810 Mission Avenue Oceanside, CA 92054 Agenda 760) 966-6500 Thursday, January 19, 2017 760) 967-2001 (fax) www.GoNCTD.com Special Meeting: 12:00 P.M. Location: Board Room 810 Mission Avenue Oceanside, CA 92054 Regular Meeting: 2:00 P.M. BOARD OF DIRECTORS Mark Packard Councilmember, City of Carlsbad Board Chair Location: Oceanside City Council Chambers Second Floor, City Hall North, 300 N. Coast Highway, Oceanside, CA 92054 Rebecca Jones Vice Mayor, City of San Marcos Board Vice-Chair Dave Druker Councilmember, City of Del Mar Tony Kranz MISSION North County Transit District’ s mission is to deliver safe, convenient, reliable and userfriendly public transportation services. Deputy Mayor, City of Encinitas Ed Gallo Councilmember, City of Escondido Chuck Lowery Deputy Mayor, City of Oceanside Bill Horn VISION Our vision is to build an integrated transit system that enables our customers to travel easily and efficiently throughout our growing region. Supervisor, County of San Diego Mike Nichols Mayor, City of Solana Beach John J. Aguilera For individuals with disabilities, NCTD will provide assistive services. To obtain such services or copies of documents in an alternate format, please call or write, a minimum of 72 hours prior to the event, to request these needed reasonable modifications. NCTD will make every attempt to accommodate requests that do not give 72 hour notice. Please contact the Clerk of the Board at (760) 966-6553. Councilmember, City of Vista EXECUTIVE DIRECTOR Matthew O. Tucker For individuals with sensory disabilities, this document is available in alternate formats. For information, please contact the Clerk of the Board at 760/ 966-6553. Persons with hearing impairment, please use the California Relay Service ( CRS): 800/ 735-2929 TTY; 800/ 735-2922 voice; 800/ 855-3000 Spanish. CRS Customer Service: 877/ 632-9095 English or 877/ 419-8440 Spanish. GENERAL COUNSEL Lori A. Winfree Any writings or documents provided to a majority of the members of the NCTD Board of Directors regarding any item on this agenda will be made available for public inspection at the office of the Clerk of the Board located at 810 Mission Avenue, Oceanside, CA 92054, during normal business hours. 1 SPECIAL MEETING BEGINNING AT 12:00 PM CALL TO ORDER ROLL CALL OF BOARD MEMBERS SAFETY BRIEF AND EVACUATION PROCEDURES – Anthony Flores, Clerk of the Board PUBLIC COMMUNICATIONS There is a time limit of 15 minutes for this section of Public Communications and each speaker is limited to three minutes for their presentation. All persons wishing to address the Board during the meeting must complete a “Request to Speak” form. These forms are provided in a box at the table in the hallway, and must be completed and given to the Clerk of the Board before that agenda item is called. A. CLOSED SESSION ITEMS 1 AND 2 1. Closed Session Pursuant to Government Code Section 54956.9(d)(1) – Conference with Legal Counsel – Existing Litigation – Noel Buckhanon v. NCTD, San Diego Superior Court Case No. 37-2016-00038114-CU-OE-NC (S) Lori A. Winfree, General Counsel) 2. Closed Session Pursuant to Government Code Section 54956.9(d)(4) – Conference with Legal Counsel – Anticipated Litigation – Significant Exposure to Litigation, One Potential Case (S) Lori A. Winfree, General Counsel) REGULAR MEETING BEGINNING AT 2:00 PM CALL TO ORDER ROLL CALL OF BOARD MEMBERS PLEDGE OF ALLEGIANCE TO THE AMERICAN FLAG SAFETY BRIEF AND EVACUATION PROCEDURES – Anthony Flores, Clerk of the Board CHANGES TO THE AGENDA PUBLIC COMMUNICATIONS There is a time limit of 15 minutes for this section of Public Communications and each speaker is limited to three minutes for their presentation. All persons wishing to address the Board during the meeting must complete a “Request to Speak” form. These forms are provided in a box at the table in the hallway, and must be completed and given to the Clerk of the Board before that agenda item is called. 2 A. MINUTES Approve Minutes for NCTD’s Regular Board Meeting of December 15, 2016 (S) Anthony Flores, Clerk of the Board) B. CONSENT ITEMS 1 – 12 Items reviewed and recommended for approval by the Executive Committee, Marketing, Service Planning and Business Development Committee (MSPBD), Performance, Administration and Finance Committee PAF), Staff (S), Board (B) or Board Workshop (W) All matters listed under CONSENT are considered by the Board to be routine and will be enacted by one motion. There will be no separate discussion on these items prior to the time the Board votes on the motion, unless members of the Board, the Executive Director, or the public, request specific items to be discussed and/or removed from the Consent Calendar for separate action. A request from the public to discuss an item must be filed with the Clerk of the Board on the “Request to Speak” form before that agenda item is called. ITEMS PULLED FROM CONSENT WILL BE MOVED TO THE END OF THE AGENDA 1. Receive Monthly Intergovernmental Affairs Report (S) (Attachments 1A and 1B) Bridget Hennessey, Intergovernmental Affairs Officer) 2. Receive Quarterly Report of Contract Actions Issued by NCTD Under the Executive Director’s Authority (S) (Attachment 2A) Samuel Elmer, Chief Procurement and Contract Administration Officer) 3. Adopt Resolution No. 17-01 Approving Revisions to Board Policy No. 24 – Employee Drug and Alcohol Policy (S) (Attachment 3A) Karen L. Tucholski, Chief Administrative Officer) 4. Award Contract No. 17026 to Herzog Technologies, Inc. for Grade Crossing Control Upgrades (S) Eric Roe, Deputy Chief Operations Officer – Rail Systems) 5. Authorize the Executive Director to Execute Task Order No. 2 for the Preparation of a Project Study Report (PSR) for the East Division Maintenance Facility (S) Andrew Bohnert, Chief Development Officer) 6. Authorize the Executive Director to Execute Task Order No. 1 to Lopez Engineering Under Contract No. 17005 for an Arc Flash Analysis and to Develop an Incident Energy, Safety Training, and Electrical Safety Program (S) Andrew Bohnert, Chief Development Officer) 7. Authorize the Executive Director to Finalize and Execute an Exhibit A for the Refurbishment of the Train Wash System at the SPRINTER Operations Facility Pursuant to the First Amended and Restated Addendum 18 to the Master Memorandum of Understanding Between the San Diego Association of Governments, San Diego Metropolitan Transit System, and North County Transit District (S) Andrew Bohnert, Chief Development Officer) 3 8. Authorize the Executive Director to Execute Amendment No. 1 to Task Order No. 5 Under Contract No. 16061 to Jacobs Engineering Inc. to Continue Railroad Bridge Supervision and Inspection Services for Los Penasquitos Lagoon Bridge Replacement Project (S) Andrew Bohnert, Chief Development Officer) 9. Award Contract No. 17030 to FELLFAB Corporation for COASTER Seat Cushion Replacement (S) Don Filippi, Chief Operations Officer – Rail) 10. Adopt 2017 Legislative Agenda (S) (Attachment 10A) Bridget Hennessey, Intergovernmental Affairs Officer) 11. Ratify Purchase Order No. 31910-OP Awarded to Patriot Environmental Services and Purchase Order No. 32930-OP to OTIS Elevator Company for an Exigent Cleanup and Inspection of the Elevator at Solana Beach COASTER Station (S) Andrew Bohnert, Chief Development Officer) 12. Ratify Purchase Order Nos. 32938-OP and 32939-OP Awarded to Global Power Group for an Exigent Repair of the Emergency Generator at NCTD General Administrative Offices and SPRINTER Operations Facility (S) Andrew Bohnert, Chief Development Officer) C. OTHER BUSINESS ITEMS 13 – 18 13. Election of Board Chair and Vice Chair for Calendar Year 2017 (S) Anthony Flores, Clerk of the Board) 14. Approve NCTD Board and External Committee Appointments for Calendar Year 2017 (S) Attachments 14A and 14B) Anthony Flores, Clerk of the Board) 15. Set Public Hearing for February 16, 2017 and Authorize Staff to Publish Notice for Consideration of Adoption of Proposed Amended FY 2017 Operating Budget and FY2017FY2021 Capital Improvement Program and Release Budget Documents to the Public (S) Attachment 15A) Luz Cofresí-Howe, Chief Financial Officer) 16. Approve Proposed Capital Improvement Program for FY 2018 - 2022 for Amendment to the Regional Transportation Improvement Program (S) (Attachments 16A – 16D) Luz Cofresí-Howe, Chief Financial Officer) 17. Authorize the Executive Director to Execute Revision No. 1 to Exhibit A-2 for Los Peñasquitos Lagoon Bridge Replacements Project Pursuant to the First Amended and Restated Addendum 18 to the Master Memorandum of Understanding Between the San Diego Association of Governments, San Diego Metropolitan Transit System, and North County Transit District (S) Andrew Bohnert, Chief Development Officer) 18. Authorize the Executive Director to Award Contract No. 17033 to MV Transportation, Inc. for Combined Fixed Route Bus, ADA Paratransit, and Specialized Transportation Operations and Maintenance Services (S) (Attachment 18A – 18C) Damon Blythe, Deputy Chief of Transit Operations Planning ) 4 D. INFORMATIONAL ITEMS 19 AND 20 19. Presentation: Receive FY 2016 Financial Audit Results (S) Luz Cofresí-Howe, Chief Financial Officer) 20. Receive a Presentation Regarding the Status of the Positive Train Control Program (S) Eric Roe, Deputy Chief Operations Officer – Rail Systems) EXECUTIVE DIRECTOR’S REPORT BOARD MEMBER REPORTS, COMMENTS AND CORRESPONDENCE REMAINING PUBLIC COMMUNICATIONS For any remaining speakers who have completed a “Request to Speak” form . ADJOURNMENT CERTIFICATIONS AND RULES (FOR BOARD AND PUBLIC INFORMATION) Posting of Board Agenda (Page 7) Rules for Public Speakers at meetings of the North County Transit District (Page 8) Upcoming Meetings: Regular Board Meeting: February 16, 2017 at 2:00 p.m. Regular Board meeting will be held at City of Oceanside City Council Chambers, Second Floor, City Hall North, 300 N. Coast Highway, Oceanside, CA 92054 5 MAP OF NCTD ADMINISTRATIVE OFFICES The North County Transit District Administrative Offices is located at 810 Mission Avenue, Oceanside, CA 92054 and is accessible by the COASTER NCTD Commuter Rail), SPRINTER ( NCTD Light Rail), and the BREEZE NCTD Bus). Please log onto www.goNCTD.com to check our current routes and schedules, or call 1-800-COMMUTE. 6 MAP OF CITY OF OCEANSIDE COUNCIL CHAMBERS The City of Oceanside Council Chambers is located at Second Floor, City Hall North, 300 North Coast Highway, Oceanside, CA 92054 and is accessible by the COASTER (NCTD Commuter Rail), SPRINTER (NCTD Light Rail), and the BREEZE (NCTD Bus). Please log onto www.goNCTD.com to check our current routes and schedules, or call 1-800-COMMUTE. 7 January 12, 2017 To: North County Transit District Board Members From: Clerk of the Board Subject: POSTING OF BOARD AGENDA In Compliance with the Ralph M. Brown Act, as Amended, the following information is provided. The Agenda for this meeting of the Board was posted as follows: Meeting Date & Time: January 19, 2017 at 2:00 p.m. Posted At: 300 N. Coast Hwy., Oceanside, CA Posted At: 810 Mission Avenue, Oceanside, CA Posted Online At: www.goNCTD.com Date & Time of Posting: January 12, 2017 at 5:00 p.m. Posted By: Anthony Flores, Clerk of the Board 8 Rules for Public Speakers at Meetings of the North County Transit District Per Board policy, all public communications at meetings of the North County Transit District shall be made and received in accordance with the following procedures: 1. COMMENTS NOT ON AGENDA A. Total time limit all speakers: Beginning of meeting: Fifteen (15) minutes End of meeting: No time limit. B. Time limit per speaker per meeting: Three (3) minutes, with no donation of time allowed. C. Priority: First come, first served. All speaker slips will be numbered as the Clerk of the Board receives them. Those not allowed to speak at the beginning of the meeting due to limit stated above, will be called at the end of the meeting. D. Order on agenda: Items will be heard at the beginning of the meeting and if the time limit stated in Paragraph A is exhausted, those who filled out a speaker slip and have not yet spoken, will be given an opportunity to speak at the end of the meeting under “Remaining Public Communications.” E. Comments not addressing items on the agenda are out of order. 2. TIME LIMITS FOR ADDRESSING MATTERS ON THE AGENDA A. Total time limit: None. B. Time limit per speaker: Three ( 3) minutes, with one donation of three minutes, for a maximum of six minutes. C. These rules apply to both public hearing and non-public hearing items listed on the agenda. D. Comments made not germane to the subject matter of the agenda item being considered are out of order. 3. CUTOFF FOR TURNING IN SPEAKER SLIPS A. Speakers wishing to speak to an item on the Board Agenda must submit a speaker slip to the Clerk of the Board before that agenda item is called. Speaker slips will be available at the meeting. B. Speakers turning in slips after discussion begins on an item will be heard at the end of the meeting under “Remaining Public Communications.” 4. MODIFICATION OF RULES BY CHAIR A. The Board Chair may, in his or her absolute discretion, relax the requirements of these rules. However, a decision of the Chair to do so in one instance shall not be deemed a waiver of the rules as to any other instance or matter. 9 MINUTES OF THE REGULAR MEETING OF THE NORTH COUNTY TRANSIT DISTRICT BOARD OF DIRECTORS HELD DECEMER 15, 2016 CALL TO ORDER Mark Packard, Board Chair, called the regular meeting to order at 2:00 p.m. ROLL CALL OF BOARD MEMBERS 1. Mark Packard (City of Carlsbad); 2. Chuck Lowery (City of Oceanside); 3. Tony Kranz (City of Encinitas); 4. John Aguilera (City of Vista); 5. Ed Gallo (City of Escondido); 6. Bill Horn (County of San Diego); 7. Dave Druker (City of Del Mar); 8. Mike Nichols (City of Solana Beach); 9. Rebecca Jones (City of San Marcos); PLEDGE OF ALLEGIANCE TO THE AMERICAN FLAG Vice-Chair Jones led the Pledge of Allegiance to the American Flag. SAFETY BRIEF Anthony Flores, Clerk of the Board, provided a presentation on emergency evacuation procedures. CHANGES TO THE AGENDA Anthony Flores, Clerk of the Board, advised the Board that there were no changes to the agenda. PUBLIC COMMUNICATIONS None APPROVAL OF MINUTES OF THE NOVEMBER 17, 2016 REGULAR BOARD MEETING ON THE MOTION OF BOARD MEMBER KRANZ TO APPROVE THE MINUTES OF NOVEMBER 17, 2016, SECONDED BY VICE-CHAIR JONES. AYES: PACKARD, KRANZ, NICHOLS, LOWERY, GALLO, HORN, AGUILERA, JONES NOES: NONE ABSENT: NONE ABSTAIN: DRUKER MOTION CARRIES. CONSENT ITEMS 1. Receive Monthly Intergovernmental Affairs Report 2. Receive the Board Committee Preference Selection Memorandum 3. Adopt the Board Meeting Schedule for Calendar Year 2017 4. Receive the Nominations for NCTD Chair and Vice-Chair 5. Adopt Resolution 16-12 Authorizing the Executive Director and/or his Designees to Execute the Certifications and Assurances and Authorized Agent Form for the Low Carbon Transit Operations Program Under the Transit, Affordable Housing and Sustainable Communities Program as Created by Senate Bill 862 6. Adopt Resolution 16-13 Authorizing the Executive Director and/or his Designees to Execute the Certifications and Assurances and Authorized Agent Form for the Public Transportation Modernization, Improvement, and Service Enhancement Account Program, as Created by Proposition 1B, the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006 7. Adopt Resolution 16-14 Authorizing the Executive Director and/or his Designees to Take any and all Actions Necessary on Behalf of the North County Transit District for the Purpose of Obtaining Financial Assistance Through the State of California Department of Transportation as Authorized Under 49 CFR 5311/Fixing America’s Surface Transportation Act (FAST) Section 3007 8. Ratify Change Order No. 3 to Contract No. 16072 to John S. Meek Company, Inc. for Additional Railroad Bridge 217.32 Rehabilitation Services 9. Execute Amendment No. 12 to Fund a Transfer Agreement Between MTS and NCTD for Shared Costs of the RTMS for Support Services and Authorize the Executive Director to Enter into a Contract with Xerox, Inc. for the Purchase of RTMS Software and Implementation Services 10. Authorize the Executive Director to Negotiate and Execute Sole Source Contract No. 17028 to Cubic Transportation Systems, Inc., for Electronic Fare Collection Equipment Maintenance Services, Upon Review and Approval of General Counsel and Authorize the Purchase of Spare Parts and Consumables to Support Contract No. 17028 11. Authorize the Executive Director to Execute a Contract for Armored Car Cash Collection Services Page 2 of 4 ON THE MOTION OF BOARD MEMBER GALLO TO APPROVE CONSENT ITEMS 1 THROUGH 11, SECONDED BY BOARD MEMBER LOWERY. AYES: PACKARD, DRUKER, KRANZ, NICHOLS, GALLO, LOWERY, JONES, HORN, AGUILERA NOES: NONE ABSENT: NONE ABSTAIN: NONE MOTION CARRIES. CLOSED SESSION 12. Closed Session Pursuant to Government Code Section 54956.9(d)(1) – Conference with Legal Counsel – Existing Litigation – Noel Buckhanon v. NCTD, San Diego Superior Court Case No. 372016-00038114-CU-OE-NC The Board of Directors went into closed session at 2:08 p.m. The Board returned to open session at 2:52 p.m. with no reportable action. EXECUTIVE DIRECTOR’S REPORT Matthew O. Tucker, Executive Director, wished everyone Happy Holidays and stated that he looks forward to a busy year next year. He advised the Board that a revised FY 2017 Budget will be forthcoming for public hearing. BOARD MEMBER REPORTS, COMMENTS AND CORRESPONDENCE: Board Member Druker commented that it was good to be back on the Board. Board Member Lowery stated that it was nice to have the Board meeting at the San Marcos City Council Chambers. Board Member Kranz informed the Board that pursuant to AB 1234 he attended the LOSSAN Board Meeting and is happy to report that inner-city ridership is up. He thanked Board Chair Packard for his service the past two (2) years. Board Member Gallo welcomed Board Member Druker back and wished everyone a Merry Christmas. Board Member Aguilera also wished everyone a Merry Christmas. Vice-Chair Jones stated that she understood from a lobbyist that additional transportation funds were received. She thanked everyone for their continued support and wished all in attendance a Merry Christmas and Happy New Year. Board Member Packard stated that it was a pleasure to have served as Chair and thanked everyone for their support and for the good things that have come to fruition, as well as the development of a great team. He also wished everyone a Merry Christmas and Happy Holidays. He informed everyone that the next meeting will be held on January 19, 2017 at the Oceanside City Council Chambers. Page 3 of 4 Board Member Kranz asked when the NCTD Board Chambers were going to be done. Mr. Tucker, Executive Director, answered that possibly in 2018 and that the next bid package coming through will be for plumbing, followed by the 3rd floor renovation and then the 1st floor so that the meeting rooms can be relocated from the basement. REMAINING PUBLIC COMMUNICATIONS None. ADJOURNMENT The meeting adjourned at 2:58 p.m. Submitted by Anthony Flores, Clerk of the Board for North County Transit District. BOARD CHAIR North County Transit District CERTIFICATION I, Anthony Flores, duly appointed and qualified, Clerk of the Board of the North County Transit District, do hereby certify that the above is a true and correct copy of the Minutes of the Regular Meeting held on December 15, 2016 approved by the Board of Directors of the North County Transit District adopted at a legally convened meeting of the Board of Directors of the North County Transit District held on the 19th day of January, 2017. CLERK OF THE BOARD North County Transit District For individuals with sensory disabilities, this document is available in alternate formats. For information, please contact the Clerk of the Board at 760/966-6553. Persons with hearing impairment, please use the California Relay Service (CRS): 800/855-7100 TTY; 800/855-7100 voice; 800/855-7200 Spanish. CRS Customer Service: 877/546-7414 or 800-867-4323 TTY. Page 4 of 4 Agenda Item # 1 RECEIVE MONTHLY INTERGOVERNMENTAL AFFAIRS REPORT Time Sensitive Consent X STAFF RECOMMENDATION: Receive the Intergovernmental Affairs Report for the reporting period of December 2016 BACKGROUND INFORMATION: Staff provides the attached Federal and State legislative reports for the Board's review. Following are the key highlights from the December reports. Federal: Senate passed a Continuing Resolution (CR) appropriations bill to fund federal government programs at Fiscal Year ( FY) 2016 levels through April 28, 2017 by a vote of 63-36. The U.S. House of Representatives had passed the measure the previous day by a vote of 326-96. Due to the length of this extension, the Federal Transit Administration (FTA) is expected to make partial-year apportionments to its grantees. Unfortunately, since the CR is at FY 2016 funding levels, the increases authorized by the Fixing America's Surface Transportation (FAST) Act for FY 2017 will not yet be realized. It is also important to note that past practice of partial year apportionments suggests that FTA will not make partial year allocations for Capital Investment Grants. State: The Legislature returned on December 5 for the Members to be sworn into office. The Senate and Assembly made announcements regarding committee membership. The Governor has until January 10, 2017 to release his proposed budget for 2017-2018, which will kick off consideration by the Legislature. On December 5, two nearly identical bills were introduced containing the basic transportation funding proposal from the last Legislative Session. These bills will likely be part of the budget negotiations this spring. ATTACHMENT: FISCAL IMPACT: COMMITTEE REVIEW: STAFF CONTACT: 1A – State Legislative Report (Townsend) – December 2016 1B – 2016 Legislative Summary This staff report has no fiscal impact. None Bridget Hennessey, Intergovernmental Affairs Officer E-mail: bhennessey@nctd.org Phone: 760-966-6651 January 19, 2017 Board Meeting Staff Report No.: SR-17-01-001 ATTACHMENT 1A MEMO To: North County Transit District Board of Directors Matthew O. Tucker, Executive Director Bridget Hennessey, Intergovernmental Affairs Officer From: Townsend Public Affairs, Inc. Christopher Townsend, President Richard Harmon, Director Date: December 31, 2016 Subject: Monthly Report—December 2016 SUMMARY This memo is an overview of activities undertaken by Townsend Public Affairs (TPA) over the last month, working on behalf of the North County Transit District, including the following subjects: Legislative Activity and Updates o State Update Legislative Activity State Budget Outlook Legislative Committee Announcements Appointments and State Commission Changes Public Pension Changes o Tracked Legislation Administrative Action and Updates o Transportation Funding Update o Cap and Trade Update Upcoming Funding Opportunities State Capitol Office 925 L Street • Suite 1404 • Sacramento, CA 95814 • Phone (916) 447-4086 • Fax (916) 444-0383 Federal Office 600 Pennsylvania SE • Suite 207 • Washington, DC 20003 • Phone (202) 546-8696 • Fax (202) 546-4555 Southern California Office 1401 Dove Street • Suite 330 • Newport Beach, CA 92660 • Phone (949) 399-9050 • Fax (949) 476-8215 Central California Office 744 P Street • Suite 308 • Fresno, CA 93721 • Phone (949) 399-9050 • Fax (949) 476-8215 Northern California Office 300 Frank Ogawa Plaza • Suite 204 • Oakland, CA 94612 • Phone (510) 835-9050 • Fax (510) 835-9030 LEGISLATIVE ACTIVITY AND UPDATES State Update Legislative Activity The Legislature returned on December 5 and Members were sworn into office. Much of the focus of legislative leadership was pointed toward President-elect Trump and the potential implications of his policy agenda. Assembly Speaker Rendon, for example, said it was not time for healing, but a time "to fight." Democrats outlined proposals to push back on federal actions and be able to utilize their super-majority status to pass reactionary legislation (although the effectiveness of State legislation over federal action is questionable). Among the issues the Legislature and Governor will be considering this year as priorities are transportation, housing—availability and affordability—and homelessness, implementation of previous cannabis legislation, as well as the legalization of recreational cannabis use, future of cap and trade, and sentencing reform. State Budget Outlook The Governor has until January 10 to release his proposed budget for 2017–18, which will kick off consideration by the Legislature. Last month, the Legislative Analyst’s Office (LAO) released their budget outlook for the coming year, where they anticipated revenue increases of nearly 7 percent compared to the current year, which could result in as much as $11.5 billion in rainy day reserves. The estimates were based on actions by the Legislature consistent with previous years. This means if the Legislature acts to create or expand programs, or reduces the funding for reserves, the available discretionary revenue could be significantly lower. We continue to expect the Governor to urge caution with revenue estimates, noting the tax revenues in the current year are already down slightly, and raising concerns about a slowing of the economy in the next couple of years. The Chair of the Assembly Budget Committee indicated this month that Democrats are likely to propose around $ 1 billion in new spending on programs, including expansion of the earnedincome tax credit, mandatory full-day kindergarten and spending to reduce college costs. Legislative Committee Announcements As expected, the leaders of the Senate and Assembly made announcements this month regarding committee membership. The Senate released full membership lists, while the Assembly just announced the chairs of the committees. While there were no changes we would classify as surprises”—chairs of transportation and appropriations committees remain the same—there were a number of significant announcements: Senator Holly Mitchell (D-Los Angeles) as Chair of the Senate Committee on Budget and Fiscal Review Senator Mike McGuire (D-Healdsburg) as Chair of the Senate Committee on Governance and Finance covering local government issues 2 Senator Bob Hertzberg ( D-Los Angeles) as Chair of the Senate Committee on Natural Resources and Water Senator Nancy Skinner (D-Berkeley) as Chair of the Senate Committee on Public Safety Assembly Member Cecilia Aguiar-Curry (D-Winters) as Chair of the Assembly Committee on Local Government Assembly Member Sharon Quirk-Silva ( D-Buena Park) as Chair of the Assembly Committee on Jobs, Economic Development and the Economy Assembly Member Eduardo Garcia ( D-Coachella) as Chair of the Assembly Committee on Water, Parks and Wildlife Appointments and State Commission Changes Governor Brown appointed Congressman Xavier Becerra to fill the Attorney General vacancy left by the election of Kamala Harris to the U.S. Senate. Brown will be looking to Becerra to help lead the resistance to expected Trump Administration policies on climate change, immigration and the Affordable Care Act. Late in the month, Governor Brown appointed two new members to the California Public Utilities Commission (PUC). Martha Guzman-Aceves and Clifford Rechtschaffen are both advisors within the Governor’s Office—Martha handles mostly water, agricultural and natural resource issues, while Clifford works with climate and energy matters. The appointments replace Michael Florio and Catherine Sandoval who currently serve on the PUC. We have worked extensively with Martha on various issues and projects, so it will be tough to see her leave the Governor’s Office, but at least it will provide an opportunity to have another familiar face on the PUC. Mr. Rechtschaffen faces a more challenging path through confirmation, as there are groups who feel he was too closely-aligned with the oil industry during his time as acting director of the Department of Conservation. On December 30, Wendy Mitchell announced her resignation from the California Coastal Commission. We worked with Wendy during her time as staff in Legislature. She had served on the Coastal Commission for last six years after initially being appointed by then-Governor Schwarzenegger. Public Pension Changes As you are aware, the California Public Employee Retirement System ( CalPERS) Board of Administration approved a change to the discount rate for public pensions. The Board approved reducing the discount rate from the current 7.5 percent to 7 percent over the next three years. The result of this change is that employers and employees will need to contribute more. Most stakeholder groups—including the League of California Cities and California State Association of Counties—are supportive of the decision to lower the rate, as is Governor Brown. The expectation is that by increasing the contributions, public pensions will have a much more sustainable funding outlook. Despite the 3-year “phase-in” period—intended to allow time to budget appropriate contribution increases into local government budgets—the change will be challenging for many jurisdictions already struggling with the high cost of pension obligations. 3 ADMINISTRATIVE ACTION AND UPDATES Transportation Funding Update Two nearly identical bills were introduced on January 5—Assembly Bill 1 and Senate Bill 1— containing the basic transportation funding proposal from the last Legislative Session. There is still no indication about timing for consideration of these bills by the Legislature, other than as part of the budget process this spring. We are also waiting to see what the Governor includes in his budget proposal regarding transportation. All revenue and expenditure estimates are based of full implementation of these funding/reform packages which occurs in Year 5. If adopted in 2017, full implementation would occur in Fiscal Year 2021-22. New Revenues Maintenance & Rehabilitation Investments—$3.12 billion annually Gas tax increase of 12-cents, which generates $1.8 billion annually o AB 1 levies the entire increase in year one o SB 1 levies the increase in increments over three years (6-cents in year one, 9cents in year two, and 12-cents in year three) o Gas tax revenues deposited into the Road Maintenance and Rehabilitation Account (RMRA) SB 1 would capture off-highway vehicle (OHV) increment from new gas tax for RMRA, whereas AB 1 maintains current practice of sending OHV related share to OHV accounts o Indexed for inflation every three years Vehicle registration fee (VRF) of $38, which generates $1.3 billion annually o Deposited into the RMRA o Indexed for inflation every three years Zero emission vehicle registration fee (ZVRF) of $100 (SB 1) or $165 (AB 1), which would generate approximately $20 million annually o Deposited into the RMRA o Indexed for inflation every three years Freight Investments—$600 million annually 20-cent diesel excise tax, which generates $600 million annually o Deposited into the Trade Corridors Improvement Fund (TCIF) o Indexed for inflation every three years Transit Investments—$563 million annually Up to a 4% increase in the sales tax on diesel, which generates approximately $263 million annually o Deposited into the State Transit Assistance Account (STA) o Allocated via the Public Transportation Account (PTA) formula o AB 1 increases the rate by 3.5% all for the STA/PTA allocation o SB 1 increases the rate by 4%, 3.5% which benefits the STA/PTA formula and 0.5% benefits the Transit and Intercity Rail Corridor Program (TIRCP) 4 Increase existing cap and trade expenditures, which generates approximately $300 million annually o From 10% to 20% of total cap and trade auction proceeds for the TIRCP o From 5% to 10% of total cap and trade auction proceeds for the Low Carbon Transit Operations Program (LCTOP) Total new revenue generated for all investment categories: $4.28 billion Restored/Returned Revenues Maintenance & Rehabilitation Investments—$1.81 billion annually 500 million in truck weight fees o Directed to the Highway User Tax Account (HUTA) o Allocated via the 44 STIP/44 LSR/12 SHOPP split o AB 1 would phase in a specific dollar amount to be returned to transportation projects whereas SB 1 would phase in a certain percentage of weight fee revenue. AB 1 would cap the weight fee transfer to the General Fund to $500 million in FY 2021-22 and SB 1 would cap the transfer to 50% of total weight fee revenue collected in FY 2021-22. Depending on how much weight fee revenue is collected in any given year one approach could return more back to transportation projects than another but it’s difficult to predict. Eliminate the annual BOE adjustment of the price-based excise tax, reset the rate to 17.3cents, which would generate $1.125 billion over FY 2016-17 anticipated revenues o Directed to the HUTA o Allocated via the 44/44/12 split Return $125 million in price-based revenues related to the sale of fuel for non-highway purposes (Off-Highway Vehicles) o Directed to the HUTA o Allocated via the 44/44/12 split Return $60 million in miscellaneous transportation revenues o Directed to the RMRA o Allocated via the 50 state/50 local split after off-the top set-aside Total restored/returned revenue generated for all investment categories: $1.81 billion One-Time Revenues Maintenance & Rehabilitation Investments 703 million in transportation loans o Split 50/50 between the state/locals Total one-time revenue generated for all investment categories: $703 million Grand total on-going revenue for all investment categories: $6.09 billion Expenditures by Account for Road Purposes Road Maintenance and Rehabilitation Account (RMRA) Receives $3.18 billion from new and returned/restored revenue annually: o $ 3.12 billion from new revenues (gas tax, VRF, ZVRF) 5 o $ 60 million from returned revenues (miscellaneous revenues) Take-downs before formula allocation: o $ 200 million annually for the State Local Partnership Program (SLPP) o $ 80 million annually for the Active Transportation Program (ATP) o $ 30 million annually for 4-years to establish the Advanced Mitigation Program o $ 2-5 million annually for the CSU/UC transportation centers (SB 1 would allocated 2 million for the UC system only whereas AB 1 would allocated $2 million for the UC system and $3 million for the CSU system) Remainder for formula allocation: o $ 2.9 billion o Remainder split 50 state/50 local 1.45 for the SHOPP 1.45 billion for LSR Total generated for RMRA: $3.18 billion Highway User Tax Account (HUTA) Receives $1.75 billion from returned/restores revenues annually: o $ 1.125 billion from resetting the price-based excise tax rate o $ 500 million in truck weight fees o $ 125 million from OHV related price-based excise tax revenue Formula allocations: o 44% STIP/44% LSR/12% SHOPP 770 million for the STIP 770 million for LSR 21 million for the SHOPP Total generated for HUTA: $1.75 billion Grand total ongoing revenue for road purposes categories: $4.93 billion Expenditures by System for Road Purposes Local Streets and Roads 2.22 billion annually o $ 1.45 billion annually from new/returned revenue from the RMRA o $ 770 million annually from restores/returned revenue from the HUTA Potential LSR benefits from $200 million SLPP and $80 million ATP One time revenue of $352 million from transportation loan repayment State Highways Operations and Protection Program 1.47 billion annually o $ 1.45 billion annually from new/returned revenue from the RMRA o $ 21 million annually from restores/returned revenue from the HUTA Potential State Highways benefits from $200 million SLPP and $80 million ATP One time revenue of $352 million from transportation loan repayment State Transportation Improvement Program 770 million annually Potential State Highways benefits from $200 million SLPP and $80 million ATP 6 Cap and Trade Update Since May of this year, there has been a significant amount of uncertainty regarding the State’s auction sales of carbon credits, known as cap and trade. During previous auctions, the State would normally receive more than $500 million in revenues for the Greenhouse Gas Reduction Fund, which funds various programs. At both the May and August auctions, however, the State received a combined $18 million in revenues. At the November auction, sales appear to have rebounded, with the State receiving approximately $360 million in revenues. As we’ve noted in previous reports, the program’s uncertainty stems from a couple of different issues. One issue has been economic, with some areas of the industrial sector lagging other sectors, resulting in a smaller demand for the credits. Larger concerns have focused on the legal status of the program. The California Chamber of Commerce has a pending lawsuit against the program, which is expected to be resolved in the first half of 2017. Also, while the Governor and Legislature extended the State’s greenhouse gas reduction targets, there has been no clear legislative approval of the cap and trade program, which is set to expire in 2020. In many of the discussions around a transportation funding proposal, transit advocates have been told there could be additional cap and trade funds made available for bus and rail modes. Without substantial auction proceeds, however, there was no viability for this strategy. If revenues are indeed increasing to historical levels, it could increase the possibility of a transportation proposal moving forward. UPCOMING FUNDING OPPORTUNITIES Included below is a list of some of the upcoming grant programs, descriptions and due dates: Urban Greening Grant Program (March)—this program will fund projects that transform the built environment into places that are more sustainable, enjoyable, and effective in creating healthy and vibrant communities by establishing and enhancing parks and open space, using natural solutions to improving air and water quality and reducing energy consumption, and creating more walkable and bike-able trails. All projects are required to show a net greenhouse gas (GHG) benefit and provide multiple other benefits. In order to quantify GHG emission reductions, project must include at least one of the following project activities: o Sequester and store carbon by planting trees o Reduce building energy use from strategically planting trees to shade buildings o Reduce commute, non-recreational and recreational vehicle miles travelled by constructing bicycle paths, bicycle lanes, or pedestrian facilities. 