VTA Fares Took Effect in 2009, When VTA Increased the Base Fare from $1.75 to $2.00 and Also Raised Eco Pass Fares by Approximately 20%

Home , Evelyn station, Highway 17 Express

Administration and Finance Committee

Thursday, May 18, 2017 12:00 PM

VTA Conference Room B-106 3331 North First Street San Jose, CA

ADDENDUM TO AGENDA

24.X. ACTION ITEM – Recommend that the VTA Board of Directors approve the Special Event Service Policy.

ADMINISTRATION & FINANCE COMMITTEE

Thursday, May 18, 2017

12:00 PM

VTA Conference Room B-106 3331 North First Street San Jose, CA

AGENDA

CALL TO ORDER

1. ROLL CALL

2. PUBLIC PRESENTATIONS:

This portion of the agenda is reserved for persons desiring to address the Committee on any matter not on the agenda. Speakers are limited to 2 minutes. The law does not permit Committee action or extended discussion on any item not on the agenda except under special circumstances. If Committee action is requested, the matter can be placed on a subsequent agenda. All statements that require a response will be referred to staff for reply in writing.

3. ORDERS OF THE DAY

CONSENT AGENDA

4. ACTION ITEM -Approve the Regular Meeting Minutes of April 20, 2017.

5. ACTION ITEM -Recommend that the VTA Board of Directors review and accept the Fiscal Year 2017 Statement of Revenues and Expenses for the period ending March 31, 2017.

6. ACTION ITEM -Recommend that the VTA Board of Directors authorize the General Manager to purchase Property and Casualty insurance coverage for General and Auto Liability, Public Officials & Employment Practices Liability, Cyber Liability, Environmental Impairment & Pollution Liability, Crime, Blanket Railroad Protective Liability, and Property Insurance renewing the annual Operations Insurance Program for Fiscal Year 2018 for an amount not to exceed $3,500,000.

Santa Clara Valley Transportation Authority Administration & Finance Committee May 18, 2017 7. ACTION ITEM -Recommend that the VTA Board of Directors authorize the General Manager to execute a fixed fee contract with Tristar Risk Management for Workers' Compensation Third Party Claims Administrator (TPA) for a five year term, from July 1, 2017 through June 30, 2022. The total five year contract cost for claims services will not exceed $5,260,100.

8. ACTION ITEM -Recommend that the VTA Board of Directors authorize the General Manager to execute a contract with EK Health for Workers' Compensation Managed Care Services for a five-year term, from July 1, 2017 through June 30, 2022 for a total cost not to exceed $1,400,000.

9. ACTION ITEM -Recommend that the VTA Board of Directors authorize the General Manager to issue a developer solicitation for the Evelyn Joint Development site for the purpose of identifying a developer to recommend to the Board of Directors for an Exclusive Negotiations Agreement. The solicitation will seek developers to design, finance, build, and operate a 100% affordable housing development pursuant to a long- term ground lease from VTA.

10. ACTION ITEM -Recommend that the VTA Board of Directors authorize the General Manager to execute a contract with Granite Rock Company, the lowest responsive and responsible bidder, in the amount of $3,743,468 for the construction of SVBX Sitework plus a contingency amount of $1,310,214 (35% of the contract value) to address unforeseen and unforeseeable conditions due to the nature of the work.

11. ACTION ITEM -Recommend that the VTA Board of Directors adopt a resolution of findings that use of a Project Labor Agreement (PLA) in the C650 SVBX Sitework Contract will ensure the availability and stability of labor resources throughout the duration of construction.

12. ACTION ITEM -Recommend that the VTA Board of Directors authorize the General Manager to execute a contract with the lowest responsive and responsible bidder, for the construction of the De Anza College Stelling Road Bus Stop Improvement.

Note: Due to the timing of the bid opening on May 16, 2017, the bid review is not yet completed. Following bid review, a revised memorandum will be provided to the Board.

13. ACTION ITEM -Recommend that the VTA Board of Directors authorize the General Manager to amend the C836 Alum Rock Avenue Roadway, Busway and Station Improvements Contract with Ghilotti Construction Company by an amount of $2,663,038 for additional electrical and communications work for the Alum Rock - Santa Clara Bus Rapid Transit Project, increasing the total contract amount to $23,218,312.

14. ACTION ITEM -Recommend that the VTA Board of Directors authorize the General Manager to execute a purchase order, in an amount not to exceed $5,965,276 for console radios, subscriber radios and related equipment and professional services from Motorola Solutions, Inc., under the pricing terms and conditions obtained through the cooperative agreement dated September 25, 2012, between the County of Santa Clara and Motorola Solutions, Inc., for goods and related services for use on the Silicon Valley Regional Communications System (SVRCS) and the CAD/AVL (Computer Aided Dispatching- Automatic Vehicle Location) system. Page 2 Santa Clara Valley Transportation Authority Administration & Finance Committee May 18, 2017 15. ACTION ITEM -Recommend that the VTA Board of Directors authorize the General Manager to execute a contract with Sportworks Northwest Inc. of Woodinville, Washington for the purchase of 391 three-position exterior bike racks in the amount of $654,924.67. 16. ACTION ITEM -Recommend that the VTA Board of Directors adopt a program resolution for VTA's 2017 Through 2019 Low Carbon Transit Operations Program (LCTOP) for the VTA Zero Emission Bus project. 17. ACTION ITEM -Recommend that the VTA Board of Directors adopt a resolution authorizing the General Manager or Designee to file and execute grant applications, agreements, and certifications and assurances with the California Department of Transportation (Caltrans) for all current and future funds available through the Greenhouse Gas Reduction Fund (GGRF), Low Carbon Transit Operations Program (LCTOP). 18. ACTION ITEM -Recommend that the VTA Board of Directors approve an eligible list of three stormwater consultants to provide professional services on projects/programs that include, but are not limited, to the following categories: Phase II Small MS4 Permit, Industrial General Permit, Utility Vault and Underground Structures Permit, and Construction General Permit for Stormwater Consultant services with Engeo, Haley and Aldrich, and Keish Environmental; and authorize the General Manager to execute contracts with firms on this list. The list will be valid for a five-year period. The total amount of all contracts shall not exceed $4,000,000. 19. INFORMATION ITEM -Receive the Monthly Investment Report for March 2017. 20. INFORMATION ITEM -Review the Legislative Update Matrix. REGULAR AGENDA 21. ACTION ITEM - Recommend that the VTA Board of Directors adopt a resolution approving the Fiscal Years 2018 and 2019 Biennial Budget for the period July 1, 2017 through June 30, 2019. 22. ACTION ITEM -Recommend that the VTA Board of Directors:

1. Adopt a finding that a fare increase is necessary to meet operating expenses, including employee wages and fringe benefits and purchasing or leasing supplies, equipment, or materials.

2. Invoke a Statutory Exemption under CEQA, P. R.C. §21080(b)(8) and CEQA Guidelines Section 15273(a) (Rates, Tolls, Fares and Charges) for the purpose of modifying and increasing fares.

3. Adopt a resolution establishing rates and fares for VTA bus, light rail, and paratransit services effective January 1, 2018.

4. Adopt a resolution establishing rates and fares for VTA bus, light rail, and paratransit services effective January 1, 2019.

Page 3 Santa Clara Valley Transportation Authority Administration & Finance Committee May 18, 2017 23. ACTION ITEM -Recommend that the VTA Board of Directors authorize the General Manager to approve technology maintenance and support agreements with the specified technology firms for software and hardware support services. Each contract shall be for a maximum three-year period, with an option for two additional years, with an aggregate value not to exceed $5,500,000 for all agreements in the first three years and $3,850,000 for all agreements in years four and five.

24. ACTION ITEM -Recommend that the VTA Board of Directors authorize the General Manager to establish an on-call list of qualified firms for the following real estate consultant services: relocation assistance, appraisal, appraisal review, furniture/fixtures/equipment appraisal, goodwill valuation, title and escrow, and general real estate services. The General Manager will be authorized to negotiate and execute service contracts with the firms for a term of five years and a value not to exceed $11,000,000 for all firms combined. The contracts will have an option for an additional two year term, at a combined value not to exceed $4,400,000 for the option term.

OTHER ITEMS

25. Items of Concern and Referral to Administration.

26. Review Committee Work Plan. (Srinath)

27. Committee Staff Report. (Srinath)

28. Chairperson's Report. (Hendricks)

29. Determine Consent Agenda for the June 1, 2017, Board of Directors Meeting.

30. ANNOUNCEMENTS

31. ADJOURN

In accordance with the Americans with Disabilities Act (ADA) and Title VI of the Civil Rights Act of 1964, VTA will make reasonable arrangements to ensure meaningful access to its meetings for persons who have disabilities and for persons with limited English proficiency who need translation and interpretation services. Individuals requiring ADA accommodations should notify the Board Secretary’s Office at least 48-hours prior to the meeting. Individuals requiring language assistance should notify the Board Secretary’s Office at least 72-hours prior to the meeting. The Board Secretary may be contacted at (408) 321-5680 or [email protected] or  (408) 321-2330 (TTY only). VTA’s home page is www.vta.org or visit us on www.facebook.com/scvta.  (408) 321-2300: 中文 / Español / 日本語 / 한국어 / tiếng Việt / Tagalog.

Disclosure of Campaign Contributions to Board Members (Government Code Section 84308) In accordance with Government Code Section 84308, no VTA Board Member shall accept, solicit, or direct a contribution of more than $250 from any party, or his or her agent, or from any participant, or his or her agent, while a proceeding involving a license, permit, or other

Page 4 Santa Clara Valley Transportation Authority Administration & Finance Committee May 18, 2017 entitlement for use is pending before the agency. Any Board Member who has received a contribution within the preceding 12 months in an amount of more than $250 from a party or from any agent or participant shall disclose that fact on the record of the proceeding and shall not make, participate in making, or in any way attempt to use his or her official position to influence the decision. A party to a proceeding before VTA shall disclose on the record of the proceeding any contribution in an amount of more than $250 made within the preceding 12 months by the party, or his or her agent, to any Board Member. No party, or his or her agent, shall make a contribution of more than $250 to any Board Member during the proceeding and for three months following the date a final decision is rendered by the agency in the proceeding. The foregoing statements are limited in their entirety by the provisions of Section 84308 and parties are urged to consult with their own legal counsel regarding the requirements of the law.

All reports for items on the open meeting agenda are available for review in the Board Secretary’s Office, 3331 North First Street, San Jose, California, (408) 321-5680, the Monday, Tuesday, and Wednesday prior to the meeting. This information is available on VTA’s website at http://www.vta.org and also at the meeting.

NOTE: THE BOARD OF DIRECTORS MAY ACCEPT, REJECT OR MODIFY ANY ACTION RECOMMENDED ON THIS AGENDA.

Page 5 4

ADMINISTRATION & FINANCE COMMITTEE

Thursday, April 20, 2017

MINUTES

CALL TO ORDER

The Regular Meeting of the Administration and Finance Committee (A&F) was called to order at 12:05 p.m. by Chairperson Hendricks in Conference Room B-106, VTA River Oaks Campus, 3331 North First Street, San Jose, California.

1. ROLL CALL

Attendee Name Title Status Jeannie Bruins Member Present Larry Carr Vice Chairperson Absent John McAlister Alternate Member NA Dev Davis Alternate Member NA Sam Liccardo Member Present Glenn Hendricks Chairperson Present Daniel Harney Alternate NA Bob Nunez Alternate NA

*Alternates do not serve unless participating as a Member.

A quorum was present.

2. PUBLIC PRESENTATIONS

There were no Public Presentations.

3. ORDERS OF THE DAY

Chairperson Hendricks noted staff’s request to defer Agenda Item #15., Contract Award of Silicon Valley Express Lanes Electronic Toll Systems Integration Services.

M/S/C (Liccardo/Bruins) to accept the Orders of the Day.

NOTE: M/S/C MEANS MOTION SECONDED AND CARRIED AND, UNLESS OTHERWISE INDICATED, THE MOTION PASSED UNANIMOUSLY.

RESULT: APPROVED [UNANIMOUS] Orders of the Day MOVER: Sam Liccardo, Member SECONDER: Jeannie Bruins, Member AYES: Bruins, Hendricks, Liccardo NOES: None ABSENT: Carr

CONSENT AGENDA

Board Member Liccardo noted his recusal from the following Agenda items: Agenda Item #5., Montague Expressway Pedestrian Overcrossing Contract for Final Design and Engineering Services; and Agenda Item #8., I-280/Wolfe Road Interchange - Execute PA/ED Services Contract with HMH Engineers.

4. Meeting Minutes of March 16, 2017.

M/S/C (Bruins/Liccardo) to approve the Regular Meeting Minutes of March 16, 2017.

5. Montague Expressway Pedestrian Overcrossing Contract for Final Design and Engineering Services

On order of Chairperson Hendricks and there being no objection, the Committee forwarded the following item to the VTA Board of Directors without a recommendation: Authorize the General Manager to execute a contract in an amount not to exceed $1,200,150 with Biggs Cardosa and Associates, Inc. (BCA) to perform final design and engineering services for the Montague Expressway Pedestrian Overcrossing project.

6. Authorize General Manager to Execute Contract for SR 85 Transit Guideway Study

M/S/C (Bruins/Liccardo) to approve submitting a recommendation to the Board of Directors to authorize the General Manager to execute a contract with CDM Smith for an amount not-to-exceed $1,600,000 for a task order contract for the preparation of the State Route 85 Transit Guideway Study.

7. SR 237 Phase 2 Express Lanes Electronic Toll Systems Integrator – Contract Amendment #1

M/S/C (Bruins/Liccardo) to approve submitting a recommendation to the Board of Directors to authorize the General Manager to amend the contract with TransCore in an amount of $1,552,229 for the SR 237 Express Lanes Phase 2 Electronic Toll Systems (ETS) Integrator services and to use the new total contract amount of $7,452,556 to calculate the General Manager’s amendment authority under the Administrative Code Section 9.2(h). This amendment will cover the addition to the original scope of the development and implementation of a Violation Enforcement System (VES) and a fiber optic communications system to the Electronic Toll System for the SR 237 Express Lanes corridor.

Administration and Finance Committee Page 2 of 7 April 20, 2017

8. I-280/Wolfe Road Interchange - Execute PA/ED Services Contract with HMH Engineers

On order of Chairperson Hendricks and there being no objection, the Committee forwarded the following item to the VTA Board of Directors without a recommendation: Authorize the General Manager to execute contract amendments with HMH Engineers to perform Project Approval/Environmental Documentation (PA/ED) services in an amount not to exceed a total of $1,825,000 for the I-280/Wolfe Road Interchange Project, and further authorize the General Manager to negotiate and execute the necessary agreements with State, local and regulatory agencies to complete PA/ED phase tasks.

9. FY16-17 California Transit Security Grant Program - California Transit Assistance Fund (CTSGP-CTAF)

M/S/C (Bruins/Liccardo) to approve submitting a recommendation to the Board of Directors to adopt a resolution authorizing the General Manager or the Chief Operating Officer or the Director of Planning and Program Development or the General Counsel to file and execute grant applications and agreements with the State of California for California Transit Security Grant Program - California Transit Assistance Fund (CTSGP- CTAF) funds.

10. Quarterly Purchasing Report January 1 through March 31, 2017

M/S/C (Bruins/Liccardo) to review the Quarterly Purchasing Report for January 1 through March 31, 2017.

11. Monthly Investment Report - February 2017

M/S/C (Bruins/Liccardo) to receive the Monthly Investment Report for February 2017.

12. Legislative Update Matrix

M/S/C (Bruins/Liccardo) to approve submitting a recommendation to the Board of Directors to review the Legislative Update Matrix.

RESULT: APPROVED [UNANIMOUS] Consent Agenda Items #4,#6,#7,#9-12 MOVER: Jeannie Bruins, Member SECONDER: Sam Liccardo, Member AYES: Bruins, Hendricks, Liccardo NOES: None ABSENT: Carr

Administration and Finance Committee Page 3 of 7 April 20, 2017

REGULAR AGENDA

13. Next Network Final Plan

Adam Burger and Jim Unites provided an overview of the staff report and provided a presentation entitled “Proposed Final Transit Service Plan,” highlighting: 1) Project Goals; 2) Project Timeline; 3) Phase II Outreach; 4) 34 Changes from Draft Plan to Final Plan; 5) Reallocation of Service Hours; 6) Boarding’s Per Revenue Hour (Weekdays); 7) Subsidy Per Ride (Weekdays); 8) Expand Frequent Network; 9) Enhance Light Rail System; 10) More Weekend Service; 11) Connections to BART Stations; 12) Service Hierarchy; 13) Expanding Potential Transit Market; 14) Ridership Projections; 15) Paratransit Impacts; 16) Title VI Equity Analysis; 17) Next Steps; 18) Advisory Committee Comments; and 19) Questions.

Public Comment

Bradley Davis, West Valley College, thanked staff for their hard work in putting together the proposed plan noting, it helps preserve a large percentage of students traveling from San Jose to West Valley College. He believes this new proposed plan will now help increase ridership from San Jose to West Valley College.

Roland Lebrun, Interested Citizen, echoed Mr. Davis’ comments. Mr. Lebrun requested that an express train stop at the Tamien Station, which will relieve the parking congestion at Tamien. Mr. Lebrun further requested monthly monitoring of routes to determine its performance.

Discussion ensued about the following: 1) using 2016 Measure B funds to provide alternative transit to address service gaps; 2) any impacts the structural deficit might have on potential service; 3) staff’s excellent work on the proposed transit plan; 4) the collaboration between the different constituents for the region, noting when people work together it benefits all; 5) the reasons behind a bus and train following a similar route; 6) any new apps or tools that will be put in place to help with the transition of the new transit plan; 7) staff providing the Board a chart that shows where lines were increased, decreased and removed, noting its helpfulness to see the bigger picture; 8) speaking cautiously when it comes to using 2016 Measure B funds; 9) key metrics and performance indicators; 10) the need to cut service if the ridership data supports it; and 11) the benefits of starting the framework for budget planning sooner than later.

Mr. Unites reported that VTA will collaborate with the Veterans Affairs (VA) in San Jose to come up with solutions to serve those veterans. Mr. Unites further reported that it is a possibility that the deficit could affect the overall service.

Mr. Burger commented that the new trip planner on VTA’s website will be a great tool to navigate through the new system.

Nuria I. Fernandez, General Manager and CEO, made the following comments: 1) noted staff will stay away from using the term pilot in the Almaden Valley area, but rather emphasize that VTA is committed to finding alternatives and/or solutions to those individuals needing transit in that area; 2) noted the importance of not confusing the public to presuming that there will be a transit bus provided in the area; 3) clarified that the budget

Administration and Finance Committee Page 4 of 7 April 20, 2017

will need to be approved prior to the Next Network Plan; and 4) discussed the goals surrounding the Key Performance Indicators (KPI) and benchmarks.

M/S/C (Liccardo/Bruins) to approve submitting a recommendation to the Board of Directors to adopt the Final VTA Transit Service Plan

RESULT: APPROVED [UNANIMOUS] MOVER: Sam Liccardo, Member SECONDER: Jeannie Bruins, Member AYES: Bruins, Hendricks, Liccardo NOES: None ABSENT: Carr

Member Liccardo noted his recusal on Agenda Item #14., Capitol Expressway Light Rail Project - Contract for Final Design Services.

14. Capitol Expressway Light Rail Project - Contract for Final Design Services

Dennis Ratcliffe, Interim Director of Engineering & Transportation Infrastructure Development, provided an overview of the staff report.

Discussion ensued about the following: 1) 522 Express Bus route; and 2) any incompatibilities and/or challenges with the Reid-Hillview airport on Capitol Expressway.

On order of Chairperson Hendricks and there being no objection, the Committee forwarded the following item to the VTA Board of Directors without a recommendation: Authorize the General Manager to execute a contract with BKF in the amount up to $14,100,000 to perform final design services for the Capitol Expressway Light Rail Project.

15. (Deferred)

Authorize the General Manager to execute a master task order contract with TransCore to provide Electronic Toll System Integration services for the Silicon Valley Express Lanes (SVEL) Program on US 101and SR 85 for a five-year term with an option to extend the term to provide SI services throughout the duration of the SVEL Program, in an amount not to exceed $20 million

16. Low/No Electric Bus Procurement Information

Art Douwes, Operations Manager for Engineering, and Inez Evans, Chief Operating Officer, provided an overview of the staff report.

Discussion ensued about the following: 1) rationale for omitting the price of the contract at this time; 2) if pricing will be provided to the Board prior to voting; 3) VTA’s commitment on purchasing the buses; 4) how many miles on average the transit buses travel; and 5) charging stations for the new electric buses.

Administration and Finance Committee Page 5 of 7 April 20, 2017

Mr. Douwes and Ms. Evans reported that the pricing was kept off the report so that other vendors would not have the ability to adjust their pricing during negotiations. They further reported that VTA would have the option to purchase more vehicles if funds become available or VTA likes them, but for now VTA’s commitment is to only purchase five. Mr. Douwes noted that VTA staff is looking at the most efficient charging stations for the buses.

On order of Chairperson Hendricks and there being no objection, the Committee received the report on the Low/No Electric Bus Procurement the Monthly Investment Report for January 2017

OTHER ITEMS

17. Items of Concern and Referral to Administration

There were no items of Concern and Referral to Administration.

18. Committee Work Plan

On order of Chairperson and there being no objection, the Committee reviewed the Committee Work Plan.

19. Committee Staff Report

There was no Committee Staff Report.

20. Chairperson's Report

There was no Chairperson’s Report.

21. Determine Consent Agenda for the May 4, 2017, Board of Directors Meeting

CONSENT:

Agenda Item #5. Authorize the General Manager to execute a contract in an amount not to exceed $1,200,150 with Biggs Cardosa and Associates, Inc. (BCA) to perform final design and engineering services for the Montague Expressway Pedestrian Overcrossing project.

Agenda Item #6. Authorize the General Manager to execute a contract with CDM Smith for an amount not-to-exceed $1,600,000 for a task order contract for the preparation of the State Route 85 Transit Guideway Study.

Agenda Item #7. Authorize the General Manager to amend the contract with TransCore in an amount of $1,552,229 for the SR 237 Express Lanes Phase 2 Electronic Toll Systems (ETS) Integrator services and to use the new total contract amount of $7,452,556 to calculate the General Manager’s amendment authority under the Administrative Code Section 9.2(h). This amendment will cover the addition to the original scope of the development and implementation of a Violation Enforcement System (VES) and a fiber optic communications system to the Electronic Toll System for the SR 237 Express Lanes corridor.

Administration and Finance Committee Page 6 of 7 April 20, 2017

Agenda Item #8. Authorize the General Manager to execute contract amendments with HMH Engineers to perform Project Approval/Environmental Documentation (PA/ED) services in an amount not to exceed a total of $1,825,000 for the I-280/Wolfe Road Interchange Project, and further authorize the General Manager to negotiate and execute the necessary agreements with State, local and regulatory agencies to complete PA/ED phase tasks.

Agenda Item #9. Adopt a resolution authorizing the General Manager or the Chief Operating Officer or the Director of Planning and Program Development or the General Counsel to file and execute grant applications and agreements with the State of California for California Transit Security Grant Program - California Transit Assistance Fund (CTSGP-CTAF) funds.

Agenda Item #12. Review the Legislative Update Matrix.

REGULAR:

Agenda Item #13. Recommend that the VTA Board of Directors adopt the Final VTA Transit Service Plan.

Agenda Item #14. Authorize the General Manager to execute a contract with BKF in the amount up to $14,100,000 to perform final design services for the Capitol Expressway Light Rail Project.

DEFERRED

Agenda Item #15. Authorize the General Manager to execute a master task order contract with TransCore to provide Electronic Toll System Integration services for the Silicon Valley Express Lanes (SVEL) Program on US 101and SR 85 for a five-year term with an option to extend the term to provide SI services throughout the duration of the SVEL Program, in an amount not to exceed $20 million.

22. Announcements

There were no Announcements.

23. Adjournment

On order of Chairperson Hendricks and there being no objection, the meeting was adjourned at 1:14 pm.

Respectfully submitted,

Theadora Abraham, Board Assistant VTA Office of the Board Secretary

Administration and Finance Committee Page 7 of 7 April 20, 2017

Date: May 11, 2017 Current Meeting: May 18, 2017 Board Meeting: June 1, 2017

BOARD MEMORANDUM

TO: Santa Clara Valley Transportation Authority Administration & Finance Committee

THROUGH: General Manager, Nuria I. Fernandez

FROM: Chief Financial Officer, Raj Srinath

SUBJECT: Fiscal Year 2017 Statement of Revenues and Expenses for the Period Ending March 31, 2017

Policy-Related Action: No Government Code Section 84308 Applies: No

ACTION ITEM

RECOMMENDATION:

Recommend that the VTA Board of Directors review and accept the Fiscal Year 2017 Statement of Revenues and Expenses for the period ending March 31, 2017.

DISCUSSION:

This memorandum provides a brief discussion of significant items and trends on the attached Statement of Revenues and Expenses through March 31, 2017. The schedule has been designed to follow the same company-wide line item rollup as included in the adopted budget. The columns have been designed to provide easy comparison of actual to budget activities for the current fiscal year including year-to-date dollar and percentage variances from budget. The current staff projections of Revenues and Expenses for Fiscal Year 2017 are also included.

The following are highlights of the current Statement of Revenues and Expenses:

Revenues

Fiscal year-to-date Total Revenues (line 15) are above budget estimates by $7.7M, primarily due to a favorable variance in net Transfer for Capital (lines 13 & 14). This positive variance was partially offset by unfavorable variances in Fares-Transit (line 1), 1976 Half-Cent Sales Tax (line 3), Measure A Sales Tax Operating Assistance (line 5) and State Transit Assistance (STA) (line 6).

Fares (line 1) shows a negative variance of $5.8M due primarily to lower ridership than budgeted.

1976 Half-Cent Sales Tax (line 3) and Measure A Sales Tax Operating Assistance (line 5) reflect a collective variance of $5.3M under budget estimates. While sales tax receipts to date for FY17 were higher than the previous year, the rate of growth was lower than budgeted.

STA (line 6) reflects an unfavorable variance of $4.3M due to the continued reduction in the price of diesel fuel. STA revenues are derived entirely from the sales tax on diesel fuel.

Other Income (line 12) reflects a positive variance of $2.3M due primarily to a one-time receipt of revenues from termination of a Light Rail Vehicle lease/leaseback arrangement.

The net of Transfer for Capital (line 13) and Debt Reduction Fund Contribution (line 14) shows a positive variance of $16.4M reflecting the April 21, 2017 Board action to suspend the transfer for FY17.

Expenses

Overall, Fiscal year-to-date Total Expenses (line 44) were $4.6M under budget driven primarily by favorable variances in Labor (line 16) and Fuel (line 21) offset somewhat by unfavorable variances in Materials & Supplies (line 17) and Reimbursements (line 32).

Labor (line 16) shows a favorable variance of $7.9M due primarily to savings related to health insurance premiums, decreased Retiree Medical Trust contributions, and a continued effort to manage vacancies.

Materials & Supplies (line 17) reflects an unfavorable variance of $5.0M due primarily to increased preventive maintenance and the Light Rail Vehicle fleet mid-life overhaul.

Fuel (line 21) reflects a favorable variance of $3.2M due to lower per gallon costs than budgeted. Average diesel price per gallon paid year-to-date through March was $1.90 versus a budgeted price of $2.85.

Reimbursements (line 32) has a negative variance of $4.1M due primarily to timing of reimbursable project activities and the assignment of staff to non-reimbursable activities.

Projections

Current staff projections for the fiscal year reflect a negative Operating Balance (line 45) of $2.0M. This improvement over the budgeted negative Operating Balance is due primarily to the suspension of the transfer to capital approved by the Board on April 21, 2017 and projected savings in labor, security, fuel and paratransit. These positive impacts are offset somewhat by lower fares, sales tax based revenues, STA, and reimbursements as well as higher than budgeted materials & supplies.

Page 2 of 3 5

SUMMARY:

Through the first nine months of the year, revenues were higher than budget projections by $7.7M while expenses were $4.6M below budget estimates, for an overall positive variance of revenues over expenses (line 45) of $12.3M. Current staff projections for the fiscal year reflect a negative Operating Balance of $2.0M. This negative Operating Balance would be funded from reserves.

FISCAL IMPACT:

There is no fiscal impact as a result of this action.

Prepared by: Carol Lawson, Fiscal Resources Manager Memo No. 5815

ATTACHMENTS:  FY17 3Q Rev Exp Attachment (PDF)

Page 3 of 3 5.a SANTA CLARA VALLEY TRANSPORTATION AUTHORITY STATEMENT OF REVENUES AND EXPENSES Fiscal Year 2017 through March 31, 2017 (Dollars in Thousands)

Fiscal Year- Fiscal Year- Year-to- FY 2017 % FY 2017 Line Category to-Date to-Date Date Current Variance Projection2 Actual Budget Variance Budget1 1 Fares-Transit 25,350 31,187 (5,837) -18.7% 41,599 33,564 2 Fares-Paratransit3 739 0 739 N/A 0 1,234 3 1976 Half-Cent Sales Tax 157,144 161,613 (4,468) -2.8% 216,835 210,296 4 TDA 76,993 75,958 1,035 1.4% 101,912 99,605 5 Measure A Sales Tax-Oper Asst 29,026 29,829 (803) -2.7% 40,021 38,814 6 STA 6,741 11,072 (4,331) -39.1% 14,765 8,965 7 Federal Operating Grants 3,154 2,778 377 13.6% 3,704 4,092 8 State Operating Grants 1,927 1,065 863 81.0% 1,420 2,186 9 Investment Earnings 2,205 1,069 1,137 106.4% 1,425 3,250 10 Advertising Income 1,979 1,693 286 16.9% 2,258 2,522 11 Measure A Repayment Obligation 3,635 3,586 49 1.4% 15,247 15,247 12 Other Income 4,173 1,917 2,256 117.7% 2,556 4,539 13 Transfer for Capital 0 (25,200) 25,200 -100.0% (33,600) 0 14 Debt Reduction Fund Contribution 0 8,770 (8,770) -100.0% 11,693 0 15 Total Revenues 313,068 305,336 7,732 2.5% 419,836 424,313 16 Labor Costs 234,021 241,881 7,860 3.2% 323,067 310,932 17 Materials & Supplies 19,484 14,530 (4,953) -34.1% 19,374 27,913 18 Security 9,789 10,713 924 8.6% 15,119 12,619 19 Professional & Special Services 4,838 5,273 436 8.3% 7,187 6,975 20 Other Services 5,545 5,637 92 1.6% 7,584 7,591 21 Fuel 6,115 9,303 3,187 34.3% 12,432 8,354 22 Traction Power 2,979 2,847 (132) -4.6% 3,898 4,198 23 Tires 1,617 1,699 82 4.8% 2,266 2,266 24 Utilities 2,494 2,171 (323) -14.9% 2,895 3,195 25 Insurance 4,466 4,313 (153) -3.5% 5,752 6,012 26 Data Processing 3,548 3,503 (46) -1.3% 4,746 4,746 27 Office Expense 258 319 61 19.1% 425 425 28 Communications 1,270 1,204 (65) -5.4% 1,606 1,606 29 Employee Related Expense 415 772 357 46.2% 1,031 1,023 30 Leases & Rents 492 593 102 17.1% 791 791 31 Miscellaneous 619 610 (9) -1.5% 799 714 32 Reimbursements (24,935) (29,077) (4,142) 14.2% (38,769) (31,536) 33 Subtotal Operating Expense 273,014 276,291 3,277 1.2% 370,201 367,822 34 Paratransit 17,852 18,973 1,122 5.9% 26,184 20,627 35 Caltrain 6,293 6,291 (1) 0.0% 8,390 8,390 36 Altamont Corridor Express 3,676 3,992 316 7.9% 5,323 4,888 37 Highway 17 Express 246 288 42 14.6% 384 333 38 Monterey-San Jose Express Service 26 26 (0) 0.0% 35 35 39 Contribution to Other Agencies 2,370 2,381 11 0.5% 2,624 2,624 40 Debt Service 5,287 5,133 (154) -3.0% 21,641 21,641 41 Subtotal Other Expense 35,749 37,085 1,336 3.6% 64,581 58,539

42 Operating & Other Expenses 308,764 313,376 4,613 1.5% 434,782 426,361 43 Contingency 0 0 0 N/A 665 0 44 Total Expenses 308,764 313,376 4,613 1.5% 435,447 426,361 45 Operating Balance 4,304 (8,040) 12,344 (15,611) (2,047)

Note: Totals and percentages may not be precise due to independent rounding.

1 Reflects Adopted Budget approved by the Board on June 4, 2015, $4.0M augmentation approved on October 1, 2015, $2.5M augmentation approved on October 6, 2016, and $5.3M augmentation approved on November 3, 2016 2 Reflects current staff projection as of March 28, 2017 and April 21, 2017 Board action to suspend transfer to capital 3 Prior to November 2016, Paratransit fares were netted from expenditures and reflected on line 34 Page 1 of 2

5.a

SANTA CLARA VALLEY TRANSPORTATION AUTHORITY SOURCES AND USES OF FUNDS SUMMARY Fiscal Year 2017 through March 31, 2017 (Dollar in Thousands)

FY17 FY17 FY17 Line Description Adopted Current Projected Budget1 Budget2 Actual3 Operating Balance 1 Total Operating Revenues 419,836 419,836 424,313 2 Total Operating Expenses (423,647) (435,447) (426,361) 3 Operating Balance (3,811) (15,611) (2,047)

Operating Balance Transfers 4 Operating Balance (3,811) (15,611) (2,047) 5 Transfer From/(To) Sales Tax Stabilization Fund 0 0 2,047 6 Transfer From/(To) Operating Reserve 3,811 15,611 0 7 Transfer to Debt Reduction Fund for Future Capital 0 0 0

Operating Reserve 8 Beginning Operating Reserve 63,547 64,147 64,147 9 Transfer From/(To) Operating Balance (3,811) (15,611) 0 10 Ending Operating Reserves 59,736 48,536 64,147

11 Operating Reserve %4 12.6% 10.2% 13.5%

Note: Totals may not be precise due to independent rounding.

1 Adopted Budget approved by the Board on June 4, 2015 2 Reflects $4.0M, $2.5M, and $5.3M augmentations approved by the Board on October 1, 2015, October 6, 2016, and November 3, 2016 respectively 3 Staff Projection as of March 28, 2017 4 Line 10 divided by FY18 Proposed Operating Budget

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Date: May 12, 2017 Current Meeting: May 18, 2017 Board Meeting: June 1, 2017

BOARD MEMORANDUM

TO: Santa Clara Valley Transportation Authority Administration & Finance Committee

THROUGH: General Manager, Nuria I. Fernandez

FROM: Chief Financial Officer, Raj Srinath

SUBJECT: Casualty Property Operations Insurance Program for July 1, 2017 to July 1, 2018

Policy-Related Action: No Government Code Section 84308 Applies: No

ACTION ITEM

RECOMMENDATION:

Recommend that the VTA Board of Directors authorize the General Manager to purchase Property and Casualty insurance coverage for General and Auto Liability, Public Officials & Employment Practices Liability, Cyber Liability, Environmental Impairment & Pollution Liability, Crime, Blanket Railroad Protective Liability, and Property Insurance renewing the annual Operations Insurance Program for Fiscal Year 2018 for an amount not to exceed $3,500,000.

BACKGROUND:

VTA’s Property and Casualty insurance coverage is a one year program and renews annually with the beginning of the Fiscal Year. For July 1, 2017, VTA’s insurance broker, Willis, and our Enterprise Risk Manager have structured VTA’s insurance program and requested competing premium quotes from various carriers in the insurance market. Willis has approached carriers with adequate financial reserves, an excellent or better A.M. Best financial rating, and with strong public transportation insurance underwriting experience. Since final insurance quotes are generally not available until two weeks prior to policy inception date, Staff recommends the Board authorize in advance the purchase and placement of the Operations Insurance Program with an effective date of July 1, 2017.

DISCUSSION:

As detailed above, premium quotes are not yet available for VTA’s July 1, 2017 renewal. This authority request for $3,500,000 represents VTA’s insurance broker’s program premium cost

estimate based on their knowledge of the current property casualty insurance market for transit related risks. For property, an assessment of the appraised value of VTA’s real property includes the addition of our two new BART Garages valued at $80,000,000, the acquisition of forty-four (44) new buses, and an assessment of VTA’s bus and rail spare parts inventory. VTA has experienced some significant liability loss exposure this fiscal year arising out of several rail and bus incidents. For excess liability, the pricing of the overall premium may be impacted by these recent incidents.

VTA’s net expense for last year’s Operating Insurance Program totaled $3,206,073 in premium. The deposit premium for our Blanket Railroad Protective Liability Insurance Program and surplus lines taxes for direct insurance placements are included in the premium total.

For the July 1, 2017 to July 1, 2018 insurance term, VTA directed the broker to obtain premium indications for the same program structure as purchased last year as well as an optional program structure that increases property deductibles. The recommended program includes General and Auto Liability, Public Officials & Employment Practices Liability, Cyber Liability, Environmental Impairment/Pollution Liability, Crime, Property Insurance and a Blanket Railroad Protective Liability Insurance Program. The estimated total program cost will not exceed $3,500,000.

The results of the insurance marketing and final premium pricing will be reported to the Administration & Finance Committee at the September 2017 meeting.

ALTERNATIVES:

The Board can reject this approach and direct staff to solicit different levels of insurance coverage and limits still within VTA’s appetite to absorb risk. This option may reduce the up- front costs of insurance premiums retaining the Operations Insurance Program within Fiscal Year 2018 budget.

FISCAL IMPACT:

This action will authorize up to $3,500,000 for placement of the FY18 Operations Insurance Program. Appropriation for this expenditure is included in the Proposed FY18 VTA Transit Fund Operating Budget.

Prepared by: Judith L. Tancula Memo No. 6111

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Date: May 12, 2017 Current Meeting: May 18, 2017 Board Meeting: June 1, 2017

BOARD MEMORANDUM

TO: Santa Clara Valley Transportation Authority Administration & Finance Committee

THROUGH: General Manager, Nuria I. Fernandez

FROM: Chief Financial Officer, Raj Srinath

SUBJECT: Workers' Compensation Third Party Claims Administrator Contract Award - S16353

Policy-Related Action: No Government Code Section 84308 Applies: Yes

ACTION ITEM

RECOMMENDATION:

Recommend that the VTA Board of Directors authorize the General Manager to execute a fixed fee contract with Tristar Risk Management for Workers' Compensation Third Party Claims Administrator (TPA) for a five year term, from July 1, 2017 through June 30, 2022. The total five year contract cost for claims services will not exceed $5,260,100.

BACKGROUND:

VTA's Workers' Compensation (WC) Program is self-insured and utilizes the services of a TPA for WC Claims Administration Services. The TPA administers Workers’ Compensation benefits for employee industrial injury claims as required by the California Labor Code, including investigation, adjustment, and resolution of litigated and non-litigated claims.

The current contract was awarded by the Board on April 5, 2012 for a five year period and expires on June 30, 2017. The fixed fee for the expiring contract was $5,179,990.

The successor to this contract will assume responsibility for approximately 350 pending WC claims and will handle approximately 240 new claims per year.

DISCUSSION:

A Request for Proposal (RFP) for TPA Workers’ Compensation Claims Services was issued on January 17, 2017 and notices were sent directly to fifteen (15) firms. Advertisements soliciting proposals also were placed in the San Jose Post Record and listed on VTA's

Procurement Website.

A pre-proposal conference was held on January 31, 2017. Representatives from ten (10) firms attended the conference. The review board composing of the Enterprise Risk Manager, WC Claims Analyst, Risk Analyst, and Sr. Assistant Counsel received and evaluated proposals from the following companies.

PROPOSER 5 YEAR FIXED FEE Tristar Risk Management $5,260,100 (Final Negotiated (Incumbent) Fee) JT2 $3,855,000

The overall effectiveness of a TPA’s claims administration is measured by the ability to administer Workers’ Compensation claims in compliance with the California Labor Code, ensuring the highest level of medical care to injured employees, while containing the overall cost of claims. The proactive management of claims with strategic mitigation and cost containment methodologies are critical in administering Workers’ Compensation policies and procedures that comply with both VTA and state regulations.

Both proposers were evaluated based on their technical experience, the quality and proposed scope of services, and the overall composition of their claims examining staff. The TPA’s Risk Management Information System was also evaluated for robustness, versatility, and east of “on demand” report production. Systems that can produce reports, analyze loss trends, ensure timeliness and accuracy of payments with sound financial controls to support banking arrangements were give strong consideration.

The review board conducted interviews of both proposers on March 9, 2017. The performances and services currently provided by the incumbent, Tristar, far exceed the staffing and level of service that can be offered by JT2.

JT2’s written proposal did not meet VTA's expectations. Specifically, JT2 proposed a reduced staffing model, and did not provide VTA with a dedicated team. The staffing model did not provide personnel and resources for managing VTA’s Transitional Alternative and Modified Work Program and the dedication to a collaborative partnership with the Managed Care provider was not demonstrated during oral questions. Ultimately, the outcome of an increased case load per claims examiner would result short term in less administration dedicated to each claim and long term to an overall increase in average claims costs. Their outsourced Risk Management Information System is not report savvy, user friendly nor robust enough to meet VTA’s requirements for customized reports. During the oral interview, JT2 advised their staffing would be customized to meet VTA’s needs; however post interview, they failed to respond back to VTA with solutions to our concerns.

In contrast, the incumbent, Tristar, met VTA's expectations. Tristar has a proven track record of reducing VTA’s overall WC claims frequency and costs, has presented the right staffing model to support VTA, and has offered to provide value added services. These value added services include elevating the partnership with VTA’s Managed Care Services provider and leading the

Page 2 of 3 7

management of VTA’s Transitional Alternative and Modified Work Program. Tristar’s Valley Oaks Risk Management Information System is very robust, user friendly and report savvy. The system provides readily available ad hoc reports as well as customized reports upon request.

While Tristar’s annual fee for services compared to that of JT2 may be higher, staff was able to negotiate down their five year proposal fee to $5,260,100 from $5,355,731. These negotiations resulted in a minimal increase of 1.54 percent over the expiring contract. Additionally, the benefits of sound management will produce claim cost savings that substantiate the higher administration fee proposed. Therefore, the review board recommends the incumbent, Tristar Risk Management, be awarded the contract.

Tristar Risk Management was establish in 1987 and is a privately held corporation with annual revenue of $90 million and employs nearly 1,000 employees nationwide. They are headquartered in Long Beach, California with 30 offices across the country, eight of them in California. VTA will be serviced by the Concord Office. Their client base includes both public entity and private entity companies. They deliver services to other transit agencies; i.e., San Diego Metropolitan Transit System, and have a wealth of experience. Tristar’s work plan demonstrates a clear understanding of the project requirements and the proposed cost is competitive given the extensive resources to be provided to VTA.

ALTERNATIVES:

An alternative would be to reject the recommended proposer and direct staff to conduct a new RFP process. This would require an extension of the existing Tristar contract, the expense of an additional RFP process, and would likely yield the same results.

FISCAL IMPACT:

This action will authorize $5,260,100 for Workers' Compensation Third Party Administrator (TPA) claims services for a five year term. Appropriation for contract expenditures through June 30, 2019 is included in the FY18 and FY19 Proposed VTA Transit Fund Operating Budget. Appropriation for the remainder of the contract will be included in subsequent Biennial Budgets. SMALL BUSINESS ENTERPRISE (SBE) PARTICIPATION:

Based on the specialized scope of work and limited subcontracting opportunities, an SBE goal was not established for this contract. However, the contractor is encouraged to make reasonable efforts to utilize small business enterprises for procuring ancillary services or products associated with the performance of this contract.

Prepared by: Judith L. Harteau Memo No. 6112

ATTACHMENTS:  Attachment A- Sec 84308 for Gov't Action in MT TriStar (PDF)

Page 3 of 3 7.a

Attachment A

Workers' Compensation Third Party Claims Administrator Contractor List

Firm Name Role Location TriStar Risk Management Brandon Wheeler Director, Client Services Concord, CA

Date: May 10, 2017 Current Meeting: May 18, 2017 Board Meeting: June 1, 2017

BOARD MEMORANDUM

TO: Santa Clara Valley Transportation Authority Administration & Finance Committee

THROUGH: General Manager, Nuria I. Fernandez

FROM: Chief Financial Officer, Raj Srinath

SUBJECT: Contract for Workers’ Compensation Managed Care Services

Policy-Related Action: No Government Code Section 84308 Applies: Yes

ACTION ITEM

RECOMMENDATION:

Recommend that the VTA Board of Directors authorize the General Manager to execute a contract with EK Health for Workers' Compensation Managed Care Services for a five-year term, from July 1, 2017 through June 30, 2022 for a total cost not to exceed $1,400,000.

BACKGROUND:

VTA's Workers' Compensation (WC) Program is self-insured and utilizes the services of a Third Party Administrator (TPA) for WC Claims Administration Services. The WC Managed Care Service aspect of the program is a separate subcontract.

Managed Care Services include Medical Bill Re-pricing, Utilization Review (UR) and Case Management Services. The function of Medical Bill Re-pricing entails the review of medical bills utilizing state fee schedules and discounted Preferred Provider Networks for pricing reductions (re-pricing) of bills and services. Medical Bill Re-pricing Services are evaluated primarily on cost reduction capabilities in addition to service fee competitiveness and other general operational efficiencies. Medical Case Management oversees the delivery of ongoing medical treatment through the use of field and telephonic nurse case managers. This service assures appropriate treatment for injured employees and controls medical costs incurred by VTA. Medical Case Management Services are evaluated primarily on the quality and expertise of the medical professionals offered by the vendor, the vendor’s timely service reporting, and the overall case handling efficiency and costs for services.

On April 5, 2012, the Board of Directors awarded a five-year contract to Genex Services for

Managed Care Services for the period from July 1, 2012 through June 30, 2017 for a total authorized contract value not to exceed $1,105,000.

DISCUSSION:

A Request for Proposal (RFP) for Managed Care Services was issued on January 17, 2017 and notices were sent directly to fifteen (15) firms. Advertisements soliciting proposals were also placed in the San Jose Post Record and listed on VTA's Procurement Website. While the RFP allowed responding firms to propose separately for Medical Bill Re-pricing or Medical Case Management Services, the two respondents proposed to contract for both services under a single contract.

A pre-proposal conference was held on January 31, 2017. Representatives from ten (10) firms attended the conference. Subsequently, VTA received two proposals.

PROPOSER FIVE YEAR ESTIMATED FEE Genex Services (Incumbent) $1,325,000 EK Health $1,400,000

The overall outcome of Managed Care Services is measured by the effectiveness of the contractor to provide the highest level of care to VTA’s injured employees during their injury recovery and return to work while containing the overall costs of medical treatment.

The review board was composed of VTA’s Enterprise Risk Manager, Claims Program Manager, Workers’ Compensation Claims Analyst, Risk Analyst, and Sr. Assistant Counsel. The selection criteria included qualification of the firm; staffing and project organization; work plan and project understanding; local firm preference; and cost. Both firms were interviewed by the review board in March, 2017.

Genex, the incumbent, provided a strong proposal, but came unprepared for their oral presentation and response to questions. Additionally, value added services were not introduced and the presentation team did not demonstrate their commitment to VTA.

In contrast, EK Health’s proposal provides comprehensive core services including Medical Case Management, Utilization Review, Medical Bill Re-pricing, Medical Provider Network Services, in addition to access to a wide scope of ad-hoc services. They demonstrated the ability to provide extensive integrated services and robust data collection capabilities which should result in superior data analytics and proactive management of program trends and developments. Their work plan demonstrated the ability to provide a customized program that meets VTA’s goals through a proactive approach and strong collaboration with VTA and its Workers’ Compensation Claims TPA.

Based on their strong responses during the interview and their overall proposal, the review board has selected EK Health as the recommended firm for contract award.

EK Health is a privately-owned California corporation with almost twenty years of experience in managed care services within the California Workers’ Compensation system. They are

Page 2 of 3 8

headquartered in San Jose, California. DataCare, a sister company, provides information systems data and support to their executive partner, EK Health. Current clients include public entities with unionized workforces and similar operational structures to VTA.

ALTERNATIVES:

An alternative is to reject the recommended proposer and direct staff to conduct a new RFP process. This would require an extension of the existing contract with Genex, the expense of an additional RFP process, and would likely yield the same results.

FISCAL IMPACT:

This action will authorize up to $1,400,000 for Workers' Compensation Managed Care Services over a five year period. Appropriation for contract expenditures through June 30, 2019 is included in the FY18 and FY19 Proposed VTA Transit Fund Operating Budget. Appropriation for the remainder of the contract will be included in subsequent Biennial Budgets.

SMALL BUSINESS ENTERPRISE (SBE) PARTICIPATION:

No specific goal has been establish for Contract S16353. The contractor has agreed to make every reasonable effort to utilize SBEs in procurement of ancillary services and products associated with the performance of this contract.

