Authorize Submittal of an Annual Franchise Report to the City of Anaheim

Home , Anaheim Packing House, Anaheim Plaza, Anaheim Resort, Downtown Anaheim

DATE: JANUARY 29, 2020

TO: ATN BOARD OF DIRECTORS FROM: DIANA KOTLER, EXECUTIVE DIRECTOR

RE: AGENDA ITEM #15

RECOMMENDATION: Authorize submittal of an annual franchise report to the City of Anaheim

DISCUSSION: On May 14, 2019, Anaheim City Council adopted Ordinance 6464 approving a non-exclusive franchise to the Anaheim Transportation Network (ATN).

Every year ATN is required to submit to the City of Anaheim a thorough review of its franchise, its services, development(s) in the community, inventory of bus stop locations and an overview of transit industry’s direction for future service and technology. This annual administrative report provides an opportunity to ATN and the City of Anaheim to review local needs for public transit services to meet transportation needs of the community we serve.

The annual report provides a summary of ATN service metrics while addressing prior-year’s accomplishments and outlining vision for future service delivery framework.

A copy of full report is provided as Attachment 1.

BACKGROUND INFORMATION:

The relationship between the City of Anaheim and Anaheim Transportation Network (ATN) goes back to the formation of ATN in 1995 as part of the Anaheim Resort Specific Plan. Since initial formation of ATN, the relationship strengthened, and analogous transportation initiatives and requirements were added to other Specific Plans and environmental documents throughout Anaheim to support transportation programs and services throughout Anaheim.

On May 5, 2011, ATN applied to amend the original franchise application to provide public transportation services within the city of Anaheim and other areas within the city. Pursuant to the procedures set forth in Article XIV of the Charter of the City of Anaheim, on May 17, 2011, the City Council adopted Resolution No. 2011-068 approving the amended franchise application. This allowed ART to provide transportation services within the limits of the city of Anaheim, including The Anaheim Resort®, The Platinum Triangle™, downtown and other areas in the city designated by the City Manager; provided that a minimum of 98 percent or more of the annual vehicle trip miles are operated within City of Anaheim limits. Subsequently, the 2018 franchise application approval was done as a 12-month administrative extension of the ATN Franchise Agreement.

Section 1400 of Article XIV of the Charter of the City of Anaheim establishes procedures for the award of franchises by the City; provides that any person, firm or corporation furnishing the City or its inhabitants with transportation may be required by ordinance to have a franchise therefor; and further provides that the City Council is empowered to grant such franchises and to establish additional procedures and terms and conditions of such grants.

DATE: JANUARY 30, 2019

TO: ATN BOARD OF DIRECTORS

FROM: EXECUTIVE DIRECTOR

RE: AGENDA ITEM #18

RECOMMENDATION: Authorize Executive Director to submit a Franchise Application to the City of Anaheim to amend and renew ATN’s Franchise Operating Standards for public transportation services

DISCUSSION: ATN has an opportunity, every seven years, to conduct a thorough review of its franchise, its services, development(s) in the community, and industry direction and request a franchise agreement amendment commensurate with local needs to ensure longevity of ART services and ATN’s ability to meet transportation needs of the community it serves.

The upcoming franchise application aims to strengthen ATN’s stature and ability to provide ART service. This requests for amendment of the ATN’s franchise proposes to build on the current guiding principles of transportation services with attention to customer service and constituent need while proposing to expand to include flexibility to allow for future services such as Mobility as a Service models, mobile payment options and real-time information availability and MicroTransit on-demand delivery models. Traditional transit will continue to be the backbone of ATN’s service, while allowing for industry and consumers guide ATN for future needs of the community to:

1. Consolidation of ATN facilities to enhance safety and security;

2. Provide transportation/mobility options to meet or exceed prescribed service standards;

3. Enhance passenger experience, exceed the expectations of a changing marketplace including next-generation mobility technologies and mobility solutions; 4. Monitor and best utilize City assets, including bus stops and curbs, specifically in The Anaheim Resort® Area; 5. Address traffic mitigation measures and the reduction of vehicle miles traveled (VMTs) and carbon footprint; 6. Meet and exceed air quality mitigation measures including the transition to zero emission/electrification of fleet operations (in advance of CARB requirements)

Agenda Item 18 ATN Franchise Application Page 2 of 3 ______

The franchise application outlines specific operating standards and recommendations for provision of transportation services in the City of Anaheim. Should the City of Anaheim decide to apply these operating standards on other qualified transportation operators.

With the approval by the ATN Board of Directors, ATN staff will formally submit franchise application to the City of Anaheim in February 2019. Once the franchise agreement is formally submitted to the City of Anaheim, the document will go through a formal approval process outlined below:

. 1st Council Meeting (March) - Resolution declaring the City Council’s intention to hold a public hearing and to grant a franchise;

. Public hearing 20 to 60 days from adoption of the initial resolution;

. The Anaheim City Clerk will publish adopted Resolution in the Anaheim Bulletin twice – once a week for two successive weeks, within 15 days of passage of Resolution;

. 2nd Council Meeting (April/May) - Public Hearing for Introduction of Ordinance;

. If the City Council determines any changes should be made in the terms and conditions upon which the franchise is proposed to be granted, a new resolution of intention shall be adopted, and another public hearing shall be held;

. 3rd Council Meeting (May) - Adoption of Ordinance

. Ordinance Effective 30 days later (June 2019)

. Within 10 days after adoption of the ordinance, applicant shall submit franchise fee and written acceptance of the franchise to the City Clerk’s Office

ATN, in coordination with its Government Affairs consulting team, is beginning to meet with City of Anaheim policymakers and stakeholders. These meetings will concentrate on gathering input and comments prior to consideration by the entire City Council.

Agenda Item 18 ATN Franchise Application Page 3 of 3 ______

BACKGROUND INFORMATION:

An opportunity to further address public need for transportation services was identified in the City of Anaheim Charter, Section 1400, Article XIV. Upon consultation with the City of Anaheim in 2004, ATN decided to submit a franchise application, and was awarded a non-exclusive Section 1400 of Article XIV of the Charter of franchise agreement to operate ART service. the City of Anaheim establishes procedures for the award of franchises by the City; On May 5, 2011, ATN applied to amend the provides that any person, firm or corporation original franchise application to provide public furnishing the City or its inhabitants with transportation services within the city of transportation may be required by ordinance Anaheim and other areas within the city. to have a franchise therefor; and further Pursuant to the procedures set forth in Article provides that the City Council is empowered XIV of the Charter of the City of Anaheim, on to grant such franchises and to establish May 17, 2011, the City Council adopted additional procedures and terms and Resolution No. 2011-068 approving the conditions of such grants. amended franchise application. This allowed ART to provide transportation services within the limits of the city of Anaheim, including The Anaheim Resort®, The Platinum Triangle™, downtown and other areas in the city designated by the City Manager; provided that a minimum of 98 percent or more of the annual vehicle trip miles are operated within City of Anaheim limits. Subsequently, the 2018 franchise application approval was done as a 12-month administrative extension of the ATN Franchise Agreement.

NNA

Anaheim Transportation Network

2019 Annual Stakeholder Report

Anaheim Transportation Network 2626 East Katella Avenue Anaheim, CA 92806 www.RideArt.org 2019 ATN STAKEHOLDER REPORT

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Mission Statement The Anaheim Transportation Network’s (ATN) mission is to enhance transportation options by delivering reliable and efficient transportation solutions. Our commitment to customers consists of integrity, customer service, can-do spirit, communication and partnerships.

ATN provides a menu of transportation services for the general public in the Orange County region. These programs include Anaheim Resort Transportation (ART), a network of 22 interchangeable fixed routes and MicroTransit services, aka, Free Rides Around the Neighborhood – FRAN. ATN, through its accessible menu of mobility options serves diverse and popular destinations within The Anaheim Resort® District, Center City, Platinum Triangle and other areas of Orange County.

About ATN The Anaheim Transportation Network (ATN) provides a menu of transportation services for the general public in the Orange County region. These programs include Anaheim Resort Transportation (ART), a network of fixed routes and on-demand MicroTransit service Free Rides Around the Neighborhood – FRAN. Our goal is to provide transportation programs and services to foster a positive environment for everyone who lives, works, or visits the greater Anaheim area.

FY 2019 Statistics

2018 2019 Change Total Ridership 9,631,356 9,448,810 -1.90% Total Revenue Miles of Service 1,559,277 1,520,860 -2.46% Total Revenue Hours of Service 242,280 235,426 -2.83% Total Fleet Size 82 92 12.20%

ATN Environmental Policy Environmental responsibility is at the core of the Anaheim Transportation Network’s (ATN) purpose and responsibility to the community in an effort to mitigate impacts of transportation services and programs on the natural environment and public “The reality about resources. transportation is that it's

ATN, based on its founding framework, strives to conserve future-oriented. If we're energy; to reduce greenhouse gas emissions; and to encourage planning for what we use of public transportation to raise public consciousness and have, we're behind the awareness in support of environmental sustainability. curve”

Our ongoing and future initiative build upon the foundational promise to the Anaheim constituency of environmental preservation and consciousness. Appendix 1 (Environmental Impact White Paper) and Appendix 2 (Electrify Anaheim Initiatives), represent ATN’s commitment to current and future programs to advance environmental initiatives and priorities.

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Chairman’s Message

On behalf of the Anaheim Transportation Network’s (ATN) Board of Directors, I am pleased to share with our 2019 Annual Stakeholder Report. Over the past year we have provided transportation to over 9.6 million residents, commuters, and visitors.

This has been an exciting year for ATN. In May 2019, Orange County residents celebrated the grand opening of Star Wars Galaxy Edge attraction at Disneyland® Resort, welcomed thousands of international travel media and buyers at the annual IPW gathering at the Anaheim Convention Center and are gearing up to open over 2000 new hotel rooms for The Anaheim Resort®. These new venues, attractions and destinations provide thousands of construction and on-going jobs for our residents and enhance economic strength and stability for our region.

As we look into 2020, we will concentrate on further environmental stewards by opening a new state-of-the art Zero Emission Bus (ZEB) operations and administration facility and converting of 58% of ATN’s fleet to zero TRANSIT BECOMES emission. INTEGRATED WITH THE DEVELOPMENT

New technology initiatives, including a new “As a public transit agency, ATN is working with developers up front to plan for transit mobile ticketing, real-time passenger opportunities. This type of planning information systems, trip planning and single doesn't exist anywhere else. With this payment options, will continue to provide our proactive approach to management of guests with the ability to use transportation and transportation services, we incorporate mobility programs at their fingertips. transit. It is not just an appendage on the roadway or a non‐descriptive bus stop. Transit becomes integrated with the ATN looks forward to continuing to service the development. I know this is a paradigm community and providing our guests with shift… I know this is revolutionary… but we superior quality of service. have to look beyond the obvious, stop living in our development bubbles, and begin to provide mobility solutions to the traveling public " Paul Sanford Paul Sanford ATN Chairman of the Board Paul Sanford CEO, Wincome Hospitality ATN Chairman

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MicroTransit Service – FRAN

ATN started 2019 on January 25th with the introduction of a new service delivery model – MicroTransit – aka Free Rides around the Neighborhood FRAN for CtrCity Anaheim.

Center City is roughly delineated by a 0.5-mile diameter circle centering on the intersection of S Clementine Street and Center Street Promenade. The area is walkable with sidewalks, intersection crosswalks and traffic controls, and pedestrian amenities. Current trip generators in CtrCity include: CY 2019 Statistics ▪ Central Library ▪ City Hall complex 2019 ▪ Downtown Community Center Total Ridership 40,881 ▪ Farmers Park Total Revenue Miles of Service 17,529 ▪ Muzeo Museum and Cultural Center Total Revenue Hours of Service 6,135 ▪ Packing District Average Wait Time 2:12 ▪ Rinks Anaheim Ice Arena Average Ride Time 2:49 ▪ Senior Center ▪ Town Square Shopping Center ▪ Brewery District / Leisuretown 2020 initiatives include FRAN service expansion to Center City neighborhoods, and pending funding approval to West Anaheim. Proposed FRAN service expansion of stops for the neighborhoods is provided as Appendix 3.

Franchise Ordinance Adoption ATN, Chairman of the Board On May 21, 2019, Anaheim City Council approved Ordinance 6464 authorizing ATN to continue to provide public transportation services for the residents, visitors and businesses of the City of Anaheim.

The franchise amendment was approved based on service standards that best meet the needs of not only the City of Anaheim but also those of the key stakeholder constituencies. Such needs include but not restricted to:

✓ Sensitive to, and compliance with, safety and security needs of The Resort Area® in general and Disneyland® Resort, specifically;

✓ Consolidation of transportation/mobility options;

✓ Ability to provide an enhanced guest experience, exceed the expectations of a changing market including next-generation mobility technologies and mobility solutions;

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✓ Ability to control, monitor and best utilize City assets including bus stops in The Anaheim Resort® Area;

✓ Ability to address traffic mitigation measures and the reduction of vehicle miles traveled (VMTs) and reduction in the City’s carbon footprint; and

✓ Ability to address air quality mitigation measures including the transitioning to zero emission/electrification of fleet operations (in advance of CARB requirements).

ART Showcased at International IPW at Anaheim Convention Center As the Anaheim Convention Center opened its doors to over 8,000 international media and travel buyers, ATN’s Anaheim Resort Transportation (ART) service was at-the-ready to welcome IPW 2019 attendees and to showcase Anaheim’s transportation services.

During five days of IPW, ART served attendees between properties, to evening events, IPW nights destinations, ARTIC, Center City and opening of Star Wars Galaxy’s Edge at Disneyland® Resort.

ART Continue to Serve Disneyland® Resort

ATN negotiated another five years of public transportation services for Disneyland® Resort connecting Toy Story Transportation Center and East Esplanade. Over 4.2 million passengers continue to use this service.

Council Action for Land Purchase & Sale Agreement 42 New Zero Emission Buses (ZEB) and Facility with Solar MicroGrid

On July 25, 2019, City of Anaheim and ATN signed a Purchase and Sale (PSA) agreement to construction new ATN facilities at Claudina Avenue and Manchester Sliver. New facilities will accommodate new state-of-the-art charging facility to accommodate full electrification of ART fleet, which will begin with ElectrifyAnaheim initiative. ElectrifyAnaheim will bring 42 new ZEBs and new charging, maintenance and administrative facilities. ATN was the only agency in the State of California to receive federal LoNo funds toward this effort.

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ATN Service Delivery Framework

ART services are comprised of twenty-three (23) interchangeable routes operating 365 days per year:

✓ Core ART -- 20-minute headway schedule frequency; ✓ Fixed Routes – Printed scheduled operations; and ✓ Circulator Service – Connection of the area’s parking facilities ✓ MicroTransit Service – FRAN for CtrCity Anaheim

Daily service begins 90 minutes before area attractions open and concludes 30 minutes after closing. For example, during the “peak” summer season, service typically runs from 6:00 am through 12:30 AM seven days a week. Disneyland® Resort’s East Esplanade area, also known as Main Transportation Center, provides assigned passenger priority pick-up and drop-off locations and connectivity along all ART routes. Appendix 4 presents an inventory of ART bus stops including reference to route, properties served, location and notation of amenities. Appendix 5 shows the latest ART System Map – Winter 2020.

ATN provides jobs to over 50 direct employees and contract services through Parking Company of America for Operators. In 2013, contractors unionized and are represented by Teamsters Local 952. ATN’s organizational structure is presented in Exhibit 1.

Exhibit 1

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ATN Financial Stability

Two (2) years of audited financial statements, fiscal years (FY) 2018 and 2018, are presented in Appendix 6.

ATN Fleet

ATN owns an active fleet of 82 buses and 10 Polaris GEM/FRAN vehicles. All buses are equipped with SPX Genfare fare boxes and AVL/GPS vehicle location system. All vehicles are compliant with the American with Disabilities Act (ADA) requirements. A list of the ATN bus fleet is provided in Exhibit 2. Of note is the electrification of the ATN fleet of fixed-route transit buses in advance of the California Air Resources Board’s (CARB) proposed rule to achieve full zero emission fleets by 2024.

Forty-two all electric buses will be in operation by December 2020. Further, in compliance with Board direction, the electrification of the fleet will ensure compliance with the regulatory environment ranging from Disneyland’s Resort’s® strategic direction, to federal (including airports), state, regional (SCAQMD), and local (Franchise Ordinance).

The ten Polaris GEM/FRAN vehicles are 6-passenger, all electric, open-air carts providing MicroTransit service in CtrCity. Complementing the electrification of the fleet, ATN is advancing an alternate energy microgrid to sustain operations in emergency scenarios.

Exhibit 2 – ATN Fleet

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ART Initiates – An Eye of the Future ATN continues to evolve its role as a provider of mobility services. With an eye on the future, it is important to recognize the evolving development landscape and changing market forces without losing focus on the core markets served.

ART shall continue to concentrate on serving the participating hospitality properties, parking facilities, transportation hubs, and entertainment areas within The Anaheim Resort® and Platinum Triangle™ areas as well as CtrCity Anaheim. The target audiences for this market are the visitors, residents, commuters and employees.

ATN is also looking into development for a more traveler-centric, transportation system-of- systems approach, providing improved mobility options to all travelers and users of the system in an efficient and safe manner. Through Mobility on Demand (MOD) initiatives, ATN needs to be able to provide offers convenient, affordable, and, in the case of MicroTransit, more sustainable alternatives to driving within congested environments. ATN must be position to offer transportation and mobility services that are easier to access, are available in neighborhoods, provide single payment options and complete trip planning. ATN is planning to forge a new mobility partnership in 2020 to further MOD future initiatives.

By focusing on the complete transportation and mobility ecosystem, ATN is working to develop, for Anaheim residents, employees and visitors a mobility marketplace that produces minimum carbon footprint, available through mobile applications and link all transportation choices through one mobile application.

To achieve these initiatives, ATN Board of Directors established a robust Legislative Priorities Program (Appendix 7).

With the above and future initiatives, such as the Mayor’s Transportation Task Force, ATN is well positioned to lead the efforts for future provision of transportation and mobility services for the City of Anaheim.

