposed rates is included below for reference. Additional Service Express Pass Option The Collegiate Pass, Not-For-Profit Pass and Corporate Pass will no longer be valid on VTA s express bus service. Participating institutions will have the option to add the Express Pass option to their respective pass. This Express Pass option will also include access to the Dumbarton Page 7 of 9

252 13 Bridge Express, Highway 17 Express and Monterey-Salinas Transit Express operators. Pricing for the Express Pass option will be based on the three institutional categories as shown below: Eco Pass Revenue per Boarding by Institution Type Summary of Changes The table below summarizes the impact of the proposed changes on fare revenues ($ millions): FY 2018 FY 2019 FY 2020 Fare Adjustments $1.8 $6.1 $8.6 Free Transfers ($0.9) ($2.8) ($3.9) Increased Discount for Youth ($1.1) ($2.2) ($2.3) Subsidy from 2016 Measure B - Youth Discounts $1.1 $1.5 $1.5 Subsidy from 2016 Measure B - TAP $1.0 $1.0 $1.0 Elimination of Community Bus fares $0.2 $0.2 $0.2 Eco Pass restructuring $1.3 $3.1 $3.8 Total* $3.4 $6.9 $8.9 *Totals may not foot due to independent rounding Page 8 of 9

253 13 Title VI In order to assess whether the fare change would result in Disparate Impacts on minority populations or a Disproportionate Burden on low income populations, a preliminary Fare Equity Analysis was performed on the proposed fare change. Using the VTA Title VI Policy, a disparate impact threshold 10 percent was used to determine if minority riders are more negatively - or less positively affected- by the proposed change when compared to VTA riders as a whole. The threshold applies to the difference between the aggregate impacts of the proposed fare change on minority and low income riders compared to the aggregate impacts of the change on the overall VTA ridership. Consultant staff conducted a preliminary Fare Equity Analysis, using model outputs from the Fare Model that was calibrated to data from the VTA 2013 Onboard Survey for ethnicity and income by fare type. Based on the preliminary analysis, it does not appear that the fare change would result in either a Disparate Impact on minority populations or a Disproportionate Burden on low income populations. A final Fare Equity Analysis will be provided to the Board in June ALTERNATIVES: The Board could choose to not implement the proposed fare changes. This will result in reduced fare revenues as well as continuing inequities in the existing Eco Pass program. VTA's fare policy will continue to be at cross purposes with it's ridership objectives without free VTA to VTA transfers on Clipper, and fares for Youth will be maintained at current levels. FISCAL IMPACT: The proposed fare changes are expected to result in increased fare revenues by $3.4 million in FY2018, $6.9 million in FY2019, and $8.9 million in FY2020. The proposed VTA Transit Fund Operating budget for FY2018 and FY2019 reflects the increased fare revenues. Prepared by: Ali Hudda Memo No ATTACHMENTS: Fare Memo April Workshop Attachment A (PDF) PROPOSED_Fare_Tariff_ (PDF) PROPOSED_Fare_Tariff_ (PDF) Page 9 of 9

254 13.a ATTACHMENT A VTA Fare Structure History Fixed Route and ADA Paratransit January 2005 to Date Fares (effective date) 1/2005 to 8/2007 (Jan 2005) 9/2007 to 9/2009 (Sep 2007) 10/2009 to date (10/09, 1/15, 1/16) Fixed Route Service (Bus and Light Rail) Adult Cash Community Bus Express Light Rail Excursion (1) Day Pass (6) Day Pass Express (6) Monthly Pass Monthly Pass Express Day Pass Token (Bag of Five) (4) 12 month Pass Subscription 12 month Express Pass Subscription $ $3.50 $3.50 $5.25 $10.50 $61.25 $ $23.60 $ $1, $1.75 $1.00 $3.50 $3.50 $5.00 $10.00 $61.25 $ $22.50 $ $1, $2.00 $1.25 $4.00 $4.00 $6.00 $12.00 $70.00 $ $15.00 $ Youth (2) (7) Cash Community Bus Light Rail Excursion (1) Day Pass (6) Monthly Pass Day Pass Token (Bag of Five) (5) 12 month Pass Subscription $ $3.00 $4.50 $49.00 $20.25 $ $1.50 $0.50 $3.00 $4.00 $40.00 $18.00 $ $1.75 $0.75 $3.50 $5.00 $45.00 $12.50 $ Senior/Disabled (2) Cash Community Bus Light Rail Excursion (1) Day Pass (6) Monthly Pass 12 month Pass Subscription $ $1.50 $2.25 $26.00 $ $0.75 $0.50 $1.50 $2.00 $20.00 $ $1.00 $0.50 $2.00 $2.50 $25.00 $ ADA Paratransit (3) ADA One-Way Trip $3.50 $3.50 $4.00 (1) Light Rail Excursion passes implemented on promotional basis in June 2006 and placed in tariff in July (2) Youth and Senior/Disabled riders can board Express services for the same fare as Local services. (3) Effective August 1, 2003, persons with ADA paratransit photo ID cards may ride any VTA fixed-route service for free. (4) Adult Day Pass Tokens reduced to $15.00 for bag of five effective January (5) Youth Day Pass Tokens reduced to $12.50 for bag of five effective January (6) All Day Passes to be "Clipper Only" (using Accumulator logic) beginning January (7) Eligibility for all Youth fares extended to 18-year olds effective July 2015.

255 13.b RESOLUTION NO. RESOLUTION ESTABLISHING RATES & FARES FOR SANTA CLARA VALLEY TRANSPORTATION AUTHORITY (VTA) RESOLVED that the following bus, light rail and paratransit rates and fares are hereby adopted by Santa Clara Valley Transportation Authority effective January 1, 2018, whereupon all previously adopted rates and fares are repealed, except as provided in Section VII. I. Basic Fare Structure Fare Category Fares Requirements/Restrictions Adult: Single Ride $2.25 Light Rail Excursion Pass $4.50 Day Pass $7.00 Bag of 5 Day Pass Tokens $17.50 Tokens sold only to public agencies, social services, schools, and other nonprofit organizations Monthly Pass $80.00 Prepaid 12 Monthly Passes $ Express Bus: Express fares are only applicable Express Bus Single Ride $4.50 for Adult riders. Express Day Pass $13.50 Express Monthly Pass $ Prepaid 12 Monthly Passes $1, Youth: Ages 5-18 Single Ride $1.00 Proof of age may be required Light Rail Excursion Pass $2.00 Ages 4 and under ride free Day Pass $3.00 Bag of 5 Day Pass Tokens $7.50 Tokens sold only to public agencies, social services, schools, and other nonprofit organizations Monthly Pass $30.00 Summer Blast Pass $60.00 Good for June, July, August Prepaid 12 Monthly Passes $ of 10

