Agenda REVISED. Thursday, April 4, Special Meeting: 1:00 P.M. Regular Meeting: 2:00 P.M.

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1 REVISED 810 Mission Avenue Oceanside, CA (760) (760) (fax) Agenda Thursday, April 4, 2013 Special Meeting: 1:00 P.M. Regular Meeting: 2:00 P.M. Location: Board Room 810 Mission Ave. Oceanside, CA BOARD OF DIRECTORS Bill Horn County Supervisor Board Chair Mark Packard Councilmember, City of Carlsbad Board Vice Chair Donald Mosier Councilmember, City of Del Mar MISSION North County Transit District s mission is to deliver safe, convenient, reliable and user-friendly public transportation services. Tony Kranz Councilmember, City of Encinitas Ed Gallo Councilmember, City of Escondido Gary Felien Councilmember, City of Oceanside Rebecca Jones Vice Mayor, City of San Marcos Mike Nichols Mayor, City of Solana Beach John J. Aguilera Councilmember, City of Vista EXECUTIVE DIRECTOR Matthew O. Tucker GENERAL COUNSEL Paula de Sousa VISION Our vision is to build an integrated transit system that enables our customers to travel easily and efficiently throughout our growing region. For individuals with disabilities, we will provide assistive services. To obtain such services or copies of documents in an alternate format, please call or write, a minimum of 72 hours prior to the event, to request these needed reasonable modifications. We will make every attempt to accommodate requests that do not give 72 hour notice. Please contact the Clerk of the Board at (760) Persons with hearing impairment please use the California Relay Service (CRS): using TTY; using voice; for Spanish. CRS Customer Service: or TTY. Any writings or documents provided to a majority of the members of the NCTD Board of Directors regarding any item on this agenda will be made available for public inspection in the department of the Clerk of Board located at 810 Mission Avenue, Oceanside, CA 92054, during normal business hours.

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3 CALL TO ORDER ROLL CALL OF BOARD MEMBERS A. WORKSHOP (60 minutes) W1. San Dieguito Bridge Project Update The San Dieguito Double Track (SDDT) project will add 1.1 mile of second mainline rail track; replace the 96-year-old wooden trestle San Dieguito Railway River Bridge; and add a customer platform to access the Del Mar Fairgrounds (Reed Caldwell, Chief Development Officer) W2. LIFT Performance Update (Kim Thorp, ADA Administrator) W Legislative Agenda (Bridget Hennessey, Chief of Staff/Intergovernmental Affairs Officer) REGULAR MEETING BEGINNING AT 2:00 PM CALL TO ORDER ROLL CALL OF BOARD MEMBERS PLEDGE OF ALLEGIANCE TO THE AMERICAN FLAG CHANGES TO THE AGENDA PUBLIC COMMUNICATIONS There is a time limit of 15 minutes for this section of Public Communications and each speaker is limited to three minutes for their presentation. All persons wishing to address the Board during the meeting must complete a Request to Speak form. These forms are provided in a box at the table in the hallway, and must be completed and given to the Clerk of the Board before that agenda item is called. RECOMMENDED ACTION B. MINUTES FOR REGULAR MEETING FOR MARCH 21, 2013 (Pages 6 10) Approve April 4,

4 All matters listed under CONSENT are considered by the Board to be routine and will be enacted by one motion. There will be no separate discussion on these items prior to the time the Board votes on the motion, unless members of the Board, the Executive Director, or the public, request specific items to be discussed and/or removed from the Consent Calendar for separate action. A request from the public to discuss an item must be filed with the Clerk of the Board on the Request to Speak form before that agenda item is called. ITEMS PULLED FROM CONSENT WILL BE MOVED TO THE END OF THE AGENDA RECOMMENDED ACTION C. CONSENT ITEMS (Tabs 1 6) (Estimated Duration: 2 minutes) Items reviewed and recommended for approval by the Executive Committee (Exec), Marketing, Service Planning and Business Development Committee (MSPBD), Performance, Administration and Finance Committee (A&F), Staff (S), Board (B) or Board Workshop (W) 1. Waive Committee Budget Review Requirement of NCTD Board Policy No. 17 Budget Development (S) (Attachment 1A) (Ryan Bailey, Chief Financial Officer) 2. Ratify Purchase Order OS to Transit Sourcing Services, Inc. (S) (David Murphy, Chief Operations Officer) 3. Award Contract OS for Banking Services (S) (Ryan Bailey, Chief Financial Officer) 4. Easement Amendment for City of Oceanside Coastal Rail Trail (S) (Attachment 4A) (Reed Caldwell, Chief Development Officer) 5. State Lobbying Services, RFP13036-OS (S) (Bridget Hennessey, Chief of Staff/Intergovernmental Affairs Officer) Legislative Agenda (S) (Attachment 6A) (Bridget Hennessey, Chief of Staff/Intergovernmental Affairs Officer) Approve Approve Approve Approve Approve Approve D. OTHER BUSINESS (Tabs 7 8) (Estimated Duration: 40 minutes) 7. FY 2014 Budget Assumptions (S) (Attachment 7A) (Ryan Bailey, Chief Financial Officer) 8. Amended LOSSAN Joint Powers Agreement (S) (AttachmentS 8A, 8B and 8C) (Bridget Hennessey, Chief of Staff/Intergovernmental Affairs Officer) Approve Potential Action April 4,

