Regular Meeting of the MCAG Governing Board

Merced County Association of Governments Transit Joint Powers Authority for Merced County Merced County Regional Waste Management Authority

LOCATION: Meeting held via Zoom at: https://zoom.us/join Meeting ID: 816 7770 4503 Password: 95340 For audio only: 1-669-900-6833

Public comment may be made in advance of the meeting via email at: [email protected] or via voicemail at: (209) 330-9070 See instructions on the next page for submitting comments.

Date: Thursday, August 20, 2020

Time: 3:00 p.m.

Governing Board Members Director Paul Creighton, Chair Mayor, City of Atwater Director Lloyd Pareira, Vice Chair Merced County Supervisor Director Juan Aguilar Council Member, City of Livingston Director Rodrigo Espinoza Merced County Supervisor Director April Hogue Mayor, City of Dos Palos Director Lee Lor Merced County Supervisor Director Daron McDaniel Merced County Supervisor Director Mike Murphy Mayor, City of Merced Director Joe Oliveira Council Member, City of Gustine Director Scott Silveira Merced County Supervisor Director Mike Villalta Mayor, City of Los Banos

001 Welcome to the MCAG Governing Board Meeting!

AGENDA

Directors of the MCAG Governing Board and the general public receive the complete agenda packet at least 72 hours prior to each regular meeting. At least 72 hours prior to each regular MCAG Governing Board convening, a complete agenda packet is available for review on the MCAG website at www.mcagov.org. All public records relating to an open session item and copies of staff reports or other written documentation relating to items of business referred to on the agenda are on file at MCAG. Persons with questions concerning agenda items may call MCAG to make an inquiry regarding the nature of items described on the agenda.

INTERPRETING SERVICES

Interpretation services can be provided if requested at least three (3) business days in advance. Please contact Eva Garibay at (209) 723-3153 x 108 during regular business hours to request interpreting services.

Para solicitar servicios de interpretación por favor contacte por teléfono a Eva Garibay por lo menos tres (3) días antes de la junta al (209) 723-3153 x 108 durante horas de oficina.

INDIVIDUALS WITH DISABILITIES

Representatives or individuals with disabilities should contact MCAG at (209) 723-3153 at least three (3) days in advance of the meeting to request auxiliary aids or other accommodations necessary to participate in the public meeting.

REVISED INSTRUCTIONS FOR PUBLIC COMMENT

Public comment is available in advance of the meeting by email or telephone. All public comment received before noon on the day of the meeting will be read during the meeting. Any comments received after noon will be distributed to Board members and retained for the official record.

Email instructions: Email comments no longer than 500 words to [email protected]. Please note if the comments are associated with a specific item on the agenda or are general comments.

Phone instructions: You may provide comments via voicemail by calling (209) 330-9070. Recordings will be limited to three minutes. Please note if the comments are associated with a specific item on the agenda or are general comments.

ADDITIONAL INFORMATION

Merced County Association of Governments (209)723-3153 www.mcagov.org Transit Joint Powers Authority for Merced County (209)723-3100 www.mercedthebus.com Merced County Regional Waste Authority (209)723-4481 www.mcrwma.org Merced Data Special Services (209)723-3153 www.mcaggis.com Measure V (209)723-3153 www.mcagov.org/measurev

002 ITEM ACTION STAFF Pg. #

1. Roll call

2. Approval of agenda Action

3. Public comment

+ 4. Minutes Action Pg. 8

a. Regional Waste Management Authority Board meeting for July 16, 2020 b. Transit Joint Powers Authority for Merced County Board meeting for July 16, 2020 c. Merced County Association of Governments Governing Board meeting for July 16, 2020

+ 5. Citizens Advisory Committee report Info Ursula Stock Pg. 15

The Citizens Advisory Committee is part of the Merced County Association of Governments. Its mission is to be the eyes, ears and the voice of the Citizens of Merced County and to make recommendations to the Governing Board concerning all areas of transportation.

6. Quarterly contract status report for all agencies Info Alicia Ochoa-Jones

+ a. Transit Joint Powers Authority for Merced County Pg. 17 Board-approved contracts status + b. Merced County Association of Governments Pg. 21 Board-approved contracts status + c. Merced County Regional Waste Management Pg. 25 Authority Board-approved contracts status

TRANSIT JOINT POWERS AUTHORITY FOR MERCED COUNTY

+ 7. Transit Joint Powers Authority for Merced County Info Christine Chavez Pg. 29 monthly update

a. July 2020 ridership b. Operations and Maintenance update c. CARES Act funding d. Transit administration building

+ Attachment 003 ITEM ACTION STAFF Pg. #

8. Consent agenda Action

+ a. Approve project submittal for the State of Good Pg. 32 Repair program for Fiscal Year 2020-21 + b. Approve project allocation for submittal to Pg. 47 Caltrans – Division of Rail and Mass Transportation (DRMT) for Transit and Intercity Rail Capital Program FY 2020

+ 9. Authorization for Operating Assistance grant Action Christine Chavez Pg. 106 application submittal for the Coronavirus Aid, Relief, and Economic Security (CARES) Act for Federal Transit Administration Section 5311 program phase 2 for Federal Fiscal Year 2020

Adopt Resolution No. 2020/08-20-05 authorizing the filing of the FFY 2020 grant applications and authorize the Transit Joint Powers Authority Executive Director to sign and execute the related documents as stated.

MERCED COUNTY ASSOCIATION OF GOVERNMENTS

10. Caltrans report Info Caltrans District 10

11. Information/discussion only Info

+ a. MCAG Newsletter – August 2020 Pg. 113 + b. Calendar of Meetings, Conferences and Events Pg. 117 + c. MCAG Governing Board meeting schedule 2020 Pg. 119 + d. Minutes of the August 12, 2020 Technical Review Pg. 121 Board meeting + e. Dibs Annual Report Pg. 129

12. Consent agenda Action

+ a. Adopt Federal Transportation Improvement Pg. 133 Program Amendment 20 + b. Approve the Measure V Funding Agreement for Pg. 138 the Center Avenue North Project, City of Dos Palos + c. Approve the Measure V Funding Agreement for Pg. 147 the Hammatt and Campbell Intersection Project, City of Livingston d. Authorize contract for Internet Service Provider Pg. 156

13. Transportation Planning and Measure V updates Info Matt Fell

+ Attachment 004

ITEM ACTION STAFF Pg. #

+ 14. Measure V Implementation Plan status report Info Matt Fell Pg. 159

For information only.

15. Approve use of Federal Planning carryover funding Action Matt Fell Pg. 165 to update YARTS Short Range Transit Plan

Approve the use of up to $100,000 of Federal Planning carryover funding to update the YARTS Short Range Transit Plan.

+ 16. Approve delegation of authority to the Executive Action Ty Phimmasone Pg. 168 Director to enter into Congestion Mitigation Air Quality (CMAQ) Exchange agreements

Delegate authority to the Executive Director to enter into CMAQ exchange agreements.

MERCED COUNTY REGIONAL WASTE MANAGEMENT AUTHORITY

+ 17. Merced County Regional Waste Management Info Eric Zetz Pg. 172 Authority monthly update

a. Tonnage reports for June; b. Highway 59 Household Hazardous event; c. HF&H/SB 1383; d. Landfill Gas to Energy project; e. Highway 59 East Expansion; and f. Electronic Annual Report (EAR).

18. Consent agenda Action

+ a. Authorize contract for delivery of gasoline and Pg. 174 diesel + b. Authorize consultant contract to prepare Pg. 177 environmental documents for Highway 59 landfill expansion project

+ 19. Discussion and direction on Flow Control Action Eric Zetz Pg. 201 Implementation

a. Direct staff to draft a policy to relax the flow control requirement for diverted material (recycling and plant material green) for all jurisdictions to be brought back to the board for discussion and adoption at a future meeting; OR b. Implement the flow control requirement for all waste/recycle material streams (i.e. solid waste, recycling and plant material) for all jurisdictions. + Attachment 005

ITEM 4

007 ITEM 9d

MCAG Governing Board Transit Joint Powers Authority Board Regional Waste Management Authority Board

REGULAR MEETING MINUTES

DATE Thursday, July 16, 2020

The regular meeting of the Merced County Association of Governments Governing Board held on Thursday, June 18, 2020 via teleconference/webinar was called to order by Vice Chair Lloyd Pareira at 3:07 p.m.

DIRECTORS PRESENT MCAG STAFF PRESENT Director Daron McDaniel Nav Bagri, Finance Director Director Juan Aguilar Christine Chavez, Transit Manager Director Rodrigo Espinoza Blake Dunford, Assistant Planner Director April Hogue Matt Fell, Deputy Director - Planning Director Lee Lor Stacie Guzman, Executive Director Director Mike Murphy Emily Haden, Legal Counsel Director Joe Oliveira Kyle Loreto, Diversion Programs Manager Director Lloyd Pareira, Vice Chair Adam Perez, Multimedia Specialist Director Scott Silveira Ty Phimmasone, Associate Planner Director Mike Villalta Mary-Michal Rawling, Public Affairs Manager Joy Young, Administrative Assistant II DIRECTORS ABSENT Eric Zetz, RWA Director Director Paul Creighton, Chair

GUESTS AND MEMBERS OF THE PUBLIC Gregoria Ponce, Caltrans District 10

* (“Arrived after roll call”)

008

1. Roll Call

Roll was taken and a quorum was present.

2. Approval of Agenda

Director Lor moved to approve the July 16, 2020 MCAG Governing Board agenda. Seconded by Director Silveira. Roll Call Vote: Ayes – Directors Aguilar, Espinoza, Hogue, Lor, McDaniel, Murphy, Oliveira, Silveira, Villalta Noes – None MOTION CARRIED UNANIMOUSLY.

3. Public Comment

Stacie Guzman virtually presented Director Daron McDaniel with a plaque recognizing his service as chairperson on the MCAG Governing Board for the fiscal year 2019/2020. Mrs. Guzman thanked Director McDaniel for his leadership during unprecedented times.

Director McDaniel stated that he appreciates the coordination from staff and the board members to be able to conduct virtual meetings during this unprecedented time and that he is thankful for the experience.

4. Minutes

a. Regional Waste Management Authority Board meeting for June 18, 2020 b. Transit Joint Powers Authority for Merced County Board meeting for June 18, 2020 c. Merced County Association of Governments Governing Board meeting for June 18, 2020 Director Oliveira moved to approve the minutes from the June 18, 2020, Merced County Association of Governments Governing Board, Transit Joint Powers Authority for Merced County Board and the Regional Waste Management Authority Board meeting with corrections stating that Director Nagy was in attendance for Director Oliveira. Seconded by Director McDaniel. Roll Call Vote: Ayes – Directors Aguilar, Espinoza, Hogue, Lor, McDaniel, Murphy, Oliveira, Silveira, Villalta Noes – None MOTION CARRIED UNANIMOUSLY.

5. Citizens Advisory Committee Report

No report was given at this time.

009 TRANSIT JOINT POWERS AUTHORITY FOR MERCED COUNTY

6. Transit Joint Powers Authority for Merced County Monthly Update

Christine Chavez presented the update for the Transit Joint Powers Authority for Merced County and discussed the following topics: a. June 2020 Ridership b. Operations and Maintenance update c. COVID-19 California Department of Public Health Guidelines

MERCED COUNTY ASSOCIATION OF GOVERNMENTS

7. Caltrans Report

Gregoria Ponce gave the Caltrans report and discussed the following topics: • SR 140 Ferguson Rockslide Project is underway • Active Transportation Program Cycle 5 applications are due September 15, 2020 • SR 152 Safety Task Force meetings are ongoing • Pioneer Road Expansion Project meetings ongoing and project moving forward • SR 165 Hilmar Safety Task Force meetings ongoing • Director Dan McElhinney will retire on July 31, 2020 after 32 years of service

8. Information/Discussion Only

a. MCAG Newsletter – July 2020 b. Calendar of Meetings, Conferences and Events c. MCAG Governing Board Meeting Schedule 2020 d. Minutes of the July 8, 2020 Technical Review Board meeting e. FY 19/20 Quarter 4 Governing Board Summary f. Measure V Allocation Report

So noted.

9. Consent Agenda

a. Approve State Transit Assistance 3rd Quarter Claims and Distribution b. Approve the State of Good Repair 3rd Quarter Claims and Distribution c. Adopt Federal Transportation Improvement Program Amendment 19 Director McDaniel moved to approve the consent agenda. Seconded by Director Lor. Roll Call Vote: Ayes – Directors Aguilar, Espinoza, Hogue, Lor, McDaniel, Murphy, Oliveira, Silveira, Villalta Noes – None MOTION CARRIED UNANIMOUSLY.

010 10. Transportation Planning and Measure V Updates

Matt Fell gave an update on transportation planning and Measure V issues and discussed the following topics: • Westside Commuter Bus Study is underway, consultants gathering "big data" • LTF and Measure V we are expecting reductions in revenue (both are from sales taxes) • High Speed Rail is postponing adoption of their 2020 Business Plan to December • FTIP is proposed to be postponed to next spring • Federal INFRA Grant Program $900 million awarded nationwide; none in California this time • Federal legislation Congress is discussing reauthorization, appropriation, and an infrastructure stimulus

11. Approve Delegation of Authority to the Executive Director to Approve Claims for State Transit Assistance and State of Good Repair Funding

Matt Fell summarized the request for approval of the delegation of authority to the Executive Director to approve claims for State Transit Assistance and State of Good Repair funding.

Director Lor moved to delegate authority to the Executive Director to approve claims submitted by TJPA and YARTS for STA and SGR allocated funds. Seconded by Director Oliveira. Roll Call Vote: Ayes – Directors Aguilar, Espinoza, Hogue, Lor, McDaniel, Murphy, Oliveira, Silveira, Villalta Noes – None MOTION CARRIED UNANIMOUSLY.

12. Fiscal Year 2020/21 Local Transportation Fund (LTF) Apportionment

Matt Fell summarized the request to adopt the Fiscal Year 2020/21 Local Transportation fund apportionment.

Director Villalta moved to adopt Resolution 2020/07-16-04 approving the Local Transportation Fund apportionment schedule for Fiscal Year 2020/21 and authorize staff to forward the claim forms to the local jurisdictions. Seconded by Director Lor. Roll Call Vote: Ayes – Directors Aguilar, Espinoza, Hogue, Lor, McDaniel, Murphy, Oliveira, Silveira, Villalta Noes – None MOTION CARRIED UNANIMOUSLY.

011

13. Adopt Federal Transportation Improvement Program Amendment 18

Matt Fell summarized the request to adopt the Federal Transportation Improvement Program Amendment 18.

Director Lor moved to adopt Formal Amendment 18 to the 2019 Federal Transportation Improvement Program. Seconded by Director Oliveira. Roll Call Vote: Ayes – Directors Aguilar, Espinoza, Hogue, Lor, McDaniel, Murphy, Oliveira, Silveira, Villalta Noes – None MOTION CARRIED UNANIMOUSLY.

14. Approve MCAG’s Other Programs Budget FY 2020/21

Nav Bagri presented MCAG’s Other Programs Budget for Fiscal Year 2020/21 for approval.

Director Lor moved to approve the Overall Work Program and Budget for Other Programs for Fiscal Year 2020/21. Seconded by Director Silveira. Roll Call Vote: Ayes – Directors Aguilar, Espinoza, Hogue, Lor, McDaniel, Murphy, Oliveira, Silveira, Villalta Noes – None MOTION CARRIED UNANIMOUSLY.

MERCED COUNTY REGIONAL WASTE MANAGEMENT AUTHORITY

15. Merced County Regional Waste Management Authority Monthly Update

Eric Zetz presented the update for the Merced County Regional Waste Management Authority and discussed the following topics: a. Tonnage reports for June 2020 b. Highway 59 Scale Lane Improvement Project c. Billy Wright Scale Lane Improvement Project d. Billy Wright Anerobic Digester e. CARES Act Funding f. Billy Wright Expansion

16. Quarterly Diversion Programs Update

Kyle Loreto presented the quarterly Diversion Programs update and discussed the following topics: • Community Cleanup event cancellations • Remaining Community Cleanup events • Household Hazardous Waste Event – July 18, 2020 8:00 a.m. to 12:00 p.m. • Mattress and Carpet Recycling Programs • Mobile App

012

17. Authorize Deposit for Rule-21 PG&E Interconnection

Eric Zetz summarized the request for authorization for the deposit for Rule-21 PG&E interconnection facilities and distribution upgrades.

Director Lor moved to authorize the Executive Director to issue a deposit amount of up to $133,920 (total: $167,400 less $33,480 already deposited) with an Escrow Agent, Wells Fargo, for interconnection facilities and distribution upgrades with PG&E. Seconded by Director Oliveira. Roll Call Vote: Ayes – Directors Aguilar, Hogue, Lor, McDaniel, Murphy, Oliveira, Villalta Noes – Espinoza, Silveira MOTION CARRIED.

18. Contract No. 2015-100 Agreement for Transportation and Processing of Recyclable Materials

Kyle Loreto presented the workshop on contract No. 2015-100 agreement for transportation and processing of recyclable materials.

Director Villalta requested to have a detailed breakdown of tonnage and cost for the Los Banos CIty Council presentation on August 5th.

Director Villalta asked for a future item to be placed on the agenda regarding tipping fees at the landfill.

OTHER REPORTS

19. Executive Director’s Report

Stacie Guzman discussed the progress of the front office construction project.

20. Directors’ Reports

Director Lor announced the availability of free cloth face coverings from a local group and stated that she can put people into contact with them if there is a need.

There being no further business of the MCAG Governing Board, the meeting was adjourned at 5:03 p.m.

______/s/______Joy Young Administrative Assistant II

013 ITEM 5

014 ITEM 5

Citizens Advisory Committee Meeting Highlights

DATE Friday, August 7, 2020

Action items approved: • Minutes of the July 10, 2020 Citizens Advisory Committee meeting • Federal Transportation Improvement Program Amendment 20

Information items: • COVID-19 update • Transportation Planning/Measure V update • Transit Joint Powers Authority for Merced County Monthly update • Federal Transportation Improvement Program Amendment 19 • Dibs Annual Report • MCAG Newsletter – July 2020 • MCAG Newsletter – August 2020 • Minutes of the July 16, 2020 MCAG Governing Board meeting • Calendar of Meetings, Conferences and Events

Announcements:

No announcements were given at this time.

015 ITEM 6a

016 The Public Transportation Services of the Transit Joint Powers Authority for Merced County 369 W. 18th Street .. Merced, CA 95340 .. (209) 723-3100 .. (209) 723-0322 fax .. mercedthebus.com

ITEM 6a

DATE: August 14, 2020

TO: Transit Joint Powers Authority for Merced County

FROM: Alicia Ochoa-Jones, Purchasing and Contracts Manager

RE: INFORMATION: Transit Joint Powers Authority for Merced County Board-approved contract status

SUMMARY

Enclosed for your review and information is the Transit Joint Powers Authority for Merced County list of Board approved contracts and their status. The list is as of June 30, 2020 and all contracts are open.

REQUESTED ACTION

For information only.

BACKGROUND

In April 2019, staff introduced the concept of this reporting tool as a means to improve transparency with contract management, and to provide the board with progress updates from the first step of board-approval to final step of contract closeout. Staff provided the most recent update in May of 2020.

If you have any questions regarding this staff report, please contact Alicia Ochoa-Jones at 209.723.3153 x164 or at [email protected].

PAST ACTION TAKEN

No previous action was taken as this was an information only item.

NEXT STEPS

These updates will be provided to the Governing Board on a quarterly basis.

FISCAL IMPACT

None.

017

REQUESTED ACTION

For information only.

ATTACHMENT

TJPAMC Board approved contract status as of 6.30.2020

018 TJPAMC

VENDOR AND SERVICE STATUS START DATE END DATE CONTRACT TOTAL REMAINING BALANCE ADAride.com - Eligibility Paratransit Services Open 11/13/2018 11/30/2021 $ 84,000.00 $ 46,616.00 First Transit, Inc. - Transit Operations & Bus Maintenance Services Open 5/1/2020 4/30/2025 $ 51,033,857.24 $ 51,033,857.24 National Express Transit - Transit Operations & Bus Maintenance Services Open* 9/1/2015 8/31/2020 $ 32,043,853.00 $ 3,010,147.70 Power Security Group - Public Transit Security Services Open 6/20/2019 6/30/2022 $ 334,800.00 $ 227,867.00 Protech - Video Surveillance, Access Control System & Maintenance for Facility Open 1/16/2019 1/17/2022 $ 114,809.94 $ 16,186.89 Remix Software - Planning and Scheduling Software Open 7/1/2020 6/30/2023 $ 139,500.00 $ 139,500.00 Syncromatics - Vehicle Location and Real Time Passenger info Open 2/1/2019 1/31/2022 $ 175,668.00 $ 91,314.72 Van de Pol Enterprises, Inc. - Delivery of Bulk Fuel & Lubricants Open 7/1/2019 7/31/2022 $ 1,145,679.44** Vast Networks - Internet Services Open 11/30/2016 11/30/2020 $ 49,984.00 $ 17,443.69 W.H Breshears, Inc. - Fuel Card Program Open 7/1/2019 7/31/2022 $ 59,909.42**

*Pending final payment to vendor for contract close out **Commodity - Total paid to date

019 ITEM 6b

020

PH: 209.723.3153 FAX: 209.723.0322 www.mcagov.org 369 W. 18th Street Merced, CA 95340

ITEM 6b

DATE: August 14, 2020

TO: MCAG Governing Board

FROM: Alicia Ochoa-Jones, Purchasing and Contracts Manager

RE: INFORMATION: Merced County Association of Governments Board-approved contracts status

SUMMARY

Enclosed for your review and information is the Merced County Association of Governments list of Governing Board approved contracts and their status. The list is as of June 30, 2020 and all contracts are open.

REQUESTED ACTION

For information only.

BACKGROUND

If you have any questions regarding this staff report, please contact Alicia Ochoa-Jones at 209.723.3153 x164 or at [email protected].

PAST ACTION TAKEN

No previous action was taken as this is was an information only item.

NEXT STEPS

These updates will be provided to the Governing Board on a quarterly basis.

FISCAL IMPACT

None.

021

REQUESTED ACTION

For information only.

ATTACHMENT

MCAG GB approved contract status as of 6.30.2020.

022 MCAG

VENDOR AND SERVICE STATUS START DATE END DATE CONTRACT REMAINING BALANCE Apex Technology Management, Inc. - Multi-location IT Support Maintenance Open 7/1/2019 6/30/2022 $ 419,365.44 $ 280,971.44 CalVans Vanpool Project Agreement Open 3/1/2019 2/28/2021 $ 85,000.00 $ 57,285.69 Dynatest North America Inc - Pavement Management System Open 1/2/2018 10/1/2021 $ 501,381.60 $ 60,567.98 Fehr & Peers - Merced County Westside Commuter Bus Study Open 4/27/2020 6/30/2021 $ 99,340.00 $ 95,987.50 Fortis Telecom - Telephone Services/Communication Service Open 3/16/2020 3/15/2021 $ 29,705.52 $ 22,048.20 Heritage General - Construction of Front Office Security Upgrades Open 11/1/2019 9/5/2020 $ 110,531.19 $ 74,313.14 Hinderliter, De Llamas & Associates Open 6/1/2020 6/30/2022 $ 88,400.00 $ 88,400.00 Hudson Henderson & Company - Financial and Compliance Auditing Services Open 7/1/2019 12/31/2021 $ 205,540.00 $ 140,360.00 Janitek Cleaning Solution - MCAG Office Janitorial Services Open 1/2/2020 1/31/2020 $ 31,719.92 $ 17,680.50 KNN Public Finance - Financial Advisor Services for Transportation Sales Tax Measure Open 10/2/2017 9/30/2021 $ 58,500.00 $ 42,833.60 San Joaquin COG - dibs Vanpool Project Open 7/1/2019 6/30/2021 $ 85,000.00 $ 68,269.74 San Joaquin COG - dibs TDM Services Open 7/1/2020 6/30/2022 $ 150,000.00 $ 150,000.00 Spriggs, Inc. - Copier and Maintenance Service Open 1/22/2018 12/1/2020 $ 39,971.16 + tax $ (7,429.69) Townsend Public Affairs - Federal Lobbying Services Open 10/2/2017 9/30/2020 $ 75,000.00 $ 12,510.00

023 ITEM 6c

024

PH: 209.723.4481 FAX: 209.384.3109 7040 N. Highway 59 Merced, CA 95348

ITEM 6c

DATE: August 14, 2020

TO: Merced County Regional Waste Management Authority

FROM: Alicia Ochoa-Jones, Purchasing and Contracts Manager

RE: INFORMATION: Merced County Regional Waste Management Authority Board-approved contracts status

SUMMARY

Enclosed for your review and information is a report on the status of Merced County Regional Waste Management Authority Board’s (MCRWMA) contracts that have been previously approved by the Governing Board. The list is as of June 30, 2020 and includes contracts that are currently open. The purpose of this report is to provide the Governing Board with a regular update on the progress of these board-approved agreements and to improve transparency related to contract management.

The contracts showing closed are shown through end dates in January 2019.

REQUESTED ACTION

For information only.

BACKGROUND

In April 2019, staff introduced the concept of this reporting tool to improve transparency with contract management, and to provide the board with progress updates from the first step of board-approval to final step of contract closeout.

If you have any questions regarding this staff report, please contact Alicia Ochoa-Jones at 209.723.3153 x164 or at [email protected].

PAST ACTION TAKEN

No previous action was taken as this is an information only item.

NEXT STEPS

Moving forward, these updates will be provided on a quarterly basis.

025

FISCAL IMPACT

None.

REQUESTED ACTION

For information only.

ATTACHMENT

MCRWMA GB Approved Contract Status as of 6.30.2020.

026 MCRWMA

VENDOR AND SERVICE Status Start Date End Date Contract Total Remaining Balance APTIM Environmental Infrastructure, LLC - Gas Collection and Control System 4/15/2019 7/24/2019 Improvement Project Closed $790,000 $77,620 Ascent Environmental, Inc. - Preparation of Environmental Documents Open 3/21/2019 6/30/2021 $100,000 $8,129 EBA Engineering - Engineering Services Open 10/20/2016 12/31/2020 $301,666.50 * Clean Harbors Environmental Services - Household Hazardous Waste Management 1/1/2016 1/30/2020 Services Closed $300,000 $2,095 Clean Harbors Environmental Services - Household Hazardous Waste Management 3/1/2020 2/28/2023 Services Open $300,000 $271,987 Clean Harbors Environmental Services - Infectious Materials Emergency Response 4/22/2020 12/31/2020 Services Open $50,000 $50,000 HF&H Consultants, LLC - On-Call Planning Assistance for SB1383 and Recycling 10/1/2019 9/30/2022 Consulting Services Open $337,895 $209,805 KNN Public Finance, LLC - Financial Advisory Services for LFGTE Open 10/1/2019 9/30/2020 $80,000 $80,000 Innovative Construction Solutions - Phase 6B-1 Liner Expansion at Highway 59 4/29/2019 10/26/2019 Landfill Closed $5,109,660 $226,845 Mastec Power Corp - Construction Manager at Risk for LFGTE Phase 1 Open 3/12/2020 11/30/2020 $10,000 $10,000 Remy, Moose, Manley LLC - Legal Consulting Services Environmental Impact 12/21/2017 ** Review Open $75,000 $63,368 SCS Engineers, Inc. - Landfill Gas Collection System Monitoring, Maintenance and 12/16/2016 1/31/2021 Reporting Open $623,993.83 * Taylor Backhoe Service (TBS Contractors) - Highway 59 Landfill Scale Addition Open 6/1/2020 4/30/2021 $1,760,000 $1,745,250 Tesei Petroleum - Fuel Services Open 10/1/2015 9/1/2020 $1,947,490.53 *** Tetra Tech BAS - Engineering Services Open 10/24/2016 12/31/2020 $4,378,860.74 *

* On call services based on MCRWMA budget - Total paid to date ** Open until all services are rendered/budget is expended *** Commodity - Total paid to date

027 ITEM 7

028 The Public Transportation Services of the Transit Joint Powers Authority for Merced County 369 W. 18th Street .. Merced, CA 95340 .. (209) 723-3100 .. (209) 723-0322 fax .. mercedthebus.com

ITEM 7

DATE: August 14, 2020

TO: Transit Joint Powers Authority for Merced County

FROM: Christine Chavez, Transit Manager

RE: INFORMATION: Transit Joint Powers Authority for Merced County monthly update

BACKGROUND

In order to keep the Technical Review Board (TRB) and the Transit Joint Powers Authority for Merced County (TJPAMC) Board informed, staff will provide a monthly update on TJPAMC activities.

Staff will give an oral report on the following items: 1) July 2020 Ridership report 2) Operations and Maintenance update 3) CARES Act funding 4) Transit administration building

FISCAL IMPACT

None, for information only.

REQUESTED ACTION

For information only.

ATTACHMENTS

July 2020 Ridership

029 The Bus - July 2020 Ridership

% Change Total (Aug 19 - Fixed Route Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 (July 20 vs July 20) July 19) Local 12,165 17,316 16,217 18,388 14,801 14,598 16,924 17,006 14,297 Measure V Intercity 1,573 1,747 1,747 2,113 1,724 1,542 2,003 2,223 1,784 Total 13,738 19,063 17,964 20,501 16,525 16,140 18,927 19,229 16,081 General Students 1,761 6,164 10,081 10,152 7,164 3,894 2,113 2,241 1,765 Students UC Merced Students 3,932 6,653 12,129 12,827 9,373 6,616 6,250 9,278 3,234 25,571 32,198 37,214 36,587 683,882 (38.05%) Merced College Students 5,866 10,170 6,888 Free (PCA, Children & Staff) 2,175 2,176 2,152 2,306 1,795 1,308 1,866 2,244 1,201 General (Adult) 37,455 36,978 34,740 39,542 31,730 28,914 36,925 28,606 22,541 Grand Total Ridership 59,061 71,034 77,066 85,328 66,587 56,872 71,947 71,768 51,710 Service Miles 149,571 147,475 141,979 166,427 132,030 137,556 147,298 136,289 149,073 139,054 139,336 146,506 141,229 1,724,252 (5.58%) Service Hours 9,880 9,477 9,232 10,303 8,783 9,208 9,764 9,079 9,999 9,332 8,980 9,527 9,683 113,366 (1.99%)

% Change Total (Aug 19 - Paratransit/GDAR Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 (July 20 vs July 20) July 19) Adult 3,197 3,656 3,213 3,778 3,003 2,896 3,385 3,253 2,520 1/2 Fare Los Banos Only 647 819 647 857 637 821 958 904 582 Students 14 99 183 148 61 19 - - - 38,456 (69.08%) UC Merced Students 100 38 35 38 63 30 22 67 35 1,343 935 900 1,279 Free (PCA, Children & Staff) 178 198 158 154 106 114 184 182 136 Grand Total Ridership 4,136 4,810 4,236 4,975 3,870 3,880 4,549 4,406 3,273 Service Miles 32,794 37,239 33,908 41,138 33,699 30,323 34,352 31,886 25,392 10,686 10,903 13,677 17,644 320,847 (46.20%) Service Hours 2,461 2,663 2,446 2,908 2,504 2,512 2,716 2,486 1,962 806 825 1,033 1,234 24,095 (49.87%)

Fixed Route - Ridership (2019 vs 2020) 120,000 Paratransit/GDAR - Ridership (2019 vs 2020) 113,058 6,000

100,000 89,118 5,167 4,975 87,529 5,000 4,810 77,445 85,328 4,323 4,549 3,988 4,379 4,406 4,440 4,432 4,501 4,285 4,261 77,066 71,947 4,136 4,236 4,136 80,000 69,787 4,081 4,082 4,007 71,768 3,870 3,880 71,034 69,440 4,000 67,499 69,299 66,587 65,220 66,337 59,061 60,131 63,921 59,061 3,273 60,000 56,872 51,710 3,000

40,000 37,214 36,587 32,198 2,000

25,571 1,343 1,279 20,000 1,000 935 900

- -

Ridership FY 18/19 Ridership FY 19/20 Ridership FY 18/19 Ridership FY 19/20

030 ITEM 8a

031 The Public Transportation Services of the Transit Joint Powers Authority for Merced County 369 W. 18th Street .. Merced, CA 95340 .. (209) 723-3100 .. (209) 723-0322 fax .. mercedthebus.com

ITEM 8a

DATE: August 14, 2020

TO: Transit Joint Powers Authority for Merced County

FROM: Christine Chavez, Transit Manager

RE: ACTION: Approve project submittal for the State of Good Repair program for Fiscal Year 2020-21

SUMMARY

Staff is preparing to submit a project funding request to Caltrans - Division of Rail and Mass Transportation for the State of Good Repair Program Fiscal Year 2020-21 to develop the recently awarded electric bus facility electrification infrastructure. This infrastructure project consists of development of plans, specifications, installation of conduit for charging connections.

A Board Resolution is required to authorize:

• The filing of the project for FY 2020-21 State of Good Repair Program; and

• The TJPAMC Executive Director or designee to sign and execute documents related to the grant program as well as executing Caltrans-DRMT Standard Agreement Contract.

REQUESTED ACTION

a. Adopt Resolution No. 2020/08-20-02 authorizing the filing of the FY 2020-21 SGR project; and b. Authorize the Transit Joint Powers Authority Executive Director to sign and execute the related documents as well as executing Caltrans-DRMT Standard Agreement contract.

BACKGROUND

The Road Repair and Accountability Act of 2017, Senate Bill (SB) 1 (Chapter 5, Statues of 2017), signed by the Governor on April 28, 2017, includes a program that will provide additional revenues for transit infrastructure repair and service improvements. This investment in public transit is referred to as the State of Good Repair program, which is funded from a portion of a new Transportation Improvement Fee on vehicles registrations due on or after January 1, 2018. Merced County has formula grant allocations under this program estimated of $410,778 ($392,377 PUC 99313 and $18,401 PUC 99314) for FY 2020-21.

032 State of Good Repair (SGR) funds are available for transit capital projects or services to maintain or repair a transit operator’s existing transit vehicle fleet or transit facilities, including the rehabilitation or modernization of the existing vehicles or facilities and may include the design, acquisition and construction of new vehicles or facilities that improve existing transit services, and for transit services that complement local efforts for repair and improvement of local transportation infrastructure.

PAST ACTION TAKEN

2019/20 SGR Allocation: Funding utilized to provide the local match for vehicle replacement projects and the Administration building renovation. 2018/19 SGR Allocation: Funding utilized to provide the local match for vehicle replacement projects. January 2020: 5339 (b) Bus and Bus Facilities Funding accepted by the Board.

DISCUSSION

Transit Joint Powers Authority for Merced County (TJPAMC) has been awarded two competitive grants for 8 electric vehicles. The grant awards received for fleet replacement originate from Transit Intercity Rail Capital Program (TIRCP) and FTA 5339(b) grants for bus and bus facilities. The projects awarded include 8 vehicles between the two awards, on-board technology, and associated charging stations for the vehicles. The grant authorization is still in the works with funding agencies and is anticipated to come before the TJPAMC Board within the next few months for action/direction on selecting a bus manufacturer. In anticipation of these vehicles/projects coming to fruition, staff is recommending utilizing this year’s State of Good Repair (SGR) funding to fund the infrastructure and engineering specifications needed to provide electrical infrastructure for the charging of the vehicles at the Operations and Maintenance Facility.

Staff recommends building the initial infrastructure to a 20 electric bus capacity and conducting a study to determine the approach to TJPAMC’s zero emission goal. The state also mandates that transit agencies of our size have a plan in place for the roll out of zero emission buses no later than July 2023. It is anticipated, in consultation with electric bus vendors, and the Merced Irrigation District, that infrastructure costs (conduit and facility connections) for up to 20 vehicles up front will come in at a cost around $550,000. Staff would need to solicit the services requested, identify the final costs and sources for the project, and would bring back contract authorization to the TJPAMC board for approval later this year.

Staff has evaluated capital projects eligible for these funds and recommends the following project for SGR FY 2020-21:

Project(s) Estimated Cost Electrification infrastructure at the Operations and Maintenance $410,778 Facility – development, installation, and connections for vehicle charging infrastructure Total $410,778

If you have any questions regarding this staff report, please contact Christine Chavez at 209.723.3100 x509 or [email protected].

033 FISCAL IMPACT

Utilizing SGR funding to pay for the electrification infrastructure and specifications will reduce the agencies need to find resources available for the capital needs by $410,778.

The Technical Review Board concurs with the requested action.

REQUESTED ACTION

ATTACHMENTS

Resolution No. 2020/08-20-02 Fiscal Year 2020-21 State of Good Repair Program Allocation Estimate

034 Transit Joint Powers Authority for Merced County

RESOLUTION NO. 2020/08-20-02

APPROVING THE PROJECT LIST FOR FY 2020-21 FOR THE CALIFORNIA STATE OF GOOD REPAIR PROGRAM

WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017, establishing the State of Good Repair (SGR) program to fund eligible transit maintenance, rehabilitation and capital project activities that maintain the public transit system in a state of good repair; and

WHEREAS, SGR funds are allocated by the Merced County Association of Governments; and

WHEREAS, Transit Joint Powers Authority for Merced County‘s share of SGR funds for fiscal year 2020-21 is estimated to be $410,778 ($392,377 PUC 99313 and $18,401 PUC 99314); and

WHEREAS, these funds will be used for infrastructure development and installation for vehicle electrification at the Operations and Maintenance facility; and

WHEREAS, in order to qualify for these funds, the Transit Joint Powers Authority for Merced County is required to submit a proposed project list to California Department of Transportation (Caltrans) on an annual basis; and

NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Transit Joint Powers Authority for Merced County hereby approves the SB1 State of Good Repair Project List for FY 2020-21; and

NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Transit Joint Powers Authority for Merced County that the fund recipient agrees to comply with all conditions and requirements set forth in the Certification and Assurances document and applicable statutes, regulations and guidelines for all SGR funded transit capital projects.

NOW THEREFORE, BE IT FURTHER RESOLVED that the Executive Director or her designee is hereby authorized to submit a request for Scheduled Allocation of the SB1 State of Good Repair Funds and to execute the related grant applications, forms and agreements.

The foregoing Resolution was introduced at the regular meeting of the Board of the Merced County Association of Governments, held on the 20th day of August, 2020 by ______, who moved its adoption, which motion was duly seconded by , and which was adopted by the following vote:

035 Transit Joint Powers Authority for Merced County

AYES:

NOES:

ABSENT:

ATTEST: AGENCY BOARD DESIGNEE:

BY: ______Stacie Guzman, Executive Director Paul Creighton, Chairperson Transit Joint Powers Authority for Transit Joint Powers Authority for Merced County Merced County

______Date

036

BETTY T. YEE California State Controller

January 31, 2020

County Auditors Responsible for State of Good Repair Program funds Transportation Planning Agencies County Transportation Commissions San Diego Metropolitan Transit System

SUBJECT: Fiscal Year 2020-21 State of Good Repair Program Allocation Estimate

Enclosed is the summary schedule of State of Good Repair (SGR) program funds available to be allocated for fiscal year (FY) 2020-21 to each Transportation Planning Agency (TPA), county transportation commission, and the San Diego Metropolitan Transit System for the purposes of Public Utilities Code (PUC) section 99312.1(c). Allocations for the SGR program are calculated pursuant to the distribution formulas in PUC sections 99313 and 99314. Also enclosed is a schedule detailing the estimated available amount calculated pursuant to PUC section 99314 for each TPA by operator.

PUC section 99313 allocations are based on the latest available annual population estimates from the Department of Finance. PUC section 99314 allocations are based on the revenue amount for each STA-eligible operator, determined from annual reports submitted to the State Controller’s Office (SCO) pursuant to PUC section 99243.

According to the FY 2020-21 proposed California Budget, the estimated amount of SGR funds budgeted is $110,746,000. Prior to receiving an apportionment of SGR program funds in a fiscal year, an agency must submit a list of proposed projects to the California Department of Transportation (DOT). DOT reports to SCO the eligible agencies that will receive an allocation quarterly pursuant to PUC sections 99313 and 99314. SCO anticipates that the first allocation to eligible agencies will be paid in November 2020. Please refer to the schedule for the amounts that relate to your agency.

Please contact Mike Silvera by telephone at (916) 323-0704 or email at [email protected] with any questions, or for additional information about this schedule. Information for the SGR program can be found on the DOT website at: https://dot.ca.gov/programs/rail-and-mass-transportation/state-transit-assistance-state-of-good-repair.

Sincerely,

(Original Signed By) EVELYN CALDERON-YEE Bureau Chief Bureau of Payments

Enclosures Local Government Programs and Services Division MAILING ADDRESS P.O. Box 942850, Sacramento, CA 94250 3301 C Street, Suite 700, Sacramento, CA 95816

037 STATE CONTROLLER'S OFFICE 2020-21 STATE OF GOOD REPAIR PROGRAM ESTIMATED AVAILABLE AMOUNT SUMMARY JANUARY 31, 2020

Estimated Available Estimated Available Total 2020-21 Amount Based 2020-21 Amount Based Estimated Available on PUC 99313 on PUC 99314 2020-21 Amount Regional Entity Allocation Allocation Allocation A B C= (A + B)

Metropolitan Transportation Commission $ 10,794,453 $ 29,610,203 $ 40,404,656 Sacramento Area Council of Governments 2,696,250 963,683 3,659,933 San Diego Association of Governments 1,344,356 322,396 1,666,752 San Diego Metropolitan Transit System 3,304,052 1,418,415 4,722,467 Tahoe Regional Planning Agency 146,918 5,978 152,896 Alpine County Transportation Commission 1,612 58 1,670 Amador County Transportation Commission 53,108 2,115 55,223 Butte County Association of Governments 314,073 17,593 331,666 Calaveras County Local Transportation Commission 62,570 826 63,396 Colusa County Local Transportation Commission 30,673 1,035 31,708 Del Norte County Local Transportation Commission 38,001 1,476 39,477 El Dorado County Local Transportation Commission 236,701 16,680 253,381 Fresno County Council of Governments 1,412,143 164,763 1,576,906 Glenn County Local Transportation Commission 40,402 1,117 41,519 Humboldt County Association of Governments 187,686 52,401 240,087 Imperial County Transportation Commission 263,869 21,905 285,774 Inyo County Local Transportation Commission 25,786 0 25,786 Kern Council of Governments 1,270,994 90,749 1,361,743 Kings County Association of Governments 213,172 9,565 222,737 Lake County/City Council of Governments 90,243 5,358 95,601 Lassen County Local Transportation Commission 41,813 1,607 43,420 Los Angeles County Metropolitan Transportation Authority 14,220,315 18,555,750 32,776,065 Madera County Local Transportation Commission 221,252 5,202 226,454 Mariposa County Local Transportation Commission 25,058 669 25,727 Mendocino Council of Governments 123,442 10,083 133,525 Merced County Association of Governments 392,377 35,822 428,199 Modoc County Local Transportation Commission 13,316 1,142 14,458 Mono County Local Transportation Commission 18,883 29,241 48,124 Transportation Agency for Monterey County 617,720 213,911 831,631 Nevada County Local Transportation Commission 137,165 7,519 144,684 Orange County Transportation Authority 4,469,105 1,452,168 5,921,273 Placer County Transportation Planning Agency 432,593 62,081 494,674 Plumas County Local Transportation Commission 27,430 2,119 29,549 Riverside County Transportation Commission 3,384,074 568,173 3,952,247 Council of San Benito County Governments 86,395 1,650 88,045 San Bernardino County Transportation Authority 3,040,246 558,159 3,598,405 San Joaquin Council of Governments 1,068,405 276,852 1,345,257 San Luis Obispo Area Council of Governments 388,862 29,237 418,099 Santa Barbara County Association of Governments 630,450 174,427 804,877 Santa Cruz County Transportation Commission 381,203 353,806 735,009 Shasta Regional Transportation Agency 247,930 16,166 264,096 Sierra County Local Transportation Commission 4,456 209 4,665 Siskiyou County Local Transportation Commission 61,831 2,004 63,835 Stanislaus Council of Governments 775,208 47,484 822,692 Tehama County Transportation Commission 89,295 1,781 91,076 Trinity County Transportation Commission 18,983 834 19,817 Tulare County Association of Governments 664,454 57,752 722,206 Tuolumne County Transportation Council 75,708 2,355 78,063 Ventura County Transportation Commission 1,187,969 198,481 1,386,450 State Totals $ 55,373,000 $ 55,373,000 $ 110,746,000

038 STATE CONTROLLER'S OFFICE 2020-21 STATE OF GOOD REPAIR PROGRAM ESTIMATED AVAILABLE AMOUNT BASED ON PUC 99314 ALLOCATION DETAIL JANUARY 31, 2020

Estimated Available 2020-21 Amount Based on PUC 99314 Regional Entity and Operator(s) Revenue Basis Allocation Altamont Corridor Express* Alameda County Congestion Management Agency $ NA $ 46,151 Santa Clara Valley Transportation Authority NA 34,444 San Joaquin Regional Rail Commission NA 144,532 Regional Entity Totals 0 225,127 0 (225,127) Metropolitan Transportation Commission Alameda-Contra Costa Transit District, San Francisco Bay Area Rapid Transit District, and the City of San Francisco** 1,925,822,111 20,407,482 Central Contra Costa Transit Authority 11,848,761 125,559 City of Dixon 111,074 1,177 Eastern Contra Costa Transit Authority 6,226,930 65,985 City of Fairfield 2,454,050 26,005 Golden Gate Bridge Highway and Transportation District 128,150,389 1,357,979 Livermore-Amador Valley Transit Authority 5,247,501 55,607 Marin County Transit District 25,028,508 265,221 Napa County Transportation and Planning Agency 1,740,511 18,444 Peninsula Corridor Joint Powers Board 127,483,757 1,350,915 City of Petaluma 740,960 7,852 City of Rio Vista 111,909 1,186 San Francisco Bay Area Water Emergency Transportation Authority 34,734,635 368,075 San Mateo County Transit District 121,853,139 1,291,249 Santa Clara Valley Transportation Authority 348,840,497 3,696,581 City of Santa Rosa 2,403,879 25,473 Solano County Transit 5,281,022 55,962 County of Sonoma 3,386,887 35,890 Sonoma-Marin Area Rail Transit District 25,440,720 269,589 City of Union City 1,747,194 18,515 City of Vacaville 439,501 4,657 Western Contra Costa Transit Authority 7,568,808 80,205 Regional Entity Subtotals 2,786,662,743 29,529,608 Alameda County Congestion Management Agency - Corresponding to ACE* NA 46,151 Santa Clara Valley Transportation Authority - Corresponding to ACE* NA 34,444 Regional Entity Totals 2,786,662,743 29,610,203

Sacramento Area Council of Governments City of Davis (Unitrans) 3,064,565 32,474 City of Elk Grove 2,155,049 22,837 City of Folsom 623,141 6,603 County of Sacramento 1,119,245 11,860 Sacramento Regional Transit System 77,727,924 823,664 Yolo County Transportation District 5,012,875 53,120 Yuba Sutter Transit Authority 1,238,568 13,125 Regional Entity Totals 90,941,367 963,683

------* The amounts allocated to the member agencies of Altamont Corridor Express are included with their corresponding transportation planning agency. ** The amounts for Alameda-Contra Costa Transit District, San Francisco Bay Area Rapid Transit District, and the City of San Francisco are combined.

