Services and Obligatory Participation of Mitigated Business Establishments Located in the Identified Geographic Areas

DATE: JANUARY 24, 2018

TO: ATN BOARD OF DIRECTORS

FROM: DIANA KOTLER, EXECUTIVE DIRECTOR

RE: AGENDA ITEM 12

RECOMMENDATION: Authorize ATN Executive Director to submit to the City of Anaheim ATN non-exclusive franchise update for a 12-month administrative extension

DISCUSSION: The Anaheim Transportation Network (ATN) provides Anaheim Resort Transportation (ART) services under the authority of two guiding documents:

1. Pertinent Specific Plans Provide regulatory oversight for transportation services and obligatory participation of mitigated business establishments located in the identified geographic areas

2. Non-exclusive Franchise Agreement Provides self-imposed operating and administrative standards for operation of transportation services by ATN and other entities

The ATN received its non-exclusive franchise from the City of Anaheim in 2004 per Section 1400 of the Charter of the City of Anaheim. The Charter establishes procedures for the award of franchises by the City and states that any person, firm or corporation furnishing the City of Anaheim or it inhabitants with transportation services may be required, by ordinance, to have a franchise. The Charter further states that the City Council is empowered to grant such franchises and to establish additional procedures, terms and conditions, as appropriate.

On April 27, 2004, the Anaheim City Council adopted Section 1.02.010 of the Anaheim Municipal Code requiring any person, firm or corporation furnishing the City or its inhabitants with transportation services to have a valid and existing franchise. In addition, on April 27, 2004, the City Council adopted Ordinance No. 5911 granting a non-exclusive franchise to the Anaheim Transportation Network to provide public transportation service within The Anaheim Resort® and other areas within the City of Anaheim.

On May 5, 2011, the ATN submitted an application to amend the franchise for the provision of public transportation services within the City of Anaheim and other designated areas within the City of Anaheim. Anaheim City Council adopted Ordinance No. 6219 to extend ATN’s non-exclusive franchise for seven (7) years through May 5, 2018, as well as allowing for a 12-month administrative extension by the City Manager, if the terms and condition of the franchise agreement remain unchanged and if ATN meets or exceeds the terms and conditions identified by the franchise.

Agenda Item 12 ATN Franchise Renewal Application Page 2 of 2 ______

Staff recommends submission of a 12-month administrative extension to the City of Anaheim through May 5, 2019. Meanwhile, ATN staff will continue to work with its Executive Committee and consultants to develop an application for renewal of the franchise agreement with the City of Anaheim that would take into consideration the impacts of new developments in The Anaheim Resort, Platinum Triangle and CtrCity, incorporate technological developments, changes in vehicular and clean fuel technologies to further:

1. Maintaining cohesive resort standard of transportation services to help to protect investments made by the City of Anaheim and business community;

2. Mitigate traffic and air quality impacts to enhance environmental benefits for the citizens of Anaheim and surrounding communities; and

3. Ensure that all transportation providers possess a valid franchise for transportation services based on the Anaheim City Charter.

The enclosed administrative renewal requests that the City of Anaheim approve a 12-month Administrative Extension of the ATN Franchise Agreement. This extension, as allowed under the terms of the current agreement, will extent the franchise agreement through May 5, 2019. Administrative Extension of the ATN Franchise Agreement consists of two (2) documents:

1. 12-Month Administrative Extension

a. Table 1 – ART Performance Indicators b. Table 2 – ART Fleet c. Table 3 – Background/Accomplishments

2. Franchise Service Standards Table

With the submittal of the ATN Administrative Extension, ATN is not requesting any changes in the franchise service standards, which were approved by the City of Anaheim in 2004 and 2011. ATN will continue provision of ART service with full commitment to meeting, and exceeding, these standards through the one-year administrative extension period, while preparing for the full franchise renewal in early 2019.

Enclosures:

ATN Franchise Administration Extension

January 29, 2018

Linda Johnson Principle Transportation Planner City of Anaheim 200 S. Anaheim Blvd. Anaheim, CA 92805

RE: ANAHEIM TRANSPORTATION NETWORK FRANCHISE AGREEMENT 12-MONTH ADMINISTRATIVE EXTENSION

Dear Ms. Johnson:

The Anaheim Transportation Network (ATN) requests that the City of Anaheim approve a 12-month Administrative Extension of the ATN Franchise Agreement. This extension, allowed under the terms of the current agreement, will extend the franchise agreement through April 27, 2019.

Enclosed for your review and consideration are two documents:

1. The Anaheim Transportation Network (ATN) Franchise Agreement – 12-Month Administrative Extension, which includes the following updated tables and attachments: a. Table 1 – ART Performance Indicators b. Table 2 – ART Fleet c. Table 3 – Background/Accomplishments d. Attachments A-F 2. Franchise Service Standards Table.

Since the last Franchise Update was provided to the City of Anaheim in 2014, ATN has seen tremendous growth in ridership and demand for service. With the opening of ARTIC and the continued growth in the Platinum Triangle and The Anaheim Resort, ATN has worked diligently to provide state-of-the-art, convenient, environmentally friendly, and streamlined transit services to more than 9.25 million riders per year. Some of the highlights of ATN’s efforts over the last four years include:

1. Adding two additional routes and increasing ridership from 9.1 to 9.25 million per year; 2. Launching a mobile ticketing app; 3. Engaging in capacity building planning; 4. Purchasing and deploying four all-electric buses (the future of ATN’s fleet); 5. Beginning service to CtrCity Anaheim; 6. Developing a Public Private Partnership (P3) to develop a Mobility as a Service app; and 7. Installing fleet upgrades to prepare for the launch of real-time passenger information system.

The ATN Franchise Service Standards parameters were approved by the City of Anaheim in August 2011. ATN will continue provision of ART service with full commitment to meeting, and exceeding, these standards through the one-year administrative extension period while we prepare for the full franchise renewal in 2019.

Should you have any questions and need further clarifications, please contact me at 714-563-5287 or via e-mail at [email protected]. Thank you.

Sincerely,

Diana Kotler Executive Director

Enclosures

Anaheim Transportation Network FRANCHISE AGREEMENT – 12-MONTH ADMINISTRATIVE EXTENSION April 27, 2018 – April 27, 2019

FRANCHISEE: Anaheim Transportation Network 2626 East Katella Avenue Anaheim, CA 92806 Attn. Diana Kotler (714) 563-5287 E-Mail: [email protected]

CORPORATE STATUS:

The Anaheim Transportation Network (ATN) is a California Non-profit 501(c)4 Corporation, formed on September 28, 1995.

FINANCIAL STABILITY

The ATN is providing audited Fiscal Year (FY) 2016/17 financial statements as Attachment A. In addition, TABLE 1 – ANAHEIM RESORT TRANSIT PERFORMANCE INDICATORS is provided below. The ATN does not currently have any pending litigations, fines or enforcement proceedings by other cities, public or private entities nor is the ATN involved in any bankruptcy filings.

