Members Joe Kellejian, Chair Councilmember, Solana Beach (Representing North County Coastal) Jim Madaffer, Vice Chair Councilmember, City of San Diego Mickey Cafagna Mayor, Poway (Representing North County Inland) Jack Dale TRANSPORTATION Councilmember, Santee (Representing East County) Jerry Rindone COMMITTEE Councilmember, Chula Vista (Representing South County) AGENDA Ron Roberts Supervisor, County of San Diego Bob Emery Metropolitan Transit System Friday, June 3, 2005 Jack Feller Chair, North San Diego County 9 a.m. to noon Transit Development Board SANDAG Board Room Mary Teresa Sessom th San Diego County Regional 401 B Street, 7 Floor Airport Authority San Diego Alternates Jerome Stocks Councilmember, Encinitas (Representing North County Coastal) Scott Peters AGENDA HIGHLIGHTS Councilmember, City of San Diego Dick Murphy Mayor, City of San Diego • TRANSPORTATION PROGRAM FUNDING UPDATE Judy Ritter Councilmember, Vista • NOBEL DRIVE COASTER STATION REPORT (Representing North County Inland) Art Madrid Mayor, La Mesa (Representing East County) Phil Monroe Councilmember, Coronado (Representing South County) Pam Slater-Price Chairwoman, County of San Diego Dianne Jacob Supervisor, County of San Diego PLEASE TURN OFF CELL PHONES DURING THE MEETING

Leon Williams Chairman, Metropolitan Transit System YOU CAN LISTEN TO THE TRANSPORTATION COMMITTEE Judy Ritter North San Diego County MEETING BY VISITING OUR WEB SITE AT WWW.SANDAG.ORG Transit Development Board Ed Gallo North San Diego County Transit Development Board Xema Jacobsen MISSION STATEMENT San Diego County Regional Airport Authority The 18 cities and county government are SANDAG serving as the forum for regional decision-making. SANDAG builds consensus, makes strategic plans, obtains and allocates resources, plans, engineers, Advisory Members and builds public transit, and provides information on a broad range of topics pertinent to the Pedro Orso-Delgado region's quality of life. District 11 Director, Caltrans

Sandor Shapery San Diego Association of Governments ⋅ 401 B Street, Suite 800, San Diego, CA 92101-4231 Regional Planning Stakeholders Working Group (619) 699-1900 ⋅ Fax (619) 699-1905 ⋅ www.sandag.org

Gary L. Gallegos Executive Director, SANDAG

Welcome to SANDAG. Members of the public may speak to the Transportation Committee on any item at the time the Committee is considering the item. Please complete a Speaker’s Slip, which is located in the rear of the room, and then present the slip to Committee staff. Also, members of the public are invited to address the Committee on any issue under the agenda item entitled Public Comments/Communications/Member Comments. Speakers are limited to three minutes. The Transportation Committee may take action on any item appearing on the agenda.

This agenda and related staff reports can be accessed at www.sandag.org under meetings on SANDAG’s Web site. Public comments regarding the agenda can be forwarded to SANDAG via the e-mail comment form also available on the Web site. E-mail comments should be received no later than noon, two working days prior to the Transportation Committee meeting.

In compliance with the Americans with Disabilities Act (ADA), SANDAG will accommodate persons who require assistance in order to participate in SANDAG meetings. If such assistance is required, please contact SANDAG at (619) 699-1900 at least 72 hours in advance of the meeting. To request this document or related reports in an alternative format, please call (619) 699-1900, (619) 699-1904 (TTY), or fax (619) 699-1905.

SANDAG offices are accessible by public transit. Phone 1-800-COMMUTE or see www.sdcommute.com for route information.

2 TRANSPORTATION COMMITTEE June 3, 2005

ITEM # RECOMMENDATION

+1. APPROVAL OF MAY 20, 2005, MEETING MINUTES APPROVE

2. PUBLIC COMMENTS/COMMUNICATIONS/MEMBER COMMENTS

Members of the public will have the opportunity to address the Transportation Committee on any issue within the jurisdiction of the Committee. Speakers are limited to three minutes each and shall reserve time by completing a “Request to Speak” form and giving it to the Clerk prior to speaking. Committee members also may provide information and announcements under this agenda item.

CONSENT ITEMS (3-4)

+3. 2004 REGIONAL TRANSPORTATION IMPROVEMENT PROGRAM (RTIP) APPROVE AMENDMENT NO. 9 (Sookyung Kim)

The SANDAG Board, at its meeting on July 23, 2004, adopted the 2004 Regional Transportation Improvement Program (RTIP), the five-year program of major transportation projects in the San Diego region covering the period from FY 2005 to FY 2009. At the May 27, 2005, meeting, the SANDAG Board approved the inclusion of three transit projects into the Early Action Program. This amendment includes these projects and also makes revisions to existing projects. The Transportation Committee is asked to approve Resolution No. 2005-26, approving the 2004 RTIP Amendment No. 9

+4. FY 2006 TRANSPORTATION DEVELOPMENT ACT (TDA) ALLOCATIONS RECOMMEND (Sookyung Kim)

The Transportation Development Act (TDA) provides ¼ percent of the State sales tax for operating and capital support of public transportation systems and non-motorized transportation projects. SANDAG, as the designated Regional Transportation Planning Agency (RTPA), is responsible for the allocation of TDA funds to the region’s cities, the County, and transit operators. This report presents the allocation requests for the TDA Article 3, Article 4, Article 4.5, and Article 8 claims, and one State Transit Assistance (STA) claim. The Transportation Committee is asked to recommend that the SANDAG Board of Directors approve the final FY 2006 TDA allocations and Productivity Improvement goals.