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ATN Board of Directors

Paul Sanford Brian Sanders Bill Cleaver Wincome Hospitality Angels Baseball Holiday Inn Anaheim Theme Chairman Park Charles Harris Fred Brown Visit Anaheim Bharat Patel Desert Palm Hotel & Suites Castle Inn & Suites Vice Chairman Ron Kim Prospera Hotels Sarah Monks Carrie Nocella Hilton Anaheim Disneyland® Resort Dan Lee Secretary City of Anaheim Shaheen Sadehi Anaheim Packing House Merit Tally Phil Aldaz Honda Center Anaheim Marriott Treasurer

ATN STAFF

Diana Kotler Executive Director

Fred Whitaker Legal Counsel Cummings & White LLP

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Appendix 1 Environmental Impacts White Paper

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2626 E. Katella Avenue, Anaheim, CA 92806 RideART.org

ANNUAL ENVIRONMENTAL BENFITS

 Anaheim Resort® District and surrounding areas

Every year, over 9.5 million  16 million pounds of carbon dioxide that enter residents, visitors, and employees doesn’t use ART to connect with local our atmosphere

theme parks, sport venues, shopping centers, hotels,  3.7 million automobile trips eliminated annually restaurants, and ARTIC regional

ART delivers important  72,000 automobile miles that are not driven in Anaheim environmental and quality of live each and every day beneﬁts

ART provides direct beneﬁts in reducing Anaheim’s carbon  Over 807,000 gallons of fuel displaced each year

million pounds of CO2 based GHC emissions each year.

Imagine how much worse Anaheim’ .

considering that 10,000 vehicles -- lined up end-to-end – represent a line of traﬃc 32 miles long. It is arguable that

streets, each day, ART is unique amongst public agencies in Southern California. With ART’s adult transit dependency on the order gridlock. of 3%-9%, ART riders typically either own a car or, if visitors, have access to Anaheim city, an automobile, are choosing ART for -oriented ART public its convenience, aﬀordability and Taaccp heessrei btoili atyd.d a caption transit system.

Climate Change & Traffic Congestion Mitigation Benefits

Anaheim Resort Transportation Introduction – The purpose of this paper is to describe, using quantitative measures of effectiveness to the extent feasible, the air quality and traffic congestion mitigation benefits of Anaheim Resort Transportation (ART). ART is the public transportation system operating within The Anaheim Resort™ District and surrounding areas. Every year, over 9.5 million residents, visitors, and employees use ART to connect with local destinations, job centers, theme parks, sport venues, shopping centers, hotels, restaurants and the ARTIC regional transportation center. As described herein, ART not only offers visitors, employees and residents a convenient, low-cost transportation option, but delivers important environmental and quality of life co-benefits.

Summary of Environmental Benefits – The following sections of this paper discuss in greater detail the environmental benefits of ART public transit service. It will be shown that ART achieves – on an annual basis – a reduction in Greenhouse Gas Emissions (GHG) on the order of 7,325 metric tons. That’s greater than 16 million pounds of carbon dioxide air pollution that doesn’t enter the atmosphere. This reduction is based on 9.5 million riders who use the ART network to access major resorts and venues in The Anaheim Resort® area in lieu of using automobiles. As discussed below, ART eliminates, or reduces vehicle miles traveled, on the order of 3.7 million automobile trips annually. That equates to over 10,000 automobiles each day that aren’t contributing to traffic congestion in-and-around Anaheim’s numerous high demand locations and employment centers. Those automobile trips – the one’s that don’t occur – avoid the air pollution emissions equivalent of greater than 26 million automobile miles, or approximately 72,000 automobile miles that are not driven in Anaheim each and every day. Given that 100% of the ART fleet operates exclusively on alternative fuel, including zero-emission electric, the use of ART displaces over 807,000 gallons of gasoline fuel each year.

Technical Approach – The methodologies used to quantify the GHG benefits of ART are those approved by the California Air Resources Board (ARB) for the assessment of public transit systems. The technical approach used in this analysis is comprised of the following tasks: ▪ Characterize the ART alternative fuel public transit service and bus fleet, including tabulation of the annual miles operated for each vehicle in the ART revenue fleet; ▪ Compute the emissions generated for each vehicle in the ART revenue fleet using the most current ARB methodologies and emissions factors; ▪ Analyze the most and complete ART ridership demographic data to establish the automobile usage that is avoided and/or reduced vehicle miles traveled by the availability of the ART transit system. This includes a quantification of automobile trips avoided as well as the miles associated with each avoided trip; ▪ Using the most current ARB model, EMFAC 2014, calculate the automobile air pollutant emissions that are avoided by using ART.

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The difference in automobile GHG emissions that would have occurred if not for the availability of ART, minus the emissions generated by the ART alternative fuel transit fleet, yield the net GHG emissions reduced.

Characterization of the ART Revenue Vehicle Fleet – Operations data for the current fiscal year was analyzed to determine the GHG footprint of the ATN fleet. The ART revenue fleet is comprised of 82 vehicles. Of these, 27 are cut-away vehicles, three are mid-size transit-style buses, and 52 are full-size urban transit buses. 100% of the ART fleet operates on low-carbon alternative fuel, including compressed natural gas (CNG), liquefied natural gas (LNG), liquefied petroleum gas, (LPG, i.e., propane), and zero emission battery electric. The illustration below shows the composition of the ART revenue transit fleet. Composition of the ART Transit Vehicle Fleet

Number of Fuel Type Vehicles Compressed Natural Gas 21 Liquified Natural Gas 43 Liquified Propane Gas 9 Zero Emission Pure Electric 4 Total Fleet 77

The ART transit fleet accrues on the order of 1.65 million miles annually. To calculate the GHG emissions generated by the ART fleet, the emissions contribution by each individual bus was assessed and then summed to determine ART’s total transit service GHG footprint.

The emission rates corresponding to each bus engine in the ART fleet was determined by querying the ARB Executive Order database of engine emissions certifications. Total annual GHG emissions per transit vehicle are calculated based on the annual miles each bus travels. Overall, the ART revenue fleet emitted approximately 2,103 metric tons, or approximately 4.6 million pounds of GHG emissions in the most recently completed fiscal year.

Quantification of Automobile Emissions Avoided by Using ART Transit – To determine the GHGs that would have been emitted had ART riders used their personal or rental automobiles in lieu of ART transit service, ART conducted a comprehensive survey of rider demographics and travel behavior. This survey was used to derive the estimated number of automobile trips avoided, vehicle miles traveled reduced and substituted with ART transportation services.

ART is unique amongst public transit agencies in Southern California, especially when viewed in the context of two key metrics – overall ridership trends and transit dependency. In Southern California, traditional public transit bus ridership is declining. This decline can be attributed to several factors; however, most relevant is the improvement in the overall economy since the Great Recession of 2008.

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In contrast, ART ridership has experienced a steady increase in demand during the same economic recovery period. Interestingly, ART enjoys an inverse relationship to a growing economy as compared to traditional public transit. As the economy improves, more families have the ability to visit the destinations ART serves - resorts, theme parks, major sports venues, etc. And because parking is often limited or increasingly expensive at these attractions, the direct, cost conscience service offered by ART is increasingly the preferred transportation solution for visitors and residents alike. Even though transit ridership shows a decreasing trend, nationwide, Anaheim’s local economy continues to experience growth, thus expanding its job market, which in turn is the sources for the increase in ART ridership.

A second unique characteristic of ART compared to traditional public transit bus service is that ART riders have a very low rate of transit dependency. Transit dependent riders do not own or have limited access to private automobiles; as such, their mobility is dependent on the availability of public transportation. For transit dependent individuals, public transportation provides an essential mobility benefit; however, it should be understood that mobility and air quality are at times conflicted – there can be no air quality benefit assigned to transit trips that do not eliminate the use of a higher polluting transportation mode. Whereas traditional public transit in southern California has an adult ridership transit dependency on the order of 40% or greater - meaning that 4 out of ten riders do not have regular access to a car – ART’s adult transit dependency is on the order of 3% - 9%. ART riders typically either own a car or, if visitors, can afford to rent a car while vacationing in the Anaheim Resort. Although they have access to an automobile, for convenience a growing number of Anaheim residents and visitors are choosing ART to get them to and from their destinations.

How many automobile trips does ART eliminate and/or reduces vehicle miles traveled? According to the ART demographic study, approximately 65% of 9.5 million annual ART riders are adults. Approximately 94% have access to a car – either as an Anaheim resident or visitor to the destination with the means to access a rental car, but due to the design characteristics of ART service, with focus on passenger needs, frequency, convenience and affordability, ART patrons choose to use ART instead of their personal automobile.

The ART ridership demographic analysis further breaks down ridership into “parties”, i.e., individual riders, families with children, or groups of adult riders. The availability of ART transportation services eliminates and/or reduces vehicle miles traveled from over 3.7 million automobile trips from Anaheim roadways each year. These trips account for over 26 million annual automobile miles not driven in the City of Anaheim.

ART’s impact on reducing Anaheim’s carbon footprint is significant. The trips and automobile miles that were avoided reduced Anaheim’s GHG emissions – according to ARB’s EMFAC 2014 emissions model – by over 9,427 metric tons. This is partially offset by the GHG emissions generated by ART’s fleet of low carbon

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fuel buses; however, the net GHG reduction that can be attributed to ART is over 7,325 metric tons, or over 16 million pounds of GHG emissions avoided annually.

In addition to direct reductions in GHG emission, the amount of gasoline that is displaced – not burned – is over 807,000 gallons annual.

It is important to note that ART also serves the Anaheim “ART provides a direct benefit in reducing Regional Transportation Intermodal Center, or ARTIC. In Anaheim’s carbon footprint, eliminating this way, ART provides essential connectivity between over 16 million pounds of CO2 based GHG other forms or public transit, including Metrolink and emissions each year”. Amtrak rail service as well as the Orange County Transportation Authority’s regional bus service. This connectivity to other forms of public transit allows riders to use whatever form is most convenient and then use ART to provide “last mile” connectivity to their Anaheim destination. This not only serves tourists but also the significant number of riders who are employed by Anaheim attractions. First mile/last mile connectivity is an essential element for public transit agencies that want to attract non-transit dependent rider. As such, ART supports the other transit agencies by making their traditional transit and rail services a more attractive mode as riders can depend on ART to get them to their ultimate destination.

Reduction in Local Traffic Congestion – In addition to the direct benefits of reduced GHG emissions and gasoline fuel consumption, ART provides other transportation-related benefits to the City of Anaheim, specifically as it pertains to traffic congestion.

Los Angeles-Long Beach-Anaheim, CA - Annual hours lost per commuter: 80 - Total annual hours of delay: 622.5 million - Annual cost per commuter: $1,711 - Total congestion cost: $13.3 billion

The 2015 Urban Mobility Scorecard1, a report released jointly by the Texas A&M Transportation Institute, and Inrix, a traffic data collection company, identified the Los Angeles – Long Beach - Anaheim urban area as having the second worst traffic congestion in the nation – a close second behind the Washington DC region. Half of the 20 worst roads for traffic in the country are located here, and this three-city region has the distinction of having the nation’s longest rush hour – nearly eight (8) hours on a typical day.

Imagine Anaheim’s traffic congestion would be with an additional 10,000 cars each day, especially considering that 10,000 vehicles - lined end-to-end - represents a line of traffic 32 miles long. The availability of ART service, further indicates that regional growth can be sustained through managed mobility needs. With the projected increase of visitor attendance by 20,000 and employment growth of

1 https://static.tti.tamu.edu/tti.tamu.edu/documents/ums/congestion-data/los-angeles.pdf

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6,000 jobs by year 2019, a unique partnership between the City of Anaheim planning efforts and long- term environmental impacts of the Specific Plan Mitigation Monitoring Program and ART system, ensure that Anaheim, as a major destination city, can continue to develop as a robust, major destination, employment center and an epicenter of tourism and hospitality industry for the State of California.

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Appendix 2 Electrify Anaheim Initiatives

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Be Part of Cutting Edge Innovation!

ART Fast Facts • 81 Vehicle Fleet; 50% will be Zero-Emission in 2019 • 9.5 Million Annual Ridership • Subject to FTA Tri-Annual Review • Transit Asset Management Plan • Federal Recipient ID Number 9211 • 501(c)4 Nonprofit

Anaheim Resort Transportation • 2626 E. Katella Ave., Anaheim, CA 92806 • 1-888-364-ARTS (2787) Be Part of Cutting Edge Innovation!

Map: City of Anaheim

CALIFORNIA

ANAHEIM N

City of Anaheim Active Investments Demographics create an influx of new residents and visitors to the City of Anaheim for work and play. County: Orange Population: 349,007 Anaheim Convention Center is the largest convention - Hispanic/Latino: 53.8% center, west of the Mississippi, just added 200,000 ft2of new - White: 25.2% space. - Black/African American: 2.2% Major Expansion at Disneyland on 17 new acres of - Asian: 16.3% attraction space, opening in 2019; will bring 20,000 new - Other: 2.5% daily visitors & require 3,800 new employees. Poverty: 61.7% New Hotels under construction will host 2,400 guests per Sources: Census Bureau; California HPI day & require 2,000 new employees.

The Anaheim Transportation Network’s Platinum Triangle is a 591-acre, mixed-use development mission is to enhance transportation in the final build-out phase. options by delivering reliable and efficient transportation solutions. Our CtrCity in Downtown Anaheim is being established as a commitment to customers focuses on “car-free” zone where transit will be marketed as a utility integrity, customer service, a can-do (like electricity), not a service. More than 1,000 new housing spirit, communication, and partnerships. units expected by 2021. Be Part of Cutting Edge Innovation! #ElectrifyAnaheim Changing the Transit Paradigm in Southern California Objectives Visionary Goals for the 21st Century Reduce Greenhouse gas Goal 1. FRAN MicroTransit: Free Rides Around the Neighborhood (GHG) emissions New transit service, using 10 small capacity (six-passenger) all-electric Expand & vehicles, will provide a new circulator and on-demand service in the CtrCity Improve downtown corridor. Service to increase Goal 2. Zero Emission Buses ridership 40 zero-emission vehicle (ZEV), all-electric buses will expand bus service Support to serve growing ridership, replace LNG buses, and allow ATN to have a 57% Tourism industry – ZEV fleet by 2020. including over 6,000 new jobs and 20,000 Goal 3. Solar Canopies & Maintenance Facility new daily visitors in New maintenance facility with solar charging canopies will accommodate 2019 the new MicroTransit fleet and expanded electric bus fleet, as well as current and future electrification needs. Connect Diverse ridership Goal 4. Mobile App Integration demographics to Integrate real-time parking guidance for CtrCity with ATN’s transit planning multiple transit and ride hailing mobile app. The app is being launched in connection with modes (Amtrak, the FRAN microtransit system. Metrolink) Fair Share Funding to Southern California under Cap and Trade

We are halfway there! We need your help to achieve our vision of a 100% Zero-Emission Fleet! Be Part of Cutting Edge Innovation! Funding Needed to Accomplish ZEV Goal: Total Project Cost: $53,479,250 Local Match: $43,029,250 P3 Leveraged Funds: $7,000,000 Federal Assistance:3,000,000 Leverages Partners & Organic and Significant Growth Existing Initiatives • Multiple local developments are • The project lays a foundation for MicroTransit exploding the need for transit. to create a new mode of service Availability and ability of public transit that does not currently exist. to meet this demand will ensure long- • One-of-a-kind mobile term environmental benefits. ticketing app under • The Anaheim Resort, including development to create Disneyland Resort (largest single site seamless trip and employer in California) and surrounding destination booking lodging establishments, combined with using P3 partnerships. the growing CtrCity and Platinum $2 million total value. Triangle, is a key economic and • Smart street signage employment engine for the City of and real-time bus Anaheim, Orange County, and the State. arrival information already being procured. • Tourism is the 3rd largest industry (from $800,000 total value. an employment perspective) for the State of California. #ElectrifyAnaheim is a paradigm shift in public transit in Southern California affecting employees, commuters, and New MicroTransit  STATE TIRCP visitors from throughout California,  40 all-electric bus INVESTMENT the United States, and the world. Maintenance Facility & Solar Canopy  $28.6 million Electric Bus Expertise  ART TO GO APP  PARTNERS & #Electrify Funded Real Time Transit Information  EXISTING CtrCity Car Free Zone  INITIATIVES Anaheim Anaheim Convention Ctr.  Disneyland & Attractions  Organic and New Hotels  Significant CONTACT : Platinum Triangle & ARTIC  Growth CtrCity  Diana Kotler Executive Director, #ElectrifyAnaheim Benefits Anaheim Resort Transportation • 625,000 new riders annually by 2021 2626 E. Katella Avenue • 42,423 metric tons of CO2 emission reductions over the project life Anaheim, CA 92806 714-563-5287 • 57% fully-electric fleet by 2020 [email protected] 2019 ATN STAKEHOLDER REPORT

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Appendix 3 New FRAN Stops for Neighborhoods

K | P a g e Anaheim Transportation N e t w o r k

2019 ATN STAKEHOLDER REPORT

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B | P a g e Anaheim Transportation N e t w o r k

January 9, 2020

Rudy Emami Director of Public Works City of Anaheim 200 South Anaheim Blvd. Anaheim, CA 92805

RE: ANAHEIM TRANSPORTATION NETWORK FRANCHISE ADDITION OF MICROTRANSIT STOP LOCATIONS_REVISED

Dear Mr. Emami:

Pursuant to the correspondence dated November 22, 2019, and subsequent discussions between the City of Anaheim and Anaheim Transportation Network (ATN) regarding addition of service area and new stop locations for Free Rides Around the Neighborhood (FRAN) service in Center City Anaheim, ATN is submitting a revised request for new FRAN stops.

TABLE 1 – PROPOSED NEW FRAN STOPS

MAP PROPOSED FRAN LOCATION DESIGNATION STOP LOCATION DESCRIPTION # 14 Washington Park Public Park 15 Citrus Park Public Park 13 Founder’s Park Public Park 16 Colony Park Public Park 17 Central Library City Facility 18 Anaheim Blvd & Shopping Center Public Sidewalk

The enclosed exhibit provides further details about proposed FRAN stop locations. As we jointly work with the City of Anaheim to expand FRAN service into the neighborhood and continue to learn from this service delivery approach/model, we will continue to move closer to an “uberesque” service delivery theme for our neighborhoods.