1 039 STATE CONTROLLER'S OFFICE 2020-21 STATE OF GOOD REPAIR PROGRAM ESTIMATED AVAILABLE AMOUNT BASED ON PUC 99314 ALLOCATION DETAIL JANUARY 31, 2020

Estimated Available 2020-21 Amount Based on PUC 99314 Regional Entity and Operator(s) Revenue Basis Allocation

San Diego Association of Governments North County Transit District 30,424,011 322,396

San Diego Metropolitan Transit System San Diego Metropolitan Transit System 31,939,460 338,455 San Diego Transit Corporation 61,783,746 654,708 San Diego Trolley, Inc. 40,130,381 425,252 Regional Entity Totals 133,853,587 1,418,415

Southern California Regional Rail Authority*** Los Angeles County Metropolitan Transportation Authority NA 1,167,055 Orange County Transportation Authority NA 515,163 Riverside County Transportation Commission NA 250,977 San Bernardino County Transportation Authority NA 259,551 Ventura County Transportation Commission NA 124,678 Regional Entity Totals 0 2,317,424 0 (2,317,424)

Tahoe Regional Planning Agency Tahoe Transportation District 564,133 5,978

Alpine County Transportation Commission County of Alpine 5,370 58

Amador County Transportation Commission Amador Regional Transit System 199,599 2,115

Butte County Association of Governments Butte Regional Transit 1,640,161 17,380 City of Gridley - Specialized Service 20,144 213 Regional Entity Totals 1,660,305 17,593

Calaveras County Local Transportation Commission County of Calaveras 77,984 826

Colusa County Local Transportation Commission County of Colusa 97,681 1,035

Del Norte County Local Transportation Commission Redwood Coast Transit Authority 139,330 1,476

El Dorado County Local Transportation Commission El Dorado County Transit Authority 1,574,062 16,680

------*** The amounts allocated to the member agencies of Southern California Regional Rail Authority are included with their corresponding transportation planning agency.

2 040 STATE CONTROLLER'S OFFICE 2020-21 STATE OF GOOD REPAIR PROGRAM ESTIMATED AVAILABLE AMOUNT BASED ON PUC 99314 ALLOCATION DETAIL JANUARY 31, 2020

Estimated Available 2020-21 Amount Based on PUC 99314 Regional Entity and Operator(s) Revenue Basis Allocation

Fresno County Council of Governments City of Clovis 1,691,653 17,926 City of Fresno 12,478,008 132,227 Fresno County Rural Transit Agency 1,378,719 14,610 Regional Entity Totals 15,548,380 164,763

Glenn County Local Transportation Commission County of Glenn Transit Service 105,376 1,117

Humboldt County Association of Governments City of Arcata 238,899 2,532 City of Blue Lake 0 0 City of Eureka 1,103,559 11,694 Humboldt Transit Authority 3,602,485 38,175 Regional Entity Totals 4,944,943 52,401

Imperial County Transportation Commission Imperial County Transportation Commission 2,046,063 21,682 Quechan Indian Tribe 21,014 223 Regional Entity Totals 2,067,077 21,905

Inyo County Local Transportation Commission None None

Kern Council of Governments City of Arvin 83,020 880 City of California City 20,871 221 City of Delano 147,093 1,559 Golden Empire Transit District 6,407,925 67,903 County of Kern 1,137,877 12,058 City of McFarland 15,037 160 City of Ridgecrest 208,177 2,206 City of Shafter 58,829 623 City of Taft 426,961 4,524 City of Tehachapi 28,664 304 City of Wasco 29,374 311 Regional Entity Totals 8,563,828 90,749

Kings County Association of Governments City of Corcoran 116,255 1,232 Kings County Area Public Transit Agency 786,362 8,333 Regional Entity Totals 902,617 9,565

Lake County/City Council of Governments Lake Transit Authority 505,595 5,358

Lassen County Local Transportation Commission Lassen Transit Service Agency 151,619 1,607

3 041 STATE CONTROLLER'S OFFICE 2020-21 STATE OF GOOD REPAIR PROGRAM ESTIMATED AVAILABLE AMOUNT BASED ON PUC 99314 ALLOCATION DETAIL JANUARY 31, 2020

Estimated Available 2020-21 Amount Based on PUC 99314 Regional Entity and Operator(s) Revenue Basis Allocation

Los Angeles County Metropolitan Transportation Authority Antelope Valley Transit Authority 19,170,688 203,147 City of Arcadia 1,497,685 15,871 City of Claremont 547,365 5,800 City of Commerce 4,428,702 46,930 City of Culver City 15,486,831 164,110 Foothill Transit Zone 67,873,297 719,237 City of Gardena 13,850,884 146,775 City of La Mirada 770,009 8,160 Long Beach Public Transportation Company 54,963,745 582,438 City of Los Angeles 92,932,856 984,788 County of Los Angeles 5,587,765 59,212 Los Angeles County Metropolitan Transportation Authority 1,235,116,553 13,088,239 City of Montebello 19,894,910 210,822 City of Norwalk 8,492,893 89,997 City of Redondo Beach 2,931,763 31,067 City of Santa Clarita 23,386,832 247,825 City of Santa Monica 49,504,384 524,586 Southern California Regional Rail Authority*** 218,691,705 NA City of Torrance 24,506,666 259,691 Regional Entity Subtotals 1,859,635,533 17,388,695 Los Angeles County Metropolitan Transportation Authority - Corresponding to SCRRA*** NA 1,167,055 Regional Entity Totals 1,859,635,533 18,555,750

Madera County Local Transportation Commission City of Chowchilla 235,253 2,493 City of Madera 203,280 2,154 County of Madera 52,381 555 Regional Entity Totals 490,914 5,202

Mariposa County Local Transportation Commission County of Mariposa 63,099 669

Mendocino Council of Governments Mendocino Transit Authority 951,502 10,083

Merced County Association of Governments Transit Joint Powers Authority of Merced County 1,736,430 18,401 Yosemite Area Regional Transportation System (YARTS) 1,644,002 17,421 Regional Entity Totals 3,380,432 35,822

Modoc County Local Transportation Commission Modoc Transportation Agency - Specialized Service 107,807 1,142

------*** The amounts allocated to the member agencies of Southern California Regional Rail Authority are included with their corresponding transportation planning agency.

4 042 STATE CONTROLLER'S OFFICE 2020-21 STATE OF GOOD REPAIR PROGRAM ESTIMATED AVAILABLE AMOUNT BASED ON PUC 99314 ALLOCATION DETAIL JANUARY 31, 2020

Estimated Available 2020-21 Amount Based on PUC 99314 Regional Entity and Operator(s) Revenue Basis Allocation

Mono County Local Transportation Commission Eastern Sierra Transit Authority 2,759,425 29,241

Transportation Agency for Monterey County Monterey-Salinas Transit 20,186,410 213,911

Nevada County Local Transportation Commission County of Nevada 390,192 4,135 City of Truckee 319,369 3,384 Regional Entity Totals 709,561 7,519

Orange County Transportation Authority City of Laguna Beach 2,405,038 25,486 Orange County Transportation Authority 86,018,663 911,519 Regional Entity Subtotals 88,423,701 937,005 Orange County Transportation Authority - Corresponding to SCRRA*** NA 515,163 Regional Entity Totals 88,423,701 1,452,168

Placer County Transportation Planning Agency City of Auburn 21,850 232 County of Placer 4,593,182 48,673 City of Roseville 1,243,374 13,176 Regional Entity Totals 5,858,406 62,081

Plumas County Local Transportation Commission County of Plumas 112,493 1,192 County Service Area 12 - Specialized Service 87,506 927 Regional Entity Totals 199,999 2,119

Riverside County Transportation Commission City of Banning 215,749 2,286 City of Beaumont 239,445 2,537 City of Corona 372,538 3,948 Palo Verde Valley Transit Agency 119,828 1,270 City of Riverside - Specialized Service 443,069 4,695 Riverside Transit Agency 16,090,992 170,512 Sunline Transit Agency 12,451,750 131,948 Regional Entity Subtotals 29,933,371 317,196 Riverside County Transportation Commission - Corresponding to SCRRA*** NA 250,977 Regional Entity Totals 29,933,371 568,173

Council of San Benito County Governments San Benito County Local Transportation Authority 155,747 1,650

------*** The amounts allocated to the member agencies of Southern California Regional Rail Authority are included with their corresponding transportation planning agency.

5 043 STATE CONTROLLER'S OFFICE 2020-21 STATE OF GOOD REPAIR PROGRAM ESTIMATED AVAILABLE AMOUNT BASED ON PUC 99314 ALLOCATION DETAIL JANUARY 31, 2020

Estimated Available 2020-21 Amount Based on PUC 99314 Regional Entity and Operator(s) Revenue Basis Allocation

San Bernardino County Transportation Authority Morongo Basin Transit Authority 1,119,708 11,865 Mountain Area Regional Transit Authority 462,522 4,901 City of Needles 52,876 560 Omnitrans 22,013,739 233,274 Victor Valley Transit Authority 4,530,447 48,008 Regional Entity Subtotals 28,179,292 298,608 San Bernardino County Transportation Authority - Corresponding to SCRRA*** NA 259,551 Regional Entity Totals 28,179,292 558,159

San Joaquin Council of Governments Altamont Corridor Express * 21,244,873 NA City of Escalon 52,972 561 City of Lodi 785,357 8,322 City of Manteca 52,410 555 City of Ripon 27,647 293 San Joaquin Joint Powers Authority 0 0 San Joaquin Regional Transit District 11,407,376 120,881 City of Tracy 161,202 1,708 Regional Entity Subtotals 33,731,837 132,320 San Joaquin Regional Rail Commission - Corresponding to ACE* NA 144,532 Regional Entity Totals 33,731,837 276,852

San Luis Obispo Area Council of Governments City of Arroyo Grande - Specialized Service 0 0 City of Atascadero 37,499 397 City of Morro Bay 35,785 379 City of Pismo Beach - Specialized Service 0 0 City of San Luis Obispo Transit 777,520 8,239 San Luis Obispo Regional Transit Authority 1,680,458 17,807 South County Area Transit 227,853 2,415 Regional Entity Totals 2,759,115 29,237

Santa Barbara County Association of Governments City of Guadalupe 74,621 791 City of Lompoc 1,065,309 11,289 County of Santa Barbara 224 3 Santa Barbara County Association of Governments (SBCAG) 1,056,667 11,197 Santa Barbara Metropolitan Transit District 13,348,752 141,454 City of Santa Maria 837,886 8,879 City of Solvang 76,790 814 Regional Entity Totals 16,460,249 174,427

Santa Cruz County Transportation Commission Santa Cruz Metropolitan Transit District 33,388,127 353,806

------* The amounts allocated to the member agencies of Altamont Corridor Express are included with their corresponding transportation planning agency. *** The amounts allocated to the member agencies of Southern California Regional Rail Authority are included with their corresponding transportation planning agency.

6 044 STATE CONTROLLER'S OFFICE 2020-21 STATE OF GOOD REPAIR PROGRAM ESTIMATED AVAILABLE AMOUNT BASED ON PUC 99314 ALLOCATION DETAIL JANUARY 31, 2020

Estimated Available 2020-21 Amount Based on PUC 99314 Regional Entity and Operator(s) Revenue Basis Allocation

Shasta Regional Transportation Agency Redding Area Bus Authority 1,525,574 16,166

Sierra County Local Transportation Commission County of Sierra - Specialized Service 19,627 209

Siskiyou County Local Transportation Commission County of Siskiyou 189,129 2,004

Stanislaus Council of Governments City of Ceres 68,984 731 City of Modesto 3,309,400 35,069 County of Stanislaus 772,640 8,187 City of Turlock 329,988 3,497 Regional Entity Totals 4,481,012 47,484

Tehama County Transportation Commission County of Tehama 168,070 1,781

Trinity County Transportation Commission County of Trinity 78,726 834

Tulare County Association of Governments City of Dinuba 218,598 2,316 City of Porterville 837,876 8,879 City of Tulare 550,504 5,834 County of Tulare 914,810 9,694 City of Visalia 2,910,774 30,845 City of Woodlake 17,283 184 Regional Entity Totals 5,449,845 57,752

Tuolumne County Transportation Council County of Tuolumne 222,204 2,355

Ventura County Transportation Commission City of Camarillo 203,934 2,161 Gold Coast Transit District 5,458,596 57,843 City of Moorpark 269,530 2,856 City of Simi Valley 485,141 5,141 City of Thousand Oaks 547,528 5,802 Regional Entity Subtotals 6,964,729 73,803 Ventura County Transportation Commission - Corresponding to SCRRA*** NA 124,678 Regional Entity Totals 6,964,729 198,481

STATE TOTALS $ 5,225,463,050 $ 55,373,000

------*** The amounts allocated to the member agencies of Southern California Regional Rail Authority are included with their corresponding transportation planning agency.

7 045 ITEM 8b

046 The Public Transportation Services of the Transit Joint Powers Authority for Merced County 369 W. 18th Street .. Merced, CA 95340 .. (209) 723-3100 .. (209) 723-0322 fax .. mercedthebus.com

ITEM 8b MEMORANDUM

DATE: August 14, 2020

TO: Transit Joint Powers Authority for Merced County

FROM: Christine Chavez, Transit Manager

RE: ACTION: Approve project allocation for submittal to Caltrans – Division of Rail and Mass Transportation (DRMT) for Transit and Intercity Rail Capital Program FY 2020

SUMMARY

Staff is preparing to submit a project allocation request to Caltrans – Division of Rail and Mass Transportation (DRMT) for the Transit and Intercity Rail Capital Program (TIRCP). Transit Joint Powers Authority for Merced County (TJPAMC) was awarded $3,112,000 for three (3) electric buses in an effort to improve air quality and the economic growth in Merced County, the Gateway to Yosemite.

A Board Resolution is required to authorize:

• The submittal of the project allocation for FY 2020 Transit and Intercity Rail Capital Program for the awarded amount of $3,112,000; and

• The Transit Joint Powers Authority for Merced County Executive Director or designee to sign and execute documents related to the grant program as well as executing Caltrans-DRMT Standard Agreement Contract.

REQUESTED ACTION

Adopt Resolution No. 2020/08-20-03 authorizing the project allocation submittal for the acquisition of three (3) 35’-40’ zero-emission electric buses and depot chargers, and authorizing the Transit Joint Powers Authority Executive Director to sign and execute documents related to the grant program as well as executing Caltrans- DRMT Standard Agreement contract.

BACKGROUND

The Transit and Intercity Rail Capital Program (TIRCP) was created by Senate Bill (SB) 862 and modified by Senate Bill 9, to provide grants from the Greenhouse Gas Reduction Fund (GGRF) to fund transformative capital improvements that will modernize California’s intercity, commuter, and urban rail systems, and bus and ferry transit systems, to significantly reduce emissions of greenhouse gases, vehicle miles traveled, and congestion.

The California State Transportation Agency (CalSTA) released a Call for Projects on October 18, 2019 for the next cycle of Transit and Intercity Rail Capital Program funding, administered by Caltrans – Division of Rail and

047 Mass Transportation (DRMT). There have been three prior cycles of TIRCP funding, in which the California State Transportation Agency has awarded $5.3 billion in funding to 56 projects throughout the state.

Staff submitted application to Caltrans – Division of Rail and Mass Transportation for the Transit and Intercity Rail Capital Project to acquire three (3) 35’-40’ zero-emission electric buses and depot chargers to implement expansion on service frequencies and service area(s) north of Merced. TJPAMC was awarded $3,112,000 (full amount requested) in April 2020 and the total budget for the project was $3,696,513. Initially, TJPAMC proposed the local grant match to consist of $585,000 through the CalSTART Hybrid and Zero-Emission Truck and Bus Voucher Incentive (HVIP) or California VW Mitigation Trust but those programs have since run out of funding and are not available at this time. Therefore, TJPAMC will continue to seek funding sources, including the a request State of Good Repair (SGR) funds for FY 2021/22.

If you have any questions regarding this staff report, please contact Christine Chavez at 209.723.3153 x509 or [email protected].

PAST ACTION TAKEN

February 20, 2020: The Governing Board authorized the project funding application submittal for the acquisition of three (3) 35’-40’ zero-emission electric buses and depot chargers, and authorized the Transit Joint Powers Authority Executive Director to sign and execute documents related to the grant program as well as executing Caltrans-DRMT Standard Agreement Contract.

FISCAL IMPACT

Approval of the project allocation provides project acceptance and additional revenue for TJPAMC for transit capital improvement projects in the amount of $3,112,000 to acquire zero-emission buses to replace aged fleet including a 1 vehicle expansion to the fleet.

The Technical Review Board concurs with the requested action.

REQUESTED ACTION

ATTACHMENTS

Resolution 2020/08-20-03 2020 TIRCP Award List 2020 TIRCP Detailed Project Award Summary TIRCP Master Agreement Template

048 Transit Joint Powers Authority for Merced County

RESOLUTION No. 2020/08-20-03

AUTHORIZATION FOR THE EXECUTION OF A MASTER AGREEMENT AND PROGRAM SUPPLEMENTS FOR STATE-FUNDED TRANST PROJECT WITH CALTRANS DIVISION OF RAIL AND MASS TRANSPORTATION FOR THE TRANSIT AND INTERCITY RAIL CAPITAL PROGRAM FOR THE FOLLOWING PROJECT(S): PURCHASE THREE (3) ZERO-EMISSION 35-40 FOOT ELECTRIC BUSES AND ASSOCIATED DEPOT CHARGERS

WHEREAS, the Transit Joint Powers Authority for Merced County (TJPAMC) is an eligible project sponsor and may receive funding from the Federal Transit Administration for transit projects; and

WHEREAS, the California State Department of Transportation (Caltrans) – Division of Rail and Mass Transportation (DRMT) with California State Transportation Agency responsible for the administering and distributing of the Transit and Intercity Rail Capital Program funds; and

WHEREAS, the statutes related to state-funded transit projects require local or regional implementing agency to execute an agremenet with Caltrans before it can be reimbursed for project expenditures; and

WHEREAS, Caltrans utilizes Master Agreements for State-funded transit projects, along with associated Program Supplements, for the purpose of administering and reimbursing state transit funds to local agencies; and

WHEREAS, the Transit Joint Powers Authority for Merced County (TJPAMC) wishes to delegate authorization to execute these documents and any amendments thereto to Stacie Guzman, Executive Director and/or her designee.

WHEREAS, the Transit Joint Powers Authority for Merced County wishes to implement the following project(s) listed above,

NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Transit Joint Powers Authority for Merced County (TJPAMC) that the fund recipient agrees to comply with all conditions and requirements set forth in the Certification and Assurances and applicable statutes, regulations and guidelines for all funded transit projects.

NOW THEREFORE, BE IT FURTHER RESOLVED that Stacie Guzman, Executive Director be authorized to execute the Master Agreement and all Program supplements for State- Funded Transit Projects and any amendments thereto with the California Department of Transportation.

049

NOW, THEREFORE, BE IT FURTHER RESOLVED by the Board of Directors of the Transit Joint Powers Authority for Merced County (TJPAMC) that it hereby authorizes the submittal of the following project proposal(s) to California State Department of Transportation (Caltrans) – Division of Rail and Mass Transportation.

The foregoing Resolution was introduced at the regular meeting of the Board of the Transit Joint Powers Authority for Merced County, held on the 20th day of August, 2020 by ______, who moved its adoption, which motion was duly seconded by ______, and which was adopted by the following vote:

AYES:

NOES:

ABSENT:

ATTEST: AGENCY BOARD DESIGNEE:

______Stacie Guzman, Executive Director Paul Creighton, Chairperson Transit Joint Powers Authority Transit Joint Powers Authority for Merced County for Merced County

DATE: ______

050

Transit and Intercity Rail Capital Program 2020 Awards Fourth Round Selected Projects — 5-Year Program of Projects

# Agency Project Title Key Project Elements TIRCP Funds Total Project Cost Awarded 1 Antelope Valley Reaching the Most Purchase of 11 zero emission battery electric $6,503,000 $8,481,000 Transit Authority Transit-Vulnerable: buses and supportive charging infrastructure to (AVTA) AVTA’s Zero allow for expansion of the zero-emission bus Emission fleet and implement a new zero-emission ‘Microtransit’ and microtransit service that is fully integrated into Bus Expansion local and regional intermodal transit networks. Proposal 2 Bay Area Rapid The Transbay Expansion of the Core Capacity rail car fleet by $107,100,000 $3,536,400,000 Transit (BART) Corridor Core 34 vehicles to 306 cars to support the Capacity Program: completion of the Core Capacity Program, Vehicle Acquisition allowing rail service through the Transbay tube to increase from 23 to 30 trains per hour in each direction, as well as the operation of 10-car trains on all service in peak hours. 3 Capitol Corridor Sacramento Valley Construction of a new northside station access $3,914,000 $6,014,000 Joint Powers Station (SVS) route to connect the Sacramento Valley Station Authority (CCJPA), Transit Center to the future Railyards Plaza where 10,000 with City of housing units are planned. Includes funding for Sacramento, SacRT, key service integration efforts related to & Downtown improving light rail and regional bus service to Railyards Venture, the station, including an I-5 Northbound Ramp LLC Reconfiguration Study, a Bus Layover Facility Study, and a Downtown Sacramento Service Integration Study. 4 City of Inglewood Inglewood Transit Construction of a 1.6-mile electrically powered $95,200,000 $1,016,000,000 Connector Project automated people mover (APM) system and three new stations in the City of Inglewood. The project will create a new connection for passengers directly from the LA Metro Crenshaw/LAX Line’s Downtown Inglewood Station to new housing and employment centers, and regionally serving sports and entertainment including the Los Angeles Sports and Entertainment District (LASED) at Hollywood Park/SoFi Stadium and the proposed Inglewood Basketball and Entertainment Center (IBEC) Project. The project will connect the City of Inglewood’s high growth areas with LA Metro’s regional rail system.

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051

Transit and Intercity Rail Capital Program 2020 Awards 5 Lake Transit North State Construction of a new transit center in Clearlake $12,994,000 $13,344,264 Authority Intercity Bus and purchase 4 hydrogen fuel-cell buses with System associated infrastructure. The project would expand service to out of county destinations, including the Sonoma County Airport and the Santa Rosa Bus Terminal in Downtown Santa Rosa. Hydrogen fuel cell technology is used in order to allow extended range services to be operated, contributing to increased ridership. 6 Long Beach Transit LBT/UCLA Electric Purchase of 5 zero-emission battery- electric $6,451,000 $6,481,000 Commuter Express buses and the construction of charging infrastructure to create a zero-emission over- the-road coach commuter route between the Greater Long Beach area and the University of California, Los Angeles (UCLA). 7 Los Angeles County Metrolink Antelope Add targeted capacity-increasing infrastructure, $107,050,000 $220,850,000 Metropolitan Valley Line Capital increase service in step with new capacity, and Transportation and Service assess the feasibility of rail multiple unit (RMU) Authority Improvements and zero-emission propulsion service through a (LA Metro), pilot project on the Metrolink Antelope Valley with Southern Line (AVL). Together, the components will allow California Regional regular 60-minute bi-directional service on the Rail Authority entire line, and 30-minute bi-directional service (Metrolink) between Los Angeles Union Station and Santa Clarita. 8 Los Angeles- San Building Up Control: Increase ridership through service restructuring, $38,743,000 $87,196,969 Diego-San Luis LOSSAN Service increased frequencies, and longer trains made Obispo Rail Corridor Enhancement possible by relocation and construction of a new Agency (LOSSAN) Program Central Coast Layover Facility, design and construction of a San Diego County Layover and Maintenance Facility, and investment in the overhaul and modernization of the Pacific Surfliner railcars. 9 Sacramento Light Rail Purchase of 8 new low-floor light rail vehicles to $23,600,000 $47,200,000 Regional Transit Modernization and enable low-floor operations on the Gold Line. District Expansion of Low- This project leverages investment in targeted Floor Fleet low-floor conversions along the Gold Line awarded in 2018. 10 San Bernardino West Valley Construct a green, state-of-the-art BRT system $15,000,000 $286,966,000 County Connector Bus that will improve corridor mobility, transit Transportation Rapid Transit Phase efficiency and provide clean and efficient transit Authority (SBCTA) 1 & Zero-Emission service connecting the cities of Pomona, & Omnitrans Bus Initiative Montclair, Ontario, and Rancho Cucamonga. The project will provide connections to the Ontario International Airport passenger terminals from the Metrolink San Bernardino Line in Rancho Cucamonga as well as the Riverside Line at Downtown Pomona.

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052

Transit and Intercity Rail Capital Program 2020 Awards 11 San Diego SDConnect: San The construction of an additional track and $12,100,000 $35,944,000 Association of Diego Rail platform along a one mile stretch in El Cajon to Governments Improvement allow for the Green Line and Orange Line to (SANDAG), with San Program terminate at the El Cajon Transit Center, with a Diego MTS & North Trolley shuttle continuing to provide service County Transit between El Cajon Transit Center and Santee District Trolley Station. This would relieve operational constraints currently impacting the entire line, while still providing service between El Cajon and Santee. Includes funds for advancing phase 5 of the Del Mar Bluffs Stabilization Project. 12 San Francisco Core Capacity Implements two of the three highest priority $41,668,000 $86,948,000 Municipal Program routes in the Muni Forward program, which Transportation includes a combination of transit signal priority, Agency (SFMTA) transit-only lanes, stop consolidation, and complementary facility and pedestrian improvements. Included in the award are a set of targeted improvements to two key rail corridors—the J and M-Lines. Project will increase near term capacity and efficiency as well as build service capacity and enable future growth of the system. Includes funding for project development to advance the Train Control Upgrade Program and the third Muni Forward corridor.

13 Santa Monica Big For People, Place Purchase 7 zero emission buses to enhance and $1,105,000 $6,743,000 Blue Bus and Planet: extend Route 14 from Playa Vista to Inglewood, Connecting bringing new transit opportunities to Inglewood to disadvantaged communities, while also Regional integrating light rail and bus services. Opportunities 14 Solano Solano Regional Improve the frequency, reliability, and access of $10,400,000 $17,150,000 Transportation Transit transit options available to Solano County Authority (STA) Improvements commuters and travelers by improving Phase 2 integration of SolanoExpress regional bus service with other regional transit providers such as BART, WETA, and Capitol Corridor. STA has coordinated with other commuter bus providers such as Napa Valley Vine and Contra Costa County Connection to share inductive charging at regional transit facilities, seeking to reduce GHG for all systems. Investments are planned for the Vacaville Transit Center, Fairfield-Vacaville Hannigan Rail Station, Fairfield Transit Center, Vallejo Transit Center, Suisun City Amtrak Station, Sacramento Valley Station, and the Walnut Creek BART Station.

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053

Transit and Intercity Rail Capital Program 2020 Awards 15 Torrance Transit Torrance Transit Purchase 7 electric buses to expand services on $6,000,000 $7,200,000 Department Bus Service Line 4X (between Torrance and Downton LA), on Enhancement an extended line 10 (serving the Metro Green Program Line Crenshaw station and the Inglewood Stadium and Entertainment District, an extended line 9 (newly serving the Kaiser Permanente South Bay Medical Center), and the acquisition of the western portion of LA Metro’s Route 130 between the Blue Line Artesia Station and the South Bay Galleria Mall. 16 Transit Join Powers Improving Air Purchases 3 zero-emission electric buses to $3,112,000 $3,696,513 Authority of Quality and the increase fleet size and extend bus service levels Merced County Economic Growth on 2 fixed routes in Merced county. The (TJPAMC) with Electric Buses proposed project allows for an expansion of in Merced County, service frequency on one existing inter- the Gateway to community route connecting rural communities Yosemite to the city of Merced. The route currently operates on limited frequency and is not enough to keep up with existing demand. The project also expands local service on one local route to provide better bus service to a developed residential area currently with limited access to service. 17 San Francisco Bay Expansion of WETA Acquisition of a new all-electric vessel and $9,060,000 $54,670,000 Area Water ferry services related shoreside charging infrastructure to Emergency provide a critical 2.6-mile link between the Transportation Mission Bay and the Downtown San Francisco Authority (WETA) Ferry Terminals. TOTALS $500,000,000 $5,441,284,746

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054

Transit and Intercity Rail Capital Program Fourth Round Selected Projects – Project Detail Summary April 21, 2020

Total Funding Awarded: $500 million awarded towards 17 projects, totaling over $5.4 billion of total project cost

Estimated 5,016,00 metric tons of CO2e (MTCO2e) reduced

All projects are located within disadvantaged communities or low-income communities and contribute direct, meaningful and assured benefits to disadvantaged communities, low-income communities or low-income households (also referred to as Priority Populations)

055 1. Antelope Valley Transit Authority (AVTA)

Project: Reaching the Most Transit-Vulnerable: AVTA’s Zero Emission ‘Microtransit’ and Bus Expansion Proposal

Award: $6,503,000 Total Budget: $8,481,000

Estimated TIRCP GHG Reductions 12,000 MTCO2e (Additional project benefits accrue to the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Program, which is anticipated to contribute $1,355,000 to the project)

Purchase of 11 zero emission battery electric buses and supportive charging infrastructure to allow for expansion of the zero-emission bus fleet and implement a new zero-emission microtransit service that is fully integrated into local and regional intermodal transit networks, enhancing zero emission transit interconnectivity throughout the region and extending zero emission transit into some of the most transit-vulnerable communities in the region.

The project will significantly improve zero emission bus transit connectivity through intermodal connections between bus routes as well as between bus and rail service, with direct benefits to communities in and around the Antelope Valley as well as through increased interconnections into Los Angeles. By implementing the new microtransit service, new connections are created to regional transit options such as Metrolink, which provide transit-dependent customers in priority populations with more and faster regional travel options through the Los Angeles Basin. Further, AVTA has in place a Community Workforce Agreement which establishes a goal of 30% for all construction labor hours worked to be completed either by veterans, local residents, or individuals who have completed a pre-apprenticeship program.

The project also expands on AVTA’s newly developed microtransit phone application and website to incorporate Google Transit integration, which will provide passengers with a more seamless travel experience and enhance local and regional network integration.

Technical assistance will be provided by the California Department of Transportation to integrate bus procurement efforts with statewide zero emission bus efforts, and to ensure service integration with other adjoining services. Technical assistance will also be provided by the Department of Transportation to ensure hardware and software systems involved in providing and processing connectivity, data and information are consistent with statewide integration efforts, so that maximum ridership benefits and greenhouse gas reduction benefits are achieved.

Project is expected to be completed by 2022.

Key Project Ratings: Cost per GHG Ton Reduced: Medium-High Increased Ridership: Medium Service Integration: Medium-High 2

056 Improves Safety: Medium Project Readiness: High Funding Leverage: Medium Multi-Agency Coordination/Integration: Medium Priority Population Benefits: Medium-High Housing Co-Benefits: Medium-Low

2. Bay Area Rapid Transit (BART)

Project: The Transbay Corridor Core Capacity Program: Vehicle Acquisition

Award: $107,100,000 Total Budget: $3,536,400,000

Estimated TIRCP GHG Reductions: 2,495,000 MTCO2e

(This is a contingent award that requires a federal Full Funding Grant Agreement prior to receiving the state funds from TIRCP. The agreement is expected to be signed in the near future.)

(This project is an additive phase to the 2018 selected project for BART’s Transbay Corridor Core Capacity Program project, which also includes funding for the Train Control System, as described in the 2018 TIRCP award announcement. GHG benefits are based on the incremental increase associated with updated ridership and emissions benefits and with running an additional 34 rail cars on the system).

Expansion of the Core Capacity rail car fleet by 34 vehicles to 306 cars to support the completion of the Core Capacity Program, allowing rail service through the Transbay tube to increase from 23 to 30 trains per hour in each direction, as well as the operation of 10-car trains on all service in peak hours. Over the useful life of the project, ridership through the Transbay tube is expected to increase by 200,000 riders per day, making the completion of this project essential to the mobility of the Bay Area.

This expansion will allow BART to decrease current headways on each line from 15 minutes to 12 minutes, with more frequent service on high-demand segments. The Core Capacity Program will replace systems that are at the end of their service life and enhance system reliability and safety. This increase in frequency and capacity of the BART system is expected to increase ridership levels on other transit systems throughout the Bay Area. This increase in frequency and capacity of the BART system is expected to provide improved service and transit connectivity for priority populations throughout the Bay Area. Fully 30% of all BART stations are located within priority population communities, providing residents important connections to local, regional, and intercity transit options.

The project directly contributes to enhanced workforce development and the local economy. Bombardier, the company under contract to complete the cars being purchased, opened a new facility in Pittsburg, California to fulfill the large purchase orders related to this project.

057 Total funding from TIRCP is $425,700,000 over two cycles. Due to the extended timeline for project delivery that goes beyond this cycle’s 5-year program (completion date: 2031), the project is expected to receive allocations over the life of the implementation schedule from both the 2018 and 2020 awards.

Key Project Ratings: Cost per GHG Ton Reduced: High Increased Ridership: High Service Integration: Medium-High Improves Safety: High Project Readiness: High Funding Leverage: High Multi-Agency Coordination/Integration: Medium Priority Population Benefits: High Housing Co-Benefits: High

3. Capitol Corridor Joint Powers Authority (CCJPA), with co-applicants of the City of Sacramento, Sacramento Regional Transit District (SacRT) and Downtown Railyards Venture, LLC (DRV)

Project: Sacramento Valley Station (SVS) Transit Center

Award: $3,914,000 Total Budget: $6,014,000

Estimated TIRCP GHG Reductions: 39,000 MTCO2e

Construction of a new northside station access route to connect the Sacramento Valley Station (SVS) to the future Railyards Plaza. The Railyards development directly north of the SVS is adding 10,000 housing units along with new destination centers and thousands of jobs to the area. With developments in the Railyards and River District prioritizing transit ridership and active transportation, providing a short, direct connection to the station will unlock new transit ridership at the SVS.

Also provides funding for key service integration efforts related to improving light rail and regional bus service to the station that will drive higher ridership for transit and intercity rail in the future, including:

(1) an I-5 Northbound Ramp Reconfiguration Study to determine how shifting the onramp can benefit the station area; (2) a Bus Layover Facility Study to determine suitable locations for a facility to accommodate regional, local and zero emission charging infrastructure; (3) and a Downtown Sacramento Service Integration Study that will involve CCJPA, SACOG, the City of Sacramento, and local and regional bus operators, to support route modifications and timing adjustments that better synchronize Sacramento’s regional bus system with intercity rail and local transit needs, and identify the full benefits of improved bus and light rail infrastructure at the SVS.

058 These plans will be developed in cooperation with many transit partners and agencies throughout the Sacramento region, and with additional technical assistance provided by the California Department of Transportation, in order to ensure integration of regional and interregional capital improvements and service.

Project is expected to be completed by 2022.

Key Project Ratings: Cost per GHG Ton Reduced: High Increased Ridership: Medium-Low Service Integration: Medium-Low Improves Safety: Medium Project Readiness: Medium-Low Funding Leverage: Medium Multi-Agency Coordination/Integration: High Priority Population Benefits: Medium Housing Co-Benefits: High

4. City of Inglewood

Project: Inglewood Transit Connector

Award: $95,200,000 Total Budget: $1,016,000,000

Estimated TIRCP GHG Reductions: 772,000 MTCO2e

Construction of a 1.6-mile electrically powered automated people mover (APM) system and three new stations in the City of Inglewood. The project will create a new connection for passengers directly from the LA Metro Crenshaw/LAX Line’s Downtown Inglewood Station to new housing and employment centers, and regionally serving sports and entertainment including the Los Angeles Sports and Entertainment District (LASED) at Hollywood Park/SoFi Stadium and the proposed Inglewood Basketball and Entertainment Center (IBEC) Project.

The project will connect the City of Inglewood’s high growth areas in Downtown Inglewood with LA Metro’s regional rail system and provide residents with high quality and efficient transit options. Four Transit-Oriented Development (TOD) Plans have been adopted, which encourage housing, retail and inclusionary benefits to residents of Inglewood. Key to this project is the nearly 1000 housing units planned as part of the TOD Plans with significant affordable housing units included in the plans. Additionally, in the next decade alone, the City of Inglewood will host the Super Bowl in 2022, the 2026 FIFA World Cup, and the 2028 Summer Olympic Games. Bolstering the regional transit system and closing this last mile gap to the LA Metro rail system is key to hosting these successful mega-events. Up to 11 4-car trains will be able to operate on the system during peak demand.

The three new stations that will be constructed are located within the census tract boundaries of multiple priority populations, and more than 90% of the project corridor is

059 located in priority population communities. These communities will benefit from improved access to transit and employment opportunities, a reduction in air pollutants and decreasing health disparities experienced by priority populations. Additional planning and outreach will be conducted after project award to ensure benefits to priority populations are enhanced and so that thorough coordination is achieved with other projects in the region that are recommended for funding, including Santa Monica Big Blue Bus and the Torrance Transit Department. Project is recommended for technical assistance to enhance priority population benefits and assist with the additional planning efforts described, in coordination with the California Department of Transportation. Technical assistance will be provided by the Department of Transportation to ensure service integration with other adjoining services. Technical assistance will also be provided by the Department of Transportation to ensure hardware and software systems involved in providing and processing connectivity, data and information are consistent with statewide integration efforts, so that maximum ridership benefits and greenhouse gas reduction benefits are achieved.

The project is matched by significant investment provided by an array of sales tax commitments, private developer financing, infrastructure impact fees, and city funds. This project delivers additional benefits that will make the regional transit system more attractive to riders, which include residents of these communities and patrons of the sports and entertainment districts.

Due to the extended timeline for delivery that goes beyond this cycle’s 5-year program (completion date: 2026), the project is expected to receive allocations over the life of the implementation schedule.

Key Project Ratings: Cost per GHG Ton Reduced: Medium-High Increased Ridership: Medium-High Service Integration: Medium Improves Safety: Medium Project Readiness: Medium-High Funding Leverage: High Multi-Agency Coordination/Integration: Medium Priority Population Benefits: Medium-High Housing Co-Benefits: High

5. Lake Transit Authority (LTA)

Project: North State Intercity Bus System-Lake County Interregional Transit Center

Award: $12,994,000 Total Budget: $13,344,264

Estimated TIRCP GHG Reductions: 14,000 MTCO2e

Construction of a new transit center in Clearlake and purchase 4 hydrogen fuel-cell buses with associated infrastructure. The project would expand service to out of county 6

060 destinations, including the Sonoma County Airport and the Santa Rosa Bus Terminal in Downtown Santa Rosa. Hydrogen fuel cell technology is used in order to allow extended range services to be operated, contributing to increased ridership.

Development of a new transit facility and purchase of expansion buses provides the opportunity for LTA to meaningfully upgrade and expand their system and provide greater safety and security for their riders. The project can serve as a rural prototype with respect to zero-emission technology in the short run, and further to allow for greater connectivity and access to services and transportation options found only in urban areas, such as air travel or passenger rail, bolstering the state’s transportation network. Lake County is providing an in- kind contribution by selling the parcel where the transit facility will be constructed at 50% below market value.

The project improves geographic equity as the Lake County region ranks among the most economically disadvantaged in California and has a disproportionate number of seniors and disabled persons. In addition, an innovative feature of this project is the focus on enhancing workforce development in the region. Lake County is collaborating with a local college to bolster an Automotive Technology program to help develop a local workforce with the skills to work on transit vehicle repairs in the future.

Project selection was based in part on geographic equity considerations.

Project completion is expected by 2023.

Key Project Ratings: Cost per GHG Ton Reduced: Medium Increased Ridership: Medium Service Integration: Medium-High Improves Safety: High Project Readiness: Medium-High Funding Leverage: Medium-Low Multi-Agency Coordination/Integration: Medium Priority Population Benefits: Medium-High Housing Co-Benefits: Medium

6. Long Beach Transit (LBT)

Project: LBT/UCLA Electric Commuter Express

061 Award: $6,451,000 Total Budget: $6,481,000

Estimated TIRCP GHG Reductions: 9,000 MTCO2e

Purchase of 5 zero-emission battery electric 45-foot over-the-road coaches to increase service on a commuter route between the Greater Long Beach area and the University of California, Los Angeles (UCLA). This service addresses the lack of an existing permanent, convenient commuter service between the City of Long Beach and UCLA, and provides a safe, congestion-reducing service for workforce that would otherwise be driving long distances.

LBT implemented a successful pilot program that operated only during peak hours and had a ridership increase of 179% between April and October 2019. This project will make the service permanent and offers expanded service hours. The route runs along the I-405, one of the most congested urban freeways in the country, directly taking cars off the freeways while providing key connections to other services and destinations including the Long Beach Airport, UCLA, other local transit connections, and existing and future LA Metro rail lines.

LBT has previously conducted extensive community outreach and used community recommendations to directly inform implementation of this new service. The project directly meets a need identified by the community. The new service traverses many priority population communities and additional outreach with specific focus on priority populations is planned as part of project implementation. LBT has committed an in-kind match to continue this outreach throughout implementation.

This service will provide residents with a permanent, commuter-based route that gives customers a high-quality transit option in lieu of driving through a highly congested corridor to get to and from job opportunities.

Project completion is expected by 2023.

Key Project Ratings: Cost per GHG Ton Reduced: Medium Increased Ridership: Medium-High Service Integration: Medium Improves Safety: Medium Project Readiness: High Funding Leverage: Low Multi-Agency Coordination/Integration: Medium-High Priority Population Benefits: Medium-High 8

062 Housing Co-Benefits: Medium-Low

7. Los Angeles County Metropolitan Transportation Authority (LA Metro) and Southern California Regional Rail Authority (Metrolink)

Project: Metrolink Antelope Valley Line Capital and Service Improvements

Award: $107,050,000 Total Budget: $220,850,000

Estimated TIRCP GHG Reductions: 584,000 MTCO2e

The proposed Metrolink Antelope Valley Line Capital and Service Improvements Project will add targeted capacity-increasing infrastructure on the Antelope Valley Line, increase service in step with new capacity, and assess the feasibility of rail multiple unit and zero-emission propulsion service through a pilot project on the Metrolink Antelope Valley Line. The 4 infrastructure projects included allow Metro to initiate regular 60-minute, bi-directional service, followed by introduction of regular 30-minute bi-directional service from Los Angeles Union Station to Santa Clarita, in deployment waves that accelerate delivery of new service as planned under the Southern California Optimized Rail Expansion (SCORE) program.

The 4 infrastructure projects include:

1. Balboa Double Track Extension 2. Lancaster Terminal Improvements 3. Canyon Siding Extension 4. Brighton-McGinley Double Track

This award builds on the investment in Phase 1 of the Southern California Optimized Rail Expansion (SCORE) Program awarded in 2018 and expands those benefits. This award accelerates delivery of key AVL Projects, which provide regional “bookend” capacity for state- supported Intercity and High-Speed Rail, as well as significantly advances the County’s ability to integrate the regional rail system into the Metrolink station communities.

In addition, this project includes funding for a zero-emission rail multiple unit (ZEMU) equipment pilot to assess potential to provide more cost-effective and flexible rail service and reduce the carbon and emissions footprint of rail service. The ZEMU pilot tests rail technology in one of the more challenging Metrolink corridors due to topography, density, temperature variations and elevation differences between Lancaster and Los Angeles. If the pilot project is successful on this corridor, it will bode well for ZEMU operations throughout the entire Metrolink regional rail network and help provide data and performance measurements useful to other agencies in California seeking to implement similar ZEMU rail technology. Technical assistance will be provided by the California Department of Transportation to integrate rail demonstration pilot efforts with statewide rolling stock planning.

Over 1 million residents of the 3.3 million residents in the census tracts in the Antelope Valley station catchment areas are from Disadvantaged Communities. The AVL investments will improve rail mobility and access for these priority populations to major employment centers

063 and other regional destinations, including Hollywood Burbank Airport.

