CAPITAL PROGRAM COMMITTEE AGENDA

Transcription

1 CALL TO ORDER 1. ROLL CALL CAPITAL PROGRAM COMMITTEE Thursday, June 28, :00 PM VTA Conference Room B North First Street San Jose, CA AGENDA 2. Welcome remarks from the General Manager/CEO, Nuria I. Fernandez. 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. ORDERS OF THE DAY 5. ACTION ITEM - Conduct voting to determine the Committee s vice chairperson for calendar year CONSENT AGENDA There are no items under the Consent Agenda. REGULAR AGENDA 6. DISCUSSION ITEM - Receive a presentation and provide input on the proposed enhancement of VTA's Capital Program planning process. 7. INFORMATION ITEM - Receive a presentation on the VTA Strategic Plan and its relationship to the Capital Program Planning process. 8. INFORMATION ITEM - Receive a presentation on VTA's Short-Range Transit Plan planning process.

2 Santa Clara Valley Transportation Authority Capital Program Committee June 28, INFORMATION ITEM - Receive a presentation on VTA's Transit Asset Management, State of Good Repair, and Enterprise Asset Management System Processes. OTHER ITEMS 10. Items of Concern or Referral to Administration. 11. Review Committee Work Plan. (Flynn) 12. Committee Staff Report. (Flynn) Discuss future meeting dates. (Verbal Report) 13. Chairperson's Report. (Carr) 14. Determine Consent Agenda for the August 2, 2018, Board of Directors Meeting. 15. ANNOUNCEMENTS 16. 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 or visit us on (408) : 中文 / Español / 日本語 / 한국어 / tiếng Việt / Tagalog. Disclosure of Campaign Contributions to Board Members (Government Code Section 84308) In accordance with Government Code Section 84308, no VTA Board Member shall accept, solicit, or direct a contribution of more than $250 from any party, or his or her agent, or from any participant, or his or her agent, while a proceeding involving a license, permit, or other entitlement for use is pending before the agency. Any Board Member who has received a contribution within the preceding 12 months in an amount of more than $250 from a party or from any agent or participant shall disclose that fact on the record of the proceeding and shall not make, participate in making, or in any way attempt to use his or her official position to influence the decision. A party to a proceeding before VTA shall disclose on the record of the proceeding any contribution in an amount of more than $250 made within the preceding 12 months by the party, or his or her agent, to any Board Member. No party, or his or her agent, shall make a contribution of more than $250 to any Board Member during the proceeding and for three months following the date a final decision is rendered by the agency in the proceeding. The foregoing statements are limited in their entirety by the provisions of Section and parties are urged to consult with their own legal counsel regarding the requirements of the law. Page 2

3 Santa Clara Valley Transportation Authority Capital Program Committee June 28, 2018 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 Monday, Tuesday, and Wednesday prior to the meeting. This information is available on VTA s website at and also at the meeting. NOTE: THE BOARD OF DIRECTORS MAY ACCEPT, REJECT OR MODIFY ANY ACTION RECOMMENDED ON THIS AGENDA. Page 3

4 5 Date: June 19, 2018 Current Meeting: June 28, 2018 Board Meeting: N/A BOARD MEMORANDUM TO: THROUGH: FROM: Santa Clara Valley Transportation Authority Capital Program Committee General Manager, Nuria I. Fernandez Board Secretary, Elaine Baltao SUBJECT: Elect Committee Vice Chairperson for 2018 Policy-Related Action: No Government Code Section Applies: No ACTION ITEM RECOMMENDATION: Conduct voting to determine the Committee s vice chairperson for calendar year BACKGROUND: The VTA Administrative Code has established board standing committees to review items in detail and provide recommendations to the full Board on matters within their respective assigned areas of responsibility. The five board standing committees are: Administration and Finance (A&F); Congestion Management Program and Planning (CMPP); Governance and Audit (G&A); Capital Program Committee (CPC); and Safety, Security, and Transit Planning and Operations (SSTPO). The Administrative Code specifies that the Board chairperson annually nominates for Board approval the members and chairpersons for all standing committees of the Board except for Governance & Audit. The Board approves these appointments at its first meeting of the calendar year. Standing committee chairpersons serve a one-year term of office coinciding with the calendar year. DISCUSSION: The Board Rules of Procedure Code requires each Board standing committee to, at its first meeting of the calendar year, elect from its membership a vice chairperson for the year. The vice chairperson performs the duties of the chairperson in the event of the chairperson s absence or inability to act, and while so acting has all the authority of the chairperson. The vice chairperson position serves a one-year term, which coincides with the calendar year and also the committee

