SANTA CLARA VALLEY TRANSPORTATION AUTHORITY (V T A) ADOPTED BUDGET FISCAL YEAR, JULY 1, 2001 through JUNE 30, 2002 2001

Board of Directors: Manuel Valerio, Chairperson of V T A Board of Directors, and Council Member of t he City of Sunnyvale Ron Gonzales, Vice-Chairperson of V T A Board of Directors, and Mayor of the Cit y of San Jose Blanca Alvarado, Supervisor on the Santa Clara County Board of Supervisors Cindy Chavez, Council Member of the City of San Jose David Cortese, Council Member of the City of San Jose Pat Dando, Council Member of the City of San Jose Don Gage, Supervisor on the Santa Clara County Board of Supervisors Dennis Kennedy, Mayor of the City of Morgan Hill Jane P. Kennedy, Council Member of the City of Campbell Sally Lieber, Vice-Mayor of the City of Mountain View Judy Nadler, Mayor of the City of Santa Clara Forrest Williams, Council Member of the City of San Jose Board Member Alternates: Randy Attaway, Vice-Mayor of the Town of Los Gatos Sandra Eakins, Mayor of the City of Palo Alto Pete McHugh, Supervisor on the Santa Clara County Board of Supervisors Thomas Springer, Mayor of the City of Gilroy Ken Yeager, Council Member of the City of San Jose Ex-Officio: James Beall, Jr., Chairperson of the Metropolitan Transportation Commission (M T C) John McLemore, M T C Representative, and Vice Mayor of the City of Santa Clara A description of V T A's Administration Organizational follows: Peter M. Cipolla, General Manager Suzanne Gifford, General Counsel Sandra Weymouth, Board Secretary Scott Buhrer, Chief Financial Officer Division Directors: Jack Collins, Rail Design and Construction Michael P. Evanhoe, Congestion Management and Highway Programs Kaye L. Evleth, Human Resources Frank Martin, Operations Jim E. Pierson, Planning and Development Anne-Catherine Vinickas, Marketing and Customer Service Budget Department: Victor Chan Christine Huynh Pauline Man Jim McCutchen Linda Schwartz TABLE OF CONTENTS General Manager's Budget Message Introduction: Budget Resolution

Executive Summary Vision, Mission, and Strategic Plan Current Operations Operating Budget: Operating Budget Budget Policies, Practices, and Methodologies Major Budget Assumptions and Explanations Division Budgets: Fiscal Year 2000-2001 Accomplishments and Fiscal Year 2001/2002 Goals Office of the General Manager Office of the General Counsel Operations - Administration Operations - Transportation Operations - Maintenance Fiscal Resources Human Resources Planning and Development Rail Design and Construction Marketing and Customer Services Other Congestion Management and Highway Programs Capital Budget: Introduction Capital Budget Schedule Major Transit Capital Programs 1996 Measure B Transportation Improvement Program Appendices: A Employee Positions by Division and Pay Ranges B Budgeted Positions by Division and Classification C Population Data for Santa Clara County by City D Fiscal Year 2001/2002 ATU Pension Fund Expenditure Plan E List of New and Augmented Capital Projects F Additional Information on Non-Revenue Vehicle Purchase G Fee Schedule Glossary GENERAL MANAGER'S BUDGET MESSAGE: Authoring this budget message calls to mind the many changes and challenges the Santa Clara Valley Transportation Authority has tackled during the preceding fis cal year. Extend the reflection over the past six years and it's apparent that V T A's challenges and attendant responsibilities have increased in both number a nd scope with each year. Together, - the Board of Directors, customers, staff a nd the general public - we have forged some unprecedented progress. The positiv e results, however, are tempered by the reality that some solutions are still to be completed and that external factors require our constant flexibility and str ategic action. Ridership, public confidence in our transportation vision, and project delivery reached new heights this past fiscal year. Conversely, our service reliability dipped lower than ever before; some basic business practices continue to hold us back; and external economic conditions, including energy costs, demand vigilanc e.

Of course, maintaining and improving both the quantity and quality of transit se rvices is our foremost concern. Ridership records have been consistently eclips ed. Total ridership increased 7 point 3 percent in the first six months of Fisca l Year 2000/2001. Such ridership growth despite our service reliability issues caused by an unprecedented labor shortage is remarkable and heartening. The ser vice reliability decline was so severe we had no option but to delay our schedul ed service expansion. We responded by reinventing our recruitment methods, incl uding two successful job fairs, and by initiating compensation realignments to b e more competitive with prevalent market rates. We renegotiated our labor agreem ent with the Amalgamated Transit Union to enhance our ability to retain and attr act qualified operators and mechanics. These actions have shown promising resul ts and we believe will serve well in addressing our labor shortages. We remain determined to return to our service expansion mode as soon as possible. This bu dget calls for the resumption of service expansion in Fiscal Year 2001/2002, add ing 50,000 service hours and over 600,000 service miles. The passage of Measure A this past November by over 70 percent of the electorate is a resounding affirmation of V T A's transportation vision. We recognize tha t this unprecedented confidence comes with a weighty responsibility: to honor su ch trust through successfully implementing the Valley Transportation Plan 2020 ( V T P 2020), the blueprint for investment in a balanced transportation infrastru cture for Santa Clara Valley. This budget reflects our initial steps to accompl ish V T P 2020, including the 2000 Measure A and 1996 Measure B programs. We are gearing up organization wide to ensure quality project deliveries as soon as fe asible. While the scope and magnitude of 2000 Measure A will provide a central focus for V T A's efforts for decades to come, this budget also incorporates our current efforts directed at delivering the 1996 Measure B Transportation Improvement Pro gram. Before the current fiscal year is over, we will have started construction on the Highway 17 and I 880 projects as well as the Vasona Light Rail Line, and , opened service on the initial segment of the Tasman East Light Rail Line, from Baypointe Transfer Station to the new I 880/Milpitas station. Tasman East to I 880 marks the delivery of the first transit project funded by the 1996 Measure B Transportation Improvement Program, on schedule and under budget. External influences continue to need our attention. The explosive growth of the economy appears to have finally stalled, and expenses related to energy resource s can be expected to rise. Prudent fiscal responses are imperative. In Fiscal Y ear 2001/2002, we anticipate a decrease in our major operating revenue - the per manent half-cent sales tax approved by voters in 1976. Revenues to complete the 1996 Measure B projects must also be watched carefully. The challenges may seem daunting, but the opportunities are once in a lifetime. We will continue to work in earnest with our many partners, both current and fu ture ones, to develop an effective regional transportation network that supports economic vitality and quality of life. We will continue to make major investm ents in our greatest asset, our employees, through recruitment, training and dev elopment programs. We will continue outreach to our diverse communities. And, we will continue to seek the resources essential to fulfilling our vision "...to provide a transportation system that allows anyone to go anywhere in the region easily and efficiently." Signed by Peter M. Cipolla, General Manager August 17, 2001 Resolution No. 01.06.38 RESOLUTION OF THE BOARD OF DIRECTORS OF THE SANTA CLARA VALLEY TRANSPORTATION AU THORITY (V T A) ADOPTING THE ANNUAL BUDGET OF V T A FOR FISCAL YEAR 2001/2002

WHEREAS, on or before April 5, 2001, the General Manager presented the Santa Cla ra Valley Transportation Authority Fiscal Year 2001-2002 Recommended Budget to t he Board of Directors and mailed a copy to each City Manager and Mayor in the Co unty of Santa Clara and to the County Executive; and WHEREAS, additional copies of the Recommended Budget were distributed to V T A's Advisory Committee membership, libraries in Santa Clara County, Santa Clara Cou nty's state and federal legislative delegation, senior and disabled groups, prof essional community organizations, and the media, and were available for perusal at V T A's Downtown Customer Service Center, as well as libraries and city halls throughout the County; and WHEREAS, the Recommended Budget includes all administrative, operational and cap ital expenses for the Congestion Management Program together with the apportionm ent of Congestion Management Program expenses by levy against each Member Agency to the extent necessary to fund the Congestion Management Program; and WHEREAS, the Recommended Budget was reviewed by the Administration and Finance C ommittee on April 20, 2001, and May 18, 2001, and on May 3, 2001, by the Board o f Directors at a public meeting; and WHEREAS, a list of employee position classifications and pay ranges is included in the recommended budget as Appendix A, and the amount of funds budgeted for wa ges, salaries and benefits for Fiscal Year 2001/2002 is based upon V T A's posit ion classification and pay plan and is set forth in the Statement of Revenues an d Expenses in the Recommended Budget; and WHEREAS, the Board of Directors desires to adopt an annual budget for the Fiscal Year 2001/2002; NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Santa Clara Vall ey Transportation Authority that the attached recommended budget for the Santa C lara Valley Transportation Authority (marked "Exhibit A" and incorporated herein as though set forth at length), as revised as shown on Exhibit B, is hereby ado pted as V T A's budget for the Fiscal Year 2001/2002. BE IT FURTHER RESOLVED that, effective July 1, 2001, positions may be authorized and filled, as required, by the General Manager and General Counsel, as appropr iate, provided that total V T A-wide budgeted wages, salaries and benefits accou nt is not exceeded. BE IT FURTHER RESOLVED, that, as necessary for efficient administration, positio n classifications may be added, modified, or deleted and salary ranges adjusted with the approval of the General Manager or General Counsel, as appropriate, pro vided that the changes are in accordance with applicable V T A personnel policie s and procedures and are consistent with pay practices in the transportation ind ustry. Such changes shall include pay and classification adjustments arising fr om agreements between V T A and its recognized labor organizations. BE IT FURTHER RESOLVED, that operating appropriations for major professional ser vices for one time non-recurring programs or projects, which are not expended du ring the fiscal year, shall carryover to the successive fiscal years until the p rograms or projects are completed or terminated. Other operating appropriations shall lapse at year-end. BE IT FURTHER RESOLVED, that capital appropriations, which are not expended duri ng the fiscal year, shall carry over to successive fiscal years until the projec ts are completed or otherwise terminated.

BE IT FURTHER RESOLVED, that the budget shall consist of three Funds, the Transi t Enterprise Fund, the Congestion Management Program Fund, and the 1996 Measure B Transportation Improvement Program Fund. The General Manager may reallocate a ppropriations between budget units and cost groups within each Fund up to the li mits of each Fund's annual appropriation. Any net increase in authorized approp riations to any Fund (including an allocation from reserves) shall require an af firmative vote of at least eight Directors. BE IT FURTHER RESOLVED, that the Recommended Assessments of member agencies for the Congestion Management Program are hereby approved. PASSED AND ADOPTED by the Santa Clara Valley Transportation Authority Board of D irectors on June 7, 2001, by the following vote: AYES: Chavez, Cortese, Dando, Eakins, Gage, Gonzales, D. Kennedy, J.P. Kennedy, Lieber, McHugh, Williams, Valerio NOES: None ABSENT: None Signed by MANUEL VALERIO, Chairperson of Board of Directors ATTEST and signed BY SANDRA WEYMOUTH, Secretary of Board of Directors APPROVED AS TO FORM and signed BY SUZANNE GIFFORD, General Counsel SANTA CLARA VALLEY TRANSPORTATION AUTHORITY FISCAL YEAR 2001/2002 BUDGET EXECUTI VE SUMMARY: Ridership in thousands: Bus: Fiscal Year 1999/2000 Actual 47,008; Fiscal Year 2000/2001 Adopted Budget 4 9,500; Fiscal Year 2000/2001 Revised Budget 47,800; Fiscal Year 2001/2002 Budget 48,800; Percent of change from Fiscal Year 2001 Revised is 2 point 1 percent. Light Rail: Fiscal Year 1999/2000 Actual 7,914; Fiscal Year 2000/2001 Adopted Bu dget 8,500; Fiscal Year 2000/2001 Revised Budget 9,200; Fiscal Year 2001/2002 Bu dget 10,000; Percent of change from Fiscal Year 2001 Revised is 8 point 7 percen t. Total Ridership: Fiscal Year 1999/2000 Actual 54,922; Fiscal Year 2000/2001 Adop ted Budget 58,000; Fiscal Year 2000/2001 Revised Budget 57,000; Fiscal Year 2001 /2002 Budget 58,800; Percent of change from Fiscal Year 2001 Revised is 3 point 2 percent. Service Miles in thousands: Bus: Fiscal Year 1999/2000 Actual 22,924; Fiscal Year 2000/2001 Adopted Budget 2 3,596; Fiscal Year 2000/2001 Revised Budget 22,944; Fiscal Year 2001/2002 Budget 23,479; Percent of change from Fiscal Year 2001 Revised is 2 point 3 percent. Light Rail: Fiscal Year 1999/2000 Actual 1,651; Fiscal Year 2000/2001 Adopted Bu dget 2007; Fiscal Year 2000/2001 Revised Budget 2,007; Fiscal Year 2001/2002 Bud get 2,088; Percent of change from Fiscal Year 2001 Revised is 4 point 0 percent. Total Service Miles: Fiscal Year 1999/2000 Actual 24,575; Fiscal Year 2000/2001 Adopted Budget 25,603; Fiscal Year 2000/2001 Revised Budget 24,951; Fiscal Year 2001/2002 Budget 25,567; Percent of change from Fiscal Year 2001 Revised is 2 po int 5 percent. Positions full time and part time in whole number: Fiscal Year 1999/2000 Actual 2,463; Fiscal Year 2000/2001 Adopted Budget 2,757; Fiscal Year 2000/2001 Revised

Budget 2,790; Fiscal Year 2001/2002 Budget 2,863; Percent of change from Fiscal Year 2001 Revised is 2 point 6 percent. Revenues in thousand dollars: Total Revenues: Fiscal Year 1999/2000 Actual 301,876; Fiscal Year 2000/2001 Adop ted Budget 298,327; Fiscal Year 2000/2001 Revised Budget 316,814; Fiscal Year 20 01/2002 Budget 346,508; Percent of change from Fiscal Year 2001 Revised is 9 poi nt 4 percent. Major Revenue Components: Half Cent Sales Tax: Fiscal Year 1999/2000 Actual 166,764; Fiscal Year 2000/2001 Adopted Budget 152,680; Fiscal Year 2000/2001 Revised Budget 170,000; Fiscal Ye ar 2001/2002 Budget 180,000; Percent of change from Fiscal Year 2001 Revised is 5 point 9 percent. Transportation Development Act Funds: Fiscal Year 1999/2000 Actual 75,310; Fisca l Year 2000/2001 Adopted Budget 81,183; Fiscal Year 2000/2001 Revised Budget 81, 183; Fiscal Year 2001/2002 Budget 95,402; Percent of change from Fiscal Year 200 1 Revised is 17 point 5 percent. Fares: Fiscal Year 1999/2000 Actual 30,622; Fiscal Year 2000/2001 Adopted Budget 32,897; Fiscal Year 2000/2001 Revised Budget 32,897; Fiscal Year 2001/2002 Budg et 33,586; Percent of change from Fiscal Year 2001 Revised is 2 point1 percent. Expenses in thousand dollars: Total Expenses: Fiscal Year 1999/2000 Actual 252,657; Fiscal Year 2000/2001 Adop ted Budget 287,359; Fiscal Year 2000/2001 Revised Budget 292,906; Fiscal Year 20 01/2002 Budget 337,382; Percent of change from Fiscal Year 2001 Revised is 15 po int 2 percent. Major Expense Components: Wages and Benefits: Fiscal Year 1999/2000 Actual 179,744; Fiscal Year 2000/2001 Adopted Budget 190,823; Fiscal Year 2000/2001 Revised Budget 188,014; Fiscal Yea r 2001/2002 Budget 214,462; Percent of change from Fiscal Year 2001 Revised is 1 4 point 1 percent. A D A Paratransit: Fiscal Year 1999/2000 Actual 16,443; Fiscal Year 2000/2001 Ad opted Budget 20,403; Fiscal Year 2000/2001 Revised Budget 20,403; Fiscal Year 20 01/2002 Budget 25,152; Percent of change from Fiscal Year 2001 Revised is 23 poi nt 3 percent. Material and Supplies: Fiscal Year 1999/2000 Actual 13,481; Fiscal Year 2000/200 1 Adopted Budget 19,994; Fiscal Year 2000/2001 Revised Budget 18,934; Fiscal Yea r 2001/2002 Budget 17,948; Percent of change from Fiscal Year 2001 Revised is mi nus 5 point 2 percent. Professional Services: Fiscal Year 1999/2000 Actual 6,250; Fiscal Year 2000/2001 Adopted Budget 8,416; Fiscal Year 2000/2001 Revised Budget 17,847; Fiscal Year 2001/2002 Budget 14,617; Percent of change from Fiscal Year 2001 Revised is minu s 18 point 1 percent. Caltrain: Fiscal Year 1999/2000 Actual 6,850; Fiscal Year 2000/2001 Adopted Budg et 13,543; Fiscal Year 2000/2001 Revised Budget 13,808; Fiscal Year 2001/2002 Bu dget 14,300; Percent of change from Fiscal Year 2001 Revised is 3 point 6 percen t. Security: Fiscal Year 1999/2000 Actual 6,921; Fiscal Year 2000/2001 Adopted Budg et 8,012; Fiscal Year 2000/2001 Revised Budget 8,201; Fiscal Year 2001/2002 Budg et 9,313; Percent of change from Fiscal Year 2001 Revised is 13 point 6 percent. Other Services: Fiscal Year 1999/2000 Actual 7,603; Fiscal Year 2000/2001 Adopte

d Budget 7,471; Fiscal Year 2000/2001 Revised Budget 9,363; Fiscal Year 2001/200 2 Budget 8,666; Percent of change from Fiscal Year 2001 Revised is minus 7 point 4 percent. Fuel: Fiscal Year 1999/2000 Actual 5,093; Fiscal Year 2000/2001 Adopted Budget 6 ,249; Fiscal Year 2000/2001 Revised Budget 7,453; Fiscal Year 2001/2002 Budget 7 ,706; Percent of change from Fiscal Year 2001 Revised is 3 point 4 percent. Altamont Commuter Express: Fiscal Year 1999/2000 Actual 3,821; Fiscal Year 2000/ 2001 Adopted Budget 3,702; Fiscal Year 2000/2001 Revised Budget 3,702; Fiscal Ye ar 2001/2002 Budget 5,100; Percent of change from Fiscal Year 2001 Revised is 37 point 8 percent. Operating Cost Recovering Ratio: Fiscal Year 1999/2000 Actual 17 point 4 percent ; Fiscal Year 2000/2001 Adopted Budget 16 point 7 percent; Fiscal Year 2000/2001 Revised Budget 15 point 9 percent; Fiscal Year 2001/2002 Budget 14 point 2 perc ent. Number of Capital Projects: New Projects: Fiscal Year 2000/2001 Adopted Budget 20; Fiscal Year 2000/2001 Rev ised Budget 38; Fiscal Year 2001/2002 Budget 33; Percent of change from Fiscal Y ear 2001 Revised is minus13 point 2 percent. Augmented Projects: Fiscal Year 2000/2001 Adopted Budget 8; Fiscal Year 2000/200 1 Revised Budget 24; Fiscal Year 2001/2002 Budget 5; Percent of change from Fisc al Year 2001 Revised is minus 79 point 2 percent. Carryover Projects: Fiscal Year 2000/2001 Adopted Budget 186; Fiscal Year 2000/2 001 Revised Budget 178; Fiscal Year 2001/2002 Budget 213; Percent of change from Fiscal Year 2001 Revised is 19 point 7 percent. Total Number of Projects: Fiscal Year 2000/2001 Adopted Budget 214; Fiscal Year 2000/2001 Revised Budget 240; Fiscal Year 2001/2002 Budget 251; Percent of chang e from Fiscal Year 2001 Revised is minus 4 point 6 percent. Gross Project Expenditure in thousand dollars: New Projects: Fiscal Year 2000/2001 Adopted Budget 44,214; Fiscal Year 2000/2001 Revised Budget 59,653; Fiscal Year 2001/2002 Budget 61,281; Percent of change f rom Fiscal Year 2001 Revised is 2 point 7 percent. Augmented Projects: Fiscal Year 2000/2001 Adopted Budget 25,046; Fiscal Year 200 0/2001 Revised Budget 44,115; Fiscal Year 2001/2002 Budget 76,010; Percent of ch ange from Fiscal Year 2001 Revised is 72 point 3 percent. Carryover Projects: Fiscal Year 2000/2001 Adopted Budget 1138,272; Fiscal Year 2 000/2001 Revised Budget 1179,217; Fiscal Year 2001/2002 Budget 982,029; Percent of change from Fiscal Year 2001 Revised is minus 16 point 7 percent. Total Project Expenditures: Fiscal Year 2000/2001 Adopted Budget 1,207,532; Fisc al Year 2000/2001 Revised Budget 1,282,985; Fiscal Year 2001/2002 Budget 1,119,3 20; Percent of change from Fiscal Year 2001 Revised is minus 12 point 8 percent. VISION, MISSION, AND STRATEGIC PLAN In September 1995, the Board of Directors adopted a vision and mission statement for the Santa Clara Valley Transportation Authority (V T A). This statement pr ovides a framework for making future policy, planning and budgetary decisions. VISION STATEMENT The vision of the Santa Clara Valley Transportation Authority (V T A) is to prov

ide a transportation system that allows anyone to go anywhere in the region easi ly and efficiently. This statement contains the long-range vision for V T A and portrays the desired future V T A seeks to achieve. The vision is regional, including both the imme diate areas of Santa Clara County and the bordering Bay Area to which the County is linked economically, socially, and culturally. MISSION STATEMENT The mission of the Santa Clara Valley Transportation Authority (V T A) is to pro vide the public with a safe and efficient countywide transportation system. The system increases access and mobility, reduces congestion, improves the environm ent, and supports economic development, thereby enhancing quality of life. The mission or core purpose of V T A is to provide a "safe and efficient countyw ide transportation system." The emphasis is on an integrated transportation sys tem that comprises the full range of mobility options, from cars, buses, and rai l systems to walking and bicycle trips. The system will allow members of the pu blic to travel easily and comfortably to their destination by the most appropria te means. POLICY DIRECTIONS In adopting the vision and mission in 1995, the Board of Directors specified fou r key policy directions for V T A. In March 1999, the Board adopted a fifth poli cy direction related to the 1996 Measure A transportation program of projects. Integrate transportation and land use Use all transportation options Create a safe, convenient, reliable and high-quality bus/rail operation Build a regional perspective In partnership with the County of Santa Clara, implement the 1996 Measure A tran sportation program of projects STRATEGIC PLAN The Strategic Plan serves as the umbrella policy document for V T A and drives t he Recommended Budget and other documents for which V T A has responsibility, su ch as the Short Range Transit Plan (SRTP), the Congestion Management Program (C M P), and the Countywide Transportation Plan. The goals set forth in the Strate gic Plan are ambitious but attainable, and include mechanisms for measuring perf ormance. The Strategic Plan contains V T A's strategies for implementing the mission and achieving the vision. Five broad goal areas form the basis of the plan: Enhance our customer focus Improve mobility and access Integrate transportation and land use Maintain financial stability Increase employee ownership The divisional goals contained in this budget are consistent with the broad goal s established in the Strategic Plan. The Strategic Plan also includes a 10 year Business Plan for V T A. The Busines s Plan consists of a 10-year forecast of transit service levels, expenses, reven ues, and specific performance measures with annual benchmarks for monitoring pro gress towards attaining our goals. V T A's actual performance is analyzed each year against the performance measures, and the Business Plan is modified accordi ngly. V T A's current Business Plan was released in the later part of 1998.

CURRENT OPERATIONS The Santa Clara Valley Transportation Authority (V T A) is an independent public agency responsible for bus and light rail operation, regional commuter and inte r-city rail service, A D A paratransit service, congestion management, specific highway improvement projects, and countywide transportation planning. As such, V T A is both an accessible transit provider and a multi modal transportation pl anning and implementation organization involved with transit, roadways, bikeways , and pedestrian facilities. V T A provides transit services to the 326 square mile urbanized portion of Sant a Clara County that is comprised of 15 cities and the County of Santa Clara with a total population of more than 1.7 million residents. A historical summary of the county population by city is presented in Appendix C. V T A operates 79 bu s routes and two light rail transit (L R T) lines within this service area. In addition, V T A funds paratransit and privately operated shuttle services in the County and participates in providing inter-regional commuter rail and express b us services. All of the bus and rail vehicles are accessible for individuals wi th disabilities. In January 1995, V T A was designated as the Congestion Management Agency and ch anged from being exclusively a transit provider to an organization responsible f or countywide transportation planning, funding, and congestion management within the County. V T A, in partnership with the County of Santa Clara, assumed the responsibility for implementing the 1996 Measure B Transportation Improvement Program of trans it and highway improvement projects. In addition, V T A is responsible for imple menting the latest voter-approved transportation improvement measure - the 2000 Measure A, an essential element of V T P 2020. Map of Santa Clara County Transit Service Area -- Description The map depicts the urbanized area of Santa Clara County. It shows the locations of the following cities: Campbell, Cupertino, Gilroy, Los Altos, Los Altos Hill s, Los Gatos, Milpitas, Monte Sereno, Morgan Hill, Mountain View, Palo Alto, San Jose, Santa Clara, Saratoga and Sunnyvale. In addition, it shows the major high ways such as 17, 85, 87, 101, 237, 280, 680, and 880 traversing the County and s ome major surface streets in the County. The following section provides a summary of V T A's services: BUS OPERATIONS By the beginning of Fiscal Year 2001/2002, V T A will have an active bus fleet o f 500 diesel-powered buses, which includes 55 low-floor buses. The average age of these buses is about 7.83 years and the buses range from brand new to over 17 years old. There are approximately 4,700 bus stops and 600 shelters along the bus routes. V T A also maintains 15 park and ride lots -- five owned by V T A a nd ten provided under a lease, permit, or joint use agreement with other agencie s. Buses are operated and maintained from three operating divisions and an Over haul and Repair (OandR) facility: Cerone Operating Division, Don Pedro Chaboya O perating Division, North Operating Division, and Cerone OandR Division. LIGHT RAIL TRANSIT (L R T) With the opening of service on the initial segment of the Tasman East Light Rail Line in May 2001, V T A will be operating a 29.7-mile L R T system connecting t he Silicon Valley industrial areas of Mountain View, Sunnyvale, Santa Clara and North San Jose to residential areas in South San Jose. The L R T system will ha ve a total of 48 stations and 14 park and ride lots. It operates on three route s: service between Santa Teresa and the Baypointe Station in North San Jose, ser vice between Mountain View and the I 880/Milpitas Station in Milpitas and shuttl

e service between Almaden and Ohlone-Chynoweth Stations in South San Jose. A fl eet of 50 light rail vehicles is operated on the L R T system. During the month s of April through October, weather permitting, V T A also operates five histori c trolleys from the Civic Center Station to the Convention Center Station. All light rail vehicles and historic trolleys are stored and maintained at the Guada lupe Operating Division near downtown San Jose. PARATRANSIT SERVICES In 1992, V T A implemented a paratransit system, which operates throughout the C ounty. V T A contracts with Outreach and Escort, Inc., to provide the service. Eligible riders call Outreach to schedule their trips. Outreach then assigns t he trips based on the most appropriate mode that can meet the riders' needs: tax i, accessible van, or transfer to or from fixed-route. V T A is in full complia nce with the Americans with Disabilities Act (A D A). Since January 1, 1999, V T A has offered the Same Day paratransit service, which allows qualified individuals to arrange and take trips on the day of the reques t to provide for their urgent or unplanned transportation needs. CONTRACTED AND INTERAGENCY TRANSIT SERVICES V T A is also a partner in various ventures that expand the transportation optio ns for our customers. These relationships include commuter rail, inter-county e xpress bus lines, and rail feeder services. They are operated either by contrac t or through cooperative agreements. Caltrain/Peninsula Corridor Joint Powers Board (P C J P B) Caltrain is the commuter rail service provided by the P C J P B, which is govern ed by representatives from San Francisco, San Mateo, and Santa Clara counties. It operates between Gilroy and San Francisco. Seventy-eight trains operate betw een San Jose Diridon Station and San Francisco each weekday, with 62 of these tr ains extended to the Tamien Station in San Jose where a connection can be made t o the L R T system. Connection to the L R T system can also be made at the Moun tain View Caltrain Station. Eight peak-hour weekday trains (four northbound in the morning and four southbound in the evening) extend Caltrain from Tamien stat ion to Gilroy. There are 33 stations along the line. The system uses diesel-po wered locomotives. The funding share of the operating costs apportioned to each member agency is based upon morning peak period boardings that serve in each cou nty, currently about 41percent for V T A. Altamont Commuter Express Rail Service The Altamont Commuter Express (A C E) rail service provides peak hour, weekday c ommuter rail service from the Central Valley to Santa Clara County (three mornin g and three afternoon commuter trains). V T A, the San Joaquin Regional Rail Com mission, and the Alameda County Congestion Management Agency administer the serv ice under a Joint Exercise of Powers Agreement. The 85-mile rail line includes ten stations located in Stockton, Lathrop, Tracy, Livermore (2), Pleasanton, Fre mont, Great America, Santa Clara and San Jose Diridon Station. V T A provides te n free shuttles to transport A C E riders between the Great America and Diridon stations and nearby employment sites. The funding share of the operating costs apportioned to each participating county is based upon the proportional share of total daily boardings and alightings that occur in each county (currently about 46 percent for V T A). Capitol Corridor Intercity Rail Service The Capitol Corridor Intercity Rail service began in December 1991 and is a 170mile train corridor from Auburn and Sacramento to San Jose, through Placer, Sacr amento, Yolo, Solano, Contra Costa, Alameda and Santa Clara Counties. Operating on the Union Pacific railroad tracks, Capitol Corridor service consists of four daily round trips from Sacramento to San Jose and three daily round trips from Sacramento to Oakland with connecting bus service to and from San Jose. One rou

nd trip per day extends beyond Sacramento to Auburn. The train service parallels the Interstate 80 corridor between Sacramento and Oa kland, and Interstate 880 between Oakland and San Jose. Service includes stops in Roseville, Sacramento, Davis, Suisun/Fairfield, Martinez, Richmond, Berkeley, Emeryville, Oakland, Hayward, Fremont, Santa Clara at Great America, and San Jo se Diridon Station. On July 1, 1998, the Capitol Corridor Joint Powers Authorit y (C C J P A), which is comprised of representatives from the eight counties ser ved by the corridor, assumed responsibility for the service. Under contract wit h the C C J P A, the Bay Area Rapid Transit District (BART) manages the service and Amtrak operates the service on tracks owned by Union Pacific Railroad. The f unding is provided by the State of California. Inter-county Bus Services V T A sponsors two inter-county bus services through cooperative arrangements wi th other transit systems. The Dumbarton Express is a transbay express route operating between the Union Ci ty BART Station and the Stanford Research Park in Palo Alto. It provides the on ly regularly scheduled public transit service over the Dumbarton Bridge. A cons ortium comprised of representatives from the Alameda Contra Costa Transit Distri ct (A C Transit), the San Francisco Bay Area Rapid Transit District (BART), the City of Union City, the San Mateo County Transit District (SamTrans), and V T A underwrite the net operating costs of the service. This service is contracted o ut to a private transit provider. SamTrans and V T A are responsible for 50 perc ent of the net operating costs and the other East Bay transit operators are resp onsible for the rest. The 50 percent of the operating costs is apportioned based upon all day boardings in the Santa Clara County and San Mateo County (currentl y about 36 percent for V T A). Express service over Highway 17 between Santa Cruz and downtown San Jose is fund ed and operated through an agreement between the Santa Cruz Metropolitan Transit District and V T A. Santa Cruz Metro operates this service. The two agencies share the net operating costs equally. Rail Shuttle Program Under this program, V T A offers financial assistance to employers that wish to operate shuttle bus service between L R T stations and nearby employment centers . The service is operated through a private contractor provided by V T A or the employer. Shuttles, usually vans, operate trips carrying employees from light rail in the morning to work and back again in the afternoon. Funding to operate this program is provided by the employer (minimum of 25 percent), V T A (typica lly 30 percent), and grants (45 percent) from the Transportation Fund for Clean Air Act (A B 4 3 4). Downtown and Arena Shuttle Programs V T A operates a free shuttle (D A S H) on weekdays between the downtown San Jos e Transit Mall, San Jose State University, and the San Jose Diridon Train Statio n. V T A, the Transportation Fund for Clean Air Act, the City of San Jose, and the San Jose Downtown Association fund this service. In addition, V T A operate s a free shuttle service from the downtown San Jose Transit Mall to all public e vents held in the Compaq Center (formerly San Jose Arena). The number of buses operating and frequency of service depend upon the event. San Jose Airport Flyer Service V T A, in partnership with the City of San Jose, provides free Airport Flyer bus service connecting San Jose International Airport terminals and airport employe e parking lots with V T A's Metro/Airport Light Rail Station and the Santa Clara Caltrain Station. The City of San Jose and V T A equally share the operating c osts for this service.

CONGESTION MANAGEMENT V T A, as the Congestion Management Agency for Santa Clara County, is responsibl e for coordinating and prioritizing projects for state and federal transportatio n funds, administering the Bay Area Air Quality Management Program, and coordina ting land use and other transportation planning. 1996 MEASURE B TRANSPORTATION IMPROVEMENT PROGRAM (M B T I P) In November 1996, the voters in Santa Clara County overwhelmingly approved Measu re A, an advisory measure listing an ambitious program of transportation improve ments for Santa Clara County. Also approved on the same ballot, Measure B autho rized the County Board of Supervisors to collect a nine-year half-cent sales tax for general county purposes. Subsequently, the County Board of Supervisors ado pted a resolution dedicating the tax for Measure A projects. Collection of the t ax began in April 1997; however, use of the revenue was delayed pending the outc ome of litigation challenging the legality of the sales tax. In August 1998, th e California courts upheld the tax allowing the implementation of the Measure A transportation projects to move forward. In February 2000, the V T A Board of Directors approved a Master Agreement forma lizing our partnership with the County of Santa Clara to implement the 1996 Meas ure B Transportation Improvement Program. With this partnership in place, the C ounty and V T A are in a position to complete a transportation program valued at over 1 point 6 billion dollars. V T A will be responsible for project implemen tation and management of the transit and highway projects and will assist in the administration of the pavement management and bicycle elements of the program. A more detailed description of the program elements can be found in Sections IV and V. 2000 MEASURE A TRANSPORTATION IMPROVEMENT PROGRAM In August 2000, the V T A Board of Directors approved placing a measure on the N ovember 7, 2000, General Election ballot allowing Santa Clara County voters the opportunity to vote on transportation improvements funded by a 30 year half-cent sales tax to take effect after the 1996 Measure B sales tax expires (March 31, 2006) in the county. More than 70percent of the voters approved the 2000 Measure A. It is estimated that $6.5 billion (Fiscal Year 2000 constant dollars) will be co llected. The revenue from this Measure may be used to finance the transit projec ts and operations specified in 2000 Measure A and listed in V T A's V T P 2020 T ransportation Plan and Expenditure Program. V T P 2020 provides for a balanced t ransportation system consisting of transit, roadway, bicycle and pedestrian impr ovements. The activities specified in 2000 Measure A are: Connect BART to Milpitas, San Jose, and Santa Clara; Build a rail connection from San Jose International Airport to BART, Caltrain, l ight rail; Purchase vehicles for disabled access, senior safety, clean air buses; Provide light rail throughout Santa Clara County; Expand and electrify Caltrain; and Increase rail and bus services. Staff is currently developing the implementation details of the program for adop tion by the V T A Board of Directors. Following is a description of V T A's organizational chart: The Board of Directors is supported by the General Manager, Peter M. Cipolla, an d the General Counsel, Suzanne Gifford.

Operations, Director, Frank Martin Fiscal Resources, Chief Financial Officer, Scott Buhrer Rail Design and Construction, Director, Jack Collins Congestion Management and Highway Programs, Director, Michael P. Evanhoe Marketing and Customer Service, Director, Anne Catherine Vinickas Human Resources, Director, Kaye L. Evleth Planning and Development, Director, Jim Pierson SANTA CLARA VALLEY TRANSPORTATION AUTHORITY FISCAL YEAR 2001/2002 BUDGET STATEME NT OF REVENUES AND EXPENSES IN THOUSAND DOLLARS Fares: Fiscal Year 1999/2000 Actual 30,622; Fiscal Year 2000/2001 Adopted Budget 32,897; Fiscal Year 2000/2001 Revised Budget 32,897; Fiscal Year 2001/2002 Budg et 33,586; Percent of change from Fiscal Year 2001 Revised is 2 point 1 percent. 1/2 Cent Sales Tax: Fiscal Year 1999/2000 Actual 166,764; Fiscal Year 2000/2001 Adopted Budget 152,680; Fiscal Year 2000/2001 Revised Budget 170,000 (* current estimate is 185,000); Fiscal Year 2001/2002 Budget 180,000; Percent of change fr om Fiscal Year 2001 Revised is 5 point 9 percent. TDA: Fiscal Year 1999/2000 Actual 75,310; Fiscal Year 2000/2001 Adopted Budget 8 1,183; Fiscal Year 2000/2001 Revised Budget 81,183; Fiscal Year 2001/2002 Budget 95,402; Percent of change from Fiscal Year 2001 Revised is 17 point 5 percent. STA: Fiscal Year 1999/2000 Actual 4,364; Fiscal Year 2000/2001 Adopted Budget 4, 263; Fiscal Year 2000/2001 Revised Budget 4,263; Fiscal Year 2001/2002 Budget 7, 681; Percent of change from Fiscal Year 2001 Revised is 80 point 2 percent. Federal Operating Grants : Fiscal Year 1999/2000 Actual 6,051; Fiscal Year 2000/ 2001 Adopted Budget 7,582; Fiscal Year 2000/2001 Revised Budget 7,582; Fiscal Ye ar 2001/2002 Budget 7,504; Percent of change from Fiscal Year 2001 Revised is mi nus 1 point 0 percent. State Operating Grants : Fiscal Year 1999/2000 Actual 766; Fiscal Year 2000/2001 Adopted Budget 1,080; Fiscal Year 2000/2001 Revised Budget 1,080; Fiscal Year 2 001/2002 Budget 1,355; Percent of change from Fiscal Year 2001 Revised is 25 poi nt 5 percent. Investment Earnings: Fiscal Year 1999/2000 Actual 8,286; Fiscal Year 2000/2001 A dopted Budget 10,702; Fiscal Year 2000/2001 Revised Budget 10,702; Fiscal Year 2 001/2002 Budget 10,850; Percent of change from Fiscal Year 2001 Revised is 1 poi nt 4 percent. Advertising Income: Fiscal Year 1999/2000 Actual 3,831; Fiscal Year 2000/2001 Ad opted Budget 4,865; Fiscal Year 2000/2001 Revised Budget 4,309; Fiscal Year 2001 /2002 Budget 4,608; Percent of change from Fiscal Year 2001 Revised is 6 point 9 percent. Other Income: Fiscal Year 1999/2000 Actual 5,882; Fiscal Year 2000/2001 Adopted Budget 3,075; Fiscal Year 2000/2001 Revised Budget 4,798; Fiscal Year 2001/2002 Budget 5,522; Percent of change from Fiscal Year 2001 Revised is 15 point 1 perc ent. Total Revenues: Fiscal Year 1999/2000 Actual 301,876; Fiscal Year 2000/2001 Adop ted Budget 298,327; Fiscal Year 2000/2001 Revised Budget 316,814; Fiscal Year 20 01/2002 Budget 346,508; Percent of change from Fiscal Year 2001 Revised is 9 poi nt 4 percent. Wages and Salaries: Fiscal Year 1999/2000 Actual 104,029; Fiscal Year 2000/2001

Adopted Budget 129,704; Fiscal Year 2000/2001 Revised Budget 130,621; Fiscal Yea r 2001/2002 Budget 143,975; Percent of change from Fiscal Year 2001 Revised is 1 0 point 2 percent. Benefits: Fiscal Year 1999/2000 Actual 75,715; Fiscal Year 2000/2001 Adopted Bud get 66,178; Fiscal Year 2000/2001 Revised Budget 65,452; Fiscal Year 2001/2002 B udget 78,265; Percent of change from Fiscal Year 2001 Revised is 19 point 6 perc ent. Wages, Salaries and Benefits Savings: Fiscal Year 1999/2000 Actual 0; Fiscal Yea r 2000/2001 Adopted Budget minus 5,059; Fiscal Year 2000/2001 Revised Budget min us 8,059; Fiscal Year 2001/2002 Budget minus 7,778; Percent of change from Fisca l Year 2001 Revised is minus 3 point 5 percent. Materials and Supplies: Fiscal Year 1999/2000 Actual 13,481; Fiscal Year 2000/20 01 Adopted Budget 19,994; Fiscal Year 2000/2001 Revised Budget 18,934; Fiscal Ye ar 2001/2002 Budget 17,948; Percent of change from Fiscal Year 2001 Revised is m inus 5 point 2 percent. Security: Fiscal Year 1999/2000 Actual 6,921; Fiscal Year 2000/2001 Adopted Budg et 8,012; Fiscal Year 2000/2001 Revised Budget 8,201; Fiscal Year 2001/2002 Budg et 9,313; Percent of change from Fiscal Year 2001 Revised is 13 point 6 percent. Professional and Special Services: Fiscal Year 1999/2000 Actual 6,250; Fiscal Ye ar 2000/2001 Adopted Budget 8,416; Fiscal Year 2000/2001 Revised Budget 17,847; Fiscal Year 2001/2002 Budget 14.617; Percent of change from Fiscal Year 2001 Rev ised is minus 18 point 1 percent. Other Services: Fiscal Year 1999/2000 Actual 7,603; Fiscal Year 2000/2001 Adopte d Budget 7,471; Fiscal Year 2000/2001 Revised Budget 9,363; Fiscal Year 2001/200 2 Budget 8,666; Percent of change from Fiscal Year 2001 Revised is minus 7 point 4 percent. Fuel: Fiscal Year 1999/2000 Actual 5,093; Fiscal Year 2000/2001 Adopted Budget 6 ,249; Fiscal Year 2000/2001 Revised Budget 7,453; Fiscal Year 2001/2002 Budget 7 ,706; Percent of change from Fiscal Year 2001 Revised is 3 point 4 percent. Traction Power: Fiscal Year 1999/2000 Actual 597; Fiscal Year 2000/2001 Adopted Budget 2,711; Fiscal Year 2000/2001 Revised Budget 2,711; Fiscal Year 2001/2002 Budget 3,297; Percent of change from Fiscal Year 2001 Revised is 21 point 6 perc ent. Tires: Fiscal Year 1999/2000 Actual 1,264; Fiscal Year 2000/2001 Adopted Budget 1,034; Fiscal Year 2000/2001 Revised Budget 1,034; Fiscal Year 2001/2002 Budget 1,084; Percent of change from Fiscal Year 2001 Revised is 4 point 8 percent. Utilities: Fiscal Year 1999/2000 Actual 2,540; Fiscal Year 2000/2001 Adopted Bu dget 1,721; Fiscal Year 2000/2001 Revised Budget 1,721; Fiscal Year 2001/2002 Bu dget 2,364; Percent of change from Fiscal Year 2001 Revised is 37 point 4 percen t. Insurance: Fiscal Year 1999/2000 Actual 2,403; Fiscal Year 2000/2001 Adopted Bud get 1,562; Fiscal Year 2000/2001 Revised Budget 1,562; Fiscal Year 2001/2002 Bud get 3,273; Percent of change from Fiscal Year 2001 Revised is 109 point 5 percen t. Data Processing: Fiscal Year 1999/2000 Actual 2,137; Fiscal Year 2000/2001 Adopt ed Budget 2,249; Fiscal Year 2000/2001 Revised Budget 3,555; Fiscal Year 2001/20 02 Budget 3,617; Percent of change from Fiscal Year 2001 Revised is 1 point 7 pe

rcent. Office Expense: Fiscal Year 1999/2000 Actual 800; Fiscal Year 2000/2001 Adopted Budget 786; Fiscal Year 2000/2001 Revised Budget 815; Fiscal Year 2001/2002 Budg et 846; Percent of change from Fiscal Year 2001 Revised is 3 point 8 percent. Communications: Fiscal Year 1999/2000 Actual 2,030; Fiscal Year 2000/2001 Adopte d Budget 2,023; Fiscal Year 2000/2001 Revised Budget 1,840; Fiscal Year 2001/200 2 Budget 1,882; Percent of change from Fiscal Year 2001 Revised is 2 point 3 per cent. Employee Related Expense: Fiscal Year 1999/2000 Actual 1,088; Fiscal Year 2000/2 001 Adopted Budget 1,988; Fiscal Year 2000/2001 Revised Budget 2,072; Fiscal Yea r 2001/2002 Budget 2,459; Percent of change from Fiscal Year 2001 Revised is 18 point 7 percent. Leases and Rents: Fiscal Year 1999/2000 Actual 637; Fiscal Year 2000/2001 Adopte d Budget 684; Fiscal Year 2000/2001 Revised Budget 720; Fiscal Year 2001/2002 Bu dget 828; Percent of change from Fiscal Year 2001 Revised is 15 point 0 percent. Contingency: Fiscal Year 1999/2000 Actual 0; Fiscal Year 2000/2001 Adopted Budge t 7,153; Fiscal Year 2000/2001 Revised Budget 4,000; Fiscal Year 2001/2002 Budge t 10,423; Percent of change from Fiscal Year 2001 Revised is 160 point 6 percent . Miscellaneous: Fiscal Year 1999/2000 Actual 664; Fiscal Year 2000/2001 Adopted Budget 1,742; Fiscal Year 2000/2001 Revised Budget 1,297; Fiscal Year 2001/2002 Budget 2,790; Percent of change from Fiscal Year 2001 Revised is 115 point 1 per cent. Reimbursements: Fiscal Year 1999/2000 Actual minus 10,076; Fiscal Year 2000/2001 Adopted Budget minus 17,493; Fiscal Year 2000/2001 Revised Budget minus 19,207; Fiscal Year 2001/2002 Budget minus 15,594; Percent of change from Fiscal Year 2 001 Revised is minus 18 point 8 percent. Operating Expenses: Fiscal Year 1999/2000 Actual 223,176; Fiscal Year 2000/2001 Adopted Budget 247,125; Fiscal Year 2000/2001 Revised Budget 251,932; Fiscal Yea r 2001/2002 Budget 289,981; Percent of change from Fiscal Year 2001 Revised is 1 5 point 1 percent. A D A Paratransit: Fiscal Year 1999/2000 Actual 16,443; Fiscal Year 2000/2001 Ad opted Budget 20,403; Fiscal Year 2000/2001 Revised Budget 20,403; Fiscal Year 20 01/2002 Budget 25,152; Percent of change from Fiscal Year 2001 Revised is 23 poi nt 3 percent. Caltrain: Fiscal Year 1999/2000 Actual 7,850; Fiscal Year 2000/2001 Adopted Budg et 13,543; Fiscal Year 2000/2001 Revised Budget 13,808; Fiscal Year 2001/2002 Bu dget 14,300; Percent of change from Fiscal Year 2001 Revised is 3 point 6 percen t. Light Rail Shuttles: Fiscal Year 1999/2000 Actual 1,013; Fiscal Year 2000/2001 A dopted Budget 1,223; Fiscal Year 2000/2001 Revised Budget 1,223; Fiscal Year 200 1/2002 Budget 1,439; Percent of change from Fiscal Year 2001 Revised is 17 point 7 percent. Altamont Commuter Express: Fiscal Year 1999/2000 Actual 3,821; Fiscal Year 2000/ 2001 Adopted Budget 3,702; Fiscal Year 2000/2001 Revised Budget 3,702; Fiscal Ye ar 2001/2002 Budget 5,100; Percent of change from Fiscal Year 2001 Revised is 37 point 8 percent.