Due to the extended timeline for delivery that goes beyond this cycle’s 5-year program (completion date: 2027), the project is expected to receive allocations over the life of the implementation schedule.

Key Project Ratings: Cost per GHG Ton Reduced: High Increased Ridership: Medium-High Service Integration: High Improves Safety: Medium-High Project Readiness: Medium-High Funding Leverage: Medium-High Multi-Agency Coordination/Integration: High Priority Population Benefits: Medium Housing Co-Benefits: Medium

8. Los Angeles – San Diego – San Luis Obispo Rail Corridor Agency (LOSSAN)

Project: Building Up Control: LOSSAN Service Enhancement Program

Award: $38,743,000 Total Budget: $87,196,969

Estimated TIRCP GHG Reductions: 325,000 MTCO2e

Designs and constructs two new maintenance facilities in San Diego and San Luis Obispo that enable longer trains and better departure times to be operated out of both locations, contributing to both frequency and ridership growth for the Pacific Surfliner. Aligned with needs identified in the 2018 State Rail Plan.

Provides funding for design and construction of a dedicated maintenance, support and storage location for the Pacific Surfliner service in National City, at the southern end of the LOSSAN rail corridor. The facility will allow storage and maintenance of additional and longer trains (up to 7 7-car trains, or equivalent), increasing the efficiency and ridership of services into San Dan Diego. It also will move primary maintenance activities away from the Santa Fe Depot in San Diego, which is primarily surrounded by residential and commercial land uses. In addition, this new facility can be utilized by COASTER service to support service expansion goals within San Diego County, supporting additional opportunities for integration and connectivity to the regional transit network.

Provides for design and construction of an expanded maintenance and layover facility south of the station in San Luis Obispo, allowing for the storage and maintenance of additional and longer trains (up to 4 7-car trains, or equivalent). Allows for train movement between maintenance facility and station without impacting mainline passenger and freight train operations. Facility design and construction will be coordinated with the City of San Luis Obispo to integrate the facility into the community plan for the roundhouse district and 10

064 provide the opportunity for the City to connect the surrounding development within the district to the station in San Luis Obispo by way of a pedestrian and bike trail that will also provide a natural barrier between the facility and the existing and planned developments within the district. Ability to maintain more trainsets in San Luis Obispo is aligned with the State Rail Plan and allows for better departure times that capture higher ridership. Facility is also supportive of future service expansion to northern California once additional investments are made in improving the infrastructure on the Central Coast. The San Luis Obispo investment is coordinated with additional investment through Proposition 1B and the State Transportation Improvement Program, reflected in the project matching funds.

As part of the overall scope of this project, state funding from the Public Transportation Account will be used to enhance the condition of the Pacific Surfliner fleet, providing a fleet that has improved reliability and meets customer expectations. Technical assistance will be provided by the California Department of Transportation to integrate maintenance facility planning with statewide rail planning, facility development, and fleet deployment efforts.

Project benefits are enhanced through complementary service improvements in the corridor awarded in previous years, which includes investments in signal optimization and various capital improvements which prepares the corridor for higher frequency services to be introduced by the Pacific Surfliner.

Key Project Ratings: Cost per GHG Ton Reduced: High Increased Ridership: Medium-High Service Integration: Medium-High Improves Safety: Medium Project Readiness: Medium Funding Leverage: Medium-High Multi-Agency Coordination/Integration: Medium Priority Population Benefits: Medium-Low Housing Co-Benefits: Medium-Low

9. Sacramento Regional Transit (SacRT)

Project: Light Rail Modernization and Expansion of Low-Floor Fleet

Award: $23,600,000 Total Budget: $47,200,000

Estimated TIRCP GHG Reductions: 85,000 MTCO2e

(This project is an additive phase to the 2018 selected project for SacRT’s Accelerating Rail Modernization and Expansion in the Capital Region. GHG benefits are based on the

065 incremental increase associated with updated ridership and emissions benefits associated with running an entirely low-floor fleet on the Gold Line augmenting the targeted low-floor conversions awarded in 2018).

Purchases 8 new low-floor light rail vehicles (LRVs) to enable extensive low-floor fleet operations on the Gold Line, providing increased reliability, access and capacity to riders. Project leverages investment in targeted low-floor conversions along the Gold Line awarded in 2018.

Paired with the 20 LRVs funded by the TIRCP program in 2018, this project will complete a major step towards modernizing its fleet, which will support retaining and attracting new light rail riders. Low-floor LRVs are anticipated to produce operational efficiencies by speeding up train run times and optimizing boarding convenience and safety along with needed increased capacity. These investments support 15-minute service frequencies during weekdays on the Gold Line, along with additional peak-direction express service.

The project supports sustainable housing and land use development while providing meaningful benefits to priority populations by improving mobility and access to transit options. Of SacRT’s 52 light rail stations, 41 are in priority population communities. The project complements investments in a transit-oriented development plan at the 65th Street Station along the Gold Line near Sacramento State University, where there is planned construction of up to 223 housing unit with new retail space. The transit-oriented development, being constructed on excess SacRT property adjacent to the station, includes the reconstruction and modernization of nearby bus stops and new ADA compliant crosswalks, making it easier and safer for residents to connect to transit.

With attention paid to enhancing local workforce development, Sacramento has an established Local Hire and Community Workforce Training Program to facilitate the employment of local residents to develop increased numbers of local skilled workers to meet the requirements of the regional construction economy. The program has a goal of 50% of the workforce hours to be completed by priority apprentices who are residents of targeted zip codes.

Technical assistance will be provided by the California Department of Transportation to ensure service integration with other adjoining services. Technical assistance will also be provided by the Department of Transportation to ensure hardware and software systems involved in providing and processing connectivity, data and information are consistent with statewide integration efforts, so that maximum ridership benefits and greenhouse gas reduction benefits are achieved.

Project completion is expected by 2024.

Key Project Ratings: Cost per GHG Ton Reduced: Medium-High Increased Ridership: Medium Service Integration: Medium-Low Improves Safety: Medium-High Project Readiness: Medium-High Funding Leverage: Medium-High 12

066 Multi-Agency Coordination/Integration: Medium Priority Population Benefits: Medium-High Housing Co-Benefits: Medium

10. San Bernardino County Transportation Authority (SBCTA) & Omnitrans

Project: West Valley Connector Bus Rapid Transit Phase 1 & Zero-Emission Bus Initiative

Award: $15,000,000 Total Budget: $286,966,000

Estimated TIRCP GHG Reductions: 33,000 MTCO2e (Additional project benefits accrue to the Low Carbon Transit Operations Program, which is anticipated to contribute $5,000,000 to the project)

Construction of a 19-mile Bus Rapid Transit (BRT) project that will provide clean and efficient transit service connecting the cities of Pomona, Montclair, Ontario, and Rancho Cucamonga. The project is a collaborative effort of SBCTA, the corridor cities, and OmniTrans, proposed as a 100% zero-emission system, representing the first stage of the San Bernardino County Zero- emission Bus Initiative. The West Valley Connector (WVC) runs parallel to the two most congested freeways in San Bernardino County and population for WVC corridor cities is forecast to increase by 30 percent by 2045, and employment by 29 percent, further increasing the need for a multimodal approach to corridor mobility.

The WVC will provide connections to the Ontario International Airport passenger terminals from the Metrolink San Bernardino Line in Rancho Cucamonga as well as the Riverside Line at Downtown Pomona. It also links other major destinations along the route such as Ontario Mills shopping/entertainment complex, Ontario Convention Center, and Victoria Gardens as well as other mixed-use development in Rancho Cucamonga. It will position the corridor to build on the current local initiatives for transit- oriented development (TOD) and serve substantial numbers of residents in priority populations along the line, providing improved connections to regional transit options, including Metrolink services, and better access to economic opportunities.

The project includes constructing 22 new stations, purchasing 18 zero emission buses, implementing transit signal priority, and approximately 3.5 miles of the route will be constructed as dedicated bus-only lanes with level boarding at median stations. Once implemented, 10-minute service frequencies during the peak and 15-minute frequencies in the off-peak will be achieved, providing a high level of service to the community.

This project is matched by significant investment from an array of local sales tax commitments, federal funding sources, and other state sources. Once implemented, this project will make the regional transit system even more attractive to riders by creating a new, efficient service connecting multiple cities and linking to high-quality connections with Metrolink.

Technical assistance will be provided by the California Department of Transportation to integrate bus procurement efforts with statewide zero emission bus efforts, and to ensure

067 service integration with other adjoining services. Technical assistance will also be provided by the Department of Transportation to ensure hardware and software systems involved in providing and processing connectivity, data and information are consistent with statewide integration efforts, so that maximum ridership benefits and greenhouse gas reduction benefits are achieved.

Project completion is expected by 2023.

Key Project Ratings: Cost per GHG Ton Reduced: Medium-High Increased Ridership: Medium-Low Service Integration: Medium-High Improves Safety: Medium-High Project Readiness: Medium-High Funding Leverage: High Multi-Agency Coordination/Integration: Medium-High Priority Population Benefits: High Housing Co-Benefits: Medium-High

11. San Diego Association of Governments (SANDAG)

Project: SDConnect: San Diego Rail Improvement Program

Award: $12,100,000 Total Budget: $35,944,000

Estimated TIRCP GHG Reductions: 34,000 MTCO2e

The construction of an additional track and platform along a one mile stretch in El Cajon that is currently single-track, to allow for the Green Line and Orange Line to terminate at the El Cajon Transit Center and provide operational flexibility and efficiencies. Most of the 53-mile Trolley network is double-tracked and closing this one-mile gap helps to reduce bottlenecks at this location in the system. A one-car Trolley shuttle would then continue to provide service between El Cajon Transit Center and Santee Trolley Station. This would relieve operational constraints currently impacting the entire line, while still providing service between El Cajon and Santee.

Overall the project will reduce operating costs on the Green Line by efficiently targeting service between busy stations and improve overall system reliability and increases the ability to improve frequency on the Green Line due to the elimination of the single-track segment on the alignment. This will improve mobility and access for residents and priority populations through enhanced and greater service reliability. Over the life of the project, ridership to the trolley system is expected to increase by over 750,000 annually, making it a cost-effective strategy for growing ridership.

Additional planning and outreach is planned during project implementation to ensure benefits to priority populations are enhanced, in coordination with technical assistance 14

068 available through the California Department of Transportation. SANDAG’s Community-Based Organizations (CBO) Working Group is a key coordinator of this ongoing process.

Award includes $4.9 million in funding for work to expand the work achieved by Phase 5 of the Del Mar Bluffs Stabilization Project, in combination with other federal, state and local funds committed and being pursued for the project. Significant investment in stabilizing the rail corridor through the Del Mar Bluffs is critical to a reliable and safe corridor for passenger and goods movement. Technical assistance will be provided by the California Department of Transportation, in order to coordinate the work efforts related to the Del Mar Bluffs Stabilization Project and to ensure integration of regional and interregional capital improvements and service.

Project completion is expected by 2023.

Key Project Ratings: Cost per GHG Ton Reduced: Medium-High Increased Ridership: Medium-Low Service Integration: Medium Improves Safety: Medium-High Project Readiness: Medium Funding Leverage: Medium-High Multi-Agency Coordination/Integration: Medium-High Priority Population Benefits: Medium-Low Housing Co-Benefits: High

12. San Francisco Municipal Transportation Agency

Project: Core Capacity Program

Award: $41,668,000 Total Budget: $86,948,000

Estimated TIRCP GHG Reductions: 369,000 MTCO2e

Implements two of the three highest priority routes in the Muni Forward program, which includes a combination of transit signal priority, transit-only lanes, stop consolidation, and complementary facility and pedestrian improvements. Included in the award are a set of targeted improvements to two key rail corridors—the J and M-Lines.

Specific features of the project include: • Conversion of travel lanes to dedicated transit only lanes. • Redesign of intersections for pedestrian safety, platform access, and transit priority through the addition of new crosswalks, signalization of intersections, and construction of transit and pedestrian bulbs to reduce crossing distance and improve access to trains. • Stop consolidation and realignment of boarding islands to reduce train idle time at

069 intersections. • Installation of wheelchair accessible ramps at several stops. • Upgraded and expanded boarding platforms to accommodate longer trains.

Implementation of the project directly supports efforts by SFMTA to operate the J, K and L- Lines exclusively on the surface without entering the subway while operating the M-line in the subway. This will free up space in the subway to allow for high-frequency shuttle service between the Embarcadero and West Portal, resulting in a 20 percent increase in vehicle volumes in the subway, where existing crowding is most concentrated. Taken together, the project will lead to an increase near term capacity and efficiency of the system as well as build service capacity and enable future growth.

Priority population communities will benefit directly considering that the M-line is a Muni Service Equity Strategy priority line. A high percentage of the neighborhoods that the M-line serves are priority population communities. The project will expand access and enhance reliability for customers. Project is recommended for technical assistance to enhance priority population benefits, including addressing displacement burdens along the corridors, in coordination with the California Department of Transportation.

Includes $1,668,000 in project development funding to advance the both Train Control Upgrade Program and third Muni Forward corridor, which did not receive construction funding in this TIRCP cycle.

Due to the extended timeline for delivery that goes beyond this cycle’s 5-year program (project completion of funded Muni Forward elements: 2026), the project is expected to receive allocations over the life of the implementation schedule.

Key Project Ratings: Cost per GHG Ton Reduced: High Increased Ridership: Medium-High Service Integration: Medium-High Improves Safety: High Project Readiness: Medium-High Funding Leverage: Medium-High Multi-Agency Coordination/Integration: Medium Priority Population Benefits: Medium Housing Co-Benefits: Medium-High

13. Santa Monica Big Blue Bus

Project: For People, Place and Planet: Connecting Inglewood to Regional Opportunities

Award: $1,105,000 Total Budget: $6,743,000

Estimated TIRCP GHG Reductions: 18,000 MTCO2e

070 Procures 7 zero-emission buses to enhance and extend local Route 14 from Playa Vista to Inglewood. Route 14 will be extended an additional 3.6 miles and its southern terminus will be at the new Westchester/Veterans Station on the LA Metro K Line in Inglewood. The route extension creates a new high-quality rail line connection while also providing local residents in Inglewood with a time-saving, direct connection to the jobs-rich areas of Playa Vista and the Westside of Los Angeles.

The new southern terminus of the route extension is 0.6 miles from a non-profit organization that provides housing and other services to veterans and their families, and which currently provides over 600 beds. The northern terminus of the route reaches the Veterans Home of California, a 396-bed long-term healthcare facility for veterans and the campus is proposing to add 1,200 additional permanent supportive housing units.

Project is recommended for technical assistance to enhance priority population benefits and assist with the additional planning efforts described in the TIRCP award to the City of Inglewood, in coordination with the California Department of Transportation and the Torrance Transit Department.

Project completion is expected by 2022.

Key Project Ratings: Cost per GHG Ton Reduced: Medium-High Increased Ridership: Medium-High Service Integration: Medium Improves Safety: Medium Project Readiness: High Funding Leverage: High Multi-Agency Coordination/Integration: Medium-Low Priority Population Benefits: Medium Housing Co-Benefits: Medium-High

14. Solano Transportation Authority (STA)

Project: Solano Regional Transit Improvements Phase 2

Award: $10,400,000 Total Budget: $17,150,000

Estimated TIRCP GHG Reductions: 125,000 MTCO2e 17

071 (Additional project benefits accrue to the Low Carbon Transit Operations Program, which is anticipated to contribute $600,000 to the project)

This project improves the frequency, access, safety and integration of regional transit connections in and around Solano County, and does so in a manner that considers all elements of travel and all segments of the population. While improvements include many benefits to the SolanoExpress system, many other operators will also benefit from the investments. Investments are planned for:

(1) Improvements at the Vacaville Transit Center (VTC) – a new Class I pathway connecting Downtown Vacaville, 250 Transit-Oriented Development housing units and the VTC; a pedestrian promenade connecting 270 Transit-Oriented Development housing units and the VTC; transit signal prioritization around VTC at 3 intersections, in order to save time and increase reliability for transit buses serving the station; and ticketing investments to speed boarding of buses.

(2) Multi-Modal Improvements at the Fairfield-Vacaville Hannigan Rail Station – develop pedestrian and bike access at the south station portal, connecting to new development and opening the facility up to the large military community to the south of the station. The bike and pedestrian improvements will provide first/last mile connections for hundreds of homes and thousands of military personnel that occupy the Travis Air Force Base located less than one mile away. Connect to the Fairfield Train Station Affordable Workforce Housing development, featuring 312 units of affordable housing (deed restricted at 50% and 70% of area median income). Construct a 119-space park and ride lot with vanpool, carpool parking, and electric vehicle charging, increasing ridership on the Capitol Corridor services at the station, primarily using local funding.

(3) Improvements at the Fairfield Transit Center (FTC) – Construct a new SolanoExpress Blue Line stop on the westbound on-ramp to I-80 at West Texas St., saving significant time for westbound travelers. Also construct a new bicycle/pedestrian connection on W. Texas St to connect the new stop to existing parking at the FTC.

Awardee will also implement shared inductive charging infrastructure at five regionally significant locations – Vallejo Transit Center, Suisun City Amtrak, Walnut Creek BART, Sacramento Valley Station, and the Fairfield Transit Center. These charging facilities will charge electric buses used by STA, but also be available to other transit agencies, including Napa Vine and Contra Costa County Connection. This project element will allow the sharing of electricity costs and seeking to reduce greenhouse gas emissions for all transit systems sharing the infrastructure.

Residents of priority populations will see immediate benefits with access to the regional transit centers that are being improved by this project. This will improve mobility and access to regional transit services.

Network integration funds were also awarded to provide real-time transit service coordination and passenger information for SolanoExpress customers, including integration of service schedule and frequency with other transit providers including WETA ferries, Amtrak Capitol Corridor trains, and BART, as well as the ability to hold SolanoExpress buses for up to

072 5 minutes for a late-arriving connection. Funding is also provided to develop plans for transitioning SolanoExpress to Bus Rapid Transit Lite by improving the frequency, in-haul line time and access to the service using techniques that include transit signal prioritization, adaptive ramp metering, implementation of managed lanes on freeways, improved bus stop shelters and branding. Full electrification will also be completed, identifying charging facilities and supportive infrastructure needed for the service.

Project completion is expected by 2023.

Key Project Ratings: Cost per GHG Ton Reduced: High Increased Ridership: Medium Service Integration: High Improves Safety: Medium-High Project Readiness: Medium Funding Leverage: Medium Multi-Agency Coordination/Integration: Medium-High Priority Population Benefits: Medium Housing Co-Benefits: High

15. Torrance Transit Department

Project: Torrance Transit Bus Service Enhancement Program

Award: $6,000,000 Total Budget: $7,200,000

Estimated TIRCP GHG Reductions: 30,000 MTCO2e

Purchase 7 zero-emission buses to expand and enhance services on four routes, including: (1) expansion of the only express route in Torrance Transit’s system connecting Torrance to Downtown Los Angeles; (2) extension of a local route which serves the LA Metro Green Line Crenshaw Station and provides future service to the Inglewood Stadium and Entertainment District; (3) extension of local route 9 to serve the new Kaiser Permanente South Bay Medical Center— one of the largest medical centers in the South Bay region; (4) acquire the western portion of LA Metro’s Route 130 between the Blue Line Artesia Station and the South Bay Galleria Mall.

The four routes, supported by the additional buses, provide critical connections to job centers

073 in the region and expands service to meet existing and future service demand. This project, and others in the region (City of Inglewood, Santa Monica Big Blue Bus), are part of a coordinated effort to develop public transportation services to the Inglewood Sports and Entertainment to alleviate the anticipated influx of traffic to the area. The extended and enhanced routes bolster the regional transit system and makes it more attractive to riders.

The project augments efforts by Torrance Transit to operate a fully zero-emission fleet by 2030—fully 10 years before the 2040 date set forth by the California Air Resources Board’s Innovative Clean Transit Rule. This award will provide customers in priority population communities with access to greater economic opportunities, LA Metro’s regional rail system, and healthcare facilities. The zero-emission buses being purchased helps to decrease health disparities and improve public health.

Project completion is expected by 2021.

Key Project Ratings: Cost per GHG Ton Reduced: High Increased Ridership: Medium-High Service Integration: Medium-High Improves Safety: Medium-High Project Readiness: High Funding Leverage: Medium-Low Multi-Agency Coordination/Integration: Medium-Low Priority Population Benefits: Medium-Low Housing Co-Benefits: Low

16. Transit Joint Powers Authority for Merced County

Project: Improving Air Quality and the Economic Growth with Electric Buses in Merced County, the Gateway to Yosemite

Award: $3,112,000 Total Budget: $3,696,513

074 Estimated TIRCP GHG Reductions: 31,000 MTCO2e (Additional project benefits accrue to the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Program, which is anticipated to contribute $585,000 to the project)

Purchases 3 zero-emission electric buses to increase fleet size and extend bus service levels on 2 fixed routes in Merced county. The proposed project allows for an expansion of service frequency on one existing inter-community fixed-route connecting rural communities, Planada and Le Grand, to the urban city of Merced. This route currently operates on limited frequency with only one bus in operation and is not sufficient to keep up with existing demand. The project also expands local service coverage on one local route to provide better bus service to a large developed residential area, with a sizeable population of students attending the University of Merced and Merced Community College, currently with limited access to the local service.

The whole of the service expansion for the two routes is located within priority population communities. Merced County is among the most economically disadvantaged in California and in a nonattainment region. Benefits of this project will create positive direct impacts to priority populations primarily increasing mobility and access to transit options, as well as reducing public health disparities.

Project completion is expected by 2022.

Key Project Ratings: Cost per GHG Ton Reduced: High Increased Ridership: Medium-High Service Integration: Medium Improves Safety: Medium Project Readiness: High Funding Leverage: Medium-Low Multi-Agency Coordination/Integration: Medium Priority Population Benefits: Medium-High Housing Co-Benefits: Medium

17. San Francisco Bay Area Water Emergency Transportation Authority (WETA)

Project: Expansion of WETA Ferry Service

Award: $9,060,000 Total Budget: $54,670,000

075

Estimated TIRCP GHG Reductions: 41,000 MTCO2e

Acquisition of a new all-electric vessels and related shoreside charging infrastructure to provide a critical 2.6-mile link between the Mission Bay and the Downtown San Francisco Ferry Terminal, on a regular 40-minute headway that is consistent with connections to other ferry routes. The new ferry route will open a Transbay transit option to other ferry terminals for Mission Bay residents, employees and visitors and relieve traffic congestion on surface streets and bridges.

The Mission Bay ferry service will increase ridership on existing ferry routes from Alameda, Oakland Vallejo, and Richmond, as well as future route expansions. Increasing options for water transit reduces vehicle congestion and uses an innovative, zero-emission ferry to provide that service.

Implementation of this project will link disadvantaged communities in the East Bay to the large employment center in Mission Bay which employs a diverse population of workers. Creating a connection to Mission Bay is regionally significant as it is a large employment center, which is host to two medical campuses and the new Chase Center. 1900 units of affordable housing for low-income residents are near the terminal for the new Mission Bay ferry service and will have improved accessibility to regional jobs through the ferry service expansion.

As part of the contracting process to build the Mission Bay ferry terminal, the Port of San Francisco requires a 30% mandatory participation level of project work hours with a goal of at least 15% of project work hours to be performed by residents of priority populations.

Project completion is expected by 2022.

Key Project Ratings: Cost per GHG Ton Reduced: Medium-High Increased Ridership: Medium-High Service Integration: Medium-High Improves Safety: High Project Readiness: High Funding Leverage: High Multi-Agency Coordination/Integration: Medium-High Priority Population Benefits: Medium Housing Co-Benefits: Medium

076

California State Transportation Agency

Transit and Intercity Rail Capital Program

Grant Recipient:

Agency Name

CalSTA Transit and Intercity Rail Capital Program Administered by:

California Department of Transportation Division of Rail and Mass Transportation 1120 N Street, Room 3300 P.O. Box 942874, MS-39 Sacramento, California 94274-0001

077 Agency Name Master Agreement No. 64XXXXXMA Program Supplement No. XXXXXXPS

TABLE OF CONTENTS

RECITALS ______4 ARTICLE I - DEFINITIONS ______5 ARTICLE II – TIRCP PROJECTS AND ADMINISTRATION ______7 Section 1. TIRCP Projects and Project Management ______7 Section 2. Program Supplement ______7 A. General ______7 B. Project Overrun ______9 C. Cost Savings and Project Completion ______9 D. Scope of Work ______9 E. Program Supplement Amendments ______10 Section 3. Allowable Costs and Payments ______10 A. Allowable Costs and Progress Payment Invoice ______10 B. Final Invoice ______10 ARTICLE III – GENERAL PROVISIONS ______11 Section 1. Funding ______11 Section 2. Audits and Reports ______11 A. Cost Principles ______11 B. Record Retention ______12 C. Reporting Requirements ______13 Section 3. Special Requirements ______14 A. California Transportation Commission Resolutions ______14 B. Recipient Resolution ______14 C. Termination ______15 D. Third Party Contracting ______16 E. Change in Funds and Terms/Amendments ______16 F. Project Ownership ______16 G. Disputes ______18 H. Hold Harmless and Indemnification ______19 I. Labor Code Compliance ______19 J. Non-Discrimination Clause ______19 K. State Fire Marshal Building Standards Code ______20 L. Americans with Disabilities Act ______21 M. Access for Persons with Disabilities ______21 N. Disabled Veterans Program Requirements ______21 O. Environmental Process ______21 P. Force Majeure ______22 ARTICLE IV – MISCELLANEOUS PROVISIONS ______22

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078 Agency Name Master Agreement No. 64XXXXXMA Program Supplement No. XXXXXXPS

Section 1. Miscellaneous Provisions ______22 A. Successor Acts ______22 B. Successor and Assigns to the Parties ______22 C. Notice ______22 D. Amendment ______23 E. Representation and Warranties of the Parties ______23 F. Construction, Number, Gender and Captions ______24 G. Complete Agreement ______25 H. Partial Invalidity ______25 I. Conflicts______25 J. Counterparts ______25 K. Governing Law ______25 Appendix A - TIRCP PROGRAM GUIDELINES AND DEPARTMENT DELEGATION ______27 Appendix B - RECIPIENT'S RESOLUTION ______28

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079 Agency Name Master Agreement No. 64XXXXXMA Program Supplement No. XXXXXXPS

STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION

Effective Date of this Agreement: Month Date, Year or upon final signature, whichever is later

Termination Date of this Agreement: Month Date, Year

Recipient: Agency Name

Application Funding: The Greenhouse Gas Reduction Fund and Senate Bill 1 Fund are the applicable funding source covered by this Agreement and will identified in each specific Program Supplement, adopting the terms of this Agreement.

RECITALS

1. WHEREAS, The Global Warming Solutions Act of 2006 (the “ACT”) (Assembly Bill [AB] 32, Nunez, Chapter 488) created a comprehensive program to reduce greenhouse gas emissions in California. AB 32 requires California to reduce greenhouse gases to 1990 levels by 2020, and to maintain and continue reductions beyond 2020. In March 2012, Governor Brown signed Executive Order B‐16‐2012 affirming a long‐range climate goal for California to reduce greenhouse gases from the transportation sector to 80 percent below 1990 levels by 2050.

2. WHEREAS, the Cap‐and‐Trade Program is a key element in California’s climate plan. It creates a limit on the emissions from sources responsible for 85 percent of California’s greenhouse gas emissions, establishes the price signal needed to drive long‐term investment in cleaner fuels and more efficient use of energy, and gives covered entities flexibility to implement the lowest‐cost options to reduce greenhouse gas emissions.

3. WHEREAS, in 2012, the Legislature passed and Governor Brown signed into law three bills, AB 1532 (Pérez, Chapter 807, Statutes of 2012), Senate Bill (SB) 535 (De León, Chapter 830, Statutes of 2012), and SB 1018 (Budget and Fiscal Review Committee, Chapter 39, Statutes of 2012), that established the Greenhouse Gas Reduction Fund (GGRF) to receive proceeds from the distribution of allowances via auction and provided the framework for how those auction proceeds will be appropriated and expended. These statutes require that expenditures from the GGRF be used to facilitate the achievement of greenhouse gas emission reductions and further the purposes of AB 32.

4. WHEREAS, in 2017, the Legislature passed and Governor Brown signed into law the Road Repair and Accountability Act of 2017 SB 1, which directed additional funding to the Transit and Intercity Rail Capital Program (TIRCP).

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080 Agency Name Master Agreement No. 64XXXXXMA Program Supplement No. XXXXXXPS

5. WHEREAS, TIRCP is one of several programs funded as part of the 2014-2015 State of California Budget (Senate Bill 852 and Senate Bill 862), and implemented pursuant to Public Resources Code section 75220 et seq and Health and Safety Code section 39719 et seq..

6. WHEREAS, as directed by the ACT, CalSTA established TIRCP Program Guidelines that describe the policy, standards, criteria, and procedures for the development, adoption and management of the TIRCP Program.

7. WHEREAS, Recipient has submitted an application, been evaluated and selected by CalSTA in accordance with the TIRCP Program Guidelines.

8. WHEREAS, on August 17, 2015, CalSTA delegated the administration of the TIRCP Program to the Department pursuant to the TIRCP Program Guidelines and the Department’s policies and procedures for the administration of similar grant programs.

9. NOW THEREFORE, in consideration of the recitals and the rights, duties and covenants set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree to the following:

10. This Agreement, entered into effective as of the date set forth above, is between the signatory public entity identified hereinabove, (hereinafter referred to as Recipient), and the STATE OF CALIFORNIA, acting by and through the California Department of Transportation (hereinafter referred to as DEPARTMENT), and subject to the approval of the California State Transportation Agency (CalSTA).

ARTICLE I - DEFINITIONS

The terms defined in this Article I shall for all purposes of this Agreement have the meanings specified herein.

1.1 “Act” refers to the Global Warming Solutions Act of 2006 (the “ACT”) (Assembly Bill [AB] 32, Nunez, Chapter 488) created a comprehensive program to reduce greenhouse gas emissions in California.

1.2 “Agreement” shall mean this Agreement, inclusive of all appendices and Program Supplements, whereby the Department, on behalf of CalSTA, and pursuant to the Act and as set forth herein, administers the TIRCP Program.

1.3 “Award Agreement” shall mean a project-specific subcontract to this agreement executed following Project award and may include Project specific information, expected outcomes, and deliverables.

1.4 “California Department of Transportation” or “Caltrans” or “Department” means the State of California, acting by and through its Department of Transportation of the State of the State of California, and any entity succeeding to the powers, authorities and responsibilities of the Department invoked by or under this Agreement or the Program Supplements.

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1.5 “California Transportation Commission” or “CTC” shall refer to the commission established in 1978 by Assembly Bill 402 (Chapter 1106, Statutes of 1977).

1.6 “Effective Date” means the date set forth on page 4 of this Agreement.

1.7 “Greenhouse Gas Reduction Funds” or “GGRF” shall mean the funds subject to Chapter 26, Statutes of 2014, authorizing the State to fund capital improvements and operational investments for California’s transit systems and intercity, commuter, and urban rail systems.

1.8 “Senate Bill 1” or “SB 1” shall mean the funds subject to Chapter 5, Statutes of 2017, authorizing the State to fund capital improvements and investments for California’s transit systems and intercity, commuter, and urban rail systems.

1.9 “Overall Funding Plan” has the meaning set forth in Article II, Section 2(A)(5)(c).

1.10 “Program Guidelines” shall mean the policy, standards, criteria, and procedures for the development, adoption and management of the TIRCP Projects established by CalSTA and provided in Appendix A.

1.11 “Program Supplement” shall mean a project-specific subcontract to this Agreement that is executed following a CTC approved action and includes all Project specific information needed to encumber funding and shall include expected outcomes and deliverables.

1.12 “Program Supplement Last Expenditure Date” and refers to the last date for Recipient to incur valid Project costs or credits.

1.13 “Program Supplement Termination” shall occur when the Recipient’s obligations have been fully performed as set forth in Article II, Section 2D and Article III, Section 3(C)(2) or when terminated by convenience as set forth in Article III, Section 3(C)(1).

1.14 “Project” shall mean the project identified in Recipient’s application.

1.15 “Project Closeout Report” shall have the meaning set forth in Article II, Section 3(B).

1.16 “Project Financial Plan” shall have the meaning set forth in Article II, Section 2(A)(5)(d).

1.17 “Progress Payment Invoice” shall have the meaning set forth in Article II, Section 3A.

1.18 “Project Schedule” has the meaning set forth in Article II, Section 2(A)(5)(b).

1.19 “Scope of Work” has the meaning set forth in Article II, Section 2(A)(5)(a).

1.20 “Secretary” shall mean the Secretary of the California State Transportation Agency (CalSTA). Unless the context otherwise requires, any reference to the Secretary includes CalSTA and its officers and employees.

1.21 “State” shall mean the State of California.

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1.22 “TIRCP Projects” shall mean projects that are selected and funded pursuant to the Transit and Intercity Rail Capital Program.

ARTICLE II – TIRCP PROJECTS AND ADMINISTRATION

Section 1. TIRCP Projects and Project Management

1. TIRCP Projects, pursuant to the Act, are established by CalSTA in accordance with the TIRCP Program Guidelines. Under delegation from CalSTA, the Department will administer the TIRCP Program in accordance with the TIRCP Program Guidelines and best management practices identified in the administration of similar Department grant programs.

2. By this reference, those Guidelines are made an express part of this Agreement and shall apply to each TIRCP Program funded Project. Recipient will cause its specific TIRCP mandated Resolution to be attached as part of any TIRCP funded Program Supplement as a condition precedent to the acceptance of GGRF or SB 1 Funds (upon availability and allocation), for such project.

3. All inquiries during the term of this Agreement and any applicable Program Supplement will be directed to the project representatives identified below: State’s Project Administrator: Recipient’s Project Administrator: Department of Transportation Agency Name Unit Manager Name Agency Contact Name Branch Chief [Or other Title], Title Branch Name (XXX) XXX-XXXX Phone: [Enter Phone #] Contact email Email: [[email protected]]

Section 2. Program Supplement

A. General

1. This Agreement shall have no force and effect with respect to the Project unless and until a separate Project specific program supplement hereinafter referred to as “Program Supplement,” adopting all of the terms and conditions of this Agreement has been fully executed by both State and Recipient.

2. Recipient agrees to complete the defined scope of work for the Project, described in the Program Supplement adopting all of the terms and conditions of this Agreement.

3. A financial commitment of actual funds will only occur in each detailed and separate Program Supplement. No funds are obligated by the prior execution of this Agreement alone.

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4. Recipient further agrees, as a condition to the release and payment of the funds encumbered for the scope of work described in each Program Supplement, to comply with the terms and conditions of this Agreement and all the agreed-upon special covenants and conditions attached to or made a part of the Program Supplement identifying and defining the nature of that specific scope of work.

5. The Program Supplement shall include a detailed scope of work, which shall include but not be limited to, a Project Description, a Project Schedule, an Overall Funding Plan, and a Project Financial Plan as required in the TIRCP Program Guidelines.

a. The Scope of Work shall include a detailed description of the Project and will itemize the major tasks and their estimated costs.

b. The Project Schedule shall include major tasks and/or milestones and their associated beginning and ending dates and duration.

c. The Overall Funding Plan shall itemize the various Project Components, the committed funding program(s) or source(s), and the matching funds to be provided by Recipient and/or other funding sources, if any [these Components include Environmental and Permits; Plans, Specifications and Estimates (PS&E); Right-of-Way (ROW); and Construction (including transit vehicle acquisition)].

d. The Project Financial Plan shall identify estimated expenditures for the Project Component by funding source, provided that for the purposes of this Agreement the State is only monitoring compliance for expenditures for the TIRCP, including but not limited to GGRF and SB 1 Funds allocated for the Project Component.

6. Adoption and execution of the Program Supplement by Recipient and State, incorporating the terms and conditions of this Agreement into the Program Supplement as though fully set forth therein, shall be sufficient to bind Recipient to these terms and conditions when performing the Project. Unless otherwise expressly delegated to a third-party in a resolution by Recipient’s governing body, which delegation must be expressly assented to and concurred in by State, the Program Supplement shall be managed by Recipient.

7. The estimated cost and scope of the Project will be as described in the applicable Program Supplement. The State shall not participate in any funding for the Project beyond those amounts actually encumbered by the STATE as evidenced in the applicable Program Supplement unless the appropriate steps are followed and approval is granted by the CTC as described below.

8. Upon the stated expiration date of this Agreement, any Program Supplement executed under this Agreement for the Project with obligations yet to be completed pursuant to the approved Project Schedule, deliverables, and reporting requirements shall be deemed to extend the term of this Agreement only to conform to the specific Project termination or completion date, including completion of deliverables and reporting requirements, contemplated by the

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applicable Program Supplement to allow that uncompleted Project to be administered under the extended terms and conditions of this Agreement.

B. Project Overrun

1. If Recipient or the State determine, at any time during the performance of the Project, that the Project budget may be exceeded, Recipient shall take the following steps:

a. Notify the designated State representative of the nature and projected extent of the overrun and, within a reasonable period thereafter, identify and quantify potential cost savings or other measures which Recipient will institute to bring the Project Budget into balance; and

b. Identify the source of additional Recipient or other third party funds that can be made available to complete Project. Recipient agrees that the allocation of the GGRF and SB 1 funds is subject to the allocation proposed by the CalSTA, submitted by the State, and approved by the CTC.

C. Cost Savings and Project Completion

1. Recipient is encouraged to evaluate design and construction alternatives that would mitigate the costs of delivering the commitments for the Project. Recipient shall take all steps necessary on a commercially reasonable basis that would generally be taken in accordance with best management practices. In determining cost savings, the Parties shall take into account all avoided costs, including avoided design, material, equipment, labor, construction, testing, acceptance and overhead costs and avoided costs due to time savings, and all the savings in financing costs associated with such avoided costs.

2. If there is an identification and implementation of any CalSTA approved alternative resulting in reduction of the Project costs, the parties agree that the recipient shall provide a prorated share of Project or TIRCP funded Project component cost savings based on the overall project match to the Department no later than 30 days after the submission of the final invoice. Subject to CalSTA’s approval, savings may be used towards another project component or towards increasing project benefits that are consistent with the original project award while maintaining the overall project match referenced in the project award and program supplements.

3. Program supplements will indicate the Project or Component proration of funding match.

4. The Recipient agrees to complete the Project and accepts sole responsibility for the payment of any cost increases. If either the Project or the funded components are not completed, the Recipient shall bear the burden of full TIRCP funds reimbursement to the Department.

D. Scope of Work

1. Recipient shall be responsible for complete performance of the work described in the approved Program Supplement for the Project related to the commitment of encumbered funds.

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All work shall be accomplished in accordance with the applicable provisions of the Act, Public Utilities Code, the Streets and Highways Code, the Government Code, and other applicable statutes and regulations.

2. Recipient acknowledges and agrees that Recipient is the sole control and manager of the Project and its subsequent employment, operation, repair and maintenance for the benefit of the public. Recipient shall be solely responsible for complying with the funding and use restrictions established by (a) the statutes from which the GGRF and SB1 Funds are derived, (b) the CTC, (c) the State Treasurer, (d) the Internal Revenue Service, (e) the applicable Program Supplement, and (f) this Agreement.

3. Recipient acknowledges and agrees that the Recipient is responsible for complying with all reporting requirements established by the TIRCP Guidelines and California Air Resource Board (CARB) Funding Guidelines.

E. Program Supplement Amendments

Program Supplement amendments will be required whenever there are CalSTA or CTC approved actions, including but not limited to, Financial Allocations, Financial Allocation Amendments, Time Extensions and Technical Corrections. These changes shall be mutually binding upon the Parties only following the execution of a Program Supplement amendment.

Section 3. Allowable Costs and Payments

A. Allowable Costs and Progress Payment Invoice

1. Not more frequently than once a month, Recipient will prepare and submit to State signed Progress Payment Invoice for actual Project costs incurred and paid for by Recipient consistent with the allocation and Scope of Work document in the Program Supplement and State shall pay those uncontested allowable costs once the invoice is reviewed and approved by the Department, subject to CalSTA’s approval. If no costs were incurred during any given quarter, Recipient is exempt from submitting a signed Progress Payment Invoice.

2. State shall not be required to reimburse more funds, cumulatively, per quarter of any fiscal year greater than the sums identified and included in the Project Financial Plan. The State shall hold the right to determine reimbursement availability based on an approved expenditure plan and TIRCP anticipated or actual funding capacity. Each such invoice will report the total of Project expenditures from GGRF and SB 1 Funds (including those of Recipient and third parties) and will specify the percent of State reimbursement requested and the GGRF and SB 1 Funds source.

B. Final Invoice

The Program Supplement Last Expenditure Dates(s) refer to the last date for Recipient to incur valid Project costs or credits. Recipient has one hundred and eighty (180) days after that Last Expenditure Date to make already incurred final allowable payments to Project contractors or

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vendors, prepare the Project Closeout Report, and submit the final invoice to State for reimbursement of allowable Project costs before those remaining State funds are unencumbered and those funds are reverted as no longer available to pay any Project costs. Recipient expressly waives any right to allowable reimbursements from State pursuant to this Agreement for costs incurred after that termination date and for costs invoiced to Recipient for payment after that one hundred and eightieth (180th) day following the Project Last Expenditure Date.

ARTICLE III – GENERAL PROVISIONS

Section 1. Funding

1. Recipient agrees to contribute at least the statutorily or other required local contribution of matching funds (other than State or federal funds), if any is specified within the Program Supplement or any appendices thereto, toward the actual cost of the Project or the amount, if any, specified in any executed SB 2800 (Streets and Highways Code Section 164.53) Agreement for local match fund credit, whichever is greater. Recipient shall contribute not less than its required match amount toward the Project cost in accordance with a schedule of payments as shown in the Project Financial Plan prepared by Recipient and approved by State as part of a Program Supplement.

Section 2. Audits and Reports

A. Cost Principles

1. Recipient agrees to comply with Title 2 Code of Federal Regulations 200 (2 CFR 200) Uniform Administrative Requirements, Cost Principles for State and Local Government, and Audit Requirements for Federal Awards.

2. Recipient agrees, and will assure that its contractors and subcontractors will be obligated to agree to follow 2 CFR 200 and it shall be used to determine the allowability of individual Project cost items. Every sub-recipient receiving Project funds as a contractor or sub-contractor under this Agreement shall comply with 2 CFR 200.

3. Any Project costs for which Recipient has received payment or credit that are determined by subsequent audit to be unallowable under 2 CFR 200, are subject to repayment by Recipient to State. Should Recipient fail to reimburse moneys due State within thirty (30) days of demand, or within such other period as may be agreed in writing between the Parties hereto, State is authorized to intercept and withhold future payments due to Recipient from State or any third- party source whose funding passes through the State, including but not limited to, the State Treasurer, the State Controller and the CTC.

4. The State may terminate the grant for any reason at any time if it is determined by the State, based on an audit under this section, that there has been a violation of any State or federal law or policy by the Recipient during performance under this or any other grant agreement or

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contract entered into with the State. If the grant is terminated under this section, the Recipient may be required to fully or partially repay funds.

B. Record Retention

1. Recipient agrees, and will assure that its contractors and subcontractors shall establish and maintain an accounting system and records that properly accumulate and segregate incurred Project costs and matching funds by line item for the Project. The accounting system of Recipient, its contractors and all subcontractors shall conform to Generally Accepted Accounting Principles (GAAP), enable the determination of incurred costs at interim points of completion, and provide support for reimbursement payment vouchers or invoices. All accounting records and other supporting papers of Recipient, its contractors and subcontractors connected with Project performance under this Agreement and each Program Supplement shall be maintained for a minimum of three (3) years from the date of final payment to Recipient under a Program Supplement and shall be held open to inspection, copying, and audit by representatives of State, the California State Auditor, and auditors representing the federal government. Copies thereof will be furnished by Recipient, its contractors, and subcontractors upon receipt of any request made by State or its agents. In conducting an audit of the costs and match credits claimed under this Agreement, State will rely to the maximum extent possible on any prior audit of Recipient pursuant to the provisions of federal and State law. In the absence of such an audit, any acceptable audit work performed by Recipient’s external and internal auditors may be relied upon and used by State when planning and conducting additional audits.

2. For the purpose of determining compliance with Title 21, California Code of Regulations, Section 2500 et seq., when applicable, and other matters connected with the performance of Recipient’s contracts with third parties pursuant to Government Code section 8546.7, Recipient, Recipient’s contractors and subcontractors, and State shall each maintain and make available for inspection all books, documents, papers, accounting records, and other evidence pertaining to the performance of such contracts, including, but not limited to, the costs of administering those various contracts. All of the above referenced parties shall make such Agreement and Program Supplement materials available at their respective offices at all reasonable times during the entire Project period and for three (3) years from the date of final payment to Recipient under any Program Supplement. State, the California State Auditor, or any duly authorized representative of State or the United States Department of Transportation, shall each have access to any books, records, and documents that are pertinent to the Project for audits, examinations, excerpts, and transactions, and Recipient shall furnish copies thereof if requested.

3. Recipient, its contractors and subcontractors will permit access to all records of employment, employment advertisements, employment application forms, and other pertinent data and records by the State Fair Employment Practices and Housing Commission, or any other agency of the State of California designated by State, for the purpose of any investigation to ascertain compliance with this Agreement and the Act.

