SANTA CLARA VALLEY TRANSPORTATION AUTHORITY (VTA

)

RECOMMENDED BUDGET FISCAL YEAR JULY 1, 2002 through JUNE 30, 2003

2002 Board of Directors Ron Gonzales Chairperson VTA Board of Directors Mayor City of San Jose Jane P. Kennedy Vice-Chairperson VTA Board of Directors Council Member City of Campbell Blanca Alvarado Supervisor Santa Clara County Board of Supervisors Cindy Chavez Council Member City of San Jose David Cortese Council Member City of San Jose Pat Dando Council Member City of San Jose Don Gage Chairperson Santa Clara County Board of Supervisors Dena Mossar Vice Mayor City of Palo Alto Thomas Springer Mayor City of Gilroy

Judy Nadler Mayor City of Santa Clara Manuel Valerio Council Member City of Sunnyvale Forrest Williams Council Member City of San Jose Board Member Alternates Francis La Poll Mayor City of Los Altos Jim Lawson Council Member City of Milpitas Pete McHugh Supervisor Santa Clara County Board of Supervisors Joe Pirzynski Council Member Town of Los Gatos Ken Yeager Council Member City of San Jose Ex-Officio James Beall, Jr. Chairperson, Metropolitan Transportation Commission (MTC) John McLemore MTC Representative Council Member City of Santa Clara

General Manager Peter M. Cipolla General Counsel Suzanne Gifford Board Secretary Sandra Weymouth Chief Administrative Officer Kaye L. Evleth Chief Construction Officer Jack Collins Chief Development Officer Michael P. Evanhoe Chief Financial Officer Scott Buhrer Chief Operating Officer Frank T. Martin Controller Jerry Rosenquist Budget Department Victor Chan Liza Chuapoco Christine Huynh Pauline Man Jim McCutchen Linda Schwartz

TABLE OF CONTENTS General Manager’s Budget Message.......................................................................... I. Introduction Budget Resolution ............................................................................................. Executive Summary .......................................................................................... Vision, Mission, and Strategic Plan ................................................................. Current Operations............................................................................................ Page i

1 4 5 7

II.

Operating Budget Operating Budget............................................................................................... 15 Budget Policies, Practices, and Methodologies ............................................. 18 Major Budget Assumptions and Explanations............................................... 21 Division Budgets FY 2001-02 Accomplishments & FY 2002-03 Goals ....................................... Office of the General Manager ......................................................................... Office of the General Counsel .......................................................................... Operations: Administration ............................................................................................. Transportation ............................................................................................. Maintenance ................................................................................................. Administrative Services .................................................................................... Construction....................................................................................................... Development & Congestion Management ..................................................... Congestion Management Program and Highway Development Administration .……….………………………………….……………….. Planning & Development and Marketing & Customer Services ............ Fiscal Resources ................................................................................................ Other.................................................................................................................... 37 45 49 51 57 61 65 69 73 & 80 82 85 90

III.

IV.

Capital Budget Introduction........................................................................................................ 91 Capital Budget Schedule................................................................................... 92 Major Transit Capital Programs....................................................................... 93 1996 Measure B Transportation Improvement Program .............................. 98 2000 Measure A Transit Improvement Program ........................................... 106 Other Programs ................................................................................................. 108 Other Projects .................................................................................................... 109

Appendices: A. Employee Positions by Division and Pay Ranges ............................................. 113 B. Budgeted Positions by Division and Classification ......................................... 124 C. Population Data for Santa Clara County by City............................................. 125

D. Ten Year Summary of Santa Clara County Employment Information ...... 126 E. Projects Closed or Scope Reduced by Capital Improvement Program Oversight Committee ............................................................................................... 127 F. FY 2002-03 Capital Budget Summary ................................................................ 131 G. Additional Information on Non-Revenue Vehicle Purchase.......................... 134 H. FY 2002-03 ATU Pension Fund Expenditure Plan ........................................... 135 I. Fee Schedules.............................................................................................................. 136 Glossary ............................................................................................................................... 140

VTA FY 2002-03 BUDGET

______________________________________________________________________________ GENERAL MANAGER’S BUDGET MESSAGE

The economic situation in Silicon Valley and its impact on the Valley Transportation Authority’s (VTA) financial situation has proven to be very sobering. In spite of our best efforts, we are faced with a situation of presenting a budget proposal reflecting nearly 2% less in operating expenses than last year, a service reduction of approximately 5%, a fare increase of about l5% and, perhaps most disturbing, a reduction in our workforce. As we have indicated on several occasions, we hope to have bought ourselves some time, but it’s not much. If we don’t effectively address the situation over the next several months, we’ll be faced with an even more critical issue next year at this time. The answers won’t be simple to come by. It will require the commitment and best thinking of a comprehensive list of transportation and land use stakeholders not only locally, but also regionally and beyond. In the meantime, there are several actions we need to take within VTA both short term and long term. As mentioned by several members of the Board in recent discussions, it’s important for us to rethink how we deliver our service. What may have been appropriate a few years ago, may not be now? New techniques for service delivery have come into their own in recent years. Some services are simply no longer cost effective and we need to rethink how we can still meet the transportation needs of our constituents in an effective manner. In some instances, we’ve already begun this process. We’ve recently completed a comprehensive review of our ADA service. While we’re still in the early stages of analyzing this review, it is readily apparent that there are several efficiency opportunities that could be addressed while still effectively meeting the core transportation needs of this valued customer group. There are several other areas which we need to explore as soon as possible, beginning with a system-wide Comprehensive Operational Analysis (COA) which provides an in-depth review of our current ridership patterns and other service areas showing growth potential. This type of an analysis will look at service patterns and appropriate equipment or technology to serve those areas. This type of a study looks at the pros and cons of larger buses vs. small buses vs. vans. What and where are the best ways to effectively serve our major “trunk” lines and rail? Once again, for an overview like this to be effective, transportation and land use stakeholders must be an integral part of the process from the beginning. The outcome of a COA can have sweeping positive effects on the quality, quantity and efficiency of the transportation services provided. The initiation of a COA represents

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______________________________________________________________________________ one of a series of efforts designed to make VTA as cost efficient an operation as possible. Some of these efforts have already been completed, some are in process, some have yet to be identified, and they will. These are necessary actions, but must also be complemented by supplemental revenue sources if VTA will be able to deliver the type of transportation service our community expects. While this situation has consumed a great deal of our focus these past few months, there are still many bright spots in VTA’s picture. Our Operations Division has attained one of the highest levels of “percentage of service provided” at approximately 99.5%. This is a substantial improvement over where we were last year at this time, when we delivered 97.6% service. By late May, we will have moved North Operating Division into its new state-of – the-art operations and maintenance facility. This new facility was designed with the input of staff to specifically enhance the capabilities of an already proficient staff from the North Division which consistently leads VTA in their performance. While the newest, proven technology has been incorporated, it has been done so with a solid return-oninvestment in mind because we know that to reinvest in our assets and infrastructure is the intelligent choice. The new North Division will also be the initial home to VTA’s new fleet of lowfloor, articulated buses which will begin to arrive in late Spring and which will be incorporated on Line 22 this Summer. They will be joined by low-floor light rail vehicles on the Tasman Light Rail line this Summer. While the Cerone Operating Division is being prepped to be the home of VTA’s Fuel Cell Bus Demonstration Program, the North Operating Division has been designed for later conversion from low-emission diesel to fuel cell operations. These major capital improvements will be complemented with the long-awaited systemwide implementation of VTA’s new communication system which features a GPS network. This GPS feature will not only enhance VTA’s security effort, but will prove invaluable in assisting us in designing more effective and efficient service. In the meantime, our partnership with Santa Clara County on the delivery of the l996 Measure A/B Transportation Improvement Program continues at a rapid, successful pace. While the economic downturn has had a similar negative effect on this program’s revenue stream, all major components of the A/B program are moving ahead on time and on budget. The years 2003 and 2004 will see many of these projects come on line. While Silicon Valley’s economic recovery may not be as rapid as we all may hope for, it will recover. Our task is to be ready when that happens and that includes: continuing our efforts on the full implementation of VTA’s VTP2020 program; securing a combination of revenue streams to support a comprehensive and effective transportation system; and most important, get our highly skilled workforce back, and continue to make

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______________________________________________________________________________ major investments in attracting and retaining the best individuals our diverse community has to offer.

Peter M. Cipolla General Manager April 30, 2002

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______________________________________________________________________________

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ Resolution No. RESOLUTION OF THE BOARD OF DIRECTORS OF THE SANTA CLARA VALLEY TRANSPORTATION AUTHORITY (VTA) ADOPTING THE ANNUAL BUDGET OF VTA FOR FISCAL YEAR 2002-2003 WHEREAS, on or before May 3, 2002, the General Manager presented the Santa Clara Valley Transportation Authority Fiscal Year 2002-2003 Recommended Budget to the Board of Directors and mailed a copy to each City Manager and Mayor in the County of Santa Clara and to the County Executive; and WHEREAS, additional copies of the Recommended Budget were distributed to VTA’s Advisory Committee membership, libraries in Santa Clara County, Santa Clara County’s state and federal legislative delegation, senior and disabled groups, professional community organizations, and the media, and were available for perusal at VTA’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 capital expenses for the Congestion Management Program together with the apportionment 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 Committee on May 16, 2002, and on April 18, May 16, and June 6, by the Board of 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 wages, salaries and benefits for Fiscal Year 2002-2003 is based upon VTA’s position classification and pay plan and is set forth in the Statement of Revenues and Expenses in the Recommended Budget; and WHEREAS, the Board of Directors desires to adopt an annual budget for the Fiscal Year 2002-2003; NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Santa Clara Valley Transportation Authority that the attached recommended budget for the Santa Clara Valley Transportation Authority (marked “Exhibit A” and incorporated herein as though set forth at length), as revised as shown on Exhibit B, is hereby adopted as VTA’s budget for the Fiscal Year 2002-2003.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ BE IT FURTHER RESOLVED that, effective July 1, 2002, positions may be authorized and filled, as required, by the General Manager and General Counsel, as appropriate, provided that total VTA-wide budgeted wages, salaries and benefits account is not exceeded. BE IT FURTHER RESOLVED, that, as necessary for efficient administration, position classifications may be added, modified, or deleted and salary ranges adjusted with the approval of the General Manager or General Counsel, as appropriate, provided that the changes are in accordance with applicable VTA personnel policies and procedures and are consistent with pay practices in the transportation industry. Such changes shall include pay and classification adjustments arising from agreements between VTA and its recognized labor organizations. BE IT FURTHER RESOLVED, that operating appropriations for major professional services for one time non-recurring programs or projects, which are not expended during the fiscal year, shall carryover to the successive fiscal years until the programs 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 during the fiscal year, shall carry over to successive fiscal years until the projects are completed or otherwise terminated. BE IT FURTHER RESOLVED, that the budget shall consist of five Funds: the Transit Enterprise Fund, the Congestion Management Program Fund, the 1996 Measure B Transportation Improvement Program Fund, the 2000 Measure A Transit Program Fund and the Highway Improvement Fund. The General Manager may reallocate appropriations between budget units and cost groups within each Fund up to the limits of each Fund’s annual appropriation. Any net increase in authorized appropriations to any Fund (including an allocation from reserves) shall require an affirmative 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 Directors on ___________, by the following vote: AYES: NOES: ABSENT: DIRECTORS DIRECTORS DIRECTORS

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______________________________________________________________________________

___________________________ RON GONZALES, Chairperson Board of Directors ATTEST: _________________________________ SANDRA WEYMOUTH, Secretary Board of Directors APPROVED AS TO FORM: __________________________________ SUZANNE GIFFORD, General Counsel

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ SANTA CLARA VALLEY TRANSPORTATION AUTHORITY FISCAL YEAR 2002-03 BUDGET EXECUTIVE SUMMARY
FY 2000-01 FY 2001-02 Adopted Revised Actual Budget Budget OPERATIONS 47,238 9,237 56,475 48,800 10,000 58,800 44,200 8,100 52,300 FY 2002-03 Budget % Change from FY 01 Revised

Ridership (In 000's): Bus Light Rail Total Ridership Service Miles (In 000's): Bus Light Rail Total Service Miles

43,600 7,900 51,500

-1.4% -2.5% -1.5%

22,640 1,927 24,567

23,479 2,088 25,567

21,037 2,080 23,117 2,920

21,174 1,832 23,006 2,596

0.7% -11.9% -0.5% -11.1%

Positions * 2,540 2,863 * Excluding 70 partially funded operator positions in FY 2002-03.

Total Revenues Major Revenue Components: 1/2 Cent Sales Tax TDA Fares

REVENUES (In $000's) $ 349,086 $ 346,508 $ 334,728

$ 336,927

0.7%

$

183,540 81,183 31,724

$

180,000 95,402 33,586

$

152,000 95,402 29,875

$

155,000 63,383 34,500

2.0% -33.6% 15.5%

Total Expenses Major Expense Components: Wages & Benefits ADA Paratransit Material and Supplies Caltrain Security Other Services Professional Services Fuel ACE Operating Cost Recovery Ratio

EXPENSES (In $000's) $ 269,747 $ 337,382 $ 344,411

$ 341,825

-0.8%

$

182,197 21,558 14,216 13,021 7,304 8,706 11,456 6,588 1,522 15.8%

$

214,462 25,152 17,948 14,300 9,313 8,666 14,617 7,706 5,100 14.2%

$

222,665 32,452 17,018 14,300 9,726 9,063 14,266 6,956 5,100 12.9%

$

227,888 32,452 16,048 14,105 9,473 7,883 7,808 5,964 5,100 14.5%

2.3% 0.0% -5.7% -1.4% -2.6% -13.0% -45.3% -14.3% 0.0%

CAPITAL PROJECTS Number of Projects: New Projects Augmented Projects Carryover Projects** Total Number of Projects Gross Project Expenditures (In $000's) New Projects Augmented Projects Carryover Projects** Total Project Expenditures ** Excluding Debt Service 33 5 213 251 49 14 42 105 12 4 90 106 -75.5% -71.4% 114.3% 1.0%

$

61,281 76,010 954,492 $ 1,091,783

$

63,318 116,785 764,603 $ 944,706

$

4,668 2,848 944,904 $ 952,420

-92.6% -97.6% 23.6% 0.8%

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ 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 (VTA). This statement provides a framework for making future policy, planning and budgetary decisions. VISION STATEMENT The vision of the Santa Clara Valley Transportation Authority (VTA) is to provide a transportation system that allows anyone to go anywhere in the region easily and efficiently. This statement contains the long-range vision for VTA and portrays the desired future VTA seeks to achieve. The vision is regional, including both the immediate 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 (VTA) is to provide the public with a safe and efficient countywide transportation system. The system increases access and mobility, reduces congestion, improves the environment, and supports economic development, thereby enhancing quality of life. The mission or core purpose of VTA is to provide a “safe and efficient countywide transportation system.” The emphasis is on an integrated transportation system that comprises the full range of mobility options, from cars, buses, and rail systems to walking and bicycle trips. The system will allow members of the public to travel easily and comfortably to their destination by the most appropriate means. POLICY DIRECTIONS In adopting the vision and mission in 1995, the Board of Directors specified four key policy directions for VTA. In March 1999, the Board adopted a fifth policy 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 transportation program of projects

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ STRATEGIC PLAN The Strategic Plan serves as the umbrella policy document for VTA and drives the Recommended Budget and other documents for which VTA has responsibility, such as the Short Range Transit Plan (SRTP), the Congestion Management Program (CMP), and the Countywide Transportation Plan. The goals set forth in the Strategic Plan are ambitious but attainable, and include mechanisms for measuring performance. The Strategic Plan contains VTA’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 goals established in the Strategic Plan. The Strategic Plan also includes a 10-year Business Plan for VTA. The Business Plan consists of a 10-year forecast of transit service levels, expenses, revenues, and specific performance measures with annual benchmarks for monitoring progress towards attaining our goals. VTA’s actual performance is analyzed each year against the performance measures, and the Business Plan is modified accordingly. VTA’s current Business Plan was released in the later part of 1998.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ CURRENT OPERATIONS The Santa Clara Valley Transportation Authority (VTA) is an independent public agency responsible for bus and light rail operation, regional commuter and inter-city rail service, ADA paratransit service, congestion management, specific highway improvement projects, and countywide transportation planning. As such, VTA is both an accessible transit provider and a multi-modal transportation planning and implementation organization involved with transit, roadways, bikeways, and pedestrian facilities. VTA provides transit services to the 326 square mile urbanized portion of Santa 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. VTA operates 78 bus routes and two light rail transit (LRT) lines within this service area. In addition, VTA funds paratransit and privately operated shuttle services in the County and participates in providing interregional commuter rail and express bus services. All of the bus and rail vehicles are accessible for individuals with disabilities. In January 1995, VTA was designated as the Congestion Management Agency and changed from being exclusively a transit provider to an organization responsible for countywide transportation planning, funding, and congestion management within the County.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ VTA, in partnership with the County of Santa Clara, assumed the responsibility for implementing the 1996 Measure B Transportation Improvement Program of transit and highway improvement projects. In addition, VTA is responsible for implementing the 2000 Measure A Transportation Improvement Measure – an essential element of VTP 2020. The following section provides a summary of VTA’s services: BUS OPERATIONS By the beginning of FY 2002-03, VTA will have an active bus fleet of 461 diesel-powered buses, which includes 139 low-floor buses. The average age of these buses is about 5.4 years and the buses range from brand new to over eleven years old. There are approximately 4,700 bus stops and 700 shelters along the bus routes. VTA also maintains 15 park & ride lots -- five owned by VTA and ten provided under a lease, permit, or joint use agreement with other agencies. Buses are operated and maintained from three operating divisions and an Overhaul and Repair (O&R) facility: Cerone Operating Division, Don Pedro Chaboya Operating Division, North Operating Division, and Cerone O&R Division. LIGHT RAIL TRANSIT (LRT) VTA operates a 29.7-mile LRT system connecting the Silicon Valley industrial areas of Mountain View, Sunnyvale, Santa Clara, North San Jose and Milpitas to residential areas in South San Jose. The LRT system has a total of 50 stations and 14 park & ride lots. It operates on three routes: service between Santa Teresa and the Baypointe Station in North San Jose, service between Mountain View and the I-880/Milpitas Station in Milpitas and shuttle service between Almaden and Ohlone-Chynoweth Stations in South San Jose. A fleet of 50 light rail vehicles is operated on the LRT system. On weekends and holidays during the months of April through October, weather permitting, VTA also operates four historic trolleys from the Civic Center Station to the Convention Center Station. All light rail vehicles and historic trolleys are stored and maintained at the Guadalupe Operating Division near downtown San Jose. PARATRANSIT SERVICES In 1992, VTA implemented a paratransit system, which operates throughout the County. VTA contracts with Outreach and Escort, Inc., to provide the service. Eligible riders call Outreach to schedule their trips. Outreach then assigns the trips based on the most appropriate mode that can meet the riders’ needs: taxi, sedan, accessible van, or transfer to or from fixed-route. VTA is in full compliance with the Americans with Disabilities Act (ADA). CONTRACTED AND INTERAGENCY TRANSIT SERVICES VTA is also a partner in various ventures that expand the transportation options for our customers. These relationships include commuter rail, inter-county express bus lines, and rail feeder services. They are operated either by contract or through cooperative agreements.
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VTA FY 2002-03 BUDGET

______________________________________________________________________________ Caltrain/Peninsula Corridor Joint Powers Board (PCJPB) Caltrain is the commuter rail service provided by the PCJPB, which is governed by representatives from San Francisco, San Mateo, and Santa Clara counties. It operates between Gilroy and San Francisco. Seventy-six trains operate between San Jose Diridon Station and San Francisco each weekday, with 65 of these trains extended to the Tamien Station in San Jose where a connection can be made to the LRT system. Connection to the LRT system can also be made at the Mountain View Caltrain Station. Eight peakhour weekday trains (four northbound in the morning and four southbound in the evening) extend Caltrain from Tamien station to Gilroy. There are 33 stations along the line. The system uses diesel-powered locomotives. The funding share of the operating costs apportioned to each member agency is based upon morning peak period boardings that serve in each county, currently about 41% for VTA. Altamont Commuter Express Rail Service The Altamont Commuter Express (ACE) rail service provides peak hour, weekday commuter rail service from the Central Valley to Santa Clara County (three morning and three afternoon commuter trains). VTA, the San Joaquin Regional Rail Commission, and the Alameda County Congestion Management Agency administer the service under a Joint Exercise of Powers Agreement. The 85-mile rail line includes ten stations located in Stockton, Lathrop, Tracy, Livermore (2), Pleasanton, Fremont, Great America, Santa Clara and San Jose Diridon Station. VTA provides free shuttles to transport ACE riders between the Great America and San Jose 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 43% for VTA). Capitol Corridor Intercity Rail Service The Capitol Corridor Intercity Rail service began in December 1991 and is a 170-mile train corridor from Auburn and Sacramento to San Jose, through Placer, Sacramento, 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 five daily round trips from Sacramento to Oakland with connecting bus service to and from San Jose. One round trip per day extends beyond Sacramento to Auburn. The train service parallels the Interstate 80 corridor between Sacramento and Oakland, 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 Jose Diridon Station. On July 1, 1998, the Capitol Corridor Joint Powers Authority (CCJPA), which is comprised of representatives from the eight counties served by the corridor, assumed responsibility for the service. Under contract with the CCJPA, the Bay Area Rapid Transit District (BART) manages the service and Amtrak operates the service on tracks owned by Union Pacific Railroad. The funding is provided by the State of California.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ Inter-county Bus Services VTA sponsors two inter-county bus services through cooperative arrangements with other transit systems. The Dumbarton Express is a transbay express route operating between the Union City BART Station and the Stanford Research Park in Palo Alto. It provides the only regularly scheduled public transit service over the Dumbarton Bridge. A consortium comprised of representatives from the Alameda-Contra Costa Transit District (AC Transit), the San Francisco Bay Area Rapid Transit District (BART), the City of Union City, the San Mateo County Transit District (SamTrans), and VTA underwrite the net operating costs of the service. This service is contracted out to a private transit provider. SamTrans and VTA are responsible for 50% of the net operating costs and the other East Bay transit operators are responsible for the rest. The 50% of the operating costs is apportioned based upon all day boardings in the Santa Clara County and San Mateo County (currently about 36% for VTA). Express service over Highway 17 between Santa Cruz and downtown San Jose is funded and operated through an agreement between the Santa Cruz Metropolitan Transit District and VTA. Santa Cruz Metro operates this service. The two agencies share the net operating costs equally. Rail Shuttle Program Under this program, VTA offers financial assistance to employers that wish to operate shuttle bus service between LRT stations and nearby employment centers. The service is operated through a private contractor provided by VTA or the employers. 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 employers (minimum of 25%), VTA (typically 30%), and grants (45%) from the Transportation Fund for Clean Air Act (AB434). DASH and Compaq Center Shuttle Programs VTA operates a free shuttle (DASH) on weekdays between the downtown San Jose Transit Mall, San Jose State University, and the San Jose Diridon Train Station. VTA, the Transportation Fund for Clean Air Act, the City of San Jose, and the San Jose Downtown Association fund this service. In addition, VTA operates a free shuttle service from the downtown San Jose Transit Mall to all public events held in the Compaq Center. The number of buses operating and frequency of service depend upon the event. San Jose Airport Flyer Service VTA, in partnership with the City of San Jose, provides free Airport Flyer bus service connecting San Jose International Airport terminals and airport employee parking lots with VTA’s Metro/Airport Light Rail Station and the Santa Clara Caltrain Station. The City of San Jose and VTA equally share the operating costs for this service.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ CONGESTION MANAGEMENT VTA, as the Congestion Management Agency for Santa Clara County, is responsible for coordinating and prioritizing projects for state and federal transportation funds, administering the Bay Area Air Quality Management Program, and coordinating land use and other transportation planning. 1996 MEASURE B TRANSPORTATION IMPROVEMENT PROGRAM (MBTIP) In November 1996, the voters in Santa Clara County overwhelmingly approved Measure A, an advisory measure listing an ambitious program of transportation improvements for Santa Clara County. Also approved on the same ballot, Measure B authorized the County Board of Supervisors to collect a nine-year half-cent sales tax for general county purposes. Subsequently, the County Board of Supervisors adopted a resolution dedicating the tax for Measure A projects. Collection of the tax began in April 1997; however, use of the revenue was delayed pending the outcome of litigation challenging the legality of the sales tax. In August 1998, the California courts upheld the tax allowing the implementation of the Measure A transportation projects to move forward. In February 2000, the VTA Board of Directors approved a Master Agreement formalizing our partnership with the County of Santa Clara to implement the 1996 Measure B Transportation Improvement Program. With this partnership in place, the County and VTA are in a position to complete a transportation program valued at over $1.7 billion. VTA will be responsible for project implementation 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 Section IV. 2000 MEASURE A TRANSPORTATION IMPROVEMENT PROGRAM In August 2000, the VTA Board of Directors approved placing a measure on the November 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 70% of the voters approved the 2000 Measure A. It is estimated that $6.8 billion (FY 2001 constant dollars) will be collected. The revenue from this Measure may be used to finance the transit projects and operations specified in 2000 Measure A and listed in VTA’s VTP 2020 Transportation Plan and Expenditure Program. VTP 2020 provides for a balanced transportation system consisting of transit, roadway, bicycle and pedestrian improvements. 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, light rail; Purchase vehicles for disabled access, senior safety, clean air buses;
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VTA FY 2002-03 BUDGET

______________________________________________________________________________ • • • 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 adoption by the VTA Board of Directors. At this time, several key capital projects have already been created. A more detailed description of the program elements can be found in Section IV.

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______________________________________________________________________________

Board of Directors

General Counsel Suzanne Gifford

General Manager Peter M. Cipolla

Operations Frank T. Martin Chief Operating Officer

Administrative Services Kaye L. Evleth Chief Administrative Officer

Construction Jack Collins Chief Construction Officer

Development/ Congestion Management Mike Evanhoe Chief Development Officer

Fiscal Resources Scott Buhrer Chief Financial Officer

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______________________________________________________________________________

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VTA FY 2002-03 BUDGET

______________________________________________________________________________
SANTA CLARA VALLEY TRANSPORTATION AUTHORITY FISCAL YEAR 2002-03 PROPOSED BUDGET STATEMENT OF REVENUES AND EXPENSES FY 2000-01 In thousands Fares 1/2 Cent Sales Tax TDA STA Federal Operating Grants (1) State Operating Grants Investment Earnings Advertising Income Financing Transactions Other Income - Sale of Property Other Income Total Revenue Wages & Salaries Benefits Materials & Supplies Security Professional & Special Services Other Services Fuel Traction Power Tires Utilities Insurance Data Processing Office Expense Communications Employee Related Expense Leases & Rents Contingency Miscellaneous Reimbursements Operating Expense ADA Caltrain Caltrain Capital Contribution (2) Light Rail Shuttles Altamont Commuter Express Highway 17 Express Dumbarton Express Contribution to Other Agencies Other Expense Other Expense Total Expense Debt Service Surplus/(Deficit) to Reserves $ Actual 31,724 183,540 81,183 4,263 17,787 942 22,078 4,079 3,490 349,086 115,960 66,237 14,216 7,304 11,456 8,706 6,588 2,083 881 1,786 1,473 2,957 887 1,202 1,307 557 992 (13,089) 231,503 21,558 13,021 1,065 1,522 482 143 348 105 38,244 269,747 8,760 70,579 FY 2001-02 Adopted Revised Budget Budget $ 33,586 $ 29,875 180,000 152,000 95,402 95,402 7,681 7,681 7,504 23,285 1,355 1,355 10,850 15,000 4,608 4,608 5,522 5,522 346,508 334,728 136,197 78,265 17,948 9,313 14,617 8,666 7,706 3,297 1,084 2,364 3,273 3,617 846 1,882 2,459 828 10,423 2,790 (15,594) 289,981 25,152 14,300 1,439 5,100 564 197 501 148 47,401 337,382 27,537 143,267 79,398 17,018 9,726 14,266 9,063 6,956 4,997 1,084 2,364 3,273 3,796 783 1,882 2,381 715 1,500 2,209 (14,927) 289,751 32,452 14,300 1,439 5,100 564 197 501 107 54,660 344,411 24,537 FY 2002-03 Budget 34,500 155,000 63,383 7,322 31,900 1,766 12,000 4,589 16,320 5,000 5,147 336,927 144,768 83,120 16,048 9,473 7,808 7,883 5,964 4,000 1,049 2,353 4,262 3,124 787 1,750 1,671 739 5,000 1,916 (16,750) 284,965 32,452 14,105 2,500 1,340 5,100 587 250 440 86 56,860 341,825 25,268 (30,166) % Change from FY 02 Revised 15.5% 2.0% -33.6% -4.7% 37.0% 30.3% -20.0% -0.4% NA NA -6.8% 0.7% 1.0% 4.7% -5.7% -2.6% -45.3% -13.0% -14.3% -20.0% -3.2% -0.5% 30.2% -17.7% 0.5% -7.0% -29.8% 3.4% 233.3% -13.3% 12.2% -1.7% 0.0% -1.4% NA -6.9% 0.0% 4.1% 26.9% -12.2% -19.6% 4.0% -0.8% 3.0% -11.8%

$

$

$ (18,411) $ (34,220) $

(1) FY 02 Revised Budget included $9.7 million Federal Grants reprogrammed for Preventative Maintenance. (2) Included in Capital Budget in FY 2001-02.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ OPERATING BUDGET Twelve to eighteen months ago, Santa Clara County was in the midst of an economic boom. The economy changed dramatically in calendar year 2001. In January 2001 unemployment in Santa Clara County was just 1.7%. In just a year’s time, unemployment increased to 7.7% in January 2002, more than a four-fold increase. A recent study by the San Jose Mercury News has indicated that Silicon Valley 150 companies posted combined losses last year that exceeded their total profits from the previous eight years combined. As a result of this economic downturn, the Valley Transportation Authority (VTA) has experienced a sustained and significant reduction in local sales tax revenues over the last 12 months used to fund the operation and maintenance of the transit system. The first two quarters of FY 2001-02 were both down over 20.0% compared to the same quarters the previous year. These declines in sales tax revenue are the most extreme ever experienced in the history of VTA. The economic downturn has also had a significant impact on transit ridership, which has resulted in a concurrent reduction in VTA fare revenues. With sales tax providing approximately 64.8% (80.0% in the last few years) of VTA’s total general revenues and fares providing another 10.2%, it is clear that projected revenues for FY 2002-03 will be inadequate to cover anticipated operational expenses. Even a major local economic upswing would not generate enough revenue to offset the projected revenue shortfall in FY 2002-03. This is due, in part, to the fact that sales tax revenues typically lag behind changes in the economy. While projections call for some economic recovery, this is also expected to be very slow in coming. Unfortunately, even with cost savings and the proposed service reductions, we believe a fare increase is needed to avoid even greater service reductions. In order to balance revenues with expenses, VTA has already imposed a general hiring freeze, (although selected positions will still need to be filled) required every department manager to submit a plan to reduce departmental operating budgets by 15.0%, and deferred or eliminated $70.0 million in locally funded capital projects. Additionally, a 5.0% service reduction is being proposed for July 1, 2002. Significant program reductions, modifications and elimination have been made and are being proposed to simply get through FY 2002-03. We will need to delete over 300 positions, some are currently vacant and most are currently filled. Layoffs are imminent. Total revenue is projected at $336.9 million, an increase of only 0.7% over the FY 2001-02 Revised Budget. Significant areas of revenue increase or decrease include: a $16.3 million realization of one-time financing transaction gains; an $8.6 million increase in Federal Grant for Preventative Maintenance; a $4.6 million increase in fares; a $5.0 million gain in sales of property; and a $32.0 million decrease in the quarter-cent sales tax revenue (also known as Transportation Development Act fund or TDA in short).