Highway 17 Express: Fiscal Year 1999/2000 Actual 420; Fiscal Year 2000/2001 Adop ted Budget 545; Fiscal Year 2000/2001 Revised Budget 545; Fiscal Year 2001/2002 Budget 564; Percent of change from Fiscal Year 2001 Revised is 3 point 5 percent . Dumbarton Express: Fiscal Year 1999/2000 Actual 151; Fiscal Year 2000/2001 Adopt ed Budget 160; Fiscal Year 2000/2001 Revised Budget 160; Fiscal Year 2001/2002 B udget 197; Percent of change from Fiscal Year 2001 Revised is 23 point 1 percent . Contribution to Other Agencies: Fiscal Year 1999/2000 Actual 373; Fiscal Year 20 00/2001 Adopted Budget 485; Fiscal Year 2000/2001 Revised Budget 485; Fiscal Yea r 2001/2002 Budget 501; Percent of change from Fiscal Year 2001 Revised is 3 poi nt 3 percent. Other Expense: Fiscal Year 1999/2000 Actual 410; Fiscal Year 2000/2001 Adopted B udget 173; Fiscal Year 2000/2001 Revised Budget 648; Fiscal Year 2001/2002 Budge t 148; Percent of change from Fiscal Year 2001 Revised is minus 77 point 2 perce nt. Other Expenses: Fiscal Year 1999/2000 Actual 29,481; Fiscal Year 2000/2001 Adopt ed Budget 40,234; Fiscal Year 2000/2001 Revised Budget 40,974; Fiscal Year 2001/ 2002 Budget 47,401; Percent of change from Fiscal Year 2001 Revised is 15 point 7 percent. Total Expenses: Fiscal Year 1999/2000 Actual 252,657; Fiscal Year 2000/2001 Adop ted Budget 287,359; Fiscal Year 2000/2001 Revised Budget 292,906; Fiscal Year 20 01/2002 Budget 337,382; Percent of change from Fiscal Year 2001 Revised is 15 po int 2 percent. Surplus/(Deficit) to Reserves: Fiscal Year 1999/2000 Actual 49,219; Fiscal Year 2000/2001 Adopted Budget 10,968; Fiscal Year 2000/2001 Revised Budget 23,908; Fi scal Year 2001/2002 Budget 9,126; Percent of change from Fiscal Year 2001 Revise d is minus 61 point 8 percent. OPERATING BUDGET The Fiscal Year 2001/2002 Operating Budget is a conservative budget. In the curr ent environment of economic uncertainty, it is of the utmost importance that an organization be prepared and safeguard its resources in order to ride out busine ss cycles intact. V T A, a public agency relying mainly on sales tax revenues an d located in one of the most volatile economic areas in the U.S. - the Silicon V alley - is vulnerable to an economic downturn. Consequently, we have chosen cons ervative assumptions in developing the Fiscal Year 2001/2002 budget. The details are provided in the Major Budget Assumptions and Explanations section. Total revenue is projected at 346 point 5 million dollars, an increase of 9 poin t 4 percent over the Fiscal Year 2000/2001 Revised Budget. Significant areas of revenue increase include: 10 million dollars in the half cent sales tax revenue ; 14 point 2 million dollars in the quarter-cent sales tax revenue (also known a s Transportation Development Act fund or T D A in short); and 3 point 4 million dollars in State Transit Assistance (S T A). In Fiscal Year 2001/2002, expenses have increased by 15 point 2 percent and tota l 337 point 4 million dollars. Primary areas of expense increase are: 26 point 4 million dollars increase in salaries and benefits; 6 point 4 million dollars f or an increase in the General Manager's contingency fund; 4 point 7 million doll ars of additional funding for more A D A services; and 3 point 6 million dollars reduction in reimbursements.

The projected operating recovery ratio, which measures the proportion of operati ng expense covered by operating revenue (excluding all purchased and interagency services, and interest income and expense), is 14 point 2 percent (which we bel ieve is understated as a result of the conservative budget assumptions). BUDGET POLICIES, PRACTICES, AND METHODOLOGIES This budget consists of three funds: the Transit Enterprise Fund that accounts f or V T A's regular operations, the Congestion Management Program, and the 1996 M easure B Transportation Improvement Program. The budget for the Transit Enterpri se Fund is developed on an accrual basis. Revenues are recognized when earned, and expenses are recognized when incurred. The Congestion Management Program is budgeted on a modified accrual basis of accounting. The 1996 Measure B Transpor tation Improvement Program is budgeted as capital projects, which are based upon total expected completion costs. The Fiscal Year 2001/2002 Budget was developed using a modified-base budget appr oach. Last year's Adopted Budget served as the baseline for the development of the current budget. One time major items were subtracted from, and mid-year bud get modifications and significant adjustments were added to the Adopted Budget. Then a 4 percent cost escalation factor representing inflation was applied as a ppropriate to the non labor expense items. Labor-related expenses were increased according to the terms of the collective bargaining agreements. The result beca me the Baseline Budget - the extent to which V T A must commit resources to cont inue its current level of operations. For selected major cost items, such as fue l expenditure, we developed the budgets using a zero based budgeting approach. N ew activities or programs were submitted as supplemental budget requests. V T A senior management reviewed these items and, to the extent approved, items were a dded to the Baseline Budget to complete the Fiscal Year 2001/2002 Recommended Bu dget. Last September, we started the Fiscal Year 2001/2002 operating and capital budge ting process by developing the major budget assumptions such as the inflation ra te, benefit rates, and sales tax receipts. After review by V T A senior managem ent, the key assumptions were submitted to the Administration and Finance Commit tee and the Board of Directors for approval. In October and November respectivel y, the Budget Department sent out capital and operating budget preparation packa ges to the departmental managers. The departmental managers returned their comp leted baseline budgets, supplemental budget requests, and other forms in Decembe r 2000. During this period, the Budget Department assisted in generating depart mental budgets. V T A senior management conducted budget review sessions with e ach division in late January and early February to discuss the budget requests. After the review, revisions were forwarded to the Budget Department for inclusi on in the Recommended Budget. Starting from February, the divisions and the Bud get Department coordinated to draft the Recommended Budget book. The final Reco mmended Budget is distributed to the public for review and comments. As shown b elow, the public is also given opportunities to provide input in the budget proc ess. A workshop will be conducted in May for the Board members to review the bu dget. The Administration and Finance Committee will consider the public and Boar d comments on May 18, and the Board is scheduled to adopt the budget at its June 7 meeting. Schedule for the Fiscal Year 2001/2002 Budget Process: September 2000, Major budget assumptions developed. October and November, Budget preparation packages distributed. November through January 2001, Departmental baseline budgets, supplemental budge t requests, capital budget requests, and other budget forms completed. Late January and early February, Budget requests reviewed by SPG. March, Budget revisions and the Recommended Budget generated. April 5, Recommended Budget published and distributed.

April 20, Budget presented to Administration and Finance Committee. April 24, May 1 and 8, Public hearing meetings held. May 3, Workshop for Board members. May 18, Administration and Finance Committee review. June 7, Board of Directors final review adoption. If budget changes are necessary during the fiscal year, a department manager sub mits a budget modification request with all the necessary supporting documents t o the Budget Department. After determining the fiscal impacts, concurring with the request, and obtaining the required management approvals, the Budget is modi fied. A mid year budget review will be included in the January 2002 Board workshop. Th e review provides the Board and the public with an opportunity to evaluate V T A 's actual performance after several months of operations. In addition, it presen ts a forum for V T A management to report to the Board any major budgetary chang es that have been implemented since the budget adoption and to request resource reallocations that are warranted due to changes caused by both internal and exte rnal factors. MAJOR BUDGET ASSUMPTIONS AND EXPLANATIONS REVENUES Regional Economic Growth - Half Cent Sales Tax and T D A The half-cent local sales tax and a quarter-cent state sales tax (also known as the Transportation Development Act or T D A) are the two most important income s ources to V T A. About 80 percent of V T A's operating revenues are generated fr om them. They are driven by the local economy. Besides being the prime source of our operating income, sales tax revenues are extremely important to us because our ability to raise revenue from other sources is very limited. The quarter cen t sales tax is derived from the same tax base as the half cent sales tax but it is collected by the State, and the proceeds are administered and allocated by th e Metropolitan Transportation Commission (M T C). V T A receives the T D A fund s through the County of Santa Clara. The cash flow fluctuates differently from the half cent tax because the annual receipts are based on forecasts, which are adjusted in subsequent years for overfunding or underfunding in prior years. A pie chart shows the percentage of the major revenue sources: Half cent sales tax, 51 point 9 percent T D A, 27 point 5 percent Fares, 9 point 7 percent Other, 10 point 8 percent We adjusted our Fiscal Year 2001/2002 sales tax growth projection from 5 point 0 percent, as stated in the Fiscal Year 2001/2002 Budget Assumptions, to 5 point 9 percent when compared to the Fiscal Year 2000/01 Revised Budget of 170 million dollars and a negative 2 point 7 percent reduction to the final revised Fiscal Year 2000/01 forecast of 185 million dollars, which is 15 million dollars over t he Revised Budget. Our actual sales tax receipts in the first two quarters of Fi scal Year 2000/2001 have already exceeded our Revised Budget by a surprising 18 point 4 million dollars. However, we believe consumers in this county will event ually become less confident and limit spending, beginning in the third quarter o f the current fiscal year, as businesses are restructuring and laying off employ ees to return to profitability. While Fiscal Year 2000/2001 will be another soli d growth year for V T A in sales tax receipts, we project negative growth year F iscal Year 2001/2002. A line and bar chart shows the annual half cent sales tax receipts and yearly pe rcentage changes (dollars in million):

1991 Annual Receipts 95 point 1; Year to Year Percent of Change is not applicabl e 1992 Annual Receipts 88 point 7; Year to Year Percent of Change is minus 6 point 7 1993 Annual Receipts 90 point 5; Year to Year Percent of Change 2 point 0 1994 Annual Receipts 95 point 1; Year to Year Percent Change 5 point 1 1995 Annual Receipts 100 point 6; Year to Year Percent Change 5 point 8 1996 Annual Receipts 122 point 3; Year to Year Percent Change 21 point 6 1997 Annual Receipts 129; Year to Year Percent Change 5 point 5 1998 Annual Receipts 138 point 4; Year to Year Percent Change 7 point 3 1999 Annual Receipts 143 point 7; Year to Year Percent Change 3 point 8 2000 Annual Receipts 166 point 8; Year to Year Percent Change 16 point 0 2001 Final Revised Budget Annual Receipts 185 point 0; Year to Year Percent Chan ge 10 point 9 2002 Budget Annual Receipts 175 point 0; Year to Year Percent Change minus 2 poi nt 7 We believe consumer spending will remain weak going into the first quarter of Fi scal Year 2001/2002. By the second quarter, with the impacts of the three intere st rate adjustments orchestrated by the Federal Reserve in January and March beg in to take effect, and coupled with a reduction of excess inventory, the economy will begin to emerge from the business slowdown. Gradually, consumer confidence will recoup but we expect a weak recovery in Fiscal Year 2001/2002. We project sales tax receipts of 180 million dollars in Fiscal Year 2001/2002, a decline of 5 million dollars or 2 point 7 percent from the final Fiscal Year 2000/2001 rev ised budget. According to M T C, V T A's T D A funds will increase to 95,402,000 dollars, a 1 7 point 5 percent increase over the Fiscal Year 2000/2001 allotment, primarily d ue to underestimating in prior years. However, it is perceivable that the allotm ent for Fiscal Year 2002/2003 will be significantly less due to the sudden slowd own of the economy this year. Ridership and Fares Fiscal Year 2001/2002 is forecast to be another strong ridership growth year for V T A. Ridership is expected to hit another record high of 58 point 8 million, an increase of about 3 point 2 percent over the Fiscal Year 2000/2001 revised e stimate. In the middle of Fiscal Year 2000/2001, we modified the Transit Servic e Plan due to a severe shortage of qualified personnel. However, we will resume our service expansion plans when staffing levels have stabilized. Bus ridership is projected to grow at a modest 2 point 1 percent but light rail ridership shou ld have a strong growth of 8 point 7 percent, largely attributable to the openin g of the Tasman West Light Rail Extension. Fare revenue for Fiscal Year 2001/2002 is estimated at 33,586,000 dollars, which is a 2 point 1 percent increase over the Fiscal Year 2000/2001 revised forecast of 32,897,000 dollars. The Eco Pass program continues to grow both with employers and with our new Resi dential Eco Pass program. As of this writing, we are serving over 103,000 emplo yees and residents in the area. Our new Caltrain pilot program has also been ex tremely well received. In Fiscal Year 2001/2002, we project that the average fare per boarding will dec rease slightly to 57 cents. Ridership in thousands: Bus: Fiscal Year 1997/1998 Actual 46,118; Fiscal Year 1998/99 Actual 47,487; Fis cal Year 1999/2000 Actual 47,008; Fiscal Year 2000/2001 Adopted Budget 49,500; F iscal Year 2000/2001 Revised Budget 47,800; Fiscal Year 2001/2002 Budget 48,800.

Percent of Change: Fiscal Year 1998/99 Actual 3 point 0 percent; Fiscal Year 199 9/2000 Actual minus 1 point 0 percent; Fiscal Year 2000/2001 Adopted Budget 5 po int 3 percent; Fiscal Year 2000/2001 Revised Budget 1 point 7 percent; Fiscal Ye ar 2001/2002 Budget 2 point 1 percent. Light Rail: Fiscal Year 1997/1998 Actual 6,878; Fiscal Year 1998/99 Actual 6,863 ; Fiscal Year 1999/2000 Actual 7,914; Fiscal Year 2000/2001 Adopted Budget 8,500 ; Fiscal Year 2000/2001 Revised Budget 9,200; Fiscal Year 2001/2002 Budget 10,00 0. Percent of Change: Fiscal Year 1998/99 Actual minus 0 point 2 percent; Fiscal Ye ar 1999/2000 Actual 15 point 3 percent; Fiscal Year 2000/2001 Adopted Budget 7 p oint 4 percent; Fiscal Year 2000/2001 Revised Budget 16 point 2 percent; Fiscal Year 2001/2002 Budget 8 point 7 percent. Total Ridership: Fiscal Year 1997/1998 Actual 52,996; Fiscal Year 1998/99 Actual 54,350; Fiscal Year 1999/2000 Actual 54,922; Fiscal Year 2000/2001 Adopted Budg et 58,000; Fiscal Year 2000/2001 Revised Budget 57,000; Fiscal Year 2001/2002 Bu dget 58,800. Percent of Change: Fiscal Year 1998/99 Actual 2 point 6 percent; Fiscal Year 199 9/2000 Actual 1 point 1 percent; Fiscal Year 2000/2001 Adopted Budget 5 point 6 percent; Fiscal Year 2000/2001 Revised Budget 3 point 8 percent; Fiscal Year 200 1/2002 Budget 3 point 2 percent. Fare Revenue in thousand dollars: Fiscal Year 1997/1998 Actual 27,201; Fiscal Ye ar 1998/99 Actual 27,070; Fiscal Year 1999/2000 Actual 30,622; Fiscal Year 2000/ 2001 Adopted Budget 32,897; Fiscal Year 2000/2001 Revised Budget 32,897; Fiscal Year 2001/2002 Budget 33,586. Percent of Change: Fiscal Year 1998/99 Actual minus 0 point 5 percent; Fiscal Ye ar 1999/2000 Actual 13 point 1 percent; Fiscal Year 2000/2001 Adopted Budget 7 p oint 4 percent; Fiscal Year 2000/2001 Revised Budget 7 point 4 percent; Fiscal Y ear 2001/2002 Budget 2 point 1 percent. Average Fare per Boarding: Fiscal Year 1997/1998 Actual 51 cents; Fiscal Year 19 98/99 Actual 50 cents; Fiscal Year 1999/2000 Actual 56 cents; Fiscal Year 2000/2 001 Adopted Budget 57 cents; Fiscal Year 2000/2001 Revised Budget 58 cents; Fisc al Year 2001/2002 Budget 57 cents. Percent of Change: Fiscal Year 1998/99 Actual minus 3 point 0 percent; Fiscal Ye ar 1999/2000 Actual 11 point 9 percent; Fiscal Year 2000/2001 Adopted Budget 1 p oint 7 percent; Fiscal Year 2000/2001 Revised Budget 3 point 5 percent; Fiscal Y ear 2001/2002 Budget minus 1 point 0 percent. Other Income The TEA-21 Federal guidelines allow V T A to claim grants (which are normally re stricted to capital projects) for preventive maintenance costs. V T A expects t o apply and receive 7,504,000 dollars from this source in Fiscal Year 2001/2002, which is 1percent less than the Fiscal Year 2000-01 Revised Budget. Our princip al motivation in programming capital grants for preventive maintenance is to acc elerate the cash flow, and hence improve financial position. State Transit Assistance (S T A) is estimated at 7,681,000 dollars, a significan t increase of 3,418,000 dollars or 80 point 2 percent from the current year. Thi s was the result of a state budget surplus created by the booming economy. Such an increase will likely not be repeated next year as the economy is contracting.

Advertising revenue is projected to increase slightly to a total of 4,608,000 do llars. It is comprised of two components: advertising on buses and light rail ve hicles; and bus shelter advertising. Advertising on buses and light rail vehicle s will increase by 342,000 dollars to a total of 4,095,000 dollars; while bus sh elter advertising revenues are projected at 513,000 dollars, a decrease of 7 poi nt 7 percent from current year reflecting the sharp decline in advertising spend ing. We project interest income to reach 10,850,000 dollars, based on a projected ave rage invested funds totaling 217,000,000 dollars for investment at 5 percent. It represents only a 1 point 4 percent increase due to lower prevailing interest r ates. EXPENSES Inflation Rate The Consumer Price Index (C P I) is the gauge of inflation at the retail or cons umer level. C P I reached an annual rate of 4 point 46 percent for the San Franc isco Oakland San Jose region in 2000. It was the second consecutive year that th e Bay Area had a rate above 4 percent. A line chart shows the consumer price index yearly changes for the San Francisco , Oakland and San Jose region and the U S Average: 1988 San Francisco, Oakland, San Jose, 4 point 4 percent, U S Average 4 point 1 percent 1989 San Francisco, Oakland, San Jose, 4 point 9 percent, U S Average 4 point 8 percent 1990 San Francisco, Oakland, San Jose, 4 point 5 percent, U S Average 5 point 4 percent 1991 San Francisco, Oakland, San Jose, 4 point 4 percent, U S Average 4 point 2 percent 1992 San Francisco, Oakland, San Jose, 3 point 3 percent, U S Average 3 point 0 percent 1993 San Francisco, Oakland, San Jose, 2 point 7 percent, U S Average 3 point 0 percent 1994 San Francisco, Oakland, San Jose, 1 point 6 percent, U S Average 2 point 6 percent 1995 San Francisco, Oakland, San Jose, 2 point 0 percent, U S Average 2 point 8 percent 1996 San Francisco, Oakland, San Jose, 2 point 3 percent, U S Average 3 point 0 percent 1997 San Francisco, Oakland, San Jose, 3 point 4 percent, U S Average 2 point 3 percent 1998 San Francisco, Oakland, San Jose, 3 point 2 percent, U S Average 1 point 6 percent 1999 San Francisco, Oakland, San Jose, 4 point 2 percent, U S Average 2 point 2 percent 2000 San Francisco, Oakland, San Jose, 4 point 46 percent, U S Average 3 point 3 6 percent Source: Bureau of Labor Statistics When preparing the Fiscal Year 2001/2002 budget assumptions, oil prices and the economy were the major unknown. Since then, oil prices have dropped and stabiliz ed as we had hoped; however, the surge of electricity and gas prices has overtak en oil as the one of the driving forces of inflation in California. Although the economy of the County has deteriorated, inflation has not subsided noticeably. We still believe that a slowing economy will eventually drive down inflation. We continue to believe that 4.0percent is still the appropriate inflation factor t o be used for Fiscal Year 2001/2002. We use the inflation factor to escalate mos t non-labor budget items in the prior year adopted budget to generate the new ba

seline budget numbers. All major expense items will be discussed in a programmatic fashion. However, we will begin the discussion with the general changes in wages and benefits becaus e it represents 73 point 9 percent of V T A's operating expense. Wages and Benefits We practice a very conservative approach in budgeting for labor cost. Although w e are currently experiencing a 12 point 4 percent vacancy rate, we have projecte d only a 3 point 5 percent wages, salaries and benefits savings. If appropriate, we will reduce the wages and benefits budget by the realized vacancy savings in the mid year revised budget. Labor cost has increased by 14 point 1 percent, or 26,448,000 dollars, from 188, 014,000 dollars in the Fiscal Year 2000/2001 Revised Budget to 214,462,000 dolla rs in the Fiscal Year 2001/2002 Budget. A net of 16 positions were added to the Fiscal Year 2000/2001 Revised Budget sin ce its approval. Fifty-three new positions are requested in the Fiscal Year 2001 /2002 budget (descriptions follow). As a result, V T A will have a total of 2,86 3 budgeted positions. The booming economy in this county has created a serious labor shortage for V T A. We are experiencing an average of 12 percent vacancy rate across all division s. The shortage situation had become so severe that we had to modify our Fiscal Year 2000/2001 Service Expansion Plan. In order to retain and attract enough qua lified and experienced workers, we believe we need to align our pay rates more c losely to the market rates. We took the initiative early this year to collectiv e bargaining with the A T U a year before the contract would have expired. Also we are realigning approximately one-third of the classifications in the Service Employees International Union (S E I U) and County Employees Management Associat ion (C E M A) every year. All these actions resulted in an increase of 11 point 6 million dollars in labor cost (8 point 3 million dollars in salaries and 3.3 m illion dollars in benefits) in Fiscal Year 2001/2002. New proposed positions for Fiscal Year 2001/2002 will cost 2 point 9 million dol lars. V T A's contribution to the A T U pension fund has been increased by 2 poi nt 8 million dollars. A 9 point 1 million dollars increase is due to adjustments to salary savings and partially funded positions in the Fiscal Year 2000/2001 R evised Budget. Service Expansion In recent years, V T A has enhanced service by expanding service hours, increasi ng service frequency, improving connections and strengthening commuter service. As shown on the following chart, the proposed Fiscal Year 2001/2002 Transit Serv ice Plan will continue to provide more service hours and miles to the V T A tran sit users. The Plan will increase overall service miles 2 point 5 percent from 2 4,945,000 to 25,567,000 and service hours 2 point 8 percent from 1,778,000 to 1, 828,000. To support this service increase, V T A will need 25 new bus operators and additional resources including diesel fuel, traction power and tires. The to tal additional costs of this service expansion in Fiscal Year 2001/2002 will be approximately 1,064,000 dollars. V T A has an ongoing program of projects to expand and rehabilitate its bus and light rail facilities to accommodate the expanded service. The completion of fac ilities expansion at the North and Guadalupe Divisions will necessitate the addi tion of one Transit Maintenance Supervisor and five Transit Facilities Workers t o properly maintain these expanded facilities. The estimated annual cost of thes e six positions is 258,000 dollars.

SERVICE MILES IN THOUSANDS: Bus Miles: Fiscal Year 1997/1998 Actual 21,185; Fiscal Year 1998/99 Actual 22,40 0; Fiscal Year 1999/2000 Actual 22,924; Fiscal Year 2000/2001 Adopted Budget 23, 596; Fiscal Year 2000/2001 Revised Budget 22,944; Fiscal Year 2001/2002 Budget 2 3,479. Percent of Change: Fiscal Year 1998/99 Actual 5 point 7 percent; Fiscal Year 199 9/2000 Actual 2 point 3 percent; Fiscal Year 2000/2001 Adopted Budget 2 point 9 percent; Fiscal Year 2000/2001 Revised Budget 0 point 1 percent; Fiscal Year 200 1/2002 Budget 2 point 3 percent. Light Rail Train Miles: Fiscal Year 1997/1998 Actual 1,368; Fiscal Year 1998/99 Actual 1,360; Fiscal Year 1999/2000 Actual 1,651; Fiscal Year 2000/2001 Adopted Budget 2,007; Fiscal Year 2000/2001 Revised Budget 2,007; Fiscal Year 2001/2002 Budget 2,088. Percent of Change: Fiscal Year 1998/99 Actual minus 0 point 6 percent; Fiscal Ye ar 1999/2000 Actual 21 point 4 percent; Fiscal Year 2000/2001 Adopted Budget 21 point 6 percent; Fiscal Year 2000/2001 Revised Budget 21 point 6 percent; Fiscal Year 2001/2002 Budget 4 point 0 percent. Total Service Miles: Fiscal Year 1997/1998 Actual 22,553; Fiscal Year 1998/99 Ac tual 23,760; Fiscal Year 1999/2000 Actual 24,575; Fiscal Year 2000/2001 Adopted Budget 25,603; Fiscal Year 2000/2001 Revised Budget 24,951; Fiscal Year 2001/200 2 Budget 25,567. Percent of Change: Fiscal Year 1998/99 Actual 5 point 4 percent; Fiscal Year 199 9/2000 Actual 3 point 4 percent; Fiscal Year 2000/2001 Adopted Budget 4 point 2 percent; Fiscal Year 2000/2001 Revised Budget 1 point 5 percent; Fiscal Year 200 1/2002 Budget 2 point 5 percent. Light Rail Car Miles: Fiscal Year 1997/1998 Actual 2,126; Fiscal Year 1998/99 Ac tual 2,249; Fiscal Year 1999/2000 Actual 2,791; Fiscal Year 2000/2001 Adopted Bu dget 3,151; Fiscal Year 2000/2001 Revised Budget 3,151; Fiscal Year 2001/2002 Bu dget 3,278. Percent of Change: Fiscal Year 1998/99 Actual 5 point 8 percent; Fiscal Year 199 9/2000 Actual 24 point 1 percent; Fiscal Year 2000/2001 Adopted Budget 12 point 9 percent; Fiscal Year 2000/2001 Revised Budget 12 point 9 percent; Fiscal Year 2001/2002 Budget 4 point 0 percent. SERVICE HOURS IN THOUSANDS: Bus Hours: Fiscal Year 1997/1998 Actual 1,465; Fiscal Year 1998/99 Actual 1,566; Fiscal Year 1999/2000 Actual 1,624; Fiscal Year 2000/2001 Adopted Budget 1,673; Fiscal Year 2000/2001 Revised Budget 1,642; Fiscal Year 2001/2002 Budget 1,687. Percent of Change: Fiscal Year 1998/99 Actual 6 point 9 percent; Fiscal Year 199 9/2000 Actual 3 point 7 percent; Fiscal Year 2000/2001 Adopted Budget 3 point 0 percent; Fiscal Year 2000/2001 Revised Budget 1 point 1 percent; Fiscal Year 200 1/2002 Budget 2 point 7 percent. Light Rail Train Hours: Fiscal Year 1997/1998 Actual 87; Fiscal Year 1998/99 Act ual 89; Fiscal Year 1999/2000 Actual 113; Fiscal Year 2000/2001 Adopted Budget 1 36; Fiscal Year 2000/2001 Revised Budget 136; Fiscal Year 2001/2002 Budget 141. Percent of Change: Fiscal Year 1998/99 Actual 2 point 3 percent; Fiscal Year 199 9/2000 Actual 27 point 0 percent; Fiscal Year 2000/2001 Adopted Budget 20 point 4 percent; Fiscal Year 2000/2001 Revised Budget 20 point 4 percent; Fiscal Year 2001/2002 Budget 3 point 7 percent.

Total Service Hours: Fiscal Year 1997/1998 Actual 1,552; Fiscal Year 1998/99 Act ual 1,655; Fiscal Year 1999/2000 Actual 1,737; Fiscal Year 2000/2001 Adopted Bud get 1,809; Fiscal Year 2000/2001 Revised Budget 1,778; Fiscal Year 2001/2002 Bud get 1,828. Percent of Change: Fiscal Year 1998/99 Actual 6 point 6 percent; Fiscal Year 199 9/2000 Actual 5 point 0 percent; Fiscal Year 2000/2001 Adopted Budget 4 point 1 percent; Fiscal Year 2000/2001 Revised Budget 2 point 4 percent; Fiscal Year 200 1/2002 Budget 2 point 8 percent. Light Rail Car Hours: Fiscal Year 1997/1998 Actual 135; Fiscal Year 1998/99 Actu al 147; Fiscal Year 1999/2000 Actual 189; Fiscal Year 2000/2001 Adopted Budget 2 13; Fiscal Year 2000/2001 Revised Budget 213; Fiscal Year 2001/2002 Budget 221. Percent of Change: Fiscal Year 1998/99 Actual 8 point 9 percent; Fiscal Year 199 9/2000 Actual 28 point 6 percent; Fiscal Year 2000/2001 Adopted Budget 12 point 7 percent; Fiscal Year 2000/2001 Revised Budget 12 point 7 percent; Fiscal Year 2001/2002 Budget 3 point 8 percent. Capital Program Support V T A's ambitious capital program requires more support in several crucial areas . Rail Design and Construction Division requests 16 new positions in areas of en gineering, construction inspection, survey, mapping, utility coordination and co nstruction materials management. Anticipating growth in capital programs activities, the General Counsel's office needs an additional Senior Assistant Counsel position to provide legal support to these activities. Lastly, Fiscal Resources Division will need two additional staff to help in cons truction contract administration. The annual cost of these 19 positions is projected at 1,618,000 dollars. Information Systems, Communications, and Technologies This budget reflects V T A's growing integration of information technology into the management of our operations and capital programs. The need to support the e xpanding usage of our enterprise resource planning (E R P) system, the Bid, Disp atch and Timekeeping (B D T) system, and other information systems has placed a great demand upon the Information Service Group (I S G). However the strong tech nology sector of the local economy has exacerbated this situation by creating a labor shortage in the information technology field. This has resulted in high tu rnover and understaffing for I S G. Consequently, I S G has had to scale back in itiatives and rely on outside consultants to supplement our staff and provide te chnical assistance for our most critical applications. I S G's FY 2000-01 Revised Budget was augmented by 7 point 8 million dollars for system consultants and professional services. 1 point 3 million dollars for sof tware and hardware was also added. In Fiscal Year 2001/2002, we will continue t o need consultant support; however, the level of support has been reduced signif icantly as we are now two years into the E R P system implementation. The syste ms seem stabilized and V T A's staff has become more experienced and self-relian t. I S G requests only 4 point 0 million dollars for such services in Fiscal Yea r 2001/2002, a reduction of 3 point 8 million dollars from the Fiscal Year 2000/ 2001 Revised Budget. Administrative Support Fiscal Resources will be increasing activities in several facets of its operatio n. This budget includes 598,000 dollars for additional professional services for financial advisory, annual financial audit, and development of workstation proc

edures, along with the addition of one Financial Analyst to support the Accounti ng Department. One Office Specialist 2 position will be added to support the Operations Control Center at the Guadalupe Division at an annual cost of 53,000 dollars. Training The demands for staff development, training and improved skill levels remain hig h. To meet these challenges, this budget augments 323,000 dollars for staff tra ining and development programs in the Human Resources Division. One Rail Mainten ance Instructor position will be added in Maintenance Training to provide techni cal expertise in hands-on training in Way, Power and Signal. Other Operating Expenses To conform to the actual accounting practice of recording and settling work orde rs, 1 point 5 million dollars was reduced from the parts budget. In Fiscal Year 2001/2002, security and protective services provided by our contr actor will increase 1,111,000 dollars due to an increase in billing rates and to provide increased security at selected light rail stations and park and ride lo ts along the Guadalupe line. The Sales Program Department requests an increase of 154,000 dollars for enhance d advertising efforts to adequately promote the full range of V T A's programs a nd services. Accessible Services will implement two programs in Fiscal Year 2001/2002: the Jo b Access program (500,000 dollars) and the Low-Income Flexible Transportation pr ogram (750,000 dollars). Both of them are 100 percent grant funded and will have zero net financial impact on the Fiscal Year 2001/2002 budget. The Maintenance Division will be hiring a consultant to perform a wheel/rail int erface study that will determine the optimum rail wheel profile, maintenance cyc les and tasks. The budget for this study is 300,000 dollars. Insurance expense will be increased by 1 point 7 million dollars as a result of an increase in both of the self insurance program and property casualty premium, and a three year program of underfunding due to excess reserves. Contingency In order to maintain a more efficient budgeting process, an individual division does not budget for contingency within its own budget. An organization-wide con tingency fund is established within the Office of the General Manager to fund ur gent and unexpected programs or projects. During development of the Fiscal Year 1997/1998 Budget, the Administration and Finance Committee recommended that V T A's budget policy should include the establishment of a contingency fund (that is, the General Manager's unallocated fund) at 3 percent of the operating budget . Recognizing that V T A should attain that level incrementally, we have been in creasing the percentage of contingency fund by point 5 percent each year startin g at 1 percent in Fiscal Year 1997/1998. Fiscal Year 2001/2002 will be the first year we reach the 3 percent goal. Following the policy guidance of the Administ ration and Finance Committee, the contingency reserve is set at 10,423,000 dolla rs. Reimbursements This item is used primarily by three divisions for two completely different purp oses. The Maintenance Division uses it to record internal repair cost transfers; the Planning and Development Division and the Rail Design and Construction Divi sion use it to accumulate capitalized labor costs for project cost monitoring an d grant billing purposes. In Fiscal Year 2001/2002, it shows a decrease of 3,613

,000 dollars, which is primarily due to our changing the forecasting method to c onform to the actual accounting practice. As a result of implementing the E R P system, accounting for reimbursements has changed significantly, especially in the area of capturing costs for rebuilt par ts and maintenance work. In the Maintenance Division, both parts and labor costs were included in reimbursements using the old budgeting method. However, only l abor cost is charged to the reimbursement account under the new system. Lacking a clear idea of how the process works in the new system, we have been continuing the old method to forecast the reimbursement amounts in order to expedite the b udgeting process. After almost two years, the E R P system has gathered enough d ata to show a pattern that we can use to develop the reimbursement budget accura tely. In Fiscal Year 2001/2002, we reduced the Maintenance Division's reimbursem ents to 3,858,000 dollars, a 48 point 2 percent reduction from the Revised Budge t. In Fiscal Year 2001/2002, the Planning and Development Division and the Rail Des ign and Construction Division have combined reimbursements of 12,615,000 dollars , a decrease of 634,000 dollars from the Fiscal Year 2000/2001 Revised Budget. T he decrease is partially due to the fact that project scopes of some of our new projects are still at the early planning stage; therefore, project managers cann ot project the demands for V T A's internal labor accurately. However, as the pr oject requirements for the major facilities improvement program, the 1996 Measur e B Transportation Improvement Program and the 2000 Measure A projects begin to finalize, more reimbursements for V T A labor are expected. For labor costs incurred for the 1996 Measure B Transportation Improvement Progr am, we will not recover 100 percent of our fully allocated expenditures. As stat ed in the Master Agreement with the County of Santa Clara, we agreed to seek onl y reimbursement for the direct costs but not indirect costs. As a result, we bud geted 3,606,000 dollars in the Non-Departmental cost center to reflect the indir ect costs V T A will absorb. A D A Paratransit Paratransit ridership continues to increase and has almost doubled over the past four years. In Fiscal Year 2001/2002, ridership is anticipated to increase 12 p oint 1 percent over the Fiscal Year 2000/2001 Revised Budget. It is estimated th at V T A will provide 1,018,000 paratransit trips at a net cost of 25,153,000 do llars. This budget amount ensures that adequate operating funds are set aside to address the demand for A D A paratransit services and to examine alternative se rvice and delivery concepts that meet both the spirit and the letter of the A D A. It also includes 250,000 dollars for a short-range and long-range accessibili ty service study and professional service for capital program designs to meet ac cessibility requirements of the Americans with Disabilities Act (A D A). A D A Trips in thousands: Fiscal Year 1997/1998 Actual 529; Fiscal Year 1998/99 Actual 646; Fiscal Year 1999/2000 Actual 779; Fiscal Year 2000/2001 Adopted Budg et 908; Fiscal Year 2000/2001 Revised Budget 908; Fiscal Year 2001/2002 Budget 1 ,018; Percent of Change from FY 2000/2001 Revised Budget 12 point 1 percent. Percent of Change: Fiscal Year 1998/99 Actual 22 point 1 percent; Fiscal Year 19 99/2000 Actual 20 point 6 percent; Fiscal Year 2000/2001 Adopted Budget 16 point 6 percent; Fiscal Year 2000/2001 Revised Budget 0 point 0 percent; Fiscal Year 2001/2002 Budget 12 point 1 percent. A D A Net Operating Expense in thousand dollars: Fiscal Year 1997/1998 Actual 11 ,162; Fiscal Year 1998/99 Actual 14,510; Fiscal Year 1999/2000 Actual 16,443; Fi scal Year 2000/2001 Adopted Budget 20,403; Fiscal Year 2000/2001 Revised Budget 20,403; Fiscal Year 2001/2002 Budget 25,153; Percent of Change from FY 2000/2001 Revised Budget 23 point 3 percent.