256 13.b Fare Category Fares Requirements/Restrictions Senior/Disabled/Medicare: Single Ride $1.00 Light Rail Excursion Pass $2.00 Day Pass $3.00 Monthly Pass $30.00 Prepaid 12 Monthly Passes $ For Senior/Disabled/Medicare fares, the rider must be 65 years of age or older, or a certified disabled person. The following forms of identification shall be accepted as proof of eligibility => Valid Regional Transit Connection (RTC) Discount Card; Medicare Card; California Driver s License; California ID Card; DMV Disabled License Plate Registration; DMV Placard computer printout; Birth certificate; Passport (U.S. or foreign); Alien Registration Card; Valid Senior/Disabled/Medicare ID card from another California transit agency. 2 of 10

257 13.b II. Application of Fares A. Bus 1. All fares shall be paid upon boarding and shall be valid for one boarding unless otherwise designated. 2. Single Ride fares purchased using Clipper shall be valid for 90 minutes of travel, whether it be on a single route or a trip with multiple transfers across buses and light rail. When the passenger initially taps their card onto the reader to purchase a Single Ride fare, a 90-minute transfer will be stored onto their card. The passenger must subsequently tap their card each time they board a vehicle. Youth and Senior/Disabled/Medicare Single Ride fares shall be valid on all VTA operated service. Adult Single Ride fares shall be valid on VTA regular bus and VTA light rail services. An Adult passenger transferring to Express Bus service must pay a surcharge that is the difference between the Local and Express Bus fare if applicable. The 90 minute transfer window shall restart upon payment of a surcharge. 3. No change shall be given if fares are not paid in the exact amount of the appropriate fare in cash, pass, token or ticket. Combination of different fare media for a single ride is not allowed except Express Bus service surcharges may be paid in cash by persons holding Adult Day Passes or Adult Monthly Passes or valid passes or transfers from other agencies. Passengers with a valid Single Ride transferring to Express Bus service must pay the applicable surcharge with Clipper. 4. Valid transfers and passes from AC Transit, Altamont Commuter Express, BART, Caltrain, Capitol Corridor, Dumbarton Bridge Express, Highway 17 Express, Monterey-Salinas Transit, and SamTrans shall be accepted as specified in separate inter-operator fare and transfer agreements or the Clipper Business Rules, as provided in Section VII. B. Light Rail and Historic Trolley 1. Proof of fare payment shall be carried at all times while on light rail and historic trolley, and shall be presented to fare inspector upon request. 2. Single Ride tickets purchased from ticket vending machines at light rail stations shall be valid for 90 minutes after time of purchase, and shall allow for unlimited travel on light rail or historic trolley in any direction during these 90 minutes, unless otherwise designated. 3. Single Ride fares purchased using Clipper shall be valid for 90 minutes of travel, whether it be on a single route or a trip with multiple transfers across buses and light rail. When the passenger initially taps their card onto the reader to purchase a Single Ride fare, a 90-minute transfer will be stored onto their card. The passenger must subsequently tap their card each time they board a vehicle. Passenger must have a valid 3 of 10

258 13.b fare for the duration of their entire trip within the light rail system, including time spent within the paid area of stations or waiting at station platforms. Adult, Youth, and Senior/Disabled/Medicare Single Ride fares shall be valid on VTA regular bus and VTA light rail services. 4. Light Rail Excursion passes purchased from ticket vending machines at light rail stations are valid for 8 hours from time of purchase, and shall allow for unlimited travel on light rail or historic trolley in any direction during the 8 hours, unless otherwise designated. 5. Valid transfers and passes from AC Transit, Altamont Commuter Express, BART, Capitol Corridor, Caltrain, Dumbarton Bridge Express, Highway 17 Express, Monterey- Salinas Transit, and SamTrans shall be accepted as specified in separate inter-operator fare and transfer agreements or the Clipper Business Rules, as provided in Section VII. C. Pass Restrictions 1. Day Passes shall generally be available only on Clipper. For Clipper users, day passes shall be implemented as a daily fare maximum or cap for each rider fare category. Once the rider has incurred fare equal to the value of the Day Pass, no additional fare shall be charged for the balance of the service day. The Youth Day Pass, Senior/Disabled/Medicare Day Pass, and Express Day Pass shall be valid on all VTA operated service except Special Event Express Bus service. The Adult Day Pass shall be valid on all VTA operated service except Express Bus and Special Event Express Bus service. The Adult Day Pass shall be credited as base fare on Express Bus service but no credit shall be provided on Special Event Express Bus service. Paper day passes shall be available only in exchange for Adult or Youth Day Pass Tokens. 2. Light Rail Excursion Passes are not valid on bus service. 3. Monthly Passes shall be valid for unlimited rides from 12:01 a.m. on the first day of the month for which issued until 3:00 a.m. on the first day of the following month. The Youth Monthly Pass, Senior/Disabled/Medicare Monthly Pass, and Express Monthly Pass shall be valid on all VTA operated service except Special Event Express Bus service. The Adult Monthly Pass shall be valid on all VTA operated service except Express Bus and Special Event Express Bus service. The Adult Monthly Pass shall be credited as base fare on Express Bus service but no credit shall be provided on Special Event Express Bus service. 4. No refunds shall be made for purchased passes. Lost or stolen Day Passes or Monthly Passes shall not be replaced. 4 of 10

259 13.b III. Special Fares SmartPass: 1. Calendar year pass for unlimited trips on all VTA-operated fixed-route service except Express Bus service. The agreement period for Colleges and Universities will be defined based on the agreed upon academic year. 2. Pass Categories: a. Corporate Pass i. For-profit - A business, school, residential housing, development or corporation organized for the purpose of earning profits and enhancing the financial position of the owners. b. Not-For-Profit Pass i. Nonprofit An organization granted nonprofit status under state and federal tax exemptions. May also include not-for-profit schools. ii. Low-Income Housing Generally refers to properties required to provide units at below-market rents that are subsidized or discounted based on the tenant s income, unlike Market Rate Housing where rents are set by the landlord based on how much the unit is worth in the market. Some examples include: Low-Income Housing, Subsidized Housing and Senior Housing. iii. Government Agency a local, state or federal administrative unit of U.S. government. c. Collegiate Pass i. College & University Systems Colleges that belong to the California Community College system, San Jose State University, Santa Clara University, and Stanford University. 3. SmartPass Validity on Paratransit Service: a. Corporate and Not-For-Profit Passes for employers includes credit equal to an Adult Single Ride fare toward a paratransit One-Way Trip. No credit shall be provided for any other type of paratransit trip or service charge. b. Collegiate Pass for San Jose State University includes credit equal to Adult Single Ride fare toward a Paratransit One-Way Trip. No credit shall be provided for any other type of paratransit trip or service charge. 5 of 10