5 5 chairperson s term. The vice chairperson is eligible for election to successive terms. Only members, not alternates, are eligible to serve. Generally, the committee chairperson asks for volunteers interested in serving in the position or for nominations by other committee members. The affirmative vote of a majority of the CPC s total authorized membership (minimum four out of the six positions) is required to elect the vice chairperson. The term of office commences immediately following completion of the voting. FISCAL IMPACT: There is no financial impact. Prepared by: Stephen Flynn, Sr. Policy Analyst Memo No Page 2 of 2

6 6 Date: June 20, 2018 Current Meeting: June 28, 2018 Board Meeting: N/A BOARD MEMORANDUM TO: THROUGH: FROM: SUBJECT: Santa Clara Valley Transportation Authority Capital Program Committee General Manager, Nuria I. Fernandez Director - Planning & Programming, Chris Augenstein Overview of Proposed Enhanced VTA Capital Program Planning Process FOR INFORMATION ONLY BACKGROUND: Soon after joining the organization, VTA GM/CEO Nuria Fernandez recognized that VTA did not have a board standing committee that focused on the organization s capital program. Based on her extensive experience in the transportation field, she knew that a board committee focused on strategic capital planning and priority setting is both a best practice and good governance, and the lack thereof hinders VTA s ability to fully achieve its goals, both operationally and financially. She recommended establishment of what is now the Capital Program Committee (CPC). The Board approved creation of this committee in December The CPC s purpose is: To provide Board-level policy direction on the capital program Determine capital priorities Ensure that projects in the capital program align with VTA s strategic objectives, and Recommend the capital program for Board approval To optimize the value of the CPC to the Board and VTA and to ensure the committee is provided with the information necessary for it to determine capital priorities, GM/CEO Fernandez initiated an internal process to help charter the CPC and also determine what information the committee requires to fulfill its duties. It should be noted that she had previously identified that the Board needs but does not currently have a comprehensive view of VTA s capital needs; this missing element has been noted by several Board members. To assist with chartering the CPC and refining VTA s existing capital planning process to provide the information needed by the CPC, VTA engaged the services of transportation consulting firm CH2M, which is now known as Jacobs. The Jacobs team is led by Joe Speaks, Senior Consultant, with key technical assistance from Amy Kaufman, Senior Consultant Associate.

7 6 DISCUSSION: VTA staff and the Jacobs team have spent most of the last year examining VTA s current capital planning processes. They identified gaps while noting where best practices should be incorporated. They considered actions needed to efficiently adjust and merge the existing processes into a unified capital program capable of providing the CPC and Board with the needed comprehensive view of VTA s strategic capital needs. This is a complicated and extensive undertaking involving a large number of key VTA staff assisted by and utilizing the expertise of the Jacobs team. Joe Speaks from Jacobs will provide context on the current capital planning process and provide an update on the efforts to date, the key gaps identified in VTA s capital planning process, as well as the recommendations for going forward. He will be assisted by Stephen Flynn, the VTA project manager, as well as other key VTA staff. Prepared By: Stephen Flynn, Sr. Policy Analyst Memo No Page 2 of 2

8 Agenda Item #6 VTA Capital Program Committee (CPC) Strategic, Comprehensive Capital Program Process June 28, 2018

9 Purpose of CPC Increase Board-level awareness of the size, complexity, diverse nature, and challenges of VTA capital program Set capital priorities provide policy direction at the board level Review staff recommended capital program to help ensure strong, clear alignment with Strategic Plan Provide strategic direction and approvals at a program level (e.g., vehicles), rather than ongoing oversight of existing projects Serve as a transparent forum for board and public input on Capital Program Guide the enhancement/evolution of the VTA Capital Program process 2

