Southern California Regional Rail Authority

BOARD OF DIRECTORS SEPTEMBER 25, 2020

Board of Directors Meeting Meeting Date: September 25, 2020

BOARD ROSTER SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY

County Member Alternate

Ventura: Brian Humphrey (Chair) Tony Trembley 1 vote Citizen Representative Mayor VCTC Board City of Camarillo VCTC Board

Los Angeles: Ara Najarian (Vice-Chair) Walter Allen, III 4 votes Mayor Council Member City of Glendale City of Covina Metro Board Metro Appointee

Kathryn Barger Roxana Martinez Supervisor, 5th District Metro Appointee County of Los Angeles Metro Board

Paul Krekorian Pam O’Connor Councilmember, 2nd District Metro Appointee City of Los Angeles Metro Board

Hilda Solis Paul Philips Supervisor, 1st District Metro Appointee County of Los Angeles Metro Board

San Bernardino: Larry McCallon (2nd Vice-Chair) Javier Dutrey* 2 votes Mayor Mayor City of Highland City of Montclair SBCTA Board SBCTA Board

Alan D. Wapner Ray Marquez* Council Member Council Member City of Ontario City of Chino Hills SBCTA Board SBCTA Board

SCRRA Board of Directors Roster Page 2

Orange: Andrew Do Mark A. Murphy* 2 votes Supervisor, 1st District Mayor County of Orange City of Orange OCTA Board OCTA Board

Doug Chaffee Supervisor, 4th District County of Orange OCTA Board

Riverside: Andrew Kotyuk Brian Berkson* 2 votes Mayor Pro Tem Mayor City of San Jacinto City of Jurupa Valley RCTC Board RCTC Board

Karen Spiegel Jeff Hewitt* Supervisor, 2nd District Supervisor, 5th District County of Riverside County of Riverside RCTC Board RCTC Board

EX-OFFICIO MEMBERS

San Diego Association of Governments:

[CURRENTLY AWAITING APPOINTMENT]

Contact: Linda Culp Principal Planner – Rail

Southern California Association of Governments:

Art Brown Mayor, City of Buena Park

State of California: John Bulinski District Director, Caltrans District 7

Alternate: Paul Marquez Deputy District Director for Planning, Caltrans District 7

*Alternate represents either member

Updated: 07.17.20 BOARD OF DIRECTORS MEETING

FRIDAY, SEPTEMBER 25, 2020 – 10:00 AM RIVERSIDE CONF RM, 12TH FL 900 WILSHIRE BLVD LOS ANGELES, CA 90017 ONLINE ACCESS: HTTPS://METROLINKTRAINS.COM/MEETING IN ACCORDANCE WITH GOV. NEWSOM'S EXEC ORDER N-29-20 SIGNED 3/17/2020

AGENDA DESCRIPTIONS The agenda descriptions are intended to give notice to members of the public of a brief general description of items of business to be transacted or discussed. The posting of the recommended actions does not indicate what action will be taken. The Authority may take any action that it deems to be appropriate on the agenda item and is not limited in any way by the notice of the recommended action. The Chair reserves the right to discuss the items listed on the agenda in any order.

A person with a disability may contact the Board Secretary’s office at (213) 452-0255 or via email [email protected] at least 72-hours before the scheduled meeting to request receipt of an agenda in an alternative format or to request disability-related accommodations, including auxiliary aids or services, in order to participate in the public meeting. Later requests will be accommodated to the extent feasible.

SUPPORTING DOCUMENTATION The agenda, staff reports and supporting documentation are available from the Board Secretary, located at 900 Wilshire Blvd., Suite 1500, Los Angeles, CA 90017, and on the Metrolink website at www.metrolinktrains.com under About > Agendas & Documents.

PUBLIC COMMENTS ON AGENDA ITEMS AND ITEMS NOT ON THE AGENDA Members of the public wishing to address the Board of Directors regarding any item appearing on the agenda or any item not on the agenda, but within the subject matter jurisdiction of the Board, may do so by completing a Speaker’s Form and submitting it to the Board Secretary. All speakers will be recognized by the Chairman and will be considered under Item 5 (Public Comment). When addressing the Board, please state your name for the record. Please address the Board as a whole through the Chair. Please note comments to individual Board members or staff are not permitted when addressing the Board. A speaker’s comments shall be limited to three (3) minutes.

Board of Directors Meeting Meeting Date: September 25, 2020

1. Call to Order

2. Safety Briefing

3. Special Board Recognition

4. Pledge of Allegiance

5. Roll Call

6. Public Comment

7. Approval of Consent Calendar Items: 12A - 12Q. All Consent Calendar items are listed at the end of the agenda.

8. REGULAR CALENDAR

8.A Adoption of the Authority's Proposed FY2020-21 Operating and Capital Program Budgets

The Authority is required, under the Joint Powers Authority (JPA), to provide to its Member Agencies, on or before May 1 of each year, a Proposed Budget for the coming fiscal year (effective July 1, the start of the fiscal year) for individual agency consideration and approval. The impact of the novel coronavirus (COVID-19) disrupted the ability of the Authority to transmit a proposed budget by the annual deadline. On July 24, 2020, the Board approved the transmission of a budget incorporating the fiscal realities from COVID-19 to the Member Agencies.

AUDIT AND FINANCE COMMITTEE conducted a public hearing on the Authority’s Proposed FY21 Budget; and

AUDIT AND FINANCE COMMITTEE UNANIMOUSLY RECOMMENDED the Board:

1. Adopt the Proposed FY21 Budget including: 2. Approve a mid-year budget review with potential adjustments to the FY21 Budget; 3. Approve a cash threshold increase from $25,000,000 to $50,000,000 to provide a level of liquidity sufficient to sustain operations for six (6) months in the wake of a catastrophic event; and 4. Adopt the FY21 Salary Resolution.

Approval of this item will result in the adoption of this budget and provide the fiscal authority for the FY2020-21 Operating and Capital Program Budgets.

Board of Directors Meeting Meeting Date: September 25, 2020

3 8.B Recovery Plan Framework

Last month, counties across Southern California made progress in terms of reducing the spread of COVID-19. As a result, some of the counties we serve are beginning to allow businesses and some schools to re-open in a more measured way, and as established by State guidelines. Four of the six counties we serve are listed as Tier 4 Widespread on the state tracking list. Two counties – Orange and San Diego – are listed as Tier 3, Substantial spread. It appears that the other four counties in which we operate are trending towards Tier 3 and may be out of Tier 4 shortly. This progress is very important to our recovery. Over the last few months, staff has presented updates on the development of the Recovery Plan Framework. Today, staff is presenting the Recovery Plan Framework for formal approval.

It is recommended that the Board:

1. Approve the Final Draft Recovery Plan Framework; and 2. Receive and File the update on our recovery efforts.

8.C Coronavirus Health and Safety Measures Prioritization Resolution

The Southern California Regional Rail Authority (SCRRA) system is critical to thousands of essential employees who are keeping Los Angeles, Orange, Riverside, San Bernardino and Ventura Counties operating during the public health crisis. All essential workers in five counties, including Metrolink employees and contractors, are the unsung heroes of this public health crisis; and SCRRA recognizes its responsibility to each passenger and employee to help them travel safely to their destination and back home to their families in good health.

The Board may adopt the resolution.

There is no budget impact as a result of adopting this resolution.

9. Chief Executive Officer's Report

Authority Update

10. Board Members' Comments

11. Chair's Comments

12. CONSENT CALENDAR

12.A Approval of Meeting Minutes - August 21, 2020 Special Board Meeting

It is recommended that the Board approve the Minutes of the August 21, 2020 Special Board Meeting. Board of Directors Meeting Meeting Date: September 25, 2020

12.B July Legislative Update

Staff provided an update on current legislative affairs.

EXECUTIVE COMMITTEE received and filed this report.

12.C Contract No. L175-20 - Federal Legislative Representation Services - Recommendation to Award - Chambers, Conlon & Hartwell, LLC, Kadesh & Associates, Potomac Partners DC (PPDC)

The Authority requires federal legislative advocacy services to maintain strategic relations and achieve policy priorities with the Administration, Congress, federal transportation agencies and regulatory bodies. These services are necessary to meet long-term service and funding goals of the Authority.

EXECUTIVE COMMITTEE RECOMMENDED (5-0) that the Board authorize the Chief Executive Officer to:

1. Award Contract No. L175-20, Federal Legislative Representation Services, subject to resolution of any protest timely filed, to a bench of qualified firms as listed below: L175A-20 – Chambers, Conlon & Hartwell, LLC L175B-20 – Kadesh & Associates L175C-20 – Potomac Partners DC (PPDC) 2. Approve a not-to-exceed contract funding authorization amount of $720,000 for the base term for the Bench advocacy services. The term of each contract shall be for one two-year base, with two two-year options that may be exercised at the sole discretion of the Authority.

The amounts for which contract authority is requested, are included in, and are contingent upon the adoption of the Proposed FY2020-21 Operating Budget ($360,000). Funding for subsequent years will be requested through the annual budget or an equivalent process. There is no financial commitment with respect to subsequent years and work will be authorized only if funding is approved.

12.D Contract No. L176-20 - State Legislative Representation Services - Recommendation to Award - Shaw Yoder Antwih Schmelzer & Lange

The Authority requires an advocacy team to provide State Legislative Board of Directors Meeting Meeting Date: September 25, 2020

5 Representation Services.

EXECUTIVE COMMITTEE RECOMMENDED (5-0) that the Board authorize the Chief Executive Officer to award Contract No. L176-20 for State Legislative Representation Services to Shaw Yoder Antwih Schmelzer & Lange in an amount not-to-exceed $240,000 over the two year base period of Contract with two two-year options that may be exercised at the sole discretion of the Authority.

The annual amounts ($120,000) for which contract authority is requested, are included in, and are contingent upon the adoption of the Proposed FY2020-21 Operating Budget. Funding for subsequent years will be requested through the annual budget or an equivalent process. There is no financial commitment with respect to subsequent years and work will be authorized only if funding is approved.

12.E Updates to the Human Resources Policies and Procedures Manual

The current HR policy does not allow for compensatory time off for non-exempt employees and updates are needed to implement and ensure compliance with the Fair Labor Standards Act.

EXECUTIVE COMMITTEE RECOMMENDED (5-0) that the Board approve updates to:

1. HR Policy No. 2.0, Wage and Salary Administration – Overtime (Attachment A); and 2. HR Policy No. 3.0, Work Schedules and Hours – Hours of Work, Work Schedules, and Paydays (Attachment A).

There is no budgetary impact as a result of this report.

12.F Contracts No. JO134-21, JO135-21, and JO136-21 - Tie Rehabilitation Services - Recommendation to Award - Transdev Rail, Inc. and RailWorks Track Services

Track and Tie rehabilitation services are required to replace aged track and worn rail ties to prevent deterioration of existing track structure and assist in maintaining the railroad in a State of Good Repair.

CONTRACTS, OPERATIONS, MAINTENANCE, AND SAFETY COMMITTEE RECOMMENDED (5-0) the Board authorize the Chief Executive Officer to:

1. Award the following three Job Order Contracts (JOCs) for Track & Tie Rehabilitation Services to the lowest responsive and responsible bidders: Board of Directors Meeting Meeting Date: September 25, 2020

6 JO134-21- Transdev Rail, Inc. JO135-21- RailWorks Track Services JO136-21- Transdev Rail, Inc.

2. Approve a not-to-exceed contract funding authorization amount of $4,900,000 for each JOC.

The amounts for which contract authority is requested are included in the Adopted Capital Budgets for FY2018-19 and FY2019-20 ($12,700,000); Third Party Recollectable ($2,000,000). Funding for subsequent years will be requested through the annual budget or an equivalent process. There is no financial commitment with respect to subsequent years and work will be authorized only if funding is approved.

12.G Contract No. EP203R-21 - Maintenance of Way Equipment - Recommendation to Award - Harsco Metro Rail, LLC

The Authority requires a new Railroad Production and Switch Tamper and a new Dynamic Track Stabilizer to support field work along the Authority’s right- of-way.

CONTRACTS, OPERATIONS, MAINTENANCE, AND SAFETY COMMITTEE RECOMMENDED (5-0) the Board authorize the Chief Executive Officer to award Purchase Order No. EP203R-21, for the Maintenance of Way (MOW) Equipment, to Harsco Metro Rail, LLC for a contract funding authority amount not-to-exceed $3,453,397.00.

The amounts for which contract authority is requested are included in the Adopted Capital Budgets for FY2019-20 ($3,453,397.00).

12.H Contract No. SP514-20 - Strategic Business Plan - Status Update and Recommendation of Amendment - InfraStrategies LLC

The Authority is developing a Strategic Business Plan that will guide the Authority as the Metrolink system evolves into a fully integrated, cohesive system that transforms passenger rail in Southern California. Contract No. SP514-20 was awarded by the Board to Infrastrategies LLC on February 28, 2020 for consulting services to develop a Strategic Business Plan. The Board approved a not-to-exceed amount of $973,000 to support this effort. The Authority seeks to increase the not-to-exceed amount to address additional scope and higher level of effort than anticipated for engagement and investment scenario development activities.

CONTRACTS, OPERATIONS, MAINTENANCE, AND SAFETY COMMITTEE RECOMMENDED (5-0) the Board authorize the Chief Executive Officer to:

1. Execute an amendment to Contract No. SP514-20 with Infrastrategies LLC for additional effort to complete the Strategic Business Plan, conduct additional stakeholder engagement, and complete a supplementary State of Good Repair Financial Plan; and Board of Directors Meeting Meeting Date: September 25, 2020

7 2. Increase the contract funding authority by $334,120, from $973,000 to $1,307,120, in order to complete the Strategic Business Plan and new State of Good Repair Financial Plan.

The amount for which contract authority is requested are included in the FY18- 19 Carryforward Surplus earmarked to support CEO initiatives.

12.I System Safety and Compliance - Quarterly Update

Staff provided a quarterly update on the Authority’s safety and compliance status and activities, including strike data, reportable injuries, rule violations, compliance audits, regulatory inspections and public outreach. This update covered the 4th quarter of fiscal year (FY) 2020.

CONTRACTS, OPERATIONS, MAINTENANCE, AND SAFETY COMMITTEE received and filed this report.

There is no budgetary impact as a result of this report.

12.J Law Enforcement Activities - Quarterly Update

Staff provided a summary of the Authority’s law enforcement activities for Quarter 4 of Fiscal Year (FY) 2020.

CONTRACTS, OPERATIONS, MAINTENANCE, AND SAFETY COMMITTEE received and filed this report.

There is no budgetary impact as a result of this report.

12.K Performance Update on Contract No. OP136-10 Operator Services - Quarter Ended June 30, 2020

Staff provided an update on Contract No. OP136-10, Operator Services, with the National Railroad Passenger Corporation (Amtrak).

CONTRACTS, OPERATIONS, MAINTENANCE, AND SAFETY COMMITTEE received and filed this report.

12.L Operations Performance Status Report

This report presented an update on the Authority’s Operations Performance for the months of June and July 2020.

CONTRACTS, OPERATIONS, MAINTENANCE, AND SAFETY COMMITTEE received and filed this report.

12.M Internal Audit Policy Updates

The existing Internal Audit Policy needs to be updated to establish the Board of Directors Meeting Meeting Date: September 25, 2020

8 requirement to include copies of all audit reports in the Board agenda and to present certain corrective actions as discussed below for Board approval before corrective action implementation.

In addition, general “housekeeping” updates were made on the Internal Audit Policy to be better aligned with the Authority’s current practices as well as recent changes to applicable standards followed by the Department.

AUDIT AND FINANCE COMMITTEE RECOMMENDED (4-0) the Board approve the updated Internal Audit Policy.

There is no budgetary impact as a result of this report.

12.N Contract Audit: Project Cost Management: AV Line - Tunnel 25 Track Repairs Project No. 591901 (2020-10-CA)

The Internal Audit Department (Internal Audit) completed the Contract Audit: Project Cost Management - AV Line – Tunnel 25 Track Repairs Project No. 591901.

AUDIT AND FINANCE COMMITTEE received and filed this report.

12.O Fiscal Year (FY) 2020 Internal Quality Assurance Review

The Internal Audit Department (Internal Audit or IA) completed the FY 2020 Internal Quality Assurance Review (QAR) for the period of July 1, 2019 through June 30, 2020.

AUDIT AND FINANCE COMMITTEE received and filed this report.

12.P Fiscal Year 2020 Annual Audit Activities Review

Staff provides an annual reporting to the Board as required by the Internal Audit Charter.

AUDIT AND FINANCE COMMITTEE received and filed this report.

12.Q Capital Grant Update - Period from April 1, 2020 to June 30, 2020

Staff provided an update to capital grant acquisition, reprogramming and closeout activity for the period of April 1, 2020 to June 30, 2020.

AUDIT AND FINANCE COMMITTEE received and filed this report.

13. ADJOURNMENT

Board of Directors Meeting Meeting Date: September 25, 2020

9 ITEM 8.A

ITEM ID: 2020-95-0

TRANSMITTAL DATE: September 7, 2020

MEETING DATE: September 25, 2020

TO: Board of Directors

FROM: Stephanie Wiggins, Chief Executive Officer

SUBJECT: Adoption of the Authority's Proposed FY2020-21 Operating and Capital Program Budgets

Issue

Recommendation

AUDIT AND FINANCE COMMITTEE conducted a public hearing on the Authority’s Proposed FY21 Budget; and

AUDIT AND FINANCE COMMITTEE UNANIMOUSLY RECOMMENDED the Board:

10 Strategic Goal Alignment

This request for adoption of the FY21 Proposed Budget aligns with the strategic goal to maintain fiscal sustainability.

Background

Public Hearing Requirement Members of the public were notified of this public hearing in accordance with applicable requirements, by advertisements in newspapers and publications in English and foreign languages, throughout the five-county areas served by the Authority. In the following newspapers:

Newspaper Language Orange County Reporter (OC) English Ventura County Star (VT) English Daily News (LA) English Riverside Press Enterprise (RIV) English San Bernardino County Sun (SB) English LA Sentinel (African American) English Armenian Media Network (Armenian) Armenian Beirut Times (Arabic/Lebanese) Arabic/Lebanese Panorama (Russian) Russian La Opinion (Spanish) Spanish Rafu Shimpo (Japanese) Japanese World Journal/Chinese Daily News (Chinese) Chinese Korea Daily (Korean) Korean Asian Journal (Tagalog) Tagalog Nguoi Viet Daily News (Vietnamese) Vietnamese Iranshahr Weekly (Persian) Persian

The Authority’s Proposed FY21 Budget is posted on the metrolinktrains.com website. Based upon the action taken by the board today, a Budget Book document formally explaining all aspects of the budget will be available within the next 60 days.

Pre-Covid Budget Formal development of the FY21 Budget began in December 2019, with budget development updates presented to the Audit and Finance Committee in January 2020 and the Board in March 2020. The COVID-19 pandemic began in March 2020; the CEO immediately took cost constraint actions to limit spending for the remainder of FY20, including initiating a 30% service reduction, a hiring and business travel freeze, and a review of spending by every department to determine possible areas for cost savings and deferrals of spending. These actions resulted in the identification of $8.0 million (M) in cost savings throughout the organization. By the end of April, ridership had dropped by 90% of levels from the previous

11 year.

At the April 24, 2020 Board Meeting, the CEO received approval to delay transmittal of the Proposed FY21 Budget to the Member Agencies until August 1 and deferred budget consideration and adoption to no later than September 30, 2020.

With the support of the Member Agencies, the Board, at its June 26 Meeting, approved a Three-Month Continuing Appropriations Resolution to provide funding during FY21 Q1, in an amount equivalent to FY20 Q1.

Staff then began the development of a budget which would reflect Post-COVID-19 realities.

Discussion

The designation of the COVID-19 as a pandemic by the World Health Organization and subsequent national, state, and local emergency declarations in March has led to the precipitous decline in ridership in response to the health guidance to limit travel to essential workers only. As of the preparation of this report, orders restricting activities are still in effect and uncertainty remains as to the length of the orders in the region.

FY21 Budget - Overall Summary

The FY21 Proposed Budget for the Authority requests new budgetary authority, including both Operating and Capital Budgets of $314.8M. The Proposed Budget consists of an Operating Budget authority of $260.5M, a decrease of $2.4M or 0.9% as compared to the FY20 Adopted Budget. Capital Program authority totals $54.3M, comprised entirely of Rehabilitation Projects.

Development of the Proposed FY21 Budget amidst COVID-19

This section describes how Metrolink staff arrived at the final Proposed FY21 Budget in the COVID-19 environment.

In tandem with spending constraints, staff developed various scenarios for ridership recovery. Worst-case, Medium-case and Best-case ridership recovery scenarios as shown below:

Scenario 1 - Muted Recovery (Worst Case): Major economic downturn. Ridership recovery prolonged until FY24 Q3 Scenario 2 - Recession (Medium Case): Medical crisis triggers recession. Ridership recovery by FY23 Q3 Scenario 3 - No Recession (Best Case): Ridership recovery by FY22 Q3

These scenarios were then combined with various payroll and service level scenarios. Also, staff considered various subsidy levels from Member Agencies.

The Medium-case scenario was determined to be the best path forward. It is the basis for Proposed FY21 Operating Budget. This scenario models a return to 50% of FY20 ridership by FY21 Q4, which only provides overall full year ridership of 34%.

12 The Medium case scenario provides restoration to full service beginning in the third quarter of FY21 . This is a result of the projection of ridership to be at 30% and will require additional service to maintain the recommended social distancing guidelines.

FY21 expenses were reviewed to consider the current COVID-19 environment. Specifically, staff reduced expenditures to align with the reduced ridership forecast, including the elimination of a merit and cost of living allowance. Operational expenses did increase specifically to address COVID-19 related expenses. Further, in consultation with Member Agencies, it was decided that all new service, except for Saturday service on the Ventura line and the San Bernardino Express Train, would be deferred. The Saturday service on the Ventura line would not start until April ‘21. Adjustments to reflect these decisions were made to the FY21 Budget.

The FY21 Proposed Operating Budget as shown in Attachment A reflects Revenue of $43.5M, Expense of $260.5M, a Member Agency Subsidy of $146.4M, and usage of CARES Act/Local funding of $70.6M.

The reduction in FY21 Operating Revenue as compared to the FY20 Adopted Budget is $61.9M. This reduction is entirely the result of the impacts of COVID-19.

Total Proposed FY21 Operating Expenses are $260.5M or $2.4M lower than the FY20 Adopted Budget, or a decrease of 0.9%.

The FY21 Proposed Operating Budget by Category as compared to the FY20 Adopted Budget is shown in Attachment A.

The Actual Operating Statement for FY17 – FY19, the Adopted Budget for FY20, and the FY21 Proposed Operating Budget are shown in Attachment B.

The Proposed FY21 Operating Budget by Member Agency is shown in Attachment C.

CAPITAL PROGRAM BUDGET

Metrolink’s Capital Program is made up of two parts: Rehabilitation and New Capital projects. Rehabilitation projects address and maintain Metrolink assets in a state of good repair and include projects from all asset categories, including track, structures, train control systems, facilities, rolling stock, and non-revenue vehicles. New Capital projects consist of new initiatives to enhance or expand Metrolink’s service.

The preliminary proposal for the FY21 Capital Program budget was introduced to the Board at the March 27 Board meeting. In response to financial constraints caused by COVID-19, all New Capital projects were removed from the FY21 Capital Program budget. Maintaining our equipment and infrastructure in a state of good repair is critical to safety. The Rehabilitation Program has been reduced to include only the most urgent needs. With safety and security as the foundation of Metrolink, staff is recommending that the FY21 Rehabilitation Program be adopted.

This report includes a brief discussion on the Southern California Optimized Rail Expansion (SCORE) Program but does not include figures in the budgetary forecasts for FY21 since the program is funded through third party grants.

Metrolink Rehabilitation Plan (MRP)

In 2018, staff created the Metrolink Rehabilitation Plan (MRP) as an outcome of the federally- mandated Transit Asset Management (TAM) Plan and in response to requests by Member Agencies and the Metrolink Board for a long-range (20 to 25-year) forecast of the Authority’s State of Good Repair (SOGR) needs so that Member Agencies, and the Authority could develop long-range financial programming to address critical SOGR needs. The MRP is a detailed condition, performance, and age-based assessment of all Metrolink assets. The initial MRP, presented to the Board in July 2018, detailed a backlog of SOGR needs totaling $443.5M and an annual on-going need of $84.8M.

Staff used the MRP, Strategic Business Plan, and other Board-approved planning documents as a basis for this FY21 Budget. On this basis, staff has provided projections of future investments needed for SOGR on a programmatic basis, by asset class and by Member Agency. Staff has also provided estimated cash flow information at a macro level (for Rehabilitation and New Capital programs) to assist with multi-year planning and fiscal forecasting as requested by Member Agencies.

Staff has provided scopes and definitions for all programmatic projects that are recommended for funding in the annual Capital Program budget (Attachment E). This information includes project estimates that serve as the basis of an estimated cash flow.

In developing the FY2020-21 budget, staff followed the MRP recommended 6-year backlog drawdown strategy, as presented in the FY2019-20 budget development process and programmed into the FY2020-21 forecast. The FY2020-21 initial budget was shared with the MAAC during its January 28, 2020 meeting and in subsequent individual Member Agency meetings. Discussions included how to fund the MRP identified backlog, and the budgetary constraints facing the Member Agencies and Metrolink. Staff reviewed comments and questions from the MAAC, then revised the FY2020-21 budget to further prioritize and optimize the request, while deferring the drawdown of the MRP identified backlog to future years. To address the funding levels required to drawdown the SOGR backlog, the Authority will complete an in-depth analysis of potential funding alternatives as part of the Authority’s Strategic Business Plan.

The proposed Rehabilitation budget was further revised after the presentation to the Board on March 27, 2020. RCTC and VCTC requested an adjustment to increase their line specific Rehabilitation budgets for the Perris Valley and Ventura Lines, respectively. In response to budget constraints as a result of the COVID-19 pandemic, Metro requested that all of the Antelope Valley Line rehabilitation projects be deferred to future years. Also as a result of COVID-19, staff deferred all New Capital projects to future years. As shown on Attachment E, revisions to the original MRP-based Rehabilitation requests and the deferral of all New Capital projects, has resulted in the reduction of the Capital Program budget amount from the originally requested $182.4 million to $54.3 million. The amounts by categories are shown below:

Capital Program FY20/21 In (000's)

Tracks $17,398 Structures $6,301 Systems $11,225 Vehicles $5,290 Rolling Stock $10,691 Facilities $3,430 Total Capital Investment $54,335

$2,716 Annual Cash Flow

Carryover from Prior Years

Capital Program projects are frequently multi-year endeavors. Unexpended project balances are referred to as “Carryovers” because their uncompleted balance moves forward to the following year. Projects authorized in prior years but “carried over” total $183.7M for Rehabilitation projects and $159.2M for New Capital projects (Attachment F).

SCORE Program In FY2020-21, the Agency will continue work on the SCORE Program as funded primarily by the State of California. Major projects that will be undertaken in the upcoming year include:

Construction of the Orange County Interim Setout Track in Irvine; Construction of the Los Angeles Union Station Rail Yard Rehabilitation & Modernization Project, which is a pre-cursor to the Link US Project; Commencement of the Final Design for SCORE Phase 1 Corridor Projects; and Construction of the Signal Respacing on the Olive Sub (CP Atwood to Orange), Signal Respacing in South Orange County (CP Avery to Songs), Signal Modifications from Burbank to LA, and Burbank Junction Speed Improvements.

Redlands Passenger Rail/Arrow Service

All capital costs related to Arrow service (including two new positions which are specified in the Arrow Service Memorandum of Understanding approved by the Board on May 15, 2020) are included here and fully reimbursed by SBCTA. This increases the total Authority FTE headcount from 283 to 285.

Arrow revenue service will not begin until FY22, and until that time all expenses are assigned to capital as developmental.

Attachments related to the FY21 Budget

Attachment A - Annual Operating Budget FY20 vs FY21

15 Attachment B - Annual Operating Actual / Budget FY17-FY21 Attachment C - Annual Operating Budget FY21 by Member Agency Attachment D - FY21 New Service Attachment E - Capital Program Projects for FY21 Attachment F - Rehabilitation and New Capital Carryover Projects

FY21 Salary Resolution

Human Resources Policy HR-2.1, requires that the Board adopt a salary resolution on an annual basis. The FY21 Resolution is included in Attachment SR with related sections.

Attachment SR FY20 Salary Resolution Attachment C-1 Proposed Salary Grade and Range Structure Attachment C-2 Classification and Salary Plan (required by CalPERS under the Government Code to be transmitted and approved by the Board)

Budget Impact

Approval of this item will result in the adoption of this budget and provide the fiscal authority for the FY2020-21 Operating and Capital Program Budgets.

Prepared by: Christine J. Wilson, Senior Manager Finance

Approved by: Arnold Hackett, Interim Chief Financial Officer

Attachment(s)

Attachments A-F for Transmittal of Authority's FY21 Budget Attachments SR, C1 & C2 Budget Process Video Link

16 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY Attachment A Annual Operating Budget Distribution by Cost Component

As of 06/26/20

FY2020-21 Proposed Budget Vs FY2019-20 FY2020-21 FY2019-20 Adopted Budget $ ($000s) Adopted Proposed Budget Variance % Variance Operating Revenue Farebox Revenue 87,739 26,219 (61,520) -70.1% Special Trains 219 219 - 0.0% Fare Reduction Subsidy 2,025 700 (1,325) -65.4% Subtotal-Pro Forma FareBox 89,983 27,138 (62,845) -69.8% Dispatching 2,172 2,327 155 7.1% Other Revenues 257 1,075 818 318.3% MOW Revenues 13,011 12,960 (50) -0.4% Total Operating Revenue 105,423 43,500 (61,923) -58.7% Operating Expenses Operations & Services Train Operations 48,733 49,978 1,245 2.6% Equipment Maintenance 36,638 39,202 2,564 7.0% Fuel 21,730 20,539 (1,192) -5.5% Non-Scheduled Rolling Stock Repairs 160 140 (20) -12.5% Operating Facilities Maintenance 1,749 1,745 (4) -0.2% Other Operating Train Services 977 984 6 0.6% Special Trains 793 779 (14) -1.8% Rolling Stock Lease 230 230 - 0.0% Security - Sheriff 6,095 7,078 983 16.1% Security - Guards 2,552 3,009 457 17.9% Supplemental Additional Security 660 676 16 2.4% Public Safety Program 421 105 (316) -75.0% Passenger Relations 1,797 1,812 15 0.8% TVM Maintenance/Revenue Collection 9,652 6,827 (2,825) -29.3% Marketing 1,769 2,408 639 36.1% Media & External Communications 459 481 22 4.9% Utilities/Leases 2,695 3,066 372 13.8% Transfers to Other Operators 5,301 2,983 (2,319) -43.7% Amtrak Transfers 2,400 1,854 (546) -22.8% Station Maintenance 2,230 2,298 68 3.0% Rail Agreements 6,362 5,804 (558) -8.8% Subtotal Operations & Services 153,404 151,998 (1,406) -0.9% Maintenance-of-Way MoW - Line Segments 46,254 46,611 357 0.8% MoW - Extraordinary Maintenance 712 1,050 338 47.5% Subtotal Maintenance-of-Way 46,966 47,662 696 1.5% Administration & Services Ops Salaries & Fringe Benefits 14,631 14,627 (4) 0.0% Ops Non-Labor Expenses 8,792 7,518 (1,273) -14.5% Indirect Administrative Expenses 20,755 20,978 223 1.1% Ops Professional Services 3,962 2,559 (1,404) -35.4% Subtotal Admin & Services 48,140 45,681 (2,458) -5.1% Contingency (Non-Train Ops) 200 200 - 0.0% Total Operating Expenses 248,710 245,541 (3,169) -1.3% Insurance and Legal Liability/Property/Auto 11,906 12,865 959 8.1% Net Claims / SI 1,000 1,000 - 0.0% Claims Administration 1,252 1,102 (150) -12.0% Net Insurance and Legal 14,158 14,967 809 5.7% TOTAL EXPENSES 262,869 260,508 (2,361) -0.9%

Net Loss (157,445) (217,008) (59,562) 37.8% Required Funding 157,445 217,008 59,562 37.8% Funding Provided: Member Agency Subsidies 157,445 146,381 (11,065) -7.0% CARES ACT FUNDING 70,627 Numbers may not foot due to rounding. 17 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY Attachment B Annual Operating Budget Distribution by Cost Component-Historical Data

As of 06/26/20 FY2020-21 Proposed Budget FY2016-17 FY2017-18 FY2018-19 FY2019-20 FY2020-21 Vs FY2019-20 Adopted Budget Proposed $ ($000s) Actual Actual Actual Adopted Budget Variance % Variance Operating Revenue Farebox Revenue 82,883 82,542 79,007 87,739 26,219 (61,520) -70.1% Special Trains - - 219 219 - 0.0% Fare Reduction Subsidy 490 157 3,147 2,025 700 (1,325) -65.4% Subtotal-Pro Forma FareBox 83,373 82,699 82,154 89,983 27,138 (62,845) -69.8% Dispatching 2,016 2,133 2,136 2,172 2,327 155 7.1% Other Revenues 762 463 790 257 1,075 818 318.3% MOW Revenues 12,384 12,789 13,017 13,011 12,960 (50) -0.4% Total Operating Revenue 98,535 98,084 98,097 105,423 43,500 (61,923) -58.7% Operating Expenses Operations & Services Train Operations 41,616 42,116 43,093 48,733 49,978 1,245 2.6% Equipment Maintenance 35,422 34,242 36,642 36,638 39,202 2,564 7.0% Fuel 18,207 17,577 23,582 21,730 20,539 (1,192) -5.5% Non-Scheduled Rolling Stock Repairs 1 56 87 160 140 (20) -12.5% Operating Facilities Maintenance 1,475 1,493 1,683 1,749 1,745 (4) -0.2% Other Operating Train Services 449 722 1,069 977 984 6 0.6% Special Trains 793 779 (14) -1.8% Rolling Stock Lease 230 11 230 230 230 - 0.0% Security - Sheriff 5,511 5,662 6,323 6,095 7,078 983 16.1% Security - Guards 1,283 1,931 2,353 2,552 3,009 457 17.9% Supplemental Additional Security 520 227 39 660 676 16 2.4% Public Safety Program 203 193 209 421 105 (316) -75.0% Passenger Relations 1,868 1,723 1,769 1,797 1,812 15 0.8% TVM Maintenance/Revenue Collection 7,934 8,188 7,871 9,652 6,827 (2,825) -29.3% Marketing 716 1,307 4,304 1,769 2,408 639 36.1% Media & External Communications 249 320 348 459 481 22 4.9% Utilities/Leases 2,614 2,804 2,775 2,695 3,066 372 13.8% Transfers to Other Operators 6,003 3,818 5,608 5,301 2,983 (2,319) -43.7% Amtrak Transfers 1,307 1,678 1,497 2,400 1,854 (546) -22.8% Station Maintenance 1,196 1,575 1,847 2,230 2,298 68 3.0% Rail Agreements 5,155 4,938 5,696 6,362 5,804 (558) -8.8% Subtotal Operations & Services 131,960 130,582 147,026 153,404 151,998 (1,406) -0.9% Maintenance-of-Way MoW - Line Segments 37,355 42,411 43,112 46,254 46,611 357 0.8% MoW - Extraordinary Maintenance 1,260 594 801 712 1,050 338 47.5% Subtotal Maintenance-of-Way 38,615 43,005 43,913 46,966 47,662 696 1.5% Administration & Services Ops Salaries & Fringe Benefits 13,808 12,507 13,484 14,631 14,627 (4) 0.0% Ops Non-Labor Expenses 5,046 5,890 6,725 8,792 7,518 (1,273) -14.5% Indirect Administrative Expenses 14,090 19,333 16,151 20,755 20,978 223 1.1% Ops Professional Services 1,963 2,687 2,423 3,962 2,559 (1,404) -35.4% Subtotal Admin & Services 34,907 40,417 38,784 48,140 45,681 (2,458) -5.1% Contingency (Non-Train Ops) 2 15 - 200 200 - 0.0% Total Operating Expenses 205,484 214,019 229,723 248,710 245,541 (3,169) -1.3% Insurance and Legal Liability/Property/Auto 11,061 9,748 9,429 11,906 12,865 959 8.1% Net Claims / SI 5,115 8,551 1,212 1,000 1,000 - 0.0% Claims Administration 704 585 682 1,252 1,102 (150) -12.0% Net Insurance and Legal 16,880 18,883 11,324 14,158 14,967 809 5.7% TOTAL EXPENSES 228,032 232,902 241,046 262,869 260,508 (2,361) -0.9%

Net Loss (129,498) (134,818) (142,949) (157,445) (217,008) (59,562) 37.8% Member Agency Subsidies/Requirement 141,989 142,399 150,550 157,445 217,008 59,562 37.8% Surplus / (Deficit) 12,491 7,581 7,600 - - FY21 Requested Subsidies from Member Agencies 146,381 (11,065) -7.0% CARES ACT FUNDING 70,627 Numbers may not foot due to rounding 18 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY Attachment C FY2020-21 Proposed Budget - By Member Agency Revenue Scenario 2 - Medium Case / 30% Service Reduction for 6 months / No Merit No Cola

As of 6/26/20 FY2020-21 Proposed Budget ($000's) METRO OCTA RCTC SBCTA VCTC TOTAL Operating Revenue Farebox Revenue $ 12,471 $ 7,116 $ 2,609 $ 3,082 $ 941 $ 26,219 Special Trains 91 55 41 18 14 $ 219 Fare Reduction Subsidy 419 - - 281 - $ 700 Subtotal-Pro Forma FareBox 12,981 7,171 2,650 3,382 955 $ 27,138 Dispatching 1,186 784 11 63 284 $ 2,327 Other Revenues 529 275 101 131 39 $ 1,075 MOW Revenues 7,490 2,631 692 1,630 518 $ 12,960 Total Operating Revenue 22,185 10,861 3,453 5,205 1,797 $ 43,500 Operating Expenses Operations & Services Train Operations 26,965 10,903 4,305 5,859 1,945 $ 49,978 Equipment Maintenance 19,452 8,942 4,430 4,678 1,700 $ 39,202 Fuel 10,710 4,834 1,709 2,522 763 $ 20,539 Non-Scheduled Rolling Stock Repairs 73 33 14 16 4 $ 140 Operating Facilities Maintenance 906 411 170 203 55 $ 1,745 Other Operating Train Services 488 136 118 163 79 $ 984 Special Trains 219 333 115 30 82 $ 779 Rolling Stock Lease 109 46 26 33 17 $ 230 Security - Sheriff 4,000 1,541 556 819 163 $ 7,078 Security - Guards 1,429 516 445 321 298 $ 3,009 Supplemental Additional Security 321 178 69 84 24 $ 676 Public Safety Program 50 18 16 11 10 $ 105 Passenger Relations 873 496 164 220 59 $ 1,812 TVM Maintenance/Revenue Collection 2,840 1,584 1,202 765 437 $ 6,827 Marketing 1,184 623 224 292 85 $ 2,408 Media & External Communications 228 83 72 50 48 $ 481 Utilities/Leases 1,455 528 456 322 305 $ 3,066 Transfers to Other Operators 1,589 774 221 306 93 $ 2,983 Amtrak Transfers 572 1,203 1 2 76 $ 1,854 Station Maintenance 1,332 386 179 305 96 $ 2, 298 Rail Agreements 2,222 1,528 1,460 353 241 $ 5,804 Subtotal Operations & Services 77,019 35,094 15,952 17,352 6,581 $ 151,998 Maintenance-of-Way MoW - Line Segments 24,766 9,628 3,173 6,202 2,842 $ 46,611 MoW - Extraordinary Maintenance 615 150 100 112 73 $ 1,050 Subtotal Maintenance-of-Way 25,381 9,779 3,273 6,314 2,914 $ 47,662 Administration & Services Ops Salaries & Fringe Benefits 6,939 2,532 2,169 1,537 1,449 $ 14,627 Ops Non-Labor Expenses 3,737 1,774 848 837 322 $ 7,518 Indirect Administrative Expenses 9,952 3,614 3,121 2,203 2,087 $ 20,978 Ops Professional Services 1,214 441 381 269 255 $ 2,559 Subtotal Admin & Services 21,842 8,362 6,519 4,846 4,113 $ 45,681 Contingency 95 34 30 21 20 $ 200 Total Operating Expenses 124,337 53,269 25,774 28,533 13,628 $ 245,541 Insurance and Legal Liability/Property/Auto 6,679 3,029 1,254 1,495 407 $ 12,865 Net Claims / SI 519 235 97 116 32 $ 1,000 Claims Administration 572 260 107 128 35 $ 1,102 Total Net Insurance and Legal 7,770 3,525 1,459 1,740 474 $ 14,967 Total Expenses 132,107 56,793 27,233 30,272 14,102 $ 260,508

Net Loss (109,922) (45,933) (23,780) (25,067) (12,305) (217,008) Required Funding 109,922 45,933 23,780 25,067 12,305 217,008 Funding Provided: Member Agency Subsidies 74,089 28,773 17,027 16,298 10,193 146,381 CARES ACT FUNDING 35,834 17,159 6,752 8,769 2,113 70,627 Numbers may not foot due to rounding.

