Agenda. Thursday, June 21, Regular Meeting: 2:00 P.M. Location: NCTD Administrative Offices, 810 Mission Avenue, Oceanside, CA MISSION

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1 810 Mission Avenue Oceanside, CA Agenda (760) (760) (fax) Thursday, June 21, 2018 Regular Meeting: 2:00 P.M. Location: NCTD Administrative Offices, 810 Mission Avenue, Oceanside, CA BOARD OF DIRECTORS Rebecca Jones Vice Mayor, City of San Marcos Board Chair John J. Aguilera Deputy Mayor, City of Vista Board Vice-Chair Mark Packard Councilmember, City of Carlsbad MISSION North County Transit District s mission is to deliver safe, convenient, reliable and userfriendly public transportation services. Dave Druker Deputy Mayor, City of Del Mar Tony Kranz Councilmember, City of Encinitas Ed Gallo Councilmember, City of Escondido VISION Our vision is to build an integrated transit system that enables our customers to travel easily and efficiently throughout our growing region. Jack Feller Councilmember, City of Oceanside Bill Horn Supervisor, County of San Diego Jewel Edson Councilmember, City of Solana Beach EXECUTIVE DIRECTOR Matthew O. Tucker GENERAL COUNSEL Lori A. Winfree For individuals with disabilities, NCTD 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. NCTD will make every attempt to accommodate requests that do not give 72-hour notice. Please contact the Clerk of the Board at (760) 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: 877/ English or 877/ Spanish. 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 at the office of the Clerk of the Board located at 810 Mission Avenue, Oceanside, CA 92054, during normal business hours. 1

2 CALL TO ORDER REGULAR MEETING BEGINNING AT 2:00 PM ROLL CALL OF BOARD MEMBERS PLEDGE OF ALLEGIANCE TO THE AMERICAN FLAG SAFETY BRIEF & EVACUATION PROCEDURES Anthony Flores, Clerk of the Board 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. A. MINUTES Approve Minutes for NCTD s Regular Board Meeting of May 17, 2018 (S) (Anthony Flores, Clerk of the Board) B. CONSENT ITEMS 1 8 Items reviewed and recommended for approval by the Executive Committee, Marketing, Service Planning and Business Development Committee (MSPBD), Performance, Administration and Finance Committee (PAF), Staff (S), Board (B) or Board Workshop (W) 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 1. Receive Monthly Intergovernmental Affairs Report (S) (Attachments 1A and 1B) (Kristina Svensk, Principal Project Planner) 2. Receive Monthly Transit Operations Performance Report (S) (Attachment 2A) (Damon Blythe, Chief Operations Officer Transit Planning & Bus Operations) 3. Adopt Amended and Restated Resolution No Authorizing the Executive Director and/or His Designees to Execute the Certifications and Assurances and Authorized Agent Form for the FY Low Carbon Transit Operations Program for the Purchase of Six (6) Replacement Zero Emission Buses (S) (Attachment 3A) (Eun Park-Lynch, Interim Chief Financial Officer) 4. Adopt Resolution No Authorizing the Executive Director and/or His Designees to Take any and all Actions Necessary on Behalf of NCTD, for the Purpose of Obtaining FY2019 Financial Assistance Through the State of California Department of Transportation as Authorized Under 49 CFR 5311/Fixing America s Surface Transportation Act 3007(S) (Attachment 4A) (Eun Park-Lynch, Interim Chief Financial Officer) 2

3 5. Approve Unilateral Supplemental Agreement No. 17 to Agreement No With First Transit, Inc. for Final Close-Out of Agreement for Operations and Maintenance of Transit Services (S) (Damon Blythe, Chief Operations Officer Transit Planning & Bus Operations) 6. Authorize the Executive Director to Execute Task Order No. 5 to Agreement No With TRC Solutions, Inc. for the Sixth Year of Non-Traditional Phase II Municipal Separate Storm Sewer System (MS4) General Permit Compliance Efforts (S) (Lori A. Winfree, General Counsel) 7. Ratify Supplemental Agreement No. 04 to Agreement No With Bank of America, N.A. for Banking Services (S) (Eun Park-Lynch, Interim Chief Financial Officer) 8. Receive Quarterly Transit Operations Performance Report (S) (Attachment 8A) (Damon Blythe, Chief Operations Officer Transit Planning & Bus Operations) C. OTHER BUSINESS ITEMS 9 AND Conduct Public Hearing and Adopt FY2019 Operating Budget and FY2019 FY2023 Capital Improvement Program and Approve FY2019 FY2028 Service Implementation Plan (S) (Eun Park-Lynch, Interim Chief Financial Officer) 10. Authorize the Executive Director to Execute Agreement No for the Purchase of Charger Locomotives Pursuant to Multi-State Locomotive Master Agreement No DPIT From Siemens Mobility, Inc. and Take Other Actions Necessary to Advance the Procurement (S) (Attachments 10A 10E) (Don Filippi, Chief Operations Officer Rail) D. INFORMATIONAL ITEMS 11 AND Receive Update on Assembly Bill 1069-Local Government: Taxicab Transportation Services (S) (Lori A. Winfree, General Counsel) 12. Receive Update on Amtrak Positive Train Control Implementation (S) (Attachment 12A) (Eric Roe, Deputy Chief Operations Officer Rail) 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. ADJOURNMENT CERTIFICATIONS AND RULES (FOR BOARD AND PUBLIC INFORMATION) Posting of Board Agenda (Page 5) Rules for Public Speakers at meetings of the North County Transit District (Page 6) Upcoming Meetings: Regular Board Meeting: July 19, 2018 at 2:00 p.m. All Regular Board and Committee Meetings will be held at NCTD Administrative Offices, 810 Mission Ave., Oceanside CA, unless otherwise provided on public notice. 3

4 MAP OF NORTH COUNTY TRANSIT DISTRICT OFFICES The NCTD Board Chambers is located at NCTD Administrative Offices, 810 Mission Avenue, Oceanside, CA and is accessible by the COASTER (NCTD Commuter Rail), SPRINTER (NCTD Light Rail), and the BREEZE (NCTD Bus). Please log onto to check our current routes and schedules, or call COMMUTE. 4

5 June 15, 2018 To: From: Subject: North County Transit District 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: Regular Meeting: Posted At: Posted Online At: Date & Time of Posting: Posted By: June 21, 2018 at 2:00 p.m. 810 Mission Avenue, Oceanside, CA June 15, 2018 at 5:00 p.m. Anthony Flores, Clerk of the Board 5

6 Rules for Public Speakers at Meetings of the North County Transit District Per Board policy, all public communications at meetings of the North County Transit District shall be made and received in accordance with the following procedures: 1. COMMENTS NOT ON AGENDA A. Total time limit all speakers: Beginning of meeting: Fifteen (15) minutes End of meeting: No time limit. B. Time limit per speaker per meeting: Three (3) minutes, with no donation of time allowed. C. Priority: First come, first served. All speaker slips will be numbered as the Clerk of the Board receives them. Those not allowed to speak at the beginning of the meeting due to limit stated above, will be called at the end of the meeting. D. Order on agenda: Items will be heard at the beginning of the meeting and if the time limit stated in Paragraph A is exhausted, those who filled out a speaker slip and have not yet spoken, will be given an opportunity to speak at the end of the meeting under Remaining Public Communications. E. Comments not addressing items on the agenda are out of order. 2. TIME LIMITS FOR ADDRESSING MATTERS ON THE AGENDA A. Total time limit: None. B. Time limit per speaker: Three (3) minutes, with one donation of three minutes, for a maximum of six minutes. C. These rules apply to both public hearing and non-public hearing items listed on the agenda. D. Comments made not germane to the subject matter of the agenda item being considered are out of order. 3. CUTOFF FOR TURNING IN SPEAKER SLIPS A. Speakers wishing to speak to an item on the Board Agenda must submit a speaker slip to the Clerk of the Board before that agenda item is called. Speaker slips will be available at the meeting. B. Speakers turning in slips after discussion begins on an item will be heard at the end of the meeting under Remaining Public Communications. 4. MODIFICATION OF RULES BY CHAIR A. The Board Chair may, in his or her absolute discretion, relax the requirements of these rules. However, a decision of the Chair to do so in one instance shall not be deemed a waiver of the rules as to any other instance or matter. 6

7 MINUTES OF THE REGULAR MEETING OF THE NORTH COUNTY TRANSIT DISTRICT BOARD OF DIRECTORS HELD MAY 17, 2018 CALL TO ORDER Rebecca Jones, Board Chair, called the regular meeting to order at 2:00 p.m. ROLL CALL OF BOARD MEMBERS 1. Rebecca Jones (City of San Marcos); 2. John Aguilera (City of Vista); 3. Mark Packard (City of Carlsbad); 4. Dave Druker (City of Del Mar); 5. Tony Kranz (City of Encinitas); 6. Ed Gallo (City of Escondido); 7. Jack Feller (City of Oceanside); 8. Bill Horn (County of San Diego), arrived at 2:12 pm; 9. Jewel Edson (City of Solana Beach). PLEDGE OF ALLEGIANCE TO THE AMERICAN FLAG Board Vice-Chair Aguilera led the Pledge of Allegiance to the American Flag. SAFETY BRIEF Anthony Flores, Clerk of the Board, provided a presentation on emergency evacuation procedures. CHANGES TO THE AGENDA Anthony Flores, Clerk of the Board, informed the Board that Agenda Item 4 was pulled by staff and moved to the end of the agenda where staff provided a brief presentation on the item. PUBLIC COMMUNICATIONS Mr. Glenn Leider, public speaker, stated that he was pleased with the additional signage posted at Plaza Camino Real. Mr. Leider also informed the Board that the MTS regional map completely left out the information for North County. Mr. Leider stated that there is approximately, five (5) months before the next service change and requested NCTD re-examine its current system map to include a scale map.

8 APPROVAL OF MINUTES OF THE APRIL 19, 2018 SPECIAL AND REGULAR BOARD MEETINGS ON THE MOTION OF BOARD MEMBER JEWEL EDSON TO APPROVE THE MINUTES OF APRIL 19, 2018, SECONDED BY BOARD VICE-CHAIR AGUILERA. AYES: JONES, PACKARD, KRANZ, EDSON, FELLER, GALLO, AGUILERA. NOES: NONE ABSENT: HORN. ABSTAIN: DRUKER. MOTION CARRIES. CONSENT ITEMS 1 3 AND 5 11: 1. Receive Monthly Transit Operations Performance Report 2. Receive the Performance, administration, and Finance Committee Chair Report 3. Award Agreement No to PlanetBids, Inc. for E-Procurement Software System 5. Authorize the Executive Director to Execute Task Order Agreement No. 13 to Agreement No With Bombardier Transportation (Holdings) USA, Inc. for Penal Code 832 Training Signal 6. Authorize the Executive Director to Execute Supplemental Agreement No. 01 to Agreement No with HNTB Corporations for Continued Positive Train Control Program management in an amount not-to-exceed $2,431, Award Agreement No to ACM Lighting Services for Light Pole Replacements 8. Authorize the Executive Director to Execute Amendment No. 13 to Fund Transfer Agreement Between the San Diego Metropolitan Transit System and NCTD for Annual Shared Costs of the Regional Transit Management System Services for Motorola Solutions and Xerox Transport Solutions Contracts 9. Award Agreement No to IBI Group to Conduct a Land Use and Transit Integration Study 10. Approve the 2018 Update of the Title VI Program for North County Transit District 11. Receive Quarterly Investment Report Q3FY18 ON THE MOTION OF BOARD MEMBER DAVE DRUKER TO APPROVE CONSENT ITEMS 1 THROUGH 3 AND 5 THROUGH 11, SECONDED BY BOARD MEMBER JACK FELLER. AYES: JONES, PACKARD, DRUKER, KRANZ, EDSON, GALLO, FELLER, AGUILERA NOES: NONE ABSENT: HORN ABSTAIN: NONE MOTION CARRIES. Page 2 of 7

9 OTHER BUSINESS 12. Approve Fourth Amended Employment Agreement Between NCTD and General Counsel Ms. Karen Tucholski, Chief Administrative Officer, briefed the Board regarding the process for General Counsel s annual performance evaluation. She further stated that details regarding this year s evaluation are listed in the staff report and recommended that the Board of Directors approve the Fourth Amended Employment Agreement between North County Transit District and General Counsel based on results of the annual performance evaluation conducted by the Board of Directors to address compensation and update other terms and conditions of the agreement. ON THE MOTION OF BOARD MEMBER MARK PACKARD TO APPROVE AGENDA ITEM 12, SECONDED BY BOARD VICE-CHAIR AGUILERA. AYES: JONES, PACKARD, DRUKER, KRANZ, EDSON, FELLER, GALLO, HORN, AGUILERA NOES: NONE ABSENT: NONE ABSTAIN: NONE MOTION CARRIES. INFORMATIONAL ITEMS Receive Update Regarding the Draft Proposed FY2019 Operating Budget Ms. Luz Cofresí-Howe, Chief Financial Officer, provided the Board an update on the Draft Proposed FY2019 Operating Budget and key dates leading up to the Public Hearing scheduled for June 21, Ms. Cofresí-Howe reviewed core concepts of the upcoming budget and provided anticipated funding updates. Ms. Cofresí-Howe gave an expenditure overview and discussed the budget deliverables, sources of funding, and other budget specific topics. Board Member Ed Gallo asked about SANDAG involvement in fare policy. Matthew O. Tucker, Executive Director, provided the Board a policy explanation. Board Member Gallo asked about train attendants, pension obligations, and financial advisory services. Ms. Cofresí-Howe noted that the train attendants were added in FY2018. She then informed the Board how pension payments are captured in the budget and explained how external advisory services will be utilized for funding review relative to major project planning. Board Member Jewel Edson asked about why there was an estimated rise in insurance costs. Ms. Cofresí-Howe explained that it is an estimate and that we are pending final figures from the insurance carriers as they are likely to pass on state-specific risk increases (i.e. recent fires). Additionally, Board Member Edson asked for clarification on a figure provided for estimated roof assessment repairs. Ms. Cofresí-Howe confirmed that the figure on page 7 of the presentation was incorrect and is estimated to be $350K as included in the FY19 Capital Improvement Project. Finally, Board Member Edson sought explanation as to the increase to rail engineering staffing. Page 3 of 7

10 Ms. Cofresí-Howe explained that the noted increase is due to the consolidation and creation of this new department but noted it does not reflect new headcount overall. Board Member Jack Feller asked about the partial (.5) FTE measurement. Ms. Cofresí-Howe stated that NCTD s workforce includes an on-call technical writer. Board Member Dave Druker inquired about the accuracy of projected revenue when comparing the similarities between FY18 and FY19. Mr. Tucker highlighted the lack of official numbers for the Federal Register of the adopted budget, and the likely possibility of the projected revenue increasing once received. Ms. Cofresí-Howe stated the increase is intended to be applied to capital improvement projects. 14. Receive Quarterly Safety & Security Report Q3FY18 Sean Loofbourrow, Chief of Safety & Security, provided the Board an update on the trends and statistics NCTD has observed in Quarter 3 (January through March). Mr. Loofbourrow reviewed safety (accidents, etc.) and crime statistics and detailed how local law enforcement is working with NCTD to address current challenges. Board Vice-Chair Aguilera inquired about the current approach to response for fare evasion. Mr. Loofbourrow clarified that it is NCTD s belief that much of the issue occurs with infrequent riders unaware of the validation tapping procedure. It was noted that there very well may be riders purposely evading the fare, and Mr. Loofbourrow stated that NCTD expects that may decline with the increased presence of local law enforcement, train attendants, and conductors. Board Chair Rebecca Jones asked about NCTD s outreach efforts to mitigate fair evasion. Mr. Loofbourrow stated that employees have received, and will continue to receive, training to deliver consistent messages to riders regarding trespassing and the proper use of the fare system; NCTD has posted additional signage at stations; public outreach is done at community events; and there is the current law enforcement presence. Board Member Jewel Edson inquired about the frequency of vehicle thefts at NCTD properties. Mr. Loofbourrow described the issues as separate and unrelated occurrences which took place on multiple NCTD properties over the period from January through March Board Member Bill Horn requested clarification on the location of burglaries. Mr. Loofbourrow explained that the data encompasses all NCTD property, including stations, lots, and individual modes of transportation. Board Member Ed Gallo inquired about the dates of two fatalities due to strikes on the SPRINTER line. Mr. Loofbourrow provided the incident dates as August 14, 2015 and July 28, Board Member Tony Kranz requested details regarding the plans to install fencing on the La Costa Avenue/Leucadia (Encinitas) stretch of right-of-way. Board Member Kranz expressed his concern on the affect he believes it will have on the citizens accustomed to pedestrian beach access across the tracks. Mr. Loofbourrow informed the Board that the District s intent is to work Page 4 of 7

11 with individual jurisdictions to find the best way to mitigate illegal crossings to ensure the safety of the public. Board Member Jack Feller stated that he feels the cities have a significant responsibility in taking steps to reduce trespassing and referenced the underpass in Oceanside. 15. Receive Quarterly PTC Report (Q3FY18) Eric Roe, Deputy Chief Operations Officer Rail, provided an update on the implementation progress of Positive Train Control (PTC) for NCTD and the rail providers sharing NCTD tracks, including current equipment challenges. He stated that NCTD is in Revenue Service Demonstration for COASTER vehicles, and that the Federal Railroad Administration (FRA) has listed NCTD as number 2 in the country for readiness based on their standards. Mr. Roe advised the Board that the NCTD Safety Plan was submitted but has yet to be approved by the FRA. He stated that the FRA has requested an extension for completion of their review. Mr. Roe provided the Board an update on Santa Fe Depot where NCTD is having GPS issues due to reflective bounce-back off buildings. He noted that NCTD is working diligently to find a solution that will not interfere with other systems (i.e. air traffic control). Mr. Roe also provided the Board an update on the status of NCTD s tenant railroads regarding their PTC readiness. Board Member Ed Gallo shared his concern that Amtrak is not as far along in PTC implementation as NCTD and Metrolink. Board Vice-Chair John Aguilera requested clarification on the two locomotive units marked as blacklisted for PTC. Mr. Roe responded that NCTD is working with manufacturers and other railroads to resolve incompatibility anomalies for two units (2101, 2102). Board Member Dave Druker asked if NCTD has reached out to other metropolitan areas to see how the GPS issue may be resolved. Mr. Roe explained that many cities, such as New York, may not encounter similar issues as they run their tracks underground, removing the issue of building interference with their ability to use GPS repeaters. He noted that if NCTD implemented similar systems, it could affect air traffic and the military. Mr. Roe also noted that NCTD is working with BNSF and the Seattle Sounder as they are experiencing the same reflection GPS issue. Mr. Druker also inquired about the status of, and interoperability with, Metrolink, BNSF, Pacific Sun, and Amtrak. Mr. Roe explained the timeline of the hosting and approval process. Board Member Jewel Edson inquired about the status and relationship between Pacific Sun Railroad and BNSF. Mr. Roe explained that while BNSF is conditionally certified, their sub, Pacific Sun, still needs to work with NCTD toward interoperability. 16. Receive Monthly Intergovernmental Affairs Report Kristina Svensk, Principal Project Planner, provided an update on AB3177 which authorizes NCTD to operate with increased contracting authority. Ms. Svensk confirmed it was approved in Assembly on March 16, 2018 to move on to the Senate. Page 5 of 7

12 Ms. Svensk also reviewed the approval status of AB2982 (adds an advisory, non-voting, representative from the city of San Diego to the Board of Directors) the bill was approved in Assembly on May 14, 2018 and has advanced to the Senate. Ms. Svensk informed the Board that NCTD was awarded TIRCP and grant funds from SB1 and the Greenhouse Gas Emission Reduction Fund, to be used for signal optimization, capitalized maintenance activities, on-time performance improvements, right-of-way fencing, study of maintenance and layover facilities, locomotive replacement, planning studies, zero-emission buses etc. Ms. Svensk also noted that NCTD is currently working on three more applications to seek funding for vehicles and the Del Mar Bluffs stabilization project. Board Member John Aguilera stated that he spoke with Assembly Member Todd Gloria and he stated he was interested in assisting NCTD with support of future endeavors in the San Diego region. AGENDA ITEM 4 REVISED 4. Award an Agreement for the Construction of a New Signal Ms. Jennifer Taylor, Chief Procurement and Contract Administration Officer, informed the Board that Agenda Item No. 4 was pulled from consent due to a protest received just prior to the start of the Board meeting. Ms. Taylor informed the Board that the District revised the recommendation requesting authorization for the Executive Director to award an agreement for construction of a new signal in the vicinity of the Encinitas COASTER Station in an amount notto-exceed $886,864 to the lowest responsive, responsible bidder, subject to resolution of the protest. ON THE MOTION OF BOARD MEMBER ED GALLO TO APPROVE AGENDA ITEM 4, SECONDED BY BOARD MEMBER JACK FELLER. AYES: NOES: ABSENT: ABSTAIN: JONES, PACKARD, DRUKER, KRANZ, EDSON, FELLER, GALLO, HORN, AGUILERA. NONE NONE NONE MOTION CARRIES. EXECUTIVE DIRECTOR S REPORT Mr. Tucker informed the Board of the potential cancellation of the MSPBD Committee scheduled for June 6, Page 6 of 7

13 BOARD MEMBER REPORTS, COMMENTS AND CORRESPONDENCE Board Member Ed Gallo reported he attended the SANDAG Transportation Committee Meeting on behalf of NCTD on April 27, Board Member Gallo also inquired if NCTD was having a special bus for the San Diego County Fair, to which staff responded affirmatively. Board Member Dave Druker stated that he attended the Regional Planning Commission Meeting two weeks ago, where a question arose regarding possible development around the temporary station in Del Mar. Board Member Druker stated he also spoke with Assembly Member Todd Gloria and his likely support for a future Convention Center station stop for COASTER. Board Member Edson informed the Board of the Fiesta Del Sol event happening in Solana Beach. REMAINING PUBLIC COMMUNICATIONS None. ADJOURNMENT The meeting adjourned at 3:05 p.m. Submitted by Anthony Flores, Clerk of the Board for North County Transit District. BOARD CHAIR North County Transit District CERTIFICATION I, Anthony Flores, duly appointed and qualified, Clerk of the Board of the North County Transit District, do hereby certify that the above is a true and correct copy of the Minutes of the Regular Meeting held on May 17, 2018 approved by the Board of Directors of the North County Transit District adopted at a legally convened meeting of the Board of Directors of the North County Transit District held on the 21st day of June CLERK OF THE BOARD North County Transit District 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: 877/ or TTY. Page 7 of 7

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16 Agenda Item # 1 RECEIVE MONTHLY INTERGOVERNMENTAL AFFAIRS REPORT STAFF RECOMMENDATION: BACKGROUND INFORMATION: Time Sensitive: Consent: Receive the Intergovernmental Affairs Report for the reporting period of May Attached are the monthly Intergovernmental Affairs Reports submitted by Townsend Public Affairs. ATTACHMENT: 1A Monthly Legislative Report (Townsend) May B State Legislative Report (Townsend) May 2018 GOAL/STRATEGIC DIRECTION: Strategically Focus Intergovernmental and Legislative Relations Legal, Regulatory, and Policy Compliance FISCAL IMPACT: This staff report has no fiscal impact. COMMITTEE REVIEW: None STAFF CONTACT: Kristina Svensk, Principal Project Planner ksvensk@nctd.org Phone: June 21, 2018 Board Meeting Staff Report No.: SR

