Celia G. Kupersmith, General Manager

Transcription

1 GOLDEN GATE BRIDGE HIGHWAY & TRANSPORTATION DISTRICT FISCAL YEAR 10/11 ADOPTED BUDGET Celia G. Kupersmith, General Manager Prepared by the Finance Office Joseph M. Wire, Auditor-Controller Jennifer H. Mennucci, Director of Budget & Programs Analysis Joanne M. Leone, Acting Director of Budget & Program Analysis Richard J. Driscoll, Budget & Program Analyst Alice Ng, Financial Management and Business Process Manager Gayle S. Prior, Director of Capital & Grant Programs Jennifer L. Raupach, Capital & Grant Programs Analyst Jeff M. Dion, Administrative Assistant Special thanks to the District Officers, the Deputy General Managers and their respective staff.

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3 The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the Golden Gate Bridge, Highway and Transportation District for its annual budget for the fiscal year beginning July 1, In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document, an operations guide, a financial plan and a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements and we are submitting it to GFOA to determine its eligibility for another award. 1

4 TABLE OF CONTENTS General Manager s Message... 7 District Organizational Chart The Golden Gate Bridge, Highway and Transportation District Profile The Budget Planning and Development Process FY 10/11 Adopted Budget Policies FY 10/11 Adopted Budget Overview Transit System Funding District Financial Situation Operating Budget Summary Operating Revenues Operating Expenses Capital Program Summary Bridge Division Profile Bridge Division Organizational Chart Bridge Division Status FY 10/11 Bridge Division Goals and Projects Changes From FY 09/10 Actual To FY 10/11 Adopted Budget Bridge Division Operating Budget Bridge Division Performance Statistics Operating Revenue as a Percentage of Total Operating Expense Bridge Division Capital Budget Bridge Division Personnel Summary by Department Bus Division Profile Bus Division Organizational Chart Bus Division Status FY 10/11 Bus Division Goals and Projects Changes From FY 09/10 Actual To FY 10/11 Adopted Budget Bus Division Operating Budget Bus Division Performance Measures Bus Division Capital Budget Bus Division Personnel Summary by Department Ferry Division Profile Ferry Division Organizational Chart Ferry Division Status FY 10/11 Ferry Division Goals and Projects Changes From FY 09/10 Actual to FY 10/11 Adopted Budget Ferry Division Operating Budget Ferry Division Performance Measures Ferry Division Capital Budget

5 Ferry Division Personnel Summary by Department District Division Profile District Division Organizational Charts District Division Status FY 10/11 District Division Goals and Projects Changes From FY 09/10 Actual to FY 10/11 Adopted Budget District Division Operating Budget District Division Capital Budget District Division Personnel Summary by Department Visitor Services and Concessions Profile FY 10/11 Visitor Services and Concessions Goals Changes From FY 09/10 Actual to FY 10/11 Adopted Budget Visitor Services and Concessions Operating Budget Visitor Services & Concessions Performance Statistics Visitor Services & Concessions Personnel Summary by Department APPENDICES Appendix A Reserves Table Appendix B Commercial Paper Appendix C FY 09/10 Capital Program Accomplishments Appendix D Grant Funding Sources Appendix E 10-Year Capital Requirements Appendix F Financial Plan Status Appendix G Five and Ten Year Financial Projection Appendix H Glossary Appendix I Supplemental and Statistical Data

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7 BUDGET OVERVIEW TABLE OF CONTENTS General Manager s Message... 7 District Organizational Chart The Golden Gate Bridge, Highway and Transportation District Profile The Budget Planning and Development Process FY 10/11 Adopted Budget Policies FY 10/11 Adopted Budget Overview Transit System Funding District Financial Situation

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9 GENERAL MANAGER S MESSAGE This coming year will be filled with great challenge and exciting celebration. Forty years ago, on August 15, 1970, the Bridge District began operating Golden Gate Ferry service between Marin County and San Francisco the start of a ferry service renaissance here in the Bay Area! Today, there are ferries operating from several communities throughout the Bay Area and more are coming. All this because forty years ago, the District took a leadership role in bringing back water-based transit services to San Francisco! Looking further ahead, in 2012, Golden Gate Transit will celebrate its 40th birthday in January and then there is the big celebration the Golden Gate Bridge turns 75 on May 27, Celebration planning is underway for both of these events. These anniversaries are a true testament to the long-term commitment this District and its employees have to our customers and community. On a more somber note, in the upcoming year we face severe fiscal challenges with a forecasted shortfall in funding totaling $132 million over the next five years. This shortfall is the result of several factors: the current recession which has led to reduced transit ridership, which in turn results in lower revenues to support Bus and Ferry services; relatively flat Bridge traffic; and, the District is helping fund Doyle Drive s reconstruction with a $75 million contribution. Given these fiscal challenges, the District s Board of Directors created a Financial Planning Advisory Committee in May 2009, and charged them with the task of addressing the District s five-year projected deficit of $132 million. The Committee s efforts culminated in the creation of The Financial Plan for Achieving Long-Term Financial Stability (Plan) which was approved by the full Board of Directors on October 30, A total of 33 different initiatives are identified in the Plan aimed at reaching fiscal stability within five years. They include aggressive cost-cutting measures as well as several revenue generating opportunities. If all are implemented and have the projected financial impact, they will fully address the shortfall and restore the District to a stable financial footing by FY 15/16. This Plan forms the basis upon which this year s budget was developed. FY10/11 Budget Summary The total FY 10/11 Adopted Budget of $236.7 million is 10% more than the FY 09/10 Adopted Budget which contained $215.4 million in spending proposals. This increase is due in part to increased activity on the Larkspur channel dredging project and ongoing Seismic retrofit efforts. In FY 09/10, a $1.6 million operating deficit was funded through District reserves in order to balance the expenses. The FY 10/11 Adopted Operating Budget will see a $7 million use of reserves to bridge the projected Operating Budget deficit. Our expenses are primarily funded through Bridge tolls, transit fares, 7

10 concessions, State and Federal funds, the Marin bus service contract and various investments. We have eliminated non-essential spending across the board, found significant efficiencies in the way we operate our services and frozen salaries for all represented staff in the Union Coalition as well as all non-represented staff and officers. This eighteen month salary freeze is in effect until January FY 09/10 Projects Completed and Underway Throughout these tough economic times, the District is proud that responsible budgeting and sound financial planning in FY 09/10 have allowed us to initiate, advance and complete projects such as: Issued the Final Environmental Impact Report and Environmental Assessment and Section 4(f) Evaluation with a Finding of No Significant Impact for the Golden Gate Bridge Physical Suicide Deterrent System Project with the Net System as the preferred alternative; Continued with construction on the Golden Gate Bridge Seismic Retrofit Phase IIIA, North Anchorage Housing and North Pylon. Lead remediation within the North Pylon is ongoing, while lead remediation within the Anchorage Housing is complete; Completion of a 2½ year project to re-coat all of the Bridge s 1,032 suspender ropes using an automated cleaning and coating system developed at the Golden Gate Bridge as well as traditional sky boxes ; Commenced construction on the Toll Plaza Pavement and Access Improvements Project. The employee parking lot, the East Visitors Area parking lot and the onand off-ramps at the East lot have been repaved with railing, signage and lighting installed. The entrances to the Toll Plaza Administration Building have also been reconstructed to comply with current accessibility standards; With the award of a $3 million National Science Foundation (NSF) grant this fiscal year, the District began the design phase to develop outdoor exhibits and to provide science, mathematics and engineering learning opportunities using the Bridge as the focal point as well as enhance the District s website to complement the outdoor activity; Achieved major progress on the Bridge s maintenance program for the North Approach Viaduct. As a result, structural maintenance and restoration is now proceeding with unprecedented efficiency, in all weather conditions and in full compliance with safety and environmental regulations; Commenced environmental studies and preliminary engineering for the Moveable Median Barrier Project; Modernize the Bus fleet with the purchase of 23 new replacement coaches and 16 new replacement paratransit vans; Seamless integration of the M.V. Napa into the Larkspur-San Francisco commute while the M.V. Del Norte was removed from service for repair and repowering; Final plans and specifications consistent with the regulatory approvals were completed and the construction contract was awarded to obtain approval to dredge the two-mile long navigational channel, turning basin and four lay-up berths at the Larkspur Ferry Terminal; 8

11 The construction of several smaller projects, including construction of the San Rafael Data Center and construction of the San Rafael Body Shop Roof Replacement and Solar Panels Installation; Designed plans and awarded the construction contract to replace the existing San Rafael Bus Facility Wash Rack Building which will include the installation of a new 60KW roof-top solar panel system; Successfully converted and upgraded the Hastus payroll processing system. In particular, the payroll processing of the approximately 280 Bus Operators has progressed from a manual to an automated system; Transitioned to full utilization of Clipper SM as the preferred method of payment on buses and ferries. TransLink transitioned to Clipper SM on June 16, 2010; Awarded the contract to develop conceptual designs, environmental studies and provide technical support for the Gangways & Piers project at the Larkspur, San Francisco and Sausalito Ferry Terminals; and, Successfully installed new 3-position bike racks on 113 buses in the fleet. The addition of the 3-position bike racks will help meet the growing demand of bicyclists on Golden Gate Transit buses. FY 10/11 Budget Year Priorities In the coming year we will continue to seek funding from all available sources to help us balance the budget. Scheduled for implementation this upcoming FY 10/11 are the following: The implementation of a carpool toll on July 1, 2010, now charges $3 for 2-axle vehicles with 3 or more passengers. Previously, such vehicles had crossed the Bridge without charge. This toll is expected to raise $1.2 million in FY 10/11. This additional revenue is reflected in the Adopted Budget; Reduce Golden Gate Transit (GGT) bus service by approximately 5.3%. The routes being proposed in this reduction are primarily commute routes which fall below the Board-adopted productivity standard of 20 regional passengers per trip or are duplicative with other GGT services that have capacity available. The implementation date would be no sooner than September 12, The package of proposed service reductions has an estimated five-year savings impact of $6 million; Continued pursuit of funding for the Seismic Retrofit Project s final phase of construction; Begin the purchase of access platforms to implement the Main Cable Re-Coating Project; Redeployment of the M.V. Del Norte (high-speed ferry) with new engines. This is significant, as we will have a spare high-speed vessel to place into service during mechanical difficulties or scheduled maintenance; Completion of engineering and repower/refurbishment for M.V. Napa and M.V. Golden Gate. Both vessels will be completely refurbished including new seating, installation of a new snack bar, replacement of deck coverings (tile and carpet) and a general upgrade of passenger amenities. Each vessel will also be retrofitted with new main engines, reduction gears and electrical generators; 9

12 Kick off a phased approach for bus stop assessment and management, beginning with development of standard graphics and look for stops, and upgrading signage in the San Francisco Financial District. The District will also partner with Marin Transit to identify a unified look for shared stops; Work on relocating the San Francisco midday parking lot to a new permanent site. This relocation will have many operational impacts such as bus parking, limited driver relief areas, and vehicle maintenance constraints since space will be limited; Maintain the over-the-road coach fleet with 30 new replacement coaches; Complete upgrades to the Larkspur Ferry Terminal which include new accessible restrooms for passengers, also refurbish the restrooms at the San Francisco Ferry Terminal; Lead and sponsor a Bay Area wide training exercise that will test the capacity of the ferry operators and other agencies in responding to a marine emergency; Provide Muir Woods shuttle service for Marin Transit for the sixth summer season; Carry on planning efforts for the 75th Anniversary of the Golden Gate Bridge; and, Continue planning and implementing programs to address the fiscal challenges facing the District by both increasing revenues and reducing operating costs. The road ahead is another full of challenges and hard decisions. As an organization dedicated to providing public transportation, we also realize the negative impact that inadequate funding will have on our District. We will do everything possible to ensure that our customers remain a high priority. In the face of these fiscal challenges confronting the District, we are continually advancing and completing critical projects with the help of dedicated Board members, officers and employees. Without the support of our excellent staff, the District would not be able to provide the high quality services we do, day in and day out. Celia G. Kupersmith General Manager 10

13 DISTRICT ORGANIZATIONAL CHART Board of Directors Board Committees Auditor/ Controller Attorney General Manager District Secretary District Engineer Deputy General Manager - Administration & Development Deputy General Manager - Bridge Deputy General Manage r - Bus Deputy General Manager - Ferry 11

14 THE GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT PROFILE The Golden Gate Bridge, Highway and Transportation District ("District") is a special district of the State of California which operates and maintains the Golden Gate Bridge and provides public transit services between and within Marin, Sonoma, Contra Costa and San Francisco counties. It provides these public services under authority of California State Law. The District was formed under authority of the Golden Gate Bridge and Highway Act of 1923, and incorporated on December 4, 1928, to include within its boundaries the City and County of San Francisco, the counties of Marin, Sonoma, and Del Norte, most of Napa and part of Mendocino counties. The District is governed by a Board of Directors who are appointed by the elected representatives of their constituent counties. There are 19 residing Board members. The District core "products" are the Golden Gate Bridge, Golden Gate Transit (Bus) and Golden Gate Ferry systems. The District is comprised of three operating divisions (Bridge, Bus and Ferry) and one administrative division (District) and currently employs about 800 people. Since its opening in 1937, the Golden Gate Bridge has been recognized as one of the most unique bridges in the world. With its graceful art deco style and inspiring natural setting the Bridge has become an international icon and a destination for a world of visitors. In 1969, the California State Legislature authorized the GGBHTD to use Bridge tolls to develop transit service in the U.S. Highway 101 (U.S. 101) Golden Gate Corridor as a means of managing traffic congestion and avoiding costly highway expansion. The result has been a Bus and Ferry transit system that affords convenience, economy and even luxury not seen anywhere else in the Bay Area. In the summer of 1970, the GGBHTD inaugurated Ferry service between Sausalito and San Francisco. The Ferry Division will be celebrating its 40 th anniversary later this year. The Mission of the Golden Gate Bridge, Highway and Transportation District is to provide safe, efficient and reliable means for the movement of people, goods and services within the Golden Gate Corridor. In carrying out this Mission, the District operates and maintains the Golden Gate Bridge in a structurally sound condition to provide safe and efficient travel for vehicles and other modes of transportation; provides public transit services, such as buses and ferries, which operate in a safe, affordable, timely and efficient manner; and carries out its activities in a cost effective and fiscally responsible manner. The District recognizes its responsibility to work as a partner with federal, state, regional and local governments and agencies to best meet the transportation needs of the people, communities and businesses of San Francisco and the North Bay Area. 12

15 The following are the District's policy goals and objectives regarding its transportation services: To maintain and operate the Golden Gate Bridge; To ensure reasonable mobility across the Bridge by providing for public transit services and encouraging ridesharing insofar as resources permit; and, To contribute to the protection of the environment by working as a partner with other public agencies in providing attractive, efficient regional public transit services as an alternative to the private automobile and by encouraging the use of such services. Golden Gate Transit provides five types of transit service: Basic Bus routes provide daily service every day and evening between San Francisco, Marin, Sonoma and Contra Costa counties. Buses operate at regular intervals of 15 to 90 minutes depending upon the time of day. Ferry runs provide daily service between Sausalito or Larkspur and San Francisco at varying intervals of 20 to 120 minutes with service that is more frequent during weekday commute periods (except holidays). Commute Bus routes provide express commute period service, mornings and evenings, at frequent intervals between Sonoma, Marin and San Francisco counties, Monday through Friday (except holidays). Local Bus routes provide weekday and limited weekend service within Marin County. Buses operate at regular intervals of 30 or 60 minutes depending on the time of day. Supplemental Local Bus routes provide limited service in Marin County, on school days. Buses operate according to the opening and closing times of schools along their route. 13

16 THE BUDGET PLANNING AND DEVELOPMENT PROCESS The District Budget process is designed to identify goals and objectives and to allocate resources accordingly. The basis of budgeting is the same as the basis of accounting. The District s financial statements are prepared on an accrual basis in accordance with generally accepted accounting principles of the Governmental Accounting Standards Board (GASB). The District is structured as a single enterprise fund and is operated similarly to private business enterprises. The District provides transportation services to the public and is financed primarily through Bridge tolls and passenger fares. Budget performance is monitored and controlled throughout the year by the Budget Office and Operating Divisions using exception reporting and variance analysis. The budget for the upcoming fiscal year is approved by the Board of Directors at the end of the budget process in June. When necessary, budget adjustments are recommended and approved by the Board of Directors. The budget process begins in December with a review of District and division level goals and objectives with the Budget staff, General Manager and Auditor-Controller. The Budget and Program Analysis Office and the Capital and Grant Programs Office are responsible for the distribution of budget instructions and materials for the operating and capital budgets, as well as the long-range capital program. These offices work together to coordinate their efforts and facilitate a budget process that is focused on achieving the District s short-term and long-term goals and objectives. The FY 10/11 Adopted Budget identifies the strategic directions and priorities of the Board of Directors and is structured to reflect the goals of the Board s long-term strategic planning process. It incorporates actions taken by the Board resulting from that process, such as the multi-year goal to reduce operating costs and the continuing five-year transit fare plan. In addition, the FY 10/11 Adopted Budget includes full funding of expense for accrual of retiree health benefits (Other Postemployment Benefits, or OPEB). The operating budget is prepared initially at the department level, then the division level and finally at the total agency level. The Budget Office prepares and distributes historical and year-to-date actuals and projections in the form of budget worksheets. Department and organization budgets are then prepared, reviewed by division management and then submitted to the Budget Office for analysis. The Budget Office and Auditor-Controller conduct an extensive review of the requested budgets, validate current and projected expenditures and identify outstanding issues for consideration during reviews with the General Manager. Budget requests must include justifications in order to remain or be added to the budget. Working closely with the Budget Office, the Capital and Grant Programs Office is responsible for preparing the Capital Budget. At the start of the budget process, each Division is asked to update their current capital project lists and nominate potential 14

17 projects for inclusion in next year s budget. The capital projects undergo several levels of careful evaluation and discussion with the Auditor-Controller, Deputy General Managers, District Engineer and the General Manager. Due to limitations in both funding and staff resources, each project is vetted and prioritized based on several criteria, including but not limited to each Division s workplan and need, funding deadlines, safety and ADA compliance. The results of these discussions ultimately determine which projects will be included in next year s budget and their proposed budget amounts. The completed division budgets are then reviewed at the policy level by the Executive Team consisting of the General Manager, District Officers and the Deputy General Managers. The Executive Team reviews and analyzes operating and capital budgets to assure that they meet the goals and objectives for the upcoming budget year. This review of budget requests may result in adjustments in order to maximize District resources. In general, it is the District s policy to secure the maximum amount of external funds possible and to spend these funds prior to relying on internal funds for capital projects. The Adopted FY 10/11 District Capital Budget includes $56.1 million in Federal and State funding and $10 million in District funding. This represents a Federal/State funding percentage of 85% and a District funding percentage of 15%. Once the operating and capital budgets have been thoroughly reviewed and approved by the General Manager and the Auditor-Controller, they are formally presented to the Finance-Auditing Committee. This Finance-Auditing Committee meeting marks the initial discussions which culminate with the final adoption by the Board of Directors. The budget is scheduled for Board consideration before the end of the fiscal year preceding the new budget year. The Adopted FY 10/11 Operating and Capital Budgets were presented to the Finance-Auditing Committee on May 28, 2010, and approved by the Board of Directors on June 25,

18 Jan 4, 2010 Dates Jan 4 Jan 22, 2010 Jan 11 Feb 5, 2010 Feb 12, 2010 BUDGET PREPARATION CALENDAR FOR FY 10/11 Activity Targets and Timeline setting with General Manager, Auditor- Controller and Budget Office Budget Kickoff Meetings with Departments Departments work on Goals, Estimated Accomplishments, Review of Division Profile and Performance Standards Department Budget Presentations and Budget Numbers Due to Budget Office Capital Budgets Due to Capital and Grant Programs Office Feb 22 Mar 5, 2010 Deputy General Managers and Officers/CFO Meetings Mar 29 Apr 5, 2010 General Manager Budget Meetings and Decisions Apr 6 May 20, 2010 Budget Office prepares the Proposed Budget document May 28, 2010 Budget presented to Finance-Auditing Committee May 28 June 25, 2010 Budget Discussion and Board Approval BUDGET PROCESS 1. General Manager and Auditor-Controller (CFO) review District s goals and objectives. 2. General Manager and CFO establish budget expense targets and timelines. 3. Budget Office submits budget calendar to Executive Team. 4. Budget packets are distributed to the Deputy General Managers (DGMs) and Executive Team. 5. Budget Office and Capital and Grant Programs Office conduct Kick-Off Meetings with DGMs and staff to establish budget targets and goals. 6. Budget Office, Capital and Grant Programs Office, and DGMs work together to develop operating and capital budgets. 7. Operating and capital budgets are submitted to the Budget Office and Capital and Grant Programs Office for review and consolidation. 8. CFO meets with DGMs to review proposed budgets. 9. DGMs, CFO, Director of Budgets and Director of Capital and Grant Programs Office meet with General Manager to discuss Division budgets and Division goals. 10. Proposed Budget Book is created. 11. Proposed Budget is reviewed by the Finance-Auditing Committee. 12. Proposed Budget is reviewed by the Board of Directors. 13. Budget is approved by the Board of Directors. 14. Final Adopted Budget Book is published. 16

19 FY 10/11 ADOPTED BUDGET POLICIES Balanced Budget: The District is committed to a long-term balanced budget defined as all current operating and capital expenditures to be funded by current revenue and Federal, State and Local grants. When necessary, additional funding is drawn from District reserves. Long-Range Financial Planning: The District has a long-range plan that is updated on an annual basis. The current financial planning process begins with an updated District projection followed by an annual review process. This process includes developing solutions to eliminate the financial deficit if applicable. Typically on an annual basis, the Board of Directors attend a Strategic Plan Workshop in which staff presents the current long-term plan and develops strategies for implementing deficit reduction plans and projects. Every year, immediately following adoption of the current budget, finance staff develop a long range 5- and 10-year projection, which is used in the Board Workshop review and discussion. Please refer to Appendix G of the budget document for the latest 10-year projection. Also, please refer to District Financial Situation on page 22 of the budget document for more in-depth discussion of the District s financial situation. Sources of Revenue: Sources of revenues for the District are bridge tolls, fares from bus and ferry patrons, grants from Federal, State, and local agencies, contract services, concessions, and investment income. Tolls fund not only the majority of the Bridge operations, but they also subsidize the District s transportation operations in the Bus and Ferry Divisions. The District is unique among transit operations as it provides Bus and Ferry transit services without support of direct property tax, sales tax measures, or dedicated general funds. As a result, the District uses the surplus toll revenue to subsidize the District s regional and transbay transit services in conjunction with State and local funds received from Marin and Sonoma counties. The District closely monitors toll, transit fare, and State and local funding revenues to guard against revenue shortfalls which could result in disruptions in service. Capital Improvement Plan: Each year the District develops an annual and multi-year capital improvement plan. This capital improvement plan is part of the budget development process. Multi-year capital plans are included in Appendix E of the budget document. At least 85% of the District s Adopted FY 10/11 capital projects are funded by capital grants; the remaining 15% of projects are funded through District capital reserves. Appendix D of the budget document provides a listing of Major Sources of Grant Funds. Budgetary Expenditure Control: The District closely monitors expenses to ensure fiscal stability and accountability. Each Division must operate within each budgeted line item. If a Division is over its budget in an expense, budget transfers are required to 17

20 ensure funding is available for the overage. These are handled through an approval from the General Manager for transfers less than $50,000 and Board approval for transfers more than $50,000. Special Reserve Accounts: Operating Reserve Board policy funds the operating reserve at 7.5% of the operating budget or to cover the expected operating deficit, whichever is larger. Emergency Reserve Board policy funds the emergency reserve at 3.5% of the operating budget to enable the amount kept in reserve for emergencies to remain relative to the size of the District s operations. Debt Issuance and Management See Commercial Paper Notes Program under the District Financial Situation for definition and discussion of the District s Commercial Paper Program. Board Designated Reserves Board policy funds the Bridge Self-Insurance Loss Reserve and the Capital Plan Reserve. See Board Restricted Reserves under District Financial Situation for definition and discussion of these specific Board Designated Funds. 18

21 FY 10/11 ADOPTE ED BUDGET OVERVIEW The FY 10/11 Adopted Budget contains $236.7 million in spending proposals including: $170.6 million in operating expenses (including contributions to reserves) and $66..1 million in capital project expenses. The spending is projected to be funded by $ million of new revenue. The components are made up of $149.4 million in revenues from operations, $14.2 million in operating grants and $56.1 million in capital grant revenues from Federal, State and Local sources. The District will use $17 million from reserves that were set-aside for operating shortfalls and future capital projects to fund the remainder of the budget. R FY 10/11 ADO REVENUE SOURCES AND EXPENSE ALLOCATION OPTED OPERATING AND CAPITAL BUDGET (IN MILLIONS ) Source of Revenues Tolls Fares Other Revenu ue Government Grants Marin Bus Service Contract Reserve Funds $ Type of Expens e Trans sit Operating Trans sit Capital* Bridg ge Operating g** Bridg ge Capital* $ Total $ Total $236.7 Marin Bus Service Contract 6% Reserve Funds 7% Tolls 43% Bridge Operating 27% Bridge Capital 15% Government Grants 30% Other Revenue 5% Fares 9% Transit Capital 12% Transit Operating 46% * District Division capital projects are apportioned to Transit and Bridge in the same manner as District expenses allocation. ** Bridge Operating Expense includes Visitor Center and Concessions expenses. 19

22 FY 10/11 ADOPTED OPERATING AND CAPITAL BUDGET THREE-YEAR COMPARISON (IN MILLIONS) Revenue Actual FY Actual FY Adopted FY 08/09 09/10 10/11 Bridge Tolls $97.1 $100.6 $101.9 Transit Fares Other* Operating Assistance Operating Revenue Sub-total $165.4 $162.1 $163.6 Capital Grants Total Revenue $198.7 $212.8 $219.7 Expenses Labor and Fringes $104.2 $106.8 $109.7 Services/Supplies/Other Contribution to Capital & Other Reserves Operating Expenses Sub-total $160.7 $163.7 $170.6 Capital Project Expense Total Expenses $204.9 $222.4 $236.7 Total Revenue Over/(Under) Total Expense ($6.2) ($9.6) ($17.0) NET IMPACT ON DISTRICT RESERVES THREE-YEAR COMPARISON (IN MILLIONS) Actual FY 08/09 Actual FY 09/10 Adopted FY 10/11 Total Revenue Over/(Under) Total Expense ($6.2) ($9.6) ($17.0) Transfers to District Reserves District Capital Contribution** $9.0 $12.0 $13.0 Bridge Self-Insurance Against Losses Depreciation Sub-Total Transfers to Reserves $17.9 $20.8 $21.4 Impact on Reserves $11.7 $11.2 $4.4 Transfers to OPEB (Other Postemployment Benefits) Trust $5.1 $4.8 $4.4 * Other revenue consists of Concession Sales, Investment Income, Advertising, Contract Revenue and Regional Measure 2 (RM2) funding. ** See Capital Contribution section for more detail. 20

23 TRANSIT SYSTEM FUNDING The total subsidy (including the amount from reserves) required to fund the transit system is projected to increase from $48.8 million in FY 09/10 to $53.7 million in FY 10/11. The $53.7 million total subsidy consists of $46.7 million from the current District operating income and $7 million from reserves as compared to $47.2 million from operating income and $1.6 million from reserves in FY 09/10. The following table displays how the tolll subsidy and other revenues are allocated for the FY 09/10 Actual expenses and Adopted FY 10/11 Budget. How Golden Gate Transit Was How Golden Gate Transit is Funded in FY 09/10 Estimate ed to be Funded in FY 10/11 (In Millions) (In Millions) Bus Ferry Total % of Bus Ferry Total % of Division Division Transit Cost Division Division Transit Cost GGB Toll Subsidy Patron Contribution Other Revenue Government Grants Fundin ng from Reserve es $ $ $ % 23% 20% 9% 1% $ $ $ % 20% 17% 13% 6% Total $76.2 $24.4 $ % $80.4 $26.4 $ % 100% 80% 60% 1% 9% 20% 23% 6% 13% 17% 20% 40% 20% 47% 44% 0% FY 09/10 GGB Toll Subsidy Other Revenue Funding from Reserves FY 10/11 Patron Contribution Government Grants 21

24 DISTRICT FINANCIAL SITUATION Financial Reserves: Impact of Fiscal Year 09/10 (Unaudited) It is projected that the District will finish the FY 09/10 operating budget year (which includes a $12 million transfer to the capital reserves) with estimated revenues approximately $1.6 million under estimated expenses. The District s short-term and long-term financial situations would be significantly worse if the Board had not taken the steps over the previous years to increase revenues and decrease expenses. To increase revenues the Board implemented a toll increase in 2008, instituted more than 10 years of successive transit fare increases, and conducted discussions with local and regional partners that produced millions more in contract and grant revenue. To decrease expenses, in the recent past the Board instituted administrative and program staff reductions, salary freezes, medical plan reforms, bus transit service reductions and ferry service restructuring. The Board has also established the Financial Planning Advisory Committee and passed a long-term Strategic Financial Plan on October 30, 2009, both of which are discussed in greater detail at the end of this section. The Financial Plan contains initiatives to balance revenues and expenses over the long term. RESERVE FUNDS AVAILABLE FOR CAPITAL PROJECTS FISCAL YEARS BEGIN JULY 1 ST (EXCLUDES LIABILITY RESERVES) $120 $100 $99 $97 * $113 $85 $80 $70 $69 $72 $78 $61 $64 $60 $51 $54 $52 $40 $22 $35 $40 $34 $34 $39 September 2, 2008 Toll Increase to $6.00 $20 $5 $7 $6 July 1, 1991 Toll Increase to $3.00 $61 Million Commercial Paper Program September 1, 2002 Toll Increase to $5.00 $0 FY 88/89 FY 89/90 FY 90/91 FY 91/92 FY 92/93 FY 93/94 FY 94/95 FY 95/96 FY 96/97 FY 97/98 FY 98/99 FY 99/00 FY 00/01 FY 01/02 FY 02/03 FY 03/04 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 * Estimated 22