260 13.b 4. A minimum annual charge of $2,500 shall apply to all SmartPass contracts. 5. A residential community or development shall have a minimum 25 units to join SmartPass. 6. Fare Category and Fares: Service Level based on Location and Size Pass Category / Annual Rate Per Headcount Not-for-Profit Pass Corporate Pass Downtown San Jose Location 1 2,999 Headcount $ $ ,000+ Headcount $72.00 $72.00 Collegiate Pass* $38.00 Location Served by Bus & Light Rail 1 2,999 Headcount $ $ $ ,000+ Headcount $36.00 $36.00 Location Served by Bus Only 1 2,999 Headcount $72.00 $72.00 $ ,000+ Headcount $18.00 $18.00 Additional Service Option The per headcount premium below is added to regular SmartPass Annual Rate for access to VTA Express buses and additional contracted services with Dumbarton Express, Highway 17 Express, and Monterey-Salinas Transit Express operators. Per Headcount $21.60 $21.60 $9.00 *California Community Colleges rates lower than the Collegiate Pass rate shall increase by $5.00 per year, but shall not to exceed the Collegiate Pass rate. 6 of 10

261 13.b Fare Category Fares Requirements/Restrictions Convention Day Pass: Adult Convention Day Pass 75% of Adult Day Pass fare per day Valid for all VTA operated service except Express and Special Event Express Bus service. Available only to Conventions/Hotels in quantities of 100 or more. Youth Convention Day Pass 75% of Youth Day Pass fare per day Available only to Conventions/Hotels in quantities of 100 or more. Golden Getaway: 35 times Adult Day Pass price Available to Senior non-profit organizations Special Event Express Bus Service Single Ride Fare No less than $10.00 Applicable to Special Event Express Bus routes operated only for special events. No passes accepted on these routes. IV. Other Fares A. Promotional Fares The Director of Communications may institute a limited period of reduced or free fares for promotional purposes. B. Class Pass The Director of Public Affairs and Marketing may offer a free class pass for students grades K-12, valid for one field trip per semester per class. C. Emergency Response and Recovery Plans The General Manager, or designee, may institute a temporary period of free fares in response to emergency situations and conditions, such as natural disasters, described in VTA s Emergency Response and Recovery Plans. 7 of 10

262 13.b D. UPLIFT Program Per agreement between VTA and Santa Clara County, VTA may provide up to 2,400 quarterly stickers for an annual fee of $144,000. Such stickers shall be valid for fare only when affixed to a valid County-issued photo ID card including the title Santa Clara County Continuum of Care. County shall issue such cards and stickers only to homeless individuals receiving case management services. County may purchase additional transit stickers above the base quantity of 2,400 at a rate of $15.00 per quarterly sticker. UPLIFT stickers shall be honored on VTA services equal to a VTA Adult Monthly Pass for the period indicated on the sticker. The UPLIFT Program does not provide any benefit on ADA paratransit service. V. ADA Paratransit Fares Fare Category Fares Requirements/Restrictions One-Way Trip $4.00 For a disabled individual who is qualified for Paratransit Service. Companion Open Return Trip Second Vehicle Sent Equal to One-Way Trip ($4.00) 4 times One-Way Trip ($16.00) 4 times One-Way Trip ($16.00) A person other than a personal care attendant accompanying a qualifying disabled individual. A return trip is not dispatched until customer calls and requests it. Charge for a second vehicle dispatched because customer was not ready or at pick-up location at the scheduled time for the first vehicle dispatched. Same-Day Trip 4 times One-Way Trip ($16.00) Trip scheduled within the same day. Same-Day Trip Companion 4 times One-Way Trip ($16.00) A person, other than a personal care attendant, accompanying a qualifying disabled individual on a same-day trip. Extended Service Area 4 times One-Way Trip ($16.00) For service up to one mile beyond the ¾ mile ADA Paratransit Service Area. 8 of 10

263 13.b VI. Waived Fares A. Children under five years of age. B. Any peace officer, upon presentation of proper identification (badge or ID card). C. VTA employees, their dependents, and VTA retirees upon presentation of currently valid VTA issued identification card. D. Persons holding VTA-issued ADA paratransit photo ID cards may ride VTA fixed-route services except Special Event Express Bus service free of charge. If a personal care attendant is necessary for an individual to ride paratransit, then a personal care attendant may also ride free of charge when accompanying a qualifying person on fixed-route service. VII. Agreements With Other Organizations VTA may establish separate fare and transfer agreements/arrangements with AC Transit, BART, Monterey-Salinas Transit, SamTrans, Santa Cruz Metropolitan Transit District, the Dumbarton Bridge Express Service Consortium, the Peninsula Corridor Joint Powers Board (Caltrain), the Altamont Commuter Express Joint Powers Authority, the Capitol Corridor Joint Powers Authority, or any other organization providing transportation services within and through Santa Clara County. These agreements, along with the Clipper Business Rules, shall define reciprocal transfer arrangements with other operators to facilitate the transfer of passengers between systems. Such agreements are not affected by this resolution. VIII. Acceptance of Peninsula Corridor Joint Powers Board (Caltrain) Passes VTA shall allow passengers with any Caltrain monthly pass of greater value than the applicable VTA monthly pass (Adult, Youth, and Senior/Disabled) to ride free on all VTA regular bus and VTA light rail services. On VTA Express Bus service, Adult passengers with any Caltrain monthly pass of greater value than the applicable VTA monthly pass shall receive a base fare credit; Youth and Senior/Disabled/Medicare passengers with any Caltrain monthly pass of greater value than the applicable VTA monthly pass shall be allowed to ride free. No fare credit or free rides shall be provided for Caltrain monthly passholders on Special Event Express Bus service. 9 of 10

264 13.b PASSED AND ADOPTED by the Santa Clara Valley Transportation Authority Board of Directors on by the following vote: AYES: DIRECTORS NOES: DIRECTORS ABSENT: DIRECTORS XXX, Chairperson Board of Directors ATTEST: APPROVED AS TO FORM: ELAINE BALTAO, Secretary Board of Directors ROBERT FABELA General Counsel RESOLUTION NO. 10 of 10

265 13.c RESOLUTION NO. RESOLUTION ESTABLISHING RATES & FARES FOR SANTA CLARA VALLEY TRANSPORTATION AUTHORITY (VTA) RESOLVED that the following bus, light rail and paratransit rates and fares are hereby adopted by Santa Clara Valley Transportation Authority effective January 1, 2019, whereupon all previously adopted rates and fares are repealed, except as provided in Section VII. I. Basic Fare Structure Fare Category Fares Requirements/Restrictions Adult: Single Ride $2.50 Light Rail Excursion Pass $5.00 Day Pass $7.50 Bag of 5 Day Pass Tokens $18.75 Tokens sold only to public agencies, social services, schools, and other nonprofit organizations Monthly Pass $90.00 Prepaid 12 Monthly Passes $ Express Bus: Express fares are only applicable Express Bus Single Ride $5.00 for Adult riders. Express Day Pass $15.00 Express Monthly Pass $ Prepaid 12 Monthly Passes $1, Youth: Ages 5-18 Single Ride $1.25 Proof of age may be required Light Rail Excursion Pass $2.50 Ages 4 and under ride free Day Pass $3.75 Bag of 5 Day Pass Tokens $9.50 Tokens sold only to public agencies, social services, schools, and other nonprofit organizations Monthly Pass $35.00 Summer Blast Pass $70.00 Good for June, July, August Prepaid 12 Monthly Passes $ of 10

