BOARD OF DIRECTORS MEETING. Thursday, August 4, :30 PM PLEASE NOTE MEETING LOCATION AGENDA

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1 BOARD OF DIRECTORS MEETING Thursday, August 4, :30 PM PLEASE NOTE MEETING LOCATION VTA Auditorium 3331 North First Street San Jose, CA AGENDA To help you better understand, follow, and participate in the meeting, the following information is provided: Persons wishing to address the Board of Directors on any item on the agenda or not on the agenda are requested to complete a blue card located at the public information table and hand it to the Board Secretary staff prior to the meeting or before the item is heard. Speakers will be called to address the Board when their agenda item(s) arise during the meeting and are asked to limit their comments to 2 minutes. The amount of time allocated to speakers may vary at the Chairperson's discretion depending on the number of speakers and length of the agenda. If presenting handout materials, please provide 25 copies to the Board Secretary for distribution to the Board of Directors. The Consent Agenda items may be voted on in one motion at the beginning of the meeting. The Board may also move regular agenda items on the consent agenda during Orders of the Day. If you wish to discuss any of these items, please request the item be removed from the Consent Agenda by notifying the Board Secretary staff or completing a blue card at the public information table prior to the meeting or prior to the Consent Agenda being heard North First Street San Jose, CA Administration Customer Service

2 AGENDA BOARD OF DIRECTORS Thursday, August 04, 2016 Disclosure of Campaign Contributions to Board Members (Government Code Section 84308) In accordance with Government Code Section 84308, no VTA Board Member shall accept, solicit, or direct a contribution of more than $250 from any party, or his or her agent, or from any participant, or his or her agent, while a proceeding involving a license, permit, or other entitlement for use is pending before the agency. Any Board Member who has received a contribution within the preceding 12 months in an amount of more than $250 from a party or from any agent or participant shall disclose that fact on the record of the proceeding and shall not make, participate in making, or in any way attempt to use his or her official position to influence the decision. A party to a proceeding before VTA shall disclose on the record of the proceeding any contribution in an amount of more than $250 made within the preceding 12 months by the party, or his or her agent, to any Board Member. No party, or his or her agent, shall make a contribution of more than $250 to any Board Member during the proceeding and for three months following the date a final decision is rendered by the agency in the proceeding. The foregoing statements are limited in their entirety by the provisions of Section and parties are urged to consult with their own legal counsel regarding the requirements of the law. All reports for items on the open meeting agenda are available for review in the Board Secretary s Office, 3331 North First Street, San Jose, California, (408) , the Monday, Tuesday, and Wednesday prior to the meeting. This information is available on our website, and also at the meeting. Any document distributed less than 72-hours prior to the meeting will also be made available to the public at the time of distribution. Copies of items provided by members of the public at the meeting will be made available following the meeting upon request. In accordance with the Americans with Disabilities Act (ADA) and Title VI of the Civil Rights Act of 1964, VTA will make reasonable arrangements to ensure meaningful access to its meetings for persons who have disabilities and for persons with limited English proficiency who need translation and interpretation services. Individuals requiring ADA accommodations should notify the Board Secretary s Office at least 48-hours prior to the meeting. Individuals requiring language assistance should notify the Board Secretary s Office at least 72-hours prior to the meeting. The Board Secretary may be contacted at ((408) or * board.secretary@vta.org or ( (408) (TTY only). VTA s home page is on the web at: or visit us on Facebook at: ((408) : 中文 / Español / 日本語 / 한국어 / tiếng Việt / Tagalog. NOTE: THE BOARD OF DIRECTORS MAY ACCEPT, REJECT OR MODIFY ANY ACTION RECOMMENDED ON THIS AGENDA North First Street, San Jose, California is served by bus line 58 and Light Rail. For trip planning information, contact our Customer Service Department at (408) between the hours of 6:00 a.m. to 7:00 p.m. Monday through Friday and 7:30 a.m. to 4:00 p.m. on Saturday. Schedule information is also available on our website, Page 2 of 7

3 1. CALL TO ORDER AND ROLL CALL AGENDA BOARD OF DIRECTORS Thursday, August 04, ROLL CALL 1.2. Orders of the Day 2. AWARDS AND COMMENDATION 2.1. INFORMATION ITEM - Recognize Susan Emery, Office & Timekeeping Technician, North Yard Operations; Lakhbir Singh, Coach Operator, Chaboya Operations; Nelson Sousa, Transit Mechanic, Chaboya Maintenance; as Employees of the Third (3 rd ) Quarter of 2016; and Shannon Arms, Transit Division Supervisor, Chaboya Operations as our Supervisor of the Third (3 rd ) Quarter of INFORMATION ITEM Recognize Sheriff's Deputies John Rizqallah, Cody Cogliandro and Andrew Galaviz for their lifesaving actions INFORMATION ITEM - Recognize VTA Community Partner - Cristo Rey Jesuit High School in San José INFORMATION ITEM - Recognize VTA Community Partner - City Year San Jose/Silicon Valley Partnership INFORMATION ITEM Recognize VTA Sustainability Team Members for their contribution to VTA s achievement of Gold Level Recognition in the American Public Transportation Association (APTA) Sustainability Commitment Program. 3. PUBLIC COMMENT This portion of the meeting is reserved for persons desiring to address the Board of Directors on any item within the Board's jurisdiction. Speakers are limited to 2 minutes. The law does not permit Board action or extended discussion of any item not on the agenda except under special circumstances. If Board action is requested, the matter can be placed on a subsequent agenda. All statements that require a response will be referred to staff for reply in writing. Page 3 of 7

4 4. PUBLIC HEARINGS AGENDA BOARD OF DIRECTORS Thursday, August 04, HEARING - NOTICE OF INTENTION TO ADOPT RESOLUTION OF NECESSITY ACTION ITEM - Close the Public Hearing and adopt a Resolution of Necessity determining that the public interest and necessity require the acquisition of property interests in property owned by National Retail Properties, L.P., a Delaware Limited Partnership, and located in San Jose, California, for the Caltrain Los Gatos Creek Bridge Replacement Project. Property ID/Assessor's Parcel Number/Owner Parcel Nos. JPB-SCL , -2 and -3 (APN and -065) are owned by National Retail Properties, L.P., a Delaware Limited Partnership. Note: Motion must be approved by at least a 2/3 of the Board (8 members). 5. COMMITTEE REPORTS 5.1. Citizens Advisory Committee (CAC) Chairperson's Report. (No Report) 5.2. Policy Advisory Committee (PAC) Chairperson's Report. (No Report) 5.3. Standing Committee Chairpersons' Report. (No Report) 5.4. Policy Advisory Board Chairpersons' Report. (No Report) 6. CONSENT AGENDA 6.1. ACTION ITEM - Approve the Board of Directors Regular Meeting Minutes of June 2, ACTION ITEM - Approve the Board of Directors Regular Meeting Minutes of June 24, ACTION ITEM - Formally append to Resolution the candidate project lists previously approved by the Santa Clara Valley (VTA) Board of Directors on June 2, 2016 as part of the adoption of the framework and funding amounts for the ½ cent 30-year sales tax measure ACTION ITEM - Ratify appointments to the Bicycle & Pedestrian Advisory Committee for the two-year term ending June 30, 2018 of: (1) Barry Chaffin, representing the City of Monte Sereno, (2) Wes Brinsfield, representing the City of Los Altos; (3) Paul Goldstein, representing the City of Palo Alto; (4) Peter Hertan, representing the Town of Los Gatos; and (5) Sarah Peters, representing the City of Santa Clara. Page 4 of 7

5 6.5. ACTION ITEM - Adopt a support position for the following bills: AGENDA BOARD OF DIRECTORS Thursday, August 04, ) AB 1889 (Mullin), which facilities the expenditure of $1.1 billion in Proposition 1A bond proceeds appropriated to the California High-Speed Rail Authority in 2012 for projects in the northern- and southern-most portions of the state's high-speed train system, including electrification of the Peninsula Corridor. 2) AB 2090 (Alejo), which allows a public transit agency to use its Low Carbon Transit Operations Program formula share to support the operation of existing service if the agency declares a fiscal emergency pursuant to the California Environmental Quality Act (CEQA). 3) SB 1128 (Glazer), which removes the sunset pertaining to a Bay Area ordinance requiring certain employers in the region to offer commute benefits to their employees ACTION ITEM - Authorize the General Manager to submit Federal Fiscal Year 2016 grant applications and execute grant agreements with the Federal Transit Administration (FTA) for Section 5307 Urbanized Area Formula, Section 5309 New Starts, Section 5337 Fixed Guideway and High Intensity Motorbus, and Section 5339 Bus and Bus Facilities funds ACTION ITEM - Program an additional $1.2 million, for a total of $4.2 million, in Vehicle Registration Fee (VRF) Countywide funds to the Intelligent Transportation System (ITS) program and approve the programming of VRF-ITS funds to projects INFORMATION ITEM - Review and receive the 2015 Sustainability Report INFORMATION ITEM - Receive the Programmed Projects Quarterly Monitoring Report for January - March INFORMATION ITEM - Review and receive the Internal Audit Program's Audit Dashboard on the status of implementation of recommendations issued by the Office of the Auditor General INFORMATION ITEM - Review and receive the scope of work for Annual Financial Audit Services for Fiscal Year INFORMATION ITEM - Review the Legislative Update Matrix. 7. REGULAR AGENDA 7.1. ACTION ITEM - Consider and adopt proposed Ordinance No , An Ordinance of the Santa Clara Valley Transportation Authority Enacting a Transactions and Use Tax, Subject to Adoption by the Electorate, Which Tax to Be Administered by the State Board of Equalization. Page 5 of 7

6 AGENDA BOARD OF DIRECTORS Thursday, August 04, ACTION ITEM - Approve an eligible list of fifteen on-call systems engineering consultants to provide professional services on projects that include, but are not limited to, the following categories: Rail Rehabilitation (Trackwork), Traction Power Substation (TPSS), Overhead Contact System (OCS), Signals, Communications, and Facility Electrical System Work; and authorize the General Manager to execute contracts to firms on this list. The list will be valid for a five-year period. The total amount of all contracts shall not exceed $10,000, ACTION ITEM - Approve the following actions: 1. Authorize the General Manager to execute a contract with Clever Devices Ltd. in an amount not to exceed $15,137,975 for the purchase, installation and implementation of a the Computer Aided Dispatching and Automatic Vehicle Location (CAD/AVL) system with an annually exercisable option for Software Maintenance and Hardware Warranty for years 4 to 10 in the amount of $480,375 per year; 2. Augment the VTA Transit Fund Capital Budget by $23,748,738. Note: Motion must be approved by at least a 2/3 of the Board (8 members) ACTION ITEM - Approve the following actions: 1. A pilot light rail season pass for Forty Niners games at Levi s Stadium, priced at $149 per season. 2. A pilot round trip light rail pass of $20 for each Forty Niners home game for sale to the general public. 3. Authorize the General Manager to execute a sponsorship agreement with the Forty Niners SC Stadium Company LLC ACTION ITEM - Review and receive the Auditor General's report on the Alum Rock Bus Rapid Transit Project Construction Delay Assessment. 8. OTHER ITEMS 8.1. General Manager Report. (Verbal Report) 8.1.A. Receive Government Affairs Update. 8.1.B. INFORMATION ITEM - Receive Silicon Valley Rapid Transit (SVRT) Program Update Chairperson's Report. (Verbal Report) 8.3. ITEMS OF CONCERN AND REFERRAL TO ADMINISTRATION Page 6 of 7

7 AGENDA BOARD OF DIRECTORS Thursday, August 04, INFORMATION ITEM - Unapproved Minutes/Summary Reports from VTA Committees, Joint Powers Boards (JPB), and Regional Commissions 8.4.A. 8.4.B. 8.4.C. 8.4.D. VTA Standing Committees VTA Advisory Committees VTA Policy Advisory Boards (PAB) Joint Powers Boards and Regional Commissions 8.5. Announcements 9. CLOSED SESSION 9.1. Recess to Closed Session A. Conference with Legal Counsel - Existing Litigation [Government Code Section (d)(1)] Name of Case: Santa Clara Valley Transportation Authority v. Kangarloo et al. (Tofan Enterprises, LLC dba Fast Bicycle) (Santa Clara County Superior Court Case No.: 1-13-CV ) B. Conference with Legal Counsel - Anticipated Litigation Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section Number of potential cases: 1 C. Conference with Legal Counsel - Anticipated Litigation Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section Number of Cases: Reconvene to Open Session 9.3. Closed Session Report 10. ADJOURN Page 7 of 7

8 2.1 Date: July 27, 2016 Current Meeting: August 4, 2016 Board Meeting: August 4, 2016 BOARD MEMORANDUM TO: THROUGH: FROM: Santa Clara Valley Transportation Authority Board of Directors General Manager, Nuria I. Fernandez Director of Business Services, Alberto Lara SUBJECT: Employees and Supervisor of the Quarter for the Third (3rd) Quarter of FOR INFORMATION ONLY BACKGROUND: Employees and Supervisor of the 3 rd Quarter: Susan Emery, Office & Timekeeping Technician at North Yard Operations, is the Administration Award Winner for the 3 rd Quarter. Since the day Susan joined VTA in 1981, she has been dependable, efficient, and unfailingly punctual. This excellent work ethic has had a great influence on the people around her by motivating them to meet and exceed the office goals. She projects a warm, cheerful attitude to all of the operators who come in with questions or concerns. Susan always displays the utmost professionalism and follow-through both with customers and fellow employees, even when faced with conflicts and difficult situations. Congratulations to Susan Emery, Administration Employee of the 3 rd Quarter. Lakhbir Singh, Coach Operator at Chaboya Operations, is the Operations Award Winner for the 3 rd Quarter. Throughout his ten (10) years here at VTA, Lakhbir has always been a hard and diligent worker. He often proves himself to be a great team player by assisting all the new operators in understanding the driving credentials of the transit system. He goes above and beyond what is expected, frequently volunteering to work on his day off. His flawless record is testament to the quality of work he always performs. He is undoubtedly a great asset to the Operations team at Chaboya. Congratulations to Lakhbir Singh, Operations Employee of the 3 rd Quarter. Nelson Sousa, Transit Mechanic at Chaboya Maintenance, is the Maintenance Award Winner for the 3 rd Quarter. This month marks his four-year anniversary working with VTA, and he has maintained a high level of professionalism and work performance from his first day. He always maintains a proactive and positive attitude, and he frequently helps his coworkers by showing them what he has learned throughout his career as a mechanic. He takes it upon himself to 3331 North First Street San Jose, CA Administration Customer Service

9 2.1 research problems outside of work hours in order to consistently meet the high standards he has set for himself. He is a great example of what a good leader is made of. Congratulations to Nelson Sousa, Maintenance Employee of the 3 rd Quarter. Shannon Arms, Transit Division Supervisor at Chaboya Operations, is the Supervisory Award Winner for the 3 rd Quarter. During her twenty year tenure as a Transit Division Supervisor, Shannon has become one of the premiere division supervisors at VTA. The leadership skills Shannon displays and her dedication to excellence are truly prodigious. These traits are reflected in her motivation to work tremendously long hours, far beyond those for which she is compensated by VTA. By demonstrating a genuine care for operators while at the same time enforcing VTA policies and procedures, Shannon is an excellent example of what a supervisor should be. Every VTA employee should aspire to be like her. Congratulations to Shannon Arms, Supervisor of the 3 rd Quarter. Prepared By: Employee Relations Memo No Page 2 of 2

10 2.3 Date: July 28, 2016 Current Meeting: August 4, 2016 Board Meeting: August 4, 2016 BOARD MEMORANDUM TO: THROUGH: FROM: SUBJECT: Santa Clara Valley Transportation Authority Board of Directors General Manager, Nuria I. Fernandez Director of Business Services, Alberto Lara Cristo Rey Recognition FOR INFORMATION ONLY BACKGROUND: VTA remains a committed community partner and actively pursues partnerships that enhance the quality of life in Santa Clara County. VTA began partnering with Cristo Rey Jesuit High School in September 2014, for the school year and renewed the partnership for the school year. Cristo Rey high school serves disadvantaged inner-city youth from the east side of San Jose, who participate in a full course load of college preparatory courses in addition to a one day per week work assignment, that funds the majority of their annual tuition. 100% of Cristo Rey graduates are accepted into college. For the second y ear, VTA currentl y has four students - three freshmen students and one sophomore high school student working one day a week in departments throughout VTA. This year, Alfredo Valencia worked in Service and Operations Planning; Jonathan Rubio worked in Human Resources - Benefits; Michelle Ruiz worked in Contracts Administration; and one student returned from last year, Maritza Flores, who worked with Community Engagement. Prepared By: Diversity and Inclusion Department Memo No North First Street San Jose, CA Administration Customer Service

11 2.4 Date: June 3, 2016 Current Meeting: August 4, 2016 Board Meeting: August 4, 2016 BOARD MEMORANDUM TO: THROUGH: FROM: SUBJECT: Santa Clara Valley Transportation Authority Board of Directors General Manager, Nuria I. Fernandez Director of Business Services, Alberto Lara City Year San Jose/Silicon Valley Partnership FOR INFORMATION ONLY BACKGROUND: VTA has a strong connection to the community we serve and remains committed to establishing community partnerships with various organizations within Santa Clara County. City Year San Jose/Silicon Valley is an education-focused organization founded in 1988 dedicated to helping students in high-poverty communities graduate. City Year works to bridge the gap in high-poverty communities between the support the students in the communities actually need and what their schools are designed to provide. In doing so, they help to increase graduation rates across the country, and make an impact in the lives of the students they serve. City Year trains and deploys young adult AmeriCorp Members to perform individualized tutoring, whole-classroom support, and afterschool programs for students in high-need schools. AmeriCorp members work directly with partner schools to identify and provide support to students who may be at risk of dropping out. Currently, City Year San Jose/Silicon Valley works in close collaboration with 13 elementary, middle, and high schools in San Jose, serving approximately 7,000 students through its programs. Upon completion of their service, AmeriCorp Members will have developed invaluable life skills, will have given back to the community, and will be given financial assistance with their own college education. VTA has been a longtime supporter of City Year San Jose/Silicon Valley by providing AmeriCorps members with monthly VTA passes. In exchange for passes, City Year Corp members act as ambassadors while using VTA by reporting issues of concern to VTA. City Year also adopts a number of stops near the schools they serve, volunteer as ambassadors for a number of VTA events throughout the school year, and teach their students about VTA. VTA is proud to continue our long standing partnership with City Year San Jose/Silicon Valley in support of their incredible mission to increase graduation rates for students in high-poverty 3331 North First Street San Jose, CA Administration Customer Service

12 2.4 communities. VTA would like to recognize City Year San Jose/Silicon Valley for being a valued community partner. Prepared By: Patrick Griffin, Customer Experience Manager-Customer Service Memo No Page 2 of 2

13 4.1 Date: July 27, 2016 Current Meeting: August 4, 2016 Board Meeting: August 4, 2016 BOARD MEMORANDUM TO: THROUGH: FROM: SUBJECT: Santa Clara Valley Transportation Authority Board of Directors General Manager, Nuria I. Fernandez Chief Financial Officer, Raj Srinath Resolution of Necessity Policy-Related Action: No Resolution Government Code Section Applies: No ACTION ITEM RECOMMENDATION: Adopt a Resolution of Necessity determining that the public interest and necessity require the acquisition of several temporary property interests in one property for the Caltrain Los Gatos Creek Bridge Replacement Project. BACKGROUND: The Los Gatos Creek Bridge Replacement Project is proposed by the Peninsula Corridor Joint Powers Board (the JPB or Caltrain ) to replace the two-track railroad bridge that crosses Los Gatos Creek in San Jose. The JPB uses this bridge daily in its operations. The Los Gatos Creek Bridge, located south of San Jose Diridon Station and north of Auzerais Avenue has reached and exceeded the 75-year useful life for which it was designed. The project will remove the Los Gatos Creek Bridge, including abutments, and replace it with a two new railroad bridges in the existing footprint and build a tail track bridge to the west of the existing bridge as a shoofly to allow for single tracking during the demolition and construction of MT1 and MT2. Engineering on the Los Gatos Bridge Replacement Project has been completed and major utility relocations have begun. Partial property acquisitions are required from approximately three property owners in order to construct the Los Gatos Creek Bridge Project. These acquisitions are being pursued in accordance with state and federal law, and diligent efforts are being made to acquire them through negotiated settlements. However, negotiated settlements may not be 3331 North First Street San Jose, CA Administration Customer Service

14 4.1 achievable in all instances and some of the acquisitions may need to be acquired through a timely condemnation process, particularly to ensure that the project can stay on schedule. VTA is a member of the joint powers authority. The JPB does not have the power of eminent domain in Santa Clara County. Therefore, the JPB has requested VTA, as a member of the joint powers authority, to perform that function under VTA s statutory authority. A prerequisite to commencement of eminent domain proceedings by a public entity is adoption of a Resolution of Necessity (California Code Civil Procedure section ). As discussed below, staff is recommending the Board to adopt one (1) Resolution of Necessity to enable commencement of eminent domain proceedings. DISCUSSION: Among the three property acquisitions required for the Project, staff is recommending that a Resolution of Necessity be adopted for the following property: National Retail Properties, LP This property is located at the northwest corner of Auzerias Avenue and Royal Avenue in the City of San Jose. The larger parcel consists of approximately 5.61 acres with approximately 86,000 square feet of retail building area. The proposed acquisition consists of: (1) a 6,426 sq. ft. (JPB-SCL ) Temporary Construction Easement for staging, storage and work space necessary for the project; and (2) a 19,613 sq. ft. Temporary Access Easement (JPB-SCL and -3) to provide nonexclusive access for JPB staff and it s contractors to reach the project area. The Temporary Access Easement, as proposed, clips a corner of one of the buildings. The acquisition was proposed when JPB was informed by the property owner that there is an intent by the property owner to demolish the building. After the offer was made, JPB learned that the property owner no longer has plans to demolish the building. JPB has no plans to acquire and demolish that corner of the building if the owner does not do so. The subject property was appraised and reviewed by a review appraiser, and JPB and VTA staff set just compensation. An offer based on the recommended appraisal was made on or about June 8, To date, negotiations with the owner to acquire the property have been unsuccessful even though JPB Real Estate has diligently worked to acquire the property through negotiated settlement with the property owner. JPB Real Estate will continue to work with the property owner to reach a negotiated settlement even after adoption of a Resolution of Necessity. VTA must take action to acquire the above-referenced property through eminent domain proceedings in order to ensure that construction can timely begin and the construction schedule remains intact. Page 2 of 3

15 4.1 As noted above, a prerequisite to commencement of eminent domain proceedings by a public entity is the adoption of a Resolution of Necessity. This statutory requirement is designed to ensure that public entities verify and confirm the validity of their intended use of the power of eminent domain. A resolution of necessity must contain a general statement of the public use for which the property is taken, a reference to the authorizing statutes, a description of the property, and a declaration stating that each of the following has been found and determined to be true: 1. The public interest and necessity require the proposed project; 2. The proposed project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury; 3. The property described in the resolution is necessary for the proposed project; and 4. The offer required by Section of the Government Code, together with the accompanying statement of the amount established as just compensation, has been made to the owner or owners of record, which offer and statement were in a format and contained the information required by Government Code Section , or the offer has not been made because the owner cannot be located with reasonable diligence. Further information addressing each of these items and any additional findings that must be made are included in the staff report attached hereto. The staff report also contains specific information on the property being impacted. ALTERNATIVES: The property that is subject to the Resolution of Necessity before the Board is necessary for the Project and a condemnation action must be initiated in order to obtain possession of this parcel if the Project schedule is to be maintained. The Board may, in its discretion, decide not to adopt the Resolution of Necessity. However, this would necessitate either some delay and/or a possible redesign, which could impact the schedule and, most likely, increase the costs of the Project. FISCAL IMPACT: The costs associated with acquisition of this property are being paid by the JPB. Prepared by: Kevin Balak Memo No Page 3 of 3

16 Caltrain Los Gatos Creek Bridge Replacement Project Property Acquisition Staff Report INTRODUCTION This staff report is submitted for review by the Board of Directors prior to the recommended adoption of a resolution of necessity for the acquisition of property for the Caltrain Los Gatos Creek Bridge Replacement Project. For each property interest to be acquired, a resolution of necessity must be adopted prior to the commencement of eminent domain proceedings (Code of Civil Procedure Section ). The statutory requirement that a public entity adopt a resolution of necessity before initiating a condemnation action is designed to ensure that public entities will verify and confirm the validity of their intended use of the power of eminent domain prior to the application of that power in any one particular instance. San Bernardino County Flood Control Dist. v. Grabowski (1988) 205 Cal.App.3d 885, 897. Thus, a resolution of necessity must contain a general statement of the public use for which the property is to be taken, a reference to the statute authorizing the exercise of eminent domain, a description of the property, and a declaration stating that each of the following have been found and determined by the Board to be the case: (1) The public interest and necessity require the proposed project; (2) The proposed project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury; (3) The property described in the resolution is necessary for the proposed project; and, (4) That either the offer required by Section of the Government Code has been made to the owner or owners of record, or the offer has not been made because the owner cannot be located with reasonable diligence. (Code of Civil Procedure Section ) Further, insofar as any of the property to be acquired has heretofore been dedicated to public use, the resolution of necessity will find that the acquisition of such property by VTA for the Project is for a more necessary public use to which the property has already been appropriated or is a compatible public use pursuant to Code of Civil Procedure Sections and This report provides data and information addressing each of these items. Section 1 generally describes the public use for which the property is to be taken and sets forth the statutory authority for VTA s exercise of eminent domain. Sections 3, 4, and 5 provide facts pertinent to public interest and necessity (Finding #1) and the planning and location of the Caltrain Los Gatos Creek Bridge Replacement Project (Finding #2). Section 6 also contains a property data sheet and other material discussing the necessity for acquiring the specific property interests that

17 are the subject of the resolutions of necessity (Finding #3). Section 2 provides information concerning the offers made to the property owners pursuant to Government Code Section (Finding #4). This evidentiary factual record will assist the Board in determining whether the requirements of Section have been met, and whether the other findings specified above, as applicable, can be made. If the Board determines that all requirements have been met, and that all findings can be made, it is recommended that the Board adopt resolutions of necessity for each of the parcels listed on the Board Meeting Agenda. The resolutions of necessity scheduled to be heard by the Board are attached to this staff report. SECTION 1 GENERAL STATEMENT OF PUBLIC USE Each of the parcels of property that are the subject of the recommended resolutions of necessity are to be acquired for the construction of the Caltrain Los Gatos Creek Bridge Replacement Project. STATUTORY AUTHORIZATION FOR EXERCISE OF EMINENT DOMAIN Under its enabling legislation, VTA is authorized to acquire property for mass transit purposes by eminent domain. Public Utilities Code Section , which sets forth the general powers of VTA, provides in pertinent part that: The district may take by grant, purchase, devise, or lease, or condemn in proceedings under eminent domain, or otherwise acquire, and hold and enjoy, real and personal property of every kind within or without the district necessary to the full or convenient exercise of its powers. One of the main functions of VTA is to provide transit service. (Public Utilities Code Sections , ) Public Utilities Code Section provides further authority for the taking of property by VTA through eminent domain. It states in pertinent part that: The district may exercise the right of eminent domain to take any property necessary or convenient to the exercise of the powers granted in this part. In addition, the Eminent Domain Law, Code of Civil Procedure Sections et seq., gives entities authorized by statute the right to use eminent domain to acquire property for public use, and specifies the procedures for the exercise of that right. SECTION 2 GOVERNMENT CODE OFFERS

18 The owners of the properties that are the subject of the resolutions were made an offer by VTA for the purchase of the properties unless they could not be located with reasonable diligence as required by Government Code Section Sections (a), (b) and (c) state that: (a) (1) Prior to adopting a resolution of necessity pursuant to Section of the Code of Civil Procedure and initiating negotiations for the acquisition of real property, the public entity shall establish an amount that it believes to be just compensation therefor, and shall made an offer to the owner or owners of record to acquire the property for the full amount so established, unless the owner cannot be located with reasonable diligence. The offer may be conditioned upon the legislative body s ratification of the offer by execution of a contract of acquisition or adoption of a resolution of necessity or both. The amount shall not be less than the public entity s approved appraisal of the fair market value of the property. Any increase or decrease in the fair market value of real property to be acquired prior to the date of valuation caused by the public improvement for which the property is acquired, or by the likelihood that the property would be acquired for the improvement, other than that due to physical deterioration within the reasonable control of the owner or occupant, shall be disregarded in determining the compensation for the real property. (2) At the time of making the offer described in paragraph (1), the public entity shall provide the property owner with an informational pamphlet detailing the process of eminent domain and the property owner s rights under the Eminent Domain Law. (b) The public entity shall provide the owner of real property to be acquired with a written statement of, and summary of the basis for, the amount it established as just compensation. The written statement summary shall contain detail sufficient to indicate clearly the basis for the offer, including, but not limited to, all of the following information: (1) The date of valuation, highest and best use, and applicable zoning of property. (2) The principal transactions, reproduction or replacement cost analysis, or capitalization analysis, supporting the determination of value. (3) If appropriate, the just compensation for the real property acquired and for damages to remaining real property shall be

19 separately stated and shall include the calculations and narrative explanation supporting the compensation, including any offsetting benefits. (c) Where the property involved is owner-occupied residential property and contains no more than four residential units, the homeowner shall, upon request, be allowed to review a copy of the appraisal upon which the offer is based. The public entity may, but is not required to, satisfy the written statement, summary, and review requirements of this section by providing the owner a copy of the appraisal on which the offer is based. Each property owner was presented with a written offer in an amount not less than the approved appraisal for the property, and a statement and summary of the basis of the offer, comprised of an Appraisal Summary Statement. The Appraisal Summary Statement provided the following information: name of owner; property address; parcel and APN number; locale; applicable zoning; date of valuation, present use; highest and best use; total property area; area to be acquired; type of interest to be acquired; improvements and access impacted; damages incurred and, as appropriate, separately stated with calculations and narrative explanation; total payment; and a description of the market value, reproduction or replacement cost analysis, or capitalization analysis, used to determine just compensation; and a summary of comparable sales, including the location, date of sale and sales price of properties used in the appraisal process. The date that the offer was made to each of the property owner is specified on the Property Fact Sheets contained in Section 6 of this report. SECTION 3 LOS GATOS CREEK BRIDGE REPLACEMENT PROJECT OVERVIEW, PURPOSE AND NEED Project Overview The Los Gatos Creek Bridge Replacement Project is proposed by JPB to replace the two-track railroad bridge that crosses Los Gatos Creek, in the City of San Jose, Santa Clara County, California. The existing bridge will be replaced with a new three-track bridge to accommodate a tail track on the west side of the existing tracks. The tail track will be approximately 1,800 feet in length from the southern end of San Jose Diridon Station to just north of the Interstate 280 (I- 280). The urgent need to replace the bridge with a new structure is driven by the necessity of maintaining safe and reliable operations for all users of the bridge and by operational needs in the Diridon Station Area. The existing bridge was built in 1935 and the timber trestle approach spans on the southern end of the bridge have been damaged by fire. As a result, the bridge does

20 not meet current design standards and is vulnerable to collapse in the event of a significant earthquake. The Los Gatos Creek Bridge is located 1,000 feet south of the San Jose Diridon Station area. Diridon Station is served by Caltrain, the Altamont Commuter Express (ACE), the Capitol Corridor Joint Powers Authority (Capitol Corridor), Amtrak, and Union Pacific Railroad (UPRR) freight. The Diridon Station area has become a bottleneck for train operations under existing conditions and the problem will be exacerbated in the near future due to planned increases in service by the passenger and freight providers operating in the area, including the electrification of Caltrain and the planned extension of Capitol Corridor service from San Jose south to Salinas. For example, the number of trains per day in the station area is projected to increase nearly 50% by The number of trains in the near future will exceed the capacity of the current two-tracks and signaling systems, resulting in persistent delays that will be ameliorated by the operational flexibility enabled by the proposed tail track. Purpose The purpose of the proposed project is to replace the structurally deficient Los Gatos Creek Bridge and provide a tail track south of San Jose Diridon Station in order to: Ensure safe rail travel for Caltrain passengers and other users of the Los Gatos Creek railroad bridge; Improve operations at the San Jose Diridon Station and provide an efficient way for trains to change directions; and, Minimize system-wide delays by providing a temporary, emergency layover area. Without the proposed project, the replacement of the Los Gatos Creek railroad bridge would not be completed and the bridge would present an increasing safety hazard to all users. In addition, operations at nearby San Jose Diridon Station would not be improved and system-wide delays would be likely to occur. The safety and operational need for the proposed project is discussed in further detail below. Existing Safety Concerns The existing Los Gatos Creek Bridge, constructed in 1935, measures 174 feet in length and 35 feet in width. The bridge is made up of two bridge types, steel girders on concrete piers and timber trestle on wooden pile bents (piers). There are a combined nine piers and bents in the creek including the abutments. Three deck plate girder spans measure 30 feet, 43 feet, and 43 feet. Second-hand steel girders were used during the original construction of the bridge and contribute an additional risk for the structural failure of the bridge

21 The existing bridge was inspected in 2005 and 2012 as part of the on-going JPB Bridge Program and many elements were found to not meet current load requirements. Although the steel spans are in good condition, the southerly timber trestle approach spans have been damaged by fire and have experienced moderate section loss. The bridge was evaluated per current industry requirements for the inspected condition and was found to rate below the current and projected service loads as well as the JPB design criteria for live load capacity (Cooper E80) for new bridges. The bridge was also analyzed for seismic capacity and found to be vulnerable during significant magnitude earthquakes. Figure 1 shows two photographs from the most recent bridge inspection in The photographs highlight the deteriorating conditions of the bridge from the charring and rotting of the south bridge cap. The bridge has reached and exceeded the 75-year useful life for which it was designed. Due to its increasing age, the compromised condition of the southerly trestle approach spans, failure of some bridge elements to meet current and projected service loads, and vulnerability in the event of a significant earthquake, the Los Gatos Creek Bridge needs to be replaced with a new structure. Figure 1: Deteriorating Conditions of Los Gatos Creek Bridge Current and Future Operational Needs The Los Gatos Creek Bridge is located 1,000 feet south of the San Jose Diridon Station area. Diridon Station is served by Caltrain, the Altamont Commuter Express (ACE), the Capitol Corridor Joint Powers Authority (Capitol Corridor), Amtrak, and Union Pacific Railroad (UPRR) freight. Diridon Station is a terminal station for ACE, Capitol Corridor, and a portion of Caltrain service, which means additional train movements are required to turn around trains and access the layover yard at Tamien Station south of the Los Gatos Creek Bridge. The San Jose Diridon Station area has become a bottleneck for train operations under existing conditions and the problem will be exacerbated in the near future due to planned increases in service by the passenger and freight providers operating in the area, including the electrification of

22 Caltrain and the planned extension of Capitol Corridor service from San Jose south to Salinas. 1 For example, the number of trains per day in station area is projected to increase nearly 50 percent from 124 in 2012 to 182 in The number of trains in the near future will exceed the capacity of the current two-track and signaling systems, resulting in persistent delays that will impact service reliability and quality. The existing and projected number of trains per weekday in the San Jose Diridon Station area is shown in Table 1 and supports the need for an additional track in this area. Caltrain service will increase from 92 to 114 trains per day with the electrification program. Substantial increases in service in the next 10 years are also planned by ACE and Capitol Corridor, and UPRR freight is also projected to increase. Total trains per day in the San Jose Diridon Station area will increase nearly 50 percent by All of the operators in the San Jose Diridon Station area need to move trains south of the station and across the Los Gatos Creek Bridge. While ACE and Capitol Corridor terminate passenger service at Diridon Station, some of these trains cross the Los Gatos Creek Bridge to utilize the layover yard to the south at Tamien Station. A tail track south of San Jose Diridon Station will eliminate the need for trains to travel from Diridon to Tamien just to turn around. Table 1 Trains per Weekday through the San Jose Diridon Station Area Service Provider Caltrain, San Francisco - San Jose ACE Capitol Corridor Amtrak Subtotal-Passenger UPRR Freight Total Because freight service has priority on MT1, Caltrain has only limited access to MT1. This leaves MT2 only fully available to passenger service south of San Jose Diridon Station. Conflicting movements that restrict access to MT1 for passenger service have resulted in train delays, including late arrivals to Tamien and Gilroy Stations. Under current conditions it has become increasingly difficult to provide reliable service with only one track fully available for passenger service. An operations analysis was conducted to identify future operational conflicts in the San Jose Diridon Station Area. An operational conflict means there are more trains on the same section of track at the same 1 The Capitol Corridor Salinas Rail Extension is currently undergoing environmental review and is expected to be in operation by

23 time than can safely be permitted. For safety (e.g. the avoidance of collisions), trains are not allowed to operate on the same section of track at the same time. The implication of an unresolved operational conflict is that trains will be substantially delayed at a signal waiting for the train on the track ahead of them to clear or will have to be canceled entirely due to lack of capacity. The train delays and cancellations that will occur due to unresolved conflicts will adversely affect system ridership and the quality of transit service provided to users. The operations analysis identified conflicts based on the following technical criteria: - Less than five minutes separation between two trains traveling in the same direction on one track; - More trains at a station than there are tracks to accommodate them; or, - Multiple trains needing to utilize the interlocking simultaneously in the Control Point (CP) 2 Shark to CP Alameda section of track (north of Diridon Station). The operations analysis first attempted to eliminate conflicts through minor dispatch and schedule changes (five minutes or less). The remaining conflicts could not be eliminated through minor schedule changes and require capital improvements (e.g. the tail track). By 2023, there would be 12 conflicts per day in the Diridon Station area without the tail track. In other words, 12 times per day trains would be operating with less than five minute separation or on the same track at the same time, which is not possible under the signaling and train control systems in place to prevent collisions. For safety (e.g. to avoid collisions), trains will have to be significantly delayed or canceled entirely to avoid each conflict. These unresolved conflicts under normal operating conditions will result in chronic train delays and/or necessitate service reductions that will impact the communities JPB serves in that area and the quality of service provided to rail passengers. The operational problems in the Diridon area under normal conditions are exacerbated if there is a delay or emergency elsewhere in the system. If there is a delay in one of the rail services, or if a train breaks down, the lack of any siding along this alignment creates a delay along the entire route. Therefore, the tail track in the Los Gatos Creek Bridge Replacement Project area will also be able to serve as a temporary, emergency layover area for passenger trains. SECTION 4 PROJECT PLANNING AND IMPLEMENTATION Project Planning 2 A control point is a location on the Caltrain Corridor with wayside signals that can be controlled by a train dispatcher, allowing trains to be held at that point as required. Almost all Control Points on the Caltrain Corridor are associated with interlockings, a collection of signals and track switches where trains can be routed from track to track as needed to maintain fluid railroad operations

24 The JPB initiated the planning of this project in 2006 after performing an assessment of the structural condition of the Los Gatos Creek Bridge. The replacement of this bridge has followed a number of processes including, engineering inspections, conceptual and preliminary design, environmental review and environmental clearances, significant coordination with resource agencies and extensive public outreach. As a result of extensive planning efforts and collaborative design process, a revised design was developed that was approved of and supported by the resource agencies. The revised design involves a longer bridge span that widens the existing channel by approximately 40 feet compared to existing conditions, meaning that it provides a net environmental benefit and increased riparian habitat area. The bridge design was optimized through hydraulic modeling. In addition, pre-cast structural components were proposed, resulting in a one year construction schedule. Impact pile driving was eliminated by proposing Cast-In-Drilled Hole (CIDH) piles, substantially reducing noise and vibration issues. Project Funding The total Los Gatos Creek Bridge Replacement Project cost is estimated at approximately $17.7 million based on the most current engineering cost estimates for project construction. Funding for the Los Gatos Creek Bridge Replacement Project comes through mostly federal grants with some local matching. Engineering design The engineering and design of Los Gatos Creek Bridge Replacement Project is developed in various phases of project development in conjunction with the environmental process. Engineering phases include Conceptual Engineering (10% design), Preliminary Engineering (35% design), 65% design, and Final Engineering (100% design). These design phases represent a progression of engineering throughout project development. Conceptual Engineering and Preliminary Engineering phases occur during the development of draft and final environmental documents. The 65% design phase allows for a further refinement to project definition and the design of the facilities and systems. In May 2013, the technical PE phase was completed. The 65% engineering and Final design were completed in May 2015 and May 2016 respectively. SECTION 5 ENVIRONMENTAL REVIEW PROCESSES AND ENVIRONMENTAL CLEARANCES

25 The Los Gatos Creek Bridge Replacement project will receive State and Federal funds therefore required the implementation of the state (CEQA) and Federal (NEPA) environmental review processes. All previous environmental clearances are incorporated by reference. CEQA Review Process and Clearance A series of environmental technical reports were prepared addressing biological resources, water resources, noise and vibration, air quality and traffic. The technical reports were used to prepare an Initial Study/Mitigated Negative Declaration. The Draft Initial Study/Mitigated Negative Declaration (IS/MND) for the project was circulated for a 46-day public-review period. A Notice of Availability (NOA) and Notice of Intent to Adopt a Mitigated Negative Declaration (NOI) was sent to the State Clearinghouse and the Santa Clara County Clerk, and was published in two newspapers, the San Jose Mercury (in English) and El Observador (in Spanish). On September 17, 2013, the JPB held a public information meeting in San Jose. The meeting was appropriately noticed, including post card mailings to residents within ¼ mile of the project. A follow-up public information meeting was held on October 8, 2013 and a meeting with the adjacent townhomes homeowners association occurred on November 20, Public and agency comments on the Draft IS/MND included concerns with respect to natural resource impacts from the wider replacement bridge, noise/vibration impacts from pile driving, and consistency with the plans for Los Gatos Creek trail extension. To address public and agency comments on the Draft IS/MND, a Revised Draft IS/MND was prepared and circulated for review from December 3, 2013 through December 23, The second NOA-NOI for the Revised Draft IS/MND was sent to the State Clearinghouse and the Santa Clara County Clerk, and electronic copies of the IS/MND were made available to all commenters on the initial Draft IS/MND. A Final MND containing detailed responses to all public and agency comments was prepared in January 2014 and adopted by the JPB Board of Directors on February 6, This process secured the CEQA environmental clearance. NEPA Process and Clearance Consultation under Section 7 of the Endangered Species Act, required by NEPA, was initiated during the CEQA review and continued throughout 2014, including a site visit with representatives of FTA, JPB and resource agency representatives on January 23, Numerous meetings and conference calls with the resource agencies were held throughout the redesign process in 2014 to provide opportunities for agency input into the revised design and associated habitat restoration measures. The resource agencies involved in this process included the National Marine Fisheries Service (NMFS), the U.S. Fish and Wildlife Service (USFWS) and the San Francisco Regional Water Quality Control Board (SFWQCB)

26 The revised design was used as the basis for a Section 7 Biological Assessment submitted by FTA to NMFS and USFWS in December Among the mitigation measures discussed in the Biological Assessment is JPB s participation in the Santa Clara Valley Habitat Conservation Plan. The NMFS and USFWS Biological Opinions were approved on April 29, 2015 and May 26, 2015, respectively. Parallel with the natural resource agencies coordination, JPB has participated in ongoing workgroup meetings with the City of San Jose regarding coordination with the Los Gatos Creek Trail extension/undercrossing to ensure the trail is not precluded by the bridge replacement. The Federal Transit Administration provided a letter of concurrence on July 13, 2015 where the FTA concluded that the project was environmentally cleared under the NEPA Categorical Exclusion 23 CFR part (d) (2): bridge replacement of the construction of grade separation to replace existing at-grade rail crossings. SECTION 6 SPECIFIC PROPERTY ACQUISITIONS A detailed property fact sheet and aerial photographs of the parcels required for this Project, and subject to the Resolution of Necessity follows. Overall property requirements and project related costs have been minimized as much as possible. An offer, which included the Required Project Property was made to the owner of the property, National Retail Properties, LP, a Delaware Limited Partnership, on or about June 8, The offer package is incorporated herein by reference. A Notice of Intention to Adopt Resolution of Necessity, which is incorporated herein by reference, was sent to the owners of the property via first class and overnight mail on July 18,

27 LOS GATOS CREEK BRIDGE REPLACEMENT PROJECT PROPERTY FACT SHEET JPB-SCL-0023 Owner: Property Address: Locale: Present Use: Total Property Area: Areas to be Acquired: National Retail Properties, L.P. Northwest corner of Auzerias Avenue and Royal Avenue San Jose, CA The subject property consists of 5.61 acres of land improved with approximately 86,000 sq. ft. of retail building area acres. (1) Temporary Construction Easement (JPB-SCL ) 6,426 sq. ft. (2) Temporary Access Easement (JPB-SCL & -3) 19,613 sq. ft. Date of Offer: June 8, 2016 The subject property is currently owned by National Retail Properties, LP, and is located at the northwest corner of Auzerias Avenue and Royal Avenue in the City of San Jose. The larger parcel consists of approximately 5.61 acres and is improved with approximately 86,000 square feet of retail building area. The proposed acquisition consists of: (1) a 6,426 sq. ft. (JPB-SCL ) Temporary Construction Easement for staging, storage and work space necessary for the project and (2) a 19,613 sq. ft. Temporary Access Easement (JPB-SCL and -3) to provide non-exclusive access for JPB staff and it s contractors to reach the project area (collectively Required Project Property ), attached herein as Exhibit A. The Temporary Access Easement, as proposed, clips a corner of one of the buildings. The acquisition was proposed when JPB was informed by the property owner that there is an intent by the property owner to demolish the building. After the offer was made, JPB learned that the property owner no longer has plans to demolish the building. JPB has no plans to acquire and demolish that corner of the building if the owner does not do so. In addition, no parking spaces will be affected within the take area

28 Exhibit A

29 PROPERTY ID NUMBER Caltrain JPB-SCL , -2, -3 RESOLUTION OF NECESSITY DETERMINING THAT THE PUBLIC INTEREST AND NECESSITY REQUIRE THE ACQUISITION OF CERTAIN LAND AND DIRECTING THE FILING OF EMINENT DOMAIN PROCEEDINGS WHEREAS, the Caltrain Los Gatos Creek Bridge Replacement Project (the Project ) is being undertaken for the purpose of replacing aging infrastructure to improve the efficiency and quality of Caltrain s operations, and otherwise furthering the public health, safety and welfare; and WHEREAS, it is desirable and necessary for the Santa Clara Valley Transportation Authority ( VTA ) to acquire certain property, namely a Temporary Construction Access Easement more particularly described in Exhibit A attached hereto and made a part hereof by this reference; and a Temporary Access Easement more particularly described in Exhibit B attached hereto and made a part hereof by this reference, as right of way for the Project and the construction thereof; and WHEREAS, VTA is authorized to acquire the Property and exercise the power eminent domain pursuant to and in accordance with Article 1, Section 19 of the California Constitution, the California Eminent Domain Law, Code of Civil Procedure Section et seq., and Section and of the Public Utilities Code; and WHEREAS, pursuant to the provisions of Section of the Code of Civil Procedure of the State of California, notice has been duly given to the owner(s) of the property herein, all of whom have been given a reasonable opportunity to appear and be heard before the Board of Directors of VTA at the time and place set forth in said notice, regarding the matters specified therein. NOW, THEREFORE, IT IS FOUND, DETERMINED AND ORDERED as follows: 1. The recitals contained herein are true and correct. 2. Upon examination of the alternatives, VTA requires the Property for the Project. 3. VTA is authorized to acquire the Property and exercise the power of eminent domain pursuant to and in accordance with Article 1, Section 19 of the California Constitution, the California Eminent Domain Law, Code of Civil Procedure Sections et seq., and Sections and of the Public Utilities Code. 4. The public interest and necessity require the Project. 5. The Project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury

30 6. The Temporary Access Easement interest in property described in Exhibit A and the Temporary Construction Easement interest in property described in Exhibit B are necessary for the Project. 7. The offer required by Section (a) of the Government Code, together with the accompanying statement of the amount established as just compensation, was made to the owner or owners of record, which offer and statement were in a format and contained the information required by Government Code Section (a). 8. VTA has complied with all conditions and statutory requirements, including those prescribed by CEQA, NEPA, and that are necessary for approval and adoption of the Project. 9. All conditions and statutory requirements necessary to exercise the power of eminent domain ( the right to take ) to acquire the property described herein have been complied with by VTA. 10. Insofar as the property or the larger parcel of which it is a part has heretofore been appropriated for public use, the proposed use set forth herein will not unreasonably interfere with or impair the continuation of the public use as it exists or may reasonably be expected to exist in the future, and is therefore a compatible public use pursuant to Code of Civil Procedure Section , or, as applicable, constitutes a more necessary public use to than the use to which the property is currently appropriated pursuant to Code of Civil Procedure Section General Counsel or General Counsel s duly authorized designee is hereby authorized and directed to institute and conduct to conclusion eminent domain proceedings to acquire the property described in Exhibits A and "B" and to take such actions that counsel deems advisable or necessary in connection therewith, and may deposit the probable amount of compensation and obtain an order for prejudgment possession of the subject property. PASSED AND ADOPTED by the Santa Clara Valley Transportation Authority Board of Directors on August 4, 2016 by the following vote: AYES: NOES: ABSENT: DIRECTORS DIRECTORS DIRECTORS CINDY CHAVEZ, Chairperson Board of Directors

31 I HEREBY CERTIFY AND ATTEST that the foregoing resolution was duly and regularly introduced, passed and adopted by the vote of two-thirds or more of the Board of Directors of the Santa Clara Valley Transportation Authority, California, at a meeting of said Board of Directors on the date indicated, as set forth above. Dated: ELAINE BALTAO, Secretary Board of Directors APPROVED AS TO FORM: ROBERT FABELA Legal Counsel

32 EXHIBIT A TEMPORARY CONSTRUCTION EASEMENT JPB-SCL A Temporary Construction Easement in gross, for all general construction purposes, including, but not limited to storage, ingress and egress of persons, vehicles and equipment and other activities; in, on, over, under and across all that real property described as Parcel JPB-SCL on Exhibit 1, attached hereto and made a part hereof, to terminate and expire upon the earlier of completion of the Caltrain Los Gatos Bridge Replacement Project or May 31,

33 EXHIBIT

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37 EXHIBIT B TEMPORARY ACCESS EASEMENT JPB-SCL and -3 A non-exclusive Temporary Access Easement, for ingress and egress of persons, vehicles, equipment for all general construction purposes and other activities except storing and parking of vehicles; in, on, over, under and across all that real property described as Parcel JPB-SCL and -3 on Exhibit 2, attached hereto and made a part hereof, to terminate and expire upon the earlier of completion of the Caltrain Los Gatos Bridge Replacement Project or May 31,

38 EXHIBIT

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46 Item 4.1 Los Gatos Creek Bridge Replacement Projct Resolution of Necessity Hearing August 4,

47 Resolution of Necessity Hearing Board has full discretion as to whether or not to adopt a recommended Resolution of Necessity. Amount of compensation is NOT a consideration in this hearing. Board must make each of the findings contained in the respective Resolution of Necessity prior to their adoption. 2

48 Project Map Diridon Station Project Location Tamien Station 3 Los Gatos Creek Bridge Replacement Project

49 RON Property: National Retail Properties, L.P. Project Need: (1) 6,426 sq. ft. Temporary Construction Easement for staging, storage and work space necessary for the project (JPB-SCL-023-1) (2) 19,613 sq. ft. Temporary Access Easement to provide non-exclusive access for JPB staff and contractors to reach the project area (JPB-SCL and -3) 4

50 This image cannot currently be displayed. National Retail Properties, L.P. 5

51 6.1 BOARD OF DIRECTORS MEETING Thursday, June 2, 2016 MINUTES 1. CALL TO ORDER AND ROLL CALL The Regular Meeting of the Santa Clara Valley Transportation Authority s (VTA) Board of Directors (Board) was called to order by Chairperson Chavez at 5:39 p.m. in the Board of Supervisors Chambers, County Government Center, 70 West Hedding Street, San José, California ROLL CALL Attendee Name Title Status Jason Baker Board Member Present Jeannie Bruins Vice Chairperson Present Larry Carr Alternate Board Member Absent Magdalena Carrasco Board Member Present Cindy Chavez Chairperson Present David Cortese Alternate Board Member Absent Jose E Esteves Alternate Board Member Absent Glenn Hendricks Board Member Present Rose Herrera Board Member Present Johnny Khamis Board Member Present Sam Liccardo Board Member Present John McAlister Alternate Board Member Present Howard Miller Alternate Board Member Present Manh Nguyen Board Member Present Teresa O'Neill Board Member Present Raul Peralez Alternate Board Member Absent Perry Woodward Board Member Present Ken Yeager Board Member Present * Alternates do not serve unless participating as a Member. A quorum was present Orders of the Day Chairperson Chavez proposed the following changes to the agenda: 1) defer Agenda Item #2 Awards and Commendation, to the next Board meeting; 2) place Agenda Item #7.6 Seven Party Regional Funding Supplement to the 2012 High Speed Rail Early Investment Strategy for the Peninsula Corridor Electrification Project (PCEP), and Agenda Item #7.7 Revisions to Joint Development Policy on the Consent Agenda; and 3) the Regular Agenda will be heard in the following sequence: a) Agenda Item #7.4 Measure A Project Funding Recommendation, 3331 North First Street San Jose, CA Administration Customer Service

52 MINUTES BOARD OF DIRECTORS Thursday, June 2, 2016 and Agenda Item #7.5 Vasona Light Rail Property Acquisition will be heard together; b) Agenda Item #7.1 Update of the Silicon Valley Leadership Group's Latest Polling Results; and c) Agenda Item #7.2 Potential ½-cent 30-year Sales Tax Measure, and Agenda Item # Year ½-Cent Retail Transactions and Use Tax Ordinance (Ordinance No ) -- Introduction, will be heard together. Chairperson Chavez noted the meeting will adjourn in memory of VTA Employees Anthony Castro, Coach Operator, and Susie Story, Office Specialist II. M/S/C (Herrera/Bruins) to approve the Orders of the Day. RESULT: APPROVED [UNANIMOUS] Agenda Item #1.2 MOVER: Rose Herrera, Board Member SECONDER: Jeannie Bruins, Vice Chairperson AYES: Baker, Bruins, Carrasco, Chavez, Hendricks, Herrera, Khamis, Liccardo, Nguyen, O Neill, Woodward, Yeager NOES: None ABSENT: None AWARDS AND COMMENDATION 2.1. (Deferred to August 4, 2016, Board of Directors Regular Meeting) Recognize VTA Community Partner - City Year San Jose/Silicon Valley Partnership (Deferred to August 4, 2016, Board of Directors Regular Meeting) Recognize VTA Community Partner - Cristo Rey Jesuit High School in San Jose. 3. PUBLIC COMMENT Danny Garza, Plata Arroyo Neighborhood Association, asked that an environmental justice report be considered for projects that involve federal funds, such as bus rapid transit projects. Merrilee Zerrougui, Teamsters Local 287, asked about how the proposed rebranding of VTA s paratransit services will affect the current contracted paratransit drivers. David Hirsch, Interested Citizen, requested that bus operators wait to proceed until boarding passengers are seated. He distributed material at the dais pertaining to his request. John Rainville, Interested Citizen, advocated for more fare inspectors on light rail, particularly on weekends. Page 2 of 21

53 MINUTES BOARD OF DIRECTORS Thursday, June 2, 2016 Scott Lane, Interested Citizen, commended VTA on the Silicon Valley BART Extension Phase I Project and advocated for a collaborative effort between VTA, BART, and other agencies to create a safe and robust trail network to help alleviate congestion on roads. Larry Stone, Santa Clara County Assessor, expressed support of the proposed sales tax measure, noting positive benefit to property values with investments in roads and mass transit. 4. PUBLIC HEARINGS 4.1 SVBX Resolution of Necessity Ron Golem, Deputy Director of Real Estate, provided a presentation highlighting property interests and project needs. He noted a Letter of Objection for Property ID #B2016, and gave a brief summary of staff response and next steps. M/S/C (Woodward/Yeager) to close the Public Hearing. RESULT: APPROVED [UNANIMOUS] Agenda Item #4.1 MOVER: Perry Woodward, Board Member SECONDER: Ken Yeager, Board Member AYES: Baker, Bruins, Carrasco, Chavez, Hendricks, Herrera, Khamis, Liccardo, Nguyen, O Neill, Woodward, Yeager NOES: None ABSENT: None 6.1 M/S/C (Woodward/Yeager) to adopt Resolutions of Necessity Nos , , and determining that the public interest and necessity requires the acquisition of property interests from three properties owned by: (1) Mayfield Homeowners Association, a California nonprofit mutual benefit corporation, located in Fremont, California; and (2) Mayfield Housing Corporation, a California corporation, located in Fremont, California; and (3) Mandar Jamsandekar and Priyadarshini Jamsandekar; Srinath Gutti and Lakshmi Dontamsetti; Ravi S. Mahankali and Radhika Kuriseti; and Amit Jhawar, Trustee and Gunjan Kotriwala, Trustee of The Amit Jhawar and Gunjun Kotriwala Revocable Living Trust dated August 11, 2009, located in Fremont, California, for the BART Silicon Valley Berryessa Extension (SVBX) Project. Property ID/Assessor's Parcel Number/Owner B2016 (APN , and ) owned by Mayfield Homeowners Association, a California nonprofit mutual benefit corporation Page 3 of 21

54 6.1 MINUTES BOARD OF DIRECTORS Thursday, June 2, 2016 Property ID/Assessor's Parcel Number/Owner B3632 (APN , , and ) owned by Mayfield Housing Corporation, a California corporation Property ID/Assessor's Parcel Number/Owner B3633 (APN ) owned by Mandar Jamsandekar and Priyadarshini Jamsandekar; Srinath Gutti and Lakshmi Dontamsetti; Ravi S. Mahankali and Radhika Kuriseti; and Amit Jhawar, Trustee and Gunjan Kotriwala, Trustee of The Amit Jhawar and Gunjun Kotriwala Revocable Living Trust dated August 11, 2009 RESULT: ADOPTED [UNANIMOUS] Agenda Item #4.1 MOVER: Perry Woodward, Board Member SECONDER: Ken Yeager, Board Member AYES: Baker, Bruins, Carrasco, Chavez, Hendricks, Herrera, Khamis, Liccardo, Nguyen, O Neill, Woodward, Yeager NOES: None ABSENT: None 5. COMMITTEE REPORTS 5.1. Citizens Advisory Committee (CAC) Chairperson's Report The CAC Chairperson s report was contained in the Board Members reading folders and placed on the public table Policy Advisory Committee (PAC) Chairperson's Report The PAC Chairperson s report was contained in the Board Members reading folders and placed on the public table Standing Committee Chairpersons' Report The Standing Committee Chairpersons reports were contained in the Board Members reading folders and placed on the public table Policy Advisory Board Chairperson s Report The Policy Advisory Board Chairpersons reports were contained in the Board Members reading folders and placed on the public table. Page 4 of 21

55 6.1 MINUTES BOARD OF DIRECTORS Thursday, June 2, CONSENT AGENDA Chairperson Chavez referenced Agenda Item # Information on Community Workforce Agreements (CWA), and thanked staff for their work with community partners. She requested staff provide a draft policy for discussion and consideration at the August 4, 2016, Board meeting. Chairperson Chavez referenced Agenda Item # System Safety Update, and requested staff provide an update on the activities noted in the report at the August or September 2016 Board meeting. Board Member Liccardo recused himself from the following Agenda Items: #6.6 - Amendment with General Electric Transportation Systems Global Signaling LLC/Alstom Signaling Inc. for Light Rail Supervisory Control and Data Acquisition System Modifications #6.7 - BART Silicon Valley Program Contract with Kimley-Horn and Associates, Inc. for Planning Program Management Services #6.8 - Construction Contract Award C671 (15001F) VTA Communications Backbone Network #6.9 - Construction of the Santa Clara Caltrain Station Pedestrian Underpass Extension (C827) # Ticket Vending Machines - Authorization to use Preferred Vendor # Contract Award to OUTFRONT Media Group, LLC for Transit Advertising Services # Contract Amendment for Gillig Sole Source Parts Contract # Mathilda Avenue Improvements at State Route (SR) 237 and US 101 Contract Amendment Board Member Liccardo left his seat at 6:00 p.m. Board Member Khamis recused himself from Agenda Item # Mathilda Avenue Improvements at SR 237 and US 101 Contract Amendment. Public Comment Roland Lebrun, Interested Citizen, referenced Agenda Item #6.7 - BART Silicon Valley Program Contract with Kimley-Horn and Associates, Inc. for Planning Program Management Services, and commented on the amount/type of contract. Mr. Lebrun referenced Agenda Item #6.9 - Construction of the Santa Clara Caltrain Station Pedestrian Underpass Extension (C827), and commended VTA s contract process for the project Board of Directors Workshop Meeting Minutes of April 22, 2016 M/S/C (Herrera/Bruins) to approve the Board of Directors Workshop Meeting Minutes of April 22, Page 5 of 21

56 6.1 MINUTES BOARD OF DIRECTORS Thursday, June 2, Board of Directors Regular Meeting Minutes of May 5, 2016 M/S/C (Herrera/Bruins) to approve the Board of Directors Regular Meeting Minutes of May 5, Ratification of Appointments to the Bicycle & Pedestrian Advisory Committee M/S/C (Herrera/Bruins) to ratify appointment to the Bicycle & Pedestrian Advisory Committee for the two-year term ending June 30, 2018 of: (1) Jaime Fearer, representing the City of San José, and (2) Greg Unangst, representing the City of Mountain View Citizens Advisory Committee Appointment: North County Cities M/S/C (Herrera/Bruins) to ratify the appointment of John Melton to the Citizens Advisory Committee position representing the North County Cities Group Contract Award for Auditor General/Internal Audit Services M/S/C (Herrera/Bruins) to award a task order contract to RSM US LLP for VTA Auditor General and internal audit services. The base term of the contract is five years (through June 30, 2021) for an amount not to exceed $2,250,000 (average of $450,000 per year). In addition, the contract includes two optional one-year contract extensions at a maximum of $450,000 per year; execution of the optional one-year extensions are subject to approval by the Governance & Audit Committee Amendment with General Electric Transportation Systems Global Signaling LLC/Alstom Signaling Inc. for Light Rail Supervisory Control and Data Acquisition System Modifications M/S/C (Herrera/Bruins) to authorize the General Manager to enter into an Agreement Amendment with Alstom Signaling Inc. (formerly GE Transportation Systems Global Signaling, LLC) in an amount not to exceed $2,750,000 for Light Rail Supervisory Control & Data Acquisition modification services for a total agreement amount of $6,200,000. This Amendment will extend the agreement for a 3-year duration BART Silicon Valley Program Contract with Kimley-Horn and Associates, Inc. for Planning Program Management Services M/S/C (Herrera/Bruins) to authorize the General Manager to execute a contract with Kimley-Horn and Associates, Inc. in the amount of $17,200,000 for a three-year period ending June 2019 to provide Planning and Program Management services for VTA s BART Silicon Valley Program. Page 6 of 21

57 MINUTES BOARD OF DIRECTORS Thursday, June 2, Construction Contract Award C671 (15001F) VTA Communications Backbone Network M/S/C (Herrera/Bruins) to authorize the General Manager to execute a contract with Aldridge Electric, Inc., the lowest responsive and responsible bidder, in the amount of $4,546,400 for the construction of the VTA Communications Backbone Network; and authorize a 25% contingency allowance to address Construction of the Santa Clara Caltrain Station Pedestrian Underpass Extension (C827) M/S/C (Herrera/Bruins) to authorize the General Manager to execute a contract with Shimmick Construction Company, the lowest responsive and responsible bidder, in the amount of $4,603,029, for the construction of the Santa Clara Caltrain Station Pedestrian Underpass Extension (C827) Contract Insurance Authorization M/S/C (Herrera/Bruins) to authorize the General Manager to purchase Property and Casualty insurance coverage for General and Auto Liability, Public Officials & Employment Practice Liability, Cyber Liability, Environmental Impairment & Pollution Liability, Crime, Blanket Railroad Protective Liability, and Property Insurance renewing the annual Operations Insurance Program for an amount not to exceed $3,950, Ticket Vending Machines - Authorization to use Preferred Vendor M/S/C (Herrera/Bruins) to authorize the General Manager to execute a sole source contract with VenTek Transit, Inc. of Petaluma, California for a not-toexceed amount of $765,000 for the manufacture and delivery often (10) ticket vending machines (TVMs) consistent with VTA s existing light rail ticket vending system to serve VTA customers including persons transferring from BART to VTA at the Milpitas BART station currently under construction Tamien Development Request for Proposals M/S/C (Herrera/Bruins) to authorize the General Manager to issue a developer Request for Proposal (RFP) for joint development proposals at the Tamien station, pursuant to the rezoning application and environmental review as approved by the San Jose City Council. 6.1 Page 7 of 21

58 MINUTES BOARD OF DIRECTORS Thursday, June 2, Contract Award to OUTFRONT Media Group, LLC for Transit Advertising Services M/S/C (Herrera/Bruins) to authorize the General Manager to execute a contract with OUTFRONT Media Group, LLC to sell, display and manage the advertising program on VTA Bus and Light Rail Vehicles; on Light Rail Stations platforms and Light Rail digital signs for a five-year term beginning on July 1, 2016 and running through June 30, 2021, with an option for VTA to extend the contract for one five-year period Fiscal Year 2016 Statement of Revenues and Expenses for the Period Ending March 31, 2016 M/S/C (Herrera/Bruins) to review and accept the Fiscal Year 2016 Statement of Revenues and Expenses for the period ending March 31, Contract Amendment for Gillig Sole Source Parts Contract M/S/C (Herrera/Bruins) to authorize the General Manager to increase the existing five year bus parts contract (VTA P03) with Gillig LLC (Gillig) by $634,991 for a total of $1,765, Balance Point Contract Amendment M/S/C (Herrera/Bruins) to authorize the General Manager to extend the current contract with BalancePoint Strategic Services for three years in the amount of $750,000, for a total contract value of $2,672,505, to provide ongoing professional services in support of the Joint Workforce Investment (JWI) project. The term of the extended contract would be from July 1, 2016 through June 30, Mathilda Avenue Improvements at SR 237 and US 101 Contract Amendment M/S/C (Herrera/Bruins) to authorize the General Manager to execute a contract amendment with WMH Corporation in an amount not-to-exceed $1,244,970, increasing the not-to-exceed total contract value to $2,644,551 and extend the contract term to December 31, 2017 to complete the environmental scope of services and begin Final Design and Right -Of-Way Engineering services for Mathilda Avenue Improvements at SR 237 and US 101 project FY2016/17 TDA3 Project Priorities M/S/C (Herrera/Bruins) to (1) adopt a resolution approving the project priorities for the FY2016/17 Countywide Transportation Development Act Article 3 program; and (2) modify VTA policy regarding the banking of TDA3 funds. 6.1 Page 8 of 21

59 6.1 MINUTES BOARD OF DIRECTORS Thursday, June 2, TFCA Program Manager Fund M/S/C (Herrera/Bruins) to approve the programming of FY 2016/17 Transportation Fund for Clean Air Program Manager (TFCA 40%) funds to projects Grants Management & Compliance Assessment M/S/C (Herrera/Bruins) to review and receive the Auditor General's report on the Grants Management & Compliance Assessment Report on Follow-Up on the Procurement & Contracting Process Assessment M/S/C (Herrera/Bruins) to Review and receive the Auditor General's follow-up report on the implementation status of management's action plans contained in the Procurement & Contracting Process Assessment VTA-ATU Pension Plan Actuarial Valuation as of January 1, 2016 M/S/C (Herrera/Bruins) to receive a report on the VTA/ATU Pension Plan Actuarial Valuation as of January 1, Monthly Investment Report - March 2016 M/S/C (Herrera/Bruins) to Receive the Monthly Investment Report for March Legislative Update Matrix M/S/C (Herrera/Bruins) to review the Legislative Update Matrix Information on Community Workforce Agreements M/S/C (Herrera/Bruins) to receive information on Community Workforce Agreements (CWA) Regional Pavement Condition Summary Report M/S/C (Herrera/Bruins) to receive the 2015 Regional Pavement Condition Summary Report Development Review Quarterly Report for Jan-March 2016 M/S/C (Herrera/Bruins) to receive the Development Review Quarterly Report for January to March Transit Service Changes - July 4, 2016 M/S/C (Herrera/Bruins) to receive a report on the July 4, 2016 Transit Service Changes. Page 9 of 21

60 6.1 MINUTES BOARD OF DIRECTORS Thursday, June 2, System Safety Update M/S/C (Herrera/Bruins) to receive System Safety and Security Update Rebranding Paratransit Services M/S/C (Herrera/Bruins) to receive an update on the rebranding of VTA's Paratransit Services Program Seven-Party Regional Funding Supplement to the 2012 High Speed Rail Early Investment Strategy for the Peninsula Corridor Electrification Project (PCEP) M/S/C (Herrera/Bruins) to authorize the General Manager to execute the Seven-Party Regional Funding Supplement to the 2012 Nine-Party Memorandum of Understanding (MOU) for the Peninsula Corridor Electrification Project (PCEP). This MOU supplement provides an additional financial commitment of $20 million to address a portion of the PCEP funding gap Revisions to Joint Development Policy M/S/C (Herrera/Bruins) to approve revisions to VTA s Joint Development Policy. RESULT: MOVER: SECONDER: AYES: NOES: ABSENT: APPROVED [UNANIMOUS] Consent Agenda Items #6.1 - #6.5, #6.10, #6.12, #6.14, #6.16, # #6.30, #7.6, #7.7 Rose Herrera, Board Member Jeannie Bruins, Vice Chairperson Baker, Bruins, Carrasco, Chavez, Hendricks, Herrera, Khamis, Liccardo, Nguyen, O Neill, Woodward, Yeager None None RESULT: APPROVED Consent Agenda Items #6.6 - #6.9, #6.11, #6.13, #6.15 MOVER: Rose Herrera, Board Member SECONDER: Jeannie Bruins, Vice Chairperson AYES: Baker, Bruins, Carrasco, Chavez, Hendricks, Herrera, Khamis, Nguyen, O Neill, Woodward, Yeager NOES: None RECUSAL: Liccardo ABSENT: None Page 10 of 21

61 6.1 MINUTES BOARD OF DIRECTORS Thursday, June 2, 2016 RESULT: APPROVED Consent Agenda Item #6.17 MOVER: Rose Herrera, Board Member SECONDER: Jeannie Bruins, Vice Chairperson AYES: Baker, Bruins, Carrasco, Chavez, Hendricks, Herrera, Nguyen, O Neill, Woodward, Yeager NOES: None RECUSAL: Khamis, Liccardo ABSENT: None 7. REGULAR AGENDA Board Member Liccardo took his seat at 6:02 p.m. Agenda Items #7.4 and 7.5 were heard together. 7.4 Measure A Project Funding Recommendation 7.5 Vasona Light Rail Property Acquisition John Ristow, Director of Planning and Program Development, provided a brief overview of the report, highlighting staff recommendations. Public Comments Mark Romoser, Interested Citizen, expressed support for transit equity funding under the Transit Operations category in the proposed sales tax measure. James Wightman, Interested Citizen, made the following comments: 1) asked when the Capitol Expressway Light Rail to Eastridge and Vasona Light Rail Extension would be completed; 2) expressed concern with unsafe pedestrian crossings on light rail tracks and advocated for fences around stations; and 3) asked when the Arena Bus Rapid Transit (BRT) Station would be completed. Rob Rennie, Interested Citizen, expressed concern that the proposed appropriation for the Vasona Light Rail Extension would mostly be allocated to right-of-way acquisition, and suggested to consider a park-and-ride lot for corporate buses/private shuttles in the vicinity to ease impacts on residential streets. Members of the Board engaged in a discussion regarding the following: 1) importance of a robust transit network with efficient connections and consideration of this goal in the planning process; 2) requested staff provide a budget update on the Silicon Valley BART Extension Phase I project at the December 2016 Board meeting; 3) emphasis on the significance of the Capitol Expressway Light Rail to Eastridge project for the transit-dependent community; and 4) funding strategies and project prioritization. Page 11 of 21

62 MINUTES BOARD OF DIRECTORS Thursday, June 2, 2016 M/S/C (Carrasco/Nguyen) to establish funding commitments for the projected available 2000 Measure A revenue and augment the 2000 Measure A Transit Improvement Program Fund Capital Budget by $79,000,000 for the Capitol Expressway Light Rail to Eastridge, Vasona Light Rail Extension/Double Track, and Airport People Mover Connection to Mineta San Jose Airport projects. Further, direct staff to provide a budget update on the Silicon Valley BART Extension Phase I at the VTA Board of Directors December 8, 2016, meeting. M/S/C (Carrasco/Nguyen) to authorize the General Manager to execute all documents required for VTA s acquisition of the requisite right-of-way for the Vasona Light Rail Extension/Double Track Project ( Project ), including: purchase and sale agreements, possession and use agreements and other real estate documents related thereto. RESULT: APPROVED [UNANIMOUS] Agenda Items #7.4 and 7.5 MOVER: Magdalena Carrasco, Board Member SECONDER: Manh Nguyen, Board Member AYES: Baker, Bruins, Carrasco, Chavez, Hendricks, Herrera, Khamis, Liccardo, Nguyen, O Neill, Woodward, Yeager NOES: None ABSENT: None 6.1 Agenda Items #7.1, 7.2, and 7.3 were heard together. 7.1 Update of the Silicon Valley Leadership Group's Latest Polling Results 7.2 Potential ½-cent 30-year Sales Tax Measure Year½-Cent Retail Transactions and Use Tax Ordinance (Ordinance No ) -- Introduction Carl Guardino, President and CEO of the Silicon Valley Leadership Group (SVLG), provided a brief presentation, highlighting: 1) overview of the SVLG s latest polling results; 2) overview of the expenditure categories and key elements of the proposed sales tax measure; and 3) endorsements by elected officials and major organizations. Mr. Guardino distributed material at the dais containing updated information on current endorsements by elected officials and organizations. Scott Haywood, Transportation Planning Manager, provided a brief overview of the Envision Silicon Valley effort to date and a summary of the categories and funding amounts for the proposed measure. He highlighted candidate projects, including project recommendation from the SR 85 Corridor Policy Advisory Board (PAB) for the SR 85 Corridor category. Page 12 of 21

63 MINUTES BOARD OF DIRECTORS Thursday, June 2, 2016 Mr. Haywood introduced proposed Ordinance No , An Ordinance of the Santa Clara Valley Transportation Authority Enacting a Transactions and Use Tax, Subject to Adoption by the Electorate, Which Tax to Be Administered by the State Board of Equalization, noting recommendation for adoption of the ordinance at the August 4, 2016, VTA Board of Directors Regular Meeting. Public Comments The following Interested Citizens addressed the Board and expressed support for the proposed sales tax measure, citing importance of good roads and public transportation infrastructure to address traffic congestion issues and support economic growth and mobility in the county: Craig Robinson, Silicon Valley Bank; Stan Nakaso, Lockheed Martin Space Systems; Sam Muñoz, Carpenters Local Union 405; Dennis King, Hispanic Chamber of Commerce Silicon Valley; Wendi Baker, SummerHill Housing Group; Margaret Abe-Koga, Synopsys; Rahul Chandok, San Francisco 49ers; John Litzinger, HNTB Corporation; Raul Laborin, WSP-Parsons Brinckerhoff, American Council of Engineering Companies Santa Clara Chapter; Pat Sausedo, National Association of Industrial and Office Properties Silicon Valley Chapter, Building Industry Association Bay Area; Nancy Smith, Nvidia Corporation; Hiro Yamada, All Nippon Airways; Jason Lundgaard, Apple Inc.; Peter Leroe-Muñoz, City of Gilroy; Bill Wagner, HMH Engineers, American Council of Engineering Companies Santa Clara Chapter; Josué Garcia, Building & Construction Trades Council; Orville Thomas, California Alliance for Jobs; and Ron Gonzalez. The following Interested Citizens expressed support for increased funding allocation to transit and/or bicycle and pedestrian improvement projects, highlighting the following: 1) a need for robust solutions to reduce greenhouse gas emissions; 2) expressed support for Complete Streets requirements; and 3) expressed concern that proposed highway and expressway projects would lead to induced demand: 6.1 Interested Citizen; Erik Lindskog; Colin Heyne, Silicon Valley Bicycle Coalition (SVBC); Tessa Woodmansee; David Coale, Carbon-Free Palo Alto; Page 13 of 21

64 6.1 MINUTES BOARD OF DIRECTORS Thursday, June 2, 2016 Teresa Alvarado, SPUR; Jaime Fearer, California Walks; Scott Lane; Chris Lepe, TransForm; Andrew Boone; John Zhao, Students for Sustainable Stanford; Leila Forouhi; Janet Lafleur; and Penny Ellson. The following Interested Citizens/Transportation Justice Alliance members expressed support for the proposed $500 million allocation to the Transit Operations category and advocated for the following: 1) equitable and reliable public transportation, with emphasis on improving bus services for students, seniors, and the disabled; 2) expanding affordable fare programs for low income transit users; and 3) public oversight committee to ensure accountability and project completion: Harriet Wolf, People Acting in Community Together (PACT); Marjorie Hart, PACT; Maria Gonzalez, Mayfair Community Center; Warren Gannon, City of San Jose Senior Citizens Commission; Diana Hermone, Amalgamated Transit Union (ATU) Local 265; Ryan Kawamoto, Yu-Ai Kai; Salvador Bustamante, Latinos United for a New American (LUNA); Jonathan Lozano, LUNA; Elena Morales, LUNA; Socorro Rangel, LUNA; Alice Monteiro, LUNA; Ariana Vasquez, LUNA; Jose Galindo, LUNA; Alfonso Mendez, LUNA; Omar Vasquez, LUNA; Joseph Young, Sacred Heart United Seniors Action Committee; Rafael Preza, Sacred Heart Community Service; Diana Salazar, Sacred Heart Community Service; Soledad, Sacred Heart Community Service; Rosa, Sacred Heart Community Service; Leticia M., Renovadores Unidos por el Transportación Urbano (RUTU/Bus riders United for Transportation Revitalization); Lucy, RUTU; Charisse Ma Lebron, Working Partnerships USA; Wendy Ho, Aging Services Collaborative; Jaime Alvarado; and Eugene Bradley. Page 14 of 21