25 Impact of FY 10/11 Adopted Budget The FY 10/11 Adopted Budget continues the Board s efforts toward achieving long-term financial sustainability. It builds on the actions taken in previous years to increase revenues and reduce operating costs. Although management and the Board continue to work to reduce projected expenses, the operating revenue shortfall in FY 10/11 is projected to require spending from reserves. Due to provisions that add to capital reserves, the reserves available for capital and operating are projected to increase slightly in FY 10/11 (See Appendix A). The FY 10/11 Adopted Budget projects that the total spending from reserves will be $17 million. This is made up of two pieces: The operating expenses are projected to be $7 million greater than projected operating revenue; and, The capital budget projects that $10 million in capital reserves will be necessary to fund the District s share of the capital projects scheduled for FY 10/11. As an offset to the Operating and Capital reserve spending of $17 million, the FY 10/11 Adopted Budget also includes $21.4 million in transfers to reserves resulting in a net reserve increase of $4.4 million. As discussed, it has always been planned that the District s share of the capital budget would be funded from reserves. Capital budgets are designed to be balanced over the long-term, which is the objective of the long-term financial plan. The $13 million Capital Contribution included in the expense budget is designed to cover these costs. However, since the operating budget is in deficit, it is expected that the entire $13 million amount will not be available to transfer to capital, thus the reserves take a double hit (i.e., they are reduced by both operating and capital costs). Funding the operating shortfall out of the reserves is not a long-term possibility. As in years past, the District will work to reduce the operating budget deficit during FY 10/11. The District accumulates reserves through its operating budget. Those reserves are set aside until the Board allocates them to fund the District share of the cost of capital projects or to cover temporary operating budget deficits. After funds are allocated by the Board, they are spent out over one to several years depending on the particular capital project. The following graph represents a projection of how the current total of capital reserves (see graph on the previous page) would be allocated (Projected Unallocated Reserve line) and spend out (Projected Reserve Balance line) if capital projects are undertaken as laid out in the 10-Year Capital Plan (See Appendix E). Board action to eliminate current and future operating budget deficits, to acquire additional operating or capital grant funds and/or to delay or eliminate projects from the 10-Year Capital Plan would have a significant impact on the rate reserves are allocated and thus in the amount of reserves available. 23

26 $150 $100 $50 $113 Projected Reserves for Capital Projects (All Numbers in Millions) $117 $80 $97 $81 $0 (-$50) $1 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 (-$17) (-$23) (-$100) (-$129) (-$150) Projected Reserve Balance Projected Unallocated Reserve Board Restricted Reserves The Board has created four designated reserves, Bridge Self-Insurance Reserve (BSIR), Capital Plan Reserve, the Operating Revenue and the Emergency Reserves. The latter three are discussed in footnotes in Appendix A. The BSIR was created by the Board in FY 05/06. It was intended to fund up to $25 million, at $1.3 million a year, to offset the need to insure the loss of toll revenue in the event of an emergency. This budget includes the $1.3 million contribution based on the Board s decision in March 2010, to continue to fund the reserve in place of purchasing insurance. Commercial Paper Notes Program On July 12, 2000, the District issued commercial paper notes in Series A and Series B in an amount of $30.5 million for each series, for a total of $61 million, to provide funds for the Golden Gate Bridge (Bridge) Seismic Retrofit Project and the renovation of the main cables of the Bridge. Under this program, the District is able to issue commercial paper notes at prevailing interest rates for a period of maturity not to exceed 270 days. The commercial paper notes are secured by a pledge of the District s revenues and two dedicated reserves, and additionally secured by a line of credit. The authorization to issue commercial paper is by the District Board either by resolution or by an indenture and/or an issuing and paying agreement entered into by the District. There is no legal debt limit except the pledge of revenues pursuant to and in a manner consistent with Subsection of the Bridge and Highway District Act, being Part 3 of Division 16 of the Streets and Highways Code of the State of California. Standard & Poor s and Fitch began rating the District in 2000 when the District issued commercial paper for the first time. The District has the highest credit rating (AA- and 24

27 A+) in the nation for a single toll facility. These are implied credit ratings as the District has no outstanding long-term debt. The District has no plans at this time to increase the current $61 million in commercial paper notes. In connection with the sale of the commercial paper, the District has secured a Line of Credit with JP Morgan to guarantee the payment of interest when due. As additional security, the District established both an Operating Reserve Fund and a Debt Service Reserve Fund, both of which have been and will remain fully funded throughout the Commercial Paper Program (CP Program). (See Appendix B for details on the budget covenant.) The FY 10/11 Adopted Budget provides that the $61 million remains outstanding throughout FY 10/11 and does not provide for further borrowing. In addition, the FY 10/11 Adopted Budget fully funds the maintenance of the commercial paper program, including long-term arrangements with Goldman Sachs and Morgan Stanley, to market the commercial paper and JP Morgan to provide a line of credit. Total commercial paper program costs as a percentage of the total commercial paper notes outstanding are summarized in the table below. COMMERCIAL PAPER PROGRAM COSTS AS A PERCENTAGE OF NOTES OUTSTANDING FY 06/07 Actual FY 07/08 Actual FY 08/09 Actual FY 09/10 Actual FY 10/11 Adopted Average Annual Interest Rate 3.54% 2.83% 1.23% 0.29% 2.41% CP Program Related Costs 0.35% 0.36% 0.49% 1.82% 0.79% Total CP Program Costs as a % of Total CP Notes Outstanding 3.89% 3.19% 1.72% 2.11% 3.20% CP Program Related Costs include line of credit fees, rating agency fees, dealer costs, and various bank fees. As required by the indenture, FY 10/11 Adopted Budget reflects the average interest rate for the preceding 12 months. Long-Term Strategic Financial Planning Financial Planning in FY 09/10 In response to recent financial projections, District staff developed a series of proposed initiatives to address the District s projected financial deficit. In May 2009, the Board established the Financial Planning Advisory Committee, tasked with creating a plan to address the projected financial deficit. The FY 09/10 Financial Plan for Achieving Long- Term Financial Stability (Plan) drafted by the Advisory Committee was approved by the Board on October 30,

28 The guiding principles of the Plan are to: Uphold the Mission Statement of the District to provide reliable transportation services and operations for customers within the U.S. Highway 101 Golden Gate Corridor. Include both revenue enhancements and expense reductions. Expense reductions will emphasize efficiencies in services over the elimination of services. Prioritize deficit reduction initiatives which are nearing completion or which can be completed in less than two years. The five-year projected deficit is estimated to be $132 million as a result of several recent developments including the current recession, which has resulted in reduced revenues, a reduction in State transit funding in FY 09/10 and the commitment of $75 million toward the Doyle Drive reconstruction project. The Plan laid out 33 specific initiatives that, if implemented, will help restore the District s financial stability. The Plan will become part of the Board s regular financial planning cycle and will be monitored, reviewed and updated annually with completed, dropped or added initiatives. The Plan, when compared to each updated projection, will be an essential means to monitor the progress of reducing the deficit. The Plan utilizes the current five and ten year period projections submitted regularly to the Board. The use of these financial projections enables the Plan to provide estimates of each initiative s impact on the projected deficit. Board approval of any single Plan initiative will be enacted on an individual basis. The Adopted FY 10/11 Budget will implement five Plan initiatives and carry out work on others already approved by the Board. These initiatives are as follows: Financial Plan Initiative #1: New Banking Collections. The budget includes the elimination of one vacant Assistant Vault Supervisor position and one vacant Vault Officer position. The District is estimated to save $200,000 on an annual basis, with a projected savings of $2.1 million over a 10-year period. Financial Plan Initiative #3: Continue Reducing Manual Collection of Tolls. This initiative includes reducing the number of staffed lanes on the Bridge based on current traffic patterns. The budget includes the elimination of two vacant Bridge Officer positions for an annual savings of $170,000, with a projected savings of almost $2 million over 10 years. Financial Plan Initiative #16: Adjust 10-Year Capital Plan. This initiative sets a longer timeframe for the current projects and looks to increase grant commitments to reduce the yearly Capital contribution amount from $19 million to $13 million, or $60 million over 10 years. Financial Plan Initiative #17: Reduce Administrative Expense (Overhead). The goal of this initiative is to improve the efficiency in administrative process annually by reducing overhead costs by a target of $600,000 throughout the District. In response to the initiative, the Bridge Division deletes two Bridge Officer positions through attrition 26

29 for an annual savings of $170,000. The Engineering Department eliminates one vacant Engineering Design Technician position for an annual savings of $108,000. The Administration and Development Division eliminates one Unix Systems Administrator for an annual salary savings of $137,000. In addition, the Administration and Development Division is completing a benefits audit which is estimated to yield $200,000 annually in savings. The Bus Division deletes one full-time dispatcher position and adds one part time dispatcher for a net annual savings of $50,000. The Ferry Division has revised operating procedures which will realize a reduction in fuel consumption of 40,000 gallons for an annual savings of $80,000. The grand total annual financial impact of this initiative is $745,000 in savings. Financial Plan Initiative #23: Implement a Car Pool Toll. This initiative, approved by the Board on May 28, 2010, establishes a car pool toll rate at 50% of the cash toll for 2 axle vehicles, effective July 1, This increased toll is projected to generate $1.2 million in annual Bridge toll revenue. This additional revenue is included in the Adopted Operating Budget thus reducing the operating deficit by $1.2 million. In summary, the proposed Plan initiatives will result in the elimination of eight (8) operations and administrative positions, of which seven (7) are vacant, resulting in one (1) layoff. The full Board Agenda Item presenting and including the Plan document can be found in Appendix F. 27

30 FY 10/11 Projection vs. FY 10/11 Adopted Budget - Revenue The following exhibit compares the latest projected revenues for FY 10/11 contained in the Long-Term Projections (See Appendix G for detail) with the FY 10/11 Adopted Budget revenues. The FY 10/11 Adopted Budget is approximately $200,000 less than projected. FY 10 FY 10/ 0/11 PROJECTION COMPARED TO /11 ADOPTED BUDGET REVENUES 10-YEAR PROJECTION (IN MILLIONS Adopte ed Projecte ed Budget Revenue Revenue Variance Bridge Division Bus Division Ferry Division Visitor Services & Concessions s $ $ $0.4 (1.2) 0.9 (0.3) ) Total $163.8 $163.6 ($0.2) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2% 8% 25% 65% Projected Revenue 1% 9% 24% 66% Adopted Budget Revenue Bridge Division Bus Division Ferry Division Visitor Services & Concessions 28

31 FY 10/11 Projection vs. FY 10/11 Adopted Budget - Expense The following exhibit compares the latest projected expenses for FY 10/11 contained in the Long-Term Projections (See Appendix G for detail) with the FY 10/11 Adopted Budget expenses. The FY 10/11 Adopted Budget is approximately $5.9 million less than projected. FY 10 FY 10 0/11 PROJECTION COMPARED TO 0/11 ADOPTED BUDGET EXPENSES 10-YEAR PROJECTION (IN MILLIONS Adopte ed Projecte ed Budget Expens e Expense Variance Bridge Division Bus Division Ferry Division Visitor Services & Concessions s $ $ ($6.4) 1.2 (1.0) 0.3 ) Total $176.5 $170.6 ($5.9) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1% 16% 45% 38% Projected Expense 1% 16% 47% 36% Adopted Budget Expense Bridge Division Bus Division Ferry Division Visitor Services & Concessions 29

32 30

33 OPERATING & CAPITAL BUDGET SUMMARY TABLE OF CONTENTS Operating Budget Summary Operating Revenues Operating Expenses Capital Program Summary

34 32

35 OPERATING BUDGET SUMMARY The FY 10/11 Adopted Operating Budget of $170.6 million has a deficit of approximately $7 million. The following tables and graphs provide information on the sources of funding and areas of expenditures in the FY 10/11 Adopted Operating Budget. WHERE WILL THE MONEY COME FROM TO OPERATE GGBHTD IN FY 10/11? FY 10/11 % of Total Tolls $ % Fares % Other Revenue % Contract Revenue (MCTD) % Government Grants % Reserve Funds 7.0 3% Government Grants 9% Contract Revenue (MCTD) 8% Other Revenue 7% Fares 13% Reserve Funds 3% Tolls 60% Total $ % WHERE WILL THE MONEY GO TO OPERATE GGBHTD IN FY 10/11? FY 10/11 % of Total Bridge Division $ % Bus Division % Ferry Division % Visitor Services & Concessions 3.0 1% Total $ % Bus Division 47% Ferry Division 16% Visitor Services & Concessions 1% Bridge Division 36% 33

36 OPERATING REVENUES Operating revenues are expected to increase approximately $1.4 million, or (0.9%), to $163.5 million from FY 09/10 Actual. This increase is the result of increases in toll revenue, Federal operating income and additional funds from the State Assistance Program (STA) program offset by decreases in revenue to the Marin County Transit District (MCTD) contract, Transit Fares, Other Operating Income and Investment Income for FY 10/11. Bridge Tolls: Bridge toll revenues are projected to be $101.9 million, which is $1.3 million higher than FY 09/10 Actual. This increase is primarily due to the implementation of a car pool toll, effective July 1, Transit Fares: FY 10/11 will be the fifth year of the 2005 Board approved five-year transit fare plan which included a 5% annual increase in transit fares for each year from FY 06/07 through FY 10/11. For FY 10/11 transit fare revenue is projected to decrease slightly. This projected net decrease of $500,000 is the result of two things: First, the 5% fare increase is expected to result in approximately $1 million in increased fare revenue and, second, decreases are projected in Bus and Ferry passengers resulting in a decrease of $1.5 million in revenue. Due to the economic downturn, the Bus Division experienced a significant decrease in passengers which is projected to continue through FY 10/11. Other Operating Income: Other Operating Income includes the continuation of approximately $2.5 million in Regional Measure 2 (RM2) funds from the Metropolitan Transportation Commission (MTC) to assist in subsidizing Bus Routes 40/42, 72X and 101 as well as advertising revenue and property rentals. State Operating Assistance: Operating Assistance is composed of three funding sources: 1.) State Transit Assistance (STA) program received minimal funding in FY 09/10. However, STA funding is projected to be $4.4 million in FY 10/11; 2.) Transportation Development Act (TDA) funds are of $8.7 million are slightly lower than FY 09/10; 3.) Caltrans funding of $720,000 to cover liability insurance, labor and materials associated with the design of lane configuration during construction of Doyle Drive (Please refer to State Operating Income chart on page 36 for more detail). Contract Revenue (MCTD): Marin Local Service Contract includes a 5% increase; however, this is offset by a decrease of $1.3 million due to Bus service reductions. Investment Income: Actual Investment Income consists of both interest income and market valuation gains and losses relating to the District s overall investment portfolio. The total investment return on the investment portfolio was 5.3% in FY 08/09 and 3.2% for FY 09/10. The FY 10/11 Adopted Budget reflects a lower interest rate income of 2.7% and does not assume market fluctuations, thereby resulting in a $1.2 million decrease in Investment Income from FY 09/10 Actual. 34

37 OPERATING REVENUES Revenues FY 08/09 Actual FY 09/10 Budget FY 09/10 Actual FY 10/11 Adopted Budget Toll Revenues $97,120,840 $99,830,000 $100,568,913 $101,900,000 Transit Fares 21,871,104 22,888,700 22,236,916 21,700,000 Concessions 3,169,606 3,200,000 3,104,953 3,000,000 Other Operating Income 5,718,742 4,715,500 5,259,309 4,366,000 State Operating Assistance 13,587,292 10,679,000 9,941,381 13,890,500 Federal Operating Income 402, ,000 50, ,000 Contract Revenue (MCTD) 14,790,188 14,500,000 15,342,979 13,970,000 Investment Income 8,773,610 5,200,000 5,634,097 4,400,000 Total Revenues $165,433,801 $161,313,200 $162,138,548 $163,528,500 Percent Change -2.5% 0.5% 0.9% Revenue Budget Assumptions: Slight increase in Bridge traffic, implementation of a car pool toll and slight decreases in Bus and Ferry ridership. Transit fares increased 5% on July 1, The total Marin County Local Service (MCTD) payment is estimated to be $14 million for FY 10/11, a 8% decrease from the previous year. Other Operating Income includes revenues for the seasonal Muir Woods Shuttle, RM2 funding for Route 40/42, 70X and 101, advertising and rental revenue. The increase in State Operating Assistance is due to a $4 million increase to State Transit Assistance (STA) funding and increases to State funding for lane configuration design and traffic control during construction of Doyle Drive. Projected interest rate of 2.7% in investment income. 35

38 CHART OF OPERATING REVENUES 100% 90% 80% 6% 5% 4% 3% 6% 9% 10% 9% 14% 13% 14% 15% 70% 60% 14% 13% 14% 13% 50% 40% 30% 55% 59% 62% 62% 20% 10% 0% FY 07/08 Actual FY 08/09 Actual FY 09/10 Actual FY 10/11 Adopted Bridge Tolls Transit Fares Other Operating State & Federal Funds Investment Income State Operating Income Funding Source Transit Development Act STATE OPERATING INCOME FY 08/09 Actual 36 FY 09/10 Budget FY 09/10 Actual FY 10/11 Adopted Marin County s Apportionment 6,060,100 6,148,000 5,564,500 4,969,200 Sonoma County s Apportionment 4,186,200 4,351,000 3,673,900 3,754,700 State Transit Assistance (STA) MTC for Administering TransLink Grant 10, ,000 10,000 MTC for TransLink Training Revenue-Based Funds Current Revenue Allocation 1,421, ,585,300 FY 07/08 Spillover Adjustment 1,004, Population-Based Funds North Cities Current Revenue Allocation 342, , ,600 FY 07/08 Spillover Adjustment 336, Regional Paratransit Marin County 34, ,900 80,400 Sonoma County 14, ,300 S/T State Assistance Transit Operations 13,407,300 10,499,000 9,504,500 13,170,500 State Assistance Doyle Drive (Bridge Ops) 180, , , ,000 Total State Operating Revenue 13,587,300 10,679,000 9,941,400 13,890,500 Percent Change -21% -11% 46%

39 OPERATING EXPENSES The FY 10/11 Adopted Operating Expense Budget is $170.6 million (including a $13 million contribution to reserves for future capital projects). This is an increase of 4.2% over FY 09/10 Actual and 0.2% over the FY 09/10 Budget. OPERATING EXPENSES Expenses FY 08/09 Actual FY 09/10 Budget FY 09/10 Actual FY 10/11 Adopted Budget Salaries $62,153,870 $62,934,900 $60,904,341 $62,381,700 Fringe Benefits 42,014,035 $46,971,500 45,904,824 47,312,100 Professional Services 12,015,096 14,112,800 13,669,023 13,503,400 Fuel & Related Taxes 8,450,620 8,446,100 7,741,418 8,826,900 Repair & Operating Supplies 8,254,903 8,128,000 7,908,444 8,065,800 Insurance, Taxes & Permits 6,618,279 4,572,100 4,496,606 4,662,200 Purchased Transportation 1,757,649 1,923,400 1,439,347 1,819,700 Staff Development/Other 780, , , ,400 Leases & Rental 1,295,336 1,407,800 1,398,600 1,484,400 Debt Service - Interest Expense 751,000 1,015, ,000 1,470,000 Subtotal Expenses $144,091,570 $150,485,800 $144,241,343 $150,466,600 Percent Change 4.4% -4.1% 4.3% Capital Contribution 9,000,000 12,000,000 12,000,000 13,000,000 Depreciation 7,632,182 7,655,600 7,467,946 7,087,400 Total Expenses $160,723,752 $170,141,400 $163,709,289 $170,554,000 Percent Change 5.9% -3.8% 4.2% 37

40 Expense Budget Assumptions: A 1.75% salary increase for Coalition-represented and non-represented employees effective January 1, 2011, and assumes no salary increase effective March 1, 2011, for ATU represented employees pending future contract negotiations. Includes ATU Pension contribution (17.165%) and Employer PERS contribution (16.372%). Medical and prescription drug costs increase approximately 8% over FY 09/10 Actual expenses. Workers Compensation expense is budgeted based upon historical experience and projected to be slightly lower than FY 09/10 Actual. Capital Labor expenses are directly charged to the capital projects reducing the operating budget. $2.35/gallon for fuel costs has been projected for all Divisions. All fiscal years show the transfer of District Division expense by its respective line item. As required by the commercial paper indenture, FY 10/11 Adopted Budget interest expense reflects the average interest rate for the preceding 12 months ending March 30th plus 2%. Capital Contribution of $13 million is included in the FY 10/11 Adopted Budget. Summary of Changes to Expenses The following is a summary of changes to the FY 10/11 Adopted Budget from FY 09/10 Actual Expenses. Expense (in millions) SUMMARY OF CHANGES TO EXPENSES % Change (from Actuals) $163.7 FY 09/10 Actual Expenses Description $ % Salaries $ % Fringe Benefits ($0.2) (-0.1%) Professional, Maintenance & Security Services $ % Fuel & Related Taxes $ % Repair & Operating Supplies $ % Insurance, Taxes & Permits $ % Purchased Transportation $ % Staff Development $ % Leases & Rental $ % Debt Service - Interest Expense $ % Capital Contributions/Depreciation $ % Total FY 10/11 Adopted Operating Budget 38

41 A detailed discussion by Division of expense changes can be found under each Division s summary pages. Summary of Changes in Expense Categories Despite the continuous efforts to reduce the District s overall cost of services, nondiscretionary costs continue to rise. On a net basis, the FY 10/11 Adopted Operating Budget shows an increase of 4.2% over FY 09/10 Actual. Of the 4.2%, 1.2% is due to increases in capital contribution and debt service and 0.6% is due to higher fuel costs. The remaining 2.4% includes rising health care costs, fully re-funding vacant positions from the prior year and re-funding operating supplies. Although medical and prescription drug costs are projected to increase 8% from last year, total Fringe Benefits only increase 3% from FY 09/10 Actual to FY 10/11 Adopted Budget. This is the result of more indirect costs being allocated to capital project expenses. Significant Categories of Expense The following is a more detailed discussion of how the following key categories of expenses are presented in the Adopted FY 10/11 Budget: 1. Other Postemployment Benefits (OPEB) 2. Workers Compensation 3. Indirect Cost Allocation (ICAP) 4. Capital Contribution 1. Other Postemployment Benefits (OPEB) In July 2004, the Government Accounting Standards Board issued Statement 45 (GASB 45), Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. This statement requires public entities to account for retiree health benefits on an actuarial accrual basis during an employee s career instead of using the past practice of pay-as-you-go during retirement. The District must calculate and accrue a cost based on the Annual Required Contribution (ARC) for OPEB. The ARC consists of two parts: (1) an amount that covers the current normal cost of benefits as they are earned during active employment; and, (2) an amount that amortizes the unfunded OPEB liability for prior service. The FY 10/11 Adopted Budget OPEB expense is based on the most recent actuarial valuation as of July 1, Based on the Actuarial Valuation, the ARC for FY 10/11 was estimated at $14.9 million. The Adopted FY 10/11 Budget fully funds the ARC payment. 39

42 The District s OPEB Expense by Operating Division is as follows: Division FY 08/09 Actual FY 09/10 Budget FY 09/10 Actual FY 10/11 Adopted Bridge $3,702,500 $3,880,700 $3,749,300 $3,911,400 Bus 8,305,800 8,677,700 8,529,000 9,023,500 Ferry 1,564,600 1,658,300 1,590,100 1,718,000 Visitor Services & Concessions 182, , , ,600 Total $13,755,100 $14,409,300 $14,053,100 $14,850,500 OPEB is included in the line item of Fringe Benefits. All years reflect adoption of GASB 45 which accrues for OPEB costs based on the Annual Required Contribution (ARC) for OPEB. 2. Workers Compensation The Workers Compensation estimates are based on historical incident trends and current management practices that have reduced the District s liability. The following table shows the expected claim costs for FY 09/10 and the projected adjustments to past claims. Amounts budgeted for FY 10/11 are built from FY 09/10 costs without adjustments. The net totals are reflected in the FY 09/10 Actual. FY 09/10 Budget (Adjusted) FY 09/10 Estimated Claims Cost FY 09/10 Estimated (Credits)/ Adjustments FY 09/10 Net Total FY 10/11 Adopted Total District* $3,682,500 $1,965,100 $1,492,400 $3,457,500 $2,866,600 * This only includes Claims Costs. Administrative Fees are excluded. 3. Indirect Cost Allocation (ICAP) The indirect cost allocation plan (ICAP) was developed and implemented in FY 07/08 in order to identify and capitalize administrative costs associated with and in support of various capital projects. Capitalization of labor and indirect costs are transferred from operating to capital. As a result, the salary and benefit categories are displayed in each Division as a net expense of capitalization of labor and indirect costs. The following chart outlines District Division s gross salaries and benefits, the capitalized labor and indirect costs, and the resulting net salaries and benefits expense. ICAP rates for FY 09/10 and FY 10/11 were recalculated based upon new data sources resulting in significant adjustments in FY 09/10 and FY 10/11. 40

43 FY 08/09 Actual FY 09/10 Adjusted Budget FY 09/10 Actual FY 10/11 Adopted District Division s Gross Salaries & Benefits $19,460,340 $21,338,800 $18,988,595 $21,306,900 Capitalized Salaries & Benefits (1,772,530) (2,597,200) (1,417,948) (3,065,000) Capitalized Indirect Costs (418,963) (303,500) (2,450,428) (1,811,800) Net Operating Salaries & Benefits $17,268,847 $18,438,100 $15,120,219 $16,430, Capital Contribution The Adopted Budget includes the Capital Contribution which is a transfer of $13 million to future capital reserves. This transfer, instituted by the Board in 2003, provides the local match for future capital projects. The annual contribution is based on the Districtfunded portion of the 10-year Capital Plan requirements as presented in Appendix E. For FY 10/11, the Capital Contribution of $13 million is distributed to each Division according to its percentage share of District-funded capital projects from the 10-Year Capital Plan. The FY 10/11 Capital Contribution increase of $1 million is primarily due to the $75 million funding of the Doyle Drive Reconstruction planned for FY 13/14 offset by a reduction in the number of projects in the plan. The following is a distribution by Operating Division. (The District Division s portion is allocated using the District Allocation percentages.) Division FY 09/10 Budget FY 10/11 Adopted Bridge $10,000,000 84% $9,000,000 70% Bus 1,000,000 8% 2,000,000 15% Ferry 1,000,000 8% 2,000,000 15% Total $12,000, % $13,000, % 41

44 DIVISION SUMMARY OF CHANGES TO THE TABLE OF ORGANIZATION Positions by Division FY 08/09 Year-End FY 09/10 Budget FY 09/10 Year-End FY 10/11 Adopted District Bridge Bus Ferry Visitor Services & Concessions Total The Division-level details of the Table of Organization can be found in each Division s sections. There is a net elimination of eight (8) operation and administrative positions from FY 09/10 year-end to FY 10/11 Adopted Budget. Table of Organization Changes for FY 10/11 are discussed in detail below. FY 10/11 Adopted Budget Position Changes Positions Eliminated: Bridge Officers (4 positions) Eliminate two vacant and two additional positions when vacated by attrition (pending meet and confer discussions). The FY 10/11 cost savings assumes attrition occurs April 1, Assistant Vault Officer (1 position) Eliminate current vacant position. New banking and collections methods have resulted in increased efficiencies of operations. Vault Officer (1 position) Eliminate current vacant position. New banking and collections methods have resulted in the increased efficiencies of operations. Unix Administrator (1 position) Eliminate the UNIX systems Administrator position, substantially used to maintain the soon to be obsolete Spear System, and some back up to IFAS. Engineering Technician (1 position) Eliminate current vacant position. The function of this position is CAD operator support. Dispatcher (1 position) Eliminate one full-time Dispatcher position to realign Dispatcher unit for greater efficiency. Financial Management Analyst (1 position) Eliminate one vacant full-time position in response to the need for a more advanced skill set, effective December 1,

45 New Positions: Dispatcher (Part-time) (1 position) Add one 20-hour per week part-time Dispatcher position to realign Dispatcher unit for greater efficiency. The costs associated with the elimination of the Full time Dispatcher more than offset this new position. Budget & Program Analyst (Part-time) (1 position) Add a Part-time Budget and Program Analyst position to provide skills needed to manage and support new department responsibilities. The costs associated with the elimination of the Financial Management Analyst more than offset this new position. Position Reclassification(s): Operations Superintendent (1 position) Establish an equalization of salary for one Transportation Superintendent position with similar level and scope of responsibilities of other Transportation Superintendent based on current operations. 43

46 CAPITAL PROGRAM SUMMARY The FY 10/11 Capital Program, developed jointly by the General Manager, Auditor- Controller, District Engineer and Operating Divisions, allocates resources to improve infrastructure by acquiring, constructing, purchasing, rehabilitating and replacing facilities and major equipment. Capital improvement projects generally occur in phases over multiple years. The Capital Program focuses on completing continuing projects and advancing new projects required to maintain existing operations and meet the financial constraints of the District. Many of the capital projects planned for this fiscal year will have significant impacts on operations as well as a financial impact on operating revenue and expense. Some of the significant projects impacting operations are detailed below: Purchase of access platforms and equipment to begin restoration work on the Golden Gate Bridge Main Cable. Replacement of the bus wash rack system at the San Rafael Bus Facility. Work includes the installation of a bus wash system, water reclamation system and all other related work items in a newly constructed steel building. Modify the new San Francisco bus storage facility. This project will include construction of surfacing, drainage, lighting, fencing and incidentals at the site. Continue work on the Advanced Communication and Information System project, which will replace the District s radio communications system. The Larkspur Ferry Terminal Berth and Channel Dredging project is scheduled to commence in FY 10/11. The berth and channel area for the Larkspur Ferry Terminal requires dredging approximately every three to four years. Total refurbishment of the M.V. Golden Gate will begin in FY 10/11. Design work will continue on the Gangways and Piers project for the San Francisco, Larkspur and Sausalito Ferry Terminals. The project will replace and rehabilitate the existing hydraulic ramp and gangway systems. Projects are monitored after completion to determine annual cost and/or revenue impacts. In the instances where operations are affected, future operating budgets will contain these cost/revenue impacts. Please refer to each division s project listing and description for additional information on all capital projects. The total Capital Program is $367.4 million, summarized in the table on the following page, reflects single and multi-year projects with planned expenditures in the FY 10/11 Budget in the amount of $66.1 million. This program will implement 10 new projects and 59 continuing projects to maintain existing services and facilities and to further implement high-priority safety and security projects, including modifications to existing facilities to meet current Americans with Disabilities Act (ADA) standards. 44