266 13.c Fare Category Fares Requirements/Restrictions Senior/Disabled/Medicare: Single Ride $1.25 Light Rail Excursion Pass $2.50 Day Pass $3.75 Monthly Pass $35.00 Prepaid 12 Monthly Passes $ For Senior/Disabled/Medicare fares, the rider must be 65 years of age or older, or a certified disabled person. The following forms of identification shall be accepted as proof of eligibility => Valid Regional Transit Connection (RTC) Discount Card; Medicare Card; California Driver s License; California ID Card; DMV Disabled License Plate Registration; DMV Placard computer printout; Birth certificate; Passport (U.S. or foreign); Alien Registration Card; Valid Senior/Disabled/Medicare ID card from another California transit agency. 2 of 10

267 13.c II. Application of Fares A. Bus 1. All fares shall be paid upon boarding and shall be valid for one boarding unless otherwise designated. 2. Single Ride fares purchased using Clipper shall be valid for 90 minutes of travel, whether it be on a single route or a trip with multiple transfers across buses and light rail. When the passenger initially taps their card onto the reader to purchase a Single Ride fare, a 90-minute transfer will be stored onto their card. The passenger must subsequently tap their card each time they board a vehicle. Youth and Senior/Disabled/Medicare Single Ride fares shall be valid on all VTA operated service. Adult Single Ride fares shall be valid on VTA regular bus and VTA light rail services. An Adult passenger transferring to Express Bus service must pay a surcharge that is the difference between the Local and Express Bus fare if applicable. The 90 minute transfer window shall restart upon payment of a surcharge. 3. No change shall be given if fares are not paid in the exact amount of the appropriate fare in cash, pass, token or ticket. Combination of different fare media for a single ride is not allowed except Express Bus service surcharges may be paid in cash by persons holding Adult Day Passes or Adult Monthly Passes or valid passes or transfers from other agencies. Passengers with a valid Single Ride transferring to Express Bus service must pay the applicable surcharge with Clipper. 4. Valid transfers and passes from AC Transit, Altamont Commuter Express, BART, Caltrain, Capitol Corridor, Dumbarton Bridge Express, Highway 17 Express, Monterey-Salinas Transit, and SamTrans shall be accepted as specified in separate inter-operator fare and transfer agreements or the Clipper Business Rules, as provided in Section VII. B. Light Rail and Historic Trolley 1. Proof of fare payment shall be carried at all times while on light rail and historic trolley, and shall be presented to fare inspector upon request. 2. Single Ride tickets purchased from ticket vending machines at light rail stations shall be valid for 90 minutes after time of purchase, and shall allow for unlimited travel on light rail or historic trolley in any direction during these 90 minutes, unless otherwise designated. 3. Single Ride fares purchased using Clipper shall be valid for 90 minutes of travel, whether it be on a single route or a trip with multiple transfers across buses and light rail. When the passenger initially taps their card onto the reader to purchase a Single Ride fare, a 90-minute transfer will be stored onto their card. The passenger must subsequently tap their card each time they board a vehicle. Passenger must have a valid 3 of 10

268 13.c fare for the duration of their entire trip within the light rail system, including time spent within the paid area of stations or waiting at station platforms. Adult, Youth, and Senior/Disabled/Medicare Single Ride fares shall be valid on VTA regular bus and VTA light rail services. 4. Light Rail Excursion passes purchased from ticket vending machines at light rail stations are valid for 8 hours from time of purchase, and shall allow for unlimited travel on light rail or historic trolley in any direction during the 8 hours, unless otherwise designated. 5. Valid transfers and passes from AC Transit, Altamont Commuter Express, BART, Capitol Corridor, Caltrain, Dumbarton Bridge Express, Highway 17 Express, Monterey- Salinas Transit, and SamTrans shall be accepted as specified in separate inter-operator fare and transfer agreements or the Clipper Business Rules, as provided in Section VII. C. Pass Restrictions 1. Day Passes shall generally be available only on Clipper. For Clipper users, day passes shall be implemented as a daily fare maximum or cap for each rider fare category. Once the rider has incurred fare equal to the value of the Day Pass, no additional fare shall be charged for the balance of the service day. The Youth Day Pass, Senior/Disabled/Medicare Day Pass, and Express Day Pass shall be valid on all VTA operated service except Special Event Express Bus service. The Adult Day Pass shall be valid on all VTA operated service except Express Bus and Special Event Express Bus service. The Adult Day Pass shall be credited as base fare on Express Bus service but no credit shall be provided on Special Event Express Bus service. Paper day passes shall be available only in exchange for Adult or Youth Day Pass Tokens. 2. Light Rail Excursion Passes are not valid on bus service. 3. Monthly Passes shall be valid for unlimited rides from 12:01 a.m. on the first day of the month for which issued until 3:00 a.m. on the first day of the following month. The Youth Monthly Pass, Senior/Disabled/Medicare Monthly Pass, and Express Monthly Pass shall be valid on all VTA operated service except Special Event Express Bus service. The Adult Monthly Pass shall be valid on all VTA operated service except Express Bus and Special Event Express Bus service. The Adult Monthly Pass shall be credited as base fare on Express Bus service but no credit shall be provided on Special Event Express Bus service. 4. No refunds shall be made for purchased passes. Lost or stolen Day Passes or Monthly Passes shall not be replaced. 4 of 10

269 13.c III. Special Fares SmartPass: 1. Calendar year pass for unlimited trips on all VTA-operated fixed-route service except Express Bus service. The agreement period for Colleges and Universities will be defined based on the agreed upon academic year. 2. Pass Categories: a. Corporate Pass i. For-profit - A business, school, residential housing, development or corporation organized for the purpose of earning profits and enhancing the financial position of the owners. b. Not-For-Profit Pass i. Nonprofit An organization granted nonprofit status under state and federal tax exemptions. May also include not-for-profit schools. ii. Low-Income Housing Generally refers to properties required to provide units at below-market rents that are subsidized or discounted based on the tenant s income, unlike Market Rate Housing where rents are set by the landlord based on how much the unit is worth in the market. Some examples include: Low-Income Housing, Subsidized Housing and Senior Housing. iii. Government Agency a local, state or federal administrative unit of U.S. government. c. Collegiate Pass i. College & University Systems Colleges that belong to the California Community College system, San Jose State University, Santa Clara University, and Stanford University. 3. SmartPass Validity on Paratransit Service: a. Corporate and Not-For-Profit Passes for employers includes credit equal to an Adult Single Ride fare toward a paratransit One-Way Trip. No credit shall be provided for any other type of paratransit trip or service charge. b. Collegiate Pass for San Jose State University includes credit equal to Adult Single Ride fare toward a Paratransit One-Way Trip. No credit shall be provided for any other type of paratransit trip or service charge. 5 of 10