Prepared by: Judith L. Harteau Memo No. 6113

ATTACHMENTS:  Attachment A- Sec 84308 for Gov't Action in MT EK HEALTH (PDF)

Page 3 of 3 8.a

Attachment A

Workers’ Compensation Managed Care Services Contractor List

Firm Name Role Location EK Health Services, Inc. Kerry Wilson, CPCU Director, Client Services Concord, CA Executive Vice President

Date: May 12, 2017 Current Meeting: May 18, 2017 Board Meeting: June 1, 2017

BOARD MEMORANDUM

TO: Santa Clara Valley Transportation Authority Administration & Finance Committee

THROUGH: General Manager, Nuria I. Fernandez

FROM: Chief Financial Officer, Raj Srinath

SUBJECT: Authorization of Developer Solicitation for Evelyn Joint Development Site

Policy-Related Action: No Government Code Section 84308 Applies: No

ACTION ITEM

RECOMMENDATION:

Recommend that the VTA Board of Directors authorize the General Manager to issue a developer solicitation for the Evelyn Joint Development site for the purpose of identifying a developer to recommend to the Board of Directors for an Exclusive Negotiations Agreement. The solicitation will seek developers to design, finance, build, and operate a 100% affordable housing development pursuant to a long-term ground lease from VTA. BACKGROUND: The Evelyn Joint Development site is located at Evelyn Street and Pioneer Street in Mountain View. It served as a VTA Park and Ride lot prior to the closure of the Evelyn Light Rail Station for the construction of the Light Rail double tracking project. The Board of Directors previously identified this location as a site for Joint Development, as it is approximately one-half mile south of the Mountain View Transit Center. Attachment A to this memorandum contains a fact sheet on the property. The Mountain View General Plan designates higher density office for the site at a Floor Area Ratio of 1.0, which could allow development on the site of an office building of up to 80,000 square feet. However, the site is currently zoned for industrial use, which means that the property would need to be rezoned before office development could occur. The City of Mountain View is receiving an extraordinary level of development applications and requests for rezoning and General Plan Amendments that exceeds the capacity of its staff and consultants. The City conducts periodic “Gatekeeper” processes that allow developers and property owners to propose applications for development entitlements. VTA submitted a

Gatekeeper application for the Evelyn site in the December 2016 round. However, the application was not selected by the City Council (2 of the 13 submitted applications were approved). Without entitlements in place, and given the challenge of being allowed to submit an application, there is significant entitlement risk for a project. Properties that are sold or leased with significant entitlement risk typically receive 50% or less of the value they would have with entitlements in place. Staff has been leasing the property for construction lay down and other uses compatible with the existing industrial zoning. Rental agreements signed to date have a total value of $175,000. DISCUSSION: Through recent discussions, City of Mountain View staff has indicated that the City would be prepared to consider an application for rezoning the Evelyn site to allow dense multifamily residential development if the project has 100% affordable units. City staff has provided a letter to VTA to this effect, and has also indicated that there is potential for financial assistance from available City affordable housing funds. Based on this letter, VTA’s Joint Development staff expects to be able to attract significant interest from affordable housing developers. The VTA developer solicitation would identify that VTA expects to enter into a ground lease, with payments based on the fair market value of the site for market-rate multifamily rental housing. The residential and commercial markets in Mountain View are very strong at present, and both uses support high land valuations. Experienced affordable housing developers are used to competing with market-rate developers to obtain sites, and such a requirement is not expected to diminish affordable housing developer interest in the site. A 100% affordable housing development is consistent with VTA’s Joint Development affordable housing policy, as a combination of mixed-income and 100% affordable housing developments will need to occur to achieve the overall 35% affordable housing goal at portfolio buildout. ALTERNATIVES: The Board could direct staff to wait until such time as the City is willing to consider an application for rezoning and/or a General Plan Amendment for a different use than a 100% affordable multifamily development. FISCAL IMPACT:

The eventual negotiation of a long-term ground lease for a 100% affordable development, based on fair market value of the land for market-rate multifamily development, would be expected to generate substantial new annual revenues for the Joint Development Fund.

Prepared by: Ron Golem Memo No. 6110

ATTACHMENTS:  Attachment A - Evelyn Fact Sheet (PDF)

Page 2 of 2 EVELYN STATION 9.a Pioneer Way @ Evelyn Avenue, Mountain View, CA 94041

Acreage 2.32

Current Use Park & Ride Lot

APN 160-65-008

Title VTA

Current Zoning General Industrial

General Plan High-Intesity Office

Net Dev Area (-VTA Parking) 2.32

Council District N/A

School District Mountain View Los Altos Union 10

Date: May 9, 2017 Current Meeting: May 18, 2017 Board Meeting: June 1, 2017

BOARD MEMORANDUM

TO: Santa Clara Valley Transportation Authority Administration & Finance Committee

THROUGH: General Manager, Nuria I. Fernandez

FROM: Interim Director - Engr & Transp Infra Dev, Dennis Ratcliffe

SUBJECT: Construction Contract Award Contract C650 (C16349) SVBX Sitework

Policy-Related Action: No Government Code Section 84308 Applies: No

ACTION ITEM

RECOMMENDATION:

Recommend that the VTA Board of Directors authorize the General Manager to execute a contract with Granite Rock Company, the lowest responsive and responsible bidder, in the amount of $3,743,468 for the construction of SVBX Sitework plus a contingency amount of $1,310,214 (35% of the contract value) to address unforeseen and unforeseeable conditions due to the nature of the work.

BACKGROUND:

The SVBX project has started construction in 2012, and majority of work has already been scoped in the previously-awarded SVBX construction contracts. The SVBX Sitework Contract (C650) covers remaining items of work throughout the SVBX project limits requiring completion prior to revenue service operations. The major scopes of work items for the C650 Contract include the following: 1) demolition of two vacant commercial buildings on VTA property adjacent to the Milpitas BART Station Campus, in order to protect public safety; 2) removal of the soil stockpile at the south end of the Berryessa BART Station Campus; and 3) reconstruction of a culvert headwall at Toroges Creek in the city of Fremont to provide the ten-foot-wide access road required by Chevron/ MCI on the east of SVBX corridor. Other minor elements of scope in the C650 Contract are: (1) the installation of a pedestrian fence along the Montague Expressway median to deter unsafe crossing by pedestrians; (2) reconstruction of median and sidewalk at South Milpitas Boulevard to meet the storm water

treatment requirements and the City of Milpitas’ landscaping needs; (3) construction of community walls at the Milpitas BART Station Campus required by the settlement for an eminent domain acquisition at the adjacent Crossing property; and (4) general construction activities that need to be addressed prior to revenue service operations.

This action requires the VTA Board to Adopt a Resolution of Findings that the work under this contract be performed under a project labor agreement. This resolution is recommended as a separate item on the Board agenda.

DISCUSSION:

The C650 SVBX Sitework Contract was advertised on March 29, 2017. Two (2) bids were submitted on April 26, 2017 with the following results: Company Name Bid Amount Granite Rock Company $3,743,468 Gordon N. Ball Inc. $4,257,599 Engineer’s Estimate $2,423,347

The bids received ranged from +54% to +76% of the Engineer’s Estimate. VTA staff has completed the bid review process and has determined that Granite Rock Company is the lowest responsible and responsive bidder.

The limited number of bid submissions is indicative of the currently saturated construction market in Silicon Valley and portrays the limited availability of local contractors. Due to the broad nature of the C650 Contract, contractors with diverse capabilities are commanding a higher price. Given these factors, staff determines that Granite Rock Company’s bid, which is $1,320,121 above the Engineer’s Estimate, is fair and reasonable. In addition, given the tight timeframe for completion of this work as well as contracting trends indicating that the local construction market will not cool off soon, a rebid of the C650 Contract is unlikely to yield a materially lower bid price. Therefore, staff recommends award of this contract to Granite Rock Company to perform needed work prior to the commencement of revenue services.

The C650 Contract is intended to be the final construction contract to be advertised. As such, it is anticipated that the C650 contract will be the most effective contracting means to address unforeseen work items may be required for public safety or other reasons. Therefore, staff is recommending that a change order contingency in the amount of 35% of the bid value be included in this Board action. This will provide up to $1,310,214 for potential contract changes to address unforeseen work items. This contingency amount is $748,694 higher than the 15% contingency that would otherwise be approved under VTA Administrative Code and therefore requires Board approval.

Construction is anticipated to begin in July 2017, with completion by March 2018.

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ALTERNATIVES: The Board could choose to reject all bids and request staff to re-advertise the contract. This action would delay the completion of the SVBX Sitework contract, which will negatively impact the overall SVBX project delivery schedule, with construction activities occurring after the commencement of revenue operations and is unlikely to result in a materially lower contract price. FISCAL IMPACT:

This action will authorize $3,743,468 plus $1,310,214 for contingencies, if needed, for construction of SVBX Sitework. Appropriation for this expenditure is included in the FY17 Adopted 2000 Measure A Transit Improvement Program Fund Capital Budget. This contract is funded by a combination of Federal (FTA) and 2000 Measure A funds.

DISADVANTAGED BUSINESS ENTERPRISE (DBE) PARTICIPATION:

Based on identifiable subcontracting opportunities, a Disadvantaged Business Enterprise (DBE) goal of 6.85% was established for this project. VTA’s review of the bid documents determined that Granite Rock Company attained a DBE participation of 17.5%, and, based on the review of the supporting documentation, Granite Rock Company has met the DBE requirements of the bid documents.

Prepared by: Hassan Basma, Transportation Engineering Manager Memo No. 5836

Page 3 of 3 11

Date: May 11, 2017 Current Meeting: May 18, 2017 Board Meeting: June 1, 2017

BOARD MEMORANDUM

TO: Santa Clara Valley Transportation Authority Administration & Finance Committee

THROUGH: General Manager, Nuria I. Fernandez

FROM: Interim Director - Engr & Transp Infra Dev, Dennis Ratcliffe

SUBJECT: Project Labor Agreement for C650 SVBX Sitework

Policy-Related Action: No Government Code Section 84308 Applies: No Resolution

ACTION ITEM

RECOMMENDATION:

Recommend that the VTA Board of Directors adopt a resolution of findings that use of a Project Labor Agreement (PLA) in the C650 SVBX Sitework Contract will ensure the availability and stability of labor resources throughout the duration of construction.

BACKGROUND:

The SVBX project started construction in 2012, and majority of work has already been scoped in the previously-awarded SVBX construction contracts. The SVBX Sitework Contract (C650) covers items of work throughout the SVBX project limits requiring completion prior to revenue service operations.

The major scopes of work items for the C650 Contract include the following: 1) demolition of two vacant commercial buildings on VTA property adjacent to the Milpitas BART Station Campus, in order to protect public safety; 2) removal of the soil stockpile at the south end of the Berryessa BART Station Campus; and 3) reconstruction of a culvert headwall at Toroges Creek in the city of Fremont to provide the ten-foot-wide access road required by Chevron/ MCI on the east of SVBX corridor.

Other minor elements of scope in the C650 Contract are: (1) the installation of a pedestrian fence along the Montague Expressway median to deter unsafe crossing by pedestrians; (2)

reconstruction of median and sidewalk at South Milpitas Boulevard to meet the storm water treatment requirements and the City of Milpitas’ landscaping needs; (3) construction of community walls at the Milpitas BART Station Campus required by the settlement for an eminent domain acquisition at the adjacent Crossing property; and (4) general construction activities that need to be addressed prior to revenue service operations.

On September 1, 2011, the VTA Board of Directors adopted a resolution of findings that determined that the use of a Project Labor Agreement for the Line, Track, Stations and Systems Design-Build contract (VTA Contract C700 LTSS) of the SVBX Project would ensure the availability and stability of labor resources throughout the duration of the project. The Board also authorized the General Manager to enter into a PLA with the Santa Clara & San Benito Counties Building & Construction Trades Council (Trades Council).

On December 8, 2011, the VTA Board of Directors awarded the VTA Contract C700-LTSS that incorporates the PLA.

Per VTA Board action on June 6, 2013, the PLA was amended to incorporate the C730 SVBX Parking Structures Contract, which was awarded on August 7, 2014.

On November 6, 2014, the Board approved a further amendment of the PLA, allowing its application to the C740/741/742 Campus and Roadways Contracts.

On May 7, 2015, the VTA Board of Directors approved a further amendment of the PLA, allowing its application to the Montague Reconstruction Project (VTA Contract C640 Montague Expressway & South Milpitas Boulevard Improvements).

On August 6, 2015, the VTA Board authorized the General Manager to enter into amendments of the existing PLA with the Santa Clara & San Benito Counties Building & Construction Trade Council to enable additional trade unions and labor organizations to become signatories to the PLA as needed to provide effective jurisdictional coordination between represented trades.

DISCUSSION:

VTA is required to demonstrate objectively that the PLA furthers a legitimate government interest, in this case, to promote efficiency of construction operations for the C650 SVBX Sitework Contract. The PLA is an effective tool for the SVBX Project because it establishes a common set of work rules (working hours, holidays, etc), prohibits strikes, lockouts and work stoppages, and provides for efficient resolution of grievances. The C650 construction will occur simultaneously and in close coordination with the SVBX contracts. Without entering a PLA, any labor issues affecting the C650 Contract would be unorderly, take longer to resolve, and negatively affect the progress of SVBX Project construction.

The VTA Board’s proposed resolution of findings (Attachment A) acknowledges the benefits to be derived from including the C650 Contract in the PLA. The PLA reduces the risk of significant economic loss to VTA, disruption to the community, and delays to the completion of the SVBX

Page 2 of 3 11

Project.

ALTERNATIVES:

The Board could choose not to adopt the required findings to allow amendment of the PLA to incorporate the C650 SVBX Sitework Contract. As a result, VTA would proceed to advertise, award and construct the C650 Contract, without the protections that would otherwise be secured through the use of a PLA.

FISCAL IMPACT:

There are no direct fiscal impacts to approving this recommendation. However, absence of a PLA for the C650 Contract poses significant risks to the timely and cost-effective completion of the SVBX Sitework contract.

Prepared by: Hassan Basma, Transp. Engineering Manager Memo No. 6103

Page 3 of 3 11.a RESOLUTION NO. ______

RESOLUTION OF THE SANTA CLARA VALLEY TRANSPORTATION AUTHORITY BOARD OF DIRECTORS FINDING THAT USE OF A PROJECT LABOR AGREEMENT FOR THE C650 SVBX SITEWORK WILL RESULT IN ECONOMICAL AND TIMELY PROJECT COMPLETION

WHEREAS, Public Contract Code Section 2500 authorizes public entities to enter into project labor agreements for construction projects; and

WHEREAS, the United States Supreme Court held in Building & Construction Trades Council of the Metropolitan District v. Associated Builders Contractors of Massachusetts/ Rhode Island, Inc., 507 U.S. 218 (1993) that state and local governments, when acting as market participants, are permitted under the National Labor Relations Act (NLRA) (29 U.S.C. § 151 et seq.) to enforce bid specifications requiring contractors to abide by project labor agreements with labor organizations for construction projects owned by those state and local governments.

WHEREAS, the Court also commented in the aforementioned case that when a state or local governmental agency utilizes bid specifications containing a project labor agreement for a construction project owned by the agency, the agency “does not regulate the workings of market forces” in violation of NLRA pre-emption of such regulation, but is acting as a market participant and “exemplifies” the workings of market forces, and therefore is not prevented from doing so by the NLRA; and

WHEREAS, Federal policy encourages public agencies receiving federal monies to consider requiring the use of project labor agreements in connection with large-scale construction projects in order to promote economy and efficiency in their procurement process;

WHEREAS, Executive Order 13502 provides that the use of a project labor agreement may allow a public entity to avoid (i) challenges to efficient and timely procurement; (ii) difficulty in predicting labor costs when bidding on contracts and ensuring a steady supply of labor on contracts being performed; (iii) challenges due to the fact that construction projects typically involve multiple employers at a single location; (iv) labor disputes, and (v) lack of coordination among various employers or uncertainty about the terms and conditions of employment of various groups of workers, thereby promoting the efficient and expeditious completion of Federal construction contracts; and

WHEREAS, the California Supreme Court held in Associated Builders and Contractors v. San Francisco Airports Commission, 21 Cal.4th 352 (1999), that a public agency may use a project labor agreement, concluding that the Commission’s decision to require a project labor agreement was “in furtherance of legitimate government interests [including] those of preventing costly delays and assuring contractors access to skilled craft workers;”

WHEREAS, on December 8, 2011, the VTA Board of Directors awarded the Line, Track, Stations and Systems Design-Build Contract (VTA Contract C700-LTSS) of the Silicon Valley Berryessa Extension Project that incorporated a Project Labor Agreement (PLA)

Page 1 of 4

11.a RESOLUTION NO. ______

with Santa Clara & San Benito Counties Building & Construction Trades Council and signatory unions;

WHEREAS, on August 7, 2014, the VTA Board of Directors awarded the C730-Parking Structures Contract for the construction of Parking Structures at the Milpitas and Berryessa Stations of the Silicon Valley Berryessa Extension (SVBX) that incorporated a Project Labor Agreement (PLA) with Santa Clara & San Benito Counties Building & Construction Trades Council and signatory unions;

WHEREAS, On November 6, 2014, the VTA Board approved a further amendment of the PLA, allowing its application to the C740/741/742 Campus and Roadways Contracts.

WHEREAS, On May 7, 2015, the VTA Board approved a further amendment of the PLA, allowing its application to the C640 Montague Expressway & South Milpitas Boulevard Improvements Contract.

WHEREAS, On August 6, 2015, the VTA Board authorized the General Manager to enter into amendments of the existing PLA with the Santa Clara & San Benito Counties Building & Construction Trade Council to enable additional trade unions and labor organizations to become signatories to the PLA as needed to provide effective jurisdictional coordination between represented trades.

NOW, THEREFORE BE IT RESOLVED, by the Board of Directors of the Santa Clara Valley Transportation Authority, that based on the foregoing, the Board of Directors of the Santa Clara Valley Transportation Authority hereby:

A. Finds and declares that:

1. The C650 SVBX Sitework Contract will require significant availability and stability of labor resources throughout its duration;

2. An occurrence of labor disruption during the construction of the C700-LTSS Contract, the C730-Parking Structures Contract, the C740-741-742 Campus and Roadways Contracts, and C640 Montague Reconstruction Contract would result in economic loss to VTA, disruption to the operations of local municipalities and to the community, and delay to the completion of the SVBX project;

3. Because the C650 SVBX Sitework Contract will be constructed simultaneously and in close coordination with the C700-LTSS Contract, the C730-Parking Structures Contract, the C740-741-742 Campus and Roadways Contracts, and C640 Montague Reconstruction Contract, labor disruption to the C650 Contract would likely result in disruption to the ongoing SVBX contracts;

4. The cost of delay in completing the C640 Montague Expressway & South Milpitas Boulevard Improvements Contract is estimated be in excess of $7,500

Page 2 of 4 11.a RESOLUTION NO. ______

per day;

5. The cost of delay in completing the C740-741-742 Campus and Roadways Contracts is estimated to be in between $4,000 and $10,000 per day;

6. The cost of delay in completing the C730-Parking Structures Contract is estimated to be in excess of $10,000 per day;

7. The cost of delay in completing the C700-LTSS Contract is estimated to be in excess of $75,000 per day;

8. The cost of delay in completing certain milestones defined in the C700-LTSS Contract are estimated to be in excess of $50,000 per day;

9. Time is of the essence for the C700-LTSS Contract, with a stated value of $100,000 per day for early completion, up to a maximum of $15,000,000;

10. The estimated costs of delays and the value of early completion to VTA are evidence of VTA’s compelling interest in having labor disputes in connection with the SVBX contracts resolved without the disruptions of work stoppages, strikes, lock-outs, slowdowns or similar disruptions, and that entering into a project labor agreement for the C650 SVBX Sitework will make it possible to legally enforce guarantees that construction under the C700-LTSS Contract, the C730-Parking Structures Contract, the C740/741/742-Campus and Roadways Contracts, and C640 Montague Expressway & South Milpitas Boulevard Improvements Contract will be carried out in an orderly and timely manner, without work stoppages, strikes, lock-outs, slowdowns or similar disruptions, and provide for peaceful, orderly, and mutually binding procedures for resolving disputes;

11. Use of a project labor agreement in connection with the C700-LTSS Contract, the C730-Parking Structures, the C740/741/742-Campus and Roadways Contracts, the C640 Montague Expressway & South Milpitas Boulevard Improvements Contract, and the C650 SVBX Sitework Contract will result in reduced project costs and expedited delivery of both the SVBX Project and the Montague Reconstruction Project by: (a) establishing the specific terms and conditions that govern the employment of labor; (b) ensuring labor stability by coordinating wages, work rules, mechanisms for resolving grievances, and other terms of employment; (c) ensuring labor availability by enabling the prime contractor and all subcontractors wishing to compete for contracts and subcontracts to do so without regard to whether they are otherwise parties to collective bargaining agreements; and (d) preventing work stoppages by establishing guarantees against strikes, lockouts, and similar job disruptions.

B. Approves the use of a project labor agreement for the C650 SVBX Sitework Contract.

Page 3 of 4 11.a RESOLUTION NO. ______

AYES: NOES: ABSENT: ______Jeannie Bruins, Chairperson ______Elaine Baltao, Board Secretary

APPROVED AS TO FORM:

______Robert Fabela, General Counsel

Page 4 of 4 12

Date: May 9, 2017 Current Meeting: May 18, 2017 Board Meeting: June 1, 2017

BOARD MEMORANDUM

TO: Santa Clara Valley Transportation Authority Administration & Finance Committee

THROUGH: General Manager, Nuria I. Fernandez

FROM: Interim Director - Engr & Transp Infra Dev, Dennis Ratcliffe

SUBJECT: De Anza College Stelling Road Bus Stop Improvement Contract

Policy-Related Action: No Government Code Section 84308 Applies: No

ACTION ITEM

RECOMMENDATION:

Recommend that the VTA Board of Directors authorize the General Manager to execute a contract with the lowest responsive and responsible bidder, for the construction of the De Anza College Stelling Road Bus Stop Improvement. Note: Due to the timing of the bid opening on May 16, 2017, the bid review is not yet completed. Following bid review, a revised memorandum will be provided to the Board.

BACKGROUND:

Based on current ridership demand in the Stevens Creek Corridor, VTA is proposing to implement a Rapid 523 service as a near term improvement and early deliverable of the Stevens Creek BRT Project. The Rapid 523 service would replace the Limited 323 and will follow the example of VTA’s Rapid 522 that was implemented in 2005. The Rapid 523 project is focused on providing an enhanced service that will serve the Berryessa BART Station when it opens and in coordination with the BART Transit Integration Plan to create a service plan between Berryessa BART and De Anza College. The Stelling Road bus stop near De Anza College is at the end of the Rapid 523 line near Stevens Creek Boulevard. The Stelling Road bus stop improvement will serve an immediate solution to speed up travel time and accommodate increased transportation needs in the De Anza College area that will effectively result from the implementation of the Rapid 23 line.

The contract includes bus stop pad and passenger boarding improvements at Stelling Road near Stevens Creek Boulevard (see Exhibit A). The work includes clearing and grubbing; demolition of

retaining wall; excavation of PCC pavement, curb gutter and sidewalk, asphalt concrete; construction of concrete bus pad, sidewalk, retaining wall, and asphalt concrete; installation of new bus shelters, lighting, and fencing; and signing and striping improvements.

DISCUSSION:

The De Anza College Stelling Road Bus Stop Improvement construction contract was advertised on April 27, 2017 with bids to be submitted by May 16, 2017.

VTA staff will recommend award of this contract after VTA has performed a bid analysis and has determined the bid to be fair and reasonable.

Construction is scheduled to begin in July 2017 with a contract duration of 150 calendar days.

ALTERNATIVES: The Board could choose to reject all bids and readvertise the contract. This would result in a delay in awarding this contract and would jeopardize the completion of the project that is planned for completion prior to the planned increased bus service resulting from new BART service to Berryessa as early as the end of 2017. FISCAL IMPACT:

This action will authorize funds for construction of improvements for the De Anza College Stelling Road Bus Improvement. Appropriation for this expenditure is included in the FY17 Adopted 2000 Measure A Transit Improvement Program Fund Capital Budget. This contract is funded with 2000 Measure A funds.

SMALL BUSINESS ENTERPRISE (SBE) PARTICIPATION: Based on identifiable subcontracting opportunities, a Small Business Enterprise (SBE) goal of 8.47% was established for this contract.

Prepared by: Ed Evangelista, Sr. Transportation Engineer Memo No. 5771

ATTACHMENTS:  5771_Exhibit A-Stelling Road Bus Stop Location (PDF)

Page 2 of 2 12.a 13

Date: May 10, 2017 Current Meeting: May 18, 2017 Board Meeting: June 1, 2017

BOARD MEMORANDUM

TO: Santa Clara Valley Transportation Authority Administration & Finance Committee

THROUGH: General Manager, Nuria I. Fernandez

FROM: Interim Director - Engr & Transp Infra Dev, Dennis Ratcliffe

SUBJECT: Amend the C836 Alum Rock Avenue Roadway, Busway and Station Improvements Contract for Alum Rock - Santa Clara Bus Rapid Transit Project with Ghilotti Construction Company

Policy-Related Action: No Government Code Section 84308 Applies: Yes

ACTION ITEM

RECOMMENDATION:

Recommend that the VTA Board of Directors authorize the General Manager to amend the C836 Alum Rock Avenue Roadway, Busway and Station Improvements Contract with Ghilotti Construction Company by an amount of $2,663,038 for additional electrical and communications work for the Alum Rock - Santa Clara Bus Rapid Transit Project, increasing the total contract amount to $23,218,312.

BACKGROUND:

The Alum Rock Santa Clara Bus Rapid Transit (BRT) Project extends 7.2 miles in the City of San Jose from the western terminus at the SAP Center on Santa Clara Street to the Alum Rock Transit Center on Capitol Avenue and continues to the Eastridge Transit Center.

In September 2015, VTA entered into a Closeout Agreement with Goodfellow Top Grade Construction (GTGC), the contractor for the main civil and stations improvements contract.

Steiny and Company, Inc. (Steiny), a former GTGC subcontractor, was assigned to VTA after the closeout agreement to continue performing critical electrical, communications, and traffic signal work along the corridor.

DISCUSSION:

On May 5, 2016, the VTA Board of Directors authorized execution of a contract with Ghilotti Construction Company for the Alum Rock Santa Clara BRT Project, Alum Rock Avenue Roadway, Busway and Station Improvements Contract (C836).

In September 2016, having learned that Steiny was facing financial difficulties and was no longer able to complete the traffic signal work, the VTA Board of Directors authorized an additional $4,420,253 for the Ghilotti contract to support the transfer of the traffic signal scope from the Steiny contract. Ghilotti has completed the transferred traffic signal work, and the BRT busway is now open for revenue service.

Recently, Steiny filed for bankruptcy protection and is no longer able to perform their remaining contract work which includes communications, street lighting and station electrical. To complete the project, the remaining Steiny scope is being transferred to the Ghilotti contract. This final transfer of scope from Steiny is estimated not-to-exceed $2,663,038. This is not additional project cost but merely transfer of scope from the Steiny contract to the Ghilotti contract.

Contract Summary: Vendor Name: Ghilotti Original Contract $16,135,021 Construction Amount: Company Contract Number: C836 Prior Modifications: $4,420,253 (C15061) Original Contract Term(s): 247 Current Contract $20,555,274 Days Amount: Revised Contract Term: 401 Amount Requested: $2,663,038 Days Solicitation Type: Bid Total Amount $23,218,312 Including Request: Procurement Type: Competitive % of Request to 13.0% Current Amount: UDBE Goal: N/A % Modifications 43.9% including request to original contract: SBE Goal: 9.62% Funding Source(s): Measure A

The recommended action will support the transfer of the remaining Steiny scope to the C836 contract and will extend the original contract duration by approximately 154 days.

Page 2 of 3 13

ALTERNATIVES:

The Board could choose to re-advertise the remaining scope for communications and electrical work from the Steiny contract. This would result in a significant delay to the completion of the project, additional costs and an extended period of construction impacts on a community that has already endured significant project impacts.

FISCAL IMPACT:

This action will authorize $2,663,038 for electrical and communications work for the Alum Rock-Santa Clara Bus Rapid Transit Project. Appropriation for this expenditure is included in the FY17 Adopted 2000 Measure A Transit Improvement Program Capital Budget. This contract is funded with state grants and 2000 Measure A funds.

SMALL BUSINESS ENTERPRISE (SBE) PARTICIPATION:

Based on identifiable subcontracting opportunities, a Small Business Enterprise (SBE) goal of 7.52 % was established for this contract. Ghilotti Construction has committed to an SBE participation of 9.62% for this contract.

Prepared by: Mohamed Basma, Program Delivery Manager Memo No. 6107

ATTACHMENTS:  6107 - Exhibit A for C836 Amendment (PDF)  6107 - Exhibit B C836 List of Contractors (PDF)

Page 3 of 3 Alum Rock/Santa Clara BRT Corridor 13.a EXHIBIT A

ARENA 13.b

Exhibit B C836 List of Contractors

Firm Name Name Role Location

Ghilotti Construction Brian Ongaro Vice President Santa Rosa, CA Company, Inc. Ghilotti Construction Gene Petrini Project Manager Santa Rosa, CA Company, Inc. Sub-Contractors

ABSL Construction Daryl Vorme Manager Hayward, CA

Bond Blacktop Mark Pierce Estimator Union City, CA

Camblin Steel Jeff Jope Estimator Rocklin, CA

Ghrisp Company Aaron Patton Estimator Fremont, CA

Farwest Safety Stephanie Chaney Estimator Lodi, CA

F3 & Associates Lisa Perry Project Administrator Benicia, CA

Hunt Masonry John Hunt President Concord, CA

Lonestar Landscape Robert Samaniego Manager San Martin, CA

MCK Services John Moffet Project Manager Concord, CA

Midstate Barrier, Inc. Vice President of Stockton, CA Dan Nicholas Estimate Mountain F. Enterprises Jim Finney Project Manager Lotus, CA

Pacific Northwest Oil Eric Hicks Estimator Stockton, CA

R. L. Ziegenbein Co. Ronald Ziegenbein President Alamo, CA

Rosendin Electric Rick Guzman Manager, Business San Jose, CA Development 14

Date: May 9, 2017 Current Meeting: May 18, 2017 Board Meeting: June 1, 2017

BOARD MEMORANDUM

TO: Santa Clara Valley Transportation Authority Administration & Finance Committee

THROUGH: General Manager, Nuria I. Fernandez

FROM: Chief Operating Officer, Inez Evans

SUBJECT: Radio Equipment and Services for SVRCS and CAD/AVL

Policy-Related Action: No Government Code Section 84308 Applies: Yes

ACTION ITEM

RECOMMENDATION:

Recommend that the VTA Board of Directors authorize the General Manager to execute a purchase order, in an amount not to exceed $5,965,276 for console radios, subscriber radios and related equipment and professional services from Motorola Solutions, Inc., under the pricing terms and conditions obtained through the cooperative agreement dated September 25, 2012, between the County of Santa Clara and Motorola Solutions, Inc., for goods and related services for use on the Silicon Valley Regional Communications System (SVRCS) and the CAD/AVL (Computer Aided Dispatching-Automatic Vehicle Location) system. BACKGROUND:

In 2003, VTA completed an upgrade of its radio and fleet management system that included the installation of a CAD/AVL system to provide an effective communication system, enhance transit service and safety, improve daily operational performance and incident management, and increase visibility of day-to-day operational data. The CAD/AVL system is the primary system used by the Operations Control Center (OCC) dispatchers to manage both revenue service and support vehicles. VTA’s CAD/AVL system features managed voice communication, on-time performance monitoring, next-stop announcements, automatic passenger counting, and real-time passenger information. Operators rely on the system as the primary form of communication with OCC. It is an important component in keeping a safe and secure transit service.

VTA currently owns, operates, and maintains a land mobile radio (LMR) system to support its transit and public safety communication needs. This radio system, which uses a nine-channel ultra-high frequency (UHF) T-Band mobile radio system, is a critical and necessary component

of the CAD/AVL system.

DISCUSSION:

CAD/AVL Replacement

In June 2014, the Board of Directors approved replacing the CAD/AVL system through a competitive negotiation process. The CAD/AVL replacement project is a multi-million dollar procurement requiring specialized expertise to design and install. VTA conducted an extensive procurement process in order to select the best value CAD/AVL product for VTA. On August 4, 2016, the VTA Board of Directors approved contract award for the CAD/AVL replacement to Clever Devices Ltd.

CAD/AVL and Radio System Integration The CAD/AVL system is comprised of in-vehicle equipment, fixed-end computer equipment, and a fixed-site radio subsystem. The CAD portion of the system provides a function that controls the vehicle voice communications and the AVL functions provide vehicle locations. The radio system supports VTA operations by providing voice communications. VTA’s current T-Band radio system is an older, analog system running on the UHF 450 MHz frequency. The system is increasingly failing to meet VTA’s operational and technological requirements, including a lack of interoperability with regional public safety agencies. The entire radio system is in need of replacement. The fixed-site repeaters, mobile radios, and attendant software are no longer manufactured or supported by the manufacturer, Motorola. In addition, the Federal Communications Commission (FCC) plans to reclaim the radio 450 MHz frequencies. The cost to replace VTA’s entire radio system is estimated to be over $20 million. The current system has no ability to communicate with other public safety agencies or other local radio systems. The current lack of interoperability is a major communications gap during large scale events, as well as a problem in responding to emergencies or natural disasters. The VTA Board of Directors directed staff to pursue a more efficient, interoperability, and cost- effective alternative. Silicon Valley Regional Interoperability Authority (SVRIA) The Silicon Valley Regional Interoperability Authority (SVRIA) was formed in 2010 under the Joint Exercise of Powers Act, California Government Code Section 6500 et seq. to provide interoperable communications solutions to its members. SVRIA’s purpose and mission is to enhance and coordinate regional public safety data and radio communications systems. To accomplish this mission, SVRIA members participate in a multi-year project to fund and construct the regional radio communications system called the Silicon Valley Regional Communications System (SVRCS). The SVRCS will allow public safety officers across the region to communicate with each other. Operational funding for the SVRIA is provided through assessments to its members. The SVRIA

Page 2 of 4 14

operating and systems maintenance budget covers the cost of staff, maintenance of installed systems and reserves for equipment replacement. On November 3, 2016, the VTA Board of Directors approved VTA’s entry as a member of the SVRIA, including two seats to the SVRIA Board of Directors and two seats to the SVRIA Working Committee. As a member of the SVRIA, VTA is committed to pay a portion of the costs to construct the SVRCS. SVRIA and Motorola Master Agreement In 2012, Santa Clara County released an RFP for the design, construction, and deployment of the Silicon Valley Regional Communications System. The contract was awarded to Motorola Solutions, Inc. Santa Clara County negotiated (on behalf of SVRIA members) a Master Agreement with Motorola to allow all “Eligible Purchasers” to purchase equipment and services for use on the SVRCS. Because VTA is an Eligible Purchaser under the Master Agreement, VTA will benefit from the significant cost savings that were negotiated in the agreement. Compliance with Competitive Bid Requirements  Federal Procurement Requirements: This procurement is locally funded, therefore federal bid requirements do not apply.  State and Local Procurement Requirements: This procurement qualifies as a sole source, non-competitive procurement. o VTA’s current radio system is built with Motorola equipment, however many of the critical components (such as the fixed-site repeaters, mobile radios, and attendant software) are no longer manufactured or supported by Motorola. o Because VTA is a member of SVRIA, the SVRCS will replace our current legacy infrastructure. The question is where to source the radio equipment used for that infrastructure. The radio equipment is comprised of two categories: consoles and mobiles.  As a member of SVRIA, VTA must buy the consoles through the use of the Motorola Master Agreement.

 VTA may procure the mobiles from another vendor. However, if VTA chose to purchase the mobiles from another vendor instead of through the Motorola Master Agreement then it would be a more expensive option because VTA will not benefit from the highly- negotiated prices that SVRIA obtained in the Master Agreement with Motorola.  Additional advantages with staying with Motorola: o Maintenance: SVRIA established Service Providers who help maintain the SVRCS. VTA has a fully-trained staff who can function as a Service Provider; o Clever Devices is a Motorola Solutions-certified Advanced Development Partner (ADP) and has the necessary licenses to interface with Motorola equipment; o VTA users’ familiarity with Motorola radios; and o Application setup in VTA is Motorola-based.

Thus, to avoid the cost-prohibitive option of purchasing the mobile equipment from a more expensive source and to ensure seamless continuity where possible, a sole source procurement method is necessary and in the best interest of the agency.

Page 3 of 4 14

Purchase Order Summary: Radio Equipment/Services Amount Dispatch Console System $1,182,156 Subscriber Equipment (mobile and portable radios) $4,690,674 Implementation Services and Warranty $1,142,725 Taxes $424,995 Incentives (per SVRIA-Motorola contract) ($1,475,274) Total $5,965,276

ALTERNATIVES:

The Board could reject the recommendation and direct staff to perform a competitive sealed-bid procurement process. However, this is impractical because it will impose additional up-front costs, significantly delay the implementation of the CAD/AVL system, and increase the risk associated with additional testing with no guarantee of substantial cost savings if another supplier is selected.

FISCAL IMPACT:

This action will authorize up to $5,965,276 for console radios, subscriber radios and related equipment and professional services from Motorola Solutions, Inc. Appropriation for these expenditures is included in the FY17 VTA Transit Fund Capital Budget.

Prepared by: Joonie Tolosa Memo No. 6087

ATTACHMENTS:  AttachmentA_government_section_code_84308_Radio_for_CAD-AVL (PDF)

Page 4 of 4 14.a

Attachment A

Radio Equipment and Services for SVRCS and CAD/AVL List of Consultant(s)/Contractor(s)

Firm Name Contact Location Motorola Solutions, Inc. Jeff Van Dell 1001 Bayhill Drive, 2nd Floor Sr. Account Executive San Bruno, CA 94066

Date: May 11, 2017 Current Meeting: May 18, 2017 Board Meeting: June 1, 2017

BOARD MEMORANDUM

TO: Santa Clara Valley Transportation Authority Administration & Finance Committee

THROUGH: General Manager, Nuria I. Fernandez

FROM: Chief Operating Officer, Inez Evans

SUBJECT: Procurement of Three Position Exterior Bike Racks

Policy-Related Action: No Government Code Section 84308 Applies: Yes

ACTION ITEM

RECOMMENDATION:

Recommend that the VTA Board of Directors authorize the General Manager to execute a contract with Sportworks Northwest Inc. of Woodinville, Washington for the purchase of 391 three-position exterior bike racks in the amount of $654,924.67.

BACKGROUND:

Under the ongoing Transportation Fund for Clean Air (TFCA) program, the Bay Area Air Quality Management District awards 40% of TFCA funds to the County in which they are collected for allocation by a designated Program Manager. VTA is the Program Manager for Santa Clara County. In June 2015 the VTA Board approved the allocation of up to $820,000.00 in TFCA funds for adding three-position bike racks to the front of all VTA buses.

VTA buses have been equipped with two-position bike racks for many years and they are heavily used by the bike riding public. In 2015 the State Legislature changed the vehicle code length regulation with the specific intent of allowing three-position bike racks on transit buses. The three position racks create a 50% increase in bike capacity, and so will improve the consistent availability of first/last mile connections for bike riders.

VTA has created on-board storage racks for two bikes on the new articulated buses, increasing the overall bike capacity to four (2 inside, existing 2 outside). For that reason, the articulated buses were dropped from this project.

DISCUSSION:

VTA staff worked with Bicycle & Pedestrian Advisory Committee members to evaluate available three position bike racks for safety and ease of use. The APEX 3 model bike rack from Sportworks was determined to be best bike rack for ease of use and overall safety. One safety issue with the design was identified. VTA staff brought it to the attention of Sportworks, who adjusted their design and rectified the issue.

VTA did trials of the APEX 3, which revealed another safety issue that Operators identified. Depending on the type of bike loaded in the rack, blind spots in the headlight visibility could be created at night. Testing confirmed the issue, and VTA staff embarked on efforts to find appropriate fog/driving style lights to supplement the headlights and eliminate the blind spots when the racks are installed. Bike rack procurement was placed on hold until thorough testing could be conducted and staff was confident that a viable solution was available.

ALTERNATIVES:

VTA can continue to run our fleet with two position bike racks, and the entire $820,000 in funding committed to this project would be returned to the TFCA account for use on other clean air efforts in Santa Clara County.

FISCAL IMPACT:

This action with authorize $654,924.67 for the purchase of three-position exterior bike racks for buses. Appropriation for this expenditure is included in the FY17 Adopted VTA Transit Fund Capital Budget. This contract is funded by a Transportation Fund for Clean Air (TFCA) grant and VTA local funds.

Prepared by: Jim Wilhelm Memo No. 6109

ATTACHMENTS:  apex 3 (PDF)  3_pos rack 1 (JPG)  3_pos rack 2 (JPG)  Attachment A Government Section Code 84308_3 Pos Bike Racks (PDF)

Page 2 of 2 15.a 15.b 15.c 15.d

Attachment A

Procurement of Three Position Exterior Bikeracks List of Consultant(s)

Firm Name Name Role Location Sportworks Jana Anderson Sales and Support Woodinville, WA

Date: May 10, 2017 Current Meeting: May 18, 2017 Board Meeting: June 1, 2017

BOARD MEMORANDUM

TO: Santa Clara Valley Transportation Authority Administration & Finance Committee

THROUGH: General Manager, Nuria I. Fernandez

FROM: Interim Director - Planning & Program Development, Carolyn M. Gonot

SUBJECT: Resolution to Commit Low Carbon Transit Operations Program (LCTOP) Funds to the Purchase of Zero Emission Electric Buses

Policy-Related Action: No Government Code Section 84308 Applies: No Resolution

ACTION ITEM

RECOMMENDATION:

Recommend that the VTA Board of Directors adopt a program resolution for VTA's 2017 Through 2019 Low Carbon Transit Operations Program (LCTOP) for the VTA Zero Emission Bus project.

BACKGROUND:

The California’s Global Warming Solutions Act of 2006 was enacted through Assembly Bill 32 (AB 32). AB32 establishes the California Air Resources Board (CARB) as the administering body for the programs and sets a series of policies and programs across all major industry sectors to return California’s greenhouse gas (GHG) emissions to 1990 levels by 2020.

One of the mechanisms identified to implement AB 32 was the creation of the Cap & Trade Program. The “cap” in Cap & Trade refers to setting limits on emissions from industries that exceed annual emissions of 25,000 metric tons of GHG. These limits were enacted on industrial (stationary emissions) sectors in 2013. In 2015, the transportation (mobile emissions) sector was added to the program. The “trade” refers to the creation of a free market for the sale of carbon allowances, encouraging companies to be innovative, in order to meet (or exceed) their allocated limit and avoid fines. Companies that emit less than their “cap” can sell the allowances to the companies that exceed their cap. The purchasing companies “trade” purchase of the allowances in lieu of paying the fines associated with the exceeding their cap. Assembly Bill 1532 (Perez,

2012) created the Greenhouse Gas Reduction Fund (GGRF) and directed that the proceeds from the auctions of GHG allowances (not to include fines and penalties) be deposited in the GGRF account and be available for appropriation by the legislature. The purchase of the allowances is accomplished through quarterly and reserve auctions. Senate Bill 862 (2012) uses Cap & Trade proceeds to create the Low Carbon Transportation and Operations Program (LCTOP). LCTOP is a formula program designed to fund transit projects that reduce GHG emissions, improve mobility, and enhance or expand public transit. Beginning in fiscal year 2015/16, five percent (5%) of the annual proceeds of the GGRF are to be continuously appropriated to the LCTOP. The LCTOP apportionments are divided into two funding designations consistent with the California Public Utilities Code Sections 99313 (population based apportionments) and 99314 (revenue based apportionments).

DISCUSSION:

VTA is an eligible recipient for both the population and revenue based LCTOP funding, however the Metropolitan Transportation Commission has folded the population based funding into their Transportation Capital Projects Program and the funding does not come to VTA directly. VTA’s available funds for the 2017 LCTOP program include $1,215,210 ($25,863 of which are funds not used by Altamont Commuter Express (ACE)) in Section 99314 revenue based funds. We are requesting that these funds be delayed and combined with the funding from the next two fiscal years. The 2017/18 and 2018/19 estimations of funds are $2,500,000 each year. Combining these funds over the three years will provide a more substantial fund base (estimated at $6,215,210) to combine with federal funding to purchase more electric buses. VTA is beginning to transition its diesel-electric hybrid transit bus fleet to low and no emissions vehicles. This delay of funds will also give operations more time to adapt our bus resources to the new fleet of arriving electric buses. Staff recommends programming these funds to purchase up to eight electric transit buses and related fueling infrastructure in FY 2019.

This planned project can be modified through the Corrective Action Plan process should the interests of VTA be better served by an earlier expenditure of these funds.

Staff’s recommended 2017 through 2019 LCTOP actions and the electric bus funding plan are summarized in the following table.

Line Item Description Cost/Funds Est. cost of 8 Electric Buses and supporting fueling infrastructure $9,215,210 2017 Revenue-Based LCTOP funds ($1,215,210) 2018 Est. Revenue-Based LCTOP funds1 ($2,500,000) 2019 Est. Revenue-Based LCTOP funds1 ($2,500,000) 2019 FTA Low/No Emission Vehicle Grant2 ($3,000,000) Subtotal Grant Funding $9,215,210 Balance $ 0 1These estimates are based on prior amounts and purposely high to avoid supplanting 2The estimate is based on prior experience with LoNo in 2016 (we received $2.9 million)

As shown in the plan, all of the funding is anticipated to come from State and Federal grants.

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Pursuant to the Caltrans Guidelines for Low Carbon Transit Operations Plan, a resolution and signed Certifications and Assurances are required from the VTA Board of Directors in order for Caltrans to accept VTA's LCTOP funding applications. VTA staff recommends that the Board adopt the attached resolution and sign the attached Certifications and Assurances.

ALTERNATIVES:

The VTA Board may choose to fund alternative projects. The VTA Board may choose not to accept LCTOP funds.

FISCAL IMPACT:

This action will enable VTA to collect approximately $6,215,210 in Low Carbon Transit Operations Program (LCTOP) grant funds.

Prepared by: Bruce Abanathie Memo No. 6117

Page 3 of 3 16.a

DRAFT Resolution No. ___TBD______

CALIFORNIA GREENHOUSE GAS REDUCTION FUND (GGRF) – TRANSIT, AFFORDABLE HOUSING, AND SUSTAINABLE COMMUNITIES PROGRAM: LOW CARBON TRANSIT OPERATIONS PROGRAM (LCTOP)

RESOLUTION AUTHORIZING THE COMMITMENT OF LCTOP FUNDS TO THE PURCHASE OF ZERO EMISSION BUSES

WHEREAS, the California Greenhouse Gas Reduction Fund (GGRF) and The Transit, Affordable Housing, and Sustainable Communities Program were created by Senate Bill 862 (SB 862, 2014), Greenhouse Gases: Emissions reductions, which authorizes the issuance of loans and grants to reduce Greenhouse Gases by promoting in- state development of infrastructure; and

WHEREAS SB 862 also created The Low Carbon Transit Operations Program (LCTOP) to provide operating and capital assistance to transit agencies to reduce greenhouse gas emissions, improve mobility, with a priority on servicing disadvantaged communities through new or expanded bus or rail service and expanded intermodal facilities and

WHEREAS, SB 862 named the California Department of Transportation (Caltrans) as the administrating agency and Caltrans has developed guidelines for administering and distributing LCTOP funds to eligible project sponsors, and

WHEREAS, the Santa Clara Valley Transportation Authority (VTA) is an eligible project sponsor/grantee for LCTOP funding through Caltrans, and

WHEREAS, VTA has entered into a pathway to a full zero emission bus fleet by 2040; and

WHEREAS, Caltrans requires VTA to complete and submit a Governing Body Resolution for the purposes of identifying the project(s) to be funded by the LCTOP funds.

NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Santa Clara Valley Transportation Authority that (1) the FY 2016/17 through 2018/19 LCTOP funds, in the (approximated) amount of $6,215,210, are directed to the purchase of zero emission buses.

PASSED AND ADOPTED by the Santa Clara Valley Transportation Authority Board of Directors on by the following vote:

16.a

AYES:

NOES:

ABSENT:

______Jeannie Bruins, Chairperson Board of Directors

I HEREBY CERTIFY AND ATTEST that the foregoing resolution was duly and regularly introduced, passed and adopted by the vote of the Board of Directors of the Santa Clara Valley Transportation Authority, California, at a meeting of said Board of Directors on the date indicated, as set forth above.

Date: ______

______Elaine Baltao, Board Secretary

APPROVED AS TO FORM:

______Robert Fabela, General Counsel

Date: May 10, 2017 Current Meeting: May 18, 2017 Board Meeting: June 1, 2017

BOARD MEMORANDUM

TO: Santa Clara Valley Transportation Authority Administration & Finance Committee

THROUGH: General Manager, Nuria I. Fernandez

FROM: Interim Director - Planning & Program Development, Carolyn M. Gonot

SUBJECT: Resolution to Support Certifications and Assurances for 2017 - 2019 Low Carbon Transit Operations Program (LCTOP)

Policy-Related Action: No Government Code Section 84308 Applies: No Resolution

ACTION ITEM

RECOMMENDATION:

Recommend that the VTA Board of Directors adopt a resolution authorizing the General Manager or Designee to file and execute grant applications, agreements, and certifications and assurances with the California Department of Transportation (Caltrans) for all current and future funds available through the Greenhouse Gas Reduction Fund (GGRF), Low Carbon Transit Operations Program (LCTOP).