47 The FY 10/11 Budget is funded with $10.0 million (15%) District funds and $56.1 million (85%) Federal, State and local grant funds. Of the FY 10/11 Budget: 46% of expenditures fund Bridge Seismic Retrofit activities; 10% fund Bridge projects; 17% fund Bus projects; 25% fund Ferry projects; and, 2% fund the District s various other projects. The FY 10/11 Capital Budget estimates project expenditures for FY 10/11 and assumes that several projects will be completed by June 30, The final FY 10/11 Capital Budget includes adjustments to reflect any carryover of unspent project funds and carries over any projects not completed. A discussion of each Division s FY 10/11 Capital Budget is contained in the individual Division chapters of this budget document. A summary of Grant Funding Sources is provided as Appendix D of this document. FY 10/11 CAPITAL EXPENDITURES BY DIVISION Total Project Prior Years FY 10/11 Budget Future Years Bridge - Seismic Retrofit $162,957,100 $39,742,300 $30,300,000 $92,914,800 Bridge Other 47,941,300 5,101,900 6,403,200 36,436,200 Bus 78,206,500 29,076,600 11,092,500 38,037,400 Ferry 68,521,400 19,462,400 16,498,800 32,560,200 District 9,768,500 6,804,500 1,837,300 1,126,700 Total Expenditures $367,394,800 $100,187,700 $66,131,800 $201,075,300 FY 10/11 CAPITAL EXPENDITURES BY FUND SOURCE Total Project Prior Years FY 10/11 Budget Future Years District $54,155,200 $12,420,000 $9,971,000 $31,764,200 Federal 272,576,000 76,562,100 50,727,400 $145,286,500 State 33,688,900 8,323,000 3,248,500 22,117,400 Other Local 6,974,700 2,882,600 2,184,900 1,907,200 Total Expenditures $367,394,800 $100,187,700 $66,131,800 $201,075,300 45

48 FY 10/11 CAPITAL BUDGET BY DIVISION TOTAL FY 10/11 CAPITAL BUDGET = $66 MILLION (IN MILLIONS) Ferry, $16.5, 25% District, $1.8, 2% Bridge - Seismic Retrofit, $30.3, 46% Bus, $11.1, 17% Bridge - Other, $6.4, 10% FY 10/11 CAPITAL BUDGET BY FUND SOURCE TOTAL FY 10/11 CAPITAL BUDGET = $66 MILLION (IN MILLIONS) State/Other, $5.4, 9% District, $10.0, 14% Federal, $50.7, 77% Fiscal Year 11/12 Capital Budget In an effort to reduce the number of projects in the FY 10/11 budget, each division was asked to prioritize their capital projects. The higher priority projects were included in the FY 10/11 budget to allow project managers to continue working and focusing their efforts on those projects. The remaining projects were included in the FY 11/12 budget 46

49 project list, which consists of projects that are poised and ready to be included in the FY 10/11 budget, pending the availability of funding and staff resources to deliver the project. Creating a list of FY 11/12 capital projects minimizes the number of projects in the FY 10/11 budget, which serves to reflect a more reasonable and accurate estimate of FY 10/11 expenditures for the District. The FY 10/11 Capital Projects lists are included in each division section of this Budget. With the approval of the FY 10/11 budget, the Board of Directors granted the General Manager authorization to move projects from the FY 11/12 list to the FY 10/11 budget, pending the availability of funding and staff resources. This allows the General Manager the flexibility to move FY 11/12 projects forward once the FY 10/11 projects are completed. The FY 11/12 Capital Budget project list is provided on the following page of this document. 47

50 FY 11/12 CAPITAL BUDGET PROJECT LIST Project Name Total Project Cost BRIDGE Enlarge Machine Shop Door $50,000 Alexander Ave. Guardrail $410,000 Changeable Signs - Tolls $355,000 Subtotal Bridge $815,000 BUS Concrete Work - Shop $48,000 Drivers' Door Enclosure $50,000 Replace Fire Alarm System $300,000 Replace Heater (Bus Paint Booth) $43,000 D1 Admin Bldg and Bus Main Shop Lighting $75,000 Expand Visitor Parking Lot at San Rafael $83,000 Replace Roof Drain Pipes in Bus Administration Building Ceiling $20,000 Paint All Buildings at D1 Facilities $230,000 D1 Steam Bay Waste Water Recycling System Replacement $220,000 Fairfax Manor Bus Stop Improvements $65,000 Add Mezzanine to the Stockroom over the West Section $115,000 New Warehouse at D1 for Parts and Record Storage $225,000 Highway 101 Bus Stop Improvements $900,000 Subtotal Bus $2,374,000 FERRY San Francisco Ferry Terminal Building Upgrades & Repairs $225,000 M.S. Sonoma Service Life Extension $450,000 Misc. Parking Lot Upgrades at LFT $50,000 Engine Overhaul - M.V. Mendocino $150,000 Subtotal Ferry $875,000 DISTRICT Interactive Voice Recognition System $250,000 Total FY 11/12 Capital Budget $4,314,000 48

51 BRIDGE DIVISION TABLE OF CONTENTS Bridge Division Profile Bridge Division Organizational Chart Bridge Division Status FY 10/11 Bridge Division Goals and Projects Changes From FY 09/10 Actual To FY 10/11 Adopted Budget Bridge Division Operating Budget Bridge Division Performance Statistics Bridge Division Capital Budget Bridge Division Personnel Summary by Department

52 50

53 BRIDGE DIVISION PROFILE The Golden Gate Bridge is an engineering and architectural wonder of the twentieth century and is considered one of the Seven Wonders of the Modern World. It was opened to vehicular and pedestrian traffic in May 1937 and provides a key transportation link between San Francisco and the North Bay. Today the Bridge is an essential thoroughfare for commuters and tourists with almost 39 million vehicles crossing each year. With a main span of 4,200 feet, towers 746 feet tall and an overall length of 1.7 miles including approaches, the Golden Gate Bridge is an internationally recognized icon. Responsibility for the safe and efficient operation and maintenance of the Golden Gate Bridge rests with the Bridge Division. The Bridge Division workforce is comprised of 200 skilled craft, security, service, administrative and management employees. The Deputy General Manager of the Bridge Division is responsible for two major organizational units: Bridge Maintenance and Bridge Operations. Bridge Maintenance is responsible for the preservation, repair and upkeep of the Bridge along with the associated vehicles, shops, office facilities, communications and security equipment. Bridge Maintenance is comprised of four Departments: Electrical, Paint, Ironworkers/Operating Engineers and Facilities and Equipment. Bridge Operations is responsible for public safety, security, toll collection, emergency response and managing the flow of traffic across the Bridge and its approaches. Bridge Operations consist of Toll Collectors, Bridge Patrol Officers, Sergeants and Lieutenants, Laneworkers and Bridge Service Operators, all of whom are managed day-to-day by the Bridge Captain. 51

54 BRIDGE DIVISION ORGANIZATIONAL CHART Deputy General Manager - Bridge Bridge Maintenance Bridge Operations Electrical Paint Ironworkers & Operating Engineers Facility & Equipment Maintenance Toll Collection Bridge Security Bridge Service 52

55 BRIDGE DIVISION STATUS Continual Progress and Maintenance Fiscal Year 09/10 was a banner year for the Bridge Division! Bridge Division Maintenance forces continue to implement our 10-year maintenance plan, making significant progress on a number of critical items identified in the 2001, 2004 and 2007 Bridge inspections. We continue to innovate, using state-of-the-art maintenance practices that have dramatically improved the quality and efficiency of our maintenance program and received considerable acclaim within our industry. FY 09/10 saw the completion of a 2½ year project to re-coat all of the Bridge s 1,032 suspender ropes using the highly innovative Cable Master automated cleaning and coating system developed at the Golden Gate Bridge as well as traditional sky boxes on the longer ropes where spreaders prevent the use of the Cable Master. FY 09/10 also saw major progress on the maintenance program for the North Approach Viaduct. Abrasive blasting, inspection, steel repair and recoating are now occurring in a completely enclosed, environmentally controlled and properly ventilated work area. The result is that structural maintenance and restoration is now proceeding with unprecedented efficiency, in all weather conditions and in full compliance with safety and environmental regulations. Modernization We continue to modernize our shops, equipment, machinery and vehicles to reduce maintenance costs, improve efficiency, ensure environmental and occupational safety compliance and meet the growing demands of our operation. The Bridge Division continues to be involved in research, development and testing of new maintenance practices, equipment and materials. Working with FHWA researchers, coatings manufacturers and industry groups, several new coatings and surface preparation methods are being tested on the Bridge. Our green recycled vegetable oil pilot project continues and now includes our entire fleet of diesel scooters, two diesel air compressors and two over-the-road vehicles. Bridge Operations Over the course of FY 08/09, 38,132,812 vehicles crossed the Golden Gate Bridge. Bridge Toll Collectors processed approximately $97,121,000 in tolls, roughly $37,877,000 of which was manually collected with an accuracy greater than 99.9%. In 2009, Bridge Service crews responded to 11,342 roadway service calls, almost double the number of calls handled 5 years ago. Laneworkers conducted more than 1,200 routine lane diversions, moving more than 1.2 million tubes without serious incident. In 2009, Bridge security forces responded to thousands of calls, approximately 479 of which were significant enough to warrant generation of an incident report. 53

56 The Golden Gate Bridge Security Coalition continues to function smoothly and is widely heralded as an example of inter-agency cooperation. Together with our coalition partners, we have maintained a highly trained, highly motivated and highly visible security presence. By partnering with other coalition agencies, we have enhanced our own effectiveness. Despite the difficult and complex issues surrounding the use of the Bridge sidewalks for expressive activities and special events, the vast majority of these events go smoothly. In 2009, there were 46 permitted events on the Bridge involving over 47,000 participants. This is compared to 2008, in which there were 53 events; 2007, with 43 permitted events; and, 2006, with 35 permitted events. Continued Progress for the Year Ahead FY 10/11 brings another year filled with budget challenges, difficult maintenance projects and continued focus providing safe, efficient and reliable day-to-day operation of the Golden Gate Bridge. The Bridge Division will continue to systematically address critical Bridge and facility maintenance issues including continuation of restoration and maintenance of the North Approach Viaduct. Modernization will continue to be a goal as the Division develops and tests more cost-effective maintenance practices, equipment and materials. In partnership with the Engineering Department, the Bridge Division has actively participated in the design and development of the Suicide Barrier, South Approach Security, Moveable Median Barrier, the National Science Foundation (NSF) Informal Science Education Exhibits Project and other critical projects. As they are implemented, these projects will also be a focus for the Bridge Division. The Bridge Division plans to continue its focus on staff and organizational development in recognition of the talented and dedicated workforce that is the heart of our operation. 54

57 FY 10/11 BRIDGE DIVISION GOALS AND PROJECTS Bridge Division Goals Maintenance Security Efficiency Service Systematically address most critical maintenance items identified in Bridge inspections. Enhance Bridge security through improvements to the security infrastructure and coordination with regional security agencies. Research, develop and implement cost-effective maintenance practices, equipment and materials. Focus on improving the efficiency of daily operations. Maintain focus on providing safe, efficient and reliable day-to-day operation of the Golden Gate Bridge. FY 10/11 Project Focus The following are capital projects that affect the Bridge Division and will be part of the District s workplan focus for FY 10/11. Please refer to the Bridge Division s Capital project detail for more description. Phase III Design Review Seismic Phase IIIA North Anchorage Housing/North Pylon Beam Span Repair Bridge and Facility Construction and Maintenance South Approach & Pier Security Improvements Moveable Median Barrier Toll Plaza East Lot Restroom Replacement Replace Crash Attenuators Electrical Service to North Approach Golden Gate Bridge Informal Science Education (NSF) All Electronic Tolling Phase I Main Cable Access & Equipment Toll Plaza Admin. Building Restroom Mod. & Sergeant s Counter 55

58 CHANGES FROM FY 09/10 ACTUAL TO FY 10/11 ADOPTED BUDGET Revenues The Bridge Division s FY 10/11 Adopted Revenue of $107.4 million consists of: $101.9 million from Toll Revenues $1.1 million from Grants and Other Operating Income $4.4 million from Interest Income The Bridge Division s Adopted Revenues for FY 10/11 are forecasted to increase by approximately $200,000, or 0.2%, from FY 09/10 Actual. This is largely due to a combination of a projected $1,300,000 increase in toll revenues (including $1,200,000 resulting from the new carpool toll), an increase of $283,000 * in funds from Caltrans for lane diversion services on Doyle Drive, offset by a decrease of $1,200,000 in Interest Income due to projected lower interest rates and budget policy not to budget for mark-tomarket adjustments. In addition, a decrease of $200,000 is projected for Other Operating Income due to a benefit cost reimbursement in FY 09/10 not budgeted to recur in FY 10/11. The projection for Bridge traffic is expected to increase slightly. Expenses The Bridge Division s FY 10/11 Adopted Operating Expenses total $60.8 million. The Bridge Division s Adopted FY 10/11 Budget contains a $0.5 million (0.8%) increase over FY 09/10 Actual expenses. The components of the changes to expense are summarized in the table on the following page. * FY 09/10 Actual includes funding of $437,000 from Caltrans for Doyle Drive lane diversion. Total annual funding will be $720,000 in FY 10/11 resulting in a $283,000 increase over FY 09/10. 56

59 SUMMARY OF CHANGES FROM FY 09/10 ACTUAL TO FY 10/11 ADOPTED BUDGET (ALL FIGURES IN MILLIONS) Labor Increase to salaries and payroll fringes due to re-funding of vacant positions, negotiated cost-of-living increase and an increase in PERS costs $0.2 Projected increase in medical expenses 0.3 Decrease in workers compensation (0.4) Increase in postemployment benefits (OPEB) 0.2 Professional Services Projected increase in legal fees and litigation costs 0.1 Decrease in bank fees (0.6) Increase in FasTrak consulting services 0.2 Supplies and Other Increase in repair parts and supplies 0.1 Increase in insurance due to higher premium costs 0.1 Increase in commercial paper debt service due to indenture budgeting requirements 1.3 Increase in staff development 0.1 Capital Contribution and Depreciation Decrease in capital contribution (1.0) Decrease in depreciation (0.1) Total Change from FY 09/10 Actual to FY 10/11 Adopted Budget $0.5 57

60 BRIDGE DIVISION OPERATING BUDGET FY 08/09 Actual FY 09/10 Budget FY 09/10 Actual FY 10/11 Adopted Budget Revenues Toll Revenues* $97,120,840 $99,830,000 $100,568,913 $101,900,000 Other Operating Income 688, , , ,000 State Operating Income 180, , , ,000 Local Operating Assistance Investment Income 8,773,610 5,200,000 5,634,097 4,400,000 Total Revenues $106,762,818 $105,586,000 $107,199,415 $107,379,000 Percent Change -1.1% 1.5% 0.2% Expenses Salaries $18,810,290 $19,292,500 $18,222,888 $18,392,900 Fringe Benefits 10,077,067 13,902,500 13,590,980 13,702,600 Professional Services 6,116,963 8,057,600 7,806,906 7,454,400 Fuel & Related Taxes 309, , , ,100 Repair & Operating Supplies 2,955,479 2,790,000 2,755,037 2,872,600 Insurance, Taxes & Permits 4,121,734 2,129,500 2,122,332 2,246,500 Staff Development 297, , , ,200 Leases & Rentals 16,984 52,600 35,296 43,800 Debt Service - Interest Expense 751,000 1,015, ,000 1,470,000 Subtotal Expenses $43,456,317 $47,952,000 $45,279,127 $46,868,100 Capital Contribution 6,000,000 10,000,000 10,000,000 9,000,000 Depreciation 5,031,849 5,141,500 5,007,584 4,901,800 Total Expenses $54,488,166 $63,093,500 $60,286,711 $60,769,900 Percent Change 15.8% -4.4% 0.8% Revenues Over/(Under) Expenses $52,274,652 $42,492,500 $46,912,704 $46,609,100 Southbound Traffic 19,066,406 19,000,000 19,294,780 19,350,000 * FY 10/11 Adopted Budget toll revenue has been adjusted to include a car pool toll approved by the Board of Directors in May,

61 Assumptions: Salary increase of 1.75% beginning January 1, 2011, for Represented and Non- Represented employees as agreed upon in the latest labor negotiations. Includes Employer PERS contribution of %. OPEB costs are included in Fringe Benefits and reflect adoption of GASB 45 which accrues for OPEB costs based on the Annual Required Contribution (ARC) for OPEB benefits. $2.35/gallon for fuel costs for the Bridge Division. All fiscal years show the transfer of District Division expense by line item. Bridge Division s share of the District Division transfer is $9.1 million. Salaries include approximately $327,000 for on-call toll collection employees that are not included in the division s authorized position listing. 59

62 BRIDGE DIVISION PERFORMANCE STATISTICS OPERATING REVENUE AS A PERCENTAGE OF TOTAL OPERATING EXPENSE 200% 150% 100% 164% 180% 168% 154% 154% 50% 0% FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 Bridge Toll Revenue $84,746,887 $85,042,784 $85,416,487 $97,120,840 $100,568,913 Other Operating Revenue 514,508 1,005, , , ,470 Total Operating Expense* 55,358,675 52,347,035 55,579,092 54,488,166 60,286,711 PERCENTAGE 154% 164% 154% 180% 168% * Total Operating Expense includes Depreciation and Capital Contribution. 60

63 FASTRAK MARKET SHARE 100% 90% 80% 46% 45% 42% 39% 37% 70% 60% 50% 40% 30% 54% 55% 58% 61% 63% 20% 10% 0% FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 Cash FasTrak FasTrak market share data includes customers whose toll tags do not read when passing through the Toll Plaza. The Customer Service Center processes these as valid FasTrak toll payments, although they originate as violations in the Toll Plaza. 61

64 AVERAGE TOLL PER SOUTHBOUND VEHICLE $6.00 $5.00 $4.00 $3.00 $5.09 $5.21 $2.00 $4.35 $4.30 $4.35 $1.00 $0.00 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 Total South Bound Vehicles 19,476,189 19,758,003 19,657,798 19,066,406 19,294,780 Bridge Toll Revenue $84,746,887 $85,042,784 $85,416,487 $97,120,840 $100,568,913 Average Toll $4.35 $4.30 $4.35 $5.09 $

65 BRIDGE DIVISION CAPITAL BUDGET Program Summary The FY 10/11 Capital Budget for the Bridge Division is shown in the table on the following page. Project descriptions can be found after the table. The FY 10/11 Capital Budget for the Bridge Division totals $36.7 million and represents 56% of the total agency's capital budget. Major continuing work and financial investment in FY 10/11 focuses on the Seismic Retrofit project. The FY 10/11 budget for Seismic Retrofit activities totals $30.3 million, which represents 83% of the Bridge Division s capital budget and 46% of the District s capital budget. The Seismic Retrofit expenditures in FY 10/11 will be 93% reimbursed with Federal grant funds secured to date in support of this project. Other major capital project activities in FY 10/11 include the final design of the South Approach and Pier Security Improvements (0805), preliminary studies and initial design of the Moveable Median Barrier project (0820), and the procurement of access systems and equipment to begin restoration work on the Main Cable (9826). FY 09/10 capital expenditures for the Bridge Division total $21.5 million, funded with $4.0 million or 19% District funds and $17.5 million or 81% in other grant funds. Details of last year s program are provided in Appendix C of this document. 63

66 BRIDGE DIVISION CAPITAL BUDGET FY 10/11 Total Prior FY 10/11 Future FY 10/11 Funding Project Number and Description Project Years Budget Years District Other Seismic Retrofit 9102 Seismic Phase III - Design Review $40,725,900 $5,858,400 $5,000,000 $29,867,500 3% 97% 9206 Seismic Phase IIIA North Anchorage Housing 119,231,200 33,508,100 25,000,000 $60,723,100 6% 94% 0823 Beam Span Repair 3,000, , ,000 $2,324, % 0% Total Seismic Retrofit $162,957,100 $39,742,300 $30,300,000 $92,914,800 7% 93% Continuing Projects 0804 TP Pavement & Access Improvements 0805 So. Approach & Pier Security Improvements $2,208,000 $2,196,300 $11,700 $- 100% 0% 5,000, ,700 2,000,000 2,388,300 20% 80% 0820 Moveable Median Barrier 25,000, ,100 1,000,000 23,013,900 14% 86% 0901 TP East Lot Restroom Replace 2,900,000 43, ,000 2,256,900 66% 34% 0905 Replace Crash Attenuators 1,500, ,000 1,250, % 0% 1004 Electrical Service to North Approach 1,610, ,000 1,510, % 0% 1034 Replace Hot Water Heater 10,000-10, % 0% 1035 GGB Informal Science Education (NSF) 1036 All Electronic Tolling Phase 1 3,499, , ,000 2,555,100 14% 86% 337, ,000 69, % 0% 1101 Capital Equipment Bridge 613, , % 0% 1102 Capital Equipment - Café & Gift Center 41,500-41, % 0% Total Continuing Projects $42,719,300 $4,282,100 $5,393,200 $33,044,000 31% 69% Revised Projects 9826 Main Cable Access and Equipment 0902 TP Admin Bldg Restroom Modifications $5,000,000 $819,700 $1,000,000 $3,180, % 0% 222,000-10, , % 0% Total Revised Projects $5,222,000 $819,700 $1,010,000 $3,392, % 0% Total Capital Expenditures $210,898,400 $44,844,100 $36,703,200 $129,351,100 14% 86% Capital Fund Source District $29,492,500 $5,826,700 $5,180,700 $18,485,200 Other 181,402,900 39,017,400 31,522, ,865,900 Total $210,898,400 $44,844,100 $36,703,200 $129,351,100 64

67 Bridge Division Capital Project Detail Seismic Retrofit Project 9102 Seismic Phase III - Design Review This project began in FY 02/03 and will complete the design of the final Phase of the Seismic Retrofit project. Project 9206 Seismic Phase IIIA This project began in FY 06/07 and will retrofit the North Anchorage Housing and North Pylon. Project 0823 Beam Span Repair This project was added to the budget in mid-fy 07/08 to prepare the design, calculations, plans and specifications to repair the Beam Span, a short segment of the Bridge that spans between the Marin Abutment and Bent N-11, the northern end of the truss spans. Continuing Projects Project 0804 TP Pavement & Access Improvements This project was initiated in FY 07/08 and will rehabilitate the Toll Plaza Employee Parking Lot and the underpass between the east and west lots and off-ramp from westbound Doyle Drive, which includes drainage and reconstruction of the east parking lot. This project will be completed in FY 10/11. Project 0805 South Approach & Pier Security Improvements This project began in FY 07/08 and will purchase and install security equipment necessary to support Bridge security initiatives. Project 0820 Moveable Median Barrier Initial crash tests and studies were performed in the late 1990s. Funding for this project was secured in FY 07/08 to install a moveable median barrier (MMB) to enhance the safety of the Golden Gate Bridge. The MMB will provide a physical barrier to separate opposing directions of traffic and eliminate crossover, head-on collisions. Project 0901 TP East Lot Restroom Replacement This project was added to the budget in FY 08/09 to replace the existing restroom facilities at the Toll Plaza East Parking Lot with new facilities to meet the demand at that location. Project 0905 Replace Crash Attenuators Initiated in FY 08/09, this project will replace the existing Toll Booth Stationary Crash Attenuators. FY 10/11 funds will be used to purchase 4 prototype crash attenuators. 65

68 Project 1004 Electrical Service to North Approach Due to air quality regulations, diesel fueled equipment, such as air compressors and generators, will not be allowed in the near future. This project will provide power to operate electrical equipment at the North Approach of the Golden Gate Bridge. Project 1034 Replace Hot Water Heater This project will replace the hot water heater in the Bridge Maintenance facility. Project 1035 Golden Gate Bridge Informal Science Education This project will develop and install interactive outdoor exhibits designed to engage visitors in understanding the historic and scientific impacts of the Golden Gate Bridge. Project 1036 All Electronic Tolling - Phase 1 This project was added to the budget in late FY 09/10, which is Phase 1 of the All Electronic Tolling project, primarily comprised of drafting a strategic implementation plan to assess the conversion to all electronic tolling. Project 1101 Capital Equipment - Bridge Annual purchase of capital equipment for the Bridge Division. Project 1102 Capital Equipment - Café and Gift Center Annual purchase of capital equipment for the Café and Gift Center. Revised Projects Project 9826 Main Cable Access and Equipment The initial inspection of this project began in Initially titled Main Cable Restoration, this project has been revised to Main Cable Access and Equipment and the project budget was reduced. The project is for the procurement of access systems and other specialized equipment to perform the restoration work on the main cable of the Golden Gate Bridge. Project 0902 Toll Plaza Administrative Building Restroom Modifications & Sergeants Counter Due to their physical proximity, the Toll Plaza Administrative Building Restroom Modifications project and the Sergeants Area Counter Modifications project were combined. The purpose of these projects is to modify these facilities in order to comply with ADA accessibility requirements. 66

69 GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT Bridge Division Personnel Summary by Department District Staffing by Dept. The Bridge Division FY 08/09 Year-End FY 09/10 Budget FY 09/10 Year-End FY 10/11 Budget Net Change FY 09/10 to FY 10/11 Bridge Toll Collection 211 Bridge Officer (4)/(d)* P.T. Bridge Officer Total (4) Bridge Service 212 Bridge Service Operator Bridge Service Supervisor Chief Bridge Service Operator Lane Worker P.T. Lane Worker Total Bridge Security 214 Bridge Captain Bridge Lieutenant Bridge Sergeant Bridge Patrol Officer Traffic Audit Specialist Total Bridge Electrical 221 Chief Electrician Chief Plumber Comm/Electronics Technician Electrical Superintendent Electrician Comm/Electronics Technician Supervisor Comm Systems Project Mgr Total * Elimination of positions pending meet and confer discussions. Legend: (a) Title Change; (b) Added Position; (c) Position Transferred; (d) Position Eliminated 67

70 GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT Bridge Division Personnel Summary by Department District Staffing by Dept. The Bridge Division FY 08/09 Year-End FY 09/10 Budget FY 09/10 Year-End FY 10/11 Budget Net Change FY 09/10 to FY 10/11 Bridge Paint 222 Bridge Painter Bridge Painter Apprentice Chief Bridge Painter Chief House Painter House Painter Paint Laborer Paint Superintendent Total Bridge Ironworkers 223 Apprentice Ironworker Ironworker Ironworker Superintendent Pusher Ironworker Total Operating Engineers 224 Chief Operating Engineer Operating Engineer Total Bridge Mechanics 226 Body Fender Mechanic Chief Mechanic Heavy Duty Mechanic Total Bridge Streets & Grounds 227 Cement Mason Chief Laborer Laborer Superintendent of Facilities & Maintenance Carpenter Total Legend: (a) Title Change; (b) Added Position; (c) Position Transferred; (d) Position Eliminated 68

71 GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT Bridge Division Personnel Summary by Department District Staffing by Dept. The Bridge Division FY 08/09 Year-End FY 09/10 Budget FY 09/10 Year-End FY 10/11 Budget Net Change FY 09/10 to FY 10/11 Bridge General & Admin 290 Administrative Assistant Deputy General Mgr., Bridge Division Security Emergency Mgt Specialist Total Bridge Division Totals Total Authorized Positions (4) Regular Positions Limited Term Positions Legend: (a) Title Change; (b) Added Position; (c) Position Transferred; (d) Position Eliminated 69

72 70

73 BUS DIVISION TABLE OF CONTENTS Bus Division Profile Bus Division Organizational Chart Bus Division Status FY 10/11 Bus Division Goals and Projects Changes From FY 09/10 Actual To FY 10/11 Adopted Budget Bus Division Operating Budget Bus Division Performance Measures Bus Division Capital Budget Bus Division Personnel Summary by Department

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75 BUS DIVISION PROFILE In November 1969, the California State Legislature authorized the District to develop a transportation plan for implementing mass transit in the Golden Gate Corridor. On January 3, 1972, bus service began from Sonoma and Marin Counties to San Francisco, after the private sector relinquished service operation. The Bus Division s emphasis is to provide these services in a cost-effective and fiscally responsible manner to best meet the transportation needs of the people, communities and businesses of San Francisco and the counties of Marin and Sonoma. The Bus Division strives to operate bus transit services that are an attractive alternative to travel by automobile. As such, bus transit services are reliable, comfortable, frequent, affordable and accessible. The Division has bus facilities located at four sites within its 60-mile-long service corridor, with the central facility for operations, maintenance and administration in San Rafael. Satellite facilities for bus storage and servicing are provided in San Francisco, Novato and Santa Rosa. The Bus Division operates an active fleet of 204 diesel buses, including three (3) buses leased to a private operator for contracted bus commuter services. The Bus Division provides the following bus transit services for approximately 7.4 million annual customers traveling 6.1 million miles: Peak-period bus transbay intercounty commute service to reduce peak-period traffic and congestion on the U.S. Highway 101/Golden Gate Corridor. Basic weekday and weekend transbay and intercounty bus transit service to reduce traffic on the Bridge and provide general mobility along the Golden Gate Corridor. Local bus service provided under agreements with Marin County Transit District and other entities that fully subsidize such services. Intercounty (Sonoma/Marin and East Bay/Marin) bus service not directly related to the Golden Gate Bridge. 73

76 BUS DIVISION ORGANIZATIONAL CHART Deputy General Manager - Bus Maintenance Sche duling Transit Operations Body Shop & Facility Maintenance Revenue Vehicle Maintenance & Stores Safety Training Dispatch Bus Operators Transportation Supervisors 74

77 BUS DIVISION STATUS While some might think this fiscal year s work scope in the Bus Division sounds similar to those of earlier years, it is not really the case. The Bus Division will begin the new fiscal year with several leadership changes, resulting from the exodus of two additional 30-year employees in These departures created an unprecedented opportunity to reorganize the Operations Department without affecting any incumbent employees, and also created promotional possibilities for current employees who prepared themselves for leadership roles. The constant review of business process and culture change initiatives will continue to receive heightened attention as the Bus Division prepares for the challenges it faces over the next three years. Preparing Employees for Current and Future Roles To prepare for future demands, organizational development will be a key goal for Bus Division managers. Not only are the two director level positions (Operations and Maintenance) filled with recently promoted employees, the mid-level manager positions are filled by front-line supervisors who moved into higher level roles for the first time. Staff must quickly respond to changing needs and be poised to do so with appropriate skill sets. In addition to relying on external training resources, the group will tap the District s internal resources for staff development and team building. Organizational needs will reach all levels of the Bus Division. A revised driver recruitment and selection procedure, developed in 2009, has identified better Bus Operator candidates. Two classes subject to the new process yielded more graduates (a 95 percent rate) than did the prior selection process, which averaged a 35 percent failure rate over the past several years, and, at times, a more than 50 percent wash-out rate. The annual VTT training (Bus Operator training required under State law) includes a module on customer service and District values and ties the training directly to findings and outcomes of the District s passenger survey completed last year. Managers will be charged with improving attendance in various work groups and reducing overtime costs. This will require the cooperation of the Bus Division s Union partners and strides have already been made in this area through collective bargaining in some units. The partnership approach resulted in specific language that takes into account both parties needs and attempts to work collaboratively. Employee committees will continue to be important in achieving the work of the Division. These include Labor-Management groups for Safety, Scheduling and Run Book, Driver Technology, and Marketing and Outreach. Special ad hoc committees are created on an as needed basis. A Bus Roadeo Committee will organize a Fall competition to take place along with other recognition activities. The Bus Division will continue to actively participate in the Service Review Committee (SRC) and will lead the cross-functional Bus Customer Service/Operations Committee (BCS). While SRC meets monthly to address service planning and analysis issues, the BCS meets weekly to assess what is being done right and where improvement is needed. Customer complaints are 75