I. Background

This report provides a synopsis of the ATN actions since the City Council approved the Updated Franchise Service Standards in August 2011.

The Anaheim Transportation Network (ATN) was incorporated as a non-profit California 501(c)4 Corporation in September of 1995, with the City of Anaheim being one of the 12 founding members. The ATN, a transportation management association, was created specifically to facilitate transportation in Anaheim with a distinct focus on the creation of a clean fuel shuttle system to serve transportation needs of The Anaheim Resort. Additionally, the ATN was established in support of the Anaheim Resort Specific Plan to mitigate traffic congestion and air quality impacts (mitigation measures 3.3-4, 3.3-8, and 3.4-1).

Presently, the ATN is governed by a 13-member Board of Directors representing a wide range of Anaheim business interests. Current ATN Board of Directors roster is provided as Attachment B.

Since submission of the franchise renewal application, the ATN has been successful in its ability to obtain grant funding and deliver implementation of the grant-funded projects. The entire ATN fleet operates using alternative fuels. Since the last franchise update, seven (7) new buses were added to fleet to improve and enhance ART service for the traveling public, including four (4) all-electric buses. The current the ART fleet consists of eighty (80) buses as depicted in TABLE 2 – ART FLEET.

The highlights of ATN’s accomplishments, from the first Franchise Agreement Update in 2011 through this Calendar Year 2017 are summarized in TABLE 3 - BACKGROUND AND ACCOMPLISHMENTS.

TABLE 1 -- ANAHEIM RESORT TRANSPORTATION PERFORMANCE INDICATORS

Category/Fiscal Year FY 2009/10 FY 2010/11 FY 2011/12 FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 Actual Actual Actual Actual Actual Actual Actual Actual

21 22 22 23 Number of Routes 16 16 18 19

Fleet Composition E-Bus – Electric 10 10 10 0 0 0 0 4 El Dorado – Propane 8 8 17 17 17 17 17 9 NABI – Liquefied Natural Gas 0 35 35 35 35 35 40 45

Glaval Entourage – Compressed 0 9 0 17 18 18 18 19 Natural Gas El Dorado Low-Floor Passport – 0 1 0 3 3 3 3 3 Compressed Natural Gas 73 73 78 901 Total Current Fleet 62 72

Annual Ridership 4.13 million 7.65 million 7.63 million 7.8 million 9.1 Million 9.1 Million 9.2 Million 9.25 Million

Annual Budget Total Revenue $8,618,566 $10,567,120 $11,635,268 $12,289,813 $14,111,061 $15,022,946 $15,786,000 $15,068,161 Total Expenditures $8,158,519 $9,967,186 $10,971,221 $11,745,943 $13,531,583 $13,920,407 $14,955,521 $14,670,710 Excess Revenue (Deficit) $ 460,047 $ 599,934 $ 663,017 $ 575,893 $ 579,478 $1,102,539 $830,479 $397,451 Accumulated Reserves $ 460,047 $1,059,981 $1,722,998 $1,948,851 $1,993,329 $2,197,046 $2,437,046 $1,887,046 Use of Accumulated Reserves $ 0.00 $ 0.00 $ 350,000 $ 545,000 $1,313,329 $1,317,046 $2,252,020 $1,854,569 Remaining Reserves $ 460,047 $1,059,981 $1,372,998 $1,413,851 $ 680,000 $ 880,000 $1,102,910 $825,962

1 Total fleet includes necessary vehicles to provide CtrCity MicroTransit service. MicroTransit fleet of 10 electric zero emission small capacity vehicles maybe acquired by late-Spring 2018

TABLE 2 – ART FLEET Model Year/ Seating/ FTA Required Number of Year Manufacturer Fuel Type Size Standing Vehicle Life Buses in Deployed in Capacity (in years) Fleet Service

E-Bus Electric 2016 40-ft 39/18 12 4 El Dorado Liquefied National – 2011 32-ft 28/14 7 9 Propane Gas StarCraft Liquefied NABI 2002 40-ft 39/18 12 45 Natural Gas Glaval Compressed 2012 33-ft 30/15 7 19 Entourage Natural Gas El Dorado Compressed National – 2013 35-ft 32/16 12 3 Natural Gas Passport

Polaris GEM2 Electric 2018 13-ft 6 5 10

2 Vehicles will be acquired during the term of the Franchise Extension

TABLE 3 –BACKGROUND/ACCOMPLISHMENTS YEAR ACCOMPLISHMENT DESCRIPTION

April 2011 Acquired nine (9) new buses Nine (9) new LPG buses delivered to enhance ART fleet Awarded State of Good Repair and October 2011 ATN receives funding to procure 20 new buses for ART fleet Clean Fuels Grant ATN begins service to other Orange County destinations to Expanded service to Buena Park April 2012 enhance guest experience and reduce traffic congestion in and Santa Ana The Anaheim Resort Service frequency improved to 20-minute headways to Improved service frequency to the further encourage use of multi-modal services and June 2012 Anaheim Stadium Train Station connectivity between The Anaheim Resort and the Platinum Triangle ATN celebrate its 10th anniversary and service provision to November 2012 ART’s 10th Anniversary over 35 million passengers January 2013 Deployed informational bus arrival ATN begins deployment of informational bus arrival signs in system The Anaheim Resort and in other parts of Anaheim Acquired new property at 1354 ATN begins architectural design for the permanent April 2013 South Anaheim Blvd., Anaheim administrative and operational facilities Completed construction of new May 2014 ATN relocated its administrative and operational facilities facilities First installations of ICG electronic “ribbon” style Installed electronic advertisement June 2014 advertising panels inside buses in addition to interior on buses printed advertising Fleet of 35 LNG buses assumed from OCTA and all Assumed all fleet maintenance maintenance functions transitioned to ATN; Fleet July 2014 functions from OCTA maintenance responsibilities for this fleet of buses awarded

to Penske; Fueling infrastructure installed by Clean Energy Awarded new contract for ART services contract awarded to First Transit; ART services July 2014 operational services transitioned without interruption. Design of the mobile application started for mobile Initiated design of Mobile Ticketing September 2014 ticketing and real-time bus arrival information; Text2Go and Smart Phone Applications system deployed ART service begins at ARTIC; ATN offices at ARTIC fully December 2014 Negotiated lease at ARTIC functional System realignment to include new and upcoming lodging December 2014 Realigned ART System establishments and ARTIC along a “line” system Launch of Create a Ticketing APP with GFI GenFare and April 2015 Launched Mobile Ticketing CooCoo ATN enters a Purchase Consortium with Long Beach Transit Entered ZEB Purchase Consortium March 2015 for the purchase of Zero Emission Buses; Agreement with Long Beach Transit awarded to BYD, providing ATN with 10 options Assumed all Maintenance Services All fleet maintenance services assumed in-house by ATN August 2015 In-House staff, with all fleet maintenance directly provided by ATN ART begins bi-directional new service at South Coast Metro July 2015 Began service to Costa Mesa area in the City of Costa Mesa Began 2035 Capacity Building ATN board begins a visioning effort into the future outlook January 2016 Planning of capital and service needs of the ATN

