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SANTA CLARA VALLEY TRANSPORTATION AUTHORITY (VTA) RECOMMENDED BUDGET FISCAL YEAR JULY 1, 2002 through JUNE 30, 2003

VTA 2002-2003 Recommended Budget

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Page 1: VTA 2002-2003 Recommended Budget

SANTA CLARA

VALLEY TRANSPORTATION AUTHORITY (VTA)

RECOMMENDED BUDGET

FISCAL YEAR

JULY 1, 2002 through JUNE 30, 2003

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2002 Board of Directors Judy Nadler General Manager Ron Gonzales Mayor Peter M. Cipolla Chairperson City of Santa Clara VTA Board of Directors General Counsel Mayor Manuel Valerio Suzanne Gifford City of San Jose Council Member City of Sunnyvale Board Secretary Jane P. Kennedy Sandra Weymouth Vice-Chairperson Forrest Williams VTA Board of Directors Council Member Chief Administrative Council Member City of San Jose Officer City of Campbell Kaye L. Evleth Board Member Alternates Blanca Alvarado Francis La Poll Chief Construction Supervisor Mayor Officer Santa Clara County City of Los Altos Jack Collins Board of Supervisors Jim Lawson Chief Development Cindy Chavez Council Member Officer Council Member City of Milpitas Michael P. Evanhoe City of San Jose Pete McHugh Chief Financial Officer David Cortese Supervisor Scott Buhrer Council Member Santa Clara County City of San Jose Board of Supervisors Chief Operating Officer Frank T. Martin Pat Dando Joe Pirzynski Council Member Council Member Controller City of San Jose Town of Los Gatos Jerry Rosenquist Don Gage Ken Yeager Budget Department Chairperson Council Member Victor Chan Santa Clara County City of San Jose Liza Chuapoco Board of Supervisors Christine Huynh Ex-Officio Pauline Man Dena Mossar James Beall, Jr. Jim McCutchen Vice Mayor Chairperson, Metropolitan Linda Schwartz City of Palo Alto Transportation Commission (MTC) Thomas Springer Mayor John McLemore City of Gilroy MTC Representative Council Member City of Santa Clara

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TABLE OF CONTENTS Page General Manager’s Budget Message.......................................................................... i I. Introduction Budget Resolution ............................................................................................. 1 Executive Summary .......................................................................................... 4 Vision, Mission, and Strategic Plan ................................................................. 5 Current Operations............................................................................................ 7 II. Operating Budget Operating Budget............................................................................................... 15 Budget Policies, Practices, and Methodologies ............................................. 18 Major Budget Assumptions and Explanations............................................... 21 III. Division Budgets FY 2001-02 Accomplishments & FY 2002-03 Goals ....................................... 37 Office of the General Manager ......................................................................... 45 Office of the General Counsel .......................................................................... 49 Operations:

Administration ............................................................................................. 51 Transportation ............................................................................................. 57 Maintenance ................................................................................................. 61 Administrative Services .................................................................................... 65 Construction....................................................................................................... 69

Development & Congestion Management ..................................................... 73 Congestion Management Program and Highway Development & Administration .……….………………………………….……………….. 80

Planning & Development and Marketing & Customer Services ............ 82 Fiscal Resources ................................................................................................ 85

Other.................................................................................................................... 90 IV. Capital Budget Introduction........................................................................................................ 91 Capital Budget Schedule................................................................................... 92 Major Transit Capital Programs....................................................................... 93 1996 Measure B Transportation Improvement Program .............................. 98

2000 Measure A Transit Improvement Program ........................................... 106 Other Programs ................................................................................................. 108 Other Projects .................................................................................................... 109

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

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D. Ten Year Summary of Santa Clara County Employment Information ...... 126 E. Projects Closed or Scope Reduced by Capital Improvement Program

Oversight Committee ............................................................................................... 127 F. FY 2002-03 Capital Budget Summary ................................................................ 131 G. Additional Information on Non-Revenue Vehicle Purchase.......................... 134 H. FY 2002-03 ATU Pension Fund Expenditure Plan ........................................... 135 I. Fee Schedules.............................................................................................................. 136 Glossary ............................................................................................................................... 140

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GENERAL MANAGER’S BUDGET MESSAGE

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

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

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

Peter M. Cipolla General Manager April 30, 2002

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Resolution No.

RESOLUTION OF THE BOARD OF DIRECTORS OF THE SANTA CLARA VALLEY TRANSPORTATION AUTHORITY (VTA)

ADOPTING THE ANNUAL BUDGET OF VTA FOR FISCAL YEAR 2002-2003

WHEREAS, on or before May 3, 2002, the General Manager presented the Santa

Clara Valley Transportation Authority Fiscal Year 2002-2003 Recommended Budget to the Board of Directors and mailed a copy to each City Manager and Mayor in the County of Santa Clara and to the County Executive; and

WHEREAS, additional copies of the Recommended Budget were distributed to VTA’s Advisory Committee membership, libraries in Santa Clara County, Santa Clara County’s state and federal legislative delegation, senior and disabled groups, professional community organizations, and the media, and were available for perusal at VTA’s Downtown Customer Service Center, as well as libraries and city halls throughout the County; and

WHEREAS, the Recommended Budget includes all administrative, operational and capital expenses for the Congestion Management Program together with the apportionment of Congestion Management Program expenses by levy against each Member Agency to the extent necessary to fund the Congestion Management Program; and

WHEREAS, the Recommended Budget was reviewed by the Administration and Finance Committee on May 16, 2002, and on April 18, May 16, and June 6, by the Board of Directors at a public meeting; and

WHEREAS, a list of employee position classifications and pay ranges is included in the recommended budget as Appendix A, and the amount of funds budgeted for wages, salaries and benefits for Fiscal Year 2002-2003 is based upon VTA’s position classification and pay plan and is set forth in the Statement of Revenues and Expenses in the Recommended Budget; and

WHEREAS, the Board of Directors desires to adopt an annual budget for the Fiscal Year 2002-2003;

NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Santa Clara Valley Transportation Authority that the attached recommended budget for the Santa Clara Valley Transportation Authority (marked “Exhibit A” and incorporated herein as though set forth at length), as revised as shown on Exhibit B, is hereby adopted as VTA’s budget for the Fiscal Year 2002-2003.

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BE IT FURTHER RESOLVED that, effective July 1, 2002, positions may be authorized and filled, as required, by the General Manager and General Counsel, as appropriate, provided that total VTA-wide budgeted wages, salaries and benefits account is not exceeded.

BE IT FURTHER RESOLVED, that, as necessary for efficient administration, position classifications may be added, modified, or deleted and salary ranges adjusted with the approval of the General Manager or General Counsel, as appropriate, provided that the changes are in accordance with applicable VTA personnel policies and procedures and are consistent with pay practices in the transportation industry. Such changes shall include pay and classification adjustments arising from agreements between VTA and its recognized labor organizations.

BE IT FURTHER RESOLVED, that operating appropriations for major professional services for one time non-recurring programs or projects, which are not expended during the fiscal year, shall carryover to the successive fiscal years until the programs or projects are completed or terminated. Other operating appropriations shall lapse at year-end.

BE IT FURTHER RESOLVED, that capital appropriations, which are not expended during the fiscal year, shall carry over to successive fiscal years until the projects are completed or otherwise terminated.

BE IT FURTHER RESOLVED, that the budget shall consist of five Funds: the Transit Enterprise Fund, the Congestion Management Program Fund, the 1996 Measure B Transportation Improvement Program Fund, the 2000 Measure A Transit Program Fund and the Highway Improvement Fund. The General Manager may reallocate appropriations between budget units and cost groups within each Fund up to the limits of each Fund’s annual appropriation. Any net increase in authorized appropriations to any Fund (including an allocation from reserves) shall require an affirmative vote of at least eight Directors.

BE IT FURTHER RESOLVED, that the Recommended Assessments of member agencies for the Congestion Management Program are hereby approved.

PASSED AND ADOPTED by the Santa Clara Valley Transportation Authority Board of Directors on ___________, by the following vote: AYES: DIRECTORS NOES: DIRECTORS ABSENT: DIRECTORS

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

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SANTA CLARA VALLEY TRANSPORTATION AUTHORITY FISCAL YEAR 2002-03 BUDGET EXECUTIVE SUMMARY

FY 2000-01 FY 2002-03 % ChangeAdopted Revised from FY 01

Actual Budget Budget Budget Revised

Ridership (In 000's):Bus 47,238 48,800 44,200 43,600 -1.4%Light Rail 9,237 10,000 8,100 7,900 -2.5%Total Ridership 56,475 58,800 52,300 51,500 -1.5%

Service Miles (In 000's):Bus 22,640 23,479 21,037 21,174 0.7%Light Rail 1,927 2,088 2,080 1,832 -11.9%Total Service Miles 24,567 25,567 23,117 23,006 -0.5%

Positions * 2,540 2,863 2,920 2,596 -11.1%

Total Revenues 349,086$ 346,508$ 334,728$ 336,927$ 0.7%

Major Revenue Components:1/2 Cent Sales Tax 183,540$ 180,000$ 152,000$ 155,000$ 2.0%TDA 81,183 95,402 95,402 63,383 -33.6%Fares 31,724 33,586 29,875 34,500 15.5%

Total Expenses 269,747$ 337,382$ 344,411$ 341,825$ -0.8%

Major Expense Components:Wages & Benefits 182,197$ 214,462$ 222,665$ 227,888$ 2.3%ADA Paratransit 21,558 25,152 32,452 32,452 0.0%Material and Supplies 14,216 17,948 17,018 16,048 -5.7%Caltrain 13,021 14,300 14,300 14,105 -1.4%Security 7,304 9,313 9,726 9,473 -2.6%Other Services 8,706 8,666 9,063 7,883 -13.0%Professional Services 11,456 14,617 14,266 7,808 -45.3%Fuel 6,588 7,706 6,956 5,964 -14.3%ACE 1,522 5,100 5,100 5,100 0.0%

Operating Cost Recovery Ratio 15.8% 14.2% 12.9% 14.5%

Number of Projects:New Projects 33 49 12 -75.5%Augmented Projects 5 14 4 -71.4%Carryover Projects** 213 42 90 114.3%Total Number of Projects 251 105 106 1.0%

Gross Project Expenditures (In $000's)New Projects 61,281$ 63,318$ 4,668$ -92.6%Augmented Projects 76,010 116,785 2,848 -97.6%Carryover Projects** 954,492 764,603 944,904 23.6%Total Project Expenditures 1,091,783$ 944,706$ 952,420$ 0.8%

** Excluding Debt Service

FY 2001-02

OPERATIONS

REVENUES (In $000's)

EXPENSES (In $000's)

CAPITAL PROJECTS

* Excluding 70 partially funded operator positions in FY 2002-03.

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VISION, MISSION, AND STRATEGIC PLAN In September 1995, the Board of Directors adopted a vision and mission statement for the Santa Clara Valley Transportation Authority (VTA). This statement provides a framework for making future policy, planning and budgetary decisions. VISION STATEMENT The vision of the Santa Clara Valley Transportation Authority (VTA) is to provide a transportation system that allows anyone to go anywhere in the region easily and efficiently. This statement contains the long-range vision for VTA and portrays the desired future VTA seeks to achieve. The vision is regional, including both the immediate areas of Santa Clara County and the bordering Bay Area to which the County is linked economically, socially, and culturally. MISSION STATEMENT The mission of the Santa Clara Valley Transportation Authority (VTA) is to provide the public with a safe and efficient countywide transportation system. The system increases access and mobility, reduces congestion, improves the environment, and supports economic development, thereby enhancing quality of life. The mission or core purpose of VTA is to provide a “safe and efficient countywide transportation system.” The emphasis is on an integrated transportation system that comprises the full range of mobility options, from cars, buses, and rail systems to walking and bicycle trips. The system will allow members of the public to travel easily and comfortably to their destination by the most appropriate means. POLICY DIRECTIONS In adopting the vision and mission in 1995, the Board of Directors specified four key policy directions for VTA. In March 1999, the Board adopted a fifth policy direction related to the 1996 Measure A transportation program of projects. • Integrate transportation and land use • Use all transportation options • Create a safe, convenient, reliable and high-quality bus/rail operation • Build a regional perspective • In partnership with the County of Santa Clara, implement the 1996 Measure A

transportation program of projects

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STRATEGIC PLAN The Strategic Plan serves as the umbrella policy document for VTA and drives the Recommended Budget and other documents for which VTA has responsibility, such as the Short Range Transit Plan (SRTP), the Congestion Management Program (CMP), and the Countywide Transportation Plan. The goals set forth in the Strategic Plan are ambitious but attainable, and include mechanisms for measuring performance. The Strategic Plan contains VTA’s strategies for implementing the mission and achieving the vision. Five broad goal areas form the basis of the plan: • Enhance our customer focus • Improve mobility and access • Integrate transportation and land use • Maintain financial stability • Increase employee ownership The divisional goals contained in this budget are consistent with the broad goals established in the Strategic Plan. The Strategic Plan also includes a 10-year Business Plan for VTA. The Business Plan consists of a 10-year forecast of transit service levels, expenses, revenues, and specific performance measures with annual benchmarks for monitoring progress towards attaining our goals. VTA’s actual performance is analyzed each year against the performance measures, and the Business Plan is modified accordingly. VTA’s current Business Plan was released in the later part of 1998.

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CURRENT OPERATIONS The Santa Clara Valley Transportation Authority (VTA) is an independent public agency responsible for bus and light rail operation, regional commuter and inter-city rail service, ADA paratransit service, congestion management, specific highway improvement projects, and countywide transportation planning. As such, VTA is both an accessible transit provider and a multi-modal transportation planning and implementation organization involved with transit, roadways, bikeways, and pedestrian facilities. VTA provides transit services to the 326 square mile urbanized portion of Santa Clara County that is comprised of 15 cities and the County of Santa Clara with a total population of more than 1.7 million residents. A historical summary of the county population by city is presented in Appendix C. VTA operates 78 bus routes and two light rail transit (LRT) lines within this service area. In addition, VTA funds paratransit and privately operated shuttle services in the County and participates in providing inter-regional commuter rail and express bus services. All of the bus and rail vehicles are accessible for individuals with disabilities. In January 1995, VTA was designated as the Congestion Management Agency and changed from being exclusively a transit provider to an organization responsible for countywide transportation planning, funding, and congestion management within the County.

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

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Caltrain/Peninsula Corridor Joint Powers Board (PCJPB) Caltrain is the commuter rail service provided by the PCJPB, which is governed by representatives from San Francisco, San Mateo, and Santa Clara counties. It operates between Gilroy and San Francisco. Seventy-six trains operate between San Jose Diridon Station and San Francisco each weekday, with 65 of these trains extended to the Tamien Station in San Jose where a connection can be made to the LRT system. Connection to the LRT system can also be made at the Mountain View Caltrain Station. Eight peak-hour weekday trains (four northbound in the morning and four southbound in the evening) extend Caltrain from Tamien station to Gilroy. There are 33 stations along the line. The system uses diesel-powered locomotives. The funding share of the operating costs apportioned to each member agency is based upon morning peak period boardings that serve in each county, currently about 41% for VTA. Altamont Commuter Express Rail Service The Altamont Commuter Express (ACE) rail service provides peak hour, weekday commuter rail service from the Central Valley to Santa Clara County (three morning and three afternoon commuter trains). VTA, the San Joaquin Regional Rail Commission, and the Alameda County Congestion Management Agency administer the service under a Joint Exercise of Powers Agreement. The 85-mile rail line includes ten stations located in Stockton, Lathrop, Tracy, Livermore (2), Pleasanton, Fremont, Great America, Santa Clara and San Jose Diridon Station. VTA provides free shuttles to transport ACE riders between the Great America and San Jose Diridon stations and nearby employment sites. The funding share of the operating costs apportioned to each participating county is based upon the proportional share of total daily boardings and alightings that occur in each county (currently about 43% for VTA). Capitol Corridor Intercity Rail Service The Capitol Corridor Intercity Rail service began in December 1991 and is a 170-mile train corridor from Auburn and Sacramento to San Jose, through Placer, Sacramento, Yolo, Solano, Contra Costa, Alameda and Santa Clara Counties. Operating on the Union Pacific railroad tracks, Capitol Corridor service consists of four daily round trips from Sacramento to San Jose and five daily round trips from Sacramento to Oakland with connecting bus service to and from San Jose. One round trip per day extends beyond Sacramento to Auburn. The train service parallels the Interstate 80 corridor between Sacramento and Oakland, and Interstate 880 between Oakland and San Jose. Service includes stops in Roseville, Sacramento, Davis, Suisun/Fairfield, Martinez, Richmond, Berkeley, Emeryville, Oakland, Hayward, Fremont, Santa Clara at Great America, and San Jose Diridon Station. On July 1, 1998, the Capitol Corridor Joint Powers Authority (CCJPA), which is comprised of representatives from the eight counties served by the corridor, assumed responsibility for the service. Under contract with the CCJPA, the Bay Area Rapid Transit District (BART) manages the service and Amtrak operates the service on tracks owned by Union Pacific Railroad. The funding is provided by the State of California.

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

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CONGESTION MANAGEMENT VTA, as the Congestion Management Agency for Santa Clara County, is responsible for coordinating and prioritizing projects for state and federal transportation funds, administering the Bay Area Air Quality Management Program, and coordinating land use and other transportation planning. 1996 MEASURE B TRANSPORTATION IMPROVEMENT PROGRAM (MBTIP) In November 1996, the voters in Santa Clara County overwhelmingly approved Measure A, an advisory measure listing an ambitious program of transportation improvements for Santa Clara County. Also approved on the same ballot, Measure B authorized the County Board of Supervisors to collect a nine-year half-cent sales tax for general county purposes. Subsequently, the County Board of Supervisors adopted a resolution dedicating the tax for Measure A projects. Collection of the tax began in April 1997; however, use of the revenue was delayed pending the outcome of litigation challenging the legality of the sales tax. In August 1998, the California courts upheld the tax allowing the implementation of the Measure A transportation projects to move forward. In February 2000, the VTA Board of Directors approved a Master Agreement formalizing our partnership with the County of Santa Clara to implement the 1996 Measure B Transportation Improvement Program. With this partnership in place, the County and VTA are in a position to complete a transportation program valued at over $1.7 billion. VTA will be responsible for project implementation and management of the transit and highway projects and will assist in the administration of the pavement management and bicycle elements of the program. A more detailed description of the program elements can be found in Section IV. 2000 MEASURE A TRANSPORTATION IMPROVEMENT PROGRAM In August 2000, the VTA Board of Directors approved placing a measure on the November 7, 2000, General Election ballot allowing Santa Clara County voters the opportunity to vote on transportation improvements funded by a 30 year half-cent sales tax to take effect after the 1996 Measure B sales tax expires (March 31, 2006) in the county. More than 70% of the voters approved the 2000 Measure A. It is estimated that $6.8 billion (FY 2001 constant dollars) will be collected. The revenue from this Measure may be used to finance the transit projects and operations specified in 2000 Measure A and listed in VTA’s VTP 2020 Transportation Plan and Expenditure Program. VTP 2020 provides for a balanced transportation system consisting of transit, roadway, bicycle and pedestrian improvements. The activities specified in 2000 Measure A are: • Connect BART to Milpitas, San Jose, and Santa Clara; • Build a rail connection from San Jose International Airport to BART, Caltrain, light

rail; • Purchase vehicles for disabled access, senior safety, clean air buses;

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• Provide light rail throughout Santa Clara County; • Expand and electrify Caltrain; and • Increase rail and bus services. Staff is currently developing the implementation details of the program for adoption by the VTA Board of Directors. At this time, several key capital projects have already been created. A more detailed description of the program elements can be found in Section IV.