65 6.1 MINUTES BOARD OF DIRECTORS Thursday, June 2, 2016 Mr. Lebrun commented about the VTA Sprinters concept. Bob Van Cleef, Interested Citizen, expressed support for the proposed sales tax measure and recommended the Board consider adding age-friendliness as a project goal. Mr. Rennie expressed gratitude that the proposed sales tax measure is geographically balanced and noted recommendations by the SR 85 Corridor Policy Advisory Board. The following Interested Citizens expressed support for the planned Alum Rock/28 th Street station for Phase II of VTA's BART Silicon Valley Extension, noting the importance of the benefits it would bring to the surrounding communities of concern: Davide Vieira; Geoff Hatchard; and Marie Arnold, League of Women Voters. Cheriel Jensen, Interested Citizen, expressed concern about the express lane element in the SR 85 Corridor category. Adina Levin, Friends of Caltrain, expressed support for increased service and efficient connections in the rail network, improved first-and-last mile solutions, and advocated for a just balance between ridership and coverage in the bus network. Brandi Madison, Interested Citizen, expressed general support for the proposed sales tax measure and asked for clarification of the express lane element in the SR 85 Corridor category. She advocated for completion of the Capitol Expressway Light Rail to Eastridge project and offered her assistance to the Alum Rock-Santa Clara corridor business owners. Alternate Board Member Miller noted the importance of balancing jobs and housing and effective land use planning to mitigate traffic impacts. He highlighted recommendations by the SR 85 Corridor Policy Advisory Board and noted the range of projects under the proposed sales tax measure would benefit the region. Mr. Guardino expressed his appreciation to the public for their input and noted the proposed allocation plan is multimodal and links transportation systems together. He expressed support for the clause in the resolution that would require a supermajority of the Board to consider important changes. Members of the Board expressed their appreciation to the public for their meaningful engagement, to staff for their hard work, and to Mr. Guardino and the SVLG for their leadership. They noted the proposed plan is geographically balanced, support various transportation modes, and address social equity issues. Matching funds from regional, state, and federal sources could help close funding gaps, while other creative funding strategies, such as contributions from the private Page 15 of 21

66 MINUTES BOARD OF DIRECTORS Thursday, June 2, 2016 sector, should also be explored. Members of the Board noted their support for modeshift and consideration for greenhouse gas emission and vehicle miles traveled (VMT) reduction goals, and acknowledged investment on roads is also important. Members of the Board and staff engaged in a discussion, highlighting: 1) Highway Program candidate projects, including improvements in the City of Milpitas; 2) BART station in the City of Santa Clara under Phase II of VTA's BART Silicon Valley Extension, noting continuing discussions between city staff and VTA regarding any issues; 3) strong support for construction of all four planned stations under Phase II of VTA's BART Silicon Valley Extension; 4) Caltrain Capacity Improvements south of the Sunnyvale station may include grade separations; and 5) SR 85 Corridor PAB recommendation concerning express lanes, with the suggestion that the topic be brought back to the committee for further discussion. Chairperson Chavez noted there will be ongoing work related to the proposed sales tax measure, including consideration of a framework for the SR 85 corridor under the guidance of the SR 85 Corridor PAB. She noted the importance of partnerships across the business community, labor groups, local governments, and environmental and social justice advocates to achieve goals. On order of Chairperson Chavez and there being no objection, the Board received an update of the Silicon Valley Leadership Group's latest polling results. M/S/C (Liccardo/Woodward) to: 1) adopt the framework and funding amounts for a ½-cent 30-year sales tax measure; and 2) adopt Resolution No calling for a special election, to be consolidated with the statewide general election to be held on November 8, 2016, for the purpose of submitting to the voters of Santa Clara County a measure seeking authorization for VTA to enact a 30-year ½-cent retail transactions and use tax for transportation purposes. M/S/C (Liccardo/Woodward) to: (a) Introduce proposed Ordinance No , An Ordinance of the Santa Clara Valley Transportation Authority Enacting a Transactions and Use Tax, Subject to Adoption by the Electorate, Which Tax to Be Administered by the State Board of Equalization, ; (b) Consider the proposed Ordinance No ; and (c) Direct that proposed Ordinance No be placed on the agenda for the next regularly scheduled Board meeting for adoption. 6.1 RESULT: APPROVED [UNANIMOUS] Agenda Items #7.2 and 7.3 MOVER: Sam Liccardo, Board Member SECONDER: Perry Woodward, Board Member AYES: Baker, Bruins, Carrasco, Chavez, Hendricks, Herrera, Khamis, Liccardo, Nguyen, O Neill, Woodward, Yeager NOES: None ABSENT: None Page 16 of 21

67 6.1 MINUTES BOARD OF DIRECTORS Thursday, June 2, OTHER ITEMS 8.1. General Manager Report Chairperson Chavez noted the written General Manager Report was included in the Board Members reading folders and placed on the public table. 8.1.A. Government Affairs Update Chairperson Chavez noted the Government Affairs Update was included in the Board Members reading folders and placed on the public table. 8.1.B. Silicon Valley Rapid Transit (SVRT) Program Update Chairperson Chavez noted the SVRT Program Update was included in the Agenda Packet. On order of Chairperson Chavez and there being no objection, the Board received the Silicon Valley Rapid Transit (SVRT) Program Update Chairperson's Report There was no Chairperson s Report Items of Concern and Referral to Administration There were no Items of Concern and Referral to Administration Unapproved Minutes/Summary Reports from VTA Committees, Joint Powers Boards (JPB), and Regional Commissions 8.4.A. VTA Standing Committees Silicon Valley Rapid Transit (SVRT) Program Working Committee - The May 2, 2016, Minutes were accepted as contained in the Agenda Packet. Governance and Audit Committee - The May 5, 2016, Minutes were accepted as contained in the Agenda Packet. Congestion Management Program & Planning (CMPP) Committee - The May 19, 2016, Minutes were accepted as contained on the dais. Administration & Finance (A&F) Committee - There was no report. Transit Planning & Operations (TP&O) Committee - There was no report. Page 17 of 21

68 6.1 MINUTES BOARD OF DIRECTORS Thursday, June 2, B. VTA Advisory Committees Committee for Transit Accessibility (CTA) - There was no report. Citizens Advisory Committee (CAC) and 2000 Measure A Citizens Watchdog Committee (CWC) - The May 11, 2016, Minutes were accepted as contained in the Agenda Packet. Bicycle & Pedestrian Advisory Committee (BPAC) - The May 11, 2016, Minutes were accepted as contained in the Agenda Packet. Technical Advisory Committee (TAC) - There was no report. Policy Advisory Committee (PAC) - The May 12, 2016, Minutes were accepted as contained in the Agenda Packet. 8.4.C. VTA Policy Advisory Boards (PAB) State Route 85 Corridor PAB - There was no report. El Camino Real Rapid Transit PAB - The May 25, 2016, Notice of Cancellation was accepted as contained in the Agenda Packet. 8.4.D. Joint Powers Boards and Regional Commissions Caltrain Peninsula Corridor Joint Powers Board - The June 2, 2016, Summary Notes were accepted as contained on the dais. Capitol Corridor Joint Powers Authority - There was no report Dumbarton Rail Corridor Policy Committee - There was no report. Metropolitan Transportation Commission (MTC) - There was no report. Sunol Smart Carpool Lane Joint Powers Authority - There was no report. SR 152 Mobility Partnership - There was no report ANNOUNCEMENTS There were no Announcements. Page 18 of 21

69 6.1 MINUTES BOARD OF DIRECTORS Thursday, June 2, CLOSED SESSION Rob Fabela, General Counsel, announced that Closed Session Item #9.1.A. relates to request for equitable adjustment by Skanska Shimmick & Herzog (SSH). Board Members Liccardo, Yeager, and Woodward left the meeting at 8:49 p.m Recessed to Closed Session at 8:49 p.m. A. Anticipated Litigation - Conference with Legal Counsel Significant exposure to litigation pursuant to paragraph 2 of subdivision (d) of Section Number of Cases: 1 B. Existing Litigation - Conference with Legal Counsel (Subdivision (a) of Government Code Section ) Name of Case: Iyer v. Santa Clara Valley Transportation Authority (Santa Clara County Superior Court Case No.: 1-15-CV ) C. Conference with Labor Negotiators (Government Code Section ) VTA Designated Representatives Alberto Lara, Director of Business Services Ali Hudda, Deputy Director, Accounting Employee Organization American Federation of State, County and Municipal Employees, Local 101 D. Conference with Labor Negotiators (Government Code Section ) VTA Designated Representatives Alberto Lara, Director of Business Services Ali Hudda, Deputy Director, Accounting Employee Organization Transportation Authority Engineers and Architects Association (TAEA), IFPTE, Local Reconvened to Open Session at 9:35 p.m. Page 19 of 21

70 6.1 MINUTES BOARD OF DIRECTORS Thursday, June 2, Closed Session Report A. Anticipated Litigation - Conference with Legal Counsel Significant exposure to litigation pursuant to paragraph 2 of subdivision (d) of Section Number of Cases: 1 Mr. Fabela noted no reportable action was taken during Closed Session. B. Existing Litigation - Conference with Legal Counsel (Subdivision (a) of Government Code Section ) Name of Case: Iyer v. Santa Clara Valley Transportation Authority (Santa Clara County Superior Court Case No.: 1-15-CV ) Mr. Fabela noted no reportable action was taken during Closed Session. C. Conference with Labor Negotiators (Government Code Section ) VTA Designated Representatives Alberto Lara, Director of Business Services Ali Hudda, Deputy Director, Accounting Employee Organization American Federation of State, County and Municipal Employees (AFSCME), Local 101 Mr. Fabela reported Chairperson Chavez, Vice Chairperson Bruins, Board Members Baker, Carrasco, Hendricks, Herrera, Khamis, Nguyen, and O Neill heard the issues regarding AFSCME, Local 101 labor negotiations and, on a unanimous vote, approved a tentative labor agreement with AFSCME, Local 101, subject to and contingent upon the ratification of the AFSCME membership. D. Conference with Labor Negotiators (Government Code Section ) VTA Designated Representatives Alberto Lara, Director of Business Services Ali Hudda, Deputy Director, Accounting Employee Organization Transportation Authority Engineers and Architects Association (TAEA), IFPTE, Local 21 Mr. Fabela noted no reportable action was taken during Closed Session. Page 20 of 21

71 6.1 MINUTES BOARD OF DIRECTORS Thursday, June 2, ADJOURNMENT On order of Chairperson Chavez and there being no objection, the meeting was adjourned at 9:36 p.m. Respectfully submitted, Michelle Oblena, Board Assistant VTA Office of the Board Secretary Page 21 of 21

72 6.2 BOARD OF DIRECTORS MEETING Friday, June 24, 2016 MINUTES 1. CALL TO ORDER AND ROLL CALL The Regular Meeting of the Santa Clara Valley Transportation Authority s (VTA) Board of Directors (Board) was called to order by Chairperson Chavez at 9:05 a.m. in the Board of Supervisors Chambers, County Government Center, 70 West Hedding Street, San José, California ROLL CALL Attendee Name Title Status Jason Baker Board Member Present Jeannie Bruins Vice Chairperson Present Larry Carr Alternate Board Member Present Magdalena Carrasco Board Member Absent Cindy Chavez Chairperson Present David Cortese Alternate Board Member Absent Jose E. Esteves Alternate Board Member Present Glenn Hendricks Board Member Present Rose Herrera Board Member Absent Johnny Khamis Board Member Present Sam Liccardo Board Member Present John McAlister Alternate Board Member Present Howard Miller Alternate Board Member Absent Manh Nguyen Board Member Present Teresa O'Neill Board Member Present Raul Peralez Alternate Board Member Present Perry Woodward Board Member Absent Ken Yeager Board Member Present * Alternates do not serve unless participating as a Member. A quorum was present. 2. PUBLIC COMMENT The Agenda was taken out of order. Andrew Boone, Interested Citizen, expressed concern with the sales tax proposal and the amount of funding for highway expansion and the lack of funding to increase transit services. Board Member O Neill arrived at the meeting and took her seat at 9:08 a.m North First Street San Jose, CA Administration Customer Service

73 MINUTES BOARD OF DIRECTORS Friday, June 24, 2016 Nevin Sarina, Interested Citizen, provided comment on the sales tax proposal and expressed concern with environmental implications and the underserved and underrepresented populations not getting access to services to help them get around. Scott Lane, Interested Citizen, suggested the following: 1) Board take a look at issues that were raised by the the Grand Jury in 2009 to better understand what has been accomplished and what has not; 2) seek public input to find out what the issues are with transit; and 3) requested the Board discuss the issues at a future meeting. Brandi Madison, Interested Citizen, expressed concern about business owners on Santa Clara street whose businesses are suffering due to the construction of the Bus Rapid Transit and suggested VTA do more for the community Orders of the Day Chairperson Chavez noted Agenda Item 6.2, Auditor General s Report on Paratransit Operations Assessment Testing and Agenda Item 6.3, Paratransit Operations Service Plan, would be heard together. M/S/C (Liccardo/Carr) to approve the Orders of the Day. RESULT: APPROVED [UNANIMOUS] Agenda Item #1.2 MOVER: Liccardo, Board Member SECONDER: Carr, Board Member AYES: Baker, Bruins, Carr, Chavez, Hendricks, Khamis, Liccardo, Nguyen, O Neill, Yeager ABSENT: Carrasco, Herrera REGULAR AGENDA 6.1 SR 85 Policy Advisory Board Concerning Language in Resolution No Chairperson Chavez provided a brief overview of the recommended changes in the ballot languge from the State Route (SR) Corridor 85 Policy Advisory Board (PAB). Public Comment Carl Guardino, Silicon Valley Leadership Group, expressed support for the SR 85 Corridor PAB recommended changes to the language. Mr. Boone expressed concern with the language being vague and having two express lanes on Highway 85. Alternate Board Member Peralez arrived at the meeting and took his seat at 9:22 a.m. Page 2 of 11

74 MINUTES BOARD OF DIRECTORS Friday, June 24, 2016 Mr. Lane expressed concern with projects that have not been accomplished from Measure A and Measure B. He expressed concern with having more Express Lanes, noting it will invite more solo drivers and more traffic. He suggested better land management, light rail and Bus Rapid Transit projects are needed. Ms. Madison expressed concern with creating toll lanes and indicated people will not support having to pay to use them. Upon inquiry from Director Khamis, Rob Fabela, General Counsel, indicated the new language allows for flexibility for VTA to provide a combination of transit and congestion relief projects as long as there is at least one transit lane in each direction. M/S/C (Liccardo/Hendricks) to approve staff s recommendation to rescind Resolution No based upon the actions of the SR 85 Policy Advisory Board concerning language in Resolution No RESULT: MOVER: SECONDER: AYES: ABSENT: APPROVED [UNANIMOUS] Liccardo, Board Member Hendricks, Board Member Baker, Bruins, Carr, Chavez, Hendricks, Khamis, Liccardo, Nguyen, O Neill, Peralez, Yeager Carrasco M/S/C (Bruins/Liccardo) to adopt Resolution No , based upon the actions of the SR 85 Policy Advisory Board concerning language in Resolution No , and amend language describing State Route 85 Corridor to read, to fund new transit and congestion relief projects on SR 85, including a new transit lane from SR 87 in San Jose to U.S. 101 in Mountain View. Additionally this category will fund noise abatement along SR 85 and will provide funding to study transportation alternatives that include, but are not limited to, Bus Rapid Transit with infrastructure such as stations and access ramps, Light Rail Transit, and future transportation technologies that may be applicable. RESULT: MOVER: SECONDER: AYES: ABSENT: APPROVED [UNANIMOUS] Bruins, Vice Chairperson Liccardo, Board Member Baker, Bruins, Carr, Chavez, Hendricks, Khamis, Liccardo, Nguyen, O Neill, Peralez, Yeager Carrasco Page 3 of 11

75 6.2 MINUTES BOARD OF DIRECTORS Friday, June 24, CONSENT AGENDA 5.1. Appointment to the Bicycle & Pedestrian Advisory Committee M/S/C (Liccardo/Baker) to ratify appointment to the Bicycle & Pedestrian Advisory Committee for the two-year term ending June 30, 2018 of: (1) Gary Jones, representing the City of Cupertino, and (2) Mary Seehafer, representing the City of Morgan Hill. RESULT: APPROVED [Unanimous] Consent Agenda Item # 5.1 MOVER: Liccardo, Board Member SECONDER: Baker, Board Member AYES: Baker, Bruins, Carr, Chavez, Hendricks, Khamis, Liccardo, Nguyen, O Neill, Peralez, Yeager ABSENT: Carrasco 3. PUBLIC HEARINGS There were no Public Hearings. 6. REGULAR AGENDA (continued) Agenda Items 6.2 and 6.3 were heard together. Agenda Items #6.2 - # Auditor General s Report on Paratransit Operations Assessment Testing 6.3 Paratransit Operations Service Plan Pat Hagan, Office of the Auditor General, provided a brief overview and a presentation, highlighting: 1) Executive summary; 2) Observations summary Phase II; 3) Detailed observations Phase II; 4) Appendix A Rating definitions; and 5) Appendix B Detail background information. Inez Evans, Chief Operating Officer, provided a brief overview of the observations from Phase II of the audit and noted management s agreement and recommended actions in response, including terminating the contract with Outreach & Escort, Inc. (Outreach) and putting protocols and procedures in place to address issues and monitor data efficiently. Upon inquiry regarding eligibility, Ms. Evans indicated there are no proposed changes to how it will be determined. Page 4 of 11

76 6.2 MINUTES BOARD OF DIRECTORS Friday, June 24, 2016 Public Comment Tim Towers, Interested Citizen, provided comment on the complexity of the Trapeze database and noted he is proud to be an Outreach driver. Terry Applegate, Interested Citizen, expressed concern with the merits of the audit and noted fear that VTA is pushing Outreach out. Elizabeth Lozano, Outreach driver, expressed the need for improvements in scheduling and a better solution for routing. Art Takahara, President and CEO, DeAnza Manufacturing Services, expressed concern with the oversight during the past 23 years and suggested working with Outreach to resolve issues before terminating the contract. Marilee Zerrougui, Teamsters Local 287, expressed concern with routing and daily schedules, noting the stress and frustration of drivers who are seemingly set-up for failure. Matthew Reed, United Seniors Action Committee at Sacred Heart, expressed concern with the information in the materials provided not being consistent with the current level of service which can create barriers and decrease program participation. He requested VTA reconsider, noting Outreach is an intergrated fabric in the community and is at the center of senior transportation and mobility management in the County. Priscilla Gonzales, former Outreach employee, stated she had been asked to modify records while working for Outreach. She expressed concern for the clients with disabilities and expressed hope that VTA can intervene and step-up for seniors in the community. Bikram Jeet Singh, Interested Citizen, expressed support for Outreach. Diana Salazar, Sacred Heart, expressed concern with the eligibility process changing for new applicants and requested clarification. Paul Tatsuda, Outreach, clarified that rides provided under the Senior Nutrition Safety-Net Mobility Management Program are subsidize paratransit rides. Kathryn Heatley, CEO Outreach, provided a written response from Outreach and a report from the Federal Transit Administration (FTA) which was distributed to the Board and placed on the public table. She indicated she saw the audit report for the first time on Monday. Ms. Heatley noted there was a $2.5 million upgrade in software which she asked staff to manually modify as a test. She indicated she can provide clarity if given the opportunity to sit down with VTA staff. Aaron Vogel, Regional Transportation Services Manager, provided a presentation highlighting: 1) Background; 2) During 12 month transition; and 3) Next steps and milestones. Page 5 of 11

77 6.2 MINUTES BOARD OF DIRECTORS Friday, June 24, 2016 Public Comment Ms. Applegate expressed concern with the lives that will be affected and the importance of the process, noting the need for public comment. Chairperson Chavez indicated discussions had with paratransit users were per her request so that there was no confusion as to what was happening. The Board discussed the following: 1) communication to Outreach regarding discrepancies; 2) conclusions; 3) data reporting and possible overbilling; 4) data reporting patterns; 5) magnitude of costs; 6) dates of request for data; 7) what data is required by the contract; 8) what the audit looked at; and 9) terminating the contract for convenience versus cause. Upon request from Board Member Liccardo, Ms. Gonzales provided additional information on the following: 1) her position at Outreach; 2) modifying records; 3) the timeframe the modifications took place; and 4) the amount of people who were asked to modify data. Upon inquiry from Vice Chairperson Bruins, Mr. Hagan indicated the request for data was made January 2016 and February He noted only after VTA issued Outreach a breach of contract did the information come in. Upon inquiry from Board Member Hendricks, Bernice Alaniz, Director of Communications, provided an overview of the information provided in phone calls to customers regarding the Outreach contract and paratransit service. Board Member Khamis thanked Chairperson Chavez for highlighting the issue and staff for working diligently to rectify the situation. He expressed concern with continuing the contract for a whole year, noting the significant amount of funds that have not been accounted for, but noted the need to provide uninterrupted service. Board Member Khamis suggested the following: 1) future contracts include metrics in language so rides can be tracked without interference to maintain integrity in data; and 2) having a customer rating system in place as a part of the measurement tools in the contract. Board Member O Neill agreed the contract should be rebid, but expressed concern with the following: 1) the contract went 20 years without being rebid; 2) not providing time for Outreach senior staff to go through the audit findings; and 3) change in technology and data migration issues. She questioned if something last year triggered a review of this depth. Chairperson Chavez provided background information on the paratransit contract, noting the apprehension of the Board to rebid the contract due to users of the service not wanting to change contractors. Chairperson Chavezindicated the Audit Committee agreed with the VTA Auditor General that the Outreach contract needed to be reviewed. She noted the Phase I Audit did not answer all questions so the Phase II Audit was conducted and has resulted in staff s recommendation to terminate the contract. Page 6 of 11

78 MINUTES BOARD OF DIRECTORS Friday, June 24, 2016 Upon inquiry of Chairperson Chavez, Mr. Vogel noted the report was provided to Outreach on Monday and has not yet been reviewed with them. Alternate Board Member Peralez expressed concern on VTA s lack of contract oversight. He noted evergreen contracts allow for complacency and indicated he is not in favor of having one with any future contracts. He expressed concern with some of the information being presented and noted Outreach should be required to respond and settle concerns that have been raised before being able to bid for the next contract. He also suggested staff review policies and procedures to prevent double billing in the future and to research whether or not it has already occurred. Chairperson Chavez indicated staff will continue to ask for information. Ms. Evans indicated staff will be reaching out to other parties in an effort to investigate double billing. Board Member Baker noted the importance of placing emphasis on this action being about the contract and not the service. He did note, however, several of his constituents indicated they would like better service, because it is frequently late. He expressed concern with comments from the public regarding sheduling and favoritism with clients and suggested Outreach respond to that as well. Board Member Hendricks expressed support of the recommendation, noting there is enough information to terminate for convenience. He urged staff to take a look at service provided to customers, quality of service and processes around how it is done. Upon inquiry from Board Member Nguyen, Rob Fabela, General Counsel, provided information on procedures involved in terminating a contract for convenience and terminating a contract for cause. Board Member Nguyen suggested having assurance that the next contract will provide better service and lower costs. Upon inquiry from Vice Chairperson Bruins regarding the availability of data, Ms. Heatley stated she was prohibited by Trapeze to turn data over to VTA. She addressed Ms. Gonzales statements regarding the upgrade and indicated there was a testing period, but the data was restored. She encouraged the Board to take the action to rebid the contract. Ms. Heatley noted many of the things can be explained and indicated she would be glad to meet with VTA staff to work to move things forward. Vice Chairperson Bruins stressed the audit was of VTA and not Outreach and indicated the same action would have to be taken to rebid the contract. She emphasized the need to have a contract that addresses all of the issues that have been uncovered and ensures internal procedures allow VTA to do due diligence and ensure all the users needs are being met, which VTA is ultimately responsible for. 6.2 Page 7 of 11

79 MINUTES BOARD OF DIRECTORS Friday, June 24, 2016 Board Member Khamis expressed concern that cooperation from Outreach was not received until very recently. He noted he is not in favor of evergreen contracts, because they invite insufficiency and do not promote innovation. He suggested staff see if there are any more Evergreen contracts at VTA. He noted given the information and funds unaccounted for, he is uncomfortable having Outreach be able to bid for the contract and suggested that there may be enough information to terminate the contract for cause. Nuria I. Fernandez, General Manager, emphasized as fixed route provider, VTA has an obligation to provide paratransit service. She noted it must be transparent and well structured so that if ever audited at federal level, VTA can substantiate and be clear that it has been well managed and oversight was adequate. She indicated when the audit report was received and vulnerabilities identified, VTA immediately hired additional staff with expertise and formed the Regional Transportation Services department. She noted they are reviewing and developing a new contract, because VTA cannot continue to operate under the existing contract. Chairperson Chavez noted the importance of the contract and thanked the public and Ms. Heatley for their input. M/S/C (Liccardo/Bruins) to review and receive the Auditor General's status report on Paratransit Operations Assessment testing, including the recommendation for VTA to exercise the one-year notice of contract cancellation provision in the contract with Outreach & Escort, Inc. (Outreach), while concurrently initiating the competitive procurement process for replacement paratransit services to ensure uninterrupted service to paratransit customers. 6.2 RESULT: MOVER: SECONDER: AYES: ABSENT: APPROVED [UNANIMOUS] Liccardo, Board Member Bruins, Board Member Baker, Bruins, Carr, Chavez, Hendricks, Khamis, Liccardo, Nguyen, O Neill, Peralez, Yeager Carrasco Board Member Liccardo requested the Board consider an additional motion to request Outreach provide a formal written response to the audit to allow the Board and staff to make the best decisions in the months ahead. Board Member Hendricks questioned the need for the motion and what is trying to be accomplished. Chairperson Chavez provided clarification, noting the Audit is complete because there is no more work that can be done without additional information. She indicated a formal request from Outreach to respond to the audit and provide any additional information staff is requesting will benefit the Board. Page 8 of 11

80 MINUTES BOARD OF DIRECTORS Friday, June 24, 2016 M/S/C (Liccardo/Chavez) to request Outreach & Escort, Inc. (Outreach) provide a formal written response to the audit and provide any additional information requested from staff. 6.2 RESULT: MOVER: SECONDER: AYES: ABSENT: APPROVED [UNANIMOUS] Liccardo, Board Member Chavez, Board Chairperson Baker, Bruins, Carr, Chavez, Hendricks, Khamis, Liccardo, Nguyen, O Neill, Peralez, Yeager Carrasco 7. OTHER ITEMS On order of Chairperson Chavez and there being no objection, the Board received a report on the Paratransit Operations Service Plan General Manager Report Board Member Yeager left his seat at 11:30 a.m. Nuria I. Fernandez, General Manager, provided a brief report on the following: Rotary Club providing free fireworks on July 4, 2016, in downtown San Jose, and VTA is enhancing its schedule to provide service on bus and light rail. Announced information on July service changes is now available on the VTA website. 7.1.A. Government Affairs Update 4. COMMITTEE REPORTS Chairperson Chavez noted the Government Affairs Update was included in the Board Members reading folders and placed on the Public Table Policy Advisory Board Chairperson s Report Chairperson Chavez noted a copy of the report was provided in the Board Members reading folders and on the Public Table. 7. OTHER ITEMS (continued) 7.2. Chairperson's Report Chairperson Chavez announced the August Board meeting will be held at the VTA River Oaks Campus. Page 9 of 11

81 6.2 MINUTES BOARD OF DIRECTORS Friday, June 24, Items of Concern and Referral to Administration There were no Items of Concern and Referral to Administration ANNOUNCEMENTS There were no Announcements. 8. CLOSED SESSION 8.1. Recessed to Closed Session at 11:41 a.m. A. Conference with Legal Counsel - Anticipated Litigation Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section Number of Cases: 1 B. Conference with Labor Negotiators (Government Code Section ) VTA Designated Representatives Raj Srinath, Chief Financial Officer Employee Organization Transportation Authority Engineers and Architects Association (TAEA), IFPTE, Local Reconvened to Open Session at 11:58 a.m Closed Session Report A. Conference with Legal Counsel - Anticipated Litigation Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section Number of Cases: 1 Rob Fabela, General Counsel, reported that no reportable action was taken during Closed Session. B. Conference with Labor Negotiators (Government Code Section ) VTA Designated Representatives Raj Srinath, Chief Financial Officer Page 10 of 11

82 MINUTES BOARD OF DIRECTORS Friday, June 24, 2016 Employee Organization Transportation Authority Engineers and Architects Association (TAEA), IFPTE, Local 21 Mr. Fabela reported reported that no reportable action was taken during Closed Session M/S/C (Liccardo/Khamis) to authorize the General Manager to approve and formally adopt the amended successor labor agreement negotiated between Santa Clara Valley Transportation Authority (VTA) and Transportation Authority Engineers and Architects Association (TAEA), IFPTE, Local 21. The approval of the labor agreement is subject to and contingent upon the ratification of the labor agreement by the TAEA membership. 6.2 RESULT: MOVER: SECONDER: AYES: ABSENT: APPROVED [UNANIMOUS] Liccardo, Board Member Chavez, Board Chairperson Baker, Bruins, Carr, Chavez, Hendricks, Khamis, Liccardo, Nguyen, O Neill, Peralez Carrasco, Yeager 9. ADJOURNMENT On order of Chairperson Chavez and there being no objection, the meeting was adjourned at 12:00 p.m. Respectfully submitted, Menominee McCarter, Board Assistant VTA Office of the Board Secretary Page 11 of 11

83 6.3 Date: July 27, 2016 Current Meeting: August 4, 2016 Board Meeting: August 4, 2016 BOARD MEMORANDUM TO: THROUGH: FROM: SUBJECT: Santa Clara Valley Transportation Authority Board of Directors General Manager, Nuria I. Fernandez Director of Government Affairs, Jim Lawson Append Project Lists to Resolution No (Ballot Measure) Policy-Related Action: Yes Government Code Section Applies: No ACTION ITEM RECOMMENDATION: Formally append to Resolution the candidate project lists previously approved by the Santa Clara Valley (VTA) Board of Directors on June 2, 2016 as part of the adoption of the framework and funding amounts for the ½ cent 30-year sales tax measure. BACKGROUND: At the June 2, 2016 Board of Directors meeting, the Board of Directors unanimously approved a Resolution attaching candidate project lists, and introduced an Ordinance placing before the voters the question of a ½ cent Sales Tax to fund various transportation projects and services. Subsequent to this action, the State Route 85 Corridor Policy Advisory Board (PAB) recommended more precise language to describe the projects proposed for the SR 85 Corridor. As a result of this recommended language change to the adopted Resolution, the Board unanimously agreed to revise only this language in the previously approved Resolution at its June 24 th meeting. At the June 24, 2016 Board of Directors Meeting, the Board voted unanimously to rescind Resolution No and adopt Resolution No , which revised only the language describing the State Route 85 Corridor-related projects North First Street San Jose, CA Administration Customer Service

84 6.3 DISCUSSION: Since there were no changes to the previously approved project lists, these lists were not included in the Board action on June 24 th. Because the approved project lists were not included in the June 24 th Board package, however, concern has been expressed about the Board s intent regarding the approved project lists. To avoid any possible confusion regarding the status of the approved project list, staff recommends the Board take formal action to append the attached lists entitled Attachment A, Attachment B, Attachment C and Attachment D to the approved Resolution No By taking this formal action, there will be a permanent record of the approved candidate project lists associated with Resolution No and the Ballot Measure proposed to the voters at the November 8, 2016 General Election. ALTERNATIVES: The Board may accept or reject the recommendation. Rejecting the recommendation may cause uncertainty as to the approved project list. FISCAL IMPACT: There is no fiscal impact to this decision. Prepared by: Jim Lawson Memo No ATTACHMENTS: Resolution No (PDF) Resolution No Attachments A thru D (PDF) Page 2 of 2

85 6.3.a 6.1.b RESOLUTION NO RESOLUTION OF THE BOARD OF DIRECTORS OF TI-lE SANTA CLARA VALLEY TRANSPORTATION AUTHORITY (VTA) CALLING AND PROVIDING FORA SPECIAL ELECTION ON NOVEMBER 8, 2016 AND REQUESTING THE CONSOLIDATION OF SUCH SPECIAL VTA ELECTION WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON NOVEMBER 8, 2016 FOR THE PURPOSE OF SUBMITTING TO THE VOTERS OF SANTA CLARA COUNfY A MEASURE SEEKING AUTHORIZATION FOR ADOPTION OF A RETAIL TRANSACTIONS AND USE TAX ORDINANCE BY THE BOARD OF DIRECTORS. WHEREAS, the Board of Directors of the Santa Clara Valley Transpmiation Authority (VTA) deems it advisable to submit a measure to the voters within the territory ofvta at a special election to be held on November 8, 2016, to authorize the VTA Board of Directors to adopt a onehalf of one percent retail transactions and use tax ordinance pursuant to Public Utilities Code section I et seq., which tax shall be in effect for 30 years, NOW THEREFORE BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE SANTA CLARA VALLEY TRANSPORTATION AUTHORITY that the measure hereinafter set fmih in full be submitted to the voters within the territory ofvta, which is the incorporated and unincorporated territory lying within the County of Santa Clara, at a special election to be held and conducted on November 8, 2016, and that the Registrar of Voters be, and thereby is, directed to publish such notice as may be required by law for the time and in the manner so required, and to place the same on the ballot at an election to be held throughout the territory ofvta on November 8, The full text of the proposed measure, which shall be printed in the voter information that accompanies the official vote by mail ballot and in the appropriate sample ballot pamphlet, is set f01ih as follows: To repair potholes and fix local streets; finish the BART extension throngh downtown San Jose and to Santa Clara; improve bicycle and pedestrian safety; increase Caltrain capacity, in order to ease highway congestion, and improve safety at crossings; relieve traffic on the expressways and key highway interchanges; and enhance transit for seniors, students, low-income, and disabled, shall the Board of Directors of the Santa Clara Valley Transpmiation Authority (VTA) enact a retail transactions and use lax ordinance, Ordinance No , in1posing (a) a tax for the privilege of selling tangible personal property at retail upon every retailer in Santa Clara County, the tenitory of VTA, such tax to be at the rate of one-half of one percent of the gross receipts of the retailer from the sale of tangible personal property sold by him/her at retail in the territory ofvta; and (b) a complementary tax upon the storage, use, or other consumption in Santa Clara County, the territory of VTA, such tax to be at the rate of one-half of one percent of the sales price of the propetiy whose storage, use, or other consumption is subject to the tax; collection of such tax to be limited to thitiy years? VTA shall be the administrator of the tax, shall establish a program and develop program guidelines to administer the tax revenues received from the enactment of l

86 6.3.a 6.1.i:J Resolution No this measure (the "Program"). Tax revenues received for the 30-year life ofthe tax, including any interest or other earnings thereon, less any funds necessary for satisfaction of debt service and/or cost of borrowing and costs of program administration and oversight, such as costs of grant administration and financial management, shall be referred to herein as "Program Tax Revenues." VT A shall allocate the Program Tax Revenues to the following categories of transportation projects: Local Streets and Roads; BART Phase II; Bicycle and Pedestrian; Caltrain Grade Separation; Caltrain Capacity Improvements; Highway Interchanges; County Expressways; SR 85 Corridor; and Transit Operations. The present value (i.e, present day purchasing power) of the Program Tax Revenues, as of April 2017, is forecasted to be approximately $6.3 Billion. The actual revenues to be received over the 30-year life of the tax will be affected by various economic factors, such as inflation and economic growth or decline. The estimated amounts for each category reflect the allocation of approximately $6.3 Billion. The estimated amounts for each category, divided by $6.3 Billion, establishes ratios for the allocation among the categories. The VTA Board of Directors may modify those allocation amounts following the program amendment process outlined in this resolution. Local Streets and Roads- Estimated at $1.2 Billion of the Program Tax Revennes in 2017 dollars. To be returned to cities and the County on a formula basis to be used to repair and maintain the street system. The allocation would be based on the population ofthe cities and the County of Santa Clara's road and expressway lane mileage. Cities and the County will be required to demonstrate that these funds would be nsed to enhance and not replace their current investments for road system maintenance and repair. The program would also require that cities and the County apply Complete Streets best practices in order to improve bicycle and pedestrian elements of the street system. If a city or the County has a Pavement Condition Index score ofat least 70, it may use the funds for other congestion relief BART Phase II-Estimated at $1.5 Billion of Program Tax Revenues in 2017 dollars (capped at a maximum of25% of Program Tax Revenues). To fund the planning, engineering, construction, and delivery costs of BART Phase!!, which will create a new regional rail connection by extending BART from the Berryessa Station in San Jose to Santa Clara with stations at Alum Rock/28'h Street, downtown San Jose, San Jose Diridon Station, and Santa Clara. Bicycle/Pedestrian- Estimated at $250 Million of Program Tax Revenues in 2017 dollars. To fund bicycle and pedestrian projects of countywide significance identified by the cities, County, and VTA. The program will give priority to those projects that connect to schools, transit, and employment centers; fill gaps in the existing bike and pedestrian network; safely cross barriers to mobility; and 2

87 6.3.a 6.1.b Resolution No make walking or biking a safer and more convenient means of transpmiation for all county residents and visitors. Bicycle and pedestrian educational programs, such as Safe Routes to Schools, will be eligible for funding. Candidate Projects are set fotih in Attachment A. Caitrain Grade Separation -Estimated at $700 Million of Program Tax Revenues in 2017 dollars. To fund grade separation projects along the Caltrain corridor in the cities of Sunnyvale, Mountain View, and Palo Alto, separating the Caltrain tracks from roadways to provide increased safety benefits for drivers, bicyclists, and pedestrians and also reduce congestion at the intersections. Caltrain Corridor Capacity Impmvements- Estimated at $314 Million of Program Tax Revenues in 2017 dollars. To fund Caltrain corridor capacity improvements and increased service in Santa Clara County in order to ease highway congestion, including: increased service to Morgan Hill and Gilroy, station improvements, level boarding, extended platforms, and service enhancements. Highway Interchanges - Estimated at $750 Million of Program Tax Revenues in 2017 dollars. To fund highway projects throughout the valley that will provide congestion relief, improved highway operations and freeway access, noise abatement, roadway connection overcrossings, and deploy advanced technology through Intelligent Transportation Systems (ITS). Candidate Projects are set fmih in Attachment B. County Expressways - Estimated at $750 Million of Program Tax Revenues in 2017 dollars. To fund Tier 1 improvement projects in the County's Expressway Plan in order to relieve congestion, improve safety and increase the effectiveness of the expressway system in the county. Candidate Projects are set fmih in Attachment C. State Route 85 Corridor - Estimated at $350 Million of Program Tax Revenue., in 2017 dollars. To fund new transit and congestion relief projects on SR 85, including a new transit lane from SR 87 in San Jose to U.S. 101 in Mountain View. Additionally this category will fund noise abatement along SR 85 and will provide funding to study transportation alternatives that include, but are not limited to, Bus Rapid Transit with infrastructure such as stations and access ramps, Light Rail Transit, and future transportation technologies that may be applicable. 3

88 6.3.a 6.1.b Resolution No Transit Operations - Estimated at $500 Million of Program Tax Revennes in 2017 dollars. The revenue from this program category will provide additional funds specifically for bus operations to serve vulnerable, underserved, and transit dependent populations throughout the county. The goals of the program category are to increase ridership, improve efficiency, enhance mobility services for seniors and disabled, and improve affordability for the underserved and vulnerable constituencies in the county. As VTA considers modifications to bus operations and routes to improve ridership and efficiencies, these funds may also be utilized to maintain and expand service to the most underserved and vulnerable populations. The funds may be used to increase core bus route service frequencies, extending hours of operations to early morning, evenings and weekends to improve mobility, safe access and affordability to residents that rely on bus service for critical transportation mobility needs. Attachment D describes the list of Candidate Projects and Programs. The Program Categories will be administered in accordance with program guidelines and policies to be developed and approved by the VTA Board of Directors. An independent citizen's oversight committee shall be appointed to ensure that the funds are being expended consistent with the approved Program. Annually, the committee shall have an audit conducted by an independent auditor. The audit shall review the receipt of revenue and expenditure of funds. The committee shall hold public hearings, and issue a report annually to infonn the Santa Clara County residents how the funds are being spent. The hearings will be public meetings subject to the Brown Act. To suppmt and advance the delivery ofprojects in the Program, VTA may issue or enter into financial obligations secured by the tax revenues received from the State Board of Equalization (SBOE), including but not limited to, bonds, notes, commercial paper, leases, loans and other financial obligations and agreements (collectively, "Financing Obligations"), and may engage in any other transactions a!lovved by la\a/, Notv.rithstanding anything to the contrary, to obtaln the strungesl credit ratings and lowest financing costs, VTA may pledge up to the full amount of tax revenues received from the SBOE as security for any Financing Obligations of the Program and may contract with the SBOE to have pledged amounts transferred directly to a fiduciary, such as a bond trustee, to secure Financing Obligations to fund any project in the Program. Any Financing Obligation shall be fully paid prior to the expiration of this tax measure. If approved by a 3/4 majority of the VTA Board of Directors, and only after a noticed public meeting in which the County of Santa Clara Board of Supervisors, and the city council of each city in Santa Clara County have been notified at least 30 days prior to the meeting, VTA may modify the Program for any prudent 4

89 6.3.a 6.1.b Resolution No pm1jose, including to account for the results of any environmental review required under the California Environmental Quality Act ofthe individual specific projects in the Program; to account for increases or decreases in federal, state, and local funds, including revenues received from this tax measure; to account for unexpected increase or decrease in revenues; to add or delete a project from the Program in order to carry out the overall purpose of the Program; to maintain consistency with the Santa Clara Valley Transportation Plan; to shift funding between project categories; or to take into consideration new innovations or unforeseen circumstances. BE IT FURTHER RESOLVED that such measme will appear in summarized form upon the ballot as follows: Measure To relieve traffic, repair potholes; shall VTA enact a 30-year half-cent sales tax to: Repair streets, fix potholes in all 15 Finish BART extension to downtown San Jose, Santa Clara; Improve bicycle/pedestrian safety, especially near " schools;.. Increase Caltrain capacity, easing highway congestion, improving safety at crossings;.. Relieve traffic on all 9 expressways, key highway interchanges; Enhance transit for seniors, students, disabled; " Mandating annual audits by independent citizens watchdog committee to ensure accountability. YES NO BE IT FURTHER RESOLVED that the Board of Supervisors is hereby requested to consolidate this election with the statewide general election and any other elections to be held within the County of Santa Clara on November 8, 2016, and that it include in its proclamation or notice ofthe special election that Article 3 ofchapter 2 ofdivision 9 ofthe Elections Code relating to arguments concerning county measure applies, and that the Office of the County Counsel is directed to prepare an impatiial analysis. BE IT FURTHER RESOLVED that pursuant to Elections Code section 10403, VTA aclmowledges that the consolidated election will be held and conducted in the manner prescribed in Elections Code section I BE IT FURTHER RESOLVED that the Santa Clara County Board of Supervisors is requested to permit the Registrar of Voters to render all services specified by Elections Code section I 0418 relating to the election, for which services VTA agrees to reimburse the County. 5

90 6.3.a 6.1.b BE IT FURTHER RESOLVED that pursuant to Elections Code section , all proceedings related to, connected with, and incidental to the election shall be regulated and perfonnedi n accordance with the pr.ov isions oflaw regulating the statewide election. BE IT FURTHER RESOLVED that the returns of such VTA election shall be canvassed by the Registrar of Voters ofthe County of Santa Clara and the returns, when canvassed, shall be repmied to t he Board ofdirectors of the Santa Clara Valley Transpotiation Authority. BE IT FURTHER RESOLVED that the Board Secretary is hereby directed to file a cetiified copy ofthis Resolution with the Santa Clara County Board of Supervisors and to submit certified copies ofthis Resolution to the County Clerk and to the Registrar ofvoters ofthe County of Santa Clara no later than 88 days prior to the date ofthe election. PASSED AND ADOPTED by the Santa Clara Valley Transportation Authority Board ofdirectors on June by the followi ng vote: AYES: NOES: ABSENT: DTIRECTORS: Baker, Bruins, Carr, Chavez, Hendricks, Khamis, Liccardo, Nguyen, O'Neill, Peralez, Yeager DTIRECTORS: None DIRECTORS: Carrasco ATTEST: E laine Balta, Board Secretary APPROVED AS TO FORM: ROBERT FABELA General Counsel Resolution No

91 6.3.b ATTACHMENT A ENVISION SILICON VALLEY BICYCLE AND PEDESTRIAN CANDIDATE LIST Project Implementation of Santa Clara Countywide Bicycle Plan* Trails in Expressway Rights-of-Way Alum Rock Trail Coyote Creek Trail Completion Lions Creek Trail Lower Silver Creek Trail Miramonte Ave Bikeways Fremont Road Pathway Los Gatos Creek Trail Connector to SR 9 Berryessa Creek Trail West Llagas Creek Trail Gualadupe River Trail-Extension to Almaden Three Creeks Trail East from Guadalupe River to Coyote Creek Trail Five Wounds Trail from William Street to Mabury Road/Berryessa Hwy 237 Bike Trail: Great America Parkway to Zanker (Class I, II, and IV) Lower Gudalupe River Access Ramps Los Gatos Creek Trail Gap Closure Calabazas Creek Trail San Tomas Aquino Trail Extension to South & Campbell Portion Union Pacific Railroad Trail Stevens Creek Trail Extension Hamilton Avenue/Highway 17 Bicycle Overcrossing Ped/Bike Bridge over SR 17 from Railway/Sunnyside to Campbell Technology Pkwy Mary Avenue Complete Streets Conversion UPRR Bike/Ped Bridge Crossing: Stevens Creek Boulevard to Snyder Hammond House/Rancho San Antonio Park A 1

92 6.3.b Montague Expwy Bike/Ped Overcrossing at Milpitas BART Station Shoreline/101 Bike Ped Bridge Mayfield Tunnel Ped/Bike under Central Expressway connecting to San Antonio Caltrain station South Palo Alto Caltrain Bike/Ped Crossing Matadero Creek Trail Undercrossing Caltrain Capitol Undercrossing Phelan Avenue Pedestrian & Bike Bridge over Coyote Creek Newhall Street Bike/Ped Overcrossing over Caltrain Tracks Kiely Bicycle & Pedestrian Overcrossing Winchester Bicycle and Pedestrian Overcrossing Bernardo Caltrain Undercrossing San Tomas Aquino Creek Trail Underpass at 49er Stadium Latimer Avenue Bicycle/Pedestrian Overcrossing Bike & ped safety education at approximately ~200 schools Implementation of Pedestrian Access to Transit Plan (VTA)* Bike amenities at transit stops and on transit vehicles Countywide Vision Zero Program (VTA)* Highway 9 Pedestrian Safety Improvements *These plans are currently being developed/updated and projects are being identified. A 2

93 6.3.b ATTACHMENT B ENVISION HIGHWAY PROGRAM CANDIDATE LIST Project US 101 Improvements in the cities of Palo Alto and Mountain View to address regional connectivity and circulation between San Antonio Road and Charleston Road at the US 101/San Antonio Road, US 101/Rengstorff/Charleston Road and US 101/Shoreline Boulevard interchanges. SR 85/SR 237 Area Improvements in Mountain View to address mainline congestion and regional connectivity through the SR 85/SR 237 connector, SR 85/El Camino Real interchange, and the SR 237/El Camino/Grant Road interchange. SR 237/US 101/Mathilda Avenue Area Improvements in Sunnyvale to address local roadway congestion. SR 237 Corridor Improvements in the cities of San Jose, Santa Clara and Milpitas to address mainline congestion and regional connectivity by addition of SR 237 westbound/eastbound auxiliary lanes between Zanker Road and North First Street, improvements at the SR 237/Great America Parkway westbound off-ramp, and replacement/widening of the Calaveras Boulevard structures over the UPRR tracks. West County Improvements along I-280 in Cupertino, Los Altos, Los Altos Hills and Sunnyvale to address mainline congestion with mainline and interchange improvements from Magdalena Avenue to the San Mateo County line. SR 85/I-280 Area Improvements in Cupertino, Los Altos, and Sunnyvale to address regional connectivity through a northbound I-280 braided ramp between SR 85 and Foothill Boulevard and improvements at the northbound I-280 off-ramp to Foothill Boulevard. US 101/Trimble Road/De La Cruz Boulevard to Zanker Road Area Improvements to address local roadway connectivity and mainline congestion in San Jose and Santa Clara with US 101/Trimble Road/De La Cruz Boulevard interchange improvements, southbound US 101/SB 87 connector improvements, and a new US 101/Zanker Road interchange. US 101/Old Oakland Road Improvements in San Jose to address local roadway congestion, access and connectivity. A new interchange at US 101/Mabury Road in San Jose to address regional access. I-680 Corridor Improvements in San Jose to address mainline congestion and regional connectivity by improving the I-680/Alum Rock Avenue and I-680/McKee Road interchanges. I-280/Lawrence Expressway/Stevens Creek Boulevard Interchange Improvements to address mainline and local roadway congestion. B 1

94 6.3.b I-280/Saratoga Avenue Interchange Improvements to address local circulation and mainline congestion. I-280/Winchester Boulevard Area Improvements in Santa Clara and San Jose to address regional connectivity and local circulation. SR 87 Corridor Technology-based Improvements in San Jose to address mainline congestion and system reliability through the implementation of technology-based operational improvements to the freeway. Highway 17 Corridor Congestion Relief: Upgrade Highway 17/9 interchange to improve pedestrian and bicycle safety, mobility, and roadway operations; deploy advanced transportation technology to reduce freeway cut thru traffic in Los Gatos, including traffic signal control system upgrades in Los Gatos, Traveler Information System, advanced ramp metering systems; support Multi-Modal Congestion Relief Solutions, including enhanced Highway 17 Express Bus service, implementing local bus system improvements that reduce auto trips to schools, work, and commercial areas in Los Gatos; and develop park and ride lots to serve as transit hubs for express bus, shuttles, local bus system connections. SR 17 Southbound/Hamilton Avenue Off-ramp Widening Improvements in Campbell to address mainline congestion and local circulation. SR 17/San Tomas Expressway Improvements in Campbell to address mainline congestion and local circulation. US 101/Blossom Hill Boulevard improvements in San Jose to address local roadway congestion and connectivity including for bicyclists and pedestrians. US 101 Improvements in Gilroy to address mainline congestion and regional connectivity with a new US 101/Buena Vista Avenue interchange and US 101/SR th Street ramp and intersection improvements. SR 152 Corridor Improvements in Gilroy including US 101/SR 25 interchange improvements to address regional connectivity and goods movement network improvements. I-280/Wolfe Road Interchange Improvements in Cupertino to address mainline congestion and improve local traffic circulation. I-880/Charcot Avenue Overcrossing in San Jose to address local relief circulation and adjacent I- 880 interchanges congestion relief. Noise Abatement Projects in Santa Clara County to implement treatments to address existing freeway noise levels throughout the county. Intelligent Transportation Systems (ITS) Projects in Santa Clara County such as integrated corridor management systems, traffic operations systems, ramp metering, managed lanes, and local traffic signal control systems to address freeway mainline congestion and local roadway congestion caused by cut-through traffic. B 2

95 6.3.b ATTACHMENT C SANTA CLARA COUNTY EXPRESSWAY IMPROVEMENTS (TIER 1) Project Almaden Expressway at SR-85 - Interim Improvements Almaden Expressway at Branham Lane Intersection Improvement Almaden Expressway at Camden Ave Intersection Improvements Capitol Expressway Widening and Interchange Modifications between I-680 and Capitol Avenue Central Expressway at Thompson Intersection Improvement Foothill Expressway Auxiliary Lanes between El Monte and San Antonio Lawrence Expressway at Homestead Road Interim Improvements Lawrence Expressway at Homestead Road Grade Separation Lawrence Expressway from Reed/Monroe to Arques Grade Separation Montague Expressway Complete 8-lane Widening including HOV lanes and Auxiliary Lanes between Great Mall and McCarthy/O'Toole Oregon-Page Mill Widening (possible HOV lanes) and Trail between I-280 and Foothill Expressway Oregon-Page Mill Intersection Improvements between Porter and Hansen Oregon-Page Mill/El Camino Real Intersection Improvements San Tomas Expressway Widening and Trail between Homestead and Stevens Creek Santa Teresa-Hale Corridor Road and Trail between Dewitt and Main Santa Teresa-Hale Corridor Widening and Trail between Long Meadow and Fitzgerald SR 17/San Tomas Expressway Interim Improvements I-280/Foothill Expressway Interchange Modifications and Auxiliary Lane to Homestead I-280/Oregon-Page Mill Road Interchange Reconfiguration Expressway ITS/Signal System Countywide C 1

96 6.3.b ATTACHMENT D TRANSIT OPERATIONS CANDIDATE PROJECTS AND PROGRAMS LIST Expand mobility services and affordable fare programs for seniors, disabled, students and low-income riders. This project would provide funds to develop and expand senior and disabled transportation mobility programs and services. The proposed program would provide mobility options such as coordinated eligibility services and enhanced mobility options provided in a secure and safe manner for the most vulnerable and underserved residents in the County, such as seniors and persons with disabilities. It would support mobility options including maintaining the paratransit service coverage area and service expansion by extending hours of operation and weekend service. The funds would also establish permanent and augment discount fare programs to increase transit access for low-income, underserved and vulnerable populations unable to afford standard fares. Enhance Frequent Core Bus Network. The project would upgrade service frequency on VTA s top core network routes to 15- minutes or faster. Some specific examples include expanding the number of high frequency core routes and expanding the schedule of existing services. This may also include enhancing frequency of services during early mornings, evenings and weekends in order to improve convenience, reliability, connectivity, ridership, farebox recovery and support local land use plans. The upgrade would improve the quality of service for vulnerable, underserved and transit dependent populations as well as existing riders and attract new riders which would decrease vehicle miles traveled, traffic congestion and pollution. Improve amenities at bus stops to increase safety, security and access. The project would provide funds for system wide improvements to bus stops, transit centers and stations including new and replacement shelters, lighting, access improvements including safe sidewalk connections, passenger information signs and security. Support new innovative transit service models to address first/last mile connections. The project would support affordable new innovative transit service models to address first/last mile connections including FLEX type services, dynamic on-demand subscription shuttles and partnerships with other demand responsive service providers serving vulnerable, underserved and transit dependent populations. D 1

97 6.4 Date: July 27, 2016 Current Meeting: August 4, 2016 Board Meeting: August 4, 2016 BOARD MEMORANDUM TO: THROUGH: FROM: SUBJECT: Santa Clara Valley Transportation Authority Board of Directors General Manager, Nuria I. Fernandez Board Secretary, Elaine Baltao Ratification of Appointments to the Bicycle & Pedestrian Advisory Committee Policy-Related Action: No Government Code Section Applies: No ACTION ITEM RECOMMENDATION: Ratify appointments to the Bicycle & Pedestrian Advisory Committee for the two-year term ending June 30, 2018 of: (1) Barry Chaffin, representing the City of Monte Sereno, (2) Wes Brinsfield, representing the City of Los Altos; (3) Paul Goldstein, representing the City of Palo Alto; (4) Peter Hertan, representing the Town of Los Gatos; and (5) Sarah Peters, representing the City of Santa Clara. BACKGROUND: The Bicycle & Pedestrian Advisory Committee (BPAC) advises the VTA Board of Directors on planning and funding for bicycle and pedestrian projects and issues. The BPAC consists of 16 voting members, one appointed by each of VTA s Member Agencies (the 15 cities in the county and the County of Santa Clara), and one non-voting member and alternate appointed by the Silicon Valley Bicycle Coalition (SVBC). The BPAC also serves as the countywide bicycle and pedestrian advisory committee for the County of Santa Clara. The BPAC bylaws specify that the appointment term is two years and that members may be appointed to successive terms. Committee members must live, work or both in Santa Clara County during their term. Voting members of the Committee must also be a representative of the Member Agency s local bicycle advisory committee or, for Member Agencies without a local bicycle advisory committee, their representative must be an individual who lives or works in the local jurisdiction and is interested in bicycle or pedestrian issues. BPAC members are precluded from representing a Member Agency that is their employer North First Street San Jose, CA Administration Customer Service

98 6.4 The process to fill BPAC vacancies is that staff notifies the appointing authority of the vacancy or approaching term expiration and provides the current membership requirements. The appointing authority then appoints one member for the designated membership position. For vacancies occurring mid-term, the bylaws specify that they be filled for the remainder of the term by the appointing authority. In both cases, the VTA Board must ratify the appointment. DISCUSSION: VTA staff recently notified appointing authorities on the June 30th BPAC expiration of the current term, advised them on their current representative s standing, provided information on the appointment process, and requested that they appoint their BPAC representative for the new term. In response, the following individuals were appointed by their respective appointing authority to serve as their BPAC representative for the new two-year term that commences July 1, 2016: Reappointment The City of Monte Sereno has re-appointed Barry Chaffin, who was first appointed to the committee in August The City of Los Altos has re-appointed Wes Brinsfield, who has served on the committee since The City of Palo Alto has re-appointed Paul Goldstein, who has served on the committee since The Town of Los Gatos has re-appointed Peter Hertan, who was first appointed to the committee in August These individuals are members in good standing, have served the committee well, and are eligible for re-appointment. New Appointment The City of Santa Clara has appointed Sarah Peters to serve as its BPAC representative. She replaces Dale Schouten, who recently completed his term of service on Santa Clara s Bicycle & Pedestrian Advisory Committee. Ms. Peters, who lives in Santa Clara, has lived there for two years and in California since She is a transportation planner and works for Fehr & Peers, a national transportation planning and engineering services company. She earned her Master's in Urban and Regional Planning from UCLA and her Bachelor of Arts in Liberal Arts from St. John's College in Annapolis, Maryland. Her civic and community service includes volunteering with the Silicon Valley Bicycle Coalition (SVBC), with Walk Oakland Bike Oakland, and with the Oakland Library adult literacy program. In addition, she previously served as a Peace Corps volunteer, including two years of service in Mali. She is also a member of the SVBC. Page 2 of 3

99 6.4 Ms. Peters is an avid cyclist, having been a daily bicycle commuter since 2013 and having ridden a bicycle as one of her primary transportation modes since Based on her qualifications, experience, community involvement, and knowledge of bicycle, pedestrian, trails and safety issues, staff recommends that the Board ratify the appointment of this individual. ALTERNATIVES: The Board could choose to not ratify any or all of these appointments. FISCAL IMPACT: There is no fiscal impact as a result of this action. STANDING COMMITTEE DISCUSSION/RECOMMENDATION: Because its next meeting is not until September 1, 2016, the Governance & Audit Committee was not able to review and provide a recommendation to the Board on this item. Prepared by: Stephen Flynn, Advisory Committee Coordinator Memo No Page 3 of 3

100 6.5 Date: July 25, 2016 Current Meeting: August 4, 2016 Board Meeting: August 4, 2016 BOARD MEMORANDUM TO: THROUGH: FROM: SUBJECT: Santa Clara Valley Transportation Authority Board of Directors General Manager, Nuria I. Fernandez Director of Government Affairs, Jim Lawson Bill Positions Policy-Related Action: No Government Code Section Applies: Yes ACTION ITEM RECOMMENDATION: Adopt a support position for the following bills: 1) AB 1889 (Mullin), which facilities the expenditure of $1.1 billion in Proposition 1A bond proceeds appropriated to the California High-Speed Rail Authority in 2012 for projects in the northern- and southern-most portions of the state's high-speed train system, including electrification of the Peninsula Corridor. 2) AB 2090 (Alejo), which allows a public transit agency to use its Low Carbon Transit Operations Program formula share to support the operation of existing service if the agency declares a fiscal emergency pursuant to the California Environmental Quality Act (CEQA). 3) SB 1128 (Glazer), which removes the sunset pertaining to a Bay Area ordinance requiring certain employers in the region to offer commute benefits to their employees. BACKGROUND: Staff is recommending that the Board of Directors adopt support positions for the following three bills: (1) AB 1889; (2) AB 2090; and (3) SB DISCUSSION: AB 1889: Rapid population growth, congested highways and constrained airports prompted California policymakers to make the decision to develop, construct and operate a high-speed train system in the state along the lines of those that have been in operation for decades in Europe and Asia. In 2000, the California High-Speed Rail Authority, the agency responsible for 3331 North First Street San Jose, CA Administration Customer Service

101 6.5 planning, building and operating the state s high-speed train system, unveiled a plan for an 800- mile network that would link all of California s major population centers, including the Bay Area, Los Angeles, Sacramento, the Inland Empire, Orange County, and San Diego. To fund the core segment of the state s high-speed train system, SB 1856 (Costa) was enacted in 2002 to provide for the submission of the Safe, Reliable, High-Speed Passenger Train Bond Act for the 21 st Century to the voters of California for their approval. This act calls for issuing a total of $9.95 billion in bonds, $9 billion of which would be used in conjunction with federal and private funds to plan and build the first phase of the system, which would run from the Los Angeles Basin to the Bay Area. The remaining $950 million was targeted for urban, commuter and intercity rail projects that: (1) provide connectivity to the high-speed train system; or (2) enhance the capacity or safety of urban, commuter or intercity rail services. Under the provisions of SB 1856, the bond act was initially scheduled for the 2004 general election. However, two subsequent pieces of legislation postponed its consideration until November 2008, at which time it was approved by California voters as Proposition 1A. In July 2012, the Legislature passed and Gov. Jerry Brown signed into law SB 1029, which provided approximately $8 billion in spending authority for California s high-speed train system. Specifically, this measure appropriated $5.85 billion to construct the first 130-mile segment of the system in the Central Valley. This amount included $2.61 billion in Proposition 1A bond funds matched with $3.24 billion in federal money. In addition, SB 1029 appropriated $1.1 billion in Proposition 1A bond proceeds to be made available by the High-Speed Rail Authority for early investments in the Peninsula Corridor and in the Los Angeles Basin, the so-called bookends of the high-speed train system, in order to prepare for blended operations between high-speed trains and existing commuter rail services in those areas -- Caltrain in the Bay Area and Metrolink in Southern California. Of this amount, $600 million was identified for improvements in the Peninsula Corridor, while $500 million was set aside for Southern California. Proposition 1A includes a provision that requires the High-Speed Rail Authority to prepare, approve and submit to the Department of Finance and the Legislature a detailed funding plan for a specific corridor or usable segment prior to committing any appropriated bond proceeds to projects in the corridor or segment. Among other things, such a plan must certify that a corridor or usable segment is suitable and ready for high-speed train operations. This requirement applies to the investment of Proposition 1A funds for any bookend projects in the Peninsula and Metrolink Corridors. In July 2016, the Caltrain Joint Powers Board (JPB) approved the awarding of a contract for the design and construction of electrification infrastructure along the Peninsula Corridor, which would be partially funded with the $600 million in Proposition 1A bond proceeds appropriated by the Legislature through the enactment of SB This investment would be utilized by both Caltrain and high-speed trains as part of the planned blended operations. While electrification would benefit the existing Caltrain Commuter Rail Service immediately upon completion of the project, high-speed trains are not expected to operate in the Peninsula Corridor until 2029, at the earliest. A similar situation exists in Southern California with respect to bookend investments in the Los Angeles Basin. As a result, there is some question as to Page 2 of 5

102 6.5 whether the Proposition 1A money appropriated by SB 1029 for bookend investments is allowable because of the ambiguous language in the bond measure requiring that a corridor or usable segment be certified as suitable and ready for high-speed train operations. AB 1889 clarifies that Proposition 1A bond proceeds expended for early investments that could be used by existing commuter/intercity rail services in the short term, but that facilitate highspeed train operations in the long term are deemed to meet the suitable and ready test. Because AB 1889 would facilitate the expenditure of $1.1 billion in previously appropriated Proposition 1A bond funding for bookend projects, including electrification of the Peninsula Corridor, staff recommends that the Board of Directors support this legislation. AB 2090: The Low Carbon Transit Operations Program (LCTOP) was created through the enactment of legislation in 2014 that established a framework for investing cap-and-trade dollars derived from allowance auctions held by the California Air Resources Board (CARB). Under this cap-and-trade investment framework, 5 percent of all auction proceeds is continuously appropriated to LCTOP, which provides operating and capital assistance to public transit agencies to reduce greenhouse gas emissions and improve mobility. LCTOP funding flows to public transit agencies according to the State Transit Assistance Program (STA) formula. If an agency s service area includes disadvantaged communities, at least 50 percent of its formula share must be used for projects or services that benefit those communities. Caltrans is responsible for administering LCTOP, in coordination with CARB. Under current law, in order for an operating or capital expenditure to be eligible for LCTOP money, it must support new or expanded service, and directly enhance or expand transit service to increase mode share. Some public transit agencies in California, however, are facing fiscal challenges that are making it difficult for them to maintain current service levels and, thus, are not in a position to use their LCTOP formula shares for new or expanded service. AB 2090, which is being sponsored by the Santa Cruz Metropolitan Transit District (Santa Cruz Metro) and is supported by the California Transit Association, allows LCTOP funds to be expended by a public transit agency to support the operation of existing bus or rail service if all of the following requirements are met: 1. The governing board of the public transit agency declares a fiscal emergency pursuant to the same process used for CEQA within 90 days prior to requesting its formula share of LCTOP funds. 2. The LCTOP funds are necessary to sustain the agency s public transit service in the fiscal year in which the money is to be spent. 3. The governing board of the public transit agency would have to reduce or eliminate public transit service if the LCTOP funds are not received. 4. The agency s governing board makes a finding that a reduction in, or elimination of, public transit service would increase greenhouse gas emissions because customers would choose other less environmentally friendly modes of transportation. Under the provisions of AB 2090, a public transit agency may not request LCTOP money to Page 3 of 5

103 6.5 support existing service for more than three consecutive fiscal years. If a public transit agency is forced to reduce or eliminate bus or rail service because of budget problems, not allowing the agency to access and utilize its LCTOP formula share to support existing service levels may be counterproductive. Service cuts eliminate transportation options for the affected communities and could shift people back to their cars for commuting or other trips, potentially resulting in an increase in greenhouse gas emissions. If a public transit agency declares a fiscal emergency, the use of LCTOP funding may help to mitigate the situation. Moreover, a three-year limit on the time that an agency may expend its LCTOP formula share for this purpose will ensure that the money will serve only as temporary assistance. Because AB 2090 would provide public transit agencies with an additional tool to maintain current service levels in a fiscal emergency and, thus, avoid cuts that could impact ridership and jeopardize the state s long-term greenhouse gas emissions reduction goals, staff recommends that the Board of Directors support this legislation. SB 1128: In 2009, three Bay Area cities -- San Francisco, Berkeley and Richmond -- adopted local ordinances requiring employers to offer their workers incentives to commute by public transit, ridesharing and bicycling. Based on the success of those efforts, the Metropolitan Transportation Commission (MTC) and the Bay Area Air Quality Management District (BAAQMD), in 2012, sought authorization from the Legislature to adopt a commute benefit ordinance that would apply regionwide. The resulting bill, SB 1339 (Yee), allowed MTC and BAAQMD, until January 1, 2017, to partner on developing and implementing a pilot ordinance requiring employers in the Bay Area with more than 50 employees to offer one of the following four commute benefits: 1. Pre-tax option: Employees may exclude from their taxable wages expenses incurred for public transit passes, vanpool charges or bicycle commuting up to the maximum amount allowed by federal tax law. 2. Employer-provided subsidy: An employer may subsidize public transit or vanpool fees paid by employees. The subsidy must be equal to the monthly cost of commuting by public transit or vanpool, or $75, whichever is lower. 3. Employer-provided transportation: An employer may provide free or low-cost commuter transportation service to its employees. 4. An alternative program approved by either MTC or BAAQMD that provides at least the same benefit as the aforementioned options. SB 1128 eliminates the January 1, 2017, sunset date, and allows MTC and BAAQMD to continue to implement a regional commute benefit ordinance on a permanent basis. According to MTC and BAAQMD, the goal of the regional commute benefit ordinance is to promote the use of public transit and other alternative transportation modes in order to reduce single-occupant vehicle commute trips, traffic congestion, and emissions of greenhouse gases and other air pollutants from motor vehicles. The ordinance seeks to achieve this goal by Page 4 of 5

104 6.5 expanding the number of employers who provide commute benefits to their employees. The Bay Area s commute benefit ordinance provides four options from which employers can choose to achieve compliance. The pre-tax option, whereby an employee may opt to have the employer deduct from his or her gross income the cost incurred to pay for alternative commuting options, was the most widely implemented, with 82 percent of employers offering this option. It discounts alternative commuting costs by as much as 40 percent for employees, and reduces the payroll taxes that an employer pays on employees wages by approximately 9 percent. Under current state law, MTC and BAAQMD were required to report to the Legislature on the effects of the regional commute benefit ordinance in order to provide an opportunity for lawmakers to evaluate the success of the program. According to this report, a total of 3,910 employers are registered and participating in the program, with 55 percent offering commute benefits for the first time. This translates to approximately 472,000 individual employees eligible to receive such benefits. Of these employees, MTC and BAAQMD indicate that an estimated 205,000 are actually using the benefits. The report, however, estimates that the ordinance may apply to as many as 10,000 Bay Area employers. Although current law allows penalties to be assessed for non-compliance, MTC and BAAQMD, for the time-being, have opted to emphasize compliance assistance over enforcement, and have focused on publicizing and conducting outreach activities to increase participation. The report further notes that the Bay Area s commute benefit ordinance has resulted in 4.3 million fewer vehicle trips in the region during its first 12 months of implementation, thereby reducing vehicle miles traveled by 86 million miles. The ordinance also has resulted in 36,000 fewer tons of carbon emissions or 2.7 percent of MTC s greenhouse gas reduction target under the region s sustainable communities strategy. Staff recommends that the Board of Directors support SB 1128 because there is great potential to build on these gains if the regional commute benefit ordinance is made permanent. ALTERNATIVES: The Board of Directors could decide to adopt a position for AB 1889, AB 2090 or SB 1128 that is different from the one being recommended, or could opt to take no position on any of these bills at this time. FISCAL IMPACT: There is no fiscal impact associated with this recommendation. Prepared by: Kurt Evans Memo No Page 5 of 5

105 6.6 Date: July 27, 2016 Current Meeting: August 4, 2016 Board Meeting: August 4, 2016 BOARD MEMORANDUM TO: THROUGH: FROM: SUBJECT: Santa Clara Valley Transportation Authority Board of Directors General Manager, Nuria I. Fernandez Director of Planning and Program Development, John Ristow Fiscal Year 2016 Federal Transit Administration (FTA) Grants Policy-Related Action: No Government Code Section Applies: No ACTION ITEM RECOMMENDATION: Authorize the General Manager to submit Federal Fiscal Year 2016 grant applications and execute grant agreements with the Federal Transit Administration (FTA) for Section 5307 Urbanized Area Formula, Section 5309 New Starts, Section 5337 Fixed Guideway and High Intensity Motorbus, and Section 5339 Bus and Bus Facilities funds. BACKGROUND: Existing FTA program statutes have been amended by the Fixing America s Surface Transportation (FAST) Act, signed by President Obama on December 4, The FAST Act is the new five-year surface transportation authorization the provides FTA an authorization level of $11.78 billion in FY 2016 and a total of $61.56 billion from FY 2016 through FY The FY 2016 Consolidated Appropriations Act provides full year apportionments for FTA formula and discretionary programs in DISCUSSION: A summary of VTA s proposed grant projects for FFY 2016 is provided below. See Table 1 for a complete listing of projects and programmed amounts. FTA Section 5307 Urbanized Area Formula Grant Program VTA proposes to use $33,824,944, the bulk of Section 5307 funding, for Bus Procurement and $3,711,401 for ADA Operating Set Aside to help meet its operating needs in FY VTA will pass through $689,629 to Peninsula Family Services Vehicle Loan Program and $1,308,909 to 3331 North First Street San Jose, CA Administration Customer Service

106 6.6 Family Transportation. FTA Section 5309 New Starts Grant Program Under the Section 5309 New Starts Program, funds in the amount of $150,000,000 are available for the SVBX Berryessa Extension in FFY FTA Section 5337 Fixed Guideway and High Intensity Motorbus Programs VTA proposes to use $8,977,500 of Section 5337 Fixed Guideway funding for various light rail projects. The projects are listed in the table below. FTA Section 5339 Bus and Bus Facilities Program VTA proposes to use $2,806,890 for Bus Procurement under the 5339 Bus and Bus Facilities Program. Table 1 FFY 2016 Federal Transit Grant Program Summary GRANT PROGRAM FEDERAL LOCAL TOTAL FTA Section 5307 Bus Procurement $33,824,944 $8,456,236 $42,281,180 ADA Operating Set Aside 3,711,401 $927,850 $4,639,251 Peninsula Family Services: Vehicle Loan 689, ,629 1,379,258 Family Transportation 1,308,909 1,308,909 2,617,818 Subtotal Section 5307 $39,534,883 $11,382,624 $50,917,507 FTA Section 5309 SVBX Berryessa Extension $150,000,000 $238,336,995 $388,336,995 FTA Section 5337 Rail Replacement Program $3,600,000 $900,000 $4,500,000 Rail Substation Rehab/Replacement 3,000, ,000 3,750,000 Light Rail Track Crossovers and Switches 777, , ,875 Track Intrusion Abatement 1,600, ,000 2,000,000 Subtotal Subsection 5337 $ 8,977,500 $ 2,244,375 $ 11,221,875 FTA Section 5339 Bus Procurement $2,806,890 $701,723 $3,508,613 FY 2016 FTA Grant Program $ 201,319,273 $ 252,665,717 $ 453,984,990 Page 2 of 3

107 6.6 The local matching funds for Penninsula Family Sevices and the Family Transportation Program come from non-vta sources, and the matching funds for the SVBX Berryessa Extension come from 2000 Measure A. All other matching funds come from VTA s Transit Enterprise account. ALTERNATIVES: The VTA Board may select other qualified projects. FISCAL IMPACT: These funds are included in the FY16 and FY17 Adopted 2000 Measure A Transit Improvement Program Fund Capital Budget and VTA Transit Fund Operating and Capital Budgets. Prepared by: Jeffery Ballou Memo No Page 3 of 3

108 6.7 Date: July 27, 2016 Current Meeting: August 4, 2016 Board Meeting: August 4, 2016 BOARD MEMORANDUM TO: THROUGH: FROM: SUBJECT: Santa Clara Valley Transportation Authority Board of Directors General Manager, Nuria I. Fernandez Director of Planning and Program Development, John Ristow Vehicle Registration Fee-Intelligent Transportation System Project List Policy-Related Action: No Government Code Section Applies: No ACTION ITEM RECOMMENDATION: Program an additional $1.2 million, for a total of $4.2 million, in Vehicle Registration Fee (VRF) Countywide funds to the Intelligent Transportation System (ITS) program and approve the programming of VRF-ITS funds to projects. BACKGROUND: Senate Bill 83 (Hancock) was signed into law in 2009, authorizing countywide transportation agencies such as VTA to implement a Vehicle Registration Fee (VRF) of up to $10 on motor vehicles registered within the county for transportation programs and projects. The voters of Santa Clara approved a VRF by majority vote on November 2, The Board adopted an expenditure plan allocating the revenue to transportation-related programs and projects that have a relationship or benefit to the persons who pay the fee. The plan dedicates 15% of the VRF revenue to the Countywide Program, which includes an Intelligent Transportation System (ITS) component. On December 10, 2015, the VTA Board of Directors Program adopted a three-year Countywide Program and devoted $3 million to ITS projects for 2015/16 to 2017/18. DISCUSSION: On January 5, 2016, VTA staff issued a call for projects for 2015/16 VRF ITS projects. In response, Member Agencies submitted four Regional Traffic Operations Personnel Service (RTOPS) and 24 Regional Intelligent Transportation System Maintenance Service (RITSMS) 3331 North First Street San Jose, CA Administration Customer Service

109 6.7 applications. RTOPS RTOPS is a transportation/traffic engineering consultant services program, including providing expertise to repair existing communications infrastructure. VTA received four RTOPS applications totaling $260,000. VTA staff recommends funding all of the submitted RTOPS projects as they meet the RTOPS requirement that funds are to be used for maintenance of existing communication equipment. RITSMS RITSMS is an operations and maintenance program to upgrade and replace ITS infrastructure, with projects funded on a competitive basis. Member Agencies submitted 24 projects for consideration in this round of funding, with a total grant request of $8,453,831, which is significantly in excess of the authorized amount of $3 million. On April 19, 2016, a scoring subcommittee of the Technical Advisory Committee's Systems Operations & Management Working Group (SOM Working Group) met to evaluate the RITSMS project applications, using Board-adopted project eligibility and screening criteria to evaluate potential candidate projects. In general, projects that scored well clearly demonstrated the following: 1. Project has local or regional significance 2. Project displays synergy between the various project selection categories 3. Project schedule specifies a quick project delivery with required planning/engineering work either minimal or completed. As discussed above, Member Agencies applications were significantly in excess of the $3 million that was allocated in December. Staff recommends that the Board program an additional $1.2 million in VRF Countywide Program funds, thereby increasing the available amount to $4.2 million in order to fund all projects with a minimum score of 30, as determined by the scoring subcommittee. Staff notes that there are sufficient funds in the Countywide Program to accommodate this recommendation. This recommendation is summarized in Attachments A (RTOPS) and B (RITSMS). Since RTOPS is intended to be a discretionary funding source to be allocated on an as-needed basis, staff recommends that the remaining $127,000 and any savings from the approved FY2012/13 projects be held in reserve to fund future projects. Attachment C lists the non-recommended RITSMS projects and Attachment D shows the board-approved scoring criteria. ALTERNATIVES: The Board could choose to program the VRF-ITS funds to other eligible projects and/or decline to increase the ITS allocation to $4.2 million. Page 2 of 3