TABLE 3 (cont.) YEAR ACCOMPLISHMENT DESCRIPTION

Received first four zero-emission, all-electric BYD buses March 2016 Received 4 ZEB BYD buses (through purchase consortium with Long Beach Transit) to start shift to all-electric fleet Expand availability of mobile ticketing options and October 2016 Expanded Mobile Ticketing denominations Began Real Time Passenger Signage Install new CAD/AVL system on board ART fleet to facilitate December 2016 efforts – fleet upgrade upcoming real-time passenger information system Awarded ART Operation Contract Seamlessly transitioned ART services from First Transit to December 2016 to TransDev TransDev Issued RFP for Mobility on Demand Began procurement and planning options for the suite of January 2017 Services Mobility as a Service products Expand service in Costa Mesa along Bristol Avenue to July 2017 Expanded service in Costa Mesa connect hospitality and residential neighborhoods with the attractions in the City of Costa Mesa Began realigning of ART location & Began look at relocation options for ART operating facility. July 2017 consideration of future location ART executive and finance moved to ARTIC. ART sales & options marketing moved in with Visit Anaheim 50% of the InfoTainment system installed on ART fleet; Began Installation of InfoTainment October 2017 Advertising program expanding to increase advertising System revenue for ART services October 2017 Began service in CtrCity CtrCity/Platinum Triangle service began Mobility as a Service Private Public Partnership (P3) Awarded contract for Mobility as a November 2017 awarded to RouteMatch with initial Mobile App Service Mobility APP deployment slated for Spring 2018 Mobility on Demand service model with a fleet of Began preparations for provision of November 2017 MicroTransit vehicles using deviated fixed route and e- MicroTransit services at CtrCity hailing technology

II. Service Territory

2018 Franchise Update:

Since its inception in 2004, the service territory for ART has increased from 8 routes to 21 routes serving over 9.5 million passengers per year. Most recent additions include: 1) service for the South Coast Plaza area in Costa Mesa, which began in July 2105; 2) expanded service in Costa Mesa along Bristol Avenue in July 2017; and 3) new service to CtrCity/Platinum Triangle in October 2017.

Original Franchise Requirements

While maintaining the required minimum of 98% of the annual vehicle service miles to be provided within the City of Anaheim, the ATN service territory increased to provide transportation services to Costa Mesa destinations including South Coast Plaza and residences and businesses along Bristol Avenue. Through careful route planning, the ATN is committed to meeting and maintaining the required annual vehicle service mile constraints within the City of Anaheim. In October, ATN added new, direct and free service to CtrCity from ARTIC.

III. Franchise Service Standards

2018 Franchise Update: Concentration of work efforts focused on the opening of ARTIC, service expansion to Costa Mesa and CtrCity Anaheim and planning for future growth, development, and relocation of the maintenance and operations facilities. ATN service parameters remained constant in an effort to ensure consistent service delivery.

For the Customer Service performance metrics for FY 2016/17, ATN received only 3.36 complaints per 100,000 passengers, down from the already low 4.15 complaints per 100,000 in 2013/14.

The standards for transportation service excellence are the backbone of our service provision policy. Through sixteen (16) years of transportation service provision, the ATN successfully raised the bar for transportation services and will continue to operate based on the standards incorporated into franchise requirements.

Original Franchise Requirements

A. Initial and Updated Operational Standards

1. Service Area – Franchisee shall provide service to all Event Centers

ART service is provided for the following event centers:

▪ Anaheim Convention Center ▪ Disneyland Resort/California Adventure/Downtown Disney ▪ Anaheim Stadium/ARTIC ▪ Honda Center ▪ The Outlets at Orange ▪ Christ Cathedral ▪ Anaheim GardenWalk

▪ CtrCity – Downtown Anaheim ▪ Anaheim Canyon Metrolink Station ▪ Buena Park destinations – Knott’s Berry Farm, Medieval Times Dinner Theater and Pirates Dinner Adventure ▪ Santa Ana destinations – MainPlace and Discovery Science Center ▪ Costa Mesa destinations – South Coast Plaza, Bristol Street

The latest edition of the ART system map is provided as Attachment C.

2. Hours and Frequency of Service – Franchisee shall provide service to Event Centers in The Anaheim Resort beginning one hour before Event Centers open and end the service no earlier than 30 minutes after Event Centers close.

Service frequency on core ART routes (Routes 1 - 12) has been maintained at 20-minute headways throughout the day regardless of seasonality or time of day.

Services on ART Routes 15 – 23 operate on a printed schedule (with exception of Route 20), a revision made to address confusion by patrons and customer service personnel. Frequency of services was designed to meet specific demand needs on each route.

Route 20 – the downtown circulator (Toy Story) route – is operated as a continuous loop with maintained service frequencies of 5 minutes.

On demand, Mobility as a Service operating model will be demonstrated, in a limited geographic area, in 2018.

3. On-Time Performance – Franchisee shall maintain at least 95% on-time performance. Missed trips will be defined as documented wait times exceeding the posted frequency with the exception of unavoidable unusual traffic delays or other unforeseen operational challenges.

The ATN tracks Customer Service Performance metrics based on the following 14 categories:

1. On-line Survey – Moderately Satisfied 2. On-line Survey – Moderately Dissatisfied 3. On-line Survey – Extremely Dissatisfied 4. ADA/Wheel Chair Issues 5. Bus Stop Issues 6. Commendation 7. Late Trip/Schedule Issues 8. Mystery Shopper Report 9. Overcrowding 10. Rude/Discourteous Driver 11. Service Suggestion 12. Unsafe Driving 13. Vehicle Cleanliness 14. Other

Annual summary of the Customer Service Performance metrics are provided as Attachment D.

In FY 2012, the ATN received a total of 1,131 complaints, with 376 complaints specific to on-time performance issues. The ATN’s performance improved through the reduction of over 177 total complaints (15.6% reduction in total complaints) with only 192 complaints resulting from on-time performance. A total of 954 complaints were received FY 2013. In consideration of the total ridership of 7.6 million and 7.8 million for the respective reporting years, ATN more than exceeds the self-established 95% on-time performance standard.