5 EXECUTIVE DIRECTOR S REPORT BOARD MEMBER REPORTS, COMMENTS AND CORRESPONDENCE REMAINING PUBLIC COMMUNICATIONS For any remaining speakers who have completed a Request to Speak form before the start of the meeting. ADJOURNMENT CERTIFICATIONS AND RULES (FOR BOARD AND PUBLIC INFORMATION) Posting of Board Agenda (Page 28) Rules for Public Speakers at meetings of the North County Transit District (Page 29) The next Board Meeting is scheduled for 2:00 p.m. on Thursday, May 2, 2013 at 810 Mission Avenue, Oceanside, CA April 4,

6 MINUTES OF THE SPECIAL MEETING/CLOSED SESSION AND THE REGULAR MEETING OF NORTH COUNTY TRANSIT DISTRICT HELD MARCH 21, 2013 PAGE 1 CALL TO ORDER Bill Horn, Board Chair, called the special/closed session meeting to order at 1:00 p.m. ROLL CALL OF BOARD MEMBERS Mark Packard (City of Carlsbad); Don Mosier (City of Del Mar); Tony Kranz (City of Encinitas); Ed Gallo (City of Escondido); Gary Felien (City of Oceanside); Rebecca Jones (City of San Marcos); John Aguilera (City of Vista); Bill Horn (County of San Diego). Mike Nichols (City of Solana Beach) arrived at 1:01 p.m. The Board went into Closed Session at 1:01 p.m. to discuss items i and ii. CLOSED SESSION i. Closed Session Pursuant to Government Code Section (d)(4) Conference with Legal Counsel Initiation of Litigation 2 Potential Cases ii. Closed Session Pursuant to Government Code Section (d)(1) Conference with Legal Counsel--Existing Litigation Dave McMahon Construction, Inc. vs. Adams Mallory Construction Co., Inc., Case No CU-MC-CJC The Board returned from Closed Session at 2:16 p.m. Paula de Sousa, General Counsel, stated that there was no reportable action from Closed Session. WORKSHOP W1. SPRINTER Service Interruption The Board of Directors received an update on the SPRINTER service interruption. CALL TO ORDER Bill Horn, Board Chair, called the regular meeting to order at 2:25 p.m. April 4,

7 MINUTES OF THE SPECIAL MEETING/CLOSED SESSION AND THE REGULAR MEETING OF NORTH COUNTY TRANSIT DISTRICT HELD MARCH 21, 2013 PAGE 2 ROLL CALL OF BOARD MEMBERS Mark Packard (City of Carlsbad); Don Mosier (City of Del Mar); Tony Kranz (City of Encinitas); Ed Gallo (City of Escondido); Gary Felien (City of Oceanside); Rebecca Jones (City of San Marcos); Mike Nichols (City of Solana Beach); John Aguilera (City of Vista); Bill Horn (County of San Diego). PLEDGE OF ALLEGIANCE TO THE AMERICAN FLAG Board member John Aguilera led the Pledge of Allegiance to the American Flag. CHANGES TO THE AGENDA None PUBLIC COMMUNICATIONS Ms. Leanne Cooper, Oceanside, CA, commented with her concerns regarding lack of bus service on Saturdays and Sundays on route 323. APPROVAL OF MINUTES MOTION BY REBECCA JONES TO APPROVE THE MINUTES OF THE REGULAR MEETING OF FEBRUARY 21, 2013, SECONDED BY MARK PACKARD. MOTION CARRIED UNANIMOUSLY. CONSENT ITEMS 1. Resolution Authorizing the Executive Director to Execute and File Claims for Funds Authorized Under FTA Section 5311 with the California Department of Transportation (Caltrans) 2. Bank of America Contract Extension 3. Adopt Resolution #13-04 Amending Board Policy No. 8 to Approve the Amended Conflict of Interest Code April 4,