19 Attachment D FY21 NEW SERVICE VCTC TOTAL METRO OCTA RCTC SBCTA REVENUE Ventura Line - Saturday service 8,725 - - - 10,610 19,335 SB Line - convert local to express ------Total Revenue 8,725 - - - 10,610 19,335

EXPENDITURES Ventura Line - Saturday service 45,891 - - - 55,807 101,698 SB Line - convert local to express ------Total Expenditures 45,891 - - - 55,807 101,698

OPERATING SUBSIDY Ventura Line - Saturday service 37,166 - - - 45,197 82,363 SB Line - convert local to express ------Total Operating Subsidy 37,166 - - - 45,197 82,363

20 Attachment E REHABILITATION PROJECT PROPOSALS FOR FY2021 BUDGET 6/25/2020 PROJECT MILE ASSET TOTAL MRP (DECREASED)/ TOTAL FINAL SUBDIVISION CONDITION IMPACT PROJECT SCOPE METRO OCTA RCTC SBCTA VCTC OTHER # POSTS TYPE REQUEST INCREASED PROPOSED ROW# 1 2141 All NA Worn High Track SYSTEMWIDE TRACK Systemwide Track Rehabilitation addresses the following recurring requirements to sufficiently rehabilitate 5,000,000 - 5,000,000 2,375,000 990,000 555,000 720,000 360,000 - REHABILITATION aging infrastructure and growing backlog: - Rail Grinding - Surfacing Program to restore track profiles and cross sections - Infrastructure study & planning and data collection for condition assessments 2 2150 All NA Worn High Non- MAINTENANCE-OF-WAY MOW vehicles and equipment major overhaul and replacement via new acquisition or lease-to-purchase 5,290,000 - 5,290,000 2,512,750 1,047,420 587,190 761,760 380,880 - Revenue (MOW) VEHICLES & addresses the fleet of specialized & ops. vehicles, equipment and tools that support the timely repair and Fleet EQUIPMENT - rehabilitation of the overall rail corridor right-of-way. REPLACEMENT & Replacement of MOW equipment and vehicles; Rehabilitation of MOW equipment. OVERHAUL QTY 15 - Light duty vehicles to support operations, signal, track and PTC. QTY 15 - Medium to heavy duty MOW track and signal support vehicles QTY 8 - MOW track repair equipment 3 2151 All NA Worn High Facilities FACILITIES Facilities rehabilitation addresses components and subcomponents that support the maintenance of rolling 10,290,000 (6,860,000) 3,430,000 1,629,250 679,140 380,730 493,920 246,960 - REHABILITATION stock and offices for staff duties. Work includes: MOC Generator and UPS systems rehabilitation Melbourne office space rehab and reconfiguration to meet staffing needs CMF systems rehabilitation to meet regulatory requirements, such as train wash water reclamation system; CMF sand Silo filtration system Phase II of CMF switchgear upgrade (Phase I was approved in the FY20 rehab budget) Systemwide facilities site work: paint, striping, asphalt, fence, signage 4 2152 All NA Worn High Rolling ROLLING STOCK Rolling Stock rehabilitation addresses the revenue fleet of railcars and cab cars. 39,593,000 (28,902,000) 10,691,000 5,078,225 2,116,818 1,186,701 1,539,504 769,752 - Stock REHABILITATION (Bombardier Railcar Midlife Overhaul program funding request has been deferred to FY22 budget development process) Specific work for the FY21 proposed budget includes: Rehabilitation of Locomotive and Cab Car safety & security systems Preliminary Engineering for Locomotive Rehabilitation Rehabilitation of Rotem railcar component systems, (HVAC, mechanical piping) Rolling Stock Rehabilitation including rehabilitation and repair analysis; Replacement of seat covers and cushions 5 2165 All NA Worn High Train SYSTEMWIDE TRAIN Systemwide Train Control Systems Rehabilitation addresses PTC, Centralized Train Control systems and 4,820,000 - 4,820,000 2,289,500 954,360 535,020 694,080 347,040 - Control CONTROL SYSTEMS equipment to sufficiently rehabilitate aging infrastructure and growing backlog. See the justification section REHABILITATION for discussion on aged assets and standard life. Train Control Back Office: DOC/MOC Backup Systems Workstations/Laptops CAD/BOS/MDM/IC3 Routers/Switches On-Board Train Control Systems: Software/Hardware for Locomotives & Cab Cars 6 2236 All NA Marginal Low Business PROJECT MANAGEMENT Project Management system to include functionality for perform scheduling, dependencies, expenditures, 1,000,000 - 1,000,000 475,000 198,000 111,000 144,000 72,000 - Systems SYSTEM - PURCHASE & risk, structured workflows and standardized project document control. Project will encompass software IMPLEMENTATION evaluation, procurement, implementation, and training. New system will increase functionality and interoperability. Will replace the current custom in-house system. This project request does not directly effect Operations in terms of Daily Service, thus the "low" System Impact score, but a new project management system will improve program delivery. 7 2257 All NA NA NA Business IT SAN UPGRADE & Upgrade and Rehab SAN Infrastructure at 2 Data Centers. Asset will be beyond useful life in 2021 and 870,000 - 870,000 413,250 172,260 96,570 125,280 62,640 - Systems REHABILITATION requires rehabilitation to reduce risk of technical failure that would effect systemwide business critical systems. ALL SHARE PROJECT PROPOSAL REQUEST 66,863,000 (35,762,000) 31,101,000 14,772,975 6,157,998 3,452,211 4,478,544 2,239,272 - 8 2149 River Sub - 0.0 - Worn High Track RIVER SUBDIVISION River Sub Track Rehabilitation addresses five major subcomponents to sufficiently rehabilitate aging 7,150,000 (4,766,000) 2,384,000 1,132,400 472,032 264,624 343,296 171,648 - West Bank 485.20 TRACK REHABILITATION infrastructure and growing backlog: - Rail - Ties - Crossings - Special Trackwork - Ballast Work will include complete removal and replacement of two turnouts on West Bank; additionally will rehab four West Bank turnouts in-kind, based on wear, age, condition and historical performance. All trackwork will bring the existing track conditions up to current Metrolink Standards.

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21 14 13 12 11 10 9 ROW# PROJECT PROJECT 2179 2154 2140 2145 2188 2163 # San Gabriel San Gabriel San Gabriel Shortway SB West Bank River Sub - East Bank River Sub- SUBDIVISION 0.42 - - 0.42 NA 485.20 - 0.0 56.52 - 1.08 56.52 - 1.08 56.52 - 1.08 2.1 POSTS MILE MILE CONDITION Worn Worn Worn Worn Worn Worn IMPACT High High High High High High Control Train Track Track Structures Control Train Structures ASSET ASSET TYPE REHABILITATION STRUCTURES SUBDIVISION GABRIEL SAN REHABILITATION SYSTEMS CONTROL SUBDIVISION TRAIN GABRIEL SAN REHABILITATION SUBDIVISION TRACK GABRIEL SAN REHABILITATION SUBDIVISION TRACK WAY SHORT REHABILITATION STRUCTURES RIVER SUBDIVISION REHABILITATION SYSTEMS TRAIN CONTROL RIVER SUBDIVISION PROJECT replacement of structures based on the current condition of the structure. and rehabilitation and structures, of limits the near r/w grading regulations, FRA with accordance in updates rating load permitting, environmental design, will include projects these for work of Scope - Culverts - Bridges aging infrastructure growing and backlog: rehabilitate sufficiently to subcomponents major three addresses Rehabilitation Structures Sub Gabriel San systems control train - Centralized systems - Communication - Crossing systems systems - Signal systems (PTC) Control Train - Positive backlog: growing and infrastructure aging rehabilitate sufficiently to subcomponents major five addresses Rehabilitation Systems Control Train Sub Gabriel San Standards. Metrolink current to up conditions track existing the will bring All trackwork crossings). Ped Stn El Monte both Tyler, crossings, Temple both Macdevitt, Ceramics, San Dimas Cyn, San Dimas, Cataract, Sunflower, Covina, Cypress, Glendora, Azusa Cyn, Pacific, Gainey Wheeler, Fairplex, Arrow, PaperPak, Hill, White, Indian Riverside, Mountain, Campus, Baker, on the San Gabriel Sub (Alder, Locust, Lilac, Willow, Acacia, Eucalyptus, Sycamore, Rancho, 2nd, Citrus, rehabilitation need that 36 of crossings total a are there performance; historical and condition age, wear, on based in-kind, crossings, seven of rehabilitation include also would work The greatest. the are failed are that ties of MP percentage MP47-55 32-35 the and between 5,000 where of ties wood replacement for is FY21 this request Subdivision, Gabriel San the on replaced be to 15,544 of need total that a ties are There - Ballast Trackwork - Special - Crossings - Ties - Rail infrastructure growing and backlog: aging rehabilitate sufficiently to subcomponents major five addresses Rehabilitation Track Sub Gabriel San Standards. Metrolink current to up conditions track existing the will bring All trackwork performance. historical and condition age, wear, on based 553 of in-kind, rail, ftof rehabilitation will include Work - Ballast Trackwork - Special - Crossings - Ties - Rail infrastructure growing and backlog: aging rehabilitate sufficiently to subcomponents major five addresses Rehabilitation Track Sub Way Short West Bank based on the current condition of the structure. accordance with FRA regulations, Major maintenance, Grading Drainage and rehabilitation of one bridge on in updates rating load permitting, environmental design, will include projects these for work of Scope - Tunnels - Culverts - Bridges infrastructure growing and backlog: aging rehabilitate sufficiently to subcomponents major three addresses Rehabilitation Structures Sub River ATCS/CIS/Backhaul. rehabilitation Communications Points; Control two at rehabilitation systems Signal include: to work Specific systems - Communication - Crossing systems systems - Signal aging infrastructure growing and backlog: rehabilitate sufficiently to subcomponents major addresses Rehabilitation Systems Control Train Sub River SCOPE SAN GABRIEL PROJECT PROPOSAL REQUEST PROPOSAL PROJECT SAN GABRIEL SHORWAY PROJECT PROPOSAL REQUEST PROPOSAL PROJECT SHORWAY RIVER PROJECT PROPOSAL REQUEST PROPOSAL PROJECT RIVER Page 2 6 of Page 3,710,000 8,870,000 9,930,000 270,000 11,890,000 1,090,000 3,650,000 22,510,000 22,510,000 270,000 TOTAL MRP REQUEST (2,473,000) - (7,925,000) (17,963,000) (8,870,000) (6,620,000) - (726,000) (2,433,000) (DECREASED)/ INCREASED 1,237,000 270,000 3,965,000 8,870,000 3,310,000 364,000 1,217,000 4,547,000 4,547,000 270,000 TOTAL FINAL TOTAL PROPOSED 742,200 138,200 1,485,081 5,322,000 172,900 2,728,200 2,728,200 1,986,000 138,200

METRO 179,781 - 57,607 619,044 - 72,072 - - 57,607

OCTA 74,940 - 32,297 347,040 - 40,404 - - 32,297

RCTC 42,012 494,800 3,548,000 41,896 450,214 52,416 1,818,800 1,818,800 1,324,000 41,896 41,896

SBCTA 54,502 - 225,107 - 26,208 - - - -

VCTC 27,251 - 838,513 - - 838,513 - - - - OTHER 22 22 21 20 19 18 17 16 15 ROW# PROJECT PROJECT 2144 2181 2156 2142 2216 2166 2153 2139 # Olive County -LA Ventura County -LA Ventura County -LA Ventura Valley Valley Valley Valley SUBDIVISION 76.63 - 3.67 76.63 - 3.67 5.42 - 0.07 462.39 - 441.24 462.39 - 441.24 462.39 - 441.24 76.5 - 76.4 76.63 - 3.67 POSTS MILE MILE CONDITION Worn Worn Worn Worn Worn Worn Worn Worn IMPACT High High High High High High High High Structures Control Train Track Facilities Structures Control Train Track Track ASSET ASSET TYPE TRACK REHABILITATION TRACK OLIVE SUBDIVISION REHABILITATION STRUCTURES SUBDIVISION (LA) VENTURA REHABILITATION SYSTEMS CONTROL SUBDIVISION TRAIN (LA) VENTURA REHABILITATION SUBDIVISION TRACK (LA) VENTURA REPLACEMENT BASE CREW LANCASTER REHABILITATION STRUCTURES VALLEY SUBDIVISION REHABILITATION SYSTEMS TRAIN CONTROL VALLEY SUBDIVISION REHABILITATION TRACK VALLEY SUBDIVISION PROJECT performance. All trackwork will bring the existing track conditions up to current Metrolink Standards. Metrolink current to up conditions track existing the will bring All trackwork performance. Work will include replacing track components in-kind based on wear, age, condition historical and - Ballast Trackwork - Special - Crossings - Ties - Rail infrastructure growing and backlog: aging rehabilitate sufficiently to subcomponents major five addresses Rehabilitation Track Sub Olive replacement of structures based on the current condition of the structure. and rehabilitation and structures, of limits the near r/w grading regulations, FRA with accordance in updates rating load permitting, environmental design, will include projects these for work of Scope - Tunnels - Culverts - Bridges backlog: growing and infrastructure aging rehabilitate Ventura (LA) Sub Structures Rehabilitation addresses three major subcomponents to sufficiently systems control train - Centralized systems - Communication - Crossing systems systems - Signal systems (PTC) Control Train - Positive backlog: growing and infrastructure aging rehabilitate sufficiently to subcomponents major five addresses Rehabilitation Systems Control Train Sub (LA) Ventura Metrolink Standards. current to up conditions track existing the 26, will bring 27 28 & All trackwork Tunnels . in trackwork and replacement, rail of 5,800 to feet up lineal will include work this that anticipated is It performance. Work will include replacing track components in-kind based on wear, age, condition historical and - Ballast Trackwork - Special - Crossings - Ties - Rail backlog: growing and infrastructure aging rehabilitate sufficiently to subcomponents major five addresses Rehabilitation Track Sub County) (LA Ventura train operations mechanical and crews. for shelter communication resistant weather portable and building modular new install and parcel Lease replacement of structures based on the current condition of the structure. and rehabilitation and structures, of limits the near r/w grading regulations, FRA with accordance in updates rating load permitting, environmental design, will include projects these for work of Scope - Tunnels - Culverts - Bridges infrastructure growing and backlog: aging rehabilitate sufficiently to subcomponents major three addresses Rehabilitation Structures Sub Valley systems control train - Centralized systems - Communication - Crossing systems systems - Signal systems (PTC) Control Train - Positive backlog: growing and infrastructure aging rehabilitate sufficiently to subcomponents major five addresses Rehabilitation Systems Control Train Sub Valley up to current Metrolink Standards. conditions track existing the will bring All trackwork 4 crossings. and 1 turnouts 15,000 replaced, ties wood to up replacement, rail 40,000 of to feet up lineal will include work this that anticipated is It performance. Work will include replacing track components in-kind based on wear, age, condition historical and - Ballast Trackwork - Special - Crossings - Ties - Rail infrastructure growing and backlog: aging rehabilitate sufficiently to subcomponents major five addresses Rehabilitation Track Sub Valley SCOPE METRO PROJECT PROPOSAL REQUEST PROPOSAL PROJECT METRO Page 3 6 of Page 36,730,000 36,730,000 700,000 2,020,000 2,020,000 4,310,000 1,800,000 9,540,000 4,650,000 12,390,000 TOTAL MRP REQUEST (36,730,000) (2,020,000) (9,540,000) (700,000) (2,020,000) (4,310,000) (1,800,000) (4,650,000) (12,390,000) (DECREASED)/ INCREASED - 2,020,000 9,540,000 - 2,020,000 4,310,000 1,800,000 4,650,000 12,390,000 TOTAL FINAL TOTAL PROPOSED - 2,020,000 9,540,000 2,020,000 4,650,000 - 4,310,000 1,800,000 12,390,000 METRO ------700,000 - OCTA ------RCTC ------SBCTA ------VCTC ------OTHER 23 30 29 28 27 26 25 24 23 ROW# PROJECT PROJECT 2296 2160 2146 2182 2157 2143 2183 2158 # (PVL) Jacinto San (PVL) Jacinto San (PVL) Jacinto San Orange Orange Orange Olive Olive SUBDIVISION 212.30 - 165.08 5.42 - 0.07 5.42 - 0.07 85.4 65 - 85.4 65 - 85.4 65 - 212.30 165.08- 212.30 165.08- POSTS MILE MILE CONDITION Worn Worn Worn Worn Worn Worn Worn Worn IMPACT High High High High High High High High Train Train Track Structures Control Train Track Structures Control Train Structures Control ASSET ASSET TYPE SERVICES PHASE CONSTRUCTION - REHABILITATION SUBDIVISION VALLEY PERRIS REHABILITATION SYSTEMS CONTROL SUBDIVISION TRAIN VALLEY PERRIS SERVICES PHASE DESIGN - REHABILITATION SUBDIVISION VALLEY PERRIS REHABILITATION STRUCTURES ORANGE SUBDIVISION REHABILITATION SYSTEMS TRAIN CONTROL ORANGE SUBDIVISION REHABILITATION TRACK ORANGE SUBDIVISION REHABILITATION STRUCTURES OLIVE SUBDIVISION REHABILITATION SYSTEMS TRAIN CONTROL OLIVE SUBDIVISION PROJECT subsequent Fiscal Years. ditching between 70.83 70.9. and Remaining drainage culvert and projects for this area will be requested in and grading side track perform and tracks the 4-60” across RCP will MP70.85 add at which will be area this Construction phase services for the area between MP 70.7 70.9. and The first project to be completed in the wall to prevent the current erosion/undercutting issue. near area the in drainage and grading as well as wall, Retaining Citrus the for services phase Construction systems control train - Centralized systems - Communication - Crossing systems systems - Signal systems (PTC) Control Train - Positive backlog: growing and infrastructure aging rehabilitate sufficiently to subcomponents major five addresses Rehabilitation Systems Control Train Sub Valley Perris Drainage construction work will be phased into future annual budget requests. Drainage Springs Box of 100% Design/Environmental/Permitting Drainage & Wall Retaining Citrus of 100% Design/Environmental/Permitting fencing to prevent trespassers students from and UCR using shortcut a the as RR from ROW to and UCR. and walls block with ROW) (RR right-of-way railroad open the Secure UCR: by fencing/wall Right-of-Way culverts based on the current condition of the structure. two of rehabilitation and structures, of limits the near r/w grading regulations, FRA with accordance in updates rating load permitting, environmental design, will include projects these for work of Scope - Tunnels - Culverts - Bridges aging infrastructure growing and backlog: rehabilitate sufficiently to subcomponents major three addresses Rehabilitation Structures Sub Orange ATCS/CIS/Backhaul. rehabilitation Communications locations; two at rehabilitation systems Warning Crossing Grade Point; Control one at rehabilitation systems Signal include: to work Specific systems - Communication - Crossing systems systems - Signal backlog: growing and infrastructure aging rehabilitate sufficiently to subcomponents major addresses Rehabilitation Systems Control Train Sub Orange performance. historical and condition age, wear, on 7,500 of based ties, replacement will include work Specific - Ballast Trackwork - Special - Crossings - Ties - Rail infrastructure growing and backlog: aging rehabilitate sufficiently to subcomponents major five addresses Rehabilitation Track Sub Orange based on the current condition of the structure. culvert one of rehabilitation and structures, of limits the near r/w grading regulations, FRA with accordance in updates rating load permitting, environmental design, will include projects these for work of Scope - Tunnels - Culverts - Bridges infrastructure growing and backlog: aging rehabilitate sufficiently to subcomponents major three addresses Rehabilitation Structures Sub Olive ATCS/CIS/Backhaul. rehabilitation Communications subdivision; Olive the on crossings all at Recorders Data Crossing Grade existing of Replacement include: to work Specific systems - Communication - Crossing systems systems - Signal aging infrastructure growing and backlog: rehabilitate sufficiently to subcomponents major addresses Rehabilitation Systems Control Train Sub Olive SCOPE OCTA PROJECT PROPOSAL REQUEST PROPOSAL PROJECT OCTA RCTC PROJECT PROPOSAL REQUEST PROPOSAL PROJECT RCTC Page 4 6 of Page 2,390,000 2,390,000 - 560,000 1,830,000 17,640,000 4,060,000 3,800,000 7,810,000 320,000 950,000 TOTAL MRP REQUEST (560,000) (5,206,000) 1,740,000 1,740,000 2,300,000 - (11,778,000) (2,706,000) (2,533,000) - (633,000) (DECREASED)/ INCREASED - 2,604,000 4,130,000 4,130,000 2,300,000 1,830,000 5,862,000 1,354,000 1,267,000 320,000 317,000 TOTAL FINAL TOTAL PROPOSED ------METRO - 2,604,000 - 5,862,000 320,000 - 1,354,000 317,000 - 1,267,000 OCTA 560,000 - 1,830,000 - - 4,130,000 4,130,000 - - 2,300,000 - RCTC ------SBCTA ------VCTC ------OTHER 24 36 35 34 33 32 31 ROW# PROJECT PROJECT 2316 2186 2161 2148 2147 2164 # County VC - Ventura County VC - Ventura County VC - Ventura Montalvo County VC - Ventura Rialto SUBDIVISION 441.24 - 426.4 NA 439.3 441.24 - 426.4 441.24 - 426.4 404.47 - 402.81 POSTS MILE MILE CONDITION Worn Worn Worn Worn Worn Worn IMPACT High High High High High High Structures Structures Control Train Track Track Control Train ASSET ASSET TYPE REHABILITATION STRUCTURES SUBDIVISION (VC) VENTURA REHABILITATION STRUCTURES SUBDIVISION (VC) VENTURA REHABILITATION SYSTEMS CONTROL SUBDIVISION TRAIN (VC) VENTURA REHABILITATION SUBDIVISION TRACK MONTALVO REHABILITATION SUBDIVISION TRACK (VC) VENTURA REHABILITATION SYSTEMS TRAIN CONTROL RIALTO SUBDIVISION PROJECT culvert at MP 439.27 which is an existing 36" CMP built in 1900 and is not serving it's intended use. use. intended it's serving not is 1900 36" in CMP and built existing MP an 439.27 is at which culvert one of rehabilitation and permitting, environmental design, will include projects these for work of Scope - Tunnels - Culverts - Bridges aging infrastructure growing and backlog: rehabilitate sufficiently to subcomponents major three addresses Rehabilitation Structures Sub Ventura replacement of structures based on the current condition of the structure. and rehabilitation and structures, of limits the near r/w grading regulations, FRA with accordance in updates rating load permitting, environmental design, will include projects these for work of Scope - Tunnels - Culverts - Bridges backlog: growing and infrastructure aging rehabilitate Ventura (VC) Sub Structures Rehabilitation addresses three major subcomponents to sufficiently ATCS/CIS/Backhaul. rehabilitation Communications Points; Control two at rehabilitation systems Signal include: to work Specific systems - Communication - Crossing systems systems - Signal backlog: growing and infrastructure aging rehabilitate sufficiently to subcomponents major addresses Rehabilitation Systems Control Train Sub (VN) Ventura Standards. Metrolink current to up conditions track existing the will bring All trackwork performance. Work will include replacing track components in-kind based on wear, age, condition historical and - Ballast Trackwork - Special - Crossings - Ties - Rail infrastructure growing and backlog: aging rehabilitate sufficiently to subcomponents major five addresses Rehabilitation Track Sub Montalvo #2142 & #2147 for Tunnel Vacuuming across Ventura sub (LA VN); and both need to be funded. Specific work will include Tunnel 26 Vacuuming Tie and Replacement. Project dependency with projects - Ballast Trackwork - Special - Crossings - Ties - Rail backlog: growing and infrastructure aging rehabilitate sufficiently to subcomponents major five addresses Rehabilitation Track Sub (VC County) Ventura systems control train - Centralized systems - Communication - Crossing systems systems - Signal systems (PTC) Control Train - Positive backlog: growing and infrastructure aging rehabilitate sufficiently to subcomponents major five addresses Rehabilitation Systems Control Train Sub Rialto SCOPE FY2021 PROPOSED REHABILITATION REQUEST SBCTA PROJECT PROPOSAL REQUEST PROPOSAL PROJECT SBCTA VCTC PROJECT PROPOSAL REQUEST PROPOSAL PROJECT VCTC Page 5 6 of Page 8,340,000 8,340,000 - 4,040,000 1,780,000 520,000 2,000,000 1,220,000 1,220,000 167,853,000 167,853,000 TOTAL MRP REQUEST (3,880,000) (520,000) 726,000 (4,040,000) (46,000) - (1,220,000) (1,220,000) (113,518,000) (DECREASED)/ INCREASED 4,460,000 4,460,000 - 726,000 - 1,734,000 2,000,000 - - 54,335,000 54,335,000 TOTAL FINAL TOTAL PROPOSED 19,124,456 19,124,456 ------METRO 12,696,650 12,696,650 ------OCTA 7,961,548 7,961,548 ------RCTC 6,789,454 6,789,454 ------1,220,000 SBCTA 520,000 6,924,379 6,924,379 4,460,000 726,000 4,040,000 2,000,000 - 1,734,000 - VCTC - 838,513 838,513 ------OTHER 25 NEW CAPITAL PROJECT PROPOSALS FOR FY2021 BUDGET 6/25/2020 PROJECT MILE TOTAL INITIAL (DECREASED)/ TOTAL FINAL SUBDIVISION CONDITION IMPACT ASSET TYPE PROJECT SCOPE METRO OCTA RCTC SBCTA VCTC

ROW # POSTS REQUEST INCREASED REQUEST 1 2190 River 2.95 - NA NA Track CMF North End Relocate existing tail track on City of LA property to Metro Property and create an emergency secondary 10,579,000 (10,579,000) 10,579,000 5,025,025 2,094,642 1,174,269 1,523,376 761,688 3.35 Connection and Tail access point to the CMF at CP Ormiston. 100% design submittal is scheduled for June 2020. The design Track phase of this project was funded in the FY19 budget. This project must move forward in order to provide alternate access to the facility when the lease with the City of L.A. expires and the existing tail track is removed from their property. The value engineering approach reduced the estimated construction cost from $19.06M to it's current $10.58M, resulting in an estimated savings of $8.5M from the original estimated construction costs. 2 2193 Riverside 10.30 - NA NA Track Riverside Station Switch Downtown Riverside Station switch material and installation will address timeliness issues pertaining to 458,000 (458,000) 458,000 - - 458,000 - - 10.30 current manual switch throw at the station track. 9 2201 All NA NA NA Non-Revenue Specialized Second phase of specialized maintenance equipment multi- year procurement. Phase 1 funded in FY20 3,500,000 (3,500,000) 3,500,000 1,662,500 693,000 388,500 504,000 252,000 Fleet Maintenance adopted budget. Equipment is used to support specialized track maintenance, rehab, and third party Equipment, Phase 2 construction projects. New Capital purchases of MOW equipment will add to the current SCRRA-owned fleet. This project aligns with Bundled contract effort and ensures continuity of activities in event of loss of access to contractor-owned assets. New equipment identified for this project includes an Electric Car Mover; Gang Truck; Hi-Rail Inspector Truck; Welding Truck. FY2021 PROPOSED NEW CAPITAL REQUEST 14,537,000 (14,537,000) ------

Page 6 of 6 26 Attachment F

FY2020-21 REHABILITATION CARRYOVER PROJECTS

MEMBER AGENCY PROJECT TOTAL # Subdivision CATEGORY PROJECT NAME METRO OCTA RCTC SBCTA VCTC OTHER CARRYOVER 514018 Valley Communications Valley- RR Comm & Equip 9,219 - - - - - 9,219 514032 Ventura - VC County Signal Ventura VC-RR Light Fixtures - - - - 2,062 - 2,062 514037 River Communications River Sub Comm Upgrade & RR - 6,659 3,722 4,838 5,589 - 20,808 514046 Systemwide Information Technology Systemwide-Online,Onbrd Tkt Sales 13,991 15,628 10,266 11,260 5,630 16,522 73,298 515105 Orange Structures Orange Sub Culvert & Bridge - 612,637 - 98,084 - - 710,720 515106 Orange Structures Orange Sub Bridge Repair - - - 13,651 - - 13,651 515123 Valley Structures Valley Sub Bridge and Culvert - - - - - 3,475 3,475 515129 Ventura - LA County Structures Ventura LA Bridge Repair 67,685 - - - - 93,530 161,215 515133 Ventura - VC County Communications Ventura Sub VC Comm Syst 10,295 - - - 863 - 11,158 515135 Ventura - VC County Structures Ventura Sub VC Bridge Des & Con - - - - 42,132 - 42,132 515144 River Sub - East Bank Track River East Bank Zone 2 Tie&Rail 21,958 3,065 1,633 260 2,991 33,703 63,609 515160 River Sub - East Bank Track River East Bank Zone 3 Tie&Rail 7,286 3,056 1,713 2,221 1,109 49,626 65,012 516050 Systemwide Rolling Stock Rail Car Restoration - - - - - 207,349 207,349 516081 Systemwide Facilities Ventura Valley Intr Det Syst - - - - - 17,593 17,593 516111 Ventura - VC County Track Ventura (VC) Rail Replacement - - - - 15,858 - 15,858 516120 Ventura - VC County Structures Ventura (VC) Bridge Rehab/Rep - - - - 197,323 - 197,323 516610 Orange Track Orange Sub Rail Grinding - - 2,082 - - - 2,082 516611 Orange Track Orange Sub Rail Replacement - - 58,801 20,575 - 79,376 516620 Orange Structures Orange Bridge Rehab, ROW - 3,726 - - - - 3,726 516621 Orange Structures Orange Sub San Juan Cr Brdg - 1,338,263 - - - - 1,338,263 516631 Orange Signal Orange Sub Signal Repl - 65,688 - - - - 65,688 516640 Orange Signal Orange Signal & Grade Rehab - 31,924 - - - - 31,924 516820 Riverside Facilities Downtown Riverside Layover Imp - - 35,495 - - - 35,495 516930 Parris Valley Signal PVL Signal Engineering - - 60,417 - - - 60,417 516940 Parris Valley Communications PVL Communication Systems - - 4, 648 - - - 4,648 517030 Systemwide Facilities Systemwide Repl Sig Shelter Locks 17,591 4,343 - - - - 21,934 517040 Systemwide Communications Systemwide Comm & PTC Upg 20,219 8,428 4,725 6,130 3,064 - 42,566 517050 Systemwide Rolling Stock Systemwide Bombardier HVAC OH 128,356 53,504 29,995 38,912 19,456 - 270,222 517052 Systemwide Facilities Systemwide Loco Wash Rack Drainage 501,158 198,768 131,260 126,119 56,341 - 1,013,646 517130 Ventura - VC County Signal Ventura VC Repl Sgnl Batt & Cbls - - - - 299,096 - 299,096 517320 Valley Structures Valley Culvert Rehab 5,134 - - - - - 5,134 517410 San Gabriel Track San Gabriel Tie Panel Repl 9,993 - - 6,602 - - 16,594 517420 San Gabriel Structures San Gabriel Culvert Rehab 24,261 - - 16,174 - - 40,435 517610 Orange Track Orange Repl Rail MP 201-207 - 686, 718 63, 423 126, 906 - - 877,047

27 MEMBER AGENCY PROJECT TOTAL # Subdivision CATEGORY PROJECT NAME METRO OCTA RCTC SBCTA VCTC OTHER CARRYOVER 517620 Orange Structures Orange Sub Repl 36" Pipe 201.4 - 145,269 - - - - 145,269 517712 River Sub - East Bank Track River East Bank Zone 2 Rail&Tie 119,136 49,674 27,852 36,092 18,099 555,697 806,550 517713 River Sub - East Bank Track River East Bank Zone 3 Tie&Rail 12,797 5,332 2,991 3,878 1,941 86,659 113,597 517731 River Sub - East Bank Signal River East Bank Rehab Signal Ctls 16,618 6,926 3,884 5,037 2,521 77,147 112,132 518050 Systemwide Rolling Stock Systemwide - Bombardier (Sentinel) OH 2,398,765 961,061 560,551 605,619 302,812 9,769,298 14,598,106 518110 Ventura - VC County Track Ventura VC Rpl Tie+Ballast - - - - 449,469 - 449,469 518620 Orange Structures Orange Sub Struct-San Clemente - 173,195 - 195,527 - - 368,721 518630 Orange Track Orange Sub Grde Xing Rehab - 121,251 - - - - 121,251 519001 Systemwide Signal Sys Bk Office Hd&Sftwre Replmt 286,671 119,497 66,990 86,907 43,453 - 603,518 519002 Systemwide Signal Sys BK Office Sys Upgrd&Test 170,244 67,530 28,711 22,549 22,425 - 311,458 519003 Systemwide Communications Sys PTC Lab Sys Support&Test 614,806 256,277 143,670 186,383 93,192 - 1,294,328 519011 Systemwide Track System Track Asset Cond Assmnt' 79,358 33,080 18,545 24,058 12,029 - 167,070 519012 Systemwide Track System SOGR Prioritization 242,667 101,154 56,708 73,567 36,783 - 510,879 519020 River Structures System Arryo Seco Bridge Design 450,272 187,692 105,221 136,503 68,252 - 947,941 519031 Systemwide Signal System Bk Office Hrd&Sftwre Repl 375,725 156,618 87,801 113,904 56,952 - 791,000 519032 Systemwide Signal System Prod Back Office Upgrades 198,669 82,814 46,426 60,228 30,114 - 418,250 519033 Shortway Signal SB Shortway Grade Xing Rehab 375,508 156,528 87,756 113,837 - - 733,630 519034 Shortway Facilities Shortway EMF Improv 426,053 177,596 99,569 129,160 - - 832,378 519040 Systemwide Communications System PTC Software Updates 217,260 90,563 50,770 65,864 32,932 - 457,390 519041 Systemwide Facilities System PTC Lab Sys Support&Test 596,838 248,787 139,472 180,936 90,468 - 1,256,500 519050 Systemwide Rolling Stock System Bombardier Midlf O/Haul 6,733,125 2,806,650 1,573,425 2,041,200 1,020,600 - 14,175,000 519051 Systemwide Rolling Stock System Locomtv&Cab Camdvr Repl 484,638 202,017 113,252 146,922 73,461 - 1,020,290 519052 Systemwide Rolling Stock System O/Haul ROTEM Siderdr Mtr 270,512 112,761 63,215 82,008 41,004 - 569,499 519053 Systemwide Rolling Stock System HVAC O/Haul 40ROTEM Cars 481,132 203,202 108,170 147,475 72,929 - 1,012,909 519054 Systemwide Rolling Stock System Rubber Window Gasket Repl 220, 310 91,834 51,483 66,789 33,394 - 463,810 519055 Systemwide Rolling Stock System Pushback Cplr O/Haul ROTEM 1,653,075 686,804 382,737 496,210 237,577 - 3,456,401 519060 Systemwide Facilities Syst CMF Car Shop Jacks 390,353 162,716 91,219 118,339 59,169 - 821,796 519062 Systemwide Facilities Syst Restroom Reno CMF MOC 397,114 165,534 92,800 120,388 60,195 - 836,030 519063 Systemwide Vehicle System MOW Vehicle Replacement 666,943 278,010 155,854 202,189 101,095 - 1,404,091 519064 Systemwide Facilities System Station Envlpe Rpr/Repl 203,945 97,911 40,789 65,289 40,789 - 448,723 519070 Systemwide Information Technology Syst Switch Equip Repl 96,052 40,039 22,446 29,119 14,559 - 202,214 519090 Systemwide Track System Entrprs Asst Mgmt Migr 543,549 226,574 127,019 164,781 82,391 - 1,144,314 519091 Systemwide Information Technology System TVM Components 34,012 14,178 7,948 10,311 5,156 - 71,604 519092 Systemwide Information Technology Syst Cond Based Maint Eqpt 25,311 10,551 5,915 7,673 3,837 - 53,288 519093 Systemwide Information Technology Syst Maximo Upgrade 330, 098 137,598 77,139 100,072 50,036 - 694,943 519120 Ventura - VC County Structures VC Ventura ArroSimi Scour Prtn - - - - 1,231,524 - 1,231,524 519130 Ventura - VC County Track Ventura VC Grd Xng Rehab&Tnnl26 - - - - 986,276 - 986,276 519160 Ventura - VC County Facilities Ventura VC Repl Moorpark Tlr - - - - 1,035,258 - 1,035,258 519210 Ventura - LA County Track Ventura LA Track Rehab 1,102,111 - - - - - 1,102,111

28 MEMBER AGENCY PROJECT TOTAL # Subdivision CATEGORY PROJECT NAME METRO OCTA RCTC SBCTA VCTC OTHER CARRYOVER 519211 Ventura - LA County Track Ventura LA Station Pdstrn Xing 71,692 - - - - - 71,692 519220 Ventura - LA County Track Ventura LA ROW Grinding/Ditching 215,509 - - - - - 215,509 519230 Ventura - LA County Signal Ventura LA Tnnl26 Elec Srv Rpl 342,491 - - - - - 342,491 519240 Ventura - LA County Communications Ventura LA FY19 Comm Rehab 9,276 - - - - - 9,276 519310 Valley Track Valley Tnnl 25 Track Rehab 641,644 - - - - - 641,644 519320 Valley Track Valley ROW Grading/Ditching 215,456 - - - - - 215,456 519330 Valley Signal Valley FY19 Signal Rehab 414,195 - - - - - 414,195 519340 Valley Communications Valley FY19 Comm Rehab 69,760 - - - - - 69,760 519410 San Gabriel Track San Gabriel FY19 Track Rehab 1,950,721 - - 1,300,499 - - 3,251,220 519411 San Gabriel Track San Gabriel Replace Turnouts 729,044 - - 486,029 - - 1,215,073 519420 San Gabriel Structures San Gabriel LA Bridge Repl 444,538 - - 296,359 - - 740,897 519430 San Gabriel Signal San Gabriel Grade Xing Rehab 2,074,325 - - 1,382,884 - - 3,457,209 519440 San Gabriel Communications San Gabriel Wysd Comm Repl Pts 156,007 - - 104,005 - - 260,012 519510 Orange & Olive Track Orange/Olive Track Rehab - 2,126,213 - - 57,281 - 2,183,494 519520 Orange & Olive Track Orange/Olive ROW Grading/Ditching - 79,066 - - - - 79,066 519621 Orange Structures Orange Bridge Repl Des MP200.2 - 825,641 - - - - 825,641 519630 Orange Signal Orange Signal Rehab - 1,331,695 - - - - 1,331,695 519640 Orange Communications Orange Comm Rehab - 122,833 - - - - 122,833 519710 River Track River LA Union Station Rehab 4,987,433 2,078,972 1,165,484 1,511,979 755,990 - 10,499,859 519711 River Track River Track Rehab 940,643 392,099 219,813 285,163 142,582 - 1,980,300 519712 River Track River LAUS Trk & Signal Rehab 1,670,813 696,465 390,443 506,520 253,260 - 3,517,500 519730 River Signal River Signal Rehab 1,030,688 229,915 207,915 269,728 134,864 - 1,873,110 519731 River Sub - East Bank Signal River East Bank Zone 2 Signal Rehab 52,030 21,688 12,159 15,774 7,887 242,674 352,212 519732 River Sub - West Bank Signal River West Bank P1 Sig Sys Rehab 1,323,143 551,542 309,198 401,122 200,561 - 2,785,565 519733 River Sub - East Bank Signal River East Bank Zone 1 Repl AC Meter 1, 919 800 449 582 291 87,379 91,420 519740 River Sub - West Bank Communications River WB Comm Rplcmt Prts 79,815 33,270 18,651 24,197 12,098 - 168,032 519741 River Sub - East Bank Communications River East Bank Comm Rehab 6,623 2,761 1,548 2,008 1,004 30,892 44,835 519760 Systemwide Facilities Systemwide LAUS W Portal Exp 201,163 83,853 47,009 60,984 30,492 - 423,500 519910 Parris Valley Track PVL Track Rehab - - 2,538,074 - - - 2,538,074 519911 Parris Valley Structures PVL Box Springs Drainage - - 58,471 - - - 58,471 519940 Parris Valley Communications PVL Com Rehab - - 33,903 - - - 33,903 520010 Systemwide Track Rail Grinding FY20 451,074 188,027 105,409 136,747 68,373 - 949,630 520011 Systemwide Track Systemwide Lubrication Study 527,098 219,717 123,174 159,794 79,897 - 1,109,680 520050 Systemwide Rolling Stock GEN 1 HVAC OH Add'l 40 Cars 427,576 178,232 99,918 129,623 64,812 - 900,160 520051 Systemwide Rolling Stock HVAC OH 40 Rotem Passenger 599, 486 249,891 140,091 181,739 90,870 - 1,262,077 520052 Systemwide Rolling Stock OH Rotem Car Side Door 286,338 119,358 66,913 86,806 43,403 - 602,816 520053 Systemwide Rolling Stock MP36 Loco & Tier IV Study 299,488 124,839 69, 986 90,792 45,396 - 630,500 520060 Systemwide Facilities Facilities Rehabilitation 1,468,671 612,204 343,205 445,239 222,620 - 3,091,939 520061 Systemwide Vehicle Systemwide Non-Revenue Fleet 460,759 192,064 107,672 139,683 69,841 - 970,019

