Next Capital Funding Agreement

Finance & Administration Committee Action Item II-A April 22, 2010 Next Capital Funding Agreement

The Next Capital Funding Agreement and the 2011-2016 Capital Program Finance and Administration Committee April 22, 2010

Purpose To update the Board on the progress of the Next Capital Funding Agreement and changes to the FY2011-16 Proposed Capital Improvement Program (CIP)

Glossary System Performance Funds jurisdictional funds over and above those funds required to match any Federal grant (previously know as local additional funds )

Next Capital Funding Agreement and 2011-2016 Capital Program Next Capital Funding Agreement

Benefits of a Multi-Year Funding Agreement Provides steady stream of funding and minimizes debt and cost of capital Ahi Achieves economies of scale Includes a financial plan that incorporates financing to smooth out peaks and valleys inherent in funding multi-year programs Allows jurisdictional partners to plan their multi-year capital improvement programs (CIPs) Saves partners money on pay-as-you-go expenditure basis Ensures that jurisdictions get what they sign on for if the project list j g y g p j is fixed over time

No Funding Agreement Line of Credit Line of Credit ($500M Rail Cars and $400M General) Meets Section 22 of the Compact Provides ongoing cash-flow support Provides backstop if funds are not appropriated Advantages Increased funding flexibility for compact jurisdictions Supports long-term contracting needs of multi-year projects Allows for increases in Metro capital funding Disadvantages Potentially yperceived as a reduction in region s support for Metro Allows for decreases in Metro capital funding Implementation Issues/ Concerns Assuming feasible, cost of purchasing lines of credit estimated at $55M over FY2011-16 CIP timeframe

Partial Agreement for Long-term Contracts Only Partial Agreement for Long-term contracts t only Line of credit (LOC) to support annual program ($250M) Advantages Increased funding flexibility for compact jurisdictions Supports long-term contracting needs of multi-year projects, and reduces contracting and financing costs Allows increased capital funding for general capital needs Disadvantages Creates separate classes of capital projects with separate project controls Projects funded separately might avoid needed oversight May privilege "highprofile" projects over basic maintenance Allows decreased capital funding for general capital Implementation Issues/ Concerns Cost of purchasing LOC estimated at $12M over FY2011-16 CIP timeframe Negotiating separate agreements for different classes of projects could add delay and cost Possible incentive to pack projects into partial agreements to assure their funding

Flexible Six-Year Agreement Flexible Six-Year Agreement minimum funding commitment to match Federal funds, and to annually assess availability of additional funds Line of credit to support annual program ($250M) Advantages Demonstrates commitment to Metro capital funding needs Preserves funder flexibility Reduces contracting and financing costs All projects under one roof supports oversight and spending efficiency Allows for increases in Metro capital funding Disadvantages Establishes only a minimum funding commitment Minimum commitment could be confused for "full" commitment t Allows for decreases in Metro capital funding Implementation Issues/ Concerns Cost of purchasing LOC estimated at $5M over FY2011-16 CIP timeframe Would require annual discussions i with jurisdictions above minimum funding commitment

Steps in formulating the Multi-Year Funding Agreement September 2009 December 2009 March 2010 FAO Committee presentation on the Next Capital Funding Agreement options JCC Working Group sessions on the Multi-Year Funding Agreement and FY 2011-16 16 Capital Improvement Program (CIP) January 2010 Proposed 2011-16 Budget and CIP presented to the FAO Committee March 2010 JCC and jurisdictional CFOs received draft copy of the Multi-Year Funding Agreement

Timeline for Jurisdictional and Board Actions April 22 Authorization to negotiate consistent with an approved funding approach April - May Jurisdictional and Metro staff refine agreement language May FA Committee Committee review of draft agreement and referral to Board May Board Approval of agreement and distribution to jurisdictions for signature Late May Jurisdictional staff initiate processes for required approvals Week of June 7 Public Roundtable by Council of the District of Columbia Committee on Public Works and Transportation June 7 or 21 City of Falls Church City Council Work Session June 8 (tentative) Washington Suburban Transit Commission Meeting June 12 Arlington County Board Meeting June 15 Council of the District of Columbia Meeting Committee of the Whole June 22 Meetings of the Fairfax County Board of Supervisors, Alexandria City Council and City of Fairfax Council June 28 City of Falls Church City Council Meeting June 30 General Manager execution of agreement

Next Capital Funding Agreement and 2011-2016 Capital Program 2011-20162016 Capital Program

FY11-16 16 CIP Key Points Current program is mainly focused on state of good repair Expansion/enhancement is extremely limited What Is Funded Funding reserved for NTSB Recommendations Replacement of 300 oldest rail cars Rehabilitation of oldest segments of rail system Replacing and rehabilitating dilapidated bus garages What Isn t Funded Station entrance canopies Expansion of bus fleet to provide more and improved bus service Investment in IT modernization slowed Delayed start on 8-Car Train Power Upgrades Test Track & Commissioning Facility

CIP Assumptions Source of Funds Proposed Budget Revised Budget Federal Formula Grants 4-5% growth 1% growth in FY 2011, 4% FY 2012-13, and 5% FY 2014-16 Systems Performance $108M annually $22M in FY 2011, $70M Funds (local additional) in FY 2012, and $108M FY 2013-16 Debt $442M $179M Use of Funds Program Management Stand alone project, Allocated to each project allocated to the entire program

Revisions to the Proposed FY2011-16 16 CIP ($ Millions) FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Total Proposed FY11-16 CIP $718.3 $759.1 $764.4 $763.8 $1,039.9 $983.7 $5,029.2 A) Projected Less Growth in Federal Funds (8.9) (9.3) (12.9) (13.5) (14.2) (14.9) (73.8) B) Pro forma analysis for jurisdiction constraints (85.8) (37.6) 0.0 48.1 (183.8) (127.3) (386.3) C) Revisions for 7000 Series Rail Cars 35.2 0.0 2.1 39.6 8.6 (230.7) (145.2) D) Revisions for 4000 Series Rail Cars 0.0 (1.3) (1.4) 0.2 (51.7) 114.7 60.6 E) Revisions for Credit Facility 1.5 1.5 1.5 1.5 1.5 1.5 9.0 F) Revisions for NTSB Recommendations 10.0 10.0 10.0 0.0 0.0 0.0 30.0 G) Revisions for Preventive Maintenance 30.0 0.0 0.0 0.0 0.0 0.0 30.0 H) Priority projects added to the January Proposed CIP 50.6 24.4 6.0 0.0 0.0 0.0 81.1 J) Add Rail Rehab. Tier 1: Dupont to Grosvenor 0.0 0.0 0.0 40.5 50.0 50.0 140.5 K) Add Rail Mileage-based Asset Management 2.2 2.2 L) Add Cheverly Abutment 2.3 2.3 M) Projects reduced or removed Proposed CIP (C to L) (131.8) (34.6) (18.2) (81.8) (8.4) 64.4 (210.5) Total Revisions (94.7) (46.9) (12.9) 34.6 (198.0) (142.2) (460.1) Revised FY11-16 CIP $623.6 $712.3 $751.6 $798.4 $841.8 $841.5 $4,569.1

Revisions to Sources of Funds for FY2011 Proposed Revised Budget Book Budget FY2011 FY2011 Change Federal Funds: Federal Formula Grant Funds: Section 5307 Grant $144.0 $139.9 ($4.1) Section 5309 Grant 104.5 101.5 (3.1) Subtotal - Formula Grants $248.6 $241.4 ($7.1) Fd Federal lddi Dedicated tdfunds 150.00 150.00 00 0.0 Subtotal: Federal Funds 398.6 391.4 (7.1) State and Local Funds: Match to Federal Formula Grants 62.1 60.4 (1.8) System Performance Funds 107.6 21.8 (85.8) Match to Federal Dedicated Funds 150.0 150.0 0.0 Subtotal: State and Local Funds 319.7 232.1 (87.6) Grand Total $718.3 $623.6 ($94.7) Changes: Federal Formula Grants and the required match will be lower then anticipated System Performance Funds (formerly known as local additional funds) were reduced to equal anticipated contributions

