AC Transit Annual Report 1984-1985

8/14/2019 AC Transit Annual Report 1984-1985

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Annual Report 1985

Alameda-Contra Costa Transit District


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Alameda-Contra CostaTransit District

Annual Report 1985


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Alameda-Contra Costa Transit District 1985

Dedication of ACTransit's CentraLMaintenanceCenter,October 19, 1984

Mayor Leon Mez-zetti, Fremont; ACBoard VP LindaShepard; MayorDave Smith, New-ark ; and DirectorRay Rinehart at10 year celebra-tion of ocal busservice

GroundbreakingJor new GeneralOffice buildinglocated at 1600Franklin Street,Aprilll , 1985.The project isscheduled fo rcompletion inFall 1986.


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Introduction ofbicycle-busproject; testingbike racksmounted on thefronts of busesserving Line Tbetween Alamedaand downtownOakland

Award winningcampaign to protect mass transitfunding


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4

708 buses handlethe morning com-mute each day.

In Fiscal Year 1985, AC Transit undertook major internal reorganizationaimed at increasing productivity with particular emphasis on theimprovement of on-street service topatrons and the refinement of operational structures which providethe service. Restructuring of majoroperational units enabled the District to end the fiscal year with anappreciably more streamlined andefficient system.

One key change in the reorganization of the operating divisionswas the creation of general superintendent positions with full responsibility for all activities, functionalunits, and transit service emanatingfrom each facility. In addition to providing bus service and performingroutine coach servicing and repair(activities traditionally separatedinto "transportation" and "maintenance" functions), each generalsuperintendent is now responsiblefor, and has the necessary authorityand resources to accomplish, alldivision operational and supportactivities, from stocking pockettimetables to conducting community relations outreach programs.

Other operations functionswere realigned to improve supportrequired by the divisions . The Operations Center was establishedto consolidate scheduling androad-supervision of buses, andthe Telephone Information Center

1,450 AC driverstransport passen-gers throughoutthe East Bay.1,200 AC driversare at workon any givenweekday.

necessary to ensure service forpassengers. I n addition, a ne wOperations Programming and Analysis Department was established tomonitor and assess all operationalfunctions, and to plan programs thatwill improve the performance ofthese functions.

In this revised structure, majorbus repair takes place at the new$21 million Central MaintenanceCenter located in East Oaklandofficially opened this year to perform all heavy bus maintenance, toremanufacture major bus components, to diagnose and repair drivetrains, chassis, brake systems, andthe various electronic systems andcomponents installed in the revenue vehicle fleet. Through this neworganization, the operating divisionsare free to focus their attention onpreventive maintenance, routineservicing, and cleaning of buses.

With the newly-establishedsupport units and realigned, redefined functional areas, Operationsended the fiscal year in an improvedposition , enabling the provision ofmore productive on-street services.


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Operations

42% of weekdayriders travel toand from employ-ment centers.

A major program of route andschedule refinements went intoeffect in September, 1984, financedin part by an agreement with the BayArea Rapid Transit District (BART)which funded improvements in localEast Bay bus routes that also serveas effective intersystem connectorsat the rail stations. This wheels-railspact followed successful efforts ofan ad hoc committee of AC Transitand BART directors dedicated toforging mutually-acceptable policythat could result in added servicelinkages.

In the initial year of the agreement, BART contracted for morethan $10 million worth of bus service : $7 million fo r express busextensions into suburban communities outside AC Transit's servicearea; $3 million for new metropolitan feeder routes and continuationof night and weekend service otherwise earmarked for curtailment.Concurrently, the two agencies introduced a simplifiedintersystem transfer

AC operates 6transbay, 10/local/intercity,and 8 contractservice routes.During commutehours, serviceexpallds to 171routes, including47 trailsbay.

easy, economical trips using bothsystems- particularly during noncommute periods.

In November, 1984, the cities ofFremont and Newark in southernAlameda County observed the 10thanniversary of local bus service intheir area. During that decade, morethan 20 million riders were servedby buses linking neighborhood toneighborhood-providing tripsbetween the tw o suburban communities as well as to both localtraffic centers and to mainline ACTransit bus routes serving otherEast Bay cities.