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ In FY 2002-03, expenses have decreased by 0.8% and total $341.8 million. Primary areas of expense increase or decrease are: a $5.2 million increase in salaries and benefits; a $3.5 million increase in the General Manager’s contingency fund (In the FY 2001-02 Adopted Budget, we budgeted $10.4 million for the whole year. In the Revised Budget, due to transfer-outs and the budget reduction, the fund was reduced to $1.5 million -- the amount we believed would be sufficient to fund any contingencies arising in the last two months of the fiscal year. The $3.5 million increase would bring the contingency fund needed for the full FY 2002-03 to $5.0 million, which is $5.4 million less than the FY 02 Adopted Budget); the inclusion of a $2.5 million Caltrain Capital Contribution; and a $7.6 million decrease of professional and other services. The projected operating recovery ratio, which measures the proportion of operating expense covered by operating revenue (excluding all purchased and interagency services, and interest income and expense), is 14.5%. We believe that we have developed strategies that keep the impacts of fare increases and service reductions to the min imum possible, for the time being. We are proposing a budget that will virtually exhaust our budgetary reserves and incorporates a number of one-time solutions to address what is realistically an ongoing structural problem. The one-time revenues, federal capital money used for Preventative Maintenance programs and the cost reductions, result in a projected operating deficit of $30.2 million. Without them, the deficit would be $85.4 million. By June 30, 2003 we currently estimate that our reserves will be approximately $7.2 million and our ongoing excess of expenditures over revenue will exceed $5.0 million each month. According to the Board Policy, 15% of the subsequent year operating budget is restricted to meet emergency needs that cannot be funded from any other source. We cannot meet this requirement in FY 2001-02 or FY 2002-03. We will try to bring our Uncommitted Budgetary Reserves target amount back to 15% on a 5% annual incremental basis beginning FY 2003-04. FY 2001-02 and FY 2002-03 Budgetary Reserve Ending Balance Estimates (In Thousand dollars) Reserves/Working Capital as of 2/28/02 FY 2001-02 Revenue Projection FY 2001-02 Expense Projection Less February Year-to-Date Actual: Revenue Expense Reserves Consumed by Operations Reserves Committed for Local Share of Capital Projects as of 2/28/02 Projected Uncommitted Budgetary Reserves as of 6/30/02 $231,244 334,205 (344,410) 207,189 (212,199) (5,195) (183,928) $42,121

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ Projected Uncommitted Budgetary Reserves as of 6/30/02 FY 2002-03 Preliminary Budget: Revenues Expense Debt Service FY 2002-03 Preliminary Deficit Local Share of New Capital Projects Projected Uncommitted Budgetary Reserves as of 6/30/03 $42,121 336,927 (341,825) (25,268) (30,166) (4,759) $7,196

BUDGET POLICIES, PRACTICES, AND METHODOLOGIES This budget consists of five funds: the Transit Enterprise Fund that accounts for VTA’s regular operations, the Congestion Management Program, the 1996 Measure B Transportation Improvement Program, the 2000 Measure A Transit Program Fund, and the Highway Improvement Fund. The budget for the Transit Enterprise 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 Transportation Improvement Program, the 2000 Measure A Transit Improvement Program and the Highway Improvement Fund is budgeted as capital projects, which are based upon total expected completion costs. Originally, the FY 2002-03 operating budget development proceeded using the modifiedbase budget approach, same as in previous year. Basically, we used last year’s adopted budget as the baseline for the development of the current budget. One-time major items were subtracted from, and mid -year budget modifications and significant adjustments were added to the Adopted Budget. Then a 4.0% cost escalation factor representing inflation was applied as appropriate to the non-labor expense items. Labor-related expenses were increased according to the terms of the collective bargaining agreements. The result became the Baseline Budget - the extent to which VTA must commit resources to continue its current level of operations. For selected major cost items, such as fuel expenditure, we developed the budgets using a zero-based budgeting approach. New activities or programs were submitted as supplemental budget requests and they were added to the Baseline Budget. Finally, we made projections of our revenues – especially the half-cent sales tax – based on the latest information. Project managers submitted their new capital project and augmentation requests to the Capital Improvement Program Oversight Committee (CIPOC), which is composed of senior management and supporting staff from the Operations, Construction, Development/Congestion Management and Fiscal Resources divisions, for approval. However, the resulting preliminary FY 2002-03 operating budget indicated a deficit in excess of $90 million. Coupled with the new FY 2002-03 capital project requests, we reached the conclusion that VTA would not only exhaust the budgetary reserves we have

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ accumulated in the last few years when sales tax receipts were bountiful, we would have a huge negative reserve by the end of FY 2002-03. Realizing the severity of the situation, management decided that immediate and decisive actions had to be taken to attack the problem. We approached the problem in three phases: 1. A comprehensive review of all current and requested capital projects by CIPOC -- As a result of this cost reduction review, we have either closed or reduced the scope of 158 projects. The total savings was $70.7 million to VTA. 2. A 15% budget reduction for administrative and support cost centers – all department managers were requested to reduce their non-salary expenditure in the FY 2002-03 Baseline Budget by 15%. 3. A programmatic review by senior executives – Without eliminating/reducing programs, activities, services or tasks, and decreasing headcounts, managers could not achieve the 15% reduction goal by merely trimming budget costs and improving efficiency. Recognizing this fact, we instituted a 5% service reduction and hiring freeze. In addition, we implemented a zero-based budgeting process – managers had to justify the programs and activities performed in their cost centers, and resources needed to fund them individually and separately. Three senior executives formed a panel to review these justifications. Consequently, many programs or services were either eliminated or curtailed. More than 300 position reductions (both vacant and filled positions) are proposed in this budget. We will watch our financial health closely in FY 2002-03. If conditions warrant, additional reductions might be required. On the other hand, if our financial situation improves, we will recall our laid off employees and increase service levels as soon as possible. The proposals will be forwarded to the Board for approval in the FY 2002-03 Mid-Year Budget Review. BUDGET PROCESS FY 2002-03 will be a difficult year and so has been its budget development process. We had to deviate from our regular budget process in mid-stream in reaction to the economic downturn. Last September, we started the FY 2002-03 operating and capital budgeting process by developing the major budget assumptions such as the inflation rate, benefit rates, and sales tax receipts. After review by VTA senior management, the key assumptions were submitted to the Administration and Finance Committee and the Board of Directors for approval. In September and November respectively, the Budget Department sent out capital and operating budget preparation packages to the departmental managers. All capital project requests were submitted to CIPOC in October. CIPOC thoroughly reviewed all requests and presented their recommendation to senior management in January. The departmental managers returned their completed baseline budgets, supplemental budget requests, and other forms in December 2001.
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VTA FY 2002-03 BUDGET

______________________________________________________________________________ After these preliminary budgets were compiled, the magnitude of the financial downturn became clear. Senior management created a special committee of three executives to review VTA’s operations and to implement a 15% cost reduction plan. This detailed review resulted in this proposed budget that includes a list of programs and positions identified for elimination. An overview of this proposed FY 2002-03 budget was presented to the Board of Directors at the April Budget Workshop. One workshop will be conducted on May 16. Three Public presentations of the budget will be conducted on May 7, 8 and 9. The Administration and Finance Committee will consider the public comments on May 16, and the Board is scheduled to adopt the budget at its June 6 meeting. If budget changes are necessary during the fiscal year, a department manager submits a budget modification request with all the necessary supporting documents to the Budget Department. After determining the fiscal impacts, concurring with the request, and obtaining the required management approvals, the Budget is modified. A mid-year budget review is scheduled for the January 2003 Board workshop. The review provides the Board and the public with an opportunity to evaluate VTA’s actual performance after several months of operations. In addition, it presents a forum for VTA management to report to the Board any major budgetary changes that have been implemented since the budget adoption and to request resource reallocations that are warranted due to changes caused by both internal and external factors.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ MAJOR BUDGET ASSUMPTIONS AND EXPLANATIONS REVENUES Regional Economic Growth – Half-Cent Sales Tax and TDA The half-cent local sales tax and a REVENUE SOURCES Half-Cent Sales Tax quarter-cent state sales tax (also known as the Transportation Development Act or TDA) are the two 46.0% most important income sources to VTA. About 64.8% (80% in the last few years) of VTA’s operating revenues are generated from them. They are 18.8% 10.6% driven by the local economy. Besides TDA being the prime source of our Other 9.5% 4.8% 10.2% operating income, sales tax revenues are extremely important to us Fares because our ability to raise revenue Federal Grants Financing Transactions from other sources is very limited. The quarter-cent 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 the Metropolitan Transportation Commission (MTC). VTA receives the TDA funds 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 over-funding or under-funding in prior years. Although we anticipated the “burst of the high-tech economic bubble” for the last few years, we, along with nearly everyone else, were surprised by the suddenness and severity of the resulting economic slowdown. Santa Clara County lagged the nation in experiencing the full impacts. As the rest of the nation now appears poised for economic recovery, Santa Clara County continues to post job losses.
Yearly Sales Tax Receipts
$200 30%

20% $150 Yearly % Change
In $ Millions

10% $100 0% $50 -10% Receipts Yearly % Change $0
75 19 80 19 85 19 90 19 95 19 * * 00 20 00203 * 2 0 2

-20%

On March 18, 2002, we received our * FY 2002 Revised ** FY 2003 Recommended sales tax data for the second quarter of FY 2001-02. The receipts were 24.5% less than the same quarter last year – $7.6 million less than the forecast. In the FY 2001-02 Mid-Year Budget, we revised our sales tax down to $152.0 million or approximately $31.5 million less than FY 2000-01 actual receipts of $183.5 million. When we factor in the effects that will ultimately show up in our Transportation Development Act funds, (which is essentially a state levied one quarter
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VTA FY 2002-03 BUDGET

______________________________________________________________________________ cent sales tax), the impact translates to a decline of over $45.0 million in our annual revenue stream. Although we have seen some encouraging national economic data lately, the current environment in our County remains very challenging. In light of the new data, we project our FY 2002-03 halfcent sales tax receipts forecast to be $155.0 million, or a 2.0% increase over the current revised budget.
Quarterly Sales Tax Receipts
$60 30%

$50

20% Quarterly % Change

$40
In $ Millions

10%

$30

0%

$20

-10%

$10

Quarterly Receipts Qtr over Qtr % Change

-20%

$0
1 7Q Q1 98 Q1 99 Q1 00 Q1 01 Q1 02

-30%

9 FY FY FY FY FY FY According to MTC, VTA’s TDA funds will decrease to $63.4 million, a 33.6% reduction below the FY 2001-02 allotment due to the recession.

Ridership and Fares Ridership has decreased substantially in recent months due primarily to the large number of jobs lost over the last year. There is a clear and direct correlation between ridership and employment -- ridership drops when employment declines. Since we do not expect a quick recovery in the job market in this County, ridership will remain low next year. Together with our 5% service reduction plan in FY 2002-03, we expect ridership to decrease by 1.5% to 51.5 million.

Correlation Between Ridership and Employment
20%

Same Month Prior Year % Change

15% 10% 5% 0% -5% -10% -15%
0 200 Jan ar M ay M l Ju p Se v No 1 200 Jan ar M ay M l Ju p Se v No 2 200 Jan

Weekday System-Wide Ridership Santa Clara County Employment

VTA has a stated policy of implementing a fare review every two years. We have not conducted one in three years. Although fares contribute about 10.0% of our total revenues, (which is defined differently than farebox recovery ratio) fares are the only source of revenue that we can influence to any extent. In times of financial difficulties, we cannot ignore its contribution to fund our operations. We expect that the proposed fare modifications can enhance our general revenues by $4.6 million, or 15.5%, from the FY 2001-02 Revised Budget. Nearly all Bay Area transit agencies are also proposing fare increases. We believe that our fare proposal is reasonable and necessary. Because of our larger discounts on multi-ride fare instruments, VTA will continue to have one of the lowest average fare per boarding in the Bay Area. We need to increase fares and reduce service levels at the same time because doing only one of them will impose greater and disproportionate hardship for our riders. We believe that our current proposal represents a balanced compromise.
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VTA FY 2002-03 BUDGET

______________________________________________________________________________
FY 1998-99 In thousands Ridership: Actual FY 1999-00 Actual FY 2000-01 Actual FY 2001-02 Adopted Revised Budget Budget FY 2002-03 Budget

Bus % Change Light Rail % Change Total Ridership % Change Total Revenue % Change $

47,487 6,863 54,350

47,008 -1.0% 7,914 15.3% 54,922 1.1% $ 30,622 $ 12.6% 0.56 $ 12.0%

47,238 0.5% 9,237 16.7% 56,475 2.8% 31,724 $ 3.6% 0.56 $ 0.0%

48,800 3.3% 10,000 8.3% 58,800 4.1% 33,586 $ 5.9% 0.57 $ 1.8%

44,200 -6.4% 8,100 -12.3% 52,300 -7.4% 29,875 $ -5.8% 0.57 $ 1.8%

43,600 -1.4% 7,900 -2.5% 51,500 -1.5% 34,500 15.5% 0.67 17.5%

27,201

Average Fare Per Boarding $ % Change

0.50

$

As a result of lower ridership but higher fares revenue, our average fare per boarding is expected to increase by 10 cents to 67 cents, or a 17.5% increase. The Eco Pass and Residential Eco Pass programs continue to be popular with both employers and residential communities. Currently VTA serves over 105,000 employees and residents in the area. The projected Eco Pass revenue for FY 2002-03 is estimated at $1.5 million. Our Caltrain pilot program has been extremely well received and will be evaluated later this year. FY 2001-02 Preventative Maintenance Program On April 4, 2002 the VTA Board of Directors approved the Revised FY 2001-02 Operating and Capital Budgets. At that time, we project a $44.5 million operating deficit. Subsequently, we considered the feasibility of shifting $9.7 million in FFY (Federal Fiscal Year) 2002 Section 5307 funds currently programmed for Replacement Buses to Preventative Maintenance. This action would increase the amount available for Preventative Maintenance from $13.5 million to $23.2 million in FFY 2002. Preventative Maintenance is an eligible activity for FTA Section 5307 formula grant assistance. Although Section 5307 is primarily a capital grant program, funds awarded for Preventative Maintenance essentially function to support the maintenance portion of the operating budget. We have conducted a careful review of all options available and discussed the various issues with MTC and FTA. Based upon this review, staff recommends the following actions: 1. VTA should continue to pursue the existing Section 5307 grant request with no changes at this time (providing $9.7 million for Replacement Buses and $13.5 million for Preventative Maintenance). This application is expected to be approved August/September, 2002.
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VTA FY 2002-03 BUDGET

______________________________________________________________________________ 2. After the grant is approved in Aug/Sept. 2002, we will request an amendment to the grant as part of MTC’s upcoming 2003 TIP to shift the $9.7 million from replacement buses to preventive maintenance, increasing the Preventative Maintenance line item from $13.5 million to $23.2 million. This will make available $13.5 million for draw down in Sept/Oct. 2002 and the additional $9.7 million available for draw down in late February or early March of 2003. However, the funds will be accounted for in VTA’s budget year FY 2001-02.

These recommendations will preserve the FFY 2002 preventive maintenance expenses against the Federal FY 2001-02 grant revenues. These actions also help to ensure that VTA receives its funds as quickly as possible (given the grant/TIP funding cycles) and protects the other funds included in the grant so that they are not jeopardized or delayed. These recommendations will also result in reducing the FY 2001-02 operating deficit to $34.2 million, increase the projected June 30, 2002 Budgetary Reserves to approximately $42.6 million and enable VTA to potentially fund a larger deficit in FY 2002-03. FY 2002-03 Preventative Maintenance Program The FY 2002-2011 Short Range Transit Plan estimated that VTA would apply $9.5 million towards Preventative Maintenance in FY 2002-03. We have identified additional formula funds that were originally planned to fund the reconstruction of our Cerone Complex. As a result, the FY 2002-03 Proposed Budget includes $31.9 million for Preventative Maintenance. It is important to note that we originally began our Preventative Maintenance strategy to accelerate cash flow and to free up local sources of funding to underwrite capital projects. We are now maximizing the use of Preventative Maintenance to reduce the operating deficits, with no funds available for locally funded capital. This is a necessary strategy at this time, but one that cannot be sustained for a long period of time. Ultimately, we will need to replace our infrastructure assets. Other Significant One-Time Revenues Sale of Property – The Measure B Route 85/101 North Interchange project will require a “sliver” take of VTA’s North Yard real estate. Independent appraisals will be completed and will be the basis of the compensation. We have estimated that the value will be between $5 to 6 million. Financing Transactions – VTA is planning two financing transactions that will take approximately two years to complete. The first is the subleasing of the (existing) UTDC light rail vehicles. We have met with Sacramento RT and Utah Transit Authority (Salt Lake City) and we anticipate that each agency will lease 25 of the vehicles for the rest of the useful life of the light rail vehicles. The transaction is being structured as a lease, with all rental payments prepaid at the time of delivery of the vehicles. It is anticipated that the transaction will have a bargain purchase option at the end of the lease, which is timed to coincide with termination of the subleases VTA entered into with First Hawaiian
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VTA FY 2002-03 BUDGET

______________________________________________________________________________ Leasing and U.S. Bancorp Leasing and Financial. Vehicles will be released on a schedule that coincides with the receipt of the new low-floor light rail vehicles. We have estimated that we will receive approximately $8.0 million during FY 2002-03 and an additional $6.0 million during FY 2003-04. The second financing transaction is associated with the new low-floor light rail vehicles. The transaction consists primarily of a Head Lease where VTA leases the vehicles to a trust and a Sublease where the trust leases the vehicles back to VTA. The net benefit is highly dependent on valuations of the assets, the remaining useful life and prevailing interest rates at the time the transaction closes. We anticipate that the first “tranche” of the transaction to close in the September or October timeframe in an approximate amount of $8.0 million. These financing transactions will be presented to the Board for approval later in the fiscal year, with more information of the risks and how the benefits arise at that time. Other Income State Transit Assistance (STA) is estimated at $7.3 million, a decrease of $359,000 or 4.7% from the current year. The $3.4 million increase in FY 2001-02 due to a state budget surplus created by the booming economy has not repeated as expected. Advertising revenue is projected to decrease slightly to a total of $4.6 million. It is comprised of two components: advertising on buses and light rail vehicles; and bus shelter advertising. In light of the ongoing weak advertising spending, it is possible that we might be slightly optimistic. We project interest income to decline to $12.0 million as we are drawing down on our reserves faster. EXPENSES Inflation Rate The Consumer Price Index (CPI) is the gauge of inflation at the retail or consumer level. CPI reached an annual rate of 5.38% for the San Francisco-Oakland-San Jose region in 2001. It was the third consecutive year that the Bay Area had a rate above 4.0%. However, this trend is expected to be broken. As the economy in the Bay Area continues to deteriorate rapidly, inflation has finally cooled down. The
Monthly Consumer Price Index (January 1990 thru March 2002) 190 180
Base Year: 1982-84=100
SF-Oakland-San Jose U.S.-All Items SF-Oakland-San Jose Year-Over-Year % Change U.S.-All Items Year-Over-Year % Change January

9% 8% Year-To-Year % Change 7% 6% 5% 4% 3% 2% 1% 0%

170 160 150 140 130 120 110 100

0 1 199 199

2 3 199 199

4 5 199 199

6 7 98 199 199 19

9 00 199 20

1 02 200 20

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ CPI for the Bay Area reached a height of 6.65% in June 2001. Since then, it has started to decline. In February 2002, it reached 1.81% (the last time the Bay Area hit this low was in 1996). However, as most economists believe that the economy will have a mild or slow recovery -- a growth of 1 to 2%, inflation might be back to 3.0% next year. We used 4.0% as the inflation factor to develop our FY 2002-03 budget and we might have slightly overescalated some of our non-labor costs (about 20% of the total cost). All major expense items will be discussed in a programmatic fashion. However, we will begin the discussion with the general changes in wages & benefits because it represents about 80.0% of VTA’s total operating expense (excluding purchased transportation services and debt service.) Wages & Benefits In FY 2002-03, labor cost has increased by $5.2 million, or 2.3%, to $227.9 million when compared to the revised budget despite a net reduction of 254 positions (335 deletions and 81 additions that include 70 Operators on long-term leave) as part of the cost reduction process. The major components of this overall increase are: • • • • • $21.8 million increase stipulated in contractual agreements for salary realignments, pay rate increases and pay progression in FY 2001-02; $2.4 million increase in ATU pension in FY 2002-03; $1.0 million increase for new additions in FY 2002-03; $0.3 million increase for other; and ($20.3) million decrease due to position reductions in FY 2002-03.

Budgeted Position Changes By Classification Classification FY 2001-02 FY 2002-03 Net Revised Budget Change Operators 1,143 1,049 (94) Operators (Part-Time) 50 0 (50) Operator Trainees 27 3 (24) Maintenance 616 560 (56) Support Services 1,058 957 (101) Non-Transit 26 27 1 Total Funded Positions 2,920 2,596 (324) Partially funded Operators 0 70 70 Total Positions 2,920 2,666 254

% Change (8.2%) (100.0%) (88.9%) (9.1%) (9.5%) 3.8% (11.1%) NA (8.7%)

Service Reduction We annually review our service plan and make the appropriate route and service adjustments. The decline in ridership, coupled with our financial difficulties, compelled us to reduce or discontinue services for some routes -- without increasing services in other routes, as we normally would have done, in the FY 2002-03 service plan. We need to concentrate our reduced resources on the more productive routes and services. We

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ propose a 4.4% service reduction for buses and an 11.7% service reductions for light rail (by increasing the time between trains from ten minutes to twelve minutes), for a total reduction of 5.0% for the system. In general, the proposal includes: five bus lines to be discontinued; service frequency and service hour changes for 49 bus lines and Light Rail; and routing changes for eight bus lines. This 5% service reduction will decrease the needs for Bus Operators from 1,068 to 955 and Light Rail Operator from 100 to 96. The total savings for wages and benefits for the Operators is estimated at $8.3 million. In addition, there are corresponding savings in the Maintenance Division. They are: • • • • Forty-nine positions (Service Workers, Service Mechanics, Transit Mechanics, and Overhaul and Repair Mechanics) for $3.2 million; Diesel for $328,000; Traction power for $305,000; and Parts for $685,000.
FY 1998-99 In thousands Service Miles: Actual FY 1999-00 Actual FY 2000-01 Actual FY 2001-02 Adopted Revised Budget Budget FY 2002-03 Budget

Bus % Change Light Rail Train % Change Total Service Miles % Change Light Rail Car % Change
Service Hours

22,400 1,360 23,760

22,924 2.3% 1,651 21.4% 24,575 3.4% 2,791 24.1%

22,640 -1.2% 1,927 16.7% 24,567 0.0% 2,885 3.4%

23,479 3.7% 2,088 8.4% 25,567 4.1% 3,278 13.6%

21,037 -7.1% 2,080 7.9% 23,117 -5.9% 3,151 9.2%

21,174 0.7% 1,832 -11.9% 23,006 -0.5% 2,655 -15.7%

2,249

Bus % Change Light Rail Train % Change Total Service Miles % Change Light Rail Car % Change

1,566 89 1,655

1,624 3.7% 113 27.0% 1,737 5.0% 189 28.6%

1,617 -0.4% 137 21.2% 1,754 1.0% 198 4.8%

1,687 4.3% 141 2.9% 1,828 4.2% 221 11.6%

1,603 -0.9% 138 0.7% 1,741 -0.7% 213 7.6%

1,538 -4.1% 122 -11.6% 1,660 -4.7% 177 -16.9%

147

Administrative and Support Services Cost Reductions All managers of administrative and support functions were challenged to develop a 15.0% budget reduction proposal. Department managers were requested to identify the programs, activities, tasks or projects that their departments are performing and the resources in terms of personnel, materials and services allocated to them individually, (a

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ combination of zero-based budgeting and activity based costing). A panel of three senior executives was formed to review these programs with the department managers. Programs were recommended for scaling down or deletion based on the following major criteria: • • • • • How critical are they to VTA’s core business? What is the return on investment for VTA’s Internal Controls? How much will they degrade our services and affect our customers? Can efficiency be improved? Can VTA employees be substituted for consultants to perform the task or activity?

Merely trimming budget costs or modifying business processes cannot achieve a 15.0% reduction on costs. We have to reduce positions in order to achieve the cost reduction target since salaries and benefits represent about 80.0% of our operating expense budget, (excluding purchased transportation services and debt service). The following are the details of the major changes each division proposes to implement the 15.0% cost reduction plan, and the potential impacts on services provided to our clients, i.e., services we cannot perform due to lack of resources, as well as to our employees. Office of the General Manager We will suspend the VTA’s organization-wide Record Management Program due to the elimination of the Record Management Supervisor and Management Analyst positions. The Board Office proposes the elimination of a Senior Board Assistant, a Board Assistant and two Office Specialist II positions. These eliminations will critically reduce the level and immediacy of support the department will give to the Deferred Compensation Board, VTA/ATU Board of Pension, selected Policy Advisory Boards and the CODE committee. For instance, meeting minutes and records may not be available for approval at the next monthly meeting but rather on a bi-monthly or quarterly schedule. Operations -- Administration Protective Services proposes to reduce Pinkerton services hours for late-night security guard coverage at the Cottle, Snell, Blossom Hill, and Capitol Light Rail Stations and daytime security guard coverage at the Reamwood and Vienna Light Rail Station. Furthermore, we reduce the utilization of Sheriff’s Deputies. The change represents a $253,000 reduction from the FY 2001-02 Revised Budget. A Senior Management Analyst position is requested for $107,000. In total, the proposed budget of this cost center is $172,000 less than the revised budget. Transit Technical Training and Rail Activation proposes a net savings of $1.4 million in the FY 2002-03 budget. The operator-training program will need 28 fewer positions, which includes 24 full-time-equivalent Bus Operator Trainee positions and four Technical Trainer positions. The savings from the reduction will be $1.4 million. A new Signal
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VTA FY 2002-03 BUDGET

______________________________________________________________________________ Supervisor position, $113,000 per year, is proposed for supporting the Vasona Light Rail Corridor project and Activation. The Service Planning unit proposes to reduce one Transit Service Development Specialist I position and defer conducting the On-Board Passenger survey, which includes deleting one Transit Service Planner position and $150,000 in professional services. The total proposed budget of this unit has been reduced by $181,000. Accessible Services proposes to reduce the FY 2002-03 budget by $1,014,000, which includes scaling back in Professional Service for reducing the scope of work in developing a comprehensive Paratransit eligibility and appeals process, and eliminating a Management Analyst position that currently oversees the Homeless Pass Program and Job Access /Reverse Commute Program. Operations Planning has proposed a reduction of $19,000, excluding non-purchased transportation services, by purchasing fewer amenities items such as benches, bike lockers, signage, and trash cans for the public. The Transportation Division proposes a reorganization to achieve a more efficient operation. The reorganization will have a net reduction of 22 positions (26 deletions and four additions) for $1.7 million. The deletions include 14 Transit Radio Dispatchers, one Transportation superintendent, one Office Support Supervisor, five Transportation Supervisors- Field positions and five Office Specialists IIs. An addition of a Management Analyst position is requested. Operations -- Maintenance Maintenance Division proposes to delete five Mechanic Trainees, two Light Rail Paint and Body Workers, and four Office Specialists II, but add one Light Rail Vehicle Maintenance Supervisor and five Office Support Supervisors for a net decrease of five positions. The changes will limit Maintenance’s ability to train journey level mechanics in both bus and Light Rail. On the other hand, they will enhance clerical supervision and administrative assistance at the divisions. Administrative Services The FY 2002-03 proposed Administrative Services budget calls for a reduction of $6,219,000 or 18.9% from the FY 2001-02 Revised Budget. This translates into a net reduction of 11 positions, primarily in the areas of Personnel Services and Organizational Development & Training, as well as the serious curtailment or elimination of several programs. The rapid shift in the local employment market, which was reflected by a VTA vacancy rate of nearly 20% in some divisions little more than a year ago to one now of nearly full staffing, along with a hiring freeze due to the current economic condition, has necessitated dramatic reductions in the VTA Personnel Services Department. This budget proposes the reduction of two Human Resources Analysts, two Personnel
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VTA FY 2002-03 BUDGET

______________________________________________________________________________ Services Assistants, and three Office Specialist II positions, at a savings of $440,000 primarily in the areas of Recruitment and Selection. In addition to staff reductions, the FY 2002-03 Budget will also reduce $1.0 million in the areas of recruitment advertising, outside testing services, and extra-help throughout VTA. Although these reductions can be afforded by the current economic downturn, we may once again find ourselves in the same position we were recently in when the economy does rebound – poorly positioned to recruit and hire people to fill key vacant positions. Another department recommending significant reductions is Organizational Development & Training (OD&T). In order to meet the restrictions imposed by our financial condition, OD&T proposes the reduction of two OD&T Specialists, one Associate OD&T Specialist, and one Office Specialist II position. This staff reduction, along with cutbacks in outside training and other services, will save approximately $1,146,000 and result in diminished Professional Development, Computer Training, and Employee Recognition Programs. The Benefits Department is proposing the elimination of VTA’s Wellness Program and the Flexible Spending Plan Accounts. These program eliminations will result in the reduction of one Human Resources Analyst and an overall savings of approximately $140,000. Although VTA will continue the Employee Assistance Program (EAP), this action will eliminate Health Fairs, Employee Health Assessments, Employee Flu Shots, Vacation Donations, and other related activities. The Equal Employment Opportunity/Affirmative Action Program has been unable to meet all of its program responsibilities with its current complement of staff and requests the addition of one Senior Human Resources Analyst. This position will ensure that VTA is able to fully comply with federally mandated EEO/AA requirements and potentially reduce costs associated with civil rights issues that progress to grievances, arbitrations, and/or lawsuits. The cost of this position is $112,000. VTA’s Information Technology (IT) Department is proposing a total of $3.8 million in budgetary reductions. The primary reduction is in the area of outside professional services, which IT is proposing to reduce by $3.2 million. This is being accomplished by the transferring of knowledge and expertise from consultants to VTA staff, primarily in the areas of SAP and the various Capital Projects Business Applications. Other savings will be realized by extending the lifecycle of desktop PCs. One area of recommended increase is the addition of one Senior Programming Analyst for Internal Applications as we move from consultant support to self-sufficiency. Construction The Construction Division is proposing a budget with expenditure reductions of $865,000. The major component of these reductions is the deletion of ten positions, including two Associate Transportation Engineers, one Assistant Civil Engineer, one Office Specialist II, two Engineering Aides, one Senior Facilities Engineer and three Senior Construction Inspectors. The bulk of these reductions occur in the area of VTA
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VTA FY 2002-03 BUDGET