Revisions to Sources of Funds for FY2011-16 16 Proposed Revised Budget Book Budget FY2011-16 FY2011-16 Change Federal Funds: Federal Formula Grant Funds: Section 5307 Grant $971.8 $937.9 ($33.9) Section 5309 Grant 705.2 680.0 (25.1) Subtotal - Formula Grants $1,676.9 6 $1,617.9 ($59.0) Federal Dedicated Funds 900.0 900.0 0.0 Subtotal: Federal Funds 2,576.9 2,517.9 (59.0) State and Local Funds: Match to Federal Formula Grants 419.2 404.5 (14.8) System Performance Funds 645.4 522.2 (123.2) Match to Federal Dedicated Funds 900.0 900.0 0.0 Subtotal: State and Local Funds 1,964.6 1,826.7 (137.9) Misc. CIP Funding Sources 46.0 46.0 00 0.0 Total without Debt 4,587.5 4,390.6 (197.0) Debt Strategy 441.6 178.6 (263.1) Grand Total $5,029.2 $4,569.1 ($460.1)

Revisions to Use of Funds for FY2011 Proposed Revised Budget Book Budget FY2011 FY2011 Change Impact Statement A Vehicles/ Vehicle Parts $224.6 $282.5 $57.9 Milestone payment for 1000 Series Rail Cars B Rail System Infrastructure Rehabilitation 134.0 75.4 Delay start of Rail Rehab. on National Airport (58.6) to Stadium Armory C Maintenance Facilities 125.5 44.3 Delay starts on Maintenance of Bus Garages (81.2) and Rail Yards Delay start on 8-Car Train Power upgrade D Systems and Technology 76.5 41.8 (34.7) and other support software E Track and Structures 57.7 61.6 3.9 Applied Project Administration to projects F Passenger Facilities 31.8 66.7 Add new project for System-wide 35.0 Infrastructure Rehabilitation G Maintenance Equipment 32.7 41.1 8.4 Applied Project Administration to projects H Other Facilities 10.8 5.1 Delay start of Police Substations and CTF (5.7) Parking Garage I Program Management 24.7 5.0 (19.7) Applied Project Administration to projects Total $718.3 $623.6 ($94.7) Defers operational improvements and state of good repair

Revisions to Use of Funds for FY2011-1616 Proposed Revised Budget Book Budget FY2011-16 FY2011-16 Change Impact Statement Reflects current projection to meet contract costs for 1000 Series rail car replacement. A Vehicles/ Vehicle Parts $2,156.7 $2,059.2 2 ($97.5) B Rail System Infrastructure Rehabilitation 730.4 748.7 18.3 Applied Project Administration to projects C Maintenance Facilities 756.2 627.4 Delay starts on Expansion of Bus Garages (128.7) and Maintenance of Rail Yards D Systems and Technology 405.9 263.7 Delay start on 8-Car Train Power upgrade (142.2) 2) and other support software E Track and Structures 314.7 326.8 12.1 Applied Project Administration to projects F Passenger Facilities 215.0 259.5 Add new project for System-wide 44.5 Infrastructure Rehabilitation G Maintenance Equipment 198.8 231.6 32.8 Applied Project Administration to projects Delay start of Police Substations and CTF H Other Facilities 85.1 19.6 (65.5) Parking Garage I Program Management 166.4 32.5 (133.9) Applied Project Administration to projects Total $5,029.2 $4,569.1 ($460.1) Defers operational improvements and state of good repair

Revisions to Use of Funds: Example $ in Millions Project Proposed 6 Revised Project Name Adjustments Number Year Budget Budget CIP057 1000 Series Rail Car Replacement 830.7 (123.2) 707.5 Impact Reflects current projection to meet contract costs. Note: A detailed list of revisions are in the appendix

Next Capital Funding Agreement and 2011-2016 Capital Program Federal Dedicated d Funding

Federal Dedicated Funds Proposed FY2011 Budget and FY2011-16 16 CIP includes: Anticipated $300 million in federal dedicated funds Local matching funds for rail safety system projects In May, Metro will ask the Transportation Planning Board to amend the Transportation Improvement Program (TIP) to include the recommended projects that will use these funds Beginning July 1, jurisdictions will be billed quarterly for local match to g g y, j q y dedicated funds

Federal Dedicated Funds Calendar April 22 Metro Board Meeting April 23 Send project budgets and descriptions to FTA Administrator Apr 26-May 7 FTA review (Estimated. FTA has not provided a timeline.) May 7 COG/TPB Steering Committee May 10-14 Revise and finalize grant application with FTA local officials May 7-10 Post notice of hearing and comment period May 19 TPB Meeting / Metro Public Hearing May 24 Close comment period (two weeks since posting notice) May 26 Submit grant application May 26 DDOT sends STIP amendment request to FTA May 26-June 3 FTA approval of STIP (FTA estimates quick approval.) July 1 Grant award (35 days after submission)

Federal Dedicated Funding Projects CIP ID Project Name FY2011 FY2012 RAIL CAR FLEET REPLACEMENT AND REHABILITATION $89.543 $15.035 CIP057 1000 Series Rail Car Replacement $67.126 $0.000 CIP063 Rail Rehabilitation Program 12.415 12.534 CIP067 Rail Car Safety & Reliability Enhancements 10.001 2.501 TRACK SAFETY IMPROVEMENTS $60.240 $51.431 CIP018 Track Welding Program $1.464 $2.658 CIP019 Track Floating Slab Rehabilitation 1.724 1.261 CIP020 Replacement of Rail Track Signage 1.012 1.061 CIP021 Track Pad/Shock Absorber Rehabilitation 4.325 2.049 CIP022 Track Structural Rehabilitation 2.328 1.543 CIP023 Third Rail Rehabilitation 0.000 5.523 CIP024 Track Rehabilitation 44.364 33.302 CIP027 Switch Machine Rehabilitation Project 0906 0.906 0950 0.950 CIP133 Wayside Work Equipment 4.115 3.083 TRACK EQUIPMENT $22.040 $31.012 CIP025 Track Maintenance Equipment $17.259 $20.729 CIP065 Geometry Vehicle 0.563 4.015 CIP066 Rail Shop Repair Equipment 2.161 4.213 CIP089 Track Fasteners 2.058 2.055 MAJOR RAIL LINE SEGMENT OVERHAUL $75.414 $160.123 CIP107 Rail Rehabilitation Tier 1: Dupont to Silver Spring $56.901 $65.545 CIP110 Rail Rehabilitation Tier 1: National Airport to Stadium Armory 18.513 60.807 CIP116 Rail Yard Facility Repairs Tier 1: Alexandria, Brentwood and New Carrollton 0.000 33.771 PREVENTIVE MAINTENANCE $41.246 $20.820 CIP125 Rail Preventive Maintenance $41.246 $20.820 TRACK SIGNAL IMPROVEMENTS $1.229 $11.303 CIP135 Train Control Signal $1.029 $10.275 CIP136 FCC Radio Frequency Communication Changes 0.200 1.028 NTSB RECOMMENDATIONS $10.289 $10.275 CIP139 NTSB Recommendations $10.289 $10.275 Total $300.000 $300.000

Debt Service and Capital Contribution Prince District of Montgomery Georges City of Arlington Fairfax Fairfax Falls Columbia County County Alexandria County City County Church Total Series 1993 and 2003 (1) $ 10.3 $ 4.9 $ 4.9 $ 1.4 $ 2.7 $ 0.0 $ 3.2 $ 0.0 $ 27.5 Series 2009A & 2009B (2) 10.7 5.0 5.5 - - - - 0.1 21.2 Total Debt Service $ 21.0 $ 9.8 $ 10.4 $ 1.4 $ 2.7 $ 0.0 $ 3.2 $ 0.1 $ 48.7 Percent of Total 43.2% 20.2% 2% 21.3% 2.9% 5.6% 0.1% 6.5% 0.2% 100% Revised Capital Program $ 31.0 $ 14.2 $ 15.7 $ 3.4 $ 6.2 $ 0.2 $ 11.2 $ 0.2 $ 82.1 37.8% 17.3% 19.1% 4.1% 7.6% 0.2% 13.6% 0.2% 100% Total $ 52.0 $ 24.0 $ 26.1 $ 4.8 $ 8.9 $ 0.2 $ 14.4 $ 0.3 $ 130.8 Note 1: The final maturity for 1993 bonds is FY2011 and FY2015 for 2003 bonds. Note 2: The final maturity for 2009 bonds is FY2034. Note: Does not include local match to federal dedicated funding