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C. Reporting Requirements

1. Reporting requirements of Recipient will include whether reported implementation activities are within the scope of the Project Program Supplement and in compliance with State laws, regulations, and administrative requirements.

2. TIRCP Progress Reporting shall be no more frequently than monthly and no less frequently than quarterly at the discretion of the State and shall generally include the following information;board

a. Activities and progress made towards implementation of the project during the reporting period and activities anticipated to take place in the next reporting period;

b. Identification of whether the Project is proceeding on schedule and within budget;

c. Identification of whether the Project Deliverables are proceeding on schedule.

d. Identification of changes to the Project funding plan, milestone schedule, or deliverables completion date;

e. Any actual or anticipated problems which could lead to delays in schedule, increased costs or other difficulties for either the Project or other State funded projects impacted by the Project’s scope of work and the efforts or activities being undertaken to minimize impacts to schedule, cost, or deliverables;

3. CARB Reporting shall be no more frequently than monthly and no less frequently than semi-annually at the discretion of CARB and shall include the following information (subject to modification by CARB);

a. Identify metrics and benefits achieved for disadvantaged communities, low income communities, and/or low-income households;

b. continued reporting following project implementation to identify benefits achieved.

c. Any and all other requirements instituted by CARB.

4. Within one year of the Project or reportable Project components becoming operable, the implementing agency must provide a final delivery report including at a minimum:

a. Scope of completed Project as compared to Programmed Project;

b. Performance outcomes derived from the project as compared to outcomes described in the Project application and shall include but not be limited to before and after measurements and estimates for ridership, service levels, greenhouse gas reductions, updated estimated greenhouse gas reductions over the life of the project, benefits to disadvantaged

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communities, low income communities, and/or low income households, and project co-benefits as well as an explanation of the methodology used to quantify the benefits.

c. Before and after photos documenting the project

d. The final costs as compared to the approved project budget by component and fund type, and an estimate of the TIRCP funds spent to benefit disadvantaged communities, low- income communities, and/or low-income households, and

e. The project duration as compared to the project schedule in the project application.

Section 3. Special Requirements

A. California Transportation Commission Resolutions

1. Recipient shall adhere to applicable CTC policies on “Timely Use of Funds” as stated in Resolution G-06-04, adopted April 26, 2006, addressing the expenditure and reimbursement of GGRF and SB 1 Funds. These resolutions, and/or successor resolutions in place at the time a Program Supplement is executed, shall be applicable to GGRF and SB 1 funds, respectively.

2. Recipient shall be bound to the terms and conditions of this Agreement, the Project application contained in the Program Supplement (as applicable); and CTC Resolutions G-06-04, G-09-11 and/or their respective successors in place at the time the Program Supplement is signed (as applicable) and all restrictions, rights, duties and obligations established therein on behalf of State and CTC shall accrue to the benefit of the CTC and shall thereafter be subject to any necessary enforcement action by CTC or State. All terms and conditions stated in the aforesaid CTC Resolutions and CTC-approved Guidelines in place at the time the Program Supplement is signed (if applicable) shall also be considered to be binding provisions of this Agreement.

3. Recipient shall conform to any and all permit and mitigation duties associated with Project as well as all environmental obligations established in CTC Resolution G-91-2 and/or its successors in place at the time a Program Supplement is signed, as applicable, at the expense of Recipient and/or the responsible party and without any further financial contributions or obligations on the part of State unless a separate Program Supplement expressly provides funding for the specific purpose of hazardous materials remediation.

B. Recipient Resolution

1. Recipient has executed this Agreement pursuant to the authorizing Recipient resolution, attached as Appendix B to this Agreement, which empowers Recipient to enter into this Agreement and which may also empower Recipient to enter into all subsequent Program Supplements adopting the provisions of this Agreement.

2. If Recipient or State determines that a separate Resolution is needed for each Program Supplement, Recipient will provide information as to who the authorized designee is to act on

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behalf of the Recipient to bind Recipient with regard to the terms and conditions of any said Program Supplement or amendment and will provide a copy of that additional Resolution to State with the Program Supplement or any amendment to that document.

C. Termination

1. Termination Convenience by State

a. State reserves the right to terminate funding for any Program Supplement, subject to CalSTA approval, upon written notice to Recipient in the event that Recipient fails to proceed with Project work in accordance with the Program Supplement, or otherwise violates the conditions of this Agreement and/or the Program Supplement or the funding allocation such that substantial performance is significantly endangered.

b. No such termination shall become effective if, within thirty (30) days after receipt of a notice of termination, Recipient either cures the default involved or, if not reasonably susceptible of cure within said thirty (30)-day period, Recipient proceeds thereafter to complete the cure in a manner and time line acceptable to State. Any such termination shall be accomplished by delivery to Recipient of a notice of termination, which notice shall become effective not less than thirty (30) days after receipt, specifying the reason for the termination, the extent to which funding of work under this Agreement is terminated and the date upon which such termination becomes effective, if beyond thirty (30) days after receipt. During the period before the effective termination date, Recipient and State shall meet to attempt to resolve any dispute.

c. Following a fund encumbrance made pursuant to a Program Supplement, if Recipient fails to expend GGRF or SB 1 monies within the time allowed specified in the Program Supplement, those funds may revert, and be deemed withdrawn and will no longer be available to reimburse Project work unless those funds are specifically made available beyond the end of that Fiscal Year through re-appropriation or other equivalent action of the Legislature and written notice of that action is provided to Recipient by State.

d. In the event State terminates a Program Supplement for convenience and not for a default on the part of Recipient as is contemplated in this section, Recipient shall be reimbursed its authorized costs up to State’s proportionate and maximum share of allowable Project costs incurred to the date of Recipient’s receipt of that notice of termination, including any unavoidable costs reasonably and necessarily incurred up to and following that termination date by Recipient to effect such termination following receipt of that termination notice.

2. Termination After Recipient’s Obligations Fully Performed

Following project completion, and all obligations as defined in the TIRCP Guidelines, CARB Guidelines, and Program Supplement are fully performed, including Project completion of all deliverables and reporting, the Program Supplement shall be terminated. If the Project

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obligations are not fully performed, as defined under this section, the Recipient may be required to fully or partially repay funds.

D. Third Party Contracting

1. Recipient shall not award a construction contract over $10,000 or other contracts over $25,000 [excluding professional service contracts of the type which are required to be procured in accordance with Government Code Sections 4525 (d), (e) and (f)] on the basis of a noncompetitive negotiation for work to be performed under this Agreement without the prior written approval of State. Contracts awarded by Recipient, if intended as local match credit, must meet the requirements set forth in this Agreement regarding local match funds.

2. Any subcontract entered into by Recipient as a result of this Agreement shall contain the provisions of ARTICLE III – GENERAL PROVISIONS, Section 2. Audits and Reports and shall mandate that travel and per diem reimbursements and third-party contract reimbursements to subcontractors will be allowable as Project costs only after those costs are incurred and paid for by the subcontractors.

3. In addition to the above, the preaward requirements of third-party contractor/consultants with local transit agencies should be consistent with Local Program Procedures (LPP-00-05).

E. Change in Funds and Terms/Amendments

This Agreement and the resultant Program Supplements may be modified, altered, or revised only with the joint written consent of Recipient and State.

F. Project Ownership

1. Unless expressly provided to the contrary in a Program Supplement, subject to the terms and provisions of this Agreement, Recipient, or a designated subrecipient acceptable to State, as applicable, shall be the sole owner of all improvements and property included in the Project constructed, installed or acquired by Recipient or subrecipient with funding provided to Recipient under this Agreement. Recipient, or subrecipient, as applicable, is obligated to continue operation and maintenance of the physical aspects of the Project dedicated to the public transportation purposes for which Project was initially approved unless Recipient, or subrecipient, as applicable, ceases ownership of such Project property; ceases to utilize the Project property for the intended public transportation purposes; or sells or transfers title to or control over Project and State is refunded the Credits due State as provided in paragraph (2) herein below.

2. Project right-of-way, Project facilities constructed or reconstructed on the Project site and/or Project property (including vehicles and vessels) purchased by Recipient (excluding temporary construction easements and excess property whose proportionate resale proceeds are distributed pursuant to this Agreement) shall remain permanently dedicated to the described

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public transit use in the same proportion and scope, and to the same extent as mandated in the Program Supplement, unless State agrees otherwise in writing. Vehicles acquired as part of Project, including, but not limited to, buses, vans, rail passenger equipment, shall be dedicated to that public transportation use for their full economic life cycle, which, for the purpose of this Agreement, will be determined in accordance with standard national transit practices and applicable rules and guidelines, including any extensions of that life cycle achievable by reconstruction, rehabilitation or enhancements. The exceptions to this section are outlined below:

a. Except as otherwise set forth in this Section, State, or any other State-assignee public body acting on behalf of the CTC, shall be entitled to a refund or credit (collectively the Credit), at State’s sole option, equivalent to the proportionate Project funding participation received by Recipient from State if Recipient, or a sub-recipient, as applicable, (i) ceases to utilize Project for the original intended public transportation purposes or (ii) sells or transfers title to or control over Project. If federal funds (meaning only those federal funds received directly by Recipient and not federal funds derived through or from the State) have contributed to the Project, Recipient shall notify both State and the original federal source of those funds of the disposition of the Project assets or the intended use of those sale or transfer receipts.

b. State shall also be entitled to an acquisition credit for any future purchase or condemnation of all or portions of Project by State or a designated representative or agent of State.

c. The Credit due State will be determined by the ratio of State’s funding when measured against the Recipient’s funding participation (the Ratio). For purposes of this Section, the State’s funding participation includes federal funds derived through or from State. That Ratio is to be applied to the then present fair market value of Project property acquired or constructed as provided in (d) and (e) below.

d. For Mass Transit vehicles, this Credit [to be deducted from the then remaining equipment value] shall be equivalent to the percentage of the full extendable vehicle economic life cycle remaining, multiplied by the Ratio of funds provided for that equipment acquisition. For real property, this same funding Ratio shall be applied to the then present fair market value, as determined by State, of the Project property acquired or improved under this Agreement.

e. Such Credit due State as a refund shall not be required if Recipient dedicates the proceeds of such sale or transfer exclusively to a new or replacement State approved public transit purpose, which replacement facility or vehicles will then also be subject to the identical use restrictions for that new public purpose and the Credit ratio due State should that replacement project or those replacement vehicles cease to be used for that intended described pre-approved public transit purpose.

i. In determining the present fair market value of property for purposes of calculating State’s Credit under this Agreement, any real property portions of the Project site contributed by Recipient shall not be included. In determining State’s proportionate funding

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ii. Once State has received the Credit as provided for above because Recipient, or a sub-recipient, as applicable, has (a) ceased to utilize the Project for the described intended public transportation purpose(s) for which State funding was provided and State has not consented to that cessation of services or (b) sold or transferred title to or control over Project to another party (absent State approval for the continued transit operation of the Project by that successor party under an assignment of Recipient’s duties and obligations), neither Recipient, subrecipient, nor any party to whom Recipient or subrecipient, as applicable, has transferred said title or control shall have any further obligation under this Agreement to continue operation of Project and/or Project facilities for those described public transportation purposes, but may then use Project and/or any of its facilities for any lawful purpose.

iii. To the extent that Recipient operates and maintains Intermodal Transfer Stations as any integral part of Project, Recipient shall maintain each station and all its appurtenances, including, but not limited to, restroom facilities, in good condition and repair in accordance with high standards of cleanliness (Public Utilities Code section 99317.8). Upon request of State, Recipient shall also authorize State-funded bus services to use those stations and appurtenances without any charge to State or the bus operator. This permitted use will include the placement of signs and informational material designed to alert the public to the availability of the State-funded bus service (for the purpose of this paragraph, "State-funded bus service" means any bus service funded pursuant to Public Utilities Code section 99316).

G. Disputes

Parties shall develop a mutually agreed upon issue resolution process, as described below, and issues between the Parties are to be resolved in a timely manner. The Parties agree to the following:

1. If the Parties are unable to reach agreement on any particular issue relating to either Parties’ obligations pursuant to this Agreement, the Parties agree to promptly follow the issue resolution process as outlined below:

a. The Department’s project manager and the Recipient’s equivalent may initiate the process of informal dispute resolution by providing the other Party with written notice of a dispute. The written notice shall provide a clear statement of the dispute, and shall refer to the specific provisions of this Agreement or Program Supplement that pertain to the dispute. The Department’s project manager and the Recipient’s equivalent shall meet and attempt to resolve the dispute within five days from the written notice. If the dispute is resolved, the Parties shall create and sign a short description of the facts and the resolution that was agreed upon by the Parties.

b. If the dispute is not resolved by the fifth day from the written notice, the Department’s senior project manager and the Recipient’s equivalent shall meet and review the

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dispute within five days. The Department’s senior project manager and the Recipient’s equivalent manager shall attempt to resolve the dispute within ten days of their initial meeting. If the dispute is resolved, the Parties shall create and sign a short description of the facts and the resolution that was agreed upon by the Parties.

c. If the dispute is not resolved by the tenth day, the Department’s Director or his designee and the Recipient’s equivalent manager shall meet and review the dispute within five days. The Department’s Director or his designee and the Recipient’s equivalent manager shall attempt to resolve the dispute within ten days of the initial meeting. If the dispute is resolved, the Parties shall create and sign a short description of the facts and the resolution that was agreed upon by the Parties. If the dispute is not resolved by the tenth day by the Department’s Director or his designee and the Recipient’s equivalent manager, the Parties shall submit the matter to the Secretary of CalSTA for a final administrative determination.

H. Hold Harmless and Indemnification

1. Neither State nor any officer or employee thereof shall be responsible for any damage or liability occurring by reason of anything done or omitted to be done by Recipient, its agents and contractors under or in connection with any work, authority, or jurisdiction delegated to Recipient under this Agreement or any Program Supplement or as respects environmental cleanup obligations or duties of Recipient relative to Project. It is also understood and agreed that, Recipient shall fully defend, indemnify and hold the CTC and State and their officers and employees harmless from any liability imposed for injury and damages or environmental obligations or duties arising or created by reason of anything done or imposed by operation of law or assumed by, or omitted to be done by Recipient under or in connection with any work, authority, or jurisdiction delegated to Recipient under this Agreement and all Program Supplements.

2. Recipient shall indemnify, defend and hold harmless State, the CTC and the State Treasurer relative to any misuse by Recipient of State funds, Project property, Project generated income or other fiscal acts or omissions of Recipient.

I. Labor Code Compliance

Recipient shall include in all subcontracts awarded using Project funds, when applicable, a clause that requires each subcontractor to comply with California Labor Code requirements that all workers employed on public works aspects of any project (as defined in California Labor Code §§ 1720-1815) be paid not less than the general prevailing wage rates predetermined by the Department of Industrial Relations as effective the date of Contract award by the Recipient.

J. Non-Discrimination Clause

1. In the performance of work under this Agreement, Recipient, its contractor(s) and all subcontractors, shall not unlawfully discriminate, harass or allow harassment against any employee or applicant for employment because of sex, race, color, ancestry, religious creed,

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national origin, physical disability, mental disability, medical condition, age, marital status, family and medical care leave, pregnancy leave, and disability leave. Recipient, its contractor(s) and all subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. Recipient, its contractor(s) and all subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code section 12900 et seq.), and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, section 7285 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code section 12990 (a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations, are incorporated into this Agreement by reference and made a part hereof as if set forth in full. Each of Recipient’s contractors and all subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreements, as appropriate.

2. Each of the Recipient’s contractors, subcontractors, and/or subrecipients shall give written notice of their obligations under this clause to labor organizations with which they have collective bargaining or other labor agreements. The Recipient shall include the nondiscrimination and compliance provisions hereof in all contracts and subcontracts to perform work under this Agreement.

3. Should federal funds be constituted as part of Project funding or compensation received by Recipient under a separate Contract during the performance of this Agreement, Recipient shall comply with this Agreement and with all federal mandated contract provisions as set forth in that applicable federal funding agreement.

4. Recipient shall include the non-discrimination and compliance provisions of this clause in all contracts and subcontracts to perform work under this Agreement.

5. The Recipient shall comply with the nondiscrimination program requirements of Title VI of the Civil Rights Act of 1964. Accordingly, 49 CFR 21 (Nondiscrimination in Federally-Assisted Programs of The Department Of Transportation—Effectuation of Title VI of The Civil Rights Act of 1964) and 23 CFR Part 200 (Title VI Program and Related Statutes—Implementation and Review Procedures) are made applicable to this Agreement by this reference. Wherever the term “Contractor” appears therein, it shall mean the Recipient.

6. The Recipient shall permit, and shall require that its contractors, subcontractors, and subrecipients will permit, access to all records of employment, employment advertisements, application forms, and other pertinent data and records by the State Fair Employment Practices and Housing Commission or any other agency of the State of California designated by Department to investigate compliance with this Section J.

K. State Fire Marshal Building Standards Code

The State Fire Marshal adopts building standards for fire safety and panic prevention. Such regulations pertain to fire protection design and construction, means of egress and adequacy of

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exits, installation of fire alarms, and fire extinguishment systems for any State-owned or State- occupied buildings per section 13108 of the Health and Safety Code. When applicable, Recipient shall request that the State Fire Marshal review Project PS&E to ensure Project consistency with State fire protection standards.

L. Americans with Disabilities Act

By signing this Master Agreement, Recipient assures State that Recipient shall comply with the Americans with Disabilities Act (ADA) of 1990, which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA (42 U.S.C. 12101 et seq.).

M. Access for Persons with Disabilities

Disabled access review by the Department of General Services (Division of the State Architect) is required for all publicly funded construction of buildings, structures, sidewalks, curbs and related facilities. Recipient will award no construction contract unless Recipient’s plans and specifications for such facilities conform to the provisions of sections 4450 and 4454 of the California Government Code, if applicable. Further requirements and guidance are provided in Title 24 of the California Code of Regulations.

N. Disabled Veterans Program Requirements

1. Should Military and Veterans Code sections 999 et seq. be applicable to Recipient, Recipient will meet, or make good faith efforts to meet, the 3% Disabled Veterans Business Enterprises goals (or Recipient’s applicable higher goals) in the award of every contract for Project work to be performed under these this Agreement.

2. Recipient shall have the sole duty and authority under this Agreement and each Program Supplement to determine whether these referenced code sections are applicable to Recipient and, if so, whether good faith efforts asserted by those contractors of Recipient were sufficient as outlined in Military and Veterans Code sections 999 et seq.

O. Environmental Process

Completion of the Project environmental process (“clearance”) by Recipient (and/or State if it affects a State facility within the meaning of the applicable statutes) is required prior to requesting Project funds for right-of-way purchase or construction. No State agency may request funds nor shall any State agency, board or commission authorize expenditures of funds for any Project effort, except for feasibility or planning studies, which may have a significant effect on the environment unless such a request is accompanied with all appropriate documentation of compliance with or exemption from the California Environmental Quality Act (CEQA) (including, if as appropriate, an environmental impact report, negative declaration, or notice of exemption) under California Public Resources Code section 21080(b) (10), (11), and (12) provides an

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exemption for a passenger rail project that institutes or increases passenger or commuter services on rail or highway rights-of-way already in use.

P. Force Majeure

Each party will be excused from performance of its obligations where such non-performance is caused by any event beyond its reasonable control, such as any non-appealable order, rule or regulation of any federal or state governmental body, Acts of God (including fire, flood, earthquake, storm, hurricane or other natural disaster), war, invasion, act of foreign enemies, hostilities (regardless of whether war is declared), civil war, rebellion, revolution, insurrection, military or usurped power or confiscation, terrorist activities, nationalization, government sanction, blockage, embargo, labor dispute, strike, lockout or interruption, provided that the party excused hereunder shall use all reasonable efforts to minimize its non-performance and to overcome, remedy or remove such event in the shortest practical time.

Should a force majeure event occur which renders it impossible for a period of forty-five (45) or more consecutive days for either party to perform its obligations hereunder, the Parties agree to negotiate in good faith to amend the existing Master Agreement or Supplemental Agreement to deal with such event and to seek additional sources of funding to continue the operation of the Service.

ARTICLE IV – MISCELLANEOUS PROVISIONS

Section 1. Miscellaneous Provisions

A. Successor Acts

All statutes cited herein shall be deemed to include amendments to and successor statutes to the cited statues as they presently exist.

B. Successor and Assigns to the Parties

Neither this Agreement nor any right, duty or obligation hereunder may be assigned, transferred, hypothecated or pledged by any party without the express written consent of the other party; provided, that unless otherwise expressly required herein, a party shall not be obligated to obtain the written consent of the other party with respect to any contract related to the Service for the provision of goods and/or services to the contracting party in the ordinary course of business.

C. Notice

Any notice which may be required under this Agreement shall be in writing, shall be effective when received, and shall be given by personal service, or by certified or registered mail, return receipt requested, to the addresses set forth below, or to such other addresses as may be specified in writing and given to the other party in accordance herewith.

If given to the Department:

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State of California Department of Transportation Division of Rail and Mass Transportation P.O. Box 942874 Sacramento, CA 994274-0001 Attention: Division of Rail and Mass Transit TIRCP Contract Manager, Mail Stop 39

with a copy to: California State Transportation Agency 915 Capitol Mall Suite 350 B Sacramento, CA 95814

If given to the Recipient: Agency Name Address. City, XXXXX-XXXX Attention: Contact Name

D. Amendment

This Agreement may not be changed, modified, or amended except in writing, signed by the parties hereto, and approved in advance in writing by the Secretary, and any attempt at oral modification of this Agreement shall be void and of no effect.

E. Representation and Warranties of the Parties

1. Recipient hereby represents and warrants to the Department that:

a. Recipient is in good standing under applicable law, with all requisite power and authority to carry on the activities for which it has been organized and proposed to be conducted pursuant to this Agreement.

b. Recipient has the requisite power and authority to execute and deliver this Agreement and to carry out its obligations hereunder. The execution and delivery of this Agreement by such entity, the performance by it of its obligations thereunder and the consummation of the transactions contemplated thereby have been duly authorized by the governing board of such entity and no other proceedings are necessary to authorize this Agreement or to consummate the transactions contemplated thereby. The Agreements have

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been duly and validly executed and delivered by such entity and constitute valid and binding obligations of such entity, enforceable against it in accordance with their terms, except to the extent that such enforceability may be subject to bankruptcy, insolvency, reorganization, moratorium or other laws now or hereinafter in effect relating to the creditor’s rights and the remedy of specific enforcement and injunctive and other forms of equitable relief, and may be subject to equitable defenses and to the discretion of the court before which any proceeding therefore may be brought.

c. Neither the execution and delivery of this Agreement and the performance of its obligations thereunder nor the consummation of the transactions contemplated thereby will (i) conflict with or result in a breach of any provision of any agreement to which Recipient is a party; (ii) violate any write, order, judgment, injunction, decrees, statute, rule or regulation of any court or governmental authority applicable to such entity or its property or assets.

2. The Department does hereby represent and warrant with respect to each provision of this Agreement to the Recipient that:

a. It validly exists with all requisite power and authority to carry on the activities proposed to be conducted pursuant to this Agreement.

b. It has the requisite power and authority to execute and deliver this Agreement and to carry out its obligations thereunder. The execution and delivery of this Agreement, the performance by it of its obligations thereunder and the consummation of the transactions contemplated thereby have been duly authorized and no other proceedings are necessary to authorize this Agreement or to consummate the transactions contemplated thereby. The agreements have been duly and validly executed and delivered by it and constitute valid and binding obligations, enforceable against it in accordance with their terms, except to the extent that such enforceability may be subject to bankruptcy, insolvency, reorganization, moratorium or other laws now or hereinafter in effect relating to creditor’s rights and other forms of equitable relief, and may be subject to equitable defenses and to the discretion of the court before which any proceeding therefore may be brought.

c. Neither the execution and delivery of this Agreement and the performance of its obligations thereunder nor the consummation of the transactions contemplated thereby will (i) conflict with or result in a breach of any provision of any agreement to which the Recipient is a party; (ii) violate any writ, order, judgment, injunction, decree, statute, rule or regulation of any court or governmental authority applicable to such entity or its property or assets.

F. Construction, Number, Gender and Captions

The Agreements have been executed in the State of California and shall be construed according to the law of said State. Numbers and gender as used therein shall be construed to include that number and/or gender which is appropriate in the context of the text in which either is included. Captions are included therein for the purposes of ease of reading and identification. Neither

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100 Agency Name Master Agreement No. 64XXXXXMA Program Supplement No. XXXXXXPS gender, number nor captions used therein shall be construed to alter the plain meaning of the text in which any or all of them appear.

G. Complete Agreement

This Agreement, including Appendices, constitutes the full and complete agreement of the parties, superseding and incorporating all prior oral and written agreements relating to the subject matter of this Agreement. All attached Appendices A and B are hereby incorporated and made an integral part of this Agreement by this reference.

H. Partial Invalidity

If any part of this Agreement is determined to be invalid, illegal or unenforceable, such determination shall not affect the validity, legality or enforceability of any other part of this Agreement and the remaining parts of this Agreement shall be enforced as if such invalid, illegal or unenforceable part were not contained herein.

I. Conflicts

To the extent that any provision of or requirement of this Agreement may conflict with a provision or requirement of any other agreement between the parties hereto, or between a party hereto and any other party, which is attached to this Agreement as an appendix, the priority of agreements shall be employed to resolve such conflict. In the event of a conflict, the Master Agreement controls the Program Supplement and any further Amendments.

J. Counterparts

This Agreement may be executed in one or more counterparts and may include multiple signature pages, all of which shall be deemed to be one instrument. Copies of this Agreement may be used in lieu of the original.

K. Governing Law

The Agreement shall be governed by and construed in accordance with the laws of the State of California.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their duly authorized officers.

[SIGNATURES TO FOLLOW]

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STATE OF CALIFORNIA AGENCY NAME DEPARTMENT OF TRANSPORTATION

BY: BY: NAME NAME Kyle Gradinger Title Division of Rail and Mass Transportation

DATE: DATE:

APPROVED AS TO FORM AND PROCEDURE

STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION

BY: Deputy Attorney

DATE:

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APPENDIX A TIRCP PROGRAM GUIDELINES AND DEPARTMENT DELEGATION

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APPENDIX B RECIPIENT’S RESOLUTION (INSERT AGENCY BOARD RESOLUTION)

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104 ITEM 9

105 The Public Transportation Services of the Transit Joint Powers Authority for Merced County 369 W. 18th Street .. Merced, CA 95340 .. (209) 723-3100 .. (209) 723-0322 fax .. mercedthebus.com

ITEM 9 MEMORANDUM

DATE: August 14, 2020

TO: Transit Joint Powers Authority for Merced County

FROM: Christine Chavez, Transit Manager

RE: ACTION: Authorization for Operating Assistance grant application submittal for the Coronavirus Aid, Relief, and Economic Security (CARES) Act for Federal Transit Administration Section 5311 program phase 2 for Federal Fiscal Year 2020

SUMMARY

The Coronavirus Aid, Relief, and Economic Security (CARES) Act for Federal Transit Administration (FTA) Section 5311 Program Phase 2 fund apportionment by Caltrans – Division of Rail and Mass Transportation (Caltrans-DRMT) for Merced County for FFY 2020 is $1,143,934.

A Governing Board resolution is required to authorize:

• The filing of the FFY 2020 CARES Act for FTA-5311 Program Phase 2 Rural Transit Operating Grant application to Caltrans- DRMT; and

• The Transit Joint Powers Authority for Merced County (TJPAMC) Executive Director or designee to sign and execute documents related to the grant application as well as executing Caltrans-DRMT Standard Agreement contract and the required request for reimbursement.

REQUESTED ACTION

BACKGROUND

On July 17, 2020, the Division of Rail and Mass Transportaiton (DRMT) announced the Call for Projects for the Coronavirus Aid, Relief, and Economic Security (CARES) Act for Federal Transit Administration (FTA) Section 5311 Program Phase 2. The CARES Act is intended to provide support for capital, operating, and other expenses generally eligible under the FTA Section 5311 program to prevent, prepare for, and respond to COVID-19. This includes operating expenses to maintain transit services as well as paying for administrative leave for transit personnel due to reduced operations during an emergency. The regional apportionment is based on the 2010 decennial census and represents the remaining Phase 2 CARES Act funding for regular FTA 5311 Program. The Call for CARES Act Projects is only for the regular FTA 5311 funding. FTA 5311(f) Rural Intercity Bus Program will be announced at a later date.

106 MCAG, as the Metropolitan Planning Organization (MPO) for Merced County, received the estimated apportionment notification for the Merced County region, and TJPAMC, the public transportation agency for Merced County, submits a project request for the funding, and MCAG submits the FTA 5311 Program of Projects to Caltrans-DRMT for the region’s apportionment. Caltrans-DRMT receives the Program of Projects and processes the recipients applications and then sends grant recipients a Caltrans Standard Agreement (SA) back to the grantee for their signature. Grant recipients return the signed SA document to Caltrans. Caltrans then processes (signs) the SA and the contract is fully executed. Once the SA is fully executed, grant recipients are required to submit a Request for Reimbursement (RFR) document for incurred rural transit operating costs.

CARES Act funding under FTA 5311 can be used to: support operations, maintenance, COVID related expenses, etc. In general, operating expenses are those costs necessary to operate, maintain, and manage a public transportation system. CARES Act projects are 100% federally funded and requires no local share. The FTA 5311 formula program allocated $1,143,934 to Merced County. TJPAMC intends to use these funds to support operations in Merced County.

TJPAMC staff is preparing an application on behalf of TJPAMC for submittal to Caltrans – Division of Rail and Mass Transportation (DRMT) for the Federal Transit Administration Section 5311 CARES Act Program Phase 2. Staff is seeking approval by Resolution for the 5311 Program CARES Act funds and Program of Projects (POP) with Transit Joint Powers Authority for Merced County as the subrecipient in the amount $1,143,934 and authorize the TJPAMC Executive Director or designee to sign and execute documents related to the grant application as well as executing Caltrans-DRMT Standard Agreement and the required request for reimbursement.

PAST ACTION TAKEN

April 7, 2020: Transit Joint Powers Authority for Merced County was allocated $592,355 for CARES Act Funding for 5311 Program Phase 1 (round 1).

FISCAL IMPACT

FY 2020/21 revenue for TJPAMC Rural Operations in the amount of $1,143,934.

The Technical Review Board concurs with the requested action.

REQUESTED ACTION

ATTACHMENTS

Resolution 2020/08-20-05 FTA CARES Act funds for Distribution in Route 2 5311 Program CARES Act Fact Sheet

107

RESOLUTION NO. 2020/08-20-05

RESOLUTION AUTHORIZING THE FEDERAL FUNDING UNDER FTA SECTION 5311 (49 U.S.C. SECTION 5311) WITH CALIFORNIA DEPARTMENT OF TRANSPORTATION

WHEREAS, the U. S. Department of Transportation is authorized to make grants to states through the Federal Transit Administration to support capital/operating assistance projects for non- urbanized public transportation systems under Section 5311 of the Federal Transit Act (FTA C 9040.1G); and

WHEREAS, the California Department of Transportation (Department) has been designated by the Governor of the State of California to administer Section 5311 grants for transportation projects for the general public for the rural transit and intercity bus; and

WHEREAS, Transit Joint Powers Authority (TJPAMC) desires to apply for said financial assistance to permit operation of service in Merced County; and

WHEREAS, the Transit Joint Powers Authority has, to the maximum extent feasible, coordinated with other transportation providers and users in the region (including social service agencies).

NOW, THEREFORE, BE IT RESOLVED AND ORDERED that the Transit Joint Powers Authority for Merced County Governing Board does hereby Authorize the Executive Director or a designee, to file and execute applications on behalf of with the Department to aid in the financing of capital/operating assistance projects pursuant to Section 5311 of the Federal Transit Act (FTA C 9040.1G), as amended.

That Tranist Joint Powers Authority for Merced County, Executive Director or a designee is authorized to execute and file all certification of assurances, contracts or agreements or any other document required by the Department.

That Tranist Joint Powers Authority for Merced County, Executive Director or a designee is authorized to provide additional information as the Department may require in connection with the application for the Section 5311 projects.

That Tranist Joint Powers Authority for Merced County, Executive Director or a designee is authorized to submit and approve request for reimbursement of funds from the Department for the Section 5311 project(s).

PASSED AND ADOPTED by the Board of the Transit Joint Powers Authority for Merced County, State of California, at a regular meeting of said Commission or Board Meeting held on this 20th day of August, 2020 by the following vote:

AYES:

NOES:

108 ABSENT:

ATTEST: AGENCY BOARD DESIGNEE:

______Stacie Guzman, Executive Director Paul Creighton, Chairperson Transit Joint Powers Authority for Transit Joint Powers Authority for Merced Merced County County Governing Board

Date: ______

109 FTA CARES Act Funds for Distribution in Round 2 (Final Round) Division of Rail and Mass Transportation Office of Transit Grants and Contracts Amounts determined using 5311 Regional Formula Calculations

D County/Region CARES Formula 4 MTC $ 3,453,334 (1) 3 SACOG $ 1,630,029 (2) 10 Alpine $ 118,908 10 Amador $ 463,371 3 Butte $ 1,481,971 10 Calaveras $ 554,450 3 Colusa $ 260,559 1 Del Norte $ 348,036 3 El Dorado $ 1,081,553 6 Fresno $ 3,355,334 3 Glenn $ 342,100 1 Humboldt $ 1,637,669 11 Imperial $ 800,995 9 Inyo $ 225,609 6 Kern $ 3,178,250 6 Kings $ 791,214 1 Lake $ 786,640 2 Lassen $ 424,493 7 Los Angeles $ 911,817 6 Madera $ 881,368 10 Mariposa $ 222,021 1 Mendocino $ 1,068,573 10 Merced $ 1,143,934 2 Modoc $ 151,063 9 Mono $ 172,765 5 Monterey $ 1,325,495 3 Nevada $ 1,201,450 12 Orange $ - 3 Placer $ 1,013,089 2 Plumas $ 243,382 8 Riverside $ 2,031,019 5 San Benito $ 672,339 8 San Bernardino $ 2,955,913 11 San Diego $ 1,587,112 10 San Joaquin $ 910,393 5 San Luis Obispo $ 1,134,604 5 Santa Barbara $ 562,722 5 Santa Cruz $ 384,276 2 Shasta $ 723,711 3 Sierra $ 139,040 2 Siskiyou $ 546,202 10 Stanislaus $ 987,360 2 Tehama $ 772,018 2 Trinity $ 167,705 6 Tulare $ 1,854,568 10 Tuolumne $ 673,507 7 Ventura $ 858,206

(1) Metropolitan Transportation Commission (MTC): Sonoma, Napa, Solano, Contra Costa, Alameda, Marin, San Francisco, San Mateo and Santa Clara Counties (2) Sacramento Area Council of Governments (SACOG): Yuba, Sutter, Yolo and Sacramento Counties

Date Prepared: July 10, 2020 Data Source: CARES Act FFY 2020 Apportionment Table 3; 2010 Census Data workbook Prepared by: Tracy Harrison, Grants Management Branch

110 5311 Program CARES Act Fact Sheet

Congress passed the Coronavirus Aid, Relief and Economic Security Act (CARES Act) to provide support for capital, operating, and other expenses generally eligible under the FTA Section 5311 program to prevent, prepare for, and respond to COVID-19. This including operating expenses to maintain transit services as well as paying for administrative leave for transit personnel due to reduced operations during an emergency.

What: The overall goal of the FTA 5311 program is to enhance the availability of public transit in rural areas and provide public transportation opportunities to residents in rural areas for access to employment, education and health care, shopping and recreation.

Program Funds: Program funds are made available to rural areas with a population of less than 50,000 as designated by the Bureau of the Census (2010).

Eligible Applicants: Public transit providers, state and local governments, rural transportation planning agencies, private-nonprofit organizations, Tribal Governments and private intercity bus operators (5311(f)). All subrecipients are required to be compliant with FTA regulations.

Eligible Projects: Eligible projects include capital projects, planning and operating assistance projects. CARES Act projects are 100% federally funded and requires no local share.

Program Fund Role Players: The FTA, local government, transit providers, MPO’s RTPAs, DRMT, Districts, SCO, and Accounting.

Funding Amount and Distribution Process: The CARES Act apportionment for California is $94,976,667. Of this amount, 75% is set aside for regional distribution. Of the remaining 25%, 15% is set-aside for Intercity Bus Section 5311(f) and 10% for program administration. DRMT distributed Phase 1 to current subrecipients of FTA 5311 and 5311(f). Phase 2 is being distributed through a Call for Projects for ALL eligible transit operators. FTA 5311(f) Phase 2 will be determined later.

The Transportation Planning Agencies (RPA) Project Selection for CARES Act: Caltrans provides the formula-based funding amount for each region to the MPOs/RTPAs. They then plan and sub-allocate projects based on regional transportation needs. Once the projects are selected the transit agencies will submit their application to Caltrans using BlackCat Electronic Grants System.

References: CARES Act FQA’s https://www.transit.dot.gov/frequently-asked-questions-fta-grantees- regarding-coronavirus-disease-2019-covid-19 FTA Circular 9040.1.G https://www.transit.dot.gov/regulations-and-guidance/fta-circulars/formula- grants-rural-areas-program-guidance-and-application

111 ITEM 11a

112 ITEM 11a 369 W. 18th Street Merced, CA 95340 (209)723-3153 www.mcagov.org

august 2020 COVID-19 INFORMATION AND UPDATE: HOUSEHOLD HAZARDOUS WASTE The Merced County Department of Public Health is COLLECTION EVENT HELD AT RWA closely following the guidance of the Centers for Disease Control and Prevention and California Department of Public Health on the novel (new) virus that is causing an outbreak of pneumonia illness. Coronavirus is a type of virus that causes diseases of varying severities, ranging from the common cold to more serious respiratory disease. For more information, including the latest updates please visit: www.countyofmerced.com/ coronavirus

MCAG SEEKING APPLICATIONS FOR COMMITTEE APPOINTMENTS MCAG is seeking applicants for appointment to the Citizens Advisory Committee (CAC). The CAC is a Last month, the Merced County Regional Waste 17-member committee comprised of individuals Management Authority (RWA) hosted a Household from both the private sector and the community, Hazardous Waste (HHW) collection event for who provide input regarding MCAG programs and Merced County residents and Conditionally-Exempt advise the MCAG Governing Board on monthly Small Quantity Generators at the Highway 59 landfill agenda items. Meetings are held the first Friday of in Merced. every month at 8:30 am and are currently being Household Hazardous Waste is any leftover held via Zoom. The Committee members arehousehold product that contains ingredients that appointed by the MCAG Governing Board to serve a are: corrosive, toxic, flammable or reactive. four-year term based on the geographic location of Residents are encouraged to bring leftover HHW their home or business or their professional products to these free events to avoid background. Current vacancies include contaminating the water, land and air. HHW representatives in products should never be poured into any curbside the following containers, down the drain, or on the ground. So far areas: this year, the Highway 59 HHW facility has diverted • Education nearly 24,000 lbs. of paint from the landfill. • Student The next HHW collection event for Merced County residents will take place on Saturday, September 19, • Citizen at-large 2020 at the Los Banos Fairgrounds, 403 F Street in Applications for Los Banos. However, most HHW items are accepted the CAC can be everyday at both the landfills during regular hours. obtained at For more information about Household Hazardous www.mcagov.org or via email at [email protected]. Waste please visit: For more information, please contact Joy Young via www.mcrwma.org/31/Household-Hazardous-Waste email at [email protected] or 209-723-3153 or call RWA at (209) 723-4481 ext. 224 x 101.

113 MCAG AUGUST MEETINGS OPEN SEATS FOR MEASURE V CITIZENS 08/07 CAC Meeting, 8:30 am OVERSIGHT COMMITTEE REPRESENTATIVE 08/12 Technical Review Board meeting, 12:00 pm MCAG is currently accepting applications for 08/20 Governing Board meeting, 3:00 pm representatives from a Major Private Sector Employer, Building Industry and Ethnic Community Please note: All MCAG meetings will be held via Group to sit on the Measure V Citizens Oversight video/audio conference until further notice. The Committee. The Citizens Oversight Committee (COC) call-in number and passcode will be located on the was created as a result of the passage of Measure V cover of each agenda. To access the agendas for the in 2016. Its main function is to review the local, meetings listed, please visit: half-cent transportation tax expenditures to ensure www.mcagov.org/agendacenter they conform to the Measure V Expenditure Plan approved by Merced County voters. Committee For more information about these meetings, please members are appointed by the MCAG Governing contact Eva Garibay at: [email protected] Board to serve two-year terms. Each COC member may serve up to eight years, if reappointed. The COC meets quarterly at the MCAG office in Merced; all meetings are open to the public, governed by the Brown Act and currently being scheduled to be held via zoom. Committee members are volunteers and receive no compensation. Additional information about the COC and the application packet are available on the Measure V website: www.mcagov.org/MeasureV or via email at [email protected].

YARTS now running on Summer service schedules With the re-opening of Yosemite National Park in June, YARTS transitioned to its summer schedule for Merced, Mariposa, Sonora, Fresno and Highway 59 Landfill Billy Wright Landfill 7040 N. Highway 59 17173 S Billy Wright Road Mammoth Lakes. Merced, CA 95348 Los Banos, CA 95348 In addition to increased sanitation measures, all passengers are required to wear face masks when Phone: 209-723-4481 Phone: 209-826-1163 riding YARTS and are offered access to hand sanitizer while on board. Also, in order to promote Monday - Saturday Monday - Saturday: social distancing, capacity on all buses is reduced to 7:00 am - 3:30 pm 7:00 am - 3:30 pm a maximum of 30 passengers each. With most seats For more information about Regional Waste available to those with reservations, there is very Authority please visit: www.mcrwma.org limited space to accommodate walk-on passengers. Therefore, reservations are highly encouraged. STAY CONNECTED WITH US! There is also no additional charge to get into To receive text and/or email notifications from MCAG Yosemite beyond the YARTS fare and passengers do related to public meetings, traffic alerts, RFP releases, not have to have a day-use permit issued by the job opportunities, and more, visit www.mcagov.org National Park Service to ride. and click on the “Notify Me” icon. You can also follow For more information about YARTS, the seasonal us on Twitter, Facebook, schedules, or to make a reservation please visit Instagram, LinkedIn and YouTube! www.yarts.com or call (877) 989-2787.

114 August 2020—Update Measure V, Merced County’s ½ cent transportation sales tax, was HAVE YOU SPOTTED passed by Merced County voters with 71% approval in November MEASURE V AT WORK 2016. In an effort to keep the community informed about this IN MERCED COUNTY? transformative 30 year measure, MCAG will feature monthly updates in this newsletter. You can also visit www.mcagov.org/ Snap a picture and send it to measureV for the latest! [email protected] Since the inception of Measure V, local jurisdictions have been busy or tag us on Facebook, making progress on various Measure V projects around the County. Instagram and Twitter In July, the City of Atwater held a ribbon cutting for their Winton @mcag_merced Way Improvement project. The project, which included pavement reconstruction, rehabilitation to the road, sidewalk installation, or use the hashtag replacement of curb ramps, and driveways to meet ADA #MeasureV_mcag requirements on Winton Way from Broadway avenue to Bellevue road is Atwater’s first Measure V regional project. In addition, the traffic signal at Winton Way and Juniper Avenue was also retrofitted with detector loops. Other upgrades include the future installation of a synchronized traffic signal at Winton Way and Olive Avenue, pedestrian-activated flashing beacons, and crosswalk signage relocation at Fay Drive. The Winton Way project was made possible through various funding sources which were combined with an estimate $46,765 of Atwater’s local Measure V funds and $2,660,000 of east side Regional Project Measure V funds that were programmed in the 2019 Measure V Implementation Plan.

Contact: Mary-Michal Rawling, MPA, Public Affairs Manager (209) 723-3153 x 119 or [email protected]

115 ITEM 11b

116 ITEM 11b

Important Dates: August 2020 – December 2020 (Technical Review Board and Governing Board meeting dates and locations are subject to change)

August • 8/7 Citizens Advisory Committee meeting, (remote meeting via teleconference/webinar) • 8/12 Technical Review Board meeting, (remote meeting via teleconference/webinar) • 8/20 MCAG Governing Board meeting, (remote meeting via teleconference/webinar) September • 9/4 Citizens Advisory Committee meeting, (remote meeting via teleconference/webinar) • 9/7 HOLIDAY - MCAG Office Closed • 9/9 Technical Review Board meeting, (remote meeting via teleconference/webinar) • 9/17 MCAG Governing Board meeting, (remote meeting via teleconference/webinar) • 9/21 Measure V Citizens Oversight Committee meeting, (remote meeting via teleconference/webinar) October • 10/2 Citizens Advisory Committee meeting, (remote meeting via teleconference/webinar) • 10/14 Technical Review Board meeting, (remote meeting via teleconference/webinar) • 10/15 MCAG Governing Board meeting, (remote meeting via teleconference/webinar) November • 11/6 Citizens Advisory Committee meeting, (remote meeting via teleconference/webinar) • 11/11 HOLIDAY - MCAG Office Closed • 11/18 Technical Review Board meeting, (remote meeting via teleconference/webinar) • 11/19 MCAG Governing Board meeting, (remote meeting via teleconference/webinar) • 11/26 HOLIDAY - MCAG Office Closed • 11/27 HOLIDAY - MCAG Office Closed December • 12/4 Citizens Advisory Committee meeting, (remote meeting via teleconference/webinar) • 12/9 Technical Review Board meeting, (remote meeting via teleconference/webinar) • 12/17 MCAG Governing Board meeting, (remote meeting via teleconference/webinar) • 12/24 HOLIDAY - MCAG Office Closed • 12/25 HOLIDAY - MCAG Office Closed • 12/31 HOLIDAY - MCAG Office Closed

117 ITEM 11c

118

Merced County Association of Governments

2020

Governing Board Meeting Schedule

The 3rd Thursday of each month (except where noted in red) 3:00 p.m.