______________________________________________________________________________ Facilities Design & Construction, which has seen a large reduction in the VTA Capital Program that it supports. These include scope reductions to the Cerone Complex Expansion and Rehabilitation Project, the Bus Stop Improvement Program, the Facilities Modification & Space Planning Program, and the Pavement Management Program. Development/Congestion Management The FY 2002-03 proposed budget for Development/Congestion Management includes major reductions in the areas of Marketing & Customer Services and Planning & Development. The reductions, to both staffing and non-labor accounts, in these two departments total $2,150,000. They result in program curtailments, deferrals, and eliminations. Planning & Development: The Grants Management unit is eliminating one Senior Transportation Planner in Programming & Grants and one Transportation Planner I/II/III at a savings of $213,000. These cutbacks will result in a reduced level of liaison and coordination in the management and administration of capital grants as to ensure full grant utilization. There will also be a diminishment of general grant support. The Planning unit is reducing four positions, including one Senior Transportation Planner, two Transportation Planner I/II/IIIs, and one Board Clerk. These reductions will realize $367,000 in savings, but will result in a reduced level of program support. Some programs, including General Transit Planning, TOD Program, and Caltrain Corridor Planning, will see curtailed activity. In some cases, this will mean focusing on the most critical issues and taking a less-proactive role in others. This will also mean that attention to recurring unforeseen requests from the community and the Board will see adverse response times or come at the expense of attention to other important programs. In addition, this budget proposes a one-year deferral of VTP 2020’s Seven Corridors Planning and Major Investment Studies. The Real Estate Department is proposing the reduction of two Associate Real Estate Agents as a result of the winding down of real estate activities in support of the 1996 Measure B Program. Although there will be no discernable short-term program impact from this reduction, there will be a need to readdress these deleted positions once acquisition and relocation activities gear up in support of the BART and Downtown/East Valley projects. This action will offer a savings of $205,000. The Planning and Development Administrative unit is deleting one Administrative Support Officer at a savings of $79,000. Existing staff will have to pick up some of the activities of this position. There will likely be a negative impact upon some of those activities, which include fiscal and personnel monitoring, and Committee and Board support.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ Marketing and Customer Service: Community Outreach is proposing a budget with reductions to a level commensurate with that being funded by the County for the 1996 Measure B Program, along with 2000 Measure A activities. To that end, this budget proposes the reduction of two Public Communications Specialist IIs, three Office Specialist IIs, one Community Outreach Program Manager, one Management Analyst, and one Secretary. These reductions, along with other reductions in outside services and employee recognition, total $1,068,000. The Measure B Transportation Improvement Program (MBTIP) County staff desires to pay for a total of six community outreach positions in a manner that will not provide managerial, administrative, or creative services (graphics) support. Like VTA, the MBTIP is experiencing a similar revenue shortfall and desires to reduce levels of service. Unfortunately, VTA can no longer continue to absorb excess project delivery costs to the extent that it has in the past. The Customer Service Department is proposing a budget with significant reductions that reflect both the proposed service reductions and the need to make reductions as a result of the current economic situation. To that end, this budget proposes reducing one Senior Information Services Representative and five Information Services Representatives, at an estimated savings of $325,000. These reductions will likely result in slower response times to customer inquiries. The area of Market Development is putting forward a budget proposal that eliminates one Advertising Coordinator in the Sales Program unit, one Graphic Designer in Creative Services, and one Office Specialist in Market Development Administration. These reductions, in conjunction with cutbacks to media advertising and outside professional services, total $711,000. The Public Communications unit is eliminating one Public Communications Specialist II, along with reductions to professional services, for a savings of $155,000. Fiscal Resources Fiscal Resources proposes to delete 15 positions from the current 150 authorized positions in the Division. Total savings in salaries and benefits from these deleted positions is estimated at $1.2 million or a reduction of 8.7%. To achieve such a reduction, it is necessary to change some current business practices. The Disbursement Department recommends increasing the tolerance level in matching purchase orders and invoices. The Purchasing Department proposes the issuance of more procurement cards to VTA departments and requires the use of these cards for purchases with value less than $2,500. By implementing these changes, one Account Clerk II position in Disbursement and one Buyer Assistant position in Purchasing can be deleted. Internal Audit will be asked to perform audits on these two new processes to limit our exposure. Another change is to consolidate clerical support in the departments of Investment Services, Internal Audits, and Revenues Services. One Management

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ Secretary will support these three departments. An Office Specialist II position will be deleted from Revenue Service. In addition, Fiscal Resources Administration proposes to delete one Account Clerk position. Debt Administration and Business Analysis is proposing to eliminate three vacant positions: one Financial Analyst, one Accountant III and one Management Analyst. Revenue Services recommends deleting one more office support position (an Accountant III position). Another department proposes significant reduction is Contracts and Materials Management (CAMM). The department recommends eliminating four positions: one Management Analyst in CAMM administration; and one Senior Construction Contracts Administrator, one Contracts Administrator II and one Assistant Contracts Administrator in Contracting. Financial Accounting plans to eliminate one Accountant III position. Disbursement proposes to reduce one Senior Accountant and two Accountant Assistants. Furthermore, the division reduces $510,000 from Professional & Special Services (primarily by eliminating some financial consulting services in the Debt Administration and Business Analysis Department) and $384,000 from Other Services (primarily by eliminating expenditures on Media Advertising and Promotion in the Contracting Department) to achieve the 15% target. 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 contingency fund is established within the Office of the General Manager to fund urgent and unexpected programs or projects. During development of the FY 1997-98 Budget, the Administration and Finance Committee recommended that VTA’s budget policy should include the establishment of a contingency fund (i.e., the General Manager’s unallocated fund) at 3.0% of the operating budget. Most of the fund has been used to fund new capital projects. However, due to the current financial situation, we do not believe that we will launch more non-critical new capital projects and new programs in FY 2002-03. Consequently, we should need only $5.0 million for contingency purposes. In the FY 2001-02 Adopted Budget, we budgeted $10.4 million for the whole year. In the Revised Budget, due to transfer-outs and the budget reduction, the fund was reduced to $1.5 million -- the amount we believed would be sufficient to fund any contingencies arising in the last two months of the fiscal year. The $3.5 million replenishment would bring the contingency fund needed for the whole FY 2002-03 to $5.0 million, which is $5.4 million or 52.0% less than the FY 02 Adopted Budget. We will re-institute the 3% policy once our financial conditions improve. Reimbursements This item is used primarily by three divisions for two completely different purposes. The Maintenance Division uses it to record internal repair cost transfers; the Development/Congestion Management and Construction Division use it to accumulate capitalized labor costs for project cost monitoring and grant billing purposes. Due to
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VTA FY 2002-03 BUDGET

______________________________________________________________________________ budget development timing constraints, the FY 2002-03 Reimbursement number was basically generated by escalating the FY 2001-02 Adopted Budget number by the inflation factor of 4.0%. It shows an increase of $1.8 million to $16.7 million. We believe it is close to the true number in FY 2002-03. Nonetheless, we will refine this item later in the FY 2002-03 Mid-Year Budget if warranted. We are currently in the process of fine-tuning the reimbursement process so that we can maximize allowable recharges to the projects and grants. For labor costs incurred for the 1996 Measure B Transportation Improvement Program, we will not recover 100% of our fully allocated expenditures. As stated in the Master Agreement with the County of Santa Clara, we agreed to seek only reimbursement for the direct costs but not indirect costs. As a result, we budgeted $3.7 million in the NonDepartmental cost center to reflect the indirect costs VTA will absorb. ADA Paratransit Paratransit ridership continues to increase. We project an increase of 8.0% to 1.1 million riders in FY 2002-03 over the FY 2001-02 Revised Budget. The ADA Paratransit program cost $11.1 million in FY 1997-98. This year, we needed to augment the budget during the mid-year review. We added $7.3 million to bring the program budget to $32.4 million. VTA’s Internal Auditors, Program staff and outside consultants are currently conducting a performance review of the Paratransit program. The purpose of the review is to assess the cost of providing the service and identify various cost-containment strategies. Pending completion of the review, we have budgeted the ADA FY 2002-03 program at the FY 2001-02 Revised Budget level. Without such cost containments, program expenses were projected to increase to $38.2 million.
FY 1998-99 In thousands Actual FY 1999-00 Actual FY 2000-01 Actual FY 2001-02 Adopted Revised Budget Budget FY 2002-03 Budget

ADA Trips % Change ADA Operating Expense % Change Net Cost per Trip % Change $

646

779 20.6% $ 16,443 $ 13.3% 21.11 $ -6.0%

860 10.4% 21,558 $ 31.1% 25.07 $ 18.7%

1,018 18.4% 25,152 $ 16.7% 24.71 $ -1.4%

1,018 18.4% 32,452 $ 50.5% 31.88 $ 27.2%

1,099 8.0% 32,452 0.0% 29.53 -7.4%

14,510

$

22.46

$

Caltrain The Peninsula Corridor Joint Powers Board (PCJPB) preliminary FY 2002-03 Operating Budget was developed with the goal of not increasing the member subsidies above the FY 2001-02 levels. PCJPB staff responded by proposing service levels of 76 trains per day on the Mainline, (i.e. between San Francisco and San Jose). This represents a four train per day decrease from FY 2001-02 service levels. The proposed budget holds the

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ Gilroy to San Jose service at 8 trains per day. The VTA share to underwrite the proposed service is $14.1 million for FY 2002-03, the same amount we provided in the current year. PCJPB staff recommended a Capital Budget calling for $22.3 million in local match from the three partners. This would translate to a $7.4 million obligation for VTA. Included in the Caltrain proposed Capital Budget is $8.6 million for advancing the electrification of Caltrain, all locally funded. VTA staff is recommending that we contribute $2.5 million towards local match. We are also recommending that VTA swaps $2 million of FTA Section 5309 Rail Modernization Funds with San Mateo County Transportation Authority for an equivalent amount of sales tax. This will bring the total local match to $4.5 million. We believe this is the minimum amount necessary to match state and federal grants which are programmed to activities that are essential to reconstruct the railroad infrastructure and is consistent with the Rapid Rail commitments we made or implied to our partners. Staff is developing recommendations regarding potential modifications to the 1996 Measure B Transportation Improvement Program Caltrain Plan. We anticipate one such recommendation will be to reprogram approximately $10.7 million, (including the $2.5 million described above) in Measure B funding to leverage state and federal grants associated with Caltrain’s Rapid Rail Program. VTA’s current contribution for Caltrain is 42% of the net operating expenses, based on a formula included in the Joint Powers Agreement. Altamont Commuter Express Rail Altamont Commuter Express (ACE) staff has developed a draft FY 2002-03 budget, which assumes continuing the operation of the three current weekday roundtrip trains. Staff representatives of two of the ACE member agencies, VTA and the Alameda County Management Agency, have advised ACE staff that total contributions for ACE in FY 200203 from the these two respective agencies will be held at the FY 2001-02 level due to current economic conditions. VTA’s adopted FY 2001-02 budget includes $5.1 million for ACE. This includes VTA’s local member agency share for operating and capital budgets and the full cost of ACE shuttles in Santa Clara, including grant funds and local match from the member agencies for the shuttles. This amount is projected to be sufficient to fund VTA’s share of the cost to continue operation of the three ACE round trip trains. VTA’s current contribution is 43% of the net expenses. VTA’s budget for ACE also includes the full costs of the ACE shuttles operated in Santa Clara County. VTA staff manages this program and contracts with a private 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 Santa Clara Stations and for ACE ticketing services at San Jose Diridon Station.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ FY 2001-02 ACCOMPLISHMENTS ADMINISTRATIVE SERVICES • Completion of the Project Controls Software Tools (PCST) project on time and on budget. • Completion of the Data Center upgrade and consolidation project. • Completed upgrade of VTA.org website. • Improved internal IT controls regarding asset management, budget and expense, purchasing and contracts. • Completed salary studies for remaining classes (a three-year project), thereby bringing VTA salaries in line with the Santa Clara Valley market. • Successfully effected a consolidation and re-organization of work functions within VTA. FISCAL RESOURCES • Implementation of a pre-qualification pilot program of VTA contractors and subcontractors to ensure that all who parties engaged in business with VTA are responsible entities by looking at ways to apply “responsible bidder” criteria to subcontractors as well as prime contractors. • Coordinated startup of Translink regional electronic fare card demonstration program on selected VTA services. CAPITAL IMPROVEMENTS • Opened the Moffett Park Station on the Tasman West line in Sunnyvale, the first light rail station constructed by a private developer, the Jay Paul Company. • Completed design for raising the Guadalupe platforms on the north line. • Temporary landings construction started on the Guadalupe platforms, allowing for the operation of low-floor light rail vehicles on the system. • Completed construction of the Guadalupe Corridor Retrofit with fiber-optic communication and the Power Sectionalization Project as scheduled. • Completed installation of ticket vending machines on the Guadalupe and Tasman Light Rail Corridors. • Completed construction of North Division Reconstruction Project. • Started construction of Cerone O&R Division Improvements, Cerone ZEB Demonstration Project, and Guadalupe LRV Facility Expansion. • Completed construction of the Gilroy Caltrain Transit Center, West Valley College Transit Center, Moffett Park LRT Station and Eastridge Transit Center Improvements, Line 22 Bus Queue Jump Lane Phase 1 Project, and upgraded four bridges for the LRT Bridge Seismic Retrofit program. • Improved 27 sites as part of the ADA Access Program, nine sites were improved under the Bus Stop Pavement Restoration Program, eleven bus stops were improved under the Line 22 Articulated Bus Improvements Program, and 29 sites were improved under the Monterey Bus Stop Improvements program.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ • Completed construction contracts for six facility modifications with overall construction value of $478,000.

1996 MEASURE B TRANSPORTATION IMPROVEMENT PROGRAM Transit Program: • Advertised and awarded contracts for the overhead contact system/traction power system and the signal/communication systems for the Tasman East, Capitol and Vasona Light Rail Projects. • Advertised, award and started construction in downtown San Jose railroad segment and on the Meridian/Highway 17 structures for the Vasona Light Rail Project. • Resolved outstanding issues at the Hamilton Avenue light rail crossing, allowing for the award of the structures contract for the Vasona Light Rail Project. • Completed construction on the pedestrian tunnel and the portion of the light rail tunnel within the Caltrain Yard at Diridon train station for the Vasona Light Rail Project. • Property acquisition of UPRR Vasona railroad and operations of gated street crossings agreement. • VTA, Caltrain and UPRR signed a construction and engineering agreement for the Caltrain Service Improvements Project. • Design completed and construction to begin on the double track from Tamien Station to Lick Station on the Caltrain Service Improvements Project. Highway Program: • Began construction work on the following highway projects: (a) widening of I-880 in north San Jose; (b) improvements to the Highways 85/87 Interchange in south San Jose; (c) widening of Route 101 in south San Jose and Morgan Hill; (d) improvements to the Route 85/101 (South) interchange in south San Jose; (e) an early utility relocation contract for the Route 237/I-880 Interchange project in Milpitas; (f) two “early delivery” projects on Route 17 in Campbell: 17H completed and 17D under construction. • Began construction on the combined environmental mitigation site for the Measure B program on Coyote Creek in south San Jose. • Completed the CEQA environmental approval for the Route 85/101 (North) Interchange project in Mountain View. • Continued progress toward the completion of the environmental documents for all of the highway projects included in the Program. 2000 MEASURE A TRANSIT IMPROVEMENT PROGRAM • Selected a Preferred Investment Strategy for the Silicon Valley Rapid Transit Corridor Study of BART along the UPRR Alignment option. • Completed Comprehensive Agreement between BART and VTA for a BART extension into Milpitas, San Jose and Santa Clara. • Continued the conceptual studies for the Downtown East Valley Project.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ MARKETING • Held over 70 community meetings to promote and obtain input on capital projects. • Developed a program to include design enhancements for VTP 2020 projects, and developed bylaws for the VTP 2020 Design Enhancements Committee. • Selected fourteen artists to design and fabricate CODE projects for 1996 Measure B Highway and Rail projects. • Served over 550,000 telephone-based Customer Service requests. • Included over 10,000 new employees to the employer-based Eco Pass program. OPERATIONS ADMINISTRATION • Implemented a new Attendance Program for ATU represented employees. The program provides incentives for employees who report to work on time on a daily basis. It also provides for a disciplinary process for employees who incur absences. • Started the implementation of the Closed Circuit Television (CCTV) Surveillance program with the delivery of 52 low-floor buses, the retrofit of 94 buses of the current fleet, and on 20 low-floor light rail vehicles. • Improved security at multi-modal transfer centers in response to the national call for heightened security. • Conducted a comprehensive review and revision of the Light Rail Standard Operating Procedures (SOP’s). Established a new Bus Rules and Procedures Development committee to review, modify and institute Rules and Procedures for the VTA system. • Identified, designed and instituted new wayside system signage (Bell, Low Noise Zone, Stop and No Trespassing) to improve operational safety on the Guadalupe and Tasman lines. • The VTA Rail Activation methodology instituted to activate the Tasman Line I-880 extension was cited by the CPUC as the “model” for all state rail activation efforts. • Installed the Advanced Communications System project including new Operations Control Center, new fleet wide radio system with GPS tracking capability, automated next stop annunciation, and automatic passenger counters. Completed system will come on-line by the end of 2002. • Began approval process with VTA Board of Directors and participating cities/county for the 200 shelter expansion as part of Transit Shelter Advertising Program. • Implemented 2nd cycle of FTA grant-funded Job Access/Reverse Commute Project and successfully obtained funding for 3rd cycle of funding. • Maintained compliance with ADA Paratransit requirements, with year-to-date ridership increasing 18.2% over prior year. Completed the implementation of requirements under the FTA Voluntary Compliance Key Station Plan Agreement. • Developed the FY 2002/2003 Transit Service Reduction Plan, including community meetings, and CEQA process and presentations to various city councils. MAINTENANCE • • Accepted and placed 136 low-floor Gillig buses into revenue service. Received 20 new low-floor light rail vehicles and 20 new 60-foot low-floor articulated buses from New Flyer of America, Inc.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ • • • • • Awarded a contract for the purchase of three hydrogen fuel cell buses a contract for the installation and maintenance of a hydrogen fueling station. Completed the installation of Yield to Bus Signs on all buses in revenue service. Completed the second class of the Transit Mechanic Training Program and continued the Orientation Training Program for all new Service Mechanics. Implemented the new Light Rail Electro Mechanic Training Program. Installed 35 new engines on the 9200 series buses to reduce particulate matter emissions. Completed Phase I construction of the new North Operating Division facility. The new Operations and Maintenance building, which accommodates up to 150 buses (including the 40 articulated buses), is now operational. Started Phase II construction that includes the fuel island, bus wash, fencing, pavement and old building demolition.

TRANSPORTATION • Implemented a Back to Basics Program in the Transportation Department to promote the provision of safe, reliable, and customer friendly services. The Back to Basics Program has three components: Safety, Customer Service and Operational procedures and efficiency. The Program includes on going management and operator communications to insure compliance. Initial focus has been placed on safety and customer service issues to include seatbelt usage, schedule adherence, use of electronic equipment, and calling of major intersections and stops. Established a Service Management Unit responsible for ensuring that service is delivered in a safe, efficient, and reliable manner by coordinating the following functions: radio control, field supervision, dispatch, and field maintenance. FY 2002-03 GOALS ADMINISTRATIVE SERVICES • Continue to reduce overall IT costs through: o Complete knowledge transfer from consultants to VTA employees, and then releasing consultants on schedule to achieve planned cost savings. o Centralization of IT management and activity. • Continue to focus on retention and recruitment of qualified employees. • Successfully negotiate equitable labor agreements with the: o Transportation Authority Engineers and Architects’ Association. o Service Workers Local 715 Service Employees International Union, AFL-CIO. Santa Clara Valley Transportation Authority Chapter. o County Employees Management Association Santa Clara Valley Transportation Authority Chapter. FISCAL RESOURCES • Enter into a subleasing transaction involving VTA’s Light Rail vehicles to Salt Lake City and Sacramento Regional Transit District.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ • • • Develop long range plans with sustainable financial capacity. Develop a review process for finding and achieving the efficiencies and effectiveness of VTA’s services in conjunction with the Business Review Team. Acceptance of the State Uniform Certification Program (UCP) recently approved by the U.S. DOT (Department of Transportation). VTA representatives participated during a three-year period at a statewide level working on the creation and implementation of this program. Now, small businesses seeking DBE certification can apply with one certifying agency (VTA being one of few in the Bay Area) and, when approved, will be included in a statewide database. California’s program was one of the first approved by the DOT.

CAPITAL IMPROVEMENTS • Complete construction of projects in the Facilities Improvement Program including, Guadalupe LRV Facility Shop Expansion, Parts Storage Building and MOW Building Improvements, the Cerone O&R Division Improvements Project, and the Cerone ZEB Demonstration Project. • Begin construction of Guadalupe platform modifications to accommodate low-floor light rail vehicles. • Advertise and award Light Rail System T-Signals Retrofit Project, which will retrofit T-signals with the new Manual of Uniform Traffic Control Devices on the Guadalupe and Tasman Light Rail Corridors. • Improve an additional 19 sites for the Bus Stop Restoration Program. • Complete construction of the Palo Alto Depot Renovation and De Anza College Transit Center. • Complete construction on the LRT Station Signage Project and the Morgan Hill Repeater Station. • Implement the Facilities Modification Program per Operations and other divisions’ requests. 1996 MEASURE B TRANSPORTATION IMPROVEMENT PROGRAM Transit Program: • Advertise and award station contracts for the Vasona Light Rail Project. • Complete construction of the San Jose Diridon light rail tunnel for the Vasona Project. • Continue construction of the Vasona Light Rail Project as scheduled and budgeted. • Complete the major Tasman East civil/structural and the civil/trackwork contracts and award the stations/park and ride contract. • Award the Capitol Light Rail Stations contract. • Construction completed on the double track from Tamien Station to Lick Station for the Caltrain Service Improvements Project. • Define the Gilroy south expansion and implement design on the Gilroy station and storage tracks for the Caltrain Service Improvements Project. • Start construction on four of the 1996 Measure A/B Caltrain Improvement Program projects to include: Lawrence Bus/Shuttle & Parking Expansion; Palo Alto Transit

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ Center Improvements; San Martin Parking Expansion Phase Two; and Santa Clara Parking & Bus Expansion. Highway Program: • Open Route 101 to four lanes in each direction by completion of construction on Route 101 Widening contract and interim milestone of Route 85/101 South Interchange contract. • Complete construction on the following contracts: (a) Route 237/I-880 Interchange Stage C Phase 1; (b) Route 17 D and Route 17 I; (c) Route 152 Phase A1. • Continued construction on I-880 Widening and Route 85/87 Interchange contracts. • Begin construction on the following contracts: (a) Route 85/101 North Interchange; (b) Route 237/I-880 Interchange Stage C Phase 2; (c) Consolidated Biological Mitigation Site Phase 2 • Continued progress toward environmental approval and design completion for all remaining highway projects in program. 2000 MEASURE A TRANSIT IMPROVEMENT PROGRAM • Begin Conceptual Engineering and Final EIS/EIR for Silicon Valley Rapid Transit Corridor. • Complete negotiations for UPRR Right of Way for Silicon Valley Rapid Transit Corridor. • Develop new BART vehicle specification in conjunction with BART and the Warm Springs extension. • Develop Project Management Plan for Silicon Valley Rapid Transit Project. • Prepare Requests for Proposals for engineering and program management services for the Silicon Valley Rapid Transit Project. MARKETING • Continue community outreach efforts to the extent resources allow for all capital projects in the planning/environmental and construction phases. • Increase ridership on VTA services targeting improvements in off-peak periods. • Maintain the Employer Eco Pass program at a ratio of 10% of the countywide workforce. • Continue to add residential communities and residents to the Residential Eco Pass program. OPERATIONS ADMINISTRATION • Continue the expansion of the On Board Closed Circuit Television (CCTV) Surveillance program to include 84 new CCTV equipped low-floor buses and CCTV cameras at selected transit centers and multi-modal transfer centers. By June 2002, a total of 230 buses will be outfitted with CCTV surveillance systems. • Conduct Bus and Light Rail Rules and Procedures Development Committee (RRPD & BRPD) meetings to review, modify and institute Rules and Procedures for the VTA system.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ • • • Lead and coordinate all Operations Division responses to active and proposed rail line extension plans, including detailed review of system design elements on Vasona, Capitol, Downtown -East Valley, and Silicon Valley Rapid Transit Corridor projects. Continue System Design review for all light rail projects including the Guadalupe Station Retrofit project. Perform all Bus and Light Rail Operator training. This includes new operator training, annual re-certification training, VTT training, Restricted Access training, Fire/Life Safety training, and numerous operations-related training. Complete Advanced Communications System project including final acceptance and start of warranty. Add new buses into service and overhaul existing buses for the Dumbarton Express. Start construction of the 200 shelter expansion project. Maintain compliance with ADA Paratransit requirements, improve the ADA Paratransit Eligibility Review process and identify additional ADA Paratransit funding sources. Monitor VTA’s bus and light rail operations, and maintain an efficient and effective network design, operating schedules, and operator run assignments. Initiate a Transit Route Improvement Program that assesses route directivity, service coverage by time of day, stop spacing, operational improvements, and local community needs. Incorporate improvements into FY 2004 Transit Service Plan. Develop Bus/Rail Integration plans for the Tasman East/Capitol Light Rail Line.

• • • • •

MAINTENANCE • Miles between mechanical schedule loss: o Bus -- 4,000 miles o Light Rail – 40,000 miles o System – 4.300 miles • Manage the contract for the construction and commissioning of 40 articulated lowfloor buses from New Flyer, and accept and put into service 56 new low-floor buses from Gillig. • Complete construction projects at the North Division and at the Guadalupe Division main shop, WP&S locker room, and warehouse. Complete the master plan study and start construction of the Operations, and Training Annex buildings, reconfiguration of the Maintenance Engineering office and the ISG Disaster Recovery Center. • Complete installation of the hydrogen fueling station at the Cerone Division. • Continue to participate in the California fuel cell partnership. • Develop contract documents for the procurement of a demonstration fleet of Zero Emission Buses and provide engineering support in the development of special fueling systems and other facilities needed to support this fleet. Also develop and implement programs for bus engine overhaul and upgrade to ensure compliance with emission regulations. • Continue the purchase and installation of new engines for the 9200 Bus Series Repower Program to reduce particulate matter emissions.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ • Demonstrate technology that has the potential to reduce NOx emissions by 70% or more on three buses operating in revenue service over a three-year period. The technology tested should reduce NOx emissions and demonstrate the durability of emission control systems. Graduate the third class and begin the fourth class of the Transit Mechanic Training Program and continue the Orientation Training Program for all new Service Mechanics. Manage the contract for the construction and commissioning of 100 low-floor light rail vehicles from Kinkisharyo ,and accept and place into revenue service 32 low-floor light rail vehicles. Manage a contract for a system-wide wheel/rail interface study and develop a longterm wheel and rail maintenance strategy. Manage a consultant contract to evaluate VTA’s contracting strategy for electric power and develop recommendations for a more economical approach to the procurement of electrical power. Complete the Kinkisharyo low-floor light rail vehicle maintenance training for 50 Electro - Mechanics, six Electronic Technicians, and three Light Rail Vehicle Maintenance Supervisors to ensure proper maintenance and repairs for VTA’s new 100 low-floor light rail vehicle fleet.

• • • • •

TRANSPORTATION • Percent of scheduled service operated: o Bus – 99.25% o Light Rail – 99.90% • Miles between chargeable accidents: o Bus – 160,000 miles. o Light Rail – 2,000,000 miles. o System – 175,000 miles. • Complete review of all administrative procedures impacting lost time and revise policies as necessary. • Conduct training to support implementation of Advance Communications Systems to support implementation of articulated buses at North Division. Complete back safe and injury avoidance training for all operators. Conduct training for all Transportation Supervisors and Dispatchers to improve operations.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ OFFICE OF THE GENERAL MANAGER RESPONSIBILITIES The General Manager’s Office is responsible for the management of the Santa Clara Valley Transportation Authority (VTA) according to the policies adopted by the Board of Directors. General duties include the development of program and policy alternatives for consideration by the Board and management of the authority’s staff activities. Specific functions within the General Manager’s Office include support of the Board through the Board Secretary, policy development, strategic planning, and intergovernmental and business relations. MAJOR PROGRAMS The Office of the Board Secretary is responsible for all Board-related activities. These include the preparation and publication of agendas, notices, minutes of meetings, hearings, and other matters within the jurisdiction of the Board. Additionally, the Record Management and Document Control department maintains documents and prepares “as-built” plans for most of the large capital projects and is responsible for VTA’s document reproduction center. The Chief of Staff assists and participates in the planning, organizing, and facilitating the activities of the General Manager. In this capacity, the Chief of Staff facilitates and coordinates with Executive Management on items critical to VTA including strategic planning and analysis, program development, and internal and external policy development. Government Affairs is primarily responsible for developing and coordinating VTA’s legislative and intergovernmental relations programs. Specifically, it analyzes the impact of state and federal legislative issues, and develops and coordinates VTA’s strategy for responding to these issues. It manages VTA’s legislative advocacy efforts in Washington, D.C. and in Sacramento. Government Affairs also coordinates VTA’s outreach efforts to the local community, the cities, and respective state and federal legislative delegations. Policy and Programs serves as VTA’s principal liaison with Joint Powers Boards (Caltrain, ACE, and Capitol Corridor) and Santa Clara County’s representatives to MTC. Policy and Programs supports VTA’s liaison activities with business organizations, other community groups within the county, and to some extent, specific governmental institutions. Various special projects and programs (both internal and external) are also coordinated out of the General Manager’s Office.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________

Board of Directors

Peter M. Cipolla General Manager

Board Secretary Sandra Weymouth

Chief of Staff Denise Daly

Administration Board Office 10 Positions 2 Positions

Record Management & Document Control Tim Ellenberger Manager 19 Positions

Policy & Program Frank Sharpless Manager

Positions: 36 Full Time

Government Affairs Kurt Evans Manager

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VTA FY 2002-03 BUDGET

______________________________________________________________________________
OFFICE OF GENERAL MANAGER % of FY 2000-01 FY 2001-02 FY 2002-03 Adopted Revised Change In thousands Actual Budget Budget Budget from FY 02 Wages & Salaries $ 1,571 $ 2,285 $ 2,305 $ 2,152 -6.6% Benefits 570 873 881 836 -5.1% Materials & Supplies 4 26 26 17 -34.6% Professional & Special Services 324 466 466 373 -20.0% Other Services 323 359 359 351 -2.2% Office Expense 109 29 29 30 3.4% Employee Related Expense 175 168 168 163 -3.0% Leases & Rents 133 143 143 148 3.5% Contingency 10,423 1,500 5,000 233.3% Miscellaneous 364 499 499 462 -7.4% Other Expense 32 32 34 6.3% Total Expense 3,573 15,303 6,408 9,566 49.3% Reimbursements (640) (61) (532) (131) -75.4% Net Total $ 2,933 $ 15,242 $ 5,876 $ 9,435 60.6% Positions 32 41 45 36 -20.0%

MAJOR BUDGETARY CHANGES Wages & Benefits Nine positions are proposed to be eliminated. They are: two Transportation Policy and Program Managers (one will be transferred to CMP), one Transportation Policy and Program Coordinator, one Senior Board Assistant, one Board Assistant, two Office Specialist IIs, one Record Management Supervisor, and one Management Analyst. Total savings is about $780,000. However, due to contractual agreements, pay rate increases have reduced the net savings to $198,000. Contingency During development of the FY 1997-98 Budget, the Administration and Finance Committee recommended that VTA’s budget policy should include the establishment of a contingency fund (i.e., the General Manager’s unallocated fund) at 3.0% of the operating budget. This fund is used to fund urgent and unexpected programs or projects not specifically identified and budgeted. Recognizing that VTA will be reducing programs and refraining from launching new non-critical capital projects, we believe that a contingency fund of $5.0 million will be sufficient for FY 2002-03. In the FY 2001-02 Adopted Budget, we budgeted $10.4 million for the whole year. In the Revised Budget, due to transfer-outs and the budget reduction, the fund was reduced to $1.5 million -- the amount we believed would be sufficient to fund any contingencies arising in the last two months of the fiscal year. The $3.5 million increase would bring the contingency fund needed for the whole FY 2002-03 to $5.0 million, which is $5.4 million or 52.0% less than the FY 02 Adopted Budget. We will re-institute the 3% policy once our financial conditions improve.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ OFFICE OF THE GENERAL COUNSEL RESPONSIBILITIES The General Counsel’s Office provides legal advice and counsel to all of the divisions and departments, as well as to the General Manager and the Board of Directors, with respect to all facets of VTA’s operations, including the Congestion Management Program. The office also retains and oversees outside counsel to provide 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 support 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 and 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 VTA-ATU Pension Board and Deferred Compensation Committee.

