Planning Committee STAFF REPORT June 3, 2015 Page 2 of 3 Background Consistent with the Measure J Expenditure Plan, the proposed allocation is calcula

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1 Planning Committee STAFF REPORT Meeting Date: June 3, 2015 Subject Summary of Issues Recommendations Financial Implications Options Attachments Approval of FY Measure J Allocation for the Sub-Regional Southwest County Safe Transportation for Children: School Bus Program (Program 21c) The Measure J Expenditure Plan establishes the sub-regional Southwest County Safe Transportation for Children: School Bus Program (Program 21c) funding at 3.32 percent of sales tax revenues. Within that allocation, the Lamorinda School Bus Program receives 1.32 percent of annual revenues and the San Ramon Valley school bus program (dba TRAFFIX) receives 2.00 percent of annual revenues. Proposed program allocations are based on those percentages applied to projected Measure J sales tax revenues for FY Approve Resolution No G to allocate Measure J Sub-Regional Southwest County Safe Transportation For Children: School Bus Program funds for FY The FY allocation includes: $2,749,847 to the two school bus operators and $3,000 for program management/legal costs. 1. Not approve the allocation at this time; 2. Direct staff to investigate other allocation options. A. Resolution No G B. Lamorinda School Bus - FY Financial Plan C. Traffix FY Financial Plan Changes from Committee S:\05-PC Packets\2015\06\07-Brdltr Prog 21c Brdltr SW School bus MJ Alloc FY16.docm 7-1

2 Planning Committee STAFF REPORT June 3, 2015 Page 2 of 3 Background Consistent with the Measure J Expenditure Plan, the proposed allocation is calculated at 3.32 percent of sales tax revenues to the Express Bus Program. The plan further provides for a programmatic distribution of the funds by the following percentages. Service Original Revenue Estimate Current Revenue Estimate* Program provider percentage TRAFFIX (San Ramon Valley) $40.0M (2004 $) $30.0M (2004$) 2.0% Lamorinda School Bus $26.4M (2004 $) $19.8M (2004$) 1.32% * Current revenue from 2011 Measure J Strategic Plan update. Using the above percentages, the allocation split to each operator would be as provided in Resolution G. TRAFFIX Under the governance of a Joint Exercise of Powers Agreement that formed the Measure J Traffic Congestion Relief Agency (dba TRAFFIX) in 2008, the Town of Danville, City of San Ramon, San Ramon Valley Unified School District and Contra Costa County operate a 22-fleet school bus service in the San Ramon Valley that provides student transportation at ten schools for the school year: Monte Vista High School, San Ramon Valley High School, Los Cerros Middle School, Green Valley and Vista Grande elementary schools in Danville; and California High School, Pine Valley Middle School, Country Club, Coyote Creek, Neil Armstrong, and Walt Disney elementary schools in San Ramon. TRAFFIX provides the bus service through a contract with First Student, Inc. and program administration through a contract administrator. TRAFFIX does not operate as a typical home-to-school bus service but rather as a traffic congestion relief program. Routing has been established based on a traffic analysis that identified the most congested intersections within the San Ramon Valley during peak times, coupled with a market analysis that identified the areas that are most likely to use the student transportation service. TRAFFIX is just completing its sixth year of service which by all accounts, continues to build upon its success, year after year. TRAFFIX annual fare per passenger is $285. S:\05-PC Packets\2015\06\07-Brdltr Prog 21c Brdltr SW School bus MJ Alloc FY16.docm 7-2