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Board of Directors

General ManagerPeter M. Cipolla

General CounselSuzanne Gifford

OperationsFrank T. MartinChief Operating

Officer

Fiscal ResourcesScott Buhrer

Chief FinancialOfficer

AdministrativeServices

Kaye L. EvlethChief Administrative

Officer

ConstructionJack Collins

Chief ConstructionOfficer

Development/Congestion

ManagementMike Evanhoe

Chief DevelopmentOfficer

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FY 2000-01 FY 2002-03

Actual Adopted Budget

Revised Budget Budget

Fares 31,724$ 33,586$ 29,875$ 34,500$ 15.5%1/2 Cent Sales Tax 183,540 180,000 152,000 155,000 2.0%TDA 81,183 95,402 95,402 63,383 -33.6%STA 4,263 7,681 7,681 7,322 -4.7%Federal Operating Grants (1) 17,787 7,504 23,285 31,900 37.0%State Operating Grants 942 1,355 1,355 1,766 30.3%Investment Earnings 22,078 10,850 15,000 12,000 -20.0%Advertising Income 4,079 4,608 4,608 4,589 -0.4%Financing Transactions - - - 16,320 NAOther Income - Sale of Property - - - 5,000 NAOther Income 3,490 5,522 5,522 5,147 -6.8%Total Revenue 349,086 346,508 334,728 336,927 0.7%

Wages & Salaries 115,960 136,197 143,267 144,768 1.0%Benefits 66,237 78,265 79,398 83,120 4.7%Materials & Supplies 14,216 17,948 17,018 16,048 -5.7%Security 7,304 9,313 9,726 9,473 -2.6%Professional & Special Services 11,456 14,617 14,266 7,808 -45.3%Other Services 8,706 8,666 9,063 7,883 -13.0%Fuel 6,588 7,706 6,956 5,964 -14.3%Traction Power 2,083 3,297 4,997 4,000 -20.0%Tires 881 1,084 1,084 1,049 -3.2%Utilities 1,786 2,364 2,364 2,353 -0.5%Insurance 1,473 3,273 3,273 4,262 30.2%Data Processing 2,957 3,617 3,796 3,124 -17.7%Office Expense 887 846 783 787 0.5%Communications 1,202 1,882 1,882 1,750 -7.0%Employee Related Expense 1,307 2,459 2,381 1,671 -29.8%Leases & Rents 557 828 715 739 3.4%Contingency - 10,423 1,500 5,000 233.3%Miscellaneous 992 2,790 2,209 1,916 -13.3%Reimbursements (13,089) (15,594) (14,927) (16,750) 12.2%Operating Expense 231,503 289,981 289,751 284,965 -1.7%

ADA 21,558 25,152 32,452 32,452 0.0%Caltrain 13,021 14,300 14,300 14,105 -1.4%Caltrain Capital Contribution (2) - - - 2,500 NALight Rail Shuttles 1,065 1,439 1,439 1,340 -6.9%Altamont Commuter Express 1,522 5,100 5,100 5,100 0.0%Highway 17 Express 482 564 564 587 4.1%Dumbarton Express 143 197 197 250 26.9%Contribution to Other Agencies 348 501 501 440 -12.2%Other Expense 105 148 107 86 -19.6%Other Expense 38,244 47,401 54,660 56,860 4.0%

Total Expense 269,747 337,382 344,411 341,825 -0.8%

Debt Service 8,760 27,537 24,537 25,268 3.0%

Surplus/(Deficit) to Reserves 70,579$ (18,411)$ (34,220)$ (30,166)$ -11.8%

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

SANTA CLARA VALLEY TRANSPORTATION AUTHORITYFISCAL YEAR 2002-03 PROPOSED BUDGET

STATEMENT OF REVENUES AND EXPENSES

In thousands

FY 2001-02 % Change from FY 02

Revised

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

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

FY 2001-02 and FY 2002-03 Budgetary Reserve Ending Balance Estimates (In Thousand dollars)

Reserves/Working Capital as of 2/28/02 $231,244 FY 2001-02 Revenue Projection 334,205 FY 2001-02 Expense Projection (344,410) Less February Year-to-Date Actual:

Revenue 207,189 Expense (212,199)

Reserves Consumed by Operations (5,195) Reserves Committed for Local Share of Capital Projects as of 2/28/02 (183,928) Projected Uncommitted Budgetary Reserves as of 6/30/02 $42,121

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Projected Uncommitted Budgetary Reserves as of 6/30/02 $42,121 FY 2002-03 Preliminary Budget: Revenues 336,927 Expense (341,825) Debt Service (25,268) FY 2002-03 Preliminary Deficit (30,166) Local Share of New Capital Projects (4,759) Projected Uncommitted Budgetary Reserves as of 6/30/03 $7,196 BUDGET POLICIES, PRACTICES, AND METHODOLOGIES This budget consists of five funds: the Transit Enterprise Fund that accounts for VTA’s regular operations, the Congestion Management Program, the 1996 Measure B Transportation Improvement Program, the 2000 Measure A Transit Program Fund, and the Highway Improvement Fund. The budget for the Transit Enterprise Fund is developed on an accrual basis. Revenues are recognized when earned, and expenses are recognized when incurred. The Congestion Management Program is budgeted on a modified accrual basis of accounting. The 1996 Measure B Transportation Improvement Program, the 2000 Measure A Transit Improvement Program and the Highway Improvement Fund is budgeted as capital projects, which are based upon total expected completion costs. Originally, the FY 2002-03 operating budget development proceeded using the modified-base budget approach, same as in previous year. Basically, we used last year’s adopted budget as the baseline for the development of the current budget. One-time major items were subtracted from, and mid -year budget modifications and significant adjustments were added to the Adopted Budget. Then a 4.0% cost escalation factor representing inflation was applied as appropriate to the non-labor expense items. Labor-related expenses were increased according to the terms of the collective bargaining agreements. The result became the Baseline Budget - the extent to which VTA must commit resources to continue its current level of operations. For selected major cost items, such as fuel expenditure, we developed the budgets using a zero-based budgeting approach. New activities or programs were submitted as supplemental budget requests and they were added to the Baseline Budget. Finally, we made projections of our revenues – especially the half-cent sales tax – based on the latest information. Project managers submitted their new capital project and augmentation requests to the Capital Improvement Program Oversight Committee (CIPOC), which is composed of senior management and supporting staff from the Operations, Construction, Development/Congestion Management and Fiscal Resources divisions, for approval. However, the resulting preliminary FY 2002-03 operating budget indicated a deficit in excess of $90 million. Coupled with the new FY 2002-03 capital project requests, we reached the conclusion that VTA would not only exhaust the budgetary reserves we have

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accumulated in the last few years when sales tax receipts were bountiful, we would have a huge negative reserve by the end of FY 2002-03. Realizing the severity of the situation, management decided that immediate and decisive actions had to be taken to attack the problem. We approached the problem in three phases: 1. A comprehensive review of all current and requested capital projects by CIPOC -- As

a result of this cost reduction review, we have either closed or reduced the scope of 158 projects. The total savings was $70.7 million to VTA.

2. A 15% budget reduction for administrative and support cost centers – all department managers were requested to reduce their non-salary expenditure in the FY 2002-03 Baseline Budget by 15%.

3. A programmatic review by senior executives – Without eliminating/reducing programs, activities, services or tasks, and decreasing headcounts, managers could not achieve the 15% reduction goal by merely trimming budget costs and improving efficiency. Recognizing this fact, we instituted a 5% service reduction and hiring freeze. In addition, we implemented a zero-based budgeting process – managers had to justify the programs and activities performed in their cost centers, and resources needed to fund them individually and separately. Three senior executives formed a panel to review these justifications. Consequently, many programs or services were either eliminated or curtailed. More than 300 position reductions (both vacant and filled positions) are proposed in this budget.

We will watch our financial health closely in FY 2002-03. If conditions warrant, additional reductions might be required. On the other hand, if our financial situation improves, we will recall our laid off employees and increase service levels as soon as possible. The proposals will be forwarded to the Board for approval in the FY 2002-03 Mid-Year Budget Review. BUDGET PROCESS FY 2002-03 will be a difficult year and so has been its budget development process. We had to deviate from our regular budget process in mid-stream in reaction to the economic downturn. Last September, we started the FY 2002-03 operating and capital budgeting process by developing the major budget assumptions such as the inflation rate, benefit rates, and sales tax receipts. After review by VTA senior management, the key assumptions were submitted to the Administration and Finance Committee and the Board of Directors for approval. In September and November respectively, the Budget Department sent out capital and operating budget preparation packages to the departmental managers. All capital project requests were submitted to CIPOC in October. CIPOC thoroughly reviewed all requests and presented their recommendation to senior management in January. The departmental managers returned their completed baseline budgets, supplemental budget requests, and other forms in December 2001.

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

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MAJOR BUDGET ASSUMPTIONS AND EXPLANATIONS

REVENUES Regional Economic Growth – Half-Cent Sales Tax and TDA The half-cent local sales tax and a quarter-cent state sales tax (also known as the Transportation Development Act or TDA) are the two most important income sources to VTA. About 64.8% (80% in the last few years) of VTA’s operating revenues are generated from them. They are driven by the local economy. Besides being the prime source of our operating income, sales tax revenues are extremely important to us because our ability to raise revenue from other sources is very limited. The quarter-cent sales tax is derived from the same tax base as the half-cent sales tax but it is collected by the State, and the proceeds are administered and allocated by the Metropolitan Transportation Commission (MTC). VTA receives the TDA funds through the County of Santa Clara. The cash flow fluctuates differently from the half-cent tax because the annual receipts are based on forecasts, which are adjusted in subsequent years for over-funding or under-funding in prior years. Although we anticipated the “burst of the high-tech economic bubble” for the last few years, we, along with nearly everyone else, were surprised by the suddenness and severity of the resulting economic slowdown. Santa Clara County lagged the nation in experiencing the full impacts. As the rest of the nation now appears poised for economic recovery, Santa Clara County continues to post job losses. On March 18, 2002, we received our sales tax data for the second quarter of FY 2001-02. The receipts were 24.5% less than the same quarter last year – $7.6 million less than the forecast. In the FY 2001-02 Mid-Year Budget, we revised our sales tax down to $152.0 million or approximately $31.5 million less than FY 2000-01 actual receipts of $183.5 million. When we factor in the effects that will ultimately show up in our Transportation Development Act funds, (which is essentially a state levied one quarter

Yearly Sales Tax Receipts

1975

1980

1985

1990

1995

2000

2002 *

2003 *

*$0

$50

$100

$150

$200

In $

Mill

ions

0%

10%

20%

30%

-10%

-20%

Yearly %

Change

ReceiptsYearly % Change

* FY 2002 Revised ** FY 2003 Recommended

Fares

Other

Half-Cent Sales Tax

TDA

Federal GrantsFinancing Transactions

10.2%

10.6%

46.0%

18.8%

9.5%4.8%

REVENUE SOURCES

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cent sales tax), the impact translates to a decline of over $45.0 million in our annual revenue stream. Although we have seen some encouraging national economic data lately, the current environment in our County remains very challenging. In light of the new data, we project our FY 2002-03 half-cent sales tax receipts forecast to be $155.0 million, or a 2.0% increase over the current revised budget. According to MTC, VTA’s TDA funds will decrease to $63.4 million, a 33.6% reduction below the FY 2001-02 allotment due to the recession. Ridership and Fares Ridership has decreased substantially in recent months due primarily to the large number of jobs lost over the last year. There is a clear and direct correlation between ridership and employment -- ridership drops when employment declines. Since we do not expect a quick recovery in the job market in this County, ridership will remain low next year. Together with our 5% service reduction plan in FY 2002-03, we expect ridership to decrease by 1.5% to 51.5 million. VTA has a stated policy of implementing a fare review every two years. We have not conducted one in three years. Although fares contribute about 10.0% of our total revenues, (which is defined differently than farebox recovery ratio) fares are the only source of revenue that we can influence to any extent. In times of financial difficulties, we cannot ignore its contribution to fund our operations. We expect that the proposed fare modifications can enhance our general revenues by $4.6 million, or 15.5%, from the FY 2001-02 Revised Budget. Nearly all Bay Area transit agencies are also proposing fare increases. We believe that our fare proposal is reasonable and necessary. Because of our larger discounts on multi-ride fare instruments, VTA will continue to have one of the lowest average fare per boarding in the Bay Area. We need to increase fares and reduce service levels at the same time because doing only one of them will impose greater and disproportionate hardship for our riders. We believe that our current proposal represents a balanced compromise.

Correlation Between Ridership and Employment

Jan 20

00 MarM

ay Jul

Sep Nov

Jan 20

01 MarMay Ju

lSep Nov

Jan 20

02

0%

5%

10%

15%

20%

-5%

-10%

-15%

Sam

e M

onth

Pri

or Y

ear

% C

hang

e

Weekday System-Wide RidershipSanta Clara County Employment

Quarterly Sales Tax Receipts

FY 97

Q1

FY 98

Q1

FY 99

Q1

FY 00

Q1

FY 01

Q1

FY 02

Q1

$0

$10

$20

$30

$40

$50

$60

In $

Mill

ions

0%

10%

20%

30%

-10%

-20%

-30%

Quarterly %

Change

Quarterly ReceiptsQtr over Qtr % Change

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

changes at this time (providing $9.7 million for Replacement Buses and $13.5 million for Preventative Maintenance). This application is expected to be approved August/September, 2002.

FY 1998-99 FY 1999-00 FY 2000-01 FY 2002-03

Actual Actual Actual Adopted Budget

Revised Budget Budget

Ridership:Bus 47,487 47,008 47,238 48,800 44,200 43,600 % Change -1.0% 0.5% 3.3% -6.4% -1.4%Light Rail 6,863 7,914 9,237 10,000 8,100 7,900 % Change 15.3% 16.7% 8.3% -12.3% -2.5%Total Ridership 54,350 54,922 56,475 58,800 52,300 51,500 % Change 1.1% 2.8% 4.1% -7.4% -1.5%

Total Revenue 27,201$ 30,622$ 31,724$ 33,586$ 29,875$ 34,500$ % Change 12.6% 3.6% 5.9% -5.8% 15.5%

Average Fare Per Boarding 0.50$ 0.56$ 0.56$ 0.57$ 0.57$ 0.67$ % Change 12.0% 0.0% 1.8% 1.8% 17.5%

In thousands

FY 2001-02

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

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

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Leasing and U.S. Bancorp Leasing and Financial. Vehicles will be released on a schedule that coincides with the receipt of the new low-floor light rail vehicles. We have estimated that we will receive approximately $8.0 million during FY 2002-03 and an additional $6.0 million during FY 2003-04. The second financing transaction is associated with the new low-floor light rail vehicles. The transaction consists primarily of a Head Lease where VTA leases the vehicles to a trust and a Sublease where the trust leases the vehicles back to VTA. The net benefit is highly dependent on valuations of the assets, the remaining useful life and prevailing interest rates at the time the transaction closes. We anticipate that the first “tranche” of the transaction to close in the September or October timeframe in an approximate amount of $8.0 million. These financing transactions will be presented to the Board for approval later in the fiscal year, with more information of the risks and how the benefits arise at that time. Other Income State Transit Assistance (STA) is estimated at $7.3 million, a decrease of $359,000 or 4.7% from the current year. The $3.4 million increase in FY 2001-02 due to a state budget surplus created by the booming economy has not repeated as expected. Advertising revenue is projected to decrease slightly to a total of $4.6 million. It is comprised of two components: advertising on buses and light rail vehicles; and bus shelter advertising. In light of the ongoing weak advertising spending, it is possible that we might be slightly optimistic. We project interest income to decline to $12.0 million as we are drawing down on our reserves faster.

EXPENSES Inflation Rate The Consumer Price Index (CPI) is the gauge of inflation at the retail or consumer level. CPI reached an annual rate of 5.38% for the San Francisco-Oakland-San Jose region in 2001. It was the third consecutive year that the Bay Area had a rate above 4.0%. However, this trend is expected to be broken. As the economy in the Bay Area continues to deteriorate rapidly, inflation has finally cooled down. The

Monthly Consumer Price Index (January 1990 thru March 2002)

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

100

110

120

130

140

150

160

170

180

190

Bas

e Y

ear:

198

2-84

=100

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

Year-T

o-Year %

Change

SF-Oakland-San JoseU.S.-All ItemsSF-Oakland-San Jose Year-Over-Year % ChangeU.S.-All Items Year-Over-Year % ChangeJanuary

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

pay rate increases and pay progression in FY 2001-02; • $2.4 million increase in ATU pension in FY 2002-03; • $1.0 million increase for new additions in FY 2002-03; • $0.3 million increase for other; and • ($20.3) million decrease due to position reductions in FY 2002-03.

Budgeted Position Changes By Classification Classification FY 2001-02

Revised FY 2002-03

Budget Net

Change % Change

Operators 1,143 1,049 (94) (8.2%) Operators (Part-Time) 50 0 (50) (100.0%) Operator Trainees 27 3 (24) (88.9%) Maintenance 616 560 (56) (9.1%) Support Services 1,058 957 (101) (9.5%) Non-Transit 26 27 1 3.8% Total Funded Positions 2,920 2,596 (324) (11.1%) Partially funded Operators 0 70 70 NA Total Positions 2,920 2,666 254 (8.7%) Service Reduction We annually review our service plan and make the appropriate route and service adjustments. The decline in ridership, coupled with our financial difficulties, compelled us to reduce or discontinue services for some routes -- without increasing services in other routes, as we normally would have done, in the FY 2002-03 service plan. We need to concentrate our reduced resources on the more productive routes and services. We

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propose a 4.4% service reduction for buses and an 11.7% service reductions for light rail (by increasing the time between trains from ten minutes to twelve minutes), for a total reduction of 5.0% for the system. In general, the proposal includes: five bus lines to be discontinued; service frequency and service hour changes for 49 bus lines and Light Rail; and routing changes for eight bus lines. This 5% service reduction will decrease the needs for Bus Operators from 1,068 to 955 and Light Rail Operator from 100 to 96. The total savings for wages and benefits for the Operators is estimated at $8.3 million. In addition, there are corresponding savings in the Maintenance Division. They are: • Forty-nine positions (Service Workers, Service Mechanics, Transit Mechanics, and

Overhaul and Repair Mechanics) for $3.2 million; • Diesel for $328,000; • Traction power for $305,000; and • Parts for $685,000.