29 MEMBER AGENCY PROJECT TOTAL # Subdivision CATEGORY PROJECT NAME METRO OCTA RCTC SBCTA VCTC OTHER CARRYOVER 520062 Systemwide Vehicle MOW Vehicle Replacement 1,450,542 604,647 338,969 439,743 219,872 - 3,053,773 520063 Systemwide Facilities CMF & EMF Mod Study 356,002 148,397 83,192 107,925 53,962 - 749,478 520110 Ventura - VC County Track Ventura Sub (VC) Track Rehab - - - - 1,813,900 - 1,813,900 520120 Ventura - VC County Structures Ventura (VC) Structures Rehab - - - - 2,425,000 - 2,425,000 520130 Ventura - VC County Signal Signal System (VC) - - - - 3,665,000 - 3,665,000 520140 Ventura - VC County Communications ATCS/PTC/CIS/BH Ven (VC) - - - - 183,791 - 183,791 520210 Ventura - LA County Track Ventura Sub (LA) Track Rehab 2,227,896 - - - - - 2,227,896 520240 Ventura - LA County Communications Ventura (LA) ATCS/PTC/CIS/Backhaul 369,182 - - - - - 369,182 520310 Valley Track Valley Sub Track Rehab 9,384,465 - - - - - 9,384,465 520330 Valley Signal Valley FY20 Signal Rehab 2,236,557 - - - - - 2,236,557 520331 Valley Signal Pedestrian Gates at Stations 1,455,015 - - - - - 1,455,015 520340 Valley Communications Valley ATCS/PTC/CIS/Backhaul 337,172 - - - - - 337,172 520410 San Gabriel Track San Gabriel Sub Track Rehab 4,236,960 - - 2,824,640 - - 7,061,600 520420 San Gabriel Structures San Gabriel Sub - Structure Rehab 1,346,166 - - 897,444 - - 2,243,610 520430 San Gabriel Signal Signal System (SG) Rehab 3,468,350 - - 2,312,234 - - 5,780,584 520440 San Gabriel Communications ATCS/PTC/CIS/BH (SG) Rehab 199,742 - - 133,162 - - 332,904 520610 Orange & Olive Track Orange/Olive Sub Track Rehab - 7,013,100 - - - - 7,013,100 520620 Orange Structures Orange Country Structures Rehab - 2,308,600 - - - - 2,308,600 520640 Orange Communications ATCS/PTC/CIS/BH Orange Rehab - 583,649 - - - - 583,649 520740 Riverside Communications ATCS/PTC/CIS/BH River 114,542 47,746 26,767 34,724 17,362 - 241,142 520940 Parris Valley Communications ATCS/PTC/CIS/BH San Jacinto PVL - - 305,162 - - - 305,162 52XXX TBD (METRO) Various METRO Reprogramming/MOU2020 3,900,000 - - - - - 3,900,000 591802 San Gabriel Track CP Beech Turnout Replacements - - - - - 47,084 47,084 591804 Ventura - VC County Facilities Ventura VC Safety Improvements - - - - 157,707 43,563 201,270 591806 River Track LAUS Track & Signal Mod - - - - - 9,434,605 9,434,605 591902 Orange Track Orange Sub Slope Stabilization - 466,986 - - - - 466,986 592111 Ventura - VC County Track Turnout at CP Santa Susana - - - - 19,983 - 19,983 592120 Ventura - VC County Structures VC Bridge and Culvert Rehab - - - - 686,675 - 686,675 592210 Ventura - LA County Track Ventura-LA Tie & Turnout Repl 11,005 - - - - - 11,005 592220 Ventura - LA County Structures Ventura-LA Bridge MP 458.71 357,118 - - - - - 357,118 592310 Valley Track Valley Tie Repl MP 46-64 51,322 - - - - - 51,322 592320 Valley Structures Valley Bridge MP 50.64 143,261 - - - - - 143,261 592321 Valley Structures Valley Bridge MP 50.51 123,646 - - - - - 123,646 592322 Valley Structures Valley Bridge MP 50.77 148,078 - - - - - 148,078 592323 Valley Structures Valley Bridge MP 47.45 4, 092 - - - - - 4,092 592324 Valley Structures Valley Bridge MP 50.46 80,992 - - - - - 80,992 592325 Valley Structures Valley Culvert MP 55.91 2,148 - - - - - 2,148 592420 San Gabriel Structures SG Repl Bridge MP 40.12 SOGR 228,969 - 152,659 - - 381,627 592711 River Track River Repl CP Taylor Turnouts 19,798 8,253 4,627 6,002 3,001 - 41,680

30 MEMBER AGENCY PROJECT TOTAL # Subdivision CATEGORY PROJECT NAME METRO OCTA RCTC SBCTA VCTC OTHER CARRYOVER 592712 River Sub - East Bank Track River East Bank Zone 1 Rail&Tie 17,672 7,364 4,109 5,371 2,686 804,304 841,506 592713 River Sub - East Bank Track River EB Zone 2 Turnouts SOGR 3,738 1,564 880 1,130 577 17,475 25,363 593220 Ventura - LA County Structures Ventura LA Bridge 452.1 158,044 - - - - - 158,044 593310 Valley Track Valley Sub Lang,Actn To,Ties 144,985 - - - - - 144,985 593320 Valley Structures Valley Bridges SOGR PH2 1,626,038 - - - - - 1,626,038 593410 San Gabriel Track San Gabriel Sub Lark Ellen Xing 40,616 - - 27,076 - - 67,692 TOTAL 77,444,341 33,061,077 11,612,895 21,309,133 18,613,814 21,618,574 183,659,834

31 FY2020-21 NEW CAPITAL CARRYOVER PROJECTS

MEMBER AGENCY TOTAL PROJECT # SUBDIVISION CATEGORY PROJECT NAME METRO OCTA RCTC SBCTA VCTC OTHER CARRYOVER 409006 Systemwide Track Empire Ave./I5 Widing Burbank - - - - - 374,603 374,603 416001 Systemwide Security Maint. Fac. Hardening - - - - - 1,581,121 1,581,121 416002 Systemwide Security Systemwide SOC at DOC ENH - - - - - 42,538 42,538 417001 Systemwide Security Station Surveillance - - - - - 2,387,679 2,387,679 418001 Systemwide Communications Security Data Network - - - - - 4,214,177 4,214,177 418003 Orange Signal San Juan Capistrano Siding-Con - - - - - 771,570 771,570 418004 San Gabriel Communications SG Redlands Pass. Rail PTC - - - 7,742,560 - - 7,742,560 418005 River Track CMF N END Connet Des 485,288 - 80,040 103,836 - 51,918 721,081 418006 Valley Structures Tunnel 25 Safety & Security - - - - - 2,855,377 2,855,377 419001 Orange Facilities Orange Irvine Maint Fac PH 1 - 133,250 - - - - 133,250 419002 Perris Valley Communications Santiago Peak Microwaves - - 118,246 - - - 118,246 419003 Riverside Structures Riverside Layover Facility-Con - - 146,646 - - - 146,646 419004 Orange Structures Orange/San Juan Creek Bridge - 17,577,932 - - - 20,683,590 38,261,522 419005 Olive Track Imrpov to Anahein Canyon Station - 8,997,821 - - - - 8,997,821 420001 River Signal Riverside Yard Switch 146,228 - 206,133 68,620 - - 420,980 420002 Systemwide Communications Systemwide PTC Shake Alert - - - - - 2,407,362 2,407,362 450110 Systemwide IT PTC Phase II - - - - - 1,000,756 1,000,756 450121 Systemwide Communications PTC Upscaling Onboard - - - - - 34,848 34,848 450122 Systemwide Communications PTS Wayside Upgrade - - - - - 14,000 14,000 450123 Systemwide Communications PTC Wayside Hardward - - - - - 56,000 56,000 613005 Systemwide Rolling Stock TIER 4 Locomotive Proc- T/TASK - - - - - 50,471,276 50,471,276 616002 Systemwide Rolling Stock TIER 4 Locomotives 21-37 - - - - - 8,776,094 8,776,094 616003 Systemwide Rolling Stock TIER 4 Locomotives 38-39 NON-FED - - - - - 6,123,180 6,123,180 618001 Systemwide IT Ticket Vending Machine Replacement 7,056,336 1,301,411 2,599,666 2,145,396 3,433,681 657,248 17,193,737 618002 Systemwide IT Systemwide Defribs for Cab Cars - - - - - 87,811 87,811 620001 Systemwide Signal Trailerized Back-up Generator 48,807 20,345 11,405 14,796 7,398 - 102,752 620002 Systemwide Facilities Tamper, Stabilizer, Regulator - - - - - 3,048,268 3,048,268 620003 Systemwide Facilities Specialized Mtc Equip Phase I 506,839 211,272 118,440 153,652 76,826 - 1,067,029 TOTAL 8,243,497 28,242,030 3,280,576 10,228,859 3,517,906 105,639,417 159,152,284

SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY

SALARY RESOLUTION

FISCAL YEAR 2020-21

EFFECTIVE SEPTEMBER 25, 2020

SALARY RESOLUTION - FISCAL YEAR 2020-21 Page 2

The purpose of the Salary Resolution is to recommend action to be taken by the Board consistent with HR Policy 2.1 Wage and Salary Administration – Salary Program Administration.

SCRRA’s salary program is to attract, develop, invest, and retain our employees. The CEO with support from Human Resources will strive to maintain a total compensation program that includes competitive salaries and benefits, will ensure internal equity and external competitiveness while maintaining fiscal responsibility. This resolution aligns with the strategic goals to improve organizational efficiency, and invest in people and assets.

The Pay for Performance Program links individual contribution and performance, agency goals and merit pay. The cornerstone of the policy is the communication between employees and their supervisors about performance planning, career development and measured performance appraisal.

The salary structure identifies the classification title for every position, places each position within a salary grade and assigns each salary grade a salary range. The salary grade establishes the value of the position in relation to other positions. The salary range establishes the minimum, midpoint and maximum salary for each grade.

For FY 21, the CEO recommends the Board adopt:

(1) Updates to the current Salary Grade and Range Structure with changes to Grades A and B, which have minimums below the minimum wage effective July 1, 2020 – Attachment C-1; (2) Proposed budgeted headcount increase from 280 to 282 positions*; (3) Proposed Classification and Salary Plan** to comply with Government Code 20630, 20636 and 20636.1 and pursuant to these requirements transmit to CALPERS a pay schedule that has been approved and adopted by the governing body – Attachment C-2.

*Pursuant to Memorandum of Understanding No. 20-1002367 between San Bernardino County Transportation Authority and SCRRA, the following positions will account for the increase of headcount from 280 to 282:

• Director, Special Projects (Railroad Operations) / Grade P • Management Analyst I (Railroad Operations) / Grade G

Additionally, please note that the classifications of Associate General Counsel and Senior Counsel, Risk Manager will be upgraded from Grade R to Grade S, contingent upon completion of a classification review.

**The following changes were made to the Classification and Salary Plan:

The following classifications have been added, retitled, eliminated and removed from the classification structure.

Classifications to be added:

1. Chief, Technology Officer (Grade R) 2. Assistant Director (Various) (Grade O) 3. Director, Grants (Grade P) 4. Corporate Sales Specialist (Grade G)

SALARY RESOLUTION - FISCAL YEAR 2020-21 Page 3

Classifications to be retitled:

Current Title: New Title: Assistant Director, SCORE Program (Grade O) Assistant Director (Various) (Grade O) Assistant Board Secretary (Grade I) Assistant Board Secretary/Executive Assistant (Grade I) Director, Government Relations (Grade P) Director, Government & Community Relations (Grade P) Chief, Marketing & Communications (Grade R) Chief, Customer Experience Officer (Grade R) Director, Public Affairs (Grade P) Director, Communications (Grade P) Operations Compliance Officer (Grade L) Compliance Officer (Grade L) Operations Compliance Officer I, II, Sr (Grades I, J, K) Compliance Officer I, II, Sr (Grades I, J, K) Coordinator, Operations Compliance (Grade H) Coordinator, Compliance (Grade H)

Classifications to be phased out based on the Classification and Compensation Program:

Maintenance Technician (Grade E) Program Management Analyst I (Grade J) Assistant Director, Grants (Grade O) Assistant Director, Program Management Office (Grade O)

Prepared by: Roxanne Randolph, Interim Chief, Human Resources

35 Southern California Regional Rail Authority Salary Grade and Range Structure Effective September 25, 2020*

SALARY RANGE GRADE MINIMUM MIDPOINT MAXIMUM A 31,200 39,971 48,739 B 33,081 42,396 51,709 C 34,961 44,794 54,629 D 39,314 50,383 61,449 E 44,495 57,016 69,536 F 50,442 64,630 78,819 G 55,778 71,469 87,161 H 61,892 79,293 96,696 I 69,200 88,667 108,133 J 75,243 96,408 117,572 K 81,201 104,047 126,892 L 90,405 115,827 141,248 M 97,489 124,907 152,327 N 105,943 135,740 165,537 O 114,346 146,510 178,673 P 123,344 158,039 192,735 Q 132,599 169,888 207,178 R 142,952 183,225 223,496 S 164,615 210,840 257,064 T 189,308 242,466 295,623 U 217,705 278,835 339,966 V 250,359 320,660 390,963

All values shown rounded to the nearest $1 *Grades A and B only adjusted due to increase in minimum wage

36 Southern California Regional Rail Authority Proposed FY21 Classification and Salary Plan Effective: 9/25/20

Salary Grade Classification Title Minimum Mid-point Maximum Bi-Weekly $1,200.00 $1,537.35 $1,874.58 Hourly $15.00 $19.22 $23.43 Grade A None Annual $31,200.00 $39,971.00 $48,739.00 Bi-Weekly $1,272.35 $1,630.62 $1,988.81 Hourly $15.90 $20.38 $24.86 Grade B None Annual $33,081.00 $42,396.00 $51,709.00 Bi-Weekly $1,344.65 $1,722.85 $2,101.12 Hourly $16.81 $21.54 $26.26 Grade C None Annual $34,961.00 $44,794.00 $54,629.00 Bi-Weekly $1,512.08 $1,937.81 $2,363.42 Hourly $18.90 $24.22 $29.54 Grade D Administrative Assistant I Annual $39,314.00 $50,383.00 $61,449.00 Customer Relations Representative I Finance Specialist I Inventory Control Operator I Maintenance Technician I Bi-Weekly $1,711.35 $2,192.92 $2,674.46 Hourly $21.39 $27.41 $33.43 Grade E Administrative Assistant II Annual $44,495.00 $57,016.00 $69,536.00 Customer Relations Representative II Finance Specialist II Maintenance Technician II Inventory Control Operator II Department Assistant Material Handler/Operator Bi-Weekly $1,940.08 $2,485.77 $3,031.50 Hourly $24.25 $31.07 $37.89 Grade F Executive Assistant I Annual $50,442.00 $64,630.00 $78,819.00 Senior Administrative Assistant Senior Customer Relations Representative Senior Finance Specialist Senior Inventory Control Operator Senior Maintenance Technician

Red (18): Phase out current class 1 37 Southern California Regional Rail Authority Proposed FY21 Classification and Salary Plan Effective: 9/25/20

Salary Grade Classification Title Minimum Mid-point Maximum Accounts Payable Specialist I Bi-Weekly $2,145.31 $2,748.81 $3,352.35 Hourly $26.82 $34.36 $41.90 Grade G Business Analyst I Annual $55,778.00 $71,469.00 $87,161.00 Civil Design Specialist Contract Specialist Corporate Sales Specialist Executive Assistant II Finance Analyst I Human Resources Specialist Management Analyst I Public Affairs Specialist Bi-Weekly $2,380.46 $3,049.73 $3,719.08 Hourly $29.76 $38.12 $46.49 Grade H Accountant I Annual $61,892.00 $79,293.00 $96,696.00 Auditor I Budget Analyst I Coordinator, Compliance Coordinator, Customer Relations Coordinator, Facilities Maintenance Coordinator, Fleet Maintenance Coordinator, Grants Funding & Reporting Coordinator, Marketing Coordinator, Right-Of-Way Coordinator, Safety & Compliance Senior Civil Design Specialist Senior Executive Assistant Bi-Weekly $2,661.54 $3,410.27 $4,158.96 Hourly $33.27 $42.63 $51.99 Grade I Accountant II Annual $69,200.00 $88,667.00 $108,133.00 Assistant Board Secretary/Executive Assistant Budget Analyst II Business Analyst II

Red (18): Phase out current class 2 38 Southern California Regional Rail Authority Proposed FY21 Classification and Salary Plan Effective: 9/25/20

Salary Grade Classification Title Minimum Mid-point Maximum Compliance Officer I Executive Assistant to the CEO Finance Analyst II Human Resources Analyst I Management Analyst II Railroad Civil Engineer I Railroad Systems Engineer I Train Control Systems Engineer I Business Analyst Capital Budget Analyst Grants Funding and Reporting Administrator Bi-Weekly $2,893.96 $3,708.00 $4,522.00 Hourly $36.17 $46.35 $56.53 Grade J Board Secretary/Chief, Board Relations Annual $75,243.00 $96,408.00 $117,572.00 Business Operations Administrator Compliance Officer II Contract & Compliance Administrator Customer Relations Administrator Facilities Maintenance Supervisor Human Resources Analyst II Mechanical Operations Officer I Network Engineer I PTC Equipment Engineer I Salesforce Developer Senior Accountant Senior Budget Analyst Senior Business Analyst Senior Finance Analyst Senior Management Analyst Supervisor, Customer Relations Bi-Weekly $3,123.12 $4,001.81 $4,880.46 Hourly $39.04 $50.02 $61.01 Grade K Auditor II Annual $81,201.00 $104,047.00 $126,892.00

Red (18): Phase out current class 3 39 Southern California Regional Rail Authority Proposed FY21 Classification and Salary Plan Effective: 9/25/20

Salary Grade Classification Title Minimum Mid-point Maximum Configuration Management Manager Corporate Accounts Manager Customer Relations Manager Government Relations Manager Information Technology Manager IT Architect I Manager (various) I Marketing Manager I Mechanical Operations Officer II Network Engineer II Operations Administrator Planning Manager I Project Engineer I PTC Equipment Engineer II Public Affairs Manager Public Safety Manager Railroad Civil Engineer II Railroad Systems Engineer II Security Manager Senior Compliance Officer Senior Contract & Compliance Administrator Senior Human Resources Analyst Social Media Manager Supervisor, Communications Systems Supervisor, Inventory Control Supervisor, Maintenance Technician Supervisor, Signal Systems Supervisor, Track & Structures Train Control Network Engineer Train Control Systems Engineer II Web Services Manager Business Administrator District T & S Maintenance Supervisor

Red (18): Phase out current class 4 40 Southern California Regional Rail Authority Proposed FY21 Classification and Salary Plan Effective: 9/25/20

Salary Grade Classification Title Minimum Mid-point Maximum Bi-Weekly $3,477.12 $4,454.88 $5,432.62 Hourly $43.46 $55.69 $67.91 Grade L Field Operations Manager Annual $90,405.00 $115,827.00 $141,248.00 IT Architect II Manager (various) II Marketing Manager II Planning Manager II Principal Contract & Compliance Administrator Project Engineer II Rolling Stock Engineering Manager I Senior Auditor Senior Engineer, Track & Structures Senior Mechanical Operations Officer Senior Network Engineer Senior PTC Equipment Engineer Senior Railroad Civil Engineer Senior Railroad Systems Engineer Senior Train Control Systems Engineer Compliance Officer (Formerly Operations Compliance Officer) Program Management Analyst II Public Safety & Environment Manager Bi-Weekly $3,749.58 $4,804.12 $5,858.73 Hourly $46.87 $60.05 $73.23 Grade M Business Intelligence Manager Annual $97,489.00 $124,907.00 $152,327.00 Rolling Stock Engineering Manager II Senior IT Architect Senior Manager, Business Operations Senior Manager, Communication Systems Senior Manager, Compliance Senior Manager, Contract & Compliance Senior Manager, Customer Relations Senior Manager, Facilities & Fleet Maintenance Senior Manager, Fare Collections

Red (18): Phase out current class 5 41 Southern California Regional Rail Authority Proposed FY21 Classification and Salary Plan Effective: 9/25/20

Salary Grade Classification Title Minimum Mid-point Maximum Senior Manager, Finance Senior Manager, Inventory Control Senior Manager, Marketing & Digital Programs Senior Manager, Talent Development Senior Project Engineer Senior Manager (Various) IT Systems Manager Program Manager Bi-Weekly $4,074.73 $5,220.77 $6,366.81 Hourly $50.93 $65.26 $79.59 Grade N Principal Engineer Annual $105,943.00 $135,740.00 $165,537.00 Senior Manager, Audit Senior Manager, General Accounting Senior Manager, Government & Regulatory Affairs Senior Manager, Grants & Capital Development Senior Manager, Human Resources Senior Manager, Information Technology Senior Manager, Project Management Bi-Weekly $4,397.92 $5,635.00 $6,872.04 Hourly $54.97 $70.44 $85.90 Grade O Assistant Director (various) Annual $114,346.00 $146,510.00 $178,673.00 Senior Manager, Dispatching Senior Manager, Maintenance of Equipment Senior Manager, Signal Systems Senior Manager, System Safety Senior Manager, Track & Structures Senior Manager, Train Control Systems Senior Manager, Train Control Systems Design Senior Manager, Train Control On-Board Systems Assistant Director, Maintenance of Equipment Assistant Director, PTC Technical Services Assistant Director, Signal Systems Assistant Director, T&S Rehabilitation

Red (18): Phase out current class 6 42 Southern California Regional Rail Authority Proposed FY21 Classification and Salary Plan Effective: 9/25/20

Salary Grade Classification Title Minimum Mid-point Maximum Bi-Weekly $4,744.00 $6,078.42 $7,412.88 Hourly $59.30 $75.98 $92.66 Grade P Director, Contracts, Procurement and Materials Management Annual $123,344.00 $158,039.00 $192,735.00 Director, Grants Director, Maintenance of Equipment Director, Communications Director, Customer Experience Director, Government & Community Relations Director, Material Management Director, Program Management Director, Signals & Communications Director, Special Projects Director, System Safety & Security Director, Train Control Systems Special Assistant to the CEO Bi-Weekly $5,099.96 $6,534.15 $7,968.38 Hourly $63.75 $81.68 $99.60 Grade Q Controller Annual $132,599.00 $169,888.00 $207,178.00 Chief of Staff Chief, Safety, Security, & Compliance Officer Director, Dispatching Operations Director, Engineering & Construction Director, Planning & Development Bi-Weekly $5,498.15 $7,047.12 $8,596.00 Hourly $68.73 $88.09 $107.45 Grade R Chief, Customer Experience Officer Annual $142,952.00 $183,225.00 $223,496.00 Chief, Human Resources Chief Technology Officer Director, Information Technology Senior Director, Information Technology

Red (18): Phase out current class 7 43 Southern California Regional Rail Authority Proposed FY21 Classification and Salary Plan Effective: 9/25/20

Salary Grade Classification Title Minimum Mid-point Maximum Bi-Weekly $6,331.35 $8,109.23 $9,887.08 Hourly $79.14 $101.37 $123.59 Grade S Associate General Counsel* Annual $164,615.00 $210,840.00 $257,064.00 Deputy Chief Operating Officer - Dispatch & Operations Chief Strategy Officer Senior Counsel, Risk Manager* Bi-Weekly $7,281.08 $9,325.62 $11,370.12 Hourly $91.01 $116.57 $142.13 Grade T Chief Financial Officer Annual $189,308.00 $242,466.00 $295,623.00 Chief Operating Officer Chief, Program Delivery Bi-Weekly $8,373.27 $10,724.42 $13,075.62 Hourly $104.67 $134.06 $163.45 Grade U Deputy Chief Executive Officer Annual $217,705.00 $278,835.00 $339,966.00 General Counsel Bi-Weekly $9,629.19 $12,333.08 $15,037.04 Hourly $120.36 $154.16 $187.96 Grade V Chief Executive Officer Annual $250,359.00 $320,660.00 $390,963.00

*Upgrade from Grade R to Grade S contingent upon completion of classification review.

Red (18): Phase out current class 8 44 Budget Process Video Link: https://youtu.be/HsMCp2FbNhI

45 ITEM 8.B

ITEM ID: 2020-116-0

TRANSMITTAL DATE: September 18, 2020

MEETING DATE: September 25, 2020

TO: Board of Directors

FROM: Stephanie Wiggins, Chief Executive Officer

SUBJECT: Recovery Plan Framework

Issue

Recommendation

It is recommended that the Board:

1. Approve the Final Draft Recovery Plan Framework; and 2. Receive and File the update on our recovery efforts.

Strategic Goal Alignment

This action aligns with the strategic goals to ensure a safe operating environment; improve communication between customers and stakeholders; and improve organizational efficiency. The Recovery Plan Framework focus is on ensuring the safety of passengers and employees and restoring service in a post-stay-at-home-order environment.

46 Background

In February 2020, job growth and higher gasoline prices continued to create favorable economic conditions for Metrolink. System-wide ridership was 1,013,757 (8.3% higher than the same month the previous year) with most lines reporting their best ridership growth in many months. Metrolink was on track to have another year of record-breaking ridership.

On March 11, the World Health Organization declared COVID-19 a pandemic, and Metrolink ridership began to decline. With the closing of K-12 schools, followed by the California stay-at- home orders on March 19, our ridership declined precipitously; by April, daily ridership stabilized at approximately 10% of ridership compared to the same month in 2019.

As a result of plummeting ridership, Metrolink experienced a 90% decline in fare revenue. Federal Coronavirus Aid, Relief, and Economic Security (CARES) Act funding will be made available to the Authority, via Member Agencies, to assist in offsetting the revenue loss.

Initially presented to the Board at its May 27, 2020 meeting, the Draft Recovery Plan Framework, which has since been updated in Attachment A, is designed to protect employees and customers against the spread of COVID-19 while taking a phased approach to position Metrolink as smarter, better, and essential for post-stay-at-home operations through the following strategies:

1. Health & Safety 2. Operational Transparency 3. The Triple Bottom Line 4. Future-Proof Operations 5. Sustainable Financial Performance.

At its June 26, 2020 meeting, staff provided an update on the Draft Framework and the Board authorized a temporary change to the age eligibility to support the “Kids Ride Free Weekends” campaign.

Staff provided additional updates on the Draft Framework to the Board at its July 24, 2020 and August 21, 2020 meetings.

Discussion

Since the last Board Meeting, progress has been made on all five areas of the draft Framework, as highlighted below:

1. Health & Safety: Commuting Together, Socially Distant As it becomes evident that the use of face masks is the most powerful tool we have to prevent the spread of COVID-19, staff continue to place emphasis on compliance in this area. We have seen a 99% compliance to the policy among our riders and are providing face masks to those who don’t have one.

Two weeks ago, the American Public Transportation Association (APTA) publicized a new report that shows there is no direct correlation between using public transportation and the transmission of COVID-19. The study, which analyzed public transit use in multiple US and international cities this summer, also found that there will be long-term negative health consequences if large numbers of people switch from public transit to private cars. Read the report here.

2. Operational Transparency: Fast-Track Customer Confidence Staff has nearly completed all the steps in our plan geared towards earning consumer confidence that our system is safe. Our enhanced cleaning processes are implemented, and the Clean Care Crew has been staffed up and is visibly cleaning trains in the field. Signs on trains transparently inform riders about the last time the train was cleaned. Station attendants who will maintain and clean our ticket machines, signage and other items at our stations are hired and trained and have begun working in the field. And the Mechanical team is in the process of applying new air filter antimicrobial technology for the train car HVAC system across the fleet. This will be complete within six weeks:

At the same time, staff continues to communicate to riders and the community at large the steps taken to keep Metrolink trains clean and disinfected. This includes ensuring the Clean Commute message is a part of all marketing and communications campaigns, including the Kids Ride Free Weekends and Five-Day Flex Pass launches. Additionally, as approved by the Board last month, on September 9 APTA announced the national Health and Safety Commitments (HSC) Program, which will allow us to display a seal of approval on all Metrolink trains assuring riders that we are taking all the necessary steps to keep our riders and employees safe from the spread of COVID-19. The Marketing Communications team will in the coming weeks push out a concerted earned and paid media campaign to communicate our efforts – inclusive of the new air filters that will be installed soon.

3.The Triple Bottom-Line: Economy, Environment, Equity Staff are putting the finishing touches on the SoCal Explorer loyalty program, still with an expected launch date by the end of September – along with the Explore destination campaign. Additionally, staff are planning a campaign leading up to Thanksgiving to launch enhancements to the loyalty program, including the ability to redeem points for items, including shirts, mugs and other branded items from a new Metrolink Online Store. This campaign will carry the strong message that Metrolink is a partner to local businesses, important as we head into Small Business Saturday, which takes place the Saturday after Thanksgiving.

Staff also launched this week an environmental focused campaign designed to reinforce Metrolink’s importance to creating a healthier, more sustainable California. The campaign began on Car Free Day with immersive 360º video vignettes that illustrate the Metrolink Experience, and demonstrate that, no matter who you are, Metrolink can be a part of your lifestyle – so you, too can contribute to a healthier Southern California in this way. The campaign will continue with fresh content leading up to Clean Air Day, when we will issue a

48 #TakeTheTrain challenge – inviting people to pledge to try Metrolink. Those who take the pledge will receive a free round-trip ticket to try out Metrolink on the date they choose. People will also be invited to use our new Impact Calculator, where they can calculate how their Metrolink rides can contribute to a healthier Southern California.

4. Future-Proof Operations: More Efficient Stewardship Optimize Operations: As shared previously with the Board, our service level may not resume the same way it was reduced. The Operations Department previously published guidelines for restoration of service.

On July 24, 2020, the Board was approached by a Metrolink rider asking for Metrolink trains 101 and 110 to be restored because of the lack of morning service from Los Angeles to the San Fernando Valley. Although the reimplementation of service did not meet the service restoration threshold due to crowding, staff recognized that the draft Recovery Framework of “Optimizing Operations” did provide opportunity of reconnecting Los Angeles to Moorpark riders during the mornings with a service that was non-existent at the time. The restoration of this service occurred on September 10, 2020.

5. Sustainable Financial Performance Critical for a sustainable financial performance is the adoption of the operating budget for FY21 which the Board will consider at its September 25, 2020 meeting.

The Agency will continue to track the Medium Case Ridership Recovery Plan versus actual. All formal adjustments to Ridership Recovery forecast will be done at mid-year. (See Attachment A, Graph A.)

Marketing and Communications Strategy The Marketing & Communications team last month launched campaigns to regain ridership as more of the region begins opening up. First, on the week of August 24, the Kids Ride Free on Weekends promotion approved by the Board at the June Board meeting was announced. In the subsequent weekends, average weekend ridership has increased by 18% while ridership by children increased by 80%. And the Kids Ride Free Weekends promotional landing page on Metrolinktrains.com has had more than 15,000 page-views – making it 9th among all of the pages on the website. (See Attachment A, Graph B.)

On Sept. 2 staff launched the 5-Day Flex Pass -- a new pilot fare type that’s perfect for telecommuters. Since its launch, we have sold 321 5-Day Flex Passes, representing $20,877 in revenue. The promotional landing page has seen 12,166 page-views and ranks 6th among all the pages on our website since launch date. Staff will continue to monitor the success of these promotional fares and will make recommendations to the Board about next steps in the coming months.

Authority Employees and Contractors As of September 17, the Authority had 16 confirmed positive cases of COVID-19 (14 prime contractors and two employees). All SCRRA employees and prime contractor employees have recovered and returned to work.

On August 4, we began SCRRA Recovery Plan training for all employees. The training

49 provides guidance for recovery and ensures all staff are in alignment with the procedures moving forward. Training was completed by August 17 and all active employees have been completed the mandatory training.

Next Steps

Monthly progress reports at regularly scheduled Board meetings.

Approved by: Don Filippi, Chief of Safety & Security Jennifer Vides, Chief of Marketing & Communications Stephanie Wiggins, Chief Executive Officer

Attachment(s)

Attachment A - Graphs and Recovery Plan

50 ATTACHMENT A

Graph A:

Graph B:

51 Draft Recovery Plan “New Normal” Framework

During this phased recovery, building passenger confidence in our service will be key to returning Metrolink to pre-COVID-19 ridership levels. As such, the draft framework below is a ground-up approach that reinforces Metrolink’s customer-focused vision with the pillars of safety & security, an integrated system, and modern business practices. 1. Health & Safety: Commuting Together, Socially Distant Our recent customer survey found 81% of riders are likely to return to Metrolink – but not all at once. While 29% indicate they will return as soon as stay-at-home orders are lifted, some plan to wait for schools to re-open, or for a vaccine or related treatment to be available. Overwhelmingly, riders are concerned about safety and expect expanded cleanliness and enhanced social distancing measures. The Board voted unanimously to delegate discretion authority to the Chief Executive Officer to adopt and apply the most appropriate available public health standard in response to COVID-19. Tactics include:  (Implemented)Train conductors and all Metrolink employees who have contact with customers are required to wear N95 masks and gloves;  (Implemented) Riders are expected to wear face coverings at stations and onboard trains. Children under 2 are exempt. Conductors will provide a face mask/covering to those customers who forget theirs. FEMA via FTA donated 24,500 cloth face coverings for distribution to riders and employees, increasing the total of donated masks to 27,000;  (Implemented) Physical decals/markings at stations to ensure that customers social distance at least six feet apart;  (Implemented) “How Full Is My Train?” online tool allows customers to check recent ridership levels to ensure there is space for social distancing;  (Rejected) Blocking off seats to promote social distancing, as ridership demand warrants;  (Implemented) Promoting the use of our touch-free fare payment system -- the mobile ticketing app and the availability of quiet cars on every train; and  (Implemented) Educating riders via Conductor Announcements, the mobile app, onboard signage and emails about practicing social distancing, wearing face coverings, and washing hands frequently; 2.Operational Transparency: Fast-Track Commuter Confidence The customer survey identified riders’ concerns and expectations of Metrolink in the post stay-at-home-order era. Cleanliness is the key motivating factor for both current and former riders. Hand sanitizer availability on all train cars ranked as the most important amenity among riders.

52 “Actions speak louder than words.”1 The nature of the public health crisis requires more than telling riders about Metrolink’s enhanced cleaning measures, we need to show them as well. Trust is a catalyst for recovery. Transparency increases trust and confidence. One way to “show” our riders is through operational transparency – the “show and tell” of our enhanced cleaning measures. Tactics include:  (Implemented) Install two hand sanitizers on every train car. Will include better signage to increase visibility;  (Implemented) Use of electrostatic sprayers to disinfect trains daily;  (Implemented) Visibly cleaning and sanitizing touch points with hospital-grade disinfectants throughout the day with the Clean Care Crew;  (Implemented) Station Attendants to visibly clean station touch points (e.g., ticket vending machines, hand rails);  (Implemented) Prominently post how and when the last cleaning was performed on trains;  (Developing) Upgrading air filters on every rail car with the latest readily available technology that is compatible with the HVAC system; and  (Implemented) Educate passengers, employees, and contractors on all cleaning measures – “New Cleaner Commute campaign” to advance health and safety onboard our trains. 3.The Triple Bottom-Line: Economy, Environment, Equity Health, safety, and operational transparency measures provide a solid foundation to begin recovery. However, the severe impact of COVID-19 on the Southern California economy will be long-lasting, with historic levels of unemployment and sales tax loss. To advance recovery, anything we propose must be in support of job creating businesses.

Pre-COVID-19, 85% of Metrolink Pre- COVID-19 At-Risk Employees (State Average: 21.7%) riders were employed and would be sensitive to the impacts of COVID-19 on the economy and the labor market. A majority of Metrolink riders (68%) worked in at-risk industries. And the share of at-risk employees in Metrolink’s service area exceeded the state average.2 Ten percent of Metrolink riders were under the age of 25. This demographic

1 Abraham Lincoln, Cooper Union Address, 1856 2 Public Policy Institute (www.ppic.org/blog/how-will-the-coronavirus-affect-californias-economy/ 2/5)

53 is more likely to work in higher-risk industries, and disproportionately affected by virus- related layoffs.3 Impacts on the Commute: The Future of Work Post-Stay-at-Home In 2018, more than 30% of Metrolink riders reported that their employers offered remote work or alternative work schedules.

Metrolink riders working for Employers offering Telework by Industry

PERCENT OF RIDERS WITH INDUSTRY EMPLOYERS OFFERING TELEWORK FINANCE 12% GOVERNMENT 4% HEALTHCARE 3% CONSULTING 29% INFORMATION, ENTERTAINMENT 16% SALES AND FOOD SERVICE 1% EDUCATION 7% TRANSPORTATION, UTILITIES 4% CONSTRUCTION 3%

Based upon our 90% ridership decline and recent customer survey, we expect some of our customers forced to work from home because of COVID-19 will continue working remotely after stay-at-home orders are lifted. More than one out of three (38%) of our corporate accounts indicate that they will continue to telecommute or have a modified work schedule. The stay-at-home orders highlight the commute of the Essential Workers4. Of those continuing to ride Metrolink during the pandemic, 71% describe themselves as Essential Workers. Among these Essential Workers 39% work in the healthcare industry and 14% in transportation and logistics. Nearly one-third (32%) of Essential Workers have no vehicle and rely on Metrolink to get to their jobs. (That is double what it was pre-COVID- 19 (15%)). Of note, fare discounts ranked third in importance for essential workers, behind cleanliness and social distancing measures. And, air quality has temporarily improved during the pandemic due to the dramatic reduction in vehicle traffic emissions under stay-at-home orders. This dynamic underscores the environmental benefit when people take the train instead of their car to work, school and appointments. The challenge for Metrolink is clear. What is our value proposition under these new operating conditions? To advance our recovery, we must prepare for a new business

3 Pew Research Center, March 2020 (www.pewresearch.org/fact-tank/2020/03/27/young-workers-likely-to-be- hard-hit-as-covid-19-strikes-a-blow-to-restaurants-and-other-service-sector-jobs/) 4 “Essential (Critical Infrastructure) Workers” as defined by Governor Newsom’s Executive Order N-33-20

54 model that responds to changing consumer demand. Once stay-at-home orders are lifted, tactics include:  Create and pilot new fares to make Metrolink an attractive option in the new normal: o (Implemented) Deploy a telecommuting day pass, for up to six months; o (Developing) Deploy an off-peak discount to encourage employer staggered schedules in support of social distancing, for up to six months; o (Implemented) Deploy “kids ride free on weekends,” for up to six months. The Board approved a temporary policy change on June 26, 2020 to raise the age limit from 6 to 17 for children eligible to ride free with a fare-paying adult on the weekends; o (Developing) Explore the feasibility of a low-income discount;  Strengthen our relationships with the business community: o (Implemented) Expand our corporate partner marketing program to include the healthcare industry and other essential businesses; o (Developing) Incorporate a Small Business Program as part of the Authority’s procurement practices. This will require a policy action. o (Implemented) Locally-source face coverings and hand sanitizer; o (Developing) Deploy a Loyalty Program in partnership with local businesses  Reinforce the ways Metrolink contributes to the community: o (Implemented) Promote the sustainability benefits of Metrolink service, including recent retirement of all Tier 0 locomotives and; o (Implemented) Reinforce Metrolink’s safety commitment and initiatives. 4.Future-Proof Operations: More Efficient Stewardship The impact of the COVID-19 pandemic provides an opportunity for Metrolink to reinvent how we deliver rail service. By March 26, ridership had fallen by 80%, so Metrolink temporarily reduced weekday train service by approximately 30%. This proactive measure was in response to significantly lower ridership, and an effort to help minimize health risks to the operating crews and riders while still providing a critical public service for Essential Workers. Today, the ridership level appears to be at a steady state of 90% decline when compared to a year ago. As we move from response to recovery, our intention is to be flexible while taking a measured approach to implement strategic and sustainable service. Planned tactics include:  (Developing) Optimize operations;  (Developing) Improve coordination with LOSSAN;  (Assessing) Improve first mile/last mile coordination with transit providers; and  (Developing) Leverage opportunities to accelerate capital projects.