78 monitored for trends, as well as for specific incidences. Planning for specific project implementations is also done at these meetings since key departments are represented at the table. During FY 10/11, the Bus Division will also develop employee communication programs to focus on the metrics of the operation. Metrics are tracked for various reporting purposes, but no ongoing standard program has been set forth to remind employees what the goals are, or how they are being reached. This program will help demonstrate safety, productivity and accountability in the hope of favorably impacting morale. Meeting Customer Needs Of course, the customer is any business reason for being and many initiatives are underway to meet Golden Gate Transit s customer needs. A new initiative will be structured in FY 10/11 to address bus stops. With more than 1,000 bus stops (including shared stops with Marin and Sonoma Counties) and no cohesive plan to design or maintain them, it is long overdue that a comprehensive approach be developed for bus stop placement, design, passenger amenities and maintenance. Several funding sources have been identified and joint project opportunities exist for some components of the effort. The District will embark on a phased approach for bus stop assessment and management, with this fiscal year s emphasis being on developing a standard graphic look for the stops and upgrading signage in the San Francisco Financial District. The District will also partner with Marin Transit to identify a unified look for shared stops. The District will expand its over-the-road (OTR) coach fleet in early FY 10/11. With the addition of 23 new coaches, the OTR fleet will grow to 75 buses. This is important because in September 2010, the District will realign some of its duplicative and low productivity services as a cost savings measure. As coach capacity increases, trips can be consolidated in U.S. Hwy 101 Corridor service and in other geographic areas. Throughout the year, the Bus Division will continue its practice of monitoring routes for productivity and will continue to streamline and consolidate services where appropriate. Marin Transit s recently integrated hybrid buses also will allow the District to explore alternative-powered vehicles. The District will continue to participate in and lead the Zero Emission Bus (ZEB) Task Force working group at not only the regional level but State level as well. Last summer, the District implemented an express weekday service from Santa Rosa to San Francisco, with limited Marin County stops. The reconfigured service was a success with customers and drivers alike and will now be implemented during peak weekend hours on Saturdays. Sonoma customers will have basic hourly service on Route 80 and express hourly Saturday service, essentially giving customers 30-minute service during critical periods. This service will be funded by reallocating resources from less productive services. This service option is also significant in that customers and drivers will benefit from more balanced passenger loads. Currently, overcrowding is common on this weekend service. The District is operating the Muir Woods Shuttle at Marin Transit s request, after no transit providers responded to the service request for proposal. 76

79 Bus Division staff will take customer considerations into account as it participates in several other highway and transit project initiatives including Doyle Drive, the Transbay Transit Center in downtown San Francisco, Santa Rosa Transit Mall, Van Ness Bus Rapid Transit Project and SMART rail stations including the San Rafael Transit Center. Building for the Future FY 10/11 will be a pivotal year for several facilities upgrades in the queue. In addition to constructing a new Bus Wash Facility in San Rafael with a water reclamation component (using ARRA Tier 2 funds), other facilities modifications will take place. These include restroom upgrades in San Rafael and Santa Rosa, door modifications for persons using wheelchairs and pursuing green initiatives throughout District facilities. Smaller construction projects are also slated, but the biggest facilities project will be planning for relocation of the San Francisco midday parking lot to a smaller site. This relocation will have many operational impacts ranging from the way buses are parked, to limited driver relief areas and vehicle maintenance constraints due to the limited space. The Bus Division is preparing for its future through its involvement in several key technology implementation projects including Hastus scheduling and dispatching upgrades, Maintenance Management Information Systems (Maximo and EJ Ward), the ACIS (Advanced Communication Information System) radio project and installation of Wi-Fi on buses. Additionally, farebox value cards will be phased out as the District continues to support the Bay Area s Clipper SM (formerly TransLink ) electronic fare collection system. In addition to these activities, the Bus Division will continue to provide safe, reliable service on the street. Golden Gate Transit, known for its service quality in the Bay Area, will not lose sight of its daily obligations to sustain and maintain its services. The ongoing commitment to customers, both internal and external, will remain intact. 77

80 FY 10/11 BUS DIVISION GOALS AND PROJECTS Bus Division Goals Maintenance Access Efficiency Improve Bus Fleet configuration and preventive maintenance to meet customer needs and comply with various laws/regulations. Expand opportunities for external customer convenience at bus stops, during travel, and for providing input on Golden Gate Transit services. Partner with internal customers to provide the best service. Support and implement technology projects and process and procedure improvements to increase operation, performance and safety costeffectiveness. FY 10/11 Project Focus The following are capital projects that affect the Bus Division and will be part of the District s workplan focus for FY 10/11. Please refer to the Bus Division s Capital project detail for more description. Employee Parking/Bus Lot Entrance/Landscaping Replace Main Shop Roof at D1 Highway 101 Bus Pad Improvements Remodel Restrooms at D3 Wireless Internet Access on Buses Body Shop Roof Replacement Facilities San Rafael Transit Center Improvements San Rafael Data Center Replace D1 Bus Wash Racks & Water Recycling Systems Install Bike Racks at San Rafael Transportation Center (SRTC) New San Francisco Bus Facility Modifications Security Upgrade at Novato Renovate San Rafael Drivers Restroom & Payroll Renovation Bus Operations Replace Over the Road Coaches Data Center Disaster Recovery (Hastus) Replace Fareboxes Install Particulate Traps Advanced Communication & Information System Replace Buses Purchase 12 Paratransit Vans Bus Stop Shelter/Signage Program 78

81 CHANGES FROM FY 09/10 ACTUAL TO FY 10/11 ADOPTED BUDGET Revenues The Bus Division s FY 10/11 Adopted Revenues of $39.3 million consists of: $10.9 million from Regional Fares $10.9 million from Federal, State and Local Operating Grants $3.5 million from Other Operating Income $14.0 million from the Marin Local Service Contract The Bus Division s Adopted Revenues for FY 10/11 are projected to increase $0.2 million (0.4%) compared to FY 09/10 Actual. The increase is primarily due to an increase in funding of $3.2 million from State Transit Assistance (STA) offset slightly by a $0.4 million decrease in TDA funding. In addition, this increase is further offset by a projected $1.4 million decrease in contract revenue from the Marin County Transit District and a $0.6 million decrease in advertising and lease revenue. Total overall patronage is forecasted to decrease 6% from the previous year. Decreased ridership, combined with a 5% regional fare increase, is projected to result in decreased transit revenues of approximately $0.6 million (5.5%) compared to FY 09/10 Actual. Expenses The Bus Division s FY 10/11 Adopted Operating Expenses total $80.4 million. The Bus Division s FY 10/11 Adopted Budget contains a $4.2 million (5.6%) increase in operating expenses over FY 09/10 Actual expenses. The components of the changes to expense are summarized in the table on the following page. 79

82 SUMMARY OF CHANGES FROM FY 09/10 ACTUAL TO FY 10/11 ADOPTED BUDGET (ALL FIGURES IN MILLIONS) Labor Re-funding of vacant positions and negotiated cost-of-living increase to salaries and payroll fringes $0.8 Projected increase in medical expenses 0.4 Increase in postemployment benefits (OPEB) 0.5 Increase in the District s contribution to the ATU pension and PERS plan 0.5 Decrease in workers compensation (0.3) Professional Services Increase in cost for Hastus milestone upgrades 0.2 Increase in legal fees and litigation costs 0.1 Supplies and Other Increase to fuel costs projected at $2.35/gallon 0.5 Decrease in repair parts and maintenance supplies (0.2) Increase in purchased transportation cost 0.4 Increase in lease and rental fees 0.1 Increase in staff development 0.1 Capital Contribution and Depreciation Increase in capital contribution for District funded Bus projects 1.0 Increase in depreciation 0.1 Total Change from FY 09/10 Actual to FY 10/11 Adopted Budget $4.2 80

83 BUS DIVISION OPERATING BUDGET FY 08/09 Actual FY 09/10 Budget FY 09/10 Actual FY 10/11 Adopted Budget Reve nues Transit Fares $11,804,273 $12,368,700 $11,539,935 $10,903,300 Other Operating Income 4,370,131 3,663,300 4,167,245 3,547,900 State Operating Income 11,116,482 8,962,000 8,049,311 10,845,000 Federal Operating Income 301,815 37,500 37,500 39,000 Other Operating Income (MCTD) 14,790,188 14,500,000 15,342,979 13,970,000 Total Revenues $42,382,889 $39,531,500 $39,136,970 $39,305,200 Percent Change -6.7% -1.0% 0.4% Expenses Salaries $33,812,541 $34,156,500 $33,703,696 $34,739,400 Fringe Benefits 25,993,100 26,254,200 25,949,444 26,715,900 Professional Services 2,628,416 3,008,700 3,037,265 3,455,100 Fuel & Related Taxes 3,953,569 3,921,500 3,863,900 4,338,300 Repair & Operating Supplies 2,887,333 3,044,200 3,069,497 2,888,300 Insurance, Taxes & Permits 729,165 1,337,700 1,309,559 1,351,100 Purchased Transportation 1,757,227 1,920,900 1,439,347 1,818,200 Staff Development 324, , , ,500 Leases & Rentals 1,224,337 1,297,200 1,295,959 1,357,800 Subtotal Expenses $73,310,228 $75,324,000 $73,917,044 $77,065,600 Capital Contribution 800,000 1,000,000 1,000,000 2,000,000 Depreciation 1,291,676 1,235,900 1,275,339 1,363,500 Total Expenses $75,401,904 $77,559,900 $76,192,383 $80,429,100 Percent Change 2.9% -1.8% 5.6% Revenues Over/(Under) Expenses ($33,019,015) ($38,028,400) ($37,055,413) ($41,123,900) Patronage 7,158,469 7,278,600 6,514,057 6,120,000 81

84 Assumptions: A 1.75% salary increase for Coalition-represented and non-represented employees effective January 1, 2011, and assumes no salary increase effective March 1, 2011, for ATU represented employees pending future contract negotiations. Includes ATU Pension contribution (17.165%) and Employer PERS contribution (16.372%). OPEB costs are included in Fringe Benefits and reflect adoption of GASB 45 which accrues for OPEB costs based on the Annual Required Contribution (ARC) for OPEB benefits. $2.35/gallon for fuel costs for the Bus Division. All fiscal years show the transfer of District Division expense by line item. The Bus Division s share of the District Division transfer is $10 million. Salaries include approximately $106,000 to fund casual traffic checkers that are not included in the division s authorized positions listing. 82

85 BUS DIVISION PERFORMANCE MEASURES BUS TRANSIT FARE RECOVERY 35% 30% 25% STANDARD 20% 27% 27% 15% 25% 24% 23% 10% FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 Data calculations do not include Purchased Transportation Paratransit and Club Bus expenses or contracted Marin Local Service expenses. Measure: Fare Recovery Fare revenue as a percentage of operating expense. Standard: Standard is 25%, based on Short Range Transit Plan (SRTP). 100% BUS TRANSIT PERCENTAGE OF TRIPS OPERATING ON-TIME 90% STANDARD 80% 70% 60% 50% 40% 85% 91% 91% 91% 89% 30% 20% 10% 0% FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 Measure: Scheduled service times and actual services times at key time points. Standard: Operate on-schedule 90% of the time, based on SRTP. 83

86 BUS MECHANICAL FAILURE RATE ALL CHART NUMBERS IN THOUSANDS STANDARD FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 Mechanical Failures Revenue Miles 5,079,192 5,110,335 5,286,415 5,385,455 4,826,547 Miles/Breakdown 13,581 16,810 15,733 15,170 13,779 Measure: Miles between in-service mechanical failures. Standard: No more frequent that one per every 20,000 miles, based on SRTP. 84

87 BUS ACCIDENT RATE ALL CHART NUMBERS IN THOUSANDS STANDARD FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 Accidents Revenue Miles 5,079,192 5,110,335 5,286,415 5,385,455 4,826,547 Miles/Accident 564, , , , ,913 Measure: Miles between in-service accidents. Standard: No more frequent that one per every 400,000 miles, based on SRTP. 85

88 BUS PASSENGERS PER TRIP STANDARD 15 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 All Bus Trips Measure: Bus Passengers per trip. Standard: 20 or more, based on SRTP. Note: Some Performance Measures data for previous years has been amended due to final audit adjustments. 86

89 BUS DIVISION CAPITAL BUDGET Program Summary The FY 10/11 Capital Budget for the Bus Division is shown in the table on the following page. Project descriptions can be found after the table. The FY 10/11 Capital Budget for the Bus Division totals $11.1 million and represents 17% of the total agency's capital budget. Major work and financial investment in FY 10/11 focuses on continuing projects such as the Advanced Communications and Information System (ACIS) project (0502), the bus wash rack replacement project at the San Rafael Bus Facility (0811) and modifications to the new San Francisco bus storage facility (1018). Previous FY 09/10 capital expenditures for the Bus Division totaled $22.8 million, funded with $2.0 million, or 9%, District funds and $20.7 million, or 91%, Other (grant) funds. Details of last year s program are provided in Appendix C of this document. 87

90 BUS DIVISION CAPITAL BUDGET FY 10/11 Total Prior FY 10/11 Future FY 10/11 Funding Project Number And Description Project Years Budget Years District Other New Projects 1103 Employee Parking/Bus Lot Entrance/Landscaping 1104 Replace Main Shop Roof at D1 $984,000 $- $100,000 $884,000 20% 80% 700, , ,000 20% 80% 1106 Remodel Restrooms at D3 25,000-20,000 5, % 0% 1107 Replace Over the Road Coaches 1108 Wireless Internet Access on Buses 1109 Data Center Disaster Recovery (Hastus) 18,960,000-50,000 18,910,000 19% 81% 172,000-10, , % 0% 54,200-54, % 0% Total New Projects $20,895,200 $0 $334,200 $20,561,000 20% 80% Continuing Projects 9707 Replace Fareboxes $3,355,100 $3,229,500 $126,500 $- 20% 80% 0312 Install Particulate Traps 2,000,000 1,144,000 50, ,000 20% 80% 0502 Adv. Comm & Info System (ACIS) 19,343,000 3,489,300 5,000,000 10,853,700 0% 100% 0713 Body Shop Roof Replacement 772, ,400 7,600-46% 54% 0808 Replace 23-45' Buses 13,929,800 12,549,000 1,380,800-8% 92% 0809 SR Transit Center Improvements 100,000 5,600 10,000 84,400 0% 100% 0810 SR Data Center 2,451,900 2,228, , % 93% 0811 D1 Wash Racks & Water Recl 2,670, ,400 1,500, ,600 1% 99% 0821 Perim. Security & Surv. Equip. 877, , ,400-24% 76% Hybrid Buses (MCTD) 4,628,000 4,536,300 91,700-0% 100% 1010 Install Bike Racks at SRTC 35,000 1,800 23,000 10,200 34% 66% 1017 Paratransit Vans (8 Cutaways, 4 Minivans) 804, , ,800 0% 100% 1018 New SF Bus Facility Mods 3,500,000 2,900 2,000,000 1,497,100 20% 80% 1110 Bus Capital Equipment 183,500-98,500 85, % 0% Total Continuing Projects $54,649,700 $29,040,500 $10,628,300 $14,980,900 7% 93% Revised Projects 1007 Security Upgrade at Santa Rosa 1008 Renovate SR Drivers' Restroom/Payroll Renovation 1009 Bus Stop/ADA Site Improvements $866,700 $- $50,000 $816,700 25% 75% 795,000 36,200 30, ,800 20% 80% 1,000,000-50, ,000 20% 80% Total Revised Projects $2,661,700 $36,200 $130,000 $2,495,500 22% 78% Total Capital Expenditures $78,206,600 $29,076,700 $11,092,500 $38,037,400 11% 89% Capital Fund Source District $8,698,300 $2,578,500 $873,100 $5,246,700 Other 69,508,300 26,498,200 $10,219,400 32,790,700 Total $78,206,600 $29,076,700 $11,092,500 $38,037,400 88

91 Bus Division Capital Project Detail New Projects Project 1103 Employee Parking/Bus Lot Entrance/Landscaping This is a combination of three improvement projects within the same vicinity at the San Rafael facility: resurface the employee parking lot, repair the D-1 bus lot entrance, and replace landscaping and the irrigation system on Andersen Drive. Project 1104 Replace Main Shop Roof at D1 This project will replace the Main Shop Roof at the San Rafael bus facility. Project 1106 Remodel Restrooms at D3 This project will replace the deteriorated toilet fixtures, partitions, sinks and counter tops at the Santa Rosa Bus Facility. Project 1107 Replace 30-45' Over the Road Coaches This project is to replace 30-45' Over the Road Coaches that have reached the end of their useful service life. Project 1108 Wireless Internet Access on Buses This technology project will implement the installation of wireless access systems on all buses. Project 1109 Data Center Disaster Recovery (Hastus) This project will provide a second copy of the Hastus system at the Bridge Data Center to be available in the event the San Rafael Data Center is lost. The project will include software and hardware. Continuing Projects Project 9707 Replace Fareboxes This project was initiated several years ago to replace the existing 23-year-old fare collection system on Golden Gate Transit buses with a more advanced and comprehensive system that provides detailed revenue and ridership reporting. Project 0312 Install Particulate Traps This project began in 2003 to install particulate matter traps on Golden Gate Transit buses to reduce emissions and improve air quality consistent with California Air Resources Board (CARB) mandated requirements. Project 0502 Advanced Communication and Information System This project began in 2005 to replace the District's radio communications system, and includes: automatic vehicle location system; mobile data terminals; computer-aided bus dispatch systems; real time information systems for customers; new software for planning, scheduling and customer services; integration of all new services with the existing systems. 89

92 Project 0713 Body Shop Roof Replacement This project, initiated in FY 2007, replaces the existing 33-year-old roof on the Bus Division's body shop. The project will be closed out in FY Project 0808 Purchase 23-45' Buses This project, initiated in FY 2008, is to purchase 23-45' replacement buses that have reached the end of their useful service life. Project 0809 San Rafael Transit Center Improvements This project, initiated in FY 2008, will include wayfinding signage and safety improvements at the San Rafael Transit Center. Project 0810 San Rafael Data Center This project began in FY 2008 and will build a data center at the Golden Gate Transit Bus facility in San Rafael. Project 0811 Replace D1 Bus Wash Racks & Water Recycling Systems This project formerly included both the San Rafael and the Santa Rosa Bus Facilities, but has been revised to replacing just the Bus Wash Racks system at the San Rafael Bus Facility, which is 25-years old. Replacement of the bus wash rack system at Santa Rosa will be under consideration at a later time. Project 0821 Perimeter Security & Surveillance Equipment This project was initiated in FY 07/08 to install security and surveillance equipment at the San Rafael Bus Facility. Project 0908 Purchase 7-35 Hybrid Buses (for MCTD) This project, initiated in FY 08/09, will replace buses that have reached the end of their useful service life with seven 35-foot buses in partnership with Marin Transit District. Savings may be realized in diesel fuel expenses. Project 1010 Install Bike Racks at SRTC The project will purchase and install additional bike racks at the San Rafael Transit Center. Project 1017 Purchase 12 Paratransit Vans This project will replace paratransit vans that have reached the end of their useful service life. Project 1018 New SF Bus Facility Modifications The District is entering into a long term lease for bus storage at a new site in San Francisco. This project will include construction of surfacing, subgrade, drainage, lighting, fencing and incidentals at this site. Project 1110 Capital Equipment - Bus Annual purchase of capital equipment for the Bus Division. 90

93 Revised Projects Project 1007 Security Upgrade at Novato This project location has been moved from Santa Rosa to Novato. The project involves enhancing security measures such as perimeter fencing, electronic gates, access control, and cameras with live monitoring capability. Project 1008 Renovate San Rafael Drivers' Restroom and Payroll Renovation This San Rafael Drivers' Restroom project has been combined with the Payroll Renovation project due to their proximity to each other. The combined project will renovate the drivers restroom and lockers and the payroll office at the Golden Gate Transit bus facility in San Rafael. Project 1009 Bus Stop Shelter/Signage Program This project has been expanded to evaluate and develop a system wide Bus Stop Shelter/Signage Improvement program. 91

94 GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT Bus Division Personnel Summary by Department District Staffing by Dept. The Bus Division FY 08/09 Year-End FY 09/10 Budget FY 09/10 Year-End FY 10/11 Budget Net Change FY 09/10 to FY 10/11 Bus Operations Admin 311 Dispatcher I (1)/(d) Dispatcher P.T /(b) Safety/Training Coordinator Office Coordinator Superintendent Transportation/ Safety Training Director of Operations Transportation Supervisor Superintendent Transportation Operations Transportation Supervisor/ Student Training Bus Operations Administrator Director of Bus Administration Total Bus Operators 312 Bus Operators Total Bus Maintenance Admin 321 Director of Maintenance Maintenance Superintendent Office Assistant Office Specialist Shop Facilities Superintendent Administrative Assistant Total Legend: (a) Title Change; (b) Added Position; (c) Position Transferred; (d) Position Eliminated 92

95 GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT Bus Division Personnel Summary by Department District Staffing by Dept. The Bus Division FY 08/09 Year-End FY 09/10 Budget FY 09/10 Year-End FY 10/11 Budget Net Change FY 09/10 to FY 10/11 Bus Maint-Mech/Stores 322 Automotive Painter Body & Facility Chief Mechanic Body & Fender Mechanic Building Maintenance Mechanic Chief Mechanic (Day) Chief Mechanic (Grave) Chief Mechanic (Swing) Farebox Repair/Welder Mech Machinist Maintenance Trainer Bus Mechanic (Automotive) Mechanic (Day) Mechanic (Electronics Tech) Mechanic (Electronics Tech II) Mechanic (Grave) Mechanic (Swing) Lead Body Mechanic Mechanic Leader (Day) Storekeeper (Day) Storekeeper (Grave) Storekeeper (Swing) Storekeeper Chief Trimmer Total Bus Maint Servicers 323 Bus Servicer Leader (Day) Bus Servicer Leader (Swing) Servicer (Day) Servicer (Swing) Total Bus Procurement 340 Buyer Senior Buyer Total Legend: (a) Title Change; (b) Added Position; (c) Position Transferred; (d) Position Eliminated 93

96 GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT Bus Division Personnel Summary by Department District Staffing by Dept. The Bus Division FY 08/09 Year-End FY 09/10 Budget FY 09/10 Year-End FY 10/11 Budget Net Change FY 09/10 to FY 10/11 Bus General & Admin 390 Administrative Assistant Deputy General Mgr, Bus Lead Route Checker Scheduling Coordinator Scheduling Superintendent Transit Scheduler Total Bus Division Totals Total Authorized Positions Regular Positions Limited Term Positions Legend: (a) Title Change; (b) Added Position; (c) Position Transferred; (d) Position Eliminated 94

97 FERRY DIVISION TABLE OF CONTENTS Ferry Division Profile Ferry Division Organizational Chart Ferry Division Status FY 10/11 Ferry Division Goals and Projects Changes From FY 09/10 Actual to FY 10/11 Adopted Budget Ferry Division Operating Budget Ferry Division Performance Measures Ferry Division Capital Budget Ferry Division Personnel Summary by Department

98 96

99 FERRY DIVISION PROFILE In November 1969, the California State Legislature authorized the District to develop a plan for mass transit in the Golden Gate Corridor. The plan called for all forms of transit, including ferry. On August 15, 1970, the District began its ferry service from Sausalito to San Francisco. In 1976, ferry service began between Larkspur and San Francisco. The Ferry Division is responsible for the operation of 7 vessels, 3 conventional monohull Spauldings and 4 high-speed catamarans operating the following routes for a total of approximately 17,600 yearly crossings: Larkspur/San Francisco/Larkspur 41 weekday crossings, 9 weekend crossings. Sausalito/San Francisco/Sausalito 18 weekday crossings, 13 weekend crossings. Seasonal service from Larkspur to AT&T Park; approximately 168 crossings (depending on the San Francisco Giants schedule). Special service runs are provided for Board of Directors authorized special events such as the Bay to Breakers. The Ferry Division is also responsible for the daily maintenance of all its vessels, landside terminal operations, fuel storage and the Larkspur Ferry Terminal parking lot. The Deputy General Manager of the Ferry Division is responsible for three (3) major organizational units: Vessel Operations Includes all Vessel Masters and Deckhands. Vessel Maintenance Includes Vessel Mechanics, Marine Engineer and Superintendent. Terminal Operations Includes Terminal Assistants and Ticket Agents. The Ferry Division recently completed a number of vessel and terminal upgrades and refurbishments with additional improvements planned for the marine facilities and vessels over the next 12 months. 97

100 FERRY DIVISION ORGANIZATIONAL CHART Deputy General Manager - Ferry Vessel Operations Vessel Maintenance & Stores Terminal Operations 98

101 FERRY DIVISION STATUS Preparing For The Future Beginning in July of 2009 and continuing throughout the fiscal year, the Ferry Division has completed and begun a number of significant projects that are consistent with the stated priorities. The Ferry Division has been particularly busy with a number of projects that will upgrade our equipment on the water side and ensure reliable efficient service for our customers well into the future. The major event for 2010 will be the redelivery of the M.V. Del Norte (high-speed ferry) with four brand new engines. With the completion of the refurbishment of the M.V. Napa and the M.V. Golden Gate, we will have a spare high-speed vessel to place into service during mechanical difficulties or scheduled maintenance. Our customers have become dependent on the high-speed vessels as they make the crossing 15 minutes faster than the conventional, older Spaulding vessels. The repower of the M.V. Del Norte included replacement of the old water jets with larger refurbished jets, refurbished reduction gears and new electrical generators. The project was 95% grant funded by the Bay Area Air Quality Management District (BAAQMD) Carl Moyer grant program and the Federal Transit Administration (FTA). These engines are the latest technology and comply with recent CARB and Environmental Protection Agency (EPA) regulations. With the addition of the M.V. Del Norte, the Golden Gate fleet now has a much needed back-up vessel. In January 2009, the District purchased two surplus high-speed vessels from Washington State Ferries: The M.V. Chinook (Golden Gate) and M.V. Snohomish (Napa). In May of 2009, the M.V. Snohomish, after undergoing a minor refurbishment, was delivered to the Golden Gate Ferry and was renamed the M.V. Napa. The vessel was then placed into service to maintain the weekday high-speed ferry schedule while the M.V. Del Norte was removed from service to receive new engines and much needed upgrades of other major equipment. The M.V. Chinook was renamed the M.V. Golden Gate in March In late 2009, the District awarded a contract for the engineering services necessary to completely re-power and refurbish these two vessels. The engineering package is now complete and the first vessel, M.V. Golden Gate, was scheduled to be delivered to a shipyard and begin its transformation in April This repower/refurbishment is being funded primarily with FTA/FTA ARRA (90%) and District (10%) funds. The M.V. Golden Gate is scheduled to be completed in October 2010, and once it is redelivered to the District, the M.V. Napa will be sent to the shipyard to receive the same upgrades. Both vessels will be completely refurbished including new seating, installation of a new snack bar, replacement of deck coverings (tile and carpet) and a general upgrade of passenger amenities. Each vessel will also be retrofitted with new main engines, reduction gears and electrical generators. 99

102 The Spaulding Vessels, M.S. Marin, M.S. San Francisco and the M.S. Sonoma, received a series of upgrades: These upgrades include the purchase of new stainless steel spare propellers to replace the aging bronze propellers presently installed on the Spaulding vessels; new replacement seats installed to maintain the vessels in decent condition until they are refurbished; and the completion of major scheduled maintenance on the main engines to ensure that they will be reliable until new engines can be installed in the Spaulding vessels, as scheduled for in the next three years. In addition to the vessel upgrades, there are many shore side projects underway as well. This year, the engineering for new accessible restrooms at the Larkspur Ferry Terminal was completed and a construction contract was awarded. Construction began in February and is expected to be complete before summer The new restrooms will be on the south end of the enclosed, heated passenger waiting area and will meet all the current requirements of the Americans with Disabilities Act (ADA). To reduce costs and improve the customer experience, the District is committed to automating ticket sales and has completed the specifications necessary to acquire the appropriate equipment. If everything goes as planned, we may see installation of this equipment in Early this year, an engineering contract was awarded to begin the process of evaluating the existing facilities, developing and exploring concepts for new improved facilities, preparing the necessary documents for the environmental process and developing the detailed design and contract documents necessary to issue a request for bid (RFB) for construction. To date, we have reviewed a number of interesting concepts and will hopefully decide on a preferred design sometime early this Spring A request for proposals (RFP) has been issued to secure the design services necessary to prepare the drawings and bid specifications to accomplish a much needed refurbishment of the maintenance shops at the Larkspur Ferry Terminal. The shop spaces and adjoining supporting offices have not been upgraded since they were built in the 1970 s. Various equipment is outdated and in some cases non-existent. This project is 80% grant funded from the Federal Transit Administration (FTA) and 20% District funded. The District is issuing a request for proposals (RFP) necessary for the design and installation of a new modern system to monitor activities and procedures in and around the four above-ground fuel tanks. Installation will take place over the next 18 months. For the past year, the District has been working towards implementing a new asset management system. The software used to support this approach is named Maximo, and the program is geared towards asset management and planned maintenance. This maintenance management information system will be key in supporting a more structured and planned approach to maintaining the vessels and terminals. 100

103 Another Busy Year On The Way In the coming year, we will continue our focus on upgrading equipment and ensuring that back-up vessels are available to maintain regularly scheduled service during times of mechanical difficulties and planned maintenance. At the same time, projects are planned to focus on system upgrades that will improve the customer experience and result in operational efficiencies. The Ferry Division will continue its aggressive transition to Clipper SM (previously known as TransLink electronic fare media). For those customers who do not regularly use public transportation and may not have Clipper SM, we are actively exploring the use of ticket vending machines. Each terminal is planned to have multiple machines to eliminate long waits to purchase tickets. This year, the public restrooms at the San Francisco Terminal will undergo a major refurbishment. The design and bid documents are currently underway. The District is working to secure the balance of funding necessary to complete the construction needed to rebuild the District s marine facilities. We anticipate completion of the design documents, including bid specifications sometime in early The planning and engineering will begin in the next several months for a major refurbishment of at least one more Spaulding vessel, the M.S. San Francisco. 80% in grant funding has been secured for this refurbishment and the process for selection of an engineering firm is underway. The project will be similar to the refurbishment of the M.S. Marin several years ago, but is likely to include a major repower (replacement of main engines and other drive-line equipment) as well. Final disposition of the third Spaulding vessel, M.S. Sonoma, has yet to be determined. Availability of funding and service demands will be key factors in the final decision. This year, the M.V. Mendocino will be scheduled for an extensive dry-docking to undertake some significant repairs and improvements, as well as a much needed complete paint job. Once again, Golden Gate Ferry will lead and sponsor a Bay Area wide training exercise that will test the capacity of the ferry operators and other agencies in responding to a marine emergency. The exercise is currently scheduled for October 2010 and will involve the participation of the California Maritime Academy and a number of law enforcement and emergency response units. Rebuilding For The Future Since 2005, the District has been busy adding to and rebuilding its ferry fleet. The recent acquisition of the two high-speed vessels from Washington State Ferries brings the number of District vessels to seven: Four high-speed and three conventional Spaulding class vessels. The addition of the high-speed vessels was critical, as the District now has a spare vessel to use in times of planned maintenance and/or unanticipated mechanical difficulties. The fourth high-speed vessel s refurbishment is scheduled to be complete in 101