17 ATTACHMENT 1A MEMORANDUM To: From: North County Transit District Board of Directors Matthew O. Tucker, Executive Director Luz Cofresí-Howe, Chief Financial Officer Townsend Public Affairs, Inc. Christopher Townsend, President Richard Harmon, Senior Director Date: June 1, 2018 Subject: Monthly Report May 2018 SUMMARY This memorandum is an overview of activities undertaken by Townsend Public Affairs (TPA) over the last month, working on behalf of the North County Transit District, including the following subjects: Legislative Activity and Updates o State Update Legislative Activity State Budget Update Senate Bill 1 Repeal o Tracked Legislation Administrative Action and Updates o Cap and Trade Auction Results o Governor s Appointments Potential Funding Opportunities State Capitol Office 925 L Street Suite 1404 Sacramento, CA Phone (916) Fax (916) Federal Office 600 Pennsylvania SE Suite 207 Washington, DC Phone (202) Fax (202) Central California Office 744 P Street Suite 308 Fresno, CA Phone (949) Fax (949) Southern California Office 1401 Dove Street Suite 330 Newport Beach, CA Phone (949) Fax (949) Northern California Office 300 Frank Ogawa Plaza Suite 204 Oakland, CA Phone (510) Fax (510)

18 LEGISLATIVE ACTIVITY AND UPDATES State Update Legislative Activity In the month of May, the Legislature focused on fiscal-related bills in their respective appropriations committees. Hundreds of bills failed to make it out of their appropriations committees before the deadline on May 25 and are now dead. In addition, June 1 was the deadline for bills to be approved by their house of introduction further screening the number of bills moving forward. The Legislature will now turn their full attention to the budget process. After the Governor released his revised budget proposal at the beginning of the month, the Assembly and the Senate convened a series of budget subcommittee hearings to negotiate specifics of the budget. Once these various budget subcommittees finalized their work, each house approved their own budget proposal. Differences between the Senate and Assembly versions of the budget are currently being consolidated by a conference committee before the final budget is voted on. The final budget agreement must be in print by June 12 to allow the Legislature to pass a budget by the June 15 deadline. On February 16, Assembly Member Rocky Chavez introduced Assembly Bill 3177 for the District. This bill would revise the District s procurement and contracting statutes and align them with regional transportation agency partners. The bill was approved by the full Assembly on May 17. The bill will be heard in the Senate Transportation and Housing Committee in mid-june. So far, there is no opposition to the bill. State Budget Update On May 11, the Governor released his May Revise, an updated starting point for budget negotiations that includes the latest tax revenue numbers. The May Revise includes $137.6 billion in General Fund spending, which represents a $3 billion increase over the Governor s January Budget proposal. As has been the case for the last several budgets, the Governor has focused the increased revenue toward building up the State s reserves, paying down debt, and investing in one-time funding. The May Revise did not propose any new major on-going programs but did maintain the Governor s January proposal to fully fund the State s rainy-day fund, as well as invest nearly $4 billion in one-time spending. Among the new items included in the May Revise, is $359 million in General Fund spending to address issues related to homelessness. The Governor indicated that he views these one-time funds as a bridge in funding until additional funding becomes available through SB 2 (Atkins, 2017) funding, the proposed Housing Bond on the November 2018 ballot, and No Place Like Home Initiative from The May Revise proposal for homelessness funding includes: $250 million for Homelessness Emergency Aid block grant. This funding would be administered through Continuums of Care for cities, counties, or joint powers authorities that declare a local shelter crisis and identify city-county coordination. The grants can be 2

19 used for emergency housing vouchers, rapid rehousing, emergency shelter construction, and use of armories to provide temporary shelters, among other activities. $50 million to the Department of Health Care Services to provide counties with funding for intensive outreach, treatment and services for homeless in need of mental health services. $47 million in increased funding for the CalWORKs Housing Support Program, CalWORKs Homeless Assistance, and the Home Safe Pilot Program. Funds from these programs will help families secure permanent housing, increase temporary assistance to families who are homeless or facing evictions, and provide housing-related support to seniors experiencing homelessness. $10 million increase in funding for the Governor s Office of Emergency Services for domestic violence service providers. $1 million to augment the Homeless Youth and Exploitation Program for homeless and exploited youth shelters that serve unaccompanied minors. Another major proposed use of one-time funding in the May Revise is to address infrastructure needs in the State. The May Revise proposes $2 billion in General Fund spending related to infrastructure and deferred maintenance needs for colleges and universities, courts, flood control, and state facilities. The investment in infrastructure is consistent with the Governor s desire to commit money to one-time uses and not saddle the State with ongoing obligations. The Legislature convened the Conference Committee during the last week of the month with members of the respective budget committees. The Conference Committee is expecting to wrap up its work during the first week of June and present a unified budget proposal to the Governor. Senate Bill 1 Repeal On April 30, proponents of the repeal of SB 1 began submitting signatures to various County elections officials. Proponents are claiming they have collected approximately 940,000 signatures, more than enough to ensure they meet the required 584,000 valid signatures to be placed on the November 2018 ballot. The results of the June Primary Election will be key to the chances of a successful repeal effort in November. Without a Republican candidate for Governor, for example, the proponents will have a difficult time with messaging for the repeal. At this point, however, John Cox the Republican frontrunner is leading in polling ahead of Antonio Villaraigosa in second place. Tracked Legislation Attached is a list of legislation we are currently monitoring, and below are bills of interest to the District, given the benefits or impacts to the District s goals. Much of the current legislation is still in placeholder form, but we continue to monitor as we await final language: Assembly Bill 3177 (Chavez) would revise the District s procurement authority and align it with other regional transportation agencies. This bill has been referred to the Senate Transportation and Housing Committee. 3

20 Assembly Bill 2249 (Cooley) this bill would increase thresholds for the California Uniform Construction Cost Accounting Commission related to informal bid processes. This bill has been referred to the Senate Governance and Finance Committee. Assembly Bill 2982 (Gloria) would add one nonvoting member to the District s Board of Directors from the City Council of the City of San Diego. This bill has been referred to the Senate Transportation and Housing Committee. Senate Bill 477 (Cannella) this bill would authorize extensions of rail corridors for intercity rail services. This bill was held by the Assembly Appropriations Committee. Senate Bill 502 (Portantino) this bill would require each rail transit or commuter train to have an automated external defibrillator. The bill has been referred to the Assembly Transportation Committee. ADMINISTRATIVE ACTION AND UPDATES Cap and Trade Auction Results In May, the California Air Resources Board (CARB) conducted their second Cap and Trade auction of the year. For the fourth auction in a row, all available emission credits were sold. The State expects to receive $700 million from the May 2018 auction. Revenues generated from the Cap and Trade program go toward the Governor s High-Speed Rail project, various transportation improvements, affordable housing, and sustainable community programs. Forty percent of the revenues are available for future appropriation for projects that will reduce greenhouse gas emissions. The Governor has released his draft 2018 Cap and Trade expenditure plan, which outlines his plan for spending revenues in the Greenhouse Gas Reduction Fund. The Governor s draft expenditure plan appropriates nearly $1.3 billion while the Assembly and Senate have asked for an expenditure plan of $1.4 billion and $1.5 billion, respectfully. These differences will need to be worked out before any expenditure plan is passed by the Legislature. The Governor has expressed his preference to approve an expenditure plan as part of the budget process, however it should be noted that a Cap and Trade expenditure plan can be approved at any time during the legislative process. The next Cap and Trade auction will occur in August Governor s Appointments On May 31, Governor Brown appointed Diana Dooley as his Executive Secretary, a role similar to Chief of Staff. Dooley has served as Secretary of the California Health and Human Services Agency since Governor Brown has been without an Executive Secretary since the passing of Nancy McFadden two months ago. 4

21 POTENTIAL FUNDING OPPORTUNITIES Included below is a list of several upcoming grant programs, descriptions and due dates (actual or anticipated): Environmental Enhancement and Mitigation Program (June 20) Projects funded from this program must contribute to mitigation of the environmental effects of transportation facilities. Eligible projects must fit one of the following categories: Urban Forestry projects designed to offset vehicular emissions of carbon dioxide. Resource Lands projects for the acquisition or enhancement of resource lands to mitigate the loss of, or the detriment to, resource lands lying within or near the right-of-way acquired for transportation improvements. Mitigation Projects Beyond the Scope of the Lead Agency responsible for assessing the environmental impact of the proposed transportation improvement. Active Transportation Program (July 30) The Active Transportation Program was created to encourage increased use of active modes of transportation, such as biking and walking. Pursuant to statute, the goals of the Active Transportation Program are to Increase the proportion of trips accomplished by biking and walking, increase the safety and mobility of non-motorized users, enhance public health, including reduction of childhood obesity through the use of programs including, but not limited to, projects eligible for Safe Routes to School Program funding, and ensure that disadvantaged communities fully share in the benefits of the program. Highway Safety Improvement Program (August 31) Funding from the Highway Safety Improvement Program (HSIP) in intended to fund work on any public road or publicly-owned bicycle or pedestrian pathway or trail that improves safety for users. All proposed projects must lead to, and complete, the construction of safety improvements, and be consistent with California s Strategic Highway Safety Plan. Sustainable Transportation Planning Grants (October 18) Successful planning projects are expected to directly benefit the multi-modal transportation system. Sustainable Communities Grants will also improve public health, social equity, environmental justice, and provide other important community benefits. The grant program will fund local and regional multimodal transportation and land use planning projects that further the region s RTP SCS, contribute to the State s GHG reduction targets, and assist in achieving the Caltrans Mission and Program Objectives. Adaptation Planning Grants (October 18) This funding will advance adaptation planning on California s transportation infrastructure, including but not limited to roads, railways, bikeways, trails, bridges, ports, and airports. Funded projects are expected to not only adapt the transportation system to climate change impacts but also to benefit the multimodal transportation system. Applicants who have adaptation planning efforts underway as well as those who have not yet started work are encouraged to apply. 5

22 North County Transit District Legislative Report (6/3/2018) ATTACHMENT 1B AB 1205 AB 1421 AB 1945 (Jones-Sawyer D) Los Angeles County Metropolitan Transportation Authority: contracting. Current Text: Amended: 3/5/2018 html pdf Last Amend: 3/5/2018 Status: 5/16/2018-Read second time. Ordered to third reading. Location: 5/16/2018-S. THIRD READING Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. 1st House 2nd House Conc. Enrolled Vetoed Chaptered Summary: Current law authorizes the Los Angeles County Metropolitan Transportation Authority (LACMTA) to award contracts under certain circumstances to small business enterprises with respect to work that is set aside for competition among certified small business enterprises, as long as price quotations are obtained by LACMTA from 3 or more small business enterprises, and requires LACMTA to report to the Legislature by December 31, 2017, regarding any contracts awarded in this regard. This bill would instead authorize LACMTA to award contracts in this manner as long as it solicits rather than obtains price quotations from 3 or more small business enterprises. The bill would delete the requirement that LACMTA report to the Legislature regarding contracts awarded to small business enterprises in this regard. Organization North County Transit District Position Watch (Dababneh D) Railroads: noise and vibration levels. Current Text: Amended: 3/22/2017 html pdf Last Amend: 3/22/2017 Status: 6/8/2017-Referred to Com. on RLS. (Set for hearing ) (1/23/ Immune to Deadlines according to JR61(f). Deadlines do not apply to bills in a Rules committee.) Location: 6/8/2017-S. RLS. Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. 1st House 2nd House Conc. Enrolled Vetoed Chaptered Summary: Current law creates the State Department of Public Health with various powers and duties.this bill would require the department to conduct a study to determine the noise and vibration levels associated with all railroad lines in the vicinity of residential areas or schools. Organization North County Transit District Position Watch (Garcia, Eduardo D) California Global Warming Solutions Act of 2006: Greenhouse Gas Reduction Fund: investment plan. Current Text: Amended: 5/25/2018 html pdf Last Amend: 5/25/2018 Status: 5/31/2018-In Senate. Read first time. To Com. on RLS. for assignment. Location: 5/31/2018-S. RLS. Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. 1st House 2nd House Conc. Enrolled Vetoed Chaptered Summary: Would require the State Air Resources Board to work with state agencies administering grant programs that allocate moneys from the Greenhouse Gas Reduction Fund to give specified communities preferential points during grant application scoring for programs intended to improve air quality, to include a specified application timeline for programs with competitive application processes, and to allow applicants from the Counties of Imperial and San Diego to include daytime population numbers in grant applications. Organization North County Transit District Position Watch AB 2017 (Chiu D) Public employers: employee organizations. Current Text: Amended: 4/11/2018 html pdf Last Amend: 4/11/2018 Status: 5/3/2018-Referred to Com. on P.E. & R. Location: 5/3/2018-S. P.E. & R. Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. 1st House 2nd House Conc. Enrolled Vetoed Chaptered Page 1/7

23 Summary: Current law prohibits a public employer, as defined, from deterring or discouraging public employees from becoming or remaining members of an employee organization. Under current law, a public employer is defined, for these purposes, to include counties, cities, districts, the state, schools, transit districts, the University of California, and the California State University, among others. Existing law grants the Public Employment Relations Board jurisdiction over violations of these provisions. This bill would include in the definition of public employer under these provisions those employers of excluded supervisory employees and judicial council employees and would include in the definition of public employee those employees of a public transit agency with specified labor relation provisions. Organization North County Transit District Position Watch AB 2061 AB 2225 AB 2249 (Frazier D) Near-zero-emission and zero-emission vehicles. Current Text: Amended: 5/25/2018 html pdf Last Amend: 5/25/2018 Status: 5/31/2018-In Senate. Read first time. To Com. on RLS. for assignment. Location: 5/31/2018-S. RLS. Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. 1st House 2nd House Conc. Enrolled Vetoed Chaptered Summary: Would authorize a near-zero-emission vehicle or a zero-emission vehicle, as defined, to exceed axle, tandem, gross, or bridge formula weight limits, up to a 2,000 pound maximum, by an amount equal to the difference between the weight of the vehicle attributable to the fueling and propulsion system carried by that vehicle and the weight of a comparable diesel fueling and propulsion system. The weight limit exceptions authorized by the bill would apply only to the extent expressly authorized by federal law. Organization North County Transit District Position Watch (Limón D) State government: storing and recording electronic media. Current Text: Amended: 4/10/2018 html pdf Last Amend: 4/10/2018 Status: 5/30/2018-Referred to Com. on G.O. Location: 5/30/2018-S. G.O. Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. 1st House 2nd House Conc. Enrolled Vetoed Chaptered Summary: Would require the Secretary of State, in consultation with the Department of Technology, to approve and adopt appropriate uniform statewide standards for the purpose of storing and recording permanent and nonpermanent documents in electronic media, and would require cloud computing to be defined by the Department of Technology based on industry-recognized standards, consistent with the intent of the state law. Organization North County Transit District Position Watch (Cooley D) Public contracts: local agencies: alternative procedure. Current Text: Introduced: 2/13/2018 html pdf Status: 5/3/2018-Referred to Com. on GOV. & F. Location: 5/3/2018-S. GOV. & F. Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. 1st House 2nd House Conc. Enrolled Vetoed Chaptered Summary: Would authorize public projects of $60,000 or less to be performed by the employees of a public agency, authorize public projects of $200,000 or less to be let to contract by informal procedures, and require public projects of more than $200,000 to be let to contract by formal bidding procedures. Organization North County Transit District Position Watch AB 2304 (Holden D) Reduced fare transit pass programs: report. Current Text: Amended: 4/2/2018 html pdf Last Amend: 4/2/2018 Status: 5/30/2018-In Senate. Read first time. To Com. on RLS. for assignment. Location: 5/30/2018-S. RLS. Page 2/7

24 Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. 1st House 2nd House Conc. Enrolled Vetoed Chaptered Summary: Would request the University of California Institute of Transportation Studies to prepare and submit a report to the Governor and specified committees of the Legislature on or before January 1, 2020, that details the reduced fare transit pass programs in California that are administered by a public transit operator, California college or university, or any other entity, as specified.this bill contains other existing laws. Organization North County Transit District Position Watch AB 2548 AB 2734 AB 2923 (Friedman D) Commute benefit policies: Los Angeles County Metropolitan Transportation Authority. Current Text: Amended: 4/12/2018 html pdf Last Amend: 4/12/2018 Status: 5/10/2018-Referred to Coms. on T. & H. and EQ. Location: 5/10/2018-S. T. & H. Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. 1st House 2nd House Conc. Enrolled Vetoed Chaptered Summary: Current law declares that the fostering, continuance, and development of public transportation systems are a matter of statewide concern. Current law creates the Los Angeles County Metropolitan Transportation Authority, with various powers and duties with respect to transportation planning, programming, construction, and operations.this bill would authorize the authority to adopt a commute benefit ordinance that requires covered employers operating within the authority s area with a specified number of employees to offer certain employees commute benefits, as specified, except that the bill would prohibit the ordinance from affecting employers covered by certain South Coast Air Quality Management District rules or regulations. Organization North County Transit District Position Watch (Frazier D) California Transportation Commission. Current Text: Introduced: 2/15/2018 html pdf Status: 5/30/2018-Referred to Coms. on T. & H. and G.O. Location: 5/30/2018-S. T. & H. Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. 1st House 2nd House Conc. Enrolled Vetoed Chaptered Summary: Would exclude the California Transportation Commission from the Transportation Agency, establish it as an entity in state government, and require it to act in an independent oversight role. The bill would also make conforming changes. Organization North County Transit District Position Watch (Chiu D) San Francisco Bay Area Rapid Transit District: transit-oriented development. Current Text: Amended: 4/30/2018 html pdf Last Amend: 4/30/2018 Status: 5/31/2018-Read third time. Passed. Ordered to the Senate. Location: 5/31/2018-S. DESK Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. 1st House 2nd House Conc. Enrolled Vetoed Chaptered Summary: Current law establishes the San Francisco Bay Area Rapid Transit District (BART) with various powers and duties and establishes a board of directors as the legislative body of the district. This bill would require the board to adopt new transit-oriented development (TOD) guidelines by a majority vote at a duly noticed public meeting that establish minimum local zoning requirements for BART-owned land that is located on contiguous parcels larger than 0.25 acres, within 1/2 mile of an existing or planned BART station entrance, in areas having representation on the BART board of directors. Organization North County Transit District Position Watch AB 2982 (Gloria D) North County Transit District: City of San Diego. Current Text: Amended: 3/22/2018 html pdf Page 3/7

25 Last Amend: 3/22/2018 Status: 5/24/2018-Referred to Com. on T. & H. Location: 5/24/2018-S. T. & H. Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. 1st House 2nd House Conc. Enrolled Vetoed Chaptered Summary: Current law provides for creation of the North County Transit District, with various powers and duties relative to the planning and operation of a transit system in north San Diego County. Current law provides for the district to be governed by a board of directors, which consists of one member of the San Diego County Board of Supervisors, appointed by the board of supervisors, and one member of each city council of the Cities of Carlsbad, Del Mar, Encinitas, Escondido, Oceanside, San Marcos, Solana Beach, and Vista, and each new city that incorporates within the district boundaries, appointed by the respective city council. This bill would additionally include one nonvoting member on that board who is a member of the City Council of the City of San Diego. Organization North County Transit District Position Support AB 3177 ACA 31 SB 502 (Chávez R) North County Transit District: contracting. Current Text: Amended: 4/16/2018 html pdf Last Amend: 4/16/2018 Status: 5/30/2018-Referred to Com. on T. & H. Location: 5/30/2018-S. T. & H. Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. 1st House 2nd House Conc. Enrolled Vetoed Chaptered Summary: Current law provides for creation of the North County Transit District, with various powers and duties relative to the planning and operation of a transit system in north San Diego County. The Uniform Public Construction Cost Accounting Act authorizes a public agency, upon the election of its governing board, by resolution, to become subject to uniform construction cost accounting procedures. The act authorizes public projects of $45,000 or less to be performed by the employees of a public agency, authorizes public projects of $175,000 or less to be let to contract by informal procedures, and requires public projects of more than $175,000 to be let to contract by formal bidding procedures. This bill would authorize the district to opt in to the Uniform Public Construction Cost Accounting Act. Organization North County Transit District Position Sponsor (Cervantes D) Public employee salaries: limit. Current Text: Introduced: 5/23/2018 html pdf Status: 5/24/2018-From printer. May be heard in committee June 23. Location: 5/23/2018-A. PRINT Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. 1st House 2nd House Conc. Enrolled Vetoed Chaptered Summary: Would propose to enact the Public Executive Pay Reform Act of The measure would prohibit an employee of a public employer from receiving an annual base salary or payrate that exceeds the salary of the Governor established by the California Citizens Compensation Commission that is effective at the time the employment contract is entered. The measure would exempt from this prohibition an employment contract in effect on the date the measure becomes effective, but would apply the prohibition to a contract entered into, renewed, extended, or revised on or after that date. Organization North County Transit District Position Watch (Portantino D) Commuter rail systems: availability of automated external defibrillators. Current Text: Amended: 5/31/2018 html pdf Last Amend: 5/31/2018 Status: 5/31/2018-From committee with author's amendments. Read second time and amended. Rereferred to Com. on TRANS. Location: 4/18/2018-A. TRANS. Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. 1st House 2nd House Conc. Enrolled Vetoed Chaptered Summary: Would require a public entity that operates, or contracts for the operation of, a commuter rail system, by July 1, 2020, to ensure that each train has an AED as part of its safety equipment subject to specified requirements, except as specified, and to transmit confirmation of its compliance in writing to the Transportation Agency. The bill would exempt an affected public entity that acquires an Page 4/7

