Adopted Budget - AC Transit...Jun 24, 2014 · Alameda-Contra Costa Transit District David J....

Adopted BudgetFiscal Year 2014-2015

May 28, 2014

Table of Contents FY 2014-2015 Adopted Budget

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Introduction

General Manager’s Letter ............................................................................................. 1 Resolution Adopting The General Fund Operating and Capital Budget ...................... 4

Adopted Operating Budget FY 2014-15 FY13-14 Mid-Year Revenue Budget vs. FY14-15 Adopted Revenue Budget Chart ............. 8 Percent Share of Operating Expenses by Use of Funds Chart ..................................... 9 FY13-14 Mid-Year vs. FY14-15 Adopted Operating Expense Budget by Category ........... 10 FY13-14 Mid-Year vs. FY14-15 Adopted Budget by Department Chart .................. 11 General Fund Operating Expense Budget by Department ......................................... 12 Alameda Contra Costa Transit District Organization Chart ...................................... 13 Passenger and Service Portrait ................................................................................... 14 Service Area Maps ..................................................................................................... 17 The Strategic Planning Process and Budget Development Process ........................... 20 Economic Outlook ...................................................................................................... 28 Assumptions for Revenues and Expenses Budget FY 2014-15 ................................. 29 Adopted Budget FY 2014-15 - Position Count by Department ................................. 37 Adopted Budget FY 2014-15 - Position Count by Type ............................................ 38 Adopted Budget FY 2014-15 - Position Changes ...................................................... 39 Adopted Operating Budget FY 2014-15 – Summary and Details .............................. 40 Adopted Operating Revenue Budget by Account FY 2014-15 .................................. 41 Adopted Operating Expense Budget by Account FY 2014-15 .................................. 42


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Adopted Capital Budget FY 2014-15

Adopted Capital Budget List of Projects .................................................................... 49 Adopted Budget Funding Priorities ............................................................................ 50 Funding Sources ......................................................................................................... 51 Existing Capital Program Overview ........................................................................... 54

Overview of Departments 1. General Manager ......................................................................................... 57

GM Org Chart ....................................................................................... 58 Department at a Glance ......................................................................... 59 Department Budget Worksheet ............................................................ 60 Department Positions ............................................................................ 61

2. Board of Directors & District Secretary .................................................... 62 Board of Directors Department at a Glance .......................................... 63 Board of Directors Department Budget Worksheet ............................. 64 District Secretary Org Chart .................................................................. 65 District Secretary Department at a Glance ............................................ 66 District Secretary Department Budget Worksheet ............................... 67 District Secretary Department Positions ............................................... 68

3. General Counsel ........................................................................................... 69 General Counsel Org Chart ................................................................... 70 Department at a Glance ......................................................................... 71 Department Budget Worksheet ............................................................ 72 Department Positions ............................................................................ 73


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4. Operations .................................................................................................... 74 Operations Org Chart ............................................................................ 75 Department at a Glance ......................................................................... 76 Department Budget Worksheet ............................................................ 77 Department Positions ............................................................................ 81

Transportation ........................................................................................ 84 Department at a Glance ...................................................................... 85

Department Budget Worksheet ......................................................... 86 Department Positions ......................................................................... 88

Maintenance ............................................................................................ 89

Department at a Glance ...................................................................... 90 Total Maintenance Budget Worksheet .............................................. 91 Fleet Maintenance Budget Worksheet .............................................. 95 Facilities Maintenance Budget Worksheet ........................................ 99 Department Positions ....................................................................... 101

5. Planning & Development .......................................................................... 103 Org Chart ............................................................................................. 104 Department at a Glance ....................................................................... 105 Department Budget Worksheet .......................................................... 106 Department Positions .......................................................................... 108

6. Performance ............................................................................................... 110 Org Chart ............................................................................................. 111 Department at a Glance ....................................................................... 112 Department Budget Worksheet .......................................................... 113 Department Positions .......................................................................... 116


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7. Technology .................................................................................................. 118 Org Chart ............................................................................................. 119 Department at a Glance ....................................................................... 120 Department Budget Worksheet .......................................................... 121 Department Positions .......................................................................... 123

8. Human Resources ........................................................................................ 124 Org Chart ............................................................................................. 125 Department at a Glance ....................................................................... 126 Department Budget Worksheet .......................................................... 127 Department Positions .......................................................................... 129

9. Finance and District Overhead ................................................................. 130 Org Chart ............................................................................................. 131 Department at a Glance ....................................................................... 132 Department Budget Worksheet .......................................................... 133 Department Positions .......................................................................... 135 District Overhead Department at a Glance .......................................... 136 District Overhead Department Budget Worksheet ............................. 137

10. Retirement ................................................................................................ 140 Department at a Glance ....................................................................... 141 Department Budget Worksheet .......................................................... 142 Department Positions .......................................................................... 143

Introduction

Alameda-Contra Costa Transit District David J. Armijo, General Manager

1600 Franklin Street - Oakland, CA 94612 - TEL (510) 891-4793 - FAX (510) 891-7157 - www.actransit.org

June 20, 2014

Greg Harper, AC Transit Board President 1600 Franklin S treet, Oakland, CA 94612 Dear President Harper and Members of the Board of Directors: I am pleased to present the Alameda–Contra Costa Transit District's (AC Transit) FY 2014-2015 Adopted Budget for your consideration. This balanced budget includes modest service enhancements with a new fare structure in FY 2015 allowing AC Transit to continue to improve the quality of service it provides to the East Bay community. The FY 2014-2015 Adopted Budget is comprised of an Operating Budget that totals $344.4 Million in operating revenues offset by $342.3 Million of expenses resulting in a positive operating surplus of $2.1 Million. In addition, the FY 2015 Adopted Capital Budget of $84.2 million includes $10.9 million in District capital funds to address our near term capital priorities. The budget has been built on the basis of 1.7 million Revenue Service Hours and 1.8 million Platform Hours. Major highlights of the FY 2015 Operating Budget include:

Service Enhancements – increased service will be added to (1) improve on-time performance on major trunk lines, (2) provide more trips on Transbay routes to increase capacity and meet the current demand on Transbay service, and (3) provide new mobility solutions for low density transit environments.

Fare Structure – Farebox revenues are anticipated to grow at 5 percent over the current fiscal year resulting from increased ridership. Additionally, ridership is expected to grow as a result of the implementation of an improved fare structure that includes a day pass and incentivizes Clipper usage.

Absence of Federal operating assistance for preventative maintenance to offset operating costs signals financial sustainability.

The operating expenses include $1.3 million for upcoming election of four Board members.

In its efforts to provide a better ride and increase ridership along with introducing cost efficiencies the District has embarked upon major capital projects like East Bay Bus Rapid Transit and Line 51 improvements. Our future capital needs exceed over $300 million for the next five years. These future needs will be further detailed in the upcoming Short Range Transit Plan. The FY 2015 Adopted Capital Budget of $84.2 million addresses roughly one third of the

Operating Budget

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FY1314 Mid Year Revenue Budget vs. FY1415 Adopted Revenue Budget

16%

4%

17%

11%

7% 3% 1%

23%

9%

3% 4%

2%

FY1314 Mid Year Budget

Farebox

Other Operating Revenue

Transportation Develop. Act (TDA)

AB 1107

Measure B

State Transit Assistance (STA)

Measure J

Property Taxes

Measure AA/BB/VV

Total ADA related Subsidies

RM2 subsidies, DB local assistance

Other Subsidies

16%

4%

17%

11% 8%

3% 1%

23%

9%

3% 4%

1%

FY1415 Adopted Budget

Farebox

Other Operating Revenue

Transportation Develop. Act (TDA)

AB 1107

Measure B

State Transit Assistance (STA)

Measure J

Property Taxes

Measure AA/BB/VV

Total ADA related Subsidies

RM2 subsidies, DB local assistance

Other Subsidies

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0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

FY1314 Mid Year Budget FY1415 Adopted Budget

AC Transit Percent Share of Operating Expenses by Use of Funds

Service Enhancement

Other Expenses

ADA and DB purchased transp

Interest Expenses

Casualty and Liability

Utilities and Taxes

Other Materials and Supplies

Fuel and Lubricants

Services

Labor Costs, net of capitalized labor

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FY1314 Mid Year Operating Expense Budget vs. FY1415 Adopted Operating Expense Budget