3 CHAIR’S REPORT

5. TRANSIT OBSERVATIONS FROM CHINA (Supervisor Ron Roberts and INFORMATION Mayor Mary Sessom)

San Diego County Supervisor Ron Roberts and Lemon Grove Mayor Mary Sessom recently accompanied the San Diego Chamber of Commerce on a trip to China. While there, they toured the 19-mile Shanghai Transrapid Maglev project that serves the Pudong International Airport. Supervisor Roberts and Mayor Sessom will provide a verbal report on their trip and observations.

REPORTS (6-9)

+6. TRANSPORTATION PROGRAM FUNDING UPDATE (José Nuncio) INFORMATION

As part of the May revision of the Fiscal Year 2005/06 state budget, the Schwarzenegger administration is now proposing to restore Proposition 42 funds to transportation programs, as called for in the statute. This report discusses this proposal and its impact on transportation program funding.

+7. NOBEL DRIVE COASTER STATION – TRANSFER OF FEDERAL TRANSIT APPROVE ADMINISTRATION SECTION 5309 NEW STARTS FUNDS TO ANOTHER MID- COAST CORRIDOR PROJECT (Leslie Blanda)

SANDAG staff will discuss the status of and concerns related to development of the Nobel Drive Coaster Station. In order to ensure the Federal Transit Administration (FTA) New Starts funds programmed for the project are not lost, staff recommends requesting that the Transportation Committee approve a request to have FTA transfer the New Starts funds to the Super Loop early action project. Should FTA deny this request, staff would recommend transfer of the funds to either the Mid-Coast LRT or Sorrento Valley Coaster Station. Staff would recommend re-examining the need for Coaster access in the Mid-Coast area once the Super Loop is implemented.

+8. FREEWAY SERVICE PATROL (FSP) ACTIVITIES (Derek Toups) INFORMATION

This report provides an overview of Freeway Service Patrol (FSP) program activities. The FSP is a roving patrol service that provides cost-effective congestion relief by assisting or removing disabled vehicles from designated urban freeways during rush hours. In FY 2006, the FSP will expand service to currently unpatrolled segments of State Routes (SRs) 54, 56, and 125. Light-duty pickup trucks augment the FSP tow trucks under a Pilot Project funded in part by the San Diego Service Authority for Freeway Emergencies (SAFE). FSP tow trucks also provide service in freeway construction zones to mitigate impacts caused by construction activities.

4 +9. ESCONDIDO RAPID BUS AND TRANSIT PRIORITY CONCEPT STUDY INFORMATION (Linda Culp)

SANDAG, NCTD, and the City of Escondido are working together to evaluate the most effective transit priority measures for implementation along a six-mile existing transit corridor in the City of Escondido. This corridor is currently served by relatively high ridership local bus service, which suffers from heavy congestion during the peak and is identified in MOBILITY 2030 for future rapid bus service. These measures could include signal priority to extend the green signal for late transit vehicles or queue jumper lanes at key congested intersections to give the bus a jump start ahead of the main lane traffic. SANDAG and NCTD are sharing in the cost for the initial consultant study, which is expected to conclude in November 2005.

10. UPCOMING MEETINGS INFORMATION

The next two Transportation Committee meetings are scheduled for Friday, June 17, 2005, and Friday, July 1, 2005.

11. ADJOURNMENT

+ next to an agenda item indicates an attachment

5 San Diego Association of Governments TRANSPORTATION COMMITTEE

June 3, 2005 AGENDA ITEM NO.: 1

Action Requested: APPROVE

TRANSPORTATION COMMITTEE DISCUSSION AND ACTIONS MEETING OF MAY 20, 2005

The meeting of the Transportation Committee was called to order by Chair Joe Kellejian (North County Coastal) at 9:00 a.m. See the attached attendance sheet for Transportation Committee member attendance.

1. APPROVAL OF MEETING MINUTES

Action: Upon a motion by Councilmember Jerry Rindone (South County) and a second by Councilmember Bob Emery (Metropolitan Transit System [MTS]), the Transportation Committee approved the minutes from the May 6, 2005, meeting.

2. PUBLIC COMMENTS/COMMUNICATIONS/MEMBER COMMENTS

Chair Kellejian reminded everyone that it was “Bike to Work Day.”

Chuck Lungerhausen, a member of the public, commented about recent news reports related to charging tourists to park at our beaches. He thought this idea could have unforeseen enforcement and toll collection expenses. Charging this fee would encourage tourists to use our transit system. He thought that the ever-increasing cost of gasoline should encourage residents to do the same.

CONSENT ITEMS

3. 2004 CONGESTION MANAGEMENT PROGRAM UPDATE (ACCEPT)

SANDAG is required by state law to update the Congestion Management Program (CMP) every two years. Major changes in the 2004 CMP include an updated CMP roadway network level of service analysis, a new transit corridor analysis, and a proposed change in the process to address deficient roadway segments. The Transportation Committee is asked to accept the Draft 2004 CMP update for public comment and schedule a public hearing for its June 17, 2005, meeting.

Councilmember Jack Feller (North County Transit District [NCTD]) noted that Exhibit 1 on page 9 states that Plaza Drive and Oceanside Boulevard is in Encinitas, and he didn’t think that was correct. Mario Oropeza, Senior Planner, responded that that was a mistake, and it was corrected following the agenda mailout. 4. 2004 REGIONAL TRANSPORTATION IMPROVEMENT PROGRAM (RTIP) – AMENDMENT NO. 8 (APPROVE)

At its meeting on July 23, 2004, the SANDAG Board adopted the 2004 Regional Transportation Improvement Program (RTIP), the five-year program of major transportation projects in the San Diego region covering the period from FY 2004/05 to FY 2008/09. Caltrans has requested changes to two of its projects. The Transportation Committee is asked to adopt Resolution No. 2005-25, approving Amendment No. 8 to the 2004 RTIP to incorporate Caltrans’ changes.