Percent of Change: Fiscal Year 1998/99 Actual 30 point 0 percent; Fiscal Year 19 99/2000 Actual 13 point 3 percent; Fiscal Year 2000/2001 Adopted Budget 24 point 1 percent; Fiscal Year 2000/2001 Revised Budget 0 point 0 percent; Fiscal Year 2001/2002 Budget 23 point 3 percent. Net Cost per Trip: Fiscal Year 1997/1998 Actual 21 dollars and 10 cents; Fiscal Year 1998/99 Actual 22 dollars and 46 cents; Fiscal Year 1999/2000 Actual 21 dol lars and 11 cents; Fiscal Year 2000/2001 Adopted Budget 22 dollars and 47 cents; Fiscal Year 2000/2001 Revised Budget 22 dollars 47 cents; Fiscal Year 2001/2002 Budget 24 dollars and 71 cents; Percent of Change from FY 2000/2001 Revised Bud get 10 point 0 percent. Percent of Change: Fiscal Year 1998/99 Actual 6 point 4 percent; Fiscal Year 199 9/2000 Actual minus 6 point 0 percent; Fiscal Year 2000/2001 Adopted Budget 6 po int 4 percent; Fiscal Year 2000/2001 Revised Budget 0 point 0 percent; Fiscal Ye ar 2001/2002 Budget 10 point 0 percent. Caltrain VTA's current contribution for Caltrain is 42% of the net operating expenses, ba sed on a formula included in the Joint Powers Agreement. VTA is estimating that its share of the operating expenses will be $14.3 million, a 3.6% increase over the FY 2000-01 Revised Budget. This increase reflects operating a full year of 80 weekday trains, fuel and energy increases, improved Pacific Bell Park servic e and VTA funding for a new summer demonstration of weekend service to Gilroy. Altamont Commuter Express Rail VTA's FY 2001-02 budget for ACE is planned to be $5.1 million, a 37.8% increase over the last fiscal year. This reflects a full year of the third round trip se rvice, the addition of a fourth roundtrip train in November 2001, additional res ources to support the highly successful connecting shuttles and VTA's share of t he ACE capital program. Member agency contributions are determined by a formula based on the total rider boardings in each county. VTA's current contribution i s 43% of the net expenses. VTA's budget for ACE also includes the full costs of the ACE shuttles operated i n Santa Clara County. VTA staff manages this program and contracts with a priva te carrier to operate the service. These shuttle expenses are reimbursed by ACE . Finally, VTA budgets and pays for the ACE use of the San Jose Diridon and San ta Clara Stations and for ACE ticketing services at San Jose Diridon Station. FISCAL YEAR 2000/2001 ACCOMPLISHMENTS PLANNING AND ADMINISTRATION: The 2000 Measure A, which was placed on the ballot by the V T A Board of Directo rs to support the 20 year Valley Transportation Plan 2020, was overwhelmingly ap proved by more than 70percent of the voters in November 2000. The approval of M easure A is both a mandate and a vote of confidence in V T A. Before the Novembe r election, only two of 36 transportation measures statewide had ever cleared th e two-thirds majority hurdle needed to pass. Successfully negotiated the new four year labor contract with ATU. Held the first "V T A Great Job Fair" to increase recruitment outreach. Expanded the employer-based Eco Pass Program from 95 to 135 participating employ ers, representing more than 104,000 employees. The number of employers particip ating in the Eco Pass Program has increased by approximately 42 percent during t he fiscal year.

Secured State and Federal Capital Grants in excess of 100 million dollars. Completed the Downtown/East Valley Major Investment Study and initiated Conceptu al Engineering and E I R/E I S. CAPITAL IMPROVEMENTS: Tasman West Light Rail Project was the recipient of transportation "Project of t he Year" award from American Public Works Association and also received a "Trann y Award" for project of the year in California. Began construction of major elements of V T A's Facilities Improvement Program i ncluding North Division Reconstruction and Guadalupe Light Rail Facility Expansi on. Completed construction of the Gilroy Caltrain Transit Center Project, the San Ma rtin Park and Ride Lot Interim Expansion Project, the West Valley College Transi t Center Project, Monterey Road Bus Stop Improvements, plus an additional 42 fac ilities modifications and 41 bus stop improvements. Completed and opened Ohlone Commons, V T A's second transit-oriented joint devel opment project. Began design and staging plan for Guadalupe rail platforms retrofit. Entered into a Cooperative Agreement with the City of San Jose to be their agent in delivering the Route 880/Coleman Avenue Interchange project, awarded a contr act for project development services and moved forward with preliminary engineer ing. OPERATIONS: Performed preliminary and final design reviews for the Advanced Communication Sy stem (A C S), performed site preparation for the two new repeater site locations for the ACS and activated a new radio channel at the Palo Alto site. Performed conceptual and final design reviews for the new low-floor light rail v ehicles, first article inspections on all major subsystems, and received first v ehicle for testing. Purchased 15 additional electric vehicles bringing the total to 20 electric vehi cles and installed additional 13 electric vehicle-charging stations for a total of 21 charging stations. One charging station is available for public use. Entered into a contract for 40 articulated buses. Implemented the Yield to Bus Demonstration Project. Opened the Gilroy Transit Center and expanded parking at the Caltrain Station an d opened the Transit Center at West Valley College. Increased Caltrain service levels from 68 to 78 weekday trains plus additional s ervice on weekends and for Giants games at PacBell Park. Connecting shuttles in Gilroy and Morgan Hill were also implemented. In addition, 100 parking spaces w ere added at San Martin Caltrain Park and Ride to meet growing demand. Started third train service for A C E including supporting shuttles. Expanded DASH shuttle to five-minute headways during morning commute hours. Add ed Edenvale light rail shuttle and BayTech shuttle, and modified McCarthy shuttl e to support Tasman light rail extension to the I 880/Milpitas Station.

Implemented first cycle of F T A grant-funded Job Access/Reverse Commute Project and successfully obtained funding for second cycle. Successfully obtained grant funding for three years through Metropolitan Transpo rtation Commission for the Low Income Flexible Transit Project. Maintained compliance with A D A Paratransit requirements, with year-to-date rid ership increasing 14 point 5 percent over prior year. Implemented the first two quarters of the Fiscal Year 2000/2001 Annual Transit S ervice Plan. Developed a plan to temporarily reduce service levels by 3.0percen t in an effort to stabilize system performance resulting from shortages of opera tors. Continue with ongoing Service Monitoring and Evaluation programs to ensure the services V T A provides are being effectively utilized by the public. Implemented the Route Stabilization Team staffed with Sheriff Deputies to provid e increased security. This plain clothes unit operates on V T A bus routes and on light rail to ensure a safe environment for operators and passengers. Improved security at five light rail stations and park and ride lots on the Guad alupe Line in response to an increase in security incidents. Upgraded C C T V monitoring, card access system and alarm system at various work locations. CONGESTION MANAGEMENT PROGRAM: Completed the Valley Transportation Plan 2020 (V T P 2020), a 20 year countywide , multimodal transportation blueprint for Santa Clara County that includes a 36 year expenditure plan. Completed the Santa Clara Countywide Bicycle Plan, which includes a 10 year 32 m illion dollars expenditure program for constructing key bicycle projects in the County. Allocated 2 point 4 million dollars in Transportation Fund for Clean Air (T F C A) dollars for various projects designed to reduce congestion and improve air qu ality in Santa Clara County. Developed the 1 point 6 million dollars 2000 Transportation Development Act Arti cle 3 Bicycle and Pedestrian Expenditure Plan for Santa Clara County. Programmed more than 46 million dollars for Santa Clara County projects through the 2000 State Transportation Improvement Program (S T I P). Dispensed over 20 million dollars in Pavement Management funds to Member Agencie s, completing 21 roadway pavement improvement projects. Began development of the V T P 2020 Implementation Plan, which will lay out the process for delivering projects in the countywide transportation plan over the n ext ten years. Began development of the Best Practices Program for Integrating Transportation a nd Land Use. Began a conceptual study of alternatives for the I 680/I 880 cross connector in Milpitas and Fremont. Developed and implemented a Programmed Projects Quarterly Monitoring Report to a ssist in the monitoring of timely delivery of projects funded by federal, state, regional or local funds programmed by the Board of Directors.

1996 MEASURE B TRANSPORTATION IMPROVEMENT PROGRAM Transit Program: May 2001 opening of the Tasman East Light Rail Line from Baypointe Station to th e I 880/Milpitas station. This segment was completed on schedule and under the 1996 Measure B Transportation Improvement Program budget. Began construction of the Tasman East Light Rail Project from the I 880/Milpitas station on Tasman Drive, along Great Mall Parkway to the Hostetter Station on C apitol Avenue. Vasona Light Rail Project: completed final design; completed right of way engine ering and Resolution of Necessity Hearings; began tunnel construction at Diridon train station; and advertised railroad segment civil contract. Capitol Light Rail Project: completed the environmental document and cleared all legal challenges, and began construction from the Hostetter Station to Alum Roc k Station and Park and Ride. Highway Program: Completed construction on the Route 17/San Tomas Expressway Modification project . Completed the design and approval for the Routes 85/87, Route 85/101 (North), I 880 widening, Route 237/880, Route 85/101 (South) and U S 101 widening projects. Began construction on the Route 880 Widening Project from Montague Expressway to North First Street. Began the preliminary engineering and environmental work for the Route 85/101 (N orth) Interchange, Route 87 (North) H O V Lanes, Route 87 (South) HOV Lanes, Rou te 17 (North), Route 17 (South), and Route 152 Improvement projects. FISCSAL YEAR 2001/2002 GOALS PLANNING AND ADMINISTRATION: Focus on retention and recruitment of qualified employees. Continue to expand the Residential Eco Pass Program by increasing the number of neighborhood groups, homeowners' associations and property managers participatin g in the program. Continue to expand Community Outreach efforts for all V T A capital projects and corridor studies from initial planning through project delivery. Complete the Fiscal Year 2002/2011 Short Range Transit Plan. Complete the Silicon Valley Rapid Transit Corridor Major Investment Study and in itiate an E I R/E I S for the Preferred Investment Strategy. Complete Downtown/East Valley Conceptual Design. Complete Conceptual Design of Caltrain to Gilroy Track Improvements. CAPITAL IMPROVEMENTS: Complete construction of projects in the Facilities Improvement Program, includi ng North Division Reconstruction and Guadalupe Light Rail Vehicle Facility Shop Expansion. Begin construction of the Cerone O and R Division Improvements project; Alternat

ive Fuel Bus Facility Demonstration Project at Cerone; and, the first phases of the Cerone Complex Expansion Project. Retrofit six key Guadalupe stations with A D A compliant Ticket Vending Machines . Completion of Guadalupe Corridor Retrofit with fiber optics, communications, and sectionalization of overhead power. Select General Design Consultant and complete final design for the Caltrain Serv ice Expansion project to Gilroy. Complete the next phase of project development work for a commuter rail connecti on between Santa Clara County and the BART system in Alameda County. OPERATIONS: Improve percent of bus service provided to 99 percent. Complete full installation and acceptance of the Advanced Communications System (A C S) project and perform various acceptance tests including extensive radio c overage tests throughout the V T A service area. Manage the contract for the construction and commissioning of 40 articulated low -floor buses, and accept and put into service 136 new low-floor buses. Complete the installation of video surveillance equipment in 94 buses and low-fl oor light rail vehicles. Develop contract documents for the procurement of a demonstration fleet of Zero Emission Buses and provide engineering support in the development of special fue ling systems and other facilities needed to support this fleet. Also develop an d implement programs for bus engine overhaul and upgrade to ensure compliance wi th emission regulations. Conduct the second class of the Service Mechanic Training Program and continue t he Orientation Training Program for all new Service Mechanics. Implement the ne w Light Rail Electro Mechanic Training Program Purchase and install new engines on the 9200 series buses to reduce particulate matter emissions. Start fourth round trip service on A C E with supporting shuttles. Develop Short and Long-Range Accessibility Plan as part of V T P 2020 Update. Expand Eastridge Transit Center to support ongoing bus service expansion and ope n improved Transit Center and expanded parking at Lawrence Caltrain Station. Implement next phase of Transit Shelter Advertising Program by adding 100 new sh elters. Develop a plan to utilize Automated Passenger Counters (A P C's) to record passe nger activity at stops and monitor vehicle running times. Implement Fiscal Year 2001/2002 Transit Service Plan. The assumption is that sy stem expansion will be resumed once staffing levels are stabilized. Implement a remote-viewing program with C C T V cameras at selected transit cent ers and multimodal transfer centers. Continue to assign the Route Stabilization Team (staffed with plain-clothes Sheriff Deputies) to patrol areas that require

increased security for operators and passengers. CONGESTION MANAGEMENT PROGRAM: Complete the V T P 2020 Implementation Plan, laying out the process for deliveri ng projects in the countywide transportation plan over the next ten years. Complete the Best Practices for Integrating Transportation and Land Use guidelin es manual and provide planning grants for design of Best Practices projects. Complete the 2001 Congestion Management Program. Maximize funding for all countywide transportation programs and projects in the Capital Improvement Program (C I P). Develop programming processes for highways, soundwalls, local streets, county ro ads and expressways. Move forward with gateway studies for the South County and the I 680/I 880 cross connector. Continue to maintain and improve the countywide transportation system through th e better integration of land use and transportation planning. 1996 MEASURE B TRANSPORTATION IMPROVEMENT PROGRAM: Transit Program: Vasona Light Rail Project: advertise and award downtown civil, station and syste ms contracts. Begin construction on Guadalupe platform modifications to accommodate low floor L R Vs. Continue construction of and award systems contracts for the Tasman East and Cap itol Light Rail Projects as scheduled and budgeted. Highway Program: Award final design contracts for the Route 87 South and Route 85 Noise Mitigatio n highway projects included in the 1996 Measure B Transportation Improvement Pro gram. Continue progress towards completion of the environmental documents for all rema ining highway projects included in the Program. Begin construction on the following highway projects: (a) improvements to the Ro utes 85/87 Interchange in south San Jose; (b) widening of U.S. 101 in south San Jose and Morgan Hill; (c) improvements to the Route 85/101 (South) Interchange i n south San Jose; (d) an early utility relocation for the Route 237/880 Intercha nge project in Milpitas; (e) three 'early delivery" projects on Route 17 in Camp bell. Begin construction on the combined environmental mitigation site for the 1996 M B T I P on Coyote Creek in south San Jose. Complete the design and environmental approval for the following projects: (a) R oute 85/U.S. 101 (North) Interchange project in Mountain View; (b) Route 152 Imp rovements between U.S. 101 and Gilroy Foods in Gilroy; (c) Route 87 (North) HOV Lanes project in San Jose. OFFICE OF THE GENERAL MANAGER RESPONSIBILITIES

The General Manager's Office is responsible for the management of the Santa Clar a Valley Transportation Authority (V T A) according to the policies adopted by t he Board of Directors. General duties include the development of program and po licy alternatives for consideration by the Board and management of the authority 's staff activities. Specific functions within the General Manager's Office inc lude support of the Board through the Board Secretary, policy development, strat egic planning, and intergovernmental and business relations. MAJOR PROGRAMS The Office of the Board Secretary is responsible for all Board-related activitie s. These include the preparation and publication of agendas, notices, minutes o f meetings, hearings, and other matters within the jurisdiction of the Board. Government Affairs is primarily responsible for developing and coordinating V T A's legislative and intergovernmental relations programs. Specifically, it anal yzes the impact of state and federal legislative issues, and develops and coordi nates V T A's strategy for responding to these issues. It manages V T A's legis lative advocacy efforts in Washington, D C and in Sacramento. Government Affair s also coordinates V T A's outreach efforts to the local community, the cities, and respective state and federal legislative delegations. Policy and Programs has responsibility for strategic planning within the organiz ation. It also serves as V T A's principal liaison with Joint Powers Boards (Ca ltrain, A C E, and Capitol Corridor) and M T C. Policy and Programs supports V T A's liaison activities with business organizations and other community groups. Various special projects and programs (both internal and external) are also co ordinated out of the General Manager's Office. A description of the General Manager's Office Organizational Chart: Peter M. Cipolla, General Manager Administration, 3 position Government Affairs Office, Kurt Evans, Manager Board Secretary's Office, Sandra Weymouth, Board Secretary, 15 positions Policy and Programming Office, Frank Sharpless, Karen Cacy and Joanne Benjamin, Managers, 4 positions 24 full time positions. OFFICE OF GENERAL MANAGER BUDGET IN THOUSAND DOLLARS: Wages and Salaries: Fiscal Year 1999/2000 Actual 932; Fiscal Year 2000/2001 Adop ted Budget 1,346; Fiscal Year 2000/2001 Revised Budget 1,346; Fiscal Year 2001/2 002 Budget 1,567; Percent of change from Fiscal Year 2001 Revised is 16 point 4 percent. Benefits: Fiscal Year 1999/2000 Actual 515; Fiscal Year 2000/2001 Adopted Budget 484; Fiscal Year 2000/2001 Revised Budget 484; Fiscal Year 2001/2002 Budget 599 ; Percent of change from Fiscal Year 2001 Revised is 23 point 8 percent. Materials and Supplies: Fiscal Year 1999/2000 Actual 1; Fiscal Year 2000/2001 Ad opted Budget 4; Fiscal Year 2000/2001 Revised Budget 4; Fiscal Year 2001/2002 Bu dget 4; Percent of change from Fiscal Year 2001 Revised is 0 point 0 percent. Professional and Special Services: Fiscal Year 1999/2000 Actual 252; Fiscal Year 2000/2001 Adopted Budget 352; Fiscal Year 2000/2001 Revised Budget 352; Fiscal Year 2001/2002 Budget 366; Percent of change from Fiscal Year 2001 Revised is 4 point 0 percent. Other Services: Fiscal Year 1999/2000 Actual 13; Fiscal Year 2000/2001 Adopted B udget 8; Fiscal Year 2000/2001 Revised Budget 8; Fiscal Year 2001/2002 Budget 8;

Percent of change from Fiscal Year 2001 Revised is 0 point 0 percent. Data Processing: Fiscal Year 1999/2000 Actual 1; Fiscal Year 2000/2001 Adopted B udget 0; Fiscal Year 2000/2001 Revised Budget 0; Fiscal Year 2001/2002 Budget 0; Percent of change from Fiscal Year 2001 Revised is not applicable. Office Expense: Fiscal Year 1999/2000 Actual 47; Fiscal Year 2000/2001 Adopted B udget 26; Fiscal Year 2000/2001 Revised Budget 26; Fiscal Year 2001/2002 Budget 27; Percent of change from Fiscal Year 2001 Revised is 3 point 8 percent. Employee Related Expense: Fiscal Year 1999/2000 Actual 130; Fiscal Year 2000/200 1 Adopted Budget 155; Fiscal Year 2000/2001 Revised Budget 155; Fiscal Year 2001 /2002 Budget 161; Percent of change from Fiscal Year 2001 Revised is 3 point 9 p ercent. Leases and Rents: Fiscal Year 1999/2000 Actual 12; Fiscal Year 2000/2001 Adopted Budget 16; Fiscal Year 2000/2001 Revised Budget 16; Fiscal Year 2001/2002 Budge t 17; Percent of change from Fiscal Year 2001 Revised is 6 point 3 percent. Contingency: Fiscal Year 1999/2000 Actual 0; Fiscal Year 2000/2001 Adopted Budge t 7,153; Fiscal Year 2000/2001 Revised Budget 4,000; Fiscal Year 2001/2002 Budge t 10,423; Percent of change from Fiscal Year 2001 Revised is 160 point 6 percent . Miscellaneous: Fiscal Year 1999/2000 Actual 111; Fiscal Year 2000/2001 Adopted B udget 131; Fiscal Year 2000/2001 Revised Budget 131; Fiscal Year 2001/2002 Budge t 136; Percent of change from Fiscal Year 2001 Revised is 3 point 8 percent. Other Expense: Fiscal Year 1999/2000 Actual 2; Fiscal Year 2000/2001 Adopted Bud get 31; Fiscal Year 2000/2001 Revised Budget 31; Fiscal Year 2001/2002 Budget 32 ; Percent of change from Fiscal Year 2001 Revised is 3 point 2 percent. Total Expense: Fiscal Year 1999/2000 Actual 2,016; Fiscal Year 2000/2001 Adopted Budget 9,706; Fiscal Year 2000/2001 Revised Budget 6,553; Fiscal Year 2001/2002 Budget 13,340; Percent of change from Fiscal Year 2001 Revised is 103 point 6 p ercent. Positions in whole number: Fiscal Year 1999/2000 Actual 16; Fiscal Year 2000/200 1 Adopted Budget 23; Fiscal Year 2000/2001 Revised Budget 23; Fiscal Year 2001/2 002 Budget 24; Percent of change from Fiscal Year 2001 Revised is 4 point 3 perc ent. MAJOR BUDGETARY CHANGES Contingency During development of the Fiscal Year 1997/1998 Budget, the Administration and F inance Committee recommended that V T A's budget policy should include the estab lishment of a contingency fund (that is , the General Manager's unallocated fund ) at 3 percent of the operating budget. Recognizing that V T A should attain tha t level incrementally, we have been increasing the percentage of contingency fun d by point 5 percent each year starting at 1 percent in Fiscal Year 1997/1998. F iscal Year 2001/2002 will be the first year we reach the 3 percent goal. Followi ng the policy guidance of the Administration and Finance Committee, the continge ncy reserve is set at 10,423,000 dollars, an increase of 3,270,000 dollars over the Fiscal Year 2000/2001 Adopted Budget. This fund is used to fund urgent and u nexpected programs or projects not specifically identified and budgeted. OFFICE OF THE GENERAL COUNSEL RESPONSIBILITIES The General Counsel's Office provides legal advice and counsel to all of the div

isions and departments, as well as to the General Manager and the Board of Direc tors, with respect to all facets of V T A's operations, including the Congestion Management Program. The office also retains and oversees outside counsel to pr ovide specialized legal services, and retains counsel for workers' compensation and public liability/property damage defense. MAJOR ACTIVITIES Assist divisions and departments to achieve their goals by providing legal suppo rt to handle labor/employment issues in a more efficient and timely manner. Provide counsel to address legal issues, which arise in conjunction construction projects. Continue review and analysis of existing and proposed administrative policies an d procedures to ensure clarity, compliance with current laws, and administrative efficiency. Handle in house, to the greatest extent possible, all litigation except bus and light rail accidents. Provide legal support to the V T A/A T U Pension Board and Deferred Compensation Committee. A description of the General Counsel's Office Organizational Charts: Suzanne Gifford, General Counsel Assistant General Counsel, Richard Katzman, Attorneys, 5positions Administrative support, 2 positions 9 full time positions. OFFICE OF THE GENERAL COUNSEL BUDGET IN THOUSAND DOLLARS: Wages and Salaries: Fiscal Year 1999/2000 Actual 634; Fiscal Year 2000/2001 Adop ted Budget 749; Fiscal Year 2000/2001 Revised Budget 749; Fiscal Year 2001/2002 Budget 874; Percent of change from Fiscal Year 2001 Revised is 16 point 7 percen t. Benefits: Fiscal Year 1999/2000 Actual 303; Fiscal Year 2000/2001 Adopted Budget 270; Fiscal Year 2000/2001 Revised Budget 270; Fiscal Year 2001/2002 Budget 334 ; Percent of change from Fiscal Year 2001 Revised is 23 point 7 percent. Professional and Special Services: Fiscal Year 1999/2000 Actual 277; Fiscal Year 2000/2001 Adopted Budget 330; Fiscal Year 2000/2001 Revised Budget 530; Fiscal Year 2001/2002 Budget 343; Percent of change from Fiscal Year 2001 Revised is mi nus 35 point 3 percent. Other Services: Fiscal Year 1999/2000 Actual 13; Fiscal Year 2000/2001 Adopted B udget 0; Fiscal Year 2000/2001 Revised Budget 0; Fiscal Year 2001/2002 Budget 0; Percent of change from Fiscal Year 2001 Revised is not applicable. Office Expense: Fiscal Year 1999/2000 Actual 7; Fiscal Year 2000/2001 Adopted Bu dget 8; Fiscal Year 2000/2001 Revised Budget 8; Fiscal Year 2001/2002 Budget 8; Percent of change from Fiscal Year 2001 Revised is 0 point 0 percent. Employee Related Expense: Fiscal Year 1999/2000 Actual 6; Fiscal Year 2000/2001 Adopted Budget 17; Fiscal Year 2000/2001 Revised Budget 17; Fiscal Year 2001/200 2 Budget 18; Percent of change from Fiscal Year 2001 Revised is 5 point 9 percen t. Miscellaneous: Fiscal Year 1999/2000 Actual 33; Fiscal Year 2000/2001 Adopted Bu

dget 22; Fiscal Year 2000/2001 Revised Budget 22; Fiscal Year 2001/2002 Budget 2 3; Percent of change from Fiscal Year 2001 Revised is 4 point 5 percent. Total Expense: Fiscal Year 1999/2000 Actual 1,273; Fiscal Year 2000/2001 Adopted Budget 1,396; Fiscal Year 2000/2001 Revised Budget 1,596; Fiscal Year 2001/2002 Budget 1,600; Percent of change from Fiscal Year 2001 Revised is 0 point 3 perc ent. Reimbursements: Fiscal Year 1999/2000 Actual minus 147; Fiscal Year 2000/2001 Ad opted Budget minus 242; Fiscal Year 2000/2001 Revised Budget minus 242; Fiscal Y ear 2001/2002 Budget minus 271; Percent of change from Fiscal Year 2001 Revised is 12 point 0 percent. Net Total: Fiscal Year 1999/2000 Actual 1,126; Fiscal Year 2000/2001 Adopted Bud get 1,154; Fiscal Year 2000/2001 Revised Budget 1,354; Fiscal Year 2001/2002 Bud get 1,329; Percent of change from Fiscal Year 2001 Revised is minus 1 point 8 pe rcent. Positions in whole number: Fiscal Year 1999/2000 Actual 7; Fiscal Year 2000/2001 Adopted Budget 8; Fiscal Year 2000/2001 Revised Budget 8; Fiscal Year 2001/2002 Budget 9; Percent of change from Fiscal Year 2001 Revised is 12 point 5 percent . MAJOR BUDGETARY CHANGES Wages and Benefits Anticipating growth in capital programs activities, the General Counsel's office needs an additional Senior Assistant Counsel position, starting the second quar ter of FY 2001/2002, to provide legal support to the capital program at a cost o f $93,000. OPERATIONS DIVISION - ADMINISTRATION RESPONSIBILITIES The Operations Division is responsible for delivering safe, courteous, and relia ble service to the residents of Santa Clara County. This Division consists of t hree functional units: Administration, Transportation, and Maintenance. Adminis tration consists of the Director of Operations' administrative unit, Service and Operations Planning, Rail Operations Planning and Activation and Protective Ser vices departments. MAJOR PROGRAMS Service and Operations Planning consists of Service Planning, Accessible Service s, and Operations Planning. Service Planning is responsible for planning, sched uling, and monitoring V T A's 79 bus routes and light rail service. Accessible Services ensures compliance with the Americans with Disabilities Act (A D A) and manages the paratransit service. Operations Planning has responsibility for th e operation of light rail and Altamont Commuter Express (A C E) shuttles, and co ordination of A C E, Caltrain, Dumbarton Bridge and Highway 17 Express services. In addition, Operations Planning has responsibility for passenger facility pla nning, coordination of the shelter and bus stop programs, monitoring Tamien Chil d Care Center operations, analysis and reporting of transit system performance, and management of the Advanced Communication System (A C S) project. Rail Operations Planning and Activation develops and implements the rail activat ion programs and functions for all planned light rail and commuter rail lines op erated by V T A. Successful implementation of the rail projects requires that a ll tasks necessary for the initiation of revenue service be comprehensively iden tified and accomplished in a systematic, integrated, and timely fashion. Rail O perations Planning and Activation has the day-to-day responsibility for monitori ng and coordinating rail activation activities.

Protective Services provides security for V T A bus and light rail service, and facilities. This department coordinates law enforcement activities with the con tracted Santa Clara County Sheriff unit and Pinkerton Security, a private securi ty contractor. Protective Services is also responsible for revenue collection a nd protection, management of V T A's Lost and Found program, the Vandalism Abate ment program, employee security systems, and fare inspection on light rail. A description of the Operations Division, Administration Organizational Chart Frank T. Martin, Director Administration, 4 positions Service and Operations Planning Department, Mike Aro, Deputy Director Service and Operations Planning Administration, 1 position Operations Planning Department, Jim Unites, Manager, 10 positions Accessible Services Department, George Tacke', Manager, 6 positions Service Planning Department, Bill Capps, Manager, 23 positions Rail Operations Planning and Activation Department, Austin Jenkins, Manager, 6 p ositions - 2 in administration and 3 in rail activation Protective Services Department, Ray Frank, Chief of Security, 13 positions - 3 in administration and 9 in fare inspection. This department also oversees the Sheriff's and Security Contracts. 65 full time positions. OPERATIONS - ADMINISTRATION DIVISION BUDGET IN THOUSAND DOLLARS: Wages and Salaries: Fiscal Year 1999/2000 Actual 2,839; Fiscal Year 2000/2001 Ad opted Budget 3,365; Fiscal Year 2000/2001 Revised Budget 3,432; Fiscal Year 2001 /2002 Budget 3,808; Percent of change from Fiscal Year 2001 Revised is 11 point 0 percent. Benefits: Fiscal Year 1999/2000 Actual 1,524; Fiscal Year 2000/2001 Adopted Budg et 1,301; Fiscal Year 2000/2001 Revised Budget 1,301; Fiscal Year 2001/2002 Budg et 1,575; Percent of change from Fiscal Year 2001 Revised is 21 point 1 percent. Wages, Salaries & Benefits Savings: Fiscal Year 1999/2000 Actual 0; Fiscal Year 2000/2001 Adopted Budget minus 12; Fiscal Year 2000/2001 Revised Budget minus 12 ; Fiscal Year 2001/2002 Budget 0; Percent of change from Fiscal Year 2001 Revise d is minus 100 percent. Materials and Supplies: Fiscal Year 1999/2000 Actual 197; Fiscal Year 2000/2001 Adopted Budget 309; Fiscal Year 2000/2001 Revised Budget 309; Fiscal Year 2001/2 002 Budget 368; Percent of change from Fiscal Year 2001 Revised is 19 point 1 pe rcent. Security: Fiscal Year 1999/2000 Actual 6,921; Fiscal Year 2000/2001 Adopted Budg et 8,012; Fiscal Year 2000/2001 Revised Budget 8,201; Fiscal Year 2001/2002 Budg et 9,313; Percent of change from Fiscal Year 2001 Revised is 13 point 6 percent. Professional and Special Services: Fiscal Year 1999/2000 Actual 56; Fiscal Year 2000/2001 Adopted Budget 455; Fiscal Year 2000/2001 Revised Budget 645; Fiscal Y ear 2001/2002 Budget 604; Percent of change from Fiscal Year 2001 Revised is min us 6 point 4 percent. Other Services: Fiscal Year 1999/2000 Actual 273; Fiscal Year 2000/2001 Adopted Budget 86; Fiscal Year 2000/2001 Revised Budget 540; Fiscal Year 2001/2002 Budge t 108; Percent of change from Fiscal Year 2001 Revised is minus 80 point 0 perce nt. Utilities: Fiscal Year 1999/2000 Actual 40; Fiscal Year 2000/2001 Adopted Budget

64; Fiscal Year 2000/2001 Revised Budget 64; Fiscal Year 2001/2002 Budget 76; P ercent of change from Fiscal Year 2001 Revised is 18 point 8 percent. Data Processing: Fiscal Year 1999/2000 Actual 38; Fiscal Year 2000/2001 Adopted Budget 34; Fiscal Year 2000/2001 Revised Budget 34; Fiscal Year 2001/2002 Budget 140; Percent of change from Fiscal Year 2001 Revised is 311 point 8 percent. Office Expense: Fiscal Year 1999/2000 Actual 66; Fiscal Year 2000/2001 Adopted B udget 47; Fiscal Year 2000/2001 Revised Budget 47; Fiscal Year 2001/2002 Budget 62; Percent of change from Fiscal Year 2001 Revised is 31 point 9 percent. Communications: Fiscal Year 1999/2000 Actual 5; Fiscal Year 2000/2001 Adopted Bu dget 0; Fiscal Year 2000/2001 Revised Budget 0; Fiscal Year 2001/2002 Budget 0; Percent of change from Fiscal Year 2001 Revised is not applicable. Employee Related Expense: Fiscal Year 1999/2000 Actual 53; Fiscal Year 2000/2001 Adopted Budget 86; Fiscal Year 2000/2001 Revised Budget 86; Fiscal Year 2001/20 02 Budget 107; Percent of change from Fiscal Year 2001 Revised is 24 point 4 per cent. Leases and Rents: Fiscal Year 1999/2000 Actual 134; Fiscal Year 2000/2001 Adopte d Budget 250; Fiscal Year 2000/2001 Revised Budget 250; Fiscal Year 2001/2002 Bu dget 274; Percent of change from Fiscal Year 2001 Revised is 9 point 6 percent. Miscellaneous: Fiscal Year 1999/2000 Actual 7; Fiscal Year 2000/2001 Adopted Bud get 28; Fiscal Year 2000/2001 Revised Budget 28; Fiscal Year 2001/2002 Budget 1, 288; Percent of change from Fiscal Year 2001 Revised is 4500 point 0 percent. A D A Paratransit: Fiscal Year 1999/2000 Actual 16,443; Fiscal Year 2000/2001 Ad opted Budget 20,403; Fiscal Year 2000/2001 Revised Budget 20,403; Fiscal Year 20 01/2002 Budget 25,152; Percent of change from Fiscal Year 2001 Revised is 23 poi nt 3 percent. Caltrain: Fiscal Year 1999/2000 Actual 6,850; Fiscal Year 2000/2001 Adopted Budg et 13,543; Fiscal Year 2000/2001 Revised Budget 13,808; Fiscal Year 2001/2002 Bu dget 14,300; Percent of change from Fiscal Year 2001 Revised is 3 point 6 percen t. Light Rail Shuttles: Fiscal Year 1999/2000 Actual 1,013; Fiscal Year 2000/2001 A dopted Budget 1,223; Fiscal Year 2000/2001 Revised Budget 1,223; Fiscal Year 200 1/2002 Budget 1,439; Percent of change from Fiscal Year 2001 Revised is 17 point 7 percent. Altamont Commuter Express: Fiscal Year 1999/2000 Actual 3,821; Fiscal Year 2000/ 2001 Adopted Budget 3,702; Fiscal Year 2000/2001 Revised Budget 3,702; Fiscal Ye ar 2001/2002 Budget 5,100; Percent of change from Fiscal Year 2001 Revised is 37 point 8 percent. Highway 17 Express: Fiscal Year 1999/2000 Actual 420; Fiscal Year 2000/2001 Adop ted Budget 545; Fiscal Year 2000/2001 Revised Budget 545; Fiscal Year 2001/2002 Budget 564; Percent of change from Fiscal Year 2001 Revised is 3 point 5 percent . Dumbarton Express: Fiscal Year 1999/2000 Actual 151; Fiscal Year 2000/2001 Adopt ed Budget 160; Fiscal Year 2000/2001 Revised Budget 160; Fiscal Year 2001/2002 B udget 197; Percent of change from Fiscal Year 2001 Revised is 23 point 1 percent . Contribution to Other Agencies: Fiscal Year 1999/2000 Actual 233; Fiscal Year 20 00/2001 Adopted Budget 335; Fiscal Year 2000/2001 Revised Budget 335; Fiscal Yea

r 2001/2002 Budget 345; Percent of change from Fiscal Year 2001 Revised is 3 poi nt 0 percent. Other Expense: Fiscal Year 1999/2000 Actual 3; Fiscal Year 2000/2001 Adopted Bud get 16; Fiscal Year 2000/2001 Revised Budget 516; Fiscal Year 2001/2002 Budget 1 6; Percent of change from Fiscal Year 2001 Revised is minus 96 point 9 percent. Total Expense: Fiscal Year 1999/2000 Actual 41,087; Fiscal Year 2000/2001 Adopte d Budget 53,952; Fiscal Year 2000/2001 Revised Budget 55,617; Fiscal Year 2001/2 002 Budget 64,836; Percent of change from Fiscal Year 2001 Revised is 16 point 6 percent. Positions in whole number: Fiscal Year 1999/2000 Actual 62; Fiscal Year 2000/200 1 Adopted Budget 64; Fiscal Year 2000/2001 Revised Budget 65; Fiscal Year 2001/2 002 Budget 65; Percent of change from Fiscal Year 2001 Revised is 0 point 0 perc ent. MAJOR BUDGETARY CHANGES Service Quality Improvement Security and protective services are provided by the Santa Clara County Sheriff' s Department and Pinkerton Security, a private security contractor. In Fiscal Ye ar 2001/2002, security and protective services provided by Pinkerton Security wi ll increase 1,111,000 dollars due to an increase in billing rates and to provide increased security at selected light rail stations and park and ride lots along the Guadalupe line. A D A Paratransit and Job Access Program V T A contracts for paratransit service, which is operated in compliance with th e Americans with Disabilities Act (A D A) regulations. In Fiscal Year 2001/2002 , it is estimated that the demand for paratransit services will increase at a ra te of 12 point 1 percent over the current level. In addition, it is projected t hat the cost per trip will also increase approximately 10 percent. Based on rid ership data and anticipated cost increases, 25,152,000 dollars is proposed for A D A paratransit service in Fiscal Year 2001/2002, an increase of 23 point 3 per cent over the Fiscal Year 2000/2001 Revised Budget. V T A will implement the third Job Access grant, obtained through the Federal Tr ansit Administration (F T A). The Job Access grant includes 500,000 dollars in FTA funding to provide a Guaranteed Ride program to CalWORKS participants. The County of Santa Clara Social Service Agency provides an equivalent amount of mat ching funds, 500,000 dollars, to fund these transportation services to CalWORKS participants. The budget for this program is recorded in the miscellaneous categ ory. V T A has also obtained funding of 750,000 dollars through the Metropolitan Tran sportation Commission (M T C) for a Low-Income Flexible Transportation (LIFT) pr oject, which provides services to children of CalWORKS participants. The County of Santa Clara Social Service Agency provides 750,000 dollars as matching funds . The budget for this program is also recorded in the miscellaneous category. In Fiscal Year 2001/2002, 250,000 dollars was added in professional services for the development of short and long range accessibility plans and consultant serv ices to ensure that equipment and facility design plans meet accessibility requi rements. Caltrain VTA's current contribution for Caltrain is 42% of the net operating expenses, ba sed on a formula included in the Joint Powers Agreement. VTA is estimating that its share of the operating expenses will be $14.3 million, a 3.6% increase over the FY 2000-01 Revised Budget. This increase reflects operating a full year of