Also, the District's operationalstaff - .1!!!

joined the East Bay Bicycle Coalitionin introducing a new bicycle-busproject- working with the California Highway Patrol (CHP) to test abike rack mounted on the front ofbuses. An independent testing laboratory assured the District (and theCH P) that the prototype rack offeredno interference with bus headlampsystems and driver vision. Withissuance of a special one-yearexperimental permit from the CHP,the bike racks became a regular fixture on Line T buses for testing inservice between Alameda anddowntown Oakland.


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While visiting AC Transit this year,the Urban Mass TransportationAdministration's (UMTA) deputyadministrator (who participated inthe official opening of the CentralMaintenance Center) announcedthat $37.7 million in federal assistance would be forthcoming tosupport the District's facilitiesimprovement program. Two-thirdsof the grant sum is for rehabilitation of aged operating facilities inEmeryville and East Oakland, withanother segment funding a newoperating yard in Hayward whichwill absorb the activities currentlyconducted in a smaller division inNewark .

254 ,000 pas-sengers boardACbuses eachweekday.

The system-wide $100-million facilities program also includes reconstruction of the Richmond Divisionand establ ishment of a new Trainingand Education Center at the Hayward site. AC Transit, joining othersystems in congratulating UMTA onthe occasion of its 20th anniversary(November, 1984), noted that federal aid over two decades had provided the system with some $228million, both for the much-neededfacilities program and for the purchase of more than 900 new busesto serve East Bay riders.

This fiscal year, AC Transit alsocompleted groundwork for a noveldeveloper-financed project makingpossible, without direct use of public funds, the construction of newadministrative offices in downtownOakland . Groundbreaking at thesite, 1600 Franklin Street (on landpreviously purchased by the District), took place in April, 1985, signalling construction of a $14 million,ten-story structure that will houseexecutive offices, the expandedOperations Center, and most administrative and support functions. Thepublic will also benefit from thesenew, more efficient facilities atwhich they can purchase passesand tickets, apply for discount identification cards, and use lost-andfound services .

29 cities and 10unincorporatedcommunities insuburbanAlamedaand Contra CostaCounties areserviced by ACTransit, and itscontract service.

While this new facility was madepossible by private sector funds, theinnovative financing package includes a lease-purchase arrangement that will eventually createpublic ownership of the building .Participants in this package includeStolte Inc.l Force Ltd. (a joint ventureinvolving full-equity partnershipbetween a veteran Oakland-baseddevelopment firm and a newOakland-based, Black-owned development corporation); the Jim Ishimaru Design Group; and UnionBank, through which financing wasarranged. It is anticipated that ACTransit will move into these newoffices (located just two blocks fromits current, over-crowded quartersin the aged Latham Square Building)in late 1986.


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Future Operations

School aged pas-sengers comprise26% of weekdayridership.

AC Transit's planning programswere expanded this year to encompass detailed assessment of majorcorridors within and adjacent to theDistrict's service area, and to formulate a long-range "Comprehensive Plan" study process aimed atcharting the service route structurenecessary to meet transit needsthrough the year 2000. The corridorassessment study will evaluatepotential travel patterns, projectedtrends in employment and residential growth, and anticipated traveldemand within Alameda and ContraCosta counties through the end ofthe 20th Century. Information garnered will be pivotal to the development of an effic ient routenetwork for turn-of-the-Centurytransit service.

FundingWhile continuing the search fo rfunding to support bus operations,AC Transit also devoted energiesthis fiscal year to countering anadded complication - a ReaganAdministration proposal to eliminate Federal operating assistance.Though AC Transit anticipated monies amounting to less than 10 percent of the operating budget fromthis source, sudden elimination ofthese dollars (after some two dec-

77% ofAC week-day riders (85%ofweekend riders)do not have carsavailable forimmediate needs.

ades of national partnership in funding mass transit operations) wouldhave sorely weakened the District.

In conjunction with other segments of the transit industry - bothhere in the Bay Area and from acrossthe country - AC Transit moved tocounter the federal administration'sproposal by communicatingclearly to the citizens ofthe District and to Congress, its vividly urgentconcerns aboutpotent ia lsequences.

The result: a responsive Congresscontinued aid to AC Transit and tomany other segments of the nation's transportation infrastructureinto the coming fiscal period .