7 ATTACHMENT 1B Date: January 19, 2017 To: NCTD Board of Directors From: Bridget Hennessey, Intergovernmental Affairs Officer CC: Matthew O. Tucker, Executive Director Re: 2016 Legislation Summary Below is a summary of the legislative and regulatory action that was taken during 2016 that will impact North County Transit District. FEDERAL Buy America On December 12, 2017, the Federal Transit Administration granted a Buy America non-availability waiver to NCTD for the procurement of replacement parts for SPRINTER Diesel Multiple Unit ( DMU) rail vehicles. The approval of this waiver is significant as it will allow NCTD to use leverage federal funds for the purchase of parts and components for the SPRINTER. Funding Congress passed a Continuing Resolution ( CR) appropriations bill to fund federal government programs at Fiscal Year (FY) 2016 levels through April 28, 2017. Due to the length of this extension, the Federal Transit Administration (FTA) is expected to make partial-year apportionments to its grantees. Unfortunately, since the CR is at FY 2016 funding levels, the increases authorized by the Fixing America's Surface Transportation (FAST) Act for FY 2017 will not yet be realized. It is also important to note that past practice of partial year apportionments suggests that FTA will not make partial year allocations for Capital Investment Grants. STATE North County Transit District Assembly Bill 1757 (Waldron)—this bill is the District’s proposal for statutory changes to ensure parity with neighboring agencies. Chapter 325, Statutes of 2016 California Global Warming Solutions Act of 2006: Emissions Limits Senate Bill 32 ( Pavely) – This bill sets an enforceable greenhouse gas ( GHG) emissions target of 40 percent below 1990 levels by 2030 that would create certainty for markets and consumers. This bill further strengthens the legal basis for the California Air Resources Board to reduce GHG emissions beyond 2020, and support regulatory mechanisms like Cap and Trade. Chapter 249, Statutes 2016 Re: 2016 Legislative Summary January 19, 2017 Page 2 of 2 Low Carbon Transit Operations Program Senate Bill 824 (Beall) - This bill authorized a recipient public transit agency that does not submit a project for funding under the LCTOP in a particular fiscal year to retain its funding share for expenditure in a subsequent fiscal year. This bill allows a recipient public transit agency to loan or transfer its funding share in a particular fiscal year to another recipient public transit agency, or to apply to the department to reassign, to other eligible expenditures under the program, any savings of surplus moneys from an approved expenditure that is no longer a priority, as specified. This bill allows a recipient public transit agency to apply to the department for a letter of no prejudice for a capital project or component of a capital project for which the department has authorized a disbursement of funds, and if granted, allows the recipient public transit agency to expend its own moneys and to be eligible for future reimbursement from the program under specified conditions. Chapter 479, Statutes 2016 State Transit Assistance Program Allocation Fix Senate Bill 838 (Budget and Fiscal Review) – This bill makes various policy changes related to transportation. Of most importance is the bill’s provision that directs the State Controller’s Office to temporarily return to the long-understood methodology for allocating any unallocated funding from the State Transit Assistance program for Fiscal Year ( FY) 2015-16, for all funds to be allocated in FY2016-17 and possibly through FY2017-18 Chapter 339, Statutes of 2016 Crimes: Public Transportation: Minors Senate Bill 882 (Hertzberg) - This bill prohibits public transit agencies from charging minors with an infraction or misdemeanor for various acts related to fare evasion. Chapter 167, Statutes of 2016 Mass Transit Guideways Senate Bill 998 (Wieckowski) – This bill bolsters the effectiveness of bus rapid transit projects statewide by prohibiting motorists from operating, stopping, parking, or leaving idle, a vehicle in a dedicated bus-only lane. Chapter 716, Statutes of 2016 Local Agency Meetings: Agenda: Online Posting Assembly Bill 2257 (Maienschein) – This bill requires online posting of an agenda for a meeting occurring on and after January 1, 2019, of a legislative body of a city, county, city and county, special district, school district, or political subdivision established by the state that has an internet Website to be posted on the local agency’s primary website homepage accessible through prominent, direct link. Chapter 265, Statutes of 2016 Agenda Item # 2 RECEIVE QUARTERLY REPORT OF CONTRACT ACTIONS ISSUED UNDER EXECUTIVE DIRECTOR AUTHORITY Time Sensitive Consent X STAFF RECOMMENDATION: Receive the report of Contracts and/or Contract Change Orders for the reporting period of October 1, 2016 to December 31, 2016, issued pursuant to the delegation of authority provided by the Board of Directors to the Executive Director under Board Policy No. 19. BACKGROUND INFORMATION: Pursuant to the North County Transit District (NCTD) Board of Directors (Board) Policy No. 19, Delegation of Authority to the Executive Director, the Executive Director or his designee may: Amend a contract of any value consistent with the Board-adopted budget if the amendment does-not-exceed $ 50,000, in singular or cumulative value, and if the amendment does not involve a major change in scope, unless the amendment costs are reimbursable by a third party and an agreement for reimbursement is in place, in which event, the amendment may be of any value; or Award a contract if the initial contract value does-not-exceed $ 100,000 and is consistent with the Board-adopted budget. The Executive Director must: Report contract actions and amendments made in accordance with this authority to the Board of Directors on a quarterly basis. The Executive Director has delegated authority for execution of contracts, following review and approval by General Counsel, to the Chief Procurement and Contract Administration Officer. Staff recommends the Board receive the report of Contracts and/or Contract Change Orders issued for the reporting period of October 1, 2016 to December 31, 2016 pursuant to the delegation of authority provided by the Board to the Executive Director. ATTACHMENT: FISCAL IMPACT: COMMITTEE REVIEW: STAFF CONTACT: 2A – Original Commitments $ 100,000 in Value or Less and Change Order Commitments $50,000 in Value or Less (October 1, 2016 to December 31, 2016) This staff report has no fiscal impact. None Samuel Elmer, Chief Procurement and Contract Administration Officer E-mail: selmer@nctd.org Phone: 760-967-2862 January 19, 2017 Board Meeting Staff Report No.: SR-17-01-002 Original Commitments 100K in Value or Less and ATTACHMENT 2A Change Order Commitments 50K in Value or Less October 01, 2016 to December 31, 2016 Original Change Order Number Order Order 31080 X Trovillion Inveiss & Demakis A Legal Fees 11,760.00$ N 31081 X Floyd, Skeren & Kelly, LLP Legal Fees 11,760.00$ N 32897 X DLT Solutions, LLC. ( Purch) Solarwinds Licenses Netflow 20,587.53$ Y 32628 X Herc Rentals Inc. Dump Truck Rental 6MO 29,357.46$ N 510.512105 32837 X US Bank/ IMPAC Govt. Services Micro Credit Card Purchase 4,850.31$ N 339.504211 32838 X US Bank/ IMPAC Govt. Services Micro Credit Card Purchase 4,439.10$ N 270.509161 32847 X Dimensional Silk Screen, Inc. COASTER Schedule signs 312.00$ N 365.504214 32866 X Magnetic Ticket and Label TVM Tickets & Shipping 7,557.36$ N 32920 X Camira Group Inc. Sprinter Seat Material 83,684.88$ Y 32839 X California Operation Lifesaver FY17 CAOL Annual Dues 1,140.00$ N 261.509106 32845 X Pure Flow Water Co FY17 Water delivery 311 Tremon 480.00$ N 339.504211 32843 X Thompson Coburn LLP Rail Contract Review 8,610.00$ N 160.503114.002 32856 X GSG Printing, Inc. ADA Lift Tickets October 2016 2,026.00$ N 32900 X Datel Systems, Inc. Barracuda SPAM Filter 7,830.88$ Y 32844 X Statewide Safety & Signs Inc ROW/ Station Signs 122.00$ Y 32848 X Schaltbau North America, Inc Replace Footswitch 11,648.00$ Y 32850 X San Diego Union Tribune Bid Docunments 1,476.72$ N 32858 X Zuza Holiday Express Tickets 292.00$ N 32880 X Computerland SiliconValley Mobile Phones & Freight 21,609.37$ N 32862 X Dimensional Silk Screen, Inc. Ordinance #3 Sign Stickers 500.00$ N 16011 X BRG Consulting, Inc. TOA 02 Esco Line Fiber - Enviro 70,836.66$ Y 512557.742000.12620176 514017.741000.122403 16072 X Vendor Name Service/ Product Description Extended Amount Fed Funds Account Number 350.503111.002 350.503111.002 117017.722000.124220 300.504256 615002.732000.12124001 300.504252 117020.722000.124220 510.504315 615240.722000.121240 330.509161 270.503111 416065.722000.12422002 220.504311.681 John S. Meek Company, Inc. CO 01 Schedule Acc 7,337.88$ Y 32853 X Tis Speedy FY17 Rider Alert-Sched Change 1,098.00$ N 365.504214.710 32854 X Datel Systems, Inc. Smartnet for Firewall 50.77$ N 320.503317 32855 X Day Wireless Systems Radio Rental 1 Month 2,835.01$ N 250.512107 32863 X Dimensional Silk Screen, Inc. Holiday Express Banner & Stand 150.00$ N 270.503111 32867 X Global Power Group, Inc. SOF Emergency Battery 1,726.81$ Y 32851 X Locomotive Climate Solutions, HVAC 3/2 Valves 70,190.80$ Y 616001.741000.121420 32857 SECC Corporation Redundant Fiber Constr CO1 16053 X X A. J. Fistes Corporation CBV Wood Construction 32870 X Passenger Transport - APTA FY17 Annual Program Fee 32899 X Vector Resources, Inc. (Purch) OnSSI Software & License Renew 32915 X A& T Networks URL Filtering License-3 year 32199 X Konica Minolta Business Soluti Konica Printers Lease FY16 32865 X SECC Corporation Redundant Fiber Con - Flagging 32869 X InContact, Inc Svc 866/ 502-6673 24494100 32864 X Team Wenger, Inc. Emergency Web Repair 32901 X CDW Government, Inc. (Purch) 15013 X 32871 X 32881 220.503316.201 1,538.51$ Y 115115.741000.114220 30,000.00$ Y 213021.741000.119402 7,000.00$ N 261.509101 13,107.68$ Y 320.503311.042 6,481.14$ N 320.503311 50,046.64$ N 320.512101 1,538.51$ N 255.503115.002 120.00$ N 320.505101 3,000.00$ N HP Thin Client Laptop Monitor 11,229.20$ Y Datel Systems, Inc. TOA 20 Camera Cleaning FY17 20,000.00$ Y San Diego Union Tribune Bid Documents 4,701.30$ N X My Electrician Inc Electrical Investigation - SB 1,360.00$ N 514108.741000.129403 32872 X US Bank/ IMPAC Govt. Services Micro Credit Card Purchase 2,301.18$ Y 117018.722000.124220 32872 X US Bank/ IMPAC Govt. Services Micro Credit Card Purchase 6,310.79$ N 1 of 2 270.503111 416123.722000.124220 320.503311.042 330.509161 320.503316 Sole Source Original Commitments 100K in Value or Less and ATTACHMENT 2A Change Order Commitments 50K in Value or Less October 01, 2016 to December 31, 2016 Original Change Order Number Order Order 32887 X 32877 X 16072 X Vendor Name Service/ Product Description Extended Amount Fed Funds Account Number Project Made Easy, Inc. Project Online Licenses 15,827.67$ N 320.503311 Epic Land Solutions, Inc. TOA 08 Solana Beach TOD 97,218.01$ N John S. Meek Company, Inc. CO 02 Bridge 217.32 Rehab 30,000.00$ Y 514017.741000.122403 3,160.99$ Y 416123.722000.124220 870.00$ Y 510.504315 260.503114 32905 X CDW Government, Inc. (Purch) iMac and USB Super Drive 32888 X Dimensional Silk Screen, Inc. Poinsettia Station Signs 32891 X San Diego, County of (Environ. DEH Unified Facility Permit 1,959.00$ N 220.509176 32893 X GSG Printing, Inc. Sprinter/ Breeze Scratch Ticket 5,666.00$ N 300.504251 32884 X San Diego Union Tribune Bid Documents 1,709.20$ N 330.509161 31113 X Law Offices of Mark H. Barber, Legal Fees 15,880.00$ N 357.503111.001 31276 X Jackson DeMarco Tidus & Pecken Legal Fees 10,000.00$ N 357.503111.001 32889 X Tis Speedy FTA Triennial Workbooks (20) 495.00$ N 339.504211 32890 X Baker & Miller PLLC Legal Fees 10,000.00$ N 357.503111.001 16035 X Anderson & Brabant, Inc. TOA 05 NRG Electic Trans. 4,500.00$ N 520.503115 32898 X Vector Resources, Inc. (Purch) OnSSI Base License StayCurrent 277.34$ Y 320.503311.042 32892 X Day Wireless Systems Radio Rental 2,835.01$ N 250.512107 32896 X V and V Manufacturing Inc. Badges Repair & Freight 118.05$ N John S. Meek Company, Inc. CO 03 Bridge 217.32 Rehab 20,395.77$ Y 514017.741000.122403 81,440.40$ N 511951.742000.122103 444.00$ N 44,210.72$ Y 16072 X 32874 X Bombardier Mass Transit Corp. ROW Svs 32903 X Technology Unlimited, Inc. (Pu AP Checks for Printing 17026 X Herzog Technologies, Inc. Crossing Controller PH2 32912 X Dimensional Silk Screen, Inc. COASTER Platform Schedule Sign 32923 X Department of Industrial Relat NCTD Self Insurance Bond 17027 X SCINTECH Associates, Inc. 32909 X 32914 X 32911 32913 230.504211 290.504211 512901.722000.126201 40.00$ N 5,924.54$ N Bus Procurement Radio Installa 73,750.00$ Y US Bank/ IMPAC Govt. Services Micro Credit Card Purchase 12,131.27$ N Epic Land Solutions, Inc. TOA09 Real Estate Module Ab 99,309.00$ Y 517600.742000.124220 X Datel Systems, Inc. HP Server BL460C Gen 9 22,324.26$ Y 416035.722000.12422002 X CBI Mobile LLC Guest Assist Paging 19,755.84$ N 160.503114.002 32924 X Price Forbes & Partners Ltd General Liability Ins. Premium 36,000.00$ N 357.506131 32921 X Day Wireless Systems Radio/ Battery VHF 128 ch 340.21$ N 250.504215 32922 X US Healthworks Med Group FY 17 Flu Vaccinations 1,000.00$ N 350.503131 32929 X Price Forbes & Partners Ltd General Liability Ins. Premium 72,000.00$ N 357.506131 32930 X Otis Elevator Company Emergency Elevator Repair -SB 2,500.00$ N 220.503314.681 32931 X Otis Elevator Company Elevator Troubleshooting - GAO 752.22$ N 220.503311.681 32932 X Patriot Environmental Svc, Inc Elevator Pit Water Removal -SB 5,021.00$ N 220.503314.681 Grand Total 2 of 2 1,240,859.99$ 365.504214.740 357.506171 116005.722000.11120103 270.504211 Sole Source Agenda Item # 3 ADOPT RESOLUTION NO. 17-01 APPROVING REVISED BOARD POLICY NO. 24 – EMPLOYEE DRUG AND ALCOHOL POLICY Time Sensitive Consent X STAFF RECOMMENDATION: Adopt Resolution No. 17-01 approving revised Board Policy No. 24 to ensure continued compliance with Department of Transportation and Federal Transit Administration requirements. BACKGROUND INFORMATION: In accordance with U.S. Department of Transportation (DOT) and Federal Transit Administration (FTA) Drug and Alcohol program requirements, the North County Transit District (NCTD, District) and its applicable safety-sensitive subcontractors must maintain compliance with the following regulations: 49 CFR Part 32 “ Government-wide Requirements for a Drug-Free Workplace (Financial Assistance)” 41 USC Sections 701 et seq., as amended, Drug-Free Workplace Act DFWA) of 1988 49 CFR Part 655 “Prevention of Alcohol Misuse and Prohibited Drug Use in Transit Operations” 49 CFR Part 40 “ Procedures for Transportation Workplace Drug and Alcohol Testing Programs” In addition, to further support NCTD’s mission and commitment to safety, the District has previously established a pool of positions that are designated as safety-sensitive” under internal (non-DOT) authority, and participate in a random screening program. Due to transitions in the District’s position classification schedule, updates to Drug and Alcohol program listing of positions included in the DOT and non-DOT safetysensitive pools are necessary. In addition, NCTD is modifying the language regarding prescription drug utilization and Worker’s Compensation post-accident testing to provide policy clarification in those areas. As a result of the foregoing updates, Board Policy No. 24 must be revised. Staff recommends that the Board adopt Resolution No. 17-01 approving revised Board Policy No. 24 to ensure continued compliance with Department of Transportation and Federal Transit Administration requirements. ATTACHMENT: 3A – Draft Resolution No. 17-01 Revisions to Board Policy No. 24 – Employee Drug and Alcohol Policy January 19, 2017 Board Meeting Staff Report No.: SR-17-01-003 FISCAL IMPACT: COMMITTEE REVIEW: STAFF CONTACT: This staff report has no fiscal impact. None Karen L. Tucholski, Chief Administrative Officer E-mail: ktucholski@nctd.org Phone: 760-966-6574 January 19, 2017 Board Meeting Staff Report No.: SR-17-01-003 ATTACHMENT 3A RESOLUTION NO. 17-01 RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORTH COUNTY TRANSIT DISTRICT REVISING BOARD POLICY NO. 24 – DRUG AND ALCOHOL POLICY WHEREAS, the Board of Directors ("Board") has adopted Board Policies 1 through 33 to guide the daily operations of the North County Transit District ("NCTD"); and WHEREAS, Board Policy No. 1 states that at least annually, the Board will review such Board Policies as previously adopted; and WHEREAS, the Board has identified the need to revise Board Policy No. 24, Drug and Alcohol Policy as set forth in full in Exhibit A to this Resolution. NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the North County Transit District hereby approves revised Board Policy No. 24, Drug and Alcohol Policy set forth in full in Exhibit A to this Resolution. BE IT FURTHER RESOLVED that insofar as the provisions of any Ordinance, Resolution, document or previous action of the Board and/or the Executive Director, prior to the date of this Resolution, are inconsistent with the provisions of this Resolution or any policy adopted by this Resolution, this Resolution and the Board Policies adopted herein shall control. PASSED, APPROVED AND ADOPTED at the regular meeting of the Board of Directors of the North County Transit District this 19th day of January, 2017. CHAIR North County Transit District CERTIFICATION I, Anthony Flores, duly appointed and qualified, Clerk of the Board of the North County Transit District, do hereby certify that the above is a true and correct copy of a resolution passed and approved by the Board of Directors of the North County Transit District adopted at a legally convened meeting of the Board of Directors of the North County Transit District held on the 19th day of January, 2017. CLERK OF THE BOARD North County Transit District RESOLUTION NO. 17-01 RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORTH COUNTY TRANSIT DISTRICT REVISING BOARD POLICY NO. 24 – DRUG AND ALCOHOL POLICY Exhibit A Legal Blacklines of Board Policy No. 24, Drug and Alcohol Policy Page 2 of 2 ATTACHMENT 3B Board Policy No. 24 Employee Drug and Alcohol Policy Summary In light of the fact that this policy applies to all employees of the North County Transit District NCTD, District), policies that are specific to NCTD employees are identified in italic typeface; policies that are specific to U.S. Department of Transportation (DOT) regulations are identified in regular typeface. This policy supersedes the Drug & Alcohol Policy of November 19, 2015October 20, 2016, and all other prior-adopted Drug & Alcohol policies. Purposes A. To maintain a safe and efficient public transportation system; B. To maintain a safe, healthy working environment for all employees; C. To reduce the incidence of accidental injury to person or property; D. To reduce absenteeism, tardiness and indifferent job performance; E. To maintain a work environment free of alcohol and drug related performance problems, accidents and injuries; and F. To comply with the Federal Transit Administration ( FTA) regulations on prevention of prohibited drug use and alcohol misuse in transit operations, 49 C.F.R. Parts 655 and 40. Application of Policy This policy applies to applicants and employees of the North County Transit District (NCTD) and to contractor personnel/consultants who are working in NCTD offices on a regular basis, and are not otherwise covered and are required to be under a drug and alcohol program per regulatory requirements. The word “ employee” as used in this policy includes all such aforementioned individuals. This policy also applies to employees of the North County Transit District who work in the titles listed in Appendix A and/or perform safety-sensitive functions as defined below. Some of the drug and alcohol testing and procedures required in this policy are mandated by FTA regulations preventing prohibited drug use and alcohol misuse in transit operations, 49 C.F.R. Parts 655 and 40. The drug testing and alcohol testing mandated by FTA is applicable to “safetysensitive employees” of the District, which includes those who: A. Operate revenue service vehicles, including when such vehicles are not in revenue service; B. Operate a non-revenue service vehicle, when such vehicle is required to be operated by a holder of a Commercial Driver’s License; C. Control dispatch or movement of a revenue service vehicle; D. Maintain a revenue service vehicle or equipment used in revenue service; Page 1 of 21 Board Policy No. 24 – Employee Drug and Alcohol Policy (continued) E. Security personnel who carry firearms; F. Supervisors of the aforementioned employees since these supervisors may perform safety-sensitive duties. The District has reviewed the actual duties performed by employees and determined that the positions listed in Appendix A may require the performance of safety-sensitive duties: The drug and alcohol testing required by this policy for employees who are not safety-sensitive employees as defined above is required by the District, not the FTA. This policy specifies which testing is mandated by FTA and which is required by the District which will be identified by italics. The District has determined under its own authority that the positions listed in Appendix A require the performance of safety-sensitive duties relative to District requirements (not FTA), and as such shall be subject to drug and alcohol testing under this policy. Such testing shall follow the requirements and guidelines mandated by the FTA, but shall not be part of, nor comingled with, the testing performed under FTA guidelines. All information regarding the drug and alcohol testing under District authority shall be maintained separate from that required by the FTA. Non-DOT testing forms shall be utilized for testing done under District authority. The District does not employ volunteers to conduct safety-sensitive duties. Upon implementation, this policy supersedes all previously issued Drug and Alcohol Policies by NCTD. Illegal Drugs, Legal Drugs, and Alcohol A. Illegal Drugs The unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited while on District business or on District premises, property or vehicles. Further, no employee shall bring drug paraphernalia onto District premises or property or into District vehicles. All employees must abide by this policy statement as a condition of employment. Violation of these rules will result in disciplinary action, up to and including termination; termination is likely for any violation, even a first offense. Illegal drug means any drug (a) which is not legally obtainable or (b) which is legally obtainable but has not been legally obtained. The term includes marijuana, cocaine, opiates ( codeine, morphine, heroin), phencyclidine (PCP), and amphetamines (amphetamine, methamphetamine, MDMA, MDA, MDEA [ ecstasy]). Regardless of any State laws protecting the medicinal or recreational use of marijuana, federal regulations forbid its use by safety-sensitive employees, and District policy forbids its use for all other employees. Employees are prohibited from using the five listed drugs at all times, and covered employee may be tested for these drugs any time while on duty as discussed below. The term “ illegal drugs” also includes prescribed drugs not legally obtained, or prescribed drugs not being used for prescribed purposes. Consistent with NCTD’s policy, NCTD is responsible to notify the appropriate Federal agencies if an employee in a safety-sensitive position who is engaged in the performance of an award informed NCTD about a conviction, or if NCTD otherwise learns of this conviction. “Award” means Page 2 of 21 Board Policy No. 24 – Employee Drug and Alcohol Policy (continued) an award of financial assistance by the DOT or other Federal agency directly to a recipient. NCTD must provide to the Federal agencies in writing the employee’s position title and employee identification number(s) of each affected award. This information must be sent within 10 ( ten) calendar days after NCTD has learned of a conviction. NCTD is to send to every Federal agency on whose award the convicted employee was working. It must be sent to every awarding official or his or her official designee, unless the Federal agency has specified a central point for the receipt of the notice. Within 30 (thirty) calendar days of learning about the employee’s conviction NCTD must take appropriate personnel action against the employee, up to and including termination. B. Legal Drugs The use of legal drugs at a level, or in a manner, combination or quantity which impedes an employee’s ability to perform his job is prohibited and will lead to disciplinary action, up to and including termination. District policy (not FTA regulations) also deems failure to report the use of legal drugs per the procedure described below as a violation of this policy that will result in discipline up to and including termination of employment. It is the employee’s responsibility to ensure that any legal drug(s) they are taking allow them to safely perform their duties. Employees have an affirmative obligation to discuss any potential impact a prescription drug may have upon their ability to perform their job duties with their physician. If the physician feels a potential impact may exist, the employee must report any such prescribed drug or medication, using the “ Prescription Drug Notification Form”, to the Human Resources Manager, so that a determination can be made by the District’s physicians as to the ability of the employee to perform his/her particular job safely while using that drug or combination of drugs. If, after consulting with its physicians, the District has determined that the employee does not pose a threat to his or her own safety, public safety, or the safety of coworkers, and that the employee’s job performance will not be significantly affected by the legal drug, the employee may continue to work while taking that particular legal drug. Any employee using a prescription drug must provide the prescription and the medication itself ( if requested) to the designated District medical facility as soon as possible (but in any case within 24 hours) after notification by District management or its physicians. C. Alcohol No employee shall consume alcoholic beverages in District vehicles, within four hours before performing safety-sensitive functions, or while in uniform. An employee shall not allow an open container of alcohol or an illegal drug to be placed or carried in an NCTD vehicle or in any vehicle over which an employee has control while conducting NCTD business. NCTD prohibits the consumption of alcohol by employees while conducting NCTD business, whether or not such consumption will cause the employee to be considered under the influence of alcohol. Violation of these rules will result in disciplinary action, up to and including termination, even for a first offense. No employee who is on-call and therefore subject to being called in to work shall consume alcohol within four hours of or during those on- call hours. In the event such an employee is called and must report for duty, the employee has the opportunity to acknowledge that he/she has used alcohol and therefore is not able to perform his/her safety-sensitive function. In such a case, that employee shall not be required to perform work, but may be disciplined for the use of alcohol during on- call hours based on District policy (not FTA regulations). FTA regulations mandate that employees with a breath-alcohol concentration between 0.02 percent and 0.039 percent not be Page 3 of 21 Board Policy No. 24 – Employee Drug and Alcohol Policy (continued) allowed to perform any safety-sensitive function until the start of the employee’s next regularly scheduled duty period that is at least eight hours following the administration of the alcohol test. FTA regulations also mandate that employees with a breath-alcohol concentration of 0.04 or greater not be allowed to perform any safety-sensitive function, and follow additional steps before a return to duty as described below for a positive test. The District’s policy is that any employee who is tested for alcohol and has a breath-alcohol content of 0.02 percent or greater will be terminated, even for a first offense. 1. Prohibition AgainstaAgainst Employees Having Illegal Drugs or Alcohol in their Bodies DuringdDuring Working Time All employees must report for work with no illegal drugs or their metabolites or alcohol in their bodies. Employees must not have illegal drugs or their metabolites or alcohol in their bodies at any time while on the job and employees may be tested for the presence of drugs and/or alcohol at any time while on duty or at a District facility, under the circumstances described below. Alcohol tests on safety-sensitive employees who are performing, are about to perform or who have just completed performing safety-sensitive duties are FTA- mandated tests when they are based on reasonable suspicion, post-accident or random (as described below); all other alcohol tests are required by NCTD policy. Drug tests on safety-sensitive employees are FTA-mandated tests when they are pre-employment ( including assuming safety-sensitive duties), based on reasonable suspicion, post-accident, follow-up or random ( as described below); all other drug tests are required by NCTD policy. All drug and alcohol tests on non-safety-sensitive employees are required by NCTD policy, not FTA regulations. FTA regulations prohibit safety-sensitive employees from using alcohol within four hours prior to their shift or while on call, and from having a breath-alcohol concentration of 0.02 or higher while performing safety-sensitive duties. District policy likewise prohibits employees from having a breath-alcohol concentration while on duty of 0.02 percent or higher. Any employee with a breath-alcohol concentration of 0.02 percent or higher will be terminated. Compliance with these rules is considered an essential job qualification for all employees. Termination of employment will occur for a violation of any of these rules, even for a first offense. This is a zero tolerance policy. No employee who violates this policy will be given a second chance. 2. Enforcement of Rule Prohibiting Employees from Having Illegal Drugs or Alcohol in their Bodies DuringdDuring Working Time D. Pre-employment Drug Testing All District applicants are subject to pre-employment drug testing. Those who are applying for safety-sensitive positions are subject to a FTA pre-employment drug test. Those who are not applying for a safety-sensitive position are subject to a District pre-employment drug test. All drug tests will be administered by a medical facility designated by the District. If the drug test is cancelled by the Medical Review Officer ( MRO), the employee must retake and pass the drug test before being hired. The District extends conditional offers of employment to successful candidates contingent on their passing a pre-employment drug test; any prospective employee refusing to submit to the drug test will not be hired by the District. A covered employee or applicant, who has not performed a safety-sensitive function for ninety (90) consecutive calendar days regardless of the reason and has not been in the District’s random selection pool, shall take a pre-employment drug test with a verified negative result before being permitted to perform any safety-sensitive duties. Any prospective employee with a positive drug test will be rejected from further consideration for employment with the District. Further, any applicant or employee who has previously failed or refused a drug test must provide proof to the District, prior to being Page 4 of 21 Board Policy No. 24 – Employee Drug and Alcohol Policy (continued) considered for employment, that he/she has successfully completed a referral, evaluation and substance abuse treatment plan compliant with the requirements in 49 CFR Parts 40 and 655. The District will provide each applicant or employee who fails a drug test with a list of names, addresses and telephone numbers of locally available Substance Abuse Professionals ( SAPs) qualified under 49 CFR Part 40 requirements. District policy, not FTA regulations, requires that all fees, other than the cost of the drug test itself, including but not limited to referral, counseling and treatment fees will be paid by the candidate/employee. E. Reasonable Suspicion Alcohol and Drug Testing All District employees are subject to reasonable suspicion alcohol testing and drug testing. Those who work in safety-sensitive positions are subject to a FTA alcohol test and drug test. Those who do not work in a safety-sensitive position are subject to a District alcohol test and drug test. When the District has reasonable suspicion to believe that an employee has violated the prohibitions set forth in this policy, the employee will be required to submit to an alcohol test and/or a drug test immediately upon demand by the District. Reasonable suspicion testing will be based on specific, contemporaneous, articulable observations concerning the appearance, behavior, speech or body odors of an employee. One or more supervisors or District officials trained in detecting the signs and symptoms of drug use and alcohol misuse must make the required observations. For FTA reasonable suspicion alcohol tests, the alcohol testing authorized in this section ( and the observations required by the supervisors or District officials referred to above) must occur during, just before or just after the performance of safety sensitive job functions. Observations leading to District alcohol tests will likewise be made during, just before or just after the performance of safety sensitive job functions. Observations leading to FTA drug tests may occur any time a safety-sensitive employee is on duty. Observations leading to NCTD drug tests may occur any time a non-safety-sensitive employee is on duty. FTA regulations require that any employee with a positive drug test or an alcohol concentration measure of 0.02 percent or higher be immediately removed from service, and that an employee with an alcohol concentration measure of 0.02 to 0.039 percent will, at a minimum, not be allowed to perform a safety-sensitive function until the start of the employee’s next regularly scheduled duty period that is at least eight hours following the administration of the alcohol test. District policy, not FTA regulations, requires that all employees who are required to submit to a reasonable suspicion drug and alcohol test (District or FTA) be removed from working until the results of both tests are known. Further, any employee with a positive drug test or having a breath alcohol concentration measure of 0.02 percent or higher will be terminated from employment with the District. Any employee who has a positive FTA drug test or an alcohol concentration measure of 0.04 percent or higher on an FTA-mandated alcohol test will be referred to the SAP for evaluation in accordance with 49 CFR Part 40. District policy, not FTA regulations, requires that all costs, other than the cost of the drug test itself, including but not limited to, referral, counseling and treatment fees will be paid by the candidate/employee. Refusal to submit to any testing required by this section will be sufficient grounds for termination and will result in the employee being relieved of his or her duties immediately. Page 5 of 21 Board Policy No. 24 – Employee Drug and Alcohol Policy (continued) F. Post-Accident Alcohol and Drug Testing FTA regulations require drug and alcohol testing following certain accidents. In addition, the District requires post-accident testing for accidents in circumstances when such testing is not required by the FTA. The following guidelines describe when a test is required by the FTA versus when the test is required by District policy. Employees will be informed whether the test is an FTA test or a District test. District tests will not be conducted using FTA testing forms. 1. FTA Definition of “Accident”: An accident, as defined by the FTA, is an occurrence associated with the operation of a vehicle, if as a result: a. An individual dies; or b. An individual suffers a bodily injury and immediately receives medical treatment away from the scene of the accident; or c. With respect to an occurrence in which the public transportation vehicle involved is a bus, van or automobile, one or more vehicles ( including non-FTA funded vehicles) incurs disabling damage as a result of the occurrence and such vehicle or vehicles are transported away from the scene by a tow truck or other vehicle. d. Disabling damage means damage that precludes departure of a motor vehicle from the scene of the accident in its usual manner in daylight after simple repairs. Disabling damage includes damage to a motor vehicle, where the vehicle could have been driven, but would have been further damaged if so driven. Disabling damage does not include damage that can be remedied temporarily at the scene of the accident without special tools or parts, tire disablement without other damage even if no spare tire is available or damage to headlights, tail lights, turn signals, horns, or windshield wipers that makes the vehicle inoperative. 2. Fatal Accidents. As soon as practicable following an accident involving the loss of human life, each surviving employee operating the public transportation vehicle at the time of the accident shall submit to an alcohol test and a drug test. Further, any other employee whose performance could have contributed to the accident ( e.g., a mechanic in the case of brake failure causing the accident), as determined by the District using the best information available at the time of the decision, shall also be required to submit to an alcohol test and a drug-screen test. 3. Non-fatal Accidents. As soon as practicable following an accident not involving the loss of human life, each employee operating the public transportation vehicle ( as defined above in item 4.F.1. – FTA Definition of “Accident”) at the time of the accident shall submit to an alcohol test and a drug-screen test, unless District management determines, using the best information available at the time of the decision, that the employee’s performance can be completely discounted as a contributing factor to the accident. In addition, any employee whose performance could have contributed to the accident, as determined by the District, using the best information available at the time of the decision, will be required to submit to an alcohol test and a drug-screen test. Page 6 of 21 Board Policy No. 24 – Employee Drug and Alcohol Policy (continued) 4. District Definition of “ Accident”. The District adheres to the same definition of an accident as the FTA definition above at 4.F.1., which extends application to any District vehicle, including non-revenue vehicles. All employees involved in an accident in as defined in 4.F.1 will be subject to a post-accident drug and alcohol test. The procedures and rules outlined in this section apply uniformly regardless of whether the test is a District test or an FTA test; however, the District sets the procedures for its own testing based on its own authority, not FTA authority. 5. Post-Accident Testing Procedures. a. Any employee involved in an accident is prohibited from using alcohol for eight 8) hours following the accident or until he or she undergoes a post-accident alcohol test and drug test. Any employee involved in an accident who fails to remain readily available for the testing required by this section, including notifying District officials of his or her location if he or she leaves the scene of the accident prior to submission to such tests, will be deemed to have refused to submit to testing. b. Post-accident testing will occur after the employee assists in resolution of the accident or receives medical attention following the accident. The District will complete the post-accident drug testing as soon as possible, and such testing will occur no later than thirty-two (32) hours after the accident. The District will attempt to complete the post-accident alcohol testing within two (2) hours of the accident. If the testing is not completed within two (2) hours, the District will continue to attempt to complete the test and will prepare a report explaining why the breath specimen was not collected within two (2) hours. If the alcohol test is not completed within eight (8) hours of the accident, the District shall cease attempts to complete the test and update the report as to why the test was not completed. c. Refusal to submit to a test required by this section will be sufficient grounds for termination and will result in the employee being relieved of his or her duties immediately. Based on FTA regulations, any employee with a positive drug test or having an alcohol concentration measure of 0.02 percent or higher will be immediately removed from service. Based on District policy, any employee with a positive drug test and/or an alcohol concentration measure of 0.02 percent or higher will be terminated from employment with the District. d. Any employee who has a positive FTA drug test or an alcohol concentration measure of 0.04 percent or higher on an FTA-mandated alcohol test will be referred to the SAP for evaluation in accordance with 49 C.F.R. Part 40. District policy, not FTA regulations, requires that all costs, other than the cost of the drug test itself, including but not limited to referral, counseling and treatment fees will be paid by the employee/former employee. Page 7 of 21 Board Policy No. 24 – Employee Drug and Alcohol Policy (continued) G. Random Alcohol Testing and Drug Testing The testing in this section applies only to safety-sensitive employees as defined above.) All safety-sensitive employees will be subject to unannounced, random alcohol testing and random drug testing in accordance with 49 CFR Part 655. The selection of employees for random alcohol testing and random drug testing shall be made randomly by the District. The selection of employees for random alcohol testing and random drug testing shall be by a scientifically valid method, such as a random number table or a computer-based random number generator. Each employee will have an equal chance of being tested each time selections are made. These tests will not be announced in advance and will be administered on all days and at during all work hours throughout the year. The current minimum testing requirement is to annually perform drug tests on twenty-five ( 25) percent and alcohol tests on ten ( 10) percent of the safety-sensitive employees. The District’s Drug and Alcohol Program Manager (DAPM) will adjust the number of tests periodically to ensure the District conducts no fewer than the FTA-mandated number of tests. Each employee selected for random alcohol testing and/or random drug testing must proceed to the test site immediately. Refusal to submit to such testing will be sufficient grounds for termination and will result in the employee being relieved of his or her duties immediately. Based on FTA regulations, any employee failing a drug test or having an alcohol concentration measure of 0.02 percent or higher will be immediately removed from service. Based on District policy, any employee with a positive drug test and/or an alcohol concentration measure of 0.02 percent or higher will be terminated from employment with the District. Any employee who has a positive FTA drug test or a finding of an alcohol concentration measure of 0.04 percent or higher on an FTA-mandated alcohol test will be referred to the SAP for evaluation in accordance with 49 CFR Part 40. District policy, not FTA regulations, requires that all costs, other than the cost of the drug test itself, including but not limited to referral, counseling and treatment fees will be paid by the employee/former employee. Random alcohol testing is only permissible just before an employee performs safety-sensitive duties, during that performance, and just after an employee has performed covered duties. H. Drug Testing for Employees Assuming Safety-Sensitive Duties Any employee who accepts a position with the District involving safety-sensitive duties, who has previously been engaged in non-safety-sensitive duties, will be required to submit to and pass a pre-employment drug test prior to assumption of the safety-sensitive duties. In addition, any employee who has not performed a safety-sensitive function for ninety (90) consecutive calendar days regardless of the reason, and where that employee has not been in the District’s random drug testing selection pool during that time, shall be required to take a pre-employment drug test in accordance with Section IV(D) above, with a verified negative result before returning to duty. If the drug test is cancelled by the MRO, the employee must retake and pass the test before assuming safety-sensitive duties. Refusal to submit to such testing will be sufficient grounds for termination of employment. Any employee failing a drug test will be immediately removed from service. Further, failure of a drug test will subject the employee to termination from employment with the District. Any employee who has a positive FTA drug test will be referred to the SAP for evaluation in accordance with 49 CFR Part 40. District policy, not FTA regulations, requires that all costs, other than the cost of the drug test itself, including but not limited to referral, counseling and treatment fees will be paid by the employee/former employee. Page 8 of 21 Board Policy No. 24 – Employee Drug and Alcohol Policy (continued) I. Return to Duty and Follow-Up Alcohol Testing and Drug Testing District policy, not FTA regulations, requires that any employee who is allowed to return to duty following leave for substance abuse rehabilitation must first provide a negative drug or alcohol (or both) test result. Employees returning to duty following leave for substance abuse rehabilitation will be required by District policy to undergo unannounced follow-up alcohol and/or drug testing as determined by an EAP Counselor. The number and frequency of such follow-up testing shall be directed by the EAP Counselor. The employee will be subject to follow-up testing for as long as prescribed by the DAPM, but such testing shall not continue beyond five years from the date the employee returns to their duties. The follow-up testing following a leave of absence specified in this paragraph is required by District policy, not FTA regulations. Based on District policy, any employee with a positive drug test and/or an alcohol concentration measure of 0.02 percent or higher will be terminated from employment with the District. District policy, not FTA regulations, requires that all costs, other than the cost of the drug test itself, including but not limited to referral, counseling and treatment fees will be paid by the employee/former employer. J. Alcohol Testing and Drug Testing Following Injuries The alcohol testing and drug testing required in this section is required by the District; these are not FTA-mandated tests. Any employee who sustains an injury on the job may be required to submit to an alcohol test and a drug test as part of the physician’s examination of the employee for the injury, at Management’s discretion. Refusal to submit to such alcohol tests or drug tests will result in the employee being relieved of his or her duties immediately and will subject the employee to termination of employment. Any employee with a positive drug test or an alcohol concentration measure of 0.02 percent or higher will be terminated by the District. K. Falsification, Failure to Timely Arrive for Testing, and Failure to Notify Any employee who provides false information in connection with an alcohol test or drug test administered under this policy, or who attempts to falsify test results through tampering, contamination, adulteration or substitution, shall be terminated by the District. Any employee who fails to appear for a drug test or alcohol test within a reasonable time when required by this policy, or to remain at the testing site until the testing process is completed, or to cooperate fully in the testing process, will be deemed to have refused to be tested, and will be considered to have a positive test. Under the federal Drug Free Workplace Act, all employees are required to notify the Human Resources department in writing immediately, but in any event within five (5) calendar days, after they have been convicted of violating a criminal drug statute that occurred in the workplace or while working. Any employee who falls to provide such notification shall be subject to termination of employment. L. Behavior Constituting a Refusal to Submit to a Test The behaviors listed in 49 CFR Part 40 apply to all tests administered under this policy regardless of if they are FTA-mandated or required by the District’s authority; however, District tests will not Page 9 of 21 Board Policy No. 24 – Employee Drug and Alcohol Policy (continued) be conducted on DOT testing forms. 