270 13.c 4. A minimum annual charge of $2,500 shall apply to all SmartPass contracts. 5. A residential community or development shall have a minimum 25 units to join SmartPass. 6. Fare Category and Fares: Service Level based on Location and Size Pass Category / Annual Rate Per Headcount Not-for-Profit Pass Corporate Pass Downtown San Jose Location 1 2,999 Headcount $ $ ,000+ Headcount $82.75 $90.00 Collegiate Pass* $40.00 Location Served by Bus & Light Rail 1 2,999 Headcount $ $ $ ,000+ Headcount $41.50 $45.00 Location Served by Bus Only 1 2,999 Headcount $82.75 $90.00 $ ,000+ Headcount $20.75 $22.50 Additional Service Option The per headcount premium below is added to regular SmartPass Annual Rate for access to VTA Express buses and additional contracted services with Dumbarton Express, Highway 17 Express, and Monterey-Salinas Transit Express operators. Per Headcount $24.75 $27.00 $9.00 *California Community College rates lower than the Collegiate Pass rate shall increase by $5.00 per year, but shall not to exceed the Collegiate Pass rate. 6 of 10

271 13.c Fare Category Fares Requirements/Restrictions Convention Day Pass: Adult Convention Day Pass 75% of Adult Day Pass fare per day Valid for all VTA operated service except Express and Special Event Express Bus service. Available only to Conventions/Hotels in quantities of 100 or more. Youth Convention Day Pass 75% of Youth Day Pass fare per day Available only to Conventions/Hotels in quantities of 100 or more. Golden Getaway: 35 times Adult Day Pass price Available to Senior non-profit organizations Special Event Express Bus Service Single Ride Fare No less than $10.00 Applicable to Special Event Express Bus routes operated only for special events. No passes accepted on these routes. IV. Other Fares A. Promotional Fares The Director of Communications may institute a limited period of reduced or free fares for promotional purposes. B. Class Pass The Director of Public Affairs and Marketing may offer a free class pass for students grades K-12, valid for one field trip per semester per class. C. Emergency Response and Recovery Plans The General Manager, or designee, may institute a temporary period of free fares in response to emergency situations and conditions, such as natural disasters, described in VTA s Emergency Response and Recovery Plans. 7 of 10

272 13.c D. UPLIFT Program Per agreement between VTA and Santa Clara County, VTA may provide up to 2,400 quarterly stickers for an annual fee of $144,000. Such stickers shall be valid for fare only when affixed to a valid County-issued photo ID card including the title Santa Clara County Continuum of Care. County shall issue such cards and stickers only to homeless individuals receiving case management services. County may purchase additional transit stickers above the base quantity of 2,400 at a rate of $15.00 per quarterly sticker. UPLIFT stickers shall be honored on VTA services equal to a VTA Adult Monthly Pass for the period indicated on the sticker. The UPLIFT Program does not provide any benefit on ADA paratransit service. V. ADA Paratransit Fares Fare Category Fares Requirements/Restrictions One-Way Trip $4.00 For a disabled individual who is qualified for Paratransit Service. Companion Open Return Trip Second Vehicle Sent Equal to One-Way Trip ($4.00) 4 times One-Way Trip ($16.00) 4 times One-Way Trip ($16.00) A person other than a personal care attendant accompanying a qualifying disabled individual. A return trip is not dispatched until customer calls and requests it. Charge for a second vehicle dispatched because customer was not ready or at pick-up location at the scheduled time for the first vehicle dispatched. Same-Day Trip 4 times One-Way Trip ($16.00) Trip scheduled within the same day. Same-Day Trip Companion 4 times One-Way Trip ($16.00) A person, other than a personal care attendant, accompanying a qualifying disabled individual on a same-day trip. Extended Service Area 4 times One-Way Trip ($16.00) For service up to one mile beyond the ¾ mile ADA Paratransit Service Area. 8 of 10

273 13.c VI. Waived Fares A. Children under five years of age. B. Any peace officer, upon presentation of proper identification (badge or ID card). C. VTA employees, their dependents, and VTA retirees upon presentation of currently valid VTA issued identification card. D. Persons holding VTA-issued ADA paratransit photo ID cards may ride VTA fixed-route services except Special Event Express Bus service free of charge. If a personal care attendant is necessary for an individual to ride paratransit, then a personal care attendant may also ride free of charge when accompanying a qualifying person on fixed-route service. VII. Agreements With Other Organizations VTA may establish separate fare and transfer agreements/arrangements with AC Transit, BART, Monterey-Salinas Transit, SamTrans, Santa Cruz Metropolitan Transit District, the Dumbarton Bridge Express Service Consortium, the Peninsula Corridor Joint Powers Board (Caltrain), the Altamont Commuter Express Joint Powers Authority, the Capitol Corridor Joint Powers Authority, or any other organization providing transportation services within and through Santa Clara County. These agreements, along with the Clipper Business Rules, shall define reciprocal transfer arrangements with other operators to facilitate the transfer of passengers between systems. Such agreements are not affected by this resolution. VIII. Acceptance of Peninsula Corridor Joint Powers Board (Caltrain) Passes VTA shall allow passengers with any Caltrain monthly pass of greater value than the applicable VTA monthly pass (Adult, Youth, and Senior/Disabled) to ride free on all VTA regular bus and VTA light rail services. On VTA Express Bus service, Adult passengers with any Caltrain monthly pass of greater value than the applicable VTA monthly pass shall receive a base fare credit; Youth and Senior/Disabled/Medicare passengers with any Caltrain monthly pass of greater value than the applicable VTA monthly pass shall be allowed to ride free. No fare credit or free rides shall be provided for Caltrain monthly passholders on Special Event Express Bus service. 9 of 10

274 13.c PASSED AND ADOPTED by the Santa Clara Valley Transportation Authority Board of Directors on by the following vote: AYES: DIRECTORS NOES: DIRECTORS ABSENT: DIRECTORS XXX, Chairperson Board of Directors ATTEST: APPROVED AS TO FORM: ELAINE BALTAO, Secretary Board of Directors ROBERT FABELA General Counsel RESOLUTION NO. 10 of 10

275 Agenda Item TAC #17 CAC #13 CTMA #9 PAC #15 VTA Fare Policy Review

276 Fare Policy Review Objectives Increase ridership Free VTA-to-VTA transfers Align Youth fare discounts with the region and Senior/disabled fare category Increase farebox recovery to enhance financial sustainability 2

277 Proposed Fare Adjustments Base Fare Increase Adult Single Ride fare increase from $2.00 to $2.25 in January 2018, and to $2.50 in January 2019 All associated fares would increase proportionately except paratransit which remains unchanged Youth Fares Align Youth Fares with Seniors/Persons with Disabilities Fares Enhanced benefit proposed to be funded in part by 2016 Measure B funds up to $1.5 million per year 3

278 Intra-Operator Transfers (VTA-to-VTA) Single Ride Fares on Clipper Valid for 90 minutes of travel Systemwide travel across buses and light rail trains Available only on Clipper Light Rail Single Ride tickets from Ticket Vending Machines Change validity period from 2 hours to 90 minutes 4

279 Fares for Low Income Riders Community Bus Fares Transit Assistance Program (TAP) Continue TAP for low income riders Propose utilizing 2016 Measure B funds up to $1.0 million per year Community Bus Fares Service converted to regular service and fare type no longer required 5