104 early 2011, at which time this vessel will also be available for service. While it is not yet determined how the vessel will be used, with the historical trend for increased ferry ridership and the questions surrounding possible traffic delays associated with the Doyle Drive reconstruction project, that question may be answered very soon. While it is likely the District will not retain all three of its Spaulding class vessels, the two that are retained will have been completely refurbished and new engines installed by This, along with the planned replacement/upgrade of its terminal and marine facilities, positions the District perfectly to respond to future growth and ferry service demands from the North Bay. 102

105 FY 10/11 FERRY DIVISION GOALS AND PROJECTS Ferry Division Goals Maintenance Maintain and improve Ferry vessels and facilities. Continue to improve operating standards and procedures to maintain Safety safe, reliable and efficient Ferry service. Improve farebox recovery with implementation of maintenance Efficiency management system and completion of capital projects. FY 10/11 Project Focus The following are capital projects that affect the Ferry Division and will be part of the District s workplan focus for FY 10/11. Please refer to the Ferry Division s Capital project detail for more description. Ramps & Gangways Service Life Extension Corte Madera Marsh Restoration Gangway & Piers Design Refurbish San Francisco Ferry Terminal Public Restroom Facilities Facilities Larkspur Ferry Terminal Restroom & Access Rehabilitate Larkspur Maintenance Facility Larkspur Ferry Terminal Bike Racks Larkspur Ferry Terminal Utility System Refurbishment Larkspur Ferry Terminal Security Improvements & Equipment Ferry Operations Ferry Fare Gates & Ticket System Channel & Berth Dredging Install Solid Ballast in Spaulding Vessels Rehabilitate M.V. Golden Gate Rehabilitate M.V. Napa Digital Video Security System Mid-Life Refurbishment M.V. Mendocino Replace Battery Backup System Spauldings Refurbish M.S. San Francisco Main Engine Components Spauldings 103

106 CHANGES FROM FY 09/10 ACTUAL TO FY 10/11 ADOPTED BUDGET Revenues The Ferry Division s FY 10/11 Adopted Revenues of $13.8 million consists of: $10.8 million from Fares $3.0 million from Federal, State and Local Operating Grants and Other Operating Income Ferry Division s Adopted Revenues for FY 10/11 are projected to increase by $1.1 million (9%) from the FY 09/10 Actual. Adopted FY 10/11 Ferry Transit Fare Revenues are projected to be $10.8 million which is an increase of $0.1 million (0.9%) from the FY 09/10 Actual. The Adopted Budget is based on a 5% increase in fares and a 2.1% decrease in patronage. In addition, an increase of $1 million is projected from reinstated State Transit Assistance (STA), along with a $250,000 grant for Joint Security Training, offset by a decrease of $0.1 million in Transportation Development Act (TDA) funding and a $0.1 million decrease in other operating revenue. Expenses The Ferry Division s FY 10/11 Adopted Operating Expenses total $26.4 million. The Ferry Division s FY 10/11 Adopted Budget contains a $2.0 million (8.2%) increase over the FY 09/10 Actual expenses. The components of the changes to expense are summarized in the table on the following page. 104

107 SUMMARY OF CHANGES FROM FY 09/10 ACTUAL TO FY 10/11 ADOPTED BUDGET (ALL FIGURES IN MILLIONS) Labor Re-funding of vacant positions, negotiated cost-of-living increase to salaries and an increase in the District s pension contribution $0.3 Projected increase in medical expenses and postemployment benefits (OPEB) 0.4 Increase in workers compensation 0.1 Professional Services Decrease in legal fees (0.1) Increase for a Joint Security Training Exercise (Grant funded) and consulting services 0.3 Less scheduled dry docking expense (portions to be Grant funded) (0.1) Decrease in facility maintenance cost (0.3) Supplies and Other Increase to fuel costs projected at $2.35/gallon 0.6 Increase in repair parts and maintenance supplies 0.2 Re-funding for staff development costs unused in FY 09/10 and slight increase in lease and rental fees 0.1 Decrease in miscellaneous service expense (0.1) Capital Contribution and Depreciation Increase in capital contribution 1.0 Decrease in depreciation and utilities costs (0.4) Total Change from FY 09/10 Actual to FY 10/11 Adopted Budget $

108 FERRY DIVISION OPERATING BUDGET FY 08/09 Actual FY 09/10 Budget FY 09/10 Actual FY 10/11 Adopted Budget Reve nues Transit Fares $10,066,831 $10,520,000 $10,696,981 $10,796,700 Other Operating Income 660, , , ,100 State Operating Income 2,290,810 1,537,000 1,455,135 2,325,500 Federal Operating Income 100, ,500 12, ,000 Total Revenues $13,118,488 $12,995,700 $12,697,210 $13,844,300 Percent Change -0.9% -2.3% 9.0% Expenses Salaries $8,851,371 $8,761,500 $8,308,497 $8,566,900 Fringe Benefits 5,385,341 6,222,300 5,822,686 6,297,100 Professional Services 3,055,294 2,831,900 2,630,582 2,373,300 Fuel & Related Taxes 4,187,341 4,184,500 3,536,985 4,145,500 Repair & Operating Supplies 1,133, , , ,800 Insurance, Taxes & Permits 1,772,303 1,073,600 1,023,682 1,030,800 Purchased Transportation 422 2, ,500 Staff Development 144, , , ,700 Leases & Rentals 52,894 54,900 65,016 79,600 Subtotal Expenses $24,582,780 $24,311,600 $22,294,222 $23,660,200 Capital Contribution 2,200,000 1,000,000 1,000,000 2,000,000 Depreciation 1,222,641 1,198,700 1,104, ,100 Total Expenses $28,005,421 $26,510,300 $24,398,771 $26,401,300 Percent Change -5.3% -8.0% 8.2% Revenues Over/(Under) Expenses ($14,886,933) ($13,514,600) ($11,701,561) ($12,557,000) Patronage 1,949,035 1,991,000 1,931,323 1,890,

109 Assumptions: A 1.75% salary increase for Coalition-represented and non-represented employees effective January 1, 2011, and assumes no salary increase effective March 1, 2011, for ATU represented employees pending future contract negotiations. Includes Employer MEBA, IBU and PERS contribution of %. OPEB costs are included in Fringe Benefits and reflect adoption of GASB 45 which accrues for OPEB costs based on the Annual Required Contribution (ARC) for OPEB benefits. $2.35/gallon for fuel costs for the Ferry Division. All fiscal years show the transfer of District Division expense by line item. The Ferry Division s share of the District Division transfer is $5 million. Salaries include $797,000 for casual employees for workforce relief and extra work assignments that are not included in the Ferry Division s authorized positions listing. 107

110 FERRY DIVISION PERFORMANCE MEASURES FERRY TRANSIT FAREBOX RECOVERY RATIO 50% 45% 40% STANDARD 35% 30% 25% 20% 40% 43% 39% 44% 36% 15% 10% 5% 0% FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 100% 90% Measure: Farebox Recovery Fare revenue as a percentage of operating expense. Standard: 40%, based on the Short Range Transit Plan (SRTP). FERRY TRANSIT PERCENTAGE OF TRIPS OPERATING ON-TIME STANDARD 80% 70% 60% 50% 96% 95% 89% 94% 94% 40% 30% 20% 10% 0% FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 Measure: Scheduled service times and actual service times at key time points. Standard: Operate on-schedule 95% of the time, based on the SRTP. 108

111 FERRY MECHANICAL FAILURE RATE ALL CHART NUMBERS SHOWN IN THOUSANDS STANDARD FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 Mechanical Failures Revenue Miles 184, , , , ,845 Miles/Breakdown 61,382 20,734 18,779 26,725 23,356 Measure: Miles between in-service mechanical failures. Standard: No more frequent that one per every 10,000 miles, based on the SRTP. 109

112 FERRY PASSENGERS PER REVENUE HOUR Standard FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 Time of Day AM Peak Midday PM Peak Weekend TOTAL SYSTEM Measure: Ferry passengers per service (revenue) hour. Standard: Ferry service productivity standards are at least 150 passengers per hour for peak hours and 100 for off-peak hours, based on the SRTP. Note: Some Performance Measures data for previous years has been amended due to final audit adjustments. 110

113 FERRY DIVISION CAPITAL BUDGET Program Summary The FY 10/11 Capital Budget for the Ferry Division is shown in the table on the following page. Project descriptions can be found after the table. The FY 10/11 Capital Budget for the Ferry Division totals $16.5 million and represents 25% of the total agency's capital budget. Major work and financial investment in FY 10/11 focuses on continuing projects such as design work on the Gangways and Piers project (0503), completing the refurbishment of the M.V. Golden Gate (0931) and the M.V. Napa (0932), the start of the berth and channel dredging for the Larkspur Ferry Terminal (0719 and 1023) and the purchase of an integrated fare system (0514). Previous FY 09/10 capital expenditures for the Ferry Division totaled $12.7 million, funded with $1.6 million or 13% District funds and $11.1 million or 87% in other grant funds. Details of last year s program are provided as Appendix C of this document. 111

114 FERRY DIVISION CAPITAL BUDGET FY 10/11 Total Prior FY 10/11 Future FY 10/11 Funding Project Number And Description Project Years Budget Years District Other New Projects 1111 Ramps and Gangways Service Life Extension $269,100 $- $10,000 $259, % 0% Continuing Projects 9710 Corte Madera Marsh Restoration $1,535,000 $228,700 $1,000 $1,305, % 0% 0503 Gangway & Piers - Design 7,844, ,900 1,000,000 6,257,100 7% 93% 0514 Electronic Fare System 4,000, ,700 2,000,000 1,741,300 50% 50% 0719 Berth Dredging 1,224, , ,100-20% 80% 0915 SFFT Public Restroom Refurbish 232,300 57, ,000 74,900 0% 100% 0918 LFT Restroom & Access 680, , ,500-0% 100% 0920 Spaulding Solid Ballasts 150,000 17,000 90,000 43, % 0% 0922 Repower M.V. Del Norte 6,075,000 4,587,700 1,487,300-5% 95% 0931 Purch & Rehab M.V. Golden Gate 11,705,000 5,768,500 3,000,000 2,936,500 0% 100% 0932 Purch & Rehab M.V. Napa 11,705,000 5,924,400 1,000,000 4,780,600 24% 76% 1019 Rehab Larkspur Maint. Facility 735,000-10, ,000 20% 80% 1021 Digital Video Security System 386,000 69, ,000-18% 82% 1022 LFT Bike Racks 140,000 5,800 10, ,200 0% 100% 1023 Channel Dredging 8,506, ,400 5,000,000 3,181,600 20% 80% 1025 LFT Utility System Refurb. 800, , , , % 0% 1029 Mid-Life Refurb. M.V. Mendocino 1031 Replace Battery Backup Sys - Spauldings 1,025,000 12, , ,900 20% 80% 180,000 20, ,000 59,800 20% 80% 1112 Ferry Capital Equipment 385, , % 0% Total Continuing Projects $57,307,300 $18,868,300 $15,926,900 $25,512,100 19% 81% Revised Projects 0822 LFT Security Impr. &Equip. $325,000 $88,200 $236,800 $- 0% 100% 1026 Refurb Power Distribution M.S. San Francisco 1030 Main Engine Components Spauldings 10,000,000 11, ,000 9,788,900 20% 80% 620, , ,200-20% 80% Total Revised Projects $10,945,000 $594,100 $562,000 $9,788,900 13% 87% Total Capital Expenditures $68,521,400 $19,462,400 $16,498,900 $32,560,100 19% 81% Capital Fund Source District $13,340,600 $2,528,100 $3,424,600 $7,387,900 Other 55,180,800 16,934,300 13,074,300 25,172,200 Total $68,521,400 $19,462,400 $16,498,900 $32,560,

115 Ferry Division Capital Project Detail New Projects Project 1111 Ramps and Gangways Service Life Extension This project includes a comprehensive inspection and report of critical components requiring repair, upgrade, renewal and replacement to maintain the existing passenger ramps, gangways, floats, etc. in a safe, reliable, working condition for the next several years until they are replaced or significantly upgraded. Continuing Projects Project 9710 Corte Madera Marsh Restoration In accordance with conditions of a 1988 dredging permit issued by the Corps of Engineers, this project began in FY 96/97 to provide for restoration of seasonal and tidal wetlands at the District's 72-acre parcel adjacent to the Corte Madera Ecological Reserve (CMER) to mitigate for potential impacts of ferry operations on the CMER shoreline. Project 0503 Gangway & Piers Design This project was initiated in FY 04/05. These funds will support preliminary engineering and environmental work to replace and rehabilitate the existing hydraulic gangway and ramp system installed at the San Francisco, Larkspur and Sausalito ferry terminals in the mid-1970s. Project 0514 Ferry Fare Gates & Ticket System Initiated in FY 04/05, this project will purchase an integrated fare system that will be compatible with single-ticket transactions and Clipper SM. Project 0719 Berth Dredging The Larkspur Ferry Terminal berthing area requires dredging approximately every three to four years. Pre-dredge surveys began in FY 06/07, followed by design work. Dredging activities are set to begin in FY 10/11. Project 0915 Refurbish SFFT Public Restroom Facilities In order to resolve access issues, this project was added to the FY 08/09 budget to redesign and refurbish the four (4) public restrooms at the San Francisco Ferry Terminal to comply with ADA requirements. Project 0918 LFT Restroom and Access Initiated in 2009, the project will remodel existing restrooms and access at the Larkspur Ferry Terminal to comply with ADA requirements. Project 0920 Install Solid Ballast in Spaulding Vessels This project will install ballasts in voids to bring vessels into proper trim. 113

116 Project 0922 Repower M.V. Del Norte Initiated in 2009, this project will replace main engines and other propulsion equipment. Main engines will be replaced with Tier 2 engines. Other auxiliary machinery such as generators and equipment will also be replaced. Savings will be realized due to decreased maintenance of the engines. Project 0931 and 0932 Purchase & Rehabilitate M.V. Golden Gate & M.V. Napa This project will completely refurbish the M.V. Golden Gate and the M.V. Napa which were purchased in January The refurbished ferry boats will be used to replace a 30-year old vessel that has reached the end of its useful service life. Project 1019 Rehabilitate Larkspur Maintenance Facility This project will include engineering, design and construction necessary to upgrade and improve the existing shop and first floor service spaces at the Larkspur Ferry Terminal. Project 1021 Digital Video Security System This project will install cameras and server equipment for a digital surveillance system. Project 1022 Larkspur Ferry Terminal Bike Racks This project will procure and install bike racks at the Larkspur Ferry Terminal. Project 1023 Channel Dredging This project will perform the Larkspur Ferry Terminal channel dredging, required approximately every three to four years. Project 1025 LFT Utility System Refurbishment This project will remove and replace deteriorated utility hangers and piping as well as rehabilitate water bilge and sewer lines at the Larkspur Ferry Terminal. Project 1029 Mid-Life Refurbishment M.V. Mendocino This project will include extensive dry-dock and overhaul of the 10-year old M.V. Mendocino. Project 1031 Replace Battery Backup System - Spauldings This project includes design, procurement and installation of equipment necessary to provide backup power and controls during electrical failures. Project 1112 Capital Equipment - Ferry Annual purchase of capital equipment for the Ferry Division. Revised Projects Project 0822 LFT Security Improvements and Equipment This project was revised from security improvements at the Sausalito Ferry Landing to the Larkspur Ferry Terminal. The project is to develop an Integrated Security/ Emergency Operations Center, including converting an existing space at the Larkspur Ferry Terminal to an Electronics Room to house all electronic security equipment. This 114

117 project will also include building-out both the Conference Room and the Kiosk area at the LFT with emergency operations equipment (alarm and video monitors, communications equipment, etc.) and projector/screen. Project 1026 Refurbish M.S. San Francisco This project has been expanded from a power distribution refurbishment to a total refurbishment of the M.S. San Francisco, which will include the removal of everything on the interior of the vessel as well as replacement of the main electrical switch boards, motor control center and power distribution breaker panels. Project 1030 Main Engine Components - All Spauldings This project will provide for the complete overhaul of the main engines and related equipment for all Spaulding vessels. 115

118 GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT Ferry Division Personnel Summary by Department District Staffing by Dept. The Ferry Division FY 08/09 Year-End FY 09/10 Budget FY 09/10 Year-End FY 10/11 Budget Net Change FY 09/10 to FY 10/11 Ferry Vessel Operations 410 Supervising Vessel Master Vessel Master Vessel Master Baseball Deckhand Deckhand Lead Deckhand Baseball Maintenance Deckhand Total Ferry Terminal Operations 420 Admin Assist/Crew Resources Operations Supervisor Operations Supervisor P.T Terminal Assistant Terminal Ops Superintendent Ticket Agent Ticket Agent Baseball Total Ferry Maintenance 430 Chief Mechanic (Day) Marine Superintendent Mechanic (Day) Mechanic (Grave) Mechanic (Swing) Mechanic Lead (Day) Mechanic Lead (Grave) Mechanic Lead (Swing) Marine Storekeeper Marine Projects Manager Total Ferry Procurement 440 Senior Buyer Total Legend: (a) Title Change; (b) Added Position; (c) Position Transferred; (d) Position Eliminated 116

119 GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT Ferry Division Personnel Summary by Department District Staffing by Dept. The Ferry Division FY 08/09 Year-End FY 09/10 Budget FY 09/10 Year-End FY 10/11 Budget Net Change FY 09/10 to FY 10/11 Ferry General & Admin 490 Administrative Assistant Deputy General Manager, Ferry Division Total Ferry Division Totals Total Authorized Positions Regular Positions Limited Term Positions Legend: (a) Title Change; (b) Added Position; (c) Position Transferred; (d) Position Eliminated 117

120 118

121 DISTRICT DIVISION TABLE OF CONTENTS District Division Profile District Division Organizational Charts District Division Status FY 10/11 District Division Goals and Projects Changes From FY 09/10 Actual to FY 10/11 Adopted Budget District Division Operating Budget District Division Capital Budget District Division Personnel Summary by Department

122 120

123 DISTRICT DIVISION PROFILE The District Division is comprised of a variety of administrative departments that support the four operating activities of the District: the Bridge, Bus, Ferry, and Visitor Services and Concessions. The District Division consists of the following: Office of the General Manager, Office of the District Engineer, Office of the Auditor-Controller, Office of the District Secretary, and Administration and Development Departments. The Office of the General Manager, as the Chief Executive Officer, is appointed by the Board of Directors and given authority, provided by the Board, for the operation of the District and supervises employees in the administration, operation, construction, strategic planning and research activities of the District. This office is primarily responsible for providing general management of the District s three operating Divisions (Bridge, Bus and Ferry) and District Administration. Each Division is headed by a Deputy General Manager who in turn reports to the General Manager. Visitor Services and Concessions is managed by the Director of Procurement and Retail Operations under the Auditor-Controller. The Public Affairs Department is under the direct guidance of the General Manager and is responsible for media and public relations by providing timely and accurate information regarding District programs and services to both internal and external stakeholders. The department also coordinates filming and photography permitting and license agreements. The Office of the District Engineer is responsible for the design and execution of the District s engineering and construction programs. The Office of the Auditor-Controller is responsible for the financial activities of the District and includes the functions of Accounting, Payroll, Audit, Capital and Grant Programs Administration, Budgeting, Financial Projections, Investments and Treasury functions, Insurance, Electronic Revenue Collection, Procurement, Vault, Cash Management and Retail Operations. Accounting is responsible for the financial processing activities of the District covering areas such as banking relationship, cash and investment activity, payroll and accounts payable processing, and accounts receivable billing and collection activity. The department also oversees all financial audits concerning the District, including the annual audit of the District s financial records. This department is a key contributor in financial report compliance, including the National Transit Database (NTD) Report, the State Controller s Reports and the U.S. Department of Transportation, Federal Highway Administration (FHWA) Toll Facility Receipts and Disbursement Report. Accounting establishes financial policy interpretation in the areas of internal control and compliance with generally accepted accounting principles. Capital and Grants is responsible for the development of the annual Capital Budget and the Capital Improvement Program. This Office coordinates with the 121

124 District's three operating divisions to account for capital project activities, maintain project budgets and to ensure compliance with grant reporting requirements. This Office is responsible for programming, obligating, administering and monitoring Federal, State and Local capital and operating grants for the District. Other responsibilities include coordination of the annual MTC Transportation Development Act Claim application and the facilitation of the FTA Triennial Review. This office actively participates in local and regional funding policy discussions and working groups, and serves as a liaison between granting and partner agencies for all grant funding opportunities. Budget and Program Analysis is responsible for facilitating the overall budget process, monitoring the day-to-day operating budget, creating the details of the operating budget, and creating and updating financial projections. The office supports the operating Divisions by participating in special projects, performing program analysis, creating business processes and facilitating fiscal policies. The office is also responsible for managing the operations of FasTrak, oversight of the Clipper SM program and maintaining the toll policy. Procurement and Retail Operations is responsible for the procurement activities of the entire District, shipping and receiving, warehousing, fleet management, distribution of interoffice mail, Vault services, operation of the Visitor Services and Concessions, which includes the Gift Center and Bridge Café, and other administrative tasks. The Senior Buyers and associated purchasing staff for the Bus and Ferry Divisions report to the Director of Procurement and Retail Operations, but their positions and associated expenses are identified as purchasing departments within their respective divisions. The Office of the District Secretary (DS Office) manages all activities related to the Board of Directors (Board). The Board is comprised of 19 members representing the counties of San Francisco, Marin, Sonoma, Napa, Mendocino and Del Norte. The DS Office is responsible for conducting Standing and Advisory Committee meetings, regular and special Board meetings and public hearings, including the preparation of agendas, minutes, ordinances, resolutions and all other related tasks associated with managing a Board of Directors. In 2007, the Board created the Golden Gate Bridge, Highway and Transportation District Other Postemployment Benefits (OPEB) Retirement Investment Trust Board, and the DS Office, in coordination with the Auditor-Controller s office, manages the activities of the Trust Board, including conducting meetings, preparing agenda, producing minutes and all other related tasks associated with managing a Trust Board. The DS Office is also responsible for the administration of District-wide formal bids and Requests for Proposals (RFPs), including all other miscellaneous contracts. The Office ensures that all contract documents, payment and performance bonds, and related insurance matters are compliant with bid/rfp specifications. The Office accepts and processes District-wide claims, lawsuits and subpoenas. The District Secretary serves as the Filing Officer for State-mandated requirements, including filing of financial 122

125 disclosure statements (Form 700) with the Fair Political Practices Commission for the Board, designated staff and consultants; conducting Ethics Training for the Board and designated staff every even year; and, filing the official Board of Directors Roster with the State of California. The DS Office also processes and responds to all Public Records Act requests and prepares and files Notices of Exemption for changes in Bridge tolls, transit fares and transit services. In 2009, the Receptionist position, located in the Administration Building, Golden Gate Bridge Toll Plaza, was assigned to the DS Office. This position provides customer service and support services to the DS Office staff. The offices of Administration and Development provide professional and technical staff support to the operating Divisions in the areas of Marketing, Customer Service, Information Systems, Human Resources, Organizational Development and Training, Risk Management, Health and Safety, and Planning. Additionally, the Division oversees all civil rights programs including disadvantaged and small business opportunities, Title VI (services and facilities) discrimination issues, ADA and diversity workplace issues. Marketing and Communications provides the District with an opportunity to create a unified approach in marketing its services and brand. The District spreads its message and heightens awareness through a combination of advertising, promotions, outreach (education and community), communications and enhanced public information. A focus on creating customer-friendly and easily understood information tools is the highest priority for both external and internal customers, in order to achieve brand awareness and service successes. Special efforts include bilingual materials and targeted outreach. Customer Relations provides quality information and customer service through one-on-one telephone calls, , enhanced technologies such as 511, or in person at community events or transit fairs. Information Systems is responsible for the maintenance and enhancement of most District computer systems, including hardware, software and data, as well as most of the District s data network. It is focused on supporting staff with their computer needs and on projects requested by Departments. Human Resources is responsible for providing employees with various personnel services. The Human Resources Department handles all recruitment activities and benefits programs; analyzes policies to ensure equitable enforcement throughout the District; and, provides proactive employee relations activities which create a positive, supportive and effective working environment for all employees. Risk Management/Safety ensures compliance with all applicable laws related to environmental health, workplace safety and self-insurance workers compensation programs; monitors third party administrators for workers compensation and liability claims; works with insurance brokers on obtaining insurance policies; supports and acts as a consultant on all relevant risk management and safety 123

126 matters for all Divisions, including ongoing training; and, identifies risk exposures and recommends risk control strategies as necessary. Planning provides planning and analytical support to all areas of the District including complex toll and fare studies, service plan development, facilities and property development, performance monitoring and standards review, and development and access plans for persons with disabilities, cyclists and pedestrians at the Bridge and at transit facilities throughout the Golden Gate system. Furthermore, planning assistance is provided for the District s various other capital and technology projects such as Geographic Information Systems (GIS), Intelligent Transportation Systems (ITS) and Clipper SM. 124

127 DISTRICT DIVISION ORGANIZATIONAL CHARTS ADMINISTRATION & DEVELOPMENT Deputy General Manager - Administration & Development DBE Program Employe e Relations Human Resources Planning Marketing & Communications Customer Relations Environme ntal, Health & Safety Information Systems ENGINEERING DEPARTMENT District Engineer Deputy District Engineer Technical Design Steel & Paint Inspection Civil Engineering Engineering Contracts Administration & Support 125

128 FINANCE DEPARTMENT Auditor/Controller Accounting & Payroll Budget & Programs Analysis Capital & Grants Procurement & Retail Operations Payroll Accounting Budget & Programs Financing/ Investments Electronic Revenue Programs Purchasing & Procurement Vault Reproduction Visitor Services & Concessions DISTRICT SECRETARY S OFFICE District Secretary Senior Board Analyst Assistant Clerks of the Board Receptionist 126

129 DISTRICT DIVISION STATUS Engineering Department Status The Engineering Department is responsible for developing and implementing capital improvement projects for the Bridge, Bus and Ferry Divisions as well as providing ongoing engineering support to the District s maintenance operations. The associated successes can be measured in concrete and steel installed with consideration for physical and environmental restrictions, in improved service to the public and in preservation of the District s assets through extended service life of the District s structures. Construction is proceeding on the Golden Gate Bridge Seismic Retrofit Phase IIIA, North Anchorage Housing and North Pylon. Lead remediation within the North Pylon is ongoing, while remediation within the Anchorage Housing is complete. A temporary access trestle has been installed inside the Anchorage Housing. Steel fabrication continues in Washington and false work construction continues at the precast site located in Napa, CA. The micropile pre-production testing has been completed and production micropile construction is underway. Strengthening of the exterior walls of the Anchorage Housing is complete. Shear walls have been constructed at several locations and are ongoing. A new electrical substation has been installed in the Anchorage Housing and the temporary relocation of utilities is underway. Rockbolt installation and slope strengthening has recently been completed. At the start of the FY 09/10, construction commenced on the Toll Plaza Pavement and Access Improvements Project. In the ensuing months the Employee Parking Lot, the East Parking Lot and the on- and off-ramps at the East Parking Lot have been repaved with railing, signage and lighting installed. The entrances to the Toll Plaza Administration Building have also been reconstructed to comply with current accessibility standards. On January 22, 2010, the District issued the Final Environmental Impact Report, Environmental Assessment and Section 4(f) Evaluation with a Finding of No Significant Impact for the Golden Gate Bridge Physical Suicide Deterrent System Project with the Net System as the environmentally superior alternative. On February 12, 2010, the Board of Directors approved a resolution that certified the Final Environmental Impact Report, adopted the Project and adopted the Findings of Fact, which includes a Statement of Overriding Considerations and the Mitigation Monitoring and Reporting Plan. This concluded the environmental process for the Project. Preliminary engineering for the Moveable Median Barrier Project is underway. The District has developed conceptual designs demonstrating how the moveable median barrier will safely transition and terminate (from a traffic operations perspective) on the Waldo Grade and at the south end of the Bridge. Environmental studies have commenced and are ongoing. 127

130 The District was awarded a $3 million National Science Foundation (NSF) grant in FY 09/10. The principle work is the development of permanent science-oriented outdoor exhibits which explain the original construction and information about the Bridge. This work also includes development of a master plan of what is known as the East Visitor Area to ensure that the placement of the exhibits at the Bridge site are professionally guided and to ensure that this phase follows logical steps that could later lead to the realization of a visitor center at the site. This project will also enhance the District s website to both complement the outdoor exhibits and to provide science, mathematics and engineering learning opportunities using the Bridge as the focal point. Subsequent to the grant award, the master planning has been completed, and the design of exhibits is underway. In FY 09/10, the Engineering Department successfully navigated the environmental regulatory process, working with the U.S. Army Corps of Engineers (USACE), the San Francisco Bay Conservation and Development Commission (BCDC), the San Francisco Bay Regional Water Quality Control Board, State Lands Commission and U.S. Environmental Protection Agency (EPA) to obtain approval to dredge the two-mile long navigational channel, turning basin and four (4) lay-up berths at the Larkspur Ferry Terminal. Final plans and specifications consistent with the regulatory approvals were completed and the construction contract advertised. Conceptual designs, environmental studies and engineering services for modifications and Improvements to the Larkspur, San Francisco and Sausalito Ferry Terminal Facilities have commenced. A consultant was hired and preliminary designs have been developed for all three facilities. The construction of several smaller projects have also been completed this year, including: construction of the San Rafael Data Center Project, a new building designed by staff to house computer and radio servers and an uninterrupted power supply system; and, construction of the San Rafael Body Shop Roof Replacement and Solar Panels Installation have also been completed. Staff prepared the design plans and advertised the construction contract to replace the existing San Rafael Bus Facility Wash Rack Building with a new building, a new wash rack, a new water reclamation system, the addition of a new 22-foot wide bay adjacent to existing structure for bus detailing and cleaning functions and the installation of a new 60KW roof-top solar panel system. Staff prepared design plans and bid documents to construct two new fully accessible restrooms, replace two existing concrete ramps and install automatic double sliding doors and powered swinging doors in the waiting area of the Larkspur Ferry Terminal. Construction is underway. Staff has also prepared design plans for construction of accessible restrooms at the San Francisco Ferry Terminal. Staff prepared the plans and advertised the Golden Gate Bridge South Approach and Pier Physical Security Improvements Project. This project further enhances the existing security infrastructure. 128