110 6.7 FISCAL IMPACT: The VRF was enacted by the County's voters in November This action would make $4.2 million in VRF funding available to ITS projects. ADVISORY COMMITTEE DISCUSSION/RECOMMENDATION: The Technical Advisory Committee considered this item at its July 14, 2016 meeting and unanimously recommended that the Board approve the staff recommendation. Prepared by: Bill Hough Memo No ATTACHMENTS: Attachment_A-VRF-ITS recommended RTOPS projects (PDF) Attachment_B-VRF-ITS recommended RITSMS projects (PDF) Attachment_C-VRF-ITS non-recommended RITSMS projects (PDF) Attachment_D-VRF-ITS scoring criteria (PDF) Page 3 of 3

111 Attachment A VRF - ITS Funding: RTOPS Recommended Projects Local Agency Project Name Project Description Project Cost ($) San Jose Fiber Optic Asset Management Asset data collection, mapping services, software $ 70,000 San Jose On-Call Fiber Optic Splicing, Repair & Testing Repairs, splices, and testing $ 80,000 San Jose Santa Clara County Silicon Valley Wide-Area Network Monitoring and Maintenance Repair Fiber Optic Cables at Lawrence and San Tomas Expwys Third-party system monitoring and maintenance $ 60,000 Replace 2,000 ft FO cable $ 50,000 Subtotal: $ 260,000 Reserve Funds: $ 127,000 Total: $ 387,000 Memo No a

112 Rank Local Agency Project Name Description 1 Santa Clara Citywide ITS Project 2 on Monroe St., Benton St., and Lafayette 2 Los Gatos Town-wide Traffic Signal System Upgrade 3 Santa Clara Citywide ITS Project 1 on Tasman Drive, Great America Pkwy., Homestead Rd., Kiely Blvd., Scott Blvd., Saratoga Ave., and El Camino Real 4 Campbell Citywide ITS Enhancements Attachment B - Recommended RITSMS Projects Misc upgrades: controller, cameras, bluetooth readers, timing, HAWK sig, PCMS Signal controller upgrades at 30 intersections, video detection, new interconnect, timing, and central management system Misc upgrades: controllers, cameras, bluetooth readers, timing, FO comm, CMS 6 new signal controllers cabinets and service pedestals, routers, video detection, & EVP Committee Score Project Cost ($) $ 500, $ 500, $ 500, $ 500,000 5 San Jose Signal Retiming and Vehicle Detection Repairs Retime 121 signals, vehicle detection repairs $ 500,000 6 Santa Clara County 7 Sunnyvale ATMS Upgrades Traffic Signal Controller Upgrades at Various Locations 8 San Jose VIDS Communication Modules Upgrade 9 Los Altos Signal Timing and Coordination Improvement 25 new Naztec controllers $ 150,000 Enhance collection and display of local travel time data on Saratoga Ave and Mathilda Ave. Video detection and comm equipment for 118 intersections New traffic signal controllers and FO cable, and Synchro Green adaptive timing at 10 locations $ 500, $ 248, $ 415,000 Total: $ 3,813,000 Memo No b

113 Attachment C - Non-Recommended RITSMS Projects Rank Local Agency Project Name Description Committee Score Project Cost ($) 10 Campbell Winchester ITS Phase 2 Video detection, SIC replacement, new EVP $ 250, Sunnyvale Communications Network Repairs at Various Locations Two new network switches, LAN or wireless repairs at 34 locations $ 150, San Jose SCATS Repairs and Timing Repairs and timings for 35 intersections $ 447, Sunnyvale 14 Santa Clara County CCTV and Traffic Monitoring and Management System Upgrades New cameras and ITS management system $ 414,591 Pedestrian Detection Ped sensors for 10 crosswalks $ 200, Sunnyvale Video Detection Upgrades at Various Location 37 new vehicle detection cameras $ 496, Santa Clara County Traffic CCTV Camera Replacements 20 traffic cameras $ 50, San Jose VIDS Upgrade Video detection for 10 intersections $ 209, San Jose Bascom Ave ITS-Signal Communication Communication connection for 1 signal $ 50, Santa Clara County Traffic Signal Cabinet Upgrade (NEMA) 5 new signal cabinets $ 200, Sunnyvale Safewalk Pedestrian System Implementation New pedestrian detection sensors at 8 locations $ 469, Sunnyvale ITS Components Enhancements Crossroads Enhancements, new modules, data imports, map queries, costs, automation, & reports $ 304, Los Gatos Smart City ITS Network Parking and pedestrian/bike sensors and DMS $ 500, Palo Alto 24 Santa Clara County Downtown Mobility and Safety Strategies - Pedestrian Traffic Signal Upgrade Project New pedestrian countdown heads, and vibra-tactile push-buttons $ 500,000 Traffic Signal Battery Back-Up Replacements 20 battery back-up units $ 140,000 Total of Not Awarded Projects: $ 4,380,881 Memo No c

114 Attachment D - ITS Project Evaluation Criteria 6.7.d Project Category Traffic Operations System (TOS) Upgrading or replacing traffic signal controller Selection Parameters Shall be used for replacing obsolete traffic signal controller or upgrading traffic signal controllers to newer technologies with improved functionality to better respond to traffic conditions. Possible Points Upgrading or replacing vehicle detection system. Shall be used at signalized intersections with malfunctioning vehicle detection system or enhances detection system to provide improved traffic signal timing. Upgrading or replacing CCTV Cameras Upgrading or replacing communication equipment/infrastructure. Data collection device enhancements. Traffic Management Center (TMC) upgrades or enhancements. Pedestrian crossing enhancements. Operational Improvements Shall have available dedicated staff or automated systems to monitor cameras and have ability to adjust signal operations during the peak periods at minimum. Demonstrate ability to improve a traffic management system's or dedicated staff's ability to response to traffic conditions in real-time. Demonstrate ability to improve a traffic management system's or dedicated staff's ability to response to traffic conditions in real-time. Demonstrate ability to improve a traffic management system's or dedicated staff's ability to response to traffic conditions in real-time. Shall accommodate both vehicular and pedestrian movements and minimizes impacts on vehicular movements. 25 Timing plans must be greater than two years old or demonstrate that there is a significant land use change. Implement coordinated traffic signal timing. 20 Projects in this category that were not funded through MTC's PASS program will be given consideration. Innovative Capacity Enhancements Implementation or maintaining lane management. Motorist Information Upgrading, enhancing, or installing dynamic message signage (DMS). Mobile DMS for construction/incident traffic management. Enhancements that provide traffic information to motorists via the web, mobile phone, or Smartphone. Safety Enhancement Maximizes efficiency of existing lanes such as reversible lanes. 10 Demonstrate that signage will be actively used to provide information to motorists. Demonstrate that signage will be deployed when needed and actively used to provide information to motorists. Demonstrates ability to push real-time information to motorists, and shall be easy to use. 10 Bicycle/pedestrian enhancements. Shall accommodate both vehicular and bicycle/pedestrian movements. Signal priority/preemption. Shall accommodate both vehicular and emergency vehicular movements. 10 Enhanced warning signage. Shall demonstrate that the subject location is area with high collision rates. Asset Management: Inventory of Traffic Operations System (TOS) equipment. Collision reporting system. Demonstrate the importance of asset management to agency to support planning and programming efforts. 5 Project Readiness Additional points will be awarded to projects that do not have extensive engineering and planning efforts required. Shelf ready projects will get maximum points. Proposed projects shall have 95% plans, specifications, and estimates (PS&E) completed and shall attach necessary environmental approvals (e.g. category exemption, category exclusion, mitigated negative declaration, etc.). Project proponent must provide proof of the environmental approvals. Minimum requirements: 1. Proposed project shall be on either a street of local or regional significance. 2. Proposed project with a score below 20 points total will not be considered as a potential candidate project for the countywide VRF funds. 3. The minimum cost of each project shall be $50,000 and the maximum cost of each project shall not exceed $500,000. Total Points Possible: Page 1

115 6.8 Date: July 26, 2016 Current Meeting: August 4, 2016 Board Meeting: August 4, 2016 BOARD MEMORANDUM TO: THROUGH: FROM: SUBJECT: Santa Clara Valley Transportation Authority Board of Directors General Manager, Nuria I. Fernandez Director of Planning and Program Development, John Ristow 2015 Sustainability Report FOR INFORMATION ONLY BACKGROUND: On February 7, 2008, the Santa Clara Valley Transportation Authority (VTA) Board of Directors formally approved the VTA Sustainability Program. The Program s goal is "to strengthen VTA s commitment to the environment by reducing the consumption of natural resources, the creation of greenhouse gases, and the generation of pollution in the provision of public transportation services." Strategies to achieve this goal include educational programs and outreach, transitoriented development, increasing sustainability at existing facilities, incorporating green building practices in new facilities, and establishing a means of measuring the progress of the Sustainability Program. The 2015 Sustainability Report documents VTA s progress in achieving this goal and implementing these strategies with an existing budget of $500,000 each year for fiscal years 2016 and For the first time, this report includes historical data from 2008 to 2015 on VTA s use of fuel, energy, and water, and the generation of waste at all VTA facilities as a result of implementation of a Utility Management System. The report also lists VTA s past accomplishments, ongoing initiatives, and future plans. DISCUSSION: 2015 Highlights and Cost Savings Highlights of the 2015 Sustainability Report are as follows: 3331 North First Street San Jose, CA Administration Customer Service

116 6.8 In response to California s drought emergency, VTA reduced potable water consumption by 39% compared to These impressive reductions were achieved by partnering with San Jose Water Company to convert the bus wash at the Chaboya Division to recycled water, adjusting irrigation schedules to comply with municipal water restrictions, and closely monitoring over 90 water bills for anomalous usage. VTA replaced the lawn along North First Street at the River Oaks Administrative Offices with native and drought tolerant landscaping, and replaced conventional sprinklers with drip irrigation to minimize water lost due to evaporation and runoff. The Santa Clara Valley Water District provided a $32,002 rebate for this project. VTA completed the Federal Transit Administration s Environmental Management System Institute with an overall score of 99% on the final audit. The Environmental Management System, implemented at Cerone Bus Division, eliminated 277,000 polystyrene cups, saved $140,880 as a result of an in-house diesel particulate filter cleaning program, and reduced solid waste from absorbents by 66%. The Managed Document Services Project encourages the use of scanning and other technologies over printing and copying. By promoting multifunctional devices over older stand-alone units, VTA has reduced total device count by 65%, which will result in an estimated savings in consumables and electricity of $190,400 per year. VTA adopted the Sustainable Fleet Policy, which sets minimum miles per gallon (MPG) goals for future vehicle purchases, as well as goals for zero emission and hybrid vehicles. VTA plans to replace all conventional diesel buses with diesel-hybrid buses by VTA replaced over 600 light fixtures, saving $24,775 per year, at the following locations: River Oaks Administrative Offices; the Baypointe, Gish, Great America, Lick Mill, Metro, Mountain View, Old Ironsides, and Tasman light rail platforms; and the stations in the Downtown San Jose Transit Mall. The actions taken by the Sustainability Program in 2015 have resulted in cost savings of approximately $350,000 in APTA Recognition In May 2016, VTA achieved Gold level recognition through the American Public Transportation Association (APTA) Sustainability Commitment. This monumental accomplishment was achieved by making up to 10% reductions in energy, water, waste, greenhouse gases, and criteria air pollutants. Only three other transit agencies in California have achieved this recognition level or higher. Current and Future Projects Current and future projects by the Sustainability Program include the following: In March 2016, VTA prepared its first Greenhouse Gas Inventory. This inventory included emissions from VTA vehicle fleets, emissions from off-site generation of the electricity VTA consumes, and emissions from on-site combustion of propane and natural gas. Page 2 of 3

117 6.8 VTA and the City of San Jose are currently discussing a recycled water pipeline connection for irrigation at the River Oaks Administrative Offices. This connection could reduce potable water consumption by as much as 12 million gallons per year. The fiscal year 16/17 budget includes funding to replace the aging and inefficient train wash at Guadalupe Division. VTA will continue to install new and upgraded weather-based irrigation controllers, which adjust irrigation schedules based on current weather conditions, at various parkand-ride lots and transit centers. VTA will procure five electric buses as part of a pilot project to run the Free Airport Flyer route. VTA will purchase eight electric vehicles for the nonrevenue vehicle fleet. VTA will continue to replace existing lighting with LED light fixtures. Prepared By: Ann Calnan Memo No Page 3 of 3

118 6.8.a JUNE 2016 SUSTAINABILITY 2015 SUSTAINABILITY REPORT Measuring VTA s Environmental Progress i

119 6.8.a This document was prepared with the support and guidance of VTA s Sustainability Program Team: Kevin Balak, Real Estate & Joint Development Hassan Basma, Engineering & Transportation Infrastructure Development Ann Calnan, Environmental Programs & Resources Management Tracy Casimiro, Environmental Health & Safety Marc DeLong, Engineering & Transportation Infrastructure Development Casey Emoto, Project Development Inez Evans, Operations Administration Tom Fitzwater, VTA s BART Silicon Valley Program Lyndsey Fujii, Environmental Health & Safety Robert Furber, Environmental Programs & Resources Management Ron Golem, Real Estate & Joint Development Lani Ho, Environmental Programs & Resources Management Karly Hutchinson, Environmental Health & Safety Christina Jaworski, Environmental Programs & Resources Management Kevin Kelley, Purchasing Kathleen Podrasky, Community Engagement Baljit Pannu, Human Resources John Ristow, Planning & Project Development Kris Sabherwal, Rail Engineering Heidi Samuels, Operations Maintenance Rajwinder Sehdev, Engineering & Transportation Infrastructure Development Jesse Soto, Facilities Maintenance Robert Victor, Technology Kendall Whitson, Facilities Maintenance For more information, contact: Environmental Programs and Resources Management 3331 N. First Street, B-2 San Jose, CA (408) vta.org/sustainability

120 6.8.a TABLE OF CONTENTS Executive Summary Background About VTA VTA s Sustainability Program Report Purpose and Scope Purpose Scope Environmental Performance Fuel Electricity, Renewable Energy, and Natural Gas Water Waste and Recycling Accomplishments Accomplishment Area 1: Responding to Drought Emergency Accomplishment Area 2: Reducing Vehicle Emissions Accomplishment Area 3: Retrofitting Existing Facilities Accomplishment Area 4: Promoting Technology over Paper Accomplishment Area 5: Incorporating Sustainability Principles in Project Design. 12 Accomplishment Area 6: Reducing Waste Accomplishment Area 7: Improving Environmental Awareness Accomplishment Area 8: Environmental Management System Past Accomplishments Future Projects

121 6.8.a

122 6.8.a EXECUTIVE SUMMARY Since 2009, VTA has produced an annual sustainability report to summarize its continual efforts to achieve higher environmental performance and meet or exceed sustainability goals. This report is a continuation of this effort and reflects VTA s sustainability achievements for the 2015 calendar year. VTA s Sustainability Program achieved many accomplishments in These accomplishments are grouped into eight key areas as shown below. Overall, the accomplishments in 2015 are estimated to save VTA $356,092 per year. In comparison to the previous reporting year (2014), VTA decreased potable water use by 39% and solid waste by 13%. These savings were achieved by implementing drought response measures and recycling improvements. During this same reporting period, VTA increased fuel use by 6%, grid electricity usage by 5%, and natural gas usage by 17%. These increases are primarily attributed to the continuing restoration of bus and light rail service since it was reduced in 2010, and special events. Funding for the Sustainability Program is dependent on the two-year budget process. Future funding would enable VTA to continue current efforts in the areas listed above, achieve ISO certification for VTA s Environmental Management System, quantify GHG emissions to enable preparation of a Climate Action Plan, and provide electricity data for Low Carbon Fuel Standard credits. ACCOMPLISHMENT AREA SUMMARY Responding to drought emergency Reduced potable water use by 21% compared to 2013 Reducing vehicle emissions Retrofitting existing facilities 20% of revenue fleet is hybrid diesel-electric, installed 5 electric vehicle charging stations, installed electric bike station Replaced over 600 light fixtures, saving $24,775 per year Promoting technology over paper Incorporating sustainability principles in project design Reducing solid waste Improving environmental awareness Environmental Management System Total estimated savings: Reduced imaging devices by 65%, saving $190,437 per year LED lighting, solar, drought tolerant landscaping, using recycled materials Installed solar trash and recycling containers, Reuse Center, community partnership to recycle textiles New stormwater management trainings, continued outreach and annual events Eliminated 277,000 polystyrene cups, saved $140,880, reduced waste by 66% $356,092 per year 1

123 6.8.a BACKGROUND About VTA The Santa Clara Valley Transportation Authority (VTA) is an independent special district that provides bus, light rail, and paratransit services, as well as participates as a funding partner in regional rail service. VTA serves the municipalities of Campbell, Cupertino, Gilroy, Los Altos, Los Altos Hills, Los Gatos, Milpitas, Monte Sereno, Morgan Hill, Mountain View, Palo Alto, San Jose, Santa Clara, Saratoga and Sunnyvale. As Santa Clara County s congestion management agency, VTA is responsible for countywide transportation planning, including congestion management, design and construction of specific highway, pedestrian, and bicycle improvement projects, as well as promotion of transit-oriented development. VTA FACTS Total Ridership FY ,428,492 Service Area square miles Total County Population million Bus Ridership (avg weekday FY 14) ,969 Light Rail Ridership (avg weekday FY 14) ,012 # of Buses # of Light Rail Cars Bus Routes Bus Stops ,832 Light Rail Lines Light Rail Stations Miles of Bus Routes (round trip) ,236 Miles of Light Rail Track Total Operating Budget $380 million Total Capital Program Budget $4.5 billion # of Employees ,100 (70% are in Operations) On Time Performance % (Bus), 85% (Light Rail) VTA s Sustainability Program In 2008, the Sustainability Program was approved by VTA s Board of Directors with the following goal and operating strategies: Goal: to strengthen VTA s commitment to the environment by reducing the consumption of natural resources, the creation of greenhouse gases, and the generation of pollution in the provision of public transportation services. Strategies: educational programs and outreach, transit-oriented development, increasing sustainability at existing facilities, incorporating green building practices in new facilities, developing environmentally preferable procurement strategies, and establishing a means of measuring the progress of the Sustainability Program. VTA became a signatory to the American Public Transportation Association s (APTA) Sustainability Commitment in 2009 and achieved Gold Level Recognition in Through this undertaking, VTA commits to core principles of economic, social, and environmental sustainability and towards a path of continual improvement. 2

124 REPORT PURPOSE AND SCOPE 6.8.a Purpose The purpose of this report is to measure current and future Sustainability Program initiatives. Annual reporting was adopted as part of VTA s Sustainability Program in February The applicable strategy states: Establish benchmarks to measure the progress and performance of VTA s Sustainability Program and report back to the VTA Board of Directors on an annual basis. Among other actions, this report will involve reassessing VTA s fuel, electrical, and water usage on a regular basis. Scope This report measures VTA s environmental performance in providing bus, light rail, and paratransit services. Therefore, the scope of this report extends to transit centers, stations, traction power facilities, and operating divisions. VTA has five main operating divisions. These divisions are grouped as follows: Cerone, Chaboya, and North Divisions are dedicated to the maintenance, cleaning, and fueling of VTA s bus fleet. Guadalupe Division is responsible for all light rail operations and maintenance functions, including major vehicle overhaul, historic trolley maintenance, and light rail operator and maintenance training. River Oaks Division includes the Offices of the General Manager, Board, General Counsel, Public Affairs, Planning and Program Development, Engineering and Transportation Infrastructure Development, Finance and Budget, Operations, Business Services, and System Safety and Security. VTA also participates as a funding partner in regional rail service including Caltrain, Capital Corridor, and the Altamont Corridor Express. These services are not included in the scope of this report. VTA s Sustainability Program Team 3

125 6.8.a

126 ENVIRONMENTAL PERFORMANCE 6.8.a Analyzing VTA s environmental performance requires large amounts of data from a variety of sources. Since 2014, VTA has used a utility management system to keep track of this data and monitor costs. The system helps identify potential issues and opportunities for improvement. Implementation of this system has been instrumental in preparing the 2015 report. This report measures VTA s environmental performance in providing bus, light rail, and paratransit services by comparing usage and costs from the previous reporting year (2014) to the current reporting year (2015). Fuel, electricity, natural gas, water, and solid waste are evaluated. Where historical data is available, the report also compares usage to the baseline year which is 2008, unless noted otherwise. Fuel In 2015, VTA consumed 4.2 million gallons of fuel costing approximately $9,185,000 for the revenue fleet. This is approximately the same as the previous year and 8% higher than the baseline year. The baseline year (2011) was selected based on data available at the time of this report. The rev- enue fleet breakdown by fuel type is 97% diesel, 3% biodiesel, and less than 1% gasoline. In 2015, the non-revenue fleet consumed 82,414 gallons of fuel and the paratransit fleet used 360,130 gallons of gasoline. Fuel use by the nonrevenue fleet was approximately 6% higher than the previous year and 24% higher than the baseline year. Fuel used by paratransit service was approximately 9% higher than the previous year and 10% lower than the baseline year. Electricity, Renewable Energy, and Natural Gas VTA s electricity and natural gas is supplied by Pacific Gas and Electric (PG&E), City of Palo Alto, and Silicon Valley Power (City of Santa Clara). Electricity use includes electricity supplied by solar installations at Cerone, Chaboya, and North Divisions commencing in December Solar electricity is procured through a power purchase agreement, and excess electricity generated is fed into PG&E s power grid in exchange for credit. This credit is used to offset the cost of electricity purchased during times when solar energy is less available due to weather. Figure 1: VTA Fuel Usage from FY2011-FY2015 Figure 2: Total VTA Electricity Usage 4,800,000 Paratransit Non-Revenue Revenue 45,000,000 Solar Traction Power Grid (Excl. TP) Gallons of Fuel 4,600,000 4,400,000 4,200,000 4,000,000 3,800,000 3,600,000 kwh 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 3,400,

127 6.8.a In 2015, total VTA electricity use was 39.8 million kilowatt hours (kwh), enough to power 3,640 homes for one year. This is approximately 5% higher than the previous year, but 3% lower than the 2008 baseline year. The increase in usage kwh Figure 3: 2015 Electricity Use at Operating Divisions Solar Grid 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, ,000 0 Chaboya North Cerone River Oaks over last year is due to additional traction power usage as a result of more frequent service and special events at Levi s Stadium. In 2015, VTA spent $6.4 million on electricity, which is approximately 10% higher than the previous year. Grid electricity use in 2015 was 36.5 million kwh, 5% higher than the previous year, but 11% lower than The 2015 electricity use at VTA s main operating divisions, excluding light rail, is shown in Figure 3. The majority of electricity consumed at all three bus divisions is supplied by solar power. In 2015, as compared to 2014, total electricity use dropped by 1.6% at Cerone, 2.9% at Chaboya, 1.2% at North, and 1.2% at River Oaks. kwh 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, ,000 0 Figure 4: Solar Electricity Production Cerone Chaboya North Figure 4 shows the annual solar electricity generation in kwh from 2012, the first year of production, through Overall, total VTA solar electricity production was 4% higher in 2015, as compared to 2014, due to more favorable weather conditions. In 2015, VTA used 127,874 therms and spent $115,708 on natural gas. Natural gas is used primarily at Chaboya, North and Guadalupe Divisions for heating. River Oaks Division uses a small amount of natural gas for heating water. Therms Figure 5: Natural Gas Usage at Operating Divisions Chaboya North River Oaks Guadalupe 200, , , , , ,000 80,000 60,000 40,000 20, Tons The natural gas use at VTA s operating divisions, excluding Cerone Division which uses propane, is shown in Figure 5. Since the 2008 baseline year, natural gas use decreased by 29%. Usage increased by 17% compared to the previous year, resulting in a cost increase of $5,035. This increase was primarily due to cooler weather in November and December 2015 compared to the same months in

128 6.8.a Gallons Gallons Potable Recycled Drought Allocation 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000, Water Figure 6: Total VTA Water Usage Figure 7: Potable Water Use at VTA s Operating Divisions Chaboya North Cerone River Oaks Guadalupe 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000, VTA s water is supplied by the Great Oaks Water Company, San Jose Water Company, and the cities of San Jose, Santa Clara, Sunnyvale, Milpitas, Morgan Hill, Mountain View, and Palo Alto. Waste and Recycling VTA s solid waste and recycling providers are Republic Services and the City of Mountain View. In 2015, approximately 774 tons of materials (mixed paper, plastic, aluminum, glass, wood, and metal) were recycled and 1,212 tons of waste were collected by VTA s solid waste providers, representing a waste diversion rate of 39%. Overall, VTA has reduced waste by approximately 2% compared to the previous year and 50% compared to the baseline year. Hazardous waste is generated at Chaboya, North, Cerone, and Guadalupe Divisions. Waste streams include steam cleaner and bus wash sump interceptor waste and absorbent pads used to remove oil and grease and clean small spills. In comparison to the 2006 baseline year, hazardous waste decreased by 130 tons. In 2015, these divisions generated 179 tons of waste, a 26% reduction compared to the previous year. The reduction in waste results from fluctuations in maintenance activities, improvements in waste management, and increased employee education and awareness. Potable and recycled water use throughout the entire VTA system is shown in Figure 6. Since the Figure 8: Waste and Recycling 2008 baseline year, total water use has decreased by 9 million gallons, or 17%, which is enough water 3,000 Recycling Waste to fill 14 Olympic-size swimming pools. Since 2014, 2,500 potable water use has decreased by 39%. This decrease is due to efforts to respond to mandatory drought restrictions. Tons 2,000 1,500 Potable water use at VTA s operating divisions is shown in Figure 7. All divisions worked diligently 1, to reduce potable water consumption to meet drought restrictions. The largest decrease, which occurred at Chaboya, is due to the recycled water connection installed in December

129 6.8.a

130 6.8.a ACCOMPLISHMENTS VTA s Sustainability Program achieved many accomplishments in Each accomplishment is a validation of VTA s commitment to increasing environmental performance and efficiency. Eight key accomplishment areas for 2015 are summarized in this section. A summary table of past accomplishments is also provided. Sustainability initiatives are identified by VTA s Sustainability Team and funded through the Sustainability Program. The Team is comprised of employee representatives from across the agency. Since 2007, the Team has met monthly to identify initiatives and report on progress. In addition, approximately five employees allocate a portion of their time to support the Program. Accomplishment Area 1: Responding to Drought Emergency California is currently in its fifth year of severe drought. On April 1, 2015, Governor Brown called for mandatory water reductions averaging 25% BEFORE AFTER throughout the state. In response to local water conditions, the Santa Clara Valley Water District set a water use reduction target of 30% relative to water use in 2013 and placed a restriction on irrigating outdoor landscapes and lawns with potable water to two days per week. In response to water reduction requirements, VTA formed a Water Working Group to develop and implement water conservation strategies. As a result, VTA reduced potable water use by 21% compared to 2013 by taking the following actions: Bus washing was reduced from two times per week to one time per week, if needed. Irrigation use was cut back by 10 to 20% (or completely shut off in some locations) and schedules were adjusted to meet local restrictions. Monthly reporting was conducted to identify high and abnormal use. Leaks were identified and repaired at several light rail stations and park-and-ride lots. Grass at the River Oaks Division was replaced with drought tolerant landscaping. The project was completed in early 2016 and included water wise plants, a drip irrigation system, and mulch. A rebate from the Santa Clara Valley Water District covered approximately half the project cost. Trees that were overly stressed by the drought were replaced with native trees at the River Oaks Division. Cuttings from the felled trees were reused on-site and repurposed as benches or mulch. The bus wash at Chaboya Division was connected to recycled water, reducing potable water consumption by 90%. 9

131 6.8.a Funding for the charging stations was provided by a grant from the Bay Area Air Quality Management District. VTA purchased and installed four electric bicycles for use by VTA employees around the River Oaks campus. The chargers are connected to small solar panels, and the bikes carry enough energy to travel approximately 20 miles per charge. Accomplishment Area 3: Retrofitting Existing Facilities Accomplishment Area 2: Reducing Vehicle Emissions Greenhouse gas (GHG) emissions are emitted, in part, through the burning of fossil fuel. Approximately 79% of VTA s GHG emissions during 2015 were related to the operation of the revenue fleet. VTA seeks to reduce GHG emissions that contribute to climate change by greening the agency s fleet, adding electric vehicle charging stations, and promoting bicycling. Accomplishments for this reporting year include: In 2015, diesel-electric hybrids made up 20% of VTA s revenue fleet. Currently, VTA is applying for funding to purchase electric buses as part of a pilot program. When a revenue or non-revenue vehicle exceeds its useful lifespan, VTA replaces it with a fuel efficient vehicle according to the agency s Sustainable Fleet Policy. Five electric vehicle charging stations were installed at the Eastridge Transit Center. VTA continues to replace fluorescent and high pressure sodium light fixtures with LED fixtures. The benefits of LED lighting include: lower wattage and energy use, better quality lighting, and lower maintenance costs. Achievements for this reporting year include: A total of 140 light fixtures were replaced at eight light rail station platforms (Baypointe, Gish, Great America, Lick Mill, Metro, Mountain View, Old Ironsides, and Tasman). These retrofits are estimated to save $9,400 per year with return on investment period of 3.4 years. A total of 506 light fixtures were replaced at six light rail station platforms in the downtown transit mall (northbound and southbound Santa Clara, St. James, and San Antonio). The retrofits included replacing watt high pressure sodium lights with 65-watt LED fixtures and watt fluorescent bulbs with 7-watt LED bulbs. These retrofits are estimated to save $15,400 per year with return on investment period of 2.4 years. In addition, several improvements were made to the River Oaks Division. The cafeteria was remodeled with flooring certified by the SCS Global Services, gently used chairs purchased 10

132 6.8.a A Print-Copy-Scan Policy was approved to reduce the consumption of paper and promote the use of technology in lieu of printing or copying. Pursuant to this Policy, black and white duplex was set to the agency-wide default print and copy setting. Duplex usage has increased by 10-15% as a result. from Yahoo! Inc., and coffee and side tables built from wood pallets. Piping and other necessary components were installed on the roofs to allow for the use of natural gas for heating. HVAC units were replaced with more energy efficient models that allow more flexibility to control temperature. LED lighting and ceiling tiles, made with recycled content, continue to be installed as needed. Accomplishment Area 4: Promoting Technology over Paper Over the last few years, VTA has been working towards reducing the consumption of office paper and implementing paperless technologies. In 2010, VTA performed an assessment of 673 imaging devices. The assessment led to the decision to consolidate outdated stand-alone fax machines, printers, scanners, and copiers into energy efficient multi-functional devices. In 2014, VTA initiated the Managed Document Services Project to promote the use multi-functional devices, scanning, and other technologies over printing and copying. As a result, the total device count was reduced by 65% which equates to an estimated cost savings in consumables and electricity of $190,400 per year. Select departments within VTA converted to electronic timekeeping system. The etime system automates timekeeping workflow, thereby eliminating printed time cards, leave request forms, and timekeeper reports. The estimated paper savings includes 134,920 sheets or 1,349 pounds per year. The Copy Center improved their online ordering system, and held an employee lunchand-learn to promote the use of Copy Center services and increase efficient, smart printing. The Copy Center continues to accept scrap paper which it turns into notepads. Maps of conference rooms with audio-visual resources were developed and posted on the employee intranet. These resources enable paperless meetings by displaying documents on-screen. Human Resources reduced paper by updating forms to be more concise, eliminating triplicate forms, sending offer letters and announcement memos electronically, and conducting application and open enrollment processes electronically. To further promote the use of technology in lieu of printing or copying, VTA took the following actions in 2015: 11

133 6.8.a Accomplishment Area 5: Incorporating Sustainability Principles in Project Design Sustainability principles are integrated into the design of capital projects when feasible. Sustainable design features for VTA s BART Silicon Valley Berryessa Extension Project include LED lighting, skylights, photovoltaic parking structures, variable speed escalators, droughttolerant landscaping, and water efficient fixtures. Tire derived aggregate (made out of shredded tires) is being installed under the BART tracks to reduce vibration. Sustainable design features for the Santa Clara- Alum Rock Bus Rapid Transit Project include the use of LED lighting, rubberized asphalt, reclaimed asphalt pavement for subbase material, and Cold In-Place Recycling (CIPR) for pavement rehabilitation. CIPR is an on-site method of applying recycled asphalt. It consists of grinding the existing asphalt, mixing the ground material with a recycling agent on-site, and applying it to the roadway. The process eliminates the need to transport old asphalt from the site to a recycling plant and back again for use on the job site, thereby reducing emissions. Accomplishment Area 6: Reducing Waste A pilot program to replace traditional open-air trash cans with solar-powered trash and recycling containers was initiated in The hightech units hold five times the amount of waste due to solar powered compaction. Staff is notified electronically when the units need to be emptied. Additional Big Belly units were installed at Mountain View and Tasman Light Rail Stations in October A space for VTA employees to freely exchange office supplies was created in The Reuse Center is a simple, sustainable way to share and reuse supplies. Before discarding perfectly usable items, employees are encouraged to bring them to the Reuse Center. Before buying new, employees can check for existing supplies at the Reuse Center. This cycle reduces waste at VTA by reusing what we have. VTA partners with agencies like the Green Education Foundation (GEF) and Goodwill to provide a convenient way for people to recycle their used household items and textiles. In 2015, VTA partnered with GEF to install Neighborhood Donation Recycling Stations at three park-andride-lots. The stations are made from recycled shipping containers, which have been painted and retrofitted with solar to power LED lights, a wireless monitoring system, and touchscreen display. Proceeds from textile recycling are used to provide environmental curriculum and resources to K-12 students and teachers. Accomplishment Area 7: Improving Environmental Awareness VTA implemented a stormwater management program to comply with Municipal Separate Storm Sewer System (MS4s) permit requirements. The focus of the program is to increase awareness of Best Management Practices to prevent pollution from stormwater runoff. Stormwater runoff occurs when excessive water from irrigation, car washing and other sources carries litter, pesticides, oil, and other pollutants into the storm drain system, which then flow directly to local 12

134 6.8.a waterways. Employee trainings were conducted agency wide. Other outreach efforts included posters, surveys, and posting on VTA s website. Drain inlets on VTA property were identified, mapped, and labeled with permanent medallions. In addition, VTA continued its efforts to share knowledge and build awareness of environmental issues. Ongoing outreach efforts include presentations at New Employee Orientations, distribution of Spare the Air Alert messages, posting articles on the employee intranet, and planning events like Earth Day and Bike to Work Day. VTA began implementing a pilot EMS program at the Cerone Division in An EMS Core Team was established to manage the documentation and implementation of the program. The EMS relies on a Plan-Do-Check-Act model, as follows: Plan: The EMS Core Team evaluated 77 activities at Cerone that may impact the environment and created action plans to address four impacts that they identified as significant. These impacts were diesel fuel, greenhouse gas emissions, polystyrene, and solid waste absorbents. Do: Action plans included tasks and responsibilities assigned to Cerone staff for meeting EMS goals. Work instructions identified best practices for each of the significant impacts identified in the planning stage. Training was provided to 140 maintenance employees. Accomplishment Area 8: Environmental Management System VTA graduated from the Federal Transit Administration (FTA) Environmental Management System Institute and received an overall score of 99% on its final audit. This 18-month program is designed to help public transportation agencies develop and implement an Environmental Management System (EMS), in accordance with the Standard of the International Organization for Standardization (ISO). VTA was one of ten agencies across the country selected by FTA to participate. Check: Maintenance activities, such as waste disposal, were monitored and measured by the EMS Core Team. Internal and external auditors were tasked with ensuring that procedures were followed according to ISO 14001:2004. Quarterly management review meetings provided opportunities for senior management to ask questions to determine the progress and success of the program. Act: Accomplishments from the past year include 277,000 polystyrene cups eliminated, $140,880 avoided as a result of an in-house diesel particulate filter cleaning program, and 66% reduction in disposal of solid waste absorbents. As the EMS addresses a specific set of impacts at a given time, the EMS Core Team is evaluating new significant impacts to address in the future. 13

135 6.8.a Past Accomplishments Past accomplishments since the adoption of VTA s Sustainability Program are listed in this table: PAST ACCOMPLISHMENT Adopted a Sustainable Landscaping Policy Installed 2.1 megawatts of solar at Cerone, Chaboya, and North Divisions Turned off auxiliary power for parked trains DESCRIPTION Requires use of native and/or drought-tolerant planting on VTA property Power Purchase Agreement. Estimated to save $2.7 million over 20 years Estimated to save $723,000 per year Installed sub meter at Guadalupe Division Participate in PG&E Automated Demand Response Program (ongoing) Participated in pilot solar project at Cerone Division Completed energy audits of facilities Replaced florescent and metal halide light fixtures and installed occupancy sensors Replaced bottled water units Identified $107,000 overcharges in PG&E billing Voluntarily reduce electricity usage during periods of high demand Partnered with local technology company to install pilot solar project at no cost PG&E provided audits at no cost Over 3,000 indoor light fixtures replaced. Occupancy sensors installed in conference rooms, break rooms, and warehouse Switched from standing bottled water coolers to filtration units Completed indoor and outdoor water use surveys Replaced bathroom fixtures with low-flow equipment Installed automatic shut-off flow sensors at five park & ride lots Installed weather-based irrigation controllers at 21 facilities Replaced sprinkler nozzles at four park & ride lots Funded project to update bike lockers Purchased 15 fuel-efficient hybrids for non-revenue fleet Santa Clara Valley Water District provided water audits at no cost Installed high efficiency toilets, low flow shower heads, and aerators in operating divisions Sensors automatically shut off flow to avoid high water usage. Installed at Great Mall/Main, Penitencia Creek, I-880/Milpitas, Hostetter, Cerone, and Almaden Manage irrigation and configure watering schedules remotely. Estimated to save $37,000 per year Sprinklers replaced at Penitencia Creek, Hostetter, Great Mall/Main, and River Oaks Converted 110 bike lockers across 12 transit centers to utilize BikeLink smart cards to enable on-demand bike parking Retired older vehicles Controlled weeds and grasses with natural grazing Goats and sheep grazed at Cerone Division from 2009 to

136 6.8.a Future Projects There is no dedicated source of funds for the Sustainability Program. Funding is dependent on the two-year budget process. In FY 16/17, VTA budgeted $1 million for the program. Future funding would enable VTA to continue current and planned projects, as follows: Continue drought response efforts and consider future projects to reduce potable water consumption, including connecting to recycled water sources. Continue efforts to green and diversify VTA s fleet. Promote the use of technology in lieu of printing and copying by converting to an electronic invoicing and archiving process. Continue to retrofit existing facilities, incorporate sustainability features into the design of new projects, and reduce waste. Achieve ISO 14001:2015 Certification for the Cerone Division. Quantify GHG emissions, set formal reduction targets, and prepare a Climate Action Plan. Provide data for the Low Carbon Fuel Standard (LCFS) which seeks to put California on the path to meet its goal of reducing greenhouse gas emissions to 1990 levels by the year Under the LCFS, VTA is eligible to receive credits for the light rail system. These credits are based on electrical usage and can be sold to generate additional revenue. 15

137 6.8.a Santa Clara Valley Transportation Authority 3331 North First Street San Jose, CA vta.org/sustainability (408) TTY (408)

138 6.9 Date: July 13, 2016 Current Meeting: August 4, 2016 Board Meeting: August 4, 2016 BOARD MEMORANDUM TO: THROUGH: FROM: SUBJECT: Santa Clara Valley Transportation Authority Board of Directors General Manager, Nuria I. Fernandez Director of Planning and Program Development, John Ristow Programmed Project Monitoring Report - Quarterly Report FOR INFORMATION ONLY Every quarter, the Programmed Projects Quarterly Monitoring Report is presented to the Technical Advisory Committee (TAC), Policy Advisory Committee (PAC) and the VTA Board of Directors. The purpose of the report is to assist the VTA Board, committees, staff and project sponsors in tracking progress of projects funded through programming actions of the VTA Board. Additionally, the report helps to ensure implementing agencies comply with Metropolitan Transportation Commission's (MTC) Regional Project Funding Delivery Policy and do not lose any funds due to missing a federal or state funding deadline. The Programmed Projects Quarterly Monitoring Report for January-March 2016 is attached for review. This report provides the latest status on discretionary funded projects. A project summary sheet highlighting status of projects with funds expiring in FY2015/16 is also attached. The project summary sheet identifies projects in three categories: Red: Projects at the risk of losing funds due to delivery difficulties. Yellow: Projects that need extra attention or will risk running into difficulties. Green: Projects are progressing smoothly. This quarter, the Monterey Road Preservation project is labeled yellow. Morgan Hill is performing an archeological study on Monterey Road which is delaying the delivery of the project. The next Programmed Projects Quarterly Monitoring Report will cover the period for April-June Prepared By: Bill Hough Memo No North First Street San Jose, CA Administration Customer Service

139 Attachment A: Status summary of FY2015/16 Projects Red = Project at risk of losing funds due to delivery difficulties. Yellow = Project may need extra attention or will risk running into difficulties. Green = Project is progressing smoothly. Federal/State Status Funds for Sponsor Project Title Project # 2015/16 Comments Los Altos Road Preservation on Grant Road SCL $312,000 Awarded April 12. Morgan Hill Monterey Road Preservation SCL $1,379,000 City performing an archeological study. Mountain View Castro Street Complete Streets SCL $840,000 Obligated January 11, Mountain View Various Road Preservation & Bike lanes SCL $1,166,000 Obligated 12/14/2015. Palo Alto Palo Alto Various Street Resurfacing & Streetscape SCL $956,000 Awarded. San Jose Downtown San Jose Bike Lanes and De-Couplet SCL $1,500,000 PE obligated. Scope change pending. San Jose San Jose Citywide Pavement SCL $11,003,000 ` Obligated 05/01/2015. San Jose St. Johns Bikeway and Pedestrian Improvements SCL $1,185,000 E-76 package submitted. San Jose San Jose Smart Intersections Program SCL $789,200 Obligated 3/24/2016 San Jose San Jose Transportation Demand Management SCL $1,500,000 Obligated 1/25/2016. Green Yellow Red Page a

140 Programmed Projects Quarterly Monitoring Report January-March 2016 Sponsor: City of Campbell Project Title: Campbell Avenue Portals Bike/Ped Improvements 1 of 2 Project No SCL Fund Source CMAQ $4,142 Local $588 Project Description Widen north and south sides to include a bicycle lane; install new sidewalk; replace existing abutment walls with new retaining and wing walls. Project Milestone Field Review ENV Funds ($000) $0 Programmed Year Schedule Start mm/yyyy End mm/yyyy complete Under construction. Comments Design $ complete Manager Name Fred Ho ROW $0 Phone/Fax fredh@cityofcampbell.com Construction Total $4,200 $4, E-76 Const (sub/app) 10/2014 9/2016 2/2014 4/2/2014 Funding Deadline awarded Last Updated 4/21/2016 Last Invoice (sub/app) 8/2015 Sponsor: City of Campbell Project Title: Virginia Avenue Sidewalks 2 Project No of SCL Fund Source CMAQ $708 Local $92 Project Description On Virginia Avenue between Budd Avenue and Hacienda Avenue, add pedestrian sidewalks, curb, gutter, and curb ramps. Project Milestone Field Review ENV Funds ($000) $0 Programmed Year Schedule Start mm/yyyy End mm/yyyy complete complete Comments The project is being advertised. Bid opening is first week of May. Award typically three to four weeks after bid opening pending DBE check and due diligence. Design $ complete Manager Name Fred Ho ROW $0 N.A. N.A. Phone/Fax fredh@cityofcampbell.com Construction Total $708 $ E-76 Const (sub/app) 6/ /2016 2/2015 3/19/2015 Funding obligated Deadline Last Updated 4/20/2016 Last Invoice (sub/app) 8/31/2015 Tuesday, May 17, :30:42 PM City of Campbell Page 1 of b

141 Programmed Projects Quarterly Monitoring Report January-March of 2 Project No SCL Fund Source CMAQ $1,706 Local $223 Sponsor: City of Gilroy Project Description Project will convert existing unpaved creek-side maintenance road closed to the public to a multi-use public trail along the New Ronan Channel. Project Milestone Field Review Project Title: Funds ($000) New Ronan Channel and Lions Creek Trail-BEP G02 Programmed Year Schedule Start mm/yyyy End mm/yyyy 10/2010 ENV $ /2011 7/2015 Comments City submitted the E-76 request to Caltrans. Design $0 5/ /2015 Manager Name Henry Servin/Laura Ley ROW $0 4/2016 4/2016 Phone/Fax Henry.Servin@cityofgilroy.org Construction Total $1,169 $1, E-76 Const (sub/app) 10/2016 9/2017 4/2016 Funding Deadline 11/1/2016 Last Updated 5/10/1016 Last Invoice (sub/app) 5/10/2016 Sponsor: City of Gilroy Project Title: Eigleberry Street Resurfacing 2 Project No of SCL Fund Source CMAQ $808 Local $239 Project Description In Gilroy: resurface roadway on Eigleberry St between 1st and 10th. Provide complete streets treatment including bike lanes- OBAG guarantee funds. Project Milestone Field Review ENV Funds ($000) $239 Schedule Programmed Year Start mm/yyyy 2013 End mm/yyyy complete complete Under construction. Comments Design $0 Manager Name Henry Servin/Ian King ROW $0 Phone/Fax henry.servin@ci.gilroy.ca.us Construction Total $808 $1, E-76 Const (sub/app) 5/2015 6/2016 5/ /2014 Funding awarded Deadline Last Updated 5/16/2016 Last Invoice (sub/app) 12/22/2015 Tuesday, May 17, :30:42 PM City of Gilroy Page 2 of b

142 Programmed Projects Quarterly Monitoring Report January-March 2016 Sponsor: City of Los Altos Project Title: Road Preservation on Grant Road 1 of 1 Project No SCL Fund Source Local $76 STP $312 Project Description In Los Altos: Resurface Grant Road from Grant to Homestead and improve ADA ramps per current requirements. Project Milestone Field Review ENV Funds ($000) $0 Programmed Year Schedule Start mm/yyyy End mm/yyyy complete complete Awarded on April 12th. Comments Design $ complete Manager Name Cedric Novenario ROW $0 Phone/Fax cnovenario@losaltosca.gov Construction Total $353 $ E-76 Const (sub/app) 5/ /2016 8/ /2015 Funding Deadline awarded Last Updated 5/13/2016 Last Invoice (sub/app) Tuesday, May 17, :30:42 PM City of Los Altos Page 3 of b

143 Programmed Projects Quarterly Monitoring Report January-March 2016 Sponsor: City of Morgan Hill Project Title: Monterey Road Preservation 1 Project No of SCL Fund Source Local $332 STP $1379 Project Description Resurfacing of Monterey Road between East Dunne Avenue and East Middle Avenue Project Milestone Field Review Funds ($000) Programmed Year Schedule Start mm/yyyy End mm/yyyy 10/2015 ENV $ /2016 Comments City performing an archeological study. City has Area of Potential Effects maps for review and submittal to Caltrans. Design $ /2015 7/2015 Manager Name Scott Creer ROW $0 n.a. 7/2016 Phone/Fax scott.creer@morganhill.ca.gov Construction Total $1,558 $1, E-76 Const (sub/app) 12/2016 7/ /2015 1/2016 Funding 11/1/2016 Deadline Last Updated 4/25/2016 Last Invoice (sub/app) Tuesday, May 17, :30:42 PM City of Morgan Hill Page 4 of b

144 Programmed Projects Quarterly Monitoring Report January-March 2016 Sponsor: City of Mountain View Project Title: Castro Street Complete Streets 1 of 2 Project No SCL Fund Source CMAQ $840 Local $110 Project Description Implement complete street and "road diet" on Castro Street between El Camino Real and Miramonte Avenue. Project Milestone Field Review ENV Funds ($000) $0 Programmed Year 2015 Schedule Start mm/yyyy End mm/yyyy complete complete Comments City anticipates awarding the contract by mid June. Design $ complete Manager Name Sayed Fakhry ROW $0 Phone/Fax sayed.fakhry@mountainview.gov Construction Total $950 $ E-76 Const (sub/app) 7/ / /30/2015 1/2016 Funding Deadline obligated Last Updated 5/10/2016 Last Invoice (sub/app) Sponsor: City of Mountain View Project Title: Various Road Preservation & Bike lanes 2 Project No of SCL Fund Source Local $412 STP $1,166 Project Description In Mountain View: resurface Rengstorff/Old Middlefield/Charleston Roads. Project Milestone Field Review ENV Funds ($000) $0 Schedule Programmed Year Start mm/yyyy End mm/yyyy complete complete Comments City plans to award in July Design $ complete Manager Name Quan Tran ROW $0 Phone/Fax quan.tran@mountainview.gov Construction Total $1,318 $1, E-76 Const (sub/app) 7/ / /29/2015 1/2016 Funding obligated Deadline Last Updated 5/10/2016 Last Invoice (sub/app) Tuesday, May 17, :30:42 PM City of Mountain View Page 5 of b

145 Programmed Projects Quarterly Monitoring Report January-March 2016 Sponsor: 1 Project No of SCL Fund Source CMAQ $1,000 Local $502 City of Palo Alto Project Description Reconstruct the sidewalk along the south side of Arastradero Road between the Hetch Hetchy Los Altos Pathway and Miranda Avenue to a multiuse trail. Project Milestone Field Review Project Title: Funds ($000) Arastradero Road Schoolscape/Multiuse Trail Schedule Programmed Year Start mm/yyyy End mm/yyyy 5/2016 ENV $ /2016 7/2016 Comments -Submitted PES/NEPA package in February Field Review Held in May Design $0 1/2016 2/2017 Manager Name Holly Boyd ROW $0 Phone/Fax holly.boyd@cityofpaloalto.org Construction Total $1,306 $1, E-76 Const (sub/app) 6/2017 2/2018 2/2017 3/2017 Funding 11/1/2016 Deadline Last Updated 5/5/2016 Last Invoice (sub/app) Sponsor: 2 Project No of SCL Fund Source Local $8,650 STIP 4,350 City of Palo Alto Project Description In Palo Alto, provide a year round ped crossing of Highway 101 to replace the existing Lefkowitz tunnel, which is a seasonal underpass subject to repeated and unanticipated closures that limit its use to less than half the year. Project Milestone Field Review Design Project Title: Funds ($000) Adobe Creek / Highway 101 Bicycle Pedestrian Bridge Programmed Year 2014 Schedule Start mm/yyyy End mm/yyyy ENV $1, / /2017 $1,500 6/ /2018 Comments Contract award on May 23, Design team will start design work in May Manager Name Elizabeth Ames ROW $ /2018 9/2018 Phone/Fax elizabeth.ames@cityofpaloalto.or g Construction Total $10,000 $13, E-76 Const (sub/app) Last Invoice (sub/app) 1/2019 4/2020 9/ /2018 Funding 11/1/2016 Deadline Last Updated 5/17/2016 Tuesday, May 17, :30:42 PM City of Palo Alto Page 6 of b

146 Programmed Projects Quarterly Monitoring Report January-March 2016 Sponsor: City of Palo Alto Project Title: Various Street Resurfacing & Streetscape 3 of 3 Project No SCL Fund Source Local $135 STP $956 Project Description Street resurfacing for various streets in Palo Alto. Project Milestone Field Review Funds ($000) Programmed Year Schedule Start mm/yyyy End mm/yyyy 9/2014 ENV $ /2014 1/2015 Under construction. Comments Design $0 Manager Name Holly Boyd ROW $0 Phone/Fax holly.boyd@cityofpaloalto.org Construction Total $1,081 $1, E-76 Const (sub/app) 5/2016 9/2016 8/ /2015 Funding Deadline awarded Last Updated 5/5/2016 Last Invoice (sub/app) Tuesday, May 17, :30:42 PM City of Palo Alto Page 7 of b

147 Programmed Projects Quarterly Monitoring Report January-March 2016 Sponsor: City of San Jose Project Title: Almaden Expressway Pedestrian Bridge 1 Project No of SCL Fund Source Earmark $496 Project Description Almaden Expressway, near Coleman Rd; Construct a 360 ft. Ped Bridge over Almaden Expressway to connect nearby trails and to the Almaden Light Rail Station. Project Milestone Field Review ENV Funds ($000) $113 Programmed Year 07/08 Schedule Start mm/yyyy End mm/yyyy complete Comments City staff continues to wait for a response from Caltrans Local Assistance and Sacramento Office. They believe that they have supplied all requested data and wish to confirm that this project is to be dropped. TIP updated to reflect no further funding. Design $239 07/08 01/ /2011 Manager Name Yves Zsutty ROW $0 Phone/Fax (408) yves.zsutty@sanjoseca.gov Construction Total $0 $352 E-76 Const (sub/app) 4/17/2012 Funding no expiration Deadline Last Updated 5/17/2016 Last Invoice (sub/app) 5/2013 Sponsor: City of San Jose Project Title: Bay Trail Reach 9 & 9B 2 Project No of SCL Fund Source Earmark $675 Local $7,863 Manager Name Yves Zsutty Phone/Fax (408) Project Description Preparation of CON and ENV documents for 1.2 miles of trail, a pedestrian bridge, and underpass with safety and enhancement improvements. yves.zsutty@sanjoseca.gov Project Milestone Field Review ENV Design ROW Construction Total Funds ($000) $815 $0 $63 $7,660 $8,538 Programmed Year 06/07 08/09 08/09 13/14 E-76 Const (sub/app) Schedule Start mm/yyyy End mm/yyyy complete 3/ /2013 Comments NEPA completed for both reaches. Reach 9 (1.1- mile) trail is designed to the 95% stage. Reach 9B (Ped Bridge) is designed to the 35% stage. Continuing to seek large grants and funding opportunities. Working with private developer adjacent to project site to insure no future obstructions. Private development has been approved near south footing of bridge and includes grading to support future bridge development. City investigating federal TIFIA loan program for Funding no expiration Deadline Last Updated 5/17/2016 Last Invoice (sub/app) 8/2010 Tuesday, May 17, :30:42 PM City of San Jose Page 8 of b

148 Programmed Projects Quarterly Monitoring Report January-March 2016 Sponsor: City of San Jose Project Title: Coyote Creek Trail 3 Project No of SCL Fund Source Earmark $3,674 Local $5,095 RTP-LRP $6,000 Project Description Master Plan, design of 9.8 miles transportation trail, including safety and improvements between SR 237 and Story Rd. Project Milestone Field Review ENV Design Funds ($000) $572 $1,077 Programmed Year 08/09 08/09 Schedule Start mm/yyyy 9/2008 End mm/yyyy complete Comments Construction documents completed for trail between Story Road and I-280. City Council memo approved memo to support execution of maintenance agreement with Caltrans. Expected to start CON Fall ATP funded project from Mabury to Empire included as part of this TIP entry. Manager Name Yves Zsutty ROW $0 Phone/Fax (408) yves.zsutty@sanjoseca.gov Construction Total $13,120 $14,769 13/14 E-76 Const (sub/app) 10/ /2017 4/10/2012 Funding No expiration Deadline Last Updated 5/17/2016 Last Invoice (sub/app) 3/2015 Sponsor: 4 Project No of SCL Fund Source CMAQ $1,500 Dev Fees $18,000 Local $315 City of San Jose Project Description In San Jose: Almaden/Vine couplet conversion Project Milestone Field Review Design Project Title: Funds ($000) Downtown San Jose Bike Lanes and De-couplet Schedule Programmed Year Start mm/yyyy End mm/yyyy 1/2016 ENV $1, /2016 9/2016 $0 1/ /2016 Comments Received E76 for PE in January Currently revising project scope. Phase 1 will retain one-way operations, instead of decoupling. Expecting to finish design by end of Manager Name Beza Kedida ROW $5, Phone/Fax beza.kedida@sanjoseca.gov Construction Total $13,000 $19, E-76 Const (sub/app) 11/ /2015 Funding PE obligated Deadline Last Updated 5/17/2016 Last Invoice (sub/app) Tuesday, May 17, :30:42 PM City of San Jose Page 9 of b

149 Programmed Projects Quarterly Monitoring Report January-March 2016 Sponsor: 5 Project No of SCL Fund Source CMAQ $1,200 Local $350 RTP-LRP $3,000 City of San Jose Project Description Develop construction drawings for trail improvements Project Milestone Field Review Project Title: Funds ($000) Los Gatos Creek Reach 5 Bridge Crossings Programmed Year Schedule Start mm/yyyy End mm/yyyy ENV $1, /2011 6/2013 Comments Caltrain has provided 100% plans for review. City is negotiating cost sharing agreement with Caltrain for conduit and surface improvements that will support future trail underpass. City has funds to prepare plans to 65% stage only. Design $0 TBD Manager Name Yves Zsutty ROW $ TBD Phone/Fax yves.zsutty@sanjoseca.gov Construction Total $3,000 $4, E-76 Const (sub/app) TBD 2/23/2012 Funding CMAQ PE obligated Deadline Last Updated 5/17/2016 Last Invoice (sub/app) 7/2015 Sponsor: City of San Jose Project Title: Park Avenue Multi-Modal Improvements 6 Project No of SCL Fund Source Local $364 STIP-TE $1,456 Manager Name Project Description In San Jose: Improve pedestrian and bicycle facilities along Park Avenue between Hedding and Montgomery Streets. Beza Kedida Project Milestone Field Review ENV Design ROW Funds ($000) $137 $69 $31 Schedule Programmed Year Start mm/yyyy 2012/ End mm/yyyy complete complete Comments Bid opened 3/26/2015. City only obtained one nonresponsive bid. City then re-bid the project but received no bids. City has re-bit project again. CTC approved 12-month time extension request on 10/21/2015. Project will be re-advertised in early Phone/Fax beza.kedida@sanjoseca.gov Construction Total $1,583 $1, E-76 Const (sub/app) 4/2016 9/ /22/2015 1/2016 Funding obligated Deadline Last Updated 5/16/2016 Last Invoice (sub/app) Tuesday, May 17, :30:42 PM City of San Jose Page 10 of b

150 Programmed Projects Quarterly Monitoring Report January-March 2016 Sponsor: City of San Jose Project Title: San Jose Citywide Bikeway Program 7 Project No of SCL Fund Source CMAQ $1,150 Local $306 Project Description Complete the connection between Scott Street and Auzerais Avenue, providing a functional cross-town bikeway to San Carlos Street all the way into downtown. Project Milestone Field Review ENV Funds ($000) $120 Schedule Programmed Year Start mm/yyyy 2014 End mm/yyyy complete CON moved to FY2017. Comments Scope modified; design work in process. Design $ /2015 7/2016 Manager Name John Brazil ROW $ Phone/Fax john.brazil@sanjoseca.gov Construction Total $1,299 $1, E-76 Const (sub/app) 4/ / / /2016 Funding 11/1/2016 Deadline Last Updated 5/17/2016 Last Invoice (sub/app) 8 Project No of SCL Fund Source Local $1,572 STP $11,531 Sponsor: City of San Jose Project Description Rehabilitate and resurface approx. 24 miles of arterial streets. Project Milestone Field Review Project Title: Funds ($000) San Jose Citywide Pavement Management Program Schedule Programmed Year Start mm/yyyy End mm/yyyy 8/2014 ENV $ /2014 6/2014 Obligated 05/01/2015. Under construction. Comments Design $ /2014 4/2015 Manager Name Emil Collado ROW $0 Phone/Fax emil.collado@sanjoseca.gov Construction Total $12,856 $13, E-76 Const (sub/app) 7/2015 7/2016 2/2015 5/2015 Funding obligated Deadline Last Updated 5/11/2016 Last Invoice (sub/app) 11/17/2015 Tuesday, May 17, :30:42 PM City of San Jose Page 11 of b

151 Programmed Projects Quarterly Monitoring Report January-March 2016 Sponsor: City of San Jose Project Title: San Jose Citywide SRTS Program 9 Project No of SCL Fund Source CMAQ $1,150 Local $157 Project Description Implement walking route improvements around schools. Project Milestone Field Review Funds ($000) Programmed Year Schedule Start mm/yyyy End mm/yyyy ENV $ / /2016 Comments PE obligated-con moved to Conducting walk audits. Planning to submit RFA by Nov Design $0 7/2015 6/2016 Manager Name Tina Smith ROW $0 Phone/Fax tina.smith@sanjoseca.gov Construction Total $1,133 $1, E-76 Const (sub/app) 1/2017 6/ /1/ /1/2016 Funding 11/1/2016 Deadline Last Updated 5/17/2016 Last Invoice (sub/app) 2/3/2016 Sponsor: City of San Jose Project Title: Jackson Ave Bicycle and Pedestrian Improvements 10 Project No of SCL Fund Source CMAQ $1,500 Local $399 Project Description Construct pedestrian safety and transit access enhancements along Jackson Avenue. Project Milestone Field Review ENV Funds ($000) $95 Schedule Programmed Year Start mm/yyyy 2014 End mm/yyyy complete Comments City planning to award in Summer Design $ /2014 6/2015 Manager Name Beza Kedida ROW $ Phone/Fax beza.kedida@sanjoseca.gov Construction Total $1,139 $1, E-76 Const (sub/app) 4/2016 7/2016 2/2015 4/2015 Funding obligated Deadline Last Updated 5/17/2016 Last Invoice (sub/app) 10/8/2015 Tuesday, May 17, :30:42 PM City of San Jose Page 12 of b

152 Programmed Projects Quarterly Monitoring Report January-March 2016 Sponsor: 11 Project No of SCL Fund Source CMAQ $3,000 Local $798 Manager Name City of San Jose Project Description Traffic signal controlled crossings will be implemented at 6 key intersections. Ken Jung Project Milestone Field Review Design ROW Project Title: Funds ($000) San Jose Pedestrian Oriented Traffic Safety Signals Schedule Programmed Year Start mm/yyyy 2014 End mm/yyyy ENV $1, /2014 7/2014 $0 $0 4/2014 6/2014 Comments 2015 CON funds obligated 5/1/2015. Remaining 800,000 CON funds in First unit of 2 signals awarded. Second unit of 2 signals to be awarded April Submitted RFA for CON Phase 2 on 5/6/2016. Phone/Fax ken.jung@sanjoseca.gov Construction Total $1,899 $3, /17 E-76 Const (sub/app) 1/ / /2016 2/2017 Funding 11/1/2016 Deadline Last Updated 5/17/2016 Last Invoice (sub/app) 2/10/2016 Sponsor: City of San Jose Project Title: St. John Street Bikeway and Pedestrian Improvements 12 Project No of SCL Fund Source CMAQ $1,185 Local $315 STIP-TE $1,500 Project Description In San Jose: fill bikeway and sidewalk gaps on St. John Street. Project Milestone Field Review ENV Funds ($000) $478 Programmed Year 2014 Schedule Start mm/yyyy End mm/yyyy complete Comments E-76 package submitted. CTC vote scheduled for May. Design $ complete Manager Name Beza Kedida ROW $ Phone/Fax beza.kedida@sanjoseca.gov Construction Total $2,898 $3, E-76 Const (sub/app) 7/2016 1/ /2015 1/2016 Funding 11/1/2016 Deadline Last Updated 5/17/2016 Last Invoice (sub/app) 3/13/2015 Tuesday, May 17, :30:42 PM City of San Jose Page 13 of b

153 Programmed Projects Quarterly Monitoring Report January-March 2016 Sponsor: City of San Jose Project Title: The Alameda Grand Blvd Phase 2 13 of 16 Project No SCL Fund Source CMAQ $3,150 Local $1,280 Project Description Extends work on The Alameda that enhances pedestrian and vehicle safety in accordance with the Grand Boulevard Initiative. Project Milestone Field Review ENV Funds ($000) $831 Programmed Year 2014 Schedule Start mm/yyyy End mm/yyyy complete Comments City will advertise this project in Summer Design $ complete Manager Name Beza Kedida ROW $ Phone/Fax beza.kedida@sanjoseca.gov Construction Total $3,559 $4, E-76 Const (sub/app) 7/ /2016 2/2015 4/2015 Funding Deadline obligated Last Updated 5/17/2016 Last Invoice (sub/app) 3/25/2016 Sponsor: City of San Jose Project Title: East San Jose Bikeways 14 Project No of SCL Fund Source CMAQ $2,000 Local $532 Project Description Make improvements to the bikeway network including the installation of new bikeways, traffic calming features, public bike racks, bike-friendly signal detection and pavement markings. Project Milestone Field Review ENV Funds ($000) $75 Schedule Programmed Year Start mm/yyyy 2014 End mm/yyyy 3/2014 Comments City currently developing PS&E package. Design $ / /2016 Manager Name John Brazil ROW $ Phone/Fax john.brazil@sanjoseca.gov Construction Total $2,000 $2, E-76 Const (sub/app) 4/ / / /2016 Funding 11/1/2016 Deadline Last Updated 5/17/2016 Last Invoice (sub/app) Tuesday, May 17, :30:42 PM City of San Jose Page 14 of b

154 Programmed Projects Quarterly Monitoring Report January-March 2016 Sponsor: City of San Jose Project Title: San Jose Smart Intersections Program 15 of 16 Project No SCL Fund Source CMAQ $1,150 Local $157 Project Description Upgrade traffic signal controls at 35 intersections along six miles of Tully Road and Saratoga Avenue. Project Milestone Field Review ENV Funds ($000) $0 Programmed Year Schedule Start mm/yyyy End mm/yyyy 8/2015 Obligated 3/24/2016 Comments Design $ /2015 6/2016 Manager Name Ho Nguyen ROW $0 Phone/Fax Construction Total $897 $1, E-76 Const (sub/app) 11/1/ /1/2015 Funding Deadline obligated Last Updated 5/17/2016 Last Invoice (sub/app) 4/13/2016 Sponsor: City of San Jose Project Title: San Jose Transportation Demand Management 16 Project No of SCL Fund Source CMAQ $1,500 Local $194 Project Description Encourage the use of transit, bike, walking and other alternative transportation modes in San Jose, beginning with the Downtown and Central City. Project Milestone Field Review ENV Funds ($000) $0 Programmed Year Schedule Start mm/yyyy End mm/yyyy Comments City in final stages of executing a contract with consultant. Design $0 Manager Name Laura Stuchinsky ROW $0 Phone/Fax laura.stuchinsky@sanjoseca.gov Construction Total $1,694 $1, E-76 Const (sub/app) 6/2016 9/29/2015 Funding obligated Deadline Last Updated 5/16/2016 Last Invoice (sub/app) Tuesday, May 17, :30:42 PM City of San Jose Page 15 of b

155 Programmed Projects Quarterly Monitoring Report January-March 2016 Sponsor: City of Saratoga Project Title: Highway 9 Safety Improvements (BEP Project) 1 of 3 Project No SCL Fund Source CMAQ $462 HSIP-T3 $900 HSIP-T4 $900 Local $364 Project Description Construct bike/ped safety improvements on SR9 in Saratoga. Project Milestone Field Review ENV Design Funds ($000) $522 $0 Programmed Year 2008/09 Schedule Start mm/yyyy End mm/yyyy complete Comments HSIP-T4 obligated 3/28/2016. Award in July Manager Name Iveta Harvancik ROW $0 Phone/Fax iharvancik@saratoga.ca.us Construction Total $2,104 $2, /09 E-76 Const (sub/app) 6/ /2016 3/2016 Funding Deadline obligated Last Updated 4/21/2016 Last Invoice (sub/app) 11/2014 Sponsor: City of Saratoga Project Title: Prospect Road Complete Streets 2 Project No of SCL Fund Source CMAQ $4,205 Local $560 Project Description Traffic calming on Prospect Road between Saratoga/Sunnyvale Rd and Lawrence Expressway and on Saratoga Ave between Highway 85 to the City Limits to the north. Project Milestone Field Review Funds ($000) Schedule Programmed Year Start mm/yyyy End mm/yyyy 4/2014 ENV $ / /2015 Moved CON to Comments Design $0 1/2015 5/2016 Manager Name Macedonio Nunez ROW $ /2016 6/2016 Phone/Fax mnunez@saratoga.ca.us Construction Total $4,500 $4, E-76 Const (sub/app) 4/ /2017 2/2016 4/2016 Funding 11/1/2016 Deadline Last Updated 5/16/2016 Last Invoice (sub/app) Tuesday, May 17, :30:42 PM City of Saratoga Page 16 of b

156 Programmed Projects Quarterly Monitoring Report January-March 2016 Sponsor: City of Saratoga Project Title: Saratoga Village Sidewalk Rehabilitation 3 of 3 Project No SCL Fund Source CMAQ $162 Local $40 Project Description Sidewalk rehabilitation along Big Basin Way between 6th street and Hwy 9. Project Milestone Field Review Funds ($000) Programmed Year Schedule Start mm/yyyy End mm/yyyy 4/2014 ENV $19 6/2015 8/2015 Comments Moved CON funding to Design $ /2015 9/2015 Manager Name Macedonio Nunez ROW $ /2015 6/2016 Phone/Fax mnunez@saratoga.ca.us Construction Total $183 $ E-76 Const (sub/app) 4/2017 7/2017 9/ /2016 Funding Deadline 11/1/2016 Last Updated 5/16/2016 Last Invoice (sub/app) Tuesday, May 17, :30:42 PM City of Saratoga Page 17 of b

157 Programmed Projects Quarterly Monitoring Report January-March 2016 Sponsor: City of Sunnyvale Project Title: Sunnyvale/Saratoga Road Bike/Ped Safety 1 of 6 CMAQ $162 Local $21 Project No SCL Fund Source Project Description In Sunnyvale: On Sunnyvale- Saratoga Road at Mathilda: Upgrade the existing traffic signal and install new ramps, bike detection and ped signals. Project Milestone Field Review Funds ($000) Programmed Year Schedule Start mm/yyyy End mm/yyyy 5/2016 6/2016 ENV $ / /2016 Comments Consultant contract is in approval process. Design $0 5` /2016 Manager Name Shahid Abbas ROW $0 Phone/Fax sabbas@sunnyvale.ca.gov Construction Total $524 $ E-76 Const (sub/app) 6/2017 2/ /2016 2/2017 Funding Deadline 11/1/2016 Last Updated 4/26/2016 Last Invoice (sub/app) Sponsor: 2 Project No of SCL Fund Source CMAQ $956 Local $254 City of Sunnyvale Project Description In Sunnyvale: On three separate sections of Fair Oaks Avenue, construct bike lanes and twoway left turn lanes. Project Milestone Field Review Project Title: Funds ($000) Fair Oaks Avenue Bikeway and Streetscape Schedule Programmed Year Start mm/yyyy End mm/yyyy 3/2015 ENV $ / /2016 Comments Consultant contract in approval process. Design $ / /2016 Manager Name Shahid Abbas ROW $0 Phone/Fax sabbas@sunnyvale.ca.gov Construction Total $1,036 $1, E-76 Const (sub/app) 2/2017 6/ /2016 2/2017 Funding 11/1/2016 Deadline Last Updated 4/26/2016 Last Invoice (sub/app) Tuesday, May 17, :30:43 PM City of Sunnyvale Page 18 of b

158 Programmed Projects Quarterly Monitoring Report January-March 2016 Sponsor: City of Sunnyvale Project Title: Maude Avenue Bikeway and Streetscape 3 Project No of SCL Fund Source CMAQ $695 Local $135 Project Description In Sunnyvale, on Maude Avenue between Mathilda Avenue and Fair Oaks Avenue, install medians, modify roadway geometry and stripe bike lanes. Project Milestone Field Review Funds ($000) Programmed Year Schedule Start mm/yyyy End mm/yyyy 5/2016 7/2016 ENV $ / /2016 Comments Preliminary traffic studies performed. Project scoping and advertising for consultants are underway. Design $0 6/ /2016 Manager Name Shahid Abbas ROW $0 Phone/Fax sabbas@sunnyvale.ca.gov Construction Total $695 $ E-76 Const (sub/app) 3/2017 9/ /2016 2/2017 Funding 11/1/2016 Deadline Last Updated 4/26/2016 Last Invoice (sub/app) Sponsor: City of Sunnyvale Project Title: Sunnyvale East and West Channel Multi-UseTrails 4 Project No of SCL Fund Source CMAQ $3,440 Local $1,305 Project Description Project scope to be determined. Project Milestone Field Review ENV Funds ($000) $400 Programmed Year Schedule Start mm/yyyy End mm/yyyy Comments Work will start after SCWD completes their work in Design $0 Manager Name Shahid Abbas ROW $0 Phone/Fax sabbas@sunnyvale.ca.gov Construction Total $4,345 $4, E-76 Const (sub/app) 11/2015 2/2016 Funding 11/1/2016 Deadline Last Updated 4/26/2016 Last Invoice (sub/app) Tuesday, May 17, :30:43 PM City of Sunnyvale Page 19 of b

159 Programmed Projects Quarterly Monitoring Report January-March of 6 Sponsor: Project No SCL Fund Source CMAQ $1569 Local $331 City of Sunnyvale Project Description In Sunnyvale: Construct sidewalks, bulb-outs, and curb ramps; install in-pavement crosswalk lights, signs, and pavement markings; upgrade (reduce) corner radius. Project Milestone Field Review Project Title: Funds ($000) Sunnyvale SRTS Ped Infrastructure Improvements Programmed Year Schedule Start mm/yyyy ENV $ /2015 End mm/yyyy 8/2012 Design is in progress. Comments Design $0 8/ /2016 Manager Name Shahid Abbas ROW $0 Phone/Fax sabbas@sunnyvale.ca.gov Construction Total $1,569 $1, E-76 Const (sub/app) 1/2017 3/ /2016 3/2017 Funding Deadline 11/1/2016 Last Updated 4/26/2016 Last Invoice (sub/app) Sponsor: City of Sunnyvale Project Title: Duane Avenue Roadway Preservation 6 Project No of SCL Fund Source Local $223 STP $1,576 Project Description In Sunnyvale, rehabilitate Duane Avenue pavement, curb and gutter between San Juan Avenue and Stewart Drive. Project Milestone Field Review ENV Funds ($000) $335 Schedule Programmed Year Start mm/yyyy 2014 End mm/yyyy complete Project completed. Comments Design $0 complete Manager Name Shahid Abbas ROW $0 Phone/Fax sabbas@sunnyvale.ca.gov Construction Total $1,464 $1, E-76 Const (sub/app) 11/2015 7/2016 8/ /2015 Funding completed. Deadline Last Updated 4/26/2016 Last Invoice (sub/app) 3/2016 Tuesday, May 17, :30:43 PM City of Sunnyvale Page 20 of b

160 Programmed Projects Quarterly Monitoring Report January-March 2016 Sponsor: County of Santa Clara Project Title: East San Jose Pedestrian Improvements 1 of 4 Local $532 STP $2,128 Project No SCL Fund Source Project Description Fill in sidewalk gaps and provide ADA enhancements within existing rights-of-way on various roads. Project Milestone Field Review Funds ($000) Programmed Year Schedule Start mm/yyyy End mm/yyyy 3/2013 ENV $0 7/2013 8/2015 Comments Obligated.02/22/2016. CON to start in August. Design $ /2013 4/2016 Manager Name Sadegh Sadeghi/Dawn Cameron ROW $0 8/ /2015 Phone/Fax / sadegh.sadeghi/dawn.cameron@ rda.sccgov.org Construction Total $2,340 $2, E-76 Const (sub/app) Last Invoice (sub/app) 8/ /2016 3/2/ /27/1015 Funding Deadline obligated Last Updated 5/16/2016 Sponsor: County of Santa Clara Project Title: Santa Clara County Non Infrastructure SRTS Program 2 Project No of SCL Fund Source CMAQ $838 Local $08 Project Description Non-infrastructure SRTS education and encouragement services for schools. Project Milestone Field Review ENV Funds ($000) $0 Schedule Programmed Year Start mm/yyyy 4/2014 N.A. End mm/yyyy Comments In progress. Preparing invoice. Design $0 N.A. Manager Name Bonnie Broderick ROW $0 N.A. Phone/Fax (408) Bonnie.Broderick@phd.sccgov.or g Construction Total $946 $ E-76 Const (sub/app) Last Invoice (sub/app) 7/2015 6/2017 7/10/14 8/21/14 12/2015 Funding obligated Deadline Last Updated 5/16/2016 Tuesday, May 17, :30:43 PM County of Santa Clara Page 21 of b