280 Eco Pass Changes Name Change & Pricing Structure Renamed to VTA SmartPass No longer valid on VTA s express bus routes Consolidation of Headcount Tiers in January 2018 Price set at higher of the two rates Existing Tiers ,999 3,000-14,999 15,000+ Proposed Tiers 1-2,

281 Eco Pass Changes (cont.) Pass Categories & 2 Year Price Increases Collegiate Pass Universities and community colleges to pay an annual rate regardless of service level or location SJSU 5% ($2) increase in Jan 2018, additional 5% ($2) increase in Jan 2019 Community Colleges - $5 increase per year until they reach SJSU price level Not-for-Profit Pass Nonprofits, Low-Income Housing, Government Agencies Consolidate tiers in January % increase starting January 2019 Corporate Pass For-profit organizations Consolidate tiers in January % increase starting January

282 14 Date: April 17, 2017 Current Meeting: May 10, 2017 Board Meeting: N/A BOARD MEMORANDUM TO: THROUGH: FROM: Santa Clara Valley Transportation Authority Citizens Advisory Committee General Manager, Nuria I. Fernandez Interim Director - Planning & Program Development, Carolyn M. Gonot SUBJECT: Development Review Quarterly Report for Jan-Mar 2017 FOR INFORMATION ONLY BACKGROUND: VTA s Development Review Program encompasses two separate, yet interrelated efforts to review and comment on development and transportation projects occurring in and adjacent to Santa Clara County: 1) the review of environmental documents and development proposals submitted by Member Agencies; and 2) the review of Transportation Impact Analysis (TIA) reports for proposed projects meeting the Congestion Management Program (CMP) TIA Guideline requirements. The objectives of the Development Review Program include improving land use/transportation coordination, promoting alternative travel modes, and encouraging a balanced approach to addressing congestion. To share information and foster an open dialogue on land use and development matters with Member Agencies, VTA produces quarterly reports highlighting two sets of projects and types of information: Projects Reviewed by VTA: For projects or environmental documents reviewed by VTA staff under the Congestion Management Program and Development Review Program in the past quarter, relevant VTA comments are summarized. Projects Approved by Local Agencies: For projects or environmental documents approved by local agencies in the past quarter, relevant VTA comments and agency responses or conditions of approval are summarized. DISCUSSION: The following discussion provides a summary of the January through March 2017 Development Review Quarterly Report. The summary highlights key projects and topics contained in the report, which is provided as Attachment A. The report includes a table summarizing all of the reviewed and approved projects, and a reference map showing the locations of these projects.

283 14 VTA commented on 34 projects between January and March The cities that received the most comment letters from VTA were San Jose with 18 projects, followed by Santa Clara with 9 projects. 23 of the 34 projects that VTA commented on involved environmental documents such as an Environmental Impact Report (EIR), Notice of Preparation (NOP), or Mitigated Negative Declaration. Five of the projects involved stand-alone TIA documents and the remainder consisted of site plan reviews and a Traffic Operations Analysis. 29 of the 34 items that VTA commented on were private development projects. The remainder consisted of two city-led planning efforts, one roadway project, one park project, and a regional clean air and climate protection plan. Seven projects which VTA previously commented on were approved by local agencies during this quarter. Key plans and documents that VTA reviewed and commented on during the past quarter included the following: Mariani s Inn, Residences and Senior Living, City of Santa Clara: The City of Santa Clara circulated a Notice of Preparation for 392 multi-family and senior residential units and 311-room hotel with an 8,000-square foot restaurant. VTA submitted a comment letter: o Supporting the land use intensification of the site, located along the El Camino corridor, and recommending upgrades to the existing immediately adjacent Rapid 522 bus stop; o Commending significant improvements to the pedestrian accommodations including transit supportive elements; o Requesting a cumulative analysis of congestion impacts on transit travel times that incorporates other nearby developments. Gateway Crossings, City of Santa Clara: The City of Santa Clara circulated a Notice of Preparation for up to 1,600 residential units and 215,000 square feet of commercial use near the future Santa Clara BART station. VTA submitted a comment letter: o Supporting the land use intensification of the site, located near significant regional transit options; o Recommending exceptional pedestrian and bicycle accommodations due to the project s proximity to the planned Santa Clara BART station; o Commenting that the draft site plan does not support walkability and connectivity to nearby amenities, and recommending modifying the street layout to form a gird network as described in the City s Station Area Focus Plan; o Recommending significant Transportation Demand Management (TDM) strategies to reduce auto trips, and encouraging future coordination between VTA and the City regarding the site access and configuration of the planned Santa Clara BART Station. The Grove at Glen Loma, City of Gilroy: The City of Gilroy circulated Site Plans for 112 single-family homes in south Gilroy. VTA submitted a comment letter: o Supporting improvements and connectivity from existing roadways to newly Page 2 of 3

284 14 constructed north-south roads; o Commending Gilroy for enhancing internal circulation within the development with paths, trails and roundabouts to connect with adjacent roadways and continuing to build a multi-use off street pathway along Santa Teresa Boulevard. As noted above, seven items that VTA previously provided comments on were approved during this past quarter. The following is a brief summary of key VTA comments and the local agency responses or conditions of approval on two of these items. The Graduate, City of San Jose: The City of San Jose circulated an Initial Study and EIR Addendum for 260 student housing units and 14,800 square feet of retail near the corner of South Second and San Carlos Streets. VTA submitted a comment letter: o Commending the land use intensification of the site, located in Downtown San Jose, in close proximity to multiple forms of transit; o Supporting the project s provision of 577 bike parking spaces, and recommending a bicycle parking reservation system to ensure efficient parking accommodations. o Recommending a comprehensive TDM program for the project. The project was approved by the Planning Director on March 22, N. Shoreline Blvd - Charleston East Google Development, City of Mountain View: The City of Mountain View circulated a Site Specific Traffic Analysis which provided supplemental analysis to the North Bayshore Precise Plan (NBPP) environmental analysis (certified December 2014) for 595,000 square feet of office space. VTA submitted a comment letter: o Commending the City for clearly documenting trip reductions measures outlined in the TDM program; o Supporting installation of dedicated cycletracks and clarifying how they will interact with existing bus stops along Charleston Road; o Requesting further definition and a timeline of how Transportation Improvement Projects identified in the NBPP will be implemented to mitigate project-specific impacts. The project was approved by the City Council on March 7, 2016, with conditions to adopt a stringent TDM program with third party monitoring that includes 50% reduction of peak trips and penalties for non-compliance. An additional condition includes the creation of a Capacity Management Plan to establish a baseline employee count for Google in the North Bayshore area that cannot increase until identified transportation improvements are constructed, including but not limited to the US 101/N.Shoreline Boulevard Off-Ramp Improvement Project. This baseline count will be monitored by a third party and reported to the City of Mountain View. VTA commends the City of Mountain View for this progressive measure to minimize automobile trips in the NBPP area. Prepared By: Brent Pearse Memo No Page 3 of 3

