Draft Fare Findings 77 Officer Succession & Open Positions for 2019 Memo-Officer Succession & Open Positions for Procurement Calendar

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1 Table of Contents Agenda 3 Approve Minutes of 11/05/18 Joint Meeting Executive Board & RAC Minutes of 11/05/18 Joint Meeting Executive Board & RAC 6 Establish Public Hearing Date for 01/07/19 for FY2019 Budget Amendment Memo-Establish Public Hearing Date for FY2019 Budget Amendment 10 Establish Public Hearing Date for 01/07/19 for Disposal of Surplus and Obsolete Assets Memo-Establish Public Hearing Date for Disposal of Surplus and Obsolete Assets 11 FY2018 Fourth Quarter Budget Report - FINANCE COMMITTEE ACTION Memo-FY2018 Fourth Quarter Budget Report 12 FY2018-4th Qtr Budget Report 13 QR-4 Budget To Actual Report-Overall Impression 14 FY2018 4th Quarter Budget Comments 18 FY2018-4th Qtr Budget Variance Report 26 FY2018 Fourth Quarter Cash Balance Report - FINANCE COMMITTEE ACTION Memo-FY2018 4th Quarter Cash Balance Report 27 FY2018 4th Quarter Cash Balance Report 28 Workshop - Local Allocation Project - FINANCE COMMITTEE ACTION Memo-Local Allocation 29 Local Allocation Methodology 31 PROCUREMENT Service Change Sign Work AFE-2019 SC Sign Work 33 RESO VEB Service Change 2019 Sign Work 34 PROCUREMENT - Bus Bench Revenue Generating Advertising Memo-Bus Bench Revenue Generating Advertising 36 RESO-VEB Bus Bench Revenue Generating Advertising 37 Transit Asset Management Plan Memo - TAM Plan 39 TAM Plan with redlines 41 Proposed Agenda for 01/07/19 VRT Board of Directors Meeting Proposed Agenda for 01/07/19 VRT Board of Directors Meeting 71 Marketing Fundamentals and Campaign Proposal Memo-Marketing Campaign 73 Fare Simplification and Restructure Project Memo-Fare Simplification and Pass Programs 74 1

2 Draft Fare Findings 77 Officer Succession & Open Positions for 2019 Memo-Officer Succession & Open Positions for Procurement Calendar Procurement Calendar 90 Department/Staff Reports Report Executive Director 91 Report-Development Dept 93 Report-Finance & Administration 97 Report-OperationsDepartment- November Report-Community Relations 101 2

3 Executive Board Meeting AMENDED Agenda Monday, December 3, :00 a.m. VRT Board Room 700 NE 2 nd Street Meridian, Idaho I. CALLING OF THE ROLL Chair Jim Hansen II. AGENDA ADDITIONS/CHANGES III. PUBLIC COMMENTS (Comments will be limited to no more than three (3) minutes.) IV. CONSENT AGENDA Items on the Consent Agenda are Action Items and will be enacted by one motion. There will be no separate discussion on these items unless an Executive Board Member requests the item be removed from the Consent Agenda and placed under Action Items. A. Approve Minutes of 11/05/18 Joint Meeting Executive Board & RAC Ө Pages 6-9 B. Establish Public Hearing Date for 01/07/19 for FY2019 Budget Amendment Ө Page 10 C. Establish Public Hearing Date for 01/07/19 for Disposal of Surplus and Obsolete Assets Ө Page 11 V. FINANCE COMMITTEE A. FY2018 Fourth Quarter Budget Report ACTION Ө Pages Kelli Badesheim Members will review and accept the FY2018 Fourth Quarter Budget Report of operating and budgetary results. B. FY2018 Fourth Quarter Cash Balance Report ACTION Ө Pages Kelli Badesheim Members will review and accept the FY2018 Fourth Quarter Cash Balance Report. C. WORKSHOP - Local Allocation Project ACTION Ө Pages Stephen Hunt Members will review and provide input on the proposed local allocation methodology. This methodology will compare the actual FY19 allocation against the proposed methodology NE 2nd Street, Suite 100 Meridian, ID p: f:

4 VI. EXECUTIVE BOARD - ACTION ITEMS A. PROCUREMENTS Service Change Sign Work Ө Pages Jake Hassard The Executive Board members will review for approval Resolution VEB for a procurement for sign installation, removal, and adjustment in order to bring about the 2019 service changes. 2. Bus Bench Revenue Generating Advertising Ө Pages Jake Hassard The members will review for approval Resolution VEB for procurement for a vendor to provide benches and related amenities for Valley Regional Transit. B. Transit Asset Management Plan Ө Pages Rhonda Jalbert Staff will present the Transit Asset Management Plan for review and recommendation for approval by the Executive Board to the VRT Board of Directors. C. Proposed Agenda for 01/07/19 VRT Board of Directors Meeting Ө Pages Kelli Badesheim The Executive Board will review for approval the proposed agenda for the 01/07/19 VRT Board of Directors Meeting and authorize the Executive Director to use discretion in adding any other information that may arise before the meeting packet is schedule to be distributed in mid to late December. D. Marketing Fundamentals and Campaign Proposal Ө Page 73 Kelli Badesheim Katherine Johnson, with Stolz Group, will present VRT brand and campaign information. VII. EXECUTIVE BOARD - INFORMATION ITEMS A. Fare Simplification and Restructure Project Ө Pages Rhonda Jalbert Staff will review Fare Simplification and Restructure Project and inform the Executive Board of upcoming activities. B. Officer Succession & Open Positions for 2019 Ө Pages Kelli Badsheim The members will review the officer succession for 2019 and are asked to think about nominations for the open positions which will be voted on at the 01/07/19 VRT Board of Directors meeting. C. Procurement Calendar Ө Page 90 Kelly Jakovac The most current Procurement Calendar is included in the packet for information. D. Department/Staff Reports Ө Pages VRT Staff The most current Department/Staff Reports are included for information. 4

5 E. COMPASS Board & VRT Board Holiday Lunch Kelli Badesheim Members are reminded of the COMPASS Board & VRT Board Holiday Lunch to be held on Monday, December 17, 2018, at noon, at Nampa Civic Center. Please let Linda Ihli or Paula Cromie know if you plan to attend. VIII. EXECUTIVE SESSION The Executive Board may convene into Executive Session at this time Pursuant to Idaho Code , identifying one or more of the specific paragraphs (a) through (j). An action by the Executive Board may follow the Executive Session. IX. ADJOURNMENT Ө = Attachment Agenda order is subject to change. NEXT VRT EXECUTIVE BOARD MEETING: Monday, January 7, :00 a.m. (followed by the VRT Board of Directors Meeting at 12:00 p.m.) VRT Board Room 700 NE 2 nd Street Meridian, Idaho Mission Statement: Valley Regional Transit s mission is to leverage, develop, provide, and manage transportation resources and to coordinate the effective and efficient delivery of comprehensive transportation choices to the region s citizens. (ValleyConnect 2.0 Plan approved 04/02/18) Arrangements for auxiliary aids and services necessary for effective communication for qualified persons with disabilities or language assistance requests need to be made as soon as possible, but no later than three working days before the scheduled meeting. Please contact Mark Carnopis, Community Relations Manager at if an auxiliary aid is needed. 5

6 ITEM IV-A JOINT MEETING MINUTES Executive Board Meeting and Regional Advisory Council Monday, November 5, 2018 at 11:00 a.m. VRT Board Room 700 NE 2 nd Street Meridian, Idaho MEMBERS ATTENDING MEMBERS ABSENT OTHERS PRESENT Dave Bieter, Boise (phone) Garret Nancolas, Caldwell Kelli Badesheim, VRT Luke Cavener, Meridian Linda Ihli, VRT Elaine Clegg, Boise Mark Carnopis, VRT Corey Cook, Boise State University Rhonda Jalbert, VRT (phone) Tom Dale, Canyon County Billy Wingfield, VRT Jim Hansen, ACHD Stephen Hunt, VRT Debbie Kling, City of Nampa Jacob Hassard, VRT David Lincoln, ACCHD Brian Parker, VRT Darin Taylor, Middleton Kelly Jakovac, VRT Jim Tibbs, Ada County Rocky Perkins, ATU 398 RAC MEMBERS ATTENDING RAC MEMBERS ABSENT Ken Pidjeon, Citizen Susan Bradley Kelly Berg Liisa Itkonen, COMPASS Lisa Brady Randy Johnson David Corcoran, ACHD Annette Harper Terri Lindenberg Nancy Lohr, First Transit/VR-Caldwell Jason Madsen Courtney Rosenkoetter Gregg Eisenberg, First Transit-VR Boise Jeremy Maxand Salome Mwangi Eric Selekof Tina Wilson At 11:10 a.m. VRT Chair Jim Hansen called the VRT Executive Board meeting to order with a quorum present in person and by phone. Regional Advisory Council (RAC) Chair Jeremy Maxand called the RAC meeting to order with a quorum present. AGENDA ADDITIONS/CHANGES - none PUBLIC COMMENTS Ken Pidjeon, Boise citizen, commented on ITEM X-B-4-Performance Measures and made the following suggestions: add revenue to the matrix; break out Fixed Route into Boise City, Nampa-Caldwell, and Intercounty ridership revenue; adopt ¼ mile on side of roadway as standard; and make the document more consistent with numeric charts. CONSENT AGENDA EXECUTIVE BOARD Luke Cavener moved to approve the Executive Board Consent Agenda. The motion was approved by the Executive Board members. The Executive Board Consent Agenda consisted of the following items: Approve Minutes of 09/17/18 Executive Board Special Meeting Approve Minutes of 09/24/18 Executive Board Meeting Approve Regional Advisory Council Application for Salome Mwangi 700 NE 2nd Street, Suite 100 Meridian, ID p: f:

7 ITEM IV-A CONSENT AGENDA REGIONAL ADVISORY COUNCIL Lisa Brady moved to approve the Regional Advisory Council Consent Agenda - Minutes of 10/16/18 RAC Meeting; seconded by Annette Harper. The motion was approved unanimously by the Regional Advisory Council members. FINANCE COMMITTEE - INFORMATION Local Allocation Project Stephen Hunt reviewed the methodology and time line for the Local Allocation Project. A workshop on the Local Allocation Project will be held at the December 3, 2018 Executive Board meeting where further discussion will take place. ACTION ITEMS EXECUTIVE BOARD Executive Board/VRT Board Meeting Schedule for 2019 and Proposed Schedule for 2020 Kelli Badesheim reviewed the Executive Board/VRT Board Meeting Schedule for 2019 and Proposed Schedule for 2020 noting the 2019 schedule showed a VRT Board of Directors meeting in August rather than July to provide more time for staff to prepare the budget documents and not run up against the Independence Day holiday. Elaine Clegg moved to approve the Executive Board/VRT Board Meeting Schedule for 2019 and Proposed Schedule for 2020 as presented; seconded by David Lincoln. The motion was approved unanimously. RAC Membership Matrix The membership makeup of the Regional Advisory Council (RAC) was reviewed. Chair Hansen asked the RAC members to introduce themselves noting the various qualifications, experience, and expertise they bring to the Regional Advisory Council. Following discussion, Darin Taylor moved to approve the RAC membership matrix with the addition of specific interests represented and to be represented on the Council outlined on the matrix itself; seconded by Tom Dale. Following discussion, the motion was approved unanimously. JOINT ACTION RAC FY2019 Work Plan The RAC FY2019 Work Plan was reviewed and discussed with the three main projects to be worked on during FY2019 to include: ACCESS Scheduling Policy Fare Simplification and Pass Programs Bus Stops Accessibility, Prioritization, and Review 7

8 ITEM IV-A Debbie Kling moved to approve the plan as recommended; seconded by Darin Taylor. The motion was approved unanimously by the Executive Board & RAC members. PROCUREMENTS ACTION EXECUTIVE BOARD Harvest Transit Vehicle Billy Wingfield requested the Executive Board members approve Resolution VEB to procure a nine (9) passenger, accessible transit van. Luke Cavener moved to approve Resolution VEB to procure a nine (9) passenger, accessible transit van; seconded by Tom Dale. The motion was approved unanimously. Happy Day Transit Center Upgrades Jake Hassard presented a request to procure professional design services for several projects at the Happy Day Transit Center upgrades - Resolution VEB Following discussion, Tom Dale moved to adopt Resolution VEB to procure professional design services for Happy Day Transit Center upgrades; seconded by Luke Cavener. The motion was approved unanimously. JOINT INFORMATION ITEMS FY2018 VRT Public Comment Report Mark Carnopis presented the FY2018 VRT Public Comment Report and noted that trends will be added to the report as well as compliments and suggestions. The report will be posted on the VRT website. ValleyConnect 2.0 Service Change Update - Implementation Schedule Stephen Hunt explained VRT is updating the service change schedule to better align with local jurisdiction budget development. Staff will identify FY2019 service change objectives during the first quarter of FY2019 and begin the public process to address the projected shortfall on Highway 44 services. Service Area Update Stephen Hunt described the purpose of service areas in the ValleyConnect 2.0 implementation which is to guide incremental steps driven by local priorities and coordinate activities with local jurisdictions. 8

9 ITEM IV-A State Street Corridor Project Update Kelli Badesheim reported the State Street Corridor Executive Team is working to outline the scope of work for coordination of work on State Street. Elaine Clegg suggested providing a more in depth update on State Street to the Regional Advisory Council members at the next RAC meeting with Elaine Clegg and/or Jim Hansen attending the meeting to provide a broad understanding of the challenges and get support from various groups to help make those changes happen. Performance Measures - Quarterly Report & Annual Report Brian Parker reviewed the updated quarterly performance report which included dashboard and metrics. Brian noted the 4 th quarter will be included in the annual report which will be available in January. Staff will break out the types of fixed route. Best practices/national standard goals will be included in the annual report. Custom reports will be created to send out to City Councils. Transit Asset Management Plan Rhonda Jalbert noted the VRT Board had approved the TAM Policy in September so staff is now working on TAM Plan. Rhonda asked the members to read page 71 in packet regarding prioritizing investments to understand how dollars are being prioritized. Procurement Calendar The most current Procurement Calendar was included for information. Department/Staff Reports The most current Department/Staff Reports were included in the packet for information. EXECUTIVE SESSION - none ADJOURNMENT There being no further business before the Executive Board and Regional Advisory Council Joint Meeting, the meeting was declared adjourned at 1:08 p.m. by the VRT Chair and RAC Chair. NEXT MEETINGS: VRT EXECUTIVE BOARD REGIONAL ADVISORY COUNCIL: Monday, December 3, 2018 Tuesday, December 18, :00 a.m. 9:00 a.m. VRT Board Room VRT Board Room 700 NE 2 nd Street 700 NE 2 nd Street Meridian, Idaho Meridian, Idaho 9

10 ITEM IV-B TOPIC: Request for Public Hearing Date - FY2019 Budget Amendment DATE: November 16, 2018 Summary: Annually, the VRT Board approves a budget amendment that carries unexpended grant spending authority into the new fiscal year budget. Staff is requesting this process take place at the January 7, 2019 VRT Board of Directors meeting.. Staff Recommendation/Request: Staff recommends the Executive Board set the Public Hearing date for the FY2019 Budget Amendment for January 7, 2019 at 12:00 p.m. Implication (policy and/or financial): If the budget amendment is not approved, some capital projects could be adversely affected. For detailed information contact: Kelli Badesheim, Executive Director, , kbadesheim@valleyregionaltransit.org 700 NE 2nd Street, Suite 100 Meridian, ID p: f:

11 ITEM IV-C TOPIC: Request for Public Hearing Date-Disposal of Surplus and Obsolete Assets DATE: November 16, 2018 Summary: VRT and ValleyRide have and will be accumulating surplus and obsolete assets, most of which will be beyond their useful life or not practically repairable. The VRT disposal policy requires a public hearing prior to these assets being transferred to our contributing jurisdictions, donation, sale, or selling for scrap. Staff requests the public hearing for asset disposals covering January 2019 through December 2019, be scheduled for January 7, 2019, at the VRT Board of Directors meeting. Staff Recommendation/Request: Staff requests that the Executive Board set the public hearing for assets disposals as listed below in the method most advantageous to VRT for Monday, January 7, 2019, at 12:00 p.m. at the regularly scheduled VRT Board of Directors meeting. Implication (policy and/or financial): Generally donations or transfers generate goodwill from the public and the receiving institution. Sale or scrapping an item will usually generate a modest income. Highlights: Potential items for disposal include: Buses beyond their useful life. These vehicles are not suitable for the GoRide program. Support vehicles beyond their useful life that are not suitable for vehicle sharing Obsolete spare parts inventory Desk side computers, monitors, and peripherals Server computers no longer of use or capable of reasonably costing upgrades Worn out or broken furniture. For detailed information contact: Billy Wingfield, Operations Director, , bwingfield@valleyregionaltransit.org 700 NE 2nd Street, Suite 100 Meridian, ID p: f:

12 ITEM V-A TOPIC: FY2018 Fourth Quarter Budget Report DATE: November 13, 2018 Summary: The fourth quarter of FY2018 was completed on September 30, Attached is the Budget Variance Report through the fourth quarter. Staff Recommendation/Request: Staff recommends acceptance of the report. Implication (policy and/or financial): Overall, the Budget Variance Report is within parameters Attachment FY2018 4th Quarter Budget Report FY2018 4th Quarter Budget Overall Assessment FY2018 4th Quarter Budget Comments More Information: Kelli Badesheim, Executive Director, , 700 NE 2nd Street, Suite 100 Meridian, ID p: f:

13 ITEM V-A VALLEY REGIONAL TRANSIT FY2018 FOURTH QUARTER BUDGET REPORT OCTOBER 2017 SEPTEMBER 2018 Ada County System Canyon County System Regional Boise GreenBike Category Budget Actual % Variance Budget Actual % Variance Budget Actual % Variance Budget Actual % Variance Directly Generated Revenues $ 716,052 $ 707,582 99% $ 169,651 $ 153,690 91% $ 65,800 $ 15,517 24% $ 67,226 $ 87, % Special Transit Fares 18,084 22,641 Auxiliary Revenues 65,717 96, % 9,806 31, % Non Transportation Revenues 185, , % 28 31,025 Federal Operating Assistance 2,528,867 2,060,732 81% 982, ,406 93% 3,128,491 2,644,297 85% Federal Capital Assistance 7,010,877 3,550,949 51% Local Operating Assistance 5,499,466 5,347,803 97% 584, , % 2,047,209 1,979,163 97% 300, ,807 69% Local Capital Assistance 854, ,345 43% TOTAL REVENUE $ 8,995,334 $ 8,420,970 $ 1,746,885 $ 1,798,052 $ 13,106,625 $ 8,587,296 $ 367,335 $ 293,112 Wages and Salaries $ 3,326,685 $ 3,486, % $ 766,100 $ 737,366 96% $ 1,237,807 $ 1,164,151 94% $ 117,963 $ 127, % Fringe Benefits 3,279,111 3,011,099 92% 143, , % 812, ,607 92% 76,644 62,107 81% Professional Services 500, , % 247, ,612 83% 1,538,483 1,080,678 70% 103,928 28,996 28% Materials and Supplies 1,005, ,479 88% 348, , % 77,990 82, % 15,300 26, % Utilities 137, ,807 99% 34,220 50, % 109,327 66,248 61% 3,000 2,498 83% Casualty and Liability Insurance 480, ,423 60% 167, ,719 98% 67,711 62,980 93% 5,000 5, % Purchased Transportation 1,151,673 1,072,047 93% Miscellaneous 154,810 86,533 56% 30,750 9,756 32% 217, ,945 58% 15,500 11,238 73% Miscellaneous Subrecipient Pass thru 437, ,136 82% Interest 5,533 0% % Leases and Rentals 110, ,626 96% 3,950 0% 28,508 12,690 45% 30,000 29,638 99% Capital (Note 3) 7,428,125 3,428,566 46% TOTAL EXPENSE $ 8,995,334 $ 8,542,877 $ 1,746,885 $ 1,763,987 $ 13,106,624 $ 8,204,170 $ 367,335 $ 293,112 Check #'s 21,747 Note 1: Variance percentages shown as whole percentages. Note 2: No percentage shown for null data or situations where division is by zero. Note 3: Total gross capital expense. Capitalizaiton accounting entry added back. VALLEY REGIONAL TRANSIT CAPITAL SPENDING OCTOBER 2017 SEPTEMBER 2018 Capital Budget Expense Category Budget Annual Actuals Thru QR 4 Revenue Vehicles $ 1,590,316 $ Revenue Vehicles Sub Recipients 514, ,714 Non Revenue Vehicle 66,210 55,744 Shop & Other Equipment 328,000 78,698 Capital Facility Safety/Security/Communications 160,000 69,590 Fareboxes 143,649 Facility 918,331 79,022 IT Hardware 75,000 82,440 IT Software 24,133 Main Street Station 76,103 51,987 C1 Systems Enhancements Stops/Shelters 45,000 36,272 Bike /Pedestrian Improvements 1,853,861 1,616,333 Regional Park & Ride Projects 552, ,354 Y1 & E1 Middleton Park N Ride ($466,622 Fed.) / BSU Park Capital Projects Subrecipients 1,248,000 8,630 TOTAL CAPITAL EXPENSE $ 7,428,125 $ 3,428,566 13

14 ITEM V-A TOPIC: QR-4 Budget To Actual Revenue and Expense Variance Reporting DATE: November 13, 2018 Summary: As of September 30 th, Fiscal Year 2018 was complete. The QR-4 Financial Reports have been analyzed by Staff and Contractors for presentation at the December 3 rd Executive Board Meeting. Listed below are the high-level observations: Overall Impression: Across all Systems, revenues exceed expenses by $165,693 for FY2018 for operating activities. Ada County: 95% of Budget. Lower amounts of Local Revenues were allocated into this system; contributing to the revenue shortfall. Lower Directly Generated Revenues were earned in FY2018 in comparison to the prior year. The difference between total revenues ($8,420,970) and total expenses ($8,542,877) was -$121,907. Less Federal revenues were realized than the original budgetary estimates. This shortage was covered by favorable financial performance in Regional. Professional Services expense was 10% higher than Budget due to higher repair & maintenance, technical services and bus stop system costs. Wages were 5% higher than Budget. The overages were covered by savings in Fringes, Materials and Supplies, Insurance and Miscellaneous Expense. Canyon County: 101% of Budget. Actual expenses tracked just over budget by $17,102. This amount was covered by a favorable revenue variance of $51,167 where actual revenues exceeded Budgeted Revenues. Actual Revenues earned during FY2018 were $1,798,052. Actual Expenses for the fiscal year were $1,763,987. Revenues exceeded expense by $34,066. Fringe Benefits were 133% of Budget whereas Materials and Supplies were 117% of Budget. Utilities were 147% of Budget. This expense category is of a much lower magnitude of impact. Higher vacation/sick costs, parts, mobile data plan and tire expenses are driving these unfavorable variances. Savings in Wages, Professional Services, Insurance and Miscellaneous Expense allow for the System to be just over Budget by 1% at fiscal year-end. Regional: 84% of Budget. Favorable variances in material expense categories. After removing out Sub-Recipient pass-through operating transactions and capital transactions that are accounted for in Division 10 the operating results for Regional are as follows: Actual Revenues exceeded Actual Expense by $253,534. This favorable operating result (and the favorable operating results of the Canyon County System) offset the Local Revenue shortage in the Ada County System by $165,693 Lower Professional Services, Wages, Fringe Benefits, Purchased Transportation, Utilities, Insurance and Miscellaneous Expense levels are chiefly responsible for the net favorable performance in Regional for FY2018. Lower levels of spending in Community Programs Support (Division 19) factored heavily in Regional s performance. Division 41 received a portion of the Local Allocation Funding that should have been more appropriately allocated into the Ada County System based upon need and hindsight. 700 NE 2nd Street, Suite 100 Meridian, ID p: f:

15 ITEM V-A Boise GreenBike: 80% of Budget. Favorable variances in material expense categories offset greater Wages and Materials and Supplies. Actual Revenues of $293,112 exactly offset Actual Expenses of $293,112. Lower Professional Services and Fringe Benefits (to a lesser extent) were large enough to offset unfavorable variances. Staff Recommendation/Request: This memorandum is for informational purposes. The QR-4 Reports will be presented at the December 3 rd Executive Board Meeting. Implication (policy and/or financial): Stewardship of financial resources. Compliance with VRT Financial Policies. Attachment Regional Budget To Actual Expense Analysis Thru QR-4 More Information: Kelli Badesheim, Executive Director, (208) , kbadesheim@valleyregionaltransit.org 15

16 16 ITEM V-A

17 ITEM V-A FY2018 REGIONAL BUDGET TO ACTUAL EXPENSE ANALYSIS Summary Account Name Sum of QR-4 Expense Sum of BudgetYtd Sum of Variance LABOR SALARIES/WAGES (501) $ 1,164,151 $ 1,237,807 $ (73,655) FRINGE BENEFITS (502) 747, ,097 (64,490) PROFESSIONAL SERVICES (503) 1,080,678 1,538,483 (457,805) MATERIALS & SUPPLIES (504) 82,816 77,990 4,826 UTILITIES (505) 66, ,327 (43,079) CASUALITY & LIABILITY (506) 62,980 67,711 (4,731) PURCHASED TRANSPORTATION (508) 1,072,047 1,151,673 (79,626) INTEREST EXPENSE (511) (94) LEASE & RENTALS (512) 12,690 28,508 (15,818) MISCELLANEOUS EXPENSE (509) 486, ,503 (168,422) CAPITAL SPENDING 2,950,642 7,428,125 (4,477,483) Grand Total $ 7,726,246 $ 13,106,624 $ (5,380,378) Note 1: Total Capital Spending is $2,950,642 + $477,924 Adj. = $3,428,

18 VALLEY REGIONAL TRANSIT FY 2018 BUDGET REPORT COMMENTS October September 2018 ITEM V-A At the end of September, Fiscal Year 2018 was complete. The following is a review of the budgetary status of the Ada, Canyon, Regional, and Boise GreenBike Systems as of September 30, A ten percent (+/- 10%) tolerance threshold is utilized for analysis purposes in this report. Ada County System Revenues Directly Generated Funds (99% of Budget) - This line item is within budget parameters. Directly Generated Revenues were $707,582 through September for FY2018. Directly Generated Revenues were $771,553 through September of FY2017. Directly Generated Revenues were 8.3% lower in comparison to the prior fiscal year. Special Transit Fares (No Budget) - This is the revenue associated with the Gowen Thunder Airshow. Auxiliary Revenues (146% of budget) - This line item favorably exceeded budgetary estimates due to greater amounts of advertising being sold for fixed line operations. This revenue source is lower in order of magnitude than some of the other revenue categories. Non-Transportation Revenues (103% of Budget) - This line item is within budget parameters. The Alternative Fuels Rebate is the principal source of revenue in this category. Federal Operating Assistance (81% of Budget) - This line item is unfavorably outside of budget parameters principally due to FY2018 federal funds for Demand Response operations not being available. Three (3) revenue sources are contained within this category: Federal Assistance for Operations, Preventative Maintenance and Buildings & Grounds. Through the end of the fiscal year, VRT utilized more Local Operating Revenues (Overmatch) to cover the Federal Operating amounts not available. Local Operating Assistance (97% of Budget) - This line item is within budget parameters. Expenses Total Ada County System operating expenses were 95.0% of budget through September. Wages and Salaries (105% of budget) - This line item is within budget parameters. Fringe Benefits (92% of budget) - This line item is within budget parameters. Professional Services (110% of Budget) - This line item is within the +/- 10% threshold but at the upper limit of the range. Expenses for Repair & Maintenance were $46,163 higher (unfavorable) than the allocated budget amount. Expenses for Professional & Technical 18

19 ITEM V-A Services were $22,280 higher than the budget amount. Expenses for the Operating Contract with First Transit, Bus Stop System and Drug Screen were $19,890, $5,400 and $3,549 higher (respectively) than their established budgets. Those unfavorable variances (where actual expense exceeded budget through September) were offset by favorable variances in the following subcategories: Contract Labor (-$24,451), Legal Services (-$20,387), Uniforms (-$2,178) and all Other ($1,276). The net overage across in this category ($48,992) is presently being offset by favorable variances in other expense categories. Materials and Supplies (88% of Budget) - This line item is lower than budget parameters. Through September, favorable variances (where actual expense was less than what was budgeted) exist within the following subcategories: CNG-Diesel-Unleaded/Diesel Fuels ($87,059), Tires & Tubes ($42,462), Minor Equipment ($23,355), Departmental Supplies ($21,287), Printing & Binding ($14,012), and Asset Disposal Revenue ($5,406). Asset Disposal Revenue has historically been recorded against Parts and Supplies. Technically, this line item will be most likely be reclassified into a non-operating revenue for financial statement presentation purposes. These favorable variances were partially offset by unfavorable variances in Parts (-$60,205), Oils & Lubes (-$3,470), Shelter Repairs (-$2,676) and Office Supplies (-$2,456). Utilities (99% of Budget) This line item is within budget parameters. Casualty Insurance (60% of Budget) - This line item is significantly below budget parameters due to negotiating vehicular insurance coverage as a component of the First Transit Management Contract. Miscellaneous (56% of Budget) - This line item is favorably lower than the established budget. Through September, lower amounts have been spent in the Other Expenses (-$56,132), Freight/Postage (-$5,204), Personal Training/Travel & Meetings (-$5,287), Bank Service Charges (-$1,032) and Team Bus (-$622) line items. Leases and Rentals (96% of Budget) - This line item is within budget parameters. Canyon County System Revenues Directly Generated Revenues (91% of Budget) - This line item is just within budget parameters. Directly Generated Revenues were $153,690 through September. Total Directly Generated Revenues through September of FY2017 were $165,905. Directly Generated Revenues were 7.4% lower than the prior fiscal year. Special Transit Fares (No Budget) - This is the revenue associated with the Gowen Thunder Airshow. 19

20 ITEM V-A Auxiliary Revenues (Advertising) (322% of Budget) - This line item exceeds budget parameters due to greater amounts of advertising being sold for fixed line operations. Originally, the budget was set artificially low so that the excess revenues over the budget could be utilized for capital match purposes in Division 10. Those revenues were not allowed to be deferred since the earnings process was substantially complete resulting in complete recognition of the earned amount in the Canyon County System. Non-Transportation Revenues The Alternative Fuels Rebate is the principal revenue source in this category. This discretionary source has typically been utilized by the Authority for capital match purposes. Therefore, it is not included as an operational revenue source. A small amount of other miscellaneous revenues ($28) was recorded in this category through September. Federal Operating Assistance (93% of Budget) - This line item is within budget parameters. Local Operating Assistance (116% of Budget) - This line item is favorably outside of budget parameters. Due to funding limitations available in Federal Operating Assistance in the small urban area through FY2018, more local funds had to be utilized in order to cover operating expenses. Expenses Total Canyon County System operating expenses were 101.0% of budget through September. The slight unfavorable variance is being covered by the favorable variance in Canyon County s revenues where actual revenues exceeded budget by $51,167. Wages and Salaries (96% of Budget) - This line item is within budget parameters. Fringe Benefits (133% of Budget) - This line item is significantly higher than the annual budget. The unfavorable subcategory variances were as follows: Miscellaneous Earnings which includes overtime, sick and vacation ($39,806), Workers Compensation ($5,708), FICA ($5,109), and Health ($1,671). These unfavorable variances were partially offset by favorable variances in Unemployment (-$2,738) and Uniforms/Employee Materials Allowance/CDL (- $2,401). Professional Services (83% of Budget) - This line item is significantly lower than budget parameters. Actual expense through September was $204,612 whereas the established budget was $247,650. Through September, the Canyon County System experienced lower Operating Contract expenses ($52,287), Uniforms ($5,443), Repair & Maintenance ($2,122), and Advertising ($541). These favorable variances were partially offset by unfavorable variances in Professional & Technical Services (-$15,810), Bus Stop System (-$1,486), Drug Screen (-$463) and Contract Labor (-$46). Materials and Supplies (117% of Budget) - This line item significantly exceeds budgetary parameters. Through September, unfavorable variances existed within the following line items of Materials and Supplies: Parts ($31,752), Tires & Tubes ($23,346), Printing ($13,188) principally associated with the Canyon County Service Change that was not budgeted, Minor 20

21 ITEM V-A Equipment ($2,541) and Office Supplies ($468). These unfavorable variances were partially offset by the following favorable variances: Oils & Lubricants (-$5,397), CNG-Diesel-Unleaded Fuel (-$5,331) and Departmental Supplies (-$1,034). Utilities (147% of Budget) - This line item significantly exceeds budgetary parameters although its overall materiality in relation to the total budget is lower than other expense categories. Higher Mobile Telecommunications /Data Plan/Cellular expenses ($18,314) were partially offset by the following favorable variances in Electric (-$913), Natural Gas (-$751) and Water/Sewer (-$561) expenses. Casualty Insurance (98% of Budget) - This line item is within budget parameters. Miscellaneous (32% of Budget) - Favorable variances through September were evident in the following subcategories: Other Expenses ($11,591), Travel and Meetings ($7,444), Bank Service Charges ($3,105), and Licenses-Fees ($259). Those favorable variances were partially offset by unfavorable variances in Freight/Postage (-$1,155) and Team Bus (-$250). Interest (0% of Budget) - No interest expenses have been incurred through September. Leases and Rentals (0% of Budget) - No expenses were incurred through September. Regional Operations Revenues Directly Generated Revenues (24% of Budget) - This line item is unfavorably outside of budget parameters. This revenue category comprises fares from Division 41 - Community Transportation Operations. Community Transportation programs fares were $15,517 through September; whereas the Budget was established at $65,800. The Village Van program originally established a higher budget for fares from customers. The program was subsequently redesigned with the employer supporting the program contributing local match to cover the program costs. These revenues are accounted for in the Local Assistance revenue lines that are within the budget tolerance threshold. Non-Transportation Revenues (No Budget) - The CNG Rebate for the Canyon County System was recognized as revenue in Regional due to management s intent to utilize those funds for capital match purposes. Capital transactions are accounted for in Regional (Division 10). A small amount of interest was also recorded in miscellaneous income through September. No FY2018 budget was established for this source. Federal Operating Assistance (85% of Budget) - This line item is unfavorably outside of budget parameters. Amounts recognized as revenue in this category are integrally tied to the availability of executed grants and the level of expenses incurred during the year. Two FY2018 Grants were not executed and available for drawdown by the end of September. Those grants are being executed in the subsequent fiscal year. 21

22 ITEM V-A Federal Capital Assistance (51% of budget) - This line item reflects lower levels of capital spending or subrecipient capital pass-thru transactions when compared to the Budget. Local Operating Assistance (97% of Budget) - This line item is within budget parameters. Local Capital Assistance (43% of Budget) - This line item reflects lower levels of capital spending when compared to the established Budget through fiscal year end. Expenses Regional operating expenses were 84.3% of budget through the end of the fiscal year after removing Subrecipient Pass-Thru and Capital expenses. Subrecipient Pass-Thru expenses have an exact offset to the specific Federal revenues that are drawn down. Actual Capital expenses are lower than budget and are analyzed later within this report. Wages and Salaries (94% of Budget) - This line item is within budget parameters. Fringe Benefits (92% of Budget) - This line item is within budget parameters. Professional Services (70% of Budget) - This favorable variance is attributed to the following: Lower spending in Professional & Technical Services ($215,541), Advertising Services ($151,228), Contract Labor ($63,876), Repair and Maintenance principally in Division 41 ($19,548) Legal Services ($4,532), Community Relations ($2,297) and all Others ($782). Material and Supplies (106% of Budget) - This line item is within budget parameters. Utilities (61% of Budget) - This line item is favorably under Budget parameters. This net favorable variance has been largely been driven by lower expenses through September in Tele/Communications expenses within Division 10 Department 170 (IT) ($40,734). Lower expenses were also recorded in Cellular Telephones ($3,309), Electric ($2,069) and Gas ($436). These favorable variances offset an unfavorable variance in Condominium Association expense (-$3,469). Casualty Insurance (93% of Budget) - This line item is within budget parameters. Purchased Transportation (93% of Budget) - This line item is within budget parameters. Miscellaneous (58% of Budget) - This line item is favorably under Budget parameters through September. This net favorable variance is attributed to the following: Lower spending in Dues & IT Subscription Services ($57,165), Travel/Meetings ($32,780), Personal Training ($13,147), Other Expenses ($4,273) and Postage/Freight ($687). These favorable variances were partially offset by an unfavorable variance in Licensing/Web Hosting (-$17,496). Miscellaneous Subrecipient Pass-Thru Transactions (82% of Budget) - This line item is lower than budget parameters through September. Actual Sub-Recipient Pass-Through Expenses were $359,136 whereas the annual Budget was $437,