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8 Interagency LinksThe Bay Area's newest transbaybus link - Line DB-Palo Alto-UnionCity - went into service in September, 1984, linking East Bay transitsystems and networks with thehigh-tech employment centers ofnorthern Santa Clara County.Funded as a one-year demonstration project, Line DB operates fromBART /Union City station across theDumbarton Bridge to make connections with SamTrans (in San MateoCounty), Santa Clara County Transit,and the state-operated PeninsulaCALTRAIN rail service.

AC MaintenanceCenter overhauls3 engines, 8 trans-missions, and upto JJ buses (bodywork, upholstery,or chassis repair)each week.

This year, AC Transit also led theeffort to continue the so-called"Martinez Link" bus service connecting the western portion of Contra Costa County with its centralcore. This route, begun during thelast fiscal year by BART was administered by AC Transit beginning inSeptember, 1984, for a second yearof demonstration operation. TheDistrict succeeded in increasingridership significantly, demonstrating the need for bus service fromwestern Contra Costa to the countyseat in Martinez. Though outsidethe District's service area, the crosscounty link still benefits from an ACTransit contribution to its subsidyunder operation of WestCAT ("WestCounty Area Transit," the localtransit authority); and the Districtpersuaded other agencies to contribute to its support.

Working with the RegionalTransit Association (RTA), the District carried out a major revampingof the Transit Discount ID card program - under which seniors 65 andover and certified handicappedriders qualify for discounted fareson all public transit systems withinthe nine county region. The revisedcards, "Regional Transit Connection" IDs, provide expanded eligibility to new categories of riders,including veterans with disabilityratings of 50% or greater; persons

AC buses arewashed threetimes per week.

denied driver's licenses for specified reasons; and to Bay Area visitors holding similar discountidentification cards from their hometowns. The program revisionrequired reissuance of all existing IDcards, with AC Transit issuing some60,000 of the new cards during thetransition period.

Two major events required considerable effort and pre-planningwithin the District and the regionthis year: arrival in the East Bay ofofficial delegations to the 1984Democratic National Convention(held in San Francisco in July, 1984)and of the American Football Conference contenders in SuperbowlXIX (played at Stanford Stadium inPalo Alto). AC Transit joined otherRTA member systems gearing upfo r these events, both of whichrequired buses to carry official participants as well as visitors drawnto the Bay Area by each activity.Reportedly, nearly 85 percent ofSuperbowl XIX spectators (as wellas the contenders) traveled to thestadium on public transit. Similarlyhigh patronage was reported bytransit systems serving the Democratic National Convention.


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Personnel Services

AC Transit employs2,150 people.

New ingredients were added thisyear to the District's long-term programs for recognizing exceptionalemployee performance and safedriving milestones. A formalEmployee Recognition Programwas established to identify particular distinction of a bus driver, a maintenance worker, and an employeerepresenting the remaining classifications. Quarterly honors go tothese employees for exceptionalon-the-job accomplishments, and /or extraordinary commendationsfrom others, including peers, supervisors, and the public. These honorees, along with other exemplaryemployees, vie fo r recognition as"Employee of the Year."

In anticipation of official opening (scheduled for late 1985) of thenew Training and Education Center,AC Transit's instructional staffestablished close relationships withlocal educational institutions . Oneimportant result was an inaugural"College Day" in June, 1985, whichenabled approximately 100 employees to consult directly with representatives of numerous Bay Areacolleges and universities. This daylong educational fair initiated anarray of activities at the Centerdesigned to become a vital ne wregional source of career andpersonal-development classes andprograms for transportation work-

AC's upholsteryshop maintains39,629 bus seats.

ers, including enrollees from otheragencies.

Interagency cooperation alsoyielded continued productivity inemployee-advancement trainingthis year. The College of Alamedacontinued assistance in providing anine-month course of classroomstudy and hands-on practice to helpambitious service employeesbecome diesel mechanics. Also, adozen District employees completed an RTA Career DevelopmentProgram which, in cooperation withGolden Gate University, provided avariety of skil ls-developmentclasses.