26 AED for emergency care from liability for any civil damages resulting from any acts or omissions in the rendering of the emergency care by use of the AED if the public entity has complied with certain requirements. Organization North County Transit District Position Watch SB 903 SB 929 SB 961 (Cannella R) Transportation Development Act: County of Stanislaus. Current Text: Amended: 5/31/2018 html pdf Last Amend: 5/31/2018 Status: 5/31/2018-From committee with author's amendments. Read second time and amended. Rereferred to Com. on TRANS. Location: 4/19/2018-A. TRANS. Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. 1st House 2nd House Conc. Enrolled Vetoed Chaptered Summary: Would authorize the Stanislaus Council of Governments, a transportation planning agency, when determining if specified operators have met the requirements for claims for transit funds for the and the fiscal years, to reduce the applicable ratio of fare revenues to operating cost for specified operators by up to 5 percentage points from the ratio that was effective during the fiscal year. If the Stanislaus Council of Governments acts pursuant to this authorization, the bill would require it, before January 1, 2020, to submit a report to the transportation policy committee of each house of the Legislature and to the Department of Transportation analyzing the options for organizing and supporting transit service in the county, as specified. Organization North County Transit District Position Watch (McGuire D) Special districts: Internet Web sites. Current Text: Amended: 3/6/2018 html pdf Last Amend: 3/6/2018 Status: 4/30/2018-Referred to Com. on L. GOV. Location: 4/30/2018-A. L. GOV. Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. 1st House 2nd House Conc. Enrolled Vetoed Chaptered Summary: The California Public Records Act requires a local agency to make public records available for inspection and allows a local agency to comply by posting the record on its Internet Web site and directing a member of the public to the Web site, as specified. This bill would, beginning on January 1, 2020, require every independent special district to maintain an Internet Web site that clearly lists contact information for the special district, except as provided. Because this bill would require local agencies to provide a new service, the bill would impose a state-mandated local program. Organization North County Transit District Position Watch (Allen D) Enhanced infrastructure financing districts. Current Text: Amended: 5/7/2018 html pdf Last Amend: 5/7/2018 Status: 5/29/2018-Read third time. Passed. (Ayes 38. Noes 0.) Ordered to the Assembly. In Assembly. Read first time. Held at Desk. Location: 5/29/2018-A. DESK Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. 1st House 2nd House Conc. Enrolled Vetoed Chaptered Summary: Would enact the Second Neighborhood Infill Finance and Transit Improvements Act, which would similarly authorize a city, county, or city and county to adopt a resolution, at any time before or after the adoption of the infrastructure financing plan for an enhanced infrastructure financing district, to allocate tax revenues of that entity to the district, including revenues derived from local sales and use taxes imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or transactions and use taxes imposed in accordance with the Transactions and Use Tax Law, if the area to be financed is within one-half mile of a major transit stop, as specified, and, among other things, certain conditions relating to housing and the infrastructure financing plan are or will be met. Organization North County Transit District Position Watch Page 5/7

27 SB 1119 (Newman D) Low Carbon Transit Operations Program. Current Text: Introduced: 2/13/2018 html pdf Status: 5/17/2018-Referred to Com. on TRANS. Location: 5/17/2018-A. TRANS. Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. 1st House 2nd House Conc. Enrolled Vetoed Chaptered Summary: Current law requires, for recipient transit agencies whose service areas include disadvantaged communities, as specified, that those recipient transit agencies expend at least 50% of the total moneys they received as part of the Low Carbon Transit Operations Program on projects or services that meet specified requirements and benefit those disadvantaged communities. This bill would authorize a recipient transit agency to satisfy the above-stated requirement by expending at least 50% of program funds received on transit fare subsidies, specified transit connections, or technology improvements that reduce emissions of greenhouse gases. Organization North County Transit District Position Watch SB 1151 SB 1244 SB 1376 (Bates R) Neighborhood electric vehicles: County of San Diego. Current Text: Amended: 4/26/2018 html pdf Last Amend: 4/26/2018 Status: 5/31/2018-Referred to Com. on TRANS. Location: 5/31/2018-A. TRANS. Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. 1st House 2nd House Conc. Enrolled Vetoed Chaptered Summary: Current law authorizes, until January 1, 2022, the County of Orange (county) to establish a specified neighborhood electric vehicle (NEV) transportation plan for the Ranch Plan Planned Community in that county the purpose of which is to further the community s vision of creating a sustainable development that reduces gasoline demand and vehicle emissions by offering a cleaner, more economical means of local transportation within the plan area. This bill would, until January 1, 2029, authorize the County of San Diego or any city in the county to establish a similar NEV transportation plan, as specified. Organization North County Transit District Position Watch (Wieckowski D) Public records: disclosure. Current Text: Amended: 5/15/2018 html pdf Last Amend: 5/15/2018 Status: 5/29/2018-Read third time. Passed. (Ayes 38. Noes 0.) Ordered to the Assembly. In Assembly. Read first time. Held at Desk. Location: 5/29/2018-A. DESK Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. 1st House 2nd House Conc. Enrolled Vetoed Chaptered Summary: The California Public Records Act makes specified records exempt from disclosure and provides that disclosure by a state or local agency of a public record that is otherwise exempt constitutes a waiver of the exemptions.the act, when it appears to a superior court that certain public records are being improperly withheld from a member of the public, requires the court to order the officer or person charged with withholding the records to disclose the public record or show cause why he or she should not do so. The act requires the court to award court costs and reasonable attorney fees to the plaintiff if the plaintiff prevails in litigation filed pursuant to these provisions, and requires the court to award court costs and reasonable attorney fees to the public agency if the court finds that the plaintiff s case is clearly frivolous. This bill would replace plaintiff with requester in that provision. Organization North County Transit District Position Watch (Hill D) Transportation network companies: accessibility for persons with disabilities. Current Text: Amended: 3/22/2018 html pdf Last Amend: 3/22/2018 Status: 5/31/2018-Read third time. Passed. (Ayes 39. Noes 0.) Ordered to the Assembly. In Assembly. Read first time. Held at Desk. Location: 5/31/2018-A. DESK Page 6/7

28 Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. 1st House 2nd House Conc. Enrolled Vetoed Chaptered Summary: Would express the intent of the Legislature that every transportation network company ensure that it provides full and equal access to all persons with disabilities. Organization North County Transit District Position Watch SB 1384 (Bates R) Repatriation Infrastructure Fund. Current Text: Introduced: 2/16/2018 html pdf Status: 4/25/2018-Do pass, but first be re-referred to the Committee on [Rules] (FAIL) VOTE: [ ] hearing: Motion to Reconsider. [Reconsideration Granted.] Location: 3/8/2018-S. GOV. & F. Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. 1st House 2nd House Conc. Enrolled Vetoed Chaptered Summary: Would, until July 1, 2025, require the Department of Finance, in consultation with the Franchise Tax Board, to estimate, on an annual basis by November 1 of each year, the amount of revenue to be received from state taxes in the next fiscal year as a consequence of enactment of a federal corporate repatriation statute pursuant to which foreign earnings of United States-based corporations that are currently invested abroad are moved to the United States. Organization North County Transit District Position Watch SB 1387 Organization North County Transit District Total Measures: 24 Total Tracking Forms: 24 (Beall D) Peninsula Rail Transit District. Current Text: Introduced: 2/16/2018 html pdf Status: 4/26/2018-Referred to Com. on TRANS. Location: 4/26/2018-A. TRANS. Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. 1st House 2nd House Conc. Enrolled Vetoed Chaptered Summary: Current law, operative under certain conditions, redesignates the Peninsula Corridor Study Joint Powers Board as the Peninsula Rail Transit District, comprised of 9 members appointed from various governing bodies situated in the City and County of San Francisco and the Counties of San Mateo and Santa Clara, with specified powers.this bill would repeal the provisions relating to the Peninsula Rail Transit District. Position Watch Page 7/7

29 Agenda Item # 2 RECEIVE THE MONTHLY TRANSIT OPERATIONS PERFORMANCE REPORT FOR APRIL 2018 STAFF RECOMMENDATION: BACKGROUND INFORMATION: Time Sensitive: Consent: Receive the Monthly Transit Operations Performance Report for April The Transit Planning and Bus Operations Division is responsible for the North County Transit District's (NCTD) transit service planning, design, scheduling, and monitoring. This Division is also responsible for coordination with the San Diego Association of Governments (SANDAG) and local governments to promote transit service, determine locations for bus stops, influence development that is transit supportive and facilitate capital project planning and permitting. The Transit Planning and Bus Operations Division supports bus operations, the Finance Division, the Rail Operations, and Development Services Divisions. The Monthly Transit Operations Performance Report is intended to provide performance reporting around key performance indicators without the detailed analysis of trends that is included within the Quarterly Transit Operations Report. System-wide Ridership: Total NCTD system-wide ridership decreased by 1.4% in the month of April 2018 compared to April The lower monthly ridership, coupled with the additional weekday in April 2018 compared to April 2017, means system-wide average weekday ridership declined by 3.0%. While ridership declined for the month of April 2018, it is important to note that service levels on a system-wide basis were reduced by 5.4% compared to April BREEZE / LIFT / FLEX: BREEZE total ridership decreased 1.0% compared to April 2017 and average weekday ridership decreased by 2.5% compared to April NCTD implemented BREEZE service changes on October 8, 2017 that resulted in a 8.8% reduction in revenue hours and revenue miles for April 2018 compared with April BREEZE boardings per revenue hour in April 2018 increased by 8.7% compared to April Increasing productivity in terms of boardings per revenue hour was one of the primary goals of the service reduction that occurred in October On-time performance decreased to 87.19%. Major mechanical failures decreased by 16.7% compared to April LIFT ridership decreased 4.1% in the month of April 2018 compared to the month of April On-time performance for the month of April 2018 increased to 92.7%. Call response time (the average amount of time a customer waits from the time they select an option (reservations, cancelations, etc.) to the time they first speak to a representative) improved by 74.7% compared to the month of April June 21, 2018 Board Meeting Staff Report No.: SR

30 Significant changes were made to FLEX service with the October 2017 service change. FLEX zones 373 and 374 were eliminated, and routes 392 and 395 were changed to deviated fixed-routes with time points. Routes 392 and 395 now use FLEX branding and fares which are $5 compared with the BREEZE fare of $1.75, per trip. Due to the nature of the two new FLEX routes (replacement of fixed route bus service) and the low ridership of the two prior FLEX zones (373 and 374), FLEX ridership increased by 52.9% in the month of April On-time performance for FLEX increased to 99.5% compared to April COASTER / SPRINTER: COASTER ridership increased 1.9% in the month of April 2018 compared to the month of April 2017, but average weekday ridership decreased by 0.1% due to one additional weekday in April SPRINTER experienced a decrease in total ridership of 4.6% and average weekday ridership decreased by 5.9%. On-time performance increased to 94.5% for COASTER and decreased slightly from to 98.2% for SPRINTER in the month of April 2018 compared to the month of April ATTACHMENT: 2A Monthly Transit Operations Performance Report, April 2018 GOAL/STRATEGIC DIRECTION: Accountability and Performance Management FISCAL IMPACT: This staff report has no fiscal impact. COMMITTEE REVIEW: None STAFF CONTACT: Damon Blythe, Chief Operations Officer-Transit Planning & Bus Operations dblythe@nctd.org Phone: June 21, 2018 Board Meeting Staff Report No.: SR

31 Transportation Operations Performance Report April 2018 ATTACHMENT 2A External Factors Goal April 2017 April 2018 Variance from Prior Year Variance from Goal Weekdays Days of Inclement Weather Average Cost of Gallon of Gasoline ---- $3.02 $ % ---- SYSTEM (All Modes) Goal April 2017 April 2018 Variance from Prior Year Variance from Goal Total Boarding Riders 909, , , (1.38%) (1.36%) Average Weekday Boarding Riders 36, , , (3.01%) (0.78%) BREEZE Performance Goal April 2017 April 2018 Variance from Prior Year Variance from Goal Total Boarding Riders 561, , , (0.85%) (2.25%) Average Weekday Boarding Riders 22, , , (2.50%) (2.90%) Boardings per Revenue Hour % (21.85%) Percent of Scheduled Service Operated 99.98% 99.88% % 0.12% 0.02% Major Mechanical Failures (16.67%) (12.78%) Other Mechanical Failures % % Chargeable Accidents (66.67%) (58.46%) On-time Performance 90.0% 89.95% 87.19% (3.08%) (3.13%) Passenger Concerns % 31.58% LIFT Performance Goal April 2017 April 2018 Variance from Prior Year Variance from Goal Total Riders 17, , , (4.07%) (11.64%) Average Weekday Riders (5.90%) (5.99%) Passengers per Revenue Hour % (3.42%) Passengers per Revenue Mile (4.43%) (4.79%) Accidents and Incidents % % On-Time Performance 92.00% 87.96% 92.70% 5.39% 0.76% Passenger Concerns % (7.69%) Call Response Time (minutes) 2:00 4:21 1:06 (74.71%) (45.00%) Average Length of Call (minutes) 2:00 1:56 2: % 27.50% 1-30 Minutes Past the 30-Minute Pick-Up Window 1, % (23.74%) Minutes Past the 30-Minute Pick-Up Window (23.81%) (15.79%) >60 Minutes Past the 30-Minute Pick-Up Window (53.85%) (68.42%) FLEX Performance Goal April 2017 April 2018 Variance from Prior Year Variance from Goal Total Riders 1, , , % 54.20% Average Weekday Riders % 62.16% Passengers per Revenue Hour (45.84%) 2.36% Passengers per Revenue Mile (48.12%) 51.43% On-time Performance 95.00% 97.49% 99.48% 2.04% 4.72% Passenger Concerns % % Accidents and Incidents % - % COASTER Performance Goal April 2017 April 2018 Variance from Prior Year Variance from Goal Total Boarding Riders 116, , , % 1.01% Average Weekday Boarding Riders 4, , , (0.13%) 6.43% Boardings per Revenue Hour (2.17%) (2.04%) Percent of Scheduled Service Operated % 99.45% % 0.55% - % Major Mechanical Failures % (100.00%) Other Mechanical Failures (100.00%) - % Chargeable Accidents % - % On-time Performance 95.0% 94.20% 94.50% 0.32% (0.53%) Passenger Concerns % 87.50% SPRINTER Performance Goal April 2017 April 2018 Variance from Prior Year Variance from Goal Total Boarding Riders 213, , , (4.60%) 0.11% Average Weekday Boarding Riders 8, , , (5.90%) 0.76% Boardings per Revenue Hour (5.47%) 0.49% Percent of Scheduled Service Operated % 99.90% 99.79% (0.11%) (0.21%) Major Mechanical Failures % % Other Mechanical Failures % % Chargeable Accidents % - % On-time Performance 98.0% 98.30% 98.20% (0.10%) 0.20% Passenger Concerns % (18.18%)

32 Agenda Item # 3 ADOPT AMENDED AND RESTATED RESOLUTION NO AUTHORIZING THE EXECUTIVE DIRECTOR AND/OR HIS DESIGNEES TO EXECUTE THE CERTIFICATIONS AND ASSURANCES AND AUTHORIZED AGENT FORM FOR THE FY LOW CARBON TRANSPORTATION PROGRAM FOR THE PURCHASE OF SIX (6) REPLACEMENT ZERO EMISSION BUSES STAFF RECOMMENDATION: BACKGROUND INFORMATION: Time Sensitive: Consent: Adopt Amended and Restated Resolution No authorizing the Executive Director or his designee(s) to execute the Certifications and Assurances and authorized agent form for the LCTOP allocation of $1,610,043 for the purchase of six (6) replacement zero emission buses. The Low Carbon Transit Operations Program (LCTOP) was established by the California Legislature in 2014 by Senate Bill 862. The LCTOP was created to provide operating and capital assistance for transit agencies to reduce greenhouse gas emissions and improve mobility, with a priority on serving Disadvantaged Communities (DAC). Senate Bill 862 establishes the LCTOP as a formulaic program instead of a state-level competitive program. The North County Transit District (NCTD) is estimated to receive $1,610,043 in LCTOP funds for FY and proposes to use the funds for the Purchase of Six (6) Replacement Zero Emission Buses. LCTOP Program guidelines allow agencies to roll over funds up to four years to accumulate sufficient funding for a project. Using the FY allocation of $1,610,043, NCTD planned to roll over three years of funding at $1.6M per year in addition to the FY 2017 allocation of $542,133, which would bring the total amount of project funding to $5.3M. Battery-electric buses have an estimated cost of $900,000 each; therefore, $5.3M was sufficient to purchase five buses, leaving $800,000 unallocated. On April 19, 2018, the Board adopted Resolution No , authorizing the execution of Certifications and Assurances and authorized agent form for the LCTOP Program for the purchase of five (5) replacement buses. Upon submission of the allocation request, LCTOP staff advised NCTD that the project application should be modified to increase the amount of estimated LCTOP funding in FY 2020 to purchase six buses, rather than five. This item is before the Board to increase the estimated LCTOP funding in FY 2020 and increase the number of buses purchased with program funds to six (6). Accordingly, staff recommends that the Board of Directors adopt Amended and Restated Resolution No authorizing the execution of Certifications and Assurances and authorized agent form for the FY LCTOP allocation of $1,610,043 for the purchase of six (6) replacement zero emission buses. ATTACHMENT: 3A Draft Amended and Restated Resolution No June 21, 2018 Board Meeting Staff Report No.: SR

33 GOAL/STRATEGIC DIRECTION: FISCAL IMPACT: COMMITTEE REVIEW: STAFF CONTACT: Asset Management and State of Good Repair There is no direct fiscal impact with adoption of this Board resolution; however, Board adoption of this resolution is required for receiving funding under the LCTOP Program. None Eun Park-Lynch, Interim Chief Financial Officer Phone: June 21, 2018 Board Meeting Staff Report No.: SR

34 ATTACHMENT 3A AMENDED AND RESTATED RESOLUTION NO AUTHORIZATION FOR THE EXECUTION OF THE CERTIFICATIONS AND ASSURANCES FOR THE LOW CARBON TRANSIT OPERATIONS PROGRAM (LCTOP) FOR THE FOLLOWING PROJECT(S): PURCHASE OF SIX (6) REPLACEMENT ZERO EMISSION BUSES WHEREAS, the North County Transit District is an eligible project sponsor and may receive state funding from the Low Carbon Transit Operations Program (LCTOP) for transit projects; and WHEREAS, the statutes related to state-funded transit projects require a local or regional implementing agency to abide by various regulations; and WHEREAS, Senate Bill 862 (2014) named the California Department of Transportation (Caltrans) as the administrative agency for the LCTOP; and WHEREAS, Caltrans has developed guidelines for the purpose of administering and distributing LCTOP funds to eligible project sponsors (local agencies); and WHEREAS, the Executive Director has designated the following positions as North County Transit District Authorized Agent(s) for the LCTOP program and any Amendments thereto with the California Department of Transportation: Chief Financial Officer Director of Budget Transportation Program Manager WHEREAS, the North County Transit District wishes to implement the following LCTOP project(s) listed above; NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the North County Transit District that the fund recipient agrees to comply with all conditions and requirements set forth in the Certification and Assurances and the Authorized Agent documents and applicable statutes, regulations and guidelines for all LCTOP funded transit projects. NOW THEREFORE, BE IT FURTHER RESOLVED that the Executive Director and/or his designees be authorized to execute all required documents of the LCTOP program and any Amendments thereto with the California Department of Transportation. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the North County Transit District that it hereby authorizes the submittal of the following project nomination(s) and allocation request(s) to Caltrans in FY LCTOP funds:

35 Project Name: Purchase of Six (6) Replacement Zero Emission Buses Amount of LCTOP funds requested: $1,610,043 Short description of project: Project will purchase six (6) replacement zero emission battery-electric buses. Contributing Sponsors: SANDAG PASSED, APPROVED AND ADOPTED at the regular meeting of the Board of Directors of the North County Transit District this 21 st day of June, BOARD CHAIR North County Transit District CERTIFICATION I, Anthony Flores, duly appointed and qualified, Clerk of the Board of the North County Transit District, do hereby certify that the above is a true and correct copy of a resolution passed and approved by the Board of Directors of the North County Transit District adopted at a legally convened meeting of the Board of Directors of the North County Transit District held on the 21st day of June, CLERK OF THE BOARD North County Transit District Page 2 of 6

36 AMENDED AND RESTATED RESOLUTION NO RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORTH COUNTY TRANSIT DISTRICT AUTHORIZING THE EXECUTION OF THE CERTIFICATIONS AND ASSURANCESFOR THE LOW CARBON TRANSIT OPERATIONS PROGRAM Exhibit A Certification and Assurances Low Carbon Transit Operations Program (LCTOP) CERTIFICATIONS AND ASSURANCES Project Sponsor: Agency Name: _North County Transit District Effective Date of this Document: The California Department of Transportation (Caltrans) has adopted the following certifications and assurances for the Low Carbon Transit Operations Program. As a condition of the receipt of LCTOP funds, Lead Agency must comply with these terms and conditions. A. General (1) The Lead Agency agrees to abide by the current LCTOP Guidelines and applicable legal requirements. (2) The Lead Agency must submit to Caltrans a signed Authorized Agent form designating the representative who can submit documents on behalf of the project sponsor and a copy of the board resolution appointing the Authorized Agent. B. Project Administration (1) The Lead Agency certifies that required environmental documentation is complete before requesting an allocation of LCTOP funds. The Lead Agency assures that projects approved for LCTOP funding comply with Public Resources Code and (2) The Lead Agency certifies that a dedicated bank account for LCTOP funds only will be established within 30 days of receipt of LCTOP funds. (3) The Lead Agency certifies that when LCTOP funds are used for a transit capital project, that the project will be completed and remain in operation for its useful life. (4) The Lead Agency certifies that it has the legal, financial, and technical capacity to carry out the project, including the safety and security aspects of that project. (5) The Lead Agency certifies that they will notify Caltrans of pending litigation, dispute, or negative audit findings related to the project, before receiving an allocation of funds. Page 3 of 6

37 (6) The Lead Agency must maintain satisfactory continuing control over the use of project equipment and facilities and will adequately maintain project equipment and facilities for the useful life of the project. (7) Any interest the Lead Agency earns on LCTOP funds must be used only on approved LCTOP projects. (8) The Lead Agency must notify Caltrans of any changes to the approved project with a Corrective Action Plan (CAP). (9) Under extraordinary circumstances, a Lead Agency may terminate a project prior to completion. In the event the Lead Agency terminates a project prior to completion, the Lead Agency must (1) contact Caltrans in writing and follow-up with a phone call verifying receipt of such notice; (2) pursuant to verification, submit a final report indicating the reason for the termination and demonstrating the expended funds were used on the intended purpose; (3) submit a request to reassign the funds to a new project within 180 days of termination. C. Reporting (1) The Lead Agency must submit the following LCTOP reports: a. Semi-Annual Progress Reports by May 15 th and November 15 th each year. b. A Final Report within six months of project completion. c. The annual audit required under the Transportation Development Act (TDA), to verify receipt and appropriate expenditure of LCTOP funds. A copy of the audit report must be submitted to Caltrans within six months of the close of the year (December 31) each year in which LCTOP funds have been received or expended. (2) Other Reporting Requirements: ARB is developing funding guidelines that will include reporting requirements for all State agencies that receive appropriations from the Greenhouse Gas Reduction Fund. Caltrans and project sponsors will need to submit reporting information in accordance with ARB s funding guidelines, including reporting on greenhouse gas reductions and benefits to disadvantaged communities. D. Cost Principles (1) The Lead Agency agrees to comply with Title 2 of the Code of Federal Regulations 225 (2 CFR 225), Cost Principles for State and Local Government, and 49 CFR, Part 18, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments. (2) The Lead Agency agrees, and will assure that its contractors and subcontractors will be obligated to agree, that: a. Contract Cost Principles and Procedures, 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31, et seq., shall be used to determine the allow ability of individual project cost items and b. Those parties shall comply with Federal administrative procedures in accordance with 49 CFR, Part 18, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments. Every sub-recipient receiving LCTOP funds as a contractor or sub-contractor shall comply with Federal administrative procedures in accordance with 49 CFR, Part 18, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments. Page 4 of 6