69.4%

6.7%

5.7%

4.7%

1.8%

3.0%

0.4%

8.1%

0.3%


Labor Costs, net of capitalizedlaborServices

Fuel and Lubricants


Utilities and Taxes


Interest Expenses


Other Expenses

69.4%

6.9%

5.3%

4.3%

1.8%

2.9%

0.3%

7.7%

0.8% 0.6%

FY1415 Adopted Budget

Labor Costs, net of capitalizedlaborServices

Fuel and Lubricants


Utilities and Taxes


Interest Expenses


Other Expenses

Service Enhancement

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Department

FY1314 Mid Year

Budget % of Total Department

FY1415 Adopted

Budget

% of

Total

Board Of Directors 248,810 0.1% Board Of Directors 248,132 0.1%District Overhead 21,956,293 6.5% District Overhead 20,285,370 5.9%District Secretary 339,996 0.1% District Secretary 460,473 0.1%Finance 7,184,384 2.1% Finance 7,003,715 2.0%General Manager 1,749,743 0.5% General Manager 1,515,172 0.4%Human Resources 5,492,536 1.6% Human Resources 6,980,787 2.0%Office of the General Counsel 13,324,602 4.0% Office of the General Counsel 13,314,974 3.9%Operations 231,801,446 69.1% Operations 234,397,294 68.5%Performance 8,382,071 2.5% Performance 9,607,494 2.8%Planning & Development 34,263,133 10.2% Planning & Development 34,288,613 10.0%Technology 10,503,544 3.1% Technology 10,982,724 3.2%Retirement Dptm. 201,811 0.1% Retirement Dptm. 80,380 0.0%

Service Enhancement Plan 2,101,787 0.6%Contracts and Labor Agreements 974,881 0.3%

335,448,370 100.0% 342,241,795 100.0%

FY1314 Mid Year Budget vs. FY1415 Adopted Budget by Department

0.1%

6.5%

0.1% 2.1%

0.5% 1.6%

4.0%

69.1%

2.5% 10.2%

3.1% 0.1%


Board Of Directors

District Overhead

District Secretary

Finance

General Manager

Human Resources

Office of the General Counsel

Operations

Performance

Planning & Development

Technology

Retirement Dptm.

0.1%

5.9%

0.1% 2.0%

0.4% 2.0%

3.9%

68.5%

2.8% 10.0%

3.2%

0.6% 0.3% FY1415 Adopted Budget

Board Of Directors

District Overhead

District Secretary

Finance

General Manager

Human Resources

Office of the General Counsel

Operations

Performance

Planning & Development

Technology

Retirement Dptm.

Service Enhancement Plan

Contracts and Labor Agreements

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Department FYE 12/13 Actuals

FY13/14 Mid-Year

Budget

FY14/15 Adopted

Budget

General Manager 1,597,795 1,749,743 1,515,172

Board Of Directors 202,757 248,810 248,132

District Secretary 346,959 339,996 460,473

Office of the General Counsel 14,795,644 13,324,602 13,314,974

Operations 221,213,785 231,801,446 234,397,294

Planning & Development 32,465,976 34,263,133 34,288,613

Performance 7,130,925 8,382,071 9,607,494

Technology 7,573,528 10,503,544 10,982,724

Human Resources 5,614,232 5,492,536 6,980,787

Finance 6,082,163 7,184,384 7,003,715

District Overhead 24,855,299 21,956,293 20,285,370

Retirement 152,781 201,811 80,380

Grand Total of Departments 322,051,656 335,448,370 339,165,127

Service Enhancement Plan 2,101,787

Contracts & Labor Agreements 974,881

Total Adopted Operating Expense Budget 342,241,795

AC TransitGeneral Fund Operating Expenses Budget

(All operating expenses in nominal costs, in $)

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Alameda Contra Costa Transit District Alameda-Contra Costa Transit District

Citizens

Board of Directors

General Manager

David J. Armijo

District Secretary Linda Nemeroff

General Counsel Denise Standridge

(Interim)

Finance

Lewis Clinton CFO

Budget

Benefits

Learning &

Development

Staffing & Compensation

Personnel Records-HRIS

Leave Mgmnt. Workers Comp

Help Desk / PC Technicians

Legal

Accounting

Technology

Tom O’Neill CTO

Human Resources

Kurt De Stigter CHRO

Comm Relation Legislative Aff

Risk Management

Treasury

Network/Softwr.

Engineers

Safety & Environ Eng

PeopleSoft Engineers

Engineering & Design

BRT Project **

Service Planning

* Transit Enforcement reports to Operations as well as the General Manager. **Due to the significance of the BRT Program, the BRT Program Director has direct access to the Chief Operating Officer if circumstances warrant.

Operations

James Pachan COO

Training & Education

Tech Serv / Quality Assur.

*

Transportation

Fleet & Facility Maintenance

Operations

Control Center

Performance

Thomas Prescott CPO

Internal Audit

Telecom

Customer Service

Drug & Alcohol

Grants Acct/ Fixed Assets

Compliance & Diversity-EEO

& Diversity

Print Shop

Media Affairs

Project Management

Planning & Devel.

Dennis Butler CPDO

Transit Enforcement*

*




*

Transportation


Operations

Control Center


*




*

Transportation


Operations

Control Center


*

Labor Relations

Project Control & Syst Analysis

Procurement & Materials Mgmt

Marketing &

Communication

Capital Planning & Grants

Senior Advisor

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Introduction Passenger and Service Portrait

Service Area

364 square miles

13 cities plus adjacent unincorporated communities including service to downtown San Francisco via the Bay Bridge and Foster City and San Mateo via the San Mateo Bridge

Service Levels

104 bus lines (as of December 2013)

Serving 25 BART stations

Approximately 5,600 bus stops

569 Buses

19.2 million revenue service miles driven annually Passenger Trips

55.2 million trips annually (FY 2012/2013)

197,000 passengers each weekday (October 2013)

Demographics

15% under 20 years of age

28% between the ages of 20-29




11% over 60 years of age Service Usage Per Passenger

40% don’t own automobiles

43% of all trips are work related

22% of all trips are school related

Fare Structure

Local (Effective July 1, 2014)

Cash Fare Adults

Single Ride $2.10 Day Pass $5.00

Youth (5-18) / Senior / Disabled Single Ride $1.05 Day Pass $2.50

Clipper Cash Adults

Single Ride $2.00 Day Pass $5.00

Youth (5-18) / Senior / Disabled Single Ride $1.00 Day Pass $2.50

Local Clipper Passes Clipper Adult 31-Day Pass $75.00

Clipper Youth 31-Day Pass $20.00

Clipper Senior/Disabled Pass $20.00

Transbay (Effective July 1, 2014)

Cash Fare Adults $4.20

Youth (5-18) / Senior / Disabled $2.10

Transbay Clipper Passes

Adult 31-Day $151.20

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Fixed Route Accessibility Regional Transit Connections All coaches are equipped with passenger lifts/ramps and

have a kneeling feature.

Coaches equipped with automated voice announcement system

Reduced fares are available for certified eligible individuals with a disability and seniors

14-Member Accessibility Advisory Committee appointed by the Board of Directors.

AC Transit connects with the following fixed route services in the

Bay Area:

San Francisco Bay Area Rapid Transit District Rail Service

(BART)

Dumbarton Bridge Bus Service (Dumbarton Express)

Union City Transit

San Francisco Municipal Railway (MUNI)

San Mateo County Transit District (SamTrans)

Santa Clara Valley Transportation Authority

SolTrans (BART Link)

Western Contra Costa Transit Authority (WCCTA) and

Martinez Link

Capital Corridor/Amtrak

Altamont Commuter Express (ACE)

Golden Gate Transit

Caltrain

Fairfield and Suisun Transit (FAST)

Napa VINE

Emery Go Round

San Leandro LINKS San Francisco Bay Ferry (from Alameda & Oakland to San

Francisco & South San Francisco)

Americans with Disabilities Act (ADA) Mandated Paratransit Shared-ride Paratransit service is available from the East

Bay Paratransit Consortium (BART and AC Transit) for persons who are unable to use regular bus or train service.

15 member Service Review Advisory Committee represents individuals with a disability, seniors and health and human services organizations

Website: www.eastbayparatransit.org

E-mail: [email protected]

Information for Hearing or Visually Impaired Public Information is available in accessible formats

including Braille, audio tape, computer diskettes, and large print.

“711” through the California Relay Service is available for route information and to make service comments.

Website: www.actransit.org

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Locations Important Telephone Numbers / Contact Information AC Transit has eight facilities, seven of which are operating facilities and one (*) of which offer customer services to the public, including Clipper and pass sales and trip-planning assistance.