It is our plan to add the above-mentioned stops and expand FRAN’s reach by March 1, 2020. We will share our findings with the City of Anaheim in hopes of adding future, more Mobility on Demand (MOD) centric service options, to the evolution of FRAN service by Fall 2020. We will submit our findings and a follow-up request within 90-120 days from this expansion for further consideration by the City of Anaheim.

We look forward to receiving your comments and to seeing FRAN in Anaheim neighborhoods.

Should you have any questions or require further information, please contact me at 714-563-5287 or via e- mail at [email protected]. Thank you for your consideration of our request.

Sincerely,

Diana Kotler Executive Director

Attachments c: John Woodhead Kevin Clausen Rafael Cobian Belinda Trani Jim Appleby

2019 ATN STAKEHOLDER REPORT

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Appendix 4 ART Stops Inventory

B | P a g e Anaheim Transportation N e t w o r k

ART 2018 Bus Stop Inventory Bus Stop ID Bus Stop Name Buses Address Community/City Properties Served Bus Stop Type Signage Type Description 2029 4th-Spurgeon 300 E 4th St, Santa Ana, CA 92701 Santa Ana Downtown Santa Ana: 4th-Spurgeon Curbside No amenities. No amenities. Two poles available for potential cassette 3006 Anaheim-Ball 10 1120 S Anaheim, Anaheim, CA 92805 Anaheim Walmart Neighborhood Market Curbside Pedestal and/or sign (may need permission from property owner) Bus shelter, bench; replace cassette with new signage at 3010 Anaheim-Center 17 200 S Anaheim Blvd #217, Anaheim, CA 92805 Anaheim Anaheim City Hall City Bus Stop Cassette existing location or on light pole closer to benche 2033 Anaheim-Katella 101 E Katella Ave, Anaheim, CA 92802 Anaheim Cambria Hotel & Suites Anaheim City Bus Stop Sunrise LED 3013 Anaheim-Katella 6 1745 S Anaheim Blvd, Anaheim, CA 92805 Anaheim Peacock Suites Curbside Waysine existing location 5008 Anaheim-Midway Manor 887 S Anaheim Blvd. Anaheim, CA 92805 Anaheim The Colony Curbside Anaheim-Midway Manor 5007 Anaheim-Santa Ana 505 S Anaheim Blvd, Anaheim CA 92805 Anaheim Anaheim Packing District City Bus Stop Southbound. Anaheim Colony Historic 3007 Anaheim-Santa Ana 10 440 S Anaheim Blvd, Anaheim, CA 92805 Anaheim Anaheim Packing District City Bus Stop Waysine Could add new signage to existing pole 5006 Anaheim-Vermont 10 887 S Anaheim Blvd, Anaheim, CA 92805 Anaheim Anaheim White House City Bus Stop Cassette add signage 6029 Anton-Bristol 699 Anton Blvd, Costa Mesa, CA 92626 Costa Mesa Anton-Bristol Curbside Cassette No amenities. 6030 Anton-Enclave 499 Anton Blvd, Costa Mesa, CA 92626 Costa Mesa Anton-Enclave City Bus Stop Cassette No amenities. 6009 Anton-Marriott 22 500 Anton Blvd, Costa Mesa, CA 92626 Costa Mesa Costa Mesa Marriott Curbside A-Frame No amenities. 6014 Anton-Park Center 22 686 Anton Blvd, Costa Mesa, CA 92626 Costa Mesa The Westin South Coast Plaza City Bus Stop Cassette VJ 6015 Anton-Sakioka 22 535 Anton Blvd, Costa Mesa, CA 92626 Costa Mesa The MET City Bus Stop Cassette No amenities. ART stop added 04/01/2017 - VJ 6011 Anton-Westin 22 686 Anton Blvd, Costa Mesa, CA 92626 Costa Mesa The Westin South Coast Plaza Curbside A-Frame No amenities. 6000 ARTIC-Bay 12/13 15 2626 E Katella Ave, Anaheim, CA 92806 Anaheim ARTIC Anaheim Transportation Center Bus shelter and bench. 80 ARTIC-Bay 8 15X 2626 E Katella Ave, Anaheim, CA 92806 Anaheim Center Transportation Center Bus shelter and bench 6010 Avenue of the Arts-Anton 22 3350 Avenue of the Arts, Costa Mesa, CA 92626 Costa Mesa Orange County Curbside A-Frame No amenities. 6007 Baker-Bear 22 889 Baker St, Costa Mesa, CA 92626 Costa Mesa Residence Inn by Marriott Costa Mesa City Bus Stop Cassette Bus shelter & Bench Bus shelter and bench. Room to add new signage to exisng resort pole 4004 Ball-Cast 11 700 W Ball Rd, Anaheim, CA 92802 Anaheim Team Disney Administration Building City Bus Stop Cassette Team Disney Anaheim, Disney Casting Center 4002 Ball-Harbor 10 426 W Ball Rd, Anaheim, CA 92805 Anaheim Anaheim City Bus Stop Cassette add signage Benches

4003 Ball-Walnut 11 1160 W Ball Rd, Anaheim, CA 92802 Anaheim Springhill Suites City Bus Stop Sunrise LED Springhill Suites by Marriott Anaheim Maingate Benches. Could add cassette and/or new signage to 4006Ball-West Place 111050 W Ball Rd, Anaheim, CA 92802 Anaheim Staybridge Suites City Bus Stop Sunrise LED existing resort pole 2016 Beach-El Capitan 18 7711 Beach Blvd, Buena Park, CA 90620 Buena Park Dinner Adventure City Bus Stop Cassette No amenities. 6001 Bear-South Coast 22 3333 Bristol St, Costa Mesa, CA 92626 Costa Mesa South Coast Plaza Curbside Cassette Benches 6025 Bristol-Hotel 3131 Bristol St, Costa Mesa, CA 92626 Costa Mesa Crowne Plaza Curbside A-Frame No amenities. 6026 Bristol-Paularino 3045 Bristol St, Costa Mesa, CA 92626 Costa Mesa Bristol-Paularino City Bus Stop Cassette Bench area. 6008 Bristol-Paularino 22 3050 Bristol St, Costa Mesa, CA 92626 Costa Mesa Hilton Costa Mesa City Bus Stop Cassette Attached to OCTA stop. Bus shelter & bench. 6027 Bristol-Randolph 2995 Bristol St, Costa Mesa, CA 92626 Costa Mesa The Camp/The Lab City Bus Stop Cassette Bench area. 6006 Bristol-Santa Ana 22 355 Bristol St, Costa Mesa, CA 92626 Costa Mesa Ayres Inn & Suites Costa Mesa City Bus Stop Cassette Bus shelter and bench. 6031 Bristol-Town Center 3399 Bristol St, Costa Mesa, CA 92626 Costa Mesa South Coast Plaza - Bristol City Bus Stop Cassette Bus shelter and bench 2030 Broadway-2nd 201 N Broadway, Santa Ana, CA 92701 Santa Ana Downtown Santa Ana: 2nd Street-Broadway Curbside No amenities. 3020 Broadway-Anaheim 10 241 S Anaheim Blvd, Anaheim, CA 92805 Anaheim Muzeo Museum and Cultural Center Curbside No amenities Temp FRAN Stop #1 (The Circle Stop) 3019 Broadway-Clementine 10, FRAN 333 W Broadway, Anaheim, CA 92805 Anaheim United States Postal Service Curbside Pedestal No amenitie 136 Broadway-Lemon FRAN 181 W Broadway, Anaheim, CA 92805 Anaheim CP4, GOOD FOOD, St. Joseph, Disney Travel Curbside Temp FRAN Stop #2 137 Carnegie Plaza FRAN 234 S Lemon St, Anaheim, CA 92805 Anaheim CP3, Ctr St, Anaheim West Tower, Muzeo Curbside FRAN Sign FRAN Stop #3 FRAN Stop #2