4. Capacity Management – Franchisee shall demonstrate the ability to handle peak demand periods up to 20% over typical monthly ridership statistics

ATN continues to utilize “floater” bus fleet to manage peak demand management, scheduling at minimum two and as many as eight floater buses to accommodate daily peak operating times. Typically, these periods are the first three to four hours from the destinations’ opening times and the last three to four hours prior to closing. Assigned floater buses are designed to “float” and assist with excess passenger demands. In addition, stand-by and extra-board drivers are used to ensure personnel availability for peak demand times.

5. Complaint Resolution – Franchisee must have in place a complaint procedure that includes a log of all complaints received, date and time of complaint, response, date and time of response, results of investigation, action taken, and any written communications.

All complaints received in writing must be responded to in writing within five (5) business days with at minimum an acknowledgement of complaint, complaint status, and expected time to resolve. All complaints received by telephone must be logged.

Complaints are received through the following channels:

▪ On-line surveys ▪ Telephone communications ▪ US Mail ▪ Mystery Shoppers ▪ On-Board surveys

All received comments (complaints and commendations) are tracked in the ATN’s TransTrack database. All complaints are answered by direct mail and/or e-mail correspondence within 10 days of receipt. In addition, all complaints are addressed with the contractor for corrective action.

B. Environmental Standards

2018 Franchise Update:

Anaheim Resort Transit fleet is comprised of 100% alternative fuel buses. To continue with the commitment to provide environmentally sustainable transportation options, four zero-emission, electric buses were added to the ART fleet in 2016, and two additional zero-emission, electric buses are on order for delivery in 2018.

Original Franchise Requirements

1. Clean fuel vehicles – Franchisee must meet the intent of the mitigation measures in The Anaheim Resort Specific Plan and operate clean fuel vehicles. Clean fuel is defined as electric, propane (LPG), liquefied natural gas (LNG), compressed natural gas (CNG), or fuel cell vehicles.

ATN’s entire fleet is operated through the use of alternative fuels such as liquefied natural gas (LNG), compressed natural gas (CNG), and electric-powered battery. ATN does not have in its fleet any diesel or gasoline vehicles, and it has phased out the use of propane propulsion.

2. Fueling – Franchisee must demonstrate ability to obtain clean fuel resources

ART fueling facilities are available at the following locations: 1. ATN – liquefied natural gas (LNG), 480V/3 Phase/100 AMP power interface and supplemental EV charging solutions. 2. Clean Energy public access station – compressed natural gas (CNG)

3. Traffic Mitigation – Franchisee shall use a fare structure that encourages use of the transit system.

A minor adjustment to ART’s fare structure was approved by the ATN Board of Directors and became effective on March 1, 2017. The new ART fare structure is provided in TABLE 4 – ART FARE STRUCTURE. The primary reason for the fare adjustment was to ensure that the ATN continues to operate in a sustainable manner without cost increased to the local community.

TABLE 4 – ART FARE STRUCTURE TIME FRAME Passengers Hospitality Community May 2008 – September 30, $4.00 all day unlimited use day adult pass 2012 $1.00 all day unlimited use day child pass ages 3 $.48/room/day to 9 October 1, 2012 – February $5.00 all day unlimited use day adult pass 2017 $2.00 all day unlimited use day child pass ages 3 $.48/room/day to 9 March 2017 – present $5.50 all day unlimited use day adult pass $.55/room/day

$2.00 all day unlimited use day child pass ages 3 to 9

4. Communications - The Franchisee shall provide and install a radio communications system that will allow for timely and efficient dispatching, coordinating, and responding to necessary service calls. Each bus, as well as each administrative vehicle, shall have a receiver/transmitter installed and operational. In addition, hand-held mobile units shall be provided for all supervisors and other personnel, as needed.

The ATN continues to operate a two-way communication system. All buses are equipped with two-way, three-channel radios to maintain continuous communications with the dispatch office. In addition, all supervisors are assigned Nextel cell phones and lap top computers, with Wi-Fi capabilities, to track ART performance, report problems and provide dispatch notes for continuous operations.

In addition to the radio system, ATN installed on the entire ART fleet an automated vehicle location (AVL) system to accomplish several goals:

1. Maintain visual surveillance of the buses to ensure adequate driver performance; 2. Enhance Text & Go functionality for guest experience; and 3. Deploy electronic information signage – “Next Bus Arriving At” at several high ridership locations

In December 2016, ATN began installing new CAD/AVL system on board the ART fleet to facilitate upcoming real-time passenger information system.

C. Vehicle Standards

1. Vehicle appearance – Franchisee shall ensure that all vehicles will be decorated with a common theme that matches aesthetic design schemes of The Anaheim Resort. All painted surfaces shall be in good condition. Normal wear and tear to the finish is to be expected, but paint is to be maintained at a high level of finish throughout the franchise period in order to present the best possible image to the public. All painted surfaces shall be free from graffiti and scratches, and there shall be no perceivable difference in gloss or shades of individual colors. It shall be the responsibility of the Franchisee to assume all costs associated with painting the vehicles to these standards in regard to fading or discoloration from wear and tear.

In 2016-17, ATN developed new brand standards for all ART-branded buses and buses available for advertising contracts. This brand standard, provided in Attachment E, allows a consistent look for the entire ART fleet of vehicles across most ART operation Lines. The vehicle appearance standards and the associated vehicle wrap program fall into two distinct categories:

A. Generic Wrap Program (Generic Route Service) – Samples of the generic ART bus wrap program are provided in Attachment E. Buses dedicated to the Generic Route Service shall have a unified look to ease service recognition for the passengers.

Currently fifteen (15) buses are operating with the generic ART bus wrap. To assist passengers with the way finding functionality, LED bus signs are available on the entire ART fleet of buses to indicate specific ART route(s), destination(s) and service name(s). In addition, in October 2017, ATN began installation of the InfoTainment system on its ART fleet. This advertising and information program is installed on 50% of the ART fleet and is designed to increase advertising revenue for ART services.

B. Destination Wrap Program (Specialized Route Service) – This program promotes specific routes within the Anaheim Resort District, i.e. Route 20 (Toy Story Service to the theme parks) and point-to-point routes serving specific destinations such as the Disneyland Resort. In addition, to assist passengers with the way finding functionality, LED bus signs are available on the entire ART fleet of buses to indicate specific ART route(s), destination(s) and service name(s).

2. Maintenance – Through a Preventive Maintenance program, the Franchisee shall cause all components of each vehicle including its body, frame, furnishings, mechanical, electric, and hydraulic or other operating systems to be maintained in proper working condition free from damage and malfunction. The Franchisee shall be responsible for keeping a vehicle file by vehicle number, documenting all vehicle maintenance to include Preventive Maintenance, scheduled maintenance and inspections, parts usage, unscheduled maintenance, energy usage, and labor expended on each vehicle. The Franchisee is responsible for keeping the vehicle file current. The Franchisee shall be responsible to ensure that a vehicle defect report is completed daily by the driver on each vehicle prior to daily service. Any significant vehicle damage caused in any accident or otherwise shall require the Franchisee to immediately repair such damage, which is determined to impair safe mechanical operation of the vehicle.