Board of Directors

Suzanne Gifford General Counsel

Assistant General Counsel Richard Katzman Kevin Allmand

4 Attorneys

2 Support Positions

Positions: 9 Full-Time

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VTA FY 2002-03 BUDGET

______________________________________________________________________________
OFFICE OF GENERAL COUNSEL % of FY 2000-01 FY 2001-02 FY 2002-03 Adopted Revised Change In thousands Actual Budget Budget Budget from FY 02 Wages & Salaries $ 727 $ 874 $ 874 $ 920 5.3% Benefits 220 334 334 359 7.5% Professional & Special Services 170 343 180 207 15.0% Office Expense 2 24 4 2 -50.0% Employee Related Expense 9 18 13 10 -23.1% Miscellaneous 19 7 24 24 0.0% Total Expense 1,147 1,600 1,429 1,522 6.5% Reimbursements (45) (271) (230) (282) 22.6% Net Total $ 1,102 $ 1,329 $ 1,199 $ 1,240 3.4% Positions 7 9 9 9 0.0%

MAJOR BUDGETARY CHANGES No significant changes.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ OPERATIONS DIVISION – ADMINISTRATION RESPONSIBILITIES The Operations Division is responsible for delivering safe, courteous, and reliable service to the residents of Santa Clara County. This Division consists of three functional units: Administration, Transportation, and Maintenance. Administration consists of the Chief Operating Officer’s administrative unit, Service and Operations Planning, Transportation Technical Training and Rail Activation and Protective Services departments. MAJOR PROGRAMS Service and Operations Planning consists of Service Planning, Accessible Services, and Operations Planning. Service Planning is responsible for planning, scheduling, and monitoring VTA’s 78 bus routes and light rail service. Accessible Services ensures compliance with the Americans with Disabilities Act (ADA) and manages the paratransit service. Operations Planning has responsibility for the operation of light rail and Altamont Commuter Express (ACE) shuttles, and coordination of ACE, Caltrain, Dumbarton Bridge and Highway 17 Express services. In addition, Operations Planning has responsibility for passenger facility planning, coordination of the shelter and bus stop programs, monitoring Tamien Child Care Center operations, analysis and reporting of transit system performance, and management of the Advanced Communication System (ACS) project. Transportation Technical Training and Rail Activation develops and implements the rail activation programs and functions for all planned light rail and commuter rail lines operated by VTA. Successful implementation of the rail projects requires that all tasks necessary for the initiation of revenue service be comprehensively identified and accomplished in a systematic, integrated, and timely fashion. This department is also responsible for the initial and refresher training of Bus and Light Rail operators as well as the development of all rules and procedures governing bus and rail operations. Training responsibilities include Verification of Transit Training safety and renewal classes, customer service training, DMV certification, post-accident retraining, contractor restricted access training, and fire/life safety training for department personnel. Protective Services provides security for VTA bus and light rail service, and facilities. This department coordinates law enforcement activities with the contracted Santa Clara County Sheriff unit and Pinkerton Security (a private security contractor). Protective Services is also responsible for revenue collection and protection, management of VTA’s Lost & Found program, the Vandalism Abatement program, employee security systems, and fare inspection on light rail.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________

Frank T. Martin Chief Operating Officer

Administration 4 Positions

Service & Operations Planning Mike Aro Deputy Director

Transportation Technical Training & Rail Activation Austin Jenkins Deputy Director

Protective Services Ray Frank Chief of Security

Accessible Services George Tacke', Manager 5 Positions Operations Planning Jim Unites, Manager 10 Positions Service Planning Bill Capps, Manager 21 Positions

Administration 2 Positions

Administration 4 Positions

Sheriff's Contract

Transportation Technical Traiing & Rail Activation Vacant, Manager 4 Positions Operations Technical Training Bus 13 Positions Operations Technical Training Rail 7 Positions

Fare Inspection 9 Positions

Security Contract

Positions: 83 Full-Time

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VTA FY 2002-03 BUDGET

______________________________________________________________________________
OPERATIONS - ADMINISTRATION % of FY 2000-01 FY 2001-02 FY 2002-03 Adopted Revised Change In thousands Actual Budget Budget Budget from FY 02 Wages & Salaries $ 4,989 $ 5,648 $ 6,345 $ 5,238 -17.4% Benefits 1,921 2,446 2,548 2,286 -10.3% Materials & Supplies 256 385 339 258 -23.9% Security 7,304 9,313 9,726 9,473 -2.6% Professional & Special Services 158 643 613 174 -71.6% Other Services 486 108 601 67 -88.9% Utilities 45 76 76 66 -13.2% Data Processing 36 140 140 145 3.6% Office Expense 101 102 110 114 3.6% Employee Related Expense 108 215 219 211 -3.7% Leases & Rents 52 281 181 167 -7.7% Miscellaneous 4 1,293 765 517 -32.4% ADA 21,558 25,152 32,452 32,452 0.0% Caltrain 13,021 14,300 14,300 14,105 -1.4% Caltrain Capital Contribution 2,500 NA Light Rail Shuttles 1,065 1,439 1,439 1,340 -6.9% Altamont Commuter Express 1,522 5,100 5,100 5,100 0.0% Highway 17 Express 482 564 564 587 4.1% Dumbarton Express 143 197 197 250 26.9% Contribution to Other Agencies 208 345 345 278 -19.4% Other Expense 18 17 6 -64.7% Total Expense 53,459 67,765 76,077 75,334 -1.0% Reimbursements (6) NA Net Total $ 53,453 $ 67,765 $ 76,077 $ 75,334 -1.0% Positions 99 113 113 83 -26.5%

MAJOR BUDGETARY CHANGES Subtracting the $2.5 million inclusion of the Caltrain Capital Contribution, which was treated as a capital budget in both FY 2001-02 budgets, from the FY 2002-03 Recommended Budget, the decrease from FY 2001-02 Revised Budget would be $3.2 million, or –4.3%. Protective Services The FY 2002-03 proposed budget for Protective Services has actually been increased by only $253,000 from the revised budget, same as the Adopted Budget, as the department proposes not to implement the approved revised budget augmentation of $413,000 increase in Security. The augmentation was intended to add a second Route Stabilization Team for increasing patrol coverage in East Valley; increase support of the Vandalism Abatement Team and the closed Circuit TV program; and increase security presence at the North Operating Division and Gilroy Caltrain station. The FY 2002-03 budget includes a reduction for late-night security guard coverage at the Cottle, Snell, Blossom Hill and

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ Capitol light rail stations and daytime security coverage at the Reamwood and Vienna light rail stations. A Senior Management Analyst position is proposed for increased security program management including the expanded CCTV program. The annual cost for salary and benefit is $107,000. Transportation Technical Training and Rail Activation Programs The Transportation Technical Training and Rail Activation department proposes a net savings of $1.4 million in the FY 2002-03 budget. The operator-training program will need 28 fewer positions: 24 full-time-equivalent Bus Operator Trainee positions and four Technical Trainer positions. The savings in this training program will be $1,356,000. A new Signal Supervisor position, $113,000 per year, is proposed for supporting the Vasona Light Rail Corridor project and Activation. In addition, the department proposes to reduce its budget by $101,000 in services and supplies. The Service and Operations Planning Service and Operations Planning department proposes savings of approximately $307,000 by deleting four positions. The group recommends deleting an Executive Secretary position in the administrative unit, one Transit Service Development Specialist I position and one Transit Service Planner position in Service Planning, and one Management Analyst position in Accessible Services. Program change recommendations include deferring Service Planning’s FY 2002-03 OnBoard survey while Accessible Services proposes to scale back the scope of work in the development of a comprehensive Paratransit eligibility and appeals process. Operations Planning has proposed a reduction for purchasing fewer public amenity items: benches, bike lockers, signage, and trashcans. The total program reductions will result in another $400,000 savings. Caltrain The Peninsula Corridor Joint Powers Board proposed the VTA share of the preliminary FY 2002-03 Caltrain operating budget to be $14,104,567 and the local match for the capital budget amount to $5,574,720 (The FY 2001-02 Caltrain local capital match is in the capital budget). This operating budget will reduce the current 80 trains per weekday to 76 trains per weekday. VTA recommends reducing the local capital match to $2.5 million by postponing some of the capital projects, such as electrification of the trains, until more funding is available. Altamont Commuter Express Rail Altamont Commuter Express (ACE) staff has developed two draft FY 2002-03 budgets: the first draft budget assumes continuing the operation of the three current weekday roundtrip trains, and the second assumes the operation of a fourth ACE train, starting in FY 2002-03. Staff representatives of two of the ACE member agencies, VTA and the Alameda County Management Agency, have advised ACE staff that total contributions
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VTA FY 2002-03 BUDGET

______________________________________________________________________________ for ACE in FY 2002-03 from the these two respective agencies will be held at the FY 200102 level due to current economic conditions.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ OPERATIONS DIVISION – TRANSPORTATION RESPONSIBILITIES Transportation is responsible for the operation of VTA’s 78 bus routes, t e 18-mile h Guadalupe light rail line, which runs from South San Jose to North San Jose terminating at the Baypointe Station on Tasman Drive, and the 11.7-mile Tasman light rail line, which runs from Mountain View to I-880 in Milpitas. Over 1,100 operators provide more than 24,000,000 miles of bus and light rail service on an annual basis. Three bus operating facilities, one light rail facility, the Operations Control Center, and field supervision unit support transit operations. MAJOR PROGRAMS Bus Transportation consists of Cerone Transportation, Chaboya Transportation, and North Transportation. The section is responsible for the daily operations of VTA’s 78 bus routes. Rail Transportation consists of Guadalupe Transportation. The section is responsible for the daily operations of the Guadalupe and Tasman light rail lines. Service Management consists of the Field Supervision, Operations Control Center, and Dispatch units. The section is responsible for facilitating improved communication and efficiency among all units in the Operations Division.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________
Frank T. Martin Chief Operating Officer

Matthew O. Tucker Deputy Director

Unfunded Positions 70 Positions

Administration 9 Positions

Chaboya Transportation Carolyn Stinemates Superintendent 413 Positions

Guadalupe Transportation Chester Patton Superintendent 104 Positions

Cerone Transportation Rich Golda Superintendent 346 Positions

North Transportation Curt Raitz Superintendent 246 Positions

Service Management Paul Googe Superintendent 2 Positions

Field Supervision Mark Bugna, Kathy Rea Asst. Superintendents 31 Positions

Operations Control Center John Carlson Asst. Superintendent 36 Positions Positions: 955 Full-Time Bus Operators 94 Full-Time LR Operators 138 Other Full-Time Positions 1,187 Total Funded Positions 70 Unfunded Position 1,257 Total Positions

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VTA FY 2002-03 BUDGET

______________________________________________________________________________
OPERATIONS - TRANSPORTATION % of FY 2000-01 FY 2001-02 FY 2002-03 Adopted Revised Change In thousands Actual Budget Budget Budget from FY 02 Wages & Salaries $ 51,444 $ 59,111 $ 59,569 $ 60,906 2.2% Benefits 33,170 38,591 38,691 40,782 5.4% Materials & Supplies 105 170 170 179 5.3% Professional & Special Services 14 158 158 164 3.8% Other Services 46 21 21 22 4.8% Data Processing 41 NA Office Expense 80 92 92 100 8.7% Employee Related Expense 20 106 106 112 5.7% Leases & Rents 45 57 57 60 5.3% Miscellaneous 2 41 41 43 4.9% Other Expense 30 30 35 16.7% Total Expense $ 84,967 $ 98,377 $ 98,935 $ 102,403 3.5% Positions 1,210 1,345 1,356 1,199 -11.6%

MAJOR BUDGETARY CHANGES Wages and Benefits As required by labor agreements, $13.1 million has been added to wages and benefits in FY 2002-03. The increase is caused by approximately $1.5 million in ATU pension, $5.3 million for annual contractual increase, and $6.3 million for accelerated pay progression and realignments. Wages & Benefits – Administrative & Support Services Reduction On the other hand, Transportation Division proposes a significant reduction plan in the administrative and support services. The division proposes a net reduction of 26 nonoperator positions without negatively affecting current operations. The deletion includes 14 Transit Radio Dispatcher positions in Operations Control Center, one Transportation Superintendent position, one Office Support Supervisor position, five Transportation Supervisor- Field positions and five Office Specialist II positions. One Management Analyst position will be added for improvement of operating efficiency. The net annual savings is estimated at $2.1 million. In FY 2001-02 the department has added three Assistant Superintendent positions in Operations Control Center and four Office Support Supervisor positions. The annual cost for these seven positions is estimated at $674,000. Wages & Benefits – Bus and LR Services Reduction The FY 2002-03 budget will bring the operator level down 11.6% from 1,068 full-timeequivalent (FTE) positions to 955 FTE, and Light Rail Operator positions will be reduced by 6% from 100 positions to 94. The total savings in operators is estimated at $8.3 million for wages, benefits and uniforms. The bus service hours have been reduced by 11.8% from 1.7 million in the FY 2001-02 adopted budget to 1.5 million hours in the FY 2002-03

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ proposed budget. Light rail service hours have been reduced by 13.5% from 141,000 in the FY 2001-02 adopted budget to 122,000 in the recommended FY 2002-03 budget. During FY 2001-02, VTA suspended the planned service expansion in January 2002; thus, the revised service level for bus is 1.6 million and 138,000 hours for light rail service. The proposed 5% service reduction in FY 2002-03 is calculated from the current revised service level, not from the originally planned service level.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ OPERATIONS DIVISION – MAINTENANCE RESPONSIBILITIES Maintenance is responsible for maintaining VTA’s fleet of buses and light rail vehicles and the light rail system consisting of track, operating signals, power distribution system, and the adjoining rights-of-way. It maintains all facilities, communications systems and most passenger facilities. Additional responsibilities include materials management, management of all non-revenue vehicles (support vehicles) and maintenance information systems. Maintenance also provides quality assurance and warranty services for all of VTA as well as maintenance related training and maintenance engineering. MAJOR PROGRAMS Bus Maintenance consists of North Maintenance, Chaboya Maintenance, Cerone Maintenance, and Overhaul and Repair. The section is responsible for the timely and reliable maintenance, preventive maintenance, heavy repair, engine rebuilding, other maintenance services, inspections, and servicing of VTA’s active fleet of 461 buses. Rail Maintenance consists of Light Rail Vehicle Maintenance and Way, Power and Signal Maintenance. The section is responsible for the timely and reliable maintenance, preventive maintenance, inspections, repair and servicing of VTA’s fleet of 50 existing light rail vehicles, delivery and acceptance testing of the new low-floor Kinkisharyo light rail vehicles. Way, Power and Signal Maintenance is responsible for timely and reliable maintenance, preventive maintenance of right of way, rail system power, tracks, signals, Supervisory Control and Data Acquisition (SCADA), wayside communications, station facilities and related equipment, and evaluation of rail maintenance efficiency. Facilities Maintenance consists of Facilities Maintenance and Passenger Facilities Maintenance. In addition to maintaining VTA’s Transit Centers and bus stops, this section is responsible for the planned and unscheduled (on-call) facility maintenance including preventive maintenance painting and roofing, inspections, repair of VTA’s buildings, shelters, grounds (except right-of-way), related equipment, hazardous waste disposal, and overall environmental regulatory record keeping and oversight. The Facilities Maintenance Section evaluates the efficiency and safety of all facilities and related equipment. This section also assists in the evaluation and planning of facility modifications, upgrades, expansions, and equipment replacements. Maintenance Support Services consists of Warranty and Quality Assurance, Nonrevenue Vehicle Maintenance, Maintenance Training, and Maintenance Information Systems. The section is responsible for the management of warranty and quality assurance programs, administration and maintenance of the non-revenue vehicle fleet, management and administration of non-revenue vehicle procurement contracts, development and implementation of maintenance training programs, administration of maintenance information systems and the development, administration and distribution of maintenance standard operating procedures.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ 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 VTA’s facilities (Cerone, Chaboya, North, Guadalupe). This section operates one main warehouse and three operating storerooms for bus parts and one main warehouse and one operating storeroom for rail parts. Maintenance Engineering consists of Bus Engineering, Rail Engineering, and Communications Systems Maintenance. Bus and Rail Engineering units are responsible for the management and administration of all revenue vehicle procurement contracts. These units are also responsible for all engineering activities relating to the bus fleet and the light rail system. The Communication Systems Maintenance unit is responsible for the maintenance of the voice telephone systems, all radio communication systems, closed circuit TV, card access systems and miscellaneous communication systems.
Frank T. Martin Chief Operating Officer

George Barlow Deputy Director

Administration 6 Positions

Bus Maintenance Manuel Martinez General Supt. 2 positions

Rail Maintenance Ray Borge General Supt. 3 positions

Facilities Maintenance Art Taylor, Manager 2 positions

Maintenance Support Services Jerry Oxsen Manager 2 Positions Warranty & Quality Assurance Cris Crisologo Manager 10 Positions

Maintenance Engineering Chris Eichin Manager 2 positions Rail Maintenance Engineering Tom Irion Sr. Systems Eng. 4 positions Bus Maintenance Engineering Art Douwes Sr. Mechanical Eng. 3 Positions

Materials Management Glen Bolon, Mgr. 12 positions

Cerone Maintenance Mark Coffield, Supt. 97 Positions

LR Vehicle Maintenance Tom Kennedy, Supt. 97 Positions

Facilities Maintenance Robert Halstead Coordinator 63 Positions Passenger Facilities Maint. Tony Kelly Supervisor 18 Positions

Bus Parts 30 positions

Chaboya Maintenance Jeffrey Flagg, Supt. 105 Positions

Way, Power & Signal Maintenance Curt Nicks, Supt. 79 Positions

NRV Maintenance Carol Peterson Coordinator 6 Positions

Light Rail Parts 8 positions

North Maintenance Heidi Samuels, Supt. 71 Positions

Maintenance Training Dwight Barnes Supervisor 18 Positions Maintenance Information Sys . Sharon McElligott Sr. Mgmt. Analyst 4 positions

Communications Maintenance Bob Gave Mgr. , 4 Positions

Bus Overhaul & Repair Ciro Aguirre, Supt. 94 Positions

Positions: 741 Full-Time

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VTA FY 2002-03 BUDGET

______________________________________________________________________________
OPERATIONS - MAINTENANCE % of FY 2000-01 FY 2001-02 FY 2002-03 Adopted Revised Change Actual Budget Budget Budget from FY 02 $ 32,313 $ 37,130 $ 39,785 $ 40,365 1.5% 18,194 22,536 23,453 24,702 5.3% 14,723 16,916 16,069 15,347 -4.5% 52 574 594 545 -8.2% 3,745 4,614 4,595 5,081 10.6% 6,588 7,706 6,956 5,964 -14.3% 2,083 3,297 4,997 4,000 -20.0% 873 1,084 1,084 1,049 -3.2% 1,740 2,288 2,288 2,286 -0.1% 31 31 -100.0% 132 126 128 119 -7.0% 1,135 1,828 1,828 1,746 -4.5% 113 358 352 308 -12.5% 90 134 136 156 14.7% 28 46 46 57 23.9% 12 1 1 -100.0% 81,821 98,669 102,343 101,725 -0.6% (3,890) (3,858) (4,029) (4,012) -0.4% $ 77,931 $ 94,811 $ 98,314 $ 97,713 -0.6% 693 771 795 741 -6.8%

In thousands Wages & Salaries Benefits Materials & Supplies Professional & Special Services Other Services Fuel Traction Power Tires Utilities Data Processing Office Expense Communications Employee Related Expense Leases & Rents Miscellaneous Other Expense Total Expense Reimbursements Net Total Positions

MAJOR BUDGETARY CHANGES Service Reduction The resources required for bus and light rail revenue vehicle maintenance will be reduced commensurate with the 5% service reduction. For FY 2002-03, Maintenance proposes a reduction of 49 positions for vehicle maintenance, including 22 Service Worker positions, 21 Service Mechanic positions and six O&R Mechanic positions. These position reductions equate to a savings of $3.1 million in wages, benefits and overtime. Materials and supplies will be reduced by approximately $1.3 million, which includes a reduction of $328,000 from low sulfur diesel fuel, $305,000 from traction power, and $685,000 parts, tires, oil and fluids, fasteners, and other miscellaneous reductions. Total service related reductions for Maintenance is approximately $4.4 million. Wages and Benefits As required by labor agreements, $6.3 million has been added to wages and benefits in FY 2002-03. The increase is caused by approximately $1.3 million in ATU pension, $3.2 million for annual contractual increase, and $1.8 million for realignments and annualized costs. On the other hand, Maintenance proposes to delete four Office Specialist II positions and add five Office Support Supervisor positions to supervise clerical staff, administer
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VTA FY 2002-03 BUDGET

______________________________________________________________________________ payroll related functions and processes at the Divisions, and support the Attendance Program. In addition, two Light Rail Paint and Body Worker positions will be deleted and one Light Rail Vehicle Maintenance Supervisor position will be added for the acceptance of the 100 new low-floor light rail vehicles and to provide adequate weekend and shift coverage. Five Mechanic Trainee positions will also be deleted resulting in an annual net reduction of $217,000 in wages, overtime and benefits. Additional savings will be realized for Maintenance by reducing overtime for all administrative and ATU Maintenance staff. This will result in a savings of approximately $1.3 million. Energy Price Assumptions The projection for low sulfur diesel fuel will be reduced from $1.25 to $1.00 per gallon for FY 2002-03. This adjustment reduces the budget by approximately $1.5 million. Maintenance will also reduce the projections for traction power for FY 2002-03. The unit cost will be reduced from $.156 per Kilowatt-hour to $0.134 per Kilowatt-hour. This will further reduce the budget by approximately $707,000. Parts Adjustment A reduction of $948,000 in the parts budget is adjusted to reflect the inventory pricing of the in-house parts rebuild program. Mobile Video Surveillance Equipment Preventive Maintenance Video surveillance equipment is currently installed on selected VTA revenue vehicles to discourage vandalism. Periodic maintenance and repairs will be required for this equipment. The FY 2002-03 budget includes $199,000 for this program. Emissions Reduction Program The Emissions Reduction Program establishes prototype test plans (an after-treatment demonstration) to meet new Nitrogen Oxide (NOx) emission regulations adopted by the California Air Resources Board (CARB) in February 2000. During the pilot test, one bus will be used to demonstrate the potential for a 70% NOx reduction. The tests will be conducted on a total of three buses to verify that 70% NOx reductions can be achieved. The total program cost will be $306,000, and the cost for FY 2002-03 will be $234,000, which includes the purchase and installation of the testing equipment.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ ADMINISTRATIVE SERVICES DIVISION RESPONSIBILITIES The Administrative Services Division is responsible for the business and employee support functions, including information technology, employee/labor relations, organization development and training, personnel selection, employee compensation, employee benefits, employee wellness, substance abuse testing, equal employee opportunity, workers’ compensation, claims management and safety, and risk management. MAJOR PROGRAMS Information Technology Department: The Information Technology Department manages centralized data processing and maintains VTA’s information systems. This includes both application development and support, and infrastructure management. Employee Relations and Organizational Development Department: The Civil Rights Section is responsible for preparing and administering VTA’s Equal Employment Opportunity/Affirmative Action Plan; ensuring compliance with state and federal nondiscrimination laws and regulations; and conducting discrimination complaint investigations. The Employee Relations Section activities are focused on conflict resolution and include negotiating and administering collective bargaining agreements for the four bargaining units (ATU, Local 265; SEIU, Local 715; CEMA; and Engineers and Architects); providing training and consultation on employee relations issues, including grievance handling and discipline actions; assisting the General Counsel in grievance arbitrations; and researching labor trends and issues. The Organizational Development and Training Section is responsible for VTA-wide development and coordination of training. Programs include customer service, computer skills, tuition assistance, and new employee orientation. The Section also focuses on working with mangers and employees to increase employee participation in achieving VTA goals and objectives. Benefits Department: The Benefits Administration Section is responsible for administering employee and retiree benefits programs, including medical, dental, vision, employee assistance, dependent care, life insurance, AD&D, disability insurance and COBRA. The Substance Abuse Control Program is responsible for administering the Drug-Free Workplace Act and the FTA required substance abuse testing program for safety-sensitive employees, including detection, case management, and employee training. The Pension and Deferred Compensation Section is responsible for administering the deferred compensation, ATU, and PERS retirement programs; and serving as staff to the ATU Pension Board and the VTA Deferred Compensation Committee. Personnel Department: The Personnel Selection Section activities include recruitment, including targeted outreach, and examination of candidates to fill vacancies throughout
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VTA FY 2002-03 BUDGET

______________________________________________________________________________ VTA with qualified employees; and the development of Personnel Policies and Procedures to promote sound personnel practices. The Classification and Compensation Section conducts studies to appropriately define the work for classes within VTA and to ensure the compensation is competitive. Position Control and Records activities include reviewing and processing all personnel transactions, maintaining official personnel files, and processing employment verification for employees. Risk Management Department: The Risk Management Department is responsible for identifying, assessing, preventing, controlling and financing accidental losses that result from operations, and rail, facilities, and highway construction activities. Specific functions include fund management of retained losses, management of claims administration programs for both Workers’ Compensation and Liability losses, including transit liability, construction liability, first party damage, property and employee property losses. The department manages risk transfer through the purchase of insurance and establishment of insurance standards for contract transactions. The department is responsib le for VTA’s Environmental Health and Safety Programs, which include employee safety, and health, safety awards programs, environmental compliance and the Emergency Response Plan. Risk Management also administers the employee ADA, FMLA, return to work/modified work and earned benefit payroll integration programs.
Kaye L. Evleth Chief Adminstrative Officer

Administration 3 Positions

Information Technology Department Richard Kurk Chief Information Officer 60 Positions Employee Relations & Organizational Development Candice A. Gonzalez Manager 17 Positions

Personnel Robert Escobar Manager 21 Positions

Risk Management Nanci Eksterowicz Manager 16 Positions

Positions: 136 Full-Time

Benefits Shellie Albright Manager 18 Positions

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VTA FY 2002-03 BUDGET

______________________________________________________________________________
ADMINISTRATIVE SERVICES DIVISION % of FY 2000-01 FY 2001-02 FY 2002-03 Adopted Revised Change In thousands Actual Budget Budget Budget from FY 02 Wages & Salaries $ 7,255 $ 9,427 $ 9,450 $ 9,743 3.1% Benefits 2,705 3,598 3,612 3,780 4.7% Materials & Supplies 2 166 169 105 -37.9% Professional & Special Services 8,804 7,750 8,563 3,831 -55.3% Other Services 1,817 1,240 1,038 309 -70.2% Insurance 4,773 5,273 5,273 5,262 -0.2% Data Processing 2,809 3,413 3,610 2,965 -17.9% Office Expense 166 140 137 123 -10.2% Communications 63 50 50 -100.0% Employee Related Expense 633 1,186 1,034 497 -51.9% Leases & Rents 47 43 38 36 -5.3% Miscellaneous 165 178 118 91 -22.9% Other Expense 40 1 -100.0% Total Expense 29,239 32,504 33,093 26,742 -19.2% Reimbursements (8) (59) (193) (61) -68.4% Net Total $ 29,231 $ 32,445 $ 32,900 $ 26,681 -18.9% Positions 135 149 147 136 -7.5%