8 MINUTES OF THE SPECIAL MEETING/CLOSED SESSION AND THE REGULAR MEETING OF NORTH COUNTY TRANSIT DISTRICT HELD MARCH 21, 2013 PAGE 3 4. Intergovernmental Affairs Report 5. Monthly Ridership and Performance Report **AGENDA ITEM 6 WAS PULLED BY THE PUBLIC AND WAS DISCUSSED AFTER AGENDA ITEM 14. MOTION BY MARK PACKARD TO APPROVE AGENDA ITEMS 1, 2, 3, 4 AND 5, SECONDED BY DON MOSIER. MOTION CARRIED UNANIMOUSLY. OTHER BUSINESS 7. Appointment of Chair of Marketing, Service Planning and Business Development Committee and Member of Executive Committee MOTION BY MARK PACKARD TO APPOINT REBECCA JONES AS CHAIR OF MARKETING, SERVICE PLANNING AND BUSINESS DEVELOPMENT COMMITTEE AND MEMBER OF EXECUTIVE COMMITTEE, SECONDED BY JOHN AGUILERA. MOTION CARRIED UNANIMOUSLY. 8. Memorandum of Understanding with Amtrak Regarding Rail to Rail Program MOTION BY MIKE NICHOLS TO APPROVE AGENDA ITEM 8, SECONDED BY ED GALLO. MOTION CARRIED UNANIMOUSLY. 9. Rail Improvement Program NO ACTION REQUIRED. 10. Amended LOSSAN Joint Powers Agreement MOTION BY ED GALLO TO APPROVE AGENDA ITEM 10, SECONDED BY REBECCA JONES. MOTION CARRIED UNANIMOUSLY. April 4,

9 MINUTES OF THE SPECIAL MEETING/CLOSED SESSION AND THE REGULAR MEETING OF NORTH COUNTY TRANSIT DISTRICT HELD MARCH 21, 2013 PAGE 4 INFORMATION ITEMS 11. Monthly Operating Performance Report NO ACTION REQUIRED. MARK PACKARD LEFT AT 3:22 P.M. 12. Monthly Safety Report NO ACTON REQUIRED. 13. Monthly Security Report Board member Aguilera requested the monthly security report be revised to include separate statistics for fire and for police, rather than a combined total. NO ACTION REQUIRED. 14. Compliance Review of Universal Protection Services NO ACTION REQUIRED. CONSENT ITEMS continued 6. Ratify Contract, Executed by the Executive Director in Light of Exigent Circumstances, with U.S. Coachways, Inc. for Coach Bus Services Relating to the Suspension of SPRINTER Service Ms. Joyce Lavely, Carlsbad, CA, provided comments regarding Agenda Item 6 being moved to the end of the agenda and on sub-contracting of the district s operations. Paula de Sousa, General Counsel, stated that it is District policy and it s stated clearly on the agenda that items pulled from the Consent Calendar will be moved to the end of the agenda. MOTION BY TONY KRANZ TO APPROVE AGENDA ITEM 6, SECONDED BY JOHN AGUILERA. MOTION CARRIED UNANIMOUSLY. April 4,

10 MINUTES OF THE SPECIAL MEETING/CLOSED SESSION AND THE REGULAR MEETING OF NORTH COUNTY TRANSIT DISTRICT HELD MARCH 21, 2013 PAGE 5 CHIEF EXECUTIVE OFFICER S REPORT None BOARD MEMBER REPORTS, COMMENTS AND CORRESPONDENCE Don Mosier spoke on a CPUC meeting he attended regarding Next-Generation Incident Command System (NICS) which is coordination between various responders and they would like to integrate rail locations. He also spoke on his concerns regarding the Del Mar bluffs. REMAINING PUBLIC COMMUNICATIONS None ADJOURNMENT The meeting adjourned at 4:00 p.m. Submitted by Jill McNaughton, Clerk of the Board for North County Transit District. CHAIRMAN: CLERK OF THE BOARD: DATE: For individuals with sensory disabilities, this document is available in alternate formats. For information, please contact the Clerk of the Board at 760/ Persons with hearing impairment, please use the California Relay Service (CRS): 800/ TTY; 800/ voice; 800/ Spanish. CRS Customer Service: 800/ or TTY. April 4,