10 Key Topics Current Capital Program Practices, Evolving Process CPC Roles and Responsibilities Capital Planning Cycle and Timeline 3

11 Key Objectives of Enhanced Capital Program Process 1. Strengthen linkage of the capital program to the VTA Strategic Plan and specific business objectives. 2. Provide Board with a comprehensive policy-level overview of the VTA Capital Program processes across all VTA divisions and responsibilities. 3. Set policy-driven capital priorities that achieve business objectives. 4. Ensure VTA s planning processes drive the comprehensive capital program not required regulatory documents. 5. Clarify capital program processes confirm points of input and approval from Board and CPC. 6. Highlight impacts of capital project decisions on the operating budget and vice versa. 7. Highlight unmet capital needs. 4

12 Current Key VTA Planning Activities VTA Planning Report Timeline VTA Strategic Plan ( ) Revised every 5 years Valley Transportation Plan (VTP) 2040 Revised every 5 years Short Range Transportation Plan (SRTP) Updated every 2 years Congestion Management Plan (CMP) Updated every 2 years Technology Strategic Plan 2016 Revised every 5 years Strategic Plan guides overall direction and priorities of VTA to reach its goals VTP 2040 (CTP) is comprehensive long-range multimodal planning effort; helps informs MTC s Regional Transportation Plan key time period revisions SRTP provides key input to VTA s biennial budget process (also MTC requirement) CMP is comprehensive transportation improvement program among local jurisdictions (VTA as the CMA for Santa Clara County) CIP (part of the CMP) projects ready for funding commitments, 7-year horizon Two-year (biennial) budget Primary recurring activity that sets spending priorities Capital portion of biennial budget is supported and evaluated by internal (staff) Capital Committee (CIPOC) 5

13 One VTA, One Mission Diverse Responsibilities VTA Comprehensive Capital Planning Transportation Authority - Implementing Transportation Sales Tax Measures - Highways/Express Lanes Transit Agency - SRTP Congestion Management Agency - VTP (CTP) - CMP (CIP) 6

14 Team Recommendations Overall: Enhance and clarify current VTA capital planning process to provide CPC and Board with a comprehensive, strategic view of VTA s entire capital program so fully-informed Board-level policy direction can be provided to staff. Recommended Capital Program process enhancements: 1) Develop a comprehensive, unconstrained 10-year Capital Needs List 2) Further integrate asset management principles and strategic priorities to develop a fiscally-constrained five-year Capital Plan (CAP5) that unites and applies VTA s strategic vision. 3) Implement minor adjustments to ensure all current VTA planning processes align with overarching strategic plans for the organization to achieve its goals. Required regulatory activities are to be derived from the Comprehensive Capital Plan. 7

15 Recommended Comprehensive Capital Program Planning Process VTP CMP CIP SRTP Budget 8

16 Team Recommendations (cont.) Recommended Capital Program Committee responsibilities: A. Review 10-year Capital Needs List - Ensure that projects are identified to advance all of VTA s strategic objectives B. Reaffirm project evaluation criteria Use asset management principles and strategic priorities to provide policy foundation for evaluating projects for inclusion in the CAP5. Potential examples include: i. Safety and Security Enhancement ii. Transit System Preservation iii. Trip Capacity Expansion iv. Operating Cost Containment v. Legal / Legislative Compliance vi. Transportation Access / Equity vii. Environmental Sustainability C. Review, refine and evaluate staff-recommended CAP5 for both alignment with Strategic Plan and fiscal constraint 9

17 Team Recommendations (cont.) Recommended Capital Program Committee responsibilities (cont.): D. Recommend Board approval of the CAP5 E. Review and recommend Board approval of the capital element of the biennial budget, ensuring aligns with the CAP5 as well as current conditions F. Review and consider Unmet Capital Needs Understand how unfunded projects impact strategic objectives and operating costs and the relationship to the structural deficit 10

18 Recommended Comprehensive Capital Program Planning Process Recurring 2-year Cycle 10-Year Capital Needs CAP5 2-Year Budget 2-6 Months 6-10 Months 2-6 Months 11