General Office/Customer Service * 1600 Franklin Street Oakland, California Training and Education Center 20234 Mack Street Hayward, California Emeryville Operating Division (#2) 1177 47th Street Emeryville, California Richmond Division "Inactive" (#3) 2016 MacDonald Avenue Richmond, CA 94801-3356 East Oakland Operating Division (#4) 1100 Seminary Avenue Oakland, California Central Maintenance Facility and Stores Facility (#5) 10626 East 14th Street Oakland, California Hayward Operating Division (#6) 1758 Sabre Street Hayward, California TT - Transbay Terminal First and Missions Streets San Francisco, CA 94105

Customer Relations Ticket Office District Secretary Main Media Relations Telephone Device for the Deaf (TDD) Transit Information Website E-Mail:

(510) 891-4700 (510) 891-4706 (510) 891-7284 (510) 891-4777 (510) 891-4745 Dial “711” ( through the California Relay Service) Dial “511” www.actransit.org [email protected]

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AC Transit Service Maps

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STRATEGIC PLANNING AND ANNUAL BUDGET DEVELOPMENT PROCESS OVERVIEW Development of basic budget principles for pursuing a sustainable, goal‐driven management model The 2012 executive strategy session on the strategic plan developed organizational goals for the agency. The executive strategy session included conducting a SWOT analysis, more specifically, dealing with the agencies strengths, weaknesses, opportunities and threats for attaining its goals. The strategic session produced a modified mission statement, and five key organizational goals. Tactical plans were then developed that addressed each organizational goal and set forth a timeline for delivering on each goal in the annual budget. AC Transit Mission Statement Connecting our communities with safe, reliable, sustainable service ... we'll get you there. AC Transit's Organizational Goals 1. Effective Communication, Messaging & Marketing

a. Enhance Image & Branding b. Internal & External

2. Provide Quality & Reliable Service 3. Utilize Financial Resources Efficiently & Effectively

a. Capital Projects b. Operational

4. Create a Safety Culture 5. Attract & Retain a High Quality Workforce

a. Employee Production & Accountability Staff has continued to refine these goals and objectives, along with providing more definition to the tactical steps as part of this strategic planning effort. The Board of Directors adopted the proposed new operating and capital development budgeting process, as part of the ongoing design and implementation of a new strategic planning, goals and objectives performance management model on February 27, 2013. The new budgeting process was the basis for the FY 2014‐15 budget development process, and staff

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conducted a series of meetings with each department for development of the new fiscal year budget models. The department meetings were an important part of the process of generating systematic buy‐in for the design and cultivation of a strategic planning, goal‐oriented mindset. This process also seeks to create a new organizational culture, improved morale, and a new performance‐driven attitude. The FY 2014‐15 operating and capital budgets were developed in accordance with the new strategic goals and objective based model. The new budgeting model is intended to achieve the following:

• It connects budgeted programs and resources with specific targets creating a strong sense of direction and accountability.

• It fosters a collaborative, culturally cohesive and open communication budgeting environment, which should result in more systematic, performance‐driven and comprehensive budgeted programs.

• It fosters the effective and efficient utilization of all resources, conducive to performance‐oriented, cost effective and cost efficient budget solutions.

• It fosters active ownership and management of processes and activities in a coordinated and ongoing manner during the fiscal year, assuring feedback and regular oversight to achieve set goals.

The FY 2014‐15 budget recommendations support the provision of financial resources to support the performance management strategy being implemented within the District. The specific FY 2014‐15 goals and objectives for the District are defined below:

AC TRANSIT DISTRICT GOALS AND OBJECTIVES District Goal 1: Provide Quality and Reliable Service

Eliminate Cancelled Assignments and Reduce Outlate assignments to:

•

• 5,200 miles by the end of June 30, 2015

Improve On‐Time Performance to:

• 72% by end of June 30, 2015

Improve Operator Courtesy as Evidenced by Reduced Complaints to:

• 5% reduction in complaints by end of June 30, 2015

Improve Scheduling Efficiencies to:

• 10% reduction specialty school service by end of June 30, 2015 • Review of service enhancements to bus network by end of June 30, 2015

Reduce absenteeism to:

• 5% reduction from current absenteeism rates by end of June 30, 2015

Reduce Missed Trips to:

• 300 total systemwide per month by end of June 30, 2015 District Goal 2: Create a Safety Culture

Improve District Emergency Response efforts, as follows:

• Implement new Alameda County Sheriff contract by September 30, 2014

• Implement new Contra Costa Sheriff contract by September 30, 2014

• Develop revised System Security Plan by June 30, 2015

Improve system security by implementing security enhancements, as follows:

• Reduce Crime Indicators for crimes on buses 5% by June 30, 2015

• Monitor and modify special high profile ALCO team by June 30, 2015

Reduce employee injuries and workers compensation costs, as follows:

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• Implement injury frequency standards benchmark

• Install Automatic External Defibrilllators (AEDs) by March 2015.

Division/Department to account for employee exposure hours and total injuries.

• Reduce injury frequency rate by 5% the established benchmark at each Division/Department June 30, 2015.

Reduce accidents per 100,000 miles to:

• 7.25 by end of June 30, 2015

Reduce passenger accidents/incidents per 100,000 miles to:

• 3.25% by June 30, 2015

Implement new safety programs

• Initiate installation of cameras at transit centers

• Refine focus of the new Alameda County Sheriff Department special community based policing unit

District Goal 3: Utilize Financial Resources Efficiently and Effectively

Continue development of a contract procurement process from budget approval through contract award as measured by an approved process and trained project managers and contract specialists, including the implementation of a new RFP format and the review of new software solutions for project tracking as a future improvement.

Implemented an electronic contract routing & approval process via SharePoint to reduce losses and delays from the previous paper contract routing process.

Review provisions of the Affordable Healthcare Act to determine the impact to the District as measured by overall plan cost, since healthcare premiums increased by about 8% for the new fiscal year. Evaluate healthcare program options by December, 2014.

Implement a new Employee Development program to provide new learning opportunities for existing staff to assist in performing their current duties and to prepare for future advancement in the District.

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Establish a standard set of project milestones and use them for all projects valued at over $250,000 to be completed by December, 2014.

Reduce the Pay to Platform hours by an additional 1% to provide additional operating efficiencies.

Maintain overtime expenditures at 5% below budgeted levels for the fiscal year.

Maintain materials and supplies expenditures at 5% below budgeted levels for the fiscal year.

Maintain services expenditures at 5% below budgeted levels for the fiscal year.

District Goal 4: Attract and Retain a High Quality Workforce

Improve the diversity of the District’s workforce as measured by:

• Improved diversity statistics and adherence to the EEO plan by June, 2015

Encourage and reward strong performance by establishing a compensation program for unrepresented employees where pay increases are related to employee performance as measured by:

• Program implementation to be completed by the fall of 2014

Improve documentation and communication of past employee performance and improve future employee performance by establishing a performance feedback system (in addition to current goal setting processes) for AFSCME employees as measured by:

• Process development completed by June, 2015

Improve employee skills and abilities by introducing formal employee development discussions between supervisors and their unrepresented and AFSCME direct reports as measured by:

• Program completion by by June, 2015

Improve retention of employees and improve employee skills and abilities by creating a Learning and Development unit that assists employees with accessing resources to improve their skills as measured by:

• Creation of employee development team by August, 2014

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• Programs and procedures implemented by June, 2015

Increase employee organizational commitment and ability to quickly become effective by creating on‐boarding practices that ensure the tools, resources and organizational knowledge needed by new employees are provided in a timely manner as measured by:

• On‐boarding materials and procedures in place by January, 2015

• Implement Hay Study with revisions to pay and classifications by July 2014.

• New performance review process implemented in July 2014 as part of the performance management process.

District Goal 5: Effective Communication, Messaging and Marketing

Continue to improve awareness of key District initiatives as measured by a 15% increase in recall and understanding of District projects and programs. Enhance AC Transit’s image among external audiences as measured by a 15% improvement as determined by a public perception survey.

Baseline survey regarding the key District initiatives was conducted in the summer of 2013, with the follow up study to determine the level of improvement planned for FY 14‐15.

Implement a new “Ask the GM” program to expand internal communication at the District.

Implement a new Monthly / Bi‐Monthly newsletter to improve internal and external communications.