23 ITEM V-A Subrecipient Pass-Thru transactional expenses are exactly offset by a specific line of federal revenues that are drawn down throughout the fiscal year. No income statement impact (revenues exceeding expense or expense exceeding revenues) occurs either quarterly or annually. Consequently, this line in the report is budget neutral. Interest Expense (76% of Budget) - This line item is favorably under Budget parameters through September. Amounts in this expense category are relatively immaterial. Leases and Rentals (45% of Budget) - Lower Regional Customer Service (Division 20) and VRT Overhead (Division 10) copier lease expenses account for the favorable variance. Capital: (46% of Budget) - Through September, lower levels of capital spending occurred in relation to capital carry-forwards and new capital projects scheduled in FY2018. It should be noted that the timing of capital projects throughout the year do not always align with how the Capital Budget is spread equally (monthly/quarterly) throughout the year. Often capital projects span multiple years requiring capital carryforward approvals by the Board. Revenue Vehicles & Subrecipient & Non-Revenue vehicles - Lower expense was incurred through September for these capital expense categories ($425,458). Typically, vehicle purchases involve fairly long timelines of approximately eighteen (18) months or so. The FY2017 Fixed Line and Demand Response vehicle purchases were delayed in order to more comprehensively analyze transit system vehicle needs. VRT Operations is now in a position to initiate the purchase of transit vehicles budgeted in this category. Regional staff are currently working on a vehicle procurement for Division 41. Sub-recipient revenue vehicles were purchased during the fiscal year in addition to a non-revenue vehicle (truck/snow plow) that was purchased for the Canyon County System. Shop/Other Equipment & Safety/Security & Fareboxes - Total expense through September for these capital expense categories was $291,937 whereas as the Budget through September was $488,000. Facility - Total expense thru the end of September was $79,022 whereas the annual Budget was $918,331. Expenses recognized in this line item were for parking lot enhancements at the Happy Day Transit Center. The Happy Day Transit Center capital budget for FY2018 will be carryforward to increase the FY2019 capital budget for facility improvement. HVAC/CNG construction will be completed in FY2019. Main Street Station (MSS) - Actual expenses were $51,987; whereas, the annual Budget was $76,103. This line item accumulates expenses for the Main Street Station center located on the corner of Main and Capital in Boise. Although this facility is currently being utilized, some residual expenses are still occurring after the construction period. 23

24 ITEM V-A IT Hardware & Software - Total expenses incurred through September were $106,574. This amount exceeds the total annual budget amount for these capital expense categories ($75,000) by $31,574. Upon further analysis, an IT capital carryforward should have been included in the FY2018 Carryforward process approved by the Board in January The FY2019 Carryforward process will include this adjustment. This overage was funded by available spending capacity within the FY2018 Capital Budget. Systems Enhancements Stops/Shelters - Total expense incurred through September was $36,272 whereas the annual Budget was $45,000. Bike & Pedestrian Improvements - Total expense incurred through September was $1,616,333 whereas the annual Budget was $1,853,861. Regional Park & Ride Projects - Total expense incurred through the end of September was $812,354 for the City of Middleton Park-N-Ride; whereas, the annual Budget was $552,622. This actual expense exceeds the total annual budget for this capital expense category by $259,732. Additional funds were added to the project to cover the cost overruns of the original budget due to the current construction atmosphere in our region. This Capital project spanned three (3) years with an additional $150,000 being added to the project after the FY2018 budget was finalized. The actual construction project was being billed out at the time of the FY2018 budget creation making it difficult to accurately project the cost for the year. While the FY2018 budget appears to have been projected too low, the Board provided authority for the construction portion of the effort to spend $990,000 under VBD and VEB However, this federal project and its associated grants in its entirety over 3 years is not over-budget. Additional controls are being evaluated by the Finance Department and the Development Department to avoid this issue in the future. Any overages are being covered in total budget capacity. The FY2019 Capital Carryforward process will include an adjustment to equate total 3-year project cost to what has been expensed to date. Capital Projects Subrecipients - Actual expense through September was $8,630. The timing of Subrecipient capital projects depends upon construction, procurement scheduling and NEPA turnaround by FTA. Unspent amounts will be requested to be carried forward into FY2019. Boise GreenBike Revenues Directly Generated Revenues (130% of Budget) - Revenues earned in this category through September were $87,306 whereas the annual Budget was $67,226. Local Operating Assistance - (69% of Budget) Lower amounts of revenues were recognized in this category due to lower expenses incurred in the system through September. 24

25 ITEM V-A Expenses Total Boise GreenBike System operating expenses are at 79.8% of Budget through September. Wages and Salaries (108% of Budget) - This line item is within just within budget parameters through September being at the upper end of the threshold range. This overage is being offset by lower actual expenses in Fringe Benefits and Professional Services. Fringe Benefits (81% of Budget) - This line item was favorable on a net basis through September. The largest line items within this category that have been driving this favorable variance were Health ($12,559), Workers Compensation ($3,001), Misc. Earnings Admin ($1,649) which contain vacation and sick time utilized, and Disability/Life ($136). Healthcare expenses for the new Bike Technician did not start until January of 2018; although the Budget was established based upon a full fiscal year. These favorable variances were partially offset by two unfavorable variances in Retirement (-$1,740) and FICA (-$1,067). Professional Services (28% of Budget) - Lower spending has occurred than what was budgeted through September on Advertising ($37,094), Professional & Technical ($31,875), Legal ($4,230), Other Services ($1,671) and Background-Drug Screen Services ($390). These favorable variances were partially offset by an unfavorable variance in Contract Labor ($329). Material and Supplies (172% of Budget) - Higher spending on Bike Parts (-$10,989), Fuel (-$794), Minor Equipment (-$580) and Office Supplies (-$168). These unfavorable variances were partially offset by lower spending on Printing & Binding ($1,462), resulting in a net unfavorable variance in this expense category. This unfavorable variance is being covered by favorable variances in other expense categories. Utilities (83% of Budget) - In FY2018 all utilities were covered by the monthly rental amount of the space lease. The only line item being expensed in this category is Cellular Telephone charges that was under-budget by $502 through September. Casualty Insurance (100% of Budget) - This line item is within budget parameters. Miscellaneous (73% of Budget) - All line items within Miscellaneous Expense (Travel/ Training, Other Exp., and Bank Charges) were below their established annual Budget. Leases and Rentals (99% of Budget) - This line item is within budget parameters. 25

26 ITEM V-A VALLEY REGIONAL TRANSIT FY2018 FOURTH QUARTER BUDGET REPORT OCTOBER SEPTEMBER 2018 Ada County System Canyon County System Regional Boise GreenBike Category Budget Actual % Variance Budget Actual % Variance Budget Actual % Variance Budget Actual % Variance Directly Generated Revenues $ 716,052 $ 707,582 99% $ 169,651 $ 153,690 91% $ 65,800 $ 15,517 24% $ 67,226 $ 87, % Special Transit Fares 18,084 22,641 Auxiliary Revenues 65,717 96, % 9,806 31, % Non-Transportation Revenues 185, , % 28-31,025 Federal Operating Assistance 2,528,867 2,060,732 81% 982, ,406 93% 3,128,491 2,644,297 85% Federal Capital Assistance 7,010,877 3,550,949 51% Local Operating Assistance 5,499,466 5,347,803 97% 584, , % 2,047,209 1,979,163 97% 300, ,807 69% Local Capital Assistance 854, ,345 43% TOTAL REVENUE $ 8,995,334 $ 8,420,970 $ 1,746,885 $ 1,798,052 $ 13,106,625 $ 8,587,296 $ 367,335 $ 293,112 Wages and Salaries $ 3,326,685 $ 3,486, % $ 766,100 $ 737,366 96% $ 1,237,807 $ 1,164,151 94% $ 117,963 $ 127, % Fringe Benefits 3,279,111 3,011,099 92% 143, , % 812, ,607 92% 76,644 62,107 81% Professional Services 500, , % 247, ,612 83% 1,538,483 1,080,678 70% 103,928 28,996 28% Materials and Supplies 1,005, ,479 88% 348, , % 77,990 82, % 15,300 26, % Utilities 137, ,807 99% 34,220 50, % 109,327 66,248 61% 3,000 2,498 83% Casualty and Liability Insurance 480, ,423 60% 167, ,719 98% 67,711 62,980 93% 5,000 5, % Purchased Transportation 1,151,673 1,072,047 93% Miscellaneous 154,810 86,533 56% 30,750 9,756 32% 217, ,945 58% 15,500 11,238 73% Miscellaneous - Subrecipient Pass-thru 437, ,136 82% Interest 5,533-0% % Leases and Rentals 110, ,626 96% 3,950-0% 28,508 12,690 45% 30,000 29,638 99% Capital (Note 3) - - 7,428,125 3,428,566 46% TOTAL EXPENSE $ 8,995,334 $ 8,542,877 $ 1,746,885 $ 1,763,987 $ 13,106,624 $ 8,204,170 $ 367,335 $ 293,112 Check #'s ,747 - Note 1: Variance percentages shown as whole percentages. Note 2: No percentage shown for null data or situations where division is by zero. Note 3: Total gross capital expense. Capitalizaiton accounting entry added back. 26

27 ITEM V-B TOPIC: Operating Cash Balance Report - FY2018 Qtr. 4 (Year-End) DATE: November 13, 2018 Cash Position Overview at Fiscal Year-End Attached to this memo is the Operating Cash Balance Report as of September 30, No Funds in Float existed in any system at fiscal year-end. The cash position improved between September 2018 and September This year, the Authority had just enough cash in the bank to make it to the point when it received the FY2019 first half payment from the City of Boise without deferring the processing of September invoices for payment. At the end of FY2017, the Authority ran out of cash during the first week of September and had to defer paying invoices that were due and payable until it received the City s payment during the first week of October The pick-up in cash position was approximately three (3) weeks of liquidity. This increase in liquidity can be attributed to lower expenses (lower cash outflows) in the Ada County and Regional Systems in FY2018. The following items are identified: Regional Operating Cash Balance was $440,300 at fiscal year-end. The Regional Cash balance improved, exceeding the Cash Balance Benchmark by 138%. It should be noted that approximately $351,272 of cash in this balance is restricted - being earmarked for specific initiatives and not available for discretionary spending. The Ada County System Operating Cash Balance was $134,088 at fiscal year-end. The Cash Balance far exceeded the Benchmark (prior 3-year average at September) by 1466%. This system has had exceeding low balances at the end of September. The Canyon County System Operating Cash Balance was $138,043 at fiscal year-end. The balance in Cash trailed the Cash Balance Benchmark by 28%. Liquidity in the Canyon County System is challenging and highly dependent upon grant execution. Boise GreenBike Operating Cash Balance was $118,059. The operating cash balance at the end of September is higher than the Cash Balance Benchmark for the System. It should be noted that the three (3) year average is depressed since Regional had to borrow cash from the Boise GreenBike system at the end of FY2017, artificially lowering the cash balance. The funds were repaid in October Staff Recommendation/Request: Request the Executive Board will review and accept the FY2018 Fourth Quarter Cash Balance Report. Attachments: FY2018 Fourth Quarter Cash Balance Report For detailed information contact: Kelli Badesheim, Executive Director, , kbadesheim@valleyregionaltransit.org. 27

28 ITEM V-B VALLEY REGIONAL TRANSIT OPERATING CASH BALANCE ANALYSIS September 30, 2018 Regional Operations GL Cash Balance at 9/30/2018 $ 440,300 Funds in Float Operating Cash Balance $ 440,300 Cash Balance Benchmark (Note 1) $ 184,862 Ada County System GL Cash Balance at 9/30/2018 $ 134,088 Funds in Float Operating Cash Balance $ 134,088 Cash Balance Benchmark (Note 1) $ 8,560 Canyon County System GL Cash Balance at 9/30/2018 $ 138,043 Funds in Float Operating Cash Balance $ 138,043 Cash Balance Benchmark (Note 1) $ 190,743 Boise GreenBike GL Cash Balance at 9/30/2018 $ 118,059 Funds in Float Operating Cash Balance $ 118,059 Cash Balance Benchmark (Note 1) $ 64,481 Note 1: Average of 2017, 2016 and 2015 balance at September 30th. 28

29 ITEM V-C TOPIC: Local Cost Allocation Methodology DATE: November 20, 2018 Summary: Valley Regional Transit (VRT) completed an annual budget that includes a revenue request to each of the local governments to support the expenses for our regional overhead and direct services. The methodology for the local allocation was established in The methodology is as follows: Regional assessment Per capita rate charged for each jurisdiction based on non-duplicated population within each jurisdiction. Jurisdictions with duplicated population (ACHD and Canyon Highway Districts) and special members pay negotiated rates. Service allocation Contribution based on a combination of service miles and stops within the local jurisdiction where the services are provided. Capital and maintenance reserve expenses are not included in the service allocation. The FY2018 financial analysis recommended updating the local allocation methodology to ensure a transparent and defensible process that demonstrates jurisdictions are covering fully-loaded costs for the services including overhead, capital, and maintenance reserve. VRT staff presented this item to the Executive Board in November. One of the comments in that discussion was to establish a process that would make the allocation a true cost-benefit allocation. This would be a way to tell the story of public transportation in the region. Additionally, a better approach would be to consider having the local governments establish a percent rate from their general fund to allocate to public transportation each year. Staff agrees this would be a desirable approach in terms of ease of administration and providing a more predictable and consistent funding stream. My only concern is I don t think we can do an adequate job to establish that approach in time for the FY2020 budget development cycle. Staff will be providing a comparison of the FY2019 request using the current allocation approach and the recommended allocation approach. We will use this in our outreach to local governments over the next several weeks as we start to evaluate the revenue we anticipate for the FY2020 budget cycle. Staff Recommendation/Request: Staff recommends the VRT Executive Board accept the local allocation methodology presented by staff at the November meeting and request the Executive Board direct 700 NE 2nd Street, Suite 100 Meridian, ID p: f:

30 ITEM V-C staff to seek input from the local governments on the methodology to inform the final decision by the Executive Board in February. Implication (policy and/or financial): An updated local allocation methodology will provide a more transparent allocation process that will be easier to explain to local jurisdictions. The allocation methodology will also provide for a more equitable allocation of overhead, capital, and maintenance costs across all jurisdictions. This will help the Board and local governments understand the actual costs of services and lead to better informed decision-making. Covering the full costs of services, including capital and maintenance, will lead to a more sustainable system and lower future operating costs if equipment is replaced and maintained more proactively. Highlights: Financial analysis and recommendations adopted in July 2018 ValleyConnect 2.0 allocation methodology was presented in June 2018 Executive Board will consider releasing the proposed local allocation methodology to the local governments for comment. The VRT Board will consider adopting the new funding allocation in January The new methodology will be used to develop the FY2020 budget requests early in More Information: Cost Allocation Methodology Handout For detailed information contact: Stephen Hunt, Principal Planner, (208) , shunt@valleyregionaltransit.org 30

31 Cost Allocation Methodology ITEM V-C The proposed cost allocation methodology creates three categories to ensure that all costs are appropriately allocated. Those categories and definitions are as follows; 1. General Assessment: All overhead that cannot be directly associated with service levels or special projects 2. Special Allocation: Any specific project (capital or service) outside the base budget and their associated overhead 3. Service & Capital Allocation: General/Base public transportation service and associated capital costs Once the total need is identified there are three basic steps to the proposed cost allocation methodology; Identify Local Share 1. Total budget by division and Department 2. Subtract expected federal share by division and department 3. Subtract expected directly generated funds by division and department 4. Identify local share needed by division and department Categorize Costs 1. Identify how much of the local share by division and department will need to be categorized as General Assessment, Special Allocation or Service & Capital Allocation 2. Categorize costs into General Assessment, Special Allocation or Service & Capital Allocation Distribute Costs 1. General Assessment includes all overhead that cannot be directly associated with service levels or special projects. Overhead associated with service levels or special projects would be accounted for in either the Special Allocation or Service & Capital Allocation (need to identify the divisions and departments covered with the General Assessment) 2. General Assessments would be allocated based on the jurisdictions share of the regional population for those partners with populations 3. General Assessments for partners without populations would be based on percent of the total General Assessment budget 4. Special Allocations would be negotiated based on specific projects and their associated overhead. These special allocations would include capital projects and directly purchased transportation services. These could be paid by any type of partner 5. Service & Capital Allocations would be based on the share of service within each jurisdictions boundaries. Service and Capital Allocations would not apply to those partners without jurisdictional boundaries. Those partners would contribute via General Assessments and Special Allocations 6. Identify each partners requested contribution categorized as General Assessment, Special Allocation, and/or Service & Capital Allocation 31

32 Cost Allocation Methodology Diagram ITEM V-C The diagram below illustrates how the proposed allocation of Valley Regional Transit s costs will take place over the course of each fiscal year and inform the following actions: Quarter 1: Cost Allocation 1. Annual funding requests 2. Annual Revenue Projections 3. Annual Budget Service Performance ValleyConnect 2.0 Local Priorities RIDES (THOUSANDS) QUARTERLY FISCAL YEAR Δ% FR DR ST VP BS Total 454 Total Need 1. Identify Local Share 2. Categorize Costs 3. Distribute Costs Across Partners Partner Highway Districts Counties Cities Development Corporations Universities Other Funding Partners % Share XX% XX% XX% XX% XX% XX% Quarter 2: Annual Funding Requests Quarter 3: Annual Revenue Projections Quarter 4: Finalize and Approve Annual Budget 32