5. SUMMER 2005 TRANSIT SERVICE CHANGES (INFORMATION)

Changes to bus, trolley, and Coaster service are implemented three times a year: in the fall, winter, and summer. The next scheduled dates for implementing transit service changes are Sunday, June 19, 2005, and Sunday, July 10, 2005, for MTS, which includes the opening of the Mission Valley East Trolley extension and corresponding bus service changes; and Sunday, May 22, 2005, for NCTD. This report is presented to the Transportation Committee for information on the status of the transit system services.

Action: Upon a motion by Councilmember Feller and a second by Councilmember Rindone, the Transportation Committee approved Consent Items 3 through 5, including Resolution No. 2005-25.

CHAIR’S REPORT

6. TRANSNET INDEPENDENT TAXPAYER OVERSIGHT COMMITTEE (ITOC) STATUS REPORT (INFORMATION)

Craig Scott, TransNet Program Manager, reported that the ITOC committee selections have been completed and the committee held its first meeting. He introduced Mike Boyle, who was selected as the chair of the ITOC.

Mr. Boyle stated that the ITOC met on Wednesday, May 18, 2005. He named the other six members of this committee: Maryam Babaki, Hamid Bahadori, James Callaghan, Doug Gibson, John Meyer, and Jim Ryan, and provided brief information about their experience. He said that the ITOC looks forward to working with the SANDAG Board and staff on the TransNet Extension projects.

REPORTS

7. TRANSNET PLAN OF FINANCE FOR EARLY ACTION PROGRAM: INITIAL FINANCIAL STRATEGY RECOMMENDATIONS (ACTION)

Craig Scott stated that in January the Board approved a set of projects as part of the TransNet Early Action Program (EAP). Based on that action, staff has been working with Caltrans to update project costs and schedules, and to develop detailed revenue

2 assumptions and other key inputs needed for the updated Plan of Finance process. SANDAG’s Financial Advisor, Public Financial Management, Inc. (PFM), has been developing a detailed cash flow model for the Plan of Finance. This model will be used to analyze the cash flow needs of the ongoing requirements of the existing TransNet program commitments through FY 2008 and to develop financial strategies for implementing the EAP projects on the accelerated schedules desired.

Mr. Scott stated that the Request for Proposal (RFP) process for financial advisor services resulted in the selection of PFM to continue as SANDAG’s Finance Advisor. A Request for Qualifications (RFQs) process has led to the establishment of a short list of qualified firms to serve as bond counsel. An RFQ process for investment banking services has led to a short list of qualified investment banking firms in five specific categories including senior manager for long-term bonds, senior manager for variable/auction rate bonds, dealer for tax-exempt commercial paper, innovative finance transactions, and co-managers. Firms on the investment banking short list would be requested to respond to an RFP for specific services, such as the recommended expansion of the commercial paper program.

Keith Curry, Managing Director of PFM, Inc., stated that they are building a financial model as a tool to allow SANDAG to optimize a financial strategy to jump start the EAP before the TransNet Extension goes into effect in 2008. This model will also track expenditures to ensure compliance with the ballot measure. He provided a presentation that outlined the plan objectives, described major model inputs, identified TransNet Extension project categories, uses of the financial model, and constraints on the EAP. He explained the recommended Early Action Financing Strategy that would expand the commercial paper program to $335 million; add two new dealers at $100 million each and obtain Letter of Credit providers; issue short-term notes to fund project needs beyond the commercial paper, if required; target the cost of capital between 2005-2008 in the 2 -3 percent range; issue “Take Out” financing in 2008; and explore interest rate hedging strategies to lock in relative low, long-term borrowing rates.

Chair Kellejian clarified that the recommended action on this item is to approve the strategy.

Councilmember Jim Madaffer (City of San Diego) questioned an attorney’s opinion that links TransNet 1 and 2. He asked how solid this opinion is, who wrote the opinion, and how was the link determined. Mr. Curry replied that Mary Collins from the firm of Orrick Herrington and Sutcliffe (SANDAG’S bond counsel) issued the opinion. He stated that the link between the two TransNet measures means that you can issue debt secured by both the first and second tax for long-term bonds. He believed the legal opinion to be correct and excellent advice.

Councilmember Madaffer asked to see the opinion before voting on this item.

Jack Limber, General Counsel, explained that because there are several projects common to both TransNet measures, the financial elements from both can be used together for financing for these projects.

3 Councilmember Madaffer agreed that this concept makes sense. He asked if TransNet 2 funds will be redirected to pay the debt on TransNet 1 projects. Mr. Curry responded negatively and said that the total TransNet 1 debt will terminate in 2008.

In response to a question from Councilmember Madaffer, Mr. Curry explained that a couple of years ago SANDAG entered into an agreement that refunded the 2007 and 2008 series of bonds and received a fixed payment in return. We need to use commercial paper to pay off that debt.

Councilmember Madaffer asked if the model will allow us to do “what if” scenarios. He said that we are depending on federal and state money in the future for these projects. He wanted to know how we will deliver the projects we said we would, how short of money we will be to complete the projects, and how much state and federal money would be needed. Mr. Curry answered that the model will incorporate SANDAG’s most recent funding estimates, forecast market rates for the financing costs associated with any funds to be borrowed to meet project cash flow needs, look at assumptions for federal and state funding, and then determine if the finance plan is feasible. The model will be interactive and allow for the full examination of all factors. Staff will also be trained to use this model.

Councilmember Madaffer asked if the issuance of bonds is planned for low rates. Mr. Curry replied that for commercial paper, once you hire a dealer you don’t have to issue bonds immediate. A line of credit is established that can be drawn down according to actual project cash flow needs. The selection process for bond dealers can move forward as early as next week.

Gary Gallegos, Executive Director, stated that we are working with Caltrans to get the best cost estimates for the Early Action Projects, and we are hiring a consultant to fine-tune those estimates. PFM will use that information for the model.