Center Street Promenade, Good Food, St. Could use either of two existing light poles near the stop 5005 Center Street-Lemon 10, FRAN 200 W Center Street Promenade, Anaheim, CA 92805Anaheim Joseph... Curbside for new signag 4016 Chapman-ALO Hotel 14 200 N The City Dr, Orange, CA 92868 Orange ALO Hotel by Ayres Porte Co-Chère Hotel Cover & Benches 6017 Chapman-Homewood Special Line12005 1 Harbor Blvd, Garden Grove, CA 92840 Garden Grove Homewood Suites by Hilton Curbside A-Frame No amenities. 139 City Hall FRAN 200 S Anaheim Blvd, Anaheim, CA 92805 Anaheim City Hall, CP1, River Arena Curbside FRAN Sign FRAN Stop #5 2032 Clementine-Alro 1624 S Clementine St, Anaheim, CA 92802 Anaheim Element Hotel, Country Inn & Suites Curbside Sunrise LED No amenities. Replace cassette with new signage 6024 Clementine-Country Inn 7 1640 S Clementine St, Anaheim, CA 92802 Anaheim Country Inn & Suites by Carlson Curbside Pedestal attached to existing pedestal. Could add benches No amenities. Replace cassette with new signage 2020 Clementine-Disney Way 7 1752 Clementine St, Anaheim, CA 92802 Anaheim La Quinta Inn & Suites Anaheim Curbside Pedestal attached to existing pedestal Replace cassette with new signage attached to existing 2021 Clementine-Disney Way 7 1700 S Clementine St, Anaheim, CA 92802 Anaheim Residence Inn by Marriott Anaheim Maingate Curbside Pedestal pedestal or attached to tree behind bench. 2007 Convention Way-Clarion 3 616 Convention Way, Anaheim, CA 92802 Anaheim Clarion Curbside Cassette Benches and TVM 2008 Convention Way-Grand Plaza 4, 5, 15, 18,777 19, Convention 22 Way, Anaheim, CA 92802 Anaheim Hilton Anaheim, Anaheim Marriott, Curbside Benches and TVM 2009 Disney Way-Clementine 12 400 Disney Way Anaheim Anaheim GardenWalk on Disney Way Curbside Cassette No amenities 1101 Disney Way-Pumbaa Pumbaa Line1653-1699 Hotel Way, Anaheim, CA 92802 Anaheim Pumbaa Parking Lot Transportation Center No amenities. 6021 Disney-Katella Portal Anaheim StadiumDisney Way, Anaheim, CA 92802 Anaheim Center Arena Curbside A-Frame Namm Show 3017 Douglass-Cerittos 1500 S Douglass Rd, Anaheim, CA 92806 Anaheim ARENA Corporate Building Curbside No amenities 3018 Douglass-Katella 2695 E Katella Ave, Anaheim, CA 92806 Anaheim Honda Center Curbside No amenities 140 Electrica FRAN 326 S Lemon St, Anaheim, CA 92805 Anaheim Electrica, Little People's Park Curbside FRAN Sign Future Stop - FRAN Stop #6 141 Farmer's Park FRAN 338 S Anaheim Blvd, Anaheim, CA 92805 Anaheim Packard Building, Farmer's Park, Greenhouse... Curbside FRAN Sign FRAN Stop #7 5019 Frontera-Embassy Suites 21 3100 E Frontera St, Anaheim, CA 92806 Anaheim Embassy Suites by Hilton Anaheim North Porte Co-Chère Pedestal Benches Shelter and bench; could add new signage to existing 2025 Garden Grove-Holiday Inn Express 16 12867 Garden Grove Blvd, Garden Grove, CA Garden Grove Holiday Inn Express & Suites Porte Co-Chère Pedestal pedestal or install pole in soil next to benches? existing pedestal *CHECK WITH SYNCROMATICS ON HOW SIGN WILL CONNECT TO NETWORK. CELLULAR WILL NOT 2031 Gardenwalk Transportation Center 16 1775 South Clementine St, Anaheim, CA 92802 Anaheim Gardenwalk Transportation Center Transportation Center Sunrise LED WORK WELL OR AT ALL 6020 Gene Autry-Anaheim Stadium Anaheim Stadium2000 E Gene Autry Way, Anaheim, CA 92806 Anaheim Natural Produces, NAMM, special events Curbside A-Frame Namm Show 5013 Gilbert-Crescent 18 430 N Gilbert St, Anaheim, CA 92806 Anaheim Dad Miller Golf Course Curbside Cassette No Amenities 129 Gilbert-Lincoln 18 2375 W Lincoln Ave, Anaheim, CA 92801 Anaheim Hotel Pepper Tree Curbside Cassette No amenities 2000 Grand-Crescent 18 8039 Beach Blvd, Buena Park, CA 92620 Buena Park Knott's Berry Farm Curbside Pedestal Benches. No other amenities Sign attached to OCTA pole. Bus shelter & bench. Cassette 2013 Harbor-Ball 10 1009 S Harbor Blvd, Anaheim, CA 92805 Anaheim Harbor RV Park City Bus Stop Cassette damaged; could be replaced with signage on existing pole benches. Replace cassette with new signage higher up on 2015 Harbor-Broadway 17 301-399 S Harbor Blvd, Anaheim, CA 92805 Anaheim Anaheim Police Department City Bus Stop Cassette pole at existing location 3001 Harbor-Chapman 1, 2 2370 S Harbor Blvd, Anaheim, CA 92802 Anaheim Target City Bus Stop Cassette Attached to bus stop. Bus shelter and benches. 2005 Harbor-Chapman 1, 2, 12007 Harbor Blvd, Anaheim, CA 92840 Anaheim Garden Grove Entertainment District City Bus Stop Cassette Bus shelter and bench 6012 Harbor-Chapman 11931 Harbor Blvd, Garden Grove, CA 92840 Garden Grove Residence Inn Garden Grove Curbside A-Frame Bus shelter and bench. 2002 Harbor-Convention Way 1, 2 616 Convention Way, Anaheim, CA 92802 Anaheim Convention Way at Harbor SB City Bus Stop Sunrise LED Bus shelter and bench 3004 Harbor-Convention Way 1, 2, 3, 4, 5,1900 12, S16 Harbor Blvd, Anaheim, CA 92802 Anaheim Convention Way N/B City Bus Stop LCD Bus shelter and bench. 6018 Harbor-Delta Special Line12021 1 S Harbor Blvd, Garden Grove, CA 92840 Garden Grove Grove Curbside A-Frame Benches. Stop is serviced during special events 3012 Harbor-Disney 1, 2 1650 S Harbor Blvd, Anaheim, CA 92802 Anaheim Grand Legacy At The Park Curbside Cassette ART stop added on 04/01/2017 - VJ 31 Harbor-East Esplanade 31 1313 S. Harbor Blvd, Anaheim, CA 92802 Anaheim Disneyland Resort Transportation Center Bus shelter and bench 4 Harbor-East Esplanade 4 1313 S. Harbor Blvd., Anaheim, CA 92802 Anaheim Disneyland Resort Transportation Center Sunrise LED Bus shelter and bench 6 Harbor-East Esplanade 6 1313 S. Harbor Blvd., Anaheim, CA 92802 Anaheim Disneyland Resort Transportation Center Sunrise LED Bus shelter and bench 5 Harbor-East Esplanade 5 1313 S. Harbor Blvd., Anaheim, CA 92802 Anaheim Disneyland Resort Transportation Center Sunrise LED Bus shelter and bench 21 Harbor-East Esplanade 21 1313 S. Harbor Blvd., Anaheim, CA 92802 Anaheim Disneyland Resort Transportation Center Sunrise LED Bus shelter and bench 22 Harbor-East Esplanade 22 1313 S. Harbor Blvd., Anaheim, CA 92802 Anaheim Disneyland Resort Transportation Center Sunrise LED Bus shelter and bench 3 Harbor-East Esplanade 3 1313 S. Harbor Blvd., Anaheim, CA 92802 Anaheim Disneyland Resort Transportation Center Sunrise LED Bus shelter and bench 30 Harbor-East Esplanade 30 1313 S. Harbor Blvd., Anaheim, CA 92802 Anaheim Disneyland Resort Transportation Center Bus shelter and bench 15 Harbor-East Esplanade 15 1313 S. Harbor Blvd., Anaheim, CA 92802 Anaheim Disneyland Resort Transportation Center Sunrise LED Bus shelter and bench 16 Harbor-East Esplanade 16 1313 S. Harbor Blvd., Anaheim, CA 92802 Anaheim Disneyland Resort Transportation Center Sunrise LED Bus shelter and bench 17 Harbor-East Esplanade 17 1313 S. Harbor Blvd., Anaheim, CA 92802 Anaheim Disneyland Resort Transportation Center Sunrise LED Bus shelter and bench 18 Harbor-East Esplanade 18 1313 S. Harbor Blvd., Anaheim, CA 92802 Anaheim Disneyland Resort Transportation Center Sunrise LED Bus shelter and bench 19 Harbor-East Esplanade 19 1313 S. Harbor Blvd., Anaheim, CA 92802 Anaheim Disneyland Resort Transportation Center Sunrise LED Bus shelter and bench 2 Harbor-East Esplanade 2 1313 S. Harbor Blvd., Anaheim, CA 92802 Anaheim Disneyland Resort Transportation Center Sunrise LED Bus shelter and bench 20 Harbor-East Esplanade 20 1313 S. Harbor Blvd., Anaheim, CA 92802 Anaheim Disneyland Resort Transportation Center Sunrise LED Bus shelter and bench 12 Harbor-East Esplanade 12 1313 S. Harbor Blvd., Anaheim, CA 92802 Anaheim Disneyland Transportation Center Transportation Center Sunrise LED Bus shelter and bench 1 Harbor-East Esplanade 1 1313 S. Harbor Blvd., Anaheim, CA 92802 Anaheim Disneyland Resort Transportation Center Sunrise LED Bus shelter and bench 10 Harbor-East Esplanade 10 1313 S. Harbor Blvd., Anaheim, CA 92802 Anaheim Disneyland Resort Transportation Center Sunrise LED Bus shelter and bench 11 Harbor-East Esplanade 11 1313 S. Harbor Blvd., Anaheim, CA 92802 Anaheim Disneyland Resort Transportation Center Sunrise LED Bus shelter and bench 14 Harbor-East Esplanade 14 1313 S. Harbor Blvd., Anaheim, CA 92802 Anaheim Disneyland Resort Transportation Center Sunrise LED Bus shelter and bench 9 Harbor-East Esplanade 9 1313 S. Harbor Blvd., Anaheim, CA 92802 Anaheim Disneyland Resort Transportation Center Sunrise LED Bus shelter and bench 7 Harbor-East Esplanade 7 1313 S. Harbor Blvd., Anaheim, CA 92802 Anaheim Disneyland Resort Transportation Center Sunrise LED Bus shelter and bench 8 Harbor-East Esplanade 8 1313 S. Harbor Blvd., Anaheim, CA 92802 Anaheim Disneyland Resort Transportation Center Sunrise LED Bus shelter and bench 6019 Harbor-Embassy Special Line11767 2 S Harbor Blvd, Garden Grove, CA 92840 Garden Grove Embassy Suites by Hilton Anaheim South Curbside A-Frame Benches. Stop is serviced during special events. 4005 Harbor-Four Points 11 1221 S Harbor Blvd, Anaheim, CA 92805 Anaheim Four Points By Sheraton Anaheim Porte Co-Chère Sunrise LED Benches 3009 Harbor-Katella 1, 2, 18 1770 S Harbor Blvd, Anaheim, CA 92802 Anaheim Harbor-Katella City Bus Stop LCD Castle Inn & Suites 2001 Harbor-Katella 1, 2, 3, 18,1831 19 S Harbor Blvd, Anaheim, CA 92802 Anaheim Portofino Inn & Suites City Bus Stop LCD Bus shelter and bench 3005 Harbor-Katella 3 1850 S Harbor Blvd, Anaheim, CA 92802 Anaheim Red Lion Curbside Cassette Attached to resort pole. No amenities. 2017 Harbor-M3 Live Contractor2232 S Harbor Blvd, Anaheim, CA 92802 Anaheim M3 Live Anaheim Event Center Used for Westin Contractor pickup/drop off No amenities. Replace cassette with new signage affixed 2014 Harbor-Oak 17 201 S Anaheim Blvd, Anaheim CA 92805 Anaheim Anaheim City Hall Curbside Cassette to existing pole location Best Western Plus Raffles Inn & Suites, Dolphins 3003 Harbor-Orangewood 1, 2 2040 S Harbor Blvd, Anaheim, CA 92802 Anaheim Cove Resort, Homewood Suites City Bus Stop Cassette Attached to square bus stop. Bus shelter and bench. 2003 Harbor-Orangewood 1, 2, 2085 S Harbor Blvd, Anaheim, CA 92802 Anaheim DoubleTree Suites Curbside Waysine No amenities. 4010 Harbor-Santa Ana 17 420 S Harbor Blvd, Anaheim, CA 92805 Anaheim Anaheim Police Department City Bus Stop Cassette Benches. 2006 Harbor-Sheraton Park 3 1855 S Harbor Blvd, Anaheim, CA 92802 Anaheim Sheraton Park Porte Co-Chère Sunrise LED Shelter, benches and TVM 1100 Harbor-Toy Story 20 1854 S Harbor Blvd, Anaheim, CA 92802 Anaheim Toy Story Parking Transportation Center Bus shelter and bench Bus shelter and bench. Could replace cassette and/or add 2012 Harbor-Vermont 10 921 S Harbor Blvd, Anaheim, CA 92805 Anaheim Ramada Anaheim Maingate City Bus Stop Sunrise LED new signage to existing pole opposite OCTA signage. 3002 Harbor-Wilken 1, 2 2200 S Harbor Blvd, Anaheim, CA 92802 Anaheim Days Inn by Wyndham Anaheim Curbside Cassette Attached to light pole. No amenities. 2004 Harbor-Wilken 1, 2 2171 S Harbor Blvd, Anaheim, CA 92802 Anaheim Stanford Inn & Suites Curbside Waysine Benches 2024 Katella-Ayres Hotel Anaheim 15 2550 E Katella Ave, Anaheim, CA 92806 Anaheim Ayres Hotel Anaheim Porte Co-Chère Pedestal Property benches, covered area. 5001 Katella-Casa Vista 9 1176 W Katella Ave, Anaheim, CA 92802 Anaheim Best Western Pavillions City Bus Stop Sunrise LED Bus shelter and bench Bus shelter and bench. Replace cassette with new signage 3015 Katella-Clementine 8, 15 321 W Katella Ave, Anaheim, CA 92802 Anaheim Anaheim GardenWalk - Cheesecake Factory City Bus Stop LCD attached to existing resort pole 2034 Katella-Clementine 100 W Katella Ave, Anaheim, CA 92802 Anaheim Hampton Inn & Suites by Hilton Anaheim Resort City Bus Stop Sunrise LED Convention Center 5004 Katella-Convention Center 9 800 W Katella Ave, Anaheim, CA 92802 Anaheim Anaheim Convention Center Arena City Bus Stop Sunrise LED Bus shelter and bench. 4001 Katella-Harbor 9 631 W Katella Ave, Anaheim, CA 92802 Anaheim Desert Palms Hotel & Suites City Bus Stop Sunrise LED Bus shelter and bench No amenities. Replace cassette with new signage 4013 Katella-Harbor 6 425 W Katella Ave, Anaheim, CA 92802 Anaheim America's Best Value Inn and Suites Curbside Pedestal attached to existing pedestal or attach to palm tree? No amenities. *Name change from Ramada Plaza to Wyndham Garden Anaheim on 04/07/18 (VJ). Replace 4014 Katella-Harbor 6 515 W Katella Ave, Anaheim, CA 92802 Anaheim Wyndham Garden Anaheim Curbside Waysine cassette with new signage at existing location No amenities. Replace pedestal with new signage 2019 Katella-Harbor 7 424 W Katella Ave, Anaheim, CA 92802 Anaheim Anaheim Islander Inn and Suites Curbside Pedestal attached to nearby pole 4017 Katella-State College 14 1810 S State College Blvd, Anaheim, CA 92806 Anaheim Platinum Triangle City Bus Stop Bus shelter and bench 5018 Katella-State College 15 2005 E Katella Ave, Anaheim, CA 92806 Anaheim Platinum Triangle City Bus Stop Pedestal Bus shelter and bench 5002 Katella-West 9 1110 W Katella Ave, Anaheim, CA 92802 Anaheim Best Western Stovalls Inn Curbside Pedestal No amenities. 5003 Katella-West 9 1030 W Katella Ave, Anaheim, CA 92802 Anaheim Tiffy's, Westin Anaheim Resort City Bus Stop Cassette Westin Hotel coming soon. Bus shelter and bench 2035 Katella-Westin 1030 W Katella Ave, Anaheim, CA 92802 Anaheim Westin Anaheim Resort Stop location TBD 138 Kraemer FRAN 235 E Center St, Anaheim, CA 92805 Anaheim Kraemer Building, CP2, Community Center Curbside FRAN Sign FRAN Stop #4 4012 La Palma-Anaheim Canyon Station 17 1039 N PacifiCenter Dr, Anaheim, CA 92806 Anaheim Anaheim Canyon Metrolink Station City Bus Stop Cassette No amenities. 4007 La Palma-Fountain 17 3460 E La Palma Ave, Anaheim, CA 92806 Anaheim Kaiser Permanente Medical Center City Bus Stop Pedestal existing location 4011 La Palma-Grove 17 3460 E La Palma Ave, Anaheim, CA 92806 Anaheim Kaiser Permanente Medical Center City Bus Stop Cassette Outbound No amenities. 4022 La Palma-Miller 17 3400 E La Palma Ave, Anaheim, CA 92806 Anaheim Styles For Less Headquarters City Bus Stop Cassette Benches 4021 La Palma-Ocean 17 3375 E La Palma Ave, Anaheim, CA 92806 Anaheim Styles For Less Headquarters City Bus Stop Cassette Benches 4018 La Palma-Shepard 17 3320 E La Palma Ave, Anaheim, CA 92806 Anaheim Orange County Social Service City Bus Stop Cassette No amenities 4019 La Palma-Shepard 17 3521 E La Palma Ave, Anaheim, CA 92806 Anaheim Orange County Social Service Curbside Cassette Bus shelter and bench 4008 La Palma-State College 17 1001 N State College Blvd, Anaheim, CA 92806 Anaheim La Palma-State College City Bus Stop Cassette location Bus shelter, bench. Replace cassette with new signage at 5012 La Palma-State College 17 2000 E La Palma Ave, Anaheim, CA 92806 Anaheim La Palma-State College City Bus Stop Cassette existing location 144 Leisuretown FRAN 549 S Anaheim Blvd, Anaheim, CA 92805 Anaheim Leisuretown, Tony's Deli Curbside FRAN Sign Future Stop - FRAN Stop #10 5015 Lincoln-Euclid 18 1680 W Lincoln Ave, Anaheim, CA 92801 Anaheim WSS Shoe Store City Bus Stop Cassette Attached to square bus stop sign. Benches 2026 Main Place Mall 2800 N Main St, Santa Ana, CA 92705 Santa Ana Mainplace Mall Curbside Cassette No amenities. 2028 Main-20th 2002 N Main St, Santa Ana, CA 92706 Santa Ana Bowers Museum City Bus Stop Benches. 2027 Main-Santiago 2500 N Main St, Santa Ana, CA 92705 Santa Ana Discovery Cube Orange County Curbside No amenities. 143 MAKE FRAN 500 S Anaheim Blvd, Anaheim, CA 92805 Anaheim MAKE, Unsung Brewing Company, Jav's Bar-B-Q Curbside FRAN Sign FRAN Stop #9 2011 Manchester-Anaheim Gray Line 12 2001 S Manchester Ave, Anaheim, CA 92802 Anaheim Anaheim Gray Line Curbside No amenities. Stop inactive 4 Benches. Replace pedestal with new signage attached 3011 Manchester-Harbor 7 1380 S Harbor Blvd, Anaheim, CA 92802 Anaheim Howard Johnson Anaheim Hotel City Bus Stop Pedestal to nearby pole under OCTA sign Courtyard by Marriott Anaheim Theme Park No amenities. Replace cassette with new signage 5016 Manchester-Harbor 8 1420 S Harbor Blvd, Anaheim, CA 92802 Anaheim Entrance, Holiday Inn Express Curbside Waysine attached to existing resort pole 2010 Manchester-Holiday Inn 12, 19, 221915 S Manchester Ave, Anaheim, CA 92802 Anaheim Staybridge Suites Porte Co-Chère Sunrise LED Shelter, benches and TVM owner, replace pedestal with new signage attached to 2018Midway-RV Park 6200 W Midway Dr, Anaheim, CA 92805 Anaheim Anaheim RV Park Curbside Waysine beige support posts 6003 Newport-21st 22 2070 Newport Blvd, Costa Mesa, CA 92627 Costa Mesa Holiday Inn Express Curbside A-Frame No amenities 6005 Newport-Mesa 22 2642 Newport Blvd, Costa Mesa, CA 92627 Costa Mesa Best Western Plus Newport Mesa Inn Curbside A-Frame No amenities 6004 Newport-Santa Isabel 22 2430 Newport Blvd, Costa Mesa, A 92627 Costa Mesa BLVD Hotel Curbside A-Frame No amenities 142 Packing House FRAN 440 S Anaheim Blvd, Anaheim, CA 92805 Anaheim Anaheim Packing District Curbside FRAN Sign FRAN Stop #8 6028 Randolph-Bristol 2917 Bristol St, Costa Mesa, CA, 92626 Costa Mesa Bristol-Randolph City Bus Stop Cassette Bench area. 5017 State College-Embassy Suites 14 400 N State College Blvd, Orange, CA 92868 Orange Embassy Suites by Hilton Anaheim Orange Porte Co-Chère Pedestal Benches 4020 State College-TownePlace 15 1730 S State College Blvd, Anaheim, CA 92806 Anaheim TownePlace Suites Curbside Pedestal No amenities. 6016 Sunflower-Park Center 22 600 Town Center Dr, Costa Mesa, CA 92626 Costa Mesa Segestrom Center for the Arts Curbside Cassette No amenities. Stop added 04/01/2017 -VJ 6002 Superior-17th 22 1680 Superior Ave, Costa Mesa, CA 92627 Costa Mesa Ramada Inn & Suites Curbside A-Frame No amenities 135 The Circle FRAN 399-351 W Center Street Promenade Anaheim BARN, CP7, Anaheim ICE, Harbor Lofts, RARE... Curbside FRAN Sign FRAN Stop #1 134 The City Drive-DoubleTree 14 100 The City Drive, Orange, California, 92868-3204 Orange County Porte Co-Chère signage on existing pedestal or install pedestal in dirt 2023 The City-Best Western Plus 16 720 The City Dr S, Orange, CA 92868 Orange Best Western Plus Meridian Inn Porte Co-Chère Pedestal behind bench No amenities. Could replace cassette with new signage 2022 The Outlets at Orange 16 20 City Blvd, Orange, CA 92868 Orange The Outlets at Orange Curbside Cassette affixed to fire lane pole 6013 Transit Plaza-Car Park 4 Car Park 41073 Transit Plaza, Anaheim, CA 92805 Anaheim Car Park 4 Transportation Center A-Frame No Amenities. Parking Structure 6022 Transit Plaza-West 20 871 Transit Plaza, Anaheim, CA 92802 Anaheim Transit Plaza South Transportation Center A-Frame Convention Center Special Events 6023 Transit Plaza-West 20 871 Transit Plaza, Anaheim CA, 92802 Anaheim Transit Plaza North Curbside A-Frame Convention Center Special Events 5011 Vermont-Melrose 17 955 S Melrose St, Anaheim, CA 92805 Anaheim Maintenance Facility Curbside Cassette Inbound. aka Olive Street. No amenities 4009 Vermont-Olive 17 495 E Vermont Ave, Anaheim, CA 92805 Anaheim Maintenance Facility Curbside Cassette AKA Olive Street No amenities Shelter and benches. Could we ask property owner about installing a simple pole here? There's a lot of room even if 3008 Walnut-Ball 11 1240 S Walnut Ave, Anaheim, CA 92802 Anaheim Holiday Inn Hotel & Suites Curbside Waysine it's just a wood post of some sort in the dirt. 3016 Zeyn-Disney 8 100 Disney Way, Anaheim, CA 92802 Anaheim Motel 6 Anaheim Maingate Curbside Cassette existing location Attached to Resort pole. No amenities. Cassette missing; 3014 Zeyn-Katella 8 201 W Katella Ave, Anaheim, CA 92802 Anaheim WorldMark Anaheim Curbside Cassette replace with new signage attached to existing resort pole 2019 ATN STAKEHOLDER REPORT

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Appendix 5 ART System Map _2019/2020 Winter Map

C | P a g e Anaheim Transportation N e t w o r k

N HARBOR B L

Styles For Less Corporate Ofﬁces MAP NOT TO SCALE Anaheim Buena Park Line operates VD E LA PALMA AVE Kaiser Canyon daily taking a service break OC Social Services Permanente from 12:00 PM - 4:00 PM. Station REST

CENTER STREET PROMENADE S ALO Hotel by Ayres/Ayres Hotel Orange TA TE C Embassy Suites FRONTERA ST Anaheim North America's Best Value Inn & Suites Astoria CLEMENTINE S TUS

OLL E America's Best Value Inn & Suites Convention Center TIN A

Quality Inn Anaheim Maingate GE B L Anaheim Harbor RV Park VE Carolina's Italian Restaurant Anaheim The Anaheim Hotel Public Library Post Ofﬁce T BUENA T MUZEO Ramada Maingate North BROADWAY AVE SANTA ANA S Anaheim Islander Inn & Suites PARK VD Shakey’s Pizza LEGEND Anaheim Marriott LINCOLN Anaheim Harbor RV Park Anaheim Police Dept. Anaheim Anaheim RV Park & EUCLID VERMONT AVE White House EAS Best Western Plus Meridian Inn & Suites T S Dine Rest Best Western Plus Pavilions America’s Best Value BALL RD BALL RD McDonald's T Inn & Suites Astoria ART Ticket Kiosk Best Western Plus Rafﬂ es Inn & Suites Best Western Plus Stovall's Inn C Howard Johnson Anaheim A Walmart

S Hotel & Water Playground ART Stops Cambria Hotel (Opening 2019)

T Neighborhood

P Market Candlewood Suites Springhill Staybridge L Suites Tru Grits Four Points Suites ART ROUTES Castle Inn & Suites Anaheim Anaheim By Sheraton Anaheim Maingate at the Park Stop # at Disneyland® Main Clarion Hotel Anaheim Resort Mimi’s Transportation Center Cafe Courtyard Clementine Hotel by Marriott 15 ARTIC Sports Complex Line Holiday Inn Hotel Panera Holiday Inn SANT Cortona Inn & Suites & Suites Anaheim Bread Express Resort MIDWAY DR 11 Ball Road Line A ANA FREEW Country Inn & Suites MANCHES Buena Park Line McDonald’s 18 Courtyard by Marriott Anaheim Resort/

W Anaheim 17 Canyon Line Convention Center S ALNUT ALNUT Hilton Garden Inn/ RV Park Home2 Suites HARBOR B L Courtyard by Marriott Theme Park Entrance IHOP (Opening 2020) A 10 CtrCity Line TER A A N Desert Palms Hotel & Suites Connect to all Y A 7 Clementine Line H Dolphin's Cove Resort E Disney Way Line T VE 8

ART Routes Here M Radisson Blu Extension of Canyon Line DoubleTree Hotel Anaheim - Orange County

19 Ball Road Line Denny’s (2020) B VD

Buena Park Line L DoubleTree Suites by Hilton Hotel Anaheim Resort - DISNEYLAND DR

Canyon Line V 3 4 5 Gandr Plaza Line CtrCity Line Convention Center State College Line Tony Roma's D Disney Way Line 2 Harbor Line North Embassy Suites Anaheim North Orange Line The 5ifth Manchester Ave Line Pizzaterian 1 Harbor Line South Embassy Suites by Hilton Anaheim Orange ARTIC Sports Complex Line Element Hotel Harbor Line North Jimboy's Tacos Hotel Circle Line by Westin Anaheim 6 Hotel Circle Line Extended Stay America Clementine Line Bobatopia (Opening 2019) Grand Plaza Line Grand Legacy Katella Line Harbor Line South at the Park 9 Four Points by Sheraton Katella Line DISNEY WAY Country Inn & Suites Toy Story Line 12 Manchester Ave Line Grand Legacy at the Park Motel 6 Anaheim Maingate 16 Orange Line Hampton Inn & Suites Anaheim Resort 14 State College Line Convention Center Disnel n® Hilton Anaheim The Pizza Press 20 Toy Story Line Resor An heim Holiday Inn Anaheim-Resort The Anaheim House of Blues Hotel Holiday Inn Express & Suites Anaheim Resort Foundation Room G renW lk Down own Rumba Room Live Holiday Inn Express & Suites Garden Grove Fire & Ice Grill & Bar Disne Dis ric Holiday Inn Hotel & Suites Anaheim ® Johnny Rockets Clementine Hotel Grasslands BBQ Homewood Suites by Hilton Anaheim Resort -