38 (3) Any project cost for which the Lead Agency has received funds that are determined by subsequent audit to be unallowable under 2 CFR 225, 48 CFR, Chapter 1, Part 31 or 49 CFR, Part 18, are subject to repayment by the Lead Agency to the State of California (State). All projects must reduce greenhouse gas emissions, as required under Public Resources Code section 75230, and any project that fails to reduce greenhouse gases shall also have its project costs submit to repayment by the Lead Agency to the State. Should the Lead Agency fail to reimburse moneys due to the State within thirty (30) days of demand, or within such other period as may be agreed in writing between the Parties hereto, the State is authorized to intercept and withhold future payments due the Lead Agency from the State or any third-party source, including but not limited to, the State Treasurer and the State Controller. E. Record Retention (1) The Lead Agency agrees and will assure that its contractors and subcontractors shall establish and maintain an accounting system and records that properly accumulate and segregate incurred project costs and matching funds by line item for the project. The accounting system of the Lead Agency, its contractors and all subcontractors shall conform to Generally Accepted Accounting Principles (GAAP) and enable the determination of incurred costs at interim points of completion. All accounting records and other supporting papers of the Lead Agency, its contractors and subcontractors connected with LCTOP funding shall be maintained for a minimum of three (3) years after the Project Closeout report or final Phase 2 report is submitted (per ARB Funding Guidelines, Vol. 3, page 3.A-16), and shall be held open to inspection, copying, and audit by representatives of the State and the California State Auditor. Copies thereof will be furnished by the Lead Agency, its contractors, and subcontractors upon receipt of any request made by the State or its agents. In conducting an audit of the costs claimed, the State will rely to the maximum extent possible on any prior audit of the Lead Agency pursuant to the provisions of federal and State law. In the absence of such an audit, any acceptable audit work performed by the Lead Agency s external and internal auditors may be relied upon and used by the State when planning and conducting additional audits. (2) For the purpose of determining compliance with Title 21, California Code of Regulations, Section 2500 et seq., when applicable, and other matters connected with the performance of the Lead Agency s contracts with third parties pursuant to Government Code , the project sponsor, its contractors and subcontractors and the State shall each maintain and make available for inspection all books, documents, papers, accounting records, and other evidence pertaining to the performance of such contracts, including, but not limited to, the costs of administering those various contracts. All of the above referenced parties shall make such materials available at their respective offices at all reasonable times during the entire project period and for three (3) years from the date of final payment. The State, the California State Auditor, or any duly authorized representative of the State, shall each have access to any books, records, and documents that are pertinent to a project for audits, examinations, excerpts, and transactions, and the Lead Agency shall furnish copies thereof if requested. (3) The Lead Agency, its contractors and subcontractors will permit access to all records of employment, employment advertisements, employment application forms, and other pertinent data and records by the State Fair Employment Practices and Housing Commission, or any other agency of the State of California designated by the State, for the purpose of any investigation to ascertain compliance with this document. Page 5 of 6

39 F. Special Situations Caltrans may perform an audit and/or request detailed project information of the project sponsor s LCTOP funded projects at Caltran s discretion at any time prior to the completion of the LCTOP. I certify all of these conditions will be met. BY: Matthew O. Tucker, Executive Director Date Page 6 of 6

40 STAFF RECOMMENDATION: BACKGROUND INFORMATION: Agenda Item # 4 ADOPT RESOLUTION NO AUTHORIZING THE EXECUTIVE DIRECTOR, AND/OR HIS DESIGNEES, TO TAKE ANY AND ALL ACTIONS NECESSARY ON BEHALF OF THE NORTH COUNTY TRANSIT DISTRICT, FOR THE PURPOSE OF OBTAINING FY 2019 FINANCIAL ASSISTANCE THROUGH THE STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION AS AUTHORIZED UNDER 49 CFR 5311/FIXING AMERICA S SURFACE TRANSPORTATION ACT 3007 Time Sensitive: Consent: Adopt Resolution authorizing the Executive Director, and/or his designees, to take any and all actions necessary on behalf of the North County Transit District, for the purpose of obtaining FY 2019 financial assistance through the State of California Department of Transportation as authorized under 49 CFR 5311/Fixing America s Surface Transportation Act The 49 CFR 5311/Fixing America s Surface Transportation Act (FAST) 3007 program (Section 5311), administered by the US Department of Transportation through the Federal Transit Administration (FTA), provides funding to support public transportation in rural areas with populations less than 50,000 as quantified by the United States Census Bureau. The FTA appropriates Section 5311 funds annually to each state. For California, the Governor has designated the grantee to be the State of California Department of Transportation (Caltrans) through its Division of Mass Transportation. In San Diego County, Caltrans allocates these funds between the North County Transit District (NCTD) and the San Diego Metropolitan Transit System (MTS), based on the relative non-urban populations in each agency s service area. For FY 2019, the projected allocation for NCTD is $440,965. This allocation, combined with the required 44.67% local match of $356,008 in Transportation Development Act (TDA) 4.0 funds, brings the total monies available to $796,973, which will support the operations of certain BREEZE fixed-route buses serving the non-urban population in the NCTD service area, including the rural towns and communities of Fallbrook, Rincon, Pala, Pala Vista, and Pauma Valley. These funds will be incorporated into the Regional Transportation Improvement Program (RTIP), as developed by the San Diego Association of Governments (SANDAG), and as is required for all federal funds used for transit projects. The proposed Resolution No authorizes the Executive Director and/or his designees to take any and all actions necessary to secure the Section 5311 funding and program the TDA local match, including amending the RTIP, and approving, executing and submitting documents or information to SANDAG, Caltrans, or other agencies as required. Staff recommends that the Board adopt Resolution No authorizing the Executive Director, and/or his designees, to take any and all actions necessary on behalf of the North County Transit District, for the purpose of obtaining FY 2019 financial assistance through the State of California Department of Transportation as authorized under 49 CFR 5311/Fixing America s Surface Transportation Act June 21, 2018 Board Meeting Staff Report No.: SR

41 ATTACHMENT: 4A Draft Resolution No GOAL/STRATEGIC DIRECTION: FISCAL IMPACT: COMMITTEE REVIEW: STAFF CONTACT: Improve Financial Health The fiscal impact of this proposed action would be to accept Federal Transit Administration Section 5311 grant revenues of $440,965, passed through the State of California Department of Transportation, and encumber the required 44.67% local match of $356,008 in Transportation Development Act 4.0 funds, bringing the total monies available to $796,973, which will support operating expenses of certain BREEZE fixed-route buses serving the non-urban population in the NCTD service area. None Eun Park-Lynch, Interim Chief Financial Officer Phone: June 21, 2018 Board Meeting Staff Report No.: SR

42 ATTACHMENT 4A RESOLUTION NO AUTHORIZATION FOR THE EXECUTIVE DIRECTOR AND/OR HIS DESIGNEES TO TAKE ANY AND ALL ACTIONS NECESSARY FOR AND ON BEHALF OF THE NORTH COUNTY TRANSIT DISTRICT FOR THE PURPOSE OF OBTAINING FY 2019 FINANCIAL ASSISTANCE THROUGH THE STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION AS AUTHORIZED UNDER 49 CFR 5311 WHEREAS, the US Department of Transportation is authorized to make grants to states through the Federal Transit Administration to support public transportation for nonurbanized public transportation systems under 49 CFR 5311/Fixing America s Surface Transportation Act (FAST) Section 3007 (Section 5311); and WHEREAS, the State of California Department of Transportation (Caltrans) has been designated by the Governor to the State of California to administer Section 5311 grants to support public transit service in the non-urbanized areas which have populations of fewer than 50,000 residents, as quantified by the United States Census Bureau; and WHEREAS, in San Diego County, Caltrans allocates these Section 5311 funds between the North County Transit District (NCTD) and the San Diego Metropolitan Transit System (MTS), based on the relative non-urban populations in each agency s service area; and WHEREAS, NCTD wishes to apply for said federal assistance to support the operation of certain BREEZE fixed-route buses serving the non-urban population in the NCTD service area; and WHEREAS, NCTD ensures the programming and availability of local matching funds for the Section 5311 grant; and WHEREAS, NCTD has, to the maximum extent feasible, coordinated with other transportation providers and users in the region; and WHEREAS, for purposes of carrying out the actions contemplated in this resolution, the Executive Director has identified the following positions to be named designees: Chief Financial Officer Director of Budget Transportation Program Manager NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the North County Transit District does hereby authorize the Executive Director and/or his designees to execute for and on behalf of the North County Transit District and take any and all actions necessary for the purpose of obtaining FY 2019 financial assistance through the State of California Department of Transportation (Caltrans) as authorized under 49 CFR 5311/Fixing America s Surface Transportation Act (FAST) Section 3007; and

43 That the Executive Director and/or his designees is authorized to execute and file all certification and assurances, agreements, additional information or any other document required in connection for Section 5311 funding; and That the Executive Director and/or his designees is authorized to submit and approve request(s) for reimbursement of funds for the Section 5311 grant. PASSED, APPROVED AND ADOPTED at the regular meeting of the Board of Directors of the North County Transit District this 21 st day of June, BOARD CHAIR North County Transit District CERTIFICATION I, Anthony Flores, duly appointed and qualified, Clerk of the Board of the North County Transit District, do hereby certify that the above is a true and correct copy of a resolution passed and approved by the Board of Directors of the North County Transit District adopted at a legally convened meeting of the Board of Directors of the North County Transit District held on the 21 st day of June, CLERK OF THE BOARD North County Transit District Page 2 of 2

44 Agenda Item # 5 APPROVE UNILATERAL SUPPLEMENTAL AGREEMENT NO. 17 TO AGREEMENT NO WITH FIRST TRANSIT, INC. FOR FINAL CLOSE-OUT OF AGREEMENT FOR OPERATIONS AND MAINTENANCE OF TRANSIT SERVICES STAFF RECOMMENDATION: BACKGROUND INFORMATION: Time Sensitive: Consent: Authorize the Executive Director to execute Unilateral Supplemental Agreement No. 17 to close-out Agreement No with First Transit, Inc. for the provision of operations and maintenance services in the amount of $24,513, The North County Transit District (NCTD) contracted with First Transit for the provision of BREEZE operations. This contract was approved by the Board on November 19, 2009 and Notice to Proceed was issued on January 4, The Base Contract term expired on June 30, Within the base contract term, both ADA Paratransit and FLEX operations were added to the scope due to exigent circumstances resulting from the termination of the agreement with ALC. NCTD is closing out the First Transit Contract and is reconciling expenses that were approved by the Board of Directors (Board) through the annual budget process to true up the final contract costs. The base contract with First Transit was for $178,181,506 and assumed flat service levels for the 7-year term divided up into two different service categories, big bus and small bus with differing rates of reimbursement (big bus being higher than small bus). The actual service levels that were approved by the Board and operated were higher overall as a result of the Mobility Plan and included more big bus service and less small bus service than originally anticipated. The base cost of the contract was also increased based on the Board s approval to include ADA Paratransit and FLEX services in Supplemental Agreement 10 to the base contract at the December 19, 2013 Board meeting. The Supplemental Agreement had a value of $13,100,000 and assumed flat service levels for LIFT and FLEX. The actual service levels that were approved by the Board and operated were higher than planned due to higher than expected LIFT ridership. Per federal regulations, NCTD is required to provide complementary paratransit service to any passenger who is determined to be eligible if the trip is within the same time-span of service that fixed route bus service operates, and the trip origin and destination are within ¾ of a mile of a fixed route bus line. Although the overall contract value was higher than initially approved by the Board with contract award, the Board authorized the expenditure on an annual basis based on the service levels approved by the Board in the adoption of the annual operating budget. Staff has drafted Supplemental Agreement No. 17 to Agreement No to reflect actual expenditures of $24,513, for a total contract amount of $217,977, Staff recommends that the Board authorize the Executive Director to execute Unilateral Supplemental Agreement No. 17 to close-out Agreement No with First Transit in the amount of $24,513, June 21, 2018 Board Meeting Staff Report No.: SR

45 ATTACHMENT: None GOAL/STRATEGIC DIRECTION: N/A FISCAL IMPACT: The FY2018 total fiscal impact for this proposed contract action is $147, The FY2018 capital fiscal impact is $47,065.70, which is funded with Federal Transit Administration and matching local Transit Development Act monies in project The FY2018 operating fiscal impact of this item is $100, The remaining $24,365, were included and approved by the Board in prior fiscal year budgets based upon service levels approved by the Board. COMMITTEE REVIEW: STAFF CONTACT: None Damon Blythe, Chief Operations Officer-Transit Planning & Bus Operations Phone: June 21, 2018 Board Meeting Staff Report No.: SR

46 Agenda Item # 6 AUTHORIZE THE EXECUTIVE DIRECTOR TO EXECUTE TASK ORDER AGREEMENT NO. 5 TO AGREEMENT NO WITH TRC SOLUTIONS, INC. FOR THE SIXTH YEAR OF NON-TRADITIONAL PHASE II MUNICIPAL SEPARATE STORM SEWER SYSTEM (MS4) GENERAL PERMIT COMPLIANCE EFFORTS STAFF RECOMMENDATION: BACKGROUND INFORMATION: Time Sensitive: Consent: Authorize the Executive Director to execute Task Order Agreement (TOA) No. 5 to Agreement No with TRC Solutions, Inc. for year six (FY19) of the Phase II Municipal Separate Storm Sewer Systems (MS4) General Permit administered by the State Water Resources Control Board Order No DWQ in an amount not-to-exceed $409,447. In 2013, the North County Transit District (NCTD) was designated a Non- Traditional Phase II Municipal Separate Storm Sewer System (MS4) by the State Water Resources Control Board (SWRCB) Water Quality Order No DWQ (collectively, the Order or MS4 Permit ). This Order required NCTD to enroll as a Non-Traditional Phase II Small MS4 Permittee and implement the stormwater pollution prevention tasks prescribed by the MS4 Permit within the mandated timeframe. On August 22, 2014, NCTD issued an RFP to solicit proposals for Storm Water Management Services. Nine (9) responsive proposals were received and evaluated against the criteria listed in the solicitation. On November 20, 2014, the NCTD Board of Directors (Board) authorized the Executive Director to award Agreement No to TRC Solutions, Inc. in an amount not-to-exceed $1,500,000 to provide task order based, on-call consulting services for Stormwater Management Services for an initial period of four (4) years ending February 12, 2019, with a one (1) year option for additional work to support the District's compliance with the State issued MS4 Permit. At that time, the Board also authorized the Executive Director to issue TOA No.1 for permit compliance efforts for year two (FY15) of the permit in an amount not-to-exceed $317,056. Additional task orders have been completed for stormwater compliance efforts through FY2018 with $409,447 remaining in Agreement No This remaining agreement amount has been designated for TOA No. 5, which includes additional permit provisions ordered by the SWRCB to be completed by the end of FY20 including but not limited to: trash assessment reporting for all NCTD facilities and transit stations and total maximum daily load implementation requirements that have been incorporated into Appendix G of the MS4 Permit. Based on the foregoing, NCTD is requesting the Board authorize the Executive Director to execute TOA No. 5 to TRC Solutions for year six (FY19) of the NCTD MS4 Permit in an amount not-to-exceed $409,447. ATTACHMENT: None June 21, 2018 Board Meeting Staff Report No.: SR

47 GOAL/STRATEGIC DIRECTION: FISCAL IMPACT: COMMITTEE REVIEW: STAFF CONTACT: Legal, Regulatory and Policy Compliance The FY19 fiscal impact of Task Order 5 for MS4 Permit compliance is estimated to be $400,000 and is funded in the FY19 Operating Budget accounts No * from non-federal Transit Administration (FTA) grant funds. The remaining balance of $9,447 in Task Order 5 will be budgeted in the FY20 fiscal year. None Lori A. Winfree, General Counsel lwinfree@nctd.org Phone: June 21, 2018 Board Meeting Staff Report No.: SR

48 Agenda Item # 7 RATIFY SUPPLEMENTAL AGREEMENT NO. 04 TO AGREEMENT NO WITH BANK OF AMERICA, N.A. FOR BANKING SERVICES STAFF RECOMMENDATION: BACKGROUND INFORMATION: Time Sensitive: Consent: Ratify Supplemental Agreement No. 04 to Agreement No with Bank of America, N.A. for banking services in an amount not-to-exceed $75, On April 19, 2018, the North County Transit District (NCTD) Board of Directors (Board) authorized the Executive Director to award Agreement No with JP Morgan Chase Bank, N.A. for banking services beginning June 1, To support the successful transition of banking services from Bank of America, N.A. (BofA), an overlap of services is recommended to allow sufficient time for the following: Clearing of suppliers outstanding checks; Customers to change their systems with the new bank information to transmit wires and direct deposits; Merchant services to change bank information for credit card settlements; and NCTD to coordinate with its armored services so deposits are redirected to the new accounts. Agreement No with BofA provides for depositary accounts, money market accounts, and corporate credit cards for business and travel expenses and expired on June 16, The sixteen (16) day transition period was insufficient to fully test the functionality of the services provided by JP Morgan Chase N.A. A two-month extension of Agreement No with BofA is needed to support a seamless transition. Section 3 of the BofA Agreement states that: the Agreement may not be extended without the approval of NCTD s Board of Directors and the bank. On April 4, 2013, the Board authorized the Executive Director to award Agreement No with BofA to provide banking services for a five-year term with the cost of treasury services not-to-exceed $198,000. Bank fees are automatically deducted monthly from NCTD accounts and charges are offset by balances maintained in the depositary accounts. To date, NCTD has been charged $257, Supplemental Agreement No. 04 increases the agreement to reflect actual fees paid to date and the anticipated need to cover a two-month extension for a total contract amount of $273, In accordance with NCTD Board Policy No. 19 and Public Contract Code (PCC) section 22050, the Executive Director has the authority to execute a contract when it is determined by the Executive Director that either an emergency or an exigent circumstance exists. On June 8 th, 2018, the Executive Director declared the existence of exigency, and authorized staff to advance procurement actions to obtain the services necessary to mitigate financial risk to the District. Pursuant June 21, 2018 Board Meeting Staff Report No.: SR

49 to Board Policy No. 19 and PCC 22050, the Executive Director is required to notify the Board of Directors at its next public meeting of any contract action where the competitive bidding process was waived due to exigent or emergency circumstances and seek ratification. For the foregoing reasons, staff recommends the Board ratify Supplemental Agreement No. 04 to Agreement No with Bank of America, N.A. for banking services in an amount not-to-exceed $75, ATTACHMENT: GOAL/STRATEGIC DIRECTION: FISCAL IMPACT: COMMITTEE REVIEW: STAFF CONTACT: None Improve Financial Health The total fiscal impact of this proposed contract action is $75, which is funded with non-federal dollars in operating accounts *. There is no fiscal impact for FY2018 since the budget had been adjusted accordingly. The FY2019 operating budget expenditures of $8,000 will be adjusted accordingly. None Eun Park-Lynch, Interim Chief Financial Officer Phone: June 21, 2018 Board Meeting Staff Report No.: SR

50 Agenda Item # 8 RECEIVE QUARTERLY TRANSIT OPERATIONS PERFORMANCE REPORT STAFF RECOMMENDATION: BACKGROUND INFORMATION: Time Sensitive: Consent: Receive the Quarterly Transit Operations Performance Report for the Third Quarter of Fiscal Year 2018 The Transit Planning and Bus Operations Division's responsibility is to plan, design, schedule and monitor the North County Transit District's (NCTD) transit services. The Planning Department is also responsible for coordination with the San Diego Association of Governments (SANDAG) and local governments to promote transit service, determine locations for bus stops, influence development to be transit supportive, and facilitate capital project planning and permitting. The Planning function supports Bus Operations, Rail Operations and Development Services Divisions. The Transit Planning and Bus Operations Division is providing this Transit Operations Performance Report for the Third Quarter of FY ATTACHMENT: 8A Transit Operations Performance Report, Q3 FY 2018 GOAL/STRATEGIC DIRECTION: FISCAL IMPACT: COMMITTEE REVIEW: STAFF CONTACT: Accountability and Performance Management This staff report has no fiscal impact. None Damon Blythe, Chief Operations Officer-Transit Planning & Bus Operations dblythe@nctd.org Phone: June 21, 2018 Board Meeting Staff Report No.: SR

51 ATTACHMENT 8A Transit Operations Quarterly Report For the Period January 1, 2018 March 31, 2018 (Q3 of FY18) Page 1 of 46

52 Contents Executive Summary... 3 Key Performance Indicators... 6 Ridership Farebox Recovery On-Time Performance NCTD Customer Feedback Paratransit and Fixed-Route Wheelchair Usage Fare Collection System Appendix A: BREEZE Descriptions and Service Statistics Appendix B: BREEZE Composite Rankings by Day Type Appendix C: October Service Change Ridership Trends Appendix D: COASTER & SPRINTER Quarterly Performance Page 2 of 46

53 EXECUTIVE SUMMARY NCTD produces the Transit Operations Quarterly Report (TOPR) to provide information regarding operational performance. The data contained in this report for Fiscal Year 2018 (FY18) is unaudited and subject to change. Final and audited financial and performance results will be provided as part of NCTD s Comprehensive Annual Financial Report. In October 2017, NCTD conducted its first major service change in recent years with the elimination of six BREEZE routes and modification of other routes. NCTD reduced average weekday revenue miles by nearly 8% and average weekday revenue hours by over 6% while only seeing a decrease in total BREEZE ridership of 2% from FY17 Q3 to FY18 Q3. Year to date, system ridership declined by 3.5% compared to the previous year. The following provides an overview of key performance indicators compared to FY17: Ridership and Productivity Compared to Q3 FY17, ridership in Q3 FY18: Decreased by 3.2% on BREEZE Increased by 2.9% on COASTER Decreased by 2% on SPRINTER Increased by 45.6% on FLEX Decreased by 3.7% on LIFT Compared to Q3 FY17, boardings per revenue hour in Q3 FY18: Increased by 5.9% on BREEZE Increased by 4% on COASTER Decreased by 1.9% on SPRINTER Decreased by 44.5% on FLEX Decreased by 1.6% on LIFT Farebox Recovery Compared to Q3 FY17, farebox recovery in Q3 FY18 Increased from 12.67% to 13.63% on BREEZE Decreased from 30.63% to 25.75% on COASTER Decreased from 15.35% to 11.35% on SPRINTER Increased from 11.87% to 15.41% on FLEX Increased from 6.94% to 7.79% on LIFT On-Time Performance Compared to Q3 FY17, on-time performance in Q3 FY18: Decreased by 0.5% on BREEZE Increased by 2.4% on COASTER Decreased by 0.2% on SPRINTER Increased by 1.3% on FLEX Increased by 7.1% on LIFT Page 3 of 46