19 Questions? 12

20 7 Date: June 15, 2018 Current Meeting: June 28, 2018 Board Meeting: N/A BOARD MEMORANDUM TO: THROUGH: FROM: SUBJECT: Santa Clara Valley Transportation Authority Capital Program Committee General Manager, Nuria I. Fernandez Director - Planning & Programming, Chris Augenstein Overview of VTA Strategic Plan FOR INFORMATION ONLY BACKGROUND: In December 2016, the Santa Clara Valley Transportation Authority (VTA) Board of Directors approved the updated Strategic Plan for VTA. The updated plan is the result of an 18-month process that included a review of VTA s mission, vision and value statements as well as input from employees, customers, advisory committees and the Board of Directors. The Strategic Plan establishes the foundation for VTA to help lead Silicon Valley into a more successful and sustainable future, provide the framework for its two-year budgets, and provide overarching guidance for all aspects of the agency s operations and management. The plan also establishes business lines and action values to ensure everyone is working together to achieve common goals. DISCUSSION: The Plan establishes VTA s Mission, Vision, and Values, and provides a framework to tie everyday work into the overall direction and priorities of the agency. The Strategic Plan is comprised of the following sections: A. Introduction B. How to Use this Plan C. Mission D. Vision E. Core Values F. Action Values G. Great People H. Business Lines I. Outcome Statement

21 7 The full Strategic Plan is available at < VTA will provide the committee with an overview of the Strategic Plan and how the plan will help guide the work of the Capital Program Committee. Prepared By: Scott Haywood Memo No Page 2 of 2

22 Item #7 Strategic Plan Capital Projects Committee June 28, 2018

23 Strategic Plan Overview Plan adopted in December 2016 Included robust analysis and input from employees, member agencies, Board Members and public Provides framework for VTA Staff & Board of Directors 2

24 Strategic Plan Overview Strategic Plan is comprised of the following: Mission Vision Values Business Lines 3

25 Mission & Vision Statements Solutions that move you. To innovate the way Silicon Valley moves. 4

26 Values Core Values Safety Integrity Quality Sustainability Diversity Accountability Action Values Creativity Collaboration Leadership 5

27 Business Lines Faster Frequent Reliable Transit Delivering Projects & Programs Transportation System Management 6

28 Capital Projects Committee & Strategic Plan Strategic Plan will help guide committee members. Provide vision for capital program and explain how capital projects support the Strategic Plan. 7

29 Capital Projects Committee & Strategic Plan When evaluating the Capital Program, consider the following: Is program consistent with mission and vision? Do the merits of the program follow the core and action values? Does the program fit into one or more of VTA s business lines? 8

30 Capital Projects Committee & Strategic Plan Evaluate the operating costs of capital projects. Will the on-going operating and maintenance costs support the mission, vision, values and business lines? 9

31 Questions? 10

32 8 Date: June 21, 2018 Current Meeting: June 28, 2018 Board Meeting: N/A BOARD MEMORANDUM TO: THROUGH: FROM: SUBJECT: Santa Clara Valley Transportation Authority Capital Program Committee General Manager, Nuria I. Fernandez Director - Planning & Programming, Chris Augenstein Overview of Short-Range Transit Plan (SRTP) Process FOR INFORMATION ONLY BACKGROUND: The Metropolitan Transportation Commission (MTC) requests that each transit agency in their jurisdiction produce a Short Range Transit Plan (SRTP) on a biennial basis. The SRTP documents each agency s transit service and facilities and provides a 10-year forecast of capital and operating revenues and expenses. The purpose of the SRTP is to demonstrate that agencies are competently managing their transit services and that future expenses can be funded by projected revenues. While MTC prefers that agencies report balanced budgets, SRTPs can highlight funding shortfalls that may be addressed with regional funds or other to be determined sources. Beyond satisfying MTC s request, the update of the SRTP provides an opportunity for VTA to evaluate its own financial trajectory and consider future priorities. It also requires coordination between the financial planning elements of VTA and the service delivery elements, helping align all parts with the agency s financial reality. DISCUSSION: VTA is updating its SRTP for the FY timeframe and anticipates seeking Board adoption in fall The document is broken into two main sections: a documentation of VTA s transit program and policies, and revenue and expense projections.