1. The behaviors that constitute a refusal to submit to a drug and/or alcohol test are identified in 49 CFR Part 40 as amended, and below. Employees can obtain a current list from the DAPM. M. Refusal to Submit to Testing for Alcohol and/or Drug In accordance with 49 CFR Part 655 the following are considered a refusal to test if the employee: 1. Fails to appear for any test ( excluding pre-employment) within a reasonable time, as determined by the employer, after being directed to do so by the employer; 2. Fails to remain at the testing site until the testing process is complete; 3. Fails to provide a urine specimen or adequate amount of breath for any drug or alcohol test required by 49 C.F.R. Part 40 or DOT agency regulations; 4. In the case of a directly observed or monitored collection in a drug test, fails to permit the observation or monitoring of provision of a specimen; 5. For an observed collection fails to follow the observer’s instructions to raise your clothing above the waist, lower clothing and underpants, and to turn around to permit the observer to determine if you have any type of prosthetic or other device that could be used to interfere with the collection process; 6. Possessing or wearing a prosthetic or other device that could be used to interfere with the collection process; 7. Admitting to the collector or MRO that you adulterated or substituted the specimen; 8. Fails to provide a sufficient amount of urine or breath when directed, and it has been determined, through a required medical evaluation, that there was no adequate medical explanation for the failure; 9. Fails or declines to take a second test the employer or collector has directed you to take; 10. Fails to undergo a medical examination or evaluation, as directed by the MRO as part of the verification process, or as directed by the DER as part of the “Shy Bladder” or “Shy Lung” procedures; 11. Fails to sign the certification at Step 2 of the Alcohol Test Form; 12. Fails to cooperate with any part of the testing process (e.g., refuses to empty pockets when so directed by the collector, behaves in a confrontational way that disrupts the collection process, fails to wash hands after being directed to do so by the collector); 13. If the MRO reports that you have a verified adulterated or substituted test result that test is considered a refusal to test. Page 10 of 21 Board Policy No. 24 – Employee Drug and Alcohol Policy (continued) Any covered employee who refuses to submit to a drug or alcohol test will be immediately removed from performing any safety-sensitive function and in accordance with 49 C.F.R., Part 40.285, and Subpart O will be referred to the District’s SAP. Procedures for Alcohol and Drug Testing A. Procedure for Alcohol Tests All FTA-mandated alcohol testing called for in this policy shall be conducted in accordance with 49 CFR Part 40: Procedures for Transportation Workplace Drug and Alcohol Testing Programs, as amended. All District-mandated breath alcohol testing will follow the same procedures but District-mandated tests are not required or governed by 49 C.F.R. Part 40. However, the results of FTA-mandated breath alcohol testing will be compiled on a DOT Alcohol Testing Form (ATF). The results of breath alcohol testing required by the District (and not FTA) will be on non-DOT testing forms. District management will inform the collection facility whether the test is an FTA or a District test. The alcohol testing in this policy applies regardless of whether the alcohol was ingested as beverage alcohol or in a medicinal or other preparation. The alcohol tests will be administered by a breath alcohol technician (BAT), using an evidential breath testing device (EBT). The BAT will be trained to proficiency in the operation of the EBT. The EBTs are subject to a quality assurance plan developed by the manufacturers of EBTs. In order to insure that the test results are attributed to the correct employee, the BAT will require the employee to provide photo identification before tests are conducted. If the result of the alcohol screening test is an alcohol concentration of less than 0.02 percent, the employee will be deemed to have passed the FTA and District alcohol test. If the initial result of an FTA screening test is a breath alcohol concentration of 0.02 percent or higher, a confirmation test shall be performed under the FTA’s authority. If the initial result of a District screening test is a breath alcohol concentration of 0.02 percent or higher, a confirmation test shall be performed under the District s ’ authority. All alcohol confirmation tests shall be conducted within thirty ( 30) minutes of the completion of the screening test. B. Procedure for Drug Tests All FTA-mandated drug tests called for in this policy shall be conducted in accordance with 49 C.F.R. Part 40: Procedures for Transportation Workplace Drug and Alcohol Testing Programs, as amended. All District-mandated drug tests will follow the same procedures but Districtmandated tests are not required or governed by 49 CFR Part 40. The DOT drug testing custody and control form will be used in connection with all FTA-mandated drug tests administered pursuant to this policy. The results of drug testing required by the District (and not FTA) will be on non-DOT testing forms. District management will inform the collection facility whether the test is an FTA or a District test. The drugs tested for will be marijuana, cocaine, opiates, phencyclidine, and amphetamines amphetamine, methamphetamine, MDMA, MDA, MDEA [ecstasy]). When an employee arrives at the collection site, the collection site person shall positively identify the employee through the presentation of photo identification. Collection personnel will be trained to ensure employee privacy in providing the urine specimen. Urine specimens collected for drug testing will be split into two (2) containers at the collection site. Collection site personnel will be trained to maintain the integrity of the specimen collection and transfer process. In order to maintain the integrity of the urine specimen, the specimen shall Page 11 of 21 Board Policy No. 24 – Employee Drug and Alcohol Policy (continued) remain under the direct control of the collection site person from delivery to its being sealed in the mailer to the laboratory conducting the testing on the urine specimen. A tamper-proof sealing system will be utilized to ensure against undetected opening. The specimen bottle shall be identified with a unique identifying number identical to that appearing on the urine custody and control form. Transfer of urine specimens will be accomplished through appropriate chain of custody procedures. The forms accompanying the specimens will have unique preprinted specimen ID numbers and the employee will sign or initial certifying that the specimen was taken from that employee. All drug tests that are positive will be retested in a confirmation test prior to the laboratory specifying a positive result on a drug test. All drug testing done under this policy will be done by a laboratory that has been certified by the federal Department of Health and Human Services (DHHS). The District’s current DHHS-certified laboratory is Pacific Toxicology and Quest Diagnostics, Inc. for out-of -town testing. All confirmatory tests will be performed using CC/MS techniques. There are federally mandated cut-off limits for the minimum quantity of drug that must be detected in order for a positive test on the initial and confirming test. The current cut-off limits expressed in nanograms per milliliter (ng/ml) are as follows: Initial Screen Confirming Test Marijuana (THC) 50 15 Cocaine 150 100 2000 2000 Phencyclidine (PCP) 25 25 6—Acetylmorphine Amphetamines Amphetamine Methamphetamin e MDMA MDA MDEA 10 10 500 250 Drug Opiates Codeine Morphin e Heroin In order to protect the District’s employees and the integrity of the drug screen testing process, the District has retained the services of an MRO. The District’s MRO is Benjamin Gerson, M.D., of University Services. Dr. Gerson’s phone number is 215-637-6800. The MRO is a licensed physician with knowledge of drug abuse disorders. If the laboratory results are confirmed positive, the MRO will interview the employee and review all information provided by the employee to determine whether the results are indicative of illegal or illicit drug use. If the employee provides an adequate explanation, the MRO will verify the test results as negative with the Drug and Alcohol Program Manager and take no further action. If the test result of the primary specimen is positive, the employee may request that the MRO direct that the second split specimen be tested in a different DHHS laboratory. District policy requires that employees bear all expenses related to verification tests they request. The MRO shall honor such request if it is made within seventy-two (72) hours of the employee Page 12 of 21 Board Policy No. 24 – Employee Drug and Alcohol Policy (continued) having been notified of a verified positive test. If an employee has not contacted the MRO within seventy-two ( 72) hours, the employee may present to the MRO information documenting that serious illness, injury, inability to contact the MRO, lack of actual notice of the verified positive test, or other circumstances unavoidably prevented the employee from timely contacting the MRO. If the MRO concludes that there is a legitimate explanation for the employee’s failure to contact the MRO within seventy-two (72) hours, the MRO shall direct that analysis of the split specimen be performed. The results of the test at the second DHHS-approved laboratory will be forwarded to the MRO. If the results of the second test fail to confirm the presence of the drugs or drug metabolites found in the primary specimen, the MRO shall cancel the test. If the MRO advises the District that the result of the drug test was negative, but that the test was diluted because the specimen contained a creatinine concentration greater than or equal to two 2) mg/dL, but less than or equal to five (5) mg/dL, the employee will be required to take another drug screen test immediately; the new test will be an observed collection. In this circumstance, the employee will be given as little advance notice as possible that he or she must return to the collection site. The test result from this test will be used to determine if the employee passes the drug test. If the MRO advises the District that the result of the drug test was negative, but that the test was diluted and the specimen contained a creatinine concentration greater than five (5) mg/dL, the employee will be required to take another drug screen test immediately; the new test will not be an observed collection. In this circumstance, the employee will be given as little advance notice as possible that he or she must return to the collection site. The test result from this test will be used to determine if the employee passes the drug test. The drug testing laboratory shall report test results to the MRO in writing, identifying the results of the test. The MRO will report to the DAPM whether the test is positive or negative, and will report the drug for which there was a positive test, but shall not disclose the quantitation of the test results (except in the case of a grievance, lawsuit, or other proceeding or inquiry initiated by the employee arising out of the verified positive drug test). All records pertaining to urine specimens shall be retained by the drug testing laboratory for a minimum of two (2) years. The drug testing laboratory shall retain all urine specimens confirmed as positive and place them into properly secured long-term frozen storage for a minimum of one (1) year. NCTD policy, not FTA regulations, requires that employees who are waiting to provide a breath or urine sample refrain from using electronic devices such as laptops, cell phones, iPads, and PDAs. Employees violating this rule will be suspended without pay for a minimum of one day. Policy Regarding Treatment for Drug or Alcohol Addiction A. The following policy on treatment for drug and alcohol addiction, follow-up testing and the associated consequences is a District policy, not an FTA policy. Any employee, who feels that he or she has developed an addiction to, dependence upon or problem with alcohol or drugs, legal or illegal, is encouraged to seek assistance. No disciplinary action will be issued against any employee who (1) comes forward to management with his/her problem prior to being requested to submit to an alcohol test or a drug screen test and before the District learns of a violation of the drug and alcohol policy, and (2) provided the employee has not violated the policy before coming to management. If an employee comes forward to management regarding a drug or alcohol problem seeking assistance, but management learns that the employee violated this policy before coming forward, the District will discipline the employee for violating the policy, up to and including termination of employment. Further, if the District learns of a violation of this policy before the employee comes forward, or if the employee comes forward with the problem only after being requested to submit to an alcohol test or a drug screen test, the employee will be subject Page 13 of 21 Board Policy No. 24 – Employee Drug and Alcohol Policy (continued) to termination. B. How to Seek Assistance. To seek assistance for a problem with drugs or alcohol, you may contact NCTD’S Human Resources Manager at 760-966-6576 or District’s Employee Assistance Program ( EAP) as noted in Appendix A. Information concerning the EAP is available in the Human Resources Department and posted on the intranet. All requests for assistance will be kept confidential. C. The District has worked with the EAP to develop a list of resources ( hospitals and community organizations) offering alcohol or drug treatment programs. The EAP will refer employees seeking assistance to a facility covered by their healthcare (if applicable) or another appropriate treatment organization. Any employee failing an alcohol test or drug test required under this policy will be provided the above-referenced list of resources. The referral to the EAP is independent of any disciplinary action that the District may impose and the employee is responsible for all costs associated with analysis and treatment. D. Rehabilitation itself is the responsibility of the employee. However, any employee seeking medical attention for alcoholism or drug addiction will be entitled to benefits available under the District’s group medical insurance plan applicable to that employee, subject to the restrictions and limits stated in the applicable plan document. Furthermore, rehabilitation leave will be available only to those employees whose employment is not terminated for misconduct prior to coming forward. Rehabilitation leave requests are subject to the leave of absence provisions in the District’s leave policy (or the applicable administrative leave policies), in accordance with applicable law. Rehabilitation leave will be available on a one-time-only basis, subject to the conditions for continuing employment in Paragraph E below. The District will not offer rehabilitation leave on a second occasion. E. To be eligible for continuation of employment following a rehabilitation leave, the employee must: 1. Undergo evaluation by an EAP Counselor, who will recommend a course of rehabilitation. (This is a District-mandated evaluation, not an FTA requirement). 2. Begin a program of rehabilitation, strictly follow the rules and guidelines of that program, and sign a release of medical information, relating to drug and alcohol treatment, so the District can monitor his or her progress. 3. Remain continuously enrolled in a treatment program and actively participate in that program. 4. Not reject treatment or leave the treatment program prior to being properly discharged therefrom. 5. Agree that the EAP Counselor will determine whether the employee has successfully completed the program. 6. Not violate the Drug and Alcohol Policy. Page 14 of 21 Board Policy No. 24 – Employee Drug and Alcohol Policy (continued) Any employee suffering from an alcohol or drug problem who rejects treatment or who leaves a treatment program prior to being properly discharged therefrom will be terminated from employment. All employees returning to active employment from rehabilitation will be required to sign a Return to Work Agreement” requiring: 1. That the employee must pass a non-DOT alcohol test and/or non-DOT drug screen test before returning to work; 2. That an EAP Counselor must determine that the employee has properly followed an appropriate rehabilitation program and is capable of returning to duty; 3. That the employee agrees to unannounced alcohol testing and drug testing. The number and frequency of follow-up testing shall be determined by the EAP Counselor (this is required by District policy, not FTA regulations). The employee will be subject to follow-up testing for as long as prescribed by the EAP Counselor, but such tests shall not continue beyond five years from the date of the employee’s return to duty; 4. That failure of any drug test or alcohol test or refusal to immediately submit to such testing during this period shall be grounds for immediate termination based on District policy (not FTA regulations); 5. That the employee must maintain an acceptable attendance and performance record, not violate the Drug and Alcohol Policy, and comply with all other NCTD rules and policies upon his/her return to work. Miscellaneous Information Regarding this Drug and Alcohol Policy A. Contact Person –Drug and Alcohol Program Manager (DAPM). See Appendix A. B. Training The District provides training for all of its supervisors in order for them to be able to make a determination of whether reasonable suspicion exists for an employee to be required to submit to reasonable suspicion alcohol testing and drug testing. This training includes a minimum of sixty (60) minutes of supervisor training on the effects of drug use and sixty 60) minutes of supervisor training on the effects of alcohol use and this policy. Training of newly promoted or hired supervisors will occur before they assume supervisory duties unless they are under the direct supervision of a trained supervisor or manager). In addition, the District will also provide a drug-free awareness program for employees, with information outlining the dangers of drug and alcohol abuse in the workplace. The District will provide information regarding available drug and alcohol counseling, rehabilitation, and employee assistance programs. Page 15 of 21 Board Policy No. 24 – Employee Drug and Alcohol Policy (continued) C. Notice of Certain Requirements in Addition to FTA-Mandated Requirements The policy is designed in part to comply with FTA regulations on prevention of prohibited drug use and alcohol misuse in transit operations, 49 CFR Part 655. However, NCTD has added certain additional requirements to this policy, including the following: 1. This policy applies to all employees of NCTD, not just safety-sensitive employees as defined by the FTA. As such, District employees who are not safety-sensitive employees are subject to pre-employment drug testing and to reasonable suspicion, post-accident and post-injury drug testing and alcohol testing. 2. The District requires post-accident alcohol and drug testing in cases where such testing is not required by the FTA. The FTA regulations limit the circumstances under which post-accident alcohol and drug testing will occur, as set forth in Section IV.F. and Section V. above. The District requires post-accident alcohol and drug testing using a much broader definition of accident. 3. The District requires alcohol testing and drug testing following work injuries (, if deemed necessary) as a result of an incident or unsafe action that had a direct result in causing the injury, which is not required by FTA regulations. 4. This policy requires employees using prescription drugs, as defined under Illegal Drugs, Legal Drugs, and Alcohol, Section B in this policy, to report the prescription to Human Resources by using the “Prescription Drug Notification Form”., and to provide the medication itself (if requested) to the District medical facility. 5. This policy sets forth the disciplinary action for violations of the policy, which is a District decision, and is not part of the FTA regulations. 6. This policy requires that all costs of drug treatment and/or SAP evaluation be paid by the employee or former employee. This is a District decision, not an FTA requirement. D. Substance Abuse Professional The District has secured the services of an SAP as noted in Appendix A. E. Right to Examine Records Every employee has the right to review his/her drug and alcohol testing records (except SAP determined DOT follow-up testing plans), provide information to dispute the results of a drug or alcohol test and, upon written request, to obtain copies of any records pertaining to his or her drug and alcohol tests, including records pertaining to equipment calibration and laboratory certifications. Page 16 of 21 Board Policy No. 24 – Employee Drug and Alcohol Policy (continued) Approvals Board Chair Date Executive Director Date General Counsel Date Page 17 of 21 Board Policy No. 24 – Employee Drug and Alcohol Policy (continued) DATE ISSUED REVISION NUMBER RESOLUTION NUMBER 10/18/2012 Adopted 10/17/2013 1 2013 Revision 02/20/2014 2 2014 Revision 10/16/2014 3 2014 Revision 11/19/2015 4 2015 Revision 10/20/2016 5 16-10 2016 Revision 1/19/2017 6 17-01 2017 Revision COMMENTS Page 18 of 21 Board Policy No. 24 – Employee Drug and Alcohol Policy (continued) Appendix A 1. DOT/FTA Designated Safety-Sensitive Positions: Deputy Chief Operations Officer – Bus Bus Mechanical Officer Quality Control Supervisor – Bus Quality Control Supervisor – Rail Mechanical 2. NCTD/Non-DOT/Non-FTA Designated Safety-Sensitive Positions: Architect Bus and Facilities System Safety Specialist Chief Development Officer Chief of Safety Chief of Transit Enforcement Chief Operations Officer -– Rail Chief Operations Officer – Transit Planning & Bus Operations Chief Technology Officer Civil Engineer - All Code Enforcement Lead Officer Code Enforcement Officer Code Enforcement Supervisor Deputy COO – Rail Systems Director of Engineering Director of Facilities Director, Operations Control Center\ Facilities Engineer Operations Control Center Coordinator Manager, Right of Way Project Safety Review Officer - All Quality Control Supervisor - Facilities Rail Mechanical Officer Rail Operations Officer Rail System Safety Specialist Rail Systems Engineer (LTD) Rail Systems Project Manager Right of Way Officer (All) Right of Way Officer II Senior Quality Control Supervisor - Facilities Senior Network Engineer Senior Network Engineer PTC (LTD) Senior Rail Engineer Senior Systems Engineer Signal Engineer System Safety & Compliance Officer Page 19 of 21 Board Policy No. 24 – Employee Drug and Alcohol Policy (continued) System Safety Specialist - All Transit Enforcement Manager 3. DAPM Contact Information Any employees having questions about the District’s Drug and Alcohol Policy should contact: Rose Jean-Paul Human Resources Manager 760-966-6576 In the event the Human Resources Manager is unavailable, one of the following individuals will serve as the DAPM: Natasha Martinez Human Resources Generalist 760-967-2801 Anna Semenov Human Resources Generalist 760-967-2815 Karen Tucholski Chief Administrative Officer 760-966-6574 4. EAP Provider Information The current EAP provider, MHN, has provided two ( 2) dedicated SAP’s available to NCTD. In the event the below dedicated SAPs are unavailable, the next available SAP will be provided through MHN’s toll free number 1-800-242-6220. MHN Point of Contact: Jaclyn Kuwada Senior Account Manager Account Management MHN - a Health Net Co. 2370 Kerner Blvd San Rafael, CA 94901 Phone: (415) 460-8142 jaclyn.s.kuwada@mhn.com SAP: Phillip Ybarra 32605 Temecula Parkway, Suite 303 Temecula, CA 92592 760-443-1397 http://compassionatetherapy.com/ Page 20 of 21 Board Policy No. 24 – Employee Drug and Alcohol Policy (continued) Sabrina Finn Reid 910 Armorlite Dr. San Marcos, CA 92069 760-666-0049 http://www.sapsocal.com/ Page 21 of 21 Agenda Item # 4 AWARD CONTRACT NO. 17026 TO HERZOG TECHNOLOGIES, INC. FOR GRADE CROSSING CONTROL UPGRADES Time Sensitive Consent X STAFF RECOMMENDATION: Award Contract No. 17026 to Herzog Technologies, Inc. for Grade Crossing Control Upgrades in an amount not-to-exceed $ 506,858, upon review and approval of General Counsel. BACKGROUND INFORMATION: The North County Transit District (NCTD) has a need to upgrade highway grade crossing control equipment along the San Diego Subdivision. These upgrades will replace equipment that is at the end of its useful life and will be upgraded as a state of good repair project. NCTD released an Invitation for Bid (IFB) on October 12, 2016 for Grade Crossing Control Upgrades, period of performance for this contract is 365 days from Notice to Proceed. NCTD received four ( 4) sealed bids on November 22, 2016 in response to the IFB. The bids were evaluated on price, responsiveness, and responsibility and Herzog Technologies, Inc. was identified as the lowest responsive and responsible bidder. Under the terms of the contract, Herzog would perform the following services: Replace end of life grade crossing controller Replace end of life highway grade crossing predictors Install power off lights Staff recommends that the Board authorize the Executive Director to award Contract No.17026 to Herzog Technologies, Inc. for Grade Crossing Control Upgrades in an amount not-to-exceed $ 506,858, upon review and approval of General Counsel. ATTACHMENT: FISCAL IMPACT: COMMITTEE REVIEW: STAFF CONTACT: None The fiscal impact of this proposed contract action is $506,858, which is to be funded with Federal Transit Administration (FTA) grant funds matched with local Transportation Development Act (TDA) monies. Project accounts 11901, 512901, 513901, 61007, and 611001 collectively have a balance of $598,340 available for this scope of work. If the Board approves this proposed contract action, the collective available balance in these project accounts will be reduced to $91,482. None Eric Roe, Deputy Chief Operating Officer – Rail Systems E-mail: eroe@nctd.org Phone: 760-966-6596 January 19, 2017 Board Meeting Staff Report No.: SR-17-01-004 Agenda Item # 5 AUTHORIZE THE EXECUTIVER DIRECTOR TO EXECUTE TASK ORDER NO. 2 FOR THE PREPARATION OF A PROJECT STUDY REPORT FOR THE EAST DIVISION MAINTENANCE FACILITY Time Sensitive STAFF RECOMMENDATION: BACKGROUND INFORMATION: Consent x Authorize the Executive Director to execute Task Order (TO) No. 2 to HNTB under Contract No. 16032 in an amount not-to-exceed $164,000 for the preparation of a Project Study Report (PSR) for the East Division Maintenance Facility. BREEZE, LIFT, and FLEX revenue and non-revenue vehicle fleets are stored and maintained at two North County Transit District ( NCTD)-owned facilities. The West Division Maintenance Facility (West Division) is located at 305 Via Del Norte in Oceanside, and the East Division Maintenance Facility ( East Division) is located at 755 Norlak Avenue in Escondido. Both the West Division and the East Division are designed to support BREEZE, LIFT, FLEX, and nonrevenue fleets. The two facilities store and maintain a combined total of 225 revenue vehicles. West Division supports 150 revenue vehicles and East Division supports 75 revenue vehicles. The East Division Maintenance Facility has reached capacity and currently 14 revenue vehicles and 16 non-revenue vehicles are stored offsite. On June 18, 2015, the Board authorized the Executive Director to award nine (9) As-Needed On-Call Contracts for Civil Engineering Services each with an annual not-to-exceed contract value of $ 500,000. HNTB was one of the firms recommended by staff and awarded a contract as a result of that Board action. This Task Order for the Project Study Report (PSR) would be issued under that authority. The PSR involves three (3) adjacent parcels owned by NCTD: the East Division Maintenance Facility ( 755 Norlak Avenue), the Wonder Bread Lot ( 335 N. Quince Street), and the CNG Fueling Station and Parking Lot (400 N. Spruce Street). The PSR will analyze alternatives for transforming the East Division Maintenance Facility by: Developing the Wonder Bread Lot to address current and future parking needs. Identifying safety, security, sustainability, efficiency, operational, and maintenance improvements for the facility. Identifying infrastructure to support a future fleet that will be composed of zero emission vehicles. January 19, 2017 Board Meeting Staff Report No.: SR-17-01-005 The Consultant will conduct a needs assessment and prepare a Master Plan to establish the recommended preferred alternative. Following NCTD approval of the Master Plan, the PSR will be developed. Project phasing alternatives will be evaluated and discussed individually within the PSR document. The Consultant will coordinate with sub-consultants and subject matter experts as required to develop and complete the PSR narrative and cost estimate. The PSR would also address NCTD short- and long-term goals. The alternatives and concept designs shall include the development of the Wonder Bread Lot in conjunction with the East Division Maintenance Facility, the bus wash, and the fueling station(s) in a holistic design approach. The PSR would investigate and propose effective circulation within the bus maintenance facility and energy efficient and environmentally friendly improvements as part of this project. Staff recommends that the Board authorize the Executive Director to execute Task Order No. 2 to HNTB under Contract No. 16032 in an amount not-toexceed $ 164,000 for the preparation of a Project Study Report ( PSR) for the East Division Maintenance Facility. ATTACHMENT: FISCAL IMPACT: COMMITTEE REVIEW: STAFF CONTACT: None The fiscal impact of this proposed contract action is $164,000. The procurement is funded from local Transportation Development Act ( TDA) funds in account 115111, which has a budget of $1,184,494. To date, $20,613 has been spent, and an additional $ 75,442 has been encumbered. If the Board approves this proposed contract action, the available balance in this account will be $924,439. None Andrew Bohnert, Chief Development Officer E-mail: abohnert@nctd.org Phone: 760-966-6683 January 19, 2017 Board Meeting Staff Report No.: SR-17-01-005 Agenda Item # 6 AUTHORIZE THE EXECUTIVE DIRECTOR TO EXECUTE TASK ORDER NO. 1 WITH LOPEZ ENGINEERING UNDER CONTRACT NO. 17005 FOR AN ARC FLASH ANALYSIS AND TO DEVELOP AN INCIDENT ENERGY, SAFETY TRAINING, AND ELECTRICAL SAFETY PROGRAM Time Sensitive Consent X STAFF RECOMMENDATION: Authorize the Executive Director to execute Task Order ( TO) No. 1 to Lopez Engineering under Contract No. 17005 for an Arc Flash Analysis and to develop an Incident Energy, Safety Training, and Electrical Safety Program in an amount not to exceed $121,672. BACKGROUND INFORMATION: The North County Transit District (NCTD) seeks the services from an engineering firm to conduct an Arc Flash Analysis and to develop an Incident Energy, Safety Training, and Electrical Safety Program. The purpose of the analysis is to identify known hazards and requirements for labeling, safe work zones and Personal Protective Equipment ( PPE) in compliance with National Fire Protection Association (NFPA) 70 E, and complete an Incident Energy Analysis that shows the available fault current at service and each piece of equipment as it goes away from the service. This will include a short circuit and protective device study. Four (4) total assessments will be conducted: Short-Circuit Analysis, Protective Device Coordination, Interrupt Rating Analysis and Incident Energy Analysis. Lopez Engineering will be required to collect data on electrical equipment at all existing NCTD facilities ( General Administrative Offices (GAO), Tremont, West Division, East Division, COASTER Operations Facility, and SPRINTER Operations Facility), COASTER stations, SPRINTER stations, and transit centers. Lopez Engineering is also required to model and analyze the systems using State of California Licensed Electrical Engineers, and applicable reports must be stamped by the State of California Licensed Professional Engineer. On February 18, 2016, the Board authorized the Executive Director to award three (3) As-Needed On-Call Contracts for Electrical Engineering Services, each with an annual not-to-exceed contract value of $500,000. Lopez Engineering was identified as one of the three firms recommended by staff and awarded a contract as a result of that Board action. NCTD followed the established process for selecting Lopez Engineering from the three As-Needed On-Call contractors. A list of evaluation questions was published to all three contractors and three responses were received. NCTD then formed a Source Selection Committee (SSC) to review the responses and rank the firms. Lopez Engineering was the highest ranked firm and PCA was able to successfulely negotiate a Task Order Agreement with Lopez Engineering. Staff recommends that the Board authorize the Executive Director to execute Task Order (TO) No. 1 to Lopez Engineering under Contract No. 17005 for Arc January 19, 2017 Board Meeting Staff Report No.: SR-17-01-006 Flash Analysis and to develop an Incident Energy, Safety Training, and Electrical Safety Program in an amount not-to-exceed $121,672. ATTACHMENT: FISCAL IMPACT: COMMITTEE REVIEW: STAFF CONTACT: None The total fiscal impact of this contract action is $121,672. The costs are funded from Federal Transit Administration ( FTA) funds matched with local operating funds in account 817036, which has an available budget of $121,672. If the Board approves this contract action, the available balance in this account will be reduced to $0. None Andrew Bohnert, Chief Development Officer E-mail: abohnert@nctd.org Phone: 760-966-6683 January 19, 2017 Board Meeting Staff Report No.: SR-17-01-006 Agenda Item # 7 AUTHORIZE THE EXECUTIVE DIRECTOR TO FINALIZE AND EXECUTE AN EXHIBIT A FOR THE REFURBISHMENT OF THE TRAIN WASH SYSTEM AT THE SPRINTER OPERATIONS FACILITY Time Sensitive Consent X STAFF RECOMMENDATION: Authorize the Executive Director to finalize and execute an Exhibit A for the refurbishment of the train wash at the SPRINTER Operations Facility pursuant to the First Amended and Restated Addendum 18 to the Master Memorandum of Understanding ( MOU) between the San Diego Association of Governments SANDAG), San Diego Metropolitan Transit System ( MTS), and North County Transit District (NCTD) in an amount not-to-exceed $386,024. BACKGROUND INFORMATION: The train wash system at the North County Transit District (NCTD) SPRINTER Operations Facility (1021 West Washington Avenue, Escondido, CA) has been in service since 2008. Several components of the system are exhibiting signs of extreme wear and corrosion and operate in a limited capacity or in some cases no longer function. As a result, the system is no longer cleaning and drying trains efficiently or effectively. Replacement of worn and non-functioning components is necessary to refurbish the system and return it to normal operating condition. NCTD staff has been working with the San Diego Association of Governments SANDAG) to develop a scope of work for refurbishment of the SPRINTER train wash system. The estimated cost is $ 386,024. NCTD will be responsible for funding 100% of the project costs. Pursuant to the First Amended and Restated Addendum 18 to the MOU, NCTD is authorized to transfer local and minor capital improvement projects to SANDAG for implementation. In this instance, staff believes this approach is the most cost effective and timely method for implementing this replacement project. Staff recommends that the Board authorize the Executive Director to finalize and execute an Exhibit A for the refurbishment of the train wash at the SPRINTER Operations Facility pursuant to the First Amended and Restated Addendum 18 to the MOU between SANDAG, MTS, and NCTD in an amount not-to-exceed 386,024. ATTACHMENT: FISCAL IMPACT: None The fiscal impact of the recommended action is $386,024. The Exhibit A will be funded using Federal Transit Administration money, with the required match met with Transportation Development Act local funds. A total of $400,000 has been budgeted for this scope of work in Project No. 617030. Of the total amount budgeted, $0 has been encumbered, leaving an available balance of $400,000 before consideration of this item. If the proposed contract action is approved, the available balance will be reduced to $13,976. January 19, 2017 Board Meeting Staff Report No.: SR-17-01-007 COMMITTEE REVIEW: STAFF CONTACT: None Andrew Bohnert, Chief Development Officer E-mail: abohnert@nctd.org Phone: 760-966-6683 January 19, 2017 Board Meeting Staff Report No.: SR-17-01-007 Agenda Item # 8 AUTHORIZE AMENDMENT NO. 1 TO TASK ORDER NO. 5 FOR RAILROAD BRIDGE SUPERVISION AND INSPECTION SERVICES FOR THE LOS PEÑASQUITOS LAGOON BRIDGE REPLACEMENT PROJECT Time Sensitive X Consent X STAFF RECOMMENDATION: Authorize the Executive Director to execute Amendment No. 1 to Task Order No. 5 to Jacobs Engineering Group, Inc. under Contract No. 16061 in an amount notto-exceed $ 190,391 for a total Task Order amount of $ 362,739, to continue railroad bridge supervision and inspection services for the Los Peñasquitos Lagoon Bridge Replacement Project associated with the additional foundation improvements at all four bridge locations ( Bridges 246.1, 246.9, 247.1, and 247.7). BACKGROUND INFORMATION: On July 21, 2016, the North County Transit (NCTD) Board of Directors (Board) authorized the Executive Director to execute Task Order No. 5 under Contract No. 16061 to Jacobs Engineering Group, Inc. ( Jacobs) in an amount not-toexceed $172,348 for railroad bridge construction supervision services for the Los Peñasquitos Lagoon Bridge Replacement ( LPLBR) Project associated with the additional foundation improvements at all four bridge locations at mileposts 246.1, 246.9, 247.1, and 247.7. Jacobs provides bridge supervision