AC TRANSIT DISTRICT MAJOR PROGRAMS

The FY 2014‐15 fiscal year will provide the District with additional opportunities to improve our services with the continuation, implementation, and completion of several major programs, as follows:

• Major Programs

Complete procurement of existing order for 106 transit buses. Complete procurement of 10 small, cutaway buses.

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Initiate procurement for the new fiscal year for replacement and expansion buses. Replace an additional 10 to 15 nonrevenue vehicles. Initiate the A&E contract for the Richmond Division 3 refurbishment. Initiate the A&E contract for the Operations Central Control relocation. Complete division facility upgrades as outlined in the Capital budget. Implementation of new Fare Policy. Initiate the upgrade to PeopleSoft Version 9.2. Replace obsolete Storage Area Networks (SANs) at the GO and our disaster recovery site. Upgrade our Ventyx Ellipse asset management system to version 8. Complete the remaining phases of farebox installation (integration with CAD/AVL and Clipper). Development of program management contact for CAD/AVL and initiation of CAD/AVL procurement. Completion of BRT 100% design and initiation of utility relocation construction activities. Initiation of A&E contract for BRT San Leandro terminal design. Installation of Diesel Particulate Filters on 51 Van Hool 30’ buses. Completion of maintenance bay conversion for hydrogen buses at the Emeryville division. Commissioning of the Seminary division hydrogen fueling station. Completion of the installation and commissioning of the Hayward facility solar panels. Completion of conversion to HASTUS operator bid (vacation and floating holidays are currently in transition). Initiation of contracts for replacement of bus washers and hoists and operating divisions. Completion of the Line 51 project improvements. Development of a Short Range Transit Plan.

Department managers and frontline employees will continue to focus on the District’s new commitment to achieving departmental goals, key performance indicators, and specific targets during the budget period. Staff will generate specific Goals and Objectives as part of the Performance Management Process with specific targets and timelines for achievement that will guide the long term and short term initiatives that will assure the sustainability of the mission of the District. These goals and objectives will be aligned with the Short Range Transit Plan (the District's long‐term vision strategy document) and the Annual Budget short‐term operating planning process. Staff's goal is for a process that will not only help produce a "balanced budget" today, but most importantly, will produce a transformational change in the way the

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District creates value for all Stakeholders of the District, securing long term sustainable finances, sustainable environmental benefits and sustainable positive social effects to the East Bay community, the taxpayers, the employees and all other Stakeholders associated with the District. The proposal to adopt performance goals and measures will not only meet long standing planning requirements established by MTC, but it will also put the District on par with other large public transit operators that have adopted similar programs focused on performance. It will also put the District in good standing to receive new federal revenues, in accordance with the key tenets in MAP‐21 performance requirements.

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AC TRANSIT - MACROECONOMIC (EXTERNAL) ASSUMPTIONS BUDGET FY 2014-15

KEY VARIABLE

Description of the forecast for the variable

Population Growth

Population growth in the service area of Alameda and Contra Costa Counties is showing a trend of increased growth over the current growth projection estimates of 0.8% - 1.0%, with projections for next fiscal year at approximately 1.1% growth.

East Bay Economy

The East Bay area is experiencing improved economic growth, which is based on emerging new clusters of industries and increased growth in traditional bastions of strength in the region like Construction, Trade and Warehousing, and Education/Health.

Employment in the region is anticipated to grow at 2.5% for next year, with the unemployment rate for the region at about 5.5% for FY 2014-15.

Inflation (Bay Area CPI): Mild yet slightly growing inflation projected at 2.5% average.

Interest rates are expected to remain at a very low level in the short to midterm, but beginning to trend toward very moderate growth. The housing market fundamentals in the East Bay area have improved with the projection for continuous yet moderating increase in home property values and renewed investment in C&I construction. Taxable Sales grew at a rate close to 6% during calendar year 2014.

Funding Sources

The District is pursuing procurement of new buses and phased-out its previous reliance on federal funds for capital acquisitions exchanged to fund operating programs. The District will renew its efforts to improve the level of reimbursement through the indirect cost allocation plan. CA State budget has improved but it is not very likely to be a source of new significant funding in the very short run, but Cap-and-Trade revenue could become a growing source of future State funds. New sales tax measures (ACTC Measure B) could also be available in the future.

Fringe Benefits costs

Fringe benefit costs are experiencing increasingly intense pressure on the overall labor costs due to persistently high health care costs growth rates. PEPRA legislation and changes to OPEB benefits remains unavailable as potential relief to the District’s cost structure.

Fuel Prices Fossil fuel prices are projected to trend downward due to increased domestic production and lower demand driven by increased levels of renewable energy sources. The fuel prices are subject to some uncertainty due to tensions within oil producing countries that have the potential to cause temporary price spikes.

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ASSUMPTIONS Adopted Budget FY 2014-15

REVENUES

Description of the operating internal assumptions Operating: Total Farebox

The farebox recovery ratio is expected to continue inching up closer to 20% as the favorable trend in ridership growth persists. The Adopted Budget includes an increase in farebox collections to reflect this trend, while ridership growth is expected to approach 4.5%. Fares collections also reflect the decision not to increase fare prices but to restructure the use of fare media and transfers starting FY1415. It also reflects the effect of the Service Enhancement Plan.

Operating: Contract Services

This line item reflects the continuation of strong positive revenue trends associated with fare media agreements for service contracted with UC Berkeley, City of Oakland, and others.

Operating: BART Transfer

Reflects the revenues based on the new BART Feeder Service Agreement.

Operating: Interest Income

Staff has projected the continuation of low level of yield returns on the Repos and Agencies that have been the traditional short-term investment vehicles allowed by existing policy. Expected yields are projected to remain at low rates in the short to mid-term, with a tendency to increase due to growth of the US economy.

Operating: Advertising

Projection considers additional revenue coming from the variable component of the contract due to slightly better sales of ad space due to the improving regional economy and a favorable negotiation of the renewal of the advertising contract.

Operating: Other Revenue

Parking citation tickets are stabilizing and thus projections have been adjusted conservatively. Other revenues included in the projection will remain around average historical levels. The drop from the Mid Year FY1314 Budget is due to the effect of one time collections associated with services rendered to BART due to the strikes that occurred in 2013.

Operating: Rental income

Reflects the expected lease income to be received from tenants at the new 66th Avenue facility, considering the impact of vacancies.

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Sales Tax-based Subsidies: TDA

Staff has revised allocations as per the February 2014 MTC Fund Estimate release. Although the funding levels projected by MTC for FY 2014-15 look stagnant compared to actual FY 2013-14, there are signs of an improved regional economy and taxable sales levels in the latter part of FY 2013-14 that prompted the budget staff to consider that a revised allocation will be available during the next revision later in the calendar year. The stronger economic performance in the San Francisco Bay Area compared to California and the Nation appears to be translating in more sales activity in the East Bay service area where the District operates. Taxable sales in the region where this subsidy derives from are growing at around 6% based on latest CA FTB BOE figures and private providers of more timely data.

Sales Tax-based Subsidies: AB1107

Staff has revised allocations as per the February 2014 MTC Fund Estimate release. Although the funding levels projected by MTC for FY 2014-15 look stagnant compared to actual FY 2013-14, there are signs of an improved regional economy and taxable sales levels in the latter part of FY 2013-14 that prompted the budget staff to consider a revised allocation will be available during the next revision later in the calendar year. The stronger economic performance in the San Francisco Bay Area compared to California and the Nation appears to be translating in more sales activity in the East Bay service area where the District operates. The District benefits through this subsidy from the spillover in economic activity generated in the City and County of San Francisco. Taxable sales in the region where this subsidy derives from are growing close to 7% based on latest CA FTB BOE figures and private providers of more timely data.

Sales Tax-based Subsidies: Measure B

Staff has revised available allocations. Although the existing funding levels projected by ACTC for FY 2013-14 look stagnant, and there is no official data available for FY 2014-15, there are signs of an improved regional economy and taxable sales levels in the latter part of FY 2013-14 that prompted the budget staff to consider a revised allocation will be available during the next revision later in the calendar year. The stronger economic performance in the San Francisco Bay Area compared to California and the Nation appears to be translating in more sales activity in the East Bay service area where the District operates. Taxable sales in Alameda County are growing at around 5.5% based on latest CA FTB BOE figures and private providers of more timely data. Staff will keep in contact with Alameda CTC and will adjust figures accordingly to reflect the official FY 2014-15 allocations as soon as an official report is obtained.