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

FY 1998-99 FY 1999-00 FY 2000-01 FY 2002-03

Actual Actual Actual Adopted Budget

Revised Budget Budget

Service Miles:Bus 22,400 22,924 22,640 23,479 21,037 21,174 % Change 2.3% -1.2% 3.7% -7.1% 0.7%Light Rail Train 1,360 1,651 1,927 2,088 2,080 1,832 % Change 21.4% 16.7% 8.4% 7.9% -11.9%Total Service Miles 23,760 24,575 24,567 25,567 23,117 23,006 % Change 3.4% 0.0% 4.1% -5.9% -0.5%

Light Rail Car 2,249 2,791 2,885 3,278 3,151 2,655 % Change 24.1% 3.4% 13.6% 9.2% -15.7%

Service HoursBus 1,566 1,624 1,617 1,687 1,603 1,538 % Change 3.7% -0.4% 4.3% -0.9% -4.1%Light Rail Train 89 113 137 141 138 122 % Change 27.0% 21.2% 2.9% 0.7% -11.6%Total Service Miles 1,655 1,737 1,754 1,828 1,741 1,660 % Change 5.0% 1.0% 4.2% -0.7% -4.7%

Light Rail Car 147 189 198 221 213 177 % Change 28.6% 4.8% 11.6% 7.6% -16.9%

In thousands

FY 2001-02

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

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

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

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

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

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

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

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

FY 1998-99 FY 1999-00 FY 2000-01 FY 2002-03

Actual Actual Actual Adopted Budget

Revised Budget Budget

ADA Trips 646 779 860 1,018 1,018 1,099 % Change 20.6% 10.4% 18.4% 18.4% 8.0%

ADA Operating Expense 14,510$ 16,443$ 21,558$ 25,152$ 32,452$ 32,452$ % Change 13.3% 31.1% 16.7% 50.5% 0.0%

Net Cost per Trip 22.46$ 21.11$ 25.07$ 24.71$ 31.88$ 29.53$ % Change -6.0% 18.7% -1.4% 27.2% -7.4%

In thousands

FY 2001-02

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

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FY 2001-02 ACCOMPLISHMENTS ADMINISTRATIVE SERVICES • Completion of the Project Controls Software Tools (PCST) project on time and on

budget. • Completion of the Data Center upgrade and consolidation project. • Completed upgrade of VTA.org website. • Improved internal IT controls regarding asset management, budget and expense,

purchasing and contracts. • Completed salary studies for remaining classes (a three-year project), thereby

bringing VTA salaries in line with the Santa Clara Valley market. • Successfully effected a consolidation and re-organization of work functions within

VTA. FISCAL RESOURCES • Implementation of a pre-qualification pilot program of VTA contractors and

subcontractors to ensure that all who parties engaged in business with VTA are responsible entities by looking at ways to apply “responsible bidder” criteria to subcontractors as well as prime contractors.

• Coordinated startup of Translink regional electronic fare card demonstration program on selected VTA services.

CAPITAL IMPROVEMENTS • Opened the Moffett Park Station on the Tasman West line in Sunnyvale, the first light

rail station constructed by a private developer, the Jay Paul Company. • Completed design for raising the Guadalupe platforms on the north line. • Temporary landings construction started on the Guadalupe platforms, allowing for

the operation of low-floor light rail vehicles on the system. • Completed construction of the Guadalupe Corridor Retrofit with fiber-optic

communication and the Power Sectionalization Project as scheduled. • Completed installation of ticket vending machines on the Guadalupe and Tasman

Light Rail Corridors. • Completed construction of North Division Reconstruction Project. • Started construction of Cerone O&R Division Improvements, Cerone ZEB

Demonstration Project, and Guadalupe LRV Facility Expansion. • Completed construction of the Gilroy Caltrain Transit Center, West Valley College

Transit Center, Moffett Park LRT Station and Eastridge Transit Center Improvements, Line 22 Bus Queue Jump Lane Phase 1 Project, and upgraded four bridges for the LRT Bridge Seismic Retrofit program.

• Improved 27 sites as part of the ADA Access Program, nine sites were improved under the Bus Stop Pavement Restoration Program, eleven bus stops were improved under the Line 22 Articulated Bus Improvements Program, and 29 sites were improved under the Monterey Bus Stop Improvements program.

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

1996 MEASURE B TRANSPORTATION IMPROVEMENT PROGRAM Transit Program: • Advertised and awarded contracts for the overhead contact system/traction power

system and the signal/communication systems for the Tasman East, Capitol and Vasona Light Rail Projects.

• Advertised, award and started construction in downtown San Jose railroad segment and on the Meridian/Highway 17 structures for the Vasona Light Rail Project.

• Resolved outstanding issues at the Hamilton Avenue light rail crossing, allowing for the award of the structures contract for the Vasona Light Rail Project.

• Completed construction on the pedestrian tunnel and the portion of the light rail tunnel within the Caltrain Yard at Diridon train station for the Vasona Light Rail Project.

• Property acquisition of UPRR Vasona railroad and operations of gated street crossings agreement.

• VTA, Caltrain and UPRR signed a construction and engineering agreement for the Caltrain Service Improvements Project.

• Design completed and construction to begin on the double track from Tamien Station to Lick Station on the Caltrain Service Improvements Project. Highway Program: • Began construction work on the following highway projects: (a) widening of I-880 in

north San Jose; (b) improvements to the Highways 85/87 Interchange in south San Jose; (c) widening of Route 101 in south San Jose and Morgan Hill; (d) improvements to the Route 85/101 (South) interchange in south San Jose; (e) an early utility relocation contract for the Route 237/I-880 Interchange project in Milpitas; (f) two “early delivery” projects on Route 17 in Campbell: 17H completed and 17D under construction.

• Began construction on the combined environmental mitigation site for the Measure B program on Coyote Creek in south San Jose.

• Completed the CEQA environmental approval for the Route 85/101 (North) Interchange project in Mountain View.

• Continued progress toward the completion of the environmental documents for all of the highway projects included in the Program.

2000 MEASURE A TRANSIT IMPROVEMENT PROGRAM • Selected a Preferred Investment Strategy for the Silicon Valley Rapid Transit Corridor

Study of BART along the UPRR Alignment option. • Completed Comprehensive Agreement between BART and VTA for a BART extension

into Milpitas, San Jose and Santa Clara. • Continued the conceptual studies for the Downtown East Valley Project.

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MARKETING • Held over 70 community meetings to promote and obtain input on capital projects. • Developed a program to include design enhancements for VTP 2020 projects, and

developed bylaws for the VTP 2020 Design Enhancements Committee. • Selected fourteen artists to design and fabricate CODE projects for 1996 Measure B

Highway and Rail projects. • Served over 550,000 telephone-based Customer Service requests. • Included over 10,000 new employees to the employer-based Eco Pass program. OPERATIONS ADMINISTRATION

• Implemented a new Attendance Program for ATU represented employees. The program provides incentives for employees who report to work on time on a daily basis. It also provides for a disciplinary process for employees who incur absences.

• Started the implementation of the Closed Circuit Television (CCTV) Surveillance program with the delivery of 52 low-floor buses, the retrofit of 94 buses of the current fleet, and on 20 low-floor light rail vehicles.

• Improved security at multi-modal transfer centers in response to the national call for heightened security.

• Conducted a comprehensive review and revision of the Light Rail Standard Operating Procedures (SOP’s). Established a new Bus Rules and Procedures Development committee to review, modify and institute Rules and Procedures for the VTA system.

• Identified, designed and instituted new wayside system signage (Bell, Low Noise Zone, Stop and No Trespassing) to improve operational safety on the Guadalupe and Tasman lines.

• The VTA Rail Activation methodology instituted to activate the Tasman Line I-880 extension was cited by the CPUC as the “model” for all state rail activation efforts.

• Installed the Advanced Communications System project including new Operations Control Center, new fleet wide radio system with GPS tracking capability, automated next stop annunciation, and automatic passenger counters. Completed system will come on-line by the end of 2002.

• Began approval process with VTA Board of Directors and participating cities/county for the 200 shelter expansion as part of Transit Shelter Advertising Program.

• Implemented 2nd cycle of FTA grant-funded Job Access/Reverse Commute Project and successfully obtained funding for 3rd cycle of funding.

• Maintained compliance with ADA Paratransit requirements, with year-to-date ridership increasing 18.2% over prior year. Completed the implementation of requirements under the FTA Voluntary Compliance Key Station Plan Agreement.

• Developed the FY 2002/2003 Transit Service Reduction Plan, including community meetings, and CEQA process and presentations to various city councils.

MAINTENANCE

• Accepted and placed 136 low-floor Gillig buses into revenue service. • Received 20 new low-floor light rail vehicles and 20 new 60-foot low-floor articulated

buses from New Flyer of America, Inc.

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• Awarded a contract for the purchase of three hydrogen fuel cell buses a contract for the installation and maintenance of a hydrogen fueling station.

• Completed the installation of Yield to Bus Signs on all buses in revenue service. • Completed the second class of the Transit Mechanic Training Program and continued

the Orientation Training Program for all new Service Mechanics. Implemented the new Light Rail Electro Mechanic Training Program.

• Installed 35 new engines on the 9200 series buses to reduce particulate matter emissions.

• Completed Phase I construction of the new North Operating Division facility. The new Operations and Maintenance building, which accommodates up to 150 buses (including the 40 articulated buses), is now operational. Started Phase II construction that includes the fuel island, bus wash, fencing, pavement and old building demolition.

TRANSPORTATION

• Implemented a Back to Basics Program in the Transportation Department to promote the provision of safe, reliable, and customer friendly services. The Back to Basics Program has three components: Safety, Customer Service and Operational procedures and efficiency. The Program includes on going management and operator communications to insure compliance. Initial focus has been placed on safety and customer service issues to include seatbelt usage, schedule adherence, use of electronic equipment, and calling of major intersections and stops.

• Established a Service Management Unit responsible for ensuring that service is delivered in a safe, efficient, and reliable manner by coordinating the following functions: radio control, field supervision, dispatch, and field maintenance.

FY 2002-03 GOALS

ADMINISTRATIVE SERVICES • Continue to reduce overall IT costs through:

o Complete knowledge transfer from consultants to VTA employees, and then releasing consultants on schedule to achieve planned cost savings.

o Centralization of IT management and activity. • Continue to focus on retention and recruitment of qualified employees. • Successfully negotiate equitable labor agreements with the:

o Transportation Authority Engineers and Architects’ Association. o Service Workers Local 715 Service Employees International Union, AFL-CIO.

Santa Clara Valley Transportation Authority Chapter. o County Employees Management Association Santa Clara Valley Transportation

Authority Chapter. FISCAL RESOURCES • Enter into a subleasing transaction involving VTA’s Light Rail vehicles to Salt Lake

City and Sacramento Regional Transit District.

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• Develop long range plans with sustainable financial capacity. • Develop a review process for finding and achieving the efficiencies and effectiveness

of VTA’s services in conjunction with the Business Review Team. • Acceptance of the State Uniform Certification Program (UCP) recently approved by

the U.S. DOT (Department of Transportation). VTA representatives participated during a three-year period at a statewide level working on the creation and implementation of this program. Now, small businesses seeking DBE certification can apply with one certifying agency (VTA being one of few in the Bay Area) and, when approved, will be included in a statewide database. California’s program was one of the first approved by the DOT.

CAPITAL IMPROVEMENTS • Complete construction of projects in the Facilities Improvement Program including,

Guadalupe LRV Facility Shop Expansion, Parts Storage Building and MOW Building Improvements, the Cerone O&R Division Improvements Project, and the Cerone ZEB Demonstration Project.

• Begin construction of Guadalupe platform modifications to accommodate low-floor light rail vehicles.

• Advertise and award Light Rail System T-Signals Retrofit Project, which will retrofit T-signals with the new Manual of Uniform Traffic Control Devices on the Guadalupe and Tasman Light Rail Corridors.

• Improve an additional 19 sites for the Bus Stop Restoration Program. • Complete construction of the Palo Alto Depot Renovation and De Anza College

Transit Center. • Complete construction on the LRT Station Signage Project and the Morgan Hill

Repeater Station. • Implement the Facilities Modification Program per Operations and other divisions’

requests. 1996 MEASURE B TRANSPORTATION IMPROVEMENT PROGRAM Transit Program: • Advertise and award station contracts for the Vasona Light Rail Project. • Complete construction of the San Jose Diridon light rail tunnel for the Vasona Project. • Continue construction of the Vasona Light Rail Project as scheduled and budgeted. • Complete the major Tasman East civil/structural and the civil/trackwork contracts

and award the stations/park and ride contract. • Award the Capitol Light Rail Stations contract. • Construction completed on the double track from Tamien Station to Lick Station for

the Caltrain Service Improvements Project. • Define the Gilroy south expansion and implement design on the Gilroy station and

storage tracks for the Caltrain Service Improvements Project. • Start construction on four of the 1996 Measure A/B Caltrain Improvement Program

projects to include: Lawrence Bus/Shuttle & Parking Expansion; Palo Alto Transit

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Center Improvements; San Martin Parking Expansion Phase Two; and Santa Clara Parking & Bus Expansion.

Highway Program: • Open Route 101 to four lanes in each direction by completion of construction on

Route 101 Widening contract and interim milestone of Route 85/101 South Interchange contract.

• Complete construction on the following contracts: (a) Route 237/I-880 Interchange Stage C Phase 1; (b) Route 17 D and Route 17 I; (c) Route 152 Phase A1.

• Continued construction on I-880 Widening and Route 85/87 Interchange contracts. • Begin construction on the following contracts: (a) Route 85/101 North Interchange;

(b) Route 237/I-880 Interchange Stage C Phase 2; (c) Consolidated Biological Mitigation Site Phase 2

• Continued progress toward environmental approval and design completion for all remaining highway projects in program.

2000 MEASURE A TRANSIT IMPROVEMENT PROGRAM • Begin Conceptual Engineering and Final EIS/EIR for Silicon Valley Rapid Transit

Corridor. • Complete negotiations for UPRR Right of Way for Silicon Valley Rapid Transit

Corridor. • Develop new BART vehicle specification in conjunction with BART and the Warm

Springs extension. • Develop Project Management Plan for Silicon Valley Rapid Transit Project. • Prepare Requests for Proposals for engineering and program management services

for the Silicon Valley Rapid Transit Project. MARKETING • Continue community outreach efforts to the extent resources allow for all capital

projects in the planning/environmental and construction phases. • Increase ridership on VTA services targeting improvements in off-peak periods. • Maintain the Employer Eco Pass program at a ratio of 10% of the countywide

workforce. • Continue to add residential communities and residents to the Residential Eco Pass

program. OPERATIONS ADMINISTRATION

• Continue the expansion of the On Board Closed Circuit Television (CCTV) Surveillance program to include 84 new CCTV equipped low-floor buses and CCTV cameras at selected transit centers and multi-modal transfer centers. By June 2002, a total of 230 buses will be outfitted with CCTV surveillance systems.

• Conduct Bus and Light Rail Rules and Procedures Development Committee (RRPD & BRPD) meetings to review, modify and institute Rules and Procedures for the VTA system.

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• Lead and coordinate all Operations Division responses to active and proposed rail line extension plans, including detailed review of system design elements on Vasona, Capitol, Downtown-East Valley, and Silicon Valley Rapid Transit Corridor projects.

• Continue System Design review for all light rail projects including the Guadalupe Station Retrofit project.

• Perform all Bus and Light Rail Operator training. This includes new operator training, annual re-certification training, VTT training, Restricted Access training, Fire/Life Safety training, and numerous operations-related training.

• Complete Advanced Communications System project including final acceptance and start of warranty.

• Add new buses into service and overhaul existing buses for the Dumbarton Express. • Start construction of the 200 shelter expansion project. • Maintain compliance with ADA Paratransit requirements, improve the ADA

Paratransit Eligibility Review process and identify additional ADA Paratransit funding sources.

• Monitor VTA’s bus and light rail operations, and maintain an efficient and effective network design, operating schedules, and operator run assignments. Initiate a Transit Route Improvement Program that assesses route directivity, service coverage by time of day, stop spacing, operational improvements, and local community needs. Incorporate improvements into FY 2004 Transit Service Plan.

• Develop Bus/Rail Integration plans for the Tasman East/Capitol Light Rail Line.

MAINTENANCE

• Miles between mechanical schedule loss:

o Bus -- 4,000 miles

o Light Rail – 40,000 miles

o System – 4.300 miles

• Manage the contract for the construction and commissioning of 40 articulated low-floor buses from New Flyer, and accept and put into service 56 new low-floor buses from Gillig.

• Complete construction projects at the North Division and at the Guadalupe Division main shop, WP&S locker room, and warehouse. Complete the master plan study and start construction of the Operations, and Training Annex buildings, reconfiguration of the Maintenance Engineering office and the ISG Disaster Recovery Center.

• Complete installation of the hydrogen fueling station at the Cerone Division. • Continue to participate in the California fuel cell partnership. • Develop contract documents for the procurement of a demonstration fleet of Zero

Emission Buses and provide engineering support in the development of special fueling systems and other facilities needed to support this fleet. Also develop and implement programs for bus engine overhaul and upgrade to ensure compliance with emission regulations.

• Continue the purchase and installation of new engines for the 9200 Bus Series Repower Program to reduce particulate matter emissions.

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• Demonstrate technology that has the potential to reduce NOx emissions by 70% or more on three buses operating in revenue service over a three-year period. The technology tested should reduce NOx emissions and demonstrate the durability of emission control systems.

• Graduate the third class and begin the fourth class of the Transit Mechanic Training Program and continue the Orientation Training Program for all new Service Mechanics.

• Manage the contract for the construction and commissioning of 100 low-floor light rail vehicles from Kinkisharyo ,and accept and place into revenue service 32 low-floor light rail vehicles.

• Manage a contract for a system-wide wheel/rail interface study and develop a long-term wheel and rail maintenance strategy.

• Manage a consultant contract to evaluate VTA’s contracting strategy for electric power and develop recommendations for a more economical approach to the procurement of electrical power.

• Complete the Kinkisharyo low-floor light rail vehicle maintenance training for 50 Electro - Mechanics, six Electronic Technicians, and three Light Rail Vehicle Maintenance Supervisors to ensure proper maintenance and repairs for VTA’s new 100 low-floor light rail vehicle fleet.

TRANSPORTATION

• Percent of scheduled service operated:

o Bus – 99.25%

o Light Rail – 99.90%

• Miles between chargeable accidents:

o Bus – 160,000 miles.

o Light Rail – 2,000,000 miles.

o System – 175,000 miles.

• Complete review of all administrative procedures impacting lost time and revise policies as necessary.

• Conduct training to support implementation of Advance Communications Systems to support implementation of articulated buses at North Division. Complete back safe and injury avoidance training for all operators. Conduct training for all Transportation Supervisors and Dispatchers to improve operations.

