Lbtransit.Com Or Telephone at 562.599.8554

LONG BEACH TRANSIT THURSDAY, MAY 28, 2020 BOARD OF DIRECTORS MEETING VIA VIDEOCONFERENCE, 12:00 PM AGENDA

Colleen Bentley, Chair Sumire Gant, Director Michael Clemson, Vice Chair David H. Sutton, Director Adam Carrillo, Secretary/Treasurer Lea Eriksen, City Representative Jeffrey Price, Director Kenneth A. McDonald, President and Chief Executive Officer

BOARD MEETING VIA VIDEO CONFERENCE PURSUANT TO EXECUTIVE ORDER N-29-20 ISSUED BY GOVERNOR GAVIN NEWSOM

(888) 475-4499 (TOLL-FREE) MEETING ID: 940 3315 1748 PASSWORD: 1963

ZOOM MEETING LINK: https://zoom.us/j/94033151748?pwd=N1VCR0RnbnJhNVpBZEprbmdFcVF0Zz09

THE CIVIC CHAMBERS WILL BE CLOSED TO THE PUBLIC

PERSONS WISHING TO ADDRESS THE BOARD MUST SUBMIT PUBLIC COMMENT VIA EMAIL OR TELEPHONE NO LATER THAN 9 A.M.,THURSDAY, MAY 28, 2020.

Public comments on agenda items may be submitted by email to [email protected] or telephone at 562.599.8554.

If calling, please leave a voicemail with your name (please state it clearly), your telephone number for a return call, and the item number you would like to comment on (or specify "public comment").

If emailing, please include your name, your telephone number for a return call, and the item number you would like to comment on (or specify "public comment").

All public comment requests need to be submitted no later than 9 a.m., Thursday, May 28 2020.

More information on this process may be found at ridelbt.com/about-us

Page 1 of 4 LONG BEACH TRANSIT THURSDAY, MAY 28, 2020 BOARD OF DIRECTORS MEETING VIA VIDEOCONFERENCE, 12:00 PM AGENDA

REGULAR MEETING - NOON

1. Call to Order. (Colleen Bentley)

2. Roll Call. (Ivette Dubois)

3. Employee Recognition. (Debra Johnson)

Employees of the Month for May 2020:

Dorsey Holmes, Transit Service Delivery and Planning Alex Sagbigsal, Maintenance and Infrastructure Sokin Seng, Staff

INFORMATION ITEM

4. Public Comment.

5. President and CEO Monthly Report. (Kenneth McDonald)

• Response and Actions to COVID-19

INFORMATION ITEM

NOTICE TO THE PUBLIC

All matters included on the Consent Calendar are considered routine by the LBT Board of Directors and will be enacted by one motion. There will be no separate discussion of these items unless a member of the Board of Directors or the public so requests, in which event the matter shall be removed from the Consent Calendar and considered as a separate item.

CONSENT CALENDAR (6)

6. 20-025TR Recommendation to approve the minutes of the regular session meeting held on April 23, 2020. Suggested Action: Approve recommendation.

Page 2 of 4 LONG BEACH TRANSIT THURSDAY, MAY 28, 2020 BOARD OF DIRECTORS MEETING VIA VIDEOCONFERENCE, 12:00 PM AGENDA

REGULAR CALENDAR

7. 20-026TR Monthly Financial Report. (Lisa Patton)

INFORMATION

8. 20-027TR Recommendation to authorize the President and CEO to enter into a three-year contract with two, one-year options with Windes, Inc., to perform financial audit and Single Audit services, for a total authorization amount not to exceed $480,900. (Lisa Patton) Suggested Action: Approve recommendation.

9. 20-028TR Recommendation to approve Long Beach Transit's Statement of Investment Policy. (Lisa Patton) Suggested Action: Approve recommendation.

10. 20-029TR Recommendation to authorize the President and CEO to enter into a contract with ETA Transit for the supply and installation of 18 solar-powered, ePaper digital information signs at selected City of Signal Hill bus stops for an amount of $260,619 with a five percent contingency amount of $13,031, for a total authorization amount not to exceed $273,650. (Debra Johnson) Suggested Action: Approve recommendation.

11. 20-030TR Recommendation to adopt a resolution approving implementation of the COVID-19 related distributions provisions of the Coronavirus Aid, Relief and Economic Security (CARES) Act with respect to the Long Beach Transit 457(b) Deferred Compensation Plan for Governmental Employers and the Long Beach Transit 401(a) Matching Contribution Plan and Authorizing Subsequent Amendment of the Plans. (Debra Johnson) Suggested Action: Approve recommendation.

12. 20-031TR Recommendation to adopt a resolution approving the pilot commuter express service titled UCLA/Westwood Express Service as a permanent service and the corresponding commuter express fare structure. (Debra Johnson) Suggested Action: Approve recommendation.

Page 3 of 4 LONG BEACH TRANSIT THURSDAY, MAY 28, 2020 BOARD OF DIRECTORS MEETING VIA VIDEOCONFERENCE, 12:00 PM AGENDA

13. 20-032TR Recommendation to adopt a resolution authorizing the President and CEO to extend the Fiscal Year 2020 budget spending levels through the first quarter of Fiscal Year 2021 (July 2020 - September 2020), allowing Long Beach Transit to legally encumber and expend funds in the absence of an adopted Fiscal Year 2021 budget. (Kenneth McDonald) Suggested Action: Approve recommendation.

14. Board Requests.

15. Closed Session.

1) Conference with Real Property Negotiations (§54956.8) Property: 4801 Airport Plaza Drive, Long Beach, CA 90815; AIN: 7149-013-923 / 7149-013-924 Long Beach Transit Negotiators: Kenneth McDonald, Debra Johnson, Lisa Patton Negotiating Parties: City and Port of Long Beach Under Negotiation: Purchase

16. 20-033TR Adjourn. The next regular meeting will be held on June 25, 2020. (Colleen Bentley) Suggested Action: Approve recommendation.

Note:

Long Beach Transit intends to provide reasonable accommodations with the Americans with Disabilities Act of 1990. If special accommodation is desired, please call the Board Secretary's Office 48 hours prior to the meeting at 562.599.8554.

Long Beach Transit is an entity which is separate and distinct from the City of Long Beach.

Page 4 of 4 LONG BEACH TRANSIT THURSDAY, APRIL 23, 2020 BOARD OF DIRECTORS MEETING VIDEO CONFERENCE, 12:00 PM MINUTES

BOARD MEETING VIA VIDEO CONFERENCE PURSUANT TO EXECUTIVE ORDER N-29-20 ISSUED BY GOVERNOR GAVIN NEWSOM

(888) 475-4499 (TOLL-FREE) MEETING ID: 302 004 733

REGULAR MEETING - NOON

1. Call to Order. (Colleen Bentley)

The meeting was called to order at 12:03 p.m.

2. Roll Call. (Ivette Dubois)

Commissioners Jeffrey Price, Sumire Gant, David Sutton, Adam Carrillo, Michael Present: Clemson and Colleen Bentley

3. Public Comment.

There were no public comments.

Page 1 of 8 LONG BEACH TRANSIT THURSDAY, APRIL 23, 2020 BOARD OF DIRECTORS MEETING VIDEO CONFERENCE, 12:00 PM MINUTES

4. President and CEO Monthly Report. (Kenneth McDonald)

• Response and Actions to COVID-19

INFORMATION ITEM

Kenneth McDonald, President and CEO, presented his monthly oral report, which highlighted Long Beach Transit’s response to COVID-19 including actions taken since the week of February 3, 2020, following the first reported COVID-19 cases in the United States.

· On March 4, Long Beach Public Health and City officials declared health and city emergencies to strengthen the City’s preparedness and ability to respond to COVID- 19. The City’s announcement came the same day Los Angeles County declared a state of emergency.

LBT formed a cross-departmental Health and Safety Executive Taskforce to activate its response to the COVID-19 threat.

A statement was issued to all employees regarding the state of our community and to encourage employees to follow the CDC guidelines for personal hygiene and to prevent the spread.

· On March 5, LBT implemented an enhanced cleaning process. High contact areas, such as: o Bus Operator compartments; o Panels; o Doors; o Handrails; o Interior window frames; o Pull cords; o Seats; o Stanchions; and o Fare collection devices are more thoroughly cleaned with disinfectants.