Mayor Mickey Cafagna (North County Inland) commented that this is a very creative plan. He inquired about the option of issuing a series of smaller bonds rather than one large bond. Mr. Curry believed that the commercial paper program provided a more cost-effective option and that part of the recommendation was to look into the feasibility of hedging options to lock in today’s low interest rates.

Councilmember Feller asked about the number of bond dealers. Mr. Curry said that Lehman Brothers is the existing commercial paper dealer. We have identified six firms and they were all fierce competitors.

Supervisor Pam Slater Price (County of San Diego) clarified that TransNet 2 will not be redirected to pay for TransNet 1 debt. Mr. Curry stated that TransNet 1 debt will be retired before TransNet 2 begins and that proceeds from the commercial paper program will be used to fund the Early Action Projects in the TransNet Extension. Mr. Gallegos commented that out of the seven EAPs, three projects are in both measures: State Route (SR) 52, SR 76, and the Mid-Coast Light Rail Line. We will be using dollars from both measures for those three projects.

4 Supervisor Slater-Price stated that the public will be looking carefully at all these expenditures.

Councilmember Phil Monroe (South County) agreed that what we think we can do versus what projects cost today are different. Mr. Curry agreed and said that it’s important to be comfortable with the cost estimates included in the model. Mr. Gallegos said our first focus is the EAPs, but there are 47 major corridor projects in total in the TransNet Extension ballot measure.

Councilmember Monroe said he wanted to make sure that all of the projects are done.

Councilmember Madaffer commented that was his point as well. He felt that we may not be able to complete what we said if construction costs continue to increase. Mr. Gallegos said the key to completing the projects is to leverage state and federal dollars. In the early years, our problem may be not enough state and federal dollars to meet the 50/50 match assumption. We may have to use a larger share of TransNet monies early on and then a larger share of state and federal dollars on future dollars.

Action: Upon a motion by Mayor Cafagna and a second by Councilmember Feller, the Transportation Committee directed staff to work with the Financial Advisor on the expansion of SANDAG’s commercial paper program to $335 million, as reflected in the recommendations from PFM, including increasing the number of commercial paper dealers from one to three, obtaining the required letter-of-credit providers, and investigating hedging strategies to lock in historically low rates for upcoming long-term debt issuances.

8. DRAFT FY 2006 TRANSIT AGENCY OPERATING BUDGETS (INFORMATION)

Renee Wasmund, Director of Finance, stated that the Transportation Committee has the responsibility for approving the operating budgets of the transit agencies for funding. The Committee previously approved a set of guiding principles, assumptions, and revenue estimates and allocations which the operating entities have used to develop their operating budgets. MTS will hold its budget hearing on June 9 and NCTD on June 16. The SANDAG Board will act on its budget on June 24.

Paul Jablonski, Chief Executive Officer of MTS, gave a presentation on the MTS Budget. The MTS Board created a Board subcommittee for budget development, which met several times. Four finance committee workshops were also held. On April 28, staff presented several service revisions before the Board. A budget public hearing has been set for June 9. Mr. Jablonski reviewed the nonrecurring revenue usage between FY 2005 and FY 2006. He said that the goal is to reach a balanced, sustainable budget. He mentioned that they will receive federal Congestion Mitigation and Air Quality (CMAQ) funds for a three-year period for the Mission Valley East Light Rail Transit project. Those funds will drop off in FY 2009. He reviewed the Capital Improvement Program (CIP), the Comprehensive Operations Analysis (COA), energy prices, an energy analysis, other operational statistics, an FY 2006 budget overview, FY 2006 projected expenses, anticipated Mission Valley East operational expenses, the lack of Jobs Access Reverse Commute (JARC) and Air Pollution Control District (APCD) funding, and a summary of the operating budget five-year projections from FY 2006 to FY 2010.

5 Mayor Art Madrid (East County) asked if operating smaller buses would be a solution to some concerns. Mr. Jablonski replied that MTS has purchased some smaller-sized buses, but you have to look at service demand to determine whether that is a practical solution. The operator/labor costs account for 70 percent of operational costs. Fuel economy in the smaller vehicles is somewhat better but not significant. You have to match that fuel savings against the training and parts requirements for multiple fleets.

Councilmember Rindone commented that we have to continue to look at new technologies when looking at the standardization of vehicles and services.

Mayor Cafagna complimented Mr. Jablonski and the MTS Board for terrific improvements. He asked when the COA would be concluded. Mr. Jablonski replied that it will be completed by the end of the calendar year and in time for the FY 2007 budget process.

Mayor Cafagna asked if there have been any MTS Board or staff discussions regarding standards of minimum ridership. Mr. Jablonski stated that that subject has been discussed, and it is part of the COA process to look at performance standards. We have standards now, but we have not been as diligent as we could be at eliminating unproductive service.

Chair Cafagna asked about CMAQ funding. Mr. Jablonski explained that CMAQ monies are generally used for capital projects, but for a limited three-year time period they can be used for new services. Mr. Gallegos added that just about the time we run out of CMAQ dollars, the new TransNet dollars will kick in.

Councilmember Monroe reiterated that the goal is to create a sustainable operation. MTS has identified cuts this year but they need further study. Restructuring by the COA will be necessary. There are areas not currently being served by transit that have a need to be served.

Chair Kellejian noted that there is usually a drop in ridership following a fare increase but ridership generally bounces back during the next 12-18 months.

Councilmember Feller asked about JARC funding. Mr. Jablonski explained that Congress annually allocates about $100 million to $150 million for this program to recognize areas where jobs are being created outside the usual commute corridors. Projects have to be submitted for funding at a 50 percent match.