11 Agenda Item # 1 WAIVE COMMITTEE BUDGET REVIEW REQUIREMENT OF NCTD BOARD POLICY NO. 17 BUDGET DEVELOPMENT Time Sensitive X Consent X STAFF RECOMMENDATION: Approve a waiver of NCTD Board Policy No. 17 allowing staff to take the completed FY 2014 draft budget directly to the Board in May 2013 for review rather than to the Performance, Administration, and Finance Committee. BACKGROUND INFORMATION: NCTD s Policy No. 17 Budget Development requires that completed budgets be reviewed at the policy level by the Performance, Administration, and Finance Committee of the Board of Directors to ensure the appropriateness of programs and expenses and to ensure that they meet District goals and objectives for the upcoming budget year. The Performance, Administration, and Finance Committee of the Board of Directors is composed of four NCTD Board members. Waiving the requirement to present the completed budget for review by this committee will allow staff to present budget information to the entire NCTD Board of Directors. Given that six new members have recently joined the NCTD Board, staff believe it is important for new members to see the details and participate in the early discussions that will shape the FY 2014 budget. The following summarizes the schedule for the FY 2014 operating budget review process: April 4, 2013, Board of Directors meeting Staff presentation of FY 2014 operating budget assumptions. May 16, 2013, Board of Directors meeting Review and approval to release for public comment of revenue and expense elements in the completed FY 2014 draft budget. Per Policy No. 17, the draft budget will include actual final results from FY 2011 and FY 2012, projected results for FY 2013, and the proposed budget for FY June 20, 2013, Board of Directors meeting Hold a public hearing, and staff presentation of the FY 2014 operating budget and Capital Improvement Program (CIP) to NCTD s Board for final consideration and adoption. April 4,

12 June 21, 2013, SANDAG Transportation Committee Provide an informational presentation to the SANDAG Transportation Committee of the NCTD FY 2014 operating budget and five year CIP plan for FY Staff recommend that the Board waive the requirement of Policy No. 17 to take the completed FY 2014 draft budget to the Performance, Administration, and Finance Committee for review, and instead take the completed FY 2014 draft budget directly to the Board of Directors on May 16, 2013, for review. ATTACHMENT: 1A Board Policy No. 17 BUSINESS PLAN: Goal/Strategic Direction: Improve Financial Health FISCAL IMPACT: None COMMITTEE REVIEW: None Initiative: FF1 Effective Fiscal Management STAFF CONTACT: Ryan Bailey, Chief Financial Officer Phone: 760/ April 4,

13 Agenda Item # 2 RATIFY PURCHASE ORDER OS TO TRANSIT SOURCING SERVICES, INC. Time Sensitive X Consent X STAFF RECOMMENDATION: Ratify the purchase order executed by the Executive Director under exigent circumstances with Transit Sourcing Services, Inc. (TSS) for the purchase of SPRINTER diesel multiple unit (DMU) wheels. BACKGROUND INFORMATION: On March 21, 2013, Matthew O. Tucker, Executive Director, declared an exigent circumstance and used the Board-granted authority under Policy No. 19 to award and execute a purchase order with TSS for the purchase of SPRINTER DMU wheels manufactured by BONATRANS a.s. in the Czech Republic. The cost of the purchase order is $265,060 for the delivery of 116 power truck wheels and 58 non-power truck wheels, customs and duty fees included, for delivery to the SPRINTER Operations Facility in Escondido no later than August 31, Additionally, the District is responsible to pay State of California Use Tax of $20, The total cost of the delivered wheels is $285, ATTACHMENT: None The current wheels are nearing the end of their service life and must be replaced over the next 8 to 15 months. NCTD s FY14 capital improvement program includes funding to support this procurement and assumed that wheels would be delivered in the late fall to winter of 2013/2014. Based on the shutdown of the SPRINTER, staff and our contractors determined that advancing this procurement and delivery date to not later than August 31, 2013 provided a secondary option to restoring the SPRINTER to normal operations should the primary option of installing split rotors prove unsuccessful. Staff recommends that the Board ratify the contract with TSS, executed by the Executive Director in light of exigent circumstances, for replacement DMU wheels, with a contract value of $265, plus State of California Use Tax of $20, April 4,

14 BUSINESS PLAN: Goal/Strategic Direction: Enhance Safety and Security Initiative: SS1 Foster Safety Culture FISCAL IMPACT: The fiscal impact of this staff report will not exceed $285,574. The contract is funded from FY 2013 Transportation Development Act 4.0 operating funds. COMMITTEE REVIEW: None STAFF CONTACT: David Murphy, Chief Operations Officer Phone: 760/ April 4,