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

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Board of Directors

Administration

2 Positions

Government AffairsKurt EvansManager

Board SecretarySandra Weymouth

Policy & ProgramFrank Sharpless

Manager

Positions:36 Full Time

Peter M. CipollaGeneral Manager

Chief of StaffDenise Daly

Board Office10 Positions

Record Management& Document Control

Tim Ellenberger Manager

19 Positions

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

FY 2000-01 FY 2002-03

In thousands Actual Adopted Budget

Revised Budget Budget

Wages & Salaries 1,571$ 2,285$ 2,305$ 2,152$ -6.6%Benefits 570 873 881 836 -5.1%Materials & Supplies 4 26 26 17 -34.6%Professional & Special Services 324 466 466 373 -20.0%Other Services 323 359 359 351 -2.2%Office Expense 109 29 29 30 3.4%Employee Related Expense 175 168 168 163 -3.0%Leases & Rents 133 143 143 148 3.5%Contingency - 10,423 1,500 5,000 233.3%Miscellaneous 364 499 499 462 -7.4%Other Expense - 32 32 34 6.3%Total Expense 3,573 15,303 6,408 9,566 49.3%Reimbursements (640) (61) (532) (131) -75.4%Net Total 2,933$ 15,242$ 5,876$ 9,435$ 60.6%

Positions 32 41 45 36 -20.0%

OFFICE OF GENERAL MANAGERFY 2001-02 % of

Change from FY 02

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OFFICE OF THE GENERAL COUNSEL RESPONSIBILITIES The General Counsel’s Office provides legal advice and counsel to all of the divisions and departments, as well as to the General Manager and the Board of Directors, with respect to all facets of VTA’s operations, including the Congestion Management Program. The office also retains and oversees outside counsel to provide specialized legal services, and retains counsel for workers’ compensation and public liability/property damage defense. MAJOR ACTIVITIES • Assist divisions and departments to achieve their goals by providing legal support to

handle labor/employment issues in a more efficient and timely manner. • Provide counsel to address legal issues, which arise in conjunction construction

projects. • Continue review and analysis of existing and proposed administrative policies and

procedures to ensure clarity, compliance with current laws, and administrative efficiency.

• Handle in-house, to the greatest extent possible, all litigation except bus and light rail accidents.

• Provide legal support to the VTA-ATU Pension Board and Deferred Compensation Committee.

Board of Directors

2 Support Positions

Assistant GeneralCounsel

Richard KatzmanKevin Allmand

4 Attorneys

Positions:9 Full-Time

Suzanne GiffordGeneral Counsel

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MAJOR BUDGETARY CHANGES No significant changes.

FY 2000-01 FY 2002-03

In thousands Actual Adopted Budget

Revised Budget Budget

Wages & Salaries 727$ 874$ 874$ 920$ 5.3%Benefits 220 334 334 359 7.5%Professional & Special Services 170 343 180 207 15.0%Office Expense 2 24 4 2 -50.0%Employee Related Expense 9 18 13 10 -23.1%Miscellaneous 19 7 24 24 0.0%Total Expense 1,147 1,600 1,429 1,522 6.5%Reimbursements (45) (271) (230) (282) 22.6%Net Total 1,102$ 1,329$ 1,199$ 1,240$ 3.4%

Positions 7 9 9 9 0.0%

OFFICE OF GENERAL COUNSELFY 2001-02 % of

Change from FY 02

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

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Service & OperationsPlanningMike Aro

Deputy Director

Frank T. MartinChief Operating

Officer

Administration4 Positions

OperationsPlanning

Jim Unites,Manager

10 Positions

Protective ServicesRay Frank

Chief of Security

Accessible ServicesGeorge Tacke',

Manager5 Positions

Service PlanningBill Capps,Manager

21 Positions

Administration2 Positions

TransportationTechnical Traiing &

Rail ActivationVacant, Manager

4 Positions

Administration4 Positions

Fare Inspection9 Positions

Sheriff's Contract

Security Contract

Positions:83 Full-Time

TransportationTechnical Training &

Rail ActivationAustin Jenkins

Deputy Director

OperationsTechnical Training

Bus13 Positions

OperationsTechnical Training

Rail7 Positions

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

FY 2000-01 FY 2002-03

In thousands Actual Adopted Budget

Revised Budget Budget

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

Positions 99 113 113 83 -26.5%

OPERATIONS - ADMINISTRATIONFY 2001-02 % of

Change from FY 02

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

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for ACE in FY 2002-03 from the these two respective agencies will be held at the FY 2001-02 level due to current economic conditions.

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OPERATIONS DIVISION – TRANSPORTATION RESPONSIBILITIES Transportation is responsible for the operation of VTA’s 78 bus routes, the 18-mile Guadalupe light rail line, which runs from South San Jose to North San Jose terminating at the Baypointe Station on Tasman Drive, and the 11.7-mile Tasman light rail line, which runs from Mountain View to I-880 in Milpitas. Over 1,100 operators provide more than 24,000,000 miles of bus and light rail service on an annual basis. Three bus operating facilities, one light rail facility, the Operations Control Center, and field supervision unit support transit operations. MAJOR PROGRAMS Bus Transportation consists of Cerone Transportation, Chaboya Transportation, and North Transportation. The section is responsible for the daily operations of VTA’s 78 bus routes. Rail Transportation consists of Guadalupe Transportation. The section is responsible for the daily operations of the Guadalupe and Tasman light rail lines. Service Management consists of the Field Supervision, Operations Control Center, and Dispatch units. The section is responsible for facilitating improved communication and efficiency among all units in the Operations Division.

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Matthew O. TuckerDeputy Director

Frank T. MartinChief Operating

Officer

Operations Control Center

John CarlsonAsst. Superintendent

36 Positions

NorthTransportation

Curt RaitzSuperintendent246 Positions

Field SupervisionMark Bugna, Kathy ReaAsst. Superintendents

31 Positions

GuadalupeTransportationChester PattonSuperintendent104 Positions

CeroneTransportation

Rich GoldaSuperintendent346 Positions

Administration9 Positions

ChaboyaTransportation

Carolyn StinematesSuperintendent413 Positions

Unfunded Positions70 Positions

Positions: 955 Full-Time Bus Operators 94 Full-Time LR Operators 138 Other Full-Time Positions 1,187 Total Funded Positions 70 Unfunded Position 1,257 Total Positions

Service ManagementPaul Googe

Superintendent2 Positions

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

FY 2000-01 FY 2002-03

In thousands Actual Adopted Budget

Revised Budget Budget

Wages & Salaries 51,444$ 59,111$ 59,569$ 60,906$ 2.2%Benefits 33,170 38,591 38,691 40,782 5.4%Materials & Supplies 105 170 170 179 5.3%Professional & Special Services 14 158 158 164 3.8%Other Services 46 21 21 22 4.8%Data Processing 41 - - - NAOffice Expense 80 92 92 100 8.7%Employee Related Expense 20 106 106 112 5.7%Leases & Rents 45 57 57 60 5.3%Miscellaneous 2 41 41 43 4.9%Other Expense - 30 30 35 16.7%Total Expense 84,967$ 98,377$ 98,935$ 102,403$ 3.5%

Positions 1,210 1,345 1,356 1,199 -11.6%

OPERATIONS - TRANSPORTATIONFY 2001-02 % of

Change from FY 02

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

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

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Materials Management consists of Bus Parts and Light Rail Parts. The section is responsible for the timely receipt, issue and management of bus and light rail parts inventory at all of VTA’s facilities (Cerone, Chaboya, North, Guadalupe). This section operates one main warehouse and three operating storerooms for bus parts and one main warehouse and one operating storeroom for rail parts. Maintenance Engineering consists of Bus Engineering, Rail Engineering, and Communications Systems Maintenance. Bus and Rail Engineering units are responsible for the management and administration of all revenue vehicle procurement contracts. These units are also responsible for all engineering activities relating to the bus fleet and the light rail system. The Communication Systems Maintenance unit is responsible for the maintenance of the voice telephone systems, all radio communication systems, closed circuit TV, card access systems and miscellaneous communication systems.

George BarlowDeputy Director

Frank T. MartinChief Operating

Officer

Bus MaintenanceManuel Martinez

General Supt.2 positions

Administration6 Positions

Bus Overhaul &Repair

Ciro Aguirre, Supt.94 Positions

Positions:741 Full-Time

FacilitiesMaintenance

Art Taylor, Manager2 positions

MaintenanceEngineeringChris Eichin

Manager2 positions

CeroneMaintenance

Mark Coffield, Supt.97 Positions

ChaboyaMaintenance

Jeffrey Flagg, Supt.105 Positions

NorthMaintenance

Heidi Samuels, Supt.71 Positions

LR VehicleMaintenance

Tom Kennedy, Supt.97 Positions

Way, Power &Signal

MaintenanceCurt Nicks, Supt.

79 Positions

FacilitiesMaintenance

Robert HalsteadCoordinator63 Positions

PassengerFacilities Maint.

Tony KellySupervisor

18 Positions

Rail MaintenanceEngineering

Tom IrionSr. Systems Eng.

4 positions

CommunicationsMaintenance

Bob Gave, Mgr.4 Positions

MaintenanceSupport Services

Jerry OxsenManager

2 Positions

Warranty & QualityAssurance

Cris CrisologoManager

10 Positions

NRV MaintenanceCarol Peterson

Coordinator6 Positions

MaintenanceTraining

Dwight BarnesSupervisor

18 Positions

MaterialsManagement

Glen Bolon, Mgr.12 positions

Bus Parts

30 positions

Light Rail Parts

8 positions

MaintenanceInformation Sys.Sharon McElligottSr. Mgmt. Analyst

4 positions

Bus MaintenanceEngineeringArt Douwes

Sr. Mechanical Eng.3 Positions

Rail MaintenanceRay Borge

General Supt.3 positions

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

FY 2000-01 FY 2002-03

In thousands Actual Adopted Budget

Revised Budget Budget

Wages & Salaries 32,313$ 37,130$ 39,785$ 40,365$ 1.5%Benefits 18,194 22,536 23,453 24,702 5.3%Materials & Supplies 14,723 16,916 16,069 15,347 -4.5%Professional & Special Services 52 574 594 545 -8.2%Other Services 3,745 4,614 4,595 5,081 10.6%Fuel 6,588 7,706 6,956 5,964 -14.3%Traction Power 2,083 3,297 4,997 4,000 -20.0%Tires 873 1,084 1,084 1,049 -3.2%Utilities 1,740 2,288 2,288 2,286 -0.1%Data Processing - 31 31 - -100.0%Office Expense 132 126 128 119 -7.0%Communications 1,135 1,828 1,828 1,746 -4.5%Employee Related Expense 113 358 352 308 -12.5%Leases & Rents 90 134 136 156 14.7%Miscellaneous 28 46 46 57 23.9%Other Expense 12 1 1 - -100.0%Total Expense 81,821 98,669 102,343 101,725 -0.6%Reimbursements (3,890) (3,858) (4,029) (4,012) -0.4%Net Total 77,931$ 94,811$ 98,314$ 97,713$ -0.6%

Positions 693 771 795 741 -6.8%

OPERATIONS - MAINTENANCEFY 2001-02 % of

Change from FY 02

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

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

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

Kaye L. EvlethChief Adminstrative

Officer

Risk ManagementNanci Eksterowicz

Manager16 Positions

Administration3 Positions

BenefitsShellie Albright

Manager18 Positions

Employee Relations &OrganizationalDevelopment

Candice A. GonzalezManager

17 Positions

PersonnelRobert Escobar

Manager21 Positions

Positions:136 Full-Time

Information TechnologyDepartmentRichard Kurk

Chief Information Officer60 Positions

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

FY 2000-01 FY 2002-03

In thousands Actual Adopted Budget

Revised Budget Budget

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

Positions 135 149 147 136 -7.5%

FY 2001-02 % of Change

from FY 02

ADMINISTRATIVE SERVICES DIVISION

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

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

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The Caltrain Service Improvement Program involves a number of service improvements for Caltrain in Santa Clara County. A $125 million program of projects is funded by 1996 Measure B Transportation Improvement Program, TCRP and RABA grants. Construction will begin in mid 2002 on double tracking various single-track areas between San Jose and Gilroy. Other projects include the improvement to Caltrain Stations and Park and Ride lots. 1996 Measure B Highway Projects: Most of these highway projects are under construction and will open from late 2003 through 2005. • Route I-880 – Widening from 4 to 6 lanes in San Jose • Route 85/87 – Interchange Completion in south San Jose • Route 101 – Widening from 4 to 6 lanes plus 2 HOV lanes -Morgan Hill/south San Jose • Route 85/101 (S) Interchange in south San Jose • Routes 237/880 Interchange Completion-Stage ‘C’ in Milpitas • Route 87 HOV lanes from Branham Lane to I-280 • Route 87 HOV lanes from Julian Street to I- 280 • Routes 85/101 (N) Interchange and HOV Direct Connector in Mountain View • Route 17 improvements • Route 152 safety projects • Route 85 noise mitigation 2000 Measure A Transit Improvement Projects: The Silicon Valley Rapid Transit Project is a 10 to 12 year design and construction effort estimated at $3.7 billion in 2001 dollars. The project is currently in the conceptual engineering, FEIS/FEIR phase. The Construction Division is assisting the Development and Congestion Management Division in reviewing design alternatives, project schedules, and cash flows. Also, the division will develop consultant requests for proposals and a project implementation plan to allow for a seamless transition to final design and construction in mid to late 2003. The Downtown East Valley Light Rail Project will be moving from the planning and environmental phase to final design in the next 18 month period. Other Rail and Facilities Projects: • Retrofit project to raise the 39 existing Guadalupe Corridor Light Rail station

platforms • Reconstruction of North Operating Division • Reconstruction and expansion of Cerone Operating Division, Overhaul and Repair

Facility and Distribution Center • Expansion of the Light Rail Vehicle Operations and Maintenance Facility • Master Plan Study for Chaboya Operating Division, Palo Alto, Gilroy and West Valley

College Transit Centers

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

Jack CollinsChief Construction

Officer

Rail & FacilitiesDesign &

ConstructionLes Miller

Deputy Director

Tasman East/Capitol Project

Design &Construction

ManagerArch Walters28 Positions

Administration2 Positions

Vasona ProjectDesign &

ConstructionManager

Mark Robinson18 Positions

Survey ManagerStan Heffner7 Positions

Positions:135 Full-Time

Capital ProjectsGroup Manager

Derek Carrier7 Positions

Facilities Design &Construction

ManagerKen Brencic48 Positions

Systems ManagerRamesh Dhingra

7 Positions

BART GroupManager Line

SegmentVacant

Haz MatEnvironmental

EngineerWes Toy

2 Positions

HighwayConstruction

Jeff FunkDeputy Director

3 Positions

Permits, USALocating

Business RelationsManager

Bill KindricksUtilities

CoordinationManager

John Beebe10 Positions

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

FY 2000-01 FY 2002-03

In thousands Actual Adopted Budget

Revised Budget Budget

Wages & Salaries 6,444$ 9,564$ 9,825$ 9,967$ 1.4%Benefits 2,187 3,622 3,719 3,837 3.2%Materials & Supplies 51 217 202 98 -51.5%Professional & Special Services 336 305 198 240 21.2%Other Services 1 9 4 6 50.0%Data Processing 12 - - - NAOffice Expense 36 74 69 59 -14.5%Employee Related Expense 87 114 88 82 -6.8%Leases & Rents 27 31 31 33 6.5%Miscellaneous 7 12 11 8 -27.3%Total Expense 9,188 13,948 14,147 14,330 1.3%Reimbursements (9,393) (11,065) (10,850) (11,898) 9.7%Net Total (205)$ 2,883$ 3,297$ 2,432$ -26.2%

Positions 106 137 145 135 -6.9%

CONSTRUCTION DIVISIONFY 2001-02 % of

Change from FY 02

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

Improvement Program (STP/CMAQ): STP funds are used to address problems caused by urban and suburban congestion by funding improvement projects across

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all transportation modes. CMAQ funds are to be used to implement the transportation provisions of the 1990 Federal Clean Air Act. The STP and CMAQ funding programs were wrapped into the Federal Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA) and continued when Congress enacted the Transportation Equity Act for the 21st Century (TEA-21) in mid-1997. Under both ISTEA and the current TEA-21 legislation, VTA determines the countywide priorities for these funds, subject to final approval of the Metropolitan Transportation Commission (MTC).

• Transportation Enhancement (TE): TEA-21 provides for a 10% set-aside of each

state’s STP allocation to be used for “Transportation Enhancement” (TE) above and beyond normal capital improvements that fit within the 12 categories described in the TEA-21 legislation. Within the MTC region, the responsibility for TE program development has been divided between MTC and the congestion management agencies (CMAs). MTC programs 50% of the available TE funding and the CMAs develop programs for the remaining 50% subject to MTC approval. VTA, acting in its capacity as the CMA for Santa Clara County, programs the local share.

• Regional Improvement Program (RIP): Senate Bill 45 (SB-45), which was signed into

law at the end of the 1997 legislative session, consolidated several state transportation funding programs and directed 75% of the funds from the State Highway Account (SHA) into the Regional Improvement Program (RIP). Each county receives a “County Share”. VTA determines the countywide priorities for these funds subject to final approval by MTC and the California Transportation Commission (CTC), via the State Transportation Improvement Program (STIP) process.

• Transportation Fund for Clean Air Program Manager Fund (TFCA 40%): In 1991,

state statute authorized the Bay Area Air Quality Management District (BAAQMD) to increase vehicle registration fees by up to $4.00 per vehicle to implement certain transportation control measures contained in the District’s adopted Clean Air Plan. Forty percent (40%) of these funds are distributed to each county based on a proportional share of paid vehicle registrations. These funds are allocated and administered by a program manager selected within each county. VTA’s Congestion Management Program is the program manager for the TFCA 40% Funds for Santa Clara County.

• Transportation Development Act Article 3: The California State Legislature enacted

the Transportation Development Act (TDA) in 1972. Article 3 of this act provides for the return of a portion of the sales tax receipts in each county to fund bicycle and pedestrian improvements. MTC administers the program Bay Area-wide, while VTA develops annual countywide program priorities.

