AD HOC Committee for Transit To Start Immediately After Management and Finance Committee

Transcription

1 SAN JOAQUIN COUNCIL OF GOVERNMENTS MANAGEMENT AND FINANCE COMMITTEE ERNIE S FOOD & SPIRITS 1351 N. Main Street, Manteca, CA HOSTED BY: CITY OF TRACY Wednesday, February 15, 2017 Noon The San Joaquin Council of Governments is in compliance with the American with Disabilities Act and will make all reasonable accommodations for the disabled to participate in employment, programs and facilities. Persons requiring assistance or auxiliary aid in order to participate should contact Rebecca Calija at (209) at least 24 hours prior to the meeting. 1. Call to Order and Self Introductions 2. Public Comments A G E N D A 3. Approve Minutes of January 18, 2017 Action 4. FY 2017/18 Local Transportation Fund Estimate and Apportionment Action Schedule Measure K Strategic Plan Policies Action 6. Draft FY Overall Work Program (OWP) Action 7. Commute Connection Enhanced Program Launch Presentation 8. Executive Director s Report 9. Other Matters of Business 10. Adjourn to AD HOC Committee for Transit Meeting. AD HOC Committee for Transit To Start Immediately After Management and Finance Committee A. Direction for Utilizing the Interagency Transit Committee for Carrying Direction/Motion Out recommendations from the AD HOC Committee B. Identify Areas to Include in Agreements Between Jurisdictions and RTD and RRC (No Staff Report)

2 Adjourn to next regular scheduled meeting of Management and Finance Committee Wednesday, March 15, Chair: Gregg Showerman City of Manteca Vice Chair: Monica Nino San Joaquin County

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4 SAN JOAQUIN COUNCIL OF GOVERNMENTS MANAGEMENT AND FINANCE COMMITTEE Meeting held at Ernie s Food & Spirits 1351 N. Main Street, Manteca, CA January 18, 2017 M I N U T E S 1. The meeting was called to order at 12:05 p.m. by Chair Suzanne Mallory. Attendance and Self Introductions: Kris Balaji, San Joaquin County Public Works Director; Donna DeMartino, SJRRC General Manager/CEO; Stephanie Garrabrant-Sierra, Tracy Assistant City Manager; Suzanne Mallory, Manteca Finance Director; Steve Schwabauer, Lodi City Manager; Steve Salvatore, Lathrop City Manager; Kevin Werner, Ripon City Administrator; Andrew Chesley, SJCOG Executive Director; Steve Dial, SJCOG Executive Deputy Director/CFO; Diane Nguyen, SJCOG Deputy Director; Rob Cunningham, SJCOG Senior Regional Planner;, Travis Yokoyama, Assistant Regional Planner; Rosie Gutierrez, SJCOG Office Administrator. Other Attendees: None. Committee Members Not Present: Tammy Alcantor, Escalon City Manager; Troy Brown, Tracy City Manager; Stacey Mortensen, SJRRC Executive Director; Kurt Wilson, Stockton City Manager. 2. Public Comment: None. 3. Approve Minutes of November 16, 2016: It was moved/seconded (Werner/Garrabrant-Sierra) to approve the minutes of November 16, Motion passed unanimously (7/0) by voice vote. 4. FY 2017/18 Local Transportation Fund Update: Steve Dial stated this is an information item. Mr. Dial stated the revenue estimate staff is proposing for FY is 4% higher than what is anticipated for revenue. The staff report identifies some of the assumptions that staff would propose to the apportionment process. Mr. Dial discussed the two key factors in the proposal that involved SJRRC, SJRTD and the SJ County. Mr. Dial also stated the recommendation is to increase TDA administration by $25,000 to $290,000 to reimburse the planning function for legal expenses incurred this past year. Mr. Dial reviewed Table 1 and 2 for the working revenue estimate and apportionments for FY Mr. Dial stated the table on the bottom of page 4 compares the FY project apportionments to FY with both being calculated using the January 2015 Department of Finance s Report E-1. The Revenue Estimate and Apportionment schedule will go to Board for approval in February. This item was for information only; no action was taken.

5 5. FY 2016/17 State Transit Assistance Revised Estimated Revenue & Apportionment Schedule: Steve Dial stated this is an action item to recommend the Board adopt the FY revised STA estimated revenue and apportionment schedule. Mr. Dial gave a brief background on this item stating staff suggested the funds be held pending review by the RSTP Ad Hoc Committee to talk about a new apportionment process for the regional funds. The attached tables detail the FY STA revenue estimate and apportionments. Diane Nguyen stated there was a consensus to have the Ad Hoc Committee meet immediately following the M&F meeting. The Ad Hoc Committee will meet next month February 15 th. Andrew Chesley stated one of the challenges is, if the revenue continues to decrease it will put a lot of pressure on the transit providers. It was moved/seconded (Schwabauer/Garrabrant-Sierra) recommend to the Board adopting the FY revised STA estimated revenue and apportionment schedule. Motion passed unanimously (7/0) by voice vote Measure K Ordinance and Expenditure Plan Amendment Process: Diane Nguyen stated this is an annual process and is a solicitation request from member agencies or members of the public to propose amendments to the MK Ordinance and/or MK Expenditure Plan. Within the ordinance it identifies the annual process which identifies SJCOG as the Transportation Authority to solicit requests to amend the MK Ordinance and/or Expenditure Plan. Staff is asking for interested parties to submit their requests in writing to SJCOG by March 31, Ms. Nguyen discussed the schedule and stated the developed recommendations will go to committees and Board in April 2017 for consideration. In June the Board will hold a public hearing on the proposed amendments, if approved, next step would be a 45-day appeals process if a local jurisdiction does not agree with the amendments. This item was for information only, no action was taken. 7. Regional Transportation Impact Fee (RTIF) Program Reallocation of Regional Share Transit Funds: Rob Cunningham discussed the background of this item stating RTIF collected by participating agencies, 15% is distributed to SJCOG to manage and program RTIF eligible projects. Of the 15%, 10% goes to increase capacity on highway, interchange, or regional roadways and the remaining %5 goes to transit projects. The recommended action is to approve the reallocation of $173,410 of RTIF Transit Funds from the Cabral Station Park & Ride Lot expansion to East Channel Street improvements. This will improve pedestrian connectivity and access between SJRRC s Cabral Station and the SJRTD s Downtown Transit Center, plus improving regional transit service access and ridership. This project is a specific transportation improvement that will be undertaken as part of Phase I.