ATN is continuing to operate under the maintenance standards as presented in the original franchise renewal application. However, to contain maintenance costs, ATN assumed all bus maintenance responsibilities as of September 17, 2012. In May 2014, ATN purchased and relocated into its own facility, enabling ATN to provide direct maintenance services for its entire fleet. In August 2015, ATN assumed 100% of fleet maintenance service in-house, with all maintenance provided directly by ATN staff.

ATN strongly believes that through the internal maintenance program, the ATN will be able to not only maintain, but improve its maintenance services, as well as continue to contain costs in order to provide cost-effective transportation services to the traveling public.

D. Personnel Standards

1. Qualifications – All drivers will maintain a current California Class A or Class B commercial driver’s license with both air brake and passenger endorsements, and maintain a current Medical Examiner’s Certificate (DL 51); will conduct daily pre-trip and post trip vehicle safety inspections; and will complete annual refresher training on safety procedures and ADA procedures.

E. Operational Standards

1. Dispatch – Franchisee shall ensure that dispatch is available during all hours of operation, to ensure safe and efficient service.

2. Communications - The Franchisee shall provide and install a radio communications system that will allow for timely and efficient dispatching, coordinating, and responding to necessary service calls. The system may be of the Franchisee’s choice, but must include the necessary performance elements of the system. Each bus, as well as each administrative vehicle, shall have a receiver/transmitter installed and operational. In addition, hand-held mobile units shall be provided for all street supervisors, vehicles with temporarily inoperative radios, Parking Operations Office at the Anaheim Convention Center, and other personnel, as needed. The radio system is to be used for operational purposes only. No advertising shall be permitted on the radio system. Vehicles will not be operated in resort service without a functioning radio in the vehicle. Franchisee shall at all times have operating hand-held radios or other communication devices available for distribution to drivers whose vehicle communication systems are inoperative. If a radio fails while in service, the driver shall notify the dispatcher by landline or through another driver, and a hand-held radio shall be dispatched to the driver without delay.

In December 2016, ATN installed new real-time GPS and CAD/AVL systems on the ART fleet, updating systems installed in 2014, allowing dispatch to monitor ART operations, on-time performance and schedule adherence. This CAD AVL system supplements regular two-way radio communications. The data from this system also allow the continued operation of the real-time Text2Go service (initially deployed in September 2014) and use of the real-time trip planning functions on ART’s website www.rideart.org.

3. Shared Use of Bus Pull-Out Locations - The Franchisee shall demonstrate understanding of the operational sensitivities of shared use bus pull-out locations and a plan to accommodate the multiple demands on these locations.

In December 2014, ATN added shared bus pull-out location for its operations at Anaheim Regional Intermodal Transportation Center (ARTIC)

4. Record keeping – Franchisee shall maintain records, in their original form, in accordance with the franchise requirements and in support of service provision, customer service, safety record, training, staffing, maintenance, and quarterly, monthly, and daily ridership statistical reports. Ridership reports shall include boarding and alighting at each stop. Such records shall be retained for a period of five (5) years after termination of the requested franchise if all other pending matters are closed. “Pending matters” include, but are not limited to, an audit, litigation, or other action involving the records.

5. Reporting – The Franchisee shall submit quarterly reports to the City of Anaheim with all required operating data and system documentation.

A copy of the Fiscal Year 2016/17 National Transit Database (NTD) report is provided as Attachment F.

6. Financial - The Franchisee shall maintain a system of internal fiscal control in accordance with generally accepted accounting practices. Internal fiscal control comprises the plan of organization and all the coordinated methods and measures adopted within an

organization to safeguard its assets, check the adequacy and the reliability of its accounting data, promote operating efficiency, assure adherence to prescribed management policies, and properly account for project income and expenses.

ATN’s auditor, Farber Hass Hurley, completed their Fiscal year 2016/17 audit in October 2017. The audit report and a copy of the audited financial statements are included in Attachment A. In addition, ATN has developed a recommended approach for determining a pro-rata share financial contribution (Cost Allocation Model) applicable initially to those entities required to participate as a mitigation measure and complementary Will Serve Request Process to provide information on transportation services for proposed development projects within the City of Anaheim Special Plan areas and within ATN service area.

F. Monitoring Standards

1. Evaluation – Franchisee shall conduct an ongoing, thorough program of passenger satisfaction evaluation. The results of this evaluation shall be included in all required franchise reporting.

2. Audits - At any time during normal business hours and as often as the City may deem necessary and after reasonable notice, the Franchisee shall make available to the City for examination, all necessary records with regard to the service provision. The City shall have the authority to audit, examine, and make excerpts or transcripts from records, including all invoices, materials, payrolls, records of personnel, and other statistical data relating to all matters covered by the requested franchise.

ATN’s auditor, Farber Hass Hurley, completed their Fiscal year 2016/17 audit in October 2017. The audit report and a copy of the audited financial statements are included in Attachment A.

G. Safety Standards

1. Farebox Operations – Franchisee shall establish fare control access control system for all services conducted under the terms of the requested franchise, for the safety of all passengers and vehicle operators.

ATN awarded a contract to GFI and CooCoo to implement an electronic ticketing platform. The platform, Token Transit Mobile Application (APP), that was implemented in 2015 and expanded in October 2016. ATN is developing its own Mobile App for trip planning and mobile ticketing, which will be available by mid-2019.

2. Insurance - Franchisee must maintain auto insurance coverage levels of at least $25 Million per occurrence for all Resort Passenger Shuttling vehicles, and general liability insurance of at least $10 Million.

3. Operational Safety - The Franchisee shall have in place and at all times abide by a written Safety Program. The Franchisee’s Safety Program shall at a minimum comply with applicable Federal regulations of the Occupational Health and Safety Administration, and any amendments thereto, as well as any other pertinent Federal, state, and/or local safety

or environmental laws, codes, rules or regulations. The Franchisee shall ensure that regular and continuous formal safety instruction for all personnel assigned to perform any activities under the terms of the requested contract is provided and shall require them to attend regularly scheduled safety meetings at least four times per year or more frequently as required above.

The ATN’s through its contractor, TransDev, provides a comprehensive driver safety training program. Required classroom style classes are conducted every other month for all ART drivers. Classes dealing with sexual harassment and drug and alcohol testing (reasonable suspicion) are conducted annually. In addition, driver “rodeo” safety training contests are conducted approximately every six months.