55 5.Sustainable Financial Performance Federal CARES Act relief funding is available to reimburse operating revenue losses and additional costs incurred for additional personal protective equipment, enhanced cleanliness and social distancing measures implemented to protect the health and safety of our employees and riders. The Metrolink allocation of CARES Act funding is estimated at $227 million, subject to Member Agency appropriation. While the CARES funding will stave off the worst of the fare revenue loss, a second wave will follow with the hit to local transit agencies as state and local sales taxes plunge due to the stay-at- home orders. To survive this pandemic, Metrolink is also working hard to build a lean organization while driving innovation. This means that all possible waste is eliminated, costs are reduced, and workflows are simplified and streamlined. Tactics include:  (Developing) Managing CARES Act funding  (Developing) Leveraging operating expense efficiencies to reduce pandemic cost increases;  (Implemented) Developing and monitoring ridership recovery scenarios;  (Implemented) Continuing to identify discretionary cost savings and streamlining opportunities across all departments, including workflow; and  (Developing) Identifying and implementing revenue generating ideas. Marketing and Communications Strategy The combination of all five elements of the framework result in a smarter, better, essential Metrolink. In its totality, the marketing and communications strategy reflects the “new normal” roadmap of respond, recover, and thrive. Tactics include:  A strong marketing and communications plan to address health and safety, and operational transparency;  A “Welcome Back”/phased information campaign that incorporates multi-media, multi-lingual, and multi-generation; and  A targeted marketing and communications strategy for corporate partner outreach and other revenue-generating partnership opportunities. Authority Employees and Contractors Throughout the pandemic SCRRA has continued to operate trains for essential workers. The Authority’s front-line employees and contractors have led that charge ensuring safe, reliable, essential service for the region. To ensure that we meet the needs of the riding public, we must ensure we meet the needs of our front-line employees and contractors. It should be noted that in the upcoming 12 months, two new contracts and possibly contractors will be assuming the train operations and the track and signal operations and maintenance functions on the Authority. These contracts incorporate provisions addressing COVID-19 requirements and the post COVID-19 operating and maintenance environments to achieve a safe, customer first and sustainable service.

56 The Authority has taken steps to ensure our essential staff remain safe during these uncertain times. Tactics include:  Educating and discussing the facts  Monitoring and tracing potential cases  Increased facility sanitation and disinfecting  Increased hand sanitizing stations at all facilities  Requirements for social distancing and face coverings  Shift rotation and work location re-assignment  Telecommuting

57 ITEM 8.C

ITEM ID: 2020-102-0

TRANSMITTAL DATE: September 18, 2020

MEETING DATE: September 25, 2020

TO: Board of Directors

FROM: Stephanie Wiggins, Chief Executive Officer

SUBJECT: Coronavirus Health and Safety Measures Prioritization Resolution

Issue

Recommendation

The Board may adopt the resolution.

Strategic Goal Alignment

This report aligns with the strategic goal to invest in people and assets.

Background

On March 4, 2020, a State of Emergency was declared to help California slow the spread of the coronavirus (COVID-19) and Southern California Regional Rail Authority (SCRRA) proactively responded to the public health crisis by reducing the frequency of commuter rail service and implementing a series of health and safety precautions to protect the public and

58 employees.

Discussion

The COVID-19 pandemic continues to be an evolving public health crisis and has presented ongoing and significant challenges that Authority staff has endeavored to overcome in order to deliver safe and reliable transportation services to the public.

Authority staff has worked in close coordination with officials at the federal, state, and local levels in an ongoing effort to monitor and respond to any changes in guidance related to public transit, passenger, and employee health.

Our employees and contractors are the backbone of the Authority. Throughout the pandemic, the Authority has continued to operate trains. Without their continued dedication during this pandemic, essential workers would be left stranded. The Authority's front-line employees and contractors have led the charge ensuring safe, reliable, essential service for the region.

Budget Impact

There is no budget impact as a result of adopting this resolution.

Prepared by: Collette Langston, Board Secretary

Approved by: Don Filippi, Chief Safety, Security & Compliance Officer on behalf of Noelia Rodriguez, Chief of Staff

Attachment(s)

Attachment A - Resolution 20-116

59 RESOLUTION NO. 20-116 OF SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY CORONAVIRUS HEALTH AND SAFETY MEASURES PRIORITIZATION

WHEREAS, on March 4, 2020, a State of Emergency was declared to help California slow the spread of the coronavirus (COVID-19); and

WHEREAS, Southern California Regional Rail Authority (SCRRA) proactively responded to the public health crisis by reducing the frequency of commuter rail service and implementing a series of health and safety precautions to protect the public and employees; and

WHEREAS, SCRRA has coordinated closely with Los Angeles City Mayor Eric Garcetti’s Office and followed the guidance and best practices of the State of California, the Federal Transit Administration, the California Transit Association and others; and

WHEREAS, the SCRRA system is critical to thousands of essential employees who are keeping Los Angeles, Orange, Riverside, San Bernardino and Ventura Counties operating during the public health crisis; and

WHEREAS, all essential workers in five counties, including Metrolink employees and contractors, are the unsung heroes of this public health crisis; and

WHEREAS, SCRRA recognizes its responsibility to each passenger and employee to help them travel safely to their destination and back home to their families in good health; and

NOW, THEREFORE, BE IT RESOLVED that the SCRRA Board of Directors (Board) does hereby support the implementation of all necessary precautionary measures to help prevent the spread of COVID-19 and promote a culture of safety throughout the Metrolink Commuter Rail system and in the workplace; and

BE IT FURTHER RESOLVED that the SCRRA Board recognizes all essential workers throughout all five Counties for their unwavering commitment to serving the public; and

BE IT FURTHER RESOLVED that the SCRRA Board commends the tremendous performance of all of the agency’s employees and contractors, who continue their dedication to keeping Los Angeles, Orange, Riverside, San Bernardino and Ventura Counties moving safely.

60 ITEM 12.A

ITEM ID: 2020-108-0

TRANSMITTAL DATE: September 18, 2020

MEETING DATE: September 25, 2020

TO: Board of Directors

FROM: Collette Langston, Board Secretary

SUBJECT: Approval of Meeting Minutes - August 21, 2020 Special Board Meeting

Recommendation

It is recommended that the Board approve the Minutes of the August 21, 2020 Special Board Meeting.

Prepared by: Collette Langston, Board Secretary

Approved by: Don Del Rio, General Counsel

Attachment(s)

Attachment A - August 21, 2020 Minutes

61 MINUTES OF THE SPECIAL BOARD OF DIRECTORS MEETING AUGUST 21, 2020

ITEM

BOARD MEMBERS/ALTERNATES IN ATTENDANCE VIA WEBEX or TELECONFERENCE: Votes

VCTC: BRIAN HUMPHREY (Chair) 1 (1 vote) Tony Trembley

METRO: ARA NAJARIAN (Vice-Chair) 1 (4 votes) PAUL KREKORIAN 1 Walter Allen, III Roxana Martinez 1 Pam O’Connor Paul Philips1 1

SBCTA: LARRY McCALLON (2nd Vice-Chair) 1 (2 votes) ALAN WAPNER 1 Ray Marquez Javier “John” Dutrey

OCTA: ANDREW DO2 1 (2 votes) DOUG CHAFFEE 1

RCTC: ANDREW KOTYUK 1 (2 votes) KAREN SPIEGEL 1 Brian Berkson Jeff Hewitt

1 Director Philips did not vote on Item No. 6. 2 Director Do arrived at the beginning of Item No. 7.

62 Special Board of Directors Meeting Minutes Transmittal Date: September 18, 2020 Page 2

STAFF/PRESENTERS: STEPHANIE N. WIGGINS, Chief Executive Officer ALEX BARBER, Senior Manager, General Accounting MELISSA COUSART, Contract & Compliance Administrator DON O. DEL RIO, General Counsel DON FILIPPI, Chief, System Safety, Security and Compliance Officer GEOFFREY FORGIONE, Associate General Counsel ARNOLD HACKETT, Interim Chief Financial Officer ISABELLA KANG, Business Analyst II DARRELL MAXEY, Chief of Mobilization, Transition, and Special Projects TODD MCINTYRE, Chief of Strategy NOELIA RODRÍGUEZ, Chief of Staff JENNIFER VIDES, Chief Marketing and Communications Officer COLLETTE LANGSTON, Board Secretary

Meeting minutes are prepared in a format that corresponds with the Board Meeting Agenda, which is incorporated by reference with these minutes. Board Agendas are available online at www.metrolinktrains.com under the Meetings and Agendas link or from the Board Secretary at (213) 452-0255.

1. Call to Order

The August 21, 2020 Special Board of Directors Meeting was called to order by Chair Humphrey who presided over the meeting at 1:01 p.m. at 900 Wilshire Blvd, 12th Floor, Riverside Conference Room, Los Angeles, 90017.

2. Safety Briefing

Don Filippi, Chief, Safety, Security and Compliance Officer conducted the safety briefing.

3. Pledge of Allegiance

Director Hewitt led the group in the pledge of allegiance.

4. Roll Call

The Board Secretary called roll to confirm a quorum of the Board was present.

5. Public Comment

Chair Humphrey called on members of the public who requested to speak.

63 Special Board of Directors Meeting Minutes Transmittal Date: September 18, 2020 Page 3

Jackson Salinas submitted public comment and the Board Secretary read it into the record: Good Afternoon Board Members of Metrolink I am Jackson Salinas of La Verne, California in Los Angeles County in the 5th District. I am speaking out to ask to make Metrolink a 24-Hour Service. Which will have trains running 24-hours a day on all lines. I think it would be beneficial for commuters that work late at night, want to skip traffic, and relax while getting to their destination on time. It would also bring more jobs for people wanting to work for Metrolink. Train engineers and conductors. This will even decrease traffic on freeways by a lot if more people take Metrolink if it goes to a 24-hour service. I am asking everyone on the board to consider this for the passengers of Metrolink.

6. Approval of Consent Calendar Items: 17-19.

ACTION: Upon a single motion by Second Vice-Chair McCallon and seconded by Director Krekorian, the Board approved the Consent Calendar unanimously.

Consent calendar items are listed on pages 8 through 9 of these minutes.

REGULAR CALENDAR

7. Contract No. PO824-20 – Rail Train Procurement – Recommendation to Award – A&K Railroad Materials

Melissa Cousart, Contract & Compliance Administrator, provided a brief background on this item as detailed in the staff report and requested approval of staff’s recommendation.

Director Krekorian asked how many bids were received, where the bidder is located, and what kind of impact will this bidder have for Southern California in terms of jobs. Ms. Cousart responded that the bidder is local, and the jobs will be local.

ACTION: Upon a motion by Director Krekorian and seconded by Director Do the Board authorized the Chief Executive Officer to award Contract No. PO824-20, Rail Train Procurement, to the lowest responsive and responsible bidder, A&K Railroad Materials, for a contract funding authority not-to-exceed $4,088,108, inclusive of tax, delivery, and unloading.

8. Contract No. C3145-20 – LAUS Track Rehabilitation and Modernization Project – Recommendation to Award – RailWorks Track Services, Inc.

Melissa Cousart, Contract & Compliance Administrator, provided a brief background on this item as detailed in the staff report and requested approval of staff’s recommendation.

64 Special Board of Directors Meeting Minutes Transmittal Date: September 18, 2020 Page 4

Director Krekorian asked how the bid amount compared to the engineer’s estimate and how many other bidders there were in total. Ms. Cousart responded that there was a total of 4 bidders for this solicitation and the engineer’s estimate is $20,336,627. Director Krekorian requested that this information be included in all future procurement presentations.

ACTION: Upon a motion by Director Krekorian and seconded by Director Spiegel the Board authorized the Chief Executive Officer to award Contract No. C3145-20 for the LAUS Track Rehabilitation and Modernization (RYRM) Project to the lowest responsive and responsible bidder, RailWorks Track Services, Inc., in an amount of $19,942,109.50, plus a 10% contingency of $1,994,210.95, for a total not-to-exceed amount of $21,936,320.45.

The total amount of contract authority requested for this project is $21,936,320.45 which is included in a combination of the adopted capital budget for FY18/19 and the SCORE budget amendment adopted by the board.

9. Ad Hoc Fuel Hedging Committee Update

Alex Barber, Senior Manager, General Accounting, provided a brief background on this item as detailed in the staff report and requested approval of staff’s recommendation.

Directors Marquez, Trembley and Kotyuk provided summarizing comments of the work that the Ad Hoc Committee has completed to this point.

ACTION: Upon a motion by 2nd Vice-Chair McCallon and seconded by Director Krekorian the Board:

1) Received and filed the Ad Hoc Committee Update; 2) Amended the FY21 Audit Plan to include a Fuel Hedge Program Performance Audit; 3) Approved the change to Finance Policy 11.1, Section 1.1.4 Fuel Management and Hedging Policy; 4) Directed the Ad Hoc Committee to update the Fuel Purchase and Hedging Strategy philosophy; and 5) Directed staff to develop an FTE description with Ad-Hoc Committee.

The amounts for which contract authority is requested are included in the Adopted Operating Budget for FY2020-21 $58,000.

65 Special Board of Directors Meeting Minutes Transmittal Date: September 18, 2020 Page 5

10. Contract No. OP151-21 – Metrolink Train Operator Services – Recommendation to Award – National Railroad Passenger Corporation (Amtrak)3

Darrell Maxey, Chief, Mobilization, Transition and Special Projects, provided a brief background on this item as detailed in the staff report and requested approval of staff’s recommendation.

Vice-Chair Najarian thanked staff for moving quickly on this procurement. It was just a few months ago that we directed you to cancel the big bundle and do a mini bundle instead. Amtrak is giving a good price, but price is not the most important issue. They have the leg up in the mobilization category and we can assume that is because they are already sitting in the engineer’s seat. He is encouraged by the project and programs they have suggested and believes Metrolink will be well served in the future by going with Amtrak.

Director Spiegel agreed with Vice-Chair Najarian and said that Riverside County looks forward to working with Amtrak on this contract.

Director Wapner commented that over the years we have all had issues with Amtrak and although they came in with the lowest price, we have been assured by Amtrak that they have replaced their leadership team and we can have a higher expectation of this new team. More importantly, Ms. Wiggins has a team and crew that can hold them accountable. With these two things in place, in addition to the lower price, allows Directors to put any concerns aside and decide this is the way to go.

Chair Humphrey thanked the vendors and Board members for coming together for this time sensitive item.

ACTION: Upon a motion by Vice-Chair Najarian and seconded by 2nd Vice-Chair McCallon the Board authorized the Chief Executive Officer to: 1) Award Contract No. OP151-21, Metrolink Train Operator Services to National Railroad Passenger Corporation (Amtrak), for a contract service term of four and a half years to expire June 30, 2025. Contract No. OP151-21 specifies a budgeting process that requires Amtrak to submit an annual budget based upon the train schedule and service assumptions provided by the Authority’s Operations Department and approved by the Board. As such, annual contract funding authorization will be requested for each subsequent fiscal year of the Contract term. The award is subject to resolution of any protest timely filed; and 2) Authorize contract funding for mobilization and the first six months of service – January 1, 2021 through June 30, 2021 in the amount of $21,917,032.

3 Presentation available upon request from the Board Secretary.

66 Special Board of Directors Meeting Minutes Transmittal Date: September 18, 2020 Page 6

11. Memorandum of Understanding – DesertExpress High-Speed Rail Connection into Rancho Cucamonga and Palmdale Metrolink Stations – Recommendation to Approve4

Todd McIntyre, Chief Strategy Officer, provided a brief background on this item as detailed in the staff report and requested approval of staff’s recommendation.

Second Vice-Chair McCallon stated that it is exciting to have this connection. It is a great benefit with great possibilities for the 2028 Olympics and Paralympic Games.

Director Martinez mentioned that this is a tremendous opportunity that will increase mobility across the region. It is great to see Metrolink be a strong partner. It adds value. She asked staff to elaborate more on how the MOUs compare to each other and make sure Metrolink maximizes the opportunity. Mr. McIntyre responded that Metrolink is equally excited about the opportunities to connect to other high-speed opportunities throughout the state and beyond. The MOUs are on equal footing and Metrolink looks forward to working with the stakeholders.

Director Berkson said that at the briefing it appeared that the station locations were unclear but during the presentations they are shown at current Metrolink stations. We need to make sure the stations will be at Metrolink stations so there are no bus bridges to make these connections as easy as possible.

Chair Humphrey commented that my understanding is that staff will keep their finger on the pulse of this and should there be any substance change, or anything of significance, they will bring it to the attention of the Board. He reminded those attending the meeting today that the map is not to scale.

ACTION: Upon a motion by 2nd Vice-Chair McCallon and seconded by Director Krekorian the Board authorized the Chief Executive Officer to negotiate and execute:

1) Memorandum of Understanding with DesertExpress Enterprises, LLC for planning station connections and enhanced complementary services to/from the Rancho Cucamonga Metrolink Station and;

2) MOU with DesertExpress Enterprises, LLC for planning station connections and enhanced complementary services to/from the Palmdale Metrolink Station.

4 Presentation available upon request from the Board Secretary.

67 Special Board of Directors Meeting Minutes Transmittal Date: September 18, 2020 Page 7

12. Recovery Plan Framework Update5

Jennifer Vides, Chief of Marketing & Communications, Don Filippi, Chief of Safety, Security, and Compliance and Arnold Hackett, Interim Chief Financial Officer, provided a brief background on this item as detailed in the staff report and requested approval of staff’s recommendation.

Director Dutrey asked are the current passenger counts. Mr. Hackett speculated that the counts were at 15% but would confirm the number.

Director Allen praised staff for a job well done.

ACTION: Upon a motion by 2nd Vice-Chair McCallon and seconded by Director Kotyuk the Board:

1) Received and filed the Draft Recovery Plan Framework Update; and

2) Authorized the Chief Executive Officer to sign up the Authority as a participant in the American Public Transportation Association’s National Transit Recovery Commitment Program.

13. Chief Executive Officer’s Report - Stephanie Wiggins provided comments on the following: . PTC Update – On August 11, the Federal Communications Commission granted us a special temporary authority for Metrolink to implement use of the Southern California PTC Spectrum which we had previously acquired. This temporary authority provides the Authority with the ability to place its Spectrum in service and use it jointly with other shared interoperable PTC railroads. This is a significant milestone for the team as they have been waiting years for conditional approval and will require changes to the PTC radios, notify other Spectrum users such as TV stations that the Spectrum will become active as well as establish an interference trouble call desk. Grant of this special temporary authority and use of the Spectrum is an important final step before obtaining a permanent license for Metrolink to use its Spectrum for PTC. . Central Maintenance Facility – The High-Speed Rail Authority has released their draft environmental document to the Burbank to Los Angeles section of the project. The public period has been extended to August 31, 2020. We have prepared a draft letter for submission; however, we are concerned about the

5 Presentation available upon request from the Board Secretary.

68 Special Board of Directors Meeting Minutes Transmittal Date: September 18, 2020 Page 8

potential impacts to the Central Maintenance Facility and High-Speed Rail has reached out to us to engage in a discussion about a potential MOU to address some of those concerns. We will report out to the Board on any further developments.

Second Vice-Chair McCallon stated that the news on the Spectrum has been a long time coming.

Chair Humphrey reinforced that the team should be thrilled as the Spectrum project underscores our commitment to safety. He compared this milestone to borrowing someone else’s car for work everyday and now we are on our way to having an efficient mode of transportation of our own.

14. Board Members' Comments – none.

15. Chair’s Comments

Chair Humphrey thanked each one of the attendees for coming together during August to handle the important business on the agenda.

16. Board Workshop – continued to a future meeting.

Topics include the Rebrand Exploration themes and the Strategic Business Plan development themes.

CONSENT CALENDAR (as referenced in item 6)

17. Approval of Meeting Minutes – July 24, 2020 Board of Directors Meeting

APPROVED ON CONSENT CALENDAR (11-0) the Minutes of the July 24, 2020 Board of Directors Meeting.

18. Renewal of Agreements for Supplemental Benefits for Authority Employees

APPROVED ON CONSENT CALENDAR (11-0) the Chief Executive Officer to renew the agreements with Vision Service Plan, Mutual of Omaha, Aflac, Discovery Benefits and Health Advocate.

69 Special Board of Directors Meeting Minutes Transmittal Date: September 18, 2020 Page 9

19. Resolutions to Change the Employer Contribution for Health Benefits

APPROVED ON CONSENT CALENDAR (11-0):

1) Adopting Resolution 20-114 to change the employer contribution for health benefits for unrepresented CalPERS members who are active Authority employees or retired and not subject to retiree health vesting; 2) Adopting Resolution 20-115 to change the employer contribution for health benefits for unrepresented Railroad Retirement Board (RRB) employees who are active Authority employees or retired and not subject to retiree health vesting; and

3) Upon completion of the meet and confer process with the Amalgamated Transit Union (ATU), Local 1277, adopt the revision to the Collective Bargaining Agreement (CBA) or side letter between the Authority and ATU employees to change the employer contribution for health benefits for active Authority employees represented by the ATU.

20. ADJOURNMENT

There being no further business for consideration by the Board, the meeting was adjourned at 2:34 p.m.

Prepared by,

Collette Langston Board Secretary

70 ITEM 12.B

ITEM ID: 2020-62-

TRANSMITTAL DATE: July 2, 2020

MEETING DATE: September 25, 2020

TO: Board of Directors

FROM: Stephanie Wiggins, Chief Executive Officer

SUBJECT: July Legislative Update

Issue

Staff provided an update on current legislative affairs.

Recommendation

EXECUTIVE COMMITTEE received and filed this report.

Strategic Goal Alignment

This report aligns with the strategic goal to maintain fiscal sustainability by encouraging federal, state and local funding for Authority priorities. This report also supports improved communications to customers and stakeholders by sharing news, information and the Authority’s legislative priorities with elected officials.

Background

Staff continues to engage with local, state and federal government and community relations stakeholders relating to Metrolink service and relevant policy items.

71 Discussion

Local Update

The Metrolink Community Relations team continues working on updating the CMF community on work related to the CMF drainage project and any other activities that will impact the local neighborhoods because of our operations.

During the month of May, the Community Relations team received several complaints regarding the alarms that were going off on our tunnels 25, 26 and 27 near San Fernando. Working in conjunction with the Safety team the alarms are being updated and reinstalled to ensure that there are no intrusions in the tunnel. Community Relations staff is working with the safety team to finalize the remedy to the alarm problem and to update the community.

The Community Relations team continues planning the next quarterly meeting which was put on hold due to the pandemic and restrictions on large public meetings. The next meeting is currently being planned for September, and confirmation is subject to the status of public health directives. Additionally, Community Relations is investigating the possibility of providing a virtual tour of the Central Maintenance Facility (CMF) to allow for greater community participation.

The Community Relations team continues to work with the Marketing and Communications department to develop collateral materials for the SCORE projects. Once this material is developed and approved, the Community Relations team will coordinate meetings with the communities in which SCORE projects are planned and reach out to Member Agencies.

State Update

On June 3, 2020, the California Legislature announced an agreement on the development of the 2020-2021 State Budget. The Legislature is required by the California Constitution to pass the Budget Bill by June 15, though amendments may be considered based on new revenue data provided by the Department of Finance and tax collection. Following the passage of the Budget Bill, the State Controller’s Office and State Treasurer’s Office typically release supplemental report language for the Budget Act in mid-to-late July.

The legislative budget agreement between the Senate and Assembly marks the next step in passing the Budget Bill and reflect continued negotiations with the Governor’s administration. Overall, the budget agreement reflects the Governor’s commitment to secure additional federal funding in response to slowed economic sectors. The Legislature proposes $11.8 billion in total reserved funds to make the budget whole, including $2.6 billion in discretionary reserves, $900 million in the Safety Net Reserve and $8.35 billion in the Proposition 2 rainy day funds. Additionally, it includes $14 billion of federal funds assumed in the May Revise from passage of the CARES Act and other federal sources. Should any of the federal aid assumed not be secured, the Legislature proposes additional rainy-day funds, deferral of state payments to CalPERS and decreased education funding.

Relating to transportation, the Legislature approved the expected reduction in fuel tax revenues of $1.8 billion through 2024-2025. The Legislature also rejected the request to

72 transfer $130.5 million in interest earnings from the State Highway Account (SHA) to the General Fund. The agreement includes a provision led by the California Transit Association (CTA) to avoid penalties against transit operators relating to farebox recovery ratios impacted by declining ridership. The Legislature requested to defer action on the $965 million Cap and Trade expenditure plan proposal in the January and May budgets. The current public health pandemic and slowing of economic markets has had a significant impact on auction revenues for the Cap and Trade Program. These dramatic reductions have been noted by the Legislative Analyst Office (LAO) for the expected impacts on programs that receive auction revenues, including the California High-Speed Rail Authority.

The CTA is continuing to gather information from statewide stakeholders relating to ongoing funding need and potential regulatory relief recommendations. Metrolink continues to participate in various surveys to help inform these important policy discussions.

Federal Update

Staff continue to work with the offices of Senator Dianne Feinstein, Congressmember Pete Aguilar, Congressmember Lucille Roybal-Allard and Congressmember Norma Torres relating to their roles in the appropriations process. Aligned with the Board-approved legislative program, staff have recommended three funding opportunities that may be included in the Fiscal Year 2021 Transportation, Housing and Urban Development (THUD) Appropriations Bill, The Senate Appropriations Committee began markups for spending bills the week of June 22. The House of Representatives is expected to hold floor votes the end of July. A summary of appropriations requests is provided below.

Proposal Impact Funding would enable a pilot through the Department of $200 million in funding for zero Transportation to guide the national deployment of zero- - emissions rail demonstration. emission rail technologies. $100 million in funding to Funding would enable a pilot through the Federal reduce incidents and Railroad Administration (FRA) to reduce incidents and trespassing in railroad rights- trespassing in rights-of-way. of-way $100 million in funding to Funding would enable the development of develop the next generation of advancements in PTC technology, a critical safety tool Positive Train Control (PTC) for rail operations across the country. technology

Congress continues to consider economic relief legislation in response to COVID-19. Following the passage of the HEROES Act in the House of Representatives, the Senate Committees on Environment and Public Works and Commerce, Science and Transportation held hearings relating to infrastructure and COVID-19 impacts. Staff will continue to work with the offices of Senator Dianne Feinstein (D-CA) and Senator Kamala Harris (D-CA) as further authorizing legislation is considered.

The June 3, 2020 hearing of the Committee on Commerce, Science and Transportation focused on the daily impacts of COVID-19. Witnesses included the Association of American Railroads and the American Federation of Labor and Congress of Industrial Organization

73 (AFL-CIO). The discussion included comments on access to testing, Personal Protective Equipment (PPE) and health-related supplies for the transportation sector. There was a general tone of support for investments in multi-modal infrastructure to support economic activity. Comments by Senators noted the need for additional federal relief and acute impacts to passenger rail operators due to declining ticket revenue.

On June 3, the House Transportation and Infrastructure Committee formally released its priorities for a multi-modal surface transportation reauthorization – the Investment in America Act (HR 7095). The Act includes $494.4 billion in authorizations, including $83 billion in authorizations for general fund apportionments for rail and transit and $412 billion in Highway Trust Fund contract authority. The bill includes a Rail Division funded at $60 billion, approximately five times the amount funded under the current FAST Act authorizing law for rail. The bill is a five-year bill governing FY 2021 through FY 2025. Funding authorized for rail purposes is summarized below.

The Invest in America Act Policy Focus Approved Funding Uses Funding Levels Amtrak Northeast Supports the national network of Corridor $29.3 billion authorized over five intercity passenger rail service, (NEC) and years which is shared with Metrolink’s National service area. Network Passenger Rail Funding for state of good repair Improvement, projects, service improvement Modernization, Authorized at $19 billion for five projects and rail expansion and years projects for intercity rail operators Expansion and high-speed rail projects. (PRIME) Grants FRA Safety and Authorized at $1.165 billion over Funding to support Class II and Operations five years Class III railroad safety. Account Additional funding for railroad Railroad New grade separation grant crossing improvements is Crossing program funded at $2.5 billion included in Metrolink’s Funding over five years reauthorization priorities. Consolidated Rail New direct eligibility for Expanded eligibility for commuter Infrastructure commuter rail and implementing rail under the CRISI Program is and Safety Quiet Zones, authorized at $7 included in Metrolink’s Improvement billion over five years reauthorization priorities. (CRISI) Program

74 Federal 50% increases in rural, urban, Additional federal formula funds Transit state of good repair and benefit Member Agencies and Administration paratransit formulas over five Metrolink. Additional formula (FTA) Formula years funding is part of Metrolink’s Funds reauthorization request. $15 million for State-Amtrak Intercity Passenger Rail Committee, $30 million for Various Amtrak NEC Commission, Amtrak and Funding to support rail service $137.5 million for the Amtrak FRA across the nation. Office of Inspector General, $230 Authorizations million over five years for studying the transport of Liquified Natural Gas (LNG)

Metrolink staff will continue to work with delegation offices, committees of jurisdiction leadership and Member Agencies to secure support for policies that reflect the Board- approved priorities. Consideration of reauthorization legislation in both the House of Representatives and the Senate is expected through the end of the year, when the FAST Act is set to expire.

The June 4, 2020 hearing of the Committee on Environment and Public Works focused on economic growth and recovery through investments in infrastructure. The Committee, chaired by Senator John Barrasso (R-WY), has already approved the surface transportation authorizing legislation governing highway funding – America’s Transportation Infrastructure Act. During the hearing, Senators noted concerns with month-to-month extensions of the full surface transportation authorizing legislation. Witnesses included the American Road and Transportation Builders Association (ARTBA) and the U.S. Conference of Mayors.

At the May 29, 2020 Board of Directors meeting, Director Alan Wapner inquired if there were opportunities for Metrolink to reduce insurance-related costs. At the Board’s direction, Metrolink staff have inquired if such opportunities exist. Staff will continue to explore opportunities with Congress, the Administration and relevant trade associations (the Association of American Railroads and the American Public Transportation Association) to see if best-practices or new opportunities exist.

Prepared by: Jeffrey Dunn, Director, Government and Community Relations

Approved by: Todd McIntyre, Chief Strategy Officer

Attachment(s)

Attachment A - July Legislative Matrix

Appendix A: Legislative Matrix

Bill Number Action Description Assembly Bill 664 (Cooper, Bonta & Watch Metrolink Board of Directors adopted a WATCH Gonzalez): The bill would create a position at the June 26 Board meeting. The bill is conclusive presumption that an injury pending referral to the Senate Labor, Public related to COVID-19 for certain Employment and Retirement Committee. employees arose through employment and qualifies the injury under the workers’ compensation program. Assembly Bill 2011 (Holden) & Senate Oppose Metrolink Board of Directors adopted an OPPOSE Bill 1390 (Portantino): These bills position on AB 2011 and SB 1390 at the April 24 would create a West San Bernardino Board meeting. The bills are pending first referral County Rail Construction Authority for to the Senate and Assembly Transportation purposes of awarding and overseeing Committees. all design and construction contracts for completion of an extension of the Metro Gold Line light rail project to the Ontario International Airport. Assembly Bill 2012 (Chu), Assembly Work Metrolink Board of Directors adopted a WORK Bill 1350 (Gonzalez) and Assembly Bill with WITH AUTHOR position on AB 2012, AB 1350 and 2176 (Holden): These bills would Author AB 2176 at the April 24 Board meeting. AB 1350 condition eligibility of certain state was substantially amended in the Senate on June funding sources on providing free 17, 2020 to include a different policy proposal. transit passes to seniors, youth and AB 2012 and AB 2176 are pending referral to the students. Assembly Transportation Committee, AB 2176 is also referred to the Assembly Higher Education Committee.

76 ITEM 12.C

ITEM ID: 2020-50-

TRANSMITTAL DATE: July 2, 2020

MEETING DATE: September 25, 2020

TO: Board of Directors

FROM: Stephanie Wiggins, Chief Executive Officer

SUBJECT: Contract No. L175-20 - Federal Legislative Representation Services - Recommendation to Award - Chambers, Conlon & Hartwell, LLC, Kadesh & Associates, Potomac Partners DC (PPDC)

Issue

Recommendation

EXECUTIVE COMMITTEE RECOMMENDED (5-0) that the Board authorize the Chief Executive Officer to:

1. Award Contract No. L175-20, Federal Legislative Representation Services, subject to resolution of any protest timely filed, to a bench of qualified firms as listed below: L175A-20 – Chambers, Conlon & Hartwell, LLC L175B-20 – Kadesh & Associates L175C-20 – Potomac Partners DC (PPDC) 2. Approve a not-to-exceed contract funding authorization amount of $720,000 for the base term for the Bench advocacy services. The term of each contract shall be for one two- year base, with two two-year options that may be exercised at the sole discretion of the Authority.

77 Strategic Goal Alignment

This report aligns with the strategic goal to maintain fiscal sustainability by providing representation services that encourage federal funding and support for the Authority’s priorities.

Background

There are legislative, regulatory and funding decisions in our nation’s capital that impact the Authority. These actions are made in a dynamic political environment. Having legislative representation and regulatory support in place is crucial for the Authority to successfully obtain its fair share of funding, secure support and counter legislative or regulatory policies that could have an adverse impact.

The Authority’s advocacy team must be able to facilitate, develop and maintain the Authority’s relationships with delegation offices, as well as leadership in Congress and federal regulatory agencies.

The Authority currently contracts for federal legislative representation services and regulatory services under Contract No. L167C-17 with Chambers, Conlon & Hartwell, LLC, Contract No. L167B-17 with Kadesh & Associates, LLC, and Contract No. L167A-17 with Potomac Partners DC. These contracts will expire on December 31, 2020.

Discussion

On March 27, 2020, the Board approved the evaluation criteria for Request for Proposals (RFP) No. L175-20 outlined below:

Evaluation Criteria Weight Firm’s Qualifications 30% Understanding and Approach to Service Delivery 30% Project Management & Project Team 20% Interview 10% Technical Subtotal 90% Price 10% Total 100%

The Authority issued the RFP on April 20, 2020. Nineteen firms downloaded the RFP, and the Authority received four proposals by the deadline of May 11, 2020 from the below firms:

Firm Name Chambers, Conlon & Hartwell LLC Kadesh & Associates Potomac Partners DC LLC Squire Patton Boggs (US) LLP

A Technical Evaluation Committee evaluated the technical proposals of all four firms. Three firms met the minimum technical score of 56 points (70%) on the written proposals and were invited to participate in an interview on May 29, 2020. All three firms passed the technical score of 63 points (70%) including written proposal and interview and proceeded to the cost evaluation.

The final total scores are below:

Firm Name Technical Score Price Score Total Score Chambers, Conlon & Hartwell LLC 67.7 10.0 77.7 Kadesh & Associates 70.3 10.0 80.3 Potomac Partners DC LLC 71.3 10.0 81.3

Based on the technical and price proposal evaluation, it is recommended that Chambers, Conlon & Hartwell, LLC, Kadesh & Associates, Potomac Partners DC (PPDC) be included in bench Contract No. L175-20.

Disadvantaged Business Enterprise (DBE) Requirement

This procurement is not federally funded and therefore the DBE Program does not apply.

The Byrd Amendment, 31 U.S.C. 1352, (the "Act" or "Byrd Amendment"), prohibits using Federal funds for lobbying activities.

79 Budget Impact

Alternatives Considered

The Board may reject the proposed recommendation to award and direct staff to issue a new solicitation for Federal Legislative Representation Services. However, this alternative is not recommended, as the current contracts will expire on December 31, 2020.

Next Steps

If the Board approves the awards to the recommended bench of firms, staff will execute contracts with the firms and issue notices to proceed soon after.

Prepared by: Jeffrey Dunn, Director, Government and Community Relations

Armine Menemshyan, Senior Contract and Compliance Administrator

Bao Huynh, Director, Contracts, Procurement, and Materials Management

Approved by: Todd McIntyre, Chief Strategy Officer

80 ITEM 12.D

ITEM ID: 2020-60-

TRANSMITTAL DATE: July 2, 2020

MEETING DATE: September 25, 2020

TO: Board of Directors

FROM: Stephanie Wiggins, Chief Executive Officer

SUBJECT: Contract No. L176-20 - State Legislative Representation Services - Recommendation to Award - Shaw Yoder Antwih Schmelzer & Lange

Issue

The Authority requires an advocacy team to provide State Legislative Representation Services.

Recommendation

Strategic Goal Alignment

This report aligns with the strategic goal to maintain fiscal sustainability by providing representation services that encourage state funding and support for the Authority's priorities.

Background

81 There are legislative, regulatory and funding decisions in the California capitol that impact the Authority. These actions occur in a dynamic ever-changing environment. Having legislative representation and regulatory support in place is crucial for the Authority to successfully obtain its fair share of funding, secure support and counter legislative or regulatory policies that could have an adverse impact.

The Authority’s advocacy team must be able to facilitate, develop and maintain the Authority’s relationships with delegation offices, as well as leadership in the Legislature and state regulatory agencies.

The state legislative representation services Contract No. L166-15 with Shaw, Yoder, Antwih, Inc. will expire on December 31, 2020.

Discussion

On March 27, 2020, the Board approved the evaluation criteria for Request for Proposals (RFP) No. L176-20 outlined below:

Evaluation Criteria Weight Qualifications of the Firm 30% Understanding and Approach to Service Delivery 30% Project Management & Project Team 20% Interview 10% Technical Subtotal 90% Price 10% Total 100%

The Authority issued the RFP on May 19, 2020. Eleven firms downloaded the RFP, and the Authority received only one proposal by the deadline of June 12, 2020 from Shaw Yoder Antwih Schmelzer & Lange. Staff contacted all the firms that downloaded the RFP but did not submit a proposal to determine why a single proposal was received. From the answers received, some saw conflicts of interest with current clients they represent, and some had other competing business priorities. Additionally, Smith, Watts, and Company LLC, one of the prospective proposers who downloaded the RFP document, teamed up with Shaw Yoder Antwih Schmelzer & Lange as a subcontractor.

The single responsive proposal from Shaw Yoder Antwih Schmelzer & Lange was reviewed for technical qualifications. The firm has demonstrated the capabilities, expertise, and

82 adequate resources to satisfactorily provide State Legislative Representation services to the Authority during the base term and option period for the contract. Despite only one responsive proposal, staff has determined that there was no barrier to competition with the procurement and affirms this was a fair and open competitive process. Furthermore, it has determined that the proposer’s prices are fair and reasonable. Therefore, a “single-proposal” award to Shaw Yoder Antwih Schmelzer & Lange is appropriate.

Therefore, it is recommended that the Board authorize the Chief Executive Officer to award Contract No. L176-20 for State Legislative Representation Services to the single responsive and responsible proposer, Shaw Yoder Antwih Schmelzer & Lange, in an amount not-to- exceed $240,000 over the two-year base period of the Contract.

Disadvantaged Business Enterprise (DBE) Requirement

This procurement is not federally funded and therefore the DBE Program does not apply.

The Byrd Amendment, 31 U.S.C. '1352, (the "Act" or "Byrd Amendment"), prohibits using Federal funds for lobbying activities.

Budget Impact

Alternatives Considered

Staff considered the option to reissue the RFP . However, staff reviewed the scope of services and solicitation and confirmed that there are no requirements that unduly restricted competition. Therefore, this option is not recommended, as it would most likely result in the same outcome and the current contract will expire on December 31, 2020.

Next Steps

83 If the Board approves the award to the recommended firm, staff will execute the contract with the firm and issue notice to proceed soon after.

Prepared by: Jeffrey Dunn, Director, Government and Community Relations

Armine Menemshyan, Senior Contract and Compliance Administrator

Bao Huynh, Director, Contracts, Procurement, and Materials Management

Approved by: Todd McIntyre, Chief Strategy Officer

84 ITEM 12.E

ITEM ID: 2020-61-

TRANSMITTAL DATE: July 2, 2020

MEETING DATE: September 25, 2020

TO: Board of Directors

FROM: Stephanie Wiggins, Chief Executive Officer

SUBJECT: Updates to the Human Resources Policies and Procedures Manual

Issue

The current HR policy does not allow for compensatory time off for non-exempt employees and updates are needed to implement and ensure compliance with the Fair Labor Standards Act.

Recommendation

EXECUTIVE COMMITTEE RECOMMENDED (5-0) that the Board approve updates to:

1. HR Policy No. 2.0, Wage and Salary Administration – Overtime (Attachment A); and 2. HR Policy No. 3.0, Work Schedules and Hours – Hours of Work, Work Schedules, and Paydays (Attachment A).

Strategic Goal Alignment

This report aligns with the strategic goal to improve organizational efficiency. Staff’s recommendations for updates to the HR policies contribute to this goal by ensuring that policies are clear, fair, and consistent with current laws, regulations and best practices.

Background

At the April 8, 2011 Board meeting, the Chief Executive Officer (CEO) was authorized to

85 review and approve future changes to the HR Policies and Procedures Manual, with the exception of policies with significant legal, contractual and/or financial implications, which would be submitted to the Board of Directors for approval. Additionally, the Board approved the Executive Management and Audit Committee’s request that a quarterly update be provided on any changes to the HR Policies and Procedures Manual made by the CEO under the delegated authority.