BACKGROUND:

Assembly Bill 1532 (Perez, 2012) created the Greenhouse Gas Reduction Fund (GGRF) and directed that the proceeds from the auctions of GHG allowances (not to include fines and penalties) be deposited in the GGRF account and be available for appropriation by the legislature. The purchase of the allowances is accomplished through quarterly and reserve auctions.

Senate Bill 862 (2012) creates the Low Carbon Transit Operations Program (LCTOP) as a formula program (rather than a competitive program) and directs that, beginning in fiscal year 2015/16, five percent (5%) of the annual proceeds of the GGRF be continuously appropriated to the LCTOP. The LCTOP apportionments are divided into two funding designations consistent with the California Public Utilities Code Sections 99313 (population based apportionments) and 99314 (revenue based apportionments).

In 2014/15 and 2015/16, Santa Clara Valley transportation Authority Board of Directors approved Resolution numbers 2015.03.08 and 2016.03.05 respectively authorizing the actions recommended above for the 2016/17 through 2018/19 Fiscal Years of LCTOP funding. DISCUSSION:

VTA is an eligible recipient for both the population and revenue based funding streams of the LCTOP apportionments to reduce GHG emissions, improve mobility, and enhance or expand public transit service to increase mode share. Funding flows to public transit agencies according to the State Transit Assistance Program (STA) formula wherein the population portion flows to the Metropolitan Transportation Commission, which has blended those funds into their Transportation Capital Projects program and the funding no longer comes to VTA directly. LCTOP funds eligible projects that support:  New or expanded bus or rail services  Expanded intermodal transit facilities  Equipment acquisition, particularly zero emission vehicle purchases  Fueling, maintenance and other costs to operate those services or facilities

Fund Breakdown

FY 2016/17 FY 2017/18 FY 2018/19 TOTAL $1,215,210 $2,500,000 $2,500,000 $6,215,210 Pursuant to the Caltrans Guidelines for Low Carbon Transit Operations Plan, a resolution by the VTA Board of Directors is required in order for VTA to apply and be eligible to receive LCTOP funding. Shall the Board choose to pursue these funds, it must adopt a resolution authorizing the General Manager or Designee to file and execute grant applications, agreements, certifications and assurances with the California Department of Transportation (Caltrans) for all current and future funds available through the Greenhouse Gas Reduction Fund (GGRF), Low Carbon Transit Operations Program (LCTOP). VTA Staff recommends that the Board adopt the attached resolution.

ALTERNATIVES:

There is no practical alternative recommendation if the VTA wishes to claim these funds.

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FISCAL IMPACT:

This action will enable VTA to collect approximately $6,215,210 in Low Carbon Transit Operations Program (LCTOP) grant funds.

Prepared by: Bruce Abanathie Memo No. 6116

Page 3 of 3 17.a

Resolution No. _TBD______

CALIFORNIA GREENHOUSE GAS REDUCTION FUND (GGRF) – TRANSIT, AFFORDABLE HOUSING, AND SUSTAINABLE COMMUNITIES PROGRAM: LOW CARBON TRANSIT OPERATIONS PROGRAM (LCTOP)

RESOLUTION AUTHORIZING THE SUBMITTAL AND EXECUTION OF GRANT APPLICATIONS AND AGREEMENTS, CERTIFICATIONS AND ASSURANCES AND OTHER DOCUMENTS AS MAY BE NECESSARY FOR THE PURPOSE OF OBTAINING FINANCIAL ASSISTANCE PROVIDED BY THE CALIFORNIA DEPARTMENT OF TRANSPORTATION (CALTRANS)

WHEREAS, the Santa Clara Valley Transportation Authority (VTA) is an eligible project sponsor/grantee for LCTOP funding through Caltrans, and

WHEREAS, VTA recognizes that it is responsible for compliance with all statutes and regulations grant assurances, and state and federal laws, including, but not limited to, laws governing the use of GGRF funds, and

WHEREAS, Caltrans requires VTA to complete and submit a Governing Body Resolution for the purposes of identifying agent(s) authorized to act on behalf of VTA to execute actions necessary to obtain LCTOP funds from Caltrans and ensure continued compliance with all conditions set forth in the Certifications and Assurances, and applicable statutes, regulations, and guidelines for all LCTOP funded transit projects.

NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Santa Clara Valley Transportation Authority that the General Manager or the Chief Operating Officer or the Director of Planning and Program Development or the General Counsel are hereby authorized to 17.a

file and execute grant applications and agreements, certifications and assurances, and other documents as may be necessary for the purpose of obtaining financial assistance provided by the State of California Department of Transportation.

PASSED AND ADOPTED by the Santa Clara Valley Transportation Authority Board of Directors on TBD by the following vote:

AYES:

NOES:

ABSENT:

______Jeannie Bruins, Chairperson Board of Directors

Date: ______

______Elaine Baltao, Board Secretary

APPROVED AS TO FORM:

______Robert Fabela, General Counsel 18

Date: May 11, 2017 Current Meeting: May 18, 2017 Board Meeting: June 1, 2017

BOARD MEMORANDUM

TO: Santa Clara Valley Transportation Authority Administration & Finance Committee

THROUGH: General Manager, Nuria I. Fernandez

FROM: Interim Director - Planning & Program Development, Carolyn M. Gonot

SUBJECT: On-call Stormwater Consultant Services

Policy-Related Action: No Government Code Section 84308 Applies: Yes

ACTION ITEM

RECOMMENDATION:

Recommend that the VTA Board of Directors approve an eligible list of three stormwater consultants to provide professional services on projects/programs that include, but are not limited, to the following categories: Phase II Small MS4 Permit, Industrial General Permit, Utility Vault and Underground Structures Permit, and Construction General Permit for Stormwater Consultant services with Engeo, Haley and Aldrich, and Keish Environmental; and authorize the General Manager to execute contracts with firms on this list. The list will be valid for a five-year period. The total amount of all contracts shall not exceed $4,000,000.

BACKGROUND:

Existing MS4, Industrial General Permit, and Utility Vault and Underground Storage stormwater consultant services have been provided by a sole source contract. Over time, the state regulations and project development have expanded the need for stormwater consultant services.

The current solicitation establishes a list of on-call stormwater services list of capable consultants and provides a competitive opportunity for existing and new consultants.

VTA issued a formal Request for Proposals (RFP)S17029 for stormwater engineering services on January 25, 2017. The Pre-Proposal Conference was held on February 7, 2017. The deadline for submitting proposals was February 22, 2017.

DISCUSSION:

The following six firms submitted written proposals (firms are listed in alphabetical order):

 AEI Consultants  Arcadis  Engeo  Haley and Aldrich  Keish Environmental  Lee Incorporated

The review board consisted of a Deputy Director, Construction Contract Compliance Officer, Senior Environmental Engineer, Senior Environmental Planner, and an Environmental Health and Safety Specialist. The proposals were evaluated using the following evaluation criteria: Qualifications of Firm, Staffing and Project Organization, Project Understanding, and Local Firm Preference.

The review board evaluated each proposal based on the above criteria, and also evaluated the firm’s strengths and weaknesses in each specialty area for which the firm was seeking consideration. Interview were held on March 10, 2017 to help determine the most qualified firms. Based on this evaluation, the review board established the following qualified list of consultants for on-call stormwater consultant services:

 Engeo, 6399 San Ignacio Avenue, Suite 150, San Jose, CA 95119  Haley and Alrich, 2107 N. First Street, Suite 380, San Jose, CA 95131  Keish Environmental, 6768 Crosby Court, San Jose, CA 95129

This list can be used by VTA for stormwater services based on specialized needs for Phase II Small MS4 Permit, Industrial General Permit, Utility Vaults and Underground Structures Permit, and Construction General Permit.

Task orders will be developed as necessary for various work items.

ALTERNATIVES:

An individual request for proposal could be issued for each task requiring professional services. However, this approach could significantly limit VTA flexibility to be responsive to stormwater needs.

FISCAL IMPACT:

Funds for a contract are encumbered upon execution of each task order. Staff estimates that up to $4,000,000 may be expended for stormwater services over the next 5 years. The cost of stormwater services will be accounted for and included in the capital budget project budgets as approved by the VTA Board. Budget appropriation for existing projects requiring stormwater services are included in the VTA Biennial Capital Budgets.

Page 2 of 3 18

SMALL BUSINESS ENTERPRISE (SBE) PARTICIPATION:

Small Business Enterprise (SBE) or Disadvantaged Business Enterprise (DBE) goals will be set on individual task orders based on project funding source and the determination of subcontracting opportunities for each assignment of work.

Prepared by: Ann Calnan Memo No. 6127

ATTACHMENTS:  Stormwater Attachment A (PDF)

Page 3 of 3 18.a

Attachment A

On-call Stormwater Consultant Services List of Contractor(s)

Firm Name Name Role Location Phone Engeo Jonathon Project 6399 San Ignacio 925.395.2543 Buck Manager Avenue, Suite 150 San Jose, CA 95119

Haley and Alrich Jennifer Senior Project 2107 N. First St., 408.961.4805 Boyer Manager Suite 380, San Jose, CA 95131

Keish Rachael CEO 6768 Crosby Ct. 408.592.0223 Environmental Keish San Jose, CA 95129

Date: May 3, 2017 Current Meeting: May 18, 2017 Board Meeting: N/A

BOARD MEMORANDUM

TO: Santa Clara Valley Transportation Authority Administration & Finance Committee

THROUGH: General Manager, Nuria I. Fernandez

FROM: Chief Financial Officer, Raj Srinath

SUBJECT: Monthly Investment Report - March 2017

FOR INFORMATION ONLY

BACKGROUND:

The investment activities of the Santa Clara Valley Transportation Authority are in compliance with the Investment of Non-Trust Held Funds Investment Policy, the VTA Retirees’ Other Post- Employment Benefits Trust Investment Policy and the ATU, Local 265 Pension Plan’s Investment Policy.

DISCUSSION:

Real gross domestic product (GDP) increased at an annual rate of 0.7% in the first quarter of 2017, according to the "advance" estimate released by the Bureau of Economic Analysis. The increase in real GDP in the first quarter reflected positive contributions from nonresidential fixed investment, exports, residential fixed investment, and personal consumption expenditures (PCE), that were offset by negative contributions from private inventory investment, state and local government spending, and federal government spending.

Headline consumer prices, as measured by the consumer price index (CPI), rose 2.4% year over year as of March 2017. Core CPI, which excludes volatile food and energy prices increased at a rate of 2.0% year over year as of March 2017. The Federal Reserve continues to target an inflation rate of 2.00%.

The unemployment rate in the San Jose-Sunnyvale-Santa Clara MSA was 3.6% in March 2017, unchanged from a revised 3.6% in February 2017, and below the year-ago estimate of 4.1%. This compares with an unadjusted unemployment rate of 5.1% for California and 4.6% for the nation during the same period.

Market Watch

The S&P 500 Index returned 0.12% in March 2017. Large cap stocks returned 0.06% and small cap stocks returned 0.13%. Within the large cap space, growth stocks outperformed value stocks, returning 1.16% and -1.02%, respectively. The top-performing sectors were materials & processing, consumer discretionary and technology. The worst-performing sectors were producer durables, financial services, and energy.

The Barclays Aggregate index returned -0.05% in March 2017. For the month of March treasuries returned -0.05% and government related securities returned 0.18%, investment grade corporate debt returned -0.23%.

In global markets, the United States 10 year government bond yield ended the month at 2.39%, unchanged from the end of February. The European 10 year government bond yield ended the month at 0.33% and the Japanese 10 year government bond yield finished February at 0.06%.

VTA Enterprise Funds

VTA Enterprise Funds are invested in portfolios managed by Payden & Rygel, the State of California Local Agency Investment Fund (LAIF) and an interest bearing checking account. Investment performance for the Payden & Rygel managed accounts are included in the table below.

The Payden & Rygel weighted average composite portfolio outperformed its policy benchmark in March by 0.03%. The current yield for the Payden long-term portfolio is 1.74%, the mid-term portfolio is 1.37%, and the short-term portfolio is 1.16%.

At month-end the current yield for funds invested in LAIF was 0.82% and the VTA’s checking accounts was 0.51%.

Market performance for each Payden & Rygel account is summarized in the following table:

Investment Performance as of March 2017 Asset Class Fund Manager Mar 3 Mo Y-T-D 1 Yr 3 Yr 5 Yr 10 Yr I-T-D Long-Term Payden & Rygel 0.06% 0.66% 0.66% 0.12% 1.75% 1.55% 3.41% 4.06% Fixed Income Barclays US Govt. Intermediate Index 0.05% 0.54% 0.54% -0.67% 1.55% 1.22% 3.31% 3.98%

Mid-Term Payden & Rygel 0.08% 0.40% 0.40% 0.81% 0.97% 0.88% - 1.38% Fixed Income 1 Merrill Lynch 1- 3 Year Treasury Index 0.03% 0.26% 0.26% 0.24% 0.72% 0.63% - 0.99%

Short-Term Payden & Rygel 0.07% 0.32% 0.32% 1.01% 0.65% 0.57% 1.24% 1.69% Fixed Income 2 iMoneynet Money Market Index 0.05% 0.14% 0.14% 0.35% 0.14% 0.10% 0.73% 1.20%

Composite Portfolio Returns 0.07% 0.44% 0.44% 0.74% 1.13% 1.05% 2.31% 3.43%

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Policy Benchmark Returns 0.04% 0.29% 0.29% 0.12% 0.84% 0.73% 2.03% 3.25% 1 Implemented February 11, 2009 2 Implemented February 14, 2003 VTA Retirees’ Other Post-Employment Benefits (OPEB) Trust

The VTA Retirees’ OPEB Trust Investment Policy requires the following asset allocation:

Asset Allocation Range Target Actual Domestic Fixed Income 15-30% 23% 21% Domestic Large Cap Index 28-68% 51% 53% Int’l Equity Emerging Market 0-10% 6% 6% Private Real Estate 6-16% 11% 11% Absolute Return 0-15% 8% 8% Cash 0-03% 1% 1%

The Retirees’ OPEB composite portfolio outperformed its policy benchmark by 0.02% in the current month. The current yield for the fixed income portfolio is 4.13%.

Market performance for each money manager is summarized in the following table:

Investment Performance as of March 2017 Asset Class Fund Manager Mar 3 Mo Y-T-D 1 Yr 3 Yr 5 Yr 10 Yr I-T-D Large Cap Index State Street 0.12% 6.05% 6.05% 17.09% 10.34% 13.26% 7.52% 5.07% S&P 500 Index 0.12% 6.07% 6.07% 17.20% 10.39% 13.31% 7.51% 4.96%

Fixed Income Dodge & Cox 0.13% 1.46% 1.46% 5.58% 3.85% 3.76% 5.37% 5.96% Barclays US Aggregate Bond Index -0.05% 0.82% 0.82% 0.45% 2.69% 2.34% 4.28% 5.18%

Emerging Market State Street EM(2) 2.55% 11.46% 11.46% MCSI World Emerging Market 2.52% 11.44% 11.44%

US Core Real UBS 4 1.15% 1.15% 6.23% Estate NCREIF NFI-ODCE 1.77% 1.77% 8.34%

Absolute Return Lighthouse 3 0.45% 1.86% 1.86% 5.11% HFRI FoF Index 0.38% 2.33% 2.33% 6.17%

Absolute Return Sky Bridge 3 0.23% 2.52% 2.52% 7.86% HFRI FoF Index 0.38% 2.33% 2.33% 6.17%

Composite Portfolio Returns 0.32% 4.51% 4.51% 12.45% 7.82% 9.58% 7.32% 6.71% Policy Benchmark Returns 0.30% 4.46% 4.46% 11.64% 7.49% 8.38% 6.47% 5.58% 2 Funded June 30, 2016 3 Funded January 28, 2016 4 Funded January 4, 2016

DODGE & COX - The Fixed Income portfolio manager outperformed its benchmark in March 2017 by 0.18%. Contributors to relative outperformance for the month included strong security selection among the portfolio’s corporate and emerging market-related issuers. The portfolio’s nominal yield advantage also added to relative returns.

Page 3 of 7 19

A 7.00% rate of return assumption is used in the annual actuarial analysis for the Retirees’ OPEB. The results of the actuarial analysis determine VTA’s annual contribution rates. Any difference between actual investment returns and the 7.00% assumed annual return is recognized in the same year. The annual returns for the Retirees’ OPEB portfolio have been equivalent to or exceeded the 7.00% assumed rate of return in 9 out of 14 years.

Historic Portfolio Performance for the last fourteen calendar years:

Year Performance Year Performance Year Performance 2003 17.2% 2008 -20.9% 2013 18.9% 2004 7.6% 2009 22.2% 2014 10.8% 2005 3.9% 2010 12.5% 2015 1.1% 2006 11.7% 2011 4.0% 2016 9.3% 2007 6.1% 2012 12.4%

SCVTA-ATU, Local 265 Pension Plan Assets

It is the policy of the SCVTA-ATU Board of Pensions to have a well-managed investment program that provides for the financial needs of the pension plan and allows the investments to be appropriately diversified and prudently invested to protect the safety of the principal while maintaining a reasonable return. Assets are invested within the following investment guidelines:

Asset Allocation Range Target Actual Domestic Fixed Income 15 - 30% 27% 25% Domestic Large-Cap Value 10 - 20% 15% 16% Domestic Large-Cap Index 5 - 15% 10% 11% Domestic Small-Cap Value 5 - 15% 10% 10% Int’l Equity Developed Markets 8 - 18% 13% 13% Int’l Equity Emerging Markets 0-10% 5% 5% US Core Real Estate 5-15% 10% 12% Absolute Return 4-14% 9% 8% Cash 0-05% 1% 0%

The SCVTA-ATU Pension Plan composite portfolio outperformed its policy benchmark in March 2017 by 0.23%. The current yield of the Dodge & Cox Fixed Income portfolio is 3.97%.

Market performance for each money manager is summarized in the following table:

Page 4 of 7 19

Investment Performance as of March 2017 Asset Class Fund Manager Mar 3 Mo Y-T-D 1 Yr 3 Yr 5 Yr 10 Yr I-T-D Fixed Income Dodge & Cox 0.12% 1.37% 1.37% 4.87% 3.74% 3.70% 5.36% 6.19% Barclays US Aggregate Bond Index -0.05% 0.82% 0.82% 0.45% 2.69% 2.34% 4.28% 4.80%

Large-Cap Value Boston Partners -0.60% 4.09% 4.09% 19.64% 7.42% 13.02% 8.03% 9.46% Stocks Russell 1000 Value Index -1.02% 3.26% 3.26% 19.19% 8.66% 13.12% 5.93% 6.97%

Large-Cap Index State Street 0.12% 6.05% 6.05% 17.09% 10.34% 13.26% 7.52% 6.77% S&P 500 Index 0.12% 6.07% 6.07% 17.20% 10.39% 13.31% 7.51% 6.68%

Small-Cap Value Wedge 5 -0.69% 0.57% 0.57% 23.28% 10.18% 14.30% 6.96% 10.39% Stocks Russell 2000 Value Index -0.85% -0.13% -0.13% 29.37% 7.62% 12.54% 6.09% 9.81%

Int’l Equity Dev. MFS 6 3.38% 8.38% 8.38% 10.26% 3.15% 5.55% - 3.32% Markets Growth MSCI AC World ex-US Growth Index 2.83% 9.12% 9.12% 9.62% 1.54% 4.83% - 0.51%

Emerging Market State Street EM7 2.55% 11.46% 11.46% MCSI World Emerging Market 2.52% 11.44% 11.44%

US Core Real UBS 8 1.15% 1.15% 6.23% 10.08% 10.07% - 11.26% Estate NCREIF NFI-ODCE 1.77% 1.77% 8.34% 11.79% 11.98% - 13.32%

Absolute Return Lighthouse 9 0.45% 1.86% 1.86% 5.11% HFRI FoF Index 0.38% 2.33% 2.33% 6.17%

Absolute Return Sky Bridge 9 0.23% 2.52% 2.52% 7.86% HFRI FoF Index 0.38% 2.33% 2.33% 6.17%

Composite Portfolio Returns 10 0.58% 3.13% 3.13% 11.24% 6.04% 8.21% 7.03% 8.13% Policy Benchmark Returns 0.35% 2.81% 2.81% 10.37% 5.73% 7.58% 5.15% 5.96% 5 Funded April 1, 2009. Prior manager was Brandywine with the same benchmark. 6 Funded December 14, 2007. Prior managers were Putnam and Fidelity with MSCI EAFE as their benchmark. 7 Initially funded June 30, 2016 8 Initially funded July 1, 2010. UBS Realty Investors LLC with NCREIF NFI-ODCE as their benchmark. Report 45 days after quarter ended. 9 Funded January 28, 2016 10 Investment performances by prior managers are included in composite returns and historical policy benchmark returns.

DODGE & COX - The Fixed Income portfolio manager outperformed its benchmark in March 2017 by 0.17%. Contributors to relative outperformance for the month included strong security selection among the portfolio’s corporate and emerging market-related issuers. The portfolio’s nominal yield advantage also added to relative returns.

BOSTON PARTNERS - The Domestic Large Cap Value Equity manager outperformed its policy benchmark in March 2017 by 0.42%. Stock selection in the communications, consumer services and technology sectors all contributed to the portfolio’s relative outperformance for the

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month of March.

WEDGE - The Domestic Small Cap Value Equity manager outperformed its policy benchmark in March 2017 by 0.16%. Stock selection in the consumer staples, finance and health sectors all contributed to the portfolio’s relative outperformance.

MFS - The International Equity manager outperformed its policy benchmark in March 2017 by 0.55%. Stock selection within the basic materials and health care sectors both contributed to relative outperformance.

LIGHTHOUSE - The Absolute Return manager outperformed its policy benchmark in March 2017 by 0.07%. Long /Short equity exposure in the United States and International markets were positive contributors to the portfolio on a relative basis for the month of March. Quantitative strategies also contributed to relative outperformance.

SKYBRIDGE - The Absolute Return manager underperformed its policy benchmark in March 2017 by 0.15%. Relative value credit and credit sensitive mortgage backed securities were positive contributors for the month. Event driven strategies were a key detractor to relative performance for the month of March.

A 7.00% rate of return assumption is used in the annual actuarial analysis for the ATU Pension Plan. The results of the actuarial analysis determine VTA’s annual contribution rates. The annual returns for the ATU Pension Plan portfolio have been equivalent to or exceeded the 7.00% assumed rate of return 10 out of 14 years.

Historic Portfolio Performance (calendar year) for the last fourteen calendar years:

Year Performance Year Performance Year Performance 2003 21.5% 2008 -19.7% 2013 16.5% 2004 12.2% 2009 25.7% 2014 7.2% 2005 7.2% 2010 14.0% 2015 0.5% 2006 14.5% 2011 1.7% 2016 9.2% 2007 5.8% 2012 14.5%

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ATU Spousal Medical Trust Fund, Dental, and Vision Plan

Asset allocation for the ATU Spousal Medical Trust Fund (including funds for dental and vision plans) is provided for in the SCVTA-ATU Pension Plan Investment Policy.

Asset Allocation Range Target Actual Domestic Fixed Income 30 -50% 38% 34% Domestic Large Cap Index 50 - 70% 60% 63% Cash 0-5% 2% 3%

The ATU Spousal Medical Trust Fund composite portfolio outperformed its policy benchmark in the current month by 0.06%. The current yield for the fixed income portfolio is 3.97%

Market performance for each money manager is summarized in the following table:

Investment Performance as of March 2017 Asset Class Fund Manager Mar 3 Mo Y-T-D 1 Yr 3 Yr 5 Yr 10 Yr I-T-D Fixed Income Dodge & Cox 0.08% 1.18% 1.18% 4.41% 3.07% 3.40% 5.05% 4.83% Barclays US Aggregate Bond Index -0.05% 0.82% 0.82% 0.45% 2.69% 2.34% 4.28% 4.15%

Large-Cap State Street 0.12% 6.05% 6.05% 17.09% 10.34% 13.26% 7.52% 8.49% Index S&P 500 Index 0.12% 6.07% 6.07% 17.20% 10.39% 13.31% 7.51% 8.48%

Composite Portfolio Returns 0.11% 4.30% 4.30% 12.33% 7.71% 9.72% 7.44% 7.66% Policy Benchmark Returns 0.05% 3.96% 3.96% 10.28% 7.40% 8.92% 6.51% 6.98%

DODGE & COX - The Fixed Income portfolio manager outperformed its benchmark in March 2017 by 0.13%. Contributors to relative outperformance for the month included strong security selection among the portfolio’s corporate and emerging market-related issuers. The portfolio’s nominal yield advantage also added to relative returns.

Other Data

The valuation of VTA’s securities is provided by Interactive Data Corporation (IDC), Merrill Lynch Securities Pricing Service and Bloomberg Generic Pricing Service. These firms are the leading providers of global securities data. They offer the largest information databases with current and historical prices on securities traded in all major markets.

This report complies with VTA’s adopted investment policies. Based on budgeted revenues and expenditures as well as actual transfers to/from reserves, there are sufficient funds available to meet expenditure requirements for the six months ending September 30, 2017.

Prepared By: Sean Bill, Investment Program Manager Memo No. 5854

Page 7 of 7 19.a VTA INVESTMENT COMPOSITE PORTFOLIO PERFORMANCE MONEY MANAGERS' TOTAL MARKET RETURN - TRADE DATE FOR THE MONTH OF MARCH 2017

SUMMARY: March 31, 2017 Total Market Value Mar Total Market Return Total Market Return (1) VTA Benchmark Prior Current $Unrealized %Unrealized Calendar Calendar Description Month Month Gain/Loss Gain/Loss YTD YTD

1 - Fixed Income Long-Term Investment Pool 209,119,073 209,251,961 132,888 0.06% 0.66% 0.54% 1 - Fixed Income Mid-Term Investment Pool 587,418,650 587,857,163 438,513 0.08% 0.40% 0.26% 2 - Fixed Income Short-Term Investment Pool 214,301,328 214,447,782 146,454 0.07% 0.32% 0.14% 3 - VTA Bond Funds with Fiscal Agents 95,248,015 112,877,523 4 - Funds with LAIF Investment Pool 65,000,000 65,000,000 5 - Funds with Union Bank-Congestion Management 13,809,943 13,030,567 6 - Funds with Union Bank-Measure B 2,019,698 1,984,983 7 - Funds with Union Bank DDA account 28,958,174 23,330,811 Total VTA Funds 1,215,874,881 1,227,780,790

1 - Retirees' OPEB - Fixed Income 62,143,469 62,225,061 81,592 0.13% 1.46% 0.82% 2 - Retirees' OPEB - State Street - Index 154,551,337 154,737,950 186,613 0.12% 6.05% 6.07% 3 - Retirees' OPEB - State Street EM 18,024,963 18,484,783 3 - Retirees' OPEB - US Core Real Estate (2) 31,908,124 32,189,466 5 - Retirees' OPEB - Sky Bridge (2) 11,188,439 11,345,879 6 - Retirees' OPEB - Lighthouse (2) 11,504,554 11,574,095 Total Retirees' OPEB Funds 289,320,886 290,557,234

1 - VTA/ATU Pension Fund-Fixed Income 132,528,772 132,684,657 155,885 0.12% 1.37% 0.82% 2 - VTA/ATU Pension Fund-Stock Large Cap Value 81,577,918 81,086,028 (491,890) -0.60% 4.09% 3.26% 3 - VTA/ATU Pension Fund-State Street - Index 55,101,585 55,166,099 64,514 0.12% 6.05% 6.07% 4 - VTA/ATU Pension Fund-Stock Small Cap Value 53,620,732 53,253,791 (366,941) -0.69% 0.57% -0.13% 5 - VTA/ATU Pension Fund- Int'l - Equity Growth 66,642,641 68,893,106 2,250,465 3.38% 8.38% 9.12% 6 - VTA/ATU Pension Fund- Emerging Markets S. Street 27,037,444 27,727,175 7 - VTA/ATU Pension Fund- US Core Real Estate (2) 60,184,645 60,715,307 8 - VTA/ATU Pension Fund- Sky Bridge (2) 22,376,878 22,691,758 9 - VTA/ATU Pension Fund- Lighthouse (2) 23,009,108 23,148,190 Total Pension Fund 522,079,723 525,366,111

1 - ATU Spousal Med Fund - Dodge & Cox - Index 8,814,065 8,821,174 7,109 0.08% 1.18% 0.82% 2 - ATU Spousal Med Fund-State Street - Index 16,411,097 16,430,312 19,215 0.12% 6.05% 6.07% Total ATU Spousal Funds 25,225,162 25,251,486

Total Investments 2,052,500,652 2,068,955,621

Legend: (1) Total includes contributions / withdrawals made during current month. (2) Performance reported quarterly. Attachment Page # 2 19.b VTA INVESTMENT COMPOSITE PORTFOLIO PERFORMANCE. PER GENERAL LEDGER BALANCE - SETTLEMENT DATE FOR THE MONTH OF MARCH 2017 SUMMARY: MARCH 31, 2017 (1) Fiscal 17 Fiscal 17 Feb-17 Mar-17 Year-to-Date Year-to-Date Change for the Month Description Book Value Book Value Feb 2017 Mar 17 Realized Realized /Cost /Cost Earnings - $ Earnings - $ Earnings - $ VTA FUNDS 1 - Fixed Income - Long-Term Investment Pool 209,588,730 210,049,761 2,735,198 2,985,182 249,984 2 - Fixed Income - Mid-Term Investment Pool 561,933,092 587,483,738 4,581,971 5,082,150 500,179 3 - Fixed Income - Short-Term Investment Pool 213,773,939 213,907,524 1,253,480 1,450,917 197,437 4 - VTA Bond Funds with Fiscal Agent (2) 95,248,015 112,877,523 45,110 57,200 12,090 5 - Funds with LAIF Investment Pool 65,000,000 65,000,000 245,580 282,495 36,915 6 - Funds with Union Bank-Congestion Management 13,809,943 13,030,567 9,795 11,079 1,284 7 - Funds with Union Bank-Measure B 2,019,698 1,984,983 2,036 2,226 190 8 - Funds with Union Bank Pooled DDA account 28,958,174 23,330,811 61,665 77,561 15,896 Total VTA Funds 1,190,331,591 1,227,664,907 8,934,835 9,948,810 1,013,975

RETIREES' OPEB FUNDS 1 - Retirees' OPEB -Fixed Income 60,604,698 60,754,831 1,834,355 2,016,021 181,666 2 - Retirees' OPEB -State Street - Index 54,302,619 54,302,619 0 4,270,043 4,270,043 3 - Retirees' OPEB -State Street - EM 16,000,000 16,000,000 0 0 0 4 - Retirees' OPEB -US Core Real Estate - UBS 30,000,000 30,000,000 0 0 0 5 - Retirees' OPEB -Sky Bridge Capital 11,000,000 11,000,000 0 0 0 6 - Retirees' OPEB -Lighthouse Partners 11,000,000 11,000,000 0 0 0 182,907,317 183,057,450 1,834,355 6,286,064 4,451,709

ATU PENSION FUNDS 1 - VTA/ATU Pension Fund -Fixed Income 129,709,882 129,925,948 3,326,713 3,680,990 354,277 2 - VTA/ATU Pension Fund -Stock Large Cap Value - BOSTON 65,810,226 66,085,545 5,079,150 5,354,739 275,589 3 - VTA/ATU Pension Fund -State Street - Index 15,782,135 15,782,135 2,900,860 2,900,860 0 4 - VTA/ATU Pension Fund -Stock Small Cap Value - WEDGE 39,402,569 39,986,227 4,336,333 4,920,074 583,741 5 - VTA/ATU Pension Fund -Int'l - Equity Growth - MFS 45,074,856 45,074,856 1,372,444 1,372,444 0 6 - VTA/ATU Pension Fund -Emerging Markets - State Street (3) 24,000,000 24,000,000 57,706 57,706 0 7 - VTA/ATU Pension Fund -US Core Real Estate - UBS 35,000,000 35,000,000 0 0 0 8 - VTA/ATU Pension Fund -Sky Bridge Capital 22,000,000 22,000,000 0 0 0 9 -VTA/ATU Pension Fund -Lighthouse Partners 22,000,000 22,000,000 0 0 0 Total ATU Pension Funds 398,779,668 399,854,711 17,073,206 18,286,813 1,213,607

ATU SPOUSAL MEDICAL PLAN FUNDS 1 - ATU Spousal Med Fund -Dodge & Cox - Index 5,927,234 5,927,234 0 0 0 2 - ATU Spousal Med Fund -State Street - Index 7,607,187 7,607,187 0 0 0 Total ATU Spousal Plan Funds 13,534,421 13,534,421 0 0 0

Total Investments 1,785,552,997 1,824,111,489 27,842,396 34,521,687 6,679,291 Legend: (1) Total includes contributions / withdrawals made during current month. (2) Bonds Reserves and/or Debt Service Funds (3) Robeco EM Refund August 2016 $43,298, November 2016 $14,408 Attachment Page # 1 20

Date: May 10, 2017 Current Meeting: May 18, 2017 Board Meeting: June 1, 2017

BOARD MEMORANDUM

TO: Santa Clara Valley Transportation Authority Administration & Finance Committee

THROUGH: General Manager, Nuria I. Fernandez

FROM: Director of Government & Public Relations, Jim Lawson

SUBJECT: Legislative Update Matrix

FOR INFORMATION ONLY

BACKGROUND:

The Legislative Update Matrix summarizes the key bills that are being considered by the California State Legislature during the first year of the 2017-2018 regular session. The matrix indicates the status of these measures and any VTA positions with regard to them.

DISCUSSION:

The purpose of this report is to provide an update on important transportation-related issues and legislation facing lawmakers in Sacramento.

Environmental Protection: The Senate has introduced three bills that attempt to insulate the state from any rolling back of federal regulations related to air quality, clean water, endangered species, and workers’ rights that may occur in Washington, DC. This bill package also seeks to protect federal lands within California from being sold to private developers for resource extraction, ensure that federal employees are not penalized under state law for whistleblowing, and shield public information and data resources from federal censorship or destruction.

The main piece of legislation in the package is SB 49 (de Leon and Stern), which prohibits state and local agencies from adopting rules that are less stringent than those currently in place under the federal Clean Air, Clean Water, Safe Drinking Water, and Endangered Species Acts. In addition, the bill prohibits state and local agencies from adopting rules that are less stringent than the federal standards that are currently in place for worker safety.

Meanwhile, SB 50 (Allen) aims to discourage the transfer of ownership of federal public lands within the state to private developers for resource extraction. It specifies that conveyances of federal public lands within California are void unless the State Lands Commission was provided

with the right of first refusal to the conveyance, or the right to arrange for the transfer of the property to another entity.

Finally, SB 51 (Jackson) ensures that federal employees in California will not lose any professional state licenses that they hold for revealing violations of law, unethical actions, or threats to public health and safety. In addition, the bill directs state environmental and public health agencies to protect any information or data, even if parties in Washington, DC, order their censorship or destruction.

State Transit Assistance Program (STA): STA was created through the enactment of the Transportation Development Act in the early 1970s. Funding for the program is derived solely from the sales tax on diesel fuel. The State Controller’s Office is responsible for allocating STA dollars to regional transportation planning agencies (RTPAs) and metropolitan planning organizations (MPOs) in California in the following manner:

 50 percent of all STA funding flows from the Controller’s Office to regions based on the ratio of the population of each region to the population of the state. Each regional agency has the discretion to determine how to suballocate these population-based dollars to eligible STA recipients within its jurisdiction.

 50 percent of all STA funding flows from the Controller’s Office to regions based on a calculation that takes into consideration the locally generated operating revenues of the public transit operators in the region in comparison to the rest of the state. Each regional agency is required to suballocate these revenue-based dollars to public transit operators within its jurisdiction based on the specific operator shares published by the Controller’s Office.

In FY 2016, the Controller’s Office, based on advice from its legal counsel, implemented changes to the methodology used to calculate a public transit operator’s share of STA revenue- based funds. These changes impacted all public transit operators in California to varying degrees. In response, the Legislature included in SB 838, the FY 2017 transportation budget trailer bill, provisions that temporarily deferred the implementation of these changes by requiring the Controller’s Office to use the same list of eligible recipients and the same proportional operator shares from the fourth quarter of FY 2015 to distribute any unallocated FY 2016, and all FY 2017 and FY 2018 STA revenue-based funds.

Subsequent to the enactment of SB 838, the California Transit Association worked with its member agencies and the Controller’s Office to develop a consensus on a follow-up policy bill to address the ambiguities in the current STA statutory and regulatory framework that may have been the source of confusion. This consensus has been incorporated into AB 1113.

While primarily technical in nature, AB 1113 does provide clarity to such important issues as: (1) who is eligible to receive STA revenue-based funds; (2) what revenue sources may be used to determine a public transit operator’s revenue-based share; (3) how an individual operator’s revenue-based share is to be calculated; and (4) how RTPAs and MPOs, which serve as the

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direct recipients of STA population- and revenue-based funds, are to suballocate these dollars to public transit operators within their respective jurisdictions.

Fare Evasion and Passenger Misconduct Violations: In 2012, legislation was enacted to allow a public transit agency to impose and enforce civil administrative penalties for fare evasion and passenger misconduct violations in lieu of criminal penalties. There are a number of advantages to this approach. First, an administrative process does not require the citing officer to appear in court, whereas a trial does. Therefore, public transit security officers would be able to spend less time in court and more time on patrol, thereby enhancing the safety and security of their systems. Second, an administrative process allows public transit agencies to have immediate access to information on the status of individual citations and the penalties assessed, rather than having to track this information down from the courts. Third, an administrative process offers fare evaders and other violators a less confrontational setting than a criminal proceeding, while still affording them the right to a full hearing should they so choose.

However, current state law requires any administrative fines to be allocated to the general fund of the county where the citation was issued, not to the public transit agency. In other words, a public transit agency would incur one-time costs to set up the administrative process, as well as ongoing costs to implement it, but would have to cover these added expenses through its existing operating budget, which would impact the resources that would be available for providing transit service. At the same time, the county would realize cost savings by no longer having to process these cases through the courts, while receiving a revenue windfall from the administrative fines. This situation has proved to be a major disincentive for public transit agencies to transition from criminal penalties to an administrative process for handling fare evasion and passenger misconduct violations.

To address this issue, the California Transit Association is sponsoring SB 614 (Hertzberg), which seeks to remove the barriers in current law that are deterring public transit agencies from switching to an administrative process in lieu of criminal penalties for fare evasion and passenger misconduct violations. In particular, this bill allows the fine revenues to be kept by the public transit agency to help cover the costs associated with implementing the administrative process.

In addition, SB 614 caps the administrative fines that the public transit agency could impose for the first and second violation at $125, and for the third and any subsequent violation at $200. The legislation also requires the public transit agency to offer a minor or a person proving financial hardship the option of community service, which may be performed at the agency’s facilities, in lieu of paying the administrative fine. These provisions are intended to ease the burden on students and low-income individuals in terms of remedying minor transit violations.

Express Lanes: There are a number of pieces of legislation that have been introduced relating to high-occupancy vehicle (HOV) and express lanes. AB 544 (Bloom) is the latest in a string of bills that address the use of HOV and express lanes by low-emission vehicles. Under the state’s existing Clean Air Vehicle Program, certain low-emission vehicles are exempt from the occupancy requirements for using HOV lanes if they display a sticker issued by the Department of Motor Vehicles (DMV). In addition, these vehicles are allowed to access express lanes for free or at a discounted toll rate. The purpose of the program is to provide incentives to

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encourage Californians to purchase such vehicles.

Under the Clean Air Vehicle Program, the DMV issues two types of stickers -- white and green. Pure battery electric, dedicated compressed natural gas, liquid petroleum gas, and hydrogen fuel cell vehicles, such as the Nissan Leaf, Tesla Model S and Toyota Mirai, are eligible for white stickers. Vehicles eligible for green stickers are generally plug-in hybrids, such as the Chevrolet Volt, Ford C-Max Energi, Honda Accord Plug-in Hybrid, and Toyota Prius Plug-in. AB 544 sets expiration dates for white and green stickers, depending on when a particular sticker was issued to the motorist. Under the provisions of this measure, the stickers are generally valid for up to four years.

AB 697 (Fong) exempts privately owned ambulances from paying tolls on express lanes and other tolled facilities when responding to an emergency. Meanwhile, SB 406 (Leyva) allows vehicles that are transporting blood between collection points and hospital or storage centers to use HOV lanes without the required number of occupants. This legislation also requires these vehicles to be granted toll-free or reduced-rate passage when using an express lane.

Finally, AB 344 (Melendez) prohibits tolling agencies from requiring a person who is contesting a toll evasion violation to pre-pay the associated penalty at the time an appeal is sought. Instead, the bill requires the penalty to be paid, if necessary, following the results of an administrative review or upon a finding by a court, whichever occurs later.

Project Delivery: There are three bills -- AB 1454 (Bloom), SB 422 (Wilk) and SB 768 (Allen) -- that seek to re-enact and make permanent the authority for Caltrans and regional transportation agencies, as defined, to utilize public-private partnerships for projects on the state highway system. This statutory authority expired on January 1, 2017. Over the past several years, there have been any number of measures that have tried to address this issue. None of them passed the Legislature, primarily because of opposition from the Professional Engineers in California Government (PECG), the union representing engineers employed by Caltrans and other state agencies.

AB 1282 (Mullin) directs the California State Transportation Agency (CalSTA) to create a task force to establish a process for early engagement of all parties involved in transportation project development in order to: (1) reduce environmental permit processing times; (2) put in place reasonable deadlines for permit approvals; and (3) provide for greater certainty of permit approval requirements. The bill is based on a recommendation made by the California Transportation Commission (CTC) in its annual report to the Legislature. According to the CTC, current state environmental permitting processes for transportation projects lead to increased costs and less efficient project delivery. In its report, the CTC noted, “Early engagement of permitting agencies and a commitment to reasonable deadlines for permit approvals would improve the predictability and management of the project development process and, in turn, reduce the cost of delivering critical infrastructure.”

Security: SB 21 (Hill) requires a public agency that uses surveillance technologies for safety and security purposes to adopt a Surveillance Use Policy. This policy must address eight different items for each surveillance technology that the public agency employs, including the

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authorized purposes for which a particular surveillance technology is being used, the types of data that would be collected from the technology, a description of how the technology will be monitored to ensure compliance with privacy laws, and how collected information can be accessed by members of the public. In addition, the legislation requires a public agency to amend its Surveillance Use Policy whenever it acquires a new surveillance technology in order to incorporate that technology into the policy.

Prepared By: Kurt Evans, Government Affairs Manager Memo No. 5884

Page 5 of 5 20.a LEGISLATIVE UPDATE MATRIX

1B2015 2017 State Legislative Session

May2B 5, 2017

2017 Regular Session Calendar

DAY JANUARY4B DAY JUNE8B 1 Statutes signed into law in 2016 take effect. 2 Last day for bills to be passed out of their house of origin. 4 Legislature reconvenes. 15 Budget must be passed by midnight. 10 Budget must be submitted by the Governor to the Legislature on or before this date.

14B DAY JULY9B 20 Last day to submit bill requests to the Legislative Counsel’s Office. 14 Last day for policy committees to hear and report fiscal bills introduced in the other house.

DAY 5B FEBRUARY 21 Last day for policy committees to hear and report non-fiscal bills introduced 17 Last day for new bills to be introduced. in the other house. Summer Recess begins upon adjournment, provided that the Budget Bill has been enacted. DAY MARCH

None. DAY AUGUST10B 21 Legislature reconvenes from Summer Recess. DAY APRIL6B

6 Spring Recess begins upon adjournment. DAY SEPTEMBER11B 17 Legislature reconvenes from Spring Recess. 1 Last day for fiscal committees to hear and report to the floor bills introduced in the other house. 28 Last day for policy committees to hear and report fiscal bills introduced in their house of origin. 8 Last day to amend bills on the Assembly and Senate floors. 15 Last day for each house to pass bills. Interim Recess begins at the end of this day’s session. DAY MAY7B

12 Last day for policy committees to hear and report to the floor non-fiscal bills

introduced in their house of origin. DAY OCTOBER12B 26 Last day for fiscal committees to hear and report to the floor bills introduced 15 Last day for the Governor to sign or veto bills passed by the Legislature in their house of origin. before September 15, and in his possession on or after September 15.

2017-2018 Legislative Update Matrix

20.a

State Assembly Bills

State Assembly Subject Last Status VTA Bills Amended Position AB 1 Creates the Road Maintenance and Rehabilitation Account to be funded from the following As Assembly Support (Frazier) sources: (1) an increase in the gasoline excise tax of 12 cents per gallon, which would be indexed Introduced Transportation Transportation to inflation every three years; (2) a registration surcharge of $38 per year imposed on all motor Committee Funding vehicles, which would be indexed to inflation every three years; (3) a registration surcharge of $165 per year imposed on zero-emission vehicles starting with the second year of ownership, which would be indexed to inflation every three years; and (4) revenues obtained by Caltrans through the rental or sale of property, the sale of documents, and charges for other miscellaneous services provided to the public. Distributes the revenues deposited into the Road Maintenance and Rehabilitation Account in the following manner: (1) $200 million per year would be taken off the top for allocation to local jurisdictions that have sought and gained voter approval of a local transportation special tax, or that have imposed uniform developer or other fees solely for transportation improvements; (b) $80 million per year would be taken off the top and distributed to the Active Transportation Program; (c) for FY 2018 through FY 2021, $30 million per year would be taken off the top to be used to fund the implementation of advance environmental mitigation plans for future transportation projects; (4) $2 million per year would be taken off the top and distributed to the California State University to conduct transportation research, and transportation- related workforce education, training and development; (5) $3 million would be taken off the top and distributed to the University of California for institutes of transportation studies; (6) 50 percent of the amount remaining after the aforementioned set-asides would be allocated to Caltrans for maintenance of the state highway system, and for projects programmed in the State Highway Operation and Protection Program (SHOPP); and (6) 50 percent of the amount remaining after the aforementioned set-asides would be provided to cities and counties for their local roadway systems. Provides new funding for public transit through the following sources: (1) an increase in the diesel sales tax by a rate of 3.5 percent for the State Transit Assistance Program (STA); (2) an increase in the percentage of cap-and-trade auction proceeds continuously appropriated to the Transit and Intercity Rail Capital Program from 10 percent to 20 percent; and (3) an increase in the percentage of cap-and-trade auction proceeds continuously appropriated to the Low Carbon Transit Operations Program from 5 percent to 10 percent. Increases the diesel excise tax by 20 cents per gallon, which would be indexed to inflation every three years, and deposits these revenues into the Trade Corridors Improvement Fund for goods movement projects programmed by the California Transportation Commission (CTC). Requires revenues apportioned to California from the formula- based National Highway Freight Program to be deposited into the Trade Corridors Improvement Fund. Converts the variable gas tax to a fixed rate of 17.3 cents per gallon, which would be indexed to inflation every three years. Requires the repayment of approximately $700 million in outstanding loans owed by the General Fund to various transportation accounts over a two-year period ending June 30, 2018. Distributes these one-time revenues in the following manner: (1) 50 percent to Caltrans for maintenance of the state highway system, and for SHOPP projects; and (2) 50 percent to cities and counties for their local roadway systems. Recaptures $500 million of the annual amount of vehicle weight fee revenues for the State Highway Account over a five-year period ending June 30, 2022. 2017-2018 Legislative Update Matrix

20.a State Assembly Subject Last Status VTA Bills Amended Position AB 5 Enacts the Opportunity to Work Act. Requires an employer with 10 or more employees to offer As Assembly (Gonzalez-Fletcher) additional hours of work to an existing employee who, in the employer’s reasonable judgment, has Introduced Appropriations Opportunity to Work the skills and experience to perform the additional work, before hiring any additional employees or Committee Act subcontractors. Requires an employer to use a transparent and non-discriminatory process to distribute the additional hours of work among existing employees. Specifies that an employer shall not be required to offer an existing employee additional work hours if the employer would be required to compensate the employee with overtime pay under any law or collective bargaining agreement. Requires an employer to retain all of the following: (1) for any new hire of an employee or subcontractor, documentation that the employer offered additional hours of work to existing employees prior to hiring the new employee or subcontractor; (2) work schedules of all employees; and (3) any additional records or documents that the Division of Labor Standards Enforcement requires an employer to maintain to demonstrate compliance with this bill. Authorizes the Division of Labor Standards Enforcement to adopt rules and regulations to carry out the provisions of the bill. Allows an employee to file a complaint for a violation of the provisions of the bill with the Division of Labor Standards Enforcement or bring a civil action in a court of competent jurisdiction. Provides that it is unlawful for an employer or any other party to discriminate in any manner or take adverse action against any employee in retaliation for exercising his or her rights under the bill. To the extent required by federal law, authorizes all or any portion of the applicable requirements of the bill to be waived in a bona fide collective bargaining agreement provided that such waiver is explicitly set forth in the agreement in clear and unambiguous terms. AB 12 By January 1, 2020, requires each state agency to do all of the following: (1) review all provisions As Assembly (Cooley) of the California Code of Regulations adopted by that agency; (2) identify any regulations that are Introduced Appropriations State Agency duplicative, overlapping, inconsistent, or out of date; and (3) adopt, amend or repeal regulations to Committee Regulations reconcile or eliminate any duplication, overlap, inconsistencies, or out-of-date provisions. By January 1, 2020, requires each state agency, if applicable, to notify a department, board or other unit within that agency of any existing regulation adopted by that department, board or other unit that the agency has determined may be duplicative, overlapping or inconsistent with a regulation adopted by another department, board or other unit within that agency. Requires the department, board or other unit to notify the agency of revisions to regulations that it proposes to make to address any duplication, overlap or inconsistencies.