33 ITEM VI-A-1 AUTHORIZATION FOR EXPENDITURE VRT EXECUTIVE BOARD APPROVAL PROCUREMENT DESCRIPTION: TOTAL COST: $75, Service Change Sign Work PURPOSE/ACTION: VRT s objective is to hire a sign work contractor to provide sign adjustments and related work as necessary for the 2019 service changes. SCOPE OF WORK: The contractor shall provide sign installation and removal services for the 2019 service changes not to exceed $75,000 with a completion date of May 31, DISCUSSION: VRT uses contractors to provide sign installation and adjustment services as needed for the transit network. When service changes occur, there are usually a large number of signs that need to be adjusted, relocated, added, or removed. Currently for the 2019 service changes, the work will involve a notable number of signs. This effort is currently out for bid with the results expected a few days before the December Executive Board meeting. In general, these services have come in costing less than $50,000 requiring Executive Director approval. In this case and for this service change however, it is expected that the bids will come in somewhere between 55k and 70k. If the bids come in less than 50k this item will be removed from the Executive Board packet, but as it stands with the chance of needing Executive Board approval, it has been included here with the actual bid amount and contractor name to be provided the day of the Executive Board meeting. ALTERNATIVES: Not hiring this sign provider will cause undue delays to the project, costing the project and the network additional dollars and time. This project is necessary for the safe and effective transition of services for the upcoming January service change. FISCAL IMPACT: Funding for this project is included in the FY2019 budget per Resolution VBD approved 07/09/18 by the VRT Board of Directors. RECOMMENDATION/JUSTIFICATION POST RFP/FINAL SELECTION OF PROJECT: Valley Regional Transit staff has followed federal procurement guidelines and VRT s policy for procuring services. Staff will determine the most responsive and responsible bidder and provide that information at the December 3, 2018 Executive Board Meeting. Staff recommends that the Executive Board approve Resolution VEB for the 2019 service change sign work, not to exceed $75,000. ROUTING # ORDER OF REVIEW DATE APPROVED RESOLUTION # 1 EXECUTIVE DIRECTOR Up to $49,999 2 EXECUTIVE BOARD Approves procurements over $50,000 to $200,000 3 VRT BOARD Approves procurements $200,000 and over On agenda 12/03/18 VEB NE 2nd Street, Suite 100 Meridian, ID p: f:

34 ITEM VI-A-1 EXECUTIVE BOARD RESOLUTION 2019 Service Change Sign Work RESOLUTION VEB BY THE EXECUTIVE BOARD OF VALLEY REGIONAL TRANSIT APPROVING A CONTRACT WITH MOST RESPONSIVE, RESPONSIBLE VENDOR FOR SIGN WORK AND RELATED SERVICES INVOLVED IN CREATING THE INFRASTRUCTURE NEEDED FOR THE 2019 SERVICE CHANGES WHEREAS, pursuant to Idaho Code, Chapter 21, Title 40, and as a result of the approval of the voters of Ada and Canyon Counties on November 3, 1998, a regional public transportation authority (now known as Valley Regional Transit ) was created to serve Ada and Canyon counties; and WHEREAS, Idaho Code (1) confers to Valley Regional Transit, as a regional public transportation entity, exclusive jurisdiction over all publicly funded or publicly subsidized transportation services and programs except those transportation services and programs under the jurisdiction of public school districts and law enforcement agencies within Ada and Canyon Counties; and WHEREAS, Idaho Code (2) and (5) provide that Valley Regional Transit, as a regional public transportation entity, has power to raise and expend funds as provided in Idaho Code Chapter 21, Title 40 and to make contracts as may be necessary or convenient for the purposes of the Regional Public Transportation Authority Act; and WHEREAS, VRT has identified a need for sign installation and adjustment services for the 2019 service changes; and WHEREAS, the contract for this procurement will be through May 31, 2019 for an amount not to exceed $75,000 total expended over the horizon of the contract; and WHEREAS, funding for this procurement is available in the FY2019 budget Resolution VBD aproved on 07/09/18; and WHEREAS, the Valley Regional Transit staff completed a competitive procurement process through a Request for Bid as required in the VRT Procurement Policies adopted by the Valley Regional Transit Board of Directors by Resolution VBD on 01/09/17 and updated by Resolution VBD on 09/25/17, and in compliance with all local and FTA requirements; and WHEREAS, staff determined that the noted firms are the most responsive and responsible bidders that provide the best value to meet VRT s needs; and VEB

35 ITEM VI-A-1 WHEREAS, Idaho Code (5) provides that the Board of Valley Regional Transit may adopt resolutions consistent with law, as necessary, for carrying out the purposes of Chapter 21, Title 40, Idaho Code and discharging all powers and duties conferred to Valley Regional Transit Pursuant to Chapter 21, Title 40; and WHEREAS, the Board of Valley Regional Transit has created an Executive Board, conferring specific authority upon it to discharge its powers, pursuant to Resolution VBD NOW THEREFORE, BE IT RESOLVED BY THE EXECUTIVE BOARD OF VALLEY REGIONAL TRANSIT: Section 1. That the Executive Board approves a contract with the most responsive, responsible contractor for sign work and related services for the 2019 service changes for $75,000 through May 31, Section 2. That the Executive Board delegates authority to the Executive Director to finalize and execute the contract. Section 3. That this resolution shall be in full force and effective immediately upon its adoption by the Executive Board of Valley Regional Transit and its approval by the Executive Board Chair. ADOPTED by the Executive Board of Valley Regional Transit, this 3 rd day of December, APPROVED by the Executive Board Chair this day of, ATTEST: APPROVED: EXECUTIVE ASSISTANT CHAIR OF EXECUTIVE BOARD VEB

36 ITEM VI-A-2 TOPIC: Infrastructure Bus Bench Revenue Generating Advertising DATE: November 15, 2018 Summary Staff has procured bus bench provider services including advertising, similar to what has been in use in the past. The existing bus bench provider service contract expires in 2019, so a competitive procurement process was under taken in late 2018 to update and re-evaluate those services. The procurement process garnered a single response from the existing bench provider. As such, there is no bid tabulation included here. A new contract is currently being negotiated and will go into effect in early Additional contract terms and conditions to assist in passenger amenities were included in the contract negotiations, based on partner and staff comments. Contract Under Discussion The new contract will be with Creative Outdoor Advertising for an additional five (5) years, with an optional five (5), one (1) year extensions. Contract will be for additional revenue provided to VRT in return for provided bench infrastructure, so no Authorization for Funding Expenditure is required. Suggested Resolution: Staff recommends that the Executive Board approve Resolution VEB for the contract with Creative Outdoor Advertising for five (5) years with a possible five (5) additional one (1) year extensions to provide bus benches and transit amenities, as well as associated advertising revenue. More Info: Jacob Hassard, Capital Infrastructure Projects Manager (208) , jhassard@valleyregionaltransit.org 700 NE 2nd Street, Suite 100 Meridian, ID p: f:

37 ITEM VI-A-2 EXECUTIVE BOARD RESOLUTION Bus Bench Revenue Generating Advertising RESOLUTION VEB BY THE EXECUTIVE BOARD OF VALLEY REGIONAL TRANSIT APPROVING A CONTRACT WITH CREATIVE OUTDOOR ADVERTISING FOR BENCH, AMENITY, AND RELATED SERVICES IN THE VALLEY REGIONAL TRANSIT SERVICE AREA WHEREAS, pursuant to Idaho Code, Chapter 21, Title 40, and as a result of the approval of the voters of Ada and Canyon Counties on November 3, 1998, a regional public transportation authority (now known as Valley Regional Transit ) was created to serve Ada and Canyon counties; and WHEREAS, Idaho Code (1) confers to Valley Regional Transit, as a regional public transportation entity, exclusive jurisdiction over all publicly funded or publicly subsidized transportation services and programs except those transportation services and programs under the jurisdiction of public school districts and law enforcement agencies within Ada and Canyon Counties; and WHEREAS, Idaho Code (2) and (5) provide that Valley Regional Transit, as a regional public transportation entity, has power to raise and expend funds as provided in Idaho Code Chapter 21, Title 40 and to make contracts as may be necessary or convenient for the purposes of the Regional Public Transportation Authority Act; and WHEREAS, VRT has identified a need for bus stop benches and associated amenities; and WHEREAS, the contract for this procurement will be for five (5) years with an optional additional five (5), one (1) year extensions; and WHEREAS, funding provided by this agreement will be added to additional out year budgets as needed; and WHEREAS, the Valley Regional Transit staff completed a competitive procurement process through a Request for Proposal as required in the VRT Procurement Policies adopted by the Valley Regional Transit Board of Directors by Resolution VBD on 01/09/17 and updated by Resolution VBD on 09/25/17, and in compliance with all local and FTA requirements; and WHEREAS, as part of the noted competitive procurement process, staff determined that the responding firm is the most responsive and responsible offeror to provide the best value to meet VRT s needs; and VEB

38 ITEM VI-A-2 WHEREAS, Idaho Code (5) provides that the Board of Valley Regional Transit may adopt resolutions consistent with law, as necessary, for carrying out the purposes of Chapter 21, Title 40, Idaho Code and discharging all powers and duties conferred to Valley Regional Transit Pursuant to Chapter 21, Title 40; and WHEREAS, the Board of Valley Regional Transit has created an Executive Board, conferring specific authority upon it to discharge its powers, pursuant to Resolution VBD NOW THEREFORE, BE IT RESOLVED BY THE EXECUTIVE BOARD OF VALLEY REGIONAL TRANSIT: Section 1. That the Executive Board approves a contract with Creative Outdoor Advertising to provide bus bench and related amenities for five (5) years with an optional five (5), one (1) year extensions. Section 2. That the Executive Board delegates authority to the Executive Director to finalize and execute the contract. Section 3. That this resolution shall be in full force and effective immediately upon its adoption by the Executive Board of Valley Regional Transit and its approval by the Executive Board Chair. ADOPTED by the Executive Board of Valley Regional Transit, this 3 rd day of December, APPROVED by the Executive Board Chair this day of, ATTEST: APPROVED: EXECUTIVE ASSISTANT CHAIR OF EXECUTIVE BOARD VEB

39 ITEM VI-B TOPIC: Transit Asset Management Plan DATE: November 15, 2018 Summary: VRT and planning partners have been working on the Transit Asset Management Project. Scoring of the public transportation assets for FY17 & FY18 has been completed. Targets have been generated from these scorings and submitted to COMPASS and FTA. The Transit Asset Management (TAM) Policy was approved September 24, 2018 by the VRT Board of Directors. VRT has been acknowledged as the Group TAM Plan Sponsor for public transportation for Ada and Canyon counties by the FTA on September 28, FY19 VRT capital plan was largely based off of the asset scorings from FY18. Scoring of assets for FY19 is ongoing. The TAM Policy and Plan will have the same elements. The elements are: asset inventory, scoring, and management approach which is a decision support tool and investment prioritization. The public transportation provider group met in October and November to review and discuss the TAM Plan Management Approach which includes the Decision Support and Investment Prioritization. This section was revised after much discussion from the group and staff. It was determined to include only existing assets in the investment prioritization in the TAM Plan. New assets or enhancements will be discussed at Board meetings when the capital projects are being proposed, reviewed, and determined by the VRT Executive Board and Board of Directors. Also, it was determined not to allow for the application process. All projects should either be replacement of assets or be included in ValleyConnect 2.0, which references programs and projects from all of the jurisdictions within the region. Staff Recommendation/Request: Action item: Staff will present the final draft of the Transit Asset Management Plan for review and recommendation of approval by the Executive Board to the VRT Board of Directors. Implication (policy and/or financial): The policy and strategies for Transit Asset Management and State of Good Repair will be used to inform the Regional Public Transportation Capital Improvement Plan (CIP), Transportation Improvement Program (TIP), and the Program of Projects (POP). 700 NE 2nd Street, Suite 100 Meridian, ID p: f:

40 ITEM VI-B Highlights: July 2018 VRT Board of Directors Information Item Transit Asset Management Policy September 2018 Action Item Approve Transit Asset Management Policy November 2018 Information Item Transit Asset Management Plan December 2018 Action Item Transit Asset Management Plan More Information: Rhonda Jalbert, Development Director, , FTA Target Dates for Transit Asset Management If your fiscal year ends: June 30 Sept 30 Dec 31 Share initial targets with planning partners July2017 Report FY17 Asset Inventory Module (AIM) data to NTD Submit targets for FY18 to NTD (optional) Oct 2017 Jan 2018 Apr 2018 Complete compliant TAM Plan (1st required) Share TAM Plan with planning partners Oct 2018 Report FY18 AIM data to NTD (1st required) Submit targets for FY19 to NTD (1st required) Oct 2018 Jan 2019 Apr 2019 Report FY19 AIM data to NTD Submit targets for FY20 to NTD Submit narrative report to NTD (1st required) Oct 2019 Jan 2020 Apr 2020 Report FY20 AIM data to NTD Submit targets for FY21 to NTD Submit narrative report to NTD Oct 2020 Jan 2021 Apr 2021 Complete Updated TAM Plan Share TAM Plan with planning partners Oct

41 ITEM VI-B TRANSIT ASSET MANAGEMENT GROUP PLAN 11/16/2018 Group Sponsor - Valley Regional Transit 41

42 ITEM VI-B Contents Transit Asset Management Group Plan CHAPTER 1 INTRODUCTION TO TRANSIT ASSET MANAGEMENT... 2 Transit Asset Management Purpose... 2 Transit Asset Management and State of Good Repair Policy Requirements... 2 How will Transit Asset Management Help the Region... 3 About the Group TAM Plan... 4 CHAPTER 2 ASSET INVENTORY PORTFOLIO... 5 Asset Portfolio Summary:... 5 CHAPTER 3 CONDITION ASSESSMENT... 7 Asset Condition... 7 Asset Condition Scoring Criteria Guidance... 7 Asset Condition Inspection Guidance... 7 CHAPTER 4 MANAGEMENT APPROACH... 8 Decision Support... 8 Investment Prioritization... 8 Setting Performance Targets for Capital Assets... 9 CHAPTER 5 REPORTING Reporting Asset Scoring, Performance Targets & Measures Reporting Schedule and Required Information CHAPTER 6 CLOSING APPENDICES & EXHIBITS Exhibit A Roles and Responsibilities Exhibit B FTA Useful Life Guidelines Exhibit C Asset Categories Exhibit D Scoring Criteria Guidance Exhibit E Score Sheets Templates Exhibit F Acronyms Exhibit G Assets Page 1 42

43 ITEM VI-B Transit Asset Management Group Plan CHAPTER 1 INTRODUCTION TO TRANSIT ASSET MANAGEMENT Transit Asset Management Purpose The purpose of developing the Valley Regional Transit (VRT) Group Transit Asset Management (TAM) Plan is to aid Valley Regional Transit Board of Directors as the Regional Public Transportation Authority for Ada and Canyon counties in achieving and maintaining a state of good repair (SGR) of all public transportation assets for the region. SGR is the condition in which a capital asset is maintained and able to operate at a full level of performance. This means that the asset: 1. Is able to perform its designed function, 2. Does not pose a known unacceptable safety risk, and 3. Its lifecycle investments have been met or recovered. Transit Asset Management and State of Good Repair Policy Requirements The Moving Ahead for Progress in the 21st Century Act (MAP-21) required the Secretary of Transportation to develop rules to establish a system to monitor and manage public transportation assets to improve safety and increase reliability and performance, and to establish performance measures. The Fixing America s Surface Transportation (FAST) Act reaffirmed this requirement. On July 26, 2016, FTA published the Transit Asset Management (TAM) Final Rule. Transit Asset Management is the strategic and systematic practice of procuring, operating, inspecting, maintaining, rehabilitating, and replacing transit capital assets to manage their performance, risk, and costs over their life cycles for the purpose of providing safe, cost-effective, and reliable public transportation. TAM uses transit asset condition to guide how to manage capital assets and prioritize funding to improve or maintain a state of good repair. The Final Rule groups providers into two categories: Tier I and Tier II. Tier I providers own, operate, or manage: rail, more than 100 vehicles across all fixed-route modes, or more than 100 vehicles in one non-fixed route mode. Tier II providers are subrecipients of 5311 funds, or an American Indian Tribe, or own, operate, or manage less than 101 vehicles across all fixed route modes, or less than 101 vehicles in one non-fixed route mode. The TAM rule requires every transit provider that receives federal financial assistance under 49 U.S.C. Chapter 53 to develop a TAM plan or be a part of a group TAM plan prepared by a sponsor, e.g. Valley Regional Transit, Idaho Transportation Department Public Transportation, etc. All TAM plans must contain: An inventory of assets A condition assessment of inventoried assets Management Approach o Documentation of the use of a decision support tool o A prioritization of investments Formatted Tier II providers may develop their own plans or participate in a group plan such as VRT s Group TAM Plan. Regardless of whether an agency develops its own TAM Plan or choses to participate in a group plan, each transit agency must designate an Accountable Executive to ensure that the necessary resources are available. There are 4 transit agencies in Ada and Canyon counties that operate within the VRT region: Valley RideRegional Transit, Ada County Highway District (ACHD) Commuteride, Boise State Shuttle & and Treasure Valley Transit (TVT). Since VRT and Idaho Transportation Department - Public Transportation (ITD-PT) are Page 2 43