3 Planning Committee STAFF REPORT June 3, 2015 Page 3 of 3 Lamorinda School Bus Program The Lamorinda School Bus Program began in FY as a demonstration program. Funding for the program was drawn from the Gateway/Lamorinda Traffic Program in Measure C, which authorized action/measures to mitigate the traffic density between Highway 24 and the Town of Moraga including cost benefit analysis. Following a comprehensive study and analysis of a number of alternatives, Lafayette, Moraga and Orinda jointly agreed to set aside one-half of the available funding in this category for the School Bus Program. The projected benefits were a reduction of approximately 5 percent in peak period traffic around schools on major arterials, with an attendant reduction in congestion. The Authority initially authorized the School Bus Program on a temporary basis, and required an evaluation of the effectiveness of the program in order to continue annual appropriations. A Joint Powers Agency (JPA) was created to administer the program, comprised of the two cities and the town and the three local kindergarten through 8 th grade school boards in the area. An initial five-year cooperative agreement was signed with the JPA in In FY the Acalanes Union High School District joined the JPA. Initial survey results suggested that the program was meeting its objectives. However, as a condition for approval of funding for the third year of the program (FY ), the Authority requested additional analysis of the impacts of the program and asked for a detailed, five-year financial plan. In April of 1997 the Authority accepted the financial plan. The Authority accepted revised survey results in May 1997, which continued to demonstrate the positive impact of the program in reducing congestion, consistent with the intent of Measure C. Funding was subsequently approved for FY and FY , completing the five-year demonstration period for the program. The program s demonstrated benefits through analysis of ridership and impact surveys established it as an ongoing part of the Measure C program. In June 1999, the Authority approved a second five-year Cooperative Agreement ( ) to continue the program through FY 2004, subject to annual appropriations. The agreement was amended three times thereafter to make it consistent with the 2002, 2004 and 2005 Strategic Plans, respectively. Under Measure J, the ongoing funding of the Lamorinda School Bus service was moved from the project category to the program category under the sub-regional Southwest County Safe Transportation for Children: School Bus Program (Program 21c). Under this program, the service will be allocated a set percentage of sales tax revenue. Lamorinda School Bus will provide the Authority with a financial plan showing, at a minimum, the most current audited year, current year, year of the funding request, and estimates for the three years following the funding request year. S:\05-PC Packets\2015\06\07-Brdltr Prog 21c Brdltr SW School bus MJ Alloc FY16.docm 7-3

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5 Attachment A RESOLUTION G RE: Southwest County Safe Transportation for Children: School Bus Program (Program 21c) Allocation of Measure J Funds for FY WHEREAS, the Measure C Sales Tax Renewal Ordinance (#88-01 as amended by #04-02, 06-01, and 06-02), hereinafter referred to as Measure J, and Measure J Transportation Sales Tax Expenditure Plan, designates allocations for specific programs for the Fiscal Year under the Southwest County Safe Transportation for Children: School Bus Program - Program 21c (hereafter "Program"); and WHEREAS, the funding level of $2,735,680 is programmed in Fiscal Year equals 3.32% of budgeted sales tax revenues for the year, consistent with the allocation methodology specified in the Measure J Expenditure Plan, and WHEREAS, additional program funding of $17,167 is available to be programmed from FY due to actual revenues received at a level above the allocation level in that year, and WHEREAS, eligible recipients under this Program have entered into cooperative agreements with the AUTHORITY for the purpose of using these funds for eligible services; and WHEREAS, these cooperative agreements recognize that any cost overruns will be the sole responsibility of the recipient of these funds; and any cost savings shall be returned to the Authority or applied to the recipient's next allocation, unless specified otherwise, and WHEREAS, eligible recipients under this Program have provided the Authority with financial plans covering the proposed allocation period; NOW THEREFORE BE IT RESOLVED, that the AUTHORITY does hereby approve the allocation of Measure J Southwest County Safe Transportation for Children: School Bus Program funds for Fiscal Year to (1) $3,000 to management of the program and (2) $2,749,847 to school bus operators in the amounts specified in Exhibit 1, attached and incorporated herein by reference. Julie K. Pierce, Chair This RESOLUTION was entered into at a meeting of the Contra Costa Transportation Authority held June 17, 2015 in Walnut Creek, California Attest: Danice J. Rosenbohm, Executive Secretary 7-4

6 Resolution G June 17, 2015 Page 2 Exhibit 1 PROGRAM: 21c - Southwest County Safe Transportation for Children: School Bus Program FY Sales Tax Revenue Estimate $82,400,000 % Year Program Revenue Estimate 3.32% $2,735,680 Previous Year Allocation Adjustment see below CCTA Program Management ($3,000) Available for Allocation $2,732, Notes: Agency Coop # Percent of Total Percent of Program 100% Amount 90% Amount Allocation Adjustment from FY TOTAL ALLOCATION TRAFFIX 21S % 60.24% $1,646,166 $1,481,550 $10,342 $1,656,508 Lamorinda % 39.76% $1,086,514 $977,862 $6,826 $1,093,339 Total Allocation $2,732,680 $2,459,412 $17,167 $2,749,847 Unallocated Balance $0 7-5