All lines begin and end at Disneyland® Main S ZEYN ST Service to subterranean Convention Center Transportation Center. Hours and frequency of operation Billy Beez stop begins at 11 AM daily may vary based on theme park hours. Service begins 90 Bowlmor Lanes Extended Stay Candlewood Suites Howard Johnson Anaheim Hotel & 24 Hour Fitness America Water Playground minutes prior to park opening and concludes 30 minutes HARBOR B L and more! after park closing. The Buena Park, CtrCity, ARTIC Sports JW Marriott Peacock Suites Hyatt House at Anaheim Resort (Opening 2020) CLEMENTINE S Denny's Complex, and Orange Lines operate on a timed schedule. Hyatt Place at Anaheim Resort/Convention Center Schedule and route details are available on our website Carl's Jr (RideART.org). Castle Inn & Suites La Quinta Togos DOUGLAS RD La Quinta Inn & Suites (shared stop at Extended Bubba Gump Shrimp Co. Stay America) Inn & Suites Cambria Starbucks Panda Express Hon Cen er

VD Subway McCormick & Schmick’s Hotel Yogurtland Fresca's Motel 6 Anaheim Maingate TownPlace Suites California Pizza Kitchen (Opening Fish Grill Starbucks WorldMark 2019) Peacock Suites Roy’s Anaheim The Habit Desert Palms America's Best AT&T Store P.F. Chang’s Jersey Mike's Portoﬁ no Inn & Suites Hotel & Suites Wyndham Value Inn & Suites T Garden Hotel Convention Center The Cheesecake Factory Luna Grill KATELLA AVE Bay Poke Zov’s KATELLA AVE Quality Inn Anaheim Maingate Ramada Maingate North Residence Inn Coffee Bean & Walgreens Tiffy’s by Marriott Teal Leaf / CVS The Catch Red Lion Hotel Anaheim Resort Springhill Suites Hyatt House at Marri’s Best Best Westin Hotel An heim Anaheim Resort Anaheim Resort Anaheim Islander Hampton Inn & Residence Inn by Marriott Pizza Western Western (Opening 2020) Inn & Suites Suites Anaheim Resort Ayres Hotel Area Anaheim & Pasta Plus Stovall’s Conven ion Convention Center Sheraton Park Hotel at the Anaheim Resort Pavilions Inn Portoﬁno Inn & Suites IHOP Cen er Aren H O City National WE S Springhill Suites Anaheim Maingate Grove of Anaheim Bay 12 TEL W Bay 13 An heim Red Lion Hotel MANCHES Springhill Suites Anaheim Resort Area Denny’s T S Ahaheim Resort Sheraton Park Hotel S HA S Stanford Inn & Suites TA TE C

Conven ion Cen er A

T at the Anaheim Resort Y Staybridge Suites Anaheim-Resort Area TER S To S or Staybridge Suites Anaheim at the Park TER A OLL E Tr nspor ion Cen er TownePlace Suites T ARTIC

VE WorldMark Anaheim Hilton GE B L Anaheim Convention Way Wyndham Garden Hotel CONVENTION WAY Morton’s (Northbound) EAT & DRINK VD AMTRAK/METROLINK via Cheesecake Factory Anaheim GardenWalk GRAND Clarion Hotel SERVICE TO: via Transportation Center (see map for list) PLAZA Anaheim Resort San Clemente Beaches via Disney Way Anaheim Staybridge Suites San Juan Capistrano Anaheim Packing District/Anaheim Packing House Marriott Anaheim-Resort Tr nsi Pl z Los Angeles Union Station Anaheim White House Cortona Inn & Suites Homewood Suites Holiday Inn Hollywood Anaheim Resort Anaheim Convention Center Anaheim-Resort Area Angel Hyatt Place at S i m Wine Country The Catch Anaheim Resort/Convention Center Santa Barbara Ruth’s Chris Best Western Plus Center Street Promenade Courtyard by Marriott Rafﬂes Inn & Suites of An heim and more! Anaheim Resort/Convention Center Steak House (corridor of unique shops & eateries) Coffee Bean & Tea Leaf Embassy Service to breweries DoubleTree Suites Suites Denny's (Stadium Crossings) Denny’s Dolphin’s Orange begins at 11 AM daily Connect with us by Hilton Hotel Cove Resort ORANGEWOOD AVE Denny's - Harbor Blvd & Orangewood @RideARTbus Denny's - W Katella Ave & Walnut St Fresca's (Stadium Crossings) Roscoe's House of Chicken and Wafﬂes THE CITY DR Fish Grill (Cambria Hotel) Stanford Inn Golden Road Brewing

& Suites Magnolia Tree Hotel Golden Road Karl Strauss GOOD FOOD Brewing Brewing Company WILKEN WAY Ayres Hotel Orange The Habit Burger Grill

ART PASSES & FARES ALO Hotel by Ayres IHOP - Harbor & Katella Single & multi-day passes are available for instant purchase Joe's Italian Ice IHOP - near Habor & Disney Way on the RideART app or in-person at multiple ticket vending CHAPMAN AVE Jersey Mike’s (Cambria Hotel) locations. ART passes grant hop-on hop-off service on any ART Joe's Italian Ice route(s). Multi-day passes are valid for use over consecutive days, please visit RideART.org for details. The O le s DoubleTree by Hilton Hotel Karl Strauss Brewing Company Or nge Anaheim - Orange County Luna Grill (Cambria Hotel) Heading to the Marri's Pizza & Pasta Adult Child Reduced Fare* Holiday Inn Express (Ages 10+) (Ages 3-9) (ID Required) ® & Suites Garden Grove Best Western Plus Morton's The Steakhouse Disneyland Resort GARDEN GROVE BLVD Meridian Inn & Suites 1-day $6.00 $2.50 $2.50 Oasis Kitchen and Bar 3-day $16.00 $3.50 $5.50 Children age from COSTA MESA? Panda Express (Stadium Crossings) 2 & under ride free. Roscoe's House of Chicken and Waffl es 5-day $25.00 $5.50 $8.50 Please see SHOP EXPERIENCE OTHER Ruth's Chris Steak House 15-day $50.00 $15.00 $25.00 Children age our schedule on 12 & under must be via The Cheesecake Factory Anaheim GardenWalk Anaheim Canyon Station Shakey's Pizza 30-day $69.00 $25.00 $35.00 accompanied by an RideART.org Anaheim Convention Center via Grand Plaza City National Grove of Anaheim via Transportation Center (see map for list) Anaheim City Hall Starbucks (Cambria Hotel) adult to ride. via Disney® Way Dad Miller Golf Course One-Way $4.00 $1.50 $1.50 SERGERSTROM Starbucks - Hotel Way (Hilton Anaheim) CENTER Anaheim Convention Center via Convention Way at ALL ROUTES Disneyland® Resort Anaheim Police Dept. Anaheim Plaza Harbor (northbound) Starbucks - Katella Ave (Hyatt House) ALL ROUTES Downtown Disney® District ARTIC (Anaheim Regional Transportation *Reduced fare for seniors (65 & older), persons with disabilities CVS Anaheim Convention Center via Convention Way at Intermodal Center) Subway - Harbor & Katella The Outlets at Orange Harbor (southbound) Honda Center and Medicare card holders. Must show proof of age, disability or Kaiser Permanente Medical Center Tiffy's Family Restaurant Medicare card to operator. Senior citizens must show a driver’s Walgreens Anaheim Convention Center Arena via Katella Ave Knott's Berry Farm Orange County Social Services Togo's (Stadium Crossings) license, DMV ID card, Medicare card or OCTA Reduced Fare Walmart Neighborhood Market Medieval Times Dinner & Tournament SOUTH via Cheesecake Factory Anaheim GardenWalk Post Offi ce - Ball Rd & Walnut St Tony Roma's ID card as proof of age. Persons with disabilities must show an COAST via Transportation Center (see map for list) Muzeo Museum and Cultural Center PLAZA Tru Grits OCTA Reduced Fare ID card, Medicare card, Braille Institute via Disney® Way Pirates Dinner Adventure Post Offi ce - Broadway & Clementine (in CtrCity) Stadium House Apartments of Anaheim Yogurtland (Cambria Hotel) ID card, Service Connected Veterans ID card, or other transit Angel Stadium of Anaheim agencies ‘person with disabilities,’ including ACCESS cards, and Stadium Lofts Condominiums Zov's DMV disabled persons placard ID. 2019 ATN STAKEHOLDER REPORT

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Appendix 6 ATN Audited Financial Statements

D | P a g e Anaheim Transportation N e t w o r k

ANAHEIM TRANSPORTATION NETWORK CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2018 AND 2017

TABLE OF CONTENTS

Page

INDEPENDENT AUDITORS’ REPORT………………………………………… 1

CONSOLIDATED FINANCIAL STATEMENTS:

Consolidated Statements of Financial Position ……..……………………………… 3

Consolidated Statements of Activities ..……………………………………………. 4

Consolidated Statements of Cash Flows …………...………………………………. 5

Consolidated Notes to Financial Statements ……………………………………….. 6 – 14

SUPPLEMENTARY INFORMATION:

Schedule I – Consolidated Statements of Grant and Program Revenue For the Years Ended June 30, 2018 and 2017…………………………………. 16

Schedule II – Consolidated Statements of Operating, Grant and Program Expenses For the Years Ended June 30, 2018 and 2017………………………………….. 17

Schedule III – Consolidated Statements of General and Administrative Expenses For the Years Ended June 30, 2018 and 2017………………………………….. 18

Schedule IV – Consolidated Statements of Other Income For the Years Ended June 30, 2018 and 2017…………………………………. 19

ANAHEIM TRANSPORTATION NETWORK CONSOLIDATED STATEMENTS OF FINANCIAL POSITION JUNE 30, 2018 AND 2017

ASSETS

2018 2017

Assets

Cash and cash equivalents $ 659,941 $ 517,766 Investments 690,700 685,803 Accounts receivable 3,459,760 3,340,854 Fuel credit receivable 649,293 382,754 Prepaid expenses 91,841 66,777 Inventory 199,724 207,706 Total current assets 5,751,259 5,201,660

Property and equipment, net 8,341,811 9,213,045

TOTAL ASSETS $ 14,093,070 $ 14,414,705

LIABILITIES AND NET ASSETS

Liabilities Accounts payable $ 3,847,477 $ 2,441,797 Accrued and other liabilities 475,670 1,003,209 Line of credit - 100,000 Unearned revenue 101,970 108,480 Capital lease, current portion 268,760 258,008 Notes payable, current portion 61,311 329,047 Total current liabilities 4,755,188 4,240,541

Capital lease, long-term portion 1,327,523 1,596,282 Notes payable, long-term portion 1,996,738 1,847,293

TOTAL LIABILITIES 8,079,449 7,684,116

Net assets Unrestricted 6,013,621 6,730,589

TOTAL LIABILITIES AND NET ASSETS $ 14,093,070 $ 14,414,705

See accompanying independent auditors' report and notes to the financial statements. 3 ANAHEIM TRANSPORTATION NETWORK CONSOLIDATED STATEMENTS OF ACTIVITIES FOR THE YEARS ENDED JUNE 30, 2018 AND 2017

2018 2017

REVENUES AND OTHER SUPPORT

ART revenue $ 14,260,453 $ 14,070,761 Grant revenue 1,725,154 1,206,545 Program revenue 378,515 97,614 Membership revenue 57,448 56,253 Other income 399,773 258,172

TOTAL REVENUES $ 16,821,343 $ 15,689,345

EXPENSES

Program expenses Route 20 operating expenses $ 6,271,646 $ 5,463,865 Grant expense 155,494 202,647 Other program expenses 9,114,584 9,019,653 General, selling, and administrative 1,996,587 1,904,704

TOTAL EXPENSES 17,538,311 16,590,869

CHANGES IN NET ASSETS (716,968) (901,524)

UNRESTRICTED NET ASSETS, Beginning of year 6,730,589 7,632,113

UNRESTRICTED NET ASSETS, End of year $ 6,013,621 $ 6,730,589

See accompanying independent auditors' report and notes to the financial statements. 4 ANAHEIM TRANSPORTATION NETWORK CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30, 2018 AND 2017

2018 2017 CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets $ (716,968) $ (901,524) Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation 1,543,788 1,382,528 Change in assets and labilities: Accounts receivable (118,906) (599,022) Prepaid expenses (25,064) (39,271) Inventory 7,982 (9,756) Accounts payable 1,405,680 1,628,789 Accrued and other liabilities (527,539) 307,262 Unearned revenue (6,510) 74,570

CASH USED BY OPERATING ACTIVITIES 1,562,463 1,843,576

CASH FLOWS FROM INVESTING ACTIVITIES Purchases of certificate of deposits (4,897) (201,617) Reinvested interest income - - Purchases of property and equipment (672,554) (1,030,071)

CASH USED IN INVESTING ACTIVITIES (677,451) (1,231,688)

CASH FLOWS FROM FINANCING ACTIVITIES Principal payments on notes and loans payable (118,291) (66,884) Proceeds from/payments on line of credit (100,000) (100,000) Proceeds from issuance of notes and loans payable - 69,925 Payments on capital lease obligations (258,007) (145,710)

CASH USED IN FINANCING ACTIVITIES (476,298) (242,669)

NET CHANGE IN CASH AND CASH EQUIVALENTS 408,714 369,219

CASH AND CASH EQUIVALENTS, beginning of year 517,766 148,547

CASH AND CASH EQUIVALENTS, end of year $ 926,480 $ 517,766

NON-CASH INVESTING AND FINANCING ACTIVITIES Property and equipment funded by capital lease borrowings $ - $ 2,000,000

Supplemental Disclosure of Cash Flow Information: Cash paid for interest $ 162,771 $ 140,551 Cash paid for taxes $ 71,470 $ 55,689

See accompanying independent auditors' report and notes to the financial statements. 5 ANAHEIM TRANSPORTATION NETWORK Notes to Consolidated Financial Statements For the Years Ended June 30, 2018 and 2017

NOTE 1 NATURE OF THE ORGANIZATION

The Anaheim Transportation Network (the Organization) was formed in September 1995, as a California non-profit organization, tax-exempt under Section 501(c)(4) of the Internal Revenue Code (IRC). The Organization provides transportation coordination services to businesses, employees, and visitors of the Anaheim resort area. The Organization’s primary goal is to help mitigate current transportation problems and enhance transportation options by providing reliable and efficient transportation solutions in order to create a positive and satisfying environment for employees, customers, visitors, and residents of the City of Anaheim. The Organization receives its primary funding from transportation programs in the City of Anaheim (the City) and the County of Orange, subrecipient federal awards and membership dues. During the fiscal year ended June 30, 2017, the Organization received grants from the City’s Tourism Improvement District to provide transportation services at the new Anaheim Regional Transportation Intermodal Center (ARTIC). Members of the board of directors are elected by voting members made up of local businesses serviced by the Organization. In the event of dissolution of the Organization the remaining assets will be distributed to other non-profits.

ART Transportation Program The City has designated the Organization to administer the Anaheim Resort Transportation (ART) project on the City’s behalf. Working with the hospitality industry, the City, the Orange County Transportation Authority (OCTA), and First Transit (FT), the Organization created a high quality, clean fuel transportation system for the Anaheim resort area. The ART fleet is composed of propane and compressed natural gas vehicles. This program offers services to the entire Anaheim Resort area, allowing passengers the ability to circulate and access the event centers, shopping, dining, and evening entertainment in the area.

General Membership Programs The Organization has a membership program that provides a variety of services and benefits to member companies including, but not limited to, regulatory compliance assistance with Rule 2202 (Ridesharing Rule), legislative and regulatory tracking, and other transportation related projects.

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of financial presentation This summary of significant accounting policies of the Organization is presented to assist in understanding the Organization’s consolidated financial statements. The consolidated financial statements and notes are representations of the Organization’s management who is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America (GAAP) and have been consistently applied in the preparation of the consolidated financial statements.

The net assets of the Organization and changes therein are classified and reported as follows:

• Unrestricted net assets – Net assets that are not subject to donor-imposed stipulations and that may be expendable for any purpose in carrying out the Organization’s mission

ANAHEIM TRANSPORTATION NETWORK Notes to Consolidated Financial Statements For the Years Ended June 30, 2018 and 2017

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Basis of financial presentation (Continued) • Temporarily restricted net assets – Net assets subject to donor-imposed stipulations that may or will be met either by actions of the Organization and/or the passage of time. As the restrictions are satisfied, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the accompanying statements of activities as net assets released from restrictions. Temporarily restricted net assets that have been both earned and have had their restrictions met in the current year are recorded as unrestricted net assets. As of June 30, 2018 and 2017, the Organization had no temporarily restricted net assets.

• Permanently restricted net assets – Net assets to be held in perpetuity as directed by donors. The income from the contributions is available to support activities of the Organization as designated by the donors. As of June 30, 2018 and 2017, the Organization had no permanently restricted net assets.

Principles of Consolidation The consolidated financial statements include the accounts of Anaheim Transportation Network and its wholly owned subsidiary ATN Asset Holding Company, LLC, (Collectively referred to as the “Organization”) All material intercompany accounts, transactions and profits were eliminated in the consolidated financial statements.

Cash and cash equivalents The Organization considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents.

The Organization maintains its cash and cash equivalents in multiple financial institutions. Deposits held with these financial institutions may exceed the amount of insurance provided on such deposits. The balance is insured by the Federal Deposit Insurance Corporation (FDIC). There was an uninsured balance of $409,424 as of June 30, 2018. Management does not believe that the Organization is subject to any unusual financial risk beyond the normal risk associated with commercial banking relationships. The Organization has not experienced any losses on its deposits of cash and cash equivalents.

Investments Investments are comprised entirely of certificates of deposits and are stated at cost, adjusted for premiums and discounts, which approximates fair value, and are intended to be held until maturity. Interest income is accrued when earned.