2017-2018 Legislative Update Matrix

20.a State Assembly Subject Last Status VTA Bills Amended Position AB 17 Creates the Transit Pass Program to support local programs that provide free or reduced-fare public As Assembly (Holden) transit passes to any of the following: (1) pupils attending public middle schools or high schools Introduced Appropriations Transit Pass Program that are eligible for funding under Title 1 of the federal No Child Left Behind Act of 2001; (2) Committee students attending a California community college who qualify for a waiver of student fees pursuant to the Education Code; or (3) a student who attends a campus of the California State University or the University of California, and who receives an award under the Cal Grant Program, the federal Pell Grant Program, or both. Requires Caltrans to administer this program. Provides that the Transit Pass Program is to be funded from money made available for this purpose through appropriations by the Legislature. Requires Caltrans to develop guidelines describing the criteria that eligible transit providers shall use to make available free or reduced-fare transit passes to eligible participants. Defines “eligible transit provider” to mean a transportation agency, transportation planning agency or county transportation commission that is eligible to receive State Transit Assistance Program (STA) funding. Defines “eligible participants” to mean a public agency, including a transit operator, school district, community college district, the California State University, or the University of California. Requires Caltrans to develop performance measures and reporting requirements to evaluate the effectiveness of the Transit Pass Program, including an annual update of the number of free or reduced-fare transit passes distributed to students and whether the program is increasing transit ridership among students. Requires funds allocated to the Transit Pass Program to be expended to provide low- or no-cost transit passes to students through programs that support new or existing transit pass programs. Allows a an eligible transit provider to give priority to an application from an eligible participant with an existing, successful transit pass program, provided that the eligible participant can demonstrate that the additional funds will further reduce the cost of the transit pass or expand program eligibility. Requires each eligible transit provider to receive $20,000 from the Transit Pass Program. After the initial $20,000 amount is allocated, requires the remaining program funds to be distributed according to the STA formula. Requires any funds allocated during a fiscal year, but not distributed, to be added to the allocation for the following fiscal year. AB 28 Reinstates the statutory authorization for Caltrans to participate in a federal program that allows 3/2/17 Signed into Support (Frazier) states to assume the responsibilities of the Federal Highway Administration (FHWA) under the Law: Chapter Federal Environmental National Environmental Policy Act (NEPA). In addition, reinstates provisions that authorize #4 Review Process Caltrans to consent to the jurisdiction of the federal courts with regard to the assumption of FHWA’s responsibilities under NEPA and that waive the state’s Eleventh Amendment protection against NEPA-related lawsuits brought in federal court. Repeals the provisions of the bill on January 1, 2020.

2017-2018 Legislative Update Matrix

20.a State Assembly Subject Last Status VTA Bills Amended Position AB 33 By March 30, 2018, requires the California Public Utilities Commission (CPUC) to authorize 3/23/17 Assembly (Quirk) electrical corporations to offer programs and investments in electric vehicle service equipment Appropriations Electric Vehicle installed in residential garages of customers who purchase a used electric vehicle. Requires such Committee Service Equipment programs and investments to be designed to: (1) accelerate widespread transportation electrification; (2) achieve ratepayer benefits; (3) reduce dependence on petroleum; (4) meet air quality standards; and (5) reduce greenhouse gas emissions. Requires the CPUC to approve, or modify and approve, each proposal to offer such programs and investments filed by an electrical corporation within six months of the date of filing of the completed proposal. Specifies that customers of an electrical corporation participating in a resident garage electric vehicle charging program to receive electrical service pursuant to a grid-integrated rate. Defines “grid-integrated rate” to mean an electrical service rate design that reflects dynamic electrical grid conditions. AB 65 Prohibits money in the Transportation Debt Service Fund from being used to pay debt service for As Assembly (Patterson) bonds issued pursuant to the Safe, Reliable high-Speed Passenger Train Bond Act for the 21st Introduced Transportation High-Speed Rail Bond Century (Proposition 1A). Committee Debt Service AB 66 Requires the business plan prepared by the California High-Speed Rail Authority to identify As Assembly (Patterson) projected financing costs for each segment or combination of segments of the high-speed rail Introduced Transportation California High-Speed system for which financing is proposed by the authority. In the business plan and in other reports Committee Rail Authority: that High-Speed Rail Authority is required to prepare, specifies that the authority shall call out any Reporting significant changes in scope for segments of the high-speed rail system identified in the previous Requirements version of the report, and provide an explanation of adjustments in cost and schedule attributable to the changes. AB 77 Requires the Office of Administrative Law to submit each major regulation to both the Assembly 2/7/17 Assembly (Fong) and Senate for review. Provides that a regulation shall not become effective if the Legislature Appropriations Regulations: enacts a statute to override it. Committee Legislative Review AB 87 Requires the Department of Motor Vehicles (DMV) to revoke the registration of an autonomous As Assembly (Ting) vehicle that is being operated on public streets or roads in violation of current state law. Authorizes Introduced Transportation Autonomous Vehicles a peace officer to cause the removal and seizure of an autonomous vehicle operating on public Committee streets or roads with a registration that has been revoked by the DMV. Authorizes the DMV to impose a penalty of up to $25,000 per day that an autonomous vehicle is operated on public streets roads in violation of current state law.

2017-2018 Legislative Update Matrix

20.a State Assembly Subject Last Status VTA Bills Amended Position AB 91 Beginning July 1, 2018, prohibits a high-occupancy vehicle (HOV) lane from being established in 3/22/17 Assembly (Cervantes) Riverside County, unless the lane is established as an HOV lane only during the hours of heavy Appropriations HOV Lanes: commuter traffic, as determined by Caltrans. Requires any existing HOV lane in Riverside County Committee Riverside County that is not a toll lane to be modified to operate as an HOV lane under those same conditions. Specifies that those two provisions of the bill would apply only to the extent that they do not endanger federal funding. On or after May 1, 2019, authorizes Caltrans to reinstate 24-hour HOV lanes in Riverside County if the department determines that there is an adverse impact on safety, traffic conditions or the environment by limiting the use of HOV lanes during hours of heavy commuter traffic. Before reinstating 24-hour HOV lanes in Riverside County, requires Caltrans to notify the Assembly Transportation Committee, and the Senate Transportation & Housing Committee. AB 92 Extends the sunset date from January 1, 2018, to January 1, 2023, for provisions in current law that As Senate Rules (Bonta) authorize the retention proceeds withheld from any payment by a public entity from the original Introduced Committee Public Contracts: contractor, by the original contractor from any subcontractor, and by a subcontractor from any Retention Proceeds other subcontractor to exceed 5 percent if: (1) a finding is made prior to contract bid that the project is substantially complex and requires a higher retention; and (2) this finding and the actual retention amount is included in the bid documents. AB 151 Requires CARB to report to the appropriate policy and fiscal committees of the Legislature to 5/2/17 Assembly (Burke) receive input, guidance and assistance before adopting guidelines and regulations to implement the Appropriations Climate Change: Scoping Plan for ensuring that statewide greenhouse gas emissions are reduced to at least 40 Committee Scoping Plan and percent below the 1990 level by 2030. By January 1, 2019, requires CARB to report to the Offset Protocols Legislature on the need for increased education, career technical education, job training, and workforce development in ensuring that statewide greenhouse gas emissions are reduced to at least 40 percent below the 1990 level by 2030. Establishes the Compliance Offsets Protocol Task Force to investigate, analyze and provide guidance to CARB in approving new offset protocols for a market-based compliance mechanism, with a priority on the development of new urban offset protocols. AB 161 Authorizes the Department of Finance to identify infrastructure projects in the state for which the As Assembly (Levine) department will guarantee a rate of return for an investment made in that infrastructure project by Introduced Appropriations CalPERS: the Public Employees’ Retirement System (CalPERS). Creates the Reinvesting in California Committee Infrastructure Special Fund as a continuously appropriated fund. Requires money in the fund to be used to pay Investments the rate of return on investments made in infrastructure projects. States the intent of the Legislature to identify special fund dollars to be transferred to the Reinvesting in California Special Fund. AB 174 Requires at least one voting member of the California Transportation Commission (CTC) to reside As Assembly Floor (Bigelow) in a rural county with a population of less than 100,000 people. Introduced California Transportation Commission: Rural County Representation

2017-2018 Legislative Update Matrix

20.a State Assembly Subject Last Status VTA Bills Amended Position AB 179 Requires one of the Governor’s appointments to the California Transportation Commission (CTC) 4/20/17 Assembly Floor (Cervantes) to have worked directly with those communities in the state that are most significantly burdened by, California and vulnerable to, high levels of pollution, including those communities with racially and ethnically Transportation diverse populations or with low-income populations. Requires the CTC and the California Air Commission: Resources Board (CARB) to hold at least two joint meetings per calendar year to coordinate their Gubernatorial implementation of the state’s transportation policies. Appointments AB 193 By July 1, 2019, requires the California Air Resources Board (CARB) to establish the Clean As Assembly (Cervantes) Reused Vehicle Rebate Project to provide incentives to low- and moderate-income individuals to Introduced Appropriations Clean Reused Vehicle purchase used clean air vehicles. Requires the project to provide an applicant with any of the Committee Rebate Project following: (1) a rebate or other incentive with a value of up to $1,800 for the acquisition of an eligible used vehicle from a licensed dealer; (2) a rebate or other incentive for the replacement or refurbishment of a battery and related components for an eligible used vehicle, for an extended warranty for the battery and related components, or for both; or (3) a rebate or other incentive for an extended service warranty to cover unexpected vehicle repairs not covered by the manufacturer’s warranty related to unique problems in eligible used vehicles. Limits these rebates and incentives to low- and moderate-income individuals residing in disadvantaged communities. In addition, limits the Clean Reused Vehicle Rebate Project to applicants who reside in one of the following: (1) a county where existing clean vehicle rebate programs have been underutilized; or (2) an air district that has been designated by CARB as being in non-attainment and as not meeting federal ambient air quality standards. AB 195 If a ballot measure proposed by a local governing body calls for imposing a tax or raising the rate 3/14/17 Senate Rules (Obernolte) of a current tax, requires the ballot to include in the statement of the measure to be voted on the Committee Local Government amount of money to be raised annually, and the rate and duration of the tax to be levied. Requires Ballot Measures the statement of the measure to be a true and impartial synopsis of its purpose, and to be in language that is neither argumentative nor likely to create prejudice for or against the measure. AB 278 Exempts from the California Environmental Quality Act (CEQA) a project that consists of the As Assembly (Steinorth) inspection, maintenance, repair, rehabilitation, replacement, or removal of existing transportation Introduced Natural CEQA Exemption for infrastructure, including highways, roadways, bridges, tunnels, culverts, public transit systems, Resources Certain Transportation bikeways, paths and sidewalks serving bicycles or pedestrians, and the addition of auxiliary lanes Committee Projects or bikeways to existing transportation infrastructure, if the project meets all of the following conditions: (1) the project is located within an existing right-of-way; (2) any area surrounding the right-of-way that is to be altered as a result of construction activities that are necessary for the completion of the project will be restored to its condition before the project; and (3) the project does not add additional motor vehicle lanes, except auxiliary lanes.

2017-2018 Legislative Update Matrix

20.a State Assembly Subject Last Status VTA Bills Amended Position AB 301 By June 1, 2019, requires the Department of Motor Vehicles (DMV) to ensure that the maximum 4/19/17 Assembly (Rodriguez) wait time to obtain an appointment to take the driving skills test to operate a commercial vehicle Appropriations Commercial Driver’s does not exceed seven days. Committee License: Driving Skill Test

AB 332 Allows a local authority to temporarily close a highway under its jurisdiction to through traffic in 3/9/17 Senate Rules (Bocanegra) order to curb a serious nuisance, including illegal dumping. Also allows a local authority to Committee Local Street Closures temporarily close a highway under its jurisdiction that has been designated as a through highway or arterial street if the closure can be accomplished without a significant impact to the flow of traffic.

2017-2018 Legislative Update Matrix

20.a State Assembly Subject Last Status VTA Bills Amended Position AB 342 Authorizes the city of San Jose and the city/county of San Francisco to implement a five-year pilot 4/6/17 Assembly Support (Chiu) program utilizing an automated speed enforcement (ASE) system for speed limit enforcement on Transportation Automated Speed streets or portions of streets that: (1) have a speed limit of 50 miles per hour or less; and (2) have Committee Enforcement: San had a documented incidence of collisions resulting in fatalities or injuries as evidenced by either a Jose and San Francisco three-year fatality and injury collision rate, or a three-year fatality rate that is higher than the three- Five-Year Pilot year collision rates published by Caltrans for comparable roadways. Requires the ASE system to Program be activated no later than January 1, 2019, and to be operated for no longer than five years. Requires the ASE system to meet all of the following: (1) is operated in cooperation with a law enforcement agency; (2) clearly identifies the presence of the fixed or mobile ASE system by signs stating “Photo Enforced” along with the posted speed limit; (3) identifies vehicles containing a mobile ASE system with distinctive markings; (4) identifies the streets or portions of the streets that have been approved for enforcement using an ASE system and the hours of enforcement on the municipality’s Internet Web site; (5) utilizes trained peace officers or other trained designated municipal employees to oversee the operation of the ASE system and maintain control over enforcement activities; (6) ensures that the ASE system is regularly inspected, and certifies that the system is installed and operated properly; and (7) utilizes fixed and mobile systems that provide real-time notification when violations are detected. Prior to enforcing speed limits using an ASE system, requires the city of San Jose and the city/county of San Francisco to do both of the following: (1) administer a public information campaign for at least 30 calendar days prior to the initial commencement of the use of the system; and (2) issue warning notices rather than notices of violation for the first violations detected by the ASE system during the first 90 calendars days of enforcement. If the ASE system is utilized on additional streets after initial implementation, requires the city of San Jose and the city/county of San Francisco to issue warning notices rather than notices of violations during the first 30 calendar days of enforcement for the additional streets. Requires the governing body of the city of San Jose and the city/county of San Francisco to adopt an ASE System Use Policy to include all of the following: (1) specific purposes for the ASE system, the uses that are authorized, the rules and processes required prior to that use, and the uses that are prohibited; (2) the data or information that can be collected by the ASE system, the individuals who can access or use the collected information, and the rules and processes related to the access or use of the information; and (3) provisions for protecting data from unauthorized access, data retention, public access, third-party data sharing, training, auditing, and oversight to ensure compliance with the policy. Requires the governing body of the city of San Jose and the city/county of San Francisco to approve an ASE System Impact Report to include all of the following: (1) description of the ASE system and how it works; (2) proposed purpose of the ASE system; (3) locations where the ASE system may be deployed, and traffic data for those locations; (4) assessment of the potential impact of the ASE system on civil liberties and civil rights, and any plans to safeguard those public rights; (5) a determination of why locations in low-income neighborhoods experience high fatality and injury collisions due to unsafe speed if potential deployment locations of the ASE system are predominantly in such neighborhoods; and (6) fiscal costs associated with the ASE system. Specifies that a speed violation recorded by the ASE system shall be subject only to a civil penalty, the total amount of which cannot exceed $100.

2017-2018 Legislative Update Matrix

20.a State Assembly Subject Last Status VTA Bills Amended Position AB 344 Specifies that a person contesting a notice of a toll evasion violation or a notice of a delinquent toll As Senate Rules (Melendez) evasion violation shall not be required to pay the penalty until after it is found that the person Introduced Committee Toll Evasion committed the violation. Violations AB 351 Requires loans of revenues to the General Fund from the State Highway Account, the Public As Assembly (Melendez) Transportation Account (PTA), the Bicycle Transportation Account, the Motor Vehicle Fuel Introduced Transportation Transportation Account, the Highway Users Tax Account (HUTA), the Pedestrian Safety Account, the Committee Funding: Loan Transportation Investment Fund, the Traffic Congestion Relief Fund (TCRF), the Motor Vehicle Repayments, Vehicle Account, and the Local Airport Loan Account to be repaid by December 31, 2018, to the account or Weight Fees and Non- fund from which the loan was made. Specifies that this requirement applies to all loans that Article 19 otherwise have a repayment date of January 1, 2019, or later. Eliminates the annual transfer of Transportation vehicle weight fee revenues from the State Highway Account to the General Fund for payment of Revenues debt service for general obligation bonds issued for transportation purposes and, instead, retains these revenues in the State Highway Account. Deletes provisions in current law relating to the reimbursement of the State Highway Account with gasoline excise tax revenues for vehicle weight fee revenues transferred to the General Fund and, instead, allows these gasoline excise tax revenues to be allocated in the following manner: (1) 44 percent to the State Transportation Improvement Program (STIP); (2) 44 to cities and counties for local streets/roads; and (3) 44 percent to the State Highway Operation and Protection Program (SHOPP). Eliminates the annual transfer of so-called Non-Article 19 revenues obtained by Caltrans through the rental or sale of property, the sale of documents, and charges for other miscellaneous services provided to the public to the General Fund, and, instead, retains these revenues in the State Highway Account for transportation purposes. AB 378 To complement direct emissions reduction measures in ensuring that statewide greenhouse gas 4/18/17 Assembly (C. Garcia) emissions are reduced to at least 40 percent below the 1990 level by 2030, authorizes the California Appropriations Greenhouse Gas Air Resources Board (CARB) to adopt or amend regulations that establish a system of market- Committee Emissions Reductions based compliance declining aggregate emissions limits for sources or categories of sources that emit greenhouse gases, applicable from January 1, 2021, to December 31, 2030. Provides that CARB shall not permit a facility to increase its annual greenhouse gas emissions compared to the annual average of such emissions reported by the facility from 2014 to 2016. Authorizes CARB to adopt no-trade zones or facility-specific declining greenhouse gas emissions limits where facilities’ emissions contribute to a cumulative pollution burden that creates a significant health impact. In consultation with the affected air pollution control and air pollution management districts, requires CARB to adopt standards for emissions of criteria air pollutants and toxic air contaminants at industrial facilities that are subject to a market-based compliance mechanism. Prohibits CARB from allocating allowances as part of a market-based compliance mechanism to industrial facilities that do not meet these standards. Requires CARB, in ensuring that statewide greenhouse gas emissions are reduced to at least 40 percent below the 1990 level by 2030, to adopt the most effective and equitable mix of emissions reduction measures, and to ensure that such measures collectively and individually support achieving air quality, and other environmental and public health goals.

2017-2018 Legislative Update Matrix

20.a State Assembly Subject Last Status VTA Bills Amended Position AB 382 Deletes provisions in current law requiring $833,000 per month to be transferred from the Off- As Assembly (Voepel) Highway Vehicle Trust Fund to the General Fund and, instead, retains these revenues in the trust Introduced Appropriations Off-Highway Vehicle fund for off-highway motor vehicle recreation purposes. Committee Trust Fund AB 398 Requires the annual report submitted by the Department of Finance to the Legislature regarding the 4/17/17 Assembly (E. Garcia) status of projects funded with cap-and-trade auction proceeds from the Greenhouse Gas Reduction Appropriations Greenhouse Gas Fund to include, at a minimum, all of the following: (1) the greenhouse gas emissions reductions Committee Reduction Fund: attributable to each project; (2) the environmental and public health benefits, as applicable, Department of Finance attributable to each project; (3) actions and outcomes from those actions taken to assist residents of Report disadvantaged communities and other target populations with the business, employment and training opportunities offered through activities funded in whole or in part with money from the fund; (4) the geographic location, industry sector and number of employees of the business entities receiving money from the fund; (5) the number of jobs created, including wage levels, by the business entities receiving money from the fund; and (6) the amount of other public or private money leveraged with investments from the fund. Requires state agencies expending cap-and-trade auction proceeds from the Greenhouse Gas Reduction Fund to condition the acceptance of the money on the recipient providing the information necessary to meet the reporting requirements of this bill. Defines “targeted populations” to mean communities and groups of individuals experiencing high levels of unemployment or poverty. Requires the California Air Resources Board (CARB) to appoint a dedicated ombudsman to respond to requests for data and analyses that are not readily available to the public. Requires CARB to process such requests in a timely manner. Requires CARB and regional air districts to coordinate efforts to share data on the emissions of air pollutants, including greenhouse gases. AB 408 Changes the standards by which courts decide whether to award litigation expenses in eminent As Assembly (Chen) domain actions. Provides that if a court finds, on motion of the defendant, that the offer of the Introduced Judiciary Eminent Domain: plaintiff was lower than 90 percent of the compensation awarded in the proceeding, then the court Committee Final Offer of would be required to include the defendant’s litigation expenses in the costs allowed. Provides that Compensation if the court finds that the offer of the plaintiff was at least 90 percent and less than 100 percent of the compensation awarded in the proceeding, then the court may include the defendant’s litigation expenses in the costs allowed. AB 467 Upon the request of a local transportation authority, exempts a county elections official from 4/17/17 Assembly (Mullin) including the entire adopted expenditure plan for a retail transactions and use tax in the voter Elections & Local Transportation information handbook if: (1) the authority posts the plan on its Internet Web site; and (2) the Redistricting Authorities: sample ballot and voter information handbook sent to voters include information on viewing an Committee Expenditure Plans electronic version of the plan on the authority’s Internet Web site and on obtaining a printed copy of the plan by calling the county elections office. Requires the county elections official to mail a printed copy of the plan at no cost to each person requesting it, if the county elections official chooses to exercise the exemption provided by this bill.

2017-2018 Legislative Update Matrix

20.a State Assembly Subject Last Status VTA Bills Amended Position AB 468 Authorizes the Los Angeles County Metropolitan Transportation Authority (LA Metro) to issue a 3/23/17 Assembly (Santiago) prohibition order to any person cited for committing certain acts on LA Metro vehicles or at LA Transportation LA Metro: Prohibition Metro’s transit facilities, under which the person would be prohibited from entering the property, Committee Orders facilities or vehicles of LA Metro for a specified period of time. AB 496 Creates the Traffic Relief and Road Improvement Account to be funded from the following 2/28/17 Assembly (Fong) sources: (1) sales and use tax revenues from new and used motor vehicle sales and purchases; (2) Transportation Transportation insurance tax revenues from automobile and motor vehicle policies; (3) specified diesel sales tax Committee Funding revenues transferred from the State Transit Assistance (STA) Program, if those revenues are backfilled with cap-and-trade auction proceeds from the Greenhouse Gas Reduction Fund; (4) specified vehicle registration fee revenues transferred from the Air Quality Improvement Fund, the Alternative and Renewable Fuel and Vehicle Technology Fund, and the Enhanced Fleet Modernization Subaccount, if those revenues are backfilled with cap-and-trade auction proceeds from the Greenhouse Gas Reduction Fund; and (5) revenues obtained by Caltrans through the rental or sale of property, the sale of documents, and charges for other miscellaneous services provided to the public. Distributes the revenues deposited into the Traffic Relief and Road Improvement Account in the following manner: (1) 40 percent would be allocated to Caltrans for maintenance of the state highway system, and for projects programmed in the State Highway Operation and Protection Program (SHOPP); (2) 40 percent would be provided to cities and counties for their local roadway systems; and (3) 20 percent would be allocated for projects programmed in the State Transportation Improvement Program (STIP) that create measurable reductions in traffic congestion. Requires revenues apportioned to California from the formula- based National Highway Freight Program to be deposited into the Trade Corridors Improvement Fund and allocated by the California Transportation Commission (CTC) according to the original guidelines that the commission adopted for the fund in 2007. Requires the repayment of approximately $700 million in outstanding loans owed by the General Fund to various transportation accounts by December 31, 2017. Distributes these one-time revenues to cities and counties for their local roadway systems. Eliminates the annual transfer of vehicle weight fee revenues from the State Highway Account to the General Fund for payment of debt service for general obligation bonds issued for transportation purposes and, instead, retains these revenues in the State Highway Account. Deletes provisions in current law relating to the reimbursement of the State Highway Account with gasoline excise tax revenues for vehicle weight fee revenues transferred to the General Fund and, instead, allows these gasoline excise tax revenues to be allocated in the following manner: (1) 44 percent to the STIP; (2) 44 to cities and counties for local streets/roads; and (3) 44 percent to the SHOPP.

2017-2018 Legislative Update Matrix

20.a State Assembly Subject Last Status VTA Bills Amended Position AB 515 Requires Caltrans to prepare a State Highway System Management Plan consisting of the existing As Assembly (Frazier) 10-year rehabilitation plan that forms the basis of the State Highway Operation and Protection Introduced Appropriations State Highway System Program (SHOPP), and a five-year maintenance plan addressing the maintenance needs of the state Committee Management Plan highway system. Requires the maintenance plan to include only maintenance activities that, if not performed, could result in increased SHOPP costs in the future. In addition, requires the maintenance plan to identify any existing backlog in those maintenance activities, and to recommend a strategy, specific activities and an associated funding level to reduce or prevent any backlog during the plan’s five-year period. Requires the State Highway System Management Plan to do all of the following: (1) include specific milestones, as well as quantifiable accomplishments, goals, objectives, and performance measures consistent with Caltrans’ Assets Management Plan; (2) contain strategies to control costs and improve the efficiency of the SHOPP; and (3) attempt to balance resources between the SHOPP and maintenance activities in order to achieve identified milestones and goals at the lowest possible long-term total cost. Requires the State Highway Management Plan to be updated every two years. AB 536 If compliance with a state law would result in a county losing federal funding, authorizes the As Assembly (Melendez) county to elect to not comply with that law to the extent that compliance jeopardizes its federal Introduced Judiciary Counties: Federal funding. Committee Funding AB 544 Provides that decals, stickers or other identifiers issued by the Department of Motor Vehicles 4/27/17 Assembly (Bloom) (DMV) prior to January 1, 2017, allowing battery electric, hydrogen fuel cell, compressed natural Appropriations HOV Lanes: Low- gas, and plug-in hybrid electric vehicles to use high-occupancy vehicle (HOV) lanes without the Committee Emission and Energy required number of occupants in the vehicle are valid until January 1, 2019. Provides that decals, Efficient Vehicles stickers or other identifies issued by the DMV to such vehicles on or after January 1, 2017, and before January 1, 2018, are valid until January 1, 2021. Provides that decals, stickers or other identifiers issued by the DMV to such vehicles on or after January 1, 2018, and before January 1, 2019, are valid until January 1, 2022. Provides that decals, stickers or other identifiers issued by the DMV to such vehicles on or after January 1, 2019, are valid until January 1 of the fourth year after the year of issuance. Repeals the provisions of this bill, as well as those in current law related to the issuance of such decals, stickers and other identifiers on September 30, 2025. AB 570 In making a determination of apportionment of permanent disability based on causation for As Assembly (Gonzalez-Fletcher) purposes of payment of workers’ compensation, prohibits apportionment, in the case of a physical Introduced Appropriations Workers’ injury occurring on or after January 1, 2018, from being based on pregnancy, childbirth, or other Committee Compensation: medical conditions related to pregnancy or childbirth. Permanent Disability Causation AB 623 Requires the operator of an autonomous vehicle who is involved in an accident that results in 4/17/17 Assembly (Rodriguez) damage to the property of any one person in excess of $1,000, in bodily injury or in the death of a Appropriations Autonomous Vehicles: person to report the accident to the Department of Motor Vehicles (DMV) within 10 days of Committee Accidents occurrence. Requires a traffic collision report prepared by a California Highway Patrol (CHP) officer or by any other peace officer to specify if an autonomous vehicle was involved in the traffic collision in any manner. 2017-2018 Legislative Update Matrix

20.a State Assembly Subject Last Status VTA Bills Amended Position AB 636 Requires the report by a city or county regarding Highway Users Tax Account (HUTA) 3/28/17 Senate Rules (Irwin) expenditures for street/road purposes during the preceding fiscal year to be submitted to the Committee Local Streets/Roads: Controller’s Office within seven months of the close of the fiscal year, rather than by the first day Expenditure Reports of October, as is the case under current law. AB 673 Before the procurement of a new bus to be used in revenue service, requires a public transit agency 4/18/17 Assembly (Chu) to take into consideration the recommendations of, and the best practice standards developed by, Appropriations Public Transit Bus the labor organization representing the agency’s bus operators related to the following purposes: Committee Procurements: Safety (1) to reduce the risk of assaults on bus operators; (2) to prevent accidents caused by blind spots Considerations created by bus equipment or design; or (3) to enhance the safety of passengers, bus operators, or other vehicles or pedestrians that the bus may come into contact with while in service. AB 686 Requires a public agency to administer its programs and activities relating to housing and 4/27/17 Assembly (Santiago) community development in a manner to affirmatively further fair housing. Prohibits a public Appropriations Housing agency from taking any action that is inconsistent with this obligation. Provides that if a public Committee Discrimination agency fails to comply with its obligation to affirmatively further fair housing, then that failure would constitute a discriminatory housing practice under the California Fair Employment and Housing Act. Authorizes the Department of Fair Employment and Housing to exercise its discretion to investigate or to bring a civil action based on a verified compliant that alleges a violation of the obligation to affirmatively further fair housing. Defines “affirmatively further fair housing” to mean taking meaningful actions, in addition to combating discrimination, that: (1) overcome patterns of segregation; (2) address disparities in housings needs and in access to opportunity; (3) promote fair housing choice, both within and outside of areas of concentrated poverty; (4) foster inclusive communities free from barriers that restrict access to opportunity; and (5) transform racially and ethnically concentrated areas of poverty into areas of opportunity, while protecting existing residents from displacement. Defines “programs and activities relating to housing and community development” to mean any action, inaction, policy, regulation, program, practice, decision, activity, or investment by a public agency that affects where a person may live; a person’s ability to remain in their current housing; and the degree of access that person, based on where they live, has to opportunity, including education, jobs, health care, social services, and features of a healthy environment. Requires a public agency that completes or revises an assessment of fair housing pursuant to specified provisions of the federal Fair Housing Act to submit a copy of that assessment to the Department of Fair Employment and Housing. Requires any public agency that adopts a housing element or sustainable communities strategy to include in that element or strategy an analysis of barriers that restrict access to opportunity and a commitment to specific meaningful actions to affirmatively further fair housing.

2017-2018 Legislative Update Matrix

20.a State Assembly Subject Last Status VTA Bills Amended Position AB 694 Except under specified conditions, requires a person operating a bicycle to ride in the right-hand As Assembly (Ting) lane or bicycle lane, if one is present, rather than as close as practicable to the right-hand curb or Introduced Transportation Bicycles edge of the roadway, as is the case under current law. Requires a person operating a bicycle in a Committee right-hand lane that is wide enough for a vehicle and a bicycle to travel safety side by side within the lane to ride far enough to the right in order to allow vehicles to pass, except under any of the following situations: (1) when reasonably necessary to avoid conditions that make it hazardous to continue along the right-hand edge of the lane; or (2) when approaching a place where a right turn is authorized. AB 697 Exempts a private ambulance from any requirement to pay a toll or other charge on a vehicular As Senate Rules (Fong) crossing, toll highway or high-occupancy toll (HOT) lane, if the following conditions are met: (1) Introduced Committee Toll Facilities: the private ambulance is properly displaying a valid California license plate, and is properly Privately Owned identified or marked as a private ambulance; (2) the private ambulance is being driven while Emergency responding to or returning from an urgent or emergency call, engaged in an urgent or emergency Ambulances response, or engaging in a fire station coverage assignment directly related to an emergency response; and (3) the driver of the private ambulance determines that the use of the toll facility shall likely improve the availability or response and arrival time of the authorized emergency vehicle and its delivery of essential public safety services. AB 730 Eliminates the January 1, 2018, sunset date and makes permanent provisions in current law that As Senate Rules (Quirk) authorize the Bay Area Rapid Transit District (BART) to issue a prohibition order to any person Introduced Committee BART: Prohibition cited for committing certain acts on BART vehicles or at BART’s transit facilities, under which the Orders person would be prohibited from entering the property, facilities or vehicles of BART for a specified period of time. AB 733 Allows an enhanced infrastructure financing district to finance projects that enable communities to 3/23/17 Senate Rules (Berman) adapt to the impacts of climate change, including extreme weather events, sea level rise, flooding, Committee Enhanced heat waves, wildfires, and drought. Infrastructure Financing Districts: Climate Change Projects AB 758 Establishes the Tri-Valley-San Joaquin Valley Regional Rail Authority for purposes of planning 4/18/17 Assembly (Eggman) and developing a cost-effective and responsive connection between the Bay Area Rapid Transit Appropriations Tri-Valley-San District (BART) and the Altamont Commuter Express (ACE) in the Tri-Valley that meets the goals Committee Joaquin Valley and objectives of the community. Requires the governing board of the authority to be composed of Regional Rail 14 members, as specified. On an annual basis, requires the authority to post a project feasibility Authority report on its Internet Web site regarding the plans for the development and implementation of the connection. Requires the report, at a minimum, to include the proposed scope, schedule and cost of the connection. Requires the authority to be dissolved upon the completion of the connection.

2017-2018 Legislative Update Matrix

20.a State Assembly Subject Last Status VTA Bills Amended Position AB 765 Requires the election for a county, municipal or special district initiative measure that qualifies for As Assembly (Low) the ballot to be the next statewide election or the jurisdiction’s next regular election, as applicable, Introduced Elections & Local Initiative unless the governing body of the county, city or special district calls a special election. Redistricting Measures Committee AB 863 In selecting projects for cap-and-trade funding under the Affordable Housing and Sustainable As Assembly (Cervantes) Communities Program, requires the Strategic Growth Council to seek methods for the inclusion of Introduced Appropriations Affordable Housing local entrepreneurs in the implementation of the projects, and workforce training and certification Committee and Sustainable of workers hired to work on the projects. Communities Program AB 943 Provides that an ordinance or an amendment to an ordinance proposed by the voters that would 5/4/17 Assembly (Santiago) expressly stop development or construction within a city or county shall be enacted only if Elections & Land-Use Ordinances approved by at least 55 percent of the votes cast on the ordinance or amendment at an election. Redistricting Requires the county elections official for the city or county in which the proposed ordinance or Committee amendment to an ordinance would apply to determine whether it would expressly stop development or construction within the city or county. AB 964 Creates the California Affordable Clean Vehicle Program to be administered by the California 4/27/17 Assembly (Gomez) Pollution Control Financing Authority to assist low-income or high financial risk individuals in Appropriations California Affordable purchasing low-emission vehicles. Specifies that the program would cover potential losses of Committee Clean Vehicle participating lenders on loans issued to low-income and high-risk individuals to buy low-emission Program vehicles with a purchase price of up to $45,000. Requires the authority to adopt regulations to implement the program, subject to the approval of the California Air Resources Board (CARB). AB 965 In an action against Caltrans for personal injury, property damage or wrongful death based upon the 4/17/17 Assembly (Kiley) principles of comparative fault, specifies that the liability of the department for economic damages Judiciary Caltrans: Civil shall be several only and shall not be joint. Specifies that Caltrans shall be liable only for the Committee Liability amount of economic damages allocated to the department in direct proportion to its percentage of fault, and requires a separate judgment to be rendered against the department for that amount. Requires Caltrans to identify savings achieved through the implementation of the bill on an annual basis. From the identified savings, requires Caltrans to propose an appropriation to be included in the annual Budget Act for expenditure on highway maintenance, operation, rehabilitation, and improvement. AB 980 As part of each project located in a priority area, as defined, requires Caltrans to install a broadband As Assembly (Wood) conduit capable of supporting fiber optic communication cables. Introduced Communications Caltrans: Broadband & Conveyance Committee AB 1103 After slowing to a reasonable speed and yielding the right-of-way to any vehicle or pedestrian, 4/6/17 Assembly (Obernolte) allows a person operating a bicycle approaching a stop sign to cautiously make a turn or proceed Transportation Bicyclists: Rules of through the intersection without stopping, unless safety considerations require otherwise. If Committee the Road necessary for safety, requires the bicyclist to stop before entering the intersection, and allows him or her to proceed after yielding the right-of-way.

2017-2018 Legislative Update Matrix

20.a State Assembly Subject Last Status VTA Bills Amended Position AB 1113 Revises and recasts the provisions in current state law governing the State Transit Assistance 3/28/17 Senate Rules Support (Bloom) Program (STA). Clarifies the definition of STA-eligible transit operator for purposes of allocating Committee State Transit STA revenue-based funds. Clarifies that only transportation planning agencies, including county Assistance Program transportation commissions, can receive direct allocations of STA population-based and revenue- based funds from the Controller’s Office. Requires a transportation planning agency to allocate revenue-based funds only to STA-eligible transit operators within its jurisdiction. Requires the Controller’s Office to compute and publish the revenue-based shares that each STA-eligible transit operator in the state shall receive based on an operator’s qualifying revenues. Defines “qualifying revenues” to mean an STA-eligible transit operator’s fare revenues, including paratransit fare revenues, and other local funds used by the operator in the delivery of public transit service. Excludes the following from the definition of “qualifying revenues”: (1) state and federal operating funds; and (2) all funds used for capital expenditures or depreciation. Specifies that an STA- eligible transit operator’s revenue-based share cannot exceed its total annual operating expenses. Requires the amount of revenue-based funds allocated by the Controller’s Office to a transportation planning agency to be based on the ratio that the total qualifying revenues of all STA-eligible transit operators within the jurisdiction of the transportation planning agency bears to the total qualifying revenues of all STA-eligible transit operators in the state. Requires the amount of revenue-based funds allocated by a transportation planning agency to each STA-eligible transit operators within its jurisdiction to be based on the ratio that an operator’s qualifying revenues bears to the total qualifying revenues of all STA-eligible transit operators within the transportation planning agency’s jurisdiction. Before a public transit operator submits its audited financial statements to the Controller’s Office for purposes of receiving STA funding, requires the applicable transportation planning agency to verify that the operator has correctly reported that it is an eligible claimant for STA dollars. AB 1141 By September 30, 2018, requires the Department of Motor Vehicles (DMV) to adopt regulations 4/17/17 Assembly (Berman) setting forth standards for the testing of autonomous vehicles used to transport freight. In Communications Autonomous Freight developing these regulations, requires the DMV to consult with Caltrans and the California & Conveyance Vehicles Highway Patrol (CHP) on related topics, including appropriate routes for autonomous freight Committee vehicles, and compliance with federal and state requirements for commercial drivers. Requires an autonomous freight vehicle to have a person in the driver’s seat at all times while being operated.

2017-2018 Legislative Update Matrix

20.a State Assembly Subject Last Status VTA Bills Amended Position AB 1145 Unless otherwise prohibited by law or expressly governed by a contract in force as of January 1, 5/1/17 Assembly (Quirk) 2018, requires the state or a local government with appropriate jurisdiction to reimburse a utility for Appropriations Utility Relocation the reasonable costs incurred by the utility to relocate its facilities if: (1) the state or local Committee Costs government directs the utility to relocate its facilities from an easement of right-of-way granted by the state or local government; and (2) the relocation is for a construction project financed from any voter-approved bond act of the state or local government, respectively. Requires the state or local government to make the reimbursement only if it determines, after consultation with the utility and holding public hearings on the subject, that the relocation is in the general public interest for at least one of the following reasons: (1) the relocation avoids or eliminates an unusually heavy concentration of overhead electric or communication facilities; (2) the existing right-of-way involves a street or road with a high volume of pedestrian or vehicular traffic; (3) the relocation benefits a civic area, public recreation area, or area of unusual scenic interest; (4) the relocation is necessary to accommodate a state or local capital infrastructure project; (5) the relocation is necessary for public safety; or (6) the existing right-of-way involves a street or road that is considered an arterial street or major collector. Requires the state or local government to make the reimbursement only if the utility has applied to recover those relocation costs through all other applicable regulatory processes and those applications have been denied. AB 1218 Extends until January 1, 2021, the following two exemptions from the requirements of the 4/18/17 Senate Rules (Obernolte) California Environmental Quality Act (CEQA): (1) a bicycle transportation plan prepared for an Committee CEQA: Bicycle urbanized area for the restriping of streets/highways, bicycle parking and storage, signal timing to Transportation Plans improve street/highway intersection operations, and related signage for bicyclists, pedestrians and and Projects vehicles; and (2) a project that consists of restriping streets/highways for bicycle lanes in an urbanized area that is consistent with the area’s bicycle transportation plan.

2017-2018 Legislative Update Matrix

20.a State Assembly Subject Last Status VTA Bills Amended Position AB 1233 Creates the Office of the Transportation Inspector General to ensure that Caltrans, the California As Assembly (Cunningham) High-Speed Rail Authority and all other state agencies expending state transportation funds are Introduced Transportation Office of the operating efficiently, effectively, and in compliance with federal and state laws. Requires the Committee Transportation Office of the Transportation Inspector General to review policies, practices and procedures, and to Inspector General conduct audits and investigations of activities involving state transportation funds in consultation with affected state agencies. Requires the duties and responsibilities of the Office of the Transportation Inspector General to include all of the following: (1) examining the operating practices of all state agencies expending state transportation funds to identify fraud and waste, opportunities for efficiencies, and opportunities to improve the data used to determine appropriate project resource allocations; (2) identifying best practices in the delivery of transportation projects, and developing policies or recommending proposed legislation to enable state agencies to adopt these practices; (3) providing objective analysis of, and offering solutions to, concerns raised by the public or generated within agencies involving the state’s transportation infrastructure and project delivery methods; (4) conducting, supervising and coordinating audits and investigations relating to the programs and operations of all state agencies with state-funded transportation projects; (5) recommending policies promoting economy and efficiency in the administration of programs and operations of all state agencies with state-funded transportation projects; and (6) ensuring that the California State Transportation Agency and the Legislature are fully and currently informed concerning fraud, or other serious abuses or deficiencies relating to the expenditure of funds, or the administration of programs and operations. Requires the Office of the Transportation Inspector General to provide a summary of its findings, investigations and audits at least annually to the Governor and Legislature. Requires this summary to include significant problems discovered by the Office of the Transportation Inspector General, and whether its recommendations relating to its investigations and audits have been implemented by the affected agencies. AB 1259 Expands the existing Capital Access Loan Program under the California Pollution Control 4/27/17 Assembly (Calderon) Financing Authority to include the purchase of an electric vehicle by low- and middle-income Appropriations Capital Access Loan consumers and families. Committee Program: Electric Vehicles

2017-2018 Legislative Update Matrix

20.a State Assembly Subject Last Status VTA Bills Amended Position AB 1282 By April 1, 2018, requires the California State Transportation Agency (CalSTA), in consultation 4/4/17 Assembly (Mullin) with the Natural Resources Agency, to establish a Transportation Permitting Task Force consisting Appropriations Transportation of representatives from specified state agencies and departments. Requires the task force to Committee Permitting Task Force develop a process for early engagement of all parties in the development of transportation projects to reduce permit processing times, to establish reasonable deadlines for permit approvals, and to provide for greater certainty of permit approval requirements. By December 1, 2018, requires CalSTA to prepare and submit to the Legislature a report of findings based on the efforts of the task force. Requires this report to include a detailed analysis of the following: (1) the existing permitting process for transportation projects in California, including a discussion of the points in the process where delays are most likely to occur; (2) the utilization of existing positions in the various state resources agencies currently supported by transportation funds, including an analysis of the benefits of those positions to the state’s transportation programs relative to their costs; (3) the early engagement process developed by the task force; (4) resource levels needed to implement the task force’s early engagement process; and (5) legislative or regulatory issues, if any, that need to be address to implement the task force’s early engagement process. Sunsets the provisions of the bill on December 1, 2022. AB 1301 Requires the Joint Legislative Committee on Climate Change Policies to do all of the following: 3/22/17 Assembly (Fong) (1) evaluate the actions that California, other states and foreign nations are taking to reduce Natural Joint Legislative greenhouse gas emissions, and quantify those reductions from those jurisdictions over the prior Resources Committee on Climate year; (2) evaluate the impact that California’s climate policies have had on the price of Committee Change Policies transportation fuels, electricity and other commodities identified by the joint committee; (3) recommend to the Legislature how to prioritize the allocation of cap-and-trade auction proceeds in the Greenhouse Gas Reduction Fund in order to achieve the greatest reductions of greenhouse gas emissions for each dollar spent; and (4) track changes in the cost effectiveness of clean technologies based on the amount of emissions avoided. Requires the California Air Resources Board (CARB) to annually report to the joint committee the greenhouse gas emissions reduction measures identified in the board’s Scoping Plan that are being implemented or considered. AB 1324 Allows a metropolitan planning organization (MPO) or regional transportation planning agency 3/20/17 Assembly Local (Gloria) (RTPA) that has sales taxing authority under current law to levy, expand, increase, or extend such a Government Metropolitan Planning tax in a portion of its area of jurisdiction, rather than in its entire area of jurisdiction, provided that Committee Organizations: Sales the tax is approved by the required percentage of voters in that portion of its area of jurisdiction Taxes who vote on the measure. Requires the revenues derived from the tax to be used only within that portion of the MPO’s or RTPA’s area of jurisdiction. AB 1333 Requires a local government agency to post on its Internet Web site a notice of any upcoming As Assembly (Dababneh) election in which the voters will consider a tax measure or proposed bond issuance of the agency. Introduced Appropriations Local Government Requires this notice to be posted within seven days of either the governing body of the agency Committee Agency Notices voting to place the tax measure or bond issuance on the ballot, or the tax measure or bond issuance qualifying to be placed on the ballot as an initiative measure. Requires the notice to include the date of the election at which the tax measure or bond issuance will be voted on, and a brief common language description of the tax measure or bond issuance. Requires the local government agency to publish a similar notice in its electronic newsletter.