Franchise Service Standards - 2017

Franchise Service Standards

2017 Franchise ATN Comments Franchise 2004 Franchise 2011 Franchise Brief Description Updated Service Requested Changes Requirement Original Application Approved Service Standards Standards and/or Amendments

Operational Standards

Service Area Franchisee shall provide Disneyland® Resort Disneyland® Resort Disneyland® Resort The Anaheim Resort service to all Event Centers Disney® California Disney® California Adventure Disney® California Adventure Transportation (ART) service Adventure Downtown Disney Downtown Disney ridership increased three-fold Downtown Disney Anaheim Convention Center Anaheim Convention Center since 2004. The service Anaheim Convention Anaheim Stadium/Anaheim Train Anaheim Garden Walk increased from eight routes Center Station Anaheim Stadium/ARTIC to 21 routes serving over 9.5 Honda Center Honda Center million passengers per year. The Block at Orange Outlets at Orange Service expanded at the Crystal Cathedral Christ Cathedral request of the previous City Anaheim Garden Walk Buena Park Destinations: Council, Visit Anaheim Battle of the Dance Knott’s Berry Farm (previously Anaheim/Orange Medieval Times Dinner & County Visitors and Theater Convention Bureau), and local Pirates Dinner Adventure community. Anaheim Canyon Metrolink Station City of Costa Mesa/South Coast Plaza Downtown Santa Ana CtrCty – Downtown Anaheim

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Franchise Service Standards - 2017

Franchise Brief Description 2004 Franchise 2011 Franchise 2017 Franchise ATN Comments Requirement Original Application Approved Service Standards Updated Service Requested Changes Standards and/or Amendments

Hours and Franchisee shall provide Service began one hour Service begins one hour prior to the NO CHANGE With the need of ART service Frequency of service to Event Centers in prior to the event event centers’ opening on non-early to adjust to the demands and Service The Anaheim Resort centers’ opening. entry days. Service begins one hour needs of the local beginning one hour before Service ended 30 twenty minutes prior to the event destinations/event centers, Event Centers open end the minutes after event centers’ opening on early entry days. start of service window had service no earlier than 30 centers’ close. to be expanded to minutes after Event Centers Service ends 30 minutes after event accommodate the needs of close centers close. the traveling public.

Service Frequency Service shall be provided no Peak times, from 8 am All day 20-minute headway. Core ART – Routes 1-12 Previous scheduling less frequently than 10 to 11 am and from 9 pm All day 20-minute headway configuration was confusing minutes during peak times till close every 10 operating frequency. to ART patrons and customer and 30 minutes during off- minutes. The rest of service personnel. peak times. the day every 30 ART Routes 15-23 Operate minutes. on a printed schedule (with To ease the use of the system exception of Route 20). and ability of customer Frequency varies and is service personnel to explain developed to meet specific the system, service operates demand needs on each continuously on a 20-minute route. headway schedule for Core ART routes and on a printed Route 20 – Circulator Service schedule for fixed routes. Operates in a continuous

loop with maximum wait On demand, Mobility as a time of 5 minutes. Service operating model will On–Demand Deviated Fixed be demonstrated, in a limited Route Service – CtrCity real- geographic area in 2018. time pick-up request/e- hailing service (Slated to begin in mid-2018).

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Franchise Service Standards - 2017

Capacity Franchisee shall The ART operator To take into consideration daily NO CHANGE Management demonstrate the ability to contract requires that fluctuations in the demand for handle peak demand supplemental back-up service, ATN schedules at minimum periods up to 20% over buses be available to two (2) and as much as eight (8) typical monthly ridership handle over-capacity floater buses to accommodate daily statistics events or days. peak operating times, which typically are the first three (3) to four (4) hours from the destinations’ opening times and the last three (3) to four (4) hours prior to closing. Assigned floater buses are designed to “float” and assist with excess passenger demands.

Complaint Franchisee must have in All complaints received The ATN receives passenger input NO CHANGE Resolution place a complaint in writing must be from a range of sources. Most procedure that includes a responded to in writing commonly used communications log of all complaints within five business methods are: received, date and time of days with at minimum complaint, response, date an acknowledgement of On-Board Comment Cards and time of response, complaint, complaint On-Line Hot Line results of investigation, status, and expected Passenger feedback with a booking action taken, and any time to resolve. agency, i.e. Walt Disney Travel, written communications. Expedia All complaints received in All complaints received Telephone calls from lodging writing must be responded by telephone must be establishments and/or passengers to in writing within ten (10) logged. All telephone business days complaints of a serious The ATN responds, in writing, to all nature must be comments, whether positive or responded to in writing negative within ten (10) days of the receipt of a complaint or commendation. All complaints are addressed with the contractor for corrective action.

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Franchise Service Standards - 2017

Franchise Brief Description 2004 Franchise 2011 Franchise 2017 Franchise ATN Comments Requirement Original Application Approved Service Standards Updated Service Standards Requested Changes and/or Amendments

Environmental Standards

Clean fuel vehicles Clean fuel vehicles – The ART fleet has Anaheim Resort Transit fleet is Anaheim Resort Transit fleet 100% alternative fuel buses. Franchisee must meet the already achieved this comprised of 100% alternative fuel is comprised of 100% intent of the mitigation standard of clean fuel buses. alternative fuel buses. Begin transition of zero measures in The Anaheim operations, using a emission fleet operations. Resort Specific Plan and fleet that was 85% To continue with the operate clean fuel vehicles. clean fuel upon commitment to provide Clean fuel is defined as inception (Out of 27 environmentally sustainable electric, propane (LPG), vehicles – 2 electric transportation options, four liquefied natural gas (LNG), trams, 10 electric (4) ZEB electric buses were compressed natural gas buses, and 11 propane added to the ART fleet with (CNG), or fuel cell vehicles trolleys were used). two (2) additional ZEB buses on order.

Fueling Franchisee must ART fueling is done ART fueling facilities are available at Phased out propane Begin transition of zero demonstrate ability to with on-site chargers the ATN and OCTA maintenance propulsion – transitioning to emission fleet operations obtain clean fuel resources and a propane fueling facilities. Electric charging facilities only CNG and electric station with 15 days for electric buses were moved from vehicles. storage capacity. A the previous to the new facility. A long-term contract for new propane public access fueling Provision of 480V/3 propane delivery is station, under a long-term contract Phase/100 AMP power maintained by the ART with Expo Propane, was installed at interface and supplemental Operator, with Mutual the ATN facility. OCTA contract EV charging solutions. Propane. provides full access to the LNG fueling station. The ATN also began a new grant request for funding and future construction of a new on-site CNG public access fueling station to accommodate 20 new CNG buses.

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Franchise Service Standards - 2017

Traffic Mitigation & Franchisee shall use a fare The ART system Begin transition of Zero Emission NO CHANGE Fare Structure structure that encourages utilizes an unlimited fleet operations use of the transit system use day pass fare structure which encourages multiple trips. This type of fare system helps to fulfill the traffic congestion mitigation requirements of the Anaheim Resort Specific Plan.