Date Location

January 16 City of Merced – Council Chambers

February 20 County of Merced - Administration Building

March 19 Meeting held via Teleconference, MCAG

April 16 Meeting held via teleconference/webinar

May 21 Meeting held via teleconference/webinar

June 18 Meeting held via teleconference/webinar

July 16 Meeting held via teleconference/webinar

August 20 Meeting held via teleconference/webinar

September 17 Meeting held via teleconference/webinar

October 15 Meeting held via teleconference/webinar

November 19 Meeting held via teleconference/webinar

December 17 Meeting held via teleconference/webinar

Partnering for Regional Solutions 119 ITEM 11d

120 ITEM 11d

Technical Review Board MINUTES

DATE Wednesday, August 12, 2020

The regular meeting of the Technical Review Board was held via teleconference/webinar and was called to order by Chair Stephanie Dietz at 12:07 p.m.

MEMBERS PRESENT Jim Brown, County Executive Officer of County of Merced (left at 1:27 p.m.) Marci Barrera for Jim Brown, County Executive Officer of County of Merced (arrived at 1:27) Stephanie Dietz, Interim City Manager of Merced, Chair Doug Dunford, City Manager of Gustine Darrell Fonseca, City Manager of Dos Palos Alex Terrazas, City Manager of Los Banos Lori Waterman, City Manager of Atwater

MEMBERS ABSENT Jose Antonio Ramirez, City Manager of Livingston (departed at 12:54 p.m.)

STAFF PRESENT Nav Bagri, Finance Director Christine Chavez, Transit Director Matt Fell, Deputy Director - Planning Stacie Guzman, Executive Director Alicia Ochoa-Jones, Purchasing and Contracts Manager Kyle Loreto, Diversion Program Manager Adam Perez, Multimedia Specialist Ty Phimmasone, Associate Planner Kate Molthen, Assistant Transportation Manager Mary-Michal Rawling, Public Affairs Manager Joy Young, Administrative Assistant II Eric Zetz, RWA Director

OTHERS PRESENT Wayne Padilla, HDL Companies Stephan Qualls, League of California Cities Colin Wallace, Republic Services

121 1. Introductions

Stephanie Dietz led the introductions and asked that roll call be taken. It was determined that a quorum was present.

2. Public Comment

No public comments were received.

3. COVID-19 update

Stacie Guzman gave the COVID-19 update and discussed the following topics: • Front office construction is nearing completion and we are waiting on the ballistic glass/door to be installed. • Transit o Press release sent out regarding reduced transit service regarding fixed route services going to a Sunday schedule on August 17, 2020. o Reduced schedule is partly due to a driver shortage due to COVID-19 related issues. o Free fares on fixed-route buses with reimbursement coming from Cares Act funding • Regional Waste Authority o Both landfills are operating and have been providing service as usual during COVID-19 with no changes other than increased residential drop off. o Jurisdictional clean up events have either been canceled or rescheduled. • MCAG o Staff working remotely and only limited staff in office. o Schools starting and flexibility being offered for those affected by changes due to COVID- 19.

4 Minutes of the July 8, 2020 Technical Review Board meeting

Lori Waterman moved to approve the minutes of the July 8, 2020 Technical Review Board meeting. Seconded by Alex Terrazas. Roll call vote: AYES: Jim Brown, Stephanie Dietz, Doug Dunford, Alex Terrazas, Lori Waterman NOES: None MOTION CARRIED UNANIMOUSLY.

TRANSIT JOINT POWERS AUTHORITY FOR MERCED COUNTY

5. Transit Joint Powers Authority for Merced County Monthly Update

Christine Chavez presented the Transit Joint Powers Authority for Merced County monthly update and discussed the following topics: a. July 2020 ridership report showed an overall decrease, free fares on routes at this time b. Operations and Maintenance update: • Modification to fixed route schedule of service • Delays in shipping of parts for off-site vehicle repairs/aging fleet • Operator shortages due to COVID-19 c. CARES Act funding update that a 5311 allocation was received which will help with COVID-19 related costs. d. Transit administration building project is moving forward with engineering and design plans. 122

6. Transit Joint Powers Authority for Merced County Board-approved contract status

So noted.

7. Approve project submittal for the State of Good Repair program for Fiscal Year 2020-21

Christine Chavez summarized the request to approve the project submittal for the State of Good Repair program for Fiscal Year 2020-21.

Lori Waterman moved to recommend the Transit Joint Powers Authority for Merced County: a. Adopt Resolution No. 2020/08-20-02 authorizing the filing of the FY 2020-21 SGR project; and b. Authorize the Transit Joint Powers Authority Executive Director to sign and execute the related documents as well as executing Caltrans-DRMT standard agreement contract. Seconded by Doug Dunford. Roll call vote: AYES: Jim Brown, Stephanie Dietz, Doug Dunford, Alex Terrazas, Lori Waterman NOES: None MOTION CARRIED UNANIMOUSLY.

8. Approve project allocation for submittal to Caltrans – Division of Rail and Mass Transportation (DRMT) for Transit and Intercity Rail Capital Program FY 2020

Christine Chavez summarized the request for approval of the project allocation for submittal to Caltrans – Division of Rail and Mass Transportation for Transit and Intercity Rail Capital Program FY 2020.

Lori Waterman moved to recommend the Transit Joint Powers Authority for Merced County adopt Resolution No. 2020/08-20-03 authorizing the project allocation submittal for the acquisition of three (3) 35’ – 40’ zero-emission electric buses and depot chargers, and authorizing the Transit Joint Powers Authority Executive Director to sign and execute documents related to the grant program as well as executing Caltrans-DRMT standard agreement contract. Seconded by Alex Terrazas. Roll call vote: AYES: Jim Brown, Stephanie Dietz, Doug Dunford, Alex Terrazas, Lori Waterman NOES: None MOTION CARRIED UNANIMOUSLY.

MERCED COUNTY ASSOCIATION OF GOVERNMENTS

9. Information/discussion only

a. MCAG Newsletter – August 2020 b. Calendar of Meetings, Conferences and Events c. Technical Review Board meeting schedule 2020 d. Minutes of the July 16 2020 MCAG Governing Board meeting e. Dibs Annual Report f. Merced County Association of Governments Board-approved contracts status

So noted.

123

10. Consent agenda

a. Adopt Federal Transportation Improvement Program Amendment 20 b. Approve the Measure V Funding Agreement for the Center Avenue North Project, City of Dos Palos Jim Brown moved to approve the consent agenda. Seconded by Alex Terrazas. Roll call vote: AYES: Jim Brown, Stephanie Dietz, Doug Dunford, Alex Terrazas, Lori Waterman NOES: None MOTION CARRIED UNANIMOUSLY.

11. Transportation Planning and Measure V Updates

Matt Fell gave the transportation planning and Measure V update and discussed the following topics: • Westside Commuter Bus Study is underway and is showing a lot less traffic during COVID-19 as compared to last year • Transit planning underway • Short Range Transit Plan • Unmet Transit Needs • Estimate a 25% reduction in transportation project funding • Cares Act funding will help with gap in reduced funding elsewhere • Anticipate a revenue reduction in Measure V funding as a result of general economic impacts

12. Measure V Implementation Plan status report

Matt Fell summarized the Measure V Implementation Plan status report and stated that funding for existing and programmed commitments on the Westside can be met and that the next Implementation Plan is due by next Fall.

13. Approve use of Federal Planning carryover funding to update YARTS Short Range Transit Plan

Matt Fell summarized the request for approval to use Federal Planning carryover funding to update the YARTS Short Range Transit Plan.

Alex Terrazas moved to recommend the MCAG Governing Board approve the use of up to $100,000 of Federal Planning carryover funding to update the YARTS Short Range Transit Plan. Seconded by Darrell Fonseca. Roll call vote: AYES: Jim Brown, Stephanie Dietz, Doug Dunford, Darrell Fonseca, Alex Terrazas, Lori Waterman NOES: None MOTION CARRIED UNANIMOUSLY.

124

14. Approve delegation of authority to the Executive Director to enter into Congestion Mitigation Air Quality (CMAQ) exchange agreements

Ty Phimmasone summarized the request for approval of the delegation of authority to the Executive Director to enter into Congestion Mitigation Air Quality (CMAQ) exchange agreements so that future opportunities for an exchange will not be missed.

Darrell Fonseca moved to recommend the MCAG Governing Board delegate authority to the Executive Director to enter into CMAQ exchange agreements. Seconded by Doug Dunford. Roll call vote: AYES: Jim Brown, Stephanie Dietz, Doug Dunford, Darrell Fonseca, Alex Terrazas, Lori Waterman NOES: None MOTION CARRIED UNANIMOUSLY.

15. Authorize contract for Internet Services provider

Nav Bagri summarized the request for authorization to enter into contract for Internet Services provider.

Lori Waterman moved to recommend the MCAG Governing Board authorize the Executive Director to enter into a three-year base contract, with two one-year extension options, for an internet service provider in an amount not to exceed $42,000. Seconded by Doug Dunford. Roll call vote: AYES: Marci Barrera, Stephanie Dietz, Doug Dunford, Darrell Fonseca, Alex Terrazas, Lori Waterman NOES: None MOTION CARRIED UNANIMOUSLY.

MERCED COUNTY REGIONAL WASTE MANAGEMENT AUTHORITY

16. Merced County Regional Waste Management Authority Monthly Update

Eric Zetz gave an update for the Merced County Regional Waste Management Authority and discussed the following topics: a. Tonnage reports for July – July 2019 significant decline in tonnage and June 2020 significant increase. b. Highway 59 Household Hazardous event was held on July 18th with over 100 vehicles attending. c. HF&H/SB 1383 jurisdiction meetings will be held in August to discuss impacts and develop an implementation plan. d. Landfill Gas to Energy project phase 1 to be completed by November 2020. e. Highway 59 East Expansion will need an Environmental Review and an amendment to the Environmental Impact Review. f. Electronic Annual Report (EAR) due date is August 1, 2020.

125 17. Authorize contract for delivery of gasoline and diesel

Kyle Loreto summarized the request for authorization to contract for delivery of gasoline and diesel at both landfills.

Darrell Fonseca moved to recommend the Merced County Regional Waste Management Authority Board authorize the Executive Director to enter into a contract for the delivery of gasoline and diesel at both landfills for three (3) years, with three (3) one (1) year options, in the amount not to exceed $180,000. Seconded by Lori Waterman. Roll call vote: AYES: Marci Barrera, Stephanie Dietz, Doug Dunford, Darrell Fonseca, Alex Terrazas, Lori Waterman NOES: None MOTION CARRIED UNANIMOUSLY.

18. Authorize contract with Ascent Environmental to prepare environmental documents for Highway 59 Landfill Expansion project

Eric Zetz summarized the request for authorization to contract with Ascent Environmental to prepare environmental documents for Highway 59 Landfill Expansion project.

Alex Terrazas move to recommend the Merced County Regional Waste Management Authority Board authorize the Executive Director to enter into a contract with Ascent Environmental to prepare environmental amendment documents for the Highway 59 landfill east buffer expansion project in the amount not to exceed $95,000. Seconded by Darrell Fonseca. Roll call vote: AYES: Marci Barrera, Stephanie Dietz, Doug Dunford, Darrell Fonseca, Alex Terrazas, Lori Waterman NOES: None MOTION CARRIED UNANIMOUSLY.

19. Authorize Flow Control Policy

Eric Zetz summarized the request to authorize a Flow Control Policy to relax the flow control requirement for diverted material (recycling and plant material green) for all jurisdictions.

Lori Waterman moved to recommend the Merced County Regional Waste Management Authority Board direct staff to draft a policy to relax the flow control requirement for diverted material (recycling and plant material green) for all jurisdictions to be brought back to the board for discussion and adoption at a future meeting. Seconded by Alex Terrazas. Roll call vote: AYES: Marci Barrera, Stephanie Dietz, Doug Dunford, Darrell Fonseca, Alex Terrazas, Lori Waterman NOES: None MOTION CARRIED UNANIMOUSLY.

20. Authorize extension of contract for transportation and processing of recyclable materials

After a lengthy discussion, Stacie Guzman ask that Item 20 be pulled from the agenda and no action taken at this time. The Technical Review Board agreed by consensus to remove Item 20 from the agenda.

126 21. Merced County Regional Waste Management Authority Board-approved contracts status

So noted.

OTHER REPORTS

22. Caltrans report

No report was given.

23. Oral report – League of California Cities update

Stephen Qualls gave the League of California Cities update on current legislative issues.

24. Oral report - Jurisdictions

So noted.

25. Executive Director’s report

The Executive Director report was provided under the COVID-19 update item.

THERE BEING NO FURTHER BUSINESS, THE MEETING WAS ADJOURNED AT 2:48 p.m.

127 ITEM 11e

128 dibs Annual Report

Background dibs is the Transportation Demand Management (TDM) program for the Merced County Association of Governments (MCAG) and has served in this role since 1987. The goal of the dibs program is to improve air quality and reduce traffic congestion by promoting Smart Travel alternatives to driving alone. dibs works in close partnership with the jurisdictions and public agencies of Merced, San Joaquin, and Stanislaus Counties to make an impact across the region. Services include:

Trip Vanpol Marketing, Employer & Transit and Planning/ Formation/ Promotions Community Park and Ride Ridematching Subsidies and Events Outreach

This report will provide a preview of the presentation to be conducted to the committees and Governing Board in August. The report and presentation represent activities from fiscal years 2018-19 and 2019- 2020 designed in a “Star Wars” theme and highlights the Return of the Dibs, and the continuing pursuit of reducing Co2 and congestion. Impact

129

Merced Total Rebel Victories

151 5 19 tons crew members added vanpool ships of emissions were to their fleet added to the fleet for taken from the air activated for a total a total of 13 star of 719

Employer Outreach

dibs works closely with jurisdictions and employers to educate employees on the benefits and resources available for smart travel. Over 15 meetings and events were conducted to introduce the program and educate employees through worksite or community events.

The County of Merced travelled across planets and gained more soldiers through presentations and events

130 Events

Each year dibs works with jurisdictions and employers to coordinate events to encourage the use of smart travel. Bike month occurs each May and includes community events across all three counties. Rideshare Week was also reintroduced in 2019. Take

The galaxy gained more freedom through the efforts of the Merced County and dibs rebel forces. To join the light side visit dibsmyway.com!

131 ITEM 12a

132

PH: 209.723.3153 FAX: 209.723.0322 www.mcagov.org 369 W. 18th Street Merced, CA 95340

ITEM 12a MEMORANDUM

DATE: August 14, 2020

TO: MCAG Governing Board

FROM: Ty Phimmasone, Associate Planner

RE: ACTION: Adopt Federal Transportation Improvement Program Amendment 20

SUMMARY

Federal Transportation Improvement Program (FTIP) Amendment 20 would program the mitigations in Fiscal Year 2020/21 for the completed Plainsburg-Arboleda Freeway.

REQUESTED ACTION

Adopt Formal Amendment 20 to the 2019 Federal Transportation Improvement Program.

BACKGROUND

2019 Federal Transportation Improvement Program (FTIP)

MCAG adopted the Final 2019 FTIP on August 16, 2018. The 2019 Federal Statewide Transportation Improvement Program (FSTIP), which incorporated MCAG’s 2019 FTIP, was officially approved by the Federal agencies on December 17, 2018.

Projects and programs, which are federally funded, must be programmed in the FTIP in order to have access to these funds. Any updates or changes to these federally-funded projects/programs for 2019 FTIP Federal Fiscal Years (FFY’s: 2018/19 – 2021/22) must be “amended” into the FTIP.

PAST ACTIONS TAKEN

None.

State Highway Project Mitigations

Following the construction of a major highway project, it is very common for mitigations such as planting of trees and shrubs. This planting mitigation provides aesthetic, safety, environmental, storm water pollution prevention, and erosion control benefits. This project includes mitigation planting at existing fenced Arboleda basin in Merced County near Merced on State Route 99 and at the intersection of Arboleda Drive and Le Grand Road.

133 This project also includes fastening silhouette images of extinct Columbian mammoths to fences at two bridge fences on State Route 99 at the Plainsburg Road and the Le Grand Road overcrossings. During the excavation of soils for the freeway project, fossils were uncovered, which were donated to the U. C. Merced School of Natural Sciences based on the significance and educational benefit of the discovery. Because the discovery is uniquely associated with a public transportation project, additional effort is warranted to emphasize the positive and educational impact a construction project can have.

If you have any questions regarding this staff report, please contact Ty Phimmasone at 723.3153 x 123 or [email protected].

FISCAL IMPACT

Program $1,478,000 of Proposition 1B State Route 99 Bond funding for mitigation project.

The Citizens Advisory Committee and the Technical Review Board concur with the requested action.

REQUESTED ACTION

Adopt Formal Amendment 20 to the 2019 Federal Transportation Improvement Program.

ATTACHMENTS

Draft Resolution No. 2020/08-20-01

134

BEFORE THE MERCED COUNTY ASSOCIATION OF GOVERNMENTS RESOLUTION NO. 2020/08-20-01

In the Matter of: RESOLUTION ADOPTING the Merced County Association of Governments 2019 Federal Transportation Improvement Program (FTIP) Amendment 20

WHEREAS, the Merced County Association of Governments (MCAG) is a Regional Transportation Planning Agency and a Metropolitan Planning Organization, pursuant to State and Federal designation; and

WHEREAS, federal planning regulations require Metropolitan Planning Organizations to prepare and adopt a long range Regional Transportation Plan (RTP) for their region; and

WHEREAS, federal planning regulations require that Metropolitan Planning Organizations prepare and adopt a Federal Transportation Improvement Program (FTIP) for their region; and

WHEREAS, the 2019 Federal Transportation Improvement Program (FTIP) Amendment 20 has been prepared to comply with Federal and State requirements for local projects and through a cooperative process between the Federal Highway Administration (FHWA), the Federal Transit Administration (FTA), the State Department of Transportation (Caltrans), principal elected officials of general purpose local governments and their staffs, and public owner operators of mass transportation services acting through the Merced County Association of Governments forum and general public involvement; and

WHEREAS, the 2019 FTIP Amendment 20 listing is consistent with: 1) the 2018 Regional Transportation Plan; 2) the 2020 State Transportation Improvement Program; and 3) the Corresponding Conformity Analysis; and

WHEREAS, the 2019 FTIP Amendment 20 contains the MPO’s certification of the transportation planning process assuring that all federal requirements have been fulfilled; and

WHEREAS, the 2019 FTIP Amendment 20 meets all applicable transportation planning requirements per 23 CFR Part 450; and

WHEREAS, projects submitted in the 2019 FTIP Amendment 20 must be financially constrained and the financial plan affirms that funding is available; and

WHEREAS, the 2019 FTIP Amendment 20 is consistent with the adopted Conformity Analysis for the 2019 FTIP and the 2018 RTP; and

WHEREAS, the 2019 FTIP Amendment 20 does not interfere with the timely implementation of the Transportation Control Measures; and

WHEREAS, the 2019 FTIP Amendment 20 conforms to the applicable SIPs; and

WHEREAS, the documents have been widely circulated and reviewed by MCAG advisory committees representing the technical and management staffs of the member agencies; representatives of

135 other governmental agencies, including State and Federal; representatives of special interest groups; representatives of the private business sector; and residents of Merced County consistent with public participation process adopted by MCAG; and

NOW, THEREFORE, BE IT RESOLVED, that MCAG adopts the 2019 FTIP Amendment 20.

BE IT FURTHER RESOLVED, that MCAG finds that the 2019 FTIP Amendment 20 is in conformity with the requirements of the Federal Clean Air Act Amendments and applicable State Implementation Plans for air quality.

The foregoing resolution was passed and adopted by MCAG this 20th day of August 2020.

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST:

I hereby certify that the foregoing is a true copy of a resolution of the Merced County Association of Governments duly adopted at a regular meeting thereof held on the 20th day of August 2020.

Signed: Signed:

______Stacie Guzman, Executive Director Paul Creighton, Chair Merced County Association of Governments Merced County Association of Governments

136 ITEM 12b

137 138 139 140 141 142 143 144 145 ITEM 12c

146 Measure V Regional Project Funding Agreement No. 20200721MF

MEASURE V REGIONAL PROJECT FUNDING AGREEMENT

between MERCED COUNTY ASSOCIATION OF GOVERNMENTS and the CITY OF LIVINGSTON

This Measure V Regional Project Funding Agreement (“AGREEMENT”), effective ______, 2020, is entered into by and between Merced County Association of Governments, a joint powers authority pursuant to California Government Code Section 6500 et seq. (MCAG), and the City of Livingston, (“RECIPIENT”) for the Hammatt and Campbell Intersection Project (“PROJECT”).

RECITALS

A. On November 8, 2016, the voters of Merced County, pursuant to the provisions of the Local Transportation Authority and Improvement Act, California Public Utilities Code Section 180000 et seq. (“Act”), approved Measure V, thereby authorizing MCAG to administer the proceeds from the one-half cent transaction and use tax (“Measure V”). B. The duration of the Measure V transportation sales tax will be 30 years from the initial year of collection, which began April 1, 2017, with said tax to terminate/expire on March 31, 2047. The tax proceeds will be used to pay for the programs and projects outlined in Merced County’s 2016 – ½ Cent Transportation Sales Tax Measure Expenditure Plan (“Expenditure Plan”), as it may be amended in accordance with State law. C. This AGREEMENT delineates the rights and responsibilities of the Parties hereto as they relate to the Regional Projects funds that are allocated to the PROJECT by the MCAG Governing Board, as authorized by the Expenditure Plan.

NOW, THEREFORE, it is mutually agreed by and between the parties as follows:

ARTICLE I: REGIONAL PROJECTS FUNDING ALLOCATION

This AGREEMENT authorizes MCAG to allocate Regional Projects funds derived from Measure V receipts to RECIPIENT in accordance with the voter-approved Expenditure Plan based on the PROJECT’s satisfaction of the following criteria:

147 Measure V Regional Project Funding Agreement No. 20200721MF

• The PROJECT is of regional significance by being located on the State Highway System, the Regional Road System, in more than one jurisdiction, and/or directly benefiting more than one jurisdiction. • The PROJECT is included in the applicable Regional Transportation Plan (RTP). • The PROJECT was recommended by the appropriate Regional Projects Committee of authority based on the PROJECT location. • The PROJECT was approved by the MCAG Governing Board. • The PROJECT is included in the current Measure V Implementation Plan.

ARTICLE II: PROJECT SCOPE, COSTS, AND SCHEDULE

A. Project Scope 1. The PROJECT funding allocation was approved by the MCAG Governing Board for Environmental, Design, and Construction. 2. The PROJECT will improve the intersection of Hammatt Ave. and Campbell Blvd. in Livingston to include a traffic signal, pavement, curb, gutter, and sidewalk. 3. In utilizing the Measure V funding allocation, the RECIPIENT shall only proceed with work authorized for the specific phase(s) with written “Authorization to Proceed.” Within 5 days of the execution of this AGREEMENT or amendment thereof, MCAG shall provide a written “Authorization to Proceed” to the RECIPIENT. B. Project Costs 1. The PROJECT has a total estimated project cost of $1,500,000 as of the date of this AGREEMENT. 2. The PROJECT has been approved for an allocation from the Measure V East Side Regional Projects funding account in an amount not to exceed $1,000,000. 3. The RECIPIENT is responsible for any PROJECT cost overruns. Requests for additional Measure V regional projects revenue beyond what is approved and programmed in the current Implementation Plan may be considered by MCAG through an amendment to the Implementation Plan. All Implementation Plan amendments must be approved by the Governing Board. 4. Regional funding allocated to RECPIENT for the PROJECT that remains unspent at the completion of the PROJECT will remain in the appropriate Regional Projects funding account

148 Measure V Regional Project Funding Agreement No. 20200721MF

and will be eligible for future programming to regional projects as authorized by the Expenditure Plan. C. Project Schedule 1. RECIPIENT shall adhere to the following schedule to deliver the PROJECT in a timely manner. Inactivity causing delays of 6 months or more during any phase of the PROJECT shall require action from the MCAG Governing Board to either extend the PROJECT schedule through an amendment to this AGREEMENT or reallocate the PROJECT’s funding to another project in the current Implementation Plan. a. Environmental July 2020 – June 2021 b. Design July 2020 – June 2021 c. Construction March 2021 – October 2021 2. The RECIPIENT has six months from the date of this AGREEMENT to execute consultant contracts or initiate work if done by the RECIPIENT’s staff. 3. The RECIPIENT shall advertise, award, and administer the PROJECT in accordance with RECIPIENT standards and all applicable federal and state laws. 4. Award information shall be submitted by the RECIPIENT to MCAG within sixty (60) days after the project contract award. 5. If no costs have been invoiced for a six-month period, RECIPIENT agrees to submit for each phase a written explanation of the absence of the PROJECT’s activity along with target billing date and target billing amount. 6. Measure V Regional Projects funding allocated to the PROJECT that remains unused at the conclusion of the PROJECT schedule above (including any extensions authorized by MCAG) may be redistributed to other regional projects within the current Implementation Plan at the discretion of the MCAG Governing Board. D. Changes to Project Changes to the PROJECT scope, schedule or Measure V Regional Projects funding allocation may require an amendment to the Measure V Implementation Plan at the discretion of the MCAG Governing Board. Subsequently, any amendments to the Implementation Plan related to the PROJECT will also require an amendment to this AGREEMENT, requiring action from both parties.

149 Measure V Regional Project Funding Agreement No. 20200721MF

ARTICLE III: FUNDING AND EXPENDITURES

A. MERCED COUNTY ASSOCIATION OF GOVERNMENTS (MCAG) 1. RECIPIENT shall be reimbursed no later than thirty (30) days following the submission of invoices to MCAG for allowed PROJECT costs, with the exception of costs associated with compliance with the requirements outlined in Article IV, Section A of this AGREEMENT. 2. MCAG shall provide the reimbursement forms and documentation requirements for the submission of invoices to RECIPIENT no later than thirty (30) days following the date of this AGREEMENT. 3. MCAG shall include Measure V Regional Projects funds distributed to the PROJECT in a quarterly report to the MCAG Governing Board. 4. Per the Expenditure Plan, MCAG shall provide for an independent annual audit of Measure V revenue and expenditures for all funding categories, including the PROJECT. 5. MCAG shall provide thirty (30) days notice to RECIPIENT prior to conducting an audit of Regional Project funds received by RECIPIENT for the PROJECT to determine whether the RECIPIENT’s use of said funds is in compliance with this AGREEMENT and the Expenditure Plan.

B. RECIPIENT’S DUTIES AND OBLIGATIONS 1. RECIPIENT shall use all Regional Projects funds received for this PROJECT in compliance with the applicable guidelines and plan(s), as they may be adopted or amended by the MCAG Governing Board in accordance with applicable law. 2. RECIPIENT must account for Regional Projects funds separately – independent of Measure V Local Projects accounts. The accounting system shall provide adequate internal controls and audit trails to facilitate an annual compliance audit for each fund type and the respective usage and application of said funds. MCAG and its representatives and agents shall have the right at any reasonable time to inspect and copy any accounting records related to such funds, except to the extent specifically prohibited by applicable law.

150 Measure V Regional Project Funding Agreement No. 20200721MF

3. RECIPIENT will utilize the Designated Reporting Tool to provide MCAG with the required information related to Regional Projects fund expenditures according to the following schedule:

Reporting Period Due Date

July 1 to September 31 October 31

October 1 to December 31 January 31 of following calendar year

January 1 to March 31 April 30

April 1 to June 30 August 31 (60 days are provided for the 4th quarter of each fiscal year)

C. OTHER CONSIDERATIONS 1. PROJECT-Specific Allocation: RECIPIENT shall use all Regional Projects funds allocated to the PROJECT solely for the PROJECT. Any jurisdiction that violates this provision, as determined by the MCAG Governing Board or Measure V Citizens Oversight Committee, must fully reimburse all misspent funds, including all interest which would have been earned thereon. The interest rate shall not exceed the maximum allowed by law. 2. Staff Cost Limitations: Direct costs associated with the delivery of programs and projects associated with the PROJECT, including direct staff costs and consultant costs, are eligible uses of said funds. Indirect costs, including, but not limited to, overhead costs such as rent, utilities, and human resources staff, are not allowed. 3. CEQA: The PROJECT shall comply with the California Environmental Quality Act (CEQA) and other environmental reviews as required. 4. Promotion: At a minimum, RECIPIENT agrees to promote the PROJECT through branded signage and is encouraged to utilize additional means such as news releases, social media, events, or any other tools to communicate to the public that the project was funded by Measure V. RECIPIENT also agrees to provide MCAG with at least five (5) photographs of the project, either in progress, before and after completion, or some combination thereof. At least one photograph of the completed PROJECT is required.

151 Measure V Regional Project Funding Agreement No. 20200721MF

ARTICLE IV: REPORTING REQUIREMENTS

A. REQUIREMENTS AND WITHOLDING RECIPIENT shall comply with each of the reporting requirements set forth below. If RECIPIENT fails to comply with one or more of these requirements, MCAG may withhold reimbursement payment for the PROJECT until full compliance is achieved. 1. As a means to keep the public informed, the RECIPIENT, at a minimum, shall provide quarterly updates of current and accurate information on RECIPIENT’s website (if applicable) and to MCAG for the Measure V website, related to the PROJECT’s progress. 2. RECIPIENT shall, at least annually, publish an article highlighting the PROJECT, or provide information to MCAG regarding such project or program for publication. 3. RECIPIENT shall make its administrative officer or designated staff available upon request to render a report or answer any and all inquiries in regard to RECIPIENT’s receipt, usage, and/or compliance with audit findings regarding the PROJECT before the Citizens Oversight Committee. 4. RECIPIENT agrees that MCAG may review and/or evaluate the PROJECT pursuant to this AGREEMENT. This may include visits by representatives, agents or nominees of MCAG to observe RECIPIENT’s project or program operations, to review project or program data and financial records, and to discuss the project with RECIPIENT’s staff or governing body.

ARTICLE V: OTHER PROVISIONS

A. INDEMNITY BY RECIPIENT Neither MCAG nor its governing body, elected officials, officers, consultants, agents or employees shall be responsible for any damage or liability occurring by reason of anything done or omitted to be done by RECIPIENT in connection with the Regional Projects funds distributed to RECIPIENT for the PROJECT pursuant to this AGREEMENT. It is also understood and agreed, pursuant to Government Code Section 895.4, that RECIPIENT shall fully defend, indemnify and hold harmless MCAG, its governing body, elected officials, officers, agents and employees from any liability imposed on MCAG for injury (as defined in Government Code Section 810.8) occurring by reason of anything done or omitted to be done by RECIPIENT for the PROJECT in connection with the Regional Projects funds distributed to RECIPIENT pursuant to this AGREEMENT.

152 Measure V Regional Project Funding Agreement No. 20200721MF

B. INDEMNITY BY MCAG Neither RECIPIENT nor its governing body, elected officials, officers, consultants, agents or employees shall be responsible for any damage or liability occurring by reason of anything done or omitted to be done by MCAG under or in connection with any work, authority or jurisdiction delegated to MCAG under this AGREEMENT. It is also understood and agreed, pursuant to Government Code Section 895.4, that MCAG shall fully defend, indemnify and hold harmless RECIPIENT, its governing body, elected officials, officers, agents and employees from any liability imposed on RECIPIENT for injury (as defined in Government Code Section 810.8) occurring by reason of anything done or omitted to be done by MCAG under or in connection with any work, authority or jurisdiction delegated to MCAG under this AGREEMENT.

C. JURISDICTION AND VENUE The laws of the State of California will govern the validity of this AGREEMENT, its interpretation and performance, and any other claims to which it relates. All legal actions arising out of this AGREEMENT shall be brought in a court of competent jurisdiction in Merced County, California.

D. ATTORNEY’S FEES Should it become necessary to enforce the terms of this AGREEMENT, the prevailing party shall be entitled to recover reasonable expenses and attorney’s fees from the other party.

E. TERM The term of this AGREEMENT shall be from ______, 2020 to sixty (60) days following the completion of the scope of work as described in Article II, unless amended in writing or a new Measure V Regional Project Funding Agreement is executed between MCAG and RECIPIENT.

F. SEVERABILITY If any provision of this AGREEMENT is found by a court of competent jurisdiction to be unenforceable, such provision shall not affect the other provisions of the AGREEMENT, but such unenforceable provisions shall be deemed modified to the extent necessary to render it

153 Measure V Regional Project Funding Agreement No. 20200721MF

enforceable, preserving to the fullest extent permissible the intent of the parties set forth in this AGREEMENT.

G. ENTIRE AGREEMENT; MODIFICATION This AGREEMENT, as well as the referenced Expenditure Plan, constitutes the entire AGREEMENT and supersedes all prior written or oral understandings regarding the Regional Projects funding for the PROJECT. This AGREEMENT may only be modified by a written agreement executed by both parties.

IN WITNESS WHEREOF, the parties have executed this AGREEMENT by their duly authorized officers as of the date first written below.

CITY OF LIVINGSTON (RECIPIENT) MERCED COUNTY ASSOCIATION OF GOVERNMENTS (MCAG)

By: By:

Name Date Stacie Guzman Date Title Executive Director

Approved as to Legal Form: Reviewed as to Budget/Financial Controls:

By: By:

Name Date Nav Bagri Date Title Finance Director

Approved as to Legal Form:

By:

Emily Haden Date Legal Counsel to MCAG

154 ITEM 12d

155

PH: 209.723.3153 FAX: 209.723.0322 www.mcagov.org 369 W. 18th Street Merced, CA 95340

ITEM 12d

DATE: August 14, 2020

TO: MCAG Governing Board

FROM: Nav Bagri, Finance Director

RE: ACTION: Authorize contract for Internet Service Provider

SUMMARY

MCAG’s Internet services contract is set to expire on September 30, 2020, with the current provider, Vast Networks. Staff is seeking board approval to enter into a new contract to provide internet services for three years with two one-year term options for the MCAG Administration Building.

REQUESTED ACTION

Authorize the Executive Director to enter into a three-year base contract, with two one-year extension options, for an internet service provider in an amount not to exceed $42,000.

BACKGROUND

The internet can travel by radio waves, phone lines, cable networks, and even the electrical wiring in your house. Most data travels between computers using physical wires. Cable, Digital Subscriber Line (DSL), and fiber are the most common type of installation that carries internet service. MCAG has two options; DSL and fiber optic line. The difference between fiber optic and DSL is, fiber optic internet connections deliver faster download and upload speeds than DSL and cable, usually 250–1000 Mbps. Cable and DSL offer download speeds in the 25–500 Mbps range. Cable and DSL upload speeds are generally much lower in the 5–30 Mbps range. Fiber may be priced a bit higher, but the service is more reliable. The primary difference between cable and DSL is that cable uses newer "coaxial" lines, which can carry more bandwidth. DSL uses older telephone lines. DSL speeds usually cap out around 25–100 Mbps, which is about half the normal speed range for cable internet. DSL providers often build fiber lines closer to residences in urban areas, which results in faster maximum speeds.

Currently, the download and upload speed at our MCAG Administration building are 250Mbps, with an on-time success performance of 99.7%.

MCAG has been in contract with Vast Networks since September 12, 2016. The service Vast Networks has provided is satisfactory to the agency. The original agreement was for two years with one-year options, and MCAG has exercised all extension options leading up to its final expiration. MCAG’s policy is to seek new proposals as each service contract expires, and all extension options have been utilized.

156 MCAG staff began the procurement process for a new service provider with the release of a Request for Proposals on June 19, 2020. The evaluation criteria were based on performance speed, reliability, cost, response time, and technical support. Members of the evaluation committee were composed of three internal staff and a City of Soledad IT Director. Two (2) proposals were received by the July 8, 2020. Proposed amounts ranged from $9,000 - $14,268 annually.

Below is the evaluation creteria along with proposal detail and scoring:

Evaluation Criteria Possible Points Preformance Speed 25 Reliability 25 Cost 20 Response Time 15 Technical Support 15 Total 100

Proposal Details and Scoring Vendor Name Proposed Price Evaluation Score Vast Neworks $ 42,000 98.75 Granite Telecommunications LLC $ 72,840 85.75

Following the evaluation and interview process, Vast Networks was the highest ranked service provider for the proposed contracted services. Staff is recommending the Governing Board approve a three year contract with two one-year extension options, in the amount not to exceed the following:

Service Contract Amount Base Contract (2020-23) $27,000 Option – Year 1 (2023-24) $7,800 Option – Year 2 (2024-25) $7,200 Total $42,000

MCAG will exercise extension option terms at each successful year of performance.

FISCAL IMPACT

25% decrease in internet service expenses.

The Technical Review Board concurs with the requested action.

REQUESTED ACTION

Authorize the Executive Director to enter into a three-year base contract, with two one-year extension options, for an internet service provider in an amount not to exceed $42,000.

157 ITEM 14

158 PH: 209.723.3153 FAX: 209.723.0322 www.mcagov.org 369 W. 18th Street Merced, CA 95340

ITEM 14

DATE: August 14, 2020

TO: MCAG Governing Board

FROM: Matt Fell, Deputy Director

RE: INFORMATION: Measure V Implementation Plan status report

SUMMARY

Measure V revenues are projected to go down due to the COVID-19 pandemic; however, even if there are significant and sustained revenue reductions, there will be enough to meet all programmed commitments to Regional Projects in the Implementation Plan for the next 2 to 3 years. On the other hand, it appears there may not be any additional revenue to consider programming against in the next Implementation Plan update, due by Fall of 2021.

BACKGROUND

The Measure V Expenditure Plan requires an Implementation Plan be prepared/updated at a minimum of once every two years. The first plan was adopted in 2018 and it was updated last Fall. The Implementation Plan concerns only East Side and West Side Regional Projects and Transit. It includes a financial plan and a revenue forecast. Its primary purpose is to program projects or project components by year against the projected revenue. For each Regional Project, a funding agreement is entered into between the implementing agency and MCAG, which then provides for project expenditures to occur on a reimbursement basis.

The 2019 Plan is available at http://www.mcagov.org/DocumentCenter/View/2482. Attached is Appendix A of the Plan, which show the East and West programming schedules by Fiscal Year (FY). East Side programming is through FY 2024-25, while West Side programming is through FY 2028-29.

PAST ACTION TAKEN

September 2019: MCAG Governing Board approved the Measure V 2019 Implementation Plan Update.

STATUS REPORT

Staff has compared the programming schedules in the Implementation Plan to potential revenue generation scenarios to see if we can expect there to be enough funds for all programmed projects or not.

159

Revenue reductions

The COVID-19 health crisis has had many impacts to the economy, including a reduction in sales tax generation, from which all Measure V revenue derives. At this time, it appears there will be a significant reduction in Measure V revenue for FY 19-20 compared to the previous year – perhaps as much as 17%. In FY 18-19 total revenue was almost $20 million; in 2019-20 it could be as low as $16.5 million.

Looking ahead to 2020-21 is difficult because there continues to be much uncertainty over the duration and extent of the economic impacts.

As reported last month, revenue received through March 31, 2020 for Regional Projects is: • $14.91 million for East Side Regional Projects • $9.39 million for West Side Regional Projects

On the East Side about $5 to 5.3 million has been received annually, while on the West Side it has ranged from $3 to $3.4 million.

Expenditures

Per the programming schedules in the Implementation Plan, Appendix A (attached), the cumulative or “running total” amounts programmed on the East and West sides through the ends of the next few Fiscal Years are shown in the table below. All amounts are in millions of dollars:

Cumulative programming through: Received as of FY 19-20 FY 20-21 FY 21-22 FY 22-23 3/31/2020 (6/30/2020) (6/30/2021) (6/30/2022) (6/30/2023) East Side 14.91 9.14 15.35 20.53 24.30 West Side 9.39 4.8 5.1 5.4 10.687

Analysis

This analysis assumes that all projects/components incur their entire costs by the end of their programmed years.

East Side: enough revenue has already been received for all existing and programmed commitments for the next year. Subsequent years add 5.2 and 3.8 million of programming, respectively. If over that time revenue comes in at pre-COVID amounts, or even at 20% less per year for three years, there will be enough funding to stay a year “ahead of” programmed commitments. If revenue drops up to 40%, there will still be enough to meet programmed commitments by year but there would be no margin.

Programmed projects/components through 2022-23 are: • Atwater-Merced Expressway, phase 1B, design and right-of-way • Highway 59 Widening from 16th to Olive • Highway 59 Black Rascal Bridge • Hammat & Campbell intersection improvement • Highway 99 Winton Parkway on-ramp

160

West Side: with cash already in the bank, all existing and programmed commitments on the West Side can be met for the next two years. About 1-1/2 years’ worth of pre-COVID revenue, or $1.3 million, covers the third year as well.

Programmed projects/components through 2022-23 are: • Center Avenue North Area project • Pacheco Blvd. Path from Los Banos to Merced College • Pioneer Road Widening, Environmental through Design • Gustine Highway 33/140 Roundabout

Implementation Plan 2021 Update

The next Implementation Plan is due by next Fall. Based on the above, it appears there will be sufficient funding to cover all programmed commitments in the next several years. However, it may be risky to add any additional projects as revenues may not be able to support commitments within a few years if revenue reductions are large and sustained.

REQUESTED ACTION

For information only.

ATTACHMENTS

Measure V 2019 Implementation Plan Update, Appendix A

161 Measure V East Side RPC Recommendation, June 26, 2019 All amounts in millions of dollars (x $1,000,000) Prior approved project amounts are shaded in yellow. June 26, 2019 recommendations are shaded in green. Fiscal Years: 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25 Projected Revenue (East) (unescalated): 4.05 4.05 4.05 4.05 4.05 4.05 4.05 4.05 (A) Major Projects - percent (%) 20% 20% 75% 75% 75% 75% 75% 75% (A) Major Projects - revenue 0.81 0.81 3.04 3.04 3.04 3.04 3.04 3.04 (A) programmed amounts 0.00 0.00 0.00 6.21 5.18 3.77 4.05 0.58 (A) Major Projects - balance 0.81 1.62 4.66 1.49 (0.66) (1.39) (2.40) 0.05 (B) Smaller Projects - percent (%) 80% 80% 25% 25% 25% 25% 25% 25% (B) Smaller Projects - revenue 3.24 3.24 1.01 1.01 1.01 1.01 1.01 1.01 (B) programmed amounts 0.00 6.48 2.66 0.00 0.00 0.00 0.00 1.90 (B) Smaller Projects - balance 3.24 0.00 (1.65) (0.64) 0.38 1.39 2.40 1.52 East Side Regional Projects - overall balance 3.01 0.85 (0.28) 0.00 0.00 1.57

Projects and Schedule of Funding by FY 18-19 19-20 20-21 21-22 22-23 23-24 24-25 (A) Major Projects and Leveraging: County AME, phase 1B 0.00 2.58 3.77 4.05 0.58 Merced 59 Widening, phase 1 0.76 5.18 Merced 59 Black Rascal Bridge 0.46 3.63 (A) Subtotals By FY: 0.00 6.21 5.18 3.77 4.05 0.58 (B) Smaller Projects: Atwater Winton Way, phase 2 1.00 1.66 Livingston Hammatt & Campbell 1.00 Livingston Transit Center 1.90 (B) Subtotals By FY: 2.66 0.00 0.00 0.00 0.00 1.90 Livingston 99 Winton Parkway On-Ramp 0.84 County Bradbury Rd 0.95 County Sandy Mush, phase 1 2.47 (ALL) Totals By FY: 6.48 2.66 6.21 5.18 3.77 4.05 2.48

162 Measure V West Side RPC Recommendation, May 14, 2019 All amounts in millions of dollars (x $1,000,000) Prior approved project amounts are shaded in yellow. May 14, 2019 recommendations are shaded in green.