· On March 22, LBT began operating a modified transit service delivery schedule from 6 a.m. to 9 p.m. daily.

· Beginning the week of March 23, LBT began distributing gloves to all Operators.

· On March 25, LBT implemented rear-door boarding in an effort to minimize its Operators’ exposure to others who may be affected and promote social distancing.

Page 2 of 8 LONG BEACH TRANSIT THURSDAY, APRIL 23, 2020 BOARD OF DIRECTORS MEETING VIDEO CONFERENCE, 12:00 PM MINUTES

· On March 26, in partnership with the Amalgamated Transit Union, Local 1277, ATU stewards began distributing face masks to LBT Operators.

· The week of April 6, LBT introduced the “Skip A Seat, Skip a Row and Stop the Spread” information campaign and installed plastic chains at front of the bus to create distance between Operators and customers.

The campaign is aimed at promoting social distancing on all LBT buses.

· On April 8, LBT ordered “germ” shields for LBT1 and LBT2 Dispatch locations to provide safeguards for both Operators and Dispatchers. These acrylic shields are similar to the ones that have been added at check-out counters at grocery stores. LBT expects to take delivery of the shields on April 29, 2020.

· On April 20, LBT began distributing face shields to Operators.

TEMPORARY LEAVE PROGRAMS

The health and safety of LBT employees and customers remains the agency’s top priority.

· On March 23 LBT implemented its own temporary leave program in advance of any federal leave programs.

LBT provided up to 80 hours of paid leave to qualified LBT employees who were afflicted with COVID-19, or were ordered to self-isolate or impacted by school and childcare closures.

On April 1, the federal “Families First Coronavirus Response Act of 2020” went into effect.

The Act expanded current leave programs such as the Family and Medical Leave Program and instituted an Emergency Paid Sick Leave program.

The programs, that expire on December 31, 2020, ensure that employees are able to address healthcare concerns related to the COVID-19 pandemic with limited or no loss of income.

CEO McDonald unveiled a video LBT intended to debut to its employees and customers regarding LBT’s collective efforts in the midst of the COVID-19 pandemic. He stated that LBT will share the video through social media channels and online.

Page 3 of 8 LONG BEACH TRANSIT THURSDAY, APRIL 23, 2020 BOARD OF DIRECTORS MEETING VIDEO CONFERENCE, 12:00 PM MINUTES

NOTICE TO THE PUBLIC

All matters included on the Consent Calendar are considered routine by the Long Beach Transit Board of Directors and will all be enacted by one motion. There will be no separate discussion of these items unless a member of the Board of Directors or the public so requests, in which event the matter shall be removed from the Consent Calendar and considered as a separate item.

CONSENT CALENDAR (5-6)

Passed the Consent Calendar

Chair Bentley made a motion to pull agenda item 6 from the Consent Calendar and move it to the Regular Calendar immediately after agenda item 7. Director Gant seconded the motion.

A motion was made by Director Gant, seconded by Vice Chair Clemson, to approve Consent Calendar Item 5. The motion carried by the following vote: Yes: 6 - Jeffrey Price, Sumire Gant, David Sutton, Adam Carrillo, Michael Clemson and Colleen Bentley

5. 20-020TR Recommendation to approve the minutes of the regular session meeting held on February 27, 2020.

A motion was made to approve recommendation on the Consent Calendar.

Page 4 of 8 LONG BEACH TRANSIT THURSDAY, APRIL 23, 2020 BOARD OF DIRECTORS MEETING VIDEO CONFERENCE, 12:00 PM MINUTES

REGULAR CALENDAR

7. 20-023TR Monthly Financial Report. (Lisa Patton)

INFORMATION ITEM

Lisa Patton, Executive Director/VP, Finance and Budget, presented the monthly financial report.

Director Gant asked that LBT staff provide information regarding the impact of COVID-19 on LBT's revenue at the next Board of Directors meeting.

Discussion ensued regarding the impact of COVID-19 on State Transit Assistance funding.

Secretary/Treasurer Carrillo asked when LBT anticipated a forecast of its revenues so the agency could budget appropriately.

Ms. Patton stated that the Los Angeles County Metropolitan Transportation Authority (Metro) would be taking its budget to its Board of Directors in September 2020 for adoption consideration. She added that LBT would get funding marks approximately one or two months prior to September 2020.

This TR-Agenda Item was received and filed.

Page 5 of 8 LONG BEACH TRANSIT THURSDAY, APRIL 23, 2020 BOARD OF DIRECTORS MEETING VIDEO CONFERENCE, 12:00 PM MINUTES

6. 20-021TR Recommendation to adopt two resolutions to enable Long Beach Transit to receive funding under the Low-Carbon Transit Operations Program (LCTOP):

1) A resolution authorizing the President and CEO to execute the Certifications and Assurances, along with all subsequent documents for the FY 2019-20 State LCTOP

2) A resolution authorizing the execution of the UCLA Westwood Commuter Express Operations Projects with $768,169 provided under LCTOP

Debra Johnson, Deputy CEO, presented the staff report.

Director Gant asked how much of the UCLA/Westwood Commuter Express service was paid by UCLA. Deputy CEO Johnson stated that UCLA subsidized its affiliates' passes. It was noted that the fare was seven dollars each way.

Director Gant referred to the Systemwide Transit Analysis and Reassessment (STAR) Initiative and asked that LBT look at the needs of its existing customers derived from the report, as she believed there were other Disadvantaged Communities (DAC) of which LBT could utilize Low-Carbon Transit Operations Program (LCTOP) funds.

Chair Bentley referred to the Transit and Intercity Rail Capital Program grant of which LBT was a recipient and asked if LBT could utilize the zero-emission over-the-road coaches for services other than the UCLA/Westwood Commuter Express service. Deputy CEO Johnson stated that LBT had yet to receive the award documentation related to the funding source.

A motion was made by Vice Chair Clemson, seconded by Secretary/Treasurer Carrillo, to approve recommendation. The motion carried by the following vote: Yes: 6 - Jeffrey Price, Sumire Gant, David Sutton, Adam Carrillo, Michael Clemson and Colleen Bentley

Page 6 of 8 LONG BEACH TRANSIT THURSDAY, APRIL 23, 2020 BOARD OF DIRECTORS MEETING VIDEO CONFERENCE, 12:00 PM MINUTES

8. 20-022TR Recommendation to authorize the President and CEO to enter into a three-year contract with Carl Warren and Company for the provision of management services for public liability and property damage claims and subrogation services, at a cost of $307,340, with two, one-year options at $99,369 for Option Year One and $102,350 for Option Year Two, for a total authorization amount not to exceed $509,059. (LaVerne David)

LaVerne David, Executive Director/VP, Employee and Labor Relations, presented the staff report.

This TR-Agenda Item was approve recommendation.

Yes: 6 - Jeffrey Price, Sumire Gant, David Sutton, Adam Carrillo, Michael Clemson and Colleen Bentley

9. Board Requests.

Director Gant asked staff to provide information regarding the impact of COVID-19 on LBT's revenue and ridership, as well as information regarding the funding for the acquisition of 4801 Airport Plaza Drive building.

10. 20-024TR Adjourn. The next regular meeting will be held on May 28, 2020. (Colleen Bentley)

The meeting adjourned at 12:50 p.m.

A motion was made by Vice Chair Clemson, seconded by Director Gant, to approve recommendation. The motion carried by the following vote: Yes: 6 - Jeffrey Price, Sumire Gant, David Sutton, Adam Carrillo, Michael Clemson and Colleen Bentley

Page 7 of 8 LONG BEACH TRANSIT THURSDAY, APRIL 23, 2020 BOARD OF DIRECTORS MEETING VIDEO CONFERENCE, 12:00 PM MINUTES

Note:

Long Beach Transit intends to provide reasonable accommodations in accordance with the Americans with Disabilities Act of 1990. If special accommodation is desired please call the Board Secretary’s Office 48 hours prior to the meeting at 562.599.8554.