Radio The Franchisee shall provide A two-way A two-way communication system is Deployment of Automatic Communications and install a radio communication provided by the ATN. All buses are Vehicle Location (AVL). communications system system is provided by equipped with two-way three- Available real-time bus that will allow for timely Contractor. All buses channel radios to maintain arrival information. and efficient dispatching, are equipped with continuous communications with the coordinating, and two-way radios to dispatch office. In addition, all responding to necessary maintain continuous supervisors are assigned Nextel cell service calls. communications with phones and lap top computers, with the dispatch office. Wi-Fi capabilities, to track ART performance, report problems and provide dispatch notes for continuum of operation.

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Franchise Service Standards - 2017

Franchise Brief Description 2004 Franchise 2011 Franchise 2017 Franchise ATN Comments Requirement Original Application Approved Service Updated Service Requested Changes and/or Standards Standards Amendments

Vehicle Standards

Vehicle appearance Franchisee shall ensure that ART bus themes and NO CHANGE Developed new brand Consistent look for the entire all vehicles will be decorated appearance standards the standards for all ART- ART fleet of vehicles across with a common theme that ART Operator is branded buses and buses most ART operation Lines. matches aesthetic design contractually bound to available for advertising schemes of The Anaheim maintain contracts. Standards for Resort. All painted surfaces branded bus fleet provided shall be in good condition. as Attachment E.

Maintenance Through a Preventive ART Preventative Daily pre-trip and post-trip As a cost saving measure, ATN purchased and relocated Maintenance program, the Maintenance Program is inspections by ATN road ATN brought all maintenance into its own facility in May Franchisee shall cause all incorporated in the services supervisors monitor services in-house. 2014. This enabled ATN to components of each vehicle operating agreement and contractor’s adherence to the provide direct maintenance including its body, frame, provided by 3rd party maintenance protocol. Buses No other changes to the services for its entire fleet. furnishing, mechanical, vendor. deemed unsafe for operations maintenance standards electric, and hydraulic or are not allowed into service occurred. other operating systems to until such time as adequate be maintained in proper repairs were made. working condition free from damage and malfunction The ATN employs an on-call inspector to provide additional professional guidance and oversight of the contractor’s maintenance program

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Franchise Service Standards - 2017

Cleanliness The Franchisee shall cause, Vehicle cleanliness is First impressions make or NO CHANGE on a scheduled basis, each incorporated in the services break the overall perception vehicle to be maintained in a operating agreement and of service; therefore, fleet clean condition throughout, provided by 3rd party vendor. cleanliness is treated with the both interior and exterior. outmost importance. Specific penalties are outlined in the operating All buses in the ART fleet are agreement to ensure full cleaned internally on a daily compliance. basis. External bus wash and detailing is done weekly, or more frequently pending adverse weather conditions.

Graffiti The Franchisee shall remove Any vehicle with graffiti is NO CHANGE NO CHANGE all graffiti from the vehicle not allowed in service. as soon as it is found. No Should graffiti be discovered vehicle shall start revenue while in service, the bus will service with graffiti on any be immediately removed surface of the vehicle. If from service. Any and all graffiti is etched or appearance of graffiti is not scratched into glass or tolerated. insert, that glass or insert must be repaired or replaced before the vehicle is placed back into revenue service.

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Franchise Service Standards - 2017

Non-discrimination All vehicles in the public Each vehicle in the ART fleet Each vehicle in the ART fleet is NO CHANGE & ADA compliance transit fleet must be is wheelchair accessible. wheelchair accessible. Visual accessible to individuals Visual and audible stop and audible stop annunciation with disabilities meeting all annunciation equipment is equipment is provided on all applicable federal being selected and will be buses through integration of requirements issues by the installed prior to issuance of the GPS, voice annunciation US Department of the requested franchise. system and external and Transportation and US internal LED stop signage. Department of Justice The ATN is also fully compliant with Title VI of the Civil Rights Act of 1964 and corresponding Federal Transit Administration (FTA) Circular 4702.1A, which warrant that no person in the United States is subject to discrimination under any program or activity receiving federal financial assistance on the grounds of race, color or nation of origin.

Personnel Standards

Driver All drivers will maintain a The ART operating contract All contractor personnel must NO CHANGE Qualifications current California Class A or requires that these meet standards established by Class B commercial driver’s standards be met including the US Department of license with both air brake contractor maintain a Transportation and Federal and passenger summary personnel record Transit Administration. A endorsements, and of all current ART drivers comprehensive driver training maintain a current Medical and mechanics. program is established to Examiner’s Certificate (DL include classroom and behind 51) the wheel training programs.

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Franchise Service Standards - 2017

Appearance All drivers will be neatly ART operator appearance NO CHANGE NO CHANGE groomed and outfitted in an standards are consistent official uniform, including with the Disneyland® name tag. Resort’s appearance standards.

Dispatch and Drivers will be supervised. ATN assumed all supervisory NO CHANGE NO CHANGE Supervision Field Supervisors will be functions effective April physically present in The 2010. Fifteen (15) Anaheim Resort during supervisory positions are 100% of operating hours to employed by the ATN to monitor and ensure driver provide full coverage. quality and performance of smooth operation of all Supervisors and dispatchers Anaheim Resort Transit positions are staffed on a service routes 24-hour basis during peak times and on an 18-hour basis during non-peak. At minimum, three (3) supervisors are on duty at any given time. Two (2) supervisors are typically in the field observing ART operations and one (1) supervisor is in a dispatch office to provide radio coverage.

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Franchise Service Standards - 2017

Operational Standards

Dispatch Franchisee shall ensure that Dispatch and supervision ATN assumed operations of all NO CHANGE dispatch is available during are provided by the 3rd party dispatch and supervision all hours of operation, to vendor as part of the ART functions. Dispatchers report ensure safe and efficient services agreement. for duty one hour prior to the service Assigned supervisory and arrival of drivers. Once dispatch personnel must be drivers left the yard, one on-duty for all ART related dispatcher stays in the office operating functions to maintain two-way radio communications, while two dispatcher work in the field to monitor driver performance and to address any and operational issues that may arise in the field.

Communications The Franchisee shall provide Dispatch and supervision All buses are equipped with a Real-time GPS and CAD/AVL Availability of CAD AVL and and install a radio are provided by the 3rd party two-way radio to maintain systems are available at GTFS data allow for use of communications system vendor as part of the ART constant contact with dispatch to monitor ART real-time Text2Go service as that will allow for timely and must maintain radio supervisory personnel. Hand- operations, on-time well as real-time trip planning and efficient dispatching, communication with held radios are issued to the performance and schedule functions on ART’s website coordinating, and operators at all times. field dispatchers to facilitate adherence. This CAD AVL www.rideart.org. responding to necessary operations. In addition, all system supplements regular service calls. The system All buses and dispatch office dispatchers are issued a two-way radio may be of the Franchisee’s are equipped with a two- Nextel cell phone to maintain communications. choice, but must include the way radio system. radio and/or cell phone necessary performance communications. elements of the system.