6 It was moved/seconded (DeMartino/Salvatore) to recommend the SJCOG Board approve the reallocation of $173,410 of RTIF Transit Funds from the Cabral Station Park & Ride Lot Expansion to East Channel Street Improvements. Motion passed unanimously (7/0) by voice vote Active Transportation Program (ATP) Funding Recommendations for FY 2019/20 and 2020/2021: Diane Nguyen stated this is the third cycle for the Active Transportation Program (ATP). Ms. Nguyen stated SJCOG has completed the Active Transportation Program (ATP) project selection process for the two-year period with $2.1 million available in ATP funds. Ms. Nguyen reviewed the list of nine projects applications in attachment A that were received from member agencies within this region and there was a review committee that reconvened and the membership of that committee is within the staff report. This Multidisciplinary Committee was established, per state guidelines. Ms. Nguyen stated in Table 1 of the staff report are the six of the nine projects in rank order that the Scoring Committee recommended for the $2.1 million ATP funds. Ms. Nguyen stated part two of the recommendation is to include a Contingency Project list to be amended into the program in the event a programmed project is delivered for less or fails to secure an allocation or time extension. Kris Balaji asked should City of Stockton fail to secure an allocation would they have to use other resources for funding. Ms. Nguyen said yes they would have to commit to get their own funds for construction in order to finance construction. It was moved/seconded (Schwabauer/Balaji) to recommend that the SJCOG Board approve the Scoring Committee s 2017 ATP Cycle 3 funding recommendation for Fiscal Years 2019/20 and 2020/21, as identified in Table 1. Included in the funding recommendation is also a contingency list of three projects in the event of cost savings or failure to deliver a project from the recommended list. Motion passed unanimously (7/0) by voice vote. 9. Executive Director s Report Andrew Chesley announced staff has received the new assignments for SJCOG Board. City of Tracy appointed Mayor Rickman and Councilmember Young as the alternate. City of Stockton appointed Mayor Tubbs and Councilmember Wright as the alternate. Supervisor Elliott will fill the vacant position from the Board of Supervisors. Mr. Chesley reported there are two vacancies on the San Joaquin Regional Rail Commission that the SJCOG Board will appoint. The chairman will make a recommendation to the Executive Committee then the full Board will vote on it. Mr. Chesley stated San Joaquin Business Council approached staff regarding Grupe and stated they will be reaching out into the community for ideas out of the Stockton area. Mr. Chesley reported on the Department of Transportation new regulations regarding MPO boundaries and stated staff is looking to get a change in this particular situation.

7 Mr. Chesley stated on this month s COG Board agenda and the Executive Committee agenda there will be a request from SJRTD for change in the COG Board voting membership to include a voting member from the SJRTD. The request was submitted in October and the Board indicated they would be responding in January. SJCOG s Legal Counsel will provide a staff report to address this request and he explained the two options going to the Board to ask for some direction. Donna DeMartino explained that Legislation, MAP-21 and the FAST Act brought this to RTD s attention to pursue, and that is why RTD is pursuing this. Mr. Chesley announced SJCOG adopted a paperless policy and stated the COG Board members will be issued an ipad along with some training on the Granicus software to use during the Board meetings. Mr. Chesley stated staff reached out to member agencies for information with this process and he thanked the members for the information their jurisdictions provided. Mr. Chesley introduced COG staff Rob Cunningham, Senior Regional Planner and Travis Yokoyama, Assistant Regional Planner stating staff is fortunate to have them with the agency. 10. Other Matters of Business: None. 11. Adjournment There being no further business to discuss, the meeting was adjourned at 12:55 p.m. to Wednesday, February 15, 2017.

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9 February 2017 M&F Committee STAFF REPORT SUBJECT: RECOMMENDED ACTION: FY Local Transportation Fund Estimate & Apportionment Schedule Recommend to the Board Adopting the FY Estimated LTF Revenue & Apportionment Schedule SUMMARY: BACKGROUND The Local Transportation Fund (LTF) is an important source of transit, roads and streets funding in San Joaquin County. Revenues to the LTF are derived from 1/4 cent of the 7 1/4 cents retail sales tax collected statewide. The 1/4 cent is returned by the State Board of Equalization to each county according to the amount of tax collected in that county. In San Joaquin County, SJCOG administers the LTF. Before the start of each fiscal year, the SJCOG Board must adopt a total LTF revenue estimate. LTF REVENUE ESTIMATE SJCOG staff recommends the Board adopt, as its official LTF revenue estimate for Fiscal Year , the sum of $29,463,200. JUSTIFICATION In June, SJCOG staff indicated LTF revenue for FY 15/16 would be higher than the original estimate. In fact, the actual was $1,273,978, or 5% higher. These funds would be available to all claimants as either amendments to FY claims or captured in FY claims. Because this action was at the end of the FY 15-16, the assumption was the excess would be claimed in FY In February, 2016, the Board adopted a revenue estimate of $27,689,000. Combining the additional funds from FY with the approved FY revenue estimate, nearly $29 million was available. The additional funds from FY resulted in all claimants receiving more in FY16-17, even with the $900,000 increase to SJRRC. Six months into FY 16-17, LTF revenues are being received at a higher level than anticipated. If this trend continues, the actual revenue received for FY will be $28,330,000, 2.31% higher than last February s adopted revenue estimate of $27,689,000. The $29,463,200 estimate reflects this trend.