Next Steps May Metro Board approval of the Next Capital Funding Agreement June Jurisdictional approval of the Next Capital Funding Agreement and Metro Board approval of the FY2011 Capital Budget and FY2011-16 Capital Improvement Plan July 1 Fiscal Year 2011 begins

Appendix

Proposed Budget Book Source of Funds with Jurisdictional Contribution Annual Work Plan Year: FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Total Federal Funds: Budget Forecast Forecast Forecast Forecast Forecast FY2011-16 Federal Formula Grant Funds: Section 5307 Grant $144.0 $149.8 $157.3 $165.2 $173.4 $182.1 $971.8 Section 5309 Grant 104.5 108.7 114.11 119.8 125.8 132.11 705.2 Subtotal - Formula Grants $248.6 $258.5 $271.4 $285.0 $299.2 $314.2 $1,676.9 Federal Dedicated Funds 150.0 150.0 150.0 150.0 150.0 150.0 900.0 Subtotal: Federal Funds $398.6 $408.5 $421.4 $435.0 $449.2 $464.2 $2,576.9 State and Local Funds: Match to Federal Formula Grants $62.1 $64.6 $67.9 $71.2 $74.8 $78.6 $419.2 Local Additional Funds 107.6 107.6 107.6 107.6 107.6 107.6 645.4 Subtotal: Federal Match & Local 169.7 172.2 175.4 178.8 182.4 186.1 1,064.6 District of Columbia $64.0 $64.9 $66.1 $67.4 $68.8 $70.2 $401.4 Montgomery County $29.4 $29.8 $30.3 $30.9 $31.6 $32.2 $184.2 Prince Georges County 32.4 32.9 33.5 34.2 34.8 35.5 203.3 Maryland Subtotal 61.8 62.7 63.9 65.1 66.4 67.77 387.5 Alexandria 7.0 7.1 7.2 7.3 7.5 7.6 43.6 Arlington County 12.9 13.1 13.3 13.6 13.9 14.1 80.9 City of Fairfax 0.5 0.5 0.5 0.5 0.5 0.6 3.2 Fairfax County 23.1 23.4 23.9 24.3 24.8 25.3 144.8 Falls Church 0.5 0.5 0.5 0.5 0.5 0.6 3.2 Virginia i i Subtotal $44.0 $44.6 $45.4 4 $46.3 $47.2 $48.2 $275.77 Subtotal: Contributions $169.7 $172.2 $175.4 $178.8 $182.4 $186.1 $1,064.6 Match to Federal Dedicated Funds 150.0 150.0 150.0 150.0 150.0 150.0 900.0 Subtotal: State and Local Funds $319.7 $322.2 $325.4 $328.8 $332.4 $336.1 $1,964.6 Misc. CIP Funding Sources - 28.4 17.6 - - - 46.0 Total without Debt $718.3 $759.1 $764.4 $763.8 $781.6 $800.3 $4,587.5 Debt Strategy - - - - 258.2 183.4 441.6 Grand Total $718.3 $759.1 $764.4 $763.8 $1,039.9 $983.7 $5,029.2

Revised Source of Funds with Jurisdictional Contribution Annual Work Plan Year: FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Total Federal Funds: Budget Forecast Forecast Forecast Forecast Forecast FY2011-16 Federal Formula Grant Funds: Section 5307 Grant $139.9 $145.5 $151.4 $158.9 $166.9 $175.2 $937.9 Section 5309 Grant 101.5 105.5 109.7 115.2 121.0 127.0 680.0 Subtotal - Formula Grants $241.4 $251.1 $261.1 $274.2 $287.9 $302.3 $1,617.9 Federal Dedicated Funds 150.0 150.0 150.0 150.0 150.0 150.0 900.0 Subtotal: Federal Funds $391.412 $401.068 $411.111 $424.167 $437.875 $452.269 $2,517.902 State and Local Funds: Match to Federal Formula Grants $60.4 $62.8 $65.3 $68.5 $72.0 $75.6 $404.5 Local Additional Funds 21.8 70.0 107.6 107.6 107.6 107.6 522.2 Subtotal: Federal Match & Local 82.1 132.8 172.9 176.1 179.6 183.2 926.7 District of Columbia 31.0 50.1 65.2 66.4 67.7 69.1 349.4 Montgomery County 14.2 23.0 29.9 30.5 31.1 31.7 160.3 Prince Georges County 15.7 25.4 33.0 33.6 34.3 35.0 177.0 Maryland Subtotal 29.9 48.3 62.9 64.1 65.4 66.7 337.3 Alexandria 3.4 5.4 7.1 7.2 7.4 7.5 38.0 Arlington County 6.2 10.1 13.1 13.4 13.6 13.9 70.4 City of Fairfax 0.2 0.4 0.5 0.5 0.5 0.5 2.8 Fairfax County 11.2 18.1 23.5 24.0 24.4 24.9 126.0 Falls Church 0.2 0.4 0.5 0.5 0.5 0.5 2.8 Virginia Subtotal 21.3 34.4 44.8 45.6 46.5 47.4 240.0 Subtotal: Contributions 82.1 132.8 172.9 176.1 179.6 183.2 926.7 Match to Federal Dedicated Funds 150.0 150.0 150.0 150.0 150.0 150.0 900.0 Subtotal: State and Local Funds $232.1 $282.8 $322.9 $326.1 $329.6 $333.2 $1,826.7 Misc. CIP Funding Sources - 28.4 17.6 - - - 46.0 Total without Debt $623.6 $712.3 $751.6 $750.3 $767.4 $785.4 $4,390.6 Debt Strategy - - - 48.1 74.4 56.1 178.6 Grand Total $623.6 $712.3 $751.6 $798.4 $841.8 $841.5 $4,569.1

Estimate Debt Service for Capital Program Prince District of Montgomery Georges City of Arlington Fairfax Fairfax Falls $ in millions Columbia County County Alexandria County City County Church Total Series 2014 ($48M) $1.32 $0.61 $0.67 $0.14 $0.27 $0.01 $0.48 $0.01 $3.50 Series 2015 ($74M) $2.07 $0.95 $1.05 $0.23 $0.42 $0.02 $0.75 $0.02 $5.50 Series 2016 ($56M) $1.55 $0.71 $0.78 $0.17 $0.31 $0.01 $0.56 $0.01 $4.10