Fiscal Years: 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25 25-26 26-27 27-28 28-29

Projected Revenue (unescalated): $2.55 $2.55 $2.55 $2.55 $2.55 $2.55 $2.55 $2.55 $2.55 $2.55 $2.55 $2.55

Set-aside % 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20%

Set-aside amount $ 0.51 $ 0.51 $ 0.51 $ 0.51 $ 0.51 $ 0.51 $ 0.51 $ 0.51 $ 0.51 $ 0.51 $ 0.51 $ 0.51

Set-aside expenditures (use 0's) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Set-aside running balance $ 0.51 $ 1.02 $ 1.53 $ 2.04 $ 2.55 $ 3.06 $ 3.57 $ 4.08 $ 4.59 $ 5.10 $ 5.61 $ 6.12

Project revenue % 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80%

Project revenue $ 2.04 $ 2.04 $ 2.04 $ 2.04 $ 2.04 $ 2.04 $ 2.04 $ 2.04 $ 2.04 $ 2.04 $ 2.04 $ 2.04

Projects funded $ - $ 4.08 $ 0.74 $ 0.30 $ 0.30 $ 5.27 $ 3.15 $ 3.53 $ 1.79 $ 1.60 $ - $ 5.03 Project funds running balance $2.04 $0.00 $1.30 $3.05 $4.79 $1.55 $0.44 ($1.04) ($0.79) ($0.35) $1.69 ($1.30)

Projects and Schedule of Funding by FY 18-19 19-20 20-21 21-22 22-23 23-24 24-25 25-26 26-27 27-28 28-29

Dos Palos Center Avenue North Area $ 0.200 $ 0.586

Dos Palos Blossom Street East Area $ 0.400 $ 1.588

Gustine Hwy. 33/140 Signalization - $ 0.050 $ 0.350 $ 0.200 $ 1.600

Los Banos Pacheco Blvd Path $ 0.600 $ 0.298 $ 1.323

Los Banos Pioneer Road Widening - $ 0.150 $ 0.300 $ 3.900 $ 2.800 $ 1.500

County Henry Miller Ave., Phase 2 $ 2.426 $ 5.025

County Ingomar Grade Reconstruction - $ 2.025

Gustine 33/140 Roundabout $ 0.310

Gustine Eastside Storm Drainage $ 0.069

Gustine Airport Security $ 0.075

Project Funding Totals By FY: $ 4.080 $ 0.736 $ 0.298 $ 0.300 $ 5.273 $ 3.150 $ 3.525 $ 1.788 $ 1.600 $ - $ 5.025

163 ITEM 15

164 PH: 209.723.3153 FAX: 209.723.0322 www.mcagov.org 369 W. 18th Street Merced, CA 95340

ITEM 15

DATE: August 14, 2020

TO: MCAG Governing Board

FROM: Matt Fell, Deputy Director

RE: ACTION: Approve use of Federal Planning carryover funding to update YARTS Short Range Transit Plan

SUMMARY

Staff is proposing to add a study to Overall Work Program element 123, Transit Planning, using carryover federal planning funds to update the Yosemite Area Regional Transportation System (YARTS) Short Range Transit Plan (SRTP).

REQUESTED ACTION

Approve the use of up to $100,000 of Federal Planning carryover funding to update the YARTS Short Range Transit Plan.

BACKGROUND

As a Metropolitan Planning Organization (MPO), MCAG receives federal “Metropolitan Planning” funds, also known as “PL”. These provide the majority of the funds for MCAG’s planning activites, as detailed in the annual Overall Work Program (OWP) which is submitted to Caltrans and the Federal Highway Administration (FHWA) for approval. These funds are usually about $750,000 per year. In the past, MCAG, like other small MPO’s, has not always used all of its new funding each year and the practice has been to accumulate funding over several years to pay for large expenditures such as the Regional Transportation Plan (RTP), which can be well over $500,000.

PAST ACTION TAKEN

April 2020: MCAG Governing Board approved the Overall Work Program FY 2020-2021.

UPDATES

PL Carryover: Recently, FHWA and Caltrans have emphasized the need for all MPO’s to “spend down” the carryover balance to no more than 100%. Caltrans is asking us to demonstrate how we can achieve that by the end of FY 2021-22 (two years from now). MCAG’s carryover balance has been as high as about 280% in 2016, before the large expenditures for the 2018 Regional Transportation Plan. Recently

165 it has been closer to 200%. At the end of FY 2018-19 it was $1.48 million; in FY 2019-20 we received $0.77 million and spent somewhat more than that, so our carryover balance remains about the same.

We have several transit and others studies underway or coming up this year and next, including the Regional Transportation Plan update, which will help bring the carryover balance down. However, there is a risk that Caltrans could ask us to transfer PL to another agency if they feel our carryover is too high – this has happened to Kings County Association of Governments whose carryover balance has been the highest in the state.

Next month, staff will begin soliciting ideas for planning studies that are regional in nature, for potential inclusion in next year’s budget (FY 2021-22). Staff will explain the eligibility of PL funding and provide lists of sample studies MCAG and/or other agencies have undertaken.

YARTS SRTP Updates: Transit agencies including the Transit Joint Powers Authority (TJPA) and Yosemite Area Regional Transportation System (YARTS) are experiencing numerous challenges related to the COVID-19 situation, including ridership and revenue declines as well as operational and safety concerns. A great deal of planning and analysis needs to be done to help these services adapt to these issues and revise their financial outlook and operations accordingly. The OWP already includes an update to the TJPA Short Range Transit Plan, and we are updating the scope to include addressing all aspects of COVID-19. Also note that TJPA received millions of dollars in funding from the federal CARES Act to help with lost revenue and operational issues, but YARTS did not. Staff is proposing to use some of the planning funds carryover balance to update relevant portions of the YARTS SRTP to address the crisis, especially the financial aspects of the plan.

The Technical Review Board concurs with the requested action.

REQUESTED ACTION

Approve the use of up to $100,000 of Federal Planning carryover funding to update the YARTS Short Range Transit Plan.

166 ITEM 16

167

PH: 209.723.3153 FAX: 209.723.0322 www.mcagov.org 369 W. 18th Street Merced, CA 95340

ITEM 16

DATE: August 14, 2020

TO: MCAG Governing Board

FROM: Ty Phimmasone, Associate Planner

RE: ACTION: Approve delegation of authority to the Executive Director to enter into Congestion Mitigation Air Quality (CMAQ) Exchange agreements

SUMMARY

Three times in the last decade, and twice recently, MCAG has exchanged (loaned) unused, annual Congestion Mitigation Air Quality (CMAQ) apportionments with other regions. These exchanges have preserved our region’s funds for projects. If the authority to enter into agreements is delegated to the Executive Director, MCAG will be able to take advantage of exchange opportunities presented on short notice.

REQUESTED ACTION

Delegate authority to the Executive Director to enter into CMAQ exchange agreements.

BACKGROUND

MCAG has exchanged CMAQ with other regions in the past, for the purpose of preserving MCAG’s apportionments and thereby preserving funding for projects that are experiencing delivery delays. These exchanges included the 2012 exchange with San Joaquin Council of Governments (SJCOG) for $2.1 million, the 2019 exchange with San Diego Association of Governments (SANDAG) for $3.9 million, and the 2019 exchange with Sacramento Area Council of Governments (SACOG) for $1.3 million. In each instance, the other agency was able to obligate/encumber the funds using our exchanged funds and “paid it back” using their apportionment in a subsequent year. When an exchange agreement is entered into by both parties, Caltrans Headquarters shifts apportioned funds between the regions per the exchange agreement.

Last month, SJCOG presented staff an opportunity for an exchange of MCAG’s unobligated $2 million CMAQ apportionment with repayment in the upcoming year. This would have guaranteed preservation of the unobligated funds for the Gustine Roundabout Project. Without, Gustine will have until early Spring 2021 to be construction-ready.

Unfortunately this opportunity was presented with a very short time frame for authorization, which did not allow time for staff to bring it to the Governing Board. With past exchanges there has been enough time to do so. Subsequent to this, staff learned that some other regions have implemented a delegated

168 authority to their Executive Directors to enter into these exchange agreements. These other regions include SJCOG, SANDAG and SACOG. Staff is requesting delegated authority in case another quick turn- around opportunity such as this occurs in the future. If there is enough time to bring a request to the Board, staff will continue to do so.

PAST ACTIONS TAKEN

May 2012: MCAG Governing Board approved MCAG-SJCOG CMAQ Exchange Agreement for $2.1 million. SJCOG has since repaid the loan.

April 2019: MCAG Governing Board approved MCAG-SANDAG CMAQ Exchange Agreement for $3.9 million. SANDAG will repay the loan in upcoming fiscal year. This was the reason for the recent Call for Projects.

June 2019: MCAG Governing Board approved MCAG-SACOG CMAQ Exchange Agreement for $1.3 million. SACOG repaid this amount in this current year.

If you have any questions regarding this staff report, please contact Ty Phimmasone at 723.3153 x 123 or [email protected].

FISCAL IMPACT

No immediate impact from this delegation.

The Technical Review Board concurs with the requested action.

REQUESTED ACTION

Delegate authority to the Executive Director to enter into CMAQ exchange agreements.

ATTACHMENTS

Draft Resolution No. 2020/08-20-04

169

RESOLUTION NO. 2020/08-20-04

RESOLUTION OF THE MERCED COUNTY ASSOCIATION OF GOVERNMENTS (MCAG) ASSIGNING AUTHORITY TO THE MCAG EXECUTIVE DIRECTOR TO ENTER INTO AGREEMENT TO EXCHANGE CONGESTION MITIGATION AIR QUALITY (CMAQ) FUNDS

WHEREAS, the Merced County Association of Governments (MCAG) is a Regional Transportation Planning Agency and a Metropolitan Planning Organization, pursuant to State and Federal designation; and

WHEREAS, the Congestion Mitigation Air Quality (CMAQ) is a federal program, whose primary goals are to improve air quality and reduce congestion; and

WHEREAS, CMAQ provides funding to the Merced Region for transportation projects or programs that will contribute to attainment or maintenance of the National Ambient Air Quality Standards for ozone, and particulate matter (both PM10 and PM2.5); and

WHEREAS, the MCAG Board approves the use and programming of the region’s CMAQ funds, while meeting Federal CMAQ guidelines; and

WHEREAS, MCAG receives opportunities to exchange/loan unused CMAQ funds with another region; and

THEREFORE, BE IT RESOLVED, that the MCAG Governing Board assigns authority to the MCAG Executive Director to enter into agreement to exchange CMAQ funds on behalf of the Board.

The foregoing resolution was introduced at the regular meeting of the Governing Board on August 20,

2020, by ______, who moved its adoption, which motion was duly seconded

by ______, and adopted by the following vote:

AYES:

NOES:

ATTEST: APPROVED:

Stacie Guzman, Executive Director Paul Creighton, Chair Merced County Association of Merced County Association of Governments Governments Governing Board

170 ITEM 17

171

PH: 209.723.4481 FAX: 209.384.3109 7040 N. Highway 59 Merced, CA 95348

ITEM 17

DATE: August 14, 2020

TO: Merced County Regional Waste Management Authority

FROM: Eric Zetz, Director

RE: INFORMATION: Merced County Regional Waste Management Authority monthly update

SUMMARY

Monthly update of the Merced County Regional Waste Management Authority activities for the month of June 2020.

REQUESTED ACTION

For information only.

BACKGROUND

In order to keep the Technical Review Board (TRB) and Merced County Regional Waste Management Authority (MCRWMA) Board informed, the MCRWMA Director, Eric Zetz, will provide a monthly update on the following MCRWMA’ activities: 1) Tonnage reports for June; 2) Highway 59 Household Hazardous event; 3) HF&H / SB 1383; 4) Landfill Gas to Energy project; 5) Highway 59 East Expansion; and 6) Electronic Annual Report (EAR).

PAST ACTIONS TAKEN

The MCRWMA Director provided an update on the May activities to the Governing Board on June 12, 2020.

FISCAL IMPACT

None, for information only.

REQUESTED ACTION

For information only.

ATTACHMENT

None.

172 ITEM 18a

173

PH: 209.723.4481 FAX: 209.384.3109 7040 N. Highway 59 Merced, CA 95348

ITEM 18a

DATE: August 14, 2020

TO: Merced County Regional Waste Management Authority

FROM: Kyle Loreto, Diversion Program Manager

RE: ACTION: Authorize contract for delivery of gasoline and diesel

SUMMARY

The Regional Waste Management Authority (MCRWMA) is seeking to enter into a contract for the delivery of gasoline and diesel at both landfills for three years with three one-year options.

REQUESTED ACTION

Authorize the Executive Director to enter into a contract for the delivery of gasoline and diesel at both landfills for three (3) years, with three (3) one (1) year options, in the amount not to exceed $180,000.

BACKGROUND

Regional Waste Management (RWA) has been in contract with Tesei Petroleum for fuel services since September 2015. With the current contract expiring September 1, 2020, staff began the procurement process with the release of an Invitation for Bids (IFB) on June 25, 2020. The contractor selected from this process is expected to deliver gasoline and diesel for agency vehicles, heavy machinery and pool vehicles at the Highway 59 and Billy Wright landfills. Bidders were invited to schedule individual site visits at both landfills from July 6-8. Bids were due July 20, 2020 at 10:30 a.m. and a total of five (5) bids were received as follows:

Bidder: Bid Amount: A $22,476.00 B $73,280.00 C $76,470.00 D $95,707.60 E $299,298.60

Following the bid opening and staff bid review process, W. H. Breshears, Inc. was selected as the contractor to provide fuel delivery services. Staff is recommending the Merced County Regional Waste Management Authority Governing Board to approve a contract to the lowest, responsive, and responsible bidder for three years with three one-year options in an amount not to exceed $180,000.

If you have any questions regarding this staff report, please contact Kyle Loreto at 209.723.4481 x226 or at [email protected].

174 PAST ACTION TAKEN

August 2015: Governing Board authorized agreement for fuel services with Tesei Petroleum.

UPDATES

This action will authorize the Executive Director to sign a contract with the successful bidder to provide fuel delivery services to both landfills.

FISCAL IMPACT

The contract services will be funded through MCRWMA’s yearly fuel services budget, account number: 63200.

The Technical Review Board concurs with the requested action.

REQUESTED ACTION

Authorize the Executive Director to enter into a contract for the delivery of gasoline and diesel at both landfills for three years with three one-year options in the amount not to exceed $180,000.

ATTACHMENT

None.

175 ITEM 18b

176

PH: 209.723.4481 FAX: 209.384.3109 7040 N. Highway 59 Merced, CA 95348

ITEM 18b

DATE: August 14, 2020

TO: Merced County Regional Waste Management Authority

FROM: Eric Zetz, Director

RE: ACTION: Authorize consultant contract to prepare environmental documents for Highway 59 landfill expansion project

SUMMARY

The Merced County Regional Waste Management Authority (MCRWMA) Board approved the MCRWMA 2020/2021 budget on June 18, 2020 which includes funds for an expansion project to the east of the Highway 59 landfill. Ascent Environmental completed the Environmental Impact Report for the Highway 59 landfill Valley Fill project that will now need to be amended to include the expanded land to the east in order to install landfill gas probes and monitoring wells to assist in gas collection and migration at the site.

REQUESTED ACTION

Authorize the Executive Director to enter into a contract for the preparation of environmental amendment documents for the Highway 59 landfill east buffer expansion project in an amount not to exceed $95,000.

BACKGROUND

The Highway 59 Landfill is currently under a Compliance Schedule issued by the Merced County Division of Environmental Health acting as the Solid Waste Local Enforcement Agency to remediate offsite landfill gas (LFG) migration on the easterly edge of the unlined Phases 1-4. The GCCS project has the additional benefits of 1) increasing the total LFG flow and associated revenue from the sale of electricity for the proposed LFG to energy project with UC Merced and; 2) preparing the GCCS to accommodate additional future LFG flow from the proposed Valley Fill refuse capacity expansion project between Phases 1-4 and Phase 5, at the Highway 59 landfill.

In order to provide uninterrupted service at the Hwy 59 landfill, a new disposal unit/expansion must be constructed and in operation when the current phase (6A) reaches capacity in 2019. Due to budget limitations the Board approved the Valley Fill project in January 2014 to explore the possibility of lining the valley that lay between Phases 1-4 and Phase 5 of Highway 59 landfill. At the time it was approved, it was understood that this expansion would have to undergo a rigorous environmental review process; a process that was warranted since the Valley Fill project is supposed to yield 18% more volume at 40% of the cost of utilizing the next phase in sequence (6B) that had secured environmental approvals in 1996.

In February 2014 the Merced County Regional Waste Management Authority Board authorized the

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Executive Director to sign a contract with Ascent Environmental for the preparation of an Environmental Impact Report (EIR) for the Highway 59 Landfill Valley Fill Project. On April 21, 2014, a contract with Ascent Environmental was finalized. The initial task was to prepare an Environmental Impact Report to consider the potential effects of the project on the environment and to adopt and implement mitigation measures that avoid or substantially lessen the effects of those activities on the environment to the extent feasible. A Draft EIR for the Valley Fill Project was circulated for public review and comment on September 17, 2015 and a public hearing to receive oral comments was conducted on October 15, 2015. All comments on environmental issues received during the comment period on the Draft EIR were evaluated. Written responses were prepared and are included in the Final EIR. The “Findings of Fact and Statement of Overriding Considerations” addressed the environmental effects associated with the Project that were described and analyzed within the Final EIR.

On February 15, 2019 the Governing Board Contract Authorization for Highway 59 Landfill Gas Collection and Control System (GCCS) Expansion Construction Contracts and Related Budget Amendments. This project consisted of installation of 38 new landfill gas (LFG) extraction wells and associated lateral collectors in Phases: 1-4, and also Phase 5; as well as an extension of the main LFG header that conveys the landfill gas to the existing flare for destruction. The project also included new wellheads for all existing LFG extraction wells that will allow for more effective tuning to optimize wellfield performance. Upon this approval, the Governing Board authorized $600,000 to be allocated to Capital Project 80045 to construct various GCCS expansion projects. Prior to this approval most of the allocated funds had been spent expanding the Phase 6A GCCS during the Summer of 2018. The Governing Board authorized $1.2 million in funds to be transferred from Highway 59 Valley Fill Construction (80036) to Capital Project #80045, increasing the total authorization from $600,000.00 to $1,800,000.

RWA has been monitoring and addressing a gas migration issue (MMW#45) at the east side boundary of the Highway 59 site. RWA has taken several measures in attempt to mitigate the migration of this gas onto private property including the expansion of the gas collection system. It has been widely discussed that if these efforts to draw the migrating gas back onto the landfill property are unsuccessful, the Authority will need to consider expanding the eastern boundary of the site. This migration issue must be resolved before the Authority can proceed with the Valley Fill project. The current approach to address the gas migration issue is to install gas probes and monitoring wells on property beyond the landfill boundary which requires additional environmental review work prior to proceeding.

The Environmental Review of the Valley Fill project will require an amendment to the 2016 EIR and Ascent Environmental has the familiarity and available staff to accommodate the Authority in a timely manner.

PAST ACTION TAKEN

May 2016: Resolution No. 2016/05-19-03 was approved by the Governing Board certifying the Highway 59 landfill, proposed Valley Fill project’s Final EIR Report. And, resolution No. 2016/05-19-04 was approved by the Governing Board approving the Highway 59 landfill Valley Fill Project, adopting the California Environmental Quality Act (CEQA) Findings of Fact and Statement of Overriding Considerations.

On February 15, 2019 the Governing Board Contract Authorization for Highway 59 Landfill Gas Collection and Control System (GCCS) Expansion Construction Contracts and Related Budget

178 Amendments.

UPDATES

This action will authorize the Executive Director to sign a contract with Ascent Environmental Inc. for the additional scope of the Valley Fill Project to include the projected east expanded land to remedy the gas migration from Highway 59 landfill.

Based upon their familiarity with the Valley Fill EIR certified in 2016 and importance of the Project, Authority staff requests authorization to contract with Ascent Environmental to prepare environmental review documents for the Highway 59 landfill expansion project in an amount not to exceed $95,000.

If you have any questions regarding this staff report, please contact Eric Zetz at 209.723.4481 x221 or at [email protected].

FISCAL IMPACT

Authority Capital Project #80020 (Highway 59 East Buffer Gas Collection System Expansion Project) has been previously authorized, and $1,500,000 has been allocated for this project by the Governing Board.

The Technical Review Board concurs with the requested action.

REQUESTED ACTION

ATTACHMENTS

Exhibit A: Cost Estimate Detail Exhibit B: Scope of Work Exhibit C: Agreement Exhibit D: Resolution No. 2016-05-19-03 Valley Fill Final EIR Exhibit E: Resolution No. 2016-05-19-04 Valley Fill CEQA Findings & Considerations

179 PRICE PROPOSAL Mundhenk Lowenthal Highway 59 Landfill Valley Fill EIR Addendum for LFG Probes and Monitoring Wells Project Cultural Res. c Principal Sr. Biologist Biologist Env. Planner WP/GIS Manager Specialist 14-Jul-20 hourly rate: $230 $140 $150 $170 $145 $120 $130 Task 1: AB 52 Consultation Support Price Hours 1.1 Kickoff Meeting $ 1,480 8 4 4 1.2 Review Existing Information $ 1,070 7 1 6 1.3 Design Team Meetings $ 1,480 8 4 4 1.4 Prepare Project Description $ 2,960 20 2 16 2 Subtotal, Task 1$ 6,990 43 11 30 0 0 0 0 2

Task 2: Initial Study/Mitigated Negative Declaration Price Hours 2.1 Administrative Draft Addendum $ 22,510 152 12 44 16 4 50 12 14 2.2 Final Addendum $ 8,800 60 4 24 4 2 16 4 6 Subtotal, Task 2$ 31,310 212 16 68 20 6 66 16 20

Task 3: Meetings and Project Management Price Hours 3.1 Project Management $ 3,680 24 4 16 4 Subtotal, Task 3$ 3,680 24 4 16 0 0 0 0 4

LABOR SUBTOTAL $ 41,980 279 31 114 20 6 66 16 26

$ 7,130 $ 15,960 $ 3,000 1,020$ 9,570$ 1,920$ 3,380$

REIMBURSABLE EXPENSES $ 12,891 ASSUMPTIONS Assumptions that explain the basis of the proposed price are enclosed and are an integral part Printing $ 300 of this proposed scope for work for services. Reproduction $ - Assumes up to 10 documents @ $30/doc Mileage / Parking / Travel $ 300 Assumes ~500 miles for kickoff meeting and site visit Mileage reimbursement rate (2020 IRS) = $0.575/mile Postage $ 50 Field Equipment $ - Other/Miscellaneous $- Subconsultants (Natural Investigations) $ 11,128 10% administrative markup of subconsultant $ 1,113

TOTAL PRICE $ 54,871

180

ATTACHMENT A

SCOPE OF WORK NEW LANDFILL GAS PROBES AND MONITORING WELLS CEQA ANALYSIS

Task 1: Project Initiation

Subtask 1.1: Kickoff Meeting Ascent’s project manager and project director will attend one project kickoff meeting with MCRWMA staff and consultants (as appropriate), as well as project engineers, to discuss the status of project development and design, identify/confirm project objectives, discuss any areas of controversy and potential strategies, discuss key issues and sensitivities, and establish communication/review protocols. The general project schedule will also be discussed. Ascent will work with MCRWMA staff to establish the agenda. The kickoff meeting will provide Ascent an opportunity to present examples of previous addenda, to inquire further about the status of the project (including initial siting of proposed facilities) and the process, and to receive any new or additional studies or documents.

Deliverables Kickoff meeting agenda and notes (electronic submittal – MS Word)

Subtask 1.2: Review Existing Information Ascent will review available documents and information received to date, plus any new information provided at the project kickoff meeting. This may include ongoing biological monitoring data collected by MCRWMA at the landfill, as well as design considerations by the engineering team specific to the additional property. Ascent will prepare a memo for MCRWMA documenting any additional information/considerations that will be needed to describe the proposed project and its potential effects, as well as design considerations that may reduce potential environmental impacts.

Memorandum summarizing review of existing documentation and Deliverable identifying areas where additional study may be necessary (electronic submittal – PDF)

Subtask 1.3: Design Team Meetings Ascent will participate in up to four meetings with MCRWMA staff and project engineers regarding the initial project design and schedule. It is assumed that all of these meetings would be conference calls.

Subtask 1.4: Prepare Project Description

Attachment A Ascent Environmental, Inc. July 14, 2020 181 An accurate and complete project description is central to CEQA defensibility and sets the stage for the environmental analysis. Ascent will use project information received from MCRWMA and the project engineers to prepare a project description that meets CEQA requirements as early in the process as possible to confirm that all elements of the project are appropriately described. We will work with MCRWMA staff to fill in any gaps that may be identified. The project description will identify project objectives; project characteristics, including permanent project features and operational details; construction information such as phasing, timing (to the degree known), and equipment use; and a list of discretionary approvals expected to be needed for project implementation. A draft project description will be submitted to MCRWMA for review and comment. Comments will be incorporated and a “final” project description will be prepared for use in the environmental analysis.

Administrative draft project description (electronic submittal – MS Word) Deliverables Project description for use in CEQA document (electronic submittal – MS Word)

Task 2: EIR Addendum Since certification of the Highway 59 Valley Fill EIR in 2016, MCRWMA has determined that the installation of additional LFG probes and monitoring wells within recently acquired property, the acquisition of which was addressed in the Valley Fill EIR, is necessary. As a result, and taking into consideration the limited land disturbance necessary for the installation of an LFG probe and subsequent monitoring well, this likely constitutes a minor change to the previously approved project and certified EIR. Therefore, preparation of an addendum to address the minor changes is considered appropriate.

At MCRWMA’s direction, Ascent will prepare an addendum to the previously certified EIR, pursuant to Section 15164 of the CEQA Guidelines. The addendum will be prepared consistent with the following outline:

1. Introduction a. Background and Action Triggering the Addendum b. CEQA Guidelines Regarding an Addendum to an EIR 2. Description of the Proposed Modifications to the Previously Approved Project 3. Environmental Consequences of the Proposed Modifications a. Explanation of the Checklist Evaluation Categories b. Explanation of Discussion, Mitigation Measures, and Conclusion Sections c. Impact Evaluation of the Proposed Modifications d. Conclusions Regarding the Environmental Analysis of the Proposed Modifications 4. References

Because of the type and scale of the proposed modifications, Ascent can prepare the addendum in two different ways:

1. Following a modified checklist format, similar to Appendix G of the CEQA Guidelines, for all potential CEQA issue areas.

Attachment A Ascent Environmental, Inc. July 14, 2020 182 2. Providing a general discussion of the issue areas for which a more detailed evaluation of the proposed modifications is not required (with evidence in support of that determination). This approach would then include a more detailed analysis of up to three issue areas. Based on our initial evaluation, the analysis of biological and cultural resources, as well as of hydrology and water quality, would be recommended.

Ascent can provide examples of both approaches to MCRWMA as part of Subtask 1.1. In either case, the addendum will incorporate the following information:

 Specify page number(s) where the impact was analyzed in the Highway 59 Landfill Valley Fill EIR.

 Answer the question of whether the proposed action results in any new significant impacts or substantially more severe impacts relative to those identified in the Highway 59 Landfill Valley Fill EIR.

 Answer the question of whether any new circumstances have arisen since certification of the Highway 59 Landfill Valley Fill EIR that would result in new significant impacts or substantially more severe impacts.

 Identify whether there is any new information of substantial importance that is available since certification of the Highway 59 Landfill Valley Fill EIR that would require an update to the EIR, such as mitigation measures or alternatives previously found not to be feasible in the Highway 59 Landfill Valley Fill EIR, which would in fact be feasible and would substantially reduce one or more significant effects of the project.

 Identify whether any mitigation measures in the Highway 59 Landfill Valley Fill EIR would also apply to significant impacts from the proposed modifications.

New significant environmental effects, substantially more severe environmental effects, or other criteria requiring preparation of a subsequent or supplemental EIR are not anticipated to be triggered. It is anticipated that the combined analysis in the Highway 59 Valley Fill EIR and addendum will be sufficient to support the approval of the proposed LFG probes and monitoring wells.

Ascent will submit an electronic draft of the addendum to MCRWMA for review and will prepare a final addendum based on comments received on the draft. Up to 10 hard copies of the final addendum will be provided, along with electronic files.

The following discussion is a more detailed description of the analysis to be conducted with respect to biological and cultural resources.

Biological Resources Ascent will conduct updated record searches of the California Natural Diversity Database, California Native Plant Society Rare Plant Program database, U.S. Fish and Wildlife Service’s Information for Planning and Conservation (IPaC) database, and National Wetland Inventory. A site reconnaissance survey will be conducted to map land cover types in the study area. The potential presence of state or federally protected wetlands will also be mapped at a reconnaissance level, but a formal aquatic resources delineation will not be conducted. It is not expected that riparian habitat is present based on aerial

Attachment A Ascent Environmental, Inc. July 14, 2020 183 photography of the area. The predominant land cover type in the study area is assumed to be grasslands, which may support vernal pools and associated species. Based on preliminary review, the study area may contain federally designated critical habitat for several species.

The technical analysis will include an assessment of the suitability of the study area to support federally and state listed species, as well as species afforded protection under CEQA. It is anticipated that wildlife species to be assessed will include California tiger salamander (Ambystoma californiense), western spadefoot (Spea hammondii), Swainson’s hawk (Buteo swainsoni), tricolored blackbird (Agelaius tricolor), burrowing owl (Athene cunicularia), vernal pool fairy shrimp (Branchinecta lynchi), Conservancy fairy shrimp (Branchinecta conservatio), vernal pool tadpole shrimp (Lepidurus packardi), valley elderberry longhorn beetle (Desmocerus californicus dimorphus), and San Joaquin kit fox (Vulpes macrotis mutica). Special-status plants will also be evaluated for their potential to occur based on species range, known occurrences, and land cover types in the study area.

Ascent will summarize the potential for special-status species and other sensitive habitats to occur in the study area. A map of designated critical habitat will be included. We will review and summarize existing information, including the analysis in the Highway 59 Landfill Valley Fill EIR and any subsequent biological monitoring conducted by MCRWMA that is relevant to biological resources. An overview of federal, state, and local laws and regulations pertaining to biological resources and the adopted mitigation measures from the previously certified EIR will also be included. Although not anticipated at this time, if additional resources are identified, Ascent will coordinate with MCRWMA to determine whether additional/modified measures to avoid or minimize impacts to sensitive biological resources are necessary.

Cultural Resources Natural Investigations, as a subconsultant to Ascent, will conduct a California Historical Resources Information System (CHRIS) records search within a 0.25-mile radius of the proposed modifications at the Central California Information Center (CCIC) at the California State University, Stanislaus in Turlock. The CCIC houses cultural resources records, and the primary purpose of the CHRIS records search is to identify any previously recorded cultural resources known to exist within or adjacent to the project area. In addition to the archaeological inventory records and reports, an examination will be made of historic maps, the National Register of Historic Places, the California Inventory of Historical Resources, and the listing of California Historical Landmarks. The records search will also reveal the nature and extent of any cultural resources work previously conducted within the project area.

Natural Investigations will assess the potential for paleontological resources within the project area. This assessment would include a review of geologic maps and a records search of the online database maintained by the University of California Museum of Paleontology at Berkeley (UCMP).

Additionally, Natural Investigations will contact the Native American Heritage Commission (NAHC) for a review of their Sacred Lands File. The NAHC will determine if any NAHC-listed Native American sacred lands are located within or adjacent to the project area. In addition, the NAHC will provide a list of Native American contacts for the project that they believe should be contacted for additional information. At MCRWMA’s direction, Natural Investigations will submit a project information letter and location map to each individual/Tribe/organization on the NAHC list. As consultation under Assembly Bill (AB) 52 is not required when preparing an addendum, it is assumed that MCRWMA will not initiate formal consultation

Attachment A Ascent Environmental, Inc. July 14, 2020 184 under CEQA with tribal representatives. However, if MCRWMA elects to consult with any tribal representatives, Ascent and Natural Investigations can assist MCRWMA staff, based on our experience with other projects in the region.

Upon completion of the CHRIS, UCMP, and NAHC records search, Natural Investigations will perform an intensive pedestrian survey of the project area. Archaeologists will conduct the survey utilizing pedestrian transects spaced at maximum intervals of 15 meters, covering all portions of the project area. Areas which are inaccessible due to dense vegetation, unstable geologic conditions, or other obstructions will be surveyed at a reconnaissance level, typically at 20- to 40-meter transects. For the purposes of this scope and cost estimate, Natural Investigations assumes that the cultural resources survey will be negative for prehistoric and historic resources (i.e., no previously unrecorded cultural resources will be encountered and no previously recorded cultural resources will require updates). No testing or excavation will be conducted, nor will any artifacts, samples, or specimens be collected during the survey.

Upon completion of the literature review, UCMP and NAHC search, and pedestrian survey, Natural Investigations will prepare a technical report summarizing the potential for cultural resources to be encountered during construction of the proposed modifications. The technical report will document the results of the literature review, UCMP and NAHC records search, Native American outreach, and field survey, as well as provide management recommendations for resources within or near the project area. The report will meet the Secretary of the Interior’s Standards and Guidelines and will follow Archaeological Resource Management Reports: Recommended Contents and Format Guidelines. Ascent will use the Natural Investigations report in preparation of the addendum and as evidence in support of the addendum determination.

Draft EIR Addendum (electronic submittal – MS Word and PDF) Deliverables Final EIR Addendum (up to 10 hard copies and electronic submittal – MS Word and PDF)

Task 3: Project Management Ascent’s project manager, with oversight from the project director, will devote reasonable effort each month (4-month schedule assumed) to ensure an efficient and timely process for project execution. Typical tasks include cost and schedule tracking, budget management (including accrual reporting), and ongoing phone calls and email communication with MCRWMA staff.

Attachment A Ascent Environmental, Inc. July 14, 2020 185 ATTACHMENT B

COST ESTIMATE NEW LANDFILL GAS PROBES AND MONITORING WELLS CEQA ANALYSIS

The estimated cost to complete Tasks 1, 2, and 3, as described above, is $54,871. The following spreadsheet details the projected hours required by staff type. The billing rates reflected in the attached spreadsheet are presented in accordance with Ascent’s 2020 standard rates.

Attachment B Ascent Environmental, Inc. July 14, 2020 186 PH: 209.723.4481 FAX: 209.384.3109 7040 N. Highway 59 Merced, CA 95348

AGREEMENT: ______

AGREEMENT BETWEEN MERCED COUNTY REGIONAL WASTE MANAGEMENT AUTHORITY AND ASCENT ENVIRONMENTAL INC. FOR CONSULTANT TO PREPARE ENVIRONMENTAL DOCUMENTS

THIS AGREEMENT is made and entered into this ______day of ______2020, by and between the Merced County Regional Waste Management Authority, a California joint powers authority within the meaning of Government Code § 6500 et seq (hereinafter referred to as "MCRWMA"), and Ascent Environmental Inc., (hereinafter referred to as “CONSULTANT”).

It is agreed between the parties that:

Section One – Scope of Services

CONSULTANT shall provide special services which consist of development of an addendum to the Valley Fill EIR to construct LFG Probes and Monitoring Wells. CONSULTANT is specially experienced to perform such services due to the fact Ascent prepared the original Valley Fill EIR.

CONSULTANT agrees to perform all work necessary to complete, in a manner satisfactory to MCRWMA, those items described in ATTACHMENT A, SCOPE OF WORK, NEW LANDFILL GAS PROBES AND MONITORING WELLS CEQA ANALYSIS, which is incorporated herein by this reference as if set forth in full.

CONSULTANT shall provide expertise for compliance with the California Environmental Quality Act (CEQA) in conformance with Public Resources Code Section 21000 et seq., and the most current version of the CEQA Guidelines and amendments as adopted by the California Natural Resources Agency. All services in accordance with the terms and conditions stated herein, and any specifically referenced attachments hereto.

MCRWMA reserves the right to utilize other consultants currently under contract to address the Air Quality Section, Biological Resources Section and legal review of the EIR process. It shall be the MCRWMA’s responsibility to coordinate the work products of these outside consultants with CONSULTANT.

Section Two – Term

The term of this Agreement shall commence on the ______day of ______2020, and continue until the 31st day of December 2021, unless sooner terminated in accordance with the sections entitled “TERMINATION FOR CONVENIENCE” or “TERMINATION FOR CAUSE” as specified elsewhere in this Agreement.

MCRWMA Agreement ______Page 1 of 9

187 Section Three – Compensation

MCRWMA agrees to pay CONSULTANT a Total Contract Price of Seventy-five Thousand Dollars and No/100 Cents ($75,000) for all of CONSULTANT’s services to be provided herein, as are more specifically set forth in Attachment B, "PRICE PROPOSAL, Highway 59 Landfill Valley Fill EIR Addendum for LFG Probes and Monitoring Wells". The Total Contract Price detailed in ATTACHMENT B shall include all of MCRWMA’s compensation to CONSULTANT, including reimbursement for all expenses incurred by CONSULTANT in the performance of this initial phase of the Agreement. No other fees or expenses of any kind shall be paid to CONSULTANT in addition to the Total Contract Price. In no event shall the total services to be provided hereunder exceed the Total Contract Price.

Any and/or all payments made under this Agreement shall be paid by check, payable to the order of the CONSULTANT and be mailed or delivered to CONSULTANT at:

Ascent Environmental, Inc. 455 Capitol Mall, Suite 300 Sacramento, CA 95814

CONSULTANT may request that MCRWMA mail the check to CONSULTANT to such other address as CONSULTANT may from time to time designate to MCRWMA. Such request must be made in writing in accordance with the procedures as outlined under Section 6 “NOTICES”.

Section Four – Terms of Payment

Payment shall be only for full and complete satisfactory performance of the services required to be provided herein and as set forth under Section One, Scope of Services. Payment shall be made in the following manner:

CONSULTANT shall submit monthly itemized invoices, or alternate documentation as deemed appropriate in advance by MCRWMA, for services it has provided and for the amount owed under this Agreement. In addition to the invoices submitted by the CONSULTANT for payment, CONSULTANT must complete and submit in the first itemized invoice to the MCRWMA, Form W-9, “A Request for Taxpayer Identification Number and Certification”. Both invoices and the W-9 form shall be forwarded to the MCRWMA at the MCRWMA address indicated under Section 6 “NOTICES” of this Agreement.

Each invoice or approved alternate documentation must:

4.1 Detail by task the service performed by CONSULTANT following format of Cost Estimate (ATTACHMENT B). 4.2 Detail the labor cost (number of hours) attributed to each task. 4.3 Show the cumulative cost for all tasks performed to date. 4.4 Provide any additional information and data requested by MCRWMA as deemed necessary by MCRWMA to properly evaluate or process CONSULTANT'S claim.

Upon approval by MCRWMA, the fee due hereunder shall be paid to CONSULTANT within thirty (30) days following receipt of a proper invoice.

Section Five – No Payment for Services Provided Following Expiration or Termination of Agreement

MCRWMA Agreement ______Page 2 of 9

188 CONSULTANT shall have no claim against MCRWMA for payment of any kind whatsoever for any services provided by CONSULTANT which were provided after the expiration or termination of this Agreement.

Section Six – Notices

All notices, requests, demands or other communications under this Agreement shall be in writing. Notice shall be sufficiently given for all purposes as follows:

6.1 Personal Delivery. When personally delivered to the recipient, notice is effective upon delivery.

6.2 First Class Mail. When mailed first class to the last address of the recipient known to the party giving notice, notice is effective three mail delivery days after deposit in a United States Postal Service office or mailbox.

6.3 Certified Mail. When mailed by certified mail, return receipt requested, notice is effective upon receipt, if delivery is confirmed by a return receipt. 6.4 Overnight Delivery. When delivered by an overnight delivery service, charges prepaid or charged to the sender’s account, notice is effective on delivery, if delivery is confirmed by the delivery service.

6.5 Electronic Transmission. When sent by email in pdf format to the last email address of the recipient known to the party giving notice, notice is effective upon receipt, provided that: a) a duplicate copy of the notice is promptly given by first class mail or certified mail or by overnight delivery, or b) the receiving party delivers a written confirmation of receipt. Any notice given by email shall be deemed received on the next business day if received after 5:00 P.M. (recipient’s time) or on a non-business day.

Any correctly addressed notice that is refused, unclaimed or undeliverable because of an act or omission of the party to be notified shall be deemed effective as of the first date that the notice was refused, unclaimed or deemed undeliverable by the postal authorities, messengers or overnight delivery service.

Information for notice to the parties to this Agreement at the time of endorsement of this Agreement is as follows:

AUTHORITY CONSULTANT MCRWMA Ascent Environmental Inc. 7040 N. Highway 59 455 Capitol Mall, Suite 300 Merced, Ca 95348 Sacramento, CA 95814 [email protected] [email protected] With Copy to:

AUTHORITY COUNSEL Haden Law Office 2241 N. St. Merced, CA 95340-3614 [email protected] MCRWMA Agreement ______Page 3 of 9

189

Any party may change its address by giving the other party notice of the change in any manner permitted by this Agreement.

Section Seven – Termination for Convenience

This Agreement, notwithstanding anything to the contrary herein above or hereinafter set forth, may be terminated by MCRWMA at any time without cause or legal excuse by providing the other party with thirty (30) calendar days written notice of such termination.

Upon the effective date of termination, MCRWMA shall have no further liability to CONSULTANT except for payment for actual services rendered during the performance hereunder. Such liability is limited to the time specified in said notice and for services not previously reimbursed by MCRWMA. Such liability is further limited to the extent such costs are actual, necessary, reasonable, and verifiable costs and have been incurred by CONSULTANT prior to, and in connection with, discontinuing the work hereunder.

Section Eight – Termination for Cause

If the CONSULTANT shall fail to comply with any of CONSULTANT’s obligations under this Agreement or otherwise breach this Agreement, MCRWMA may, in addition to any other remedies it may have, terminate this Agreement for cause by giving thirty (30) calendar days written notice to CONSULTANT in the manner set forth under Section Six, "NOTICES". In the event of any proceedings by or against the CONSULTANT, i.e., bankruptcy, insolvency, appointment of a receiver or trustee, or an assignment for the benefit of creditors, MCRWMA may exercise its right of cancellation under this section.

Section Nine – Disposition of Work Upon Termination

In the event of termination, all finished or unfinished documents and other materials, if any, at the option of MCRWMA, and to the extent permitted by law, shall become the property of MCRWMA and CONSULTANT shall be entitled to receive compensation for any work completed prior to receipt of the notice of termination. Neither party, however, shall be relieved of liability to the other for damages sustained by either party by virtue of any breach of this Agreement, regardless of whether this Agreement was terminated at will or for cause. MCRWMA may withhold any payments not yet made to CONSULTANT for the purpose of setoff until such time as the exact amount of damages due to MCRWMA from CONSULTANT is determined.

Section 10 – Modification of Agreement

Notwithstanding any of the provisions of this Agreement, the parties may agree to amend this Agreement. No alteration or variation of the terms of this Agreement shall be valid unless made in writing and signed by the parties hereto. No oral understanding or agreement not incorporated herein shall be binding on any of the parties hereto.

Section 11 – Insurance

CONTRACTOR shall, for the duration of this Agreement, purchase and maintain insurance to protect against loss resulting from the performance of its duties under the Agreement. Insurance is to be placed with admitted insurers rated by A.M. Best Co. as A: VII or higher. Lower rated, or approved but not MCRWMA Agreement ______Page 4 of 9

190 admitted insurers, may be accepted if prior approval is given by the MCRWMA Risk Manager. Said insurance coverage shall comply with the following minimum requirements:

A. General Liability: $2,000,000 combined single limit per occurrence for bodily injury, personal injury, and property damage. If a Commercial General Liability or any other policy with a general aggregate limit is used, either the aggregate limit shall be endorsed to apply separately to this project or the aggregate limit shall be twice the above occurrence limit.

B. Automobile Liability: $2,000,000 combined single limit per accident for bodily injury and property damage.

C. Professional Liability or Errors and Omissions Insurance: $1,000,000 per occurrence and $2,000,000 annual aggregate.

CONTRACTOR shall maintain worker’s compensation coverage sufficient to comply with statutory requirements and limits as required by the California Labor Code, including Employers’ Liability limits of $1,000,000 per accident. The policy shall be endorsed to waive the insurer’s subrogation rights against MCRWMA.

Original certificates of such insurance shall be filed with MCRWMA. Said certificates shall evidence coverage through the term of this Agreement and shall name the MCRWMA as an additional insured. Modifications to insurance requirements must be approved by MCRWMA in writing. CONTRACTOR is responsible for providing MCRWMA updated insurance documents annually.

Section 12 - Changes to Scope

MCRWMA may at any time, and upon a minimum of ten (10) days written notice, modify the scope of basic services to be provided under this Agreement. CONSULTANT shall, upon receipt of said notice, determine the impact on both time and compensation of such change in scope and notify MCRWMA in writing. Upon agreement between MCRWMA and CONSULTANT as to the extent of said impacts on time and compensation, an amendment to this Agreement shall be prepared describing such changes. Execution of the amendment by MCRWMA and CONSULTANT shall constitute the CONSULTANT's notice to proceed with the changed scope.

Section 13 - Indemnification

CONSULTANT shall indemnify and defend MCRWMA and hold it harmless from and against any and all claims, demands, or liability arising out of or in any way connected with the performance of this Agreement. Indemnity shall apply to any acts, omissions, willful misconduct, or negligent conduct, whether active or passive, unless liability is caused solely by the negligent or willful misconduct of MCRWMA. CONSULTANT shall, on request and at its own expense, defend any action, suit, or proceeding arising hereunder and shall reimburse and pay MCRWMA for any loss, cost, damage, or expense, including attorney's fees suffered by it hereunder.

Section 14 – Independent Contractor

MCRWMA and CONSULTANT agree that CONSULTANT is an independent contractor and that no employer-employee relationship exists or is created between MCRWMA and CONSULTANT or any of its MCRWMA Agreement ______Page 5 of 9

191 subcontractors. CONSULTANT shall be solely responsible for the conduct and control of the work performed under this Agreement. CONSULTANT shall be free to render services to others during the term of this Agreement so long as such activities do not interfere with or diminish CONSULTANT's ability to fulfill the obligations established herein to MCRWMA.

Section 15 – Records, Information, and Reports

CONSULTANT shall maintain full and accurate records with respect to all matters covered under this Agreement. To the extent permitted by law, MCRWMA shall have free access at all proper times or until the expiration of four (4) years after the furnishing of services to such records, and the right to examine and audit the same and to make transcripts therefrom, and to inspect all data, documents, proceedings, and activities pertaining to this Agreement.

To the extent permitted by law, CONSULTANT shall furnish MCRWMA such periodic reports as MCRWMA may request pertaining to the work or services undertaken pursuant to this Agreement. The costs and obligations incurred or to be incurred in connection shall be borne by the CONSULTANT.