10 FISCAL IMPACT Adopting the $29,463,200 revenue estimate will provide local agencies with a prudent number from which to budget the coming fiscal year's transportation programs. In the event revenues are higher than this estimate, local agencies will be able to claim the difference later in the next fiscal year as previously unclaimed funds. Conversely, if LTF revenue does not reach the estimate, claimants will not receive those funds nor will they be available in the future. LOCAL TRANSPORTATION FUND APPORTIONMENTS Once the revenue estimate is adopted, the LTF apportionments follow according to procedures specified in the Transportation Development Act. The funds are to be allocated for the designated purpose in the sequence stated in the TDA. Pursuant to TDA statute , there shall be allocated to the county and the transportationplanning agency such sums are necessary to administer this chapter. The TDA administrative expenses of the County Auditor and SJCOG must be broken out. Pursuant to statute, the County Auditor-Controller maintains the TDA Trust Fund and writes the payment checks. SJCOG controls and administers TDA funds, and acts as the policy making body on TDA issues. The San Joaquin County Auditor has notified SJCOG that the office's expenses will be $2,000, the same as last year. SJCOG is requesting $290,000 to administer TDA funds, this amount is slightly higher than previous years to reimburse the planning function for legal expenses incurred the past fiscal year due to discussions regarding the LTF revenue apportionments. In addition, this amount funds the external independent auditor s work and SJCOG staff expenses. Pursuant to TDA statute , the planning agency receives funding for planning and programming activities in the fiscal year. SJCOG policy is to apportion 3% of estimated revenues for transportation planning; this amount is being reduced to approximately 2.88% to alleviate the impact on the four claimants receiving less funds for Article 4 and/or 8. The amount allocated to COG for planning will be $845,540. The transportation planning funds are for SJCOG to use as a match for approximately $4,000,000 in federal and state funds as well as undertaking projects lacking outside funding. LTF is the source of all SJCOGs participation in the various Valley wide activities and initiatives. Pursuant to TDA statute , 2% of the total funds remaining (after the TDA administrative and planning expenses are deducted) are allocated for bicycle/pedestrian projects. That equates to $566,453 for bicycle/pedestrian projects. If a community determines that these funds are better used to meet other transportation needs, then it may pass a resolution to that effect. The SJCOG Board then may allocate these funds for that purpose. Pursuant to Section , the San Joaquin Regional Rail Commission (RRC) can claim for service operations and capital improvements. By law, these funds are taken off the top prior to apportioning the remaining funds to other claimants.

11 SJRRC has requested an increase in the amount allocated to the commission for FY The Rail will receive $3,100,000. Pursuant to Section 99231, the total remaining funds, $24,656,207 are available for general transportation purposes and apportioned to claimants based upon population. Actual Local Transportation Funds received will be more or less than the apportionment depending on whether total revenues received are more or less than anticipated. The specific apportionments for each claimant are shown in the attached Table 2. By statute, the San Joaquin Regional Transit District (SJRTD) is the primary claimant for TDA funds within the SJRTD boundaries. Since the City of Stockton is completely within the SJRTD boundaries, it (Stockton) has no population estimate for general transportation purposes. Since a portion of the Stockton Metropolitan Area is unincorporated and that population lives within the SJRTD boundaries, the Transit District's population estimate includes them as well. At the bottom of Table 2, the composition of SJRTD's apportionment is detailed. In November, 2016, the SJCOG Board adopted the Regional Transit Systems Plan. Two key recommendations from the RSTP were to create an Ad Hoc committee of the Management & Finance Committee to discuss policy issues unresolved in this update of the RTSP, and for the County of San Joaquin and San Joaquin Regional Transit (SJRTD) to review their contract currently dividing the County s LTF apportionment 76% / 24%. SJCOG staff has received verbal notification San Joaquin County and SJRTD have agreed that SJRTD will claim all of the County s unincorporated population (in addition to all of the City of Stockton). Stockton and the County, however, receive their population-based apportionment of the 2% bicycle/pedestrian funds. COMMITTEE RECOMDATIONS TAC recommended adoption of the FY Revenue Estimate and Apportionment Schedule by a unanimous vote.

12 TABLE 1 LOCAL TRANSPORTATION FUND REVENUE ESTIMATE AND APPORTIONMENT FISCAL YEAR: ESTIMATED REVENUE FY $ 29,463,200 I. LESS ADMINISTRATIVE ALLOCATIONS RECOMMENDATIONS COUNTY AUDITOR* 2,000 COG TDA ADMINISTRATION* 290,000 A. COG TRANSPORTATION PLANNING 2.88% PLANNING APPORTIONMENT** 848,540 28,322,660 B. COUNTY AND CITIES 2% BICYCLE/PEDESTRIAN** 566,453 APPORTIONMENT C. SAN JOAQUIN REGIONAL RAIL COMMISSION * 3,100,000 II. BALANCE AVAILABLE FOR BY AREA APPORTIONMENT ARTICLE 4 AND ARTICLE 8 PURPOSES** 24,656,207 *Upon adoption by the COG Board, these amounts are fixed and will be apportioned "off the top". **These amounts will vary with actual revenues received. See Table 2 for breakdown of 2% bicycle/pedestrian funds and general purpose revenues.