Proposed Budget Book - Use of Funds Capital Improvement Program (CIP) Costs: FY2011-2016 (dollars in millions) A B C D Annual Work Plan Year: FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Total Budget Forecast Forecast Forecast Forecast Forecast FY2011-16 Vehicles/ Vehicle Parts Replacement of Rail Cars $30.1 $0.0 $0.0 $90.3 $356.7 $353.7 $830.7 Replacement of Buses 73.3 71.6 74.1 76.7 104.6 82.2 482.4 Rehabilitation of Rail Cars 44.4 32.6 30.6 51.4 82.0 97.2 338.2 Rehabilitation of Buses 38.7 54.2 55.0 55.5 64.3 66.7 334.4 Replacement of MetroAccess Vehicles 14.6 8.4 9.3 9.9 10.4 10.8 63.5 Replacement of Service Vehicles 0.0 8.4 7.7 6.7 6.0 5.6 34.4 Rail Car Fleet Expansion 7.8 0.8 1.6 1.1 0.0 0.0 11.3 Bus Fleet Expansion 0.0 3.7 3.7 2.8 3.4 3.4 16.9 Bus Enhancements 15.7 16.5 12.6 0.0 0.0 0.0 44.8 Subtotal $224.6 $196.2 $194.7 $294.4 $627.3 $619.6 $2,156.7 Rail System Infrastructure Rehabilitation Rail Line Segment Rehabilitation $134.0 $129.9 $95.2 $167.8 $151.3 $52.2 $730.4 Subtotal $134.0 $129.9 $95.2 $167.8 $151.3 $52.2 $730.4 Maintenance Facilities Rehabilitation and Replacement of Bus Garages $71.5 $60.2 $119.9 $4.4 $0.0 $0.0 $256.0 Maintenance of Bus Garages 18.4 34.0 28.0 24.0 14.7 21.6 140.7 Maintenance of Rail Yards 4.3 31.9 38.4 36.2 29.6 10.9 151.3 Rail Maintenance Facilities 17.0 28.5 14.5 0.0 0.0 0.0 60.0 Environmental Compliance Projects 2.7 4.9 3.1 3.1 1.7 3.6 19.2 Maintenance Bus and Rail Facilities 5.1 5.1 5.1 5.1 5.1 5.1 30.6 Expansion of Bus Garages 6.5 12.0 13.0 9.1 0.0 57.8 98.4 Subtotal $125.5 $176.6 $222.0 $81.8 $51.2 $99.0 $756.2 Systems and Technology Power System Upgrades - Rail $13.5 $7.5 $3.5 $2.0 $1.5 $1.3 $29.3 Operations Support Software 24.1 35.33 37.2 39.1 34.1 38.88 208.6 Business Support Software & Equipment 17.2 18.5 17.6 23.6 24.6 23.4 125.0 Rail Fare Equipment 21.7 6.6 5.9 3.5 3.2 2.2 43.0 Subtotal $76.5 $67.9 $64.1 $68.2 $63.4 $65.7 $405.9

Proposed Budget Book - Use of Funds Capital Improvement Program (CIP) Costs: FY 2011-2016 (dollars in millions) Annual Work Plan Year: FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Total Forecast Forecast Forecast Forecast Forecast Forecast FY2011-16 E F G H I Track and Structures Track Rehabilitation $54.7 $47.1 $47.3 $45.6 $47.8 $52.3 $294.8 Station/Tunnel Rehabilitation 3.0 3.2 3.2 3.3 3.5 3.7 19.9 Subtotal $57.7 $50.3 $50.5 $49.0 $51.3 $55.9 $314.7 Passenger Facilities Elevator/Escalator l t Facilities $11.8 $16.2 $18.3 $19.3 $19.8 $16.3 $101.7 Maintenance of Rail Station Facilities 7.5 7.6 7.7 7.8 7.9 8.1 46.8 Bicycle & Pedestrian Facilities 0.8 0.8 0.8 0.8 0.8 0.5 4.5 Rail Station: Capacity/Enhancements 7.9 7.2 8.5 8.5 7.2 4.7 44.2 Bus Priority Corridor Improvements 2.8 2.8 2.8 2.8 2.8 2.8 16.9 Rail Station Equipment 0.9 0.0 0.0 0.0 0.0 0.1 1.0 Subtotal $31.8 $34.7 $38.2 $39.3 $38.6 $32.4 $215.0 Maintenance Equipment Rail Maintenance Equipment $29.3 $53.1 $39.5 $18.6 $16.5 $19.1 $176.2 Bus Repair Equipment 2.7 2.8 2.9 3.0 3.1 3.3 17.8 Business Facilities Equipment 0.8 0.8 0.7 0.7 0.9 0.8 4.8 Subtotal $32.7 $56.7 $43.2 $22.4 $20.5 $23.2 $198.8 Other Facilities Business Support Facilities $9.1 $9.2 $14.1 $1.1 $1.9 $5.3 $40.7 MTPD Support Facilities 1.7 12.3 17.2 9.4 3.8 0.0 44.4 Subtotal $10.8 $21.6 $31.3 $10.5 $5.7 $5.3 $85.1 Program Management and Support Program Management $21.2 $21.2 $21.2 $26.5 $26.5 $26.5 $142.9 Credit Facility 3.5 4.0 4.0 4.0 4.0 4.0 23.5 Subtotal $24.7 $25.2 $25.2 $30.5 $30.5 $30.5 $166.4 Total $718.3 $759.1 $764.4 $763.8 $1,039.9 $983.7 $5,029.2

Revised - Use of Funds Capital Improvement Program (CIP) Costs: FY2011-2016 (dollars in millions) A B C D Annual Work Plan Year: FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Total Budget Forecast Forecast Forecast Forecast Forecast FY2011-16 Vehicles/ Vehicle Parts Replacement of Rail Cars $67.1 $0.0 $2.1 $134.2 $377.1 $127.0 $707.5 Replacement of Buses 74.1 72.0 56.2 59.3 80.9 80.8 423.3 Rehabilitation of Rail Cars 71.2 37.2 35.1 58.5 36.5 224.2 462.7 Rehabilitation of Buses 47.6 48.8 54.3 54.1 58.7 60.5 324.0 Replacement of MetroAccess Vehicles 5.1 11.9 14.2 10.3 3.6 13.8 58.9 Replacement of Service Vehicles 0.0 8.6 8.0 7.0 0.0 5.7 29.3 Rail Car Fleet Expansion 8.0 0.8 1.7 1.1 0.0 0.0 11.6 Bus Fleet Expansion 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Bus Enhancements 9.4 19.1 13.5 0.0 0.0 0.0 42.0 Subtotal $282.5 $198.5 $185.0 $324.5 $556.8 $511.9 $2,059.2 Rail System Infrastructure Rehabilitation Rail Line Segment Rehabilitation $75.4 $126.4 $130.7 $183.5 $113.9 $118.8 $748.7 Subtotal $75.4 $126.4 $130.7 $183.5 $113.9 $118.8 $748.7 Maintenance Facilities Rehabilitation and Replacement of Bus Garages $27.0 $91.9 $114.6 $24.2 $0.0 $0.0 $257.7 Maintenance of Bus Garages 8.3 26.9 50.7 32.3 9.6 17.3 145.1 Maintenance of Rail Yards 0.0 32.8 39.5 41.9 15.1 26.8 156.1 Rail Maintenance Facilities 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Environmental Compliance Projects 28 2.8 51 5.1 32 3.2 32 3.2 18 1.8 38 3.8 19.8 Maintenance Bus and Rail Facilities 3.2 3.2 3.4 4.1 4.8 4.3 22.9 Expansion of Bus Garages 3.1 6.2 7.2 9.5 0.0 0.0 25.9 Subtotal $44.3 $166.0 $218.6 $115.1 $31.3 $52.2 $627.4 Systems and Technology Power System Upgrades - Rail $4.1 $0.0 $10.1 $8.0 $3.7 $2.1 $28.0 Operations Support Software 21.9 25.7 25.1 25.55 18.3 15.7 132.11 Business Support Software & Equipment 9.3 16.3 19.8 19.8 12.8 2.7 80.7 Rail Fare Equipment 6.5 1.9 1.3 1.3 4.9 7.0 22.9 Subtotal $41.8 $44.0 $56.2 $54.6 $39.7 $27.5 $263.7