285 14.a VTA Development Review Program Quarterly Report January, February, March 2017

286 Development Review Project Summary 14.a Lead Agency BAAQMD 1 Map No. CMP ID Project Name/Location Project Description BAAQMD 1601 Clean Air Plan 2016 Document Type Comments this Quarter? Approved this Quarter? VTA Comment Topics Update to Clean Air Plan and Regional Climate Protection Strategy Draft Plan Y Transportation Control Measures City of Campbell 2 CM1701 In-Out Burger City of Gilroy 3 GI1702 3,800 s.f. fast food restaurant replace existing restaurant TIA NF, Scope of Work Food Performance Distribution Center 340,300 s.f. commercial distribution NOP NOP Y Y Pedestrian Accommodations; Bicycle Accommodations; Site Design; Intersection and Freeway Analysis & Mitigation Measures Pedestrian and Bicycle Accommodations; Transportation Impact Analysis (TIA) Report; Freeway Analysis; Truck Intensive Uses City of Gilroy 4 GI1701 The Grove at Glen Loma 112 single-family residences on 28 acres Site Plans Y Site Circulation City of Hale Avenue Extension and Hale Avenue from W. Main Avenue to Dewitt/Spring Avenue; Santa Teresa Corridor from Dewitt/Spring Avenue to Roadway Connectivity; Pedestrian and Bicycle Accommodations; Corridor Operations and Maintenance; Vehicle-Miles Traveled (VMT) Morgan Hill 5 MH1607 Santa Teresa Widening Watsonville Road DEIR Y Analysis; Relevant Plans City of Mountain View 6 MV El Camino Real 144-unit apartment development City of Mountain View 7 MV1606 City of Palo Alto 8 PA1401 Comprehensive Plan Update City of Palo Alto 9 PA Hanover Street City of San Jose 10 SJ1625 CEQA Checklist, Draft SSTA, TDM Report 2000 N. Shoreline Boulevard Office 595,000 s.f. office SSTA Y Evaluate two planning scenarios not previously covered in DEIR: 1) reduce job growth/modest increase in housing; 2) reduce job growth/robust increase in housing SDEIR Y Museum Place -180 Park Avenue 110,000 s.f. office/industrial to replace existing office Initial Study, Transportatio n Study 306 residential units, 209,395 s.f. office, 14,116 s.f. retail, 60,475 s.f. additional museum space DEIR, TOA Y Y Y Land Use; Pedestrian and Bicycle Accommodations; Transportation Demand Management Land Use Mix; Bicycle and Pedestrian Accommodations; Transit Accommodations; Transportation Demand Management/Trip Reduction; Roadway Congestion and Improvements Land Use; Congestion Analysis on Transit Travel Times; Transportation Demand Management, General, Transit Incentives; Freeway Impacts and Mitigation Measures; CMP Intersection and Mitigation Measures Pedestrian Accommodations and Bicycle Accommodations; Transportation Demand Management (TDM) and Trip Reduction; Transit Service; Bus Stop Improvements Land Use; Pedestrian Accommodations - Project Frontage; Pedestrian & Bicycle Accommodations - Midblock Crossing & Intersection Improvements; Pedestrian Accommodations - Site Circulation; Bicycle Accommodations - Bicycle Parking; Transportation Demand Management (TDM) & Trip Reduction VTA Development Review Quarterly Report Page 1 of 5 January, February, March 2017

287 Development Review Project Summary 14.a Lead Agency Map No. CMP ID Project Name/Location Project Description City of San Jose 11 SJ1716 St John 4th 186 residential units, 1172 s.f. retail City of San Jose 12 SJ Stevens Creek City of San Jose 13 SJ1717 The Graduate City of San Jose 14 SJ S. First Street City of San Jose 15 SJ Berryessa Gas Station City of San Jose 16 SJ W. Julian City of San Jose 17 SJ Senter Document Type TIA NF, Scope of Work Comments this Quarter? Replace 163,000 s.f. commercial/office with 244,000 s.f. office 11,500 square feet retail, and 500 residential units NOP Y 260 student housing units and 14,800 s.f. ground floor retail Replace 30,000 s.f. retail with 324 residential units and 10,000 s.f. retail Renovation and expansion of existing gas station including 3,212 s.f convenience store and 2,490 s.f. retail building Y Approved this Quarter? Initial Study, TOA Y Y TIA NF, Scope of Work 200 multi-family residential units and 40,000 s.f. of commercial uses, replacing TIA NF, 8 residential units and 25,000 s.f. light Scope of industrial Work Subdividing 124,800 s.f. of existing 133,635 s.f. industrial building into 52 industrial condominiums TIA NF Y Y VTA Comment Topics Land Use; Transportation Impact Analysis (TIA); Pedestrian and Bicycle Accommodations; Transportation Demand Management (TDM) and Trip Reduction; Intersection and Freeway Analysis & Mitigation Measures Land Use; Transportation Impact Analysis (TIA) Report; Pedestrian and Bicycle Accommodations; Congestion Impacts on Transit Travel Times; Roadway Connectivity; Transportation Demand Management (TDM) & Trip Reduction; Intersection and Freeway Analysis & Mitigation Measures; Bus Service Land Use; Pedestrian Accommodations and Access to Transit; Bicycle Accommodations; Transportation Demand Management (TDM)/Trip Reduction Land Use; Transportation Impact Analysis (TIA) Report; Pedestrian and Bicycle Accommodations; Transportation Demand Management (TDM) / Trip Reduction; Intersection and Freeway Analysis & Mitigation Measures; BART Silicon Valley Initial Study, Traffic Study Y Bus Stop Improvements Y Land Use; Transportation Impact Analysis (TIA) Report; Pedestrian Accommodations and Bicycle Accommodations; Transportation Demand Management (TDM) and Trip Reduction; BART Silicon Valley Extension Project; Intersection and Freeway Analysis & Mitigation Measures Pedestrian Accommodations and Bicycle Accommodations; Transportation Impact Analysis (TIA) Report; Transportation Demand Management/Trip Reduction; Intersection and Freeway Analysis & Mitigation Measures; Bus Stop Improvements VTA Development Review Quarterly Report Page 2 of 5 January, February, March 2017