Diane Hessler, NCTD, provided the NCTD budget presentation. She reported that the budget objective is to develop a balanced operating budget and a viable CIP. The challenges are: operating expenses are increasing faster than revenues, some expense increases are significant and beyond NCTD control, and unfunded capital needs are sizeable and some are time-sensitive. She provided background information related to development of the draft FY 06 and FY 07 budgets. NCTD balanced its budget with expense reductions, revenue generation opportunities, service optimization, fare increases, CIP reductions, service cuts, and the use of reserves. She provided revenue and expense summaries for FY 04 through FY 07. Critical revenue assumptions include passenger fare and service levels, ridership projections, proposed fare increases, and operating grants. Critical expense assumptions are employee wages and benefits, union contracts expiring in June 2005 and June 2006, CalPERS

6 mandatory contribution rate increases, service levels and expenses, other expense assumptions related to service levels and efficiencies, professional and contracted services, purchased transportation, fuel costs, new items, and materials and supplies. She mentioned that half of the budget is for wages and benefits.

Ms. Hessler noted that the CIP was developed before the revenue estimates were available, and they are proposing modifications to the CIP to balance the operating budget. NCTD has unfunded CIP needs. She described the next steps for budget approval.

Chair Kellejian commented that at the joint Transportation Committee/NCTD Board meeting, staff recommended service cuts and Board members tried to add those changes back into the budget. He stated that service cuts are hard, but if you set criteria for continued service then you should live by those criteria.

Councilmember Rindone asked Ms. Hessler about the reliance on reserves. Ms. Hessler replied that reserves totaling approximately $2.2 million will be used in FY 06 and FY 07 to balance the budget.

Councilmember Rindone asked what percent of reserves will remain after the $2.2 million is used. Ms. Hessler responded that there would be a balance of about $10 million in reserves, or approximately 15 percent of the budget. Mr. Gallegos noted that NCTD has balanced its budget and not used reserves to fund continuing operations.

Councilmember Emery reminded Committee members that balanced budgets don’t recognize unfunded CIPs and infrastructure needs. The operational costs of Mission Valley East will not be met by fares, and we will need to fill that gap with other funds.

Supervisor Ron Roberts (County of San Diego) stated that the relationship between capital and operations changes over time.

Supervisor Roberts passed along a request by Supervisor Slater-Price that in the future agenda reports, NCTD provide budget spreadsheets in the same fashion as MTS.

Mr. Gallegos said that one of the lessons we have learned and did incorporate into the TransNet Extension was to capitalize the operations cost so that it is part of the project cost. We have also included a replacement schedule.

Mayor Madrid raised the question of exploring the possibility of merging MTS and NCTD.

Chair Kellejian noted that there are a number of differences between the two operating entities that need to be considered when discussing that concept.

Councilmember Madaffer complimented Ms. Hessler on her report. He also commended NCTD for a job well done.

Councilmember Madaffer stated that related to the question posed by Mayor Madrid, Senate Bill (SB) 1703 envisioned the flattening of the organization and a reduction in

7 bureaucracy. He asked how SANDAG looks at this suggestion. Mr. Gallegos said that the key to merging these two entities is having consensus among policy makers in the region.

Councilmember Madaffer suggested that NCTD’s efficiencies in various categories be applied in San Diego.

Councilmember Monroe said that the theory that ridership would rebound in 12-18 months following a fare increase has not occurred since the last MTS fare increase. He noted that without Petco Park, ridership would not have returned to levels prior to the last fare increase.

Councilmember Rindone agreed that this is the first time that MTS has not seen a return in ridership following a fare increase; however, other factors such as transit not serving new job centers, trying to provide operational efficiencies, and changing demographics have to be taken into account.

Mr. Stocks thanked Ms. Hessler for the presentation. He said that if the reason to consolidate the two operating entities is for efficiencies sake, NCTD is a well-run organization. The two agencies exist because there are differences, and we want to ensure representation for the two areas.

Councilmember Feller noted that the recently approved NCTD fare increase is the first one in two years, and before that the last fare increase occurred in 1998. He didn’t think NCTD would experience a ridership reduction as a result of that fare increase.

Mayor Madrid commented that TransNet was a countywide ballot measure, and SANDAG is a regional body. We need to establish a mindset to embrace the consolidation concept.

Action: This report was presented for information.

9. SOUTH BAY BUS RAPID TRANSIT PROJECT UPDATE (INFORMATION)

Jennifer Williamson, Senior Planner, presented this status report of the South Bay Bus Rapid Transit (BRT) project. She stated that we have made significant inroads in the planning of this project. It has been included in the 2030 MOBILITY Plan (Regional Transportation Plan) and is one of the highest-ranked projects in that plan. At the May 6 meeting, the Transportation Committee approved the inclusion of this project in the TransNet Early Action Projects. TransNet provides funding to begin operations of this project in 2010 between downtown San Diego and Chula Vista, and in 2015 to the Otay Mesa Border crossing. We have been fortunate to receive $900,000 in federal funding as a result of efforts by Congressman Bob Filner to support the planning of this project.

Ms. Williamson described the routing for this project, which begins in downtown San Diego, travels east on SR 94, then south along the I-805 corridor to Chula Vista. From I-805, it continues through Chula Vista into a dedicated transitway through the Otay Ranch Villages, terminating at the Eastern Urban Center. In 2015, this route would be extended to the Otay Mesa border crossing along SR 125. Interim and full implementation plans for the project are being developed on parallel time frames. Interim implementation would use freeway

8 shoulder lanes for priority until the I-805 Managed Lanes are constructed. Full implementation would occur once the I-805 Managed Lanes are complete, which Caltrans projects will occur in 2013. The Interim implementation would use interim stations to tie into the freeway shoulders; full project implementation would include direct access ramps to freeway stations. Both interim and full implementation would use the dedicated transitway in Otay Ranch. Interim implementation would have 15-minute peak/30-minute off-peak service; full implementation would provide 10-minute peak/15-minute off-peak service. Staff has been working closely with Caltrans and the California Highway Patrol (CHP) on a shoulder lane demonstration project on SR 52/I-805 for possible future application to the Interim South Bay BRT project along I-805. Use of freeway shoulders for transit priority has been successful in Minnesota for many years where over 200 miles of freeway shoulders are used by transit. We hope to begin this shoulder lane demonstration project this summer.