2017-2018 Legislative Update Matrix

20.a State Assembly Subject Last Status VTA Bills Amended Position AB 1363 Beginning July 1, 2018, eliminates the annual transfer of so-called Non-Article 19 revenues As Assembly (Baker) obtained by Caltrans through the rental or sale of property, the sale of documents, and charges for Introduced Transportation Non-Article 19 other miscellaneous services provided to the public to the General Fund, and, instead, retains these Committee Transportation revenues in the State Highway Account for transportation purposes. Revenues AB 1383 Prior to adopting a regulation to reduce greenhouse gas emissions pursuant to the Global Warming As Assembly (Fong) Solutions Act, requires the California Air Resources Board (CARB) to do all of the following: (1) Introduced Natural Greenhouse Gas work with stakeholders to identify and address technical, market, regulatory, and other challenges Resources Emissions Regulations and barriers in implementing the regulation; (2) provide a forum for public engagement by holding Committee at least three public meetings in geographically diverse locations throughout the state; (3) make a finding that the regulation is technologically and economically feasible, is cost effective, and includes mechanisms to minimize and mitigate potential leakage to other states and countries; and (4) evaluate existing achievements made by incentive-based programs. Within two years of adopting a regulation pursuant to the Global Warming Solutions Act, requires CARB to both of the following: (1) determine if sufficient progress has been made to overcome any technical, market or regulatory challenges or barriers that were previously identified; and (2) evaluate whether there are any other challenges or barriers that have arisen. Requires CARB to revise the regulation, as needed, based on the findings of this review. AB 1395 By January 1, 2019, requires Caltrans to develop a uniform financial plan to remediate debris to 3/30/17 Assembly (Chu) maintain and preserve the state highway system. Requires the uniform financial plan to include Transportation State Highways: recommendations that allow a municipality to carry out obligations specified in the plan with Committee Debris reimbursement provided by the state. AB 1404 Expands the application of an existing category exemption under the California Environmental 4/17/17 Assembly (Berman) Quality Act (CEQA) for infill development projects within cities to also include proposed infill Appropriations CEQA: Categorical development projects occurring in an unincorporated area of a county on a project site of no more Committee Exemption for Infill than five acres that is substantially surrounded by urban uses. Requires the Office of Planning & Development Research to recommend regulatory amendments to implement the provisions of this bill. Requires the Natural Resources Agency to certify and adopt these amendments by January 1, 2019. AB 1421 Requires the Department of Public Health to conduct a study to determine the noise and vibration 3/22/17 Assembly (Dababneh) levels associated with all railroad lines in the vicinity of residential areas or schools. Appropriations Railroads: Noise and Committee Vibration

2017-2018 Legislative Update Matrix

20.a State Assembly Subject Last Status VTA Bills Amended Position AB 1442 Specifies that no further bonds shall be sold for high-speed rail purposes pursuant to the Safe, 3/28/17 Assembly (T. Allen) Reliable High-Speed Passenger Train Bond Act for the 21st Century (Proposition 1A), except as Transportation High-Speed Rail: specifically provided with respect to an existing appropriation for early improvement projects Committee Bond Funding related to the Phase I blended system. Upon appropriation by the Legislature, requires the unspent proceeds received from outstanding bonds issued and sold for high-speed rail purposes prior to the effective date of the provisions of this bill to be redirected to retiring the debt incurred from the issuance and sale of those outstanding bonds. Allows the remaining unissued bonds, as of the effective date of the provisions of this bill, that were authorized for high-speed rail purposes to be issued and sold. Upon appropriation by the Legislature, requires the net proceeds from the sale of these remaining unissued bonds to be made available to fund the construction of water capital projects that are part of the State Water Resources Development System, including the construction of desalination facilities, wastewater treatment and recycling facilities, reservoirs, water conveyance infrastructure, and aquifer recharge. Specifies that the provisions of the bill would become effective only upon approval by the voters at the next statewide election. AB 1444 Authorizes the Livermore Amador Valley Transit Authority (LAVTA) to conduct a shared 5/2/17 Assembly (Baker) autonomous vehicle demonstration project for the testing of autonomous vehicles that do not have a Appropriations LAVTA: driver seated in the driver’s seat, and that are not equipped with a steering wheel, a brake pedal or Committee Autonomous Vehicles an accelerator, provided that the following requirements are met: (1) the testing is conducted only Demonstration Project within the city of Dublin; (2) the vehicles may traverse public roads within the area of the demonstration project; and (3) the vehicles operate at speeds of less than 35 miles per hour. Prior to the start of testing of any autonomous vehicles pursuant to this bill, requires LAVTA, or a private entity, or a combination of the two to do both of the following: (1) obtain an instrument of insurance, surety bond or proof of self-insurance in an amount of $5 million; and (2) submit a detailed description of the testing program to the Department of Motor Vehicles (DMV). Requires the operator of the autonomous vehicle technology being tested to disclose to an individual participating in the demonstration project what personal information, if any, concerning the individual will be collected by the autonomous vehicle. For the testing of autonomous vehicles within the designated area of the city of Dublin, allows the DMV to require data collection for evaluating the safety of the vehicles. Specifies that the bill does not limit the authority of the DMV to promulgate regulations governing the testing and operation of autonomous vehicles on public roads, with or without the presence of a driver inside the vehicle. Requires LAVTA to comply with any regulations regarding the testing of autonomous vehicles promulgated by the DMV. Specifies that the provisions of the bill become inoperative on May 1, 2018. AB 1452 Authorizes a local jurisdiction, by ordinance or resolution, to dedicate on-street parking spaces for As Senate Rules (Muratsuchi) the exclusive use of electric vehicles while they are charging, provided that appropriate signage is Introduced Committee Parking for Electric installed. Vehicle Charging AB 1454 Declares the intent of the Legislature to re-establish the authority under state law to engage in 5/1/17 Senate Rules (Bloom) public-private partnerships for projects on the state highway system with appropriate public interest Committee Public-Private and safety protections. Partnerships

2017-2018 Legislative Update Matrix

20.a State Assembly Subject Last Status VTA Bills Amended Position AB 1470 With respect to a project completed on or after January 1, 2014, that consists of relocating a state As Assembly (Wood) highway in order to bypass a city or business district, provides that the affected city or county shall Introduced Transportation State Highway be eligible to receive funding from an unspecified account for purposes of revitalizing the city or Committee Bypasses business district due to the loss of tourism resulting from the project. AB 1489 Provides that a licensed architect is not responsible for damage caused by construction deviating As Assembly (Brough) from a permitted set of plans, specifications, reports, or documents. Introduced Business & Architects Practice Act Professions Committee AB 1509 Requires the Bay Area Rapid Transit District (BART) to maintain its existing commitment of funds 4/6/17 Assembly (Baker) for the acquisition, construction or completion of rapid transit facilities. Following the approval of Appropriations BART: Rapid Transit Measure RR at the November 8, 2016, election, prohibits BART from redirecting any existing Committee Facilities funds dedicated for system infrastructure capital improvements or rolling stock to cover operating expenses. In any fiscal year in which BART spends Measure RR revenues, requires BART to expend from other revenue sources an amount not less than the annual average of its expenditures on acquisition, construction or completion of rapid transit facilities during FY 2014, FY 2015 and FY 2016. Authorizes the Controller’s Office to perform audits to ensure BART’s compliance with the provisions of this bill. AB 1523 Authorizes a city or county to use design-build contracting for a local street/road project. 5/1/17 Assembly (Obernolte) Authorizes a transit district, county transportation commission, or any other local or regional Appropriations Design-Build agency responsible for the construction of public transit or transportation projects to use design- Committee Contracting build contracting for either a public transit capital project or a local street/road project. AB 1561 Allows two or more local agencies to establish an authority under the state’s joint powers law for 3/20/17 Assembly Local (Quirk-Silva) the purpose of financing port infrastructure. Government Port Infrastructure Committee AB 1579 For purposes of implementing the California Environmental Quality Act (CEQA), requires the 4/3/17 Assembly (Daly) Office of Planning & Research to establish and maintain a vehicle miles traveled database Natural CEQA: Vehicle Miles containing methodological guidance on which models should be used for particular types of Resources Traveled Database projects and the best sources of trip-length data for various land-use types. Committee AB 1613 Authorizes the San Mateo County Transit District (SamTrans) to impose a retail transactions and 4/19/17 Assembly Floor (Mullin) use tax that would exceed the 2 percent maximum combined rate for all local option transactions Retail Transactions and use taxes that could be imposed in San Mateo County if the following conditions are met: (1) and Use Tax: the tax is set at a rate of no more than 0.5 percent; (2) the SamTrans Board of Directors adopts the SamTrans ordinance approving the tax before January 1, 2021; and (3) the county of San Mateo has not already imposed a similar tax. AB 1628 Declares the intent of the Legislature to enact a bill to prohibit the use of independent contractors As Assembly Desk (Grayson) on public works projects. Introduced Public Works Projects: Independent Contractors 2017-2018 Legislative Update Matrix

20.a State Assembly Subject Last Status VTA Bills Amended Position AB 1630 Requires Caltrans, in coordination with the Department of Fish & Wildlife, to prepare a report 4/17/17 Assembly (Bloom) describing the status of Caltrans’ progress in locating, assessing and remediating existing barriers to Transportation Wildlife Movement wildlife connectivity. Requires this report to be submitted to the Legislature by October 31 every Committee three years through 2030. Authorizes the Department of Fish & Wildlife or Caltrans to pursue the development of a programmatic environmental review process with appropriate state and federal regulatory agencies for wildlife connectivity-related transportation infrastructure. By January 1, 2019, requires the Department of Fish & Wildlife, in coordination with Caltrans and the California State Transportation Agency (CalSTA), to do both of the following: (1) update the California Essential Habitat Connectivity Project with new, best available data on wildlife movements; and (2) create a formal avenue for scientific data on wildlife movements gathered by universities, nonprofit corporations, public agencies, and independent biologists to be submitted to those three agencies. By January 1, 2020, requires Caltrans to update the Highway Design Manual to address features to mitigate barriers to wildlife passage and improve wildlife connectivity, using the best available science to determine the placement and design of wildlife passage features. AB 1640 Beginning January 1, 2020, requires a regional transportation improvement program (RTIP) to As Assembly (E. Garcia) allocate a minimum of 25 percent of available State Transportation Improvement Program (STIP) Introduced Transportation Regional funds to projects or programs that provide direct, meaningful and assured benefits to: (1) low- Committee Transportation income individuals who live in certain identified communities; or (2) riders of public transit Improvement service, of which at least 65 percent of its ridership is composed of low-income riders, that Programs connects low-income residents to critical amenities and services. Through an inclusive and transparent public process, and in consultation with the California Air Resources Board (CARB), the Strategic Growth Council and the Department of Public Health, requires Caltrans to adopt guidelines for the allocation of RTIP funds pursuant to the provisions of this bill no later than June 30, 2018. Requires these guidelines to do all of the following: (1) define and map urban and rural low-income communities in California that are disadvantaged with respect to transportation; (2) identify communities that would benefit from the allocation requirements of the bill; and (3) specify criteria for determining whether investments in transportation projects and programs benefit low-income residents of the communities identified by the department. In identifying communities, requires Caltrans to use the following factors: (1) inadequate access to high quality public transit; (2) lack of sidewalks, crossing facilities or bicycle infrastructure; (3) low rates of automobile ownership; (4) proximity to a freeway, major arterial or goods movement corridor; (5) lack of shelters, benches or pedestrian lighting at public transit stops, employment centers, schools, medical facilities, grocery stores, and other community services; (6) risk of physical or economic displacement; and (7) health and air pollution impacts of the transportation system. Requires congestion management agencies (CMAs) and regional transportation planning agencies (RTPAs) to report to Caltrans information regarding the transportation project and program benefits provided to disadvantaged community residents. Upon appropriation by the Legislature, requires Caltrans to provide financial support to low-income residents of disadvantaged communities for all of the following purposes: (1) to assist those residents in engaging in the development of the guidelines for the allocation of RTIP funds; (2) to provide those residents with planning support and other technical assistance in identifying their priorities for local projects and programs that meet their needs by reducing their disadvantage with respect to transportation; and (3) to provide those residents with support in developing and implementing a participatory budget process. 2017-2018 Legislative Update Matrix

20.a State Assembly Subject Last Status VTA Bills Amended Position ACA 4 Calls for placing before the voters an amendment to the California Constitution to allow a city or As Assembly Local (Aguiar-Curry) county to incur indebtedness in the form of general obligation bonds, if approved by its electorate Introduced Government Local Government by a 55 percent majority, to fund the construction, reconstruction, rehabilitation, or replacement of Committee Financing: Voter public infrastructure or affordable housing, or the acquisition or lease of real property for those Approval purposes. Creates an exception to the 1 percent limit for property tax assessments if the revenues are being used to pay bonded indebtedness, approved by a 55 percent majority vote, to fund the construction, reconstruction, rehabilitation, or replacement of public infrastructure or affordable housing, or the acquisition or lease of real property for those purposes. Allows a local government to impose, extend or increase a special tax, if approved by its electorate by a 55 percent majority, to fund the construction, reconstruction, rehabilitation, or replacement of public infrastructure or affordable housing, or the acquisition or lease of real property for those purposes. Defines “public infrastructure” to include projects that provide any of the following: (1) water or protect water quality; (2) sanitary sewer; (3) treatment of wastewater or reduction of pollution from stormwater runoff; (4) protection of property from the impacts of sea level rise; (5) parks; (6) open space and recreation facilities; (7) improvements to public transit, and streets/highways; (8) flood control; (9) broadband expansion in underserved areas; or (10) local hospital construction. ACA 5 Calls for placing before the voters an amendment to the California Constitution to exempt 4/4/17 Passed by the (Frazier) appropriations of revenues from the Road Maintenance and Rehabilitation Account that is proposed Legislature. To Motor Vehicle Fees to be created pursuant to SB 1 (Beall) from counting toward the state appropriation limit (Gann be placed on the and Taxes: Limit). Requires all revenues derived from the state sales tax on diesel fuel to be deposited into the June 2018 ballot Restrictions on Public Transportation Account (PTA) and used exclusively for mass transportation purposes. Expenditures Prohibits the Legislature from taking any action that would temporarily or permanently divert or appropriate these PTA revenues for non-mass transportation purposes; or that would delay, defer, suspend, or otherwise interrupt the quarterly deposit of these revenues into the PTA. Requires the revenues derived from the new transportation improvement fee that would be imposed by SB 1 to be used solely for transportation purposes. Prohibits transportation improvement fee revenues from being used to pay the principal or interest on state transportation general obligation bonds that were authorized by the voters prior to November 8, 2016. Prohibits the use of these revenues to pay the principal or interest on any state transportation general obligation bond acts approved by the voters after November 8, 2016, unless the bond act expressly authorizes that use. Prohibits the Legislature from borrowing or using transportation improvement fee revenues for purposes other than those authorized in SB 1. ACA 9 Calls for placing before the voters an amendment to the California Constitution to require the As Assembly Desk (Obernolte) annual Budget Act to be passed by the Legislature and enacted as a statute by midnight of June 15 Introduced Budget Trailer Bills of each year. Requires bills that provide for appropriations relating to, or that are necessary to implement, the Budget Act to be passed by the Legislature and enacted as statutes by midnight on June 30 of each year. If the Budget Act or a budget trailer bill is not enacted by the applicable deadline, prohibits the Budget Act or trailer bill from taking effect with a majority vote, thereby requiring it to be passed by a two-thirds vote of the Legislature. If the Budget Act is not enacted by the applicable deadline, prohibits an appropriation for the salary and benefits of members of the Legislature and the Governor from midnight on June 15 until the Budget Act is enacted.

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StateB Senate Bills State Senate Bills Subject Last Status VTA Amended Position SB 1 Creates the Road Maintenance and Rehabilitation Account to be funded from the following sources: 4/3/17 Signed into Law: Support (Beall) (1) an increase in the gasoline excise tax of 12 cents per gallon, which would be indexed to inflation Chapter #5 Transportation every year; (2) 50 percent of the revenues derived from an increase in the diesel excise tax of 20 cents Funding per gallon, which would be indexed to inflation annually; (3) a portion of the revenues derived from a new transportation improvement fee that would be assessed per year based on a vehicle’s market value and indexed to inflation on an annual basis; and (4) a registration surcharge of $100 per year imposed on zero-emission vehicles model year 2020 or later starting with the second year of ownership, which would be indexed to inflation every year. Distributes the revenues deposited into the Road Maintenance and Rehabilitation Account in the following manner: (1) $200 million per year would be allocated to local jurisdictions that have sought and gained voter approval of a local transportation special tax, or that have imposed uniform developer or other fees solely for transportation improvements; (2) $100 million per year would be distributed to the Active Transportation Program; (3) $400 million per year would be allocated to Caltrans for maintenance and rehabilitation of bridges and culverts on the state highway system; (4) $25 million per year would be distributed to support Freeway Service Patrols throughout the state; (5) for FY 2018 through FY 2022, $5 million per year would be allocated to the California Workforce Development Board to assist local agencies in implementing policies to promote pre-apprenticeship training programs; (6) $25 million per year would be allocated to Caltrans for local and regional planning grants; (7) $5 million and $2 million per year would be distributed to the University of California and the California State University systems, respectively, to conduct transportation research, as well as to fund transportation-related workforce education, training and development activities; (8) 50 percent of the amount remaining would be allocated to Caltrans for maintenance of the state highway system, and for projects programmed in the State Highway Operation and Protection Program (SHOPP); and (9) 50 percent of the amount remaining would be provided to cities and counties for their local roadway systems. Provides new funding for public transit through the following sources: (1) an increase in the diesel sales tax by a rate of 3.5 percent for the State Transit Assistance Program (STA); (2) an increase in the diesel sales tax by a rate of 0.5 percent for commuter and intercity rail; and (3) $350 million per year (adjusted annually for inflation) from the revenues generated by the new transportation improvement fee to be split 70 percent to the Transit and Intercity Rail Capital Program ($245 million), and 30 percent to STA ($105 million) for public transit state-of-good-repair capital expenditures. Allocates half of the revenues derived from the 20-cent increase in the diesel excise tax to a new Trade Corridor Enhancement Fund for corridor-based freight projects nominated by local agencies and the state. Creates a new competitive Solutions for Congested Corridors Program to fund projects related to implementing a balanced set of transportation, environmental and community access improvements along highly congested travel corridors pursuant to a corridor plan. Provides $250 million per year from the revenues derived from the new transportation improvement fee for this program.

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State Senate Bills Subject Last Status VTA Amended Position SB 2 Enacts the Building Homes and Jobs Act. Beginning January 1, 2018, imposes a fee of $75 to be paid 3/23/17 Senate (Atkins) at the time of recording of every real estate instrument, paper or notice required or permitted by law to Appropriations Building Homes and be recorded per each single transaction per single parcel of real property. Specifies that this fee shall Committee Jobs Act not exceed $225. Prohibits the fee from being imposed on any real estate instrument, paper or notice recorded in connection with a transfer of real property that is a residential dwelling to an owner- occupier. Deposits the revenues derived from the fee in the Building Homes and Jobs Trust Fund for expenditure by the Department of Housing & Community Development. Requires the money in the Trust fund to be appropriated through the annual Budget Act. Upon appropriation by the Legislature, requires 20 percent of the revenues in the trust fund to be expended for affordable owner-occupied workforce housing, and 10 percent to address affordable homeownership and rental housing opportunities for agricultural workers and their families. Requires the remainder of the money in the trust fund to be expended for the following purposes: (1) the development, acquisition, rehabilitation, and preservation of rental housing that is affordable to extremely low-income, very low-income, low- income, and moderate-income households; (2) affordable rental and ownership housing that meets the needs of a growing workforce up to 120 percent of area median income; (3) matching portions of funds placed into local or regional housing trust funds; (4) matching portions of funds available through the Low and Moderate Income Housing Asset Fund; (5) capitalized reserves for services connected to the creation of new permanent supportive housing, including developments funded through the Veterans Housing and Homelessness Prevention Bond Act of 2014; (6) emergency shelters, transitional housing and rapid rehousing; (7) accessibility modifications; (8) efforts to acquire and rehabilitate foreclosed or vacant homes; (9) homeownership opportunities, including downpayment assistance; (10) grants to local and regional agencies to assist in the development and updating of planning documents and zoning ordinances in order to accelerate housing production; and (11) fiscal incentives as matching funds to local agencies that approve new housing for extremely low-income, very low-income, low- income, and moderate-income households. At the time of the Department of Finance’s adjustments to the proposed FY 2019 budget, requires the Department of Housing & Community Development to submit to the Legislature an initial Building Homes and Jobs Investment Strategy. Beginning with FY 2024, and every five years thereafter, requires the department to update this investment strategy and submit it to the Legislature concurrent with the release of the Governor’s proposed budget. Requires the investment strategy to do all of the following: (1) identify the statewide needs, goals, objectives, and outcomes for housing for a five-year period; (2) provide for a geographically balanced distribution of funds, including a 50 percent direct allocation to local governments; (3) emphasize investments that serve households that are at or below 60 percent of area median income; (4) encourage economic development and job creation by helping to meet the housing needs of a growing workforce up to 120 percent of area median income; (5) identify opportunities for coordination among state departments and agencies; (6) incentivize the use and coordination of non-traditional funding sources; and (7) incentivize innovative approaches that produce cost savings to local and state services by reducing the instability of housing for frequent, high-cost users of hospitals, jails, detoxification facilities, psychiatric hospitals, and emergency shelters. Requires expenditure requests in the Governor’s proposed budget to be consistent with the Building Housing and Jobs Investment Strategy.

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State Senate Bills Subject Last Status VTA Amended Position SB 3 Calls for submitting the Affordable Housing Bond Act of 2018 to the voters at the November 6, 2018, 3/28/17 Senate (Beall) statewide general election, which authorizes the issuance of $3 billion in general obligation bonds to Appropriations Affordable Housing fund various programs related to housing. If approved by the voters, requires the proceeds from the Committee Bond Act of 2018 issuance of the bonds to be allocated in the following manner: (1) $1.5 billion to construct, rehabilitate and preserve permanent and transitional rental housing for persons with incomes of up to 60 percent of the area median income; (2) $200 million to provide assistance to cities, counties, public transit agencies, and developers for the purpose of developing or facilitating higher density uses within close proximity to transit stations that will increase public transit ridership; (3) $300 million for infill incentive grants to assist in constructing and rehabilitating infrastructure that supports high-density affordable and mixed-income housing in locations designated as infill; (4) $100 million for grants to qualifying cities and counties to be used for downpayment assistance to qualifying first-time homebuyers, or low-income and moderate-income buyers purchasing newly constructed homes in a Building Equity and Growth in Neighborhoods (BEGIN) project; (5) $300 million for grants or loans for local public entities, non-profit corporations, limited liability companies, and limited partnerships for constructing or rehabilitating housing for agricultural employees and their families, or for acquiring manufactured housing as part of a program to address and remedy the impacts of current and potential displacement of farmworker families from existing labor camps, mobilehome parks or other housing; (6) $300 million for competitive grants or loans to local housing trust funds that develop, own, lend, or invest in affordable housing to assist in creating pilot programs to demonstrate innovative, cost-saving approaches to building or preserving affordable housing; and (7) $300 million for the CalHome Program to provide direct, forgivable loans to assist development projects involving multiple homeownership units.

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State Senate Bills Subject Last Status VTA Amended Position SB 4 Subject to voter approval, enacts the Goods Movement and Clean Trucks Bond Act to authorize the 4/26/17 Senate (Mendoza) issuance of $600 million in state general obligation bonds for the following purposes: (1) $200 million Appropriations Goods Movement to the California Transportation Commission (CTC) for projects and programs eligible for funding from Committee the Trade Corridors Improvement Fund (TCIF); (2) $200 million to the California Air Resources Board (CARB) for projects and programs consistent with the Goods Movement Emission Reduction Program; and (3) $200 million to CARB for projects and programs to expand the use of zero- and near- zero emission trucks in areas of the state that are designated as severe or extreme nonattainment areas for ozone and particulate matter. Requires revenues apportioned to California from the National Highway Freight Program established by the federal Fixing America’s Surface Transportation (FAST) Act to be deposited into the TCIF and allocated by the CTC for projects pursuant to the statutes governing the TCIF. In prioritizing projects for TCIF funding, requires the CTC to consult the California Sustainable Freight Action Plan released in July 2016 pursuant to a gubernatorial executive order. Requires projects eligible for TCIF funding to further the state’s economic, environmental and public health objectives and goals for freight policy. In evaluating the program of projects to be funded from the TCIF, requires the CTC to evaluate the total potential economic and non-economic benefits of the program of projects to California’s economy, environment and public health. Requires the CTC to allocate the revenues apportioned to California from the formula-based National Highway Freight Program in the following manner: (1) $150 million dedicated exclusively to fund improvements to California’s existing or planned land ports of entry on the border with Mexico; (2) $70 million dedicated exclusively to fund projects for the elimination, alteration or improvement of hazardous railroad-highway grade crossings; and (3) $360 million for projects nominated by regional transportation agencies and other public entities, in consultation with Caltrans, consistent with the corridor-based programming targets contained in the TCIF Guidelines. Requires the CTC to proportionately adjust these amounts if the funding received by California from the National Highway Freight Program is less than or greater than $580 million. Requires the CTC to amend the current TCIF Guidelines to allocate funding in a manner that: (1) addresses the state’s most urgent needs; (2) balances the demands of various land ports of entry, seaports and airports; (3) provides reasonable geographic balance between the state’s regions; (4) places an emphasis on projects that improve trade corridor mobility and safety, while reducing emissions of diesel particulates, greenhouse gases and other pollutants, and reducing other negative community impacts; and (5) makes a significant contribution to the state’s economy. In adopting amended guidelines, and in developing and adopting the program of projects for TCIF funding, requires the CTC to do all of the following: (1) accept nominations for projects to be included in the program of projects from regional and local transportation agencies, and from Caltrans; (2) recognize the key role of the state in project identification and support integrating statewide goods movement priorities into the corridor approach; and (3) give the highest priority for funding allocations to projects jointly nominated by Caltrans and a regional or other public agency.

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State Senate Bills Subject Last Status VTA Amended Position SB 19 Among other things, makes legislative findings and declarations relative to the administration working 3/14/17 Senate (Hill) with the California Public Utilities Commission (CPUC) to develop a reorganization plan to transfer Appropriations California Public those duties and responsibilities of the commission over transportation-related entities that would be Committee Utilities better performed by departments within the California State Transportation Agency (CalSTA). By Commission: February 1 of each year, requires CalSTA to report to the Governor and the relevant committees of the Duties, Legislature statistical information regarding application, permit and enforcement activities undertaken Responsibilities and by the agency in carrying out the duties and responsibilities transferred to the agency from the CPUC. Governance SB 20 Requires a passenger in a bus equipped with seatbelts to be properly restrained by a belt, except in the 4/6/17 Assembly Desk (Hill) case where the passenger is out of his or her seat to use an onboard bathroom. Specifies that a violation Buses: Seatbelts of this seatbelt requirement is an infraction punishable by a fine of not more than $20 for the first offense, and a fine of not more than $50 for each subsequent offense. Requires a motor carrier operating a bus equipped with seatbelts to maintain the belts in good working order for the use of passengers of the vehicle. Requires a motor carrier operating a bus equipped with seatbelts to do one of the following: (1) require the bus driver, before departure, to inform passengers of the requirement to wear the belt under California law and that not wearing the belt is punishable by a fine; or (2) post signs or placards informing passengers of the requirement. Specifies that the aforementioned provisions of the bill do not apply to school buses. If a bus is equipped with a driver seatbelt, prohibits the driver from operating the bus unless he or she is properly restrained by the belt. Specifies that a violation of this requirement is an infraction punishable by a fine of not more than $20 for the first offense, and a fine of not more than $50 for each subsequent offense. Requires the motor carrier operating a bus with a driver seatbelt to maintain the belt in good working order for the use of the driver. Requires a charter bus company to ensure that a driver of a vehicle designed to carry 39 or more passengers does both of the following: (1) instructs or plays a video for all passenger regarding the safety equipment and emergency exists on the vehicle prior to the beginning of any trip; and (2) provides each passenger with written or video instructions that include, at a minimum, a demonstration of the location and operation of all exits, the requirement to wear a seatbelt, if available, and that not wearing the belt is punishable by a fine.

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State Senate Bills Subject Last Status VTA Amended Position SB 21 By July 1, 2018, requires a public agency that uses or accesses information from surveillance 5/3/17 Senate (Hill) technologies to submit to its governing body for adoption a Surveillance Use Policy to ensure that the Appropriations Surveillance collection, use, maintenance, sharing, and dissemination of information or data is consistent with Committee Technologies respect for individuals’ privacy and civil liberties. If a Surveillance Use Policy is not adopted by resolution or ordinance by its governing body, requires the public agency to cease using the surveillance technologies within 30 days and until the time that a policy is adopted. Requires the policy to include, in separate sections specific to each unique type of surveillance technology, a description of each surveillance technology used or relied upon for information by the public agency. Requires each section covering a separate technology to include, at a minimum, all of the following: (1) authorized purposes for using the surveillance technology; (2) types of data that can be and is collected by the surveillance technology; (3) a description of the job title or other designation of employees and independent contractors who are authorized to use the surveillance technology or to access the data collected; (4) the title of the official custodian or owner of the surveillance technology; (5) a description of how the surveillance technology will be monitored to ensure the security of the information and compliance with any applicable privacy laws; (6) the length of time information collected by the surveillance technology will be retained, and a process to determine if and when to destroy the retained information; (7) purposes of, processes for and restrictions on the sale, sharing or transfer of information to other persons; (8) how collected information can be accessed by members of the public, including criminal defendants; (9) a process to maintain a record of access of the surveillance technology or information collected by the technology; and (10) the existence of a memorandum of understanding or other agreement with another local agency or party for the shared use of the surveillance technology, or the sharing of the information collected through its use. After July 1, 2018, specifies that if a public agency intends to acquire a new type of surveillance technology after the adoption of the Surveillance Use Policy, requires the agency to submit an amendment to the policy to include the technology as a new section of the policy to its governing body for approval. At a time interval agreed to by the public agency and its governing body, but not less often than every two years, requires an agency that uses surveillance technologies and has an approved Surveillance Use Policy to submit to its governing body a written Surveillance Technology Use Report. Requires the report to include, at a minimum, all of the following: (1) the total costs for each surveillance technology, including personnel costs; (2) a description of how many times each type of technology was used in the preceding year, and how many times it helped apprehend suspects or close a criminal case; (3) a description of the type of data collected by each surveillance technology, including whether each technology captured images, sound or other data; (4) the number of times and the purposes surveillance technology was borrowed from or lent to another agency, including technologies used under exigent circumstances; (5) the number and classification of the agency employees trained and authorized to use each type of surveillance technology, along with a description of the training provided and how often it was provided; and (6) disclosure of whether any surveillance technology was used in a manner out of compliance with the agency’s Surveillance Use Policy; whether data collected through the use of the technology was inappropriately disclosed, released or in any other way revealed for a non-approved reason; and the steps the agency took to correct the error. Defines “public agency” to include any agency employing peace officers.

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State Senate Bills Subject Last Status VTA Amended Position SB 32 Creates the Citizens’ Pension Oversight Committee to serve in an advisory role to the Teachers’ 3/2/17 Senate Public (Moorlach) Retirement Board and the Board of Administration of the California Public Employees’ Retirement Employment & Public Employees’ System (CalPERS). Requires the oversight committee to annually review the actual pension costs and Retirement Pension Reform obligations of CalPERS and the State Teachers’ Retirement System (STRS), and to report them to the Committee public. Prohibits a public retirement board from deeming incentive pay, educational pay, premium pay, special assignment pay, or holiday pay to be pensionable compensation. Requires the Board of Administration of CalPERS to reduce the unfunded liability of CalPERS to the 1980 level to be achieved by 2030, with the goal of fully funding the system. In any year in which the unfunded actuarial liability of CalPERS is greater than zero, requires the Board of Administration to increase the employer contribution rate otherwise provided by law for the state, contracting agencies and school employers by 10 percent. By January 1, 2019, requires the Board of Administration of CalPERS to develop and submit to the Legislature for approval a hybrid retirement plan consisting of the following: (1) a defined benefit component that utilizes low-risk investments; and (2) a defined contribution component under which an employee’s contributions will be matched by employer contributions up to a certain percent. Requires a member who is first employed by the state, a contracting agency or a school employer, and becomes a member of CalPERS on or after the approval of the hybrid plan by the Legislature to participate in the hybrid plan. For an individual who becomes a member of any public retirement system for the first time on or after January 1, 2018, and who was not a member of any other public retirement system prior to that date, requires the final compensation used to determine the member’s retirement benefits to be the highest annual pensionable compensation earned by the member during a period of at least 60 consecutive months, or at least five consecutive school years if applicable. Prohibits a public retirement system from making a cost-of-living adjustment to any retirement benefit to, or on behalf of, a person retired under the system, or to any survivor or beneficiary of a member or person retired under the system for any year, beginning on or after January 1, 2018, in which CalPERS or STRS is not fully funded. SB 49 Prohibits a state or local agency from amending or revising its rules and regulations to be less stringent 2/22/17 Senate (de Leon) than the baseline federal standards for the following federal laws: (1) Clean Air Act; (2) Endangered Appropriations California Species Act; (3) Safe Drinking Water Act; (4) Water Pollution Control Act; and (5) any other federal Committee Environmental, law relating to environmental protection, natural resources or public health. Defines “baseline federal Public Health and standards” to mean the authorizations, policies, objectives, rules, requirements, and standards contained Workers Defense in the aforementioned federal laws, or regulations implementing those laws in existence as of January 1, Act of 2017 2016, or January 1, 2017, whichever is more stringent. Prohibits a state agency from amending or revising its rules and regulations in a manner that is less stringent in its protection of workers’ rights or worker safety than standards in existence as of January 1, 2016, established pursuant to the following federal laws: (1) Fair Labor Standards Act; (2) Occupational Safety and Health Act; (3) Mine Safety and Health Act; and (4) any other federal statutes relating to worker rights and protections.

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State Senate Bills Subject Last Status VTA Amended Position SB 50 Establishes a state policy to discourage conveyances that transfer the ownership of federal public lands 4/17/17 Senate (B. Allen) in California from the federal government to another entity. Specifies that such conveyances are void Appropriations Federal Public unless the State Lands Commission was provided with the right of first refusal to the conveyance, or the Committee Lands: Conveyances right to arrange for the transfer of the property to another entity. Authorizes the commission to seek declaratory and injunctive relief from a court of competent jurisdiction to contest conveyances made to any entity unless the requirements of this bill are met. Requires the commission to issue a certificate affirming compliance with this bill, if the commission was provided with the right of first refusal or the right to arrange for the transfer of the federal public lands to another entity. Prohibits a person from knowingly filing or recording a deed, instrument or other document related to a conveyance of federal public lands unless it is accompanied by a certificate of compliance issued by the commission. Requires the commission, the Wildlife Conservation Board and the Department of Fish & Wildlife to enter into a memorandum of understanding that establishes a state policy that all three agencies would undertake all feasible efforts to protect against any future unauthorized conveyances of federal public lands. Specifies that the provisions of the bill do not apply to the conveyance of federal public lands pursuant to a conservation plan. SB 51 Prohibits professional licensing entities within state government from taking disciplinary action, 5/3/17 Senate (Jackson) including disbarment, suspension, loss of credential, registration, or other professional privilege, against Appropriations Professional a public employee, or employee of a government contractor, subcontractor or grantee in connection Committee Licenses: with actions taken by that person to: (1) report improper governmental action; or (2) communicate the Environmental results of, or information about, scientific or technical research in a scientific or public forum, or with Sciences and the media. Specifies that this prohibition includes persons working in the environmental sciences and Climate Change climate-change-related fields. Requires the California Environmental Protection Agency (CalEPA) to ensure that all scientific information and other data otherwise in the public domain is protected against censorship or destruction by the federal government. SB 80 Requires the lead agency for a project to post notices related to compliance with the California 2/14/17 Assembly Desk (Wieckowski) Environmental Quality Act (CEQA) on its Internet Web site. Requires the lead agency to offer to CEQA: Notices provide such notices by email to any person requesting them. Requires a county clerk to post notices regarding an environmental impact report or a negative declaration on the county’s Internet Web site. If the lead agency determines that a project falls within a class of projects that is not subject to CEQA pursuant to guidelines developed by the Office of Planning & Research (OPR), and the agency approves or determines to carry out the project, requires the agency to file a notice of determination with the county clerk of each county in which the project will be located.

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State Senate Bills Subject Last Status VTA Amended Position SB 100 Recasts the goals of the California Renewables Portfolio Standards Program to achieve a target of 5/1/17 Senate Energy, (de Leon) generating 50 percent of electricity sold at retail in the state from eligible renewable energy resources Utilities & Energy Policies and by December 31, 2026, 60 percent by December 31, 2030, and 100 percent by December 31, 2045. Communications Programs Requires retail sellers and local publicly owned electric utilities to procure a minimum quantity of Committee electricity products from eligible renewable energy resources, so that the total kilowatt hours of those products sold to their retail end-use customers achieve 45 percent of retail sales by December 31, 2023, 50 percent by December 31, 2026, and 60 percent by December 31, 2030. Authorizes the California Public Utilities Commission (CPUC) to establish a requirement that gas sellers procure a minimum percentage of biomethane or renewable gas from sources that reduce emissions of short-lived climate pollutants in the state. Requires the CPUC, the State Energy Resources Conservation & Development Commission, and the California Air Resources Board (CARB) to incorporate the planning goal and regulatory requirement of achieving 100 percent reliance on eligible renewable energy resources or zero-carbon electric generating facilities to supply all electricity procured to serve California end-use customers no later than December 31, 2045, into all the energy and climate program subject to their jurisdiction. Requires the CPUC to direct gas corporations to file applications to implement programs to facilitate fueling with renewable gas in order to replace diesel-fueled heavy duty trucks with near zero-emission vehicles. SB 132 Amends the 2016 Budget Act to include the following appropriations: (1) $100 million from the State 4/6/17 Signed into Law: (Budget Committee) Highway Account for the University of California, Merced Campus Parkway Project; (2) $400 million Chapter #7 2016 Budget Act from the Transit and Intercity Rail Capital Program for an extension of the Altamont Commuter Express (ACE) service to the city of Merced; (3) $427.2 million from the State Highway Account for the Riverside County Transportation Efficiency Corridor Project; and (4) $50 million from the Trade Corridor Enhancement Account for a new Zero/Near-Zero Emission Warehouse Program to be administered by the California Air Resources Board (CARB). SB 137 Requires a transit district to publish an ordinance on its Internet Web site within 15 days after the 4/27/17 Senate (B. Allen) ordinance’s passage, and in a manner that is accessible and easily navigable. Appropriations Transit Districts: Committee Ordinances SB 145 Deletes provisions in current law requiring the Department of Motor Vehicles to notify the Legislature As Assembly Desk (Hill) of the receipt of an application from a manufacturer seeking approval to operate an autonomous vehicle Introduced Autonomous on public roads. Vehicles

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State Senate Bills Subject Last Status VTA Amended Position SB 150 Requires the California Air Resources Board (CARB) to update and revise the greenhouse gas 4/27/17 Senate (B. Allen) emissions reduction targets for each metropolitan planning organization’s regional transportation plan Appropriations Regional (RTP) in a manner that is consistent with CARB’s scoping plan and with an assessment of the portion Committee Transportation of the state’s overall climate targets that is anticipated to be met by reductions in vehicle miles traveled. Plans: Sustainable Beginning July 1, 2018, requires CARB to provide an assessment of the most currently available and Communities historical vehicle miles traveled based on data and reports from the state. By September 1, 2018, and Strategy every four years thereafter, requires CARB to prepare a report that assesses progress made by each metropolitan planning organization on a set of data-supported metrics that include changes in greenhouse gas emissions, vehicle miles traveled, accessibility, public transit, active transportation, and land use. SB 158 By February 7, 2020, requires the Department of Motor Vehicles (DMV) to adopt regulations related to 4/17/17 Assembly Desk (Monning) training for entry-level drivers of commercial motor vehicles. Requires the course of instruction for Commercial Driver’s such drivers to include the following: (1) for an applicant for a Class A commercial driver’s license, a Licenses: Training minimum of 30 hours of behind-the-wheel training, at least 10 hours of which must be on an off- for Entry-Level highway facility and 10 hours of which must be on a public road; and (2) for an applicant for a Class B Drivers commercial driver’s license, a minimum of 15 hours behind-the-wheel training, at least 7 hours of which must be on a public road. SB 181 Requires a state agency proposing to adopt a new regulation to identify two existing regulations that it 4/5/17 Senate (Berryhill) previously adopted that would be repealed upon the adoption of the new regulation. Provides that the Governmental State Agency adoption of the proposed new regulation shall be contingent upon the repeal of the two existing Organization Regulations regulations that have been identified by the state agency. Committee SB 185 In any case involving an infraction under the Vehicle Code filed with the court, requires the court to 3/20/17 Senate (Hertzberg) determine whether the defendant is indigent for purposes of establishing the amount of any associated Appropriations Vehicle Code fine, fee, assessment, or other financial penalties that the person can afford to pay. If a defendant is Committee Violations: Indigent determined to be indigent, requires the court to reduce the base fine, penalty assessments, any state or Defendants local fees, and any civil assessments by 80 percent on all charges pending against the defendant. Requires the court to provide alternatives to immediate payment of a sentence for a Vehicle Code infraction, including a payment plan option. Requires the court to determine the amount that a defendant can afford to pay per month by using a payment calculator developed by the Judicial Council. For persons not found to be indigent, requires that the monthly payment not exceed 5 percent of the defendant’s family monthly income, excluding deductions for essential living expenses. For defendants found to be indigent, requires the monthly payments to be $0 until the person’s financial circumstances change, and requires the remaining amount owed to be discharged after 48 months in the interest of justice.

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State Senate Bills Subject Last Status VTA Amended Position SB 224 At the time of the next review of the guidelines prepared and developed to implement the California 4/5/17 Senate (Jackson) Environmental Quality Act (CEQA), requires the Office of Planning & Research to prepare, develop Appropriations CEQA: Baseline and transmit to the Natural Resources Agency recommended proposed changes or amendments to Committee Physical Conditions determine the baseline physical conditions by which a lead agency determines whether a project has a significant effect on the environment. In developing these recommendations, requires the Office of Planning & Research to limit the consideration of modifications to the environment at the project site caused by either of the following: (1) actions undertaken without an environmental review for emergency repairs to public service facilities necessary to maintain service, or specific actions necessary to prevent or mitigate an emergency; or (2) actions that are unpermitted or illegal at the time the action was undertaken. SB 251 Authorizes the County of Merced to conduct a pilot project for the testing of autonomous vehicles that As Senate (Cannella) do not have a driver seated in the driver’s seat, and that are not equipped with a steering wheel, a brake Introduced Transportation & Merced County: pedal or an accelerator, provided that the testing is conducted only at the Castle Commerce Center, Housing Autonomous inclusive of public roads within the center. Prior to the start of testing of any autonomous vehicles Committee Vehicles Pilot pursuant to this bill, requires Merced County, or a private entity, or a combination of the two to do both Project of the following: (1) obtain an instrument of insurance, surety bond or proof of self-insurance in an amount of $5 million; and (2) submit a detailed description of the testing program to the Department of Motor Vehicles (DMV). Requires the operator of the autonomous vehicle technology being tested to disclose to an individual participating in the pilot project what personal information, if any, concerning the individual will be collected by the autonomous vehicle. For the testing of autonomous vehicles within the Castle Commerce Center, allows the DMV to require data collection for evaluating the safety of the vehicles. Specifies that the bill does not limit the authority of the DMV to promulgate regulations governing the testing and operation of autonomous vehicles on public roads, with or without the presence of a driver inside the vehicle. Specifies that the provisions of the bill shall remain in effect only until 180 days after the operative date of any regulations promulgated by the DMV that allow for the testing of autonomous vehicles without a driver in the vehicle. Requires any testing of autonomous vehicles conducted by Merced County to conform to those regulations.

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State Senate Bills Subject Last Status VTA Amended Position SB 263 Requires the Strategic Growth Council to establish no less than 10 regional climate assistance centers, 5/3/17 Senate (Leyva) as follows: (1) one center in Northern California by January 1, 2020; (2) one center in Southern Appropriations Regional Climate California by January 1, 2020; (3) one center in the San Joaquin Valley by January 1, 2020; and (4) Committee Assistance Centers the remaining centers to be equitably distributed across urban and rural areas of the state by January 1, 2023. Requires the regional centers to do all of the following: (1) provide technical assistance to target user groups in applying for money for programs funded with cap-and-trade action proceeds from the Greenhouse Gas Reduction Fund, the Active Transportation Program, and programs under the California Farmland Conservancy Program Act; (2) provide technical assistance and training to target user groups in project management and implementation for the projects funded under the aforementioned programs; and (3) seek scientific and technical support from federal, state and local sources of expertise in accomplishing the goals of the center, as needed. In addition, requires the centers to work with local organizations to formulate policy ideas that accomplish any of the following: (1) increase community and private-sector engagement in addressing climate change; (2) increase equitable investment in disadvantaged communities; (3) maximize the co-benefits of climate-related projects; (4) expand workforce development training; and (5) identify strategies that prevent the displacement of persons and families of low or moderate income. Requires the Strategic Growth Council to do all of the following: (1) conduct outreach and provide direct technical assistance to the regional centers and the public in order to identify relevant state funding programs, develop eligible activities and prepare grant applications; (2) promote the effective integration of state climate investment programs for low-income customers and disadvantaged communities; (3) identify potential matching funds from federal, state and local agencies; and (4) convene an annual statewide summit for regional center staff and grant recipients. SB 264 Requires net excess toll revenues from the I-405 Corridor express lanes between State Route 73 and I- 4/4/17 Senate (Nguyen) 605 in Orange County to be allocated as follows: (1) 20 percent to the Orange County Transportation Transportation & I-405 Corridor Authority (OCTA); (2) 70 percent equally distributed to cities along the project corridor; and (3) 10 Housing Express Lanes percent equally distributed to cities that are not along the project corridor. Requires these revenues to Committee be expended only to enhance traffic flow, reduce traffic congestion and mitigate road wear to streets within three miles of the I-405 Corridor. Provides that eligible expenditures are limited to capital improvements, operational improvements and maintenance to on-ramps, off-ramps, connector roads, bridges, or other structures that are related to the tolled or non-tolled facilities within three miles of the I-405 Corridor. SB 285 Prohibits a public employer from deterring or discouraging employees from becoming or remaining 3/14/17 Senate (Atkins) members of an employee organization. Grants the Public Employment Relations Board jurisdiction Appropriations Public Employers: over violations of this prohibition. Committee Union Organizing

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State Senate Bills Subject Last Status VTA Amended Position SB 337 Requires the Department of Finance, in consultation with the Franchise Tax Board, to estimate, on an As Senate (Bates) annual basis, the amount of revenues to be received from state taxes in the next fiscal year as a Introduced Governance & Repatriation consequence of the enactment of a federal corporate repatriation statute under which the foreign Finance Infrastructure Fund earnings of U.S.-based corporations that are currently invested abroad are moved to the United States. Committee After reservation of the appropriate amounts required for K-14 education pursuant to Proposition 98 and for the Budget Stabilization Account, specifies that the remaining repatriation revenues are to be transferred to a newly created Repatriation Infrastructure Fund. Requires the revenues in this fund to be continuously appropriated to the California Transportation Commission (CTC) and allocated as follows: (1) 65 percent for trade corridor projects; (2) 30 percent to cities and counties for local streets/roads; and (3) 5 percent to the Public Transportation Account (PTA). Specifies that the provisions of the bill would become inoperative on July 1, 2025. SB 406 Authorizes a blood transport vehicle to use a high-occupancy vehicle (HOV) lane without the required 4/27/17 Senate (Leyva) number of occupants, if the vehicle is displaying a distinctive decal, label or other identifier issued by Appropriations Blood Transport the Department of Motor Vehicles (DMV) that clearly distinguishes it from other vehicles. Requires a Committee Vehicles blood transport vehicle displaying such decal, label or other identifier to be granted toll-free or reduced- rate passage in a high-occupancy toll (HOT) lane, unless prohibited by federal law. Specifies that toll- free or reduced-rate passage in a HOT lane is authorized only during the transportation of blood. Defines a “blood transport vehicle” to mean a vehicle that transports blood between collection points and hospitals or storage centers, and that is clearly marked on all sides with the name of the Red Cross or blood bank. SB 414 Specifies that no further bonds shall be sold for high-speed rail purposes pursuant to the Safe, Reliable As Senate (Vidak) High-Speed Passenger Train Bond Act for the 21st Century (Proposition 1A), except as specifically Introduced Transportation & High-Speed Rail: provided with respect to an existing appropriation for early improvement projects related to the Phase I Housing Bond Funding blended system. Upon appropriation by the Legislature, requires the unspent proceeds received from Committee outstanding bonds issued and sold for high-speed rail purposes prior to the effective date of the provisions of this bill to be redirected to retiring the debt incurred from the issuance and sale of those outstanding bonds. Allows the remaining unissued bonds, as of the effective date of the provisions of this bill, that were authorized for high-speed rail purposes to be issued and sold. Upon appropriation by the Legislature, requires the net proceeds from the sale of these remaining unissued bonds to be made available as follows: (1) 50 percent to the California Transportation Commission (CTC) for allocation to repair and new construction projects on state highways and freeways; and (2) 50 percent to the Controller’s Office for apportionment to cities and counties for transportation projects or other infrastructure improvements. Makes no changes to the authorization under Proposition 1A for the issuance of $950 million in bonds for rail purposes other than high-speed rail. Specifies that the provisions of the bill would become effective only upon approval by the voters at the June 5, 2018, statewide primary election.

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State Senate Bills Subject Last Status VTA Amended Position SB 415 For real property acquired by the state on or after January 1, 2018, for high-speed rail purposes, As Senate (Vidak) requires the California High-Speed Rail Authority to make a good faith effort to sell or exchange such Introduced Transportation & High-Speed Rail: property within three years from the date of acquisition if the authority has not begun construction on Housing Real Property the property within that period of time. For real property acquired by the state before January 1, 2018, Committee for high-speed rail purposes, requires the California High-Speed Rail Authority to make a good faith effort to sell or exchange such property by January 1, 2021, if the authority has not begun construction on the property by then. If the California High-Speed Rail Authority leased, prior to January 1, 2018, real property acquired by the state for high-speed rail purposes, requires the authority to make a good faith effort to sell or exchange such property within three years from the date of the expiration of the lease, if the authority has not begun construction on the property within that period of time. SB 422 Re-enacts and makes permanent the statutory authority for Caltrans and regional transportation 3/20/17 Senate Support (Wilk) agencies, including the Santa Clara Valley Transportation Authority (VTA), to utilize public-private Transportation & Public-Private partnerships for transportation infrastructure projects. Housing Partnerships Committee SB 450 Prior to authorizing a bond issuance, requires the governing body of a public entity to obtain and 3/22/17 Senate Floor (Hertzberg) disclose all of the following information in a meeting open to the public: (1) the annual percentage rate Public Notice of of the bond, which means the cost of interest expressed as a yearly rate; (2) the finance charge of the Bond Issuances bond, which means the sum of all charges payable by the borrower, including interest and transaction costs, expressed in dollar terms; (3) the amount financed by the bond, which means the amount of credit provided by the lender; (4) the total payment amount, which means the sum total of all payments the borrower will have made by the time the full balance has been paid, including all fees and finance charges. Requires this information to be obtained as follows: (1) as a good faith estimate from an underwriter, financial adviser or private lender; or (2) from a third-party borrower, if the public body issuing the bonds is a conduit financing provider. SB 477 At any time after an interagency transfer agreement for an intercity rail corridor between Caltrans and a 3/27/17 Senate (Cannella) joint powers board has been executed, allows the agreement to be amended to extend the affected rail Appropriations Intercity Rail corridor to provide intercity rail service beyond the defined boundaries of the corridor. Requires a Committee Corridors: proposed extension to be recommended and justified in the business plan for the intercity rail corridor Extensions by the joint powers board, and to be approved by the California State Transportation Agency (CalSTA). In addition, requires the joint powers board to make a determination that the proposed extension would not jeopardize or come at the expense of other existing intercity rail services. SB 480 For FY 2019, requires the Controller’s Office, based on financial statements from the prior fiscal year, 3/29/17 Senate (Hueso) to segregate 1 percent of the money in the State Highway Account to be expended by Caltrans, upon Appropriations State Highway appropriation by the Legislature, for feasibility, environmental and engineering studies pertaining to Committee Account: Bridge bridge safety, with priority being given to bridges that provide transportation links over state and local Safety Projects parks, and for other bridge safety projects in the state.