80 weekday trains, fuel and energy increases, improved Pacific Bell Park servic e and VTA funding for a new summer demonstration of weekend service to Gilroy. Altamont Commuter Express Rail VTA's FY 2001-02 budget for ACE is planned to be $5.1 million, a 37.8% increase over the last fiscal year. This reflects a full year of the third round trip se rvice, the addition of a fourth roundtrip train in November 2001, additional res ources to support the highly successful connecting shuttles and VTA's share of t he ACE capital program. Member agency contributions are determined by a formula based on the total rider boardings in each county. VTA's current contribution i s 43% of the net expenses. VTA's budget for ACE also includes the full costs of the ACE shuttles operated i n Santa Clara County. VTA staff manages this program and contracts with a priva te carrier to operate the service. These shuttle expenses are reimbursed by ACE . Finally, VTA budgets and pays for the ACE use of the San Jose Diridon and San ta Clara Stations and for ACE ticketing services at San Jose Diridon Station. OPERATIONS DIVISION - TRANSPORTATION RESPONSIBILITIES Transportation is responsible for the operation of V T A's 79 bus routes, the 18 mile Guadalupe light rail line, which runs from South San Jose to North San Jos e terminating at the Baypointe Station on Tasman Drive, and the 11 point 7 mile Tasman light rail line, which runs from Mountain View to I 880 in Milpitas. Ove r 1,100 operators provide more than 24,000,000 miles of bus and light rail servi ce on an annual basis. Three bus operating facilities, one light rail facility, the Operations Control Center, and field supervision unit support transit opera tions. MAJOR ACTIVITY The Bid, Dispatch and Timekeeping (B D T) System is an online real time software system, which enables efficient and accurate data entry and tracking of operati ng activities, operator utilization, bidding, daily dispatching, timekeeping and payroll processing. A description of the Operations Transportation Division Organizational Chart Frank T. Martin, Director Matthew O. Tucker, Deputy Director Program Support, 1 position Administration, 8 positions Chaboya Transportation, Carolyn Stinemates, Acting Superintendent, 473 positions Guadalupe Transportation, Chester Patton, Superintendent, plus 109 positions Field Supervision, Mark Bugna, Assistant Superintendent, 37 positions Operation Control Center, John Carlson, Assistant Superintendent, 48 positions Cerone Transportation, Rich Golda, Superintendent, 389 positions North Transportation, Paul Googe, Superintendent, 279 positions A total of 1,345 positions - 1,143 full time operators, 50 part time operators, 152 other full time. OPERATIONS - TRANSPORTATION DIVISION BUDGET IN THOUSAND DOLLARS: Wages and Salaries: Fiscal Year 1999/2000 Actual 48,282; Fiscal Year 2000/2001 A dopted Budget 58,100; Fiscal Year 2000/2001 Revised Budget 58,171; Fiscal Year 2 001/2002 Budget 63,018; Percent of change from Fiscal Year 2001 Revised is 8 poi nt 3 percent. Benefits: Fiscal Year 1999/2000 Actual 31,694; Fiscal Year 2000/2001 Adopted Bud get 33,541; Fiscal Year 2000/2001 Revised Budget 33,492; Fiscal Year 2001/2002 B udget 38,591; Percent of change from Fiscal Year 2001 Revised is 15 point 2 perc

ent. Wages, Salaries and Benefits Savings: Fiscal Year 1999/2000 Actual 0; Fiscal Yea r 2000/2001 Adopted Budget minus 4,173; Fiscal Year 2000/2001 Revised Budget min us 6,173; Fiscal Year 2001/2002 Budget minus 3.907; Percent of change from Fisca l Year 2001 Revised is minus 36 point 7 percent. Materials and Supplies: Fiscal Year 1999/2000 Actual 73; Fiscal Year 2000/2001 A dopted Budget 46; Fiscal Year 2000/2001 Revised Budget 45; Fiscal Year 2001/2002 Budget 170; Percent of change from Fiscal Year 2001 Revised is 277 point 8 perc ent. Professional and Special Services: Fiscal Year 1999/2000 Actual 27; Fiscal Year 2000/2001 Adopted Budget 51; Fiscal Year 2000/2001 Revised Budget 51; Fiscal Yea r 2001/2002 Budget 158; Percent of change from Fiscal Year 2001 Revised is 209 p oint 8 percent. Other Services: Fiscal Year 1999/2000 Actual 89; Fiscal Year 2000/2001 Adopted B udget 38; Fiscal Year 2000/2001 Revised Budget 4; Fiscal Year 2001/2002 Budget 2 1; Percent of change from Fiscal Year 2001 Revised is 425 point 0 percent. Office Expense: Fiscal Year 1999/2000 Actual 85; Fiscal Year 2000/2001 Adopted B udget 66; Fiscal Year 2000/2001 Revised Budget 71; Fiscal Year 2001/2002 Budget 92; Percent of change from Fiscal Year 2001 Revised is 29 point 6 percent. Employee Related Expense: Fiscal Year 1999/2000 Actual 23; Fiscal Year 2000/2001 Adopted Budget 76; Fiscal Year 2000/2001 Revised Budget 76; Fiscal Year 2001/20 02 Budget 106; Percent of change from Fiscal Year 2001 Revised is 39 point 5 per cent. Leases and Rents: Fiscal Year 1999/2000 Actual 41; Fiscal Year 2000/2001 Adopted Budget 34; Fiscal Year 2000/2001 Revised Budget 39; Fiscal Year 2001/2002 Budge t 57; Percent of change from Fiscal Year 2001 Revised is 46 point 2 percent. Miscellaneous: Fiscal Year 1999/2000 Actual 8; Fiscal Year 2000/2001 Adopted Bud get 42; Fiscal Year 2000/2001 Revised Budget 40; Fiscal Year 2001/2002 Budget 41 ; Percent of change from Fiscal Year 2001 Revised is 2 point 5 percent. Other Expense: Fiscal Year 1999/2000 Actual 0; Fiscal Year 2000/2001 Adopted Bud get 29; Fiscal Year 2000/2001 Revised Budget 29; Fiscal Year 2001/2002 Budget 30 ; Percent of change from Fiscal Year 2001 Revised is 3 point 4 percent. Total Expense: Fiscal Year 1999/2000 Actual 80,322; Fiscal Year 2000/2001 Adopte d Budget 87,850; Fiscal Year 2000/2001 Revised Budget 85,845; Fiscal Year 2001/2 002 Budget 98,377; Percent of change from Fiscal Year 2001 Revised is 14 point 6 percent. Positions in whole number: Fiscal Year 1999/2000 Actual 1,244; Fiscal Year 2000/ 2001 Adopted Budget 1,313; Fiscal Year 2000/2001 Revised Budget 1,319; Fiscal Ye ar 2001/2002 Budget 1,345; Percent of change from Fiscal Year 2001 Revised is 2 point 0 percent. MAJOR BUDGETARY CHANGES Wages and Benefits During the Fiscal Year 2000/2001 mid-year budget review, 2 million dollars, repr esenting realized vacancy savings, was reduced from wages and benefits. As a res ult of the labor contract agreement, 8 point 8 million dollars will be added to wages and benefits in Fiscal Year 2001/2002. In addition, the annualized cost o f 37 new positions (four light rail operators, 26 operators, five dispatchers an d two dispatcher supervisors) added since July 2000 is estimated at 1 point 3 mi

llion dollars. Bus Service Expansion Due to the severe shortage of personnel, the Transit Service Plan developed for Fiscal Year 2000/2001 was modified. Service expansion plans have been suspended, and a 3 percent temporary service reduction plan was developed and implemented for the purpose of stabilizing the system and addressing service reliability iss ues subject to staffing availability. Service expansion is now planned to resum e in January 2002. The Fiscal Year 2001/2002 V T A's planned service expansion will result in annua lized service hours increasing from 1,659,900 to 1,710,700 and annualized servic e miles increasing from 23,102,700 to 23,809,269. In an effort to support the an nualized 3 point 1 percent service increase, a total of 25 bus operators will be added over the Fiscal Year 2000/2001 staffing levels. This is an on going prog ram needed to expand service and improve customer satisfaction. The total cost of this program is 703,000 dollars. Administrative Support One Office Specialist II position will be added in Fiscal Year 2001/2002 to supp ort the Operations Control Center at the Guadalupe Division. The result is a ne t increase of 53,000 dollars in wages and benefits. OPERATIONS DIVISION - MAINTENANCE RESPONSIBILITIES Maintenance is responsible for maintaining V T A's fleet of buses and light rail vehicles and the light rail system consisting of track, operating signals, powe r distribution system, and the adjoining rights-of-way. It maintains all facili ties, communications systems and most passenger facilities. Additional responsib ilities include materials management, management of all non-revenue vehicles (su pport vehicles) and maintenance information systems. Maintenance also provides quality assurance and warranty services for all of V T A as well as maintenance related training and engineering services. MAJOR PROGRAMS Bus Maintenance consists of North Maintenance, Chaboya Maintenance, Cerone Maint enance and Overhaul and Repair. The section is responsible for the timely and r eliable maintenance, preventive maintenance, heavy repair, engine rebuilding, ot her maintenance services, inspections and servicing of V T A's active fleet of 5 00 buses. Rail Maintenance consists of Light Rail Vehicle Maintenance and Way, Power and S ignal Maintenance. The section is responsible for the timely and reliable maint enance, preventive maintenance, inspections, repair and servicing of V T A's fle et of 50 light rail vehicles, right of way, rail system power, tracks, signals, station facilities and related equipment, and evaluation of rail maintenance eff iciency. Facilities Maintenance consists of Facilities Maintenance and Passenger Faciliti es Maintenance. The section is responsible for the timely and reliable maintena nce, preventive maintenance, inspections, repair of V T A's buildings, shelters, grounds, related equipment except right-of-way, hazardous waste disposal and ov erall environmental regulatory record keeping and oversight. This section evalu ates the efficiency and safety of all facilities and related equipment. Maintenance Support Services consists of Warranty and Quality Assurance, Non-rev enue Vehicle Maintenance, Maintenance Training, and Maintenance Information Syst ems. The section is responsible for the management of warranty and quality assu rance programs; administration and maintenance of the Non-revenue vehicle fleet,

development and provision of maintenance training programs; the administration of the maintenance information systems; development, administration and distribu tion of maintenance standard operating procedures. Materials Management consists of Bus Parts and Light Rail Parts. The section is responsible for the timely receipt, issue and management of bus and light rail parts inventory at all of V T A's facilities (Cerone, Chaboya, North, Guadalupe) . This section operates one main warehouse and three operating storerooms for b us parts; and one main warehouse and one Way Power and Signal storeroom for rail parts. A description of the Operations Maintenance Division Organizational Chart Frank T. Martin, Director George Barlow, Deputy Director Administration, 6 positions BUS MAINTENANCE: General Superintendent, Manuel Martinez, 2 positions Cerone Maintenance, Mark Coffield, Superintendent, 104 positions Chaboya Maintenance, Jeff Flagg, Superintendent, 114 positions North Maintenance, Heidi Samuels, Superintendent, 75 positions Bus Overhaul and Repair, Ciro Aguirre, Superintendent, 101 positions RAIL SYSTEMS MAINTANANCE: General Superintendent, Ray Borge, 2 positions Light Rail Vehicle Maintenance, Tom Kennedy, Superintendent, 97 positions Way, Power and Signal Maintenance, Curt Nicks, Superintendent, 79 positions FACILITIES MAINTENANCE: Facilities Maintenance, Art Taylor, Manager, 2 positions Facilities Maintenance, Robert Halstead, Acting Coordinator,61 positions Passenger Facilities Maintenance, Tony Kelly, Supervisor, 18 positions MAINTENANCE SUPPORT SERVICES Maintenance Support Services, Jerry Oxsen, Manager, 2 positions Warranty and Quality Assurance, Cris Crisologo, Manager, 11 positions Non Revenue Vehicle Maintenance, Carol Peterson, Coordinator, 6 positions Maintenance Training, Dwight Barnes, Supervisor, 23 positions Maintenance Information sys, Sharon McElligott, Senior Management Analyst, 4 po sitions MAINTENANCE ENGINEERING Maintenance Engineering, Chris Eichin, Manager, 2 positions Rail Maintenance Engineering,Vacant,Senior Systems Engineer , 4 positions Bus Maintenance Engineering, Art Douwes, Senior Mechanical Engineer , 3 position s Communications Maint., Bob Gave Manager,4 positions Materials Management, Glen Bolon, Manager, 12 positions Bus Parts, 30 positions Light Rail Parts, 8 positions 771 full time positions. OPERATIONS - MAINTENANCE DIVISION BUDGET IN THOUSAND DOLLARS: Wages and Salaries: Fiscal Year 1999/2000 Actual 27,691; Fiscal Year 2000/2001 A dopted Budget 33,443; Fiscal Year 2000/2001 Revised Budget 35,414; Fiscal Year 2 001/2002 Budget 38,005; Percent of change from Fiscal Year 2001 Revised is 7 poi nt 3 percent. Benefits: Fiscal Year 1999/2000 Actual 17,080; Fiscal Year 2000/2001 Adopted Bud get 17,975; Fiscal Year 2000/2001 Revised Budget 17,974; Fiscal Year 2001/2002 B udget 22,536; Percent of change from Fiscal Year 2001 Revised is 25 point 4 perc ent. Wages, Salaries and Benefits Savings: Fiscal Year 1999/2000 Actual 0; Fiscal Yea

r 2000/2001 Adopted Budget minus 784; Fiscal Year 2000/2001 Revised Budget minus 1,784; Fiscal Year 2001/2002 Budget minus 875; Percent of change from Fiscal Ye ar 2001 Revised is minus 51 point 0 percent. Materials and Supplies: Fiscal Year 1999/2000 Actual 12,615; Fiscal Year 2000/20 01 Adopted Budget 19,292; Fiscal Year 2000/2001 Revised Budget 18,263; Fiscal Ye ar 2001/2002 Budget 16,916; Percent of change from Fiscal Year 2001 Revised is m inus 7 point 4 percent. Professional and Special Services: Fiscal Year 1999/2000 Actual 14; Fiscal Year 2000/2001 Adopted Budget 266; Fiscal Year 2000/2001 Revised Budget 266; Fiscal Y ear 2001/2002 Budget 574; Percent of change from Fiscal Year 2001 Revised is 115 point 8 percent. Other Services: Fiscal Year 1999/2000 Actual 3,492; Fiscal Year 2000/2001 Adopte d Budget 4,437; Fiscal Year 2000/2001 Revised Budget 4,488; Fiscal Year 2001/200 2 Budget 4,614; Percent of change from Fiscal Year 2001 Revised is 2 point 8 per cent. Fuel: Fiscal Year 1999/2000 Actual 5,093; Fiscal Year 2000/2001 Adopted Budget 6 ,249; Fiscal Year 2000/2001 Revised Budget 7,453; Fiscal Year 2001/2002 Budget 7 ,706; Percent of change from Fiscal Year 2001 Revised is 3 point 4 percent. Traction Power: Fiscal Year 1999/2000 Actual 597; Fiscal Year 2000/2001 Adopted Budget 2,711; Fiscal Year 2000/2001 Revised Budget 2,711; Fiscal Year 2001/2002 Budget 3,297; Percent of change from Fiscal Year 2001 Revised is 21 point 6 perc ent. Tires: Fiscal Year 1999/2000 Actual 1,264; Fiscal Year 2000/2001 Adopted Budget 1,034; Fiscal Year 2000/2001 Revised Budget 1,034; Fiscal Year 2001/2002 Budget 1,084; Percent of change from Fiscal Year 2001 Revised is 4 point 8 percent. Utilities: Fiscal Year 1999/2000 Actual 2,500; Fiscal Year 2000/2001 Adopted Bud get 1,657; Fiscal Year 2000/2001 Revised Budget 1,657; Fiscal Year 2001/2002 Bud get 2,288; Percent of change from Fiscal Year 2001 Revised is 38 point 1 percent . Data Processing: Fiscal Year 1999/2000 Actual 13; Fiscal Year 2000/2001 Adopted Budget 31; Fiscal Year 2000/2001 Revised Budget 31; Fiscal Year 2001/2002 Budget 31; Percent of change from Fiscal Year 2001 Revised is 0 point 0 percent. Office Expense: Fiscal Year 1999/2000 Actual 105; Fiscal Year 2000/2001 Adopted Budget 67; Fiscal Year 2000/2001 Revised Budget 179; Fiscal Year 2001/2002 Budge t 126; Percent of change from Fiscal Year 2001 Revised is minus 29 point 6 perce nt. Communications: Fiscal Year 1999/2000 Actual 2,005; Fiscal Year 2000/2001 Adopte d Budget 1,710; Fiscal Year 2000/2001 Revised Budget 1,620; Fiscal Year 2001/200 2 Budget 1,828; Percent of change from Fiscal Year 2001 Revised is 12 point 8 pe rcent. Employee Related Expense: Fiscal Year 1999/2000 Actual 141; Fiscal Year 2000/200 1 Adopted Budget 279; Fiscal Year 2000/2001 Revised Budget 359; Fiscal Year 2001 /2002 Budget 358; Percent of change from Fiscal Year 2001 Revised is minus 0 poi nt 3 percent. Leases and Rents: Fiscal Year 1999/2000 Actual 101; Fiscal Year 2000/2001 Adopte d Budget 90; Fiscal Year 2000/2001 Revised Budget 100; Fiscal Year 2001/2002 Bud get 134; Percent of change from Fiscal Year 2001 Revised is 34 point 0 percent.

Miscellaneous: Fiscal Year 1999/2000 Actual 25; Fiscal Year 2000/2001 Adopted Bu dget 49; Fiscal Year 2000/2001 Revised Budget 49; Fiscal Year 2001/2002 Budget 4 6; Percent of change from Fiscal Year 2001 Revised is minus 6 point 1 percent. Other Expense: Fiscal Year 1999/2000 Actual 6; Fiscal Year 2000/2001 Adopted Bud get 6; Fiscal Year 2000/2001 Revised Budget 6; Fiscal Year 2001/2002 Budget 1; P ercent of change from Fiscal Year 2001 Revised is minus 83 point 3 percent. Total Expense: Fiscal Year 1999/2000 Actual 72,742; Fiscal Year 2000/2001 Adopte d Budget 88,512; Fiscal Year 2000/2001 Revised Budget 89,820; Fiscal Year 2001/2 002 Budget 98,669; Percent of change from Fiscal Year 2001 Revised is 9 point 9 percent. Reimbursements: Fiscal Year 1999/2000 Actual minus 3,011; Fiscal Year 2000/2001 Adopted Budget minus 8,200; Fiscal Year 2000/2001 Revised Budget minus 7,446; Fi scal Year 2001/2002 Budget minus 3,858; Percent of change from Fiscal Year 2001 Revised is minus48 point 2 percent. Net Total: Fiscal Year 1999/2000 Actual 69,731; Fiscal Year 2000/2001 Adopted Bu dget 80,312; Fiscal Year 2000/2001 Revised Budget 82,374; Fiscal Year 2001/2002 Budget 94,811; Percent of change from Fiscal Year 2001 Revised is 15 point 1 per cent. Positions in whole number: Fiscal Year 1999/2000 Actual 607; Fiscal Year 2000/20 01 Adopted Budget 710; Fiscal Year 2000/2001 Revised Budget 764; Fiscal Year 200 1/2002 Budget 771; Percent of change from Fiscal Year 2001 Revised is 0 point 9 percent. MAJOR BUDGETARY CHANGES Wages and Benefits During the Fiscal Year 2000/2001 midyear budget review, 1 million dollars, repre senting realized vacancy savings, was reduced from the wages and benefits budget . During Fiscal Year 2000/2001, 48 positions from the Materials Management Depar tment of the Fiscal Resources Division were transferred to the Maintenance Depar tment. In Fiscal Year 2001/2002, the additional annualized cost of these 48 posi tions is estimated at 1 point 8 million dollars. Additionally, 3 point 8 million dollars will be added to wages and benefits as a result of the labor agreements . Increases in Energy Cost The recent increase in fuel prices has impacted the Maintenance Department's bud get significantly. The diesel fuel budget for Fiscal Year 2001/2002 is 7,706,00 0 dollars, 3 point 4 percent or 253,000 dollars over the Fiscal Year 2000/2001 R evised Budget for price increase and low sulfur fuel. In addition, 585,500 dolla rs will be added to the traction power budget and 567,030 dollars will be added to the utility budget for anticipated rate increases for electricity, natural ga s and propane usage. Facilities Expansion The Light Rail Facilities Building, which is currently being expanded, will incr ease from 123,861 square feet to 175,111 square feet. In order to maintain V T A's current standard of cleanliness, safety and appearance, two Transit Faciliti es Worker-System positions will be added. The result is an increase of 58,000 d ollars in salaries and benefits. The North Operating Facility will expand from 24,228 square feet to over 86,000 square feet when the North Facility Expansion project is completed. With the in crease in the size of the facility and the landscaping area to be maintained, on e Transit Maintenance Supervisor and three Transit Facilities Worker-System posi tions will be added to maintain the current standard of cleanliness, safety and

appearance. The result is an increase of 200,000 dollars in salaries and benefi ts. Maintenance Training Program The Light Rail Procurement program must have qualified maintenance training staf f to provide High Voltage Electrical Safety hands on training for Overhead Line Workers and Substation Maintainers. An additional Maintenance Instructor (Light Rail Transit) will be added at the Guadalupe Division to provide this training, resulting in an increase of 97,000 dollars in salaries and benefits. Wheel/Rail Interface Study In order to determine the optimum wheel/rail interface geometry and develop a re fined maintenance program for wheel and rail maintenance, a wheel/rail interface study will be conducted in Fiscal Year 2001/2002 by an outside vendor at a cost of 300,000 dollars. The study includes field investigations, computer simulati ons and follow-up surveys. Optimizing the wheel/rail interface will result in t angible benefits to V T A by reducing wheel wear and extending the useful life o f the track. Other benefits include a reduction in noise as well as a possible reduction in grease delivery from automated wayside lubricators. Parts and Rebuild Reimbursements The budget for parts and rebuild reimbursements has been refined so they conform to the actual recording and settling of maintenance work orders in the accounti ng system. In the Fiscal Year 2001/2002 budget, 1,500,000 dollars was reduced fr om the parts account and the reimbursement account was reduced by 3,588,000 doll ars. FISCAL RESOURCES DIVISION RESPONSIBILITIES The Fiscal Resources Division fulfills the Controller function for V T A includi ng financial reporting, accounting, budgeting, internal audit, investment and ca sh management, payroll, accounts receivable, accounts payable, and risk manageme nt. It manages V T A's centralized computer resources, contract process and far ebox revenue services. In addition, purchasing and messenger/mail services are the responsibility of the Fiscal Resources Division. MAJOR PROGRAMS Information Services manages centralized data processing and maintains V T A's i nformation systems. Contracts and Materials Management is responsible for the purchase of goods and services, the contract process, and the messenger/mail service. Budget and Analysis assists the Chief Financial Officer and the divisions with t he development of annual budget requests and prepares V T A's annual budget for the Board of Directors' consideration; monitors and modifies the budget througho ut the fiscal year; and performs financial and operational analyses. Internal Audit is an independent appraisal activity established within V T A to examine and evaluate its activities as a service to management. Investment Services is responsible for managing V T A's investments and preparin g investment reports for management and the V T A Board of Directors. Program and Project Support Services is responsible for dealing with programmati c issues, e.g., financial capacity analysis, sales tax audits, bench marking, an d collective bargaining, that have fiscal implications to the organization. Disbursements manages payment to V T A employees, retirees, and vendors through

Accounts Payable. This unit reports payroll and taxes for V T A employees. Risk Management is responsible for implementing the procedures used to identify, assess, control, and finance accidental losses. The department is responsible for employee safety and health, safety awards programs, environmental compliance , and emergency response. It also manages A D A, F M L A, return to work/modifi ed work, and earned benefit payroll integration programs. Financial Accounting is responsible for maintaining the financial accounting sys tem and records for all of V T A's business and administrative financial activit ies. The Accounting Department is also responsible for financial reporting, reve nue billings for projects, contracts, and other program services. The cash depos it function is performed here. Revenue Services is responsible for processing fare revenue for V T A. In additi on, this department also administers V T A's ticket and pass activities, includi ng the monthly pass consignment programs. Capital Projects and Controls is responsible for providing the support and admin istration for the Project System Module within our E R P system. Description of the Fiscal Resources Division Organizational Chart Scott Buhrer, Chief Financial Officer Program and Project Support Services, 4 positions Administration, 3 positions Information Services Group, Richard Kurk, Chief Information Officer, 58 position s Budget and Analysis, Victor Chan, Manager, 6 positions Investment Services, Manny Bagnas, Manager, 3 positions Internal Audit, Grace Salandanan, Manager, 6 positions Capital Projects and Controls, Derek Carrier, Manager, 7 positions Contracts and Materials Management, Tom Smith, Manager, 54 positions. Jerry Rosenquist, Deputy Director Disbursements, Ali Hudda, Manager, 29 positions Financial Services, Linda Willis, Manager, 16 positions Risk management, Nanci Eksterowicz, Manager, 16 positions Revenue Services, David Sausjord, Manager, 13 positions. 217 Full-Time Positions FISCAL RESOURCES DIVISION BUDGET IN THOUSAND DOLLARS: Wages and Salaries: Fiscal Year 1999/2000 Actual 10,077; Fiscal Year 2000/2001 A dopted Budget 13,193; Fiscal Year 2000/2001 Revised Budget 2,037; Fiscal Year 20 01/2002 Budget 13,225; Percent of change from Fiscal Year 2001 Revised is 9 poin t 9 percent. Benefits: Fiscal Year 1999/2000 Actual 5,638; Fiscal Year 2000/2001 Adopted Budg et 5,099; Fiscal Year 2000/2001 Revised Budget 4,430; Fiscal Year 2001/2002 Budg et 5,049; Percent of change from Fiscal Year 2001 Revised is 14 point 0 percent. Wages, Salaries and Benefits Savings: Fiscal Year 1999/2000 Actual 0; Fiscal Yea r 2000/2001 Adopted Budget minus 47; Fiscal Year 2000/2001 Revised Budget minus 47; Fiscal Year 2001/2002 Budget 0; Percent of change from Fiscal Year 2001 Revi sed is minus 100 percent. Materials and Supplies: Fiscal Year 1999/2000 Actual 493; Fiscal Year 2000/2001 Adopted Budget 80; Fiscal Year 2000/2001 Revised Budget 85; Fiscal Year 2001/200 2 Budget 82; Percent of change from Fiscal Year 2001 Revised is minus 3 point 5 percent.

Professional and Special Services: Fiscal Year 1999/2000 Actual 3,476; Fiscal Ye ar 2000/2001 Adopted Budget 3,706; Fiscal Year 2000/2001 Revised Budget 12,021; Fiscal Year 2001/2002 Budget 8,572; Percent of change from Fiscal Year 2001 Revi sed is minus 28 point 7 percent. Other Services: Fiscal Year 1999/2000 Actual 17; Fiscal Year 2000/2001 Adopted B udget 11; Fiscal Year 2000/2001 Revised Budget 11; Fiscal Year 2001/2002 Budget 11; Percent of change from Fiscal Year 2001 Revised is 0 point 0 percent. Other Services: Fiscal Year 1999/2000 Actual 1,098; Fiscal Year 2000/2001 Adopte d Budget 629; Fiscal Year 2000/2001 Revised Budget 610; Fiscal Year 2001/2002 Bu dget 585; Percent of change from Fiscal Year 2001 Revised is minus 4 point 1 per cent. Insurance: Fiscal Year 1999/2000 Actual 5,736; Fiscal Year 2000/2001 Adopted Bud get 4,862; Fiscal Year 2000/2001 Revised Budget 4,862; Fiscal Year 2001/2002 Bud get 5,273; Percent of change from Fiscal Year 2001 Revised is 8 point 5 percent. Data Processing: Fiscal Year 1999/2000 Actual 2,062; Fiscal Year 2000/2001 Adopt ed Budget 2,178; Fiscal Year 2000/2001 Revised Budget 3,478; Fiscal Year 2001/20 02 Budget 3,438; Percent of change from Fiscal Year 2001 Revised is minus 1 poin t 2 percent. Office Expense: Fiscal Year 1999/2000 Actual 178; Fiscal Year 2000/2001 Adopted Budget 302; Fiscal Year 2000/2001 Revised Budget 230; Fiscal Year 2001/2002 Budg et 245; Percent of change from Fiscal Year 2001 Revised is 6 point 5 percent. Communications: Fiscal Year 1999/2000 Actual 4; Fiscal Year 2000/2001 Adopted Bu dget 220; Fiscal Year 2000/2001 Revised Budget 220; Fiscal Year 2001/2002 Budget 54; Percent of change from Fiscal Year 2001 Revised is minus 75 point 5 percent . Employee Related Expense: Fiscal Year 1999/2000 Actual 258; Fiscal Year 2000/200 1 Adopted Budget 265; Fiscal Year 2000/2001 Revised Budget 240; Fiscal Year 2001 /2002 Budget 279; Percent of change from Fiscal Year 2001 Revised is 16 point 3 percent. Leases and Rents: Fiscal Year 1999/2000 Actual 39; Fiscal Year 2000/2001 Adopted Budget 69; Fiscal Year 2000/2001 Revised Budget 69; Fiscal Year 2001/2002 Budge t 64; Percent of change from Fiscal Year 2001 Revised is minus 7 point 2 percent . Miscellaneous: Fiscal Year 1999/2000 Actual 271; Fiscal Year 2000/2001 Adopted B udget 325; Fiscal Year 2000/2001 Revised Budget 325; Fiscal Year 2001/2002 Budge t 342; Percent of change from Fiscal Year 2001 Revised is 5 point 2 percent. Other Expense: Fiscal Year 1999/2000 Actual 86; Fiscal Year 2000/2001 Adopted Bu dget 18; Fiscal Year 2000/2001 Revised Budget 18; Fiscal Year 2001/2002 Budget 1 9; Percent of change from Fiscal Year 2001 Revised is 5 point 6 percent. Total Expense: Fiscal Year 1999/2000 Actual 29,433; Fiscal Year 2000/2001 Adopte d Budget 30,910; Fiscal Year 2000/2001 Revised Budget 38,589; Fiscal Year 2001/2 002 Budget 37,238; Percent of change from Fiscal Year 2001 Revised is minus 3 po int 5 percent. Reimbursements: Fiscal Year 1999/2000 Actual minus 77; Fiscal Year 2000/2001 Ado pted Budget minus 488; Fiscal Year 2000/2001 Revised Budget minus 492; Fiscal Ye ar 2001/2002 Budget minus 1440; Percent of change from Fiscal Year 2001 Revised is 192 point 7 percent.

Net Total: Fiscal Year 1999/2000 Actual 29,356; Fiscal Year 2000/2001 Adopted Bu dget 30,422; Fiscal Year 2000/2001 Revised Budget 38,097; Fiscal Year 2001/2002 Budget 35,798; Percent of change from Fiscal Year 2001 Revised is minus 6 point 0 percent. Positions in whole number: Fiscal Year 1999/2000 Actual 209; Fiscal Year 2000/20 01 Adopted Budget 251; Fiscal Year 2000/2001 Revised Budget 212; Fiscal Year 200 1/2002 Budget 217; Percent of change from Fiscal Year 2001 Revised is 2 point 4 percent. MAJOR BUDGETARY CHANGES Information Systems, Communication and Technologies During the early part of Fiscal Year 2000/2001, Information Service Group (I S G ) had requested a total of 7.8 million dollars increase to its professional serv ices budget for securing information system support and supplementing V T A's in formation service staff. In Fiscal Year 2001/2002, I S G will require only 4 poi nt 0 million dollars of such consultant support as we have stabilized the system s and become more self reliant. This resulted in a reduction of 3 point 8 millio n dollars. 166,000 dollars in communications has been reduced in Fiscal Year 200 1/2002 to reflect anticipated usage. Capital Program Support The Contracts and Materials Management department needs two additional positions to support and coordinate contract activities of the 1996 M B T I P Highway Pro gram, which begins in April 2001. One Senior Construction Contract Administrato r and one Contract Administrator II are requested for a total of 168,000 dollars . Administrative Support Financial Accounting Department requested a new Financial Analyst to conduct on going and one time projects at a cost of 84,000 dollars and an additional 136,00 0 dollars for the annual financial audit. Consultant services are needed in the Program and Project Support Services Department for financial advisory service i n the areas of bond issuance, actuarial studies and tax benefit transfers. The C ontracts and Materials Management Department also requested consultant help in t he development of workstation procedures for efficiency improvement. The additio nal costs of these services are estimated at 378,000 dollars. Insurance The increases include 331,000 dollars for the self insurance program and 80,000 dollars for property casualty premium. HUMAN RESOURCES DIVISION RESPONSIBILITIES The Human Resources Division is responsible for providing organizational support in the areas of organizational development and training, personnel selection, e mployee benefits, employee wellness, employee relations, and employee civil righ ts. MAJOR PROGRAMS The Human Resources Division comprises four departments, Office of Civil Rights and Employee Relations, Personnel, Benefits and Organizational Development and T raining. Office of Civil Rights and Employee Relations Department is responsible for prep aring and administering V T A's Equal Employment Opportunity/Affirmative Action Plan and the Disadvantaged Business Enterprise/Small Business Enterprise Program , overseeing V T A's Americans with Disabilities Act Program, and conducting dis crimination complaint investigations. The department's activities include confli

ct resolution and contracts negotiation with the four bargaining units. The Dep artment also provides training and consultation on employee relations' issues. Personnel Department administers the compensation, selection, and personnel reco rd functions. The Department's activities include classification and compensati on studies to appropriately define work and to ensure the compensation is compet itive. The Department is responsible for recruitment, including targeted outrea ch, and examination of candidates to fill vacancies throughout V T A with qualif ied employees. Position Control and Records' activities include processing all personnel transactions and maintaining official personnel files. Benefits Department is responsible for administering employee and retiree benefi ts programs, Deferred Compensation Program, P E R S retirement program, and disa bility insurance. The Department serves as staff to the A T U Pension Board and the V T A Deferred Compensation Committee. The Department also develops and ad ministers the wellness program. Additionally, the Benefits Department is respon sible for administering and coordinating the drug testing program to ensure the public's safety and V T A's compliance with its drug free workplace policy as we ll as Federal Regulations. Organizational Development and Training Department is responsible for V T A wide development and coordination of training. The Department is responsible for t he training of Bus and Light Rail Operators, both initial and refresher training . The training programs offered include six week training for new Bus Operator and a seven week training for new Light Rail Operators. Additional training inc ludes Verification of Transit Training safety and renewal classes, customer serv ice training, DMV certification, and accident retraining. In the area of profess ional development, current programs focus on supervisor and management training, Computer Skills, Customer service, team building, V T A I I S training, employe e ownership, and tuition assistance. Description of the Human Resources Division Organizational Chart Kaye L. Evleth, Director Administration, 3 positions Organizational Development and Training, Denise Daly, Manager, 62 positions Office of Civil Rights and Employee Relations, Candice A. Gonzalez, Manager, 13 positions Personnel, Robert Escobar, Manager, 28 positions Benefits, Shellie Albright, Manager, 19 positions 126 full time positions. HUMAN RESOURCES DIVISION BUDGET IN THOUSAND DOLLARS: Wages and Salaries: Fiscal Year 1999/2000 Actual 4,166; Fiscal Year 2000/2001 Ad opted Budget 5718; Fiscal Year 2000/2001 Revised Budget 5718; Fiscal Year 2001/2 002 Budget 6,479; Percent of change from Fiscal Year 2001 Revised is 13 point 3 percent. Benefits: Fiscal Year 1999/2000 Actual 2211; Fiscal Year 2000/2001 Adopted Budge t 2205; Fiscal Year 2000/2001 Revised Budget 2205; Fiscal Year 2001/2002 Budget 2643; Percent of change from Fiscal Year 2001 Revised is 19 point 9 percent. Materials and Supplies: Fiscal Year 1999/2000 Actual 31; Fiscal Year 2000/2001 A dopted Budget 70; Fiscal Year 2000/2001 Revised Budget 70; Fiscal Year 2001/2002 Budget 165; Percent of change from Fiscal Year 2001 Revised is 135 point 7 perc ent. Professional and Special Services: Fiscal Year 1999/2000 Actual 852; Fiscal Year 2000/2001 Adopted Budget 1627; Fiscal Year 2000/2001 Revised Budget 1,627; Fisc al Year 2001/2002 Budget 1,859; Percent of change from Fiscal Year 2001 Revised

is 14 point 3 percent. Other Services: Fiscal Year 1999/2000 Actual 6; Fiscal Year 2000/2001 Adopted Bu dget 0; Fiscal Year 2000/2001 Revised Budget 0; Fiscal Year 2001/2002 Budget 0; Percent of change from Fiscal Year 2001 Revised is not applicable. Other Services: Fiscal Year 1999/2000 Actual 401; Fiscal Year 2000/2001 Adopted Budget 407; Fiscal Year 2000/2001 Revised Budget 1,383; Fiscal Year 2001/2002 Bu dget 1,178; Percent of change from Fiscal Year 2001 Revised is minus 14 point 8 percent. Data Processing: Fiscal Year 1999/2000 Actual 5; Fiscal Year 2000/2001 Adopted B udget 0; Fiscal Year 2000/2001 Revised Budget 0; Fiscal Year 2001/2002 Budget 0; Percent of change from Fiscal Year 2001 Revised is not applicable. Office Expense: Fiscal Year 1999/2000 Actual 140; Fiscal Year 2000/2001 Adopted Budget 105; Fiscal Year 2000/2001 Revised Budget 105; Fiscal Year 2001/2002 Budg et 123; Percent of change from Fiscal Year 2001 Revised is 17 point 1 percent. Employee Related Expense: Fiscal Year 1999/2000 Actual 350; Fiscal Year 2000/200 1 Adopted Budget 888; Fiscal Year 2000/2001 Revised Budget 888; Fiscal Year 2001 /2002 Budget 1,229; Percent of change from Fiscal Year 2001 Revised is 38 point 4 percent. Leases and Rents: Fiscal Year 1999/2000 Actual 43; Fiscal Year 2000/2001 Adopted Budget 32; Fiscal Year 2000/2001 Revised Budget 32; Fiscal Year 2001/2002 Budge t 33; Percent of change from Fiscal Year 2001 Revised is 3 point 1 percent. Miscellaneous: Fiscal Year 1999/2000 Actual 26; Fiscal Year 2000/2001 Adopted Bu dget 203; Fiscal Year 2000/2001 Revised Budget 203; Fiscal Year 2001/2002 Budget 165; Percent of change from Fiscal Year 2001 Revised is minus 18 point 7 percen t. Other Expense: Fiscal Year 1999/2000 Actual 7; Fiscal Year 2000/2001 Adopted Bud get 48; Fiscal Year 2000/2001 Revised Budget 48; Fiscal Year 2001/2002 Budget 50 ; Percent of change from Fiscal Year 2001 Revised is 4 point 2 percent. Total Expense: Fiscal Year 1999/2000 Actual 8,238; Fiscal Year 2000/2001 Adopted Budget 11,303; Fiscal Year 2000/2001 Revised Budget 12,279; Fiscal Year 2001/20 02 Budget 13,924; Percent of change from Fiscal Year 2001 Revised is 13 point 4 percent. Positions in whole number: Fiscal Year 1999/2000 Actual 101; Fiscal Year 2000/20 01 Adopted Budget 123; Fiscal Year 2000/2001 Revised Budget 126; Fiscal Year 200 1/2002 Budget 126; Percent of change from Fiscal Year 2001 Revised is 0 point 0 percent. MAJOR BUDGETARY CHANGES Wages and Benefits Fiscal Year 2001/2002 shows a 1,199,000 dollars increase in this category, prima rily due to salary increases and realignments. Training - Employee Related Expense This budget has identified two important areas in training for additional resour ces. Implementation of our E R P system has spawned a wide variety of demands f or technical training throughout V T A. This budget calls for 100,000 dollars in order to identify technical training needs and overall scope for a comprehensiv e and coordinated training program. Another area of focus concerns the growth an d development of managerial skills within the V T A workforce. An excellent mean s of preparing staff for higher levels of responsibility is through a strong Men

torship eloping skilled build a

Program. This budget allocates an additional 100,000 dollars towards dev such a program that will build a strong population of knowledgeable and managers, ensure that valuable organizational learning is not lost, and stable workforce with high morale and competent employees.