54 These trends are consistent with national transit ridership decline. The trend is influenced by both operational factors and external market factors. Market conditions include the growing popularity of transportation network companies (TNCs) like Uber and Lyft, low unemployment, and increased automobile sales. Operational factors, such as on-time performance, reliability, and missed trips also impact ridership. In FY18, NCTD took proactive steps to address declining ridership and customer revenue trends. Actions include: 1. Implementation of Board approved route changes, which went into effect on October 8, These changes improved productivity and have resulted in increased ridership on certain BREEZE routes. This Q3 TOPR will provide information about the continued impact of these major service changes. Additional service changes to improve on-time performance and connections with other services went into effect on April 1, 2018 and are not captured in FY18 Q3 data. 2. Engaging with COASTER customers via survey to garner feedback about NCTD s services. NCTD is also working with SANDAG to complete a public opinion survey for transit in the region. 3. Initiated project planning and received grant funding for a Comprehensive Operations Analysis (COA) an in-depth study of NCTD s modes that will guide future service levels, design, and implementation. NCTD also received a grant to support a Land Use and Transit Integration Study that will serve as a precursor to the COA. The land use study will inventory and analyze existing land use, planning conditions, gaps between land use and mobility, and strategies to address these gaps. The following graph shows the distribution of system resources (revenue hours and operating costs) compared to quarterly ridership and fare revenue. Page 4 of 46

55 Graph 1: System Distribution of Resources BREEZE SPRINTER COASTER FLEX LIFT Q3 Ridership 61% 24% 13% 0.3% 2% 3% Q3 Revenue Hours 73% 4% 1% 19% Annual Budgeted Operating Cost 50% 21% 17% 1% 11% Annual Budgeted Fare Revenue 39% 17% 39% 0.3% 5% Page 5 of 46

56 KEY PERFORMANCE INDICATORS NCTD s performance is impacted by both internal and external factors. External factors include but are not limited to: the number of weekdays, number of days of inclement weather, number of railroad closures, the unemployment rate, and average cost of gasoline. The number of weekdays can be a major contributing factor to change in total ridership because the average ridership on Saturday or Sunday is nearly half of average ridership on weekdays. For instance, the average number of weekday boardings in FY18 Q3 was approximately 34,000, about 1.3% of total boardings for the quarter. The table below provides information regarding these key factors. Table 1 External Factors External Factors FY17 Q3 FY18 Q3 Variance Weekdays Days of Inclement Weather Rail Construction Shutdown Days Unemployment Rate 4.4% 3.4% -1% Average Cost of Gallon of Gasoline $2.88 $3.34 $0.46 These factors have varying degrees of influence on ridership. It is also important to note that overall transit ridership on a national basis is trending downward, as indicated in the ridership graph from the National Transit Database below. Graph 2 Total Annual Transit Ridership Graph 1: Five-year national trend for total transit ridership from May to April. Data includes rail and rural transit service. Source: National Transit Database June NCTD regularly monitors its performance to help manage service quality, efficiency, and cost effectiveness. The following section provides an overview of key indicators used for Page 6 of 46

57 performance monitoring. Tables 1 through 5 shows the quarterly and year-to-date performance by mode compared to FY17 and NCTD s established performance goals. Total Boarding Riders the total boardings on the mode. The goal for total boarding riders is an allocation of the yearly budget, based on historical trends from past fiscal years. Average Weekday Riders the weekday boardings per the total number of weekdays of the period. The goal is derived from the budget and the historical percentage of weekday boardings. Boardings per Revenue Hour the total boardings divided by the total revenue hours. The goal is derived from the budget. Percent of Service Operated the percent of scheduled service that was actually operated. The goal is derived from contractual requirements with operators. On-time Performance the percent of service that was on-time. The goal is derived from contractual requirements with operators. Major Mechanical Failures - the number of system failures that prevent the vehicle from safely completing the trip it is currently operating or from starting the next assigned trip. The goal is derived from contractual requirements with operators. In order to clearly illustrate the number of mechanical failures occurring in various modes, NCTD has decided to transition from the performance metric of Miles Between Mechanical Failure to the National Transit Database (NTD) metric of Major Mechanical Failures and Other Mechanical Failures. These metrics constitute failures of mechanical systems onboard the vehicle that prevent the vehicle from completing the trip or from starting the next assigned trip. Other Mechanical Failures - the number of system failures that NCTD has deemed that the vehicle should not continue en-route but do not prevent the vehicle from operating safely (for example farebox malfunctioning or a radio that is inoperable). Chargeable Accidents per 100,000 Miles The number of preventable accidents per 100,000 miles where the operator was at fault. The goal is derived from contractual requirements with operators. Passenger Concerns per 100,000 Boardings - The number of valid passenger concerns per 100,000 boardings. The goal is derived from contractual requirements with operators. Call Response Time The average length that a customer is on hold to contact LIFT. The goal is derived from contractual requirements with operators. Page 7 of 46

58 Average Length of the Call The average length that a customer is on the phone when calling LIFT. The goal of 2:00 has been identified but the call should last as long as is needed to provide exceptional customer service. Table 2 BREEZE Performance BREEZE Quarterly Performance Goal FY17 Q3 FY18 Q3 Variance Variance From Goal Total Boarding Riders 1,635, ,613, ,562,070.0 (3.2%) (4.5%) Average Weekday Boarding Riders 21, , ,509.8 (2.6%) (5.5%) Boardings per Revenue Hour % (25.8%) Percent of Scheduled Service Operated 100.0% 99.9% 99.9% 0.1% (0.1%) On-time Performance 90.0% 90.0% 89.6% (0.5%) (0.5%) Major Mechanical Failures (14.7%) (3.5%) Other Mechanical Failures % 600.0% Chargeable Accidents per 100,000 Miles % 32.3% Passenger Concerns per 100,000 Boardings % 0.5% BREEZE Year to Date Performance Goal FY17 FY18 Variance Variance From Goal Total Boarding Riders 5,037, ,047, ,778,943.0 (5.3%) (5.1%) Average Weekday Boarding Riders 22, , ,789.8 (4.7%) (6.0%) Boardings per Revenue Hour (0.6%) (27.2%) Percent of Scheduled Service Operated 99.8% 99.9% 99.9% 0.0% 0.1% On-time Performance 90.0% 89.3% 89.0% (0.3%) (1.1%) Major Mechanical Failures % 21.4% Other Mechanical Failures ,500.0% 1,500.0% Chargeable Accidents per 100,000 Miles % 41.2% Passenger Concerns per 100,000 Boardings % 6.5% In FY18 Q3, BREEZE ridership declined 3.2% compared to the previous fiscal year. Year to date, ridership has declined 5.3%. Boardings per revenue hour have increased compared to FY17 Q3, largely due to the decrease in approximately 6.6% of revenue hours associated with the October 2017 service changes. Year to date, boardings per revenue hour have remained relatively constant. Appendix A provides an overview of BREEZE routes and service characteristics. A composite ranking of individual BREEZE routes by service day type (Weekday, Saturday, Sunday) is available in Appendix B. A discussion of the key ridership trends since the October 2017 BREEZE service changes is available in Appendix C. Page 8 of 46

59 Table 3 LIFT Performance LIFT Quarterly Performance Goal FY17 Q3 FY18 Q3 Variance Variance From Goal Total Boarding Riders 50, , ,193.0 (3.7%) (8.3%) Average Weekday Boarding Riders (2.7%) (8.7%) Boardings per Revenue Hour (1.6%) (3.3%) On-time Performance 92.0% 88.4% 94.7% 7.1% 3.0% Call Response Time (minutes) 2:00 4:16 1:32 (64.0%) (23.1%) Average Length of Call (minutes) 2:00 1:59 2: % 32.8% Major Mechanical Failures % 206.6% Other Mechanical Failures % 0.0% Chargeable Accidents per 100,000 Miles % 10.5% Passenger Concerns per 1,000 Boardings % 19.8% LIFT Year to Date Performance Goal FY17 FY18 Variance Variance From Goal Total Boarding Riders 152, , ,026.0 (8.3%) (8.0%) Average Weekday Boarding Riders (8.5%) (9.6%) Boardings per Revenue Hour (5.9%) (5.9%) On-time Performance 92.0% 90.9% 91.8% 1.0% (0.2%) Call Response Time (minutes) 2:00 3:15 2:42 (17.0%) 35.1% Average Length of Call (minutes) 2:00 1:58 2: % 40.4% Major Mechanical Failures % 132.6% Other Mechanical Failures % 0.0% Chargeable Accidents per 100,000 Miles % (20.0%) Passenger Concerns per 1,000 Boardings % 82.3% In FY18 Q3, LIFT ridership declined 3.7% compared to the previous fiscal year. Year to date, ridership has declined 8.3%. Boardings per revenue hour have remained relatively constant compared to the previous year. Page 9 of 46

60 Table 4 FLEX Performance FLEX Quarterly Performance Goal FY17 Q3 FY18 Q3 Variance Variance From Goal Total Boarding Riders 4, , , % 52.4% Average Weekday Boarding Riders % 25.9% Boardings per Revenue Hour (44.5%) 1.3% On-time Performance 95.0% 97.8% 99.1% 1.3% 4.3% Major Mechanical Failures % 348.5% Other Mechanical Failures % 200.0% Chargeable Accidents per 100,000 Miles % (100.0%) Passenger Concerns per 1,000 Boardings (81.3%) (20.7%) FLEX Year to Date Performance Goal FY17 FY18 Variance Variance From Goal Total Boarding Riders 15, , , % 27.8% Average Weekday Boarding Riders % 13.2% Boardings per Revenue Hour (36.6%) (6.4%) On-time Performance 95.0% 98.0% 98.7% 0.7% 3.8% Major Mechanical Failures % 258.1% Other Mechanical Failures % 300.0% Chargeable Accidents per 100,000 Miles % (47.0%) Passenger Concerns per 1,000 Boardings (20.9%) 149.2% In FY18 Q3, FLEX ridership increased 45.6% compared to the previous fiscal year, largely due to the conversion of two BREEZE routes to FLEX routes. Year to date, ridership has increased 26.3%. Boardings per revenue hour have decreased compared to the previous year. Page 10 of 46

61 Table 5 COASTER Performance COASTER Quarterly Performance Goal FY17 Q3 FY18 Q3 Variance Variance From Goal Total Boarding Riders 317, , , % 2.8% Average Weekday Boarding Riders 4, , , % 3.6% Boardings per Revenue Hour % 10.1% Percent of Scheduled Service Operated 100.0% 99.1% 99.8% 0.7% (0.2%) On-time Performance 95.0% 88.8% 90.9% 2.4% (4.3%) Major Mechanical Failures (20.0%) 129.6% Other Mechanical Failures (100.0%) 0.0% Chargeable Accidents per 100,000 Miles % (100.0%) Passenger Concerns per 100,000 Boardings (31.3%) 26.9% COASTER Year to Date Performance Goal FY17 FY18 Variance Variance From Goal Total Boarding Riders 1,078, ,077, ,057,725.0 (1.81%) (1.97%) Average Weekday Boarding Riders 4, , ,869.9 (0.51%) (1.18%) Boardings per Revenue Hour (1.27%) (0.99%) Percent of Scheduled Service Operated 100.0% 99.4% 99.7% 0.27% (0.34%) On-time Performance 95.0% 91.7% 90.5% (1.39%) (4.77%) Major Mechanical Failures % % Other Mechanical Failures (50.00%) % Chargeable Accidents per 100,000 Miles % (100.00%) Passenger Concerns per 100,000 Boardings % % In FY18 Q3, COASTER ridership increased 2.9% compared to the previous fiscal year. Year to date, ridership has decreased 1.8%. Compared to FY17 Q3, boardings per revenue hour have increased by 4%. Additional COASTER performance indicators by service day type (Weekday, Saturday, Sunday) are available in Appendix D. Page 11 of 46

62 Table 6 SPRINTER Performance SPRINTER Quarterly Performance Goal FY17 Q3 FY18 Q3 Variance Variance From Goal Total Boarding Riders 622, , ,350.0 (2.0%) (1.6%) Average Weekday Boarding Riders 8, , , % (1.1%) Boardings per Revenue Hour (1.9%) (1.4%) Percent of Scheduled Service Operated 100.0% 99.9% 99.8% (0.1%) (0.2%) On-time Performance 98.0% 98.4% 98.2% (0.2%) 0.2% Major Mechanical Failures % 1,262.4% Other Mechanical Failures % 1,200.0% Chargeable Accidents per 100,000 Miles % (100.0%) Passenger Concerns per 100,000 Boardings % 89.4% SPRINTER Year to Date Performance Goal FY17 FY18 Variance Variance From Goal Total Boarding Riders 1,900, ,916, ,925, % 1.3% Average Weekday Boarding Riders 8, , , % 1.0% Boardings per Revenue Hour % 1.4% Percent of Scheduled Service Operated 100.0% 99.7% 99.6% (0.0%) (0.4%) On-time Performance 98.0% 97.8% 98.1% 0.3% 0.1% Major Mechanical Failures % 1,376.9% Other Mechanical Failures % 4,500.0% Chargeable Accidents per 100,000 Miles % (100.0%) Passenger Concerns per 100,000 Boardings % 27.8% In FY18 Q3, SPRINTER ridership increased 2% compared to the previous fiscal year. Year to date, ridership has increased 0.5%. Compared to FY17 Q3, boardings per revenue hour have decreased by 2%. Additional SPRINTER performance indicators by service day type (Weekday, Saturday, Sunday) are available in Appendix D. Page 12 of 46

63 RIDERSHIP System-Wide Ridership Overall, system ridership (BREEZE, SPRINTER, COASTER, LIFT, and FLEX) was down by 2.06% in FY18 Q3 as compared to FY17 Q3. Average weekday ridership was also down by 0.93% from FY17 Q3. This trend is an improvement compared to Quarters 1 and 2, indicating that the ridership decline may be slowing. FY18 Q2 ridership was 2.62% less than FY17 Q2, and FY 18 Q1 ridership was 5.62% less than FY17 Q1. Table 7 Systemwide Ridership Comparison System-Wide Ridership Systemwide Quarterly Performance Goal FY17 Q3 FY18 Q3 Variance Variance From Goal Total 2,630,709 2,608,275 2,554,651 (2.06%) (2.89%) Average Weekday 35,149 34,313 33,994 (0.93%) (3.29%) System-Wide Ridership Systemwide Year to Date Performance Goal FY17 FY18 Variance Variance From Goal Total 8,184,886 8,210,108 7,921,984 (3.51%) (3.21%) Average Weekday 36,180 35,794 34,844 (2.65%) (3.69%) The following section provides information on modal ridership trends and potential factors impacting ridership. Key trends include: BREEZE ridership decreased in FY18 Q3 by 3.2% compared to FY17 Q3. SPRINTER ridership decreased in FY18 Q3 by 2% compared to FY17 Q3. COASTER ridership increased in FY18 Q3 by 2.9% compared to FY17 Q3. FLEX ridership increased in FY18 Q3 by 45.6% compared to FY17 Q3. LIFT ridership decreased in FY18 Q3 by 3.7% compared to FY17 Q3. The graphs below compare the distribution of ridership and revenue hours by mode. BREEZE service transported the bulk of the system ridership (61%) followed by SPRINTER (24%), COASTER (12.8%), LIFT (1.8%), and FLEX (0.3%). BREEZE comprises the most revenue hours (73%) followed by LIFT (19%), SPRINTER (4%), FLEX (3%), and COASTER (1%). Page 13 of 46

64 Graph 3 NCTD System Ridership by Mode and System Revenue Hours Ridership LIFT 1.81% FLEX 0.30% Revenue Hours FLEX 3% LIFT 19% SPRINTER 23.97% SPRINTER 4% COASTER 12.78% BREEZE 61.15% COASTER 1% BREEZE 73% BREEZE COASTER SPRINTER LIFT FLEX BREEZE COASTER SPRINTER LIFT FLEX Graph 4: FY17 vs FY18 Q3 Systemwide Ridership by Month FY17 vs FY18 Q3 Ridership by Month 1,800,000 1,600,000 1,400,000 1,200,000 1,000, , , , ,000 - FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 BREEZE SPRINTER COASTER LIFT FLEX January February March Page 14 of 46

65 BREEZE Ridership BREEZE bus ridership for FY18 Q3 totaled 1,562,070 - a decrease of 3.16% compared to FY17 Q3. Average weekday ridership for FY18 Q3 was 20,510, a decrease of 2.64%. BREEZE ridership increased by 2.18% in January but declined in February and March. The 9.10% ridership decline in March may be attributed to several factors. March 2018 had one fewer weekday than March 2017, which resulted in a decline of 10,000-15,000 riders for the month. Spring Break was also more concentrated in March 2018 than 2017, reducing the number of student boardings. Table 8 BREEZE Ridership Comparison BREEZE Total Ridership January February March Q3 FY17 495, , ,997 1,613,022 FY18 506, , ,229 1,562,070 Variance 2.18% (1.36%) (9.10%) (3.16%) BREEZE Average Weekday Ridership January February March Q3 FY17 18,747 21,849 22,603 21,006 FY18 19,192 21,413 21,007 20,510 Variance 2.37% (2.00%) (7.06%) (2.64%) In October 2017, NCTD conducted its first major service change in recent years with the elimination of six BREEZE routes and modification of other routes. NCTD reduced average weekday revenue miles by nearly 8% and average weekday revenue hours by over 6% while only seeing a decrease in total BREEZE ridership of 3% from FY17 Q3 to FY18 Q3. This is an improvement from the 4% decrease in Q2 when the changes took effect. NCTD proactively eliminated unproductive service with minimal impact to ridership. The majority of route changes resulted in a positive increase in average weekday ridership; if the changes were not implemented, average weekday ridership loss would have likely exceeded the 2.64% decrease seen in Q3. As customers continue to learn the new system and staff emphasize inter-modal connectivity with scheduling, BREEZE ridership is expected to increase. An overview of route-level ridership trends associated with the October service changes is included in Appendix C. Page 15 of 46

66 LIFT Ridership LIFT ADA Paratransit ridership decreased by 3.67% from 47,954 in FY17 Q3 to 46,193 in FY18 Q3. Due to the discontinuation of certain BREEZE routes, the ADA paratransit boundary was reduced. NCTD also implemented policy changes that may have impacted ridership, including new policies on reservations, cancellations, and pickup windows. LIFT ridership may also be declining due to changes in the administration of Medi-CAL that require service insurance providers to provide eligible trips. Table 9 LIFT Ridership Comparison LIFT Total Ridership January February March Quarter 3 FY17 15,823 14,822 17,309 47,954 FY18 15,384 15,002 15,807 46,193 Variance (2.77%) 1.21% (8.68%) (3.67%) LIFT Average Weekday Ridership January February March Quarter 3 FY FY Variance (2.44%) 0.72% (5.78%) (2.67%) FLEX Ridership FLEX ridership increased by 45.62% over FY17 Q3, largely due to the introduction of FLEX 392 and 395 (BREEZE Routes 392 and 395 were modified and converted to FLEX routes on October 8 th, 2017). These routes operate as deviated fixed-routes that will flex, or deviate, ¾ mile from the route. In addition to replacing BREEZE routes on Camp Pendleton, FLEX 392 and 395 gained additional ridership through replacing paratransit trips on Camp Pendleton. FLEX routes 373 and 374 were eliminated with the October service change. Table 10 FLEX Ridership Comparison FLEX Total Ridership January February March Q3 FY17 1,531 1,707 1,959 5,197 FY18 2,737 2,318 2,513 7,568 Variance 78.77% 35.79% 28.28% 45.62% FLEX Average Weekday Ridership January February March Q3 FY FY Variance 44.02% 9.61% 16.18% 22.20% Page 16 of 46

67 COASTER Ridership COASTER recorded 326,470 boardings for FY18 Q3, an increase of 2.92% compared to the prior year s Q3. Average weekday ridership increased 5.33% compared to FY17 Q3. Table 11 COASTER Ridership Comparison COASTER Total Ridership January February March Quarter 3 FY17 100,453 97, , ,202 FY18 108, , , ,470 Variance 7.87% 4.55% (2.55%) 2.92% COASTER Average Weekday Ridership January February March Quarter 3 FY17 3,840 4,503 4,951 4,437 FY18 4,427 4,637 4,955 4,674 Variance 15.28% 2.97% 0.07% 5.33% Table 12 Average Weekday COASTER Ridership by Rail Station Average Weekday COASTER Ridership by Rail Station Rail Station FY17 Quarter 3 FY18 Quarter 3 Variance Oceanside Transit Center (4.37%) Carlsbad Village Station % Carlsbad Poinsettia Station (2.81%) Encinitas Station (1.17%) Solana Beach Station (0.61%) Sorrento Valley Station (4.66%) San Diego - Old Town % San Diego - Santa Fe Depot 1,102 1, % The San Diego Old Town Station had the highest increase in ridership at 10.23%, followed by Santa Fe Depot at 7.35% and Carlsbad Poinsettia Station at 4.74%. Sorrento Valley COASTER Connection service is operated by SDMTS based on an MOU between the two agencies and supports connection to major employers from the Sorrento Valley COASTER rail station. Total ridership on these routes has decreased since FY17 Quarter 3, along with COASTER ridership to Sorrento Valley Station. Page 17 of 46

68 Table 13 Sorrento Valley COASTER Connection Total Ridership Route FY17 Quarter 3 FY18 Quarter 3 Variance 972 7,971 7,859 (1.41%) 973 7,368 5,495 (25.42%) 978 6,211 4,708 (24.20%) 979 4,805 3,994 (16.88%) Total 26,355 22,056 (16.31%) Table 14 Sorrento Valley COASTER Connection Average Weekday Ridership Route FY17 Quarter 3 FY18 Quarter 3 Variance (0.40%) (28.76%) (20.62%) (9.45%) Total (14.74%) Page 18 of 46

69 SPRINTER Ridership SPRINTER recorded 612,350 boardings for FY18 Q3, a decrease of 2.01% compared to FY17 Q3. The month of March had one fewer weekday in FY18 than FY17, which explains most of the ridership loss. Average weekday ridership remained the same, at 8,069 compared to FY17 Q3. SPRINTER stations with the largest declines in ridership include Rancho Del Oro Station, Buena Creek Station, and College Blvd Station. SPRINTER stations with the largest gains include Vista Civic Center Station, San Marcos Civic Center Station, and El Camino Real Station. Table 15 Monthly SPRINTER ridership Total Ridership January February March Quarter 3 FY17 183, , , ,900 FY18 191, , , ,350 Variance 4.30% 1.63% (10.08%) (2.01%) Average Weekday Ridership January February March Quarter 3 FY17 6,582 8,816 8,841 8,069 FY18 7,148 8,910 8,225 8,069 Variance 8.60% 1.07% (6.97%) 0.00% Table 16 Average Weekday SPRINTER Ridership by Rail Station Rail Station FY17 Quarter 3 FY18 Quarter 3 Variance Oceanside Transit Center % Coast highway Station (6.70%) Crouch Street Station (4.29%) El Camino Real Station % Rancho Del Oro Station (12.49%) College Boulevard Station (8.22%) Melrose Station (8.34%) Vista Transit Center 1,228 1,180 (3.94%) Vista Civic Center Station % Buena Creek Station (9.03%) Palomar College Station % San Marcos Civic Center Station % Cal State San Marcos Station % Nordahl Road Station (4.59%) Escondido Transit Center 1,606 1,594 (0.75%) Page 19 of 46