Long Beach Transit is an entity which is separate and distinct from the City of Long Beach

Page 8 of 8 LONG BEACH TRANSIT STATEMENT OF REVENUES AND EXPENSES FOR PERIOD JULY 1, 2019 TO APRIL 30, 2020 Page 1 of 4

April April April Year to Date Year to Date Year to Date 2019 2020 Budget % FY2019 FY2020 Budget % OPERATING REVENUE PassengerFares $1,202,002 $31,090 $1,204,562 3 $11,575,842 $10,035,172 $11,571,741 87 DialALiftFares 5,340 860 5,495 16 53,500 46,804 55,013 85 AquaServiceFares 27,065 0 22,345 - 249,053 250,713 277,512 90 Special Event Service Revenue 21,500 0 23,500 - 248,145 237,012 242,000 98 AdvertisingRevenue 57,250 0 57,937 - 957,305 884,163 734,129 120 Interest&Miscellaneous 104,527 218,130 161,158 135 1,880,361 3,548,436 1,606,844 221

TOTALOPERATINGREVENUE $1,417,684 $250,080 $1,474,997 17 $14,964,207 $15,002,300 $14,487,239 104

SUBSIDY REVENUE Federal $0 $257,676 $260,000 99 $3,068,556 $2,507,676 $2,510,000 100 State 1,992,160 2,160,454 2,159,840 100 24,324,097 27,636,915 27,602,059 100 County 3,348,958 3,580,760 3,580,760 100 33,645,892 35,855,971 35,865,762 100 Local 0 303,880 427,496 71 4,951,817 5,632,083 5,747,666 98

TOTALSUBSIDYREVENUE $5,341,118 $6,302,769 $6,428,096 98 $65,990,362 $71,632,644 $71,725,487 100

TOTAL REVENUE $6,758,801 $6,552,849 $7,903,093 83 $80,954,569 $86,634,944 $86,212,726 100

OPERATING EXPENSES Operations $3,890,170 $4,006,825 $4,766,904 84 $38,914,653 $43,753,361 $46,890,337 93 Maintenance 1,548,704 1,415,045 1,746,913 81 15,332,888 16,626,544 17,439,574 95 Administration 1,902,421 2,289,397 1,907,281 120 18,939,850 17,065,744 19,356,936 88 Fuel&Lubricants 449,156 192,747 472,580 41 4,375,830 3,776,918 4,859,480 78

TOTALOPERATINGEXPENSES $7,790,450 $7,904,015 $8,893,678 89 $77,563,222 $81,222,566 $88,546,327 92

NET INCOME (LOSS) BEFORE DEPR. ($1,031,649) ($1,351,166) ($990,585) $3,391,347 $5,412,378 ($2,333,601)

DEPRECIATION $1,304,396 $1,312,283 $1,375,291 95 $13,583,586 $13,068,768 $13,752,910 95 LONG BEACH TRANSIT SCHEDULE OF EXPENSES FOR PERIOD JULY 1, 2019 TO APRIL 30, 2020 Page 2 of 4

TotalCurrent Month Year to Year to Date Operations Maintenance Admin Curr. Month Budget % Date Budget % LABOR Operators (Union) $2,078,242 $0 $0 $2,078,242 $2,537,484 82 $23,225,741 $24,710,939 94 Maintenance (Union) 0 423,015 0 423,015 490,627 86 4,760,375 4,875,448 98 Salaried 252,050 281,599 594,685 1,128,335 1,307,110 86 11,583,242 13,252,741 87

FRINGE BENEFITS FICA 158,690 49,202 44,344 252,236 330,100 76 2,736,352 3,243,160 84 Pension 318,588 97,593 90,264 506,445 654,516 77 5,488,215 6,476,434 85 Health 506,626 149,737 94,121 750,484 792,544 95 7,210,865 7,675,067 94 Workers' Compensation 323,849 27,562 2,756 354,167 354,751 100 3,547,822 3,547,510 100 Uniform & Tool Allowance 12,661 11,616 475 24,752 23,865 104 238,319 250,673 95 Unemployment & Other Fringes 2,803 600 6,330 9,733 34,330 28 217,784 411,754 53

SERVICES Advertising 0 0 68,069 68,069 67,087 101 516,634 696,220 74 Professional & Technical 10,245 5,960 276,229 292,433 296,266 99 2,362,336 2,975,100 79 Contract Maintenance 0 100,851 132,481 233,331 267,930 87 2,722,687 2,688,632 101 Security 247,852 20,421 0 268,274 261,114 103 2,682,810 2,773,969 97 Employment Physicals 0 0 7,380 7,380 11,459 64 103,691 114,590 90 Other 0 5,189 4,399 9,588 13,550 71 122,629 137,900 89 LONG BEACH TRANSIT SCHEDULE OF EXPENSES FOR PERIOD JULY 1, 2019 TO APRIL 30, 2020 Page 3 of 4

Total Current Month Year to Year to Date Operations Maintenance Admin Curr. Month Budget % Date Budget % MATERIALS & SUPPLIES Fuel & Lubricants $0 $192,747 $0 $192,747 $472,580 41 $3,776,918 $4,859,480 78 Fleet Parts & Supplies 0 143,732 0 143,732 268,345 54 2,969,256 2,689,584 110 Other Materials & Supplies 0 29,929 78,038 107,967 62,893 172 642,238 558,432 115

UTILITIES 0 45,448 34,935 80,383 99,009 81 882,444 1,072,197 82 CASUALTY/LIABILITY COSTS 0 0 771,915 771,915 289,858 266 3,188,164 2,898,580 110

PURCHASED TRANS. SERVICE Dial A Lift 58,826 0 0 58,826 91,653 64 803,009 890,499 90 Aqua Service 33,422 0 0 33,422 80,674 41 692,681 798,087 87

MISC. EXPENSES Dues & Subscriptions 0 0 10,333 10,333 14,813 70 141,236 148,130 95 Training, Travel & Meetings 0 0 7,335 7,335 32,084 23 259,137 320,840 81 Schedules & Tickets 0 0 0 0 6,333 - 124,231 153,330 81 Safety & Misc. Items 0 22,459 47,833 70,292 5,605 1,254 117,563 56,043 210 Recruitment Advertising 0 0 13,122 13,122 22,917 57 72,344 229,170 32 Other 2,971 131 4,353 7,455 4,181 178 33,844 41,818 81

TOTAL OPERATING EXPENSES: $4,006,825 $1,607,792 $2,289,397 $7,904,015 $8,893,678 89 $81,222,566 $88,546,327 92 LONG BEACH TRANSIT BALANCE SHEET

Page 4 of 4

Balance Balance Balance at at at 04/30/20 03/31/20 04/30/19 ASSETS Cash and Investments 82,920,842 81,782,550 76,076,199 Receivables Federal 504,600 44 44 State 2,051,482 2,051,482 1,514,406 County 93,832 780,317 398,699 Local 2,005,744 2,959,537 1,592,866 Miscellaneous 2,651,817 3,206,471 1,591,751 Materials & Supplies Inv. 2,455,063 2,409,250 2,077,516 Net Capital Assets 84,399,686 85,279,548 92,217,209 Other Assets 17,632,888 18,255,663 18,484,069

TOTAL ASSETS 194,715,955 196,724,862 193,952,760

LIABILITIES AND CAPITAL

Trade Payables 2,595,119 3,666,553 2,056,010 Accrued Payroll Liabilities 6,331,994 4,950,964 5,716,612 Net Pension Liability (GASB 68) 33,013,550 33,013,550 34,344,586 Compensated Absence Liabilities 3,236,056 3,232,536 3,394,055 Estimated Liabilities 49,031,993 48,915,924 43,827,217 Deferred Credits 24,635,107 24,842,967 23,116,209

TOTAL LIABILITIES 118,843,819 118,622,494 112,454,690

Federal Capital Contributions 309,162,897 308,916,017 306,935,202 State Capital Contributions 91,374,668 91,369,138 90,268,998 Local Capital Contributions 95,918,303 95,737,496 91,239,374 Accumulated Earnings (Losses) (420,583,732) (417,920,282) (406,945,504)

TOTAL CAPITAL 75,872,136 78,102,369 81,498,071

TOTAL LIABILITIES AND CAPITAL 194,715,955 196,724,862 193,952,760

LONG BEACH TRANSIT STATEMENT OF INVESTMENT POLICY

I. INTRODUCTION

Long Beach Transit (LBT) shall invest public funds in such a manner as to comply with state and local laws; ensure prudent money management; provide for daily cash flow requirements; and meet the objectives of the Policy, in priority order of Safety, Liquidity and Return on investment.