33 8 Transit Service/Operations The 2018 SRTP documents VTA s current transit service as well as the Next Network service plan that is currently projected to be implemented in The document also covers VTA s new fare policy (implemented January 2018), new Transit Service Guidelines and accompanying Transit Performance Monitoring Program (adopted April 2018) and the state of VTA s vehicle fleet. A few key considerations regarding the transit program include: Several VTA routes do not meet current ridership thresholds to justify continued operation The recently Board-adopted Transit Service Guidelines set a minimum standard of 15 boardings per hour to justify continued operation. About half of VTA s current routes fail this standard. The Next Network redesign of the transit network will adjust routes to respond to changes in land use and travel demand, decrease service hours on low-performing routes and decrease service levels on some cost-inefficient peak-period services. Should ridership on routes continue to fall short of minimum thresholds after the redesigned network is implemented, the Board of Directors may choose to discontinue service on those routes. VTA transit is getting slower, less appealing to riders and more expensive to operate When transit travel speeds decline, VTA must add buses or trains to routes to maintain the same frequency of service. This increases the cost of providing the service while the service becomes less attractive to riders. Over the past 30 years, VTA travel speeds have declined by about 20 percent and speed declines on high-ridership routes have been more precipitous. For example, since 1995, travel speeds on Route 22-VTA s highest ridership route-have declined by 34 percent and the cost of operating service has risen by 47 percent. If current trends of 1.5 % annual declines continue, VTA will incur about $5 million dollars of additional inefficiency each year. If VTA could return to the average speeds from 1988, it could operate the same miles of service as today for $70 million less. Addressing declining speeds will require a coordinated effort between VTA and Santa Clara County cities to improve transit priority. Transit service levels are dependent on available operations funding Transit operating levels (measured in hours of service) are dependent on available funding and, as such, are difficult to project beyond the current budget cycle (ending June 30, 2019). Given impending union negotiations and the ongoing work of VTA s Ad Hoc Financial Stability Committee, there is additional uncertainty regarding the number of service hours VTA will be able to fund in the near future, let alone the next 10 years. As such, the SRTP projects no change to service hours over the next decade. Page 2 of 4

34 8 Core Capital Program VTA s Core Capital Program funds maintenance and replacement of VTA facilities and vehicle purchases. Typically, the cost of all the projects in the Core Capital Program exceeds the revenues that are projected to be available. This results in some projects, maintenance or vehicle purchases being deferred or assigned to an unfunded tier. Presently, VTA estimates the cost of catching up on these deferments to total about $500 million. Funding challenges VTA does not have a dedicated funding source for the local portion of the Core Capital Program. While VTA strives to maximize opportunities for state, federal and other grant funding, those sources don t fully cover the costs of the capital program and most grants require local matching funds. Without a dedicated funding source, the local match for grants and non-grant funded projects must compete for the same revenues used for operating the transit service. Deferring maintenance or vehicle purchases can ultimately be costly Deferring infrastructure maintenance may result in higher future repair costs and more service disruptions from vehicle breakdowns or emergency track repairs. While decisions to defer vehicle purchases can result in near-term savings for the Core Capital Program, they can result in increased operating costs in the Operating Program as aging vehicles, which demand more frequent and more expensive maintenance, are not retired. VTA s bus fleet is old VTA s bus fleet averages 10.6 years in age and the oldest buses are 20 years old. The expected lifespan of buses is about 12 years. Aging buses have higher maintenance costs, which drives hourly operating costs upward. The SRTP estimates that extending buses beyond the 12-year expected lifespan to the extent of VTA s current fleet increases operating costs by about $8 million per year. VTA s fleet planning suffers from uncertain funding, competing funding needs Most of VTA s current fleet purchases have come in binges due to sudden infusions of funding. 214 buses were purchased in using dot-com boom sales tax revenues, 90 buses were purchased in 2010 using American Reinvestment and Recovery Act funds and 102 buses were purchased in 2014 using State Proposition 1B funding. These three purchases account for 89% of VTA s active fleet. Eleven of the past 16 years witnessed zero bus purchases as eligible funding was put toward system maintenance. This uneven purchasing pattern and dependence on sporadic infusions of external funding sources is not ideal. It creates a boom and bust cycle in maintenance needs and midlife rebuilds. It also undermines VTA s ability to plan for vehicle purchases. The SRTP projects that if VTA can purchase 60 buses every two-year budget cycle over the next decade, it can return to a healthy and cost-effective fleet situation-but this will depend on funding availability and agency priorities in future budget cycles. Sixty hybrid-diesel buses cost about $50 million though costs could be 20% to 30% higher if VTA purchases electric buses. Page 3 of 4