70 SPRINTER ridership was enhanced through the LCTOP, which is funded by Cap and Trade funds. The LCTOP provides a $25.00 discount for student passes on top of the discount NCTD provides for student passes. A full price monthly pass that would normally cost $59.00 would now cost between $19.00-$24.00 for students due to the incentives. NCTD sold a total of 3,762 passes through the LCTOP during FY18 Q3. The LCTOP program will end on June 30, 2018; moving forward, the LCTOP funds will be reallocated for the acquisition of Zero Emission Buses. Graph 5 LCTOP Ticket Sales by College Campus Palomar College - East 1% Vista Adult School 1% Palomar College - West 35% Cal State San Marcos 36% MiraCosta College Comm Learning Center 5% Mira Costa College 22% Page 20 of 46

71 FAREBOX RECOVERY Farebox recovery is the ratio of fare revenue divided by operating costs for each mode. Farebox recovery from FY17 Q3 to FY18 Q4 increased for BREEZE, LIFT, and FLEX, and decreased for COASTER and SPRINTER. The table below provides a comparison of mode-level farebox recovery to the previous fiscal year. Table 17: Farebox Recovery by Mode Farebox Recovery by Mode Mode FY2017 Quarter 3 FY2018 Quarter 3 Variance BREEZE 12.67% 13.63% 7.6% COASTER 30.63% 25.75% -15.9% SPRINTER 15.35% 11.35% -26.1% FLEX 11.87% 15.41% 29.8% LIFT 6.94% 7.79% 12.2% FLEX had the largest increase in farebox recovery, from 11.87% in FY17 Q3 to 15.41% in FY18 Q3, a 29.86% increase. The increase is largely due to the conversion of BREEZE Routes 392 and 395 to FLEX. This service comes with a premium fare and allows for deviations to destinations within ¾ mile from the route. Although farebox recovery increased, the net cost per passenger increased by $10.24 to $ A major factor in the increased cost per passenger was due to staff s limited ability to predict how customers would use the new FLEX routes. Trip runtimes were increased to ensure connections would be made between Route 392 and Route 315 the more runtime on a trip usually equates to increased revenue hours or hours that are contractually billable. Based on on-time performance and runtime data, staff have reduced runtimes and as a result, revenue hours. Table 18 below shows the change in revenue hours, total miles, and the estimated difference in cost after April 1 st, 2018 on FLEX Routes 392 and 395. If ridership and fare revenue remain constant, farebox recovery is expected to increase to 18.2% and cost per passenger is expected to decrease to $ The cost per passenger is high compared to fixed-route modes, but FLEX 392 and 395 replaced paratransit service on much of Camp Pendleton and replaced two unproductive BREEZE routes while maintaining transit service to the areas. Table 18 Weekday Statistics and Cost Comparison after April Service Change for FLEX 392 and 395 Current Current After April Difference After April Cost Cost in cost Revenue Hours $1, $1, $ Total Miles $ $ $13.93 Total Cost $2, $2, $ Page 21 of 46

72 BREEZE farebox recovery improved from 12.67% in FY17 Q3 to 13.63% in FY18 Q3. Similar to FLEX, the improved farebox recovery for BREEZE can be attributed to route efficiency measures implemented in October LIFT also improved farebox recovery in Q3 from 6.94% in FY17 to 7.79% in FY18. The largest decline in farebox recovery in Q3 was SPRINTER, from 15.35% in FY17 to 11.35% in FY18. COASTER also declined in Q3 from 30.63% in FY17 to 25.75% in FY18. The decline in SPRINTER farebox recovery is partly due to the addition of train attendants in FY18, which increased operating costs. At the same time, the LCTOP program influenced SPRINTER farebox recovery; while the program may have increased pass sales (and ridership), the significantly lower priced passes decreased fare revenue. Page 22 of 46

73 ON-TIME PERFORMANCE NCTD has established on-time performance goals for each of its modes. The following is a summary of the modal performance compared with the District goal. BREEZE fixed-route on-time performance goal is 90%. FY18 Q3 performance was 89.6%. SPRINTER rail on-time performance goal is 98%. FY18 Q3 performance was 98.2%. COASTER rail on-time performance goal is 95%. FY18 Q3 performance was 90.9%. LIFT ADA Paratransit service on-time performance goal is 92%. FY18 Q3 performance was 94.7%. FLEX on-time performance goal is 95%. FY18 Q3 performance was 99.1%. BREEZE on-time performance held steady at nearly 90% from FY17 Q3 to FY18 Q3. NCTD changes BREEZE schedules twice a year (April and October) and scheduling staff conducted a running time analysis on many routes to improve on-time performance, with an expected improvement in Q4 after the April schedule change. COASTER on-time performance increased by 2.4% from FY17 Q3 but did not meet the district goal. The increase is a result of some construction projects nearing completion and slight adjustments to running time to accommodate for positive train control initialization. However, here are more than six (6) projects totaling $427 million under construction that are impacting COASTER operations. The construction impacts have resulted in railroad closures, longer travel times, and delays. Unfortunately, NCTD cannot eliminate all the construction delays. However, NCTD, SANDAG, and the construction contractors are working on strategies to minimize the impact of construction on train service. LIFT on-time performance improved by 7.1% in FY18 Q3 over FY17 Q3. NCTD implemented a policy change to on-time performance, which increased the on-time window from within 20-minutes to 30-minutes of the scheduled pick-up time. NCTD has also invested in technologies to improve the LIFT program, one of which is DriverMate, a program installed on a tablet inside the paratransit vehicle that improves communication between the vehicle and dispatch and utilizes Google Maps for improved directions. Ontime performance is expected to continue to improve as the paratransit contractor continues to gain more experience operating in North County. SPRINTER and FLEX exceeded their quarterly goals at 98.2% and 99.1% respectively. Page 23 of 46

74 NCTD CUSTOMER FEEDBACK The following graphs are presented to provide a summary of customer feedback received during the preceding fiscal year and preceding quarter. The graphs reflect the following informational categories: NCTD System Complaints this graph reflects the total number of complaints received during the reporting period, inclusive of both mode and non -mode related complaints. BREEZE, LIFT, FLEX, SPRINTER, COASTER Complaints each individual graph reflects the total complaints received for that respective mode of service. They each include a numerical breakdown of the specific nature of the complaints within that particular mode. Complaints by BREEZE Route per 100,000 riders, for the top six routes in terms of ridership during the reporting period. Compliments - this graph details the compliments received system wide during the reporting period. Compliments by BREEZE Route this graph provides further detail on BREEZE compliments by route received during the reporting period. For FY18 Q3, NCTD received a total of 540 complaints, an increase of 45 complaints compared to Q3 of FY17. Of the total complaints for FY18 Q3, 440 were directly associated with the five modes of transit (BREEZE, LIFT, FLEX, COASTER, and SPRINTER), an increase of 46 complaints as compared to FY17 Q3. All modes saw an increase in complaints except for COASTER and FLEX. Of note is the fact that the BREEZE service change in FY 2017 occurred in February while in FY 2018 it does not occur until April. Traditionally, the bi-annual BREEZE service change accounts for increased complaints and overall communication with customers. BREEZE operations generated the most complaints out of the five modes, receiving 267, an increase of 14 complaints compared to Q3 of FY17. Service Related (i.e., late service or vehicle pass by passenger) and Operator Related (i.e., perceived rude operator or operator driving performance) reports continue to comprise the vast majority of complaints, 93.6% of the total for BREEZE. NCTD staff continues to work closely with our BREEZE contractor, MV Transportation (MV), to identify the causality of these Service Related reports so that corrective actions can be taken. NCTD staff, in coordination with MV, continues to place an increased focus on decreasing Operator Related reports through operator training and reinforcement in order to increase customer service levels and create a positive riding experience. MV continues to implement their new customer service training program and is now focusing on specific operators. BREEZE also received 30 compliments and 14 comments. Page 24 of 46

75 LIFT received 83 complaints, an increase of 23 over the same quarter of FY17 (this is a decrease, however, from Quarters 1 and 2 of FY18). Service Related issues comprise the majority of complaints. MV continues to hone their scheduling process to maximize efficiencies. The majority of LIFT Operator Related complaints are due to driving performance as reported by civilian drivers and not due to negative interactions with LIFT passengers. Like BREEZE, MV is actively implementing their new customer service program beginning with the retraining of reservationists and dispatchers in order to create and maintain a positive customer experience as well as minimizing scheduling mistakes that impact service. Complaints regarding reservationists or dispatchers decreased from the same timeframe last year. LIFT also received 13 compliments and six (6) comments. FLEX received three (3) complaints, a decrease of eight (8) over the same quarter of FY17. As the nature of service for FLEX has changed from demand-response to deviated fixed-route, overall feedback has decreased. FLEX received one (1) compliment and zero comments. SPRINTER received 58 complaints, an increase of 29 over the same quarter of FY17. SPRINTER complaints were mostly related to late service caused by mechanical issues. NCTD and Bombardier are currently working through capital improvement projects that, over time, will stabilize the mechanical issues and increase performance levels. Further, with the addition of train attendants on board each train, Operator Related complaints increased. As this is a new program, Bombardier will continue to gather feedback and provide an on-going action plan for performance improvement as new lessons are learned. SPRINTER received two (2) compliments and one (1) comment. COASTER received 29 complaints, a decrease of 12 over the same quarter of FY17 and a significant decrease from Quarters 1 and 2 of FY18. The majority of complaints are related to late service. Service Related (late service) issues are attributable to continued Revenue Service Demonstration of Positive Train Control as well as issues related to the ongoing construction along the coastal railway. Bombardier continues to address specific equipment-related issues, including issues with on-board restrooms and climate control units, which should continue to decrease equipment-related complaints going forward. COASTER received four (4) compliments and 12 comments. Page 25 of 46

76 Graph 6 NCTD System Complaints by Type Comparing FY17 to FY NCTD System Complaints FY rd Quarter (495 total) vs FY rd Quarter (540 total) FY17 FY18 Graph 7 NCTD System Complaints - Percent to Total 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 32% 41% NCTD System Complaints - Percent to Total FY rd Quarter vs FY rd Quarter 26% 34% 12% 11% 12% 7% 8% 1% 3% 1% 3% 2% 2% 1% 2% 2% 0% 0% 0% 0% FY17 FY18 Page 26 of 46

77 Graph 8 BREEZE Complaints FY17 Q2 vs FY18 Q BREEZE Complaints FY rd Quarter (253 total) vs FY rd Quarter (267 total) Service Related Operator Related ADA Accident / Injury Other Passenger Related Equipment Title VI FY17 FY18 Graph 9 BREEZE Complaints - Percent to FY17 Q2 vs FY18 Q2 60.0% 50.0% 40.0% 46% 45% 39% BREEZE Complaints - Percent to Total FY rd Quarter vs FY rd Quarter 54% 30.0% 20.0% 10.0% 0.0% Service Related Operator Related 2% 2% 2% 3% 1% 1% 1% 0% 1% 0% 1% 0% ADA Accident / Injury Other Passenger Related Equipment Title VI FY17 FY18 Page 27 of 46

78 Graph 10 COASTER Complaints FY17 Q2 vs FY18 Q COASTER Complaints FY rd Quarter (41 total) vs FY rd Quarter (29 total) Other Equipment Service Related ADA Accident/Injury Operator Related FY17 FY18 Graph 11 COASTER Complaints - Percent to FY17 Q2 vs FY18 Q2 45.0% 40.0% 35.0% 30.0% COASTER Complaints - Percent to Total FY rd Quarter vs FY rd Quarter 29% 29% 41% 25.0% 20.0% 17% 22% 15.0% 10.0% 5.0% 0.0% 10% 10% 7% 7% 3% 5% 0% Other Equipment Service Related ADA Accident/Injury Operator Related FY17 FY18 Page 28 of 46

79 Graph 12 SPRINTER Complaints FY17 Q2 vs FY18 Q SPRINTER Complaints FY rd Quarter (29 total) vs FY rd Quarter (58 total) Equipment Other Service Related Passenger Related Operator Related FY17 FY18 Graph 13 SPRINTER Complaints - Percent to FY17 Q2 vs FY18 Q2 80.0% 70.0% 60.0% 69% SPRINTER Complaints - Percent to Total FY rd Quarter vs FY rd Quarter 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 43% 29% 17% 14% 9% 7% 3% 5% 3% Equipment Other Service Related Passenger Related Operator Related FY17 FY18 Page 29 of 46

80 Graph 14 LIFT Complaints FY17 Q2 vs FY18 Q2 LIFT Complaints FY rd Quarter (60 total) vs FY rd Quarter (83 total) FY17 FY18 Graph 15 LIFT Complaints - Percent to FY17 Q2 vs FY18 Q2 LIFT Complaints - Percent to Total FY rd Quarter vs FY rd Quarter 70.0% 60.0% 63% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 35% 30% 11% 18% 18% 15% 6% 2% 0% 0% 1% FY17 FY18 Page 30 of 46

81 Graph 16 LIFT FLEX FY17 Q2 vs FY18 Q2 FLEX Complaints FY rd Quarter (11 total) vs FY rd Quarter (3 total) Reservationist Other Operator Related Service Related FY17 FY18 Graph 17 FLEX Complaints - Percent to FY17 Q2 vs FY18 Q2 70% 60% FLEX Complaints - Percent to Total FY rd Quarter vs FY rd Quarter 67% 50% 40% 30% 33% 27% 27% 27% 20% 10% 0% 18% 0% 0% Reservationist Other Operator Related Service Related FY17 FY18 Page 31 of 46

82 Graph 18 Compliments FY17 Q2 vs FY18 Q2 Compliments FY rd Quarter (43 total) vs FY rd Quarter (55 total) BREEZE 7 3 Customer Service Other COASTER LIFT Planning Security SPRINTER Facilities FY17 FY18 Graph 19 Compliments by Route Compliments by BREEZE Route FY rd Quarter vs FY rd Quarter FY17 FY18 Page 32 of 46

83 * * *389 *392 * *446 PARATRANSIT AND FIXED-ROUTE WHEELCHAIR USAGE The following graphs and tables are presented to provide information on wheelchair usage on BREEZE service, major trip generators for the LIFT service, and LIFT trips by time of day. Increased wheelchair usage may be a contributing factor to decreased ontime performance. Tracking this metric allows NCTD to respond to routes that may experience significant delays. Route 303 recorded the most wheelchair boardings during Q3 for both FY17 and FY18 although it declined by over 200 wheelchair boardings in FY18 Q3 compared to FY17 Q3. Routes 301(101), 305, 315, 347, 350, 351, 352, 353, 354, and 357 saw a substantial increase in wheelchair boardings in FY18 Q3 compared to FY17 Q3. Table 19: Total Wheelchair Boardings by Route 1000 FY18 Q3 Total Wheelchair Boardings by Route Compared to FY17 Q3 *Indicates a Route that was eliminated or converted to FLEX on October 8 th, Wheelchair Ridership FY17 Wheelchair Ridership FY18 Page 33 of 46

84 * * *389 *392 * *446 Route 353 had the highest percentage of wheelchairs as a percentage of total ridership with 1.13%. Routes 301 (101), 302, 304, 305, 315, 318, 347, 350, 351, 352, 353, 354, 355, 356, 357, 358, 359, and 445 all show increased wheelchair boardings as a percentage of total boardings in FY18 Q3 compared to FY17 Q3. Table 20: Wheelchair Boardings as a Percentage of Total Ridership 0.80% FY18 Quarter 3 Wheelchair Boardings as a Percentage of Total Riderhsip Compared to FY17 Q3 *Indicates a Route that was eliminated or converted to FLEX on October 8 th, % 0.70% 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% Wheelchairs as % FY17 Wheelchairs as % FY18 Table 23 shows the BREEZE pass ups and ADA malfunctioning equipment for Q3 in FY17 and FY18. BREEZE operators reported a total of 15 wheelchair pass ups in FY18 Q3, a decrease of 17% from FY17 Q3. Wheelchair pass ups due to passengers refusing to vacate seats and wheelchair pass ups due to spaces full both increased by 2 occurrences from FY17 Q3. There were a total of 13 restraints that were reported as inoperable in FY18 Q3, an increase of 86% from FY17 Q3. Table 21: BREEZE Wheelchair Pass-Ups and ADA Malfunctioning Equipment FY17 Q3 FY18 Q3 Variance Operator Reported Pass Up Due to Spaces Full % Operator Reported Pass Up Due to Full Bus % Operator Reported Pass Up Due to Passenger Refusing to Vacate Seat % Operator Reported Pass Up Due to Ramp Defect 3 3 0% Operator Reported Total Pass Ups % Operator Reported Restraint Inoperable % Customer Service Complaint Reporting Priority Seating Unavailable % Customer Service Complaint Reporting Ramp Failure 0 0 0% Total Customer Service BREEZE ADA Complaints % Page 34 of 46

85 The top 20 LIFT origins and destinations are shown in Table 24. The most traveled to origin or destination is the Americare on Rancheros Drive in San Marcos. The facility is an adult day healthcare center where customers have access to recreational and social activities, meals, social services, therapy, and medical services. Dialysis centers made up 6 of the top 20 origin and destinations centers with a total of 5,634 trips starting or ending at dialysis facility in FY18 Q3. Table 22: Top LIFT Origins and Destinations Origin or Destination City # of Trips Starting or Ending AMERICARE RANCHEROS:340 RANCHEROS DR SAN MARCOS 3,752 GLENNER SAXONY:335 SAXONY RD ENCINITAS 2,133 REX INDUSTRY:1336 RANCHEROS DR SAN MARCOS 1,949 PWI:4059 OCEANSIDE BLVD OCEANSIDE 1,467 DIALYSIS-EL CAMINO REAL:2227 S EL CAMINO REAL OCEANSIDE 1,239 DIALYSIS-DAVITA ESCONDIDO:203 E 2ND AVE ESCONDIDO 1,143 DIALYSIS-VISTA WAY:3300 VISTA WAY OCEANSIDE 1,087 DIALYSIS-FMC HACIENDA:950 HACIENDA DR VISTA 1,074 GREAT PACES-WEST DR VISTA:1830 WEST DR VISTA 943 DIALYSIS-MONTIEL:2135 MONTIEL RD SAN MARCOS 720 UCP:205 W MISSION AVE ESCONDIDO 634 TRANSFER PT 08: LA JOLLA - MTS ACCESS LA JOLLA 600 TRANSFER PT 10: ESCONDIDO - MTS ACCESS ESCONDIDO 537 LIFE OF LIBERTY - HORNE ST:320 N HORNE ST OCEANSIDE 499 OCEANSIDE TRANSIT CENTER:235 S TREMONT ST OCEANSIDE 479 BRAILLE INSTITUTE:4555 EXECUTIVE DR SAN DIEGO 453 DIALYSIS-DAVITA ENCINITAS:332 SANTA FE DR ENCINITAS 371 CASA ESCONDIDO SENIOR APARTMENTS: 715 N BROADWAY ESCONDIDO 355 WILLIAMS QUEST CENTER:640 CIVIC CENTER DR VISTA 258 KNOLL SPECIALIZED CARE: 2000 WESTWOOD RD VISTA 250 Page 35 of 46

86 As shown in Table 25, The majority of LIFT trips are scheduled to occur between 2:00PM- 2:59PM followed by 7:00AM-8:59AM. LIFT is designed to be comparable and complementary to fixed-route service which is shown with nearly all LIFT trips (88.6%) scheduled for pickup between 7:00AM and 5:59PM, similar to when BREEZE is at full service. Table 23: LIFT Scheduled Trips Timeframe Trips Percent of Trips 3:00-3: % 4:00-4: % 5:00-5: % 6:00-6: % 7:00-7: % 8:00-8: % 9:00-9: % 10:00-10: % 11:00-11: % 12:00-12: % 1:00-1: % 2:00-2: % 3:00-3: % 4:00-4: % 5:00-5: % 6:00-6: % 7:00-7: % 8:00-8: % 9:00-9: % 10:00-10: % 11:00-11: % Page 36 of 46

87 FARE COLLECTION SYSTEM NCTD tracks performance related to the Fare Collection System, including Ticket Vending Machines (TVMs) and Rail Side Validators (RSVs) at all NCTD platforms. Each device is able to send an error message via Simple Network Management Protocol (SNMP) that is received by an internal data collection server. Service tickets are automatically submitted, and reports are generated based on the length of the error event, and a percentage of uptime is calculated during operating hours. Using this information, NCTD has developed a dashboard to show various statistics for the fare collection system. Since this is a newly developed monitoring system, we will only be providing 2018 Q3 statistics. TVM Availability This metric was designed to show TVM availability to NCTD customers, taking in to account any issues that would prevent customers from purchasing NCTD service. TVM availability for Q3 was over 98 percent. Average daily minutes out of service was twelve minutes. The majority of TVM service issues were related to cash fare payment (bills or coins). Graph 21: TVM Availability Graph 20: TVM Average Time Down Month TVM Average Daily Minutes Out of Service TVM Percent In Service January % February % March % Graph 22: TVM Out of Service Reasons FY18 Q3 TVM Out of Service: Reasons Payment Issue (Bills) Payment Issue (Coins) No Paper Ticket Issued TVM Issue (Device) CompassCard Issue Other Payment Issue (Credit/Debit) ,245 3,712 11,721 18,138 25, Minutes Page 37 of 46