15 AWARD CONTRACT OS FOR BANKING SERVICES Agenda Item # 3 Time Sensitive X Consent X STAFF RECOMMENDATION: Authorize the Executive Director to award contract OS for banking services to Bank of America Merrill Lynch for a five-year term. BACKGROUND INFORMATION: NCTD currently uses Bank of America Merrill Lynch for banking services. These services include a general checking account; a payroll account; and subdepository accounts established for depositing pass and fare revenues collected at transit centers, fareboxes, and ticket vending machines, as well as processing currency and coin deliveries. These services also include two money market accounts, which hold funds received in advance for the San Diego Quiet Zone project and Proposition 1B grant funds. In addition, Bank of America Merrill Lynch provides the District with credit cards used for incidental purchases and travel. In March 2003, NCTD contracted with Bank of America Merrill Lynch to provide banking services for a five-year period. An option to extend the contract for another five years was executed in March 2008, with an expiration date of April 16, Request for Proposals (RFP) OS for the procurement of banking services was advertised and distributed to 15 banking institutions. NCTD received proposals from Bank of America Merrill Lynch and J.P. Morgan. A proposal evaluation team composed of staff from the Finance Division, including the Chief Financial Officer, reviewed and evaluated the proposals based on the criteria of the RFP. The evaluation team has determined that the proposal submitted by Bank of America Merrill Lynch offers the most comprehensive banking services as the overall best value to the District. Staff recommend that the Board authorize the Executive Director to award a banking services contract to Bank of America Merrill Lynch for a term of five years. April 4,

16 ATTACHMENT: None BUSINESS PLAN: Goal/Strategic Direction: Improve Financial Health Initiative: FH1 Effective Fiscal Management/Contract Management FISCAL IMPACT: The fiscal impact of this staff report is net revenue of $192,000 over a five-year contract. Interest earned on account balances will be budgeted and recorded as District revenue, which is currently estimated at $6,500 to $8,300 per month based on an interest return rate of 0.50%. Charges paid by the District will be budgeted for each of the fiscal years of the contract as operating expense. Account service charges will be based on the level of activity, which are currently estimated at approximately $3,300 per month. COMMITTEE REVIEW: None STAFF CONTACT: Ryan Bailey, Chief Financial Officer rbailey@nctd.org Phone: 760/ April 4,

17 EASEMENT AMENDMENT FOR THE CITY OF OCEANSIDE COASTAL RAIL TRAIL Agenda Item # 4 Time Sensitive X Consent X STAFF RECOMMENDATION: Authorize the Executive Director to execute all necessary and related documents to amend the existing easement with the City of Oceanside for the Coastal Rail Trail, increasing the total easement area to 61,364 square feet. BACKGROUND INFORMATION: On January 19, 2006, the Board authorized a 51,000 square foot easement to the City of Oceanside for the Coastal Rail Trail, as prescribed by Resolution No , which states that the location of the Rail Trail shall be the subject of an exhibit attached to the Easement Agreement between the individual cities and NCTD, which shall be approved by the board. Shortly thereafter, due to lack of funding, the City of Oceanside put the Rail Trail project on hold. On May 28, 2010, and as part of Riding to 2050: San Diego Regional Bicycle Plan, SANDAG assumed responsibility as the lead agency for the Oceanside Coastal Rail Trail project. Funding was approved in April 2011, and SANDAG began to revalidate the environmental documents and update design plans. During the review of the initial detailed cost estimate, the estimated project costs exceeded the project funding. An alternative storm drain system that includes an infiltration ditch and bio-swale was incorporated into the plans to save costs. This change allows storm water to infiltrate into the existing ground and remain on-site, improves water quality, reduces costs, and shortens design and construction schedules. All maintenance costs for the rail trail including the storm drain system are the responsibility of the City of Oceanside. The drainage design changes that have been reviewed by NCTD require an increase of 10,364 square feet to the current easement area to accommodate the infiltration ditch and bio-swale. April 4,

18 Staff recommend that the Board authorized the Executive Director to amend the existing easement to increase the easement area to accommodate for the design changes in support of the Coastal Rail Trail project. ATTACHMENT: 4A Example of Easement Amendment BUSINESS PLAN: Goal/Strategic Direction: Community Partnerships Initiative: CP1 Proactively Relate to Public Agencies FISCAL IMPACT: This staff report has no fiscal impact. As approved by the Board on November 20, 1997, any identified Coastal Rail Trail resolutions will be fiscally neutral to NCTD. The original easement and this amendment are provided at no cost. COMMITTEE REVIEW: None STAFF CONTACT: Reed Caldwell, Chief Development Officer Phone: 760/ April 4,