Discussion

Staff is requesting approval of updates to:

1. HR Policy No. 2.0, Wage and Salary Administration – Overtime 2. HR Policy No. 3.0, Work Schedules and Hours – Hours of Work, Work Schedules, and Paydays

Descriptions of the recommended changes are shown below, and copies of the redlined policies are provided in Attachment A; the clean versions of the policies are provided in Attachment B for reference.

HR Policy No. 2.0, Wage and Salary Administration – Overtime

Adds language that allows non-exempt employees to earn compensatory time off.

HR Policy No. 3.0, Work Schedules and Hours – Hours of Work, Work Schedules, and Paydays

Updates and simplifies language regarding travel time, ensuring compliance with the Fair Labor Standards Act (FLSA) Removes language regarding rest and meal periods for employees who protect the railroad because these duties are no longer performed by Authority employees Adds “flex time” provisions to be consistent with the language in HR Policy No. 4.0, Paid Time Off, which allows employees to make up lost work time for partial day absences, without using PTO leave to cover the time off Updates language to state that employees can take a minimum meal period of 30 minutes

Separates procedures from policy language

86 Budget Impact

There is no budgetary impact as a result of this report.

Prepared by: Roxanne Randolph, Interim Chief, Human Resources

Approved by: Roxanne Randolph, Interim Chief, Human Resources

Attachment(s)

Attachment A - 2.0 Wage and Salary Administration - Overtime (Redlined).pdf Attachment A - 3.0 Work Schedules and Hours - Hours of Work (Redlined).pdf Attachment B - 2.0 Wage and Salary Administration - Overtime (Clean).pdf Attachment B - 3.0 Work Schedules and Hours - Hours of Work (Clean).pdf

87 Attachment A

Southern California Regional Rail Authority Human Resource Policies and Procedures Manual

TITLE: Wage and Salary Administration-Overtime NO. HR-2.0

ORIGINATING UNIT: Human Resources

EFFECTIVE DATE: October 8, 1999 REVISED: November 16, 2012

PURPOSE

To define and explain the overtime requirements of the SCRRA and Fair Labor Standards Act (FLSA).

APPLICATION

This policy applies to all SCRRA employees.

POLICY STATEMENT

All positions in the agency will be classified as either exempt or non-exempt in compliance with the FLSA and for pay administration purposes. This policy shall be interpreted and applied to be consistent with the federal FLSA and its supporting regulations. The SCRRA does not grant compensatory time in lieu of overtime.

1.0 PROCEDURESPOLICY

1.1 Prior Approval Required.

Overtime-eligibleNon-exempt employees are not permitted to work overtime except as the department director employee’s manager authorizes or directs. Overtime-eligible employees directed to work overtime must do so. Working overtime without advance approval is grounds for discipline.

1.2 Overtime.

Overtime is defined as all hours actually worked by an overtime-eligible employee in excess of forty (40) hours in a workweek. Overtime will be

88 Attachment A

Wage and Salary Administration- Overtime; HR 2.0 Page 2

compensated at one and one-half (1.5) times the Fair Labor Standards Act regular rate of pay.

Overtime will be paid based upon calculation of actual hours worked. An employee must actually work in excess of 40 hours to be compensated at the overtime rate (e.g., if an employee works 34 hours and uses 8 hours of PTO, an employee will be paid at the regular hourly rate for 42 hours). Time off with holiday pay will count as hours worked.

1.3 Compensatory Time Off

An FLSA non-exempt employee may opt to accrue compensatory time-off (CTO) in lieu of cash payment for overtime worked if his or her supervisor agrees prior to overtime work being performed.

a. Accrual Rate: CTO accrues at the rate of 1.5 hours for each hour, or fraction thereof, worked after 40 hours of actual work within the employee's designated work week. Time in paid leave status does not count toward CTO.

b. Period of Time To Use Accrued CTO: Once accrued, an employee must use the CTO within ninety (90) calendar days. If the employee fails to use accrued CTO within ninety (90) calendar days, it will be automatically cashed out.

c. Employee Request to Use CTO: The Authority will grant an employee’s request to use accumulated CTO provided that: i. the department can accommodate the use of CTO on the day requested without undue disruption to department operations; and ii. the employee makes the request in writing to the supervisor no later than two (2) work days prior to the date requested. If the employee does not provide two (2) work days’ notice, or if the department cannot accommodate the time off without undue disruption, the Authority will provide the employee the opportunity to cash out the amount of CTO requested at the end of the current pay period.

d. Authority Cash Out: The Authority reserves the right to cash out accumulated CTO at any time.

e. Value of CTO Cash Out: During employment, CTO is cashed out at the employee’s current FLSA regular rate of pay (including all FLSA-applicable salary differentials and special pays). Employees separating from Authority service shall be compensated for all accrued, unused compensatory hours at their current FLSA regular rate of pay, or their average FLSA regular rate for the prior three years, whichever is higher.

89 Attachment A

Wage and Salary Administration- Overtime; HR 2.0 Page 3

1.4 Classification Status

All job classifications and positions are periodically reviewed to determine the status (exempt or non-exempt) of each position as covered by the FLSA. A request for a review of the duties of the position or questions about the status of any position may be made to the Director ofChief, HR.

2.0 DEFINITION OF TERMS

Active Pay Status. The conditions under which an employee is eligible to receive pay, and includes, but is not limited to PTO.

Actual Hours Worked. The period of time when an employee is actively at work and is eligible to receive pay, including holiday pay, and does not include Paid Time Off (PTO), Bereavement Leave, paid Administrative Leave or any other time off when the employee may be eligible to receive pay.

Exempt. An employee who meets one or more of the duties test exemptions from overtime under the FLSA (e.g. executive, administrative, professional employee) and who is paid on a salary basis, meaning that he or she is compensated in a predetermined amount that is not reduced, regardless of the quality or quantity of work actually performed, except as required by the SCRRA’s principles of public accountability for partial-day absences, is FLSA exempt. An FLSA-exempt employee is not entitled to overtime compensation.

Holiday. Paid time off on a legal holiday designated by the SCRRA.

Non-Exempt. Non-exempt employees are covered by the provisions of the Fair Labor Standards Act (FLSA). A non-exempt employee is entitled to FLSA overtime, regardless of whether paid on a salary or hourly basis.

Overtime. Overtime is defined as all hours actually worked by an overtime-eligible employee in excess of 40 hours in the designateda 7-day workweek period. Only actual hours worked will be counted toward the 40-hour threshold for purposes of calculating FLSA overtime pay.

Overtime Pay refers to additional pay earned by non-exempt employees for working more than 40 hours in a workweek.

Workday. For employees on a 40-hour workweek, the workday is defined as eight (8) hours of authorized work five (5) days a week with a one (1) hour unpaid lunch break within a schedule as defined by the supervisor based on the work requirements of the department. The standard hours of work are from 8:00 a.m. to 5:00 p.m.

90 Attachment A

Wage and Salary Administration- Overtime; HR 2.0 Page 4

Employees in some of the Operating Departments may work nine (9), ten (10) or a twelve (12) hour shift schedule due to business needs. Refer to other policies in this Manual for more information.

3.0 RESPONSIBILITIES Not Applicable.

4.0 REFERENCES

The Fair Labor Standards Act (FLSA), 29 U.S. C. 201 et seq. The Code of Federal Regulations

5.0 ATTACHMENTS Not Applicable.

6.0 PROCEDURAL POLICY HISTORY 4/13/01 Clarifying language added to extend acting pay; adds language regarding full-time exempt employees transferring to part-time exempt position 11/12/04 Clarifying language by adding V.E. and V. F. 11/16/12 Removes language regarding employees on a 38-hour workweek. Adds ability for non-exempt employees to earn compensatory time off.

Director of Chief, Human Resources Legal Counsel Chief Executive Officer

91 Attachment A

Southern California Regional Rail Authority Human Resource Policies and Procedures Manual

TITLE: Work Schedules and Hours- NO. HR-3.0 Hours of Work, Work Schedules, and Paydays

ORIGINATING UNIT: Human Resource

EFFECTIVE DATE: October 8, 1999 REVISED: November 16, 2012

PURPOSE

To establish the hours of employment in the SCRRA’s basic workday and workweek; to establish pay periods and paydays to administer the payment of wages, salaries and overtime pay; to comply with the requirements of the Federal Fair Labor Standards Act (FLSA) and supporting regulations; and to incur liability for overtime pay only when reasonably necessary.

APPLICATION

This policy applies to all SCRRA employees. (Refer to HR Policy 1.1 for types of employment status.)

POLICY STATEMENT

Full-Time Regular employees are required to work five (5) consecutive days in each workweek unless otherwise approved by the employee’s supervisormanager. The SCRRA’s standard workweek for most full-time employees is 40 hours. Due to business or operational requirements, alternative workweeks may be established for an employee or group of employees on a fixed basis.

1.0 PROCEDUREPOLICY

1.1 Workweek

The Fair Labor Standards Act defines a workweek as a regularly recurring period of 168 hours in seven consecutive 24-hour periods. The workweek need not coincide with the calendar week. The official agency workweek begins at 12:00 a.m. each Sunday and ends at 11:59 p.m. on Saturday, except for employees on a 3/12 or 9/80 work schedule.

For employees working 12-hour shifts, the workweek will include three 12-hour, shifts plus one 8-hour shift worked every other week. For employees on this

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schedule, the employee’s designated FLSA work week (168 hours in length) shall begin exactly four hours after the start of his/her 8-hour shift on the day of the week that corresponds with the employee’s alternating regular day off.

Employees working a 9/80 schedule will have a regular day off every other week as determined by the Agency. either every other Monday, Wednesday or Friday off. For employees working a 9/80 work schedule, each employee’s designated FLSA work week (168 hours in length) shall begin exactly four hours after the start of his/her eight hour shift on the day of the week that corresponds with the employee’s alternating regular day off.

1.2 Workday

For employees on a 40 hour workweek, the standard workday is defined as eight (8) hours of authorized work five (5) days a week with a one (1) hour lunch break within a schedule as defined by the supervisor manager based on the work requirements of the department. The standard hours of work are from 8:00 a.m. to 5:00 p.m.

For employees on a 9/80 work schedule, employees will work eight 9-hour days, one 8-hour day, and one regular day off in a 2-week period.

For employees on a 4/10 work schedule, employees will work four 10-hour shifts per workweek.

For employees working 12-hour shifts, employees will work three 12-hour, shifts plus one 8-hour shift worked every other week.

1.3 Exempt Employees

1.3.1 Exempt from Overtime

Overtime will not be paid to exempt employees consistent with the Overtime regulations of the Fair Labor Standards Act and as stated elsewhere in this Manual. Exempt employees are required to work all five days in a workweek (with the exception of those employees taking an Alternative Work Schedule day off) or use PTO when taking time off to attend to personal business, vacation or for medical appointments, illnesses or as otherwise described in Policy 4.0.

1.3.2 Flex Time for Exempt Employees

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absences on the same day or another day within the same pay period with prior approval from their manager.

1.4 Non-Exempt Employees.

1.4.1 Rest and Meal Periods.

Non-exempt employees are authorized for rest breaks. A rest break is paid time no longer than fifteen (15) minutes in duration for each four (4) hour period of service. The rest period shall be taken at a time designated by the employee’s supervisor.

A sixty (60) minute non-compensated meal period shall be provided all full-time employees. This meal period should be taken at the approximate mid-point of the shift, unless department rules indicate otherwise. A non-compensated meal period of at least 30 minutes but no more than 60 minutes shall be provided to all full- time non-exempt employees.

Rest breaks and lunch meal periods may not be taken during the first or last half- hour of the workday and may not be combined to shorten the workday or to extend the meal period.

Field employees who are required to protect the railroad and as a result, may not be off duty during some lunch periods may waive the lunch hour requirement by completing the appropriate waiver form and submitting the form with the timesheet. Supervisors will authorize this waiver as necessary with approval from Human Resources. An employee who waives and therefore works during a meal period will be compensated at his or her base regular rate of pay or overtime as applicable.

1.5 Flex Time for Non-Exempt Employees

Employees may make up lost work time for partial day absences, without using PTO leave to cover the time off, subject to prior approval of an employee’s manager. Non-exempt employees can make up lost work time for partial day absences on the same day or another day within the same designated 7-day work period, with prior approval from their manager. Flex time for non-exempt employees will not result in the employee working more than forty (40) hours in a designated 7-day work period.

1.6 Paydays.

Employees are paid bi-weekly. At the beginning of each calendar year, a calendar will be prepared and distributed to employees, designating pay periods, paydays

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and holidays. Pay dates fall on alternating Fridays as scheduled by the Finance Department.

1.6 Travel Time for Non-Exempt Employees

Time spent in transit by non-exempt employees will be treated in accordance with FLSA requirements for the sake of compensation.

1.6.1 Commute Time

Travel time to and from work is commute time, which and is not compensable. However, even if the employee is asked required to report to different a work location that is different from the employee’s regular work location and the amount of time to travel to the new location is longer than the normal commute time, then the employee will be compensated for the difference in time between the employee’s normal commute and the new location. In addition, if the Authority requires the employee to meet at a designated location and use the Authority’s transportation to and from the work site, then the travel time from the designated location to the work site is compensable. s on different days. Travel from home to the first work site of the day or from the last work site of the day to home is considered commute time. In addition, travel from home to a work site other than an employee’s regular work location on an emergency basis (such as a call-out in the middle of the night) will not be compensated unless the employee must travel a substantial distance (i.e., significantly more than the normal home to work commute) to address the emergency.

1.6.2 Travel During the Workday

Travel during the workday, after the employee has reported to work, is hours worked for the SCRRA, unless it is in connection with a bona fide meal break. However, travel from the employee’s last work location to home is not compensable. Supervisors should not require employees who will be traveling during the work day to report to their normal work site at the start or the end of their shift unless it is truly necessary for the employee to report to such location.

1.6.3 Special One Day Assignment Out of Town or Overnight Travel

Except for time spent eating meals or engaging in personal pursuits (e.g. sleeping), time spent traveling to a location where the employee will be staying overnight is considered hours worked. The hours worked includes time spent driving or as a passenger on an airplane, train, bus, taxi cab or car, or other mode of transportation, in traveling to and from the out of town location. In addition, time spent waiting to purchase a ticket, check baggage, or get on board a mode of transportation is compensable. Overnight travel is considered hours worked by the employee if it occurs:

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1. During regular work hours; or 2. On an off day during the employee’s normal work hours; or 3. Outside of work hours, if the employee has to drive to the location.

If the employee travels on public transportation or as a passenger in an automobile, the time is non-compensable. Supervisors should schedule overnight travel for employees on public transportation outside of their normal work hours if possible. If the employee is offered public transportation for travel outside of normal work hours and declines the offer, the travel time is non-compensable.

1.6.4 Special One Day Assignment Outside the SCRRA

If an employee is required to travel out of the SCRRA for a special assignment, and the time spent traveling is significantly longer than the employee’s normal commute, a portion of the travel time should be counted as hours worked. If the employee is driving to the location, only the time in excess of the employee’s normal commute shall be considered as hours worked. If the employee is taking public transportation to the location, the travel time shall be counted as hours worked, except for travel between the employee’s home and the public transportation facility, such as an airport or train station.

Travel to attend a training program that is a regular and contemplated part of an employee’s position shall not be considered a special assignment.

2.0 DEFINITION OF TERMS Not Applicable.

3.0 RESPONSIBILITIES Managers are responsible for the proper and consistent scheduling of work hours and work schedules for employees reporting to them.

4.0 REFERENCES Not Applicable.

5.0 ATTACHMENTS Not Applicable.

6.0 PROCEDURAL POLICY HISTORY

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4/13/01 Adds option for some Operations Department employees to work a 40 hour work week and a 4/10 alternative work schedule; adds requirement to take a minimum lunch period of ½ hour which excludes taking lunch period at beginning or end of work day; clarifies the .5 TOWP charge for exempt employees who elect an AWS schedule; adds statement on overtime requirements for non-exempt employees on AWS schedule 11/12/04 Corrects for inconsistent practices 4/8/11 Amended 10/14/11 Amended 11/16/12 Removed language regarding employees on a 38 hour workweek. Updated travel time requirements; removed language regarding rest and meal periods for employees who protect the railroad; added flex time provisions; updated language to state that employees can take a minimum meal period of 30 minutes; separated procedures from policy language.

Director ofChief, Human Resources Legal Counsel Chief Executive Officer

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PROCEDURES

Rest and Meal Periods

The rest period shall be taken at a time designated by the employee’s manager.

Pay Days

At the beginning of each calendar year, a calendar will be prepared and distributed to employees, designating pay periods, paydays and holidays.

Travel During the Workday

Managers should not require employees who will be traveling during the work day to report to their normal work site at the start or the end of their shift unless it is truly necessary for the employee to report to such location.

98 Attachment B

Southern California Regional Rail Authority Human Resource Policies and Procedures Manual

TITLE: Wage and Salary Administration-Overtime NO. HR-2.0

ORIGINATING UNIT: Human Resources

EFFECTIVE DATE: October 8, 1999 REVISED:

PURPOSE

To define and explain the overtime requirements of the SCRRA and Fair Labor Standards Act (FLSA).

APPLICATION

This policy applies to all SCRRA employees.

POLICY STATEMENT

1.0 POLICY

1.1 Prior Approval Required.

Non-exempt employees are not permitted to work overtime except as the employee’s manager authorizes or directs. Overtime-eligible employees directed to work overtime must do so. Working overtime without advance approval is grounds for discipline.

1.2 Overtime.

Overtime is defined as all hours actually worked by an overtime-eligible employee in excess of forty (40) hours in a workweek. Overtime will be compensated at one and one-half (1.5) times the Fair Labor Standards Act regular rate of pay.

Overtime will be paid based upon calculation of actual hours worked. An employee must actually work in excess of 40 hours to be compensated at the

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Wage and Salary Administration- Overtime; HR 2.0 Page 2

overtime rate (e.g., if an employee works 34 hours and uses 8 hours of PTO, an employee will be paid at the regular hourly rate for 42 hours). Time off with holiday pay will count as hours worked.

1.3 Compensatory Time Off

An FLSA non-exempt employee may opt to accrue compensatory time-off (CTO) in lieu of cash payment for overtime worked if his or her supervisor agrees prior to overtime work being performed.

b. Period of Time to Use Accrued CTO: Once accrued, an employee must use the CTO within ninety (90) calendar days. If the employee fails to use accrued CTO within ninety (90) calendar days, it will be automatically cashed out

c. Employee Request to Use CTO: The Authority will grant an employee’s request to use accumulated CTO provided that:

i. the department can accommodate the use of CTO on the day requested without undue disruption to department operations; and ii. the employee makes the request in writing to the supervisor no later than two (2) work days prior to the date requested. If the employee does not provide two (2) work days’ notice, or if the department cannot accommodate the time off without undue disruption, the Authority will provide the employee the opportunity to cash out the amount of CTO requested at the end of the current pay period.

d. Authority Cash Out: The Authority reserves the right to cash out accumulated CTO at any time.

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1.4 Classification Status

2.0 DEFINITION OF TERMS

Active Pay Status. The conditions under which an employee is eligible to receive pay, and includes, but is not limited to PTO.

Holiday. Paid time off on a legal holiday designated by the SCRRA.

Overtime. Overtime is defined as all hours actually worked by an overtime-eligible employee in excess of 40 hours in the designated 7-day work period. Only actual hours worked will be counted toward the 40-hour threshold for purposes of calculating FLSA overtime pay.

Overtime Pay refers to additional pay earned by non-exempt employees for working more than 40 hours in a workweek.

Employees may work nine (9), ten (10) or twelve (12) hour shift schedule due to business needs. Refer to other policies in this Manual for more information.

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Wage and Salary Administration- Overtime; HR 2.0 Page 4

3.0 RESPONSIBILITIES Not Applicable.

4.0 REFERENCES

The Fair Labor Standards Act (FLSA), 29 U.S. C. 201 et seq. The Code of Federal Regulations

5.0 ATTACHMENTS Not Applicable.

6.0 POLICY HISTORY 4/13/01 Clarifying language added to extend acting pay; adds language regarding full-time exempt employees transferring to part-time exempt position 11/12/04 Clarifying language by adding V.E. and V. F. 11/16/12 Removes language regarding employees on a 38-hour workweek. Adds ability for non-exempt employees to earn compensatory time off.

Chief, Human Resources Legal Counsel Chief Executive Officer

102 Attachment B

Southern California Regional Rail Authority Human Resource Policies and Procedures Manual

TITLE: Work Schedules and Hours- NO. HR-3.0 Hours of Work, Work Schedules, and Paydays

ORIGINATING UNIT: Human Resource

EFFECTIVE DATE: October 8, 1999 REVISED:

PURPOSE

APPLICATION

This policy applies to all SCRRA employees. (Refer to HR Policy 1.1 for types of employment status.)

POLICY STATEMENT

Full-Time Regular employees are required to work five (5) consecutive days in each workweek unless otherwise approved by the employee’s manager. The SCRRA’s standard workweek for most full-time employees is 40 hours. Due to business or operational requirements, alternative workweeks may be established for an employee or group of employees on a fixed basis.

1.0 POLICY

1.1 Workweek

For employees working 12-hour shifts, the workweek will include three 12-hour, shifts plus one 8-hour shift worked every other week. For employees on this schedule, the employee’s designated FLSA work week (168 hours in length) shall

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begin exactly four hours after the start of his/her 8-hour shift on the day of the week that corresponds with the employee’s alternating regular day off.

Employees working a 9/80 schedule will have a regular day off every other week as determined by the Agency. For employees working a 9/80 work schedule, each employee’s designated FLSA work week (168 hours in length) shall begin exactly four hours after the start of his/her eight hour shift on the day of the week that corresponds with the employee’s alternating regular day off.

1.2 Workday

For employees on a 40 hour workweek, the standard workday is defined as eight (8) hours of authorized work five (5) days a week with a one (1) hour lunch break within a schedule as defined by the manager based on the work requirements of the department. The standard hours of work are from 8:00 a.m. to 5:00 p.m.

For employees on a 9/80 work schedule, employees will work eight 9-hour days, one 8-hour day, and one regular day off in a 2-week period.

For employees on a 4/10 work schedule, employees will work four 10-hour shifts per workweek.

For employees working 12-hour shifts, employees will work three 12-hour, shifts plus one 8-hour shift worked every other week.

1.3 Exempt Employees

1.3.1 Exempt from Overtime

1.3.2 Flex Time for Exempt Employees

Employees may make up lost work time for partial day absences, without using PTO leave to cover the time off, subject to prior approval of an employee’s manager. Exempt employees may make up lost work time for partial day absences on the same day or another day within the same pay period with prior approval from their manager.

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1.4 Non-Exempt Employees.

1.4.1 Rest and Meal Periods.

Non-exempt employees are authorized for rest breaks. A rest break is paid time no longer than fifteen (15) minutes in duration for each four (4) hour period of service.

A non-compensated meal period of at least 30 minutes but no more than 60 minutes shall be provided to all full-time non-exempt employees.

Rest breaks and meal periods may not be taken during the first or last half-hour of the workday and may not be combined to shorten the workday or to extend the meal period.

1.5 Flex Time for Non-Exempt Employees

1.6 Paydays.

Employees are paid bi-weekly. Pay dates fall on alternating Fridays as scheduled by the Finance Department.

1.6 Travel Time for Non-Exempt Employees

Time spent in transit by non-exempt employees will be treated in accordance with FLSA requirements for the sake of compensation.

1.6.1 Commute Time

Travel time to and from work is commute time, and is not compensable. However, if the employee is required to report to a work location that is different from the employee’s regular work location and the amount of time to travel to the new location is longer than the normal commute time, then the employee will be compensated for the difference in time between the employee’s normal commute and the new location. In addition, if the Authority requires the employee to meet at a designated location and use the Authority’s transportation to and from the

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work site, then the travel time from the designated location to the work site is compensable.

1.6.2 Travel During the Workday

1.6.3 Special One Day Assignment Out of Town or Overnight Travel

2.0 DEFINITION OF TERMS Not Applicable.

3.0 RESPONSIBILITIES Managers are responsible for the proper and consistent scheduling of work hours and work schedules for employees reporting to them.

4.0 REFERENCES Not Applicable.

5.0 ATTACHMENTS Not Applicable.

6.0 POLICY HISTORY 4/13/01 Adds option for some Operations Department employees to work a 40 hour work week and a 4/10 alternative work schedule; adds requirement to take a minimum lunch period of ½ hour which excludes taking lunch period at beginning or end of work day; clarifies the .5 TOWP charge for exempt employees who elect an AWS schedule; adds statement on overtime requirements for non-exempt employees on AWS schedule 11/12/04 Corrects for inconsistent practices

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4/8/11 Amended 10/14/11 Amended 11/16/12 Removed language regarding employees on a 38 hour workweek. Updated travel time requirements; removed language regarding rest and meal periods for employees who protect the railroad; added flex time provisions; updated language to state that employees can take a minimum meal period of 30 minutes; separated procedures from policy language.

Chief, Human Resources Legal Counsel Chief Executive Officer

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PROCEDURES

Rest and Meal Periods

The rest period shall be taken at a time designated by the employee’s manager.

Pay Days

At the beginning of each calendar year, a calendar will be prepared and distributed to employees, designating pay periods, paydays and holidays.

Travel During the Workday

108 ITEM 12.F

ITEM ID: 2020-75-0

TRANSMITTAL DATE: September 04, 2020

MEETING DATE: September 25, 2020

TO: Board of Directors

FROM: Stephanie Wiggins, Chief Executive Officer

SUBJECT: Contracts No. JO134-21, JO135-21, and JO136-21 - Tie Rehabilitation Services - Recommendation to Award - Transdev Rail, Inc. and RailWorks Track Services

Issue

Recommendation

CONTRACTS, OPERATIONS, MAINTENANCE, AND SAFETY COMMITTEE RECOMMENDED (5-0) the Board authorize the Chief Executive Officer to:

1. Award the following three Job Order Contracts (JOCs) for Track & Tie Rehabilitation Services to the lowest responsive and responsible bidders:

JO134-21- Transdev Rail, Inc. JO135-21- RailWorks Track Services JO136-21- Transdev Rail, Inc.

2. Approve a not-to-exceed contract funding authorization amount of $4,900,000 for each JOC.

Strategic Goal Alignment

109 This report aligns with the strategic goal to ensure a safe operating environment and invest in people and assets by replacing aged and worn rail ties and preventing further deterioration of existing track structures and rail ties.

Background

Work under Contracts No. JO134-21, JO135-21, and JO136-21 will include rehabilitation and replacement of rail, cross ties, crossings, and turnouts on the Orange, Olive, Valley, San Gabriel, Perris Valley, River, and the Ventura Subdivisions. In addition to rehabilitating rail, and crossties, work includes removing and replacing various sized turnouts, grade crossings, undercutting muddy ballast sections, replacing existing fasteners, de-stressing track sections, installing new fasteners, and surfacing and stabilizing track per the Authority’s standards. Work under the contract may be authorized and performed anywhere on the system. Each of the 3 JOC's will be targeted for different areas of the Authority's system, and will be utilized during work windows that are planned in advance with Operations and coordinated with ongoing Capital and 3rd Party projects across the Authority's system.

Job Order Contracts are essentially "on-call contracts," where individual Job Orders are issued by the Authority to support rehabilitation projects as the need arises.

The Authority has awarded several JOCs in the past in accordance with Public Contract Code Section 20128.5, which permits the Authority to enter into individual contracts for repair, remodeling, and other repetitive work. Individual Job Orders must be executed within one year from the Notice to Proceed (NTP), and work under each Job Order must be completed within one year of the execution date. Public Contract Code Section 20128.5 permits the Authority to issue job orders for a cumulative maximum value of $4,900,000.

Discussion

Procurement Approach

1. JO134-21:

The Authority issued Invitation for Bids (IFB) No. JO134-21 on June 2, 2020. The solicitation w as posted on Authority’s e-procurement website, advertised in publications in the five- member counties, and notices were sent directly to firms registered on Authority’s website. Thirty-eight firms downloaded the solicitation and four bids were received on July 9, 2020 as follows:

Bidder Bid Amount Transdev Rail, Inc. $8,942.678.10

Veterans Engineering $8,958,000.00

110 RailWorks Track Services $9,881,684.00 Herzog Contracting $17,053,830.00

2. JO135-21:

The Authority issued IFB No. JO135-21 on July 2, 2020. The solicitation was posted on Authority’s e-procurement website, advertised in publications in the five-member counties, and notices were sent directly to firms registered on Authority’s website. Thirty-seven firms downloaded the solicitation and three bids were received on July 23, 2020 as follows:

Bidder Bid Amount RailWorks Track Services $6,797,002.00 Veterans Engineering $6,860,827.00 Transdev Rail, Inc. $7,887,136.45

3. JO136-21:

The Authority issued IFB No. JO136-21 on July 10, 2020. The solicitation was posted on Authority’s e-procurement website, advertised in publications in the five-member counties, and notices were sent directly to firms registered on Authority’s website. Thirty-three firms downloaded the solicitation and two bids were received on August 3, 2020 as follows:

Bidder Bid Amount Transdev Rail, Inc. $7,487,318.47 RailWorks Track Services $8,554,137.00

Discussion:

Bids were submitted on the basis of typical work, which is a hypothetical estimated work description for a list of representative tasks (bid items) established by the Authority. The unit prices submitted by a bidder establish the pricing that the bidder will be held to when performing work on individual Job Orders on an as-needed basis.

Bids received represent the aggregate of the unit prices required. Work under this contract will be authorized by specific Job Orders. Actual funding commitments for those projects handled through the Job Order process are encumbered on a per project basis at the time the individual Job Order is approved and issued.

The Engineer’s estimates were prepared using data from similar Job Orders that were previously issued by the Authority, and these estimates were used to determine whether the

111 bid prices received were fair and reasonable. Individual Job Orders will only be issued up to the $4,900,000 capacity.

Solicitation No. Engineering Cost Estimate JO134-21 $9,244,270 JO135-21 $5,194,720 JO136-21 $7,307,800

After analysis of the bids received, it was determined that the bid results from: (1) Transdev Rail, Inc for JO134-21, RailWorks Track Services for JO135-21, and Transdev Rail, Inc. for JO136-21 were fair and reasonable. The lowest bid received for JO135-21 is about 30% higher than the Engineer’s Estimate; however, upon further review and analysis the majority of the price differential was due to the mobilization costs being much higher for turnout and crossing replacements due to the cost associated with moving equipment and materials across Metrolink’s large territory. Staff plans on mitigating this cost differential by grouping these scope items together so that no more than one mobilization would be paid for these related scope items per Contract, regardless of where the work is performed on the territory.

Disadvantaged Business Enterprise (DBE) Requirements:

DBE contract goal of 13% was established for these Federally-assisted contracts. Transdev Rail, Inc. and RailWorks Track Services committed to 13% DBE participation.

Budget Impact

Alternatives Considered

The Board may reject all bids received for these three solicitations and direct staff to issue three new IFBs. However, this is not recommend as it would delay critical track and tie rehabilitation projects.

Next Steps

As authorized by California Public Contract Code Section 20128.5, under these JOC contracts, the Authority will issue individual job order tasks on an as-needed basis subject to the maximum contract authorization of $4,900,000 to the lowest and responsible bidders for a

112 one-year term to repair and/or replace track and rail ties or other repetitive work. Compensation for the work will be based on the unit prices reflected in the bids received for JO134-21, JO135-21, and JO136-21.

Prepared by: Aaron Azevedo, Acting Assistant Director, Rehabilitation Tim Quinn, Railroad Civil Engineer II Wai Shong Chan, Contracts and Compliance Administrator Yamil Ramirez Roman, Contract and Compliance Administrator

Approved by: Noelia Rodriguez, Chief of Staff Justin Fornelli, Chief, Program Delivery

113 ITEM 12.G

ITEM ID: 2020-100-0

TRANSMITTAL DATE: September 4, 2020

MEETING DATE: September 25, 2020

TO: Board of Directors

FROM: Stephanie Wiggins, Chief Executive Officer

SUBJECT: Contract No. EP203R-21 - Maintenance of Way Equipment - Recommendation to Award - Harsco Metro Rail, LLC

Issue

The Authority requires a new Railroad Production and Switch Tamper and a new Dynamic Track Stabilizer to support field work along the Authority’s right-of-way.

Recommendation

Strategic Goal Alignment

This action aligns with the strategic goal to invest in people and assets by ensuring proper maintenance of the Authority’s right-of-way.

Background

Railroad Production and Switch Tamper

A Railroad Production and Switch Tamper is necessary to replace 22-year-old, Tier 0 equipment that has reached its useful life and is beyond repair. The new maintenance of way

114 equipment will be powered by Tier 4 powertrain and will be used for track maintenance throughout the Authority's system including yards, tunnels, main tracks and through station platforms and high degree super-elevated curves. Dynamic Track Stabilizer (DTS)

A DTS is necessary to replace a 10-year-old, Tier 0 equipment that has reached its useful life and requires major computer system upgrade. The new maintenance of way equipment will be powered by Tier 4 powertrain and will be used for track maintenance throughout the Authority's system, including yards, tunnels, main tracks and through station platforms and high degree super-elevated curves.

On June 28, 2019, the Authority received an Low Carbon Transit Operations Program (LCTOP) Grant in the amount of $3,143,244 to replace three Tier 0 MOW rail support vehicles with new Tier 4 equipment. The Grant will fund majority of this project with the balance paid from rehabilitation funds.

Discussion

On October 3, 2019 the Authority issued IFB No. EP203-20; however, the solicitation was cancelled due to bids received being out of compliance with the DBE goal. During a second DBE review it was determined that the majority of project funding would be spent on the purchase of equipment and that subcontracting opportunities were found to be minimal leading to a Race-Neutral determination. The DBE goal was reevaluated and currently is Race-Neutral with a 0% DBE goal.

Due to a backlog in procurement, on August 12, 2020, an Invitation for Bids (IFB) was issued under EP203R-21. The solicitation was posted on the Authority’s online portal, PlanetBids, and notices were sent directly to over seven hundred registered firms. The Authority also published the IFB in publications in the five-member counties. Twenty-one (21) prime, subcontractor, and supply firms downloaded the solicitation.

Two bids were received on the bid due date of August 27, 2020 from:

Vendor Bid Amount Harsco Metro Rail LLC $3,453,397.00 Plasser American $5,965,750.18

The Engineer’s estimate prepared prior to receipt of bids is $3,467,194.46.

The Authority has determined that the bid received from Harsco Metro Rail, LLC is fair and reasonable. The Railroad Production and Switch Tamper and DTS that will be purchased from Harsco Metro Rail, LLC meets the Authority’s technical specifications and needs.

Therefore, staff recommends the Board approve the CEO to execute a purchase order in the amount of $3,453,397.00 with Harsco Metro Rail LLC. This purchase will be funded in part by a grant from LCTOP totaling $3,143,244.

115 Budget Impact

The amounts for which contract authority is requested are included in the Adopted Capital Budgets for FY2019-20 ($3,453,397.00).

Alternatives Considered

The Board may reject the proposed recommendation to award and direct staff to issue a new Invitations for Bids (IFB) to provide a new Railroad Production and Switch Tamper and a new Dynamic Track Stabilizer. However, given that the Authority has issued this solicitation twice for this equipment, if a third IFB is required, it is likely we will lose the $3,143,244 in grant funding.

Next Steps

If the Board approves the award, staff will execute a purchase order with Harsco Metro Rail LLC to purchase the two (2) MOW equipment.

Prepared by: Tina Kinney, Contract Administrator Eric Poghosyan, Senior Manager, Facilities & Fleet Maintenance

Approved by: Eric Hosey, Chief Operations Officer Noelia Rodriguez, Chief of Staff

116 ITEM 12.H

ITEM ID: 2020-103-0

TRANSMITTAL DATE: September 4, 2020

MEETING DATE: September 25, 2020

TO: Board of Directors

FROM: Stephanie Wiggins, Chief Executive Officer

SUBJECT: Contract No. SP514-20 - Strategic Business Plan - Status Update and Recommendation of Amendment - InfraStrategies LLC

Issue

Recommendation

CONTRACTS, OPERATIONS, MAINTENANCE, AND SAFETY COMMITTEE RECOMMENDED (5-0) the Board authorize the Chief Executive Officer to:

1. Execute an amendment to Contract No. SP514-20 with Infrastrategies LLC for additional effort to complete the Strategic Business Plan, conduct additional stakeholder engagement, and complete a supplementary State of Good Repair Financial Plan; and 2. Increase the contract funding authority by $334,120, from $973,000 to $1,307,120, in order to complete the Strategic Business Plan and new State of Good Repair Financial Plan.

117 Strategic Goal Alignment

This report aligns with the strategic goals to invest in people and assets, retain and grow ridership, maintain fiscal sustainability, and increase regional mobility by developing a Strategic Business Plan that is responsive to the challenges of today while providing a cohesive roadmap for the Authority’s future.

Background

A Strategic Business Plan is being undertaken to advance several goals for the Metrolink system and organization:

Align Mission, Vision, and Commitments; Optimize and improve system performance; Grow ridership to support regional goals; Gain regional consensus on operational and capital needs; Identify opportunities to benefit and engage new and existing riders; Structure capital investments that deliver near-term benefits to the system; and Address post-COVID-19 recovery

The Strategic Business Plan will articulate consensus-based priorities for optimization of business practices and policies, for investment in rehabilitation and state of good repair, and for expansion of services and infrastructure. The Strategic Business Plan document will be combined with a Short-Range Transit Plan and will discuss strategies in three different time frames – five years (2020 – 2025), ten years (2020-2030), and thirty years (2020 – 2050), with the most detail in the early years

On February 28, 2020, the Board authorized the award of Contract No. SP514-20 for a Strategic Business Plan to InfraStrategies LLC in an amount not to exceed $973,000 and with a term of one year.

Discussion

Status Update The Strategic Business Plan effort has completed many task elements since the contract began. Project activity kicked off on March 3, 2020 with in-person management meetings, then transitioned in mid-March to a more remote work environment due to the COVID-19 crisis. The Strategic Business Plan team achieved significant completion on a Baseline Report and a Historical Financial Profile – focused on changes and trends since 2015, the base year of the standing Metrolink Strategic Plan. The findings in these reports, in addition to a multi-pronged outreach strategy, form a foundation for development of the scenarios and strategies for the Strategic Business Plan.

The outreach and engagement effort had to be adjusted due to the constraints imposed by the COVID-19 crisis. In-person meetings and consultations, workshops, and onboard surveys had to be abandoned and replaced with remote online and telephone communication and online surveys. Over the course of the last few months, the outreach effort included a survey to MAAC members, discussions at an online workshop with CEOs (conducted on July 17), and

118 individual meetings with Board Members. As of July 17, the Strategic Business Plan team has met with 18 out of 21 Board members.

In addition, in order to capture opportunities related to the Authority’s organization, a survey was taken of employees at the end of June. The employee survey revealed many important insights about perceptions of the organization and culture of the Authority.

Organizational Communication

68% of respondents agree (strongly agree and agree) that Executive Leadership is working to improve communications with Metrolink staff 56% of respondents would describe Metrolink’s workplace dynamic as collaborative as opposed to siloed 75% of respondents feel their ideas are heard and taken seriously by their supervisors

Organizational Culture

55% of respondents feel that Metrolink fosters a culture of appreciation and support, articulating staff’s value to the organization 78% of respondents feel that Metrolink promotes a culture where diversity is embraced and valued, and harassment and discrimination are not tolerated 42% of respondents agree that Metrolink supports a culture that promotes and values risk-taking and innovation among staff at all levels

Safety

83% of respondents feel that the implementation of PTC has been the most important safety improvement that Metrolink has implemented, followed by Metrolink’s swift COVID response in areas of cleaning/sanitizing, social distancing, and conductor training 82% of respondents feel that workplace and train service safety is regularly integrated into the Metrolink culture

Work Environment

When asked to describe the one word that describes the Metrolink work environment, the top six responses, from the top are: Collaborative, Dynamic, Busy, Safe, Challenging, and Good

One important component of the Strategic Business Plan is a statement of Mission and Vision and associated Commitments. Ideas related to Mission, Vision were gleaned from Board interviews and the CEO workshop. A workshop will be held with Authority Board members to consolidate ideas and input received so far and to discuss potential ways to reflect new priorities and commitments.

The Strategic Business Plan team has recently completed a market analysis and framework for developing scenarios for a 5-year, 10-year, and 30-year outlook. The team is also completing financial forecasting and ridership forecasting to support a combined Short-Range Transit Plan and Strategic Business Plan.

Recommendation for Amendment

119 Contract No. SP514-20 was awarded by the Board to InfraStrategies LLC on February 28, 2020 for consulting services to develop a Strategic Business Pan. The Board approved a not- to-exceed amount of $973,000 to support this effort.

The COVID-19 pandemic has had fundamental negative impacts on the schedule and work requirements associated with the development of the Strategic Business Plan. With impacts from COVID-19 being felt from the very first days of work, and the State of California Shelter- in-Place (SIP) order taking effect within the first few weeks of work, both the Authority and InfraStrategies teams have had to find ways to work around the inability to convene in person and to mitigate the significant limitations of remote communications, further complicated by the demands on team members’ time related to COVID-related response activities. Additional level of effort was necessary in order to conduct proper engagement through several iterations of interviews and workshops with Board members and Member Agency staff and Chief Executive Officers.