MAJOR BUDGETARY CHANGES The FY 2002-03 proposed Administrative Services budget calls for a net reduction of $6,219,000 or 18.9% from the FY 2001-02 Revised Budget. This translates into a net reduction of 11 positions, primarily in the areas of Personnel Services and Organizational Development & Training, as well as the serious curtailment or elimination of several programs. Personnel Services The rapid shift in the local employment market, which was reflected by a VTA vacancy rate of nearly 20% in some divisions little more than a year ago to one now of nearly full staffing, along with a virtual freeze on hiring due to the current economic condition, has necessitated dramatic reductions in the VTA Personnel Services Department. This budget proposes the reduction of two Human Resources Analysts, two Personnel Services Assistants, and three Office Specialist II positions, at a savings of $440,000 primarily in the areas of Recruitment and Selection. In addition to staff reductions, the FY 2002-03 Budget will also reduce $1.0 million in the areas of recruitment advertising, outside testing services, and extra-help throughout VTA. Although these reductions can be afforded by the current economic downturn, we may once again find ourselves in the same position we were recently in when the economy does rebound – poorly positioned to recruit and hire people to fill key vacant positions.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ Organizational Development & Training Another department recommending significant reductions is Organizational Development & Training. In order to meet the restrictions imposed by our financial condition, OD&T proposes the reduction of three OD&T Specialists and one Office Support Supervisor position. This staff reduction, along with cutbacks in outside training and other services, will save approximately $1,146,000 and result in diminished Professional Development and Employee Recognition Programs. Benefits The Benefits Department is proposing the elimination of VTA’s Wellness Program. These program eliminations will result in the reduction of one Human Resources Analyst and an overall savings of approximately $140,000. Although VTA will continue the Employee Assistance Program (EAP), this action will eliminate Health Fairs, Employee Health Assessments, Employee Flu Shots, Vacation Donations, and other related activities. The Equal Employment Opportunity/Affirmative Action Program has been unable to meet all of its program responsibilities with its current complement of staff and requests the addition of one Senior Human Resources Analyst. This position will ensure that VTA is able to fully comply with federally mandated EEO/AA requirements and potentially reduce costs associated with civil rights issues that progress to grievances, arbitrations, and/or lawsuits. The cost of this position is $112,000. Risk Management In the Risk Management program, major increases are seen in the cost of liability insurance due to the activities since September 11. Safety and emergency preparedness activities are an emphasized focus of the Section. Information Technology VTA’s Information Technology (IT) Department is proposing a total of $3.8 million in budgetary reductions. The primary reduction is in the area of outside professional services, which IT is proposing to reduce by $4.0 million. This is being accomplished by the transferring of knowledge and expertise from consultants to VTA staff, primarily in the areas of SAP and the various Capital Projects Business Applications. Other savings will be realized by extending the lifecycle of desktop PC’s. One area of recommended increase is the addition of one Senior Programming Analyst for Internal Applications as we move from consultant support to self-sufficiency.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ CONSTRUCTION DIVISON RESPONSIBILITIES The Construction Division completes engineering designs and implements construction projects that are part of VTA’s rail, facilities, and highway transportation improvement program. The division accomplishes this task by managing the preparation of construction plans and specifications, administration of construction contracts and coordination of project hand-over and acceptance with VTA Operations or city and state agencies. Additionally, the division has ongoing responsibilities in project utility coordination, field-surveying activities including “as-built” drawings, and capital projects management support for other VTA divisions. MAJOR PROGRAMS The Construction Division is currently organized into two project delivery groups; the Rail and Facilities group and the Highway group. The Rail and Facilities group manages the implementation of a $1.25 billion rail expansion program with $1 billion funded as part of the 1996 Measure B Transportation Improvement Program. The group also designs and constructs VTA facility modification and expansion projects, including transit centers, Caltrain stations, bus stops, and operating, maintenance and administrative facilities. The Highway group is responsible for managing project delivery of $612 million in highway improvement projects funded as part of the 1996 Measure B Transportation Improvement Program. The following projects are underway by VTA’s Construction Division: 1996 Measure B Rail Projects: The Tasman East Light Rail Project consists of a five-mile extension of VTA’s existing light rail system from North First Street in the city of San Jose, through the city of Milpitas, to Hostetter Avenue in northeast San Jose. The entire project to Hostetter will be completed by July 2004. The Capitol Light Rail Project consists of 3.3 mile extension from Hostetter Avenue in San Jose, along Capitol Avenue, to just east of Alum Rock Avenue. Current plans are to open Capitol and Tasman East at the same time in July 2004. The Vasona Light Rail Project consists of building a 5.2 mile Vasona Light Rail Line from downtown San Jose to the San Jose Arena/Caltrain Station and on to Winchester Blvd. in Campbell. Current plans are to open the Vasona Project in early 2005. Low-floor Light Rail Vehicles will be introduced along the Tasman Project beginning in January 2002. A total of 100 vehicles will be added to meet the increase service levels and replace the existing non-low-floor vehicle fleet, of which 30 new vehicles are funded by the 1996 Measure B Program. Low-floor vehicles provide level boarding for all passengers.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ The Caltrain Service Improvement Program involves a number of service improvements for Caltrain in Santa Clara County. A $125 million program of projects is funded by 1996 Measure B Transportation Improvement Program, TCRP and RABA grants. Construction will begin in mid 2002 on double tracking various single-track areas between San Jose and Gilroy. Other projects include the improvement to Caltrain Stations and Park and Ride lots. 1996 Measure B Highway Projects: Most of these highway projects are under construction and will open from late 2003 through 2005. • • • • • • • • • • • Route I-880 – Widening from 4 to 6 lanes in San Jose Route 85/87 – Interchange Completion in south San Jose Route 101 – Widening from 4 to 6 lanes plus 2 HOV lanes -Morgan Hill/south San Jose Route 85/101 (S) Interchange in south San Jose Routes 237/880 Interchange Completion-Stage ‘C’ in Milpitas Route 87 HOV lanes from Branham Lane to I-280 Route 87 HOV lanes from Julian Street to I- 280 Routes 85/101 (N) Interchange and HOV Direct Connector in Mountain View Route 17 improvements Route 152 safety projects Route 85 noise mitigation

2000 Measure A Transit Improvement Projects: The Silicon Valley Rapid Transit Project is a 10 to 12 year design and construction effort estimated at $3.7 billion in 2001 dollars. The project is currently in the conceptual engineering, FEIS/FEIR phase. The Construction Division is assisting the Development and Congestion Management Division in reviewing design alternatives, project schedules, and cash flows. Also, the division will develop consultant requests for proposals and a project implementation plan to allow for a seamless transition to final design and construction in mid to late 2003. The Downtown East Valley Light Rail Project will be moving from the planning and environmental phase to final design in the next 18 month period. Other Rail and Facilities Projects: • • • • • Retrofit project to raise the 39 existing Guadalupe Corridor Light Rail station platforms Reconstruction of North Operating Division Reconstruction and expansion of Cerone Operating Division, Overhaul and Repair Facility and Distribution Center Expansion of the Light Rail Vehicle Operations and Maintenance Facility Master Plan Study for Chaboya Operating Division, Palo Alto, Gilroy and West Valley College Transit Centers

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ • • • • • • • Bus Stop Improvement Program VTA Signage Improvement Program Hazardous Materials Remediation and Monitoring Space Planning and Office Reconfigurations Various Bus Operation and Maintenance Facility Modification Projects LRT Bridge Seismic Retrofit Projects LRT Station Improvement Program

Jack Collins Chief Construction Officer

Administration 2 Positions

Rail & Facilities Design & Construction Les Miller Deputy Director

Highway Construction Jeff Funk Deputy Director 3 Positions

Systems Manager Ramesh Dhingra 7 Positions

Capital Projects Group Manager Derek Carrier 7 Positions

Survey Manager Stan Heffner 7 Positions

Vasona Project Design & Construction Manager Mark Robinson 18 Positions Facilities Design & Construction Manager Ken Brencic 48 Positions

Permits, USA Locating Business Relations Manager Bill Kindricks Utilities Coordination Manager John Beebe 10 Positions Tasman East/ Capitol Project Design & Construction Manager Arch Walters 28 Positions

Haz Mat Environmental Engineer Wes Toy 2 Positions

BART Group Manager Line Segment Vacant

Positions: 135 Full-Time

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VTA FY 2002-03 BUDGET

______________________________________________________________________________
CONSTRUCTION DIVISION % of FY 2000-01 FY 2001-02 FY 2002-03 Adopted Revised Change Actual Budget Budget Budget from FY 02 $ 6,444 $ 9,564 $ 9,825 $ 9,967 1.4% 2,187 3,622 3,719 3,837 3.2% 51 217 202 98 -51.5% 336 305 198 240 21.2% 1 9 4 6 50.0% 12 NA 36 74 69 59 -14.5% 87 114 88 82 -6.8% 27 31 31 33 6.5% 7 12 11 8 -27.3% 9,188 13,948 14,147 14,330 1.3% (9,393) (11,065) (10,850) (11,898) 9.7% $ (205) $ 2,883 $ 3,297 $ 2,432 -26.2% 106 137 145 135 -6.9%

In thousands Wages & Salaries Benefits Materials & Supplies Professional & Special Services Other Services Data Processing Office Expense Employee Related Expense Leases & Rents Miscellaneous Total Expense Reimbursements Net Total Positions

MAJOR BUDGETARY CHANGES The Construction Division is proposing a budget with net expenditure reductions of $865,000. The major component of these reductions is the deletion of ten positions, including two Associate Transportation Engineers, one Assistant Civil Engineer, one Senior Facilities Engineer, one Office Specialist II, two Engineering Aides, and three Senior Construction Inspectors. All of these reductions occur in the Rail and Facilities Group, which has seen a large reduction in the VTA Capital Program that it supports. These include scope reductions to the 1996 Measure B Rail Program, the Cerone Complex Expansion and Rehabilitation Project, the Bus Stop Improvement Program, the Facilities Modification & Space Planning Program, and the Pavement Management Program.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ DEVELOPMENT & CONGESTION MANAGEMENT DIVISION RESPONSIBILITIES The Development & Congestion Management Division (D&CM) is responsible for the planning, marketing, development, programming and congestion management functions for VTA. This division consists of four major functional units: Congestion Management Program (CMP); Transit Planning & Development; Marketing & Customer Service; and Highway Development & Administration. The CMP, which is fiscally separate from VTA Transit, is funded through assessments to local jurisdictions (Member Agencies), federal and state planning grants, and payment for services provided. In addition, Highway Development & Administration and Transit Planning & Development are funded from the budget of each specific capital project. MAJOR PROGRAMS 1. CONGESTION MANAGEMENT PROGRAM: Congestion Management Program (CMP) and Capital Improvement Program (CIP): The Congestion Management Program is responsible for preparing and implementing the county’s statutorily mandated Congestion Management Program. Adoption of a CMP is necessary to qualify for certain transportation funds made available through the state gas tax increase authorized in 1990. The CMP sets performance standards for roadways, public transit, and other modes of transportation, and shows how local jurisdictions will meet those standards through a ten-year Capital Improvement Program, land use strategies, and other actions designed to reduce congestion and improve air quality. Under development is a policy to link local land use decision-making to transportation funding through the CMP Capital Improvement Program. The CMP is updated every two years, and annually the elements of the CMP are monitored and CMP staff prepares a monitoring and conformance report. Valley Transportation Plan 2020 (VTP 2020): This is the long-range transportation plan for the county, which drives overall planning and programming efforts of the Valley Transportation Authority. The policies and procedures for the various programs are now under development as part of the VTP 2020 Implementation Plan and will, when adopted, be incorporated into the update of VTP 2020. Strategies contained in the Countywide Deficiency Plan for achieving system-wide congestion mitigation will also be incorporated into VTP 2020. Grant Programming: The Congestion Management Program is responsible for fund programming and/or oversight of the following Federal, State, regional and local grant programs: • Federal Surface Transportation Program/Congestion Mitigation - Air Quality Improvement Program (STP/CMAQ): STP funds are used to address problems caused by urban and suburban congestion by funding improvement projects across
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VTA FY 2002-03 BUDGET

______________________________________________________________________________ all transportation modes. CMAQ funds are to be used to implement the transportation provisions of the 1990 Federal Clean Air Act. The STP and CMAQ funding programs were wrapped into the Federal Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA) and continued when Congress enacted the Transportation Equity Act for the 21st Century (TEA-21) in mid -1997. Under both ISTEA and the current TEA-21 legislation, VTA determines the countywide priorities for these funds, subject to final approval of the Metropolitan Transportation Commission (MTC). • Transportation Enhancement (TE): TEA-21 provides for a 10% set-aside of each state’s STP allocation to be used for “Transportation Enhancement” (TE) above and beyond normal capital improvements that fit within the 12 categories described in the TEA-21 legislation. Within the MTC region, the responsibility for TE program development has been divided between MTC and the congestion management agencies (CMAs). MTC programs 50% of the available TE funding and the CMAs develop programs for the remaining 50% subject to MTC approval. VTA, acting in its capacity as the CMA for Santa Clara County, programs the local share. Regional Improvement Program (RIP): Senate Bill 45 (SB-45), which was signed into law at the end of the 1997 legislative session, consolidated several state transportation funding programs and directed 75% of the funds from the State Highway Account (SHA) into the Regional Improvement Program (RIP). Each county receives a “County Share”. VTA determines the countywide priorities for these funds subject to final approval by MTC and the California Transportation Commission (CTC), via the State Transportation Improvement Program (STIP) process. Transportation Fund for Clean Air Program Manager Fund (TFCA 40%): In 1991, state statute authorized the Bay Area Air Quality Management District (BAAQMD) to increase vehicle registration fees by up to $4.00 per vehicle to implement certain transportation control measures contained in the District’s adopted Clean Air Plan. Forty percent (40%) of these funds are distributed 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. VTA’s Congestion Management Program is the program manager for the TFCA 40% Funds for Santa Clara County. Transportation Development Act Article 3: The California State Legislature enacted the Transportation Development Act (TDA) in 1972. Article 3 of this act provides for the return of a portion of the sales tax receipts in each county to fund bicycle and pedestrian improvements. MTC administers the program Bay Area-wide, while VTA develops annual countywide program priorities.

Programmed Project Monitoring and Assistance: The State Transportation Improvement Program (STIP) contains a timely use of funds provision that requires project sponsors to deliver the project on time or risk loss of the grant funding. This
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VTA FY 2002-03 BUDGET

______________________________________________________________________________ legislation also increased the responsibility of local agencies, such as VTA, to not only program transportation funds, but to also monitor project progress and potentially provide assistance to ensure timely completion. Because of the substantial fiscal impact on the countywide Capital Improvement Program due to delayed project construction, CMP staff is providing active oversight of the delivery of CIP projects. This oversight includes a significant level of direct involvement by program staff, utilizing consultant engineering assistance in several large, high profile state highway projects managed by Caltrans, including the Route 880/Dixon Landing Road interchange, the Route 237/880 interchange, and Route 87 near Norman Y. Mineta San Jose International Airport. This oversight also includes providing direct assistance to Member Agencies on transportation-related projects. CMP staff also provides to the Board of Directors and Advisory Committees the Programmed Projects Quarterly Monitoring Report, which tracks the progress of projects funded through programming actions by the Board of Directors. It also identifies projects at risk of losing funds due to delivery difficulties. Bicycle and Pedestrian Planning Program: The 20-year Countywide Bicycle Plan was adopted by the Board of Directors in October 2000. It includes three prioritized tiers of capital bicycle projects. The ten-year Bicycle Expenditure Program included in the Countywide Bicycle Plan is the funding mechanism for the Tier 1 projects. Over $31 million has been approved for the Bicycle Expenditure Program. This program administers and distributes funds to Member Agencies to implement and construct the projects. In 2001, the VTA Board of Directors requested that the VTA Advisory Committee structure be modified to focus more directly on pedestrian issues. In response, staff recommended that the existing Bicycle Advisory Committee be reestablished as the Bicycle and Pedestrian Advisory Committee (BPAC), and that its duties be augmented to include attention to pedestrian-related issues. The Board also requested that staff develop a VTA Pedestrian Program that delineates the agency’s pedestrian-related activities. The Pedestrian Program is currently under development. Pavement Management Program: The 1996 Measure B Transportation Improvement Program (MBTIP) and other sources provide funds to local jurisdictions for street repair and other transportation projects. Administration and distribution of these funds is managed by the Pavement Management 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 jurisdictions. Over the life of the 1996 Measure B, local jurisdictions will receive a combined total of approximately $90 million countywide. Additionally, $37 million in Federal funds previously secured for similar functions will also be administered and distributed through the Pavement Management Program. 2. TRANSIT PLANNING & DEVELOPMENT: Transit Planning & Programming is responsible for the planning and conceptual design of all major transit projects including new rapid transit corridors, federal, state and regional transit grants, and VTA’s transit oriented development (TOD) program. Current tasks include:
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VTA FY 2002-03 BUDGET

______________________________________________________________________________ • • • • • Conceptual Design for Silicon Valley Rapid Transit Corridor (BART) Downtown to East Valley LRT Conceptual Design Caltrain and Altamont Commuter Rail Capital Improvement Planning Line 22 Rapid Bus Project 1996 Measure B Transportation Improvement Program (MBTIP) Caltrain Plan Revisions

Environmental Analysis prepares all of VTA’s environmental documents including those required for 1996 MBTIP transit and highway projects. In addition, it coordinates VTA’s Development Review Program. Current tasks include: • • Environmental Impact Statement/Environmental Impact Report (EIS/EIR) for Silicon Valley Rapid Transit Corridor (BART) and Downtown to East Valley LRT Environmental Documents for the 1996 MBTIP and highway projects developed for Member Agencies

Real Estate appraises and acquires property for all VTA capital projects and manages VTA’s existing real estate assets. Current tasks include: • • • Right-of-Way Acquisitions for Silicon Valley Rapid Transit Corridor (BART) Real Estate Acquisitions for 1996 MBTIP projects and highway projects developed for Member Agencies Sale of Excess Property

3. MARKETING & CUSTOMER SERVICE: Customer Service is responsible for providing information regarding transportation services and programs to customers, and assisting customers with concerns, suggestions, and compliments. This unit serves the public through a telephone contact center, the Downtown Customer Service Center, at community events, site visits, and over the web. Utilizing the on-line CARE (Customers are Resources to Excellence) system, the unit facilitates the resolution of customer concerns by working with the operating divisions on customer issues. In addition, the unit is the primary distribution point for printed transit information materials throughout Santa Clara County. Customer Service coordinates the Youth Outreach Program (YOP) and “Class Pass” program, and is a liaison with Operations in the Youth Partnership Program (YPP) with area schools. Staff promotes and makes presentations to local schools, including information about transit services and safety lessons. Customer Service also acts as VTA’s website content lead. Market Development is responsible for ongoing efforts to increase ridership and revenue, including expansion of the Eco Pass and Convention Day Pass programs. Eco Pass enhances access to VTA by enabling employers and residential communities to purchase an annual pass for each employee or resident. Other efforts include updating

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ and maintaining route schedules and system maps, and creating VTA “car cards” (informational placards) for buses and light rail vehicles. Market Development also oversees the bus and light rail revenue-generating advertising contract; employer outreach; ongoing advertising; support materials for new services; and pass sales through consignment outlets. Market Development is also responsible for promotional partnerships with local organizations for community events and programs that benefit VTA customers and promote VTA services. It also coordinates with VTA staff from all divisions in a variety of internal and external marketing and advertising plans. Public Communications is responsible for internal and external communications, particularly news media contacts. It initiates and responds to news contacts; maintains updated information about VTA and its projects; and publishes a biweekly communication from the General Manager (Monday Exchange) and a quarterly employee newsletter (TransAction). In addition, Public Information produces the multilingual monthly publication VTA Take One, placed on board VTA buses and light rail vehicles to inform customers about VTA services and programs. Community Outreach is responsible for supporting VTA’s corridor studies and capital projects with a variety of outreach and liaison efforts specifically designed to not only inform the community but also to obtain input, especially to mitigate the impacts of construction. Community Outreach also coordinates a variety of outreach events, facilitates VTA employee events such as the Employee Recognition Dinner, and serves as the lead in the 1996 MBTIP Community Oriented Design Enhancements (CODE) and VTP 2020 Design Enhancements (DE) programs. 4. HIGHWAY DEVELOPMENT & ADMINISTRATION: Highway Development and Administration (HD&A) is responsible for developing the highway improvement projects and studies listed below, and for their administrative functions. Project development activities include planning, conceptual and preliminary engineering, and final design. VTA Construction staff, in partnership with Caltrans, manages the construction phase. HD&A duties are accomplished using a combination of full-time VTA staff and consultants that provide direct project implementation support. The major phases to implement each highway project are: • • • • • • • • Conceptual Alternative Analysis. Preliminary Engineering (Project Study Report). Project Approval (Project Report/Environmental Clearance). Environmental documentation and approval. Final Design (Preparation of Plans, Specifications and Estimates). Right-of-way certification and utility relocation coordination. Advertise, bid and award construction contracts. Construction of the project.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ The eleven current Highway Program projects funded by the 1996 MBTIP are: • • • • • I-880 widening from 4 to 6 lanes from Montague Expressway to 101 and an auxiliary lane on southbound I-880 from 101 to the North First Street exit ramp. Route 85/87 direct connector ramps for southbound 85 to northbound 87 and southbound 87 to northbound 85 movements. Route 101 widening from a 4 lane to a 6 lane plus two HOV (carpool) lanes within the existing median of the freeway between Bernal Road and Cochrane Avenue. Routes 85/101 interchange in Mountain View. Routes 237/880 interchange to Milpitas (Stage C) HOV lane direct connector ramps from southbound 880 to westbound 237 and eastbound 237 to northbound 880; southbound 880 braided exit ramp to Tasman Drive and eastbound 237 braided ramp to southbound 880. Route 87 HOV lane from I-280 to Route 85. Route 87 HOV lane from Julian Street to Route 280. Routes 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 projects. Route 85 noise mitigation.

• • • • • •

The other current Highway Program projects that are contained in VTP 2020 but are funded by sources other than the 1996 MBTIP are: • • • • • • • I-880/Coleman Avenue Interchange Improvement. Route 152/156 Interchange Improvement. I-680/880 Cross Connector Corridor Study. Route 101 North Corridor Study. Route 101 Central Corridor Study. Route 237/101 Corridor Study. Route 280/85 Corridor Study.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________

Michael P. Evanhoe Chief Development Officer

Administration 1 Positions

Planning & Development Department James E. Pierson Director 59 Positions

Marketing & Customer Service Department Anne-Catherine Vinickas Director 73 Positions

Congestion Management Program Carolyn Gonot Deputy Director

Transit Planning & Development Jim Lightbody Deputy Director

Highway Development & Administration John Ristow Deputy Director

MAJOR BUDGETARY CHANGES The FY 2002-03 proposed budget for Development & Congestion Management includes major reductions in the areas of Marketing & Customer Services and Planning & Development. These net reductions to both staffing and non-labor accounts, totaling $2,150,000, will necessarily result in program curtailments, deferrals, and eliminations.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________
DEVELOPMENT AND CONGESTION MANAGEMENT DIVISION CONGESTION MANAGEMENT PROGRAM AND HIGHWAY DEVELOPMENT & ADMINISTRATION % of FY 2000-01 FY 2001-02 FY 2002-03 Adopted Revised Change In thousands Actual Budget Budget Budget from FY 02 REVENUES Federal Operating Grants $ 452 $ 500 $ 952 $ 500 -47.5% State Operating Grants 171 224 224 411 83.5% Other Income 1,277 3,505 3,279 3,507 7.0% Total Revenues $ 1,900 $ 4,229 $ 4,455 $ 4,418 -0.8% EXPENSES Wages & Salaries Benefits Materials & Supplies Professional & Special Services Other Services Data Processing Office Expense Communications Employee Related Expense Leases & Rents Miscellaneous Other Reimbursements Total Expense Surplus/(Deficit) to Reserves Beginning Reserves Ending Reserves Positions

$

1,113 437 2 917 256 65 13 1 47 75 94 3,020

$

2,281 $ 774 3 687 1,516 36 21 12 41 103 129 (1,512) 4,091 138 210 348 28 $

1,801 $ 450 2 509 972 76 20 6 52 102 266 (910) 3,346 1,109 210 1,319 26 $

2,161 843 3 442 2,378 77 22 13 65 104 124 15 (1,094) 5,153 (735) 1,319 584 27

20.0% 87.3% 50.0% -13.2% 144.7% 1.3% 10.0% 116.7% 25.0% 2.0% -53.4% NA 20.2% 54.0% -166.3% 528.1% -55.7% 3.8%

$

(1,120) $ 1,330 210 20

MAJOR BUDGETARY CHANGES The Congestion Management Program (CMP), which is fiscally separate from VTA Transit, is funded through assessments to local jurisdictions (Member Agencies), federal and state planning grants, and payment for services provided. Highway Development & Administration is funded from the budget of each specific capital project. Due to the sharing of staff and certain services, the budgets for these programs are shown combined. For FY 2002-03, there are no significant changes for Highway Development & Administration and CMP proposes only minor modifications, the most significant of these being:

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ • Initiation of five highway corridor studies: U.S. 101 – Great America Parkway to Old Oakland Road; U.S. 101 – I-280/I-680 to Capital/Yerba Buena; SR 85/I-280 Area Improvements; SR 237 – I-880 to SR 85; and a joint study with the San Mateo Congestion Management Agency (CMA) to study the U.S. 101 corridor from Redwood City to Mountain View and the western approaches to the Dumbarton Bridge. Development of the Intelligent Transportation Systems (ITS) Plan and its expenditure plan. Development of the Pedestrian Program to define VTA’s pedestrian-related activities. This includes development of the Pedestrian Technical Guidelines. Review and enhancement of VTA’s current Development Review process.

• • •

Combined, these result in an increase for Other Services of approximately $1,406,000 over the Revised FY 2001-02 budget. The major portion of this increase is the corridor studies (approximately $650,000), which are fully funded from the Gateway/Corridor Studies Reserve.

Santa Clara Valley Transportation Authority Congestion Management Program Recommended FY 2002-03 Member Assessments Member Agency County of Santa Clara Campbell Cupertino Gilroy Los Altos Los Altos Hills Los Gatos Milpitas Monte Sereno Morgan Hill Mountain View Palo Alto San Jose Santa Clara Saratoga Sunnyvale Subtotal VTA - Managing Agency Contribution TOTAL Total $229,334 42,640 65,512 31,872 21,034 5,606 29,030 64,970 1,684 21,184 105,510 119,396 661,624 174,760 18,302 209,816 1,802,274 229,334 $2,031,608

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VTA FY 2002-03 BUDGET

______________________________________________________________________________
DEVELOPMENT AND CONGESTION MANAGEMENT DIVISION PLANNING & DEVELOPMENT AND MARKETING & CUSTOMER SERVICE FY 2000-01 FY 2001-02 FY 2002-03 % of Adopted Revised Change In thousands Actual Budget Budget Budget from FY 02 Wages & Salaries $ 5,026 $ 7,192 $ 7,294 $ 6,688 -8.3% Benefits 2,153 3,148 3,159 3,039 -3.8% Materials & Supplies 16 29 29 30 3.4% Professional & Special Services 824 1,710 1,643 933 -43.2% Other Services 1,800 1,782 1,757 1,743 -0.8% Utilities 1 1 NA Data Processing 12 8 8 9 12.5% Office Expense 85 91 88 82 -6.8% Employee Related Expense 71 102 222 145 -34.7% Leases & Rents 132 91 91 94 3.3% Miscellaneous 127 373 349 74 -78.8% Contribution to Other Agencies 140 156 156 162 3.8% Total Expense 10,387 14,682 14,796 13,000 -12.1% Reimbursements (1,859) (2,505) (2,251) (2,605) 15.7% Net Total $ 8,528 $ 12,177 $ 12,545 $ 10,395 -17.1% Positions 117 131 134 107 -20.1%

MAJOR BUDGETARY CHANGES Transit Planning & Development: The Grants Management unit is eliminating one Senior Transportation Planner – Programming & Grants and one Transportation Planner I/II/III at a savings of $213,000. These cutbacks will result in a reduced level of liaison and coordination in the management and administration of capital grants to ensure full grant utilization. There will also be a diminishment of general grant support. The Planning unit is reducing four positions, including one Senior Transportation Planner, two Transportation Planner I/II/III’s, and one Board Clerk. These reductions will realize $367,000 in savings, but will result in a reduced level of program support. Some programs, including General Transit Planning, Transit Oriented Development (TOD) Program, and Caltrain Corridor Planning, will see curtailed activity. In some cases, this will mean focusing on the most critical issues and taking a less-proactive role in others. This will also mean that attention to unforeseen requests from the community and the Board will see increased response times or come at the expense of attention to other important programs. This budget also proposes a one-year deferral of VTP 2020’s Seven Transit Corridors Planning and Major Investment Studies. The Real Estate unit is proposing the reduction of two Associate Real Estate Agents as a result of the winding down of real estate activities in support of the 1996 MBTIP. Although there will be no discernable short-term program impact from this reduction, there will be a need to readdress these deleted positions once acquisition and relocation

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ activities gear up in support of the BART and Downtown/East Valley projects. This action will offer a savings of $205,000. The Planning and Development Administration unit is deleting one Administrative Support Officer at a savings of $79,000. Existing staff will have to pick up some of the activities of this position, but there will likely be a negative impact upon some of those activities, which include both fiscal and personnel monitoring, and Standing Committee and Board support. Marketing and Customer Service: Community Outreach is proposing a budget with reductions to a level commensurate with that being funded by the 1996 MBTIP, along with 2000 Measure A activities. To that end, this budget proposes the reduction of one Public Communications Specialist II’s, three Office Specialist II’s, two Community Outreach Program Managers, one Management Analyst, and one Secretary. These reductions, combined with other reductions in outside services and employee recognition, total $972,000. The Measure B Transportation Improvement Program (MBTIP) County staff desires to pay for a total of six community outreach positions in a manner that will not provide limited managerial, administrative, or creative services (graphics) support. Like VTA, the MBTIP is experiencing a similar revenue shortfall and desires to reduce levels of service. Unfortunately, VTA can no longer continue to absorb excess project delivery costs to the extent that it has in the past. Customer Service is proposing a budget with significant reductions that reflect both the proposed service reductions and the need to make reductions as a result of the current economic situation. To that end, this budget proposes reducing one Senior Information Services Representative and five Information Services Representatives, at an estimated savings of $325,000. These reductions will likely result in increased response times to customer inquiries. The Market Development unit is proposing eliminating one Advertising Coordinator in the Sales Program unit, one Graphic Designer in Creative Services, and one Office Specialist in Market Development Administration. These reductions, in conjunction with cutbacks to media advertising and outside professional services, total $711,000. The Public Communications unit is eliminating one Public Communications Specialist II, along with reductions to professional services, for a savings of $155,000. The necessity to implement cost saving measures is clear. These necessary cost savings measures will impact VTA customers in numerous ways. In general terms, Marketing & Customer Service internal and external outreach will be reduced, the wait time for a response will be longer, and, there will be no resources to expend on special activities or projects.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ Given the resources allotted for 1996 Measure B Program, for example, community outreach will be limited to staff liaison with project managers or resident engineers, response to public inquiries, and news media communications. There will no longer be any milestone events (such as groundbreakings and openings). There will be limited mailings (newsletters and construction updates), special notices regarding after-hours work, or community meetings. On line information will be “static” with general project information that does not require any updating. Presentations to community and homeowners groups, as well as multi-lingual information and staff availability will be minimal. As the number of contacts to the VTA Customer Service Center increases, the call answer rate (currently around 98%) could likely decrease while customer waiting times lengthen. Fewer Youth Outreach Program presentations will be made. Participation in youth career related events, such as Job Shadow Day, Girls’ Day and Boys’ Day, will be eliminated. Resources will also severely limit the number of copromotional partnerships in which VTA will be able to participate.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ FISCAL RESOURCES DIVISION RESPONSIBILITIES The Fiscal Resources Division fulfills the Controller and Treasury functions for VTA, including financial reporting, accounting, budgeting, internal audit, investment, cash management, payroll, accounts receivable, accounts payable, and farebox revenue services. In addition, purchasing, messenger/mail services, contracts administration, and disadvantaged business enterprise program are the responsibility of the Fiscal Resources Division. MAJOR PROGRAMS Contracts and Materials Management is responsible for commodity and nonprofessional service procurements; all construction and professional services contracting; the administration of the Pre-qualification Pilot Program; all aspects of Disadvantaged Business Enterprise (DBE) program compliance; messenger and mail service, central receiving, and surplus property disposal. Budget and Analysis assists the Chief Financial Officer and the divisions with the development of annual budget requests and prepares VTA’s annual budget for the Board of Directors’ consideration; monitors and modifies the budget throughout the fiscal year; and performs financial and operational analyses, and updates forecasts on a regular basis. Internal Audit is an independent appraisal activity established within VTA to examine and evaluate its activities as a service to management. The objective of internal audit is to assist members of the organization in the effective discharge of their responsib ility by furnishing them with analyses, appraisals, counsel, and information concerning the activities reviewed. This objective includes effective control at a reasonable cost. Investment Services is responsible for establishing effective investment strategy, reviewing and recommending changes to VTA’s investment policies, analyzing investment portfolio performance, reporting investment performance to the Board of Directors, designing and managing cash management and cash forecasting systems, and monitoring and coordinating the timely receipt of federal and state grant funds. The dayto-day investment functions include managing and monitoring cash flows as well as banking related activities. Debt Administration & Business Analysis is responsible for identifying the need for, and implementing debt related transactions as well as dealing with programmatic issues that may have fiscal implications to the organization. This department also oversees the investment of VTA’s debt service reserve funds from the trustee and is responsible for monitoring the transfer of sales tax monies from the State Board of Equalization to the bond trustees and to VTA’s bank account. Additionally, this unit provides analytical support services in the areas of collective bargain ing, debt administration, financial capacity analysis and sales tax audits.
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VTA FY 2002-03 BUDGET