131 Design and construction will be proceeding on a variety of projects during FY 10/11. The majority of the Engineering Department resources will continue to be expended on Bridge retrofitting and renovation. The construction of the Golden Gate Bridge Seismic Retrofit Phase IIIA Project will continue. The design and preparation of construction bid documents for the seismic and wind retrofit of the suspension structure of the Bridge will be a significant focus. Finance Department Status The preceding fiscal year has seen considerable advancement of many projects for the Finance Department. Accounting Department The Accounting Department spearheaded a major change in the way the District conducts its finances with a complete conversion and upgrade of the banking services used by our organization. Over the past year, Accounting took this opportunity to conduct a full-scale review of the existing banking processes and services, including an in-depth review of all cash-handling practices. With the completion of this review, a Request for Proposal was issued and awarded to a new contractor. The result is a more efficient treasury reporting system along with the introduction of more electronic components into Accounting operations. Accounting also completed the RFP process to initiate a new Special Audits program. With the assistance of our new contractor, IntelliBridge, we hope to benefit from future audit recommendations in the form of improved operating efficiencies. The Payroll Department was instrumental in the successful conversion and upgrade of the Hastus payroll processing system. In particular, the payroll processing of the approximately 280 Bus Operators has progressed from a manual to an automated system. Capital and Grant Programs Department The Capital and Grant Programs Department secured over $47 million in Federal, State and local capital and operating grants to support capital projects and transit operations and has also secured $57,000 to provide Grant Administration services to partner agencies. Capital and Grants successfully completed work with the FTA to increase the Federal participation rate allowable in procuring 23-45' buses, resulting in an over $400,000 savings to the District. Additionally, Capital and Grants coordinated the FTA Triennial Review in All 23 review areas were successfully reviewed and closed out. 129

132 Budget and Program Analysis Department With Board approval in September 2009, ICMA-Retirement Corporation was selected as the sole provider of the District s 457 Deferred Compensation Plan. The Budget and Program Analysis Department has been pivotal in consolidating and improving the Deferred Compensation benefit enjoyed by District employees. Additionally, by updating our carpool toll program to mirror similar carpool tolls in the Bay Area, the Budget and Program Analysis Department will improve toll revenues and contribute to the long-term financial stability of the District. Procurement Department The Procurement Department has made great strides toward streamlining the District s procurement of services, equipment, materials and supplies. The Board of Directors adopted a restated Procurement Policy that incorporated recent changes to State law (AB 116) regarding the procurement of equipment, materials or supplies and increased the dollar threshold for procuring services using a formal competitive negotiations process. In addition, the Board of Directors authorized the General Manager to take further actions as may be necessary to give effect to the restated Procurement Policy, including updating and making subsequent revisions to the Procurement Manual. The streamlining of the procurement process allows staff to perform the procurement functions in a more efficient and timely manner and has increased overall District productivity and responsiveness. With the assistance of the Procurement Department, the District has implemented inventory and purchasing modules that will improve operations and increase efficiency and standardization. District purchase orders utilize an electronic workflow to streamline the approval process. Much of the process of requesting quotations for informal bids will become automated. The Procurement Department has overseen the training of users on the new inventory and purchasing modules, along with the creation of a user s manual. The Vault Department has been reorganized to take advantage of currency processing services offered by our current District bank contractor. This has led to a reduction in the number of Vault Officer positions necessary to complete Vault duties. Collaborative Achievements The Finance Department is the proud publisher of four Government Finance Officers Association (GFOA) Award-winning documents. The Budget Book you are now reading, along with the publications of previous years, is the result of collaboration between the Budget and Program Analysis Department and the Capital and Grants Department. The Comprehensive Annual Financial Report (CAFR) has also received a GFOA Certificate of Achievement for Excellence in Financial Reporting for the second year in a row. The CAFR is a collaborative work between the Accounting Department and the Department of Public Affairs. 130

133 District Secretary s Office Status Reorganization This past year, the DS Office experienced a major reorganization, including the addition of a Senior Board Analyst position and a Receptionist position. The Senior Board Analyst provides a higher level of technical support to the management of the departmental work and allows the District Secretary to focus on managing the various high-level activities related to supporting a 19 member Board of Directors. In addition to Board-related work, the position allows the District Secretary to address deadlines and compliance driven activities in the areas of Public Records Act Requests, contract administration, as well as to move forward key projects in a timely manner, such as the District-wide Records Retention Program. The Receptionist position provides customer service to the public as well as valuable support to the DS Office Staff to ensure that critical work is effectively and efficiently completed in a timely manner. Going Green Efforts In an effort to join the forces in reducing waste, the DS Office is continuing to reduce the consumption of paper by electronically sending the majority of all paperwork associated with Board, contract administration, legal and State compliance work. Records Retention Program The development of a District-wide Retention Program is well underway and should be completed by the end of This has been a major collaborative effort with the various Divisions/Departments and the Attorney s Office. Once this program is approved by the Board of Directors, its implementation will streamline the District-wide record keeping process by reducing reliance upon existing storage space and by improving the accessibility of District records. Administration & Development Status Legislative Status Lead by the Deputy General Manager of Administration & Development, the District conducted a successful State House lobby day, which was reserved for the District only. These efforts substantially raised the awareness of District capital and operating needs and activities. Diverse coordination with our State legislative delegation, the California Transit Association, the American Public Transportation Association and statewide transit agencies assisted the District s positioning for State and Federal funding as well as analysis and crafting of vital pieces of legislation. 131

134 Marketing & Communications Department In the interest of sending better informed Bus Drivers out into the field, Marketing oversaw the installation of a series of networked monitors in the Bus Driver rooms and throughout the San Rafael Administration building. These monitors provide up-to-theminute information on traffic and road conditions, emergencies, events, activities and employee bulletins. For a few years now, District employees have enjoyed the convenience of our company intranet (hr.goldengate.org). Marketing and Communications have greatly expanded this intranet with the inclusion of all Memoranda of Understanding and the Bus Operator Runbooks. Employees now have the opportunity to display the company logo on their work apparel. Marketing and Communications has worked with a third party provider to develop affordable clothing and accessories decorated with the District brand. A simply structured page accessible through the company intranet allows employees to easily customize selected apparel with information, such as their name or department. The District has been one of the region s earliest adopters of the TransLink /Clipper SM system, a pre-paid fare network that will allow customers to make payment and access public transportation throughout the Bay Area. Marketing and Communications staff has been working with our regional partners to emphasize the exclusive use of the TransLink /Clipper SM card. By July 31, 2010, Clipper SM will be the only means of obtaining a frequent rider discount. Customer Service Department Customer Service, in conjunction with Marketing and Communications, has implemented a customer subscription service. Customers who choose to subscribe will regularly receive detailed information about service changes and emergency alerts via or text services. Customers are given the tools to fully customize the level of detail and the types of alerts that they wish to receive. Information Systems Department A great deal of the functionality of the District depends upon our Information Systems (IS) infrastructure. To this end, the IS Department has completed a major network upgrade which has provided improved bandwidth and information recovery capabilities. This past year has also seen significant activity in the area of our financial and payroll processing systems. IS has been integral to the preparation for the new Maximo financial system, which will handle the processing of District procurement requests. Upgrades have also been completed for the Hastus Payroll system. Of particular note is the automation of complex Bus Operator payroll rules which allows a direct interface between Hastus Dispatch and our payroll system. The result is a dramatic decrease in manual data entry and an improvement in the overall accuracy of our payroll processing. 132

135 IS, in conjunction with Engineering, completed the design and awarded the construction of the District s second data center. This new data center provides needed data redundancy and recovery. Substantial development of the technical design of a new radio and AVL system was also accomplished. Human Resources Department With the completion of RFP-D1, Deferred Compensation Plan Provider, Human Resources has implemented a streamlined, cost-effective Deferred Compensation program. All District employees and participating retirees will receive enhanced program features such as improved investment options, referral to financial planning services and dedicated plan information resources for employee access to plan details. Human Resources provided District-wide specific employee development and skills training for individual and team responsibilities. Twelve programs have been presented, including mandatory compliance training, career development and team development. Additionally, the Employee Relations Office delivered numerous Equal Employment Opportunity and Sexual Harassment training classes, conducted interventions and consulted with mid-level and senior management on the handling of grievances, conflict resolution, union negotiations and sensitive investigations. A new Employee Handbook has been completed and distributed to employees in hardcopy form and via the company intranet. This project provides needed information to management and employees on the District-based workplace environment including policies, facilities, management team and Division/Department units. In addition, employees will also find local references for accessing services such as banks, restaurants and employee discount programs. Human Resources has also revised and improved District recruitment procedures and processes for greater efficiency. Along with successfully passing local environmental audits for Bridge and Transit, the Risk Management/Safety Department has secured the District s first three-year pollution liability policy. The District has now secured an excess liability policy with $2 million retention and defense costs within set limits. This has been achieved without any substantial price increase. Risk Management/Safety has also developed an RFP for Third Party Administrator Liability claims. Many improvements have come to the Workers Compensation portion of Risk Management/Safety. A District-wide Medical Provider Network has been implemented to keep Workers Compensation medical costs under control. Also, in conjunction with Human Resources, Fitness for Duty examination policies and procedures have been developed. The Disadvantaged Business Enterprise (DBE) Coordinator made revisions to the District DBE Program goals to bring it in compliance with recent changes in State regulations, 133

136 overseen by Caltrans and gained acceptance by the Federal Transit Administration of our mandated Federal DBE goals and program. Planning Department The Planning Department has greatly improved the accuracy and standardization of Bridge Toll and Transit Fare statistics and ridership trends. A shared and accessible portion of our network is now dedicated to presenting monthly TranStat statistics to the Board and staff to assure data consistency. A proposal has been developed to adjust underproductive transbay Bus services. By continued analysis of Bus and Ferry routes and schedules, the Planning Department seeks to improve Transit productivity and reduce the District s operating deficit. The Planning Department has also closely monitored the development and acquisition of a permanent bus storage facility in downtown San Francisco. 134

137 FY 10/11 DISTRICT DIVISION GOALS AND PROJECTS District Division Goals Project Management Provide Project Management for engineering, technology, planning and special ongoing activities. Support implementation of special projects. Support Operating Divisions with administrative and employee support for internal agency functions in areas of Human Administration Resources, Legal, Planning, Marketing, Information Systems, Finance, Grants, Accounting, Budgeting, Employee Relations, District-wide Training and the Board of Directors. Purchase materials and supplies. Execute and administer contracts and RFPs to potential vendors and ensure fair and Logistics competitive price procurement. Plan and execute special events, Board meetings, and public education meetings. Compliance Communication/ Outreach Efficiency Ensure that the District is compliant with Federal, State and local requirements and standards concerning insurance, Workers Compensation, grants, environmental regulations, occupational health and safety regulations, financial auditing, Public Records Act requests, ethics training and Conflict of Interest reporting. Provide public with various forms of communication through the website, written materials, customer service staff and public requests. Provide employees with communication on internal agency issues and activities. Continue to improve internal processes and operations to promote effective and efficient service to the Operating Divisions, the Board of Directors and the public. 135

138 District Division Project Focus The following are projects that will support the District Division, the Operating Divisions or are Agency-wide projects and will be the District s workplan focus for FY 10/11. For the projects that are not part of the District Division s capital plan, a project description is provided. District-Wide Telephone Switch Replacement/Upgrade: See Capital Section for more description. Electronic Records Management System: The system will allow departments to store, index, search and retrieve documents electronically. This method of document storage frees up valuable physical storage space and simplifies the process of adhering to a records retention program. Internal Communications: Marketing and Communications will implement an employee-only emergency alert function, which will immediately provide employees with details and information about emergency work-related situations via personal or text message. Efficiency Through Technology Asset Vehicle Fluid Management: See Capital Section for more description. Data Center Disaster Recovery: See Capital Section for more description. Wi-Fi Implementation: Marketing and Communications is evaluating the feasibility of allowing a third party provider to install Wi-Fi access capabilities on buses and ferries, as well as digital signage onboard ferries. Automated Customer Information System: Customer Service will begin evaluating alternatives to provide further reliance on technology to provide enhanced automated information capabilities to transit customers. Financial & Maintenance Management System: The old procurement and inventory system, Spear, is being replaced by Maximo. 136

139 Transit Connectivity: Passenger and way-finding signage for Bus and Ferry Operations are being improved. TransLink Brand Transition: Staff are working with regional partners to rebrand TransLink to Clipper SM. Rebranding will include education and outreach as well as working with regional partners to facilitate TransLink card exchange. Improve Customer Service Code of Conduct: A communication program will fully launch to ensure appropriate behavior for Bus and Ferry passengers. A special component has been developed for middle and highschool students who use our service. Social Media: A communication program will fully launch to integrate social media marketing efforts into the District s customer communication profile. The District will leverage social media sites such as Twitter and Facebook to convey service information and to build brand awareness to current and potential customers. Engineering Project Support: Engineering will continue to lead many of the capital projects for the Operating Divisions that need technical and implementation support such as the Seismic Retrofit, main cable restoration, toll plaza pavement and access improvements, the moveable median barrier for the Bridge Division and gangways and piers for the Ferry Division. Human Resources Initiatives: In a continuing effort to improve individual and staff efficiency, Human Resources provides District-wide employee development and skill training. Training programs include career development, manager training and anti-harassment, to name a few. Improve Internal Efficiency Go Green Initiative: Staff are working to gain District-wide awareness, review processes and investigate if there are ways to be more green such as printing fewer hard copies, more efficient lighting and the use of alternative fuel sources. District-Wide Retention Program: The District Secretary s Office plans to complete a paper and electronic retention program in the Summer of

140 CHANGES FROM FY 09/10 ACTUAL TO FY 10/11 ADOPTED BUDGET Revenues The District Division does not have its own revenues. Any revenues associated with District staff activities are credited directly to operating divisions. Expenses The District Division s FY 10/11 Adopted Operating Expenses total $24.7 million. The District Division s FY 10/11 Adopted Budget contains an increase of $1.7 million (7.5%) above FY 09/10 Actual expenses. The components of the changes to expense are summarized in the table on the following page. 138

141 SUMMARY OF CHANGES FROM FY 09/10 ACTUAL TO FY 10/11 ADOPTED BUDGET (ALL FIGURES IN MILLIONS) Labor* Increase to salaries and payroll fringes due to re-funding of vacant positions, negotiated cost-of-living increase and an increase in PERS costs $0.8 Increase in medical costs 0.3 Increase in postemployment benefits (OPEB) 0.3 Professional Services Re-funding of professional service activities unused in FY 09/ Increase in legal fees and litigation costs 0.2 Decrease in miscellaneous services due to less anticipated temporary help for FY 10/11 (0.3) Decrease in facility maintenance cost (0.1) Supplies and Other Re-funding for training and staff development costs unused in FY 09/ Total Change from FY 09/10 Actual to FY 10/11 Adopted Budget $1.7 * Labor: The FY 10/11 Adopted Budget assumes $4.9 million (versus $3.9 million for FY 09/10) of indirect labor and fringe benefits that will be capitalized and transferred from Operating to Capital Expenses related to the District s central service cost allocation plan and corresponding indirect cost rate. This is anticipated to result in a $1 million decrease in labor and fringe benefits from FY 09/10 Actual expenses. Offsetting this decrease is an increase of approximately $2.4 million comprised of $1.2 million in salaries, $0.4 million in corresponding fringe benefits, $0.2 million in pension costs and $0.6 million in medical expenses. This increase reflects the re-funding of vacant positions for FY 10/

142 DISTRICT DIVISION OPERATING BUDGET FY 08/09 Actual FY 09/10 Budget FY 09/10 Actual FY 10/11 Adopted Budget Expenses Salaries $10,770,268 $11,016,800 $8,861,421 $9,910,400 Fringe Benefits 6,498,579 7,421,300 6,258,798 6,519,700 Professional Services 5,313,159 6,474,100 6,051,642 6,159,200 Fuel & Related Taxes Repair & Operating Supplies 1,006, , , ,700 Insurance, Taxes & Permits (467,089) 11,200 5,419 7,500 Staff Development 552, , , ,300 Leases & Rentals 44, ,900 92, ,800 Subtotal Expenses $23,718,452 $26,562,300 $22,516,340 $24,231,600 Depreciation 616, , , ,600 Total Expenses $24,334,511 $26,943,800 $22,941,120 $24,656,200 Percent Change 10.7% -14.9% 7.5% District Transfers Bridge Division $9,323,833 $10,854,500 $9,285,706 $9,090,600 Bus Division 9,119,320 9,990,200 8,437,603 10,026,500 Ferry Division 5,339,840 5,498,900 4,718,853 4,997,600 Visitor Services & Concessions 551, , , ,500 Total Transfers $24,334,511 $26,943,800 $22,941,120 $24,656,

143 Assumptions: A 1.75% salary increase for Coalition-represented and non-represented employees effective January 1, 2011, and assumes no salary increase effective March 1, 2011, for ATU represented employees pending future contract negotiations. Includes Employer PERS contribution of %. OPEB costs are included in Fringe Benefits. All years reflect adoption of GASB 45 which accrues for OPEB costs based on the Annual Required Contribution (ARC) for OPEB benefits. All fiscal years show the transfer of District Division expense by line item. 141

144 DISTRICT DIVISION CAPITAL BUDGET Program Summary The FY 10/11 Capital Budget for the District Division is shown in the table below. Project descriptions can be found on the following page. The FY 10/11 Capital Budget for the District Division totals $1.8 million and represents 3% of the total agency's capital budget. Major work and financial investment in FY 10/11 focuses on continuing technology projects such as the Asset Vehicle and Fluid Management System (0118) and the Telephone Switch Replacement/Auto Attendant/Symposium Upgrade (0925). Previous FY 09/10 capital expenditures for the District Division totaled $1.7 million funded with $0.3 million, or 19% District funds, and $1.4 million, or 81% Other (grant) funds. Details of last year s program are provided as Appendix C of this document. DISTRICT DIVISION CAPITAL BUDGET FY 10/11 Total Prior FY 10/11 Future FY 10/11 Funding Project Number And Description Project Years Budget Years District Other New Projects 1113 New Roof on Admin Building at Bridge $400,000 $- $50,000 $350,000 20% 80% 1114 Data Center Disaster Recovery 119,300-5, , % 0% 1115 Electronic Records Management System 330,000-50, , % 0% Total New Projects $849,300 $- $105,000 $744,300 Continuing Projects 0117 Financial & Maint. Mgmt System $2,980,000 $2,786,300 $18,700 $175,000 45% 55% 0118 Asset & Vehicle Fluid Mgmt System 5,195,000 3,794,100 1,294, ,500 0% 100% 1116 Computer/Communications Equip. 37,200-37, % 0% 1117 District Capital Equipment 207, , % 0% Total Continuing Projects $8,419,200 $6,580,400 $1,557,300 $281,500 19% 81% Revised Projects 0925 Telephone Switch Replacement/Auto Attendant/Symposium Upgrade $500,000 $224,100 $175, , % 0% Total Capital Expenditures $9,768,500 $6,804,500 $1,837,300 $1,126,700 27% 73% Capital Fund Source District $2,623,900 $1,486,700 $492,700 $644,600 Other 7,144,600 5,317,800 1,344, ,100 Total $9,768,500 $6,804,500 $1,837,300 $1,126,

145 District Division Capital Project Detail New Projects Project 1113 New Roof on Administration Building at Bridge This project will replace the roof on the Administration Building located at the Golden Gate Bridge Toll Plaza. Project 1114 Data Center Disaster Recover: Improve Data Currency This project will improve data currency and redundancy of District data in the event of the loss of one of our two Data Centers. Project 1115 Electronic Records Management System The Electronic Records Management (ERM) System will provide the capability to store, index, search and retrieve documents in a computer database, eliminating the need to manually maintain references to documents stored away in paper boxes. Continuing Projects Project 0117 Financial & Maintenance Management System This project began in FY 00/01 to replace the financial management system, which went live in Remaining funds will support the addition of new modules for the IFAS system. Project 0118 Asset Vehicle Fluid Management System (AVFMS) This project was separated from Project 0117, Financial & Maintenance Management System in FY 07/08 and will automate much of the tracking and recording of maintenance operations for revenue vehicles and vessels, District non-revenue vehicles and facilities, and major repair projects. The system will be capable of managing parts inventory, including fluids, consumables, parts and tires. Project 1116 Computer/Communications Equipment Annual purchase of computer equipment for the agency. Project 1117 Capital Equipment - District Annual purchase of capital equipment for the District Division. Revised Projects Project 0925 District Telephone Switch/Auto Attendant/Symposium Upgrade Initiated in FY 08/09, this project now includes the replacement and upgrade of the District's telephone switches, the implementation of the Auto Attendant system, and the Symposium system upgrade. This project was reduced from $1.2 million to $500,

146 GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT District Division Personnel Summary by Department District Staffing by Dept. The District Division FY 08/09 Year-End FY 09/10 Budget FY 09/10 Year-End FY 10/11 Budget Net Change FY 09/10 to FY 10/11 Admin & Development 101 HR Analyst Admin. & Dev DBE Program Administrator Deputy General Mgr., Administration Employee Relations & Diversity Program Admin Administrative Assistant Total Customer Relations 102 Customer Relations Supervisor Customer Service Rep Customer Relations Assistant Total Health & Safety 103 Director of Risk Mgt & Safety Env. Health & Safety Specialist Workers Comp Specialist Workers Comp/Liability Claims Administrator Total Human Resources 104 Administrative Assistant Benefits Administrator Human Resources Analyst HRIS/FMIS HR Analyst Human Resources Coordinator Human Resources Director HR Management Analyst Mgr of Org Development Office Specialist Office Specialist P.T HR Analyst Admin. & Dev Total Legend: (a) Title Change; (b) Added Position; (c) Position Transferred; (d) Position Eliminated 144

147 GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT District Division Personnel Summary by Department District Staffing by Dept. The District Division FY 08/09 Year-End FY 09/10 Budget FY 09/10 Year-End FY 10/11 Budget Net Change FY 09/10 to FY 10/11 Information Systems 105 Data Architect Director of Information Systems Help Desk Information Systems Intern Information Systms Project Mgr Manager of Technical Services Senior Network Administrator Senior Systems Administrator Sr Specialist for App Support Software Engineer Systems Administrator, PC Support Unix Systems Administrator (1)/(d) Total (1) Marketing & Communications 106 Art Supervisor Marketing and Comm Director Marketing Coordinator Marketing Representative Marketing Comm Specialist Total Planning 107 Administrative Assistant Associate Planner Director of Planning Access & Compliance Planner Principal Planner Property Development & Management Specialist Senior Planner Business Implmtn Project Mgr Comm Systems Project Mgr Total Legend: (a) Title Change; (b) Added Position; (c) Position Transferred; (d) Position Eliminated 145

148 GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT District Division Personnel Summary by Department District Staffing by Dept. The District Division FY 08/09 Year-End FY 09/10 Budget FY 09/10 Year-End FY 10/11 Budget Net Change FY 09/10 to FY 10/11 District Secretary 111 Assistant Clerk of the Board Office Specialist Secretary of District Senior Board Analyst Total Engineering 120 Engineering Office Manager Associate Civil Engineer Associate Paint Inspector Associate Steel Inspector (LT) Bridge Engineering Technician (LT) Deputy District Engineer District Engineer Engineering Contracts Admin Engineering Design Technician (1)/(d) Senior Engineering Design Tech Office Coordinator (LT) Office Specialist Office Specialist Engineering Senior Civil Engineer Senior Engineer Senior Mechanical Engineer Senior Steel Inspector (LT) Supervising Civil Engineer (LT) Administrative Receptionist Total (1) Finance 130 Administrative Assistant Auditor-Controller Total Legend: (a) Title Change; (b) Added Position; (c) Position Transferred; (d) Position Eliminated 146

149 GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT District Division Personnel Summary by Department District Staffing by Dept. The District Division FY 08/09 Year-End FY 09/10 Budget FY 09/10 Year-End FY 10/11 Budget Net Change FY 09/10 to FY 10/11 Accounting 131 Accountant Director of Accounting Accounting Specialist Supervising Accountant Acct. Analyst Capital & Grants Total Budget & Analysis 133 Budget & Programs Analyst /(b) Financial Management Analyst (1)/(d) Director of Budget & Programs Analysis Electronic Revenue Collection Mgr Financial Mgt & Business Process Mgr Total Capital & Grants 134 Capital Analyst Capital & Grants Programs Analyst Director of Capital & Grants Programs Principal Capital & Grants Analyst Total Payroll 136 Payroll Administrator Assistant Payroll Administrator Payroll Timekeeping Specialist Total Legend: (a) Title Change; (b) Added Position; (c) Position Transferred; (d) Position Eliminated 2 Capital Analyst position reclassified to Acct. Analyst Capital & Grants and transferred to Dept

150 GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT District Division Personnel Summary by Department District Staffing by Dept. The District Division FY 08/09 Year-End FY 09/10 Budget FY 09/10 Year-End FY 10/11 Budget Net Change FY 09/10 to FY 10/11 Procurement & Retail Operations 137 Buyer Lead Storekeeper Office Specialist Purchasing Officer Senior Buyer Storekeeper Administrative Assistant Administrative Receptionist Contracts Officer Procurement Analyst Reproduction Assistant Procurement & Retail Ops Director Reproduction Supervisor Total Vault 138 Assistant Vault Supervisor (1)/(d) Vault Officer (1)/(d) Vault Supervisor Total (2) General Manager 140 Administrative Assistant Archive Program Specialist Executive Assistant to the GM General Manager Total Public Affairs Department 141 Public Affairs Director Total District Division Totals Total Authorized Positions (4) Regular Positions (4) Limited Term Positions Legend: (a) Title Change; (b) Added Position; (c) Position Transferred; (d) Position Eliminated 148

151 VISITOR SERVICES & CONCESSIONS TABLE OF CONTENTS Visitor Services and Concessions Profile FY 10/11 Visitor Services and Concessions Goals Changes From FY 09/10 Actual to FY 10/11 Adopted Budget Visitor Services and Concessions Operating Budget Visitor Services & Concessions Performance Statistic Visitor Services & Concessions Personnel Summary by Department

152 150

153 VISITOR SERVICES AND CONCESSIONS PROFILE Visitor Services and Concessions is responsible for the operation of the Gift Center and Café located at the Bridge. This operation is supervised under the Procurement and Retail Operations Director who reports to the Auditor-Controller. Located at the south end of the Bridge, the Gift Center and Bridge Café offer food, gift items and souvenirs, and online sales through the District s web page. The District s Gift Center is located in the historic Roundhouse building just across from the Administration Building and the Toll Plaza. The Roundhouse was initially designed to serve as a roadside restaurant for Bridge travelers and visitors. By 1987, the Roundhouse was converted to the Gift Center and remains a popular destination for tourists and visitors seeking mementos of their visit to the Golden Gate Bridge. Just down the hill from the Gift Center, the Bridge Café provides food and refreshments to thousands of travelers and visitors every year. 151

154 FY 10/11 VISITOR SERVICES AND CONCESSIONS GOALS Efficiency Use new products to increase revenues in the Gift Center and Café. Marketing Attract Bay Area residents to visit the Gift Center and Café. 152

155 CHANGES FROM FY 09/10 ACTUAL TO FY 10/11 ADOPTED BUDGET Revenues The Visitor Services and Concessions Adopted Revenues of $3 million for FY 10/11 are projected to decrease slightly from FY 09/10 Actual primarily due to lower projected sales from tourism. Expenses The Visitor Services and Concessions FY 10/11 Adopted Budget of $3 million is an increase of $122,300 (4.3%) from the previous year. This increase is comprised primarily of a $17,300 increase in medical benefits, an increase of $12,900 in postemployment benefits (OPEB), an increase of $32,700 in workers compensation and an increase of $54,700 in services and supplies. It is projected that revenues will exceed expenses by $46,300 after covering $541,500 in District allocated overhead expenses. The Gift Center and Café resources reduce the use of patron fees to fund general administration activities of the District and Board of Directors. 153

156 VISITOR SERVICES AND CONCESSIONS OPERATING BUDGET FY 08/09 Actual FY 09/10 Budge t FY 09/10 Actual FY 10/11 Adopted Budget Revenues Concessions $3,169,606 $3,200,000 $3,104,953 $3,000,000 Total Revenues $3,169,606 $3,200,000 $3,104,953 $3,000,000 Percent Change 1.0% -3.0% -3.4% Expenses Salaries $679,668 $724,400 $669,260 $682,500 Fringe Benefits 558, , , ,500 Professional Services 214, , , ,600 Repair & Operating Supplies 1,278,853 1,314,700 1,291,285 1,320,100 Insurance, Taxes & Permits (4,923) 31,300 41,033 33,800 Staff Development 14,576 17,600 11,059 16,000 Leases & Rentals 1,121 3,100 2,329 3,200 Subtotal Expenses $2,742,245 $2,898,200 $2,750,950 $2,872,700 Depreciation 86,016 79,500 80,474 81,000 Total Expenses $2,828,261 $2,977,700 $2,831,424 $2,953,700 Percent Change 5.3% -4.9% 4.3% Revenues Over/(Under) Expenses $341,345 $222,300 $273,529 $46,300 Assumptions: Salary increase of 1.75% beginning January 1, 2011, for Represented and Non- Represented employees as agreed upon in the latest labor negotiations. Includes Employer PERS contribution of %. OPEB costs are included in Fringe Benefits and reflect adoption of GASB 45 which accrues for OPEB costs based on the Annual Required Contribution (ARC) for OPEB benefits. All fiscal years show the transfer of District Division expense by line item. Visitor Services and Concessions share of District Division transfer is $541,

157 VISITOR SERVICES & CONCESSIONS PERFORMANCE STATISTICS VISITOR SERVICES NET OPERATING INCOME PERCENTAGE 20% 18% STANDARD 16% 14% 12% 10% 8% 18% 17% 6% 4% 11% 11% 9% 2% 0% FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 Measure: Visitor Services net operating income percentage. Standard: 18% net operating income. Note: Some Performance Statistics data for previous years have been amended due to final audit adjustments. 155

158 GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT Visitor Services & Concessions Personnel Summary by Department District Staffing by Dept. Visitor Services & Concessions FY 08/09 Year-End FY 09/10 Budget FY 09/10 Year-End FY 10/11 Budget Net Change FY 09/10 to FY 10/11 Bridge Gift Center 610 Sales Associate Sales Supervisor Stock Clerk Total Bridge Concessions 620 Sales Associate Sales Supervisor Total Visitor Services & Concessions Totals Total Authorized Positions Regular Positions Limited Term Positions Legend: (a) Title Change; (b) Added Position; (c) Position Transferred; (d) Position Eliminated 156