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Sales Tax-based Subsidies: STA

Staff has revised allocations as per the February 2014 MTC Fund Estimate release. The reduction in allocations for this subsidy are consistent with the drop in prices of fuel seen during much of the current fiscal year and projected by the futures markets into the current calendar year and beyond.

Sales Tax-based Subsidies: Measure J

The projection is based on an estimate based on the probable allocation to be submitted by the Contra Costa County Authority. It equals the proceeds from the Measure J allocation process.

Property Tax-based Subsidies (inc. Measure VV)

The Adopted Budget assumes certain growth factors based on input from data received from the Alameda County Assessors’ Office for this subsidy. The base Property tax subsidy is experiencing significant increases in collections due to the high level of activity in the real estate markets and major price increases for residential and nonresidential properties in the current year, and is projected to continue this trend for the rest of the calendar year and well into FY 2014-15. The recent taxable assessment roll from the Alameda County Assessor confirms the growth rate of 5% that the District Staff has used as baseline for growth of receipts of FY 2014-15, however, the uncertainty factor remains around the magnitude of property tax subsidies allocated from redevelopment activities. Staff remains confident that the total receipts estimated are only moderately optimistic. Measure VV subsidies are fixed at a combined $96.00 per parcel. The total budgeted figure reflects existing parcels in the area and is expected to show growth caused by the resurgence in permits and building completions during FY 2013-14 and FY 2014-15. Looking forward, the District is continuing plans for the eventual presentation to voters of a proposal to maintain this existing measure past the sunset date in FY 2017-18.

ADA related Subsidies

Staff has revised allocations as per the February 2014 MTC Fund Estimate release. The ADA Paratransit Lease revenue is assumed to grow moderately during the period.

Preventive Maintenance and Capital Funds Exchanges

This line item consolidated all PM related activity. At this point, this activity has been refocused on funding capital projects acquisitions, particularly bus fleet procurement. Therefore, no sourcing of these funds for operating purposes is foreseen for FY 2014-15.

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Other Grants and Subsidies

These are mostly fixed allocations or commitments to be received as scheduled, and other subsidies and proceeds from reimbursable labor expenses and the indirect cost allocation plan. The most significant pieces are:

RM2 subsidy for several routes, including Dumbarton Bridge, which sums up to $ 12.6 Million.

Oakland Unified School District allocation of $ 2.2 Million to be used to partially fund the full cost of school service in the OUSD area provided by the District.

Finally, the effect of reimbursable labor costs related to staff’s time used in developing capital assets projects, approximately $ 1.8 Million.

32


OPERATING EXPENSES

Description of the operating internal assumptions

Labor Costs

The Adopted Budget full time equivalent positions for FY 2014-15 are 1,901 positions. The staffing level includes initiatives to reduce the impacts for service support, including sufficient Operators for our current service levels and critical Maintenance and supervisory staff required to improve the efficacy and efficiency of service. Total Platform hours for FY 2014-15 is projected to be 1.8 million hours, which represents 1.7 million Revenue Vehicle Service Hours. Total Salaries and Wages figures for FY 2014-15 reflect the management of our employees in a more efficient manner. Operational changes are lowering overtime costs and work-rule based costs along with improving performance. The figures also reflect the effects associated with the last contract agreement with ATU. Total fringe benefits expenses are higher than total net salaries and wages since FY 2009-10, in spite of lower headcount due to service cuts and other departmental reorganizations and restructurings from years past. The increased cost is due to increased annual amortization costs which required to support the unfunded actuarial accrual liability of the District’s Pension Contribution expenses, plus continuously high average cost per employee of medical, dental and vision care premiums, despite the implementation of co-pays and contributions to health care premiums. The FY 2014-15 Adopted budget for health care premiums reflects the recent rate increases for medical premiums in the range of 8.8% quoted by vendors and still subject to agreement by Staff and the Board. The Pension Contribution figure reflects a positive adjustment which was discussed with the Retirement Board, based on the receipt of an update to the actuarial review based on portfolio performance as of 2013. The cost of workers’ compensation insurance is projected to show some stabilization, albeit at a high level mostly because of the present level of claims. Staff is taking action on this matter and has designed a plan currently in implementation to foster and enforce a Safety and Wellness culture, which should reduce the number of accidents and improve operational efficiencies at the same time. This initiative has already helped with the accidents rate for external third-parties to the District. Paid Time Off expenses as a percent of Gross Salaries and Wages is projected to remain stable at approximately 18% of net reported salaries and wages. Other fringe benefits will vary according to changes in salaries and wages, by virtue of the contract language, by experience, or by inflation.

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Services

Services expenses increased by a $ 1.2 million from FY 2013-14 Mid Year Budget levels at around $ 23.7 Million, for programs and activities as submitted by operating managers during the Budget process, and reviewed and authorized by the General Manager, the CFO and the Executive Staff and presented for approval to the Board of Directors. Major services expenses are the following:

Security Services, $ 9.6 Million, as a consequence of restructuring the service levels and effective management of the contract with Alameda and Contra Costa County Sheriffs, and renewed efforts to align those services in this year’s negotiations

Certain professional, technical and maintenance contractual services, particularly in the Information Services and Technology, Maintenance, Human Resources, Finance and Planning and Development departments, for a total of $ 7.9 Million

Outside Training Services, $ 0.5 Million, a historical level associated with the strategic priority designed to improve the productivity and technical capabilities of the entire workforce on a number of systems, tools and techniques.

Clipper expenses associated with the costs of the Clipper program, not funded by MTC of about $ 1.0 Million

Outside Attorney Fees, remain at a higher level to account for final resolution on several ongoing litigations.

Claims Administration of about $ 1.2 Million for the management of claims Districtwide

Outside Repair Services contracted mostly by the Maintenance department at around $ 0.7 Million, which is slightly lower than FY 2013-14 Mid Year Budget

Management Service fees, mostly Tax administration services performed by the counties on our behalf, and other fees, $ 0.4 Million

Other Services includes the cost of the contractor providing services to the regional RTC card, $ 0.4 million which is reimbursed by 75% to AC Transit for being the Lead Agency of said program

Fuel and Lubricants

Staff is assuming market price trends prevailing as of late April 2014 as per futures for the derivative most commonly used to price diesel fuel. The number of miles operated has been set at 22.2 million Total Operated Miles. Current yields in terms of miles per gallon are better than previously budgeted levels and are expected to remain stable in the very short run, if not continue improving due to the systematic introduction of the new fleet in service as well as better maintenance performance in the retiring fleet.

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Fleet reliability and operating performance are assumed to continue improving while the new bus fleet is commissioned to service, counteracting the impact of consumption of bus parts and supplies due to increased maintenance needs of the remaining fleet as it continues aging and requiring more significant repairs. The Operations area is executing a Maintenance Operations Improvement Implementation Plan rolled out in late 2012 under the leadership of the Chief Operations Officer and the Director of Maintenance. This initiative is generating significant labor productivity improvements, better control of bus part costs per mile, reduced levels in stock of parts and supplies and improved fleet mechanical reliability.

Utilities and Taxes

Telecommunication expenses have decreased due to tighter controls and closer scrutiny of consumption in particular cellular phones communication costs. Electricity, Gas and Telecommunications utility expenses are expected to grow by the general inflation rate, while electricity consumption has been reduced with new solar panels / PV technology installations at D4 and D6. Water expenses are expected to remain under scrutiny due to the negative impacts on the State water supply caused by the ongoing severe drought.

Casualty and Liability costs

The Adopted Budget has projected stable insurance premium costs due to Accident Reduction Program initiatives that were started in late 2012 as part of a major effort to significantly reduce the number of incidents and claims, and the consequent costs, by improving adherence to safety and customer oriented service practices, which have been endorsed by the insurance carriers.

Interest Expense

This item includes the costs related to the following financing transactions: The cost of the COPS debt service related to the general office building, The financing costs associated with COPS related to the acquisition of the new FHR system,

and, Interest expenses associated with the COPS issued to finance the acquisition of the 66th Avenue

facility.

35


ADA Consortium and Dumbarton Bridge Purchased Transportation Costs

The ADA Consortium line item represents the District share (69%) of the total costs of operating the joint venture with BART to provide specialized Paratransit services. The softness in demand and associated lower billable hours charged to the Consortia has allowed Staff to expect the cost of this program to remain approximately $ 0.8 million lower than the previous year budget. The Dumbarton Bridge Purchased Transportation costs are basically funded in their entirety by revenues specifically allocated by MTC; therefore, it represents a cost neutral proposition from the General Fund perspective.