______________________________________________________________________________ Disbursements manages Payroll for VTA employees and ATU retirees, and payments to vendors through Accounts Payable. This unit reports payroll and remits withheld taxes for VTA employees. Disbursements is also responsible for preparing financial reports for the VTA/ATU Pension and related trust funds. Financial Accounting is responsible for maintaining the financial accounting system and records for all of VTA’s business and administrative financial activities. The Financial Accounting Department is also responsible for external and internal financial reporting, revenue billings for projects, program contracts, and other program services. The cash deposit function is performed here. Revenue Services is responsible for managing the activities of fare media sales, Bus and Light Rail fare, counting, depositing, and reconciling and any other fare related activities.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________

Scott Buhrer Chief Financial Officer

Administration 2 Positions

Jerry Rosenquist Controller

Business Analysis & Debt Administration Kimberly Koenig Manager 4 Positions Investment Services Manny Bagnas Manager 3 Positions Internal Audit Grace Salandanan Manager 6 Positions Contracts & Materials Management Tom Smith Manager 58 Positions

Disbursements Ali Hudda Manager 27 Positions Financial Services Linda Willis Manager 15 Positions Revenue Services David Sausjord, Manager 12 Positions Budget & Analysis Victor Chan Manager 6 Positions

Positions: 135 Full-Time

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VTA FY 2002-03 BUDGET

______________________________________________________________________________
FISCAL RESOURCES DIVISION FY 2000-01 FY 2001-02 FY 2002-03 % of Adopted Revised Change In thousands Actual Budget Budget Budget from FY 02 Wages & Salaries $ 6,731 $ 7,962 $ 7,820 $ 8,789 12.4% Benefits 2,623 3,043 2,927 3,425 17.0% Materials & Supplies (941) 39 14 14 0.0% Professional & Special Services 798 2,668 1,851 1,341 -27.6% Other Services 488 533 688 304 -55.8% Data Processing 47 25 7 5 -28.6% Office Expense 176 168 126 158 25.4% Communications 4 4 4 4 0.0% Employee Related Expense 91 192 179 143 -20.1% Leases & Rents 31 48 38 45 18.4% Miscellaneous 356 341 356 640 79.8% Other Expense 27 26 11 -57.7% Total Expense 10,404 15,050 14,036 14,879 6.0% Reimbursements (1,381) (21) (1,511) 7095.2% Net Total $ 10,404 $ 13,669 $ 14,015 $ 13,368 -4.6% Positions 121 139 150 135 -10.0%

MAJOR BUDGETARY CHANGES Wages & Benefits Fiscal Resources proposes to delete 15 positions from the current 150 authorized positions in the Division. Total savings in salaries and benefits from these deleted positions is estimated at $1.2 million or a reduction of 8.7%. To achieve such a reduction, it is necessary to change some current business practices. The Disbursement Department recommends increasing the tolerance level in matching purchase orders and invoices. The Purchasing Department proposes the issuance of more procurement cards to VTA departments and requires the use of these cards for purchases with value less than $2,500. By implementing these changes, one Account Clerk II position in Disbursement and one Buyer Assistant position in Purchasing can be deleted. Internal Audit will be asked to perform audits on these two new processes to limit our exposure. Another change is to consolidate clerical support in the departments of Investment Services, Internal Audits, and Revenues Services. One Management Secretary will support these three departments. An Office Specialist II position will be deleted from Revenue Service. In addition, Fiscal Resources Administration proposes to delete one Account Clerk position. Debt Administration and Business Analysis is proposing to eliminate three vacant positions: one Financial Analyst, one Accountant III and one Management Analyst. Revenue Services recommends deleting one more office support position (an Accountant III position). Another department proposes significant reduction is Contracts and Materials Management (CAMM). The department recommends eliminating four

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ positions: one Management Analyst in CAMM administration; and one Senior Construction Contracts Administrator, one Contracts Administrator II and one Assistant Contracts Administrator in Contracting. Financial Accounting plans to eliminate one Accountant III position. Disbursement proposes to reduce one Senior Accountant and two Accountant Assistants. However, due to the full year budgeting of the cost in FY 2002-03 for nine positions added in the middle of FY 2002-03; the promotion of 20 Account Clerk IIs to Account Assistants in FY 2002-03; and the full year budgeting of the cost of salary realignments occurred in later part of FY 2001-02 for one-third of CEMA and 715 workers realignments in this division, Salaries and Benefits is actually $1.5 million higher in FY 2002-03 than in FY 2001-02 despite the 15 position reductions. Other Reductions Furthermore, the division reduces $510,000 from Professional & Special Services (primarily by eliminating some financial consulting services in the Debt Administration and Business Analysis Department) and $192,000 from Other Services (primarily by eliminating expenditures on Media Advertising and Promotion in the Contracting Department) to achieve the 15% target. Other Addition Due to the expected increase of postage rates in June and inclusion of courier services in the budget of the Warehouse and Mail Service Department, an addition $154,000 is added.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ OTHER RESPONSIBILITIES VTA groups all the expenses that are beyond the control of an individual division, difficult to be allocated meaningfully to any division or unrelated to actual operations into a non-departmental division. The rationale is that since the divisions have no control over these expenses, they should not be held responsible or accountable for them. The typical expenses are general liability adjustments, and prior year adjustments.
NON-DEPARTMENTAL % of FY 2000-01 FY 2001-02 FY 2002-03 Adopted Revised Change Actual Budget Budget Budget from FY 02 $ (540) $ (2,996) $ $ NA 2,494 74 74 74 0.0% (24) NA 8 NA (3,300) (2,000) (2,000) (1,000) -50.0% (80) NA 93 NA (1,349) (4,922) (1,926) (926) NA 2,752 3,606 3,179 3,750 NA $ 1,403 $ (1,316) $ 1,253 $ 2,824 NA

In thousands Wages & Salaries Benefits Professional & Special Services Tires Insurance Miscellaneous Other Expense Total Expense Reimbursements Net Total

MAJOR BUDGETARY CHANGES Liability Self Insurance An actuarial review of the liability self-insurance program is prepared annually. This program has excess reserves. VTA plans to reduce the reserve by $1.0 million in FY 2002-03. As a result, the same amount of expense for liability insurance will be reduced.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ CAPITAL BUDGET The current financial situation has had a major impact on VTA capital spending. Over the past year, the Capital Improvement Program Oversight Committee (CIPOC), which is composed of senior management and supporting staff from the Operations, Construction, Development/Congestion Management and Fiscal Resources divisions, has conducted a thorough review of the entire capital program. This process examined every capital project as to their criticality to our operations, strategic plan, and goals. Consequently, 158 projects were closed, cancelled or scaled back. The following is a list of these projects by category.
Original Budget No. of VTA Non-VTA Total Projects ADA 2 $ 1,512 $ 880 $ 2,392 Bus Facility Expansion 3 32,993 12,780 45,773 Caltrain Capital Contribution 1 5,734 5,734 Info Systems 20 34,880 34,880 Non-Revenue Vehicles & Facilities 4 2,512 2,512 Operating Equipment 36 10,621 9,750 20,371 Operating Facilities 32 19,883 222 20,105 Other 21 23,532 783 24,315 Passenger Facilities 20 12,753 4,844 17,597 Rail Expansion 4 1,427 625 2,052 Revenue Vehicles & Equipment 6 14,710 20,010 34,720 Studies & Planning 9 1,380 1,380 Total 158 $ 161,937 $ 49,894 $ 211,831 Total CIPOC Savings VTA Non-VTA Total (1,300) $ (48) $ (1,348) (16,484) (16,484) (1) (1) (3,864) (3,864) (361) (361) (4,689) (2,858) (7,547) (5,644) (5,644) (19,591) (8) (19,599) (6,737) (128) (6,865) (255) (625) (880) (11,386) (9,800) (21,186) (367) (367) $ (70,679) $ (13,467) $ (84,146)

$

Some of the major projects that realized savings by this review included: 33 Replacement and 25 Expansion Buses (fleet expansion is being deferred and grant funds allocated for replacement buses are being converted to Preventative Maintenance funds); Cerone Division Expansion & Rehabilitation (fleet expansion is being deferred and the scope of rehabilitation is being downscaled until the financial situation improves); LRV Safe Harbor and US Leveraged Lease (these costs will be absorbed through the proceeds of the sale of the light rail vehicles); and Line 22 Improvements (project scope will focus on the highest priority elements, while external funding is pursued). A complete list of these projects can be seen in Appendix E. Against this backdrop, a high level of scrutiny was paid to requests for new projects and augmentations to existing projects in FY 2002-03. As a result, this budget proposes the smallest locally funded VTA Capital Program in seven years. This budget initiates twelve new projects and augments two previously approved projects, for a total new commitment of $7,517,000 (36% or $2,741,000, will be reimbursed from outside sources). There are also 90 unfinished projects (excluding the Measure B Program) being carried forward from prior capital budgets. A summary listing of these carry-forward projects, along with the proposed new and augmented projects, can be seen in Appendix F.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________
Summary of Changes in New Capital In $000's In Number New Augmented Total New Augmented $ 4,669 $ 2,848 $ 7,517 12 2 63,318 116,785 180,103 49 14 $ (58,649) $ (113,937) $ (172,586) (37) (12) -93% -98% -96% -76% -86%

Year FY 2002-2003 FY 2001-2002 Revised Increase/(Decrease) % Increase/(Decrease)

Total 14 63 (49) -78%

SANTA CLARA VALLEY TRANSPORTATION AUTHORITY CAPITAL BUDGET - FY 2002-03 (In $000's)
CAPITAL PROJECT PROGRAMMING (EXCLUDING 1996 MEASURE B TRANSPORTATION IMPROVEMENT PROGRAM) Estimated Projected Approved Recommended Recommended Total Total Net Project Projects & Project ReimburseVTA Project Program Group Budgets Modifications Budgets ments Costs New Projects Non-Revenue Vehicles $ $ 1,083 $ 1,083 $ $ 1,083 Operating Equipment 1,111 1,111 1,111 Operating Facilities 2,374 2,374 2,374 Other 100 100 100 Total New Projects $ $ 4,668 $ 4,668 $ $ 4,668 Augmented Projects Passenger Facilities Rail Facility expansion Total Augmented Carryover Projects ADA Paratransit Bus Facility Expansion Info Sys., Comm & Tech Non-Revenue Vehicles Operating Equipment Operating Facilities Passenger Facilities Rail Facility Expansion Revenue Vehicles & Equipment Other Total Carryover Total Capital Projects

$ $

1,060 7,430 8,490

$ $

537 2,311 2,848

$ $

1,597 9,741 11,338

$ $

(1,211) $ (9,741) (10,952) $

386 386

$

$ $

4,630 81,994 30,701 4,012 5,177 9,060 56,634 416,038 324,667 3,501 936,414 944,904

$

$ $

7,516

$

$ $

4,630 81,994 30,701 4,012 5,177 9,060 56,634 416,038 324,667 3,501 936,414 952,420

$

$ $

(2,927) $ (29,422) (12,202) (209) (2,000) (8,785) (378,198) (285,455) (719,198) $ (730,150) $

1,703 52,572 18,499 3,803 3,177 9,060 47,849 37,840 39,212 3,501 217,216 222,270

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ NEW CAPITAL PROJECTS Non-Revenue Vehicles (NRV) NRV procurement is a planned, on-going activity. There are 30 vehicles scheduled for replacement due to their age or mileage. In addition, four support vehicles are being requested to address unmet needs. These additional vehicles are one Passenger Facilities Maintenance Truck, two specialty maintenance vehicles for Light Rail Way, Power and Signal, and one Tilt Trailer. Vehicles used in support of the Capital Program will result in project reimbursement for their usage. Vehicle assignment at VTA utilizes a cascade approach with older, used vehicles assigned to adverse operating conditions such as construction site inspection. (More information is provided in Appendix G.) Project Budget: $1,083,300 Grant Funding: $0 Local Funds required: $1,083,300 Operating Equipment River Oaks HVAC Scheduled Unit Replacement The River Oaks facility needs to replace seven air conditioning package units. These units are original equipment that have been in place for over 20 years and are no longer cost-effective to repair, as the average life cycle of these units is 10 to 15 years. This request would replace three of these units in FY 2002-03. The remaining four units will be recommended for replacement as part of the FY 2003-04 Capital Budget. Project Budget: $246,000 Grant Funding: $0 Local Funds required: $246,000 Light Rail T-Signal Retrofit This project will retrofit light rail T-Signals with the new Manual of Uniform Traffic Control Devices (MUTCD) Standard T-Signal indications for the Guadalupe, Tasman West & Tasman East (Zanker-I880) Light Rail Corridors. The MUTCD is a nationally recognized standard and is being implemented as part of the Tasman East (I880Hostetter), Vasona, and Capitol Light Rail Corridors. This project will create a signal standard for the entire system. The project is being budgeted in two phases, with design being included for FY 2002-03, while construction will be requested in FY 2003-04. The total estimated cost for the project is $1,900,000. Project Budget: $250,000 Grant Funding: $0 Local Funds required: $250,000 Facilities and Equipment Emergency Repair Allowance This ongoing account allows VTA to expedite unplanned repairs that may be required at facilities or to equipment that is essential to normal or safe operations. These funds are
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VTA FY 2002-03 BUDGET

______________________________________________________________________________ administered by the Deputy Director of Operations for Maintenance, and are not used for regular anticipated maintenance activities. Project Budget: $300,000 Grant Funding: $0 Local Funds required: $300,000 Maintenance Equipment Replacement Program This capital item allows for the scheduled replacement of equipment that has reached the end of its useful life. It allows VTA to proactively keep its equipment in a state of good repair, while reducing repair expenses and downtime. Equipment scheduled for replacement includes six forklifts, one tow tractor, four air compressors, one mill, and one rebuilt brake lathe. Project Budget: $315,000 Grant Funding: $0 Local Funds required: $315,000 Operating Facilities Chaboya Maintenance Bay Pit Modifications There are seven maintenance bay pits at the Chaboya Division that are not deep enough to accommodate mechanics working underneath the new VTA standard low-floor buses. This project will replace all existing pits with above ground lifting systems. The work includes: Demolishing and filling in pits to match the existing flat shop floor surface; Installing overhead electrical wiring system to accommodate new lift systems; and, Purchasing seven new lift systems that accommodate articulated buses. Project Budget: $551,000 Grant Funding: $0 Local Funds required: $551,000 Chaboya Restrooms Rehabilitation Chaboya Division has a total of ten restroom facilities that have not been rehabilitated since 1981. While the Chaboya Expansion Project is currently on hold, the sinks, faucets, countertops and floors are in poor condition and need to be replaced. This project includes demolition of the existing facilities, the installation of new fixtures, wainscoting, water closets, sinks, showers, and floor coatings. With these improvements, the useful life of each restroom should be increased approximately 20 years. Project Budget: $448,000 Grant Funding: $0
Local Funds required: $448,000

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ Rail Maintenance Engineering Office & ISG Disaster Recovery Room Guadalupe Division OCC staff will move to the new OCC facility in August 2002 when the new ACS system is scheduled to be in full operation. The area currently occupied by OCC on the second floor of Building A, will be converted to Rail Maintenance Engineering staff office space. Additionally, the ISG Disaster Recovery Section requires a back up facility in the event of a disaster at the River Oaks facility. Construction of a disaster recovery room at the Guadalupe Division will enable ISG staff to continue operation of the entire VTA computer network if there is a major disaster at the River Oaks facility. Project Budget: $239,000 Grant Funding: $0 Local Funds required: $239,000 Pavement Management Program This is an ongoing program to keep VTA-owned parking lots and driveways in a state of good repair. Typically, activities in this program include scheduled slurry sealing and restriping as well as performing minor repairs and repaving, if needed. Facilities scheduled for this year include a vehicle & pedestrian track crossing at the Guadalupe Division, repairs at the Chaboya Operating Division, and repairs to the Cerone Access Road. This request also includes an annual allowance for minor repairs, inspections, spot sealing, and other preventative maintenance. Due to budget constraints, major pavement rehabilitation at Chaboya and River Oaks is being deferred. Project Budget: $487,280 Grant Funding: $0 Local Funds required: $487,280 Roofing Management Program This is an on-going, comprehensive, long-term program to maximize the useful life and integrity of VTA facilities. This program includes the pro-active scheduling of roofing rehabilitation prior to major failure, as well as unscheduled repairs, seasonal cleaning, annual roof inspections, and emergency leak response. This year’s program includes replacement of the roof at the Central Energy Plant at the Cerone Division. The Central Energy Plant, located at the Cerone Division, was built in 1979. The original roof has now reached the end of its service life and is in need of replacement. Project Budget: $299,000 Grant Funding: $0 Local Funds required: $299,000 Painting Management Program This is an on-going, comprehensive long-term program to maintain the appearance and integrity of VTA facilities. This year’s request is comprised solely of an annual allowance

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ for unscheduled painting and touch-ups. Repainting of eight Guadalupe Corridor Stations will be conducted as part of the Guadalupe Corridor Station Platform Retrofit Project. Project Budget: $350,000 Grant Funding: $0 Local Funds required: $350,000 Other Office Furniture Existing workstations must be reconfigured to accommodate changing work assignments. This budget will reimburse VTA labor involved in these activities. Project Budget: $100,000 Grant Funding: $0 Local Funds required: $100,000 AUGMENTED CAPITAL PROJECTS Passenger Facilities Palo Alto Depot Station Renovation This project will restore and rehabilitate the Downtown Palo Alto Train Depot. On the California Historic Register of Structures, the project will extend the useful life of the building and allow the continued use of the building as a CalTrain ticket sales area, VTA operator restroom facility, and potentially may be used for passenger amenities such as food and beverage sales. This augmentation is required because the extent of the restoration is greater than anticipated. Seismic upgrades will be required for safety and to comply with the California State Historical Building Code. Additional federal funds in the amount of $429,684 have been made available to help fund additional required work. Existing Budget: $1,060,340 Augmentation: $537,335 Total Grant Funding: $1,211,118 Total Local Funds required: $386,557 Rail Facility Expansion Downtown/East Valley Conceptual Design Conceptual Engineering (CE) and an EIR/EIS are currently underway for the Downtown East Valley projects, which include two LRT extensions and one BRT project. It had been anticipated that CE would be completed in the early part of FY 2002-03. However, the resolution of key issues that have emerged during CE, as well as the potential delay of funding for Preliminary and Final Design, warrant the continuation of CE through FY 2002-03. The proposed budget augmentation will fund consultant services, staff and other costs to address multiple issues. The major issues are continuing:

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ • • • • • Public outreach to secure community support for key project issues such as the downtown alignment and grade separations on Capitol Expressway; CE activities for continued coordination with the Silicon Valley Rapid Transit Corridor; Activities to secure agreements with local agencies on key project elements such as traffic provisions, utility relocations and urban design; Coordination of the Monterey BRT project with the activities for the Line 22 BRT project; and Additional design for the Eastridge Transit Center (potential early project phase.)

Existing Budget: $7,430,000 Augmentation: $2,311,000 Total External Funding: $5,741,000 2000 Measure A Funding: $4,000,000 Total Local Funds required: $0

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ 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, upholding 1996 Measure B and allowing the sales tax to stand. In February 2000, the VTA Board of Directors approved the execution of the Master Agreement with Santa Clara County Board of Supervisors. The agreement identifies the roles, responsibilities and obligations of County and VTA in the implementation of the 1996 Measure B Transportation Improvement Program (MBTIP). In the agreement, the County Board of Supervisors has committed actual 1996 Measure B sales tax receipts for use in the completion of the 1996 Measure A Projects. The Base Case Implementation Plan, approved by the County Board of Supervisors in June 1999, and updated every June thereafter, identifies the 1996 Measure B Projects along with preliminary budget estimates. Budget estimates found in this document for 1996 Measure B Projects reflects those recommended for adoption at the June 7, 2002 Joint VTA and County Board Of Supervisors workshop. The ultimate project scopes and estimated costs for completion will be revised based on Baseline Scope, Schedule & Costs submitted to both VTA and County Boards at the completion of preliminary design or project study reports. The 1996 MBTIP projects are grouped into seven programs: Transit Program, Highway Program, Bicycle Program, Pavement Management Program, Fund Transfer Projects, Expressway Signal Synchronization Program, and Level of Service Intersection Improvement Program. VTA is not involved in the administration of the last two programs. The following is a description of the Transit, Highway, Bicycle, Pavement Management Programs, and Fund transfer Projects.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ TRANSIT PROGRAM The Transit Program includes six major rail projects. The total projected cost is $1.1 billion.

Tasman East Light Rail Project The Tasman East Project extends the current double track light rail system 4.8 miles east of North First Street. It is being built in three phases and will add seven light rail stations and three park & ride lots. Two of the stations are elevated on 1.7 miles of elevated structure in the City of Milpitas. Revenue Service from Baypointe Station to North First Street began in December 1999. Project Budget: $287,370,952 Funding: $87,293,321 in 1996 MBTIP funds, $100,118,227 in Federal/State/ Local funds, and $99,959,405 from 2001 Series A Sales Tax Revenue Bonds Estimated Completion: Spring 2001 (Zanker to I -880) and Spring 2004 (I-880 to Hostetter)

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ Vasona Light Rail Project The Vasona Project extends light rail 5.2 miles from downtown San Jose to downtown Campbell, utilizing Union Pacific freight rail alignment, primarily on single track from Diridon Station to Campbell. In downtown San Jose, it transitions from Diridon Station in a short tunnel to San Fernando Street and Delmas Avenue. From that point, it runs at grade along Delmas to Woz Way where it connects to the existing Guadalupe line. Eight stations will be constructed in the first phase. VTA has committed to provide $16.5 million towards the completion of the project. In January 2001, the VTA Board approved an augmentation to this project in the amount of $20.5 million to include the Winchester Extension. Project Budget: $320,912,552 Funding: $179,952,476 in 1996 MBTIP funds, $84,543,191 in Federal/State/ Local funds, and $56,416,885 from 2001 Series A Sales Tax Revenue Bonds Estimated Completion: Spring 2005 Capitol Light Rail Project The Capitol Project extends light rail in the median of Capitol Avenue for an additional 3.3 miles beyond Tasman East to just south of Alum Rock Avenue. The project includes double track with four stations (three of which have park-and-ride facilities). Project Budget: $166,541,756 Fund: $122,349,102 in 1996 MBTIP funds, $2,222,251 in Local funds, and $41,970,404 from 2001 Series A Sales Tax Revenue Bonds Estimated Completion: Summer 2004 New Rail Vehicles The expansion of Tasman East, Capitol, and Vasona Corridors will require approximately 30 new low-floor light rail vehicles in order to meet the resultant service levels. VTA has committed to provide funds in excess of the $90 million identified in the MBTIP. Project Budget: $96,012,953 Funding: $90,000,000 in 1996 MBTIP funds and $6,012,953 in VTA funds Estimated Completion: Winter 2003 Fremont/South Bay Commuter Rail Connection This project was originally intended to connect Santa Clara County with BART in Alameda County using commuter rail. However, based on the recently completed corridor MIS, BART to San Jose has become the preferred investment as part of the 2000 Measure A Transit Program. Therefore, the scope of this project has changed and will be used to purchase the required right-of-way for the BART extension. Project Budget: $84,955,003 Funding: $3,275,003 in 1996 MBTIP funds and $81,680,000 in State TCRP funds Estimated Completion: Winter 2002
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VTA FY 2002-03 BUDGET

______________________________________________________________________________ Caltrain Service Improvements This project will provide a series of station and track improvements for the Caltrain Commuter Rail service within Santa Clara County. Project Budget: $125,770,000 Funding: $49,656,000 in 1996 MBTIP funds and $76,114,000 in State TCRP funds Estimated Completion: 2006 Community Orientated Design Enhancement (CODE) Program – Rail The Board of Supervisors pledged as a goal to incorporate up to 2% of the construction costs of 1996 MBTIP rail projects for aesthetic enhancements of the projects. This is a placeholder for such costs. The appropriate cost will be allocated back to the respective rail projects. Project Budget: $7,187,000 in 1996 MBTIP funds

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ HIGHWAY PROGRAM The Highway Program includes eleven major projects. The total projected cost is $622.9 million.

Route 880 Widening This project will widen Route 880 between Route 101/North First Street and Montague Expressway from a four to a six-lane freeway. Widening would occur within the existing 40-foot median and include a 12-foot lane in each direction, with a center barrier. A new eight-lane Coyote Creek/Brokaw Road Interchange Bridge will be constructed. Also included is a southbound auxiliary lane from Route 101 to North First Street and ramp improvements at the southbound Brokaw Road exit ramp. Project Budget: $69,552,166 Funding: $53,763,726 in 1996 MBTIP funds and $15,788,440 in SHOPP funds Completion Date: Fall 2003

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ Route 85/87 Connector Ramps This project will complete the existing interchange by adding two connector ramps: southbound Route 85 to northbound Route 87 and southbound Route 87 to northbound Route 85. In addition, the project will construct a high occupancy vehicle (HOV) lane in each direction of Route 87, in the median between Route 85 and Branham Lane. Project Budget: $44,705,738 Funding: $41,205,738 in 1996 MBTIP funds and $3,500,000 in State TCRP funds Completion Date: Fall 2003 Route 101 Widening The widening from four to six lanes, plus two HOV lanes, will occur in the existing median between Burnett Road in Morgan Hill and Metcalf Road in San Jose. The project will provide an additional two lanes in each direction and a 10-foot inside shoulder. Project Budget: $52,213,211 Funding: $47,813,211 in 1996 MBTIP funds and $4,400,000 in State funds Completion Date: Winter 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 scope of this project includes: • • • • Replacing the Route 85/Route 101 connector; Modifying interchange ramps at Moffett Boulevard, North Shoreline Boulevard and Old Middlefield Way; Constructing additional lanes; and Constructing high occupancy vehicle (HOV) direct-connector ramps between northbound Route 85 to northbound Route 101 and southbound Route 101 to southbound Route 85.

Project Budget: $141,753,622 Funding: $123,753,622 in 1996 MBTIP funds and $18,000,000 in STIP funds Completion Date: 2004 Route 237/880 Interchange This interchange completion project is comprised of two stages including: (1) add direct high-occupancy vehicle connectors for southbound I-880 to westbound Route 237 and eastbound Route 237 to northbound I-880; (2) add a southbound braided exit ramp from I-880 to Tasman Drive interchange. Project Budget: $48,487,066 Funding: $25,987,066 in 1996 MBTIP funds and $22,500,000 in STIP funds
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VTA FY 2002-03 BUDGET

______________________________________________________________________________ Completion Date: Spring 2004 Route 87 HOV Lanes (Between Branham Lane and I-280) This project will construct a high-occupancy vehicle (HOV) lane in each direction in the existing median between Branham Lane and I-280, a distance of approximately 4.5 miles. In addition, the project will include installation of ramp meters, HOV 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: $75,215,131 Funding: $32,215,131 in 1996 MBTIP funds and $43,000,000 in STIP and SHOPP funds Completion Date: 2004 Route 87 HOV Lanes (Between I-280 and Julian Street) This project widens Route 87, from I-280 to 0.2 miles north of Julian Street, from a four to a six-lane freeway. The project includes adding a high occupancy (HOV) lane in each direction and installing ramp meters at the entrance ramps. Project Budget: $46,603,752 Funding: $27,103,752 in 1996 MBTIP funds and $19,500,000 in STIP funds Completion Date: 2004 Route 85/101 (S) Interchange – South San Jose This project will construct high-occupancy vehicle (HOV) direct connectors from northbound Route 101 to northbound Route 85 and southbound Route 85 to southbound Route 101. The southbound Route 101 to northbound Route 85 branch connector will also be constructed. In addition, the project will include the widening of Route 101 to eight lanes between Bernal Road and Metcalf Road. Project Budget: $62,145,925 Funding: $37,145,925 in 1996 MBTIP funds and $25,000,000 in State funds (TCRP) Completion Date: Summer 2004 Route 17 Improvements The scope of this project includes the following recommended projects: • • • • • Modify San Tomas Expressway between Winchester Boulevard and White Oaks Road; Add an auxiliary lane on northbound 17 between Route 85 and Camden Avenue; Add an auxiliary lane on northbound 17 between Camden Avenue and Hamilton Avenue; Improve the merge of I-280 with southbound Route 17; Improve the Hamilton Avenue off-ramp with added paving and overhead sign; and
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VTA FY 2002-03 BUDGET

______________________________________________________________________________ • Add a direct connector from northbound 17 to northbound 85.

Project Budget: $40,000,000 Funding: $40,000,000 in 1996 MBTIP funds Completion Date: 2002 Route 152 Safety Improvements The project will provide safety and operational improvements on Route 152, between Route 101 and Route 156. Project Budget: $22,971,905 Funding: $17,471,905 in 1996 MBTIP funds and $5,500,000 in City of Gilroy funds Completion Date: 2002-2004 Route 85 Noise Mitigation The scope of this project is to reduce freeway noise along a segment of Route 85. The intent is to mitigate noise along the Route 85 corridor. A noise attenuation study is being conducted on a one-mile segment of Route 85 and should be complete in Summer 2002. Project Budget: $9,251,000 Funding: $9,251,000 in 1996 MBTIP funds Completion Date: 2004 Community Orientated Design Enhancement (CODE) Program – Highway The Board of Supervisors pledged as a goal to incorporate up to 2.0% of the construction costs of 1996 MBTIP highway projects for aesthetic enhancements of the projects. Due to program shortfalls, this project has been reduced in scope to include only costs incurred to date Project Budget: $600,000 in 1996 MBTIP funds Consolidated Biological Mitigation Site This project was created to construct a consolidated biological mitigation site to alleviate environmental impacts from eight Measure B projects: 101 Widening, Capitol Light Rail, Vasona Light Rail, I-880 Widening, Route 85/101 (Mountain View), Route 85/101 (San Jose), Route 85/87 Interchange, and Route 17 Improvements. Project Budget: $9,400,000 Funding: $9,400,000 in 1996 MBTIP funds Completion Date: Spring 2002

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ 2000 MEASURE A TRANSIT IMPROVEMENT PROGRAM In accordance with the 2000 Measure A ballot language, 100% of the sales tax funds generated by the measure are dedicated to transit. This section describes some key capital projects for which 2000 Measure A funding is committed, including those that will require additional funding from other sources and, in some cases for which full project funding is not yet identified. • Zero-Emission Vehicles and Facilities – VTA is committed to reducing particulate emissions from the bus fleet. On December 14, 2000, the VTA Board of Directors adopted a Zero-Emission Bus (ZEB) Plan, which involves the gradual conversion to a full fleet of fuel cell powered buses, selecting the low-emission diesel fuel path over the alternative fuel path (compressed natural gas). The ZEB plan includes the nearterm acquisition of low-emission diesel buses, as well as retrofitting existing diesel bus engines with devices to reduce emissions. VTA will also implement the ZeroEmission Bus Demonstration project. Downtown East Valley Transit Improvement Plan – In August 2000, VTA Board of Directors approved a Preferred Investment Strategy for the Downtown East Valley area of San Jose. It includes the following projects: o Light rail along Santa Clara Street and Alum Rock Avenue from the Capitol LRT line to Downtown San Jose; o Light rail along the Capitol Expressway from the Alum Rock Station on the Capitol LRT line to the Eastridge Mall area; and o Light rail along the Capitol Expressway from the Eastridge Mall area to the Guadalupe LRT line; and o Bus Rapid Transit Improvements on Monterey Highway from Downtown San Jose to the Santa Teresa Station on the Guadalupe LRT line. Low-floor Light Rail Vehicles – VTA has committed to improving accessibility by converting the Light Rail Vehicle (LRV) fleet to low-floor vehicles, with the VTA Board having approved a contract for acquiring 100 low-floor LRVs. Silicon Valley Rapid Transit Corridor Project – VTA is conducting a Major Investment Study (MIS) for the Silicon Valley Rapid Transit Corridor. The project area stretches over 20 miles form Union City in Alameda County to the cities of Milpitas, San Jose, and Santa Clara in Santa Clara County. It contains three existing rail lines that are owned by the Union Pacific Railroad (UPRR). The MIS compares alternative modes including rapid rail (such as BART), light rail, express bus, and commuter rail. Following completion of the MIS, an EIS/EIR will be prepared for the Preferred Investment Strategy. Bus Rapid Transit Corridors – VTA has embraced the concept of Bus Rapid Transit (BRT) and identified three BRT corridors in VTP 2020. VTA currently has two BRT corridors under active development – the Line 22 BRT corridor and the Monterey Highway BRT Corridor. VTP 2020 also identifies the Stevens Creek Boulevard as a potential BRT corridor; however, no study of the corridor has been undertaken to date.