88 APPENDIX A: BREEZE DESCRIPTIONS AND SERVICE STATISTICS Service Span Route Route Description Weekday Saturday Sunday BREEZE Core Route Route 302 Oceanside Transit Center-Vista Transit Center via Vista Way 4:10a-12:14a 5:08a-11:18p 5:08a-11:18p Route 303 Oceanside Transit Center-Vista Transit Center via Mission 4:02a-12:06a 4:33a-12:01a 4:33a-12:01a Route 332 Vista Transit Center-Buena Creek Station 4:34a-9:49p 6:04a-7:18p Route 350 Escondido Transit Center-Del Lago Station 4:23a-10:57p 6:03a-10:27p 6:03a-10:27p Route 351 Escondido Circulator via Grand Ave. then Washington Ave. 5:01a-10:58p 7:05a-9:48p 7:05a-9:48p Route 352 Escondido Circulator via Washington Ave. then Grand Ave. 3:55a-9:45p 5:11a-9:33p 5:11a-9:33p BREEZE Corridor Routes Route 301 (101) Oceanside Transit Center-University Town Center 5:07a-10:52p 5:05a-10:52p 5:05a-10:52p Route 304 Encinitas Station-Palomar College via Rancho Santa Fe 4:54a-9:04p 7:19a-9:03p Route 305 Escondido Transit Center-Vista Transit Center via Mission Ave. 4:11a-11:48p 5:12a-11:32p 5:12a-11:32p Route 308 Escondido Transit Center-Solana Beach Station via Del Dios Hwy. 5:03a-9:26p 6:33a-8:20p 6:33a-8:20p Route 309 Encinitas Station-San Luis Rey Transit Center via El Camino 4:01a-10:58p 5:29a-10:55p 5:29a-10:55p Route 315 Carlsbad Village Station-Camp Pendleton 4:21a-9:23p 6:14a-10:17p 6:14a-10:17p BREEZE Local Routes Route 313 Oceanside Transit Center-San Luis Transit Center via Mesa 5:39a-7:52p Route 318 Oceanside Transit Center-Vista Transit Center via Oceanside Blvd. 4:31a-8:00p 5:31a-7:52p Route 354 Escondido Transit Center-Orange Glen High School 5:16a-8:23p 8:33a-6:24p 8:33a-6:24p Route 355 Escondido Circulator via Valley Pkwy. then El Norte Pkwy. 6:04a-8:53p 6:35a-7:20p 6:35a-7:20p Route 356 Escondido Circulator via Morning View, El Norte & Escondido Blvd. 5:03a-9:22p 8:03a-5:54p Route 357 Escondido Circulator via El Norte Pkwy. then Valley Pkwy. 6:34a-6:18p 7:35a-8:18p 7:35a-8:18p Route 358 Escondido Circulator via El Norte Pkwy. then N. Broadway 6:03a-8:44p Route 359 Escondido Circulator via N. Broadway then El Norte Pkwy. 5:03a-7:45p BREEZE Local Small Vehicle Routes Route 323 College SPRINTER Station-Quarry Creek/Plaza Camino Real 5:13a-6:12p Route 325 Carlsbad Village Station-College SPRINTER Station 5:53a-7:31p 8:56a-5:59p Route 334 Vista Circulator 4:45a-7:52p 5:25a-6:30p Route 347 Cal State San Marcos-Palomar College 5:20a-7:37p 7:20a-7:12p Route 353 Escondido Transit Center-Nordahl Marketplace via ETC 5:39a-8:19p 5:39a-8:19p 5:39a-8:19p BREEZE Rural Routes Route 306 Vista Transit Center-Fallbrook 5:10a-9:53p 5:13a-8:48p 5:13a-8:48p Route 388 Escondido Transit Center-Pala Casino via Valley Center Rd. 5:06a-10:23p 5:06a-10:23p 5:06a-10:23p BREEZE Commuter Routes Route 311 San Luis Rey Transit Center-Rancho Del Oro SPRINTER Station AM&PM Peak Route 444 Carlsbad COASTER Connection via Faraday and Rutherford AM&PM Peak Route 445 Carlsbad COASTER Connection-Palomar College via AM&PM Peak Page 38 of 46

89 FY17 Quarter 3 vs FY18 Quarter 3 BREEZE Operating Statistics Weekday FY17 Quarter 3 FY18 Quarter 3 Difference Weekday Revenue Miles 17,179 15, % Weekday Total Miles 19,584 18, % Weekday Revenue Hours 1,521 1, % Weekday Total Hours 1,632 1, % Saturday FY17 Quarter 3 FY18 Quarter 3 Difference Saturday Revenue Miles 2,147 2, % Saturday Total Miles 2,347 2, % Saturday Revenue Hours % Saturday Total Hours % Sunday FY17 Quarter 3 FY18 Quarter 3 Difference Sunday Revenue Miles 1,922 1, % Sunday Total Miles 2,079 1, % Sunday Revenue Hours % Sunday Total Hours % Page 39 of 46

90 APPENDIX B: BREEZE COMPOSITE RANKINGS BY DAY TYPE NCTD s routes are classified into several categories as follows: Core Routes Core Routes provide high frequency service to high density areas. Corridor Routes Corridor Routes serve moderate and higher density travel corridors using primarily arterial streets to provide direct connections between communities that are not linked by the SPRINTER Local Routes Local Routes provide circulation within communities and should accommodate short-distance feeder trips to and from the SPRINTER and COASTER stations Local and Small Vehicle Routes Local and Small Vehicle Routes provide circulation within communities and should accommodate short-distance feeder trips to and from the SPRINTER and COASTER stations. The main difference from Local Routes is that Local and Small Vehicle Routes penetrate deeper into neighborhoods throughout the service area. Rural Routes Rural Routes provide access to areas outside of the urbanized area. These routes are funded in part by FTA 5311 funds. Commuter Routes Commuter Routes provide targeted service primarily between rail stations and major employment locations and other institutions. These routes focus on niche ridership markets and general do not require all-day service or constant service frequency. The characteristics (population density, employment density, street patterns, pedestrian access, and arterial speed limits) of the area in the immediate vicinity of a route help determine what type of category a route will be. The type of route helps determine the frequency, span of service, days of operation, and what type of vehicle will be on the route (small vehicle bus, 35 foot, or 40 foot bus). The following tables show the performance ranking of the routes. BREEZE routes are ranked by a composite score that incorporates key performance indicators such as boardings per mile, boardings per hour, net cost per passenger, and farebox recovery. Page 40 of 46

91 Weekday BREEZE Performance Route Service Tier Operating Cost Fully Burdened Cost Total Boardings Boardings per Mile Boardings per Hour Net Cost per Passenger Farebox Recovery Composite Score 354 Local $124,821 $239,420 7, $ % Core $623,489 $1,176, , $ % Core $275,611 $528,761 95, $ % /352 Core $236,845 $466,017 38, $ % Corridor $303,549 $569,554 97, $ % Rural $163,590 $289,246 46, $ % Rural $139,215 $242,223 12, $ % Local $91,956 $174,562 23, $ % Corridor $533,552 $966, , $ % /359 Local $53,395 $102,155 1, $ % Corridor $442,128 $801, , $ % Core $407,693 $767,023 94, $ % Local $57,356 $112,335 47, $ % /357 Local $89,054 $171,251 2, $ % Corridor $200,214 $359,717 44, $ % Corridor $141,029 $250,518 30, $ % Commuter $64,728 $118,724 13, $ % Local-Small Vehicle $52,920 $100,321 10, $ % Corridor $224,250 $414,482 45, $ % Core $312,539 $568,123 59, $ % Local $159,168 $290,968 29, $ % Commuter $14,743 $23,523 19, $ % Local-Small Vehicle Local-Small Vehicle Local-Small Vehicle Local-Small Vehicle $107,734 $208,233 $50,331 $96,739 $116,064 $226,074 $63,302 $115,387 17,940 73,123 13,903 5, $ % $ % $ % $ % Commuter $31,605 $54,333 12, $ % 0.83 Page 41 of 46

92 Saturday BREEZE Performance Route Service Tier Operating Cost Fully Burdened Cost Total Boardings Boardings per Mile Boardings per Hour Net Cost per Passenger Farebox Recovery Composite Score 354 Local $7,974 $15,256 1, $ % Core $80,182 $151,031 27, $ % Local $6,666 $12,940 2, $ % /352 Core $28,915 $57,110 1, $ % Rural $28,119 $48,862 2, $ % Corridor $50,504 $93,731 13, $ % Core $24,482 $47,455 5, $ % Core $51,111 $95,293 11, $ % Corridor $96,600 $173,520 21, $ % Rural $24,158 $42,894 4, $ % Corridor $20,933 $38,183 3, $ % Corridor $79,647 $145,708 13, $ % Corridor $22,404 $39,176 3, $ % Local-Small Vehicle $10,324 $19,868 7, $ % Local $22,131 $40,634 2, $ % Local-Small Vehicle $9,581 $17,830 1, $ % Core $10,460 $18,942 1, $ % /357 Local $9,291 $17,666 7, $ % Local-Small Vehicle $6,464 $12, $ % Corridor $38,359 $70,917 3, $ % Local-Small Vehicle $8,295 $15, $ % 0.79 Page 42 of 46

93 Sunday BREEZE Performance Route Service Tier Operating Cost Fully Burdened Cost Total Boardings Boardings per Mile Boardings per Hour Net Cost per Passenger Farebox Recovery Composite Score 303 Core $80,903 $152,506 26, $ % Core $24,482 $47,455 7, $ % /357 Local $9,169 $17,566 7, $ % Rural $27,972 $48, $ % /352 Core $27,506 $53,960 2, $ % Local $7,906 $15, $ % Corridor $49,764 $92,205 11, $ % Core $51,195 $95,197 11, $ % Corridor $50,034 $91,403 9, $ % Corridor $96,460 $173,721 17, $ % Rural $23,771 $42,242 3, $ % Local $7,169 $14,080 1, $ % Corridor $22,344 $39,043 2, $ % Corridor $38,139 $70,814 3, $ % Local-Small Vehicle $10,133 $19,464 6, $ % 0.89 Page 43 of 46

94 APPENDIX C: OCTOBER SERVICE CHANGE RIDERSHIP TRENDS NCTD has seen a positive increase in many of the routes that were modified during the October service change. Below are a few key ridership trends: Route 101 previously served UTC transit center during peak periods on weekdays only, with off-peak and weekend trips terminating over a one-mile walking distance west of UTC a major transit hub near shopping, retail, and employment. Since the alignment was made consistent with every trip serving UTC, daily weekday ridership in FY18 Quarter 3 increased by 89 boardings per day and Saturday ridership increased by 242 boardings per day compared to FY17 Quarter 3. Average Sunday ridership increased by 317 boardings per day over the same period. Route 302 had a different routing on Sunday. Due to Route 315 now serving Vista Way 7 days a week, Route 302 was rerouted to have consistent routing near Plaza Camino Real every day of the week. As a result, Sunday ridership increased by nine boardings per day from FY17 Quarter 3 to FY18 Quarter 3. Route 309 had numerous deviations that created confusion for customers on where the bus would be at certain times of the day. The route was streamlined in Carlsbad and ridership from FY17 Quarter 3 to FY18 Quarter 3 increased by 207 boardings per day on weekdays, 22 boardings per day on Saturdays, and 50 boardings per day on Sundays. It is expected that with an emphasis on rail connectivity at Encinitas and El Camino Real Stations and improved on-time performance, ridership will continue to grow after the service change in April Route 318 ridership decreased by 73 boardings per day from FY17 Quarter 3 to FY18 Quarter 3, which followed a ridership increase from Quarter 2. The route formerly operated sporadically with a frequency between every hour and every hour and twenty minutes. Frequency between Vista and Oceanside was standardized to every hour and a deviation was added to serve areas near Rancho Del Oro that were formerly served by Route 316. As customers become more accustomed to the improved frequency, ridership is expected to increase. Route 323 ridership decreased by 4 passengers per day from FY17 Quarter 3 to FY18 Quarter 3. This was expected with the discontinuation of midday service to Plaza Camino Real. As residents move into the development near Quarry Creek ridership is expected to increase. Route 315/325 were essentially combined the current route 325 operates a single variation of the former route and ends at College Boulevard Station to provide a one-seat ride between Camp Pendleton and Carlsbad, serving Mira Costa College and Plaza Camino Real. The northernmost section of the former Route 315 was also eliminated and replaced with a FLEX route. From FY17 Quarter 3 to FY18 Quarter 3, the combined Route 315 and 325 saw an increase of 79 boardings per day on weekdays, a decrease of 8 boardings per day on Saturdays, and an increase of 137 boardings per day on Sundays. Ridership is expected to increase as customers become more accustomed to Route 315 serving Carlsbad and with the service available from the start of MiraCosta s Page 44 of 46

95 upcoming school year (the change went into effect in October, two months after the college started). Route 353 saw a decrease in ridership from FY17 Quarter 3 to FY18 Quarter 3 of 217 weekday passengers, one daily Saturday passenger, and 24 daily Sunday passengers. This was expected to occur with the elimination of the route segment east of Escondido Transit Center (continued to be served by Routes 351, 352, 355, 357, and 388) and the frequency reduced from 30-minutes to 60-minutes. Route 388 average weekday ridership increased by 232 passengers per day from FY17 Quarter 3 to FY18 Quarter 3. Additional trips were added to compensate for the discontinuation of Route 389. In the last quarter of operation, Route 389 had 120 customers on average per weekday. The increase in ridership on Route 388 indicates that nearly all customers formerly traveling on Route 389 were able to complete their trip with Route 388. There was also an emphasis on connectivity with the SPRINTER at Escondido Transit Center leading to increased ridership. Saturday ridership saw a decline of 57 passengers per day, while Sunday increased by 39 passengers per day. Route 444 saw a slight increase of 6 customers per day from FY17 Quarter 3 and FY18 Quarter 3. It was extended to serve areas formerly served by Route 446. Ridership is expected to increase with improved on-time performance. The table below shows the routes with modifications and the ridership difference between FY17 Quarter 3 and FY18 Quarter 3 for weekday, Saturday, and Sunday. Modified Route Ridership Comparisons Route Average Weekday Ridership Average Saturday Ridership Average Sunday Ridership FY17 FY18 FY17 FY18 FY17 FY (101) 2,039 2,128 1,402 1,644 1,059 1, ,420 1, , / Page 45 of 46

96 APPENDIX D: COASTER & SPRINTER QUARTERLY PERFORMANCE COASTER and SPRINTER Quarterly Performance (FY18 Q3) Weekday Saturday Sunday COASTER SPRINTER COASTER SPRINTER COASTER SPRINTER Passengers per mile Passengers per hour Net cost per passenger $9.92 $7.66 $6.68 $12.17 $17.71 $14.53 Farebox recovery 25.8% 12.5% 34% 8.2% 16.3% 7% Page 46 of 46

97 CONDUCT PUBLIC HEARING AND ADOPT FY2019 OPERATING BUDGET AND FY2019-FY2023 CAPITAL IMPROVEMENT PROGRAM AND APPROVE FY2019-FY2028 SERVICE IMPLEMENTATION PLAN Agenda Item # 9 STAFF RECOMMENDATION: Time Sensitive: Consent: Staff recommends the North County Transit District Board of Directors: 1) Review the proposed FY2019 Operating Budget and FY Capital Improvement Program; and 2) Receive and consider public comment. Following receipt and consideration of public comment, staff further recommends the North County Transit District Board of Directors: 1) Close the Public Hearing on the proposed FY2019 Operating Budget and FY Capital Improvement Program; 2) Adopt the proposed FY2019 Operating Budget and FY Capital Improvement Program; 3) Approve the Proposed FY2019 Employee Classification and Compensation Schedule; 4) Approve the Proposed FY2019 Cost Recovery Schedule, 5) Approve the Proposed Disadvantaged Business Enterprise Goal; and 6) Approve the Proposed FY2019-FY2028 Service Implementation Plan. BACKGROUND INFORMATION: The North County Transit District (District) Board of Directors (Board) Policy No. 17 Budget Development (Board Policy No. 17) guides the development and implementation of the District annual operating budgets and capital improvement program. The Proposed FY2019 Operating Budget and FY Capital Improvement Program (FY2019 Proposed Budget) have been developed under Board Policy No. 17 guidelines, in compliance with all regulatory requirements, and represent a balanced budget in FY2019. At its April 19, 2018 meeting, the Board set a public hearing date for June 21, 2018 for consideration and adoption of the FY2019 Proposed Budget. At the May 3, 2018 Performance, Administration and Finance Committee meeting, staff provided a presentation of updated key revenue and expense assumptions for the FY2019 Proposed Budget. At the May 17, 2018 Regular Meeting of the Board, the Board received a presentation of the key revenue and expense assumptions for the FY2019 Proposed Budget, in advance of the release of the budget documents on June 6, On May 21, 2018, the Clerk of the Board published notice of the Public Hearing, including the date the documents would be made available for public review and comment. On June 6, 2018, NCTD posted the budget documents for public review and comment at the following locations: NCTD General Administrative Offices, 810 Mission Avenue, Oceanside, CA; Customer Service Offices at Oceanside, Escondido, and Vista Transit Centers, and on NCTD s website at: June 21, 2018 Board Meeting Staff Report No.: SR

98 To date, NCTD has received no public comment. Following are key details related to the FY2019 Proposed Budget: Operating Budget. The FY2019 Proposed Budget-Operating is balanced at $110,686,320, an approximate 4.9% increase of $5,178,770 from the Adopted FY2018 Operating budget of $105,507,550. Capital Budget. The FY2019 Proposed Budget-Capital Improvement Program is budgeted at $25,029,751, well in excess of the District s goal of $15 million capital improvement program per annum. Service Levels. In October 2017, NCTD implemented service changes to restructure BREEZE and FLEX service. BREEZE, COASTER, SPRINTER, and LIFT service levels are projected to remain flat against FY2018 Forecast service levels, while FLEX service is projected to increase 8.5% beyond the FY2018 Forecast due to the increased ridership on the new routes. Additional information on service levels is provided in the Proposed FY2019-FY2028 Service Implementation Plan. Ridership. The FY2019 Proposed Budget forecasts ridership at 10.7 million boardings, which is flat compared to the FY2018 Forecast. The forecast assumes no changes to ridership across all District modes, except FLEX, which is projected to have an 8.5% increase from FY2018 Forecast. Because overall FLEX ridership is low, 0.3% of total ridership, the increase does not substantially affect overall District ridership. Fare Policy. The FY2019 Proposed Budget includes current fare rates. The District has not raised fares since July 1, NCTD, San Diego Metropolitan Transit System (MTS) and SANDAG are working collaboratively on developing fare proposals that will support regional goals of increasing customer revenue and fare simplification. Passenger Revenues. As a share of overall revenues, passenger revenues are estimated to remain flat from the FY2018 Forecast, with projected revenue of $16.2 million. Non-Transportation and Auxiliary Revenues. Non-Transportation Revenues, which is comprised of property lease and permitting revenues, and Auxiliary Revenues, which is comprised of advertising, transit facility concession revenues and shared-use agreements, are expected to increase in FY2019, 2.42% and 1.54% respectively, from the FY2018 Forecast. Medi-Cal Transportation Revenue. Medi-Cal reimbursement revenues annually have been in excess of $1 million of eligible LIFT ADA paratransit trips. Assembly Bill No. 2394, amends the process for submitting and receiving reimbursement revenues effective July 1, Future reimbursements are to be submitted directly to eight (8) medical providers for transportation services provided. It is estimated that only 1% of current revenues will continue to be received from the Medi-Cal program, and other reimbursements would be made from the eight (8) medical providers. June 21, 2018 Board Meeting Staff Report No.: SR

99 Grant Revenues. The outlook for FY2019 operating grant revenues has not substantively changed since approved by the Transportation Committee of the SANDAG Board of Directors on February 16, Overall operating grant revenues have increased year-over-year. Salaries, Wages & Fringe Benefits. The FY2019 Budget assumes Full-Time Equivalents (FTEs) remain flat from the FY2018 Forecast, at FTEs. Salaries, wages and benefits remain relatively flat as well. Professional Services. The FY2019 Budget includes an increase this budget category. The increase is attributable to the reserve of local funds in order to streamline the micro-purchase procurement process, identification and utilization of on-call marketing services, expansion of the Bombardier facilities maintenance contract to include comprehensive facility maintenance services as well as the transfer of responsibilities from NCTD staff to Bombardier contracted personnel for the opening and closing of facilities, along with new contracts for consulting or provision of services to include, but not limited to, the procurement of a new contract to conduct in person assessments to establish eligibility for LIFT ADA Paratransit service along with travel training, procurement of consulting services to support business studies/assessments, and the issuance of a task order to conduct a vehicle maintenance audit related to BREEZE, LIFT, and FLEX services. Purchased Transportation. Purchased Transportation Services is the single most significant cost driver for the District s FY 2019 Operating Budget at $62.7 million (56.6% of the operating budget to support the combined BREEZE, LIFT, and FLEX contract with MV Transportation and the combined COASTER and SPRINTER contract with Bombardier). The MV Transportation and Bombardier contracts are capped at increases associated with the San Diego Area Consumer Price Index (CPI) not-to-exceed 3% on an annual contract year basis. The estimated increase for FY 19 is budgeted at 3% as the actual CPI will be just under 3%. Insurance. This expenditure category represents costs incurred to purchase various business, property and right-of-way insurances to mitigate risk beyond the District s $2 million self-insured coverage. Costs for these negotiated contracts are forecast to increase approximately 10-15% overall, a reflection of global and state catastrophic events that have affected the insurance markets. Safety and Security. In FY2018, the Security model for the District was updated with the addition of the Train Attendant position onboard SPRINTER, as well as Memorandums of Understanding with the Oceanside Police Department (OPD) and Escondido Police Department (EPD) for overtime coverage at Oceanside Transit Center (OTC) and Escondido Transit Center (ETC) respectfully. The current agreement with the San Diego Sheriff s Office remains in effect with 9 assigned staff (7 deputies, 1 sergeant and 1 administrative assistant), an increase of 2 deputies from the FY2017 staffing levels. The Transit Enforcement Division moved under the Safety Department to form the NCTD Safety and Security Division, and the Code Enforcement Officer positions were transitioned out of NCTD during the first 6 months of FY2018. For FY2019, $500,000 will be budgeted for OPD and EPD overtime coverage apiece, and 63.7% of the Division s total budget is dedicated to security operations by law enforcement. June 21, 2018 Board Meeting Staff Report No.: SR

100 Fuel. The cost of diesel and unleaded fuel for FY2019 is capped at $2.45 and $2.42 respectively under a fixed priced contract that was executed in February The FY2018 cost for diesel and unleaded fuel was $1.41 and $1.66 per gallon under a fixed-price contract that expired in January 31, NCTD still receives CNG fuel delivery thru a pipeline directly from SDG&E, however, the fuel is now billed thru the Carbon Credits provider. CNG is now priced on a spot price (either the monthly average daily price per Therm or the price per Therm on the first day of the month) that NCTD identifies at least 7 days prior to the start of the month, with a $.10 discount per 1 million British Thermal Units (BTUs) consumed. Contingency. This expenditure category was established to address unexpected expenditures that may occur during FY2019. Debt. The Debt Services Department was created to separately account for debtrelated expenditures. The primary source of debt for NCTD is related to the construction of the SPRINTER. This debt is expected to be retired by Onetime funding is included to support retaining a consultant to support debt financing to support NCTD s capital needs. Staff recommends the North County Transit District Board of Directors: 1) Review the proposed FY2019 Operating Budget and FY Capital Improvement Program; and 2) Receive and consider public comment. Following receipt and consideration of public comment, staff further recommends the North County Transit District Board of Directors: 1) Close the Public Hearing on the proposed FY2019 Operating Budget and FY Capital Improvement Program; 2) Adopt the proposed FY2019 Operating Budget and FY Capital Improvement Program; 3) Approve the Proposed FY2019 Employee Classification and Compensation Schedule; 4) Approve the Proposed FY2019 Cost Recovery Schedule, 5) Approve the Proposed Disadvantaged Business Enterprise Goal; and 6) Approve the Proposed FY2019-FY2028 Service Implementation Plan. ATTACHMENT: Documents in support of the staff recommendation are available at the following web link: Proposed FY2019 Operating Budget and FY Capital Improvement Program Proposed FY2019 Employee Classification and Compensation Schedule Proposed FY2019 Cost Recovery Schedule Proposed FY2019 Disadvantaged Business Enterprise Goal Proposed FY2019-FY2028 Service Implementation Plan GOAL/STRATEGIC DIRECTION: Legal, Regulatory, and Policy Compliance Accountability and Performance Management June 21, 2018 Board Meeting Staff Report No.: SR