288 Development Review Project Summary Lead Agency Map No. CMP ID Project Name/Location Project Description City of San Jose 18 SJ1707 Julian Industrial City of San Jose 19 SJ1703 King Ministorage City of San Jose 20 SJ1618 City of San Jose 21 SJ1526 Greyhound Residential - South side of Post Street between South Almaden Avenue and South San Pedro Street Volar Mixed Use Project Winchester Blvd Document Type Comments this Quarter? 44,762 s.f. of industrial uses on 3.05 gross acres Site Plans Y Approved this Quarter? 133,000 s.f. ministorage and 65,000 s.f. light industrial Initial Study Y Y 785 residential units and 20,000 s.f. retail on a 1.74-acre site DEIR Y 307 residential units, 52,200 s.f. retail/restaurant uses, four levels of below-grade parking on a 0.89-acre site DEIR Y City of San Jose 22 SJ1701 Calle Artis (Bus Stop) 84,648 s.f light industrial or R&D Site Plans Y Equinix Data - South of Via Del Oro, between San Ignacio Avenue and Great Oaks City of San Boulevard; and 6402 Santa 579,000 s.f. data center and electrical Jose 23 SJ1628 Teresa Boulevard substation Initial Study Y City of San Jose 24 SJ1627 Oakmont Assisted 94-unit residential care facility Initial Study Y City of San Jose 25 SJ1629 Senter Self-Storage 89,573 s.f. of self storage units Initial Study Y City of San Jose 26 SJ1507 City of San Jose 27 SJ N. Capitol Ave Mixed Use (Live/Work) SJSC Towers - 39 N 5th Street 190 multifamily residential units Initial Study, TIA 307 condominium units, 330 apartment units, 19,000 s.f retail on 1.4 acres Site Plans Y Y Y 14.a VTA Comment Topics Land Use; Pedestrian Accommodations and Access to Transit; Bicycle Accommodations; Construction Coordination with BART Silicon Valley Extension Project Pedestrian Accommodations and Access to Transit; Bicycle Accommodations; Bus Service; Evergreen East Hills Development Policy Land Use, Pedestrian Accommodations; Bicycle Accommodations; Transportation Demand Management - Transit Incentives Land Use; Pedestrian and Bicycle Accommodations; Congestion Impacts on Transit Travel Times; I-280/Winchester Boulevard Area TDP; Transportation Demand Management/Trip Reduction; CMP Intersection Impacts and Multimodal Improvement Plan; Bus Service Bus Service; Pedestrian Accommodations and Access to Transit; Site Design; Bicycle Accommodations Pedestrian Accommodations and Access to Transit; Land Use; Bicycle Accommodations; Transportation Demand Management (TDM)/Trip Reduction Pedestrian Accommodations and Access to Transit; Bicycle Accommodations; Transportation Demand Management (TDM)/Trip Reduction: Bus Service Pedestrian Accommodations and Access to Transit; Bicycle Accommodations; Bus Stop Improvements Land Use; Pedestrian and Bicycle Accommodations; Transportation Demand Management Transit Incentives Pedestrian Accommodations and Access to Transit; Bicycle Accommodations; Transportation Demand Management/Trip Reduction VTA Development Review Quarterly Report Page 3 of 5 January, February, March 2017

289 Development Review Project Summary 14.a Lead Agency Map No. CMP ID Project Name/Location Project Description Document Type Comments this Quarter? Approved this Quarter? VTA Comment Topics City of Santa Clara 28 SC1705 Gateway Crossings City of Santa 967 Warburton Avenue Clara 29 SC1703 Residential City of Santa Clara 30 SC1702 Reed and Grant Street Youth Sports Park City of Santa Clara 31 SC1704 McLaren Data 413,000 s.f. data center City of Santa Clara 32 SC1701 Mariani's Inn, Residences and Senior Living City of Santa Clara 33 SC1612 Tasman East Specific Plan City of Santa Clara 34 SC1603 Mission Great America City of Santa Clara 35 SC El Camino Residential Project Location and Land Use; Transportation Integration; Site Design; Transportation Impact Analysis (TIA) Report; Pedestrian and Bicycle Accommodations; CMP Facilities; BART Silicon Valley Extension; Transportation 1,400 to 1,600 residential units and 215,000 s.f. of commercial development NOP Y Demand Management/Trip Reduction; Bus Stop Improvements Planned Development Rezoning to accommodate 4 single-family homes Initial Study Y Bus Stop Improvements Public youth sports park to include community building, playing fields, and Initial Study, Pedestrian Accommodations and Access to other neighborhood amenities. Traffic Study Y Y Transit; Bicycle Accommodations Initial Study, Traffic Study Replace 11 buildings with 392 multifamily and senior residential units, 311- room hotel and 8,000 s.f. restaurant. NOP Y Y Pedestrian Accommodations; Bicycle Accommodations; Transportation Demand Management/Trip Reduction Land Use; Pedestrian Accommodations and Bicycle Accommodations; Site Design; Transportation Impact Analysis (TIA) Report; Cumulative Analysis of Congestion Impacts on Transit Travel Times; Transportation Demand Management/Trip Reduction; Intersection and Freeway Analysis & Mitigation Measures; Bus Service Project Location and Land Use/Transportation Integration; Tasman Corridor Complete Streets Study; Transportation Impact Analysis (TIA) Report; Pedestrian and Bicycle Accommodations; Potential Congestion Impacts on Transit Travel Times; Future Changes to the ACE/Capitol Corridor Great America Station; CMP Facilities; Transportation Demand Management (TDM)/Trip Reduction 4,500 dwelling units and 106,000 s.f. retail on 46 gross acres NOP Y Roadway improvements including bus stop improvements Site Plans Y Bus Stop Improvements, VTA Permits Land Use; Pedestrian/Bicycle Accommodations & Access to Transit; 10,000 s.f. commercial uses and 151 Transportation Demand Management - Transit apartment units Initial Study Y Incentives VTA Development Review Quarterly Report Page 4 of 5 January, February, March 2017

290 Development Review Project Summary 14.a Lead Agency Map No. CMP ID Project Name/Location Project Description Document Type Comments this Quarter? Approved this Quarter? VTA Comment Topics City of Santa Clara 36 SC1614 County of Santa Clara 37 CO1602 Cordoba Center Building V Data Center Northwestern Parkway, south of Central Expressway 69,000 s.f. data center Initial Study Y 9,000 s.f. mosque and 14,500 s.f. multiuse building on a 16-acre site NOP Y Pedestrian Accommodations and Access to Transit, Bicycle Accommodations; Transportation Demand Management (TDM) Pedestrian Accommodations and Access to Transit; Site Circulation; Bicycle Accommodations; Transportation Impact Analysis (TIA); Transportation Demand Management (TDM)/Trip Reduction VTA Development Review Quarterly Report Page 5 of 5 January, February, March 2017

291 Development Review Projects January - March a 101 Hill «0!P 5!!( 522 Palo Alto 9! 280 6! Los Altos Los Altos Hills Miles 37!!P 101 9!( 522 South County 7! Mountain View 85 ÿ Sunnyvale!( 522 Cupertino 17 ÿ 237 ÿ Campbell Saratoga Monte Sereno ! 22 34!! ! 15! 26! 31! !!! ! San Jose!( 27!! ! 21! 25! 17! Santa Clara 2! Milpitas ÿ 85 ÿ 19!!( !!!P!( ! Projects Within Santa Clara County BART Berryessa Extension Caltrain Rapid 522!! VTA Light Rail Los Gatos «0 152 ÿ 1 2 Miles Gilroy!P 4! 3! 152 ÿ Countywide/Citywide Plans Comprehensive Plan Update (Palo Alto)!( 8!( 1 Clean Air Plan 2016 (Bay Area Air Quality Mgmt. District)