161 Programmed Projects Quarterly Monitoring Report January-March 2016 Sponsor: County of Santa Clara Project Title: San Tomas Aquino Spur Trail Multi-Use Trail Phase 2 3 of 4 Project No SCL Fund Source CMAQ $1,884 Local $1,760 TAP $1,350 Project Description Construct an extension of the San Tomas Aquino Spur Trail (a Class I bicycle/pedestrian trail) on the west side of San Tomas Expressway from SR 82 (El Camino Real) to Homestead Road. Project Milestone Field Review ENV Funds ($000) $400 Programmed Year 2013 Schedule Start mm/yyyy End mm/yyyy complete complete Comments This project was awarded in April Design $0 complete Manager Name Dawn Cameron/Craig Petersen ROW $0 complete Phone/Fax / dawn.cameron/craig.petersen@r da.sccgov.org Construction Total $4,994 $5, E-76 Const (sub/app) Last Invoice (sub/app) 6/2016 3/2017 2/2015 5/1/ /16/2014 Funding Deadline awarded Last Updated 5/16/2016 Sponsor: 4 Project No of SCL Fund Source CMAQ $6,085 Local $1,899 STP $1,650 County of Santa Clara Project Description In San Jose: Install Intelligent Transportation System infrastructure, fill in sidewalk gaps, install pedestrian sensors and bike detection at all intersections and implement traffic responsive and adaptive signal timing. Project Milestone Field Review Design Project Title: Funds ($000) Capitol Expressway ITS and Bike/Ped Improvements Programmed Year 2014 Schedule Start mm/yyyy End mm/yyyy 12/2013 ENV $0 5/2014 6/2016 $1,434 3/2014 5/2016 Comments NEPA clearance received from Caltrans. CEQA notice of exemption filed. Manager Name Dawn Cameron/Bill Yeung ROW $0 12/2015 Phone/Fax / dawn.cameron/bill.yeung@rda.sc cgov.org Construction Total $8,200 $9, E-76 Const (sub/app) Last Invoice (sub/app) 6/ / /2016 2/ /22/2015 Funding 11/1/2016 Deadline Last Updated 5/16/2016 Tuesday, May 17, :30:43 PM County of Santa Clara Page 22 of b

162 Programmed Projects Quarterly Monitoring Report January-March 2016 Sponsor: VTA Project Title: Route 152 New Alignment 1 Project No of SCL Fund Source IIP $5 Local $5.15 STP $2.86 Project Description Route 152 new alignment from Rte 101 to Rte 156. Realign highway and evaluate route management strategies, including potential roadway pricing. Also includes SR152 "trade corridor" study from 101 to I-5. Project Milestone Field Review Design Funds ($000) Programmed Year Schedule Start mm/yyyy End mm/yyyy ENV $ / /2018 $0 Comments VTA is requesting additional funding from CTC to continue project efforts, including PA/ED. An additional $20 million is needed to complete the environmental clearance. Manager Name Gene Gonzalo ROW $0 Phone/Fax gene.gonzalo@vta.org Construction Total $0 $13 E-76 Const (sub/app) Funding Deadline Last Updated 11/10/2015 Last Invoice (sub/app) Sponsor: VTA Project Title: SR 85 Express Lanes 2 Project No of SCL Fund Source ARRA $3,300,000 Earmark $1,500,000 Local $2,000,000 RTP-LRP $163,200,000 Project Description Implement roadway pricing on SR 85 carpool lanes. Project Milestone Field Review Design Funds ($000) Programmed Year Schedule Start mm/yyyy End mm/yyyy ENV $4, /2009 4/2015 $19,000 Comments Project report and environmental document approved in April Manager Name Maren Schram ROW $500 Phone/Fax maren.schram@vta.org Construction Total $145,700 $170,000 E-76 Const (sub/app) Funding PE: 6/30/2018 Deadline Last Updated 11/10/2015 Last Invoice (sub/app) 3/20/2015 5/1/2015 Tuesday, May 17, :30:43 PM VTA Page 23 of b

163 Programmed Projects Quarterly Monitoring Report January-March 2016 Sponsor: VTA Project Title: Regional Planning Activities and PPM - Santa Clara 3 of 8 Project No SCL Fund Source Local $148 STIP $3,944 STP $1,145 Project Description Santa Clara: Regional Planning Activities and Planning, Programming and Monitoring Project Milestone Field Review ENV Funds ($000) $5,237 Programmed Year 14/15-18/19 Schedule Start mm/yyyy End mm/yyyy Comments Design $0 Manager Name Amin Surani ROW $0 Phone/Fax amin.surani@vta.org Construction Total $0 $5,237 E-76 Const (sub/app) Funding Deadline Last Updated 1/6/2015 Last Invoice (sub/app) Sponsor: VTA Project Title: US 101 Express Lanes 4 Project No of SCL Fund Source Local $10,200 RTP-LRP $414,800 Project Description Implement roadway pricing on US 101 carpool lanes Project Milestone Field Review Funds ($000) Programmed Year Schedule Start mm/yyyy End mm/yyyy ENV $6, /2010 8/2015 Comments PSR-PDS for Project Initiation Documents (PID) Phase approved in August Project Report and Environmental Document (CE/CE) were completed in August Design phase will be conducted via separate projects. Design $34, Manager Name Lam Trinh ROW $5, Phone/Fax lam.trinh@vta.org Construction Total $379,800 $425, E-76 Const (sub/app) N.A. Funding Deadline Last Updated 5/3/2016 Last Invoice (sub/app) N.A. N.A. Tuesday, May 17, :30:43 PM VTA Page 24 of b

164 Programmed Projects Quarterly Monitoring Report January-March 2016 Sponsor: 5 Project No of SCL Fund Source Local $7,564 RTP-LRP $10,903 San Jose $1,000 Sunnyvale $1,739 VPPP $1,600 VTA Project Description Implement roadway pricing on SR 237 carpool lane; extending the Express Lanes on SR 237 to Mathilda Avenue Project Milestone Field Review Design Project Title: Funds ($000) SR 237 Express Lanes: Zanker Rd to Mathilda Ave Programmed Year 2013 Schedule Start mm/yyyy End mm/yyyy ENV $2, /2013 6/2015 $9,053 7/ /2016 Comments PID and PA/ED completed in June PS&E is in progress including Electronic Toll System (ETS) development. Manager Name Lam Trinh ROW $0 Phone/Fax (408) lam.trinh@vta.org Construction Total $10,903 $22, E-76 Const (sub/app) 1/2017 8/2018 Funding Deadline Last Updated 5/3/2016 Last Invoice (sub/app) Sponsor: 6 Project No of SCL Fund Source Local $502 STIP $4,456 VTA Project Description Construct sound walls on I-680 between Capitol Expressway and Mueller Avenue. Project Milestone Field Review Project Title: Funds ($000) I-680 Soundwalls - Capitol Expwy to Mueller Ave Programmed Year Schedule Start mm/yyyy End mm/yyyy ENV $ /2016 5/2017 Comments Consultant selected from 3 proposals- in negotiations. To be awarded in May Design $ /2017 4/2018 Manager Name Brian Pantaleon ROW $ /2017 4/2018 Phone/Fax brian.pantaleon@vta.org Construction Total $3,275 $4, E-76 Const (sub/app) 7/2018 4/2019 Funding 11/1/2018 Deadline Last Updated 4/21/2016 Last Invoice (sub/app) Tuesday, May 17, :30:43 PM VTA Page 25 of b

165 Programmed Projects Quarterly Monitoring Report January-March 2016 Sponsor: VTA Project Title: Central and South County Bicycle Plan 7 of 8 Project No SCL Fund Source ATP $443 Local $58 Project Description Phased update to the Santa Clara Countywide Bicycle Plan. The update will focus on disadvantaged communities in Santa Clara County, including downtown San Jose, East San Jose, northern Santa Clara, and Gilroy. Project Milestone Field Review ENV Design Funds ($000) $0 $0 Programmed Year Schedule Start mm/yyyy End mm/yyyy In progress. Comments Manager Name Lauren Ledbetter ROW $0 Phone/Fax lauren.ledbetter@vta.org Construction Total $501 $ E-76 Const (sub/app) 10/ Funding Deadline obligated Last Updated 4/20/2015 Last Invoice (sub/app) Sponsor: VTA Project Title: I-280/Winchester Study 8 Project No of SCL Fund Source Local $250 San Jose $250 STP $500 Project Description Conduct planning activities to identify and evaluate improvements in the vicinity of the I-280/Winchester Boulevard interchange. Project Milestone Field Review Funds ($000) Schedule Programmed Year Start mm/yyyy End mm/yyyy ENV $1, /2015 6/2017 Obligated on 9/12/2015. Comments Design $0 Manager Name Sajeeni DeAlwis-Mima ROW $0 Phone/Fax Sajeeni.DeAlwis-Mima@vta.org Construction Total $0 $1,000 E-76 Const (sub/app) Funding obligated Deadline Last Updated 11/10/2015 Last Invoice (sub/app) Tuesday, May 17, :30:43 PM VTA Page 26 of b

166 6.9.c Programmed Projects Quarterly Monitoring Report Attachment C List of Acronyms ABAG -Association of Bay Area Governments ABC -Across Barrier Connections AC -Asphalt Concrete ACE -Altamont Commuter Express ADA-Americans with Disabilities Ac t ARRA-American Recovery and Reinvestment Act BART -Bay Area Rapid Transit BEP-Bicycle Expenditure Program BRT- Bus Rapid Transit BTG - VTA Bicycle Technical Guidelines CDT - VTA Community Design & Transportation CEQA-California Environmental Quality Act CIP-Capital Improvement Program CMAQ-Congestion Mitigation and Air Quality Improvement Program CMIA-Corridor Mobility Improvement Account CMP -Congestion Management Program CTC-California Transportation Commission CUP-Conditional Use Permit CWC -Citizen Watchdog Committee DASH - San Jose Downtown Area Shuttle DEIR -Draft Environmental Impact Report DU/AC -Dwelling Units Per Acre E76-Formally called Authorization to Proceed" EIR -Environmental Impact Report EIS-Environmental Impact Statement ER -Environmental Review ETS-Electronic Toll System FAR- Floor Area Ratio FEIR -Final Environmental Impact Report GPA -General Plan Amendment HBRR- Highway Bridge Replacement and Rehabilitation HOV -High-Occupancy Vehicle HPP-High Priority Project HSR -High-Speed Rail IS -Initial Study ITS -Intelligent Transportation System LPR-Local Program Reserve LRT -Light Rail Transit LU/TD -Land Use/Transportation Diagram MND -Mitigated Negative Declaration MTC -Metropolitan Transportation Commission ND -Negative Declaration NEPA-National Environmental Policy Act NOI -Notice of Intent Page 1 NOP -Notice of Preparation NPDES- National Pollution Discharge Elimination System PCC -Portland Concrete Cement PDR -Planned Development Rezoning PE -Preliminary Engineering PTG- VTA Pedestrian Technical Guidelines PUC-Public Utilities Commission PUD -Planned Urban Development R&D -Research & Development RFP-Request for Proposals ROW -Right-Of-Way RTP/LRP-Long Range Undefined Funds SCVWD -Santa Clara Valley Water District SF -Square Foot SHOPP-State Highway Operation and Protection Program SPA- Specific Plan Amendment STIP-State Transportation Improvement Program STP-Surface Transportation Program SVRT -Silicon Valley Rapid Transit SVRTC- Silicon Valley Rapid Transit Corridor SWPPP -Storm Water Pollution Prevention Program TDM -Transportation Demand Management TE-Transportation Enhancements TFCA Transportation Fund for Clean Air TIA -Transportation Impact Analysis TOD -Transit-Oriented Development UPRR- Union Pacific Railroad VPPP-Value Pricing Pilot Program

167 6.10 Date: July 28, 2016 Current Meeting: August 4, 2016 Board Meeting: August 4, 2016 BOARD MEMORANDUM TO: THROUGH: FROM: SUBJECT: Santa Clara Valley Transportation Authority Board of Directors General Manager, Nuria I. Fernandez Chief Financial Officer, Raj Srinath Audit Dashboard Follow-up: Audit Recommendations Issued by the Office of the Auditor General FOR INFORMATION ONLY BACKGROUND: In 2008, VTA established an independent audit function reporting to the Governance and Audit Committee by utilizing contract auditors to perform independent audit services and serve in the position of the Auditor-General. The Office of the Auditor-General has issued recommendations to strengthen compliance, improve internal control, and promote operational effectiveness and efficiency. In May 2016, VTA Internal Audit Program was established to follow up and report on the status of open audit recommendations and corrective action plans. DISCUSSION: The purpose of the audit dashboard report is to provide a status summary of implementation of recommendations. This is a control mechanism established by management to track and provide reasonable assurance that appropriate and prompt action is provided by management in support of implementing the recommendations. The summary of implementation provided on the next page is based on representations made by the individual/department responsible for implementing the recommendation. It is the plan of VTA Internal Audit Program to perform its independent verification to validate the representations made by the responsible individual/department. As of May 2016, the total number of recommendations is 121 (please see attachment). Of this total, 55 are not yet due for implementation. The implementation status of the remaining 66 recommendations is summarized as follows: 3331 North First Street San Jose, CA Administration Customer Service

168 6.10 Not Implemented 43% Status of Implementation As of May 2016 Fully Implemented 39% Substantially Implemented 18% Reasons and actions taken for those recommendations that have not been fully implemented can be found in the attachment. VTA Internal Audit Program will continue to follow up on these recommendations until they are fully implemented and report to the Governance and Audit Committee on an annual basis. STANDING COMMITTEE DISCUSSION/RECOMMENDATION: The Governance & Audit Committee considered this item on June 2, The Committee unanimously recommended the item be forwarded to the VTA Board of Directors. Prepared By: Grace S. Ragni Memo No Page 2 of 2

169 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 1 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Identification 1 ARBRTPDA ARBRTPDA 1 05/05/16 On-Schedule Completion Governance & Audit Committee review Summary Detailed Summary Detailed Ensure the bid goes out fully-developed to minimize change orders Insert and enforce contract penalties for failure to perform, including schedule-adherence by contractor While delays are inevitable, develop contingency plans for contractor. 2 ARBRTPDA ARBRTPDA 2 05/05/16 Safety Ensure radar scan requirement is a component in future contracts Utility relocations should be included as part of the pre-construction process. Original Target Date of Implementation Responsible Party Specific Responsible Individual Carolyn Gonot, Trish Kane Trish Kane As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken no implementation date no implementation date 3 ARBRTPDA ARBRTPDA 3 05/05/16 Minimize Community Impacts Major goal in construction contracts should be to minimize community impacts (e.g. develop schedules that minimize community disruption) Outline acceptable work plans in contract to ensure community impact is minimized (e.g. perform work in sections of the street in shorter increments to minimize impacts to businesses). Carolyn Gonot, Trish Kane, Bernice Alaniz no implementation date 4 ARBRTPDA ARBRTPDA 4 05/05/16 Contractor Qualification Ensure bid scope requires contractor to have adequate experience for project Ensure the right VTA/Vendor Project Manager is assigned for the contract Insert required qualifications into contract for key personnel Verify contractor's experience and qualification after receipt of bid based on information submitted by the contractor. Trish Kane no implementation date C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

170 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 2 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Identification 5 ARBRTPDA ARBRTPDA 5 05/05/16 Contractor expectations Governance & Audit Committee review Summary Detailed Summary Detailed Provide more specific contract requirements and guidelines Set up additional processes in bid documents and contracts to ensure that priority expectations are met and impacts are minimized, utilizing interim milestones and liquidated damages Include performance incentives in contract document Nonperformance can be considered in evaluating future contractor bids. Original Target Date of Implementation Responsible Party Specific Responsible Individual Trish Kane As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken no implementation date 6 ARBRTPDA ARBRTPDA 6 05/05/16 Scope Definition Ensure consensus on all design issues are established prior to bid process Provide status reports to an active policy Advisory Board (PAB) Report regularly to a standing committee of the VTA Board. Trish Kane, Carolyn Gonot no implementation date 7 ARBRTPDA ARBRTPDA 7 05/05/16 Contract and Policy Compliance Ensure that all pre-construction activities have been scheduled properly such as right-of-way acquisition, demolition, utility relocation, and permits prior to start of construction as required by the VTA policies and procedures VTA should continue to consider its right to recover costs under the surety bond for contractor's non-performance Start weekly progress reporting prior to the first week of construction Ensure consistent review of proper coverage and limits per contract Develop early warning system to ensure contract compliance Trish Kane no implementation date C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

171 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 3 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Identification 8 ARBRTPDA ARBRTPDA 8 05/05/16 Public Messaging Governance & Audit Committee review Summary Detailed Summary Detailed Centralized communications with one point of contract for the public Provide sufficient resources with appropriate, qualified skills and public outreach experience Contract for the most appropriate community outreach staff as needed Open field office 3 months before construction begins with regular visits from engineering and construction personnel. Original Target Date of Implementation Responsible Party Specific Responsible Individual Bernice Alaniz As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken no implementation date 9 ARBRTPDA ARBRTPDA 9 05/05/16 Response to Inquiries Create a running log of inquiries, responses, and outcomes to facilitate rapid and accurate response Identify one primary person with designated backup, to ensure consistent messaging Communicate to the public on a weekly basis (at minimum) Need to have a more targeted outreach strategy, where community organizations are lacking. Bernice Alaniz no implementation date 10 ARBRTPDA ARBRTPDA 10 05/05/16 Build Community Open field office to future projects at least 3 months in advance of construction (in addition to Understandin the standard communication and notification g Prior to Construction plan) Develop a consistent team to provide uniform messaging throughout construction Conduct several informal meetings in the community Consider developing a Business Advisory Committee to solicit input. Bernice Alaniz no implementation date C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

172 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 4 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Identification 11 ARBRTPDA ARBRTPDA 11 05/05/16 Coordinated process Governance & Audit Committee review Summary Detailed Summary Detailed Perform short, concentrated project framing workshop to ensure staff-level consensus and consensus with the City Ensure that consensus with the City and its partners are established on all issues prior to going out for bid Ensure that the Policy Advisory Board and standing Board subcommittee has consistent and recurring input on the project Create working groups with other transit agencies/dot's performing BRT projects. Original Target Date of Implementation Responsible Party Specific Responsible Individual Bernice Alaniz, Carolyn Gonot As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken no implementation date 12 ATUPPCA ATUPPCA 1 8/28/14 Management to explore fully implementing and using the SAP Pension module or similar application that fully integrates with SAP. Utilizing the SAP system to its fullest capabilities would streamline the manual processes, automate controls, reduce paperwork and simplify workflow. This would also allow all documents to be located electronically in one place and easily accessed, searched, tracked and reported upon. Additionally, if VTA management elects to implement the SAP Pension module, relevant training should be provided to all users to help maximize system usability, employee satisfaction with the new process and return on investment. VTA management concurs with the recommendation. VTA will immediately begin evaluation to determine the business needs of the VTA/ATU Pension Plan administration process. Following completion of an SAP enhancement (Pack 6) scheduled for completion by December 2014 and depending on the results of the business needs evaluation, VTA will implement either SAP functionality or another available technology solution, whichever best meets the business needs. Although a firm date cannot be determined at this time, implementation of the technology solution is estimated for early /31/15 Ali Hudda fully implemented In August 2015, Maria Chavez spoke to and provided Technology staff the Auditor General's recommendation regarding SAP capabilities. Technology staff (Terresa Lee, Information Systems Supervisor) confirmed she reviewed SAP capabilities/functionalities, contacted external SAP users, and determined that the pension-related features in SAP are insufficient to be considered a viable option to improve efficiency. Technology and Retirement Services staff will develop the necessary reports to streamline and generate data and will review business processes to improve reporting capabilities. This is considered complete (per A Hudda) as exploration was made by IT and there was a determination that it is not necessary to implement SAP Pension module or similar applications. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

173 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 5 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 13 ATUPPCA ATUPPCA 2 8/28/14 As a part of our recommendation related to Improvement Opportunity 1, using the SAP system to its fullest capabilities, management should re-evaluate the process for data retention. With this, management should consider: (1) Scanning in all relevant documents so that a second, secure copy exists; and (2) Complying with the VTA-approved retention policy destroying any hard copy files older than stipulated by the policy. If VTA chooses to retain all hard copies, then management should consider leveraging lower cost temporary employees or interns to inventory and organize the files. Offsite storage solutions, such as Iron Mountain, should also be considered to help maximize the safety of the documents. VTA management concurs with the recommendation. Scanning and electronically storing critical supporting documents for new retirees has been implemented. An evaluation is underway to identify the best solution for cataloging and managing the files, which will be completed by the end of October 2014, at which time the selected document storage solution will be implemented. Digitally backing up all existing retiree documentation, however, will require additional resources, albeit on a temporary basis, to implement. An evaluation has been initiated to determine the scope, schedule and resources required to complete this project. This evaluation will be completed by the end of October Completion of digitally backing up existing critical retiree documentation is tentatively projected by March 2015, but is dependent on the results of the evaluation and resource availability. Original Target Date of Implementation Evaluation: 10/31/14 Conversion to digital: 3/31/15 Responsible Party Specific Responsible Individual Gary Miskell, Ali Hudda As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken substantially implemented In September 2014, Maria Chavez requested the establishment of a shared drive exclusively for Retirement Services staff. Retirement Services staff began to scan essential retirement documents (retirement request applications, birth/marriage certificates, divorce/dros, salary calculations, actuary documents, etc.) of new retirees effective December Retirement Services has periodically met with Technology staff responsible for SharePoint to create a SharePoint collaboration site to house files. The intent is to eventually scan all Pension Plan retirement files. However, this will require additional resources, including staff to carry out the project effectively, accurately, and efficiently. Technology has loaned the Retirement Services unit scanning equipment to efficiently scan documents. Record retention policy will have to be approved by the Board of Pensions since it is a separate and independent entity from VTA. Policy will not be considered by the Board of Pensions until the completion and evaluation of the SharePoint site. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

174 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 6 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 14 ATUPPCA ATUPPCA 3 8/28/14 The RS team should consider updating existing documentation and developing new documentation where none exists for processes and controls across their scope of responsibility. As a part of this documentation, the RS team should utilize the IT department to identify key fields within the current SAP HR module and limit what fields are used and what data can be entered into each field. This would create consistency within all processes and thus enhance their ability to extract more accurate data for actuarial purposes. Some benefits that would be derived would include: Consistent, standardized process execution and data entry methodologies; Strengthened and more efficient internal controls throughout the processes; Improved employee understanding of system access and capabilities, allowing for thorough review of segregation of duties; and Easier training for new employees and cross-training of current employees. The Board of Pensions should thoroughly review and update, where warranted, related existing Plan policies to accurately match current business practices. Until the policy is revised, the BoP should provide clear guidance to RS staff on how disability retirements and medical re-evaluations should be processed. This will be especially important if the process is automated as outlined in the recommendation for Improvement Opportunity 1. These decisions should be formally announced as part of the BoP s decision and be captured in the record of the meeting. VTA management agrees with the recommendation. Critical work procedures will be developed or updated by June 30, In addition, additional internal controls, albeit manual ones, suggested by Auditor General s Office staff, will be implemented immediately. VTA Management concurs with the recommendation. In anticipation of upcoming VTA/ATU contract negotiations, a subcommittee of BoP members and headed by BoP Vice Chairperson Robert Escobar has been established to review current Pension Plan policies. Any changes to Pension Plan policies as a result of contract negotiations will be presented to the BoP. Completion of any modifications to Pension Plan policies is targeted for six months following successful completion of negotiations between VTA and ATU. Original Target Date of Implementation Specific Responsible Individual Responsible Party 06/30/15 Ali Hudda fully implemented As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken Since 2015, Retirement Services staff has updated work procedures/business processes. As time permits and/or business processes change, Retirement Services is updating work instructions. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

175 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 7 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 15 ATUPPCA ATUPPCA 4 8/28/14 The Board of Pensions should thoroughly review and update, where warranted, related existing Plan policies to accurately match current business practices. Until the policy is revised, the BoP should provide clear guidance to RS staff on how disability retirements and medical re-evaluations should be processed. This will be especially important if the process is automated as outlined in the recommendation for Improvement Opportunity 1. These decisions should be formally announced as part of the BoP s decision and be captured in the record of the meeting. VTA Management concurs with the recommendation. In anticipation of upcoming VTA/ATU contract negotiations, a subcommittee of BoP members and headed by BoP Vice Chairperson Robert Escobar has been established to review current Pension Plan policies. Any changes to Pension Plan policies as a result of contract negotiations will be presented to the BoP. Completion of any modifications to Pension Plan policies is targeted for six months following successful completion of negotiations between VTA and ATU. Original Target Date of Implementation Six months following effective date on new VTA/ATU contract Responsible Party Specific Responsible Individual Ali Hudda As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken substantially implemented Since 2014, the Pension Plan Policies subcommittee has met periodically to discuss existing Board of Pensions policies. The subcommittee has developed/revised several Board policies that are scheduled to go to the Board of Pensions for their review and approval in the near future. 16 ATUPPCA ATUPPCA 5 8/28/14 Even though the ATU Investment Committee does provide optional training for its members, there is no formal requirement outlined in Plan policies. We recommend that VTA be proactive by identifying options and creating a recommended training plan policy for the BoP s consideration. This will ensure that recommendations made to the Investment Committee and BoP can be more effectively discussed and decided upon. VTA management concurs with the recommendation. This recommendation was presented to BoP members at the August 12, 2014 BoP meeting. BoP members expressed support that formalized training opportunities will assist them in their fiduciary responsibilities and improve their contributions in making investment decisions on behalf of VTA-ATU, Local 265 members. VTA staff will work with the BoP to assist in formalizing training opportunities as part of reviewing the BoP s policies and will complete this effort by December /31/14 Ali Hudda substantially implemented The Pension Plan Policies subcommittee has revised the Board of Pensions Education Policy which should be presented to the Board of Pensions in June or July 2016 for their review and approval. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

176 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 8 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 17 BARTCAA BARTCAA /03/15 We recommend that if a subsidy is used to reimburse O&M costs, BART should provide VTA with a monthly or quarterly report "truing up" actual costs incurred to budgeted costs and demonstrating that the subsidy was actually used to pay for those costs. 18 BARTCAA BARTCAA /03/15 The subsidy from VTA should be deposited into a VTA account dedicated to paying O&M costs. Any accrued interest from the subsidy should similarly be used towards reimbursing O&M costs. 19 BARTCAA BARTCAA /03/15 VTA should evaluate whether a model-based form of calculation is most appropriate for the calculation and invoicing of O&M costs. Other options may include reimbursing BART for actual cost incurred (although the effort required to substantiate and verify actual costs may be excessive) or a task-based form of reimbursement. See combined response at the end. See combined response at the end. See combined response at the end. Original Target Date of Implementation Responsible Party Specific Responsible Individual As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken Carolyn Gonot, no Raj Srinath, Rob implementation Fabela date Carolyn Gonot, no Raj Srinath, Rob implementation Fabela date Carolyn Gonot, no Raj Srinath, Rob implementation Fabela date 20 BARTCAA BARTCAA /03/15 If a model-based form of reimbursement is determined to be the most appropriate, VTA should evaluate whether the Padron Model (or "Kinetics Model", as it is currently known) is the appropriate model to use or whether an alternative model should be considered. See combined response at the end. Carolyn Gonot, no Raj Srinath, Rob implementation Fabela date 21 BARTCAA BARTCAA /03/15 If a model-based form of reimbursement is determined to be the most appropriate, VTA should have the right to review and approve the costs included in the model. VTA should also be provided the right to audit and verify the model on a periodic basis. See combined response at the end. Carolyn Gonot, no Raj Srinath, Rob implementation Fabela date C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

177 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 9 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 22 BARTCAA BARTCAA /03/15 VTA and BART should evaluate whether a $12 million subsidy is appropriate and accurately captures the costs of O&M. The subsidy agreed to in the Companion Agreement should reflect the actual current alignment, with the potential for being reevaluated once Phase 2 is complete. See combined response at the end. Original Target Date of Implementation Responsible Party Specific Responsible Individual As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken Carolyn Gonot, no Raj Srinath, Rob implementation Fabela date 23 BARTCAA BARTCAA /03/15 VTA should evaluate whether using an escalation factor is the most appropriate method for adjusting the subsidy. Other options include reviewing and approving a total annual subsidy amount based on forecasted O&M costs. See combined response at the end. Carolyn Gonot, no Raj Srinath, Rob implementation Fabela date 24 BARTCAA BARTCAA /03/15 If an escalation factor is used, VTA should evaluate whether the taxable sales growth rate is the most appropriate factor to use or whether other industry escalation factors would be more appropriate. 25 BARTCAA BARTCAA /03/15 VTA should evaluate the methodology used by BART to report revenue and determine whether it is sufficiently reasonable and accurate, and the Companion Agreement should define the methodology and frequency of revenue reporting. See combined response at the end. See combined response at the end. Carolyn Gonot, no Raj Srinath, Rob implementation Fabela date Carolyn Gonot, no Raj Srinath, Rob implementation Fabela date 26 BARTCAA BARTCAA /03/15 The Companion Agreement should provide VTA the right to audit revenue reported, and VTA should have periodic access to BART's fare data and other information in order to be able to independently verify the revenue credited to the Extension. 27 BARTCAA BARTCAA /03/15 The Companion Agreement should require BART to obtain VTA review and approval for the use of all revenues generated by (credited to) the Extension. See combined response at the end. See combined response at the end. Carolyn Gonot, no Raj Srinath, Rob implementation Fabela date Carolyn Gonot, no Raj Srinath, Rob implementation Fabela date C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

178 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 10 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 28 BARTCAA BARTCAA /03/15 VTA should have access to any excess revenue generated by the Extension at least on annual basis once those revenues are known. 29 BARTCAA BARTCAA /03/15 VTA should address with the FTA whether additional grants will be available to VTA. See combined response at the end. See combined response at the end. Original Target Date of Implementation Responsible Party Specific Responsible Individual As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken Carolyn Gonot, no Raj Srinath, Rob implementation Fabela date Carolyn Gonot, no Raj Srinath, Rob implementation Fabela date 30 BARTCAA BARTCAA /03/15 1) Areas of responsibility for BART and VTA in and outside of stations should be clearly defined in the Companion Agreement in a method determined to be most appropriate by both parties, i.e. defined areas inside and outside of stations, boundaries marked on architectural drawings, etc. See combined response at the end. Carolyn Gonot, no Raj Srinath, Rob implementation Fabela date 31 BARTCAA BARTCAA /03/15 The Companion Agreement should address roles and responsibilities for aspects of O&M that are not easily defined or span multiple boundaries (such as underground utilities, fire protection, or security). 32 BARTCAA BARTCAA /03/15 VTA should collaborate with BART to review the standards in place for BART operations and maintenance. If VTA determines that BART's standards are not acceptable for the operation of the Extension, new standards should be developed, agreed to and incorporated into the Companion Agreement. 33 BARTCAA BARTCAA /03/15 VTA should have the right to approve all changes to standards that may substantially impact Extension ridership, safety and security, or customer satisfaction. See combined response at the end. See combined response at the end. See combined response at the end. Carolyn Gonot, no Raj Srinath, Rob implementation Fabela date Carolyn Gonot, no Raj Srinath, Rob implementation Fabela date Carolyn Gonot, no Raj Srinath, Rob implementation Fabela date C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

179 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 11 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 34 BARTCAA BARTCAA /03/15 Areas of responsibility for BART and VTA security and safety in and outside of stations should be clearly defined in the Companion Agreement in a method determined to be most appropriate by both parties, i.e. defined areas inside and outside of stations, boundaries marked on architectural drawings, etc. See combined response at the end. Original Target Date of Implementation Responsible Party Specific Responsible Individual As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken Carolyn Gonot, no Raj Srinath, Rob implementation Fabela date 35 BARTCAA BARTCAA /03/15 VTA should evaluate BART's safety and security standards and determine whether they are consistent with VTA's standards and expectations. See combined response at the end. Carolyn Gonot, no Raj Srinath, Rob implementation Fabela date 36 BARTCAA BARTCAA /03/15 The Companion Agreement should define the safety and security expectations on the Extension and set minimum standards, expected staffing levels, and Key Performance Indicators (KPIs) to accurately track performance and overall safety. See combined response at the end. Carolyn Gonot, no Raj Srinath, Rob implementation Fabela date 37 BARTCAA BARTCAA /03/15 VTA should evaluate whether BART's operations and maintenance standards meet VTA's standards and expectations. 38 BARTCAA BARTCAA /03/15 The Companion Agreement should clearly define roles and responsibilities for the operation of the Extension. 39 BARTCAA BARTCAA /03/15 VTA should have the right to approve all changes to standards that are determined to substantially impact Extension ridership, safety and security, or customer satisfaction. 40 BARTCAA BARTCAA /03/15 VTA should have personnel assigned to the coordination, management, and liaising of Extension activities with BART. See combined response at the end. See combined response at the end. See combined response at the end. See combined response at the end. Carolyn Gonot, no Raj Srinath, Rob implementation Fabela date Carolyn Gonot, no Raj Srinath, Rob implementation Fabela date Carolyn Gonot, no Raj Srinath, Rob implementation Fabela date Carolyn Gonot, no Raj Srinath, Rob implementation Fabela date C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

180 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 12 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 41 BARTCAA BARTCAA /03/15 VTA should have personnel assigned to processing and approving the invoices in accordance with the Companion Agreement terms and conditions and any changes or modifications therewith. 42 BARTCAA BARTCAA /03/15 VTA should have personnel assigned to monitoring service levels and key performance indicators of the Extension. See combined response at the end. See combined response at the end. Original Target Date of Implementation Responsible Party Specific Responsible Individual As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken Carolyn Gonot, no Raj Srinath, Rob implementation Fabela date Carolyn Gonot, no Raj Srinath, Rob implementation Fabela date 43 BARTCAA BARTCAA /03/15 The Companion Agreement should clearly define the boundaries of VTA's liability on the BART core system, i.e. by geographical boundaries, project type, or incremental benefit to VTA. See combined response at the end. Carolyn Gonot, no Raj Srinath, Rob implementation Fabela date 44 BARTCAA BARTCAA /03/15 VTA should have increased participation in the 10-year CIP development process with BART for any costs that will impact VTA. 45 BARTCAA BARTCAA /03/15 The Companion Agreement should give VTA the right to approve any capital improvement projects for which they will be substantially liable. See combined response at the end. See combined response at the end. Carolyn Gonot, no Raj Srinath, Rob implementation Fabela date Carolyn Gonot, no Raj Srinath, Rob implementation Fabela date 46 BARTCAA BARTCAA /03/15 The Companion Agreement should clearly identify the methodology (or methodologies, if multiple are required) used to apportion Capital Improvement project costs to VTA. See combined response at the end. Carolyn Gonot, no Raj Srinath, Rob implementation Fabela date C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

181 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 13 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 47 BARTSVSA BARTSVSA 1 05/01/14 We recommend that VTA continue to conduct the weekly meetings with SSH and emphasize the importance of communicating the current, accurate and complete schedules. We also recommend that VTA request SSH to review the staffing level for this requirement to ensure staffing is adequate to meet the upcoming construction, and provide a report back to VTA on their go-forward plans to ensure adequate staffing, including measures such as provisions for back-up personnel and cross-training provisions. We agree with the recommendation as stated and will continue to use the contractual tools at our disposal including formal notifications to SSH for corrective actions needed, non-compliance reports and /or withholding portions of payments until SSH is fully compliant. VTA is reorganizing its team that will closely coordinate with SSH s field staff to assure seamless communication. By April 30, 2014, VTA will reiterate contractual obligations regarding community outreach requirements to SSH, indicate that given their current performance SSH resources applied to this requirement appear to be insufficient, and strongly encourage them to consider making changes to the SSH organization to realize needed performance improvement in this area. Original Target Date of Implementation Specific Responsible Individual Responsible Party 04/30/14 Carolyn Gonot was considered not implemented As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken Was considered not implemented as no status was received from responsible department. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

182 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 14 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 48 BARTSVSA BARTSVSA 2 05/01/14 We recommend that VTA work closely with SSH to ensure that they submit timely and accurate information as requested by Change Order #38 and the subsequent Project Manager s response dated March 11, Additionally, should future change orders arise whereby schedule updates are required, VTA should work with SSH to help ensure that the process is completed timely. SSH submitted a revised Baseline Contract Schedule on January 16, 2013 that was accepted with status Make Corrections Noted (MCN) on February 10, SSH made a subsequent submittal on February 14th as stated. It was also accepted MCN on March 11, We agree with the recommendation that VTA work closely with SSH to ensure they submit timely and accurate information as requested by CO #38 and for any future schedule revisions. This can be augmented by the Project Manager s potential usage of Contract provisions relative to withholding of payment as described in Contract section 7.3.2, Special Withholding. By April 30, 2014, VTA will reiterate contractual obligations regarding schedule submittal requirements to SSH, indicate that based on past performance SSH resources applied to this requirement appear to be insufficient, and make specific recommendations about changes to the SSH organization to improve performance in this area. Original Target Date of Implementation Responsible Party Specific Responsible Individual Carolyn Gonot As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken was considered not implemented Was considered not implemented as no status was received from responsible department. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

183 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 15 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 49 BARTSVSA BARTSVSA 3 05/01/14 The Project Management team should continue to dedicate resources to review the RFC design. SSH should be advised to dedicate the necessary resources to provide current, accurate, and complete RFC drawings. VTA should also work closely between the Project Management team and SSH to help ensure that the review and subsequent questions are facilitated timely. Management concurs. It should be pointed out that the team has been working closely with SSH and has developed a modification to the existing incentive program that is designed to encourage SSH to focus on quality and timeliness of their design submittals. While the contract stipulates review of no more than three design packages in a 21-day period, VTA has dedicated resources to simultaneously review significantly more packages to expedite the process. VTA has fully documented the timeliness and content in all communications relating to design review and resolution of comments to establish a record of VTA and SSH performance on this process. April 30, 2014, VTA will reiterate contractual obligations regarding design requirements to SSH, indicate that based on past performance SSH resources applied to this requirement appear to be insufficient to assure adequate coordination between technical disciplines and design packages, and suggest that changes to the SSH organization might be needed to improve performance in this area. Original Target Date of Implementation Specific Responsible Individual Responsible Party 04/30/14 Carolyn Gonot was considered not implemented As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken Was considered not implemented as no status was received from responsible department. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

184 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 16 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 50 BARTSVSA BARTSVSA 4 05/01/14 SSH should take the appropriate measures to ensure that there is stability by dedicating a team of schedulers to support the scheduling function. Additionally, SSH should also ensure that the accuracy and timeliness of schedule submissions is consistently adhered to, regardless of personnel turnover. To the extent possible, VTA should communicate its dissatisfaction with SSH s inability to provide continuity of personnel. Management agrees. To-date there have been numerous changes in SSH management and in the field support staff that have likely had substantial impacts on scheduling. Directions from upper SSH management about their implementation strategies have not been consistent and the recurring reorganization of staff over the first two years of SSH s contract has not helped with the comprehensive planning for the project s implementation. Although coordination between SSH scheduling and field personnel has greatly improved in recent months, the SSH scheduling group remains understaffed. We do see a risk to timely and complete schedule submissions unless the SSH Scheduling Department staff is increased. As a result, VTA will continue to express its concern in writing and encourage that SSH take steps to ensure the stability and continuity of whoever is assigned to this position. By April 30, 2014, VTA will reiterate contractual obligations regarding scheduling requirements to SSH, indicate that based on past performance SSH resources applied to this requirement appear to be insufficient, and make specific recommendations about changes to the SSH organization that might improve performance in this area. Also, to address the general concern regarding comprehensive planning, VTA will add two additional Field Engineers to the VTA team to coordinate and assure that SSH adequately addresses this issue. Original Target Date of Implementation Specific Responsible Individual Responsible Party 04/30/14 Carolyn Gonot was considered not implemented As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken Was considered not implemented as no status was received from responsible department. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

185 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 17 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 51 BSVIAA BSVIAA 1 11/06/14 We recommend that VTA obtain written assurances and clarifications from the City of Milpitas regarding its commitments under the MA considering the circumstances of the conflicting agreement. VTA agrees. VTA and the City of Milpitas management are coordinating resolution of this issue and are developing the pertinent clarifications regarding the City s commitments under an amendment to the Master Agreement. Although a firm deadline cannot be established due to the complexity of this issue and because the two parties still need to need to reach an amended agreement and obtain City Council approval, VTA has already initiated the process of obtaining written assurances and clarifications from the City of Milpitas and anticipates the process will be completed by the end of February Original Target Date of Responsible Implementation Party 02/28/15 BART SV Program management Specific Responsible Individual Carolyn Gonot As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken was considered not implemented Was considered not implemented as no status was received from responsible department. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

186 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 18 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 52 BSVIAA BSVIAA 2 11/06/14 For future agreements with utilities, VTA should include contract verbiage that specifically defines allowable cost of work by cost element. We also recommend that VTA identify in the agreements any mark-ups, such as allowable overhead and profit. At a minimum, the utility should provide a reconciliation detailing the actual costs incurred to the amount billed. After the utility s proposed cost estimate and cost allocation is reconciled with VTA s independent cost estimate, VTA issues a Notice to Owner authorizing the work to begin. VTA agrees to reimburse the utility for VTA s share of the actual costs of the relocation as indicated in the Notice to Owner. The progress of utility relocation work is monitored by VTA staff, and each progress payment to the utility owner is evaluated against the measured progress. VTA management agrees with the Auditor General s recommendation that for subsequent utility relocation agreements, VTA s process for issuing the Notice to Owner should include more defined cost elements and more specific provisions for making progress payments and for reimbursing the utility for management and administrative costs. VTA will pursue such arrangements when negotiating subsequent utility relocation agreements. To that end, VTA will review and modify applicable policies and procedures to reflect these changes by the end of January Original Target Date of Responsible Implementation Party 01/31/15 BART SV Program management Specific Responsible Individual Carolyn Gonot As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken was considered not implemented Was considered not implemented as no status was received from responsible department. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

187 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 19 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 53 BSVIAA BSVIAA 3 11/06/14 When future agreements are executed, they should include a required billing format with support such that adequate reviews of invoices can be performed. VTA should also consider exercising its right to audit by verifying select Utilities have invoiced based on actual cost incurred. VTA management agrees and will conduct audits of representative samples. Each invoice VTA receives for utility relocation work is reviewed by VTA field and administrative staff to assure that the invoice is commensurate with the actual work performed. The Auditor General s report is correct that in some instance utility invoices did not include adequate supporting documentation. In such instances where VTA staff could not establish the basis of the amounts invoices, VTA has withheld payment until adequate supporting documentation has been provided. VTA management agrees with the Auditor General s recommendation that VTA should exercise its right to audit utility relocation costs, and will conduct audits of representative samples by June 30, Original Target Date of Implementation Specific Responsible Responsible Party Individual Carolyn Gonot 06/30/15 BART SV Program management As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken was considered not implemented Was considered not implemented as no status was received from responsible department. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

188 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 20 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 54 BSVIAA BSVIAA 4 11/06/14 VTA should review the procedures for issuing notices to owners in lieu of contract amendments to confirm that each option is being used appropriately. Where none are present, procedures should be developed so that VTA employees are able to easily make the most appropriate selection in each instance. VTA management agrees. VTA will pursue such arrangements when negotiating subsequent utility relocation agreements. To that end, VTA will review and modify applicable policies and procedures to reflect these changes. The determination for the use of an amendment or a Notice to Owner is based on the usual business practices of each utility. Notice to Owner is a standard business practice for many utilities. For utilities where Notice to Owner is not a recognized practice, an amendment is normally used. VTA management agrees with the Auditor General s recommendation that VTA s process for issuing the Notice to Owner should include defined cost elements and more specific provisions for reimbursing the utility for management and administrative costs. VTA will pursue such arrangements when negotiating subsequent utility relocation agreements. To that end, VTA will review and modify applicable policies and procedures to reflect these changes by the end of January Original Target Date of Responsible Implementation Party 01/31/15 BART SV Program management Specific Responsible Individual Carolyn Gonot As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken was considered not implemented Was considered not implemented as no status was received from responsible department. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

189 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 21 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 55 BSVIAA BSVIAA 5 11/06/14 VTA should review the issue with VTA legal counsel and approach MCI, requesting that it comply with the invoice provision of the contract and provide current actual costs to date. Additionally, cost accruals should be maintained in the project plan and in the financial system to ensure that a large sudden cost does not have a material impact on financial results. VTA management agrees. VTA will approach MCI about bringing their invoices up to date and in line with the VTA/MCI agreement. Also, VTA staff will continue to track the anticipated costs of MCI relocation work. VTA management agrees with the Auditor General s recommendation. Since MCI utility relocations have been difficult to coordinate due to their extensive presence throughout the SVBX Project corridor, VTA management, in coordination with VTA legal counsel, in September 2014 established specific work processes that will regulate the work of MCI and VTA s contractors on site. This should result in bringing MCI s billings up to date and in line with VTA s agreements with MCI. In the meantime, VTA staff continues to track the anticipated costs of MCI relocation work by monitoring the estimated costs of the specific work requested, and by monitoring the on-site activities conducted by MCI. Original Target Date of Responsible Implementation Party 06/30/15 BART SV Program management Specific Responsible Individual Carolyn Gonot As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken was considered not implemented Was considered not implemented as no status was received from responsible department. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

190 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 22 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 56 BSVIAA BSVIAA 6 11/06/14 In future agreements, the Utilities should be required to obtain VTA approval prior to incurring cost that will exceed stated limitations. The agreement should also include a requirement for the Utilities to provide a revised cost estimate, which VTA can approve prior to incurring additional cost. VTA agree to review future utility relocation agreements with VTA counsel to assess whether more specific provisions can be implemented to address the measurement and payment of actual costs. VTA will pursue such arrangements when negotiating subsequent utility relocation agreements. To that end, VTA will review and modify applicable policies and procedures to reflect these changes by the end of January VTA s Notice to Owner is based on an estimate of costs, not lump sum amounts. VTA is obligated to reimburse the utility owner for VTA s share of actual costs. Actual costs cannot be known until the work is completed. The 15% allowance for costs greater than the estimated costs is an administrative convenience that reflects the accuracy of estimated costs. VTA is obligated to reimburse the utility owner for VTA s share of actual costs, including justifiable cost overruns. VTA construction management staff observes the utility relocation work to assure that no unnecessary activities are conducted. If a utility submits an invoice for an amount exceeding 115% of the estimated cost in the Notice to Owner, the invoice is paid only up to the 115% limit until adequate documentation for the cost overrun is received and recognized as valid justifiable costs. VTA agree to review future utility relocation agreements with VTA counsel to assess whether more specific provisions can be implemented to address the measurement and payment of actual costs. VTA will pursue such arrangements when negotiating subsequent utility relocation agreements. To that end, VTA will review and modify applicable policies and procedures to reflect these changes by the end of January Original Target Date of Implementation Specific Responsible Responsible Party Individual Carolyn Gonot 01/31/15 BART SV Program management As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken was considered not implemented Was considered not implemented as no status was received from responsible department. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

191 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 23 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Identification 57 GMCA GMCA 1 05/05/16 Lack of Department Policies and Procedures Governance & Audit Committee review Summary Detailed Summary Detailed The Programming & Grants Department is of vital importance to the VTA. The funding they receive is vital to VTA operations. Because of this, we recommend Programming & Grants develop policies and procedures that cover their various processes. Doing so would help both maintain useful training material for new employees and other VTA employees who work closely with that department Original Target Date of Implementation Responsible Party Specific Responsible Individual John Ristow, Marcella Rensi As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken no implementation date 58 GMCA GMCA 2 05/05/16 File Retention and Organization We recommend that the Programming & Grants house all grants and supporting documents in one common place. SAP doesn't currently have this capability so we suggest a web-based repository. Once this repository is established, all documents should be scanned and uploaded in order to: 1) Reduce the amount of paper on site and in storage. 2) Make documents more easily retrievable and have the ability to be sorted by fiscal year, project number, grant number, etc. 3) make it much easier to comply with VTA's document retention policy. John Ristow, Marcella Rensi no implementation date 59 GMCA GMCA 3 05/05/16 Annual Updates to the Vehicle Registration Fee 15% we recommend VTA require cities to provide more detail and substantiation in their required grant project status reports, especially for future awards. Requiring more substantiation such as photos of project progress gives more Project Status transparency on expenditure of VRF 15% funds. in addition, having cities report semi-annually instead of annually gives VTA more detail and timeliness in monitoring the expenditure of public funds. John Ristow, Marcella Rensi no implementation date C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

192 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 24 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 60 ICIA ICIA 1 05/01/14 Management reclassify TECO4 as a non-key control and remove it from further testing during the audit of key controls. Doing so will save VTA staff time each month, and since the actual control is tested at TECO13 the overall integrity of the control portfolio will not be compromised by the elimination of TECO4 VTA Management agrees. VTA will reclassify TECO4 as a non-key control and remove it from further testing during the audit of key controls. This will be accomplished by the end of September 2013 Original Target Date of Implementation Specific Responsible Individual Responsible Party 09/30/13 Sean Bill, Michael Smith As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken fully implemented 61 ICIA ICIA 2 05/01/14 As stated previously in this report, based on our assessment of associated risk, combined with the fact that no high or medium risk issues have been identified during the four Investment Controls internal audits, we recommend that consideration be given to performing this audit on a slightly longer cycle, perhaps alternating between a two and three-year interval. This would allow reallocation of Auditor General hours to higher-risk areas during the years when the Investment Controls internal audits are not performed. [No management commitment] Sean Bill, Michael Smith fully implemented 62 IPCIA IPCIA /07/15 Convert the existing duplicate control of SSAE 16 report review from the Custodial Agent to the Investment Manager to ensure documented controls cover all Investment process service organizations and their controls. VTA concurs. VTA will update the controls as recommended 05/31/15 Investment Sean Bill, Program Michael Smith Management fully implemented 63 IPCIA IPCIA /07/15 Revise existing controls to require only one level of review of the SSAE 16 report that includes all control objectives. Revising the control will optimize VTA resources, while adequately reviewing the service organization s controls. VTA concurs. VTA will update the controls as recommended 05/31/15 Investment Sean Bill, Program Michael Smith Management fully implemented C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

193 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 25 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 64 IPCIA IPCIA /07/15 Update existing controls to only require the Investment Manager s review and approval of investment journal entries. The revision would result in process efficiencies while effectively mitigating risks related to journal entries. VTA concurs. VTA will update the controls as recommended Original Target Date of Implementation Responsible Party 05/31/15 Investment Program Management Specific Responsible Individual Sean Bill, Michael Smith As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken fully implemented 65 IPCIA IPCIA /07/15 Reclassify the duplicate control as non-key and remove it from further testing during the audit of key controls. Doing so would eliminate control redundancies and result in time savings for VTA process owners without compromising the control portfolio. VTA concurs. TECO-4 will be removed from the investment key control listing. 05/31/15 Investment Sean Bill, Program Michael Smith Management fully implemented 66 OSA OSA /07/15 The current rail vehicle availability is a constraint on operations. We recommend that VTA increase its operating light rail availability target to between 80-90% and evaluate organization needs for achieving the target. With additional light rail vehicle availability, the light rail division will be better prepared for daily AM and PM peaks and special events. Operations has submitted an analysis and staffing plan to create a third LR maintenance shift with the bulk of the employees available on weekends which will increase the amount of preventative and corrective maintenance that can be accomplished. This will lead to fleet availability in the 80 to 90% range as suggested. The implementation of the new light rail service in conjunction with the BART extension opening will require over 80 peak vehicles. For Wrestlemania in March 2015, VTA had 84 LRVs available for service. 08/31/15 David Hill, Deputy Director of Transit Operations David Hill fully implemented A third shift was added which increased rail car availability. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

194 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 26 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 67 OSA OSA /07/15 We were made aware that the procurement process has incredible lead-time and parts were often unavailable for service needs. We recommend that VTA evaluate its existing supply chain management process and establish appropriate processes that would allow the light rail division to calculate the service life of each light rail vehicle, plan for vehicle failures, and have sufficient spare parts to repair nonfunctional vehicles to maintain 90% light rail vehicle availability. Effective and efficient supply chain management supports VTA s need for light rail availability for critical transportation services. The materials management section, previously in Operations, has been reorganized to report directly to Procurement & Contracting Department. This reorganization is streamlining communications and creating inventory ordering improvements. Original Target Date of Responsible Implementation Party 03/31/15 Nuria Fernandez, GM/CEO Specific Responsible Individual Nuria Fernandez fully implemented As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken 68 OSA OSA /07/15 Maintenance staffing levels may be another potential constraint. We recommend an analysis of staffing levels to provide adequate services to ensure vehicle availability is increased. Staffing levels for both LR vehicle maintenance and WP&S have been analyzed and additional staffing has been requested in the upcoming two-year transit operating budget. 05/31/15 Raj Srinath, Chief Financial Officer Raj Srinath fully implemented C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

195 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 27 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Identification 69 OSA OSA /07/15 Conduct costbenefit analysis on implementing regular rostering scheduling Governance & Audit Committee review Summary Detailed Summary Detailed Schedulers currently have difficulty in creating efficient schedules and routes with the modified cafeteria approach. While it would take considerable effort to change existing work rules, including agreement from the ATU, we recommend that VTA conduct a cost-benefit analysis of implementing regular rostering scheduling. Rostering would allow VTA to create pre-packaged schedules, including assigned days off while allowing operators to select packages, as preferred. This could completely remove the group relief packages and result in budget and administrative savings without unduly burdening the operators and relieving constraints on schedulers and office supervisor supports Concur to conduct costbenefit analysis on implementing regular rostering scheduling. Moving from the current modified cafeteria style bidding to regular rostering would be a significant cultural and operational change to the VTA workforce. This would likely require agreement with the ATU and modifications to VTA s scheduling and workforce management software (Trapeze FX and OPS). VTA staff and Trapeze would likely need to run some computerized test scenarios to determine the cost savings of such an approach. This effort could be complicated and time consuming. This change would need to be negotiated with ATU. This will be addressed during the current negotiations with ATU on a new collective bargaining agreement. The other related factors will also be evaluated. Original Target Date of Responsible Implementation Party 04/30/15 Mike Hursh, Chief Operating Officer Specific Responsible Individual Inez Evans As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken not implemented Recent negotiations with ATU did not inlcude changing our bidding to a rostering approach. This would be a significant organizational change that would need to be negotiated and union leadership has indicated that they do not support this change at all. It would be beneficial to have a cost benefit analysis performed. However, group relief rostering is being implemented in July, 2016, which enables this part of the bidding process to move from a manual to an automated process, which is more efficent and saves staff time. 70 OSA OSA /07/15 We recommend that VTA use the same costbenefit analysis above and explore the possibility of removing the union restriction on straight runs. This would provide a more efficient solution for scheduling. VTA management agrees with the recommendation to remove run restrictions that are part of the collective bargaining agreement with ATU. This will be addressed during the current negotiations with ATU on a new collective bargaining agreement. 06/30/15 Mike Hursh, Chief Operating Officer Inez Evans not implemented VTA was not able to achieve through the CBA. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

196 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 28 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 71 OSA OSA /07/15 Quarterly schedule bidding provides operators flexibility in selecting work hours and routes, but lowering the bidding frequency would result in administrative efficiencies and cost savings related to schedule preparation and bidding. We recommend that VTA proposes to change the frequency of schedule bidding from four to three times per year, as well as having date flexibility when operators scheduling bidding occurs and their effective dates. Through these changes, VTA gains process efficiency and flexibility to adjust for service changes such as school schedules, sporting events, holiday events, and other external impacts. VTA management agrees that the recommendation to reduce the frequency of schedule bids from quarterly to three times per year would be more efficient. Again, this would need to be addressed in the collective bargaining agreement with ATU. To make this recommendation most effective, management recommends that the labor agreement be modified to have more flexibility as to when the date of the sign up is effective to adjust for service changes, school schedules and other impacts. Original Target Date of Responsible Implementation Party 06/30/15 Mike Hursh, Chief Operating Officer Specific Responsible Individual Inez Evans As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken not implemented This was not addressed in the last round of ATU contract negotiations. There should be internal discussion on the pros/cons of implementation. If the analysis proved beneficial, then VTA would take its findings to the next round of ATU negotiations. 72 OSA OSA /07/15 We recommend that VTA implement an operator work rule that allows supervisors to operate vehicles in case of emergency situations related to shortage of manpower. This will give VTA more flexibility to handle high volume traffic and congestion areas when necessary, as well as reducing stress on staff operators. VTA management agrees with the recommendation to implement a work rule that allows supervisors to operate vehicles in case of emergencies or shortage of personnel. 06/30/15 Mike Hursh, Chief Operating Officer Inez Evans substantially implemented This recommendation was based upon the shortage of Operators. Operations addressed this by hiring more Operators. It also becomes a Union issue whereas the only time that an Supervisor will operate a train or bus is in an emergency and not in revenue service. 73 OSA OSA /07/15 VTA is well aware that the current staffing levels and requirements for Levi s Stadium Special Events is unsustainable long-term and have recently hired several people to address this. Still, we recommend that VTA evaluate alternative staffing and operation strategies, including the use of part-time operators, possibly creating a new category of operators that can work on bus and rail, and options to augment existing services provided by VTA. VTA management agrees and will investigate other operating personnel deployment strategies (use of part time operators, dual bus/rail operators, etc.) to sustain event operations while continuing to provide effective day to day service. Many potential changes would need union agreement or change in current operating practices, which will be addressed during the current negotiations with ATU on a new collective bargaining agreement. 07/30/15 David Hill, Deputy Director of Transit Operations David Hill not implemented Operations does not have a budget to hire separate staff to handle all Levi's Stadium events. We must continue to use regular staff and absorb all of the costs until a funding source is identified. Operations has adjusted service levels based on event attendance to help with the added costs. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

197 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 29 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 74 OSA OSA /07/15 Due to the scale of special events and Levi s Stadium Service, VTA should consider maintaining the Levi s Stadium Coordinator position to focus solely on special events and Levi s Stadium service and also provide support staff to ensure continued successful event operations in a sustainable manner. Upon resignation of the Levi s Stadium Coordinator, a Transportation Superintendent position was approved and filled to manage Levi s Stadium plus other events such as San Jose Earthquakes games, July 4 th fireworks, etc. The position will also coordinate operational impacts from the VTA and third-party various construction projects impacting VTA light rail and bus operations. A Transit Service Development Supervisor was also recently hired in Service and Operations Planning to lead the complex event service planning. Six new Transportation Supervisor positions were approved to support event days and daily service, and two more are proposed in the FY16 budget. Finally, VTA has initiated a retiree ambassador program, where VTA retirees can return to paid part time status as ambassadors for events, removing work load from other full time staff. Finally, VTA will use these retirees and other trained staff to work the queue teams. We don t see a need to augment our staffing levels with third-party vendors beyond the current use of Allied-Barton and Sheriff s Transit Patrol. Original Target Date of Implementation Responsible Party 09/30/15 Jim Unites, Deputy Director Service & Operations Planning and David Hill, Deputy Director of Transit Operations Specific Responsible Individual Jim Unites, David Hill As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken fully implemented C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

198 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 30 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 75 OSA OSA /07/15 We recommend analyzing a cost-benefit of extending station platforms to accommodate threecar trains, consistent with the rest of the rail system thus improving your ability to handle increased ridership. VTA management agrees that the current Vasona line infrastructure with two car platforms and two single track segments constrains event day operations as well as daily service. The VTA Planning and Project Development Division has a study underway, the Light Rail Enhancement Project, to review a variety of system design and operational strategies that would improve service, ridership and operating speed. Vasona line improvements are only one of many enhancements being studied. The study will consider the cost and benefits of each potential improvement. Future decisions will be made on which improvements to pursue for funding and implementation. The study is targeted for completion by the end of Original Target Date of Implementation Specific Responsible Responsible Party Individual John Ristow 01/31/17 John Ristow, Director, Planning & Programming As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken not due 76 OSA OSA /07/15 The current group relief runs are created manually and have potential for errors, and add unnecessary time and risk to the picking process. We recommend Trapeze OPS be utilized for runcutting group relief work. Management agrees with the recommendation to alleviate the manual process in packaging group relief runs. VTA is currently establishing a scope of work for Trapeze to develop a solution to automate the group relief packaging process. 10/31/15 Joonie Tolosa, Manager, Operations, Analysis, Systems and Reporting Joonie Tolosa substantially implemented C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

199 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 31 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 77 OSA OSA /07/15 Trapeze contains information utilized for a variety of functions, but does not duplicate reports previously available. We recommend establishing a process to create special reports to duplicate previous reports, especially in regards to time worked/not worked. Management agrees with the recommendation. This process has been in place since the June 2014 Trapeze OPS deployment. Development of internal reports is on-going. Report developer staff will continue to reach out to users for reporting requirements. In addition, VTA will engage Trapeze to conduct database structure training for VTA staff. Viewpoint, a business and reporting intelligence tool for OPS, is currently in design review with a target implementation of August This business intelligence tool will provide another layer of reporting solution for Trapeze OPS. Original Target Date of Implementation Specific Responsible Responsible Party Individual Joonie Tolosa 08/31/15 Joonie Tolosa, Manager, Operations, Analysis, Systems and Reporting As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken substantially implemented 78 OSA OSA /07/15 Currently bidding is done manually and Trapeze may have ability to perform this function in a Web-based format. We recommend investigating Trapeze to allow for bidding via the Web, saving time and money. Management agrees with the recommendation. The implementation of web bidding requires ATU participation and extensive changes to administrative procedures and processes. This will be addressed during the current negotiations with ATU on a new collective bargaining agreement. 08/31/15 David Hill, Deputy Director of Transit Operations David Hill not implemented VTA was not able to achieve this through negotiations in the new CBA. The Union's main concern is that not all Operators may be computer literate. 79 OSA OSA /07/15 Current staff was trained on Trapeze, but additional, more specific training would facilitate better performance of job functions. We recommend providing additional training for operations staff, Office Time Technicians and Office Support Supervisors. Management agrees with the recommendation. Training items have been identified and VTA is planning to start these training sessions mid-march In June 2015, VTA also plans to bring Trapeze back onsite for specialized training sessions catered to Operations Superintendents and Supervisors. 06/30/15 Joonie Tolosa, Manager, Operations, Analysis, Systems and Reporting Joonie Tolosa fully implemented C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

200 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 32 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 80 OSA OSA /07/15 Trapeze automates availability of operators for some functions, but some availability is documented manually, such as birthdays and incentive days. We recommend exploring the possibility of implementing this functionality into Trapeze, eliminating a manual process. Management clarified with staff that this item refers to absence (vacation, floating holiday, incentives) quota configuration. This configuration activity is required once a year, before the annual general sign-up in January, and would be the first year VTA utilized Trapeze OPS for this purpose. Management agrees to review the quota configuration process and implement process improvements where necessary. Original Target Date of Responsible Implementation Party 01/31/16 Joonie Tolosa, Manager, Operations, Analysis, Systems and Reporting Specific Responsible Individual Joonie Tolosa As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken fully implemented 81 OSA OSA /07/15 We recommend that VTA investigate CHP log book requirements and discuss the need for this practice, especially with automation of Trapeze and Advanced Vehicle Systems (AVS) systems. If necessary, engage the Board of Directors for possible negotiation and resolution of eliminating requirement. Management agrees with the recommendation. VTA previously engaged CHP regarding this issue 2.5 years ago, which did not result in any substantive improvement to the current process for VTA. VTA believes the underlying issue is that CHP is inconsistently and incorrectly applying this regulation in the transit industry. The preferred solution would be for CHP to not require log books in any form for public transit operators. VTA will approach the CHP again on this issue. 10/31/15 David Hill, Deputy Director of Transit Operations David Hill substantially implemented VTA has included a solution requirement for the log books in the RFP for the new CAD/AVL. This will eliminate the need for Operator Log Books. 82 OSA OSA /07/15 We recommend that VTA investigate the implementation of a new AVS (communication) system that would provide greater accuracy and ability for reporting. Management agrees with the recommendation. The CAD/AVL capital project expected to commence at the end of 2015 includes automation design requirements to replace manual monitoring and collection of information required for the logbooks. The technology design will require CHP consensus. 06/30/15 Joonie Tolosa, Manager, Operations, Analysis, Systems and Reporting Joonie Tolosa not implemented Automated Log Books and/or Automated Vehicle Systems is/are included in the scope of the CAD/AVL replacement capital project. VTA is currently in the negotiations phase of the CAD/AVL procurement. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

201 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 33 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 83 PCPA PCPA 1 05/01/14 We strongly recommend Management explore fully implementing and using the SAP procurement and contracts module. This would allow all documents to be online and easily accessible, tracked and reported upon, which would help remediate current communication gaps. Utilizing the system to its full capabilities would streamline the process, reduce paperwork, allow for online signatures/approvals, simplify workflow and reduce procurement turnaround time. Management concurs. To implement this recommendation, staff will take the following steps: (1) Identify functions within the SAP procurement and contracting modules that have not been implemented, yet are necessary to completely automate the date tracking and reporting functionality; (2) In support of this, staff has initiated development of the prototype workflow process and status reporting functionality in SAP. The first reports using this process will be produced by the close of April 2014; and (3) Initiate the process to procure the services of a third-party contractor to expedite the automation of the procurement and contracting process. Staff will report on the timeline for full implementation at the next (August 28, 2014) Audit Committee meeting. Original Target Date of Implementation Workflow process: 4/28/2014 Report on timeline for full implementation: 8/28/14 Responsible Party Specific Responsible Individual Gary Miskell, Trish Kane As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken substantially implemented Substantially completed with ongoing process improvements (based on AG report). Because of the large undertaking involved with this recommendation, the CAMM group divided this into short and long term goals. To date, CAMM has made substantial progress with the short term items. The longterm item can be classified as ongoing process improvement. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

202 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 34 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 84 PCPA PCPA 2 05/01/14 As a part of recommendation Number 1, we recommend that Management re-evaluate and determine the purpose and function of the contracts and purchasing functions within CAMM. With this, management should: (1) Decide if the CAMM group is a true service department that supports VTA customers, find efficiencies and cost savings while ensuring VTA compliance, or are they just gate-keepers with complete control over this process; (2) Clearly communicate and train all appropriate VTA personnel on the roles and responsibilities so all have a good understanding of the requirements, timeframes, communication channels and expectations in order to simplify the process; and (3) Include tracking and reporting of metrics, (timeframes, budget vs. actual dollars used, renegotiation, etc.) Management concurs. To implement this recommendation, staff will take the following steps: CAMM will obtain needed assistance from VTA s Organizational Development and Training staff to provide guidance, instruction and training to CAMM staff to ensure they understand the service nature of the procurement process and provide the proper level of assistance to CAMM internal customers. With the assistance of internal customer departments, staff will develop a training plan that will communicate and train all appropriate VTA personnel on the roles and responsibilities of both CAMM and the user departments so that there is a clear understanding of the requirements, timeframes, communication channels and expectations in order to simplify the procurement process. Expand the use of e-procurement where possible to expedite the procurement process. As a part of the implementation of the SAP procurement and contracting modules, staff will develop tracking and reporting metrics that provide meaningful information to VTA management and staff. These steps will be completed by the end of October Original Target Date of Implementation Specific Responsible Individual Responsible Party 10/31/14 Trish Kane substantially implemented As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken Substantially completed with ongoing process improvements (based on AG report). Because of the large nature of the recommendation and how several recommendations are linked together, the AG feels this is mostly complete with a couple of items that will be considered ongoing process improvement. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

203 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 35 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 85 PCPA PCPA 3 05/01/14 Since the existing limits have been in place, in some cases for more than 20 years, we recommend Management consider increasing the limits to help streamline the procurement and contracting process. Increasing limits will reduce the amount of review and approvals needed to make basic purchases. Management concurs with this recommendation. To implement, staff will take the following steps: (1) Conduct a review with other similar governmental agencies and assess industry standards for levels of purchasing authority other governmental bodies have delegated to their general manager; (2) Analyze how inflation has eroded current authorization limits since their inception; and (3) Based on that information, staff will recommend increasing the Board authorized delegation of contracting authority if it is determined that such a recommended change would help streamline the procurement and contracting process. Original Target Date of Implementation Specific Responsible Individual Responsible Party 08/31/14 Trish Kane fully implemented As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken After doing analysis of other transit agencies, the GM's approval limit was raised to $500K. The Board approved this change to the VTA Admin Code effective 1/1/15. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

204 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 36 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 86 PCPA PCPA 4 05/01/14 We recommend management thoroughly review and evaluate from the customer s perspective existing policies and procedure to either combine existing documents or replace the current procedures with the CAMM desktop procedures (or something similar) which describe the process and how to comply with the process. This will be especially important if the process is automated as outlined in Recommendation #1. Additionally, CAMM should create a short, easyto-use users guide that clearly describes how to submit the required documents and how to use the SAP functionality. This would allow those customers that rarely use request procurements to submit the proper requirements correctly the first time with little or no help from CAMM staff. Management concurs. To implement this recommendation, staff will take the following steps: (1) Perform a review of existing Policies and Procedures with internal customer departments to update, simplify and make them more user-friendly; and (2) With assistance of outside resources, develop short, easy-to-use user guides to clearly describe how to submit required documents and how to use SAP functionality. These steps will be completed by the end of calendar Original Target Date of Implementation Specific Responsible Individual Responsible Party 12/31/14 Trish Kane substantially implemented As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken AG Report in April 2016 disclosed that this recommendation is substantially completed with ongoing process improvements. This recommendation is highly dependent upon the first recommendation. Once #1 is implemented, this will soon follow. The User Guide is created but not yet implemented. The AG feels this is mostly complete with a few items that are ongoing process improvement. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

205 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 37 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 87 PCPA PCPA 5 05/01/14 We recommend Legal and CAMM Management consider developing a series of standardized contract templates, if not already developed for simple and routine contracts. Legal should write the template to ensure proper terms and conditions are included. Both CAMM and legal would work on a new set of requirements that a contract must meet before it is sent to legal for review. These pre-approved requirements may include contracts over a certain dollar threshold, contracts that are complex or unusual or possibly new or questionable vendors. If the contract does not meet the legal requirements, CAMM would only input the required information and submit it to CAMM management for review and approval. Contracts that would not go to legal for review might include basic or routine items, simple changes or updates in part numbers or pricing, or simple contract renewals. These can be approved within CAMM which will also streamline the process. Management concurs. To implement this recommendation, staff will take the following steps: (1) Work with the VTA General Counsel s Office to develop a process that allows a one-time review of frequently used standard contract documents. Once the standard is approved by Counsel, no further review will be needed if the item does not contain any changes from the standard contract. This step will be completed by August Original Target Date of Implementation Responsible Party 08/31/14 CAMM and Office of the General Counsel Specific Responsible Individual Trish Kane, Rob Fabela As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken not implemented AG report in April 2016 disclosed that this is not fully completed. This recommendation was to improve the turn around time of contracts by establishing standard templates. However, as a precaution, Legal still reviews all contracts. This is an ongoing process and small improvements continue to be made. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

206 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 38 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 88 PCPA PCPA 6 05/01/14 We recommend Management consider having all CAMM personnel become certified in transportation purchasing and contracting through a national accreditation organization, if not already certified. Management concurs with this recommendation. To implement, staff will take the following steps: (1) Determine the requirements to obtain the Certified Purchasing Manager certification as well as other certification achievement that may be appropriate for procurement staff; (2) For appropriate classifications, recruitment bulletins will list CPM credentials as a Desired attribute as well as seek those candidates that have the ability to obtain the CPM designation while employed at VTA; (3) Where appropriate, management will create incentives for obtaining the CPM for those employees/candidates seeking advancement in the CAMM department; and (4) Review and update if necessary, the existing training matrix for CAMM staff. These steps will be completed by the end of August Original Target Date of Implementation Specific Responsible Individual As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken Responsible Party 08/31/14 Trish Kane not implemented AG report in April 2016 disclosed that this is ongoing. Several staff have been identified and are in the process of taking relevant courses to achieve certification. CAMM will determine requirements to obtain the Certified Purchasing Manager. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

207 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 39 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 89 PCPA PCPA 7 05/01/14 We recommend that CAMM management work with VTA s General Manager and other members of executive management to develop a succession plan for key CAMM purchasing and contractsrelated positions that covers the next 3-5 years. Management concurs with this recommendation. To implement, staff will take the following steps: (1) VTA is currently developing a formal, agency-wide Succession Planning program that will meet the needs of CAMM; (2) In the short term, an important consideration is the implementation of cross-training opportunities for staff where feasible, enabling employees to increase their knowledge and skill levels to become proficient in all disciplines within CAMM. This will also allow employees to take on greater responsibilities and ensure that quality service is provided at all levels. These steps will be completed by the end of calendar Original Target Date of Implementation Specific Responsible Individual As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken Responsible Party 12/31/14 Trish Kane not implemented AG status report as of April 2016 disclosed that CAMM is dependent upon VTA succession plan that is currently in development. Once rolled out, CAMM will proceed according to plan. Procurement Manager also indicated that Succession Plan is a long-term effort. However, PCMM has developed a training matrix and continues to provide training opportunities as time and budget allow. Based on an from A. Lara on 5/17/16, there are several staff in PCMM (formerly CAMM) attending courses toward their professional certification. PCMM will perform more formal action after the succession plan framework from HR is firmed up. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

208 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 40 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 90 POA POA /14/15 VTA is responsible for using taxpayer dollars in the most efficient and effective manner possible. This includes ensuring fair and open competition for all contracts. Given that VTA has not completed a competitive bid in over 20 years and VTA s Board of Directors approved the most recent contract agreement that will automatically continue into evergreen status in July 2021, we recommend that VTA obtain independent cost estimates for both ADA brokerage and purchased transportation services to evaluate the program s current costs and competitive market rates. VTA management agrees with the recommendation. The new Regional Transportation Services Manager, who is anticipated being hired shortly, will initiate the process immediately upon hire. He/she will, in partnership with VTA s Procurement & Contracts unit, develop the scope and specifications for the competitive selection process to determine interest and comparative costs. However, the effectiveness of this process is dependent on successful prior implementation of the actions identified in the Auditor General s recommendations for Items 2.1, 2.2, 6.1 and 7.1. Once the corrective actions for these items are completed, VTA will have much clearer information and a better picture to identify the optimal service model. Original Target Date of Implementation Specific Responsible Responsible Party Individual Aaron Vogel 12/31/16 Operations/ Regional Transportation Services Manager As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken not due C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

209 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 41 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 91 POA POA /14/15 We recommend that VTA obtain access to all systems and applications that are utilized by Outreach to deliver ADA paratransit services and develop internal review processes to independently and, on an ongoing basis, verify Outreach-prepared reports and invoices. Without adequate independent review and oversight of Outreach, VTA risks potentially paying inaccurate invoice amounts to Outreach or submitting inaccurate federal transportation data. VTA management agrees to obtain access to systems and applications Outreach uses to deliver paratransit service in order to be independently review and verify Outreachprovided reports and invoices. Arranging for direct access will require amendment of the VTA/Outreach contract as well as potentially a small incremental cost for the software access license(s). Original Target Date of Implementation Specific Responsible Responsible Party Individual Aaron Vogel 03/31/16 Operations/ Regional Transportation Services Manager As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken not implemented 1) VTA has requested direct access via VPN along with contract amendment language - no full agreement or completion to date; 2) Outreach has provided a workstation at their office with Trapeze access, however, they restricted VTA viewing access; 3) Extraction of the productivity database required a non-disclosure agreement that was first signed in March; 4) Staff has been in discussion with software company on ability to transfer or buy full license access, both Trapeze and Outreach refuse this option; 5) $1.4M proposal provide to procure our own identical system. 6) Operations changed target implementation date from 03/31/16 to 08/31/ POA POA /14/15 We also recommend that VTA evaluate the current reports required in the contract to determine critical information needed to oversee operations and performance. VTA should develop internal review controls that ensure consistency in reporting formats and presentation of data. In order to effectively manage operational and financial performance, it is imperative that VTA understand how the information is gathered and reported. In combination with Recommendation 2.1, VTA should be able to effectively oversee ADA paratransit services and reasonably verify that costs incurred by and billed to VTA are accurate. VTA management agrees to review in detail all required reports from Outreach and develop internal review controls and procedures to help ensure consistency in reporting formats and presentation of data. We will ensure that we fully understand how the information is gathered and reported by Outreach, which is a key component in VTA effectively overseeing ADA paratransit services. We will also notify Outreach of any required reports not currently being provided as well as needed changes to existing reports in order to supply VTA with critical information it needs to properly oversee operations and performance. 04/30/16 Operations/ Regional Transportation Services Manager Aaron Vogel not implemented 1) Outreach is now providing reports via dropbox in a central location. 2) Backup reports exceed two hundred documents and staff is currently evaluating which ones are relevant for verifying costs incurred 3) Trapeze ownership is still required to fully verify fuel and ridership information. 4) Staff has started draft procedures for invoice processing and verification. 5) Staff recommends procuring its own Trapeze to eliminate at least 100 reports. 6) Operations changed target date of implementation from 04/30/16 to 06/30/16. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