II. SCOPE

This Investment Policy applies to the financial assets of LBT under the direct authority of the Board of Directors, excluding pension plan assets which are covered under a separate Investment Policy. These assets are invested in accordance with the California Government Code, Sections 53600 et seq., and all other applicable federal, state and local laws, as well as using prudent money management. They are accounted for under enterprise funds and in accordance with the principles of Governmental Accounting Auditing and Financial Reporting (GAAFR).

Activities which comprise prudent cash management include accurate cash projections, the expeditious collection of revenue, the control of disbursements, cost-effective banking relations and a short-term borrowing program, if necessary, which includes coordinating working capital requirements and investment opportunity. Connected with the scope of these requirements are the many facets of an appropriate and secure short-term investment program.

III. OBJECTIVES

A. Safety

Safety of principal is the primary objective of LBT. Each investment transaction shall seek to ensure capital losses are avoided, whether from securities default, broker/dealer default or erosion of the market value. It is explicitly recognized herein, however, that in a diversified portfolio, occasional measured losses are inevitable and must be considered within the context of the overall investment return. LBT shall seek to preserve principal by mitigating the two types of risk: credit risk and market risk.

1. Credit Risk. It is hereby defined as the risk of loss due to failure of an issuer of a security. Credit risk shall be mitigated by investing in only very safe institutions and by diversifying the fund so that the failure of any one institution would not unduly harm LBT’s cash flow.

2. Market Risk. In money matters, it is defined as the risk of market value fluctuations due to overall changes in the economy and level of interest rates. The market risk shall be mitigated by limiting the weighted average maturity of the securities to two (2) years. Further, no investment shall be made which at the time of investment has a term remaining to maturity in excess of five (5) years. This excludes those securities underlying a repurchase or reverse repurchase agreement.

B. Liquidity

The investment portfolio will remain sufficiently liquid to enable LBT to meet all operating requirements which might be reasonably anticipated. Liquid short-term accounts represent vital objectives by which an adequate percentage of the portfolio should be maintained. They can be easily converted to cash, if necessary, to meet disbursement requirements. LBT may experience unexpected or unusual circumstances that result in some investments needing to be sold to meet a contingency. Emphasis should be on marketable securities with low sensitivity to market risk.

C. Return on Investment

LBT’s investment portfolio shall be designed to attain a market-average rate of return through economic cycles. The market-average rate of return is defined as the average return on three (3)-month U.S. Treasury Bills. Whenever possible, and consistent with risk limitations, as defined herein, and prudent investment principals, LBT shall seek to augment returns above the market average rate of return. Return on investment is of secondary importance compared to the safety and liquidity objectives described above. Securities shall not be sold prior to maturity with the following exceptions: (1) a security with declining credit may be sold early to minimize loss of principal; (2) a security swap would improve the quality, yield or target duration in the portfolio; or (3) liquidity needs of the portfolio require the security be sold.

D. Prudence

The standard of prudence to be used by the designated representative shall be the “prudent investor” standard and shall be applied in the context of managing the overall portfolio. Persons authorized to make investment decisions on behalf of local agencies investing public funds are trustees and therefore fiduciaries subject to the prudent investor standard which states, “When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.”

E. Ethics and Conflicts of Interest

Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Employees and investment officials shall disclose any material interest in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the Agency.

IV. INVESTMENT LIMITATIONS

LBT adheres to its internal policy and context of the “prudent investor” rule by which its obligation and fiduciary responsibility are maintained within the statutory limits of the California Government Code, Sections 53600 et seq. Investments in any security or fund other than Local Agency Investment Fund requires concurrence from the President and Chief Executive Officer or his/her designee. Within the scope and content of these limitations, the following investments are authorized, as further limited herein:

V. QUALIFIED INSTITUTIONS AND DEALERS

LBT shall transact business only with banks, savings and loans and registered investment securities dealers. The purchase of any investment other than those purchased directly from the issuer shall be purchased either from an institution licensed by the state as a broker/dealer or a brokerage firm designated as a primary Government Dealer by the Federal Reserve Bank. Prior to any investment with the broker/dealer LBT shall request a letter from the institution stating their interests, references, status and fee structures. In addition, LBT shall provide a current edition of the Statement of Investment Policy to all brokers/dealers which have been previously approved to handle investment transactions.

All financial institutions and broker/dealers who desire to conduct investment transactions with LBT must supply the Executive Director and Vice President of Finance and Budget with proof of SEC investment adviser registration and proof of State of California registration.

VI. SAFEKEEPING OF SECURITIES

To protect against potential losses caused by collapse of individual securities dealers, all securities owned by LBT including collateral on repurchase agreements, but necessarily excluding securities used as collateral for reverse repurchase agreements, shall be placed with an independent third party for custodial safekeeping, acting as agent for LBT under the terms of a custody agreement executed by the custodial agent and LBT. All securities will remain in the name of LBT and be received and delivered pursuing standard delivery versus payment procedures.

VII. CONFIRMATION

The confirmations or receipts should include the following information: trade date, par value, maturity, rate, yield, settlement date, description, agency’s name, net amount due, and third-party custodial information. Confirmations of all investment transactions are to be received within three (3) business days.

VIII. REPORTING

Under the provisions of Section 53646 of the California Government Code, LBT shall annually provide to the LBT Board of Directors a Statement of Investment Policy which the Board of Directors shall consider at a public meeting. Any changes in the Investment Policy shall also be considered by the Board of Directors at a public meeting.

The Executive Director and Vice President of Finance and Budget shall provide a quarterly report to the President and Chief Executive Officer, the City Auditor and the Board of Directors within 30 days following the end of the quarter covered by the report. This report shall include the type of investment, issuer, date of maturity, par and dollar amount invested on all securities, investments and monies held by LBT, and shall additionally include a description of any of LBT’s funds, investments, or programs, that are under the management of contracted parties, including the lending programs. With respect to all securities held by LBT, and under management of any outside party that is not also a local agency or the State of California Local Agency Investment Fund, the report shall also include a current market value as of the date of the report, and shall include the source of this same valuation.

The report shall state compliance of the portfolio to the Statement of Investment Policy and a statement of the ability of the local agency to meet its pool’s expenditure requirements for the next six months.

IX. INTERNAL CONTROLS

LBT has developed a system of internal control, established and documented in writing. The controls are designed to minimize and prevent losses arising from fraud, employee error, misrepresentations of third parties and unanticipated change in financial markets or imprudent actions. Controls deemed most important are: control of collusion, including segregation of duties and separation of transaction authority from accounting and recordkeeping; written confirmation of telephone transactions and wire transfers; and conflict of interest.

X. DELEGATION OF AUTHORITY

The President and Chief Executive Officer shall assign the responsibility to the Executive Director and Vice President of Finance and Budget, who shall invest the agency’s funds in accordance with the California Government code 53600 et seq., while meeting the criteria for safety and liquidity. The Executive Director and Vice President of Finance and Budget shall be responsible for all transactions undertaken and shall establish written procedures which include explicit delegation of authority and a system of control to regulate the activities of subordinate officials.

In the absence of the Executive Director and Vice President of Finance and Budget, the authority to execute investment transactions affecting the fund will be restricted and assigned jointly to the designated officers acting temporarily under the direction of the President and Chief Executive Officer.

XI. DIVERSIFICATIONS

LBT will diversify its investments by economic regions designated by the LBT Board of Directors considering the security type and institution involved. LBT’s cash investment fund is prohibited against excessive concentration in a specific maturity sector.

XII. POLICY REVIEW

This Investment Policy shall be reviewed at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidity, yield, safety measures, its compliance with current law, financial and economic trends, Governmental Accounting Standards Board (GASB), and to meet the needs of LBT.

XIII. GLOSSARY

AGENCIES: Federal agency securities and/or government-sponsored enterprises.

ASKED: The price at which securities are offered.

BANKERS’ ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.

BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments.

BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer.

BROKER: A broker brings buyers and sellers together for a commission.

6 CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a Certificate. Large-denomination CD’s are typically negotiable.

COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.

COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report of LBT. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.

COUPON: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a payment date.

DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.

DEBENTURE: A bond secured only by the general credit of the issuer.

DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.

DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities).

DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.

DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued a discount and redeemed at maturity for full face value (e.g., U.S. Treasury Bills.)

DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns.

DURATION: A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. Duration is expressed as a number of years. Rising interest rates mean falling bond prices, while declining interest rates mean rising bond prices.

FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L’s, small business firms, students, farmers, farm cooperatives and exporters.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per entity.

FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations.

FEDERAL HOME LOAN BANKS (FHLB): Government-sponsored wholesale banks (currently 12 regional banks), which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. The mission of the FHLBs is to liquefy the housing- related assets of its members who must purchase stock in their district Bank.

FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA, was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation’s purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.

FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money.

FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system.

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FHA mortgages. The term “pass-throughs” is often used to describe Ginnie Maes.

LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.

LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment.

MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.

MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase—reverse repurchase agreements that establishes each party’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller borrower.

MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.

MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded.

8 OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked and Bid.

OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve’s most important and most flexible monetary policy tool.

PORTFOLIO: Collection of securities held by an investor.

PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC)-registered securities broker-dealers, banks and a few unregulated firms.

PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state—the so-called legal list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.

QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits.

RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return.

REPURCHASE AGREEMENT (REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security “buyer” in effect lends the “seller” money for the period of the agreement, and the terms of the agreement are structured to compensate him/her for this.

REVERSE REPURCHASE AGREEMENT (REVERSE REPO): A reverse-repurchase agreement (reverse repo) involves an investor borrowing cash from a financial institution in exchange for securities. The investor agrees to repurchase the securities at a specified date for the same cash value plus an agreed upon interest rate. Although the transaction is similar to a repo, the purpose of entering into a reverse repo is quite different. While a repo is a straightforward investment of public funds, the reverse repo is a borrowing.

SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection.

SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution.

SECURITIES AND EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation.

SEC RULE 15(C)3-1: See Uniform Net Capital Rule.

9 STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, SLMA, etc.) and Corporations, which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve.

TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months or one year.

TREASURY BONDS: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years.

TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years.

UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms, as well as nonmember broker-dealers in securities, maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.

YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.

Adam Carrillo Secretary/Treasurer, Board of Directors

Date

Agenda Item No. 11 May 28, 2020 ______

SUBJECT

Implementation of the COVID-19 Related Distributions Provisions of the Coronavirus Aid, Relief and Economic Security (CARES) Act Authorizing Resolution (Staff Representative: Debra Johnson)

RECOMMENDED ACTION

To adopt a resolution approving implementation of the COVID-19 related distributions provisions of the Coronavirus Aid, Relief and Economic Security (CARES) Act with respect to the Long Beach Transit 457(b) Deferred Compensation Plan for Governmental Employers and the Long Beach Transit 401(a) Matching Contribution Plan and Authorizing Subsequent Amendment of the Plans.

BACKGROUND

Long Beach Transit (LBT) currently maintains the Long Beach Transit 457(b) Deferred Compensation Plan for Governmental Employers and the Long Beach Transit 401(a) Matching Contribution Plan (collectively referred to as “the Plans”).

The Internal Revenue Code (IRC) 457(b) Plan is voluntary for all employees and allows them to make deferral contributions towards retirement. In accordance with the IRC and Internal Revenue Service (IRS) requirements, LBT must adopt a Deferred Compensation Plan that governs the administration of the Plan. LBT’s deferred compensation plan provider, Voya, provides the Plan document and updates it periodically based upon changes in laws and best practices.

The 401(a) Plan covers all regular, full-time employees who are not eligible to participate in any defined benefit plan sponsored by LBT. The 401(a) Plan provides non-elective and matching contributions to eligible participants. Best Best & Krieger provides the Plan document and periodically updates it based upon changes in laws and best practices. Voya serves as the 401(a) Plan recordkeeper.

There is currently a local, state and national emergency related to the COVID-19 pandemic. This pandemic has resulted in significant economic impacts throughout the nation.

As a result, on March 27, 2020, the Coronavirus Aid, Relief and Economic Security (CARES) Act became law. Among other provisions, the CARES Act provides several options that an entity can adopt in order to provide some financial relief to qualified plan participants impacted by COVID-19.

To assist qualified plan participants impacted by COVID-19, LBT staff proposes that LBT’s Board of Directors adopt the following recommendations:

Meeting of the Long Beach Transit Board of Directors Page 1 of 4

UCLA/WESTWOOD COMMUTER EXPRESS PILOT PROGRAM SERVICE AND FARE EQUITY ANALYSIS

Long Beach Transit | www.lbtransit.com – Recipient ID: 1652 Submitted: May 2020

1963 E. Anaheim St., Long Beach, CA 90813

Kellie S. Irving, Regulatory Compliance and Civil Rights Officer (Title VI Officer)

Email: [email protected] p: 562.489.8476 | f: 562.218.199

1 TABLE OF CONTENTS

INTRODUCTION ...... 3 LONG BEACH TRANSIT ...... 3

LBT ORGANIZATIONAL FOCUS ...... 4 LBT SERVICE AREA...... 5 LBT MINORITY AND LOW-INCOME DATA ...... 5 LBT Service Area Map ...... 7 LBT Service Area Map – Minority and Low-Income Census Tracts ...... 8 LBT Service Area Map – Minority Percentage by Census Tracts ...... 9 LBT Service Area Map – Minority Percentage by Census Tracts ...... 9 LBT Service Area Map – Low-Income Population by Census Tracts ...... 10 UCLA/WESTWOOD COMMUTER EXPRESS ROUTE ...... 11

UCLA/WESTWOOD COMMUTER EXPRESS ROUTE SERVICE AREA ...... 12 UCLA/WESTWOOD COMMUTER EXPRESS ROUTE MINORITY AND LOW-INCOME DATA ...... 12 Service Area Map ...... 14 Service Area Map – Minority Percentage by Census Tracts ...... 15 Service Area Map – Median Household Income by Census Tracts ...... 16 LBT MAJOR SERVICE CHANGE POLICY ...... 17 DISPARATE IMPACT AND DISPROPORTIONATE BURDEN POLICIES ...... 17

DISPARATE IMPACT ...... 17 DISPROPORTIONATE BURDEN ...... 17 MAJOR SERVICE CHANGE AND FARE EQUITY ANALYSIS DATA ...... 17

MAJOR SERVICE CHANGE ...... 18 FARE EQUITY ...... 18 CUSTOMER SURVEY – FARE TYPE ...... 19 CUSTOMER SURVEY – MINORITY POPULATION PERCENTAGES ...... 20 CUSTOMER SURVEY – ANNUAL HOUSEHOLD INCOME PERCENTAGES ...... 20 FARE EQUITY ANALYSIS ...... 21 PUBLIC PARTICIPATION...... 21 CUSTOMER TESTIMONY ...... 22 CONCLUSION ...... 22 APPENDICES ...... 23

APPENDIX A – UCLA/WESTWOOD COMMUTER EXPRESS SERVICE FARE TYPE ACTUALS ...... 24 APPENDIX B – ROUTE 510 CUSTOMER SURVEY AND RESULTS ...... 26 APPENDIX C – PUBLIC PARTICIPATION DOCUMENTATION ...... 33 APPENDIX D – PUBLIC COMMENTS ...... 51

2 INTRODUCTION

In April 2019, Long Beach Transit (LBT) piloted its first commuter express route, Route 510 – the University of California, Los Angeles (UCLA)/Westwood Commuter Express, to bridge the transit gap between the LBT service area and West Los Angeles. This pilot route offered customers not only an express ride between Long Beach and west Los Angeles, but included promotional fares of $4 one-way, $7 round-trip and $120 monthly 30-Day.

Before the pilot limited-stop route, LBT customers traveling by public transit would be required to transfer to a combination of three different transportation modes, taking approximately two and one half hours of travel time to reach west Los Angeles for an estimated fare of $4.25.

In compliance with the United States Department of Transportation’s Federal Transit Administration (FTA) Circular 4702.1B, LBT must evaluate whether Route 510 and the associated promotional fare becoming permanent, will have a discriminatory impact on minority and low-income populations in the LBT service area.