services in compliance with Title 49 CFR 237.133(f) to ensure safe performance of work on existing bridges that carry train loads and provides qualified Railroad Bridge Supervisors to examine, authorize, or restrict railroad traffic over a bridge according to its immediate condition or state of repair. Task Order No. 5 was executed on October 19, 2016, and assumed a January 2017 completion for the additional bridge foundation improvements based on the construction schedule published at that time. In December 2016, the San Diego Association of Governments ( SANDAG) notified NCTD that the construction schedule for the additional bridge foundation improvements would be extended from January 2017 to May 2017. Due to challenges implementing the additional foundation improvements, variations in the improvement methods were required and the resulting rate of progress was less than estimated. These challenges also required the contractor to increase bridge work hours in October, which led to expending additional railroad bridge supervision service hours included in Task Order No. 5. Jacobs Task Order No. 5 will require Amendment No. 1 to increase the task order value by $190,391 for a total not-to-exceed amount of $362,739 for railroad bridge supervision and inspection services through May 2017. Accordingly, Board action is required as the Amendment value exceeds the Executive Director’s authority for contract amendment per Board Policy No. 19. January 19, 2017 Board Meeting Staff Report No.: SR-17-01-008 Staff recommends that the Board authorize the Executive Director to execute Amendment No. 1 to Task Order No. 5 to Jacobs Engineering Group, Inc. under Contract No. 16061 in an amount not-to-exceed $190,391, for a total Task Order amount of $ 362,739, to continue railroad bridge supervision and inspection services for the Los Peñasquitos Lagoon Bridge Replacement Project associated with the additional foundation improvements at all four bridge locations (Bridges 246.1, 246.9, 247.1, and 247.7). ATTACHMENT: FISCAL IMPACT: COMMITTEE REVIEW: STAFF CONTACT: None The fiscal impact of this proposed contract action is $190,391, which is being funded with non-federal, local operating monies identified in project 514016. The project has a balance of $190,391 for this scope of work. If the Board approves this proposed contract action, the balance in project 514016 for this scope of work will be $0. The additional project expenses in Amendment No. 1 to Task Order No. 5 will be segregated and recorded as reimbursable expenses sought to be recouped through the resolution process for the Los Peñasquitos Lagoon Bridge Replacements Project. None Andrew Bohnert, Chief Development Officer E-mail: abohnert@nctd.org Phone: 760-966-6683 January 19, 2017 Board Meeting Staff Report No.: SR-17-01-008 Agenda Item # 9 AWARD CONTRACT NO. 17030 TO FELLFAB CORPORATION FOR COASTER SEAT CUSHION REPLACEMENT Time Sensitive Consent X STAFF RECOMMENDATION: Award Contract No. 17030 to FELLFAB Corporation for COASTER seat cushion replacement in an amount not-to-exceed $130,232, upon review and approval of General Counsel. BACKGROUND INFORMATION: The North County Transit District (NCTD) currently operates 18 coach cars and 10 cab cars on the COASTER line. Currently, there are 14 coach cars and 8 cab cars that have undergone overhauls in recent years. NCTD is responsible to refurbish the remaining two (2) cab cars and four (4) coach cars. NCTD advertised an Invitation for Bid (IFB) for the replacement of the COASTER seat cushions and covers on October 28, 2016 for the replacement of the seats for all six (6) vehicles that NCTD is responsible for refurbishing. NCTD received 2 sealed bids on December 19, 2016. FELLFAB Corporation was determined to be the lowest bid of $130,231.45. After a review of the bid, it was determined that the bid was responsive, the bidder was responsible and the price was determined to be fair and reasonable. A notice of intent to award was published on December 19, 2016, and no protests were received. Should the Board authorize this award, it is expected that the seat cushion replacement project will be complete by August 31, 2017. Staff recommends that the Board of Directors award Contract No. 17030 to FELLFAB Corporation for COASTER seat cushion replacement in an amount notto-exceed $130,232, upon review and approval of General Counsel. ATTACHMENT: FISCAL IMPACT: COMMITTEE REVIEW: STAFF CONTACT: None The fiscal impact of this proposed contract action is $ 130,232. This project is funded using Federal Transit Administration money, with the required match met with Transportation Development Act local funds. A total of $510,000 has been budgeted for this scope of work in Project No. 415003. Of the total amount budgeted, $ 223,896 has been encumbered, leaving an available balance of 286,104 before consideration of this item. If the proposed contract action is approved, the available balance will be reduced to $155,872. None Don Filippi, Chief Operations Officer – Rail Email: dfilippi@nctd.org Phone: 760-966-6773 January 19, 2017 Board Meeting Staff Report No.: SR-17-01-009 Agenda Item # 10 ADOPT THE 2017 LEGISLATIVE AGENDA Time Sensitive STAFF RECOMMENDATION: BACKGROUND INFORMATION: Consent X Adopt the 2017 Legislative Agenda. Annually, the Intergovernmental Affairs Officer presents the proposed annual legislative agenda to the North County Transit District (NCTD) Board of Directors for approval. The NCTD Board of Directors adopts a legislative agenda to establish State and Federal legislative goals and priorities for the next calendar year. The legislative program is dynamic and reflects the best information available at the time of development. Accordingly, the agenda is a living document that provides staff direction and may be modified at any time by Board approval. Attached is the proposed 2017 Legislative Agenda for Board consideration. Staff recommends that the Board of Directors adopt the proposed 2017 Legislative Agenda. ATTACHMENT: FISCAL IMPACT: COMMITTEE REVIEW: STAFF CONTACT: 10A – 2017 Legislative Agenda This staff report has no fiscal impact. None Bridget Hennessey, Intergovernmental Affairs Officer E-mail: bhennessey@nctd.org Phone: 760-966-6651 January 19, 2017, Board Meeting Staff Report No.: SR-17-01-010 ATTACHMENT 10A Date: January 19, 2017 To: NCTD Board of Directors From: Bridget Hennessey, Intergovernmental Affairs Officer CC: Matthew O. Tucker, Executive Director Re: 2017 Legislative Agenda Annually, the North County Transit District ( NCTD) Board of Directors adopts a legislative agenda to establish goals and priorities for the next calendar year. The legislative program is dynamic and reflects the best information available at the time. Accordingly, the agenda is a living document that provides direction and may be modified at any time by Board approval. The 2017 proposed legislative agenda is summarized below: Jurisdiction Goal Board Position Federal/State Pursue discretionary funding for capital projects, including: Camp Pendleton & Convention Center Stations Transit Oriented Development Projects in Oceanside, Solana Beach and Escondido Railroad Quality of Life Enhancements such as pedestrian safety structures and noise management systems Replacement locomotives and rail cars Zero Emissions Bus and related facility enhancements Oppose legislation that includes unfunded mandates for NCTD Protect transit funding by opposing proposals or legislation that supports transfers or rescissions from dedicated transportation funding Work with federal, state, and local partners to implement the surface transportation authorization. Support legislation and policies that will generate new revenue for transit programs, projects, and operating costs Support increased funding for transit programs Sponsor Support legislation and/or policy to streamline the California Environmental Quality Act for public transit improvements Along with our regional partners, pursue legislation or policy to enable the use of freeway shoulders as transit lanes on major corridors in the San Diego region Protect legislation that gives transit agencies the authority to operate buses with bike racks that exceed 40-foot limitation on bus length Support Federal/State Federal/State Federal/State/ Local Federal/State/ Local Federal/State State State State Support Support Support Support Support Sponsor Support Agenda Item # 11 RATIFY PURCHASE ORDER NO. 31910-OP AWARDED TO PATRIOT ENVIRONMENTAL SERVICES AND PURCHASE ORDER NO. 32930OP AWARDED TO OTIS ELEVATOR COMPANY FOR AN EXIGENT CLEANUP AND INSPECTION OF THE ELEVATOR AT SOLANA BEACH COASTER STATION Time Sensitive STAFF RECOMMENDATION: Consent x Staff recommends the Board: 1) Ratify Purchase Order No. 31910-OP awarded to Patriot Environmental Services for an exigent cleanup of the elevator at Solana Beach COASTER station for $4,970.75; and 2) Ratify Purchase Order No. 32930-OP awarded to OTIS Elevator Company for an exigent inspection of the elevator at Solana Beach COASTER station for 2,500.00. BACKGROUND INFORMATION: The elevator serving the west platform at the Solana Beach COASTER station was shut down on December 28, 2016, due to heavy flooding following rain events. Following reports of flooding and inspection by staff, it was discovered that the elevator pit was flooded to the base of the cab doors and that oil was visible on the surface of the water in the elevator pit. The elevators at the Solana Beach station provide critical ADA-compliant access to the train platforms. The west platform does not have an ADA-compliant ramp as an alternate means of access similar to the east platform. The elevator pit flooding required pumping and disposal of the water/oil content by an environmental services firm, and inspection by a qualified elevator technician before the elevator could be returned to service. In accordance with the North County Transit District (NCTD) Board of Directors Board) Policy No. 19, the Executive Director has the authority to execute a contract without competitive bidding when it is determined by the Executive Director that either an emergency or an exigent circumstance exists. On December 29, 2016, the Executive Director declared the existence of a public exigency, and authorized staff to advance procurement actions to obtain the services necessary to mitigate the exigent circumstance. Although the total dollar value for the cleanup and inspection is within the Executive Director’s authority pursuant to Board Policy No. 19 (less than $100,000), the Executive Director is required to notify the Board of Directors at the next public meeting of any contract action where the competitive bidding process was waived due to exigent or emergency circumstances and seek ratification. Staff recommends the Board: 1) Ratify Purchase Order No. 31910-OP awarded to Patriot Environmental Services for an exigent cleanup of the elevator at Solana Beach COASTER station for $4,970.75; and January 19, 2017 Board Meeting Staff Report No.: SR-17-01-011 2) Ratify Purchase Order No. 32930-OP awarded to OTIS Elevator Company for an exigent inspection of the elevator at Solana Beach COASTER station for $2,500.00. ATTACHMENT: FISCAL IMPACT: COMMITTEE REVIEW: STAFF CONTACT: None The fiscal impact of the recommended procurement action is $7,471.00. The procurement action is funded in operating accounts 220.503314/6.681 with nonfederal monies, which has a combined FY17 budget of $181,665. None Andrew Bohnert, Chief Development Officer E-mail: abohnert@nctd.org Phone: 760-966-6683 January 19, 2017 Board Meeting Staff Report No.: SR-17-01-011 Agenda Item # 12 RATIFY PURCHASE ORDER NOS. 32939-OP AND 32938-OP AWARDED TO GLOBAL POWER GROUP FOR EXIGENT REPAIRS TO THE GENERATORS AT GENERAL ADMINISTRATIVE OFFICES AND THE SPRINTER OPERATIONS FACILITY Time Sensitive STAFF RECOMMENDATION: Consent x Staff recommends the Board: 1) Ratify Purchase Order No. 32939-OP awarded to Global Power Group for exigent repairs to the generator at the General Administrative Offices in an amount not-to-exceed $3,253.86; and 2) Ratify Purchase Order No. 32938-OP awarded to Global Power Group for exigent repairs to the generator at the SPRINTER Operations Facility in an amount not-to-exceed $7,704. BACKGROUND INFORMATION: The North County Transit District ( NCTD) owns facilities throughout its service area which are essential to the operations of its transit services. These facilities include both office buildings and operations and maintenance buildings, which must be kept in a constant state of good repair, including all supporting systems such as electric, plumbing, etc. On December 26, 2016, an electrical malfunction occurred which resulted in irreparable damage to a circuit board in the transfer switch at the General Administrative Offices (GAO). In the event of a power outage, the generator at GAO would not provide the emergency power needed for servers and other services supporting transit operations. The repairs were initiated on December 27, 2016. On November 2, 2016, a battery charger on the general at the Sprinter Operations Facility (SOF) was replaced following a routine building inspection. Unfortunately, additional issues with the generator were discovered immediately thereafter. Through extensive additional testing and inspections over the ensuing weeks, it was determined that repairs would be necessary to correct problems with the engine starter, fuel pump, and control panel. A portable generator was dispatched to provide limited support for the servicing area, however, in the event of a power outage, the generator at SOF would not provide the emergency power needed for SPRINTER servicing and repairs. The repairs were initiated on December 29, 2016. In accordance with North County Transit District ( NCTD) Board of Directors Board) Policy No. 19, the Executive Director has the authority to execute a contract without competitive bidding when it is determined by the Executive Director that either an emergency or an exigent circumstance exists. On December 27, 2016, a memorandum was sent to the Executive Director and a briefing was conducted regarding the conditions at the two facilities. Verbal declaration of public exigency and authorization to complete the repairs was given January 19, 2017 Board Meeting Staff Report No.: SR-17-01-012 by the Executive Director on that same date. On January 3, 2017, the verbal declaration was memorialized in writing. Although the total dollar value for the repairs is within the Executive Director’s authority pursuant to Board Policy No. 19 (less than $100,000), the Executive Director is required to notify the Board of Directors at the next public meeting of any contract action where the competitive bidding process was waived due to exigent or emergency circumstances and seek ratification. Staff recommends that the Board: 1) Ratify Purchase Order No. 32939-OP awarded to Global Power Group for exigent repairs to the generator at the General Administrative Offices for 3,253.86; and 2) Ratify Purchase Order No. 32938-OP awarded to Global Power Group for exigent repairs to the generator at the SPRINTER Operations Facility for 7,704.00. ATTACHMENT: FISCAL IMPACT: COMMITTEE REVIEW: STAFF CONTACT: None The fiscal impact of the recommended procurement action is $ 10,958. The procurement action is funded in operating accounts 220.503314/6.681 with nonfederal monies, which has a combined FY17 budget of $181,665. None Andrew Bohnert, Chief Development Officer E-mail: abohnert@nctd.org Phone: 760-966-6683 January 19, 2017 Board Meeting Staff Report No.: SR-17-01-012 Agenda Item # 13 ELECTION OF BOARD CHAIR AND VICE-CHAIR FOR CALENDAR YEAR 2017 Time Sensitive X Consent NOMINATING COMMITTEE RECOMMENDATION: Elect Rebecca Jones as Board Chair and John Aguilera as Vice-Chair for Calendar Year 2017. BACKGROUND INFORMATION: In accordance with California Public Utilities Code § 125100, the North County Transit District (NCTD) Board of Directors (Board) must elect a Chair and ViceChair in January of each year. At the November 17, 2016 Board meeting, the Board selected a Nominating Committee comprised of: 1) Bill Horn, Chair of Nominating Committee 2) Tony Kranz 3) Ed Gallo At the December 15, 2016 Board meeting, the Nominating Committee nominated Rebecca Jones for Board Chair and John Aguilera for Vice-Chair for calendar year 2017. The Nominating Committee requests that the Board elect Rebecca Jones as Board Chair and John Aguilera as Vice-Chair for Calendar Year 2017. ATTACHMENT: FISCAL IMPACT: COMMITTEE REVIEW: STAFF CONTACT: None This staff report has no fiscal impact. None Anthony Flores, Clerk of the Board E-mail: aflores@nctd.org Phone: 760-966-6553 January 19, 2017 Board Meeting Staff Report No.: SR-17-01-013 Agenda Item # 14 APPROVE NORTH COUNTY TRANSIT DISTRICT BOARD AND EXTERNAL COMMITTEE APPOINTMENTS FOR CALENDAR YEAR 2017 Time Sensitive X Consent BOARD CHAIR RECOMMENDATION: Approve the Board Chair’s recommendations for Internal and External Committee and Board Appointments for Calendar Year 2017. BACKGROUND INFORMATION: The North County Transit District ( NCTD) Board of Directors’ ( Board) Chair provides recommendations to the NCTD Board of Directors for internal and external committee and Board appointments for calendar year 2017. Attachment 14A provides the recommended internal and external appointments and Attachment 14B provides the external committee schedule. The Board approved the 2017 Board meeting schedule at the December 15, 2016 Board meeting. Internal Committees: At the December 15, 2016 Board meeting, Board members received a 2017 Committee Preference memo and provided their requested choice of assignment. SANDAG Board: The San Diego Association of Governments (SANDAG) Board includes NCTD as an advisory member. The Board meets twice a month on the second and fourth Friday. The first meeting of the month is from 10 a.m. to noon and is focused on policy matters. The second meeting of the month is a business meeting and meets from 9:00 a.m. to noon. SANDAG Transportation Committee: NCTD has a seat as a voting member on this committee. Meetings are scheduled for the first and third Friday of each month from 9:00 a.m. to noon. SANDAG Regional Planning Committee: This committee is responsible for the development of the Regional Comprehensive Plan (RCP), and NCTD is included as an advisory member. Meetings are scheduled for the first Friday of each month from noon to 2:00 p.m. LOSSAN: The Los Angeles-San Diego-San Luis Obispo (LOSSAN) Rail Corridor Agency Joint Powers Board meets once a month on varying days and times to further the development of rail service in the coastal corridor from San Diego to San Luis Obispo. Meetings are usually held in Los Angeles at L.A. Metro from 12:30 p.m. to 2:30 p.m. Joint Committee on Regional Transit (JCRT): This committee meets on an as– needed basis to provide policy guidance on transit operating matters that are of concern to NCTD and the San Diego Metropolitan Transit System (MTS) and to review the implementation of the Transition Plans for agency consolidation. January 19, 2017 Board Meeting Staff Report No.: SR-17-01-014 The Board Chair recommends the Board approve the Committee appointments as outlined in Attachment 14A. ATTACHMENT: FISCAL IMPACT: COMMITTEE REVIEW: STAFF CONTACT: 14A – Internal and External Committee Appointments 14B – External Committee Schedule This staff report has no fiscal impact. None Anthony Flores, Clerk of the Board E-mail: aflores@nctd.org Phone: 760-966-6553 January 19, 2017 Board Meeting Staff Report No.: SR-17-01-014 ATTACHMENT 14A NORTH COUNTY TRANSIT DISTRICT BOARD 2017 INTERNAL COMMITTEE AND EXTERNAL APPOINTMENTS 2016 BOARD MEMBER APPOINTMENTS PROPOSED CHANGES EXECUTIVE COMMITTEE Committee Chair Committee Vice-Chair Vice-Chair of PAF Committee Chair of MSPBD Committee Mark Packard Rebecca Jones John Aguilera Ed Gallo Rebecca Jones John Aguilera TBD TBD PERFORMANCE, ADMINISTRATION AND FINANCE COMMITTEE (PAF) Committee Chair Member Member Member Rebecca Jones John Aguilera Tony Kranz Bill Horn John Aguilera Mark Packard Bill Horn Tony Kranz MARKETING, SERVICE PLANNING AND BUSINESS DEVELOPMENT COMMITTEE (MSPBD) Member Member Member Member Ed Gallo Chuck Lowery Mike Nichols Don Mosier Ed Gallo Chuck Lowery Mike Nichols Dave Druker Mark Packard Ed Gallo Mike Nichols Rebecca Jones Ed Gallo Mike Nichols SANDAG TRANSPORTATION (Voting Member) Member 1st Alternate 2nd Alternate Rebecca Jones Bill Horn John Aguilera John Aguilera Bill Horn Mark Packard SANDAG REGIONAL PLANNING COMMITTEE (Advisory Member) Member Alternate Don Mosier Chuck Lowery Chuck Lowery Dave Druker Tony Kranz Ed Gallo Tony Kranz Ed Gallo Bill Horn Mark Packard Don Mosier Rebecca Jones Bill Horn Mark Packard Dave Druker Rebecca Jones COMMITTEE INTERNAL COMMITTEES EXTERNAL COMMITTEES SANDAG BOARD OF DIRECTORS (Advisory Member) Member 1st Alternate 2nd Alternate LOSSAN CORRIDOR BOARD OF DIRECTORS Member Alternate JOINT COMMITTEE ON REGIONAL TRANSIT (JCRT) Member Member Member Alternate ATTACHMENT 14B 2017 External Committee Schedule SANDAG Board of Directors Advisory Member) Meetings at 10 AM and 9 AM respectively, unless otherwise indicated SANDAG Transportation Committee Voting Member) Meetings at 9 AM, unless otherwise indicated SANDAG Regional Planning Committee Advisory Member) Meetings at Noon, unless otherwise indicated LOSSAN Corridor Board of Directors Joint Committee on Regional Transit JCRT) Rebecca Jones John Aguilera Chuck Lowery Tony Kranz Bill Horn 1st Alt - Ed Gallo 1st Alt - Bill Horn Alt - Dave Druker Alt - Ed Gallo Mark Packard 2nd Alt - Mike Nichols 2nd Alt - Mark Packard Dave Druker Alt - Rebecca Jones Meeting Time: 10 AM – Noon and 9 AM – Noon Meeting Time: 9 AM – Noon January 13 January 6 January 27 January 20 February 8-10, Board Retreat February 3 February 24 February 17 March 10 March 3 March 24 March 17 April 14 April 7 April 28 April 21 May 12 May 5 May 26 May 19 Meeting Time: 12 – 2 PM Meeting Time: 12:30 – 2:30 PM at LA Metro unless otherwise indicated January 6 January 30 February 3 February 22 March 3 March 20 April 7 April 17 May 5 Scheduled as needed SANDAG Board of Directors Advisory Member) Meetings at 10 AM and 9 AM respectively, unless otherwise indicated SANDAG Transportation Committee Voting Member) Meetings at 9 AM, unless otherwise indicated June 9 June 2 June 23 June 16 July 14 July 7 July 28 July 21 August 11 August 4 August 25 August 18 September 8 September 1 September 22 September 15 October 13 October 6 October 27 October 20 November 3 9-10 AM) November 17 December 1 December 15 SANDAG Regional Planning Committee Advisory Member) Meetings at Noon, unless otherwise indicated LOSSAN Corridor Board of Directors June 2 June 19 July 7 July 17 August 4 August 21 September 1 September 18 October 6 November 3 November 3 11 AM – 1 PM) 1:15 PM – 3 PM) December 8 December 1 November 29 Joint Committee on Regional Transit JCRT) Agenda Item # 15 SET PUBLIC HEARING FOR FEBRUARY 16, 2017 AND AUTHORIZE STAFF TO PUBLISH NOTICE FOR CONSIDERATION OF ADOPTION OF PROPOSED AMENDED FY2017 OPERATING BUDGET AND FY2017–FY2021 CAPITAL IMPROVEMENT PROGRAM AND RELEASE BUDGET DOCUMENTS TO THE PUBLIC Time Sensitive STAFF RECOMMENDATION: X Consent Staff recommends that the Board: 1) Receive a status update and information regarding a proposed amendment to the adopted FY2017 Operating Budget and FY2017FY2021 Capital Improvement Program; and 2) Set a public hearing for February 16, 2017 to consider adoption of proposed Amended FY2017 Operating Budget and FY2017-FY2021 Capital Improvement Program. 3) Authorize staff to execute the following actions related to the Proposed Amended FY2017 Operating Budget and FY2017-FY2021 Capital Improvement Program in accordance with State of California Public Utilities Code §125106: a. Release the Proposed Amended FY2017 Operating Budget and FY2017-FY2021 Capital Improvement Program documents for public review and comment no later than February 1, 2017; and b. Receive public comment related to the Proposed Amended FY2017 Operating Budget and FY2017-FY2021 Capital Improvement Program. BACKGROUND INFORMATION: On June 16, 2016, the North County Transit District (District) Board of Directors Board) adopted the FY2017 Operating Budget and FY2017-2021 Capital Improvement Program (FY2017 Adopted Budget). As is standard District practice, the FY2017 Adopted Budget was integrated into the District enterprise accounting system, and budget-to-actual performance is being monitored on an ongoing basis. Under District Board Policy No. 17 – Budget Development (Board Policy No. 17), adjustments to a Board-adopted budget which do not change the total appropriated budget are permitted without Board action, with the exception of District fuel budget transfers or additional capital outlays. Per Board Policy No. 17, these two exceptions, as well as adjustments increasing or decreasing the total appropriated budget, are amendments that require formal Board action by the Board. District staff have concluded a comprehensive analysis of budget-to-actual performance for the first six ( 6) months of FY2017, and have substantially completed the annual fiscal audit which certified FY2016 actual expenditures and carryover revenues. Through these two critical actions, staff identified a number January 19, 2017 Board Meeting Staff Report No.: SR-17-01-015 of actual and anticipated changes to revenue and expenditure line items that have occurred since the FY2017 Adopted Budget was approved. As the cumulative value of these changes exceeds District staff authority for budget adjustments under Board Policy No. 17, staff is submitting a proposed amendment to the FY2017 Adopted Budget ( Proposed Amendment) for Board consideration and adoption. Following are key details related to the Proposed Amendment: Budget. The Proposed Amendment is $108.2 million, a net increase of $3.4 million from the $104.8 million adopted in the FY2017 Adopted Budget and 8.2 million from the FY2016 actual of $100.0 million. Service Implementation Plan (SIP). The Proposed Amendment does not present any changes to the levels of service for certain key performance indicators ( KPIs), as pledged in the FY2017 Approved Budget. Budget-toactual performance of these SIP KPIs – revenue miles, total miles, revenue hours, and total hours – indicate these targets will be met by FY2017 close. Ridership. A reduction in ridership across all District modes, a trend first observed in the second half of FY2015, has persisted into FY2017. Consequently, the Proposed Amendment reduces the FY2017 ridership forecast by an average of 5.3% from FY2016 actual ridership across all modes. Passenger Fares. As with the FY2017 Approved Budget, the Proposed Amendment does not project any fare increases through FY2017. The District has not raised passenger fares since July 1, 2009. Revenues. The reduction in ridership noted above triggers a corresponding reduction in Passenger Fare revenue by approximately $1.1 million from the FY2017 Approved Budget, which is included in the Proposed Budget. This systemic decrease has been offset in FY2017 by $605,583 in reimbursements from re-negotiated shared use agreements, as well as $3.6 million in one-time carryover funds from previously programmed but not spent local monies. This produces a net increase in revenues of $3.4 million. Purchased Transportation. The Proposed Amendment allows for a not-toexceed $ 2.1 million to support mobilization activities for the new Combined Fixed Route Bus, ADA Paratransit, and Specialized Transportation Operations and Maintenance contract. These expenditures are offset by cost savings realized through a restructuring of the rail contract insurance requirements. Professional Services. The Proposed Amendment includes a net increase in Professional Services, primarily due to an estimated increase of $989,093 for preventive maintenance expense, as detailed to the Board on October 20, 2016. Additional increases in Professional Services includes a one-time charge of $ 146,626 for the District share of the Regional Communication System infrastructure upgrade, and an allowance for potential additional legal support. The net increase in Professional Services is forecast as $1.4 million in the Proposed Amendment. January 19, 2017 Board Meeting Staff Report No.: SR-17-01-015 Staffing Costs, including Benefits. The Proposed Amendment adds three 3.0) full-time equivalent (FTE) positions to the current District staff of 161.5 FTEs, for an adjusted total of 164.5 FTEs. The new FTEs include a Manager, Right of Way position, who will support the extensive District construction portfolio being delivered by both in-house staff and by the San Diego Association of Governments (SANDAG). Also included are two (2) Building Engineer positions, who will perform scope of work previously included in the First Transit facility maintenance contract. Fuel. The Proposed Amendment does not recommend any change to the forecast pricing for diesel, gasoline and natural gas, as the fuel rates are based on a two-year contract. There are no changes to the following documents since the FY2017 Approved Budget and, as such, those documents are not included as part of the Proposed Amendment: Employee Classification and Compensation Schedule, Cost Recovery Fee Schedule, Disadvantaged Business Enterprise Goal, which remains at 4.6%, and Service Implementation Plan, as noted above. District staff will be presenting the Proposed Amendment in detail at the Performance, Administration, and Finance Committee on February 2, 2017. Staff recommends the Board: 1) Receive a status update and information regarding a proposed amendment to the Adopted FY2017 Operating Budget and FY2017FY2021 Capital Improvement Program; and 2) Set a public hearing for February 16, 2017 to consider adoption of Amended FY2017 Operating Budget and FY2017-FY2021 Capital Improvement Program 3) Authorize staff to execute the following actions related to the Proposed Amended FY2017 Operating Budget and FY2017-FY2021 Capital Improvement Program in accordance with State of California Public Utilities Code §125106: a. Release the Proposed Amended FY2017 Operating Budget and FY2017-FY2021 Capital Improvement Program documents for public review and comment no later than February 1, 2017; and b. Receive public comment related to the Proposed Amended FY2017 Operating Budget and FY2017-FY2021 Capital Improvement Program. After Board approval to release the Proposed Amended document, copies will be made available no later than no later than February 1, 2017 at the Service Counter at 810 Mission Avenue, Oceanside, between the hours of 8:00 a.m. and 5:00 p.m. weekdays, and at the Customer Service Offices at the transit centers in Oceanside, Escondido and Vista, as well as on the internet at www.gonctd.com. January 19, 2017 Board Meeting Staff Report No.: SR-17-01-015 ATTACHMENT: FISCAL IMPACT: COMMITTEE REVIEW: STAFF CONTACT: 15A – Proposed Amended FY2017 Operating Budget and FY2017-FY2021 Capital Improvement Program This staff report has no fiscal impact. None Luz Cofresí-Howe, Chief Financial Officer E-mail: lcofresihowe@nctd.org Phone: 760-967-2829 January 19, 2017 Board Meeting Staff Report No.: SR-17-01-015 ATTACHMENT 15A PROPOSED AMENDED OPERATING BUDGET AND CAPITAL IMPROVEMENT PROGRAM FOR THE FISCAL YEAR ENDING JUNE 30, 2017 810 MISSION AVENUE OCEANSIDE, CA 92054-2825 MAIN: (760) 966-6500 FAX: ( 760) 967-2001 WWW.GONCTD. COM FY2017 Proposed Amended Operating Budget and FY2017-2022 Capital Improvement Program TABLE OF CONTENTS Message from the Executive Director ........................................................................................................................ 1 Proposed Amendment to the FY2017 Adopted Operating Budget ...........................................................................3 Key Assumptions and Budget-to-Actual Performance to Date .............................................................................. 3 Ridership ............................................................................................................................................................. 3 Table 1. FY2017 Adopted Budget – Ridership Forecast .......................................................................... 3 Table 2. FY2017 Proposed Amendment – Ridership Forecast ................................................................ 3 Table 3. Total Ridership – FY2015 to FY2017 Year-to-Year Comparison ................................................4 Figure 1. FY2007-FY2016 Actual, FY2017 Proposed Boardings ..............................................................4 Service Implementation Plan ............................................................................................................................. 4 Table 4. FY2017 Service Implementation Plan – Key Performance Indicators ....................................... 5 Operating Revenues ........................................................................................................................................... 5 Table 5. FY2017 Approved Budget – Operating Revenues Forecast .......................................................5 Table 6. FY2017 Proposed Amendment – Operating Revenues Forecast ...............................................5 Grant Revenues .................................................................................................................................................. 6 Table 7. FY2017 Approved Budget – Grant Revenues Assumptions .......................................................6 Figure 2. FY2017 Adopted Budget – Sources of Grant Funds ................................................................. 6 Figure 3. FY2017 Adopted Budget – Uses of Grant Funds ...................................................................... 6 Federal Funding Update ................................................................................................................................. 7 State Funding Update ..................................................................................................................................... 7 Local Funding Update ..................................................................................................................................... 7 FY2017 Sales Tax Receipts .......................................................................................................................... 7 Prior Period Carryovers ..............................................................................................................................7 Table 8. FY2017 Proposed Amendment – Grant Revenues Forecast ......................................................8 Figure 4. FY2017 Proposed Amendment – Sources of Grant Funds........................................................ 8 Figure 5. FY2017 Proposed Amendment – Uses of Grant Funds ............................................................ 8 Operating Expenditures......................................................................................................................................8 Table 9. FY2017 Approved Budget – Operating Expenditures Forecast ................................................. 9 Table 10. FY2017 Proposed Amendment – Summary Changes in Operating Expenditure Forecast ......9 Table 11. FY2017 Proposed Amendment – Detailed Changes in Operating Expenditures Forecast ... 10 Salaries, Wages & Fringe Benefits ...............................................................................................................10 Professional Services ................................................................................................................................... 11 Purchased Transportation Services ............................................................................................................. 11 Miscellaneous Expenses .............................................................................................................................. 11 PAGE 1 FY2017 Proposed Amended Operating Budget and FY2017-2022 Capital Improvement Program Contingency ................................................................................................................................................. 11 Proposed Amendment to FY2017-2021 Adopted Capital Improvement Program .................................................12 Capital Projects ....................................................................................................................................................12 MP 209.2 Turnout Replacement .....................................................................................................................12 Positive Train Control ...................................................................................................................................... 12 Table 12. FY2017 Proposed Amendment – Summary Project Schedules............................................. 12 Key Assumptions Summary ..................................................................................................................................... 13 Key Dates ................................................................................................................................................................. 14 Table 14. FY2017 Proposed Amendment — Key Dates ....................................................................... 