44 ITEM VI-B Transit Asset Management Group Plan direct recipients of federal funds, both are required to have and offer Group Transit Asset Management Plans. ITD-PT has an independent sponsored Transit Asset Management (TAM) plan, that data is not included in this Group TAM Plan. It is the expectation of VRT to have the support and feedback of Community Planning Association of Southwest Idaho (COMPASS), the Metropolitan Planning Organizations (MPO) and providers to define, implement, enhance and achieve the goals of the VRT Group TAM Plan set by the VRT Board of Directors. Each agency participating in VRT s Group TAM Plan (see Exhibit A - Roles and Responsibilities) will provide a written statement of participation from their designated Accountable Executive. An Accountable Executive is a single, identifiable individual within a transit agency who has direct control over the resources needed to implement an agency s safety plan and transit asset management practices, and who is responsible for the implementation of both of those requirements. Participants choosing to opt-out of the VRT Group TAM Plan must notify VRT no later than 12 months prior to the next TAM plan due date. Providers cannot participate in more than one (1) TAM Plan. VRT Group TAM Plan will be reviewed and updated accordingly, at minimum, every four years, which is equivalent to the Horizon Period. How will Transit Asset Management Help the Region Transit Asset Management (TAM) is the strategic and systematic practice of procuring, operating, inspecting, maintaining, rehabilitating, and replacing transit capital assets to manage their performance, risks, and costs over their life cycles to provide safe, cost-effective, and reliable public transportation. TAM uses transit asset condition to guide how to manage capital assets and prioritize funding to improve or maintain a state of good repair. Some of the ways TAM can help us address safety are: Reducing potential injuries or fatalities due to poor conditions, maintenance issues, or unexpected breakdowns Preventing, mitigating, responding, and recovering from emergency or adverse events Being prepared to take advantage of new technology and innovations Some of the ways TAM can help us address operations are: Decreasing risk through proactive rather than reactive spending Prioritizing activities to realize more value from physical assets Optimizing maintenance planning and preventing backlogs Leveraging existing knowledge and expertise Reducing risk of breakdowns behind the scenes (e.g. maintenance facilities or computer systems) that can impact operations. Not all needed investments will be flashy Some of the ways TAM can help us address customer service/reliability are: Reducing unexpected delays in service, lost trips by identifying systemic failures Improving condition of stations and vehicles for cleanliness, customer experience Enhancing relationship and reputation with customer, stakeholders, and the media Some of the ways TAM can help us save time, money, and resources are: Optimizing return on investment Understanding and managing our asset portfolio effectively Page 3 44

45 ITEM VI-B Transit Asset Management Group Plan Meeting pressure to deliver at lower costs Matching agency goals, priorities, and needs with actual spending/funding requests and project planning Investing in additional staff and time is a small expenditure to better allocate the entire budget, as it leads to overall life-cycle savings and ability to further invest back into the assets Reducing costs of managing assets over the course of their lives Preserving asset value thinking about assets as money, and handling with responsibility Identifying projects that can be cancelled or postponed Bringing together these efforts in a more strategic, intentional way with data and evidence-based decision-making About the Group TAM Plan The Group TAM Plan contains four major components; the Asset Inventory Portfolio, the Condition Assessment, the Management Approach, as well as the Work Plans and Resources section. The Asset Inventory Portfolio provides guidance to plan participants on what assets are considered capital assets that support the delivery of public transportation services in Ada and Canyon counties. The Condition Assessment section includes the guidance on scoring capital assets included in the Group TAM Plan and how the actual conditions compare to the targets set for each asset category. The Management Approach will break out the information supporting the decision making process, investment prioritization, risk management considerations, and strategies for maintenance, overhaul, disposal, acquisition, and renewal. The Work Plans and Schedule section outlines the proposed investments and any applicable capital investment activity schedules. Page 4 45

46 ITEM VI-B Transit Asset Management Group Plan CHAPTER 2 ASSET INVENTORY PORTFOLIO The asset inventory process is the approach a transit agency takes in maintaining a register/portfolio of the assets it owns or is responsible for maintaining. An asset inventory is the first step in organizing and managing asset information. This plan emphasizes the importance of having a process to determine what should constitute the asset inventory, how the inventory should be organized, and the critical information that is needed to manage the items in the asset inventory over their lifecycle. FTA regulations require all providers to include the appropriate inventory of their assets used to provide public transportation, and a condition assessment of the assets for which it has direct capital responsibility in its asset management plan. Regardless of an agency s asset management maturity, the inventory process is foundational. Asset management uses data from the inventory, including descriptive characteristics (such as estimated useful life, estimated remaining useful life, location, year of purchase, cost, quantity, condition, and maintenance history) to support decision-making. The asset inventory process provides data that can be used to support asset class specific business processes (for example, comparing effectiveness of various maintenance practices on one asset class) and enterprise-level business processes (for example, capital programming and operations and maintenance budgeting). These processes require the integration and use of data from multiple sources. The asset inventory is structured to include a hierarchy of assets that comprise a specific asset class. The asset inventory and the associated asset hierarchy can provide the common basis for integrating this information and using it for multiple purposes across the agency. The first step in developing and maintaining an Asset Inventory Portfolio is to inventory all fixed and real property assets on an annual basis for which the provider has direct capital responsibility. The final rule, 49 CFR Parts 625 and 630, requires that a transit provider include in its asset inventory all equipment, rolling stock, facilities, and infrastructure that it owns. Once an asset becomes a part of a transit provider's capital program, the transit provider must comply with the final rule's condition assessment, target setting (if applicable), and investment prioritization requirements. See Exhibit C Asset Categories Asset Portfolio Summary: Rolling Stock Participating agencies will list each of their Rolling Stock inventory by fleet and by mode that they operate as revenue vehicles. Rolling stock must only include those vehicles for which an agency has full or partial capital replacement responsibility. Equipment Equipment will be listed based on the number of service vehicles that they operate. Each agency will categorize the equipment for each applicable vehicle type: Automobiles, Trucks and Other Rubber Tire Vehicles, and Steel Wheel Vehicles A provider may exclude from its asset inventory any equipment with an acquisition value of less than $50,000, unless the equipment asset is a service vehicle or if that asset will be included in a capital Program of Projects. Therefore, if a transit provider has direct capital responsibility for any asset that is currently included in its program of capital projects or an asset that the provider can reasonably anticipate it will Page 5 46

47 ITEM VI-B Transit Asset Management Group Plan include in its program of capital projects during the TAM plan horizon period. Inventory for service vehicles must only include those vehicles for which an agency has full or partial capital replacement responsibility. Please note, the Equipment category for reporting performance targets to FTA does not include equipment that agencies own or use outside of service vehicles. VRT Group TAM Plan does require that all participating providers will score all equipment that could be included in a Program of Projects. VRT does score and analyze other types of equipment for capital planning, e.g. Information Technology assets, shop equipment, bike equipment, and Administration assets. Facility Facility inventory will be classified according to FTA requirements: o Passenger/Parking Facilities o Administrative/Maintenance Facilities Please reference the FTA Facilities Guidebook for more information. Inventory of facilities must only include those for which an agency has full or partial capital replacement responsibility. Infrastructure Transit agencies that operate or manage rail modes will report inventory for the track segments with performance restrictions. For each rail mode requires an individual score. Infrastructure scores only include track for which an agency has full or partial capital replacement responsibility. (Note: At this time there are no Infrastructure Assets within Ada and Canyon counties purchased or operated with FTA funding.) Page 6 47

48 ITEM VI-B CHAPTER 3 CONDITION ASSESSMENT Transit Asset Management Group Plan Asset Condition Asset Condition is a key component in a Transit Asset Management Plan. The overall condition rating will become the State of Good Repair (SGR) score for an asset. The purpose of the National TAM System is to tackle the Nation's growing SGR backlog by improving the condition of transit assets. The initial indicator of declining condition, SGR Score, will be used to inform decisions on asset replacement. Asset Inventory will be scored annually and presented to the Asset Management Lead. The Asset Management Lead will then analyze and categorize the asset inventory according to score, category and agency. Performance Targets and Measures will be proposed to the VRT Board of Directors for review, comment and approval. Asset Condition Scoring Criteria Guidance In order to ensure consistency and accuracy, all assets will be scored on an average of at least two (2) criterions, with age always being one (1) of the criterion. Listed below are the criterions for which an asset may be scored: Age will be scored based on percentage of useful life remaining. Useful life will be determined by Federal Transit Administration Circular D, GAAP Guidelines and/or Industry Standards. See Attachment A for the Useful Life Standards. Mechanical/Technical scoring is based on how close an asset or component is to replacement or major overhaul. Scores will not have a greater granularity than a half point. Refer to individual asset group inspection Standards Documents for confidence in reliability and specific examples. Appearance scoring is based on how an asset or component appears visually. Scores will not have a greater granularity than a half point. Refer to individual asset group inspection Standards Documents for specific examples. Overall State of Good Repair scoring will be an average of the scoring for Age, Mechanical/Technical and/or Appearance See Exhibit D for more information/guidance on scoring criteria guidance. See Exhibit E for the Rolling Stock/Equipment Score Sheet template and the Facilities Score Sheet Template. Asset Condition Inspection Guidance As stated above the Asset Inventory will be scored on an annual basis. Not only is the agency scoring the asset, but also inspecting the asset to determine the overall condition. The entity/agency completing the scoring should be looking at the overall condition of the asset, including any loose, damaged, leaking or deteriorated items of the asset. Good inspection practices include physically touching, shaking and using other mechanical measures, if applicable, to assess the overall condition of the asset. The scoring forms should be used as a communication tool to management on the condition of the asset. Administrative Guidelines A record of the inspection must be kept by completing a hard copy inspection sheet, if you do not have the ability to complete the inspection sheet electronically. During inspections, note any defects such as worn, broken, damaged, or defective components, and assemblies, and any loose or missing hardware that may constitute a safety or service concern. Page 7 48

49 ITEM VI-B Transit Asset Management Group Plan CHAPTER 4 MANAGEMENT APPROACH Decision Support The Federal Transit Administration (FTA) funds, which are allocated to Ada & Canyon Counties, are crucial to the continued operation of public transportation services in the region. In order to ensure that the funds are fairly and equitably distributedinvested in a way to support the region s needs, an analytical process has been developed to prioritize all regional public transportation assets. This prioritization process is used to improve and maintain all public transportation assets in athe State of Good Repair. In accordance with federal regulations. The VRT Board of Directors will review and approve this prioritization on an annual basis for incorporation into the appropriate fiscal year s Capital Budget and the Regional Public Transportation Capital Improvement Plan (CIP). Formatted: Heading 1, Space Before: 14 pt, After: 3 pt, Line spacing: single Formatted: Highlight VRT utilizes two distinct paths in the distribution of funding. The first isreceives the an annual congressional appropriation. These are sustainable funds that are distributed annually by Congress through FTA. These funds are used to fund current Operations, and maintaining a State of Good Repair for existing assets and. Additional funding will can be used for new capital projects and/or additional Service that meet the goals of ValleyConnect 2.0 and regional long range transportation plan. These funds may be available for recipients and subrecipients to replace, rehabilitate, and purchase buses and bus related equipment and to construct bus-related facilities including technological changes or innovations to modify low or no emission vehicles or facilities. If funds are still available, the second path is VRT s application process. The funding for these applications is comprised of excess funds above and beyond those necessary to sustain operations of public transportation in Ada and Canyon Counties. These funds are not made available to cover operating costs as they are not sustainable and cannot be expected from year to year. These funds are reserved for one-time capital projects. The Management Approach for the Decision Support will require: Page 8 1. TAM Group Plan participants will provide an updated listing of all capital assets which will be organized according to their annual TAM Score, based on available condition data and objective criteria; 2. Asset Management Lead will sort/organize all listings of all public transportation capital assets according to the condition assessments. 3. Asset Management Lead will review, update and complete the Federal Reconciliation by area, e.g. large urban, small urban, and rural, which includes assessing financial needs for asset investments over the horizon period. 4. Federal Reconciliation will be reported to the VRT Board of Directors for review and comment on an annual basis which will include the TAM targets from the prior year for the current fiscal year. Investment Prioritization AVRT has developed a listing of program priorities based upon State of Good Repair and the goals of ValleyConnect 2.0 to help guide staff in making recommendations to the VRT Board of Directors, the general public, COMPASS, and finally the Idaho Transportation Board over the Horizon Period. Staff uses the following priorities, as well as established performance metrics from ValleyConnect 2.0 to make initial recommendations for theproject award and level of funding program priorities. Investment Prioritization for existing assets is the compilation of all public transportation assets. This information will become part of the Regional Public Transportation Capital Improvement Plan (CIP) which will 49

50 ITEM VI-B Transit Asset Management Group Plan include the TAM assets with assessment conditions and replacement costs. The CIP will also include and ValleyConnect 2.0 projects and programs with costs. When creating the proposed investment prioritization, the objectives below should be taken into consideration: 1. The Group TAM plan investment prioritization will be used to identify, programs and projects to improve or manage the state of good repair of capital assets for which the provider has direct capital responsibility. 2. The investment prioritization should improve or manage the state of good repair of capital assets in order of priority and anticipated project year as well as take into account the service provided by that capital asset. 3. Project rankings must be consistent with the Transit Asset Management policy and strategies. 4. When developing an investment prioritization, the VRT Board of Directors must give due consideration to those state of good repair projects that pose an identified unacceptable safety risk when developing its investment prioritization. 5. When developing an investment prioritization, the VRT Board of Directors must take into consideration its estimation of funding levels from all available sources that it reasonably expects will be available in each fiscal year during the TAM plan horizon period. 6. When developing the investment prioritization, the VRT Board of Directors must take into consideration requirements under 49 CFR and concerning maintenance of accessible features and the requirements under 49 CFR concerning alteration of transportation facilities. Investment Prioritization will be structured to follow the Safety/Compliance and Maintenance prioritization themes described in ValleyConnect 2.0. The state of good repair is a condition sufficient for capital assets to operate at a full level of performance. This means the asset: 1) Is able to perform its designed function; 2) does not pose a known unacceptable safety risk, and 3) has met or recovered lifecycle investments. The following three factors will be used to determine how the replacement plan is prioritized: 1. Safety-critical systems A system whose failure may result in injury, loss of life or serious environmental damage. 2. Mission-critical systems - A system whose failure may result in the failure of some goal-directed activity. 3. Business-critical systems - A system whose failure may result in very high costs for the business using that asset. Setting Performance Targets for Capital Assets The VRT Board of Directors will set performance targets for each asset category, Rolling Stock, Equipment and Facilities, on an annual basis as part of its internal budgeting process to ensure assets are maintained according to the State of Good Repair and balance the priorities and targets that best reflect the locals needs and funding availability from all sources. Current and projected performance targets will be monitored annually and compared to the agency s TAM actual performance. Performance targets will be reviewed and target changes will be considered if the performance target is projected to be not attainable in the next two consecutive years or if the performance target is projected to be more than 10% above or below the set target. VRT Group TAM Plan and Targets will be coordinated with the metropolitan, statewide and non-metropolitan planning processes. To the maximum extent practicable, the providers and Sponsor must coordinate with States and Metropolitan Planning Organizations in the selection of State and Metropolitan Planning Organization performance targets. Page 9 50

51 ITEM VI-B Transit Asset Management Group Plan All recommendations made to FTA are at the discretion of, and are subject to change by the VRT Board of Directors. Page 10 51

52 ITEM VI-B CHAPTER 5 REPORTING Transit Asset Management Group Plan Reporting Asset Scoring, Performance Targets & Measures Providers participating in the VRT Group TAM Plan will be required to score all assets on a yearly basis, and report those scores to VRT. Assets that will be scored are assets that will be included in a Program of Projects (POP) or that the agency has full or partial capital replacement responsibility. The resulting information from the Annual Asset Inventory collection, which includes asset inventory scores and performance targets, will be submitted on an annual basis to the VRT Board of Directors for review and approval. Once the VRT Board of Directors has accepted the annual asset scoring and set the yearly Performance Targets, this information will be reported to the Community Planning Organization of Southwest Idaho (COMPASS) the MPO in July, and the Federal Transit Administration (FTA) through the National Transit Database (NTD) in December - January. When analyzing performance targets and measures, it is important to first identify what factors are taken into account and what that data entails. VRT Board of Directors will utilize the following data when determining performance targets and measures for the VRT Group TAM Plan: Asset Age o Useful Life o Useful Life Benchmark (ULB) Asset Condition o Mechanical o Appearance Useful life is the expected lifetime of the asset, or the acceptable period of use in service. Useful life of revenue rolling stock begins on the date the vehicle is placed in revenue service and continues until it is removed from service. VRT utilizes the Federal Transit Administration s (FTA) standards for determining useful life and useful life benchmark. See Exhibit B FTA Useful Life Guidelines. Additionally, asset conditions are determined based off of the FTA s Transit Economic Requirements Model (TERM) as outlined below: Condition Description Rating Excellent No visible defects, new or near new condition, and may still be under warranty if applicable 5.0 Good Good condition, but no longer new; may have some slightly defective or deteriorated component(s), but is overall functional. 4.0 Adequate Moderately deteriorated or defective components but has not exceeded its useful life. 3.0 Marginal Defective or deteriorated component(s) in need of replacement; has exceeded useful life. 2.0 Poor* Critically damaged component(s) or in need of immediate repair; well past useful life. 1.0 *ITD-PT utilizes the technical expertise of the Idaho State Police (ISP) Commercial Vehicle Unit to use their discretion since the description for POOR is not mutually exclusive. See National Transit Database Asset Inventory Module Reporting Guide for more information or definition. Reporting Schedule and Required Information Beginning in Report Year 2018, transit agencies are required to report FY 2019 performance targets to the National Transit Database (NTD) for assets for which they have capital replacement responsibility. Agencies Page 11 52

53 ITEM VI-B Transit Asset Management Group Plan will be able to report on their progress toward these goals with the FY 2019 National Transit Database report. The VRT Board of Directors will review the proposed targets in January and set the targets in April on a yearly basis. This will ensure staff can enter the targets into NTD for the following fiscal year. Narrative Report Beginning in Report Year 2019, agencies must upload a narrative report to the NTD that outlines performance targets and their progress toward those targets. This narrative may include any changes in the transit system conditions that may affect progress toward targets. There is no prescribed format for the narrative report. Performance Target Categories Group Plan Sponsors must report performance targets for the following Categories: Category Rolling Stock Equipment Facilities Infrastructure What to Report Percentage of revenue vehicles within a particular asset class that have met or exceeded their Useful Life Benchmark (ULB) Report one target for each vehicle type Percentage of service vehicles that have met or exceeded their ULB Report one target for each vehicle type Percentage of facilities with a condition rating below 3.0 on the FTA Transit Economic Requirements Model (TERM) scale (1=Poor to 5=Excellent) Report one target for each facility type (Maintenance/Administration, Passenger/Parking) Percentage of guideway track miles with performance restrictions by class Report one target for each rail mode Progress toward these targets is calculated and analyzed based upon the condition assessment data reported to VRT by participating agencies. Page 12 53