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State Senate Bills Subject Last Status VTA Amended Position SB 496 For contracts entered into on or after January 1, 2018, by a public agency for design professional 4/5/17 Signed into Law: (Cannella) services, prohibits the cost to defend against a lawsuit charged to the design professional from Chapter #8 Design exceeding his or her proportionate percentage of fault. In the event that one or more defendants is Professionals: unable to pay its share of defense costs due to bankruptcy or dissolution of the business, requires the Indemnity design professional to meet and confer with the other parties regarding unpaid defense costs. Specifies that the provisions of the bill do not apply in either of the following situations: (1) any contract for design professional services where a project-specific general liability policy insures all project participants from general liability exposures on a primary basis and also covers all design professionals for their legal liability arising out of their professional services on a primary basis; or (2) a design professional who is a party to a written design-build joint venture agreement. Exempts state agencies from the provisions of the bill. SB 498 Requires the California Air Resources Board (CARB) to review all programs affecting the adoption of 4/6/17 Senate (Skinner) zero-emission vehicles in California. By January 1, 2019, requires CARB to report to the Legislature Appropriations Zero-Emission regarding policy recommendations for how both public and private vehicle fleets may be utilized in Committee Vehicles increasing the use of zero-emission vehicles in the state. SB 594 Requires Caltrans, to the extent permitted under federal and state law, to establish and meet all of the 4/5/17 Senate (Beall) following goals: (1) to achieve at least an aggregate 25-percent participation rate by small businesses Transportation & Caltrans: Contracts and disadvantaged business enterprises in federally funded projects; (2) to achieve at least an aggregate Housing 30-percent participation rate by small businesses and disadvantaged business enterprises in state-funded Committee projects; and (3) to achieve at least a 15-percent participation rate by disabled veteran business enterprises in state-funded projects. SB 595 Requires the City/County of San Francisco and the eight other Bay Area counties to place on a future 4/18/17 Senate (Beall) countywide ballot a proposed, unspecified increase in the amount of tolls charged on the state-owned Appropriations Regional Measure 3 toll bridges in the region to be used to fund unspecified projects and programs. Requires the ballot Committee pamphlet for the election to include a detailed description of the expenditure plan indicating the projects and programs to be funded with the revenues derived from the toll increase. SB 603 Prohibits the Bay Area Rapid Transit District (BART) from entering into an agreement that would limit As Senate Public (Glazer) its ability to prepare for, or operate during, a work stoppage. Introduced Employment & BART: Work Retirement Stoppages Committee SB 604 Prohibits the employees of the Bay Area Rapid Transit District (BART) from engaging in a strike or As Senate Public (Glazer) work stoppage if the BART Board of Directors maintains all provisions of an expired contract, Introduced Employment & BART: Prohibition including compensation and benefit provisions, and an employee or union has agreed to a provision Retirement of Strikes by prohibiting strikes in the expired or previous written labor contract. Provides that an employee whom Committee Employees BART finds willfully engaged in a strike or work stoppage in violation of the provisions of this bill is subject to dismissal if that finding is sustained upon conclusion of the appropriate proceedings necessary for the imposition of a disciplinary action on the employee.

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State Senate Bills Subject Last Status VTA Amended Position SB 614 For those public transit agencies that adopt and enforce an ordinance to impose administrative penalties 5/4/17 Senate Floor Support (Hertzberg) for fare evasion and certain passenger misconduct violations, requires the revenues from the Passenger administrative fines to be deposited with the transit agency that issued the citation, rather than in the Misconduct general fund of the county in which the citation is administered. Limits the amount of the Violations and Fare administrative fines to a maximum of $125 for the first and second violation, and to a maximum of Evasion: $200 for the third and any subsequent violation. Requires the public transit agency to permit the Administrative Fines performance of community service in lieu of payment of the administrative fine if the person is under 18 years of age or provides satisfactory evidence of an inability to pay the fine in full. Allows the public transit agency to require the performance of community service at its facilities. SB 640 States that the intent of the bill is to make the following three broad changes to California’s tax code: As Senate (Hertzberg) (1) provide tax relief to middle- and low-income Californians, while simplifying the personal income Introduced Governance & Retail Sales Tax on tax, maintaining progressivity and mitigating the reliance on top income earners; (2) broaden the tax Finance Services base by imposing a modest sales tax on services; and (3) enhance the state’s business climate, and Committee incentivize entrepreneurship and business creation by lowering the corporate income tax on small businesses, exempting very small business from the sales tax on services, and significantly reducing the minimum franchise tax. Creates the Retail Sales Tax on Services Fund in the State Treasury. States that the intent is to appropriates money in the fund to: (1) provide tax relief to middle- and low-income Californians to offset the effect of the sales tax on services; (2) assist in securing greater stability for California’s infrastructure, workforce, and health care and education systems, including higher education; and (3) enhance California’s business climate, and incentivize and protect small businesses. SB 680 Allows the Bay Area Rapid Transit District (BART) to acquire property for transit-oriented joint As Assembly Desk (Wieckowski) development that is located within a half mile of a transit facility, rather than within a quarter mile, as is Introduced BART: Transit- the case under current law. Oriented Development

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State Senate Bills Subject Last Status VTA Amended Position SB 760 Establishes a Division of Active Transportation within Caltrans to be responsible for: (1) developing As Senate (Wiener) projects and programs that increase bicycle and pedestrian safety and trips statewide; and (2) reviewing Introduced Transportation & Active all state highway capital improvement projects for inclusion of bicycle and pedestrian facilities, where Housing Transportation and feasible. Requires the California State Transportation Agency to assign an undersecretary to give Committee Complete Streets attention to active transportation matters to guide progress toward meeting Caltrans’ active transportation goals and objectives. Requires the California Transportation Commission (CTC) to give high priority to increasing safety for bicyclists and pedestrians, and implementing bicycle and pedestrian facilities. By January 1, 2018, requires Caltrans to update its Highway Design Manual to incorporate the complete streets design concept. Requires the Assets Management Plan currently prepared by Caltrans to prescribe a process for community input and complete streets implementation to prioritize safety and accessibility for bicyclists, pedestrians and public transit users on all State Highway Operation and Protection Program (SHOPP) projects, where applicable. In connection with the Assets Management Plan, requires the CTC to adopt performance measures that include: (1) conditions of bicycle and pedestrian facilities; (2) accessibility and safety for bicyclists, pedestrians and public transit users; and (3) vehicle miles traveled on the state highway system. Adds capital improvements related to accessibility for bicyclists, pedestrians and public transit users of state highways and bridges to the list of projects that are eligible for SHOPP funding. Requires Caltrans to specify the cost of bicycle and pedestrian facilities for each project programmed in the SHOPP. When undertaking any capital improvement project on a state highway or a local street crossing a state highway that is funded through the SHOPP, requires Caltrans, by January 1, 2020, to include new bicycle and pedestrian facilities or improvements to existing facilities as part of the project, consistent with specified requirements. Requires Caltrans to establish a project development team for each SHOPP project, which shall include representatives from the local transportation agency, the local bicycle and pedestrian advisory committee, community-based organizations, residents of low-income disadvantaged communities, and other local stakeholders impacted by the project. Requires the project development team to provide input to Caltrans on identifying bicycle and pedestrian facility and public transit access needs related to the project. Requires Caltrans to use 3 percent of SHOPP funds from the Road Maintenance and Rehabilitation Account, if that account is created through legislation, for bicycle and pedestrian facilities. Makes accessibility improvements for all users of the transportation system that improve the efficiency of moving people within existing roadways, reduce vehicle miles traveled and promote public health the highest priority for State Highway Account funding. Requires safety improvements funded from the State Highway Account to prioritize reducing fatalities and severe injuries for vulnerable road users, and prohibits these projects from increasing vehicle miles traveled. SB 768 Re-enacts and makes permanent the statutory authority for Caltrans and regional transportation 3/27/17 Senate (B. Allen) agencies, as defined, to utilize public-private partnerships for transportation infrastructure projects. Appropriations Public-Private Committee Partnerships

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State Senate Bills Subject Last Status VTA Amended Position SCA 2 Calls for placing before the voters an amendment to the California Constitution to exempt 3/30/17 Senate Floor (Newman) appropriations of revenues from the Road Maintenance and Rehabilitation Account that is proposed to Motor Vehicle Fees be created pursuant to SB 1 (Beall) from counting toward the state appropriation limit (Gann Limit). and Taxes: Requires all revenues derived from the state sales tax on diesel fuel to be deposited into the Public Restrictions on Transportation Account (PTA) and used exclusively for mass transportation purposes. Prohibits the Expenditures Legislature from taking any action that would temporarily or permanently divert or appropriate these PTA revenues for non-mass transportation purposes; or that would delay, defer, suspend, or otherwise interrupt the quarterly deposit of these revenues into the PTA. Requires the revenues derived from the new transportation improvement fee that would be imposed by SB 1 to be used solely for transportation purposes. Prohibits transportation improvement fee revenues from being used to pay the principal or interest on state transportation general obligation bonds that were authorized by the voters prior to November 8, 2016. Prohibits the use of these revenues to pay the principal or interest on any state transportation general obligation bond acts approved by the voters after November 8, 2016, unless the bond act expressly authorizes that use. Prohibits the Legislature from borrowing or using transportation improvement fee revenues for purposes other than those authorized in SB 1. SCA 6 Calls for placing before the voters an amendment to the California Constitution to allow a local 5/1/17 Senate Support (Wiener) government to impose, extend or increase a special tax in order to provide funding for transportation Transportation & Local Transportation purposes, if approved by a 55 percent majority vote. Specifies that a tax is deemed to provide funding Housing Special Taxes for transportation purposes if 100 percent of the net revenues from the tax, after collection and Committee administrative expenses, is dedicated to transportation programs and projects. Allows the ordinance proposing the tax to provide for the issuance of bonds payable from the revenues derived from the tax. Specifies that the ordinance must include an expenditure plan specifying the transportation programs or projects to be funded by the tax revenues, as well as a requirement for an annual independent audit to ensure that the tax revenues are being expended only for authorized purposes. Specifies that this constitutional amendment would take effect on the date of the election at which it is approved by the voters. SCA 10 Calls for placing before the voters an amendment to the California Constitution to prohibit a As Senate Public (Moorlach) government employer from providing its employees any retirement benefit increase until that increase Introduced Employment & Public Employee is approved by a two-thirds vote of the electorate within the employer’s jurisdiction and that vote is Retirement Retirement Benefits certified. Defines “retirement benefit” to mean any post-employment benefit, including a benefit Committee provided through a defined benefit pension plan, defined contribution plan, retiree health care plan, or any form of deferred compensation offered by a government employer. Defines ‘benefit increase” to mean any change that increases the value of an employee’s retirement benefit, including increasing a benefit formula or the rate of cost-of-living adjustments, expanding the categories of pay included in pension calculations, reducing a vesting period, lowering the eligible retirement age, or otherwise providing a new economic advantage for the employee.

2017-2018 Legislative Update Matrix

Date: May 11, 2017 Current Meeting: May 18, 2017 Board Meeting: June 1, 2017

BOARD MEMORANDUM

TO: Santa Clara Valley Transportation Authority Administration & Finance Committee

THROUGH: General Manager, Nuria I. Fernandez

FROM: Chief Financial Officer, Raj Srinath

SUBJECT: Approval of Biennial Budget for Fiscal Years 2018 and 2019

Policy-Related Action: Yes Government Code Section 84308 Applies: No Resolution

ACTION ITEM

RECOMMENDATION:

Recommend that the VTA Board of Directors adopt a resolution approving the Fiscal Years 2018 and 2019 Biennial Budget for the period July 1, 2017 through June 30, 2019. (Dollars in Thousands) Fiscal Year Fiscal Year Fund 2018 2019 VTA Transit-Operating 475,478 493,195 VTA Transit-Capital 174,833 ---* 2000 Measure A Transit Improvement Program-Operating 100,407 108,304 2000 Measure A Transit Improvement Program-Capital 701,709 ---* Congestion Management Program-Operating 5,954 5,815 VTP Highway Improvement Program-Capital 79,551 ---* Joint Development Program-Operating 400 200 Joint Development Program-Capital 2,800 ---* Silicon Valley Express Lanes Program-Operating 1,974 1,193 2008 Measure B - BART Operating Sales Tax Program-Operating 14,670 24,744 2016 Measure B Program 294,560 ---* *Total Appropriation for FY 2018 and FY 2019 reflected in FY 2018

BACKGROUND:

The Proposed Budget for Fiscal Years 2018 and 2019 was presented to the Board of Directors at a budget workshop on April 21, 2017. The unapproved minutes of the workshop are included as Attachment A. On May 1 to May 9, five community meetings were held in Morgan Hill, Mountain View, San Jose (two) and Sunnyvale specifically for the purpose of presenting the Proposed Budget and receiving public comment. On May 10 and May 11, the Proposed Budget was presented to the Technical Advisory Committee, Citizens’ Advisory Committee, Committee for Transportation Mobility and Accessibility, and Policy Advisory Committee. A summary of comments received from the public and advisory committee members is included as Attachment B.

DISCUSSION:

There are no changes to the overall appropriation levels presented in the Proposed Budget for Fiscal Years 2018 and 2019. However, minor updates have been made to various schedules to reflect revised information, clarify content and highlight specific actions. Updated schedules reflecting these changes are included in Attachment C. VTA Transit (Attachment C, pages 1-2)  Comparison of Revenues and Expenses Schedule (Attachment C, page 1, lines 15, 16 and 46) and Sources and Uses of Funds Summary (Attachment C, page 2, lines 1, 3, 4,6, and 9-12) updated to reflect removal of Financing Proceeds in FY 2018 and FY 2019 pending determination of optimal mix of short-term financing and reserves to address the projected deficit. 2000 Measure A Transit Improvement Program (Attachment C, page 5)  Comparison of Revenues and Expenses Schedule footnotes updated to indicate increase of VTA Operating Assistance (line 6) from 18.5% to 20.75% for FY 2018 and FY 2019. 2016 Measure B Program (Attachment C, page 13)  Funding Allocation Schedule updated to reflect separate funding for the “Enhance Core Network” and “Innovative Transit Models” categories of the Transit Operations Program Area.  Funding Allocation Schedule footnotes updated to reflect reimbursement of $1.65M to the VTA Transit Fund for payment made to the Registrar of Voters for 2016 Measure B’s share of costs of the November 8, 2016 General Election.

ALTERNATIVES:

The Board of Directors may modify the Biennial Budget before adoption.

Page 2 of 3 21

FISCAL IMPACT:

This action provides the appropriation or legal authorization to make expenditures and to incur obligations by Fund as set forth in the attached Resolution (Attachment D). Operating appropriations are time period limited. Capital and Program appropriations have no expiration.

ADVISORY COMMITTEE DISCUSSION/RECOMMENDATION:

See Attachment B.

Prepared by: Carol Lawson, Fiscal Resources Manager Memo No. 6065

Page 3 of 3 21.A

BOARD OF DIRECTORS WORKSHOP/SPECIAL MEETING

Friday, April 21, 2017

MINUTES

1. CALL TO ORDER AND ROLL CALL

The Workshop/Special Meeting of the Santa Clara Valley Transportation Authority’s (VTA) Board of Directors (Board) was called to order by Chairperson Bruins at 9:00 a.m. in the Board of Supervisors’ Chambers, County Government Center, 70 West Hedding Street, San José, California. Chairperson Bruins announced that Agenda Item #3.1.A., FY 2018 and FY2019 Proposed Biennial Budget, Agenda Item #3.1.B., Fare Policy Review, and Agenda Item #3.2., Suspend FY17 Transfer to Capital and Initiate a Commercial Paper Program, would be heard together.

Attendee Name Title Status Jeannie Bruins Chairperson Present Larry Carr Board Member Present Cindy Chavez Board Member Present David Cortese Alternate Board Member Absent Dev Davis Alternate Board Member Present Lan Diep Board Member Present Daniel Harney Alternate Board Member Present Glenn Hendricks Board Member Present Chappie Jones Board Member Present Johnny Khamis Board Member Present Sam Liccardo Vice Chairperson Absent John McAlister Alternate Board Member Absent Bob Nunez Alternate Board Member Present Teresa O'Neill Board Member Present Raul Peralez Board Member Present Rob Rennie Alternate Board Member Absent Savita Vaidhyanathan Board Member Present Ken Yeager Board Member Absent

* Alternates do not serve unless participating as a Member.

A quorum was present.

21.A MINUTES BOARD OF DIRECTORS Friday, April 21, 2017 2. PUBLIC COMMENT

Philip Kamhi, City of Palo Alto, referenced the VTA Final Transit Service Plan, expressing appreciation to VTA staff for their efforts to develop and improve the service network. Mr. Kamhi stated the City of Palo Alto requests VTA delay the approval of the Final Transit Service Plan until VTA staff is able to identify bridge funding for local shuttles to areas that will see significant reduction to fixed route transit service with the implementation of the final service plan.

Board Member Peralez arrived at the meeting and took his seat at 9:05 a.m.

Howard Miller, Chairperson, Policy Advisory Committee (PAC), reported that the PAC had the following comments regarding Agenda Item 3.3., 2016 Measure B Program Area Guidelines Overview: 1) noted the importance of leveraging Measure B as much as possible, but expressed concern with the words “local match;” 2) importance of getting the funding for local roads and streets flowing as soon as possible, and; 3) suggest looking at transfers as a way to help increase ridership.

Mona Onstead, Interested Citizen, expressed concern with the following potential route changes: 1) Route 23, noting many rely on this service for doctor appointments, trips to O’Connor Hospital and Valley Fair, and 2) Route 10, noting that San Jose State University students and residents rely on this route. Ms. Onstead requested VTA staff reconsider these route changes.

Board Member Diep arrived at the meeting and took his seat at 9:08 a.m.

Virginia Benche, Interested Citizen, expressed concern with the following: 1) changes to the bus network will have a negative impact to the disabled community’s access to paratransit service, especially those living in rural areas; 2) high cost of paratransit service to rural areas; 3) vehicles need to be maintained;, and 4) suggested there would be a significant cost savings if paratransit vehicles had multiple passengers.

Joyce, Interested Citizen, expressed concern about the proposed changes to Almaden Valley Route 63, the resulting community impacts, and loss of revenue to VTA.

3. WORKSHOP ITEMS

Agenda Items #3.1.A, 3.1.B and 3.2 were heard together.

3.1. Biennial Budget Related Items Nuria I. Fernandez, General Manager and CEO, provided a brief introduction of the staff presentation.

3.1.A. FY2018 AND FY2019 Proposed Biennial Budget

3.1.B. Fare Policy Review

Page 2 of 11 21.A MINUTES BOARD OF DIRECTORS Friday, April 21, 2017 3.2. Suspend FY17 Transfer to Capital and Initiate a Commercial Paper Program

Raj Srinath, Chief Financial Officer, provided a brief introduction of VTA staff members.

Carol Lawson, Fiscal Resources Manager, provided the staff report and a presentation entitled “Proposed Biennial Budget Fiscal Years 2018 and 2019,” highlighting: 1) Strategic Plan Core Values; 2) VTA 2017 Priorities; 3) Competing Uses for Revenue Dollars; 4) VTA Budgeted Funds; 5) Proposed Budget, and; 6) VTA Transit - Funding Structure.

Doug Jensen, Sales Tax Consultant, MuniServices, provided a presentation entitled "Santa Clara VTA Transactions & Use Tax Trends and Projections," highlighting the following: 1) Agenda; 2) Key Drivers & Trends; 3) Brick & Mortar vs Online Sales Impact; 4) City/County Sourcing Different for VTA; 5) Bottom-Up Approach; 6) Conclusion, and 7) Sales Tax Revenues.

Mr. Srinath provided an overview of the following: 1) MuniServices Growth Rate Scenarios, and; 2) Historical and Projected Growth Rates.

Public Comment

Scott Knies, Executive Director, Downtown San Jose Association, expressed concern about the proposed elimination of the Downtown Area Shuttle (DASH). Mr. Knies suggested it would be advantageous to continue DASH service during the tunneling and construction of Phase II of VTA's BART Silicon Valley Extension to San Jose. He requested the Board continue DASH as a mitigation measure during construction and consider phasing out the shuttle service after the completion of BART Phase II.

Board Member Khamis provided the following comments: 1) expressed concern about VTA’s proposed sales tax collections noting City of San Jose sales tax revenue has come in 3-7% lower than projected, and; 2) suggested VTA consider running DASH service through a subcontractor to reduce costs.

Jim Unites, Executive Manager, Transit Planning & Capitol Development, provided clarification on DASH Route 10, noting as part of VTA’s Next Network plan, it will be replaced with the Rapid 500 that travels from the Diridon Station through San Jose and connects to the Berryessa BART Station.

Board Member Peralez commented the Rapid 500 is an alternative service, but not a replacement of the DASH.

Members of the Board and staff discussed the following: 1) reason why Senate Bill (SB) 1 funds were not considered in the proposed budget; 2) accuracy of historical and projected growth rates, and; 3) anticipated budget impact from new fare structure and new route network. Page 3 of 11 21.A MINUTES BOARD OF DIRECTORS Friday, April 21, 2017 Mr. Srinath continued with the presentation, highlighting the following: 1) Projected Sales Tax Growth Rates for Various Local Jurisdictions; 2) Ridership Trend – FY15 to FY17; 3) Ridership Trend Rolling 12 Month Average; 4) Ridership Improvement Efforts; 5) New Light Rail Map; 6) Service Levels; 7) Ridership History & Projections; 8) VTA Transit Fund-Revenues, and; 9) VTA Transit – Structural Imbalance.

Chairperson Bruins stated staff would now present Agenda Item 3.1.B., Fare Policy Review.

Ali Hudda, Deputy Director Finance & Budget, provided a presentation on proposed changes to fare policies entitled "VTA Fare Policy Review," highlighting: 1) Board Adopted Fare Policy - 2003; 2) Fare Policy Review Objectives, and; 3) Public Outreach, and 4) General Feedback. Mr. Hudda introduced Laura Wolfgram, Four Nines Technology, who discussed Fare Modeling.

Mr. Hudda continued with the staff presentation, highlighting the following: 1) Proposed Fare Adjustments; 2) Intra-Operator Transfers (VTA-to-VTA); 3) Fares for Low Income Riders Community Bus Fares; 4) Eco Pass Changes; 5) Preliminary TItle VI Impacts, and 6) Summary of Proposed Fare Policy Changes. Public Comment Aboubacar Ndiaye, Working Partnerships USA, commented on the following: 1) thanked VTA staff for the thoughtful and detailed proposal to help increase access to reliable and affordable transportation for VTA riders; 2) expressed concern about fare increases and static funding for the transit systems program, and; 3) requested clarity in the spending of 2016 Measure B funding. Lupe Medrano, Interested Citizen, expressed concern about potential cuts to service and fare increases stating it will cause an extreme hardship to the disabled community. Chris Lepe, TransForm, commented on the following: 1) inquired about the impact the fare restructuring would have on ridership; 2) expressed support for free transfers if fares increase; 3) expressed concern with increasing monthly/day passes, noting this will have a significant impact on low income riders, and 4) queried about additional funding sources to avoid fare increases. Laura Tolkoff, Policy Director, San Francisco Bay Area Planning and Urban Research Association (SPUR), made the following comments: 1) expressed appreciation to VTA for its efforts to ease transit operation dollars to enhance the frequency of the core bus network; 2) suggest VTA create fare policies and categories that reduce confusion and complexity in order to make multiple trips across multiple operators; 3) encouraged VTA to take advantage of the Clipper 2.0 upgrade to simplify fares and pursue fare integration with other Page 4 of 11 21.A MINUTES BOARD OF DIRECTORS Friday, April 21, 2017 operators; 4) consider integrating on-demand vehicles and ride share to cover areas that might be lost when transitioning to Next Network, and; 5) suggested 2016 Measure B transit operation funds could be used to provide a backstop for potential revenue losses in the short term as part of that effort. Board Member Hendricks made the following comments: 1) expressed his appreciation to the Finance Department for sharing the structural challenges VTA faces; 2) the importance of being very cautious when it comes to talking about using funds from 2016 Measure B and SB1, noting those are for specific projects and will be oversubscribed; 3) challenged the Board to be disciplined and to make sure that all decisions are budget neutral, noting if VTA adds service in one area it has to be taken away from somewhere else; 4) importance of funding needs versus wants, and; 5) examine farebox and its impacts to overall budget. Members of the Board and staff discussed the following: 1) bus to light rail will have free transfers for up to 90 minutes; 2) Eco Pass excludes the premium Express Bus Routes; 3) decreasing Eco Pass existing employee tier structure for simplification; 4) Eco Pass is an employee benefit provided by employers; 5) anticipated loss of ridership due to fare increase is estimated at 3% elasticity; 6) tier pricing for premium services to meet the objectives of serving differing types of riders; 7) suggested reaching out to San Diego to complete a comparative analysis as their farebox recovery is 45%; 8) 2009 was the last fare increase; 9) request community outreach to West Valley Community College regarding increased cost of Eco Pass; 10) Title VI Equity Analysis will be looking at price changes and whether a certain population is impacted more or less than the overall ridership. The preliminary analysis has shown everyone had equal access to the retail network; 11) Clipper Card access and distribution points will increase; 12) validity of survey results; 13) 120,000 current Eco Pass users; 14) expressed concern that the extra cost for Express Service may be a disincentive to employers providing the Eco Pass; 15) employers with 50 or more employees must have a state mandated Transportation Demand Management (TDM) plan showing they have strategies and policies in place to reduce travel demand. VTA provides a cost effective way for businesses to meet the TDM; 16) requested staff provide the TDM policy so the Board understands what businesses need from VTA going forward; 17) system wide per ride costs VTA $8; 18) requested staff look into SB-1332 to see if VTA has more elasticity with regard to TDMs, noting VTA needs to be an economical choice, but the cost needs to be balanced with the consequences of being too low, and; 19) requested staff provide a breakdown of those employees that have been provided an Eco Pass, how many actually utilize the service? Chairperson Bruins thanked VTA staff for the excellent presentation. She stated this is a difficult decision. VTA is moving to a more equitable plan and the current cost of $8 per ride is not sustainable. She stated there will be

Page 5 of 11 21.A MINUTES BOARD OF DIRECTORS Friday, April 21, 2017 impacts, and VTA will do their best to handle the matter in a delicate way. She thanked the Board for their thoughtful remarks. Chairperson Bruins stated staff would now present Agenda Item 3.2., Suspend FY17 Transfer to Capital and Initiate a Commercial Paper Program.

Mr. Srinath continued with the presentation, highlighting the following: 1) VTA Transit – FY17 to FY19 After Expense Mitigations and Fare Policy Changes; 2) Proposed FY17 Mitigations; 3) Proposed FY17 Mitigations – Option 1; 4) Proposed FY17 Mitigations – Option 2; 5) Proposed Additional FY18 & FY19 Sources of Funds/Funding for Bus & Light Rail Enhancements; 6) VTA Transit – FY17 to FY19 – Option 1; 7) VTA Transit – FY17 to FY19 – Option 2; 8) Mitigation Options – Impact on Reserves; 9) Summary of Expense Mitigations & Additional Funding; 10) VTA Transit Fund – Option 1; 11) VTA Transit Fund – Option 2, and; 12) Option 3. Ms. Lawson continued with the staff presentation, highlighting the following: 1) VTA Transit - FY18 & FY19 - Projected Revenues; 2) VTA Transit - FY18 & FY19 Proposed Expenses; 3) VTA Transit - FY18 & FY19 Service Delivery Breakdown; 4) Operating Assumption Risks; 5) VTA Transit - Capital Budget – New Appropriation by Funding Source; 6) VTA Transit - Capital Budget – New Appropriation by Project Type; 7) VTA Transit – Capital Funding; 8) Proposed VTA Transit Fund Comprehensive Reserve Policy Changes; 9) Proposed Budget - Congestion Management Program (CMP); 10) CMP FY18 & FY19 Work Program; 11) CMP Member Assessments - 5% Increase per Year; 12) Proposed Budget - 2008 Measure B BART Operating Sales Tax Program; 13) Proposed Budget - 2016 Measure B Program; 14) Proposed Budget Summary; 15) Budget/Fare Outreach Schedule; 16) Budget/Fare Meeting Schedule, and; 17) Summary of Board Actions.

Members of the Board discussed the following: 1) three-year pay back plan, and; 2) anticipated funding sources are 1976 tax revenue, as well as other tax sources, to pay back the Commercial Paper loan.

Board Member Chavez made the following requests: 1) address the opportunity, if there is any, to pre-pay employer contributions to pension funds to determine whether or not VTA would have a short or long term interest opportunity due to rate differential; 2) expressed excitement that VTA is looking at the capital policy. She expressed the importance of including the operations that directly protect significant capital assets when considering the budget, and 3) make sure that when establishing reserves, based on the new policy, VTA is using cash from the previous year to determine reserve rates for the following year rather than the budget.

Board Member Hendricks referenced the Capital Policy and requested the 2016 Measure B Capital piece be funded prior to other areas being funded. He recommended, given the financial murkiness of the next two years, Option 2.

Page 6 of 11 21.A MINUTES BOARD OF DIRECTORS Friday, April 21, 2017 He stated this would only be for staff to begin the process, and any loan will come back before the Board for approval. Board Member Khamis expressed concern with high employee costs and internal operating expenses. Staff indicated VTA is looking at internal operating expenses by managing vacancies and containing health care costs. Labor contract negotiations will be up for discussion in 2018. Members of the Board and staff discussed the following: 1) fare increases are included in the budget forecast; 2) stated that borrowing funds to pay debt indicates VTA has structural problems, and suggests being more assertive; 3) Other Post Employee Benefit (OPEB) pension trust fund is fully funded; 4) increase in redline expenses from FY2017 to FY2018 is due to increased service level; 5) the actual cost of short-term borrowing is more beneficial to VTA than depleting reserve funds, and; 6) suggest incorporating proactive discussions about future budget options to avoid prolonged borrowing.

Ms. Fernandez clarified the two main components to VTA’s budget are labor and service, and those are the areas to look at going forward.

Board Member Hendricks thanked VTA staff and noted this has been a difficult challenge. He stated the Board will need discipline to set policy and give direction regarding future budgets. Board Member Hendricks stated the Board may need to look at future service hours and what can be provided based on revenue. On order of Chairperson Bruins and there being no objection, the Board of Directors reviewed and discussed the FY2018 and FY2019 Proposed Biennial Budget. On order of Chairperson Bruins and there being no objection, the Board of Directors reviewed and discussed the Fare Policy Review.

M/S/C (Hendricks/Chavez) to authorize suspension of the FY 2017 VTA Transit Fund transfer to capital in the amount of $21.9M and authorize staff to begin the process required to establish a commercial paper program to fund the local portion of the VTA Transit Fund capital program.

RESULT: APPROVED – Agenda Item #3.2 MOVER: Glenn Hendricks, Board Member SECONDER: Cindy Chavez, Board Member AYES: Bruins, Carr, Chavez, Davis, Diep, Hendricks, Jones, Khamis, O’Neill, Peralez, Vaidhyanathan NOES: None ABSENT: Yeager

NOTE: M/S/C MEANS MOTION SECONDED AND CARRIED AND, UNLESS OTHERWISE INDICATED, THE MOTION PASSED UNANIMOUSLY.

Page 7 of 11 21.A MINUTES BOARD OF DIRECTORS Friday, April 21, 2017

3.3. 2016 Measure B Program Area Guidelines Overview

Scott Haywood, Transportation Planning Manager, provided a presentation entitled "2016 Measure B Program Areas," highlighting: 1) 2016 Measure B Program Areas; 2) Local Streets & Roads - Program Description; 3) Local Streets & Roads - Proposed Guidelines; 4) Local Streets & Roads - Maintenance of Effort; 5) Local Streets & Roads - Proposed FY18 & FY19 Allocation; 6) BART Phase II - Program Description; 7) BART Phase II - Proposed Guidelines; 8) Bicycle/Pedestrian - Program Description; 9) Bicycle/Pedestrian - Proposed Guidelines; 10) Bicycle/Pedestrian - Proposed FY18 & FY19 Allocation; 11) Caltrain Grade Separation - Program Description; 12) Caltrain Grade Separation - Proposed Guidelines; 13) Caltrain Grade Separation - Implementation Plan; 14) Caltrain Grade Separation - Proposed Allocation; 15) Caltrain Corridor Capacity Improvements - Program Description; 16) Caltrain Corridor Capacity Improvements - Proposed Guidelines; 17) Caltrain Corridor Capacity Improvements - Proposed FY18 & FY19 Allocation; 18) Highway Interchanges - Program Description; 19) Highway Interchanges - Proposed Guidelines; 20) Highway Interchanges - Proposed FY18 & FY19 Allocation; 21) County Expressways - Program Description; 22) County Expressways - Proposed Guidelines; 23) County Expressways - Proposed FY18 & FY19 Allocation; 24) SR 85 Corridor - Program Description; 25) SR 85 Corridor - Proposed Guidelines; 26) SR 85 Corridor - Proposed FY18 & FY19 Allocation; 27) Transit Operations - Program Description; 28) Transit Operations - Proposed Guidelines; 29) Transit Operations - Proposed FY18 & FY19 Allocation; 30) FY18 & FY19 Proposed Allocation Summary; 31) Complete Streets Reporting Requirements, and; 32) Next Steps. Board Member Khamis left the meeting at 11:53 a.m. Public Comment Nadia Naik, Interested Citizen speaking on behalf of Vice Mayor Liz Kniss of Palo Alto, thanked VTA staff and the Board. Ms. Naik encouraged collaboration between cities and stated they look forward to working together. The following Interested Citizens addressed the Board requesting VTA remove the “at grade level” language from the proposed recommendation, noting it seems restrictive and may create problems for multi-model transportation options at intersections which are crucial for safe routes to school. They suggested giving cities design flexibility to move railroad tracks to improve safety:  Penny Ellson  Karen Schreiber  Sylvia Star-Lack  Philip Kamhi Colen Heyne, Silicon Valley Bicycle Coalition, commented on the following: 1) referenced Bicycle/Pedestrian (Bike/Ped) Education and Encouragement Carve out Formula for Distribution of Funds, stating the formula distribution yields broad Page 8 of 11 21.A MINUTES BOARD OF DIRECTORS Friday, April 21, 2017 investment to all communities, but queried if it will produce results. He requested VTA track and analyze the results and have the flexibility to move to a different distribution model, and 2) referencing the Capital Projects Competitive Grant Program, he stated he hopes there will be a significant emphasis on social equity in the scoring criteria. He stated low income communities and communities of color are more likely to use bike/ped, and suggested the funds be used to address this health crisis. Pat Burt, Interested Citizen, stated he worked to help draft 2016 Measure B Language with focus on North County Cities for Caltrain with the following objectives: 1) to complete all eight grade separations: 2) $700M would be distributed equitably among the eight separations; 3) local cost sharing and other funding would be needed; 4) a portion of funding would be available for planning, and; 5) designs would be based on cost effectiveness as well as context based issues including circulation impacts, safety impacts on adjacent built properties, impacts on Caltrain operations and recognizing grade crossings in communities. Mr. Burt recommended the staff proposal be rescinded and VTA be directed to meet with North County cities to develop grade separation funding alternatives. Peter Taskovich, Palo Alto Neighborhoods (PAN), commented on the following: 1) expressed support for the removal of “at grade level” from the grade separation language, and; 2) request 2016 Measure B funding be used to help increase Route 21 weekend frequency as well as to provide alternate shuttle service for Next Network cuts. Amanda Hui, West Valley Community Services, expressed support for the Transportation Assistance Program (TAP). She stated the program allows struggling families in Santa Clara County to look for jobs and make their doctor appointments. Mr. Lepe commented on the following: 1) stated the bike/ped transportation category has a focus on performance, and stated it would be helpful to have performance based focus for other project categories beyond that. He suggested a focus on Vehicle Miles Traveled (VMT) for reducing Vehicle Free Transport (VFT); 2) noted the importance of being flexible and leaving the door open for innovation, and; 3) encouraged continued community engagement. Ms. Tolkoff commented on the following: 1) expressed support for 2016 Measure B; 2) expressed appreciation for staff’s clarification that, with the exception of BART, the funds that become available will track the actual sales tax revenues; 3) recommend more research for bike/ped improvements be made available in the early years of 2016 Measure B in order to make significant progress towards mobility and sustainability goals, and; 4) recommend VTA adopt a policy replacing Level of Service (LOS) with VMT before making major investments in highway interchanges and expressway categories. Mathew Reed, Sacred Heart Community Services, San Jose, made the following comments: 1) expressed concern that communication is being neglected in this round of planning; 2) suggested priorities need to be re-examined due to several factors that

Page 9 of 11 21.A MINUTES BOARD OF DIRECTORS Friday, April 21, 2017 were not in place during 2016 Measure B planning, and; 3) expressed concern about the TAP, subsidies for low-income seniors and non-ADA paratransit services for seniors. Maria Ristow, Los Gatos Transportation & Parking Commission, referenced the Danville model busing program that was in the original language of 2016 Measure B, but does not appear in the staff report today. She stated this regional corridor congestion relief effort is the number one priority for Los Gatos. She reported that Los Gatos is funding a feasibility study for the project which should be completed in early 2018, with the goal of busing to begin in August of 2018 at the start of the new school year. She stated the cost was a surprise, and the program could be scaled down to a smaller pilot program if necessary. Janet Lafleur, Interested Citizen, expressed support for the Complete Streets language. She requested grade separation language not be overly restrictive by preventing good solutions that are locally necessary. Roland Lebrun, Interested Citizen, commented on the following: 1) VTA is the lead agency and knows how to plan, design and construct grade separation projects, and; 2) the primary objective is to move more people up and down the peninsula, and projects that increase Caltrain capacity as well as provide grade separation should have priority. Reginald Swilley, Interested Citizen, expressed support for keeping programs within the county to help invigorate the local business economy. Members of the Board made the following comments: 1) thanked staff for revising the guidelines as suggested at the Committees; 2) requested VTA’s support for senior mobility; 3) importance of additional communication, interaction and coordination between the cities involved and VTA regarding Caltrain grade separation; 4) Diridon Station planning should be funded prior to Caltrain electrification; 5) look at the gaps created through Next Network with DASH in downtown San Jose, specifically with respect to vulnerable communities; 6) increased service to South County is not tied to Caltrain electrification; 7) expressed concern about reimbursement on larger projects, specifically expressway projects; 8) request VTA provide a policy regarding maintenance and up-keep associated to operational costs; 9) request VTA provide a policy that looks at resource overages over the 30 year timeframe and redirect that to capital maintenance; 10) interested in accountability reporting strategies; 11) expressed concern that the small amount of bicycle funding will be split among cities without looking at regional projects; 12) expressed concern that communicating by city versus region may be less responsible; 13) suggest having a deeper conversation once grade separation gets presented; 14) suggest there should be further community outreach before the $500M for low income communities returns to the Board; 15) expressed concern that Local Streets and Roads Program funding will be capped at 2017 dollars and will not reflect sales tax receipts; 16) consider future development needs when prioritizing pavement program funding; 17) request VTA provide information as to the reason FY10-FY12 was chosen as the baseline for local streets and roads, and to understand how VTA might be accounting for anomalies; Page 10 of 11 21.A MINUTES BOARD OF DIRECTORS Friday, April 21, 2017 18) request VTA provide a policy which specifies the intent on how grade separation funds will be allocated; 19) consider a countywide bike/ped solution that manages a single education program, and; 20) expressed support for a policy encompassing the capital projects maintenance that is part of the operations cost. Chairperson Bruins thanked staff for the presentations, and encouraged Board Members to set up one on one time with staff if they have any questions. On order of Chairperson Bruins and there being no objection, the Board of Directors reviewed and discussed Draft 2016 Measure B Program Area Guidelines. Chairperson Bruins announced the next Board Meeting is Thursday, May 4, 2017, at 5:30 p.m.

4. OTHER ITEMS

4.1. ANNOUNCEMENTS There were no Announcements.

5. ADJOURN

On order of Chairperson Bruins and there being no objection, the Board of Directors Workshop/Special Meeting was adjourned at 12:23 p.m.

Respectfully submitted,

Anita McGraw, Board Assistant VTA Office of the Board Secretary

Page 11 of 11 21.B

Fiscal Years 2018 and 2019 Proposed Biennial Budget Public and Advisory Committee Outreach

COMMUNITY MEETING COMMENTS:

Five community meetings to present the Fiscal Years 2018 and 2019 Proposed Biennial Budget and Proposed Fare Policy Changes were held May 1 to May 9 in Morgan Hill, Mountain View, San Jose (two) and Sunnyvale. Fifty-six members of the public attended. The major comments from participants were as follows:

Support:  No increase in paratransit fares  Youth fare improvements, get riders at a younger age  Free 90 minute transfers between VTA bus and light rail  Eco Pass program, environmental sustainability, low cost for students

Concerns:  Rate of increase in Sr/Disabled fare versus Adult fares  Exclusion of Express Service from base Eco Pass pricing  Increase in De Anza Eco Pass pricing  Low farebox recovery ratio and high operating costs  Inclusion of for-profit universities in the Corporate category versus the Collegiate category for Eco Pass  Clipper® only transfers  Shortage of places to purchase or add value to a Clipper® Card  Length of transfer validity  Potential loss of ridership due to fare increases

Suggestions:  Discontinue discounted fares  Provide free fares for all riders  Implement an excursion pass for bus  Engage with school boards and PTSAs for potential service improvements to increase ridership

Page 1 of 2

21.B

ADVISORY COMMITTEE DISCUSSION/RECOMMENDATION:

On May 10 and May 11, the Proposed Budget was presented to the Technical Advisory Committee, Citizens’ Advisory Committee, Committee for Transportation Mobility and Accessibility, and Policy Advisory Committee. The major comments from committee members were as follows:

Support:  90 minute window for free transfers  No increase in paratransit fares  Continuation of Light Rail Excursion Pass  Simplification of Eco Pass program

Concerns:  Exclusion of Express Service from base Eco Pass pricing  Length of transfer validity  Inclusion of residential Eco Pass users in the Corporate category  Inclusion of private, for-profit universities in the Corporate category versus the Collegiate category for Eco Pass  Equity of Eco Pass tier consolidation  Ability of visitors to acquire Clipper® cards  Inability of university students to opt-out of Eco Pass program

Suggestions:  Work with convention organizers to distribute Clipper® cards for visitors  Conduct follow-up outreach to students  Implement one price for Eco Pass Corporate category that includes Express Service  Increase transfer window to at least 2 hours

Page 2 of 2

21.C

VTA Transit Updated 5-2-17 Comparison of Revenues and Expenses (Dollars in Thousands)

FY17 FY17 FY18 Variance FY19 Variance FY16 Category Current Projected Proposed from FY17 % Var Proposed from FY18 % Var

Line Actual Budget1 Actual2 Budget Projection Budget Budget 1 Fares-Transit 37,663 41,599 33,564 35,742 2,178 6.5% 40,568 4,827 13.5% 2 Fares-Paratransit3 0 0 1,234 2,328 1,094 88.6% 2,723 396 17.0% 3 1976 Half-Cent Sales Tax 205,418 216,835 210,296 215,343 5,047 2.4% 219,650 4,307 2.0% 4 TDA 98,519 101,912 99,605 101,211 1,607 1.6% 103,235 2,024 2.0% 5 Measure A Sales Tax-Oper. Asst. 37,954 40,021 38,814 44,684 5,869 15.1% 45,577 894 2.0% 6 2016 Measure B – Transit Operations 0 0 0 14,060 14,060 N/A 14,500 441 3.1% 7 STA 13,632 14,765 8,965 10,300 1,335 14.9% 10,300 0 0.0% 8 Federal Operating Grants 4,105 3,704 4,092 3,831 (261) -6.4% 3,910 79 2.1% 9 State Operating Grants 1,984 1,420 2,186 1,373 (813) -37.2% 960 (413) -30.1% 10 Investment Earnings 2,580 1,425 3,250 3,584 334 10.3% 4,526 941 26.3% 11 Advertising Income 2,515 2,258 2,522 2,800 278 11.0% 2,909 109 3.9% 12 Measure A Repayment Obligation 15,007 15,247 15,247 15,596 349 2.3% 15,499 (97) -0.6% 13 Other Income 2,937 2,556 4,539 4,173 (365) -8.1% 2,420 (1,754) -42.0% 14 Transfer to Capital Reserve4 (13,635) (21,907) 0 0 0 N/A 0 0 N/A 15 Financing Proceeds5 0 0 0 0 0 N/A 0 0 N/A 16 Total Revenue 408,680 419,836 424,313 455,024 30,711 7.2% 466,777 11,753 2.6%

17 Labor Cost 300,238 323,067 310,932 329,982 19,050 6.1% 339,746 9,764 3.0% 18 Materials & Supplies 22,949 19,374 27,913 38,191 10,278 36.8% 42,351 4,160 10.9% 19 Security 11,420 15,119 12,619 17,409 4,790 38.0% 17,880 471 2.7% 20 Professional & Special Services 5,829 7,187 6,975 8,715 1,741 25.0% 7,215 (1,501) -17.2% 21 Other Services 7,748 7,584 7,591 10,488 2,897 38.2% 10,831 343 3.3% 22 Fuel 7,830 12,517 8,354 10,716 2,363 28.3% 12,022 1,306 12.2% 23 Traction Power 4,241 3,898 4,198 5,312 1,114 26.5% 6,189 877 16.5% 24 Tires 2,068 2,266 2,266 2,387 121 5.3% 2,524 137 5.7% 25 Utilities 3,105 2,895 3,195 3,593 398 12.5% 3,712 119 3.3% 26 Insurance 4,923 5,752 6,012 6,467 456 7.6% 6,862 394 6.1% 27 Data Processing 3,916 4,746 4,746 5,022 277 5.8% 4,987 (35) -0.7% 28 Office Expense 425 425 425 425 (1) -0.1% 412 (13) -2.9% 29 Communications 1,562 1,606 1,606 1,620 14 0.9% 1,644 24 1.5% 30 Employee Related Expense 1,048 1,031 1,023 1,124 101 9.9% 1,124 0 0.0% 31 Leases & Rents 919 791 791 904 114 14.4% 904 0 0.0% 32 Miscellaneous 911 714 714 878 164 23.0% 860 (19) -2.1% 33 Reimbursements (36,374) (38,769) (31,536) (36,555) (5,019) 15.9% (37,332) (777) 2.1% 34 Subtotal Operating Expense 342,758 370,201 367,822 406,679 38,857 10.6% 421,928 15,249 3.7% 35 Paratransit3 19,805 26,184 20,627 24,671 4,044 19.6% 26,338 1,667 6.8% 36 Caltrain 8,414 8,390 8,390 8,967 578 6.9% 8,967 0 0.0% 37 Altamont Corridor Express 4,838 5,323 4,888 5,177 289 5.9% 5,307 129 2.5% 38 Highway 17 Express 270 384 333 370 37 11.0% 381 11 3.0% 39 Monterey-San Jose 35 35 35 35 0 0.0% 35 0 0.0% 40 Contribution to Other Agencies 890 2,624 2,624 998 (1,626) -62.0% 1,006 8 0.8% 41 Debt Service 21,351 21,641 21,641 21,581 (61) -0.3% 22,233 652 3.0% 42 Subtotal Other Expense 55,603 64,581 58,539 61,799 3,261 5.6% 64,267 2,468 4.0% 43 Operating and Other Expense 398,361 434,782 426,361 468,478 42,118 9.9% 486,195 17,717 3.8% 44 Transfer to Capital Reserve 0 0 0 5,000 5,000 N/A 5,000 0 0.0% 45 Contingency 0 665 0 2,000 2,000 N/A 2,000 0 0.0% 46 Total Expense/Contingency/Cap Trsf 398,361 435,447 426,361 475,478 49,118 11.5% 493,195 17,717 3.7% 46 Operating Balance 10,319 (15,611) (2,047) (20,454) (26,418) Note: Totals and percentages may not be precise due to independent rounding

1 Reflects Adopted Budget approved by the Board on June 4, 2015 and $4.0M, $2.5M, and $5.3M augmentations approved by the Board on October 1, 2015, October 6, 2016, and November 3, 2016, respectively 2 Projection as of March 27, 2017 3 Beginning in November 2016 Paratransit Fares are reported separately. Previously these revenues were reported as a net against paratransit expense 4 Beginning in FY18 Transfer to Capital Reserve is reflected as an expenses instead of a reduction of revenues 5 Financing Proceeds removed in FY18 & FY19 pending determination of optimal mix of short-term financing and reserves to address projected deficit 1

21.C

VTA Transit Updated 5-2-17 Sources and Uses of Funds Summary (Dollars in Thousands)

FY17 FY18 FY19 FY16 Line Description Projected Proposed Proposed Actual Actual1 Budget Budget Operating Balance 1 Total Operating Revenues 408,680 424,313 455,0242 466,7772 2 Total Operating Expenses (398,361) (426,361) (475,478) (493,195) 3 Operating Balance 10,319 (2,047) (20,454) (26,418)

Operating Balance Transfers 4 Operating Balance (Line 3) 10,319 (2,047) (20,454) (26,418) 5 Transfers From/(To) Sales Tax Stabilization Fund 0 2,047 0 0 6 Transfers From/(To) Operating Reserve (1,210) 0 20,454 26,418 7 Transfers From/(To) Capital Reserve (9,109) 0 0 0 8 Balance to Undesignated Reserves 0 0 0 0

Operating Reserve 9 Beginning Operating Reserve 62,937 64,147 64,147 43,693 10 Transfer From/(To) Operating Balance 1,210 0 (20,454) (26,418) 11 Ending Operating Reserve 64,147 64,147 43,693 17,275

12 Operating Reserve %3 14.7% 13.5% 8.9% 3.4%4

Note: Totals and percentages may not be precise due to independent rounding

1 Projection as of March 27, 2017 2 Updated to reflect removal of Financing Proceeds pending determination of optimal mix of short-term financing and reserves to address projected deficit 3 Line 11 divided by subsequent fiscal year budgeted Operating Expenses (Line 2) 4 Based on projected FY20 Operating Expenses 2