14 PAGE 2 FY2017 Proposed Amended Operating Budget and FY2017-2022 Capital Improvement Program MESSAGE FROM THE EXECUTIVE DIRECTOR Members of the Board of Directors: January 19, 2017 On June 16, 2016, the North County Transit District (District) Board of Directors (Board) adopted the FY2017 Operating Budget and FY2017-2021 Capital Improvement Program ( FY2017 Adopted Budget). As is standard District practice, the FY2017 Adopted Budget was integrated into the District enterprise accounting system, and budget-to-actual performance is being monitored on an ongoing basis. Under District Board Policy No. 17 – Budget Development (Board Policy No. 17), adjustments to a Board-adopted budget which do not change the total appropriated budget are permitted without Board action, with the exception of District fuel budget transfers or additional capital outlays. Per Board Policy No. 17, these two exceptions, as well as adjustments increasing or decreasing the total appropriated budget, are amendments that require formal action by the Board. District staff have concluded a comprehensive analysis of budget-to-actual performance for the first six (6) months of FY2017, and have substantially completed the annual fiscal audit which certified FY2016 actual expenditures and carryover revenues. Through these two critical actions, staff identified a number of actual and anticipated changes to revenue and expenditure line items that have occurred since the FY2017 Adopted Budget was approved. As the cumulative value of these changes exceeds District staff authority for budget adjustments under Board Policy No. 17, a proposed amendment to the FY2017 Adopted Budget (Proposed Amendment) is being submitted for Board consideration and adoption. The Proposed Amendment reflects actual revenues and expenditures incurred through December 31, 2016, recognizes grants and other funds programmed subsequent to the original approval of the annual budget, adjusts for increased expenditures, lowers passenger revenue based on the most recent trends, and increases the Capital Improvement Program budget to support additional projects. There are certain line items within the Proposed Amendment for which the FY2017 operating budget impacts were not fully known at the time of budget adoption, such as the new Combined Fixed Route Bus, ADA Paratransit, and Specialized Transportation Operations and Maintenance contract, to support the District’s proactive approach to attaining and maintaining a state of good repair for all capital assets under District control. The Proposed Amendment adjusts for these items, contemplates changes in budgetary trends identified since the adoption of the annual budget, and presents the Board with the opportunity to revise revenue projections and expenditure forecasts to reflect new information or requirements. The District has received its full Federal appropriations for the fiscal year, and the San Diego Association of Governments ( SANDAG) recently signaled that FY2017 sales tax forecasts are expected to fulfill the most conservative revenue scenario, which was the assumption used for the District FY2017 Adopted Budget. However, the lower farebox recovery rate connected to a declining ridership trend, which began in the second half of FY2015 and continued through FY2016 into FY2017, has placed downward pressure on District revenues. In FY2017, this pressure has been offset by one-time, prior period sales tax revenues programmed but not spent, as well as baseline increases to dispatching and maintenance reimbursements under the re-negotiated Shared Use Agreements with Amtrak and BNSF Railway. One-time expenditure increases in FY2017 include mobilization costs forecast for the combined bus operations and maintenance contract noted above, the District share of an upgrade to the Regional Communication System for Transit Enforcement, and reimbursements to the San Diego Sheriff’s Office for additional operations. These increased costs have been offset to some extent by the restructuring of indemnification and insurance provisions in the current rail operations and maintenance contract. Changes in recurring expenditures are concentrated in PAGE 1 FY2017 Proposed Amended Operating Budget and FY2017-2022 Capital Improvement Program professional services, reflecting the implementation of a new District Facilities and Equipment Maintenance Business Plan, introduced in concept to the Board on April 21, 2016 and presented in detail on October 20, 2016. In summary, the Proposed Amendment to the FY2017 Adopted Operating Budget is an approximate 3.2% net increase to the operating budget of $3,374,021, from $104,815,322 to $108,189,343. An adjustment to the FY2017-FY2021 Capital Improvement Program is also included in this Proposed Amendment. In November 2016, the State of California Department of Transportation ( Caltrans) notified the District that 1,000,000 in available Proposition 1B grant funds had been programmed to replace and upgrade the #24 turnout at Milepost 209.2 on the San Diego Subdivision. Caltrans also appropriated $70,662 in residual FY2014/ 2015 Proposition 1B funds to support the District’s Positive Train Control project. The Proposed Amendment to the FY2017-2021 Adopted Capital Improvement Program (CIP) to recognize these grant funds increases the budget by 1,070,662, from $99,856,816 to $100,927,478 over the five (5) year span of the CIP. As with the FY2017 Adopted Budget, the Proposed Amendment was prepared in compliance with generally accepted accounting principles ( GAAP), and results in a balanced operating budget for FY2017. The Proposed Amendment will be made available for public review and comment at least fifteen days prior to the public hearing planned for February 16, 2017, with Board final consideration and adoption anticipated the same day, after the public hearing is closed. The adopted Proposed Amendment will be forwarded to SANDAG as required. More detailed information on the assumptions used to develop the Proposed Amendment, as well as prior period comparisons, follow. The four (4) documents that accompanied the FY2017 Adopted Budget are not included in this transmittal, as no change to these documents is being recommended in the Proposed Amendment: Employee Classification and Compensation Schedule, Cost Recovery Fee Schedule, Disadvantaged Business Enterprise Goal, which is at 4.6%, and Service Implementation Plan, a component of the District short-range (10-year) transit and strategic business plan (Comprehensive Strategic Operating and Capital Improvement Program Plan) The District welcomes Board and public comment, and looks forward to Board adoption and implementation of the Proposed Amendment to the FY2017 Adopted Operating Budget and FY2017-2021 Capital Improvement Program budget. Respectfully submitted, Matthew O. Tucker Executive Director PAGE 2 FY2017 Proposed Amended Operating Budget and FY2017-2022 Capital Improvement Program PROPOSED AMENDMENT TO THE FY2017 ADOPTED OPERATING BUDGET The Proposed Amendment to the FY2017 Adopted Operating Budget increases the operating budget by 3,374,021, approximately 3.2%, from $104,815,322 to $108,189,343. KEY ASSUMPTIONS AND BUDGET- TO- ACTUAL PERFORMANCE TO DATE RIDERSHIP The FY2017 Adopted Budget forecast ridership at 12.2 million boardings, essentially flat compared to the FY2016 Projected Boardings at the time (Table 1). TABLE 1. FY2017 ADOPTED BUDGET – RIDERSHIP FORECAST Increase/( Decrease) Mode BREEZE LIFT FLEX COASTER SPRINTER Total Increase/( Decrease) FY2017 Increase/( Decrease) FY2015 FY2016 FY2015 Actual to FY2016 FY2015 Actual to Adopted FY2016 Projected to Actual Budget FY2016 Budget Projected FY2016 Projected Budget FY2017 Adopted 8,018,531 8,458,085 5.5% 7,670,091 ( 4.3%) 7,631,740 ( 0.5%) 184,785 189,997 2.8% 203,910 10.3% 219,203 7.5% 31,449 35,629 25,337 0.0% 1,641,525 1,740,850 1,572,952 0.0% 2,769,686 12,645,976 2,761,585 ( 13,186,146 13.3% 6.1% 0.3%) 4.3% 25,337 ( 19.4%) 1,572,952 ( 4.2%) 2,726,225 ( 1.6%) 2,724,087 ( 0.1%) 12,198,515 ( 3.5%) 12,173,319 ( 0.2%) A reduction in ridership across all District modes, a trend first observed in the second half of FY2015, has persisted into FY2017. Consequently, the Proposed Amendment revises the FY2017 ridership forecast down, applying the actual percentage change from FY2015 to FY2016, to FY2016 actual ridership to generate an FY2017 forecast. This does result in an overall decrease of 7.1% from the FY2017 Approved Budget (Table 2); however, the Proposed Amendment forecast reflects an overall 5.3%reduction from FY2016 actuals, which more closely reflects the yearover-year ridership trends shown in Table 3. TABLE 2. FY2017 PROPOSED AMENDMENT – RIDERSHIP FORECAST Increase/ Decrease Mode BREEZE LIFT FLEX Increase/( Decrease) FY2017 Increase/( Decrease) FY2017 FY2017 Adopted to FY2015 FY2016 FY2015 Actual to Adopted FY2016 Actual to Proposed FY2017 Proposed Actual Actual FY2016 Actual Budget FY2017 Adopted Amendment Amendment 8,018,531 184,785 7,547,119 ( 199,670 6.2%) 7.5% 1.1% 7,075,707 ( 219,203 8.9% 214,555 ( 25,337 1.8% 18,331 ( 7.9%) 2.2%) 31,449 24,890 ( COASTER 1,641,525 1,556,056 ( 5.5%) 1,572,952 1.1% 1,470,587 ( 7.0%) SPRINTER 2,769,686 2,677,929 ( 3.4%) 2,724,087 1.7% 2,586,172 ( 5.3%) 12,645,976 12,005,664 ( 5.3%) 12,173,319 1.4% 11,365,352 ( 7.1%) Total 26.4%) 7,631,740 38.2%) PAGE 3 FY2017 Proposed Amended Operating Budget and FY2017-2022 Capital Improvement Program TABLE 3. TOTAL RIDERSHIP – FY2015 TO FY2017 YEAR- TO- YEAR COMPARISON Boardings - All Modes 1.4 1.2 JunMil ionsActual 1.0 0.8 0.6 0.4 0.2 0.0 Jul Aug Sep Oct Nov FY2017 to Date Dec Jan Feb FY2016 Actual Mar Apr May FY2015 Actual The District last experienced total boardings (Figure 1) below 12 million in FY2011, at 11,450,347 across all modes. FIGURE 1. FY2007-FY2016 ACTUAL, FY2017 PROPOSED BOARDINGS Modes FY2017 Forecast 11,365,352 14.0 12.0 FY2017Mil ionsAll 10.0 8.0 6.0 4.0 2.0 FY2007 FY2008 FY2009 FY2010 BREEZE FY2011 FLEX LIFT FY2012 FY2013 COASTER FY2014 FY2015 FY2016 SPRINTER SERVICE IMPLEMENTATION PLAN The District Systemwide Operations Plan (Service Implementation Plan [ SIP]), the detailed five-year operations component of the FY2017 – FY2026 Comprehensive Strategic, Operating and Capital Plan (FY2017-FY2026 Comp Plan) adopted by the Board on June 16, 2016, contemplates FY2017 service levels across the BREEZE, COASTER, PAGE 4 FY2017 Proposed Amended Operating Budget and FY2017-2022 Capital Improvement Program SPRINTER and FLEX modes will be maintained at FY2016 levels. FY2017 LIFT service is expected to continue to increase by 7.5 percent, but a lower rate than FY2016 as demand reaches capacity during peak times. There have been no significant changes to the levels of service pledged in the District FY2017 SIP (Table 4) since the Board adopted the FY2017 Approved Budget and the FY2017-FY2026 Comp Plan. Also, budget-to-actual performance of these Key Performance Indicators (KPIs) through November 2016 signal these targets will be met by the close of FY2017. As such, the Proposed Amendment does not offer any changes to these KPIs. TABLE 4. FY2017 SERVICE IMPLEMENTATION PLAN – KEY PERFORMANCE INDICATORS FY2017 FY2018 FY2019 FY2020 FY2021 Revenue Miles 8,567,413 8,671,463 8,780,714 8,895,429 9,100,380 Total Miles 9,521,631 9,636,467 9,757,044 9,883,649 10,105,530 Revenue Hours 625,607 631,619 637,931 644,559 653,574 Total Hours 683,061 690,144 697,582 705,392 716,011 OPERATING REVENUES The FY2017 Adopted Budget estimated Passenger Fare revenue at $18.7 million (Table 5), based on essentially flat ridership from FY2016 and an average fare per rider of $1.54. TABLE 5. FY2017 APPROVED BUDGET – OPERATING REVENUES FORECAST FY 2017 FY 2014 Type Fare Revenue Auxiliary Revenue Non-transportation Revenue Total FY 2015 FY 2016 FY 2016 Adopted Actual Actual Budget Projected Budget 19,274,834 19,438,167 20,554,760 18,747,795 18,653,222 9,400,421 9,533,381 9,570,650 9,887,054 9,929,880 2,839,518 2,771,721 1,682,188 2,842,460 2,772,400 31,514,773 31,743,268 31,807,598 31,477,309 31,355,502 A reduction in ridership across all District modes, first observed in the second half of FY2015, has persisted into FY2017. Consequently, the Proposed Amendment revises the original FY2017 ridership forecast from essentially flat to down by 5.3% percent, which reduces forecast FY2017 Passenger Fare revenues by $1.1 million from the FY2017 Approved Budget. This persistent ridership decline and concomitant decrease in farebox revenues will reset the baseline revenue for both in future operating budgets. The negotiated update of the Shared Use Agreements with Amtrak and BNSF Railway produced a recurring increase of $605,583 in dispatching and maintenance reimbursements from the FY2017 Approved Budget, which will continue through FY2021. Summing the pluses and minuses of these revenue shifts forecasts net decrease of 1.7 million in operating revenues (Table 6) from the FY2017 Approved Budget. TABLE 6. FY2017 PROPOSED AMENDMENT – OPERATING REVENUES FORECAST FY 2014 FY 2015 FY 2016 FY 2016 FY 2017 FY2017 Adopted Proposed Revenue Type Actual Actual Budget Actual Fare Revenue 19,274,834 19,438,167 20,554,760 19,438,167 Auxiliary Revenue 9,400,421 9,533,381 9,570,650 9,502,115 9,929,880 Non-transportation Revenue 2,839,518 2,771,721 1,682,188 2,551,741 2,772,400 31,514,773 31,743,268 31,807,598 31,492,023 Total Budget 18,653,222 ( 31,355,502 ( Revisions Amendment 1,089,233 ) 17,563,989 605,583 10,535,463 2,772,400 483,650) 30,871,851 PAGE 5 FY2017 Proposed Amended Operating Budget and FY2017-2022 Capital Improvement Program GRANT REVENUES The District receives federal, state and local revenue to support both capital projects and ongoing operations. The San Diego Association of Governments (SANDAG), the regional Metropolitan Planning Organization for San Diego, is responsible for the apportionment of these various funds. Each year SANDAG provides an estimate for the upcoming fiscal year, as well as a projection for the next four fiscal years to allow the regional transit and local agencies to plan for capital projects and determine operating subsidies. The grant revenues assumed in Table 7 represented the low ( vs. mid-range) estimates as provided by SANDAG, and were the basis for the FY2017 Approved Budget forecast. TABLE 7. FY2017 APPROVED BUDGET – GRANT REVENUES ASSUMPTIONS Grant Funding Sources Section 5307 - Urbanized Area Formula $ FY2017 FY2018 FY2019 FY2020 FY2021 Five-Year Total 18,760,214 $ 19,135,418 $ 19,518,127 $ 19,908,489 $ 19,908,489 $ 411,177 411,177 411,177 411,177 411,177 2,055,885 Section 5337 - State Of Good Repair 11,045,921 11,602,261 11,834,306 12,070,992 12,070,992 58,624,472 Section 5339 - Bus And Bus Facilities 1,492,092 1,538,767 1,569,542 1,600,933 1,600,933 7,802,267 4,770,311 4,770,311 4,770,311 4,770,311 4,770,311 23,851,555 36,937,318 36,618,000 38,164,000 39,885,000 41,637,000 193,241,318 Section 5311 - Formula Grants For Rural Areas 97,230,737 Public Transportation Modernization, Improvement, and Service Enhancement Account Program (PTMISEA)1 Proposition 1B Transit Security Grant Program TSGP)1 860,494 STA - State Transit Assistance TDA 4 - Transportation Development Act 860,494 TDA 4.5 - Transportation Development Act Community Transit Service TransNet TransNet ADA Total Grant Funding Sources $ 1,938,402 1,922,000 2,003,000 2,093,000 2,185,000 10,141,402 12,510,000 13,078,000 13,620,000 14,189,000 14,785,000 68,182,000 332,000 345,000 360,000 375,000 391,000 89,057,929 $ 89,420,934 $ 92,250,463 $ 95,303,902 $ 97,759,902 $ 463,793,130 17,533,961 $ 18,049,368 $ 21,091,525 $ 17,848,930 $ 24,472,538 $ 98,996,322 1,803,000 Grant Expenditures Capital Improvement Program $ Positive Train Control1 860,494 860,494 Available for Operating 70,663,474 71,371,566 71,158,938 77,454,972 73,287,364 363,936,314 Total Grant Expenditures $ 89,057,929 $ 89,420,934 $ 92,250,463 $ 95,303,902 $ 97,759,902 $ 463,793,130 FIGURE 2. FY2017 ADOPTED BUDGET – SOURCES OF GRANT FUNDS Federal Capital 35.7% 21.5% Operating Local 58.9% FIGURE 3. FY2017 ADOPTED BUDGET – USES OF GRANT FUNDS State 78.5% 5.3% 1 These PTMISEA and TSGP funds are reserved for the District Positive Train Control capital project. PAGE 6 FY2017 Proposed Amended Operating Budget and FY2017-2022 Capital Improvement Program FEDERAL FUNDING UPDATE The Proposed Amendment does not recommend any changes to the FY2017 Approved Budget for Federal Grant revenues. The District already has been appropriated its full complement of Federal dollars to support the FY2017 Approved Budget. STATE FUNDING UPDATE Since the FY2017 Adopted Budget was approved, the State of California through its Department of Transportation Caltrans) has programmed $1,000,000 in Proposition 1B funding to support the replacement and upgrade of a turnout at Control Point ( CP) Songs ( Milepost 209.2). Caltrans also has appropriated $ 70,662 in residual FY2014/ 2015 Proposition 1B funds to support the Positive Train Control capital project. The Proposed Amendment to the FY2017-2021 Adopted Capital Improvement Program to recognize these additional grant funds increases the budget by $1,070,662, from $99,856,816 to $100,927,478 over the five (5) year span. LOCAL FUNDING UPDATE FY2017 Sales Tax Receipts In its annual January update regarding the regional Local Transportation Fund (LTF) sales tax receipts and fund balance, SANDAG indicated revenues received during the first six months of FY2017, while 2.0 percent higher than those for the same period last fiscal year, were lagging behind the originally projected 3.5 percent increase. However, SANDAG did not propose any changes to its FY2017 Transportation Development Act (TDA) sales tax estimate on which the District bases its TDA revenue budgetary forecast, as the current fiscal year is only halfway complete and the monthly receipts have shown some volatility. As such, the Proposed Amendment does not present any changes to the LTF forecast for FY2017. Prior Period Carryovers The substantial completion of the annual fiscal audit establishes carryover revenues from FY2016 financial activities at $2,677,765, reducing the FY2017 Approved Budget forecast of $2,796,347 by 4.2%. The in-depth review of budget-to-actual performance for the first six ( 6) months of FY2017 also included a complete reconciliation of prior period funds. The District reconciliation identified $3,953,253 in prior period Transportation Development Act ( TDA) sales tax revenues and $ 23,000 in Transnet funding available for operating and maintenance activities in FY2017, an overall one-time net gain of $3,857,671 in local tax funding, prior period carryovers. In summary, the FY2017 Proposed Amendment estimates a net increase of $4,928,333 in Grant Revenues over the FY2017-2021 time period. PAGE 7 FY2017 Proposed Amended Operating Budget and FY2017-2022 Capital Improvement Program TABLE 8. FY2017 PROPOSED AMENDMENT – GRANT REVENUES FORECAST FY2017 Proposed Amendment Grant Funding Sources FY2017 FY2018 FY2019 FY2020 FY2021 Section 5307 - Urbanized Area Formula $ 18,760,214 $ 19,135,418 $ 19,518,127 $ 19,908,489 $ 19,908,489 $ Section 5311 - Formula Grants For Rural Areas Section 5337 - State Of Good Repair Section 5339 - Bus And Bus Facilities Public Transportation Modernization, Five-Year Total 97,230,737 411,177 411,177 411,177 411,177 411,177 2,055,885 11,045,921 11,602,261 11,834,306 12,070,992 12,070,992 58,624,472 1,492,092 1,538,767 1,569,542 1,600,933 1,600,933 7,802,267 170,662 900,000 Improvement, and Service Enhancement Account Program (PTMISEA)1 1,070,662 Proposition 1B Transit Security Grant Program TSGP)2 STA - State Transit Assistance TDA 4 - Transportation Development Act TDA 4.5 - Transportation Development Act Community Transit Service TransNet TransNet ADA Total Grant Funding Sources $ 860,494 860,494 4,770,311 4,770,311 4,770,311 4,770,311 4,770,311 23,851,555 40,794,989 36,618,000 38,164,000 39,885,000 41,637,000 197,098,989 1,938,402 1,922,000 2,003,000 2,093,000 2,185,000 10,141,402 12,510,000 13,078,000 13,620,000 14,189,000 14,785,000 68,182,000 332,000 345,000 360,000 375,000 391,000 1,803,000 93,086,262 $ 90,320,934 $ 92,250,463 $ 95,303,902 $ 97,759,902 $ 468,721,463 17,633,961 $ 18,949,368 $ 21,091,525 $ 17,848,930 $ 24,472,538 $ 99,996,322 Grant Expenditures Capital Improvement Program $ Positive Train Control1 931,156 931,156 Available for Operating 74,521,145 71,371,566 71,158,938 77,454,972 73,287,364 367,793,985 Total Grant Expenditures $ 93,086,262 $ 90,320,934 $ 92,250,463 $ 95,303,902 $ 97,759,902 $ 468,721,463 FIGURE 4. FY2017 PROPOSED AMENDMENT – SOURCES OF GRANT FUNDS FIGURE 5. FY2017 PROPOSED AMENDMENT – USES OF GRANT FUNDS Capital Federal 21.5% 35.4% Local 59.1% State 5.5% Operating 78.5% OPERATING EXPENDITURES The FY2017 Approved Budget estimated Operating Expenditures would increase 5.0% from the FY2016 budget Table 9). The budgeted increase was tied to indexed-to-inflation increases in existing contracts, additional services provided under the new (at the time) rail contract, and transferring six ( 6) full-time equivalent ( FTE) dispatching positions previously outsourced, increasing District direct staffing from 157.5 FTEs in FY2016 to 161.5 FTEs in FY2017. 2 These PTMISEA and TSGP funds are reserved for the District Positive Train Control capital project. PAGE 8 FY2017 Proposed Amended Operating Budget and FY2017-2022 Capital Improvement Program TABLE 9. FY2017 APPROVED BUDGET – OPERATING EXPENDITURES FORECAST FY2017 FY2014 Expenses FY2015 Actual Salaries And Wages Actual 7,830,651 Fringe Benefits 8,449,194 FY2016 FY2016 Budget Projected 10,089,844 Adopted Budget 8,727,369 11,043,921 4,754,841 4,747,213 5,240,785 5,327,305 4,541,463 16,431,944 17,119,173 10,689,936 15,450,690 9,038,384 Materials And Supplies 7,346,963 7,259,878 7,017,272 6,144,392 5,390,752 Utilities 2,030,271 2,340,620 2,410,797 2,401,285 2,486,356 Casualty And Liability 3,288,498 3,382,201 3,609,145 3,277,774 3,972,700 556,195 533,323 806,567 409,106 741,792 44,513,099 47,863,270 57,564,807 53,299,553 65,243,200 Miscellaneous Expenses 501,929 490,721 692,924 468,718 607,177 Expense Transfers ( 19,769) ( 19,474) ( 20,000) ( 73,474) - Professional Services Taxes Purchased Transportation Services Debt Service Leases And Rentals 2,383,776 1,086,335 998,430 947,218 990,500 569,471 522,841 585,913 528,838 659,077 Contingency 100,000 Total 90,187,869 $ 93,775,295 $ 99,786,420 $ 100,000 96,908,774 $ 104,815,322 The Proposed Amendment estimates a net addition of $3,374,021 in operating expenses in FY2017. Details of the additional operating expenses are presented in Table 11. FY2017 Proposed Amendment – Detailed Changes in Operating Expenditures Forecast below. TABLE 10. FY2017 PROPOSED AMENDMENT – SUMMARY CHANGES IN OPERATING EXPENDITURE FORECAST FY2014 FY2015 FY2016 Expenses Actual Actual Salaries And Wages $ 7,830,651 $ 8,449,194 $ Fringe Benefits 4,754,841 4,747,213 5,240,785 16,431,944 17,119,173 Materials And Supplies 7,346,963 Utilities Casualty And Liability Professional Services Taxes Purchased Transportation Services Budget 10,089,844 $ FY2017 Adopted FY2017 FY2016 Budget (including Proposed Actual Transfers) 8,744,450 $ Revisions Amendment 10,123,392 47,605 3,700,323 5,461,992 22,213 10,170,997 5,484,205 10,689,936 17,951,911 9,038,384 1,494,298 10,532,682 7,259,878 7,017,272 7,240,121 5,390,752 ( 38,344) 5,352,408 2,030,271 2,340,620 2,410,797 2,265,114 2,486,356 2,486,356 3,288,498 3,382,201 3,609,145 3,266,353 3,972,700 3,972,700 556,195 533,323 806,567 394,377 741,792 741,792 44,513,099 47,863,270 57,564,807 48,998,338 65,243,200 1,351,021 66,594,221 Miscellaneous Expenses 501,929 490,721 692,924 457,403 607,177 44,239 651,416 Expense Transfers ( 19,769) ( 19,474) ( 20,000) Debt Service Leases And Rentals 2,383,776 1,086,335 998,430 942,170 990,500 569,471 522,841 585,913 579,890 659,077 29,858 688,935 100,000 423,131 523,131 Contingency Total $ 100,000 90,187,869 $ 93,775,295 $ 99,786,420 $ 94,540,450 $ 104,815,322 $ 990,500 3,374,021 $ 108,189,343 PAGE 9 FY2017 Proposed Amended Operating Budget and FY2017-2022 Capital Improvement Program TABLE 11. FY2017 PROPOSED AMENDMENT – DETAILED CHANGES IN OPERATING EXPENDITURES FORECAST Expense Categories Budget Adjustment SALARIES & WAGES Manager of Way (Operating) $ 27,930 Salary & Fringe Benefit Adjustments 32,159 Transit Asset Mgt Plan Support SALARIES & WAGES Total Expenses 85,548 145,636 FRINGE BENEFITS Manager of Way (Operating) 15,295 Salary & Fringe Benefit Adjustments 37,659 Transit Asset Mgt Plan Support 42,702 Board Meeting Payments Increase 12,500 Camera Cleaning Service 20,000 Cash Collection Services - ICE to Actual Contract Value 34,345 FRINGE BENEFITS Total 95,656 PROFESSIONAL SERVICES Fare Revenue Equipment Maintenance - ICE to Actual Contract In-House Bus RFP Analysis ( 30,131 76,000) Lightbulb & Ballast Replacement-Santa Fe Depot, Old Town & Vista Town Center 205,000 Potential Addl Preventive Maintenance Contracts 989,093 Reduced LOSSAN Fees ( 40,682) Regional Communications System-Safety 146,626 San Diego Sheriff OT for Increased Trespassing Operations 7,704 Temporary Support Services 9,800 1,429,051 Bombardier Insurance Recovery ( Bus Contract Mobilization FY 2017 Budget Correction PURCHASED TRANSPORTATION SERVICES Total MISCELLANEOUS EXPENSES 50,000 SPRINTER Emergency Generator Repairs PROFESSIONAL SERVICES Total PURCHASED TRANSPORTATION SERVICES 40,534 Potential Addl Legal Services 660,268) 2,074,270 1 1,414,003 Collateral Materials MISCELLANEOUS EXPENSES Total 25,000 25,000 CONTINGENCY 264,675 Grand Total $ 3,374,021 SALARIES, WAGES & FRINGE BENEFITS The FY2017 Proposed Amendment adds 3.0 full-time equivalent (FTE) position to the current District roster of 161.5 FTEs, for an adjusted total of 164.5 FTEs. Rail Operations: The Rail Operations Division is adding a Manager, Right of Way position to lead the implementation of Rail Maintenance of Way directed projects, and support supporting construction management and activation of rail infrastructure projects. This position is key for the State of Good Repair rail services program and will also provide necessary, dedicated oversight to the multi-million capital improvement portfolio SANDAG is delivering on behalf of the District. Twenty-Five ( 25) percent of this position will be funded with operating monies, with the balance anticipated to be funded with capital project funds. ........................................................................................................... 1.0 FTE Development Services: The Facilities Department within the Development Services Division is adding two (2) Building Engineer positions to perform advanced duties in the maintenance, repair, and PAGE 10 FY2017 Proposed Amended Operating Budget and FY2017-2022 Capital Improvement Program servicing of District-owned building, facilities, grounds, electrical and life-fire safety systems. These positions support the implementation of a new District Facilities and Equipment Maintenance Business Plan, introduced in concept to the Board on April 21, 2016 and presented in detail on October 20, 2016. Eighty (80) percent of these positions will be supported with federal preventive maintenance funds, with the balance funded with local sales tax dollars as the District match. ................................................... 2.0 FTEs Salaries & Wages, Fringe Benefits ................................................................................................................241,293 $ PROFESSIONAL SERVICES The FY2017 Proposed Amendment recognizes increases in a number of items in the Professional Services category, including a net potential increase of $989,093 for preventive maintenance contracts, either recently executed or currently in procurement, as presented to the Board on October 20, 2016. There is also a one-time payment of 146,626 for the District participation in the upgrade of the Regional Communication System used by Transit Enforcement. Also accounted for is the recent passing of AB1757, which increased the Board meeting stipend from $75 per meeting to $150 per meeting. Variances in independent cost estimates (ICE) to the actual value of two (2) procurements – cash collection services and fare revenue equipment maintenance – required an increase of $64,476 to the budget for these items, and the Office of General Counsel has requested a one -time budget increase of $205,000 in potential additional legal expenditures. One-time decreases in Professional Services includes an allowance for a financial analysis of the Bus request for proposal responses which was performed by District in-house staff, and a reduction in LOSSAN fees; the resultant savings of $116,682 has been moved to Contingency. Professional Services ................................................................................................................................. $ 1,429,051 PURCHASED TRANSPORTATION SERVICES Changes to the Purchased Transportation Services category in the FY2017 Proposed Amendment allows for a notto-exceed $ 2,074,270 in mobilization costs for the new Combined Fixed Route Bus, ADA Paratransit, and Specialized Transportation Operations and Maintenance contract. Also recognized here is a savings of $660,268 realized with a restructure of the Bombardier purchased transportation rail services contract, which transfers and reduced the cost of carrying required rail liability insurance coverage. Finally, there is a small net correction of 0.63 to the FY2017 Approved Budget to correct for rounding errors Purchased Transportation Services ........................................................................................................... $ 1,414,003 MISCELLANEOUS EXPENSES The FY2017 Proposed Amendment budgets $ 25,000 for the development of collateral materials to support potential changes in transit service in FY2018. Miscellaneous Expenses ................................................................................................................................. $ 25,000 CONTINGENCY The FY2017 Approved Budget included $100,000 in Contingency. Expenditure savings totaling $116,682 as noted above and net budget transfers provides for additional contingency monies in the amount of $47,993 to be budgeted. These funds will be carried over to support FY2018 budgetary needs if not used in FY2017. Contingency .................................................................................................................................................. 264,675 $ PAGE 11 FY2017 Proposed Amended Operating Budget and FY2017-2022 Capital Improvement Program PROPOSED AMENDMENT TO FY2017-2021 ADOPTED CAPITAL IMPROVEMENT PROGRAM The Proposed Amendment to the FY2017-2021 Adopted Capital Improvement Program increases the FY2017FY2021 Capital Improvement Program (CIP) budget by $4,928,333, from $463,793,130 to $468,721,463 over the five (5) year time span. CAPITAL PROJECTS MP 209.2 TURNOUT REPLACEMENT In October 2016, the State of California Department of Transportation ( Caltrans) programmed $ 1,000,000 in Proposition 1B Public Transportation Modernization, Improvement, and Service Enhancement Account (PTMISEA) funds for a capital project to replace the existing turnout at Control Point (CP) Songs located at Milepost 209.2 on the District San Diego Subdivision right-of-way. The current configuration allows for passenger track speed through the turnout at 60 miles per hour (mph). The turnout replacement project would allow for a 75+ mph passenger track speed therefor, increasing on time performance and ride quality. POSITIVE TRAIN CONTROL There are also $70,662 in residual FY2014/ 2015 PTMISEA funding that will be programmed in FY2017 for the Positive Train Control capital project. This represents the last tranche of PTMISEA funding for this District project. TABLE 12. FY2017 PROPOSED AMENDMENT – SUMMARY PROJECT SCHEDULES FY2017 Approved MP 209.2 Turnout Replacement $ Revisions 100,000 $ Positive Train Control 860,494 Grand Total 860,494 $ FY2017 FY2018 Amendment Amendment 100,000 $ 70,662 931,156 170,662 $ 1,031,156 $ FY2019 FY2020 FY2021 FY2022 900,000 900,000 PAGE 12 FY2017 Proposed Amended Operating Budget and FY2017-2022 Capital Improvement Program KEY ASSUMPTIONS SUMMARY FY2014 Actual FY2015 Actual FY2016 Budget FY2016 Actual FY2017 Assumption Revenue Operating Revenue $ 19,274,834 $ 19,438,167 $ 20,554,759 $ 18,147,101 $ 17,563,989 System Ridership 12,528,480 12,005,664 11,365,352 Average Revenue per Boarding $ 1.54 $ 12,645,976 13,186,146 1.54 $ 1.56 $ 1.51 $ 1.55 39,774,545 $ 47,589,607 $ Operating Grant Revenue: Local Sales Tax Grant Revenue $ State Operating Grant Revenue $ Federal Operating Grant Revenue $ Other State and Federal $ 47,904,139 $ 47,526,027 $ 50,547,300 5,547,428 $ 5,984,454 $ 5,076,651 $ 4,770,311 15,349,284 $ 13,155,903 $ 13,990,231 $ 12,719,602 $ 19,203,534 0$ 0$ 0 44,513,099 $ 47,863,270 $ 57,564,807 $ 48,998,338 $ 66,594,221 5,813,049 $ 499,402 $ 170,000 $ Expense Purchased Transportation $ System Miles 8,676,523 9,494,513 9,521,632 9,636,405 9,521,632 Large Bus Service 87.5% 89.4% 89.5% 89.5% 90.0% Small Bus Service 12.5% 10.6% 10.5% 10.5% 10.0% Fuel (Diesel, Gasoline, and Natural Gas): $ 6,857,177 $ 6,803,725 $ 6,467,683 $ 5,566,045 $ 4,889,912 Natural Gas per Therm $ 0.60 $ 0.54 $ 0.65 $ 0.51 $ 0.65 Diesel Fuel per Gallon $ 3.05 $ 2.49 $ 2.25 $ 1.59 $ 1.41 Unleaded Gas per Gallon $ 2.89 $ 2.49 $ 2.24 $ 1.61 $ 1.66 12,585,491 $ 13,196,408 $ 15,330,629 $ 12,444,772 $ 15,826,676 Labor Budget $ Total Full-Time Equivalents 151.0 153.5 157.5 161.5 164.5 17.0 10.7 8.2 8.4 9.45 11.988% 18.672% 19.850% 19.851% 21.597% PERS Employer Paid Employee Contribution Rate 0.000% 0.000% 0.000% 0.000% 0.000% Deferred Compensation Matching Contribution 4.000% 4.000% 4.000% 4.000% 4.000% Direct Personnel Capital and Projects Benefits: PERS Employer Contribution Rate Employer Monthly Medical Premium Contribution: Employee $ 550 $ 550 $ 550 $ 550 $ 550 Employee plus One $ 1,040 $ 1,040 $ 1,040 $ 1,040 $ 1,040 Family $ 1,392 $ 1,392 $ 1,392 $ 1,392 $ 1,392 Waive $ 462 $ 462 $ 462 $ 462 $ 462 PAGE 13 FY2017 Proposed Amended Operating Budget and FY2017-2022 Capital Improvement Program KEY DATES Following are the key dates for completing the FY2017 Proposed Amendment process: TABLE 13. FY2017 PROPOSED AMENDMENT — KEY DATES Date January 19, 2017 Action Present FY2017 Proposed Amendment to Board Set date for Public Hearing (February 16, 2017) No later than February 1, 2017 Publish notice to public regarding public hearing on February 16, 2017 Release Proposed Amendment budget documents to public February 2, 2017 Present FY2017 Proposed Amendment in detail to Performance, Administration and Finance Committee February 16, 2017 Open Public Hearing Receive public comment, close hearing and adopt budget PAGE 14 Agenda Item # 16 APPROVE PROPOSED FY 2018 – 2022 CAPITAL IMPROVEMENT PROGRAM FOR AMENDMENT OF THE REGIONAL TRANSPORTATION IMPROVEMENT PROGRAM Time Sensitive STAFF RECOMMENDATION: X Consent Staff recommends that the Board: 1) Approve the proposed FY 2018-2022 Capital Improvement Program (CIP) budget based on estimated federal and non-federal funding levels Attachments A and C); 2) Forward a recommendation to the San Diego Association of Governments SANDAG) Board of Directors to approve the proposed FY 2018 CIP Attachment B) and operating expenses (Attachment C) for update of the 2016 Regional Transportation Improvement Program (RTIP); and 3) Approve the list of projects to be funded with TransNet funds with a pledge that NCTD will expend the funds in compliance with the requirements of the TransNet Ordinance and Expenditure Plan. BACKGROUND INFORMATION: Each year, the North County Transit District ( NCTD) prepares and submits an update of its baseline five-year the proposed FY 2018-2022 Capital Improvement Program ( CIP) to the San Diego Association of Governments ( SANDAG) for approval and incorporation into the regional transportation plan ( RTIP) and, subsequently, the State of California transportation improvement plan, per federal requirements. To meet regional deadlines for the FY 2018-2022 RTIP, NCTD was required to submit the draft proposed CIP to SANDAG by December 19, 2016. This information has been submitted, subject to final approval by the NCTD Board. NCTD staff is proposing a capital budget of $ 15.4 million for FY 2018, which is approximately 2.9% above the budget target for annual capital investment, and 2.9 million below the $18.4 million funded in FY 2017. The decrease in funding for the FY 2018 CIP reflects the transfer of revenues from the capital to the operating budget to support additional services, including preventive maintenance, provided under of the rail operations and maintenance contract executed in FY 2016, and the execution of a new bus operations and maintenance contract, and the new facilities maintenance contracts that NCTD has executed in FY 2017. The CIP investment proposed over FY 2018-2022 is $92.9 million, which funds the procurement of seventy-six (76) BREEZE buses, thirty-six (36) LIFT vehicles, sixty-two (62) non-revenue vehicles, the replacement of eleven (11) turnouts and two (2) grade crossings, programmatic rebuild and replacement of SPRINTER and COASTER vehicle components, and completes the reimplementation and January 19, 2017 Board Meeting Staff Report No.: SR-17-01-016 upgrade of the NCTD enterprise resource planning system. Attachment B includes a listing of all funded projects. The proposed FY 2018-2022 CIP is based on the following assumptions: Federal Transit Administration ( FTA) grant funding ( Sections 5307, 5311, 5337 and 5339) of at least $ 32.7 million annually will be made available to NCTD; State of California Proposition 1B Public Transportation Modernization, Improvement, and Service Enhancement Account ( PTMISEA) funding totaling $ 900,000 will be made available in FY2018 to fund a turnout replacement project State Transit Assistance (STA) funding of at least $4.77 million annually will be made available to NCTD; and Local revenues ( TransNet and Transportation Development Act [ TDA]) will increase from $55.5 million in FY 2018 to $56.2 million in FY 2022. Each year, proposed capital investments are ranked according to established criteria, with the most critical projects prioritized for funding, with state of good repair, regulatory requirements and safety/security receiving the highest priority. A detailed schedule of the proposed FY 2018 projects is included in Attachment B. Attachment D includes the detailed project descriptions. Attachment C summarizes the projected funding levels anticipated to support the NCTD capital and operating programs. The total capital requests for FY 2018 was 43.1 million to support sixty-four (64) projects. Of those requests, twenty-seven 27) projects are recommended for funding with $15.4 million of capital funding that is available for FY 2018. There were thirty-seven (37) projects proposed in FY 2018 with an estimated cost of $ 27.7 million that were not funded due to financial constraints and other considerations, and an additional $ 46 million of proposed projects that are planned yet were not funded in FY 2019 through FY 2022. NCTD’s Legislative Plan will include a strategy for seeking discretionary grants to support projects that are not funded. Attachment D contains a listing of the FY 2018 unfunded projects. Staff recommends that the Board: 1) Approve the proposed FY 2018-2022 Capital Improvement Program ( CIP) budget based on estimated federal and non-federal funding levels Attachments A and C); 2) Forward a recommendation to the SANDAG Board of Directors to approve the proposed FY 2018 CIP ( Attachment B) and operating expenses Attachment C) for update of the 2016 Regional Transportation Improvement Program (RTIP); and 3) Approve the list of projects to be funded with Transnet funds with a pledge that NCTD will expend the funds in compliance with the requirements of the TransNet Ordinance and Expenditure Plan. ATTACHMENT: 16A – Summary CIP Budget FY 2018-2022 Constrained Baseline 16B – Detailed CIP FY 2018-2022 Constrained Baseline 16C – FY 2018-2022 Funding Summary 16D – FY 2018 CIP Detailed Project Descriptions January 19, 2017 Board Meeting Staff Report No.: SR-17-01-016 FISCAL IMPACT: COMMITTEE REVIEW: STAFF CONTACT: The fiscal impact for FY 2018 is $93.9 million, with $15.4 million for the FY 2017 capital improvement program, and $ 78.4 million for operating and preventive maintenance expenditures. The $93.9 million is comprised of $32.7 million in FY 2018 FTA Sections 5307, 5311, 5337 and 5339 funds; $ 900K in PTMISEA program; $4.7 million in STA funding; $38.6 million in TDA funds and $16.9 million in TransNet funding. None Luz Howe, Chief Financial Officer E-mail: lcofresihowe@nctd.org Phone: 760-967-2829 January 19, 2017 Board Meeting Staff Report No.: SR-17-01-016 ATTACHMENT 16A NORTH COUNTY TRANSIT DISTRICT SUMMARY CIP BUDGET FY 2018 - FY 2022 CONSTRAINED BASELINE Asset Class1 Asset Description 104 Revenue Vehicles 223 Service Vehicles 337 Building & Structures 338 Building & Structure Improvements 432 Right-of-Way 433 Right-of-Way Improvements 434 Operating Yards Equipment 435 Shop/Garage Equipment 436 Signal Equipment 440 Data Processing Equipment Totals - Constrained CIP 1 As defined by Board Policy No. 29 – Asset Management FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 9,588,206 17,392,186 14,231,836 14,664,441 15,817,451 1,193,862 334,667 411,629 342,939 421,803 155,000 196,992 1,826,594 Totals 71,694,120 2,704,900 155,000 87,523 2,807,853 602,500 3,694,868 289,587 175,664 175,664 175,664 920,000 1,195,500 350,000 2,848,985 816,579 7,141,079 69,422 69,422 46,021 46,021 2,316,600 2,316,600 4,254,955 2,515,670 49,285 585,000 1,105,000 15,436,767 19,228,248 19,407,482 19,557,144 19,263,903 92,893,544 NORTH COUNTY TRANSIT DISTRICT SUMMARY CIP BUDGET FY 2018 – FY 2022 CONSTRAINED BASELINE BY ASSET CLASS 2,316,600 69,422 4,254,955 46,021 104 Revenue Vehicles 223 Service Vehicles 3,694,868 816,579 7,141,079 337 Building & Structures 155,000 338 Building & Structure Improvements 2,704,900 432 Right-of-Way 433 Right-of-Way Improvements 71,694,120 434 Operating Yards Equipment 435 Shop/Garage Equipment 436 Signal Equipment ATTACHMENT 16B NORTH COUNTY TRANSIT DISTRICT 2018 DETAILED CAPITAL IMPROVEMENT PROGRAM CONSTRAINED BASELINE Description BREEZE Engine and Transmission Rebuilds BREEZE Fleet Replacement COASTER Air Conditioning Update and Retrofit COASTER Bi-Level Coach Transformer Overhaul COASTER Door System Overhaul COASTER Locomotive Air Compressors Overhaul Engineering Services for Rail Vehicle and Zero Emission Bus Procurement SPRINTER Car Body Air Valves SPRINTER DMU Operator Seat Replacement COASTER Passenger Car Interior/Exterior Refresh Fleetwatch Replacement and Expansion - BREEZE, LIFT and FLEX Zonar Replacement and Expansion Asset Class 104 - Revenue Vehicles BREEZE Non-Revenue Vehicle Replacement Fleetwatch Update - BREEZE Non-Revenue Vehicles Replacement of Rail Non-Revenue Signal Maintenance Trucks Asset Class 223 - Service Vehicles Facilities Improvements Asset Class 338 - Buildings and Structure Improvements Amount Requested 275,000 5,762,121 103,248 61,544 765,632 17,200 220,000 1,616,640 94,000 275,166 153,722 243,933 9,588,206 1,193,862 196,992 MP 209.1 Turnout Replacement 900,000 Permanent BMP Improvements at MP 225.5 300,000 Asset Class 434 - Operating Yards Equipment BREEZE Shop Forklift Asset Class 435 - Shop/Garage Equipment 1,826,594 69,422 12% 0.4% 46,021 46,021 297,276 500,000 212,307 461,077 Transit Asset Management Plan Development 450,000 Trapeze Reimplementation & Upgrade 595,010 TOTAL FY 2018 1% 69,422 IT Equipment Upgrades JD Edwards Reimplementation & Upgrade Network Equipment Revitalization Timekeeping System Asset Class 440 - Data Processing Equipment 8% 196,992 626,594 COASTER Service Carts 62% 874,494 99,728 219,640 Los Peñasquitos Lagoon Bridges Asset Class 433 - Right-of-Way Improvements of Total 0.3% 2,515,670 16% 15,436,767 100% NORTH COUNTY TRANSIT DISTRICT 2019 DETAILED CAPITAL IMPROVEMENT PROGRAM CONSTRAINED BASELINE Description BREEZE Engine and Transmission Rebuilds BREEZE Fleet Replacement COASTER Air Conditioning Update and Retrofit COASTER Head End Power Rebuild COASTER Locomotive Air Compressors Overhaul LIFT Fleet Replacement SPRINTER Overhaul COASTER Passenger Car Interior/Exterior Refresh COASTER Locomotive Overhaul Asset Class 104 - Revenue Vehicles BREEZE Non-Revenue Vehicle Replacement Asset Class 223 - Service Vehicles District-wide Electrical Study Asset Class 337 - Buildings and Structures Facilities Improvements Amount Requested % 275,000 11,011,274 103,248 98,951 17,200 1,620,708 466,834 401,538 3,397,433 17,392,186 334,667 155,000 113,923 ROW Survey 175,664 Network Equipment Revitalization Asset Class 440 - Data Processing Equipment TOTAL FY 2019 1% 87,523 High-Wide Clearance Survey of San Diego and Escondido Subdivisions Asset Class 433 - Right-of-Way Improvements 2% 155,000 87,523 Noell St Crossing Renewal Sassafras St Crossing Renewal 90% 334,667 Asset Class 338 - Buildings and Structure Improvements Asset Class 432 - Right-of-Way of Total 289,587 0.5% 2% 376,000 544,000 920,000 5% 49,285 49,285 0.3% 19,228,248 100% NORTH COUNTY TRANSIT DISTRICT 2020 DETAILED CAPITAL IMPROVEMENT PROGRAM CONSTRAINED BASELINE Description BREEZE Engine and Transmission Rebuilds BREEZE Fleet Replacement COASTER Air Conditioning Update and Retrofit COASTER Traction Motor Rebuilds LIFT Fleet Replacement SPRINTER Overhaul COASTER Passenger Car Interior/Exterior Refresh COASTER Locomotive Overhaul Asset Class 104 - Revenue Vehicles BREEZE Non-Revenue Vehicle Replacement Asset Class 223 - Service Vehicles MOW Facility Improvements Facilities Improvements Asset Class 338 - Buildings and Structure Improvements ROW Survey Asset Class 432 - Right-of-Way Amount Requested of Total 275,000 7,768,928 103,248 50,256 1,640,615 480,839 413,584 3,499,366 14,231,836 411,629 411,629 2,807,853 175,664 644,500 376,000 San Onofre Mainline Track Turnout Replacement 175,000 Asset Class 440 - Data Processing Equipment TOTAL FY 2020 14% 175,664 Palm St Crossing Renewal San Diego Subdivision Wireless Mesh Expansion Phase II 2% 2,594,500 213,353 Bridge 225.4 Painting Asset Class 433 - Right-of-Way Improvements 73% 1,195,500 1% 6% 585,000 585,000 3% 19,407,482 100% NORTH COUNTY TRANSIT DISTRICT 2021 DETAILED CAPITAL IMPROVEMENT PROGRAM CONSTRAINED BASELINE Description BREEZE Engine and Transmission Rebuilds BREEZE Fleet Replacement COASTER Air Conditioning Update and Retrofit SPRINTER Overhaul