This fiscal year, personnel-

related activities also included astudy of the District's policies andpractices with respect to salariedemployees. This effort includedassessment of policies and procedures inherent in the District 's management classification system, andin the benefits and conditions ofemployment for salaried personnel.The assessment continued atyear's end, with all questionsconcerning recommendationsfo r adjustmentsdeferred to thecomingyear.


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Administration

The informationcenter answersapproximately714,000 queriesabout route in-, formationfromthe public.

William J. Bettencourt of San Leandro, a Director since the District'sinception in the mid-1950's, waselected to serve as President of theBoard this year. Linda Shepard ofFremont was elected Vice President. A new Director, Jerome G.Wiggins, was chosen by Ward II voters in the general election to represent Richmond, Albany, Emeryville,and parts of Berkeley.

Risk and Insurance

AC warehouses12 ,000 separateitems from paperclips to buspower-trains.

Paid losses for personal injury andproperty damage claims decreasedslightly from $1,525,042 in FY 1984to $1,377,852 in the current fiscalyear. The District also gained$134,903 in subrogation recoveriesfor damage to equipment during FY1985. Under AC Transit's self-ensured Workers CompensationProgram, net costs paid on claimswas $1,870,331 - up from FY 1984costs ($1,397,817) because of increases in benefits mandated bystatelaw.


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Special Achievers

CelltraL DispatchhalldLes 1,400calls per day.

Three new names were added tothe roster of operators who haveearned the singular 25-Year SafeDriving Award . Eddie A. Haffer,Carl E. Swanson , and Clarence H.Tinsley became, respectively, the53rd, 54th, and 55th bus driversto achieve a quarter-century ofaccident-free driving. Bus DriverJohn Zorman continued to lead thisselect group, having accumulated atotal of 34 years of accident freedriving.

Board of Directors

William J. Bettencourt , Linda Shepard ,Pres ident Vice Pres ident

Michae l H. Fajans J. G. "Jerry" W iggins

John McDonnell

Roy Nakadegaw a===

Ray Rin ehart


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Management

L. A. "K im" KimballGeneral Manager

Richard W. MeierAttomey for the District

Lawrence A. RosenbergAssistant GeneralManager of Administrationand District Secretary

Nathaniel A. GageAssistant GeneralManager for Finance

Robe rt J. ShamoonAssistant GeneralManager for Operations

Glenn R. AndradePurchases and StoresManager

Richard A. FratusController

Mike MillsMarketing Manager

Loren A. Ba llTransportation Manager


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Ozro D. GouldRisk Manager

Warren E. RobinsonTransportation Engineer

Donald S. LarsonResearch and PlanningManager

John W. Rose, Jr.Affirmative ActionCoordinator

Gregory L. FordAdministrative ProjectsManager

Joe M. KinchenComputer OperationsManager

Alameda-Contra CostaTransit District

1985


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Auditor's Opinion

ADAMS, GRANT, WERNER & co.505 14th Street , Suite 950Oakland, California 94612

(415) 832-0257

DELOITTE HASKINS & SELLSOne Kaiser PlazaOakland, California 94612(415) 452-0250_______ CERTIFIED PUBLIC ACCOUNTANTS ______

The Board of Directors.Alameda-Contra Costa Transit District:

We have examined the combined balance sheets of Alameda-Contra CostaTransit District as of June 30.1985 and 1984 and the related combined statements of revenues and expenses. changes in capital and changes in financialposition for the years then ended . Our examinations were made in accordancewith generally accepted auditing standards and. accordingly. included suchtests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.In our opinion. such financial statements present fairly the combined financial position of Alameda-Contra Costa Transit Distr ict at June 30. 1985 and1984 and the combined results of its operations and the changes in its financial position for the years then ended. in conformity with generally acceptedaccounting principles applied on a consistent basis.Our examinations were made for the purpose of forming an opinion on thebasic combined financial statements taken as a whole. The supplementalschedule of certain revenues and expenses by special transit service districtand contract service area for the year ended June 30. 1985 is presented forpurposes of additional analysis and is not a required part of the basic combinedfinancial statements. Such supplemental schedule has been subjected to theauditing procedures applied in the examination of the basic combined financial statements and. in our opinion. is fairly stated in all material respectswhen considered in relation to the basic combined financial statements takenas a whole.September 6. 1985