159 GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT RESTRICTED RESERVES FY 10/11 BUDGET Estimated Estimated Estimated Balance Balance Balance Reserve Name 07/01/10 06/30/11 07/01/11 Unrestricted Net Assets 1 [A] $ 138,100,000 $ 139,600,000 $ 139,600,000 Board Designated and Other Reserve Adjustments Operating Reserve 2 $12,800,000 $5,800,000 $12,800,000 Emergency Reserve 3 6,000,000 6,000,000 $6,000,000 Bridge Self Insurance Loss Reserve 5,500,000 6,800,000 6,800,000 Subtotal Board Designated and Other Reserves [B] $24,300,000 $18,600,000 $25,600,000 Total Remaining Reserves Available for Capital Projects or Operations [A]-[B] $113,800,000 $121,000,000 $114,000,000 Capital Reserves Capital Plan Reserve 4 $111,500,000 $118,600,000 $111,700,000 Committed Capital Projects (District-funded portion only) Bridge $24,100,000 $18,700,000 $89,900,000 Transit 17,600,000 13,000,000 28,200,000 Total Committed Capital Projects (District-funded portion only) $41,700,000 $31,700,000 $118,100,000 Reserves Remaining for Capital Projects or Operations $72,100,000 $89,300,000 ($4,100,000) Other Reserves Legally Required Reserves Operating Reserve Fund for Bridge Expenses 7,300,000 7,300,000 7,300,000 Debt Service Reserve Fund 5,500,000 5,500,000 5,500,000 Total [C] $12,800,000 $12,800,000 $12,800,000 Fully Funded Liabilities INFORMATIONAL ONLY Self Insurance Reserve $30,800,000 $30,800,000 $30,800,000 Accrued Compensated Liabilities 8,100,000 8,100,000 8,100,000 Total [D] $38,900,000 $38,900,000 $38,900,000 Total Other Reserves [C]+[D] $51,700,000 $51,700,000 $51,700,000 Total Resources [A]+[C]+[D] $189,800,000 $191,300,000 $191,300, Unrestricted Net Assets is adjusted to exclude Capital Contributions and Bridge Self Insurance set-asides. 2. Board policy funds the operating reserve at 7.5% of the budget or to cover the expected operating deficit, whichever is larger. 3. Board policy funds the emergency reserve at 3.5% of the operating budget to enable the amount kept in reserve for emergencies to remain relative to the size of District's operations. 4. Capital Plan Reserve is established each year at 98% of Total Remaining Reserves Available for Capital Projects. 157

160 GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT CHANGES IN FUND BALANCE/EQUITY FY 07/08 FY 08/09 FY 09/10 FY 10/11 Actual Actual Unaudited Budget OPERATING REVENUES Bridge Tolls $85,416 $97,121 $100,569 $101,900 Transit Fares 21,453 21,871 22,237 21,700 Marin Transit 13,898 14,790 15,343 13,970 Visitor Services & Concessions 3,268 3,142 3,105 3,000 Other Operating (Excluding RM2 Funding) 2,287 2,811 2,766 1,873 Total Operating Revenues $126,322 $139,735 $144,020 $142,443 OPERATING EXPENSES Operations $75,150 $76,503 $76,600 $79,543 Maintenance 30,991 31,396 33,200 34,475 General & Administrative 30,633 34,006 35,100 36,448 Depreciation (Includes Grant Depreciation) 17,647 18,690 24,840 21,486 Total Operating Expenses (Excludes Capital Contribution) $154,421 $160,595 $169,740 $171,952 OPERATING LOSS $(28,099) $(20,860) $(25,720) $(29,509) NON-OPERATING REVENUES (EXPENSES) Operating Assistance - State Operating Assistance $16,234 $13,587 $9,941 $13,891 - Federal Operating Assistance Local Operating Assistance (RM2) 3,018 2,935 2,493 2,493 Total Operating Assistance $19,734 $16,925 $12,484 $16,686 Investment Income $8,868 $8,774 $5,634 $4,400 Interest Expense (1,726) (751) (179) (1,470) Gain (Loss) on Disposal of Capital Assets (1) Construction Lawsuit Settlement 3, Total Non-Operating Revenues $30,283 $25,044 $17,939 $19,616 INCOME BEFORE CAPITAL CONTRIBUTIONS $2,184 $4,184 $(7,781) $(9,893) CAPITAL CONTRIBUTIONS (Non-District Funded) 13,536 28,287 50,744 56,161 INCREASE IN NET ASSETS BEFORE SPECIAL ITEM $15,720 $32,471 $42,963 $46,268 SPECIAL ITEM GASB 49 (14,850) NET INCREASE IN NET ASSETS $870 $32,471 $42,963 $46,268 NET ASSETS, Beginning of Year 532,058 $532,928 $565,399 $608,362 NET ASSETS, End of Year $532,928 $565,399 $608,362 $654,

161 COMMERCIAL PAPER BUDGETING COVENANT CERTIFICATE OF THE DISTRICT As was true in every budget since the Commercial Paper Program began in 2001, the FY 10/11 Adopted Budget meets the pledge made to the holders of the District s commercial paper notes to insure that it is able to pay debt service on those notes. The District's pledge to debt holders includes a covenant that requires the District to pass a budget that produces sufficient revenues to pay twice as much debt service as projected. The covenant allows the District to count the $7.3 million in Bridge Operating Reserve Fund toward the 2X ratio. In addition to the Bridge Operating Reserve Fund, the District created and fully funded a Debt Service Reserve Fund of $5.5 million to further insure the security of the note holders by providing sufficient reserves to meet unforeseen eventualities. Those reserve funds have been, and will remain, fully funded throughout the Commercial Paper Program. GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT COMMERCIAL PAPER DEBT PAYMENT COVERAGE COVENANT ($ IN THOUSANDS) 06/07 07/08 08/09 09/10 10/11 Actual Actual Actual Actual Adopted Total Revenues $154,054 $154,924 $165,434 $162,139 $163,529 Less Total Operating Expenses (Less Depreciation, Capital Contribution, Bridge Self-Insurance and Debt Service Payments) ($121,037) ($136,774) ($141,905) ($142,762) ($147,697) TOTAL Net Revenues $33,017 $18,150 $23,529 $19,377 $15,832 Plus Operating Reserve Fund $7,320 $7,320 $7,320 $7,320 $7,320 TOTAL Net Revenues + Operating Reserve $40,337 $25,470 $30,849 $26,697 $23,152 Actual/Estimated Debt Service $2,162 $1,726 $751 $179 $1,470 Coverage (with Operating Reserve) Coverage (without Operating Reserve)

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163 Program Summary PREVIOUS YEAR FY 09/10 CAPITAL PROGRAM ACCOMPLISHMENTS The FY 09/10 capital expenditures for the agency totaled $58.7 million, funded with $8.0 million or 13.6% District funds and $50.7 or 86.4% Other (grant) funds. Total FY 09/10 expenditures include expenditures on completed projects and multi-year projects that will be carried over to be completed in FY 10/11 or future years. A summary of last year s program is provided below, followed by each division's detailed program. PREVIOUS FY 09/10 CAPITAL EXPENDITURES BY DIVISION Total Project FY 09/10 Budget FY 09/10 Actual Actual/ Budget Bridge Seismic Retrofit $162,957,100 $28,200,500 $17,144, % Bridge Other 81,195,100 7,368,900 4,332, % Bus 58,741,000 24,923,700 22,759, % Ferry 81,177,500 22,889,400 12,746, % District 9,738,600 2,896,500 1,732, % Agency Total $393,809,300 $86,279,000 $58,715, % Capital Fund Source Total Project FY 09/10 Budget FY 09/10 Actual FY 09/10 Funding District $93,802,600 $11,819,700 $7,971, % Federal 257,029,900 62,956,900 42,617, % State/Other 42,976,800 11,502,400 8,126, % Total Expenditures $393,809,300 $86,279,000 $58,715, % 161

164 PREVIOUS YEAR FY 09/10 CAPITAL PROGRAM ACCOMPLISHMENTS BRIDGE DIVISION Capital expenditures for the Bridge Division during the previous FY 09/10 totaled $21.5 million, funded with $4.0 million or 18.5% District funds and $17.5 million or 81.5% Other (grant) funds. Project Number & Description Total Project FY 09/10 Budget FY 09/10 Actual Actual/ Budget Bridge Division Seismic Retrofit 9102 Seismic Phase III Design $40,725,900 $3,000,500 $1,614, % 9206 Seismic Phase IIIA N. Anch. 119,231,200 25,000,000 15,410, % 0823 Beam Span Repair 3,000, , , % Total Bridge Seismic Retrofit 162,957,100 28,200,500 17,144, % Bridge Division Other 9826 Main Cable Restoration $35,000,600 $50,000 $ % 0610 Suicide Det. Prelim Invest. 2,000,000 50,000 42, % 0804 TP Pavement & Access Improv. 2,208,000 1,955,800 1,944, % 0805 So. Approach & Pier Security 5,000, , , % 0820 Moveable Median Barrier 25,000,000 2,283, , % 0901 TP East Lot Restroom Repl. 2,900, ,000 43, % 0902 TP Admin Bldg. Restroom Mod 194,000 5, % 0904 Vapor Recovery System Ph. II 40,000 19,400 11, % 0905 Replace Crash Attenuators 1,500,000 10, % 0933 Sergeants Area Counter 28,000 28, % 1001 Enlarge Machine Shop Door 50,000 5, % 1002 Alexander Ave. Guardrail 410,000 10, % 1003 FY10 Capital Equip. Bridge 932, , , % 1004 Electrical Svc. N. Approach 1,610, , % 1005 Changeable Signs Toll 355,000 75, % 1006 FY10 Cap Equip. Café/Gift Ctr. 45,000 45, % 1032 Boiler Chimney & Flue 45,000 45, % 1033 HVAC Purchase & Pub. Info. 30,000 30,000 29, % 1034 Replace Hot Water Heater 10,000 10, % 1035 GGB Informal Science Education 3,499, , , % 1036 AET-Strategic Plan Development 337,000 60, % Total Bridge Division Other $81,195,100 $7,368,900 $4,332, % Total Bridge Division $244,152,200 $35,569,400 $21,477, % Capital Fund Source Total Project FY 09/10 Budget FY 09/10 Actual FY 09/10 Funding District $60,746,300 $5,966,600 $3,964, % Federal 160,405,900 27,535,000 16,834, % State/Other 23,000,000 2,067, , % Total Expenditures $244,152,200 $35,569,400 $21,477, % 162

165 PREVIOUS YEAR FY 09/10 CAPITAL PROGRAM ACCOMPLISHMENTS BUS DIVISION Previous FY 09/10 capital expenditures for the Bus Division totaled $22.8 million, funded with $2.0 million or 8.9% District funds and $20.8 million or 91.1% Other (grant) funds. Project Number & Description Total Project FY 09/10 Budget FY 09/10 Actual Actual/ Budget Bus Division 9707 Replace Fareboxes $3,355,100 $226,500 $100, % 0312 Install Particulate Traps 2,000,000 50, % 0502 Adv. Comm. & Info. System 19,377,500 3,000,000 2,826, % 0611 Hastus Upgrade 455,000 21,900 30, % 0713 Body Shop Roof Replacement 772, , , % 0808 Replace Buses 13,929,800 13,473,600 12,548, % 0809 SR Transit Center Improvements 365,000 20,000 5, % 0810 SR Data Center 2,451,900 1,793,900 1,569, % 0811 D1/D3 Wash Racks/Water Recl. 2,670, , , % 0821 Perimeter Security & Surv. 877, ,200 5, % Hybrid Buses 4,628,000 4,628,000 4,536, % Position Bike Racks on Buses 153, ,600 51, % 0910 Concrete Work - Shop 48,000 5, % Paratransit Vans 1,043, ,500 (300) -0.2% 0934 Admin. Building Auto Door 10,500 10,500 9, % 0935 Driver's Door Enclosure 50,000 2, % 1007 Security Upgrade at Santa Rosa 866,700 10, % 1008 Renovate D1 Drivers' Restroom 675,000 40,000 36, % 1009 Bus Stop/ADA Site Imp. 115,000 10, % 1010 Install Bike Racks at SRTC 35,000 23,000 1, % 1011 Replace Fire Alarm System 300,000 5, % 1012 FY10 Cap Equipment - Bus 121, ,300 36, % 1014 Replace Heater 34,500 2, % 1015 D1 Admin. Building Lighting 20,000 2, % 1016 Expand Visitor Parking Lot at D1 83,000 5, % Paratransit Vans 804,000 10, % 1018 New SF Bus Facility Mods. 3,500,000 20,000 2, % Total Bus Division $58,741,000 $24,923,700 $22,759, % Capital Fund Source Total Project FY 09/10 Budget FY 09/10 Actual FY 09/10 Funding District $6,487,700 $2,327,500 $2,014, % Federal 43,252,000 18,104,500 16,644, % State/Other 9,001,300 4,491,700 4,100, % Total Expenditures $58,741,000 $24,923,700 $22,759, % 163

166 PREVIOUS YEAR FY 09/10 CAPITAL PROGRAM ACCOMPLISHMENTS FERRY DIVISION Capital expenditures for the Ferry Division during the previous FY 09/10 totaled $12.7 million, funded with $1.7 million or 13.0% District funds and $11.0 million or 87.0% Other (grant) funds. Project Number & Description Total Project FY 09/10 Budget FY 09/10 Actual Actual/ Budget Ferry Division 9710 Corte Madera Marsh Restoration $1,535,000 $1,000 $- 0.0% 0503 Gangway & Piers Design 7,844,000 2,100, , % 0514 Ferry Faregates & Ticket System 4,000, , , % 0716 Comm. & Surveillance Equip. 214,200 64, % 0719 Berth Dredging 1,224, , , % 0822 Security Shelter 325, ,000 88, % 0913 Fuel Farm Incidental 150,000 10, % 0914 Secure Fender/Oil Contain 75,000 40,000 32, % 0915 SFFT Public Restroom Refurb. 232, ,800 57, % 0916 Ferry Utility System 800,000 10, % 0917 LFT Parking Garage 21,000,000 10, % 0918 LFT Restroom & Access 680, , , % 0920 Spaulding Solid Ballasts 150,000 20,000 16, % 0921 Replace Main Propulsion 240,000 58,500 58, % 0922 Repower MV Del Norte 6,075,000 3,970,800 2,765, % 0931 Purchase & Rehab MV Chinook 11,705,000 6,000,000 3,740, % 0932 Purchase & Rehab MV Napa 11,705,000 3,500,000 3,285, % 1019 Rehab LFT Maintenance Facility 735,000 10, % 1020 SFFT Building Upgrades 225,000 10, % 1021 Digital Video Security 386, ,000 69, % 1022 Bike Racks at LFT 140,000 70,000 5, % 1023 Channel Dredging 8,506,000 4,111, , % 1024 FY10 Capital Equipment Ferry 206, , , % 1025 LFT Utility Rehab 800, , , % 1026 Power Distribution MS SF 400,000 15,000 11, % 1029 Mid-life Refurb. MV Mendocino 1,025,000 15,000 12, % 1030 Overhaul MS Sonoma 620, , , % 1031 Battery System - Spaulding 180,000 25,000 20, % Total Ferry Division $81,177,500 $22,889,400 $12,746, % Capital Fund Source Total Project FY 09/10 Budget FY 09/10 Actual FY 09/10 Funding District $23,654,600 $2,933,700 $1,654, % Federal 48,711,100 15,968,400 8,324, % State/Other 8,811,800 3,987,300 2,767, % Total Expenditures $81,177,500 $22,889,400 $12,746, % 164

167 PREVIOUS YEAR FY 09/10 CAPITAL PROGRAM ACCOMPLISHMENTS DISTRICT DIVISION Capital expenditures for the District Division during the previous FY 09/10 totaled $1.7 million, funded with $0.3 million or 19.5% District funds, and $1.4 million or 80.5% Other (grant) funds. Project Number & Description Total Project FY 09/10 Budget FY 09/10 Actual Actual/ Budget District Division 0117 Financial & Maint. Mgmt Syst. $2,980,000 $18,700 $1, % 0118 Asset & Veh Fluid Mgmt System 5,195,000 2,294,400 1,393, % 0801 Payroll Office Renovation 120,000 10, % 0925 Telephone Switch Replacement 1,145, , , % 0926 Auto Attendant 100,000 25, % 1027 Computer/Communications Eq. 13,400 13,400 6, % 1028 District Capital Equipment 185, , , % Total District Division $9,738,600 $2,896,500 $1,732, % Capital Fund Source Total Project FY 09/10 Budget FY 09/10 Actual FY 09/10 Funding District $2,914,800 $591,900 $338, % Federal 4,660,900 1,349, , % State/Other 2,163, , , % Total Expenditures $9,738,600 $2,896,500 $1,732, % 165

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169 Major Sources of Grant Funds GRANT FUNDING SOURCES Type of Funds Eligible Projects Programming Process / Agency Program Cycle Amount in FY 10/11 Budget Secured for Future Years Transportation Development Act (TDA) General Operating Per agreement with the Counties and MTC. Annual application to MTC Annual Operating Marin $4,969,230 Sonoma $3,754,700 Operating Marin TBD Sonoma TBD State Transit Assistance Act (STA) General Operating or Capital Revenue Based - Servicebased Formula Population Based - MTC discretion Annual Operating $4,446,500 Operating TBD Regional Measure 2 Capital, operating and various transportation projects that reduce vehicular traffic congestion on state owned toll bridges in the SF Bay Area Progamming application to MTC Annual Operating $2,492,500 Capital $1,407,400 Operating $2,492,500 Capital $1,764,700 Infrastructure Bond - PTMISEA Account Transit Capital Application to Caltrans/MTC Annual for 10 year period Capital $1,491,800 Capital $779,600 Infrastructure Bond - Transit Security Transit Capital Application to Caltrans Annual for 10 year period Capital $622,300 Capital $1,350,900 State Transportation Improvement Program Capital Replacement and Expansion County Congestion Management Agencies (CMA) and MTC Bi-Annual Capital $927,500 Capital $20,196,100 Section 5307 Formula Grant Program - FTA Revenue vehicle replacement, capitalized maintenance* and other high-priority capital projects Programming application to MTC. Contract application and award by FTA Annual - MTC discretionary *Operating $0 Capital $10,476,300 *Operating $0 Capital $56,648,000 Section 5309 Fixed Guideway Program - FTA Projects to modernize or improve fixed guidway systems (ferry) Programming application to MTC. Contract application and award by FTA Annual - MTC discretionary Capital $5,700,900 Capital $11,154,600 Economic Stimulus - ARRA Economic stimulus funds for Transit Capital projects Programming application to MTC. Contract application and award by FTA One-time Capital $4,184,800 Capital $3,700,600 Ferry Boat Discretionary - FHWA Construction of ferry boats and ferry facilities Application to Caltrans/FHWA and/or Congressional Earmark Annual Earmark / DOT discretionary Capital $800,000 Capital $2,400,000 STP and CMAQ - FHWA Various transportation rehabilitation projects Programming application to MTC / CMAs. Contract application and award by FTA Bi-Annual Capital $0 Capital $2,200,000 State Highway Bridge Rehabilitation and Replacement (HBRR) Replacement or rehabilitation of highway bridges Application to and award by Caltrans Ongoing Capital $12,068,800 Capital $111,856,600 SAFETEA-LU High Priority Demonstration Earmark Various transportation projects - GGB Seismic Retrofit Congressional Earmark - Contract with Caltrans One-time Capital $16,360,700 Capital $852,900 Miscellaneous Federal/State/Local Funds Suicide Deterrent, GGB miscellaneous projects STP Exchange, Coastal Conservancy, NTPP Ongoing Capital $721,000 Capital $4,651,

170 Type of Funds Section 5303 Planning Grant - FTA Homeland Security Carl Moyer Grant Program Transportation Fund for Clean Air (TFCA) Eligible Projects Short Range Transit Plan (SRTP) Various Safety and Security Initiatives Various air pollution emission reduction projects Low/Zero emission vehicles/buses, feeder service to ferry stations Programming Process / Agency SRTP required as precondition to obtaining federal and state operating/capital funds Post-9/11 Department of Homeland Security allocation to States Bay Area Air Quality Management District Bay Area Air Quality Management District for Regional Funds and County CMA for Program Manager funds Program Cycle Annual per agreement As funds appropriated Ongoing Annual Amount in FY 10/11 Budget Operating $0 Operating $250,000 Capital $614,700 Capital $774,100 Operating $0 Capital $0 Secured for Future Years Operating $50,000 Operating $0 Capital $612,500 Capital TBD Operating $0 Capital $0 TOTAL GRANT FUNDS OPERATING $15,912,930 $2,542,500 TOTAL GRANT FUNDS - CAPITAL $56,160,700 $218,168,

171 GGBHTD TEN YEAR CAPITAL REQUIREMENT CAPITAL PROJECT DETAIL BRIDGE BUS FERRY DISTRICT AGENCY TOTAL CUMULATIVE TOTAL GGBHTD 10-Year Capital Plan 10-YR 10-YR 10-YR <<<=10-YEAR PROJECTED CAPITAL NEED =>>> PRIOR FUTURE TOTAL TOTAL DISTRICT GRANTS FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 YEAR YEAR PROJECT ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) DISTRICT 173, ,080-16,160 11,760 15,940 22,940 32,670 28,550 16,870 8,290 3,180 16,720 GRANTS 512, ,250 78,590 44,790 50,570 80,990 96,140 75,400 26,610 9,850 6,600 42,710 TOTAL 685, , ,250 94,750 56,550 66, , , ,950 43,480 18,140 9,780 59, , ,270 1,264,490 DISTRICT 27,930 27,930-4,500 2,680 1,090 2,400 4,110 5,060 2, ,930 GRANTS 156, ,870 27,410 24,080 4,150 13,130 23,990 23,210 5,620 11, ,720 TOTAL 184,800 27, ,870 31,910 26,760 5,240 15,530 28,100 28,270 7,900 12,390 1,050 27,650 23,580 26, ,170 DISTRICT 47,900 47,900-6,830 4,750 7,110 7,450 6,420 3,360 4,390 1,950 1,320 4,320 GRANTS 192, ,790 22,530 13,590 14,720 33,840 25,930 16,900 22,320 11,380 11,840 19,740 TOTAL 240,690 47, ,790 29,360 18,340 21,830 41,290 32,350 20,260 26,710 13,330 13,160 24,060 27,300 56, ,520 DISTRICT 10,580 10,580-1, ,940 1, ,130 1,060 GRANTS 7,730-7, ,050 3, TOTAL 18,310 10,580 7,730 1, ,700 4,100 3,620 1,040 1,170 1,280 1,110 2,850-21,160 DISTRICT 259, ,490-28,750 19,940 25,040 34,730 44,250 37,560 24,530 11,750 5,920 27,030 GRANTS 869, , ,820 82,510 69, , , ,540 54,600 33,280 19,350 85,220 TOTAL 1,129, , , , ,450 94, , , ,100 79,130 45,030 25, , , ,590 1,845,340 DISTRICT 259, ,490-28,750 48,690 73, , , , , , , ,490 GRANTS 869, , , , , , , , , , , ,640 TOTAL 1,129, , , , , , , , , , ,620 1,016,890 1,129, , ,590 1,845,

172 GGBHTD 10-Year Capital Plan BRIDGE DIVISION 10-YR 10-YR 10-YR <<<=10-YEAR PROJECTED CAPITAL NEED =>>> PRIOR FUTURE TOTAL CAPITAL PROJECT DETAIL TOTAL DISTRICT GRANTS FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 YEAR YEAR PROJECT ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) BRIDGE SEISMIC RETROFIT Design Initial Design ,310-16,310 Phase II Design Review ,470-1,470 Phase III Design Review 29, ,974 29, ,850-40,720 Mitigation Mission Blue Butterfly Habitat Construction Phase I - North Approach ,270-70,270 Phase II - South Approach , ,240 Phase IIIA - No. Anch. Housing/No. Pylon 60,710 3,454 57,256 36,000 24, , ,220 Beam Span Repair 2,320 2,320-2, ,000 Phase IIIB - Suspension Bridge 240,000 50, ,260 5,000 15,000 50,000 60,000 60,000 50, ,000 Subtotal Seismic Construction 303,030 56, ,516 43,320 39,710 50,000 60,000 60,000 50, , ,730 SAFETY/SECURITY ENHANCEMENTS Facility Improvements Suicide Deterrent 51,250-51, ,500 18,000 21,780 5, ,890-53,140 Moveable Median Barrier 23,020 3,223 19,797 10,000 9,000 4, ,980-25,000 Seismic Facilities - Underpass and Bridges 39,450 19,725 19, ,780 17,420 13, ,450 Seismic Facilities - Building Ops Center 6,760 1,350 5, ,150 3, ,760 Crash Attenuators 1,250 1,250-1, ,500 Equipment/Systems Earthquake/Bridge Monitoring Electrical Service to No. Approach 1,510 1, , ,610 Security Systems Improvements 3, ,860 2, ,570 FACILITIES/BRIDGE REHABILITATION Bridge Access Systems Rolling Access on Suspension Bridge ,850 10,850 South Approach & Arch Platforms 3,140 3, ,070 2, ,140 SAV Maintenance Access 3,160 3, ,130 1, ,160 Bridge Paint Rehabilitation Main Cable Access 3,180 3,180-3, ,820-5,000 North-End Paint Rehabilitation ,270 47,270 South Tower Access and Paint Rehabilitation 35,750 17,875 17, ,030 1, ,980 12,020 12,330 4, ,760 Suspension Bridge Superstructure Paint Rehab 52,960 10,590 42, ,850 48,110-49, ,370 North Tower Paint Rehabilitation ,940 34,940 Suspension Bridge Underdeck Recoating ,280 76,280 (continued) 170

173 GGBHTD 10-Year Capital Plan BRIDGE DIVISION (continued) 10-YR 10-YR 10-YR <<<=10-YEAR PROJECTED CAPITAL NEED =>>> PRIOR FUTURE TOTAL CAPITAL PROJECT DETAIL TOTAL DISTRICT GRANTS FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 YEAR YEAR PROJECT ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) FACILITIES/BRIDGE REHABILITATION (cont) Roadway/Structure Rehabilitation Floor Beam & Bracing Repl/Rehab 72,800 14,560 58, ,800 18,800 20,500 20, ,800 Bridge Pavement Repair 8,530 4,265 4, ,290-8,520 17,050 Maintenance/Operations Buildings Maintenance Facility Relocation 9,150-9, ,500 4, ,150 Roof Rehabilitations 1,300 1, ,300 Misc. Facilities Rehabilitation/Improvements 4,970 4, , , ,970 Grounds TP East Parking Lot Restroom Replacement 2,250 1, ,250 1, ,890 Pave/Maintain Alexander Avenue 5,490 2,745 2, ,110 2, ,490 Pavement Rehabilitation 1,530 1, , ,530 GGB Informal Science Education 2, , ,640 - INFORMATION TECHNOLOGY Toll Collection/Fastrak Replace Toll/Fastrak Systems 7,540 7, ,060 3, ,810 Variable Message Signs CAPITAL EQUIPMENT Tools and Equipment 10,600 10,600-1,000 1, ,080 1, ,170 1,200 1,240 1, ,600 TOTAL 685, , ,250 94,750 56,550 66, , , ,950 43,480 18,140 9,780 59, , ,270 1,264,490 25% 75% PROJECTED GRANT FUNDS 512,250 78,590 44,790 50,570 80,990 96,140 75,400 26,610 9,850 6,600 42,710 DISTRICT FUNDS REQUIRED 173,080 16,160 11,760 15,940 22,940 32,670 28,550 16,870 8,290 3,180 16,

174 GGBHTD 10-Year Capital Plan BUS DIVISION 10-YR 10-YR 10-YR <<<=10-YEAR PROJECTED CAPITAL NEED =>>> PRIOR FUTURE TOTAL CAPITAL PROJECT DETAIL TOTAL DISTRICT GRANTS FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 YEAR YEAR PROJECT ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) REVENUE VEHICLE REPLACEMENT Replace Buses (Regional) 110,310 18,750 91,560 19,410 8,540-9,946 17,957 23,866 4, ,932 11,510 20, ,250 Replace Buses (Local) 23,660-23,660-7,420-2,064 5, , ,360 30,600 ADA Paratransit Vans 5,630-5, ,640 Install PM Traps on Buses ,190-2,000 SAFETY/SECURITY ENHANCEMENTS Equipment/Systems Security Systems 2, , , ,320 Advanced Communication & Info. System 10, ,416 5,000 5, ,490-19,340 FACILITIES REHABILITATION Maintenance/Operations Buildings Bus Stop Improvements 2, , , ,590 Roof Replacement/Rehab 2, , , ,060 Miscellaneous Facilities Rehab 5, , , , ,170 Maintenance Shop Refurbishment 4, , ,000 2, ,900 Replace Bus Facilities Wash Racks 3, , , ,800-5,320 Bus Steam Clean Area 1, , , ,800 Fuel Systems Rehabilitation/Replacement 1,500 1, , ,500 Grounds Bus Lots Pavement Rehabilitation 3,900-3,900 1, , ,900 Park & Ride Lots Pavement Rehabilitation 1, ,060 INFORMATION TECHNOLOGY Computer Scheduling/Dispatch CAPITAL EQUIPMENT Tools and Equipment 3,970 2,970 1, , ,970 TOTAL 184,800 27, ,880 31,910 26,760 5,240 15,530 28,100 28,270 7,900 12,393 1,050 27,652 23,580 26, ,170 15% 85% PROJECTED GRANT FUNDS 156,870 27,410 24,080 4,150 13,130 23,990 23,210 5,620 11, ,720 DISTRICT FUNDS REQUIRED 27,930 4,500 2,680 1,090 2,400 4,110 5,060 2, ,