These changes in the level of effort required to meet the requirements of the contract has resulted in contract authority being expended at a higher rate than was anticipated prior to start of the COVID-19 pandemic.

Furthermore, during the course of the development of the Strategic Business Plan, it was identified that a deeper exploration of the implications of Strategic Business Plan scenarios on investment in State of Good Repair was necessary. For this reason, staff is recommending the development of a State of Good Repair Financial Plan that reflects a prioritization of assets for investment over the time frame of the first 10 years of the plan.

After discussions and negotiations with the consultant, InfraStrategies has developed an approach to complete the Strategic Business Plan while complying with the State’s SIP order.

Therefore, Amendment No. 1 for Contract No. SP514-20 is to increase the not-to-exceed contract authority by $334,120, from 973,000 to $1,307,120, to complete the Strategic Business Plan and to augment it with a State of Good Repair Financial Plan.

Budget Impact

The amount for which contract authority is requested are included in the FY18-19 Carryforward Surplus earmarked to support CEO initiatives.

Alternatives Considered

The Board may reject the proposed recommendation to execute an amendment to Contract No. SP514-20. If so, staff would complete the Strategic Business Plan without the benefit of additional engagement with the Board, Member Agency CEOs, and regional stakeholders. Further technical refinements to the Strategic Business Plan and scenarios would be abbreviated. Separately, the supplementary State of Good Repair Financial Plan could be contracted through the Planning Bench. This would push the completion of work products beyond calendar year 2020 and beyond a time when it could provide useful inputs to the FY22 budget planning process and too late to have an impact upon the Strategic Business Plan

120 which is set to be complete by the end of 2020.

Next Steps

The Strategic Business Plan team will continue developing the combined Short-Range Transit Plan and Strategic Business Plan. A workshop, on a date not yet confirmed as of this writing, will be held with Authority Board members to discuss, and solicit additional feedback on plan elements. Furthermore, a draft of the Plans will be circulated to the public and key stakeholders (such as passengers, station cities, regional planning agencies, economic development organizations, and service delivery partners) after the Board Workshop, with the intent of soliciting feedback to be incorporated into the final versions of the Plans. The target is to bring the combined Short-Range Transit Plan / Strategic Business Plan before the Board before the end of calendar year 2020.

Prepared by: Roderick Diaz, Director, Planning and Development Brian Jacob, Senior Contract & Compliance Administrator

Approved by: Todd McIntyre, Chief Strategy Officer

121 ITEM 12.I

ITEM ID: 2020-76-0

TRANSMITTAL DATE: September 4, 2020

MEETING DATE: September 25, 2020

TO: Board of Directors

FROM: Stephanie Wiggins, Chief Executive Officer

SUBJECT: System Safety and Compliance - Quarterly Update

Issue

Recommendation

CONTRACTS, OPERATIONS, MAINTENANCE, AND SAFETY COMMITTEE received and filed this report.

Strategic Goal Alignment

This report aligns with the strategic goal to ensure a safe operating environment. The Agency’s System Safety Department identifies and mitigates existing and potential hazards on the system through oversight, compliance audits, outreach, training and statistical data analysis.

Background

122 The Authority’s mission is to provide safe, efficient, dependable, and on-time transportation service for the Southern California region. The System Safety Department works to optimize the safety of the agency through the use of education, engineering, and enforcement as well as auditing and inspecting for safety and regulatory compliance. Using a data-driven approach, the department utilizes both leading and lagging indicators to determine the use of agency resources and areas of focus.

Additionally, the department tracks and evaluates inspections conducted by the Federal Railroad Administration (FRA) and other regulatory agencies. Regulatory inspections conducted by the FRA and California Public Utilities Commission (CPUC) apply the general and permanent rules published in the Code of Federal Regulations, Transportation (Title 49 CFR Part 200-299) to oversee agency compliance and assess penalties for violations against both freight and commuter railroad agencies. The FRA conducts frequent inspections and audits agencies’ records to monitor and enforce railroad safety regulations specified in Title 49 CFR. The Authority places paramount importance on safety and compliance.

The department’s public safety outreach objectives are designed to reduce the number of strike incidents and improve the safety of employees and contractors by reducing the number of injuries and Rule Violations in the workplace. These objectives are accomplished by directly engaging with target audiences and by proactively influencing behavior through rail safety education and formal training. We outreach to at-risk constituencies systemwide through data- driven, geographically-targeted campaigns and public education programs.

Discussion

Systemwide Strikes

In Quarter 4 of FY2020 there were eight (8) strikes systemwide. This is a decrease of 33% compared to Quarter 4 of FY2019 when there were twelve (12) strikes systemwide. A Q4 comparison breakdown of strikes by type is presented in Figure 1 (Attachment A); a Q4 breakdown of strikes by train line is presented in Figure 2 (Attachment A).

In FY2020, there were a total of sixty-two (62) strikes combined. This is a 14% decrease from the seventy-two (72) combined strikes that occurred in FY2019. A graphical representation of FY2020 strike data by type compared to FY2019 is provided in Figure 3 (Attachment A).

Near Miss and Trespasser Reporting

As recommended in the FRA’s 2018 National Strategy to Prevent Trespassing on Railroad Property, System Safety leadership has worked with the Operations Department and Contractors to increase the reporting of “Near Miss” events and “Trespasser” sightings that happen on the right-of-way (ROW).

Near Miss: Any item listed below that requires any form of a brake application, throttle modulation, or reduction in speed to prevent a collision.

Near miss collision of train with another train, vehicle, object, or person/s and/or; Near miss collision of train with on-track equipment, wayside maintenance equipment, or

123 with an employee/contractor on the rail right-of-way and/or; Near miss industrial accident on the Authority's property with potential for serious injury or fatality.

A trespasser is an unauthorized person or group of persons observed on the ROW.

On January 1, 2020 the Authority started to track “Near Miss” events in the Safety Database. Between January 1 and June 30, 2020, there were a total of thirty-nine (39) near miss events on the Authority's system. In FY20 there were one thousand sixty-seven (1067) reports of trespassers on the Authority's system. A graphical representation of reported Near-Miss and Trespasser data from January 1 – June 30 in FY2020 compared to the same time period in FY2019 is provided in Figure 4 (Attachment A).

Near-Miss and Trespasser reports are recorded and tracked in the Authority's Safety Database. Tracking and analyzing Near Miss and Trespasser data is an important part of identifying trespasser “hot spots” on the ROW and is critical to improving ROW safety and enhancing the Authority’s safety culture.

On July 2020, the Authority was awarded a grant in the amount of $50,000.00 from the Federal Railroad Administration. This grant will help fund additional staff hours associated with the current Authority security campaign to reduce trespasser strikes on the ROW.

Rule Violations

In Q4 of FY2020, there were two (2) Rule Violations which is a 71% decrease from seven (7) violations during the same time period in FY2019. The violations consisted of a Roadworker Protection Violation and a Switch Handling Violation. Both Rule Violations were attributed to the Maintenance of Way contractor, Jacobs.

In FY2020, there were a total of sixteen (16) Rule Violations. This is a 41% decrease from the twenty-seven (27) Rule Violations that occurred in FY2019 (Figure 5 - Attachment A). Despite the decrease, management remains vigilant in working to mitigate Rule Violations through oversight of contractors working along the Authority’s rights-of-way and through an increased presence in the field. The System Safety Department continues to focus its resources on areas of vulnerability as indicated by the information analyzed from the Safety Database and Root Cause Analysis.

Reportable Injuries

In Quarter 4 of FY2020, there were eight (8) FRA reportable employee injuries, which is a 166% increase from three (3) injuries during the same time period of FY2019 (Figure 6 - Attachment A). A breakdown of the injuries by contractor can be found in Figure 7 (Attachment A). In our analysis of the injuries, we found that six (6) of the eight (8) injuries occurred midweek between Tuesday and Thursday (Figure 8 - Attachment A).

While none of the reportable injuries have been catastrophic, management is concerned with the increase and is working closely with contractors to mitigate future occurrences. All reportable injuries are now investigated for their root cause and corrective actions are issued with a requirement for the contractor to provide written adherence to the agency within thirty days.

124 In response to the increase in reportable injuries, System Safety recently initiated an agency- wide Workplace Safety Campaign as a way to increase the safety awareness of employees and to focus on maintaining a safe work environment. While a workplace can never fully eliminate risk, it can be reduced to a safer level. This is accomplished through clear communication and adequate risk analysis from all applicable agency personnel. Once risk levels can be identified and mitigated to an acceptable level, incidents can be reduced or even eliminated.

Root Cause Analysis

As part of its oversight, the System Safety Department conducts a Root Cause Analysis meeting following every suspected Rule Violation and when an employee injury is determined as reportable to the FRA. The meeting includes representatives from the departments directly responsible for contractor oversight as well as the contractor/employee involved. Meeting participants discuss the incident, identify the root cause and the steps needed to avoid a similar event in the future. Through open discussion, the group determines contributing factors and discusses recommendations going forward. This information is compiled into a report and then distributed to involved parties and Authority staff. A redacted version is also sent to all other contractors working for the Authority to increase safety awareness.

Regulatory Inspections

Between April 1, 2020 and June 30, 2020, the FRA and CPUC inspected the Authority a total of 25 times. This is a 55% decrease from the total conducted in the 4th quarter of FY2019. A summary of 4th quarter inspections, defects and violations is provided in figure 9 (Attachment A). Graphical representations of 4th quarter inspections, defects and violations compared to the same time period in FY2019 are provided in Figures 10 & 11 (Attachment A). Defects are items noted by the inspector where a Corrective Action is required but no fines are recommended. Violations are items noted by the inspector where a Corrective Action is required and a fine should be assessed.

In Q4, inspectors found 26 defects, which is a slight decrease from the same time period in FY2019. The number of Signal Department inspections decreased by 53% while their defects increased by 17%. The number of Mechanical Department inspections showed no change from the same time period of FY2019; their defects increased by 71%. All defects were assigned corrective actions. Staff works with the Authority's Contract Manager and the Contractors to ensure items are closed out in a timely manner.

There were no violations recommended in the 4 th quarter of FY2020.

Notably, the Operations Department did not receive a defect in FY2020.

A summary of total regulatory inspections for FY2020 is provided in Figure 12 (Attachment A).

Compliance Audits

Between April 1, 2020 and June 30, 2020, the Compliance Department conducted 327 Safety Inspections and 12 CFR 270 audits for regulatory compliance. The number of inspections by type conducted in Q4 is provided in Figure 13 (Attachment A).

125 Compliance Officers conducted a grand total of 1193 Inspections during FY2020; a summary of the number of audits and inspections by type is provided in Figure 14 (Attachment A).

Training and Outreach

2020 Area of Focus Pilot

In January, the System Safety, Security and Compliance Department initiated a pilot program of focused education and enforcement in a targeted area as determined by historical strike data. The area includes the cities on the Authority’s ROW between Van Nuys and Moorpark on the Ventura Line and between Burbank and Sylmar on the Antelope Valley Line. Although the COVID-19 directives on social distancing and group gatherings have hindered educational outreach, staff has continued to conduct ROW observations, field inspections, and work with MOW staff on homeless encampment clean-up.

2020 Paid Advertising Campaign

The Authority's Marketing Department in collaboration with Safety, Security & Compliance, plans and procures paid media campaigns as part of an ongoing commitment to reduce the number of incidents on Authority rights of way and rail crossings. The goal of the campaign is to heighten public safety awareness and promote safe behavior on and around the Authority’s service area. The campaign ran from April 13, 2020 – June 30, 2020 and consisted of radio and digital advertising in English and Spanish, targeted in areas near high-risk grade crossings and within a one-mile radius of train stations.

Operation Lifesaver

Due to the COVID-19 directives on group gatherings, Operation Lifesaver, Inc. (OLI) provided a limited number of Rail Safety Awareness presentations within the Authority’s service region in Q4 of FY2020. In total, they conducted four (4) presentations to schools and visited a homeless shelter in Santa Ana to drop off promotional items and speak about rail safety. OLI also conducted a month-long digital ad campaign that began on May 5, 2020 and utilized geo- fencing, video, and radio advertising in specific high-risk locations in Los Angeles, Orange, Riverside, and San Bernardino counties. The campaign resulted in 3,126,474 impressions delivered, 127,746 video completes (video completion rate of 68%), and 179,964 audio completes (audio completion rate of 95%).

Training

The System Safety Department conducts training throughout the year for employees, contractors, and outside law enforcement and fire agencies to meet compliance with federal regulations outlined in 49 CFR 200-299. The training increases safety awareness and assists in avoiding potential workplace and emergency response hazards. During the 4th quarter of FY2020, staff provided training classes for employees and contractors on the System Safety Program Plan (SSPP), Incident Response Plan (IRP), IndustrySafe Safety Management software, General Code of Operating Rules (GCOR), Passenger Train Emergency Preparedness (PTEP), Introduction to Railroad, and Timetable Training. In all, 253 employees and contractors participated in these training classes.

Department staff also provided training for law enforcement and fire agencies on Right-Of- Way Safety, Passenger Train Emergency Preparedness Plan, Passenger Train Emergency

126 Response Manual, Emergency Personnel Familiarization Training, and SWAT Emergency Personnel Familiarization Training. In Q4 of FY2020, a total of 308 law enforcement personnel and 485 fire personnel were trained at 11 different agencies.

Incident Reduction Task Force

The Incident Reduction Task Force (IRTF) is comprised of Authority staff, local law enforcement, social services, and Member Agency representatives that work collaboratively to reduce strike incidents systemwide. The IRTF meets monthly to share data, analyze risk, and develop mitigation strategies to assist in preventing incidents. In the 4th quarter of FY2020, IRTF efforts and discussion focused on homeless encampment clearance, trespassing on the ROW, and ways to improve security. Partner presentations included “Trespassing” presented by Jon Waide, Security Manager, and “Security Improvement Projects” by Llency Aquino, Senior Railroad Systems Engineer.

Budget Impact

There is no budgetary impact as a result of this report.

Next Steps

System Safety Staff will verify all assigned corrective actions are completed and closed out within the 30-day allotted time period. If not completed, staff will work with department/contract managers to determine additional time needed for completion of non-compliance issues. Management will continually evaluate corrective action data for trending improvement and adjust mitigation efforts as needed.

System Safety, Security and Compliance Staff will conduct a Workplace Safety Campaign follow-up event in November to reinforce safety messages, promote workplace engagement, and increase the safety awareness of SCRRA employees and contractors.

Prepared by: Don Filippi, Chief Safety, Security & Compliance Officer

Darrell Fizer, Senior Manager, System Safety, Security & Compliance

Victoria Thomson, Management Analyst I

Approved by: Don Filippi, Chief Safety, Security & Compliance Officer

Attachment(s)

Attachment A - Q4 System Safety Charts and Figures.pdf

127

Q4 System Safety Board Report – Attachment A

Figure 1. Q4 Systemwide Strikes

FY2019 Q4 FY2020 Q4

8 7

6 4 4 3 2 2 2 2

0 Trespasser Pedestrian Vehicle

Figure 2. FY20 Q4 Systemwide Strikes by Line

Pedestrian Strike Trespasser Strike Vehicle Strike

3 2 2 2 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Antelope Valley IE-OC Orange County Riverside Line San Bernardino Ventura Line 91/Perris Valley

Figure 3. FY19 & FY20 Total Systemwide Strikes

FY2019 FY2020

50 39 40 32 30 17 16 17 20 13 10

0 Trespasser Pedestrian Vehicle

128

System Safety and Compliance: Quarterly Report – Attachment A September 11, 2020 Page 2

Figure 4. Near-Miss and Trespasser Reports

Near-Miss Trespassers 1200 1067 1000 800 600 400 268 200 0 39 0 FY19 FY20 Near-Miss 0 39 Trespassers 268 1067

Figure 5. Rule Violations by Fiscal Year

Rule Violations Linear (Rule Violations)

30 27 25

20 16 15 10 5 0 FY2019 FY2020

Figure 6. Q4 Reportable Employee Injuries by Month

FY2019 FY2020

3.5 3 3 3 2.5 2 2 2 1.5 1 1 0.5 0 0 April May June

129

System Safety and Compliance: Quarterly Report – Attachment A September 11, 2020 Page 3

Figure 7. Q4 Reportable Injuries by Group

5 4 4 3 2 2 2 1 0 Bombardier Transdev Amtrak

Figure 8. Q4 Reportable Injuries by Day of the Week

2 2 2 2

1 1 1

0 Monday Tuesday Wednesday Thursday Friday Saturday Sunday

Figure. 9 Regulatory Inspection Summary, 4th Quarter FY2020

Inspections Defects Violations 16 14 12 10 8 6 4 2 0 Signal Track Mechanical Operations Safety Inspections 9 1 5 9 1 Defects 14 0 12 0 0 Violations 0 0 0 0 0

130

System Safety and Compliance: Quarterly Report – Attachment A September 11, 2020 Page 4

Figure 10. Regulatory Inspection Comparison, 4th Quarter FY2019 & FY2020

REGULATORY INSPECTIONS 56 60 50 40 25 30 19 18 20 9 11 9 5 5 10 1 2 0 0 1 0 SIGNALS TRACK MECHANICAL DISPATCH OPERATIONS SYSTEM AGENCY SAFETY TOTAL

FY2019 FY2020

Figure 11. Regulatory Defect Comparison, 4th Quarter FY2019 & FY2020

DEFECTS

30 27 26 25 20 14 15 12 12 10 6 7 5 0 0 0 0 0 0 0 0 SIGNALS TRACK MECHANICAL DISPATCH OPERATIONS SYSTEM AGENCY SAFETY TOTAL

FY2019 2020

Figure 12. Regulatory Inspection Summary for FY2020

Inspections Defects Violations 90 80 70 60 50 40 30 20 10 0 Signal Track Dispatch Mechanical Operations Safety Inspections 37 12 1 20 55 5 Defects 54 7 1 80 0 16 Violations 1 0 0 0 0 0

131

System Safety and Compliance: Quarterly Report – Attachment A September 11, 2020 Page 5

Figure 13. Q4 Compliance Inspections by Type

OPERATIONS 111 COMMUNICATION/SIGNAL 78 MECHANICAL 75 TRACK 38 SSP AUDIT CHECKLISTS 12 SAFETY 12 STATIONS 10 FACILITIES 3

0 20 40 60 80 100 120

Figure 14. Total FY2020 Compliance Inspections by Type

MECHANICAL 328 OPERATIONS 269 COMMUNICATION/SIGNAL 218 TRACK 210 SSP AUDIT CHECKLISTS 62 SAFETY 46 STATIONS 43 FACILITIES 16 PROJECTS 1

0 50 100 150 200 250 300 350

132 ITEM 12.J

ITEM ID: 2020-77-0

TRANSMITTAL DATE: September 4, 2020

MEETING DATE: September 25, 2020

TO: Board of Directors

FROM: Stephanie Wiggins, Chief Executive Officer

SUBJECT: Law Enforcement Activities - Quarterly Update

Issue

Staff provided a summary of the Authority’s law enforcement activities for Quarter 4 of Fiscal Year (FY) 2020.

Recommendation

CONTRACTS, OPERATIONS, MAINTENANCE, AND SAFETY COMMITTEE received and filed this report.

Strategic Goal Alignment

This report aligns with the strategic goal to ensure a safe operating environment. Law enforcement services provide safety and security to the Metrolink commuter rail system and its passengers.

Background

The Authority has obtained law enforcement services from the Los Angeles County Sheriff’s Department (LASD) since the beginning of its operations in 1992. The current contract is a three-year base term with one two-year option. We are currently in the first year of the two- year option.

133

The primary mission of the Authority’s law enforcement services is to ensure public safety onboard the trains, to coordinate enforcement with the cities along the Authority’s right-of-way, and to assist with the Authority’s fare enforcement and physical security program.

Discussion

The Authority’s law enforcement services focus on mitigating and reducing reported crimes against persons, property, and society, fare enforcement, right-of-way enforcement, and conducting joint grade crossing operations with outside law enforcement agencies.

In quarter four of FY20, Metrolink LASD Bureau reported (41) total crimes or, an average of 13.6 crimes per month, systemwide (Attachment A). The total number of crimes for the same period of FY19 was (45) (Chart 1). This is a decrease of 9% in Q4 of FY20.

Reported Crimes Against Persons

In quarter four of FY20, Metrolink LASD Bureau reported seven (7) crimes against persons, an average of 2.33 crimes per month, systemwide (Attachment A). The total number of reported crimes against persons for the same period in FY19 was four (4). This is an increase of 43% for FY20. The leading reported crime against persons was “Aggravated Assault” with six (6) total for the quarter.

Reported Crimes Against Property

In quarter four of FY20, Metrolink LASD Bureau reported five (5) crimes against property, an average of 1.66 crimes per month, systemwide (Attachment A). The total reported crimes against property for the same period of FY19 was three (3). This is an increase of 66% for FY20. The leading reported crime against property was “Throwing Object at Train”. This crime was never tracked in previous years and accounted for 37% of the systemwide crimes against property in FY20. Larceny was the second highest reported crime against property and accounted for 34% in FY20.

Reported Crimes Against Society

134 In quarter four of FY20, Metrolink LASD Bureau reported a decrease of crimes against society. The total reported crimes against society for the same period of FY19 was (38). This is a decrease of 23% in Q4 of FY20. The leading reported crime against society was “Trespassing” with a total of (29) trespassing arrests. Chart 1 in Attachment A shows Q4 of FY19/20 Total Crimes.

Fare Enforcement

Metrolink LASD Bureau provides on-board fare enforcement, including issuance of citations for violations in conjunction with the Authority’s Operations contractor. In Quarter four of FY20, due to the current COVID-19 guidelines, LASD did not conduct any of the following activities, fare enforcement, Street Car Details, Visible Intermodal Prevention and Response (VIPR), and train rides.

A street car detail is when field deputies work in conjunction with the train Conductor to open a limited number of doors on the train and check patrons for valid fare while they board the train. This is usually conducted at either Union Station or the end of the line station. Only those with valid fare are permitted to board the train.

A VIPR Operation is conducted by Metrolink LASD Bureau deputies, a K9 deputy and agents from the Transit Security Administration (TSA) and Homeland Security (Federal Air Marshalls). Some agents from Homeland Security work in plain clothes and others in uniform during the operations. Metrolink LASD Bureau Deputies conduct fare enforcement on board the trains while the K9 deputy walks the trains searching for potential explosive devices. The agents conduct visual observations of patrons to watch for suspicious activity or behavior.

A train ride is when field deputies, during their routine daily train rides, ride a train for more than three stops. While on board the train, deputies will check fares, enforce laws and provide a visible presence on the train.

Right-of-Way Enforcement

LASD conducted Right-of-Way (ROW) enforcement by patrolling the ROW for trespassers. They work in conjunction with agencies throughout the region to identify and relocate homeless persons and their encampments from the ROW. Working with local outreach agencies they can provide resources to those needing assistance. They also work in conjunction with the Authority’s Operations Department to conduct clean-up of encampments.

135

In quarter four of FY20, LASD conducted (36) trespasser contacts, issued (82) trespassing verbal warnings, (28) trespass written warnings, and (29) trespassing arrests (Table 1).

Table 1. Right-of-Way Enforcement

ROW Activity Number of Activity Trespass/Homeless Contact 36 Trespassing Verbal Warnings 82 Trespass Written Warnings 28 Trespassing Arrests 29

In quarter four of FY20, the were a total of four (4) trespasser strikes on the Authority’s system (Table 2). In quarter four of FY19 there were a total of seven (7) trespasser strikes on the Authority’s system. This was a decrease of 75% for FY20. The Inland Empire-Orange County (BNSF) had the most trespasser strikes with two (2). LASD continued their ROW enforcement activities in Quarter 4 of FY20 (Table 3) to curtail total trespasser strikes on the system.

Table 2. Trespasser Strikes by Line

Metrolink System Trespasser Strikes Ventura 1 Orange 0 San Bernardino 0 Antelope Valley 1 Riverside (UPRR) 0 Inland Empire-Orange County (BNSF) 2

Table 3. Total ROW Activities by Line

Metrolink System ROW Activities Ventura 130

136 Antelope Valley 18 San Bernardino 26 Riverside Line 12 Orange County 10 91/Perris Valley Line 3 Inland Empire-Orange County 3 Total 202

Joint Grade Crossing Operations

A Joint Grade Crossing Operation is when the Authority’s deputies, along with outside law enforcement agencies, team up to monitor and cite drivers for vehicle code grade crossing violations within a designated area. These operations are driven by the statistical data logged in the SCRRA Safety Database and each operation will focus on high risk locations. In quarter four of FY20, due to the pandemic, no joint grade crossing operations were performed.

Budget Impact

There is no budgetary impact as a result of this report.

Next Steps

Crime on the Authority’s system is a major safety and security issue. In FY20, continuing in FY21, the Safety, Security, and Compliance Department, in conjunction with LASD, Allied Universal (security services at SCRRA facilities and layovers), and outside agencies, SCRRA will work to mitigate crime and strikes through the following initiatives:

Targeted law enforcement activities based on the statistical analysis Utilize FRA Trespassing Grant Funds to enhance the current campaign Continue to focus our efforts and outreach throughout the system utilizing the SCRRA Community Outreach Program Finalize the Trespassing and Grade Crossing Study by outside consultant Enhance the LASD and Allied Universal policing plan to allow for additional resources both on the trains and the right of way Increased Grade Crossing Operations Introduce a joint SCRRA/University of Denver suicide prevention plan

137 Prepared by: Tinh Quach, Manager II, Security

Donald Filippi, Chief Safety, Security, and Compliance.

Approved by: Donald Filippi, Chief Safety, Security, and Compliance

Attachment(s)

Attachment A - Q4 Law Enforcement Board Report_Graphs.pdf

138

Law Enforcement Activities Q4 FY20 Report Graphs Meeting Date: September 11, 2020

Chart 1. Q4 of FY19/20 Total Crimes

FY19 Q4 FY20 Q4 40 38 35 29 30 25 20 15 10 7 4 5 5 3 0 Crimes Against Persons Crimes Against Property Crimes Against Society

139 ITEM 12.K

ITEM ID: 2020-79-0

TRANSMITTAL DATE: September 4, 2020

MEETING DATE: September 25, 2020

TO: Board of Directors

FROM: Stephanie Wiggins, Chief Executive Officer

SUBJECT: Performance Update on Contract No. OP136-10 Operator Services - Quarter Ended June 30, 2020

Issue

Staff provided an update on Contract No. OP136-10, Operator Services, with the National Railroad Passenger Corporation (Amtrak).

Recommendation

CONTRACTS, OPERATIONS, MAINTENANCE, AND SAFETY COMMITTEE received and filed this report.

Strategic Goal Alignment

This report aligns with the strategic goal to maintain fiscal sustainability and improve communications to customers and stakeholders. Staff believes that providing superior customer service to passengers equates to a great customer experience and repeat ridership.

Background

On June 24, 2016, the Board authorized the Chief Executive Officer to exercise the second and final three-year option under Contract No. OP136-10 with Amtrak and extend the period of performance to June 30, 2020. Subsequently, on May 10, 2019, the Board authorized an

140 extension of this contract with an expiration date of December 31, 2020. During the discussion, Director Hilda Solis requested that staff return on a quarterly basis to provide an update on the contractor's performance.

This report highlights Amtrak’s performance based on their compliance with Metrolink's operational supplemental instructions, specifically Conductors' onboard ticket scanning and providing proper/accurate announcements to customers. This report discusses fare compliance, inspection policy, and train and engine (T&E) crew responsibilities.

The current supplemental instructions provide guidelines in 11 areas for T&E crews operating on the Metrolink system. Adherence to supplemental instructions is monitored by Authority management and the Compliance Department. "Spot-checking" and observation of crew members is performed by riding trains and observing crews that arrive and depart from stations throughout the Metrolink system.

Discussion

Onboard Ticket Scanning

Scanning devices are used by Conductors to validate tickets issued by ticket vending machines (TVMs), print-at-home paper tickets, and mobile tickets purchased through the Metrolink smartphone application, or app. Prior to the deployment of the ticket scanning device all Conductors verified tickets by visual inspection.

As an immediate response to the COVID-19 pandemic and in an effort to encourage social distancing and keep riders and employees safe, the Authority has temporarily suspended its ticket scanning and verification program.

Management continues to host monthly meetings with Amtrak to discuss contract-related matters and areas of performance. Amtrak is provided monthly comprehensive reports indicating low performers with the expectation that corrective actions will be implemented by the Contractor. The Operations Administrator partners with Amtrak’s management team to resolve T&E matters in addition to providing support and oversight of the contract.

T&E Crew Responsibilities

141 Projecting a professional image is very important to the Authority. Conductors are Metrolink’s front line representatives and the first point of contact with passengers. Conductors are expected to perform their duties in a safe, courteous and efficient manner as outlined in the Metrolink supplemental instructions.

Customer complaints and commendations related to Conductor performance are documented in the Metrolink customer database for review and action. Attachment A reflects the previous quarter’s feedback from Metrolink customers through Metrolink’s website, call center, email, and social media platforms. The table shows customer feedback on Conductors per 100,000 boardings, an accepted industry metric. (See Attachment A.)

Customer feedback is a priority for the Authority as it provides insight into areas of the business that require improvement. For the quarter being presented, staff received three customer complaints. The Operations Administrator thoroughly vets and investigates customer complaints that are escalated. Amtrak is made aware of these claims with the expectation that corrective actions will be implemented.

Staff also received five Conductor commendations for the quarter. The Authority continues to recognize the Conductors in the Metrolink Matters newsletter in the “Conductors Corner” section wherein they are showcased based on commendations received by riders. These articles allow passengers to learn about Conductors, their contributions and their dedication to providing outstanding customer service to passengers.

Staff reviewed customer feedback by conducting a fiscal year comparison of FY 2020 to FY 2019 to determine trends related to the customer experience. As a result of this analysis, staff saw a slight increase in customer complaints filed in FY 2020 (27 complaints) compared to 25 complaints filed in FY 2019.

Staff also saw a significant increase in commendations received on behalf of conductors, 88 commendations in FY 2020 versus 72 commendations in FY 2019. Management believes that by acknowledging the conductors when warranted will enhance employee morale and improve performance, in addition to ongoing customer service training that emphasize the importance of providing great customer service will surely create value, exceed expectations and ensure that Metrolink emerge as the commuter rail of choice for travel needs.

Liquidated Damages

142 Staff continues to provide oversight of its Operator Services contractor to ensure the services provided comply with the terms and conditions of the contract related to train performance. For the quarter being reported, Amtrak was assessed $1,000 in Liquidated Damages. The assessment is associated with the crew departing the station early, resulting in a shove back move.

Liquidated damages assessed for the quarter (See Attachment B.)

Next Steps

Staff will continue to provide quarterly performance updates to the Board. The next performance report, covering the first quarter of FY21 ending September 30, 2020, will be presented at the November 13, 2020 Board of Directors meeting..

Prepared by: Rod Bailey, Deputy Chief Operating Officer, Dispatch and Operator Services

Arun Chakladar, Senior Director, Information Technology

Tonyette Moore, Operations Administrator

Approved by: Eric Hosey, Chief Operating Officer

Attachment(s)

Attachment A-Conductor Feedback Attachment B - Liquidated Damages

143 Attachment "A"

Customer Feedback about Conductors Fourth Quarter FY2020

14 12 April 2020 May 2020 June 2020 Ridership* 103,431 10 Ridership* 105,448 Ridership* 139,414 8 6 4 4 2 2.87 2 1 0.97 1 0.95 1.43 0 0.00 0 -2 April 2020 May 2020 June 2020

Complaints Commendations Complaints per 100,000 Boardings Commendations per 100,000 Boardings

144 Fourth Quarter Liquidated Damages - FY2020 $5,000.00

$4,000.00

$3,000.00

$2,000.00 $1,000.00 $1,000.00 $0.00 $0.00 $0.00 April 2020 May 2020 June 2020

*June 2020 - Crew departed a station early, resulting in a shove back move.

145 ITEM 12.L

ITEM ID: 2020-70-0

TRANSMITTAL DATE: September 4, 2020

MEETING DATE: September 25, 2020

TO: Board of Directors

FROM: Stephanie Wiggins, Chief Executive Officer

SUBJECT: Operations Performance Status Report

Issue

This report presented an update on the Authority’s Operations Performance for the months of June and July 2020.

Recommendation

CONTRACTS, OPERATIONS, MAINTENANCE, AND SAFETY COMMITTEE received and filed this report.

Strategic Goal Alignment

This report aligns with the strategic goals to retain and grow ridership, ensure a safe operating environment, improve communications to customers and stakeholders, and to improve operational efficiency. It is imperative that staff perform a review of Metrolink’s ridership and operations to identify areas of improvement and increase ridership. Measuring and communicating Metrolink’s operations performance is an integral component to promoting customer satisfaction and conveying the importance of regional rail to the general public.

Background

Metrolink’s operations are the foundation for the Authority’s mission to provide safe, efficient, dependable and on-time transportation that offers an outstanding customer experience and enhances quality of life. Operational excellence has a considerable effect on repeat ridership.

146 As such, staff has identified the ridership, on-time performance (OTP), and Positive Train Control (PTC) metrics as key performance indicators (KPIs) for reporting.

As context, Metrolink operates in a complex environment. Operations staff must coordinate with two Class 1 freight railroads and is responsible for the OTP of Amtrak service along the Los Angeles – San Diego – San Luis Obispo Rail (LOSSAN) Corridor. Normally, Metrolink alone operates 167 trains Monday through Thursday, 169 on Fridays, 48 on Saturdays and 42 on Sundays. Due to the COVID-19 pandemic, Metrolink reduced the number of trains operating to 115 Monday through Friday, with no change to weekend operations.

Ridership estimates are based on ticket sales and are measured by the boardings of passengers as well as fare revenue. OTP is a critical factor in the retention and growth of Metrolink ridership. OTP measures schedule adherence. To account for minor variations in service, trains operating within five minutes and 59 seconds of the published schedule are considered on-time. Force Majeure incidents are considered unforeseeable circumstances beyond the control of Authority staff.

PTC is vital to ensuring safe and efficient train operations. PTC performance is measured by two distinct metrics: performance by line and performance by railroad. Performance is based on having PTC protection for the entirety of a trip; any loss of PTC protection during a trip is considered a failure, after which staff performs daily root cause analyses for failed runs.

Discussion

The following is an overview of Metrolink’s OTP, PTC and ridership performance for the months of June and July 2020.

OTP

June 2020 Review

Systemwide OTP for the month of June was 95.4%; up 4.1% compared to the same period in 2019 (91.3%). A comparison of year-over-year numbers reveals there were approximately 1,270 fewer trains operated in 2020 vs. 2019 for the month of June. The difference in the number of trains operated is due to the schedule change in October 2019 (eight fewer trains), and the 30% COVID–19-related service reduction (52 fewer Monday to Thursday and 54 fewer on Fridays) that went into effect on March 26, 2020.

Comparing individual operating lines for June 2019 and 2020, all lines showed increases in OTP. The Inland Empire-Orange County Line showed the greatest improvement of 10.5%, increasing from 84.8% to 95.3%. This increase in OTP was due to a decrease in BNSF

147 delays (Dispatching, PTC, Operations, and Track categories). The Perris Valley Line increased from 90.4% to 96.8%. This increase was due to a decrease in BNSF PTC issues. All other lines were within a 4% deviation (all increases) from the previous year. In June 2020, there were 28 train delays due to 15 Force Majeure incidents (see Attachment A).

July 2020 Review

Systemwide OTP for the month of July was 92.5%, a decrease of 1.1% compared to the same period in 2019 (93.6%). A comparison of year-over-year numbers reveals there were approximately 1,270 fewer trains operated in 2020 vs. 2019 for the month of July. The difference in the number of trains operated is due to the schedule change in October 2019 (eight fewer trains), and the 30% COVID–19-related service reduction (52 fewer Monday- Thursday and 54 fewer on Fridays) that went into effect March 26, 2020.

Comparing individual operating lines for July 2019 and 2020, the Ventura County Line saw the biggest decrease in OTP of 7.7% from 96.4% to 88.7%. This was due to the July 14 signal system module failure and the July 21 police activity (homicide scene). The Antelope Valley Line also saw a decrease of 6.6% from 95.3% to 88.7% which was due to the July 5 signal vandalism and the July 10 and 11 Level 2 heat restrictions. The Orange County Line showed the greatest improvement of 7.7%, increasing from 90.6% to 98.3%. This increase in OTP was due to a decrease in Authority (Mechanical, PTC) and BNSF (Force Majeure) related delays. All other lines were within a 3% deviation from previous year. In July 2020, there were 56 train delays due to 19 Force Majeure incidents (see Attachment A).

PTC

June 2020 Review

Beginning in June 2020, Metrolink Train Control began to measure its PTC Performance based on mileage vs. by trip to align with industry metrics.

PTC performance by line measures Metrolink trains operating on Metrolink territories. From June 2019 to June 2020, PTC performance by line decreased slightly by 1% across all lines to 97%. The decline was due to the PTC Back Office Server (BOS) outage that occurred on June 27 and 28.

148 PTC performance by railroad measures all trains (Metrolink, Amtrak, BNSF and Union Pacific) operating on Metrolink territory. Comparing June 2019 to June 2020, PTC performance by railroad improved on all railroads by an average of 7%, at 95% (see Attachment A).

July 2020 Review

From July 2019 to July 2020, PTC performance by line slightly increase by 2% across all lines, to 98%. From July 2019 to July 2020, PTC performance by railroad improved on all railroads by an average of 6%, at 96% (see Attachment A).

Ridership

While ridership levels continue to be down more than 85% from a year ago, ridership recovery began to accelerate in June 2020. Total ridership in June was still down 85.8% from a year ago, but was up 32% over May 2020. The IEOC Line was up by as much as 55% since May 2020. Ridership recovery stagnated in July 2020 following a surge in new COVID-19 infections and the re-closing of businesses. Total ridership in July was down 86.1% from a year ago, and up 2% over June 2020. Since April 2020, ridership has recovered by 38%.

External Ridership Influences

With a partial reopening of the economy, unemployment in Los Angeles County declined to 19.5% from 20.5% in May. June unemployment for other counties was 14.8% for Riverside, 13.8% for San Bernardino, 13.7% for Orange, and 12.6% for Ventura. Gasoline prices were up from May 2020 but are still down 21% from a year ago. Economic data for July were not yet available at the time of this report's writing.

Next Steps

The rehabilitation of the PTC Network and Server Infrastructure is in progress and full implementation will be complete by middle of fourth quarter. This project is to upgrade the critical IT equipment which is vital for Metrolink’s PTC system compliance with the federal requirements, interaction with other railroads, and for the safety of Metrolink passengers and assets.

149 Continued collaboration with vendors will increase availability, reliability and efficiency of PTC software and hardware. Staff will continue its partnership with foreign railroads to further improve OTP and PTC performance through weekly meetings to identify root causes and remedial actions. Staff will also evaluate PTC data in an effort to increase capacity and reduce headways with new technology and software.