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Combined Balance Sheets, June 30, 1985 and 1984 (in thousands)

AssetsCurrent Assets:Cash and investmentsAccounts receivable and accrued revenues (see notes 3. 4) :Federal grantsOther. principally state and local assistanceMaterials and supplies. at costPrepaid expenses

Total current assetsCash and Investments Appropriated for Accrued Pension Costs (see notes 2. 6)Property, Plant, and Equipment (see note 2) :LandBuildings. structures. and improvements

Revenue equipmentShop. office and other equipment. and service vehiclesAcquisitions in progressTotal property. plant. and equipmentAccumulated depreciationProperty. plant. and equipment - net

Total

liabilities and CapitalCurrent liabilities:Accounts payableSalaries. wages. and vacationsOther accrued liabilitiesAdvances under grants (see note 2)Self-insurance reserves (see note 2) :Workers' compensationPublic liability and property damage

Total current liabilitiesAccrued Pension Costs (see notes 2. 6)Capital (see notes 2. 5. 8):District equity

Contributed capital:Federal grantsState toll bridge fundsLocal transportation fundsTotai capital

Total

See notes to combined financial statements.

1985 1984

$ 17,641 $ 37.79113,003 8.1778,091 2.6385,335 2.726680 60844,750 51.94070,861 62.61111,298 11.15823,683 2.448

103,683 93.46916,992 5.87313,014 31.801168,670 144.749(41,975) (35.221 )126,695 109.528

$242,306 $224.079

1985 1984

$ 4,560 $ 1.9365,774 5.3122,154 3.3052,826 11.9282,631 2.2192,600 2.632

20,545 27.33270,861 62.61131,322 36.31486,386 71.63321,437 17.40911,755 8.780

150,900 134.136$242,306 $224.079


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Combined Statements of Revenues and Expenses for the Years Ended June 30, 1985 and 1984(in thousands)

1985 1984Revenues:

Fares $ 30,691 $31,773Property taxes 14,627 11,835Contract service 9,313 5,883Other operating revenues 745 970Operating assistance (see note 4):

Local sales tax (AB 1107) 11,400 16.400Local transportation funds 20,199 15,884Federal 8,111 7,863State Transit Assistance Fund 3,093 5,760

Interest earned on appropriated District funds and working capital, lessamounts allocated to accrued pension costs (see notes 2, 5, 6) 3,541 3,068

Total 101,720 99.436Expenses:

Operator wages 33,885 33,526Other wages 18,678 17,545Fringe benefits 26,362 24,238Fuel and oil 6,172 6,250Other materials and supplies 6,704 5,946Services 4,957 3,608Insurance 1,683 2,086Loss on disposal of property, plant. and equipment 2,941Other 3,393 3,256Total 104,775 96.455

Excess of Revenues (Expenses) Before Depreciation (see notes 2, 5, 6) (3,055) 2,981Depreciation (see note 2) 16,586 6,579Excess of Expenses Over Revenues $ (19,641) $ (3,598)

See notes to combined financial statements.


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ombined Statements of Changes in Capital for the Years Ended June 30, 1985 and 1984(in thousands)Contributed Capital

State LocalDi strict Federal Toll Bridge TransportationEquity Grants Funds Funds Total

Balance, June 30, 1983 $34,115 $59,887 $13,881 $ 7,916 $115.799Excess of expenses over revenues (3,598) (3,598)Depreciation expense transferred

from District equity 5,797 (4,407) (808) (582)Capital grant funds earned (see note 3) 16,153 4,336 1,597 22,086Land transferred to CCCTA (see note 1) (151 ) (151 )

Balance, June 30, 1984 36,314 71,633 17,409 8,780 134,136Excess of expenses over revenues (19,641) (19,641)Depreciation expense transferred

from District equity 14,649 (10,830) (2,646) (1,173)Capital grant funds earned (see note 3) 25,583 6,674 4,148 36,405

Balance, June 30, 1985 $31,322 $86,386 $21,437 $11,755 $150,900

See notes to combined financial statements .