19 STATE LOBBYING SERVICES, RFP13036-OS Agenda Item # 5 Time Sensitive Consent X STAFF RECOMMENDATION: Authorize the Executive Director to award a lobbying services contract to Townsend Public Affairs for state lobbying services for a three-year period. BACKGROUND INFORMATION: NCTD was represented at the state level by Smith, Watts & Martinez beginning in January 2009 in a shared contract with San Diego Metropolitan Transit System (MTS). In December 2012, Smith, Watts & Martinez ended their relationship with NCTD due to a conflict of interest with another client. Therefore, NCTD has been without state lobbying services since January 1, ATTACHMENT: None A request for proposals (RFP) was issued and the scope of work included both state and federal lobbying services. The RFP allowed proposals to be submitted for one or both of the services. The evaluation panel selected Townsend Public Affairs as the firm offering the overall best value for state lobbying services but has not concluded the evaluation process for the federal lobbying services. A recommendation for award of federal lobbying services will be brought to the Board upon completion of the evaluation process. Staff recommend that the Board authorize the Executive Director to award a contract to Townsend Public Affairs for state lobbying services at the fixed monthly fee of $5,000 for the three-year contract period and authorize the Executive Director to exercise one or both of the option years if the negotiated cost does not exceed $60,000 for each year. April 4,

20 BUSINESS PLAN: Goal/Strategic Direction: Strategically Focus Intergovernmental and Legislative Relations Initiative: ILR2 Increase NCTD Profile with Federal/State/Regional Agencies FISCAL IMPACT: The fiscal impact of this staff report is $180,000. The lobbying services will be funded within the operating budget in account , 4, and 6. The FY 2013 operating budget has sufficient funding to cover the $15,000 of expense through the end of the current fiscal year. Future fiscal years will have sufficient funds budgeted to cover the annual cost of $60,000. COMMITTEE REVIEW: None STAFF CONTACT: Bridget Hennessey, Chief of Staff/Intergovernmental Affairs Officer Phone: 760/ April 4,

21 2013 LEGISLATIVE AGENDA Agenda Item # 6 Time Sensitive Consent X STAFF RECOMMENDATION: BACKGROUND INFORMATION: Approve the 2013 legislative agenda. Annually, the NCTD Board of Directors adopts a legislative agenda that establishes goals and priorities for that calendar year. The legislative and policy agenda is dynamic and reflects the best information available at the time. The agenda is a living document that provides direction and may be modified at any time per Board directive. Staff recommend that the Board approve the 2013 legislative agenda. ATTACHMENT: 6A 2013 Legislative Agenda BUSINESS PLAN: Goal/Strategic Direction: Strategically Focus Intergovernmental & Legislative Relations FISCAL IMPACT: None COMMITTEE REVIEW: None Initiative: ILR2 Increase NCTD Profile with Federal/State/Regional Agencies STAFF CONTACT: Bridget Hennessey, Chief of Staff/Intergovernmental Affairs Officer bhennessey@nctd.org Phone: 760/ April 4,

22 FY 2014 BUDGET ASSUMPTIONS Agenda Item # 7 Time Sensitive X Consent STAFF RECOMMENDATION: BACKGROUND INFORMATION: Receive the FY 2014 budget assumptions presentation, provide guidance on the assumptions, and approve the use of the assumptions for preparing the FY 2014 budget that will be presented to the Board on May 16, NCTD prepares its budgets based on NCTD s Policy No. 17, Budget Development. The budget is prepared on an accrual basis except for depreciation expense where total revenues equal or exceed total expenses to support service, operations, and capital decisions. NCTD engages staff and Board members to identify significant budget issues, focus on projected and anticipated revenues and expenses, integrate business capital needs into the capital program that would focus on maintaining an adequate level of capital investment, and implement effective financial analysis, prioritization, and performance-based budgeting. The objective of this presentation is to provide the framework for the FY 2014 operating budget for the following items: Boardings (Ridership) Revenues Expenses Planned Capital Improvement Program (CIP) Specific components of the budget assumptions include the following: Ridership. Ridership is planned to increase year over year for BREEZE, COASTER, and SPRINTER due to a planned 3% increase in BREEZE service levels. LIFT is assumed to increase 8% based on FY 2013 trends. FLEX is assumed to increase 14% as a result of the implementation of route 374 (Encinitas/Solana Beach) in FY 2013 and a 6% increase in service levels planned for FY Fare Revenues. Fare revenues will be based on planned ridership for FY 2014 and the fare revenue per rider for each mode. There are no planned April 4,