Ms. Williamson reviewed the three proposed freeway stations (Plaza Boulevard, Plaza Bonita, and H Street) and the potential site locations, describing the opportunities and constraints associated with each site. Plaza Bonita, in particular, has several issues related to developing a BRT station on the site, including concerns from Westfield Corporation about impacts to the Plaza Bonita Shopping Center. Mr. Gallegos stated that we have been meeting with Westfield on similar issues regarding a transit center and LRT station for the Mid-Coast project at the University Town Center shopping center.

Councilmember Madaffer commented that the shopping center has an obligation and a duty to provide public transit opportunities for both customers and employees.

Councilmember Rindone agreed with Councilmember Madaffer. He mentioned the provincial attitude of the management of the Fashion Valley Shopping Center related to the Mission Valley West line.

Leon Williams, Chair of MTS, said that if you are going to be effective you have to have some bargaining power to encourage a solution to the problem.

Ms. Williamson stated that for the Interim project, serving Plaza Bonita is likely not practical because, without a direct access ramp, the BRT routing from the freeway through the Plaza Bonita Shopping Center would increase travel time for riders by 10-12 minutes. As a result, we are working on an interim location near Sweetwater Road, which is an existing Caltrans park-and-ride.

Ms. Williamson provided information about arterial stations, including an innovating design to accommodate a BRT station along Brandywine Road proposed by the City of Chula Vista. Ms. Williamson then described the next steps in the process which include traffic studies, preliminary engineering, and environmental work.

Councilmember Rindone requested that the next time this item is on the agenda, it be set at the beginning rather than at the end of the meeting so that more Committee members will be present to hear about this project.

Action: This report was presented for information.

9

10. UPCOMING MEETINGS

Chair Kellejian announced that there will be a tour of the Mission Valley East project following the Board meeting on June 24, 2005.

The next meetings of the Transportation Committee are scheduled for June 3 and June 17, 2005.

11. ADJOURNMENT

Chair Kellejian adjourned the meeting at 11:42 a.m.

Attachment: Attendance Sheet

10 CONFIRMED ATTENDANCE SANDAG TRANSPORTATION COMMITTEE MEETING MAY 20, 2005

MEMBER/ GEOGRAPHICAL JURISDICTION NAME ATTENDING COMMENTS ALTERNATE AREA/ ORGANIZATION

North County Coastal City of Solana Beach Joe Kellejian (Chair) Member Yes

City of Encinitas Jerome Stocks Alternate Yes

North County Inland City of Poway Mickey Cafagna Member Yes

City of Vista Judy Ritter Alternate Yes

East County City of Santee Jack Dale Member No

City of La Mesa Art Madrid Alternate Yes

South County City of Chula Vista Jerry Rindone Member Yes

City of Coronado Phil Monroe Alternate Yes

City of San Diego ---- Jim Madaffer Member Yes ---- Scott Peters Alternate No

Dick Murphy Alternate No

County of San Diego ---- Ron Roberts Member Yes

---- Pam Slater-Price Alternate Yes

---- Dianne Jacob Alternate No

Metropolitan Transit City of Poway Bob Emery Member Yes Development Board MTDB Leon Williams Alternate Yes

North County Transit City of Oceanside Jack Feller Member Yes Development Board City of Vista Judy Ritter Alternate No Sat as NC Inland Alt.

City of Escondido Ed Gallo Alternate No

San Diego County City of Lemon Grove Mary Sessom Member No Regional Airport Governor’s Xema Jacobson Alternate No Authority Appointee

ADVISORY/LIAISON ---- Pedro Orso-Delgado Member Yes Arrived late Caltrans ___ Bill Figge Alternate Yes

Regional Planning ___ Sandor Shapery Member Yes Stakeholders Working Group

11 San Diego Association of Governments TRANSPORTATION COMMITTEE

June 3, 2005 AGENDA ITEM NO.: 3

Action Requested: APPROVE

2004 REGIONAL TRANSPORTATION IMPROVEMENT PROGRAM (RTIP) File Number 4000600 AMENDMENT NO. 9

Introduction

The SANDAG Board, at its meeting on July 23, 2004, adopted the 2004 Regional Transportation Improvement Program (RTIP), the five-year program of major transportation projects in the San Diego region covering the period from FY 2005 to FY 2009. In response to the voter-approved TransNet extension, the Board approved the initial TransNet Early Action Program on January 28, 2005, which included Tier 1 and Tier 2 projects focusing on freeway expansion and managed lane projects. Recognizing the multimodal characteristics of these corridor projects, the Board, at its May 27, 2005, meeting, approved the inclusion of three new transit projects into the Early Action Program (EAP).

Federal regulations require the RTIP to be fiscally constrained, that is, a region must demonstrate that sufficient revenues are available to implement the proposed projects programmed in the RTIP. This amendment incorporates the new transit projects, makes revisions to existing projects, and validates that the 2004 RTIP is fiscally constrained.

Recommendation

The Transportation Committee is asked to approve Resolution 2005-26 approving 2004 RTIP Amend- ment No. 9 (Attachment 1).

Discussion

This amendment reflects changes to existing projects and the inclusion of three new transit EAP projects. The proposed changes are described below. Table 1 provides the details for the projects being amended; Table 2 shows the total RTIP program; and Tables 2a and 2b provide the analysis demonstrating that the 2004 RTIP is fiscally constrained.

Project Amendments

Caltrans

I-5 HOV/Managed Lanes (CAL09): Transfers the construction of the auxiliary lane and interchange at Lomas Santa Fe from the City of Solana Beach (see SB01 below) to Caltrans since these tasks are an integral part of the overall I-5 HOV/ML project. Additional TransNet-MC (Major Corridors) funds are being programmed to

implement specific segments of the ML project (i.e., HOV extension to San Elijo Lagoon). Total programmed increases to $91.2 million.