7 Attachment B Lamorinda School Bus Program 5 Year Financial Plan Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year Actuals Actuals Estimated Ex Budget Budget Budget Budget Budget 21 Buses 2012/ / / / / / / /20 EXPENDITURES 21 buses 21 buses 21 buses 21 buses 21 buses 21 buses 21 buses 21 buses 702 Personnel Services (1a) $170,075 $161,129 $164,739 $169,681 $174,772 $180,015 $185,415 $190, Office Supplies $878 $601 $1,200 $1,236 $1,273 $1,311 $1,351 $1, Postage $951 $978 $1,007 $1,038 $1,069 $1,101 $1,134 $1, Printing and Binding $1,308 $1,436 $1,200 $1,236 $1,273 $1,311 $1,351 $1, Books & Software $0 $0 $0 $0 $0 $0 $0 $0 748 Special Dept. Supplies $163 $153 $318 $500 $515 $530 $546 $ Misc. Expenses under $500 $360 $104 $500 $500 $500 $500 $500 $ Utilities-Telephone $923 $918 $1,000 $1,030 $1,061 $1,093 $1,126 $1, Office Lease $8,878 $8,878 $8,878 $9,600 $9,888 $10,185 $10,490 $10, Travel/Training $154 $76 $743 $1,000 $1,030 $1,061 $1,093 $1, Advertising/Legal Notices $0 $0 $0 $500 $515 $530 $546 $ Contractual Services First Student-LSBP(1) $1,481,427 $1,519,532 $1,562,895 $1,601,967 $1,642,017 $1,683,067 $1,725,144 $1,768,272 Legal Counsel $26 $422 $500 $515 $530 $546 $563 $580 Audit $3,500 $1,750 $3,500 $3,605 $3,713 $3,825 $3,939 $4,057 Insurance $9,953 $9,642 $10,609 $10,927 $11,255 $11,593 $11,941 $12,299 Consulting Services $0 $0 $0 $5,000 $5,150 $5,305 $5,464 $5,628 VISA S/C $12,606 $13,333 $13,733 $14,145 $14,569 $15,006 $15,457 $15,920 Website, etc.(2) $1,534 $964 $1,200 $1,236 $1,273 $1,311 $1,351 $1,391 Computer Lease $4,593 $4,593 $4,593 $3,000 $3,090 $3,183 $3,278 $3,377 Transfer Charges COL $5,800 $5,800 $5,560 $5,560 $5,560 $5,560 $5,560 $5, Equipment $0 $650 $650 $1,500 $500 $515 $530 $ General Contingency $0 $0 $0 $200,000 $0 $0 $0 $0 Total Expenditures $1,703,129 $1,730,959 $1,782,825 $2,033,776 $1,879,553 $1,927,548 $1,976,777 $2,027, Starting Fund Balance $661,510 $544,152 $536,319 $502,135 $151,386 $141,244 $143,275 $158,337 REVENUES Parent Contributions(3) $534,849 $556,737 $578,000 $590,031 $604,782 $619,901 $635,399 $651,284 One Trip Passes $16,490 $18,731 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 Measure J (SWAT TDM) $67,500 $67,500 $67,500 $67,500 $67,500 $67,500 $67,500 $67,500 Measure J Funds (4) $934,783 $1,047,175 1,055, ,863 1,179,222 1,224,247 1,270,988 $1,319,512 State DOE $29,749 $32,102 $29,749 $29,749 $0 $0 $0 $0 Interest Earnings $2,399 $881 $867 $885 $907 $930 $952 $976 Total Revenues $1,585,771 $1,723,126 $1,748,641 $1,683,028 $1,869,411 $1,929,578 $1,991,839 $2,056,272 Total Funds Available $2,247,281 $2,267,278 $2,284,960 $2,185,163 $2,020,797 $2,070,822 $2,135,114 $2,214,609 Ending Fund Balance $544,151 $536,319 $502,135 $151,386 $141,244 $143,275 $158,337 $187,336 Assumptions (1a) 85% one FTE starting 2014; one PT assistant (2) Website, Formsite, Ccontact, Clubtexting (4) Measure J Funds,via CCTA, based on percentage of 1/2 cent sales tax in CCC; (1) FS Daily Rate in = $ or $76,284 per bus; (3) Parent Fees in = RT $480 after June 15; FY is 90% of allocation; going forward all figures are 100% Continue 21 bus fleet Fees increase by 2.5% annually; 1230 RTEs each yr. 7-6