101 FISCAL IMPACT: The fiscal impact of adopting the Proposed FY2019 Operating Budget is the acceptance and allocation of revenues in the amount of $110,686,320 and the authorization of $110,686,320 in expenditures. The fiscal impact of adopting the FY2019 Proposed Budget-Capital Improvement Program is the acceptance and allocation of $25,029,751 in revenues, and the authorization of $25,029,751 in expenditures. COMMITTEE REVIEW: Date: Performance, Administration, and Finance May 3, 2018 STAFF CONTACT: Eun Park-Lynch, Interim Chief Financial Officer Phone: June 21, 2018 Board Meeting Staff Report No.: SR

102 Agenda Item # 10 AUTHORIZE THE EXECUTIVE DIRECTOR TO EXECUTE AGREEMENT NO FOR THE PURCHASE OF CHARGER LOCOMOTIVES PURSUANT TO MULTI-STATE LOCOMOTIVE MASTER AGREEMENT NO DPIT FROM SIEMENS MOBILITY, INC. AND TAKE OTHER ACTIONS NECESSARY TO ADVANCE THE PROCUREMENT STAFF RECOMMENDATION: Time Sensitive: Consent: Staff recommends that the Board of Directors authorize the following actions for the successful advancement of the purchase of Charger Locomotives from Siemens Mobility, Inc. (Siemens): 1) Authorize the Executive Director to execute Ordering Agreement No to the Multi-State Locomotive Master Agreement No DPIT (Attachment 10B) to Siemens to purchase five (5) locomotives in the amount of $37,138,897. The Ordering Agreement provides that NCTD can purchase up to four (4) additional locomotives over the term of the agreement. If staff determines it is in NCTD s best interest to exercise an option, it will return to the Board for authorization; 2) Establish a contingency for this project and authorize the Executive Director to execute change orders in an amount not-to-exceed $1.5 million; 3) Authorize the Executive Director to pursue a financing agreement with the San Diego Association of Governments (SANDAG), Caltrans, and financial institutions to mitigate against risks of delays or loss of committed funding with final approval to execute an agreement subject to the approval of the Board of Directors; 4) Adopt Resolution No authorizing the Executive Director to utilize up to $6 million of NCTD Board reserve funds to support the initial cash flow needs associated with this procurement that require a milestone payment of $ 7,427,779 by July 6, 2018 with a full reimbursement to the reserve account by January 1, 2019; 5) Authorize the Executive Director to negotiate and finalize a sole source spare parts agreement with Siemens for the purchase of spare parts in an amount not-to-exceed $11 million, with authority to exercise the option to immediately order 1 spare truck upon execution of the agreement in the amount of $860,000; and 6) Authorize the Executive Director to award Task Order Agreement No. 02 to STV, Inc. under Agreement No to provide oversight support for the construction and acceptance of locomotives in an amount not-toexceed $841, June 21, 2018 Board Meeting Staff Report No.: SR

103 BACKGROUND INFORMATION: The North County Transit District (NCTD) currently operates a fleet of seven (7) locomotives on the San Diego Subdivision to support COASTER operations. The fleet is composed of two (2) F-59 locomotives that were purchased as new by NCTD in 2001 and five (5) F-40 purchased as used locomotives that were originally built between by GM Electro-Motive Power Division. The F- 40 locomotives where refurbished by MK/MPI between 1988 through The minimum expected useful life of the locomotives as specified by the Federal Transit Administration is 25 years. The five (5) F-40 locomotives have reached the end of their useful life and staff has determined that that new locomotives are needed to support NCTD s goals of providing safe, reliable, and efficient services. Procurement Methodology To support the procurement of locomotives, NCTD considered issuing a request for proposals along with reviewing available opportunities to procure locomotives via a joint/multi-state procurement. NCTD staff identified and subsequently determined that the Illinois Department of Transportation (IDOT) and the California Department of Transportation (Caltrans) multi-state procurement for locomotives provided the most timely, and cost-effective approach to support the procurement of locomotives. NCTD s determination was based on the following. (1) The cost for developing specifications and administering a NCTD only procurement would be borne solely by NCTD. (2) A NCTD only procurement would likely result in higher costs due to the relatively small quantity of NCTD s locomotive order compared with the large number of orders and options associated with the multi-state agreement. (3) The multi-state contract award to Siemens and subsequent purchase by California rail agencies will result in reduced costs associated with vehicle acceptance and qualification for operations. (4) The procurement of locomotives via the multi-state agreement significantly enhances the likelihood that replacement parts and equipment will be available for the full expected life of the new vehicles. Background Information Regarding the Multi-State Locomotive Procurement On August 8, 2013, IDOT and Caltrans issued Request for Proposal No DPIT for a Multi-State Locomotive Procurement to provide Passenger Rail Investment and Improvement Act (PRIIA) Specification No (Rev. A) compliant high-performance locomotives to be placed into passenger service in the Midwest States of Illinois, Michigan, Missouri and Iowa, and the States of California and Washington. The evaluation committee evaluated and scored three final offers received by EMD, Siemens, and MotivePower on November 27, The evaluation committee determined that Siemens proposal for Charger locomotives was the best overall value and best met the specifications and requirements of RFP No DPIT. To that end, IDOT, in consultation with Caltrans, awarded to Siemens Industry Inc. and developed the master agreement whereby locomotives for Illinois, California, and Washington (collectively the Joint Purchasing Entities (JPEs) for the base order) were procured using Ordering Agreements under the Master Agreement. The Master Agreement commenced on March 12, 2014 with a seven (7) year base and an option to extend for no more than three additional years. June 21, 2018 Board Meeting Staff Report No.: SR

104 The IDOT/Caltrans RFP and resulting agreement are Buy America Compliant but do not meet all the FTA requirements for standard piggybacking. As a result, FTA would only permit NCTD to utilize the master agreement if it were adopted by Caltrans as a State Schedule or if NCTD were a JPE to the Master Agreement and all FTA requirements not included in the original RFP be incorporated into the ordering agreement. Staff explored these purchasing methods with Caltrans and the FTA and determined the best approach would be for NCTD to become an authorized JPE. As a result, on November 17, 2017, the Illinois Department of Transportation authorized NCTD as a JPE per Section 6 of the Master Agreement thereby authorizing NCTD full authority to purchase off the Master Agreement as an authorized party to the joint procurement. The cost/price analysis required for each procurement action varies by the complexity of the procurement. In order to make a fair and reasonable determination, staff first reviewed the methodology that the IDOT/Caltrans cost proposals were evaluated against. It was determined that IDOT/Caltrans determined price points using the same formula that NCTD uses. = ( ) Price scores were awarded by the Multi-State procurement based on the Base Contract, Option Contract, and Life Cycle Cost with Siemens scoring the highest in all categories as follows. Offeror Electro-Motive Diesel (EMD) Responsiveness Score Price Score Total Score Siemens MotivePower Based on the Total Scores shown above, the Multi-State Evaluation Committee concluded its review on December 18, 2013 with a recommendation to award the contract to Siemens Industry, Inc. On February 3, 2014, EMD filed a protest letter alleging that Siemens lacked contractor responsibility. In accordance with IDOT protest procedures, a protest was required to be filed within 7 calendar days after the protester knows or should have known of the facts giving rise to the protest. Protests filed after the 7-calendar day period will not be considered. The Notice of Intent to Award (NOIA) was posted on December 18, Timely protests should have been submitted by December 25, 2013, seven days after the NOIA was posted. EMD did not submit its protest until February 3, As a result, IDOT denied the protest because 1) it did not allege a valid ground for protest; 2) it was not filed in a timely manner; and 3) it did not conclusively demonstrate by the preponderance of relevant information submitted that fraud, corruption or illegal acts have occurred that undermine the integrity of the procurement process. June 21, 2018 Board Meeting Staff Report No.: SR

105 Additionally, following NCTD s public notification that it intended to request Board authority to award a contract to Siemens Industry, Inc. for Charger locomotives, NCTD received a letter from another proposer to the original RFP, MotivePower, on February 20, 2018, questioning whether NCTD is obligated to conduct a public procurement and whether the proposed award to Siemens under Master Agreement No DPIT was an impermissible piggyback under FTA s procurement guidelines. NCTD responded that MotivePower s understanding that a public procurement requirement is necessary is correct and was fully satisfied by the public and competitive IDOT Request for Proposal 14-1-DPIT. Additionally, NCTD advised that it will not be utilizing FTA funds for this procurement and as a formally authorized and recognized JPE, NCTD has been granted authorization to place orders under the Master Agreement via an Ordering Agreement. An Ordering Agreement is the ordering vehicle of the Master Agreement and is not considered an assignment of options, tag-on, or piggyback and, therefore, is not subject to further protest. About the Siemens Charger Locomotive The Siemens Charger locomotive is a diesel-electric passenger locomotive designed and manufactured by Siemens Mobility, Inc. for the North American market. The Charger has been purchased and is operational in several states, including California, Illinois, Maryland, Pennsylvania, Oregon, and Washington. The Siemens Chargers are among the nation s cleanest passenger locomotives and are the first high-speed passenger locomotive to receive Tier 4 emissions certification from the US Environmental Protection Agency (EPA). With the environmentally-friendly Cummins-built diesel engine, the locomotives reduce emissions by nearly 90% compared to the Tier 0 F-40 locomotives currently being used by NCTD. The Charger offers a 4,000 Horse Power Cummins Diesel engine that has a top speed of 125 mph and provides an innovative design that allows for comfort and efficiency with state of the art hardware. All Charger systems meet or exceed regulatory requirements and the locomotive is Buy America compliant. Assuming the Board authorizes this procurement action, NCTD anticipates delivery of the first vehicle by March 2021 and the fifth vehicle by May The procurement of the Charger locomotive will allow NCTD to increase service by adding 6 additional daily weekday trips and 3 additional trips per day for weekend service. Locomotive Procurement Cost Analysis NCTD staff conducted significant market research and analysis of other locomotive procurements under the Master Agreement and other similar procurements in development of its independent cost estimate and to establish the determination that the price offer by Siemens remains fair and reasonable. Market research conducted separately by NCTD and a consultant retained by NCTD, STV, Inc. provided the following information related to locomotive procurements to support the determination that Siemen s cost per locomotive of $7,123,002 remains fair and reasonable. NCTD Analysis In 2012, Southern California Regional Rail Authority (Metrolink) entered into an agreement with EMD to purchase up to 20 Tier 4 locomotives in an amount notto-exceed $129,400,000 plus a contingency of $8,000,000. In 2012, Metrolink acquired all 20 locomotives at the agreed unit price of $6,295,000 per locomotive. In 2015, Metrolink exercised an option to purchase an additional 9 EMD F125 June 21, 2018 Board Meeting Staff Report No.: SR

106 Tier 4 locomotives. EMD escalated the unit cost from the original procurement of $6,295,000 to $6,450,000. It was noted in the Metrolink staff report that EMD was the highest ranked proposer but did not offer the lowest price. Applying an inflation calculator to the 2015 Metrolink price, the EMD locomotives would be expected to cost approximately $6,948,485 today per locomotive. STV Analysis NCTD awarded a task order agreement to STV that required a cost analysis be performed comparing Charger Locomotive and EMD Locomotive pricing to highlight the costs of both locomotives and compare the overall value of the Charger to the EMD. Following the completion of the analysis, STV determined that the pricing proposed by Siemens for the Charger locomotives is fair and reasonable. NCTD and Siemens Negotiations and Final Agreement Following extensive negotiations related to the terms and conditions of the agreement and the cost proposal including payment milestones provided by Siemens, NCTD was provided a best and final offer from Siemens for the purchase of five (5) locomotives as part of the initial purchase and will have the option to purchase up to four (4) additional locomotives upon the terms outlined in the Ordering Agreement (see Attachment 10C for Pricing Overview/Option Pricing Schedule). Should NCTD determine that the acquisition of the additional locomotives is in the best interest of the District, staff will return to the Board for approval to exercise the options and for the associated funding. The agreement with Siemens includes warranty and specialty tools and PTC equipment installations on each locomotive. Additionally, the agreement requires Siemens to ensure that parts are available for the expected useful life of the vehicle. Ordering Agreement and Plan of Finance Siemens has provided NCTD a production schedule that spans over 24 months with the last delivery for the base order anticipated by May Ordering Agreement No (Attachment 10B) between NCTD and Siemens, provides detailed information related to the terms, conditions, schedule, and cost elements for NCTD s locomotive procurement. A key item of discussion was the finalized milestone payment schedule which requires NCTD to make an initial payment of $7,427,779 by July 6, 2018, which represents 20% of the total cost of $37,138,897 for the agreement for 5 locomotives. (see Attachment 10D Milestone Payment Schedule). NCTD staff is proposing to use up to $6 million of the Board s $15 million contingency to meet this initial payment requirement. NCTD anticipates that all funds expected from the local and state sources to support this payment will be available by not later than January 1, 2019 to support repayment of reserve funds. The next milestone payment will not be due until July 1, 2020 which will allow NCTD to develop and execute agreements to include debt financing to mitigate against risks of delays or loss of committed funding as necessary. The remaining payments representing the remaining 80% of the total cost in the amount of $29,711,119 are scheduled to be paid over a period of an approximately 10-month period. June 21, 2018 Board Meeting Staff Report No.: SR

107 Staff has developed a detailed Plan of Finance (Attachment 10E) to support the funding and mitigation of risk for this procurement. The Siemens agreement for the purchase of locomotives will utilize state and local fund only while the purchase of spare parts will be federally compliant for procurement purposes. NCTD has established a contingency of $1.5 million to support required change orders associated with this procurement. Spare Parts Agreement NCTD contemplates the need for additional spare parts to support this procurement and to ensure continued operations in the event of a component failure. To that end, NCTD is negotiating a separate companion spare parts procurement that provides for the purchase of necessary spare parts that are proprietary to Siemens. To that end, staff seeks authority to execute a spare parts agreement with Siemens that will allow the immediate purchase of 1 spare truck in the amount of $860,000 and will allow NCTD to exercise options for the purchase of other spare parts at negotiated pricing in a total amount not-toexceed $11 million over a negotiated term. Staff will return to the Board if it determines that the exercise of any option is in the best interest of the District and the option exceeds the authority delegated to the Executive Director by the Board under Board Policy No. 19. Consultant Support for Planning and Evaluation through Procurement To support this complex procurement activity and to ensure timely delivery of NCTD s locomotives, NCTD needs the skill and expertise of a consultant. On September 21, 2017, the Board of Directors authorized an agreement with STV, Inc., to provide as-needed specialized consulting services to support planning, evaluation, and procurement of commuter locomotives and cars, commuter rail diesel multiple units, and zero emission bus technologies. The proposed task order will support inspection of the locomotives during construction and final acceptance for operations. NCTD now seeks the Board s authority to execute Task Order Agreement (TOA) No. 02 to Agreement No , for a not-to-exceed amount of $841,114. The best and final hourly rates established in the base contract were analyzed and compared to three other offers within the competitive range and determined to be fair and reasonable through competition. Using the base hourly rates, staff negotiated the level of effort and scope of TOA No. 02 and determined that it was fair and reasonable as the final amount is 28% less than the Independent Cost Estimate. Based on the foregoing, it is staff s recommendation that the Board: 1) Authorize the Executive Director to execute Ordering Agreement No to the Multi-State Locomotive Master Agreement No DPIT to Siemens to purchase five (5) locomotives in the amount of $37,138,897. The Ordering Agreement provides that NCTD can purchase up to four (4) additional locomotives over the term of the agreement. If staff determines it is in NCTD s best interest to exercise an option, it will return to the Board for authorization; 2) Establish a contingency for this project and authorize the Executive Director to execute change orders in an amount not-to-exceed $1.5 million; June 21, 2018 Board Meeting Staff Report No.: SR

108 3) Authorize the Executive Director to pursue a financing agreement with the San Diego Association of Governments (SANDAG), Caltrans, and financial institutions to mitigate against risks of delays or loss of committed funding with final approval to execute an agreement subject to the approval of the Board of Directors; 4) Adopt Resolution No authorizing the Executive Director to utilize up to $6 million of NCTD Board reserve funds to support the initial cash flow needs associated with this procurement that require a milestone payment of $ 7,427,779 by July 6, 2018 with a full reimbursement to the reserve account by January 1, 2019; 5) Authorize the Executive Director to negotiate and finalize a sole source spare parts agreement with Siemens for the purchase of spare parts in an amount not-to-exceed $11 million, with authority to exercise the option to immediately order 1 spare truck upon execution of the agreement in the amount of $860,000; and 6) Authorize the Executive Director to award Task Order Agreement No. 02 to STV, Inc. under Agreement No to provide oversight support for the construction and acceptance of locomotives in an amount not-toexceed $841,114. ATTACHMENT: 10A Draft Resolution No B Draft Ordering Agreement No (without attachments) 10C Pricing Overview/Options Pricing Schedule 10D Milestone Payment Schedule 10E Plan of Finance for Locomotives GOAL/STRATEGIC DIRECTION: FISCAL IMPACT: Enhance Customer Service, Improve Service Quality, and Increase Ridership Asset Management and State of Good Repair 1. The fiscal impact of the execution of Ordering Agreement No to the Multi-State Locomotive Master Agreement No DPIT to Siemens to purchase five (5) locomotives is $37,138,897. The scope of work is funded with State of Good Repair, State Transit Assistance and State Rail Assistance funds made available through Senate Bill 1, and Carl Moyer funds made available through a grant with the Air Pollution Control District in project account , which has $1,728,781 available for this scope of work. NCTD has programmed $7,427,779 of funding made available under Senate Bill 1 in FY 2018 for the initial payment, but to date has only received payments of $1,808,781, of which $1,728,781 is available for this scope of work. Accordingly, the initial payment of $7,427,779 will be funded with a combination of $1,728,781 in project account and $5,698,998 in Board reserve funds. If the Board of Directors approves this contract action, the balance available for this scope of work in project account will be reduced to $0. NCTD will program and make available future fiscal year funds through the annual Capital Improvement Program. 2. There is no fiscal impact to establish a contingency for the project; the contingency will be funded with State of Good Repair, State Transit Assistance and/or State Rail Assistance funds made available through Senate Bill 1. Funding for future fiscal years will be programmed and made available through the annual Capital Improvement Program. June 21, 2018 Board Meeting Staff Report No.: SR

109 3. There is no fiscal impact to authorize the Executive Director to pursue a financing agreement with the San Diego Association of Governments (SANDAG), Caltrans, and financial institutions. 4. The fiscal impact of adopting Resolution No authorizing the Executive Director to utilize up to $6 million of NCTD Board reserve funds to support the initial cash flow needs is a decrease in the Board reserve fund by up to $6 million on July 6, Funding provided under FY 2018 allocations of State Rail Assistance and State Transit Assistance under Senate Bill 1 will be used to pay back the Board reserve fund by January 1, The fiscal impact of authorizing the Executive Director to negotiate a spare parts agreement with Siemens is $860,000, which is funded with Federal Transit Administration (FTA) and local Transportation Development Act (TDA) monies in account If the contract action is approved, the balance available for this scope of work in account will be reduced to $0. Funding for additional spare parts purchases in future years will be programmed and made available through the annual Capital Improvement Program. 6. The fiscal impact of authorizing the Executive Director to award Task Order Agreement No. 02 to STV to provide oversight support for the construction and acceptance of locomotives is $841, The project is funded from Federal Transportation Administration (FTA) and local Transportation Development Act (TDA) monies in project account , which has $841, available for this scope of work. If the Board approves this action, the balance of this account will be reduced to $0. COMMITTEE REVIEW: STAFF CONTACT: None Don Filippi, Chief Operations Officer Rail dfilippi@nctd.org Phone: June 21, 2018 Board Meeting Staff Report No.: SR

110 ATTACHMENT 10A RESOLUTION NO RESOLUTION OF THE NORTH COUNTY TRANSIT DISTRICT BOARD OF DIRECTORS AUTHORIZING THE USE OF BOARD RESERVE FUNDS FOR THE PURCHASE OF CHARGER LOCOMOTIVES WHEREAS, the North County Transit District Board of Directors (Board) has adopted Board Policy No. 10 Reserve Funds (Board Policy No. 10) to establish guidelines for reserve funds at the North County Transit District (District), including the target balance, applicable funding sources, anticipated uses, and approvals for the use of reserve funds; and WHEREAS, Board Policy No. 10 establishes a Board Reserve Fund to adequately provide for unforeseen or special events; and WHEREAS, per Section 1 of Board Policy No. 10, the Board Reserve Fund shall be available only as directed by the District Board; and WHEREAS, per Section 1(b) of Board Policy No. 10, the Board Reserve Fund is intended to be used for one-time non-recurring purposes, and authorizes the use of the Board Reserve where there are opportunities to advance urgent, high-priority needs; and WHEREAS, per Section 1(c) of Board Policy No. 10, requires that the Board adopt a Resolution to utilize the Board Reserve Fund as set forth in Board Policy No. 10, that describes the need for use of the Board Reserve Fund and the uses for which the Board Reserve Fund will be expended; and WHEREAS, NCTD currently operates five (5) F-40 locomotives that have reached the end of their useful life; and WHEREAS, staff have determined that new locomotives are needed to support NCTD s goals of providing safe, reliable, and efficient services; and WHEREAS, staff determined that the Illinois Department of Transportation (IDOT) and the California Department of Transportation (Caltrans) multi-state procurement for Siemens Charger locomotives provides the most timely and cost-effective approach to support the replacement of locomotives; and WHEREAS, following extensive negotiations related to the terms and conditions of the agreement and the cost proposal, Siemens provided NCTD a production schedule spanning over 24 months with a milestone payment schedule that requires NCTD to make an initial payment of $7,427,779 on July 6, 2018; and

111 WHEREAS, NCTD has programmed $7,427,779 of funding made available under Senate Bill 1 in FY 2018 for the initial payment, but to date has only received payments of $1,808,781, of which $1,728,781 is presently available for this scope of work; and WHEREAS, there remains $5,698,998 to complete the funding required to make the initial payment; and NOW, THEREFORE, BE IT RESOLVED that the North County Transit District Board of Directors hereby authorizes the use of the Board Reserve Fund in an amount not-toexceed $6,000,000 to support the cash flow needs for the initial milestone payment in accordance with Board Policy No. 10; and BE IT FURTHER RESOLVED that insofar as the provisions of any Ordinance, Resolution, document or previous action of the Board and/or the Executive Director, prior to the date of this Resolution, are inconsistent with the provisions of this Resolution or any policy adopted by this Resolution, this Resolution and the Board Policies adopted herein shall control. PASSED, APPROVED AND ADOPTED at the regular meeting of the Board of Directors of the North County Transit District this 21st day of June, CERTIFICATION BOARD CHAIR North County Transit District I, Anthony Flores, duly appointed and qualified, Clerk of the Board of the North County Transit District, do hereby certify that the above is a true and correct copy of a resolution passed and approved by the Board of Directors of the North County Transit District adopted at a legally convened meeting of the Board of Directors of the North County Transit District held on the 21st day of June, CLERK OF THE BOARD North County Transit District Page 2 of 2

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