35 8 It is unclear how VTA will afford a new light rail fleet VTA s 100-car light rail fleet will reach the end of its 30-year lifespan around Purchasing a new fleet of vehicles is estimated to cost about $500 million over four years. For context, VTA s FY 2019 Core Capital Program budget is $125 million. The SRTP does not allocate any funding to this expense. Federal grants and extra regional discretionary funding may be possible funding sources, but are not guaranteed and are unlikely to cover the entirety of this cost. Any grant would require a substantial local funding match. If a new light rail vehicle purchase is pursued, decisions about design specifications will need to begin in the mid-2020s with test vehicles arriving in the late 2020s. Measure A Program The Measure A Program consists of revenues from the 30-year 2000 Measure A sales tax as well as external funding that VTA has leveraged with Measure A funds. The current Measure A program consists of 14 projects and programs that are headlined by the BART Phase I and Phase II extensions and the Eastridge Light Rail Extension. Project expenditure dates are based on current revenues and project schedules. Prepared By: Adam Burger, Sr. Transportation Planner Memo No Page 4 of 4

36 Agenda Item #8 Short Range Transit Plan Overview Capital Program Committee June 28, 2018

37 Short Range Transit Plan Purpose Documents transit service and facilities Provides a 10-year revenue and expense projection MTC Interest in Short Range Transit Plan See if agencies can afford future expenses See if transit operating programs are sustainable Inform regional funding strategies 2

38 Short Range Transit Plan Contents Agency Structure Current and Next Network Transit Service Plans Vehicle Fleet Transit Facilities Fare Policy Service Monitoring Plan Revenue and Expense Projections for Operating, Capital Programs 3

39 Projected Transit Service Levels Bus Service Hours 1.6m 1.6m 1.6m 1.6m 1.6m 1.6m 1.6m 1.6m 1.6m Bus Service Miles 18.3m 18.1m 17.9m 17.7m 17.5m 17.3m 17.1m 17.0m 16.8m Bus Speed (MPH) LRT Service Hours 177k 177k 177k 179k 179k 179k 179k 179k 179k LRT Service Miles 2.38m 2.37m 2.36m 2.56m 2.55m 2.54m 2.53m 2.52m 2.51m LRT Speed (MPH)

40 Declining Bus Speeds 14.1 MPH MPH MPH MPH

41 Slowing Routes Require More Buses Buses needed for 15-minute service on Route MPH MPH MPH 15 Buses 18 Buses 22 Buses 6

42 Core Capital Program Budget Tier I Projects Funded by projected revenues Tier II Projects May include deferred projects May require additional outside funding May be needed, but not urgent May graduate to Tier I 7

43 Core Capital Program Budget Projected revenue over next 10 years 8

44 Core Capital Program Budget Projected revenue over next 10 years to be spent on Vehicles and Equipment Operations Facilities & Equipment Light Rail Way, Power & Signal Passenger Facilities Information Technology Miscellaneous 9

45 Core Capital Program Budget Projected revenue over next 10 years to be spent on Vehicles and Equipment Operations Facilities & Equipment Light Rail Way, Power & Signal Passenger Facilities Information Technology Miscellaneous Unassigned to projects 10

46 Core Capital Program Budget Projected revenue over next 10 years to be spent on Vehicles and Equipment Operations Facilities & Equipment Light Rail Way, Power & Signal Passenger Facilities Information Technology Miscellaneous Unassigned to projects 11

