NORTH COUNTY TRANSIT Operating Budget DISTRICT FISCAL YEAR 2 0 1 2 CAPITAL IMPROVEMENT PROGRAM 2012 - 2016 PUBLIC HEARING: JUNE 23, 2011 BUDGET ADOPTION: JUNE 23, 2011 810 Mission Avenue, Oceanside, CA 92054 (760) 967-2828 www.GoNCTD.com deliver sale, convenient, reliable and provide an integrated transit system that enables ourc.ust"omers to travelseasily and efficiently i throughout our-growing region.I.. . I. I: I. Mission..- public transportationservices. We will achieve our Mission and Vision by: 0 placing service to our customers first I ensuring safety and security of our employees and customers 0 delivering high quality transit services 0 developing and maintaining lacilities that sustain and promote current and Future transportation services securing adequate revenue, protecting our assets and getting the maximum return on the public investment 0 encouraging innovation, creativity and leadership 0 working in partnership with our communities and other stakeholders Table of Contents TABLE OF CONTENTS .................................................................................................................. 1 READER'S GUIDE AND BUDGET AWARD ..................................................................................... 3 BOARD OF DIRECTORS Board of Directors .............................................................................................................. 9 DISTRICT OVERVIEW Budget Message ................................................................................................................ 11 Service Area Map ............................................................................................................... 13 Services and Activities ........................................................................................................ 15 Organization Chart ............................................................................................................. 22 OPERATING BUDGET SUMMARY Operating Budget by Classification ................................................................................... 23 Operating Expenses by Division and Department ............................................................ 24 Operating Expenses by Mode ............................................................................................ 26 Revenue by Mode and Type ............................................................................................. 27 Major Revenue Sources..................................................................................................... 28 Revenue and Expense Charts .......................................................................................... 29 Budget Assumptions ......................................................................................................... 30 Operational Statistics ......................................................................................................... 39 Debt Overview ................................................................................................................... 41 Personnel Summary........................................................................................................... 43 DIVISION BUDGETS General Management ........................................................................................................ 45 Board of Directors General Management Inter-Governmental Affairs Real Estate Communications, Outreach and Customer Service .......................................................... 49 Communications and Outreach Customer Service Finance and Administration ............................................................................................... 53 Chief Financial and Administative Officer Accounting Budgeting and Fare Collection Risk and Insurance Management Information Technology Contracts and Procurement Management Accounting Human Resources Table of Contents 1 Table of Contents cont. DIVISION BUDGETS (continued) Rail Operations ................................................................................................................. 61 Chief of Rail Operations Commuter Rail Services Light Rail Services Maintenance of Way Bus Operations, Planning and Safety ............................................................................... 67 Chief of Bus Operations, Planning and Safety Contract Operations and Maintenance Transit Enforcement Service Planning System Safety and Compliance Service Quality and Accessibility CAPITAL IMPROVEMENT PROGRAM Capital Improvement Program Overview ........................................................................... 77 Baseline Constrained CIP Summary ................................................................................ 80 Baseline Constrained CIP Detail FY 2012 ........................................................................ 81 Baseline Constrained CIP Detail FY 2013 ........................................................................ 82 Baseline Constrained CIP Detail FY 2014 ........................................................................ 83 Baseline Constrained CIP Detail FY 2015 ........................................................................ 