Accounts receivable Accounts receivable is recorded at book value, net of the allowance for doubtful accounts. The Organization extends credit to its customers, substantially all of whom are businesses operating in Anaheim, California. Collateral is generally not required. Credit losses are provided for in the allowance for doubtful accounts based on management’s historical experience. Management has determined that an allowance is not necessary as of June 30, 2018 and 2017.

Inventory Inventory consists of bus ticket stock as well as maintenance parts for the busses. Such inventory is valued on the first-in first-out basis at the lower of cost or market.

7 ANAHEIM TRANSPORTATION NETWORK Notes to Consolidated Financial Statements For the Years Ended June 30, 2018 and 2017

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Property and equipment Property and equipment are reported at cost at the date of purchase or estimated fair value at the date of donation, net of accumulated depreciation. Depreciation and amortization are recorded using the straight- line method over the estimated useful life of the assets. Property and equipment consist of land, buildings, furniture and equipment, and vehicles. The estimated useful lives of assets are as follows: buildings and improvement – forty years, vehicles – three to seven years, furniture and equipment – five to ten years.

Expenses for major renewals and betterments that extend the useful lives of the assets are capitalized. It is the Organization’s policy to capitalize expenditures for these items in excess of $5,000. Costs for routine maintenance and repairs are charged to expense as incurred.

Unearned revenue Unearned revenue is comprised of amounts received for advertising and hotel flat rate fees received in advance. Unearned revenue is classified as a liability, and recognized as revenue over the period in which services are provided.

Advertising Advertising costs are charged to operations when incurred. Advertising costs for the years ended June 30, 2018 and 2017, totaled $159,936 and $319,906, respectively.

Tax exempt status The Organization has qualified for tax exempt status under Section 501(c)(4) of the IRC and, generally, is subject to state and federal income taxes on any net income that is derived from a trade or business, regularly carried on, and not in furtherance of the purpose for which the Organization was granted exemption. For the years ended June 30, 2018 and 2017, the Organization earned income related to unrelated business activities. Income tax expense for the years ended June 30, 2018 and 2017, on unrelated business income received during those years consists of franchise income tax of $9,819 and $5,881, respectively. The Organization has recognized no interest or penalties related to unrelated business activities and does not expect material changes within the next twelve months. The Organization believes it is no longer subject to income tax examinations to Federal and State taxing authorities for years prior to 2015 and 2014, respectively.

Use of estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Recent accounting pronouncements On August 18, 2016, the Financial Accounting Standard Board (FASB) issued Accounting Standards Update (ASU) 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not- for-Profit Entities. The amendments in this update are designed to improve the current net assets classification requirements and the information presented in the financial statements and notes about a not-for-profit entity’s liquidity, financial performance, and cash flows. The amendments in this ASU are effective for annual financial statements issued for fiscal years beginning after December 15, 2017. Early adoption is permitted. Amendments should be applied on a retrospective basis in the year the update is first applied. Management is currently evaluating the impact on the amendments in this ASU will have on the consolidated financial statements.

8 ANAHEIM TRANSPORTATION NETWORK Notes to Consolidated Financial Statements For the Years Ended June 30, 2018 and 2017

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Recent accounting pronouncements (Continued) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchased by the lessee. This classification will determine lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than twelve months regardless of their classification. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The standard is effective on January 1, 2020 with early adoption permitted. Management is currently evaluating the effect on this updated standard that will have on the consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity is expected to be entitled for those goods or services. ASU 2014-09 defines a five-step process to achieve this core principles and in, doing so, it is possible more judgement and estimate may be required under existing U.S. GAAP, including identifying performance obligation in the contract, estimating the amount of the variable consideration to include in the transaction price and allocating the transaction prices to each performance obligation. Revenue from contributions and investments income are not impacted by the new standard. ASU 2014-09 will be effective for annual reporting periods beginning after December 15, 2019 using either of two methods: a) retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09; or b) retrospective with the cumulative effect of initially applying ASU 2014-09 recognized at the date of the initial application and providing certain additional disclosures as defined in ASU 2014-09. Management has not yet selected a transition method and is currently evaluating the impact on this updated standard that will have on the consolidated financial statements.

NOTE 3 LINE OF CREDIT

Effective July 23, 2014, the Organization obtained a revolving line of credit with a local bank for capital expenditures with initial maturity date of July 23, 2015. During fiscal year 2017, the line of credit was extended to May 31, 2018. The maximum credit limit of $500,000 is secured by a UCC-1 financing statement filed on the Organization’s assets. The interest rate is calculated based on 2.25% plus Libor rate. The credit limit was closed on May 31, 2018.

9 ANAHEIM TRANSPORTATION NETWORK Notes to Consolidated Financial Statements For the Years Ended June 30, 2018 and 2017

NOTE 4 CONCENTRATION OF CREDIT RISK

Effective March 18, 2010, the Organization entered into a contractual agreement with Disneyland Resort, a division of Walt Disney Parks and Resorts U.S., Inc. The Organization is providing a public transit route, Route 20, which is an express downtown circulatory service to connect various Anaheim Resort parking facilities and the East Esplanade – the main transportation center for Disneyland Resort. Disneyland Resort agreed to compensate the Organization for all associated start-up costs and operating expenses through an assessment fee. For the years ended June 30, 2018 and 2017, the Organization received $6,361,836 and $5,510,456, respectively, of its total revenue from Disneyland Resort. Termination of this contract by either party could negatively affect the revenues of the Organization and the Organization’s results of operations.

The Organization has contracted with one company to provide transportation services in the Anaheim area. The Organization believes that if this provider were to discontinue services, a similar service provider could be engaged with minimal economic effect to the Organization.

The Organization engages in substantially all of its business within the city of Anaheim. Significant downturns in the local economy could impact the Organization’s profitability. The Organization believes that the city is committed to fuel efficient public transportation and therefore represents a low economic risk.

NOTE 5 ACCOUNTS RECEIVABLE

Accounts receivable as of June 30, 2018 and 2017, is comprised of the following:

Accounts receivable: 2018 2017 City of Anaheim $ 13,390 $ 19,814 Walt Disney Parks and Resorts U.S.A., Inc. 1,178,471 1,541,511 Other receivables 714,927 989,375 Accrued grant receivables 1,552,972 790,154 Alternative fuel credit receivable 649,293 382,754 Accounts receivable $ 4,109,053 $ 3,723,608

NOTE 6 FEDERAL FUNDING ASSISTANCE

Orange County Transportation Authority (OCTA) is the designated grant recipient for the Department of Transportation’s (DOT) Federal Transit Administration (FTA) Section 5307 Urbanized Area Formula Grant funds and FTA Section 5309 Discretionary Capital Grant funds for Orange County. The Organization has been deemed an eligible subrecipient to receive FTA Section 5307 Urbanized Area Formula Grant funds and FTA Section 5309 Discretionary Capital Grant funds. OCTA and the Organization entered into a cooperative agreement allowing OCTA to pass awarded federal grant funds to the Organization. The Organization will use the federal financial assistance for preventative maintenance on transportation equipment, bus replacement, and other capital projects falling within the compliance guidelines as established by OCTA, FTA, DOT, and other relevant governing bodies.

10 ANAHEIM TRANSPORTATION NETWORK Notes to Consolidated Financial Statements For the Years Ended June 30, 2018 and 2017

NOTE 6 FEDERAL FUNDING ASSISTANCE (Continued)

The subrecipient federal financial assistance is considered to be a reimbursement transaction. In addition, federal funds are first exchanged for local funds before being received by the Organization. Therefore, the nature of funding received is local not federal. Accordingly, revenue is recognized when earned and expenses are recognized as incurred. Subrecipient grant receipts and disbursements for the years ended June 30, 2018 and 2017, were as follows:

2018 2017 Grant receipts: Section 5307 -Urbanized Area Formula Grant $ - $ -

Grant disbursements: Section 5307 -Urbanized Area Formula Grant 1,552,972 790,154 Amount to be refunded $ 1,552,972 $ 790,154

On April 26, 2018 Anaheim Transportation Network received a full grant award for $28,617,000 from the State of California (CalSTA) Transit, California Department of Transportation (Caltrans), and Intercity Capital Program (TIRCP). Award would be funded for forty Zero Emission Busses, MicroTransit Service, and partial funding for Anaheim Transportation Network’s new facility. The project is scheduled to begin in the Fall of 2018 and will continue through end of 2020/2021.

NOTE 7 PROPERTY AND EQUIPMENT

Property and equipment consisted of the following at June 30, 2018 and 2017:

2018 2017 Land $ 2,250,000 $ 2,250,000 Furniture and equipment 963,112 963,112 Building and improvements 1,331,810 1,813,385 Vehicles 11,236,781 10,082,652 Total 15,781,703 15,109,149 Less: accumulated depreciation (7,439,892) (5,896,104) Property and equipment, net $ 8,341,811 $ 9,213,045

Depreciation expense for the years ended June 30, 2018 and 2017 amounted to $1,543,788 and $1,382,528 respectively.

11 ANAHEIM TRANSPORTATION NETWORK Notes to Consolidated Financial Statements For the Years Ended June 30, 2018 and 2017

NOTE 8 CAPITAL LEASE

On October 21, 2016, the client signed a capital lease for four busses for $2,000,000. The lease will be payable in eighty-four consecutive monthly payments of $27,421 of both principle and interest, commencing on December 5, 2016, and maturing on November 5, 2023. The lease charges an interest rate of 4.09%. The outstanding balance as of June 30, 2018 is $ 1,596,283.

Future principal payments are as follows:

Years ending June 30, Amount

2019 $ 183,388 2020 192,433 2021 202,291 2022 212,465 2023 223,152 Thereafter 480,474 Total $ 1,494,203

NOTE 9 NOTES AND LOANS PAYABLE

2018 2017

Note payable, interest at 11.75% per year beginning March 15, 2017 and payable in full $ - $ 59,384 on March 15, 2019

Loan payable, interest at 3.950% per year beginning January 1, 2015 and payable in 2,058,049 2,116,956 120 monthly installments of $11,885. Secured by the property at 1354 S. Anaheim Blvd.

Total notes and loans payable $ 2,058,049 $ 2,176,340

Future principal payments are as follows:

Years ending June 30, Amount 2019 $ 41,515 2020 43,405 2021 45,979 2022 48,396 2023 1,870,705 Thereafter - Total $ 2,050,000

12 ANAHEIM TRANSPORTATION NETWORK Notes to Consolidated Financial Statements For the Years Ended June 30, 2018 and 2017

NOTE 10 OTHER INCOME

For the years ended June 30, 2018 and 2017, other income consisted of the following:

2018 2017

Alternative fuel tax credit $ 392,817 $ 245,337 Interest income and miscellaneous 3,920 12,834 Loss on disposal of equipment 3,036 - Total $ 399,773 $ 258,171

NOTE 11 ENVIRONMENTAL CONTINGENT LIABILITY

Contingent liabilities are existing conditions, situations, or a set of circumstances involving uncertainty as to possible gain or loss to an entity that will ultimately be resolved when one or more future events occur or fail to occur.

As of June 30, 2018, the Organization is not aware of any certain contingent, environmental liabilities that may eventually result in the payment of substantial monetary claims to third parties. The likelihood of this liability is remote and not reasonably possible to estimate. The Organization does not believe that any environmental contingent liability, if any, will result in material expenses.

These future costs are not fully determinable due to such factors as the unknown magnitude of possible contamination, the unknown timing and extent of corrective actions that may be required, the determination of the Organization’s liability in proportion to other responsible parties, and the extent to which such costs are recoverable from third parties.

In addition, the Organization participates in the Special Property Insurance Program (SPIP) with Alliant Insurance Services, Inc. This policy covers accidental contaminations of $250,000 per occurrence and $250,000 annually per member with a $500,000 annual maximum for all members per declaration.

NOTE 12 RETIREMENT PLAN

The Organization maintains a qualified 403(b) Plan (the Plan). Employees are eligible to participate in the Plan upon hire. Each employee, after entering the Plan, is eligible to make elective salary deferrals up to the maximum deferral each year as permitted by federal law based on the employee’s age.

Starting January 1, 2016, the Organization provides a matching contribution up to 2.5% of an employee’s salaries and wages. Employees must contribute to their retirement plan in order to be eligible to receive the match. For the years ended June 30, 2018 and June 30, 2017 the Organization contributed $20,618 and $21,789 to the Plan.

13 ANAHEIM TRANSPORTATION NETWORK Notes to Consolidated Financial Statements For the Years Ended June 30, 2018 and 2017

NOTE 13 LONG-TERM COMMITMENTS

The Organization leases its office space as well as a parking lot from the city of Anaheim at a discounted rate which can be cancelled on three months’ notice. The client paid $50,675 and $56,970 in rent expense for the facility rent for the years ended June 30, 2018 and June 30, 2017.

In addition, the client leases numerous pieces of equipment. The Organization paid $27,260 and $26,087 in lease payments on equipment for the years ended June 30, 2018 and June 30, 2017.

Future minimum lease payments for the next five years are as follows:

Years ending June 30, Amount $ 2019 12,716 2020 4,166 Total $ 16,882

The Organization leases its Liquefied Natural Gas (LNG) fuel tank under an operating lease. The monthly fee is based on fuel usage and current fuel costs. For the years ended June 30, 2018 and 2017 the client paid $369,851 and $350,485 in fees under this lease.

NOTE 14 – SUBSEQUENT EVENTS

Subsequent to June 30, 2018, the Organization refinanced the property loan to a new financial institution for a total loan amount of $2,050,000 with a maturity date of December 2023. The property loan carries a variable interest rate at the London Interbank Offered Rate (''LIBOR'') plus 1.93% (effective rate of 5.063%). The Organization will pay this loan in 60 monthly payments of $12,148 and the initial payment will commence on January 5, 2019.

Along with the new property loan, the Organization refinanced 4 busses to the same financial institution. The total loan amount is for $1,494,000 with maturity date of December 2025 and interest rate of 4.850%. The Organization will pay this loan in 83 monthly payments of $21,063 and the initial payment will commence on January 6, 2019.

The future minimum required payments of the new loans above, are reflected in Notes 8 and 9 of the consolidated financial statements.

Subsequent to June 30, 2018, the same financial institution issued commercial credit card for $850,000 with variable interest rate of 9.99%. Interest shall only be payable if the account is not settled by the monthly due date and becomes past due.

Management of the Organization has reviewed the changes in their net assets and evaluated subsequent events for the period of time from their year end of June 30, 2018 through December 21, 2018, the date the consolidated financial statements were available to be issued.

SUPPLEMENTAL INFORMATION

ANAHEIM TRANSPORTATION NETWORK SCHEDULE I - STATEMENTS OF GRANT AND PROGRAM REVENUES YEARS ENDED JUNE 30, 2018 AND 2017

2018 2017 ART revenues: Route 20 $ 6,361,836 $ 5,510,456 ART ticket sales 4,120,124 4,525,030 Hotel flat rate 2,437,710 2,389,052 Advertising 817,131 818,821 Group sales 389,866 676,058 Hotel kiosk lease 108,500 120,000 Metrolink route 15 3,278 3,958 Amtrak 22,008 27,386 Total ART revenues 14,260,453 14,070,761

Grant revenues: Local grants: Section 5339 91,000 102,778 Section 5307 749,818 788,180 Local grants (ATID, Costa Mesa, Ctr City Anaheim) 884,336 315,587 Total grant revenues 1,725,154 1,206,545

Program revenues: Downtown shuttle service 284,389 71,518 Rideshare transit passes 5,645 10,158 Costa Mesa service 78,993 - Commuter incentives 9,488 15,938 Total program revenues 378,515 97,614

Membership dues 57,448 56,253

Total ART grant and program revenues $ 16,421,570 $ 15,431,173

See accompanying independent auditors' report and notes to the financial statements. 16 ANAHEIM TRANSPORTATION NETWORK SCHEDULE II - STATEMENTS OF OPERATING, GRANT AND PROGRAM EXPENSES YEARS ENDED JUNE 30, 2018 AND 2017

2018 2017 Route 20 operating expenses: Anaheim resort transit service $ 3,905,553 $ 3,298,473 Leased buses: Repairs and maintenance 894,583 696,260 Fuel 739,932 647,128 Salaries and benefits 731,578 822,004 Total route 20 operating expenses 6,271,646 5,463,865

Grant expenses: Local grants: Local formula grant 129,038 88,590 Caltrans grant 26,456 114,057 Total grant expenses 155,494 202,647

Program expenses: Transit service expenses 3,533,152 3,272,301 Transit service expenses - other - Depreciation 1,296,782 1,157,234 Downtown shuttle service - 88,072 Fuel supplies 958,882 931,141 Salaries and benefits 1,493,396 1,477,730 Commuter incentives and bus maintenance 414,307 711,110 Professional services 384,390 262,600 Participation usage credit 168,422 241,999 Telecommunication 167,152 127,480 Furniture and equipment 105,375 109,263 Taxes 70,770 55,689 Marketing 87,029 113,301 Interest 162,771 140,551 ART transit passes 10,016 24,636 Rideshare transit passes 8,925 13,964 Mobile ticketing service fees 18,755 45,897 Facility rental 50,675 56,970 Miscellaneous 183,785 189,715 Total program expenses 9,114,584 9,019,653

Total operating, grant and program expenses $ 15,541,724 $ 14,686,165

See accompanying independent auditors' report and notes to the financial statements. 17 ANAHEIM TRANSPORTATION NETWORK SCHEDULE III - STATEMENTS OF GENERAL AND ADMINISTRATIVE EXPENSES YEARS ENDED JUNE 30, 2018 AND 2017

2018 2017 General, selling, and administrative expenses: Salaries and wages $ 515,681 $ 454,347 Professional and legal services 366,510 296,878 Depreciation 247,006 225,294 Insurance: Property 53,263 55,319 Group medical 25,151 27,937 Pollution liability 10,585 11,620 Workers' compensation 166,804 113,539 Crime 2,250 2,242 Marketing 72,907 206,605 Utilities 91,935 121,736 Kiosk merchant fees 55,003 68,546 General travel and promotion 59,465 53,410 Payroll taxes 55,849 57,292 Administrative fees 54,155 33,533 Dues and subscriptions 63,746 43,587 Miscellaneous 32,196 34,629 Bank charges 11,673 11,091 Automotive expenses 9,092 7,781 Conference expenses 6,138 7,850 Postage expenses 11,054 11,167 Storage rent 1,902 2,769 Payroll processing fees 13,959 10,867 Meals and entertainment 7,393 7,493 Taxes and licenses 1,762 2,481 Professional development and training 5,028 4,971 Board meeting expenses 4,038 1,154 Credit card fees 52,042 30,566 Total general and administrative expenses $ 1,996,587 $ 1,904,704

See accompanying independent auditors' report and notes to the financial statements. 18 ANAHEIM TRANSPORTATION NETWORK SCHEDULE IV - STATEMENTS OF OTHER INCOME YEARS ENDED JUNE 30, 2018 AND 2017

2018 2017 Other income: Alternative fuel tax credit $ 392,817 $ 245,337 Miscellaneous and interest income 3,920 12,835 Loss on disposal of equipment 3,036 - Total other income $ 399,773 $ 258,172

See accompanying independent auditors' report and notes to the financial statements. 19

ANAHEIM TRANSPORTATION NETWORK

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30, 2019

ANAHEIM TRANSPORTATION NETWORK CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2019

Table of Contents

Page

INDEPENDENT AUDITOR’S REPORT ...... 1

CONSOLIDATED FINANCIAL STATEMENTS:

Consolidated Statement of Financial Position ...... 3

Consolidated Statement of Activities ...... 4

Consolidated Statement of Functional Expenses ...... 5

Consolidated Statement of Cash Flows ...... 6

Notes to Consolidated Financial Statements ...... 7

CONSOLIDATED SUPPLEMENTARY INFORMATION:

Schedule I – Consolidated Statement of ART, Grant, and Program Revenues and Membership Dues For the Year Ended June 30, 2019 ...... 16

Schedule II – Consolidated Statement of Other Income For the Year Ended June 30, 2019 ...... 17

INDEPENDENT AUDITOR’S REPORT

To the Board of Directors of Anaheim Transportation Network Anaheim, California

We have audited the accompanying consolidated financial statements of Anaheim Transportation Network and its wholly owned subsidiary ATN Asset Holding Company, LLC, (collectively referred to as the “Organization”) which comprise the consolidated statement of financial position as of June 30, 2019, the related consolidated statements of activities, functional expenses, and cash flows for the year then ended, and the related notes to the consolidated financial statements.