13 TABLE 2 LOCAL TRANSPORTATION FUND AREA APPORTIONMENT FISCAL YEAR: POPULATION BIKE/PED ARTICLE SJCOG TOTAL CLAIMANTS ESTIMATE* % APPT. 4 OR 8 PLANNING APPT. SAN JOAQUIN REGIONAL TRANSIT DISTRICT 463, ,573, ,090 15,573,173 LATHROP 22, , ,402 22, ,480 LODI 63, ,829 2,125,412 64,976 2,174,241 MANTECA 73, ,034 2,482,521 75,894 2,539,555 TRACY 89, ,903 2,999,157 91,688 3,068,060 RIPON 14, , ,018 15, ,391 ESCALON 7, , ,524 7, ,981 UNINCORPORATED** , ,021 SAN JOAQUIN REG. RAIL COMM ,100,000 94,771 3,100,000 STOCKTON , ,758 COUNCIL OF GOVT'S ,540 TRANSPORTATION PLANNING TOTAL 733, ,453 27,756, ,540 28,322,660 SAN JOAQUIN RTD POP. PCT. CITY OF STOCKTON 315, CO. OF SAN JOAQUIN 147, CO. OF SAN JOAQUIN - CAT TOTAL 463, *State Department of Finance population estimates (January, 2016). **Unincorporated population not used in SJRTD calculation Total Unincorporated population (used to determine bike/ped apportionment) = 147,622

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15 February 2017 Management & Finance STAFF REPORT SUBJECT: RECOMMENDED ACTION: 2017 Measure K Strategic Plan Policies Recommend that the SJCOG Board approve the Policies and Underlying Assumptions as shown in Table 1 for the Draft Measure K Strategic Plan SUMMARY: The San Joaquin Council of Governments (SJCOG) is the administrator of the Measure K half-cent sales tax program. Due to the decrease in revenue from the recession, not all Measure K projects identified in the Expenditure Plan can be funded in the 30-year life of the sales tax program. The region will need to delve into difficult policy decisions and make hard choices on what Measure K projects can be funded. This means Measure K expenditures, project priorities, and policies will be re-examined and possibly new policies developed to create a financially constrained plan that balances project delivery within funding limitations. Throughout March and April of 2016, SJCOG staff met with all local agencies and transit operators to discuss the implications of the Measure K financial picture and how to prioritize projects. Through the summer, SJCOG staff worked with project sponsors to finalize the scope, cost, and schedule of all Measure K projects. In September 2016, SJCOG staff received updated projections of Measure K revenue from SJCOG s financial consultant, Public Financial Management (PFM), projected to total Figure 1: Measure K Categorical Allocations $2.6 billion through FY 2040/41 as shown in Figure 1, a decrease of $300,000,000 from the previously (2011) adopted revenue estimate. The SJCOG Board adopted this updated revenue forecast in October In November, PFM completed a cash flow analysis of the Measure K Capital Program based upon existing and future anticipated debt service and revenue. The cash flow analysis indicated that only approximately $49.9 million would be available to program new projects between Fiscal Year 2016/17 and Fiscal Year 2030/31.

16 SJCOG developed a preliminary Strategic Plan programming scenario based upon this cash flow analysis and several underlying policies and assumptions. In January the Technical Advisory Committee, Citizens Advisory Committee, and combined Social Services Transportation Advisory Committee/Interagency Transit Committee all reviewed this scenario. The committees were overall supportive of the proposed programming scenario and underlying policies as reflected in Table 1. Table 1: Policies and Underlying Assumptions for the development of the Draft 2017 Measure K Strategic Plan Measure K Category State Highway Regional Arterial Railroad Grade Crossing Safety Local Street Repair and Roadway Safety Rail Transit Bus Transit Bicycle, Pedestrian & Safe Routes to School Smart Growth Incentive Program Measure K Strategic Plan Policies and Underlying Assumptions Work under the guiding principle that the 2017 MKSP will focus on regional needs due to the successful delivery of the State Highway projects in the Early Action Program Direct any cost savings from the Early Action Program State Highway projects to the SR 99/120 Connector Project, followed by the I-205 Widening, I-5 Mossdale Wye, and SR 120 Widening Continue existing policy of no new projects until FY 2021/22 Prioritize funding for projects based upon the following criteria: consistency with the 2014 RTP/SCS, regional significance, project readiness, leveraging of other funds, projects with multimodal features, and funding for areas that did not have Early Action Program projects Keep existing policy of 10% subcategory reserve ($6.29 million) - Remaining four projects each receive $7.16 million after 2030/31 Keep existing distribution policy - 50% County, 50% cities by split by population Reduce contingency reserve from 10% of funds to 5% Due to revenue shortfalls, restrict funding to only commitments for existing operations, UPRR contractual obligations, Positive Train Control federal mandate, debt service payments, and capital spare parts - Cash flow available for small increase in funds for new service in FY 25/26 Reduce contingency reserve from 10% of funds to 5% Keep an un-programmed fund balance (approx. $32M) in the draft Plan for future transit needs and resolution of LTF, state, and federal transit funding policies being examined by SJCOG Ad Hoc Transit Committee for SJCOG Board consideration Begin funding at $1.1 million in FY 16/17, and escalate gradually at MK growth rate of 4.5% annually to avoid larger impacts to other programs in later years Call for Projects for five years of funds (FY 16/17 through FY 20/21) in 2017 Begin funding at $1.4 million in FY 16/17, and escalate gradually at MK Growth rate of 4.5% annually to avoid larger impacts to other programs in later years Call for Projects for five years of funds (FY 16/17 through FY 20/21) in 2017

17 RECOMMENDATION: SJCOG staff recommends the Management and Finance Committee recommend the SJCOG Board approve the policies and underlying assumptions for the Measure K Strategic Plan programming scenario in Table 1. Upon approval by the SJCOG Board, the Draft Measure K Strategic Plan will use these policies and underlying assumptions, and would anticipate release at the end of February FISCAL IMPACT: None at this time. There will be direct fiscal impacts from the adoption of the Measure K Strategic Plan which will set forward Measure K allocations for eligible projects through Fiscal Year 2030/31. DISCUSSION: Preliminary Programming Assessment for 2016 Measure K Strategic Plan Throughout 2016, SJCOG staff worked with project sponsors to finalize the scope, cost, and schedule of all Measure K projects. Using the information provided and based upon the updated Measure K revenue estimate, SJCOG staff prepared a preliminary programming scenario for the Measure K Strategic Plan as summarized below. Congestion Relief Category State Highway Subcategory: In December 2016 the SJCOG Board approved awarding approximately $1 million in contracts to start Project Study Reports for the widening s of I-205, I-5 Mossdale Wye, and SR 120. All other anticipated funds in this category during this period were advanced for the Early Action Program projects. SJCOG staff recommend that any cost savings from the Early Action Program projects be prioritized for the SR 99/120 Connector project, followed by the I-205, I-5 Mossdale Wye, and SR 120 projects. SJCOG staff anticipate that the cost savings will be in the order of $10 to $15 million. Regional Arterial Subcategory: Using the updated revenue estimate, SJCOG determined the Population Share of the Regional Arterial subcategory for each city and the County through FY 30/31. After subtracting the projects already committed funding through the Early Action Program, SJCOG staff compared the available population shares to the lists of projects requested by each sponsor. SJCOG staff fiscally constrained the requested Measure K amounts to the $49.9 million available as stated in the cash flow analysis by adjusting the programming amounts and year of programming as needed. In some cases, it was necessary to delay projects by several years or significantly reduce the Measure K funding for a project due to lack of funds. In addition, SJCOG staff maintained the SJCOG Board s existing policy of not programming any new projects until FY 2021/22. Projects were prioritized based upon several criteria:

18 o Consistency with the 2014 Regional Transportation Plan o Regional significance o Project readiness o Leveraging of outside federal/state/local funds o Projects that incorporate multimodal features (transit/bicycle/pedestrian) o Providing funding for areas that did not benefit from the Early Action Program Using these criteria, SJCOG staff recommend that these thirteen projects receive $49.9 million of Regional Arterial funding between Fiscal Year 2021/22 and Fiscal Year 2030/31: o Ullrey Avenue/McHenry Avenue Intersection Improvements Escalon - $160,000 o I-5/Louise Avenue Interchange Improvements Lathrop - $3,600,000 o Harney Lane Widening Lodi - $3,750,000 o Harney Lane/SR 99 Interchange Lodi - $2,650,000 o Louise Avenue Improvements Manteca - $1,522,000 o SR 120/Airport Way Interchange Improvements Manteca - $10,220,000 o Stockton Avenue Widening Ripon - $1,548,000 o SR 99/Wilma Avenue/UPRR Interchange Improvement Ripon - $1,335,000 o Pacific Avenue Widening Stockton - $3,400,000 o Airport Way Intersection Improvements Stockton - $6,336,000 o I-205/Lammers Road Interchange Tracy - $2,600,000 o Eleventh Street Improvements San Joaquin County - $5,708,000 o Grant Line Road Corridor Improvements San Joaquin County - $6,000,000 It should be noted that Measure K would not fully fund most of these projects. Project sponsors will need to leverage Measure K to match Federal, State, and local funds to ensure project delivery. Failure to secure full funding and maintain a timely project delivery schedule may lead to other projects receiving a higher priority for Measure K funding.

19 Railroad Grade Crossing Category All available funding from this category through FY 2030/31 was advanced for the North Stockton Grade Separations and the Lathrop Road Grade Separation as part of the Early Action Program. The remaining four projects in this category will be programmed after FY 2030/31 as funding is accumulated. SJCOG staff recommend maintaining the existing SJCOG Board policy of keeping 10% of the category ($6.29 million) reserved as a contingency to potentially add another project in the future. As result, each of the four remaining projects will receive $7.16 million in funding on a pay as you go basis. Local Street Repair and Roadway Safety Category $383 million is anticipated to be available in this category over the next 15 years. Under the existing policy, 50% of the funds are distributed to San Joaquin County, with the remaining 50% going to the cities based on their population share. SJCOG staff proposes no changes in distributing funding from the Local Street Repair and Roadway Safety Category at this time. Passenger Rail, Bus, and Bicycles Passenger Rail Transit Subcategory: SJCOG staff recommend that the contingency reserve in this category be reduced from 10% to 5% to allow more funding for SJRRC s operations. Measure K funding from this category will be used for SJRRC s existing operational needs, UPRR capital access fee payments and capitalized maintenance projects, implementation of Positive Train Control, and capital spare parts. Bus Transit Subcategory: SJCOG staff recommend that the contingency reserve in this category be reduced from 10% to 5% to allow more funding for bus operations. Funding in this subcategory largely remains status-quo. SJCOG staff maintained funding for SJRTD s existing commitments in the Strategic Plan at similar to historic levels, with incremental increases beyond Fiscal Year 2024/2025 to account for cost increases and growth. The City of Lodi will resume receiving Measure K funding starting in FY 2017/18 at a set amount of $400,000 annually. Funding for the City of Escalon s etrans service and the City of Ripon s Blossom Express service continues based on their population shares of the Measure K Bus Transit subcategory. Additional Measure K revenues from the City of Ripon s population share of the Bus Transit subcategory will fund their future transit capital projects. A significant balance of funding of over $32 million exists in the Bus Transit Subcategory by the end of Fiscal Year 2030/31. These funds were not accounted for by the transit operators in their funding plans as adopted through the Regional Transit Systems Plan. Per the Measure K Ordinance and Expenditure Plan, a minimum of 50% of the funds are available to SJRTD while the remainder is eligible for any operator. SJCOG staff propose this balance be set aside for future transit needs and resolution of LTF, state, and federal transit funding policies being examined by the Management & Finance Ad Hoc Transit Committee for SJCOG Board consideration.