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

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legislation also increased the responsibility of local agencies, such as VTA, to not only program transportation funds, but to also monitor project progress and potentially provide assistance to ensure timely completion. Because of the substantial fiscal impact on the countywide Capital Improvement Program due to delayed project construction, CMP staff is providing active oversight of the delivery of CIP projects. This oversight includes a significant level of direct involvement by program staff, utilizing consultant engineering assistance in several large, high profile state highway projects managed by Caltrans, including the Route 880/Dixon Landing Road interchange, the Route 237/880 interchange, and Route 87 near Norman Y. Mineta San Jose International Airport. This oversight also includes providing direct assistance to Member Agencies on transportation-related projects. CMP staff also provides to the Board of Directors and Advisory Committees the Programmed Projects Quarterly Monitoring Report, which tracks the progress of projects funded through programming actions by the Board of Directors. It also identifies projects at risk of losing funds due to delivery difficulties. Bicycle and Pedestrian Planning Program: The 20-year Countywide Bicycle Plan was adopted by the Board of Directors in October 2000. It includes three prioritized tiers of capital bicycle projects. The ten-year Bicycle Expenditure Program included in the Countywide Bicycle Plan is the funding mechanism for the Tier 1 projects. Over $31 million has been approved for the Bicycle Expenditure Program. This program administers and distributes funds to Member Agencies to implement and construct the projects. In 2001, the VTA Board of Directors requested that the VTA Advisory Committee structure be modified to focus more directly on pedestrian issues. In response, staff recommended that the existing Bicycle Advisory Committee be re-established as the Bicycle and Pedestrian Advisory Committee (BPAC), and that its duties be augmented to include attention to pedestrian-related issues. The Board also requested that staff develop a VTA Pedestrian Program that delineates the agency’s pedestrian-related activities. The Pedestrian Program is currently under development. Pavement Management Program: The 1996 Measure B Transportation Improvement Program (MBTIP) and other sources provide funds to local jurisdictions for street repair and other transportation projects. Administration and distribution of these funds is managed by the Pavement Management Program and is primarily based on a formula derived from the 1990 Proposition 111, which increased the tax on gasoline and subvened the receipts to local jurisdictions. Over the life of the 1996 Measure B, local jurisdictions will receive a combined total of approximately $90 million countywide. Additionally, $37 million in Federal funds previously secured for similar functions will also be administered and distributed through the Pavement Management Program. 2. TRANSIT PLANNING & DEVELOPMENT: Transit Planning & Programming is responsible for the planning and conceptual design of all major transit projects including new rapid transit corridors, federal, state and regional transit grants, and VTA’s transit oriented development (TOD) program. Current tasks include:

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

Revisions Environmental Analysis prepares all of VTA’s environmental documents including those required for 1996 MBTIP transit and highway projects. In addition, it coordinates VTA’s Development Review Program. Current tasks include: • Environmental Impact Statement/Environmental Impact Report (EIS/EIR) for Silicon

Valley Rapid Transit Corridor (BART) and Downtown to East Valley LRT • Environmental Documents for the 1996 MBTIP and highway projects developed for

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

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

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

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The eleven current Highway Program projects funded by the 1996 MBTIP are: • I-880 widening from 4 to 6 lanes from Montague Expressway to 101 and an auxiliary

lane on southbound I-880 from 101 to the North First Street exit ramp. • Route 85/87 direct connector ramps for southbound 85 to northbound 87 and

southbound 87 to northbound 85 movements. • Route 101 widening from a 4 lane to a 6 lane plus two HOV (carpool) lanes within the

existing median of the freeway between Bernal Road and Cochrane Avenue. • Routes 85/101 interchange in Mountain View. • Routes 237/880 interchange to Milpitas (Stage C) HOV lane direct connector ramps

from southbound 880 to westbound 237 and eastbound 237 to northbound 880; southbound 880 braided exit ramp to Tasman Drive and eastbound 237 braided ramp to southbound 880.

• Route 87 HOV lane from I-280 to Route 85. • Route 87 HOV lane from Julian Street to Route 280. • Routes 85/101 interchange in South San Jose. • Route 17 improvements from I-280 to Lark Avenue in the Town of Los Gatos. • Route 152 safety projects. • Route 85 noise mitigation. The other current Highway Program projects that are contained in VTP 2020 but are funded by sources other than the 1996 MBTIP are: • I-880/Coleman Avenue Interchange Improvement. • Route 152/156 Interchange Improvement. • I-680/880 Cross Connector Corridor Study. • Route 101 North Corridor Study. • Route 101 Central Corridor Study. • Route 237/101 Corridor Study. • Route 280/85 Corridor Study.

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

Michael P. EvanhoeChief Development Officer

Congestion ManagementProgram

Carolyn GonotDeputy Director

Administration1 Positions

Transit Planning &DevelopmentJim Lightbody

Deputy Director

Highway Development &Administration

John RistowDeputy Director

Planning & DevelopmentDepartment

James E. PiersonDirector

59 Positions

Marketing & CustomerService Department

Anne-Catherine VinickasDirector

73 Positions

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

FY 2000-01 FY 2002-03

In thousands Actual Adopted Budget

Revised Budget Budget

REVENUESFederal Operating Grants $ 452 $ 500 $ 952 $ 500 -47.5%State Operating Grants 171 224 224 411 83.5%Other Income 1,277 3,505 3,279 3,507 7.0%Total Revenues $ 1,900 $ 4,229 $ 4,455 $ 4,418 -0.8%

EXPENSESWages & Salaries 1,113$ 2,281$ 1,801$ 2,161$ 20.0%Benefits 437 774 450 843 87.3%Materials & Supplies 2 3 2 3 50.0%Professional & Special Services 917 687 509 442 -13.2%Other Services 256 1,516 972 2,378 144.7%Data Processing 65 36 76 77 1.3%Office Expense 13 21 20 22 10.0%Communications 1 12 6 13 116.7%Employee Related Expense 47 41 52 65 25.0%Leases & Rents 75 103 102 104 2.0%Miscellaneous 94 129 266 124 -53.4%Other - - - 15 NAReimbursements - (1,512) (910) (1,094) 20.2%Total Expense 3,020 4,091 3,346 5,153 54.0%

Surplus/(Deficit) to Reserves (1,120)$ 138$ 1,109$ (735)$ -166.3%

Beginning Reserves 1,330 210 210 1,319 528.1%Ending Reserves 210 348 1,319 584 -55.7%

Positions 20 28 26 27 3.8%

DEVELOPMENT AND CONGESTION MANAGEMENT DIVISIONCONGESTION MANAGEMENT PROGRAM AND HIGHWAY DEVELOPMENT &

ADMINISTRATIONFY 2001-02 % of

Change from FY 02

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• Initiation of five highway corridor studies: U.S. 101 – Great America Parkway to Old Oakland Road; U.S. 101 – I-280/I-680 to Capital/Yerba Buena; SR 85/I-280 Area Improvements; SR 237 – I-880 to SR 85; and a joint study with the San Mateo Congestion Management Agency (CMA) to study the U.S. 101 corridor from Redwood City to Mountain View and the western approaches to the Dumbarton Bridge.

• Development of the Intelligent Transportation Systems (ITS) Plan and its expenditure plan.

• Development of the Pedestrian Program to define VTA’s pedestrian-related activities.

This includes development of the Pedestrian Technical Guidelines. • Review and enhancement of VTA’s current Development Review process.

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

Member Agency Total

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

Santa Clara Valley Transportation AuthorityCongestion Management Program

Recommended FY 2002-03 Member Assessments

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

FY 2000-01 FY 2002-03

In thousands Actual Adopted Budget

Revised Budget Budget

Wages & Salaries 5,026$ 7,192$ 7,294$ 6,688$ -8.3%Benefits 2,153 3,148 3,159 3,039 -3.8%Materials & Supplies 16 29 29 30 3.4%Professional & Special Services 824 1,710 1,643 933 -43.2%Other Services 1,800 1,782 1,757 1,743 -0.8%Utilities 1 - - 1 NAData Processing 12 8 8 9 12.5%Office Expense 85 91 88 82 -6.8%Employee Related Expense 71 102 222 145 -34.7%Leases & Rents 132 91 91 94 3.3%Miscellaneous 127 373 349 74 -78.8%Contribution to Other Agencies 140 156 156 162 3.8%Total Expense 10,387 14,682 14,796 13,000 -12.1%Reimbursements (1,859) (2,505) (2,251) (2,605) 15.7%Net Total 8,528$ 12,177$ 12,545$ 10,395$ -17.1%

Positions 117 131 134 107 -20.1%

DEVELOPMENT AND CONGESTION MANAGEMENT DIVISION

FY 2001-02 % of Change

from FY 02

PLANNING & DEVELOPMENT AND MARKETING & CUSTOMER SERVICE

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

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

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

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

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Jerry RosenquistController

Scott BuhrerChief Financial Officer

Business Analysis &Debt Administration

Kimberly KoenigManager

4 Positions

Administration2 Positions

Positions:135 Full-Time

Contracts & MaterialsManagement

Tom SmithManager

58 Positions

Budget & AnalysisVictor Chan

Manager6 Positions

Investment ServicesManny Bagnas

Manager3 Positions

Internal AuditGrace Salandanan

Manager6 Positions

DisbursementsAli HuddaManager

27 Positions

Financial ServicesLinda Willis

Manager15 Positions

Revenue ServicesDavid Sausjord,

Manager12 Positions

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

FY 2000-01 FY 2002-03

In thousands Actual Adopted Budget

Revised Budget Budget

Wages & Salaries 6,731$ 7,962$ 7,820$ 8,789$ 12.4%Benefits 2,623 3,043 2,927 3,425 17.0%Materials & Supplies (941) 39 14 14 0.0%Professional & Special Services 798 2,668 1,851 1,341 -27.6%Other Services 488 533 688 304 -55.8%Data Processing 47 25 7 5 -28.6%Office Expense 176 168 126 158 25.4%Communications 4 4 4 4 0.0%Employee Related Expense 91 192 179 143 -20.1%Leases & Rents 31 48 38 45 18.4%Miscellaneous 356 341 356 640 79.8%Other Expense - 27 26 11 -57.7%Total Expense 10,404 15,050 14,036 14,879 6.0%Reimbursements - (1,381) (21) (1,511) 7095.2%Net Total 10,404$ 13,669$ 14,015$ 13,368$ -4.6%

Positions 121 139 150 135 -10.0%

FISCAL RESOURCES DIVISIONFY 2001-02 % of

Change from FY 02

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

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OTHER RESPONSIBILITIES VTA groups all the expenses that are beyond the control of an individual division, difficult to be allocated meaningfully to any division or unrelated to actual operations into a non-departmental division. The rationale is that since the divisions have no control over these expenses, they should not be held responsible or accountable for them. The typical expenses are general liability adjustments, and prior year adjustments.

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

FY 2000-01 FY 2002-03

In thousands Actual Adopted Budget

Revised Budget Budget

Wages & Salaries (540)$ (2,996)$ -$ -$ NABenefits 2,494 74 74 74 0.0%Professional & Special Services (24) - - - NATires 8 - - - NAInsurance (3,300) (2,000) (2,000) (1,000) -50.0%Miscellaneous (80) - - - NAOther Expense 93 - - - NATotal Expense (1,349) (4,922) (1,926) (926) NAReimbursements 2,752 3,606 3,179 3,750 NANet Total 1,403$ (1,316)$ 1,253$ 2,824$ NA

NON-DEPARTMENTALFY 2001-02 % of

Change from FY 02

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CAPITAL BUDGET The current financial situation has had a major impact on VTA capital spending. Over the past year, the Capital Improvement Program Oversight Committee (CIPOC), which is composed of senior management and supporting staff from the Operations, Construction, Development/Congestion Management and Fiscal Resources divisions, has conducted a thorough review of the entire capital program. This process examined every capital project as to their criticality to our operations, strategic plan, and goals. Consequently, 158 projects were closed, cancelled or scaled back. The following is a list of these projects by category.

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

VTA Non-VTA Total VTA Non-VTA Total ADA 2 1,512$ 880$ 2,392$ (1,300)$ (48)$ (1,348)$ Bus Facility Expansion 3 32,993 12,780 45,773 (16,484) - (16,484) Caltrain Capital Contribution 1 5,734 - 5,734 (1) - (1) Info Systems 20 34,880 - 34,880 (3,864) - (3,864) Non-Revenue Vehicles & Facilities 4 2,512 - 2,512 (361) - (361) Operating Equipment 36 10,621 9,750 20,371 (4,689) (2,858) (7,547) Operating Facilities 32 19,883 222 20,105 (5,644) - (5,644) Other 21 23,532 783 24,315 (19,591) (8) (19,599) Passenger Facilities 20 12,753 4,844 17,597 (6,737) (128) (6,865) Rail Expansion 4 1,427 625 2,052 (255) (625) (880) Revenue Vehicles & Equipment 6 14,710 20,010 34,720 (11,386) (9,800) (21,186) Studies & Planning 9 1,380 - 1,380 (367) - (367) Total 158 161,937$ 49,894$ 211,831$ (70,679)$ (13,467)$ (84,146)$

No. of Projects

Original Budget Total CIPOC Savings

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New Augmented Total New Augmented TotalFY 2002-2003 4,669$ 2,848$ 7,517$ 12 2 14FY 2001-2002 Revised 63,318 116,785 180,103 49 14 63Increase/(Decrease) (58,649)$ (113,937)$ (172,586)$ (37) (12) (49)

% Increase/(Decrease) -93% -98% -96% -76% -86% -78%

Summary of Changes in New Capital

YearIn $000's In Number

Estimated ProjectedApproved Recommended Recommended Total Total Net

Project Projects & Project Reimburse- VTA ProjectProgram Group Budgets Modifications Budgets ments Costs

New ProjectsNon-Revenue Vehicles -$ 1,083$ 1,083$ -$ 1,083$ Operating Equipment - 1,111 1,111 - 1,111 Operating Facilities - 2,374 2,374 2,374 Other - 100 100 - 100 Total New Projects -$ 4,668$ 4,668$ -$ 4,668$

Augmented ProjectsPassenger Facilities 1,060$ 537$ 1,597$ (1,211)$ 386$ Rail Facility expansion 7,430 2,311 9,741 (9,741) - Total Augmented 8,490$ 2,848$ 11,338$ (10,952)$ 386$

Carryover ProjectsADA Paratransit 4,630$ -$ 4,630$ (2,927)$ 1,703$ Bus Facility Expansion 81,994 - 81,994 (29,422) 52,572 Info Sys., Comm & Tech 30,701 - 30,701 (12,202) 18,499 Non-Revenue Vehicles 4,012 - 4,012 (209) 3,803 Operating Equipment 5,177 - 5,177 (2,000) 3,177 Operating Facilities 9,060 - 9,060 - 9,060 Passenger Facilities 56,634 - 56,634 (8,785) 47,849 Rail Facility Expansion 416,038 - 416,038 (378,198) 37,840 Revenue Vehicles & Equipment 324,667 - 324,667 (285,455) 39,212 Other 3,501 - 3,501 - 3,501 Total Carryover 936,414$ -$ 936,414$ (719,198)$ 217,216$

Total Capital Projects 944,904$ 7,516$ 952,420$ (730,150)$ 222,270$

CAPITAL PROJECT PROGRAMMING(EXCLUDING 1996 MEASURE B TRANSPORTATION IMPROVEMENT PROGRAM)

SANTA CLARA VALLEY TRANSPORTATION AUTHORITYCAPITAL BUDGET - FY 2002-03

(In $000's)

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NEW CAPITAL PROJECTS

Non-Revenue Vehicles (NRV) NRV procurement is a planned, on-going activity. There are 30 vehicles scheduled for replacement due to their age or mileage. In addition, four support vehicles are being requested to address unmet needs. These additional vehicles are one Passenger Facilities Maintenance Truck, two specialty maintenance vehicles for Light Rail Way, Power and Signal, and one Tilt Trailer. Vehicles used in support of the Capital Program will result in project reimbursement for their usage. Vehicle assignment at VTA utilizes a cascade approach with older, used vehicles assigned to adverse operating conditions such as construction site inspection. (More information is provided in Appendix G.) Project Budget: $1,083,300 Grant Funding: $0 Local Funds required: $1,083,300

Operating Equipment River Oaks HVAC Scheduled Unit Replacement The River Oaks facility needs to replace seven air conditioning package units. These units are original equipment that have been in place for over 20 years and are no longer cost-effective to repair, as the average life cycle of these units is 10 to 15 years. This request would replace three of these units in FY 2002-03. The remaining four units will be recommended for replacement as part of the FY 2003-04 Capital Budget. Project Budget: $246,000 Grant Funding: $0 Local Funds required: $246,000 Light Rail T-Signal Retrofit This project will retrofit light rail T-Signals with the new Manual of Uniform Traffic Control Devices (MUTCD) Standard T-Signal indications for the Guadalupe, Tasman West & Tasman East (Zanker-I880) Light Rail Corridors. The MUTCD is a nationally recognized standard and is being implemented as part of the Tasman East (I880-Hostetter), Vasona, and Capitol Light Rail Corridors. This project will create a signal standard for the entire system. The project is being budgeted in two phases, with design being included for FY 2002-03, while construction will be requested in FY 2003-04. The total estimated cost for the project is $1,900,000. Project Budget: $250,000 Grant Funding: $0 Local Funds required: $250,000 Facilities and Equipment Emergency Repair Allowance This ongoing account allows VTA to expedite unplanned repairs that may be required at facilities or to equipment that is essential to normal or safe operations. These funds are

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administered by the Deputy Director of Operations for Maintenance, and are not used for regular anticipated maintenance activities. Project Budget: $300,000 Grant Funding: $0 Local Funds required: $300,000 Maintenance Equipment Replacement Program This capital item allows for the scheduled replacement of equipment that has reached the end of its useful life. It allows VTA to proactively keep its equipment in a state of good repair, while reducing repair expenses and downtime. Equipment scheduled for replacement includes six forklifts, one tow tractor, four air compressors, one mill, and one rebuilt brake lathe. Project Budget: $315,000 Grant Funding: $0 Local Funds required: $315,000

Operating Facilities Chaboya Maintenance Bay Pit Modifications There are seven maintenance bay pits at the Chaboya Division that are not deep enough to accommodate mechanics working underneath the new VTA standard low-floor buses. This project will replace all existing pits with above ground lifting systems. The work includes: Demolishing and filling in pits to match the existing flat shop floor surface; Installing overhead electrical wiring system to accommodate new lift systems; and, Purchasing seven new lift systems that accommodate articulated buses. Project Budget: $551,000 Grant Funding: $0 Local Funds required: $551,000 Chaboya Restrooms Rehabilitation Chaboya Division has a total of ten restroom facilities that have not been rehabilitated since 1981. While the Chaboya Expansion Project is currently on hold, the sinks, faucets, countertops and floors are in poor condition and need to be replaced. This project includes demolition of the existing facilities, the installation of new fixtures, wainscoting, water closets, sinks, showers, and floor coatings. With these improvements, the useful life of each restroom should be increased approximately 20 years. Project Budget: $448,000 Grant Funding: $0 Local Funds required: $448,000

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

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for unscheduled painting and touch-ups. Repainting of eight Guadalupe Corridor Stations will be conducted as part of the Guadalupe Corridor Station Platform Retrofit Project. Project Budget: $350,000 Grant Funding: $0 Local Funds required: $350,000

Other Office Furniture Existing workstations must be reconfigured to accommodate changing work assignments. This budget will reimburse VTA labor involved in these activities. Project Budget: $100,000 Grant Funding: $0 Local Funds required: $100,000

AUGMENTED CAPITAL PROJECTS

Passenger Facilities Palo Alto Depot Station Renovation This project will restore and rehabilitate the Downtown Palo Alto Train Depot. On the California Historic Register of Structures, the project will extend the useful life of the building and allow the continued use of the building as a CalTrain ticket sales area, VTA operator restroom facility, and potentially may be used for passenger amenities such as food and beverage sales. This augmentation is required because the extent of the restoration is greater than anticipated. Seismic upgrades will be required for safety and to comply with the California State Historical Building Code. Additional federal funds in the amount of $429,684 have been made available to help fund additional required work. Existing Budget: $1,060,340 Augmentation: $537,335 Total Grant Funding: $1,211,118 Total Local Funds required: $386,557

Rail Facility Expansion Downtown/East Valley Conceptual Design Conceptual Engineering (CE) and an EIR/EIS are currently underway for the Downtown East Valley projects, which include two LRT extensions and one BRT project. It had been anticipated that CE would be completed in the early part of FY 2002-03. However, the resolution of key issues that have emerged during CE, as well as the potential delay of funding for Preliminary and Final Design, warrant the continuation of CE through FY 2002-03. The proposed budget augmentation will fund consultant services, staff and other costs to address multiple issues. The major issues are continuing:

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• Public outreach to secure community support for key project issues such as the downtown alignment and grade separations on Capitol Expressway;

• CE activities for continued coordination with the Silicon Valley Rapid Transit Corridor;

• Activities to secure agreements with local agencies on key project elements such as traffic provisions, utility relocations and urban design;

• Coordination of the Monterey BRT project with the activities for the Line 22 BRT project; and

• Additional design for the Eastridge Transit Center (potential early project phase.) Existing Budget: $7,430,000 Augmentation: $2,311,000 Total External Funding: $5,741,000 2000 Measure A Funding: $4,000,000 Total Local Funds required: $0

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1996 MEASURE B TRANSPORTATION IMPROVEMENT PROGRAM The voters of Santa Clara County approved Measures A and B on November 6, 1996. The advisory Measure A delineated a list of priority transportation projects to be undertaken should funding become available. The validity of 1996 Measure B, which called for a nine-year half-cent general sales tax, was challenged in the courts. The California State Supreme Court refused to hear an appeal, upholding 1996 Measure B and allowing the sales tax to stand. In February 2000, the VTA Board of Directors approved the execution of the Master Agreement with Santa Clara County Board of Supervisors. The agreement identifies the roles, responsibilities and obligations of County and VTA in the implementation of the 1996 Measure B Transportation Improvement Program (MBTIP). In the agreement, the County Board of Supervisors has committed actual 1996 Measure B sales tax receipts for use in the completion of the 1996 Measure A Projects. The Base Case Implementation Plan, approved by the County Board of Supervisors in June 1999, and updated every June thereafter, identifies the 1996 Measure B Projects along with preliminary budget estimates. Budget estimates found in this document for 1996 Measure B Projects reflects those recommended for adoption at the June 7, 2002 Joint VTA and County Board Of Supervisors workshop. The ultimate project scopes and estimated costs for completion will be revised based on Baseline Scope, Schedule & Costs submitted to both VTA and County Boards at the completion of preliminary design or project study reports. The 1996 MBTIP projects are grouped into seven programs: Transit Program, Highway Program, Bicycle Program, Pavement Management Program, Fund Transfer Projects, Expressway Signal Synchronization Program, and Level of Service Intersection Improvement Program. VTA is not involved in the administration of the last two programs. The following is a description of the Transit, Highway, Bicycle, Pavement Management Programs, and Fund transfer Projects.