PLANNING AND DEVELOPMENT DIVISION RESPONSIBILITIES The Planning and Development Division plans and implements projects that improve and expand V T A's transit system. This division is responsible for the planni ng and funding for all V T A transit projects. It also performs environmental c learance and real estate acquisition for all V T A transit and highway projects. In addition it provides project management, design and construction administra tion for V T A's transit facilities projects. The division has ongoing responsi bilities in the areas of long-range planning; transit-oriented development plann ing; transit corridor studies; grant programming, development and administration ; space planning; hazardous materials remediation; development review; joint dev elopment; property management; document control; reproduction; and general suppo rt of rail, bus and facility maintenance programs. MAJOR PROGRAMS Some of the major current programs include: Major rehabilitation and expansion o f V T A's operating facilities at North, Cerone and Guadalupe divisions; design and construction of the 1996 M B T I P Caltrain projects; Silicon Valley Rapid T ransit Corridor Major Investment Study; environmental clearance and real estate acquisition for all 1996 M B T I P highway and transit projects; design and cons truction of the Gilroy, West Valley College and Sunnyvale transit centers; Downt own/East Valley Conceptual Design; L R T shelter and windscreen improvements; Sh ort Range Transit Plan; Bus Stop Improvement Program; Altamont Commuter Rail Sta tion Improvements; and L R T Station Signage Improvement Program. Description of the Planning and Development Division Organizational Chart Jim Pierson, Director Administration, 3 positions Planning and Programming, James Lightbody, Manager, 21 positions Facilities Design and construction, Ken Brencic, Manager, 37 positions Records and Reproduction, Tim Ellenberger, Manager, 17 positions Real Estate, Ross Dalpre, Manager, 10 positions Environmental Planning, Tom Fitzwater, Manager, 8 positions 97 full time positions. PLANNING AND DEVELOPMENT DIVISION BUDGET IN THOUSAND DOLLARS: Wages and Salaries: Fiscal Year 1999/2000 Actual 3,452; Fiscal Year 2000/2001 Ad opted Budget 5,098; Fiscal Year 2000/2001 Revised Budget 5,062; Fiscal Year 2001 /2002 Budget 6,240; Percent of change from Fiscal Year 2001 Revised is 23 point 3 percent. Benefits: Fiscal Year 1999/2000 Actual 2,010; Fiscal Year 2000/2001 Adopted Budg et 1,831; Fiscal Year 2000/2001 Revised Budget 1,824; Fiscal Year 2001/2002 Budg et 2,389; Percent of change from Fiscal Year 2001 Revised is 31 point 0 percent. Materials and Supplies: Fiscal Year 1999/2000 Actual 53; Fiscal Year 2000/2001 A dopted Budget 133; Fiscal Year 2000/2001 Revised Budget 133; Fiscal Year 2001/20 02 Budget 232; Percent of change from Fiscal Year 2001 Revised is 74 point 4 per cent. Professional and Special Services: Fiscal Year 1999/2000 Actual 265; Fiscal Year 2000/2001 Adopted Budget 656; Fiscal Year 2000/2001 Revised Budget 1046; Fiscal Year 2001/2002 Budget 721; Percent of change from Fiscal Year 2001 Revised is m

inus 31 point 1 percent. Other Services: Fiscal Year 1999/2000 Actual 369; Fiscal Year 2000/2001 Adopted Budget 425; Fiscal Year 2000/2001 Revised Budget 377; Fiscal Year 2001/2002 Budg et 388; Percent of change from Fiscal Year 2001 Revised is 2 point 9 percent. Data Processing: Fiscal Year 1999/2000 Actual 7; Fiscal Year 2000/2001 Adopted B udget 0; Fiscal Year 2000/2001 Revised Budget 0; Fiscal Year 2001/2002 Budget 0; Percent of change from Fiscal Year 2001 Revised is not applicable. Office Expense: Fiscal Year 1999/2000 Actual 85; Fiscal Year 2000/2001 Adopted B udget 61; Fiscal Year 2000/2001 Revised Budget 61; Fiscal Year 2001/2002 Budget 67; Percent of change from Fiscal Year 2001 Revised is 9 point 8 percent. Employee Related Expense: Fiscal Year 1999/2000 Actual 40; Fiscal Year 2000/2001 Adopted Budget 67; Fiscal Year 2000/2001 Revised Budget 67; Fiscal Year 2001/20 02 Budget 74; Percent of change from Fiscal Year 2001 Revised is 10 point 4 perc ent. Leases and Rents: Fiscal Year 1999/2000 Actual 173; Fiscal Year 2000/2001 Adopte d Budget 102; Fiscal Year 2000/2001 Revised Budget 105; Fiscal Year 2001/2002 Bu dget 145; Percent of change from Fiscal Year 2001 Revised is 38 point 1 percent. Miscellaneous: Fiscal Year 1999/2000 Actual 237; Fiscal Year 2000/2001 Adopted B udget 374; Fiscal Year 2000/2001 Revised Budget 374; Fiscal Year 2001/2002 Budge t 377; Percent of change from Fiscal Year 2001 Revised is 0 point 8 percent. Contribution to Other Agencies: Fiscal Year 1999/2000 Actual 140; Fiscal Year 20 00/2001 Adopted Budget 150; Fiscal Year 2000/2001 Revised Budget 150; Fiscal Yea r 2001/2002 Budget 156; Percent of change from Fiscal Year 2001 Revised is 4 poi nt 0 percent. Other Expense: Fiscal Year 1999/2000 Actual 1; Fiscal Year 2000/2001 Adopted Bud get 0; Fiscal Year 2000/2001 Revised Budget 0; Fiscal Year 2001/2002 Budget 0; P ercent of change from Fiscal Year 2001 Revised is not applicable. Total Expense: Fiscal Year 1999/2000 Actual 6,832; Fiscal Year 2000/2001 Adopted Budget 8,897; Fiscal Year 2000/2001 Revised Budget 9,199; Fiscal Year 2001/2002 Budget 10,789; Percent of change from Fiscal Year 2001 Revised is 17 point 3 pe rcent. Reimbursements: Fiscal Year 1999/2000 Actual minus 2477; Fiscal Year 2000/2001 A dopted Budget minus 2857; Fiscal Year 2000/2001 Revised Budget minus 4103; Fisca l Year 2001/2002 Budget minus 3788; Percent of change from Fiscal Year 2001 Revi sed is minus7 point 7 percent. Net Total: Fiscal Year 1999/2000 Actual 4,355; Fiscal Year 2000/2001 Adopted Bud get 6,040; Fiscal Year 2000/2001 Revised Budget 5,096; Fiscal Year 2001/2002 Bud get 7,001; Percent of change from Fiscal Year 2001 Revised is 37 point 4 percent . Positions in whole number: Fiscal Year 1999/2000 Actual 65; Fiscal Year 2000/200 1 Adopted Budget 83; Fiscal Year 2000/2001 Revised Budget 86; Fiscal Year 2001/2 002 Budget 97; Percent of change from Fiscal Year 2001 Revised is 12 point 8 per cent. MAJOR BUDGETARY CHANGES Wages and Benefits In order to address immediate staffing concerns, Planning and Development added seven positions in the latter part of Fiscal Year 2000-01. These new positions i

ncluded two Document Control Clerks to assist in the growing area of document ar chival for the Highway Program; one Associate Architect to work on the major fac ilities expansion program; one Environmental Analyst to support the capital prog ram and development review; one Engineering Technician 3 to replace consultant s ervices in Facilities Design and Construction; one Transportation Planner I to a ssist in the long-range planning efforts; and one Grants Coordinator to support the 1996 Measure B Transportation Improvement Program. Additionally, Rail Design and Construction transferred one Office Management Coordinator and four Office Specialists to Planning and Development, and Planning and Development transferre d one Construction Inspector to Rail Design and Construction. As a result, Planning and Development has an increase of eleven positions. Coupl ed with the impact of salary realignments, Planning and Development projects a 1 point 7 million dollars increase in wages and benefits in Fiscal Year 2001/2002 . Professional Service The Fiscal Year 2000/2001 Revised Budget included several one-time items: two st udies, temporary management service, and other miscellaneous professional servic es for a total of 390,000 dollars. RAIL DESIGN AND CONSTRUCTION DIVISION RESPONSIBILITIES The Rail Design and Construction Division completes engineering designs and impl ements construction projects that improve and expand V T A's rail transit system . The division accomplishes this task by managing the preparation of constructi on plans and specifications, administration of construction contracts for rail a nd related capital improvement projects and coordination of a rail project handover and acceptance with V T A's Operations Division. Additionally, the divisio n has ongoing responsibilities in project utility coordination, U S A locating f or V T A's underground power and communications, permit administration, and fiel d surveying activities including support of light rail maintenance programs. MAJOR PROGRAMS: The Tasman East Light Rail Project consists of a five-mile extension of V T A's existing light rail system from North First Street in the city of San Jose throu gh the city of Milpitas to Hostetter Avenue in northeast San Jose. The project also includes the Baypointe Station, which serves as a major transfer point with the existing Guadalupe Line and opened on December 20, 1999, in conjunction wit h Tasman West. The next phase of the Tasman East for revenue service will be to I 880/Milpitas by May 2001 and the entire project to Hostetter by March 2004. The Capitol Light Rail Project consists of 3 point 3 mile extension from Hostett er Avenue in San Jose along Capitol Avenue to just east of Alum Rock Avenue. Cu rrent plans are to open Capitol and Tasman East at the same time in March 2004. The Vasona Light Rail Project consists of building the Vasona Light Rail Line fr om downtown San Jose to the San Jose Arena/Caltrain Station and south to Winches ter Station in Campbell. The scheduled completion date is November 2004. New Low Floor Light Rail Vehicles will be introduced along the Tasman West/East Light Rail Projects beginning in 2002. A recent Board decision to replace exist ing vehicles with 100 low floor vehicles will require a major modification to ex isting Guadalupe station platforms from 2002 through 2004. Low floor vehicles pr ovide level boarding for all passengers. The Caltrain Service Improvement Program involves a number of service improvemen ts for Caltrain in Santa Clara County. A program of projects will be presented to the Board of Directors for approval and are predominately funded by the 1996

Measure B Transportation Improvement Program. The Guadalupe Fiber-optic Communication and Ticket Vending Upgrade Project is th e installation of fiber optic communications equipment along the existing Guadal upe line. This new technology will provide a higher capacity for data transmiss ion and compatibility with the new communications equipment along the light rail expansion lines. Description of the Rail Design and Construction Division Organizational Chart Jack Collins, Director Les Miller, Deputy Director Administration, 2 position Permits, U S A locating, Bill Kindricks, Manager Utilities Coordination, John Beebe, Manager, 11 positions Survey, Stan Heffner, Manager, 7 positions Tasman East/Capitol Project Design and Construction, Arch Walters, Manager, 5 po sitions. Vasona Project Design and Construction, Mark Robinson, Manager, 4 positions Transportation Design, Ken Ronsse, Supervising Transportation Engineer, 18 posit ions Construction Operations, Len Eaton, Manager construction Inspections, 37 positio ns System, Ramesh Dhingra, Manager, 7 positions 93 full time positions RAIL DESIGN AND CONSTRUCTION DIVISION BUDGET IN THOUSAND DOLLARS: Wages and Salaries: Fiscal Year 1999/2000 Actual 3,350; Fiscal Year 2000/2001 Ad opted Budget 5,055; Fiscal Year 2000/2001 Revised Budget 5,055; Fiscal Year 2001 /2002 Budget 6,629; Percent of change from Fiscal Year 2001 Revised is 31 point 1 percent. Benefits: Fiscal Year 1999/2000 Actual 1,701; Fiscal Year 2000/2001 Adopted Budg et 1,781; Fiscal Year 2000/2001 Revised Budget 1,781; Fiscal Year 2001/2002 Budg et 2,495; Percent of change from Fiscal Year 2001 Revised is 40 point 1 percent. Materials and Supplies: Fiscal Year 1999/2000 Actual 9; Fiscal Year 2000/2001 Ad opted Budget 24; Fiscal Year 2000/2001 Revised Budget 24; Fiscal Year 2001/2002 Budget 35; Percent of change from Fiscal Year 2001 Revised is 45 point 8 percent . Professional and Special Services: Fiscal Year 1999/2000 Actual 131; Fiscal Year 2000/2001 Adopted Budget 250; Fiscal Year 2000/2001 Revised Budget 263; Fiscal Year 2001/2002 Budget 270; Percent of change from Fiscal Year 2001 Revised is 2 point 7 percent. Other Services: Fiscal Year 1999/2000 Actual 24; Fiscal Year 2000/2001 Adopted B udget 68; Fiscal Year 2000/2001 Revised Budget 18; Fiscal Year 2001/2002 Budget 9; Percent of change from Fiscal Year 2001 Revised is minus 50 point 0 percent. Office Expense: Fiscal Year 1999/2000 Actual 20; Fiscal Year 2000/2001 Adopted B udget 38; Fiscal Year 2000/2001 Revised Budget 38; Fiscal Year 2001/2002 Budget 39; Percent of change from Fiscal Year 2001 Revised is 2 point 6 percent. Employee Related Expense: Fiscal Year 1999/2000 Actual 27; Fiscal Year 2000/2001 Adopted Budget 84; Fiscal Year 2000/2001 Revised Budget 84; Fiscal Year 2001/20 02 Budget 76; Percent of change from Fiscal Year 2001 Revised is minus 9 point 5 percent. Leases and Rents: Fiscal Year 1999/2000 Actual 22; Fiscal Year 2000/2001 Adopted

Budget 16; Fiscal Year 2000/2001 Revised Budget 16; Fiscal Year 2001/2002 Budge t 24; Percent of change from Fiscal Year 2001 Revised is 50 point 0 percent. Miscellaneous: Fiscal Year 1999/2000 Actual 3; Fiscal Year 2000/2001 Adopted Bud get 13; Fiscal Year 2000/2001 Revised Budget 13; Fiscal Year 2001/2002 Budget 6; Percent of change from Fiscal Year 2001 Revised is minus 53 point 8 percent. Total Expense: Fiscal Year 1999/2000 Actual 5,287; Fiscal Year 2000/2001 Adopted Budget 7,329; Fiscal Year 2000/2001 Revised Budget 7,292; Fiscal Year 2001/2002 Budget 9,583; Percent of change from Fiscal Year 2001 Revised is 31 point 4 per cent. Reimbursements: Fiscal Year 1999/2000 Actual minus 5,083; Fiscal Year 2000/2001 Adopted Budget minus 7,928; Fiscal Year 2000/2001 Revised Budget minus 9,146; Fi scal Year 2001/2002 Budget minus 8,827; Percent of change from Fiscal Year 2001 Revised is minus 3 point 5 percent. Net Total: Fiscal Year 1999/2000 Actual 204; Fiscal Year 2000/2001 Adopted Budge t minus 599; Fiscal Year 2000/2001 Revised Budget minus 1,854; Fiscal Year 2001/ 2002 Budget 756; Percent of change from Fiscal Year 2001 Revised is minus 140 po int 8 percent. Positions in whole number: Fiscal Year 1999/2000 Actual 63; Fiscal Year 2000/200 1 Adopted Budget 80; Fiscal Year 2000/2001 Revised Budget 81; Fiscal Year 2001/2 002 Budget 93; Percent of change from Fiscal Year 2001 Revised is 14 point 8 per cent. MAJOR BUDGETARY CHANGES Wages and Benefits The current rail expansion program (Tasman East, Capitol, and Vasona projects), along with the anticipated projects that will follow with the 2000 Measure A Pro gram, have placed new demands on the Rail Design and Construction Division. As a result, this budget reflects the need for added resources to meet these challen ges, primarily in the area of staffing. This budget proposes adding a utility co ordination position, which will reduce the need for consultant services. A techn ical position is required to support the increased demands of construction mater ial processing. The increased demands on engineering support requires the additi on of two Senior Transportation Engineers, one Associate Transportation Engineer , one Junior/Assistant Transportation Engineer, and one Junior/Assistant Systems Engineer. The related impacts upon survey, mapping, and computer-aided design ( C A D D) functions requires the addition of one Survey position and one Engineer ing Technician 2. The costs of these positions, estimated at 840,000 dollars, wi ll be reimbursed by the projects. With V T A currently embarked upon an ambitious Facility Improvement Program, wh ich includes the North Yard Reconstruction, Guadalupe Facility Expansion, Cerone Expansion, and Cerone OandR Improvements, the need for construction support has increased. This budget includes the addition of one Senior Construction Inspect or and three Construction Inspectors to replace consultant services for these pr ojects, resulting in overall project cost savings. Additional construction suppo rt is also needed for the 1996 M B T I P Caltrain projects and Bus Stop Improvem ent Program. This budget includes one additional Senior Construction Inspector a nd one Engineering Aide for contract administration and project support. The cos ts of these positions, estimated at 480,000 dollars, will be reimbursed by charg es to the actual projects. Activities within the Permits and U S A Locating Unit have tripled over the past five years. To accommodate the increased administrative activities, one Enginee ring Aide is requested, at an annual cost of 51,000 dollars.

After the Fiscal Year 2000/2001 Mid Year Revised Budget, there were some inter-d ivisional personnel transfers. The Rail Design and Construction division transfe rred one Office Management Coordinator and four Office Specialists to the Planni ng and Development Division; while Planning and Development Division transferred one Construction Inspector to the Rail Design and Construction division. The final Fiscal Year 2001/2002 Budget position count for this division will be 93, an increase of 12. Total wages and benefits is projected to be 9 point 1 mi llion dollars, an increase of 2 point 3 million dollars. However, this division will receive 9 million dollars in reimbursements, which includes all overhead al locations, for its staff's time charging to the projects. MARKETING AND CUSTOMER SERVICE DIVISION RESPONSIBILITIES The Marketing and Customer Service Division is responsible for the development a nd dissemination of customer information, promotion of bus and light rail servic e, communications to employees and the news media, and community outreach for V T A capital projects and major corridor studies. MAJOR PROGRAMS Customer Service is responsible for providing information on transit services an d transportation events to customers; delivering transit information materials; making contacts annually through senior centers and other outreach programs; imp lementing the Youth Outreach Program (Y O P) and "Class Pass" through area schoo ls; and, facilitating the resolution of customer concerns by working with the op erating divisions on customer issues, utilizing the on-line C A R E (Customers a re Resources to Excellence) system. Market Development is responsible for maintaining ongoing efforts to increase ri dership and revenue, including expansion of the Eco Pass Program. The Eco Pass program is an effort to enhance access to V T A by enabling employers to purchas e an annual pass for each employee. Other efforts include updating and maintain ing route schedules and system maps, publishing a monthly customer on-board news letter, and creating and distributing "car cards" for bus and light rail vehicle s. Market Development also oversees the bus and light rail advertising contract ; employer outreach; ongoing advertising; support materials for new services; th e sale of transit passes to convention groups; and, pass sales through distribut ion outlets. The group serves 95 V T A's website content lead. Public Information is responsible internal and external communications, particul arly news media contacts concerning V T A. It initiates and responds to news co ntacts; maintains updated information about V T A and its projects; publishes a biweekly communication from the General Manager (Monday Exchange) and an employe e newsletter (TransAction); and, coordinates V T A employee events such as Famil y Day. Community Outreach is responsible for ojects with a variety of outreach and ot only inform the community but also tudies and projects, and mitigate the supporting V T A's corridor and capital pr liaison efforts specifically designed to n to obtain input regarding transportation s impact of construction.

Description of the Marketing and Customer Service Division Organizational Chart Anne Catherine Vinickas, Director Administration, 2 positions Market Development, David Lopez, Manager, 16 positions Community Outreach, Paul J. Keener, Manager, 18 positions Public Information, J.Pilger, manager, 5 positions Customer Service, David Terrazas, Manager, 46 positions 88 full time positions.

MARKETING AND CUSTOMER SERVICE DIVISION BUDGET IN THOUSAND DOLLARS: Wages and Salaries: Fiscal Year 1999/2000 Actual 2,606; Fiscal Year 2000/2001 Ad opted Budget 3,637; Fiscal Year 2000/2001 Revised Budget 3,637; Fiscal Year 2001 /2002 Budget 4,130; Percent of change from Fiscal Year 2001 Revised is 13 point 6 percent. Benefits: Fiscal Year 1999/2000 Actual 1,607; Fiscal Year 2000/2001 Adopted Budg et 1,626; Fiscal Year 2000/2001 Revised Budget 1,626; Fiscal Year 2001/2002 Budg et 1,980; Percent of change from Fiscal Year 2001 Revised is 21 point 8 percent. Wages, Salaries and Benefits Savings: Fiscal Year 1999/2000 Actual 0; Fiscal Yea r 2000/2001 Adopted Budget minus 43; Fiscal Year 2000/2001 Revised Budget minus 43; Fiscal Year 2001/2002 Budget 0; Percent of change from Fiscal Year 2001 Revi sed is minus 100 percent. Materials and Supplies: Fiscal Year 1999/2000 Actual 9; Fiscal Year 2000/2001 Ad opted Budget 36; Fiscal Year 2000/2001 Revised Budget 1; Fiscal Year 2001/2002 B udget 1; Percent of change from Fiscal Year 2001 Revised is 0 point 0 percent. Professional and Special Services: Fiscal Year 1999/2000 Actual 852; Fiscal Year 2000/2001 Adopted Budget 723; Fiscal Year 2000/2001 Revised Budget 1,046; Fisca l Year 2001/2002 Budget 1,125; Percent of change from Fiscal Year 2001 Revised i s 7 point 6 percent. Other Services: Fiscal Year 1999/2000 Actual 1,808; Fiscal Year 2000/2001 Adopte d Budget 1,362; Fiscal Year 2000/2001 Revised Budget 1,924; Fiscal Year 2001/200 2 Budget 1,744; Percent of change from Fiscal Year 2001 Revised is minus 9 point 4 percent. Data Processing: Fiscal Year 1999/2000 Actual 11; Fiscal Year 2000/2001 Adopted Budget 6; Fiscal Year 2000/2001 Revised Budget 12; Fiscal Year 2001/2002 Budget 8; Percent of change from Fiscal Year 2001 Revised is minus 33 point 3 percent. Office Expense: Fiscal Year 1999/2000 Actual 67; Fiscal Year 2000/2001 Adopted B udget 66; Fiscal Year 2000/2001 Revised Budget 50; Fiscal Year 2001/2002 Budget 57; Percent of change from Fiscal Year 2001 Revised is 14 point 0 percent. Communications: Fiscal Year 1999/2000 Actual 16; Fiscal Year 2000/2001 Adopted B udget 93; Fiscal Year 2000/2001 Revised Budget 0; Fiscal Year 2001/2002 Budget 0 ; Percent of change from Fiscal Year 2001 Revised is not applicable. Employee Related Expense: Fiscal Year 1999/2000 Actual 60; Fiscal Year 2000/2001 Adopted Budget 71; Fiscal Year 2000/2001 Revised Budget 100; Fiscal Year 2001/2 002 Budget 51; Percent of change from Fiscal Year 2001 Revised is minus 49 point 0 percent. Leases and Rents: Fiscal Year 1999/2000 Actual 72; Fiscal Year 2000/2001 Adopted Budget 75; Fiscal Year 2000/2001 Revised Budget 93; Fiscal Year 2001/2002 Budge t 80; Percent of change from Fiscal Year 2001 Revised is minus 14 point 0 percen t. Miscellaneous: Fiscal Year 1999/2000 Actual 17; Fiscal Year 2000/2001 Adopted Bu dget 555; Fiscal Year 2000/2001 Revised Budget 112; Fiscal Year 2001/2002 Budget 366; Percent of change from Fiscal Year 2001 Revised is 226 point 8 percent. Other Expense: Fiscal Year 1999/2000 Actual 22; Fiscal Year 2000/2001 Adopted Bu dget 25; Fiscal Year 2000/2001 Revised Budget 0; Fiscal Year 2001/2002 Budget 0; Percent of change from Fiscal Year 2001 Revised is not applicable.

Total Expense: Fiscal Year 1999/2000 Actual 7,147; Fiscal Year 2000/2001 Adopted Budget 8,232; Fiscal Year 2000/2001 Revised Budget 8,558; Fiscal Year 2001/2002 Budget 9,542; Percent of change from Fiscal Year 2001 Revised is 11 point 5 per cent. Reimbursements: Fiscal Year 1999/2000 Actual minus 126; Fiscal Year 2000/2001 Ad opted Budget minus 712; Fiscal Year 2000/2001 Revised Budget minus 712; Fiscal Y ear 2001/2002 Budget minus 1,016; Percent of change from Fiscal Year 2001 Revise d is 42 point 7 percent. Net Total: Fiscal Year 1999/2000 Actual 7,021; Fiscal Year 2000/2001 Adopted Bud get 7,520; Fiscal Year 2000/2001 Revised Budget 7,846; Fiscal Year 2001/2002 Bud get 8,526; Percent of change from Fiscal Year 2001 Revised is 8 point 7 percent. Positions in whole number: Fiscal Year 1999/2000 Actual 72; Fiscal Year 2000/200 1 Adopted Budget 81; Fiscal Year 2000/2001 Revised Budget 82; Fiscal Year 2001/2 002 Budget 88; Percent of change from Fiscal Year 2001 Revised is 7 point 3 perc ent. MAJOR BUDGETARY CHANGES Wages and Benefits In order to adequately staff V T A's community outreach activities in support of the overall capital program, Marketing and Customer Service added seven positio ns by the end of FY 2000-01. These new positions include five Public Communicati ons Specialists and two Office Specialists, and they will be partially reimburse d by capital projects. The net cost of these positions is approximately 110,000 dollars in Fiscal Year 2001/2002. One vacant Senior Marketing Representative pos ition was deleted after the development of the Fiscal Year 2000/2001 Revised Bud get. Other Services This budget also includes an increase of 154,000 dollars for enhanced advertisin g efforts to adequately promote the full range of V T A's programs and services. OTHER RESPONSIBILITIES V T A groups all the expenses that are beyond the control of an individual divis ion, difficult to be allocated meaningfully to any division or unrelated to actu al operations into a non-departmental division. The rationale is that since the divisions have no control over these expenses, they should not be held responsib le or accountable for them. The typical expenses are general liability adjustmen ts, debt services, and prior year adjustments. OTHER BUDGET IN THOUSAND DOLLARS: Benefits: Fiscal Year 1999/2000 Actual 11,432; Fiscal Year 2000/2001 Adopted Bud get 65; Fiscal Year 2000/2001 Revised Budget 65; Fiscal Year 2001/2002 Budget 74 ; Percent of change from Fiscal Year 2001 Revised is 13 point 8 percent. Wages, Salaries and Benefits Savings: Fiscal Year 1999/2000 Actual 0; Fiscal Yea r 2000/2001 Adopted Budget 0; Fiscal Year 2000/2001 Revised Budget 0; Fiscal Yea r 2001/2002 Budget minus 2,996; Percent of change from Fiscal Year 2001 Revised is not applicable. Professional and Special Services: Fiscal Year 1999/2000 Actual 48; Fiscal Year 2000/2001 Adopted Budget 0; Fiscal Year 2000/2001 Revised Budget 0; Fiscal Year 2001/2002 Budget 0; Percent of change from Fiscal Year 2001 Revised is not appli cable.

Insurance: Fiscal Year 1999/2000 Actual minus 3,333; Fiscal Year 2000/2001 Adopt ed Budget minus 3,300; Fiscal Year 2000/2001 Revised Budget minus 3,300; Fiscal Year 2001/2002 Budget minus 2,000; Percent of change from Fiscal Year 2001 Revis ed is minus 39 point 4 percent. Miscellaneous: Fiscal Year 1999/2000 Actual minus 74; Fiscal Year 2000/2001 Adop ted Budget 0; Fiscal Year 2000/2001 Revised Budget 0; Fiscal Year 2001/2002 Budg et 0; Percent of change from Fiscal Year 2001 Revised is not applicable. Other Expense: Fiscal Year 1999/2000 Actual 283; Fiscal Year 2000/2001 Adopted B udget 0; Fiscal Year 2000/2001 Revised Budget 0; Fiscal Year 2001/2002 Budget 0; Percent of change from Fiscal Year 2001 Revised is not applicable. Total Expense: Fiscal Year 1999/2000 Actual 8,356; Fiscal Year 2000/2001 Adopted Budget minus 3,235; Fiscal Year 2000/2001 Revised Budget minus 3,235; Fiscal Ye ar 2001/2002 Budget minus 4,922; Percent of change from Fiscal Year 2001 Revised is 52 point 1 percent. Reimbursements: Fiscal Year 1999/2000 Actual 845; Fiscal Year 2000/2001 Adopted Budget 2,934; Fiscal Year 2000/2001 Revised Budget 2,934; Fiscal Year 2001/2002 Budget 3,606; Percent of change from Fiscal Year 2001 Revised is 22 point 9 perc ent. Net Total: Fiscal Year 1999/2000 Actual 9,201; Fiscal Year 2000/2001 Adopted Bud get minus 301; Fiscal Year 2000/2001 Revised Budget minus 301; Fiscal Year 2001/ 2002 Budget minus 1,316; Percent of change from Fiscal Year 2001 Revised is 337 point 2 percent. MAJOR BUDGETARY CHANGES Wages, Salaries and Benefits Savings In order to increase our savings forecast to 3 point 5 percent of the amount bud geted for wages, salaries and benefits, we added 2,996,000 dollars of savings in the non-departmental cost center. Liability Self Insurance An actuarial review of the liability self-insurance program is prepared annually . This program has excess reserves. V T A plans to reduce the reserve by 2 milli on dollars in Fiscal Year 2001/2002. As a result, the same amount of expense fo r liability insurance will be reduced. CONGESTION MANAGEMENT AND HIGHWAY PROGRAMS DIVISION The Congestion Management and Highway Programs Division is comprised of two dist inct functional sections: the Congestion Management Program (C M P) and the High way Program. This division is responsible for development of the Valley Transpo rtation Plan 2020 (V T P 2020), the long range transportation plan for the count y, and for preparing and implementing the state mandated Congestion Management P rogram. It is also responsible for the programming of discretionary state and f ederal funds, for monitoring projects with funds programmed by the V T A Board o f Directors, and for serving as the program manager for certain countywide grant funds. The division also is responsible for managing the development, design a nd implementation of the Highway Program, which includes the eleven 1996 Measure B highway projects and other highway projects approved by the V T A Board of Di rectors. Description of the Congestion Management and Highways Programs Division Organiza tional Chart Michael P. Evanhoe, Director Administration, 1 position

Policy and Administration, Stephen Flynn, Manager, 3 positions Congestion Management Program, Carolyn Gonot, Manager, 10 positions Programming and Highway Administration, John Ristow, Manager, 10 positions Highway Engineering, Jeff Funk, Deputy Director, 3 positions (Highway Program Management:Design and Construction Consultants, Valley Highway Associ.(VHA), 48 positions) 28 full time positions. CONGESTION MANAGEMENT PROGRAM (C M P) On December 1, 1994, V T A was designated as the Congestion Management Agency (C M A) for Santa Clara County through a joint powers agreement entered into by th e fifteen cities and the County of Santa Clara. The functions previously perfor med by the Congestion Management Agency are now performed by C M P staff within V T A. Policy and administrative decisions that affect the Congestion Managemen t Program (C M P) are made by V T A's Board of Directors. The Board is advised on C M P activities by four primary advisory committees: the Policy Advisory Com mittee (P A C), the Technical Advisory Committee (T A C), the Citizens Advisory Committee (C A C), and the Bicycle Advisory Committee (B A C). RESPONSIBILITIES The Congestion Management Program is responsible for preparing and implementing the county's statutorily mandated Congestion Management Program. The C M P, pr epared every two years, sets performance standards for roadways, public transit, and other modes of transportation, and shows how local jurisdictions will meet those standards through a Capital Improvement Program, land use strategies and o ther actions designed to reduce congestion and improve air quality. Adoption of a C M P is necessary to qualify for certain transportation funds made available through the state gas tax increase authorized in 1990. MAJOR PROGRAMS Congestion Management Program In odd-numbered calendar years, an updated C M P is prepared. Every year, the e lements of the C M P are monitored and C M P staff prepares a monitoring and con formance report. Under development is a policy to link local land use decisionmaking to transportation funding through the Capital Improvement Program, which is a ten-year program of capital funding designed to improve the transportation system and air quality in Santa Clara County. Valley Transportation Plan (V T P 2020) V T P 2020 is the countywide plan for transportation investment and service deci sions for the next twenty years. It is the long-range multimodal transportation plan that guides overall planning and programming efforts within Santa Clara Co unty. The V T P 2020 incorporates the following strategies: Coordinating land use and transportation decision-making. Determining how transportation funds should be spent. Upgrading and maintaining existing infrastructure. Implementing new technologies for managing transportation systems. Incorporating principles of environmental preservation into transportation decis ions. Grant Programming The Congestion Management Program is responsible for fund programming and/or ove rsight of the following Federal, State, regional and local grant programs: Federal Federal Surface Transportation Program/Congestion Mitigation - Air Quality Impro vement Program (S T P/C M A Q): S T P funds are used to address problems caused by urban and suburban congestion by funding improvement projects across all tran

sportation modes. C M A Q funds are to be used to implement the transportation provisions of the 1990 Federal Clean Air Act. The S T P and C M A Q funding pro grams were wrapped into the Federal Intermodal Surface Transportation Efficiency Act of 1991 (I S T E A) and continued when Congress enacted the Transportation Equity Act for the twenty first Century (T E A 21) in mid 1997. Under both I S T E A and the current T E A 21 legislation, V T A determines the countywide prio rities for these funds, subject to final approval of the Metropolitan Transporta tion Commission (M T C). Transportation Enhancement (T E): T E A 21 provides for a 10percent set-aside of each state's S T P allocation to be used for "Transportation Enhancement" (T E) above and beyond normal capital improvements which fit within the 12 categories described in the T E A 21 legislation. Within the M T C region, the responsibil ity for T E program development has been divided between M T C and the C M A's. M T C programs 50percent of the available T E funding and the C M A's develop p rograms for the remaining 50percent subject to MTC approval. V T A, acting in i ts capacity as the C M A for Santa Clara County, programs the local share. State Regional Improvement Program (R I P): Senate Bill 45 (S B 45), which was signed into law at the end of the 1997 legislative session, consolidated several state transportation funding programs and directed 75percent of the funds from the Sta te Highway Account (S H A) into the Regional Improvement Program (R I P). Each county receives a "County Share". V T A determines the countywide priorities fo r these funds subject to final approval by M T C and the California Transportati on Commission (C T C) via the State Transportation Improvement Program (S T I P) process. Local Transportation Fund for Clean Air Program Manager Fund (T F C A 40 percent): In 1991, state statute authorized the Bay Area Air Quality Management District (B A A Q M D) to increase vehicle registration fees by up to 4 dollars per vehicle t o implement certain transportation control measures contained in the District's adopted Clean Air Plan. Forty percent (40 percent) of these funds are distribut ed to each county based on a proportional share of paid vehicle registrations. These funds are allocated and administered by a program manager selected within each county. V T A's Congestion Management Program is the program manager for t he T F C A 40percent Funds for Santa Clara County. Transportation Development Act Article 3: The California State Legislature enact ed the Transportation Development Act (T D A) in 1972. Article 3 of this act pr ovides for the return of a portion of the sales tax receipts in each county to f und bicycle and pedestrian improvements. M T C administers the program Bay Area wide, while V T A develops annual countywide program priorities. Programmed Project Monitoring and Assistance With the enactment in 1999 of Senate Bill 45 (S B 45), the State Transportation Improvement Program (STIP) now contains a timely use of funds provision that req uires project sponsors to deliver the project on time or risk loss of the grant funding. This legislation also increased the responsibility of local agencies, such as V T A, to not only program transportation funds but also to monitor proj ect progress and potentially provide assistance to ensure timely completion. Be cause of the substantial fiscal impact on the countywide Capital Improvement Pro gram due to delayed project construction, C M & H P staff is providing active ov ersight of the delivery of C I P projects. This oversight includes a significan t level of direct involvement by division staff, utilizing consultant engineerin g assistance, in several large, high profile state highway projects managed by C altrans, including the Route 880/Dixon Landing Road interchange, the Route 237/8 80 interchange, and Route 87 near San Jose International Airport.

C M & H P staff also provides to the Board of Directors and Advisory Committees the Programmed Projects Quarterly Monitoring Report, which tracks the progress o f projects funded through programming actions by the Board of Directors. It als o identifies projects at risk of losing funds due to delivery difficulties. Pavement Management Program The Measure B Transportation Improvement Program and other sources provide funds to local jurisdictions for street repair and other transportation projects. Ad ministration and distribution of these funds is managed by the Pavement Manageme nt Program and is primarily based on a formula derived from the 1990 Proposition 111, which increased the tax on gasoline and subvened the receipts to local jur isdictions. Over the life of the 1996 Measure B, local jurisdictions will recei ve a combined total of approximately 90 million dollars countywide. Additionall y, 37 million dollars in Federal funds previously secured for similar functions will also be administered and distributed through the Pavement Management Progra m. Bicycle Planning Program The 20 year Countywide Bicycle Plan was adopted by the Board of Directors in Oct ober 2000. It includes three prioritized tiers of capital bicycle projects. Th e ten year Bicycle Expenditure Program included in the Countywide Bicycle Plan i s the funding mechanism for the Tier 1 projects. Over 31 million dollars has been approved for the Bicycle Expenditure Program, c onsisting of 12 million dollars from the Measure B Transportation Improvement Pr ogram and a total of 19 million dollars from the Transportation Fund for Clean A ir, Transportation Development Act Article 3 Funds, and federal Transportation E nhancement funds. This program administers and distributes funds to Member Agen cies to implement and construct the projects. HIGHWAY PROGRAM The Highway Program section is responsible for implementing all Board of Directo r approved highway improvement projects. RESPONSIBILITIES The Highway Program is responsible for developing and managing all phases of imp lementation for all Board of Director approved highway improvement projects, inc luding the twelve current projects listed below. These highway projects are man aged by Congestion Management and Highway Programs Division staff in partnership with Caltrans, Santa Clara County staff and other jurisdictions. Management is accomplished using a combination of full-time V T A staff and consultants that provide direct project implementation support. The major phases to implement each highway project are: Project Conceptual Analysis. Project study report. Project report. Environmental documentation and approval. Plans, Specifications and Estimates (PSandE). Right-of-way certification and utility relocation. Advertise, bid and award construction contracts. Construction of the project. MAJOR PROGRAMS The Highway Programs section is currently responsible for twelve highway project s, consisting of eleven funded by the 1996 Measure B Transportation Improvement Program and one by the project sponsor (see Section V - Capital Budget for a det ailed explanation of each current highway project).

The eleven highway projects funded by the 1996 Measure B Transportation Improvem ent Program are: Route 880 widening from 4 to 6 lanes from Montague Expressway to U S 101 and an auxiliary lane on southbound I 880 from U S 101 to the North First Street exit ramp. Route 85/87 direct connector ramps for southbound 85 to northbound 87 and southb ound 87 to northbound 85 movements. Route 101 widening from a 4 lane to a 6 lane plus two H O V (carpool) lanes with in the existing median of the freeway between Bernal Road and Cochrane Avenue. Route 85/101 interchange in Mountain View. Route 237/880 interchange in Milpitas (Stage C) H O V lane direct connector ramp s and braided exit ramp to Tasman Drive interchange . Route 87 H O V lanes from I 280 to Route 85. Route 87 HOV lanes from Julian Street to I 280. Route 85/101 interchange in South San Jose. Route 17 improvements from I 280 to Lark Avenue in the Town of Los Gatos. Route 152 safety improvements. Route 85 noise mitigation. The one current highway project funded by the project sponsor is I 880/Coleman A venue interchange in San Jose, which is sponsored by the City of San Jose. CONGESTION MANAGEMENT AND HIGHWAY PROGRAMS DIVISION BUDGET IN THOUSAND DOLLARS: Federal Operating Grants: Fiscal Year 1999/2000 Actual 1,042; Fiscal Year 2000/2 001 Adopted Budget 885; Fiscal Year 2000/2001 Revised Budget 885; Fiscal Year 20 01/2002 Budget 500; Percent of change from Fiscal Year 2001 Revised is minus 43 point 5 percent. State Operating Grants: Fiscal Year 1999/2000 Actual 116; Fiscal Year 2000/2001 Adopted Budget 218; Fiscal Year 2000/2001 Revised Budget 818; Fiscal Year 2001/2 002 Budget 224; Percent of change from Fiscal Year 2001 Revised is minus 72 poin t 6 percent. Investment Earnings: Fiscal Year 1999/2000 Actual 1; Fiscal Year 2000/2001 Adopt ed Budget 0; Fiscal Year 2000/2001 Revised Budget 0; Fiscal Year 2001/2002 Budge t 0; Percent of change from Fiscal Year 2001 Revised is not applicable. Other Income: Fiscal Year 1999/2000 Actual 1,632; Fiscal Year 2000/2001 Adopted Budget 1,290; Fiscal Year 2000/2001 Revised Budget 1,290; Fiscal Year 2001/2002 Budget 3,505; Percent of change from Fiscal Year 2001 Revised is 171 point 7 per cent. Total Revenues: Fiscal Year 1999/2000 Actual 2791; Fiscal Year 2000/2001 Adopted Budget 2,393; Fiscal Year 2000/2001 Revised Budget 2,993; Fiscal Year 2001/2002 Budget 4,229; Percent of change from Fiscal Year 2001 Revised is 41 point 3 per cent. Wages and Salaries: Fiscal Year 1999/2000 Actual 934; Fiscal Year 2000/2001 Adop ted Budget 1,515; Fiscal Year 2000/2001 Revised Budget 1,217; Fiscal Year 2001/2 002 Budget 2,281; Percent of change from Fiscal Year 2001 Revised is 87 point 4 percent. Benefits: Fiscal Year 1999/2000 Actual 462; Fiscal Year 2000/2001 Adopted Budget 545; Fiscal Year 2000/2001 Revised Budget 378; Fiscal Year 2001/2002 Budget 774 ; Percent of change from Fiscal Year 2001 Revised is 104 point 8 percent. Materials and Supplies: Fiscal Year 1999/2000 Actual 0; Fiscal Year 2000/2001 Ad

opted Budget 6; Fiscal Year 2000/2001 Revised Budget 6; Fiscal Year 2001/2002 Bu dget 3; Percent of change from Fiscal Year 2001 Revised is minus 50 percent. Security: Fiscal Year 1999/2000 Actual 0; Fiscal Year 2000/2001 Adopted Budget 4 ; Fiscal Year 2000/2001 Revised Budget 4; Fiscal Year 2001/2002 Budget 0; Percen t of change from Fiscal Year 2001 Revised is minus 100 percent. Professional and Special Services: Fiscal Year 1999/2000 Actual 475; Fiscal Year 2000/2001 Adopted Budget 160; Fiscal Year 2000/2001 Revised Budget 1275; Fiscal Year 2001/2002 Budget 687; Percent of change from Fiscal Year 2001 Revised is m inus 46 point 1 percent. Other Services: Fiscal Year 1999/2000 Actual 427; Fiscal Year 2000/2001 Adopted Budget 973; Fiscal Year 2000/2001 Revised Budget 973; Fiscal Year 2001/2002 Budg et 1,516; Percent of change from Fiscal Year 2001 Revised is 55 point 8 percent. Data Processing: Fiscal Year 1999/2000 Actual 0; Fiscal Year 2000/2001 Adopted B udget 48; Fiscal Year 2000/2001 Revised Budget 48; Fiscal Year 2001/2002 Budget 36; Percent of change from Fiscal Year 2001 Revised is minus 25 percent. Office Expense: Fiscal Year 1999/2000 Actual 18; Fiscal Year 2000/2001 Adopted B udget 12; Fiscal Year 2000/2001 Revised Budget 12; Fiscal Year 2001/2002 Budget 21; Percent of change from Fiscal Year 2001 Revised is 75 percent. Communications: Fiscal Year 1999/2000 Actual 0; Fiscal Year 2000/2001 Adopted Bu dget 16; Fiscal Year 2000/2001 Revised Budget 16; Fiscal Year 2001/2002 Budget 1 2; Percent of change from Fiscal Year 2001 Revised is minus 25 percent. Employee Related Expense: Fiscal Year 1999/2000 Actual 32; Fiscal Year 2000/2001 Adopted Budget 46; Fiscal Year 2000/2001 Revised Budget 46; Fiscal Year 2001/20 02 Budget 41; Percent of change from Fiscal Year 2001 Revised is minus 10 point 9 percent. Leases and Rents: Fiscal Year 1999/2000 Actual 74; Fiscal Year 2000/2001 Adopted Budget 164; Fiscal Year 2000/2001 Revised Budget 164; Fiscal Year 2001/2002 Bud get 103; Percent of change from Fiscal Year 2001 Revised is minus 37 point 2 per cent. Contingency: Fiscal Year 1999/2000 Actual 0; Fiscal Year 2000/2001 Adopted Budge t 113; Fiscal Year 2000/2001 Revised Budget 113; Fiscal Year 2001/2002 Budget 0; Percent of change from Fiscal Year 2001 Revised is minus 100 percent. Miscellaneous: Fiscal Year 1999/2000 Actual 572; Fiscal Year 2000/2001 Adopted B udget 34; Fiscal Year 2000/2001 Revised Budget 34; Fiscal Year 2001/2002 Budget 129; Percent of change from Fiscal Year 2001 Revised is 279 point 4 percent. Reimbursements: Fiscal Year 1999/2000 Actual 0; Fiscal Year 2000/2001 Adopted Bu dget minus 748; Fiscal Year 2000/2001 Revised Budget minus 748; Fiscal Year 2001 /2002 Budget minus 1,512; Percent of change from Fiscal Year 2001 Revised is 102 point 1 percent. Total Expense: Fiscal Year 1999/2000 Actual 2,994; Fiscal Year 2000/2001 Adopted Budget 2,888; Fiscal Year 2000/2001 Revised Budget 3,538; Fiscal Year 2001/2002 Budget 4,091; Percent of change from Fiscal Year 2001 Revised is 15 point 6 per cent. Surplus/(Deficit) to Reserves: Fiscal Year 1999/2000 Actual -203; Fiscal Year 20 00/2001 Adopted Budget minus 495; Fiscal Year 2000/2001 Revised Budget minus 545 ; Fiscal Year 2001/2002 Budget 138; Percent of change from Fiscal Year 2001 Revi sed is minus 125 point 3 percent.