Other Expenses

These expenses include items that were also projected based on specific programs and activities by each of the operating departments. The most significant allocations were related to: The biennial Board of Directors Election process, which is allocated a $ 1.3 million appropriation Leases and rental of certain equipment used in transportation activities and office management Travel and meeting costs that are under the direct supervision of the General Manager Dues, subscriptions, employee incentives and other miscellaneous operating costs

District Funded Capital Program

Staff will discuss the Capital Budget program assumptions in a separate section.

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FY2014/15 Authorized Positions by Department5/28/2014

DepartmentAuthorized FTEs

FY12/13Authorized FTEs

FY13/14 @ Mid‐YearAuthorized FTEs

FY14/15

General Manager 8 8 7

District Secretary 2 2 3

Office of the General Counsel 14 14 14

Operations 515 516 513

Planning & Development 52 43 44

Performance 46 57 65

Technology 31 35 35

Human Resources 25 26 27

Finance 35 34 34

Retirement 3 3 3

Non‐Operators Total 731 738 745

Operators 1136 1156 1156 **

Total Positions 1867 1894 1901

* FTE ‐ Full Time Equivalent** It is anticipated that the Service Enhancement Plan will result in 20 additional operators.

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Operators 1136 1156 1156 **

Maintenance 377 377 380

Clerical 57 54 51

Salaried 297 307 314

Total 1867 1894 1901

* FTE - Full Time Equivalent** It is anticipated that the Service Enhancement Plan will result in 20 additional operators.

Authorized FTEs FY12/13

Authorized FTEs FY13/14 @ Mid‐Year

Authorized FTEs FY14/15

Position SummaryAC Transit FY2014/15 Budget Development Process

38

FY2014/15 Authorized Position Changes

Department Job Title FTEs

District Secretary Executive Administrative Asst. 1

Operations - Maintenance Database Administrator Elipse/HASTUS 1

Operations - Transportation Transportation Supervisor - Video 1

Capital Projects Project Manager 1

Planning & Development Senior Schedule Analyst -2

Procurement Contract Services Manager 1

Procurement Parts Clerk 3

Human Resources Sr Human Resources Admin 1

7

* It is anticipated that the Service Enhancement Plan will result in 20 additional operators

FY2014/15 Total Authorized FTEs

39

AC TRANSITFY 2014-15 ADOPTED OPERATING BUDGET - GENERAL FUND, BUDGETARY BASIS

5/28/2014

FY1213 Act

Gral Fund,

Budgetary Basis

FY1314 Adopted

Mid Year

Operating

Budget

FY1415

Adopted

Operating

Budget

May 28, 2014

Adopted

FY1415 Fav /

(Unfav)

Change vs

FY1314 Mid

Year

% change

Fav /

(Unfav)

CONSOLIDATEDRevenues

Operating 65,440,767 66,600,262$ 68,846,570$ 2,246,308$ 3.4%

Subsidies 280,524,042 270,620,065$ 275,518,950$ 4,898,885$ 1.8%

Total Revenues 345,964,809 337,220,327 344,365,520 7,145,193 2.1%

Operating Expenses

Total S&W 104,886,756$ 110,445,502$ 113,266,315$ (2,820,814)$ -2.6%

Fringe Benefits 77,837,261$ 81,573,652$ 85,454,738 (3,881,086)$ -4.8%

Pension Contrib, Normal Cost 15,963,835$ 17,801,000$ 15,831,604$ 1,969,396$ 11.1%

PEPRA 0 -$ -$ N/A

Baseline Labor Costs 198,687,852$ 209,820,154$ 214,552,658$ (4,732,504)$ -2.3%

UAAL Pension Amortization 23,049,000$ 23,948,000$ 23,948,000$ -$ 0.0%

Contracts and labor agreements -$ 974,881$ (974,881)$ N/A

Total Labor Costs $ 221,736,852 233,768,154$ 239,475,538$ (5,707,384)$ -2.4%

District's Operating Expenses

to be Capitalized $ (884,695) (1,000,000)$ (2,000,000)$ 1,000,000$ -100.0%

Services 20,596,421$ 22,474,859$ 23,708,768$ (1,233,909)$ -5.5%

Fuel and Lubricants 18,613,380$ 19,147,833$ 18,060,679$ 1,087,154$ 5.7%

Other Materials and Supplies 13,910,845$ 15,765,348$ 14,811,202$ 954,146$ 6.1%

Utilities and Taxes 5,566,600$ 5,928,865$ 6,127,987$ (199,122)$ -3.4%

Casualty and Liability 11,528,753$ 10,090,000$ 10,000,000$ 90,000$ 0.9%

Interest Expenses 1,324,017$ 1,234,902$ 1,139,943$ 94,960$ 7.7%

ADA and DB purchased transp 26,754,351$ 27,011,513$ 26,210,513$ 801,000$ 3.0%

Other Expenses 2,905,132$ 1,026,897$ 2,605,378$ (1,578,481)$ -153.7%

Total Operating Expenses 322,051,656$ 335,448,370$ 340,140,008$ (4,691,637)$ -1.4%

Service Enhancement Plan 2,101,787$ (2,101,787)$ N/A

CONSOLIDATED Operating

Surplus / (Deficit) $ 23,913,153 $ 1,771,957 $ 2,123,725 351,769$ 19.9%

40

AC TRANSITFY1415 ADOPTED OPERATING REVENUE BUDGET

LAST YEAR THIS YEAR NEXT YEAR

FY 2013 Actuals

FY 2014 Mid-Year Budget

FY 2015 Adopted

Operating Revenue Budget May 28

$ %REVENUES AND SUBSIDIESOperating1.a Farebox 51,434 53,000 55,650 2,650 5.0%1.b Contract Services 5,602 5,600 5,600 - 0.0%2 BART Transfers 2,460 3,600 3,600 - 0.0%3 Interest Income 72 50 70 20 40.0%4 Advertising 1,819 1,919 1,977 58 3.0%5 Other Revenue 3,729 2,081 1,940 (141) -6.8%6 Rental Income 324 350 350 - 0.0%7 Other Operating Revenues 8,404 8,000 7,937 (63) -0.8%

8 Total Operating Revenues 65,440 66,600 69,187 2,587 3.9%

Subsidies9 Transportation Develop. Act (TDA) 53,980 57,543 60,128 2,585 4.5%10 AB 1107 34,812 35,850 37,643 1,793 5.0%11 Measure B 24,657 24,000 26,000 2,000 8.3%12 State Transit Assistance (STA) 10,071 11,379 9,730 (1,649) -14.5%13 Measure J 3,978 4,347 4,475 128 2.9%14 Total Sales-Tax based Subsidies 127,498 133,119 137,976 4,857 3.6%

15 Property Taxes 79,360 76,500 79,942 3,442 4.5%16 Measure AA/BB/VV 29,439 29,241 29,241 - 0.0%17 Total Property Taxes Subsidies 108,799 105,741 109,183 3,442 3.3%

18 ADA Paratransit Fund (inc. fares) 6,043 5,922 5,812 (110) -1.9%19 Federal Assistance (ADA) 2,476 3,988 4,107 119 3.0%20 ADA Paratransit Vehicles 1,088 1,433 1,476 43 3.0%21 Total ADA related Subsidies 9,607 11,343 11,395 52 0.5%

22 Fed Assis - Prev Maint. 7,657 - - - 23 Capital Funds Exchange - - - 24 Total Prev Maint & related Subs 7,657 - - -

25 Supplemental Service 2,000 2,225 2,225 - 0.0%26 Labor Reimbursement 2,469 1,821 1,800 (21) -1.2%26.a BART Escrow Acct - 2,722 - (2,722) -100.0%27 RM2 subsidies, DB local assist 12,808 12,660 12,600 (60) -0.5%

29 Federal Assistance Section 5307 Capital Funding - - - 31 TPI - - - 32 Lifeline STA JARC, AB664, other 9,686 989 - (989) -100.0%34 Total Other Federal, State Local 26,963 20,417 16,625 (3,792) -18.6%