8 Attachment C REVENUES: Adopted Budget ACTUAL Adopted Budget ACTUAL ACTUAL ESTIMATED FY FY $ Change from FY FY FY FY FY FY Adopted Proposed Budget Adopted FY thru 3/31/2015 Budget Budget Measure J Sales Tax Revenue $ 1,449, $ 1,416, $ 1,506, $ 1,597, $ 1,406, $ 1,646, $ 1,646, $ 1,656, Parent Contributions (Fare Box) TRAFFIX - Measure J Traffic Congestion Relief Agency FY Financial Plan Statement of Revenue & Expenditures Dated: May 11, School Year School Year , , , , School Year , , , ,500 3 School Year , Total Parent Contributions $ 280, $ 292, $ 305, $ 290, $ 267, $ 368, $ 304, $ 336, , Other Funds TDM Funds 67, , , , , , , , CCC T1 27, , , , Total Other Funds $ 67, $ 67, $ 67, $ 67, $ 78, $ 135, $ 135, $ 135, $ - TOTAL REVENUES $ 1,797, $ 1,776, $ 1,879, $ 1,955, $ 1,752, $ 2,150, $ 2,086, $ 2,127, $ 10,080 EXPENDITURES: Contract Services Program Administration $ 100, , , , , , , Service Operator 1,305, ,309, ,414, ,405, ,208, ,686, ,686, ,737, , Audit 3, , , , , , , , Consulting Services 20, , Insurance 2, , , , , , , , Legal Counsel 7, , , , , , , , Treasurer/Accounting 7, , , , , , , , Banking Service /CC Charges 20, , , , , , , , ,500 Total Contract Services $ 1,445, $ 1,443, $ 1,573, $ 1,542, $ 1,307, $ 1,820, $ 1,829, $ 1,882, , Leases Office/Meeting Space Other Total Leases $ 1.00 $ Marketing & Sales Advertising , , , , Printing & Postage , , , , Promotional Materials 20, , , , , , , , Total Marketing & Promotions $ 21, $ 23, $ 21, $ 3, $ 15, $ 15, $ 21, $ 21, Public Notification Advertising 2, , , , , , , , Postage Total Public Notification $ 2, $ 1, $ 2, $ 2, $ 2, $ 3, $ 3, $ 3, Software License Fees (annual) , , , , , , (500) Support Fees (annual) Total Software $ $ $ 1, $ 2, $ 1, $ 1, $ 1, $ 1, Supplies 2, , , , , , , , Utilities Telephone Web Site Maintenance 3, , , , , , , , Total Utilities $ 3, $ 8, $ 11, $ 10, $ 5, $ 10, $ 14, $ 14, $ 10,