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Combined Statements of Changes in Financial Positionfor the Years Ended June 30, 1985 and 1984 (in thousands)

Sources of Working Capital:Operations:

Excess of expenses over revenuesExpenses not requiring working capital-depreciation

Working capital provided (used) by operationsIncrease in accrued pension costsCapital grant funds earnedTransfer of land and revenue equipment to CCCTATotal

Application of Working Capital:Increase in cash and investments appropriated for accruedpension costsAcquisition of property, plant. and equipment-netTransfer of land and revenue equipment to CCCTATotal

Increase (Decrease) in Working CapitalIncrease (Decrease) In Components.of Working Capital:

Cu rrent assets:Cash and investmentsAccounts receivable and accrued revenuesMaterials and suppliesPrepaid expenses

TotalCurrent liabilities:

Accounts payable and accrued liabilitiesAdvances under grantsSelf-insurance reserves

TotalIncrease (Decrease) in Working Capital

See notes to combined financial statem ents.

1985 1984

$(19,641 ) $ (3,598)16,586 6,579(3,055) 2,9818,250 7,717

36,405 22,086151

41,600 32,935

8,250 7,71733,753 22,114

15142,003 29,982

$ (403) $ 2,953

$(20,151 ) $10,38810,280 (3,752)

2,609 1,20172 (111 )(7,190) 7,726

(1,936) (2,360)9,102 7,025

(379) 1086,787 4,773

$ (403) $ 2,953


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Notes to Combined Financial Statements

1. Organization and basis of presentation

2. Significant accounting policies

Alameda-Contra Costa Transit District (the District) is a political subdivision of the State ofCalifornia established in 1956 and subject to transit district law as codified in the California Pub-lic Utilities Code.The accompanying financial statements include the combined financial position, results of operations, and changes in financial position of the District's Special Transit Service Districts No.1and No.2 and other areas in which the District has contracted to provide transit service.The District has contracted to provide transit service for the Bay Area Rapid Transit District (BART)and several cities and other areas in Contra Costa County. The allocated cost of providing suchservice, less related operating revenue, is funded from local transportation funds, Federal operating assistance and, for BART express service, by direct reimbursement which is recorded ascontract service revenue.The District has entered into an agreement with the Central Contra Costa Transit Authority(CCCTA) whereby transit services in Central Contra Costa County which were previously provided by the District were assumed by CCCTA during fiscal 1982. As a part of this agreement,the District transferred to CCCTA land having a book value of $151,000 during 1984.

Investments are stated at amortized cost which approximates market value.Property, plant, and equipment is stated at cost and depreciated using the straight-line method.Estimated useful lives of property, plant. and equipment were revised effective July 1, 1984 tomore closely approximate actual experience as follows:Buildings, structures, and improvementsRevenue equipmentShop, office and other equipment. and service vehiclesPrior to July 1, 1984 estimated useful lives were as follows:Buildings, structures, and improvementsRevenue equipmentShop, office and other equipment. and service vehicles

30 years12 years

3 to 10 years

10 to 35 years15 years5 to 20 years

Revising the estimated useful lives increased depreciation and the excess of expenses over rev-enues in 1985 by $8,517,000.Self-insurance reserves - The District is self-insured for public liability and property damage upto $250,000 and workers' compensation claims up to $100,000 for each occurrence. Claims in excess of these amounts are insured with commercial carriers. The District provides, in each period,reserves to cover the estimated costs of the self-insured portion of these claims.Pensions - The District has two noncontributory pension plans, one covering all union employees and another providing similar benefits for nonunion employees. Provisions for pension ac-cruals are based on percentages of gross payroll which provide for the normal cost of the plansplus amortization of prior service cost over a period of not more than forty years. Cash and investments equal to such provisions are appropriated annually by the Boardof Directors to providefor the payment of benefits.Contributed capital-The District periodically receives Federal grants from the Urban MassTransportation Administration (UMTA) of the U.S. Department of Transportation, local transportation funds and state toll bridge revenues (see note 3) for the acquisition of buses and other equipment and improvements. Capital grant funds earned, less depreciation of the related assets,are included in contributed capital. Advances received on capital grants are recorded as liabilitiesuntil the funds are expended for capital acquisitions.