34 Total Subsidies 280,524 270,620 275,179 4,559 1.7%

35 Total Revenues and Subsidies 345,964 337,220 344,366 7,145 2.1%

Change Fav / (Unfav) FY2015 over FY 2014

Mid Year

41

FY14/15 Budget DevelopmentTotal District5/28/2014

Category Account Account Name FYE 12/13 ActualsFY13/14 Mid-Year Budget

FY14/15 Adopted Budget

S&W 50101 Operators Regular Time 49,202,699 50,886,453 52,548,302 *50105 Operators Premium Time 8,384,992 8,670,980 8,426,26450106 Operators Holiday Time 937,695 971,375 1,021,37250110 Maintenance Regular Time 17,774,237 18,643,588 19,481,06950115 Maintenance Overtime 1,035,620 1,249,414 1,015,00050116 Maintenance Holiday Time 145,692 179,277 184,65650120 Clerical Regular Time 4,057,194 4,070,353 2,953,953 *50125 Clerical Overtime 268,944 205,855 231,82550126 Clerical Holiday Time 38,941 38,270 37,42850130 Salaried Regular Time 22,670,662 25,025,491 26,919,26250135 Salaried Overtime 329,512 339,983 351,18350136 Salaried Holiday Time 40,568 96,000 96,000

S&W Total 104,886,755 110,377,039 113,266,315Fringe Benefits 116,850,096 123,403,115 125,234,342Services 50301 Management Service Fees 619,631 647,000 447,000

50307 Translink Expenses 798,080 1,012,038 1,000,00050308 Professional and Technical Services 3,371,083 5,960,409 5,787,32950309 Richmond Parkway 36,121 50,000 50,00050315 Claims Administration 1,171,970 1,218,974 1,255,54350317 Outside Attorney 757,705 693,000 865,00050320 Physicals 139,867 139,183 139,18350330 Non-Lawyer Legal 38,350 75,000 75,00050335 Audit Fees 250,000 250,000 250,00050340 Temporary Help 998,629 13,000 98,00050342 Outside Repair Services 630,884 848,947 717,64750345 Contract Maintenance Services 2,134,952 2,126,982 2,275,85750350 Custodial Services 9,725 1,50050355 Security Services 9,059,780 8,950,369 9,582,665

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Services 50357 Outside Training Services 60,564 161,179 547,70050360 Printing Services 184,812 323,179 358,16850365 Help Wanted Advertisement 13,744 15,000 15,00050370 Hazardous Waste 199,421 200,000 200,00050375 Laundry 116,091 130,000 130,00050380 Towing 219,276 200,000 200,00050390 Other Services 136,950 190,000 467,75350399 PASSTHRU EXPENDITURES 282,500.00

Services Total 21,230,136 23,204,259 24,463,344Materials & Supplies 50401 Front Axle 44,541 46,305 43,805

50402 Rear Axle 376,747 321,235 315,83550404 Brakes-Brake Lining 1,332,702 1,314,640 1,303,17250405 Clutch 4050406 Cooling System 906,642 1,003,304 925,68950407 Electrical 1,045,331 1,096,945 1,032,21050408 Engine 2,141,974 2,343,378 2,038,91550411 Frame 1,764 1,577 1,57750412 Fuel System 1,583,462 1,374,441 1,295,61750414 Air Suspension 319,537 328,629 320,41950416 Steering 165,057 150,389 148,29650417 Transmission 1,314,238 1,446,985 1,342,97450418 Propeller Shaft 189,013 153,014 148,01450419 Wheel-Bearings 68,711 58,135 55,50650421 Passenger Seats 1,931 1,93150424 Body Parts 1,566,376 1,662,152 1,659,48450425 Glass & Plastics (68) 4,032 4,03250426 Air Conditioning 150,195 146,008 145,00850430 Air Brake/Door Control 617,555 560,563 543,027

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Materials & Supplies 50432 Ball/Roll/Idle Bearings 6,566 1,525 1,52550435 Fuel/Oil/Water Elements 66,092 61,078 61,07850436 Flex Lines & Fitting 27,161 34,979 34,97950437 Gasoline 355,376 362,000 360,00050438 Diesel Fuel 17,330,696 17,379,299 16,612,67950439 Motor Oil 434,000 452,974 385,47450440 Automotive 100,032 119,202 119,20250441 Tire & Tubes-Coaches 2,258,239 2,267,932 2,267,93250442 Tires/Tubes 17,834 19,443 19,44350443 Hardware 495,375 569,491 604,37650444 Shop Materials 83,296 83,855 83,85550445 Clean/Paint Supplies 327,739 268,641 268,60450446 MFG Equip/Tools < $1,000 6,618 12,361 12,36150447 Lubricants 304,016 335,268 210,69150448 Hydrogen Fuel 189,292 466,868 500,00050450 Building Supplies 95,657 72,803 70,08450451 GFI Genfare Farebox Materials 79,184 59,228 55,25450453 Elec Dest Sign Mtls 80,051 93,625 85,10950455 E & H Lift Material 166,287 174,076 171,03250457 Radio Parts 53,357 103,533 103,53350460 Stationery Supplies 253,379 339,756 283,62150461 Office Furn/Equip < $1,000 (3,208) 50,491 57,40050462 Postage 88,318 100,795 96,98950463 Printing Supplies 121,987 92,964 151,81650468 Timetables 126,579 162,218 170,78550470 Price Variance Expense (32,579)50471 Inventory Adjustment (38,320)50474 Safety/Medical Supplies 19,712 23,855 24,021

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Materials & Supplies 50475 Coveralls & Coats 14,709 11,213 12,30250480 EDP Materials 20,674 29,111 37,11150490 Standard Price Postings (121,114) 99,769 100,00050495 Misc Supplies 288,337 341,297 330,11550497 Freight-In 46,362 45,000 50,00050498 Tranfers Tickets 68,652 80,000 80,00050499 Warranties (2,325) 0

Materials & Supplies Total 35,151,850 36,328,310 34,746,881Utilities 50501 Telephone 521,545 680,000 713,000

50505 Electric & Gas 1,449,620 1,350,000 1,250,00050510 Water 211,913 175,000 175,00050515 Biogas 49,760 303,500 300,00050520 Scavenger Services 180,170 176,507 176,507

Utilities Total 2,413,008 2,685,007 2,614,507Liability 50601 Insurance Premium 4,743,251 4,700,000 4,800,000

50602 Public Liability & Other Expenses 58950605 Loss Recoveries (586,470)50641 Casualty/Liability Costs 6,371,417 4,690,000 4,500,00050642 Property Damage 999,966 700,000 700,000

Liability Total 11,528,753 10,090,000 10,000,000Taxes 50701 Property Taxes 17,338 17,400 17,400

50702 Assessment Fee 316,820 356,175 373,99050705 Vehicle License and Registration 7,503 12,610 13,09050710 Fuel and Lubricant Taxes 166,816 160,000 170,00050715 Use Tax 2,567,927 2,735,000 2,800,00050720 Hazardous Waste Tax 9,372 10,000 10,00050725 Permits 67,816 86,370 129,000

Taxes Total 3,153,592 3,377,555 3,513,480

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Purchased Transportation 50802 Purchased Transport - ADA Consortium 23,439,262 23,373,513 22,573,51350803 ADA Consortium-Other 70,407 138,000 138,00050804 Paratransit Miscellaneous Expenses 682,514 900,000 900,00050806 Dumbarton Purchased Transportation 2,562,167 2,599,000 2,599,000

Purchased Transportation Total 26,754,351 27,010,513 26,210,513Miscellaneous 50901 Dues and Subscriptions 261,948 314,468 367,720

50905 Travel and Meetings 124,100 214,617 310,61050910 BART Tickets 311 591 60050915 Bridge/Tunnel/Hwy Tolls 6,145 7,000 7,00050920 Fines & Penalties (88) 050925 Bad Debt 146,03750930 Employee Incentive 4,003 61,600 101,00050940 Election of Directors 870,807 1,343,00050945 Cash Over & Short 500 50050955 Vendor Discounts 16,179 20,000 20,00050960 Ad/Promo Media Fees 53,929 128,379 130,50050970 Bank Charges 46,611 50,000 50,00050990 Other Miscellaneous Expenses (25,535) 100 10050991 Misc Marketing Expense (0) (0)

Miscellaneous Total 1,504,448 797,254 2,331,030Expense Transfer 51001 Remanufactured Inventory (2,627,625) (1,725,333) (1,875,000)

51002 Functional Expense Reclassifications (633,715) (600,000) (754,576)51005 Labor Contra to Capital (884,695) (1,000,000) (2,000,000)

Expense Transfer Total (4,146,036) (3,325,333) (4,629,576)Interest Expense 51105 Interest Expense 1,324,017 1,234,902 1,139,943

51115 Discount Amortization 0Interest Expense Total 1,324,017 1,234,902 1,139,943

Leases and Rentals 51201 Leases and Rentals 225,258 265,749 274,349

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Leases and Rentals Total 225,258 265,749 274,349(Gain)/Loss On Sale of Assets 51610 (Gain)/Loss On Sale of Assets 1,175,428 0

(Gain)/Loss On Sale of Assets Total 1,175,428 0Grand Total 322,051,656 335,448,370 339,165,127Service Enhancement Plan 2,101,787 Contracts & Labor Agreements 974,881

Total Adopted Operating Expense Budget 342,241,795

* The New Bus Operator (NBO) Program is reflected in 50101 Operators Regular Time in the FY14/15 Adopted Budget, as opposed to 50120 Clerical Regular Time in FY12/13 and FY13/14.