COASTER Passenger Car Interior/Exterior Refresh COASTER Locomotive Overhaul Asset Class 104 - Revenue Vehicles BREEZE Non-Revenue Vehicle Replacement Asset Class 223 - Service Vehicles MOW Facility Improvements Asset Class 338 - Buildings and Structure Improvements ROW Survey Asset Class 432 - Right-of-Way Depot Tracks 1&2 Turnout Replacement Depot Tracks 3&4 Turnout Replacement Amount Requested 275,000 9,760,590 103,248 495,264 425,992 3,604,347 14,664,441 342,939 602,500 175,664 TOTAL FY 2021 1% 175,000 175,000 816,600 Asset Class 440 - Data Processing Equipment 3% 175,664 Grade Crossing Signal Controller Replacement San Diego Subdivision Wireless Mesh Update 2% 602,500 350,000 Asset Class 436 - Signal Equipment 75% 342,939 Asset Class 433 - Right-of-Way Improvements M22 Switch Replacement of Total 2% 1,500,000 2,316,600 12% 1,105,000 1,105,000 6% 19,557,144 100% NORTH COUNTY TRANSIT DISTRICT 2022 DETAILED CAPITAL IMPROVEMENT PROGRAM CONSTRAINED BASELINE Description BREEZE Engine and Transmission Rebuilds BREEZE Fleet Replacement COASTER Air Conditioning Update and Retrofit COASTER Traction Motor Rebuilds COASTER Passenger Car Interior/Exterior Refresh COASTER Locomotive Overhaul Asset Class 104 - Revenue Vehicles BREEZE Non-Revenue Vehicle Replacement Asset Class 223 - Service Vehicles ROW Survey Asset Class 432 - Right-of-Way San Onofre Bridge Replacements Stuart Yard West Turnout Replacement Asset Class 433 - Right-of-Way Improvements TOTAL FY 2022 Amount Requested of Total 275,000 11,234,637 103,248 53,316 438,772 3,712,478 15,817,451 82% 421,803 421,803 2% 175,664 175,664 1% 2,673,985 175,000 2,848,985 15% 19,263,903 100% ATTACHMENT 16C NORTH COUNTY TRANSIT DISTRICT GRANT FUNDING SUMMARY FY 2018 to FY 2022 Revenues FY 2019 FY 2020 19,160,000 19,160,000 400,110 Section 5337 - State of Good Repair Section 5339 - Bus and Bus Facilities Section 5307 - Urbanized Area Formula Section 5311 - Formula Grants for Rural Areas PTMISEA STA - State Transit Assistance TDA 4.0 - Transportation Development Act TDA 4.5 - Transportation Development Act – Community Transit Service TransNet TransNet - Major Corridors TransNet ADA FY 2018 FY 2021 FY 2022 19,160,000 19,160,000 19,160,000 95,799,999 400,110 400,110 400,110 400,110 2,000,550 11,602,000 11,602,000 11,602,000 11,602,000 11,602,000 58,010,000 1,539,000 1,539,000 1,539,000 1,539,000 1,539,000 7,695,000 900,000 Total 900,000 4,770,311 4,770,311 4,770,311 4,770,311 4,770,311 23,851,555 36,707,693 38,175,067 38,900,067 40,019,067 39,484,270 193,286,164 1,922,000 2,003,000 2,093,000 2,185,000 2,185,000 10,388,000 14,792,930 12,986,000 13,555,000 14,152,000 14,152,000 69,637,930 1,715,876 1,715,876 368,000 343,000 358,000 374,000 374,000 1,817,000 93,877,920 90,978,488 92,377,488 94,201,488 93,666,691 465,102,075 Capital Improvement Program 15,436,767 19,228,248 19,407,482 19,557,144 19,263,903 92,893,544 Available for Operating 78,441,153 71,750,240 72,970,006 74,644,344 74,402,788 372,208,531 Total Grant Revenue Expenditures Total Grant Expenditures 93,877,920 90,978,488 92,377,488 94,201,488 93,666,691 465,102,075 ATTACHMENT 16D FY 2018 CAPITAL IMPROVEMENT PROGRAM PROJECT DESCRIPTIONS The North County Transit District ( NCTD) Capital Improvement Program ( CIP) outlines NCTD capital needs and planned investments over a rolling five (5) years. The NCTD CIP is updated annually and is the basis for requesting Federal Transit Administration (FTA) Section 5307, 5311, 5337, and 5339 funds, as well as state and local funds. The NCTD CIP informs the update of the Regional Transportation Improvement Program (RTIP), the multi-year funding program for major transportation projects in the San Diego region. It is a Federal requirement that projects seeking FTA support must be programmed and/or planned in the RTIP. As the Metropolitan Planning Organization ( MPO) for the San Diego region, the San Diego Association of Governments SANDAG) is responsible for programming and/or planning federal, state and local funds in the RTIP. The CIP is revenue-constrained, and proposes projects programmed based on available or committed funding and/or reasonable estimates of future funding. NCTD Board of Directors Board) Policy 17 ensures the proper procedures and controls are followed in the development and implementation of the annual operating and capital budgets. The FY 2018 CIP development process included a comprehensive review of existing projects. This review is a recalibration of NCTD’s investment direction considering current financial resources available. Through the review process, the project scopes have been revisited and cost estimates updated, with prioritized projects programmed to receive additional funding from the FY 2018 CIP, if needed. In sum, the NCTD projects funded will address the most critical capital needs first, including investments related to state of good repair and regulatory requirements. NCTD developed the FY 2018 Capital Improvement Program by prioritizing projects based on the following factors: Useful life status Regulatory requirements Safety and security Project readiness Contractual commitment Consistency with NCTD Goals PROJECTS PROPOSED FOR FY 18 FUNDING The following projects are proposed for FY 18 funding in the FY 18-FY 22 Capital Improvement Program. BREEZE, LIFT AND FLEX PROJECTS The following projects fund improvements to the BREEZE fixed route, LIFT paratransit and FLEX demand response systems: Revenue Vehicle Replacements: To maintain its buses in a state of good repair, the NCTD fleet management plan identifies a need to replace a certain number of its 35- and 40-foot Compressed Natural Gas (CNG) buses each year, based on an estimated life of 12 years or 500,000 miles. The replacement plan will phase out the BREEZE 400 Series 19-passenger vans and replace those with full-size buses. The bus procurement will include line inspections, radio installation and in-service preparation. The average cost of each vehicle is $575,000 in FY 18. Funded in FY 17 1,974,593 FY 18 5,762,121 FY 19 11,011,274 FY 20 7,768,928 FY 21 9,760,590 FY 22 11,234,637 Engine and Transmission Rebuilds: This project funds the replacement and/or rebuild of engines and transmissions in NCTD fixed-route buses. The current maintenance contract for the fixed-route system does not cover the cost of engine and transmission rebuilds that have exceeded baselines. Replacements are made for compressed natural gas ( CNG) engines in excess of 200,000 miles, diesel engines in excess of 400,000 miles, and transmissions in excess of 400,000 miles. Funded in FY 17 250,000 FY 18 275,000 FY 19 275,000 FY 20 275,000 FY 21 275,000 FY 22 275,000 BREEZE Shop Forklift: This project funds the replacement of the East Division bus facility forklift which has reached the end of its service life. Funded in FY 17 FY 18 46,021 - - - - FY 19 FY 20 FY 21 FY 22 Fleetwatch Update: BREEZE Non-Revenue Vehicles: This project funds the replacement of the FLEETWATCH system on BREEZE non-revenue vehicles. Funded in FY 17 Page 2 of 11 FY 18 99,728 - - - - FY 19 FY 20 FY 21 FY 22 Fleetwatch Replacement and Expansion: BREEZE, LIFT and FLEX: This project funds the replacement of the Fleetwatch system on BREEZE 400 Series revenue vehicles and the installation of the Fleetwatch system on the LIFT and FLEX system. Funded in FY 17 FY 18 FY 19 153,722 - - - - FY 20 FY 21 FY 22 Zonar Replacement and Expansion: This project funds the replacement of Zonar wands with tablets on the BREEZE system and the purchase of Zonar tablets for the LIFT and FLEX system. Funded in FY 17 FY 18 FY 19 243,933 - - - - FY 20 FY 21 FY 22 COASTER PROJECTS: The following projects fund improvements to the COASTER rail mode: COASTER Air Conditioning Update and Retrofit: This project funds the programmatic replacement of COASTER air conditioning units. Funded in FY 17 FY 18 103,248 FY 19 103,248 FY 20 103,248 FY 21 103,248 FY 22 103,248 COASTER Bi-Level Coach Transformer Overhaul: This project funds the repair or replacement of the power transformer on the COASTER coach cars. Funded in FY 17 FY 18 61,544 - - - - FY 19 FY 20 FY 21 FY 22 COASTER Door System Overhaul: This project funds the programmatic rebuild of COASTER door systems. Funded in FY 17 FY 18 FY 19 765,632 - - - - FY 20 FY 21 FY 22 COASTER Locomotive Air Compressors Overhaul: This project funds the overhaul of COASTER locomotives air compressors. Funded in FY 17 Page 3 of 11 FY 18 17,200 FY 19 17,200 - - - FY 20 FY 21 FY 22 COASTER Service Carts: This project replaces COASTER service carts that have reached the end of their service life. Funded in FY 17 FY 18 69,422 - - - - FY 19 FY 20 FY 21 FY 22 COASTER Passenger Car Interior/Exterior Refresh: This project funds the retrofit of exterior and interior components of COASTER passenger cars. Funded in FY 17 FY 18 275,166 FY 19 401,538 FY 20 413,584 FY 21 425,992 FY 22 438,772 SPRINTER PROJECTS The following projects fund improvements to the SPRINTER rail mode: SPRINTER Car Body Air Valves: This project funds the programmatic rebuild/replacement of SPRINTER brake control units and associated components. Funded in FY 17 FY 18 FY 19 1,616,640 - - - - FY 20 FY 21 FY 22 SPRINTER DMU Operator Seat Replacement: This project funds the replacement of SPRINTER operator seats. Funded in FY 17 FY 18 94,000 - - - - FY 19 FY 20 FY 21 FY 22 NON-REVENUE SUPPORT VEHICLES REHABILITATION AND REPLACEMENT The following projects fund the procurement of non-revenue vehicles, including BREEZE service vehicles to support fixed route operations and facilities maintenance and rail signal maintenance trucks. BREEZE Non-Revenue Vehicle Replacement: replacement of non-revenue service vehicles. Funded in FY 17 Page 4 of 11 FY 18 874,494 FY 19 334,667 This project funds the programmatic FY 20 411,629 FY 21 342,939 FY 22 421,803 Replacement of Rail Non-Revenue Signal Maintenance Trucks: This project funds the programmatic replacement of non-revenue signal maintenance trucks that have reached the end of their service life. Funded in FY 17 FY 18 FY 19 219,640 - - - - FY 20 FY 21 FY 22 Engineering Services for Rail Vehicle and Zero Emission Bus Procurement: This project funds planning tasks related to the procurement of zero emission rail and bus vehicles. Funded in FY 17 FY 18 FY 19 220,000 - - - - FY 20 FY 21 FY 22 BUILDING AND FACILITIES REHABILITATION AND UPGRADES The following projects fund the rehabilitation and upgrade of administration and maintenance facilities: Facilities Improvements: This project funds programmatic improvements to NCTD facilities. Projects include the replacement of HVAC systems at BREEZE East and West Divisions, Vista Transit Center and SPRINTER Operations Facility, carpet replacement at West Division and window replacement and gas methane alarm refurbishment at East Division. Funded in FY 17 FY 18 196,992 FY 19 87,523 FY 20 213,353 - - FY 21 FY 22 TRACK AND TRACK STRUCTURE REHABILITATION The following project funds select track rehabilitation activities: Los Peñasquitos Lagoon Bridges ( MP 246.1, 246.9, 247.1, 247.7): On behalf of NCTD, SANDAG is replacing four ( 4) aging, wooden trestle railway bridges that cross the Los Peñasquitos Lagoon, located in the City of San Diego, with modern, single-track, concrete bridges to maintain compliance with Federal Railroad Administration ( FRA) standards and meet current/future demand for intercity, commuter, and freight rail services. Given the complexities of performing the required work in the environmentally sensitive area, SANDAG has forecast a need for additional funding to complete the current work. Funded in FY 17 4,373,406 Page 5 of 11 FY 18 FY 19 626,594 - - - - FY 20 FY 21 FY 22 MP 209.2 Turnout Replacement: This project funds the replacement of a left hand turnout at Mile Post 209.2 with an equilateral turnout. Funded in FY 17 FY 18 FY 19 900,000 - - - - FY 20 FY 21 FY 22 INFORMATION TECHNOLOGY HARDWARE AND SOFTWARE PURCHASES AND UPGRADES The following projects fund programmatic and one-time information technology enhancements and network upgrades: Network Equipment Revitalization: This project funds the programmatic replacement and/or upgrades of the NCTD network infrastructure. Funded in FY 17 FY 18 212,307 FY 19 49,285 - - - FY 20 FY 21 FY 22 IT Equipment Upgrades: This project funds the programmatic replacement and/or upgrades of the NCTD information technology infrastructure, including hardware purchases. Funded in FY 17 250,000 FY 18 FY 19 297,276 - - - - FY 20 FY 21 FY 22 JD Edwards Reimplementation & Upgrade: This project funds the reimplementation and upgrade of the NCTD enterprise resource planning system. Funded in FY 17 500,000 FY 18 FY 19 500,000 - - - - FY 20 FY 21 FY 22 Timekeeping System: This project funds the purchase and installation of a District-wide timekeeping system. Funded in FY 17 FY 18 FY 19 461,077 - - - - FY 20 FY 21 FY 22 Transit Asset Management: This project funds the development of a transit asset management plan. Funded in FY 17 Page 6 of 11 FY 18 FY 19 450,000 - - - - FY 20 FY 21 FY 22 Trapeze: This project funds the purchase of modules for Trapeze scheduling software for LIFT and FLEX services. Funded in FY 17 480,420 FY 18 FY 19 595,010 - - - - FY 20 FY 21 FY 22 MAINTENANCE OF WAY REHABILITATION AND REPAIR The following project funds select maintenance of way rehabilitation activities: Permanent BMP Improvements at MP 225.5: This project funds Best Management Practices BMP) at Mile Post 225.5 to mitigate erosion of the track bed and runoff onto adjacent property. Funded in FY 17 FY 18 FY 19 300,000 - - - - FY 20 FY 21 FY 22 PROJECTS NOT PROPOSED FOR FY 18 FUNDING The following projects are not proposed for FY 18 funding. NCTD assess projects based on defined criteria, including useful life status, regulatory requirement and project readiness, among others. Once projects are ranked according to this criteria, the project list is then constrained based on the amount of available funding. Therefore, the unfunded project list encompasses projects with varying priorities; NCTD will seek discretionary funding to advance the highest priority projects. BREEZE Automatic Vehicle Announcement System: This project funds the installation of an Automatic Vehicle Announcement System on BREEZE vehicles. FY 18 1,041,751 - - - - FY 19 FY 20 FY 21 FY 22 FLEX Fleet Replacement: This project funds the programmatic replacement of FLEX vehicles. FY 18 773,007 - - - - FY 19 FY 20 FY 21 FY 22 LIFT Fleet Replacement: This project funds the programmatic replacement of LIFT vehicles. FY 18 1,512,095 - - - - Page 7 of 11 FY 19 FY 20 FY 21 FY 22 Bridge 208.6 Painting: This project completes the funding needed to paint Bridge 208.6. FY 18 88,435 - - - - FY 19 FY 20 FY 21 FY 22 Del Mar Bluffs Stabilization: This project funds the stabilization of the Del Mar bluffs to reduce erosion and runoff. FY 18 1,518,000 - - - - FY 19 FY 20 FY 21 FY 22 East Division Facility Expansion: This project funds the design, permitting and construction of the expansion of the East Division bus facility. FY 18 9,401,885 - - - - FY 19 FY 20 FY 21 FY 22 Mission Ave Fiber Phase II: This project completes the installation of fiber between the General Administrative Offices and Oceanside Transit Center. FY 18 385,168 - - - - FY 19 FY 20 FY 21 FY 22 Permanent BMP Improvements at MP 225.5: This project funds Best Management Practices BMP) at Mile Post 225.5 to mitigate erosion of the track bed and runoff onto adjacent property. FY 18 100,000 - - - - FY 19 FY 20 FY 21 FY 22 San Onofre Bridge Replacements: This project funds the replacement of the San Onofre Bridge MP 209.9). FY 18 1,018,633 FY 19 1,013,633 FY 20 4,030,378 FY 21 6,663,963 - FY 22 Solana Beach Elevators: This project funds the upgrade of the Solana Beach Station elevators to current elevator codes. FY 18 402,360 - - - - Page 8 of 11 FY 19 FY 20 FY 21 FY 22 York and Santa Fe Intersection Study: This project funds a plan for safety improvements at the York and Santa Fe intersection. FY 18 385,168 - - - - FY 19 FY 20 FY 21 FY 22 On-Board Video System: This project replaces the existing camera systems on the COASTER and SPRINTER systems and purchases new cameras for the LIFT and FLEX systems, providing an integrated system across modes. FY 18 763,697 FY 19 1,011,591 FY 20 753,689 - - FY 21 FY 22 Escondido Subdivision Signal House Air Conditioning Units: This project funds the installation of 12 air conditioning units in the Escondido Subdivision signal houses. FY 18 67,500 - - - - FY 19 FY 20 FY 21 FY 22 Hotbox Detector at CP Tecolote: This project funds a new hotbox detector at Control Point (CP) Tecolote. FY 18 188,000 - - - - FY 19 FY 20 FY 21 FY 22 Joint Crossing Improvements: This project funds improvements at eleven (11) grade crossings shared with MTS. FY 18 870,100 - - - - FY 19 FY 20 FY 21 FY 22 Turnout Replacement: This project funds the programmatic replacement of ten (10) turnouts that have reached the end of their service life. FY 18 2,120,000 FY 19 500,000 - FY 20 FY 21 175,000 - FY 22 Crossing Renewal: This project funds the programmatic replacement of two (2) grade crossings that have reached the end of their service life. FY 18 544,000 - Page 9 of 11 FY 19 FY 20 376,000 - - FY 21 FY 22 ROW Drainage Improvement Program: This project funds the programmatic repair of drainage channels along the rail right-of-way. FY 18 50,000 - - - - FY 19 FY 20 FY 21 FY 22 Vita Gold Yard Rehabilitation: This project funds the repair and rehabilitation of the NCTD Vita Gold yard. FY 18 120,000 - - - - FY 19 FY 20 FY 21 FY 22 COASTER Platform Shelter Plan: This project funds a plan for the replacement of station furniture at COASTER stations, including benches, shelters, and electronic signage. FY 18 90,000 - - - - FY 19 FY 20 FY 21 FY 22 Rail Customer Information Systems: This project funds new electronic rail signs at the COASTER stations. FY 18 761,250 - - - - FY 19 FY 20 FY 21 FY 22 ROW Survey: This project funds the surveying of NCTD's ROW. FY 18 175,664 - - - - FY 19 FY 20 FY 21 FY 22 COASTER Head End Power Rebuild: This project funds the rebuild of the COASTER Head End Power (HEP) units. FY 18 95,719 - - - - FY 19 FY 20 FY 21 FY 22 COASTER Traction Motor Rebuilds: This project funds the programmatic rebuild of COASTER traction motors, main engine and generators. FY 18 47,372 - - - - Page 10 of 11 FY 19 FY 20 FY 21 FY 22 Replacement of Rail Non-Revenue Vehicles: This project funds the programmatic replacement of non-revenue vehicles that have reached the end of their service life. FY 18 108,000 - - - - FY 19 FY 20 FY 21 FY 22 SPRINTER DMU Wheels: This project funds the programmatic replacement of SPRINTER wheels. FY 18 377,542 - - - - FY 19 FY 20 FY 21 FY 22 SPRINTER Overhaul: This project funds the programmatic rehabilitation of the SPRINTER diesel multiple units (DMUs). FY 18 453,237 - - - - FY 19 FY 20 FY 21 FY 22 SPRINTER Passenger Seat Cushion Replacement: This project funds the replacement of worn SPRINTER passenger seat material. FY 18 890,430 - - - - FY 19 FY 20 FY 21 FY 22 SPRINTER Truck Overhaul: This project funds the programmatic rebuild of SPRINTER drive and float trucks. FY 18 47,500 - - - - FY 19 FY 20 FY 21 FY 22 COASTER Locomotive Overhaul: This project funds the full overhaul and upgrade of COASTER locomotives. FY 18 3,298,488 - - - - Page 11 of 11 FY 19 FY 20 FY 21 FY 22 Agenda Item # 17 AUTHORIZE THE EXECUTIVE DIRECTOR TO EXECUTE REVISION NO. 1 TO EXHIBIT A-2 FOR LOS PEÑASQUITOS LAGOON BRIDGE REPLACEMENTS PROJECT AND REALLOCATE FUNDING FROM SPECIFIED PROJECTS FOR ADDITIONAL WORK Time Sensitive STAFF RECOMMENDATION: X Consent Staff recommends that the Board of Directors (Board): Authorize the Executive Director to execute Revision No. 1 to Exhibit A-2, Los Peñasquitos Lagoon Bridge Replacements Project, pursuant to Addendum 18 to the Master Memorandum of Understanding ( MOU) between the San Diego Association of Governments ( SANDAG), San Diego Metropolitan Transit System MTS), and North County Transit District (NCTD), with a total project cost not-toexceed $39,248,350, including: 1. An amount not-to-exceed $ 1,999,267 for post-construction environmental mitigation, relocation of the high-water detector, relocation of Positive Train Control fiber, and costs associated with a professional evaluation of the cause of bridge settlement; and 2. Reallocate funding of up to $7,500,000 from specified projects for additional work. BACKGROUND INFORMATION: In accordance with Senate Bill No. 1703 ( 2002), SANDAG is responsible for implementing major and capacity-increasing capital projects in the region. Addendum 18 to the Master MOU between SANDAG, MTS, and NCTD outlines the terms and conditions related to such projects specifically concerning cooperative work efforts, project development, and implementation of capital projects in which SANDAG and NCTD each participate. During the NCTD Capital Improvement Program ( CIP) for fiscal years ( FY) 2013 and 2014, NCTD funded Los Peñasquitos Lagoon Bridge Replacements Project which included four (4) timber trestle railway bridges (Bridge 246.1, Bridge 246.9, Bridge 247.1, and Bridge 247.7) built in the 1920s and 1930s that have reached the end of their useful life and require extensive maintenance to support on-going operations. The Los Peñasquitos Lagoon Bridge Replacements Project is considered a major capital project and, as such, was transferred to SANDAG for project implementation. For each project transferred to SANDAG for implementation, SANDAG and NCTD collaborate to complete and execute an Exhibit A – Project Scope of Work. At the October 17, 2013 NCTD Board meeting, the Board authorized the Executive Director to execute Exhibit A-2 pursuant to Addendum 18 to the Master MOU with SANDAG for Los Peñasquitos Lagoon Bridge Replacements Project totaling 25,000,000 for the complete project. However, this Exhibit A-2 was not executed to allow for the receipt of contractor cost proposals that would validate the total project cost estimate. Subsequently, SANDAG conducted a competitive January 19, 2017 Board Meeting Staff Report No.: SR-17-01-017 procurement for construction of the four bridges, which resulted in proposed construction costs higher than the originally estimated costs, increasing the total project cost estimate from $25,000,000 up to $30,602,400. At the October 16, 2014 NCTD Board meeting, the Board authorized the Executive Director to execute Exhibit A-2, Los Peñasquitos Lagoon Bridge Replacements Project, pursuant to Addendum 18 to the Master MOU with SANDAG for totaling 30,602,400 for the complete project. This Exhibit A-2 was executed on November 21, 2014. SANDAG bid the construction for this project on August 25, 2014, and awarded the 21.8 million construction contract to Skanska as part of the total $ 30.6 million project cost estimate. Notice to proceed was issued to Skanska on December 19, 2014, and the first recorded working day was January 5, 2015. The project was originally intended to be constructed primarily during absolute work windows AWWs), which allow for set durations for construction without train movement along the corridor. However, due to the timing of the project and concerns about impacting revenue service operations, it was determined that the project should utilize the Form B construction approach which requires significantly more flagging activity and cost. The Board, at its June 16, 2016 meeting, further authorized the Executive Director to execute Revision 1 to Exhibit A-2, Los Peñasquitos Bridge Replacements Project, pursuant to Addendum 18 to the Master MOU between SANDAG, MTS, and NCTD in an amount not-to-exceed $ 6,646,683 with a total project cost not-to-exceed $37,249,083 to support these increased project costs. NCTD and SANDAG did not execute Revision 1 to Exhibit A-2. On November 9, 2016, SANDAG provided NCTD updated costs for completing the Los Peñasquitos Bridge Replacements. The cost increase totals $1,999,267 and includes the cost for post-construction environmental mitigation, relocation of the high-water detector, relocation of PTC fiber, and costs associated with a professional evaluation of the cause of bridge settlement. As a result of this cost increase, the total project cost excluding contractor claims and extra work is $39,248,350. As the Board is aware, the project experienced significant challenges that required additional work to address bridge settlement and repairs while under construction. SANDAG has therefore requested that NCTD identify partial funding of $7,500,000 related to additional work. NCTD has reviewed and identified funding from the San Onofre to Las Pulgas Double-Track Phase 2, San Onofre Bridge at Milepost 209.9, and Rose Canyon Bridge replacement projects that will be reallocated to the Los Peñasquitos project. No new funding source is currently proposed. The reallocation of these funds will result in the delay of these projects until such time that this matter is resolved and/or funds are recovered. The following tables break down the revised project cost estimates and funding plans for the Los Peñasquitos Bridges Project as of the this January 2017 proposed revision. January 19, 2017 Board Meeting Staff Report No.: SR-17-01-017 Cost Estimates Description 10/17/2013 Administration Communications Engineering & Design Construction Management Professional Services Construction 10/16/2014 938,000 1,099,400 1,725,465 1,955,890 63,000 63,000 63,000 138,000 775,000 775,000 1,281,400 1,275,441 3,406,000 3,406,000 9,199,674 9,246,610 41,000 41,000 20,000 170,000 22,932,000 24,752,000 25,442,409 106,000 106,000 Contingency 25,000,000 1,020,000 2,180,000 207,544 30,602,400 37,249,083 Funding for Additional Work Funding Source 1/19/2017 19,671,000 Environmental Total 6/16/2016 39,248,350 7,500,000 NCTD Funding FTA TIGER Grant SANDAG Funding 14,000,000 Total Funding 14,000,000 STA (prior year) 3,049,481 3,049,481 TDA 4.0 (prior year) 4,727,079 4,727,079 FY13 5307 CA-90-Z008 2,190,693 2,190,693 FY14 5307 CA-90-Z091 7,579,073 7,579,073 FY17 5307 3,498,725 3,498,725 FY18 5307 501,275 501,275 700,711 2,702,023 874,681 874,681 FY14 TDA 4.0 2,001,312 FY17 TDA 4.0 FY18 TDA 4.0 Total 9,777,872 125,319 125,319 29,470,477 39,248,350 Reallocation of Existing Project Funds 7,500,000 Staff recommends the Board: Authorize the Executive Director to execute Revision No. 1 to Exhibit A-2, Los Peñasquitos Lagoon Bridge Replacements Project, pursuant to Addendum 18 to the Master Memorandum of Understanding ( MOU) between the San Diego Association of Governments ( SANDAG), San Diego Metropolitan Transit System MTS), and North County Transit District (NCTD), with a total project cost not-toexceed $39,248,350, including: 1. An amount not-to-exceed $ 1,999,267 for post-construction environmental mitigation, relocation of the high-water detector, relocation of Positive Train Control fiber, and costs associated with a professional evaluation of the cause of bridge settlement; and 2. Reallocate funding of up to $7,500,000 from specified projects for additional work. January 19, 2017 Board Meeting Staff Report No.: SR-17-01-017 ATTACHMENT: FISCAL IMPACT: COMMITTEE REVIEW: STAFF CONTACT: None The total cost of this project is $ 39,248,350; however SANDAG is funding 14,000,000 through a Federal Transit Administration ( FTA) Transportation Investment Generating Economic Recovery (TIGER) grant making the fiscal impact of the project $ 25,248,350. The fiscal impact of this staff report to NCTD is 8,645,949. The NCTD funded portion of the project is funded from Federal Transit Administration ( FTA), State Transit Assistance ( STA), and Transportation Development Act grant funds, which have a combined available balance for this project of $25,248,350. If the Board approves this action, the balance of this project funding will be reduced to $0. The existing allocations for the San Onofre to Las Pulgas Double-Track Phase 2, San Onofre Bridge at Milepost 209.9, and Rose Canyon Bridge replacement projects will be reallocated to fund the additional work of $7,500,000. None Andrew Bohnert, Chief Development Officer E-mail: abohnert@nctd.org Phone: 760-966-6683 January 19, 2017 Board Meeting Staff Report No.: SR-17-01-017 Agenda Item # 18 AUTHORIZE THE EXECUTIVE DIRECTOR TO AWARD CONTRACT NO. 17033-OS TO MV TRANSPORTATION, INC. FOR COMBINED FIXED ROUTE BUS, ADA PARATRANSIT, AND SPECIALIZED TRANSPORTATION OPERATIONS AND MAINTENANCE SERVICES Time Sensitive X Consent STAFF RECOMMENDATION: Authorize the Executive Director to award Contract No. 17033-OS to MV Transportation, Inc. for Combined Fixed Route Bus, ADA Paratransit, and Specialized Transportation Operations and Maintenance Services for a base period of 7 years with the option to execute a three (3) year extension in an amount not to exceed $ 453,821,363. Staff will return to the Board for approval prior to the execution of the option period if it determines that the exercise of the option is in NCTD’s best interest. BACKGROUND INFORMATION: The BREEZE fixed route, FLEX route deviation, and LIFT ADA paratransit operations and maintenance services contracts expire on June 30, 2017. NCTD developed a detailed scope of work to support the procurement of a contractor to provide safe, reliable and efficient services for NCTD customers. Following is a general summary of the scope of work. Summary of Scope of Work The Contractor is required to implement and maintain a strong and positive safety and customer service culture for its operations that is incorporated and integrated within the overall NCTD service network. The detailed scope of work and requirements were provided in the request for proposals (RFP) and the final contract documents. In summary, the Contractor is responsible for: BREEZE, LIFT, and FLEX Transportation (Operators, Reservationists, Field Supervision), Fleet Maintenance (non-revenue and revenue) Dispatch Services o Division Dispatch ( Operator reporting, fitness for duty, service management during non-peak periods not covered by Operations Control Center (OCC) Dispatch) o Service Management Dispatch within NCTD’s OCC Facility and Support Equipment maintenance The Contractor is required to develop and maintain safety, operations and maintenance plans that specifically address the goals and requirements associated with NCTD operations and that such plans and the execution of such plans and operations are overseen with a documented and robust oversight program, quality assurance program and training program provided and administered by the Contractor. January 19, 2017 Board Meeting Staff Report No.: SR-17-01-018 The detailed scope of work further detailed that the successful proposer is responsible for performing in accordance with contractual and regulatory requirements and understand and share NCTD’s high performance expectations which include the following: 100% of all trips are operated as scheduled, Customers will feel welcomed and appreciated when using NCTD services, Employees will feel respected, have a sense of teamwork and take pride in the performance of their duties, and A safety and operational culture that is steeped in continuous improvement. The scope of work placed additional emphasis on driver productivity and retention, training, safety, and customer service. Liquidated damages were included in the RFP to support the achievement of NCTD goals related to service quality and service efficiency. The scope of work and final contract also includes specific provisions for the following. The use of new technologies to improve contractor oversight and to improve the customer riding experience. For example, NCTD is procuring mobile data terminals will improve the efficiency of trip scheduling/routing and ontime performance and applications to support web and telephone scheduling for paratransit operations that will reduce the volume of telephone calls and the need for customers to call in during business hours to reserve or cancel a trip. Introduction of enhanced service management staffing to support service connections between buses and trains and prevention/mitigation of service disruptions. Procurement Approach and Major Milestones The procurement was structured to comply with the Federal Transit Administration FTA") procurement requirements, using a two-phased, best value selection method under which NCTD will award the contract to the most qualified proposer which provides the best combination of technical quality and price, based upon the criteria set forth in the Request for Proposals ("RFP"). The following are a few key highlights of the procurement process: NCTD published a Notice of Opportunity on July 1, 2016 seeking industry feedback. The RFP was issued for formal solicitation on August 19, 2016, incorporating industry feedback. All interested proposers were invited to participate in an extensive series of site visits August 29 – 31, 2016, to assess NCTD’s assets, i.e., rolling stock, equipment and infrastructure, and perform maintenance records reviews and training records reviews. All questions or clarifications related to the RFP were due to NCTD by September 21, 2016. On October 27, 2016, NCTD received 4 proposals from; First Transit, TransDev, McDonald Transportation, and MV Transportation. NCTD evaluated the proposals from October 28 thru November 10, 2016. January 19, 2017 Board Meeting Staff Report No.: SR-17-01-018 During the week of November 14, 2016, NCTD conducted presentations and interviews separately with each proposer, giving equal time to each. The presentation portion allowed each proposer to highlight aspects of its Operations and Management Proposal, and the interview portion allowed NCTD to ask each proposer about its Operations and Management Proposal and evaluate the proposed management team in person. NCTD was notified on November 11, 2016, of the inadvertent disclosure of the Fleet Maintenance sections of all four proposals to First Transit. In order to ensure the continued equality among the proposers, NCTD released all disclosed documents to all of the proposers. On November 29, 2016, the proposers submitted their revised cost proposals on updated Cost Forms which allowed NCTD to perform a true apples-to-apples comparison of the proposed pricing using the current agreed upon wages afforded to represented employees in collective bargaining agreements. On December 1, 2016, following the Source Selection Committee ( SSC) decision on the highest ranked proposer, NCTD issued a notice of intent to award to MV Transportation, Inc. NCTD began negotiations with MV Transportation, Inc. on December 7, 2016 and completed negotiations on January 5, 2017. At the request of the proposers, NCTD extended the protest deadline by a week to December 22, 2016. NCTD received two (2) protests on December 22, 2016, from First Transit and TransDev, respectively. The protest from TransDev was withdrawn without a formal response from NCTD. NCTD provided a formal response to the protest filed by First Transit. After receiving NCTD’s response, First Transit elected not to pursue the protest further. Labor Provisions and Workforce Protection In compliance with California Labor Code sections 1070-1074 and the provisions of NCTD’s Master Agreement with the FTA, the RFP mandates that the operator hire the current workforce in seniority order and that the existing collective bargaining agreements remain in effect until new labor agreements are negotiated. Additionally, the RFP also requires the new Contractor to: Establish a minimum number of positions to support the work associated with the RFP and grant hiring priority to workers covered under the current collective bargaining agreements, subject to the employees meeting the hiring and job requirements established by the new Contractor. Recognize the seniority rights of workers in accordance with existing seniority rosters. Provide a minimum composite wage and benefit value in an amount that is equivalent to the current collective bargaining agreements. Negotiate with the Union over a progressive structure of wages, starting from the current levels as specified in the collective bargaining agreement. Establish employee health, welfare and retirement benefits that are, at a minimum, consistent with the levels provided in the current collective bargaining agreement. Negotiate a procedure for the consideration, appeal, and resolution of grievances. January 19, 2017 Board Meeting Staff Report No.: SR-17-01-018 Negotiate a procedure for employee dismissal and other discipline that provides advance written notice to the employee, an opportunity for response before a proposed disciplinary action becomes final, and a process for appeal. Evaluation Process As noted, the Proposals were received on October 27, 2016 in separate parts: (i) the Technical Proposal, and (ii) the Financial/Price Proposal. NCTD established a comprehensive procurement evaluation process which was approved by the Executive Director. The Executive Director appointed the Evaluation Team, made up of the Source Selection Committee and supporting Evaluation/Technical Teams. The Source Selection Committee consisted of: the Chief Operations Officer-Bus; Chief of Safety; Chief of Administration; Manager of Service Planning; and Paratransit Program Administrator. All members of the Evaluation Team were bound by strict confidentiality obligations and submitted conflicts of interest forms. The Source Selection Committee evaluated all Evaluation Factors set out in the Technical Proposal (detailed below). One of the unique elements evaluated as part of this solicitation was the inclusion of Productivity Commitments related to personnel efficiency/productivity and paratransit customers carried per revenue hour. This Productivity Commitment was the basis for the labor calculation in the cost model and determined the number of employees each proposer would have to hire to perform the scope of work outlined in RFP 25944. The Contractor is at risk if the personnel do not meet the productive standards/work hours proposed by the Contractor. The productivity for paratransit customers carried per revenue hour establishes a minimum level of productivity that the Contractor is required to achieve in the provision of LIFT paratransit service. After completing the Technical Proposal evaluation, the Source Selection Committee evaluated the Financial/Price Proposals. The Source Selection Committee was supported by the Evaluation Teams ( i.e., subject matter experts) throughout the evaluation process. Pursuant to the RFP, when determining best value, the Technical Proposal was given greater emphasis than the Financial/Price Proposal. Evaluation Criteria and Weighting The following six proposal areas, called "Evaluation Factors," which were weighted in the following order of importance: 1. Safety and Regulatory Compliance (20%) 2. Technical Approach (20%) 3. Productivity Commitment (15%) 4. Qualifications and Experience (10%) 5. Past Performance (10%) 6. Labor Code Compliance (10%) January 19, 2017 Board Meeting Staff Report No.: SR-17-01-018 Financial/Cost Proposal The Financial/Price Proposal included each Proposer's firm-fixed price for its performance of the contract, with a detailed cost that included cost categories for labor and materials, as well as a separate overhead proposal for each. In addition to the Source Selection Committee, the Financial/Price Proposals were also evaluated by the Finance Division at NCTD. The evaluation methodology was based on the FTA's Best Practices Procurement Manual, which emphasizes responsibility ( i.e., financial capacity), reasonableness and balance ( i.e., consistency, cost line-items total correctly, costs not front-loaded or back-loaded). To assist in assessing the Financial/Price Proposals, an Independent Cost Estimate the "ICE") was developed by NCTD staff in advance of the solicitation of proposals using publicly available industry information, NCTD documentation on its operations and information from other data sources. The ICE was an estimate of the cost to operate and manage the fixed route, route deviation, and paratransit services in accordance with the requirements of the RFP, and was used in evaluating the reasonableness and balance of the Financial/Price Proposals. The ICE was developed using the same Cost Forms that would later be submitted by Proposers. The Cost Forms are a series of pricing spreadsheets –separated into forms for Labor and Materials, as well as pricing for optional work (such as major overhauls). The Financial/Price Proposal evaluation process involved two submissions: 1. Initial Price Proposals (10/27/16): The initial Price Proposals, submitted with the Technical proposals, were based upon staffing levels and wage rates in effect on July 1, 2017. 