84 Baseline Constrained CIP Detail FY 2016 ........................................................................ 85 APPENDIX Fare Structure - Bus and Light Rail Services .................................................................... A-1 Fare Structure - Commuter Rail Services.......................................................................... A-2 North San Diego County Community Profile .................................................................... A-3 Glossary of Terms ........... ................................................................................................ A-6 2 NCTD FY11 Operating and Capital Budget Reader's Guide This Reader's Guide is intended to provide a general overview of the budget process and to assist the reader in navigating through the budget document. BUDGET PREPARATION Every year, NCTD develops its personnel, operating and capital plans for the upcoming fiscal year. The product of this effort is an approved fiscal year budget. The budget outlines the expected funding sources and expenses that represent NCTD's commitment to transit projects and services. Budget preparation takes approximately nine months. Work typically begins in October with project managers submitting projects to be considered in the 5-year Capital Improvement Program budget. The operating budget cycle begins in January with revenue projections and culminates in June with a Public Hearing and Board approval of the budget. October November Nov - Dec January Jan - Feb Chiefs and Managers Budget Staff Chiefs and Managers SANDAG Chiefs and Managers Prepare and submit new and revised CIP requests Compile CIP List Review CIP and rank projects Release revenue projections Prepare and submit draft operating budgets February March Mid March March - April May Budget Staff Chiefs and Managers Board of Directors Budget Staff Budget Staff Compile draft budget document Review and refine draft budget Discuss FY 2012 projected revenues and expenditures Finalize revenue projections and analyze budget Prepare draft budget document for public review May19 May 26 June 17 June 23 Board of Directors Budget Staff SANDAG Transportation Committee Board of Directors Review budget draft document Publish draft budget document for public viewing Reader's Guide Review final budget for funding Hold public hearing and adopt budget 3 Reader's Guide cont. The Budgeting department is responsible for distribution of budget instructions and materials to each division and department for the operating budget as well as budget instructions and materials for the Capital Improvement Program (CIP). All departments coordinate their efforts to facilitate a budget process that is focused on achieving the District's short-term and long-term goals and objectives. The operating budget is prepared from the bottom up to arrive at a function-level and then a Districtlevel budget. Function budgets are prepared and reviewed first by department management before being submitted to the Budget department for compilation at the division and district level. The Manager of Budget Analysis and Reporting works closely with the Executive Team in conducting detailed reviews and analysis of the various departmental budgets. The group conducts an extensive review of the requested budgets and validates current and projected expenses in light of guiding principles, service assumptions and revenue estimates. It is during these sessions that all proposed staffing levels, programs, and line item expenses are justified. Because capital projects can require a significant investment and potential ongoing commitment of funds, capital budgets are given separate attention. Before a capital project is programmed in the budget, it must go through the capital submission and review process. All projects are rated and ranked according to established criteria. All capital programs are prioritized on how well they meet the District's goals and objectives. This includes an evaluation of the sources and limitations of funding. Many capital programs meet criteria for external grant funding. The District aggressively seeks all sources of outside grant funding for capital projects before committing internal funds for capital projects. The completed budgets are then reviewed at the policy level by the Board of Directors to assure the appropriateness of programs and expenses and to assure they meet District goals and objectives for the upcoming budget year. After final budget adjustments, the Executive Team presents the operating budget to the NCTD Board for consideration and review. As a result of the creation of a Regional Transportation Planning Authority for the San Diego region in 2003-04, beginning in 2005, NCTD must also coordinate its annual budget process with the Regional Transportation Planning Authority, SANDAG. The District also makes the budget available for public review and comment for at least 15 days prior to holding a public hearing. After the public review and comment period and the public hearing, the operating budget and CIP are presented to NCTD's Board for final consideration and adoption. BUDGET CONTROLS NCTD maintains budget