Prepared by: Rod Bailey, Deputy Chief Operating Officer

Michael Rodriguez, Senior Manager, Train Control Systems

Shamonda Jones, Senior Manager, Dispatching Operations

Eric Crisler, Senior Manager, Dispatching Operations

Henning Eichler, Market Insights and Analytics Manager

Approved by: Eric Hosey, Chief Operating Officer Jennifer Vides, Chief Marketing and Communications Officer

Attachment(s)

Attachment A - June & July OTP

150 OPERATIONAL PERFORMANCE

JUNE 2020

Note: includes force majeure incidents

JULY 2020

Note: includes force majeure incidents

CUSTOMER FIRST: Safety & Security • An Integrated System • Modernizing Business Practices 151 FORCE MAJEURE RELATED DELAYS

JUNE 2020 JULY 2020

30 27 15 14 25

20 10 14 7 15 13 6 10 5 5 1 2 0 0 DEBRIS POLICE TRESPASSER WEATHER DEBRIS STRIKE POLICE TRESPASSER WEATHER STRIKE ACTIVITY STRIKE RELATED ACTIVITY STRIKE RELATED

* 28 TRAIN DELAYS DUE TO 15 FORCE * 56 TRAIN DELAYS DUE TO 19 FORCE MAJEURE INCIDENTS MAJEURE INCIDENTS

CUSTOMER FIRST: Safety & Security • An Integrated System • Modernizing Business Practices 152 JUNE 2020 139,414 RIDERSHIP UPDATE Boardings -85.8% JUNE 2020 JUNE 2019 984,629 JUNE 2020 HIGHLIGHTS EXTERNAL RIDERSHIP FACTORS RIDERSHIP CHANGE FROM PRIOR YEAR - LAST 13 MONTHS Ventura County Line Ridership Antelope Valley Line Ridership Ridership levels continue to be down GASOLINE PRICES (Change from prior year) (Change from prior year) 20,000 more than 85% from a year ago. Yet, Los Angeles Metropolitan Area 50,000 ridership recovery began to accelerate 0 (20,000) 0 in June 2020. Total ridership in June (40,000) was still down 85.8% from a year ago, (50,000) JUN 2019 (60,000) but it was up 32% over May 2020, while (100,000) JUN 2020 (80,000) the IEOC Line was up by as much as $3.70 (100,000) (150,000) 55% since May 2020. $2.91 JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN Source: U.S. Bureau of Labor Statistics San Bernardino Line Ridership Riverside Line Ridership With a partial reopening of the economy (Change from prior year) (Change from prior year) unemployment in Los Angeles County Unemployment Rate 50,000 20,000 declined to 19.5% from 20.5% in May 0 0 Los Angeles County though it remained the highest across (50,000) (20,000) (100,000) (40,000) the region. June unemployment for other 19.5% counties was 14.8% for Riverside, (150,000) (60,000) 13.8% for San Bernardino, 13.7% for 4.5% (200,000) (80,000) (250,000) (100,000) Orange, and 12.6% for Ventura. JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN Gasoline prices were up from May 2020 Orange County Line Ridership IEOC Line Ridership but are still down 21% from a year ago. Jun-19 Jun-20 (Change from prior year) (Change from prior year) Source: CA Employment Development Dept. 50,000 20,000 0 0 (20,000) TOP 10 STATIONS BY RIDERSHIP CHANGE (50,000) (40,000) (100,000) STATION JUN-19 JUN-20 diff % (60,000) (150,000) LA UNION -86% (80,000) 13,545 1,849 (11,696) (200,000) (100,000) FULLERTON 1,571 142 (1,429) -91% (250,000) (120,000) JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN IRVINE 1,389 108 (1,281) -92% 91 / Perris Valley Line Ridership Systemwide Ridership TUSTIN 1,175 114 (1,061) (Change from prior year) -90% (Change from prior year) 20,000 BURBANK -92% 200,000 928 76 (852) 0 NORWALK/SANTA FE SPRINGS -89% 0 883 98 (784) (20,000) (200,000) NORTH MAIN CORONA 849 107 (742) -87% (40,000) (400,000) INDUSTRY 753 39 (714) -95% (60,000) (600,000) (800,000) RIVERSIDE-DOWNTOWN -84% (80,000) 838 133 (706) JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN (1,000,000) GLENDALE 777 94 (683) -88% JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN Source: Ticket-based ridership estimates Source: Ticket-based ridership estimates

CUSTOMER FIRST: Safety & Security • An Integrated System • Modernizing Business Practices 1533 JULY 2020 142,729 RIDERSHIP UPDATE Boardings -86.1% JULY 2020 JULY 20191,024,992 EXTERNAL RIDERSHIP FACTORS RIDERSHIP CHANGE FROM PRIOR YEAR - LAST 13 MONTHS JULY 2020 HIGHLIGHTS Ventura County Line Ridership Antelope Valley Line Ridership GASOLINE PRICES (Change from prior year) (Change from prior year) 20,000 Ridership recovery stagnated in July Los Angeles Metropolitan Area 50,000 2020 following a surge in new infections. 0 Total ridership in July was down 86.1% (20,000) 0 from a year ago, and up 2% over June (40,000) (50,000) (60,000) 2020. Since April 2020 ridership has JUN 2019 (100,000) recovered by 38%. JUN 2020 (80,000) (100,000) (150,000) $3.70 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL Economic data for July were not available $2.91 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL at the writing of this report. But in June Source: U.S. Bureau of Labor Statistics San Bernardino Line Ridership Riverside Line Ridership unemployment in Los Angeles County (Change from prior year) (Change from prior year) 50,000 20,000 declined to 19.5% from 20.5% in May. Unemployment Rate 0 0 Los Angeles County June unemployment for other counties (50,000) (20,000) was 14.8% for Riverside, 13.8% for San (100,000) (40,000) Bernardino, 13.7% for Orange, and 19.5% (150,000) (60,000) 12.6% for Ventura County. Gasoline 4.5% (200,000) (80,000) (250,000) (100,000) prices were up from May 2020 but are JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL still down 21% from a year ago. Orange County Line Ridership IEOC Line Ridership Jun-19 Jun-20 (Change from prior year) (Change from prior year) Source: CA Employment Development Dept. 50,000 20,000 0 0 (20,000) (50,000) TOP 10 STATIONS BY RIDERSHIP CHANGE (40,000) (100,000) STATION JUL-19 JUL-20 diff % (60,000) (150,000) ANAHEIM (80,000) 554 62 (492) -89% (200,000) (100,000) ANAHEIM CANYON 288 46 (242) -84% (250,000) (120,000) JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL BALDWIN PARK 332 64 (268) -81% 91 / Perris Valley Line Ridership Systemwide Ridership BUENA PARK 598 64 (533) (Change from prior year) -89% (Change from prior year) 20,000 BURBANK -90% 200,000 885 89 (797) 0 BURBANK AIRPORT - NORTH -80% 0 75 15 (60) (20,000) (200,000) BURBANK AIRPORT - SOUTH 198 17 (181) -91% (40,000) (400,000) CAL STATE LA 369 58 (311) -84% (60,000) (600,000) (800,000) CAMARILLO 97 15 (83) -85% (80,000) JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL (1,000,000) CHATSWORTH 297 27 (271) -91% JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL Source: Ticket-based ridership estimates Source: Ticket-based ridership estimates

CUSTOMER FIRST: Safety & Security • An Integrated System • Modernizing Business Practices 1544 ITEM 12.M

ITEM ID: 2020-89-0

TRANSMITTAL DATE: September 4, 2020

MEETING DATE: September 25, 2020

TO: Board of Directors

FROM: Elisabeth Lazuardi, Senior Manager, Internal Audit

SUBJECT: Internal Audit Policy Updates

Issue

The existing Internal Audit Policy needs to be updated to establish the requirement to include copies of all audit reports in the Board agenda and to present certain corrective actions as discussed below for Board approval before corrective action implementation.

Recommendation

AUDIT AND FINANCE COMMITTEE RECOMMENDED (4-0) the Board approve the updated Internal Audit Policy.

Strategic Goal Alignment

This report aligns with the Authority’s strategic goal to improve organizational efficiency. The recommendation for this item will provide increased transparency with respect to External Audit Reports in a more timely fashion and improve the policy alignment with the auditing standards and the Authority’s current practices.

155 Background

The Authority is periodically audited, reviewed, or examined by federal, state, or local Agencies. Internal Audit’s practice is to act as the liaison for these external activities which includes coordinating, tracking, monitoring and reporting the audit results to the Board. Since the establishment of the Internal Audit Department in FY 2014, a significant amount of external audit activity has been conducted. We have summarized the activity in Table 1 below which highlights the type of external activity that was conducted, the frequency of the activity, the type of activity (audit, review or other) and the current delivery method to report the results to the Board:

Table 1 – Summary of External Activity FY 2014 – FY 2020

Information External Activity Frequency Activity Type Currently Provided to Board CAFR Annual Audit Full Report Single Audit Annual Audit Full Report Agreed Upon National Transit Database Annual Report Highlights Procedure FTA Triennial Review Every 3 Years Review Report Highlights OCTA & RCTC FTA Every 3 Years Review Report Highlights Subrecipient Review State Controller’s Office Periodic* Audit Report Highlights** Compliance Report on MOU Annual Examination Report Highlights with LACMTA Member Agency Periodic* Audit Report Highlights** CalPers Periodic* Review Report Highlights CalOES Periodic* Audits Report Highlights** CalOES Periodic* Reviews Report Highlights State Triennial Performance Every 3 Years Audit Report Highlights** Audit

* Periodic activity is dependent on the external agency conducting the Audit/Review. Activity is typically conducted on a project by project basis and is performed to verify allowable usage of funds.

** Internal Audit proposal is to provide full audit reports to the board on a going-forward basis.

156 Discussion

As reflected on Table 1, currently, the CAFR and Single Audit are the only audits where the full audit report is included in the Board agenda. Copies of other reports from external activities (i.e. Reviews, Examinations, AUP, etc.) are not presented to the Board. Internal Audit does make these reports available upon request however, and currently does report on highlights of the applicable reports. Highlights typically entail findings and corrective actions prescribed in those reports.

To strengthen and formalize the reporting process related to external activities, Internal Audit is recommending that, going forward, copies of all External Audits be included in Board Agendas. Report copies of other external engagements (i.e. Reviews, Agreed Upon Procedures, Examinations, and others) will continue to be available upon request and Internal Audit will continue providing highlights to the Board for the results of the other external engagement reports. See Section 1.10 of the updated Internal Audit Policy - IA1.1 in Attachment (A) which reflects the recommendation.

Monitoring of Corrective Actions

Corrective Actions resulting from the external activities identified in Table 1 are reported to the Board on a quarterly basis, along with the implementation status of those corrective actions. Corrective Actions are typically discussed and agreed to by Authority Management and the External Auditor prior to being put in motion and assigned a due date. Internal Audit recommends that Corrective Actions requiring cash outlay above and beyond the CEO’s delegated authority, as prescribed in the Procurement and Contracting Policies Section 3, should require Board approval. This recommendation is reflected in Section 1.10 of the updated Internal Audit Policy – IA1.1 in Attachment (A).

Other Internal Audit Policy Updates

The last revision made to the Internal Audit Policy occurred on October 27, 2017. Since this date there have been updates to the auditing standards that the Department follows, along with overall changes to business practices followed by the Authority.

As such, Internal Audit made additional edits to the Policy to ensure that it remains consistent with the evolving business practices of the Authority. These policy updates can be found in

157 the redlined version of the policy at Attachment A, and have also been summarized below:

Separation of procedures from the policy - see Section 1.5 Updates in connection with the Board committee restructuring Removal of duplicate sections referring to the auditing standards. Updates to align with the current auditing standards Board approval requirement to close out corrective actions when the originally proposed corrective actions is not implemented - see Section 1.6. Removal of sections under Section 1.9 to restrict other departments from using the word “audit”. There are other departments that utilize the word “audit” for general business purposes. For example, the Compliance team from the System Safety Department are required to perform regulatory audits that are independent of the work performed by the Internal Audit Department.

Budget Impact

There is no budgetary impact as a result of this report.

Alternatives Considered

The Board could recommend additional edits/changes to the policy as deemed necessary.

Next Steps

Upon Board approval, Internal Audit will immediately implement the approved policy changes.

Prepared by: David Rogers, Senior Auditor, Internal Audit

Approved by: Elisabeth Lazuardi, Senior Manager, Internal Audit

Attachment(s)

Attachment A - IA Policies and Procedures - red lined Attachment B - IA Policies and Procedures - clean

158 Attachment A

TITLE: Internal Audit Polyicies & Procedures No.: IA-1.1

ORIGINATING UNIT: Internal Audit Department

EFFECTIVE DATE: June 12, 2015 REVISION: October 27, 2017

PURPOSE The purpose of this policy is to establish the methods, guidelines and accountability for the Southern California Regional Rail Authority’s (SCRRA or Authority) Internal Audit Department (IA).

APPLICATION This policy and procedures document applies to all SCRRA employees. The Chief Audit Executive (Head of Internal Audit Department) is responsible for the administration of this policy; the Chief Executive Officer (CEO) is responsible for management’s adherence to this policy. Management is responsible for establishing and implementing adequate internal controls, responding to audit findings and recommendations, and the timely implementation of corrective action related to deficiencies identified in audit reports.

POLICY STATEMENT 1.0 PROCEDURES 1.1 Implementation of Policy 1.1.1 The Chief Audit Executive will implement this policy through activities including, but not limited to, the following: Develop and execute an Annual Audit Plan that includes a risk- based approach. 1.1.2 Provide reports periodically on the results of all audit activities to the Executive Management & Audit and Finance Committee (AFCOMEMAC)/ Board of Directors (Board).

1.1.3 Act as Audit Liaison by coordinating and monitoring audits by external auditors, including those conducted by independent financial statement auditors and state and federal officials.

Page 1 of 7

159

1.1.3 1.1.4 Adherence to the mandatory elements of the Institute of Internal Auditors’ (IIA) International Professional Practices Framework, including the Core Principles for the Professional Practice of Internal Auditing, the Code of Ethics, the International Standards for the Professional Practice of Internal Auditing (Standards), and the Definition of Internal Auditing. Comply with the Government Auditing Standards promulgated by the Comptroller General of the United States (GAGAS). 1.1.51.1.4 Manage professional audit staff with sufficient knowledge, skills, experience, and professional credentials to maintain adherence to the IIA’s International Professional Practices Framework and compliance with the Government Auditing Standards promulgated by the Comptroller General of the United States (GAGAS).GAGAS. 1.1.61.1.5 Develop and monitor a quality assurance program for the IA and contracting for a triennial Quality Assurance (Peer) Review of the IA. 1.1.71.1.6 Assist the AFCOMEMAC/Board in fulfilling its audit oversight responsibilities, as specified in the Bylaws"Roles & Responsibilities of the SCRRA Board of DirectorsExecutive Management & Audit Committee” as included in the SCRRA Bylaws.

1.2 Professional Standards and Ethics The IA and the internal auditors adhere to the mandatory elements of the Institute of Internal Auditors (IIA)’sIIA’s International Professional Practices Framework, including the Core Principles for the Professional Practice of Internal Auditing, the Code of Ethics, the International Standards for the Professional Practice of Internal Auditing (Standards), and the Definition of Internal Auditing. The IA and the internal auditors also comply with GAGAS.

1.3 Confidentiality Internal auditors respect the value and ownership of information they receive and do not disclose information without appropriate authority unless there is a legal or professional obligation to do so. The final audit report including auditee responses should be reviewed by the SCRRA General Counsel before being presented to the AFCOMEMAC/Board for purposes of identifying any legal issues.

1.4 Reporting Procedures to AFCOM/BoardEMAC At AFCOM/BoardEMAC meetings, the Chief Audit Executive will present information, including but not limited to, the IA’s annual audit plan and its progress, any adjustments made to its annual audit plan, results of audit engagements, or other activities, any staffing or resource limitations, quality assurance and improvement program, adherence to the IIA’s International Professional Practices Framework, and compliance with GAGAS.

160 IA-1.1 – Internal Audit PolicyPolicies & Procedures; IA-1.1

The audit plan must be presented to and adopted by the AFCOMEMAC/Board annually. No audit will be initiated unless it is either included in the adopted audit plan or subsequently approved by the AFCOMEMAC/Board.

1.5 Audit Services and Audit Reports In executing its annual audit plan, the IA will employ protocols designed to clarify and provide consistency to the internal audit process. These general protocols are in no way meant to restrict audit objectives, scope or access to records or information. As prescribed in the Standards and GAGAS, the phases of an internal audit consist of Planning, Fieldwork and Reporting. and are as follows: 1.5.1 Planning (Phase I) includes: Engagement Letter/Audit Initiation Memo Entrance Conference with auditee Preliminary Survey & Documentation Review of Processes and Internal Control Conduct Risk Assessment (for applicable audit activities) Develop Audit Programs 1.5.2 Fieldwork/Execution (Phase II) includes: Detailed Tests of Internal Controls and Transactions Continuous Communication During the course of conducting fieldwork, the IA staff will advise the Chief Audit Executive of any significant findings or concerns, including those which will require a significant deviation from, or additions to, the planned objectives or scope of the audit. The IA will communicate significant findings and scope changes to management during the course of the audit when feasible.

1.5.3 Reporting phaseResults (Phase III) Write a draft report of an internalthe audit a, findings, and/or recommendations Audit participants’ review of draft report Exit Conference Management Response (for applicable audit activities) Discussion with CEO and Senior Executive Independent Report Review Final Report A preliminary draft report will be circulated to all auditeesaudit participants prior to the exit conference. Draft reports are considered unofficial working papers, subject to revisions and will, therefore, remain restricted, in use and distribution, to the IA and auditeesaudit participants.

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Responses toAn exit conference will be held with audit participants. The purpose of the exit conference is to: 1.5.3.1 Confirm the accuracy of all information presented in the draft report. 1.5.3.2 Determine if all pertinent information and data has been considered. 1.5.3.3 Answer questions about the practicality of the recommendations reflected within the draft reportsand the accuracy of the findings.

1.5.3.4 Discuss proposed revisions or changes. 1.5.3.5 For applicable audit activities, discuss the audit responses and identify an agreed upon due date for responses to be provided.

1.5.3.6 Discuss input or suggestions regarding the audit process. Following the exit conference, agreed upon revisions will be made to the draft report and the report will be recirculated to audit participants. For applicable audit activities, responses to audit recommendations will be prepared by management and submitted to the Chief Audit Executive within 10 business days (depending on the urgency of the report). Management requests for response submissions subsequent to 10 business days will be at the discretion of the Chief Audit Executive or the AFCOMEMAC/Board. In general, responses should include:

• Whether management agrees or disagrees with the findings and recommendations;

• Corrective actionImprovement plan;

• Target completion date for implementation. The CEO will be advised of any significant findings and recommendations for which there is disagreement between management and the IA concerning fact, finding, or recommendation. Responses to audit recommendations will be incorporated into the final report. CEO’sManagement’s signature indicating his/hertheir review and acknowledgement of the final report will be requested and included in the report. The final audit report will be issued to all auditeesaudit participants and presented and distributed to AFCOMEMAC/Board.

1.6 Follow-up Review One of the primary responsibilities ofas professional internal auditors is determining that the auditee takes corrective actionsor improvement action on audit recommendations.

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162 IA-1.1 – Internal Audit PolicyPolicies & Procedures; IA-1.1

Periodic follow-up communications will therefore be conducted with management after the issuance of an audit report until all recommendations have been satisfactorily addressed.

The Chief Audit Executive shall seek AFCOM/Board approval to close out any corrective action items when the originally proposed corrective action is not implemented. This typically occurs if:

i. Management decides to accept the risk and not implement the corrective action; or

ii. The corrective action no longer applies due to a significant change in the process.

1.7 Special Audit Requests From time to time, the AFCOMEMAC/Board or the CEO may request specialad hoc audits or consulting services from IA to reviewreviews of projects, programs or activities. IA will allocate a portion of time specifically to these requests within its annual audit plan. Special Requests made by the CEO should be made to the IA in writing with a clearly stated objective and the AFCOMEMAC/Board should be notified of the Special Audit Requests. If the Special Audit Requests will result in significant changes to the Annual Audit Plan Reports, the AFCOMEMAC/Board should be informed. Reports issued, if any, pursuant to these requests will be provided to the AFCOMEMAC/Board.

1.8 Fraud, Illegal Acts, Violations of Provisions of Contracts or Grant Agreements, Waste or Abuse Investigations Fraud encompasses an array of irregularities and illegal acts characterized by intentional deception. It can be perpetuated for the benefit or detriment of individuals and the Authority. It can be committed by anyone at the Authority, no matter what level, and can be done by persons outside the Authority acting alone or in collusion with others inside or outside the Authority. GAGAS prescribes requirementsprescribe internal auditors' responsibilities for reporting on noncompliance with considering fraud, illegal acts, violations of provisions of laws, regulations, contract,contracts or grant agreements, waste or abuse during their planning for, and instancesexecution of fraud. , audits. The IA operates a confidential hotline in coordination with the Legal Department for the Authority’s employees, contractors, and other interested parties to report fraud, waste and abused affecting the Authority’s resources. The Employee Hotline Reporting Policy is provided in Policy 1.2.

1.9 Record Access to Records All employees will cooperate fully in making available material or information requested

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by an internal auditor. The IA will have no direct operational responsibility or authority over any of the activities audited. The EMAC/Board has authorized the IA to perform internal audits within SCRRA. Therefore, only personnel within the IA should be referred to as internal auditors and only their work should be referred to as internal audit activities. SCRRA employees performing work involving review and verification of various aspects of SCRRA operations should not be referred to as auditors and their work should not be referred to as audits or audit activities.

1.10 External Audits and Other Engagements All external audits and other external engagements of SCRRA conducted by the federal, state, or local officialsof SCRRA will be coordinated through or with the Chief Audit Executive of the IA. Other external engagements may be in the form of , including audits conducted by state, federal, or local officials. From time to time, the IA will retain the services of audit consultants to supplement internal audit staff and assist with internal audits and reviews, agreed upon procedure, examination, etc. . Audit consultants will be selected using SCRRA's approved procurement process, and will comply with this policy. The IA will notify the EMAC/Board and the CEO regarding the initiation of any required external audits by independent third parties. When a department is notified by the outside auditors of an impending audit or other external engagementsreview, the department head should immediately contact the Chief Audit Executive and forward a copy of the notification letter to the Chief Audit Executive. The IA will notify the AFCOM/Board and the CEO regarding the initiation of any required external audits or other external engagements by independent third parties. Full copies of external audit reports will be included in Board Agendas. Report copies of other external engagements (i.e. Reviews, Agreed Upon Procedures, Examinations and other) will be available upon request. Audit and other external engagement recommendations and the status of corrective actions are reported to the Board on a periodic basis. Corrective actions requiring cash outlay above the CEO’s delegated authority as prescribed in the Procurement and Contracting Policies Section 3, should require Board approval. IA will coordinate with management to present the corrective actions for Board approval before implementing the corrective actions.

1.11 Audit Provision in Contracts and Agreements 1.11 Contract Compliance Audits The Purchasing, Contracts, and Contract Compliance Department will ensure that provision is made in all contracts and agreements for examinations by the IA of the

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164 IA-1.1 – Internal Audit PolicyPolicies & Procedures; IA-1.1

counterparty's books and records relating to such contracts and grant agreements.

2.0 2.0 DEFINITION OF TERMS External Audits and Other Engagements – External Audits – Audit of SCRRA or other external engagements (i.e. review, examination, agreed upon procedures, or other) being conducted by a government or other legal entity that is independent of SCRRA. External Financial Audits – Financial Audits provide an independent assessment of whether SCRRA’s reported financial information (e.g. financial condition, results, and use of resources) are presented fairly in accordance with recognized criteria. Financial audits alsoperformed in accordance with GAGAS include financial statement audits and other related financial audits. Financial audits of SCRRA’s financial statements and accompanying disclosures which are conducted by an independent auditor on an annual basis.

Internal Audits – Internal Audits are typically identified as Performance Audits meaning that it is an Independent, objective assurance activity designed to add value to improve SCRRA’s operations by SCRRA’s IA Department. Internal Audits can include an array of audit activity such as: Special Audit Requests - These services may include, but are not limited to,Performance Audits – Performance audits are defined as audits that provide findings or conclusions based on an evaluation of sufficient, appropriate evidence against criteria. Performance audits provide objective analysis assist management and those in charge with governance and oversight in using the information to improve program performance and operations, reduce costs, facilitate decision making by parties with responsibility to oversee or initiate corrective action, and contribute to public accountability. Attestation Engagements – Attestation engagements can cover a broad range of financial or non-financial objectives about the subject matter or assertion depending on the users’ needs.

Non-audit (Consulting) Services:

o Management or the EMAC/Board requested ad hoc independent reviews, fraud investigations, or other advisory/consulting services – May include requests for advice regarding the establishment of new or revised operational procedures, questions on best practices or guidance in policy and procedures development and responses to Ethics Hotline Reports.

o 3.0 Audit Liaison – The IA serves as an audit liaison between SCRRA departments and external auditors: attending most entrance and exit conferences, assist in ensuring that audit needs are met, and audit findings are adequately addressed.

3.0 RESPONSIBILITIES Chief Audit Executive

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The Chief Audit Executive has overall responsibility for the IA. The Chief Audit Executive reports functionally to the AFCOMEMAC/Board and administratively (i.e., day-to-day operations) to the CEO.

4.0 REFERENCES 4.1 Government Auditing Standards promulgated by the Comptroller General of the United States (GAGAS), commonly referred to as the "Yellow Book".”.

4.2 Mandatory elements of the Institute of Internal Auditors'Auditors’ (IIA) International Professional Practices Framework, including the Core Principles for the Professional Practice of Internal Auditing, the Code of Ethics, the International Standards for the Professional Practice of Internal Auditing (Standards), and the Definition of Internal Auditing. These StandardsThey are commonly referred to as the "“Red Book.".”

5.0 POLICYPROCEDURE HISTORY DATE June 12, 2105_ _ New Policy and Procedures document approved DATE _October 27, 2017 Updated to reflect changes in the Internal Audit Charter and to improve and clarify audit protocols

Updates made to reflect changes for a.) providing external audit reports to the Board of Directors; b.) identifying management’s responsibilities for creating and addressing corrective actions and situations where corrective actions may need board approval; and c.) General housekeeping updates and changes to keep the policy in alignment with the evolving business practices of the Agency as well as changes to Auditing Standards.

Approvals

Senior Manager, Legal Counsel Chair, Board of DirectorsChief AuditDepartment Director Executive Officer

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166 Attachment B

TITLE: Internal Audit Policy No.: IA-1.1

ORIGINATING UNIT: Internal Audit Department

EFFECTIVE DATE: June 12, 2015 REVISION:

APPLICATION This policy applies to all SCRRA employees. The Chief Audit Executive (Head of Internal Audit Department) is responsible for the administration of this policy; the Chief Executive Officer (CEO) is responsible for management’s adherence to this policy. Management is responsible for establishing and implementing adequate internal controls, responding to audit findings and recommendations, and the timely implementation of corrective action related to deficiencies identified in audit reports.

1.1.2 Provide reports periodically on the results of all audit activities to the Audit and Finance Committee (AFCOM)/ Board of Directors (Board).

1.1.3 Act as Audit Liaison by coordinating and monitoring audits by external auditors, including those conducted by independent financial statement auditors and state and federal officials.

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167 IA-1.1 – Internal Audit Policy

1.1.4 Manage professional audit staff with sufficient knowledge, skills, experience, and professional credentials to maintain adherence to the IIA’s International Professional Practices Framework and compliance with the Government Auditing Standards promulgated by the Comptroller General of the United States (GAGAS).

1.1.5 Develop and monitor a quality assurance program for the IA and contracting for a triennial Quality Assurance (Peer) Review of the IA.

1.1.6 Assist the AFCOM/Board in fulfilling its audit oversight responsibilities, as specified in the Bylaws of the SCRRA Board of Directors.

1.2 Professional Standards and Ethics The IA and the internal auditors adhere to the mandatory elements of the Institute of Internal Auditors (IIA)’s International Professional Practices Framework, including the Core Principles for the Professional Practice of Internal Auditing, the Code of Ethics, the International Standards for the Professional Practice of Internal Auditing (Standards), and the Definition of Internal Auditing. The IA and the internal auditors also comply with GAGAS.

1.3 Confidentiality Internal auditors respect the value and ownership of information they receive and do not disclose information without appropriate authority unless there is a legal or professional obligation to do so. The final audit report including auditee responses should be reviewed by the SCRRA General Counsel before being presented to the AFCOM/Board for purposes of identifying any legal issues.

1.4 Reporting Procedures to AFCOM/Board At AFCOM/Board meetings, the Chief Audit Executive will present information, including but not limited to, the IA’s annual audit plan and its progress, any adjustments made to its annual audit plan, results of audit engagements, or other activities, any staffing or resource limitations, quality assurance and improvement program, adherence to the IIA’s International Professional Practices Framework, and compliance with GAGAS. The audit plan must be presented to and adopted by the AFCOM/Board annually. No audit will be initiated unless it is either included in the adopted audit plan or subsequently approved by the AFCOM/Board.

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circulated to all auditees prior to the exit conference. Draft reports are considered unofficial working papers, subject to revisions and will, therefore, remain restricted, in use and distribution, to the IA and auditees. Responses to audit recommendations reflected within the draft reports will be prepared by management and submitted to the Chief Audit Executive within 10 business days (depending on the urgency of the report). Management requests for response submissions subsequent to 10 business days will be at the discretion of the Chief Audit Executive or the AFCOM/Board. In general, responses should include:

• Whether management agrees or disagrees with the findings and recommendations;

• Corrective action plan;

• Target completion date for implementation. The CEO will be advised of any significant findings and recommendations for which there is disagreement between management and the IA concerning fact, finding, or recommendation. Responses to audit recommendations will be incorporated into the final report. CEO’s signature indicating his/her review and acknowledgement of the final report will be requested and included in the report. The final audit report will be issued to all auditees and presented and distributed to AFCOM/Board.

1.6 Follow-up Review One of the primary responsibilities of professional internal auditors is determining that the auditee takes corrective actions on audit recommendations. Periodic follow-up communications will therefore be conducted with management after the issuance of an audit report until all recommendations have been satisfactorily addressed. The Chief Audit Executive shall seek AFCOM/Board approval to close out any corrective action items when the originally proposed corrective action is not implemented. This typically occurs if: i. Management decides to accept the risk and not implement the corrective action; or ii. The corrective action no longer applies due to a significant change in the process.

1.7 Special Audit Requests From time to time, the AFCOM/Board or the CEO may request special audits or consulting services from IA to review projects, programs or activities. IA will allocate a portion of time specifically to these requests within its annual audit plan. Special Requests made by the CEO should be made to the IA in writing with a clearly stated objective and the AFCOM/Board should be notified of the Special Audit Requests. If the Special Audit Requests will result in significant changes to the Annual Audit Plan Reports, the AFCOM/Board should be informed. Reports issued, if any, pursuant to

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these requests will be provided to the AFCOM/Board.

1.8 Fraud, Illegal Acts, Violations of Provisions of Contracts or Grant Agreements, Waste or Abuse Investigations Fraud encompasses an array of irregularities and illegal acts characterized by intentional deception. It can be perpetuated for the benefit or detriment of individuals and the Authority. It can be committed by anyone at the Authority, no matter what level, and can be done by persons outside the Authority acting alone or in collusion with others inside or outside the Authority. GAGAS prescribes requirements for reporting on noncompliance with provisions of laws, regulations, contract, grant agreements and instances of fraud. The IA operates a confidential hotline in coordination with the Legal Department for the Authority’s employees, contractors, and other interested parties to report fraud, waste and abused affecting the Authority’s resources. The Employee Hotline Reporting Policy is provided in Policy 1.2.

1.9 Access to Records All employees will cooperate fully in making available material or information requested by an internal auditor. The IA will have no direct operational responsibility or authority over any of the activities audited.

1.10 External Audits and Other Engagements All external audits and other external engagements of SCRRA conducted by the federal, state, or local officials will be coordinated through or with the Chief Audit Executive of the IA. Other external engagements may be in the form of reviews, agreed upon procedure, examination, etc. When a department is notified by the outside auditors of an impending audit or other external engagements, the department head should immediately contact the Chief Audit Executive and forward a copy of the notification letter to the Chief Audit Executive. The IA will notify the AFCOM/Board and the CEO regarding the initiation of any required external audits or other external engagements by independent third parties. Full copies of external audit reports will be included in Board Agendas. Report copies of other external engagements (i.e. Reviews, Agreed Upon Procedures, Examinations and other) will be available upon request. Audit and other external engagement recommendations and the status of corrective actions are reported to the Board on a periodic basis. Corrective actions requiring cash outlay above the CEO’s delegated authority as prescribed in the Procurement and Contracting Policies Section 3, should require Board approval. IA will coordinate with management to present the corrective actions for Board approval before implementing the corrective actions.

1.11 Audit Provision in Contracts and Agreements The Purchasing, Contracts, and Contract Compliance Department will ensure that

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provision is made in all contracts and agreements for examinations by the IA of the counterparty's books and records relating to such contracts and grant agreements.

2.0 DEFINITION OF TERMS External Audits and Other Engagements – External Audits of SCRRA or other external engagements (i.e. review, examination, agreed upon procedures, or other) being conducted by a government or other legal entity that is independent of SCRRA. External audits also include financial audits of SCRRA’s financial statements and accompanying disclosures which are conducted by an independent auditor on an annual basis. Internal Audits – Internal Audits are typically identified as Performance Audits meaning that it is an Independent, objective assurance activity designed to add value to improve SCRRA’s operations by SCRRA’s IA Department. Special Audit Requests - These services may include, but are not limited to, requests for advice regarding the establishment of new or revised operational procedures, questions on best practices or guidance in policy and procedures.

3.0 RESPONSIBILITIES Chief Audit Executive The Chief Audit Executive has overall responsibility for the IA. The Chief Audit Executive reports functionally to the AFCOM/Board and administratively (i.e., day-to-day operations) to the CEO.

4.0 REFERENCES 4.1 Government Auditing Standards promulgated by the Comptroller General of the United States (GAGAS), commonly referred to as the "Yellow Book".

4.2 Mandatory elements of the Institute of Internal Auditors' (IIA) International Professional Practices Framework, including the Core Principles for the Professional Practice of Internal Auditing, the Code of Ethics, the International Standards for the Professional Practice of Internal Auditing (Standards), and the Definition of Internal Auditing. These Standards are commonly referred to as the "Red Book."

5.0 POLICY HISTORY June 12, 2105 New Policy and Procedures document approved October 27, 2017 Updated to reflect changes in the Internal Audit Charter and to improve and clarify audit protocols Updates made to reflect changes for a.) providing external audit reports to the Board of Directors; b.) identifying management’s responsibilities for creating and addressing corrective actions and situations where corrective actions may need board approval; and c.) General housekeeping updates and changes to keep the policy in alignment with the evolving business practices of the Agency as well as changes to Auditing Standards.

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Approvals Senior Manager, Audit Legal Counsel Chair, Board of Directors

Page 6 of 6 172 ITEM 12.N

ITEM ID: 2020-49-

TRANSMITTAL DATE: September 4, 2020

MEETING DATE: September 25, 2020

TO: Board of Directors

FROM: Elisabeth Lazuardi, Senior Manager Internal Audit

SUBJECT: Contract Audit: Project Cost Management: AV Line - Tunnel 25 Track Repairs Project No. 591901 (2020-10-CA)

Issue

The Internal Audit Department (Internal Audit) completed the Contract Audit: Project Cost Management - AV Line – Tunnel 25 Track Repairs Project No. 591901.

Recommendation

AUDIT AND FINANCE COMMITTEE received and filed this report.

Strategic Goal Alignment

This report aligns with the strategic goal to improve organizational efficiency by providing recommendations to improve project costs management processes and internal controls.

Background

This audit was included in the FY 2020 Internal Audit Annual Plan approved by the Board of Directors on June 28, 2019.

Discussion

The objective of this audit was to determine whether internal controls and processes used in

173 the Project Cost Management function are adequate and follow internal policies and procedures. The audit was designed to review the risks associated with the project cost management of Tunnel 25 track repairs. The audit resulted in two findings and two recommendations as detailed in the attached audit report.

Management agreed with the findings and recommendations presented in the report and developed corrective actions to address the findings.

Next Steps

Internal Audit will track the progress of the corrective actions developed by management.

Prepared by: Elisabeth Lazuardi, Senior Manager, Audit

Attachment(s)

Attachment A - Audit Report - 2020-10-CA_AV Tunnel Final

174

Project Cost Management: AV Line - Tunnel 25 Track Repairs, Project No. 591901 (2020-10-CA) Southern California Regional Rail Authority (SCRRA)

Internal Audit Department

Project Cost Management: AV Line - Tunnel 25 Track Repairs Project No. 591901

Audit Report No. 2020-10-CA Date: September 4, 2020 Southern California Regional Rail Authority (SCRRA)

Internal Audit Department

Presented to: Board of Directors and Audit and Finance Committee

Prepared by: Elisabeth Lazuardi, CPA, Senior Manager, Audit David Rogers, CPA, Senior Auditor Beni Warshawsky, Audit Consultant, BCA Watson Rice

Distributed to: Stephanie Wiggins, Chief Executive Officer Eric Hosey, Chief Operations Officer Justin Fornelli, Chief Program Delivery Jennifer Vides, Chief Marketing and Communications Officer Arnold Hackett, Interim Chief Financial Officer 175

Project Cost Management: AV Line - Tunnel 25 Track Repairs, Project No. 591901 (2020-10-CA)

EXECUTIVE SUMMARY

The Internal Audit Department (Internal Audit) completed Audit (2020-10-CA) Project Management: AV Line - Tunnel 25 Track Repairs as part of the FY 2020 Annual Internal Audit Plan.

Metrolink’s Tunnel 25 is located on the Antelope Valley Line in the city of Santa Clarita and portions of unincorporated Los Angeles County. The tunnel was originally built in 1876 and is 6,976 feet long and requires major rehabilitation work approximately every 25 to 30 years due to its length and elevation. While Metrolink is currently preparing plans to perform a major rehabilitation of Tunnel 25, various upgrades and rehabilitation work, such as Project 591901, has been conducted to preserve the condition of the track within the tunnel.

Project 591901 consisted of critical trackwork in Tunnel 25 during October/November 2018 which include the following: • The replacement of approximately 1,600 ties • Track vacuuming • Ballast removal and replacement • Track surfacing

The objective of this audit was to determine whether internal controls and processes used in the Project Cost Management function are adequate and follow internal policies and procedures. The audit was designed to review the risks associated with the project cost management of Tunnel 25 track repairs. The audit period was from July 1, 2018 through June 30, 2019.

SUMMARY OF FINDINGS • Finding 1 Work initiated prior to the establishment of commitments in Oracle R12

• Finding 2: Project Time Management Process Needs Improvement

i 176 Project Cost Management: AV Line - Tunnel 25 Track Repairs, Project No. 591901 (2020-10-CA)

RECOMMENDATIONS 1. Supervisory enforcement of requisitioning requirements for commitments and funding and ensure that employees are aware and knowledgeable of requirements in place on when the use of requisitions is appropriate.

2. We recommend that management improve processes to enforce project managers to better monitor and track charges being made to projects by outlying departments. Process improvements could include: i. More robust budgeting guidelines at the onset of projects for outlying departments; ii. Consistent communication from Management on the importance of properly charging time to projects; iii. Consistent inspection of budgeted to actual hours by Project Managers on projects; iv. Incorporate adherence to established processes to all PM’s performance evaluations to ensure compliance and provide accountability. v. Training to all support staff on how to correctly complete timesheets to bill accurately to capital projects (Payroll).

REVIEW OF REPORT We discussed our findings and recommendations with SCRRA management. SCRRA management indicated agreement with the audit findings and recommendations and has developed a corrective action plan to address the recommendations.

Internal Audit thanks Programs Delivery and Operations management and staff for their assistance and cooperation during our audit. If you have any questions or comments, please contact Elisabeth Lazuardi, Senior Manager, Audit at (213) 452-0335 or [email protected].

ii 177 Project Cost Management: AV Line - Tunnel 25 Track Repairs, Project No. 591901 (2020-10-CA)

Table of Contents

EXECUTIVE SUMMARY………………..…...………...………….……………………………...I SUMMARY OF FINDINGS ...... I RECOMMENDATIONS ...... II REVIEW OF REPORT ...... II

INTRODUCTION ...... 1 BACKGROUND ...... 1 AUDIT OBJECTIVES ...... 2 AUDIT SCOPE ...... 2 AUDIT METHODOLOGY ...... 2 CONCLUSION ...... 3

FINDINGS, RECOMMENDATIONS, AND MANAGEMENT RESPONSES ...... 4 FINDING 1..…………...…………..….…………….….……………………………………....4 FINDING 2..…………………………………………….……………………………...………7

GLOSSARY of ACRONYMS

Acronyms Definition AV Antelope Valley CPMM Contract Procurement & Materials Management PBR Project Budget Reallocation PM Project Manager PMO Program Management Office SCRRA Southern California Regional Rail Authority – Metrolink SOP Standard Operating Procedure CPMM Contract Procurement & Materials Management

178 Project Cost Management: AV Line - Tunnel 25 Track Repairs, Project No. 591901 (2020-10-CA)

INTRODUCTION The Internal Audit Department conducted audit of the Project Cost Management: AV Line - Tunnel 25 Track Repairs. This audit was included in the Fiscal Year 2020 Audit Plan approved by the Board of Directors.

BACKGROUND

Project Cost Management is the process of defining how the project costs are estimated, budgeted, managed, monitored and controlled. The key benefit of this process is that it provides guidance and direction on how the project costs are managed throughout the project. The Southern California Regional Rail Authority (SCRRA) has various policies and procedures in place that govern the project cost management process: • Program Management Office, Standard Operating Procedure PC-4.0 “Cost Management” • Project Management Manual “PM Desk Book” • Finance Policy FIN 1.2 “Budget Control & Reporting” • Business Management “Invoice Processing Procedures” • SCRRA Procurement and Contracting Procedures Manual Section 4.2

Metrolink’s Tunnel 25 is located on the Antelope Valley Line in the city of Santa Clarita and portions of unincorporated Los Angeles County. The tunnel was originally built in 1876 and is 6,976 feet long and requires major track rehabilitation work (complete removal and replacement of the track - rail, ties, and fastenings, track substructure, and track drainage system) approximately every 25 to 30 years due to the accelerated deterioration of these track elements inside of a long, wet tunnel with constrained space. The last major track rehabilitation in Tunnel 25 occurred in the mid-1980’s and per discussions with management the cyclic major track rehabilitation is significantly overdue. While Metrolink is currently preparing plans to perform a major rehabilitation of Tunnel 25, various upgrades and rehabilitation work, such as Project 591901, has been conducted to provide short term limited repairs to preserve the condition of the track within the tunnel until the major rehabilitation work can be funded and performed

Project 591901 consisted of critical trackwork in Tunnel 25 during October/November 2018 and was needed to preserve the condition of the track within the tunnel and on the approaches until major permanent road work is funded and completed.