Consultant shall provide MCRWMA all final reports and documents in hard copy, MSWord, MS Excel, pdf and AutoCAD as appropriate.

Section 16 – Ownership of Documents

To the extent permitted by law, all technical data, evaluations, plans, specifications, reports, documents, or other work products developed by CONSULTANT hereunder are the exclusive property of MCRWMA and upon request of MCRWMA shall be delivered to MCRWMA upon completion of the services authorized hereunder. In the event of termination, all finished or unfinished documents and other materials, if any, at the option of MCRWMA, and to the extent permitted by law, shall become the property of the MCRWMA. CONSULTANT may retain copies thereof for its files and internal use.

Any publication of information directly derived from work performed or data obtained in connection with services rendered under this Agreement must be first approved by MCRWMA.

Section 17– Responsibility of CONSULTANT

By executing this Agreement, CONSULTANT warrants to MCRWMA that it possesses, or will arrange to secure from others, all necessary professional services and resources and facilities to provide MCRWMA with the services contemplated under this Agreement. CONSULTANT further warrants that it will follow the best current, generally accepted practice of the profession to make findings, render opinions, prepare factual presentations, and provide professional advice and recommendations regarding the project for which services are rendered under this Agreement.

Section 18 - Responsibility of MCRWMA

To the extent appropriate to the project contemplated by this Agreement, MCRWMA shall:

A. Assist CONSULTANT by placing at its disposal all available information pertinent to the project.

MCRWMA Agreement ______Page 6 of 9

192 B. Examine all studies, reports, proposals and other documents presented by CONSULTANT, and render verbally or in writing, as may be appropriate, decisions pertaining thereto within a reasonable time so as not to delay the services of CONSULTANT.

Section 19 – Laws, License, Permits, and Regulations

CONSULTANT shall possess and maintain all necessary licenses, permits, certificates and credentials required by the laws of the United States, the State of California, MCRWMA of Merced and all other appropriate governmental agencies, including any certification and credentials required by MCRWMA. Failure to maintain the licenses, permits, certificates, and credentials shall be deemed a breach of this Agreement and constitutes grounds for the termination of this Agreement by MCRWMA.

Section 20 – Waiver

No waiver by either party of any default, breach or condition precedent shall be valid unless made in writing and signed by the parties hereto. No oral waiver of any default, breach or condition precedent shall be binding on any of the parties hereto. Waiver by either party of any default, breach or condition precedent shall not be construed as a waiver of any other default, breach or condition precedent, or any other right hereunder.

In no event shall the making, by the MCRWMA, of any payment to CONSULTANT constitute, or be construed as, a waiver by the MCRWMA of any breach of covenant, or any default which may then exist, on the part of CONSULTANT. The making of any such payment by the MCRWMA while any such breach or default shall exist, shall not be construed as acceptance of substandard or careless work or as relieving CONSULTANT from its full obligations under this Agreement.

Section 21 – Dispute Resolution, Attorney Fees, Jurisdiction, and Venue

In any action, suit or proceeding arising out of or in any way connected with the performance of this Agreement, the prevailing party shall be entitled to recover reasonable attorney's fees and costs. Notwithstanding any other provision of this Agreement, any disputes concerning any question of fact or law relating to this Agreement or any litigation or arbitration arising out of this Agreement shall be interpreted pursuant to California law, subject to the jurisdiction of the Superior Court of California, and venued in the County of Merced. CONSULTANT expressly waives federal jurisdiction.

Section 22 - Compliance with Laws, Rules, and Regulations

All services performed by CONSULTANT pursuant to this Agreement shall be undertaken with usual and customary professional care to be performed in accordance and full compliance with all applicable federal, state, and county and city statutes, and any rules or regulations promulgated thereunder.

Section 23 – Successors and Assigns

This Agreement shall be binding upon and inure to the benefit of any successors or assigns.

CONSULTANT shall not subcontract or assign this Agreement, or any part thereof, or interest therein, directly or indirectly, voluntarily or involuntarily, to any person without obtaining the prior written consent by MCRWMA. CONSULTANT remains legally responsible for the performance of all contract terms

MCRWMA Agreement ______Page 7 of 9

193 including work performed by third parties under subcontracts. Any subcontracting will be subject to all applicable provisions of this Agreement. CONSULTANT shall be held responsible by MCRWMA for the performance of any subcontractor whether approved by MCRWMA or not.

Section 24 – Conflict of Interest

CONSULTANT covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance of this Agreement. CONSULTANT shall ensure that no conflict of interest exists between its officers, employees, or subcontractors, and the MCRWMA. CONSULTANT shall ensure that no MCRWMA officer or employee, in a position in the MCRWMA that enables them to influence this Agreement, will have any direct or indirect financial interest resulting from this Agreement. CONSULANT shall ensure that no MCRWMA employee shall have any relationship to the CONSULTANT or officer or employee of the CONSULTANT, nor that any such person will be employed by CONSULTANT in the performance of this Agreement without immediate divulgence or such fact to the MCRWMA.

Section 25 – Equal Employment Opportunity

CONSULTANT shall comply with U.S. Executive Order 11246 entitled, "Equal Employment Opportunity", as amended by U.S. Executive Order 11375, and as supplemented in U.S. Department of Labor Regulations (41 CFR Part 60).

Section 26 - Captions

The captions of each paragraph in this Agreement are inserted as a matter of convenience and reference only, and in no way define, limit, or describe the scope or intent of this Agreement or in any way affect it.

Section 27 - Severability

If a court of competent jurisdiction holds any provision of this Agreement to be illegal, unenforceable or invalid, in whole or in part, for any reason, the validity and enforceability of the remaining provisions, or portion of them, will not be affected.

Section 28 – Counterparts

This Agreement may be executed in counterparts, each of which shall be deemed an original.

Section 29 - Integration

This Agreement and any attachments hereto represent the entire understanding of MCRWMA and CONSULTANT as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. This Agreement may not be modified or altered except in writing signed by MCRWMA and CONSULTANT.

MCRWMA Agreement ______Page 8 of 9

194 IN WITNESS WHEREOF, the parties hereto have made and executed this Agreement on the day and year first above written.

MCRWMA: Ascent Environmental, Inc:

By ______By ______Stacie Guzman, Executive Director Sydney Coatsworth, AICP, Principal

APPROVED AS TO FORM:

By ______General Counsel Haden Law Office

MCRWMA Agreement ______Page 9 of 9

195 196 197 198 199 ITEM 19

200 PH: 209.723.4481 FAX: 209.384.3109 7040 N. Highway 59 Merced, CA 95348

ITEM 19

DATE: August 14, 2020

TO: Merced County Regional Waste Management Authority

FROM: Eric Zetz, Director

RE: ACTION: Discussion and direction on Flow Control Implementation

SUMMARY

The Merced County Regional Waste Management Authority (MCRWMA) Joint Powers Agreement (JPA) establishes flow control for solid waste, recycling and plant (otherwise known as green waste) materials generated within the service area – meaning, all such material must be directed to one of the Regional Waste Management Authority landfill sites, Billy Wright landfill or Highway 59 landfill. Currently, all seven (7) jurisdictions are bringing solid waste to MCRWMA facilities. However, the flow control requirement for recyclables and green waste is currently not being enforced.

As the Authority is preparing for SB 1383 compliance involving investments in infrastructure needed to process diverted materials, staff is seeking board direction on the future enforcement of flow control for all materials.

REQUESTED ACTION

b. Implement the flow control requirement for all waste/recycle material streams (i.e. solid waste, recycling and plant material) for all jurisdictions.

BACKGROUND

The Joint Powers Agreement establishes flow control on solid waste, recycling and plant materials generated within the service area. Within the service area, jurisdictions are required to direct their solid waste, recycling and plant materials to the Merced County Regional Waste Management Authority at one of their two landfill sites: Billy Wright landfill or Highway 59 landfill. When the solid waste municipal bond was issued, it was based upon the Authority’s commitment that it exercises flow control in the service area. Should the Authority not have flow control, then the bond covenants may be deemed to be in breach of the contract, and the bonds may be either downgraded or defaulted (reference attached memo by Robert Haden, June 14, 2013).

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The State of California has increased diversion mandates upon all jurisdictions within the state. This increased diversion mandate has required jurisdictions to implement a program to divert materials away from landfills at ever increasing diversion rates. The increased costs associated with creating a program, such as a blue bin recycle material diversion program, is one of the reasons for non- participation by a jurisdiction. Additionally, the added scrutiny to contamination and increased costs for processing, have turned recyclable materials and plant materials from a revenue to an expenditure. For example, the Authority’s current contract with its hauler for the transportation and processing of recyclables is anticipating a three to four times increase in the cost associated with processing of the materials from the Authority. The Authority passes these costs onto the jurisdiction who brought the material to the Authority; and the charge the Authority adds to this material is for loading the material from our site to the truck for transport to the processing center. Therefore, the recyclable material is a pass-through cost that does not pay towards the solid waste revenue bond at this time.

Staff has assessed the flow control of the waste/recycle material streams: solid waste, recycle and plant materials. To date, not all jurisdictions are participating in the established flow control of solid waste, recycling and plant materials generated in the service area.

The table below identifies the jurisdiction’ participation to the Authority:

As the Authority prepares for investments in infrastructure related to SB 1383 (organics diversion) compliance, reliable projections of green waste are needed. If the Board is inclined to relax flow control requirements for the recycling and plant waste materials, such infrastructure investments to handle that material at the two RWA landfill sites may not be warranted.

Additionally, there currently is not a policy outlining the circumstances under which the relaxation of the flow control requirement for recyclables and green waste may occur. Staff is seeking board direction to develop a policy document that will either establish a process by which all member agencies may seek alternative arrangements for their recycling and plant material outside of RWA, or that will enforce the flow control requirement for all waste streams as established in the JPA.

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Implications for RWA Budget

Garbage or solid waste material streams: Currently all jurisdictions participate in bringing their garbage or municipal solid waste (MSW) to one of the two Authority landfill sites: Billy Wright landfill or Highway 59 landfill. The tip fee revenue from MSW generates the funds necessary to make the Solid Waste Bond payment as agreed to by the jurisdictions in the JPA.

Recycle (i.e. blue bin) material streams: Currently only three jurisdictions (City of Los Banos, City of Merced & a portion of the County of Merced) participate in bringing their recycle material to one of the two Authority landfill sites: Billy Wright landfill or Highway 59 landfill. The cost for the service to transport and process the recycle materials received at the Authority is passed on to the participating jurisdiction, for the recycle material brought into the Authority by the respective jurisdiction. The Authority does not receive a revenue from this recycle material stream, since the revenues are passed onto the participating jurisdiction, which are applied to the jurisdiction’s charges for this service. Thus, at this time, there are no impacts to the Authority’s budget if recycle material streams are not brought to the Authority.

Plant or organic (i.e. green bin) material streams: Currently only three jurisdictions (City of Los Banos, City of Merced & a portion of the County of Merced) participate in bringing their plant or organic material to one of the two Authority landfill sites: Billy Wright landfill or Highway 59 landfill. The cost for the service to process the plant or organic materials received at the Authority is passed on to the participating jurisdiction, for the green material brought into the Authority by the respective jurisdiction. The byproduct of the material is compost, which is then sold to cover the operational costs to create the compost. Additionally, the Authority does not have a permit at either of its facilities to receive food waste material streams, therefore the jurisdictions will need to look elsewhere to comply with Assembly Bill 1826. At this time, there are no impacts to the Authority’s budget if plant or organic material streams are not brought to the Authority.

If you have any questions regarding this staff report, please contact Eric Zetz at 209.723.4481 x221 or at [email protected].

PAST ACTIONS TAKEN

January 19, 2006: R3 Consulting Group, Inc. prepared an evaluation of the revenue requirements and funding options available for the purposes of establishing a stabilized rate structure to the Merced County Association of Governments Solid Waste Policy Board.

June 14, 2013: Robert Haden gave a legal opinion on flow control where it was said that the Authority has flow control over all materials (solid waste, recycle, and plant material) to facilitate the bond payment; this opinion is attached.

November 2, 2015: SCS Engineers provided a Pro Forma Model Authority Long Term Operations Final Report and no changes were made to the rates.

August 12, 2020: the Merced County Technical Review Board recommended for option “a” directing staff to draft a policy to relax the flow control requirement for diverted material (recycling and plant material green) for all jurisdictions to be brought back to the Board for discussion and adoption at a future meeting.

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REQUESTED ACTION

b. Implement the flow control requirement for all waste/recycle material streams (i.e. solid waste, recycling and plant material) for all jurisdictions.

ATTACHMENTS

Exhibit A: Merced County Solid Waste Regional Agency Economic Analysis Report, Jan 19, 2006; Exhibit B: Flow Control Opinion, Robert Haden, June 14, 2013; Exhibit C: SCS Pro Forma Model Authority Long Term Operations Final Report, Nov 2, 2015.

204 Merced County Solid Waste Regional

Agency Economic Analysis Report

Evaluation of the Revenue Requirements and Funding Options Available for the Purpose of Establishing a Stabilized Rate Structure

Prepared for the

Merced County Association of Governments Solid Waste Policy Board

January 19, 2006

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Report Introduction ...... 1-1 Table of Project Objectives...... 1-1 Contents Summary of Findings ...... 1-1 Background...... 1-3 Approach ...... 1-5 Limitations...... 1-6 Financing Options...... 1-6 Review of Differential Landfill Tip Fee Rate Structure And Night Operations...... 1-9 Review of Operating Reviews...... 1-11 Review of Trust Accounts ...... 1-11

Appendix A ...... A-1

TOC - i

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Introduction Final Report

R3 Consulting Group (“R3”) was retained by Merced County Regional Agency (“County”) to perform an economic analysis of revenue requirements and funding options to enable the County to establish a stabilized tip fee rate structure at the County operated landfills.

Project Objectives

The primary objectives of this project include the following: Evaluate short and medium term capital and operating expenses; Identify short and medium term revenue requirements; Analyze funding options and recommend a financing mechanism; and Recommend a rate adjustment schedule that: o Stabilizes long-term rate increases; o Minimizes year-to-year rate fluctuations; o Meets the net revenue requirements; and o Maintains adequate cash reserves.

Summary of Findings

Required Tip Fee Rate Adjustments The County’s current landfill rates are generally sufficient to cover existing operating expenses. However, significant capital expenses are projected over the planning period, Fiscal Year (“FY”) 05-06 through FY 14-15, that will require substantial rate increases in the near term. While the County currently has approximately $8,000,000 in available reserves,1 Capital Equipment and Capital Project expenses of more than $20,000,000 and $42,000,000 respectively are projected over the planning period. To cover these expenses and allow for moderating required rate increases, we recommend that the County continue its practice of leasing Capital Equipment and issue bonds to cover the Capital Project Expenses. There are several factors that materially affect the rate setting requirements, including: • The amount and timing of the Capital Project expenses;

1 FYE 04-05, not including current Trust Fund Balances. 1 - 1

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Final Report • The amount of closure and post-closure costs paid through the Closure/Post Closure Trust Funds; • The amount of Capital Projects funded through bonds; and • The bond payback period. These factors are discussed in more detail in the Financing Options Section of this report. However, by utilizing the Capital Projects schedule prepared by the County, and assuming that all Capital Projects are funded by the issuance of two series of bonds in the amounts of $21,200,000 in FY 05-06 and $12,000,000 in FY 09-10, each of which will be repaid over 10 year periods, the following rate increases are projected to meet operating and debt service requirements while maintaining a minimum available reserve balance of approximately $6,000,000 and an annual Debt Service Coverage Ratio of 125 percent.

Proposed Tip Fee Rate Increase Fiscal 2 Year 3 Year 5 Year Year Cycle Cycle Cycle

FY 06-07 20.00% 29.00% 34.00% FY 07-08 FY 08-09 20.00% FY 09-10 29.00% FY 10-11 19.00% 26.00% FY 11-12 FY 12-13 FY 13-14 FY 14-15

Our analysis of the impact of these rate adjustments indicates that the use of the three year rate adjustment cycle will result in the lowest overall rates for each jurisdiction at the end of the 10 year planning period while allowing the County to meet the projected revenue requirements. The effect of using this rate adjustment cycle on the rates of each jurisdiction is presented in Attachment 1. The details of the recommended program are presented in Table 1 below.

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Final Report Table 1 – Recommended Tip Fee Rate Adjustment Program Rate Effective Debt Issued Year Issued Repayment Increase % Date Period

29% July 1, 2006 $21,200,000 FY 05-06 10 Years 29% July 1, 2009 $12,000,000 FY 09-10 10 Years

Differential Tip Fee Rate Structure and Night Operations Surcharge As part of this engagement R3 reviewed the basis for both the current differential rate structure between jurisdictions and the night operations surcharge for the City of Merced. That review supported the general reasonableness of both the differential rate structure and the surcharge. Operating Reserve We also reviewed the appropriateness of the County’s Operating Reserve (the fund balance available at year end). The purpose of this reserve is to provide the ability to moderate future rate increases, fund planned major expenses and/or effectively respond to unforeseen events or emergencies. In addition, the Rate Model uses the Operating Reserve balance as part of the Debt Service Coverage Ratio calculation. Based on our review, and the use of the Operating Reserve in the Debt Service Ratio calculation, we recommend that the County maintain a reserve fund of approximately $6,000,000 over the life of the revenue bonds. In the event the bonds are not issued this balance could be reduced to approximately $3,000,000, which would provide the County with sufficient funds to operate the facilities for approximately 60 days in an emergency.

Background

Joint Powers Authority The Merced County Department of Public Works, Solid Waste Enterprise operation was created in 1972 through a Joint Powers Authority (“JPA”) between the County of Merced and the cities of Atwater, Dos Palos, Gustine, Livingston, Los Banos and Merced (“Member Agencies”). The purpose of the JPA was to establish a regional system to address solid waste management issues throughout Merced County. In the early 1990’s the role of the Solid Waste Enterprise was expanded to include activities mandated by the California Integrated Waste Management Act.

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Final Report Regional System The regional system consists of two landfills, the Billy Wright Landfill in Los Banos, which services the western portion of the County, and the Highway 59 Landfill in Merced, which services the eastern portion of the County. The disposal sites are primarily financed through tipping fees charged to franchised and municipal collectors, and the other facility users. The Highway 59 Landfill received approximately 250,000 tons of material in FY 2004 (~700 tons per day (“tpd”); 362 days/year). Of that total, approximately 44,000 tons, (18%)2 were diverted. The Billy Wright Landfill received approximately 66,000 tons of material in FY 2004 (~180 tpd; 362 days/year), diverting approximately 6,000 tons (9%). The Highway 59 Landfill was granted a permit for a 30-million cubic yard expansion from the California Integrated Waste Management Board in 2000. The expansion began in FY 2001 and is expected to continue through FY 2006. The Billy Wright Landfill is projected to reach capacity in 2010. The County is currently preparing an Environmental Impact Report as part of an evaluation of disposal alternatives to that site. Those alternatives include expanding the landfill and adding a transfer station for the transfer of green waste, commingled recyclables and inert materials or closing the landfill and replacing it with an onsite or offsite transfer station. Significant capital costs associated with these options, including environmental and regulatory issues, are required during the next ten to twenty years. The County desires to establish a stabilized landfill rate structure and develop financing options that will accommodate these expenditures. R3 was engaged by the County to assist with those efforts. Specifically, to provide an economic analysis of revenue requirements and funding options for the two JPA landfills, in support of the establishment of a stabilized rate structure. Disposal Rates The County has a differential rate structure for general refuse delivered to the landfills by the franchised and municipal haulers serving its member agencies. This differential rate structure, shown in the following table, is intended to account for differences in the cost to transport material from each member agency to the landfills. Differential rates do not apply to roll- off boxes or special fee items.

2 This figure includes ADC and inert material as well as green waste, wood waste and recyclable materials. 1 - 4

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Rates for material other than that delivered by franchised and municipal Final Report haulers vary by material type and are the same at the Billy Wright and Highway 59 landfills. The existing rates have been in effect since July 1998. Current Differential Tip Fee Rate Structure

Disposal Jurisdiction Rate/Ton Collector Site

Atwater $22.55 BFI Hwy 59

Dos Palos $18.91 BFI Billy Wright

Gustine $20.89 Gilton Billy Wright

Livingston $20.57 Gilton Hwy 59

Los Banos $24.19 BFI Billy Wright

Merced (1) $24.19 Municipal Hwy 59

Unincorporated

Franchise Areas 1 - 5 $22.01 WMI Hwy 59

Franchise Areas 6 & 6A $21.05 Gilton Billy Wright

(1) Plus $1.36/ton for night operations

Approach

To help achieve the County’s goals and objectives, a Rate Model was developed utilizing MS Excel 2003 and Visual Basic for Applications (VBA) programming. The Rate Model was used to project revenues and expenses through FY 14-15 and determine the best means for financing future expenses. Details on the format and the associated guidelines and assumptions used in developing the Rate Model are provided in Appendix A. The Rate Model tracks both operating and non-operating revenues and expenses, as well as capital expenditures. The first step in the process was to prepare projections of the County’s Capital, Operating and Non- Operating Expenses (Capital Project Expenditure Projections and Budget Expenditure Projections). Operating Revenues were also projected based on current tip fees (without initial adjustment) and future tonnage projections (Budget Revenue Projections). Projections for Non-Operating Revenues, which represent a small portion of overall revenues, were also accounted for in the Budget Revenue Projections. Once the initial 1 - 5

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Final Report projections were developed, the analysis focused on how best to finance the calculated annual revenue requirements.

Limitations

The Rate Model and accompanying analyses contain projections of revenues and expenses based on various assumptions and estimates provided by the County. While we reviewed those projections for reasonableness, actual results of operations will usually differ from projections because events and circumstances do not always occur as expected. Those differences may be significant and materially affect the analyses and findings presented in this report.

Financing Options

Our analysis considered the following financing options, the results of which are summarized below: 1. Pay-as-you-go (only rate increases); 2. Moderate bond issuances plus rate increases; and 3. Significant bond issuances plus rate increases. Variables As each option was evaluated, several variables were explored. These variables, which are discussed below, are interdependent and were evaluated simultaneously using the Rate Model. Capital Projects Funding. The total amount of Capital Projects to be funded and the timing of the expenditures are based on the Capital Projects schedule provided by the County. The funding may be provided solely through the use of rates, through a combination of rates and bonds or solely through the use of bonds. Amount financed through bonding. The amount of Capital Projects to be financed through the issuance of Revenue Bonds may be adjusted through the use of the Rate Model. Changes in these factors will materially affect the overall rate analysis. Timing of the debt issuance. The timing of the issuance of the Revenue Bonds is based on the Capital Projects schedule provided by the County. Changes in this schedule will materially affect the overall rate analysis. Bond repayment schedule. The bonds were estimated to be repaid on a schedule of ten years. The repayment schedule may be adjusted to be no less than ten years and no more than twenty 1 - 6

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years. Changes in this schedule will materially affect the overall Final Report rate analysis. Bond interest rate. Based on a review of current debt of the County and similar entities, the bond interest rate was set at five percent. Changes in this schedule will materially affect the overall rate analysis. Equipment lease financing. All landfill capital equipment funding was provided through capital leases. The amount to be leased and the timing of the leases were based on the landfill capital equipment schedule provided by the County. Using information provided by the County related to current capital equipment leases, interest rates were set at three percent and the lease payment term was set at five years. Changes in this schedule will materially affect the overall rate analysis. Rate Adjustment Cycle. Rates were adjusted on cycles of two, three or five years. These variables may be altered using the Rate Model. Assumptions Based on our initial review of the variables, each option was evaluated using the following assumptions: Operating and Non-Operating Expenses were financed entirely through rate adjustments; Landfill Equipment was assumed to be leased, with lease payments financed through the rates; Landfill Capital Projects not related to closure and post closure were financed with revenue bonds, with bond payments financed through the rates; Landfill Capital Projects related to closure and post closure were financed through the use of funds from the Closure/Post Closure Trust Funds to the extent monies were available in those Trust Funds; Revenue bonds were repaid over a ten year period; The rates were required to be set at a level that would maintain a minimum available year end Operating Reserve balance of $3,000,000 in the Solid Waste Enterprise Fund; and The rates were also required to be set at a level that would maintain a debt service ratio of 125 percent, (calculated by dividing the sum of the net operating revenue and the available year end balance of the Solid Waste Enterprise Fund by the annual debt service requirement). This required that the balance in the Operating 1 - 7

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Final Report Reserve be maintained at approximately $6,000,000, which includes the $3,000,000 minimum Operating Reserve balance from the preceding paragraph. Initial Results The results of our analysis of each option are discussed below.

1. Pay-as-you-go (only rate increases) The concept of funding all operational and capital expenses is both prudent and fiscally responsible in certain instances. However, due to the significant amount of capital expenditures proposed by the County over the first four years of the planning period, (approximately 31 percent of the non-closure and post closure capital projects are projected to be completed in the first year of the planning period with 64 percent projected to be completed in the first four years), this financing option is not currently considered feasible. This opinion is based on our analysis which indicated that a rate increase of approximately 90 percent would be required in FY 06-07 in order to meet minimum funding requirements under this option. In addition, unless the rates were later reduced, this increase would result in significant over-funding of the Operating Reserve in the later years of the planning period. Therefore we do not recommend that the County adopt the pay-as-you-go funding methodology to fund the required capital projects.

2. Moderate bond issuances plus rate increases Under this option, we assumed that all operating and non-operating costs would be funded through rates. We further assumed that two series of bonds would be issued in amounts sufficient to fund only the capital projects scheduled for FY 05-06 and FY 09-10 with the remainder of the capital projects to be funded through rates. This option, while requiring lower rate increases than Option 1, still resulted in rate increases of between 57 and 70 percent over the first three years of the planning period, depending on the rate adjustment cycle selected. And like Option 1, this option results in significant over-funding of the Operating Reserve in the later years of the planning period.

3. Significant bond issuances plus rate increases This option provided the most feasible method of funding the required capital projects in relation to the required rate increase and the ability to control the Operating Reserve Balance. Based on our analysis, the capital projects schedule developed by the County can be implemented with rate increases that range from 58 to 60 percent depending on the rate adjustment cycle selected. The three year rate adjustment cycle provides 1 - 8

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the lowest overall rate at the end of the planning period with rate increases Final Report of 29 percent in FY 06-07 and FY 09-10. No further rate adjustments are required under this option through the end of the planning period, (FY 14- 15).

Recommendation Based on the results of our evaluation of the financing options available to the County, Option 3, the use of significant bonded debt along with rate increases, provides the best methodology to allow the County to meet the funding needs of the proposed capital projects program while providing for the lowest rate increases of all the options. Based on the needs of the County to implement the proposed capital projects program, we recommend that the County adopt a program that includes the following factors: Implementation of rate increases of 29 percent as of July 1, 2006 and July 1, 2009; Issuance of revenue bonds in the amount of $21,200,000 in FY 05- 06 and $12,000,000 in FY 09-10; and Use of Closure/Post Closure Trust funds to the extent available for closure and post closure costs. In considering this recommendation, the County must be aware of several other related issues such as: Are provisions currently in place in all jurisdictions to guarantee a flow of material to the landfills in an amount sufficient to fund the revenue bonds? If not, what steps can be taken to provide those assurances? Which entity will actually issue the bonds? What type of liability will each jurisdiction share related to the repayment of the bonds?

Review of Differential Landfill Tip Fee Rate Structure and Night Operations Surcharge

As part of this engagement we also reviewed the basis for both the differential landfill tip fee rate structure and the night operations surcharge for the City of Merced.

Differential Tip Fee Rate Structure As previously noted, the County has a differential tip fee rate structure for general refuse delivered to the landfills by the franchised and municipal 1 - 9

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Final Report haulers serving its member agencies. This differential rate structure is intended to account for differences in the cost to transport material from each member agency to the landfills. As part of this engagement we performed a high level analysis of the current differential rate structure for purposes of rendering an opinion as to its reasonableness. Our analysis involved the following general steps:

1. We obtained the drive time (and mileage) from each jurisdiction to the applicable landfill based on information generated by Map Quest. 2. The cost per load was calculated by multiplying the round trip travel time (in hours) by an assumed direct operating cost of $60 per hour. 3. The calculated cost per load was divided by an assumed payload (tons per load) to develop a “Relative Transport Cost/Ton” to transport solid waste from each jurisdiction to the associated landfill. 4. Using the City of Merced’s “Current Tip Fee” ($24.19/ton exclusive of the night operations charge), we determined the “Calculated Tip Fee” for each jurisdiction by subtracting the calculated Relative Transport Cost/Ton for the City of Merced ($3.18/ton) from the calculated Relative Transport Cost/Ton for each jurisdiction, and then subtracting that amount from the City of Merced’s Current Tip Fee (e.g., the City of Atwater’s calculated Relative Transport Cost/Ton is $4.76, therefore, the City’s Calculated Tip Fee = $24.19 – ($4.76 - $3.18) = $22.61/ton. 5. The Calculated Tip Fee for each of the unincorporated areas was set at the average Calculated Tip Fee for the three incorporated jurisdictions that use the same landfill. The analysis resulted in calculated rates (tip fees) that were quite close to the current rates, with the largest variance between the current rate and the calculated rate less than 3 percent. We also performed a similar analysis using travel times generated by Micro-Soft – Streets & Trips 2005 software that yielded generally similar results.

Night Operations Surcharge The City of Merced currently delivers some material to the Highway 59 landfill at night, outside of the landfill’s normal operating hours. An additional equipment operator and lighting are required to provide this service. To cover this additional expense the City of Merced is charged a surcharge per ton of waste delivered to the landfill. The current surcharge is $1.36 per ton. As part of this engagement we were asked to review and comment on the reasonableness of the current surcharge. The County projected the additional staffing and lighting expense at approximately $75,000 annually. Based on a total of 51,800 tons per year this equates to a cost of $1.44 per ton, or $0.08 (5.8%) more than the current surcharge.

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The County may wish to review this surcharge periodically to account for Final Report changes in tonnage and/or associated expenses.

Review of Operating Reserves

Operating Reserves or unrestricted fund balances are a typical component of most businesses or utilities, and are similar to retained earning or owners’ equity in business enterprises. They are funds, usually accumulated over a number of years, which may be earmarked for a variety of uses. In the case of a landfill these uses may include providing: Contingency funding to respond quickly to emergency conditions: Capacity to mitigate rate spikes and allow for more consistent rate adjustments: and Funding for all or a portion of planned major expenses (e.g., cell development). How much is enough? The amount of operating reserves depends upon a variety of factors, and may change over time. Based on our review we believe that a target reserve of approximately $6,000,000 is reasonable. We base this assessment on the following factors: The available reserve balance should be able to provide the County with sufficient revenue to fund approximately 60 days of operating expenses in an emergency. This would equate to a minimum reserve of approximately $3,000,000; and The available reserve balance must also be sufficient to allow the County to maintain the required Debt Service Ratio. This requires that the Operating Reserve be maintained at a level of approximately $6,000,000 during the life of the bond issues.

Review of Trust Accounts

The Rate Model accounts for funding for the following Trust Funds:

Highway 59 Landfill and Billy Wright Landfill Corrective Action Annual contributions for the Highway 59 Landfill and Billy Wright Landfill Corrective Action trust funds were based on the FY 03-04 deposits, adjusted for inflation. Highway 59 Easement Endowment The County is not currently funding this reserve. No annual contributions are accounted for in the Rate Model. Landfill Operating Liability 1 - 11

217

Final Report The County has reported that this reserve is fully funded. No additional contributions are accounted for in the Rate Model. Solid Waste Depreciation / Landfill Equipment – Replacement Contingency The County has reported that this reserve is no longer used and should be considered to be available to the Solid Waste Enterprise Fund. Accordingly no further funding of this reserve is accounted for in the Rate Model and the available funds of approximately $400,000 are considered utilized in FY 05-06.

Highway 59 Landfill and Billy Wright Landfill Closure/Post Closure Annual contributions for the Highway 59 Landfill and Billy Wright Landfill Closure/Post Closure Trust Funds were based on the FY 03-04 deposits, adjusted for inflation. Beginning in FY 06-07 monies in these trust funds were considered available for funding closure and post closure activities and were considered utilized to the extent available.

1 - 12

218

Final Report $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 36.63 $ $ 37.53 $ $ 43.10 $ $ 31.47 $ $ 35.94 $ $ 34.76 $ $ 34.23 $ $ 40.25 $ $ 41.61 $ $ 35.03 $ 36.63 $ 37.53 $ 43.10 $ 31.47 $ 35.94 $ 34.76 $ 34.23 $ 40.25 $ 41.61 $ 35.03 $ 36.63 $ 37.53 $ 43.10 $ 31.47 $ 35.94 $ 34.76 $ 34.23 $ 40.25 $ 41.61 $ 35.03 $ 36.63 $ 37.53 $ 43.10 $ 31.47 $ 35.94 $ 34.76 $ 34.23 $ 40.25 $ 41.61 $ 35.03 $ 36.63 $ 37.53 $ 43.10 $ 31.47 $ 35.94 $ 34.76 $ 34.23 $ 40.25 $ 41.61 $ 35.03 $ $ 36.63 $ $ 37.53 $ $ 43.10 $ $ 31.47 $ $ 35.94 $ $ 34.76 $ $ 34.23 $ $ 40.25 $ $ 41.61 $ $ 35.03 Attachment 1 Proposed Rates $ 28.39$ 28.39 $ 29.09$ 29.09 $ 33.41$ 33.41 $ 24.39$ 24.39 $ 27.86$ 27.86 $ 26.95$ 26.95 $ 26.54$ 26.54 $ 31.21$ 31.21 $ 32.57$ 32.57 $ 27.15$ 27.15 $ $ 28.39 $ $ 29.09 $ $ 33.41 $ $ 24.39 $ $ 27.86 $ $ 26.95 $ $ 26.54 $ $ 31.21 $ $ 32.57 $ $ 27.15 22.01$ 22.01 22.55 25.90 18.91 21.59 20.89 20.57 24.19 25.55 21.05 22.01 $ $ 22.55$ 22.55 $ $ 25.90$ 25.90 $ $ 18.91$ 18.91 $ $ 21.59$ 21.59 $ $ 20.89$ 20.89 $ $ 20.57$ 20.57 $ $ 24.19$ 24.19 $ $ 25.55$ 25.55 $ $ 21.05$ 21.05 $ FY'03-04 FY'04-05 FY'05-06 FY'06-07 FY'07-08 FY'08-09 FY'09-10 FY'10-11 FY'11-12 FY'12-13 FY'13-14 FY'14-15

1 - 13 Rates Atwater Other General Refuse General Other Dos Palos All Other Materials Other All Gustine Livingston Los Banos Los Merced Gilton Waste Management 219

Appendices Appendix A: Rate Model Format, Guidelines and Assumptions Introduction This Rate Model is designed to utilize current and historical data along with selected variables to develop funding options and calculate the associated landfill rates needed to meet the County’s revenue requirements and the criteria of the selected funding option. The model includes historical data and projects results through FY 14-15. The reliability of the rate structure is directly related to the accuracy of the historical data, the projected Capital Projects schedule, the selected variables and the overall assumptions on which this Model is based.

Format The Model was developed using Excel 2003. Processing and calculations are performed using standard Excel functions, macros and Visual Basic for Applications (VBA) programming. The Model is made up of one Workbook consisting of ten interactive Worksheets. The Workbook and Worksheets are listed in Table 1 along with their default settings:

Table 1 – Rate Model Workbook/Worksheet Name Protected/ Visible/Hidden Unprotected Merced COS Model (Workbook) UnProtected Visible Rate Sym Protected Visible Rate Model UnProtected Visible Rate Adjustment Calc UnProtected Hidden Bonds UnProtected Hidden Capital Projects UnProtected Visible Equipment Summary UnProtected Visible Equipment Detail UnProtected Visible LF Capacity UnProtected Visible Projected Budget UnProtected Visible Historical Budget UnProtected Hidden Appendix A - 1

R:\Projects\Closed\2004\104001 Merced Co\Reports\Appendix A Final.doc 1/16/2005 6:06 PM 220

Variables Appendices The Rate Model uses two types of variables, Annual Adjustment Variables (“AAV”) and Sensitivity Variables (“SV”).

Annual Adjustment Variables These variables are normally used to provide source data for factors that may or may not change from year to year, but that are not normally used in performing sensitivity analysis. Examples of an AAV would be: The annual factor to calculate interest earning on available fund balances; The factor used to estimate tonnage growth; or The factor used to estimate annual inflation.

Sensitivity Variables These variables are normally used to change data as part of sensitivity analysis exercises. Examples of an SV would be: The annual change in the rates charged at the landfills; A change in the bond or lease interest rate; A change in bond or lease repayment term; or A change in the annual cycle used to calculate rate adjustments. File, Workbook and Worksheet Protection Initial Protocol The file has not been password protected, but in order to preserve the integrity of the model should be designated as read-only. Certain functions of the model are sensitive to the file name. In the event the file name is changed, the file name in the VBA code related to those sections must be changed. Except as set forth in Table 1 above, the Workbook and those Worksheets that will normally be used are visible, but not currently password protected. Those Worksheets that will normally not need to be viewed have been set as Unprotected and Hidden. The majority of the Rate Sym Worksheet is protected but not with a password. Those sections of the Rate Sym Worksheet containing data entry cells are not protected. Those Worksheets that will normally not need to be viewed have been unprotected and hidden.

Appendix A - 2

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Worksheets Appendices

Rate Sym Rate Sym should be used to set up all sensitivity analysis in the rate model and to provide summary financial data. The upper and lower portions of the Worksheet are divided by a solid red line. The upper portion is the financial information area and the lower portion is the sensitivity analysis area. All Sensitivity Variables are located BELOW the red line. All data entry should take place below that line. The financial information area is designed to provide a summary of critical financial data for use during the sensitivity analysis sessions. Protection in this area of Rate Sym is turned on and should not be turned off in most instances. Some of the data areas on Rate Sym are “position sensitive”. Therefore Rows or Columns should NEVER be inserted or deleted on this Worksheet. Rate Sym contains the following Sensitivity Variables: Bonded Debt Area (up to two series)

o Amount by series o Interest rate by series o Repayment term by series o Fiscal Year issued by series Funding Area

o Capital equipment funding option box Rates or lease

o Capital projects funding option box Rates, bonds, or rates and bonds Equipment Lease Area

o Interest rate o Repayment term Closure Trust Funds Area

o Use BW closure funds o Use Hwy 59 closure funds BW Landfill Closure or Expansion Area

o BW Landfill Closure o BW Landfill Expansion

Appendix A - 3

222

Landfill Rate Adjustment Area Appendices

o Selection of 2, 3, or 5 year rate adjustment cycle o Selection of rate adjustment percentage for each cycle by fiscal year

o Selection of Merced Night Operations rate by fiscal year Rate Sym provides information to Rate Model, Rate Adjustment Calc, and Bonds.

Rate Model Rate Model provides detailed accounting of actual and projected operating revenues and expenses and Trust Fund Balances, as well as an annual summary of bonded debt, capital expenditures, and remaining proceeds Rate Model provides information to Rate Sym and Bonds. Rate Model is an information sheet only – no adjustments should be made to this sheet

Rate Adjustment Calc Rate Adjustment Calc is used to calculate the actual rate changes for each jurisdiction. Rate Adjustment Calc is an information sheet only – no adjustments should be made to this sheet

Bonds Bonds calculates the debt service (principal and interest) payments for the bond issues in addition to the capital equipment leasing costs. Bonds is an information sheet only – no adjustments should be made to this sheet

Capital Projects Capital Projects is used to project landfill Capital Projects expenses, including annual O&M expenses for new capital facilities but excluding equipment expenses, by FY and uses the format of the County’s Capital Projects worksheet. Capital Projects is a data input sheet and should be used to update Capital Project information, including the individual capital costs, their timing, and annual O&M for new facilities.

Equipment Summary Equipment Summary provides a summary of Capital Equipment expenses by FY and has been adjusted so that the timing of new equipment needs Appendix A - 4

223

and the related costs coincide with existing lease terms. Costs are Appendices presented in current year and future year dollars. This information is used to determine lease expenses for new landfill equipment, and changes in this schedule may affect the lease payments shown in the projected budgets. Equipment Summary is an information sheet only – no adjustments should be made to this sheet.

Equipment Detail Equipment Detail provides detailed listing of Capital Equipment Expenses by FY. Equipment Detail is a data input sheet that reflects the County’s current and planned equipment inventory. It should be used to update information on the specific pieces of equipment, including cost and timing of acquisition.

Landfill Capacity Landfill Capacity provides historical and project tonnages by landfill along with remaining capacities, based on the Rate Model’s tonnage projections. Landfill Capacity is an information sheet only – no adjustments should be made to this sheet.

Projected Budget Projected Budget provides a detailed listing of Projected Actual FY 03-04 and Requested FY 04-05 and FY 05-06 budgets, but also considers the projected FY 04-05 actual figures. Many of the FY 03-04 through 05-06 numbers are derived from formulas based on the Historical Budget. The individual budget line items are then projected through FY 14-15. Projected Budget is a data input sheet and should be used to update specific line items expenditures.

Historical Budget Historical Budget provides a detailed listing of recent historical budget data, including projected actual FY 04-05, for information purposes only. This Worksheet is hidden. Historical Budget is an information sheet only – no adjustments should be made to this sheet

Appendix A - 5

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Guidelines Appendices

General Tonnages, revenues and expenses are reported on a fiscal year basis, unless otherwise noted. The Model is based on a “cash-basis” accounting system, whereby revenues are recorded in the fiscal year in which cash is received and expenses are recorded in the fiscal year in which cash is disbursed.

Tonnages Municipal and franchised hauler “General Refuse” tonnage is projected by jurisdiction by multiplying the annual percentage population change in each jurisdiction (based on the annual percentage change in population from 2000 - 2020 as reported by the Merced County Association of Governments) by the prior year actual/projected tonnage. All other “General Refuse Tonnage” and non-“General Refuse” tonnage is projected at the same (weighted average) rate projected for the municipal and franchised hauler “General Refuse” as calculated above. No change in the relative amount of material imported into or exported from the County is assumed. The Model assumes no changes to the current (FY 04-05) relative percentage of tonnages by Material Number (e.g., no changes to Recycled Material and Diverted Material percentages).

Expenses

Operating Expenses Expenses are reported and projected in total (i.e., expenses are not tracked for each individual landfill and there is no allocation of expenses to the individual landfills within the Model). Operating Expenses are based on the County’s “Summary of Budget Projections – Solid Waste Enterprise (Budget Unit 75100) – In Fiscal Year.” R3 projections assume a 3 percent annual increase due to inflation, except for increases for Employee Group Insurance (4 percent) and Maintenance/Equipment – Construction (5 percent)1.

1 Budget Account 21205 – Accounting for Fuel and Oil. Appendix A - 6

225

An additional growth factor of 2.3 percent has been applied to Labor Appendices Costs (budget items in the 10000 series) and Maintenance/Equipment – Construction. Also, we have adjusted the FY 05-06 wages and salaries to account for the addition of 3 new maintenance workers and 1 new manager.

Non-Operating Expenses (Contributions to Trust Funds) Annual contributions to the Trust Fund Balances have been set at FYE 2004 actual amounts, adjusted annually at 2.2 percent. No adjustments to the Trust Fund contributions have been made associated with the expansion or non-expansion of the Billy Wright Landfill. Capital Expenses Landfill Equipment

o Costs are based on the County’s “Summary of Equipment Cost Projections” Table EQ1, which is based on the County’s Solid Waste Heavy Equipment Fleet spreadsheet. (Changes to the County’s original estimates are shown in light yellow highlighted cells.)

o Based on information provided by the County the $100,000 annual Replacement Contingency has been deleted. Landfill Capital Projects

o Costs are based on the County’s “Capital Improvements - Refined” from Rod Andrews (email of 10-27-05).

o The Model assumes a 2 percent annual cost for structural maintenance of the Transfer Facility, Maintenance Facility, and Gas Systems, and a 1 percent annual cost for maintenance of gas system and closed landfill cells. Also, all future costs assume a general inflation rate of 3 percent.

o The Model does not provide for any Capital Projects other than as specified by the County.

Revenues

Operating Revenues (Sanitation Services – Landfill) Operating Revenues are projected by multiplying the projected tons for the current year by the applicable rates.

Appendix A - 7

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Non Operating Revenues Appendices

In the event the Previous Years Ending Balance is positive Interest revenue is projected by multiplying that Previous Year Ending Balance by the interest rate of 2.75 percent as specified by the County. In the event the Previous Ending Balance is negative, Interest revenue is set to $0.00. Non-Operating Revenues, exclusive of “Interest” and Revenue Applicable to Prior Years has been set at FY 03-04 amounts going forward (i.e., no annual adjustment).

Rates All rate adjustments are assumed to take place on July 1st (the start of the fiscal year). Landfill rates are projected to cover the projected expenses (including any debt service expenses) while maintaining a target “Year-end Available Balance” (i.e., Reserve Fund) of $6,000,000. Landfill rates are structured to provide for debt service coverage of 125 percent. The County’s existing differential rate structure for “General Refuse” has not been adjusted. While we did conduct a review of that differential rate structure the findings generally supported its reasonableness and, therefore, no changes were made. The City of Merced’s Night Operations surcharge of $1.36 has not been adjusted.

Sensitivities Rates have been calculated assuming an annual adjustment cycle of 3 years (base case), with sensitivities for adjustments every 2 and 5 years. For ease of modeling a single blended rate will be calculated for all tonnage other than General Refuse and that rate will be adjusted by the same relative percentage as the differential “General Refuse” rates.