20 SJCOG staff are working with SJRTD staff to examine the current recommended programming of the Bus Transit subcategory for any necessary adjustments, and are working to restructure SJRTD s debt service for their Regional Transportation Center maintenance facility to reduce interest costs for SJRTD. Bus Rapid Transit Subcategory: Future funding in this subcategory is staggered on a pay as you go basis, with $2.7 million available between FY 18/19 and FY 20/21, $4.5 million available between FY 23/24 and FY 25/26, and $6 million available between FY 28/29 and FY 30/31. Bicycles, Pedestrians, and Safe Routes to School Subcategory: Approximately $24.4 million is anticipated to be available in this category through FY 2030/31, split between a Non-Competitive Program (40%) and Competitive Program (60%). SJCOG staff recommends starting these funds gradually and increasing them at the 4.5% Measure K growth rate. o The Non-Competitive Program funds are allocated to the local jurisdictions according to their population share using the latest Census data. $2,567,000 will be available between Fiscal Year 2016/17 and Fiscal Year 2020/21. SJCOG staff anticipates these funds will become available for claims in o The Competitive Program funds are awarded subject to a competitive process and award by the SJCOG Board. SJCOG anticipates approximately $3,850,000 will be available over a five-year period from Fiscal Year 2016/17 through Fiscal Year 20/21. SJCOG staff anticipate a Call for Projects for these funds in Subsequent Calls for Projects will be two year cycles in coordination with the timing of future Active Transportation Program (ATP) cycles. Smart Growth Incentive Program The Smart Growth Incentive Program is anticipated to receive approximately $31 million between Fiscal Year 2016/17 and Fiscal Year 2030/31. SJCOG staff recommends starting these funds gradually and increasing them at the 4.5% Measure K growth rate. SJCOG anticipates having a Call for Projects in 2017 for the first five years of funding, approximately $7.78 million. BACKGROUND: Measure K is the half-cent sales tax dedicated to transportation projects in San Joaquin County. With its original passage in November 1990, Measure K laid the groundwork for funding for a system of improved highways and local streets, new passenger rail service, regional and interregional bus routes, new bicycle facilities, and railroad crossings. Its innovative multimodal approach to transportation distinguishes Measure K from other transportation sales taxes.

21 Measure K Renewal: On November 7, 2006 San Joaquin County voters extended Measure K for an additional 30 years. The renewal of Measure K was initially estimated to generate ~$2.9 billion, but current estimates are at $2.6 billion, representing a $300 million decrease equally across all Measure K categories. The categorical allocations of Measure K Renewal (referred simply as Measure K) include Local Street Repairs and roadway Safety (35%), Congestion Relief projects (32.5%), Railroad Crossing Safety Projects (2.5%), and Passenger Rail, Bus, and Bicycles (30%), which includes subcategories for Rail Transit, Bus Transit, Bus Rapid Transit, and Bicycle, Pedestrian, and Safe Routes to Schools improvements. Measure K Strategic Plan: The Measure K Strategic Plan serves as the guiding document for delivery of the Measure K (Renewal) projects and programs. The Strategic Plan functions as a capital improvement program (CIP) for Measure K. Its financial plan describes the long-term revenue forecast, capital funding requirements, borrowing needs and the associated debt service costs of the program. The current version of the Plan, the 2013 Measure K Strategic Plan, provides a ten-year outlook of Measure K projects through year 2021 covers the Early Action Program of projects previously approved by the SJCOG Board, many of which have been already completed or are nearing completion. Table 2: Measure K Renewal Early Action Program ( ) Project Sponsor MKR Completion Amount* Date I 205 Auxiliary Lanes SJCOG/Caltrans $10,975,999 Spring 2013 McHenry Avenue Widening Escalon $2,237,807 Summer 2013 North Stockton Grade Separations (3) Stockton $22,200,900 Winter 2013 Arch Sperry Expressway Stockton $6,230,000 Winter 2013 ACE Rail Maintenance Facility SJRRC $1,491,690 Spring 2014 I 5 / French Camp Interchange Stockton $30,350,000 Fall 2014 SR 99 Manteca Widening SJCOG/Caltrans $52,977,436 Summer 2015 Lathrop Road Grade Separation Lathrop $10,855,000 Fall 2015 SJRTD Regional Transportation Center SJRTD $15,750,000 Fall 2015 I 5 HOV Widening SJCOG/Caltrans $44,404,969 Fall 2016 SR 99 South Stockton Widening SJCOG/Caltrans $77,759,000 Fall 2016 SR 4 Crosstown Freeway Extension SJCOG/Caltrans $62,945,306 Fall 2016 Harney Lane Grade Separation and Widening Lodi $420,126 Fall 2017 Thornton Road Widening Stockton $14,500,000 Fall 2017 Hammer Lane Widening Phase 3B Stockton $9,500,000 Fall 2017 Corral Hollow Road Widening Tracy $13,000,000 Fall 2019 * Only Measure K Renewal funds reflected. Other Federal/State/Local funding not shown.

22 NEXT STEPS: January to February Receive input on Strategic Plan scenario Late February Draft Strategic Plan released March to April Committee and Board input on Draft Plan May Adopt Final Measure K Strategic Plan Prepared by: David Ripperda, Associate Regional Planner

23 AGENDA ITEM 6

24 February 2017 M&F Committee STAFF REPORT SUBJECT: RECOMMENDED ACTION: Draft Fiscal Year 2017/18 Overall Work Program (OWP) Recommend Board Approval of Draft OWP for Public Release and Review SUMMARY: This staff report summarizes revenue highlights for FY 2017/18 and significant changes proposed for next year s work program. The proposed draft document will be available at RECOMMENDATION: Information only. FISCAL IMPACT: The Draft OWP identifies $8,339, in revenue for SJCOG operations in FY 17/18. This is a reduction of $939, from the fiscal year 2016/17 amended OWP (amendment 1 on the January 2017 agenda). This is a preliminary estimate that undoubtedly will change between the adoption of the draft OWP this month and the adoption of the final OWP in March. BACKGROUND: The Overall Work Program is a management tool identifying the tasks and products that the San Joaquin Council of Governments will undertake to deliver during fiscal year 2017/18. The OWP also identifies the funding sources and staff resources necessary to complete the overall work program. The Overall Work Program is broken down into work elements that are unique to specific subject areas. For example, one work element is dedicated to the preparation and update of the Regional Transportation Plan. Each work element: identifies work previously completed under that work element the purpose of that work element in the subject matter, tasks to be undertaken, a listing of products and the schedule for delivery of those products, the funding sources for each work element, the responsible agency,