54 ITEM VI-B CHAPTER 6 CLOSING Transit Asset Management Group Plan Formatted: Heading 1, Space Before: 14 pt, After: 3 pt TAM is a tool to better organize what the region is already doing, align our organizational objectives, and channel it strategically. VRT has the opportunity to set this vision and communicate to the rest of the region the importance of their roles and how they will impact the TAM goals. With a mature TAM program, VRT will be able to make funding decisions that balance regional needs, including capital, preservation, maintenance, safety, operations, and workforce, in order to deliver reliable, high quality, service to our region and our customers at a price they are willing to pay. Utilizing TAM VRT will be able to: Make investments based on regional priorities Incorporate TAM into every discussion budgets, contracts, project scoping, hiring, etc. Evaluate, refine, and embed the program in the organization over time Evaluate and manage potential risks using high quality information on the state of our assets. VRT will be able to clearly communicate to our stakeholders the SGR status and needs of the customers. TAM can provide us with the evidence to tell our story when it comes to: Making tradeoffs and communicating tough decisions to stakeholders Demonstrating that capital spending matches priorities Justifying agency needs and funding requests to the board Being transparent to the public and other stakeholders that we are taking care of assets and appropriately spending tax dollars Preventing, mitigating, responding to, and recovering from emergency or adverse events. The federal requirements are a starting point for this mature TAM program. Please keep these things in mind as VRT implements the required elements, current status, and next steps to move towards the vision. Page 13 54

55 ITEM VI-B Transit Asset Management Group Plan APPENDICES & EXHIBITS Exhibit A Roles and Responsibilities In compliance with 49 CFR 625 each transit provider must designate an Accountable Executive who will have the authority of approving and implementing the TAM plan. Role Title Agency TAM Plan Sponsor Executive Director Valley Regional Transit Asset Management Lead Development Valley Regional Transit Director/Compliance Officer Urban Asset Management Lead Accountable Executive Ada County Highway District - Commuteride Urban Asset Management Lead Accountable Executive Boise State University Page 14 55

56 ITEM VI-B Exhibit B FTA Useful Life Guidelines Transit Asset Management Group Plan pdf Asset Useful Life Source Useful Life Benchmark Source Buses/Light Vehicles Large heavy-duty transit buses 35'-40' Small heavy-duty transit buses 30' Medium medium-duty transit buses 25'-35'; Sprinter bus Medium light-duty transit buses 25'-35', BOC vehicles, Expansion vans Light-duty vehicles (vans, sedans, light-duty buses); Support vehicles; BOC (15-19 passenger), < 30 ft 12 years/500,000 miles 10 years/350,000 miles 7 years/200,000 miles 5 years/150,000 miles 4 years/100,000 miles FTA Circular D FTA Circular D FTA Circular D FTA - Default ULB Cheat Sheet source: 2017 Asset Inventory Module Reporting Manual, p.53 FTA Circular D 10 FTA Circular D 8 Trolleys Fixed guideway steel-wheeled 25 years FTA Circular D Fixed guideway electric, rubber tires Simulated trolleys (rubber tires, internal combustion engine) 15 years FTA Circular D Refer to bus useful life FTA Circular D Rail Vehicles 25 years, see circular FTA Circular D Ferries Page 15 56

57 ITEM VI-B Transit Asset Management Group Plan Passenger ferries 25 years FTA Circular D Other ferries (w/o 30 years FTA Circular D refurbishment) Other ferries (w/refurbishment) 60 years FTA Circular D Facilities Buildings- concrete, steel and frame construction 40 years FTA Circular D Other Capital Equipment Fare boxes 10 years Manufacturer/Industry Standards Computer hardware 4 years GAAP Guidelines/Industry Standards Computer hardware- Domain 4 years Industry Standards controllers Mobile data computers (realtime 7 years Manufacturer dispatching) Computer software 4 years GAAP Guidelines/Industry Standards Computer software- HASTUS 4 years Manufacture Computer software- ADP 4 years Industry Standards Scheduling/fleet management software Communications equipment, mobile radios, base stations Security/Surveillance equipment, cameras for vehicles Security/Surveillance equipment, cameras for buildings Shop equipment- Alignment machines, bus washing, tire changers 4 years GAAP Guidelines/Industry Standards 10 years GAAP Guidelines/Industry Standards Same as useful life of vehicle 10 years Industry Standards 10 years Manufacturer Bus lift 20 years Manufacturer Wheelchair lift Same as useful life of vehicle Bus shelters 15 years Industry Standards Bus shelter/stop benches 10 years Manufacturer Office furniture 10 years Manufacturer Page 16 57

58 ITEM VI-B Transit Asset Management Group Plan Carpeting 5 years Manufacturer Repeater tower 25 years Manufacturer Engine for bus/trolley 4 years Industry Standards Bus stop signage 10 years Industry Standards HVAC parts 5 years Grantee experience Asphalt parking lot 15 years GASB Thermal diesel particle filter 10 years Manufacturer cleaner Commercial roofing 15 years Industry Standards Page 17 58

59 ITEM VI-B Transit Asset Management Group Plan Exhibit C Asset Categories P DEPARTMENT OF TRANSPORTATION, Federal Transit Administration, 49 CFR Parts 625 and 630 [Docket No. FTA ] RIN 2132 AB07, Transit Asset Management; National Transit Database - Asset Categories Page 18 59

60 ITEM VI-B FTA/NTD Reporting Asset Categories Transit Asset Management Group Plan Page 19 60

61 ITEM VI-B Transit Asset Management Group Plan VRT Reporting Asset Categories Rolling Stock o AB Articulated Bus o AO Automobile o BR Over the Road Bus o BU Bus o CU Cutaway o DB Double Decker Bus o MV Minivan o OR Other o SB School Bus o SV Sport Utility Vehicle o VN Van Equipment o Automobiles o Trucks and other Rubber Tire Vehicles o Steel Wheel Vehicles o Shop Equipment o IT - Information Technology Hardware and Software o Administration Equipment, e.g. Furniture or other equipment o Bike Facilities o Passenger/Parking Facilities o Administrative/Maintenance Facilities Page 20 61

62 ITEM VI-B Exhibit D Scoring Criteria Guidance Transit Asset Management Group Plan Age will be scored based on percentage of useful life remaining. Useful life will be determined by Federal Transit Administration Circular D, GAAP Guidelines and/or Industry Standards. See Attachment A for the Useful Life Standards. Score Definition 5.0 Asset has % useful life remaining. 4.0 Asset has % useful life remaining. 3.0 Asset has % useful life remaining. 2.0 Asset has % useful life remaining. 1.0 Asset has % useful life remaining. 0.5 Asset is beyond its useful life. Page 21 62

63 ITEM VI-B Transit Asset Management Group Plan Mechanical/Technical scoring is based on how close an asset or component is to replacement or major overhaul. Scores will not have a greater granularity than a half point. Refer to individual asset group inspection Standards Documents for confidence in reliability and specific examples. Score Definition New or like new, 95% to 100% confidence in reliability; no visible defects, no damage, cosmetically looks new. *An asset is only new once, after rebuild some old parts are not new and therefore the highest score after a rebuild is 4.5. The Inspector is 90% to 95% confident in the reliability of the component/asset. The Inspector is 80% to 90% confident in the reliability of the component/asset. The asset shows minimal signs of wear, no major defects. Some minor defects with only minimal signs of deterioration. Cosmetic defects/minor wear. The Inspector is 70% to 80% confident in the reliability of the component/asset. The Inspector is 60% to 70% confident in the reliability of the component/asset. Some moderately defective or deteriorated components; expected maintenance needs. Cosmetically "fair" but all devices are functioning as designed. Small repairs or minor refurbishment. The Inspector is 50% to 60% confident in the reliability of the component/asset. Asset near overhaul or retirement, but in serviceable condition. The Inspector is 40% to 50% confident in the reliability of the component/asset. Asset has numerous defects or deteriorated component(s). Significant or multiple repairs needed. The Inspector is 30% to 40% confident in the reliability of the component/asset. The Inspector is less than 30% confident in the reliability of the component/asset. Critical defects exist that may affect function or safety. Asset is in need of multiple major repairs or refurbishment; numerous defects. 0.0 Multiple major repairs or Asset is set for disposal/retirement. Page 22 63

64 ITEM VI-B Transit Asset Management Group Plan Appearance scoring is based on how an asset or component appears visually. Scores will not have a greater granularity than a half point. Refer to individual asset group inspection Standards Documents for specific examples. Score 5.0 Definition New or like new, 95% to 100% in original condition; no visible defects, no damage, cosmetically looks new. *An asset is only new once, after rebuild some old parts are not new and therefore the highest score after a rebuild is The Asset appears to be 90% to 95% in original or like new condition The Asset appears to be 80% to 90% of the original condition of the component/asset. The asset shows minimal signs of wear, no major visual defects. Some minor visual defects with only minimal signs of deterioration. Cosmetic defects/minor wear. The Asset appears to be 70% to 80% of the original condition of the component/asset. The Asset appears to be 60% to 70% of the original condition of the component/asset. Some moderately visual or deteriorated components; expected maintenance needs. Cosmetically "fair" but all devices are functioning as designed. The Asset appears to be 50% to 60% of the original condition of the component/asset. Asset near visual overhaul or retirement, but in serviceable condition. The Asset appears to be 40% to 50% of the original condition of the component/asset. Asset has numerous visual defects or deteriorated component(s). Significant or multiple visual repairs needed. The Asset appears to be 30% to 40% of the original condition of the component/asset. The Asset appears to be less than 30% of the original condition of the component/asset. Critical visual defects exist that may affect function or safety. Asset is in need of multiple major visual repairs or refurbishment; numerous defects. 0.0 Multiple major visual repairs or Asset is set for disposal/retirement. Page 23 64

65 ITEM VI-B Transit Asset Management Group Plan Overall State of Good Repair scoring will be an average of the scoring for Age, Mechanical/Technical and/or Appearance. Age Mechanical Appearance Overall SGR Score Average of Scores Page 24 65

66 ITEM VI-B Exhibit E Score Sheets Templates Rolling Stock/Equipment Template Transit Asset Management Group Plan Page 25 66

67 ITEM VI-B Transit Asset Management Group Plan Page 26 67

68 ITEM VI-B Facilities Template Transit Asset Management Group Plan Page 27 68

69 ITEM VI-B Transit Asset Management Group Plan Exhibit F Acronyms Page 28 69

70 ITEM VI-B Exhibit G Assets Transit Asset Management Group Plan Page 29 70

71 ITEM VI-C TOPIC: Proposed Agenda Items for 01/07/19 VRT Board of Directors Meeting DATE: November 16, 2018 Summary of Proposed Agenda Items for 01/07/19 VRT Board of Directors Meeting WELCOME Jim Hansen FINANCE COMMITTEE REPORT Jim Hansen CONSENT AGENDA Approve Minutes of 09/24/18 VRT Board of Directors Meeting Approve Minutes of 10/22/18 VRT Board of Directors Special Meeting Accept 09/17/18 Executive Board Special Minutes Accept 09/24/18 Executive Board Special Minutes Accept 11/05/18 Joint Meeting Executive Board/RAC Minutes Accept 12/03/18 Executive Board Minutes Acknowledge Public Comment Report (approved by ExB/RAC 11/05/18) Confirm Meeting Dates for 2019 & Review Proposed Meeting Dates for 2020 (approved by ExB 11/05/18) Boise Health Care Trust (reso to appoint person to fill 2 nd year of Jim McMahon s two year appointment Jim was appointed 12/04/17) Fare Tariffs Rhonda TAM Plan Rhonda FINANCE COMMITTEE REPORT o Acknowledge FY2018 Qtr 4 Budget Variance Report (on 12/03/18 ExBoard o agenda) Acknowledge FY2018 Qtr 4 Cash Balance Report (on 12/03/18 ExBoard agenda) ACTION VRT Board/Executive Board Officer Succession & Open Position Nominations & Election-Kelli o New Chair then conducts remainder of meeting PUBLIC HEARINGS o FY2019 Budget Amendment o Disposals for 2019 PROCUREMENTS none at this time INFORMATION Local Allocation proposed calculations & methodology Performance Measures Annual Report 700 NE 2nd Street, Suite 100 Meridian, ID p: f:

72 ITEM VI-C FY2019 & FY2020 Capital Projects Department/Staff Reports Recommendation: Staff requests the Executive Board approve the proposed agenda items for the January 7, 2019 VRT Board of Directors meeting and authorize the Executive Director to use discretion in adding any other information that may arise before the meeting packet is scheduled to be distributed in mid to late December. For additional information contact: Kelli Badesheim, Executive Director, , 72

73 ITEM VII-A TOPIC: Marketing Fundamentals and Campaign DATE: November 20, 2018 Summary: The Executive Board approved the procurement with Stoltz for on-call marketing support in May The first six months of the contract have been establishing some much needed marketing fundamentals for the organization. The first task order was an analysis of existing conditions with recommendations on steps to establish a solid marketing foundation for the organization. The second and third task orders included establishing a messaging strategy, developing a brand book, an audit of our web and social media, co-branding recommendations to use with partners, and developing a photo library of stock photos for marketing. Now that the fundamentals are in place, the Stoltz team has developed a campaign strategy that will serve as the foundation for VRT s future campaigns. The approach Stoltz took was to develop a marketing platform that can be adapted to service changes, new services, and the many future programs VRT will be developing as we evolve over the next several years. Using this approach means that VRT can develop many of the materials in-house. We can also establish bigger, more targeted campaigns for specific projects and geographies, as well as opportunities to co-brand services with our transportation and community partners. This should allow VRT to leverage our very limited marketing dollars in a very effective way. The motion for approving the on-call marketing contract requires the Executive Board to review and endorse the marketing and campaign concepts. Stoltz will be presenting the concept for the Executive Board s consideration at the December meeting. Staff Recommendation/Request: Staff has reviewed the campaign strategy with Stoltz last week. We have provided our feedback to the details and recommend approval of the concept. I have intentionally left the details out of this memo because I don t think I can do the concept justice in this memo. Implication (policy and/or financial): Marketing is a critical component of a high quality transit system. The approach VRT has taken to marketing will establish a solid foundation for moving forward. The investments today are expected to lead to higher ridership and ultimately higher revenue from customers and also by leveraging the activities of our partners more effectively. More Information: Kelli Badesheim, kbadesheim@valleyregionaltransit.org, NE 2nd Street, Suite 100 Meridian, ID p: f:

74 Valley Regional Transit Scope of Work (SOW) #4: First Mile Last Mile Campaign Riders Ed Overview As the Treasure Valley grows and changes, residents are encountering the stresses that result from an increase of traffic on our major roads and in our neighborhoods. The need for increased and improved mobility options is greater than ever. Valley Regional Transit (VRT), is leading a Mobility Collaboration initiative, working to provide residents of the Treasure Valley safe, accessible modes of public transportation. GOAL: make public transit more accessible so ridership increases and single occupancy vehicle usage decreases. As a first step, VRT and partners are working to provide transit customers with tools and services that help them navigate that first and last mile between work/home and their bus stops. With new partners, like Lyft, joining the effort to provide safe ride share options. The Fairview Avenue and State Street routes are the first to include the new services; with the State Street route running at 15-minute increments, starting in January In order to reach the audience in an educational, fun, targeted way, Stoltz recommends the Riders Ed creative platform and will undergo the following to complete this SOW: Strategy & Creative Platform Development During this effort, Stoltz researched, brainstormed, planned, and presented VRT with the Riders Ed concept and strategy. Tactical Execution Campaign landing page ( o Route, schedule, and Lyft/TapRide information o CTAs for Lyft/TapRide and RideLine o Tips and tricks o Interactive content and links to mobility resources o Information about the Mobility Collaboration Riders Ed manual (booklet) o Distributed via direct mail, employers, outreach events, and residential communities Digital advertising o Geo-targeted mobile display ads o Retargeting (from landing page and website visits) o Social media ads Outdoor advertising o Bus and shelter wraps o Bench advertising 101 S. CAPITOL BLVD. SUITE 901 P.O. BOX 8925 BOISE, ID // T F

75 o Bus stop signage Partner efforts o s/newsletters Content marketing o Social media plan SOW #4 Estimate & Timing The following timeline and time spent is required for Stoltz to adequately accomplish the goals outlined in this SOW: Task Timeline Cost Strategy/Creative Platform $14,840 Strategic and Concept Development $14,840 / 106 Campaign Landing Page $14,380 Design (UI, UX) $5,740 / 41 Copywriting/content $1,960 / 14 Reviewing and proofing $280 / 2 Project admin $1,400 / 10 Hard costs: Programming $5,000 (hours NA) Riders Ed Manual $17,560 Design (layout) $4,200 / 30 Copywriting/content $1,680 / 12 Reviewing and proofing $280 / 2 Project admin $1,400 / 10 Hard costs: Printing and mailing* $10,000 (hours NA) Digital Advertising $24,340 Design (digital assets) $2,240 / 16 Copywriting/content $1,120 / 8 Reviewing and proofing $280 / 2 Project admin $700 / 5 Hard costs: media buy** $20,000 Outdoor Advertising $8,120 Design (layout of signs, shelters, etc.) $5,600 / 40 Copywriting/content $1,120 / 8 Reviewing and proofing $280 / 2 Project admin $1,120 / 8 Hard costs: bus wrap printing TBD 101 S. CAPITOL BLVD. SUITE 901 P.O. BOX 8925 BOISE, ID // T F