control through the formal adoption of an operating budget for its sole fund, an Enterprise Fund, and its Capital Improvement Program (CIP). The operating budget is prepared in conformity with generally accepted accounting principles. Following approval, the budget is incorporated into the accounting system, where the budget is compared with actual performance throughout the fiscal year. Any unexpended appropriations automatically lapse at the end of the fiscal year. The budget is an evolving document that will change as economic and business conditions warrant. Changes to the budget take the form of budget transfers or Board approved amendments. Budget transfers do not change the total appropriated amount and do not require Board action, with the exception of additional capital outlays, which require Board approval. Depending on the budget category affected by the transfer, approval may be granted at the division chief level or by the Executive Director as follows: 1) division chiefs have the discretion to reapportion funds between certain line items within a department or between departments in the division but may not exceed the total appropriated amounts; 2) the Executive Director may transfer funds between divisions but not exceed the total appropriated amounts. Budget amendments are adjustments to the total budget amount and require formal action by the Board of Directors. 4 NCTD FY11 Operating and Capital Budget Reader's Guide cont. BASIS OF ACCOUNTING AND FINANCIAL PRINCIPLES NCTD's accounting records are maintained in full accordance with Generally Accepted Accounting Principles (GAAP) as established by the Government Accounting Standards Board (GASB). The District utilizes a single Enterprise Fund for operating and capital purposes. Accordingly, the District does not have traditional "Fund Balances" typically found at other government agencies. The Enterprise Fund is used to account for operations that are financed and operated in a manner similar to a private business enterprise where the expenses, including depreciation, of providing goods or services to the general public on a continuing basis are financed or recovered through user charges and grants. Although the District does budget for capital improvement projects, the related capital outlays are recorded as increases in "Capital Assets" and "Net assets - Invested in capital assets" on the statement of net assets of the Enterprise Fund. NCTD uses the accrual basis of accounting in its audited financial statements. The budget for the Enterprise Fund is also prepared with the accrual basis except for depreciation expense, which is not budgeted. Accrual accounting records financial events based on economic activity rather than financial activity. Revenues are recognized when they are earned and realized, regardless of when actual payment is received. Expenses are recognized when incurred, regardless when they are actually paid. NCTD's financial principles include: Ongoing Operations - Fund ongoing operations with ongoing revenues in a changing environment where safety, compliance and effectiveness are paramount. Budget - Adopt an annual balanced budget where total revenues are equal to or exceed total expenses to support service, operations and capital decisions by engaging staff and Board members to identify significant budget issues, focus on projected and anticipated revenues and expenses, integrate business capital needs into the capital program that would focus on maintaining an adequate level of capital investment and implement effective financial analysis, prioritization and performance-based budgeting. Additionally, coordinate long range financial planning with SANDAG, the Regional Transportation Authority, which provides guidance in planning, programming, and construction to ensure an integrated, regional transportation framework for San Diego County. Revenues - Revenues must be conservatively estimated annually having regard for Federal, State and local conditions, considering new sources and assessing fare and route changes as needed while using one-time revenues for one time expenses or for capital investments. Expenses - Expenses must be planned so that they support effective transportation by identifying priority services, establishing service levels, delivering efficient service and ensuring fiscal stability producing longterm effectiveness. Capital Improvement Program - Adopt a Capital Improvement Program (CIP) annually that is based on need, is in accordance with the long-term capital program, has received scrutiny for cost, value and priority to the District, has been reviewed for relevant details of each item to conform to CIP requirements, funding only those projects where revenues are already committed or where budget savings or one-time revenues can pay for them and where consideration has been given to all funding sources and grants where applicable. Inter-governmental Relations - Maintain good relations with other government bodies that encourage shared use of facilities, joint purchases and shared cost of service delivery to the end that transit services, inter-connections and accessibility will be improved, unfunded