21.C

VTA Transit Schedule of FY 2018 & FY 2019 Appropriation (Dollars in Thousands)

FY 2018 & FY 2019 Funding Source

Project

Total

VTA VTA

State

Other

Transit

Federal

1. 40' Bus Procurement FY18 44,000 0 0 11,000 55,000 2. 60' Articulated Bus Procurement 6,944 0 0 1,736 8,680 3. Automatic Passenger Counters (APC) 0 0 0 1,835 1,835 4. Paratransit Fleet Program FY18 4,195 0 0 1,049 5,244 5. Upgrade Fault Monitoring System on Light Rail Vehicles 2,255 0 0 564 2,819 Revenue Vehicles & Equipment Total 57,394 0 0 16,184 73,578 6. Non-Revenue Vehicle Procurement FY18 0 0 0 1,300 1,300 Non-Revenue Vehicles Total 0 0 0 1,300 1,300 7. Cerone Emergency Generator Replacement 0 0 0 1,260 1,260 8. Facilities and Equipment Emergency Repair FY18 0 0 0 750 750 9. Facilities Maintenance Equipment Program FY18 0 0 0 1,770 1,770 10. HVAC Replacement Program FY18 0 0 0 1,944 1,944 11. Painting Management Program FY18 0 0 0 800 800 12. Paving Management Program FY18 0 0 0 1,800 1,800 13. Procure and Install Wheel Truing Machine 0 0 0 3,210 3,210 14. Roofing Management Program FY18 0 0 0 1,300 1,300 15. SCADA and TVM Network Separation 0 0 0 3,565 3,565 16. Sustainability Program FY18 0 0 0 700 700 Operating Facilities & Equipment Total 0 0 0 17,099 17,099 17. Bridge Repair/Hamilton Structural Stabilization 320 0 0 80 400 18. Guadalupe Overhead Catenary System Rehab 6,460 0 0 1,615 8,075 19. Rail Replacement and Rehabilitation FY18 13,680 0 0 3,420 17,100 20. Roadway Protection System for Light Rail 1,551 0 0 388 1,939 21. Track Intrusion Abatement FY18 1,600 0 0 400 2,000 22. Upgrade Highway Rail Grade Crossing Control Equip. 4,368 0 0 1,092 5,460 Light Rail Way, Power & Signal Total 27,979 0 0 6,995 34,974 23. Bus Stop Improvement Program FY18 0 0 2,000 0 2,000 24. Diridon Transportation Facilities Master Plan 0 0 3,500 1,500 5,000 25. North San Jose Transportation Improvements 0 0 3,000 0 3,000 26. Pedestrian Swing Gates Replacement 2,720 0 0 680 3,400 27. Shelters at LR Stations--Tasman, Orchard, Component 0 0 1,800 0 1,800 28. Transit Center Park & Ride Upgrades FY18 0 0 0 500 500 29. Vasona Corridor Pedestrian Back Gates 1,280 0 0 320 1,600 Passenger Facilities Total 4,000 0 10,300 3,000 17,300 30. Emergency IT Infrastructure Replacement 0 0 0 240 240 31. Integrated Land Use-Transportation Model 0 0 75 0 75 32. Mobile Network Upgrade 0 0 0 550 550 33. Office 365 Deployment 0 0 0 350 350 34. PCI and EMV Compliance Enhancements 0 0 0 1,500 1,500 35. SCADA Control Center and System Replacement 3,015 0 0 754 3,769 36. SCADA Middleware Replacement 1,150 0 0 288 1,438 3

21.C

FY 2018 & FY 2019 Funding Source

Project

Total

VTA VTA

State

Other

Transit

Federal

37. Survey and Data Collection Program 0 0 220 220 440 38. Virtual Transit Ride Visualization APP 0 0 50 50 100 39. VTA Big Data Analytics Program 0 0 50 50 100 40. VTA Gigabit Network Project 0 0 0 470 470 Information Sys & Technology Total 4,166 0 395 4,471 9,032 41. Bus-on-Shoulder Feasibility Study 0 288 0 72 360 42. Caltrain Capital – Annual Local Match 0 0 0 10,000 10,000 43. Capital Contingency 0 0 2,000 2,000 4,000 44. Condition Assessment for Rail & Bus Infrastructure 0 0 0 550 550 45. Express Bus Service Plan 0 380 0 95 475 46. Facilities Assessments 0 0 0 550 550 47. Innovative First/Last-Mile Services Program 0 0 3,000 0 3,000 48. North Bayshore Transportation Study 0 0 1,250 0 1,250 49. VA Pilot Smart Shuttle 0 0 995 370 1,365 Miscellaneous Total 0 668 7,245 13,637 21,550

Grand Total 93,539 668 17,940 62,686 174,833 Note: Totals may not be precise due to independent rounding

21.C

2000 Measure A Transit Improvement Program Updated 5-2-17 Comparison of Revenues and Expenses (Dollars in Thousands)

FY17 FY17 FY18 Variance FY19 Variance FY16 Category Adopted Projected Proposed from FY17 % Var Proposed from FY18 % Var

Line Actual Budget Actual1 Budget Projection Budget Budget

1 2000 Half-Cent Sales Tax 205,636 216,835 210,296 215,343 5,047 2.4% 219,650 4,307 2.0% 2 Federal BABs Subsidy2 8,748 8,722 8,753 8,750 (2) 0.0% 8,750 0 0.0% 3 Investment Earnings 7,088 4,531 7,056 5,256 (1,800) -25.5% 5,486 230 4.4% 4 Other Income 366 404 407 391 (16) -3.8% 395 4 1.1% 5 Total Revenue 221,837 230,492 226,511 229,741 3,229 1.4% 234,282 4,541 2.0%

6 VTA Operating Assistance3 37,954 40,021 38,814 44,684 5,869 15.1% 45,577 894 2.0% 7 Professional & Special Services 634 723 555 790 236 42.5% 1,002 211 26.7% 8 Miscellaneous 9 28 27 27 0 0.0% 27 0 0.0% 9 Contributions to Other Agencies 218 1,190 1,021 673 (348) -34.1% 0 (673) -100.0% 10 Debt Service 30,810 27,431 27,431 38,638 11,207 40.9% 46,200 7,562 19.6% 11 Repayment Obligation 15,007 15,247 15,247 15,596 349 2.3% 15,499 (97) -0.6% 12 Total Expense 84,631 84,639 83,094 100,407 17,313 20.8% 108,304 7,896 7.9%

13 Revenues Over (Under) Expenses 137,206 145,853 143,417 129,333 125,978 Note: Totals and percentages may not be precise due to independent rounding Sources and Uses of Funds Summary (Dollars in Thousands)

FY17 FY18 FY19 FY16 Line Description Projected Proposed Proposed Actual Actual1 Budget Budget

1 Total Revenues 221,837 226,511 229,741 234,282 2 Total Non-Project Expenses (84,631) (83,094) (100,407) (108,304) 3 Revenues Over (Under) Expenses 137,206 143,417 129,333 125,978

4 Project Expenditures 523,358 411,950 501,247 293,679 5 Less: Funding from Grants & Other Sources (255,800) (173,200) (174,711) (90,737) 6 2000 Measure A Share of Capital 267,558 238,750 326,536 202,942

7 Beginning Available for Projects4 560,260 429,907 334,573 137,371 8 Revenues Over (Under) Expenses 137,206 143,417 129,333 125,978 9 2000 Measure A Share of Capital (267,558) (238,750) (326,536) (202,942) 10 Ending Available for Projects3 429,907 334,573 137,371 60,407 Note: Totals may not be precise due to independent rounding

1 Projection as of March 27, 2017 2 Represents remittance from the federal government for a portion of the interest cost for 2010 Sales Tax Revenue Bonds, 2010 Series A, Build America Bonds (BABs) which were issued in November 2010 3 FY 2018 and FY 2019 represents 20.75% of tax 4 Undesignated Net Assets plus Remaining Bond Proceeds 5

21.C

2000 Measure A Transit Improvement Program Schedule of FY 2018 & FY 2019 Appropriation (Dollars in Thousands)

FY 2018 & FY 2019 Funding Source

Project al

Total

2000

Other

Feder

Measure A

1. Berryessa Extension Project - SVBX 66,811 0 105,230 172,041 2. SVRT Project Development After FY09 0 0 214,568 214,568 SVRT Program Total 66,811 0 319,798 386,609

3. Capitol Expressway Light Rail to Eastridge Phase II 0 130,000 98,800 228,800 4. SR 85 Major Investment Study 0 1,400 0 1,400 Light Rail Program Total 0 131,400 98,800 230,200

5. Caltrain Electrification - Early Investment Program 0 0 20,000 20,000 Commuter Rail Program Total 0 0 20,000 20,000

6. Capitalized Interest and Other Bond Costs 0 0 64,900 64,900 Measure A Programwide Total 0 0 64,900 64,900

Grand Total 66,811 131,400 503,498 701,709 Note: Totals may not be precise due to independent rounding

21.C

Congestion Management Program Comparison of Revenues and Expenses (Dollars in Thousands)

FY17 FY17 FY18 Variance FY19 Variance FY16 % % Category Adopted Projected Proposed from FY17 Proposed from FY18

Line Actual Var Var Budget Actual1 Budget Projection Budget Budget

1 Federal Operating Grants 1,887 1,765 1,765 2,095 330 18.7% 2,136 41 2.0% 2 State Operating Grants 821 1,168 1,238 903 (335) -27.0% 908 5 0.5% 3 Investment Earnings 16 12 7 12 5 71.4% 12 0 0.0% 4 Member Agency Fees 2,407 2,407 2,407 2,528 120 5.0% 2,654 126 5.0% 5 Other Income 155 220 150 143 (7) -4.4% 148 4 3.0% 6 Total Revenue 5,286 5,572 5,567 5,681 114 2.0% 5,858 177 3.1% 7 Professional & Special Services 1,176 1,569 1,569 1,300 (269) -17.2% 1,412 112 8.6% 8 Other Services 14 12 12 15 3 25.0% 16 1 6.7% 9 Data Processing 7 13 7 7 0 0.0% 7 0 0.0% 10 Contribution to Other Agencies 210 86 149 300 151 101.0% 300 0 0.0% 11 VTA Staff Services 4,221 4,138 4,138 4,333 195 4.7% 4,080 (252) -5.8% 12 Total Expense 5,628 5,818 5,875 5,954 79 1.3% 5,815 (139) -2.3%

13 Revenues Over (Under) Expenses (341) (245) (308) (273) 43 Note: Totals and percentages may not be precise due to independent rounding

Sources and Uses of Funds Summary (Dollars in Thousands)

FY17 FY18 FY19 FY16 Line Description Projected Proposed Proposed Actual Actual1 Budget Budget

1 Total Revenues 5,286 5,567 5,681 5,858 2 Total Expenses (5,628) (5,875) (5,954) (5,815) 3 Revenues Over (Under) Expenses (341) (308) (273) 43

4 Beginning Fund Balance 1,499 1,158 850 577 5 Revenues Over (Under) Expenses (341) (308) (273) 43 6 Ending Fund Balance 1,158 850 577 620

Note: Totals and percentages may not be precise due to independent rounding

1 Projection as of March 27, 2017 7

21.C

Congestion Management Program Member Assessments

Member Agency FY 2018 FY 2019 County of Santa Clara $285,325 $299,591 Campbell 53,055 55,708 Cupertino 81,510 85,585 Gilroy 39,656 41,639 Los Altos 26,172 27,481 Los Altos Hills 6,979 7,328 Los Gatos 36,122 37,928 Milpitas 80,835 84,877 Monte Sereno 2,098 2,203 Morgan Hill 26,360 27,678 Mountain View 131,271 137,835 Palo Alto 148,545 155,972 San Jose 823,142 864,299 Santa Clara 217,428 228,299 Saratoga 22,775 23,914 Sunnyvale 261,040 274,092 Subtotal: $2,242,313 $2,354,429 VTA - Managing Agency Contribution 285,325 299,591 TOTAL: $2,527,638 $2,654,020

21.C

VTP Highway Improvement Program Schedule of FY 2018 & FY 2019 Appropriation (Dollars in Thousands)

FY 2018 & FY 2019 Funding Source

Project

Total

State

Other

Federal

1. Bascom Corridor Complete Streets Project 155 155 40 350 2. Countywide Noise Abatement Program 0 0 4,000 4,000 3. I-280 NB Braided Ramps Btwn Foothill Expwy and SR 85 0 0 3,000 3,000 4. I-280/Winchester Boulevard Improvements 0 0 1,500 1,500 5. I-280/Wolfe Rd Interchange Improvements 0 0 2,000 2,000 6. I-680 Sound Walls 0 4,900 0 4,900 7. King Road Ped Safety and Transit Access Improvements 607 0 79 686 8. Silicon Valley Express Lanes-Electronic Toll System (ETS) 0 0 5,132 5,132 9. Silicon Valley Express Lanes-US 101/SR 85 Phase 3 0 0 8,700 8,700 10. Silicon Valley Express Lanes-US 101/SR 85 Phase 4 0 0 12,600 12,600 11. SR 237 Express Lanes - Mathilda Ave to SR 85 0 0 2,000 2,000 12. SR 237 Express Lanes - Phase II Extension 0 0 18,022 18,022 13. SR 237/US 101 Mathilda Interchange 0 0 6,154 6,154 14. SR 87 Technology-Based Corridor Improvements 0 0 3,000 3,000 15. Story/Keyes Corridor Complete Streets Project 415 415 108 938 16. Tasman Corridor Complete Streets Project 188 188 49 425 17. Traffic Analysis Software Procurement 0 0 145 145 18. US 101/SR 25 Interchange Improvements 0 0 4,000 4,000 19. US 101/Zanker/Skyport/N 4th Intrchng Improvements 0 0 2,000 2,000 Grand Total 1,365 5,658 72,528 79,551 Note: Totals may not be precise due to independent rounding

21.C

Joint Development Program Comparison of Revenues and Expenses (Dollars in Thousands)

FY17 FY17 FY18 Variance FY19 Variance FY16 % % Category Adopted Projected Proposed from FY17 Proposed from FY18

Line Actual Var Var Budget Actual1 Budget Projection Budget Budget

1 Investment Earnings 539 156 375 455 80 21.3% 569 114 25.0% 2 Property Rental 475 371 633 549 (84) -13.3% 460 (89) -16.1% 3 Total Revenue 1,015 527 1,008 1,004 (4) -0.4% 1,029 25 2.5%

4 Professional & Special Services 155 215 145 390 245 169.0% 190 (200) -51.3% 5 Miscellaneous 17 15 15 10 (5) -33.3% 10 0 0.0% 6 Total Expense 171 230 160 400 240 150.0% 200 (200) -50.0%

7 Revenues Over (Under) Expenses 843 297 848 604 829 Note: Totals and percentages may not be precise due to independent rounding Sources and Uses of Funds Summary (Dollars in Thousands)

FY17 FY18 FY19 FY16 Line Description Projected Proposed Proposed Actual Actual1 Budget Budget 1 Total Revenues 1,015 1,008 1,004 1,029 2 Total Expenses (171) (160) (400) (200) 3 Revenues Over (Under) Expenses 843 848 604 829

4 Beginning Net Assets 28,366 29,209 30,057 30,661 5 Revenues Over (Under) Expenses 843 848 604 829 6 Ending Net Assets 29,209 30,057 30,661 31,490

Note: Totals and percentages may not be precise due to independent rounding Schedule of FY 2018 & FY 2019 Appropriation (Dollars in Thousands)

FY 2018 & FY 2019 Funding Source

Project

Total

Joint

Other

Development

1. Joint Development Predevelopment Activities 2,500 300 2,800 Grand Total 2,500 300 2,800

1 Projection as of March 27, 2017

21.C

Silicon Valley Express Lanes Program Comparison of Revenues and Expenses (Dollars in Thousands)

FY17 FY17 FY18 Variance FY19 Variance FY16 % % Category Adopted Projected Proposed from FY17 Proposed from FY18

Line Actual Var Var Budget Actual1 Budget Projection Budget Budget

1 Toll Revenues 1,274 1,166 1,166 1,150 (16) -1.4% 1,250 100 8.7% 2 Investment Earnings 43 20 20 25 5 25.0% 25 0 0.0% 3 Total Revenue 1,317 1,186 1,186 1,175 (11) -0.9% 1,275 100 8.5%

4 Professional & Special Services 751 902 675 877 202 29.9% 908 31 3.5% 5 Utilities 2 4 3 2 (1) -33.3% 2 0 0.0% 6 Insurance 0 2 0 0 0 N/A 0 0 N/A 7 Office Expense 1 0 0 0 0 N/A 0 0 N/A 8 Communications 0 8 0 0 0 N/A 2 2 N/A 9 Miscellaneous 0 5 0 5 5 N/A 5 0 0.0% 10 VTA Staff Services 189 150 180 200 20 11.1% 206 6 3.0% 11 Contingency 0 0 0 70 70 N/A 70 0 0.0% 12 Subtotal Operating Expense 943 1,071 858 1,154 296 34.5% 1,193 39 3.4% 13 Contribution to Other Agencies-Ph2 Upgrades 0 0 0 320 320 N/A 0 (320) -100.0% 14 Contribution to Other Agencies-Ph2 Funding 0 0 0 500 500 N/A 0 (500) -100.0% 15 Subtotal Program Expense 0 0 0 820 820 N/A 0 (820) -100.0% 16 Total Expense 943 1,071 858 1,974 1,116 130.1% 1,193 (781) -39.6%

17 Revenues Over (Under) Expenses 373 115 328 (799) 82 Note: Totals and percentages may not be precise due to independent rounding Sources and Uses of Funds Summary (Dollars in Thousands)

FY17 FY18 FY19 FY16 Line Description Projected Proposed Proposed Actual Actual1 Budget Budget

1 Total Revenues 1,317 1,186 1,175 1,275 2 Total Expenses (943) (858) (1,974) (1,193) 3 Revenues Over (Under) Expenses 373 328 (799) 82

4 Beginning Net Assets 1,991 2,364 2,692 1,893 5 Revenues Over (Under) Expenses 373 328 (799) 82 6 Ending Net Assets 2,364 2,692 1,893 1,975 Note: Totals may not be precise due to independent rounding

1 Projection as of March 27, 2017

21.C

2008 Measure B—BART Operating Sales Tax Program Comparison of Revenues and Expenses (Dollars in Thousands)

FY17 FY17 FY18 Variance FY19 Variance FY16 % % Category Adopted Projected Proposed from FY17 Proposed from FY18

Line Actual Var Var Budget Actual1 Budget Projection Budget Budget

1 Sales Tax Revenues 49,262 51,733 50,471 51,682 1,211 2.4% 52,716 1,034 2.0% 2 Investment Earnings 2,981 2,104 2,425 4,358 1,933 79.7% 5,994 1,636 37.5% 3 Total Revenue 52,243 53,837 52,896 56,040 3,144 5.9% 58,709 2,669 4.8%

4 Security 0 0 0 2,523 2,523 N/A 5,240 2,717 107.7% 5 Professional & Special Services 144 256 192 196 4 2.1% 196 0 0.0% 6 Other Services 0 0 0 350 350 N/A 800 450 128.6% 7 Insurance 0 0 0 86 86 N/A 178 92 107.0% 8 Contribution to Other Agencies 0 0 0 9,100 9,100 N/A 13,000 3,900 42.9% 9 VTA Staff Time 0 0 0 705 705 N/A 1,455 750 106.4% 10 Transfer to Capital Reserve 0 0 0 1,710 1,710 N/A 3,875 2,165 126.6% 11 Total Expense 144 256 192 14,670 14,478 7560.4% 24,744 10,074 68.7%

12 Revenues Over (Under) Expenses 52,099 53,581 52,705 41,370 33,966

Note: Totals and percentages may not be precise due to independent rounding

Sources and Uses of Funds Summary (Dollars in Thousands)

FY17 FY18 FY19 FY16 Line Description Projected Proposed Proposed Actual Actual1 Budget Budget

1 Total Revenues 52,243 52,896 56,040 58,709 2 Total Expenses (144) (192) (14,670) (24,744) 3 Revenues Over (Under) Expenses 52,099 52,705 41,370 33,966

4 Beginning Net Assets 135,416 187,515 240,220 281,590 5 Revenues Over (Under) Expenses 52,099 52,705 41,370 33,966 6 Ending Net Assets 187,515 240,220 281,590 315,556

Note: Totals may not be precise due to independent rounding

1 Projection as of March 27, 2017 12

21.C

2016 Measure B Program Updated 5-2-17 Funding Allocation (Dollars in Millions)

FY18 FY19 Administrative Costs 3.301 3.30

Program Area Local Streets & Roads 40.00 40.00

2 Transit Operations Enhance Core Network 12.00 12.00 Innovative Transit Models 3.00 Expand Mobility & Affordable Fares 2.50 2.50 Improve Amenities 1.30 Bicycle & Pedestrian Education/Encouragement 2.50

ANNUAL PROPORTIONANNUAL Capital Projects 13.33 Planning Projects 0.83

BART Phase II 0.00 Caltrain Grade Separation 7.00

Caltrain Corridor Capacity 2.00 SR 85 Corridor 12.00

NEED/ County Expressways 50.00

CAPACITY BASED CAPACITY Highway Interchanges 87.00 Total 294.56

1 Includes reimbursement of $1.65M to the VTA Transit Fund for payment made to the Registrar of Voters for 2016 Measure B’s share of costs of the November 8, 2016 General Election 2 Allocation based upon the total allocation of Program Area divided by 30 years in the measure 13

21.D

Resolution No.

RESOLUTION OF THE BOARD OF DIRECTORS OF THE SANTA CLARA VALLEY TRANSPORTATION AUTHORITY (VTA) ADOPTING A BIENNIAL BUDGET OF VTA FOR THE PERIOD JULY 1, 2017 THROUGH JUNE 30, 2019 (FY 2018 AND FY 2019)

WHEREAS:

1. Section 100071(b) of the California Public Utilities Code requires the Board of Directors to adopt an annual budget for VTA.

2. Pursuant to Section 11-2(d) of the VTA Administrative Code, the General Manager has proposed that the Board of Directors adopt a biennial (two-year) budget.

3. The Board of Directors desires to adopt a biennial budget for the period July 1, 2017 through June 30, 2019 (FY 2018 and FY 2019).

4. Pursuant to Section 11-2(a) of the VTA Administrative Code the General Manager presented the FY 2018 and FY 2019 Proposed Budget to the Board of Directors, and provided a copy to each City Manager in the County of Santa Clara, and to the County Executive prior to May 15, 2017.

5. The Proposed Budget was reviewed by the Administration and Finance Committee on May 18, 2017, and by the Board of Directors on April 21 and June 1, 2017, and at public meetings conducted throughout the County.

6. The Proposed Budget includes all administrative, operational and capital expenses for the Congestion Management Program together with the apportionment of Congestion Management Program expenses by levy against the Managing Agency and each Member Agency to the extent necessary to fund the Congestion Management Program.

7. A list of employee position classifications and pay ranges is included in the Proposed Budget, and the amount of funds budgeted for wages, salaries and benefits for FY 2018 and FY 2019 is based upon VTA’s position classification and pay ranges and is set forth in the Statement of Revenues and Expenses in the Proposed Budget.

8. The General Manager proposes an Operating Budget for the VTA Transit Fund for FY 2018 in the amount of $475,478,236 and for FY 2019 in the amount of $493,195,217.

9. The General Manager proposes a Capital Budget for the VTA Transit Fund for FY 2018 in the amount of $174,833,000.

10. The General Manager proposes an Operating Budget for the 2000 Measure A Transit Improvement Program Fund for FY 2018 in the amount of $100,407,292 and for FY 2019 in the amount of $108,303,638.

Page 1 of 4 21.D

11. The General Manager proposes a Capital Budget for the 2000 Measure A Transit Improvement Program Fund for FY 2018 in the amount of $701,709,000.

12. The General Manager proposes an Operating Budget for the Congestion Management Program Fund for FY 2018 in the amount of $5,953,995 and for FY 2019 in the amount of $5,814,918.

13. The General Manager proposes a Capital Budget for the VTP Highway Improvement Program Fund for FY 2018 in the amount of $79,551,021.

14. The General Manager proposes an Operating Budget for the Joint Development Program Fund for FY 2018 in the amount of $400,000 and for FY 2019 in the amount of $200,000.

15. The General Manager proposes a Capital Budget for the Joint Development Program Fund for FY 2018 in the amount of $2,800,000.

16. The General Manager proposes an Operating Budget for the Silicon Valley Express Lanes Program Fund for FY 2018 in the amount of $1,974,000 and for FY 2019 in the amount of $1,193,000.

17. The General Manager proposes an Operating Budget for the 2008 Measure B—BART Operating Sales Tax Program Fund for FY 2018 in the amount of $14,669,600 and for FY 2019 in the amount of $24,743,600.

18. The General Manager proposes a Program Budget for the 2016 Measure B Program Fund for FY 2018 in the amount of $294,560,000.

19. The General Counsel, pursuant to Section 6-2 of the VTA Administrative Code has prepared and recommended a Budget for the Office of General Counsel for FY 2018 and for FY 2019.

NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Santa Clara Valley Transportation Authority that:

1. The Proposed Biennial Budget for the Santa Clara Valley Transportation Authority (incorporated herein as though set forth at length), is hereby revised as stated in the attached Board Memorandum and adopted as VTA’s budget for FY 2018 and FY 2019.

2. Effective July 1, 2017, positions may be authorized and filled, as required, by the General Manager and General Counsel, as appropriate, provided that total VTA-wide budget is not exceeded.

3. As necessary for efficient administration, position classifications may be added, modified, or deleted and salary ranges adjusted with the approval of the General Manager or General Counsel, as appropriate, provided that the changes are in accordance with applicable VTA personnel policies and procedures and are consistent with pay practices in the transportation industry. Such changes shall include pay and

Page 2 of 4 21.D

classification adjustments arising from agreements between VTA and its recognized labor organizations.

4. Operating appropriations will expire at the end of each fiscal year.

5. Capital and Program appropriations which are not expended during the fiscal year, shall carry over to successive fiscal years until the projects/programs are completed or otherwise terminated.

6. The VTA locally funded portion of the VTA Transit Fund capital appropriation carry over shall be set-aside as a designation of Unrestricted Net Assets in the Comprehensive Annual Financial Report.

7. The budget shall consist of eight Funds: the VTA Transit Fund, the 2000 Measure A Transit Improvement Program Fund, the Congestion Management Program Fund, the VTP Highway Improvement Program Fund, the Joint Development Program Fund, the Silicon Valley Express Lanes Program Fund, the 2008 Measure B—BART Operating Sales Tax Program Fund, and the 2016 Measure B Program Fund. For Operating and Capital Budgets, the General Manager may reallocate appropriations between budget types (Operating or Capital) and budget units (Projects or Cost Centers) within each Fund up to the limits of each Fund’s annual appropriation. Any net increase in authorized appropriations to any Fund (including an allocation from reserves) shall require an affirmative vote of at least eight Directors.

8. The FY 2018 and FY 2019 Funding Allocations by Program Area and sub-area for the 2016 Measure B Program are hereby approved.

9. The Recommended Assessments of member agencies for the Congestion Management Program are hereby approved.

PASSED AND ADOPTED by the Santa Clara Valley Transportation Authority Board of Directors on June 1, 2017 by the following vote:

AYES:

NOES:

ABSENT:

______Jeannie Bruins, Chairperson Board of Directors

Page 3 of 4 21.D

I HEREBY CERTIFY AND ATTEST that the foregoing resolution was duly and regularly introduced, passed and adopted by the vote of a majority of the Board of Directors of the Santa Clara Valley Transportation Authority, California, at a meeting of said Board of Directors on the date indicated, as set forth above.

Date: ______

______Elaine Baltao, Secretary Board of Directors

APPROVED AS TO FORM:

______Robert Fabela General Counsel

Page 4 of 4 22

Date: May 12, 2017 Current Meeting: May 18, 2017 Board Meeting: June 1, 2017

BOARD MEMORANDUM

TO: Santa Clara Valley Transportation Authority Administration & Finance Committee

THROUGH: General Manager, Nuria I. Fernandez

FROM: Chief Financial Officer, Raj Srinath

SUBJECT: Fare Policy Review

Policy-Related Action: Yes Government Code Section 84308 Applies: No

ACTION ITEM

RECOMMENDATION:

Recommend that the VTA Board of Directors:

1. Adopt a finding that a fare increase is necessary to meet operating expenses, including employee wages and fringe benefits and purchasing or leasing supplies, equipment, or materials. 2. Invoke a Statutory Exemption under CEQA, P. R.C. §21080(b)(8) and CEQA Guidelines Section 15273(a) (Rates, Tolls, Fares and Charges) for the purpose of modifying and increasing fares. 3. Adopt a resolution establishing rates and fares for VTA bus, light rail, and paratransit services effective January 1, 2018. 4. Adopt a resolution establishing rates and fares for VTA bus, light rail, and paratransit services effective January 1, 2019. BACKGROUND:

VTA is designing a more useful transit network that will meet the goals of increasing ridership, cost-effectiveness and regional connections. The last significant change to VTA fares took effect in 2009, when VTA increased the base fare from $1.75 to $2.00 and also raised Eco Pass fares by approximately 20%. Since then, VTA’s cost of providing service has increased whereas VTA's share of operating expenses recovered from fares (Fare Box Recovery Ratio) has declined. Attachment A provides a summary of VTA fares over the past decade. At the January Board meeting, staff outlined the need for the review of VTA’s fare policy as well as the six major areas in the fare policy for review, specifically an increase in the base fares, Youth fares,

free VTA-VTA transfers, fares for Low Income riders, Community Bus fares, and Eco Pass fares. DISCUSSION:

Since the January 2017 Board meeting, VTA staff have attended nine community meetings across the county in coordination with the outreach efforts conducted for the service changes resulting from the redesign of VTA’s bus network. In addition to the community meetings, VTA conducted an online survey to receive public input on four of the major areas in the fare policy review, including an increase in the base fares, free VTA-VTA transfers, Community Bus fares, and Youth fares. VTA received 2,457 completed surveys. VTA staff initiated meetings with Eco Pass participants in a separate series of meetings commencing the week of April 17th. Feedback from the general public has been generally positive, with the majority agreeing with or not objecting to raising the base fare to provide free transfers and reduced fares for youth. We have received a few concerns about the impact of increased fares on seniors with fixed incomes, and the availability of Clipper cards. Staff has analyzed the impact of the proposed changes and refined the proposals as discussed below. VTA staff presented this information to the Board at the April Board Workshop and will hold an additional five community meetings in May 2017 to present and discuss proposed fare policy changes.

Base Fare Adjustment

VTA has experienced increased costs in providing service but has not had a fare increase since 2009. Staff projects a fiscal deficit for FY 2017 in the range of $20-25 million. Many of the Bay Area agencies have either already approved fare increases or are in the process of doing so. VTA staff reviewed two scenarios to increase the base fare by approximately 12.5% to 25% (i.e. the adult single ride would increase from $2.00 to $2.25 or $2.50) along with increases in the associated fares such as the Day Pass and the Monthly Pass. Given the magnitude of the financial challenges faced by the organization, coupled with increased community requests for lower youth fares and free transfers, staff proposes moving forward with a 25% increase phased over two years starting January 1, 2018. The adult single ride fare will increase from $2.00 to $2.25 on January 1, 2018 and to $2.50 on January 1, 2019. All associated fares would increase proportionately with the exception of paratransit fares which would remain unchanged.

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A table of proposed fares is included below:

VTA Fares Current Fare January 1, 2018 January 1, 2019 ADULT Single Ride Cash $2.00 $2.25 $2.50 Community Bus $1.25 n/a n/a Light Rail Excursion Pass $4.00 $4.50 $5.00 Day Pass $6.00 $7.00 $7.50 Day Pass Token (bag of 5) $15.00 $17.50 $18.75 Express Cash $4.00 $4.50 $5.00 Express Day Pass $12.00 $13.50 $15.00 Monthly Pass $70.00 $80.00 $90.00 Annual Pass $770.00 $880.00 $990.00 Express Monthly Pass $140.00 $160.00 $180.00 Express Annual Pass $1,540.00 $1,760.00 $1,980.00 YOUTH Single Ride Cash $1.75 $1.00 $1.25 Community Bus $0.75 n/a n/a Light Rail Excursion Pass $3.50 $2.00 $2.50 Day Pass $5.00 $3.00 $3.75 Day Pass Token (bag of 5) $12.50 $7.50 $9.50 Monthly Pass $45.00 $30.00 $35.00 Summer Blast Pass $75.00 $60.00 $70.00 Annual Pass $495.00 $330.00 $385.00 SENIOR/DISABLED Single Ride Cash $1.00 $1.00 $1.25 Community Bus $0.50 n/a n/a Light Rail Excursion Pass $2.00 $2.00 $2.50 Day Pass $2.50 $3.00 $3.75 Monthly Pass $25.00 $30.00 $35.00 Annual Pass $275.00 $330.00 $385.00

The base fare increases are expected to result in additional fare revenues of $1.8 million in FY 2018 (for 6 months), $6.1 million in FY 2019, and $8.6 million in FY 2020.

Youth Fares

VTA currently provides discounts on youth fares of 13-40% from the adult base fare, depending on the fare product, as compared to 50-60% discounts for seniors and persons with disabilities Families with multiple children find it difficult to purchase fares for all of their school going children, and staff has heard multiple requests to provide discounted or free fares for youth on VTA. San Francisco Municipal Transportation Agency recently introduced a “Free Muni for Youth” program that provides registered low and moderate income San Francisco youth ages 5 to 18 free access to Muni services when using a Clipper card. VTA collects $4.2 million annually

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from Youth fares. Given the financial challenges faced by VTA and the lack of alternative funding sources to provide free fares for youth, staff proposes to increase the youth discount and make youth fares consistent with fares for seniors/persons with disabilities. This change will result in a revenue loss of $ 1.1million in FY 2018, $2.2 million in FY 2019, and $2.3 million in FY 2020, which could be funded in part by 2016 Measure B funds up to $ 1.5 million per year.

Intra-Operator Transfers (VTA-to-VTA)

Currently, a single ride fare is not valid for a free transfer from bus to another bus, whereas a single ride fare on rail is valid for 2 hours of travel in any direction from the time of purchase.

Currently, 98% of trips are completed within 90 minutes of the initial boarding. In order to optimize the service redesign and increase ridership, staff proposes moving forward a proposal to make single ride fares on Clipper valid for up to 90 minutes system wide. This change will reduce fare revenues by up to $0.9 million in FY 2018, $2.8 million in FY 2019, and $3.9 million in FY 2020.

Currently, VTA’s ticket vending machines (TVMs) issue a paper ticket for a single ride fare, which acts as the proof of purchase for Fare Inspectors performing fare enforcement on light rail. However, on buses, Operators currently do not issue proof of payment for single rides and it is not desirable to burden Bus Operators with fare enforcement responsibilities when their primary responsibility is to operate the bus safely and on schedule. VTA’s fare boxes are equipped to issue limited use smart cards, which cost $0.25-$0.30 each, making it financially impractical to issue them as a proof of payment. For these reasons, staff proposes to offer free VTA-to-VTA transfers with single ride fares on Clipper only. This approach is consistent with the regional goal of maximizing the use of Clipper as the fare collection system in the Bay Area. Staff will prepare mitigation strategies to assist riders who do not have a Clipper card similar to the strategies adopted to ease the transition of VTA’s Day Pass product to Clipper in early 2016 such as: (a) distribution of Clipper cards at no cost for a limited period of time, (b) additional marketing to public of Clipper resources, and (c) additional public outreaches at major transit centers across the county during implementation.

Fares for Low Income riders

In August 2013, at the request of the group People Acting in Community Together (PACT), the VTA Board approved the Transit Assistance Program (TAP) pilot project. VTA received a $1.3 million grant from MTC to increase ridership by providing a discounted fare for low income adults not receiving other forms of transportation support. These grants will most likely not be available in the future. The TAP provides a very important lifeline to adults with low incomes by enabling them to use transit for work, health care, and other basic needs. Staff proposes continuing this program using 2016 Measure B funds up to $1 million per year.

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Community Bus fares

VTA had established a lower fare for community bus routes at inception for two basic reasons;

1. The routes were serviced by cut away vehicles which were significantly cheaper to acquire and operate

2. Bus Operators assigned to community bus routes were paid less than Bus Operators assigned to regular routes.

These cost differentials, which were the basis of the reduced community bus fares, no longer exist as VTA operates diesel hybrid transit buses on community bus routes and Bus Operators are paid the same wages regardless of the route they operate. With the service redesign, community bus is no longer included as a service category and therefore, staff proposes that the associated fare category be removed from the fare resolution. This change will have minimal impact on fare revenues of up to $0.2 million per year.

Eco Pass fares

VTA’s Eco Pass is a calendar year pass for unlimited trips on VTA’s fixed route service. Fares were established with twin goals of increasing ridership by providing more access and generating revenues equal to the average adult fare per boarding. The program has been well utilized and the average fare per Eco Pass boarding has consistently lagged the average adult fare per boarding. The average Adult Fare per boarding for CY16 was $1.50, and the average Eco Pass fare per boarding for CY16 was $0.61. The Eco Pass pricing structure is tiered and complex and has not been reviewed since inception. As a result, the program has provided very low cost transit access to employers, non-profits and universities/colleges. This raises questions of equity where individuals with low or moderate incomes who do not qualify for the Transit Assistance Program (TAP) pay a full fare, whereas corporations who can afford to pay more are charged a significantly lower fare per boarding.

Staff proposes to consolidate the existing four tiers to two tiers, split the program into three logical categories, limit the program to regular VTA service by including the express bus service as an add on option, adjust the pricing structure to more adequately reflect usage by the program participants and to rename the Eco Pass Program to the VTA SmartPass Program. The existing four tiers per service area would be simplified and consolidated into two tiers. Pricing shall be the higher fare of the consolidated headcount tiers resulting in a price increase for participants in the lower priced tiers.

Existing Headcount Tiers Proposed Headcount Tiers 1-99 1-2,999 100-2,999 3,000-15,000 3,000+ 15,000+

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Staff proposes to split the program into three institutional categories based on the types of participants. Also, the pass would no longer be a valid fare on VTA’s express bus service and will require the purchase of the Express Pass add-on option. The minimum contract value will increase from $1,794 to $2,500 to reflect the new pricing structure.

Collegiate Pass

A Collegiate Pass is proposed to be established for universities and community colleges with a price structure not to exceed San Jose State University (SJSU) per capita rate. The current downtown San Jose service level price for SJSU is $36 per enrolled student/faculty per year. A 5% increase, rounded up to the nearest dollar, shall be applied on January 2018 and on January 2019 increasing SJSU’s per enrolled student/faculty rate to $38 in January 2018 and $40 in January 2019. Pricing for community colleges in all other service levels which are currently lower shall increase by $5 per year, but not to exceed the SJSU per capita rate. The Collegiate Pass will not be valid on VTA’s express bus service. A table showing the existing rates as well as proposed rates is included below for reference.

Not-For-Profit Pass

A Not-For-Profit Pass is proposed to be established for public agencies such as the county, cities, nonprofit agencies, and low income housing. Staff proposes a fare increase of 15% rounded to the nearest quarter effective January 1, 2019. The Not-For-Profit Pass will not be valid on VTA’s express bus service. A table showing the existing rates as well as proposed rates is included below for reference.

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Corporate Pass

A Corporate Pass is proposed to be established for businesses and residential units. Staff proposes a fare increase of 25% rounded to the nearest quarter effective January 1, 2019. The Corporate Pass will not be valid on VTA’s express bus service. A table showing the existing rates as well as proposed rates is included below for reference.

Additional Service “Express Pass” Option

The Collegiate Pass, Not-For-Profit Pass and Corporate Pass will no longer be valid on VTA’s express bus service. Participating institutions will have the option to add the Express Pass option to their respective pass. This Express Pass option will also include access to the Dumbarton

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Bridge Express, Highway 17 Express and Monterey-Salinas Transit Express operators. Pricing for the Express Pass option will be based on the three institutional categories as shown below:

Eco Pass Revenue per Boarding by Institution Type

Summary of Changes

The table below summarizes the impact of the proposed changes on fare revenues ($ millions):

FY 2018 FY 2019 FY 2020 Fare Adjustments $1.8 $6.1 $8.6 Free Transfers ($0.9) ($2.8) ($3.9) Increased Discount for Youth ($1.1) ($2.2) ($2.3) Subsidy from 2016 Measure B - Youth Discounts $1.1 $1.5 $1.5 Subsidy from 2016 Measure B - TAP $1.0 $1.0 $1.0 Elimination of Community Bus fares $0.2 $0.2 $0.2 Eco Pass restructuring $1.3 $3.1 $3.8 Total* $3.4 $6.9 $8.9 *Totals may not foot due to independent rounding

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Title VI

In order to assess whether the fare change would result in Disparate Impacts on minority populations or a Disproportionate Burden on low income populations, a preliminary Fare Equity Analysis was performed on the proposed fare change. Using the VTA Title VI Policy, a disparate impact threshold 10 percent was used to determine if minority riders are more negatively - or less positively affected- by the proposed change when compared to VTA riders as a whole. The threshold applies to the difference between the aggregate impacts of the proposed fare change on minority and low income riders compared to the aggregate impacts of the change on the overall VTA ridership.

Consultant staff conducted a preliminary Fare Equity Analysis, using model outputs from the Fare Model that was calibrated to data from the VTA 2013 Onboard Survey for ethnicity and income by fare type. Based on the preliminary analysis, it does not appear that the fare change would result in either a Disparate Impact on minority populations or a Disproportionate Burden on low income populations. A final Fare Equity Analysis will be provided to the Board in June 2017.

ALTERNATIVES:

The Board could choose to not implement the proposed fare changes. This will result in reduced fare revenues as well as continuing inequities in the existing Eco Pass program. VTA's fare policy will continue to be at cross purposes with it's ridership objectives without free VTA to VTA transfers on Clipper, and fares for Youth will be maintained at current levels.

FISCAL IMPACT:

The proposed fare changes are expected to result in increased fare revenues by $3.4 million in FY2018, $6.9 million in FY2019, and $8.9 million in FY2020. The proposed VTA Transit Fund Operating budget for FY2018 and FY2019 reflects the increased fare revenues.

ADVISORY COMMITTEE DISCUSSION/RECOMMENDATION:

See Attachment B.

Prepared by: Ali Hudda Memo No. 6102

ATTACHMENTS:  Fare Memo April Workshop Attachment A (PDF)  Community Advisory Committee Comments Attachment B (PDF)  PROPOSED_Fare_Tariff_ 01012018 (PDF)  PROPOSED_Fare_Tariff_ 01012019 (PDF)

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ATTACHMENT A

VTA Fare Structure History Fixed Route and ADA Paratransit

January 2005 to Date

1/2005 to 9/2007 to 10/2009 Fares 8/2007 9/2009 to date (effective date) (Jan 2005) (Sep 2007) (10/09, 1/15, 1/16)

Fixed Route Service (Bus and Light Rail)

Adult Cash $1.75 $1.75 $2.00 Community Bus - $1.00 $1.25 Express $3.50 $3.50 $4.00 Light Rail Excursion (1) $3.50 $3.50 $4.00 $5.25 $5.00 $6.00 Day Pass (6) Day Pass Express (6) $10.50 $10.00 $12.00 Monthly Pass $61.25 $61.25 $70.00 Monthly Pass Express $122.50 $122.50 $140.00 $23.60 $22.50 $15.00 Day Pass Token (Bag of Five) (4) 12 month Pass Subscription $674.00 $674.00 $770.00 12 month Express Pass Subscription $1,348.00 $1,348.00 -

Youth (2) (7)

Cash $1.50 $1.50 $1.75 Community Bus - $0.50 $0.75 $3.00 $3.00 $3.50 Light Rail Excursion (1) Day Pass (6) $4.50 $4.00 $5.00 Monthly Pass $49.00 $40.00 $45.00 $20.25 $18.00 $12.50 Day Pass Token (Bag of Five) (5) 12 month Pass Subscription $539.00 $440.00 $495.00

Senior/Disabled (2) Cash $0.75 $0.75 $1.00 Community Bus - $0.50 $0.50 Light Rail Excursion (1) $1.50 $1.50 $2.00 Day Pass (6) $2.25 $2.00 $2.50 Monthly Pass $26.00 $20.00 $25.00 12 month Pass Subscription $286.00 $220.00 $275.00 ADA Paratransit (3) ADA One-Way Trip $3.50 $3.50 $4.00

(1) Light Rail Excursion passes implemented on promotional basis in June 2006 and placed in tariff in July 2007. (2) Youth and Senior/Disabled riders can board Express services for the same fare as Local services. (3) Effective August 1, 2003, persons with ADA paratransit photo ID cards may ride any VTA fixed-route service for free. (4) Adult Day Pass Tokens reduced to $15.00 for bag of five effective January 2015. (5) Youth Day Pass Tokens reduced to $12.50 for bag of five effective January 2015. (6) All Day Passes to be "Clipper Only" (using Accumulator logic) beginning January 2016. (7) Eligibility for all Youth fares extended to 18-year olds effective July 2015. 22.b

Attachment B Fare Policy Review Public and Advisory Committee Outreach

COMMUNITY MEETING COMMENTS:

Concerns:  Increase in Sr/Disabled fare  Exclusion of Express Service from base Eco Pass pricing  Increase in De Anza Eco Pass pricing  Low farebox recovery ratio and high operating costs  Inclusion of for-profit universities in the Corporate category versus the Collegiate category for Eco Pass  Clipper® only transfers  Shortage of places to purchase or add value to a Clipper® Card  Length of transfer validity  Potential loss of ridership due to fare increases

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ADVISORY COMMITTEE DISCUSSION/RECOMMENDATION:

On May 10 and May 11, the Proposed fare Policy Review was presented to the Technical Advisory Committee, Citizens’ Advisory Committee, Committee for Transportation Mobility and Accessibility, and Policy Advisory Committee. The major comments from committee members were as follows:

Support:  90 minute window for free transfers  No increase in paratransit fares  Continuation of Light Rail Excursion Pass  Simplification of Eco Pass program

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RESOLUTION NO.

RESOLUTION ESTABLISHING RATES & FARES FOR SANTA CLARA VALLEY TRANSPORTATION AUTHORITY (VTA)

RESOLVED that the following bus, light rail and paratransit rates and fares are hereby adopted by Santa Clara Valley Transportation Authority effective January 1, 2018, whereupon all previously adopted rates and fares are repealed, except as provided in Section VII.

I. Basic Fare Structure

Fare Category Fares Requirements/Restrictions

Adult: Single Ride $2.25 Light Rail Excursion Pass $4.50 Day Pass $7.00 Bag of 5 Day Pass Tokens $17.50 Tokens sold only to public agencies, social services, schools, and other nonprofit organizations Monthly Pass $80.00 Prepaid 12 Monthly Passes $880.00

Express Bus: Express fares are only applicable Express Bus Single Ride $4.50 for Adult riders. Express Day Pass $13.50 Express Monthly Pass $160.00 Prepaid 12 Monthly Passes $1,760.00

Youth: • Ages 5 - 18 Single Ride $1.00 • Proof of age may be required Light Rail Excursion Pass $2.00 • Ages 4 and under ride free Day Pass $3.00 Bag of 5 Day Pass Tokens $7.50 Tokens sold only to public agencies, social services, schools, and other nonprofit organizations Monthly Pass $30.00 Summer Blast Pass $60.00 Good for June, July, August Prepaid 12 Monthly Passes $330.00

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Fare Category Fares Requirements/Restrictions

Senior/Disabled/Medicare:

Single Ride $1.00 Light Rail Excursion Pass $2.00

Day Pass $3.00 Monthly Pass $30.00

Prepaid 12 Monthly Passes $330.00 • Valid Regional Transit Connection For Senior/Disabled/Medicare (RTC) Discount Card; fares, the rider must be 65 years of • Medicare Card; age or older, or a certified disabled • California Driver’s License; person. The following forms of • California ID Card; identification shall be accepted as • DMV Disabled License Plate proof of eligibility => Registration; • DMV Placard computer printout; • Birth certificate; • Passport (U.S. or foreign); • Alien Registration Card; • Valid Senior/Disabled/Medicare ID card from another California transit agency.

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II. Application of Fares

A. Bus

1. All fares shall be paid upon boarding and shall be valid for one boarding unless otherwise designated.

2. “Single Ride” fares purchased using Clipper® shall be valid for 90 minutes of travel, whether it be on a single route or a trip with multiple transfers across buses and light rail. When the passenger initially taps their card onto the reader to purchase a Single Ride fare, a 90-minute transfer will be stored onto their card. The passenger must subsequently tap their card each time they board a vehicle. Youth and Senior/Disabled/Medicare Single Ride fares shall be valid on all VTA operated service. Adult Single Ride fares shall be valid on VTA regular bus and VTA light rail services. An Adult passenger transferring to Express Bus service must pay a surcharge that is the difference between the Local and Express Bus fare if applicable. The 90 minute transfer window shall restart upon payment of a surcharge.

3. No change shall be given if fares are not paid in the exact amount of the appropriate fare in cash, pass, token or ticket. Combination of different fare media for a single ride is not allowed except Express Bus service surcharges may be paid in cash by persons holding Adult Day Passes or Adult Monthly Passes or valid passes or transfers from other agencies. Passengers with a valid Single Ride transferring to Express Bus service must pay the applicable surcharge with Clipper®.