Per LBT’s Title VI Program and policies for Major Service Change and Fare Equity, LBT is required to conduct a Service and Fare Equity Analysis for any new route(s) and any fare change(s) to ensure compliance with Title VI of the Civil Rights Act of 1964, which states:

“No person in the United States shall, on the ground of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance.”

The Service and Fare Equity Analysis does not address whether LBT can commence a new route and increase fares, but if LBT does so in a fair and equitable manner. More specifically, this Service and Fare Equity Analysis is to define a threshold for determining whether the potential changes to existing LBT routes and transit fares will have a discriminatory impact based on race, color or national origin, or if an increase of fare will have a disproportionately high or adverse impact on minority and low-income populations.

LONG BEACH TRANSIT (LBT)

Long Beach Public Transportation Company, commonly known as Long Beach Transit or LBT, is a California nonprofit corporation established in 1963 to provide public transportation to the City of Long Beach and its neighboring cities. A seven-member Board of Directors govern LBT.

LBT is a municipal public transit agency in Los Angeles County, with a service area that covers 100 square miles. LBT’s service area encompasses a unique land-use pattern that reflects a diverse mix of residential, commercial and retail developments of varying densities. In Fiscal Year (FY) 2019, the LBT system served over 23 million annual boarding customers, with weekday average boardings of 73,051. LBT annually runs more than 7.7 million service miles

3 over 755,000 service hours using its 250 fixed-route bus fleet. Within the LBT service area, there are over 800,000 residents that live within one-quarter mile of an LBT bus stop.

LBT’s revenue fleet consists of 264 vehicles: 224 fixed-route service buses, 25 contingency fleet buses, 10 Dial-A-Lift vehicles, 4 water vessels and 1 over-the-road coach. LBT has adopted an alternative fuel strategy to buy, maintain and operate a diverse bus fleet for the future that currently includes gasoline-electric hybrid, CNG and zero-emission battery-electric buses. All buses use low-floor, curb-level technology, and all are fully ADA accessible. Fixed-route buses can accommodate up to three bicycles.

There are eight transit operators that currently connect to LBT’s service, including: the Los Angeles County Metropolitan Transportation Authority (Metro), the Orange County Transportation Authority (OCTA), Torrance Transit, Los Angeles Department of Transportation (LADOT), Norwalk Transit, The Carson Circuit, The Bus (City of Bellflower), and Cerritos On Wheels (COW). LBT also connects with the LAX FlyAway shuttle, which provides direct service to Los Angeles International Airport and Amtrak’s Thruway Bus Service at LBT’s First Street Transit Gallery. LBT connects to Metro’s “A” Line in downtown Long Beach, as well as Metro’s “C” Line in Downey.

LBT ORGANIZATIONAL FOCUS

LBT is dedicated to connecting communities and moving people…making everyday life better. LBT’s vision is to be a leading provider of transportation options delivering innovative and high- performing services within a multi-modal network that transforms the social, environmental and economic well-being of the diverse communities we serve. As an organization, LBT’s strategic priorities are to:  Improve safety and service quality;  Exercise financial accountability;  Foster employee engagement;  Enhance customer experience; and  Promote community and industry focus

The pilot UCLA/Westwood Commuter Express Route is aligned with LBT’s organizational focus. It is innovative and enhances the customer’s experience, promotes community and it is environmentally responsive and improves safety and accountability. One major environmental justice aspect is the overarching regional responsibility to help reduce carbon emissions in Southern California that continue to drive health and quality of life disparities in minority and low income communities. LBT has explored this service option to close transit gaps for customers in need of conscience and smart transit options; although, the needs of minority and low-income communities are vast and multi-dimensional. Some of the most critical and necessary needs provided by this pilot route include reliable and affordable transportation to health care providers, education and training institutions, and economic hubs for current and other employment opportunities.

LBT SERVICE AREA

LBT serves the cities of Long Beach, Signal Hill, Paramount, Lakewood, Artesia, Bellflower, Carson, Cerritos, Compton, Downey, Hawaiian Gardens, Los Alamitos, Norwalk and Seal Beach. Geographically, urban and densely populated neighborhoods are located in and around the downtown Long Beach area in the southwest portion of the city. LBT routes are evenly dispersed throughout the system to meet transit dependent and discretionary customers' travel needs including employment, educational institutions, medical hubs and entertainment centers. The boundaries of LBT’s 100-square-mile service area are the Glenn Anderson Freeway (I-105) to the north; the San Gabriel River Freeway (I-605) and the Orange County boundary line to the east; the Pacific Ocean to the south; and the Long Beach Freeway (I-710) and the Terminal Island Freeway (CA-47) to the west.

LBT MINORITY AND LOW-INCOME DATA

Minority – In 2017, the American Community Survey identified 848,449 residents in the 190 census tracts within LBT’s service area. These residents are concentrated in 182 residential census tracts, the other eight census tracts are considered non-residential. (For the purpose of LBT’s Title VI Program, census tracts in which the minority percentage exceeds 76.4 percent are defined as minority tracts.) (Table 1)

Table 1: LBT Service Area Minority Status

Income – In 2017, the American Community Survey identified 277,613 households in the 190 census tracts within LBT’s service area. Approximately 19 percent (18.9) of the households had an annual household income between $10,000 and $30,000, while another 23.8 percent of households were between $60,000 and $100,000. About 49 percent (48.5) of the households had an annual household income less than $60,000 in 2017. Table 2 provides a more detailed breakdown of LBT service area household income. Table 3 shows that over 44 percent of the census tracts had a median household income less than $60,000 in 2017. The average median household income was $64,584.

Table 2: Annual Household Income Percentages per Number of Households

Table 3: Annual Household Income Percentages per Number of Census Tracts

6 LBT Service Area Map

LBT Service Area Map – Minority and Low-Income Census Tracts

LBT Service Area Map – Minority Percentage by Census Tracts

LBT Service Area Map – Low-Income Population by Census Tracts

UCLA/WESTWOOD COMMUTER EXPRESS ROUTE During LBT’s comprehensive operational analysis, branded the Systemwide Transit Analysis and Reassessment (STAR) Initiative in January 2018, one of the long-term roadmap recommendations identified through the public engagement process was regional express service between Long Beach and the west side of Los Angeles. As the STAR Initiative process progressed, LBT received a great deal of positive feedback from commuters and UCLA employees participating in vanpools. As a result, representatives from UCLA reached out to LBT to discuss proposed express service and identify ways to implement this service in the near term, as opposed to five to seven years. LBT, with assistance from UCLA’s Transportation Department, identified nearly 2,000 community members in the Long Beach area that were commuting every day between the City of Long Beach and UCLA.

UCLA/WESTWOOD COMMUTER EXPRESS SERVICE AREA UCLA/Westwood Commuter Express (Route 510) is a limited-stop service between Long Beach and Westwood Village (Westwood) servicing regional customers. The UCLA/Westwood service area consists of a two-mile buffer along the route. The UCLA/Westwood Commuter Express has three morning departures from Long Beach and three afternoon/evening departures from Westwood. There are two stops in Long Beach and three stops in Westwood. The route is 32 miles each way.

UCLA/WESTWOOD COMMUTER EXPRESS MINORITY AND LOW-INCOME DATA Minority – In 2017, the American Community Survey identified a population of 1,426,577 residents in 327 census tracts within the UCLA/Westwood Commuter Express’ service area. These residents are concentrated in 313 residential census tracts; the other 14 census tracts are considered non-residential. As shown in Table 4, 68.45% percent of the residents are minority.

Table 4: UCLA/Westwood Commuter Express Service Area Minority Status Total Population Minority Non-Minority 1,426,577 976,562 68.45% 450,015 31.55% Source 2017 ACS by UCLA/Westwood Service Area Census Tracts DP05

Income – In 2017, the American Community Survey identified 511,003 households in the 327 census tracts within UCLA/Westwood Commuter Express’ service area. Approximately 17 percent (16.6) of the households had an annual household income between $10,000 and $30,000, while another 21.4 percent of households were between $60,000 and $100,000. Almost 45 percent (44.8) of the households had an annual household income less than $60,000 in 2017. Table 5 provides a more detailed breakdown of the UCLA/Westwood Commuter Express service area household income. Table 6 shows that over 37 percent of the census tracts had a median household income less than $60,000 in 2017. The average median household income was $74,856.