2. Clarification of Price Proposals ( 11/29/16): Finally, Proposers were provided a final opportunity to submit a clarification to their initial proposal for an apples-to-apples comparison. Final Scores and Ranking On December 2, 2016 the Source Selection Committee finalized the ranking of the proposers as follows: Points Possible MV First McDonal Transit d TransDev Qualifications and Experience 10.00 5.80 4.80 2.50 5.90 Past Performance 10.00 5.46 5.20 4.07 5.86 Technical Approach 20.00 11.86 9.54 8.36 10.10 Productivity Commitment 15.00 6.00 5.70 6.60 7.30 Safety and Regulatory Compliance 9.30 8.40 9.50 7.70 Labor Code Compliance 10.00 10.00 10.00 10.00 10.00 Cost 15.00 14.45 15.00 14.39 13.46 100.00 62.87 58.64 55.41 60.32 Total January 19, 2017 Board Meeting 20.00 Staff Report No.: SR-17-01-018 Financial/Price Analysis All four proposals were found to be responsible, reasonable and balanced. The following tables summarize the Financial/Price Proposals: Proposer First Transit MV Transportation McDonald Transit Total Cost Mobilization year 1 thru year 10) 434,108,367 ($ Variance from NCTD ICE 3,922,635) - Variance From NCTD ICE 0.90% 450,585,653 $ 12,554,651 2.79% 452,600,753 $ 14,569,751 3.22% 483,819,563 $ 45,788,561 9.46% TransDev The table highlights the following (figures are rounded): First Transit price of $434 million is the lowest cost and closest to NCTD’s independent cost estimate, for that, they received the total number of points available for this section of scoring. MV Transportation had the 2nd lowest price, but had a technically superior proposal, thus creating the best value to NCTD. All four Price Proposals are in a reasonable range. The ICE is sound, and supports the reasonableness of all four Proposals. Attachment 18B provides the final 10-year price ( including mobilization costs) of 447,948,756 negotiated between MV Transportation and NCTD. Additionally, NCTD as part of the solicitation obtained pricing for engine and transmission replacements/rebuilds and has included $ 5,872,607 in the total authorization requested by the Board for the 10-Year term of the base contract which results in the total not to exceed request of 453,821,363. NCTD has the option of directing MV Transportation to provide these service when needed based on the competitive pricing submitted during the RFP process or to separately procure these services. Staff Recommendation The Source Selection Committee determined that MV Transportation’s, Inc. proposal presents the best combination of technical quality and price, and is the most advantageous to NCTD. The Source Selection Committee, therefore, recommended to the Executive Director that the contract be awarded to MV Transportation, Inc. The Executive Director concurs with the Source Selection Committee's recommendation and recommends that the Board authorize the Executive Director to award Contract No. 17033-OS to MV Transportation for combined BREEZE, LIFT and FLEX Operations and Maintenance services for a total not-to-exceed amount of $453,821,363, which includes the three year option period should it be exercised, and all costs related to service, major overhauls, maintenance of facilities. It is further recommended that award of the contract be made promptly so that MV Transportation can immediately commence mobilization efforts that are essential so that there is no delay in transitioning operations from First Transit to MV Transportation on July 1, 2017. Any delay in initiating mobilization activities could adversely impact the provision of services. January 19, 2017 Board Meeting Staff Report No.: SR-17-01-018 Should the Executive Director determine that it is in NCTD’s best interest to exercise the option to extend the term of the contract beyond the 7-year base period, the Executive Director will seek authorization from the Board of Directors. ATTACHMENT: FISCAL IMPACT: COMMITTEE REVIEW: STAFF CONTACT: 18A – Draft Contract No. 17033-OS to MV Transportation, Inc. 18B – Table – Final negotiated price 18C – Detailed Presentation The total fiscal impact of this proposed contract action is $453,821,363 over ten 10) years, should all options be exercised. The FY2017 proposed contract action supports mobilization activities in the amount of $2,074,270, from January 2017 to June 2017, and is included as an additional expenditure in the Proposed Amendment to the FY2017 Operating Budget and FY2017-2021 Capital Improvement Program. The FY2017 mobilization expenditures will be funded with non-federal, local operating monies in accounts 130/220.50814*, 130/200.50813* and 100/200.50816*. Future expenditures for the base services contract of seven 7) years from FY2018 to FY2024 in the amount of $301,948,418, as well as the three ( 3) additional option years from FY2025-FY2027in the amount of 149,798,674, will be programmed in future fiscal year operating budgets as required. Federally eligible preventive maintenance activities will be funded with Federal Transit Administration (FTA) Preventive Maintenance (PM) funds matched with local Transportation Development Act (TDA) monies. None Damon Blythe, Deputy Chief Operations Officer-Transit Operations Planning E-mail: dblythe@nctd.org Phone: 760-966-6708 January 19, 2017 Board Meeting Staff Report No.: SR-17-01-018 ATTACHMENT 18A RFP 25944 COMBINED FIXED ROUTE BUS, ADA PARATRANSIT SERVICE OPERATIONS, AND SPECIALIZED TRANSPORTATION SERVICES OPERATIONS AND MAINTENANCE SERVICES AGREEMENT BETWEEN NORTH COUNTY TRANSIT DISTRICT AND MV TRANSPORTATION, INC. AGREEMENT NUMBER: 17033 This Agreement (“ Agreement”) is made and entered into by and among the North County Transit District (“NCTD”) a California public agency organized under Public Utilities Code sections §125000, et. seq., and MV Transportation, Inc. (“ Contractor”). Both NCTD and Contractor are collectively referred to herein as “ Party” or “Parties”. RECITALS 1. NCTD is in need of a Contractor to provide fixed route bus service, ADA paratransit services, specialized transportation, and limited facilities maintenance services in a combined operations and maintenance services contract for NCTD ("Work"). 2. Contractor is duly-licensed and has the necessary experience and qualifications to provide such services and has submitted a proposal to provide the services dated October 27, 2016 and a Negotiated Final Offer dated January 10, 2017. 3. The Parties’ desire by this Agreement to establish the terms for NCTD to retain Contractor to provide the Work described herein. AGREEMENT NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: 1) Order of Precedence This Agreement incorporates, by reference, the below documents in their entirety. In addition, in the event of inconsistency or ambiguity in this Agreement, the following order of precedence shall apply: 2) a. This Agreement b. Conformed Request for Proposal ( RFP) No. 25944 ( attached as Exhibit 1, which includes the Conformed Scope of Work) c. Negotiated Final Offer (attached as Exhibit 2) d. Contractor’s Proposal dated October 27, 2016 (attached as Exhibit 3). Services Contractor shall provide NCTD with the services described in the Scope of Work (“SOW”) within Exhibit A. Contractor agrees to provide services to NCTD in accordance with the terms and conditions of this Agreement, and to exercise the degree of professional care, skill, efficiency and judgment ordinarily employed by Contractor with expertise fixed-route bus service, ADA paratransit service, specialized transportation, and limited facilities maintenance services. Contractor represents that it has in effect all licenses, registrations, and certifications in good standing that are required under applicable law and regulations to perform these services, and agrees to retain such licenses, registrations and certifications in active status throughout the duration of this Agreement. Page 1 of 16 3) Period of Performance The Agreement will remain valid for a seven (7) year term beginning upon full execution of agreement and ending June 30, 2027, with an additional three (3) year option to be exercised upon mutual agreement of NCTD and MV Transportation, Inc. 4) Time of Performance As time is of the essence, Contractor shall perform its services hereunder in a prompt and timely manner and in accordance with the project schedule, as set forth in Exhibit A, SOW within the RFP 25944 (Exhibit 1), the Contractor’s Proposal and Negotiated Final Offer. In the event of a conflict between those documents regarding the project schedule, the Order of Precedence shall apply. Neither NCTD nor Contractor shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non -performing party. For purposes of this Agreement, such circumstances include, but shall not be limited to, abnormal weather conditions, floods, earthquakes, fire, epidemics, war, riots and other civil disturbances, strikes, lockouts, work slowdowns, and other labor disturbances, sabotage or judicial restraint. Should such circumstances occur, the non-performing party shall, within a reasonable time of being prevented from performing, give written notice to the other party describing the circumstances preventing continued performance and the efforts being made to resume performance of the Agreement. 5) Compensation a. Maximum Compensation: The maximum compensation for baseline services rendered by Contractor shall not exceed the sum of three hundred million ninety-six thousand nine hundred eighty dollars, ($ 300,096,980.00) for the base 7 year term , including mobilization, as set forth in Exhibit 2. The three (3) year optional term, if exercised, is valued at one-hundred forty-seven million, eighthundred fifty-one thousand, seven-hundred seventy-five dollars ($ 147,851,775.00), however this option will be exercised upon mutual agreement of NCTD and MV Transportation, Inc. b. If the service plan and/or actual service for any contract year exceeds the baseline service levels for BREEZE, LIFT and FLEX respectively as outlined in Exhibit 2, the Parties will execute a Supplemental Agreement. c. Method of Payment: The method of payment is to be reflective of the Compensation Methodology attached as Exhibit 4 Cost Principles and Procedures: The Contractor agrees that the Contract Cost Principles and Procedures, outlined at 48 CFR, Chapter 1, Part 31 (Federal Acquisition Regulations) shall be used to determine whether individual items of cost are allowable. The Contractor also agrees to comply with Federal procedures in accordance with 49 CFR Part 18, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments. 6) Invoicing a. Contractor shall be paid for services once rendered. Advance payments are prohibited. b. NCTD shall make payment to the Contractor within thirty (30) days from the date of the invoice and after confirmation of services performed or milestones achieved. c. Invoicing shall not be submitted more often than monthly. d. Invoices may be mailed or delivered to 810 Mission Avenue, Oceanside, CA 92054, Attn: Accounts Payable or emailed to apclerks@nctd.org. Only one method of delivery may be used for the life of the Agreement. e. Contractor is to submit invoices in a form that clearly identifies the date that the work was completed, a brief description of the work performed, and the amount due. Page 2 of 16 7) f. Contractor is to submit back -up documentation to support authorized expenses. These items, if applicable, must be attached to each invoice. g. No payment will be made for work performed by any classification not listed in the original Agreement or added to the Agreement by NCTD or for work performed after the performance period. h. The format of invoice to be submitted is subject to change based on the discretion of NCTD. i. All invoices must reference the Agreement number and, if applicable, the Task Order number that authorized work. j. No payment will be made for any work performed outside of the performance period of the Agreement. k. If the Contractor fails to submit a deliverable required by the Agreement, payment shall not be made until the deliverable is received. Availability of Funding NCTD’s obligation for payment of any agreement beyond the current fiscal year is contingent upon the availability of funding from which payment can be made. NCTD shall, at its sole discretion, have the right to terminate or suspend the agreement or reduce compensation and service levels or statement of work proportionately upon sixty (60) days’ written notice to the Contractor in the event that federal, state or other funding for the resulting agreement ceases or is reduced prior to the ordinary completion date of the term of the resulting agreement. In the event of reduction of funding for the agreement, NCTD and Contractor shall meet within ten (10) days of written notice to renegotiate the agreement based upon the modified level of funding. In this case, if no agreement is reached between NCTD’s and Contractor within ten (10) days of the first meeting, either party shall have the right to terminate the agreement within ten ( 10) days written notice of termination. In the event of termination of the agreement in accordance with the terms of this section. Contractor shall be entitled to any payment offset to which NCTD may be entitled, for damages or otherwise, under the terms of the agreement. In the event of termination of the agreement pursuant to this section, in no event shall Contractor be entitled to any loss of profits on the portion of the agreement so terminated, or to other compensation, benefits, reimbursements or ancillary services other than as expressly provided herein. 8) Insurance Insurance shall meet at minimum the requirements as illustrated in Section 04.02 of Exhibit A. Proof of insurance shall be submitted to NCTD within five (5) working days of NCTD’s request and is required before the commencement of work. 9) Organization and Communication Contractor shall assign Erin Rogers as Project Manager who can be reached at 714.856.8707 or by email at erin.rogers@mvtransit.com . The Project Manager shall not be removed from the Work or reassigned without the prior written consent of NCTD. NCTD shall assign Mike Wygant as Project Manager who can be reached at 760.966.6594 or by email at mwygant@nctd.org to provide direction, coordinate procedures and manage all performance and technical issues of the Agreement. The key personnel indicated in the Contractor’s proposal shall perform the Work. Replacements required due to unforeseen circumstances may be accepted by NCTD. However, such acceptance will not imply that NCTD has evaluated the replacement to be equally, less, or more qualified than the key person replaced. Key personnel identified in the Proposal shall not be replaced unless such replacement is approved in advance by NCTD in writing, such approval not to be unreasonably withheld, conditioned, or delayed. Resumes of replacements shall be submitted to NCTD with all applicable information. NCTD will not compensate Contractor for work performed by unauthorized staff. Additional Special Contractors may be employed under this Agreement. Special Contractor is defined as non-full time employees of the Contractor contracted for a specific assignment for a specific period of time. Special Contractor shall be added only by amendment to this Agreement. An amendment to the Page 3 of 16 Agreement shall be prepared by NCTD and executed by both Parties before performance of services or NCTD will not be required to pay for the special Contractor expenses incurred. NCTD’s Contracting Officer identified below is solely responsible for the business relationship with the Contractor and for contractual issues and changes, the Contracting Officer is the only one authorized to receive from or transmit to the Contractor, written correspondence regarding any questions, contractual clauses, items, disputes, requests, etc., relating to the contents of the Agreement, all of which are defined as Official Correspondence. NCTD North County Transit District 810 Mission Avenue Oceanside, CA 92054 CONTRACTOR MV Transportation, Inc. 5910 N. Central Expressway, Suite 1145 Dallas, TX 75206 Attn: Garth Kwiecien Email: gkwiecien@nctd.org Tel: 760.967.2857 Attn: Erin Rogers Email: erin.rogers@mvtransit.com Tel: 714.856.8707 Transmittal of Official Correspondence by either party may be by email or the USPS, if desired, use of USPS may be by certified mail, return receipt requested, postage prepaid method. 10) Changes to the Agreement If a revision to the content of the Agreement is requested by Contractor or NCTD and informal consultations with the other party indicate that a change is warranted, it shall be processed in the following manner: a. A letter outlining the requested changes shall be forwarded to the NCTD Contracting Officer by the Contractor (see agreement section titled, “Organization and Communication”). b. A Supplemental Agreement shall be prepared by NCTD and executed by both Parties before performance of any revised services or adjustment of rates and may require Board of Directors Board”) approval. Such amendment shall not render ineffective or invalidate unaffected portions of this Agreement. Payment may be delayed or denied for work performed without an authorizing supplemental agreement. 11) Amendment This Agreement shall only be amended, modified or changed in writing, executed by authorized representatives of the Parties, with the same formality as this Agreement was executed. Any attempt to amend, modify, or change this Agreement by either an unauthorized representative or unauthorized means shall be void. 12) Labor Code Requirements This Agreement is subject to the Federal Transit Administration (FTA) requirements set forth in Section 06 of Exhibit A. To the extent that such FTA requirements do not directly apply to the Work, Contractor shall ensure that the Work, including but not limited to any and all work-product created under this Agreement, shall permit compliance with those FTA requirements. Compliance with Labor Code Requirements/Prevailing Wages: The Work, or a portion of the Work required under this Agreement, may fall into the category of service deemed to be public works for Federal and State requirements. If the Work is being performed as part of an applicable “public works” project, as defined by Federal and State Laws, and if the total compensation is in excess of State and/or Federal Prevailing Wage: Contractor, and its subcontractors ( when applicable), will be required to comply with all of the terms and conditions ( including Federal and State General Prevailing Wage requirements) prescribed for the performance of public works as defined in applicable law to the extent applicable. In all instances where Federal and State Prevailing Wages for a given craft differ, the higher Prevailing Wage shall be paid. It shall be mandatory upon Contractor and its subcontractors ( when Page 4 of 16 applicable) to pay not less than the said specified rates to all workers employed by them in the performance under the Agreement to the extent required. Copies of the Prevailing Wage Rates are on file at the NCTD Procurement & Contract Administration Division located at 810 Mission Avenue, Oceanside, CA and are available upon request. Requests must specifically state which prevailing wage rates are required. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification, or type of worker needed to execute the Work available to interested parties upon request, and shall post copies at the Contractor’s principal place of business and at the project site. Contractor shall defend, indemnify and hold the NCTD, its elected officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. Labor Compliance – Prevailing Wage Requirements: Prevailing Wage Determinations can be accessed at the below websites: California General Prevailing Wage Determinations: http://www.dir.ca.gov San Diego County Prevailing Wage Determinations: http://www.dir.ca.gov/dlsr/PWD/ Davis-Bacon Prevailing Wage Determinations: http://www.gpo.gov/davisbacon/allstates.html; or in Exhibit A hereto. 13) Federal Requirements Inasmuch as the services herein described are to be purchased with Federal assistance authorized by the Department of Transportation and Federal Transit Administration ( FTA) laws and regulations codified at 49 USC § 5301 et seq.; or Title 23, United States Code (Highways); or the Transportation Equity Act for the 21st Century, Pub. L. 105-178, June 9, 1998, 23 USC § 101 note, as amended by the TEA-21 Restoration Act, Pub. L., 105-206, July 22, 1998, 23 USC § 101 note, (TEA-21), Moving Ahead for Progress in the 21st Century Act (MAP 21), Pub. L. 112-141, July 6, 2012, and other further amendments thereto, Fixing America’s Surface Transportation (FAST) Act, Public Law No: 114-94 , as may be amended, or other Federal enabling laws administered by FTA and guidance thereto, including without limitation FTA Circular 4220.1F and amendments thereto, the Contractor will be required to comply with all terms and conditions prescribed for third party contract in a grant contract between the United States Department of Transportation and NCTD and to flow all applicable federal provisions down to Subcontractors at every tier. Federal provisions applicable to this Agreement and third party contracting in general and Federal Davis Bacon Wage Requirements are provided in Exhibit 1, hereto. Specific guidelines shall be those prescribed by "Federal Transit Administration Master Agreement" Form FTA-MA) 49 C.F.R., Part 18, Federal Transit Administration (FTA) Circular 4220.1 F, " ThirdParty Contracting Requirements" and OMB Circular A-1 02 " Uniform Requirements for Grants and Cooperative Agreements with State and Local Governments”. 14) Sanctions, Fines and Additional Costs by Court Rule The Contractor will be responsible for sanctions, fines, interest and any other additional costs imposed by Court Rule, which results from negligence, mismanagement and/or delays that are not directly and unequivocally attributable to NCTD employees or agents. 15) Compliance with Law Contractor shall comply with all applicable laws, ordinances, codes and regulations of the Federal, State and local governments relating to the performance of the Work, including any changes to such applicable laws, ordinances, codes and regulations of the Federal, State and local government during the performance of the Work. To the extent that the Federal requirements provided in herein do not directly apply to the Work, Contractor shall ensure that the Work, including but not limited to any and all work-product created under this Agreement, shall permit compliance with those requirements. 16) Escalation of Issues In the event issues arise that have not been satisfactorily addressed by the Project Managers of the Page 5 of 16 Contractor and NCTD named above and NCTD’s Contracting Officer, the issue is to be escalated in accordance with the following list and a lack of resolution at one level of the list will require that the issue be elevated to the next level until such resolution is achieved: NCTD Samuel Elmer Chief Procurement & Contract Administration Officer CONTRACTOR Fadi Chakbazof Senior Vice President, Southwest Region 17) Liability And Indemnification This liability and indemnification section shall apply to all claims, suits actions, lawsuits of every kind and description for liability or loss filed in connection with the Contractor’s work pursuant to the Contract. A. Indemnification 1) Indemnity. Contractor shall, to the fullest extent permitted by law, hold harmless, protect, defend and indemnify NCTD and its Board of Directors and each member of the Board, officers, agents and employees, representatives and their successors and assigns (“NCTD and/or “ Indemnified Parties”), from and against any and all losses, liabilities, claims, suits, damages, expenses and costs including reasonable attorney's fees and costs, and expert costs and investigation expenses arising out of or attributable, in whole or in part, by the performance or failure to perform by Contractor, its employees, representatives, subcontractors, or agents regardless of whether or not such claim, loss or liability is caused, in part by a party indemnified hereunder. 2) General Indemnity Provisions. This indemnity is in addition to any other rights or remedies which NCTD may have under the law or this Agreement. In the event of any claim or demand made against any party which is entitled to be indemnified hereunder, NCTD may, at its sole discretion, reserve, retain or apply any monies due to Contractor under this Agreement for the purpose of resolving such claims; provided however, that NCTD may release such funds if Contractor provides NCTD with reasonable assurances of protection of the NCTD's interest. The NCTD shall, in its sole discretion determine whether such assurances are reasonable. Contractor agrees that its duty to defend the Indemnified Parties arises upon an allegation of liability based upon the performance of services under this Agreement by CONTRACTOR, its officers, agents, representatives, employees, subContractors, or anyone for whom Contractor is liable and that an adjudication of Contractor's liability is not a condition precedent to Contractor's duty to defend. Contractor shall defend, at Contractor’s own cost, expense and risk, with counsel of Contractor’s choosing with approval of NCTD, which shall not be unreasonably withheld, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the Indemnified Parties. To the extent of its liability, Contractor shall pay and satisfy any judgment, award or decree that may be rendered against the Indemnified Parties, in any such suit, action or other legal proceeding. Contractor shall reimburse the Indemnified Parties for any and all legal expenses and costs incurred by each of them in connection with enforcing the indemnity herein provided. Contractor acknowledges that the indemnifications contained herein are intended, in part, to operate as indemnifications under Section 9607(e)(1) of the Comprehensive Environmental Responses, Compensation, and Liability Act (42 USC Section 9601, et seq.) as may be hereinafter amended. Contractor agrees to indemnify and defend NCTD in the event NCTD withholds production of records which Contractor has marked " Confidential” “ Trade Secret" “ Proprietary”, or similar designations, that are responsive to a Public Records Act request pursuant to California Government Code section 6250. et. seq. or a Freedom of Information Act request. Contractor shall defend, indemnify and hold NCTD, its elected officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or Page 6 of 16 interest arising out of any failure or alleged failure to comply with Prevailing Wage Laws, if applicable. B. Handling of Claims. 1) Allocation of Liability. The Contractor shall assume liability for NCTD in all claims, lawsuits or actions against NCTD and the Contractor as of the effective date of the Agreement. NCTD will not hold harmless or indemnify the Contractor for any liability whatsoever. 2) Contractor Duties. The Contractor further agrees to investigate, handle, respond to, provide defense for and defend any such claims, at its sole expense and agrees to bear all other costs and expenses related thereto, whether or not it is alleged or determined that the Contractor was negligent, and without regard to whether such claim is groundless, false, or fraudulent. 3) Notice. NCTD agrees that it will notify the Contractor in writing within ten (10) days of receipt or notice of any claim described in subsection (a); provided that the failure of NCTD to so notify the Contractor shall not relieve the Contractor of any of its obligations under this Section. 4) Assumption of Defense. The Contractor shall have the right to assume the defense of all claims that might be threatened or instituted, and agrees that it will assume all responsibility for the investigation, handling, and defense of such claims. 5) Assistance by NCTD. NCTD shall provide such assistance (except financial) for the defense of any claims as is reasonably required by the Contractor. NCTD shall not make any admission of liability with respect to a claim or seek to settle or compromise a claim without the prior written consent of the Contractor. The Contractor agrees to inform NCTD as to all correspondence and proceedings in respect to any claim as to which indemnity is sought and to consult with NCTD with respect to all matters relating to any claim. 6) Claims Review Meetings. NCTD and the Contractor shall hold on-site Claims review meetings on a quarterly basis. C. Pollution Liability The Contractor shall at its sole expense, indemnity, defend and hold harmless, NCTD, its Board of Directors, officers, employees and agents from any and all liability for any loss for injuries to or death to person or persons as a result of environmental pollution or damage or destruction to the environment that occurs on or after the date Contractor assumes responsibility or control of any part or segment of the property utilized in the performance of Work pursuant to this Agreement., with exception that Contractor is not responsible for pollution present before assuming responsibility or control of any part or segment of the property utilized in the performance of Work pursuant to this Agreement or where pollution, damage or destruction to the environment is caused by another contractor performing work on behalf of NCTD. 18) Termination a. Mutual Termination: This Agreement may be terminated by mutual agreement of the Parties. Any other act of termination shall be in accordance with section titled “Termination for Convenience” and “Termination for Default” of this agreement. b. Termination for Convenience: NCTD may terminate the Agreement, in whole or in part, at any time and for any reason by giving written notice to notice to the Contractor and specifying the effective date thereof, at least sixty (60) days prior to the effective date. If the Agreement is terminated for convenience as provided in this Section, Contractor shall be entitled to receive compensation for any satisfactory work completed up to the receipt by Contractor of notice of termination, less any payments theretofore made and not to exceed the amount payable herein, and for satisfactory work completed between the receipt of notice of termination and the effective date of termination pursuant to a specific request by NCTD for the performance of such work. In addition, Contractor Page 7 of 16 shall be entitled to payment of its reasonable close-out costs actually incurred by Contractor subject to submission by Contractor of a written request for reimbursement for such close -out costs accompanied by appropriate documentation and receipts evidencing such costs). If the Contractor has any property in its possession belonging to NCTD, the Contractor will account for the same and dispose of or return it in the manner NCTD directs. Termination for Default: NCTD may terminate this Agreement upon giving of written notice of intention to terminate for cause. Cause shall include: ( a) a material violation of any of the covenants, agreements, or stipulations of this Agreement by Contractor, ( b) Contractor, through any cause, failing to fulfill in a timely and proper manner its obligations under this Agreement, (c) any act by Contractor exposing NCTD to liability to others for personal injury or property damage, or (d) if Contractor is adjudged bankrupt, Contractor makes a general assignment for the benefit of creditors, or a receiver is appointed on account of Contractor’s insolvency. Written notice by NCTD of termination for cause shall contain the reasons for such intention to terminate and shall specify the effective date thereof. Unless prior to the effective date of the termination for cause the condition or violation shall cease, or satisfactory arrangements for the correction thereof be made, this Agreement shall cease and terminate on the effective date specified in the written notice by NCTD. In the event of such termination, Contractor shall be paid the reasonable value of satisfactory services rendered up to the date of receipt of the notice of termination in accordance with this Agreement, less any payments theretofore made, as determined by NCTD, not to exceed the amount payable herein, and Contractor expressly waives any and all claims for damages or compensation arising under this Agreement in the event of such termination, except as set forth herein. If it is later determined by NCTD or any other decision maker including a court of competent jurisdiction and/or arbitrator, that the Contractor had an excusable reason for not performing, such as force majeure events which are not a default; NCTD, after setting up a new delivery or performance schedule, may allow the Contractor to continue work, or treat the termination as a termination for convenience, at NCTD’s sole option. c. Rights of NCTD in the Event of Termination for Default: In the case of a termination of the Agreement for default by the Contractor, the Contractor agrees that NCTD may procure the materials and services to complete the project from other sources at the sole discretion of NCTD and may be deducted from the unpaid balance due the Contractor, or, if applicable, may collect against the Contractor’s bond of surety, or may invoice the Contractor for all costs so paid. The prices paid by NCTD to complete the project shall be considered the prevailing market price at the time such purchase is made or such Agreement is entered into. Separate Agreement negotiations maybe entered into, at the sole discretion of NCTD, after the Agreement termination concerning the disposition and materials, supplies and equipment acquired by the Contractor for the requirements of the agreement. d. Remedies and Rights of Contractor: The Contractor shall not be relieved of any responsibility under the Agreement for work accepted by NCTD before the termination of the agreement. Furthermore, the termination of the Agreement shall in no way relieve the Contractor from any of its covenants, undertakings, duties and obligations under this Agreement nor limit the rights and remedies of the Board hereunder in any manner whatsoever. e. Work Stopped by Court or Other Public Authority: If the work should be stopped under an order of any court or other public authority, for a period of three months or more through no act or default of the Contractor or anyone employed by them, or if NCTD has failed to comply with its obligations in any way or if NCTD should fail to issue any certificate for payment within thirty-five days after it is due, then the Contractor may, upon fifteen ( 15) days written notice to NCTD, stop work or terminate the Agreement and recover from NCTD payment for all work executed and all losses sustained, and reasonable profit. f. Opportunity to Cure: In the case of a termination for breach or default, NCTD will allow the Contractor ten (10) days in which to cure the defect, except that if the nature of the cure requires more than ten (10) days to complete, then the cure period shall, in the sole and absolute discretion Page 8 of 16 of NCTD, be extended sufficiently to allow completion of the cure to be diligently pursued by the Contractor. If the Contractor fails to remedy to NCTD’s satisfaction the breach or default of any of the terms, covenants, or conditions of the Agreement within ten (10) days or other cure period after receipt by Contractor or written notice from NCTD setting forth the nature of said breach or default, NCTD shall have the right to terminate the Contractor without any further obligation to the Contractor. Any such termination for default shall not in any way operate to preclude NCTD from also pursuing all available remedies against the Contractor and its sureties for said breach or default. 19) Suspension for Cause or Convenience NCTD may, without cause, order the Contractor in writing to suspend, or interrupt performance of the services in whole or in part for such period of time as NCTD may determine. An adjustment may be made for an increase in the cost of performance of the Agreement including profit on the increased cost of performance, if any, caused by any such suspension or interruption. An equitable adjustment may be made of the price or prices specified in the Agreement relating to the portion of the work not suspended or interrupted by the notice of suspension or interruption. No adjustment shall be made to the extent: a. That performance is, was or would have been so suspended, delayed or interrupted by another cause for which the Contractor is responsible; or b. An equitable adjustment is made or denied under another provision of this Agreement. 20) Effect of Suspension, or Interruption for Cause or Convenience Any suspension or interruption for cause or convenience shall be effected by delivery to the Contractor of a written notice of suspension or interruption specifying the extent to which performance of work under the Agreement is suspended or interrupted and the date upon which such suspension or interruption becomes effective. After receipt of the notice of suspension or interruption and except as otherwise directed by NCTD, the Contractor shall: a. Stop Work under the Agreement on the date and to the extent specified in the notice of suspension or interruption; b. Place no further orders or subcontract for materials, services or facilities except as necessary to complete the portion of the work under the Agreement which is not suspended or interrupted; c. Place no further equipment at the Project except as necessary to complete the portion of the work under the Agreement which is not suspended or interrupted; d. Terminate all orders or subcontract to the extent they relate to the performance of work suspended or interrupted by the notice of suspension or interruption; e. Assign to NCTD in the manner, at the times, and to the extent directed NCTD, all the right, title and interest of the Contractor under the orders and subcontract so suspended or interrupted. NCTD shall have the right, in its discretion, to settle or pay any or all claims arising out of the suspension or interruption of such orders and subcontract; f. Settle all outstanding liabilities and all claims arising out of such suspension or interruption of orders and subcontract, with the approval or ratification of the Board to the extent the Board may so require. The Board’s approval or ratification shall be final for all purposes of this clause; g. Transfer title to NCTD, and deliver in the manner, at the times, and to the extent, if directed by NCTD, the fabricated or un-fabricated parts, work in process, completed work, supplies and other materials produced as a part of, or acquired in connection with the performance of, the work terminated by the notice of suspension, or, and the competed or partially completed plans, drawings, information and other property which, if the Agreement had been completed, would have been required to be furnished to NCTD; h. Use its best efforts to sell, in the manner, at the times, and to the extent, and at the price or prices that NCTD direct or authorized, any property of the types previously referred to herein, but the Page 9 of 16 Contractor shall not be required to extend credit to any purchaser and may acquire any such property under the conditions prescribed and at a price or prices approved by NCTD. The proceeds of any such transfer or disposition shall be applied in reduction of any payments to be made by the NCTD to the Contractor under this Agreement or shall otherwise be credited to the price or cost of the work covered by this Agreement or paid in such other manner as NCTD may direct; i. Complete performance of such part of the work as shall not have been suspended or interrupted by the notice of suspension or interruption; j. Take such action as may be necessary, or as NCTD may direct, for the protection and preservation of the propertyrelated to this Agreement which is in the possession of the Contractor and in which NCTD has or may acquire an interest; k. The Contractor shall maintain the work site and provide such ingress and egress for local resident or tenants or the public as may be necessary during the period of suspended work or until the Agreement has been declared terminated; and l. Maintain all required insurance as if the Agreement had been satisfactorily performed and accepted by NCTD. After receipt of the notice of suspension, or interruption, the Contractor shall submit to NCTD a certified suspension or interruption claim. Such claim shall be submitted promptly but in no event later than ninety (90) days from the effective date of the notice of suspension or interruption. If the Contractor fails to submit a suspension or interruption claim at any time after such ninety (90) day period, NCTD may determine, on the basis of information available to it, the amount, if any, due to the Contractor. NCTD shall then pay to the Contractor the amount so determined. After receipt of a certified claim, NCTD and the Contractor may agree upon the whole or any part of the amount or amounts to be paid to the Contractor because of the total or partial suspension or interruption of the Contract. The amount may include a reasonable allowance for profit on work performed. However, such agreed amount or amounts, exclusive of settlement costs, shall not exceed the total Agreement price as reduced by the amount of payments otherwise made and as further reduced by the Agreement price of work not suspended, or interrupted and any claims NCTD may have against the Contractor. Nothing in this section, shall be deemed to limit, restrict or otherwise determine or affect the amount or amounts which may be agreed upon to be paid to the Contractor pursuant to this paragraph. After receipt of a certified claim, if the Contractor and NCTD fail to agree on the amounts to be paid to the Contractor, NCTD shall determine, on the basis of the information available to it the amount, if any, due to the Contractor by reason of the suspension or interruption and shall pay the Contractor the amount which shall be determined as follows: a. For all work specified in the Agreement which is performed before the effective date of the notice of suspension or interruption, the total of: i. The reasonable cost to the Contractor, without profit, for all Agreement work performed prior to the notice of suspension or interruption, including the work done to secure the project for termination. In determining the reasonable cost, NCTD may utilize the schedule of values, Agreement unit prices, Agreement lump sum, the percentage of work completed and any other method available to it. For purposes of determining reasonable costs, deductions will be made for the cost of materials to be retained by the Contractor, amounts realized by the sale of materials, and for other appropriate credits against the cost of the work. When in the opinion of NCTD the cost of an item of work is unreasonably high, the reasonable cost to be allowed will be the estimated reasonable cost of performing such work in compliance with the requirements of the plans and specifications and excessive actual cost shall be disallowed. ii. Reasonable cost will include a reasonable allowance for project overhead and general administrative overhead not to exceed a total of 5.5% of direct costs of such work. iii. A reasonable allowance for profit on the cost of the work performed as determined under Subsection (a), of this section, provided the Contractor established to the satisfaction of NCTD that it would have made a profit had the Agreement been completed and provided further, that Page 10 of 16 the profit allowed shall in no event exceed six percent (6%) of the cost of the work completed. iv. The reasonable cost to the Contractor of handling material returned to the vendor, delivered to NCTD or otherwise disposed of as directed by NCTD. v. In no event shall NCTD be liable for costs incurred by the Contractor or any of its subcontractors after receipt of a notice of suspension, interruption or termination. Such non recoverable costs include, but are not limited to, anticipated profits on the Agreement post suspension, post-interruption or post- termination, employee salaries, administrative expenses, overhead or unabsorbed overhead, the costs of preparing and submitting the bid, attorneys’ fees or other costs relating to the prosecution of a claim or lawsuit, pre-judgment interest, or any other expense which is not reasonable. 