76 Partner Efforts $700 Design (layout) $280 / 2 Copywriting/content $280 / 2 Reviewing and proofing $140 / 1 Content Marketing Plan $8,400 Copywriting/content $5,600 / 40 Design (images to accompany posts) $2,240 / 16 Reviewing and proofing $560 / 4 How-to Videos (for social) $7,840 Pre-production $1,120 / 8 Production $3,360 / 24 Editing $3,360 / 24 SOW #4 TOTAL: $96,180*** **** ***** (incl. all creative & hard costs) *We plan to do two separate direct mail runs and then print copies for distribution at events, residential communities, and through the partners. **$20,000 budget will be spent over a105-day period. ***All Stoltz estimates are developed to reflect our agreement of a $140 blended, discounted rate for services. They do not cover hard costs, such as travel, printing, etc. ****Estimates are also developed with overall contract budget ($130K annually) top-ofmind. *****All estimates are built upon the assumption that each creative project will go through 2-3 rounds of revisions. If the project requires more than that, a discussion will be had and a change order may be put in place. 101 S. CAPITOL BLVD. SUITE 901 P.O. BOX 8925 BOISE, ID // T F

77 ITEM VII-B TOPIC: Fare Simplification and Pass Programs DATE: November 15, 2018 Summary: VRT and public transportation partners worked on a fare analysis, regional fare policy, and fare tariff sheet in FY16. A Regional Fare Policy was approved on January 4, 2016, and the Fare Tariff for VRT was approved on 7/10/2017. VRT is again revisiting the recommendations from the consultant and has received concurrence from our transportation vendor, First Transit, on the consultant s findings. Valley Regional Transit still has a very low fare box recovery ratio, limited opportunities to purchase valid fare media, tailored employer pass programs that limit VRT s capacity to expand those revenue opportunities, and an ineffectual regional fare policy to ensure that, over time, fares change appropriately. This project will review existing fare structure, identify opportunities for simplification and automation of data, suggest ways to minimize the negative impacts of fare increases on the most vulnerable populations, evaluate the revenue impacts of fare increases, and suggest fare rates for each fare type such that the resulting average fare is roughly equal to the cost of providing the capacity used. Objectives Deliverables Simplify fare structure Maximize the benefits of current fare boxes and data flows Provide a foundation for expanded fare contracts with employers and residential centers Minimize barriers to accessing valid transit fare media Increase fare revenue Minimize impacts on low-income and other vulnerable populations Tie fare revenues to operating costs Better inform VRT Board Members about the economics of fare policy Fare simplification, consolidation, enhanced capabilities, and structure o A complete report supported by an analysis of unused or underutilized fare types. The report will need to go through the Regional Advisory Council for endorsement and review. o New fare sets o Installation, testing, and training of new desktop equipment 700 NE 2nd Street, Suite 100 Meridian, ID p: f:

78 ITEM VII-B o Documentation, testing, and training of the new standard operating processes for transferring data Fare Analysis & Recommendation o Report on fare structure, products, and price based upon demographic analysis and Title VI requirements followed by recommendations for a new fare structure. o A new Fare Tariff sheet with proposed changes to submit to the VRT Board for approval. Implementation of New Fare Structure o Implementation Plan with roles, responsibilities, milestones, and deliverables o Marketing campaign deliverables o Updated Fare Tariff Sheet o Set Fare Recovery Ratios Customer & Operator enhancements o Report on the functionality and synchronization of GFI and RouteMatch system. o Report with the pros and cons, dependencies, risks, and outline of next steps of accepting credit / debit card payments on board transit vehicles Staff Recommendation/Request: Information item: Staff will present the status of the project and a project schedule for Fare Simplification and Pass Programs implementation. Implication (policy and/or financial): The policy and strategies for Fare Simplification and Pass Programs will be used to inform the annual public transportation budgets. Highlights: December 2018 Information Item Executive Board Charter: Scope, Objectives, Deliverables and Schedule Action Item Executive Board Procurement - Mobile Ticketing January 2019 Action Item Executive Board Mobile Ticketing RFP Information Item VRT Board of Directors Findings and Recommendations Action Item VRT Board of Directors Public Hearing Dates Action Item VRT Board of Directors Updated Fare Tariff Sheet 75

79 ITEM VII-B Information Item Regional Advisory Committee Findings and Recommendations February 2019 Information Item Executive Board Fare Types, Pricing, Reduced Fares, Service Utilization and Costs, and Smart Cards Information Item Executive Board Fare Tariff Update Information Item Regional Advisory Committee Outreach information March 2019 Information Item Executive Board Outreach information Action Item Executive Board Fare Tariff Update Action Item Executive Board Fare Types April 2019 Action Item VRT Board of Directors Updated Fare Tariff Sheet More Information: Rhonda Jalbert, Development Director, , 76

80 ITEM VII-B Valley Regional Transit Fare Assessment Fall

81 Valley Regional Transit Fare Assessment ITEM VII-B Table of Contents Background 1 Recommendation #1 Fare Types Offered 2 Recommendation #2 - Pricing 5 Recommendation #3 Reduced Fares 7 Recommendation #4 Service Utilization and Costs 8 Recommendation #5 Smart Cards

82 Background Valley Regional Transit Fare Assessment ITEM VII-B First Transit has been tasked with reviewing Valley Regional Transit fares in order to provide recommendations aimed at simplifying the fare structure and increasing farebox revenue. Our review follows the 2016 Regional Fare Analysis completed by Four Nines Technologies. According to VRT staff: Valley Regional Transit currently has very low fare box recovery ratio, limited opportunities to purchase valid fare media, tailored employer pass programs that limit VRT s capacity to expand those revenue opportunities and no policy to ensure that, over time, fares change appropriately. This project will review existing fare structure, identify opportunities for simplification and automation of data, suggest ways to minimize the negative impacts of fare increases on the most vulnerable populations, evaluate the revenue impacts of fare increases and suggest fare rates for each fare type such that the resulting average fare is roughly equal to the cost of providing the capacity used. The assessment includes recommended fare changes along with the data analysis created to inform the recommendation. 1 79

83 Valley Regional Transit Fare Assessment ITEM VII-B Recommendation #1 Fare Types Offered It is recommended that VRT eliminates the 3-month, 6-month and 12-month passes. These passes are seldom used and eliminating the unused passes will streamline the fare structure. VRT offers significantly more pass options than peer transit systems. VRT has only one peer offering a 3-month pass and the majority do not offer a 12-month pass. Peer City Fare Offerings City 7 Day Pass 31 Day Pass 3 month pass 6 month pass 12 month pass Transfers VRT No Yes Yes Yes Yes No Des Moines IA Yes Yes No No No No Eugene OR No Yes Yes No No No Madison WI No Yes No No No No Reno NV Yes Yes No No No No Salem OR Yes Yes No No Yes No Spokane WA Yes Yes No No No No Tucson AZ No Yes No No Yes No While offering fare types with validity for varying time periods and at different price points allows the agency to target customer segments, many of the options aren t being used. The following tables show fare types used in Ada and Canyon Counties during FY The 3-month, 6- month and 12-month passes account for just 5.4% of ridership in both counties. Canyon County Ada County Fare Product FY17/18 % of Total Fare Product FY17/18 % of Total 1 Ride 42, % 1 Ride 219, % Day Pass Local 31, % Day Pass Local 377, % Day Pass Universal 5, % Day Pass Universal 1, % 31-Day Pass Local 9, % 31-Day Pass Local 217, % 31-Day Pass Universal 13, % 31-Day Pass Universal 3, % 3-Month Local % 3-Month Local 43, % 3-Month Universal 5, % 3-Month Universal % 6-Month Local 0 0.0% 6-Month Local 3, % 6-Month Universal 0 0.0% 6-Month Universal 0 0.0% Annual Local % Annual Local 10, % Annual Universal 1, % Annual Universal 4, % Ridership Program* 38, % Ridership Program* 273, % 147,560 1,154,

84 Valley Regional Transit Fare Assessment ITEM VII-B FY17/18 Ada County System Fares by Type for FY 17/18: Divisions 21 Received/Sold Oct Nov Dec Jan Feb March April May June July August Sept Total BSU Faculty & Staff Key ,537 Boise City Key 2 1,960 1,459 1,531 1,877 1,648 1,788 1, ,426 1,344 1,821 1,499 18,875 VRT Employee Key ,155 Free Child Key 4 1, ,107 1,071 1,165 1,241 1,220 1,262 1,021 12,372 Short Fare Key ,919 BSU Student Key 6 10,283 9,092 6,335 8,897 8,650 8,211 8,533 2,603 4,762 4,210 6,868 7,561 86,005 Boise School District Key 7 9,374 7,876 7,120 8,049 9,193 8,277 9,800 7, ,114 9,144 80,145 St. Luke Employee Key , ,525 St. Alph. Employee Key ,980 Wheelchair (excluded from total) Key A ,075 Bicycle (excluded from total) Key B 4,805 3,917 3,271 3,845 3,891 4,359 4,877 6,485 5,144 4,996 6,378 5,389 57,357 Issue Change Card Key C ,895 Free/Other Key D 5, , , ,754 All Day Pass Oct Nov Dec Jan Feb March April May June July August Sept Total All Day Local Sold TTP All Day Local Sold TTP All Day Local Sold TTP 19 3,887 3,615 3,677 4,135 3,583 4,213 3, ,130 3,856 4,254 3,573 42,887 All Day Local Rec'd TTP 1 10,554 9,947 10,019 11,066 9,663 10,505 9, ,793 10,348 10,884 9, ,035 All Day Universal Sold TTP All Day Universal Rec'd TTP All Day Local Reduced Sold TTP All Day Local Reduced Sold TTP 20 7,376 6,882 7,218 7,476 6,606 6,796 6, ,877 7,231 7,843 6,447 78,386 All Day Local Reduced Rec'd TTP 3 13,070 12,169 12,325 13,296 11,869 12,633 13, ,864 13,736 14,402 11, ,057 All Day Universal Reduced Rec'd TTP Day Pass Oct Nov Dec Jan Feb March April May June July August Sept Total 31 Day Local Rec'd TTP 31 9,063 8,116 7,473 8,300 7,900 8,950 7, ,978 6,706 7,615 6,304 84, Day Universal Rec'd TTP , Day Local Reduced Rec'd TTP 33 11,304 10,524 10,272 11,333 11,336 12,057 10, ,312 12,388 12,782 10, , Day Universal Reduced Rec'd TTP ,165 3 Month Pass Oct Nov Dec Jan Feb March April May June July August Sept Total 3 Month Local Rec'd TTP 12 2,300 1,794 1,338 1,589 1,285 1,942 2, ,809 2,816 3,238 2,450 22,696 3 Month Universal Rec'd TTP Month Local Reduced Rec'd TTP 26 1,342 1,067 1,170 1,405 1,474 1,506 1, ,089 2,094 2,020 1,291 16,962 3 Month Universal Reduced Rec'd TTP Month Pass Oct Nov Dec Jan Feb March April May June July August Sept Total 6 Month Local Rec'd TTP ,946 6 Month Universal Rec'd TTP Annual Pass Oct Nov Dec Jan Feb March April May June July August Sept Total Annual Local Rec'd TTP ,108 1, ,047 1,061 1, ,142 Annual Universal Rec'd TTP ,533 Cash Oct Nov Dec Jan Feb March April May June July August Sept Total $1.00 Cash Fare TTP 14 6,785 6,681 6,425 7,065 6,657 7,918 7, ,669 6,713 7,735 6,319 77,492 $1.00 Cash Fare TTP Cash Fare TTP 15 2,409 2,072 2,026 2,366 2,133 2,116 1, ,304 1,969 2,242 2,055 23, Cash Fare TTP Employer Passes Oct Nov Dec Jan Feb March April May June July August Sept Total 3 Month Local Rec'd TTP ,968 3 Month Universal Rec'd TTP Day Local Rec'd TTP , Day Universal Rec'd TTP Misc. (programmed in GFI) Oct Nov Dec Jan Feb March April May June July August Sept Total * C CWI Student TTP 17 5,342 4,433 3,774 4,083 4,464 4,536 4,692 1,753 4,379 4,683 5,128 4,655 51,922 * D CWI Fac/Staff TTP BSU Student ESL TTP * 7 U of I Faculty TTP Summer Youth Program TTP *9 Idaho Power TTP ,934 * A ADA City TTP ,782 Emp/Spec TTP ,083 Stored Value: $12.00 TTP , , ,143 Stored Value: $24.00 TTP 42 2,185 2,338 2,172 2,776 2,498 2,762 2, ,604 2,470 2,686 2,316 27,523 Test Card TTP , , ,770 *6 Read TTP *B BSD Fac/Staff TTP ,028 Bill Override TTP *8 University of Idaho Student TTP ,162 Change Card Received TTP ,080 1, , ,763 81

85 Valley Regional Transit Fare Assessment ITEM VII-B FY17/18 Canyon County System Fares by Type for FY 17/18: Divisions 24 & 31 Received/Sold Oct Nov Dec Jan Feb March April May June July August Sept Total BSU Faculty & Staff Key ,726 $1.00 Bill Override Key VRT Employee Key $5.00 Bill Override Key Short Fare Key BSU Student Key 6 1,791 1, ,261 1,218 1,193 1, ,390 13,010 Boise School District Key St. Luke Employee Key ,257 St. Alph. Employee Key ,147 Wheelchair (excluded from total) Key A Bicycle (excluded from total) Key B ,513 Issue Change Card Key C Free/Other Key D 2,653 1,196 1,290 1,532 1,410 1,516 1,428 11,423 1,666 1,472 1, ,788 All Day Pass Oct Nov Dec Jan Feb March April May June July August Sept Total All Day Local Sold TTP All Day Local Sold TTP All Day Local Sold TTP All Day Universal Sold TTP ,867 All Day Local Rec'd TTP ,065 1,006 9,093 All Day Universal Rec'd TTP All Day Local Reduced Sold TTP All Day Local Reduced Sold TTP All Day Local Reduced Sold TTP ,355 All Day Local Reduced Sold TTP ,651 All Day Local Reduced Rec'd TTP 3 1,315 1, ,036 1,014 1,069 1, ,128 1,259 1,180 1,021 12,186 All Day Universal Reduced Rec'd TTP Day Pass Oct Nov Dec Jan Feb March April May June July August Sept Total 31 Day Local Rec'd TTP , Day Universal Rec'd TTP , Day Local Reduced Rec'd TTP , Day Universal Reduced Rec'd TTP ,874 3 Month Pass Oct Nov Dec Jan Feb March April May June July August Sept Total 3 Month Local Rec'd TTP Month Universal Rec'd TTP ,571 3 Month Local Reduced Rec'd TTP Month Universal Reduced Rec'd TTP Month Pass Oct Nov Dec Jan Feb March April May June July August Sept Total 6 Month Local Rec'd TTP Month Universal Rec'd TTP Annual Pass Oct Nov Dec Jan Feb March April May June July August Sept Total Annual Local Rec'd TTP Annual Universal Rec'd TTP ,923 Cash Oct Nov Dec Jan Feb March April May June July August Sept Total $1.00 Cash Fare TTP ,658 $1.00 Cash Fare TTP 16 1, , , Cash Fare TTP Cash Fare TTP ,847 Employer Passes Oct Nov Dec Jan Feb March April May June July August Sept Total 3 Month Local Rec'd TTP Month Universal Rec'd TTP , Day Local Rec'd TTP Day Universal Rec'd TTP ,618 Misc. (programmed in GFI) Oct Nov Dec Jan Feb March April May June July August Sept Total * C CWI Student TTP 17 1,540 1, , ,459 * D CWI Fac/Staff TTP BSU Student ESL TTP * 7 U of I Faculty TTP Summer Youth Program TTP *9 Idaho Power TTP ,487 * A ADA City TTP ,722 Emp/Spec TTP * B BSD Fac/Staff: Not enabled TTP * 8 U of I Student TTP Change Card Received TTP Stored Value Card: $12.00 TTP Stored Value Card: $24.00 TTP ,640 Test Card TTP ,847

86 Valley Regional Transit Fare Assessment ITEM VII-B Recommendation #2 Pricing It is recommended that VRT increase fares to better align with peers and improve farebox recovery and increase the average fare. Consider raising the base fare to $1.25, reduced fare to $.60, day pass to $2.50, and 31-day pass to $45. Reduced fares should be as close to half the recommended fares as is practical. VRT s fares are significantly lower than their peers. The peer average base fare is $1.84 compared to VRT s $1.00. Additionally, VRT s average fare collected is $.20 (34%) less than the peer average. Peer City Fare Comparison City 2016 NTD Local Fare % Full Fare Reduced Fare Day Pass ADA Paratransit Average Fair VRT 7.7% $1.00 $0.50 $2.00 $ Des Moines IA 25.0% $1.75 $0.75 $4.00 $ Eugene OR 14.7% $1.75 $0.85 $3.50 $ Madison WI 23.4% $2.00 $1.00 $5.00 $ Reno NV 22.5% $2.00 $1.00 $3.00 $ Salem OR 8.3% $1.60 $0.80 $3.25 $ Spokane WA 14.6% $2.00 $1.00 $4.00 $ Tucson AZ 7.6% $1.75 $0.75 $4.00 $ The Four Nines Technologies Regional Fare Analysis offers the following recommendation as it relates to pricing: Recommendation: As VRT rationalizes and streamlines the fare products that are offered, consideration should also be given to increasing the base fare (i.e. the Local 1 Ride fare). Since the base fare also determines the price of other fare products (through pass multiples and discount rates), consideration should be given to adjusting pass pricing multiples to reflect pass usage rates, and ridership and fare revenue objectives. Applying a fare elasticity of and assuming no shifts between fare products, increasing the Adult Local 1 Ride fare from $1.00 to $1.25 (and consequently Adult Local Day Passes from $2.00 to $2.50) and holding all other pass prices and Student/Senior/ Disabled/Medicare fares constant would result in a 7% reduction in Adult Local 1-Ride and Day Pass ridership but a 16% increase in revenue generated by Adult Local 1-Ride and Day Pass ridership. Overall, this fare change would result in a 1.5% reduction in 5 83