Bonds Bonds are assumed to be issued in an amount needed to cover projected Capital Projects that are not related to closure or post closure expense.

Appendix A - 8

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Trust Fund Balances Appendices Trust Fund Balances are based on the FYE 2004 amounts plus annual contributions (Non Operating Expenses (Contributions to Trust Fund Balances)), plus interest on the prior year balance per the specified interest rate of 2.75 percent. The analysis does not consider what if any surplus or shortfall exists in the projected trust fund balances, or make any corresponding adjustments related to any such surpluses or shortfalls that may exist over the planning period.

Appendix A - 9

228 229 230 231 232 233

Pro Forma Model Authority Long Term Operations

Final Report

Presented to: Merced County Regional Waste Authority

7040 North Highway 59 Merced, CA 95348 (209) 723-4481

Presented by:

SCS ENGINEERS 3117 Fite Circle, Suite 108 Sacramento, CA 95827 (916) 361-1297

November 2, 2015 File No. 09215115.00

Offices Nationwide www.scsengineers.com

234 1.0 INTRODUCTION

In June 2015, the Merced County Regional Waste Authority (Authority) retained SCS Engineers (SCS) to conduct a solid waste cost of services and rate study (Study) for their solid waste system (System). From 2006 to 2013 the Authority operated with fiscal deficits and failed to address long-term bond debt ($30 million) and near-term capital needs ($22 to $29 million.) And although extensive positive changes occurred in FY 13/14 and 14/15, an analysis was warranted to ensure future rates aligned with financial needs.

Based on data and information provided by Authority staff, a Pro Forma rate model (Model) was developed, which enabled SCS to make projections of financial performance of solid waste operations for the upcoming 12-year planning period (FY 2016-2027) and model different possible cash flow scenarios. This report provides a discussion of the methodology used to conduct the analysis, the revenue requirements of the Authority’s program as determined by the analysis, and proposed different operating scenarios to be considered by the Authority.

2.0 PRO FORMA MODEL

2.1.1 Data Collection

At the beginning of SCS’ engagement, Authority staff provided background data and information concerning residential collection revenues and operating expenses. This included the following critical information:

• Staffing and organizational charts. • Wages and benefit rates. • Rate schedules. • Bond debt. • Fund account summaries (totals and comparisons). • Past and current operating budgets. • Fleet replacement plan. • Waste deliveries and customer records. • Capital improvement plan (prior to this study, the Authority completed a comprehensive analysis of the landfill’s remaining airspace and future funding needs). • Ordinances and bond statements. • Administrative costs.

2.1.2 Rate Model

At the outset of the work effort, SCS developed a Microsoft Excel™ spreadsheet-based, pro- forma model (Model) to assist in the completion of the analysis. This model includes the following facets:

235 • An analysis of operational expenditures (personnel, contract and purchased services, materials and supplies, transfers.

• Analysis of capital outlays (equipment replacement and capital projects).

• Revenue sufficiency analysis (annual revenue projections and rate plan to provide sufficient revenues).

• Funds analysis (reserve requirements, transfers to reserves, administrative costs, beginning and ending fund balances).

Based on data and information provided by the Authority, these individual spreadsheets were linked to develop an overall model to conduct the assessment analysis.

2.1.3 Methodology Overview

The following methodology was utilized by SCS to conduct the cost of service analysis:

• Collect Historical Actual Expenses and Revenues for the System – The first task was to gather available historical actual revenue and cost data and include these into a financial database.

• Development of the “Test Year” - The second task was the development of an annual revenue requirement for a “Test Year”. The revenue requirement represents the total revenue for the System to recover during a year to fund all System costs. SCS worked with County staff to select a period that reflected a typical year for the System. Actual expenses for FY 14/15 were used as the basis of the Test Year for the Study. SCS then worked with Authority staff to make these costs more representative of anticipated conditions during the upcoming 12-year financial planning horizon. The resulting Test Year was used as the basis for forecasting expenses for the 12-year forecast (FY 15/16 to FY 26/27.

• Development of a Revenue Requirement Projection – After developing the revenue requirement for the Test Year, SCS worked with Authority staff to project changes in anticipated costs due to inflation, labor increases, facility and vehicle replacement, planning costs, etc. This resulted in a 12-year revenue requirement forecast for the entire system including disposal of solid waste from Authority members and out-of-county waste deliveries.

• Revenue Offsets – SCS worked with Authority staff to develop estimates of any revenue offsets (governmental grants, if any, interest, and.LFG sales).

• Operational Cost Savings - SCS worked with Authority staff to develop estimates of any operational savings (pension savings).

236 • Determination of Waste Tonnage – SCS worked with Authority staff to develop reasonable estimates of waste tonnage over the next 12-year period under various assumptions (low, medium and high growth assumptions).

• Calculation of Cash Flow – SCS then distributed the net revenues and cash needs for fleet and capital expenses, and development of a “rainy day fund” (minimum 25% of annual operating expenses) to project annual cash reserves.

2.2 DEVELOPMENT OF THE REVENUE REQUIREMENT PROJECTION

In addition to developing the Test Year revenue requirements, SCS forecasted the annual revenue requirement for FY 15/16 to FY 26/27. In order to develop the forecast, SCS projected how operating and capital costs would change over the forecast period due to factors such as inflation. The assumptions used to develop the forecast include the following annual increases:

• General – 2.3 percent (last 11 years, Federal Reserve Board).

• Solid waste growth - low 0.5% percent; medium 1.5 percent (current Authority trends); and high 2.5 percent (higher out-of-county imports).

• MCAG – retirement contribution reduction of $135,000 in FY15/16.

• Closure and post closure accrual - $75,000 annually.

• Beginning unencumbered cash - $14,000,000 (ending FY/14/15 fund balance).

• Annual allocation to Fleet Reserve - $748,142 (current fleet reserve balance minus projected purchases/replacements.

• Landfill tipping fees - $35.35 (Authority members); $22.73 (out-of-county waste imports).

• Methane gas sales - $0 (project not initiated).

• “Rainy Day Fund” – Minimum of 25% of annual operational expenses.

In addition to forecasting cost increases due to inflation, SCS accounted for the following costs or growth factors over the 12-year forecast as detailed in schedules (Appendix):

• Capital Improvements – In addition to the costs of operation, the Authority cash reserve was assumed to recover costs for capital improvements to the system, either for the Valley Fill or Phase 6B cell designs.. SCS utilized cost data provided by the Authority as part of the Authority’s Capital Improvement Plan.

• Annual transfer of a projected $748,142 from annual net revenues to the Fleet Reserve Fund, as shown in Cash Flow Analysis schedule provided in the Appendix.

237 • Annual transfer of funds needed to achieve a minimum balance in a Rainy Day Fund (25% of annual operating costs).

2.3 SCHEDULES

Nine schedules, which are linked components of the Pro Forma Model, are provided in the Appendix:

• Schedule 1 – Assumptions.

• Schedule 2 – Tonnage.

• Schedule 3 – Operating Costs.

• Schedule 4 – Cash Flow Analysis.

• Schedule 5 – Revenues.

• Schedule 6 – Debt Service.

• Schedule 7 – LFG-Energy.

• Schedule 8 – Capital Improvements Plan.

• Schedule 9 – Fleet Replacement Plan. 3.0 KEY FINDINGS AND RECOMMENDATIONS

The Pro Forma Model suggests the following major findings and recommendations:

• Net revenues during the 12-year planning horizon appear to range between $2 and $3 million annually.

• The current debt service is a major drain ($2.1 million a year) on the Authority’s cash flow until the bonds are defeased in FY 26/27.

• Allocation of funds for projected capital improvements, fleet replacement, and a new “Rainy Day Fund” can all be achieved even if the Authority receives low waste deliveries to the landfill. Projected cash reserves are projected to be as follows:

o $12.5 million for Valley Fill option.

o $ 5.4 million for Phase 6B option. • The Authority should consider funding the LFG-E project out of cash reserves rather than bond proceeds. Projected annual revenues for methane sales are $320,000.

238

SCHEDULES

239 PRO FORMA MODEL, MERCED COUNTY REGIONAL WASTE AUTHORITY, CA SCHEDULE 1 - ASSUMPTIONS Item Input Description Quantity Units/Description Comments/Source REVENUE 1 Government Grants $0 None Anticipated Authority Provided 2 Landfill Tipping Fee 3 In-County Tons $35.35 Average for SW Agencies SCS Calculated 4 Out-of-County Tons $22.75 SCS Assumption 5 Tipping Fee Increase $0.00 No Increase Over Planning Period SCS Assumption 6 Growth in MSW Tonnage 7 Low 0.5% Flat Tonnage Increase SCS Assumption 8 Medium 1.5% Average MSW Disposed to Authority 1999-2014 SCS Assumption 9 High 2.5% Extra Tonnage Imported SCS Assumption 10 Los Banos LF Mining Project $0 55,000 tons Spring 2017 Authority Provided 11 Methane Gas Sales $0 See LFG Spreadsheet, 18 Yr Model Authority Provided EXPENSES 12 Annual Inflation Rate 2.3% Average Last 11 Years - Federal Reserve Board SCS Assumption 13 Tipping Fee Escalation Rate 0.0% 11- Year Federal Reserve Statistics 14 MCAG Benefit Savings $135,000 Savings in Pension for 5 Legacy Employees Authority Provided 15 Accrual For Closure Costs $75,000 Closure/Long Term Care Authority Provided RESERVES 16 Unencumbered Cash Reserve $8,600,000 Authority Unrestricted Cash Authority Provided 17 Transfer to Fleet Replacement $748,142 Fleet Replacement Deficit Authority Provided 18 Minimum Operational Reserve 25% % Annual Operational Expenses SCS Assumption

240 PRO FORMA MODEL, MERCED COUNTY REGIONAL WASTE AUTHORITY, CA SCHEDULE 2 - TONNAGE

ACTUAL PROJECTED FLOW AND COLLECTION AGREEMENTS Landfill Landfill Year MSW Tons Disposed Year Low Medium High Jurisdiction/Source MSW Delivered Revenues ($) Collection Hauler Tipping Fee ($) Disposed 1999 208,641 2015 304,223 304,223 304,223 City of Atwater 21,644 37.48 $811,217 Private BFI Highway 59 2000 218,725 2016 305,744 308,786 311,829 City of Dos Palos 3,792 31.43 $119,183 Private BFI Billy Wright 2001 220,599 2017 307,273 313,418 319,624 City of Gustine 1,662 34.72 $57,705 Private Gilton Billy Wright 2002 226,385 2018 308,809 318,119 327,615 City of Livingston 14,639 34.20 $500,654 Private Gilton Highway 59 2003 248,700 2019 310,353 322,891 335,805 City of Los Banos 26,930 40.21 $1,082,855 Private BFI Billy Wright 2004 265,360 2020 311,905 327,735 344,200 City of Merced 61,548 40.21 $2,474,845 Municipal Highway 59 2005 284,831 2021 313,465 332,651 352,805 County Franchise Areas 1-5 36.58 $1,363,355 Private Winton Highway 59 74,541 2006 306,498 2022 315,032 337,640 361,626 County Franchise Areas 6 & 6A 34.98 $1,303,722 Private Gilton Billy Wright 2007 262,597 2023 316,607 342,705 370,666 Tuolumne County 33,000 23.47 $774,510 Municipal Tiger Highway 59 2008 249,663 2024 318,190 347,846 379,933 Turlock Scavenger 10,000 19.40 $194,000 Private TS Highway 59 2009 216,044 2025 319,781 353,063 389,431 Cash Customers 10,000 43.00 $430,000 Self-Haul Self-Haul Highway 59 2010 220,100 2026 321,380 358,359 399,167 TOTAL MSW 257,756 $9,112,045 2011 250,614 2027 322,987 363,735 409,146 AVERAGE TIPPING FEE $35.35 2012 234,940 *Was entered as $31.43. ATF: $34.43 2013 263,001 Source: Brooks Stayer, September 2015 email. Flow Control until 2036 2014 287,156 Baseline 2014/2015 2015 304,223 ADDITIONAL TONNAGE Landfill Jurisdiction MSW Delivered Revenues ($) Tipping Fee ($) Comments Source: Solid Waste Revenue Bonds, Series 2007, Annual Report - Fiscal Year 2013/2014 Leo Recycling 6,000 $ 23.33 $140,000 Not guaranteed 2015 Tonnage, Nadia Gonzalez, 9/11/2015 Pacific Recycling 6,000 $ 23.33 $140,000 Not guaranteed Synagro 10,000 $ 22.00 $220,000 Not guaranteed 450,000 TOTALS 22,000 $ 22.73 $500,000 400,000 Los Banos LF Cleanup 55,000 $ 21.82 $1,200,000 Spring 2017. One-time monies 350,000 300,000 Source: Brooks Stayer, September 2015 email.

250,000 Low 200,000 Medium % of Waste 150,000 High For Projection Going Forward Stream Tipping Fee Comment In County 0.84 $35.35 Calculated 100,000 Out of County 0.16 $22.75 Per Brooks Stayer 50,000 0 Contractual Tons 257,756 Total Tons 304,223 % Contractual Tons 85% 304,223 257756 Contractual Revenue $ 9,112,045 Cash Tons 45,633 Cash Revenues $ 1,037,124 Total Revenue $ 10,149,169

241 PRO FORMA MODEL SOLID WASTE TIPPING PRO FORMA MODEL, MERCED COUNTY REGIONAL WASTE AUTHORITY, CA SCHEDULE 3 - OPERATING COSTS

Fiscal Year TITLE 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027 EMPLOYEE RELATED EXPENSES Salaries and Wages - Permanent Employees 744,434 663,382 619,305 433,468 368,968 377,454 386,136 395,017 404,102 413,397 422,905 432,632 442,582 452,761 463,175 473,828 Overtime - Permanent Employees 25,752 22,303 9,465 3,854 20,000 20,460 20,931 21,412 21,904 22,408 22,924 23,451 23,990 24,542 25,107 25,684 Special Pays 0 0 0 0 7,094 7,257 7,424 7,595 7,770 7,948 8,131 8,318 8,509 8,705 8,905 9,110 Retirement 255,025 285,437 245,690 188,712 184,484 53,727 54,963 56,227 57,520 58,843 60,197 61,581 62,997 64,446 65,929 67,445 Retirement - Prior Service Costs 52,104 35,260 41,285 32,044 23,983 24,535 25,099 25,676 26,267 26,871 27,489 28,121 28,768 29,430 30,106 30,799 Post Retirement Benefits 0 57,126 45,852 0 0 0 0 0 0 0 0 0 0 0 0 0 FICA 45,358 43,209 37,381 26,590 24,556 25,121 25,699 26,290 26,894 27,513 28,146 28,793 29,455 30,133 30,826 31,535 Medicare Tax 10,608 10,105 8,742 6,219 5,743 5,875 6,010 6,148 6,290 6,435 6,583 6,734 6,889 7,047 7,209 7,375 Employee Group Insurance 257,232 142,606 120,937 90,902 82,936 84,844 86,795 88,791 90,833 92,923 95,060 97,246 99,483 101,771 104,112 106,506 Disability Insurance 0 0 2,947 0 590 604 617 632 646 661 676 692 708 724 741 758 Unemployment Insurance 14,170 1,461 1,332 2,259 2,562 2,621 2,681 2,743 2,806 2,870 2,937 3,004 3,073 3,144 3,216 3,290 Workers Compensation 206,860 121,881 108,735 56,025 70,091 71,703 73,352 75,039 76,765 78,531 80,337 82,185 84,075 86,009 87,987 90,011 Subtotal Salaries and Benefits $1,611,543 $1,382,770 $1,241,671 $840,073 $791,007 $674,200 $689,707 $705,570 $721,798 $738,399 $755,383 $772,756 $790,530 $808,712 $827,312 $846,341 SERVICES AND SUPPLIES Insurance - General Liability 0 109,430 137,177 182,660 215,000 219,945 225,004 230,179 235,473 240,889 246,429 252,097 257,895 263,827 269,895 276,103 Clothing and Personal Supplies 15,732 23,301 15,199 13,903 17,600 18,005 18,419 18,843 19,276 19,719 20,173 20,637 21,111 21,597 22,094 22,602 Janitorial Expense 5,395 22,629 29,435 25,776 29,000 29,667 30,349 31,047 31,761 32,492 33,239 34,004 34,786 35,586 36,404 37,242 Maintenance - Equipment 458,327 276,631 176,347 330,694 326,600 334,112 341,796 349,658 357,700 365,927 374,343 382,953 391,761 400,772 409,989 419,419 Maintenance - Equipment, Fuel, Oil and Supplies 649,093 689,335 550,878 325,228 582,500 595,898 609,603 623,624 637,967 652,641 667,651 683,007 698,717 714,787 731,227 748,045 Maintenance - Structures, Improvements and Grounds 117,480 91,881 68,717 152,138 269,000 275,187 281,516 287,991 294,615 301,391 308,323 315,415 322,669 330,090 337,683 345,449 Small Tools and Instruments 8,019 3,060 2,088 5,276 9,000 9,207 9,419 9,635 9,857 10,084 10,316 10,553 10,796 11,044 11,298 11,558 Subscriptions, Dues, Memberships 3,781 3,867 4,378 1,817 5,313 5,435 5,560 5,688 5,819 5,953 6,090 6,230 6,373 6,520 6,670 6,823 Cash Short/Over 0 98 233 78 500 512 523 535 548 560 573 586 600 614 628 642 Bank Charges 0 664 3,213 5,162 5,000 5,115 5,233 5,353 5,476 5,602 5,731 5,863 5,998 6,136 6,277 6,421 Office Expense 39,297 44,261 38,891 32,251 48,200 49,309 50,443 51,603 52,790 54,004 55,246 56,517 57,817 59,146 60,507 61,898 MCAG Staff Costs 0 2,229,301 1,751,488 1,687,518 2,208,538 2,259,334 2,311,299 2,364,459 2,418,841 2,474,475 2,531,388 2,589,610 2,649,171 2,710,102 2,772,434 2,836,200 Professional and Special Services 2,934,331 747,671 798,975 603,316 753,735 771,071 788,806 806,948 825,508 844,495 863,918 883,788 904,115 924,910 946,183 967,945 Information Services 10,658 85,303 78,873 76,059 86,200 88,183 90,211 92,286 94,408 96,580 98,801 101,073 103,398 105,776 108,209 110,698 Interest Expense 0 0 23,525 5,980 6,902 7,061 7,223 7,389 7,559 7,733 7,911 8,093 8,279 8,469 8,664 8,864 Laboratory Testing Services 6,225 5,091 3,319 2,490 5,500 5,627 5,756 5,888 6,024 6,162 6,304 6,449 6,597 6,749 6,904 7,063 Publications and Legal Notices 1,925 2,775 1,679 2,099 4,000 4,092 4,186 4,282 4,381 4,482 4,585 4,690 4,798 4,908 5,021 5,137 Rents and Leases of Equipment 1,166,792 1,347,750 2,043 131,779 50,000 51,150 52,326 53,530 54,761 56,021 57,309 58,627 59,976 61,355 62,766 64,210 Rents and Leases - Structures, Improvements and Ground 18,738 25,103 12,188 7,063 7,000 7,161 7,326 7,494 7,667 7,843 8,023 8,208 8,397 8,590 8,787 8,989 Spec Dept Expense - Other 43,280 39,859 51,069 50,407 65,000 66,495 68,024 69,589 71,189 72,827 74,502 76,215 77,968 79,762 81,596 83,473 Spec Dept Expense - Cost Allocation Plan 63,808 55,998 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Spec Dept Expense - Software 12,885 25,518 19,612 32,411 50,000 51,150 52,326 53,530 54,761 56,021 57,309 58,627 59,976 61,355 62,766 64,210 Spec Dept Expense - State SW Fees 333,536 368,626 402,235 320,460 363,581 371,943 380,498 389,250 398,202 407,361 416,730 426,315 436,120 446,151 456,412 466,910 Transportation and Travel 10,181 7,697 15,523 20,752 20,000 20,460 20,931 21,412 21,904 22,408 22,924 23,451 23,990 24,542 25,107 25,684 Training 0 0 0 5,291 10,000 10,230 10,465 10,706 10,952 11,204 11,462 11,725 11,995 12,271 12,553 12,842 Communications 13,505 29,437 23,000 23,794 23,460 24,000 24,552 25,116 25,694 26,285 26,889 27,508 28,141 28,788 29,450 30,127 Utilities 49,852 46,682 50,879 56,169 83,000 84,909 86,862 88,860 90,904 92,994 95,133 97,321 99,560 101,849 104,192 106,588 Closure/Post Closure Expense 137,934 54,385 34,801 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 Subtotal Services and Supplies $6,100,774 $6,336,353 $4,295,765 $4,175,571 $5,319,629 $5,440,255 $5,563,656 $5,689,895 $5,819,038 $5,951,151 $6,086,302 $6,224,562 $6,366,002 $6,510,695 $6,658,716 $6,810,142 ADDITIONAL CASH OUTLAYS Liability Payments: Reimbursed Expenses 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Bond Debt Service 2,624,853 2,622,728 2,622,290 2,621,490 2,175,029 2,173,683 2,171,242 2,170,706 2,175,996 2,170,924 2,171,730 2,173,229 2,173,365 2,175,140 2,171,473 2,171,471 Debt Issuance Costs 0 0 0 (5,200) 0 0 0 0 0 0 0 0 0 0 0 0 Scalehouse Improvements 0 0 43,315 12,961 44,000 0 0 0 0 0 0 0 0 0 0 0 Subtotal Liability Payments 2,624,853 2,622,728 2,665,605 2,629,251 2,219,029 2,173,683 2,171,242 2,170,706 2,175,996 2,170,924 2,171,730 2,173,229 2,173,365 2,175,140 2,171,473 2,171,471 TOTAL OPERATING EXPENSES $11,948,713 $11,724,621 $9,444,712 $7,644,895 $8,329,665 $8,288,138 $8,424,605 $8,566,171 $8,716,832 $8,860,474 $9,013,415 $9,170,548 $9,329,897 $9,494,547 $9,657,501 $9,827,953

242 PRO FORMA MODEL, MERCED COUNTY REGIONAL WASTE AUTHORITY, CA SCHEDULE 4 - CASH FLOW ANALYSIS

Fiscal Year Scenario Item 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027 SUMMARY 12 Years Operating Revenues $11,667,619 $10,480,602 $10,538,501 $10,596,816 $10,655,551 $10,714,713 $10,774,306 $10,834,335 $10,894,806 $10,955,724 $11,017,095 $11,078,925 $11,141,219 Operating Expenses ($7,644,895) ($8,329,665) ($8,288,138) ($8,424,605) ($8,566,171) ($8,716,832) ($8,860,474) ($9,013,415) ($9,170,548) ($9,329,897) ($9,494,547) ($9,657,501) ($9,827,953) Net Revenues $4,022,724 $2,150,937 $2,250,363 $2,172,211 $2,089,380 $1,997,881 $1,913,832 $1,820,920 $1,724,259 $1,625,828 $1,522,549 $1,421,424 $1,313,266

Operating Cash Reserves $12,622,724 $14,773,661 $17,024,024 $19,196,235 $21,285,614 $23,283,496 $25,197,328 $27,018,248 $28,742,506 $30,368,334 $31,890,882 $33,312,306 $34,625,572 $34,625,572 Total 12 yr rev Minus Projected CIP Expenses: Valley Fill $0 ($753,501) ($3,854,157) $0 $0 ($1,260,801) ($2,814,107) ($599,757) ($613,551) $0 $0 $0 ($9,895,874) $24,729,698.04 (CIP Funds) Phase 6b $0 ($334,889) ($6,530,655) $0 $0 $0 ($2,814,107) $0 ($7,362,613) $0 $0 $0 ($17,042,264) $17,583,307.60 Operating Cash Reserves Balance 1 Vallley Fill $12,622,724 $14,773,661 $16,270,523 $14,588,577 $16,677,957 $18,675,838 $19,328,869 $18,335,681 $19,460,183 $20,472,460 $21,995,008 $23,416,432 $24,729,698 $24,729,698 2 Phase 6B $12,622,724 $14,773,661 $16,689,134 $12,330,690 $14,420,070 $16,417,951 $18,331,783 $17,338,596 $19,062,855 $13,326,069 $14,848,618 $16,270,042 $17,583,308 $17,583,308

Minus Transfers to Fleet Replacement Reserve ($748,142) ($748,142) ($748,142) ($748,142) ($748,142) ($748,142) ($748,142) ($748,142) ($748,142) ($748,142) ($748,142) ($748,142) ($748,142) ($9,725,852) (Fleet Fund)

Establishing Operational Reserve ("Rainy Day Fund") 25% Minimum Reserve Goal $1,911,224 $2,082,416 $2,072,035 $2,106,151 $2,141,543 $2,179,208 $2,215,118 $2,253,354 $2,292,637 $2,332,474 $2,373,637 $2,414,375 $2,456,988 Annual Allocation to Operating Reserve $0 $2,082,416 $0 $23,735 $35,392 $37,665 $35,911 $38,235 $39,283 $39,837 $41,163 $40,739 $42,613 $2,456,988 (Operating Fund) Operating Reserve Balance EOY $0 $2,082,416 $2,082,416 $2,106,151 $2,141,543 $2,179,208 $2,215,118 $2,253,354 $2,292,637 $2,332,474 $2,373,637 $2,414,375 $2,456,988 $12,546,858 Valley $5,400,468 Phase 6B

Net Revenues $34,625,572

CIP Valley ($9,895,874) Phase 6B ($17,042,264)

Fleet ($9,725,852)

Rainy Day $2,456,988

Unencumbered Cash Reserves Valley $12,546,858 Phase 6B $5,400,468

243 PRO FORMA MODEL, MERCED COUNTY REGIONAL WASTE AUTHORITY, CA SCHEDULE 5 - REVENUES 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

TITLE ACCOUNT 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027 Low MSW Projection REVENUES 60100 Landfill Tipping Fee 11,369,154 10,175,272 10,226,148 10,277,279 10,328,666 10,380,309 10,432,210 10,484,372 10,536,793 10,589,477 10,642,425 10,695,637 10,749,115 60110 Reimbursed Servies 66,517 68,047 69,612 71,213 72,851 74,527 76,241 77,994 79,788 81,623 83,500 85,421 87,386 60120 Other Sales 36,699 37,543 38,407 39,290 40,194 41,118 42,064 43,031 44,021 45,033 46,069 47,129 48,213 Miscellaneous Revenue 95,606 97,805 100,054 102,356 104,710 107,118 109,582 112,102 114,681 117,318 120,017 122,777 125,601 60200 Interest Expense 99,643 101,935 104,279 106,678 109,131 111,641 114,209 116,836 119,523 122,272 125,084 127,961 130,904 Methane Sales 0 0 0 0 0 0 0 0 0 0 0 0 0 OPERATING FUND LOW MSW PROJECTION $11,667,619 $10,480,602 $10,538,501 $10,596,816 $10,655,551 $10,714,713 $10,774,306 $10,834,335 $10,894,806 $10,955,724 $11,017,095 $11,078,925 $11,141,219

TITLE 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027 Medium MSW Projection REVENUES Landfill Tipping Fee 11,369,154 10,276,519 10,430,666 10,587,126 10,745,933 10,907,122 11,070,729 11,236,790 11,405,342 11,576,422 11,750,068 11,926,319 12,105,214 Reimbursed Servies 66,517 68,047 69,612 71,213 72,851 74,527 76,241 77,994 79,788 81,623 83,500 85,421 87,386 Other Sales 36,699 37,543 38,407 39,290 40,194 41,118 42,064 43,031 44,021 45,033 46,069 47,129 48,213 Miscellaneous Revenue 95,606 97,805 100,054 102,356 104,710 107,118 109,582 112,102 114,681 117,318 120,017 122,777 125,601 Interest Expense 99,643 101,935 104,279 106,678 109,131 111,641 114,209 116,836 119,523 122,272 125,084 127,961 130,904 Methane Sales 0 0 0 0 0 0 0 0 0 0 0 0 0 OPERATING FUND MEDIUM MSW PROJECTION $11,667,619 $10,581,848 $10,743,019 $10,906,663 $11,072,819 $11,241,526 $11,412,824 $11,586,754 $11,763,355 $11,942,669 $12,124,739 $12,309,607 $12,497,318

TITLE 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027 High MSW Projection REVENUES Landfill Tipping Fee 11,369,154 10,377,765 10,637,209 10,903,139 11,175,718 11,455,111 11,741,489 12,035,026 12,335,901 12,644,299 12,960,407 13,284,417 13,616,527 Reimbursed Servies 66,517 68,047 69,612 71,213 72,851 74,527 76,241 77,994 79,788 81,623 83,500 85,421 87,386 Other Sales 36,699 37,543 38,407 39,290 40,194 41,118 42,064 43,031 44,021 45,033 46,069 47,129 48,213 Miscellaneous Revenue 95,606 97,805 100,054 102,356 104,710 107,118 109,582 112,102 114,681 117,318 120,017 122,777 125,601 Interest Expense 99,643 101,935 104,279 106,678 109,131 111,641 114,209 116,836 119,523 122,272 125,084 127,961 130,904 Methane Sales 0 0 0 0 0 0 0 0 0 0 0 0 0 OPERATING FUND HIGH MSW PROJECTION $11,667,619 $10,683,095 $10,949,561 $11,222,676 $11,502,604 $11,789,515 $12,083,584 $12,384,989 $12,693,914 $13,010,546 $13,335,077 $13,667,705 $14,008,631

$16,000,000

$14,000,000

$12,000,000

$10,000,000

OPERATING FUND LOW MSW PROJECTION $8,000,000

OPERATING FUND MEDIUM MSW PROJECTION $6,000,000 OPERATING FUND HIGH MSW PROJECTION

$4,000,000

$2,000,000

244 PRO FORMA MODEL, MERCED COUNTY REGIONAL WASTE AUTHORITY, CA SCHEDULE 6 - DEBT SERVICE

Fiscal Year 20111/2012 2012-2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027 TOTAL DEBT Annual Debt Service 2,624,853 2,622,728 $2,622,290 $2,621,490 $2,175,029 $2,173,683 $2,171,242 $2,170,706 $2,175,996 $2,170,924 $2,171,730 $2,173,229 $2,173,365 $2,175,140 $2,171,473 $2,171,471 $28,695,474

TOTAL BY YEAR $2,624,853 $2,622,728 $2,622,290 $2,621,490 $2,175,029 $2,173,683 $2,171,242 $2,170,706 $2,175,996 $2,170,924 $2,171,730 $2,173,229 $2,173,365 $2,175,140 $2,171,473 $2,171,471 $31,317,764

Source: Southwest Securities, Bond Debt Service, Private Placement 2015 Solid Waste Revenue Refunding Bonds, March 30, 2015.

245 PRO FORMA MODEL, MERCED COUNTY REGIONAL WASTE AUTHORITY, CA SCHEDULE 7 - LFG-E

Option A - Assumes SB1122; 8 Year Financing. Back end Revenue Share Option A - Assumes SB1122; 18 Year Financing. More Upfront Revenue

Option C - Assumes No SB1122; 18 Year Financing Assumptions For Models

1. SB 1122 increased revenue from bioenergy projects from $0.089 to $0.127 per kwh. 2. Under the three models LFG revenues range from a low of $320,000 to a high of $795,000 3. PG&E still negoitating languahe with CPUC.

246 PRO FORMA MODEL, MERCED COUNTY REGIONAL WASTE AUTHORITY, CA SCHEDULE 8 - CAPITAL IMPROVEMENTS PLAN

Fiscal Year Capital Improvement Projects Totals 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027 VALLEY FILL Highway 59 Valley Fill Design 400,000 $400,000 Highway 59 Valley Fill Construction - South 3,600,000 $3,600,000 Highway 59 Valley Fill Construction - East/Elevation Expansion 500,000 $500,000 Highway 59 Infrastructure Relocation 1,100,000 $1,100,000 BW Cell 2B Construction and Design 2,400,000 $2,400,000 Regert Groundwater Wells 70,000 $70,000 Landfill Gas System 250,000 500,000 $750,000 TOTAL CAPITAL NEEDS ($2015) $0 $720,000 $3,600,000 $0 $0 $1,100,000 $2,400,000 $500,000 $500,000 $0 $0 $0 $8,820,000 TOTAL CAPITAL NEEDS ($ INFLATED) VALLEY FILL $0 $753,501 $3,854,157 $0 $0 $1,260,801 $2,814,107 $599,757 $613,551 $0 $0 $0 $9,895,874 PHASE 6B Highway 59 Valley Cell Design 600,000 $600,000 Highway 59 6B Cell Construction (Phase 1) - South 5,500,000 $5,500,000 Highway 59 6B Cell Construction (Phase 1) -North 5,500,000 $5,500,000 BW Cell 2B Construction and Design 2,400,000 $2,400,000 Regert Groundwater Wells 70,000 $70,000 Landfill Gas System 250,000 500,000 $750,000 TOTAL CAPITAL NEEDS ($2015) $0 $320,000 $6,100,000 $0 $0 $0 $2,400,000 $0 $6,000,000 $0 $0 $0 $14,820,000 TOTAL CAPITAL NEEDS ($ INFLATED) PHASE 6B $0 $334,889 $6,530,655 $0 $0 $0 $2,814,107 $0 $7,362,613 $0 $0 $0 $17,042,264

$8,000,000

$7,000,000

$6,000,000

$5,000,000

$4,000,000 TOTAL CAPITAL NEEDS ($ INFLATED) VALLEY FILL TOTAL CAPITAL NEEDS ($ INFLATED) PHASE 6B $3,000,000

$2,000,000

$1,000,000

247 PRO FORMA MODEL, MERCED COUNTY REGIONAL WASTE AUTHORITY, CA SCHEDULE 9 - FLEET REPLACEMENT PLAN

s n Yr. 2014 n Cost rimaryecondary or Hours or Annual Serial Number SW Equipment Number Location Make/Model Type Usage:P S /Intermittent Acquisitio Acquisitio Miles asbeginning of Hours/MileY 13/1 age FY 14/15 age FY 15/16 age FY 16/17 age FY 17/18 age FY 18/19 age FY 19/20 age FY 20/21 age FY 21/22 age FY 22/23 age 0 1 2 3 4 5 6 7 8 KPZ03564 384 59 CAT D8T DOZER P 2009 746,431.29 6,594 1839 5 106,633.04 53,571.00 53,571.00 53,571.00 53,571.00 10 53,571.00 53,571.00 12 53,571.00 53,571.00 KPZ01141 383 BW CAT D8T DOZER P 2006 601,041.16 10,213 765 8 85,863.02 85,863.02 10 85,863.02 85,863.02 85,863.02 85,863.02 85,863.02 15 $ 85,863 $ 85, 863 ABJ00624 382 59 CAT D7R LGDOZER S 2005 412,646.52 9,371 229 9 51,580.00 10 51,580.00 51,580.00 51,580.00 51,580.00 51,580.00 51,580.00 51,580.00 17 $ 51,580 COMPACT BXD00441 482 59 CAT 836H OR P 2007 947,327.35 9,224 1818 7 118,415.91 118,415.91 118,415.91 10 118,415.91 118,415.91 118,415.91 118,415.91 118,415.91 15 $ 118,416 AWF00537 483 BW CAT 826H COMPACTO P 2009 796,444.85 2,992 579 5 79,644.48 79,644.48 79,644.48 79,644.48 79,644.48 79,644.48 79,644.48 79,644.48 79,644.48 COMPACT 87XO1382 479 59 CAT 826C OR S 2005 214,791.18 3,337 173 9 JAN00504 594 59 CAT IT 38G LOADER P 2008 246,948.00 9,543 1300 6 24,694.80 24,694.80 24,694.80 24,694.80 10 24,694.80 24,694.80 24,694.80 24,694.80 24,694.80 15 JAN00505 596 59 CAT IT 38G LOADER P 2008 235,133.58 10,030 1300 6 23,513.35 23,513.35 23,513.35 23,513.35 10 23,513.35 23,513.35 23,513.35 23,513.35 23,513.35 15 JAN00516 595 BW CAT IT 38G LOADER P 2008 235,133.58 4,131 692 6 15,675.57 15,675.57 15,675.57 15,675.57 15,675.57 15,675.57 15,675.57 15,675.57 15,675.57 DBC00436 277 59 CAT 623G SCRAPER P 2009 757,224.65 4,475 500 5 63,102.05 63,102.05 63,102.05 63,102.05 63,102.05 10 63,102.05 63,102.05 12 63,102.05 63,102.05 DBC00442 276 BW CAT 623G SCRAPER P 2009 757,224.65 2,388 99 5 50,481.64 50,481.64 50,481.64 50,481.64 50,481.64 50,481.64 50,481.64 50,481.64 50,481.64 DBB00548 275 59 CAT 621G - 8TANKER P 2006 641,857.69 5,040 612 8 91,693.95 91,693.95 10 91,693.95 91,693.95 91,693.95 91,693.95 91,693.95 15 $ 91,694 $ 91, 694 167257 731 59 KOMPTECH GRINDER P 2012 750,000.00 784 509 2 37,500.00 37,500.00 37,500.00 37,500.00 37,500.00 37,500.00 37,500.00 37,500.00 10 37,500.00 2010 FREIGHTLI WATER 1309550 179 BW NER TRK P 2009 111,415.41 7,498 3240 5 11,141.54 11,141.54 11,141.54 11,141.54 11,141.54 10 11,141.54 11,141.54 11,141.54 11,141.54 EXCAVATO JBC00860 621 59 CAT 312D R P 2010 217,611.31 2,577 579 4 10,880.56 10,880.56 10,880.56 10,880.56 10,880.56 10,880.56 10 10,880.56 10,880.56 10,880.56 PB9G00248 652 59 CAT 140M GRADER P 2009 368,068.92 1,971 417 5 24,537.92 24,537.92 24,537.92 24,537.92 24,537.92 10 24,537.92 24,537.92 24,537.92 24,537.92 CHAMPION 200514 651 BW C70A GRADER S 1997 80,974.00 2,385 157 17 8,097.40 40,000.00 40,000.00 40,000.00 40,000.00 40,000.00 40,000.00 40,000.00 40,000.00 TM216001 700 59 RETECH 727SCREEN P 1999 128,163.75 1,583 265 15 18,309.00 18,309.00 18,309.00 18,309.00 18,309.00 18,309.00 18,309.00 22 $ 18,309 $ 18,309 OBEM02380 740 59 WILD CAT 71TURNER S 2003 265,588.29 2,300 27 11 29,509.81 29,509.81 29,509.81 29,509.81 29,509.81 29,509.81 29,509.81 29,509.81 29,509.81 20 CONVEYO 11846 750 59 McCLOSKEYR S 2003 57,154.80 2,776 300 11 6,350.53 6,350.53 6,350.53 6,350.53 6,350.53 6,350.53 6,350.53 6,350.53 6,350.53 20 1288378 181 59 MECHANIC TTRUCK P 2008 158,667.26 65,291 1000 6 11,333.37 11,333.37 11,333.37 11,333.37 10 11,333.37 11,333.37 11,333.37 11,333.37 11,333.37 1288377 180 59 EQUIP. SERVTRUCK P 2008 198,196.43 6,400 1575 6 14,156.88 14,156.88 14,156.88 14,156.88 14,156.88 14,156.88 14,156.88 14,156.88 14,156.88 1236563 8 BW FORD SERVICE TRUCK S 2012 15,647.42 8,030 804 2 1,955.92 1,955.92 1,955.92 1,955.92 1,955.92 1,955.92 1,955.92 1,955.92 10 $ 1,956 3HTJGTKT1GN181204 161 59 CAT ROLL OTRUCK P 2015 175,464 4700 8,773.24 1 8,773.24 8,773.24 8,773.24 8,773.24 5 8,773.24 8,773.24 8,773.24 385 59 CAT D7E DOZER S 2015 700,497 938 35,024.85 1 35,024.85 35,024.85 35,024.85 35,024.85 5 35,024.85 35,024.85 35,024.85 9,119,156.08

Annual Replacement Cost : ## $ 885,071 $ 907,709 $ 907,709 $ 907,709 $ 907,709 $ 907,709 $ 907,709 $ 907,709 $ 907,709 Assumed Inflation Rate = 2.3% Replacement Cost (Future Dollars): ## $ 885,071 $ 907,709 $ 950,000 $ 970,000 $ 990,000 $ 1, 020,000 $ 1, 040,000 $ 1, 060,000 $ 1, 090,000

Indicates rebuild schedule

Indicates replacement schedule Year 1 2 3 4 5 6 7 8

Adjusted to reflect actual replacement cost.

Adjusted for a new or used replacement

248 PRO FORMA MODEL, MERCED COUNTY REGIONAL WASTE AUTHORITY, CA SCHEDULE 9 - FLEET REPLACEMENT PLAN

33/34

FY 23/24 age FY 24/25 age FY 25/26 age FY 26/27 age FY 27/28 age FY 28/29 age FY 29/30 age FY 30/31 age FY 31/32 age FY 32/33 age 20 Yrs FY age Total 9 10 11 12 14 15 16 17 18 19 20 $ 53,571 $ 53,571 $ 53,571 $ 53,571 $ 85,863 $ 85,863 $ 85,863 $ 85,863 $ 51,580 $ 51,580 $ 51,580 $ 51,580

$ 118,416 $ 118,416 $ 118,416 $ 118,416 79,644.48 15 $ 79,644 $ 79,644 $ 79,644

$ 24,695 $ 24,695 $ 24,695 $ 24,695 $ 23,513 $ 23,513 $ 23,513 $ 23,513 15,675.57 15,675.57 15,675.57 15,675.57 15,675.57 20 63,102.05 63,102.05 63,102.05 17 $ 63,102 50,481.64 50,481.64 50,481.64 50,481.64 50,481.64 50,481.64 20 $ 91,694 $ 91,694 $ 91,694 $ 91,694 37,500.00 37,500.00 37,500.00 37,500.00 37,500.00 37,500.00 37,500.00 37,500.00 37,500.00 20

11,141.54 15 $ 11,142 $ 11,142 $ 11,142

10,880.56 10,880.56 10,880.56 10,880.56 10,880.56 10,880.56 10,880.56 20 24,537.92 15 24,537.92 24,537.92 24,537.92 24,537.92 24,537.92 20

40,000.00 27 40,000.00 40,000.00 40,000.00 $ 18,309 $ 18,309 $ 18,309 $ 18,309 $ 29,510 $ 29,510 $ 29,510 $ 29,510

$ 6,351 $ 6, 351 $ 6,351 $ 6,351 11,333.37 11,333.37 11,333.37 11,333.37 11,333.37 20 14,156.88 14,156.88 14,156.88 14,156.88 14,156.88 20 $ 1,956 $ 1,956 $ 1,956 $ 1,956 8,773.24 8,773.24 10 8,773.24 8,773.24 8,773.24 8,773.24 8,773.24 15 8,773.24 8,773.24 8,773.24 8,773.24 19 35,024.85 35,024.85 10 35,024.85 35,024.85 35,024.85 35,024.85 35,024.85 15 35,024.85 35,024.85 35,024.85 35,024.85 19

$ - $ - $ 907,709 $ 907,709 $ 907,709 $ 907,709 $ 208,364 $ 167,198 $ 92,179 $ 81,298 $ 81,298 $ 43,798 $ 43,798 $ 12,495,517 $ 1,110,000 $ 1,140,000 $ 1,170,000 $ 1,190,000 $ 290,000 $ 240,000 $ 130,000 $ 120,000 $ 120,000 $ 70,000 $ 70,000 $ 14,562,780 Total Balance Need $ 12,637,709 $ 3,660,000 $ 8,977,709 12 $ 748,142.45

9 10 11 12 13 14 15 16 17 18 19 20

249 ITEM 20

250

PH: 209.723.4481 FAX: 209.384.3109 7040 N. Highway 59 Merced, CA 95348

ITEM 20

DATE: August 14, 2020

TO: Merced County Regional Waste Management Authority

FROM: Stacie Guzman, Executive Director

RE: ACTION: Proposed Agenda Item for Consideration – Landfill Disposal Fees

SUMMARY

Director Mike Villalta requested an item be placed on the August agenda to discuss the Landfill Disposal Fees, also referred to as “tipping fees.” Per the Merced County Association of Governments (MCAG) agenda item request policy, such requests are to be placed on the next board meeting agenda “at which time the Governing Board will consider whether there is a majority consensus to have staff expend time on the issue and to have it considered at a future meeting.”

DISCUSSION

All seven jurisdictions bring their garbage, or municipal solid waste (MSW), to one of the two Authority landfill sites: Billy Wright landfill or Highway 59 landfill. The tip fee revenue from MSW generates the funds necessary to make the Solid Waste Bond payment as agreed to by the jurisdictions in the Joint Powers Agreement (JPA).

Attached are the Landfill Disposal Fees and Charges for the Merced County Regional Waste Management Authority that were adopted July 21, 2011. The fee schedule represented in Section 2.0 – Municipal and Franchise Fees in the attached is also provided below.

The fees are based on a dollar rate per ton, intended to account for differences in the cost to transport material from each member agency to the landfills, and are charged to municipal and franchised refuse collection vehicles at both the Hwy 59 and Billy Wright landfill facilities. The rate per ton originally became effective on July 1, 1998; then was increased to account for the Solid Waste Bond; and has not changed since July 1, 2013.

251

PAST ACTION TAKEN

March 16, 2017 – The Agenda Item Request Policy was adopted by the Governing Board.

REQUESTED ACTION

With an affirmative vote of the board, direct staff on the preferred next steps.

ATTACHMENT

Exhibit A – Landfill Disposal Fees and Charges (July 21, 2011)

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