Beginning Reserves: Fiscal Year 1999/2000 Actual 1,533; Fiscal Year 2000/2001 Ad opted Budget 1,509; Fiscal Year 2000/2001 Revised Budget 1,330; Fiscal Year 2001 /2002 Budget 785; Percent of change from Fiscal Year 2001 Revised is minus 41 pe rcent. Ending Reserves: Fiscal Year 1999/2000 Actual 1,330; Fiscal Year 2000/2001 Adopt ed Budget 1,014; Fiscal Year 2000/2001 Revised Budget 785; Fiscal Year 2001/2002 Budget 923; Percent of change from Fiscal Year 2001 Revised is 17 point 6 perce nt. Positions: Fiscal Year 1999/2000 Actual 17; Fiscal Year 2000/2001 Adopted Budget 21; Fiscal Year 2000/2001 Revised Budget 24; Fiscal Year 2001/2002 Budget 28; P ercent of change from Fiscal Year 2001 Revised is 16 point 7 percent. MAJOR BUDGETARY CHANGES During Fiscal Year 2000/01, three staff positions were added to address increase d responsibilities and activities of the division, which are reflected in this b udget: one Senior Transportation Planner due to expanded modeling activities, in cluding the Silicon Valley Rapid Transit Corridor (BART to Santa Clara County) p roject; one Senior Management Analyst to provide oversight of increased Highway Program staff and responsibilities; and one Management Analyst to represent the division and provide input to the Capital Projects Group as it develops common b usiness practices, guidelines, and reporting procedures for V T A capital projec ts. For Fiscal Year 2001/02, four additional positions are being added due to the ra pidly increasing responsibilities and activities of the division: one Associate Transportation Engineer to provide additional traffic engineering and land devel opment review services and the regional coordination of Intelligent Transportati on Systems (I T S); two Transportation Planners, one for increased grant program ming responsibilities resulting from funding transfers; and one for the expanded Proactive C M P process, regional coordination, the Countywide Deficiency Plan, etc.; and one Office Specialist 2 to provide administrative support for the rec ently increased quantity of professional staff. Because the Associate Transport ation Engineer provides services to the 1996 Measure B Transportation Improvemen t Program, which reimburses the division for the cost, the net additional cost o f the four positions is approximately 223,000 dollars. The new or expanded programs or activities for Fiscal Year 2001/02 are: The Valley Transportation Plan 2020 (V T P 2020) Update and Implementation Plan V T P 2020 identifies transportation improvements for transit, roadway, bicycle, and pedestrians, and a financial plan for implementing the related projects. V T P 2020 was adopted by the Board of Directors in December 2000 and will be upd ated every two years, with the first update to begin at the end of 2001. Additionally, in November 2000 the Santa Clara County voters approved Measure A, a 30 year 1/2 cent sales tax dedicated to transit, which begins in 2006. This sales tax, as well as the adoption of the V T P 2020 expenditure plan, provides for an 8 billion dollars package of transportation improvements to be implemente d over the next 30 years. The V T P 2020 Implementation Plan will establish the capital improvement program project selection process and establish a ten year implementation schedule for the first phase of the Capital Improvement Program ( C I P). Over the next year staff will be working with the Member Agencies to de velop policies and procedures for identifying projects for inclusion in the tenyear C I P. The Best Practices Land Use Program will also be incorporated into the Implementation program. The Implementation Plan will be updated every other year to reflect the V T P 2020 update.

The additional Fiscal Year 2001/02 cost of preparing the V T P 2020 Update and t he Implementation Plan is $135,000, which is primarily for consultant services. Development of the 2001 Congestion Management Program V T A, acting as the Congestion Management Agency, is required to prepare and ad opt a Congestion Management Program (C M P) biennially. The update of the 2001 C M P will begin during Fiscal Year 2001/02. The most significant change to the 2001 C M P will be revisions to the Land Use Impact Element to better integrate land use and transportation planning. Because preparation of the 2001 Congesti on Management Program will be accomplished by current staff, there is no additio nal cost for Fiscal Year 2001/02. Santa Clara Valley Deficiency Plan To relieve Member Agencies of the requirement to develop a deficiency plan each time a deficiency occurs on the CMP roadway system within their boundaries, the C M P proposes to prepare a deficiency plan that covers the entire county. With out a deficiency plan, the local jurisdiction risks non-conformance with the C M P and the potential loss of 1990 Proposition 111 State Gas Tax funds. The resu lts of the Deficiency Plan will be incorporated into the V T P 2020 update. The additional Fiscal Year 2001/02 cost of preparing the countywide Deficiency Plan is 150,000 dollars, which is primarily for consultant services. Programmed Projects Monitoring and Assistance With the enactment in 1999 of Senate Bill 45 (S B 45), the State Transportation Improvement Program (STIP) now contains a timely use of funds provision that req uires project sponsors to deliver the project on time or risk loss of the grant funding. This legislation also increased the responsibility of local agencies, such as V T A, to not only program transportation funds but also to monitor proj ect progress and potentially provide assistance to ensure timely completion. Be cause of the substantial fiscal impact on the countywide Capital Improvement Pro gram due to delayed project construction, C M & H P staff is providing active ov ersight of the delivery of C I P projects. This oversight includes a significan t level of direct involvement by division staff, utilizing consultant engineerin g assistance, in several large, high profile state highway projects managed by C altrans, including the Route 880/Dixon Landing Road interchange, the Route 237/8 80 interchange, and Route 87 near San Jose International Airport. C M P staff w ill also update and refine the recently developed Programmed Projects Quarterly Monitoring Report for review by Advisory and Standing committees and transmittal to the Board of Directors. The Fiscal Year 2001/02 total estimated cost for this program is 609,000 dollars, which is funded entirely from the Local Program Reserve. Transportation Gateway and Intra-County Corridor Studies These studies provide a systematic approach at identifying transportation soluti ons in gateway travel into Santa Clara County and improvements to the county's e xpressway system. During Fiscal Year 2001/02, staff will initiate two Gateway s tudies: the I-680/I-880 Cross-Connector Study and the South County Gateway St udy, which includes Routes 25, 101, 152 and 156, and will commence the expresswa y studies this year with beginning the Lawrence Expressway Improvement Study. Th e estimated combined FY 2001-02 cost for these studies is 400,000 dollars, which is funded entirely from the Local Program Reserve. Due to the combination of increased responsibilities, tasks and services, rising costs, and Member Agency fees not being increased since C M P inception in 1990 , it was necessary to request an increase to Member Fees and V T A's Managing Ag ency contribution. The Policy Advisory Committee (PAC), which is comprised of a n elected representative from each Member Agencies, recommended and the Board of Directors approved the following phased implementation for the increase: 28 per cent for Fiscal Year 2001/02; 28 percent for Fiscal Year 2002/03; and approximat ely 7 percent annually for the next four years. However, the proposed 7 percent

increases will be evaluated and adjusted annually with each budget. This incre ase is necessary to complete current and proposed programs and continue providin g the products and services requested by the Member Agencies. It is also necess ary to maintain adequate Reserves. The C M P currently provides services for the Highway Program and is reimbursed accordingly. Additionally, beginning in Fiscal Year 2001/02 the division will p rovide services to V T A Transit, including travel demand modeling and ridership forecasting, mapping services, development review coordination, G I S database maintenance, etc. The C M P will be reimbursed for these services and thus 565, 000 dollars of reimbursement has been included in the Fiscal Year 2001/02 budget . For future years, this amount will be reviewed annually and adjusted to refle ct the services projected to be provided during that specific year. Santa Clara Valley Transportation Authority Congestion Management Program Recommended Fiscal Year 2001/2002 Member Assessments In whole dollars County of Santa Clara, 179,167 Campbell, 33,312 Cupertino, 51,181 Gilroy, 24,899 Los Altos, 16,433 Los Altos Hills, 4,380 Los Gatos, 22,679 Milpitas, 50,759 Monte Sereno, 1,316 Morgan Hill, 16,548 Mountain View, 82,430 Palo Alto, 93,278 San Jose, 516,894 Santa Clara, 136,530 Saratoga, 14,299 Sunnyvale, 163,920 Subtotal, 1,408,025 V T A - Managing Agency Contribution, 179,166 TOTAL, 1,587,191 C M P expenditures and funding will be reviewed annually during the budget devel opment process and member agency fees may be adjusted as necessary. CAPITAL BUDGET The Fiscal Year 2001/2002 Recommended Capital Budget represents a ramp-up in cap ital activities, following three years of relatively leveled-off spending. In ad dition to significant investment in infrastructure rehabilitation and modernizat ion to assure that V T A assets are in a good state of repair, this budget also reflects an abiding commitment to service expansion and enhancement. This budget initiates 33 new projects and augments 5 previously approved project s, for a total new commitment of 137,291,000 dollars. Of this investment, 70 pe rcent (94,812,000 dollars) occurs in the areas of new bus acquisition, and passe nger facilities improvements. In total, 25 percent of the new and augmented Rec ommended Capital Program budget (33,805,000 dollars) will be reimbursed from out side sources. There are 218 unfinished projects (excluding the 1996 Measure B Tr ansportation Improvement Program) being carried over from prior capital budgets. In Fiscal Year 2001/02, the annual debt service expense budget, 27,537,000 doll ars, has been reclassified as a capital project. We believe this treatment is mo re appropriate as we incurred debt solely for funding capital projects.

SUMMARY TABLE FOR BUDGET CHANGES IN NEW CAPITAL PROJECTS IN THOUSAND DOLLARS: Fiscal Year 2001/02: New 61,281; Augmented 76,010; Total 137,291. Fiscal Year 2000/01 Revised: New 59,653; Augmented 44,115; Total 103,768. Increase or Decrease: New minus 1,628; Augmented 31,895; Total 33,523. Percent of Increase or Decrease: New 2 point 7 percent; Augmented 72 point 3 pe rcent; Total 32 point 3 percent. SUMMARY TABLE FOR BUDGET CHANGES IN THE NUMBER OF NEW CAPITAL PROJECTS IN WHOLE NUMBER: Fiscal Year 2001/02: New 33; Augmented 5; Total 38. Fiscal Year 2000/01 Revised: New 38; Augmented 24; Total 62. Increase or Decrease: New minus 5; Augmented minus 19; Total minus 24 Percent of Increase or Decrease: New minus 13 point 2 percent; Augmented minus 79 point 2 percent; Total minus 38 point 7 percent. MAJOR CAPITAL PROGRAM HIGHLIGHTS: Expansion to a 750 Bus Fleet: V T P 2020's Bus Fleet Expansion and Replacement P rogram has established a goal of expanding the bus fleet to a size of 750 buses. This budget includes additional funds for both bus fleet expansion and the exp ansion of facilities at the Cerone Complex to accommodate and maintain a 750 bus fleet. Light Rail Vehicle (L R V) Fleet Conversion to Low-Floor Vehicles: V T A has com mitted to improving accessibility by converting the LRV Fleet to low-floor vehic les, with the Board having approved funds for a 100 low-floor LRV fleet. This bu dget adds funds to retrofit all existing high floor vehicle platforms along the Guadalupe Corridor line to accommodate the new low-floor vehicles. Low and Zero Emission Buses: V T A is committed to reducing particulate emission s from our bus fleet. At its meeting in December 2000, the V T A Board of Direct ors selected the low-emission diesel fuel path over the alternative fuel path (c ompressed natural gas). With this decision, the Fiscal Year 2001/2002 budget fun ds the acquisition of low-emission diesel buses, as well as funds to retrofit ex isting diesel bus engines with devices to reduce emissions. This budget also all ocates funds to expand our Zero Emission Bus (Z E B) Demonstration Project, whic h is in preparation for full compliance with the California Air Resources Board' s regulation for buying zero emission buses by the end of the decade. As a resul t, V T A will maintain two fueling systems concurrently in the near future, unti l all of the low-emission diesel buses are phased out. SANTA CLARA VALLEY TRANSPORTATION AUTHORITY CAPITAL BUDGET IN THOUSAND DOLLARS New Projects: A D A: Recommended Projects and Modifications 762; Recommended Project Budgets 7 62; Estimated Total Reimbursements 0; Projected Total Net V T A Project Costs is 762. Information Systems: Recommended Projects and Modifications 1,775; Recommended P roject Budgets 1,775; Estimated Total Reimbursements 0; Projected Total Net V T A Project Costs is 1,775. Non-Revenue Vehicles: Recommended Projects and Modifications 952; Recommended Pr oject Budgets 952; Estimated Total Reimbursements 0; Projected Total Net V T A P roject Costs is 952. Operating Equipment: Recommended Projects and Modifications 1,082; Recommended P roject Budgets 1,082; Estimated Total Reimbursements 0; Projected Total Net V T A Project Costs is 1,082.

Operating Facilities: Recommended Projects and Modifications 3,611; Recommended Project Budgets 3,611; Estimated Total Reimbursements 0 ; Projected Total Net V T A Project Costs is 3,611. Passenger Facilities: Recommended Projects and Modifications 7,367; Recommended Project Budgets 7,367; Estimated Total Reimbursements 0; Projected Total Net V T A Project Costs is 7,367. Revenue Vehicles: Recommended Projects and Modifications 34,514; Recommended Pro ject Budgets 34,514; Estimated Total Reimbursements minus 15,085; Projected Tota l Net V T A Project Costs is 19,429. Caltrain Capital Contribution: Recommended Projects and Modifications 5,734; Rec ommended Project Budgets 5,734; Estimated Total Reimbursements 0; Projected Tota l Net V T A Project Costs is 5,734. Other: Recommended Projects and Modifications 5,484; Recommended Project Budgets 5,484; Estimated Total Reimbursements 0; Projected Total Net V T A Project Cost s is 5,484. Total New Projects: Recommended Projects and Modifications 61,281; Recommended P roject Budgets 61,281; Estimated Total Reimbursements minus 15,085; Projected To tal Net V T A Project Costs is 46,196. Augmented Projects: Bus Service Expansion (This category includes $37,149,000 that reflects the firs t three years of costs for the Cerone Complex Rehabilitation and Expansion proje ct. Total budget for this six-year project is $85,530,000): Approved Project Bu dgets 14,549; Recommended Projects and Modifications 22,639; Recommended Project Budgets 37,188; Estimated Total Reimbursements minus 11,990; Projected Total Ne t V T A Project Costs is 25,198. Information Systems: Approved Project Budgets 60; Recommended Projects and Modif ications 440; Recommended Project Budgets 500; Estimated Total Reimbursements 0; Projected Total Net V T A Project Costs is 500. Passenger Facilities: Approved Project Budgets 929; Recommended Projects and Mod ifications 37,801; Recommended Project Budgets 38,730; Estimated Total Reimburse ments 0; Projected Total Net V T A Project Costs is 38,730. Revenue Vehicles: Approved Project Budgets 3,320; Recommended Projects and Modif ications 15,130; Recommended Project Budgets 18,450; Estimated Total Reimburseme nts minus 18,450; Projected Total Net V T A Project Costs is 0. Total Augmented: Approved Project Budgets 18,858; Recommended Projects and Modif ications 76,010; Recommended Project Budgets 94,868; Estimated Total Reimburseme nts minus 30,440; Projected Total Net V T A Project Costs is 64,428. Carryover Projects: A D A Paratransit: Approved Project Budgets 6,260; Recommended Project Budgets 6 ,260; Estimated Total Reimbursements minus 3,807; Projected Total Net V T A Proj ect Costs is 2,453. Bus Service Expansion: Approved Project Budgets 61,363; Recommended Project Budg ets 61,363; Estimated Total Reimbursements minus 21,022; Projected Total Net V T A Project Costs is 40,341.

Information Systems: Approved Project Budgets 64,270; Recommended Project Budget s 64,270; Estimated Total Reimbursements minus 12,202; Projected Total Net V T A Project Costs is 52,068. Non-Revenue Vehicles: Approved Project Budgets 4,940; Recommended Project Budget s 4,940; Estimated Total Reimbursements minus 209; Projected Total Net V T A Pro ject Costs is 4,731. Operating Equipment: Approved Project Budgets 24,485; Recommended Project Budget s 24,485; Estimated Total Reimbursements minus 11,750; Projected Total Net V T A Project Costs is 12,735. Operating Facilities: Approved Project Budgets 21,001; Recommended Project Budge ts 21,001; Estimated Total Reimbursements minus 222; Projected Total Net V T A P roject Costs is 20,779. Passenger Facilities: Approved Project Budgets 28,743; Recommended Project Budge ts 28,743; Estimated Total Reimbursements minus 14,490; Projected Total Net V T A Project Costs is 14,253. Rail Expansion: Approved Project Budgets 385,518; Recommended Project Budgets 38 5,518; Estimated Total Reimbursements minus 344,826; Projected Total Net V T A P roject Costs is 40,692. Revenue Vehicles: Approved Project Budgets 306,422; Recommended Project Budgets 306,422; Estimated Total Reimbursements minus 268,171; Projected Total Net V T A Project Costs is 38,251. Studies and Planning: Approved Project Budgets 1,380; Recommended Project Budget s 1,380; Estimated Total Reimbursements 0; Projected Total Net V T A Project Cos ts is 1,380. Other: Approved Project Budgets 31,252; Recommended Project Budgets 31,252; Esti mated Total Reimbursements minus 648; Projected Total Net V T A Project Costs is 30,604. Total Carryover: Approved Project Budgets 935,634; Recommended Project Budgets 9 35,634; Estimated Total Reimbursements minus 677,347; Projected Total Net V T A Project Costs is 258,287. Subtotal: Approved Project Budgets 954,492; Recommended Projects and Modificatio ns 137,291; Recommended Project Budgets 1,091,783; Estimated Total Reimbursement s minus 722,872; Projected Total Net V T A Project Costs is 368,911. Debt Service: Approved Project Budgets 27,537; Recommended Project Budgets 27,53 7; Estimated Total Reimbursements 0; Projected Total Net V T A Project Costs is 27,537. Total Capital Projects: Approved Project Budgets 982,029; Recommended Projects a nd Modifications 137,291; Recommended Project Budgets 1,119,320; Estimated Total Reimbursements minus 722,872; Projected Total Net V T A Project Costs is 396,44 8. The following is a brief description of all major new and augmented capital proj ects that exceed $200,000. A summary listing of all new and augmented projects is presented in Appendix E. NEW CAPITAL PROJECTS Americans with Disabilities Act (A D A) Passenger Access:

V T A stop going chair

has made a concerted effort to improve transit accessibility by making bus accessibility improvements. The Fiscal Year 2001/2002 component of this on program calls for improvements at approximately 100 sites, including wheel curb ramps and improvements at passenger boarding areas.

Project Budget: 762,000 dollars Grant Funding: 0 dollars Local Funds required: 762,000 dollars Information Systems, Communications and Technology: Telephone Systems Replacement Three components of V T A's Telephone Systems infrastructure are in need of repl acement, due in part to having reached the end of their useful life, and to the overall growth of communications demand. The existing telephone system at River Oaks was installed in 1992 and is no long er supported by the manufacturer. Replacement components are no longer available and component failure could result in significant downtime for the entire voice network. The Voice Mail system, purchased and installed at the same time, is also at the end of its useful life and has been subject to significant failure. The Interactive Voice Response (I V R) system serves over 1,000 customers every day with recorded route information. The existing system is limited, both functi onally and technologically, and is not scaleable to meet increasing customer dem ands. A replacement will meet increased customer contacts needs, and have the ad ded benefits of fax on demand, speech recognition, multiple language capabilitie s, accurate call counts, improved reporting and faster response times. Project Budget: 390,000 dollars Grant Funding: 0 dollars Local Funds required: 390,000 dollars Internet Development Suite As V T A continues to expand and enhance its web presence, sophisticated tools a re required to reduce the amount of staff time devoted to its development and ma intenance. This suite of Internet tools and applications developers is needed to build web applications in H T M L and JAVA. This project will also include othe r related expenses such as security software, infrastructure, servers, training and services to support its deployment. Project Budget: 300,000 dollars Grant Funding: 0 dollars Local Funds required: 300,000 dollars Business Warehouse Enhancements Business Warehouse (B W) is the repository for V T A's enterprise information to be used for storing and querying data from our E R P system, historical payroll and pension plan data, project reporting information, and sales tax data, among other information. This project will upgrade the system to improve system avail ability and performance. Powerful data extraction and reporting tools will also be added to quickly and efficiently migrate all required enterprise data into BW and then be able to create fast and accurate customized reports. Project Budget: 975,000 dollars Grant Funding: 0 dollars Local Funds required: 975,000 dollars Non Revenue Vehicles (N R V):

N R V procurement is a planned, on going activity. There are 23 vehicles schedu led for replacement due to their age or mileage. Additionally, the demand on ou r N R V fleet to support increased activities, especially in support of transit service expansion, requires 15 more vehicles. Most of these vehicles will be us ed in support of the Capital Program, which will result in project reimbursement for their usage. Vehicle assignment at V T A utilizes a cascade approach with o lder, used vehicles assigned to construction site inspection. (More information is provided in Appendix F.) Project Budget: 951,750 dollars Grant Funding: 0 dollars Local Funds required: 951,750 dollars Operating Equipment Woz Way Portable Crossover In order to connect the Vasona Corridor Light Rail line to the existing rail sys tem, rail traffic must be temporarily diverted around the San Carlos and Woz Way crossing, where a Half Grand Union connection will be installed. A permanent do uble crossing will also be installed near the Virginia Station, which will also require a temporary crossing to divert traffic. This portable crossover will ser ve these construction needs, as well as be used in other locations for future re habilitation or modification projects. Project Budget: 272,000 dollars Grant Funding: 0 dollars Local Funds required: 272,000 dollars Facilities and Equipment Emergency Repair Allowance This ongoing account allows V T A to expedite unplanned repairs that may be requ ired at facilities or to equipment that is essential to normal or safe operation s. These funds are not used for regular anticipated maintenance activities and a re administered by the Deputy Director of Operations for Maintenance. Project Budget: 400,000 dollars Grant Funding: 0 dollars Local Funds required: 400,000 dollars Maintenance Equipment Replacement Program This capital item allows for the scheduled replacement of equipment that has rea ched the end of its useful life. It allows V T A to proactively keep its equipm ent in a state of good repair, while reducing more expensive repairs and downtim e. Equipment scheduled for replacement in Fiscal Year 2001/2002 includes eight wheel lift sets, four forklifts, two tow tractors, one parts washer, and one sel f-propelled scissor lift. Project Budget: 410,000 dollars Grant Funding: 0 dollars Local Funds required: 410,000 dollars Operating Facilities: Guadalupe Vehicle Wash Modifications The current light rail vehicle wash system does not remove carbon deposits from the vehicle roof, which results in black carbon streaks running down the sides o f the vehicles, and water spotting windows and windshield. This project will ins tall an enclosure around the wash system, add a high speed spinner arch to impro ve cleaning of the roof and pantograph, improve the reverse osmosis and final ri nse systems, and modify the system to improve the industrial waste water system and meet all environmental health and safety compliance concerns and regulations .

Project Budget: 744,000 dollars Grant Funding: 0 dollars Local Funds required: 744,000 dollars L R T Drainage Improvements Drainage patterns in the Moffett Field/Lockheed Martin area have been affected w ith the construction of the Tasman West Light Rail Project. Water now accumulate s south of the light rail tracks, unable to flow into the fields north of the tr acks. This project will install a drainpipe to alleviate this condition and redu ce the risk of flooding the roadway and rail facilities. Project Budget: 400,000 dollars Grant Funding: 0 dollars Local Funds required: 400,000 dollars Pavement Management Program This is an ongoing program to keep V T A owned parking lots and driveways in a s tate of good repair. Typically, activities in this program include scheduled sl urry sealing and restripping as well as performing minor repairs and repaving, i f needed. Facilities scheduled for Fiscal Year 2001/2002 includes major rehabil itation of the parking lot at River Oaks and the coach access road at Cerone. Th is request also includes an annual allowance for minor repairs, inspections, spo t sealing, and other preventative maintenance. Project Budget: 1,099,000 dollars Grant Funding: 0 dollars Local Funds required: 1,099,000 dollars Painting Management Program This is an on-going, comprehensive long-term program to maintain the appearance and integrity of V T A facilities. This year's program identifies several Light Rail stations and the fuel island at the North Division. This request also incl udes an annual allowance for unscheduled painting and touch ups. Project Budget: 388,000 dollars Grant Funding: 0 dollars Local Funds required: 388,000 dollars Bus Stop Duckout and Pavement Restoration Program V T A has been committed to maintaining safe and sound operating conditions for transit vehicles, operators and our customers. Maintaining the roadway surface a t our bus stops is a key component of this commitment. Additionally, some local jurisdictions require the installation of concrete pads at new bus stops. The Fi scal Year 2001/2002 component of this ongoing program will fund the pavement res toration at approximately 20 sites, along with the construction of one new bus d uckout. Project Budget: 810,000 dollars Grant Funding: 0 dollars Local Funds required: 810,000 dollars Passenger Facilities: De Anza College Transit Center V T A currently operates five bus lines that serve De Anza College, three of whi ch layover in the area at different locations. Passengers must walk a considerab le distance to catch a bus or transfer. The consolidation of these lines into on e transit center will better serve the public by reducing this inconvenience, as well as provide needed operator restroom facilities. De Anza College supports t he construction of a transit center on campus, having included it in their Maste r Expansion Plan. This project will construct an on-campus transit center, inclu

ding six bus bays, passenger shelters and other amenities. Project Budget: 3,767,000 dollars Grant Funding: 0 dollars Local Funds required: 3,767,000 dollars Light Rail Shelter and Windscreen Retrofit - Phase 2 When the Guadalupe Corridor was constructed, shelters and windscreens were not i ncluded at platforms in the northbound direction, north of Civic Center, and in the southbound direction, south of the Children's Discovery Museum. Subsequent c hanges in commute patterns now make it desirable to provide these amenities wher e they were previously omitted. V T A is currently constructing additional shelt ers and windscreens at six Guadalupe line stations (Capitol, Curtner, Tamien, Gi sh, River Oaks, and Old Ironsides.) This project would add two new shelters (Vi rginia southbound and Tasman southbound) and 27 additional windscreens at variou s stations. Project Budget: 3,500,000 dollars Grant Funding: 0 dollars Local Funds required: 3,500,000 dollars Revenue Vehicles: Bus Fleet Procurement Bus procurement is a planned, on-going activity, both for purposes of fleet expa nsion and necessary replacement of existing buses. The V T A Bus Purchase Progr am for Fiscal Year 2001/2002 includes the scheduled replacement of existing buse s, the acquisition of additional buses to meet V T A's aggressive expansion plan , as well as buses to participate in M T C's Regional Express Bus Service Progra m. This budget calls for replacing 33 buses that were built in 1990 and have ex ceeded their useful life. Criteria for V T A bus replacement are 12 to14 years. The replacement buses will be low floor, featuring reduced exhaust emissions an d are eligible for federal grant funding. V T A' s expansion program to meet growing customer needs is reflected in this b udget's inclusion of 40 additional buses. These additional low-floor buses, also featuring reduced exhaust emissions, will help achieve V T A's goal of operatin g a 750 bus fleet. In addition to these 40 expansion buses, M T C's Regional Express Bus Service Pr ogram will provide funding for acquiring buses used in providing regional expres s bus service. V T A has two proposals for this program that call for 15 additio nal buses to operate express service between BART and San Jose. These proposals will expand the existing Express 140 service between the Fremont BART station an d the Baypointe L R T station, and add new peak hour direct service between Frem ont BART and Downtown San Jose. Project Budget: 29,972,316 dollars Grant Funding: 14,372,262 dollars Local Funds required: 15,600,054 dollars Emissions Retrofit of Bus Diesel Engines The California Air Resources Board (C A R B) has mandated the retrofit of all V T A diesel bus engines with certified devices to reduce particulate emissions. T he mandatory schedule for this engine retrofit program requires retrofitting by January 1, 2003 of all 1990 and earlier buses, as well as 50percent of all 1991 through 1995 buses. All remaining buses must be retrofitted by January 1, 2007. V T A is accelerating this program with a goal of meeting the January 1, 2003 d eadline, as well as completing retrofitting of all applicable buses by July 1, 2 005, a full 18 months ahead of C A R B regulatory requirements.

Project Budget: 3,829,000 dollars Grant Funding: 0 dollars Local Funds required: 3,829,000 dollars Caltrain Capital Contribution Caltrain has requested that each member agency budget $5,734,000 as a local matc h for their capital program budget. In the past two fiscal years, VTA has budge ted a combined $3.2 million local share for Caltrain capital projects. The requ est for this fiscal year includes almost $2 million of VTA local share to accele rate the preliminary engineering for the Electrification project. Other signifi cant projects include the San Jose Diridon Station and Track Improvements, syste mwide Track Rehabilitation, the upgrade of the Centralized Traffic Control and t he continued implementation of Ticket Vending Machines. Project Budget: 5,734,000 dollars Grant Funding: 0 dollars Local Funds required: 5,734,000 dollars Other: Rail Systems Design Consultant Services Systems Design consultant services are needed on an "as-needed" basis to support V T A rail projects over the next five years. Available on an on-call "task ord er" basis, these rail design services will enable V T A to support the many rail maintenance and retrofit projects, as well as special projects such as vehicle simulation required to integrate the Vasona, Guadalupe, and Tasman lines. Project Budget: 5,000,000 dollars Grant Funding: 0 dollars Local Funds required: 5,000,000 dollars Office Furniture Office furniture needs to be purchased and installed at various V T A facilities for new staff, and existing workstations must be reconfigured to accommodate th e added workstations and changing work assignments. Project Budget: 367,000 dollars Grant Funding: 0 dollars Local Funds required: 367,000 dollars AUGMENTED CAPITAL PROJECTS Bus Service Expansion: Cerone Complex Rehabilitation and Expansion V T A's Bus Service Expansion Program requires significant modification and enha ncement to its support facilities. This has already commenced with the reconstr uction of North Yard in Mountain View. The Cerone Complex, which houses the Cer one Operating Division, the system-wide Parts Distribution Center, and the Overh aul and Repair (O and R) Division, also will require major reconstruction and ex pansion. This is necessary for OandR to maintain a 750 bus fleet and the operat ion of 300 buses (including articulated) at the Operating Division by 2006. Reco nfiguration of the facility will allow for maximum utilization of the existing l and and the adjacent undeveloped land parcel. This should allow for the sale of a portion of the resultant excess property to offset some of the capital costs o f the project. The total estimated budget over the six-year duration of this pro ject is 85,530,000 dollars, which represents an increase of 11,262,000 dollars f rom earlier estimates. This revision is due primarily to the increased scope of the project from a total fleet size of 600 to 750 buses. The scope change is th e result of the passage of 2000 Measure A, which will fund the incrementally inc reased cost. This year's budget augmentation request of 22,638,675 dollars will fund the third year projected expenditure of the project.

Existing Budget: 14,548,652 dollars Augmentation: 22,638,675 dollars Total Grant Funding: 8,400,000 dollars 2000 Measure A Funding: 3,590,041 dollars Total Local Funds required: 25,197,286 dollars Information Systems, Communications and Technology: Closed Circuit TV (C C T V) Demonstration Project In order to increase security at V T A passenger facilities, Protective Services is working to develop a program to automate site access and digital CCTV survei llance at various V T A facilities. This project will install C C T V at facilit ies with high passenger activity as a demonstration project for future transit c enters and light rail stations. This budget would augment the current C C T V pr oject at Tamien to add installations at the Ohlone/Chynoweth and Baypointe light rail stations and the Eastridge and Mountain View transit centers. Existing Budget: 60,000 dollars Augmentation: 440,000 dollars Total Grant Funding: 0 dollars Total Local Funds required: 500,000 dollars Passenger Facilities: Elevator Floor Replacement Due to wear and abuse, the floors of the nine elevators located at stations alon g the Guadalupe L R T line are in need of replacement. The current floors are bo th a safety and aesthetic concern for our customers. The new floors will be easi er to maintain and should have a considerably longer life. Existing Budget: 86,280 dollars Augmentation: 335,000 dollars Total Grant Funding: 0 dollars Total Local Funds required: 421,280 dollars Guadalupe Corridor Station Platform Retrofit - Phase 2 In order to utilize future low floor light rail vehicles throughout the system, the station platforms along the original Guadalupe Corridor L R T line must be m odified. The Phase 1 project raised the platforms for the Guadalupe Corridor sta tions along Tasman Drive. This project will retrofit the remaining station platf orms (15 center and 24 side) along the Guadalupe Corridor L R T line. Existing Budget: 843,000 dollars Augmentation: 37,466,000 dollars Total Grant Funding: 0 dollars Total Local Funds required: 38,309,000 dollars Revenue Vehicles: Zero Emission Buses (Z E B) Demonstration Project California Air Resources Board (C A R B) regulations require transit agencies to procure Z E Bs in the future and as early as 2003 depending on the fuel path se lected. Based on the information available, fuel cell technology appears to be the most prominent technology for Z E Bs. Therefore, V T A is proceeding with a demonstration of fuel cell technology to evaluate the impacts on operation, mai ntenance, and the public. This demonstration program, with a fleet of three to ten fuel cell buses, will be done in conjunction with SamTrans to increase effec tiveness. The program will include the procurement of fuel cell buses, evaluati on and installation of a hydrogen fueling facility, modification of existing mai ntenance facility to accommodate fuel cell (hydrogen fuel buses), training of st aff, public and emergency departments as well as the evaluation of the overall p rogram. Initially, V T A budgeted for the purchase of 3 buses. Based on the lat

est information of vehicle costs, facility requirements, along with the new part nership with SamTrans and an increased number of vehicles, these funds will need to be augmented. Existing Budget: 3,320,000 dollars Augmentation: 15,130,000 dollars Total Grant Funding: 105,000 dollars SAMTRANS Contribution: 6,000,000 dollars 2000 Measure A Funding: 12,345,000 dollars Total Local Funds required: 0 dollars 1996 MEASURE B TRANSPORTATION IMPROVEMENT PROGRAM The voters of Santa Clara County approved Measures A and B on November 6, 1996. The advisory Measure A delineated a list of priority transportation projects to be undertaken should funding become available. The validity of 1996 Measure B, which called for a nine year half cent general sales tax, was challenged in the courts. The California State Supreme Court refused to hear an appeal, upholdin g 1996 Measure B and allowing the sales tax to stand. In February 2000, the V T A Board of Directors approved the execution of the Mas ter Agreement with Santa Clara County Board of Supervisors. The agreement identi fies the roles, responsibilities and obligations of County and V T A in the impl ementation of the 1996 Measure B Transportation Improvement Program (M B T I P). In the agreement, the County Board of Supervisors has committed actual 1996 Me asure B sales tax receipts for use in the completion of the 1996 Measure A Proje cts. The Base Case Implementation Plan, approved by the County Board of Supervi sors in June 1999, and updated in June 2000, identifies the 1996 Measure B Proje cts, along with preliminary budget estimates. The ultimate project scopes and es timated costs for completion will be revised based on Baseline Scope, Schedule a nd Costs submitted to both V T A and County Boards at the completion of prelimin ary design or project study reports. The 1996 M B T I P projects are grouped into seven programs: Transit Program, Hi ghway Program, Bicycle Program, Pavement Management Program, Fund Transfer Proje cts, Expressway Signal Synchronization Program, and Level of Service Intersectio n Improvement Program. V T A is not involved in the administration of the last t wo programs. The following is a description of the Transit, Highway, Bicycle, Pa vement Management Programs and Fund transfer Projects. TRANSIT PROGRAM: The Transit Program includes six major rail projects. The total projected cost i s 953,002,000 dollars including a contingency of 5,684,000 dollars. Map of 1996 Measure B Rail Projects - Description The 1996 Measure B Rail Projects map shows all 1996 Measure B Rail Projects loca ted throughout Santa Clara County. The 1996 Measure B Rail Projects map display s Tasman East Light Rail Corridor, Capitol Light Rail Corridor, Vasona Light Rai l Corridor; previously funded light rail, previously funded commuter rail, Caltr ain Commuter Rail - existing to be upgraded and existing/future Intermodal Stati ons. The map does not show highway projects, Alameda-Santa Clara Counties Corri dor, new light rail vehicles and bikeways. Tasman East Light Rail Project The Tasman East Project extends the current double track light rail system 4.8 m iles east of North First Street. It is being built in three phases and will add seven light rail stations and three park and ride lots. Two of the stations ar e elevated on 1 point 7 miles of elevated structure in the City of Milpitas. Re venue Service from Baypointe Station to North First Street began in December 199

9. Project Budget: 270,175,000 dollars Funding: 171,170,000 dollars in 1996 M B T I P funds and $99,005,000 in Federa l/State funds Estimated Completion: Spring 2001 (Zanker to I 880) and Spring 2004 (I 880 to Ho stetter) Vasona Light Rail Project The Vasona Project extends light rail 5 point 2 miles from downtown San Jose to downtown Campbell, utilizing Union Pacific freight rail alignment primarily on s ingle track from Diridon Station to Campbell. In downtown San Jose, it transiti ons from Diridon Station in a short tunnel to San Fernando Street and Delmas Ave nue, then runs at grade along Delmas to Woz Way where it connects to the existin g Guadalupe line. Eight stations will be constructed in the first phase. V T A has committed to provide 16 point 5 million dollars towards the completion of t he project. In January 2001, the V T A Board approved an augmentation to this pr oject in the amount of 20 point 5 million dollars to include the Winchester Exte nsion. Project Budget: 256,691,000 dollars Funding: 173,095,000 dollars in 1996 M B T I P funds, $16,500,000 in V T A funds , $51,596,000 in Federal funds, 15,000,000 dollars in State funds (T C R P) and $500,000 in City of Campbell funds Estimated Completion: Fall 2004 Capitol Light Rail Project The Capitol Project extends light rail in the median of Capitol Avenue another 3 point 3 miles beyond Tasman East to just south of Alum Rock Avenue. The projec t includes double track with four stations, three of which have park and ride fa cilities. Project Budget: 136,262,000 dollars Fund: 136,262,000 dollars in 1996 M B T I P funds Estimated Completion: Spring 2004 New Rail Vehicles The expansion of Tasman East, Capitol, and Vasona Corridors will require approxi mately 30 new low floor light rail vehicles in order to meet the resultant servi ce levels. V T A has committed to provide funds in excess of the 90 million doll ars identified in the M B T I P. Project Budget: 97,078,000 dollars Funding: 90,078,000 dollars in 1996 M B T I P funds and 7,000,000 dollars in V T A funds Estimated Completion: Spring 2003 Fremont/South Bay Commuter Rail Connection This project, which is intended to connect Santa Clara County with BART in Alame da County, is on hold pending the outcome of a M I S study in the corridor. Project Budget: 97,955,000 dollars Funding: 97,955,000 dollars in 1996 M B T I P funds Estimated Completion: Summer 2003 Caltrain Service Improvements This project will provide a series of station and track improvements for the Cal train Commuter Rail service within Santa Clara County. Project Budget: 81,656,000 dollars

Funding: 81,656,000 dollars in 1996 M B T I P funds Estimated Completion: Multiple projects will be completed by mid 2005 Community Orientated Design Enhancement (C O DE) Program - Rail The Board of Supervisors pledged as a goal to incorporate up to 2percent of the construction costs of 1996 M B T I P rail projects for aesthetic enhancements of the projects. This is a placeholder for such costs. The appropriate cost will b e allocated back to the respective rail projects. Project Budget: 7,500,000 dollars in 1996 M B T I P funds HIGHWAY PROGRAM: The Highway Program includes eleven major projects. The total projected cost is 555,925,000 dollars. Map of 1996 Measure B Highway Projects -- Description The 1996 Measure B Highway Projects map shows all ten highway projects located t hroughout Santa Clara County and project estimated completion date. The map also indicates projects that have added lane capacity, safety improvements, noise mi tigation, interchange improvements, expressway signal synchronization and local street/road pavement repairs. The map does not show rail projects, Alameda-Sant a Clara Counties Corridor, new light rail vehicles and bikeways. Route 880 Widening This project will widen route 880 between Route 101/North First Street and Monta gue Expressway from a four to a six-lane freeway. Widening would occur within t he existing 40 foot median and include a 12 foot lane in each direction with a c enter barrier. A new eight-lane Coyote Creek/Brokaw Road Interchange Bridge wil l be constructed. Also included is a southbound auxiliary lane from Route 101 t o North First Street and ramp improvements at the southbound Brokaw Road exit ra mp. Project Budget: 60,386,000 dollars Funding: 46,386,000 dollars in 1996 M B T I P funds and 14,000,000 dollars in Fe deral and State funds Completion Date: 2003 Route 85/87 Connector Ramps This project will complete the existing interchange by adding two connector ramp s, including southbound Route 85 to northbound Route 87 and southbound Route 87 to northbound Route 85. In addition, the project will construct a high occupanc y vehicle (H O V) lane in each direction of Route 87 in the median between Route 85 and Branham Lane. Project Budget: 51,027,000 dollars Funding: 51,027,000 dollars in 1996 M B T I P funds Completion Date: 2003 Route 101 Widening The widening from four to six lanes plus two HOV lanes will occur in the existin g median between Cochrane Road and Metcalf Road, providing an additional two lan es in each direction and a 10 foot inside shoulder. Project Budget: 63,975,000 dollars Funding: 47,975,000 dollars in 1996 M B T I P funds and 16,000,000 dollars in St ate funds Completion Date: 2003 Route 85/101 (N) Interchange - Mountain View