87 Valley Regional Transit Fare Assessment ITEM VII-B total VRT fixed-line ridership. Since it is not known how many Adult Local Day Passes are sold, the impact on overall VRT fixed-line fare revenue cannot be determined. Increasing the base fare would also enable VRT to increase its ACCESS fares. ADA regulations set the maximum fare that transit agencies may charge on ADA complementary paratransit services at twice the cash fare for a comparable bus trip. 6 84

88 Recommendation #3 Valley Regional Transit Fare Assessment ITEM VII-B Reduced Fares Due to high utilization rates of reduced fare media and below-average farebox recovery, it is recommended that VRT undertake a comprehensive approach to enforcing the validity of reduced fares. Students, seniors, disabled and Medicare card holders should be required to apply for a VRT issued reduced fare photo identification. The ID should be required for purchasing and using reduced fare media or paying for a cash fare. IDs should also be provided to paratransit customers. Low-cost ID machines should be placed at the transit centers in Ada and Canyon Counties. The Four Nines Technologies analysis states the following: The FTA requires transit agencies to offer half fares during off-peak periods to seniors and persons with disabilities. The FTA also allows agencies to require passengers to show proof of eligibility when they pay their fare in order to pay the half fare. Eligible forms of identification include a driver s license, Medicare card, special identification card, and ADA eligibility card. Agencies may also require passengers to obtain a special identification card as the sole basis for paying the half fare, as long as obtaining the special identification card is relatively easy. For example, although not prohibited, requiring individuals to travel to a single office, which may be inconveniently located, is not consistent with the intent of this requirement. Additionally, VRT should consider eliminating non-profit fare discounts. While partnerships are important, VRT s ability to fund services should not be secondary to the budgets of local nonprofits. Finally, eliminating stored value cards, which provide a 20% discount, would aid in the simplification of the fare structure and eliminate yet another fare discount. 7 85

89 Valley Regional Transit Fare Assessment ITEM VII-B Recommendation #4 Service Utilization and Costs It is recommended that VRT review routes and identify each as a coverage route or productivity route simply to provide a clear understanding of how the design of service impacts farebox revenue. Influences on farebox revenue and recovery are numerous and complex. An important factor to be considered is the design of the bus network. The table below shows the relative productivity of the VRT bus network compared to peers. VRT service productivity is well below the peer group and a factor may be the design of the bus network. If services are more focused on providing coverage rather than optimizing ridership, farebox revenue will not be optimized. Peer City Productivity Comparison City Average Trips/Hour VRT 14 Des Moines IA 21 Eugene OR 32 Madison WI 33 Reno NV 30 Salem OR 19 Spokane WA 26 Tucson AZ

90 Valley Regional Transit Fare Assessment ITEM VII-B Recommendation #5 Smart Cards It is recommended that VRT engage the current smart card provider to determine the costs of more broad use of the technology. According to the Four Nines Technologies analysis: Fareboxes on VRT s fixed-line buses accept smart cards, but at this time, VRT has limited the use of smart cards to the One-Year Pass and VRT s Employer Program (ValleyRide Premium Pass). In part, this is because VRT has been concerned about incurring the costs of widespread use of smart card media. VRT also does not have the ability to reload smart cards. VRT only has one smart card/magnetic stripe card encoder at its VRT Meridian office. Smart cards are encoded to expire one year from the start date of the pass. Card management is handled by staff, and there is no portal for riders to manage their cards and load products. Transit agencies that have implemented fare collection equipment that accepts payment using smart cards have generally made extensive efforts to leverage the investment in that equipment by encouraging the use of smart cards, often by limiting certain fare products to smart cards (e.g., monthly passes, transfers) or by providing incentives (e.g., fare discounts for riders who use stored value instead of paying with cash). Most transit agencies with smart card fare systems charge $2 to $5 per card to cover their costs and to encourage riders to retain and reload the cards. In many cases, agencies have made efforts to distribute smart cards broadly and at no charge in advance of rolling out new fare collection systems, and charging for cards only after rollout. Some agencies charge for the card, but provide up to 100% of the price as a credit on the smart card. Other agencies charge only for replacement cards. In addition, some agencies have shifted day passes from paper to limited use smart cards and have increased the price of the day pass (e.g., by $0.25) to cover the media cost. 9 87

91 ITEM VII-C TOPIC: VRT Board Officer Succession and Nominations for Calendar Year 2019 DATE: November 15, 2018 Summary Executive Board members are asked to review the 2019 officer succession list and be prepared at the 01/07/19 Executive Board meeting to propose suggestions on nominations for open officer positions to be approved at the January 7, 2019, VRT Board meeting. Background The Valley Regional Transit Board voted at the April 2011 Board meeting to proceed with a change to the governance structure of VRT. The change maintained the existing representative Board structure and created an Executive Board elected from the full Board. The full Board meets quarterly to conduct the governance business of the organization. The Executive Board meets monthly to execute the actions of the full VRT Board of Directors. Each January the VRT Board of Directors confirms a new slate of Executive Board members. The chair, chair-elect, and vice-chair are in the line of succession and those members move up one position. The current chair remains on the Executive Board as the immediate past-chair. The bylaws require at least one member be placed on the Executive Board from Boise, Caldwell, Nampa, and Boise State University. Recommendation The succession of officers for 2019 would be as follows: Tom Dale (Canyon County) will move from chair-elect to the chair position Dave Bieter (Ada County-Boise) will move from vice-chair to chair-elect. Darin Taylor (Canyon County) will move from sec/treasurer to vice-chair. Jim Hansen (Ada County) will remain on the Executive Board as immediate past chair. Garret Nancolas will be completing his term in the officer rotation as past chair. Elaine Clegg, Jim Tibbs, Luke Cavener will be completing their terms as the Ada County atlarge members. David Lincoln and Debbie Kling will be completing their terms as Canyon County at-large members. Corey Cook, Boise State University s representative will remain on the Executive Board. Staff is looking for suggestions on nominations for the positions listed below which comprise the open positions for the upcoming year. Ada County Sec/Treasurer Ada County At-large 2 members Canyon County - At-large 3 members to include Caldwell & Nampa representation 700 NE 2nd Street, Suite 100 Meridian, ID p: f:

92 ITEM VII-C The Executive Board will discuss a slate of nominees at the January 7 th Executive Board meeting to be followed by elections on January 7th at the VRT Board of Directors meeting. For additional information contact: Kelli Badesheim, Executive Director, , kbadesheim@valleyregionaltransit.org 89

93 VALLEY REGIONAL TRANSIT FY2019 PROCUREMENT CALENDAR EXECUTIVE BOARD / VRT BOARD OF DIRECTORS ITEM VII-D Goods/Service Bus Bench - Revenue Generating Advertising Mobile Ticketing Total Procurement Amount Approx. Annual Revenue Generation: $9,000 x 5 = $45,000 Revenue Generating Opportunity Potential Executive Board Action December 3, 2019 January 7, 2019 Potential VRT Board of Directors Action Comments Seeking for contractor to provide, install and maintain bus benches and other amenities at designated Treasure Valley VRT bus stops. Term of agreement: will be four (4) years with five (5) one (1) year options to renew based upon performance. Seeking a mobile ticketing and pass distribution platform to be used by passengers, employers and agencies to purchase passes digitally for multiple modes of transportation. Boise Green Bike Support Vehicle Automatic Passenger Counters Capital Infrastructure Construction CWI Roundabout State Street Study Consultant Services $68,000 January 7, 2019 Support vehicle for distributing bikes and maintenance $240,000 April 2019 Seeking vendor to purchase 57 automatic passenger counters for VRT s Ada County buses. APC s deliver the most reliable and verifiable data which is critical to the success of ridership reporting. $875,000 Amount is for construction of the project. Pending NEPA April 2019 approval. $200,000 TBD Evaluate transit routing alternatives and retest the traffic flow and transit operation assumptions and conclusions of High Occupancy Vehicle (HOV) lanes and transit pull outs Upcoming Procurements: Service Change Signage Ada County Laundry Services Transit Revenue Vehicles Executive Board Approval Levels: $50,000 - $199,999 VRT Board of Directors Approval Levels: $200,000 and over Updated w/ li 11/8/18kj 90

94 ITEM VII-E TOPIC: Executive Director Report DATE: November 20, 2018 Highlights: FY2019 Organizational Transition It seems that Valley Regional Transit goes through a major staffing shift about every three years. The changes we are experiencing this coming calendar year are a bit more significant than in years past. Many of you are aware that Linda Ihli is retiring after almost 15 years with VRT as my Executive Assistant. December 3rd will be her last Executive Board meeting. Our Accounting Manager, Linda Roberts is retiring in December after being with VRT for almost 13 years. In addition, Jim McMahon, VRT s Finance Director, left effective November 15 to take another position. We have been working to fill these critical positions and shore-up any gaps to ensure as seamless a transition as possible. I m going to miss both the Linda s very much. They have worked tirelessly since announcing their retirements to set up their successors for success. I am reviewing the Finance Director job description and will be making some adjustments to the functions based on the needs that were identified in the financial analysis. I will be posting that position over the next week. State Street Corridor Coordination The Executive Group meeting was held on October 29. The outcome of that meeting was to have the Technical Group focus over the next several weeks on drafting a scope, timeline, and budget to present to the Executive Group with the purpose of addressing the most critical concerns shared with the Policy Group in September. Those critical concerns include the issues of the viability of HOV lanes and the question of bus pull-outs in the urban segments of the system. We will also be drafting charters for the groups to help guide their processes and activities. Community Engagement I m continuing my work with community leaders in Ada and Canyon counties to engage leaders on strategies to fund and achieve the vision of ValleyConnect 2.0. We are breaking into small workgroups on stakeholder engagement and legislative activities. Those meetings are scheduled for next week. The larger group will be meeting in early December. Regional Coordination Council We completed the charters for the RAC on their highest priority work. I am going to be working with the members this next month to fill out the membership matrix and better show the various interests the members are representing throughout the region. We will also begin recruiting another Canyon County representative to fill the empty position. 700 NE 2nd Street, Suite 100 Meridian, ID p: f:

95 ITEM VII-E Mobility Management Program Supports Our new Mobility Navigator began this week. Obed Saenz was promoted to this position from Customer Service. Obed will be taking on revising our pass programs and establishing better processes and procedures for working with employers, human service agencies and neighborhoods on pass programs with the goal of getting more passes into customers hands and achieving better ridership on our services. We are continuing to work on our process to bring advertising in-house. There will be some additional changes to our staffing of that function. The project manager of that work is currently developing a business plan that will be a guide for implementing the program going forward. More information: Kelli Badesheim, Executive Director, , kbadesheim@valleyregionaltransit.org 92

96 ITEM VII-E TOPIC: Development Department Monthly Report DATE: November 15, 2018 Summary: Update of Development Department activities for the month of October/November 2018 VRT Strategic Plan Goal 1 - Demonstrate responsible stewardship of public resources Performance Based Decision-making ValleyConnect 2.0 (VC2.0) Staff has been refining the projects in VC2.0 to be able to report out costs and benefits by jurisdiction and to inform potential fiscal year 2020 budget requests. Staff has also been applying the network and route design principles in their review of existing service and guide near term service changes. Programming o Local & Federal Allocations Staff is compiling where local and federal dollars are currently being allocated for service, capital, special allocations and regional costs for information and background data. A workshop will be held at the December 5, 2018 Executive Board to propose the methodology for calculating each category. Once reviewed and discussed, staff will present to the Executive Board the outcomes based on the FY19 budget and variance to actual. After the calculations are reviewed, staff will present the outcomes to the jurisdictions for input and bring that back to the Executive Board. o Volkswagen Settlement Staff has been attending meetings and webinars on the Volkswagen Settlement. The applications for funding have been released. It appears that it will not be beneficial for VRT to apply for these funds at this time. o Greyhound VRT has been approached by Greyhound about staging their vehicles at Main Street Station, having VRT sell passes for Greyhound and servicing their vehicles during their layovers at the Boise Maintenance Facility. Staff is reviewing the requirements and specifications and will present this as information to the January Executive Board for input. National Transit Database (NTD) Reporting Project Staff has been working with National Transit Database consultant to verify how to report all of the public transportation service in the region. VRT will be making 700 NE 2nd Street, Suite 100 Meridian, ID p: f:

97 ITEM VII-E some significant changes and will be able to report a large majority of the Specialized Transportation which has not been reported in the past. Transit Asset Management VRT s Transit Asset Management Plan, which has more detailed information on implementing the TAM Policy, will be submitted to the Executive Board in December for approval and recommendation to the VRT Board of Directors in January Standard Operating Procedures (SOP) / Desktop procedures are being compiled as well. VRT, Boise State and ACHD Commuteride are currently in the process of scoring the assets which will be completed by January 15, This scoring will be used for the investment prioritization for the capital project plans for fiscal year Increase ridership and revenue Fare Project Staff has begun developing a scope and schedule for simplifying the VRT fare structure, implementing fare recommendations including potential fare increases, and exploring opportunities to expand the transit pass program and making it easier for riders to pay their fare. An update will be presented as an information item to the Executive Board in December. Service Changes Service Change concepts were approved at a special VRT Board of Directors meeting on October 22, Service Changes will be implemented January 14, Staff is still working through the potential impacts of a funding shortfall for Route 44 Hwy 44 Express. This route will not change in January 2019, but later in the fiscal year. Staff has begun preparing information to engage local jurisdictions about 2020 service change concepts. Goal 3 - Build institutional and regional capacity Regional Capital Enhancements Boise Operations Facility Upgrades HVAC/CNG project was approved at the September 24, 2018 VRT Board of Directors meeting. Notice to Proceed was sent out and construction will start in November Happy Day Transit Center Upgrades The Executive Board approved initial design funding at the November Executive Board meeting. VRT is still waiting on grant funding in order to begin this effort. 94

98 ITEM VII-E College of Western Idaho Roundabout Environmental Document has been approved by the FTA. Project Design costs were be to approved at the September 24, 2018 VRT Board of Directors meeting. Design will start, pending grant funding in December or January.. Facilities, Equipment and Infrastructure Maintenance Policy and Plan Staff is working on a Facilities and Equipment Maintenance Plan and Process for fiscal year This plan will outline roles and responsibilities between Development and Operations. The Facility Maintenance Policy was approved in September A Facilities Plan will outline roles and responsibilities. Nampa Transit Oriented Development City of Nampa has determined not to take the lead on this project. Staff is reaching out to prior stakeholders to see if they are still interested in the original project concept at two possible locations under review. Main Street Station Braille signage updates are being reviewed and discussed with the Regional Advisory Council. Bus Stop - Accessibility, Prioritization and Review Staff is working with the Regional Advisory Committee (RAC) on Bus Stop Accessibility, Prioritization and Implementation project. Staff will review with the RAC the adopted Bus Stop Location and Transit Amenities Development Guidelines and bus stop criteria for ranking of stops. o ACHD ADA Transition Plan ACHD has put out an ADA Transition Plan for review and comment. Comments are due February 8., Staff will review the plan with RAC and propose a response from VRT to ACHD. State Street Corridor Projects o State Street Transit Oriented Development Study Consultant and agency staff continues to make progress on the TOD study, has re-engaged the State Street Community Advisory Group and begun developing conceptual station area designs and did an initial exploration into the impacts of in-lane transit stops. Consultant and staff have begun exploring how to visualize transit and development in the corridor. The project is on track to be completed before the end of the year. 95

99 ITEM VII-E o State Street Communications Plan VRT Staff, in coordination with the City of Boise and ACHD staff, have developed key messages related to our joint efforts on the State Street Corridor. The consultant is working on developing a webpage for this plan. o State Street Policy Makers Forum and Executive Team VRT Staff, in coordination with the other State Street Corridor MOU partners held the first policy maker forum on September 20 th and the first State Street Executive Team on October 29 th. As a follow up action to the executive team, staff is scheduling a technical team meeting to develop a scope of work to address issues identified in the previous meetings. Performance Measures Staff will be presenting the Performance Measures Policy to the Executive Board for information. The deliverables of this project will include a Performance Management Policy and coordinated plan with the NTD requirements. Other Development Activities Title VI Next submittal will be October More Information: Rhonda Jalbert, Development Director, rjalbert@valleyregionaltransit.org 96

100 ITEM VII-E TOPIC: Finance and Administration Activity Report DATE: November 13, 2018 Summary This memo provides an update on the accomplishments of the Finance and Administration Department. VRT Strategic Plan Goal 1 Demonstrate responsible stewardship of public resources. Highlights: Budget/Finance VRT Finance staff closed FY2018 and is compiling financial information for submission to the Authority s independent auditors for the annual audit. Finance Staff is working on coordinating the Social Security 218 Referendum process for the Authority including correspondence with the Board, current and past employees. Finance and Development Staff are working on documenting procedures in the Finance and Organizational Capacity Workgroup. This working group reviews policy, procedures, and emerging financial and organizational capacity issues for the organization. Procurement The Procurement Calendar that documents procurements through FY2019 has been updated. VRT Finance, Operations and Development staff are currently working on finalizing and issuing the following procurements for FY2019 QR-1: o Bus Bench - Revenue Generating Advertising o Mobile Ticketing o Boise Green Bike Support Vehicle o Automatic Passenger Counters o Audit Services Grant Management Sub-Recipient agreement has been prepared and executed for Treasure Valley Transit for FY19-20 funding. Staff has finalized the ACHD agreement, and it is currently pending execution. FTA s grant application (TrAMS) has opened back up. Staff will start inputting FY19 grant applications and remaining FY18 grants once project balancing has been completed, all projects have been identified and funding amount levels determined. The following FY2018 Grants listed below have not been awarded as of the date of this memorandum. VRT is waiting for CWI and City of Nampa final subrecipient agreements to be signed. Grant applications have been input for these projects and are presently pending FTA grant review, approval, and executed agreements. HVAC/AboveBeyond/ACHD Vans FY18 grant application is pending input. 700 N. East 2nd Street, Suite 100 Meridian, ID p: f:

101 ITEM VII-E TrAMS is now open. Applications will be input. For More Information: Contact Kelli Badesheim, Executive Director, (208) , or e- mail 98