Revised - Use of Funds Capital Improvement Program (CIP) Costs: FY 2011-2016 (Continued) (dollars in millions) Annual Work Plan Year: FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Total Budget Forecast Forecast Forecast Forecast Forecast FY2011-16 E F G H I Track and Structures Track Rehabilitation $58.6 $48.4 $48.6 $47.3 $49.5 $54.0 $306.3 Station/Tunnel Rehabilitation 3.1 3.3 3.3 3.5 3.6 3.8 20.5 Subtotal $61.6 $51.7 $51.9 $50.7 $53.1 $57.8 $326.8 Passenger Facilities Elevator/Escalator Facilities $11.6 $16.6 6 $18.8 8 $20.0 0 $21.0 $16.9 $104.9 Maintenance of Rail Station Facilities 51.6 38.1 17.2 8.1 8.2 8.4 131.6 Bicycle & Pedestrian Facilities 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Rail Station: Capacity/Enhancements 0.5 1.0 1.0 1.0 1.6 4.4 9.6 Bus Priority Corridor Improvements 2.1 2.1 2.1 2.1 2.1 2.1 12.4 Rail Station Equipment 0.9 0.0 0.0 0.0 0.0 0.1 1.0 Subtotal $66.7 $57.8 $39.1 $31.2 $32.8 $31.8 $259.5 Maintenance Equipment Rail Maintenance Equipment $37.5 $55.6 $50.9 $28.6 $4.2 $31.4 $208.3 Bus Repair Equipment 2.7 2.9 3.0 3.1 3.2 3.4 18.4 Business Facilities Equipment 0.8 0.8 0.7 0.8 0.9 0.8 4.9 Subtotal $41.1 $59.3 $54.7 $32.5 $8.4 $35.6 $231.6 Other Facilities Business Support Facilities $4.3 $1.5 $1.5 $0.5 $0.4 $0.3 $8.5 MTPD Support Facilities 0.8 1.6 8.3 0.3 0.0 0.0 11.1 Subtotal $5.1 $3.2 $9.8 $0.8 $0.4 $0.3 $19.6 Program Management and Support Program Management $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Credit Facility 50 5.0 55 5.5 55 5.5 55 5.5 55 5.5 55 5.5 32.5 Subtotal $5.0 $5.5 $5.5 $5.5 $5.5 $5.5 $32.5 Total $623.6 $712.3 $751.6 $798.4 $841.8 $841.5 $4,569.1

Revised - Use of Funds Project Details Capital Improvement Program (CIP) Costs: FY2011-2016 Annual Work (dollars in millions) Plan Year: FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Total Budget Forecast Forecast Forecast Forecast Forecast FY2011-16 A Vehicles/ Vehicle Parts Replacement of Rail Cars CIP057 1000 Series Rail Car Replacement $67.1 $0.0 $2.1 $134.2 $377.1 $127.0 $707.5 Subtotal $67.1 $0.0 $2.1 $134.2 $377.1 $127.0 $707.5 Replacement of Buses CIP006 Bus Replacement $74.1 $72.0 $56.2 $59.3 $80.9 $80.8 8 $423.33 Subtotal $74.1 $72.0 $56.2 $59.3 $80.9 $80.8 $423.3 Rehabilitation of Rail Cars CIP064 1000 Series Rail Car HVAC Rehabilitation $4.2 $1.1 $0.0 $0.0 $0.0 $0.0 $5.4 CIP058 2000/3000 Series Rail Car Mid-Life Rehabilitation 3.2 0.2 0.0 0.0 0.0 0.0 3.5 CIP060 4000 Series Rail Car Replacement 0.0 0.0 0.0 23.0 0.7 187.3 210.9 CIP067 Rail Car Safety & Reliability Enhancements 10.0 2.5 1.6 1.7 1.7 1.8 19.2 CIP063 Rail Rehabilitation Program 12.4 12.5 12.7 12.9 13.1 14.2 77.9 CIP125 Rail Preventive Maintenance 41.2 20.8 20.8 21.0 21.0 20.9 145.8 Subtotal $71.2 $37.2 $35.1 $58.5 $36.5 $224.2 $462.7 Rehabilitation of Buses CIP005 Bus Rehabilitation Program $19.2 $30.1 $30.8 $31.7 $32.5 $33.2 $177.5 CIP008 Bus Repairables 7.2 7.9 12.8 11.5 15.5 16.5 71.4 CIP137 Bus Preventive Maintenance 21.2 10.7 10.7 10.8 10.8 10.8 75.1 Subtotal $47.6 $48.8 $54.3 $54.1 $58.7 $60.5 $324.0 Replacement of MetroAccess Vehicles CIP015 MetroAccess Fleet Replacement $5.1 $11.9 $14.2 $10.3 $3.6 $13.8 $58.9 Subtotal $5.1 $11.9 $14.2 $10.3 $3.6 $13.8 $58.9 Replacement of Service Vehicles CIP009 Service Vehicle Replacement $0.0 $8.6 $8.0 $7.0 $0.0 $5.7 $29.3 Subtotal $0.0 $8.6 $8.0 $7.0 $0.0 $5.7 $29.3 Rail Car Fleet Expansion CIP062 6000 Series Rail Car Procurement $8.0 $0.8 $1.7 $1.1 1 $0.0 0 $0.0 0 $11.6 Subtotal $8.0 $0.8 $1.7 $1.1 $0.0 $0.0 $11.6 Bus Fleet Expansion CIP003 Bus Capacity Enhancements: Fleet Expansion $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Subtotal $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Bus Enhancements CIP001 Antenna Reduction/ Security Enhancements $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 CIP002 Automatic Vehicle Location Equipment Replacement 9.4 16.1 13.5 0.0 0.0 0.0 39.0 CIP007 Bus Camera Installation 0.0 3.0 0.0 0.0 0.0 0.0 3.0 Subtotal $9.4 $19.1 $13.5 $0.0 $0.0 $0.0 $42.0 Subtotal $282.5 $198.5 $185.0 $324.5 $556.8 $511.9 $2,059.2

Revised - Use of Funds Project Details Capital Improvement Program (CIP) Costs: FY 2011-2016 Annual Work (dollars in millions) Plan Year: FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Total Budget Forecast Forecast Forecast Forecast Forecast FY2011-16 B Rail System Infrastructure Rehabilitation Rail Line Segment Rehabilitation CIP108 Rail Rehabilitation Tier 1: Dupont to Grosvenor $0.0 $0.0 $0.0 $40.5 $50.0 $50.0 $140.5 CIP107 Rail Rehabilitation Tier 1: Dupont to Silver Spring 56.9 65.5 54.5 28.5 0.0 0.0 205.4 CIP110 Rail Rehabilitation Tier 1: National Airport to Stadium Armory 18.5 60.8 76.3 114.5 63.9 68.8 402.9 Subtotal $75.4 $126.4 $130.7 $183.5 $113.9 $118.8 $748.7 Subtotal $75.4 $126.4 $130.7 $183.5 $113.9 $118.8 $748.7 C Maintenance Facilities Rehabilitation and Replacement of Bus Garages CIP085 Royal Street Bus Garage Replacement (Cinder Bed Road) $16.4 $31.8 $48.0 $2.4 $0.0 $0.0 $98.7 CIP086 Southeastern Bus Garage Replacement (DC Village) 0.0 30.8 14.9 0.0 0.0 0.0 45.7 CIP084 Southern Avenue Bus Garage Replacement 10.5 29.3 51.7 21.8 0.0 0.0 113.2 Subtotal $27.0 $91.9 9 $114.6 $24.2 2 $0.0 0 $0.0 0 $257.77 Maintenance of Bus Garages CIP119 Bus Garage Facility Repairs Tier 1: Western, Northern and Landover $8.3 $25.9 $51.7 $32.3 $9.6 $17.3 $145.1 Subtotal $8.3 $25.9 $51.7 $32.3 $9.6 $17.3 $145.1 Maintenance of Rail Yards CIP116 Rail Yard Facility Repairs Tier 1: Alexandria, Brentwood and New Carrollton $0.0 $33.8 $38.5 $41.9 $15.1 $26.8 $156.1 Subtotal $0.0 $33.8 $38.5 $41.9 $15.1 $26.8 $156.1 Rail Maintenance Facilities CIP071 Test Track & Commissioning Facility $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Subtotal $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Environmental Compliance Projects CIP010 Environmental Compliance Projects $0.6 $0.7 $0.7 $0.7 $0.8 $0.8 $4.3 CIP011 Underground Storage Tank Replacement 2.1 4.4 2.5 2.4 1.0 3.0 15.5 Subtotal $2.8 $5.1 $3.2 $3.2 $1.8 $3.8 $19.8 Maintenance Bus and Rail Facilities CIP127 Support Equipment - MTPD $1.0 $1.0 $1.0 $1.0 $1.0 $1.0 $6.2 CIP126 Financial Planning, Project Administration, and System Wide Infrastructure Upgrades 2.2 2.2 2.4 3.0 3.7 3.2 16.7 Subtotal $3.2 $3.2 $3.4 $4.1 $4.8 $4.3 $22.9 Expansion of Bus Garages CIP078 Bladensburg Shop Reconfiguration $3.1 $6.2 $7.2 $9.5 $0.0 $0.0 $25.9 CIP038 Bus Garage Capacity Enhancements 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Subtotal $3.1 $6.2 $7.2 $9.5 $0.0 $0.0 $25.9 Subtotal $44.3 $166.0 $218.6 $115.1 $31.3 $52.2 $627.4