210 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 42 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 93 POA POA /14/15 In order to ensure that invoiced amounts are accurate and the approximately $20 million paid to Outreach for ADA paratransit services are substantiated, we recommend that VTA require Outreach to provide appropriate supporting documentation with invoices as described in Section 5.5 of the agreement. VTA should have adequate visibility to specific costs elements incurred both directly from Outreach and its thirdparty vendors. It is important that VTA management evaluate how the data is obtained and prepared to ensure information is complete, accurate and reliable for financial and NTD reporting. We also suggest that VTA management review the Auditor General report No and identify source data and documentation required to verify Outreach s stated revenues. VTA management agrees to establish requirements for supporting documentation necessary for invoice reconciliation and resulting payment to Outreach. These requirements will include, but not be limited to, cost drivers such as MV contract costs, Outreach staff expenses, fuel, vehicle maintenance, other vendor services, etc. In addition, a VTA internal procedure will be developed so that VTA staff has clear direction on the requirements for supporting documentation for invoices. Original Target Date of Implementation Specific Responsible Responsible Party Individual Aaron Vogel 03/31/16 Operations/ Regional Transportation Services Manager As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken not implemented 1) Outreach is now providing reports via dropbox in a central location; 2) Backup reports exceed two hundred documents and staff is currently evaluating which ones are relevant for verifying costs incurred; 3) Trapeze ownership is still required to fully verify fuel and ridership information; 4) Staff has started draft procedures for invoice processing and verification; 5) Staff recommends procuring its own Trapeze to eliminate at least 100 reports; 6) AG report no has been reviewed 7) Invoicing procedures are on hold until automated invoicing rolls out in June; 8) Operations changed the Target Date of Implementation from 03/31/16 to 08/31/ POA POA /14/15 Due to the increased risk of inaccurate invoice amounts and lack of visibility to specific expense and revenue elements for ADA paratransit services, we recommend VTA to contractually pursue the elimination of advance payments. Outreach should be required to submit invoices based on actual expenses incurred and revenue generated during a specific period. Revising this process would not only alleviate and streamline the process at VTA, it would also facilitate greater visibility for VTA management and reduce the risk of inaccurate billings. VTA management agrees with the recommendations to eliminate or simplify advance payments and to streamline the invoicing process. Modification of the existing advance payment provision will require amendment of the VTA/Outreach contract. 03/31/16 Operations/ Chief Operating Officer with the assistance of both General Counsel s Office and Contracts and Procurement unit. Inez Evans, Rob Fabela, Trish Kane not implemented 1) Outreach and VTA have had two meetings and three different proposals prepared; 2) This items ties into 3.1, whereas supporting documents needs to be define for payment before payment terms can be agreed upon; 3) Operations changed Target Date of Implementation from 03/31/16 to 08/31/16. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

211 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 43 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 95 POA POA /14/15 Although VTA has an effective budget review, we encourage the organization to evaluate its existing invoice review procedures and process for the paratransit services contract. In order to ensure invoice review is effective at detecting potential errors, VTA must understand the supporting data provided by Outreach as described in Observation 4.1 while also verifying the amounts reported independently. VTA s Accounts Payable manager informed the Auditor General s Office that automation efforts are underway to ensure invoices and support are electronically captured and approval workflows are automated, and we recommend VTA management continue to pursue automation efforts. Not only does automation result in efficiencies during the invoice review process, it facilitates electronic records and control over invoice documentation and changes. VTA management agrees to review and improve its invoice review process including more meaningful scrutiny of invoices and their supporting documentation. VTA also has efforts underway to automate invoice processing. Corrective action for this recommendation is related to and will be accomplished in conjunction with corrective actions for Recommendation 3.1. Original Target Date of Implementation Responsible Party 03/31/16 Operational/ Regional Transportatio n Services Manager in cooperation with the Accounts Payables unit Specific Responsible Individual Aaron Vogel, Ali Hudda, Cathy Quail As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken not implemented 1) Automatic invoicing is currently in design phase until June; 2) Operations changed Target Date of Implementation from 03/31/16 to 07/31/ POA POA /14/15 We recommend that VTA require Outreach to submit all invoices to the attention of AP so all invoices and supporting documentation are formally received and time stamped prior to departmental review. Additionally, any invoice disputes should follow requirements as described in section 5.6 of the agreement between Outreach and VTA. VTA management agrees and has already instituted this recommendation. However, additional changes may be required for the electronic submission process as it relates to Recommendation 3.1 on defining the required supporting documentation for invoices. This may or may not require an amendment to the contract. 12/03/15 Operational/ Regional Transportation Services Manager in cooperation with the Accounts Payables unit Aaron Vogel, Ali Hudda, Cathy Quail fully implemented C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

212 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 44 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 97 POA POA /14/15 In order for VTA to have assurance that the paratransit services budget is reasonable and aligns with actual results, we recommend that VTA management evaluate its existing budgeting process for paratransit services and develop requirements and internal review controls that include trend analysis and substantiation for spending justification. Given the significant costs associated with paratransit and VTA s use of the brokerage model, we recommend that VTA management and Board require the detailed analysis previously described prior to the Board approval of the budget. It is also critical that budget tracking include sufficient detail on a regular basis to ensure detailed cost drivers compared to budget are appropriately investigated and reviewed by VTA management. Without sufficient analysis, VTA may expose itself to unnecessary costs as a result of the brokerage model and its increasing costs, as well as the potential over-utilization of nondedicated transportation providers. VTA management agrees. Operations staff will coordinate with the Finance & Budget Division to review its existing budgeting process for paratransit services and revise as needed to ensure development of the annual/biennial paratransit budget at a sufficient level for VTA Board of Directors review and approval, including trend analysis and other key factors. VTA will also implement an enhanced budget tracking process to ensure costs are appropriately reviewed and justified, which is related to the Recommendation 2.2, 3.1 and 4.1 and thus will be accomplished in combination with the corrective actions for those items. Original Target Date of Implementation 04/30/2016- Implementation of improved budget tracking process. 12/2016- Enhanced paratransit budget development process will be in place for the FY 2018 & FY 2019 VTA Biennial Budget process scheduled to commence late Responsible Party Operations and Finance & Budget Specific Responsible Individual Inez Evans, Carol Lawson, Ali Hudda As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken fully implemented 1) Staff has started reoccurring line by line review of actuals versus budget and separately tracking vendor actuals versus budget 2) Staff is following up on any trends and requesting further information for changes 3) Staff will include more information in the proposed budget going forward which will include major cost drivers such as fuel, labor, vendor and broker costs. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

213 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 45 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 98 POA POA /14/15 The company or organization responsible for managing the ADA paratransit eligibility process inherently serves as a custodian for VTA because the eligibility determination is the primary factor affecting future paratransit costs. Therefore, it is critical that VTA pursue an ADA paratransit model that has sufficient VTA oversight as well as independence between the eligibility and brokerage/transportation service, thus eliminating any potential conflict of interest. Furthermore, we recommend that VTA evaluate the existing eligibility process and benchmark against other eligibility service providers to assess Outreach s current performance metrics. We also suggest VTA complete a cost-benefit analysis of an in-person functional assessment program to determine if a more thorough up-front assessment model would more accurately determine applicant eligibility and protect VTA from potentially incurring costs for ineligible riders. VTA management agrees. It will comprehensively study its complete current paratransit eligibility process. This process will factor in the Auditor General s recommendations to: (1) segregate the eligibility and brokerage/transportation responsibilities; (2) perform a cost-benefit analysis of implementing in-person functional assessments; and (3) benchmark and assess current eligibility performance metrics. It will also take into account industry best practices as well as other factors. Any major changes to the program would require amendment of the contract between VTA and Outreach. Original Target Date of Implementation Specific Responsible Responsible Party Individual Aaron Vogel 12/31/16 Operations/ Regional Transportation Services Manager As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken not due C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

214 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 46 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification 99 POA POA /14/15 For VTA to develop a long-term strategic ADA paratransit fleet management plan, it is critical that the organization have a clear understanding of the current fleet s utilization and capability to meet demand. We recommend that VTA develop an ongoing, sustainable fleet management plan to ensure that VTA vehicles are used optimally and, if possible, Outreach-owned vehicles are no longer used for ADA paratransit services and maintained at the expense of VTA. In addition, we recommend that VTA fully evaluate vehicle acquisition proposals and grants to ensure they meet ADA service needs. VTA management agrees with the recommendation. It will develop a comprehensive paratransit fleet management plan that takes into consideration, among other factors: recent procurements; vehicle utilization and maximization; vehicle type and capacity; hourly/daily/monthly deployment trends including the use of taxis; and changing passenger and operational needs. However, the effectiveness of this process is dependent on successful prior implementation of the actions identified in the recommendations for Items 2.1 and 2.2. Once the corrective actions for these items are completed, VTA will have much clearer information and a better picture to identify the optimal fleet management plan. Original Target Date of Implementation 11/30/2016 (in time for use in the FY 2018 & FY 2019 VTA Biennial Budget process scheduled to commence the end of 2016 as well as development of the next SRTP. Specific Responsible Responsible Party Individual Aaron Vogel Operations/ Regional Transportation Services Manager As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken not due C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

215 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 47 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Identification ## PSPA PSPA /14/15 Evaluate staffing levels, capabilities and composition to ensure best and most efficient use of staffing resources. Governance & Audit Committee review Summary Detailed Summary Detailed VTA should evaluate existing staffing levels and capabilities of law enforcement, private security, and fare inspectors in conjunction with projected needs for BART SV service implementation and ongoing special events, to identify what VTA s ideal staffing levels would be to meet the Board s strategic vision for public safety and accomplishing operating priorities on an ongoing, sustainable basis. VTA should also consider all types of resources that could be utilized (i.e., sheriff technicians in lieu of fare inspectors, since fare inspectors cannot run ID checks and execute law-enforcement tasks, this results in Sheriff s Office staff being taken away from primary responsibilities). Concur. Will evaluate staffing levels, capabilities and composition to ensure best and most efficient use. VTA management concurs with the recommendation. VTA will evaluate staffing levels and capabilities of law enforcement, private security and fare enforcement personnel with projected needs for BART SV service implementation and ongoing special events to identify VTA s ideal staffing levels insuring that we are meeting the Board s strategic vision for public safety and accomplishing operating priorities. VTA management will also consider the best and most efficient use of resources to insure best use of staff available. Original Target Date of Responsible Implementation Party 06/01/16 Manager of Protective Services Programs Specific Responsible Individual Octavio Garcia As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken not due ## PSPA PSPA /14/15 Evaluate contracting out CCTV control room management VTA should formally evaluate the costs and benefits of contracting out CCTV control room management. Based on discussions with members of Protective Services, it is clear that there are benefits to using a VTA employee to manage the CCTV control room. Concur. Will evaluate costs and benefits. VTA management concurs with the recommendation. VTA will evaluate the costs and benefits of staffing the CCTV control room with VTA personnel. 12/31/15 Director of Safety and Security Steve Keller not implemented Cost of permanent VTA employee versus contracted security personnel is prohibitive in current budget cycle. We will continue to evaluate this option and reconsider in next budget cycle. We have impkemented and interim solutions and have worked with Allied Barton to ensure proper staffing is in place. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

216 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 48 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification ## PSPA PSPA /14/15 VTA should evaluate the costs and benefit of requiring Allied Barton security contractors to receive CIT training to ensure its security presence has the adequate skills to effectively deescalate and manage potential crises. VTA should also consider the costs and benefit around both IB and CS training. Such training can enhance the AB security contractors ability to fairly work with passengers, especially in tense or controversial situations. VTA may also benefit by considering the feasibility of AB contractors participating with other law enforcement agencies CIT, IB, and CS training to save on costs. VTA management concurs with the recommendation. VTA will evaluate the costs and benefit of requiring Allied Barton security contractors to receive CIT, IB, and CS training. Original Target Date of Responsible Implementation Party 12/31/15 Manager of Protective Services Programs Specific Responsible Individual Octavio Garcia As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken not implemented Upon review and evaluation the cost and time commitment for having Allied Barton attend a 40 hour CIT course is not feasible. We are working on a solution for a shorter condensed course and are working on implementing the solution. ## PSPA PSPA /14/15 VTA should evaluate whether 24/7 staffing of the CCTV control room would be beneficial. Considerations should include the cost of staffing, other supplementary work that could be performed by security staff working on weekends and nights, and the overall benefit to have real time monitoring and resources to pull video footage immediately when requested. VTA management concurs with the recommendation. VTA will evaluate the costs and benefit of 24/7 staffing of the CCTV control room. 12/31/15 Manager of Protective Services Programs Octavio Garcia substantially implemented The CCTV control room is now staffed 20 hours a day, Monday through Friday and during on staffed time we have implemented an on call procedure to ensure that we have staff available to provide timely response to major incidents that require immediate access to CCTV. This is the most cost effective solution and meets our needs. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

217 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 49 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification ## PSPA PSPA /14/15 VTA should devote resources to eliminate the backlog of incident reports. VTA should also evaluate the manual nature of incident reporting. Process improvements that allow or encourage operators to enter incidents directly into IndustrySafe should be explored. We understand that incident reports need to be reviewed by a Supervisor and there are issues with providing tablets or computer access to operators, but exploring automation opportunities could greatly enhance the speed with which reports are entered into IndustrySafe and available for analysis and reporting. VTA management concurs with the recommendation. VTA will devote resources to eliminate the backlog of incident reports. VTA will also evaluate the manual nature of incident reporting and will explore automation. Original Target Date of Responsible Implementation Party 03/31/16 Manager of Protective Services Programs Specific Responsible Individual Octavio Garcia As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken fully implemented At this time, all incidents including accidents, injuries, criminal activity and security incidents are input into Industry Safe. We continue to exploure automation of this function but we have a workaround in place that is working to keep up to date. ## PSPA PSPA /14/15 VTA should evaluate IndustrySafe reporting to determine if it has sufficient incident reporting capabilities. If it does not, VTA should consider other reporting options such as Crystal reports. If IndustrySafe does have sufficient reporting capabilities, then VTA should evaluate whether the application has effectively been rolled out to all departments and whether additional training should be provided to ensure all users are aware of and employing the full functionality of the application. VTA management concurs with the recommendation. VTA will evaluate Industry safe and determine it capabilities in the area of security related incident tracking, reporting and forecasting. 06/30/16 Director of Safety and Security, Manager of Protective Services Programs, and Principal Safety Auditor Steve Keller, Octavio Garica, Edna Pampy not due C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

218 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 50 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification ## PSPA PSPA /14/15 We recommend evaluating the IndustrySafe audit module to determine if it provides additional functionality that improves the operational efficiency of audit monitoring through automating processes. VTA management concurs with the recommendation. VTA will evaluate Industry safe and determine its capabilities in the area of audit functionality. Original Target Date of Implementation Responsible Party 06/30/16 Director of Safety and Security, Manager of Protective Services Programs, and Principal Safety Auditor Specific Responsible Individual Steve Keller, Octavio Garica, Edna Pampy As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken not due ## PSPA PSPA /14/15 Because of the complexity of providing transit security along the VTA footprint, we recommend evaluating whether a process to periodically assess the need for mutual protocol agreements is necessary. The mutual protocol agreement with the city of San Jose is intuitive because 95% of calls occur within San Jose, but there should be a process to determine if mutual protocol agreements with other municipalities should be pursued. A process that includes periodic assessments provide a mechanism to monitor changing demographics, as well as the VTA footprint, to ensure that mutual protocol agreements are pursued with high value municipalities. VTA management concurs with the recommendation. VTA will evaluate the mutual protocol agreements with overlapping municipalities and/or feasibility of an educational document that defines VTA security responsibilities which could be communicated to other law enforcement agencies. Further, VTA will develop a procedure for periodic review of changing demographics and population within the VTA footprint. 12/31/15 Program Manager of Protective Services and Captain of Transit Patrol Octavio Garcia, David Lera fully implemented VTA, through the Sheriff's Department Transit Patrol has entered an agreement with San Jose PD. VTA will monitor on annual basis changing demographics to determine if any charges are needed or if other MOUs are required going forward. Another approach is consideration of whether an educational document that defines VTA security responsibilities could be created and communicated to other law enforcement agencies. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

219 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 51 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification ## PSPA PSPA /14/15 VTA should evaluate the costs and benefits of a community policing station by assessing best practice security approaches used at other BART stations. VTA management concurs with the recommendation. VTA will evaluate benefits of a community policing station by assessing best practice security approaches used at other BART stations. Original Target Date of Implementation Responsible Party 06/30/16 Program Manager of Protective Services and Captain of Transit Patrol Specific Responsible Individual Octavio Garcia, David Lera As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken not due ## PSPA PSPA /14/15 VTA should evaluate CCTV recording options and work with BART to share CCTV recording data. VTA management concurs with the recommendation. VTA will evaluate CCTV recording options and work with BART to share CCTV recording data 06/30/16 Program Manager of Protective Services and Captain of Transit Patrol Octavio Garcia, David Lera not due ## PSPA PSPA /14/15 Although security response times have not been an issue, VTA should evaluate the service call process to determine if response times should be tracked and reported. Additionally, VTA should evaluate the service call process to determine if the OCC should have a dedicated personnel to manage incoming security calls. VTA management concurs with the recommendation. VTA will evaluate the service call process to determine if response times should be tracked and reported. Further VTA will evaluate the feasibility of having dedicated security personnel in OCC to manage incoming security related calls. 06/30/16 Program Manager of Protective Services and Captain of Transit Patrol Octavio Garcia, David Lera not due C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

220 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 52 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification ## TPFRPA TPFRPA 1 09/03/15 Because VTA is only able to verify Clipper data for transactions on VTA-owned terminals, we recommend that VTA evaluate and select one of the two platforms identified during fieldwork that would allow VTA to access Clipper transaction data. Subsequently, we recommend that VTA develop a process to independently verify Clipper transaction data and reconcile the information to the Clipper Settlement Report. Although neither the MTC database nor the TDS Store account for back office related user data transactions, such as manual adjustments (claims), add value recoveries and auto-load settlement transactions, either alternative selected by VTA would facilitate independent verification of the completeness and accuracy for the majority of Clipper transaction data and enhance VTA s Clipper fare recovery reconciliation process. VTA management concurs that periodic testing of revenue transaction data to confirm that revenue calculations reflect actual ridership data and reconcile to Clipper Settlement Reports will enhance the fare reconciliation process. VTA will select at least three sample days from each of the four quarters of the prior fiscal year and will review all original revenue transactions for the selected sample dates by collecting transaction data directly from the production system with the assistance of staff from MTC and Cubic. Original Target Date of Implementation Responsible Party 06/30/16 Fare Programs and Systems Specific Responsible Individual David Sausjord, Ali Hudda As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken not due ## TPFRPA TPFRPA 2 09/03/15 We recommend VTA management request and review the SOC-1 report provided by Cubic on an annual basis to ensure VTA is familiar with Cubic s internal controls and verify if any testing exceptions documented in the report are relevant to VTA. For example, by VTA reviewing the Cubic SOC-1 report, any items identified that represent a risk of material misstatement would be identified and additional actions on VTA s part could be taken to mitigate the associated risk. VTA management concurs and has implemented the recommendation. The review was conducted by VTA personnel on 3/20/2015 on the latest Cubic SOC-1 Report (covering through 09/01/2013 to 05/31/14) and related bridge letter (through 9/22/2014), noting the relevance of the user considerations tested and reported upon in the SOC-1 report and that no adverse findings were noted that might create increased risk exposure to VTA with respect to Cubic s processes. VTA will review SOC-1 reports and related bridge letters annually. 06/30/15 Fare David Sausjord, Programs and Ali Hudda Systems fully implemented C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

221 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 53 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification ## TPFRPA TPFRPA 3 09/03/15 We recommend that VTA expand its existing review process of the Clipper monthly operating fee invoice to include the verification of the revenue allocation amounts used by MTC to calculate VTA s operating fee against VTA s revenue summary spreadsheet. By including this verification step VTA validates the completeness and accuracy of the calculation basis of its operating fees and increases the likelihood that an inaccurate fee amount would be detected prior to remittance. VTA management concurs and has enhanced the review process as follows: Daily: Monitor and record revenue from Clipper Reports Server (TLF 002 Report). Monthly: Calculate revenue totals from subtotal of daily report work sheets. Compare totals to revenue totals reported in monthly operator report by MTC. Review the monthly cost calculation worksheet from MTC, compare revenue totals used in cost allocation calculations to total from daily work sheets, and calculate VTA percentage share of revenue to confirm accuracy of cost allocation. Original Target Date of Implementation Responsible Party 06/30/15 Fare Programs and Systems Specific Responsible Individual David Sausjord, Ali Hudda As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken fully implemented ## TPIA TPIA /05/15 The current GRC tool rule sets are not regularly nor systematically reviewed by management for applicability to VTA. We recommend VTA management, across all key business processes, review the existing GRC rule sets and update as necessary to appropriately align with business risks. VTA concurs. SAP GRC ruleset will be reviewed and updated. VTA plans to undertake a comprehensive review of the GRC tool rule sets to ensure adequate risk mitigation as well as applicability to VTA, and compatibility with VTA processes and procedures. 12/31/15 VTA Technology and Finance Departments Gary Miskell, Ali Hudda not implemented GRC project will start on 5/23/16 ## TPIA TPIA /05/15 We were made aware that VTA is currently testing automated time entry applications at the time of review. We encourage implementation of an automated timekeeping system and workflow to enhance process efficiencies by: Standardizing time entry and approval process Automating workflow and approval process Eliminating paper records and archival files Reduction of manual errors at various process stages VTA concurs. An automated timekeeping application has been developed and is currently being tested in the Technology and Payroll Departments. Management plans to roll it out enterprise-wide within the next quarter in a phased manner. 06/30/15 VTA Technology and Finance Departments Gary Miskell, Ali Hudda fully implemented C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

222 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 54 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification ## TPIA TPIA /05/15 Because of the complexity of timecard exception pay codes VTA employees, supervisors, and timekeepers frequently have questions on processing timecards. We recommend VTA identify a centralized expert-level function, often referred to as a center of competence, that would be responsible for the communication of timekeeping information throughout VTA. Centralized process ownership facilitates: Ease of access to information Standard implementation of processes Consistent communication of information Clearly defined roles and responsibilities VTA concurs. Management will clarify that Payroll is the primary owner of the timekeeping process, and that Human Resources (HR) is responsible for various personnel actions which affect timekeeping. These HR activities include updating personnel systems to reflect new hires, pay rate changes, promotions, transfers, and separations. The two departments will develop and deploy documentation and training to users in VTA. Original Target Date of Implementation Responsible Party 09/30/15 Payroll and Human Resources Specific Responsible Individual Ali Hudda, Cathy Quail, Alberto Lara As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken fully implemented ## TPIA TPIA /05/15 In addition, we recommend VTA identify best practices for timekeeping and develop standard training for employees, timekeepers, and supervisors. Training should include, but not be limited to: a standard breakdown sheet of pay codes and examples for each union; FAQs and common mistakes; training for collective bargaining agreement (CBA) revisions that affect pay codes; refresher courses, etc. Implementation of standard training would facilitate the following: Consistent implementation of pay codes Reduction of manual re-work by timekeepers and payroll department Increased accuracy of data inputs and remuneration VTA concurs. The timekeeping function is affected by Human Resources functions. Adequate internal control is maintained by segregation of duties within the two functions. Each function owner will develop and deploy training to users in a coordinated and integrated manner. 09/30/15 Payroll and Human Resources Ali Hudda, Cathy Quail, Alberto Lara fully implemented C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

223 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 55 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification ## TPIA TPIA /05/15 We recommend that documentation be developed or updated for key processes and procedures. Developing adequate documentation can support: Standardized process execution, yielding process efficiencies Clear identification of roles and responsibilities Defining of baseline metrics that can be used to monitor and measure process performance Employee accountability to defined standards We recommend primarily focusing on: Standard timerecording and timekeeping procedures Process documentation for Employee Set Up and change processes in SAP, including procedures, as appropriate Updated Payroll Process documentation and development of procedures for key tasks VTA concurs. The documentation prepared to address Recommendations 3.1 and 3.2 will ensure alignment with the current state. Original Target Date of Implementation Responsible Party 09/30/15 Payroll and Human Resources Specific Responsible Individual Ali Hudda, Cathy Quail, Alberto Lara As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken not implemented Payroll has not fully implemented. HR indicated that actions required of their area of responsibility have feen fully implemented. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

224 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 56 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification ## TPIA TPIA /05/15 We recommend that VTA review its document retention practices and ensure appropriate personnel are aware of and trained appropriately on document retention requirement and that ownership of timecard documentation is defined. Implementation of an automated timekeeping system should resolve this issue, but archival documents should be stored appropriately. We recommend consideration of offsite storage for records management (i.e. Iron Mountain) to reduce risk of loss and support compliance with VTA policy. VTA concurs. VTA Technology, working with the General Counsel s Office, will continue to review its records retention policies. Electronic solutions will be emphasized where appropriate. Training to relevant staff on new and revised policies will be administered by VTA s Organizational Development and Training (OD&T) Office. Ongoing guidance and support will be provided by VTA s Records Management Administrator in the Technology Department. Original Target Date of Implementation Responsible Party 09/30/15 VTA Technology Department, Office of the General Counsel, and Organization al Development & Training Specific Responsible Individual Gary Miskell, Rob Fabela, Sylverster Fadal, Mitsuno Baurmeister As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken fully implemented VTA's electronic timekeeping system (etime) has been fully deployed in support of VTA's non-atu staff. OD&T has delivered full classroom training to staff prior to each Business Area rollout. Training materials in both written and A/V form are accessible via VTA's intranet site (the Hub) within OD&T's Training Aids website. etime records are managed per VTA's Records Retention Schedule. etime's business owner is Disbursements Manager. Human Resources is responsbile for FMLA, WOOC, and Lead/Training Pay modules of the etime system. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

225 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 57 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification ## TPIA TPIA /05/15 As also observed in conjunction with the ATU Pension review (reported upon to the Audit Committee in September 2014), we recommend HR review record retention practices and identify critical documents to be stored electronically to reduce reliance on manual/paper processes and ensure compliance with VTA retention policies. VTA concurs. Any updates to improve the document retention policy, focusing on timecard records and electronic solutions, will be made. The policy will then be distributed and relevant staff will receive training. As part of the ongoing enterprisewide effort to update VTA s Records Management Program, HR will digitize appropriate documents and establish schedules for maintenance and destruction of all documents. Original Target Date of Implementation Responsible Party 09/30/15 VTA Technology Department, Office of the General Counsel, and Human Resources Specific Responsible Individual Gary Miskell, Rob Fabela, Sylverster Fadal, Alberto Lara As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken fully implemented 1) In January 2015, the Board of Pensions adopted the retention period for ATU Local 265 Pension Plan records and treatement of original paper records after imaging; 2) In October 2015, Document Control collaborated with Retirement Services to develop a scanning procedure and designed and procured a mobile scanning cart which houses a high-speed production scanner; 3) In Dec 2015, Document Control trained the current Retirement Services staff on operating the mobile scanning cart. This scanning cart is currently "charterd" to the Retirement Services group; 4) Retirement Services' current initiative is to digitize new retiree files going forward; files are currently scanned to a secure server with off-site back-up. All electronic files are fully searchable (OCR) PDF files; 5) Files are audited against a checklist by the Retirement Services to ensure all appropriate files are digitally captured and stored per retenetion schedule requirements. C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

226 Inventory of Recommendations Issued by the Office of the Auditor-General Status of Implementation* As of May 18, 2016 Page 6.10.a 58 of 58 AG Recommended Corrective Action Management Commitment Audit** (please see legend at last page) Governance & Audit Committee review Summary Detailed Summary Detailed Identification ## TPIA TPIA /05/15 Although VTA can request but not compel its employees to elect direct deposit for payroll, we recommend management evaluate alternatives to live payroll paychecks that are in compliance with all applicable laws and regulations. Implementation of an automated solution, such as employer-sponsored payroll cards, that aligns with the existing direct deposit payroll process could result in the following: (1) Enhanced process (2) Cost reduction to VTA VTA concurs. Although 87% of VTA s employees receive their pay through direct deposit, VTA will continue to work with employee bargaining units to increase this metric. HR will work with employee bargaining units to improve the rate of participation. In addition, HR, as part of new employee on boarding, will encourage participation by discussing the advantages to both the employee and VTA. Original Target Date of Responsible Implementation Party 12/31/15 Human Resources Specific Responsible Individual Sylvester Fadal, Alberto Lara As of May 18, 2016, Implementation Status* Reason(s) for non-implementation Actions Taken substantially implemented * Based on representations made by responsible individual/department ** Legend: ARBRTPDA Alum Rock Bus Rapid Transit (BRT) Project Delay Assessment ATUPPCA ATU Pension Plan Compliance Audit BARTCAA BART Comprehensive Agreement Assessment BARTSVIAABART SV Interagency Agreement Assessment BARTSVSA BART Silicon Valley (SVBX) Schedule Assessment GMCA Grants Management & Compliance Assessment ICIA Investment Control (2013) Internal Audit IPCIA Investment Program Controls Internal Audit (FY15) OSA Operator Scheduling Assessment PCPA Procurement & Contracting Process Assessment POA Paratransit Operation Assessment PSPA Public Safety Process Assessment TPFRPA Third-Party Fare Reporting Process Assessment TPIA Timekeeping & Payroll Internal Audit Color coding of Implementation Status: No fill - not due for implementation or no implementation date provided Fully implemented Substantially implemented Not implemented Compiled by: Grace S. Ragni C:\grace\audits\internal audit\follow up\for submittal\att3 MASTER highlighted xlsx

227 6.11 Date: July 27, 2016 Current Meeting: August 4, 2016 Board Meeting: August 4, 2016 BOARD MEMORANDUM TO: THROUGH: FROM: Santa Clara Valley Transportation Authority Board of Directors General Manager, Nuria I. Fernandez Chief Financial Officer, Raj Srinath SUBJECT: Scope of Work for Annual Financial Audit Services for Fiscal Year 2016 BACKGROUND: FOR INFORMATION ONLY Pursuant to state law and the Administrative Code of the Santa Clara Valley Transportation Authority (VTA), Vavrinek, Trine, Day & Company, LLP (VTD), has been retained as the independent Certified Public Accountant, to conduct the audit of VTA financial statements for Fiscal Year The scope of VTD s services includes the following: Conduct the financial statement audit and render an opinion on the: VTA General-purpose Financial Statements VTA - Amalgamated Transit Union (ATU) Pension Plan VTA Schedule of Expenditures of Federal Awards (Single Audit) Other Post Employment Benefit Report Perform internal control assessment over financial reporting based on the audit of the financial statements Perform compliance audit with requirement of the Transportation Development Act Perform agreed-upon procedures with regard to the data reported in the VTA s Annual National Transit Database (NTD) Perform grant-required audits DISCUSSION: VTD has performed the audit of VTA s financial statements for Fiscal Years 2006 through North First Street San Jose, CA Administration Customer Service

228 6.11 They have conducted their audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in the Government Auditing Standards, issued by the Comptroller-General of the United States. Presented below are VTD s timeline and deliverables relating to the Fiscal Year 2016 audit engagement: May 2016 Internal control assessment and testing Cash receipts and disbursements sample testing Payroll sample testing Preliminary evaluation of the Schedule Expenditure of Federal Awards Preliminary survey of procedures relative to development of VTA s Indirect Cost Allocation Plan August to October 2016 Performance of audit field work November 2016 Presentation of the 2016 Comprehensive Annual Financial Report, VTA-ATU Pension Plan Report and the Other Post Employment Benefit Report to the Governance and Audit Committee on November 3, 2016 STANDING COMMITTEE DISCUSSION/RECOMMENDATION: The Governance & Audit Committee considered this item on June 2, The Committee unanimously recommended the item be forwarded to the VTA Board of Directors. Prepared By: Grace S. Ragni Memo No Page 2 of 2

229 6.12 Date: July 7, 2016 Current Meeting: August 4, 2016 Board Meeting: August 4, 2016 BOARD MEMORANDUM TO: THROUGH: FROM: SUBJECT: Santa Clara Valley Transportation Authority Board of Directors General Manager, Nuria I. Fernandez Director of Government Affairs, Jim Lawson Legislative Update Matrix FOR INFORMATION ONLY BACKGROUND: The Legislative Update Matrix describes the key bills that are being considered by the California State Legislature during the second year of the regular session, as well as during the special session called by Gov. Jerry Brown to address issues related to transportation funding. The matrix indicates the status of these measures and any VTA positions with regard to them. DISCUSSION: The purpose of this report is to provide an update on recent developments concerning important transportation issues facing lawmakers in Sacramento. FY 2017 Budget: On June 27, Gov. Brown signed into law the FY 2017 Budget Act, as well as a number of trailer bills that enact policy changes needed to implement the budget. In general, the budget lays out a rather cautious approach that restrains growth in spending, while paying down debt and other liabilities. It reflects increases in expenditures resulting from the following: (1) passage of a managed care organization financing package that solidifies funding for Medi- Cal over the next three years; (2) additional funding commitments for services for the developmentally disabled; (3) higher payments to Medi-Cal and child-care providers; (4) passage of legislation raising the statewide minimum wage; (5) subsidies for low-income housing; and (6) new investments in prison construction. The FY 2017 budget is the second to occur since the passage of Proposition 2 in November This complex ballot measure significantly alters how the state saves money and uses its budget reserves. It sets a constitutional goal of having 10 percent of the state s General Fund tax revenues in a Rainy Day Fund (technically known as the Budget Stabilization Account), as well as requires certain one-time surplus revenues to be directed to the fund. In adopting the 3331 North First Street San Jose, CA Administration Customer Service

230 6.12 budget, the Legislature concurred with Gov. Brown s recommendation to deposit $2 billion more than the amount required under Proposition 2 in the Rainy Day Fund, boosting its balance to $8 billion or 54 percent of the constitutional target. The prior-year budget was the last one to include the complete pieces of Proposition 30, which imposed an income tax surcharge on wealthier Californians and raised the state sales tax rate by one-quarter of 1 percent. The sales tax increase is scheduled to expire at the end of this calendar year. This loss of money is reflected in the FY 2017 budget. Meanwhile, the income tax surcharge would conclude at the end of the 2018 tax year. There is a measure on the November general election ballot to extend this surcharge for an additional 12 years. Barring any significant changes, the budget is balanced for now. However, beginning in FY 2019, General Fund commitments are expected to exceed anticipated revenues, resulting in annual shortfalls of $4 billion, without taking into account a likely economic slowdown or recession. Even if the voters were to approve the November ballot measure to extend the Proposition 30 income tax surcharge, the longer-term outlook for the General Fund is precarious. Mainly because cap-and-trade continues to be in a state of flux, the FY 2017 budget does not address this subject. Gov. Brown s January budget recommendations did include a $2 billion estimate for cap-and-trade revenues expected to be generated from four allowance auctions that will be held by the California Air Resources Board (CARB) in FY However, that estimate is being called into question as the Governor and lawmakers wring their hands over the results of the fourth quarter allowance auction for FY 2016, which was held by CARB on May 16. From this auction, the state realized just 2 percent of the money that had been projected. The immediate concern is whether the May auction was an aberration or a sign of things to come. An analysis conducted by the Brown Administration identifies the legal and political uncertainties surrounding cap-and-trade s future, and a glut of emissions allowances available in the secondary market for prices well below the state s minimum price as the key factors that influenced the May auction. Specifically, there are reports that the courts may soon rule on a pending lawsuit filed by a coalition of business groups led by the California Chamber of Commerce seeking to have the state s cap-and-trade system invalidated. These groups contend that cap-and-trade is not a regulatory mitigation fee, but rather an illegal tax because the Global Warming Solutions Act (AB 32), the 2006 bill underlying the creation of the system, was not approved by a two-thirds vote of the Legislature. Numerous regulated entities may have held off purchasing emissions allowances at the May auction based on an assumption that the courts could rule in favor of the business groups. Furthermore, because cap-and-trade is tied to achieving a 2020 emissions reduction goal, there is some uncertainty as to whether the system can legally exist beyond that year. The Brown Administration contends that because the stated intent of the Global Warming Solutions Act is to maintain and continue reductions in emissions of greenhouse gases beyond 2020, cap-andtrade can be extended through the adoption of regulations by CARB. The Legislative Counsel s Office, however, has opined that cap-and-trade needs to be reauthorized by the Legislature. SB Page 2 of 7

231 (Pavley) was intended to provide such authorization when it was introduced last year. The bill has since been amended to require CARB to approve a statewide greenhouse gas emissions limit equivalent to 40 percent below the 1990 level to be achieved by 2030, but it does not extend the market-based compliance mechanism provisions in Global Warming Solutions Act, which were used by CARB to set up the state s cap-and-trade system. Meanwhile, the glut of emissions allowances continues to build, as speculators dump allowances in the secondary market for fear that they may become worthless if CARB is forced to shut down the cap-and-trade system after Calculations show that California may have an oversupply of available allowances exceeding 250 million tons, or roughly the equivalent of three quarterly auctions. CARB is considering various strategies to bring the supply of allowances into closer balance with demand. Under current law, cap-and-trade auction proceeds are deposited into the Greenhouse Gas Reduction Fund and are distributed according to an investment framework that was established in 2014 through the enactment of SB 862. Under this framework, 60 percent of all cap-and-trade money is continuously appropriated, requiring no action on the part of the Legislature. The programs that receive continuous appropriations are as follows: 5 percent to the Low Carbon Transit Operations Program = $100 million based on the Governor s $2 billion January estimate. This formula-based program provides operating and capital assistance to public transit agencies to reduce greenhouse gas emissions, improve mobility, and enhance or expand service to increase mode share. Under this program, funding flows to public transit agencies according to the State Transit Assistance Program (STA) formula. If a public transit agency s service area includes disadvantaged communities, at least 50 percent of its funding must be used for projects or services that benefit those communities. Caltrans is the grant administrator for the Low Carbon Transit Operations Program. 10 percent to the Transit and Intercity Rail Capital Program = $200 million. This competitive grant program is intended to fund transformative capital improvements that reduce greenhouse gas emissions, and modernize intercity, commuter and urban transit systems. The California State Transportation Agency (CalSTA) is responsible for selecting the projects to be funded, while the California Transportation Commission (CTC) administers the grants. At least 25 percent of the money allocated to the Transit and Intercity Rail Capital Program must be spent in a way that benefits disadvantaged communities. 20 percent to the Affordable Housing and Sustainable Communities Program = $400 million. This program provides grant funds on a competitive basis for projects that reduce greenhouse gas emissions through the implementation of land-use, housing, transportation, and agricultural land preservation practices that support infill and compact development. The Strategic Growth Council is responsible for administering the program. There is a requirement that at least 50 percent of available funding be expended to benefit disadvantaged communities. In addition, at least half of the money must be expended for affordable housing projects. Page 3 of 7

232 percent to High-Speed Rail = $500 million. In the near term, the California High- Speed Rail Authority plans to use these funds for construction of the initial piece of the state s proposed high-speed train system in the Central Valley, and for further environmental and design work related to other segments of the project. The remaining 40 percent of cap-and-trade funding is uncommitted and subject to annual appropriations by the Legislature. However, for the second straight year, an agreement on how to distribute these auction proceeds was not reached during budget negotiations. It is expected that legislative leaders will hold off on adopting any expenditure plan for these revenues until after the next allowance auction, which is schedule for August 16. This auction will be the first one conducted in FY Meanwhile, any uncommitted cap-and-trade auction proceeds will remain in the Greenhouse Gas Reduction Fund until the Legislature takes action to appropriate them. Currently, $1.4 billion in prior-year money is sitting in the fund. It is worth noting that Gov. Brown is recommending that $400 million of the uncommitted money be used to augment the Transit and Intercity Rail Capital Program and that $100 million be appropriated for a new Low Carbon Roads Program. While the Assembly concurred with the Governor s recommendations, the Senate did not. State Transit Assistance Program (STA): STA was created through the enactment of the Transportation Development Act in the early 1970s. Funding for the program is derived solely from the sales tax on diesel fuel. Therefore, the amount of money available for public transit operators varies from year to year based on the ups and downs of diesel fuel prices. The FY 2017 budget includes an estimate of $267 million for STA, down from $298 million in FY The State Controller s Office is responsible for allocating STA dollars to the 26 regional transportation agencies in California. These agencies suballocate the funds to public transit operators within their respective jurisdictions. For most of the life of STA, public transit operators and regional transportation agencies have understood the following: 50 percent of all STA funding flows from the Controller s Office to regions based on the ratio of the population of each region to the population of the state. Each regional transportation agency has the discretion to determine how to suballocate these population-based dollars to public transit operators within its jurisdiction. 50 percent of all STA funding flows from the Controller s Office to regions based on the ratio of the locally generated revenues of each public transit operator in each region to the locally generated revenues of all public transit operators in the state. Each regional transportation agency is required to suballocate these revenue-based dollars to public transit operators within its jurisdiction based on the specific operator ratios published by the Controller s Office. The definition of transit operator used by the Controller s Office to generate a list of eligible STA recipients each year means an agency providing transportation services to the general public for which a fare is collected. Page 4 of 7

233 6.12 Late last year, the Controller s Office reinterpreted the statutes and regulations governing STA, and implemented significant changes to how STA revenue-based funds are to be distributed without any opportunity for legislative or public review and comment. In general, the Controller s Office broadened the definition of transit operator, adding more than 100 new entities to the list of eligible recipients of STA revenue-based funds, and expanded the types of locally generated revenue sources that could be used to calculate a public transit operator s revenue-based share. These controversial changes went into effect starting with the first quarter allocations for FY They have resulted in a shifting of STA revenue-based funds not only between different regions of the state, but also between different public transit operators within each region, thereby creating winners and losers up and down the state. In response to this situation, language has been included in the transportation budget trailer bill requiring the Controller s Office to use the same list of eligible recipients and the same proportional shares from the fourth quarter of FY 2015 to distribute any unallocated FY 2016, and all FY 2017 and FY 2018 revenue-based funds. This bill has not yet passed the Legislature. The transportation budget trailer bill is considered to be a short-term solution. The California Transit Association is in the process of developing language for a follow-up policy bill to fix the ambiguities in the current STA statutory and regulatory framework that caused the Controller s Office to depart from the longstanding methodology for distributing revenue-based funds. Bills of Interest: July 1 was the deadline for bills to be approved by policy committees in the opposite chamber. Measures of interest that are still alive are as follows: AB 516 (Mullin) calls for developing a statewide temporary license plate system to ensure that purchased vehicles are identifiable to law enforcement officials and agencies that operate toll facilities during the period between the point-of-sale and when permanent plates are received by the buyer. AB 1550 (Gomez) requires the three-year investment plan prepared by the Department of Finance for the expenditure of cap-and-trade auction proceeds to do the following: (1) allocate a minimum of 25 percent of available dollars in the fund to projects located within the boundaries of, and benefitting individuals living in, disadvantaged communities; and (2) allocate a minimum of 20 percent of available dollars to projects that benefit low-income households, which must be separate from the minimum 25 percent required for disadvantaged communities. Under current law, a minimum of 25 percent of available capand-trade auction proceeds must be expended for projects that benefit disadvantaged communities, with 10 percent required to be located within such communities. AB 1640 (Stone) seeks to resolve any ambiguity in current state law relating to the retirement status of public transit employees hired between January 1, 2013, the effective date of the Public Employees Pension Reform Act of 2013 (PEPRA), and December 30, 2014, the date the District Court, Eastern Division of California, ruled against the U.S. Department of Labor for relying on PEPRA to withhold certification of a federal grant for the Sacramento Regional Transit District (SacRT). These employees were hired during a period when public Page 5 of 7

234 6.12 transit was exempt from PEPRA pursuant to AB 1222 (Bloom). Specifically, AB 1640 clarifies that these individuals are exempt from PEPRA for the duration of their employment, and that their retirement benefits were not intended to change on December 30, 2014, when the PEPRA exemption for public transit employees ended as a result of the District Court decision. AB 1964 (Bloom) modifies the state s Clean Vehicle Program, which enables certain lowemission vehicles to access carpool lanes with a single occupant. Specifically, this legislation: (1) eliminates the 2019 sunset date for green stickers, but retains this sunset date for white stickers; (2) eliminates the 85,000 cap on the number of green stickers that can be issued by the Department of Motor Vehicles (DMV); (3) sets several expiration dates for green stickers, depending on when a sticker is issued; and (4) prohibits the DMV from issuing green stickers if the sale of eligible vehicles reaches at least 9.2 percent of the total new car market share for two consecutive years. AB 2170 (Frazier) requires federal funds apportioned to California from the National Highway Freight Formula Program established by the Fixing America s Surface Transportation (FAST) Act to be allocated by the CTC for projects pursuant to the process that was used for the Proposition 1B Trade Corridors Improvement Fund. AB 2196 (Low) makes a series of technical, clean-up changes to VTA s enabling statutes that are intended to update provisions that are outdated, delete provisions that are obsolete or inoperable, and modify provisions that are unclear or inconsistent. In addition, AB 2196 adjusts certain VTA bidding thresholds for materials, supplies and equipment contracts to match federal procurement thresholds. AB 2374 (Chiu) clarifies that VTA and other regional transportation agencies, as defined, may use the Construction Manager/General Contractor (CMGC) delivery method to design and construct projects on expressways and roadway ramps that are not part of the state highway system. SB 824 (Beall) incorporates a few more tools and as much flexibility as possible into the Low Carbon Transit Operations Program to allow public transit agencies to more effectively manage and utilize their formula shares. The modest changes proposed by this bill would allow public transit agencies to maximize reductions in greenhouse gas emissions by expending their formula shares in a way that makes the most sense for their individual systems and their unique set of circumstances. The legislation also includes a few administrative streamlining provisions. SB 882 (Hertzberg) prohibits a public transit agency from charging a minor with an infraction or misdemeanor for acts of fare evasion. While this bill decriminalizes fare evasion by minors, public transit agencies would still be able to levy fines and penalties against minors for such acts through an administrative adjudication process. SB 998 (Wieckowski) prohibits motorists from parking, stopping or driving in a roadway lane that has been designated for the exclusive use of public transit buses. While the Vehicle Page 6 of 7

235 6.12 Code prohibits motorists from parking, stopping or leaving their cars at a curbside bus stop, there are no comparable provisions in state law relating to bus-only lanes. SB 998 corrects this deficiency, so that public transit agencies would be able to address situations where motorists are inappropriately using bus-only lanes and obstructing the operation of their bus rapid transit (BRT) service. Prepared By: Kurt Evans, Government Affairs Manager Memo No Page 7 of 7

236 102B LEGISLATIVE UPDATE MATRIX State Legislative Session 2BJuly 8, a 2016 Regular Session Calendar DAY 4BJANUARY 1 Statutes signed into law in 2015 take effect. 4 Legislature reconvenes. 10 Budget must be submitted by the Governor to the Legislature on or before this date. 15 Last day for policy committees to hear and report fiscal bills introduced in their house of origin in Last day for any committee to hear and report to the floor bills introduced in their house of origin in Last day to submit bill requests to the Legislative Counsel s Office. 31 Last day for bills introduced in 2015 to be passed out of their house of origin. DAY 5BFEBRUARY 19 Last day for new bills to be introduced. DAY MARCH 17 Spring Recess begins upon adjournment. 28 Legislature reconvenes from Spring Recess. DAY 6BAPRIL 22 Last day for policy committees to hear and report fiscal bills introduced in their house of origin in DAY 8BJUNE 3 Last day for bills introduced in 2016 to be passed out of their house of origin. 15 Budget must be passed by midnight. 30 Last day for legislative measures to qualify for placement on November 8 general election ballot. 41BDAY 9BJULY 1 Last day for policy committees to hear and report bills introduced in the other house. Summer Recess begins upon adjournment, provided that the Budget Bill has been enacted. DAY 10BAUGUST 1 Legislature reconvenes from Summer Recess. 12 Last day for fiscal committees to hear and report to the floor bills introduced in the other house. 19 Last day to amend bills on the Assembly and Senate floors. 31 Last day for each house to pass bills. Final Recess begins at the end of this day s session. DAY 1BSEPTEMBER 30 Last day for the Governor to sign or veto bills passed by the Legislature before September 1, and in his possession on or after September 1. DAY 7BMAY 6 Last day for policy committees to hear and report to the floor non-fiscal bills introduced in their house of origin in Last day for fiscal committees to hear and report to the floor bills introduced in their house of origin in DAY 12BDECEMBER Regular Session convenes Legislative Update Matrix Page 1 of 55

237 6.12.a State Assembly Bills State Assembly Bills Subject Last Amended Status VTA Position AB 12 (Cooley) State Agency Regulations By January 1, 2018, requires each state agency to do all of the following: (1) review all provisions of the California Code of Regulations adopted by that state agency; (2) identify any regulations that are duplicative, overlapping, inconsistent, or out-of-date; and (3) adopt, amend or repeal regulations to reconcile or eliminate any duplication, overlap, inconsistencies, or out-of-date provisions. 8/19/15 Senate Appropriations Committee AB 51 (Quirk) Motorcycles: Lane Splitting Defines lane splitting to mean driving a motorcycle that has two wheels in contact with the ground between rows of stopped or moving vehicles in the same lane, including on divided or undivided streets, roads or highways. Authorizes the California Highway Patrol (CHP) to develop educational guidelines relating to lane splitting in a manner that would ensure the safety of the motorcyclist, and the drivers and passengers of the surrounding vehicles. 6/1/16 Senate Floor AB 197 (E. Garcia) Joint Legislative Committee on Climate Change Policies Provides for the appointment of one senator by the Senate Rules Committee and one Assemblymember by the Speaker to serve as ex-officio, non-voting members of the California Air Resources Board (CARB). Creates the Joint Legislative Committee on Climate Change Policies to ascertain facts and make recommendations to the Legislature concerning the state s programs and policies related to climate change. Requires CARB to consider adopting measures to achieve the state s greenhouse gas emissions limits based on the following priority: (1) measures the result in direct reductions in the emissions of greenhouse gases from large stationary sources, such as oil refineries, and from the transportation sector in the most technologically feasible and cost-effective manner possible that account for the societal costs of the emissions of greenhouse gases; and (2) measures that result in direct reductions in the emissions of greenhouse gases from other sources in the most technologically feasible and cost-effective manner possible that account for the societal costs of the emissions of greenhouse gases. Requires CARB to rank all emissions reduction measures based on both of the following: (1) the reductions in emissions of greenhouse gases, criteria pollutants and toxic air contaminants resulting from the implementation of the measure; and (2) the cost-effectiveness of the measure. 6/8/16 Senate Environmental Quality Committee Legislative Update Matrix Page 2 of 55

238 6.12.a State Assembly Bills Subject Last Amended Status VTA Position AB 318 (Chau) Lost Items Found on Public Transit Property If a lost or unclaimed item worth $100 or more in value is found on a vehicle or the property of a public transit agency, requires the person who found the item to turn it in to the public transit agency, rather than to law enforcement. Provides 90 days for the owner of the item to reclaim it from the public transit agency. Allows the public transit agency to require payment by the owner of a reasonable charge to defray the costs of storage and care of the property. If the reported value of the item is $250 or more, and no owner appears and proves his or her ownership of the item within 90 days, requires the public transit agency to cause notice of the item to be published at least once in a newspaper of general circulation. If, after seven days, no owner appears and proves his or her ownership of the item, and the person who found or saved the item pays the cost of the publication, provides that the title shall vest in that person. If the item was found in the course of employment by an employee of the public transit agency, requires the item to be sold at public auction. If the reported value of the item is less than $250, and no owner appears and proves his or her ownership of the item within 90 days, provides that the title shall vest in the person who found the item. If the item was found in the course of employment by an employee of the public transit agency, requires the item to be sold at public auction. Applies all of the following with respect to lost or unclaimed bicycles turned in to or held by a public transit agency: (1) if the owner of a bicycle appears within 45 days after receipt by the public transit agency, proves his or her ownership, and pays all reasonable charges, requires the public transit agency to restore the bicycle to the owner; (2) if the bicycle remains unclaimed after 45 days, allows the public transit agency to dispose of it by sale at a public auction to the highest bidder; (3) requires the public transit agency to give notice of the sale at least five days prior to the auction by publication in a newspaper of general circulation in the county in which the bicycle was found; (4) if a bicycle remains unsold after the auction, allows the public transit agency to destroy or otherwise dispose of it; and (5) allows a public transit agency to donate an unclaimed bicycle after 45 days to a charitable organization if the agency s board of directors holds a public hearing to determine the organization that would receive the bicycle and the agency provides notice at least five days prior to the donation by publication in a newspaper of general circulation in the county in which the agency operates. Prohibits a public transit agency from donating unclaimed bicycles more than two times per calendar year. Provides that the number of bicycles donated shall not exceed 25 percent of the total number of lost or unclaimed bicycles found or saved by the public transit agency during the prior six months. Requires any public transit agency that donates unclaimed bicycles to a charitable organization pursuant to the provisions of this bill to submit a report, as specified, to the Assembly and Senate Judiciary Committees by January 1, Repeals all of the provisions of the bill on January 1, /11/15 Senate Judiciary Committee Legislative Update Matrix Page 3 of 55

239 6.12.a State Assembly Bills Subject Last Amended Status VTA Position AB 338 (R. Hernandez) LA Metro: Local Transportation Sales Taxes In addition to any other tax that it is authorized to impose or has imposed, allows the Los Angeles County Metropolitan Transportation Authority (LA Metro) to impose a transactions and use tax at the rate of 0.5 percent for a period not to exceed 30 years that would be applicable in the incorporated and unincorporated areas of Los Angeles County. Requires the ordinance imposing the tax to contain the following: (1) an expenditure plan that lists the transportation projects and programs to be funded from net revenues from the tax; (2) a requirement that the expenditure plan include measures to ensure that net revenues are share equitably between regions of the county; (3) a provision limiting LA Metro s costs of administering the ordinance and the net revenues from the tax to 1.5 percent of the total tax revenues; (4) a requirement that the net revenues from the tax, defined to mean the total tax revenues less any refunds, costs of administration by the state Board of Equalization and LA Metro s administrative costs, be used to fund the transportation projects and programs identified in the expenditure plan; (4) a requirement that LA Metro, during the period that the ordinance is operative, allocate 20 percent of all net revenues from the tax for operating costs associated with bus service provided by LA Metro and the municipal transit operators in Los Angeles County; and (5) a requirement that LA Metro, during the period that the ordinance is operative, allocate 5 percent of all net revenues from the tax for rail operations. Requires LA Metro to notify the Legislature prior to taking action on any amendments to the adopted expenditure plan. Provides that the ordinance shall become operative if approved by a two-thirds vote of the electorate in Los Angeles County. Authorizes LA Metro to incur bonded indebtedness payable from the net revenues of the tax. 4/13/15 Senate Transportation & Housing Committee AB 516 (Mullin) Temporary License Plates No later than January 1, 2019, requires the Department of Motor Vehicles to develop and implement an operational system that allows a vehicle dealer or lessor-retailer to electronically report the sale of a vehicle and provide a temporary license plate. Requires the dealer or lessorretailer to attach a temporary license plate at the point of sale. Allows a vehicle to operate with temporary license plates until either: (1) the permanent license plates and registration card are received by the vehicle owner; or (2) 90 days have lapsed from the vehicle s selling date. Allows a vehicle to continue to display a report-of-sale form or temporary license plates after 90 days if the owner provides proof that he or she has submitted an application to the DMV, and it has been no more than 14 days since the permanent license plates were issued to the owner. Requires the DMV to assess a fee for the recording of notices of delinquent parking and toll evasion violations given to the department by a processing agency that is sufficient to provide a total amount equal to at least its actual costs related to administering the electronic report-of-sale and temporary license plate system. Beginning January 1, 2019, authorizes vehicle dealers to raise their document processing fees by $5. In addition, allows vehicle dealers to impose an electronic filing charge for reporting vehicle sales and producing temporary license plates. Specifies that it is a felony for a person to alter, forge, counterfeit, or falsify a temporary license plate. 6/23/16 Governor s Office Support Legislative Update Matrix Page 4 of 55

240 6.12.a State Assembly Bills Subject Last Amended Status VTA Position AB 590 (Dahle) Cap-and-Trade: Biomass Power Generation Allows cap-and-trade auction proceeds deposited into the Greenhouse Gas Reduction Fund to be made available to the State Energy Resources Conservation and Development Commission, upon appropriation by the Legislature, for purposes related to maintaining the current level of biomass power generation and geothermal energy generation in California, and revitalizing currently idle facilities in strategically located regions. To be eligible for funding, requires a generation facility to satisfy all of the following: (1) the energy is generated on and after January 1, 2016; (2) the energy is generated using biomass wood wastes and residues or geothermal resources, and is sold to a load-serving entity; (3) the energy is generated at a facility with a generation capacity of more than three megawatts; and (4) the energy is generated within California and sold to customers within the state. In prioritizing projects for funding, requires the State Energy Resources Conservation and Development Commission to maximize the reduction of greenhouse gas emissions achieved by a project for each dollar awarded. Working in consultation with the California Air Resources Board (CARB), requires the State Energy Resources Conservation and Development Commission to ensure that projects receiving funding achieve net reductions in greenhouse gas emissions. 7/9/15 Senate Appropriations Committee AB 620 (R. Hernandez) LA Metro Express Lanes: Low-Income Assistance Program Requires the Los Angeles County Metropolitan Transportation Authority (LA Metro) to take additional steps to increase enrollment and participation in its existing low-income assistance program related to its I-10 and I-110 express lanes. In this regard, requires LA Metro to improve the awareness of the program through advertising, and by working with local community groups and social service agencies to distribute information about the program. Requires LA Metro to consider offering greater incentives to encourage participation in the program. 1/27/16 Senate Appropriations Committee Legislative Update Matrix Page 5 of 55

241 6.12.a State Assembly Bills Subject Last Amended Status VTA Position AB 626 (Chiu) Public Works Contracts: Claims Establishes a claim resolution process that would be applicable to all public works contracts entered into by a public entity on or after January 1, Upon receipt of a claim from a contractor sent by registered mail or certified mail with return receipt requested, requires the public entity to conduct a reasonable review of the claim and, within a period not to exceed 45 days, to provide a written statement to the contractor identifying what portion of the claim is disputed and what portion is undisputed. Allows this time period to be extended by mutual agreement between the public entity and the contractor. Requires the contractor to furnish reasonable documentation to support the claim. Specifies that if a public entity needs approval from its governing board to provide such a written statement to the contractor and its governing board does not meet within the 45-day period or within the mutually agreed to extension of time following receipt of the claim, allows the public entity to have up to three days following the next publicly noticed meeting of its governing board after the 45-day period or time extension to provide the written statement to the contractor. Provides that failure by the public entity to respond to the claim within the specified time period shall result in the claim being rejected in its entirety. Requires any payment due on the undisputed portion of the claim to be processed and made within 60 days after the public entity issues its written statement. If the contractor disputes the public entity s written statement or if the public entity fails to respond to a claim within the time prescribed, allows the contractor to demand in writing an informal conference to meet and confer for settlement of the issues in dispute. Requires any disputed portion of the claim following the conclusion of the meet-and-confer conference, as identified in writing, to be submitted to non-binding arbitration, with the public entity and the contractor sharing the associated costs equally. Unless otherwise agreed to by the public entity and the contractor in writing, provides that the mediation conducted pursuant to this bill shall excuse any further obligation to mediate after litigation has commenced. Allows a contractor to present a claim to a public entity on behalf of a subcontractor or a lower-tier subcontractor lacking legal standing to assert such a claim. Requires the contractor to notify the subcontractor in writing within 45 days as to whether the claim was presented to the public entity, or to provide the subcontractor a statement of reasons as to why the claim was not presented. Subjects amounts for claims not paid by the public entity to the contractor in a timely manner as required by this bill to bear interest at 7 percent per annum. Exempts certain state agencies from the provisions of the bill. Sunsets the provisions of the bill on January 1, /8/16 Senate Appropriations Committee AB 645 (Williams) Electricity: California Renewables Portfolio Standard Pursuant to the California Renewables Portfolio Standard, requires the California Public Utilities Commission (CPUC), by January 1, 2017, to establish the quantity of electricity products from eligible renewable energy resources to be procured by each retail seller for specified compliance periods sufficient to ensure that the procurement of electricity products from these resources achieves 50 percent of retail sales by December 31, Requires the quantities to reflect reasonable progress in each of the intervening years sufficient to ensure that the procurement of electricity products from eligible renewable energy resources achieves 25 percent of retail sales by December 31, 2016; 33 percent by December 31, 2020; 38 percent by December 31, 2023; 44 percent by December 31, 2026; and 50 percent by December 31, Requires the CPUC to require retail sellers to procure not less than 50 percent of retail sales of electricity products from eligible renewable energy resources in all subsequent years. As Introduced Senate Appropriations Committee Legislative Update Matrix Page 6 of 55

242 6.12.a State Assembly Bills Subject Last Amended Status VTA Position AB 678 (O Donnell) Energy Efficiency and Greenhouse Gas Reductions Ports Program Requires the California Air Resources Board (CARB), in conjunction with the State Energy Resources Conservation and Development Commission, to develop and implement an Energy Efficiency and Greenhouse Gas Reductions Ports Program. Provides that the purpose of this program is to fund energy efficiency upgrades and investments at public ports that help reduce the emissions of criteria pollutants, toxic air contaminants and greenhouse gases. Authorizes CARB to expend cap-and-trade auction proceeds that it receives from an appropriation from the Greenhouse Gas Reduction Fund to implement the program. In order to receive funding from the program for energy-related projects, requires a port to develop and adopt, in consultation with the respective electric utility providing service to the port, an energy plan. Requires a port s energy plan to be approved by the State Energy Resources Conservation and Development Commission. Provides that the plan shall: (1) adhere to the state s preferred energy loading order; and (2) require benchmarking for energy retrofit projects and reporting of measurable energy savings. In prioritizing projects for funding, requires CARB to consider the extent to which a project would reduce greenhouse gas emissions, and provide environmental and public health co-benefits, including improved air and water quality. 8/18/15 Senate Appropriations Committee AB 779 (Garcia) Local Government: Financial Disclosures Within six months of the close of a fiscal year, requires a city, county or special district to post a link on the home page of its Internet Web site that contains the names, positions and total compensation, including a breakdown of the types of compensation provided, of each elected official within that entity for the previous fiscal year and the 10 employees with the greatest total compensation. Defines total compensation to include payments for salaries, overtime, unused vacation time, stipends, pension contributions, retirement contributions, health premium contributions, automobile allowances, phone allowances, and technology allowances. Specifies that total compensation does not include reimbursements or payments for work-related travel expenses. 6/2/16 Senate Governance & Finance Committee AB 828 (Low) Regulated Transportation Services Until January 1, 2018, excludes any motor vehicle operated in connection with a transportation network company from the definition of commercial vehicle if the vehicle: (1) is operated only for passenger service; (2) is limited to seven passengers, not including the driver; (3) is operated exclusively by the person to whom it is registered or insured; (4) is not a paratransit vehicle; (5) is not operated for public transit services; and (6) is not operated for school bus services. Requires the California Public Utilities Commission (CPUC) to conduct an investigation to consider whether existing statutes and regulations relating to for-hire passenger transportation services meet the public interest, encourage innovation, and create a fair and competitive transportation market among companies that provide regulated transportation services. Requires the CPUC to complete this investigation, and report its conclusions and recommendations to the Legislature by January 1, /30/16 Senate Appropriations Committee Legislative Update Matrix Page 7 of 55

243 6.12.a State Assembly Bills Subject Last Amended Status VTA Position AB 869 (Cooper) Fare Evasion and Prohibited Conduct on Transit Vehicles For those public transit agencies that use an administrative adjudication process for fare evasion and passenger misconduct violations, provides that a person who fails to pay the administrative penalty when due or to have the violation dismissed may be subject to criminal penalties. Requires the public transit agency to include in the notice of fare evasion or passenger misconduct a printed statement indicating that the person may be charged with an infraction or misdemeanor if the administrative penalty is not paid when due or is not dismissed. Requires the public transit agency to dismiss the original notice of fare evasion or passenger misconduct, and to make no further attempts to collect the administrative penalty if the person is charged with an infraction or misdemeanor after failing to pay the administrative penalty or failing to successfully complete the administrative adjudication process. Requires the public transit agency to serve the person charged with an infraction or misdemeanor with a new notice of fare evasion or passenger misconduct that sets forth the criminal violation. 6/18/15 Senate Floor AB 1030 (Ridley-Thomas) Cap-and-Trade: Disadvantaged Workers For projects involving hiring that are seeking an allocation of cap-and-trade auction proceeds from the Greenhouse Gas Reduction Fund, requires priority to be given to those projects that support the targeted training and hiring of workers from disadvantaged communities for career-track jobs. 7/7/15 Senate Appropriations Committee AB 1169 (Gomez) Strategic Growth Council: Signs for Project Funding Requires recipients of state grant funding from the Strategic Growth Council or any of its member state agencies for a project located in a public place and that provides public benefits to post signs acknowledging the sources of funds for the project pursuant to guidelines adopted by the council. If the state funding equals 50 percent or more of the total cost of the project, requires the state funding sources to be listed first on the signs. 9/4/15 Senate Floor AB 1360 (Ting) Transportation Network Companies: Ridesharing Allows a transportation network company or a charter-party carrier of passengers that prearranges a ride among multiple passengers who share the ride in whole or in part to charge an individual fare, rather than a vehicle-mileage or time-of-use fare, provided that all of the following conditions are met: (1) the vehicle seats no more than seven passengers, not including the driver; (2) the driver is a participating driver, as defined; (3) the vehicle is not used to provide public transit services or to carry passengers over a fixed route; (4) the vehicle is not used to provide pupil transportation or public paratransit services; and (5) the individual fare for each passenger is less than the fare that would be charged for the same ride to a passenger traveling alone. 7/2/15 Senate Energy, Utilities & Communications Committee AB 1364 (Linder) California Transportation Commission Excludes the California Transportation Commission (CTC) from the California State Transportation Agency (CalSTA), and establishes it as a separate and independent entity in state government. As Introduced Senate Transportation & Housing Committee Legislative Update Matrix Page 8 of 55

244 6.12.a State Assembly Bills Subject Last Amended Status VTA Position AB 1549 (Wood) State Highway Rightsof-Way: Fiber-Optic Cables Requires Caltrans to maintain an inventory on a centralized database of all broadband conduits that: (1) house fiber optic communication cables; (2) are owned by the department; (3) are located in state highway rights-of-way; and (4) are installed on or after January 1, Requires Caltrans to make this information available, upon request, to companies or organizations working on broadband deployment. During the design phase of a Caltrans-led highway construction project that is parallel to the highway, spans at least two overpasses, and involves construction methods suitable for installing broadband conduit, requires the department to notify companies and organizations working on broadband deployment of the project on its Internet Web site to encourage collaborative broadband installations. As part of each project, requires Caltrans to install broadband conduit capable of supporting fiber optic communication cables if no company or organization working on broadband deployment collaborates with the department and if no broadband conduit previously exists in a project area. 6/30/16 Senate Appropriations Committee AB 1550 (Gomez) Greenhouse Gas Reduction Fund: Investment Plan Requires the three-year investment plan prepared by the Department of Finance for the expenditure of cap-and-trade auction proceeds deposited into the Greenhouse Gas Reduction Fund to do the following: (1) allocate a minimum of 25 percent of available dollars in the fund to projects located within the boundaries of, and benefitting individuals living in, disadvantaged communities; and (2) allocate a minimum of 20 percent of available dollars to projects that benefit low-income households, which must be separate from the minimum 25 percent required for disadvantaged communities. Defines low-income households to mean those with household incomes at or below 80 percent of the statewide median income, or with household incomes at or below the threshold designated as low income by the Department of Housing and Community Development s list of state income limits. 5/31/16 Senate Environmental Quality Committee Legislative Update Matrix Page 9 of 55

245 6.12.a State Assembly Bills Subject Last Amended Status VTA Position AB 1555 (Gomez) Cap-and-Trade Auction Proceeds: FY 2017 Funds For FY 2017, appropriates $800 million in cap-and-trade auction proceeds deposited into the Greenhouse Gas Reduction Fund for the following: (1) $290 million to the California Air Resources Board (CARB) for low carbon transportation and infrastructure programs; (2) $10 million to CARB for active transportation and transit pass investments; (3) $100 million to the Department of Community Services and Development, and the California Conservation Corps for weatherization and low-income solar rooftop programs; (4) $100 million to the State Energy Resources Conservation and Development Commission, and the Department of Water Resources for equipment and other replacement programs; (5) $10 million to the Department of Water Resources for energy efficient groundwater pump replacement grant programs; (6) $5 million to the Department of Food and Agriculture, and $15 million to the Department of Resources Recycling and Recovery to provide incentive programs for water diversion, biogas development and compost programs; (7) $10 million to the Department of Food and Agriculture for on-farm energy and water efficiency programs; (8) $100 million to the Department of Fish and Wildlife for wetland development, rehabilitation and enhancement; (9) $85 million to the California Coastal Conservancy for wetland and watershed restoration, and carbon sequestration; (10) $15 million to the Natural Resources Agency for riparian and revegetation programs; (11) $25 million to the Natural Resources Agency for local-climate-beneficial projects for urban greening, urban canopies, urban brownfield conversation, and other related projects; (12) $10 million to the Natural Resources Agency for agricultural and rangeland carbon sequestration programs; and (13) $25 million to the Department of Forestry and Fire Protection for urban forestry. States the intent of the Legislature to set aside and reserve $150 million in future cap-and-trade auction proceeds for legislative priorities. 3/28/16 Assembly Budget Committee AB 1569 (Steinorth) CEQA: Exemption for Certain Transportation Projects Exempts from the California Environmental Quality Act (CEQA) a project that consists of the inspection, maintenance, repair, rehabilitation, replacement, or removal of existing transportation infrastructure, including highways, roadways, bridges, tunnels, culverts, public transit systems, bikeways, paths and sidewalks serving bicycles or pedestrians, and the addition of auxiliary lanes or bikeways to existing transportation infrastructure, if the project meets all of the following conditions: (1) the project is located within an existing right-of-way; (2) any area surrounding the right-of-way that is to be altered as a result of construction activities that are necessary for the completion of the project will be restored to its condition before the project; and (3) the project does not add additional motor vehicle lanes, except auxiliary lanes. 3/28/16 Assembly Natural Resources Committee Legislative Update Matrix Page 10 of 55

246 6.12.a State Assembly Bills Subject Last Amended Status VTA Position AB 1572 (Campos) School Transportation Provides that a pupil attending a public, non-charter school that receives Title 1 federal funding shall be entitled to free transportation to and from school if either of the following conditions are met: (1) the pupil resides more than one-half mile from the school; or (2) the neighborhood through which the pupil must travel to get to school is unsafe due to such factors as stray dogs, lack of sidewalks, known gang activity, presence of environmental problems and hazards, required crossings of freeways or busy intersections, or other reasons as documented by stakeholders. Requires a school district not currently providing transportation to all pupils attending schools that receives Title 1 federal funding to implement a plan to ensure that all pupils entitled to free transportation pursuant to this bill receive it. Requires the plan to be developed in consultation with teachers, school administrators, regional and local transit authorities, local air districts, Caltrans, parents, pupils, and other stakeholders. Specifies that if free, dependable and timely transportation is currently not already available to pupils who are entitled to it pursuant to this bill, the school district must ensure that such pupils are provided free transportation. Allows a school district to partner with a municipality owned transit system to provide the transportation required pursuant to this bill to middle school and high school pupils if all of the following conditions are met: (1) all drivers of the municipality owned transit system are public employees; and (2) the municipality owned transit system can certify that the transit system can ensure consistent, adequate routes and schedules to enable pupils to get home, to school and back, and does not charge the school district more than marginal cost for each transit pass. Creates the Transportation and Access to Public School Fund. Requires all transportation provided pursuant to this bill to be reimbursed by the Transportation and Access to Public School Fund. Upon appropriation by the Legislature, requires revenues distributed to the Transportation and Access to Public School Fund to be allocated to local educational agencies pursuant to a process established by the Department of Education. 4/21/16 Assembly Appropriations Committee Legislative Update Matrix Page 11 of 55

247 6.12.a State Assembly Bills Subject Last Amended Status VTA Position AB 1591 (Frazier) Transportation Funding Proposes to generate new revenues for transportation purposes from the following sources: (1) an increase in the gasoline excise tax of 22.5 cents per gallon; (2) an increase in the diesel excise tax of 30 cents per gallon; (3) a registration surcharge of $38 per year imposed on all motor vehicles; and (4) a registration surcharge of $165 per year imposed on zero-emission vehicles. Requires the repayment over the next two years of approximately $879 million in outstanding loans owed by the General Fund to the State Highway Account, the Motor Vehicle Fuel Account, the Highway Users Tax Account (HUTA), and the Motor Vehicle Account. Beginning July 1, 2019, and every three years thereafter, indexes the gas tax and the diesel excise tax to inflation. Calls for the revenues derived from the 30-cent-per-gallon increase in the diesel excise tax to be deposited into the Trade Corridors Improvement Fund and used for goods movement projects programmed by the California Transportation Commission (CTC). Requires the revenues derived from the 22.5-cent-per gallon increase in the gas tax and the two vehicle registration surcharges to be deposited into a new Road Maintenance and Rehabilitation Account. Requires the revenues in the account to be used for the following purposes: (1) road maintenance and rehabilitation; (2) safety projects; (3) railroad grade separations; and (4) active transportation and pedestrian/bicycle safety projects in conjunction with any other allowable project. Requires 5 percent of the funds in the Road Maintenance and Rehabilitation Account to be set aside for counties that currently do not have a local transportation sales tax, but gain voter approval for one after July 1, Allocates the remaining balance in the account after the 5-percent set-aside as follows: (1) 50 percent to Caltrans for state highway maintenance, or State Highway Operation and Protection Program (SHOPP) projects; and (2) 50 percent to cities and counties for their local roadway systems. In the latter case, equally divides the funds between cities and counties, with the cities portion being allocated by a formula based on population, and the counties share by a formula based on vehicle registrations and miles of maintained county roads. Requires cities and counties to use their formula shares for any of the following: (1) improvements to transportation facilities that will assist in reducing further deterioration of the existing roadway system; (2) to satisfy a local match requirement for federal or state funds for similar purposes; or (3) an active transportation or pedestrian/bicycle safety project that is done in conjunction with any other eligible project. Allows a city or county to spend its formula share for other priorities only if it has an average Pavement Condition Index that meets or exceeds 85. In order to remain eligible for an allocation from the Road Maintenance and Rehabilitation Account, requires cities and counties to maintain their historic commitment of local funds for street/road purposes by annually spending not less than the average of its expenditures from FY 2010, FY 2011 and FY Increases the percentage of capand-trade auction proceeds distributed to the Transit and Intercity Rail Program from 10 percent to 20 percent. Requires 20 percent of cap-and-trade auction proceeds to be distributed to the Trade Corridors Improvement Fund. Converts the variable gas tax rate to a fixed rate of 18 cents per gallon and indexes it to inflation every three years, beginning July 1, Eliminates the Board of Equalization s annual adjustments to the diesel excise tax rate pursuant to the transportation funding swap. Prohibits vehicle weight fee revenues from being used to pay debt service on transportation general obligation bonds or from being loaned to the General Fund. As Introduced Assembly Transportation Committee Legislative Update Matrix Page 12 of 55

248 6.12.a State Assembly Bills Subject Last Amended Status VTA Position AB 1592 (Bonilla) Contra Costa Transportation Authority: Autonomous Vehicles Pilot Project Authorizes the Contra Costa Transportation Authority (CCTA) to conduct a pilot project for the testing of autonomous vehicles that do not have an operator, and that are not equipped with a steering wheel, a brake pedal or an accelerator, provided that the following requirements are met: (1) the testing is conducted only at a privately owned business park designated by CCTA and at the GoMentum Station located within the boundaries of the former Concord Naval Weapons Station; (2) the autonomous vehicles operate at speeds of less than 35 miles per hour; and (3) a change in ownership of the property comprising the GoMentum Station does not affect the authorization to conduct the testing. Requires CCTA or a private entity or a combination of the two to obtain an instrument of insurance, surety bond or proof of self-insurance in an amount of $5 million prior to the start of testing of any autonomous vehicle on or across a public road. Provides that the operator of the autonomous technology may only collect data about the operation of the autonomous vehicle and the environment of the vehicle that is necessary for the operation of the vehicle, and not for marketing or other commercial purposes. Specifies that the bill does not limit the authority of the Department of Motor Vehicles (DMV) to promulgate regulations governing the testing and operation of autonomous vehicles on public roads, with or without the presence of a driver inside the vehicle. 6/22/16 Senate Appropriations Committee AB 1595 (Campos) Mass Transportation Employees: Human Trafficking Training Requires a private or public employer that provides mass transportation services in California to train its relevant employees in recognizing the signs of human trafficking and how to report those signs to the appropriate law enforcement agency. Requires the Department of Justice to develop guidelines for this training that include all of the following: (1) the definition of human trafficking, including sex and labor trafficking; (2) myths and misconceptions about human trafficking; (3) red flags of human trafficking to be aware of, including physical and mental signs; and (4) guidance on how to report human trafficking, including national hotlines and that the person reporting may do so confidentially. By January 1, 2018, requires this training to be incorporated into the initial training process for all new employees who are likely to interact or come into contact with victims of human trafficking. Requires all existing employees who are likely to interact or come into contact with victims of human trafficking to receive this training by January 1, Exempts taxi services and airlines from the provisions of the bill. 3/29/16 Assembly Appropriations Committee Support Legislative Update Matrix Page 13 of 55