This project will improve mainline weaving operations and increase Route 85 and Route 101 interchange capacity while maintaining the existing local interchange access at Old Middlefield Way, North Shoreline Boulevard, and Moffett Boulevard. The project will replace: the Route 85/Route 101 connector; modify interchange ramps at Moffett Boulevard, North Shoreline Boulevard and Old Middlefield Way; construct additional lanes; and, construct high occupancy vehicle (H O V) direct connector ramps between northbound Route 85 to northbound Route 101 and southbo und Route 101 to southbound Route 85. Project Budget: 130,892,000 dollars Funding: 105,892,000 dollars in 1996 M B T I P funds and 25,000,000 dollars in S TIP funds Completion Date: 2004 Route 237/880 Interchange This interchange completion project is comprised of two stages including: (1) di rect high occupancy vehicle connectors for southbound I-880 to westbound Route 2 37 and eastbound Route 237 to northbound I 880; (2) a southbound braided exit ra mp from I 880 to Tasman Drive interchange. Project Budget: 46,170,000 dollars Funding: 46,170,000 dollars in 1996 M B T I P funds Completion Date: 2004 Route 87 HOV Lanes (Between Branham Lane and I 280) This project will construct a high occupancy vehicle (H O V) lane in each direct ion in the existing median between Branham Lane and I 280, a distance of approxi mately 4 point 5 miles. In addition, the project will include installation of r amp meters, H O V on ramp bypasses and retaining walls. A separate project may include the repair of pavement, median barrier, sound wall, and drainage systems damaged by settlement in this segment of the freeway. Project Budget: 27,815,000 dollars Funding: 27,815,000 dollars in 1996 M B T I P funds (Caltrans has programmed 15 million dollars in S H O P P funds) Completion Date: 2004 Route 87 HOV Lanes (Between I-280 and Julian Street) This project widens Route 87, from I-280 to point 2 miles north of Julian Street , from a four to a six lane freeway. The project includes adding a high occupan cy (H O V) lane in each direction and installing ramp meters at the entrance ram ps. Project Budget: 34,010,000 dollars Funding: 34,010,000 dollars in 1996 M B T I P funds Completion Date: 2004 Route 85/101 (S) Interchange - South San Jose This project will construct high occupancy vehicle (H O V) direct connectors fro m northbound Route 101 to northbound Route 85 and southbound Route 85 to southbo und Route 101, and construct the southbound Route 101 to northbound Route 85 bra nch connector. In addition, the project will include the widening of Route 101 to eight lanes between Bernal Road and Metcalf Road. Project Budget: 58,314,000 dollars Funding: 33,314,000 dollars in 1996 M B T I P funds and 25 million dollars in St ate funds (TCRP) Completion Date: 2003 Route 17 Improvements

A conceptual study has been completed and includes the following recommended pro jects: (A) braided ramps: southbound 17 to Lark Avenue and southbound 85 to sout hbound 17; (B) reconfigure White Oaks Road from northbound 17 off ramp to Camden Avenue; (C) modify San Tomas Expressway between Winchester Boulevard and White Oaks Road; (D) auxiliary lane on northbound 17 between Route 85 and Camden Avenu e; (E) auxiliary lane on northbound 17 between Camden Avenue and Hamilton Avenue ; (F) improve the merge of I 280 with southbound Route 17; (G) improve Hamilton Avenue off-ramp with added paving and overhead sign; and (H) direct connector: n orthbound 17 to northbound 85. Project Budget: 51,600,000 dollars Funding: 51,600,000 dollars in 1996 M B T I P funds Completion Date: 2004 Route 152 Safety Improvements The project will provide safety and operational improvements on Route 152, betwe en Route 101 and Route 156. Project Budget: 16,221,000 dollars Funding: 11,221,000 dollars in 1996 M B T I P funds and 5,000,000 dollars in Cit y of Gilroy funds Completion Date: 2002 to2004 Route 85 Noise Mitigation The scope of this project has not been finalized. The intent is to mitigate noi se along the Route 85 corridor. In 1997, Caltrans conducted a noise study in th e corridor that identified several abatement alternatives. The preferred altern ative to address the noise concerns are currently under review by V T A. Project Budget: 9,263,000 dollars Funding: 9,263,000 dollars in 1996 M B T I P funds Completion Date: 2004 Community Orientated Design Enhancement (C O D E) Program - Highway The Board of Supervisors pledged as a goal to incorporate up to 2 percent of the construction costs of 1996 M B T I P highway projects for aesthetic enhancement s of the projects. This is a placeholder for such costs. The appropriate cost wi ll be allocated back to the respective highway projects. Project Budget: 6,252,000 dollars in 1996 M B T I P funds FUND TRANSFER PROGRAM In order to maximize funding opportunities and operational efficiencies, V T A h as agreed to secure Federal or State grant funds for certain 1996 M B T I P proj ects and to release 1996 M B T I P funds to fund other projects. Currently, fund transfers have been performed on the Tasman East and Vasona Light Rail Projects . Tasman East Light Rail Project Transfer 72 point 8 million dollars of Federal and State grants funds were transferred in to this project and a net of $67.9 was transferred out for other projects or pur poses. Vasona Light Rail Project Transfer 51 point 6 million dollars of Federal and State grants funds was transferred int o this project and the same amount was transferred out for other projects or pur poses. BICYCLE PROGRAM

The 1996 M B T I P has allocated 12 million dollars towards the Bicycle Program, a series of bicycle projects that were developed as part of the Countywide Bicy cle Plan. V T A's Board of Directors adopted the Bicycle Plan in October 2000 af ter approval of a ten-year expenditure plan by V T A and the County Board of Sup ervisors. PAVEMENT MANAGEMENT PROGRAM This program administers and distributes 1996 M B T I P funds, along with other sources, to local jurisdictions for street repair and other transportation proje cts. V T A is responsible for the administration and distribution of program fun ds. The total M B T I P allocation to this the program is projected at 90 millio n dollars. OTHER LOCAL PROJECTS V T A has entered into construction agreements with various cities in the County . The major ones are: Montague Expressway Widening The City of Milpitas Montague Expressway Widening Project is scheduled for const ruction concurrent with the construction of the Tasman East elevated guideway co ntract. Since both of these projects will involve work at the Montague and Capit ol Avenue intersection, the City has requested that V T A combine the two projec ts into a single construction contract. Project Budget: 2,500,000 dollars Funding: 2,500,000 dollars from the City of Milpitas Route 880/Coleman Reconstruct the Coleman Avenue Interchange at Route 880 in San Jose to improve a ccess to San Jose International Airport. This project is sponsored by the City of San Jose. Project Budget: 68,000,000 dollars Funding: 5,000,000 dollars in City of San Jose funds, 5,000,000 dollars in State (T C R P) funds and 58,000,000 dollars in future federal, State and local funds . Completion Date: 2005 I 680/I 880 Cross Connector Study Prepare a Conceptual Alternative Analysis for a freeway connector from I 680 to I 880 including preliminary engineering and environmental document. Project Budget: 2,500,000 dollars Funding: 500,000 dollars in V T A Gateway Studies funds, 1,000,000 dollars in St ate (T C R P) funds and 1,000,000 dollars in Alameda County Transportation Autho rity funds Completion Date: 2004 South County Gateway Study Study multi-modal transportation improvements at the gateways to Santa Clara Cou nty to identify cost-effective transportation projects. Based on preliminary fi ndings in V T P 2020, the following corridors are considered for study: Route 25 from the San Benito County Line to Gilroy; Highway 101 from Gilroy to the San B enito County Line; Highway 156 from Route 152 to the San Benito County Line; and Highway 152 from Gilroy to the junction with 156. Project Budget: 500,000 dollars

Funding: 500,000 dollars in V T A Gateway Studies funds. Completion Date: 2003 APPENDIX A Santa Clara Valley Transportation Authority Employee Positions by Division and P ay Ranges As of 3/12/2001 in whole dollars OFFICE OF THE GENERAL MANAGER: General Manager; number of positions 1; maximum 183,955. Government Affairs Manager; number of positions 1; minimum annual rate 82,075; m id or top step 95,207; maximum 108,339. Board Secretary; number of positions 1; minimum annual rate 78,154; mid or top s tep 90,659; maximum 103,164. Transportation Policy and Program Manager II; number of positions 1; minimum ann ual rate 67,528; mid or top step 78,333; maximum 89,137. Transportation Policy and Program Manager I; number of positions 2; minimum annu al rate 67,528; mid or top step 78,333; maximum 89,137. Transportation Policy and Program Coordinator II; number of positions 1; minimum annual rate 61,251; mid or top step 71,051; maximum 80,851. Records Management Supervisor; number of positions 1; minimum annual rate 58,337 ; mid or top step 67,671; maximum 77,005. Management Analyst; number of positions 1; minimum annual rate 55,573; mid or to p step 64,465; maximum 73,357. Executive Secretary to General Manager; number of positions 1; minimum annual ra te 48,011; mid or top step 55,693; maximum 63,374. Executive Secretary; number of positions 1; minimum annual rate 43,554; mid or t op step 50,523; maximum 57,492. Senior Board Assistant; number of positions 1; minimum annual rate 43,554; mid o r top step 50,523; maximum 57,492. Board Assistant; number of positions 9; minimum annual rate 38,156; mid or top s tep 46,082. Administrative Services Assistant III; number of positions 1; minimum annual rat e 34,128; mid or top step 39,588; maximum 45,049. Office Specialist II; number of positions 2; minimum annual rate 31,600; mid or top step 38,156. Total number of positions 24. OFFICE OF THE GENERAL COUNSEL: General Counsel; number of positions 1; maximum 141,341. Assistant General Counsel; number of positions 1; minimum annual rate 115,475; m id or top step 133,951; maximum 152,427. Senior Assistant Counsel; number of positions 5; minimum annual rate 90,495; mid

or top step 104,974; maximum 119,453. Legal Secretary; number of positions 1; minimum annual rate 45,718; mid or top s tep 53,034; maximum 60,348. Administrative Services Assistant III; number of positions 1; minimum annual rat e 34,128; mid or top step 39,588; maximum 45,049. Total number of positions 9. OPERATIONS - ADMINISTRATION: Director, Transit Operations; number of positions 1; minimum annual rate 121,259 ; mid or top step 140,661; maximum 160,063. Deputy Director, Service and Oper Planning; number of positions 1; minimum annua l rate 86,167; mid or top step 99,954; maximum 113,740. Chief of Security; number of positions 1; minimum annual rate 82,075; mid or top step 95,207; maximum 108,339. Manager, Rail Operations Planning; number of positions 1; minimum annual rate 74 ,448; mid or top step 86,360; maximum 98,271. Service Planning Manager; number of positions 1; minimum annual rate 70,892; mid or top step 82,234; maximum 93,577. Operations Program Manager; number of positions 1; minimum annual rate 67,528; m id or top step 78,333; maximum 89,137. Policy and Administrative Manager - Oper; number of positions 1; minimum annual rate 67,528; mid or top step 78,333; maximum 89,137. Accessible Services Program Manager; number of positions 1; minimum annual rate 64,314; mid or top step 74,605; maximum 84,895. Light Rail Signal Supervisor; number of positions 1; minimum annual rate 64,314; mid or top step 74,605; maximum 84,895. Senior Management Analyst; number of positions 2; minimum annual rate 64,314; mi d or top step 74,605; maximum 84,895. Service Planning Supervisor; number of positions 1; minimum annual rate 58,337; mid or top step 67,671; maximum 77,005. Management Analyst; number of positions 10; minimum annual rate 55,573; mid or t op step 64,465; maximum 73,357. Transportation Supervisor; number of positions 2; minimum annual rate 57,223; mi d or top step 69,563. Engineering Technician III; number of positions 1; minimum annual rate 51,674; m id or top step 62,536. Transit Service Development Spec III; number of positions 1; minimum annual rate 50,453; mid or top step 61,037. Administrative Support Officer; number of positions 1; minimum annual rate 45,71 8; mid or top step 53,034; maximum 60,348.

Transit Service Planner; number of positions 1; minimum annual rate 49,489; mid or top step 59,880. Executive Secretary; number of positions 2; minimum annual rate 43,554; mid or t op step 50,523; maximum 57,492. Transit Service Development Spec II; number of positions 5; minimum annual rate 45,868; mid or top step 55,509. Engineering Technician II; number of positions 1; minimum annual rate 45,418; mi d or top step 54,973. Fare Inspector; number of positions 9; minimum annual rate 33,633; mid or top st ep 48,048. Transit Service Development Spec I; number of positions 2; minimum annual rate 3 9,420; mid or top step 47,647. Customer Services Representative; number of positions 1; minimum annual rate 39, 248; mid or top step 47,411. Administrative Services Assistant III; number of positions 1; minimum annual rat e 34,128; mid or top step 39,588; maximum 45,049. Secretary; number of positions 1; minimum annual rate 33,614; mid or top step 40 ,577. Office Specialist II; number of positions 5; minimum annual rate 31,600; mid or top step 38,156. Traffic Checker ; number of positions 10; minimum annual rate 31,300; mid or top step 37,792. Total number of positions 65. OPERATIONS - TRANSPORTATION: Deputy Director, Transit Operations; number of positions 1; minimum annual rate 95,015; mid or top step 110,217; maximum 125,420. Transportation Superintendent; number of positions 5; minimum annual rate 74,448 ; mid or top step 86,360; maximum 98,271. Assistant Supt, Field Operations; number of positions 1; minimum annual rate 64, 314; mid or top step 74,605; maximum 84,895. Assistant Supt, Transit Communications; number of positions 1; minimum annual ra te 64,314; mid or top step 74,605; maximum 84,895. Management Analyst; number of positions 1; minimum annual rate 55,573; mid or to p step 64,465; maximum 73,357. Transportation Supervisor; number of positions 50; minimum annual rate 57,223; m id or top step 69,563. Transit Division Supervisor; number of positions 7; minimum annual rate 57,223; mid or top step 69,563. Transportation Supervisor - OCC; number of positions 2; minimum annual rate 57,2 23; mid or top step 69,563.

Bus Dispatcher Timekeeping System Spec; number of positions 1; minimum annual ra te 50,196; mid or top step 60,737. Administrative Support Officer; number of positions 2; minimum annual rate 45,71 8; mid or top step 53,034; maximum 60,348. Executive Secretary; number of positions 1; minimum annual rate 43,554; mid or t op step 50,523; maximum 57,492. Dispatcher - Bus; number of positions 24; minimum annual rate 37,294; mid or top step 53,268. Dispatcher - L R T; number of positions 5; minimum annual rate 37,294; mid or to p step 53,268. Transit Radio Dispatcher; number of positions 32; minimum annual rate 34,049; mi d or top step 48,630. Light Rail Operator; number of positions 100; minimum annual rate 32,843; mid or top step 46,904. Bus Operator; number of positions 1043; minimum annual rate 32,843; mid or top s tep 46,904. Part Time Bus Operator; number of positions 50; minimum annual rate 32,843; mid or top step 46,904. Account Clerk II; number of positions 6; minimum annual rate 32,221; mid or top step 38,884. Office Specialist II; number of positions 13; minimum annual rate 31,600; mid or top step 38,156. Total number of positions 1,345. OPERATIONS - MAINTENANCE: Deputy Director, Transit Maintenance; number of positions 1; minimum annual rate 95,015; mid or top step 110,217; maximum 125,420. Facilities Maintenance Manager; number of positions 1; minimum annual rate 82,07 5; mid or top step 95,207; maximum 108,339. General Superintendent - Maintenance; number of positions 2; minimum annual rate 82,075; mid or top step 95,207; maximum 108,339. Maintenance Engineering Manager; number of positions 1; minimum annual rate 82,0 75; mid or top step 95,207; maximum 108,339. Maintenance Support Services Manager; number of positions 1; minimum annual rate 82,075; mid or top step 95,207; maximum 108,339. Communications Systems Manager; number of positions 1; minimum annual rate 74,44 8; mid or top step 86,360; maximum 98,271. Light Rail Equipment Superintendent; number of positions 1; minimum annual rate 74,448; mid or top step 86,360; maximum 98,271. Light Rail Way, Power and Signal Supt; number of positions 1; minimum annual rat

e 74,448; mid or top step 86,360; maximum 98,271. Maintenance Superintendent; number of positions 4; minimum annual rate 74,448; m id or top step 86,360; maximum 98,271. Rail Integration Project Manager; number of positions 1; minimum annual rate 74, 448; mid or top step 86,360; maximum 98,271. Materials Manager; number of positions 1; minimum annual rate 70,892; mid or top step 82,234; maximum 93,577. Senior Mechanical Engineer - Auto Systems; number of positions 1; minimum annual rate 72,307; mid or top step 87,881. Senior Systems Engineer; number of positions 1; minimum annual rate 72,307; mid or top step 87,881. Light Rail Signal Supervisor; number of positions 1; minimum annual rate 64,314; mid or top step 74,605; maximum 84,895. Senior Management Analyst; number of positions 2; minimum annual rate 64,314; mi d or top step 74,605; maximum 84,895. Rail Vehicle Projects Manager; number of positions 1; minimum annual rate 68,235 ; mid or top step 82,953. Quality Assurance and Warranty Manager; number of positions 1; minimum annual ra te 63,115; mid or top step 76,676. Supervising Maintenance Instructor; number of positions 1; minimum annual rate 6 3,115; mid or top step 76,676. Associate Mechanical Engineer - Auto Systems; number of positions 2; minimum ann ual rate 61,824; mid or top step 75,121. Associate Systems Engineer; number of positions 1; minimum annual rate 61,824; m id or top step 75,121. Light Rail Station and Wayside Maintenance Supervisor: number of positions 1; mi nimum annual rate 55,573; mid or top step 64,465; maximum 73,357. Management Analyst; number of positions 3; minimum annual rate 55,573; mid or to p step 64,465; maximum 73,357. Light Rail Power Supervisor; number of positions 1; minimum annual rate 59,237; mid or top step 71,984. Transit Warranty Coordinator; number of positions 2; minimum annual rate 58,658; mid or top step 71,299. Communications Systems Analyst; number of positions 3; minimum annual rate 58,48 7; mid or top step 70,806. Facilities Maintenance Coordinator; number of positions 1; minimum annual rate 5 7,223; mid or top step 69,563. Light Rail Vehicle Maintenance Supervisor; number of positions 5; minimum annual rate 57,223; mid or top step 69,563.

Maintenance Instructor - Bus; number of positions 6; minimum annual rate 57,223; mid or top step 69,563. Maintenance Instructor - Light Rail; number of positions 3; minimum annual rate 57,223; mid or top step 69,563. Transit Maintenance Supervisor; number of positions 18; minimum annual rate 57,2 23; mid or top step 69,563. Vehicle Parts Supervisor; number of positions 5; minimum annual rate 57,223; mid or top step 69,563. Passenger Facilities Maintenance Supervisor; number of positions 1; minimum annu al rate 50,410; mid or top step 58,476; maximum 66,542. Light Rail Track Maintenance Supervisor; number of positions 1; minimum annual r ate 54,224; mid or top step 65,921. Quality Assurance and Warranty Specialist; number of positions 3; minimum annual rate 52,424; mid or top step 63,415. Light Rail Signal Maintainer; number of positions 14; minimum annual rate 52,167 ; mid or top step 63,115. Engineering Technician III; number of positions 1; minimum annual rate 51,674; m id or top step 62,536. Overhead Line Worker; number of positions 9; minimum annual rate 54,121; mid or top step 61,505. Substation Maintainer; number of positions 8; minimum annual rate 54,121; mid or top step 61,505. Non-revenue Vehicle Coordinator; number of positions 1; minimum annual rate 49,9 17; mid or top step 60,694. Administrative Support Officer; number of positions 1; minimum annual rate 45,71 8; mid or top step 53,034; maximum 60,348. Janitor Supervisor; number of positions 1; minimum annual rate 45,718; mid or to p step 53,034; maximum 60,348. Foreperson - L R T; number of positions 6; minimum annual rate 52,707; mid or to p step 59,904. Overhaul and Repair Foreperson; number of positions 3; minimum annual rate 52,70 7; mid or top step 59,904. Paint and Body Foreperson; number of positions 1; minimum annual rate 52,707; mi d or top step 59,904. Paint and Body Foreperson - L R T; number of positions 1; minimum annual rate 52 ,707; mid or top step 59,904. Transit Foreperson; number of positions 13; minimum annual rate 52,707; mid or t op step 59,904. Upholstery Foreperson; number of positions 1; minimum annual rate 52,707; mid or top step 59,904.

Parts Foreperson; number of positions 1; minimum annual rate 51,022; mid or top step 57,990. Executive Secretary; number of positions 1; minimum annual rate 43,554; mid or t op step 50,523; maximum 57,492. Electronic Technician - L R T; number of positions 5; minimum annual rate 49,046 ; mid or top step 55,723. Electro - Mechanic; number of positions 50; minimum annual rate 48,526; mid or t op step 55,140. Overhaul and Repair Mechanic; number of positions 41; minimum annual rate 48,526 ; mid or top step 55,140. Paint and Body Worker; number of positions 15; minimum annual rate 48,526; mid o r top step 55,140. Paint and Body Worker - L R T; number of positions 13; minimum annual rate 48,52 6; mid or top step 55,140. Transit Mechanic; number of positions 135; minimum annual rate 48,526; mid or to p step 55,140. Upholsterer; number of positions 9; minimum annual rate 48,526; mid or top step 55,140. Facilities Maintenance Representative; number of positions 5; minimum annual rat e 45,418; mid or top step 54,973. Office Management Coordinator; number of positions 1; minimum annual rate 39,505 ; mid or top step 45,826; maximum 52,147. Office Support Supervisor; number of positions 1; minimum annual rate 37,620; mi d or top step 43,639; maximum 49,659. Management Secretary; number of positions 4; minimum annual rate 37,620; mid or top step 43,639; maximum 49,659. Support Mechanic; number of positions 5; minimum annual rate 34,507; mid or top step 49,296. Senior Track Worker; number of positions 7; minimum annual rate 33,696; mid or t op step 48,131. Service Mechanic; number of positions 47; minimum annual rate 33,238; mid or top step 47,486. Vehicle Maintenance Scheduler; number of positions 6; minimum annual rate 38,884 ; mid or top step 46,961. Parts Clerk - Bus; number of positions 29; minimum annual rate 32,718; mid or to p step 46,737. Parts Clerk - L R T; number of positions 8; minimum annual rate 32,718; mid or t op step 46,737. Materials Resource Scheduler; number of positions 5; minimum annual rate 37,963; mid or top step 45,868.

Service Worker - Bus; number of positions 90; minimum annual rate 32,011; mid or top step 45,739. Service Worker - L R T; number of positions 16; minimum annual rate 32,011; mid or top step 45,739. Track Worker; number of positions 7; minimum annual rate 32,011; mid or top step 45,739. General Maintenance Mechanic; number of positions 1; minimum annual rate 37,084; mid or top step 44,819. Senior Utility Worker; number of positions 1; minimum annual rate 35,392; mid or top step 42,740. Secretary; number of positions 1; minimum annual rate 33,614; mid or top step 40 ,577. Lead Maintenance Worker - L R T; number of positions 7; minimum annual rate 28,3 71; mid or top step 40,518. Facilities Maintenance Assistant; number of positions 1; minimum annual rate 33, 142; mid or top step 40,019. Bus Stop Maintenance Worker; number of positions 17; minimum annual rate 32,971; mid or top step 39,805. Account Clerk II; number of positions 7; minimum annual rate 32,221; mid or top step 38,884. Utility Worker; number of positions 2; minimum annual rate 32,221; mid or top st ep 38,884. Maintenance Worker - L R T; number of positions 19; minimum annual rate 27,019; mid or top step 38,604. Office Specialist II; number of positions 17; minimum annual rate 31,600; mid or top step 38,156. Transit Facilities Worker - Bus; number of positions 28; minimum annual rate 26, 228; mid or top step 37,460. Transit Facilities Worker - L R T; number of positions 7; minimum annual rate 26 ,228; mid or top step 37,460. Automotive Attendant; number of positions 1; minimum annual rate 30,593; mid or top step 36,913. Janitor; number of positions 9; minimum annual rate 29,350; mid or top step 35,3 92. Electronic Technician - System; number of positions 1; minimum annual rate 49,04 6; mid or top step 55,723. Mechanic Intern; number of positions 12; Variable rates. Total of number of positions 771. FISCAL RESOURCES: Chief Financial Officer; number of positions 1; minimum annual rate 121,259; mid

or top step 140,661; maximum 160,063.

Chief Information Officer; number of positions 1; minimum annual rate 99,771; mi d or top step 115,735; maximum 131,698. Deputy Director, Fiscal Resources; number of positions 1; minimum annual rate 95 ,015; mid or top step 110,217; maximum 125,420. Information Services Manager; number of positions 1; minimum annual rate 82,075; mid or top step 95,207; maximum 108,339. Purchasing and Materials Manager; number of positions 1; minimum annual rate 82, 075; mid or top step 95,207; maximum 108,339. Risk Manager; number of positions 1; minimum annual rate 82,075; mid or top step 95,207; maximum 108,339. Project Systems Manager; number of positions 1; minimum annual rate 82,075; mid or top step 95,207; maximum 108,339. Fiscal Resources Manager; number of positions 4; minimum annual rate 82,075; mid or top step 95,207; maximum 108,339. Contracts Manager; number of positions 1; minimum annual rate 70,892; mid or top step 82,234; maximum 93,577. Claims Supervisor; number of positions 1; minimum annual rate 64,314; mid or top step 74,605; maximum 84,895. Environmental Health and Safety Supervisor; number of positions 2; minimum annua l rate 64,314; mid or top step 74,605; maximum 84,895. Information Systems Supervisor; number of positions 6; minimum annual rate 64,31 4; mid or top step 74,605; maximum 84,895. Investment Program Manager; number of positions 1; minimum annual rate 64,314; m id or top step 74,605; maximum 84,895. Purchasing Supervisor; number of positions 1; minimum annual rate 64,314; mid or top step 74,605; maximum 84,895. Revenue Services Manager; number of positions 1; minimum annual rate 64,314; mid or top step 74,605; maximum 84,895. Senior Accountant; number of positions 8; minimum annual rate 64,314; mid or top step 74,605; maximum 84,895. Senior Construction Contracts Administrator; number of positions 4; minimum annu al rate 64,314; mid or top step 74,605; maximum 84,895. Senior Contracts Administrator; number of positions 2; minimum annual rate 64,31 4; mid or top step 74,605; maximum 84,895. Senior Internal Auditor; number of positions 3; minimum annual rate 64,314; mid or top step 74,605; maximum 84,895. Senior Management Analyst; number of positions 3; minimum annual rate 64,314; mi d or top step 74,605; maximum 84,895.

Accountant III; number of positions 12; minimum annual rate 55,573; mid or top s tep 64,465; maximum 73,357. Claims Analyst; number of positions 3; minimum annual rate 55,573; mid or top st ep 64,465; maximum 73,357. Associate Auditor; number of positions 1; minimum annual rate 55,573; mid or top step 64,465; maximum 73,357. Management Analyst; number of positions 5; minimum annual rate 55,573; mid or to p step 64,465; maximum 73,357. Financial Analyst; number of positions 3; minimum annual rate 55,573; mid or top step 64,465; maximum 73,357. Financial Analyst - N R; number of positions 1; minimum annual rate 55,573; mid or top step 64,465; maximum 73,357. Data Base Administrator; number of positions 4; minimum annual rate 58,487; mid or top step 70,806. Financial Information Systems Specialist; number of positions 1; minimum annual rate 58,487; mid or top step 70,806. Senior Information Systems Analyst; number of positions 12; minimum annual rate 58,487; mid or top step 70,806. Senior Programmer Analyst; number of positions 4; minimum annual rate 58,487; mi d or top step 70,806. UNIX Systems Administrator; number of positions 1; minimum annual rate 58,487; m id or top step 70,806. Construction Contracts Administrator II; number of positions 9; minimum annual r ate 58,209; mid or top step 70,442. Contracts Administrator II; number of positions 11; minimum annual rate 58,209; mid or top step 70,442. Environmental Health and Safety Specialist; number of positions 2; minimum annua l rate 55,252; mid or top step 66,821. Information Systems Analyst II; number of positions 15; minimum annual rate 50,1 96; mid or top step 60,737. Programmer Analyst III; number of positions 7; minimum annual rate 50,196; mid o r top step 60,737. Business Systems Analyst II; number of positions 3; minimum annual rate 50,196; mid or top step 60,737. Buyer III; number of positions 3; minimum annual rate 49,960; mid or top step 60 ,458. Administrative Support Officer; number of positions 2; minimum annual rate 45,71 8; mid or top step 53,034; maximum 60,348. Transit Safety Representative; number of positions 3; minimum annual rate 45,718 ; mid or top step 53,034; maximum 60,348. Executive Secretary; number of positions 3; minimum annual rate 43,554; mid or t

op step 50,523; maximum 57,492. Supervising Account Clerk; number of positions 1; minimum annual rate 43,554; mi d or top step 50,523; maximum 57,492. Buyer II; number of positions 4; minimum annual rate 44,990; mid or top step 54, 459. Supervising Vault Room Worker; number of positions 1; minimum annual rate 39,505 ; mid or top step 45,826; maximum 52,147. Accountant I; number of positions 2; minimum annual rate 42,141; mid or top step 50,946. Business Systems Analyst 1; number of positions 1; minimum annual rate 41,541; m id or top step 50,196. Office Support Supervisor; number of positions 1; minimum annual rate 37,620; mi d or top step 43,639; maximum 49,659. Management Secretary; number of positions 5; minimum annual rate 37,620; mid or top step 43,639; maximum 49,659. Administrative Services Assistant III; number of positions 3; minimum annual rat e 34,128; mid or top step 39,588; maximum 45,049. Accountant Assistant; number of positions 2; minimum annual rate 35,221; mid or top step 42,547. Buyer Assistant; number of positions 5; minimum annual rate 34,406; mid or top s tep 41,541. Buyer Assistant (U); number of positions 1; minimum annual rate 34,406; mid or t op step 41,541. Secretary; number of positions 1; minimum annual rate 33,614; mid or top step 40 ,577. Storekeeper; number of positions 2; minimum annual rate 33,464; mid or top step 40,384. Account Clerk II; number of positions 22; minimum annual rate 32,221; mid or top step 38,884. Office Specialist II; number of positions 8; minimum annual rate 31,600; mid or top step 38,156. Vault Room Worker; number of positions 4; minimum annual rate 30,871; mid or top step 37,256. Messenger Driver; number of positions 4; minimum annual rate 30,164; mid or top step 36,399. SAP QA Manager; number of positions 1; Rates To Be Determined. Total of number of positions 217. HUMAN RESOURCES: Director, Human Resources; number of positions 1; minimum annual rate 115,475; m

id or top step 133,951; maximum 152,427. Human Resources Manager; number of positions 4; minimum annual rate 82,075; mid or top step 95,207; maximum 108,339. Senior Human Resources Analyst; number of positions 8; minimum annual rate 64,31 4; mid or top step 74,605; maximum 84,895. Light Rail Technical Training Supervisor; number of positions 1; minimum annual rate 63,115; mid or top step 76,676. Technical Training Supervisor; number of positions 1; minimum annual rate 63,115 ; mid or top step 76,676. Human Resources Analyst; number of positions 25; minimum annual rate 55,573; mid or top step 64,465; maximum 73,357. Org Development and Training Specialist; number of positions 8; minimum annual r ate 55,573; mid or top step 64,465; maximum 73,357. Technical Trainer; number of positions 10; minimum annual rate 57,223; mid or to p step 69,563. Light Rail Technical Trainer; number of positions 5; minimum annual rate 57,223; mid or top step 69,563. Personnel Services Administrator; number of positions 1; minimum annual rate 50, 410; mid or top step 58,476; maximum 66,542. Executive Secretary; number of positions 1; minimum annual rate 43,554; mid or t op step 50,523; maximum 57,492. Office Management Coordinator; number of positions 1; minimum annual rate 39,505 ; mid or top step 45,826; maximum 52,147. Office Support Supervisor; number of positions 1; minimum annual rate 37,620; mi d or top step 43,639; maximum 49,659. Management Secretary; number of positions 4; minimum annual rate 37,620; mid or top step 43,639; maximum 49,659. Personnel Services Assistant; number of positions 10; minimum annual rate 35,820 ; mid or top step 41,552; maximum 47,283. Administrative Services Assistant III; number of positions 12; minimum annual ra te 34,128; mid or top step 39,588; maximum 45,049. Office Specialist II; number of positions 6; minimum annual rate 31,600; mid or top step 38,156. Operator - Trainee; number of positions 27; minimum annual rate 30,492. Total number of positions 126. PLANNING and DEVELOPMENT: Director, Planning and Development; number of positions 1; minimum annual rate 1 15,475; mid or top step 133,951; maximum 152,427. Facilities Design and Construction Manager; number of positions 1; minimum annua

l rate 82,075; mid or top step 95,207; maximum 108,339. Real Estate Manager; number of positions 1; minimum annual rate 78,154; mid or t op step 90,659; maximum 103,164. Manager, Planning and Programming; number of positions 1; minimum annual rate 74 ,448; mid or top step 86,360; maximum 98,271. Facilities Design Manager; number of positions 1; minimum annual rate 74,448; mi d or top step 86,360; maximum 98,271. Environmental Program Manager; number of positions 1; minimum annual rate 67,528 ; mid or top step 78,333; maximum 89,137. Principal Transportation Planner-Programming and Grants; number of positions 1; minimum annual rate 67,528; mid or top step 78,333; maximum 89,137. Principal Transportation Planner; number of positions 3; minimum annual rate 67, 528; mid or top step 78,333; maximum 89,137. Senior Real Estate Agent; number of positions 3; minimum annual rate 67,528; mid or top step 78,333; maximum 89,137. Senior Architect; number of positions 1; minimum annual rate 72,307; mid or top step 87,881. Senior Cost Coordinator; number of positions 1; minimum annual rate 72,307; mid or top step 87,881. Senior Facilities Engineer; number of positions 1; minimum annual rate 72,307; m id or top step 87,881. Senior Transportation Engineer; number of positions 1; minimum annual rate 72,30 7; mid or top step 87,881. Senior Transportation Planner; number of positions 3; minimum annual rate 64,314 ; mid or top step 74,605; maximum 84,895. Senior Transportation Planner - Programming and Grants; number of positions 3; m inimum annual rate 64,314; mid or top step 74,605; maximum 84,895. Associate Architect; number of positions 3; minimum annual rate 61,824; mid or t op step 75,121. Associate Civil Engineer; number of positions 2; minimum annual rate 61,824; mid or top step 75,121. Associate Electrical Engineer; number of positions 1; minimum annual rate 61,824 ; mid or top step 75,121. Associate Environmental Engineer; number of positions 1; minimum annual rate 61, 824; mid or top step 75,121. Associate Mechanical Engineer; number of positions 2; minimum annual rate 61,824 ; mid or top step 75,121. Schedule Coordinator; number of positions 1; minimum annual rate 61,824; mid or top step 75,121. Management Analyst; number of positions 1; minimum annual rate 55,573; mid or to

p step 64,465; maximum 73,357. Environmental Analyst III; number of positions 5; minimum annual rate 59,344; mi d or top step 71,834. Transportation Planner III; number of positions 6; minimum annual rate 59,344; m id or top step 71,834. Senior Environmental Analyst; number of positions 1; minimum annual rate 58,380; mid or top step 70,934. Senior Construction Inspector; number of positions 1; minimum annual rate 54,459 ; mid or top step 65,878. Associate Real Estate Agent; number of positions 4; minimum annual rate 54,202; mid or top step 65,600. Assistant Architect; number of positions 1; minimum annual rate 53,124; mid or t op step 64,601. Assistant Civil Engineer; number of positions 3; minimum annual rate 53,124; mid or top step 64,601. Engineering Technician III; number of positions 4; minimum annual rate 51,674; m id or top step 62,536. Document Production Supervisor; number of positions 1; minimum annual rate 49,91 7; mid or top step 60,694. Administrative Support Officer II; number of positions 1; minimum annual rate 45 ,718; mid or top step 53,034; maximum 60,348. Construction Inspector; number of positions 1; minimum annual rate 49,489; mid o r top step 59,880. Executive Secretary; number of positions 1; minimum annual rate 43,554; mid or t op step 50,523; maximum 57,492. Engineering Technician II; number of positions 2; minimum annual rate 45,418; mi d or top step 54,973. Office Management Coordinator; number of positions 1; minimum annual rate 39,505 ; mid or top step 45,826; maximum 52,147. Accountant I; number of positions 1; minimum annual rate 42,141; mid or top step 50,946. Transportation Planner I; number of positions 1; minimum annual rate 41,348; mid or top step 49,960. Office Support Supervisor; number of positions 2; minimum annual rate 37,620; mi d or top step 43,639; maximum 49,659. Board Clerk; number of positions 1; minimum annual rate 35,713; mid or top step 43,126. Accountant Assistant; number of positions 2; minimum annual rate 35,221; mid or top step 42,547. Secretary; number of positions 2; minimum annual rate 33,614; mid or top step 40

,577. Copy Center Operator II; number of positions 6; minimum annual rate 31,600; mid or top step 38,156. Document Control Clerk II; number of positions 7; minimum annual rate 31,600; mi d or top step 38,156. Office Specialist II; number of positions 8; minimum annual rate 31,600; mid or top step 38,156. Grants Coordinator; number of positions 1; Rates To Be Determined. Total number of positions 97. RAIL DESIGN and CONSTRUCTION: Director, Rail Design and Construction; number of positions 1; minimum annual ra te 140,370; mid or top step 162,829; maximum 185,288. Deputy Director, Rail Design and Construction; number of positions 1; minimum an nual rate 99,771; mid or top step 115,735; maximum 131,698. Design and Construction Manager - Vasona Corridor; number of positions 1; minimu m annual rate 82,075; mid or top step 95,207; maximum 108,339. Design and Construction Manager - Rail Ext (U); number of positions 1; minimum a nnual rate 82,075; mid or top step 95,207; maximum 108,339. Systems Design Manager; number of positions 1; minimum annual rate 82,075; mid o r top step 95,207; maximum 108,339. Business Relations Manager; number of positions 1; minimum annual rate 78,154; m id or top step 90,659; maximum 103,164. Manager - Construction Inspection; number of positions 1; minimum annual rate 74 ,448; mid or top step 86,360; maximum 98,271. Transportation Engineering Manager; number of positions 1; minimum annual rate 7 4,448; mid or top step 86,360; maximum 98,271. Principal Construction Inspector; number of positions 3; minimum annual rate 67, 528; mid or top step 78,333; maximum 89,137. Survey Manager; number of positions 1; minimum annual rate 67,528; mid or top st ep 78,333; maximum 89,137. Senior Transportation Planner; number of positions 1; minimum annual rate 64,314 ; mid or top step 74,605; maximum 84,895. Utilities Coordination Manager; number of positions 2; minimum annual rate 64,31 4; mid or top step 74,605; maximum 84,895. Senior Systems Design Engineer; number of positions 1; minimum annual rate 72,30 7; mid or top step 87,881. Senior Transportation Engineer; number of positions 5; minimum annual rate 72,30 7; mid or top step 87,881.

Field Survey Coordinator; number of positions 3; minimum annual rate 58,337; mid or top step 67,671; maximum 77,005. Associate Systems Design Engineer; number of positions 2; minimum annual rate 61 ,824; mid or top step 75,121. Associate Transportation Engineer; number of positions 5; minimum annual rate 61 ,824; mid or top step 75,121. Management Analyst; number of positions 1; minimum annual rate 55,573; mid or to p step 64,465; maximum 73,357. Senior Construction Inspector; number of positions 12; minimum annual rate 54,45 9; mid or top step 65,878. Assistant Transportation Engineer; number of positions 9; minimum annual rate 53 ,124; mid or top step 64,601. Engineering Technician III; number of positions 2; minimum annual rate 51,674; m id or top step 62,536. Construction Inspector; number of positions 17; minimum annual rate 49,489; mid or top step 59,880. Executive Secretary; number of positions 1; minimum annual rate 43,554; mid or t op step 50,523; maximum 57,492. Engineering Technician II; number of positions 2; minimum annual rate 45,418; mi d or top step 54,973. Office Support Supervisor; number of positions 2; minimum annual rate 37,620; mi d or top step 43,639; maximum 49,659. Engineering Technician I; number of positions 1; minimum annual rate 40,384; mid or top step 48,803. Engineering Aide; number of positions 8; minimum annual rate 36,913; mid or top step 44,604. Secretary; number of positions 1; minimum annual rate 33,614; mid or top step 40 ,577. Office Specialist II; number of positions 6; minimum annual rate 31,600; mid or top step 38,156. Total number of positions 93. MARKETING and CUSTOMER SERVICE: Director, Marketing and Customer Service; number of positions 1; minimum annual rate 104,742; mid or top step 121,500; maximum 138,259. Manager, Community Outreach; number of positions 1; minimum annual rate 74,448; mid or top step 86,360; maximum 98,271. Manager, Market Development; number of positions 1; minimum annual rate 74,448; mid or top step 86,360; maximum 98,271. Customer Service Manager; number of positions 1; minimum annual rate 64,314; mid or top step 74,605; maximum 84,895.