The Project consisted of the following: • The replacement of approximately 1,600 out of 4,500 ties • Track vacuuming of cribs and shoulders of approximately 10,000 linear feet • Ballast removal and replacement approximately 2,100 out of 8,000 cubic yards • Track surfacing of approximately 11,000 feet

179 Project Cost Management: AV Line - Tunnel 25 Track Repairs, Project No. 591901 (2020-10-CA)

OBJECTIVES, SCOPE, AND METHODOLOGY

AUDIT OBJECTIVES The objectives for the audit are to determine whether internal controls and processes used in the Project Cost Management function are in place and follow internal policies and procedures.

Our audit objectives were aligned with the following SCRRA Strategic Goals:

• Goal 2: Achieve fiscal responsibility • Goal 7: Improve organizational efficiency

AUDIT SCOPE The audit was designed to review the risks associated with the cost management of Tunnel 25 track repairs. We reviewed the estimating, budgeting, resource procurement and monitoring of project costs and performance during the period of July 1, 2018 through June 30, 2019.

AUDIT METHODOLOGY

The testing methodology utilized to achieve the audit objectives included: • Obtain a download of project 591901 detailed costs (population used for detailed invoice testing); • Summarized detailed project costs by: o Contractor o Funding Source o Invoice and applicable requisition • Selected a total of 16 invoices representing $1,187,374 of project costs (a majority of total charged costs); • Conducted detailed invoice testing which included: o Review invoices for work performed and determine if work preceded requisitions in Oracle System as required under SCRRA policy; o Review invoices to determine accuracy of charges and agreement with project costs detail; o Review invoices to determine if equipment was purchased that requires capitalization under SCRRA capitalization policy

2 180 Project Cost Management: AV Line - Tunnel 25 Track Repairs, Project No. 591901 (2020-10-CA)

• Review of Project supporting documentation to determine that: o Cost monitoring practices were followed; o PMO reporting module was updated in a timely and accurate fashion; o Grant funding procedures were properly followed; o Commitments/Requisitions were established prior to contractors starting work; • Interviews and inquiries with key staff and managers involved with the project including: o Project Manager o Operations Staff o Business Analysts o Program Management Office personnel o Finance personnel o Information Technology o Communications • For all above procedures conducted consider that: o SCRRA Policies and Procedures as highlighted in the Background Section of this report were followed; and that o Adequate Internal controls are in place;

We conducted this performance audit in accordance with generally accepted government auditing standards and in conformance with the International Standards for the Professional Practice of Internal Auditing promulgated by the Institute of Internal Auditors. Those standards require that we plan and perform the audit to obtain sufficient and appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives.

CONCLUSION Based upon the results of the testing performed within the scope of the audit, internal control process improvements, adherence to policies currently in place, and consistent training updates were identified as being needed.

3 181 Project Cost Management: AV Line - Tunnel 25 Track Repairs, Project No. 591901 (2020-10-CA)

FINDINGS, RECOMMENDATIONS, AND MANAGEMENT RESPONSES

Finding 1: Work initiated prior to the establishment of commitments in Oracle R12

Criteria • SCRRA Program Management Office Standard Operating Practice (SOP) PC-4.0 Cost Management Responsibilities Section defines the Project Manager (PM) responsibilities as follows “PM is responsible for establishing and managing project budget, estimate at completion, project contingency, and project risk. The PM must also: develop and maintain month-by-month expenditure plans and actual expenditures, develop and document all changes to Project Budget, including PBR’s; initiate and address adverse cost trends; prepare PM Progress Reports.”

• SCRRA Project Management Desk Manual Section 3.1 Qualifications and Training indicates “Project Managers must receive training on how to use the Metrolink Project Manual and all supporting forms and documents. This training is conducted and/or coordinated by the Project Management Office (PMO). Training must be refreshed bi-annually or as determined by the Executive Leadership Team.

• SCRRA Project Management Desk Manual Section 3.4.1 Project Ownership/Culture requires all the necessary reports are correct and on time.

• SCRRA Procurement and Contracting Procedures Manual Section 4.2 which states “Generally, all requested procurement/contract actions that will result in binding the Authority financially, regardless of dollar value, must start with an approved requisition in the Authority’s Financial Information System. It is the responsibility of the PM to ensure that funding is available within the requesting Department’s approved budget. Submission of an approved requisition must be done far enough in advance of the date when the good/services are needed or when the procurement action must be executed to allow the CPMM Department and Contractors enough time to complete the required procurement steps and allow for appropriate delivery times.”

Condition Instances were noted in which work was initiated prior to the establishment of requisitions and commitments:

• Loram Maintenance of Way Contract MS275-17 Loram is a rail maintenance and grinding services contractor used to remove and re- profile ballast on Tunnel 25. Loram was allowed to proceed with approximately $326,000 of work beginning in early October 2018 prior to receiving requisition approval which wasn’t granted until mid-December 2018; of which approximately $173,000 lacked adequate budget authority and required a subsequent PBR to allow

4 182 Project Cost Management: AV Line - Tunnel 25 Track Repairs, Project No. 591901 (2020-10-CA)

payment. The $173,000 was composed of two invoices one invoiced November 2018 which was paid in April 8, 2019 approximately five months later and another invoiced in December 2018 which was paid in March 2019 approximately four months later.

Additionally, Contract MS275-1, Article 12 NOTIFICATION requires any notice regarding work to be performed under the contract shall be in writing, signed and dated. There was no required signed documentation provided to IA however. Only an email was provided from the PM directing the work. In addition, there was no agreed price on the email including the RailVac mobilization charge of $36,359.

• Planned Bus Bridge and Associated Train Contractors For Metrolink to maintain service during the Tunnel 25 rehabilitation, a total of five contractors were required create a bus bridge around the closed tunnel; three bus contractors and two train contractors. Oracle identified total cost of $266,357 cost for the five contractors involved in providing the bus service and additional trains required to maintain operation. (See Table 1 below)

Table 1 Contractor Amount BOMBARDIER MASS TRANSIT CORPORATION $ 26,307 H & L CHARTER CO., INC. 17,316 INLAND EMPIRE STAGES, LTD. 98,573 NATIONAL RAILROAD PASSENGER CORPORATION 54,453 TRANSIT SYSTEMS UNLIMITED INC. 69,708 Total $ 266,357

We were informed by Operations that the Planned Bus Bridge initiation process allows for work to be ordered in advance of requisitions and are only entered into the system after invoices are received. This was confirmed by our sample of bus bridge contractors’ requisitions where we found in our sample that the dates the work performed preceded the requisition date. We were also informed that contractor cost estimates are rarely obtained and if requested the estimate is usually verbal or in a short email.

Cause Lack of supervision enforcement and staff knowledge of requirements currently in place were responsible for the conditions cited.

Effect Failure to adequately establish commitments in Oracle R12 prior to the services being received resulted in expenses that exceed the established budget and/or available funding.

Recommendations 1. Supervisory enforcement of requisitioning requirements for commitments and funding and ensure that employees are aware and knowledgeable of requirements in place on when the use of requisitions is appropriate.

5 183 Project Cost Management: AV Line - Tunnel 25 Track Repairs, Project No. 591901 (2020-10-CA)

Management Response Track & Structure: Management Agrees. Senior staff had a sense of urgency to complete the project because of deteriorating conditions in the tunnel. Also, with the limited availability of additional specialized equipment such as Loram, senior management instructed staff to proceed with the project. Since the completion of this project, there has been changes to senior staff and management will increase oversight and ensure accountability that Project Managers are complying with PMO SOP’s.

Communications: Management agrees. Mirroring the urgency of the Track & Structure Team, the Communications Desk – then a part of Operations – began coordinating the bus bridge in the fashion they would typically coordinate an unplanned bridge. Now under Communications, Communications Desk management has begun developing a Standard Operating Procedure to address the differences and guide process and decisions going forward.

Corrective Action Plan Track & Structure: i. Review this Finding with Track and Structures staff to ensure understanding and expectation of accountability

ii. PMO to provide Bi-Annual Refresher Training.

iii. Assistant Director – Track and Structures to monitor PM activities to ensure compliance, taking appropriate action as necessary.

iv. Hold monthly meetings with Department’s responsible for providing services such as Bus Bridges and Train Services on projects where service is impacted in order to allow the Project Manager and associated departments to better track project costs. Clarify the eligibility of non-federalized contract costs incurred against federalized contracts. The meetings and results of the meetings will be documented and saved in the project files.

Communications: Communications Desk management recently worked with Contracts and Compliance, along with Finance, to correct and update the procedures they must follow in securing buses for planned service interruptions. This includes obtaining a Purchase Order through Oracle before the services are secured and provided. Communications Desk Manager Scott Johnson will work with the Communications Desk Supervisors to create by September 15, 2020 the SOP to guide these activities. Training for the team is scheduled for the first week of September.

6 184 Project Cost Management: AV Line - Tunnel 25 Track Repairs, Project No. 591901 (2020-10-CA)

Target Implementation Dates September 1, 2020: Operations September 15, 2020: Communications

Responsible for Implementation Wayne Mauthe, Assistant Director, Track & Structure Kelly Fernandez, Program Management Analyst

Sherita Coffelt, Director Communications Scott Johnson, Senior Customer Engagement Representative

Accountable for Implementation Eric Hosey, Chief Operating Officer Justin Fornelli, Chief, Program Delivery Jennifer Vides, Chief Marketing & Communications Officer

Finding 2: Project Time Management Process Needs Improvement

Criteria • United States Government Accountability Office, Standards for Internal Control in the Federal Government, Principle 10.03 Management designs control activities to help management fulfill responsibilities and address identified risk responses with regard to proper execution of transactions and physical controls over vulnerable assets.

Condition Instances were noted where SCRRA employees were charging time to the project without adequate project manager prior knowledge.

During our review we noted that a total of 18 SCRRA employees charged $125,750 to the project. Of which, 12 employees from Non-Operations who charged $53,470 (see Table 1 below).

Table 1 Non-Operations and Non-Project Departments Number of Department Amount Employees Communications $ 14,383 4 Customer Relations 38,876 7 Contracts 211 1 Totals $ 53,470 12

An additional 6 employees from Operations and Project Department staff charged $72,280 as summarized below in Table 2:

7 185 Project Cost Management: AV Line - Tunnel 25 Track Repairs, Project No. 591901 (2020-10-CA)

Table 2 Operations and Project Departments Number of Department Amount Employees PMO $ 4,136 2 Operations 67,512 3 Business Administration 632 1 Totals $ 72,280 6

Considering that over $100,000 was charged by 18 employees as reflected in Tables 1 and 2, Internal Audit asked the PM the following questions, “How do you know which SCRRA employees are allowed to charge to your project? How do you control to make sure there are no inappropriate charges?” The PM indicated that there may be employees from finance, contracts or the PMO that may charge to the job and with staff turnover, he does not always know who these people are. He indicated that he does periodically check but does not actively disallow charges to his projects.

While no inappropriate time charges were noted, it appeared that there was a lack of accountability placed on the project manager with respect to monitoring time charged to the project. As such Internal Audit discussed this concern further with Management. Based on those discussions there was a consensus that this concern extended beyond this project and that process improvements were needed to the overall time management monitoring process on projects.

Cause Processes in connection with monitoring and tracking charges being made to projects by outlying departments is lacking. PM not being held accountable to ensure that charges made to the project are accurate.

Effect Significant budget variances can occur due to lacking project costs monitoring. Budget variances can include either project overruns or instances where projects are being undercharged impacting SCRRA indirect rates.

Recommendations 2. We recommend that management improve processes to enforce project managers to better monitor and track charges being made to projects by outlying departments. Process improvements could include: i. More robust budgeting guidelines at the onset of projects for outlying departments; ii. Consistent communication from Management on the importance of properly charging time to projects; iii. Consistent inspection of budgeted to actual hours by Project Managers on projects;

8 186 Project Cost Management: AV Line - Tunnel 25 Track Repairs, Project No. 591901 (2020-10-CA)

iv. Incorporate adherence to established processes to all PM’s performance evaluations to ensure compliance and provide accountability. v. Training to all support staff on how to correctly complete timesheets to bill accurately to capital projects (Payroll).

Management Response Management Agrees.

Corrective Action Plan 2a. i-iv Project Delivery: Prior to the FY22 capital budget development, staff will update the guidance to project managers on the project budgeting process to include all relevant project expenses, including but not limited to staff time, flagging, and bus bridges. As part of the bi-annual PMO training, PMs will be instructed to remind support staff during the project kick-off meeting and subsequent planning meetings to review the budget plan and accurately bill their time to the project. In addition, during the PMO bi-annual training, PMs will be directed to review their project expenditures as shown in the PM Module to ensure accurate billing by support staff.

Operations: The importance of consistent communication, properly charging time to projects, and inspection of budgeted to actual hours by Project Managers will be performed as part of the Project Managers’ monthly meetings (see Corrective Action Plan v. from Finding 1). In addition, effective immediately (FY 21), Operations will utilize the NeoGov System on performance evaluations of Project Managers to document compliance with established processes in connection with this corrective action.

2a v. Payroll will partner with HR to train all employees on entering time into Empower time keeping system. Continuous training on time entry will also be included during onboarding procedures.

Target Implementation Dates i. & ii.) October 31, 2020 iii.) October 31, 2020 to begin PMO Bi-annual training iv.) Effective Immediately v.) Time sheet training: o Onboarding – September 1, 2020 o Devise plan with HR to provide training to all employees – September 1, 2020

Responsible for Implementation Steve Holman, Senior Manager Business Operations Wayne Mauthe, Assistant Director Track and Structure Alex Barber, Senior Manager General Accounting

9 187 Project Cost Management: AV Line - Tunnel 25 Track Repairs, Project No. 591901 (2020-10-CA)

Accountable for Implementation Justin Fornelli, Chief, Program Delivery Eric Hosey, Chief Operations Officer Arnold Hackett, Interim Chief Financial Officer

10 188 Project Cost Management: AV Line - Tunnel 25 Track Repairs, Project No. 591901 (2020-10-CA)

Reviewed and acknowledged by:

September 4, 2020 Stephanie Wiggins Date Chief Executive Officer

11 189 ITEM 12.O

ITEM ID: 2020-83-0

TRANSMITTAL DATE: September 4, 2020

MEETING DATE: September 25, 2020

TO: Board of Directors

FROM: Internal Audit Department

SUBJECT: Fiscal Year (FY) 2020 Internal Quality Assurance Review

Issue

The Internal Audit Department (Internal Audit or IA) completed the FY 2020 Internal Quality Assurance Review (QAR) for the period of July 1, 2019 through June 30, 2020.

Recommendation

AUDIT AND FINANCE COMMITTEE received and filed this report.

Strategic Goal Alignment

This report aligns with the strategic goal to improve organizational efficiency. The annual quality assurance review will help IA to identify areas of improvement to ensure compliance with auditing standards.

Background

Internal Audit is required by the Internal Audit Charter to follow the Government Auditing Standards (GAGAS) and Institute of Internal Auditors’ International Standards for the Professional Practice of Internal Auditing (IIA Standards) (auditing standards) in its operations and when conducting audit activities.

190

The auditing standards (GAGAS Chapter 5: Quality Control and Peer Review and IIA Standards 1300 – Quality Assurance and Improvement Program ) require that Internal Audit develop and maintain a Quality Assurance and Improvement Program (QAIP) that includes internal and external assessments of the department.

Discussion

On an annual basis, Internal Audit self-performs an internal Quality Assurance Review (QAR) and presents the result to the Audit and Finance Committee (AFCOM)/Board. In August 2020, Internal Audit completed the internal QAR for FY 2020. The external quality control review (External Peer Review) was performed in February 2020, and in April IA reported to the Board that there were no reportable findings as a result of this review.

Objectives

The overall objective of the internal QAR was to determine whether Internal Audit’s internal quality control system was in place and operating effectively to provide reasonable assurance that the Internal Audit Charter, Internal Audit Policies and Procedures, and applicable auditing standards were followed. Specifically, the review determined whether:

Internal Audit established and implemented appropriate methods, policies, and procedures to conform with IIA Standards and comply with Government Auditing Standards for performance audits; and Internal Audit’s methods, policies, and procedures were operating effectively for auditors, during the performance of an audit, to conform and comply with applicable auditing standards.

Our review included the evaluation of two engagements selected from five performance audits. The review also included evaluation of the Internal Audit Charter and Internal Audit Policies and Procedures to determine if updates were necessary to comply with the recently updated auditing standards. In September 2020, an updated Internal Audit Policy will be presented for Board approval. The FY 2020 internal QAR covered internal audit engagement reports issued during the period of July 1, 2019 through June 30, 2020. The review was performed by Andrew Hong, Senior Auditor of Internal Audit.

Conclusion

Internal Audit followed established policies and procedures and applicable auditing standards in conducting the performance audits. Areas for improvement are as follows:

1. Evaluate and document the effect of initiated or in process investigation or legal proceedings in the planning phase.

191 2. Use of the five components of internal control (control environment, risk assessment, control activities, information and communication, and monitoring) and the integration of the components should be included during the planning stage.

Internal Audit management already implemented all recommended improvements.

Next Steps

Internal Audit will continue to monitor the implementation of the recommended improvements.

Prepared by: Andrew Hong, Senior Auditor

Approved by: Elisabeth Lazuardi, Senior Manager, Audit

192 ITEM 12.P

ITEM ID: 2020-93-0

TRANSMITTAL DATE: September 4, 2020

MEETING DATE: September 25, 2020

TO: Board of Directors

FROM: Elisabeth Lazuardi, Senior Manager, Internal Audit

SUBJECT: Fiscal Year 2020 Annual Audit Activities Review

Issue

Staff provides an annual reporting to the Board as required by the Internal Audit Charter.

Recommendation

AUDIT AND FINANCE COMMITTEE received and filed this report.

Strategic Goal Alignment

This report aligns with the strategic goal to improve communications to customers and stakeholders. The annual reporting of audit activities will keep the Board informed of Internal Audit’s productivity.

Background

The Internal Audit Department (Internal Audit) provides independent, objective assurance, and consulting services to the Authority. In conducting its day to day operations, Internal Audit is governed by the Board approved Internal Audit Charter, Internal Audit Policies & Procedures (IA-1.1), and Employee Hotline Reporting Policy (IA-1.2). Internal Audit also follows the

193 Government Auditing Standards issued by the Comptroller General of the United States and the International Standards for the Professional Practice of Internal Auditing (IIA Standards), promulgated by the Institute of Internal Auditors.

Discussion

Review of Internal Audit Charter & Policies

Internal Audit reviews the charter and policies for changes on an annual basis and presents them to the Audit and Finance Committee and Board for approval if there are changes needed to be made. Internal Audit made updates to the policy IA-1.1. The updated policy will be presented to the Audit and Finance Committee and Board for Board approval.

Reporting Organizational Independence

Auditing standards require that internal auditors be independent in fact and appearance with respect to the entities for which they perform audit services. The Internal Audit function is organizationally independent, reporting functionally to the Audit and Finance Committee and Board, and administratively to the Chief Executive Officer. Staff is confirming our independence for Fiscal Year 2020.

Fiscal Year 2020 Annual Internal Audit Plan and Internal Audit Activities Summary

1. Internal Audits – Conducted performance audits in accordance with the Board approved Fiscal 2020 Annual Audit Plan (see Attachment A). 2. Contract Audits – Conducted audits on specific Authority contracts to evaluate that the internal controls over contract administration and contract management are adequate. Contract audits may also include an evaluation of processes and procedures in place within the overall contracting function or related to project management (see Attachment A). 3. External Audits – Served as audit liaison by coordinating and monitoring external audits, including those conducted by independent financial statement auditors and state and federal officials. FY 2018-19 Comprehensive Annual Financial Report (CAFR) Audit and FY 2018- 19 Single Audit FY 2018-19 Agreed Upon Procedures – Annual National Transit Database (NTD) Compliance Examination - Memorandum of Understanding (MOU) with Los Angeles County Metropolitan Transportation Authority (LACMTA) for FY 2018-19 FY2019 Federal Transit Administration Triennial (FTA) Triennial Review Orange County Transportation Authority (OCTA) and Riverside County Transportation Commission (RCTC) FTA Subrecipient Triennial Review California Public Employees' Retirement System (CalPERS) Review of temporary upgrade pay 4. Special Request Audits – See Attachment A. Central Maintenance Facility (CMF)

194 Operations, System Safety Program Data Management and HR Employee Exit Process are special request audits. From time to time, the Audit and Finance Committee/Board or the CEO may request special audits to review projects, programs, or activities. 5. Monitoring (Corrective Action) – Monthly follow-up on implementation of audit recommendations (internal and external audits) and until all recommendations have been satisfactorily addressed. Activities included: Review of support provided by management to close out corrective actions; Meetings with management regarding pending items and deadlines; Various team coordination to address shared corrective actions/process; Monthly status reporting to the executive management; Quarterly updates to the Board of Directors on the status of corrective actions. 6. Conducted the annual Authority-wide risk assessment and developed Fiscal Year 2021 Annual Internal Audit Plan for Board approval. 7. Ethics Hotline - Provided administration of Ethics Hotline in collaboration with Legal. Reviewed and referred complaints, as appropriate. There were no cases in FY 2020 (see Table 2). 8. External Quality Control Review –The Association of Local Government Auditors (ALGA) performed an external quality control review for the Internal Audit Department in February 2020. There were no reportable findings as indicated in the report presented to the Board in April 2020. 9. Internal Audit Administration – Participation and preparation for meetings (Board of Directors, Audit and Finance Committee, Executive Leadership Team, various staff meetings), on-going On-Call Audit Services contract management, completion of training as part of the Continuing Professional Education requirement by the auditing standards. FY 2020 actual administration hours are significantly higher than the projected hours. Several factors contributing to the increase include CMF audit related activities (community survey and audit findings presentation at the community meeting), audit committee meeting frequency after the restructure, more staff meetings in general since March 2020 (transitioned to working from home), Internal Audit team building activities, and higher number of audit services task orders issued than anticipated.

Internal Audit Productivity Fiscal Year 2020

Internal Audit has four full time auditor positions. The organizational structure is as follows: one (1) Senior Audit Manager, two (2) Senior Auditor, and one (1) Auditor II.

Table 1 exhibits the analysis of the total annual available and productive work hours for Internal Audit for Fiscal Year 2020.

Table 1: Total Annual Available and Productive Work Hours

195 Projected Actual Calculation for Projected Hours Item Hours Hours (4 FTE) FY 2020 FY 2020 Total Annual Available 2,080 hours (per FTE) x 4 FTE 8,320 8,320 Less: Vacation, Jury Duty, 25 days (200 hours per FTE) x4 FTE (800) (815) and Bereavement Less: Holidays 10 days (80 hours per FTE) x 4 FTE (320) (320) Total Annual Productive 7,200 7,185 Work Hours

Table 2 demonstrates the allocation of the annual productive work hours for Internal Audit for Fiscal Year 2020.

Table 2: Allocation of the Annual Productive Work Hours

Projected Actual Productive Productive Audit Activity Work % Work % Hours FY Hours FY 2020 2020 (1) External Audits 400 5 659 9 (2) Internal Audits 610 9 617 8 (3) Contract Audits & Ongoing 800 12 548 7 Engagements (4) Special Requests Audits 1,400 19 1,191 17 (5) Monitoring (Corrective Action Tracking) 800 11 566 8 (6) Internal Audit Department Project (Risk Assessment, Annual Audit Plan, Internal 500 6 541 7 Quality Control Assessment, and IA Handbook Update) (7) Ethics Hotline 50 1 0 0 (8) External Quality Control Review (Peer 400 5 127 2 Review) (9) Internal Audit Administration 2,240 31 2,936 42 Total Annual Productive Work Hours 7.200 100 7,185 100

Prepared by: David Rogers, Senior Auditor Claudia Casasola, Auditor II

196 Approved by: Elisabeth Lazuardi, Senior Manager, Internal Audit

Attachment(s)

Attachment A - FY 2020 Annual Audit Activities

197 SCRRA - Internal Audit Department ATTACHMENT A FY 2019-20 Annual Audit Plan Update (As of 06/30/2020)

{A} {B} {C}={A}-{B} Planned Staff Under # Audit Activity Auditable Unit Description Staff Hours to Status (Over) Hours Date Internal Audits 1 Materials Inventory (2019-06-IA) Materials Management & Evaluate management processes over inventory ordering and receiving 100 134 (34) Completed Warehousing and review of general supply chain management/inventory monitoring

2 Cybersecurity Assessment of PTC Train Control PTC Train Control Identify weaknesses of existing critical infrastructure and evaluate 40 35 5 Completed - Corrective Systems (2019-10-IA) current controls if they are consistent with best practices Action Tracking

3 Central Maintenance Facility (CMF) Operations Equipment; Evaluate compliance with procedures established at the CMF to 400 527 (127) Completed - Corrective (2020-03-IA) Facilities & Fleet control and monitor pollution levels produced by operating activities at Action Tracking Maintenance CMF (Special Request Audit) 4 System Safety Program Data Management (2020- Safety, Security & Evaluate process to ensure inspections, violations, corrective actions 400 440 (40) Completed 04-SR) Compliance are properly tracked (Special Request Audit)

5 Networks Penetration Cybersecutiy Testing (2020- Information Technology; PTC Penetration testing of SCRRA networks - this audit is performed to 130 404 (274) Completed - Corrective 07-IA) Train Control; Fare address a finding in the Cybersecurity Assessment of PTC network audit Action Tracking Collections (PCI-DSS) (2019-10-IA) *Outsourced 6 HR Employee Exit Process (2020-05-SR) Human Resources Evaluate effectiveness of employee exit process 150 224 (74) In Process - Report (Special Request Audit) Writing * Outsourced 7 Operating Receivable and Third Party Deposit Finance Processes over tracking and collecting operating receivables and third 350 44 306 In Pocess - Planning (2020-14-IA) party deposits. 8 IT - Application Controls Information Technology Evaluate Business Application Controls of Assetworks Program 400 - 400 Not Initiated Total Hours - Internal Audits 1,970 1,808 162 Contract Audits 9 Change Orders, Contract Ammendments & Operations; Program Determine whether internal controls and processes used in the Change 40 18 22 Completed - Corrective Modifications (2019-07-IA) Delivery Order function are adequate Action Tracking

10 Contract Ammendment Process (2020-09-CA) Purchasing, Contracts & Evaluate process for amending contracts 200 240 (40) Completed - Corrective Material Management; *Outsourced/Co-sourced Action Tracking Operations 11 Project management - Tunnel work AV line (2020- Operations Project Cost Management processes over Tunnel work on the Antelope 200 179 21 In Process - Report 10-CA) Valley line Writing *Outsourced/Co-sourced 12 Contract Task Orders (CTO) - vendor selection Purchasing, Contracts & Evaluate controls in place for vendor selection process for issued 100 - 100 Not Initiated process Material Management; Contract Task Orders Program Delivery & (Special Request Audit) Operations * Outsourced/Co-sourced

198 SCRRA - Internal Audit Department ATTACHMENT A FY 2019-20 Annual Audit Plan Update (As of 06/30/2020)

Planned Staff Under # Audit Activity Auditable Unit Description Staff Hours to Status (Over) Hours Date 13 Contract Audits - C3124-15 (Vincent Grade/Acton Program Delivery Evaluate contract management/ administration process 200 - 200 Not Initiated Station Second Platform & Vincent Siding Extension) 14 Labor Cost Analysis as requested by Contracts for Various architectural & Agreed upon procedures as requested by Purchasing, Contracts & 100 111 (11) Ongoing cost proposals engineering contracts and Material Management request for proposals Total Hours - Contract Audits 840 548 292 Total Hours - Internal & Contract Audits 2,810 2,356 454

199 ITEM 12.Q

ITEM ID: 2020-88-0

TRANSMITTAL DATE: September 4, 2020

MEETING DATE: September 25, 2020

TO: Board of Directors

FROM: Stephanie Wiggins, Chief Executive Officer

SUBJECT: Capital Grant Update - Period from April 1, 2020 to June 30, 2020

Issue

Staff provided an update to capital grant acquisition, reprogramming and closeout activity for the period of April 1, 2020 to June 30, 2020.

Recommendation

AUDIT AND FINANCE COMMITTEE received and filed this report.

Strategic Goal Alignment

This report aligns to the strategic goals to maintain fiscal sustainability and invest in people and assets. The capital grant program helps to ensure reliable funding sources for maintaining the railroad in a State of Good Repair and adding capacity for increased reliability and future growth.

Background

The Authority applies for grants from federal, state, regional and local entities to assist in funding its rehabilitation and new capital programs. These programs are comprised of projects that rehabilitate, enhance and expand the Metrolink rail system.

This report focuses exclusively on federal, state and regional-level grant acquisition,

200 reprogramming and closeout activities undertaken by staff for the purposes of supporting the rehabilitation and new capital programs. It discusses grants that the Authority has secured through a formal application process and for which the Authority has a direct reporting relationship to the federal, state or regional-level granting agency.

Discussion

Grant Activity Summary for April 1, 2020 through June 30, 2020

Acquired (4) Reprogrammed (9) Closed (1) Grant Amount $25.5 million $1.5 million $2.4 million

1. The Authority acquired three federal grants and one state grant. The first grant was from the Federal Railroad Administration’s Consolidated Rail Infrastructure and Safety Improvements Program (CRISI) for $10.7 million to fund speed improvements at the Burbank Junction as well as safety improvements at three stations. The second grant was from the Federal Railroad Administration’s Federal-State Partnership for State of Good Repair Program for $6.8 million to fund rehabilitation of four bridges crossing the Arroyo Simi Channel. The third grant was for $21 thousand in federal formula funds to help to fund the FY20 adopted budget. Additionally, one state grant was awarded for $8 million from the Affordable Housing and Sustainable Communities Program for signal respacing in Orange County.

2. $1.5 million in state funding was reprogrammed.

3. One federal grant for $2.4 million was submitted for closure.

Grant Activity Detail

Acquisition

The Authority has acquired three federal grants totaling $17.5 million, one state grant totaling $8 million, and one federal grant submitted for closure, totaling $2.4 million.

The Authority currently manages 23 active federal grants totaling $312.8 million, 25 active state grants totaling $386.3 million and two active regional grants, totaling $101.9 million, for a grand total of $801.0 million.

Federal grants are summarized in Appendix A State grants are summarized in Appendix B, and Regional grants are summarized in Appendix C.

Reprogramming

This report describes reprogramming of projects from previously approved Rehabilitation and Capital Program budgets. Staff reprograms funds when projects are completed with savings or

201 when deferred or cancelled projects cannot make use of grant funds in a timely manner. A total of $1.5 million in state funds was reprogrammed consisting of $0.9 million for the Burbank Corridor Speed and Safety Improvements project and $0.6 million for development of a Mobile Ticketing App.

Closure

Grants are closed when all projects are completed within the work performance period allowed under the grant. The Authority submitted one federal PTC Interoperability grant for closure totaling $2.4 million.

Next Steps

If there are any new grant acquisitions, reprogramming or closure activities during the next quarter, it will be reported at the November 13, 2020 Board meeting.

Prepared by: Tom Schamber, Interim Director, Grants Vicky Au, Grants Funding and Reporting Administrator Jerri Stoyanoff, Senior Accountant

Approved by: Arnold Hackett, Interim Chief Financial Officer

Attachment(s)

Appendix A-C - BOD Capital Grant Activity Summary

202 APPENDIX A FEDERAL GRANTS REMAINING GRANT NUMBER GRANT PROGRAM CURRENT PRIMARY GRANT USE TOTAL GRANT AMOUNT BALANCE AMOUNT REIMBURSED June 30, 2020 CA-05-0205-00 Section 5309 Passenger car procurement and parts $ 5,258,845 $ 4,901,767 $ 357,078 CA-05-0223-01 Section 5309 Signal improvements $ 5,586,921 $ 5,544,488 $ 42,433 CA-05-0235-05 Section 5309 PTC and locomotive replacement $ 46,258,740 $ 42,805,267 $ 3,453,473 CA-05-0258-00 Section 5309 Signal and communication improvements and $ 8,891,620 $ 8,569,756 $ 321,864 locomotive replacement CA-05-0271-02 Section 5309 Locomotive replacement and rail car overhaul $ 21,228,712 $ 20,597,991 $ 630,721

CA-54-0014-05 Section 5337 Locomotive replacement and rail car overhaul $ 31,591,144 $ 28,946,839 $ 2,644,305

CA-54-0043-00 Section 5307 Locomotive replacement $ 12,106,922 $ 10,030,672 $ 2,076,250 CA-90-Y608-03 Section 5307 Signal and communication improvements $ 1,606,720 $ 1,605,592 $ 1,128

CA-90-Y687-04 Section 5307 Locomotive replacement and PTC $ 7,001,915 $ 5,553,369 $ 1,448,546 CA-90-Y934-00 Section 5307 Locomotive replacement, signal and $ 2,617,801 $ 2,363,078 $ 254,723 communication improvements CA-90-Y992-03 Section 5307 Locomotive replacement, signal and $ 8,173,372 $ 8,016,170 $ 157,202 communication improvements CA-2017-009-03 Section 5337 FY 2017 Metrolink System Rehabilitation & $ 84,769,765 $ 21,555,814 $ 63,213,951 Fare Collection System Upgrade CA-2017-085-01 Section 5337 5337 - Metrolink High Priority State of Good $ 8,867,332 $ 6,753,114 $ 2,114,218 Repair, inlcuing slope stabilization and tie replacement on the Orange Subdivision

CA-2018-033-00 FY17 FRA Section Positive Train Control (PTC) System $ 3,200,000 $ 2,055,757 $ 1,144,243 3028 Improvements CA-2018-136-00 Section 5307 Metrolink Passing Siding in South Orange $ 2,556,000 $ 1,953,408 $ 602,592 County CA-2019-137-00 CMAQ Metrolink Anaheim Canyon Station $ 10,000,000 $ 398,012 $ 9,601,988 Improvements - CMAQ CA-2020-004-01 Section 5307 San Fernando Road Bike Path Signal $ 5,312,000 $ - $ 5,312,000 Implementation CA-2020-009-00 Sections 5307 and Metrolink Preventive Maintenance - FY 2020 $ 17,806,108 $ 13,809,057 $ 3,997,051 5337 FR-CRS-0032-20 FY18 Consolidated Upscaling Key PTC Onboard and Wayside $ 9,440,000 $ - $ 9,440,000 Appropriations Act of Components 2018 TBD FY18 Consolidated Leveraging PTC to Increase Capacity and $ 3,150,000 $ - $ 3,150,000 Appropriations Act of Reduce Headways and Alternative Vendor 2018 Analysis TBD Section 5307 FY 2020 Metrolink Equipment $ 20,974 $ - $ 20,974 TBD FRA CRISI Burbank Corridor Speed & Safety $ 10,746,091 $ - $ 10,746,091 Improvements TBD FRA Fed-State Rehabilitation of Four Rural Bridges $ 6,570,000 $ - $ 6,570,000 Partnership TOTAL $ 312,760,982 $ 185,460,151 $ 127,300,831

203 APPENDIX B STATE GRANTS TOTAL GRANT AMOUNT REMAINING BALANCE GRANT GRANT PROGRAM CURRENT PRIMARY GRANT USE AMOUNT REIMBURSED June 30, 2020 Prop 1A High Speed Rail Commuter Rail 07A0052-08 Locomotive replacement 60,000,000 42,963,197 17,036,803 Connectivity, expires 4/30/2021 Prop 1A High Speed Rail Commuter Rail 07A0052-08 A3 Locomotive replacement 8,500,000 4,739,839 3,760,161 Connectivity, expires 9/30/2020 Prop 1A High Speed Rail Commuter Rail 07A0052-08 Rail Car Overhaul 20,207,000 9,858,663 10,348,337 Connectivity, expires 6/30/2022 Transportation Congestion Relief Fund, expires Replace Turnout at CP Beech on San Bernardino 08A0052-01 812,000 677,622 134,378 11/3/2020 Line Prop 1B Transit Security Grant Program, epxires Security enhancements in buildings and access 6061-0001 9,036,070 9,025,226 10,844 3/31/2021 gates Prop 1B Transit Security Grant Program, expires Tunnel surveillance, security enhancements in 6161-0001 8,214,070 7,870,933 343,137 3/31/2021 buildings and access gates Prop 1B Transit Security Grant Program, expires Surveillance cameras at stations, security 6761-0001 7,869,070 4,948,606 2,920,464 3/31/2022 enhancements in buildings and access gates Secure data network, security enhancements in Prop 1B Transit Security Grant Program, expires bulidings and access gates, security 6861-0001 6,869,070 1,949,496 4,919,574 3/31/2022 enhancements at comm shelters and control points Prop 1B Transit Security Grant Program, expires 6961-0001 Tunnel 25 upgrades and secure data network 6,295,000 169,531 6,125,469 3/31/2022 State Transportation Planning Adaptation Grant 74A1175 Systemwide Climate Vulnerability Mapping 520,000 - 520,000 expires 2/28/2022 75A0441 Prop 1B Intercity Rail Funds, expires 9/30/2020 Van Nuys Station Platform 30,500,000 26,326,059 4,173,941 Capitalized Maintenance Signal & Track 75A0469 Prop 1B Intercity Rail Funds, expires 11/4/2021 3,000,000 - 3,000,000 Modernization 75A0471 Prop 1B Intercity Rail Funds, expires 10/23/2021 Laguna Niguel - San Juan Capistrano Pass Siding 3,000,000 1,808,559 1,191,441 State Rail Public Transit Assistance, expires 75A0510 Early Earthquake Warning System 4,870,400 199,882 4,670,518 6/30/2022 Prop 1B Public Transportation, Modernization, Locomotive replacement and passenger car FY09-FY17 PTMISEA Improvement and Service Enhancement 55,903,509 46,303,949 9,599,560 overhaul Account, expires 6/30/2023

State Cap and Trade Low Carbon Transportation 16-17 LCTOP Ticket vending machines 938,926 - 938,926 Operations Program, expires 6/30/21

State Cap and Trade Low Carbon Transportation 17-18 LCTOP New rider ticket voucher program 2,029,192 712,645 1,529,193 Operations Program, expires 7/9/2022

State Cap and Trade Low Carbon Transportation 18-19 LCTOP Tamper, Stabilizer, Regulator 3,143,244 - 3,143,244 Operations Program, expires 7/9/2023 Track and signal upgrades at Los Angeles Union CALSTA SRA FY18-20 State Rail Assistance Program, expires 1/30/2022 10,500,000 2,315,652 8,184,348 Station State Transit and Intercity Rail Program, expires TIRCP Cycle 1 (2015) TIER 4 Locomotive replacement and expansion 41,181,000 33,762,800 7,418,200 8/1/2021 State Transit and Intercity Rail Program, expires TIRCP Cycle 3 (2018) SCORE ALLOC # 1 SCORE Preliminary Design 6,500,000 4,513,192 1,986,808 8/1/2021 State Transit and Intercity Rail Program, expires TIRCP Cycle 3 (2018) SCORE ALLOC #2 SCORE Design and Construction 68,185,000 5,475,651 62,709,349 8/1/2021 State Transit and Intercity Rail Program, expires TIRCP Cycle 3 (2018) SCORE ALLOC #3 SCORE Design and Construction 500,000 - 500,000 8/1/2021 State Transit and Intercity Rail Program, expires SCORE Construction of Rail Yard Rehabilitation TIRCP Cycle 3 (2018) SCORE ALLOC #3 19,766,000 - 19,766,000 8/1/2021 and Modernization at LAUS TBD Affordable Housing & Sustainable Communities Signal Respacing in Orange County 8,000,000 - 8,000,000 TOTAL 386,339,551 203,621,500 182,930,697 TIRCP Cycle 3 (2018) award is for $875.7 million, allocations against the award started in August 2018. Allocations for Metro to implement LINK US totalling $95.1 million and OCTA for $4.8 million to implement Orange County Maintenance Facility are not shown here.

204 APPENDIX C REGIONAL GRANTS - Carl Moyer and AB 936 Funds for Tier 4 Locomotives AMOUNT REMAINING BALANCE GRANT PROGRAM TOTAL GRANT AMOUNT REIMBURSED June 30, 2020 AQMD MOYER FY11-12 34,660,000 34,660,000 - AQMD MOYER FY11-12 17,340,000 17,340,000 - AQMD MOYER FY14-15 22,850,000 22,850,000 AQMD MOYER FY14-15 9,000,000 - 9,000,000 AQMD MOYER FY14-15 9,000,000 - 9,000,000 AQMD MOYER FY14-15 9,000,000 - 9,000,000 TOTAL 101,850,000 52,000,000 49,850,000

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