249 6.12.a State Assembly Bills Subject Last Amended Status VTA Position AB 1610 (Budget Committee) Transportation Budget Trailer Bill Provides that after the amounts required under current law have been repaid using either tribal gaming or Budget Stabilization Account revenues to various transportation accounts for prior loans made to the General Fund, or in any year during which any portion of the outstanding loans are repaid from the Budget Stabilization Account in an amount that is greater than or equal to the amount of tribal gaming revenues, requires tribal gaming revenues to be remitted to the California Gambling Control Commission for deposit in the General Fund. For the third and fourth quarters of FY 2016, and for all four quarters of FY 2017 and FY 2018, requires the Controller s Office to calculate and publish the allocation of State Transit Assistance Program (STA) revenue-based funds based on the same list of public transit operators and the same individual operator ratios that were published by the Controller s Office for the fourth quarter of FY Requires the remaining FY 2016 distributions of STA revenue-based funds to individual public transit operators be adjusted so that the total FY 2016 amount received by an operator ultimately reflects the FY 2015 operator ratios. Effective April 1, 2017, increases the base vehicle registration fee from $43 to $53, which shall be adjusted annually pursuant to the Consumer Price Index. 6/13/16 Assembly Floor: Concurrence AB 1640 (Stone) Retirement: Public Transit Employees Clarifies that public transit employees whose interests are protected under Section 5333(b) of Title 49 of the United States Code and who became a member of a state or local public retirement system prior to December 30, 2014, are exempt from the California Public Employees Pension Reform Act of 2013 (PEPRA). 6/20/16 Senate Appropriations Committee Sponsor AB 1641 (Allen) Private Shuttles Allows a public transit agency, by ordinance or resolution, to permit the vehicles of a private shuttle service provider to stop for the loading or unloading of its passengers alongside any or all curb spaces designated for the passengers of the public transit agency s buses. States that it is not the intent of the Legislature to replace public transit service. As Introduced Assembly Transportation Committee AB 1661 (McCarthy) Sexual Harassment Training and Education Requires local agency officials to receive sexual harassment prevention training and education if the agency provides any type of compensation, salary or stipend to those officials. Defines local agency official to mean any member of a local agency s legislative board and any elected local agency official. Allows a local agency to also require any of its employees to receive such training and education. If applicable, requires each local agency official or employee to receive at least two hours of sexual harassment prevention training and education within the first six months of taking office or commencing employment, and every two years thereafter. Provides that this training shall be in addition to any other law requiring similar or related training. Requires a local agency to maintain records indicating both of the following: (1) the dates that local agency officials or employees satisfied the requirements of this bill; and (2) the entity that provided the training. Requires an entity that develops curricula for this training and education to consult with the Office of the Attorney General, city attorney or county counsel regarding the sufficiency and accuracy of the curricula content. Allows an entity to include local sexual harassment prevention training and education policies in the curricula. 6/13/16 Senate Appropriations Committee Legislative Update Matrix Page 14 of 55

250 6.12.a State Assembly Bills Subject Last Amended Status VTA Position AB 1665 (Bonilla) Contra Costa Transportation Authority: Transactions and Use Taxes Until December 31, 2024, allows the Contra Costa Transportation Authority to impose a transactions and use tax for the support of countywide transportation programs at a rate of not more than 0.5 percent that would, in combination with all other such taxes imposed in the county, exceed the state s limit of 2 percent, subject to the following conditions: (1) the authority adopts an ordinance imposing the tax by the appropriate voting approval requirement; and (2) the ordinance is submitted to the county s electorate on a November general election ballot and is approved by the voters pursuant to Article XIII C of the California Constitution. 5/9/16 Governor s Office AB 1707 (Linder) Written Public Records Requests Requires a local agency s response to a written request for public records that includes a denial of the request, in whole or in part, to be in writing. Requires a local agency s written response demonstrating that the record in question is exempt under an express provision of state law to also identify the type of record withheld and the specific exemption that justifies the withholding of that type of record. 3/28/16 Assembly Local Government Committee AB 1710 (Calderon) Zero-Emission and Near-Zero-Emission Vehicles By January 1, 2019, requires the California Air Resources Board (CARB) to develop and implement a comprehensive program to promote zero-emission and near-zero-emission vehicle deployment in the state to drastically increase the use of those vehicles, and to meet the goals established by the Governor and the Legislature. Requires this program to consist of a portfolio of incentives, including the following: (1) an employer incentive program; (2) an incentive program targeted at low-income individuals; and (3) on-road incentives. Specifies that incentives may include grants, loans, revolving loans, or other appropriate measures. Requires the incentives to be funded with cap-and-trade auction proceeds deposited into the Greenhouse Gas Reduction Fund, subject to annual appropriations by the Legislature. For purposes of calculating the amount of sales and use tax owed, excludes the cost of a new or used zero-emission or near-zero-emission vehicle purchased by a low-income individual that does not exceed $40,000. For each taxable year beginning January 1, 2017, and before January 1, 2026, provides an income tax credit in an amount equal to $2,500 to a qualified taxpayer who purchased a zero-emission or near-zero-emission vehicle during the taxable year. 4/5/16 Assembly Appropriations Committee AB 1717 (Hadley) Cap-and-Trade: High- Speed Rail Provides that if the state s high-speed rail project becomes ineligible for cap-and-trade funding from the Greenhouse Gas Reduction Fund because of the selection of an alternative initial operating segment by the California High-Speed Rail Authority that is not as described in its 2012 business plan, requires the 25 percent in cap-and-trade auction proceeds that is required to be allocated to the authority under current law to be, instead, continuously appropriated to the Transit and Intercity Rail Capital Program. 3/18/16 Assembly Transportation Committee Legislative Update Matrix Page 15 of 55

251 6.12.a State Assembly Bills Subject Last Amended Status VTA Position AB 1746 (Stone) Transit-Bus-Only Traffic Corridors Allows the Santa Clara Valley Transportation Authority (VTA), the Alameda-Contra Costa Transit District (AC Transit), the Central Contra Costa Transit Authority (County Connection), the Livermore Amador Valley Transit Authority, the Los Angeles County Metropolitan Transportation Authority (LA Metro), North County Transit District, the San Diego Association of Governments (SANDAG), and the San Diego Metropolitan Transit System (MTS) to utilize the shoulders of state highways within their service areas as transit-bus-only traffic corridors, subject to the approval of Caltrans and the California Highway Patrol (CHP). Requires these agencies to determine jointly with Caltrans and the CHP which state highway segments within their service areas would be designated as transit-bus-only traffic corridors based on right-of-way availability and capacity, peak congestion hours, and the most heavily congested areas. Requires the agencies to actively work with Caltrans and the CHP to develop guidelines that ensure driver and vehicle safety, as well as the integrity of the highway infrastructure. Requires the agencies and Caltrans to monitor the state of repair of highway shoulders used as transit-bus-only traffic corridors. Requires the agencies to be responsible for all costs associated with this effort, including those costs related to repairs attributable to the operation of transit buses on highway shoulders. Two years after an agency commences the operation of public transit service on a highway shoulder, requires the agency, in conjunction with Caltrans and the CHP, to submit a report to the Legislature that includes all of the following: (1) information regarding the geographic scope of the service; (2) a copy of the guidelines agreed to by the agency, Caltrans and the CHP; (3) information about any highway modifications; (4) information regarding the costs associated with the service; and (5) performance measures used to evaluate the success of the service, such as safety, freeway operations, and public transit travel time reliability and savings. Requires the agency to post the report on its Internet Web site to enable the public to access it. 5/24/16 Senate Transportation & Housing Committee Sponsor AB 1768 (Gallagher) High-Speed Rail: Bond Funding Specifies that no further bonds shall be sold for high-speed rail purposes pursuant to the Safe, Reliable High-Speed Passenger Train Bond Act for the 21 st Century (Proposition 1A), except as specifically provided with respect to an existing appropriation for early improvement projects related to the Phase I blended system. Upon appropriation by the Legislature, requires the unspent proceeds received from outstanding bonds issued and sold for high-speed rail purposes prior to the effective date of the provisions of this bill to be redirected to retiring the debt incurred from the issuance and sale of those outstanding bonds. Allows the remaining unissued bonds, as of the effective date of the provisions of this bill, that were authorized for high-speed rail purposes to be issued and sold. Upon appropriation by the Legislature, requires the net proceeds from the sale of these remaining unissued bonds to be made available to fund projects in the State Highway Operation and Protection Program (SHOPP). Makes no changes to the authorization under Proposition 1A for the issuance of $950 million in bonds for rail purposes other than high-speed rail. 2/25/16 Assembly Transportation Committee AB 1780 (Medina) Cap-and-Trade: Trade Corridors Requires 20 percent of the annual amount of cap-and-trade auction proceeds deposited into the Greenhouse Gas Reduction Fund to be continuously appropriated to the California Transportation Commission (CTC) to be allocated to reduce greenhouse gas emissions in trade corridors consistent with the guidelines developed by the commission for the Proposition 1B Trade Corridors Improvement Fund. 3/28/16 Assembly Appropriations Committee Legislative Update Matrix Page 16 of 55

252 6.12.a State Assembly Bills Subject Last Amended Status VTA Position AB 1785 (Quirk) Vehicles: Wireless Electronic Devices Recasts provisions in current law to prohibit a person from driving a motor vehicle while holding and operating a handheld wireless telephone or an electronic wireless communications device for any purpose, unless the device is specifically designed and configured to be used in a voiceoperated and hands-free manner. Specifies that this prohibition shall not apply to manufacturerinstalled systems that are embedded in a motor vehicle. Provides that a violation is an infraction punishable by a base fine of $20 for a first offense and $50 for each subsequent offense. 6/30/16 Senate Appropriations Committee AB 1813 (Frazier) California High-Speed Rail Authority: Membership Provides for the appointment of one senator by the Senate Rules Committee and one Assemblymember by the Speaker to serve as ex-officio members of the California High-Speed Rail Authority. Specifies that the ex-officio members shall participate in the activities of the High- Speed Rail Authority to the extent that such participation is not incompatible with their positions as members of the Legislature. As Introduced Governor s Office AB 1814 (Allen) State Highways: Roadside Rest Areas Authorizes Caltrans to enter into one or more agreements for the operation of safety roadside rest areas by private entities in conjunction with the development of a retail establishment. 4/11/16 Assembly Transportation Committee AB 1815 (Alejo) Cap-and-Trade: Disadvantaged Communities Technical Assistance Program Upon an appropriation of cap-and-trade auction proceeds deposited into the Greenhouse Gas Reduction Fund, requires the California Environmental Protection Agency (CalEPA) to establish a comprehensive technical assistance program for eligible applicants assisting disadvantaged communities that the agency determines require technical assistance in accessing programs funded with cap-and-trade auction proceeds. Requires this program to provide assistance to eligible applicants with regard to any of the following: (1) identifying state agencies with appropriate grant programs; (2) developing competitive project proposals to apply for cap-and-trade funding available through state agencies; (3) coordinating existing local programs to reduce greenhouse gas emissions with new programs receiving cap-and-trade funding; (4) conducting community outreach to residents of disadvantaged communities that CalEPA determines require such assistance; or (5) conducting the planning process for future greenhouse gas emissions reductions programs. Requires the technical assistance provided pursuant to the bill to promote programs that reduce greenhouse gas emissions and demonstrate a direct, meaningful benefit to disadvantaged communities. Requires the three-year cap-and-trade investment plan developed by the Department of Finance and submitted to the Legislature to allocate money from the Greenhouse Gas Reduction Fund to CalEPA to implement the technical assistance program. 5/2/16 Assembly Appropriations Committee AB 1833 (Linder) Advanced Mitigation Program Requires Caltrans to establish an Advanced Mitigation Program to accelerate project delivery and improve the outcomes of environmental mitigation for transportation infrastructure projects. Allows the program to utilize mitigation instruments, including mitigation banks and conservation easements. Allows Caltrans to use advanced mitigation credits to fulfill mitigation requirements of any environmental law for a transportation project eligible for the State Transportation Improvement Program (STIP), or the State Highway Operation and Protection Program (SHOPP). 4/25/16 Assembly Appropriations Committee Legislative Update Matrix Page 17 of 55

253 6.12.a State Assembly Bills Subject Last Amended Status VTA Position AB 1841 (Irwin) Office of Emergency Services: Cybersecurity By July 1, 2017, requires the Office of Emergency Services, in conjunction with the Department of Technology, to transmit to the Legislature a cybersecurity incident response plan, known as the Cyber Security Annex to the State Emergency Plan Emergency Function 18 or EL 18, which must include all of the following: (1) methods for providing emergency services; (2) command structure for statewide coordinated emergency services; (3) emergency service roles of appropriate state agencies; (4) identification of resources to be mobilized; (5) public information plans; and (6) continuity of government services. By July 1, 2018, requires the Office of Emergency Services, in conjunction with the Department of Technology, to develop cybersecurity incident response standards for state agencies to prepare for cybersecurity interference with, or the compromise or incapacitation of, critical infrastructure and the development of critical infrastructure information, and to transmit critical infrastructure information to the office. In developing the standards, requires the Office of Emergency Services to consider all of the following: (1) costs to implement the standards; (2) security of critical infrastructure information; (3) centralized management of risk; and (4) national private industry best practices. Requires each state agency to report on its compliance with these standards to the Office of Emergency Services in a manner and at a time directed by the office, but no later than January 1, Requires the Office of Emergency Services to provide suggestions to a state agency to improve its compliance with the standards. 4/14/16 Senate Judiciary Committee AB 1851 (Gray) Clean Vehicle Rebate Project For purposes of the state s Clean Vehicle Rebate Project, requires the California Air Resources Board (CARB), until January 1, 2026, to provide specified rebate amounts for the purchase of battery electric, fuel-cell and plug-in hybrid electric vehicles. Limits these rebates to the first $60,000 of the manufacturer s suggested retail price or the final sales price, whichever is less. Until January 1, 2026, requires CARB to issue specified rebates to a property owner or lessee up to the costs associated with the purchase and installation of electric vehicle charging stations. Requires the rebates for clean-fuel vehicles and electric vehicle charging stations to be funded with cap-and-trade auction proceeds deposited into the Greenhouse Gas Reduction Fund, subject to annual appropriations by the Legislature. For purposes of calculating the amount of sales and use tax owed, requires, until January 1, 2026, that the value of a trade-in vehicle be deducted from the sales price of the purchase of battery electric, fuel-cell and plug-in hybrid electric vehicles. Requires cap-and-trade auction proceeds deposited into the Greenhouse Gas Reduction Fund, subject to annual appropriations by the Legislature, to be used to reimburse cities and counties for any resulting loss of revenues. Deletes the current 85,000 cap on the number of decals, stickers or other identifiers that can be issued by the Department of Motor Vehicles (DMV) to allow plug-in hybrid electric vehicles to use high-occupancy vehicle (HOV) lanes without the required number of occupants in the vehicle. 4/13/16 Assembly Appropriations Committee Legislative Update Matrix Page 18 of 55

254 6.12.a State Assembly Bills Subject Last Amended Status VTA Position AB 1866 (Wilk) High-Speed Rail: Bonding Funding Specifies that no further bonds shall be sold for high-speed rail purposes pursuant to the Safe, Reliable High-Speed Passenger Train Bond Act for the 21 st Century (Proposition 1A), except as specifically provided with respect to an existing appropriation for early improvement projects related to the Phase I blended system. Upon appropriation by the Legislature, requires the unspent proceeds received from outstanding bonds issued and sold for high-speed rail purposes prior to the effective date of the provisions of this bill to be redirected to retiring the debt incurred from the issuance and sale of those outstanding bonds. Allows the remaining unissued bonds, as of the effective date of the provisions of this bill, that were authorized for high-speed rail purposes to be issued and sold. Upon appropriation by the Legislature, requires the net proceeds from the sale of these remaining unissued bonds to be made available to fund the construction of water capital projects, including desalination facilities, wastewater treatment and recycling facilities, reservoirs, water conveyance infrastructure, and aquifer recharge. Makes no changes to the authorization under Proposition 1A for the issuance of $950 million in bonds for rail purposes other than highspeed rail. As Introduced Assembly Transportation Committee AB 1873 (Holden) Board of Infrastructure Planning, Development and Finance Within the Office of Planning and Research, creates the Board of Infrastructure Planning, Development and Finance. Requires the board to categorize and recommend the priority of the state s infrastructure needs and develop funding to finance those projects. 4/19/16 Assembly Appropriations Committee AB 1886 (McCarty) CEQA: Transit Priority Projects Specifies that a transit priority project shall be considered to be within one-half mile of a major transit stop or high-quality transit corridor and, thus, shall qualify for limited review under the California Environmental Quality Act (CEQA) if all parcels within the project have no more than 50 percent, rather than 25 percent, of their area farther than one-half mile from the stop or corridor. 5/11/16 Senate Environmental Quality Committee AB 1889 (Mullin) High-Speed Rail: FY 2013 Proposition 1A Appropriations For purposes of expending Proposition 1A bond proceeds appropriated to the California High- Speed Rail Authority in the FY 2013 Budget Act, specifies that a determination on the part of the authority that a particular corridor or usable segment would be suitable and ready for high-speed rail operation is conclusive. 6/21/16 Senate Appropriations Committee AB 1908 (Harper) HOV Lanes in Southern California Prohibits establishing a high-occupancy vehicle (HOV) lane on a state highway in Southern California, unless the lane is established as an HOV lane only during the hours of heavy commuter traffic, as determined by Caltrans. Requires existing HOV lanes in Southern California to be modified to conform to this provision. On or after May 1, 2018, provides that if Caltrans determines that there is an adverse impact on safety, traffic conditions or the environment by limiting the use of HOV lanes in Southern California only during the hours of heavy commuter traffic, authorizes the department to submit to the Legislature a notice of that determination and of the intent to reinstate 24-hour HOV lanes in Southern California. Provides that Caltrans may reinstate 24-hour HOV lanes following the submittal of the notice to the Legislature. 3/17/16 Assembly Transportation Committee Legislative Update Matrix Page 19 of 55

255 6.12.a State Assembly Bills Subject Last Amended Status VTA Position AB 1910 (Harper) Transportation Advisory Ballot Measure Requires the Secretary of State s Office to submit the following advisory question to the voters as part of the November 8, 2016, general election ballot: Shall the California Legislature disproportionately target low-income and middle-class families with a regressive tax increase on gasoline and annual vehicle registrations to fund road maintenance and rehabilitation, rather than ending the diversion of existing transportation tax revenues for nontransportation purposes, investing surplus state revenue in transportation accounts, repaying funds borrowed from transportation accounts, prioritizing roads over high-speed rail, and eliminating waste at the Department of Transportation? As Introduced Assembly Transportation Committee AB 1919 (Quirk) Local Transportation Authorities: Bonds Clarifies that accrued interest and premiums received on the sale of bonds by a local transportation authority may be used either for the payment of bond debt service or for transportation purposes for which the debt was incurred. 4/4/16 Senate Floor AB 1938 (Baker) Bay Area Toll Authority Clarifies that the existing 1 percent limitation on the amount of direct contributions or loans that the Bay Area Toll Authority (BATA) may make to the Metropolitan Transportation Commission (MTC) applies to any revenues derived from bridge tolls, fees or taxes, regardless of classification. As Introduced Assembly Transportation Committee Legislative Update Matrix Page 20 of 55

256 6.12.a State Assembly Bills Subject Last Amended Status VTA Position AB 1964 (Bloom) HOV Lanes: Low- Emission and Energy Efficient Vehicles On January 1, 2018, ends the authority of the Department of Motor Vehicles (DMV) to issue decals, stickers or other identifiers allowing battery electric, hydrogen fuel cell and compressed natural gas vehicles to use high-occupancy vehicle (HOV) lanes without the required number of occupants in the vehicle. Specifies that decals, stickers or other identifiers issued for these vehicles before January 1, 2018, are valid until January 1, Provides that decals, stickers or other identifiers allowing plug-in hybrid electric vehicles to use HOV lanes without the required number of occupants in the vehicle issued by the DMV prior to January 1, 2018, are valid until January 1, Provides that decals, stickers or other identifiers issued to plug-in hybrid electric vehicles after January 1, 2018, and prior to January 1, 2019, are valid until January 1, Beginning January 1, 2019, authorizes the DMV to issue an unlimited number of decals, stickers or other identifiers to allow HOV lane access for plug-in hybrid vehicles, which shall be valid for a fouryear period. Prohibits the DMV from issuing decals, stickers or other identifiers for plug-in hybrid electric vehicles if the sale of new plug-in hybrid electric vehicles reaches at least 89.2 percent of the total new car market share for two consecutive years. Prohibits the DMV from reinstating the issuance of decals, stickers or other identifiers for plug-in hybrid electric vehicles if there is a subsequent decrease in the sales of new plug-in hybrid electric vehicles resulting in less than 9.2 percent of the total new car market share in a later year. Requires Caltrans to remove an individual HOV lane, or a portion of the lane, from the access provisions of this bill upon the request of, and with the concurrence of, the regional transportation planning agency (RTPA) whose jurisdiction includes the lane, following a finding by the department as follows: (1) the lane, or portion of the lane, exceeds a level of service C; (2) the operation or projected operation within the next 12 months of vehicles with decals, stickers or other identifiers in the lane, or portion of the lane, significantly contributes to, or is projected to significantly contribute to, congestion of the lane; and (3) alleviating the congestion by reducing the use of the lane by non-eligible vehicles through increased enforcement or further increasing vehicle occupancy is either infeasible in the immediate future or is forecast to result in increased congestion in the corridor overall. 6/30/16 Senate Appropriations Committee AB 1982 (Bloom) California Transportation Commission Membership Increases the membership of the California Transportation Commission (CTC) to 15 by providing for the Senate Rules Committee and the Assembly speaker to each appoint an additional member. Requires one member appointed by the Senate Rules Committee and by the Assembly speaker to be a person who works directly with communities in California that are most significantly burdened by, and vulnerable to, high levels of pollution, including communities with diverse racial and ethnic populations, and communities with low-income populations. 4/12/16 Assembly Transportation Committee Legislative Update Matrix Page 21 of 55

257 6.12.a State Assembly Bills Subject Last Amended Status VTA Position AB 2014 (Melendez) Freeway Service Patrols: Program Assessment No later than June 20, 2018, and every five years thereafter, requires Caltrans, in coordination with the California Highway Patrol (CHP) and regional and local entities, to publish a statewide Freeway Service Patrol Program Assessment. Requires this assessment to do all of the following: (1) identify, quantify and analyze existing freeway service patrols, and identify opportunities to increase or expand service levels; (2) analyze and provide recommendations regarding the current and anticipated future financial condition of the program; (3) include, as attachments, supporting data provided to Caltrans by regional and local entities, and by the CHP; (4) examine the financial sustainability of maintaining current freeway service patrols, the route miles unserved or underserved by freeway service patrols, and historical, current and future state and local funding for freeway service patrols; (5) analyze and quantify the public benefits received or to be received from existing and potential new freeway service patrols; and (6) discuss how freeway service patrols relate to other state policies, plans and goals. Requires the state budget to include a line item for Caltrans and the CHP to identify the amount of local assistance and state funds provided in support of freeway service patrols. 4/13/16 Assembly Appropriations Committee AB 2030 (Mullin) SamTrans and BART: Contracting Issues Allows the San Mateo County Transit District (SamTrans) and the Bay Area Rapid Transit District (BART) to use an informal bidding process for materials, supplies and equipment contracts, under which a minimum of three quotations are obtained from vendors, for those contracts between $5,000 and $150,000. 6/1/16 Assembly Floor: Concurrence AB 2034 (Salas) Federal Environmental Review Process Extends indefinitely the statutory authorization for Caltrans to participate in a federal program that allows states to assume the responsibilities of the Federal Highway Administration (FHWA) under the National Environmental Policy Act (NEPA). In addition, extends indefinitely provisions in existing law that authorize Caltrans to consent to the jurisdiction of the federal court s with regard to the assumption of FHWA s responsibilities under NEPA and that waive the state s Eleventh Amendment protection against NEPA-related lawsuits brought in federal court for as long as Caltrans participates in the program. 3/17/16 Senate Transportation & Housing Committee AB 2049 (Melendez) High-Speed Rail: Bond Funding Specifies that no further bonds shall be sold for high-speed rail purposes pursuant to the Safe, Reliable High-Speed Passenger Train Bond Act for the 21 st Century (Proposition 1A), except as specifically provided with respect to an existing appropriation for early improvement projects related to the Phase I blended system. Upon appropriation by the Legislature, requires the unspent proceeds received from outstanding bonds issued and sold for high-speed rail purposes prior to the effective date of the provisions of this bill to be redirected to retiring the debt incurred from the issuance and sale of those outstanding bonds. Allows the remaining unissued bonds, as of the effective date of the provisions of this bill, that were authorized for high-speed rail purposes to be issued and sold. Upon appropriation by the Legislature, requires the net proceeds from the sale of these remaining unissued bonds to be made available as follows: (1) 40 percent for the State Transportation Improvement Program (STIP); (2) 40 percent for the State Highway Operation and Protection Program (SHOPP); and (3) 20 percent for the Trade Corridors Improvement Fund. Makes no changes to the authorization under Proposition 1A for the issuance of $950 million in bonds for rail purposes other than high-speed rail. As Introduced Assembly Transportation Committee Legislative Update Matrix Page 22 of 55

258 6.12.a State Assembly Bills Subject Last Amended Status VTA Position AB 2090 (Alejo) Low Carbon Transit Operations Program Authorizes Low Carbon Transit Operations Program (LCTOP) funding to be expended by a public transit agency to support the operation of existing bus or rail service if all of the following occur: (1) the governing board of the public transit agency declares a fiscal emergency within 90 days prior to requesting its formula share of LCTOP funds; (2) the LCTOP funds are necessary to sustain the agency s public transit service in the fiscal year in which the money is to be spent; (3) the governing board of the public transit agency would be required to reduce or eliminate public transit service if the LCTOP funds are not received; (4) the governing board makes a finding that a reduction in, or elimination of, public transit service would increase greenhouse gas emissions because customers would choose other less-efficient modes of transportation; (5) the public transit agency does not request funds over consecutive funding years unless it has declared a fiscal emergency in each year; and (6) the public transit agency does not request funds for more than three consecutive funding years. Requires the LCTOP funds to be expended to provide public transit operating assistance that meets both of the following criteria: (1) the expenditures support current bus or rail service operating costs, which may include labor, fueling, maintenance, and other costs to operate and maintain those services; and (2) the recipient public transit agency demonstrates that each expenditure directly sustains public transit service that would otherwise be reduced or eliminated in the upcoming year if those funds were not received. 5/27/16 Senate Appropriations Committee AB 2094 (Obernolte) Transportation Development Act (TDA) Funding Beginning in FY 2017, requires $1 billion in cap-and-trade auction proceeds deposited into the Greenhouse Gas Reduction Fund to be transferred to the Retail Sales Tax Fund for allocation pursuant to the Transportation Development Act (TDA) if certain conditions are met. Provides that in each fiscal year in which this transfer occurs, requires $1 billion in TDA funding to be redirected, as follows: (1) 50 percent to Caltrans for maintenance of the state highway system, or for projects funded through the State Highway Operation and Protection Program (SHOPP); and (2) 50 percent to cities and counties for local streets/roads. 3/18/16 Assembly Transportation Committee AB 2100 (Calderon) 21 st Century Infrastructure Act of 2016 Requires the California Public Utilities Commission (CPUC), the State Energy Resources Conservation and Development Commission, the Independent System Operator, and the California Air Resources Board (CARB) to review and evaluate their policies and plans for the expansion of 21 st century infrastructure. Requires these agencies to do all of the following: (1) develop an interagency permitting committee to institute reforms and modernize infrastructure permitting and reviews; (2) strengthen dispute resolution mechanisms to quickly resolve conflicts and ensure that interagency disputes do not delay projects that are consistent with existing state policy priorities; and (3) identify duplicative, burdensome or unnecessary requirements, permits or processes, and evaluate whether they can be minimized or eliminated in a manner that would not jeopardize safety or electrical grid reliability. 3/18/16 Assembly Natural Resources Committee AB 2126 (Mullin) CMGC Contracting: Caltrans Increases the number of state highway projects for which Caltrans may use the Construction Manager/General Contractor (CMGC) method of project delivery from six to 12. For at least eight of these projects, requires Caltrans to use department employees or consultants under contract to the department to perform all design and engineering services. For all 12 projects, requires Caltrans to use department employees or consultants under contract to the department to perform all construction inspection services. As Introduced Senate Appropriations Committee Legislative Update Matrix Page 23 of 55

259 6.12.a State Assembly Bills Subject Last Amended Status VTA Position AB 2170 (Frazier) Trade Corridors Improvement Fund: Federal Dollars Requires revenues apportioned to California from the National Highway Freight Program established by the federal Fixing America s Surface Transportation (FAST) Act to be allocated by the California Transportation Commission (CTC) for projects pursuant to the process that was used for the Proposition 1B Trade Corridors Improvement Fund. 6/9/16 Senate Appropriations Committee AB 2196 (Low) VTA Enabling Statutes Makes a number of technical clean-up changes to the enabling statutes of the Santa Clara Valley Transportation Authority (VTA). Consistently uses VTA as the name of the organization throughout the enabling statutes. Uses the term boundaries to refer to VTA s area of jurisdiction. Clarifies that the representatives on the VTA Board of Directors from the cities may be either mayors or city council members. Changes references to board of supervisors to board of directors to reflect the appropriate governing board of VTA. Deletes obsolete provisions that relate to one-time events that occurred to form the Santa Clara County Transit District in the 1970s, and that occurred to implement the merger of the Transit District and the Santa Clara County Congestion Management Agency (CMA) to form VTA in the mid-1990s. Deletes obsolete provisions that have been superseded by the enactment of other state laws. Clarifies that the administrative head of VTA is a general manager, not an executive director. Changes references to transit facilities to transit and other transportation facilities to reflect the fact that VTA is a multi-modal transportation organization. To match federal procurement regulations, raises the minimum dollar amount from $2,500 to $3,500, above which VTA must obtain three quotes from vendors for the purchase of materials, supplies and equipment, as well as increases the maximum amount allowed under this procurement method from $100,000 to $150,000. 6/8/16 Assembly Floor: Concurrence Sponsor Legislative Update Matrix Page 24 of 55

260 6.12.a State Assembly Bills Subject Last Amended Status VTA Position AB 2222 (Holden) Cap-and-Trade Funding: Transit Pass Program Creates the Transit Pass Program to support local programs that provide free or reduced-fare public transit passes to any of the following: (1) pupils attending public middle schools or high schools that are eligible for funding under Title 1 of the federal No Child Left Behind Act of 2001; (2) students attending a California community college who qualify for a waiver of student fees pursuant to the Education Code; or (3) a student who attends a campus of a California State University or the University of California, and who receives an award under the Cal Grant Program, the federal Pell Grant Program, or both. Requires Caltrans to administer this program. Provides that the program is to be funded with cap-and-trade auction proceeds from the Greenhouse Gas Reduction Fund that are made available for this purpose upon appropriation by the Legislature. Requires Caltrans, in coordination with the California Air Resources Board (CARB), to develop guidelines describing the criteria that public transit agencies shall use to make available free or reduced-fare transit passes to eligible participants, and the methodologies that eligible participants shall use to demonstrate that the proposed expenditures will reduce greenhouse gas emissions. Defines eligible participants to mean a public agency, including a transit operator, school district, community college district, the California State University, or the University of California. Requires Caltrans to develop performance measures and reporting requirements to evaluate the effectiveness of the program, including an annual update of the number of free or reduced-fare transit passes distributed to students and whether the program is increasing transit ridership among students. Requires funds allocated to the Transit Pass Program to be expended to provide low- or no-cost public transit passes to students through programs that support new or existing transit pass programs. Allows a public transit agency to give priority to an application from an eligible participant with an existing, successful transit pass program, provided that the eligible participant can demonstrate that the additional funds will further reduce the cost of the transit pass or expand program eligibility. Requires each public transit agency to receive $20,000 from the Transit Pass Program. After the initial $20,000 amount is allocated, requires the remaining program funds to be distributed according to the State Transit Assistance Program (STA) formula. Requires any funds not used by a public transit agency in a fiscal year to be added to the allocation for the Transit Pass Program for the following fiscal year. 5/31/16 Senate Appropriations Committee AB 2233 (Brown) Highways: Exit Information Signs Requires Caltrans to adopt rules and regulations to allow for the placement, near exits and offramps on freeways located in urban and rural areas, of informational signs identifying the closest hospital owned and operated by a county that includes the full name of the hospital, if both of the following conditions are met: (1) the county requests the placement of the sign; and (2) the county agrees to pay for the cost of the sign. Requires Caltrans to erect the sign or signs within 30 days of receipt of payment from the county. As Introduced Assembly Transportation Committee Legislative Update Matrix Page 25 of 55

261 6.12.a State Assembly Bills Subject Last Amended Status VTA Position AB 2257 (Maienschein) Local Agency Meetings: Online Posting of Agendas Requires an online posting of an agenda for a meeting occurring on or after January 1, 2019, of a legislative body of a local agency that has an Internet Web site to be posted on the agency s primary Internet Web site homepage accessible through a prominent, direct link to the current agenda. Requires the direct link to be posted in an open format that meets all of the following requirements: (1) retrievable, downloadable, indexable, and electronically searchable by commonly used Internet search applications; (2) platform independent and machine readable; and (3) available to the public free of charge and without any restriction that would impede the reuse or redistribution of the agenda. Provides that a local agency that has an Internet Web site and an integrated agenda management platform does not have to comply with this requirement if all of the following are met: (1) a direct link to the integrated agenda management platform is posted on the local agency s primary Internet Web site; (2) the integrated agenda management platform may contain the prior agendas of the legislative body of the local agency occurring on or after January 1, 2019; and (3) the current agenda of the legislative body of the local agency is the first agenda available at the top of the integrated agenda management platform. 6/22/16 Senate Appropriations Committee AB 2289 (Frazier) SHOPP Projects Clarifies that capital projects to improve the operation of state highways and bridges are eligible for funding under the State Highway Operation and Protection Program (SHOPP). As Introduced Governor s Office AB 2292 (Gordon) Disadvantaged Communities: CalEnviroScreen By July 1, 2017, requires the California Environmental Protection Agency (CalEPA) to revise its CalEnviroScreen tool used to identify disadvantaged communities for investment opportunities for cap-and-trade auction proceeds from the Greenhouse Gas Reduction Fund to include areas of the state that are disproportionately impacted by any of the following: (1) high poverty rates; (2) high rent burden and severe rent burden where households pay more than 50 percent of their household income in gross rent; or (3) high cost of living. 4/14/16 Assembly Appropriations Committee AB 2293 (C. Garcia) Cap-and-Trade: Green Assistance and California Green Business Programs Requires the California Environmental Protection Agency (CalEPA) to establish and administer the Green Assistance Program to do all of the following: (1) provide technical assistance, including assistance with the development of competitive project proposals, to small businesses and small non-profit organizations applying for an allocation of cap-and-trade auction proceeds from the Greenhouse Gas Reduction Fund; (2) assist small businesses in applying for cap-and-trade funding for energy upgrades to meet and exceed the state s greenhouse gas emissions reduction goals; (3) advise small businesses in complying with all applicable federal, state and local air quality laws; (4) identify state agencies with appropriate grant programs; and (5) coordinate existing local programs to reduce greenhouse gas emissions with new programs receiving cap-and-trade funding. Requires CalEPA to also establish the California Green Business Program to provide support and assistance to green business certification programs operated by local governments that certify small- and medium-sized businesses that voluntarily adopt environmentally preferable business practices. Annually appropriates an unspecified amount of cap-and-trade auction proceeds to the Green Assistance Program and to the California Green Business Program. In the case of the California Green Business Program, requires a minimum of 25 percent of the funding to be used for local government programs benefitting disadvantaged communities. 4/27/16 Assembly Appropriations Committee Legislative Update Matrix Page 26 of 55

262 6.12.a State Assembly Bills Subject Last Amended Status VTA Position AB 2332 (E. Garcia) Caltrans: State Transportation Goals By 2020, requires Caltrans to increase the annual number of complete streets projects undertaken by the department by 20 percent over the 2016 baseline. Establishes the following goals for Caltrans: (1) reducing the number of transit, pedestrian and bicyclist fatalities by 10 percent, based on the 2016 baseline; and (2) by 2020, reducing vehicle miles traveled by 15 percent of the statewide per capita relative to 2010 levels reported by Caltrans district. Establishes a Caltrans goal to increase travel by non-automobile modes by doing all of the following: (1) tripling the amount of bicycle travel relative to California Household Travel Survey levels; (2) doubling the amount of pedestrian travel relative to California Household Travel Survey levels; and (3) doubling the amount of transit travel relative to California Household Travel Survey levels. Requires the draft five-year Interregional Transportation Improvement Program (ITIP) to include complete streets projects. Not later than July 1, 2017, requires the California Transportation Commission (CTC) to adopt targets and performance measures for the assets management plan prepared by Caltrans that reflect state transportation goals and objectives. Requires these targets and performance measures to include all of the following: (1) improving mobility, access and safety for non-motorized users in disadvantaged communities by requiring not less than 35 percent of State Highway Operation and Protection Program (SHOPP) projects to be located in urban and rural disadvantaged communities; (2) providing targeted and meaningful benefits to residents in disadvantaged communities; (3) prioritizing projects identified by the community through strong public participation in disadvantaged communities; and (4) prioritizing projects that recruit, hire or train low-income, formerly incarcerated, underrepresented, or disconnect youth and adults, and other individuals with barriers to employment. Requires Caltrans to hold at least one public hearing in each of its districts on SHOPP projects. Requires these hearings to be accessible by public transit and held at times that are convenient for disadvantaged community residents. 4/5/16 Assembly Transportation Committee AB 2348 (Levine) Retirement Plans: Infrastructure Investments Authorizes the Department of Finance to identify infrastructure projects in the state for which the department will guarantee a rate of return for an investment made in that infrastructure project by the Public Employees Retirement System (CalPERS). Creates the Reinvesting in California Special Fund as a continuously appropriated fund. Requires money in the fund to be used to pay the rate of return on investments made in infrastructure projects. States the intent of the Legislature to identify special fund dollars to be transferred to the Reinvesting in California Special Fund. 5/27/16 Senate Appropriations Committee AB 2355 (Dababneh) Intercity Rail Services: Noise Mitigation Requires Caltrans to develop a program for the reasonable mitigation of noise and vibration levels in residential neighborhoods along railroad lines where the department contracts for state-funded intercity rail passenger service. As Introduced Assembly Transportation Committee AB 2374 (Chiu) CMGC Contracting: Local Expressways and Ramps Clarifies that regional transportation agencies, including the Santa Clara Valley Transportation Authority (VTA), may use the Construction Manager/General Contractor (CMGC) project delivery method to design and construct projects on expressways and ramps that are not on the state highway system. Deletes provisions in current state law that require an expressway project to be developed in accordance with an expenditure plan approved by the voters in order for the regional transportation agency to be able to use CMGC contracting for that project. As Introduced Senate Floor Support Legislative Update Matrix Page 27 of 55

263 6.12.a State Assembly Bills Subject Last Amended Status VTA Position AB 2382 (Lopez) High-Speed Rail Authority: Membership Beginning with an available vacancy on and after January 1, 2017, requires one of the Governor s appointments to the California High-Speed Rail Authority to be a person, other than a current or former elected official, who is from a disadvantaged community. 4/11/16 Assembly Transportation Committee AB 2398 (Chau) State Highways Every five years, requires the California Transportation Commission (CTC) to report to the Legislature both of the following: (1) the number of selections, adoptions and location determinations for state highway routes; and (2) the amount of money allocated for the construction, improvement or maintenance of the various highways under the jurisdiction of Caltrans. 3/18/16 Assembly Transportation Committee AB 2411 (Frazier) Miscellaneous Caltrans Revenues On July 1, 2017, prohibits revenues generated by Caltrans through the rental or sale of property, the sale of documents and other miscellaneous services to the public from being transferred to the General Fund and used for debt service on general obligation transportation bonds. Instead, requires these revenues to be retained in the State Highway Account and used for transportation purposes. 5/27/16 Senate Transportation & Housing Committee AB 2426 (Low) Workplace Charging Station Grant Program Until January 1, 2021, requires the California Air Resources Board (CARB) to establish and implement the Workplace Charging Station Grant Program to award grants to commercial property owners or lessees for the installation of electric vehicle charging stations in their parking facilities for employees or visitors. 3/18/16 Assembly Transportation Committee AB 2468 (Hadley) Public Employees Retirement Authorizes a public agency that has contracted with the California Public Employees Retirement System (CalPERS) to offer an alternative formula from the one required by the Public Employees Pension Reform Act of 2013 to be applicable to miscellaneous, non-safety employees hired after January 1, 2017, and who are new members, provided that the agency and the representative employee organization have agreed to its application in a valid memorandum of understanding. Specifies that the alternative formula would be 1 percent at 55 and 1.7 at 62. 4/12/16 Assembly Public Employees, Retirement & Social Security Committee AB 2542 (Gatto) Streets and Highways: Reversible Lanes When submitting a capacity-increasing project, or a major street or highway lane realignment project to the California Transportation Commission (CTC) for approval, requires Caltrans or a regional transportation agency to demonstrate that reversible lanes were considered for the project. 3/15/16 Senate Appropriations Committee AB 2564 (Cooper) Clean Vehicle Rebate Program Requires the California Air Resources Board (CARB) to adopt regulations for the Clean Vehicle Rebate Program that do all of the following: (1) limit eligibility based on a person s gross annual income; (2) increase the rebate payment by $500 for all eligible vehicle types for low-income applicants; (3) include outreach to low-income households; and (4) prioritize rebate payments for low-income applicants. Defines low income to mean a resident whose household income is less than or equal to 300 percent of the federal poverty level. 4/20/16 Senate Environmental Quality Committee Legislative Update Matrix Page 28 of 55

264 6.12.a State Assembly Bills Subject Last Amended Status VTA Position AB 2620 (Dababneh) Proposition 116 Passenger Rail Funding Requires Proposition 116 funds not expended or encumbered by July 1, 2020, to be reallocated to any other existing passenger rail project with existing rail service by the California Transportation Commission (CTC). 4/11/16 Senate Appropriations Committee AB 2653 (E. Garcia) Greenhouse Gas Reduction Fund: Report on Economic Benefits Requires each state agency receiving allocations of cap-and-trade auction proceeds from the Greenhouse Gas Reduction Fund to report the following information to the California Environmental Protection Agency (CalEPA): (1) the number of business entities receiving financial assistance or entering into contracts paid in whole or in part using cap-and-trade auction proceeds; (2) the amount of other public or private moneys leveraged when business entities receive cap-and-trade auction proceeds; (3) the location, industry sector and number of employees of the business entities receiving cap-and-trade auction proceeds; (4) the number of jobs created, including wage levels, by business entities receiving cap-and-trade auction proceeds; and (5) outcomes from actions taken to assist residents of disadvantaged communities and other target populations with business, employment and training opportunities offered through activities funded in whole or in part with cap-and-trade auction proceeds or other state funding sources overseen by the reporting agency that are directly related to climate change mitigation, climate change adaptation and greenhouse gas emissions reductions. 4/27/16 Assembly Appropriations Committee AB 2675 (Chiu) Tax Exclusions and Credits: Electric Vehicle Infrastructure For each taxable year beginning on or after January 1, 2017, and before January 1, 2020, allows an income tax credit equal to 10 percent of the amount paid or incurred for electric vehicle infrastructure during the taxable year for use at a qualified dwelling, not to exceed $2,500. Beginning January 1, 2017, and until January 1, 2020, excludes 10 percent of the price of electric vehicle infrastructure purchased for a qualified dwelling from the state portion of the sales and use tax, up to the first $400,000. Defines qualified dwelling to mean a multi-family residence or dwelling unit, a mobile home or manufactured home located at a mobile home park, duplex, townhome, apartment, and condominium. 5/2/16 Assembly Appropriations Committee AB 2682 (Chang) Autonomous Vehicles: Model State Policy Upon the development of a model state policy on autonomous vehicles, or operational guidance related to the deployment and operation of such vehicles by the National Highway Traffic Safety Administration, requires Caltrans to hold public hearings and to consider, to the extent authorized by other law, conforming department regulations to the model policy and operational guidance. 5/18/16 Senate Floor AB 2702 (Atkins) Greenhouse Gas Emissions Reductions Study Requires the California Air Resources Board (CARB) to conduct a study that outlines best practices and policies for meeting the state s goals related to reducing greenhouse gas emissions. 3/18/16 Assembly Appropriations Committee Legislative Update Matrix Page 29 of 55

265 6.12.a State Assembly Bills Subject Last Amended Status VTA Position AB 2722 (Burke) Transformative Climate Communities Program Creates the Transformative Climate Communities Program to be administered by the Strategic Growth Council. Under the program, requires the council to award competitive grants to eligible applicants for the development and implementation of neighborhood-level transformative climate community plans that include multiple, coordinated projects that would contribute to a reduction in greenhouse gas emissions, as well as demonstrate potential climate, economic, workforce, health, and environmental benefits located in disadvantaged communities. Specifies that eligible applicants under this program include any of the following: (1) a non-profit organization; (2) a community-based organization; (3) a faith-based organization; (4) a coalition or association of non-profit organizations; (5) a community development finance institution; (6) a community development corporations; or (7) a local agency. In awarding grants, requires the Strategic Growth Council to weigh economic, environmental and health benefits equally with climate benefits resulting from greenhouse gas emissions reductions. 5/31/16 Senate Environmental Quality Committee AB 2741 (Salas) California Transportation Plan Beginning in 2020, requires Caltrans to submit updates to the California Transportation Plan to the California Transportation Commission (CTC) for its approval. Requires Caltrans to submit a draft of the updated plan to the CTC for its comments by June 30, 2020, and every five years thereafter. If the CTC does not approve an updated plan, requires Caltrans to revise its proposed update in consultation with the commission. 6/8/16 Senate Appropriations Committee AB 2742 (Nazarian) Public-Private Partnerships Extends existing statutory authority for Caltrans and regional transportation agencies, including the Santa Clara Valley Transportation Authority (VTA), to utilize public-private partnerships for transportation infrastructure projects to January 1, As Introduced Assembly Appropriations Committee Support AB 2762 (Baker) Altamont Pass Regional Rail Authority Establishes the Altamont Pass Regional Rail Authority for purposes of planning and delivering a cost-effective and responsive interregional rail connection between the Bay Area Rapid Transit District (BART) regional rail system and the Altamont Commuter Express in the Tri-Valley within the city of Livermore. Provides that Phase 1 of the project shall consist of an extension of BART along Interstate 580 to a new station in the vicinity of the Isabel Avenue Interchange in the city of Livermore. By December 1, 2017, requires the authority to publish a detailed management, finance and implementation plan relating to the project. Requires the Livermore Amador Valley Transit Authority (LAVTA) to provide all necessary administrative support to the authority for an initial one-year period. At the conclusion of the initial one-year period, allows the authority to select LAVTA, the San Joaquin Regional Rail Commission or another existing public rail transit agency to provide administrative support for a three-year term. Requires BART to assume ownership of all physical improvements constructed as part of the project, as well as operational control, maintenance responsibilities and related financial obligations. Specifies that the authority shall not be responsible for any core BART system upgrades that pre-exist its establishment, including those needed to support prior system expansions such as the extension to Silicon Valley. 4/5/16 Assembly Transportation Committee Legislative Update Matrix Page 30 of 55

266 6.12.a State Assembly Bills Subject Last Amended Status VTA Position AB 2796 (Bloom) Active Transportation Program For funding cycles occurring on or after January 1, 2018, requires a minimum of 10 percent of all available Active Transportation Program funds to be programmed for planning and noninfrastructure purposes, including activities related to safe routes to school. Of this amount, requires a minimum of 50 percent to be programmed for planning activities to develop comprehensive active transportation master plans, including community engagement activities related to the development of a master plan. Provides that if a project contains both infrastructure and non-infrastructure activities, only the portion of funding used for planning and noninfrastructure activities shall contribute to meeting the minimum percentages required by the bill. Specifies that if applications submitted in any funding cycle are not sufficient to exceed the minimum percentages required by this bill, the funds may be expended for other authorized purposes. Requires the guidelines for the Active Transportation Program adopted by the California Transportation Commission (CTC) to allow for the streamlining of project delivery by authorizing an implementing agency to do both of the following: (1) seek CTC approval of a letter of no prejudice (LONP) that would allow the agency to expend its own funds for a project programmed in a future year of an adopted program of projects in advance of an allocation of funds, and to be reimbursed at a later time for eligible expenditures; and (2) notify the CTC of its intent to expend its own funds for a project programmed in the current fiscal year of an adopted program of projects in advance of an allocation of funds upon transmittal and receipt of an allocation request by the CTC, and to be reimbursed upon approval of the allocation for eligible expenditures occurring after the commission s receipt of the request. 6/30/16 Senate Appropriations Committee AB 2800 (Quirk) Climate-Safe Infrastructure Working Group Requires state agencies to take into account the expected impacts of climate change when planning, designing, building, and investing in state infrastructure. By July 1, 2017, requires the Natural Resources Agency to establish a Climate-Safe Infrastructure Working Group for the purpose of examining how to integrate scientific data concerning projected climate change impacts into state infrastructure engineering. Requires the working group to consist of registered professional engineers with relevant expertise in state infrastructure design from the Departments of Transportation, Water Resources and General Services, and other relevant state agencies, as well as scientists with expertise in climate change impacts from the University of California and the California State University systems. Specifies that the working group may wish to consider and offer recommendations on the following issues: (1) the current barriers to integrating projected climate change impacts into state infrastructure design; (2) the development of practicable guidelines for planning and designing infrastructure that is more resilient to the expected impacts of climate change; (3) the identification of gaps in the critical information that engineers responsible for infrastructure design and construction need to address climate change impacts; (4) consideration of the appropriate engineering design for multiple projected scenarios for future climate change; and (5) consideration of a platform or process to facilitate communication between climate scientists and infrastructure engineers. By July 1, 2018, requires the working group to recommend to the Legislature a process for integrating scientific knowledge of projected climate change impacts into state infrastructure design and for addressing any information gaps in a timely manner. 6/16/16 Senate Environmental Quality Committee Legislative Update Matrix Page 31 of 55

267 6.12.a State Assembly Bills Subject Last Amended Status VTA Position AB 2843 (Chau) Public Records: Employee Contact Information Provides that the home addresses, home telephone numbers, personal cellular telephone numbers, and birth dates of all employees of a public agency shall not be deemed to be public records, and shall not be open to public inspection. Allows disclosure of this information to be made in the following circumstances: (1) to an agent or a family member of the individual to whom the information pertains; (2) to an officer or employee of another public agency when necessary for the performance of official duties; (3) to an employee organization pursuant to regulations and decisions of the Public Employment Relations Board; or (4) to an agent or employee of a health benefit plan providing health services or administering claims for health services to public agencies and their enrolled dependents. 6/28/16 Senate Appropriations Committee AB 2847 (Patterson) California High-Speed Rail Authority: Reporting Requirements Requires the business plan prepared by the California High-Speed Rail Authority to identify projected financing costs for each segment or combination of segments of the high-speed rail system for which financing is proposed by the authority. In the business plan and in other reports that High-Speed Rail Authority is required to prepare, specifies that the authority shall call out any significant changes in scope for segments of the high-speed rail system identified in the previous version of the report, and provide an explanation of adjustments in cost and schedule attributable to the changes. 5/23/16 Senate Appropriations Committee AB 2853 (Gatto) Public Records Allows a public agency that posts a public record on its Internet Web site to refer a member of the public that requests to inspect that public record to the Web site where it is posted. If a member of the public requests a copy of the public record due to an inability to access or reproduce it from the Web site where it is posted, requires the public agency to promptly provide a copy to the member of the public. 6/16/16 Senate Appropriations Committee AB 2866 (Gatto) Autonomous Vehicles By July 1, 2018, requires the Department of Motor Vehicles (DMV) to adopt regulations for the testing and operation of autonomous vehicles without a driver in the vehicle, and not equipped with a brake pedal, accelerator pedal or steering wheel. 4/11/16 Assembly Appropriations Committee ACA 3 (Gallagher) Public Employees Retirement Calls for placing before the voters an amendment to the California Constitution to make several changes to retirement benefits for public employees. Requires any enhancement to a public employee s retirement formula or benefit adopted on or after the effective date of this constitutional amendment to apply only to serve performed on and after the operative date of the enhancement, and not to any service performed prior to that date. Provides that if a change to a public employee s retirement membership classification or a change in employment results in an enhancement to the retirement formula or benefit applicable to that employee, requires that enhancement to apply only to serve performed on or after the operative date of the change, and not to service performed prior to that date. Specifies that an increase to a retiree s annual cost-of-living adjustment within existing statutory limits is not considered to be an enhancement to a retirement benefit. As Introduced Assembly Public Employees, Retirement & Social Security Committee Legislative Update Matrix Page 32 of 55

268 6.12.a State Assembly Bills Subject Last Amended Status VTA Position ACA 4 (Frazier) Local Transportation Special Taxes Calls for placing before the voters an amendment to the California Constitution to allow a city, county or special district to impose, extend or increase a sales and use or a transactions and use tax for the purpose of providing funding for local transportation projects, if approved by a 55 percent majority vote. Defines local transportation project to mean the planning, design, development, financing, construction, reconstruction, rehabilitation, improvement, acquisition, lease, operation, or maintenance of local streets, roads and highways; state highways and freeways; and public transit systems. Specifies that this constitutional amendment shall become effective upon approval by the voters, and shall apply to any local measure imposing, extending or increasing a sales and use or transactions and use tax to fund local transportation projects that is submitted at the same election. 8/17/15 Assembly Appropriations Committee Support ACA 11 (Gatto) Public Utility Reform Act of 2016 Calls for placing before the voters an amendment to the California Constitution to authorize the Legislature to reallocate and reassign all or a portion of the functions of the California Public Utilities Commission (CPUC) to other state agencies, departments, boards, or others entities that it may create. Requires the Legislature s reallocation or reassignment of the CPUC s functions to be done to further consumer protection, public health, environmental protection, increased transparency, public access, and the preservation of the ability of third parties to advocate for and intervene on behalf of those who need their advocacy. Requires the Legislature to adopt appropriate structures to: (1) provide greater accountability for the public utilities of California; (2) provide the necessary guidance to focus regulatory efforts on safety, reliability and ratesetting; and (3) implement statutorily authorized programs for reducing greenhouse gas emissions 5/27/16 Senate Energy, Utilities & Communications Committee ABX1-1 (Alejo) Transportation Funding Retains the revenues generated by vehicle weight fees in the State Highway Account, and requires the General Fund to pay debt service on transportation general obligation bonds. With regard to the revenues derived from increases in the state gasoline excise tax resulting from the transportation funding swap initially enacted in 2010 and reaffirmed in 2011, requires all of the money to be allocated in the following manner: (1) 44 percent to the State Transportation Improvement Program (STIP); (2) 44 percent to cities and counties for local streets and roads; and (3) 12 percent to the State Highway Operation & Protection Program (SHOPP). With respect to any loans made to the General Fund from the State Highway Account, the Public Transportation Account, the Bicycle Transportation Account, the Motor Vehicle Fuel Account, the Highway Users Tax Account, the Pedestrian Safety Account, the Transportation Investment Fund, the Traffic Congestion Relief Fund, the Motor Vehicle Account, and the Local Airport Loan Account with a repayment date of January 1, 2019, or later to be repaid to the account from which the loan was made by December 31, Recaptures revenues generated by Caltrans through the rental or sale of property, the sale of documents and other miscellaneous services to the public for transportation purposes. As Introduced Assembly Desk Support ABX1-2 (Perea) Public-Private Partnerships Extends existing statutory authority for Caltrans and regional transportation agencies, including the Santa Clara Valley Transportation Authority (VTA), to utilize public-private partnerships for transportation infrastructure projects indefinitely. As Introduced Assembly Desk Support Legislative Update Matrix Page 33 of 55

269 6.12.a State Assembly Bills Subject Last Amended Status VTA Position ABX1-3 (Frazier) Transportation Funding: State Highways and Local Roadways Declares the intent of the Legislature to enact a bill to establish permanent, sustainable sources of transportation funding to maintain and repair highways, local roads, bridges, and other critical transportation infrastructure. 9/3/15 Conference Committee ABX1-4 (Frazier) Transportation Funding: Trade Corridors and Local Transportation Infrastructure Declares the intent of the Legislature to enact a bill to establish permanent, sustainable sources of transportation funding to improve the state s key trade corridors, and support efforts by local governments to repair and improve local transportation infrastructure. As Introduced Senate Rules Committee ABX1-6 (R. Hernandez) Cap-and-Trade: Affordable Housing and Sustainable Communities Program Requires 20 percent of the cap-and-trade auction proceeds provided to the Affordable Housing and Sustainable Communities Program to be allocated to rural areas. Requires half of these funds to be allocated to eligible affordable housing projects. Requires the Strategic Growth Council to amend its guidelines for the Affordable Housing and Sustainable Communities Program to be consistent with the provisions of this bill. As Introduced Assembly Desk ABX1-7 (Nazarian) Cap-and-Trade: Public Transit Funding Increases the amount of cap-and-trade auction proceeds continuously appropriated from the Greenhouse Gas Reduction Fund to the Low Carbon Transit Operations Program from 5 percent to 10 percent, and to the Transit and Intercity Rail Capital Program from 10 percent to 20 percent. As Introduced Assembly Desk Support ABX1-8 (Chiu) Diesel Sales Tax Increases the sales and use tax rate on diesel fuel by 3.5 percent. Dedicates the revenues derived from this increase to the State Transit Assistance Program (STA). As Introduced Assembly Desk Support ABX1-9 (Levine) Richmond-San Rafael Bridge By September 30, 2015, requires Caltrans to implement an operational improvement project that does the following: (1) temporarily restores to automobile traffic the third eastbound lane on I-580 that existed prior to 1977 and that was temporarily restored immediately following the Loma Prieta earthquake, from the beginning of the Richmond-San Rafael Bridge in Marin County to Marine Street in Contra Costa County; and (2) temporarily converts the existing one-way bicycle lane along the north side of westbound I-580 from the Marine Street Interchange to Stenmark Drive and the toll plaza in Contra Costa County into a bidirectional bicycle and pedestrian lane. Requires Caltrans to keep the temporary third automobile lane and the temporarily bidirectional bicycle lane in place until the department has completed the Richmond-San Rafael Bridge Access Improvement Project. As Introduced Assembly Desk Legislative Update Matrix Page 34 of 55

270 6.12.a State Assembly Bills Subject Last Amended Status VTA Position ABX1-10 (Levine) Public Works Contracts: Mega- Infrastructure Projects Prohibits a state entity in a mega-infrastructure project contract from providing for the payment of extra compensation to the contractor until the project has been completed, and an independent third party has verified that the project meets all architectural or engineering plans and safety specifications of the contract. Applies to contracts entered into or amended on or after the effective date of the bill. Defines mega-infrastructure project to mean the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind that exceeds $1 billion in cost. As Introduced Assembly Desk ABX1-12 (Nazarian) LA Metro: Public- Private Partnerships Authorizes the Los Angeles County Metropolitan Transportation Authority (LA Metro) to enter into agreements with private entities for transportation projects in Los Angeles County, including on the state highway system, subject to various terms and requirements. Allow LA Metro to impose tolls and user fees for use of those projects. Requires LA Metro to implement such projects on the state highway system in cooperation with Caltrans pursuant to an agreement that addresses all matters related to design, construction, maintenance, and operation of state highway facilities in connection with the project. Authorizes LA Metro to issue bonds to finance any costs necessary to implement such a project, payable from revenues generated from the project or other available resources. As Introduced Assembly Desk ABX1-13 (Grove) Cap-and-Trade: State Highways and Local Streets/Roads For FY 2016, reduces the amount of cap-and-trade auction proceeds deposited into the Greenhouse Gas Reduction Fund that are continuously appropriated to the Affordable Housing and Sustainable Communities Program from 20 percent to 10 percent. Beginning in FY 2017, continuously appropriates 50 percent of the cap-and-trade auction proceeds deposited into the Greenhouse Gas Reduction Fund to the State Highway Operation and Protection Program (SHOPP), and 50 percent to cities and counties for local streets/roads. As Introduced Assembly Desk ABX1-14 (Waldron) General Fund Appropriations: State Highways and Local Streets/Roads Continuously appropriates $1 billion from the General Fund to be distributed as follows: (1) 50 percent to the State Highway Operation and Protection Program (SHOPP); and (2) 50 percent to cities and counties for local streets/roads. As Introduced Assembly Desk ABX1-15 (Patterson) Caltrans: Capital Outlay Support Reduces the FY 2016 appropriation to Caltrans for capital outlay support by $500 million and, instead, distributes this money as follows: (1) 50 percent to the State Highway Operation and Protection Program (SHOPP); and (2) 50 percent to cities and counties for local streets/roads. As Introduced Assembly Desk Legislative Update Matrix Page 35 of 55

271 6.12.a State Assembly Bills Subject Last Amended Status VTA Position ABX1-16 (Patterson) Pilot Program: Transferring State Highways to Local Agencies Establishes a five-year pilot program under which two counties, one in Northern California and one in Southern California, would be selected to operate, maintain and make improvements to all state highways within their respective jurisdictions. For the duration of the pilot program, requires Caltrans to convey all of its authority and responsibility over state highways in a participating county to the applicable county or regional transportation agency. Requires the pilot program to begin no later than January 1, Requires the California Transportation Commission (CTC) to administer and oversee the pilot program, and to select the counties that will participate in the program from applications received by the commission. For the duration of the pilot program, requires funding to be appropriated as block grants in the annual Budget Act to the participating counties in an amount equivalent to federal and state dollars otherwise to be expended by Caltrans on state highways in those counties, including money for operations, maintenance, capital outlay support, the State Highway Operation and Protection Program (SHOPP), and the State Transportation Improvement Program (STIP). In consultation with Caltrans, requires the CTC to determine the applicable grant amounts for each participating county, and to submit its recommendations to the Governor and the Legislature. Provides that any cost savings realized by a participating county, compared to comparable expenditures that otherwise would have been undertaken by Caltrans on state highways in the county in the absence of the pilot program, may be used by the county for other transportation priorities consistent with eligible expenditures for the funding sources involved, subject to approval by the CTC. As Introduced Assembly Desk ABX1-17 (Achadjian) Cap-and-Trade: State Highway Operation and Protection Program Beginning in FY 2017, continuously appropriates 25 percent of the cap-and-trade auction proceeds deposited into the Greenhouse Gas Reduction Fund to the State Highway Operation and Protection Program (SHOPP). As Introduced Assembly Desk ABX1-18 (Linder) Vehicle Weight Fee Revenues Beginning January 1, 2016, prohibits vehicle weight fee revenues from being used to pay debt service on transportation-related, general obligation bonds. As Introduced Assembly Desk Support ABX1-19 (Linder) California Transportation Commission Excludes the California Transportation Commission (CTC) from the California State Transportation Agency (CalSTA), and establishes it as a separate and independent entity in state government. As Introduced Assembly Desk ABX1-20 (Gaines) State Government: Elimination of Vacant Positions Requires the Department of Human Resources to eliminate 25 percent of the vacation positions in state government that are funded by the General Fund. Continuously appropriates $685 million from the General Fund, with 50 percent to be made available to Caltrans for maintenance of the state highway system or for projects funded under the State Highway Operation and Protection Program (SHOPP), and 50 percent to be made available to cities and counties for local streets/roads. As Introduced Assembly Desk Legislative Update Matrix Page 36 of 55

272 6.12.a State Assembly Bills Subject Last Amended Status VTA Position ABX1-21 (Obernolte) Environmental Quality: Highway Projects Prohibits a court in a judicial action or proceeding under the California Environmental Quality Act (CEQA) from staying or enjoining a project related to constructing or improving a highway unless the court finds either of the following: (1) the project presents an imminent threat to the public health and safety; or (2) the project site contains unforeseen important Native American artifacts, or unforeseen important historical, archaeological or ecological values that would be materially, permanently and adversely affected by the project unless the court stays or enjoins the project. As Introduced Assembly Desk ABX1-22 (Patterson) Design-Build Contracting: Highway Projects Authorizes Caltrans to utilize design-build contracting for an unlimited number of state highway projects, and requires the department to contract with consultants to perform construction inspection services related to those projects. For design-build contracts for state highway projects administered by regional transportation agencies, including the Santa Clara Valley Transportation Agency (VTA), eliminates the requirement in existing law that Caltrans perform construction inspection services related to those projects. As Introduced Assembly Desk ABX1-23 (E. Garcia) Transportation Projects: Disadvantaged Communities By January 1, 2017, requires the California Transportation Commission (CTC) to establish a process whereby Caltrans and local agencies receiving funding for highway capital improvement projects from the State Highway Operation and Protection Program (SHOPP), or from the State Transportation Improvement Program (STIP) prioritize projects that provide meaningful benefits to the mobility and safety needs of disadvantaged community residents, as identified by the community through strong public participation. In this regard, requires the CTC to do all of the following: (1) establish a funding floor where no less than 35 percent of rehabilitation and reconstruction projects are located in urban and rural disadvantaged communities, and provide meaningful benefits to the residents of those communities; (2) include robust public stakeholder engagement with regard to the development of guidelines relating to the prioritization of projects in disadvantaged communities; and (3) prioritize projects that recruit, hire and train low-income, formerly incarcerated, or disconnected youth and adults, as well as other individuals with barriers to employment. Specifies that a disadvantaged community means a community with any of the following characteristics: (1) an area with a median household income that is less than 80 percent of the statewide median household income based on the most current census-tract-level data from the American Community Survey; (2) an area identified as among the most disadvantaged 25 percent of areas in the state according to the California Environmental Protection Agency (CalEPA), based on the latest version of CalEnviroScreen scores; or (3) an area where at least 75 percent of public school students are eligible to receive free or reduced-price meals under the National School Lunch Program. Requires $125 million to be appropriated annually from the State Highway Account to the Active Transportation Program, with these additional funds to be used for network grants that prioritize projects in underserved areas. As Introduced Assembly Desk Legislative Update Matrix Page 37 of 55

273 6.12.a State Assembly Bills Subject Last Amended Status VTA Position ABX1-24 (Levine) Bay Area Transportation Commission Effective January 1, 2017, redesignates the Metropolitan Transportation Commission (MTC) as the Bay Area Transportation Commission. Requires commissioners to be elected by districts comprised of approximately 750,000 residents, based on the 2010 Census. Declares the intent of the Legislature that the district boundaries should be drawn by a citizen s redistricting commission. Requires each district to elect one commissioner, except that a district with a toll bridge within its boundaries would elect two commissioners. Requires the initial elections for commissioners to occur in Requires the elected commissioners to take office on January 1, Declares the intent of the Legislature that campaigns for commissioners should be publicly financed. Specifies that each commissioner s term of office is four years. Effective January 1, 2017, deletes the Bay Area Toll Authority s status as a separate entity from MTC and merges the authority into the Bay Area Transportation Commission. As Introduced Assembly Desk Legislative Update Matrix Page 38 of 55

274 6.12.a 3BState Senate Bills State Senate Bills Subject Last Amended SB 20 (Pavley) Low Carbon Fuels Council SB 32 (Pavley) Greenhouse Gas Emissions Limit SB 39 (Pavley) HOV Lanes: Low- Emission and Fuel- Efficient Vehicles SB 122 (Jackson) CEQA: Record of Proceedings Creates the Low Carbon Fuels Council to consist of five members as follows: (1) the chair of the California Air Resources Board (CARB); (2) the chair of the State Energy Resources Conservation and Development Commission; (3) one member appointed by the Senate Rules Committee; (4) one member appointed by the Assembly speaker; and (5) one member appointed by the Governor. Requires the council to do all of the following: (1) coordinate state agencies activities related to the acceleration and development of the in-state production of low carbon fuels; (2) identify and address any gaps in existing programs, policies or activities that may impede the in-state construction of new or the expansion of existing low carbon fuel production facilities; and (3) make recommendations to the Legislature for changes in the law needed to achieve the state s greenhouse gas emissions reduction goals. Based on the best available scientific, technological and economic assessments, requires the California Air Resources Board (CARB) to approve in a public hearing a statewide greenhouse gas emissions limit that is equivalent to 40 percent below the 1990 level to be achieved by Requires a statewide greenhouse gas emissions limit to include short-lived climate pollution. Requires CARB to consider historic efforts to reduce greenhouse gas emissions, and objectively seek and account for cost-effective actions to reduce such emissions across all sectors. Makes conforming changes to other provisions of the California Global Warming Solutions Act of 2006 (AB 32) to reflect the addition of a 2030 statewide greenhouse gas emissions limit, except for the provisions related to CARB s authority to implement a market-based compliance mechanism. Requires CARB to make recommendations to the Governor and the Legislature on how to continue reductions of greenhouse gas emissions beyond Increases the number of green stickers that can be issued by the Department of Motor Vehicles (DMV) to allow certain low-emission and fuel-efficient vehicles to use high-occupancy vehicle (HOV) lanes regardless of the number of occupants from 70,000 to 85,000. At the request of a project applicant, requires the lead agency for California Environmental Quality Act (CEQA) purposes to prepare a record of proceedings concurrently with the preparation of a negative declaration, mitigated negative declaration, environmental impact report (EIR), or other environmental documents for the project, as specified. Requires the Office of Planning and Research to establish and maintain a database for the collection, storage, retrieval, and dissemination of environmental documents, notices of exemption, notices of preparation, notices of determination, and notices of completion provided to the office. Requires a lead agency to submit a sufficient number of copies, in either a hard copy or electronic form as required by the Office of Planning and Research, of its draft environmental document, proposed negative declaration or proposed mitigated negative declaration to the State Clearinghouse for review and comment by state agencies. Requires a lead agency to accept comments on these documents through electronic mail and to treat such comments as equivalent to written comments. Status 6/20/16 Assembly Natural Resources Committee 6/30/16 Assembly Appropriations Committee 4/8/15 Assembly Transportation Committee 6/1/15 Assembly Appropriations Committee VTA Position Legislative Update Matrix Page 39 of 55

275 6.12.a State Senate Bills Subject Last Amended SB 189 (Hueso) Clean Energy and Low-Carbon Economic and Jobs Growth Blue Ribbon Committee SB 207 (Wieckowski) Greenhouse Gas Reduction Fund: State Agency Reporting SB 321 (Beall) Variable Gas Tax Rate Creates the Clean Energy and Low-Carbon Economic and Jobs Growth Blue Ribbon Committee within the California Environmental Protection Agency (CalEPA) to be comprised of seven members appointed by the Governor, the Speaker of the Assembly and the Senate Rules Committee. Requires the committee to consist solely of persons with expertise in economic, financial or policy aspects of clean energy, economic growth, job creation, workforce standards, or employment opportunities for disadvantaged workers. Requires the committee to advise state agencies on the most effective ways to: (1) expend funds related to clean energy and the reduction of greenhouse gas emissions; and (2) implement policies in order to maximize California s economic and employment benefits. In addition, requires the committee to do all of the following: (1) develop guidance for tracking, reporting and evaluating jobs outcomes for state clean energy and low-carbon investments; (2) develop guidance to measure the quantity and quality of jobs created by state clean energy and low-carbon investments, as well as the geographic and demographic distribution of those jobs; (3) advise state agencies on the most effective ways to require responsible contractor standards, as applicable, and minimum training and skill certifications for workers to ensure high-quality work for state clean energy and low-carbon investments; (4) advise state agencies on the most effective ways to connect disadvantaged communities to good quality jobs and career pathways created by state clean energy and low-carbon investments; and (5) advise state agencies on the most effective ways to align state clean energy and low-carbon training funds with existing state workforce development investments and strategies. Requires any state agency expending cap-and-trade auction proceeds from the Greenhouse Gas Reduction Fund to post on its Internet Website a record describing each expenditure and how that expenditure would reduce greenhouse gas emissions. In calculating adjustments to the variable gas tax rate to be made for FY 2017 and each fiscal year thereafter in order to ensure that the same amount of revenue is generated as by the former state sales tax on gasoline pursuant to the transportation funding swap, requires the Board of Equalization to use a combined average based on an estimate of fuel prices for the current fiscal year and the actuals for the four previous fiscal years, rather than using projections of fuel prices for only the upcoming fiscal year. Status 8/17/15 Assembly Appropriations Committee 3/24/15 Assembly Natural Resources Committee 8/18/15 Senate Floor: Concurrence VTA Position Support Legislative Update Matrix Page 40 of 55

276 State Senate Bills Subject Last Amended SB 344 (Monning) Commercial Driver s License: Education SB 398 (Leyva) Green Assistance Program SB 400 (Lara) Cap-and-Trade: High-Speed Rail SB 433 (Berryhill) Variable Gas Tax Rate: Department of Finance Beginning January 1, 2018, requires a person, in addition to a written and driving test, to successfully complete a course of instruction from either a commercial driver training institution or a program offered by an employer that has been certified by the Department of Motor Vehicles (DMV) before he or she is issued an original commercial driver s license. Provides an exemption to this course of instruction requirement in the following cases: (1) a commercial motor vehicle driver with military motor vehicle experience who is currently licensed with the U.S. Armed Forces; (2) a commercial motor vehicle driver who presents a valid certificate of driving skill from an approved employer-testing program that includes a course of instruction that meets the minimum standards set by the DMV; (3) a commercial motor vehicle driver who presents a certificate issued by the California Highway Patrol (CHP) or a Transit Driver Training Record DL 260 form signed by an employer trainer certified by the Federal Transit Administration s Train-the-Trainer Program; or (4) a commercial motor vehicle driver who has received and documented training in compliance with the Education Code. Establishes the Green Assistance Program to be administered by the California Environmental Protection Agency (CalEPA). Requires the Green Assistance Program to provide technical assistance to small businesses, small non-profit organizations and disadvantaged communities in applying for an allocation of cap-and-trade auction proceeds from the Greenhouse Gas Reduction Fund. Specifies that the Green Assistance Program may include the following: (1) basic information on available programs funded with cap-and-trade auction proceeds, and the eligibility requirements and deadlines for those programs; and (2) referrals to designated contact people in public agencies administering programs funded with cap-and-trade auction proceeds. Requires CalEPA to use existing resources appropriated by the Legislature in the annual Budget Act to administer the Green Assistance Program. Requires not less than 25 percent of the cap-and-trade auction proceeds continuously appropriated to the California High-Speed Rail Authority from the Greenhouse Gas Reduction Fund to be allocated for projects that either reduce or offset greenhouse gas emissions directly associated with the construction of the high-speed rail project and provide a co-benefit of improving air quality. Requires priority to be given to measures and projects in communities that are located in areas designated as extreme nonattainment. Provides that measures and project eligible for funding may include the following: (1) public transit improvements that reduce congestion; (2) transportation improvements that reduce congestion, including network improvements and roadway modifications; (3) alternative transportation options, including infrastructure improvements that support clean transportation, facilitate bicycle and pedestrian use, and connect bicycle and pedestrian routes to public transit facilities; (4) natural systems, including rural and urban forests, that reduce greenhouse gas emissions or increase the sequestration of carbon to mitigate the impacts of greenhouse gas emissions, and create greater climate resiliency; and (5) the use of low- and zero-emission equipment for transportation and construction. For FY 2017 through FY 2021, requires the Department of Finance, rather than the Board of Equalization, to calculate any adjustments to the variable gas tax rate that would be needed to ensure that the same amount of revenue is generated as by the former state sales tax on gasoline pursuant to the 2010 transportation funding swap. Similarly, for FY 2017 through FY 2021, requires the Department of Finance, rather than the Board of Equalization, to adjust the diesel excise tax rate to maintain revenue neutrality with the increase in the state sales tax rate on diesel fuel that was enacted as part of the 2010 transportation funding swap Legislative Update Matrix Page 41 of 55 Status 6/23/15 Assembly Appropriations Committee 6/2/15 Assembly Appropriations Committee 6/1/15 Assembly Appropriations Committee 5/7/15 Assembly Revenue & Taxation Committee 6.12.a VTA Position

277 6.12.a State Senate Bills Subject Last Amended SB 773 (Allen) Vehicle Registration Fraud Study Until January 1, 2021, requests the University of California to conduct a study on motor vehicle registration fraud and failure to register a motor vehicle. If conducted, requires the study to include all of the following: (1) quantification of the magnitude of the problem; (2) the strategies being used by motorists to commit motor vehicle registration fraud; (3) the reasons for the behaviors of motorists who commit motor vehicle registration fraud or who fail to register their motor vehicles; (4) the costs to the state and local governments in lost revenues; (5) increases in air pollution; (6) other costs and consequences of these behaviors; and (7) recommended strategies for increasing compliance with registration requirements. Requires the Department of Motor Vehicles (DMV) to enter into an agreement with the University of California to share its vehicle registration information with university researchers if the study is conducted. Requests the University of California to post a report regarding the study on its Internet Web site by January 1, Status 6/15/16 Assembly Appropriations Committee VTA Position Legislative Update Matrix Page 42 of 55

278 6.12.a State Senate Bills Subject Last Amended SB 824 (Beall) Low Carbon Transit Operations Program Makes a number of changes to the Low Carbon Transit Operations Program (LCTOP) to enhance flexibility in the use of the funds by public transit agencies. Clarifies that a recipient transit agency may use its LCTOP formula share to purchase zero-emission buses, including electric buses, or to install the necessary equipment and infrastructure to operate and support such buses, without also having to expand service. Clarifies that a recipient transit agency may continue to use its LCTOP funding share to support new or expanded service beyond the first year in which the service is implemented, so long as the agency can demonstrate that greenhouse gas emissions reductions will be realized. For capital projects, requires a recipient transit agency to do all of the following: (1) specify the phases of work for which the agency is seeking an allocation of funding from LCTOP; (2) identify the sources and timing of all funding required to undertake and complete any phase of a project for which the agency is seeking an allocation from the program; and (3) described intended sources and timing of funding to complete any subsequent phases of the project through construction or procurement. Requires a recipient transit agency to demonstrate that each expenditure of LCTOP funding does not supplant another source of funds. Allows a recipient transit agency that does not submit an expenditure for funding in a particular fiscal year to retain its funding share, and to accumulate and utilize that funding share in a subsequent fiscal year for a larger expenditure. Requires the recipient transit agency to specify the number of years that it intends to retain its funding share and the expenditure for which the agency intends to use these dollars. Limits the number of fiscal years that a recipient transit agency may retain its funding share to four fiscal years. Allows a recipient transit agency, in any particular fiscal year, to loan or transfer its funding share to another recipient transit agency within the same region for any identified eligible expenditure. Allows a recipient transit agency to apply to Caltrans to do either of the following: (1) reassign any savings of LCTOP funding allocated for a completed expenditure to another eligible expenditure; or (2) reassign to another eligible expenditure any LCTOP funding previously allocated to an expenditure that the agency has determine is no longer a high priority. Allows for the use of Letters of No Prejudice (LONPs), so that recipient transit agencies can advance their projects or services with local money and then get reimbursed with LCTOP dollars when that funding becomes available. Requires 50 percent of total LCTOP funding to be used for expenditures that benefit disadvantaged communities as opposed to 50 percent of each recipient transit agency s allocation as is the case under current law. Beginning July 10, 2019, requires Caltrans to submit a report to the Legislature every three years regarding LCTOP expenditures benefitting disadvantaged communities in order to ensure that such expenditures are occurring within the jurisdiction of each regional transportation agency in the state. Status 6/21/16 Assembly Appropriations Committee VTA Position Support Legislative Update Matrix Page 43 of 55