Management’s Responsibility for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Organization’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Organization’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of the Organization as of June 30, 2019, and the consolidated changes in its net assets and cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Emphasis of a Matter

During the year ended June 30, 2019, the Organization adopted the provision of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities. Our opinion was not affected by the implementation.

Report on Summarized Comparative Information

The consolidated financial statements of the Organization as of June 30, 2018, were audited by other auditors. Those auditors expressed an unmodified opinion on those consolidated financial statements in their report dated December 31, 2018. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2018, is consistent, in all material respects, with the audited consolidated financial statements from which it has been derived.

Report on Consolidated Supplementary Information

Our audit was conducted for the purpose of forming an opinion on the consolidated financial statements as a whole. The accompanying consolidated supplementary information as listed in the table of contents is presented for purposes of additional analysis and is not a required part of the consolidated financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the consolidated financial statements. The information has been subjected to the auditing procedures applied in the audit of the consolidated financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the consolidated financial statements or to the consolidated financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the consolidated financial statements as a whole.

BROWN ARMSTRONG ACCOUNTANCY CORPORATION

Bakersfield, California November 20, 2019

ANAHEIM TRANSPORTATION NETWORK CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF JUNE 30, 2019 (WITH COMPARATIVE TOTALS FOR 2018)

ASSETS 2019 2018

Assets Cash and cash equivalents $ 90,477 $ 659,941 Investments 693,407 690,700 Accounts receivable 3,974,362 3,459,760 Fuel credit receivable 465,959 649,293 Prepaid expenses 80,144 91,841 Inventory 191,415 199,724

Total current assets 5,495,764 5,751,259

Property and equipment, net 7,338,653 8,341,811

TOTAL ASSETS $ 12,834,417 $ 14,093,070

LIABILITIES AND NET ASSETS

Liabilities Accounts payable $ 3,711,371 $ 3,847,477 Credit card payable 486,746 222,298 Accrued and other liabilities 316,568 253,372 Unearned revenue 35,555 101,970 Capital lease, current portion - 268,760 Notes payable, current portion 230,061 61,311

Total current liabilities 4,780,301 4,755,188

Capital lease, long-term portion - 1,327,523 Notes payable, long-term portion 3,202,842 1,996,738

Total long-term liabilities 3,202,842 3,324,261

TOTAL LIABILITIES 7,983,143 8,079,449

Net assets Without donor restrictions 4,851,274 6,013,621

TOTAL NET ASSETS 4,851,274 6,013,621

TOTAL LIABILITIES AND NET ASSETS $ 12,834,417 $ 14,093,070

See accompanying independent auditor’s report and notes to the consolidated financial statements. 3

ANAHEIM TRANSPORTATION NETWORK CONSOLIDATED STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2019 (WITH COMPARATIVE TOTALS FOR 2018)

Without Donor Restrictions 2019 2018 REVENUES AND OTHER SUPPORT

ART revenues$ 14,916,979 $ 14,260,453 Grant revenues 1,941,774 1,725,154 Program revenues 93,054 378,515 Membership dues 64,158 57,448 Other income 319,460 399,773

TOTAL REVENUES AND OTHER SUPPORT 17,335,425 16,821,343

EXPENSES

Program services Route 20 operating expenses 6,840,911 6,675,367 Grant expenses 936,344 812,645 Other program expenses 9,198,127 8,870,921 Supporting services General and administrative expenses 1,522,391 1,179,378

TOTAL EXPENSES 18,497,773 17,538,311

CHANGE IN NET ASSETS (1,162,348) (716,968)

NET ASSETS, Beginning of Year 6,013,621 6,730,589

NET ASSETS, End of Year $ 4,851,274 $ 6,013,621

See accompanying independent auditor’s report and notes to the consolidated financial statements. 4

ANAHEIM TRANSPORTATION NETWORK CONSOLIDATED STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED JUNE 30, 2019 (WITH COMPARATIVE TOTALS FOR 2018)

Supporting Program Services Services

General and Route 20 Grant Other Program Administrative 2019 2018 Expenses: Transit service expenses$ 4,123,258 $ - $ 3,620,910 $ - $ 7,744,168 $ 7,188,221 Transit service expenses - other 7,472 229,411 7,472 - 244,355 305,036 Automotive expenses - - 9,878 - 9,878 9,092 Repairs and maintenance 460,911 - 727,538 - 1,188,449 1,236,992 Fuel 847,054 - 994,182 - 1,841,236 1,762,479 Salaries and benefits 1,030,442 166,911 1,020,311 470,279 2,687,943 2,604,697 Payroll taxes 75,920 12,238 74,874 37,558 200,590 191,160 Local grants: Local formula grant - 218,945 - - 218,945 101,721 DOT grant - - - - - 27,318 Insurance: Property 33,424 - 33,424 - 66,848 53,263 General 15,151 - 15,151 - 30,302 25,151 Pollution liability - - 15,906 - 15,906 10,585 Workers' compensation 75,473 - 75,473 - 150,945 166,804 Crime - - 2,654 - 2,654 2,250 Professional and legal services 53,005 308,839 122,685 318,900 803,429 730,296 Marketing - - - 373,085 373,085 159,685 Website maintenance - - - 36,215 36,215 54,155 Payroll processing fees - - - 1,789 1,789 13,959 Participation usage credit - - 168,062 - 168,062 168,422 Kiosk merchant fees - - 99,647 - 99,647 56,700 Mobile ticketing service fees - - - - - 18,755 ART transit passes - - 3,531 - 3,531 1,971 Rideshare transit passes - - 12,036 - 12,036 8,926 Telecommunication 73,789 - 74,407 - 148,196 166,966 Utilities - - 101,764 - 101,764 91,934 Facility rental - - 33,381 9,531 42,912 56,708 Storage rent - - - - - 1,902 Furniture and equipment 12,280 - 172,631 - 184,911 105,375 Depreciation - - 1,409,518 - 1,409,518 1,543,574 Board meeting expenses - - - 4,358 4,358 4,038 Meals and Enertainment - - 10,801 - 10,801 23,045 General travel and promotion - - 43,989 41,107 85,096 43,813 Conference expenses - - 19,525 - 19,525 6,138 Professional development and training - - 928 - 928 5,028 Supplies 29,447 - 123,406 - 152,853 184,581 Postage expenses - - 7,967 - 7,967 11,054 Dues and subscriptions - - 49,757 - 49,757 58,920 Bank charges - - - 28,519 28,519 9,976 Credit card fees - - 54,197 - 54,197 52,042 Interest - - - 181,147 181,147 162,771 Taxes and licenses - - 77,412 8,010 85,422 71,470 Charitable giving - - - 9,900 9,900 4,826 Miscellaneous 3,286 - 14,710 1,993 19,989 36,512

Total expenses$ 6,840,911 $ 936,344 $ 9,198,127 $ 1,522,391 $ 18,497,773 $ 17,538,311

See accompanying independent auditor’s report and notes to the consolidated financial statements. 5

ANAHEIM TRANSPORTATION NETWORK CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2019 (WITH COMPARATIVE TOTALS FOR 2018)

2019 2018 CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets $ (1,162,348) $ (716,968) Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation 1,409,304 1,543,788 Change in assets and liabilities: Accounts receivable (514,602) (118,906) Fuel credit receivable 183,334 (266,539) Prepaid expenses 11,697 (25,064) Inventory 8,309 7,982 Accounts payable (136,106) 1,385,007 Credit card payable 264,448 20,673 Accrued and other liabilities 63,196 (527,539) Unearned revenue (66,415) (6,510)

NET CASH PROVIDED BY OPERATING ACTIVITIES 60,818 1,295,924

CASH FLOWS FROM INVESTING ACTIVITIES Purchases of certificates of deposit (2,707) (4,897) Reinvested interest income - - Purchases of property and equipment (406,146) (672,554)

NET CASH USED IN INVESTING ACTIVITIES (408,853) (677,451)

CASH FLOWS FROM FINANCING ACTIVITIES Principal payments on notes and loans payable 1,374,854 (118,291) Proceeds from/(payments on) line of credit - (100,000) Payments to refinance notes and loans payable (3,544,203) - Proceeds from issuance of notes and loans payable 3,544,203 - Payments on capital lease obligations (1,596,283) (258,007)

NET CASH USED IN FINANCING ACTIVITIES (221,429) (476,298)

NET CHANGE IN CASH AND CASH EQUIVALENTS (569,465) 142,175

CASH AND CASH EQUIVALENTS, Beginning of Year 659,941 517,766

CASH AND CASH EQUIVALENTS, End of Year $ 90,477 $ 659,941

NON-CASH INVESTING AND FINANCING ACTIVITIES Property and equipment funded by capital lease borrowings $ - $ -

Supplemental Disclosure of Cash Flow Information: Cash paid for interest $ 181,147 $ 162,771

Cash paid for taxes$ 67,120 $ 71,740

See accompanying independent auditor’s report and notes to the consolidated financial statements. 6

ANAHEIM TRANSPORTATION NETWORK NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2019

NOTE 1 – NATURE OF THE ORGANIZATION

The Anaheim Transportation Network (the Organization) was formed in September 1995, as a California non-profit organization, tax-exempt under Section 501(c)(4) of the Internal Revenue Code (IRC). The Organization provides transportation coordination services to businesses, employees, and visitors of the Anaheim resort area. The Organization's primary goal is to mitigate traffic and air quality problems and enhance transportation options by providing reliable and efficient, clean energy transportation solutions in Anaheim. The Organization receives its primary funding from fares, local membership assessments and Subrecipient Funds through Federal Transportation programs. Members of the Board of Directors are elected by voting members made up of local businesses serviced by the Organization. In the event of the dissolution of the Organization, the remaining assets will be distributed to other non-profits.

ART Transportation Program

The City of Anaheim (the City) has designated the Organization its Municipal Transportation Operator. Working with the local business community, the City and Orange County Transportation Authority (OCTA), the Organization created a high quality, clean fuel transportation system for the Anaheim Resort, Platinum Triangle, Center City and other areas of interest. The Anaheim Resort Transportation (ART) fleet is composed of LNG, CNG, electric, and LPG vehicles. ART provides services to commuters, residents and visitors to Anaheim allowing them to access the event centers, shopping, dining, and evening entertainment in the area. ART also operates a New, On Demand, Microtransit services utilizing slow speed electric neighborhood vehicles, known as FRAN (Free Rides Around the Neighborhood), in the Center City area. This services allows patrons to park in available parking facilities and take FRAN to local business establishments and civic uses.

General Membership Programs

The Organization has a membership program that provides a variety of services and benefits to members including, but not limited to, regulatory compliance assistance with Rule 2202 (Ridesharing Rule), legislative and regulatory tracking, and other transportation related services.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Basis of Financial Presentation

This summary of significant accounting policies of the Organization is presented to assist in understanding the Organization’s consolidated financial statements. The consolidated financial statements and notes are representations of the Organization’s management, who is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America (U.S. GAAP) and have been consistently applied in the preparation of the consolidated financial statements.

The net assets of the Organization and changes therein are classified and reported as follows:

 Net assets without donor restrictions – Net assets that are not subject to donor-imposed stipulations and that may be expendable for any purpose in carrying out the Organization’s mission.

 Net assets with donor restrictions – Net assets to be held in perpetuity as directed by donors. The income from the contributions is available to support activities of the Organization as designated by the donors. As of June 30, 2019, the Organization had no net assets with donor restrictions.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

B. Principles of Consolidation

The consolidated financial statements include the accounts of Anaheim Transportation Network and its wholly owned subsidiary ATN Asset Holding Company, LLC (collectively referred to as the “Organization”). All material intercompany accounts, transactions, and profits were eliminated in the consolidated financial statements.

C. Cash and Cash Equivalents

The Organization considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents.

The Organization maintains its cash and cash equivalents in multiple financial institutions. Deposits held with these financial institutions may exceed the amount of insurance provided on such deposits. The balance is insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC). Balances in excess of FDIC insurance amounted to $443,407, as of June 30, 2019. Management does not believe that the Organization is subject to any unusual financial risk beyond the normal risk associated with commercial banking relationships. The Organization has not experienced any losses on its deposits of cash and cash equivalents.

D. Investments

Investments are comprised entirely of certificates of deposit and are stated at cost, adjusted for premiums and discounts, which approximates fair value, and are intended to be held until maturity. Interest income is accrued when earned.

E. Accounts Receivable

Accounts receivable are recorded at book value, net of the allowance for doubtful accounts. The Organization extends credit to its customers, substantially all of whom are businesses operating in Anaheim, California. Collateral is generally not required. Credit losses are provided for in the allowance for doubtful accounts based on management’s historical experience. Management has determined that an allowance is not necessary as of June 30, 2019.

F. Inventory

Inventory consists of bus ticket stock as well as maintenance parts for the buses. Such inventory is valued on the first-in first-out basis at the lower of cost or market.

G. Property and Equipment

Property and equipment are reported at cost at the date of purchase or estimated fair value at the date of donation, net of accumulated depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets. Property and equipment consist of land, buildings, furniture and equipment, and vehicles. The estimated useful lives of assets are as follows: buildings and improvements – forty years, vehicles – three to seven years, furniture and equipment – five to ten years.

H. Unearned Revenue

Unearned revenue is comprised of amounts received for advertising and member assessment fees received in advance. Unearned revenue is classified as a liability, and recognized as revenue over the period in which services are provided.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

I. Advertising

Advertising costs are charged to operations when incurred. Advertising costs for the year ended June 30, 2019, totaled $327,928.

J. Functional Expenses

Expenses are allocated on a functional basis among the various programs. Expenses that can be identified with a specific program are allocated directly to that program according to the natural expense classification.

K. Expense Allocation

General and administrative expenses are allocated to various programs based on management's judgment.

L. Tax Exempt Status

The Organization has qualified for tax exempt status under Section 501(c)(4) of the IRC and, generally, is subject to state and federal income taxes on any net income that is derived from a trade or business, regularly carried on, and not in furtherance of the purpose for which the Organization was granted exemption. For the year ended June 30, 2019, the Organization earned income related to unrelated business activities. Income tax expense for the year ended June 30, 2019, on unrelated business income received during the year consists of franchise income tax of $8,010. The Organization has recognized no interest or penalties related to unrelated business activities and does not expect material changes within the next twelve months. The Organization believes it is no longer subject to income tax examinations to federal and state taxing authorities for years prior to 2016.

M. Use of Estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

N. Implemented Accounting Pronouncements

On August 18, 2016, the Financial Accounting Standard Board (FASB) issued Accounting Standards Update (ASU) 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities. The amendments in this update are designed to improve the current net assets classification requirements and the information presented in the financial statements and notes about a not-for-profit entity’s liquidity, financial performance, and cash flows. The amendments of this ASU are effective for annual financial statements issued for fiscal years beginning after December 15, 2017. The Organization has adjusted the presentation of these consolidated statements accordingly. The ASU has been applied retrospectively to all periods presented.

O. Upcoming Accounting Pronouncements

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

O. Upcoming Accounting Pronouncements (Continued)

the option to elect certain practical expedients as defined within ASU 2014-09; or b) retrospective with the cumulative effect of initially applying ASU 2014-09 recognized at the date of the initial application and providing certain additional disclosures as defined in ASU 2014-09. Management has not yet selected a transition method and is currently evaluating the impact this updated standard will have on the consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which sets out the principles for the recognition, measurement, presentation, and disclosure of leases for both parties to a contract. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchased by the lessee. This classification will determine lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than twelve months regardless of their classification. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases, and operating leases. The standard is effective on January 1, 2020, with early adoption permitted. Management is currently evaluating the effect this updated standard will have on the consolidated financial statements.

P. Summarized Information for 2018

The financial statements include certain prior year summarized comparative information in total but not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with U.S. GAAP. Such information should be read in conjunction with the Organization’s financial statements for the year ended June 30, 2018, from which the summarized information was derived. Certain amounts presented in the prior year’s data may have been reclassified to be consistent with the current year's presentation.