Senior Transportation Planner; number of positions 1; minimum annual rate 64,314 ; mid or top step 74,605; maximum 84,895. Community Outreach Program Manager; number of positions 2; minimum annual rate 5 8,337; mid or top step 67,671; maximum 77,005. Creative Services Program Manager; number of positions 1; minimum annual rate 58 ,337; mid or top step 67,671; maximum 77,005. Public Information Manager; number of positions 1; minimum annual rate 58,337; m id or top step 67,671; maximum 77,005. Sales Program Manager; number of positions 1; minimum annual rate 58,337; mid or top step 67,671; maximum 77,005. Management Analyst; number of positions 2; minimum annual rate 55,573; mid or to p step 64,465; maximum 73,357. Executive Secretary; number of positions 1; minimum annual rate 43,554; mid or t op step 50,523; maximum 57,492. Advertising Coordinator; number of positions 1; minimum annual rate 50,453; mid or top step 61,037. Public Communication Specialist I/II; number of positions 17; minimum annual rat e 50,453; mid or top step 61,037. Transit Customer Services Supervisor; number of positions 4; minimum annual rate 48,011; mid or top step 58,380. Graphic Designer I / II; number of positions 5; minimum annual rate 45,868; mid or top step 55,509. Senior Information Representative; number of positions 5; minimum annual rate 37 ,336; mid or top step 42,432. Secretary; number of positions 2; minimum annual rate 33,614; mid or top step 40 ,577. Information Services Representative; number of positions 34; minimum annual rate 26,998; mid or top step 38,563. Office Specialist II; number of positions 7; minimum annual rate 31,600; mid or top step 38,156. Total number of positions 88. CONGESTION MANAGEMENT and HIGHWAY PROGRAMS: Director, Congestion Management Program; number of positions 1; minimum annual r ate 115,475; mid or top step 133,951; maximum 152,427. Deputy Director, Highway Program; number of positions 1; minimum annual rate 99, 771; mid or top step 115,735; maximum 131,698. Manager, Programming and Highway Admin; number of positions 1; minimum annual ra te 74,448; mid or top step 86,360; maximum 98,271. Principal Transportation Planner; number of positions 1; minimum annual rate 67,

528; mid or top step 78,333; maximum 89,137. Senior Transportation Engineer; number of positions 3; minimum annual rate 72,30 7; mid or top step 87,881. Senior Management Analyst; number of positions 1; minimum annual rate 64,314; mi d or top step 74,605; maximum 84,895. Senior Transportation Planner ; number of positions 3; minimum annual rate 64,31 4; mid or top step 74,605; maximum 84,895. Associate Transportation Engineer; number of positions 1; minimum annual rate 61 ,824; mid or top step 75,121. Management Analyst; number of positions 4; minimum annual rate 55,573; mid or to p step 64,465; maximum 73,357. Transportation Planner III; number of positions 6; minimum annual rate 59,344; m id or top step 71,834. Executive Secretary; number of positions 2; minimum annual rate 43,554; mid or t op step 50,523; maximum 57,492. Transportation Planning Aide; number of positions 1; minimum annual rate 34,406; mid or top step 41,541. Office Specialist II; number of positions 1; minimum annual rate 31,600; mid or top step 38,156. Deputy Director, Congestion Mgmt Program; number of positions 1; Rates To Be Det ermined. Manager, Policy and Administration; number of positions 1; Rated To Be Determine d. Total number of positions 28. APPENDIX B Budgeted Positions by Division and Classification Wages and Benefits In thousands dollars: Fiscal Year 1999/2000 Actual 179,744; F iscal Year 2000/2001 Adopted Budget 190,822; Fiscal Year 2000/2001 Revised Budge t 188,014; Fiscal Year 2001/2002 Budget 211,649; Percent of change from Fiscal Y ear 2001 Revised is 12 point 6 percent. POSITIONS BY DIVISION in whole number: Office of General Manager: Fiscal Year 1999/2000 Actual 16; Fiscal Year 2000/200 1 Adopted Budget 23; Fiscal Year 2000/2001 Revised Budget 23; Fiscal Year 2001/2 002 Budget 24; Percent of change from Fiscal Year 2001 Revised is 4 point 3 perc ent. Office of General Counsel: Fiscal Year 1999/2000 Actual 7; Fiscal Year 2000/2001 Adopted Budget 8; Fiscal Year 2000/2001 Revised Budget 8; Fiscal Year 2001/2002 Budget 9; Percent of change from Fiscal Year 2001 Revised is 12 point 5 percent . Operations - Administration: Fiscal Year 1999/2000 Actual 62; Fiscal Year 2000/2 001 Adopted Budget 64; Fiscal Year 2000/2001 Revised Budget 65; Fiscal Year 2001 /2002 Budget 65; Percent of change from Fiscal Year 2001 Revised is 0 point 0 pe

rcent. Operations - Transportation (the 47 unfunded operator positions, originally inte nded for placeholder purposes, were removed from the FY 2001/2002 budget. The FY 2000/01 figures were revised accordingly): Fiscal Year 1999/2000 Actual 1,244; Fiscal Year 2000/2001 Adopted Budget 1,313; Fiscal Year 2000/2001 Revised Budget 1,319; Fiscal Year 2001/2002 Budget 1,345; Percent of change from Fiscal Year 2 001 Revised is 2 point 0 percent. Operations - Maintenance (the 8 unfunded Service Worker positions, originally in tended for placeholder purposes, were removed from the FY 2001/2002 budget. The FY 2000/01 figures were revised accordingly): Fiscal Year 1999/2000 Actual 607; Fiscal Year 2000/2001 Adopted Budget 710; Fiscal Year 2000/2001 Revised Budget 7 64; Fiscal Year 2001/2002 Budget 771; Percent of change from Fiscal Year 2001 Re vised is 0 point 9 percent. Fiscal Resources: Fiscal Year 1999/2000 Actual 209; Fiscal Year 2000/2001 Adopte d Budget 251; Fiscal Year 2000/2001 Revised Budget 212; Fiscal Year 2001/2002 Bu dget 217; Percent of change from Fiscal Year 2001 Revised is 2 point 4 percent. Planning and Development: Fiscal Year 1999/2000 Actual 65; Fiscal Year 2000/2001 Adopted Budget 83; Fiscal Year 2000/2001 Revised Budget 86; Fiscal Year 2001/20 02 Budget 97; Percent of change from Fiscal Year 2001 Revised is 2 point 8 perce nt. Rail Design and Construction: Fiscal Year 1999/2000 Actual 63; Fiscal Year 2000/ 2001 Adopted Budget 80; Fiscal Year 2000/2001 Revised Budget 81; Fiscal Year 200 1/2002 Budget 93; Percent of change from Fiscal Year 2001 Revised is 14 point 8 percent. Human Resources: Fiscal Year 1999/2000 Actual 101; Fiscal Year 2000/2001 Adopted Budget 123; Fiscal Year 2000/2001 Revised Budget 126; Fiscal Year 2001/2002 Bud get 126; Percent of change from Fiscal Year 2001 Revised is 0 point 0 percent. Marketing and Customer Service: Fiscal Year 1999/2000 Actual 72; Fiscal Year 200 0/2001 Adopted Budget 81; Fiscal Year 2000/2001 Revised Budget 82; Fiscal Year 2 001/2002 Budget 88; Percent of change from Fiscal Year 2001 Revised is 7 point 3 percent. Total Positions: Fiscal Year 1999/2000 Actual 2,446; Fiscal Year 2000/2001 Adopt ed Budget 2,736; Fiscal Year 2000/2001 Revised Budget 2,766; Fiscal Year 2001/20 02 Budget 2,835; Percent of change from Fiscal Year 2001 Revised is 2 point 5 pe rcent. POSITIONS BY CLASSIFICATION: Support Services: Fiscal Year 1999/2000 Actual 815; Fiscal Year 2000/2001 Adopte d Budget 989; Fiscal Year 2000/2001 Revised Budget 1,012; Fiscal Year 2001/2002 Budget 1,021; Percent of change from Fiscal Year 2001 Revised is 1 point 0 perce nt. Support Services (Part Time): Fiscal Year 1999/2000 Actual 0; Fiscal Year 2000/2 001 Adopted Budget 1; Fiscal Year 2000/2001 Revised Budget 0; Fiscal Year 2001/2 002 Budget 0; Percent of change from Fiscal Year 2001 Revised is 0 point 0 perce nt. Operators (the 47 unfunded operator positions, originally intended for placehol der purposes, were removed from the FY 2001/2002 budget. The FY 2000/01 figures were revised accordingly): Fiscal Year 1999/2000 Actual 1,085; Fiscal Year 2000/ 2001 Adopted Budget 1,118; Fiscal Year 2000/2001 Revised Budget 1,118; Fiscal Ye

ar 2001/2002 Budget 1,143; Percent of change from Fiscal Year 2001 Revised is 2 point 2 percent. Operators (Part Time): Fiscal Year 1999/2000 Actual 18; Fiscal Year 2000/2001 Ad opted Budget 50; Fiscal Year 2000/2001 Revised Budget 50; Fiscal Year 2001/2002 Budget 50; Percent of change from Fiscal Year 2001 Revised is 0 point 0 percent. Operator Trainees: Fiscal Year 1999/2000 Actual 21; Fiscal Year 2000/2001 Adopte d Budget 27; Fiscal Year 2000/2001 Revised Budget 27; Fiscal Year 2001/2002 Budg et 27; Percent of change from Fiscal Year 2001 Revised is 0 point 0 percent. Maintenance (the 8 unfunded Service Worker positions, originally intended for pl aceholder purposes, were removed from the FY 2001/2002 budget. The FY 2000/01 fi gures were revised accordingly): Fiscal Year 1999/2000 Actual 507; Fiscal Year 2 000/2001 Adopted Budget 551; Fiscal Year 2000/2001 Revised Budget 559; Fiscal Ye ar 2001/2002 Budget 594; Percent of change from Fiscal Year 2001 Revised is 6 po int 3 percent. Total Transit: Fiscal Year 1999/2000 Actual 2,446; Fiscal Year 2000/2001 Adopted Budget 2,736; Fiscal Year 2000/2001 Revised Budget 2,766; Fiscal Year 2001/2002 Budget 2,835; Percent of change from Fiscal Year 2001 Revised is 2 point 5 perc ent. Non Transit (includes employees from Congestion Management Program and Highway D ivision): Fiscal Year 1999/2000 Actual 17; Fiscal Year 2000/2001 Adopted Budget 21; Fiscal Year 2000/2001 Revised Budget 24; Fiscal Year 2001/2002 Budget 28; Pe rcent of change from Fiscal Year 2001 Revised is 16 point 7 percent. Total Employees: Fiscal Year 1999/2000 Actual 2,463; Fiscal Year 2000/2001 Adopt ed Budget 2,757; Fiscal Year 2000/2001 Revised Budget 2,790; Fiscal Year 2001/20 02 Budget 2,863; Percent of change from Fiscal Year 2001 Revised is 2 point 6 pe rcent. APPENDIX C Summary of Santa Clara County Population by Year Campbell: 1950, 9,720; 1960, 11,863; 1970, 24,731; 1980, 26,843; 1990, 36,048; 2 000, 40,850 Cupertino: 1950, 2,438; 1960, 3,664; 1970, 18,216; 1980, 34,297; 1990, 40,263; 2 000, 52,900. Gilroy: 1950, 4,951; 1960, 7,348; 1970, 12,665; 1980, 21,641; 1990, 31,487; 2000 , 40,150. Los Altos: 1950, NA; 1960, 19,696; 1970, 24,872; 1980, 25,769; 1990, 26,303; 200 0, 28,600. Los Altos Hills: 1950, NA; 1960, 3,412; 1970, 6,862; 1980, 7,421; 1990, 7,514; 2 000, 8,300. Los Gatos: 1950, 4,907; 1960, 9,036; 1970, 23,466; 1980, 26,906; 1990, 27,357; 2 000, 30,450. Milpitas: 1950, NA; 1960, 6,572; 1970, 27,149; 1980, 37,820; 1990, 50,686; 2000, 65,300. Monte Sereno: 1950, NA; 1960, 1,506; 1970, 3,074; 1980, 3,434; 1990, 3,287; 2000 , 3,470. Morgan Hill: 1950, 1,627; 1960, 3,151; 1970, 6,485; 1980, 17,060; 1990, 23,928; 2000, 33,100. Mountain View: 1950, 6,653; 1960, 30,889; 1970, 54,206; 1980, 58,655; 1990, 67,4 60; 2000, 76,000 Palo Alto: 1950, 25,475; 1960, 52,475; 1970, 55,999; 1980, 55,225; 1990, 55,900; 2000, 61,500. San Jose: 1950, 95,280; 1960, 204,196; 1970, 445,779; 1980, 629,400; 1990, 782,2 48; 2000, 923,600.

Santa Clara: 1950, 11,702; 1960, 58,880; 1970, 87,717; 1980, 87,700; 1990, 93,61 3; 2000, 102,900. Saratoga: 1950, 1,329; 1960, 14,861; 1970, 27,199; 1980, 29,261; 1990, 28,0616; 2000, 31,300. Sunnyvale: 1950, 9,829; 1960, 51,898; 1970, 95,408; 1980, 106,618; 1990, 117,229 ; 2000, 133,200 Unincorporated: 1950, 117,176; 1960, 162,056; 1970, 152,181; 1980, 127,021; 1990 , 106,193; 2000, 105,200. County Total: 1950, 290,547; 1960, 642,315; 1970, 1,066,009; 1980, 1,295,071; 19 90, 1,497,577; 2000, 1,736,820 Percent of Increase: 1960, 120 point 4; 1970, 66 point 2; 1980, 21 point 5; 1990 , 15 point 6; 2000, 16 point 0. California: 1950, 10,586,224; 1960, 15,717,204; 1970, 18,136,045; 1980, 23,668,1 45; 1990, 29,760,021; 2000, 34,336.000 As a percentage of California: 1950, 2 point 74; 1960, 4 point 09; 1970, 5 point 88; 1980, 5 point 47; 1990, 5 point 03; 2000, 5 point 06. Source: U.S. Census Bureau; California Department of Finance-Demographic Researc h Unit APPENDIX D Santa Clara Valley Transportation Authority V T A/ATU Pension Plan Fiscal Year 2001/2002 Expenditure Plan Dollars in thousands REVENUES: V T A Employer Contribution: Fiscal Year 1999/2000 Actual 17,524; Fiscal Year 20 00/2001 Expenditure Plan 6,404; Fiscal Year 2001/2002 Expenditure Plan 8,111. Interest Income: Fiscal Year 1999/2000 Actual 8,777; Fiscal Year 2000/2001 Expen diture Plan 16,000; Fiscal Year 2001/2002 Expenditure Plan 16,560. Net Appreciation (Depreciation) on Investments: Fiscal Year 1999/2000 Actual min us 7,267; Fiscal Year 2000/2001 Expenditure Plan 0; Fiscal Year 2001/2002 Expend iture Plan 0. Total Revenues: Fiscal Year 1999/2000 Actual 19,034; Fiscal Year 2000/2001 Expen diture Plan 22,404; Fiscal Year 2001/2002 Expenditure Plan 24,671. EXPENSES: Operating Expenses: Pension Payments to Retirees: Fiscal Year 1999/2000 Actual 5,764; Fiscal Year 20 00/2001 Expenditure Plan 6,102; Fiscal Year 2001/2002 Expenditure Plan 7,415. Medical/Psychiatric Evaluations: Fiscal Year 1999/2000 Actual 0; Fiscal Year 200 0/2001 Expenditure Plan 36; Fiscal Year 2001/2002 Expenditure Plan 48. Administrative Expenses (Includes estimate for salary data conversion of $464): Fiscal Year 1999/2000 Actual 653; Fiscal Year 2000/2001 Expenditure Plan 217; Fi scal Year 2001/2002 Expenditure Plan 725. Total Operating Expenses: Fiscal Year 1999/2000 Actual 6,417; Fiscal Year 2000/2 001 Expenditure Plan 6,355; Fiscal Year 2001/2002 Expenditure Plan 8,188. Contingencies: Fiscal Year 1999/2000 Actual 0; Fiscal Year 2000/2001 Expenditure Plan 5; Fiscal Year 2001/2002 Expenditure Plan 5.

Total Expenses: Fiscal Year 1999/2000 Actual 6,417; Fiscal Year 2000/2001 Expend iture Plan 6,360; Fiscal Year 2001/2002 Expenditure Plan 8,193. Surplus or Deficit to Reserves: Fiscal Year 1999/2000 Actual 12,617; Fiscal Year 2000/2001 Expenditure Plan 16,044; Fiscal Year 2001/2002 Expenditure Plan 16,47 8. Beginning Fund Balance: Fiscal Year 1999/2000 Actual 175,334; Fiscal Year 2000/2 001 Expenditure Plan 187,951; Fiscal Year 2001/2002 Expenditure Plan 203,995. Ending Fund Balance: Fiscal Year 1999/2000 Actual 187,951; Fiscal Year 2000/2001 Expenditure Plan 203,995; Fiscal Year 2001/2002 Expenditure Plan 220,473. APPENDIX E Santa Clara Valley Transportation Authority Fiscal Year 2001/2002 Capital Budget Summary NEW PROJECTS IN WHOLE DOLLARS A D A Passenger Access: Recommended Projects and Modifications 762,000; Recommen ded Project Budgets 762,000; Estimated Total Reimbursements 0; Projected Total N et V T A Project Costs is 762,000. Information Systems, Communications and Technology: Business Warehouse Data Extraction Tool: Recommended Projects and Modifications 350,000; Recommended Project Budgets 350,000; Estimated Total Reimbursements 0; Projected Total Net V T A Project Costs is 350,000. Business Warehouse Hardware Upgrade - Phase II: Recommended Projects and Modific ations 475,000; Recommended Project Budgets 475,000; Estimated Total Reimburseme nts 0; Projected Total Net V T A Project Costs is 475,000. Business Warehouse Reporting Tools: Recommended Projects and Modifications 150,0 00; Recommended Project Budgets 150,000; Estimated Total Reimbursements 0; Proje cted Total Net V T A Project Costs is 150,000. Exchange Mail Server: Recommended Projects and Modifications 70,000; Recommended Project Budgets 70,000; Estimated Total Reimbursements 0; Projected Total Net V T A Project Costs is 70,000. Internet Application Server: Recommended Projects and Modifications 40,000; Reco mmended Project Budgets 40,000; Estimated Total Reimbursements 0; Projected Tota l Net V T A Project Costs is 40,000. Internet Development Suite: Recommended Projects and Modifications 300,000; Reco mmended Project Budgets 300,000; Estimated Total Reimbursements 0; Projected Tot al Net V T A Project Costs is 300,000. I V R Phone System Replacement: Recommended Projects and Modifications 150,000; Recommended Project Budgets 150,000; Estimated Total Reimbursements 0; Projected Total Net V T A Project Costs is 150,000. River Oaks Telephone System Replacement: Recommended Projects and Modifications 150,000; Recommended Project Budgets 150,000; Estimated Total Reimbursements 0; Projected Total Net V T A Project Costs is 150,000. Voice Mail System Replacement: Recommended Projects and Modifications 90,000; Re commended Project Budgets 90,000; Estimated Total Reimbursements 0; Projected To tal Net V T A Project Costs is 90,000.

Total Information Systems, Communications and Technology: Recommended Projects a nd Modifications 1,775,000; Recommended Project Budgets 1,775,000; Estimated Tot al Reimbursements 0; Projected Total Net V T A Project Costs is 1,775,000. Non Revenue Vehicles (38): Recommended Projects and Modifications 951,750; Recom mended Project Budgets 951,750; Estimated Total Reimbursements 0; Projected Tota l Net V T A Project Costs is 951,750. Operating Equipment: Facilities and Equipment Emergency Repair Allowance: Recommended Projects and Mo difications 400,000; Recommended Project Budgets 400,000; Estimated Total Reimbu rsements 0; Projected Total Net V T A Project Costs is 400,000. Scheduled Maintenance Equipment Replacement: Recommended Projects and Modificati ons 410,000; Recommended Project Budgets 410,000; Estimated Total Reimbursements 0; Projected Total Net V T A Project Costs is 410,000. Woz Way Portable Crossover: Recommended Projects and Modifications 272,000; Reco mmended Project Budgets 272,000; Estimated Total Reimbursements 0; Projected Tot al Net V T A Project Costs is 272,000. Total Operating Equipment: Recommended Projects and Modifications 1,082,000; Rec ommended Project Budgets 1,082,000; Estimated Total Reimbursements 0; Projected Total Net V T A Project Costs is 1,082,000. Operating Facilities: Bus Stop Duckout and Pavement Restoration Program: Recommended Projects and Modi fications 810,000; Recommended Project Budgets 810,000; Estimated Total Reimburs ements 0; Projected Total Net V T A Project Costs is 810,000. Guadalupe Automatic Fire Suppression: Recommended Projects and Modifications 70, 000; Recommended Project Budgets 70,000; Estimated Total Reimbursements 0; Proje cted Total Net V T A Project Costs is 70,000. Guadalupe Vehicle Wash Modifications: Recommended Projects and Modifications 744 ,000; Recommended Project Budgets 744,000; Estimated Total Reimbursements 0; Pro jected Total Net V T A Project Costs is 744,000. L R T Drainage Improvements at Bayshore / Manila: Recommended Projects and Modif ications 400,000; Recommended Project Budgets 400,000; Estimated Total Reimburse ments 0; Projected Total Net V T A Project Costs is 400,000. Painting Management Program: Recommended Projects and Modifications 388,000; Rec ommended Project Budgets 388,000; Estimated Total Reimbursements 0; Projected To tal Net V T A Project Costs is 388,000. Pavement Management Program: Recommended Projects and Modifications 1,099,000; R ecommended Project Budgets 1,099,000; Estimated Total Reimbursements 0; Projecte d Total Net V T A Project Costs is 1,099,000. Roofing Management Program: Recommended Projects and Modifications 100,000; Reco mmended Project Budgets 100,000; Estimated Total Reimbursements 0; Projected Tot al Net V T A Project Costs is 100,000. Total Operating Facilities: Recommended Projects and Modifications 3,611,000; Re commended Project Budgets 3,611,000; Estimated Total Reimbursements 0; Projected Total Net V T A Project Costs is 3,611,000.

Passenger Facilities: De Anza College Transit Center: Recommended Projects and Modifications 3,767,000 ; Recommended Project Budgets 3,767,000; Estimated Total Reimbursements 0; Proje cted Total Net V T A Project Costs is 3,767,000. Guadalupe Escalator Retrofit: Recommended Projects and Modifications 100,000; Re commended Project Budgets 100,000; Estimated Total Reimbursements 0; Projected T otal Net V T A Project Costs is 100,000. Light Rail Shelter and Windscreen Retrofit - Phase 2: Recommended Projects and M odifications 3,500,000; Recommended Project Budgets 3,500,000; Estimated Total R eimbursements 0; Projected Total Net V T A Project Costs is 3,500,000. Total Passenger Facilities: Recommended Projects and Modifications 7,367,000; Re commended Project Budgets 7,367,000; Estimated Total Reimbursements 0; Projected Total Net V T A Project Costs is 7,367,000. Revenue Vehicles: 15 Expansion Buses: Recommended Projects and Modifications 4,900,000; Recommende d Project Budgets 4,900,000; Estimated Total Reimbursements 0; Projected Total N et V T A Project Costs is 4,900,000. 33 Replacement and 25 Expansion Buses: Recommended Projects and Modifications 20 ,440,000; Recommended Project Budgets 20,440,000; Estimated Total Reimbursements minus 9,739,946; Projected Total Net V T A Project Costs is 10,700,054. Emissions Retrofit of Bus Diesel Engines: Recommended Projects and Modifications 3,829,000; Recommended Project Budgets 3,829,000; Estimated Total Reimbursement s 0; Projected Total Net V T A Project Costs is 3,829,000. M T C Regional Express Bus Procurement: Recommended Projects and Modifications 5 ,344,980; Recommended Project Budgets 5,344,980; Estimated Total Reimbursements minus 5,344,980; Projected Total Net V T A Project Costs is 0. Total Revenue Vehicles: Recommended Projects and Modifications 34,513,980; Recom mended Project Budgets 34,513,980; Estimated Total Reimbursements minus 15,084,9 26; Projected Total Net V T A Project Costs is 19,429,054. Caltrain Capital Contribution: Recommended Projects and Modifications 5,734,000; Recommended Project Budgets 5,734,000; Estimated Total Reimbursements 0; Projec ted Total Net V T A Project Costs is 5,734,000. Other: Cafeteria Equipment Replacement: Recommended Projects and Modifications 13,000; Recommended Project Budgets 13,000; Estimated Total Reimbursements 0; Projected Total Net V T A Project Costs is 13,000. Office Furniture: Recommended Projects and Modifications 367,000; Recommended Pr oject Budgets 367,000; Estimated Total Reimbursements 0; Projected Total Net V T A Project Costs is 367,000. Rail Systems Design Consultant Services: Recommended Projects and Modifications 5,000,000; Recommended Project Budgets 5,000,000; Estimated Total Reimbursements 0; Projected Total Net V T A Project Costs is 5,000,000. Surveying GPS System: Recommended Projects and Modifications 104,000; Recommende

d Project Budgets 104,000; Estimated Total Reimbursements 0; Projected Total Net V T A Project Costs is 104,000. Total Other: Recommended Projects and Modifications 5,484,000; Recommended Proje ct Budgets 5,484,000; Estimated Total Reimbursements 0; Projected Total Net V T A Project Costs is 5,484,000. Total New Projects: Recommended Projects and Modifications 61,280,730; Recommend ed Project Budgets 61,280,730; Estimated Total Reimbursements minus 15,084,926; Projected Total Net V T A Project Costs is 46,195,804. AUGMENTED PROJECTS IN WHOLE DOLLARS: Bus Service Expansion: Cerone Complex Rehabilitation and Expansion (This represents the first three yea rs of costs for this project. The total estimated budget for this six-year proje ct is $85,530,000): Approved Project Budgets 14,548,652; Recommended Projects an d Modifications 22,638,675; Recommended Project Budgets 37,187,327; Estimated To tal Reimbursements minus 11,990,041; Projected Total Net V T A Project Costs is 25,197,286. Total Bus Service Expansion: Approved Project Budgets 14,548,652; Recommended Pr ojects and Modifications 22,638,675; Recommended Project Budgets 37,187,327; Est imated Total Reimbursements minus 11,990,041; Projected Total Net V T A Project Costs is 25,197,286. Information Systems, Communications and Technology: Transit Facilities C C T V Demonstration Project: Approved Project Budgets 60,00 0; Recommended Projects and Modifications 440,000; Recommended Project Budgets 5 00,000; Estimated Total Reimbursements 0; Projected Total Net V T A Project Cost s is 500,000. Total Information Systems, Communications and Technology: Approved Project Budge ts 60,000; Recommended Projects and Modifications 440,000; Recommended Project B udgets 500,000; Estimated Total Reimbursements 0; Projected Total Net V T A Proj ect Costs is 500,000. Passenger Facilities: Elevator Floor Replacement: Approved Project Budgets 86,280; Recommended Project s and Modifications 335,000; Recommended Project Budgets 421,280; Estimated Tota l Reimbursements 0; Projected Total Net V T A Project Costs is 421,280. Guadalupe L R T Platform Retrofit: Approved Project Budgets 843,000; Recommended Projects and Modifications 37,466,000; Recommended Project Budgets 38,309,000; Estimated Total Reimbursements 0; Projected Total Net V T A Project Costs is 38, 309,000. Total Passenger Facilities: Approved Project Budgets 929,280; Recommended Projec ts and Modifications 37,801,000; Recommended Project Budgets 38,730,280; Estimat ed Total Reimbursements 0; Projected Total Net V T A Project Costs is 38,730,280 . Revenue Vehicles: Zero Emission Bus Demonstration Project: Approved Project Budgets 3,320,000; Rec ommended Projects and Modifications 15,130,000; Recommended Project Budgets 18,4 50,000; Estimated Total Reimbursements minus 18,450,000; Projected Total Net V T

A Project Costs is 0. Total Rail Expansion: Approved Project Budgets 3,320,000; Recommended Projects a nd Modifications 15,130,000; Recommended Project Budgets 18,450,000; Estimated T otal Reimbursements minus 18,450,000; Projected Total Net V T A Project Costs is 0. Total Augmented Projects: Approved Project Budgets 18,857,932; Recommended Proje cts and Modifications 76,009,675; Recommended Project Budgets 94,867,607; Estima ted Total Reimbursements minus 30,440,041; Projected Total Net V T A Project Cos ts is 64,427,566. APPENDIX F Santa Clara Valley Transportation Authority Fiscal Year 2001/2002 Budget Purchase of Non Revenue Vehicles (N R V's) 30 Passenger Vehicles, cost 597,150 dollars 8 Heavy Duty and Specialized vehicles, cost 354,600 dollars 38 Total, purchase cost 951,750 dollars REPLACEMENTS: Passenger Vehicles: 8 Sedans, cost 144,000 dollars 4 Full Cargo Vans, cost 96,600 dollars 3 Mini Cargo Vans, cost 61,500 dollars 4 Mini Passenger Vans, cost 93,000 dollars 1 Station Wagon, cost 22,050 dollars 20 Total Passenger Vehicles, cost 417,150 dollars Heavy Duty and Specialized Vehicles: 2 Crew Cab Trucks, cost 93,000 dollars 1 Full Size Truck, cost 37,800 dollars 3 Total Heavy Duty and Specialized Vehicles, cost 130,800 dollars 23 TOTAL REPLACEMENTS, COST 547,950 DOLLARS ADDITIONS: Passenger Vehicles: 10 Sedans, cost 180,000 dollars 10 Total Passenger Vehicles, cost 180,000 dollars Heavy Duty and Specialized Vehicles: 2 Unimog High Rail Gear, cost 80,000 dollars 1 Full Size Truck, cost 37,800 dollars 1 Crew Cab Truck, cost 31,000 dollars 1 Bucket Truck, cost 75,000 dollars 5 Total Heavy Duty and Specialized Vehicles, cost 223,800 dollars 15 TOTAL ADDITIONS, COST 403,800 DOLLARS APPENDIX G Santa Clara Valley Transportation Authority Fee Schedules BASIC FARE STRUCTURE FOR BUS, LIGHT RAIL AND PARATRANSIT SERVICES Adult Fares: Fare Category Fare Category Fare Category Fare Category Adult Adult Adult Adult Single Ride Fare $1.25 Day Pass Fare $3.00 10 Tokens Fare $10.00 Monthly Pass Fare $39.00

Fare Category Adult Annual Pass Fare $429.00 Youth Fares: Fare Category Youth Single Ride Fare $0.70 Fare Category Youth Day Pass Fare $1.75 Fare Category Youth 10 Tokens Fare $5.50 Fare Category Youth Monthly Pass Fare $22.00 Fare Category Youth Annual Pass Fare $242.00 Senior/Disabled Fares: Fare Category Senior/Disabled Single Ride Fare $0.40 Fare Category Senior/Disabled Day Pass Fare $1.00 Fare Category Senior/Disabled Monthly Pass Fare $9.00 Fare Category Senior/Disabled Annual Pass Fare $99.00 Express Fares: Fare Category Express Single Ride Fare $2.00 Fare Category Express Day Pass Fare $5.00 Fare Category Express Monthly Pass Fare $63.00 Fare Category Express Annual Pass Fare $693.00 Paratransit Fares: Fare Category Paratransit One Way Fare $2.50 Fare Category Paratransit Open Return Trip Fare $4.70 Fare Category Paratransit No Show Charge Fare $2.50 Fare Category Paratransit No Show, Return Trip Fare $12.00 Personal Care Attendant No Charge Same-Day Service $10.00 Companion-One Way Trip $2.50 Rates for Plan Sheets, Bid Sheets and Specifications (Consistent with standard p ractice, this concerns the sale of documents and records to individuals and cont ractors who have projects that impact V T A) Sale of Plan Sheets $10.00 per sheet Sale of Bid Plans or Specifications $2.00 per item Permit Fee Schedule (To protect V T A properties and facilities when construction activities are per formed on V T A properties and facilities by outside parties) Permit Application Fee (Minimum fee charged for all permit applications processe d. Additional fees may be assessed.) non refundable 255 dollars Light Rail Crossings, Plan Check and Inspection: Directional Bore Method per crossing 545 dollars Bore and Jack Method per crossing 805 dollars Bus and Transit Facility, Plan Check and Inspection: New P C C Bus Pad per pad 515 dollars New P C C Shelter Pad per site 280 dollars Material Lab Fee (If V T A provides service): 1,200 dollars for Standard P.C.C. Bus Pad (10 foot. by 50 foot.) includes: 1) Sub Base Compaction Tests 2) Material Analysis 3) Base Rock Compaction Tests and Material Analysis 4) 3 Concrete Cylinders or 2 Beams 450 dollars for Asphalt Testing per Location includes compaction test and materi al analysis (All re tests for failed compaction billed to contractor at 75 dolla rs per hour for lab related labor cost.) Other Construction Project Fees: (including sidewalk removal or replacement, curb and gutter removal or replaceme nt, trenching, etc.) All additional costs for labor and materials beyond that re quired above will be assessed based on site/scope specific requirements. Type ra tes as follow: Engineering Fees 55 dollars

Construction Inspector Fees 49 dollars Office Administrative Support 29 dollars Eco Pass Pricing Table These prices are based on the number of employees and the level of V T A service at a given work site. ECO passes are purchased for all full-time, permanent emp loyees at one discounted price per employee. These prices are prorated if an emp loyer joins the program mid-year. Downtown San Downtown San Downtown San Downtown San Downtown San Areas Served Areas Served s Areas Served dollars Areas Served 20 dollars Areas Served s Areas Served Areas Served Areas Served Areas Served Areas Served Jose: Jose Number of Employees 1 to 99, 80 dollars Jose Number of Employees 100 to 2,999, 60 dollars Jose Number of Employees 3,000 to 14,999,40 dollars Jose Number of Employees 15,000, 20 dollars by Bus and Light Rail Transit by Bus and Light Rail Transit Number of Employees 1 to 99,60 dollar by Bus and Light Rail Transit Number of Employees 100 to 2,999, 40 by Bus and Light Rail Transit Number of Employees 3,000 to 14,999, by Bus and Light Rail Transit Number of Employees 15,000, 10 dollar by by by by by Bus Bus Bus Bus Bus Only Only Only Only Only Number Number Number Number of of of of Employees Employees Employees Employees 1 to 99, 40 dollars 100 to 2,999, 20 dollars 3,000 to 14,999, 10 dollars 15,000, 5 dollars

There are two additional service options: Option I - Dumbarton and Highway 17 Express Downtown San Downtown San Downtown San Downtown San Areas Served Areas Served Areas Served Areas Served Areas Served Areas Served Areas Served Areas Served Jose Number of Employees 1 to 99, 92 dollars Jose Number of Employees 100 to 2,999, 70 dollars Jose Number of Employees 3,000 to 14,999, 48 dollars Jose Number of Employees 15,000, 25 dollars by Bus and L R T Number of Employees 1 to 99, 72 dollars by Bus and L R T Number of Employees 100 to 2,999, 50 dollars by Bus and L R T Number of Employees 3,000 to 14,999, 28 dollars by Bus and L R T Number of Employees 15,000, 15 dollars by Bus Only Number of Employees 1 to 99, 52 dollars by Bus Only Number of Employees 100 to 2,999, 30 dollars by Bus Only Number of Employees 3,000 to 14,999, 18 dollars by Bus Only Number of Employees 15,000, 10 dollars

Option II - Caltrain Eco Pass Pilot Program, Dumbarton and Highway 17 Express Downtown San Downtown San Downtown San Downtown San Areas Served Areas Served Areas Served Areas Served Areas Served Areas Served Areas Served Areas Served Jose Number of Employees 1 to 99, 165 dollars Jose Number of Employees 100 to 2,999, 105 dollars Jose Number of Employees 3,000 to 14,999, 65 dollars Jose Number of Employees 15,000, 40 dollars by Bus and L R T Number of Employees 1 to 99, 145 dollars by Bus and L R T Number of Employees 100 to 2,999, 85 dollars by Bus and L R T Number of Employees 3,000 to 14,999, 45 dollars by Bus and L R T Number of Employees 15,000, 30 dollars by Bus Only Number of Employees 1 to 99, 125 dollars by Bus Only Number of Employees 100 to 2,999, 65 dollars by Bus Only Number of Employees 3,000 to 14,999, 35 dollars by Bus Only Number of Employees 15,000, 25 dollars

RESIDENTIAL PASS PRICING - These prices are based on the number of residents and the level of V T A service at a given community. Eco passes are purchased for all residents at one discounted price. These prices are prorated if an employer joins the program mid-year. Downtown San Downtown San Downtown San Downtown San Areas Served Areas Served Areas Served Areas Served Areas Served Areas Served Areas Served Areas Served Jose Number of Residents 1 to 99, 80 dollars Jose Number of Residents 100 to 2,999, 60 dollars Jose Number of Residents 3,000 to 14,999, 40 dollars Jose Number of Residents 15,000 plus, 20 dollars by Bus and L R T Number of Residents 1 to 99, 60 dollars by Bus and L R T Number of Residents 100 to 2,999, 40 dollars by Bus and L R T Number of Residents 3,000 to 14,999, 20 dollars by Bus and L R T Number of Residents 15,000, 10 dollars by Bus Only Number of Residents 1 to 99, 40 dollars by Bus Only Number of Residents 100 to 2,999, 20 dollars by Bus Only Number of Residents 3,000 to 14,999, 10 dollars by Bus Only Number of Residents 15,000, 5 dollars

Communities can "upgrade" their Eco Pass to include Highway 17 and Dumbarton Exp ress Service. The additional service option must be purchased for all residents at the community. Downtown San Downtown San Downtown San Downtown San Areas Served Areas Served Areas Served Areas Served Areas Served Areas Served Areas Served Areas Served GLOSSARY Accrual Accounting A method of accounting where revenues are recognized in the accounting period in which they are earned and become measurable, and expenses are recognized in the period incurred, if measurable. A D A Americans with Disabilities Act. Federal civil rights legislation that, among o ther things, gives disabled persons the right to equal access to fixed route tra nsit service or to comparable paratransit service if they are unable to use fixe d route transit. Adopted Budget The official budget that has been adopted by V T A Board of Directors. Appropriation Legal authorization expressed by budget unit, fund, and cost group granted by th e Board to make expenditures and to incur obligations for specific purposes. Op erating appropriations are time period limited and must be expended or encumbere d within the time limits. Capital appropriations have no expiration. Articulated Bus A bus usually 55 feet or more in length that bends at a connecting point when th Jose Number of Residents 1 to 99, 92 dollars Jose Number of Residents 100 to 2,999, 70 dollars Jose Number of Residents 3,000 to 14,999, 48 dollars Jose Number of Residents 15,000, 25 dollars by Bus and L R T Number of Residents 1 to 99, 72 dollars by Bus and L R T Number of Residents 100 to 2,999, 50 dollars by Bus and L R T Number of Residents 3,000 to 14,999, 28 dollars by Bus and L R T Number of Residents 15,000, 15 dollars by Bus Only Number of Residents 1 to 99, 52 dollars by Bus Only Number of Residents 100 to 2,999, 30 dollars by Bus Only Number of Residents 3,000 to 14,999, 18 dollars by Bus Only Number of Residents 15,000, 10 dollars

e bus turns a corner. BAAQMD Bay Area Air Quality Management District. Commonly referred to as the "air dist rict," this agency regulates industry and employers to keep air pollution in che ck, and sponsors programs to clean the air in the San Francisco Bay Area. Bond Long-term debt issued by an agency to help finance new acquisitions of property, facilities, and equipment. Budget Unit An organizational unit is identical to a cost center. Capital Budget A portion of the annual budget that appropriates funds for the purchase of capit al equipment items or for capital projects. The capital budget includes funds f or capital equipment purchases, such as vehicles, construction of new facilities , office equipment, and machinery. They are distinguished from operating items due to their value (greater than 5,000 dollars) and projected useful life (great er than one year). Capital Project Expenditure for tangible long-lived assets, such as property and equipment used by V T A in its operations, which is expected to benefit future periods. Commuter Rail Local and regional passenger train service between a central city, its suburbs, or another central city. Caltrain is an example of commuter rail service. Cost Group V T A uses the following expenditure and cost-reduction cost groups such as labo r costs, non-labor costs, Caltrain contribution, A D A, A C E, debt service and revenues. They are the lowest units of budget funding control. Cost Recovery Ratio A measure of the proportion of transit operating expenses covered by non subsidy sources. It is calculated by dividing all of the transit operator's non subsid y revenues, such as fare box revenue, parking fees, and advertising fees, by the operator's total transit operating expense. Debt Service The amount of money required to pay interest and principal on V T A's borrowed f unds. Division An organizational entity consists of cost centers. Enterprise Fund A distinct fiscal entity whose resources are dedicated to a specific purpose, an d in which all resources and expenditures must balance. Expenditure appropriati ons may exceed revenues if an asset balance is available from the prior period. Fare Box Revenue The value of cash, tickets, and pass receipts given by passengers as payment for public transit rides. Fiscal Year Period of any 12 consecutive months used as an accounting period. V T A's fisca l year is July 1 through June 30.

F T A Federal Transit Administration, formerly the Urban Mass Transportation Administr ation (U M T A). F T A provides capital and operating funds to V T A. Fund A fiscal or accounting entity with a self-balancing set of accounts. A fund is established for the purpose of carrying on specific activities in accordance wit h specific limitations. Grants A contribution by a government or other organization to support a particular fun ction. Grants may be classified as either operational or capital, depending upo n the grantee. M T C Metropolitan Transportation Commission. M T C is recognized by the state as the Regional Transportation Planning Agency (R T P A) and by the federal government as the Metropolitan Planning Organization (M P O) for the nine counties in the San Francisco Bay Area. It has 19 commissioners, of which 14 are voting members appointed by local elected officials. In the five most populous counties, incl uding Santa Clara County, two commissioners are appointed - one by the county bo ard of supervisors and one by the cities selection committee in the county. In the four less populous counties, the cities nominate candidates to the board of supervisors, which appoints one. Two other voting members on M T C, to total 16 , represent the Association of Bay Area Governments (A B A G) and the San Franci sco Bay Conservation and Development Commission (B C D C). In addition, there a re three non-voting members on M T C, representing the state's Business, Transpo rtation and Housing Agency, the U S Department of Housing and Urban Development, and the U S Department of Transportation. Operating Budget A plan of expenditures and proposed sources of financing current service. The o perating budget does not include capital or reserves. Paratransit Comparable transportation service required by the Americans with Disabilities Ac t (A D A) of 1990 for individuals with disabilities who are unable to use fixedroute transportation systems. Reserves Amount of funding held back in order to meet probable or possible demands. S R T P Short-Range Transportation Plan. A document that catalogues operating statistic s for the transit system and projects future improvements that are scheduled ove r a ten-year time frame. The document includes capital and operating budgets. S T A State Transit Assistance. Half of the revenues annually budgeted through the st ate budget process for the Transportation Planning and Development Account (T P and D) are appropriated to the S T A Program. Funds are used for mass transit o perations, transit coordination projects, and transportation planning. These fu nds are apportioned to the regional transportation planning agencies according t o a formula based on population and annual transit operator revenues. T D A Transportation Development Act. An act passed by the state Legislature in 1972 allowing each county to elect to participate in a quarter-cent state sales tax p rogram for public transportation purposes. TDA sales tax revenues are apportion

ed by the state, through the regional transportation planning organizations, to each participating county based on the amount collected within that county.