23 fare increases for FY 2014; fare revenue per rider will be based on FY 2013 trend of $1.49 average per boarding. Auxiliary Transportation Revenues. No planned increases. Non-Transportation Revenues. No planned increases. Local Cash Grants. TDA and TransNet funds will be based on SANDAG s approved FY 2014 Transportation Development Act Apportionment and Claims Schedules using the mid-range estimates. State Cash Grants. State Transportation (STA) funds will be based on the California State Controller s estimates, with a planned decrease of $0.6 million. FY 2013 s budget was $6.4 million. Federal Cash Grants. Federal 5307 (Urbanized Area) and 5337 (State of Good Repair), 5339 (Bus and Bus Facility), 5311 (Rural Area Program) and 5316 (JARC) and 5317 (New Freedom) are estimated at $742,000 less than FY 2013 s budget. Allocations will be higher in FY 2014; however, FY 2013 included a one-time discretionary grant of $4.6 million under Salaries and Wages. Budget assumptions include a planned staffing net increase of 8 ½ full-time equivalents (FTEs). Planned reduction of professional services due to the hiring of 1 General Counsel and 2 Information Systems Network Engineers; 5 new staff for Capital Projects and a net reduction of ½ operating position. Total FTE headcount will increase from 119 to Capital FTEs will increase from 9.30 to Benefits. Payroll taxes will increase due to the Social Security wage base limit increasing from $110,100 to $113,700, or 3.27%. PERS retirement employer contributions will increase from 5.922% to % based on the CalPERS Actuarial Valuation dated June 30, 2011; however, employee contributions will offset some of the costs. Employees will contribute 2.34% for the first half of the fiscal year and 4.67% for the second half. The 401(a) retirement contribution that was implemented in the second half of FY 2013 contributes 50% of employee deferrals up to 8% of salary. Effective July 1, 2013, medical insurance contribution by NCTD is planned to increase 10% for employee coverage, 25% for employee plus one, 30% for family and 5% if the benefit is waived. Workers compensation insurance is planned to decrease as a result of the prior years claims accrual based on the actuarial study completed by Bickmore on November 16, As a result, only new claims are budgeted. No planned increase for the retiree s health insurance (OPEB). Purchased Transportation. Purchased transportation includes costs for operations, vehicle maintenance, non-vehicle maintenance, and administration. The budget framework includes planned contract escalations and increases due to increased service levels for BREEZE and FLEX. April 4,

24 Professional Services. The framework includes services for legal, engineering, security, financial, marketing, promotions, construction outreach, web design, and other. Materials and Supplies. This category is primarily fuel and will be based on conservative estimates using the U.S. Energy Information Administration s estimates for FY Other Costs. Utilities and casualty and liability costs are assumed to increase at 2%. Taxes are based on fuel costs. Lease and rental costs are based on lease and rental agreements. Interest expense is based on the Certificates of Participation 2004 Series A debt. Miscellaneous Expense. This category includes advertising and promotion, dues and subscriptions, travel, meeting, and other. Expense Reimbursements. These costs are primarily costs that have been billed to entities that do work on or around NCTD s rails and allocations to COASTER and SPRINTER for use of the Coastal and Inland right-of-ways. Planned CIP. Planned investment of $27.3 million primarily invested in the Los Penasquitos Bridges ($13.3 million) to complete the funding for the replacement of three bridges at a total cost of $22.2 million and 10 compressed natural gas (CNG) buses ($5.1 million). Contingency. NCTD will budget a contingency of $1.0 million to respond to adverse financial and economic conditions that could negatively impact NCTD s financial health. Based on the foregoing budget framework assumptions, staff recommend that the Board provide guidance and approve using these assumptions to prepare the FY 2014 draft budget to be received by the Board on May 16, ATTACHMENT: 7A FY 2014 Budget Assumptions BUSINESS PLAN: Goal/Strategic Direction: Improve Financial Health FISCAL IMPACT: None COMMITTEE REVIEW: None Initiative: FF1 Effective Fiscal Management STAFF CONTACT: Ryan Bailey, Chief Financial Officer rbailey@nctd.org Phone: 760/ April 4,