NOTE 3 – LIQUIDITY AND AVAILABILITY

As of June 30, 2019, the following table shows the total financial assets held by the Organization and the amounts of those financial assets that could readily be made available within one-year of the balance sheet date to meet general expenditures:

2019

Financial assets held at year-end: Cash$ 90,477 Investments 693,407 Accounts receivable 3,974,362 Fuel credit receivable 465,959

5,224,205 Less: Donor restrictions - Financial assets available to meet expenditures over the next 12 months$ 5,224,205

The Organization has assets limited to use of donor-restricted purposes. These assets are not available for general expenditure within the next year.

NOTE 4 – CONCENTRATIONS

Effective March 18, 2010, the Organization entered into a contractual agreement with Disneyland Resort, a division of Walt Disney Parks and Resorts U.S.A., Inc. The Organization is providing a public transit route, Route 20, which is an express downtown circulatory service to connect various Anaheim Resort parking facilities and the East Esplanade – the main transportation center for Disneyland Resort. Disneyland Resort agreed to compensate the Organization for all associated start-up costs and operating expenses through an assessment fee. For the year ended June 30, 2019, the Organization received $7,023,744 of its total revenue from Disneyland Resort. Termination of this contract by either party could negatively affect the revenues of the Organization and the Organization’s results of operations.

The Organization engages in substantially all of its business within the City. Significant downturns in the local economy could impact the Organization’s profitability. The Organization believes that the City is committed to fuel efficient public transportation and, therefore, represents a low economic risk.

NOTE 5 – ACCOUNTS RECEIVABLE

Accounts receivable as of June 30, 2019, are comprised of the following:

2019

City of Anaheim$ 45,868 Walt Disney Parks and Resorts U.S.A., Inc. 1,493,884 Other receivables 579,095 Accrued grant receivables 1,855,515 Alternative fuel credit receivable 465,959

Total accounts receivable$ 4,440,321

NOTE 6 – FEDERAL FUNDING ASSISTANCE

OCTA is the designated grant recipient for the Department of Transportation’s (DOT) Federal Transit Administration (FTA) Section 5307 Urbanized Area Formula Grant funds and FTA Section 5339 Discretionary Capital Grant funds for Orange County. The Organization has been deemed an eligible subrecipient to receive FTA Section 5307 Urbanized Area Formula Grant funds and FTA Section 5339 Discretionary Capital Grant funds. OCTA and the Organization entered into a cooperative agreement allowing OCTA to pass awarded federal grant funds to the Organization. The Organization will use the federal financial assistance for preventative maintenance on transportation equipment, bus replacement, and other capital projects falling within the compliance guidelines as established by OCTA, FTA, DOT, and other relevant governing bodies.

NOTE 6 – FEDERAL FUNDING ASSISTANCE (Continued)

2019

Grant receipts: Section 5307 - Urbanized Area Formula Grant $ -

Grant disbursements: Section 5307 - Urbanized Area Formula Grant 1,375,406

Amount to be refunded$ 1,375,406

On April 26, 2018, the Organization received a full grant award for $28,617,000 from the California State Transit Assistance (CalSTA) Fund, the DOT, and the Transit and Intercity Rail Capital Program (TIRCP). The award would fund forty Zero Emission Buses, MicroTransit Service, and partial funding for the Organization’s new facility. The project began in 2019 and will continue through the end of fiscal year 2024.

As of June 30, 2019, the Organization has purchased ten (10) small electric vehicles for micro transit. Grant receipts and disbursements for the year ended June 30, 2019 was as follows:

2019

Grant receipts: TIRCP Grant$ -

Grant disbursements: TIRCP Grant 480,109

Amount to be refunded$ 480,109

NOTE 7 – PROPERTY AND EQUIPMENT

Property and equipment consisted of the following at June 30, 2019:

2019

Land $ 2,250,000 Furniture and equipment 993,609 Building and improvements 1,313,713 Vehicles 11,630,527

Total 16,187,849 Less: accumulated depreciation (8,849,196)

Property and equipment, net$ 7,338,653

Depreciation expense for the year ended June 30, 2019, amounted to $1,409,304.

NOTE 8 – CAPITAL LEASE

On October 21, 2016, the Organization signed a capital lease for four buses for $2,000,000. The lease will be payable in eighty-four consecutive monthly payments of $27,421 of both principal and interest, commencing on December 5, 2016, and maturing on November 5, 2023. The lease charges an interest rate of 4.09%. This lease was closed and refinanced with a note payable during December 2018. See Note 9.

NOTE 9 – NOTES AND LOANS PAYABLE

2019

Loan payable, interest at 3.950% per year beginning January 1, 2015, and payable in 120 monthly installments of $11,885. Secured by the property at 1354 S. Anaheim Blvd.$ -

Loan payable, interest at 5.063% per year beginning January 1, 2019, and payable in 60 monthly installments of $12,148 with a final payment of $1,831,913. Secured by the property at 1354 S. Anaheim Blvd. 2,029,365

Loan payable, interest at 4.85% per year beginning January 6, 2019, and payable in 84 monthly installments of $21,014. Secured by four electric buses. 1,403,538

Total notes and loans payable$ 3,432,903

Future principal payments are as follows:

Four Electric Property Loan Buses Note Note Payable Payable Total Years Ending June 30, Amount Amount Amount

2020$ 42,305 $ 187,756 $ 230,061 2021 44,813 197,582 242,395 2022 47,168 207,381 254,549 2023 49,648 217,665 267,313 2024 1,845,431 228,460 2,073,891 Thereafter - 364,694 364,694

Total$ 2,029,365 $ 1,403,538 $ 3,432,903

NOTE 10 – COMMERCIAL CREDIT CARDS

Effective August 1, 2018, the Organization obtained commercial credit cards with a credit card company. The credit limit is $265,000 with a variable interest rate. Interest shall only be payable if the account is not settled by the monthly due date and becomes past due. As of June 30, 2019, the Organization owed a balance of $185,372.

Effective December 6, 2018, the Organization obtained commercial credit cards with its bank. The credit limit is $850,000 with variable interest rate of 9.99%. Interest shall only be payable if the account is not settled by the monthly due date and becomes past due. As of June 30, 2019, the Organization owed a balance of $301,374.

NOTE 11 – OTHER INCOME

For the year ended June 30, 2019, other income consisted of the following:

2019

Alternative fuel tax credit$ 294,762 Interest income and miscellaneous 24,698

Total$ 319,460

NOTE 12 – INVENTORY

Inventory consisted of the following as of June 30, 2019:

2019

Maintenance parts$ 171,833 Bus ticket stock 19,582

Total$ 191,415

NOTE 13 – ENVIRONMENTAL CONTINGENT LIABILITY

As of June 30, 2019, the Organization is not aware of any certain contingent environmental liabilities that may eventually result in the payment of substantial monetary claims to third parties. The likelihood of this liability is remote and not reasonably possible to estimate. The Organization does not believe that any environmental contingent liability, if any, will result in material expenses.

NOTE 14 – RETIREMENT PLAN

Starting January 1, 2016, the Organization provides a matching contribution up to 2.5% of an employee’s salaries and wages. Employees must contribute to the Plan in order to be eligible to receive the match. For the year ended June 30, 2019, the Organization contributed $20,288.

NOTE 15 – COMMITMENTS AND CONTINGENCIES

Commitments

The Organization leases its administration office and ticket window at ARTIC from the City of Anaheim as well as a parking lot for buses. The Organization paid $42,912 in rent expense for the facility for the year ended June 30, 2019.

In addition, the Organization leases numerous pieces of equipment. The Organization paid $32,894 in lease payments on equipment for the year ended June 30, 2019.

Future minimum lease payments for the next five years are as follows:

Years Ending June 30, Amount

2020$ 4,166

Total$ 4,166

The Organization leases its Liquefied Natural Gas (LNG) fuel tank under an operating lease. The monthly fee is based on fuel usage and current fuel costs. For the year ended June 30, 2019, the Organization paid $407,296 in fees under this lease.

The Organization has placed an order for forty-two (42) electric battery operated zero emissions buses in May 2019. The buses are in the process of being built as of year-end. See Note 6 for Federal Funding Assistance for more information.

Contingencies

Grant awards require the fulfillment of certain conditions as set forth in the instruments of grant. Failure to fulfill the conditions could result in the return of the funds to the grantors. The Organization deems this contingency remote since, by accepting the grants and their terms, it has accommodated the objectives of the organization to the provisions of the grants. The Organization’s management is of the opinion that the Organization has complied with the terms of all grants.

NOTE 16 – SUBSEQUENT EVENTS

Management of the Organization has evaluated its financial position and activities from the June 30, 2019 year-end of this report through November 20, 2019, which is the date the financial statements were available to be issued.

Subsequent to year-end June 30, 2019, and prior to the report issuance, the Organization accepted funding from the FTA for 2019 Low or No Emission Vehicle Program 5339(c) and executed a Cooperative Pass-Through Funding Agreement with Southern California Association of Governments (SCAG) for $2,000,000.

The Organization approved procuring Construction Services Agreements to build a new solar-powered maintenance facility to accommodate the new fleet of vehicles not to exceed $11,000,000. Refer to Note 14 Commitments and Contingencies for purchase of buses and vehicles.

No other material subsequent event items that required recognition or disclosure were identified.

CONSOLIDATED SUPPLEMENTARY INFORMATION

ANAHEIM TRANSPORTATION NETWORK SCHEDULE I – CONSOLIDATED STATEMENT OF ART, GRANT, AND PROGRAM REVENUES AND MEMBERSHIP DUES FOR THE YEAR ENDED JUNE 30, 2019 (WITH COMPARATIVE TOTALS FOR 2018)

2019 2018 ART revenues: Route 20 assessments$ 7,023,744 $ 6,361,836 ART ticket sales 4,215,508 4,120,124 Hotel and retail assessments 2,584,698 2,437,710 Advertising 571,730 817,131 Group sales 412,077 389,866 Kiosk lease 89,500 108,500 Metrolink Route 15 2,822 3,278 Amtrak 16,900 22,008

Total ART revenues 14,916,979 14,260,453

Grant revenues: Local grants: Section 5339 181,371 91,000 Section 5307 748,330 749,818 Local grants (ATID, Costa Mesa, Center City Anaheim) 534,978 884,336 TIRCP Grant 477,095 -

Total grant revenues 1,941,774 1,725,154

Program revenues: Downtown bus service 88,935 284,389 Rideshare transit passes 4,119 5,645 Costa Mesa service - 78,993 Commuter incentives - 9,488

Total program revenues 93,054 378,515

Membership dues 64,158 57,448

Total ART, grant, and program revenues and membership dues$ 17,015,965 $ 16,421,570

See accompanying independent auditor’s report and notes to the consolidated financial statements. 16

ANAHEIM TRANSPORTATION NETWORK SCHEDULE II – CONSOLIDATED STATEMENT OF OTHER INCOME FOR THE YEAR ENDED JUNE 30, 2019 (WITH COMPARATIVE TOTALS FOR 2018)

2019 2018

Other income Alternative fuel tax credit $ 294,762 $ 392,817 Miscellaneous and interest income 24,698 3,920 Gain on disposal of equipment - 3,036

Total other income$ 319,460 $ 399,773

See accompanying independent auditor’s report and notes to the consolidated financial statements. 17 2019 ATN STAKEHOLDER REPORT

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Appendix 7 2020 Legislative Priorities

E | P a g e Anaheim Transportation N e t w o r k

Anaheim Transportation Network

2020/21 Legislative Platform

With over 9.7 million passengers using Anaheim Transportation Network’s (ATN) services every year, ATN continues to provide key mobility solutions in-and-around The Anaheim Resort®, Platinum Triangle™, Center City Anaheim, and surrounding Orange County cities. With guidance and support of the Board of Directors, ATN strives to provide high quality multi-modal transit services for our areas growing residential, employment and travel markets.

ATN’s service portfolio is designed to support and work cooperatively with the County’s primary transportation agency, Orange County Transportation Authority (OCTA), as well as other transportation providers in Southern California. By working collaboratively with OCTA, LA Metro, Metrolink, and Amtrak’s Pacific SurfLiner, play an important role in ensuring a seamless, convenient and cost-effective transit experience for all who use the regional system.

The 2020/21 Local, State and Federal Legislative Platform serves as a framework to guide ATN’s policy, administrative, and regulatory activities for the upcoming legislative session.

The Key Policy Issues section below offers guidance on policy direction specific to the Local, State and Federal priorities and initiatives of ATN. Positions on individual items not directly addressed in this document will be brought to the ATN Executive Committee and Board of Directors for discussion and potential action.

ADOPTED: NOVEMBER 20, 2019

LOCAL LEGISLATIVE PLATFORM – KEY POLICY ISSUES

Anaheim Mayor Harry Sidhu has formed a Transportation Task Force to develop a comprehensive mobility vision for the City of Anaheim. Combined with the on-going Mobility Study in The Anaheim Resort®, new developments in The Platinum Triangle™ and residential expansion in Center City Anaheim, the availability of dynamic, multimodal transportation services are central to meeting our passengers transit needs and the economic development and vitality of our area. ATN plays a key role in identifying and defining legislative priorities and funding options to secure sustainable and long-term operations for current and future transportation initiatives in Anaheim.

The following represent ATN’s local legislative priorities to best serve the residents, employees, visitors of Anaheim, and other communities currently served by ATN. Seek policy changes and funding in support of these services:

1. In concert with the Mayor’s transportation task force and resulting vision, develop and implement local transportation services along identified priority corridors based on the latest available technology, such as zero emission applications, autonomous and connected vehicles and other technology-driven solutions.

2. Continue electrification of ATN’s fleet under #ElectrifyAnaheim initiatives to build out facilities and services that are environmentally and financially sustainable.

3. Continue development and completion of ATN’s new facilities.

4. Work with Anaheim Public Utilities on the charging needs related to ATN’s growing electric bus fleet.

5. Work with City staff to secure and support efforts to strengthen mitigation monitoring programs to ensure transportation planning occurs in concert with development approval processes.

STATE LEGISLATIVE PLATFORM – KEY POLICY ISSUES

Since mid-1970, the Transportation Development Act (TDA) has long been a cornerstone of State transit funding. This law allows quarter-cent sales tax financing for a wide variety of transportation projects, including transit operations and bus replacement. Governor Newsom directed Caltrans and California Transit Association to conduct a thorough review of TDA and propose legislative changes to bring TDA in to the 21st Century. In the upcoming State legislative session, changes to TDA will be introduced providing ATN with a window of opportunity for eligibility to receive TDA and other, related transportation funds.

In 2017, Governor Brown signed into law Senate Bill 1 (SB1 – Beall) making significant investments in the State’s transportation system. Even though ATN was successful in obtaining SB1 funds under Transit Intercity Rail Capital Program (TIRCP), with codified changes to the Anaheim Municipal Code, through the its Franchise Agreement, ATN should seek formula and Low Carbon Transit Operation Program (LCTOPs) funding edibility under SB1.

Securing stable and sustainable funding, both grant and formula, would provide long-term funding and operational certainty to support Mayor Sidhu’s Transportation Task Force initiatives and vision for corridor and MicroTransit e-haul initiatives to connect destinations, neighborhoods and employment hubs in support of Anaheim’s economic development and vitality.

The following represent ATN’s State legislative priorities to best serve the residents, employees, visitors of Anaheim and other communities currently served by ATN. Seek policy changes and funding in support of these services:

1. Pursue efforts to maximize ATN’s share of transportation, transit and mobility funding based on ridership and standard transit formula funding.

2. Support regulatory policy and guidance to continue electrification efforts and growth of zero emission technologies.

3. Pursue and support creation of formula-based funding programs under Cap-and-Trade program to assist with adopted environmental regulations.

4. Should the State of California take measures to adopt new and/or increased gasoline taxes, user fees, fees for fuel consumption, revenues from enhancements and/or new fees such as Vehicle Miles Traveled (VMT), ATN shall seek inclusionary legislative language to ensure eligibility for such funds.

5. Support citing of transit-oriented development and development-oriented transit projects (in consideration of the housing element), including incentives for development and furtherance of transportation funding eligibility for ATN.

6. Support efforts to encourage and incentivize interoperability of transit systems within California.

LEGISLATION

ATN may evaluate sponsoring legislation to obtain codification as an eligible recipient of State transportation funds in order to advance ATN’s initiatives and better meet the community’s transit needs. ATN will work with the City of Anaheim, State Legislators, other transportation providers and stakeholders, to identify opportunities to further local transportation and mobility needs of Anaheim citizenry and constituency.

FEDERAL LEGISLATIVE PLATFORM – KEY POLICY ISSUES

Several significant policy issues are expected in the upcoming congressional legislative session, such as enactment of the surface transportation reauthorization legislation and funding of future capital transportation projects.

Current federal law prohibits requests for annual appropriations. However, bi-partisan efforts have been underway to reverse this policy through re-authorization. Should funding be restored for specially directed projected, known as “earmarks,” ATN shall work with its congressional delegation to secure funding for identified priority projects.

ATN’s Federal Legislative Platform is focused on securing the largest possible share of federal transportation funds through equitable formula allocation of funds due to ATN through the regulatory processes, such as of direct recipient and grant funding eligibility.

REAUTHORIZATION PRIORITIES

Fixing America’s Surface Transportation (FAST) Act provides nation’s funding for all transportation modes. The FAST Act expires on September 30, 2020. ATN shall focus its advocacy efforts to strengthen eligibility of small transportation agencies to allow for a more equitable distribution of federal funds.

As such, ATN will advocate for the following through the reauthorization process to best serve the residents, employees, visitors of Anaheim, and other communities currently served by ATN. Seek policy changes and funding in support of these services:

1. Seek the greatest possible allocation of federal transportation funds focusing on an increased share of formula funds for the ATN.

2. Pursue eligibility of grant submission directly to the applicable federal agencies.

3. Support efforts to clarify roles for state and local transportation providers, as well as the private sector, for development of innovative funding strategies to improve mobility, i.e. private public partnerships (P3), revenue and naming rights contracts, facilitation and monetization of private mobility providers’ services, etc.

4. Advocate for the creation of new funding source that all agencies and municipal governments to develop innovative transportation solutions and delivery models.

5. Advocate policies that advance “Complete Streets” approach to multi-modal project planning and delivery methods.