47 VTA Bus Purchase History Current active fleet (458 buses)

48 Maintenance and Fuel Cost per Mile VTA Bus Fleet Usage Each circle is an order of VTA buses. Size is proportional to miles operated. $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $ Bus Age 13

49 Maintenance and Fuel Cost per Mile VTA Bus Fleet Usage Each circle is an order of VTA buses. Size is proportional to miles operated. $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 Expected Bus Lifespan $ Bus Age 14

50 $350 Million Unassigned? Not Quite. Tier II Unfunded Projects Yet to be Determined Expenses in next 10 years 15

51 Long-Term Expense Projections are Difficult Past VTA Two-Year Budgets and SRTP Projected Two-Year Budgets $200 M $180 M $160 M $140 M $120 M $164 M $167 M $175 M $181 M $163 M $176 M $136 M $100 M $80 M 16

52 Long-Term Expense Projections are Difficult Past VTA Two-Year Budgets and SRTP Projected Two-Year Budgets $200 M Estimated Yet-to-be Identified Costs $180 M $160 M $140 M $120 M $164 M $167 M $175 M $181 M $163 M $176 M $136 M $100 M $80 M 17

53 9 Date: June 14, 2018 Current Meeting: June 28, 2018 Board Meeting: N/A BOARD MEMORANDUM TO: THROUGH: FROM: SUBJECT: Santa Clara Valley Transportation Authority Capital Program Committee General Manager, Nuria I. Fernandez Director - Planning & Programming, Chris Augenstein Overview of Overview of Transit Asset Management, State of Good Repair, and Enterprise Asset Management System Processes FOR INFORMATION ONLY BACKGROUND: The Transit Asset Management (TAM) Program was established as part of the Moving Ahead for Progress in the 21 st Century (MAP-21) transportation legislation. The program was continued in the Fixing America s Surface Transportation (FAST) act that followed. The Federal Transit Administration (FTA) issued their TAM final rule in July The intent of the TAM program is to create a strategic and systematic process of operating, maintaining, and improving public transportation capital assets effectively through the life cycle of such assets (49 U.S.C. 5326(a)(3)), so to keep transit assets in a state of good repair (SGR). State of Good Repair was defined in the TAM final rule as: when the evaluated asset (system, equipment, or component) is in a condition where/when it can continue to meet and perform adequately for the purpose to which it was acquired and be safely operated and maintained within the parameters set forth by the manufacturer. The program requires the preparation of a TAM plan, policy, and implementation procedures to demonstrate the commitment of the agency to the program. DISCUSSION: VTA has established a TAM program that encompasses a TAM Plan, a TAM Policy, and soon TAM Procedures. VTA is considered a Tier 1 agency and is required to include nine TAM planning elements in the TAM Plan: (1) asset inventory; (2) condition assessment; (3) decision tool; (4) investment priority; (5) TAM policies; (6) TAM implementation strategy; (7) action plan; (8) TAM level of effort; and (9) a continuous improvement program. Tier 2 agencies are required to include only the first four elements.

54 9 VTA uses the FTA developed assessment tool, TERM Lite, to identify the recommended investments in assets in five categories: (1) vehicles; (2) systems; (3) stations; (4) guideway elements; and (5) facilities. These recommendations are designed to prioritize expenditures of limited capital funds. TERM Lite also assesses the impact of the investment or the SGR backlog. VTA also recently undertook a comprehensive system requirements analysis to identify and evaluate potential Enterprise Asset Management (EAM) solutions. The purpose is to identify potential systems that would integrate information from VTA s multiple information systems into one integrated umbrella platform that focuses on managing assets throughout their lifecycle instead of just on maintenance management or work orders. This type of EAM would help VTA optimize its efforts towards data-driven decision-making and maximize the useful life of its capital assets. Completion of the analysis is projected for fall Prepared By: Bruce Abanathie, Principal Transportation Planner Memo No Page 2 of 2

55 Agenda Item #9 Transit Asset Management & State of Good Repair The How in Capital Planning Bruce Abanathie, MBA, PMP Principal Transportation Planner Grants Program Manager Asset Management Program

56 The Basics TAM and SGR: SGR is the Goal -TAM is the path to the goal TAM System defined as: ``a strategic and systematic process of operating, maintaining, and improving public transportation capital assets effectively through the life cycle of such assets.'' 49 U.S.C. 5326(a)(3). SGR defined as: The condition in which a capital asset is able to operate at a full level of performance. This means the asset: 1. Is able to perform its designed function, 2. Does not pose a known unacceptable safety risk, and 3. Its lifecycle investments have been met or recovered.