• •

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ • Caltrain Service Improvements – VTA, in cooperation with the Peninsula Corridor Joint Powers Board (PCJPB), is directly improving or financially supporting many aspects of the Caltrain service. Key elements include system rehabilitation, upgraded station facilities, new express service, expanded service to Gilroy and electrification. Additional 2000 Measure A Projects: o New Light Rail Corridors – At least two future light rail corridors have been identified for Major Investment Studies and seven potential candidate corridors are listed. o Transit Access for San Jose International Airport – VTA has participated with Airport Department staff in an ongoing effort to develop a transit plan in conjunction with the Airport expansion project. This project would provide a link from San Jose International Airport to VTA’s Guadalupe Light Rail Transit Line on North First Street in San Jose, and to Caltrain and, potentially, future BART in Santa Clara. o Altamont Commuter Express (ACE) Rail Service Upgrade – There are two phases of service frequency improvements to ACE service. They are: § An initial increase to six trains per day, which was implemented in mid2001; and § An additional expansion to twelve trains. There are also track and station improvements o Dumbarton Rail Corridor – The project provides VTA’s share of matching funds for a partnership with Alameda and San Mateo counties for the rebuilding of the Dumbarton Rail Corridor. The service would run over the Dumbarton Rail Bridge between the Union City BART station in Alameda County and Caltrain in San Mateo and Santa Clara counties. o Highway 17 Bus Service Improvements – funding for additional buses and service upgrades for the Highway 17 Express Bus service.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ FUND TRANSFER PROGRAM In order to maximize funding opportunities and operational efficiencies, VTA has agreed to secure Federal or State grant funds and sales tax revenue bond proceeds for certain 1996 MBTIP projects and to release 1996 MBTIP funds to fund other projects. Currently, fund transfers have been performed on the Tasman East, Capitol, and Vasona Light Rail Projects. Tasman East Light Rail Project Transfer $72.8 million of Federal and State grants funds and $100.0 million of bond proceeds were transferred into this project. A net of $167.9 million was transferred out for other projects or purposes. Vasona Light Rail Project Transfer $51.6 million of Federal and State grants funds and $56.4 million of bond proceeds were transferred into this project. The same amount was transferred out for other projects or purposes. Capitol Light Rail Project Transfer $41.9 million of bond proceeds were transferred into this project. The same amount of Measure B funds were transferred out for other projects or purposes. BICYCLE PROGRAM The 1996 MBTIP has allocated $12.0 million towards the Bicycle Program, a series of bicycle projects that were developed as part of the Countywide Bicycle Plan. VTA’s Board of Directors adopted the Bicycle Plan in October 2000 after approval of a ten-year expenditure plan by VTA and the County Board of Supervisors. PAVEMENT MANAGEMENT PROGRAM This program administers and distributes 1996 MBTIP funds, along with other sources, to local jurisdictions for street repair and other transportation projects. VTA is responsible for the administration and distribution of program funds. The total MBTIP allocation to this the program is projected at $90.0 million.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ OTHER LOCAL PROJECTS VTA has entered into construction agreements with various cities in the County. The major agreements are: City of Campbell Participation in the Vasona Light Rail Project The City of Campbell is contributing $500,000 towards the construction of the Winchester Station. The City is also contributing an additional $54,324 towards the design cost of Winchester Station so that VTA will incorporate requested design changes related to parking in the Winchester Station Area. Project Budget: 554,324 Funding: $554,324 from the City of Campbell Completion Date: November 2004 City of San Jose Construction Associated with the Capitol Light Rail Project The City of San Jose is funding work by VTA’s civil construction contractor for the Capitol Light Rail Project through a cooperative agreement with VTA. The scope of work includes widening McKee Road, replacing a storm drain box culvert within the intersection of Capitol Avenue and McKee Road, applying a pavement overlay along Capitol Avenue, and installing emergency vehicle preemption equipment at certain intersections. Project Budget: 744,991 Funding: $744,911 from the City of San Jose Completion Date: December 2003 Santa Clara Valley Water District Construction Associated with the Capitol Light Rail Project The Santa Clara Valley Water District (SCVWD) flood protection project on Upper Penitencia Creek requires additional flood conveyance capacity at Capitol Avenue. Since the Capitol Light Rail Project requires widening and retrofitting the Penitencia Creek Bridge, SCVWD has requested that VTA combine the two projects into a single construction contract that will replace the bridge. SCVWD will pay VTA the incremental cost between VTA’s planned retrofit/widening and bridge replacement. Project Budget: 1,447,260 Funding: $1,447,260 from Santa Clara Valley Water District Completion Date: August 2002 Montague Expressway Widening The City of Milpitas Montague Expressway Widening Project is scheduled for construction concurrent with the construction of the Tasman East elevated guideway contract. Since both of these projects will involve work at the Montague and Capitol

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ Avenue intersection, the City has requested that VTA combine the two projects into a single construction contract. Project Budget: $1,113,676 Funding: $1,113,676 from the City of Milpitas Completion Date: 2002 I-880/Coleman Avenue Interchange Reconstruct the Coleman Avenue Interchange at I-880 in San Jose to improve access to the Mineta San Jose International Airport. This project is sponsored by the City of San Jose. Project Budget: $65,500,000 Funding: $5,000,000 in City of San Jose funds, $5,000,000 in State (TCRP) funds and $55,500,000 in State Transportation Improvement program (STIP) 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 initial environmental evaluation. Project Budget: $3,000,000 Funding: $1,000,000 in VTA Gateway Studies funds, $1,000,000 in State (TCRP) funds and $1,000,000 in Alameda County Transportation Improvement Authority funds. Completion Date: 2004 South County Gateway Study Study multi-modal transportation improvements at the southern gateway to Santa Clara County to identify cost-effective transportation projects. Based on preliminary findings in VTP 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 Benito 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: $750,000 Funding: $750,000 in VTA Gateway Studies funds. Completion Date: 2003 Peninsula Gateway Corridor Study Study multi-modal transportation improvements in the US 101 and Dumbarton Bridge approaches as a gateway into Santa Clara and San Mateo Counties. Project Budget: $500,000 Funding: $250,000 in VTA Gateway Studies funds, $250,000 from San Mateo CCAG
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VTA FY 2002-03 BUDGET

______________________________________________________________________________ Completion Date: 2003 Corridor Studies Study major freeway corridors as defined in VTP 2020 including US 101 North; US 101 Central; Route 237/101 Corridor; Route 85/I-280 Corridor and Route 152/156 Conceptual Alternatives Study. Project Budget: $2,000,000 Funding: $1,400,000 in Local Program Reserve funds and $600,000 in City of San Jose funds. Completion Date: 2004

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VTA FY 2002-03 BUDGET

______________________________________________________________________________

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ APPENDIX A Santa Clara Valley Transportation Authority Employee Positions by Division and Pay Ranges Projected as of 7/1/2002
Number of Positions 1 1 1 1 1 1 1 1 2 8 6 9 3 36 Base Annual Rate Mid/Top Min Step Max 115,490 95,020 99,776 70,905 70,905 50,412 45,733 46,782 44,719 35,439 34,777 34,777 133,969 110,223 115,729 82,250 82,250 58,478 53,050 56,623 54,060 42,787 41,993 41,993 207,640 152,447 125,426 131,691 93,595 93,595 66,544 60,367 -

Job Descriptions Office of the General Manager General Manager Chief of Staff to the GM Government Affairs Manager Board Secretary Document Management Supervisor Transportation Policy & Program Manager Executive Secretary to the GM Executive Secretary Engineering Technician II/I Board Assistant Reproduction Services Specialist II/I Document Control Clerk II/I Office Specialist II Total Office of the General Counsel General Counsel Assistant General Counsel Senior Assistant Counsel Legal Secretary Administrative Services Assistant Total

1 2 4 1 1 9

121,249 95,020 48,005 37,612

140,649 110,223 55,686 43,630

159,539 160,049 125,426 63,366 49,648

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VTA FY 2002-03 BUDGET

______________________________________________________________________________
Number of Positions 1 1 1 1 1 1 1 1 2 3 1 1 1 6 5 2 9 1 1 6 1 2 1 1 1 1 8 9 1 9 3 83 Base Annual Rate Mid/Top Min Step Max 133,689 99,766 99,766 95,020 82,063 74,437 70,905 67,531 67,531 67,531 67,284 67,284 61,254 61,003 61,003 61,003 58,353 55,088 53,786 48,898 48,419 48,005 45,733 41,841 39,352 37,612 35,994 35,235 33,368 33,368 31,949 155,079 115,729 115,729 110,223 95,193 86,347 82,250 78,336 78,336 78,336 81,741 81,741 71,055 74,159 74,159 74,159 67,689 66,668 65,069 59,176 58,605 55,686 53,050 50,543 47,551 43,630 43,463 50,378 40,288 40,288 176,470 131,691 131,691 125,426 108,323 98,256 93,595 89,140 89,140 89,140 80,856 77,025 63,366 60,367 49,648 -

Job Descriptions Operations-Administration Chief Operating Officer Deputy Dir., Service & Operation Planning DD, Transportation Tech Trng.& Rail Actv. Chief of Security Operations Program Manager Service Planning Manager Policy & Administrative Mgr. - Operations Accessible Services Program Manager Light Rail Signal Supervisor Senior Management Analyst Technical Training Supervisor Light Rail Technical Training Supervisor Service Planning Supervisor Technical Trainer Light Rail Technical Trainer Transportation Supervisor Management Analyst Engineering Technician III/II/I Transit Svc. Development Spec. III/II/I/Aide Tranist Svc. Development Spec. II/I/Aide Engineering Technician II/I Administrative Support Officer Executive Secretary Accessible Services Representative Secretary Adminstrative Services Assistant Office Specialist II Fare Inspector Traffic Checker Traffic Checker (U) Operator Trainee Total

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VTA FY 2002-03 BUDGET

______________________________________________________________________________
Number of Positions 1 5 2 4 42 11 2 1 2 4 1 1 24 5 6 9 18 94 955 70 1,257 Base Annual Rate Mid/Top Min Step Max 109,979 78,171 67,531 67,531 61,003 61,003 61,003 59,747 58,353 48,005 48,005 45,733 39,083 39,083 35,994 35,994 35,672 34,403 34,403 127,576 90,678 78,336 78,336 74,159 74,159 74,159 72,308 61,689 55,686 55,686 53,050 55,869 55,869 43,463 43,463 50,981 49,171 49,171 145,172 103,185 89,140 89,140 77,025 63,366 63,366 60,367 -

Job Descriptions Operations - Transportation Deputy Director, Transit Operations Transportation Superintendent Asst. Superintendent- Field Operations Asst. Superintendent-Transit Comm. Transportation Supervisor Transit Division Supervisor Dispatcher Supervisor Bid Dispatch Timekeeping System Spec. Management Analyst Office Support Supervisor Administrative Support Officer Executive Secretary Dispatcher - Bus Dispatcher - LR Account Clerk II/I Office Specialist II Transit Radio Dispatcher Light Rail Operator Bus Operator Operator - LT Leave (partially funded) Total

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VTA FY 2002-03 BUDGET

______________________________________________________________________________
Number of Positions 1 2 1 1 1 1 1 4 1 1 1 1 1 1 1 1 3 1 2 1 5 19 1 2 9 8 2 1 5 1 6 3 1 6 3 1 1 13 1 1 3 Base Annual Rate Mid/Top Min Step Max 109,979 95,020 95,020 95,020 90,476 82,063 78,171 78,171 78,171 78,171 78,171 78,171 74,476 74,476 74,437 70,618 69,591 67,531 67,531 67,284 67,284 67,284 67,284 67,284 64,750 64,750 63,679 63,679 62,236 61,254 61,003 61,003 61,003 60,050 60,050 60,050 60,050 60,050 60,050 58,353 58,353 127,576 110,223 110,223 110,223 104,952 95,193 90,678 90,678 90,678 90,678 90,678 90,678 90,517 90,517 86,347 85,852 84,322 78,336 78,336 81,741 81,741 81,741 81,741 81,741 73,590 73,590 77,375 77,375 75,620 71,055 74,159 74,159 74,159 68,245 68,245 68,245 68,245 68,245 68,245 67,689 67,689 145,172 125,426 125,426 125,426 119,428 108,323 103,185 103,185 103,185 103,185 103,185 103,185 98,256 89,140 89,140 77,025 77,025

Job Descriptions Operations - Maintenance Deputy Director, Transit Maintenance General Superintendent - Maintenance Facilities Maintenance Manager Maintenance Support Services Manager Maintenance Engineering Manager Rail Vehicle Projects Manager Communications Systems Manager Maintenance Superintendent Materials Manager Rail Integration Projects Manager Light Rail Equipment Superintendent LR Way, Power & Signal Superintendent Sr. Mechanical Engineer - Auto Systems Sr. Systems Engineer Quality Assurance & Warranty Manager Light Rail Power Supervisor Communications Systems Analyst Light Rail Signal Supervisor Sr. Management Analyst Supervising Maintenance Instructor LR Vehicle Maintenance Supervisor Transit Maintenance Supervisor Facilities Maintenance Coordinator Warranty Coordinator Overhead Line Worker Substation Maintainer Assoc. Mechanical Eng. - Auto Systems Associate Systems Engineer Vehicle Parts Supervisor Nonrevenue Vehicle Coordinator Maintenance Instructor - Bus Maintenance Instructor - LR LR Track Maintenance Supervisor Foreperson - LRT Overhaul & Repair Foreperson Paint & Body Foreperson Paint & Body Foreperson - LRT Transit Foreperson Upholstery Foreperson LR Station & Wayside Maintenance Supv. Management Analyst

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VTA FY 2002-03 BUDGET

______________________________________________________________________________
Number of Positions 1 3 14 1 4 2 50 35 15 11 130 9 7 1 5 8 1 1 7 9 1 5 3 5 1 2 1 5 6 14 1 17 22 7 3 25 2 10 6 3 84 13 1
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Job Descriptions Operations - Maintenance (Cont'd) Passenger Facilities Maintenance Supv. Quality Assurance & Warranty Specialist LR Signal Maintainer Engineering Technician III/II/I Electronic Technician - LRT Electronic Technician - Systems Electro - Mechanic Overhaul & Repair Mechanic Paint & Body Worker Paint & Body Worker - LR Transit Mechanic Upholsterer Sr. Track Worker Parts Foreperson Facilities Maintenance Representative Office Support Supervisor Administrative Support Officer Janitor Supervisor Track Worker Transit Mechanic - G Executive Secretary Maintenance Scheduler Management Secretary Materials Resource Scheduler General Maintenance Mechanic Secretary Sr. Utility Worker Support Mechanic Account Clerk II Office Specialist II Facilities Maintenance Assistant Bus Stop Maintenance Worker Service Mechanic Mechanic Trainee Utility Worker Parts Clerk - Bus Parts Clerk - LR Parts Clerk - System Service Worker - Bus Service Worker - System Service Worker - Bus & System Service Worker - LR Automotive Attendant

Base Annual Rate Mid/Top Min Step Max 58,353 58,057 55,613 55,088 55,058 55,058 55,058 55,058 55,058 55,058 55,058 55,058 55,058 53,498 48,419 48,005 48,005 48,005 47,528 47,258 45,733 44,641 41,481 40,471 39,534 39,352 37,730 36,150 35,994 35,994 35,333 35,149 34,819 34,819 34,350 34,278 34,278 34,278 33,530 33,530 33,530 33,530 32,614 67,689 70,230 67,284 66,667 62,566 62,566 62,566 62,566 62,566 62,566 62,566 62,566 62,566 60,819 58,605 55,686 55,686 55,686 53,726 53,726 53,050 53,997 48,118 48,898 47,779 47,551 45,564 51,688 43,463 43,463 42,663 42,435 49,795 49,795 41,453 49,005 49,005 49,005 47,944 47,944 47,944 47,944 39,352 77,025 63,366 63,366 63,366 60,367 54,755 -

VTA FY 2002-03 BUDGET

______________________________________________________________________________
Number of Positions 10 16 2 17 7 19 741 Base Annual Rate Mid/Top Min Step Max 31,290 29,744 29,744 29,744 29,723 28,288 37,730 42,515 42,515 42,515 42,474 40,456 -

Job Descriptions Operations - Maintenance (Cont'd) Janitor Transit Facilities Worker - Bus Transit Facilities Worker - LRT Transit Facilities Worker - System Lead Maintenance Worker - LRT Maintenance Worker - LRT Total

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VTA FY 2002-03 BUDGET

______________________________________________________________________________
Number of Positions 1 1 3 3 1 5 1 8 1 1 1 11 9 4 1 2 4 20 1 3 15 6 3 1 1 2 4 8 5 10 136 Base Annual Rate Mid/Top Min Step Max 133,689 109,979 95,020 95,020 95,020 78,171 67,531 67,531 67,531 67,531 67,531 69,591 69,591 69,591 69,591 63,264 58,353 58,353 58,353 58,353 59,747 59,747 55,563 52,931 48,805 45,733 41,481 39,502 37,612 35,994 155,079 127,576 110,223 110,223 110,223 90,678 78,336 78,336 78,336 78,336 78,336 84,322 84,322 84,322 84,322 76,579 67,689 67,689 67,689 67,689 72,308 72,308 64,453 61,400 55,686 53,050 48,118 45,822 43,630 43,463 176,470 145,172 125,426 125,426 125,426 103,185 89,140 89,140 89,140 89,140 89,140 77,025 77,025 77,025 77,025 73,343 69,869 63,366 60,367 54,755 52,142 49,648 -

Job Descriptions Administrative Services Chief Administrative Officer Chief Information Officer Human Resources Manager Information Systems Manager Risk Manager Information Systems Supervisor Senior Management Analyst Senior Human Resources Analyst Claims Supervisor Rail Safety Supervisor Environmental Health & Safety Supervisor Senior Information Systems Analyst Senior Programmer Analyst Database Administrator Unix Adminstrator Environmental Health & Safety Specialist Organizational Dvlpmt & Training Spec. Human Resources Analyst Management Analyst Claims Analyst Information Systems Analyst II/I/Asst. Programmer Analyst III/II/I Transit Safety Officer Personnel Services Administrator Administrative Support Officer Executive Secretary Management Secretary Personnel Services Assistant Administrative Services Assistant Office Specialist II Total

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VTA FY 2002-03 BUDGET

______________________________________________________________________________
Number of Positions 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 7 1 1 1 1 3 1 1 2 1 1 2 2 3 3 1 1 2 3 1 1 11 7 9 2 1 Base Annual Rate Mid/Top Min Step Max 154,767 109,979 109,979 99,766 95,020 95,020 95,020 95,020 86,179 86,179 86,179 82,063 82,063 82,063 78,171 74,476 74,476 74,476 74,476 74,437 70,905 70,905 70,905 67,531 63,679 63,679 63,679 63,679 63,679 63,679 63,679 63,679 62,054 61,254 59,747 58,353 58,057 58,057 55,088 54,719 54,719 54,719 179,530 127,576 127,576 115,729 110,223 110,223 110,223 110,223 99,968 99,968 99,968 95,193 95,193 95,193 90,678 90,517 90,517 90,517 90,517 86,347 82,250 82,250 82,250 78,336 77,375 77,375 77,375 77,375 77,375 77,375 77,375 77,375 75,095 71,055 72,308 67,689 70,230 70,230 66,667 66,539 66,539 66,539 204,292 145,172 145,172 131,691 125,426 125,426 125,426 125,426 113,757 113,757 113,757 108,323 108,323 108,323 103,185 98,256 93,595 93,595 93,595 89,140 80,856 77,025 -

Job Descriptions Construction Chief Construction Officer Deputy Dir., Rail Design & Construction Deputy Director, Highway Program Engineering Group Manager-Line Segment Design & Construction Mgr.-Vasona Design & Construction Mgr.-Rail Ext. (U) Project Systems Manager Facilities Design & Construction Manager Facilities Design Manager Systems Design Manager Transportation Engineering Manager Business Relations Manager Survey & Mapping Manager Principal Transportation Planner Manager-Construction Inspection Sr. Systems Design Engineer Sr. Transportation Engineer Sr. Architect Sr. Cost Coordinator Sr. Transportation Planner Sr. Land Surveyor Principal Construction Inspector Utilities Coordination Manager Sr. Accountant Associate Civil Engineer Associate Environmental Engineer Associate Electrical Engineer Associate Mechanical Engineer Associate Systems Design Engineer Associate Transportation Engineer Associate Architect Schedule Coordinator Contracts Administrator II/I/Asst. Associate Land Surveyor Business Systems Analyst II/I Management/Assoc. Mgmt. Analyst Utilities Coordinator Sr. Construction Inspector Engineering Technician III/II/I Assistant Transportation Engineer Assistant/Jr. Civil Engineer Assistant Architect

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VTA FY 2002-03 BUDGET

______________________________________________________________________________
Number of Positions 19 5 2 1 1 1 2 6 2 11 135 Base Annual Rate Mid/Top Min Step Max 52,758 48,005 45,733 44,924 43,052 43,052 41,065 39,352 39,352 35,994 63,835 55,686 53,050 54,311 52,027 52,027 49,606 47,551 47,551 43,463 63,366 60,367 -

Job Descriptions Construction (Cont'd) Construction Inspector Office Support Supervisor Executive Secretary Accountant I Construction Materials Mgmt. Technician Engineering Technician I Accountant Assistant Engineering Aide Secretary Office Specialist II Total

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VTA FY 2002-03 BUDGET

______________________________________________________________________________
Number of Positions 1 1 1 4 1 1 1 1 1 8 2 4 1 3 2 1 2 10 1 3 3 11 9 1 1 3 1 1 2 2 5 2 1 4 20 1 2 4 4 5 4 135 Base Annual Rate Mid/Top Min Step Max 133,689 109,979 95,020 95,020 78,171 78,171 78,171 74,437 67,531 67,531 70,905 70,905 67,531 67,531 67,531 67,531 58,353 58,353 58,353 58,353 58,353 62,054 62,054 61,940 59,747 53,261 48,005 48,005 45,733 45,733 47,962 44,924 41,481 41,481 41,065 39,352 38,073 36,680 35,994 32,911 33,071 155,079 127,576 110,223 110,223 90,678 90,678 90,678 86,347 78,336 78,336 82,250 82,250 78,336 78,336 78,336 78,336 67,689 67,689 67,689 67,689 67,689 75,095 75,095 75,255 72,308 64,452 55,686 55,686 53,050 53,050 58,057 54,311 48,118 48,118 49,606 47,551 45,975 44,285 43,463 39,717 39,922 176,470 145,172 125,426 125,426 103,185 103,185 103,185 98,256 89,140 89,140 93,595 93,595 89,140 89,140 89,140 89,140 77,025 77,025 77,025 77,025 77,025 63,366 63,366 60,367 60,367 54,755 54,755 -

Job Descriptions Fiscal Resources Chief Financial Officer Controller Purchasing & Materials Manager Fiscal Resources Manager Contracts Manager Investment Program Manager Revenue Services Manager Mgr., Business Analysis & Debt Admin Purchasing Supervisor Sr. Accountant Sr. Contracts Administrator Sr. Construction Contracts Administrator Sr. Financial Analyst Sr. Internal Auditor Sr. Management Analyst Sr. Human Resources Analyst HR Analyst Accountant III/II/I Internal/Associate Internal Auditor Management Analyst Financial Analyst Const. Contracts Administrator II/I Contracts Administrator II/I/Asst. Contracts Administrator II (CEMA) Business Systems Analyst II/I Buyer III/II/I/Asst. Office Support Supervisor Administrative Support Officer Supervising Account Clerk Executive Secretary Buyer II/I/Asst. Accountant I Supervising Vault Room Worker Management Secretary Accountant Assistant/Acct. Clerk II Secretary Storekeeper Buyer Assistant Office Specialist II Vault Room Worker Messenger Driver Total

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VTA FY 2002-03 BUDGET

______________________________________________________________________________
Number of Positions 1 1 1 1 1 2 1 1 1 3 1 1 4 2 4 2 1 3 1 1 2 1 2 5 9 1 1 1 4 7 15 4 1 4 4 4 1 5 29 134 Base Annual Rate Mid/Top Min Step Max 133,689 127,323 115,490 99,766 99,766 82,063 82,063 82,063 82,063 82,063 82,063 78,171 74,437 74,437 74,437 74,476 72,035 70,905 70,905 70,905 67,531 63,679 63,561 63,264 63,264 63,264 61,254 61,254 58,353 58,353 53,786 50,063 48,005 45,733 43,035 39,352 36,680 35,994 31,096 155,079 147,695 133,969 115,729 115,729 95,193 95,193 95,193 95,193 95,193 95,193 90,678 86,347 86,347 86,347 90,517 87,565 82,250 82,250 82,250 78,336 77,375 76,945 76,579 76,579 76,579 71,055 71,055 67,689 67,689 65,069 60,615 55,686 53,050 48,922 47,551 42,663 43,463 44,450 176,470 168,066 152,447 131,691 131,691 108,323 108,323 108,323 108,323 108,323 108,323 103,185 98,256 98,256 98,256 93,595 93,595 93,595 89,140 80,856 80,856 77,025 77,025 63,366 60,367 -

Job Descriptions Development & Congestion Mgmt. Chief Development Officer Director, Planning & Development Director, Marketing & Customer Service Deputy Dir., Transit Plng & Programming Deputy Dir., Congestion Mgmt Plng Prgm Manager, Community Oureach Manager, Market Development Real Estate Manager Environment Planning Manager Principal Transportation Planner Principal Transportation Planner - P&G Customer Service Manager Sr. Transportation Planner Sr. Transportation Planner (U) Sr. Transportation Planner - P&G Senior Transportation Engineer Senior Environmental Planner Senior Real Estate Agent Public Information Manager Transportation Policy & Program Manager Senior Management Analyst Associate Transportation Engineer Associate/Asst/Jr. Real Estate Agent Environmental Planner II/II/I Transportation Planner III/II/I Transportation Planner III/II/I (U) Creative Services Program Manager Sales Program Manager Customer Services Supervisor Management Analyst Public Communcation Specialist II/I Graphic Designer II/I Office Support Supervisor Executive Secretary Senior Information Representative Secretary Transportation Planning Aide Office Specialist II Information Services Representative Total

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ APPENDIX B Budgeted Positions by Division and Classification
FY 2000-01 Actual* 182,197 FY 2001-02 Adopted Revised Budget Budget $ 214,462 $ 222,665 FY 2002-03 % of Change from FY 02 Budget Revised $ 227,888 2.3%

Wages & Benefits (in $000's) POSITIONS BY DIVISION: Office of General Manager Office of General Counsel Operations: Administration Transportation ** Maintenance Administrative Services Construction Fiscal Resources Development/Congestion Management: Marketing & Develoment Planning & Development Congestion Management (Non-Transit) Total Positions POSITIONS BY CLASSIFICAITON: Support Services Operators Operators (PT) Operator Trainees Maintenance Total Transit Non-Transit Total Positions

$

32 7 99 1,210 693 135 106 121 80 37 20 2,540

41 9 113 1,345 771 149 137 139 88 43 28 2,863

45 9 113 1,356 795 147 145 150 91 43 26 2,920

36 9 83 1,187 741 136 135 135 73 34 27 2,596

-20.0% 0.0% -26.5% -12.5% -6.8% -7.5% -6.9% -10.0% -19.8% -20.9% 3.8% -11.1%

887 1,067 18 17 531 2,520 20 2,540

1,021 1,143 50 27 594 2,835 28 2,863

1,058 1,143 50 27 616 2,894 26 2,920

957 1,049 3 560 2,569 27 2,596

-9.5% -8.2% -100.0% -88.9% -9.1% -11.2% 3.8% -11.1%

* Represents occupied positions. ** Not including Operators on long-term leave (4 in FY 2000-01; 70 in FY 2002-03).