4. Valid transfers and passes from AC Transit, Altamont Commuter Express, BART, Caltrain, Capitol Corridor, Dumbarton Bridge Express, Highway 17 Express, Monterey-Salinas Transit, and SamTrans shall be accepted as specified in separate inter-operator fare and transfer agreements or the Clipper® Business Rules, as provided in Section VII.

B. Light Rail and Historic Trolley

1. Proof of fare payment shall be carried at all times while on light rail and historic trolley, and shall be presented to fare inspector upon request.

2. “Single Ride” tickets purchased from ticket vending machines at light rail stations shall be valid for 90 minutes after time of purchase, and shall allow for unlimited travel on light rail or historic trolley in any direction during these 90 minutes, unless otherwise designated.

3. “Single Ride” fares purchased using Clipper® shall be valid for 90 minutes of travel, whether it be on a single route or a trip with multiple transfers across buses and light rail. When the passenger initially taps their card onto the reader to purchase a Single Ride fare, a 90-minute transfer will be stored onto their card. The passenger must subsequently tap their card each time they board a vehicle. Passenger must have a valid

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fare for the duration of their entire trip within the light rail system, including time spent within the paid area of stations or waiting at station platforms. Adult, Youth, and Senior/Disabled/Medicare Single Ride fares shall be valid on VTA regular bus and VTA light rail services.

4. “Light Rail Excursion” passes purchased from ticket vending machines at light rail stations are valid for 8 hours from time of purchase, and shall allow for unlimited travel on light rail or historic trolley in any direction during the 8 hours, unless otherwise designated.

5. Valid transfers and passes from AC Transit, Altamont Commuter Express, BART, Capitol Corridor, Caltrain, Dumbarton Bridge Express, Highway 17 Express, Monterey- Salinas Transit, and SamTrans shall be accepted as specified in separate inter-operator fare and transfer agreements or the Clipper® Business Rules, as provided in Section VII.

C. Pass Restrictions

1. Day Passes shall generally be available only on Clipper®. For Clipper® users, day passes shall be implemented as a daily fare maximum or “cap” for each rider fare category. Once the rider has incurred fare equal to the value of the Day Pass, no additional fare shall be charged for the balance of the service day. The Youth Day Pass, Senior/Disabled/Medicare Day Pass, and Express Day Pass shall be valid on all VTA operated service except Special Event Express Bus service. The Adult Day Pass shall be valid on all VTA operated service except Express Bus and Special Event Express Bus service. The Adult Day Pass shall be credited as base fare on Express Bus service but no credit shall be provided on Special Event Express Bus service. Paper day passes shall be available only in exchange for Adult or Youth Day Pass Tokens.

2. Light Rail Excursion Passes are not valid on bus service.

3. Monthly Passes shall be valid for unlimited rides from 12:01 a.m. on the first day of the month for which issued until 3:00 a.m. on the first day of the following month. The Youth Monthly Pass, Senior/Disabled/Medicare Monthly Pass, and Express Monthly Pass shall be valid on all VTA operated service except Special Event Express Bus service. The Adult Monthly Pass shall be valid on all VTA operated service except Express Bus and Special Event Express Bus service. The Adult Monthly Pass shall be credited as base fare on Express Bus service but no credit shall be provided on Special Event Express Bus service.

4. No refunds shall be made for purchased passes. Lost or stolen Day Passes or Monthly Passes shall not be replaced.

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III. Special Fares

SmartPass: 1. Calendar year pass for unlimited trips on all VTA-operated fixed-route service except Express Bus service. The agreement period for Colleges and Universities will be defined based on the agreed upon academic year.

2. Pass Categories:

a. Corporate Pass i. For-profit - A business, school, residential housing, development or corporation organized for the purpose of earning profits and enhancing the financial position of the owners.

b. Not-For-Profit Pass i. Nonprofit – An organization granted nonprofit status under state and federal tax exemptions. May also include not-for-profit schools.

ii. Low-Income Housing – Generally refers to properties required to provide units at below-market rents that are subsidized or discounted based on the tenant’s income, unlike Market Rate Housing where rents are set by the landlord based on how much the unit is worth in the market. Some examples include: Low-Income Housing, Subsidized Housing and Senior Housing.

iii. Government Agency – a local, state or federal administrative unit of U.S. government.

c. Collegiate Pass i. College & University Systems – Colleges that belong to the California Community College system, San Jose State University, Santa Clara University, and Stanford University.

3. SmartPass Validity on Paratransit Service:

a. Corporate and Not-For-Profit Passes for employers includes credit equal to an Adult Single Ride fare toward a paratransit One-Way Trip. No credit shall be provided for any other type of paratransit trip or service charge.

b. Collegiate Pass for San Jose State University includes credit equal to Adult Single Ride fare toward a Paratransit One-Way Trip. No credit shall be provided for any other type of paratransit trip or service charge.

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4. A minimum annual charge of $2,500 shall apply to all SmartPass contracts.

5. A residential community or development shall have a minimum 25 units to join SmartPass.

6. Fare Category and Fares:

Service Level based on Location Pass Category / and Size Annual Rate Per Headcount

Not-for-Profit Corporate Collegiate Pass Pass Pass* Downtown San Jose Location 1 – 2,999 Headcount $144.00 $144.00 $38.00 3,000+ Headcount $72.00 $72.00

Location Served by Bus & Light Rail 1 – 2,999 Headcount $108.00 $108.00 $38.00

3,000+ Headcount $36.00 $36.00

Location Served by Bus Only 1 – 2,999 Headcount $72.00 $72.00 $38.00

3,000+ Headcount $18.00 $18.00

Additional Service Option The per headcount premium below is added to regular SmartPass Annual Rate for access to VTA Express buses and additional contracted services with Dumbarton Express, Highway 17 Express, and Monterey-Salinas Transit Express operators. Per Headcount $21.60 $21.60 $9.00

*California Community Colleges rates lower than the Collegiate Pass rate shall increase by $5.00

per year, but shall not to exceed the Collegiate Pass rate.

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Fare Category Fares Requirements/Restrictions

Convention Day Pass: Valid for all VTA operated service except Express and Special Event Express Bus service.

Adult Convention Day Pass 75% of Adult Day Available only to Conventions/Hotels in Pass fare per day quantities of 100 or more.

Youth Convention Day Pass 75% of Youth Day Available only to Conventions/Hotels in Pass fare per day quantities of 100 or more.

Golden Getaway: 35 times Adult Available to Senior non-profit Day Pass price organizations

Special Event Express Bus Service

Single Ride Fare No less than Applicable to Special Event Express Bus $10.00 routes operated only for special events. No passes accepted on these routes.

IV. Other Fares

A. Promotional Fares

The Director of Communications may institute a limited period of reduced or free fares for promotional purposes.

B. Class Pass

The Director of Public Affairs and Marketing may offer a free “class pass” for students grades K-12, valid for one field trip per semester per class.

C. Emergency Response and Recovery Plans

The General Manager, or designee, may institute a temporary period of free fares in response to emergency situations and conditions, such as natural disasters, described in VTA’s Emergency Response and Recovery Plans.

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D. UPLIFT Program

Per agreement between VTA and Santa Clara County, VTA may provide up to 2,400 quarterly stickers for an annual fee of $144,000. Such stickers shall be valid for fare only when affixed to a valid County-issued photo ID card including the title “Santa Clara County Continuum of Care.” County shall issue such cards and stickers only to homeless individuals receiving case management services. County may purchase additional transit stickers above the base quantity of 2,400 at a rate of $15.00 per quarterly sticker. UPLIFT stickers shall be honored on VTA services equal to a VTA Adult Monthly Pass for the period indicated on the sticker. The UPLIFT Program does not provide any benefit on ADA paratransit service.

V. ADA Paratransit Fares

Fare Category Fares Requirements/Restrictions

One-Way Trip $4.00 For a disabled individual who is qualified for Paratransit Service.

Companion Equal to One-Way Trip A person other than a personal care ($4.00) attendant accompanying a qualifying disabled individual.

Open Return Trip 4 times One-Way Trip A return trip is not dispatched ($16.00) until customer calls and requests it.

Second Vehicle Sent 4 times One-Way Trip Charge for a second vehicle dispatched ($16.00) because customer was not ready or at pick-up location at the scheduled time for the first vehicle dispatched.

Same-Day Trip 4 times One-Way Trip Trip scheduled within the same day. ($16.00)

Same-Day Trip 4 times One-Way Trip A person, other than a personal care Companion ($16.00) attendant, accompanying a qualifying disabled individual on a same-day trip.

Extended Service Area 4 times One-Way Trip For service up to one mile beyond the ¾ ($16.00) mile ADA Paratransit Service Area.

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VI. Waived Fares

A. Children under five years of age.

B. Any peace officer, upon presentation of proper identification (badge or ID card).

C. VTA employees, their dependents, and VTA retirees upon presentation of currently valid VTA issued identification card.

D. Persons holding VTA-issued ADA paratransit photo ID cards may ride VTA fixed-route services except Special Event Express Bus service free of charge. If a personal care attendant is necessary for an individual to ride paratransit, then a personal care attendant may also ride free of charge when accompanying a qualifying person on fixed-route service.

VII. Agreements With Other Organizations

VTA may establish separate fare and transfer agreements/arrangements with AC Transit, BART, Monterey-Salinas Transit, SamTrans, Santa Cruz Metropolitan Transit District, the Dumbarton Bridge Express Service Consortium, the Peninsula Corridor Joint Powers Board (Caltrain), the Altamont Commuter Express Joint Powers Authority, the Capitol Corridor Joint Powers Authority, or any other organization providing transportation services within and through Santa Clara County. These agreements, along with the Clipper® Business Rules, shall define reciprocal transfer arrangements with other operators to facilitate the transfer of passengers between systems. Such agreements are not affected by this resolution.

VIII. Acceptance of Peninsula Corridor Joint Powers Board (Caltrain) Passes

VTA shall allow passengers with any Caltrain monthly pass of greater value than the applicable VTA monthly pass (Adult, Youth, and Senior/Disabled) to ride free on all VTA regular bus and VTA light rail services. On VTA Express Bus service, Adult passengers with any Caltrain monthly pass of greater value than the applicable VTA monthly pass shall receive a base fare credit; Youth and Senior/Disabled/Medicare passengers with any Caltrain monthly pass of greater value than the applicable VTA monthly pass shall be allowed to ride free. No fare credit or free rides shall be provided for Caltrain monthly passholders on Special Event Express Bus service.

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PASSED AND ADOPTED by the Santa Clara Valley Transportation Authority Board of Directors on by the following vote:

AYES: DIRECTORS

NOES: DIRECTORS

ABSENT: DIRECTORS

Jeannie Bruins, Chairperson Board of Directors

ATTEST: APPROVED AS TO FORM:

ELAINE BALTAO, Secretary ROBERT FABELA Board of Directors General Counsel

RESOLUTION NO.

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RESOLUTION NO.

RESOLUTION ESTABLISHING RATES & FARES FOR SANTA CLARA VALLEY TRANSPORTATION AUTHORITY (VTA)

RESOLVED that the following bus, light rail and paratransit rates and fares are hereby adopted by Santa Clara Valley Transportation Authority effective January 1, 2019, whereupon all previously adopted rates and fares are repealed, except as provided in Section VII.

I. Basic Fare Structure

Fare Category Fares Requirements/Restrictions

Adult: Single Ride $2.50 Light Rail Excursion Pass $5.00 Day Pass $7.50 Bag of 5 Day Pass Tokens $18.75 Tokens sold only to public agencies, social services, schools, and other nonprofit organizations Monthly Pass $90.00 Prepaid 12 Monthly Passes $990.00

Express Bus: Express fares are only applicable Express Bus Single Ride $5.00 for Adult riders. Express Day Pass $15.00 Express Monthly Pass $180.00 Prepaid 12 Monthly Passes $1,980.00

Youth: • Ages 5 - 18 Single Ride $1.25 • Proof of age may be required Light Rail Excursion Pass $2.50 • Ages 4 and under ride free Day Pass $3.75 Bag of 5 Day Pass Tokens $9.50 Tokens sold only to public agencies, social services, schools, and other nonprofit organizations Monthly Pass $35.00 Summer Blast Pass $70.00 Good for June, July, August Prepaid 12 Monthly Passes $385.00

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22.d

Fare Category Fares Requirements/Restrictions

Senior/Disabled/Medicare:

Single Ride $1.25 Light Rail Excursion Pass $2.50

Day Pass $3.75 Monthly Pass $35.00

Prepaid 12 Monthly Passes $385.00 • Valid Regional Transit Connection For Senior/Disabled/Medicare (RTC) Discount Card; fares, the rider must be 65 years of • Medicare Card; age or older, or a certified disabled • California Driver’s License; person. The following forms of • California ID Card; identification shall be accepted as • DMV Disabled License Plate proof of eligibility => Registration; • DMV Placard computer printout; • Birth certificate; • Passport (U.S. or foreign); • Alien Registration Card; • Valid Senior/Disabled/Medicare ID card from another California transit agency.

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22.d

II. Application of Fares

A. Bus

1. All fares shall be paid upon boarding and shall be valid for one boarding unless otherwise designated.

B. Light Rail and Historic Trolley

1. Proof of fare payment shall be carried at all times while on light rail and historic trolley, and shall be presented to fare inspector upon request.

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22.d

C. Pass Restrictions

2. Light Rail Excursion Passes are not valid on bus service.

4. No refunds shall be made for purchased passes. Lost or stolen Day Passes or Monthly Passes shall not be replaced.

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22.d

III. Special Fares

2. Pass Categories:

a. Corporate Pass i. For-profit - A business, school, residential housing, development or corporation organized for the purpose of earning profits and enhancing the financial position of the owners.

b. Not-For-Profit Pass i. Nonprofit – An organization granted nonprofit status under state and federal tax exemptions. May also include not-for-profit schools.

iii. Government Agency – a local, state or federal administrative unit of U.S. government.

c. Collegiate Pass i. College & University Systems – Colleges that belong to the California Community College system, San Jose State University, Santa Clara University, and Stanford University.

3. SmartPass Validity on Paratransit Service:

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4. A minimum annual charge of $2,500 shall apply to all SmartPass contracts.

5. A residential community or development shall have a minimum 25 units to join SmartPass.

6. Fare Category and Fares:

Service Level based on Location Pass Category / and Size Annual Rate Per Headcount

Not-for-Profit Corporate Collegiate Pass Pass Pass* Downtown San Jose Location 1 – 2,999 Headcount $165.50 $180.00 $40.00 3,000+ Headcount $82.75 $90.00

Location Served by Bus & Light Rail 1 – 2,999 Headcount $124.25 $135.00 $40.00

3,000+ Headcount $41.50 $45.00

Location Served by Bus Only 1 – 2,999 Headcount $82.75 $90.00 $40.00

3,000+ Headcount $20.75 $22.50

*California Community College rates lower than the Collegiate Pass rate shall increase by $5.00

per year, but shall not to exceed the Collegiate Pass rate.

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Fare Category Fares Requirements/Restrictions

Convention Day Pass: Valid for all VTA operated service except Express and Special Event Express Bus service.

Adult Convention Day Pass 75% of Adult Day Available only to Conventions/Hotels in Pass fare per day quantities of 100 or more.

Youth Convention Day Pass 75% of Youth Day Available only to Conventions/Hotels in Pass fare per day quantities of 100 or more.

Golden Getaway: 35 times Adult Available to Senior non-profit Day Pass price organizations

Special Event Express Bus Service

Single Ride Fare No less than Applicable to Special Event Express Bus $10.00 routes operated only for special events. No passes accepted on these routes.

IV. Other Fares

A. Promotional Fares

The Director of Communications may institute a limited period of reduced or free fares for promotional purposes.

B. Class Pass

The Director of Public Affairs and Marketing may offer a free “class pass” for students grades K-12, valid for one field trip per semester per class.

C. Emergency Response and Recovery Plans

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D. UPLIFT Program

V. ADA Paratransit Fares

Fare Category Fares Requirements/Restrictions

One-Way Trip $4.00 For a disabled individual who is qualified for Paratransit Service.

Companion Equal to One-Way Trip A person other than a personal care ($4.00) attendant accompanying a qualifying disabled individual.

Open Return Trip 4 times One-Way Trip A return trip is not dispatched ($16.00) until customer calls and requests it.

Second Vehicle Sent 4 times One-Way Trip Charge for a second vehicle dispatched ($16.00) because customer was not ready or at pick-up location at the scheduled time for the first vehicle dispatched.

Same-Day Trip 4 times One-Way Trip Trip scheduled within the same day. ($16.00)

Same-Day Trip 4 times One-Way Trip A person, other than a personal care Companion ($16.00) attendant, accompanying a qualifying disabled individual on a same-day trip.

Extended Service Area 4 times One-Way Trip For service up to one mile beyond the ¾ ($16.00) mile ADA Paratransit Service Area.

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VI. Waived Fares

A. Children under five years of age.

B. Any peace officer, upon presentation of proper identification (badge or ID card).

C. VTA employees, their dependents, and VTA retirees upon presentation of currently valid VTA issued identification card.

VII. Agreements With Other Organizations

VIII. Acceptance of Peninsula Corridor Joint Powers Board (Caltrain) Passes

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22.d

PASSED AND ADOPTED by the Santa Clara Valley Transportation Authority Board of Directors on by the following vote:

AYES: DIRECTORS

NOES: DIRECTORS

ABSENT: DIRECTORS

Jeannie Bruins, Chairperson Board of Directors

ATTEST: APPROVED AS TO FORM:

ELAINE BALTAO, Secretary ROBERT FABELA Board of Directors General Counsel

RESOLUTION NO.

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Biennial Budget & Fare Changes Fiscal Years 2018 and 2019

Administration & Finance Committee May 18, 2017 Adopted1 Service Level Budget Impact

Bus Service Hours

• No increase from FY17 Adopted Budget

• 7% increase from FY17 Projected Actual • Expanded/new evening, late-night & weekend service, annual cost ~$12M

1 Reflects Final Transit Service Plan adopted by Board of Directors May 4, 2017 2 Adopted1 Service Level Budget Impact (cont.)

Light Rail Service Hours

• 25% increase from FY17 • Annual cost ~$11M

1 Reflects Final Transit Service Plan adopted by Board of Directors May 4, 2017 3 Proposed Funding for Bus & Light Rail Enhancements

• 2016 Measure B • Enhance Frequent Core Network1 ($12M per year)

• 2000 Measure A • Increase Operating Assistance from 18.5% to 20.75%2 ($5M per year)

1 Expanded/new evening, late-night & weekend service, annual cost ~$12M 2 Support for enhanced light rail service, annual cost ~$11M

4 Summary of Fare Changes

• Base Fare increase • Youth Fares aligned with Sr/Disabled • Free VTA-to-VTA transfers on Clipper® • Transit Assistance Program (TAP) • Community Bus Service/Fare eliminated • Restructure Eco Pass

5 Fare Comparison Table

Proposed Fare Proposed Fare Fare Type Current Fare January 1, 2018 January 1, 2019 ADULT Single Ride Cash $2.00 $2.25 $2.50 Community Bus $1.25 n/a n/a Light Rail Excursion Pass $4.00 $4.50 $5.00 Day Pass $6.00 $7.00 $7.50 Express Cash $4.00 $4.50 $5.00 Express Day Pass $12.00 $13.50 $15.00 Monthly Pass $70.00 $80.00 $90.00 Express Monthly Pass $140.00 $160.00 $180.00 YOUTH Single Ride Cash $1.75 $1.00 $1.25 Community Bus $0.75 n/a n/a Light Rail Excursion Pass $3.50 $2.00 $2.50 Day Pass $5.00 $3.00 $3.75 Monthly Pass $45.00 $30.00 $35.00 SENIOR/DISABLED Single Ride Cash $1.00 $1.00 $1.25 Community Bus $0.50 n/a n/a Light Rail Excursion Pass $2.00 $2.00 $2.50 Day Pass $2.50 $3.00 $3.75 Monthly Pass $25.00 $30.00 $35.00 6 Concerns About Eco Pass Program

• Financially unsustainable • Significant equity issues with respect to disparate pricing

Unlimited Rides On VTA Regular Service For One Year Payer 2017 2018 2019

De Anza College Student $ 9.00 $ 14.00 $ 19.00

San Jose State University Student $ 36.00 $ 38.00 $ 40.00

Low Income Adult with TAP Benefit $ 300.00 $ 300.00 $ 300.00

Low Income Adult without TAP Benefit $ 770.00 $ 880.00 $ 990.00

7 Eco Pass Changes

Pass Categories & 2 Year Price Increases

• Collegiate Pass – Universities and community colleges to pay an annual rate regardless of service level or location SJSU – 5% ($2) increase in Jan 2018, additional 5% ($2) increase in Jan 2019 Community Colleges - $5 increase per year until they reach SJSU price level

• Not-for-Profit Pass – Nonprofits, Low-Income Housing, Government Agencies Consolidate tiers in January 2018 15% increase starting January 2019

• Corporate Pass – For-profit organizations Consolidate tiers in January 2018 25% increase starting January 2019

8 Fare Related Community Concerns

• Seniors on fixed incomes cannot afford higher fares • Students (De Anza College) cannot afford the increase in fares • Students cannot afford to pay extra for express bus service (SJSU)

9 Revenue Impact of Proposed Fare Policy Changes

(millions) FY 2018 FY 2019 FY 2020 Fare Adjustments-Transit $1.8 $6.1 $8.6 Free Transfers ($0.9) ($2.8) ($3.9) Increased Discount for Youth ($1.1) ($2.2) ($2.3) Subsidy from 2016 Measure B-Youth $1.1 $1.5 $1.5 Subsidy from 2016 Measure B-TAP $1.0 $1.0 $1.0 Elimination of Community Bus Fare $0.2 $0.2 $0.2 Eco Pass Restructuring $1.3 $3.1 $3.8 Total Revenue Impact $3.4 $6.9 $8.9

Note: Totals may not foot due to independent rounding 10 VTA Transit – Projected Operating Deficit

After Expense Mitigations/Fare Policy Changes/Additional Revenues

$500

$26M Millions $20M

$450 $467 $455

$493 $475 $400

$350 FY18 FY19 Revenues Expenses Fare Policy Changes Additional Revenues

11 Operating Deficit Management

• Use short-term financing (Commercial Paper), when appropriate, to fund capital needs • Fund from reserves • Combination of short-term financing and reserves

12 Next Steps

• June 1, 2017 • Adoption of Biennial Budget and Fare Policy Changes • Fall 2017 • Recommend optimal mix of short-term financing and reserves to address projected operating deficit • Final FY17 Sales Tax Receipts information available • Clearer picture of projected funds from SB1 • Increased certainty of BART service start and Adopted Transit Service Plan implementation date 13 23

Date: May 12, 2017 Current Meeting: May 18, 2017 Board Meeting: June 1, 2017

BOARD MEMORANDUM

TO: Santa Clara Valley Transportation Authority Administration & Finance Committee

THROUGH: General Manager, Nuria I. Fernandez

FROM: Director of Business Services, Alberto Lara

SUBJECT: Technology Maintenance & Support Contracts

Policy-Related Action: No Government Code Section 84308 Applies: Yes

ACTION ITEM

RECOMMENDATION:

Recommend that the VTA Board of Directors authorize the General Manager to approve technology maintenance and support agreements with the specified technology firms for software and hardware support services. Each contract shall be for a maximum three-year period, with an option for two additional years, with an aggregate value not to exceed $5,500,000 for all agreements in the first three years and $3,850,000 for all agreements in years four and five. BACKGROUND:

This is the third time we have brought the consolidated technology hardware and software maintenance and support action to the Board for review and approval. Over the years, VTA has competitively purchased technology software and hardware that requires annual maintenance and support which can only be purchased from the manufacturer or authorized resellers. With each software and hardware procurement, VTA signed a license agreement, a base contract, and a required annual maintenance and support agreement. If VTA elects to not purchase the annual maintenance and support, we can't continue to use the software. Typically, the maintenance and support is 20% to 25% of the original purchase price of the software (or hardware) with an adjustment for inflation. The maintenance and support agreement will also contain a Service Level Agreement (SLA) establishing service standards that the provider must meet.

Examples of support and maintenance provided by the vendors are:  Supplying VTA on-going software updates and security patches needed to protect VTA’s investment in the software license.  Incident-driven support targeted specifically to the solutions.

 Augmentation of VTA staff for problem resolution, such as during major computer or application failures.  Plan and provide new releases, migration scripts, and updates, to keep the software current.

There are multiple essential technology systems which rank highest in priority and cost that would be covered under this requested board authorization for example SAP, Trapeze, Motorola, Microsoft, and Oracle. A more complete list of the systems or providers requiring maintenance and support contracts is located in attachment A.

In all of the contracts for these systems, VTA is contractually obligated to purchase the maintenance and support contracts from the original provider. In a few cases, the service provider either uses distributors or certified partners to act as the agent in purchasing the maintenance and support. In these cases, VTA can acquire competitive bids but the original procurement contract locks in the maintenance and support rate with a typical adjustment for inflation. Under Section 9-2(b) of VTA’s Administrative Code, the General Manager acting as the Purchasing Agent has the authority to contract for the services of independent contractors such as these maintenance and support providers, but is limited to an amount not to exceed $750,000 over the term of the contract. Adherence to this dollar authorization for these support services has resulted in missed opportunities for savings.

DISCUSSION:

VTA's Technology software and hardware agreements require procurement of maintenance and support from the approved providers. The proposed action would give staff the authority to negotiate up to five year agreements. In some cases staff has been able to obtain concessions from the provider but they typically come with a very short time limit. For example VTA staff recently negotiated a three year agreement with SAP and was able to secure an incremental 3.4% discount and no CPI increase over the three years, provided that the contract is executed by month's end.

To have the ability to take advantage of the discount, staff recommends the Board authorize the General Manager to execute technology application and hardware maintenance and support contracts and task order agreements. Approving the proposed action gives the General Manager the authority to approve this type of agreement in a very short time, thus taking full advantage of the savings.

ALTERNATIVES:

The Board of Directors could choose to amend the list of qualified hardware and software support maintenance providers or could choose not to authorize the General Manager to execute contracts and task order agreements for technology maintenance and support services. This latter option would require staff to request Board authority for any item in excess of the General Manager procurement authority or stop using the solution. This option is not recommended by staff.

Page 2 of 3 23

FISCAL IMPACT:

This action will authorize up to $9,350,000 for software and hardware support services for a five-year period. Appropriation for the first two years is included in the FY 2018 and FY 2019 Proposed VTA Transit Fund Operating Budget. Appropriation for the remainder of the contract period will be included in subsequent Biennial Operating Budgets.

Prepared by: Richard Bertalan Memo No. 6092

ATTACHMENTS:  maintenance contracts_BoardMemo_Backgrnd_v2 (PDF)

Page 3 of 3 23.a Vendor Contact Info

Item Description Address Contact

Accela/Minute/Media Traq 90-D Raynor Ave, Ronkonkoma, NY Daryl Blowes; subscription 11779 631-563-5005 Allied Telesis 3041 Orchard Parkway, San Jose, Tim Hopkins Clipper/Core network / PIMs California 95134 USA 408-816-4978 475 Sansome St; Matt Jamieson Amazon, AWS San Francisco, California 94111 (415) 262-9765 380 New York St.,| Redlands, CA Charlotte Jordan ESRI Arcview/ArcInfo/ArcGIS 92373 | USA 888-377-4575, ext. 1-2602 Single Use Primary [email protected] 3575 Alameda Avenue Brian Parks AudioLog Recorder HW/SW Oakland, CA 94601 800.544.5050 x164 David Matthews 44 Montgomery St Ste 1000, San AutoCad 888.662.7238 x1015 Francisco, CA 94104 ideateinc.com 401 Elliott Ave W., Seattle, WA Joshua Levinson Big IP switch 98119-4004 1(206)272-7444 Alstom Signaling, Inc. Kim Christy CAAPE - BART 1025 John Street, West Henrietta, 585.279.1775 NY 14586 [email protected] 7160 Riverwood Dr, Columbia, MD Rex Surber; [email protected]; CAD/AVL Xerox - Conduent 21046 443.259.7207 1100 Winter St. Tom Barsi CarbonBlack Waltham, MA 02451 (617) 393-7400 360 Turtle Creek Ct., San Jose, CA CCTV - Fixed; Card Access Michael Petit 408-298-5400 95125 23.a Vendor Contact Info

128 Spear St. First Floor Brian Pisciotta Cisco Smartnet San Francisco ca 94105 415-788-1522 300 Crossways Park Dr, Woodbury, Saundra Graman Clever Devices CAD/AVL NY 11797 919-452-7164 1188 W Georgia St., #1050, V6E G. Sibley Collabware 4A2, Vancouver, CA 778-724-1814 565 Lori Drive #71, Benicia, CA Jeff Preece Crow Canyon Help Desk 94510 925-478-3110 Micah Matheny Crystal Enterprise 3410 Hillview, Palo Alto, CA 94304 615 733 2672 Solution/Business Object [email protected] 1200 Miccosukee Road, Jennifer Burns Cube Base Tallahassee, FL 32308 888 770 2823 27762 Network Place, Chicago, IL Zach Stebenow Customers eSubscription 60673-1277 1-866-276-5583 100 Century Center Court, Suite Michael Klee DocAve Premier 310, San Jose, CA, 95112 206-850-9060 Allison Mackin 1860 Michael Faraday Drive, Docusign 703-871-8676 Reston, VA 20190 [email protected] 408 St. Peter Street, Suite 600 St. 866-276-5583 x213 GovDelivery Paul, MN 55102 [email protected] Evonne Del Rio Support Agreements 8000 Foothills Blvd MS5525, HP 916.785.1949 Roseville, CA 95747 Fax: 916.226.3136 email: [email protected] 6860 N. Dallas Pkwy #200, Plano, Stellan Ohr Icomera Mobile Network TX 75025 972-905-2192 80 Tiverton Court, Suite 800 Deby Hendricks IVR - 50 Hours Markham, Ontario, Canada L3R (905) 946-3200 0G4 www.enghousetransportation.com 5150 Village Park Drive SE, Ste 200, Rob Speck; K2 Blackpearl smartforms Bellevue, WA 98006 425-883-4200 23.a Vendor Contact Info

Tania Martínez de Escobar 7171 Forest Lane, Dallas, TX LogRhythm PCI Appliance 800-400-9852 Opt 2 75230 1420 Kristina Way, Ste 101, Andreas Rakebrandt INIT LRV APC System Chesapeake, VI 23320 (757) 413 9100 x304 7171 Forest Lane, Dallas, TX Ana Lopez McAfee / Intel Virus Scan 75230 916-806-0955 Bruce Valentin 7171 Forest Lane, Dallas, TX Microsoft Enterprise Licenses 972.856.4617 75230 [email protected]

2222 Trade Zone Blvd., San Jose CA Joe Twohy Mitel PBX VoIP 95131 408-954-5182

6450 Sequence Dr., San Diego, CA Wayne Wahlgren; Motorola Fixed-end equipment 92121 858-368-3208 Stacy Deere 4739 Virginia Creek, Cincinnati, OH Nintex Forms and Workflow 513-687-4154 45244 [email protected] 745 Atlantic Ave., Boston, MA Tina Raposa Offsite storage 02111-2717 (800)934-3453 Oracle Support Sales Ellen Segur 1001 Sunset Blvd., Rocklin, CA Oracle Database license 9163155470 95765 [email protected]

5730 Oakbrook Pkwy #140, Ken Shin Parkingsoft - BART Norcross, GA 30093 (877) 884-7275 Michael Spencer 1 Pope Street, Wakefield, MA PM Web 617-207-7080 01880 [email protected] Oracle Support Sales Ellen Segur 1001 Sunset Blvd., Rocklin, CA Primavera P6 19163155470 95765 [email protected] 23.a Vendor Contact Info

Chris Robertson 83 Hartwell Avenue, Lexington, MA Quantum Disk Dedupe 800.467.4448 Ext. 6775 02421 [email protected] The Landmark at One Market, Suite Connor Gallery Salesforce 300, San Francisco, CA 94105 917 577-9175 International Trade Center 1300 Nick De Sant SAP Enterprise Pennsylvania Ave., N.W., Suite 600, 619-346-9828 Washington, DC 20004 83 E King St. Ste 107, Seattle, WA Dan Wassel; Socrata Open Data Platform 98104 206-340-8008 500 E. Middlefield Rd, Mountain Debbie Jones Symantec/Veritas NetBackups View, CA 94043 407-357-8122 Josh Cohen 7990 SW Cirrus Drive, Beaverton, TransLoc 971-888-4211 OR 97008

Dmitriy Vanchugov 8360 East Via de Ventura, Trapeze Core and OPS 905.629.8727 Scottsdale, AZ 85258 [email protected] 7171 Forest Lane, Dallas, TX Ana Lopez Vmware 75230 916-806-0955 Chris Robertson 83 Hartwell Avenue, Lexington, MA What'sUp Gold Monitoring 800.467.4448 Ext. 6775 02421 [email protected] 24

Date: May 12, 2017 Current Meeting: May 18, 2017 Board Meeting: June 1, 2017

BOARD MEMORANDUM

TO: Santa Clara Valley Transportation Authority Administration & Finance Committee

THROUGH: General Manager, Nuria I. Fernandez

FROM: Chief Financial Officer, Raj Srinath

SUBJECT: Approval of On Call Consultant List for Real Estate Services

Policy-Related Action: No Government Code Section 84308 Applies: Yes

ACTION ITEM

RECOMMENDATION:

Recommend that the VTA Board of Directors authorize the General Manager to establish an on- call list of qualified firms for the following real estate consultant services: relocation assistance, appraisal, appraisal review, furniture/fixtures/equipment appraisal, goodwill valuation, title and escrow, and general real estate services. The General Manager will be authorized to negotiate and execute service contracts with the firms for a term of five years and a value not to exceed $11,000,000 for all firms combined. The contracts will have an option for an additional two year term, at a combined value not to exceed $4,400,000 for the option term. BACKGROUND: VTA’s existing contracts for real estate consultant services will expire on June 30, 2017. VTA has numerous capital projects in various phases of planning, design and implementation that will continue to require services for relocation assistance, appraisal, appraisal review, furniture/fixtures/equipment appraisal, goodwill valuation, title and escrow, and general real estate services. These projects include the BART Phase II extension from Berryessa Station in San Jose to Santa Clara Station, Vasona Corridor Light Rail Extension Project, Capital Expressway Light Rail Extension Project, and various highway improvement projects. Additionally, a number of right of way project closeouts and VTA’s own periodic real property needs require the continued availability of these services. In December 2016, the Board approved the selection of Interwest Consulting Group (“Interwest”) for right of way program management and acquisition services for VTA projects. Interwest’s scope of work includes overall coordination and day-to-day management of the VTA-selected consultants who are needed to provide a full range of real estate related services to

VTA, as listed in Attachment A. VTA staff will provide oversight and direction to Interwest on a programmatic level, and will also work directly with the consultants described in Attachment A on projects which do not require Interwest’s involvement.

DISCUSSION: On January 23, 2017, VTA issued an RFP for real estate on-call services for relocation assistance, appraisal, appraisal review, furniture/fixtures/equipment appraisal, goodwill valuation, title and escrow, and general real estate services. The RFP was published in the San Jose Post Record and the VTA website, in accordance with VTA’s competitive solicitation procedure. Additionally, the RFP was published on the Appraisal Institute website. VTA received proposals from sixteen firms, with some firms submitting proposals for multiple categories of services. The proposals were evaluated based on a standard set of evaluation criteria including each firm’s experience in performing work of similar nature for other transportation or other public agencies, strength and quality as evidenced by its project manager and key personnel, experience working with projects under federal or state oversight, demonstrated ability to adhere to schedules and budgets, and quality assurance program. References from VTA personnel and other agencies were also considered. The four-person evaluation panel was comprised of an attorney from VTA’s Office of the General Counsel and three members of VTA's Real Estate & Joint Development Department. The evaluation panel selected the firms listed in Attachment A as the most qualified to provide the specified real estate consultant services to VTA. The requested contract amount for the above services is based upon an estimate of the properties that will potentially be required for VTA projects which are currently in planning, design or implementation phases. Budget appropriations for real estate consultant services for specific projects will be included in the approved budget for those projects requiring the services. The specific task orders issued under each contract will be funded in accordance with approved budgets for the relevant projects requiring the contracted services. ALTERNATIVES: The Board could request that staff re-issue the RFP with a revised scope of services, or direct the General Manager to negotiate a different term or value for the consultant contracts. These alternatives could impact staff’s ability to deliver project schedules in a timely manner. FISCAL IMPACT:

This action will authorize up to $11,000,000 for real estate consultant services for a five-year period, with an option to extend for another two-year period for up to an additional $4,400,000. Budget appropriations for real estate consultant services to support VTA projects will be included in the approved budget for each project.

Prepared by: Kathy Bradley Memo No. 5600

ATTACHMENTS:  Attachment A Real Estate Consultant List (PDF)

Page 2 of 2 24.a

Attachment A Approval of On-Call Consultant List for Real Estate Services List of Consultant(s)

RELOCATION ASSISTANCE

Firm Name Name Role Location Associated Right of Way Services Larry Castellanos Vice President 2300 Contra Costa Blvd., Suite 525 Pleasant Hill, CA 94523

Bender Rosenthal, Inc. Bob Morrison President 4400 Auburn Blvd., Suite 102 Sacramento, CA 95841

CPSI Marcella Jorgensen President and 8050 N. Palm Ave., Suite 300 CEO Fresno, CA 93711

Paragon Partners, Ltd. Neila LaValle President and 5762 Bolsa Ave., Suite 201 CEO Huntington Beach, CA 92649

Universal Field Services, Inc. Leslie D. Finnigan Vice President 1900 Point West Way, Suite 120 Sacramento, CA 95815

REAL ESTATE APPRAISAL

Firm Name Name Role Location Associated Right of Way Services Larry Castellanos Vice President 2300 Contra Costa Blvd., Suite 525 Pleasant Hill, CA 94523

Bender Rosenthal, Inc. Bob Morrison President 4400 Auburn Blvd., Suite 102 Sacramento, CA 95841

J Kaeuper & Company John R. Kaeuper Principal 625 Market St., Penthouse San Francisco, CA 94105

Overland, Pacific & Cutler, Inc. Mark La Bonte Vice President/ 3750 Schaufele Ave., Suite 150 Managing Long Beach, CA Director Runde & Partners, Inc. Timothy P. Runde President 505 Montgomery St., Suite 1034 San Francisco, 94111

Smith & Associates Terry S. Larson Partner 140 Town & Country Dr., Suite F Danville, CA 94526

24.a

REAL ESTATE APPRAISAL REVIEW

Firm Name Name Role Location Associated Right of Way Services Larry Castellanos Vice President 2300 Contra Costa Blvd., Suite 525 Pleasant Hill, CA 94523

Bender Rosenthal, Inc. Bob Morrison President 4400 Auburn Blvd., Suite 102 Sacramento, CA 95841

Henry R. Spoto, Jr. Henry R. Spoto, Jr. Appraisal 44652 Country Club Dr. Reviewer El Macero, CA 95618

J Kaeuper & Company John R. Kaeuper Principal 625 Market St., Penthouse San Francisco, CA 94105

Overland, Pacific & Cutler, Inc. Mark La Bonte Vice President/ 3750 Schaufele Ave., Suite 150 Managing Long Beach, CA Director

APPRAISAL OF FURNITURE, FIXTURES & EQUIPMENT

Firm Name Name Role Location Desmond, Marcello & Amster Madeleine Mamaux Partner 6060 Center Dr., #825 Los Angeles, CA 90045

BUSINESS GOODWILL VALUATION

Firm Name Name Role Location Desmond, Marcello & Amster Madeleine Mamaux Partner 6060 Center Dr., #825 Los Angeles, CA 90045

Sanli Pastore & Hill, Inc. Forrest Vickery Managing 701 University Ave., Suite 108 Director Sacramento, CA 95825

TITLE AND ESCROW

Firm Name Name Role Location Old Republic Title Company Shirley Lewis Assistant Vice 224 Airport Pkwy, Suite 170 President San Jose, CA 95110

24.a

GENERAL REAL ESTATE

Firm Name Name Role Location Associated Right of Way Services Larry Castellanos Vice President 2300 Contra Costa Blvd., Suite 525 Pleasant Hill, CA 94523

Bender Rosenthal, Inc. Bob Morrison President 4400 Auburn Blvd., Suite 102 Sacramento, CA 95841

Paragon Partners, Ltd. Neila LaValle President and 5762 Bolsa Ave., Suite 201 CEO Huntington Beach, CA 92649

Universal Field Services, Inc. Leslie D. Finnigan Vice President 1900 Point West Way, Suite 120 Sacramento, CA 95815

AF Item #24.X CMPP Item #12.X

Date: May 16, 2017 Current Meeting: May 18, 2017 Board Meeting: June 1, 2017

BOARD MEMORANDUM

TO: Santa Clara Valley Transportation Authority Administration and Finance Committee Congestion Management Program and Planning Committee

THROUGH: General Manager, Nuria I. Fernandez

FROM: Chief Operating Officer, Chief Financial Officer, Inez Evans, Raj Srinath

SUBJECT: Special Event Service Policy

Policy-Related Action: Yes Government Code Section 84308 Applies: No

ACTION ITEM

RECOMMENDATION:

Approve the Special Event Service Policy. BACKGROUND:

For several years, VTA has been providing augmented light rail and bus services for special events at Levi’s Stadium, Avaya Stadium and the SAP Center, with no reimbursement to VTA for the additional expenses incurred by VTA to provide this service. VTA is now facing a budget deficit in its current fiscal year and will continue to face a projected deficit over the next two fiscal years. As a consequence, the current practice of providing augmented services for special events with no reimbursement is not financially sustainable. Staff recommends the adoption of a special event service policy that would allow VTA to recover the costs of any augmented service it provides for special events.

DISCUSSION:

VTA has provided augmented service to Levi’s stadium since August 2014, including outstanding service to both the stadium and the City of Santa Clara for Super Bowl 50 in February 2016. VTA has also provided augmented service to Avaya Stadium and the SAP Center since they opened. Levi’s Stadium: Specifically, VTA provided augmented service to Levi’s stadium for a total of 67 events and

carried a total of 960,348 passengers to and from the stadium. During this time, VTA has taken great steps to “right size” the services provided for Levi’s stadium and has been able to reduce the average costs (net of fare revenues) of providing augmented service to Levi’s stadium from approximately $135,000 per event to about $65,000 per event. Nevertheless, there is still a cost for providing augmented service to Levi’s stadium for which VTA receives no reimbursement. Worth noting, 45% of events at Levi’s stadium are 49ers home games. Further, VTA’s cost for providing augmented service during these games represents almost half of all of VTA’s costs to provide augmented services on an annual basis to Levi’s stadium. The tables below show stadium attendance and ridership associated with VTA providing augmented service at Levi’s stadium for the past three seasons.

2014-15 2015-16 2016-17 No. of games (including pre-season) 10 10 10 Bus Ridership 25,772 22,446 11,460 Light Rail Ridership 176,042 147,694 123,056 System Ridership 201,814 170,140 134,516 Attendance 648,742 598,568 564,400

Transit Mode Share (VTA) 15.6% 14.2% 11.9% Avg Bus Ridership per game 2,577 2,245 1,146 Avg Light Rail Ridership per game 17,604 14,769 12,306 VTA Ridership per game 20,181 17,014 13,452 Avg Attendance per game 64,874 59,857 56,440 Table 1: VTA special service statistics during 49ers home games

Levi's stadium Attendance and VTA Ridership (49ers Games) Avaya: VTA also runs additional bus service to Avaya Stadium on game days on lines 10 and 231 for a

Page 2 of 3 cost that it does not recover. For example, for the line 10, VTA provides nine additional buses during pre-event and post-event service. The cost to VTA of this service, including the additional personnel, is approximately $8,098 per event. For Line 231, VTA provides ten additional buses during pre-event and post-event service. The cost of this service, including the additional personnel, is approximately $9,498 per event. SAP: For events at SAP, VTA runs an extra train, roundtrip, on the Santa Teresa light rail line both pre and post event. Depending on the attendance expected for the event and the day of the week, VTA will also add additional trains with additional cars post event to provide service for attendees leaving the event. Service Proposals: The significantly high level of augmented service provided by VTA during event days at stadiums and other large venues continues to be costly and difficult to sustain. In addition, VTA is already operating with a limited budget. VTA has a responsibility to meet the needs of its regular passengers and to ensure that its service is sustainable and cost effective. As a result, staff proposes the Board of Directors adopt a Special Event Service Policy (Attachment A) for events at stadiums and large venues that impact VTA service that will allow VTA to provide augmented service with corresponding reimbursement for the augmented service provided. ALTERNATIVES: VTA could continue providing augmented services without reimbursement which would have a negative impact on VTA finances or alternatively, not provide any augmented service. This could result in significant increases in traffic and associated safety concerns. FISCAL IMPACT:

Having a Board adopted Special Event Service Policy will help ensure the recovery of costs incurred to provide augmented service to stadiums and other venues.

Prepared by: Maria Soto Memo No. 6126

ATTACHMENTS:  Attachment A Special Event Service Policy

Page 3 of 3 OPERATIONS DRAFT Policy Document Service & Operations Planning OPS-PL-0004 Number: Special Event Service Version Number 01

1.0 Purpose To define the level of service provided at stadiums and other venues within VTA’s service area based upon the event size, event type, time, and/or day of the week, as well as to define the costs incurred by providing additional service to these events, and ensure recovery of those costs. 2.0 Scope This policy applies to stadiums and other venues hosting events that result in the need for augmented VTA service. 3.0 Responsibilities All VTA employees and contracted services personnel who plan or schedule routes and service for Special Events, and who operate or direct bus or light rail vehicles for Special Event service must adhere to this policy. 4.0 Policy It is VTA’s policy to provide service for Special Events at stadiums and other venues above normal service levels when requested to do so by an event venue using VTA service for an event. However, Special Events that require extra service beyond the normal level of service VTA provides on weekdays and weekends result in an additional cost to VTA. To ensure that VTA’s costs for providing additional service are recovered, it is VTA’s policy to require any additional service requested be funded by the venue using VTA service for such event. VTA provides higher levels of service and frequency of service on weekdays than it does on weekends. Therefore, weekends will require greater increases in additional equipment and staff to provide a level of service corresponding to the needs associated with stadium or other special event venues with large numbers of attendees. Typically, VTA has carried 10 to 15 percent of the attendees to and from a Special Event. 4.1 Augmented Special Event Service: Although VTA’s level of service can typically handle additional capacity with only minor adjustments, additional weekend or weekday service, or “Augmented Service,” will be necessary for larger Special Events requiring capacity beyond normal service levels, which may include service provided beyond VTA’s hours of service. Augmented service will be scaled based on additional capacity required due to the number of people that are expected to attend the Special Event.

4.2 Augmented Service Level Scenarios: The augmented levels of service and actual service provided will be based on the anticipated attendance of the event, staffing and equipment availability, along with other VTA needs.

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OPERATIONS DRAFT Policy Document Service & Operations Planning OPS-PL-0004 Number: Special Event Service Version Number 01

Below are guidelines based on regular weekend service levels:

Event Event Size Current 2017 Event Type (in attendance) Service Plan Requirement* # of Light Rail Trains 19 + 0 Minor # of Light Rail Cars 19 + 0 - +6 A (< 15k) # of Light Rail Operators 21 + 0 # of Buses & Operators - + 0

# of Light Rail Trains 19 + 5 Small # of Light Rail Cars 19 + 16 B (15-30k) # of Light Rail Operators 21 + 5 # of Buses & Operators - + 8

# of Light Rail Trains 19 + 9 Regular # of Light Rail Cars 19 + 34 C (30-60k) # of Light Rail Operators 21 + 9 # of Buses & Operators - + 10

# of Light Rail Trains 19 + 10 Large # of Light Rail Cars 19 + 46 D (> 60k) # of Light Rail Operators 43 + 10 # of Buses & Operators - + 12 * Event requirement based on the last three years of service levels

4.3 The additional costs associated with the Augmented Service levels will be calculated on the amount of extra service being provided. Additional costs may include, but are not limited to, contracted services personnel, ambassadors, field supervision, or any other operational personnel as needed.

4.4 Actual fees charged to the venue will be determined and billed in accordance with the Fee Schedule for Service developed by VTA’s Finance and Budget Division. VTA’s Operations Division will be responsible for executing the agreement for augmented services with the event sponsor. VTA’s Finance and Budget Division will invoice the sponsor for Augmented Service.

4.5 Any request for Augmented Service shall be submitted to VTA’s Operations

Division in writing at least thirty (30) days prior to the event.

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OPERATIONS DRAFT Policy Document Service & Operations Planning OPS-PL-0004 Number: Special Event Service Version Number 01

4.6 Any augmentation of bus service must be planned in compliance with VTA’s enabling legislation and any applicable charter service laws or regulations.

4.7 Should VTA not be able to provide the requested Augmented Service or less than the level of Augmented Service requested for the event, VTA will notify the requester, in writing.

5.0 Definitions 5.1 Special Event: Events, such as concerts and sporting events, which attract large crowds of attendees that will impact VTA’s service area.

6.0 Summary of Changes 6.1 Initial policy.

7.0 Approval Information

PREPARED BY REVIEWED BY: APPROVED BY:

Maria Soto Sr. Management Inez P. Evans Nuria I. Fernandez Date Signed Analyst Chief Operating Officer General Manager Operations Administration

Raj Srinath Chief Financial Officer

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