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

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

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

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

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

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

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

Old Middlefield Way; • Constructing additional lanes; and • Constructing high occupancy vehicle (HOV) direct-connector ramps between

northbound Route 85 to northbound Route 101 and southbound Route 101 to southbound Route 85.

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

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Completion Date: Spring 2004 Route 87 HOV Lanes (Between Branham Lane and I-280) This project will construct a high-occupancy vehicle (HOV) lane in each direction in the existing median between Branham Lane and I-280, a distance of approximately 4.5 miles. In addition, the project will include installation of ramp meters, HOV on-ramp bypasses and retaining walls. A separate project may include the repair of pavement, median barrier, sound wall, and drainage systems damaged by settlement in this segment of the freeway. Project Budget: $75,215,131 Funding: $32,215,131 in 1996 MBTIP funds and $43,000,000 in STIP and SHOPP funds Completion Date: 2004 Route 87 HOV Lanes (Between I-280 and Julian Street) This project widens Route 87, from I-280 to 0.2 miles north of Julian Street, from a four to a six-lane freeway. The project includes adding a high occupancy (HOV) lane in each direction and installing ramp meters at the entrance ramps. Project Budget: $46,603,752 Funding: $27,103,752 in 1996 MBTIP funds and $19,500,000 in STIP funds Completion Date: 2004 Route 85/101 (S) Interchange – South San Jose This project will construct high-occupancy vehicle (HOV) direct connectors from northbound Route 101 to northbound Route 85 and southbound Route 85 to southbound Route 101. The southbound Route 101 to northbound Route 85 branch connector will also be constructed. In addition, the project will include the widening of Route 101 to eight lanes between Bernal Road and Metcalf Road. Project Budget: $62,145,925 Funding: $37,145,925 in 1996 MBTIP funds and $25,000,000 in State funds (TCRP) Completion Date: Summer 2004 Route 17 Improvements The scope of this project includes the following recommended projects: • Modify San Tomas Expressway between Winchester Boulevard and White Oaks

Road; • Add an auxiliary lane on northbound 17 between Route 85 and Camden Avenue; • Add an auxiliary lane on northbound 17 between Camden Avenue and Hamilton

Avenue; • Improve the merge of I-280 with southbound Route 17; • Improve the Hamilton Avenue off-ramp with added paving and overhead sign; and

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

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2000 MEASURE A TRANSIT IMPROVEMENT PROGRAM In accordance with the 2000 Measure A ballot language, 100% of the sales tax funds generated by the measure are dedicated to transit. This section describes some key capital projects for which 2000 Measure A funding is committed, including those that will require additional funding from other sources and, in some cases for which full project funding is not yet identified. • Zero-Emission Vehicles and Facilities – VTA is committed to reducing particulate

emissions from the bus fleet. On December 14, 2000, the VTA Board of Directors adopted a Zero-Emission Bus (ZEB) Plan, which involves the gradual conversion to a full fleet of fuel cell powered buses, selecting the low-emission diesel fuel path over the alternative fuel path (compressed natural gas). The ZEB plan includes the near-term acquisition of low-emission diesel buses, as well as retrofitting existing diesel bus engines with devices to reduce emissions. VTA will also implement the Zero-Emission Bus Demonstration project.

• Downtown East Valley Transit Improvement Plan – In August 2000, VTA Board of Directors approved a Preferred Investment Strategy for the Downtown East Valley area of San Jose. It includes the following projects:

o Light rail along Santa Clara Street and Alum Rock Avenue from the Capitol LRT line to Downtown San Jose;

o Light rail along the Capitol Expressway from the Alum Rock Station on the Capitol LRT line to the Eastridge Mall area; and

o Light rail along the Capitol Expressway from the Eastridge Mall area to the Guadalupe LRT line; and

o Bus Rapid Transit Improvements on Monterey Highway from Downtown San Jose to the Santa Teresa Station on the Guadalupe LRT line.

• Low-floor Light Rail Vehicles – VTA has committed to improving accessibility by converting the Light Rail Vehicle (LRV) fleet to low-floor vehicles, with the VTA Board having approved a contract for acquiring 100 low-floor LRVs.

• Silicon Valley Rapid Transit Corridor Project – VTA is conducting a Major Investment Study (MIS) for the Silicon Valley Rapid Transit Corridor. The project area stretches over 20 miles form Union City in Alameda County to the cities of Milpitas, San Jose, and Santa Clara in Santa Clara County. It contains three existing rail lines that are owned by the Union Pacific Railroad (UPRR). The MIS compares alternative modes including rapid rail (such as BART), light rail, express bus, and commuter rail. Following completion of the MIS, an EIS/EIR will be prepared for the Preferred Investment Strategy.

• Bus Rapid Transit Corridors – VTA has embraced the concept of Bus Rapid Transit (BRT) and identified three BRT corridors in VTP 2020. VTA currently has two BRT corridors under active development – the Line 22 BRT corridor and the Monterey Highway BRT Corridor. VTP 2020 also identifies the Stevens Creek Boulevard as a potential BRT corridor; however, no study of the corridor has been undertaken to date.

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• Caltrain Service Improvements – VTA, in cooperation with the Peninsula Corridor Joint Powers Board (PCJPB), is directly improving or financially supporting many aspects of the Caltrain service. Key elements include system rehabilitation, upgraded station facilities, new express service, expanded service to Gilroy and electrification.

• Additional 2000 Measure A Projects: o New Light Rail Corridors – At least two future light rail corridors have been

identified for Major Investment Studies and seven potential candidate corridors are listed.

o Transit Access for San Jose International Airport – VTA has participated with Airport Department staff in an ongoing effort to develop a transit plan in conjunction with the Airport expansion project. This project would provide a link from San Jose International Airport to VTA’s Guadalupe Light Rail Transit Line on North First Street in San Jose, and to Caltrain and, potentially, future BART in Santa Clara.

o Altamont Commuter Express (ACE) Rail Service Upgrade – There are two phases of service frequency improvements to ACE service. They are: § An initial increase to six trains per day, which was implemented in mid-

2001; and § An additional expansion to twelve trains.

There are also track and station improvements o Dumbarton Rail Corridor – The project provides VTA’s share of matching

funds for a partnership with Alameda and San Mateo counties for the rebuilding of the Dumbarton Rail Corridor. The service would run over the Dumbarton Rail Bridge between the Union City BART station in Alameda County and Caltrain in San Mateo and Santa Clara counties.

o Highway 17 Bus Service Improvements – funding for additional buses and service upgrades for the Highway 17 Express Bus service.

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FUND TRANSFER PROGRAM In order to maximize funding opportunities and operational efficiencies, VTA has agreed to secure Federal or State grant funds and sales tax revenue bond proceeds for certain 1996 MBTIP projects and to release 1996 MBTIP funds to fund other projects. Currently, fund transfers have been performed on the Tasman East, Capitol, and Vasona Light Rail Projects. Tasman East Light Rail Project Transfer $72.8 million of Federal and State grants funds and $100.0 million of bond proceeds were transferred into this project. A net of $167.9 million was transferred out for other projects or purposes. Vasona Light Rail Project Transfer $51.6 million of Federal and State grants funds and $56.4 million of bond proceeds were transferred into this project. The same amount was transferred out for other projects or purposes. Capitol Light Rail Project Transfer $41.9 million of bond proceeds were transferred into this project. The same amount of Measure B funds were transferred out for other projects or purposes.

BICYCLE PROGRAM The 1996 MBTIP has allocated $12.0 million towards the Bicycle Program, a series of bicycle projects that were developed as part of the Countywide Bicycle Plan. VTA’s Board of Directors adopted the Bicycle Plan in October 2000 after approval of a ten-year expenditure plan by VTA and the County Board of Supervisors.

PAVEMENT MANAGEMENT PROGRAM This program administers and distributes 1996 MBTIP funds, along with other sources, to local jurisdictions for street repair and other transportation projects. VTA is responsible for the administration and distribution of program funds. The total MBTIP allocation to this the program is projected at $90.0 million.

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

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Avenue intersection, the City has requested that VTA combine the two projects into a single construction contract. Project Budget: $1,113,676 Funding: $1,113,676 from the City of Milpitas Completion Date: 2002 I-880/Coleman Avenue Interchange Reconstruct the Coleman Avenue Interchange at I-880 in San Jose to improve access to the Mineta San Jose International Airport. This project is sponsored by the City of San Jose. Project Budget: $65,500,000 Funding: $5,000,000 in City of San Jose funds, $5,000,000 in State (TCRP) funds and $55,500,000 in State Transportation Improvement program (STIP) funds. Completion Date: 2005 I-680/I-880 Cross Connector Study Prepare a Conceptual Alternative Analysis for a freeway connector from I-680 to I-880 including preliminary engineering and initial environmental evaluation. Project Budget: $3,000,000 Funding: $1,000,000 in VTA Gateway Studies funds, $1,000,000 in State (TCRP) funds and $1,000,000 in Alameda County Transportation Improvement Authority funds. Completion Date: 2004 South County Gateway Study Study multi-modal transportation improvements at the southern gateway to Santa Clara County to identify cost-effective transportation projects. Based on preliminary findings in VTP 2020, the following corridors are considered for study: Route 25 from the San Benito County Line to Gilroy; Highway 101 from Gilroy to the San Benito County Line; Highway 156 from Route 152 to the San Benito County Line; and Highway 152 from Gilroy to the junction with 156. Project Budget: $750,000 Funding: $750,000 in VTA Gateway Studies funds. Completion Date: 2003 Peninsula Gateway Corridor Study Study multi-modal transportation improvements in the US 101 and Dumbarton Bridge approaches as a gateway into Santa Clara and San Mateo Counties. Project Budget: $500,000 Funding: $250,000 in VTA Gateway Studies funds, $250,000 from San Mateo CCAG

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

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APPENDIX A

Santa Clara Valley Transportation Authority Employee Positions by Division and Pay Ranges

Projected as of 7/1/2002

MinMid/Top

Step MaxOffice of the General ManagerGeneral Manager 1 - - 207,640Chief of Staff to the GM 1 115,490 133,969 152,447Government Affairs Manager 1 95,020 110,223 125,426Board Secretary 1 99,776 115,729 131,691Document Management Supervisor 1 70,905 82,250 93,595Transportation Policy & Program Manager 1 70,905 82,250 93,595Executive Secretary to the GM 1 50,412 58,478 66,544Executive Secretary 1 45,733 53,050 60,367Engineering Technician II/I 2 46,782 56,623 -Board Assistant 8 44,719 54,060 -Reproduction Services Specialist II/I 6 35,439 42,787 -Document Control Clerk II/I 9 34,777 41,993 -Office Specialist II 3 34,777 41,993 -Total 36

Office of the General CounselGeneral Counsel 1 - - 159,539Assistant General Counsel 2 121,249 140,649 160,049Senior Assistant Counsel 4 95,020 110,223 125,426Legal Secretary 1 48,005 55,686 63,366Administrative Services Assistant 1 37,612 43,630 49,648Total 9

Base Annual Rate

Job Descriptions

Number of

Positions

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MinMid/Top

Step MaxOperations-AdministrationChief Operating Officer 1 133,689 155,079 176,470Deputy Dir., Service & Operation Planning 1 99,766 115,729 131,691DD, Transportation Tech Trng.& Rail Actv. 1 99,766 115,729 131,691Chief of Security 1 95,020 110,223 125,426Operations Program Manager 1 82,063 95,193 108,323Service Planning Manager 1 74,437 86,347 98,256Policy & Administrative Mgr. - Operations 1 70,905 82,250 93,595Accessible Services Program Manager 1 67,531 78,336 89,140Light Rail Signal Supervisor 2 67,531 78,336 89,140Senior Management Analyst 3 67,531 78,336 89,140Technical Training Supervisor 1 67,284 81,741 -Light Rail Technical Training Supervisor 1 67,284 81,741 -Service Planning Supervisor 1 61,254 71,055 80,856Technical Trainer 6 61,003 74,159 -Light Rail Technical Trainer 5 61,003 74,159 -Transportation Supervisor 2 61,003 74,159 -Management Analyst 9 58,353 67,689 77,025Engineering Technician III/II/I 1 55,088 66,668 -Transit Svc. Development Spec. III/II/I/Aide 1 53,786 65,069 -Tranist Svc. Development Spec. II/I/Aide 6 48,898 59,176 -Engineering Technician II/I 1 48,419 58,605 -Administrative Support Officer 2 48,005 55,686 63,366Executive Secretary 1 45,733 53,050 60,367Accessible Services Representative 1 41,841 50,543 -Secretary 1 39,352 47,551 -Adminstrative Services Assistant 1 37,612 43,630 49,648Office Specialist II 8 35,994 43,463 -Fare Inspector 9 35,235 50,378 -Traffic Checker 1 33,368 40,288 -Traffic Checker (U) 9 33,368 40,288 -Operator Trainee 3 31,949 - -Total 83

Job Descriptions

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Step MaxOperations - TransportationDeputy Director, Transit Operations 1 109,979 127,576 145,172Transportation Superintendent 5 78,171 90,678 103,185Asst. Superintendent- Field Operations 2 67,531 78,336 89,140Asst. Superintendent-Transit Comm. 4 67,531 78,336 89,140Transportation Supervisor 42 61,003 74,159 -Transit Division Supervisor 11 61,003 74,159 -Dispatcher Supervisor 2 61,003 74,159 -Bid Dispatch Timekeeping System Spec. 1 59,747 72,308 -Management Analyst 2 58,353 61,689 77,025Office Support Supervisor 4 48,005 55,686 63,366Administrative Support Officer 1 48,005 55,686 63,366Executive Secretary 1 45,733 53,050 60,367Dispatcher - Bus 24 39,083 55,869 -Dispatcher - LR 5 39,083 55,869 -Account Clerk II/I 6 35,994 43,463 -Office Specialist II 9 35,994 43,463 -Transit Radio Dispatcher 18 35,672 50,981 -Light Rail Operator 94 34,403 49,171 -Bus Operator 955 34,403 49,171 -Operator - LT Leave (partially funded) 70 - - -Total 1,257

Job Descriptions

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Positions

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Step MaxOperations - MaintenanceDeputy Director, Transit Maintenance 1 109,979 127,576 145,172General Superintendent - Maintenance 2 95,020 110,223 125,426Facilities Maintenance Manager 1 95,020 110,223 125,426Maintenance Support Services Manager 1 95,020 110,223 125,426Maintenance Engineering Manager 1 90,476 104,952 119,428Rail Vehicle Projects Manager 1 82,063 95,193 108,323Communications Systems Manager 1 78,171 90,678 103,185Maintenance Superintendent 4 78,171 90,678 103,185Materials Manager 1 78,171 90,678 103,185Rail Integration Projects Manager 1 78,171 90,678 103,185Light Rail Equipment Superintendent 1 78,171 90,678 103,185LR Way, Power & Signal Superintendent 1 78,171 90,678 103,185Sr. Mechanical Engineer - Auto Systems 1 74,476 90,517 -Sr. Systems Engineer 1 74,476 90,517 -Quality Assurance & Warranty Manager 1 74,437 86,347 98,256Light Rail Power Supervisor 1 70,618 85,852 -Communications Systems Analyst 3 69,591 84,322 -Light Rail Signal Supervisor 1 67,531 78,336 89,140Sr. Management Analyst 2 67,531 78,336 89,140Supervising Maintenance Instructor 1 67,284 81,741 -LR Vehicle Maintenance Supervisor 5 67,284 81,741 -Transit Maintenance Supervisor 19 67,284 81,741 -Facilities Maintenance Coordinator 1 67,284 81,741 -Warranty Coordinator 2 67,284 81,741 -Overhead Line Worker 9 64,750 73,590 -Substation Maintainer 8 64,750 73,590 -Assoc. Mechanical Eng. - Auto Systems 2 63,679 77,375 -Associate Systems Engineer 1 63,679 77,375 -Vehicle Parts Supervisor 5 62,236 75,620 -Nonrevenue Vehicle Coordinator 1 61,254 71,055 -Maintenance Instructor - Bus 6 61,003 74,159 -Maintenance Instructor - LR 3 61,003 74,159 -LR Track Maintenance Supervisor 1 61,003 74,159 -Foreperson - LRT 6 60,050 68,245 -Overhaul & Repair Foreperson 3 60,050 68,245 -Paint & Body Foreperson 1 60,050 68,245 -Paint & Body Foreperson - LRT 1 60,050 68,245 -Transit Foreperson 13 60,050 68,245 -Upholstery Foreperson 1 60,050 68,245 -LR Station & Wayside Maintenance Supv. 1 58,353 67,689 77,025Management Analyst 3 58,353 67,689 77,025