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Capital Program

48

FY 2015 ADOPTED CAPITAL BUDGET

Category Project Description District Federal State Local Grand Total

Fleet Replacement & Expansion (25) 40ft Urban Hybrid Bus - 15,460,000 3,865,000 19,325,000 Fleet Replacement & Expansion (40) 40ft Urban Diesel Bus - 14,720,000 3,680,000 18,400,000 Fleet Replacement & Expansion (15) 40ft Expansion Buses - 5,520,000 1,380,000 6,900,000 Fleet Replacement & Expansion Non Revenue Fleet Replacement 300,000 300,000 Facilities & Maintenance D3 Major Rehabilitation - 13,360,000 4,640,000 18,000,000 Facilities & Maintenance OCC Relocation (D2 to CMF) - 2,200,000 800,000 3,000,000 Facilities & Maintenance D6 Roof Replacement 198,000 462,000 660,000 Facilities & Maintenance GO- Fire pipe corrosion repair 87,000 203,000 290,000 Facilities & Maintenance Training Education Ctr Parking Lot Gate 99,000 231,000 330,000 Facilities & Maintenance Boardroom Enhancements 250,000 250,000 Facilities & Maintenance Districtwide Hazardous Waste Awng 60,000 60,000 Facilities & Maintenance Districtwide Pigeon Abatement 105,000 105,000 Facilities & Maintenance Maint Equipment > $1,000 120,000 120,000 Facilities & Maintenance Facilities Equipment Replacement 130,000 130,000 Facilities & Maintenance Automated Extnl Defibrillator 120,000 120,000 Facilities & Maintenance Emergency Facilities Maintenance 200,000 200,000 Facilities & Maintenance Finance Equipment > $1,000 10,000 10,000 Technology Storage Area Network Replacement 750,000 750,000 Technology Upgrade PeopleSoft Version 9.2 970,000 970,000 Technology IS Equipment Replacements 185,000 185,000 Systemwide Enhancements Transbay Terminal Capital Contribution 7,000,000 2,148,000 9,148,000 Systemwide Enhancements Contra Costa Coll Transit Ctr (Match) 165,000 165,000 Systemwide Enhancements 211 Marketing NF (Match) 10,000 10,000 Systemwide Enhancements Richmond Parkway Transit Center - 3,000,000 3,000,000 Systemwide Enhancements San Leandro Bart Terminus - 321,000 321,000 Adjustments (27) 60ft BRT Bus (1,368,794) 1,534,424 165,630 Adjustments CAD/AVL (1,350,777) 16,160,000 (13,566,249) 1,242,974 Adjustments Fareboxes / SGR - 1,940,000 (1,940,000) - Adjustments Major Corridor Study 411,200 (411,200) - Adjustments D4 Chiller Replacement 2,424,000 (2,424,000) -

TOTAL 10,874,629 68,955,224 1,006,751 3,321,000 84,157,604

Federal, $68,955,224 , 82%

State, $1,006,751 , 1%

Local, $3,321,000 , 4%

District, $10,874,629, 13%

FY 2015 Adopted Capital Budget by Fund Source

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FY 2014‐15 Adopted Budget Funding Priorities Fleet Replacement & Expansion ($44.9 million) – This Capital Budget Category consists of revenue and non‐revenue vehicle replacements, and vehicle expansion. Revenue vehicle replacements are the District’s top priority to ensure efficient and effective service to its many riders. The current budget includes $37.7 million in funding for the replacement of 65 VanHool 1000 series vehicles with 40 40‐foot diesel buses and 25 40‐foot hybrid buses. It also includes $300,000 for the replacement of non‐revenue vehicles. Finally, it includes $6.9 million for the procurement of 15 40‐foot diesel buses to serve as a fleet expansion. This expanded fleet will be used to achieve the operational goals set forth in the Comprehensive Operations Analysis. Facilities and Maintenance ($23.3 million) – This Capital Budget Category consists of two large facilities projects and several miscellaneous facilities upgrades at various divisions. The current budget includes $18 million for the rehabilitation of the Richmond Operating and Maintenance Division (D3). Staff budgeted additional state funds beyond the necessary local match for the D3 project to ensure that it can begin design as soon as possible in FY 2015. It also includes $3 million for the relocation of the Operations Control Center (OCC). The OCC needs to be relocated to ensure connectivity with the fiber network necessary to optimally operate the pending BRT project as well as the pending upgrade to the District’s Computer Aided Dispatch/Automatic Vehicle Locator (CAD/AVL) project. Finally, it includes $2.2 million for miscellaneous facility projects to upgrade facilities (e.g. Division 6 Roof Replacement), increase safety (e.g. Training Education Center Parking Lot Gate), ensure compliance, replace equipment, and rehabilitate various facilities. Technology ($1.9 million) – This Capital Budget Category consists of two important technology projects and Information Services equipment replacement. It includes $750,000 for the replacement of the Storage Area Network that connects all the District file servers and $950,000 for a PeopleSoft version upgrade. The remainder of the funds is for normal end‐of‐life equipment replacements. System‐wide Enhancements ($12.6 million) – This Capital Budget Category consists of various system‐wide enhancements. It includes $9.1 million for a portion of our contribution to the Transbay Transit Center Phase 1 project. The District has a commitment to provide $38 million to Phase 1 before it opens in December 2017, and has provided $14.1 million to date. This addition would bring that total to $23.2 million. The District intends to make similar contributes over the next two fiscal years to meet its commitment. Also included are local match funds for the Contra Costa College Transit Center upgrade and the Marketing Mobility Management through 211 projects. An additional $321,000 in Measure B funds are included for the $4 million San Leandro Bart Terminus project, which integrates with the East Bay Bus Rapid Transit project. It further includes $3 million towards the upgrade of the Richmond Parkway Transit Center. Adjustments – The Capital Budget includes several adjustments to existing capital project funding to ensure that federal funding is being used to its maximum potential, and that state funding from the Prop 1B PTMISEA program be used as local match in lieu of District funds. All projects included in the adjustments are currently fully funded and remain fully funded after the adjustments.

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Federal Funding Sources

Fund Source Fund Source Description Amount

FTA Section 5307

A program authorized by Moving Ahead for Progress in the 21st Century (MAP‐21), the Urbanized Area Formula Fund Program (49 U.S.C. 5307) makes Federal resources available to urbanized areas and to States for transit capital, operating assistance, and for transportation related planning. The Federal Transit Administration (FTA) administers the program. The Metropolitan Transportation Commission (MTC) programs these funds to the 12 urbanized areas in the region through its Transit Capital Priorities process. MTC’s 15‐year Core Capacity Challenge Grant Program, adopted in December 2013 through Resolution 4123, will allow AC Transit access to federal funds for capital projects that achieve regional state of good repair and transit expansion goals including vehicle replacement and expansion, and facility rehabilitation and replacement.

$68,955,224

Total Federal Funds $68,955,224

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State Funding Sources

Fund Source Fund Source Description Amount

PTMISEA The Public Transportation Modernization, Improvement, and Service Enhancement Account Program (PTMISEA) was created by Proposition 1B, the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006. Under the bond $3.6 billion was apportioned to the PTMISEA program. These funds may be used for transit rehabilitation, safety or modernization improvements, capital service enhancements or expansions, bus rapid transit improvements, and rolling stock procurement, rehabilitation or replacement. The funds are administered by Caltrans.

($1,141,249)

TSSSDRA The Transit System Safety, Security & Disaster Response Account (TSSSDRA) was created by Proposition 1B, the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006. Under the bond $1 billion was apportioned to the TSSSDRA program. These funds may be used for capital projects that provide increased protection against a security and safety threat, and for capital expenditures to increase the capacity of transit operators to develop disaster response transportation systems that move people, goods, and emergency personnel and equipment in the aftermath

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Adopted Budget - AC Transit...Jun 24, 2014 · Alameda-Contra Costa Transit District David J....

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