Table 5: Annual Household Income Percentages Number of Households

Annual Household Income Number of Households Percentage Less than $10,000 30,728 6.0% $10,000 – $19,999 41,458 8.1% $20,000 – $29,999 43,472 8.5% $30,000 – $39,999 39,783 7.8% $40,000 – $49,999 38,826 7.6% $50,000 – $59,999 34,921 6.8% $60,000 – $74,999 46,631 9.1% $75,000 – $99,999 62,812 12.3% $100,000 – $124,999 45,739 9.0% $125,000 – $149,999 31,995 6.3% $150,000 – $199,999 39,587 7.8% $200,000 or more 55,051 10.8% Total 511,003 100.0% Source 2017 ACS by UCLA/Westwood Service Area Census Tracts DP05

Table 6: Annual Household Income Percentages per Number of Census Tracts

Income Number of Census Tracts Percentage

1.5% Less than $20,000 5

$20,000 – $39,999 40 12.2% $40,000 – $59,999 76 23.2% $60,000 – $79,999 76 23.2% $80,000 – $99,999 59 18.0% $100,000 or more 57 17.4% Non-Residential Area 14 4.3% Total 327 100.0% Source: 2017 ACS by LBT Service Area Census Tracts - B19003

Ronald Reagan UCLA Medical Center: 2013

UCLA/Westwood Commuter Express Service Area Map

UCLA/Westwood Commuter Express Service Area Map – Minority Percentage by Census Tracts

UCLA/Westwood Commuter Express Service Area Map – Median Household Income by Census Tracts

LBT MAJOR SERVICE CHANGE POLICY All “major” increases or decreases in transit service are subject to a Title VI Service Equity Analysis prior to the LBT Board of Directors’ approval of the service change. A Title VI Equity Analysis completed for a “major” service change must be presented to the LBT Board of Directors for its consideration and included in the Long Beach Transit Title VI Program with a record of action taken by the Board.

The following types of service changes shall be considered “major:” a) the addition of a new route; b) the elimination of a route without alternative service or a replacement route within three-quarters of a mile of the existing service; c) a reduction of 25 percent or more in total vehicle revenue miles in service on any specific route; d) an increase of 25 percent or more in total vehicle revenue miles in service on any specific route; e) a change in the daily span of service or frequency affecting 25 percent or more of route’s vehicle hours; and f) a systemwide change concurrently affecting five percent or more of the total system revenue hours.

DISPARATE IMPACT AND DISPROPORTIONATE BURDEN POLICIES LBT’s Board of Directors adopted the following policies in April 2016 and were included in the Title VI Program submitted to the FTA in 2019.

Disparate Impact: LBT defines a “disparate impact” as occurring when an adverse effect of a major service or fare change on minority populations is at least 20 percent greater than the adverse effect on the average non-minority populations of LBT’s service area. For “major” service changes in which a Service or Fare Equity Analysis is conducted by LBT, a disparate impact threshold of 20 percent shall be used to determine if minority populations are more negatively affected.

Disproportionate Burden: LBT defines a “disproportionate burden” as occurring when an adverse effect of a major service or fare change on low-income populations is at least 20 percent greater than the adverse effect on the average non-low-income populations of LBT’s service area. For “major” service changes in which a Service or Fare Equity Analysis is conducted by LBT, a disproportionate burden threshold of 20 percent shall be used to determine if low-income populations are more negatively affected.

MAJOR SERVICE CHANGE AND FARE EQUITY ANALYSIS DATA LBT elected to use population data from census tracts to determine disparate impact and/or a disproportionate burden. Based on guidance from the FTA Title VI Circular 4702.1B, when proposing new service to a neighborhood or corridor not served by the transit system, the appropriate comparison population would be the population of the transit system’s service area and the population of the proposed route’s service area based on census tracts. Therefore, LBT’s analysis is based on census demographics and does not represent ridership.

Major Service Change

Table 7 and Table 8 analyzes whether or not Route 510 is equitable or creates adverse effects. The tables represent a cumulative impact statistical analysis comparing populations of LBT’s service area and the UCLA/Westwood Commuter Express service area, based on minority population and low-income population.

As stated in the LBT Title VI Program, LBT defines a “disparate impact” as occurring when an adverse effect of a major service or fare change on minority populations is at least 20 percent greater than the adverse effect on the average non-minority populations of LBT’s service area. For “major” service changes in which a Service or Fare Equity Analysis is conducted by LBT, a disparate impact threshold of 20 percent shall be used to determine if minority populations are more negatively affected.

Table 7: Service Change Cumulative Impacts for Minority Populations Minority % of Population Difference >20% Disparate Impact Route 510 LBT Service Area (76% - 68%) - - 68% 76% 8% No No

Table 8: Service Change Cumulative Impacts for Low-Income Populations Low Income % of Population Difference >20% Disparate Impact Route 510 LBT Service Area (44% - 37%) - - 37% 44% 7% No No

The data indicates no disparate impact for minority and low-income populations and there is no obvious disproportionate burden to low-income populations in the LBT service area should Route 510 become a permanent commuter express service.

Fare Equity

LBT is required to analyze whether or not the pilot fare structure for Route 510 creates adverse effects for low-income populations and minority populations. This analysis used an onboard customer survey conducted during the public participation process to assist in this evaluation.

As illustrated in Table 9, the comparison of LBT’s fares for the fixed-route and commuter express service indicates an increase in each fare category for Route 510. In addition, Table 10 indicates that there is no fare data for Route 510 prior to the pilot start date of April 1, 2019.

Although there are no changes to current local fixed-route fares, this analysis will determine whether Route 510 creates an inequality, thus a disproportionate burden for low-income populations in LBT’s service area should the route become permanent. The fare equity analysis

18 will (a) guide the permanent fare structure for the commuter express route and (b) institute fares during the next scheduled service change.

Table 9: Route 510 Fare Structure LBT One- Reduced Fare Round- Reduced Student Monthly Reduced Way (Senior/Disabled) Trip Day Pass Monthly 30-Day Monthly Fare Fare (Senior/Disabled) Pass 30-Day Fixed- $1.25 $0.60 $4.00 $2.50 $40.00 $65.00 $24.00 Route Local Route 510 $4.00 $2.00 $7.00 $3.50 $80.00* $120.00 N/A Commuter Express *UCLA Customers (Students and Affiliates (i.e., Faculty, Staff, etc.)) purchasing monthly passes through UCLA’s Central Ticket Office will have their passes subsidized by UCLA for $40, and UCLA provides payment directly to LBT. This means the customer will pay $80 directly to UCLA and the pass will be loaded onto the customer’s TAP Card.

Table 10: Route 510 Historical Fare Data Route 510 One- Reduced Fare Round- Reduced Student Monthly Reduced Commuter Way (Senior/Disabled) Trip Day Pass Monthly 30-Day Monthly Express Fare Fare (Senior/Disabled) Pass 30-Day April 1, $4.00 $2.00 $7.00 $3.50 $80.00* $120.00 N/A 2019

Customer Survey – Fare Type The Route 510 Customer Survey indicated that 42.1 percent of customers used the UCLA Monthly Pass, which is a UCLA-subsidized monthly pass provided to students and affiliates such as faculty and staff. Another 34.2 percent of customers used the LBT Mobile App as fare media, which allowed customers to buy their fare daily, one-way or round-trip. Combined, these two groups represented 76.3 percent, which is slightly over three-quarters of the overall survey respondents. Table 11 provides additional fare types used on Route 510. UCLA/Westwood Commuter Express Service Actual Fare Type data can be found in Appendix A.