21) Disputes Any dispute, controversy, or claim arising out of or related to this Agreement or any claimed breach thereof, shall be resolved in accordance with the provisions of this item. a. Notice of Dispute: If any dispute, controversy, or claim arises out of or relating to the Agreement or any claimed breach thereof, the disputing Party shall give the other Party written notice of the dispute, controversy, claim, or claimed breach (“ Notice of Dispute”). The Notice of Dispute shall include a brief statement of the Party’s claim(s) and the relief demanded. b. Right to Resolve or Cure: The other Party shall have ten (10) days after receipt of the Notice of Dispute to agree in writing to resolve or cure the dispute, controversy, or claim. c. Failure to Resolve or Cure: If the dispute, controversy, or claim has not been resolved or cured by the Parties within ten (10) days after the disputing Party gives the Notice of Dispute, the Parties may agree that, as a precondition to the initiation of litigation, the controversy, claim, or dispute shall first be submitted to mediation. If elected to by the Parties, the resulting mediation shall be non binding, and intended to provide an opportunity for the Parties to evaluate each other’s cases and arrive at a mutually agreeable resolution of the dispute. i) The mediation process set forth in this section shall be administered by the American Arbitration Association and governed by their rules in effect at the time of filing, or by any other neutral organization agreed to by the Parties (hereinafter called “Administrator”). ii) The costs for all mediation, including the administrative fees and mediator compensation, will be shared equally by all Parties. Fees shall be jointly negotiated by all Parties directly with the Administrator. If all Parties agree, then the mediation costs may increase as required for resolution of the dispute. The expenses of witnesses for any Party shall be paid by the Party producing such witnesses. iii) A single mediator, acceptable to all Parties, shall be used to mediate the dispute. The mediator will be knowledgeable regarding the subject matter of the Agreement, and will be selected from lists furnished by the Administrator. The initial mediation session shall commence within thirty (30) days of filing, unless otherwise agreed by the Parties, or at the direction of the mediator. iv) At least ten (10) days before the first scheduled mediation session, each Party shall provide the mediator a brief memorandum setting forth its position with regard to the issues that need to be resolved. At the discretion of the mediator, such memoranda may be mutually exchanged by the Parties. At the first session, the Parties will be expected to produce all information reasonably required for the mediator to understand the issue presented. The mediator may require each Party to supplement such information. v) Mediation hearings will be conducted in an informal manner and discovery will not be allowed unless agreed to by all Parties. All discussions, statements, or admissions will be confidential to the proceedings and will not be used for any other purpose as they relate to either Party’s legal position. There shall be no stenographic record of the mediation. vi) Mediation sessions are private. The Parties and their representatives may attend mediation sessions. Other persons may attend only with the permission of the Parties and with the Page 11 of 16 consent of the mediator. The Parties may have an attorney present and shall advise the other Parties no less than five (5) working days before the mediation of their intent to have an attorney present, so that the other Parties may also have their attorneys present. vii) The mediator does not have authority to impose a settlement on the Parties but will attempt to assist the Parties in reaching a satisfactory resolution of their dispute. The mediator is authorized to conduct joint and separate meetings with the Parties and to make oral and written recommendations for settlement. Whenever necessary, the mediator may also obtain expert advice concerning technical aspects of the dispute, provided the Parties agree and assume the expenses of obtaining such advice. Arrangements for obtaining such advice shall be made by the mediator or the Parties, as the mediator shall determine. viii) The mediator is authorized to end the mediation whenever, in the mediator’s judgment, further efforts at mediation would not contribute to a resolution of the dispute between the Parties. ix) Any resultant agreements from mediation shall be documented in writing, as agreed upon during the mediation, and may be used as the basis for a change order or other directive as appropriate. All mediation results and documentation shall be non-binding and inadmissible for any purpose in any legal proceedings, unless such admission is otherwise agreed in writing by all Parties. Mediators shall not be subject to any subpoena or liability and their actions shall not be subject to discovery in subsequent proceedings. x) The mediation shall be terminated by the execution of a Settlement Agreement by the Parties; by a written declaration of the mediator to the effect that further efforts at mediation are no longer worthwhile; or by a written declaration of a Party or Parties to the effect that the mediation proceedings are terminated. 22) Continuing the Work during Disputes The Contractor shall continue the services and adhere to the progress schedule during all disputes or disagreements with NCTD over any work listed in the SOW, price, or time dispute. No work shall be delayed or postponed pending resolution of any disputes or disagreements, except as the Contractor and NCTD may otherwise agree in writing. 23) Laws and Venue This Agreement shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of San Diego, State of California. 24) Conflict of Interest a. Contractor represents and warrants that it presently has no interest and agrees that it will not acquire any interest that would present a conflict of interest under California Government Code 1090, et. seq. or Government Code §§ 87100, et. seq. during the performance of services under the Agreement proposed in this RFP. Contractor shall promptly disclose any actual or potential conflict of interest to NCTD as soon as Contractor becomes aware of such conflict. Contractor further agrees that it will not knowingly employ any person having such interest in the performance of the Agreement proposed in this RFP. Violation of this provision may result in the Agreement being deemed void and unenforceable. b. Depending on the nature of the work performed, Contractor may be required to publicly disclose financial interests under NCTD’s Conflict of Interest Code. Contractor agrees to promptly submit a Statement of Economic Interests on the form provided by NCTD upon request by NCTD. c. No person previously in the position of Director, Officer, employee or agent of NCTD may act as an agent or attorney for, or otherwise represent Contractor by making any formal or informal appearance, or any oral or written communication, before NCTD or any officer or employee with NCTD for a period of twelve ( 12) months after leaving office or employment with NCTD if the appearance or communication is made for the purpose of influencing any action involving the issuance, amendment, award or revocation of a permit, license, grant or agreement. Page 12 of 16 25) Standard of Conduct Contractor is required to adhere to NCTD’s Standard of Conduct which can be found in the following link: https://nctd.app.box.com/s/35zvgi56mv0t7ggs8g1gro4biemat7il. 26) Contingent Fees and Gratuities The Contractor agrees as follows: a. The Contractor warrants and covenants that no person or selling agency has been employed or retained to solicit or secure this agreement upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees. For breach or violation of this warranty NCTD shall have the right to terminate this Agreement without liability or in its discretion to deduct from the total price or otherwise recover the full amount of such commission, percentage, brokerage, or contingent fee. b. The Contractor warrants and covenants that no gratuities, in the form of entertainment, gifts, or otherwise have been or will be offered or given by Contractor or any of its agents, employees or representatives to any NCTD employee or member of the Board in an attempt to secure an agreement or favorable treatment in awarding, amending or making any determination related to the performance of this work. 27) Whistleblower Hotline NCTD is an organization with strong values of responsibility and integrity and has developed a number of policies and procedures to provide Contractor’s with clear direction and guidance to ensure that NCTD’s business is carried out with fairness, efficiency, impartiality and integrity. NCTD is committed to an environment where open, honest communication is the expectation, not the exception. If Contractor believes that a violation of law, regulations, Board policies, NCTD’s Standard of Conduct Policy or any deviation from established business practices has occurred, NCTD encourages Contractor to report the suspect violation via the anonymous Whistleblower Hotline managed by third party vendor, Navex Global at www.nctd.ethicspoint.com or by calling 855-877-6048. 28) Maintenance of Records Books, documents, papers, accounting records, and other evidence pertaining to the performance of services under this Agreement, and costs incurred shall be maintained by Contractor and any subcontractors and made available at all reasonable times during the agreement period and for four 4) years from the date of final payment under the agreement for inspection by NCTD, the State Auditor, or any duly authorized representative of the Federal Government. 29) Ownership of Documents All tracings, plans, specifications, maps and/or reports prepared or obtained under the agreement documents shall be considered works made for hire and shall become property of NCTD without restriction or limitation on their use, and shall be made available upon request to NCTD at any time. All documents and materials prepared or developed by the Contractor and its subcontractors pursuant to this Agreement shall become the property of NCTD without restriction or limitation on their use and shall be made available upon request to NCTD at any time. Original copies of such shall be delivered to NCTD upon completion of the services or termination of the services. The Contractor shall be permitted to retain copies of such items for the furtherance of its technical proficiency; however, publication of this material is subject to the written approval of NCTD. No material or technical data prepared by the Contractor under this Agreement is to be released by the Contractor to any other person or agency except as necessary for the performance of the services. All press releases or information to be published in print or electronic media, shall be distributed only after first being authorized by NCTD. Page 13 of 16 NCTD shall have the right to use, duplicate, modify or disclose the technical data and the information conveyed therein, in whole or in part, in any manner whatsoever, and to have or permit others to do so. The Contractor shall agree to grant to NCTD and to its officers, agents, and employees acting within the scope of their official duties, a royalty-free license to publish, translate, reproduce, deliver, and use as they deem fit all technical data covered by copyright supplied for this Agreement. No such copyrighted matter shall be included in technical data furnished hereunder without the written permission of the copyright owner for NCTD to use in the manner herein described. The Contractor warrants that the processes, design, equipment, materials, or devices used in providing the services shall be delivered free of any rightful claim of any third party for infringement of any United States patent or copyright. If a suit or proceeding based on a claimed infringement of a patent or copyright is brought against NCTD the Contractor shall, at its own expense, defend or settle any such suit or proceeding if authorized to do so in writing by NCTD, and indemnify and hold harmless NCTD, its subsidiaries, agents and employees from all liability, damages, costs, and expenses associated therewith, including, without limitation, defense costs and attorney fees. 30) Ownership of NCTD Provided or Purchased Materials, Equipment, Devices, Etc. All NCTD provided or purchased materials, equipment, devices, etc. obtained under the contract documents shall be considered property of NCTD without restriction or limitation on their use, and shall be made available upon request to NCTD at any time. 31) Independent Contractor Contractor is retained as an independent Contractor and is not an employee of NCTD. No employee or agent of Contractor shall become an employee of NCTD. The work to be performed shall be in accordance with the work described in Exhibit A, subject to such directions and amendments from NCTD as herein provided. 32) Third Party Rights Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than NCTD and the Contractor. 33) Severability The unenforceability, invalidity or illegality of any provision(s) of this Agreement shall not render the other provisions unenforceable, invalid or illegal. 34) Assignment Contractor shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of NCTD, which may be withheld for any reason. Nothing contained herein shall prevent Contractor from employing independent associates and subcontractors as Contractor may deem appropriate to assist in the performance of services hereunder. Even though certain work may be purchased or contracted from an outside source under a subcontract, Contractor shall assume full responsibility for all work and materials. 35) Confidentiality Contractor is prohibited from using any social media to reference any ongoing or completed work for NCTD without NCTD’s express written permission. Social media is defined as a set of Internet tools that aid in the facilitation of interaction between people online, including but not limited to, LinkedIn, Twitter, Instagram, Facebook, YouTube and Myspace. Contractor will perform services for NCTD which may require NCTD to disclose confidential, financial, and/or proprietary information ("Confidential Information") to Contractor. Confidential Information is any information of any kind, nature, or description concerning any matters affecting or relating to Contractor’s services for NCTD, the business or operations of NCTD, and/or the products, drawings, plans, processes, or other data of NCTD. Accordingly, to protect the NCTD Confidential Information Page 14 of 16 that will be disclosed to Contractor, Contractor agrees as follows: a. To hold the Confidential Information received from NCTD in strict confidence and shall exercise a reasonable degree of care to prevent disclosure to others. b. To not disclose or divulge either directly or indirectly the Confidential Information to others unless first authorized to do so in writing by NCTD. c. To not reproduce the Confidential Information nor use this information commercially or for any purpose other than the performance of its duties for NCTD. d. To, upon the request or upon termination of the relationship with NCTD, deliver to NCTD any drawings, notes, documents, equipment, and materials received from NCTD or originating from its activities for NCTD. e. To grant NCTD the sole right to determine the treatment of any information that is part or project specific received from Contractor, including the right to keep the same as a trade secret, to use and disclose the same without prior patent applications, to file copyright registrations in its own name or to follow any other procedure as NCTD may deem appropriate. f. To grant NCTD the right to take action, up to and including termination of the Agreement for violations of this Agreement. g. To accept that any unauthorized access, modification, manipulation, destruction, or disclosure of confidential information is a violation of this Agreement and may be a violation of state and federal laws. 36) Integration This Agreement represents the entire understanding of NCTD and Contractor as to those matters contained herein, and supersedes and cancels any prior oral or written understanding, promises or representations with respect to those matters covered hereunder. This Agreement may not be modified or altered except in writing signed by both Parties hereto. This is an integrated Agreement. 37) Warranty of Authority Each of the parties signing this Agreement warrants to the other that it has the full authority of the entity on behalf of which its signature is made. 38) Execution of Agreement and Counterparts This Agreement may be executed and delivered electronically via e-mail or facsimile and a scanned or facsimile signature shall be treated as an original. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Agreement. Remainder of Page Intentionally Left Blank] Page 15 of 16 THE PARTIES, INTENDING TO BE LEGALLY BOUND, have executed this Agreement as of the last date of the Parties’ signature below. NORTH COUNTY TRANSIT DISTRICT MV TRANSPORTATION, INC. By: Samuel Elmer Chief Procurement & Contract Administration Officer By: Printed Name: Title: Date: Date: MV TRANSPORTATION, INC. By: Date: APPROVED AS TO FORM AND LEGALITY By: Lori A. Winfree General Counsel Date: NOTE: If this Agreement involves a corporate party, the corporation must be represented by two individuals as follows: (A) one from the corporation’s “Operational Group” (e.g. Chair of the Board, President, or a VicePresident) and; (B) one from the corporation’s “Financial Group” (e.g. Secretary, Assistant Secretary, Chief Financial Officer, Treasurer or Assistant Treasurer). See California Corporations Code section 313. Page 16 of 16 ATTACHMENT 18B Administration BREEZE $ Administration LIFT $ Administration FLEX $ Administration Facilities $ Operations BREEZE $ Operations LIFT $ Operations FLEX $ Maintenance of Equipment BREEZE Maintenance of Equipment – LIFT Maintenance of Equipment FLEX Facilities Maintenance $ Total $ FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 Mobilization Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 921,890 $ 5,117,006 $ 5,270,516 $ 5,428,632 $ 5,591,491 $ 5,759,236 $ 5,932,013 $ 6,109,973 $ 6,293,272 $ 6,482,070 $ 6,676,532 $ 59,582,631 213,068 $ 1,408,806 $ 1,451,070 $ 1,494,602 $ 1,539,440 $ 1,585,623 $ 1,633,192 $ 1,682,188 $ 1,732,653 $ 1,784,633 $ 1,838,172 $ 16,363,446 23,428 $ 143,755 $ 148,067 $ 152,509 $ 157,084 $ 161,797 $ 166,651 $ 171,650 $ 176,800 $ 182,104 $ 187,567 $ 1,671,413 1,595 $ 82,942 $ 85,430 $ 87,993 $ 90,633 $ 93,352 $ 96,153 $ 99,037 $ 102,008 $ 105,069 $ 108,221 $ 952,433 500,970 $ 19,364,146 $ 19,945,071 $ 20,543,423 $ 21,159,726 $ 21,794,517 $ 22,448,353 $ 23,121,803 $ 23,815,458 $ 24,529,921 $ 25,265,819 $ 222,489,207 121,822 $ 4,157,034 $ 4,281,745 $ 4,410,197 $ 4,542,503 $ 4,678,778 $ 4,819,141 $ 4,963,715 $ 5,112,627 $ 5,266,006 $ 5,423,986 $ 47,777,554 11,370 $ 405,034 $ 417,185 $ 429,700 $ 442,591 $ 455,869 $ 469,545 $ 483,631 $ 498,140 $ 513,084 $ 528,477 $ 4,654,627 208,002 $ 6,140,211 $ 6,324,418 $ 6,514,150 $ 6,709,575 $ 6,910,862 $ 7,118,188 $ 7,331,734 $ 7,551,686 $ 7,778,236 $ 8,011,583 $ 70,598,645 53,207 $ 1,122,007 $ 1,155,667 $ 1,190,337 $ 1,226,047 $ 1,262,829 $ 1,300,714 $ 1,339,735 $ 1,379,927 $ 1,421,325 $ 1,463,965 $ 12,915,759 6,847 $ 99,729 $ 102,721 $ 105,802 $ 108,976 $ 112,245 $ 115,613 $ 119,081 $ 122,654 $ 126,333 $ 130,123 $ 1,150,124 12,070 $ 853,188 $ 878,784 $ 905,147 $ 932,302 $ 960,271 $ 989,079 $ 1,018,751 $ 1,049,314 $ 1,080,793 $ 1,113,217 $ 9,792,917 2,074,270 $ 38,893,857 $ 40,060,673 $ 41,262,493 $ 42,500,368 $ 43,775,379 $ 45,008,640 $ 46,441,300 $ 47,834,539 $ 49,269,575 $ 50,747,662 $ 447,948,756 ATTACHMENT 18C Award Contract for Combined BREEZE Fixed Route, LIFT ADA Paratransit, and FLEX Specialized Transportation Operations and Maintenance RFP No. 25944 Detailed Presentation) Board Meeting January 19, 2017 Overview Current Operations and Scope Existing Contracts New Scope Evaluation Criteria Schedule Questions 11 Current Contract Scope Administration Transportation (BREEZE, LIFT, FLEX) Vehicle Maintenance Facility & Equipment Maintenance 22 BREEZE Fixed Route Bus Began on July 1, 1976. Directly operated by NCTD until contract with First Transit was awarded in 2009 and revenue operations commenced July 1, 2010. Contract with First Transit expires on June 30, 2017. FY 16 ridership totaled 7,547,119. 33 BREEZE Fixed Route Bus 31 Weekday Routes 8 Major Transit Centers 5 Route Types Currently operates between 3: 59a.m. and 12: 09a.m. weekdays, with extended service on Friday and Saturday nights. 163 Revenue Vehicles 139 Full size buses 24 Cut -away vans Maintenance Facilities East Division West Division 44 LIFT Paratransit Federally required complementary paratransit service. Began service in 1990. First Transit assumed operations from American Logistics Company in April 2014. FY 16 ridership totaled 199,670. 55 LIFT Paratransit Provided within ¾ of a mile of BREEZE or SPRINTER rail station, during the same hours and days as BREEZE and SPRINTER operations. 53 Revenue Vehicles 31 Cut -away vans 22 Minivans Follows BREEZE operating hours Maintenance Facility Vehicles stored and maintained at the East and West Divisions 66 FLEX Route Deviation Small buses operating in a zone to connect origins and destinations. Began in March 2010 as part of the Mobility Plan with American Logistics Company (ALC) as the contract operator. Transitioned over to First Transit Contract in April 2014 with LIFT services due to contract termination with ALC. FY16 ridership totaled 24,890. 77 FLEX Route Deviation Four Routes: Carlsbad Encinitas Solana Beach Escondido-Ramona 8 Cut -away vans Currently operates between 4: 50 a.m. and 8: 30 p.m. weekdays only 88 Key Considerations for New RFP The contract for BREEZE operations was entered into during the “ Great Recession”. Cost management is important but must be equally balanced with the need to improve service quality and offer more market competitive services. Improved economic conditions require NCTD to address regional wage competitiveness. New scope of work reflects all of the aforementioned changes and lessons learned. 99 Scope of Work for RFP No. 25944 NCTD will select one (1) qualified Prime Contractor to perform BREEZE, LIFT, and FLEX services resulting in: One bundled service provider for BREEZE, FLEX and LIFT and supporting limited facility maintenance at the east and west divisions and for bus stops The prime contractor performs a minimum of 70% of services directly High quality service supported by well trained and supervised operations staff Consistent procedures and policies supported by the use of technologies that improve the customer riding experience and operational efficiency Efficient management, communication, and NCTD oversight Best overall value for NCTD 1010 Evaluation Criteria Qualifications and Experience - 10% Corporate Qualifications and Experience Key Personnel Qualifications and Experience Past Performance - 10% Scope Relevancy Magnitude Relevancy Complexities Relevancy 1111 Evaluation Criteria Technical Approach - 20% Administrative Management Plan General Approach, Interface, Typical Day, Service Management Mobilization Plan Fleet and Facility and Equipment Maintenance Plans Productivity Commitment - 15% 1212 Evaluation Criteria Training, Safety & Regulatory Compliance - 20% Safety Programs and Plans Civil Rights Program Labor Code Compliance - 10% Cost - 15% As compared to ICE and other Proposers 1313 RFP Scope Summary Administration Transportation (BREEZE, LIFT, FLEX) Vehicle Maintenance Facility & Equipment Maintenance Bus Stop Shelters, Signs, and Pole Maintenance Dispatch Division Dispatch Service Management Dispatch (in the OCC) 1414 RFP Scope Summary Personnel: NCTD is requiring contractor provide 19 designated key positions to ensure proper staffing resources. NCTD required the Contractor to develop productivity commitments that would support the determination of staffing levels related to drivers and maintainers. NCTD specified detailed hiring standards and job requirements and responsibilities for personnel. 1515 RFP Scope Summary Safety, Security, and Training: Organizational requirements have been specified to ensure that safety, security, and training are addressed per NCTD and regulatory requirements. 7 positions at a minimum to support these functions. Contractor staffing incorporates the time that will be invested for continuous training of all crafts included in the scope of work. 1616 RFP Scope Summary Quality Control and Customer Service: RFP requires Contractor to develop and maintain a Quality Control Program. Detailed requirements to support improved customer service were included in the RFP. Specific and more detailed performance and training requirements were included to support compliance with civil rights and ADA requirements. 1717 RFP Scope Summary Asset Management: Contractor will be required to utilize NCTD Enterprise Asset Management System. Minimum inventory levels for key components will be established. Expanded or Reduced Operations: Includes detailed pricing that supports potential for increases or decreases in service 1818 RFP Scope Summary Maintenance of Equipment: Includes all revenue equipment for BREEZE, LIFT, and FLEX. Includes all non-revenue equipment for Contractor and NCTD administration fleet. Requires Contractor to create annual Fleet Maintenance Plan. 1919 RFP Scope Summary Facilities Maintenance (Janitorial and Limited Structural): East Division West Division District Bus Stop Locations – Bus Stop Shelters and Bus Stop Signs and Poles 2020 RFP Scope Summary BREEZE Operations NCTD is responsible for developing routes Contractor is responsible for developing work schedules based on routes developed by NCTD Including Bus Bridges related to rail incidents/accidents LIFT Operations Including Scheduling/Reservations FLEX Operations Including Scheduling/Reservations 2121 RFP Scope Summary BREEZE Dispatching Requirement for Dispatchers at both operations divisions OCC Dispatcher Requirement (New position) LIFT Dispatching Including assigning trips to subcontracted providers FLEX Dispatching Including assigning trips to subcontracted providers 2222 RFP Scope Summary Liquidated Damages: On-Time Performance (OTP) Missed Revenue Hours or Trips LIFT Passengers per Hour Customer Complaints LIFT/FLEX Call Center Metrics Vehicle Appearance Vehicle Maintenance Training 2323 RFP Scope Summary Liability and Risk Management: Insurance Requirements 20 Million in General Liability 10 Million in Automobile Liability Various Values of Automobile Physical Damage Statutory Workers Compensation Liability and Indemnification General Pollution 2424 Procurement Schedule Event Date Notice of Opportunity Posted July 1, 2016 RFP Advertised August 19, 2016 Proposal Due Date October 27, 2016 Notice of Intent to Award December 1, 2016 Protest Period December 1-22, 2016 Board Approval January 19, 2017 Contract Signing and Processing January 20, 2017 Mobilization Begins January 23, 2017 Period of Performance Begins July 1, 2017 2525 Four (4) Proposals Received and Deemed Responsive Company Name Number of Contracts Managed Number of Passenger Trips Provided Annually First Transit 350 350 million MV Transportation 240 120 million McDonald Transit 32 78 million TransDev 200 400 million 2626 Evaluation Committee A Source Selection Committee of 5 staff members evaluated the proposal. The Source Selection Committee was supported by 5 technical experts who reviewed specific sections of the RFP and provided input. Proposals were evaluated based on base service proposals. Following Source Selection Committee Review, the Notice of Intent to Award was issued on December 1, 2016. 2727 Protests of Proposed Award Following issuance of the Notice of Intent to Award, NCTD received 2 protests as follows: First Transit: alleged a misunderstanding in connection with NCTD’s request for pricing clarification and submission of costs forms and a miscalculation in connection with the scoring of First Transit’s productivity commitment, as well as other alleged irregularities in scoring. TransDev: alleged that the inadvertent disclosure of sections of the proposal to one of the proposers restricted full and open competition. The TransDev protest was withdrawn and First Transit determined it would not pursue its protest following discussion and formal response by NCTD. 2828 Source Selection Committee Scoring Points Possible MV First Transit McDonald Transdev Qualifications and Experience 10.00 5.80 4.80 2.50 5.90 Past Performance 10.00 5.46 5.20 4.07 5.86 Technical Approach 20.00 11.86 9.54 8.36 10.10 Productivity Commitment 15.00 6.00 5.70 6.60 7.30 Safety and Regulatory Compliance 20.00 9.30 8.40 9.50 7.70 Labor Code Compliance 10.00 10.00 10.00 10.00 10.00 Cost 15.00 14.45 15.00 14.39 13.46 100.00 62.87 58.64 55.41 60.32 Total 2929 Proposal Cost Comparison- Year 1-10 Proposer Total Cost Variance from Mobilization NCTD ICE Year 1 thru Year 10) NCTD ICE $ 438,031,002 First Transit $ 434,108,367 -$ 3,922,635 -. Variance from NCTD ICE 9% MV Transportation $ 450,585,653 $ 12,554,651 2.87% McDonald Transit $ 452,600,753 $ 14,569,751 3.33% TransDev $ 483,819,563 $ 45,788,561 10.45% 3030 Strengths of MV Transportation’s Proposal Extensive corporate experience in California Extensive paratransit experience Added a QA/QC position Proposed Regional Service Coordination Committee Detailed training plan covering all areas Proposed Transition Committee for mobilization Strong Safety and Hazard Plans Highly qualified Key Personnel Proposed an alternative compensation plan to address bus operator hiring and retention challenges 3131 MV Transportation 10-Year Cost (Based on Clarification Request) FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 Mobilization Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Administration BREEZE $ 917,757 $ 5,019,285 $ 5,169,864 $ 5,324,959 $ 5,484,708 $ 5,649,249 $ 5,818,727 $ 5,993,289 $ 6,173,087 $ 6,358,280 $ 6,549,028 $ 58,458,234 Administration LIFT $ 209,938 $ 1,272,459 $ 1,310,633 $ 1,349,952 $ 1,390,450 $ 1,432,164 $ 1,475,129 $ 1,519,383 $ 1,564,964 $ 1,611,913 $ 1,660,270 $ 14,797,255 Administration FLEX $ 22,987 $ 123,715 $ 127,426 $ 131,249 $ 135,186 $ 139,242 $ 143,419 $ 147,722 $ 152,153 $ 156,718 $ 161,419 $ 1,441,235 Administration Facilities $ 1,595 $ 82,942 $ 85,430 $ 87,993 $ 90,633 $ 93,352 $ 96,153 $ 99,037 $ 102,008 $ 105,069 $ 108,221 $ 952,433 Operations BREEZE $ 500,573 $ Operations - LIFT $ 126,202 $ 4,311,491 $ 4,440,836 $ 4,574,061 $ 4,711,283 $ 4,852,621 $ 4,998,200 $ 5,148,146 $ 5,302,590 $ 5,461,668 $ 5,625,518 $ 49,552,616 10,911 $ 368,010 $ 379,051 $ 390,422 $ 402,135 $ 414,199 $ 426,625 $ 439,424 $ 452,606 $ 466,185 $ 480,170 $ 4,229,739 207,843 $ 6,161,786 $ 6,346,640 $ 6,537,039 $ 6,733,150 $ 6,935,145 $ 7,143,199 $ 7,357,495 $ 7,578,220 $ 7,805,567 $ 8,039,734 $ 70,845,819 Maintenance of Equipment – LIFT $ 53,359 $ 1,132,727 $ 1,166,709 $ 1,201,710 $ 1,237,761 $ 1,274,894 $ 1,313,141 $ 1,352,535 $ 1,393,111 $ 1,434,905 $ 1,477,952 $ 13,038,804 Maintenance of Equipment - FLEX $ 6,648 $ 94,005 $ 96,825 $ 99,730 $ 102,722 $ 105,803 $ 108,977 $ 112,247 $ 115,614 $ 119,082 $ 122,655 $ 1,084,308 17,213 $ 1,304,787 $ 1,343,930 $ 1,384,248 $ 1,425,776 $ 1,468,549 $ 1,512,606 $ 1,557,984 $ 1,604,723 $ 1,652,865 $ 1,702,451 $ 14,975,133 Operations - FLEX $ Maintenance of Equipment BREEZE Facilities Maintenance $ Total $ 2,075,027 $ 19,252,602 $ 19,830,180 $ 20,425,085 $ 21,037,838 $ 39,123,809 $ 40,297,523 $ 41,506,449 $ 42,751,643 $ 21,668,973 $ 22,319,042 $ 22,988,613 $ 23,678,272 $ 24,388,620 $ 25,120,279 $ 221,210,078 44,034,192 $ 45,355,218 $ 46,715,874 $ 48,117,350 $ 49,560,871 $ 51,047,697 $ 450,585,653 3232 Negotiations with MV Transportation Negotiations commenced on December 7th NCTD negotiated $9.9 million of savings over the 10-year period in the following areas: Insurance Facility Maintenance Staffing and Material Reduction in non-revenue fleet size Liquidated Damages offsets NCTD and MV agreed to actions to improve driver hiring and retention and to increase staffing in dispatch, OCC, and maintenance 3333 MV Final Contract 10-Year Cost FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 Mobilization Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Administration BREEZE $ 921,890 $ 5,117,006 $ 5,270,516 $ 5,428,632 $ 5,591,491 $ 5,759,236 $ 5,932,013 $ 6,109,973 $ 6,293,272 $ 6,482,070 $ 6,676,532 $ 59,582,631 Administration LIFT $ 213,068 $ 1,408,806 $ 1,451,070 $ 1,494,602 $ 1,539,440 $ 1,585,623 $ 1,633,192 $ 1,682,188 $ 1,732,653 $ 1,784,633 $ 1,838,172 $ 16,363,446 Administration FLEX $ 23,428 $ 143,755 $ 148,067 $ 152,509 $ 157,084 $ 161,797 $ 166,651 $ 171,650 $ 176,800 $ 182,104 $ 187,567 $ 1,671,413 Administration Facilities $ 1,595 $ 82,942 $ 85,430 $ 87,993 $ 90,633 $ 93,352 $ 96,153 $ 99,037 $ 102,008 $ 105,069 $ 108,221 $ 952,433 Operations BREEZE $ 500,970 $ 19,364,146 $ 19,945,071 $ 20,543,423 $ 21,159,726 $ 21,794,517 $ 22,448,353 $ 23,121,803 $ 23,815,458 $ 24,529,921 $ 25,265,819 $ 222,489,207 Operations LIFT $ 121,822 $ 4,157,034 $ 4,281,745 $ 4,410,197 $ 4,542,503 $ 4,678,778 $ 4,819,141 $ 4,963,715 $ 5,112,627 $ 5,266,006 $ 5,423,986 $ 47,777,554 Operations FLEX $ 11,370 $ 405,034 $ 417,185 $ 429,700 $ 442,591 $ 455,869 $ 469,545 $ 483,631 $ 498,140 $ 513,084 $ 528,477 $ 4,654,627 208,002 $ 6,140,211 $ 6,324,418 $ 6,514,150 $ 6,709,575 $ 6,910,862 $ 7,118,188 $ 7,331,734 $ 7,551,686 $ 7,778,236 $ 8,011,583 $ 70,598,645 53,207 $ 1,122,007 $ 1,155,667 $ 1,190,337 $ 1,226,047 $ 1,262,829 $ 1,300,714 $ 1,339,735 $ 1,379,927 $ 1,421,325 $ 1,463,965 $ 12,915,759 6,847 $ 99,729 $ 102,721 $ 105,802 $ 108,976 $ 112,245 $ 115,613 $ 119,081 $ 122,654 $ 126,333 $ 130,123 $ 1,150,124 12,070 $ 853,188 $ 878,784 $ 905,147 $ 932,302 $ 960,271 $ 989,079 $ 1,018,751 $ 1,049,314 $ 1,080,793 $ 1,113,217 $ 9,792,917 Maintenance of Equipment BREEZE Maintenance of Equipment – LIFT Maintenance of Equipment FLEX Facilities Maintenance $ Total $ 2,074,270 $ 38,893,857 $ 40,060,673 $ 41,262,493 $ 42,500,368 $ 43,775,379 $ 45,008,640 $ 46,441,300 $ 47,834,539 $ 49,269,575 $ 50,747,662 $ 447,948,756 3434 Annualized FY 17 Cost Comparison with MV Transportation Year 1 Cost FY 17 Administration - BREEZE $ FY 18 –Year 1 MV Cost 3,481,340 $ 5,117,006 893,812 $ 1,408,806 63,271 $ 143,755 2,729,510 $ 82,942 18,404,996 $ 19,364,146 4,714,060 $ 4,157,034 316,354 $ 405,034 Maintenance of Equipment - BREEZE $ 6,459,188 $ 6,140,211 Maintenance of Equipment – LIFT $ 1,021,500 $ 1,122,007 Maintenance of Equipment - FLEX $ 72,309 $ 99,729 214,872 $ 853,188 38,371,211 $ 38,893,857 Administration - LIFT $ Administration - FLEX $ Administration - Facilities $ Operations - BREEZE $ Operations - LIFT $ Operations - FLEX $ Facilities Maintenance $ Total $ 3535 Contract Staff Comparison Current Administration - BREEZE Proposed Difference 21 30 + 9 Administration – LIFT & FLEX 5 20 + 15 Administration - Facilities 2 3+ 1 318 320 + 2 Operations – LIFT & FLEX 51 90 + 39 Maintenance of Equipment – BREEZE 51 60 + 9 Maintenance of Equipment – LIFT & FLEX 5 17 + 12 33 8- 25 486 548 + 62 Operations - BREEZE Facilities Maintenance Total 3636 Next Steps Event Date Notice to Proceed January 23, 2017 Mobilization Begins January 23, 2017 Contractor Notification to Union February 2, 2017 Key Staff in Oceanside March 6, 2017 Initial Audit of Facilities and Fleet March 23, 2017 Final Audit of Facilities and Fleet June 1, 2017 All Plans and Programs Complete June 1, 2017 Period of Performance Begins July 1, 2017 3737 Recommendation Authorize the Executive Director to award Contract No. 17033-OS to MV Transportation for combined BREEZE, LIFT and FLEX Operations and Maintenance services for a total not-to-exceed amount of $453,821,363; which includes; a) the final 10-year base services negotiated price (including mobilization costs) of 447,948,756; and b) an additional $5,872,607 for engine and transmission replacements and rebuilds which NCTD has the option of directing MV Transportation to provide when needed based on the competitive pricing submitted during the RFP process or to separately procure these overhaul services. 3838 Questions? NORTH COUNTY SPHINTEFI BREEZE FLEX il'FT DISTRICT 810 Mission Avenue, Oceanside, CA 92054 0 Agenda Item # 19 RECEIVE FY2016 FINANCIAL AUDIT RESULTS Time Sensitive STAFF RECOMMENDATION: BACKGROUND INFORMATION: X Consent That the Board of Directors receive FY2016 Financial Audit Results. In accordance with State of California Public Utilities Code § 125105, the North County Transit District ( NCTD) is required to have a post-audit of its financial transactions and records performed annually by a certified public accountant. Macias, Gini & O’Connell, LLP (MGO) are the NCTD independent auditors, and have substantially completed the audit of the NCTD financial statements for the fiscal year ending June 30, 2016. MGO will discuss the draft financial statements with the NCTD Board of Directors (Board) at its January 19, 2017 Board meeting. The audit confirms the following NCTD financial highlights: NCTD sustained the target balance of a $15 million Board Reserve Fund, which is included in the unrestricted net assets balance of $17.1 million as of June 30, 2016. Annual ridership for NCTD dropped from 12,640,292 in FY2015 to 12,005,662 for FY2016 due to decreased ridership on BREEZE, COASTER, SPRINTER, and FLEX. LIFT ridership grew by 8.1% from FY2015 to 189,997 in FY2016. NCTD had an operating surplus of $ 2.6 million for FY2016 net of depreciation expense. Operating expenses were $ 5.1 million under budget primarily due to cost savings of $2.8 million in salaries and fringe benefits due to staffing vacancies. Purchased Transportation expense was $1.4 million under budget primarily due to payment penalties based on operator performance. While fare revenues were under the budgeted target by $ 1.9 million due to the decrease in ridership, net operating revenues were up slightly over budget primarily due to recognition of $1.2 million of other revenues in FY2016 related to CNG tax credits. In FY2016, NCTD produced a farebox recovery ratio of 20.7% which is down from the FY2015 ratio of 22.5%. System-wide cost per revenue mile was contained at $10.30, or only 1.6 % above FY2015 cost per revenue mile of $10.14. NCTD invested $50.4 million into capital assets in FY2016. $34.8 million of that amount was contributed capital from SANDAG projects, comprised mostly of double track and bridge projects along the COASTER right of way. January 19, 2017 Board Meeting Staff Report No.: SR-17-01-019 The annual debt service payment of $ 1.275 million was completed reducing the balance of the outstanding certificates of participation to 28.1 million. Per Governmental Accounting Standards Board (GASB) Statement No. 68, the funded ratio of a defined benefit retirement plans may no longer be presented using the actuarial value of assets. As such, NCTD now uses the market value of assets to present the funded ratio of the retirement plan. The market value funded ratio for the retirement plan was 78.3% as of the most recent valuation date of June 30, 2015 from CalPERS. This is a 2.9% decrease from the market value funded ratio of 81.2% for the retirement plan as of June 30, 2014, and a .01% increase from the market value funded ratio of 78.2 as of June 30, 2013. Staff has drafted the financial statements, and is collaborating with MGO to finalize the Comprehensive Annual Financial Report (CAFR). We anticipate that CAFR will be completed in January 2017 and distributed to the Board in February 2017. ATTACHMENT: FISCAL IMPACT: COMMITTEE REVIEW: STAFF CONTACT: None This staff report has no fiscal impact. None Luz Cofresí-Howe, Chief Financial Officer E-mail: lcofresihowe@nctd.org Phone: 760-967-2829 January 19, 2017 Board Meeting Staff Report No.: SR-17-01-019 Agenda Item # 20 RECEIVE POSITIVE TRAIN CONTROL PROGRAM PRESENTATION Time Sensitive STAFF RECOMMENDATION: Consent Receive a presentation regarding the status of the Positive Train Control program. BACKGROUND INFORMATION: The Positive Train Control (PTC) presentation provides a status on the progress of the North County Transit District’s PTC program with updates on the status of the implementation of the program. ATTACHMENT: None FISCAL IMPACT: COMMITTEE REVIEW: STAFF CONTACT: This staff report has no fiscal impact. None Eric Roe, Deputy Chief Operations Officer – Rail Systems E-mail: eroe@nctd.org Phone: 760-966-6596 January 19, 2017 Board Meeting Staff Report No: SR-17-01-020