9 TRAFFIX - Measure J Traffic Congestion Relief Agency FY Financial Plan Statement of Revenue & Expenditures Dated: May 11, 2015 Adopted Budget ACTUAL Adopted Budget ACTUAL ACTUAL ESTIMATED FY FY $ Change from FY FY FY FY FY FY Adopted Proposed Budget Adopted FY thru 3/31/2015 Budget Budget Miscellaneous Expenses 1, , , , , , , , Monitoring Program 30, , , , General Contingency 10, , , , Other Misc. Expense TOTAL EXPENDITURES $ 1,518, $ 1,513, $ 1,623, $ 1,564, $ 1,334, $ 1,853, $ 1,884, $ 2,036, $ 52,509 Net Operating Income $ 278, $ 262, $ 255, $ 391, $ 417, $ 297, $ 202, $ 91, $ (42,429) Non-operating income: Interest (53) Total Other Income REVENUES OVER (UNDER) EXPENDITURES $ 279, $ 263, $ 255, $ 391, $ 418, $ 297, $ 202, $ 91, $ (111,026) Prior Year Carry-Over (Unreserved) Funds $ 254, $ 556, Ending Unreserved Balance Prior to Current Year Reservations $ 646, $ 758, $ 91, SUMMARY OF RESERVE FUNDS (FOR EXPANSION) FY FY FY FY FY FY Actual Actual Actual Actual Proposed Budget Proposed Budget Ending Unreserved Balance Prior to Current Year Reservations $ 323, $ 511, , , , , Beginning Reserve Balance (Deficit) 90, , , , , ,000, Total Reserved/Unreserved Fund Balance Available 413, , , ,356, ,558, ,091, Budgeted Reserves FY Reserves (90,000.00) (90,000.00) (90,000.00) (90,000.00) (90,000.00) (90,000.00) FY Reserves (90,000.00) (90,000.00) (90,000.00) (90,000.00) (90,000.00) (90,000.00) FY Reserves (100,000.00) (100,000.00) (100,000.00) (100,000.00) (100,000.00) FY Reserves (430,000.00) (430,000.00) (430,000.00) (430,000.00) FY Reserves (90,000.00) (90,000.00) (90,000.00) FY Reserves (200,000.00) (200,000.00) FY Reserves Total Budgeted Reserves $ (180,000.00) $ (280,000.00) $ (710,000.00) $ (800,000.00) $ (1,000,000.00) $ (1,000,000.00) NET UNRESERVED AVAILABLE $ 233, $ 411, $ 254, $ 556, $ 558, $ 91, NOTES Allocation of $1,646,166 plus Reconciliation of $10, A total of $115, was received in cash for parent contributions between 07/01/2014 and 03/31/2015. Because contributions begin in April of the preceding fiscal year, the $252, collected between April and June 2014 must be added to the amount collected between July and March of the current fiscal year to determine the total amount of parent contribution revenue recognized under generally accepted accounting principles for the fiscal year. This total is then recognized ratably as the year progresses based on the number of school days elapsed. Since approximately 73% of the school days in the school year had elapsed by March 31, 2015, $267, of the total $368, was recognized as revenue as of March 31, 2015, with the remainder to be recognized by June Estimated 1,600 bus pass purchases x $ Although TRAFFIX has received the full $67,500 in cash as of March 31, 2015, under generally accepted accounting principles the total amount is recognized as revenue in 12 equal monthly installments throughout the fiscal year. With 3 months remaining in the fiscal year, only $50,625 of the total $67,500 has been recognized. 5. The CCC T1 allocation is assumed to remain flat with the prior year amount of $67, Service Operator's expense is computed by multiplying the number of school days (180) times the number of buses (22) times the rate ($438.65). Therefore, the budget is $1,737, This is a small increase in audit fees. 8. Legal fees for FY This is a small increase in accounting fees. 10. Estimated final credit card charges for and the proposed budget for is based on the percentage increase in anticipated parent contributions over the fiscal year. 11. TRAFFIX will undergo a Valley-side traffic Level of Service (LOS) analysis in fall The LOS is two-fold: 1) will reaffirm improvements in levels of service in existing service areas; and 2) will evaluate level of service in areas not studied at program start-up (Dougherty Valley). 12. We anticipate $283 interest income based on a gross up of interest income through the current date

10 TRAFFIX - Measure J Traffic Congestion Relief Agency FY Financial Plan Statement of Revenue & Expenditures Dated: May 11, 2015 Adopted Budget ACTUAL Adopted Budget ACTUAL ACTUAL ESTIMATED FY FY $ Change from FY FY FY FY FY FY Adopted Proposed Budget Adopted FY thru 3/31/2015 Budget Budget 13. FY "reserved/unreserved available" includes the total audited, actual amounts. At June 30, 2014, the percentage of reserved fund balance to total fund balance is 59% ($800,000/$1,356,280)