I-15 Managed Lanes Middle (CAL18): Adds $11.9 million of Congestion Mitigation Air Quality (CMAQ), $23.9 million of Regional Surface Transportation Program (RSTP), and $37.3 million in TransNet-MC funds to cover cost increases associated with various aspects of this project, including purchase of the moveable barrier, noise barrier construction, and direct access ramps for future Bus Rapid Transit (BRT) services. Additionally, the implementation of the electronic toll collection and violation enforcement system (see SAN04 below) will be transferred as part of this overall project. The TransNet funds programmed for this project are provided as a loan to be repaid through the programming of a like amount of state and/or federal funds (plus interest costs) toward a TransNet-eligible project in the future. Total project increases to $419.7 million.

I-15 Managed Lanes North & South (CAL18A/B): Moves TransNet-MC funds from FY 2005 to FY 2006. Total programmed remains $92 million ($30 million for north, $62 million for south).

SR 52 E&F (CAL26): Moves TransNet-MC funds from FY 2005 FY 2006. Total programmed remains $365.6 million.

SR 52 HOV/Managed Lanes (CAL26A): Moves TransNet-MC funds from FY 2005 to FY 2006 and adds funding for both the westbound and eastbound auxiliary lanes from I-15 to Mast Boulevard. Total project programmed increases to $67.4 million of TransNet-MC funds.

SR 76 Middle (CAL29): Moves TransNet-MC funds from FY 2005 to FY 2006. Total programmed remains $25.1 million.

SR 76 East (CAL29B): Moves TransNet-MC funds from FY 2005 to FY 2006. Total programmed remains $8.4 million.

SHOPP Minor Projects (CAL45): Adds $12.3 million in state minor program in FY 2006. This program is administered by Caltrans and funded by the state. Total project increases to $12.9 million.

SHOPP Lump Sums (CAL46A/B/D/E/H): Caltrans periodically updates the State Highway Operations and Protection Program (SHOPP). There are eight SHOPP categories. This amendment revises funding to five programs. The total programmed for each category is as follows: $24.8 million for Operations/Mobility (CAL46A); $14 million for Collision Reduction (CAL46B); $51.2 million for Bridge Preservation (CAL46D); $25.8 million for Roadway Preservation (CAL46E); and $3.1 million for Transportation Enhancement (CAL46H).

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I-5/SR78 Direct Connectors (CAL71): Moves funding from FY 2005 to FY 2006 and FY 2007. Total programmed remains $1 million.

I-805 HOV/Managed Lanes (CAL78): Moves TransNet-MC funds from FY 2005 to FY 2006. Total programmed remains $26 million.

SANDAG

I-15 Managed Lanes Value Pricing (SAN04): Replaces the source of matching funds for the federal CMAQ funding in FY 2006. As noted under project CAL18 above, the actual implementation of toll collection and violation enforcement has been incorporated with the I-15 ML/HOV Middle project. Total project for this phase decreases to $2 million.

Traffic Signal Projects (SAN10): Out of the $30.1 million of CMAQ funds programmed in this lump sum, $29.2 million has already been obligated. The remaining $927,900 is being programmed for the following projects: $42,000 for signal retiming along Centre City Parkway (City of Escondido); $51,000 for signal Interconnect improvement along Navajo Road (City of San Diego); $201,000 for the Regional Arterial Management System (SANDAG); $184,500 for signal interconnect improvements along Del Mar Heights Road (City of San Diego); $26,000 for signal retiming along Fletcher Parkway/Broadway Boulevard (City of El Cajon); $264,000 for signal interconnect improvements along Jamacha Boulevard (County of San Diego); $93,400 for signal interconnect improvements along Cuyamaca Street and Trolley system (City of Santee); and $66,000 for signal interconnect improvements for the South Bay Interconnect System (City of San Diego, City of Chula Vista, and City of National City). Although there is no change to the programmed funds ($30.1 million), this amendment is to recognize the selection of the projects.

I-15 BRT (SAN26): Expands the scope to include additional stations, enhanced bus stops, direct access ramps, and restructuring of express bus services along the I-15 corridor and in the Mid-City area of San Diego. This addition is one of three early action BRT projects approved by the SANDAG Board at its meeting on May 27, 2005. Total project increases to $118.2 million.

Mid-Coast Super Loop (SAN46): This new early action transit project would provide high quality bus transit circulator service in the University City area making connections to existing local regional transit services, as well as the future Mid-Coast light rail transit. It also includes extensive transit priority treatments and customer amenities. This new project is the second of three early action BRT projects approved by the SANDAG Board at its May 27, 2005, meeting. The total programmed is $23.1 million in TransNet-MC funds.

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South Bay BRT (SAN47): This new project is the third early action BRT project that would provide services in Otay Ranch, National City, and downtown San Diego via I-805 and SR 94. The $28.9 million in TransNet-MC funds would provide for the design and construction of transit stations, transitways, and the purchase of 12 new vehicles.

Environmental Mitigation Program (EMP - SAN48): This new project is a lump sum program for environmental mitigation related to the implementation of TransNet Early Action Program, including I-5, I-15, I-805, SR 52, SR 56, SR 76, the Mid-Coast light rail, and early action BRT projects. Based on the Implementation Guidelines approved by the Board in September 2004 and the estimated timing of the implementation of the Early Action projects, the programmed amounts are based on an assumed $1 million in FY 2006 and $2 million in FY 2007 for habitat management and monitoring activities (shown as PE in Table 1), $20 million in FY 2006 and $30 million in FY 2007 for habitat acquisition with an additional $4 million in economic benefit funds in FY 2007 (shown as RW in Table 1), and $10 million for habitat restoration efforts beginning in FY 2007 (shown as CON in Table 1). Actual expenditures would be based on future actions of the Regional Planning Committee, Transportation Committee, and Board of Directors.