25 and the level of effort (staff allocation) required to undertake and deliver those tasks and products. Revenue For this draft, net SJCOG revenues are estimated to decrease by approximately $939, from the amended FY 2016/17 OWP, from $ 9,278, to $ 8,339, or a 10.12% decrease. By the time of the final approval of the OWP, this amount will undoubtedly change. As noted below, several significant work efforts are completed or nearing completion with the funding sources for them having been spent down and revenue associated with funding those work products has decreased. Because some of the work was being undertaken by consultants and other professional services, there is no impact on staffing. Significant revenue sources: Federal Transit Administration MPO Planning funds are reduced by $37,310. Federal Transit Administration Section 5303 funds are reduced by $9,130. The Partnership Planning for Sustainable Transportation project is completed, resulting in a reduction of $154, The Stanislaus Association of Governments and Merced County Association of Governments (MCAG) are expected to once again contract with SJCOG s Commute Connection to operate a Transportation Demand Management program in their respective areas. The draft OWP includes $270,000 of combined CMAQ funds from both agencies. Freeway Service Patrol on I-205 will continue to be fully funded. However, this year s budget contains only the funds needed for the current fiscal year, resulting in a $680, reduction. The Freeway Service Patrol for I-5 and Route 99 projects have discontinued due to construction completion in the prior fiscal year. While the current allocation of STIP for Planning and Program Management is expected to be nearly exhausted, there will be a new allocation for 2017/18 at the same funding level of $200,000. SJCOG continues to receive a return on vehicle registration SAFE (Service Authority for Freeway Emergencies) funds to be used for Freeway Service Patrol match. In the areas of staff augmentation, a portion of the Calaveras COG technical support contract remains available for continued provision of services in FY The staff augmentation contract with City of Manteca, however, is closed out and will not continue in FY Again, the net change between the proposed draft and the adopted FY OWP is a decrease of $939, Overall Work Program Highlights of projects, activities, and/or planning documents at or nearing completion in FY 16/17 OWP period: Continued implementation of the Congestion Management Program. Continued role as and activities related to the Airport Land Use Commission (ALUC).

26 Habitat Plan Implementation. 2016/17 Measure K Renewal Ordinance and Expenditure Plan Amendment Process. Measure K Strategic Plan Update. Federal Transportation Improvement Program. FY 2016/17 Unmet Transit Needs Report. Implementation of the first Three-County Travel Demand Model (covering San Joaquin, Stanislaus, and Merced Counties) and development of MIP2. Regular meetings of the Regional Transportation Plan/Sustainable Communities Strategy Implementation Group and initiation of the Public Participation/Outreach Program for the RTP/SCS. Continue to participate in High Speed/Higher Speed Regional Rail work groups and the Rail Joint Powers Authority. Completion of Annual Reports for Commute Connection, Measure K, Freeway Service Patrol, and Regional Transportation Impact Fee. Participation with Valley Councils of Government (COG s) on interregional modeling, transportation planning, and legislative issues. Representation of SJCOG on California Councils of Governments, Regional Transportation Planning Agencies Group, and Self-Help Coalition. Participation in the SJCOG-SACOG-MTC Mega-Region Group. Completion of amendments to the Federal Transportation Improvement Program and related amendments to the Regional Transportation Plan. Publications of census and research information, in collaboration with the University of the Pacific. Public Participation Plan update. Regional Transit Systems Plan adoption. New fee schedule for the Regional Transportation Impact Fee Facilitation of the new Transit Ad Hoc Committee, a recommendation from the Regional Transit Systems Plan. Updated transit Memorandums of Understandings (MOUs) with transit operators in San Joaquin County, defining roles and responsibilities. Review and monitoring of federal regulations, rules, and legislation including MPO Planning Boundaries and Transit Representation on MPO Boards. Launch of re-branding campaign for Commute Connection. Programmed projects after competitive selection for the Congestion Mitigation and Air Quality Program and the Active Transportation Program. Project Delivery- activities of state highway projects that will continue in Fiscal Year OWP: In December 2016, the COG Board approved three Project Initiation Documents (PIDs) on state highways. Funded with Measure K State Highway dollars, work on these three PIDs will continue through FY 17/18 OWP I-205 HOV Lanes, I-5 Mossdale Wye, and Hwy 120 Widening. Design/engineering work will also continue on the Route 120/99 interchange project.

27 Major New Studies and Products Proposed for Fiscal Year include: The new work products (below) are in addition to on-going programs and services, which will be continued in FY 2017/18 by SJCOG. These include: Commute Connection, Freeway Service Patrol, RTP Continuing Implementation, Transit Planning and Transportation Development Administration and Implementation of the Measure K/R Programs and the One Voice Program. This ongoing work also includes substantial coordination of regional planning, programming and air quality planning with the other seven MPO s in the San Joaquin Valley. Conference with UOP on Census Research and Forecasting. Activity Based Transportation Model. Release of the Draft Regional Transportation Plan/SCS and related Air Quality Conformity and Environmental Impact Report. Regional Surface Transportation Programming Cycle. Review and possible refinement of the Regional Transportation Impact Fee Program Jobs Balancing Investment Fund. Recommendations developed by the Transit Ad Hoc Committee. Draft FY OWP Review Process Upon adoption of the draft, the OWP will then be submitted for review by Caltrans, the Federal Highway Administration and the Federal Transit Administration. SJCOG s member agencies and partners are encouraged to review the draft and submit comments by February 28 th. Comments will be considered in preparing the final FY OWP. Also at the March SJCOG Board meeting, the FY 2017/18 Annual Financial Plan will be presented for adoption. COMMITTEE RECOMDATIONS TAC recommended adoption of the draft OWP by a unanimous vote. Prepared by: Steve Dial, Deputy Executive Director/CFO and Gracie Orosco, Chief Accountant