279 6.12.a State Senate Bills Subject Last Amended SB 838 (Budget & Fiscal Review Committee Transportation Budget Trailer Bill SB 876 (Liu) Homelessness: Use of Public Spaces SB 882 (Hertzberg) Fare Evasion: Minors Provides that after the amounts required under current law have been repaid using either tribal gaming or Budget Stabilization Account revenues to various transportation accounts for prior loans made to the General Fund, or in any year during which any portion of the outstanding loans are repaid from the Budget Stabilization Account in an amount that is greater than or equal to the amount of tribal gaming revenues, requires tribal gaming revenues to be remitted to the California Gambling Control Commission for deposit in the General Fund. For the third and fourth quarters of FY 2016, and for all four quarters of FY 2017 and FY 2018, requires the Controller s Office to calculate and publish the allocation of State Transit Assistance Program (STA) revenue-based funds based on the same list of public transit operators and the same individual operator ratios that were published by the Controller s Office for the fourth quarter of FY Requires the remaining FY 2016 distributions of STA revenue-based funds to individual public transit operators be adjusted so that the total FY 2016 amount received by an operator ultimately reflects the FY 2015 operator ratios. Effective April 1, 2017, increases the base vehicle registration fee from $43 to $53, which shall be adjusted annually pursuant to the Consumer Price Index. On January 1, 2019, ends the authority of the Department of Motor Vehicles (DMV) to issue decals, stickers or other identifiers allowing battery electric, hydrogen fuel cell and compressed natural gas vehicles to use high-occupancy vehicle (HOV) lanes without the required number of occupants in the vehicle. Eliminates the 85,000 cap in current law and, instead, authorizes the DMV, until January 1, 2019, to issue an unlimited number of decals, stickers or other identifiers to allow HOV lane access for plug-in hybrid vehicles without the required number of occupants in the vehicle. Provides that persons experiencing homelessness shall be permitted to use public space at any time that the space is open to the public without discrimination based on their housing status, and without being subject to criminal, civil or administrative penalties. Allows persons experiencing homelessness to use public space for all of the following: (1) free movement without restraint; (2) sleeping or resting, and protecting oneself from the elements while sleeping or resting, in a non-obstructive manner; (3) eating, sleeping, accepting, or giving food in a space in which food is not otherwise generally prohibited; and (4) praying, meditating, worshipping, or practicing religion. Defines public space to mean any property that is owned by a government entity or upon which there is an easement for public use, and that is held open to the public, including plazas, courtyards, parking lots, sidewalks, public transportation facilities and services, public buildings, shopping centers, and parks. Provides that the ability to rest does not apply to a space during a time when it is closed to all persons or when a fee is required for entry or use. Prohibits a public transit agency from charging a minor with an infraction or misdemeanor for acts of fare evasion. Specifies that nothing in the bill shall limit the ability of a public transit agency to assess a minor an administrative penalty for acts of fare evasion, not to exceed $250 upon a first or second violation and not to exceed $400 upon a third or subsequent violation. Status 6/10/16 Senate Floor: Concurrence 3/28/16 Senate Transportation & Housing Committee 5/31/16 Assembly Floor VTA Position Legislative Update Matrix Page 44 of 55

280 6.12.a State Senate Bills Subject Last Amended SB 885 (Wolk) Design Professional Contracts: Indemnity SB 901 (Bates) Advanced Mitigation Program SB 902 (Cannella) Federal Environmental Review Process SB 903 (Nguyen) Transportation Loans Commencing with all contracts, and amendments thereto, entered into on or after January 1, 2017, provides that a design professional shall only have the duty to defend himself or herself from claims that arise out of, pertain to or relate to the negligence, recklessness or willful misconduct of the design professional. Specifies that all provisions, clauses, covenants, and agreements contained in, collateral to, or affecting any such contract that purport to require a design professional to defend claims against another party shall be unenforceable. Specifies that the bill does not prohibit a design professional from mutually agreeing with another party to the timing or immediacy of a defense, and provisions for reimbursement of defense fees and costs. Specifies that the bill shall not be construed to affect: (1) any duty of a design professional to defend any claims brought against him or her on an ongoing basis during their pendency; or (2) a design professional s obligation to reimburse reasonable defense costs incurred by other persons or entities, limited to the design professional s degree of fault as determined by a court, arbitration or negotiated settlement. Requires Caltrans to establish an Advanced Mitigation Program to accelerate project delivery and improve the outcomes of environmental mitigation for transportation infrastructure projects. Allows the program to utilize mitigation instruments, including mitigation banks and conservation easements. Allows Caltrans to use advanced mitigation credits to fulfill mitigation requirements of any environmental law for a transportation project eligible for the State Transportation Improvement Program (STIP), or the State Highway Operation and Protection Program (SHOPP). Beginning with FY 2017, requires Caltrans to set aside at least $30 million per year from the annual appropriations for the STIP and the SHOPP for the planning and implementation of projects in the Advanced Mitigation Program. Extends indefinitely the statutory authorization for Caltrans to participate in a federal program that allows states to assume the responsibilities of the Federal Highway Administration (FHWA) under the National Environmental Policy Act (NEPA). In addition, extends indefinitely provisions in existing law that authorize Caltrans to consent to the jurisdiction of the federal court s with regard to the assumption of FHWA s responsibilities under NEPA and that waive the state s Eleventh Amendment protection against NEPA-related lawsuits brought in federal court for as long as Caltrans participates in the program. Acknowledges that as of June 30, 2015, there is $879 million in loans of certain transportation revenues still outstanding, and requires this amount to be repaid by the General Fund from the Budget Stabilization Account no later than June 30, Requires the loan repayments to be distributed as follows: (1) $148 million to be allocated by the California Transportation Commission (CTC) to fund construction and associated support costs for projects that are programmed in the Traffic Congestion Relief Program (TCRP), but which have not received their full allocations pursuant to current law; (2) $334 million to the Trade Corridors Improvement Fund; (3) $265 million to the Transit and Intercity Rail Capital Program; and (4) $132 million to the State Highway Operation and Protection Program (SHOPP). Status 6/16/16 Assembly Judiciary Committee As Introduced As Introduced As Introduced Senate Transportation & Housing Committee Senate Transportation & Housing Committee Senate Transportation & Housing Committee VTA Position Legislative Update Matrix Page 45 of 55

281 6.12.a State Senate Bills Subject Last Amended SB 940 (Vidak) High-Speed Rail: Selling of Property SB 951 (McGuire) Golden State Patriot Passes Program SB 998 (Wieckowski) Bus-Only Lanes: Motorist Violations SB 1001 (Mitchell) Employment: Unfair Immigration-Related Practices SB 1051 (Hancock) AC Transit: Automated Enforcement of Parking Violations in Bus-Only Lanes Prior to selling property, requires the California High-Speed Rail Authority to send notification by certified mail to the last known owner advising him or her that the property will be offered for sale. Provides that the High-Speed Rail Authority shall not sell the property until at least 30 days after the notification has been sent. Creates the Golden State Patriot Passes Program as a pilot program to provide veterans with free access to public transit services. Requires Caltrans to administer the program. By January 1, 2018, requires Caltrans to select three transit operator applicants to receive funding under the pilot program. If there are sufficient applicants, requires Caltrans to do all of the following: (1) not select a transit operator applicant that is currently providing veterans with free access to public transit services; (2) select applicants that serve entirely different counties; (3) select one application that primarily serves an urban area, one that primarily serves a suburban area, and one that primarily serves a rural area. Caps the amount of funding that a participating transit operator primarily serving an urban area could receive under the program at $2 million. Establishes caps for participating transit operators primarily serving suburban and rural areas at $900,000 and $100,000, respectively. Requires a transit operator selected to participate in the pilot program to match any state money that it receives with local funds. Sunsets the pilot program on January 1, Prohibits a person from operating, parking, stopping, or leaving standing a motor vehicle in a highway or roadway lane that has been designated for the exclusive use of public transit buses. Provides that it is unlawful for an employer to do any of the following: (1) engage in an unfair immigration-related practice against an applicant for employment or an employee; (2) attempt to reinvestigate or reverify an incumbent employee s authorization to work using an unfair immigrationrelated practice; or (3) discriminate against an applicant for employment or an employee with authorization to work based on the specific status, or term of status, that accompanies the authorization to work. Until January 1, 2022, authorizes the Alameda-Contra Costa Transit District (AC Transit) to install automated forward-facing cameras on its public transit vehicles for the purpose of video imaging of parking violations occurring in transit-only traffic lanes. Status 4/12/16 Assembly Floor 4/26/16 Senate Appropriations Committee 5/3/16 Assembly Appropriations Committee 3/28/16 Senate Appropriations Committee 6/29/16 Assembly Floor VTA Position Co- Sponsor Legislative Update Matrix Page 46 of 55

282 6.12.a State Senate Bills Subject Last Amended SB 1063 (Hall) Wage Differential: Race or Ethnicity SB 1066 (Beall) FAST Act SB 1128 (Glazer) Bay Area Regional Commute Benefit Ordinance Prohibits an employer from paying any of its employees at wage rates less than the rates paid to employees of another race or ethnicity for substantially similar work, except where the employer can demonstrate: (1) the wage differential is based on one or more of the following factors: a seniority system; a merit system; a system that measures earnings by quantity or quality of production; or a bona fide factor other than race or ethnicity, such as education, training or experience; (2) each factor relied on is applied reasonably; and (3) the one or more factors relied on account for the entire wage differential. Requires the fund estimate for the State Transportation Improvement Program (STIP) prepared by Caltrans and the California Transportation Commission (CTC) to identify and include federal funds derived from apportionments made to the state under the Fixing America s Surface Transportation (FAST) Act. Conforms state law related to driving under the influence of alcohol to federal law in order to allow California to be eligible to receive certain federal grant funding under the FAST Act. Eliminates the January 1, 2017, sunset date, and indefinitely extends provisions in current law that authorize the Bay Area Air Quality Management District (BAAQMD) and the Metropolitan Transportation Commission (MTC) to jointly adopt a regional commute benefit ordinance requiring certain employers to offer their employees one of three specified commute benefits. Deletes bicycle commuting as a pretax option under the ordinance and, instead, allows an employer covered by the ordinance, at its discretion, to offer commuting by bicycle as an employer-paid benefit. If the covered employer chooses to offer a subsidy to offset the monthly cost of commuting by bicycle, requires such subsidy to be either the monthly cost of commuting by bicycle or $20, whichever is lower. Deletes provisions in current law that require BAAQMD and MTC to jointly report to the Legislature regarding the implementation of the regional commute benefit ordinance. Status 4/20/16 Senate Appropriations Committee 6/29/16 Assembly Appropriations Committee As Introduced Assembly Floor VTA Position Legislative Update Matrix Page 47 of 55

283 6.12.a State Senate Bills Subject Last Amended SB 1141 (Moorlach) Pilot Program: Transferring State Highways to Local Agencies SB 1197 (Cannella) Intercity Rail Corridors: Extensions SB 1259 (Runner) Toll Facilities: Veterans SB 1320 (Runner) California Transportation Commission and SHOPP Projects Establishes a five-year pilot program under which two counties, one in Northern California and one in Southern California, may be selected to operate, maintain and make improvements to all state highways within their respective jurisdictions. For the duration of the pilot program, requires Caltrans to convey all of its authority and responsibility over state highways in a participating county to the applicable county or regional transportation agency that has jurisdiction in the county. Requires the California Transportation Commission (CTC) to administer and oversee the pilot program, and to select the county or counties that will participate no later than January 1, 2018, from applications received by the commission. Provides that participation of a county in the pilot program is voluntary. Specifies that if the CTC is unable to select at least one county to participate in the pilot program by January 1, 2018, because no county has submitted an application, the provisions of the bill shall become inoperative on January 15, For the duration of the pilot program, requires funding to be appropriated as block grants in the annual Budget Act to the participating counties in an amount equivalent to federal and state dollars otherwise to be expended by Caltrans on state highways in those counties, including money for operations, maintenance, capital outlay support, the State Highway Operation and Protection Program (SHOPP), and the State Transportation Improvement Program (STIP). In consultation with Caltrans, requires the CTC to determine the applicable grant amounts for each participating county, and to submit its recommendations to the Governor and the Legislature. Provides that any cost savings realized by a participating county, compared to comparable expenditures that otherwise would have been undertaken by Caltrans on state highways in the county in the absence of the pilot program, may be used by the county for other transportation priorities consistent with eligible expenditures for the funding sources involved, subject to approval by the CTC. At any time after an interagency transfer agreement for an intercity rail corridor between Caltrans and a joint powers board has been executed, allows the agreement to be amended to extend the affected rail corridor to provide intercity rail service beyond the defined boundaries of the corridor. Requires a proposed extension to be recommended and justified in the business plan for the intercity rail corridor by the joint powers board, and to be approved by the California State Transportation Agency (CalSTA). Exempts vehicles registered to a veteran and displaying a specialized veterans license plate from the payment of tolls or other charges on a toll road, high-occupancy toll (HOT) lane, toll bridge, toll highway, vehicular crossing, or any other toll facility. Excludes the California Transportation Commission (CTC) from the California State Transportation Agency (CalSTA) and, instead, establishes the commission as a separate entity in state government to act in an independent oversight role. Requires Caltrans to submit its proposed program of projects for the State Highway Operation and Protection Program (SHOPP) to the CTC. Requires Caltrans to program capital outlay support resources for each project included in the SHOPP. Requires Caltrans to provide the CTC with detailed information for all programmed SHOPP projects, including cost, scope and schedule. Specifies that the CTC is not required to approve the SHOPP in its entirety, as submitted by Caltrans, and may approve or reject individual SHOPP projects programmed by the department. Requires Caltrans to submit to the CTC for approval any changes in a programmed SHOPP project s cost, scope or schedule. Status 4/5/16 Senate Transportation & Housing Committee As Introduced Senate Transportation & Housing Committee 4/21/16 Assembly Veterans Affairs Committee As Introduced Senate Transportation & Housing Committee VTA Position Legislative Update Matrix Page 48 of 55

284 6.12.a State Senate Bills Subject Last Amended SB 1397 (Huff) Highway Changeable Message Signs: Advertising SB 1402 (Pavley) California Low- Carbon Fuels Incentive Program SB 1405 (Pavley) Zero-Emission Vehicles SB 1436 (Bates) Local Agency Executive Compensation SB 1464 (De Leon) Greenhouse Gas Emissions Reduction Programs: Consultation Authorizes Caltrans, subject to federal approval, to enter into an agreement pursuant to a best value competitive procurement process with a contractor to construct, upgrade, reconstruct, and operate a network of changeable message signs within the rights-of-way of the state highway system. Requires the contractor, subject to certain standards established by Caltrans, to contract and receive funds for the placement of advertising on these changeable message signs when they are not being used by the department. Requires revenues derived from advertising on these changeable message signs to be allocated between Caltrans and the contractor. Requires the revenues received by Caltrans to be deposited into the State Highway Account, subject to appropriations by the Legislature. Authorizes Caltrans to adopt guidelines and procedures relative to advertising on changeable message signs. Establishes the California Low-Carbon Fuels Incentive Program to be administered by the California Air Resources Board (CARB), in conjunction with the State Energy Resources Conservation and Development Commission. Authorizes cap-and-trade auction proceeds deposited into the Greenhouse Gas Reduction Fund to be appropriated for the program. Requires the program to provide incentives for the in-state production of low-carbon transportation fuels from new and existing facilities using sustainable feedstock. Requires priority to be given to projects providing direct benefits to disadvantaged communities. Requires the California Air Resources Board (CARB) to conduct a study to determine the feasibility and efficacy of providing grants to public transit agencies to subsidize cost-effective rides serving disadvantaged communities through the use of zero-emission vehicles that are utilized by rental car, transportation network, taxicab, or car-sharing companies in a manner that complements the service provided by the public transit agency. Prior to taking final action on a recommendation related to a local agency executive s salary, salary schedule or compensation paid in the form of fringe benefits, requires the legislative body of the agency to orally report a summary of the recommendation during the open meeting in which the final action is to be taken. In identifying priority programmatic investments, requires the three-year investment plan prepared by the Department of Finance for the expenditure of cap-and-trade auction proceeds deposited into the Greenhouse Gas Reduction Fund to do both of the following: (1) assess how proposed investments interact with current state regulations, policies and programs; and (2) evaluate if and how those proposed investments could be incorporated into existing programs. Requires the investment plan to recommend metrics that would measure progress and benefits from the proposed programmatic investments. Status 5/31/16 Senate Floor 3/28/16 Senate Appropriations Committee 4/13/16 Senate Appropriations Committee 4/6/16 Assembly Floor 4/11/16 Assembly Appropriations Committee VTA Position Legislative Update Matrix Page 49 of 55

285 6.12.a State Senate Bills Subject Last Amended SCA 7 (Huff) Motor Vehicle Fees and Taxes: Restrictions on Expenditures Calls for placing before the voters an amendment to the California Constitution to prohibit the Legislature from borrowing revenues derived from fees and taxes imposed by the state on motor vehicles or their use or operations, and from using these revenues other than for state highways, local streets and roads, and fixed guideway mass transit as specified in Article 19 of the Constitution. Also prohibits these revenues from being pledged or used for the payment of principal and interest on bonds, or for other indebtedness. Requires the revenues derived from that portion of the vehicle license fee that exceeds 0.65 percent of the market value of a vehicle to be used for street and highway purposes. Prohibits the Legislature from borrowing these revenues and from using them other than as specifically permitted. Also prohibits these revenues from being pledged or used for the payment of principal and interest on bonds, or for other indebtedness. Status 5/28/15 Senate Transportation & Housing Committee VTA Position Legislative Update Matrix Page 50 of 55

286 State Senate Bills Subject Last Amended SBX1-1 (Beall) Transportation Funding Proposes to generate approximately $5.5 billion per year in new revenues for transportation purposes from the following sources: (1) an increase in the gasoline excise tax of 12 cents per gallon; (2) an increase in the diesel excise tax of 22 cents per gallon; (3) a registration surcharge of $35 per year imposed on all motor vehicles; (4) a registration surcharge of $100 per year imposed on zero-emission vehicles; (5) a road access charge of $35 per year imposed on all motor vehicles to be collected by the Department of Motor Vehicles (DMV) as part of the annual vehicle registration process; (6) an increase in the diesel sales tax rate of 3.5 percent for the State Transit Assistance Program (STA); (7) an increase in the percentage of cap-and-trade auction proceeds continuously appropriated to the Transit and Intercity Rail Capital Program from 10 percent to 20 percent; and (8) an increase in the percentage of cap-and-trade auction proceeds continuously appropriated to the Low Carbon Transit Operations Program from 5 percent to 10 percent. Requires the repayment of approximately $1 billion in outstanding loans owed by the General Fund to the State Highway Account, the Motor Vehicle Fuel Account, the Highway Users Tax Account (HUTA), and the Motor Vehicle Account by June 30, Beginning July 1, 2019, and every three years thereafter, indexes the gas tax and the diesel excise tax to inflation and the change in average fuel efficiency. Requires the new $35 vehicle registration surcharge and the $35 road access fee to be indexed to inflation on an annual basis. Calls for 12 cents of the 22- cent increase in the diesel excise tax to be deposited into the Trade Corridors Improvement Fund and used for goods movement projects programmed by the California Transportation Commission (CTC). Requires the balance of the revenues generated from the diesel excise tax increase, as well as from the gas tax increase, the road access charge, the two vehicle registration surcharges, and the one-time revenues from the General Fund loan repayments, to be deposited into a new Road Maintenance and Rehabilitation Account. Requires the revenues in the account to be used for the following purposes: (1) road maintenance and rehabilitation; (2) safety projects; (3) railroad grade separations; (4) active transportation and pedestrian/bicycle safety projects in conjunction with any other allowable project; or (5) wildlife crossings. Every year, requires 5 percent of the funds in the Road Maintenance and Rehabilitation Account to be set aside for allocation to counties that currently do not have a local transportation sales tax, but gain voter approval of one after July 1, Requires the CTC to develop guidelines to define the specific methodology that would be used to distribute these funds to eligible counties and to cities within those counties. Requires these funds to be expended for road maintenance and rehabilitation purposes. Allocates the remaining balance in the account after the 5-percent set-aside as follows: (1) 50 percent to Caltrans for state highway maintenance, State Highway Operation and Protection Program (SHOPP) projects, or other eligible purposes; and (2) 50 percent to cities and counties for their local roadway systems. In the latter case, equally divides the funds between cities and counties, with the cities portion being allocated by a formula based on population, and the counties share by a formula based on vehicle registrations and miles of maintained county roads. Establishes a substantial oversight role for the CTC to ensure that the funds allocated from the Road Maintenance and Rehabilitation Account are used by Caltrans and cities/counties in manner that is consistent with performance criteria adopted by the commission related to highway/roadway performance, greenhouse gas emissions, social equity impacts, and public health impacts. Converts the variable gas tax to a fixed rate of 17.3 cents per gallon, which would be indexed every three years to inflation and the change in average fuel efficiency. Requires a total of $550 million in cap-and-trade auction proceeds dedicated to high-speed rail to be set aside for intercity, commuter and urban rail projects. Annually allocates $100 million in cap-and-trade funds to the Active Transportation Program Legislative Update Matrix Page 51 of 55 Status 4/21/16 Senate Appropriations Committee VTA Position Support 6.12.a

287 6.12.a State Senate Bills Subject Last Amended SBX1-2 (Huff) Cap-and-Trade: State Highways and Local Roadways SBX1-3 (Vidak) High-Speed Rail: Bond Funding SBX1-4 (Beall) Transportation Funding: State Highways and Local Roadways SBX1-5 (Beall) Transportation Funding: Trade Corridors and Local Transportation Infrastructure SBX1-6 (Runner) Cap-and-Trade: High-Speed Rail Requires the Legislature to appropriate cap-and-trade auction proceeds generated from the transportation fuels sector for transportation infrastructure, including public streets and highways, but excluding high-speed rail. Specifies that no further bonds shall be sold for high-speed rail purposes pursuant to the Safe, Reliable High-Speed Passenger Train Bond Act for the 21 st Century (Proposition 1A), except as specifically provided with respect to an existing appropriation for early improvement projects related to the Phase I blended system. Upon appropriation by the Legislature, requires the unspent proceeds received from outstanding bonds issued and sold for high-speed rail purposes prior to the effective date of the provisions of this bill to be redirected to retiring the debt incurred from the issuance and sale of those outstanding bonds. Allows the remaining unissued bonds, as of the effective date of the provisions of this bill, that were authorized for high-speed rail purposes to be issued and sold. Upon appropriation by the Legislature, requires the net proceeds from the sale of these remaining unissued bonds to be made available as follows: (1) 50 percent to Caltrans to fund repair and new construction projects on state highways and freeways; and (2) 50 percent to Caltrans to create a program to fund repair and new construction projects on local streets and roads, with each county receiving a base amount of funding, and any additional funding being allocated based on a county s population. Makes no changes to the authorization under Proposition 1A for the issuance of $950 million in bonds for rail purposes other than high-speed rail. Declares the intent of the Legislature to enact statutory changes to establish permanent, sustainable sources of transportation funding to maintain and repair the state s highways, local roads, bridges, and other critical transportation infrastructure. Declares the intent of the Legislature to enact a bill to establish permanent, sustainable sources of transportation funding to improve the state s key trade corridors, and support efforts by local governments to repair and improve local transportation infrastructure. Prohibits the use of cap-and-trade auction proceeds for the state s high-speed rail project. Requires 65 percent of the cap-and-trade auction proceeds deposited into the Greenhouse Gas Reduction Fund to be distributed to the California Transportation Commission (CTC) for allocation to high-priority transportation projects, as determined by the commission. Requires the CTC to allocate these funds as follows: (1) 40 percent to state highway projects; (2) 40 percent to local street/road projects, equally divided between cities and counties; and (3) 20 percent to public transit projects. As Introduced Status Senate Transportation & Infrastructure Development Committee 8/17/15 Senate Transportation & Infrastructure Development Committee 9/4/15 Conference Committee As Introduced As Introduced Assembly Desk Senate Transportation & Infrastructure Development Committee VTA Position Legislative Update Matrix Page 52 of 55

288 6.12.a State Senate Bills Subject Last Amended SBX1-7 (Allen) Diesel Sales Tax SBX1-8 (Hill) Cap-and-Trade: Public Transit Funding SBX1-9 (Moorlach) Caltrans: Architectural and Engineering Services SBX1-10 (Bates) State Transportation Improvement Program Increases the sales and use tax rate on diesel fuel by 3.5 percent. Dedicates the revenues derived from this increase to the State Transit Assistance Program (STA). Restricts the expenditure of these revenues to transit capital projects, or services to maintain or repair a public transit agency s existing vehicle fleet or facilities, including the following: (1) rehabilitation or modernization of existing vehicles or facilities; (2) design, acquisition and construction of new vehicles or facilities that improve existing public transit services or that enable the implementation of future planned services; or (3) services that complement local efforts for repair and improvement of local transportation infrastructure. Increases the amount of cap-and-trade auction proceeds continuously appropriated from the Greenhouse Gas Reduction Fund to the Low Carbon Transit Operations Program from 5 percent to 10 percent, and to the Transit and Intercity Rail Capital Program from 10 percent to 20 percent. Prohibits Caltrans from using any non-recurring funds, including loan repayments, bond funds or grant funds, to pay the salaries or benefits of any permanent civil service position within the department. Beginning on July 1, 2016, requires Caltrans to contract with qualified private entities for a minimum of 15 percent of the total annual value of architectural and engineering services with respect to public works projects undertaken by the department. Increases this percentage each year to a minimum of 50 percent by July 1, Revises the process for programming and allocating the 75-percent share of federal and state funds available for regional transportation improvement programs (RTIPs). Requires the California Transportation Commission (CTC) to compute the annual county share amounts for each county for programming and allocation under the RTIPs. Requires these funds, along with an appropriate amount of capital outlay support dollars, to be appropriated annually through the Budget Act. Upon the enactment of the Budget Act, requires Caltrans to apportion the RTIP county shares for each county as block grants to the applicable regional transportation planning agency (RTPA). Requires the RTPAs to identify the transportation capital improvement projects to be funded with these dollars in their RTIPs. Requires the CTC to incorporate the RTIPs into the State Transportation Improvement Program (STIP). Eliminates the role of the CTC in programming and allocating funding for RTIP projects, but retains certain oversight roles of the commission with respect to the expenditure of these dollars. Repeals provisions in current law governing the computation of county shares over multiple fiscal years. Status 9/3/15 Senate Appropriations Committee As Introduced As Introduced As Introduced Senate Appropriations Committee Senate Transportation & Infrastructure Development Committee Senate Transportation & Infrastructure Development Committee VTA Position Support Support Legislative Update Matrix Page 53 of 55

289 6.12.a State Senate Bills Subject Last Amended SBX1-11 (Berryhill) CEQA: Exemption for Certain Transportation Projects SBX1-12 (Runner) California Transportation Commission Exempts from the California Environmental Quality Act (CEQA) a project that consists of the inspection, maintenance, repair, restoration, reconditioning, relocation, replacement, or removal of existing transportation infrastructure, including highways, roadways, bridges, tunnels, public transit systems, and paths and sidewalks serving either bicycles or pedestrians, if the project meets all of the following conditions: (1) the project is located within an existing right-of-way; (2) any area surrounding the right-of-way that is altered as a result of construction activities that are necessary for the completion of the project will be restored to its condition before the project; and (3) the project applicant agrees to comply with all conditions otherwise authorized by law or imposed by a city or county as part of any local agency permit process that are required to mitigate potential impacts of the project. Prohibits a court in a judicial action or proceeding under CEQA from staying or enjoining a transportation infrastructure project that is included in a regional sustainable communities strategy (SCS) or alternative planning strategy unless the court finds either of the following: (1) the project presents an imminent threat to the public health and safety; or (2) the project site contains unforeseen important Native American artifacts, or unforeseen important historical, archaeological or ecological values that would be materially, permanently and adversely affected by the project unless the court stays or enjoins the project. Excludes the California Transportation Commission (CTC) from the California State Transportation Agency (CalSTA) and, instead, establishes the commission as a separate entity in state government to act in an independent oversight role. Requires Caltrans to submit its proposed program of projects for the State Highway Operation and Protection Program (SHOPP) to the CTC for review by January 31 of each even-numbered year. Requires Caltrans to program capital outlay support resources for each project included in the SHOPP. Requires Caltrans to provide the CTC with detailed information for all programmed SHOPP projects, including cost, scope and schedule. Specifies that the CTC is not required to approve the SHOPP in its entirety, as submitted by Caltrans, and may approve or reject individual SHOPP projects programmed by the department. Requires Caltrans to submit to the CTC for approval any changes in a programmed SHOPP project s cost, scope or schedule. Status 9/4/15 Senate Transportation & Infrastructure Development Committee 8/20/15 Senate Appropriations Committee VTA Position Legislative Update Matrix Page 54 of 55

290 6.12.a State Senate Bills Subject Last Amended SBX1-13 (Vidak) Office of the Transportation Inspector General SBX1-14 (Cannella) Public-Private Partnerships SCAX1-1 (Huff) Motor Vehicle Fees and Taxes: Restrictions on Expenditures Creates the Office of the Transportation Inspector as an independent state government entity to ensure that Caltrans; the California High-Speed Rail Authority; and all other state agencies expending state transportation funds are operating efficiently, effectively, and in compliance with applicable federal and state laws. Requires the Governor to appoint a transportation inspector general, subject to confirmation by the Senate, to a six-year term. Provides that the transportation inspector general cannot be removed from office during that term, except for good cause. Requires the transportation inspector general to review policies, practices and procedures, and to conduct audits and investigations of activities involving state transportation funds in consultation with all affected state agencies. Specifically, requires the transportation inspector general to do all of the following: (1) examine the operating practices of Caltrans, the High-Speed Rail Authority and all other state agencies expending state transportation funds to identify fraud and waste, opportunities for efficiencies, and opportunities to improve the data used to determine appropriate project resource allocations; (2) identify best practices in the delivery of transportation projects, and develop policies or recommend proposed legislation enabling state agencies to adopt these practices when practicable; (3) provide objective analysis of, and when possible, offer solutions to, concerns raised by the public or generated within agencies involving the state s transportation infrastructure and project delivery methods; (4) conduct, supervise and coordinate audits and investigations relating to the programs and operations of all state transportation agencies with state-funded transportation projects; and (5) recommend policies promoting economy and efficiency in the administration of programs and operations of all state transportation agencies with state-funded transportation projects. Prohibits the Office of the Transportation Inspector General from conducting any audit or investigation that would be redundant to or concurrent with any audit or investigation of the same matter. Extends existing statutory authority for Caltrans and regional transportation agencies, including the Santa Clara Valley Transportation Authority (VTA), to utilize public-private partnerships for transportation infrastructure projects indefinitely. Calls for placing before the voters an amendment to the California Constitution to prohibit the Legislature from borrowing revenues derived from fees and taxes imposed by the state on motor vehicles or their use or operations, and from using these revenues other than for state highways, local streets and roads, and fixed guideway mass transit as specified in Article 19 of the Constitution. Also prohibits these revenues from being pledged or used for the payment of principal and interest on bonds, or for other indebtedness. Requires the revenues derived from that portion of the vehicle license fee that exceeds 0.65 percent of the market value of a vehicle to be used for street and highway purposes. Prohibits the Legislature from borrowing these revenues and from using them other than as specifically permitted. Also prohibits these revenues from being pledged or used for the payment of principal and interest on bonds, or for other indebtedness. Status 9/3/15 Senate Appropriations Committee As Introduced As Introduced Senate Transportation & Infrastructure Development Committee Senate Appropriations Committee VTA Position Support Legislative Update Matrix Page 55 of 55

291 7.1 Date: July 28, 2016 Current Meeting: August 4, 2016 Board Meeting: August 4, 2016 BOARD MEMORANDUM TO: Santa Clara Valley Transportation Authority Board of Directors T FROM: SUBJECT: General Counsel, Robert Fabela 30-Year ½-Cent Retail Transactions and Use Tax Ordinance (Ordinance No ) Second Reading and Adoption Policy-Related Action: Yes Government Code Section Applies: No ACTION ITEM RECOMMENDATION: Consider and adopt proposed Ordinance No , An Ordinance of the Santa Clara Valley Transportation Authority Enacting a Transactions and Use Tax, Subject to Adoption by the Electorate, Which Tax to Be Administered by the State Board of Equalization. BACKGROUND: Public Utilities Code Section provides that a retail transactions and use tax ordinance may be adopted by the Board if the voters authorize the enactment at a special election called for that purpose. On June 24, 2016, this Board adopted Resolution , which called for a special election for the purpose of submitting to the voters of Santa Clara County a measure seeking authorization for VTA to enact a 30-year ½-cent retail transactions and use tax for transportation purposes ( Tax Measure ). In order to implement the tax if the voters pass the Tax Measure, the Board must adopt a retail transactions and use tax ordinance. The Board of Directors introduced and considered proposed Ordinance No for a first reading on June 2, Today, VTA staff is submitting the proposed Ordinance No for consideration and proposed adoption by this Board. Ordinance No will be operative only if two-thirds of the voters pass the Tax Measure on November 8, State law mandates that the Board adopt a tax ordinance. DISCUSSION: 3331 North First Street San Jose, CA Administration Customer Service

292 7.1 Ordinance No proposes to impose (a) a tax for the privilege of selling tangible personal property at retail upon every retailer in Santa Clara County, the territory of VTA, at the rate of one-half of one percent on the gross receipts of the retailer from the sale of all tangible personal property sold at retail in Santa Clara County, and (b) a complimentary tax upon the storage, use, or other consumptions in Santa Clara County at the rate of one-half of one percent of the sales price of the property whose storage, use, or other consumption is subject to the tax. The Board is authorized by statute to enact the retail transactions and use tax ordinance required to implement the tax approved by the voters. A copy of the ordinance in the form recommended to be adopted by the Board is attached as Attachment A. For the most part, the provisions contained in Ordinance No are required to be included pursuant to the California Revenue and Taxation Code. By statute, passage of an ordinance by the Board cannot occur on the day of its introduction, but must wait until the next regular meeting of the Board. On June 2, 2016, the proposed Ordinance was first introduced and considered by the Board. Except for correcting several non-substantive typographical errors, no changes have been made to the proposed Ordinance since its introduction. Staff recommends that the Board adopt proposed Ordinance No , as corrected. If the Tax Measure passes in November, and this Board adopts the ordinance at this meeting, then the operative date of the tax ordinance could be as early as April 1, ALTERNATIVES: The Board may choose not to consider and adopt Ordinance at this time. However, a transactions and use tax ordinance does not become operative until the first day of a calendar quarter after at least 110 days have passed since the adoption of the ordinance. Therefore, a delay in the adoption of the Ordinance may delay the operative date of the tax. FISCAL IMPACT: If voters approve the Tax Measure, it would generate an estimated $6.3 billion in 2017 dollars. VTA administration costs of the program would be recovered through direct charges to programs and projects and through VTA's administrative overhead charges. Prepared by: Evelynn Tran, Assistant General Counsel Memo No ATTACHMENTS: Ordinance (PDF) Page 2 of 2

293 7.1.a ORDINANCE NO AN ORDINANCE OF THE SANTA CLARA VALLEY TRANSPORTATION AUTHORITY ENACTING A TRANSACTIONS AND USE TAX, SUBJECT TO ADOPTION BY THE ELECTORATE, WHICH TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION PREAMBLE WHEREAS, the Board of Directors of the Santa Clara Valley Transportation Authority (VTA) deems it advisable to enact a one-half of one percent retail transactions and use tax ordinance in Santa Clara County, with such tax to be limited to thirty years, for the implementation and construction of transportation projects in order to repair potholes and fix local streets; finish the BART extension through downtown San Jose and to Santa Clara; improve bicycle and pedestrian safety; increase Caltrain capacity, in order to ease highway congestion, and improve safety at crossings; relieve traffic on the expressways and key highway interchanges; and enhance transit for seniors, students, low-income, and disabled. The Board of Directors of the Santa Clara Valley Transportation Authority ordains as follows: Section 1. TITLE. This ordinance shall be known as the Silicon Valley Transportation Solutions Tax Ordinance. The Santa Clara Valley Transportation Authority hereinafter shall be called VTA. This ordinance shall be applicable in the territory of VTA, which is the incorporated and unincorporated territory lying within the County of Santa Clara, which shall be referred to herein as Territory. Section 2. OPERATIVE DATE. "Operative Date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance, the date of such adoption being as set forth below. This Ordinance shall only become operative if approved by two-thirds of the voters voting on the measure at the November 8, 2016 Election (VTA Measure). The anticipated Operative Date of this Ordinance will be as early as April 1, Section 3. PURPOSE. This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes: A. To impose and collect retail transactions and use taxes to be used only for the purposes set forth in the VTA Measure, if approved by the voters on November 8, B. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section et. seq. of the Public Utilities Code which authorizes VTA to adopt this tax Ordinance which shall be operative if a two-thirds majority of the electors voting on the VTA Measure vote to approve the imposition of the tax at an election called for that purpose. 1

294 7.1.a C. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. D. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefor that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California State Sales and Use Taxes. E. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance. Section 4. CONTRACT WITH STATE. Prior to the operative date, VTA shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if VTA shall not have contracted with the State Board of Equalization prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract. Section 5. TRANSACTIONS TAX RATE. For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the Territory at the rate of one-half of one percent (0.5%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance. Section 6. PLACE OF SALE. For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization. Section 7. USE TAX RATE. An excise tax is hereby imposed on the storage, use or other consumption in the Territory of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of one-half of one percent (0.5%) of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made. 2

295 7.1.a Section 8. ADOPTION OF PROVISIONS OF STATE LAW. Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein. Section 9. LIMITATIONS ON ADOPTION OF STATE LAW AND COLLECTION OF USE TAXES. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code: A. Wherever the State of California is named or referred to as the taxing agency, VTA shall be substituted therefor. However, the substitution shall not be made when: 1. The word "State" is used as a part of the title of the State Controller, State Treasurer, Victim Compensation & Government Claims Board, State Board of Equalization, State Treasury, or the Constitution of the State of California; 2. The result of that substitution would require action to be taken by or against VTA or any agency, officer, or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this Ordinance. 3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to: a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or; b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code. 4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code. B. The words within the territory of VTA shall be substituted for the words "in this State" in the phrase retailer engaged in business in this State in Section 6203 and in the definition of that phrase in Section Section 10. PERMIT NOT REQUIRED. If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this ordinance. 3

296 7.1.a Section 11. EXEMPTIONS AND EXCLUSIONS. A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax. B. There are exempted from the computation of the amount of transactions tax the gross receipts from: 1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government. 2. Sales of property to be used outside the Territory which is shipped to a point outside the Territory, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the Territory shall be satisfied: a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-territory address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and b. With respect to commercial vehicles, by registration to a place of business out-of-territory and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address. 3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance. 5. For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this Territory of tangible personal property: 4

297 7.1.a 1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance. 2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and of the Revenue and Taxation Code of the State of California. 3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance. 5. For the purposes of subparagraphs (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. 6. Except as provided in subparagraph (7), a retailer engaged in business in the Territory shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the Territory or participates within the Territory in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the Territory or through any representative, agent, canvasser, solicitor, subsidiary, or person in the Territory under the authority of the retailer. 7. A retailer engaged in business in the Territory shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the Territory. D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax. 5

298 7.1.a Section 12. AMENDMENTS. All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance. Section 13. ENJOINING COLLECTION FORBIDDEN. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or VTA, or against any officer of the State or VTA, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. Section 14. SEVERABILITY. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. Section 15. EFFECTIVE DATE. This ordinance relates to the levying and collecting of VTA s transactions and use taxes and shall take effect upon compliance with Public Utilities Code Section and approval by two-thirds of the voters voting on the VTA Measure at the November 8, 2016 Election. Section 16. TERMINATION DATE. The authority to levy the tax imposed by this ordinance shall expire on the thirtieth anniversary of the operative date (with the last operative date anticipated to be March 31, 2047). PASSED AND ADOPTED by the Board of Directors of the Santa Clara Valley Transportation Authority, State of California, on, by the following vote: AYES: NOES: Attest: ABSENT: CINDY CHAVEZ, Chairperson ELAINE BALTAO, Board Secretary Approved as to Form: ROBERT FABELA, General Counsel 6

299 7.2 Date: July 15, 2016 Current Meeting: August 4, 2016 Board Meeting: August 4, 2016 BOARD MEMORANDUM TO: THROUGH: FROM: SUBJECT: Santa Clara Valley Transportation Authority Board of Directors General Manager, Nuria I. Fernandez Director of Engr. & Trans. Infrastructure Dev., Carolyn M. Gonot On-Call Systems Engineering Design Consultant Services Policy-Related Action: No Government Code Section Applies: Yes ACTION ITEM RECOMMENDATION: Approve an eligible list of fifteen on-call systems engineering consultants to provide professional services on projects that include, but are not limited to, the following categories: Rail Rehabilitation (Trackwork), Traction Power Substation (TPSS), Overhead Contact System (OCS), Signals, Communications, and Facility Electrical System Work; and authorize the General Manager to execute contracts to firms on this list. The list will be valid for a five-year period. The total amount of all contracts shall not exceed $10,000,000. BACKGROUND: VTA has utilized on-call lists of engineering firms over the years in order to expedite the delivery of projects. Many times the project schedules are driven by funding constraints, therefore the ability to get a design consultant on-board and started has enhanced our ability to deliver the project successfully. Also, we are able to use these specialty engineering firms to assist us in performing assessments of our systems so that we can better determine project scopes. The previous on-call engineering list expired; however, VTA requires the technical expertise of engineering consultants to address various rehabilitation and improvement projects to the VTA light rail system and facilities. The list of qualified firms establishes experts in each category to provide on-call services to VTA. The on-call list will be used to procure services for specific projects depending on the disciplines required. Generally, proposals will be requested from one or more firms from the appropriate pre-qualified list established by this procurement. Because firms would be deemed pre-qualified through this procurement, it is expected that the selection process for the specific project(s) would be much shorter than a selection process through a customary RFP process North First Street San Jose, CA Administration Customer Service

300 7.2 Firms will be required to establish a team to accomplish future on-call scopes of work, and these teams will be required to meet the established SBE/DBE goals for upcoming task orders. On April 22, 2016, VTA issued a formal Request for Proposal (RFP) S16027 for On-Call Systems Engineering Design Services and a subsequent Addendum 1 on May 12, VTA sought proposals from qualified firms to accomplish the above by creating new lists of eligible firms in the following six specialty categories: Rail Rehabilitation (Trackwork) Traction Power Substation (TPSS) Overhead Contact System (OCS) Signals Communications Facility Electrical System Work DISCUSSION: The following fifteen firms submitted proposals (firms are listed in alphabetical order): AECOM Technical Services, Inc. CH2M Hill, Inc. Diverging Approach, Inc. Faith Group Gannett Fleming, Inc. HNTB Corporation LTK Engineering Services Lamoreaux Associates Robert Murphy Consulting PGH Wong Engineering, Inc. Parsons Transportation Group Progress Rail Services Rail Surveyors & Engineers, Inc. Stantec Consulting Services, Inc. Urban Engineers The review board consisted of a Deputy Director, two Engineering Group Managers, and a Senior Transportation Engineer to evaluate the proposals. The proposals were evaluated using the following evaluation criteria: Qualification of Firm, Staffing and Project Organization, Project Understanding, and Local Firm Preference. The review board evaluated each proposal based on the above criteria, and also evaluated the firm s strengths and weaknesses in each specialty area for which the firm was seeking consideration. Based on this evaluation, the review board established the qualified list of consultants for on-call systems engineering design services (Attachment A). The list could be used by VTA in the assessment, evaluation, design, and engineering services of various projects based on specialized needs. Interviews were not conducted nor deemed necessary due to the quality of the proposals and the Page 2 of 3

301 7.2 familiarity of staff with previous work performed by the majority of firms who submitted proposals. All proposals were deemed qualified and placed on the on-call list. The firms were selected based on their specialized area(s) of expertise and qualifications as shown in Attachment A. Assignment of work to consultants on the attached list would follow VTA s procedures for selecting consultants from established lists. Based on the required area(s) of expertise for a given project, these procedures include requesting proposals from a sufficient number of consultants on the list. Proposals would be solicited from consultants possessing the specific skills required by the project. The selection of a consultant would be made based on the proposal that is deemed to best meet the evaluation criteria for the specific project. ALTERNATIVES: An individual request for proposal could be issued for each engineering task/project requiring professional services. However, this approach would significantly limit VTA flexibility to be responsive to design and construction needs and could result in longer project development durations. FISCAL IMPACT: Funds for a contract are encumbered upon execution of each task order. Staff estimates that up to $10,000,000 may be expended for systems engineering design services over the next 5 years. The cost of all design services will be accounted for and included in the capital project budgets as approved by the VTA Board. Budget appropriation for existing projects requiring rehabilitation, trackwork, systems, and facilities engineering services are included in the VTA Biennial Capital Budgets. SMALL BUSINESS ENTERPRISE (SBE) OR DISADVANTAGED BUSINESS ENTERPRISE (DBE) PARTICIPATION: Small Business Enterprise (SBE) or Disadvantaged Business Enterprise (DBE) goals will be set on individual task orders based on the project funding source and the determination of subcontracting opportunities for each assignment of work. Prepared by: Adolf Daaboul, Sr. Transportation Engineer Memo No ATTACHMENTS: 5573 Attachment A_RFP S16027 List of Qualified Firms with Address (PDF) Page 3 of 3

302 7.2.a General Categories/Special Areas: A - Rail Rehabilitation (Trackwork) B - Traction Power Substation (TPSS) C - Overhead Contact System (OCS) ATTACHMENT A RFP S16027 ON-CALL SYSTEMS ENGINEERING DESIGN SERVICES D - Signals E - Communications F - Facility Electrical System Work Item No. Consultant Contact Office Address Categories/Areas for which Consultant was Selected 1 AECOM Technical Services, Inc. Simon Kim 100 W. San Fernando St., Suite 200, San Jose, CA B, F 2 CH2M Hill, Inc. Jon McDonald 1737 N. First Street, Ste 300, San Jose, CA A, B, E 3 Diverging Approach, Inc. Joseph Stanko 6296 Shaker Drive, Riverside, CA D, E 4 Faith Group Wendy Wilke 3101 S. Hanley Road, St. Louis, MO E 5 Gannett Fleming, Inc. Michael T. McNamara 881 Sneath Lane, Suite 210, San Bruno, CA A, B, C, D, E, F 6 HNTB Corporation Darlene K. Gee 1735 Technology Dr., Suite 650, San Jose, CA B, C 7 LTK Engineering Services George N. Dorshimer 100 West Butler Avenue, Ambler, PA B 8 Lamoreaux Associates Steve Lamoreaux 4855 Stoneyford Ct., San Jose, CA E 9 Robert Murphy Consulting Robert E. Murphy 78 Hillcrest Drive, Orinda, CA E 10 PGH Wong Engineering, Inc. Peter G.H. Wong 182 2nd Street, Suite 500, San Francisco, CA A, B, C, D, E, F 11 Parsons Transportation Group Inc. Chad Carter 100 W. Fernando St., Suite 450, San Jose, CA B, C, E 12 Progress Rail Services Robert E. Powell 1600 Progress Drive, Albertville, AL D 13 Rail Surveyors & Engineers, Inc. Phil Leong Oak View Circle, Morgan Hill, CA A, B, C, D, E, F 14 Stantec Consulting Services, Inc. Ron Creswell 1340 Treat Blvd., Suite 300, Walnut Creek, CA B, C, E 15 Urban Engineers Al Scala 505 S. Flower Street, Los Angeles, CA B, C, E, F

303 Date: August 1, 2016 Current Meeting: August 4, 2016 Board Meeting: August 4, 2016 BOARD MEMORANDUM TO: Santa Clara Valley Transportation Authority Board of Directors THROUGH: General Manager, Nuria I. Fernandez FROM: SUBJECT: Chief Operating Officer, Inez Evans CAD/AVL Replacement Contract Award Policy-Related Action: No Government Code Section Applies: Yes ACTION ITEM RECOMMENDATION: Approve the following actions: 1. Authorize the General Manager to execute a contract with Clever Devices Ltd. in an amount not to exceed $15,137,975 for the purchase, installation and implementation of a the Computer Aided Dispatching and Automatic Vehicle Location (CAD/AVL) system with an annually exercisable option for Software Maintenance and Hardware Warranty for years 4 to 10 in the amount of $480,375 per year; 2. Augment the VTA Transit Fund Capital Budget by $23,748,738. BACKGROUND: In 2003, VTA completed an upgrade of its radio and fleet management system that included the installation of a CAD/AVL system to provide an effective communication system, enhance transit service and safety, improve daily operational performance and incident management, and increase visibility of day-to-day operational data. The CAD/AVL system is the primary system used by the Operations Control Center (OCC) dispatchers to manage both revenue service and support vehicles. VTA s CAD/AVL system includes in-vehicle mobile data terminals integrated with a Global Positioning System (GPS). It features on-time performance monitoring, managed voice communications, next-stop announcements, automatic passenger counting, and real-time passenger information. Operators rely on the system as the primary form of communication with OCC. It is an important component in keeping a safe and secure transit service. The current CAD/AVL system has been in operation for more than 13 years and is a mission North First Street San Jose, CA Administration Customer Service

304 critical system for VTA. However, the software portion of the system lacks functionality available in current technologies. The on-board equipment failure rate is increasing and availability of parts is very scarce. The current vendor does not support or manufacture the current system. The CAD/AVL system is in need of replacement. DISCUSSION: In June 2014, the Board of Directors approved replacing the CAD/AVL system through a competitive negotiation process. The CAD/AVL replacement project is a multi-million dollar procurement requiring specialized expertise to design and install. An extensive procurement process is necessary in order to select the best value CAD/AVL product for VTA. Procurement Process: On September 1, 2015, VTA issued a Request for Proposals (RFP) to engage qualified firms to provide a predominantly off-the-shelf Advanced Communications System (ACS) using Computer-Aided Dispatching and Automatic Vehicle Location technologies (CAD/AVL) to manage its fixed-route bus and light rail vehicle revenue and non-revenue operations. VTA received four proposals from Clever Devices, Ltd, Init Innovations in Transportation, Inc., IVU Traffic Technologies, Inc., and Trapeze Software Group, Inc. Clever Devices, Ltd, Init Innovations in Transportation, Inc., and Trapeze Software Group, Inc. advanced to the Oral Interview and System Demonstration phase of the procurement. The table below summarizes the procurement activities: Procurement Phase Date Written Proposal Evaluation December January 2016 Oral Interview and System Demonstration February 12-18, 2016 On-site evaluation of peer agencies March 28-April 1, 2016 CAD/AVL implementation Negotiations April 20-July 12, 2016 All proposals, interviews, system demonstrations, and on-site evaluations were conducted by a selection panel consisting of VTA staff representing Service and Operations Planning, Technology, and Transportation, with assistance from Purchasing staff. Each proposal was evaluated on the following criteria: Qualification of the Firm Project Staff Qualifications Proposed Solution, Technical Approach and Work Plan Project Plan Compliance with System Requirements System Warranty & On-going Support Cost Page 2 of 4

305 Advanced Communications System (ACS) CAD/AVL firm selection: A CAD/AVL system is a specialized product subject to rapid technological change. Clever Devices demonstrated a superior understanding of the project scope and presented the best technical fit and flexibility for VTA s CAD/AVL requirements. Clever Devices CAD/AVL implementation experience is excellent and the firm demonstrated a high-quality product. In addition, the costs were appropriate and reasonable. The Selection Team deemed this firm highly qualified in every criterion and the best value investment for VTA. Clever Devices Ltd Contract: Item Total Notes Advanced Communications System $13,106,123 includes 3-year software maintenance/hardware warranty & bond Options (selected) $1,471,589 AVL for Portable Radios, Clipper Single Point Login, Mechanical Events software, SAP Work Order Integration, Standard Operating Procedures Display, Turn by Turn Directions, Training Videos, Division Dispatcher/ Maintenance Training, Operator Card Log-in, Trapeze OPS integration Sales Tax $560,263 Total $15,137,975 Extended Software Maintenance/Hardware Warranty (Clever Devices): The software maintenance and hardware warranty for the first three years is included in the base contract. As part of the negotiations, also included in the contract is an annually exercisable option for VTA to extend the software maintenance and hardware warranty for years 4 to 10 at an annual cost of $480,375. The current annual software maintenance fee of $60,000 and approximately $83,000 hardware repairs on the legacy system will no longer be required resulting in a net increase of $337,375 in the annual software maintenance and hardware warranty. CAD/AVL Project Augmentation: A portion of the required budget for the project was included in a previous budget cycle in order to facilitate the initial stages of project scope definition and request for proposal development. Now that the scope has been finalized and the installation/implementation contract negotiated, the overall cost of the CAD/AVL replacement project including design, installation and implementation along with all software, hardware, equipment, services, staff labor and contingency is estimated to be approximately $28.7 million. Staff requests that the Board authorize an augmentation to the VTA Transit Fund Capital Budget for the additional $23,748,738 required for this project. Clever Devices Contract- Purchase/Installation/Implementation $15,137,975 Other project components including hardware/software, consulting $13,570,000 support services, radio equipment, staff labor and contingency Total CAD/AVL Project Budget $28,707,975 Less: Previously Appropriated ($4,959,237) Required Additional Appropriation $23,748,738 (funded by VTA s Debt Reduction Fund) Page 3 of 4

306 ALTERNATIVES: The Board of Directors could reject this proposer and require staff to repeat the RFP process or award the contract to another proposer. This would result in unpredictable consequences, a project delay of at least six months, and a selection of a product that is not best value for VTA. These alternatives are not recommended because of the mission critical nature of this procurement. FISCAL IMPACT: This action will authorize up to $15,137,975 for the purchase, installation, and implementation of the Computer Aided Dispatching and Automatic Vehicle Location system and add $23,748,738 to the FY17 VTA Transit Fund Capital Budget. The increased appropriation will be funded by VTA s Debt Reduction Fund. In addition, this action will authorize an exercisable annual software maintenance and hardware warranty for years 4 to 10 for $480,375 per year. Appropriation for the software maintenance and hardware warranty, if exercised, will be included in subsequent Biennial Operating Budgets. SMALL BUSINESS ENTERPRISE (SBE) PARTICIPATION: VTA has not established a specific Small Business Enterprise (SBE) goal for this project. However, Clever Devices was requested to make every effort to meet VTA s overall agency goal of 19% and is currently at 5.7%. Prepared by: Joonie Tolosa Memo No ATTACHMENTS: AttachmentA_government_section_code_84308_CAD-AVL (PDF) Page 4 of 4

307 Attachment A CAD/AVL Replacement Contract Award List of Consultant(s)/Contractor(s) Firm Name Contact Location Clever Devices Ltd. Saundra Graman Vice President of Strategic Accounts Clever Devices Ltd. 300 Crossways Park Drive Woodbury, NY 11797

308 7.4 Date: July 27, 2016 Current Meeting: August 4, 2016 Board Meeting: August 4, 2016 BOARD MEMORANDUM TO: THROUGH: FROM: SUBJECT: Santa Clara Valley Transportation Authority Board of Directors General Manager, Nuria I. Fernandez Chief Financial Officer, Raj Srinath Service and Sponsorship for Levi's Stadium Events Policy-Related Action: Yes Government Code Section Applies: Yes ACTION ITEM RECOMMENDATION:. 1. Approve a pilot light rail season pass for Forty Niners games at Levi s Stadium, priced at $149 per season. 2. Approve a pilot round trip light rail pass of $20 for each Forty Niners home game for sale to the general public. 3. Authorize the General Manager to execute a sponsorship agreement with the Forty Niners SC Stadium Company LLC. BACKGROUND: VTA has provided excellent service to Levi s Stadium since its inception and has supported the Stadium and the City of Santa Clara in ensuring an excellent user experience for Super Bowl 50. Although VTA has recently streamlined its operations and reduced its operating costs for providing service to Levi s Stadium on event days, the significantly higher level of service VTA provides on event days continues to be a significant expense and difficult to sustain on an ongoing basis. VTA has a responsibility to ensure that the service is sustainable and contributes positively to its farebox recovery. DISCUSSION: VTA has been in discussions with the Forty Niners to explore opportunities to recoup the additional expenses VTA incurs for providing enhanced service on game days, and make VTA s service sustainable. One of the options that staff would like to explore on a pilot basis is to 3331 North First Street San Jose, CA Administration Customer Service

309 7.4 provide express light rail service with limited stops and priority boarding available to the holders of a commemorative Forty Niners season transit pass, that will be valid on all VTA light rail service on days the Forty Niners have a preseason or regular season home game. The pass will not be valid for any other event at Levi's Stadium or on any other day. For patrons who may not need a season transit pass, the service may be accessed by purchasing a special round trip pass for $20, which will be sold for Forty Niners preseason or regular season games only. The sponsorship agreement with the Forty Niners will give VTA the right to use specific Forty Niners logos on the commemorative transit pass and will give the Forty Niners the right to use the VTA logo in their marketing materials. The Forty Niners will market the fare products to their season ticket holders in blasts as well as two (2) thirty second in-game advertisements per game. VTA will be entitled to keep all fare revenues from sales of the commemorative fare media up to $500,000 per season. Fare sales in excess of $500,000 will be shared equally with the Forty Niners. ALTERNATIVES: The Board could choose to not have a sponsorship agreement with the Forty Niners and continue to fund the service with existing resources. FISCAL IMPACT: VTA could potentially receive proceeds from the sales of commemorative fare media up to $500,000 per season, and 50% of any commemorative fare media sales in excess of that amount. Prepared by: Raj Srinath Memo No Page 2 of 2

310 Attachment A Service and Sponsorship for Levi's Stadium Events List of Consultant(s)/Contractor(s) Firm Name Name Role Location Forty Niners SC Stadium Company, LLC Brent Schoeb Vice President, Corporate Partnerships Forty Niners SC Stadium Company, LLC 4949 Centennial Blvd Santa Clara, CA Al Guido President 4949 Centennial Blvd Santa Clara, CA 95054

311 7.5 Date: July 28, 2016 Current Meeting: August 4, 2016 Board Meeting: August 4, 2016 BOARD MEMORANDUM TO: FROM: SUBJECT: Santa Clara Valley Transportation Authority Board of Directors Auditor General, Bill Eggert Alum Rock BRT Construction Delay Assessment Policy-Related Action: No Government Code Section Applies: No ACTION ITEM RECOMMENDATION: Review and receive the Auditor General's report on the Alum Rock Bus Rapid Transit Project Construction Delay Assessment. BACKGROUND: The Alum Rock/Santa Clara (AR/SC) Bus Rapid Transit (BRT) Project will provide just over seven miles of limited-stop rapid transit service from the Eastridge Transit Center to the Arena Station in downtown San José via Capitol Expressway, Alum Rock Avenue and Santa Clara Street. This now $148 million project includes installation of new, bus-only lanes on Alum Rock Avenue between U.S. 101 and I-680 that will allow the BRT vehicles to bypass automobile congestion. It will also include new rail-like stations allowing for fast, all-door boarding. This 2000 Measure A-funded project will enhance the local community by providing increased mobility and other long-term benefits. The project began construction in late summer A number of incidents and concerns, primarily affecting the approximately 1.5 mile long Alum Rock section, led VTA to the difficult and exceptional decision in July 2015 of halting work under the prime contract. Since then, VTA has aggressively pursued completion of the project and mitigation of the impacts to help ensure the continued commerce, vitality, and quality of life in the affected area. At its January 2016 meeting, the Board, at the request Director Rose Herrera and following the recommendation of the Governance & Audit Committee, tasked the VTA Auditor General s Office with performing an independent analysis of the Alum Rock BRT project. This action is in keeping with VTA s commitment to ongoing improvement through independent review. The 3331 North First Street San Jose, CA Administration Customer Service

312 7.5 purpose was to determine the factors that resulted in construction delays to the project and to provide recommendations for improved delivery of future VTA construction projects. DISCUSSION: The Alum Rock BRT Construction Delay Assessment was initiated in January The project scope can summarized as the following: A. Reviewing all relevant project plans, schedules, contracts, public notices and other documentation, from construction inception to throughout its progress, to determine any deviations from the original plan. B. Interviewing relevant VTA, partner agency, and regulatory jurisdiction staff and elected officials involved with the project to determine levels of intergovernmental coordination, cooperation and communication and if respective roles and responsibilities were clearly defined and monitored. C. Interviewing members of the public, businesses, chambers of commerce, and community groups, primarily those adversely affected by the construction, to determine if the levels of community outreach, public input and feedback, issue resolution, and access to VTA management were appropriate given both the initial project scope and schedule as well as the changed conditions. The Auditor General s report on the Alum Rock Bus Rapid Transit Project Construction Delay Assessment, shown on Attachment A, is divided into four sections. Each section includes the Auditor General s finding on specific factors contributing to the delayed completion of the Alum Rock BRT Project as well as recommended actions to enhance delivery of future VTA construction projects. The four sections are: Construction Process Contracting Communications Planning & Design Coordination The Auditor General s report was presented at the May Governance & Audit Committee and June Downtown East Valley Policy Advisory Board (PAB) meetings. The final report, which includes management s commitments for corrective action, is scheduled for Board of Directors consideration at its August 4, 2016 meeting. VTA management agreed with all the Auditor General Office s recommendations and committed to implement them. Most have already been implemented while those remaining will be completed by the end of While all recommendations will enhance delivery of future VTA construction projects, those applicable to the remaining portions of the Alum Rock/Santa Clara BRT Project have been applied where practical. Recommendations for improvement or efficiency opportunities contained in this report are presented for the consideration of VTA management, which is responsible for the effective implementation of any action plans. Page 2 of 3

313 7.5 FISCAL IMPACT: There is no financial impact associated with acceptance of this report. STANDING COMMITTEE DISCUSSION/RECOMMENDATION: The Governance & Audit Committee considered this item at its May 5, 2016 meeting as part of its Regular Agenda. The committee unanimously recommended Board approval of this item and placement on the Board s Regular Agenda. Prepared by: Bill Eggert, Auditor General & Stephen Flynn, Advisory Committee Coordinator Memo No ATTACHMENTS: A--AR BRT Delay Assessment (PDF) Page 3 of 3

314 7.5.a ALUM ROCK BUS RAPID TRANSIT (BRT) Project Delay Assessment Auditor General Briefing May 5, RSM US LLP. All Rights Reserved.

315 Alum Rock/Santa Clara Bus Rapid Transit Project PROJECT DETAILS 7 miles of limited-stop rapid transit service from the Eastridge Transit Center to the Arena Station First BRT Project in Bay Area Total project budget: Initial $114M; now $148M ($34M increase) Alum Rock section construction (estimated cost): Original estimate $57M (bid award $54M) Current forecast $72M ($15M increase) SCHEDULE 1999 Major Investment Study (MIS) begun 2008 VTA Board adopts Bus Rapid Transit as the mode Spring 2013 Final design completed Fall 2013 Spring 2014 Planned utility relocation November 2013 Contract awarded January 2014 Planned construction start date October 2015 Planned construction end date Fall 2013 Spring 2016 Actual utility relocation April 2014 Actual construction start date (3 months behind) January 2017 Forecast major construction end (15 months late) Due to the delays and community impacts along the Alum Rock portion of the project, the VTA Board asked the Auditor General to assess what the issues were that caused the delay and make recommendations for future projects a

316 Alum Rock Project Background 7.5.a ALUM ROCK PROJECT DETAILS 1.4-mile corridor in the center of the BRT Project Required construction of a dedicated median bus-only lane, new stations, and new stoplights. Neighborhood setting with retail fronting the street Alum Rock Ave. and North King Rd. 2

317 7.5.a Observations Construction Process Contracting Communications Planning & Design Coordination 3

318 7.5.a Construction Process 4

319 7.5.a On-Schedule Completion DESIRED OUTCOME Project delivered safely, on time, within scope, on budget and with minimal community impact ACTUAL OUTCOME & CONTRIBUTING FACTORS Project delays project planned for 674 days, demobilization occurred Currently at 874 days as of April 2016 (7 months behind schedule) Contractor did not have required VTA-approved 120-day schedule in place (submitted inadequate baseline schedule for VTA to grant approval) Change orders early in the project gave contractor opportunity for delays (contract awarded November 2013, first change notice in January 2014) Contractor did not work on other parts of the project when one section was delayed (atypical of contractors requires more VTA leadership & contract leverage) Pressure to start construction concurrently with utility relocation project completion schedule driven by BRT fleet delivery schedule 5 RECOMMENDED ACTIONS Ensure the bid goes out fully-developed to minimize change orders Insert and enforce contract penalties for failure to perform, including scheduleadherence by contractor Develop contingency plans for contractor non-performance

320 7.5.a Safety DESIRED OUTCOME Safety of public and workers throughout construction ACTUAL OUTCOME & CONTRIBUTING FACTORS Old infrastructure throughout project area preparation for legacy infrastructure not taken into account (ground penetrating radar used sparingly) Contractor hit gas line 3 times during construction (hit 18 utilities total) Contractor appears to lack experience in utility intensive construction (80% of contractor s experience is in new developments) RECOMMENDED ACTIONS Ensure radar scan requirement is a component in future contracts Utility relocations should be included as part of the pre-construction process 6

321 Minimize Community Impacts 7.5.a DESIRED OUTCOME Proper coordination of construction activities to minimize community impacts ACTUAL OUTCOME & CONTRIBUTING FACTORS Speed of schedule was prioritized over minimizing community impacts Contractor tried to make up time by shutting down one side of the street (several months at a time) with VTA approval highly unusual to not work in smaller sections RECOMMENDED ACTIONS Major goal in construction contracts should be to minimize community impacts (e.g. develop schedules that minimize community disruption) Outline acceptable work plans in contract to ensure community impact is minimized (e.g. perform work in sections of the street in shorter increments to minimize impacts to businesses) 7

322 7.5.a Contracting 8

323 7.5.a Contractor Qualification DESIRED OUTCOME Bid awarded to the lowest qualified, responsible, and responsive bidder ACTUAL OUTCOME & CONTRIBUTING FACTORS Contractor lacked experience for this type of work (80% of work in new developments without utilities) Contractor did not adequately manage subs (VTA arranged and ran meetings to coordinate contractors and subcontractors) Contractor later acknowledged incomplete/deficient plans and specifications yet still submitted a bid RECOMMENDED ACTIONS Ensure bid scope requires contractor to have adequate experience for project Ensure the right vendor Project Manager is assigned for the contract Insert required qualifications into contract for key personnel Verify contractor s experience and qualification after receipt of bid 9

324 7.5.a Contractor Expectations DESIRED OUTCOME Bid and contract should set clear expectations and requirements ACTUAL OUTCOME & CONTRIBUTING FACTORS Incomplete or deficient plans and specifications 510 requests for information submitted (2-3 times the average for a comparable project) Utilized standard low-bid contracting mechanism which limits VTA s options RECOMMENDED ACTIONS Provide more specific contract requirements and guidelines Set up additional processes in bid documents and contracts to ensure that priority expectations are met and impacts are minimized, utilizing interim milestones and liquidated damages Include performance incentives in contract document Nonperformance can be considered in evaluating future contractor bids 10

325 7.5.a Scope Definition DESIRED OUTCOME Bid package is developed to minimize change orders ACTUAL OUTCOME & CONTRIBUTING FACTORS Bid package (design and specifications) was not complete Various change orders occurred (26 total change orders from contract start through November 2015) City of San Jose/VTA consensus on design was not reached prior to bid (City rejected portions of VTA permit application) RECOMMENDED ACTIONS Ensure consensus on all design issues are established prior to bid process Provide status reports to an active Policy Advisory Board (PAB) Report regularly to a standing committee of the VTA Board 11

326 Contract and Policy Compliance 7.5.a DESIRED OUTCOME: VTA and contractor comply with the requirements of the contract, VTA construction administration policies, and procedures to mitigate risks ACTUAL OUTCOME & CONTRIBUTING FACTORS VTA did not receive the construction permit prior to contract award VTA chose not to pursue surety bond (to expedite project) Inadequate frequency of progress reporting at the start of construction Insufficient insurance coverage for City of San Jose and subcontractors 12 RECOMMENDED ACTIONS Ensure that all pre-construction activities have been scheduled properly such as right-of-way acquisition, demolition, utility relocation, and permits prior to start of construction as required by the VTA policies and procedures VTA should continue to consider its right to recover costs under the surety bond for contractor s non-performance Start weekly progress reporting prior to the first week of construction Ensure consistent review of proper coverage and limits per contract Develop early warning system to ensure contract compliance

327 7.5.a Communications 13

328 7.5.a Public Messaging DESIRED OUTCOME Accurate, effective, linguistically and culturally appropriate communications Clear public understanding of project impacts and benefits ACTUAL OUTCOME & CONTRIBUTING FACTORS VTA s Environmental outreach started positively and was well received, but efforts and message inconsistent during Alum Rock construction Several different people from VTA and contractor were communicating with the public resulting in inconsistent messaging VTA s Community Outreach department was affected by staff turnover and lack dedicated staff assigned to the project 14 RECOMMENDED ACTIONS Centralized communications with one point of contact for the public Provide sufficient resources with appropriate, qualified skills and public outreach experience Contract for the most appropriate community outreach staff as needed Open field office 3 months before construction begins with regular visits from engineering and construction personnel

329 7.5.a Response to Inquiries DESIRED OUTCOME: Prompt and accurate responses are provided to public inquiries ACTUAL OUTCOME & CONTRIBUTING FACTORS Community perception was that inquiries were not responded to timely Project was in hiatus for one month without an official public statement Estimated planning and construction dates, and/or duration of work, often inaccurate 15 RECOMMENDED ACTIONS Create a running log of inquiries, responses, and outcomes to facilitate rapid and accurate response Identify one primary person with designated backup, to ensure consistent messaging Communicate to the public on a weekly basis (at minimum) Need to have a more targeted outreach strategy, where community organizations are lacking

330 Build Community Understanding Prior to Construction DESIRED OUTCOME: Community understands the costs, benefits, challenges, and opportunities of the project 7.5.a ACTUAL OUTCOME & CONTRIBUTING FACTORS Community expressed limited knowledge of construction, construction impacts, and permanent impacts (i.e. light rail or BRT and parking impacts) VTA provided notification and meetings but did not fully succeed in educating the public VTA did not continually sell the project benefits to the community 16 RECOMMENDED ACTIONS Open field office for future projects at least 3 months in advance of construction (in addition to the standard communication and notification plan) Develop a consistent team to provide uniform messaging throughout construction Conduct several informal meetings in the community Consider developing a Business Advisory Committee to solicit input

331 7.5.a Planning and Design Coordination 17

332 7.5.a Coordinated Process DESIRED OUTCOME: Coordinated process which is well integrated and understood that delivers minimal impact ACTUAL OUTCOME & CONTRIBUTING FACTORS Siloed approach internally no construction review during design phase City and VTA did not reach 100% consensus on design Lack of multi-agency, coordinated leadership no strong voice to communicate benefits and impacts (VTA, City, County, others) RECOMMENDED ACTIONS Perform short, concentrated project framing workshop to ensure staff-level consensus and consensus with the City Ensure that consensus with the City and its partners are established on all issues prior to going out for bid Ensure that the Policy Advisory Board and standing Board subcommittee has consistent and recurring input on the project Create working groups with other transit agencies/dot s performing BRT projects 18

333 7.5.a Best Practices Cleveland OH Health Line Schedule avoided major events during construction Relationship with local Community Development Corporation and businesses to better understand concerns of business owners Defined roles for lane closure, parking relocation, and street maintenance Ambassador program & construction hotline New York NY - 34 th St Select Bus Service Commercial block construction on weekday nights Residential construction during the day Maintaining two-way traffic Full coordination with City and MTA 19

334 7.5.a Best Practices Eugene Oregon - EmX Line Met with owners along the corridor Weekly project updates Coffee and chat meetings along the corridor during construction Chicago IL Loop Link Performed utility relocation prior to construction Established a business advisory committee Clearly identified project impacts Demonstrated need for impacts Design consensus between City and CTA 20

335 7.5.a Appendix 21

336 7.5.a Category On-Schedule Completion Recommendations Recommendation Ensure the bid goes out fully-developed to minimize change orders Insert and enforce contract penalties for failure to perform, including schedule-adherence by contractor Type Procedure Policy/ Procedure Develop contingency plans for contractor Procedure Safety Minimize Community Impacts Ensure radar scan requirement is a component in future construction contracts Utility relocations should be included as part of the preconstruction process Identify schedule, including restructuring schedules, based on community impacts Include community impact as a major goal in construction contracts Perform future work in sections of the street in shorter increments Outline acceptable work plan in contract Procedure Procedure Policy Policy Procedure Procedure 22

337 Category Contractor Qualification Contractor Expectations Change Orders Contract and Policy Compliance 23 Recommendations Recommendation Ensure bid scope requires contractor to have adequate experience for project Ensure the right VTA/Vendor Project Manager is assigned for the contract Insert qualifications into contract for key personnel Verify contractor s experience and qualification after receipt of bid Provide more specific contract requirements and guidelines Set up additional processes in bid documents and contracts to ensure priority expectations are met and impacts are minimized using interim milestones and liquidated damages Nonperformance can be considered in evaluating future contractor bids Include performance incentives in contract Ensure consensus on all design issues are established prior to bid process Report to the Policy Advisory Board Properly schedule pre-construction activities Evaluate its right to recover costs under surety bond for contractor nonperformance Start weekly progress reports before construction Ensure consistent review of proper coverage limits Type 7.5.a Procedure Procedure Procedure Procedure Procedure Procedure Policy Policy Policy Procedure Procedure Policy Procedure Procedure

338 7.5.a Category Public Messaging Recommendations Recommendation Centralized communications with one point of contact for the public Provide sufficient resources with appropriate, qualified skills and public outreach experience Contract for the most appropriate community outreach staff as needed Type Policy Staffing Procedure Response to Inquiries Build Community Understanding Prior to Construction 24 Open field office 3 months before construction begins with regular visits from engineering and construction personnel Identify one person to respond to all inquiries for consistency Create a running log of inquiries, responses, and outcomes to facilitate rapid and accurate response Communicate to the public on a weekly basis (at minimum) Develop a consistent team to provide uniform messaging throughout construction Identify field office location for future projects and open 3 months in advance of construction in addition to the standard communication and notification plan Identify field office location for future projects Conduct several informal meetings in the community Staffing Procedure Policy Policy Procedure Policy Procedure Policy

339 7.5.a Recommendations Category Coordinated Process Recommendation Ensure consensus with the City and its partners are established on all issues prior to going out for bid Perform short, concentrated project framing workshop to ensure staff-level consensus and consensus with the City Ensure that the Policy Advisory Board and standing Board standing committee have consistent and reoccurring input on to the project Create working groups with other transit agencies/dot s performing BRT projects Type Policy Procedure Policy Procedure 25

340 Alum Rock Bus Rapid Transit (BRT) Project Delay Assessment VTA Management Responses/Commitments to Corrective Action 1. On-Schedule Completion Recommended Actions 1A. Ensure the bid goes out fully-developed to minimize change orders. Management Action Plan: VTA management agrees. A new process, Pre-Construction Requisition Review (Pre- Conreq), has been established to review contract documents for readiness to advertise. The review is performed by managers within the Engineering and Transportation Infrastructure Division (ETID) which requisite knowledge and experience to ensure completeness of the contract documents and that all pre-construction activities are addressed. Target Date: This ongoing process has already been implemented Responsible Party: Engineering and Transportation Infrastructure Division 1B. Insert and enforce contract penalties for failure to perform, including schedule-adherence. Management Action Plan: VTA management agrees. Contractors are no longer issued a Notice to Proceed until a baseline schedule is submitted and approved. Also, although California law generally limits the ability to impose contract penalties, new construction contracts, such as the current Alum Rock Avenue Roadway/Stations construction contract, include interim milestones with corresponding liquidated damages. Target Date: This practice, which is ongoing, has already been implemented Responsible Party: Engineering and Transportation Infrastructure Division; Office of the General Counsel 1C. Develop contingency plans for contractor non-performance. Management Action Plan: VTA management agrees. Project Management Plans (PMP) will identify critical elements of the project and provide possible contingency actions in case of contractor non-performance. For example, for some key projects a completion contract could be used to clean up and install safety improvements during downtime if a non-performing contractor is terminated. Target Date: This ongoing practice has already been implemented Responsible Party: Engineering and Transportation Infrastructure Division

341 2. Safety Recommended Actions 2A. Ensure radar scan requirement is a component in future contracts Management Action Plan: VTA management agrees. In addition to the current practice of utility research, review of as-built drawings, and explorations/borings, staff is now utilizing Ground Penetration Radar (GPR) during the design (pre-construction) phase of all applicable construction projects to identify existing utilities. For both the Alum Rock Avenue Roadway/Stations and Downtown Stations contracts, GPR was used to confirm utility locations prior to construction. Target Date: This process, which is ongoing, has already been implemented Responsible Party: Engineering and Transportation Infrastructure Division 2B. Utility relocations should be included as part of the pre-construction process Management Action Plan: VTA typically does major utility relocations before construction. For the AR/SC project, the relocations were done as part of the major project. The newly implemented Pre- Construction Requisition Review process will ensure appropriate utilities have been relocated prior to bid or that relocations are included in the contract. Utility relocations will be accomplished either by third party utility companies or a separate utility relocation contract issued prior to the main construction contract. Target Date: This practice, which is ongoing, was recently implemented Responsible Party: Engineering and Transportation Infrastructure Division Page 2 of 18