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Franchise Service Standards - 2017

Shared Use of Bus The Franchisee shall The ATN uses shared bus The ATN uses shared bus pull- ATN added shared bus pull- Pull-Out Locations demonstrate understanding pull-out locations at the out locations at the Main out location for its of the operational Main Transportation Center Transportation Center at operations at Anaheim sensitivities of shared use at Disneyland Resort (East Disneyland Resort (East Regional Intermodal bus pull-out locations and a Esplanade). Dedicated ART Esplanade), Anaheim Transportation Center plan to accommodate the stops are assigned at the GardenWalk and Anaheim (ARTIC). multiple demands on these Main Transportation Center Convention Center. locations for all ART buses. Other shared bus pull-out ATN also shares numerous locations are at the lodging public bus stop locations with establishments. OCTA.

Record keeping Franchisee shall maintain ATN maintains its records in The ATN is required by FTA NO CHANGE records, in their original accordance with its regulations, as part of the form, in accordance with contractual obligations and receipt of the federal Section the franchise requirements adopted Record Retention 5307 and 5309 funds, to and in support of service Policy. maintain operating records provision, customer service, for seven (7) years. A safety record, training, computerized record keeping staffing, maintenance, and system (TransTrack) has been quarterly, monthly, and installed to track record and daily ridership statistical report operational data. reports.

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Franchise Service Standards - 2017

Reporting The Franchisee shall submit Reporting will be conducted The ATN will provide to the NO CHANGE quarterly reports to the City according to the final terms City of Anaheim a copy of the of Anaheim with all required of the requested franchise. annual report the agency operating data and system The ART record keeping submits to FTA on October 31st documentation system is more than of each calendar year. Upon adequate to guarantee that review and verification of the necessary data will be data, FTA issues approval kept. Operations and and/or disapproval of the administrative staff are report. ATN will forward the committed to meeting all final report to the City of franchise terms. The ATN Anaheim upon receipt of the has a long history of final approval from FTA. satisfactory completion of all contacted reporting requirements of the City of Anaheim, and the ART system will be no different.

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Franchise Service Standards - 2017

Financial The Franchisee shall The ATN retains NO CHANGE Developed a recommended maintain a system of independent 3rd party approach for determining a internal fiscal control in auditors to provide annual pro-rata share financial accordance with generally financial reports to the contribution (Cost Allocation accepted accounting Board of Directors. Upon Model) applicable initially to practices. Internal fiscal approval of the audited those entities required to control comprises the plan financial statements by the participate as a mitigation of organization and all of ATN Board of Directors, a measure and complementary the coordinated methods copy will be forwarded to Will Serve Request Process to and measures adopted the City of Anaheim. provide information on within an organization to transportation services for safeguard its assets, check proposed development the adequacy and the projects within the City of reliability of its accounting Anaheim Special Plan areas data, promote operating and within ATN service area. efficiency, assure adherence to prescribed management policies, and properly account for project income and expenses.

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Franchise Service Standards - 2017

Monitoring Standards

Evaluation Franchisee shall conduct an The ATN retains staff to The ATN retains staff to NO CHANGE ongoing, thorough program gather passenger input. The gather passenger input. of passenger satisfaction staff is provided by the Guest Transportation evaluation. The results of Anaheim/Orange County Assistance provide guidance this evaluation shall be Visitor and Convention and information at the Main included in all required Bureau (Red Coats). In Transportation Center every franchise reporting addition, the ATN has an Friday-Sunday and on internal Mystery Shopper Holidays. Internal Mystery program designed Shopper program is designed specifically to monitor driver specifically to monitor driver performance. The Red performance. Coats work every weekend at the Main Transportation Mystery Shoppers are Center at Disneyland Resort employed randomly during off-season time and approximately two to three every day during peak days per week on four-hour season. Mystery Shoppers shifts. are employed randomly approximately two to three days per week on four-hour shifts.

Audits At any time during normal Financial documents for the The ATN submitted audited NO CHANGE business hours and as often last 3 years of ATN financial statements to the as the City may deem operations. During this City of Anaheim. Should the necessary and after time, no findings were made City need to inspect any and reasonable notice, the by independent review all records in regard to the Franchisee shall make accounts. The ATN’s ATN operations, ART service, available to the City for internal control procedures etc., all records are examination, all necessary have been audited without maintained either on records with regard to the any negative findings. premises or at a secure service provision. storage location.

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Franchise Service Standards - 2017

Safety Standards

Farebox Operations Franchisee shall establish ART is a fare based system, ART is a fare based system. Mobile ticketing options are fare control access control but only the ART fare media Only approved and ATN- available through Token system for all services is accepted aboard ART issued fare media is accepted Transit Mobile Application conducted under the terms buses – no sales of any type aboard ART buses – no pass (APP). ATN is developing its of the requested franchise, are made on board. The ATN sales of any type are allowed own Mobile App, which will for the safety of all is in the process of selecting on board. The ATN installed be available by mid-2019. passengers and vehicle and negotiating with an computerized, validating fare operators. electronic payment system boxes on the entire fleet. to further enhance the Cash is accepted through a safety and privacy of our validated farebox, but drivers guests and their financial do not provide change. data. Fareboxes are equipped with a secure cash vault system. Cash collected in the fareboxes is emptied weekly by ATN personnel using a mobile vault system

Insurance Franchisee must maintain ATN insurance coverage is NO CHANGE NO CHANGE auto insurance coverage annually provided to the City levels of at least $25 Million of Anaheim per occurrence for all Resort Passenger Shuttling vehicles, and general liability insurance of at least $10 Million.

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Franchise Service Standards - 2017

Operational Safety The Franchisee shall have in The ATN’s through its The ATN’s through its NO CHANGE place and at all times abide contractor, Coach USA contractor, MV Public by a written Safety provides a comprehensive Transportation, Inc,1 Program. The Franchisee’s driver safety training provides a comprehensive Safety Program shall at a program. Required driver safety training minimum comply with classroom style classes are program. Required classroom applicable Federal conducted every other style classes are conducted regulations of the month for all ART drivers. every other month for all ART Occupational Health and Classes dealing with sexual drivers. Classes dealing with Safety Administration, and harassment, drug and sexual harassment, drug and any amendments thereto, alcohol testing (reasonable alcohol testing (reasonable as well as any other suspicion) are conducted suspicion) are conducted pertinent Federal, state, annually. In addition, driver annually. In addition, driver and/or local safety or “rodeo” safety training “rodeo” safety training environmental laws, codes, contests are done contests are done rules or regulations. approximately every six approximately every six months. months.

1 ATN contractor Transdev North America assumed operational responsibility in November 2016.

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