Job Descriptions

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Positions

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Step MaxOperations - Maintenance (Cont'd)Passenger Facilities Maintenance Supv. 1 58,353 67,689 77,025Quality Assurance & Warranty Specialist 3 58,057 70,230 -LR Signal Maintainer 14 55,613 67,284 -Engineering Technician III/II/I 1 55,088 66,667 -Electronic Technician - LRT 4 55,058 62,566 -Electronic Technician - Systems 2 55,058 62,566 -Electro - Mechanic 50 55,058 62,566 -Overhaul & Repair Mechanic 35 55,058 62,566 -Paint & Body Worker 15 55,058 62,566 -Paint & Body Worker - LR 11 55,058 62,566 -Transit Mechanic 130 55,058 62,566 -Upholsterer 9 55,058 62,566 -Sr. Track Worker 7 55,058 62,566 -Parts Foreperson 1 53,498 60,819 -Facilities Maintenance Representative 5 48,419 58,605 -Office Support Supervisor 8 48,005 55,686 63,366Administrative Support Officer 1 48,005 55,686 63,366Janitor Supervisor 1 48,005 55,686 63,366Track Worker 7 47,528 53,726 -Transit Mechanic - G 9 47,258 53,726 -Executive Secretary 1 45,733 53,050 60,367Maintenance Scheduler 5 44,641 53,997 -Management Secretary 3 41,481 48,118 54,755Materials Resource Scheduler 5 40,471 48,898 -General Maintenance Mechanic 1 39,534 47,779 -Secretary 2 39,352 47,551 -Sr. Utility Worker 1 37,730 45,564 -Support Mechanic 5 36,150 51,688 -Account Clerk II 6 35,994 43,463 -Office Specialist II 14 35,994 43,463 -Facilities Maintenance Assistant 1 35,333 42,663 -Bus Stop Maintenance Worker 17 35,149 42,435 -Service Mechanic 22 34,819 49,795 -Mechanic Trainee 7 34,819 49,795 -Utility Worker 3 34,350 41,453 -Parts Clerk - Bus 25 34,278 49,005 -Parts Clerk - LR 2 34,278 49,005 -Parts Clerk - System 10 34,278 49,005 -Service Worker - Bus 6 33,530 47,944 -Service Worker - System 3 33,530 47,944 -Service Worker - Bus & System 84 33,530 47,944 -Service Worker - LR 13 33,530 47,944 -Automotive Attendant 1 32,614 39,352 -

Job Descriptions

Number of

Positions

Base Annual Rate

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Step MaxOperations - Maintenance (Cont'd)Janitor 10 31,290 37,730 -Transit Facilities Worker - Bus 16 29,744 42,515 -Transit Facilities Worker - LRT 2 29,744 42,515 -Transit Facilities Worker - System 17 29,744 42,515 -Lead Maintenance Worker - LRT 7 29,723 42,474 -Maintenance Worker - LRT 19 28,288 40,456 -Total 741

Job Descriptions

Number of

Positions

Base Annual Rate

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MinMid/Top

Step MaxAdministrative ServicesChief Administrative Officer 1 133,689 155,079 176,470Chief Information Officer 1 109,979 127,576 145,172Human Resources Manager 3 95,020 110,223 125,426Information Systems Manager 3 95,020 110,223 125,426Risk Manager 1 95,020 110,223 125,426Information Systems Supervisor 5 78,171 90,678 103,185Senior Management Analyst 1 67,531 78,336 89,140Senior Human Resources Analyst 8 67,531 78,336 89,140Claims Supervisor 1 67,531 78,336 89,140Rail Safety Supervisor 1 67,531 78,336 89,140Environmental Health & Safety Supervisor 1 67,531 78,336 89,140Senior Information Systems Analyst 11 69,591 84,322 -Senior Programmer Analyst 9 69,591 84,322 -Database Administrator 4 69,591 84,322 -Unix Adminstrator 1 69,591 84,322 -Environmental Health & Safety Specialist 2 63,264 76,579 -Organizational Dvlpmt & Training Spec. 4 58,353 67,689 77,025Human Resources Analyst 20 58,353 67,689 77,025Management Analyst 1 58,353 67,689 77,025Claims Analyst 3 58,353 67,689 77,025Information Systems Analyst II/I/Asst. 15 59,747 72,308 -Programmer Analyst III/II/I 6 59,747 72,308 -Transit Safety Officer 3 55,563 64,453 73,343Personnel Services Administrator 1 52,931 61,400 69,869Administrative Support Officer 1 48,805 55,686 63,366Executive Secretary 2 45,733 53,050 60,367Management Secretary 4 41,481 48,118 54,755Personnel Services Assistant 8 39,502 45,822 52,142Administrative Services Assistant 5 37,612 43,630 49,648Office Specialist II 10 35,994 43,463 -Total 136

Job Descriptions

Number of

Positions

Base Annual Rate

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Step MaxConstructionChief Construction Officer 1 154,767 179,530 204,292Deputy Dir., Rail Design & Construction 1 109,979 127,576 145,172Deputy Director, Highway Program 1 109,979 127,576 145,172Engineering Group Manager-Line Segment 1 99,766 115,729 131,691Design & Construction Mgr.-Vasona 1 95,020 110,223 125,426Design & Construction Mgr.-Rail Ext. (U) 1 95,020 110,223 125,426Project Systems Manager 1 95,020 110,223 125,426Facilities Design & Construction Manager 1 95,020 110,223 125,426Facilities Design Manager 1 86,179 99,968 113,757Systems Design Manager 1 86,179 99,968 113,757Transportation Engineering Manager 1 86,179 99,968 113,757Business Relations Manager 1 82,063 95,193 108,323Survey & Mapping Manager 1 82,063 95,193 108,323Principal Transportation Planner 1 82,063 95,193 108,323Manager-Construction Inspection 1 78,171 90,678 103,185Sr. Systems Design Engineer 1 74,476 90,517 -Sr. Transportation Engineer 7 74,476 90,517 -Sr. Architect 1 74,476 90,517 -Sr. Cost Coordinator 1 74,476 90,517 -Sr. Transportation Planner 1 74,437 86,347 98,256Sr. Land Surveyor 1 70,905 82,250 93,595Principal Construction Inspector 3 70,905 82,250 93,595Utilities Coordination Manager 1 70,905 82,250 93,595Sr. Accountant 1 67,531 78,336 89,140Associate Civil Engineer 2 63,679 77,375 -Associate Environmental Engineer 1 63,679 77,375 -Associate Electrical Engineer 1 63,679 77,375 -Associate Mechanical Engineer 2 63,679 77,375 -Associate Systems Design Engineer 2 63,679 77,375 -Associate Transportation Engineer 3 63,679 77,375 -Associate Architect 3 63,679 77,375 -Schedule Coordinator 1 63,679 77,375 -Contracts Administrator II/I/Asst. 1 62,054 75,095 -Associate Land Surveyor 2 61,254 71,055 80,856Business Systems Analyst II/I 3 59,747 72,308 -Management/Assoc. Mgmt. Analyst 1 58,353 67,689 77,025Utilities Coordinator 1 58,057 70,230 -Sr. Construction Inspector 11 58,057 70,230 -Engineering Technician III/II/I 7 55,088 66,667 -Assistant Transportation Engineer 9 54,719 66,539 -Assistant/Jr. Civil Engineer 2 54,719 66,539 -Assistant Architect 1 54,719 66,539 -

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Step MaxConstruction (Cont'd)Construction Inspector 19 52,758 63,835 -Office Support Supervisor 5 48,005 55,686 63,366Executive Secretary 2 45,733 53,050 60,367Accountant I 1 44,924 54,311 -Construction Materials Mgmt. Technician 1 43,052 52,027 -Engineering Technician I 1 43,052 52,027 -Accountant Assistant 2 41,065 49,606 -Engineering Aide 6 39,352 47,551 -Secretary 2 39,352 47,551 -Office Specialist II 11 35,994 43,463 -Total 135

Job Descriptions

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Positions

Base Annual Rate

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Step MaxFiscal ResourcesChief Financial Officer 1 133,689 155,079 176,470Controller 1 109,979 127,576 145,172Purchasing & Materials Manager 1 95,020 110,223 125,426Fiscal Resources Manager 4 95,020 110,223 125,426Contracts Manager 1 78,171 90,678 103,185Investment Program Manager 1 78,171 90,678 103,185Revenue Services Manager 1 78,171 90,678 103,185Mgr., Business Analysis & Debt Admin 1 74,437 86,347 98,256Purchasing Supervisor 1 67,531 78,336 89,140Sr. Accountant 8 67,531 78,336 89,140Sr. Contracts Administrator 2 70,905 82,250 93,595Sr. Construction Contracts Administrator 4 70,905 82,250 93,595Sr. Financial Analyst 1 67,531 78,336 89,140Sr. Internal Auditor 3 67,531 78,336 89,140Sr. Management Analyst 2 67,531 78,336 89,140Sr. Human Resources Analyst 1 67,531 78,336 89,140HR Analyst 2 58,353 67,689 77,025Accountant III/II/I 10 58,353 67,689 77,025Internal/Associate Internal Auditor 1 58,353 67,689 77,025Management Analyst 3 58,353 67,689 77,025Financial Analyst 3 58,353 67,689 77,025Const. Contracts Administrator II/I 11 62,054 75,095 -Contracts Administrator II/I/Asst. 9 62,054 75,095 -Contracts Administrator II (CEMA) 1 61,940 75,255 -Business Systems Analyst II/I 1 59,747 72,308 -Buyer III/II/I/Asst. 3 53,261 64,452 -Office Support Supervisor 1 48,005 55,686 63,366Administrative Support Officer 1 48,005 55,686 63,366Supervising Account Clerk 2 45,733 53,050 60,367Executive Secretary 2 45,733 53,050 60,367Buyer II/I/Asst. 5 47,962 58,057 -Accountant I 2 44,924 54,311 -Supervising Vault Room Worker 1 41,481 48,118 54,755Management Secretary 4 41,481 48,118 54,755Accountant Assistant/Acct. Clerk II 20 41,065 49,606 -Secretary 1 39,352 47,551 -Storekeeper 2 38,073 45,975 -Buyer Assistant 4 36,680 44,285 -Office Specialist II 4 35,994 43,463 -Vault Room Worker 5 32,911 39,717 -Messenger Driver 4 33,071 39,922 -Total 135

Job Descriptions

Number of

Positions

Base Annual Rate

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MinMid/Top

Step MaxDevelopment & Congestion Mgmt.Chief Development Officer 1 133,689 155,079 176,470Director, Planning & Development 1 127,323 147,695 168,066Director, Marketing & Customer Service 1 115,490 133,969 152,447Deputy Dir., Transit Plng & Programming 1 99,766 115,729 131,691Deputy Dir., Congestion Mgmt Plng Prgm 1 99,766 115,729 131,691Manager, Community Oureach 2 82,063 95,193 108,323Manager, Market Development 1 82,063 95,193 108,323Real Estate Manager 1 82,063 95,193 108,323Environment Planning Manager 1 82,063 95,193 108,323Principal Transportation Planner 3 82,063 95,193 108,323Principal Transportation Planner - P&G 1 82,063 95,193 108,323Customer Service Manager 1 78,171 90,678 103,185Sr. Transportation Planner 4 74,437 86,347 98,256Sr. Transportation Planner (U) 2 74,437 86,347 98,256Sr. Transportation Planner - P&G 4 74,437 86,347 98,256Senior Transportation Engineer 2 74,476 90,517 -Senior Environmental Planner 1 72,035 87,565 -Senior Real Estate Agent 3 70,905 82,250 93,595Public Information Manager 1 70,905 82,250 93,595Transportation Policy & Program Manager 1 70,905 82,250 93,595Senior Management Analyst 2 67,531 78,336 89,140Associate Transportation Engineer 1 63,679 77,375 -Associate/Asst/Jr. Real Estate Agent 2 63,561 76,945 -Environmental Planner II/II/I 5 63,264 76,579 -Transportation Planner III/II/I 9 63,264 76,579 -Transportation Planner III/II/I (U) 1 63,264 76,579 -Creative Services Program Manager 1 61,254 71,055 80,856Sales Program Manager 1 61,254 71,055 80,856Customer Services Supervisor 4 58,353 67,689 77,025Management Analyst 7 58,353 67,689 77,025Public Communcation Specialist II/I 15 53,786 65,069 -Graphic Designer II/I 4 50,063 60,615 -Office Support Supervisor 1 48,005 55,686 63,366Executive Secretary 4 45,733 53,050 60,367Senior Information Representative 4 43,035 48,922 -Secretary 4 39,352 47,551 -Transportation Planning Aide 1 36,680 42,663 -Office Specialist II 5 35,994 43,463 -Information Services Representative 29 31,096 44,450 -Total 134

Job Descriptions

Number of

Positions

Base Annual Rate

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APPENDIX B

Budgeted Positions by Division and Classification

FY 2000-01 FY 2002-03

Actual* Adopted Budget

Revised Budget Budget

Wages & Benefits (in $000's) 182,197$ 214,462$ 222,665$ 227,888$ 2.3%

POSITIONS BY DIVISION:Office of General Manager 32 41 45 36 -20.0%Office of General Counsel 7 9 9 9 0.0%Operations:

Administration 99 113 113 83 -26.5%Transportation ** 1,210 1,345 1,356 1,187 -12.5%Maintenance 693 771 795 741 -6.8%

Administrative Services 135 149 147 136 -7.5%Construction 106 137 145 135 -6.9%Fiscal Resources 121 139 150 135 -10.0%Development/Congestion Management:

Marketing & Develoment 80 88 91 73 -19.8%Planning & Development 37 43 43 34 -20.9%Congestion Management (Non-Transit) 20 28 26 27 3.8%

Total Positions 2,540 2,863 2,920 2,596 -11.1%

POSITIONS BY CLASSIFICAITON:Support Services 887 1,021 1,058 957 -9.5%Operators 1,067 1,143 1,143 1,049 -8.2%Operators (PT) 18 50 50 - -100.0%Operator Trainees 17 27 27 3 -88.9%Maintenance 531 594 616 560 -9.1%Total Transit 2,520 2,835 2,894 2,569 -11.2%Non-Transit 20 28 26 27 3.8%Total Positions 2,540 2,863 2,920 2,596 -11.1%

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

FY 2001-02 % of Change from FY 02

Revised

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APPENDIX C

Population Data for Santa Clara County by City

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

Source: U.S. Census Bureau; California Department of Finance - Demographic Research Unit (http://www.dof.ca.gov/HTML/DEMOGRAP/e-1text.htm)

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APPENDIX D

Ten Year Summary of Santa Clara County Employment Information (Annual Average)

In 000's 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001Civilian Labor Force*Employment 785.0 797.9 806.9 824.2 862.8 910.1 928.4 933.5 988.2 967.5 Unemployment 56.1 58.3 53.7 42.8 32.2 28.4 30.8 29.2 20.0 45.2 Total 841.1 856.2 860.6 867.0 895.0 938.5 959.2 962.7 1,008.2 1,012.7

Unemployment RateCounty 6.7% 6.8% 6.2% 4.9% 3.6% 3.0% 3.2% 3.0% 2.0% 4.5%State of California 9.1% 9.4% 8.6% 7.8% 7.2% 6.3% 5.9% 5.2% 4.9% 5.3%

Wage and Salary by Employment**Services 226.6 237.9 245.1 265.3 283.9 301.8 317.8 332.9 366.4 362.3 Manufacturing 236.8 231.7 226.0 231.2 245.9 258.2 261.3 250.7 261.9 254.0 Retail Trade 111.4 112.2 114.3 117.4 122.2 126.7 130.1 134.0 140.8 140.2 Government 88.8 87.9 88.3 87.8 87.4 88.5 88.9 91.4 94.5 94.6 Wholesale Trade 47.2 45.5 46.0 48.7 52.4 56.0 56.4 56.0 55.5 52.6 Construction and Mining 27.5 26.3 26.5 28.8 32.8 37.4 41.8 45.6 49.2 49.2 Finance, Insurance and Real Estate 31.5 31.5 30.0 28.7 30.0 30.6 31.8 32.3 32.3 33.4 Transportation and Public Utilities 22.4 23.6 23.8 24.0 25.4 27.2 28.3 28.3 29.4 30.2 Agriculture 5.1 5.4 5.1 4.5 5.1 5.1 5.2 5.3 5.0 4.5 Total 797.3 802.0 805.1 836.4 885.1 931.5 961.6 976.5 1,035.0 1,021.0

Source: California Department of Employment Development

** Wages and salary employment is reported by place of work.

* Labor force data are based upon place of residence. Employment includes self-employed, unpaid family workers, domestics, and workers involved in labor-management disputes.