342 3. Minimize Community Impacts Recommended Actions 3A. Major goal in construction contracts should be to minimize community impacts (e.g. develop schedules that minimize community disruption). Management Action Plan: VTA management concurs. New contracts are being structured to minimize community impacts. Also, a community outreach plan will be prepared early in the project life to identify potential impacts and develop mitigation plans. Target Date: This procedure, which is ongoing, has been implemented Responsible Party: Engineering and Transportation Infrastructure Division; Community Outreach 3B. Outline acceptable work plans in contract to ensure community impact is minimized (e.g. perform work in sections of the street in shorter increments to minimize impacts to businesses). Management Action Plan: VTA management agrees. Constructability reviews will now include reviews for minimizing community impacts and will involve community outreach staff. Also, newly developed construction contracts now contain provisions to minimize community impacts. One example is the redesign of the Downtown BRT shelters to reduce the excavation required for the new shelters thus shortening the construction duration. Another example is the use of CIR (Cold in Place Recycling) asphalt paving for Alum Rock Avenue. CIR is a more environmentally friendly method of paving and can be done much quicker to reduce community impacts. Lastly, shorter, less-disruptive phasing is being implemented going forward in future construction contracts. Target Date: This ongoing process has been implemented Responsible Party: Engineering and Transportation Infrastructure Division in partnership with Community Outreach Page 3 of 18

343 4. Contractor Qualification Recommended Actions 4A. Ensure bid scope requires contractor to have adequate experience for project. Management Action Plan: VTA management agrees. To this end, staff is currently preparing for Board consideration proposed revisions to the Board-adopted prequalification process, including enhanced requirements for minimum qualifications and experience for the contractor. Target Date: End of 2016 Responsible Party: Procurement, Contracts and Materials; Office of the General Counsel 4B. Ensure the right vendor project manager is assigned for the contract. Management Action Plan: VTA management concurs. Newly revised technical specifications include provisions for minimum qualifications and experience for the contractor s project manager. Target Date: Already implemented Responsible Party: Engineering and Transportation Infrastructure Division 4C. Insert required qualifications into contract for key personnel. Management Action Plan: VTA management agrees. Newly revised technical specifications include provisions for minimum qualifications and experience for the contractor s key personnel including the project manager, quality assurance manager, community outreach representative and safety manager. Target Date: This ongoing requirement has already been implemented Responsible Party: Engineering and Transportation Infrastructure Division Page 4 of 18

344 4D. Verify contractor s experience and qualifications after receipt of bid. Management Action Plan: VTA management agrees. Contractor s submitted qualifications for key personnel are now reviewed by qualified VTA staff prior to contractor s personnel being allowed to perform any work on the contract. Target Date: This ongoing practice was recently implemented Responsible Party: Engineering and Transportation Infrastructure Division Page 5 of 18

345 5. Contractor Expectations Recommended Actions 5A. Provide more specific contract requirements and guidelines Management Action Plan: VTA management agrees. In addition to our current use of standard contract language for consistent and specific requirements, training is being implemented for project managers to prepare contract documents with more clear and specific contract language. A recent training event was held for project managers (June 28, 2016) with VTA legal counsel providing information on the preparation and execution of construction contracts. Also, the newly implemented Pre-Construction Requisition Review process includes a review by managers with appropriate design and construction experience to confirm that contract documents are specific, clear, biddable and buildable. Target Date: This ongoing activities were recently implemented. Responsible Party: Engineering and Transportation Infrastructure Division; Office of the General Counsel 5B. Set up additional processes in bid documents and contracts to ensure that priority expectations are met and impacts are minimized, utilizing interim milestones and liquidated damages. Management Action Plan: VTA management concurs. Contract language was recently revised to tighten specifications related to minimizing and mitigating impacts to the community, businesses, and others. Additionally, new construction contracts, such as the current Alum Rock Avenue Construction, include several interim milestones and associated liquidated damages. Target Date: These ongoing requirements were recently implemented Responsible Party: Engineering and Transportation Infrastructure Division; Office of the General Counsel 5C. Include performance incentives in contract document Management Action Plan: VTA management concurs. Staff will continue to evaluate performance incentives on a project-by-project basis and implement as appropriate. Target Date: Ongoing Responsible Party: Engineering and Transportation Infrastructure Division Page 6 of 18

346 5D. Nonperformance can be considered in evaluating future contractor bids Management Action Plan: VTA management agrees. To this end, staff is currently preparing for Board consideration proposed revisions to the Board-adopted prequalification process, including allowing consideration of contractor prior non-performance. Target Date: End of 2016 Responsible Party: Procurement, Contracts and Materials; Office of the General Counsel Page 7 of 18

347 6. Scope Definition Recommended Actions 6A. Ensure consensus on all design issues are established prior to bid process. Management Action Plan: VTA management agrees. The new Pre-Construction Requisition Review process includes reviews by Engineering and Transportation Infrastructure Division managers to ensure all open issues with stakeholders have been addressed prior to advertising the contract. Target Date: This ongoing process was recently implemented Responsible Party: Engineering and Transportation Infrastructure Division 6B. Provide status reports to an active Policy Advisory Board (PAB). Management Action Plan: VTA management agrees. Staff will schedule recurring PAB meetings from initial project stages through final design and project status reports will be presented at each meeting. During construction, regular updates will be provides to PAB members, the affected jurisdictions and other stakeholder groups. Target Date: This ongoing practice has already be incorporated. Responsible Party: Engineering and Transportation Infrastructure and Planning & Project Development Divisions. 6C. Report regularly to a standing committee of the VTA Board. Management Action Plan: VTA management agrees. Semiannual reports, action items (such as contract award, agreements, etc.) and major decisions will be taken to the appropriate standing committee. Target Date: This ongoing practice has already been implemented Responsible Party: Engineering and Transportation Infrastructure and the Planning & Project Development Divisions Page 8 of 18

348 7. Contract and Policy Compliance Recommended Actions 7A. Ensure that all pre-construction activities have been scheduled properly such as right-ofway acquisition, demolition, utility relocation, and permits prior to start of construction as required by the VTA policies and procedures. Management Action Plan: VTA management concurs. The new Pre-Construction Requisition process includes reviews by qualified managers to ensure all pre-construction activities have been addressed. This includes property acquisition, utility relocations and permits. Target Date: This new but ongoing process has already been implemented Responsible Party: Engineering and Transportation Infrastructure Division 7B. VTA should continue to consider its right to recover costs under the surety bond for contractor s non-performance. Management Action Plan: VTA management agrees. VTA has and will continue to evaluate all options available in accordance with California law and the particular facts and circumstances of each matter. Target Date: This existing practice will continue forward. Responsible Party: Engineering and Transportation Infrastructure Division in combination with the Office of the General Counsel 7C. Start weekly progress reporting prior to the first week of construction. Management Action Plan: VTA management agrees. Weekly meetings between VTA s construction staff and the contractor s key personnel will be held throughout the contract duration, starting well prior to any field activities. This will be a standard requirement in all future construction contracts. Target Date: This continuing practice has already been implemented Responsible Party: Engineering and Transportation Infrastructure Division Page 9 of 18

349 7D. Ensure consistent review of proper coverage and limits per contract. Management Action Plan: VTA management agrees. Legal counsel and VTA s Risk Manager are part of the enhanced review process for readiness of contract documents prior to advertising. The Risk Manager s review will include a review of the coverage and limits. Target Date: This strengthened ongoing process has already been implemented Responsible Party: Engineering and Transportation Infrastructure Division; Enterprise Risk Management 7E. Develop early warning system to ensure contract compliance Management Action Plan: VTA management concurs. A system is being set up to include a list of early warning signs that will include but not be limited to qualifications of key contractor personnel, early submittals including site specific work plans, and a baseline schedule. Failure of the contractor to perform on any of the key early warning signs will a notification warning to be issued to the contractor and for staff to implement appropriate actions. As an example, the contractor s ability to submit a realistic, achievable and approvable baseline schedule is a critical early warning sign. A Notice to Proceed will not be issued without a VTA-approved schedule. Target Date: September 30, 2016 Responsible Party: Engineering and Transportation Infrastructure Division Page 10 of 18

350 8. Public Messaging Recommended Actions 8A. Centralized communications with one point of contact for the public Management Action Plan: Management agrees. Unified messaging is critical. Initially the contractor was required to provide a Community Relations Officer who worked under the direction of a project designated member of the VTA Outreach team. Currently, two VTA outreach specialists are supporting the project; one is assigned for the Downtown segment of the project and an additional outreach specialist has been assigned for the Alum Rock (eastern) section, assuring adequate, timely, appropriate and unified messaging, as well as enhanced community engagement. Target Date: This process, which is ongoing, has already implemented Responsible Party: Community Outreach 8B. Provide sufficient resources with appropriate, qualified skills and public outreach experience Management Action Plan: Management agrees. Community relations is an essential element of successful project delivery. To ensure adequate resources to support current and future capital projects to ensure unified messaging, VTA has augmented its outreach team with experienced, culturally diverse outreach specialists. Target Date: Already implemented Responsible Party: Community Outreach 8C. Contract for the most appropriate community outreach staff as needed Management Action Plan: Management agrees. VTA now has contracts in place with three firms who are providing and have ongoing access to experienced, culturally diverse, multi-lingual outreach specialists. Target Date: This ongoing process has already implemented Responsible Party: Community Outreach Page 11 of 18

351 8D. Open field office 3 months before construction begins with regular visits from engineering and construction personnel Management Action Plan: Management agrees. For future projects, the Community Outreach team will work with Engineering and Transportation Infrastructure Division staff to establish and staff a field office for larger longer-term projects impacting businesses and residents. The field office will be established at least three months prior to commencement of any project related construction. Target Date: Process, which is ongoing, has been implemented Responsible Party: Engineering and Transportation Infrastructure Division and Community Outreach Page 12 of 18

352 9. Response to Inquiries Recommended Actions 9A. Create a running log of inquiries, responses, and outcomes to facilitate rapid and accurate response Management Action Plan: Management agrees. While all project contacts, communications and interactions were previously tracked, VTA recently augmented its Salesforce Constituent Program Management system, which had been created to support the BART Silicon Valley project, to support all capital projects. This program enables all communications and contacts related to projects to be addressed and documented in on place. Target Date: This tool, which will be used on an ongoing basis, has already been implemented Responsible Party: Community Outreach 9B. Identify one primary person with designated backup to ensure consistent messaging Management Action Plan: Management agrees. Each active capital project now has a community outreach specialist as well as a back-up assigned to it. Larger projects have multiple specialists to support specific geographical areas of the project and develop relevant outreach and engagement plans following the Capital Projects Outreach and Communications Policies and Procedures. Target Date: This approach, has already been implemented Responsible Party: Community Outreach 9C. Communicate to the public on a weekly basis (at minimum) Management Action Plan: Management agrees. Procedures and Outreach plans have been established or enhanced to now provide bi-weekly project update newsletters and proactive timely construction updates as frequently warranted by construction activities. Due to time required for broad distribution of materials that require translation, more frequent communications, sometimes as much as 2-3 times per week, are customized for the specific stakeholders impacted. Written materials are delivered door-to-door in the community and available at the field office as well as on VTA s website. Target Date: This ongoing practice has already implemented Page 13 of 18

353 Responsible Party: Community Outreach 9D. Need to have a more targeted outreach strategy, where community organizations are lacking Management Action Plan: Management agrees. VTA s assigned outreach specialists are more strictly adhering to the Project Communications and Outreach Policies and procedures which guide stakeholder identification and classification, and communications methods and timing. Target Date: This ongoing strategy has already been implemented Responsible Party: Community Outreach Page 14 of 18

354 10. Build Community Understanding Prior to Construction Recommended Actions 10A. Open field office for future projects at least 3 months in advance of construction (in addition to the standard communication and notification plan) Management Action Plan: Management agrees. Going forward, the Community Outreach team will work with Engineering and Transportation Infrastructure Division staff to establish and staff a field office for larger longer-term projects impacting businesses and/or residents. The field office will be established at least three months prior to commencement of any projectrelated construction. Target Date: This ongoing practice has been implemented Responsible Party: Community Outreach 10B. Develop a consistent team to provide uniform messaging throughout construction Management Action Plan: Management agrees. VTA has augmented its Community Outreach team to enable outreach specialists to more fully engage in the communities where projects take place. Target Date: Already implemented Responsible Party: Community Outreach 10C. Conduct several informal meetings in the community Management Action Plan: Management concurs. Outreach specialists are working proactively with planning and construction teams to identify key milestones and opportunities for public engagement. Public meetings are an important component of the project outreach plans. In addition to public meetings, all larger scope projects that include a field office will offer identified, recurring schedules where staff are available to meet with the public. Target Date: This ongoing process has already been implemented Responsible Party: Community Outreach Page 15 of 18

355 10D. Consider developing a Business Advisory Committee to solicit input Management Action Plan: Management concurs. Community Outreach is more fully engaging in the project planning and contract development processes to ensure the interests of businesses are considered in delivery approaches. Establishing a Business Advisory Committee may be one method used to solicit valuable input from the business community. VTA is also researching other agencies for best practices in mitigating business impacts. Target Date: This ongoing strategy has already been implemented. Responsible Party: Government and Public Relations, and Community Outreach Page 16 of 18

356 11. Coordinated Process Recommended Actions 11A. Perform short, concentrated project framing workshop to ensure staff-level consensus and consensus with the City. Management Action Plan: VTA management agrees. Staff will conduct focused meetings with project stakeholders to ensure consensus and achieve written accord. This will be done on a project-byproject basis based on the specific parameters and challenges of each project. Target Date: This ongoing procedure was recently implemented Responsible Party: Engineering and Transportation Infrastructure Division 11B. Ensure that consensus with the City and its partners are established on all issues prior to going out for bid. Management Action Plan: VTA management agrees. The recently implemented Pre-Construction Requisition Review process will ensure that all open issues with stakeholders are addressed prior to approving the contract for advertising. Target Date: This ongoing process has been implemented Responsible Party: Engineering and Transportation Infrastructure Division 11C. Ensure that the Policy Advisory Board and standing Board subcommittee has consistent and recurring input on the project. Management Action Plan: VTA management agrees. From project inception through final design staff will provide both bodies with regular recurring status updates and opportunities to provide input. Once construction begins, major implementation decisions will be taken to the appropriate Board standing committee and periodic updates will be provided to PAB members, the affected jurisdictions and other stakeholder groups. Target Date: This ongoing process has been implemented Responsible Party: Engineering and Transportation Infrastructure and Planning & Project Development Divisions Page 17 of 18

357 11D. Create working groups with other transit agencies/dot s performing BRT projects Management Action Plan: Staff will contact other agencies/cities/dot s to determine their interest in building a network for the exchange of information and sharing Best Management Practices on BRT projects. Target Date: End of 2016 Responsible Party: Engineering and Transportation Infrastructure Division Page 18 of 18

358 8.1.B Date: July 21, 2016 Current Meeting: August 4, 2016 Board Meeting: August 4, 2016 BOARD MEMORANDUM TO: THROUGH: FROM: SUBJECT: Santa Clara Valley Transportation Authority Board of Directors General Manager, Nuria I. Fernandez Director of Engr. & Trans. Infrastructure Dev., Carolyn M. Gonot Silicon Valley Rapid Transit (SVRT) Program Update Silicon Valley Berryessa Extension Project FOR INFORMATION ONLY Significant activities and progress on VTA s BART Silicon Valley Berryessa Extension Project continued during July Key activities that occurred throughout the 10-mile extension include the following: Construction Update Fremont Guideway. Installation of train control and communications equipment, track work, electric contact rail, drainage system, and guideway fencing continued between the tie-in to BART s Warm Springs Extension and northern Milpitas. Testing of Automatic Train Control equipment is also on-going at traction power substations. Dixon Landing Trench and Milpitas Guideway. Within the Dixon Landing trench, track installation work has been completed, and work continued on features such as area lighting and the fire suppression system. Along the Milpitas guideway, installation of the drainage system and duct bank/cable trough placement continued. Site fencing installation along the guideway and at wayside facilities is ongoing and trackwork activities continued between Montague Expressway and Calaveras Boulevard. Installation of the Railroad Intrusion Detection System and 34.5kV cable for the Traction Power system continued. Montague Trench. Installation of new PG&E utilities and relocation of existing utility lines along Capitol Avenue continued. Capitol Avenue roadway reconstruction continued with the roadway temporarily reconfigured to one northbound lane and three southbound 3331 North First Street San Jose, CA Administration Customer Service

359 8.1.B lanes. Trench finishing work continued, along with the installation of the fire suppression system and the initiation of trackwork. Milpitas Station. Work continued in all areas of the station, including the roofing system, fire suppression system, water lines, exterior wall installation, interior room construction, pedestrian circulation elements, ancillary station buildings, and the pedestrian overcrossing bridge. Milpitas Parking Garage. Major concrete pouring is complete. Crews continued construction of interior operations rooms, elevator exterior walls, and mechanical, electrical and plumbing elements and interior finishes. Installation of the façade is set to begin in late July and factory acceptance testing for the parking revenue collection and parking guidance system has been completed. Sierra-Lundy Intersection. The intersection of Sierra Road and Lundy Avenue is now fully re-opened. Inspection of the intersection s traffic signaling has taken place and some roadway restoration work continues, including paving, striping, and curb & gutter work. San Jose Guideway. Sound wall construction, drainage system installation, site fencing installation, and duct bank/cable trough placement continued along at-grade segments and the Berryessa Aerial Structure. Along the Berryessa Aerial Structure, work on the double crossovers continued, and placement of the contact rail continued for areas with direct fixation trackwork. Systems facilities equipment testing is in progress. Berryessa Station. Construction continued on station circulation elements, interior rooms, fire suppression system, and water and drainage lines. Construction of the on-site BART Police facility and the station s ancillary buildings continued. Key exterior elements of these buildings have been completed, with crews working on interior features. Grading work for the surface parking lot and Upper Penitencia Creek trail is underway and off-site intersection and street improvements continued at Lenfest and Mabury roads and King Road and Salamoni Court. Berryessa Parking Structure. Construction continued on interior operations rooms, elevator exterior walls, and mechanical, electrical and plumbing elements and interior finishes. Installation of photovoltaic panels and the structure s façade is set to begin in August. Factory acceptance testing for the parking revenue collection and parking guidance system has been completed. Communications and Outreach In the City of Milpitas, staff reached out to stakeholders at the intersection of Montague Expressway and South Milpitas Boulevard regarding pile driving for the upcoming flood protection improvements. Staff also conducted outreach to local residents and businesses informing them of tree trimming along the project alignment, and supported the City of Milpitas regarding the planned pedestrian bridge across Montague Expressway. Page 2 of 3

360 8.1.B In the City of San Jose, staff performed outreach to residents regarding the reopening of the Sierra Road and Lundy Avenue intersection. Outreach was also conducted for residents neighboring the Berryessa Station campus regarding various off-site work being performed in the area. SVBX Budget Estimate Forecast at Completion SVBX New Starts Project $2,330.0 $2,330.0 $1,447.0 Concurrent Non-Project Activities $ 91.3 $ 91.3 $ 54.9 Incurred to Date (Through May 2016)* SVBX Total $2,421.3 $2,421.3 $1,501.9 *Work in Progress $Millions - Year of Expenditure Phase II Activities A Request for Proposals (RFP) was issued for a single-bore tunnel technical study focusing on areas such as station configurations, ventilation and emergency egress. Proposals were due on June 30, 2016 with award of contract anticipated at the September Board of Directors meeting. A 2 nd Administrative Draft SEIS/SEIR document was submitted to FTA on June 28, This document reflected revisions to the document based on comments provided by the Federal Transit Administration and BART. New options for the station location at Diridon and a singlebore tunnel were also included in the document. Public circulation of the Draft SEIS/SEIR is anticipated for December. Phase II Community Working Group meetings were held June 14-16, Meeting topics included a presentation on the single-bore construction methodology, updates on VTA s Joint Development Program and the City of San Jose s Developer s Forum conducted for the Alum Rock Station area, and continuation of a discussion on community outreach best practices from transit projects throughout the nation. The next series of Community Working Group meetings are scheduled for September 13-15, Prepared By: Kevin Kurimoto Memo No Page 3 of 3

361 Agenda Item 8.1.B SVRT Program Update Board of Directors Meeting August 4,

362 SVBX Construction Progress June 2016 June 2015 Completed track with third rail installed near Warren Avenue in Fremont. 2

363 SVBX Construction Progress 04/2016 July 2016 Milpitas Station campus construction progress. 3

364 SVBX Construction Progress 04/2016 July 2016 Berryessa Station campus construction progress. 4

365 SVBX Construction Progress July /2016 Factory Acceptance Testing of parking guidance and fare collection equipment. 5

366 SVBX Integrated Summary Schedule 6

367 SVBX Cost Summary SVBX Project Element (FTA Standard Cost Category) SVBX New Starts Estimate Forecast at Completion Incurred to date 10 Guideway and Track Elements Stations, Stops, Terminals & Intermodal Support Facilities: Yards, Shops, Admin. Buildings Sitework and Special Conditions Systems ROW, Land, and Existing Improvements Vehicles Professional Services Sub-Total 2, , , Unallocated Contingency Finance Charges FTA New Starts Total $2,330.0 $2,330.0 $1, Concurrent Non-project Activities SVBX Project Total $2,421.3 $2,421.3 $1, May June close out not available at time of report completion. $Millions Year of Expenditure

368 BART Silicon Valley Phase II Single-bore Technical Study Request for Proposals issued, bids received and interviews underway. Areas of focus will include: Station concepts Ventilation Emergency egress Environmental Activities 2 nd Administrative Draft SEIS/SEIR document Submitted to FTA on June 28, 2016 Revisions based on comments provided by FTA and BART Includes new options for Diridon Station location and a single-bore tunnel Public circulation of the document anticipated for December 2016 Community Working Groups Upcoming Community Working Group meetings September 13-15,

369 End

370 8.4.a TRANSIT PLANNING & OPERATIONS COMMITTEE Thursday, June 2, 2016 CALL TO ORDER MINUTES The Regular Meeting of the Transit Planning and Operations (TP&O) Committee was called to order at 3:02 p.m. by Chairperson Khamis in Conference Room 157, County Government Center, 70 West Hedding Street, San Jose, California. 1. ROLL CALL Attendee Name Title Status Johnny Khamis Chairperson Present Sam Liccardo Member Absent Ken Yeager Vice Chairperson Present Jeannie Bruins Member Present Dave Cortese Alternate Member Absent John McAlister Alternate Member Absent Raul Peralez Alternate Member Absent *Alternates do not serve unless participating as a Member. A quorum was not present and a Committee of the Whole was declared. 2. PUBLIC PRESENTATIONS Roland Lebrun, Interested Citizen, commented on the traffic signal preemption issues at northbound First Street and Rosemary Street, noting the impacts to the Light Rail. Mr. Lebrun requested that the city of San Jose fix the problem. Member Bruins took her seat at 3:04 p.m. and a quorum was established. 3. ORDERS OF THE DAY Chairperson Khamis noted staff s request to remove the following items from the Regular Agenda and placed on the Consent Agenda: Item #11.a, Receive the FY2016 Third Quarter Transit Operations Performance Report; Item #11.b, Receive a report on the April 2016 Monthly Ridership; Item #11.c, Receive the Marketing Report; and Item #12, Receive an update on the Rebranding of VTA s Paratransit Services Program. M/S/C (Yeager/Bruins) to accept the Orders of the Day. NOTE: M/S/C MEANS MOTION SECONDED AND CARRIED AND, UNLESS OTHERWISE INDICATED, THE MOTION PASSED UNANIMOUSLY.

371 8.4.a RESULT: MOVER: SECONDER: AYES: NOES: ABSENT: APPROVED [UNANIMOUS] Yeager, Vice Chairperson Bruins, Member Khamis, Yeager, Bruins None Liccardo CONSENT AGENDA 4. Regular Meeting Minutes of March 17, 2016 M/S/C (Yeager/Bruins) to approve the Regular Meeting Minutes of March 17, July 4, 2016 Transit Service Changes M/S/C (Yeager/Bruins) to approve submitting a recommendation to the Board of Directors to receive a report on the July 4, 2016 Transit Service Changes. 6. Computer Aided Dispatch/Automatic Vehicle Location (CAD/AVL) Procurement M/S/C (Yeager/Bruins) to receive an update on the Computer Aided Dispatch/Automatic Vehicle Location (CAD/AVL) Procurement. 7. System Safety and Security Update M/S/C (Yeager/Bruins) to approve submitting a recommendation to the Board of Directors to receive an update on System Safety and Security. 11. Transit Operations and Marketing Reports: 11.a. Receive the FY2016 Third Quarter Transit Operations Performance Report. 11.b. Receive a report on the April 2016 Monthly Ridership and Fare Revenue Performance. (Verbal Report) 11.c. Receive the Marketing Report. (Verbal Report) M/S/C (Yeager/Bruins) to receive an update on Transit Operations and Marketing Reports. 12. Rebranding Paratransit Services M/S/C (Yeager/Bruins) to approve submitting a recommendation to the Board of Directors to receive an update on the rebranding of VTA s Paratransit Services Program. Transit Planning and Operations Committee Page 2 of 6 June 2, 2016

372 8.4.a RESULT: MOVER: SECONDER: AYES: NOES: ABSENT: APPROVED [UNANIMOUS] Consent Agenda Items 4, 5, 6, 7, 11 and 12 Yeager, Vice Chairperson Bruins, Member Khamis, Yeager, Bruins None Liccardo REGULAR AGENDA 8. Potential ½-cent 30-year Sales Tax Measure Scott Haywood, Transportation Planning Manager, provided an overview of the staff report, highlighting: 1) BART Phase II - $1.5 billion; 2) Bicycle/Pedestrian Program - $250 million; 3) Caltrain Corridor Capacity Improvements - $314 million; 4) Caltrain Grade Separations - $700 million; 5) County Expressways - $750 million; 6) Highway Interchanges - $750 million; 7) Local Streets and Roads - $1.2 billion; 8) SR 85 Corridor - $350 million; and 9) Transit Operations - $500 million. Members of the Committee made the following comments: 1) make sure that Safe Routes to School has a fair chance in competing for funding for bicycles; criteria needs to be looked at carefully; 2) more money should be allocated for street pavements; 3) a bus only lane on SR 85 will be a waste of money if the lane cannot be used during non-peak hours; use it as a toll lane instead and have it open to everyone; and 4) encourage solo drivers to change their mode of transport to bus. Chairperson Khamis indicated he will advocate for the use of SR 85 extra lane as an open lane to all drivers. Vice Chairperson Yeager commented on staff s amazing achievement to be able to reach consensus on what should be on the measure. M/S/C (Bruins/Yeager) to approve submitting a recommendation to the Board of Directors to 1) Adopt the framework and funding amounts for a ½-cent 30-year sales tax measure; and 2) Adopt a resolution calling for a special election, to be consolidated with the statewide general election to be held on November 8, 2016, for the purpose of submitting to the voters of Santa Clara County a measure seeking authorization for VTA to enact a 30-year ½-cent retail transactions and use tax for transportation purposes. RESULT: MOVER: SECONDER: AYES: NOES: ABSENT: APPROVED [UNANIMOUS] Bruins, Member Yeager, Vice Chairperson Khamis, Yeager, Bruins None Liccardo Transit Planning and Operations Committee Page 3 of 6 June 2, 2016

373 8.4.a Year ½-Cent Retail Transactions and Use Tax Ordinance (Ordinance No ) Introduction Mr. Haywood provided a brief overview of the staff report. M/S/C (Bruins/Yeager) to approve submitting a recommendation to the Board of Directors to (a) Introduce proposed Ordinance No , An Ordinance of the Santa Clara Valley Transportation Authority Enacting a Transactions and Use Tax, Subject to Adoption by the Electorate, Which Tax to Be Administered by the State Board of Equalization, in the form attached hereto as Attachment A; (b) Consider the proposed Ordinance No ; and (c) Direct that proposed Ordinance No be placed on the agenda for the next regularly scheduled Board meeting for adoption. RESULT: MOVER: SECONDER: AYES: NOES: ABSENT: APPROVED [UNANIMOUS] Bruins, Member Yeager, Vice Chairperson Khamis, Yeager, Bruins None Liccardo 10. Measure A Project Funding Recommendation John Ristow, Director of Planning and Program Development, provided an overview of the staff report, highlighting: 1) BART Phase II Project; 2) Light Rail Extension to Eastridge; and 3) Vasona Light Rail Extension/Double Track; and 4) Airport People Mover. He stated that the BART extension project is the Board of Directors first priority and the Light Rail Extension to Eastridge is the second priority. Members of the Committee made the following comments: 1) San Jose Airport should put in their share of the money for the Airport People Mover; and 2) revalidate where people are going for the Vasona Light Rail Extension/Double Track Project alignment. Chairperson Khamis thanked staff for their efforts in trying to fulfill the promise of Measure A. M/S/C (Yeager/Bruins) to approve submitting a recommendation to the Board of Directors to establish funding commitments for the projected available 2000 Measure A revenue and augment the 2000 Measure A Transit Improvement Program Fund Capital Budget by $79,000,000 for the Capitol Expressway Light Rail to Eastridge, Vasona Light Rail Extension/Double Track, and Airport People Mover Connection to Mineta SJ Airport projects. RESULT: MOVER: SECONDER: AYES: NOES: ABSENT: APPROVED [UNANIMOUS] Yeager, Vice Chairperson Bruins, Member Khamis, Yeager, Bruins None Liccardo Transit Planning and Operations Committee Page 4 of 6 June 2, 2016

374 8.4.a 11. (Removed from the Regular Agenda and placed on the Consent Agenda) Receive the following reports: 11.a. Receive the FY2016 Third Quarter Transit Operations Performance Report. 11.b. Receive a report on the April 2016 Monthly Ridership and Fare Revenue Performance. 11.c. Receive the Marketing Report. 12. (Removed from the Regular Agenda and placed on the Consent Agenda) Receive an update on the rebranding of VTA's Paratransit Services Program. OTHER ITEMS 13. Stadium Events Inez Evans, Chief Operating Officer, reported that the COPA America International Soccer Match at Levi s Stadium on June 3, 2016, is expecting about 60,000 to 70,000 people. 14. Items of Concern and Referral to Administration There were no Items of Concern and Referral to Administration. 15. Committee Work Plan On order of Chairperson Khamis and there being no objection, the Committee reviewed the Committee Work Plan. 16. Committee Staff Report Ms. Evans reported the following: 1) the light rail roadeo held on April 30, 2016, at the Guadalupe Division was well attended; 2) one employee will be participating in the International Rail Rodeo in Phoenix, NC, in June 2016; and 3) the Chaboya Division fitness center has been completed and is very well utilized. Vice Chairperson Yeager commented that the fitness facility at North First Street campus certainly needs an update. Nuria I. Fernandez, General Manager, stated that funds from VTA s cafeteria vending machines are being used for wellness improvements. Transit Planning and Operations Committee Page 5 of 6 June 2, 2016

375 8.4.a 17. Determine Consent Agenda for the June 2, 2016 Board of Directors Meeting CONSENT: Agenda Item #5. Receive a report on the July 4, 2016 Transit Service Changes. Agenda Item #7. Receive System Safety and Security Update. Agenda Item #12. Receive an update on the rebranding of VTA's Paratransit Services Program. REGULAR: Agenda Item 8. 1) Adopt the framework and funding amounts for a ½-cent 30-year sales tax measure; and 2) Adopt a resolution calling for a special election, to be consolidated with the statewide general election to be held on November 8, 2016, for the purpose of submitting to the voters of Santa Clara County a measure seeking authorization for VTA to enact a 30-year ½-cent retail transactions and use tax for transportation purposes. Agenda Item 9. (a) Introduce proposed Ordinance No , An Ordinance of the Santa Clara Valley Transportation Authority Enacting a Transactions and Use Tax, Subject to Adoption by the Electorate, Which Tax to Be Administered by the State Board of Equalization, in the form attached hereto as Attachment A; (b) Consider the proposed Ordinance No ; and (c) Direct that proposed Ordinance No be placed on the agenda for the next regularly scheduled Board meeting for adoption. Agenda Item 10. Establish funding commitments for the projected available 2000 Measure A revenue and augment the 2000 Measure A Transit Improvement Program Fund Capital Budget by $79,000,000 for the Capitol Expressway Light Rail to Eastridge, Vasona Light Rail Extension/Double Track, and Airport People Mover Connection to Mineta SJ Airport projects. 18. Chairperson's Report There was no Chairperson s Report. 19. Announcements There were no Announcements. 20. Adjournment On order of Chairperson Khamis and there being no objection, the meeting was adjourned at 3:47 p.m. Respectfully submitted, Mely Taganas, Executive Secretary VTA Office of the Board Secretary Transit Planning and Operations Committee Page 6 of 6 June 2, 2016

376 8.4.A GOVERNANCE AND AUDIT COMMITTEE Thursday, June 2, 2016 MINUTES CALL TO ORDER The Regular Meeting of the Governance and Audit Committee ( Committee ) was called to order at 4:05 p.m. by Vice Chairperson Bruins in Conference Room 157, County Government Center, 70 West Hedding Street, San José, California. 1. ROLL CALL Attendee Name Title Status Jason Baker Member Present Jeannie Bruins Vice Chairperson Present Cindy Chavez Chairperson Present Rose Herrera Member Present Johnny Khamis Member Present A quorum was present. 2. PUBLIC PRESENTATIONS There were no Public Presentations. 3. ORDERS OF THE DAY Nuria I. Fernandez, General Manager and CEO, requested Agenda Item #6, Amend the bylaws for the Committee for Transit Accessibility to modify the membership structure as well as implement other minor administrative revisions, be removed from the Regular Agenda and placed on the Consent Agenda. M/S/C (Herrera/Khamis) to accept the Orders of the Day. RESULT: MOVER: SECONDER: AYES: NOES: ABSENT: APPROVED Agenda Item #3 Rose Herrera, Member Johnny Khamis, Member Bruins, Herrera, Khamis None Baker, Chavez NOTE: M/S/C MEANS MOTION SECONDED AND CARRIED AND, UNLESS OTHERWISE INDICATED, THE MOTION PASSED UNANIMOUSLY North First Street San Jose, CA Administration Customer Service a

377 8.4.a CONSENT AGENDA 4. Regular Meeting Minutes of May 5, 2016 M/S/C (Khamis/Herrera) to approve the Regular Meeting Minutes of May 5, Amend the Committee for Transit Accessibility Bylaws M/S/C (Khamis/Herrera) to amend the bylaws for the Committee for Transit Accessibility to modify the membership structure as well as implement other minor administrative revisions. RESULT: MOVER: SECONDER: AYES: NOES: ABSENT: APPROVED [Unanimous] Consent Agenda Items 4, 6 Johnny Khamis, Member Rose Herrera, Member Bruins, Herrera, Khamis None Baker, Chavez REGULAR AGENDA 5. Seven-Party Regional Funding Supplement to the 2012 High Speed Rail Early Investment Strategy for the Peninsula Corridor Electrification Project (PCEP) Jim Lawson, Government Affairs Director & Executive Policy Advisor, provided an overview of the staff report. Member Baker arrived at the meeting at 4:11 p.m. and took his seat. Member Herrera expressed concern with the significant reduction in available Cap and Trade funding, and queried about alternate funding sources. Mr. Lawson noted staff would report back to the Committee in September to provide an update. Chairperson Chavez arrived at the meeting at 4:14 p.m. and took her seat. Vice Chairperson Bruins relinquished her seat to Chairperson Chavez who presided over the remainder of the meeting. Public Comment Roland Lebrun, Interested Citizen, expressed concern with the Peninsula Corridor Electrification Program 7-Party MOU, noting the following: 1) electrification costs are excessive; 2) the project conflicts with proposed High Speed Rail (HSR) and Bay Area Rapid Transit (BART) projects, and; 3) potential budget and funding issues. Chairperson Chavez requested the Board of Directors (Board) conduct an annual review of all VTA regional partnership agreements with agencies such as Caltrain, Ace, Highway 17, Monterey Highway, and Capitol Corridor. Members of the Committee discussed cost estimates and the importance of Caltrain electrification. Governance and Audit Committee Minutes Page 2 of 6 June 2, 2016

378 8.4.a M/S/C (Herrera/Baker) to authorize the General Manager to execute the Seven-Party Regional Funding Supplement to the 2012 Nine-Party Memorandum of Understanding (MOU) for the Peninsula Corridor Electrification Project (PCEP). This MOU supplement provides an additional financial commitment of $20 million to address a portion of the PCEP funding gap. RESULT: MOVER: SECONDER: AYES: NOES: ABSENT: APPROVED - Agenda Item #5 Rose Herrera, Member Jason Baker, Member Baker, Bruins, Chavez, Herrera, Khamis None None 6. (Removed from the Regular Agenda and placed on the Consent Agenda.) Amend the bylaws for the Committee for Transit Accessibility to modify the membership structure as well as implement other minor administrative revisions. 7. Review Status of Internal Audit Work Plan Corey Saunders, Deputy Auditor General, provided a brief overview of completed, underway and proposed projects. On order of Chairperson Chavez and there being no objection, the Committee received an update from Auditor General Office staff on the status of projects contained in the current Internal Audit Work Plan. 8. Audit Dashboard Follow-up: Audit Recommendations Issued by the Office of the Auditor General Raj Srinath, Chief Financial Officer, provided a brief overview of the staff report. Mr. Srinath introduced Grace Ragni, Fiscal Resources Manager, who reviewed the Audit Dashboard implementation methodology. Discussion ensued regarding the following: 1) tracking and prompt action; 2) Division Directors are responsible for implementation of recommendations; and 3) formal process in place for follow-up. Chairperson Chavez requested staff bring the top three or four items that have significant financial implications back to the Committee for review to insure an action plan is in place. Vice Chairperson Bruins suggested adding an additional column that notes Level of Concern. On order of Chairperson Chavez and there being no objection, the Committee received an update from Auditor General Office staff on the Audit Dashboard Follow-up: Audit Recommendations Issued by the Office of the Auditor General. Governance and Audit Committee Minutes Page 3 of 6 June 2, 2016

379 8.4.a 9. Scope of Work for Annual Financial Audit Services for Fiscal Year 2016 Mr. Srinath introduced Ahmad Gharaibeh and Leonard Danna with the accounting firm of Vivrinek Trine & Day (VTD), who provided a brief overview of the Scope of Work for Annual Financial Audit Services for Fiscal Year Chairperson Chavez suggested coordination between the auditors would be helpful. She requested VTD return with information on which areas have received a more thorough investigation. On order of Chairperson Chavez and there being no objection, the Committee received the Scope of Work for Annual Financial Audit Services for Fiscal Year OTHER ITEMS 10. VTA's Strategic Planning Process Update Scott Haywood, Transportation Planning Manager, provided a brief overview of VTA s Strategic Planning Process, highlighting the following: 1) held strategic planning meetings with employees to discuss VTA strengths, weaknesses, opportunities, threats, mission and vision; 2) strategic planning process draft completed in mid-summer; 3) September Board workshop; 4) October public meetings; 5) final draft in November; and 6) Board adoption in December, On order of Chairperson Chavez and there being no objection, the Committee received an update on VTA s Strategic Planning Process. 11. Items of Concern and Referral to Administration There were no Items of Concern and Referral to Administration. 12. Governance & Audit Committee Work Plan Ms. Fernandez reminded the Committee that the next Governance & Audit Committee meeting is scheduled for September 1, 2016, and reviewed the items to be discussed at the next committee meetings. Chairperson Chavez requested the following be added to the work plan: 1) under what terms and conditions VTA establishes Policy Advisory Boards (PAB) and what is their scope of responsibility and work, and; 2) orientation to new members about what their role on a PAB is, how long the PAB may live, and operating opportunities. Member Khamis requested staff investigate the possibility of establishing an advisory committee that will focus on congestion management. On order of Chairperson Chavez and there being no objection, the Committee reviewed the Committee Work Plan. 13. Committee Staff Report There was no Committee Staff Report. Governance and Audit Committee Minutes Page 4 of 6 June 2, 2016

380 8.4.a 14. Chairperson s Report Chairperson Chavez stated the Auditor General s report on the Alum Rock Bus Rapid Transit (BRT) Delay Assessment along with the Management s Directive Action Commitments will be presented to the full Board in August, Determine Items for the Consent Agenda for Future Board of Directors Meetings CONSENT: Agenda Item #5. Authorize the General Manager to execute the Seven-Party Regional Funding Supplement to the 2012 Nine-Party Memorandum of Understanding (MOU) for the Peninsula Corridor Electrification Project (PCEP). This MOU supplement provides an additional financial commitment of $20 million to address a portion of the PCEP funding gap. Agenda Item #6. Amend the bylaws for the Committee for Transit Accessibility to modify the membership structure as well as implement other minor administrative revisions Agenda Item #7. Receive an update from Auditor General Office staff on the status of projects contained in the current Internal Audit Work Plan. Agenda Item #8. Receive an update from Auditor General Office staff on the Audit Dashboard Follow-up: Audit Recommendations Issued by the Office of the Auditor General. Agenda Item #9. Receive the Scope of Work for Annual Financial Audit Services for Fiscal Year REGULAR: None. 16. ANNOUNCEMENTS There were no Announcements. 17. RECESS TO CLOSED SESSION at 4:49 p.m. Conference with Legal Counsel - Anticipated Litigation Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section Number of Cases: RECONVENE TO OPEN SESSION at 5:30 p.m. Governance and Audit Committee Minutes Page 5 of 6 June 2, 2016

381 8.4.a 19. CLOSED SESSION REPORT Conference with Legal Counsel - Anticipated Litigation Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section Number of Cases: 1 Robert Fabela, General Counsel, noted that no reportable action was taken during Closed Session. 22. ADJOURNMENT On order of Chairperson Chavez and there being no objection, the Committee was adjourned at 5:32 p.m. Respectfully submitted, Anita McGraw, Board Assistant VTA Office of the Board Secretary Governance and Audit Committee Minutes Page 6 of 6 June 2, 2016

382 8.4.b COMMITTEE FOR TRANSIT ACCESSIBILITY CALL TO ORDER Wednesday, June 8, 2016 MINUTES The Regular Meeting of the Committee for Transit Accessibility (CTA) was called to order at 1:03 p.m. by Second Vice Chairperson Vaidya in the Auditorium, Building A, Santa Clara Valley Transportation Authority (VTA), 3331 North First Street, San José, California. 1. ROLL CALL Attendee Name Title Status Kathy Bonilla Member Present Christine Fitzgerald Member Present Katie Heatley Ex-Officio Member Present Troy Hernandez Member Absent Jeffery Jokinen First Vice Chairperson Absent Lupe Medrano Member Present Laura Michels Member Present Aaron Morrow Chairperson Absent Lechi Nguyen Member Present David Robinson Member Absent Mark Romoser Member Present Dilip Shah Member Present Barbara Stahl Member Absent Chaitanya Vaidya Second Vice Chairperson Present Lori Williamson Member Absent Hope Cahan Representative/Board Chairperson Chavez CTA Ex-Officio Present A quorum was not present and a Committee of the Whole was declared. 2. Orders of the Day There were no Orders of the Day. 3. INTRODUCTION OF AUDIENCE MEMBERS David Ledwitz, Management Analyst; Jim Unites, Deputy Director, Service and Transportation Planning; Adam Burger, Transportation Planner III; Jason Kim, Transportation Planner; Lorraina Alvarez, Customer Service Supervisor; Robert Gebo, Regional Transportation Services Supervisor; Jolene Bradford, Public Communications Specialist II; and Elaine Baltao, Board Secretary North First Street San Jose, CA Administration Customer Service

383 8.4.b 4. PUBLIC PRESENTATIONS Member Nguyen expressed concern with correspondence received from Chairperson Morrow regarding paratransit rebranding and the paratransit audit. She noted his reflection of the CTA s view was incorrect, noting the Committee was not given a chance to review the report. She requested the Committee have a chance to discuss issues and express ideas before a conclusion is drawn. 5. Board of Directors Report Hope Cahan, Policy Advisor to Board Chairperson Cindy Chavez, provided a brief report from the June 2, 2016, Board of Directors meeting, indicating the Board approved placing the Sales Tax Measure on the November 8, 2016 ballot and noted strong support was shown from the community and stakeholders. CONSENT AGENDA 6. Regular Meeting Minutes of June 10, 2015 On order of Second Vice Chairperson Vaidya and there being no objection, the Committee of the Whole deferred the Regular Meeting Minutes of June 10, Regular Meeting Minutes of October 7, 2015 On order of Second Vice Chairperson Vaidya and there being no objection, the Committee of the Whole deferred the Regular Meeting Minutes of October 7, Regular Meeting Minutes of January 11, 2016 On order of Second Vice Chairperson Vaidya and there being no objection, the Committee of the Whole deferred the Regular Meeting Minutes of January 11, Regular Meeting Minutes of April 13, 2016 On order of Second Vice Chairperson Vaidya and there being no objection, the Committee of the Whole deferred the Regular Meeting Minutes of April 13, Third Quarter Transit Operations Performance Report On order of Second Vice Chairperson Vaidya and there being no objection, the Committee of the Whole received the FY2016 Third Quarter Transit Operations Performance Report. 11. Chief Operating Officer's Report On order of Second Vice Chairperson Vaidya and there being no objection, the Committee of the Whole received the Chief Operating Officer's Report. 12. July 4, 2016 Transit Service Changes On order of Second Vice Chairperson Vaidya and there being no objection, the Committee of the Whole received a report on the July 4, 2016 Transit Service Changes. Committee for Transit Accessibility Minutes Page 2 of 5 June 8, 2016

384 8.4.b REGULAR AGENDA 13. Determine the Committee's Chairperson, First Vice Chairperson and Second Vice Chairperson for 2016 On order of Second Vice Chairperson Vaidya and there being no objection, the Committee of the Whole deferred conducting voting to determine the Committee's Chairperson, First Vice Chairperson and Second Vice Chairperson for Transit Ridership Improvement Program (TRIP) Network Concepts Adam Burger, Senior Transportation Planner, provided a brief overview of the staff report and a presentation, highlighting: 1) Transit Ridership Improvement Program; 2) Ridership-coverage balance is key choice; 3) The purpose of public transit; 4) Transit access; 5) Access to jobs; 6) Access for residents; 7) Transit access for existing riders; 8) Next steps; and 9) Dedicated project web site. Members of the Committee discussed the following: 1) the ethics and morals of reducing routes and impacting transit dependent riders; 2) effects on bus route 81; 3) how reduction in routes affect paratransit; 4) how public meetings are advertised; 5) bus service connectivity and higher frequency in peak hours; 6) focusing on transportation to all places and not just employment centers; 7) difficulty for elderly and disabled people to travel half mile to access transit; 8) suggested adding analysis on access to medical centers; 9) suggested staff look at how previous cuts and policy changes have affected ridership; and 10) improved bus shelters for riders. Members of the Committee questioned the following: 1) will feedback from the meetings be brought to the Board in August and will they be presented with analysis of lines people have requested to keep; 2) can staff research which hospitals and medical centers do not have bus service; and 3) if community buses can be added in certain areas so people will not suffer. Mr. Burger stressed being presented are concepts and not final plans. He indicated feedback that is received from community meetings will be put together and presented to the Board. Members of the Committee requested the Board Office mail hardcopies of information sent via to Committee members who request it. Mr. Burger distributed the future dates of the community workshops for Next Network. Jim Unites, Deputy Director, Service and Transportation Planning, noted staff will take a look at transit servicing medical facilities. Second Vice Chairperson Vaidya thanked staff for providing the meeting schedule to the members. On order of Second Chairperson Vaidya and there being no objection, the Committee of the Whole received the Transit Ridership Improvement Program (TRIP) Network Concepts. 15. Next Network Light Rail Service Plan Jason Kim, Transportation Planner, provided a brief overview of the staff report and a presentation highlighting: 1) Existing system; 2) Milpitas BART Station; 3) Future high ridership potential; 4) Future medium ridership potential; 5) Final three scenarios; Committee for Transit Accessibility Minutes Page 3 of 5 June 8, 2016

385 8.4.b 6) Scenario 1 base; 7) Scenario 1+; 8) Scenario 2 Base; 9) Scenario 2+; 10) Scenario 3 base; 11) Scenario 3+; 12) Ridership and operating costs; 13) Next network comparison; and 14) Upcoming schedule. Members of the Committee discussed the following: 1) bus connectivity with light rail; 2) how light rail express service will work; 3) passenger concerns; and 4) current express service. Mr. Unites indicated information on passenger concerns can be provided to the Committee. He noted staff is leaning toward Scenario 2 which will provide a good connection from BART to job centers and better service to Levi s stadium for events. On order of Second Vice Chairperson Vaidya and there being no objection, the Committee of the Whole received an update on the Next Network Light Rail Service Plan. 16. Potential Impact of Next Network Concepts on Paratransit Service Area Mr. Burger provided a brief overview of the staff report and a presentation, highlighting: 1) Background; 2) Next Network concept maps; and 3) Next steps. Members of the Committee discussed the following: 1) evening and weekend service; 2) Outreach ridership data presented; 3) staff providing an analysis of how additional weekend and evening bus service might impact paratransit; 4) ability to change information in December 2016 once feedback is received from community meetings; and 5) fares. Ex-Officio Member Heatley indicated she can provide data to staff on places that are currently not able to receive paratransit service on evenings and weekends. Mr. Burger encouraged the Committee to share input and noted staff is able to present to existing community groups and organizations. On order of Second Vice Chairperson Vaidya and there being no objection, the Committee of the Whole received and discussed information on Potential Impact of Next Network Concepts on Paratransit Service Area. 17. Work Plan Update On order of Second Vice Chairperson Vaidya and there being no objection, the Committee of the Whole received the Work Plan Update. REPORTS 18. Committee Staff Report Aaron Vogel provided brief report on the following: 1) paratransit ridership down 17 percent; 2) Committee quorum; 3) Committee recruitment; and 4) the Governance and Audit Committee forwarded the CTA bylaws update to the Board for final approval. Ex-Officio Member Heatley provided clarification on Outreach ridership, noting client ridership is up but passenger ridership is down and indicated there is a transition in service as changes in funding are being made. On order of Second Vice Chairperson Vaidya and there being no objection the Committee received the Committee Staff Report. Committee for Transit Accessibility Minutes Page 4 of 5 June 8, 2016

386 8.4.b 19. Citizens Advisory Committee (CAC)/Citizens Watchdog Committee (CWC) Report There was no Citizens Advisory Committee (CAC)/Citizens Watchdog Committee (CWC) Report. 20. Chairperson's Report OTHER There was no Chairperson s Report. 21. ANNOUNCEMENTS Member Medrano apologized for missing the April Committee meeting. 22. ADJOURNMENT On order of Chairperson Morrow and there being no objection, the meeting was adjourned at 2:30 p.m. Respectfully submitted, Menominee L. McCarter, Board Assistant VTA Office of the Board Secretary Committee for Transit Accessibility Minutes Page 5 of 5 June 8, 2016

387 8.4.b CITIZENS ADVISORY COMMITTEE and 2000 MEASURE A CITIZENS WATCHDOG COMMITTEE Wednesday, June 8, 2016 NOTICE OF CANCELLATION NOTICE IS HEREBY GIVEN that the Santa Clara Valley Transportation Authority Citizens Advisory Committee and 2000 Measure A Citizens Watchdog Committee Meeting scheduled for Wednesday, June 8, 2016, at 4:00 p.m. has been cancelled. The next meeting of the Santa Clara Valley Transportation Authority Citizens Advisory Committee and 2000 Measure A Citizens Watchdog Committee Meeting is scheduled for Wednesday, July 13, 2016, at 4:00 p.m. at Conference Room B-104, Building B, 3331 North First Street, San Jose, California. Anita McGraw, Board Assistant VTA Office of the Board Secretary

388 8.4.b TECHNICAL ADVISORY COMMITTEE Thursday, June 9, 2016 NOTICE OF CANCELLATION NOTICE IS HEREBY GIVEN that the Santa Clara Valley Transportation Authority Technical Advisory Committee Meeting scheduled for Thursday, June 9, 2016, at 1:30 p.m. has been cancelled. The next meeting of the Santa Clara Valley Transportation Authority Technical Advisory Committee Meeting is scheduled for July 14, 2016, at 1:30 p.m. at Conference Room B-104, Building B, 3331 North First Street, San Jose, California. Michelle Oblena, Board Assistant VTA Office of the Board Secretary

389 8.4.b POLICY ADVISORY COMMITTEE Thursday, June 9, 2016 NOTICE OF CANCELLATION NOTICE IS HEREBY GIVEN that the Santa Clara Valley Transportation Authority Policy Advisory Committee Meeting scheduled for Thursday, June 9, 2016, at 4:00 p.m. has been cancelled. The next meeting of the Santa Clara Valley Transportation Authority Policy Advisory Committee is scheduled for July 14, 2016, at 4:00 p.m. in Conference Room B-104, Building B, 3331 North First Street, San Jose, California. Menominee L. McCarter, Board Assistant VTA Office of the Board Secretary

390 8.4.b CITIZENS ADVISORY COMMITTEE and 2000 MEASURE A CITIZENS WATCHDOG COMMITTEE Wednesday, July 13, 2016 NOTICE OF CANCELLATION NOTICE IS HEREBY GIVEN that the Santa Clara Valley Transportation Authority Citizens Advisory Committee and 2000 Measure A Citizens Watchdog Committee Meeting scheduled for Wednesday, July 13, 2016, at 4:00 p.m. has been cancelled. The next meeting of the Santa Clara Valley Transportation Authority Citizens Advisory Committee and 2000 Measure A Citizens Watchdog Committee Meeting is scheduled for Wednesday, August 10, 2016, at 4:00 p.m. at Conference Room B-104, Building B, 3331 North First Street, San Jose, California. Anita McGraw, Board Assistant VTA Office of the Board Secretary

391 8.4.b BICYCLE & PEDESTRIAN ADVISORY COMMITTEE Wednesday, July 13, 2016 NOTICE OF CANCELLATION NOTICE IS HEREBY GIVEN that the Santa Clara Valley Transportation Authority Bicycle and Pedestrian Advisory Committee Meeting scheduled for Wednesday, July 13, 2016, at 6:30 p.m. has been cancelled. The next meeting of the Santa Clara Valley Transportation Authority Bicycle and Pedestrian Advisory Committee Meeting is scheduled for August 10, 2016, at 6:30 p.m. at Conference Room B-104, Building B, 3331 North First Street, San José, California. Thalia Young, Board Assistant VTA Office of the Board Secretary

392 8.4.b POLICY ADVISORY COMMITTEE Thursday, July 14, 2016 NOTICE OF CANCELLATION NOTICE IS HEREBY GIVEN that the Santa Clara Valley Transportation Authority Policy Advisory Committee Meeting scheduled for Thursday, July 14, 2016, at 4:00 p.m. has been cancelled. The next meeting of the Santa Clara Valley Transportation Authority Policy Advisory Committee is scheduled for August 11, 2016, at 4:00 p.m. in Conference Room B-104, Building B, 3331 North First Street, San Jose, California. Menominee L. McCarter, Board Assistant VTA Office of the Board Secretary

393 8.4.c DOWNTOWN EAST VALLEY POLICY ADVISORY BOARD CALL TO ORDER Wednesday, June 1, 2016 MINUTES The Regular Meeting of the Downtown East Valley Policy Advisory Board (DTEV PAB) was called to order at 9:24 a.m. by Vice Chairperson Carrasco in Conference Room B-104, VTA River Oaks Campus, 3331 North First Street, San Jose, California. 1. ROLL CALL Attendee Name Title Status Magdalena Carrasco Vice Chairperson Present Cindy Chavez Member Present David Cortese Member Present Rose Herrera Chairperson Absent 2. PUBLIC PRESENTATIONS: There were no Public Presentations. CONSENT AGENDA 3. Regular Meeting Minutes of March 30, 2016 M/S/C (Chavez/Cortese) to approve the Regular Meeting Minutes of March 30, RESULT: APPROVED [UNANIMOUS] MOVER: Cindy Chavez, Member SECONDER: Dave Cortese, Member AYES: Carrasco, Chavez, Cortese NOES: None ABSENT: Herrera NOTE: M/S/C MEANS MOTION SECONDED AND CARRIED AND, UNLESS OTHERWISE INDICATED, THE MOTION PASSED UNANIMOUSLY North First Street San Jose, CA Administration Customer Service

394 8.4.c REGULAR AGENDA 4. Capitol Expressway Light Rail Project Status Update Ken Ronsse, Deputy Director, Construction, Engineering and Transportation, provided an update highlighting: 1) bicycle and pedestrian improvements; 2) light rail environmental document was sent to the Federal Transit Administration (FTA); and 3) recommended the Board of Directors reaffirm the 2000 Measure A priorities. Members of the Committee discussed the following: 1) pre-construction activities; 2) High Occupancy Vehicle (HOV) lanes; 3) improvements for the corridor; 4) 2000 Measure A priorities; and 5) project funding. Public Comment Roland Lebrun, Interested Citizen, commented on BART. Staff will bring a report on current traffic conditions and traffic conditions forecast when the project is complete to the August 31, 2016, meeting at the request of Member Chavez. Members of the Committee requested staff to bring a presentation on the Capitol Expressway Light Rail Project Status Update to the August 31, 2016, meeting. M/S/C (Cortese/Chavez) to recommend that: 1) the Board of Directors designate $50,000,000 to the Capitol Expressway Light Rail Project; and 2) the Board designate Fiscal Year 2019 (FY19) funds to cover the remaining cost of capital improvements of the project. Member Cortese clarified that the recommendation does not imply that both parts are necessary for the Committee's support. The Committee supports the project and would like to see that the FY19 money be designated for the remaining improvements. 5. Santa Clara-Alum Rock Bus Rapid Transit Project Status Update Member Chavez left her seat at 10:33 a.m. and a Committee of the Whole was declared. Mohamed Basma, Program Manager, Project Delivery, Engineering & Transportation Infrastructure Development, provided a presentation entitled Alum Rock/Santa Clara Bus Rapid Transit (BRT) Project Status Update, highlighting: 1) Construction Overview; 2) C830 - Items from Cancelled Contract; 3) Downtown and City Hall Stations (C837); 4) Alum Rock Roadway and Stations (C836); and 5) Alum Rock Parking Update. Member Chavez returned at 10:37 a.m. and the quorum was re-established. Members of the Committee discussed providing adequate notice for paving projects. On Order of Vice Chairperson Carrasco, and there being no objection, the Committee received the Santa Clara-Alum Rock Bus Rapid Transit (BRT) Project Status Update. Downtown East Valley Policy Advisory Board Minutes Page 2 of 3 June 1, 2016

395 8.4.c 6. Alum Rock BRT Construction Delay Assessment Pat Hagan and Joe Iacobucci, Subject Matter Experts from the Auditor General s Office, provided a presentation entitled Alum Rock Bus Rapid Transit (BRT) Project Delay Assessment, highlighting: 1) Alum Rock/Santa Clara Bus Rapid Transit Project; 2) Alum Rock Project Background; 3) Observations; 4) Construction Process; 5) On-Schedule Completion; 6) Safety; 7) Minimize Community Impacts; 8) Contracting; 9) Contractor Qualification; 10) Contractor Expectations; 11) Scope Definition; 12) Contract and Policy Compliance; 13) Communications; 14) Public Messaging; 15) Response to Inquiries; 16) Build Community Understanding Prior to Construction; 17) Planning and Design Coordination; 18) Coordinated Process; and 19) Best Practices. Member Chavez left her seat at 10:44 a.m. and a Committee of the Whole was declared. Members of the Committee discussed the following: 1) impact mitigation plan; 2) best practices; 3) contractor qualifications; and 4) continued communication with the businesses as they rebuild their customer base. Member Chavez returned at 11:01 a.m. and the quorum was re-established. Member Chavez requested that a timeline for completion of recommendations and management responses be included when it is presented to the Board of Directors at their August 4, 2016 meeting. On Order of Vice Chairperson Carrasco, and there being no objection, the Committee reviewed and received the Auditor General's Report on the Alum Rock Bus Rapid Transit Project Construction Delay Assessment. 7. ANNOUNCEMENTS Jim Lawson, Government Affairs Director & Executive Policy Advisor and Staff Liaison, announced that the next meetings are August 31, 2016 and December 19, ADJOURNMENT On Order of Vice Chairperson Carrasco, and there being no objection, the meeting was adjourned at 11:13 a.m. Respectfully submitted, Thalia Young, Board Assistant VTA Office of the Board Secretary Downtown East Valley Policy Advisory Board Minutes Page 3 of 3 June 1, 2016

396 8.4.c DIRIDON STATION JOINT POLICY ADVISORY BOARD Friday, June 17, 2016 MINUTES CALL TO ORDER The Regular Meeting of the Diridon Station Joint Policy Advisory Board ( Committee ) was called to order at 3:06 p.m. by Chairperson Liccardo in Wing Room 120, San José City Hall, 200 East Santa Clara Street, San José, California. 1. ROLL CALL Attendee Name Title Status Tom Blalock Member Present Cindy Chavez Vice Chairperson Present Sam Liccardo Chairperson Present Pierluigi Oliverio Member Present Raul Peralez Member Present Jim Beall Ex-Officio Absent Rod Diridon, Sr. Ex-Officio Present A quorum was present. 2. PUBLIC PRESENTATIONS Roland Lebrun, Interested Citizen, commented about meeting frequency and availability of meeting presentations. He suggested to include staff presentations in the packet upon release of the agenda and consider modifying meeting times to after-work hours, or record and post the proceedings online. 3. ORDERS OF THE DAY There were no Orders of the Day. CONSENT AGENDA 4. Regular Meeting Minutes of December 18, 2015 M/S/C (Oliverio/Peralez) to approve the Regular Meeting Minutes of December 18, NOTE: M/S/C MEANS MOTION SECONDED AND CARRIED AND, UNLESS OTHERWISE INDICATED, THE MOTION PASSED UNANIMOUSLY North First Street San Jose, CA Administration Customer Service

397 8.4.c Diridon Station Joint Policy Advisory Board Meeting Schedule M/S/C (Oliverio/Peralez) to approve the 2016 Diridon Station Joint Policy Advisory Board Meeting Schedule. RESULT: MOVER: SECONDER: AYES: NAYES: ABSENT: APPROVED [UNANIMOUS] Consent Agenda Items Pierluigi Oliverio, Member Raul Peralez, Member Blalock, Liccardo, Oliverio, Peralez None Chavez REGULAR AGENDA 6. Task Force Approach to Interim Construction and Parking/Access Strategy Jim Ortbal, Director of the Department of Transportation for City of San José, provided a presentation, highlighting: 1) mutual goals of the partner agencies; 2) overview of the Diridon area site and parking options, noting current parking demands; 3) surface parking impacts between due to developments; 4) short and long term transit/rail service parking demands; 5) overview of path forward towards solutions, noting sample investment strategy; 6) framework of an agreement will be presented to the Committee for discussion and consideration in December 2016; 7) importance of interim solutions supporting long term solution needs; and 8) implementation of interim solutions by John Ristow, Director of Planning & Program Development, noted the Committee s meeting schedule matches well with planned milestones. Ex-Officio Member Diridon made the following comments: 1) explore first-and-last mile solutions alongside parking issue; 2) consider underground parking; 3) noted importance of an integrated station area master plan; 4) consider obtaining environmental clearance for the entire Diridon Station area to facilitate environmental clearance of individual projects within the area; and 5) noted importance of engaging in community outreach early in the process. Member Blalock noted surface parking is more economical and to consider parking structures with flat floors. Public Comment Mr. Lebrun made the following comments: 1) be mindful of impacts to the SAP Center and San Jose Sharks operations; 2) parking could buffer commercial activity from rail operations, citing examples in Redwood City and Europe; and 3) consider Pacific Gas & Electric (PG&E) substation relocation to maximize land use. Vice Chairperson Chavez arrived at the meeting and took her seat at 3:30 p.m. Diridon Station Joint Policy Advisory Board Minutes Page 2 of 5 June 17, 2016

398 8.4.c On order of Chairperson Liccardo and there being no objection, the Committee reviewed and received the Task Force approach to Interim Construction and Parking/Access Strategy. 7. Diridon Interagency Task Force Workplan and Milestones Jim Lawson, Government Affairs Director and Executive Policy Advisor, gave a brief summary of the staff report. Member Oliverio left his seat at 3:34 p.m. Nanci Klein, Assistant Director of Economic Development, City of San José, provided an overview of the Diridon Station Intermodal Task Force (Task Force) organization, highlighting working groups and their composition and roles. Member Oliverio returned to his seat at 3:39 p.m. Mr. Ristow gave an overview of the Task Force key activities workplan, noting near term milestones such as release of the San Jose Diridon Transportation Facilities Master Plan Request for Proposal (RFP) and initiation of the Interim Construction and Parking/Access Program. Members of the Committee and staff discussed the following: 1) how to maximize integration of commercial/private development with the station; 2) inclusion of BART and other service partners in the working groups; 3) airport connection strategy; 4) result of RFP could help inform Joint Powers Authority (JPA) structure; 5) clarification between the Diridon Station Joint Policy Advisory Board and the JPA; and 6) policy initiatives should consider agency interests and priorities. Public Comment Michael Tsai, San Jose YIMBY, made the following comments: 1) importance of integrated effort from all involved to produce a positive outcome; 2) noted best practices examples in South Korea and Hong Kong pertaining to maximizing development and revenue stream; and 3) noted best practices examples for Pudong International Airport and Incheon International Airport pertaining to airport connections. Mr. Lebrun made the following comments: 1) establishment of the JPA and appointment of an executive director should be a top priority; 2) engage retail master lessee for the development at the earliest opportunity; and 3) examine underground transit circulation. Scott Knies, San Jose Downtown Association, commented on the need to provide parking, participation in the public outreach effort, including discussions on financing, and encouraged density in the Diridon Station area. Upon query of Members of the Committee, Nuria I. Fernandez, General Manager and CEO, noted accelerating timeline of RFP for developers could be examined, though station area may not be ready for development for another eight to nine years. On order of Chairperson Liccardo and there being no objection, the Committee received an update on Diridon Interagency Task Force Workplan and Milestones. Diridon Station Joint Policy Advisory Board Minutes Page 3 of 5 June 17, 2016

399 8.4.c 8. California High Speed Rail Update Ben Tripousis, Northern California Regional Director, California High Speed Rail Authority (CHSRA), provided a report, noting: 1) overview of construction activity in the Central Valley; 2) selection of construction team for the San Jose to Merced project section; 3) key environmental considerations; 4) overview of the blended system for San Francisco to San Jose, noting milestone schedule; 5) overview of the San Jose to Merced project section, noting preliminary schedule; and 6) Diridon Station development discussions with partner agencies. Mr. Tripousis expressed his appreciation of Member Peralez on his assistance with outreach to the Gardner community in the City of San Jose. Mr. Tripousis noted the deadline for public and agency comments to be included in the scoping report has been extended to July 20, Public Comment Mr. Lebrun made the following comments: 1) final funding figures under the Business Plan may be dependent on issues such as cap-and-trade and bonds; 2) expressed appreciation of comment period extension; and 3) consider studying an underground alignment to connect with the airport. Mr. Tsai expressed his appreciation to Mr. Tripousis and his team, Member Oliverio, and Member Peralez for their responsiveness to community request. He noted importance and significance of the high speed rail project for the City of San Jose and the country. Chairperson Liccardo relinquished his seat to Vice Chairperson Chavez and left the meeting at 4:21 p.m. On order of Vice Chairperson Chavez and there being no objection, the Committee received an update on California High Speed Rail. 9. Diridon Intermodal Station Area Development Projects Ms. Klein expressed appreciation of CHSRA for their support in grant applications. She introduced Bill Ekern, City of San Jose Consultant. Mr. Ekern provided a brief report, noting release of Request for Qualifications (RFQ) for infrastructure engineering analysis and financial analysis that would assess infrastructure needs. He added staff is in the process of drafting an RFQ to examine development opportunities, noting considerable private property in the station area, in addition to government properties. Upon query of Vice Chairperson Chavez, Mr. Ekern noted a need to understand current infrastructure conditions and a comprehensive infrastructure assessment could inform development potential. On order of Vice Chairperson Chavez and there being no objection, the Committee received an update on development projects within the Diridon Intermodal Station area. Diridon Station Joint Policy Advisory Board Minutes Page 4 of 5 June 17, 2016

400 8.4.c 10. Legislative Update Aaron Quigley, Senior Policy Analyst, provided written material to the Committee, titled Government Affairs Report June 17, 2016, highlighting State Legislature approved the Fiscal Year state budget, with focus on cap-and-trade and transportation funding. On order of Vice Chairperson Chavez and there being no objection, the Committee received the Legislative Update. 11. Caltrain Modernization Elizabeth Scanlon, Caltrain Planning Manager, SamTrans, gave a brief report, noting status of major contracts solicitations for electrification infrastructure and electric vehicles. She noted the new electric vehicles would include onboard restrooms. Members of the Committee made the following comments: 1) thanked staff for the creative approach on the 2-level doors option; 2) suggested that future contracts to restore the Diridon Station s ceiling should include provisions to repaint and seal the ceiling in a manner consistent with the historic character of the building; and 3) station platform lengths should correspond with train car lengths. Ex-Officio Member Diridon announced the Mineta Transportation Institute 2015 Annual Report has been published and includes information from studies about high speed rail around the world. Public Comment Member Oliverio left the meeting at 4:33 p.m. Mr. Lebrun made comments pertaining to the Caltrain Modernization Program funding and bond act requirements. On order of Vice Chairperson Chavez and there being no objection, the Committee received update on Caltrain Modernization. 12. ANNOUNCEMENTS There were no Announcements. 13. ADJOURNMENT On order of Vice Chairperson Chavez and there being no objection, the meeting was adjourned at 4:36 p.m. Respectfully submitted, Michelle Oblena, Board Assistant VTA Office of the Board Secretary Diridon Station Joint Policy Advisory Board Minutes Page 5 of 5 June 17, 2016

401 8.4.C STATE ROUTE 85 CORRIDOR POLICY ADVISORY BOARD Monday, June 20, 2016 MINUTES CALL TO ORDER The Regular Meeting of the State Route 85 Corridor Policy Advisory Board (SR 85) was called to order at 10:00 a.m. by Chairperson Sinks in Mountain View City Hall, Council Chambers, 500 Castro Street, 2nd Floor, Mountain View, CA ROLL CALL Attendee Name Megan Satterlee Barry Chang Howard Miller Burton Craig Rod Sinks Jeannie Bruins John McAlister Marcia Jensen Paul Resnikoff Rob Rennie Chappie Jones Mary-Lynne Bernald Walter Huff Elizabeth Gibbons Glenn Hendricks Tara Martin-Milius Pat Showalter Bijan Sartipi Dan McElhinney Title Member Alternate Member Member Alternate Member Chairperson Alternate Member Vice Chairperson Member Member Alternate Member Member Alternate Member Member Alternate Member Member Alternate Member Alternate Member Ex-Officio Member Ex-Officio Alt. Member Status Present Absent Absent Absent Present Present Present Absent Present Present Present Present Absent Absent Absent Present Absent Absent Absent A quorum was present. 2. PUBLIC PRESENTATIONS: Carl Guardino, President and CEO, Silicon Valley Leadership Group (SVLG), expressed gratitude to the Committee, the VTA Board of Directors (Board), and VTA staff for their support and efforts through the process of getting the tax measure on the November ballot. Meir Levi, Interested Citizen, made the following comments: 1) expressed concern about the noise on State Route 85 (SR 85); 2) the quality of life for residents living near SR 85; and 3) requested more detailed information on noise abatement plans North First Street San Jose, CA Administration Customer Service c

402 8.4.c 3. ORDERS OF THE DAY There were no Orders of the Day. CONSENT AGENDA Public Comment Roland Lebrun, Interested Citizen, requested the following clarifying changes be made to his comments on the May 23, 2016 minutes, Regular Meeting Minutes: 1) referenced Agenda Item #3: Public Presentations, and requested the addition of analyze traffic patterns to gather information on where passengers are getting on and off transit to his comments; and 2) referenced Agenda Item #6: Recommendation by the SR 85 Corridor PAB to the VTA Board of Directors on Transportation Improvements in the SR 85 Corridor for Inclusion in Envision Silicon Valley, and requested the inclusion of using double decker buses instead of articulated buses to accommodate more riders to his comments. 4. Regular Meeting Minutes of May 23, 2016 M/S/C (Jones/McAlister) to approve the Regular Meeting Minutes of May 23, 2016, as amended. RESULT: MOVER: SECONDER: AYES: NAYES: ABSENT: ADOPTED [UNANIMOUS] Chappie Jones, Member John McAlister, Vice Chairperson Bernald, Jones, Martin-Milius, McAlister, Rennie, Resnikoff, Satterlee, Sinks None Huff REGULAR AGENDA 5. VTA Board Inclusion of the PAB s Recommendations in the November 2016 Sales Tax Measure Steven Fisher, Senior Transportation Planner, provided an overview of the staff report. On order of Chairperson Sinks, and there being no objection, the Committee received a report on the VTA Board of Directors inclusion of the PAB s recommendations in the November 2016 Sales Tax Measure. 6. Information on the Recommended SR 85 Corridor Projects Mr. Fisher reviewed the staff report. Members of the Committee and Staff discussed the following: 1) proposed schedule; 2) beginning the comprehensive study before the November election; 3) noise abatement; 4) project funding; 5) the VTA Board will decide the priority of projects; and 6) the role of the Committee. State Route 85 Corridor Policy Advisory Board Page 2 of 4 Monday, June 20, 2016

403 8.4.c Public Comment Mr. Levi requested additional information on the pilot programs. Mr. Lebrun suggested VTA analyze where Google and other companies are picking up passengers. Members of the Committee requested that staff provide information on the identified areas for pilot projects. On order of Chairperson Sinks, and there being no objection, the Committee received information on the recommended SR 85 Corridor Projects. 7. Recommend Language Regarding SR 85 for Proposed Ballot Measure John Ristow, Director of Planning & Program Development and Staff Liaison, reviewed the changes made to the ballot language recommendation to better express the intent of the Committee. M/S/C (McAlister/Satterlee) to recommend to the Santa Clara Valley Transportation Authority (VTA) Board of Directors that the following language be used in the proposed Ballot Resolution describing the intent of the State Route 85 Corridor Policy Advisory Board: To fund new transit and congestion relief projects on SR 85, including a new transit lane from SR 87 in San Jose to U.S. 101 in Mountain View. Additionally this category will fund noise abatement along SR 85 and will provide funding to study transportation alternatives that include, but are not limited to, Bus Rapid Transit with infrastructure such as stations and access ramps, Light Rail Transit, and future transportation technologies that may be applicable. RESULT: MOVER: SECONDER: AYES: NAYES: ABSENT: ADOPTED [UNANIMOUS] John McAlister, Vice Chairperson Megan Satterlee, Member Bernald, Jones, Martin-Milius, McAlister, Rennie, Resnikoff, Satterlee, Sinks None Huff 8. ANNOUNCEMENTS After a brief discussion, the Committee decided to cancel the August 22, 2016 meeting and will meet on September 26, Upon inquiry of Vice Chairperson McAlister, Jim Lawson, Government Affairs Director & Executive Policy Advisor, noted the next Board meeting is Friday, June 24, 2016 at 9:00 a.m. at the County Board of Supervisors Chambers. State Route 85 Corridor Policy Advisory Board Page 3 of 4 Monday, June 20, 2016

404 8.4.c 9. ADJOURNMENT On order of Chairperson Sinks and there being no objection, the meeting was adjourned at 10:44 a.m. Respectfully submitted, Thalia Young, Board Assistant VTA Office of the Board Secretary State Route 85 Corridor Policy Advisory Board Page 4 of 4 Monday, June 20, 2016

405 8.4.c EL CAMINO REAL RAPID TRANSIT POLICY ADVISORY BOARD Wednesday, June 29, 2016 NOTICE OF CANCELLATION NOTICE IS HEREBY GIVEN that the Santa Clara Valley Transportation Authority El Camino Real Rapid Transit Policy Advisory Board meeting scheduled for Wednesday, June 29, 2016, at 3:00 p.m. has been cancelled. The next regular meeting of the Santa Clara Valley Transportation Authority El Camino Real Rapid Transit Policy Advisory Board is scheduled for Wednesday, July 27, 2016, at 3:00 p.m. in Conference Room B-104, Building B, 3331 North First Street, San Jose, California. Anita McGraw, Board Assistant VTA Office of the Board Secretary

406 8.4.c 8.4.C EL CAMINO REAL RAPID TRANSIT POLICY ADVISORY BOARD Wednesday, July 27, 2016 NOTICE OF CANCELLATION NOTICE IS HEREBY GIVEN that the Santa Clara Valley Transportation Authority El Camino Real Rapid Transit Policy Advisory Board meeting scheduled for Wednesday, July 27, 2016, at 3:00 p.m. has been cancelled. The next regular meeting of the Santa Clara Valley Transportation Authority El Camino Real Rapid Transit Policy Advisory Board is scheduled for Wednesday, August 31, 2016, at 3:00 p.m. in Conference Room B-104, Building B, 3331 North First Street, San Jose, California. Thalia Young, Board Assistant VTA Office of the Board Secretary