25 REVISED Agenda Item # 8 AMENDED LOSSAN JOINT POWERS AGREEMENT Time Sensitive Consent STAFF RECOMMENDATION: 1. Adopt Resolution (Attachment 8B) approving the LOSSAN amended Joint Powers Agreement (JPA) in substantially the same form as Attachment 8A. 2. Approve the MOU that establishes the voting structure for San Diego County in substantially the same form as Attachment 8C. BACKGROUND INFORMATION: On March 21, 2013, the NCTD Board voted to reconsider the amended JPA that incorporates the amendments requested by MTS and additional language that would give each of the member agencies in San Diego County (NCTD, the San Diego Metropolitan Transit System (MTS), and the San Diego Association of Governments (SANDAG)) a vote on the LOSSAN Board. On March 22, 2013, the LOSSAN Board met, and NCTD made the request for the amendment to the voting structure. The LOSSAN Board asked that the LOSSAN member CEOs consider this request and come back with draft amended language at the April 17, 2013, LOSSAN Board Meeting. The LOSSAN CEOs met on March 28, 2013, and agreed to allow NCTD, MTS and SANDAG to each have a vote on the LOSSAN Board with a total of 2 votes for the region. The CEOs agreed that San Diego County should have a separate agreement to establish the voting structure. NCTD, MTS and SANDAG have reached a separate agreement (Attachment 8C) that establishes that each agency will have a two-thirds vote on the LOSSAN Board. This agreement, along with some amendments to the LOSSAN JPA, allows each of the San Diego member agencies to cast votes separately in high priority votes that require a supermajority. According to the LOSSAN JPA April 4,

26 and draft bylaws, a supermajority vote requires eight affirmative votes of the voting membership of the governing Board which includes at least one vote of the voting members from each of the four LOSSAN regions. Staff recommends that the Board: 1. Adopt Resolution (Attachment 8B) approving the LOSSAN amended Joint Powers Agreement (JPA) in substantially the same form as Attachment 8A. 2. Approve the MOU that establishes the voting structure for San Diego County in substantially the same form as Attachment 8C. Additional background information is as follows: At the April 21, 2011, NCTD Board meeting, staff briefed the Board on discussions among LOSSAN member agencies regarding the potential development of a JPA to control intercity rail services along the LOSSAN corridor. At that time, the Board adopted key principles to protect NCTD s interests as a rail owner and operator on the LOSSAN corridor. On March 30, 2012, the LOSSAN Board voted to move forward with draft legislation that would enable LOSSAN to take over intercity rail on the corridor. NCTD voted to move forward with this legislation while indicating reservations about the legislation and an expectation that the final legislation meet the key principles adopted by the Board. In January 2012, the LOSSAN Board voted to approve the introduction of a spot bill and unanimously approved draft legislative language at their March 2012 meeting detailing institutional changes and, specifically, authorization to transfer the authority for Amtrak s Pacific Surfliner intercity service from Caltrans to the LOSSAN agency. This language was patterned after SB 457 (Kelly-1996), which set the ground work for the Capital Corridor Joint Powers Authority (CCJPA) in northern California. Senator Alex Padilla (D- 20th) agreed to be the author. At the June 21, 2012, NCTD Board meeting, the Board took an opposed unless amended position on SB The Board expressed ongoing concerns regarding funding. On August 30, 2012, both the Assembly and Senate passed SB The Governor approved SB 1225 on September 29, 2012, and it became effective on January 1, At the October 15, 2012, LOSSAN Board of Directors meeting, the Board approved the Amended JPA for distribution to our member agencies for their approval. April 4,

27 On November 15, 2012, the NCTD Board of Directors voted to oppose the amended LOSSAN JPA. The Board authorized the Executive Director to express NCTD s concerns on the amended LOSSAN JPA to LOSSAN. On January 17, 2013, MTS voted to approve the amended LOSSAN JPA with the request for additional amendments. On March 21, 2013, the NCTD Board voted to request the inclusion of the MTS amendments and one additional amendment that would provide NCTD, MTS, and SANDAG each with a vote on the LOSSAN Board. ATTACHMENT: 8A Amended JPA 8B Resolution C - Draft MOU of voting structure for San Diego County BUSINESS PLAN: Goal/Strategic Direction: N/A FISCAL IMPACT: None COMMITTEE REVIEW: None Initiative: N/A STAFF CONTACT: Bridget Hennessey, Chief of Staff/Intergovernmental Affairs Officer bhennessey@nctd.org Phone: 760/ April 4,

28 April 4, 2013 To: From: Subject: NCTD Board Members Clerk of the Board POSTING OF BOARD AGENDA In Compliance with the Ralph M. Brown Act, As Amended, the following information is provided. The Agenda for this meeting of the Board was posted as follows: Meeting Date & Time: Posted At: Date & Time of Posting: Posted By: April 4, 2013; 2:00 p.m. 810 Mission Avenue, Oceanside, CA March 29, 2013; 5:00 p.m. Clerk of the Board April 4,

29 April 4,