It is anticipated that SANDAG’s Commercial Paper program will be used to fund the EMP expenses through FY 2008. Interest costs over this time period will be funded through the TransNet Highway program with such funds being reimbursed once the EMP funding becomes available in FY 2009. Total programmed is $67 million.

County of San Diego

SANDAG notified its member agencies to identify local projects as candidates for early action (to be included with the EAP) and requested project information and funding need. To date the County of San Diego is the only agency to identify projects to be funded from borrowing from the TransNet extension. The two projects described below will be funded from the TransNet-LSI (Local System Improvements) program.

East Mission Road (CNTY25): This new project would reconstruct an existing three-lane road to four lanes with left turns and sidewalks. Total project is $1.5 million in TransNet-LSI funds.

Street Improvements (CNTY26): This new project is a lump sum for various street improvements, including road reconstruction to provide for bike lanes, construction of curbs and gutters, sidewalks, and drainage improvements. Total project is $7.1 million in TransNet-LSI funds.

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City of Solana Beach

Lomas Santa Fe/I-5 Interchange (SB01): As reported in project CAL09 above, the auxiliary lane and interchange part of this project is being transferred to Caltrans to be incorporated as part of the I-5 HOV/ML project. The City will continue work through the right-of-way phase and relinquish the construction phase to Caltrans. Total project is reduced to $3.5 million.

Fiscal Constraint Analysis

Federal regulations require the 2004 RTIP to be a revenue-constrained document with programmed projects based upon available or committed funding and/or reasonable estimates of future funding. Funding assumptions are generally based upon: (1) authorized or appropriated levels of federal and state funding from current legislation; (2) conservative projections of future federal and state funding based upon a continuation of current funding levels; (3) the most current revenue forecasts for the TransNet program; and (4) the planning and programming documents of the local transportation providers.

With the passage of the TransNet Extension, SANDAG is in the process of developing financing strategies to fund major transportation projects, including the EAP. On May 20, 2005, the SANDAG Transportation Committee approved an interim financial strategy for the TransNet EAP, including the expansion of SANDAG’s Commercial Paper program to $335 million, to be augmented by short- term notes as needed, to accommodate the cash flow needs of the EAP projects through FY 2008. In addition, available TransNet revenues will be utilized to fund the three projects carrying over from the current TransNet program to the TransNet Extension (SR 52, SR 76, and Mid-Coast projects). Longer term strategies will be included with the Plan of Finance, the biennial RTIP update, and the RTP update.

An overview of the program, available revenues by funding sources, and the various assumptions and forecasts are discussed in detail in Chapter 4 of the Final 2004 RTIP. Table 2 provides updated program summaries, Table 2a shows the total revenues available to fund the programmed projects, and Table 2b outlines the additional capacity on hand. Based on this analysis, sufficient capacity exists to implement the 2004 RTIP, including the projects in Amendment No. 9.

Air Quality Analysis

On July 23, 2004, SANDAG found the 2004 RTIP in conformance with the Regional Air Quality Strategy/ State Implementation Plan (RAQS/SIP) for the San Diego region. All of the required regionally significant capacity increasing projects were included in the quantitative emissions analysis conducted for the 2004 RTIP, as amended.

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Projects in Amendment No. 9 meet the conformity provisions of 40 CFR 93.122(g). All capacity increasing projects in Amendment No. 9 were included in previous regional emission analysis of the 2030 RTP and 2004 RTIP, as amended (SANDAG Board approval March 28, 2003, US DOT approval April 9, 2003). All other projects are either non-capacity increasing or are exempt from the requirement to determine conformity according to §93.126 of the Transportation Conformity Rule. SANDAG followed interagency consultation procedures to determine that these projects are exempt. Amendment No. 9 does not interfere with the timely implementation of TCMs. Table 3 provides an update to the TCM projects programmed in the 2004 RTIP. The 2004 RTIP, including Amendment No. 9, remains in conformance with the SIP.

RENEE WASMUND Director of Finance

Attachments: 1. Resolution 2005-26

Key Staff Contact: Sookyung Kim, (619) 699-6909, [email protected]

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Attachment 1

RESOLUTION

401 B Street, Suite 800 NO. 2005-26 San Diego, CA 92101 Phone (619) 699-1900 • Fax (619) 699-1905 www.sandag.org

APPROVING AMENDMENT NO.9 TO THE 2004 REGIONAL TRANSPORTATION IMPROVEMENT PROGRAM

WHEREAS, on July 23, 2004, SANDAG adopted the 2004 Regional Transportation Improvement Program (RTIP) and found the 2004 RTIP in conformance with the 1998 Regional Air Quality Strategy (RAQS) and the 2002 Ozone Maintenance Plan; and

WHEREAS, on March 28, 2003, SANDAG made a finding of conformity of the 2030 Regional Transportation Plan (RTP) with the State Implementation Plan (SIP) and the 1998 RAQS; and

WHEREAS, the US Department of Transportation issued its conformity finding to the 2030 RTP on April 9, 2003; and

WHEREAS, on April 22, 2005, SANDAG made a finding of conformity of the 2030 RTP and 2004 RTIP, as amended, to the 8-hour ozone standard; and

WHEREAS, on May 20, 2005, the U.S. Department of Transportation issued its conformity finding of the 2030 RTP and 2004 RTIP, as amended, to the 8-hour ozone standard; and

WHEREAS, agencies have requested project revisions for inclusion into the 2004 RTIP, as shown in Table 1; and

WHEREAS, the proposed amendment is consistent with the 2030 RTP; and

WHEREAS, the regionally significant capacity increasing projects have been incorporated into the quantitative air quality emissions analysis and