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3. Capital grants

4. Operating assistance

5. Appropriated District funds

The District has fifteen grant contracts in process with UMTA which provide Federal funds forthe acquisition of buses and other equipment and improvements. These grants are summarizedat June 30, 1985 as follows (in thousands):Total approved costsTotal Federal grantsLess:Amounts receivedAmounts receivable- netRemaining amount available under Federal grants

$170,615$134.467

(81,592)(4,870)$ 48,005

The District is committed to purchase additional equipment at a cost of approximately$45,305,000 in connection with these projects.Under the terms of the grants, proceeds from equipment sold during its useful life in proportionto the related Federal capital grant funds are refundable to the Federal government unless reinvested in like equipment.The District has also received allocations of funds generated from net toll bridge revenues of theSan Francisco Bay Bridges. These funds are received under provisions of the California Streetsand Highways Code and are allocated based on claims approved by the Metropolitan Transportation Commission (MTC).Local transportation funds received for capital grant projects include allocations received pursuant to the Transportation Development Act of 1971, certain property tax revenues, and certainlocal sales tax funds.

Federal operating assistance funds are received pursuant to Sections 5 and 9 of the Urban MassTransportation Act of 1974. Such funds are apportioned to the local urbanized area and are allocated to individual transit operators by MTC after approval by UMTA. Allocations granted during1985 are subject to final audit and approval by MTC and UMTA.The District also received allocations of local transportation funds pursuant to the TransportationDevelopment Act of 1971, certain local sales tax funds, and allocations from the State Transit Assistance Fund. These funds are allocated based on annual claims filed by the District and approvedby MTC.

The Board of Directors has authorized the appropriation of portions of available funds for thereplacement of facilities and equipment and other expenditures, as follows (in thousands):Balance, Balance,June 30, Interest Net June 30,1984 Earned Reduct ions 1985

Amounts appropriated:Restricted Fund $ 7,785 $1,337 $ 678 $ 8.444Facilities and Equipment Replacement Fund 1,257 216 1.473Improvement Allowance Fund 1,149 197 907 439Unemployment Compensation Fund 663 663Building Fund 6.470 1,112 7,582Working capital 3,950 679 3,055 1,574Total $21,274 $3,541 $4,640 $20,175


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6. Pensions

7. Deferred compensation plan

8. Litigation

The appropriated funds are to be used for the following purposes :Restricted fund - to provide for unusual or otherwise necessary expenditures for repair, im-provements to or replacement of essential elements of the District's facilities or for operatingrequirements.Facilities and equipment replacement fund - forthe purpose of meeting the District's contractualand related responsibilities as a recipient of Federal. state and local capital grants.Improvement allowance fund - to fund certain nonrecurring operating expenses or costs of pre-liminary engineering, environmental impact studies, preparation of capital grant applications,professional and technical service agreements and the procurement of equipment and materialrelated to capital improvements which initially may not be reimbursable by Federal grants.Unemployment compensation fund - to provide for potential unemployment liabilities whichmay result in the event of curtailment of services to or deannexation of District No.2.Building fund - to assist in meeting the District's potential financial requirements associatedwith the purchase, construction or rehabilitation of a building to provide adequate permanentaccommodations for the District's general offices consistent with the master Facilities Improve-ment Program.

The provision for pension accrual for the year ended June 30, 1985 was $5,134,000 (1984,$5,009,000) plus an allocation of $6,888,000 of interest earned on District investments (1984,$5,943,000) Benefit payments for the year were $3,772,000 (1984, $3,235,000).A summary of accumulated plan benefits and cash and investments appropriated for accruedpension costs as of January 1, 1983, the date of the most recent actuarial valuation, follows (inthousands) :Actuarial present value of accumulated plan benefits :VestedNonvestedTotalCash and investments appropriated for accrued pension costs

$54,9335,555$60.488$51.499

The entry age normal actuarial cost method is used assuming an 8% rate of return on invest-ments and retirement age of 65.

The District has a deferred compensation plan, adopted pursuant to Internal Revenue Code Sec-tion 457(bl. which provides for the deferral of aportion of participating employees' compensationuntil retirement. termination, or certain other covered events. Plan assets totaled $1,508,000 and$1,059,000 at June 30, 1985 and 1984. The benefits due under the plan are fully funded. Plan as-sets are held by an administrator in a segregated fund. As required by IRC Section 457, however,plan assets remain the property of the District until paid or made available to the participants, sub-ject only to the District's general creditors.