Revised - Use of Funds Project Details Capital Improvement Program (CIP) Costs: FY 2011-20162016 Annual Work (dollars in millions) Plan Year: FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Total Budget Forecast Forecast Forecast Forecast Forecast FY2011-16 D Systems and Technology Power System Upgrades - Rail CIP077 100 % 8-Car Train -- Power Upgrades $4.1 $0.0 $0.0 $0.0 $0.0 $0.0 $4.1 CIP076 8-Car Train Power Upgrades 0.0 0.0 10.1 8.0 3.7 2.1 23.9 Subtotal $4.1 $0.0 $10.1 $8.0 $3.7 $2.1 $28.0 Operations Support Software CIP042 Bus & Rail Asset Management Software $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 CIP043 Bus Operations Support Software 2.1 3.1 3.1 3.1 3.6 3.1 18.1 CIP044 Customer & Regional Integration 4.3 4.8 3.8 4.8 4.8 4.8 27.3 CIP045 Data Centers and Infrastructures 4.0 1.6 0.7 1.6 0.0 0.0 7.9 CIP047 Enterprise Geographic Information System 2.1 3.1 2.6 2.6 3.6 2.6 16.5 CIP052 Network and Communications 3.0 5.5 6.2 4.1 0.0 0.0 18.8 CIP053 Network Operations Center (NOC) 1.9 3.5 3.6 3.1 1.0 0.0 13.1 CIP051 Police Dispatch and Records Management 0.0 0.0 0.0 1.0 0.0 0.0 1.0 CIP140 Rail Mileage Based Asset Management 2.2 0.0 0.0 0.0 0.0 0.0 2.2 CIP056 Rail Operations Support Software 2.3 4.2 5.1 5.2 5.2 5.2 27.2 Subtotal $21.9 $25.7 $25.1 $25.5 $18.3 $15.7 $132.1 Business Support Software & Equipment CIP030 Currency Processing Machines $0.0 $1.4 $1.4 $0.0 $0.0 $0.0 $2.9 CIP054 Customer Electronic Communications & Outreach 0.0 3.3 2.8 2.1 0.0 0.0 8.2 CIP046 Document Management System 0.5 0.0 0.0 0.0 0.0 0.0 0.5 CIP049 Management Support Software 2.6 2.6 2.6 10.2 10.7 0.0 28.6 CIP050 Metro IT OneStop and Office Automation 1.1 3.1 7.5 3.2 2.1 2.1 19.1 CIP103 Police Portable Radio Replacement 0.7 0.7 0.7 0.0 0.0 0.7 2.7 CIP048 Sensitive Data Protection Technology 4.5 5.2 4.8 4.3 0.0 0.0 18.7 Subtotal $9.3 $16.3 $19.8 $19.8 $12.8 $2.7 $80.7 Rail Fare Equipment CIP091 Automatic Fare Collection Machines $0.0 $1.1 $1.0 $1.0 $4.6 $6.7 $14.5 CIP031 Debit/Credit Processing Requirements 19 1.9 03 0.3 03 0.3 03 0.3 03 0.3 03 0.3 32 3.2 CIP092 Ethernet Wiring for Rail Fare Machines 1.3 0.0 0.0 0.0 0.0 0.0 1.3 CIP032 Fare Media Encoders 1.0 0.6 0.0 0.0 0.0 0.0 1.6 CIP094 Improvements to Coin Collection Machines 2.3 0.0 0.0 0.0 0.0 0.0 2.3 CIP093 Maintaining NEXTFARE System 0.0 0.0 0.0 0.0 0.0 0.0 0.0 CIP097 Open Bankcard and Automatic Fare Collection Systems 0.0 $0.0 $0.0 0.0 0.0 0.0 0.0 Subtotal $6.5 $1.9 $1.3 $1.3 $4.9 $7.0 $22.9 Subtotal $41.8 $44.0 $56.2 $54.6 $39.7 $27.5 $263.7

Revised - Use of Funds Project Details Capital Improvement Program (CIP) Costs: FY 2011-2016 (dollars in millions) Annual Work Plan Year: FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Total Budget Forecast Forecast Forecast Forecast Forecast FY2011-16 E Track and Structures Track Rehabilitation CIP023 Third Rail Rehabilitation $0.0 $5.5 $4.2 $4.4 $4.6 $4.9 $23.6 CIP089 Track Fasteners 2.1 2.1 2.1 2.1 2.1 2.1 12.4 CIP019 Track Floating Slab Rehabilitation 1.7 1.3 1.3 1.6 1.6 1.7 9.2 CIP021 Track Pad/Shock Absorber Rehabilitation 4.3 2.0 2.22 2.3 2.4 2.5 15.7 CIP024 Track Rehabilitation 44.4 33.3 33.2 32.0 33.6 37.4 213.9 CIP022 Track Structural Rehabilitation 2.3 1.5 2.9 1.8 1.8 1.9 12.3 CIP141 Cheverly Abutment 2.3 0.0 0.0 0.0 0.0 0.0 2.3 CIP018 Track Welding Program 1.5 2.7 2.9 3.1 3.3 3.6 17.0 Subtotal $58.6 $48.4 $48.6 $47.3 $49.5 $54.0 $306.3 Station/Tunnel Rehabilitation CIP026 Station/Tunnel Leak Mitigation $3.1 $3.3 $3.3 $3.5 $3.6 $3.8 $20.5 Subtotal $3.1 $3.3 $3.3 $3.5 $3.6 $3.8 $20.5 Subtotal $61.6 $51.7 $51.9 $50.7 $53.1 $57.8 $326.8 F Passenger Facilities Elevator/Escalator Facilities CIP072 Elevator Rehabilitation $2.4 $3.5 $2.3 $1.1 $1.7 $2.2 $13.1 CIP132 Elevator/Escalator Repairables 4.3 4.8 4.8 4.9 5.4 4.9 29.1 CIP073 Escalator Rehabilitation 4.9 8.3 11.7 14.0 14.0 9.8 62.7 Subtotal $11.6 $16.6 $18.8 $20.0 $21.0 $16.9 $104.9 Maintenance of Rail Station Facilities CIP132 Parking Lot Rehabilitation $43.9 $30.2 $9.3 $0.0 $0.0 $0.0 $83.4 CIP087 Station Enhancement Program 7.7 7.8 7.9 8.1 8.2 8.4 48.2 Subtotal $51.6 $38.1 $17.2 $8.1 $8.2 $8.4 $131.6 Bicycle & Pedestrian Facilities CIP035 Bicycle & Pedestrian Facilities: Capacity Improvements $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 CIP036 Replacement of Bicycle Racks & Lockers 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Subtotal $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Rail Station: Capacity/Enhancements CIP039 Core & System Capacity Project Development $0.5 $1.0 $1.0 $1.0 $1.6 $1.0 $6.2 CIP074 Installation of Parking Lot Credit Card Readers 0.0 0.0 0.0 0.0 0.0 3.4 3.4 CIP088 Station Entrance Canopies 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Subtotal $0.5 $1.0 $1.0 $1.0 $1.6 $4.4 $9.6 Bus Priority Corridor Improvements CIP037 Bus Priority Corridor Network Enhancements $2.1 $2.1 $2.1 $2.1 $2.1 $2.1 $12.4 Subtotal $2.1 $2.1 $2.1 $2.1 $2.1 $2.1 $12.4 Rail Station Equipment CIP099 Police Emergency Management Equipment $0.9 $0.0 $0.0 $0.0 $0.0 $0.1 $1.0 Subtotal $0.9 $0.0 $0.0 $0.0 $0.0 $0.1 $1.0 Subtotal $66.7 $57.8 $39.1 $31.2 $32.8 $31.8 $259.5