57 The Basics TAM and SGR: SGR is the Goal -TAM is the path to the goal MAP-21 established, and the FAST Act confirmed, the requirement that all recipients and subrecipients of FTA Chapter 53 funds develop a transit asset management program (system). Requires public transportation providers to develop and implement transit asset management (TAM) plans; plans must include: o o o Asset inventory Condition assessments of inventoried assets, Prioritized list of investments to improve the state of good repair

58 VTA Asset Inventory Center of VTA s Asset Management System Live Database; updated on an ongoing basis 4

59 Condition Assessments A rating of the inventoried assets e.g. age; condition rating; percentage of residual life; maintenance costs Ratings should be sufficiently detailed to monitor performance and plan capital investment Condition assessments may be collected at the individual or asset class level Condition assessments may include vulnerabilities to natural/climate hazards Condition assessments are required for assets owned, operated, or maintained Table 2-6. VTA Average SGR Condition Ratings by Asset Class Average SGR Condition Ratings* Guideway Elements 4.12 Good Facilities 3.26 Adequate Systems 3.33 Adequate Stations 3.66 Adequate Vehicles 2.94 Marginal VTA overall 3.62 Adequate cost-weighted average Source: VTA TERM Lite Model, 4/20/2016

60 Decision Making Tools TERM Lite TERM Lite: Analyzes assets in five categories, Assesses the reinvestment needs of a system using baseline inputs (priorities and percentages) from the user, Assess the backlog in state of good repair investment, Prioritizes expenditures based on the percentages applied to the priorities by VTA (in constrained funding ), Can be used to inform the budget for priorities in expenditures based on condition assessments and backlog of SGR. 6

61 TERM Lite Projections When funding is constrained TERM will: Prioritize expenditure of limited capital funds in five categories Assess the impact on the investment backlog Analysis at right assumes same spending as in SRTP

62 Enterprise Asset Management (EAM) Software VTA has embarked on the selection of an Enterprise Asset Management Software 1. A consultant to evaluate our business processes and section needs 2. The recommendation will consist of software specifications and capabilities. 3. We will use these to establish an RFP for the actual acquisition of a software solution. 8

63 QUESTIONS? 9

64 Capital Program Committee (CPC) Committee Work Plan 11 Doc ID Short Title 6580 Elect Committee Vice Chairperson for 2018 A 6614 Proposed Enhanced Capital Program Planning Process D 6615 Overview of Short-Range Transit Plan (SRTP) Process I 6616 Overview of VTA Strategic Plan I 6617 Overview of TAM, SGR and EAMS Processes I Determine Recurring CPC Meeting Schedule Proposed Capital Program Process Proposed 10-Year Capital Needs Report Layout Recommended Evaluation Process and Criteria for Staff Scoring of Proposed Projects Update CPC Charter and Responsibilities In Admin Code CPC 6/28 Board 8/2 CPC 2nd 2018 Meeting A A A Board (later in 2018) CPC 1st Meeting of 2019 Items for Future Consideration 2000 Measure A Semi-Annual Report I 2016 Measure B Semi-Annual Report I * VTP Highway Program Semi-Annual Report Effects of Ad Hic Financial Stability Recommendations on D Capital Program 6622 Next Steps in Innovating the Way Silicon Valley Moves D 6623 Potential Value of Dedicated VTA Innovation Fund D 6624 What Does It Mean for VTA to be "Transportation Authority" D A A I LEGEND: A = Action Item D = Discussion I = Information Item P = Presentation V = Verbal Report * = Proposed Revised: 6/21/2018