The District is involved in various claims and litigation arising in the ordinary course of its opera-tions . None of these is expected to have a significant effect on its operations or financial condition.


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upplemental Schedule of Certain Revenues and Expenses by Special TransitService District and Contract Service Area for the Year Ended June 30, 1985 (in thousands)Special TransitService District Contract Service Area

WesternDistrict Distric t Contra CostaNo.1 No.2 BART County CombinedRevenues:

Fares $ 28,584 $ 974 $ 1,102 $ 31 $ 30,691BART transfers 1,584 140 1,724Property taxes 12,793 1,834 14,627Contract service 1.482 6,247 7,729Operating assistance:Local sales tax (TDA) 17,026 3,033 20,059Local sales tax (AB 1107) 11.400 11.400State Transit Assistance Fund 3,032 61 3,093Federal grants 6,968 927 216 8,111Other operating revenue:Advertising 362 34 41 438Charter 72 72Other transit fares 68 68Other 167 167Interest earned onunrestricted funds 558 121 679

Total 84,096 7,124 7,390 248 98,858Expenses:Operator wages 29,303 2,333 2,177 72 33,885Other wages 15,804 1,390 1.436 48 18,678Fringe benefits 22,623 1,867 1,812 60 26,362Fuel and oil 5,210 459 487 16 6,172Other materials and supplies 5,666 499 521 18 6,704Services 4,179 398 367 13 4,957Insurance 1.420 125 133 5 1,683

Loss on disposal of property, plant.and equipment 2.483 218 232 8 2,941Other 2,873 274 238 8 3,393Total 89,561 7,563 7.403 248 104,775

Excess of Expenses Before Depreciation (5.465) (439) (13) (5,917)Depreciation 14,003 1,232 1,308 43 16,586Excess of Expenses Over Revenues $(19.468) $(1,671) $(1,321 ) $ (43) $ (22,503)

Statistical Data:Hours 1,842 155 135 5 2,137Miles 25,551 2,351 2,921 97 30,920Farebox recovery ratio 33.76% 14.73% 14.89% 12.50% 31 .00%Operating revenue ratio 36.71 % 16.78% 99.82% 12.90% 39.67%

See notes to supplemental schedule of certain revenues and expenses by special transit service district and contract service area.


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Notes to supplemental schedule of certain revenues and expensesby special transit service district and contract service area

1. Basis of presentationThe accompanying schedule includes certain revenues and expenses of the District's SpecialTransit Service Districts No.1 and No.2 and other areas in which the District has contracted toprovide transit service. In terest earned by the District on restricted funds has been excluded fromthe accompanying schedule.

2. Allocation of revenues and expenses

3. Statistical data

Operator wages and fringe benefit costs are based on actual costs incurred. Other expenses areallocated based on vehicle mi leage and hours. The following costs are not allocated to the con-tract service areas and have been charged to Special Transit Service Districts No . 1 and No.2 asfollows:

InterestCharter OfficePurchased transportation services for elderly and handicapped patronsBoard of DirectorsGeneral ManagerMeetings and membershipsTransbay Terminal

DistrictNo.1100%100808080100

Marketing expenses are allocated to ail Contract Service Areas except BART.

DistrictNo . 2

100%202020

Fare revenue is allocated based on vehicle mileage and hours and passenger test counts. Ad-verti sing revenue is allocated based on vehicle miles. The allocated cost of providing transit serv-ice, less related operating revenue, is funded from local transportation funds, state and Federaloperating assistance and, for BART express service, by direct reimbursement which is recordedas contract service revenue.

Hours and miles represent the standard operating time and distance for each route multiplied bythe number of times each route is traveled in the production of revenue. Included is a standardallowance for vehicles traveling to and from the beginning and end of each route.Farebox recovery ratio is the sum of fares, BART transfers, and other transit fares divided by totalexpenses before depreciation. Operating revenue ratio is the sum of fares, contract service,BART transfers, other operating revenue and interest earned on unrestricted funds divided bytotal expenses before depreciation.


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508 16th Street Oakland, California 94612

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AC Transit Annual Report 1984-1985

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