Revised - Use of Funds Project Details Capital Improvement Program (CIP) Costs: FY 2011-2016 Annual Work (dollars in millions) Plan Year: FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Total Budget Forecast Forecast Forecast Forecast Forecast FY2011-16 G Maintenance Equipment Rail Maintenance Equipment CIP136 FCC Radio Frequency Communication Changes $0.2 $1.0 $10.3 $9.3 $0.0 $0.0 $20.8 CIP065 Geometry Vehicle 0.6 4.0 1.7 0.2 0.0 0.0 6.5 CIP139 NTSB Recommendations 10.3 10.3 10.3 0.0 0.0 0.0 30.8 CIP066 Rail Shop Repair Equipment 2.2 4.2 4.2 4.2 4.2 4.2 23.3 CIP020 Replacement of Rail Track Signage 1.0 1.1 1.1 1.2 0.0 2.5 6.9 CIP027 Switch Machine Rehabilitation Project 09 0.9 10 1.0 10 1.0 11 1.1 00 0.0 12 1.2 51 5.1 CIP025 Track Maintenance Equipment 17.3 20.7 10.0 10.5 0.0 23.5 82.0 CIP135 Train Control Signal 1.0 10.3 10.3 0.0 0.0 0.0 21.6 CIP133 Wayside Work Equipment 4.1 3.1 2.1 2.1 0.0 0.0 11.3 Subtotal $37.5 $55.6 $50.9 $28.6 $4.2 $31.4 $208.3 Bus Repair Equipment CIP004 Bus Repair Equipment $2.7 $2.9 $3.0 $3.1 $3.2 $3.4 $18.4 Subtotal $2.7 $2.9 $3.0 $3.1 $3.2 $3.4 $18.4 Business Facilities Equipment CIP028 Materials Handling Equipment $0.2 $0.1 $0.1 $0.1 $0.2 $0.2 $0.9 CIP029 Warehouse Vertical Storage Units/Shelving 0.7 0.7 0.6 0.6 0.8 0.7 4.0 Subtotal $0.8 $0.8 $0.7 $0.8 $0.9 $0.8 $4.9 Subtotal $41.1 $59.3 $54.7 $32.5 $8.4 $35.6 $231.6 H Other Facilities Business Support Facilities CIP134 Carmen Turner Facility Parking Garage $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 CIP080 Jackson Graham Building Renovation 36 3.6 00 0.0 00 0.0 00 0.0 00 0.0 00 0.0 36 3.6 CIP033 Replacement of Revenue Facility Equipment 0.7 0.3 0.2 0.5 0.4 0.3 2.3 CIP034 Revenue Collection Facility (RCF) Building Expansion 0.0 1.3 1.3 0.0 0.0 0.0 2.6 Subtotal $4.3 $1.5 $1.5 $0.5 $0.4 $0.3 $8.5 MTPD Support Facilities CIP101 Police Substation- New District 2 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 CIP102 Police Substation-- New District 4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 CIP100 Police Training Facility 0.8 1.6 8.3 0.3 0.0 0.0 11.1 CIP106 Special Operations Division Facility 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Subtotal t $0.8 $1.6 $8.3 $0.3 $0.0 0 $0.0 0 $11.11 Subtotal $5.1 $3.2 $9.8 $0.8 $0.4 $0.3 $19.6 I Project Management and Support Program Management CIP130 Program Management $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Subtotal $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Credit Facility CIP131 Credit Facility $5.0 $5.5 $5.5 $5.5 $5.5 $5.5 $32.5 Subtotal $5.0 $5.5 $5.5 $5.5 $5.5 $5.5 $32.5 Subtotal $5.0 $5.5 $5.5 $5.5 $5.5 $5.5 $32.5 Total $623.6 $712.3 $751.6 $798.4 $841.8 $841.5 $4,569.1

Revisions to the Use of Funds $ in Millions Project Project Name Number Operational Improvements - Budget Deletions: CIP035 Bicycle & Pedestrian Facilities: Capacity Improvements Proposed 6 Year Budget Adjustments Revised Budget Impact 1.8 (1.8) 0.0 The cancellation of this project could result in a decrease in bicycle parking at rail stations and elimination of missing pedestrian connections to stations. CIP036 Replacement of Bicycle Racks & Lockers 2.6 (2.6) 0.0 Eliminates the replacement of structurally damaged and deteriorating bike racks and lockers. CIP038 Bus Garage Capacity Enhancements 59.3 (59.3) 0.0 This deferred schedule is consistent with the draft Bus Fleet Plan. No adverse impacts are expected by this change to the FY11-16 CIP. CIP042 Bus & Rail Asset Management Software 25.7 (25.7) 0.0 Maximo system (safety management, work order management) for Rail/Bus could become obsolete. This proposal will limit Metro's ability to manage asset replacement. CIP071 Test Track & Commissioning Facility 60.0 (60.0) 0.0 The acceptance testing of new railcar procurements, railcar engineer analysis, and enhancements to the fleet could be constrained to track rights availability. Monthly acceptance could be reduced from 16 to 8 to 12 a month without the facility. CIP093 Maintaining NEXTFARE System 5.4 (5.4) 0.0 This eliminates future fare collection software upgrades. CIP097 Open Bankcard and Automatic Fare Collection Systems 15.5 (15.5) 0.0 This project is delayed beyond the current 6-year plan. Custmers will continue to use SmarTrip cards. CIP101 Police Substation - New District 2 12.1 (12.1) 0.0 The current District 2 Police Substation is a 7,000 sq. ft. private residence that has been converted to a police station. The police, over an 100 officers, will continue to operate out of this overcrowded facility. CIP102 Police Substation - New District 4 12.5 (12.5) 0.0 Metro is researching the option of renting space in the Dulles corridor. CIP106 Special Operations Division Facility 9.0 (9.0) 0.0 The Special Operations Division of 67 memebers will continue to operate out of the trailer constructed for the 14 member K-9 unit. CIP134 Carmen Turner Facility Parking Garage 25.9 (25.9) 0.00 Rather than constructing a garage, Metro will pursue a surface lot. Total Operation Improvements Budget Deletions 229.8 (229.8) 0.0

Revisions to the Use of Funds (cont.) $ in Millions Project Proposed 6 Revised Project Name Adjustments Number Year Budget Budget Impact State of Good Repair - Budget Reductions: CIP006 Bus Replacement 482.4 (59.2) 423.3 Fewer buses (around 100) will be replaced resulting in a rising average fleet age above 7.5 years. Fleet reliability will be reduced as buses are kept in service longer. CIP009 Service Vehicle Replacement 34.4 (5.1) 29.3 Vehicles will be kept in service longer resulting in higher operating costs. CIP015 MetroAccess Fleet Replacement 63.5 (4.7) 58.9 Fleet reliability will be reduced as vehicles are kept in service longer. The replacement of vehicles will be included in the operating contract, increase the cost of the contract. CIP027 Switch Machine Rehabilitation Project 6.0 (0.9) 5.1 In FY2015, those switches that are used less frequently will not be replaced. CIP037 Bus Priority Corridor Network Enhancements 16.9 (4.5) 12.4 There will be fewer priority corridors implemented, reduced customer information projects, and reduced bus stop and station enhancements. CIP045 Data Centers and Infrastructures 35.9 (29.1) 6.9 In FY2015 and FY2016, Metro-wide Continuity of Operations (COOP)/Disaster Recovery Plan will not be built and deployed. Lack of backup data center exposes Metro s Rail operations to a critical loss of rail control system data. Without a backup Storage Area Network (SAN), Metro would be unable to provide data repositories for mission-critical applications. CIP046 Document Management System 15.3 (14.8) 0.5 There will be no electronic deployment of Rail safety and engineering drawing documents. CIP048 Sensitive Data Protection Technology 24.5 (5.8) 18.7 In FY2015 and FY2016, a reduction in funding could expose Metro to fines for PCI violations (Payment Card Industry fines, at $5K per ride credit card violation). As Metro s enterprise security systems are not fully deployed, at 90 Metro locations. CIP049 Management Support Software 38.5 (9.9) 28.6 In FY2016, could minimize the ability to remediate or upgrade PeopleSoft Human Resources, Finance, and Procurement functions (of 27 deployed PeopleSoft functions, 3 have been remediated to date). CIP050 Metro IT OneStop and Office Automation 29.3 (10.2) 19.1 Minimizes improvements to remote support systems and office automation initiatives.