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ APPENDIX C Population Data for Santa Clara County by City
1970 1980 1990 2000 2001 Campbell 24,731 26,843 36,048 38,350 38,650 Cupertino 18,216 34,297 40,263 50,900 51,300 Gilroy 12,665 21,641 31,487 41,900 43,550 Los Altos 24,872 25,769 26,303 27,950 28,100 Los Altos Hills 6,862 7,421 7,514 7,925 8,025 Los Gatos 23,466 26,906 27,357 28,750 29,100 Milpitas 27,149 37,820 50,686 63,400 63,800 Monte Sereno 3,074 3,434 3,287 3,490 3,520 Morgan Hill 6,485 17,060 23,928 33,550 34,600 Mountain View 54,206 58,655 67,460 71,400 72,200 Palo Alto 55,999 55,225 55,900 58,900 60,800 San Jose 445,779 629,400 782,248 905,100 918,800 Santa Clara 87,717 87,700 93,613 102,800 104,600 Saratoga 27,199 29,261 28,061 30,000 30,200 Sunnyvale 95,408 106,618 117,229 133,000 134,000 Unincorporated 152,181 127,021 106,193 101,400 102,300 County Total 1,066,009 1,295,071 1,497,577 1,698,815 1,723,545 % of Increase 21.5% 15.6% 13.4% 1.5% California 18,136,045 23,668,145 29,760,021 34,207,000 34,818,000 As a Percentage of California 5.88% 5.47% 5.03% 4.97% 4.95%
Source: U.S. Census Bureau; California Department of Finance - Demographic Research Unit (http://www.dof.ca.gov/HTML/DEMOGRAP/e-1text.htm)

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ APPENDIX D Ten Year Summary of Santa Clara County Employment Information (Annual Average)
In 000's Civilian Labor Force* Employment Unemployment Total Unemployment Rate County State of California Wage and Salary by Employment** Services Manufacturing Retail Trade Government Wholesale Trade Construction and Mining Finance, Insurance and Real Estate Transportation and Public Utilities Agriculture Total 1992 785.0 56.1 841.1 1993 797.9 58.3 856.2 1994 806.9 53.7 860.6 1995 824.2 42.8 867.0 1996 862.8 32.2 895.0 1997 910.1 28.4 938.5 1998 928.4 30.8 959.2 1999 933.5 29.2 962.7 2000 988.2 20.0 1,008.2 2001 967.5 45.2 1,012.7

6.7% 9.1%

6.8% 9.4%

6.2% 8.6%

4.9% 7.8%

3.6% 7.2%

3.0% 6.3%

3.2% 5.9%

3.0% 5.2%

2.0% 4.9%

4.5% 5.3%

226.6 236.8 111.4 88.8 47.2 27.5 31.5 22.4 5.1 797.3

237.9 231.7 112.2 87.9 45.5 26.3 31.5 23.6 5.4 802.0

245.1 226.0 114.3 88.3 46.0 26.5 30.0 23.8 5.1 805.1

265.3 231.2 117.4 87.8 48.7 28.8 28.7 24.0 4.5 836.4

283.9 245.9 122.2 87.4 52.4 32.8 30.0 25.4 5.1 885.1

301.8 258.2 126.7 88.5 56.0 37.4 30.6 27.2 5.1 931.5

317.8 261.3 130.1 88.9 56.4 41.8 31.8 28.3 5.2 961.6

332.9 250.7 134.0 91.4 56.0 45.6 32.3 28.3 5.3 976.5

366.4 261.9 140.8 94.5 55.5 49.2 32.3 29.4 5.0 1,035.0

362.3 254.0 140.2 94.6 52.6 49.2 33.4 30.2 4.5 1,021.0

Source: California Department of Employment Development * Labor force data are based upon place of residence. Employment includes self-employed, unpaid family workers, domestics, and workers involved in labormanagement disputes. ** Wages and salary employment is reported by place of work.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ APPENDIX E PROJECTS CLOSED OR SCOPE REDUCED BY THE CAPITAL IMPROVEMENT PROGRAM OVERSIGHT COMMITTEE (CIPOC)
In $000's Paratransit Vans ADA Passenger Access ADA Line 22 Improvements Bus Wash Replacement Cerone Division Rehab & Expansion Bus Facility Expansion Caltrain Capital Contribution Caltrain Capital Contribution Telephone System Replacement Customer Sevice Telephone PHRED VTAIIS Timekeeping System Disaster Recovery Project Automated Trip Planning System Guadalupe Corrdiro Fiberoptics Transit Facilities CCTV Demonstration Project Enhance Database Monitoring and Performance Server Consolidation ISG Computer Hardware and Software Business warehouse Hardware Upgrade- Phase 1 Business warehouse Hardware Upgrade- Phase 2 BDT System Infrastructure Upgrade ISG Help Desk Phone System Business Warehouse Reporting Tools Internet Application Server Internet Development Suite LAN Upgrade Info Systems EV Charging Stations Non-Revenue Vehicle Replacement - 14 vehicles Replacement NRV 14 Non-Revenue Vehicles (38) Non-Revenue Vehicles & Facilities Tasman Station Crossovers First & Tasman Girder Rail Rep Chaboya Bus Wash Upgrade Transmission Rebuild Equipment Fuel Gantry System CAMM Monorail Hoist Installation Chaboya H2O Soft Replacement Guadalupe TVM Replacement LRT Power Sectioinalization Track Lubrication Equipment Transfer Trip Cable Substation Overvolt Protection Standardized Turnout Test Turnout Standard Modification Embedded Curve Original Budget VTA Non-VTA Total 750 $ 880 $ 1,630 762 762 1,512 880 2,392 7,808 790 8,598 14 14 25,171 11,990 37,161 32,993 12,780 45,773 5,734 5,734 5,734 5,734 363 363 135 135 150 150 20,897 20,897 500 500 80 80 100 100 8,000 8,000 486 486 200 200 1,780 1,780 114 114 230 230 475 475 500 500 80 80 150 150 40 40 300 300 300 300 34,880 34,880 217 217 435 435 908 908 952 952 2,512 2,512 160 640 800 900 900 1,800 768 768 15 15 143 143 131 131 48 48 740 6,660 7,400 2,120 1,200 3,320 25 25 47 47 35 35 40 40 100 100 190 190 Total CIPOC Savings VTA Non-VTA Total $ (538) $ (48) $ (586) (762) (762) (1,300) (48) (1,348) (5,000) (5,000) (11,484) (11,484) (16,484) (16,484) (1) (1) (1) (1) (88) (88) (19) (19) (42) (42) (1,357) (1,357) (14) (14) (80) (80) (100) (100) (672) (672) (186) (186) (200) (200) (39) (39) (114) (114) (80) (80) (48) (48) (192) (192) (66) (66) (150) (150) (40) (40) (300) (300) (77) (77) (3,864) (3,864) (27) (27) (3) (3) (11) (11) (320) (320) (361) (361) (31) (150) (181) (72) (88) (160) (69) (69) (15) (15) (130) (130) (62) (62) (48) (48) (144) (2,616) (2,760) (177) (177) (9) (9) (30) (30) (33) (33) (36) (36) (100) (100) -

$

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VTA FY 2002-03 BUDGET

______________________________________________________________________________
In $000's Escalator Oil Separator Santa Teresa Spur Track Rail Replacement Program Rail Profile Digitizer Electronic Controls for TAMP Orchard Parkway Crossing Modication LRT Substation Upgrade Minor Equipment Scheduled Maintenance Equipment Replacement Money Room Token System LR Maint Compressor Replace & Relocate LRT Southline Settling Adjustments VETAG Modification LRV Destination Sign Replacement Facilities & Equip Emergency Repair Allowance New Minor Equipment LRV Flange Lubricators Scheduled Maint Equip Replacement Eddy Current High Perf Load Unit Upgrade Maint Shop Equipment Expansion Program Trolley Barn Mill Replacement Operating Equipment LRV Paint Booth Upgrade Pavement Management Program Cerone Ops Quiet Room Cerone and O&R Remodel Chaboya Maintenancce Class Room LR Seismic Retrofit Passenger Facilities VTA Signage Program Extreme Lighting Upgrade RT87 Detour Facility Modification BLDG A Improvements Minor Remodeling LRT Structure Repairs Cerone Buried Pipe Evaluation Hose Reel Assembly Relocation at Cerone Cerone O&R Minor Reconfiguration Facilities & Equipment Repair Allowance VTA Facilities Master Plan Roofing Management Program Painting Management Program Pavement Management Program FY 01 Painting Program FY 01 Roofing Program FY 01 Paving Management Program Chaboya Training Room Mod Storm Drain Repair Component Room Arrestor Grinding Booth Bus Alternate Fuel Facility Modification Study Chaboya Fuel Island Ventilation Guadalupe Shop Lighting Upgrade Chaboya Fuel Island Breakroom & Foreperson's LRT Drainage Improvements at Bayshore/Manila Operating Facilities VTA Original Budget Non-VTA Total 10 10 33 33 400 400 23 23 35 35 871 871 350 350 700 109 109 166 166 133 133 3 3 50 50 60 60 2,163 2,163 106 106 262 262 175 175 80 80 35 35 65 65 30 30 10,622 9,752 20,371 420 420 464 464 40 40 264 264 276 276 1,703 222 1,925 2,721 2,721 4,473 4,473 1,761 1,761 180 180 1,904 1,904 34 34 327 327 57 57 144 144 11 11 283 283 515 515 78 78 630 630 400 400 873 873 228 228 1,284 1,284 34 34 27 27 60 60 81 81 50 50 75 75 85 85 401 401 19,883 222 20,105 Total CIPOC Savings VTA Non-VTA Total (10) (10) (33) (33) (83) (83) (23) (23) (35) (35) (871) (871) (4) (4) (8) (42) (42) (8) (8) (3) (3) (50) (50) (60) (60) (2,163) (2,163) (106) (106) (47) (47) (175) (175) (10) (10) (3) (3) (7) (7) (4,689) (2,858) (7,547) (6) (6) (6) (6) (40) (40) (2) (2) (146) (146) 2 2 (1,250) (1,250) (1,155) (1,155) (24) (24) (199) (199) (31) (31) (24) (24) (57) (57) (24) (24) (283) (283) (39) (39) (66) (66) (291) (291) (391) (391) (130) (130) (8) (8) (1,019) (1,019) (34) (34) (5) (5) (34) (34) (36) (36) (47) (47) (299) (299) (5,644) (5,644)

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VTA FY 2002-03 BUDGET

______________________________________________________________________________
In $000's North Yard Plume Cost San Carlos Site Cleanup BLDG A Storage Cages Cerone Wetlands Replacement OHL CHYN Joint Development (joined with P0158) Office Furniture Environmental Efficiency Program Joint Development Ohlone P&R Common Area (goto P0110) Carpool Lane Program Property Asset Management Office Furniture Traffic Authority Utilities 237/I880 Fiscal Resources Workspace Reconfigurations Check Stuffing Machine Office Furniture Paper Shredder/Pilot Program 1987 Safe Harbor & 1998 US Leveraged Lease Cafeteria Equipment Replacement Office Furniture Rail Systems Design Consultant Services Other Great America Elevator San Antonio-24TH ST Eastridge Road Access LRT Shelter & Windscreen Retrofit San Jose Transit Mall Key Rail Station Retrofit Guadalupe Corridor Station Retrofit LR Station Plumbing Improvements LRT Elevator Floor Replacement Tamien Elevator Glass Palo Alto Depot Restoration LRT Elevator Door Sensor Retrofit West Valley College Transit Center San Martin P&R Expansion Gilroy Caltrain Station Moffet Park Station (Jay Paul Co) Morgan Hill Transit Center CCTV City of Gilroy - Monterey Streetscape Imprv't Great America Station Improvements Light Rail Shelter & Windscreen Retrofit-Phase 2 Passenger Facilities Guadalupe Corridor LRT System Study 2000 Measure A Program Development Activities Rail Transit Vehicle Consultant Rail Expansion Replacement Buses (45) Annunciation/Signs LRV Door Modifications VTA 671 905 97 276 374 914 1,099 100 116 45 205 263 610 12 460 15 12,000 13 357 5,000 23,532 261 198 463 604 369 167 1,723 95 8 40 10 22 2,037 263 2,752 40 300 3,401 12,753 764 133 405 125 1,427 2,643 717 265 Original Budget Non-VTA Total 671 905 97 276 273 647 914 1,099 100 100 216 375 420 205 263 35 35 610 12 460 15 12,000 13 357 5,000 783 24,315 261 122 320 463 1,012 1,616 369 167 1,173 2,896 95 8 40 10 22 2,037 263 2,200 4,952 237 237 40 100 100 300 3,401 4,844 17,597 764 133 405 625 750 625 2,052 9,719 12,362 551 1,268 265 Total CIPOC Savings VTA Non-VTA Total (643) (643) (247) (247) (14) (14) (249) (249) (7) (7) (2) (2) (909) (909) (91) (91) (45) (45) (205) (205) (34) (34) (8) (8) (91) (91) (3) (3) (60) (60) (1) (1) (11,960) (11,960) (9) (9) (123) (123) (4,898) (4,898) (19,591) (8) (19,599) (155) (155) 1 3 4 (84) (84) (88) (17) (105) (369) (369) (44) (44) (55) (1) (56) (8) (8) (14) (14) (10) (10) (7) (7) (129) (129) (71) (71) (769) (18) (787) (79) (79) (36) (36) (16) (16) (4,899) (4,899) (6,737) (128) (6,865) (69) (69) (61) (61) (125) (625) (750) (255) (625) (880) (315) (315) (10) (60) (70) (254) (254)

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VTA FY 2002-03 BUDGET

______________________________________________________________________________
Original Budget In $000's VTA LRV Door Control Modifications 35 Yield to Bus Sign 350 33 Replacement & 11 (formerly 25) Expansion Buses 10,700 Revenue Vehicles & Equipment 14,711 Ohlone-Chynoweth Joint Development Study 94 P & R Development Plan 100 Evergreen Downtown Corridor 680 Line 22 Corridor Plan 50 Caltarin Service Study 50 San Carlos Station Concepts 50 Diridon Station Area Planning 25 TOD Rail Station Area Plans 100 Downtown San Jose LRT Alignment Planning Study 231 Studies & Planning 1,380 Total $ 161,939 Non-VTA 9,740 20,012 $ 49,898 Total 35 350 20,440 34,720 94 100 680 50 50 50 25 100 231 1,380 $ 211,831 Total CIPOC Savings VTA Non-VTA Total (35) (35) (71) (71) (10,701) (9,740) (20,441) (11,386) (9,800) (21,186) (44) (44) (31) (31) (64) (64) (50) (50) (50) (50) (25) (25) (100) (100) (3) (3) (367) (367) $ (70,679) $ (13,467) $ (84,146)

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ APPENDIX F SANTA CLARA VALLEY TRANSPORTATION AUTHORITY FY 2002-2003 CAPITAL BUDGET SUMMARY
Approved Recommended Recommended Project Projects & Project Budgets Modifications Budgets NEW PROJECTS $ $ 1,083 $ 1,083 Estimated Total Reimbursements Projected Total Net VTA Project Costs

In $000's

Non-Revenue Vehicle Fleet Procurement Program Operating Equipment River Oaks HVAC Scheduled Unit Replacement T-Signal Retrofit Facilities & Equipment Emergency Repair Allowance Maintenance Shop Equipment Replacement Program Total Operating Equipment Operating Facilities Chaboya Maintenance Bay Pit Modifications Rail Maint Engineering Office & ISG Disaster Recov Rm Chaboya Restrooms Rehabilitation Pavement Management Program Roofing Management Program Painting Management Program Total Operating Facilities Other Office Furniture Modifications & Reconfigurations Total Other Total New Projects

$

-

$

1,083

-

246 250 300 315 1,111

246 250 300 315 1,111

-

246 250 300 315 1,111

-

551 239 448 487 299 350 2,374

551 239 448 487 299 350 2,374

-

551 239 448 487 299 350 2,374

$ $

100 100 4,668 $

100 100 4,668 $

$

100 100 4,668

AUGMENTED PROJECTS Passenger Facilities Palo Alto Depot Renovation Total Passenger Facilities Rail Facility Expansion Downtown/East Valley Conceptual Design Total Rail Facility Expansion Total Augmented Projects $ $ 1,060 1,060 $ 537 537 $ 1,597 1,597 $ (1,211) $ (1,211) 386 386

7,430 7,430 8,490 $

2,311 2,311 2,848 $

9,741 9,741 11,338 $

(9,741) (9,741) (10,952) $

386

CARRYOVER PROJECTS ADA ADA Pass Access & Sign Pro ADA Platforms & Signs Total ADA Bus Facility Expansion North Yard Reconstruction Line 22 Improvements Bus Facilities Expansion Cerone Division Rehab & Expansion Total Bus Facility Expansion Info. Systems, Communications & Technology Radio Communications System Records Archival & Retrieval Transit Facilities CCTV Demonstration Project Enhance Database Integrity $ 2,730 1,900 4,630 $ $ 2,730 1,900 4,630 $ (1,447) $ (1,480) (2,927) 1,283 420 1,703

37,267 3,599 15,451 25,677 81,994

-

37,267 3,599 15,451 25,677 81,994

(20,232) (790) (8,400) (29,422)

17,035 2,809 15,451 17,277 52,572

19,545 288 300 30

-

19,545 288 300 30

(12,202) -

7,343 288 300 30

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VTA FY 2002-03 BUDGET

______________________________________________________________________________
Approved Recommended Recommended Project Projects & Project Budgets Modifications Budgets 800 800 150 150 14 14 152 152 100 100 8,050 8,050 350 350 70 70 50 50 150 150 150 150 90 90 223 223 189 189 30,701 30,701 4,012 4,012 Estimated Total Reimbursements (12,202) (209) Projected Total Net VTA Project Costs 800 150 14 152 100 8,050 350 70 50 150 150 90 223 189 18,499 3,803

In $000's Electronic Scheduling & Run-cutting Software Business warehouse Hardware Upgrade- Phase 1 ISG Help Desk Phone System Communications Recording System BDT Operator Card Swipe System PCST Project Business Warehouse Data Extraction Tools Exchange Mail Server Internet Development Suite IVR Phone System Replacement River Oaks Telephone System Replacement Voice Mail System Replacement LAN Upgrade FY01 Equipment Purchases Total Info. Sys., Comm., & Technology Non-Revenue Vehicles Operating Equipment Parts Carousel LRT Signal Priority Retofit MOW Multi-Purpose Vehicle Rail Rehabilitation Project Overhead Safety Restraint at Cerone Minor Maint Color Printer Facilities & Equipment Emergency Repair Allowance Scheduled Maintenance Equipment Replacement Woz Way Portable Crossover River Oaks HVAC Replacement Generator Replacement Parts Carousel at North Division Chaboya Transformer Replacement Total Operating Equipment Operating Facilities Operator Facilities VTA Signage Program Card Readers at Operating Divisions ACE Track Improvements Eastridge Transit Center Modifications Chaboya Maintenance Training Firewall Bus Stop Duckout & Pavement Restoration Program Guadalupe Automatic Fire Supression Guadalupe Vehicle Wash Modifications LRT Drainage Improvements at Bayshore/Manila Painting Management Program Pavement Management Program Roofing Management Program Emergency Operations Center HazMat Removal Total Operating Facilities Passenger Facilities Mountain View Transit Center Palo Alto Caltran Transit Center Elevator Floor Replacement Monterey Highway Bus Stop

650 300 225 2,700 70 50 180 410 272 60 60 100 100 5,177

-

650 300 225 2,700 70 50 180 410 272 60 60 100 100 5,177

(2,000) (2,000)

650 300 225 700 70 50 180 410 272 60 60 100 100 3,177

675 3,223 517 610 290 164 810 70 744 100 388 1,099 100 110 160 9,060

-

675 3,223 517 610 290 164 810 70 744 100 388 1,099 100 110 160 9,060

-

675 3,223 517 610 290 164 810 70 744 100 388 1,099 100 110 160 9,060

6,250 2,542 560 3,909

-

6,250 2,542 560 3,909

(5,400) (2,162) (443)

850 380 560 3,466

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VTA FY 2002-03 BUDGET

______________________________________________________________________________
Approved Recommended Recommended Project Projects & Project Budgets Modifications Budgets 881 881 38,409 38,409 3,767 3,767 205 205 111 111 56,634 56,634 Estimated Total Reimbursements (780) (8,785) Projected Total Net VTA Project Costs 101 38,409 3,767 205 111 47,849

In $000's I-880 Smart Park Guadalupe Corr. Platform Retrofit - Phase 2 De Anza College Transit Center Guadalupe Escalator Retrofit VETAG Total Passenger Facilities Rail Facility Expansion Tasman West LR Facility Expansion Guadalupe Corridor Right-Of-Way Disposition Silicon Valley Rapid Transit Corridor Metro LRT Station Reconstruction Newhall/BART Maintenance Facility Total Rail Facility Expansion Revenue Vehicles & Equipment Replacement Coaches 49 Articulated Coaches 40 Replacement Coaches 40 Cameras on Transit Vans Bus Farebox Replacement Revenue Vehicles (17 Repl + 15 Expn) Clean Diesel Engine Bus Fleet Procurement - 52 buses Emissions Retrofit of Bus Diesel Engines MTC Regional Express Bus Procurement Zero-Emission Buses (ZEB) Demonstration Project 70 Low Floor LR Vehicles Total Revenue Vehicles & Equipment Other San Carlos Remediation Construction Claims Support Office Furniture Rail Systems Design Consultant Services Surveying GPS System Check Stuffing Machine General Manager Office Reconfiguration Total Other Total Carryover Projects Total Capital Projects $ $

333,656 36,325 652 45,000 350 55 416,038

-

333,656 36,325 652 45,000 350 55 416,038

(316,758) (16,090) (45,000) (350) (378,198)

16,898 20,235 652 55 37,840

17,232 22,110 14,204 4,341 100 13,592 3,640 19,623 3,829 5,345 18,450 202,201 324,667

-

17,232 22,110 14,204 4,341 100 13,592 3,640 19,623 3,829 5,345 18,450 202,201 324,667

(12,618) (18,691) (11,449) (4,626) (1,820) (10,610) (4,989) (18,450) (202,202) (285,455)

4,614 3,419 2,755 4,341 100 8,966 1,820 9,013 3,829 356 (1) 39,212

55 2,919 234 100 104 18 71 3,501 936,414 944,904 $ $

7,516 $ $

55 2,919 234 100 104 18 71 3,501 936,414 952,420 $ $

(719,198) $ (730,150) $

55 2,919 234 100 104 18 71 3,501 217,216 222,270

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ APPENDIX G Santa Clara Valley Transportation Authority FY 2002-2003 Budget Purchase of Non-Revenue Vehicles (NRV’s)
SUMMARY - REPLACEMENT AND ADDITIONAL Type Quantity Passenger Vehicles 23 Heavy-Duty & Specialized 11 Total 34 REPLACEMENTS Passenger Vehicles: Sedans 10 Full Cargo Vans 2 Mini-Cargo Vans 2 Mini-Passenger Vans 4 Activans 5 Total 23 Heavy-Duty & Specialized Vehicles: Pass Facilities Maintenance Truck Yard/Road Call Truck Mid-size Truck UT w/Crane 11-15 GVW Sweeper Truck RAV4 EV Lease Renewal Total Total Replacements ADDITIONS Heavy-Duty & Specialized Vehicles: Pass Facilities Maintenance Truck 33,000 GVW High Rail Platform Truck 3/4-ton Diesel Utility Truck Tilt Trailer Total Additions VEHICLES Cost $ 547,300 536,000 $ 1,083,300

$

190,000 48,300 41,000 93,000 175,000 547,300

1 1 1 1 3 7 30 $

44,000 65,000 75,000 50,000 39,000 273,000 820,300

1 $ 1 1 1 4 $

44,000 172,000 40,000 7,000 263,000

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ APPENDIX H
SANTA CLARA VALLEY TRANSPORTATION AUTHORITY VTA/ATU Pension Plan Fiscal Year 2002-2003 Expenditure Plan (In $000's) FY 2000-01 Actual REVENUES VTA Employer Contribution One-Time Contribution Interest Income Net Appreciation (Depreciation) on Investments Total Revenues EXPENSES Operating Expenses Pension Payments to Retirees Medical/Psychiatric Evaluations Administrative Expenses Total Operating Expenses Contingencies Total Expenses Net Increase in Plan Assets * Beginning Fund Balance Ending Fund Balance $ $ 7,349 4,756 15,257 27,362 FY 2001-02 FY 2002-03 Expenditure Expenditure Plan Plan $ 8,111 16,560 24,671 $ 11,253 16,500 27,753

6,686 936 7,622 7,622 19,740 $ $ $

7,415 48 725 8,188 5 8,193 16,478 207,691 224,169 $ $ $

8,333 54 975 9,362 5 9,367 18,386 224,169 242,555

$ 187,952 $ 207,691

* As of January 1, 2002, the plan has an unfunded liability for prior service of $53 million.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ APPENDIX I Santa Clara Valley Transportation Authority Fee Schedules FY 2002-03 PROPOSED BASIC FARE STRUCTURE FOR BUS, LIGHT RAIL AND PARATRANSIT SERVICES Fare Category Adult: Single Ride Day Pass 10 Tokens Monthly Pass Annual Pass Youth: Single Ride Day Pass 10 Tokens Monthly Pass Annual Pass Senior/Disabled: Single Ride Day Pass Monthly Pass Annual Pass Express: Single Ride Day Pass Monthly Pass Annual Pass Paratransit: One-Way Trip Companion - One-Way Trip Personal Care Attendant Open Return Trip No Show Charge Second Vehicle Service (No Show Return Trip) Same-Day Service $1.40 $4.00 $10.00 $45.00 $495.00 $0.85 $2.50 $5.50 $27.00 $297.00 $0.45 $1.25 $11.00 $121.00 $2.25 $6.00 $72.00 $792.00 $2.80 $2.80 No Charge $4.70 $2.80 $12.00 $10.00 Fare

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ ECO PASS PRICING – These prices are based on the number of employees and the level of VTA service at a given work site. Eco passes are purchased for all full-time, permanent employees at one discounted price per employee. These prices are prorated if an employer joins the program mid -year. The minimum annual contract for Eco Pass is $1,150. Employer Location/ Service Level Downtown San Jose Areas Served by Bus & LRT Areas Served by Bus Only 1 to 99 $92.00 $69.00 $46.00 Number of Employees 100 to 2,999 3,000 to 14,999 $69.00 $46.00 $46.00 $23.00 $23.00 $11.50 15,000+ $23.00 $11.50 $5.75

There two additional service options: Option I – Dumbarton and Highway 17 Express Employer Location/ Service Level Downtown San Jose Areas Served by Bus & LRT Areas Served by Bus Only Number of Employees 100 to 2,999 3,000 to 14,999 $80.50 $55.20 $57.50 $32.20 $34.50 $20.70

1 to 99 $105.80 $82.80 $59.80

15,000+ $28.75 $17.25 $11.50

Option II – Caltrain Eco Pass Pilot Program, Dumbarton and Highway 17 Express. The minimum annual contract for Caltrain Eco Pass Program is $3,275. Employer Location/ Service Level Downtown San Jose Areas Served by Bus & LRT Areas Served by Bus Only 1 to 99 $177.00 $154.00 $131.00 Number of Employees 100 to 2,999 3,000 to 14,999 $114.00 $71.00 $91.00 $48.00 $68.00 $36.50 15,000+ $43.00 $31.50 $25.75

RESIDENTIAL PASS PRICING – These prices are based on the number of residents and the level of VTA 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. A community must have a minimum of 25 units. Community Location/ Service Level Downtown San Jose Areas Served by Bus & LRT Areas Served by Bus Only 1 to 99 $92.00 $69.00 $46.00 Number of Residents 100 to 2,999 3,000 to 14,999 $69.00 $46.00 $46.00 $23.00 $23.00 $11.50 15,000+ $23.00 $11.50 $5.75

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ Communities can “upgrade” their Eco Pass to include Highway 17 and Dumbarton Express service. The additional service option must be purchased for all residents at the community. Community Location/ Service Level Downtown San Jose Areas Served by Bus & LRT Areas Served by Bus Only 1 to 99 $105.80 $82.80 $59.80 Number of Residents 100 to 2,999 3,000 to 14,999 $80.50 $55.20 $57.50 $32.20 $34.50 $20.70 15,000+ $28.75 $17.25 $11.50

RATES FOR PLAN SHEETS, BID SHEETS AND SPECIFICATIONS (Consistent with standard practice, this concerns the sale of documents and records to individuals and contractors who have projects that impact VTA) Sale of Plan Sheets Sale of Bid Plans/Specifications $10.00 Per Sheet $2.00 Per Item

PERMIT FEE SCHEDULE (To protect VTA properties and facilities when construction activities are performed on VTA properties and facilities by outside parties) Permit Application Fee (Minimum fee charged for all permit applications processed. Additional fees may be assessed.) Light Rail Crossings – Plan Check and Inspection: Directional Bore Method Bore and Jack Method Bus and Transit Facility – Plan Check and Inspection: New P.C.C. Bus Pad New P.C.C. Shelter Pad Material Lab Fee (If VTA provides service) Standard P.C.C. Bus Pad (10 ft. by 50 ft.) includes: 1) Sub Base Compaction Tests 2) Material Analysis 3) Base Rock Compaction Tests and Material Analysis 4) 3 Concrete Cylinders or 2 Beams Asphalt Testing per Location includes compaction test and material analysis (All retests for failed compaction billed non-refundable $255.00

per crossing per crossing

$545.00 $805.00

per pad per site

$515.00 $280.00 $1,200.00

$450.00

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ to contractor at $75.00 per hour for lab related labor cost.) Other Construction Project Fees (including sidewalk removal or replacement, curb and gutter removal or replacement, trenching, … etc.) All additional costs for labor and materials beyond that required above will be assessed based on site/scope specific requirements. Type rates as follow: Engineering Fees Construction Inspector Fees Office Administrative Support

$55.00 $49.00 $29.00

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ 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. ADA Americans with Disabilities Act. Federal civil rights legislation that, among other things, gives disabled persons the right to equal access to fixed route transit service or to comparable paratransit service if they are unable to use fixed route transit. Adopted Budget The official budget that has been adopted by VTA Board of Directors. Appropriation Legal authorization expressed by budget unit, fund, and cost group granted by the Board to make expenditures and to incur obligations for specific purposes. Operating appropriations are time period limited and must be expended or encumbered 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 the bus turns a corner. BAAQMD Bay Area Air Quality Management District. Commonly referred to as the “air district,” this agency regulates industry and employers to keep air pollution in check, 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 capital equipment items or for capital projects. The capital budget includes funds for 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) and projected useful life (greater than one year).

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ Capital Project Expenditure for tangible long-lived assets, such as property and equipment used by VTA 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 VTA uses the following expenditure and cost-reduction cost groups such as labor costs, non-labor costs, Caltrain contribution, ADA, ACE, 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-subsidy 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 VTA’s borrowed funds. Division An organizational entity consists of cost centers. Enterprise Fund A distinct fiscal entity whose resources are dedicated to a specific purpose, and in which all resources and expenditures must balance. Expenditure appropriations 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. VTA’s fiscal year is July 1 through June 30. FTA Federal Transit Administration, formerly the Urban Mass Transportation Administration (UMTA). FTA provides capital and operating funds to VTA. 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 with specific limitations.
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VTA FY 2002-03 BUDGET

______________________________________________________________________________ Grants A contribution by a government or other organization to support a particular function. Grants may be classified as either operational or capital, depending upon the grantee. MTC Metropolitan Transportation Commission. MTC is recognized by the state as the Regional Transportation Planning Agency (RTPA) and by the federal government as the Metropolitan Planning Organization (MPO) 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, including Santa Clara County, two commissioners are appointed – one by the county board 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 MTC, to total 16, represent the Association of Bay Area Governments (ABAG) and the San Francisco Bay Conservation and Development Commission (BCDC). In addition, there are three non-voting members on MTC, representing the state’s Business, Transportation & 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 operating budget does not include capital or reserves. Paratransit Comparable transportation service required by the Americans with Disabilities Act (ADA) of 1990 for individuals with disabilities who are unable to use fixed-route transportation systems. Reserves Amount of funding held back in order to meet probable or possible demands. SRTP Short-Range Transportation Plan. A document that catalogues operating statistics for the transit system and projects future improvements that are scheduled over a ten-year time frame. The document includes capital and operating budgets. STA State Transit Assistance. Half of the revenues annually budgeted through the state budget process for the Transportation Planning & Development Account (TP&D) are appropriated to the STA Program. Funds are used for mass transit operations, transit coordination projects, and transportation planning. These funds are apportioned to the regional transportation planning agencies according to a formula based on population and annual transit operator revenues.

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VTA FY 2002-03 BUDGET

______________________________________________________________________________ TDA 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 program for public transportation purposes. TDA sales tax revenues are apportioned by the state, through the regional transportation planning organizations, to each participating county based on the amount collected within that county.

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