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APPENDIX E

PROJECTS CLOSED OR SCOPE REDUCED BY THE CAPITAL IMPROVEMENT PROGRAM OVERSIGHT COMMITTEE (CIPOC)

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

Original Budget Total CIPOC Savings

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

Original Budget Total CIPOC Savings

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

Original Budget Total CIPOC Savings

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

Original Budget Total CIPOC Savings

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APPENDIX F

SANTA CLARA VALLEY TRANSPORTATION AUTHORITY FY 2002-2003 CAPITAL BUDGET SUMMARY

Estimated ProjectedApproved Recommended Recommended Total Total Net

Project Projects & Project Reimburse- VTA ProjectIn $000's Budgets Modifications Budgets ments Costs

Non-Revenue Vehicle Fleet Procurement Program -$ 1,083$ 1,083$ -$ 1,083$

Operating EquipmentRiver Oaks HVAC Scheduled Unit Replacement - 246 246 - 246 T-Signal Retrofit - 250 250 - 250 Facilities & Equipment Emergency Repair Allowance - 300 300 - 300 Maintenance Shop Equipment Replacement Program - 315 315 - 315 Total Operating Equipment - 1,111 1,111 - 1,111

Operating FacilitiesChaboya Maintenance Bay Pit Modifications - 551 551 - 551 Rail Maint Engineering Office & ISG Disaster Recov Rm - 239 239 - 239 Chaboya Restrooms Rehabilitation - 448 448 - 448 Pavement Management Program - 487 487 - 487 Roofing Management Program - 299 299 - 299 Painting Management Program - 350 350 - 350 Total Operating Facilities - 2,374 2,374 - 2,374

OtherOffice Furniture Modifications & Reconfigurations - 100 100 - 100 Total Other - 100 100 - 100

Total New Projects -$ 4,668$ 4,668$ -$ 4,668$

Passenger FacilitiesPalo Alto Depot Renovation 1,060$ 537$ 1,597$ (1,211)$ 386$ Total Passenger Facilities 1,060 537 1,597 (1,211) 386

Rail Facility ExpansionDowntown/East Valley Conceptual Design 7,430 2,311 9,741 (9,741) - Total Rail Facility Expansion 7,430 2,311 9,741 (9,741) -

Total Augmented Projects 8,490$ 2,848$ 11,338$ (10,952)$ 386$

ADAADA Pass Access & Sign Pro 2,730$ -$ 2,730$ (1,447)$ 1,283$ ADA Platforms & Signs 1,900 - 1,900 (1,480) 420 Total ADA 4,630 - 4,630 (2,927) 1,703

Bus Facility ExpansionNorth Yard Reconstruction 37,267 - 37,267 (20,232) 17,035 Line 22 Improvements 3,599 - 3,599 (790) 2,809 Bus Facilities Expansion 15,451 - 15,451 - 15,451 Cerone Division Rehab & Expansion 25,677 - 25,677 (8,400) 17,277 Total Bus Facility Expansion 81,994 - 81,994 (29,422) 52,572

Info. Systems, Communications & TechnologyRadio Communications System 19,545 - 19,545 (12,202) 7,343 Records Archival & Retrieval 288 - 288 - 288 Transit Facilities CCTV Demonstration Project 300 - 300 - 300 Enhance Database Integrity 30 - 30 - 30

CARRYOVER PROJECTS

NEW PROJECTS

AUGMENTED PROJECTS

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Estimated ProjectedApproved Recommended Recommended Total Total NetProject Projects & Project Reimburse- VTA Project

In $000's Budgets Modifications Budgets ments CostsElectronic Scheduling & Run-cutting Software 800 - 800 - 800 Business warehouse Hardware Upgrade- Phase 1 150 - 150 - 150 ISG Help Desk Phone System 14 - 14 - 14 Communications Recording System 152 - 152 - 152 BDT Operator Card Swipe System 100 - 100 - 100 PCST Project 8,050 - 8,050 - 8,050 Business Warehouse Data Extraction Tools 350 - 350 - 350 Exchange Mail Server 70 - 70 - 70 Internet Development Suite 50 - 50 - 50 IVR Phone System Replacement 150 - 150 - 150 River Oaks Telephone System Replacement 150 - 150 - 150 Voice Mail System Replacement 90 - 90 - 90 LAN Upgrade 223 - 223 - 223 FY01 Equipment Purchases 189 - 189 - 189 Total Info. Sys., Comm., & Technology 30,701 - 30,701 (12,202) 18,499

Non-Revenue Vehicles 4,012 - 4,012 (209) 3,803

Operating EquipmentParts Carousel 650 - 650 - 650 LRT Signal Priority Retofit 300 - 300 - 300 MOW Multi-Purpose Vehicle 225 - 225 - 225 Rail Rehabilitation Project 2,700 - 2,700 (2,000) 700 Overhead Safety Restraint at Cerone Minor Maint 70 - 70 - 70 Color Printer 50 - 50 - 50 Facilities & Equipment Emergency Repair Allowance 180 - 180 - 180 Scheduled Maintenance Equipment Replacement 410 - 410 - 410 Woz Way Portable Crossover 272 - 272 - 272 River Oaks HVAC Replacement 60 - 60 - 60 Generator Replacement 60 - 60 - 60 Parts Carousel at North Division 100 - 100 - 100 Chaboya Transformer Replacement 100 - 100 - 100 Total Operating Equipment 5,177 - 5,177 (2,000) 3,177

Operating FacilitiesOperator Facilities 675 - 675 - 675 VTA Signage Program 3,223 - 3,223 - 3,223 Card Readers at Operating Divisions 517 - 517 - 517 ACE Track Improvements 610 - 610 - 610 Eastridge Transit Center Modifications 290 - 290 - 290 Chaboya Maintenance Training Firewall 164 - 164 - 164 Bus Stop Duckout & Pavement Restoration Program 810 - 810 - 810 Guadalupe Automatic Fire Supression 70 - 70 - 70 Guadalupe Vehicle Wash Modifications 744 - 744 - 744 LRT Drainage Improvements at Bayshore/Manila 100 - 100 - 100 Painting Management Program 388 - 388 - 388 Pavement Management Program 1,099 - 1,099 - 1,099 Roofing Management Program 100 - 100 - 100 Emergency Operations Center 110 - 110 - 110 HazMat Removal 160 - 160 - 160 Total Operating Facilities 9,060 - 9,060 - 9,060

Passenger FacilitiesMountain View Transit Center 6,250 - 6,250 (5,400) 850 Palo Alto Caltran Transit Center 2,542 - 2,542 (2,162) 380 Elevator Floor Replacement 560 - 560 - 560 Monterey Highway Bus Stop 3,909 - 3,909 (443) 3,466

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Estimated ProjectedApproved Recommended Recommended Total Total NetProject Projects & Project Reimburse- VTA Project

In $000's Budgets Modifications Budgets ments CostsI-880 Smart Park 881 - 881 (780) 101 Guadalupe Corr. Platform Retrofit - Phase 2 38,409 - 38,409 - 38,409 De Anza College Transit Center 3,767 - 3,767 - 3,767 Guadalupe Escalator Retrofit 205 - 205 - 205 VETAG 111 - 111 - 111 Total Passenger Facilities 56,634 - 56,634 (8,785) 47,849

Rail Facility ExpansionTasman West 333,656 - 333,656 (316,758) 16,898 LR Facility Expansion 36,325 - 36,325 (16,090) 20,235 Guadalupe Corridor Right-Of-Way Disposition 652 - 652 - 652 Silicon Valley Rapid Transit Corridor 45,000 - 45,000 (45,000) - Metro LRT Station Reconstruction 350 - 350 (350) - Newhall/BART Maintenance Facility 55 - 55 - 55 Total Rail Facility Expansion 416,038 - 416,038 (378,198) 37,840

Revenue Vehicles & EquipmentReplacement Coaches 49 17,232 - 17,232 (12,618) 4,614 Articulated Coaches 40 22,110 - 22,110 (18,691) 3,419 Replacement Coaches 40 14,204 - 14,204 (11,449) 2,755 Cameras on Transit Vans 4,341 - 4,341 - 4,341 Bus Farebox Replacement 100 - 100 - 100 Revenue Vehicles (17 Repl + 15 Expn) 13,592 - 13,592 (4,626) 8,966 Clean Diesel Engine 3,640 - 3,640 (1,820) 1,820 Bus Fleet Procurement - 52 buses 19,623 - 19,623 (10,610) 9,013 Emissions Retrofit of Bus Diesel Engines 3,829 - 3,829 - 3,829 MTC Regional Express Bus Procurement 5,345 - 5,345 (4,989) 356 Zero-Emission Buses (ZEB) Demonstration Project 18,450 - 18,450 (18,450) - 70 Low Floor LR Vehicles 202,201 - 202,201 (202,202) (1) Total Revenue Vehicles & Equipment 324,667 - 324,667 (285,455) 39,212

OtherSan Carlos Remediation 55 - 55 - 55 Construction Claims Support 2,919 - 2,919 - 2,919 Office Furniture 234 - 234 - 234 Rail Systems Design Consultant Services 100 - 100 - 100 Surveying GPS System 104 - 104 - 104 Check Stuffing Machine 18 - 18 - 18 General Manager Office Reconfiguration 71 - 71 - 71 Total Other 3,501 - 3,501 - 3,501

Total Carryover Projects 936,414$ -$ 936,414$ (719,198)$ 217,216$

Total Capital Projects 944,904$ 7,516$ 952,420$ (730,150)$ 222,270$

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APPENDIX G

Santa Clara Valley Transportation Authority FY 2002-2003 Budget

Purchase of Non-Revenue Vehicles (NRV’s)

Type Quantity CostPassenger Vehicles 23 547,300$ Heavy-Duty & Specialized 11 536,000 Total 34 1,083,300$

Passenger Vehicles:Sedans 10 190,000$ Full Cargo Vans 2 48,300 Mini-Cargo Vans 2 41,000 Mini-Passenger Vans 4 93,000 Activans 5 175,000 Total 23 547,300

Heavy-Duty & Specialized Vehicles:Pass Facilities Maintenance Truck 1 44,000 Yard/Road Call Truck 1 65,000 Mid-size Truck UT w/Crane 1 75,000 11-15 GVW Sweeper Truck 1 50,000 RAV4 EV Lease Renewal 3 39,000 Total 7 273,000

Total Replacements 30 820,300$

Heavy-Duty & Specialized Vehicles:Pass Facilities Maintenance Truck 1 44,000$ 33,000 GVW High Rail Platform Truck 1 172,000 3/4-ton Diesel Utility Truck 1 40,000 Tilt Trailer 1 7,000 Total Additions 4 263,000$

SUMMARY - REPLACEMENT AND ADDITIONAL VEHICLES

REPLACEMENTS

ADDITIONS

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APPENDIX H

FY 2000-01 FY 2001-02 FY 2002-03Expenditure Expenditure

Actual Plan PlanREVENUESVTA Employer Contribution 7,349$ 8,111$ 11,253$ One-Time Contribution - - - Interest Income 4,756 16,560 16,500 Net Appreciation (Depreciation) on Investments 15,257 - - Total Revenues 27,362 24,671 27,753

EXPENSESOperating ExpensesPension Payments to Retirees 6,686 7,415 8,333 Medical/Psychiatric Evaluations - 48 54 Administrative Expenses 936 725 975 Total Operating Expenses 7,622 8,188 9,362

Contingencies - 5 5

Total Expenses 7,622 8,193 9,367

Net Increase in Plan Assets * 19,740$ 16,478$ 18,386$

Beginning Fund Balance 187,952$ 207,691$ 224,169$ Ending Fund Balance 207,691$ 224,169$ 242,555$

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

(In $000's)

SANTA CLARA VALLEY TRANSPORTATION AUTHORITYVTA/ATU Pension Plan

Fiscal Year 2002-2003 Expenditure Plan

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APPENDIX I

Santa Clara Valley Transportation Authority Fee Schedules

FY 2002-03 PROPOSED BASIC FARE STRUCTURE FOR BUS, LIGHT RAIL AND

PARATRANSIT SERVICES

Fare Category Fare Adult:

Single Ride $1.40 Day Pass $4.00 10 Tokens $10.00 Monthly Pass $45.00 Annual Pass $495.00

Youth:

Single Ride $0.85 Day Pass $2.50 10 Tokens $5.50 Monthly Pass $27.00 Annual Pass $297.00

Senior/Disabled:

Single Ride $0.45 Day Pass $1.25 Monthly Pass $11.00 Annual Pass $121.00

Express:

Single Ride $2.25 Day Pass $6.00 Monthly Pass $72.00 Annual Pass $792.00

Paratransit:

One-Way Trip $2.80 Companion - One-Way Trip $2.80 Personal Care Attendant No Charge Open Return Trip $4.70 No Show Charge $2.80 Second Vehicle Service (No Show Return Trip) $12.00 Same-Day Service $10.00

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ECO PASS PRICING – These prices are based on the number of employees and the level of VTA service at a given work site. Eco passes are purchased for all full-time, permanent employees at one discounted price per employee. These prices are prorated if an employer joins the program mid -year. The minimum annual contract for Eco Pass is $1,150.

Number of Employees Employer Location/ Service Level 1 to 99 100 to 2,999 3,000 to

14,999 15,000+

Downtown San Jose $92.00 $69.00 $46.00 $23.00 Areas Served by Bus & LRT $69.00 $46.00 $23.00 $11.50 Areas Served by Bus Only $46.00 $23.00 $11.50 $5.75 There two additional service options: Option I – Dumbarton and Highway 17 Express

Number of Employees Employer Location/ Service Level 1 to 99 100 to 2,999 3,000 to

14,999 15,000+

Downtown San Jose $105.80 $80.50 $55.20 $28.75 Areas Served by Bus & LRT $82.80 $57.50 $32.20 $17.25 Areas Served by Bus Only $59.80 $34.50 $20.70 $11.50

Option II – Caltrain Eco Pass Pilot Program, Dumbarton and Highway 17 Express. The minimum annual contract for Caltrain Eco Pass Program is $3,275.

Number of Employees Employer Location/ Service Level 1 to 99 100 to 2,999 3,000 to

14,999 15,000+

Downtown San Jose $177.00 $114.00 $71.00 $43.00 Areas Served by Bus & LRT $154.00 $91.00 $48.00 $31.50 Areas Served by Bus Only $131.00 $68.00 $36.50 $25.75 RESIDENTIAL PASS PRICING – These prices are based on the number of residents and the level of VTA service at a given community. Eco passes are purchased for all residents at one discounted price. These prices are prorated if an employer joins the program mid-year. A community must have a minimum of 25 units.

Number of Residents Community Location/ Service Level 1 to 99 100 to 2,999 3,000 to

14,999 15,000+

Downtown San Jose $92.00 $69.00 $46.00 $23.00 Areas Served by Bus & LRT $69.00 $46.00 $23.00 $11.50 Areas Served by Bus Only $46.00 $23.00 $11.50 $5.75

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Communities can “upgrade” their Eco Pass to include Highway 17 and Dumbarton Express service. The additional service option must be purchased for all residents at the community.

Number of Residents Community Location/ Service Level 1 to 99 100 to 2,999 3,000 to

14,999 15,000+

Downtown San Jose $105.80 $80.50 $55.20 $28.75 Areas Served by Bus & LRT $82.80 $57.50 $32.20 $17.25 Areas Served by Bus Only $59.80 $34.50 $20.70 $11.50 RATES FOR PLAN SHEETS, BID SHEETS AND SPECIFICATIONS (Consistent with standard practice, this concerns the sale of documents and records to individuals and contractors who have projects that impact VTA)

Sale of Plan Sheets $10.00 Per Sheet Sale of Bid Plans/Specifications $2.00 Per Item

PERMIT FEE SCHEDULE (To protect VTA properties and facilities when construction activities are performed on VTA properties and facilities by outside parties) Permit Application Fee (Minimum fee charged for all permit applications processed. Additional fees may be assessed.)

non-refundable $255.00

Light Rail Crossings – Plan Check and Inspection: Directional Bore Method per crossing $545.00 Bore and Jack Method per crossing $805.00 Bus and Transit Facility – Plan Check and Inspection:

New P.C.C. Bus Pad per pad $515.00 New P.C.C. Shelter Pad per site $280.00 Material Lab Fee (If VTA provides service) Standard P.C.C. Bus Pad (10 ft. by 50 ft.) includes: $1,200.00

1) Sub Base Compaction Tests 2) Material Analysis 3) Base Rock Compaction Tests and Material Analysis

4) 3 Concrete Cylinders or 2 Beams Asphalt Testing per Location includes compaction test and material analysis (All retests for failed compaction billed

$450.00

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

Engineering Fees $55.00 Construction Inspector Fees $49.00 Office Administrative Support $29.00

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GLOSSARY Accrual Accounting A method of accounting where revenues are recognized in the accounting period in which they are earned and become measurable, and expenses are recognized in the period incurred, if measurable. ADA Americans with Disabilities Act. Federal civil rights legislation that, among other things, gives disabled persons the right to equal access to fixed route transit service or to comparable paratransit service if they are unable to use fixed route transit. Adopted Budget The official budget that has been adopted by VTA Board of Directors. Appropriation Legal authorization expressed by budget unit, fund, and cost group granted by the Board to make expenditures and to incur obligations for specific purposes. Operating appropriations are time period limited and must be expended or encumbered within the time limits. Capital appropriations have no expiration. Articulated Bus A bus usually 55 feet or more in length that bends at a connecting point when the bus turns a corner. BAAQMD Bay Area Air Quality Management District. Commonly referred to as the “air district,” this agency regulates industry and employers to keep air pollution in check, and sponsors programs to clean the air in the San Francisco Bay Area. Bond Long-term debt issued by an agency to help finance new acquisitions of property, facilities, and equipment. Budget Unit An organizational unit is identical to a cost center. Capital Budget A portion of the annual budget that appropriates funds for the purchase of capital equipment items or for capital projects. The capital budget includes funds for capital equipment purchases, such as vehicles, construction of new facilities, office equipment, and machinery. They are distinguished from operating items due to their value (greater than $5,000) and projected useful life (greater than one year).

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Capital Project Expenditure for tangible long-lived assets, such as property and equipment used by VTA in its operations, which is expected to benefit future periods. Commuter Rail Local and regional passenger train service between a central city, its suburbs, or another central city. Caltrain is an example of commuter rail service. Cost Group VTA uses the following expenditure and cost-reduction cost groups such as labor costs, non-labor costs, Caltrain contribution, ADA, ACE, debt service and revenues. They are the lowest units of budget funding control. Cost Recovery Ratio A measure of the proportion of transit operating expenses covered by non-subsidy sources. It is calculated by dividing all of the transit operator’s non-subsidy revenues, such as fare box revenue, parking fees, and advertising fees, by the operator’s total transit operating expense. Debt Service The amount of money required to pay interest and principal on VTA’s borrowed funds. Division An organizational entity consists of cost centers. Enterprise Fund A distinct fiscal entity whose resources are dedicated to a specific purpose, and in which all resources and expenditures must balance. Expenditure appropriations may exceed revenues if an asset balance is available from the prior period. Fare Box Revenue The value of cash, tickets, and pass receipts given by passengers as payment for public transit rides. Fiscal Year Period of any 12 consecutive months used as an accounting period. VTA’s fiscal year is July 1 through June 30. FTA Federal Transit Administration, formerly the Urban Mass Transportation Administration (UMTA). FTA provides capital and operating funds to VTA. Fund A fiscal or accounting entity with a self-balancing set of accounts. A fund is established for the purpose of carrying on specific activities in accordance with specific limitations.

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Grants A contribution by a government or other organization to support a particular function. Grants may be classified as either operational or capital, depending upon the grantee. MTC Metropolitan Transportation Commission. MTC is recognized by the state as the Regional Transportation Planning Agency (RTPA) and by the federal government as the Metropolitan Planning Organization (MPO) for the nine counties in the San Francisco Bay Area. It has 19 commissioners, of which 14 are voting members appointed by local elected officials. In the five most populous counties, including Santa Clara County, two commissioners are appointed – one by the county board of supervisors and one by the cities selection committee in the county. In the four less populous counties, the cities nominate candidates to the board of supervisors, which appoints one. Two other voting members on MTC, to total 16, represent the Association of Bay Area Governments (ABAG) and the San Francisco Bay Conservation and Development Commission (BCDC). In addition, there are three non-voting members on MTC, representing the state’s Business, Transportation & Housing Agency, the U.S. Department of Housing and Urban Development, and the U.S. Department of Transportation. Operating Budget A plan of expenditures and proposed sources of financing current service. The operating budget does not include capital or reserves. Paratransit Comparable transportation service required by the Americans with Disabilities Act (ADA) of 1990 for individuals with disabilities who are unable to use fixed-route transportation systems. Reserves Amount of funding held back in order to meet probable or possible demands. SRTP Short-Range Transportation Plan. A document that catalogues operating statistics for the transit system and projects future improvements that are scheduled over a ten-year time frame. The document includes capital and operating budgets. STA State Transit Assistance. Half of the revenues annually budgeted through the state budget process for the Transportation Planning & Development Account (TP&D) are appropriated to the STA Program. Funds are used for mass transit operations, transit coordination projects, and transportation planning. These funds are apportioned to the regional transportation planning agencies according to a formula based on population and annual transit operator revenues.

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TDA Transportation Development Act. An act passed by the state Legislature in 1972 allowing each county to elect to participate in a quarter-cent state sales tax program for public transportation purposes. TDA sales tax revenues are apportioned by the state, through the regional transportation planning organizations, to each participating county based on the amount collected within that county.