Revisions to the Use of Funds (cont.) $ in Millions Project Number Project Name Proposed 6 Year Budget Adjustments State of Good Repair - Budget Reductions: CIP052 Network and Communications 29.7 (9.9) 19.8 In FY2015 and FY2016, the development of a robust network is slowed down, impacting rail and bus data reliability. CIP053 Network Operations Center (NOC) 20.9 (7.8) 13.1 Could delay recovery of critical Rail and Bus operations if they go down. CIP054 Customer Electronic Communications & Outreach 12.0 (3.8) 8.2 In FY2015 and FY2016, could reduce Metro's ability to communicate with its customers. CIP056 Rail Operations Support Software 35.4 (8.2) 27.2 Reduces scheduled upgrades. CIP057 1000 Series Rail Car Replacement 830.7 (123.2) 707.5 Reflects current projection to meet contract costs. CIP066 Rail Shop Repair Equipment 24.6 (1.3) 23.33 FY2011, slight reduction in project costs. CIP076 8-Car Train Power Upgrade 25.3 (1.4) 23.9 Delays upgrades to enable 8-Car Trains throughout the rail system. CIP078 Bladensburg Shop Reconfiguration 39.1 (13.2) 25.9 Reduces funding available to reconfigure the Bladensburg facility. Goal of the project is to increase the bus maintenance capacity once the Bus II project is completed. The project will upgrade electrical distribution and lighting, add additional bus lifts, rehabilitate the bus maintenance office, shop and nonrevenue shop. CIP080 Building Power Upgrade 10.0 (6.4) 3.6 Planned power upgrades at Metro facilities (Carmen Turner Facility and Stonestraw facility) will not be completed. CIP086 Southeastern Bus Garage Replacement 50.0 (4.3) 45.7 Project costs are anticipated to be lower than originally anticipated. CIP126 Financial Planning, Project Administration, and 24.6 (7.9) 16.7 Eliminates the authorities ability to respond to financial and System Wide Infrastructure Upgrades system wide emergencies. CIP136 FCC Radio Frequency Communication Changes 21.0 (0.2) 20.8 Slight reduction in project costs and could delay FCC required changes. CIP137 Bus Preventive Maintenance 92.2 (17.1) 75.1 Technical adjustment: reallocation of preventive maintenance between bus and rail. Total SOGR Budget Reductions 1,962.3 (348.7) 1,613.6 Revised Budget Impact

Revisions to the Use of Funds (cont.) $ in Millions Project Number Project Name Proposed 6 Year Budget Adjustments State of Good Repair - Budget Deletions: CIP001 Antenna Reduction/ Security Enhancements 4.0 (4.0) 0.0 The fleet will continue to have multiple antennas and lack the necessary security upgrades to prevent possible wireless intrusions. CIP003 Bus Capacity Enhancements: Fleet Expansion 16.9 (16.9) 0.0 The fleet will not expand to meet anticipated ridership growth. The result is buses kept in service longer to meet demand or overcrowding on bus routes, and fewer planned priority corridors. CIP088 Station Entrance Canopies 34.9 (34.9) 0.0 Eliminates the installation of the remaining canopies over exposed station entrance. CIP130 Program Management 142.9 (142.9) 0.00 Adjustments t reflect project cost reductions in the 6-year CIP program and reallocation to projects. Total SOGR Budget Deletions 198.8 (198.8) 0.0 State of Good Repair - Budget Increases: CIP002 Automatic Vehicle Location Equipment Replacement 37.9 1.1 39.0 Project administration added to project and delays AVL replacement within the six year plan. CIP004 Bus Repair Equipment 17.8 0.6 18.4 Project administration added to project CIP005 Bus Rehabilitation Program 172.1 5.4 177.5 Project administration added to project CIP007 Bus Camera Installation 2.9 0.1 3.0 Project administration added to project and delays bus camera installation within the six year plan. CIP008 Bus Repairables 70.2 1.2 71.4 Project administration added to project CIP010 Environmental Compliance Projects 4.2 0.1 4.3 Project administration added to project CIP011 Underground Storage Tank Replacement 15.0 0.5 15.5 Project administration added to project CIP018 Track Welding Program 16.5 0.5 17.0 Project administration added to project CIP019 Track Floating Slab Rehabilitation 8.9 0.3 9.2 Project administration added to project CIP020 Replacement of Rail Track Signage 6.7 0.1 6.9 Project administration added to project CIP021 Track Pad/Shock Absorber Rehabilitation 15.3 0.5 15.7 Project administration added to project CIP022 Track Structural Rehabilitation 11.9 0.4 12.3 Project administration added to project CIP023 Third Rail Rehabilitation 22.9 0.7 23.6 Project administration added to project Revised Budget Impact

Revisions to the Use of Funds (cont.) $ in Millions Project Number Project Name Proposed 6 Year Budget Adjustments Revised Budget State of Good Repair - Budget Increases: CIP024 Track Rehabilitation 207.4 6.5 213.9 Project administration added to project CIP025 Track Maintenance Equipment 79.6 2.4 82.0 Project administration added to project and delays the purchase of some equipment within the six year plan. CIP026 Station/Tunnel Leak Mitigation 19.99 0.6 20.5 Project administration added to project CIP028 Materials Handling Equipment 0.9 0.0 0.9 Project administration added to project CIP029 Warehouse Vertical Storage Units/Shelving 3.9 0.1 4.0 Project administration added to project CIP030 Currency Processing Machines 2.8 0.1 2.9 Project administration added to project and delays the purchase of currency processing machines within the six year plan. CIP031 Debit/Credit Processing Requirements 3.1 0.1 3.2 Project administration added to project CIP032 Fare Media Encoders 1.2 0.3 1.6 Project administration added to project CIP033 Replacement of Revenue Facility Equipment 2.3 0.1 2.3 Project administration added to project CIP034 Revenue Collection Facility (RCF) Building 2.5 0.1 2.6 Project administration added to project Expansion CIP039 Core & System Capacity Project Development 6.0 0.2 6.2 Project administration added to project and delays the project within the six year plan. CIP043 Bus Operations Support Software 17.5 0.6 18.1 Project administration added to project and delays the implementation of bus operation support software within the six year plan. CIP044 Customer & Regional Integration 26.5 0.8 27.3 Project administration added to project CIP047 Enterprise Geographic Information System 16.0 0.5 16.5 Project administration added to project and delays implementation of GIS within the six year plan. CIP051 Police Dispatch and Records Management 1.0 0.00 1.0 Project administration added to project CIP058 2000/3000 Series Rail Car Mid-Life 3.4 0.1 3.5 Project administration added to project Rehabilitation CIP060 4000 Series Rail Car Mid-Life Rehabilitation 143.4 67.6 210.9 The project costs reflect replacement, rather than rehabilitation of the 4000 series cars. CIP062 6000 Series Rail Car Procurement 11.3 0.3 11.6 Project administration added to project CIP063 Rail Rehabilitation Program 75.5 2.4 77.9 Project administration added to project CIP064 1000 Series Rail Car HVAC Rehabilitation 5.2 0.1 5.4 Project administration added to project CIP065 Geometry Vehicle 6.3 0.2 6.5 Project administration added to project CIP067 Rail Car Safety & Reliability Enhancements 18.7 0.6 19.2 Project administration added to project CIP072 Elevator Rehabilitation 12.7 0.4 13.1 Project administration added to project Impact