175 GGBHTD 10-Year Capital Plan FERRY DIVISION 10-YR 10-YR 10-YR <<<=10-YEAR PROJECTED CAPITAL NEED =>>> PRIOR FUTURE TOTAL CAPITAL PROJECT DETAIL TOTAL DISTRICT GRANTS FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 YEAR YEAR PROJECT ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) REVENUE VEHICLE REPLACEMENT WSF Vessel Purchase/Refurbishment 1st 2, ,910 2, ,770-11,710 WSF Vessel Purchase/Refurbishment 2nd 4, ,820 4, ,930-11,710 Spaulding Refurbishment (SF) 9,800 1,960 7,840 3,000 3,000 3, ,000 Vessel Component Rehab 7,450 1,120 6,330 1,370 2, , ,450 Major Propulsion Replacement 37,190 2,050 35,140-4,690-4,950-5,220 5,360 5,510 5,650 5,810-37,190 SAFETY/SECURITY ENHANCEMENTS Equipment/Systems Security Systems 1, , ,710 FACILITIES REHABILITATION Fixed Guideway Channel Dredging 51,790 10,360 41,430 8, , , ,930 5,000 35,510 92,300 Berth and Turning Basin Dredging 9,040 1,810 7, , , ,500 14,810 25,350 Fixed Guideway Connectors Float Rehabilitation/Replacement 39,000 13,735 25,265 4,700 5,960 9,500 4,950 5,370 4,020 1, ,000 1,000 6,210 46,210 Gangway Rehabilitation/Cathodic Protection 12,360 2,470 9, ,300 3,000 3,500 3, ,360 SFFT Lay Berth Facility 4, , , ,000 Maintenance/Operations Buildings - Rehabilitate Larkspur Maintenance Facility 5,230-5, , ,240 Facilities Roof Rehabilitation 1,070-1, ,070 Ticketing System Faregates 1, ,044 1, ,260-4,000 Miscellaneous Facilities Rehab 2,160-2, , ,160 Terminal Facilities Passenger Terminal Rehabilitation 5, , , ,220 Marsh Restoration 1,300 1, , ,530 Larkspur Parking Rehabilitation/Improvements 41,800 8,360 33, ,000 15,000 15,000 5,000-3, ,800 CAPITAL EQUIPMENT Tools and Equipment 1,760 1, ,760 TOTAL 240,690 47, ,790 29,360 18,340 21,830 41,290 32,350 20,260 26,710 13,330 13,160 24,060 27,300 56, ,520 20% 80% PROJECTED GRANT FUNDS 192,790 22,530 13,590 14,720 33,840 25,930 16,900 22,320 11,380 11,840 19,740 DISTRICT FUNDS REQUIRED 47,900 6,830 4,750 7,110 7,450 6,420 3,360 4,390 1,950 1,320 4,

176 GGBHTD 10-Year Capital Plan DISTRICT DIVISION 10-YR 10-YR 10-YR <<<=10-YEAR PROJECTED CAPITAL NEED =>>> PRIOR FUTURE TOTAL CAPITAL PROJECT DETAIL TOTAL DISTRICT GRANTS FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 YEAR YEAR PROJECT ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) SAFETY/SECURITY ENHANCEMENTS Equipment/Systems Security Systems FACILITIES REHABILITATION Maintenance/Operations Buildings Miscellaneous Facilities Rehab 2,120 2, , ,170 Office Facility Renovation/Consolidation 6,590-6, ,900 2, ,590 INFORMATION TECHNOLOGY Future Information Technology 2,090 1,045 1, ,090 Replace Computer/Network Equipment 3,230 3, ,230 Financial Management Information System ,800-2,980 CAPITAL EQUIPMENT Tools and Equipment 4,100 4, ,100 TOTAL DISTRICT CAPITAL 18,310 10,580 7,730 1, ,700 4,100 3,620 1,040 1,170 1,280 1,110 2,850-21,160 58% 42% PROJECTED GRANT FUNDS 7, ,050 3, DISTRICT FUNDS REQUIRED 10,580 1, ,940 1, ,130 1,

177 Agenda Item No. 5.A. Special Meeting of the Board of Directors To: From: Subject: Board of Directors Meeting of October 30, 2009 Joseph M. Wire, Auditor-Controller Celia G. Kupersmith, General Manager DISCUSSION AND POSSIBLE ACTION RELATIVE TO APPROVAL OF THE FY 2009/2010 FINANCIAL PLAN FOR ACHIEVING LONG-TERM FINANCIAL STABILITY Recommendation It is recommended that the Board of Directors approve the FY 2009/2010 Financial Plan for Achieving Long-Term Financial Stability. Background This report is the final product of the Financial Planning Advisory Committee. The Committee was created by the Board in May of 2009 to create a proposed Plan to address the District's projected financial deficit as outlined at the Board's April 10 th Workshop on the District's financial condition. This report contains the proposed attached Financial Plan (Plan) that would guide the District in its long-term deficit reduction effort. It presents a path that, if implemented as presented, would eliminate the projected five and ten year deficits. The Committee recommends the approval of the proposed Plan. Please note that approval of the proposed Plan is not the approval of any of the specific initiatives within the Plan. Prior to implementation of any specific initiative, further staff analysis will be done and as required by Board policy, each element of the Plan will be brought through the Board's committee structure and then forward to the Board for approval prior to implementation. Also, some initiatives will require public outreach and public hearings before implementation. The Financial Plan is a set of initiatives that, if implemented, would enable the District to put itself on a sustainable financial footing. It will be monitored, reviewed and updated annually as part of the Board s regular financial planning cycle that currently includes the yearly budget and long-term financial projection. The Plan will be a living document subject to change year-toyear as initiatives are completed, new ideas and concepts come along and as further analysis yields new information. 175

178 Development of the Financial Plan As the first step in creating a draft Financial Plan, the Advisory Committee developed guiding principles to assist in identifying initiatives for inclusion in the Plan. Secondly, they established a set of priorities to guide in developing timeframes for undertaking the proposed initiatives in the Plan. Guiding Principles 1. The Advisory Committee will develop a Financial Plan whose components the Committee members can support going to the full Board of Directors and its Committees for further investigation and action. 2. The Committee will be guided by the Mission Statement of the District in reviewing options for expense reduction and revenue generation: The mission of the Golden Gate Bridge, Highway & Transportation District (District) is to provide safe and reliable operation, maintenance and enhancement of the Golden Gate Bridge and to provide transportation services, as resources allow, for customers within the U.S. Highway 101 Golden Gate Corridor. 3. The Financial Plan will assign priorities to guide implementation work on each initiative in recognition of limited staff resources and the importance of keeping existing initiatives now underway at the District moving forward on schedule. 4. The focus of the Advisory Committee will include both expense reductions and revenue generation. 5. The first focus of the expense reduction initiatives will be changing our delivery system for most services, so as to reduce expenses, and secondarily on the elimination of services. 6. The goal of the Advisory Committee is to produce a Financial Plan for Board consideration in September/October Priority Criteria Given that the Committee knew that not everything could be accomplished at once, and that some initiatives take longer to flesh out, it used the following set of priorities to guide the ordering of initiatives in the Plan. A. Complete initiatives already underway. B. Undertake initiatives that are relatively quick and easy to do within months (even if they have a small financial impact). C. Undertake initiatives that have substantial payoff potential but require a longer lead-time to fully implement. 176

179 D. Undertake initiatives that cannot be implemented soon due to limitations imposed by practical and/or policy interests. As a result, proposals that fit under priority A were included in the Plan in earlier phases than those that fell under priority D. Plan Design The proposed Financial Plan is designed both to achieve deficit reduction and to provide clear guidance to staff about what should be taken on in their annual work plans. Deficit Reduction - In order to demonstrate that the Plan could meet the first goal, each of its initiatives includes an estimate (where possible) of its potential impact on the projected deficit. At the end of the Plan is a summary that identifies the current projected deficit and the impact that all of the initiatives would have on that deficit amount if they were all implemented. Prioritization Based on the guiding principles and priority criteria listed above, the Plan presents initiatives in three phases: Phase I Initiatives that staff is either working on now or will begin soon. New initiatives will need to come through the Board committee process for review and consideration in the next few months. Others will take much longer to be developed but work is proposed to begin now on those initiatives. Phase II Initiatives that staff are to work on once staff time has become available due to the completion of the majority of Phase I initiatives. Phase III Initiatives that will begin in later years because there are operational, practical or policy concerns that led the Committee to focus these initiatives for the later phase of the Plan. The Plan uses the same five and ten year periods as the most current projection which were presented to the Finance Committee on September 24, The five-year horizon starts with the next fiscal year that will begin effective July 1, 2010, and ends at the end of the fifth year on June 30, 2015, while the ten-year horizon ends June 30, While the main focus of this effort is on the next five years, the ten year impact of the various initiatives is included to reinforce each initiative s long-term value in reducing the deficit, especially those initiatives that are projected to take several years to implement or will begin in later years of the Plan. Next Steps Following staff presentation and general Board discussion of the proposed Financial Plan, if willing, the Board can take action on the proposed Plan. Alternatively, the Board may wish to defer action on the Plan to their November 20 th meeting. Once a Plan is approved, staff will bring initiatives through the Board s regular committee process as soon as they are ready. Once an initiative has been approved by the Board for 177

180 implementation, its impact on the deficit will be included in future budgets and long-term projections. The Plan will be updated annually with completed, dropped or added initiatives and will be compared to each year s updated projection to monitor the progress of reducing the deficit. Fiscal Impact There is no direct fiscal impact from the approval of the FY 2009/2010 Strategic Plan for Achieving Long-Term Financial Stability. Fiscal impacts will be evident when specific initiatives are approved for implementation. Attachment 178

181 ATTACHMENT Proposal Projected Deficit FY11 to FY20 Annual Deficit Impact 1-YR FY 10/11 FINANCIAL PLAN (Cumulative $ in millions) Estimated Forecast 2-YR FY 10/11-11/12 3-YR FY 10/11-12/13 4-YR FY 10/11-13/14 5-YR FY 10/11-14/15 Projected 10-YR FY10/11 - FY 19/20 $ (13) $ (31) $ (56) $ (92) $ (132) $ (417) Assumptions: savings estimated to be "net" amount. Shading indicates projects not implemented. Each FTE estimate reflect possible FTEs impacted per proposal. PHASE 1 Increased Efficiencies Through Technology 1 New Banking Collections $ 0.3 $ 0.3 $ 0.6 $ 1.0 $ 1.3 $ 1.6 $ 3.5 Money counts to be done by bank. May impact 3 FTEs. 2 Further Reliance on Automated Information for Transit Customers $ $ 0.5 $ 1.0 $ 1.6 $ 2.1 $ 5.2 Utilize automated info systems like 511 or Google Transit. May impact 5 FTEs. 3 Continue Reducing Manual Collection of Tolls $ 0.4 $ 0.4 $ 0.8 $ 1.3 $ 1.7 $ 2.2 $ 4.7 Reduces the number of staffed lanes based on current traffic patterns. May impact 4 FTEs. 4 Implement All Electronic Tolling $ $ 1.9 $ 3.8 $ 5.7 $ 16.3 Numbers presented represent net savings after expenses. May impact 35 FTEs. 5 Automate Ferry Revenue Collection $ $ 0.6 $ 1.3 $ 1.9 $ 2.6 $ 6.2 Install ticket machines. May impact 7 FTEs. 6 Replace Existing Ferry Terminal Gangways and Piers $ $ 0.3 $ 0.6 $ 2.3 Increase operating efficiency. May impact 2 FTEs. 7 Implement Moveable Median Barrier TBD - - $ - $ - $ - $ - May impact 9 FTEs in lane management; may need new FTEs for system operation. 8 Complete Implementation of ACIS Project TBD - - $ - $ - $ - $ - Project will eliminate need for casual traffic checkers, but may require additional staff elsewhere. Transit Service Changes and Fare Increases 9 Eliminate Duplicative Bus Service and Bus/Ferry Trips with Low Ridership: Respond to Upcoming Sonoma County Changes $ 1.1 $ 1.1 $ 2.3 $ 1.2 $ 4.7 $ 6.0 $ 12.8 Staff impacts to be determined via Hastus. 10 Generally Reduce Bus Budget $ $ 2.1 $ 4.2 $ 6.3 $ 18.2 Staff impacts would be determined via Hastus. 11 Close Ferry Service during December Holiday period $ $ 0.3 $ 0.6 $ 1.0 $ 2.7 Assumes two week closure and reliance on buses. 12 Fare Increase on Regional Buses for Local Trips $ 0.1 $ 0.1 $ 0.2 $ 0.3 $ 0.4 $ 0.5 $ 1.2 Assumes 10% increase in Marin-only trips on regional bus routes. Page 1 of 4 179

182 ATTACHMENT Proposal 13 Reduce Ferry Fare Discount for Translink riders from 40% to 30% 14 Further Reduce Ferry Fare Discount for Translink riders from 30% to 20% Annual Deficit Impact 1-YR FY 10/11 FINANCIAL PLAN (Cumulative $ in millions) Estimated Forecast 2-YR FY 10/11-11/12 3-YR FY 10/11-12/13 4-YR FY 10/11-13/14 5-YR FY 10/11-14/15 Projected 10-YR FY10/11 - FY 19/20 Assumptions: savings estimated to be "net" amount. Shading indicates projects not implemented. Each FTE estimate reflect possible FTEs impacted per proposal. $ 0.5 $ 0.5 $ 1.0 $ 1.6 $ 2.1 $ 2.7 $ 5.8 Gradually reduce discount to match Bus discount rate of 20%. $ $ 0.5 $ 1.0 $ 1.6 $ 2.1 $ 5.2 Gradually reduce discount to match Bus discount rate of 15 Charge for Parking at Larkspur Ferry $ $ 0.9 $ 1.8 $ 2.7 $ 3.6 $ 8.1 Assumed at $2/day. No staff impacts included. Districtwide Reductions 16 Adjust 10-Year Capital Plan $ 4.5 $ 4.6 $ 9.4 $ 14.3 $ 19.3 $ 24.4 $ 52.5 Assumed longer timeframe to do projects or increased grant commitments to reduce Capital plan costs by 15%. 20%. 17 Reduce Administrative Expense (Overhead) $ 0.6 $ 0.6 $ 1.2 $ 1.9 $ 2.6 $ 3.3 $ 7.0 Improve efficiency in administrative processes annually. Could impact 4 FTEs. 18 Freeze Non-Represented and Officers an Additional 6 Months to Match Coalition $ 0.2 $ 0.1 $ 0.2 $ 0.4 $ 0.6 $ 0.9 $ 2.1 An additional 6-months salary freeze for non-represented employees/officers. 19 Freeze ATU Employee Salaries for 18 Months $ 0.8 $ 0.8 $ 1.7 $ 2.6 $ 3.6 $ 4.6 $ 10.0 Match salary freeze for Coalition and Non-Represented staff. 20 Winter Holiday Furloughs for Administrative & Operational Staff, as Possible TBD $ - $ - $ - $ - $ - $ - Reduce functions between Christmas and New Year's. OTHER 21 Negotiate Lower Rent for New SF Bus Lot $ $ 0.7 $ 1.4 $ 2.1 $ 2.8 $ 6.7 New lot becomes available FY 11/ Implement Expanded Bridge Concession Opportunities $ $ 9.0 $ 18.0 $ 63.3 Implement concessions that expand possibilities for the visitor experience at the Bridge. 23 Carpool Toll - Charge 50% of Cash Toll $ 1.2 $ 1.2 $ 2.4 $ 3.6 $ 4.8 $ 6.0 $ 12.0 Under consideration on State Bridges. PHASE II 24 Negotiate Increased Cost Sharing for Health Benefit Plans for All Covered Individuals 25 Renew Transit Fare Increase Plan: Annual 5% Fare Increases for Bus and Ferry Transit Fares 26 Reduce Paratransit Services to More Stringently Comply with ADA Requirements 27 Investigate Elimination of Comp Time for Tier II Exempt Employees SUBTOTAL PHASE I $ 26.2 $ 9.8 $ 23.1 $ 38.8 $ 68.9 $ 97.1 $ $ $ 0.8 $ 1.7 $ 2.5 $ 7.3 Goal is $800,000/yr through changes (i.e, cafeteria, 2-tier, dependent, etc.) $ $ 0.5 $ 1.0 $ 1.6 $ 2.1 $ 5.4 New plan would begin FY 11/12, once current plan expires. TBD - $ - $ - $ - $ - $ - Consider reducing scale of paratransit to match ADA requirements only. TBD - - $ - $ - $ - $ - Would affect approximately 50 FTEs SUBTOTAL PHASE II $ 1.3 $ - $ 0.5 $ 1.8 $ 3.2 $ 4.7 $ 12.7 Page 2 of 4 180

183 ATTACHMENT Proposal Annual Deficit Impact 1-YR FY 10/11 FINANCIAL PLAN (Cumulative $ in millions) Estimated Forecast 2-YR FY 10/11-11/12 3-YR FY 10/11-12/13 4-YR FY 10/11-13/14 5-YR FY 10/11-14/15 Projected 10-YR FY10/11 - FY 19/20 Assumptions: savings estimated to be "net" amount. Shading indicates projects not implemented. Each FTE estimate reflect possible FTEs impacted per proposal. PHASE III 28 Toll Increase to Occur 5 Years After Last Increase $ $ 18.0 $ 36.0 $ Assumes a $1 toll increase in July Annual Small Increment Toll Increase Program $ $ 6.0 $ Begin annual indexing of tolls in FY 2014/15 to match proposed 5% transit fare percentage increases. 30 Implement Some Form of Partnership Program $ $ 1.0 $ 2.0 $ 3.0 $ 8.0 Develop partnership program that would involve all District operations. 31 Implement Sidewalk Access Fees TBD - $ - $ - $ - $ - $ - Charge fees for pedestrians and bicycles on the Bridge once seismic projects impacting the sidewalks are done 32 Close Satellite Bus Yard TBD $ - $ - Close one of the North Bay Bus facilities (Novato or Santa Rosa) 33 Restructure Security Program TBD - $ - $ - $ - $ - $ - Develop a coordinated partnership approach that reduces yearly operating costs. SUBTOTAL PHASE III $ 19.6 $ - $ - $ 1.0 $ 20.0 $ 45.0 $ Estimated Forecast SUMMARY 1-Year 2-Year 3-Year 4-Year 5-Year Projected 10-Year Impact TOTAL PROJECTED DEFICIT $ (13) $ (31) $ (56) $ (92) $ (132) $ (417) TOTAL ESTIMATED CHANGES - SAVINGS/REVENUES $ 10 $ 24 $ 44 $ 92 $ 147 $ 533 NET DEFICIT $ (3) $ (7) $ (12) $ 1 $ 15 $ 116 Possible FTEs Eliminated, Cumulative by Year* * Does not include Bus Operators, Servicers, Dispatchers, Bus Supervisors. In FY 2003/04 the Bus Division eliminated 22% of service and reduced 67 positions. A 10% reduction might result in a loss of approximately 30 positions. In addition, this plan does not include any additional FTEs due to new technology implementation. Page 3 of 4 181

184 ATTACHMENT FINANCIAL PLAN (Cumulative $ in millions) Estimated Forecast I. COMPETED PROJECTS Initiatives that have been completed in the prior year (FY 09/10) that are built into the new projection. This list will be updated each year to reflect completed projects. Projects Completed in FY 09/10 Concept Title Freeze Coalition Employees (18-month) Annual Deficit Impact 1-YR FY 09/10 2-YR FY 09/10-10/11 3-YR FY 09/10-11/12 4-YR FY 09/10-12/13 5-YR FY 09/10-13/14 Projected 10-YR FY 09/10-18/19 Assumptions: savings estimated to be "net" amount. Shading indicates projects not implemented. Each FTE estimate reflect possible FTEs impacted per proposal. $ 1.0 $ 1.0 $ 2.5 $ 4.1 $ 5.8 $ 7.4 $ month salary freeze for all union employees except ATU. Freeze Non-Represented and Officers (1-yr) $ 0.4 $ 0.4 $ 0.9 $ 1.3 $ 1.8 $ 2.2 $ month salary freeze for all nonrepresented employees and Officers. TOTAL $ 1.4 $ 1.4 $ 3.4 $ 5.4 $ 7.5 $ 9.6 $ 21.3 Page 4 of 4 182

185 Projected Deficit FY11 to FY20 PHASE 1 Increased Efficiencies Through Technology 1 New Banking Collections: Money counts to be done by bank. May impact 3 FTEs. 2 Further Reliance on Automated Information for Transit Customers: Utilize automated info systems like 511 or Google Transit. May impact 5 FTEs. 3 Continue Reducing Manual Collection of Tolls: Reduces the number of staffed lanes based on current traffic patterns. May impact 4 FTEs. 4 Implement All Electronic Tolling: Numbers presented represent net savings after expenses. May impact 35 FTEs. 5 Automate Ferry Revenue Collection: Install ticket machines. May impact 7 FTEs. Annual Deficit Impact 1-YR FY 10/11 FINANCIAL PLAN STATUS REPORT (Cumulative $ in millions) Estimated Forecast 2-YR FY 10/11-11/12 3-YR FY 10/11-12/13 4-YR FY 10/11-13/14 5-YR FY 10/11-14/15 Projected 10-YR FY10/11 - FY 19/20 Target First Board Action Full Implement Target Status of Project to Date $ (13) $ (31) $ (56) $ (92) $ (132) $ (417) $ 0.3 $ 0.3 $ 0.6 $ 1.0 $ 1.3 $ 1.6 $ 3.5 5/10 Budget 5/11 Budget Implemented with Proposed Budget FY 10/11; 2 FTEs not rehired. $ $ 0.5 $ 1.0 $ 1.6 $ 2.1 $ 5.2 Staff work developing options underway. $ 0.4 $ 0.4 $ 0.8 $ 1.3 $ 1.7 $ 2.2 $ 4.7 Implemented with Proposed Budget FY 10/11; 2 FTEs not rehired. $ $ 1.9 $ 3.8 $ 5.7 $ /10 12/13 Board approved development of strategic implementation plan. $ $ 0.6 $ 1.3 $ 1.9 $ 2.6 $ 6.2 3/10 5/11 Board awarded contract to purchase ticket machines. 183

186 6 Replace Existing Ferry Terminal Gangways and Piers: Increase operating efficiency. May impact 2 FTEs. 7 Implement Moveable Median Barrier: May impact 9 FTEs in lane management; may need new FTEs for system operation. 8 Complete Implementation of ACIS Project: Project will eliminate need for casual traffic checkers, but may require additional staff elsewhere. Transit Service Changes and Fare 9 Eliminate Duplicative Bus Service and Bus/Ferry Trips with Low Ridership: Respond to Upcoming Sonoma County Changes: Staff impacts to be determined via Hastus. 10 Generally Reduce Bus Budget: Staff impacts would be determined via Hastus. 11 Close Ferry Service during December Holiday period: Assumes two week closure and reliance on buses. 12 Fare Increase on Regional Buses for Local Trips: Assumes 10% increase in Marin-only trips on regional bus routes. Annual Deficit Impact 1-YR FY 10/11 FINANCIAL PLAN STATUS REPORT (Cumulative $ in millions) Estimated Forecast 2-YR FY 10/11-11/12 3-YR FY 10/11-12/13 4-YR FY 10/11-13/14 5-YR FY 10/11-14/15 Projected 10-YR FY10/11 - FY 19/20 Target First Board Action Full Implement Target Status of Project to Date $ $ 0.3 $ 0.6 $ 2.3 TBD - - $ - $ - $ - $ - 9/08 12/13 Board awarded initial environmental study and preliminary design. TBD - - $ - $ - $ - $ - TBD TBD Analysis of potential cost savings to be done after FDR in Summer, $ 1.1 $ 1.1 $ 2.3 $ 3.5 $ 4.7 $ 6.0 $ /10 9/10 Public Hearing in May, 2010, followed by final Board action in June, $ $ 2.1 $ 4.2 $ 6.3 $ 18.2 TBD 2012 Analysis to occur in $ $ 0.3 $ 0.6 $ 1.0 $ 2.7 TBD 2012 Analysis to occur in $ 0.1 $ 0.1 $ 0.2 $ 0.3 $ 0.4 $ 0.5 $ 1.2 TBD TBD Analysis to occur in

187 13 Reduce Ferry Fare Discount for Translink riders from 40% to 30%: Gradually reduce discount to match Bus discount rate of 20%. 14 Further Reduce Ferry Fare Discount for Translink riders from 30% to 20%: Gradually reduce discount to match Bus discount rate of 20%. 15 Charge for Parking at Larkspur Ferry: Assumed at $2/day. No staff impacts included. Districtwide Reductions 16 Adjust 10-Year Capital Plan: Assumed longer timeframe to do projects or increased grant commitments to reduce Capital plan costs by 15%. 17 Reduce Administrative Expense (Overhead): Improve efficiency in administrative processes annually. Could impact 4 FTEs. 18 Freeze Non-Represented and Officers an Additional 6 Months to Match Coalition: An additional 6-months salary freeze for nonrepresented employees/officers. Annual Deficit Impact 1-YR FY 10/11 FINANCIAL PLAN STATUS REPORT (Cumulative $ in millions) Estimated Forecast 2-YR FY 10/11-11/12 3-YR FY 10/11-12/13 4-YR FY 10/11-13/14 5-YR FY 10/11-14/15 Projected 10-YR FY10/11 - FY 19/20 Target First Board Action Full Implement Target Status of Project to Date $ 0.5 $ 0.5 $ 1.0 $ 1.6 $ 2.1 $ 2.7 $ 5.8 TBD 2011 Analysis to occur in Fall of $ $ 0.5 $ 1.0 $ 1.6 $ 2.1 $ 5.2 TBD TBD Analysis to occur in $ $ 0.9 $ 1.8 $ 2.7 $ 3.6 $ 8.1 TBD 2011 $ 4.5 $ 4.6 $ 9.4 $ 14.3 $ 19.3 $ 24.4 $ /10 Budget 6/10 Budget Implemented with Proposed Budget FY 10/11. $ 0.6 $ 0.6 $ 1.2 $ 1.9 $ 2.6 $ 3.3 $ 7.0 5/10 Budget 6/10 Implemented with Proposed Budget FY 10/11. $ 0.2 $ 0.1 $ 0.2 $ 0.4 $ 0.6 $ 0.9 $ 2.1 4/10 4/10 Board passed initiative. 185

188 19 Freeze ATU Employee Salaries for 18 Months: Match salary freeze for Coalition and Non- Represented staff. Annual Deficit Impact 1-YR FY 10/11 FINANCIAL PLAN STATUS REPORT (Cumulative $ in millions) Estimated Forecast 2-YR FY 10/11-11/12 3-YR FY 10/11-12/13 4-YR FY 10/11-13/14 5-YR FY 10/11-14/15 Projected 10-YR FY10/11 - FY 19/20 $ 0.8 $ 0.8 $ 1.7 $ 2.6 $ 3.6 $ 4.6 $ 10.0 Target First Board Action Full Implement Target Status of Project to Date 20 Winter Holiday Furloughs for Administrative & Operational Staff, as Possible: Reduce functions between Christmas and New Year's. TBD $ - $ - $ - $ - $ - $ - OTHER 21 Negotiate Lower Rent for New SF Bus Lot: New lot becomes available FY 11/12. $ $ 0.7 $ 1.4 $ 2.1 $ 2.8 $ /09 3/10 Board signed lease with Caltrans. Savings not expected until move in Implement Expanded Bridge Concession Opportunities: Implement concessions that expand possibilities for the visitor experience at the Bridge. $ $ 9.0 $ 18.0 $ 63.3 RFQ No B-6 issued November 24, 2009, and withdrawn. Design of alternatives underway. 23 Carpool Toll - Charge 50% of Cash Toll: Under consideration on State Bridges. $ 1.2 $ 1.2 $ 2.4 $ 3.6 $ 4.8 $ 6.0 $ /10 7/10 Public Hearings in 5/10, Board approved in 5/10. SUBTOTAL PHASE I $ 26.2 $ 9.8 $ 23.1 $ 41.1 $ 68.9 $ 97.1 $ PHASE II 24 Negotiate Increased Cost Sharing for Health Benefit Plans for All Covered Individuals: Goal is $800,000/yr through changes (i.e, cafeteria, 2- tier, dependent, etc.) $ $ 0.8 $ 1.7 $ 2.5 $ 7.3 Staff work underway. 186

189 25 Renew Transit Fare Increase Plan: Annual 5% Fare Increases for Bus and Ferry Transit Fares:New plan would begin FY 11/12, once current plan expires. Annual Deficit Impact 1-YR FY 10/11 FINANCIAL PLAN STATUS REPORT (Cumulative $ in millions) Estimated Forecast 2-YR FY 10/11-11/12 3-YR FY 10/11-12/13 4-YR FY 10/11-13/14 5-YR FY 10/11-14/15 Projected 10-YR FY10/11 - FY 19/20 Target First Board Action Full Implement Target Status of Project to Date $ $ 0.5 $ 1.0 $ 1.6 $ 2.1 $ 5.4 1/11 7/11 Analysis to begin in Fall of Reduce Paratransit Services to More Stringently Comply with ADA Requirements: Consider reducing scale of paratransit to match ADA requirements only. TBD - $ - $ - $ - $ - $ - TBD TBD 27 Investigate Elimination of Comp Time for Tier II Exempt Employees: Would affect approximately 50 FTEs TBD - - $ - $ - $ - $ - SUBTOTAL PHASE II $ 1.3 $ - $ 0.5 $ 1.8 $ 3.2 $ 4.7 $ 12.7 PHASE III 28 Toll Increase to Occur 5 Years After Last Increase: Assumes a $1 toll increase in July $ $ 18.0 $ 36.0 $ Analysis on need would begin in late Annual Small Increment Toll Increase Program: Begin annual indexing of tolls in FY 2014/15 to match proposed 5% transit fare percentage increases. $ $ 6.0 $ Analysis on feasibility would begin in

190 30 Implement Some Form of Partnership Program: Develop partnership program that would involve all District operations. Annual Deficit Impact 1-YR FY 10/11 FINANCIAL PLAN STATUS REPORT (Cumulative $ in millions) Estimated Forecast 2-YR FY 10/11-11/12 3-YR FY 10/11-12/13 4-YR FY 10/11-13/14 5-YR FY 10/11-14/15 Projected 10-YR FY10/11 - FY 19/20 $ $ 1.0 $ 2.0 $ 3.0 $ 8.0 Target First Board Action Full Implement Target Status of Project to Date 31 Implement Sidewalk Access Fees: Charge fees for pedestrians and bicycles on the Bridge once seismic projects impacting the sidewalks are done TBD - $ - $ - $ - $ - $ - 32 Close Satellite Bus Yard: Close one of the North Bay Bus facilities (Novato or Santa Rosa) TBD $ - $ - 33 Restructure Security Program: Develop a coordinated partnership approach that reduces yearly operating costs. TBD - $ - $ - $ - $ - $ - SUBTOTAL PHASE III $ 19.6 $ - $ - $ 1.0 $ 20.0 $ 45.0 $

191 Agenda Item No. 5 To: From: Subject: Finance-Auditing Committee/Committee of the Whole Meeting of September 24, 2009 Joseph M. Wire, Auditor-Controller Celia G. Kupersmith, General Manager RECEIVE THE UPDATED FIVE- AND TEN-YEAR FINANCIAL PROJECTION Recommendation The following report is provided for informational purposes and does not require any action. Introduction This report contains the financial projection for the ten-year period from FY 10/11 through FY 19/20. The report is broken up into five sections; and the Appendices; I. Introduction II. Fiscal Strength of the District III. Projection Findings IV. Assumptions V. Next Steps A. Projection B. Assumptions C. Ten-Year Capital Plan Projection D. Capital Contribution Calculation E. Reserve Structure 189