28 Revenues By Funding Source FISCAL YEAR 2017/18 Draft February 23, 2017 FY FY FY /- Funding Sources Final Amendment #1 Draft $ Change Notes: Annual FHWA PL 1,243, ,243, ,206, (37,310.00) Based on Allocation estimate Annual FTA MPO Planning (Section 5303) 304, , , (9,130.00) Based on Allocation estimate Partnership Planning grant(sjv Goods Movement) 125, , (154,716.50) Grant expired in FY 16/17 StanCOG-CMAQ TDM 195, , , Merced CAG TDM CMAQ 6088(051) 75, , , STIP Planning & Programming 17/18 200, , , Affordable Housing & Sustainable Communities(State) 30, , (29,526.11) Grant expired in FY 16/17 RSTP SR9 and SR120 Ramps : STPL-6088(057) 800, , ,000, , Estimation per Kevin Local Planning Contribution (LTF) (3%) 830, , , , LTF Apportionment Table TDA Administration 265, , , , Per Steve D Local Planning Contribution (LTF ALUC Special Assessment) Local Transportation Authority (Project Management) 1,000, ,000, ,000, Steve Dial Local Transportation Authority (1% Administration) 542, , , , Steve Dial Caltrans-FSP (I-205) (048) 474, , , (274,171.00) Estimated carryover per Kevin Caltrans-FSP (I-205) (053) 506, , , (406,198.00) Only budgeting $100K of the $506,198 grant Caltrans-FSP Construction - 75, (75,000.00) Valley MPOs 172, , , , Per Ryan COG Fees and Services 10, , , RTIF 50, , , (10,000.00) Estimate per Rob C. State Transit Assistance 58, , , Based on STA apportionment table SJCOGI (Habitat) 561, , , Congestion Mitigation/Air Quality ( ) 850, ,207, ,207, Same as last yer, per Yvette SAFE (511 & FSP) 128, , , Same as last yer, per Yvette SACOG TDM(Trip Planning System) 80, , , Same as last yer, per Yvette Calaveras COG: RTPA Technical Support 20, , , (19,021.55) Per Diane Reimbursement on COI for 2011 Bond Refunding - 142, (142,500.00) City of Manteca: SR 99 Project Management Support 50, , (50,000.00) Project complete Interest/Other 20, , , SJCOG Total 8,590, ,278, ,339, (939,327.16) (0.1012) SJRTD FTA SJRTD Planning Funds - SJRTD Match(STA) - Tracy FTA , , , Tracy Planning Funds - Lodi FTA Lodi Planning Funds - SJRRC FTA , , SJRRC Planning Funds - Manteca FTA Manteca Planning Funds - Grand Total 8,690, ,428, ,489, (939,327.16) 33, , , Page 67

29 Transportation Expenditures by Funding Source Draft January 26, 2017 Fiscal Year P a WORK ELEMENT FHWA-PL FHWA-PL FTA 5303 FTA 5303 FTA 5307 FTA 5307 CT(RSTP) Unobligated Unobligated FY 17/18 carryover FY 17/18 carryover SJRRC TRACY (057) LTF LTA-MK r STANCOG MCAG CT CT(FSP) CT(FSP) CT(FSP) Manteca SR 99 TDA Tri-County FEES/INT RTIF CMAQ Calaveras SAFE SJCOGI VALLEY STATE STA TOTAL S J Affordable V Housing G Sustainable o COG COG STIP PPM (048) (053) Construction Proj. Mgmt COG COG COG COG COG COG COG MPOs Communities COG COG CONSULTANT COG PM Regional Transportation Plan 442, , , , , , Regional Planning Studies 80, , , , Transportation Improvement Plan 88, , , , Roads & Streets Planning 1,000, , , ,528, Transit Planning 295, , , , , , , Trans. Air Quality Planning/Modeling 151, , , , , , Goods Movement 10, , , Technical Assistance 3, , , Intergovernmental Coordination 62, , , , , Projections & Forecasts 59, , , , Aviation and Land Use 25, , , , Congestion Management Prog/Sys 75, , , Regional Planning 20, , , Valley MPO Coordination 17, , , , , , Habitat Implementation 561, , Measure K Administration 112, , , , Regional Transportation Impact Fee - 102, , , Smart Growth 7, , , COG OWP Management & Admin. 183, , , , , TDA Administration 75, , , , , Community Involvement 15, , , , , Transportation Demand Management 195, , , ,207, , ,581, , TDM Partnership Planning Grant - 1, Freeway Service Patrol 200, , , , Total 1,206, , , , ,000, , , , , , , , , ,026, , , , ,207, , , , , , ,489, ,489, SJCOG FTA 5303 Toll Credit Match 33, SJCOG FTA 5303 Unobligated Toll Credit Match - SJCOG FHWA PL Toll Credit Match 138, SJCOG FHWA PL Unobligated Toll Credit Match - TRACY FTA 5307 Toll Credit Match 10, , Page 68

30 AGENDA ITEM 7

31 February 2017 M & F STAFF REPORT SUBJECT: Commute Connection Enhanced Program Launch RECOMMENDED ACTION: Presentation SUMMARY Launched almost 40 years ago, Commute Connection was established when times were a little different - offering carpooling as a single solution in response to the need for resource conservation in the 1970s during the energy crisis. As time went on, the program expanded the options to promote vanpooling, biking, walking, and riding transit. Today, with major advances in technology, more mobility options, and a change in consumer expectations and travel habits, it was time for a new expression of the brand to be successful in connecting with the public and effecting change in the years ahead. As a result, Commute Connection launched the development of a new strategic plan and vision. BACKGROUND The first phase of the plan was marked by the implementation of a new trip planning system in The enhanced system features a multi-modal trip planner, employer portal, mapping, system metrics and a commuter engagement module. Led by the marketing agency Crocker and Crocker in 2016, phase II consisted of stakeholder interviews, surveys, focus groups, and industry research conducted for the purpose of discovering valuable insights on the services and features to assist with strategy development. The outcome of this research supported the overall continuation of program services, but confirmed a need for change in order to reach diverse audiences. The result a new name, logo, website, and strategic initiatives to expand awareness and increase participation. The presentation will include insight from the research and the release of new program elements. So, while the look may be new, the core mission has not changed--to promote smart travel options in an effort to improve air quality, reduce congestion, and enhance overall quality of life. Prepared by: Yvette Davis, Sr. Program Specialist