Table 11: Route 510 Onboard Survey Fare Type Percentages Fare Type Number of Response(s) Response Ratio Cash – One Way 0 0.0% Cash – Round-Trip 6 7.8% TAP – Stored Value 11 14.4% LBT Mobile App 26 34.2% UCLA Monthly Pass 32 42.1% Other 1 1.3% No Responses 0 0.0% Total 76 100%

Customer Survey – Minority Population Percentages The Route 510 Customer Survey indicated that 42.1 percent of customers categorized themselves as Hispanic/Latino, 13.1 percent Asian, 9.2 percent African-American and 3.9 percent Pacific Islander, thus a total of 68.2 percent of minority customers. The non-minority customer percentage was 17.1 percent. Based on the Route 510 Customer Survey, the UCLA/Westwood Commuter Express is predominantly used by minority populations and is a rapid, reliable transportation alternative to driving alone, carpooling and three-leg public transit fixed routes. Table 12: Route 510 Onboard Survey Minority Population Percentages

Ethnic Group Number of Response(s) Response Ratio Hispanic/Latino 32 42.1% Asian 10 13.1% African-American 7 9.2% American Indian 0 0.0% Alaskan Native 0 0.0% Pacific Islander 3 3.9% Caucasian/White 13 17.1% Prefer not to disclose 9 11.8% Other 2 2.6% No Responses 0 0.0% Total 76 100%

Customer Survey – Annual Household Income Percentages The Route 510 Customer Survey indicated that 2.6 percent of customers with an annual household income less than $10,000 and 30.1 percent of customers between $10,000 and 50,000. There were 45.8 percent of customers with annual household income less than $75,000. There is 23.6 percent of customers with an annual household income greater than $75,000. The data indicates that the Route 510 is benefiting more low-income populations versus above median annual household incomes.

Table 13: Route 510 Onboard Survey Annual Household Income Percentages

Annual Household Income Number of Response(s) Response Ratio Less than $10,000 2 2.6% $10,000 – $19,999 7 9.2% $20,000 – $29,999 4 5.2% $30,000 – $39,999 5 6.5% $40,000 – $49,999 7 9.2% $50,000 – $74,999 10 13.1% $75,000 – $99,999 8 10.5% $100,000 or more 10 13.1% Prefer not to disclose 23 30.2% No Responses 0 0.0% Total 76 100%

FARE EQUITY ANALYSIS The Route 510 Customer Survey data analysis does not indicate the likelihood of any adverse effects or a disproportionate burden on low-income populations. Much like the major service change, the fare change does not create a disparate impact or disproportionate burden. Low- income populations are beneficiaries of the UCLA/Westwood Commuter Express Service. The Route 510 Customer Survey and results can be found in Appendix B.

PUBLIC PARTICIPATION Public involvement activities were conducted during the course of the pilot to solicit the public’s input. There were multiple notification platforms used to inform the public of the Public Participation meeting and to receive comments regarding the pilot service and promotional fare. Additional efforts were conducted to ensure Limited English Proficient (LEP) customers and People with Disabilities participated in the public involvement activities. Public Participation documentation can be found in Appendix C.

Onboard Survey  Customers surveyed onboard to provide input on their overall riding experience

LBT Website

 Header on homepage with email link to submit comments online  Extended public comments period for LEP and People with Disabilities to engage and comment

Facebook

 Promote service throughout pilot program  Post notification of public meeting and opportunity to comment

Instagram

 Post notification of public meeting and opportunity to comment

Twitter

 Tweet notification of public meeting and opportunity to comment Public Engagement

 Public Participation Meeting held at SkyLinks Golf Course, 4800 Wardlow Rd., Long Beach, CA 90808, on Wednesday, January 29, 2020

CUSTOMER TESTIMONY

This bus is needed!

I was selected to take this photo during UCLA Transportation Month Event. I was selected not because of popularity, but because I was one of the first of five people to take this bus on opening day (April 1, 2019) and the first to stand in line at 3:30 p.m. to wait for the 4:20 p.m. bus to arrive on the way home. I was selected out of determination and diligence. I was and still am determined to do whatever I can do (individually or collectively) to keep this bus actively running to serve our Westwood home away from home. Over my 25 years of service and using several other commute options, this has been the best by far. I have met new people and formed friendships that we can share information and ideas with one another and build a stronger more productive commute experience. Thank You, Althea Nelson

CONCLUSION LBT’s Route 510, the UCLA/Westwood Commuter Express service does not come at the expense of reductions on other fixed routes. Making Route 510 permanent is an overall enhancement to LBT’s existing and potential new customers. To better serve minority and low-income communities, Route 510 expands access to (1) quality, best-in-class medical services; (2) quality, public educational programs and training; and (3) a multitude of employment opportunities, with an assurance of having affordable, reliable and sustainable transportation.

Based on the population data, there is not a disparate impact on minority populations, nor is there a disproportionate burden on low-income populations when considering instituting the promotional fare as the commuter express service permanent fare.

LBT will continue monitoring the implementation and service delivery of the UCLA/Westwood Commuter Express Service, as well as the fare structure implementation, for any potential adverse effects on minority and low-income populations.

APPENDICES

Appendix A: UCLA/Westwood Commuter Express Service Fare Type Actuals

Appendix B: Route 510 Customer Survey and Results

Appendix C: Public Participation Documentation Social Media Posts

Facebook Instagram Twitter Public Meeting Rack Card

LBT UCLA/Westwood Commuter Express Public Meeting Presentation

UCLA Westwood Commuter Express Pilot

Michael Gold Executive Director/VP, Customer Relations and Communications

Kellie S. Irving Regulatory Compliance and Civil Rights Officer

January 29, 2020

Agenda

• LBT At-a-Glance

• Title VI Overview

• UCLA/Westwood Commuter Express Pilot

• Feedback and Comments

1 LBT UCLA/Westwood Commuter Express Public Meeting Presentation

Our Mission

Long Beach Transit is dedicated to connecting communities and moving people…making everyday life better

Long Beach Transit – At a Glance

250 buses. 35 routes. 13 cities.

23.8 mil. customers boarded LBT in 2019

100% mobility-device accessible. Special services such as Dial-A-Lift, LA Galaxy and LA Chargers Express, Museum Express and more.

2 LBT UCLA/Westwood Commuter Express Public Meeting Presentation

Long Beach Transit - Sustainability

89% alternatively fueled fleet. 125 CNGs, 88 hybrids and 10 battery-electric buses Tap is eco-friendly and designed to improve the transit experience Energy conservation includes energy – efficient lighting and off-peak equipment charging

Long Beach Transit – LBT Water Taxis

2 AquaBus vessels, 40 customers each 2 AquaLink vessels, 75 customers each Docks: LB Harbor, Queen Mary, Pine Ave. Circle, Aquarium, Shoreline Village and Alamitos Bay Landing

3 LBT UCLA/Westwood Commuter Express Public Meeting Presentation

Long Beach and Beyond

LBT routes connect to LA Metro, OCTA and other regional operators Customers can use an interagency transfer that can be easily loaded onto their TAP card 800,000 residents live within ¼ mile of LBT bus stops

Title VI of the Civil Rights Act of 1964

“No person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance”

4 LBT UCLA/Westwood Commuter Express Public Meeting Presentation

Title VI Program Requirements

• Major Service Change Analysis

• Fare Equity Analysis

• Language Assistance Plan

• Public Participation

Title VI Program Considerations

• Equal access to services (language barrier)

• Disproportionate Burden

• Disparate Impact

5 LBT UCLA/Westwood Commuter Express Public Meeting Presentation

UCLA / Westwood Commuter Express Pilot Background

• STAR Initiative Recommended Route • Freeway-based Route to Serve Regional Customers • Reduce Traffic Congestion

UCLA / Westwood Commuter Express Pilot Overview

• 60-foot Articulated Bus for maximum ridership • Three a.m. departure times from Long Beach • Three p.m. departure times from Westwood • Two stops in Long Beach and three stops in Westwood

6 LBT UCLA/Westwood Commuter Express Public Meeting Presentation

UCLA / Westwood Commuter Express Pilot Map

UCLA/Westwood Commuter Express Pilot Features

• Affordability – $7 round-trip fare • Convenience – Operates directly between Long Beach and Westwood • Time efficient – Instead of waiting in traffic, use time on the bus to read, work or relax • Eco-friendly – Less cars on the road, reducing your carbon footprint

7 LBT UCLA/Westwood Commuter Express Public Meeting Presentation

UCLA / Westwood Commuter Express Pilot Statistics

Upward Trend • 18,000 + boardings since April, 2019 • 112% increase in ridership between April, 2019 and November, 2019

UCLA / Westwood Commuter Express Pilot Stats

Ridership by month

April May June July Aug. Sept. Oct. Nov.

1,127 1,503 1,485 2,021 2,143 2,076 3,096 2,379

8 LBT UCLA/Westwood Commuter Express Public Meeting Presentation