legislative mandates will be opposed and transit-promoting initiatives will be supported. Debt - Short and long term debt may be used for valid business reasons including temporary cash flow and emergency shortfalls and urgent unfunded capital improvements provided the Board adopts the debt by resolution and an analysis is done on the fiscal effect on the District's operations. Accounting and Finance - Records and reports shall be maintained in accordance with GAAP, including but not limited to the maintenance of an effective capital asset system, regular financial reports to the Reader's Guide 5 Reader's Guide cont. Board, an annual audit together with an audit opinion and management letter and annual Board adoption of an investment policy emphasizing safety and liquidity before yield. SECTIONS OF BUDGET DOCUMENT The major sections of the budget document are: BOARD OF DIRECTORS This section includes a listing of the Board of Directors. DISTRICT OVERVIEW This section includes a Budget Message from the Executive Director, a map of the service area served by NCTD, a narrative of NCTD's various services and activities, and a summary level organization chart. OPERATING BUDGET SUMMARY This section includes district-wide summary charts and graphs of the budget. An operating summary by cost classification and by department comparing the FY 2012 budget with FY 2011 year end estimates and FY 2011 budget is included in this section. Budget assumptions are used as the foundation for developing the budget and are shown in narrative and graph format. Also included is Operational Statistics which contains ridership and other performance statistics for FY 2012 with a comparison to FY 2011 year end estimates. A debt overview and personnel summary table are also located in this section. DIVISION BUDGETS This section includes information on the various divisions of NCTD, with an organization chart of each division, the total number of full time equivalent employee positions assigned to each division, a description of its scope and purpose. Also included in this section are tables showing actual expenses for FY 2009 and FY 2010, budgeted expenses for FY 2011, estimated expenses for FY 2011, and the budgeted expenses for FY 2012. These tables are organized by department and by cost classification, along with a narrative of budget highlights. CAPITAL IMPROVEMENT PROGRAM This section contains an overview of NCTD's Capital Improvement Program (CIP), a summary of NCTD's five-year Baseline CIP for the fiscal years 2012-2016, and detailed baseline CIP schedules for fiscal years 2012-2016. APPENDIX This section contains information on fare structures on all the transit services, a community profile and a glossary of terms. 6 NCTD FY11 Operating and Capital Budget Budget Award The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to North San Diego County Transit District, California for its annual budget for the fiscal year beginning July 1, 2010. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. Reader's Guide 7 This page left intentionally blank NCTD FY11 Operating and Capital Budget Board of Directors NCTD Board Chairman Council Member Chris Orlando City of San Marcos 1 Civic Center Drive San Marcos, CA 92069-2949 email: corlando@ci.san-marcos.ca.us Phone: (760) 744-1050 ext 3105 Mayor Jim Wood City of Oceanside 300 N. Coast Highway Oceanside, CA 92054 email: jmwood@ci.oceanside.ca.us Phone: (760) 435-3060 NCTD Board Vice-Chairman Supervisor Bill Horn County of San Diego, 5th District County Administration Center 1600 Pacific Hwy, Room 335 San Diego, CA 92101 email: Bill.Horn@sdcounty.ca.gov Phone: (619) 531-5555 Council Member Dave Roberts City of Solana Beach 635 So. Highway 101 Solana Beach, CA 92075 email: droberts@cosb.org Phone: (858) 720-2496 Council Member Mark Packard City of Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 92008 email: mstro@ci.carlsbad.ca.us Phone: (760) 434-2830 Council Member Ed Gallo City of Escondido 201 N. Broadway Escondido, CA 92025 email: egallo@escondido.org Phone: (760) 839-4638 Council Member Mark Filanc City of Del Mar 1050 Camino Del Mar Del Mar, CA 92014 email: mfilanc@delmar.ca.us Phone: (858) 755-9313 Council Member Steve Gronke City of Vista 600 Eucalyptus Avenue Vista, CA 92084 email: sgronke@ci.vista.ca.us Phone: (760) 639-6130 Council Member Jerome Stocks City of Encinitas 505 S. Vulcan Avenue Encinitas, CA 92024-3633 email: jstocks@ci.encinitas.ca.us Phone: (760) 633-2622 Board of Directors 9 This page left intentionally blank 10 NCTD FY11 Operating and Capital Budget i II I fj fifl .-L a 5. Dear Members of the North County Transit District Board: I am pleased to present you the Fiscal Year (FY) 2012 Operating Budget and Capital Improvement Program for NCTD. The budget is balanced, with revenues and expenses each totaling $85.9 million and a capital improvement program of $13.9 million. This document provides the District's FY 2012 financial framework and serves as a source of information for customers, taxpayers, Board members, and other stakeholders. The budget complements the FY 2011 Business Plan, which details the manner in which NCTD will accomplish its strategic goals. In FY 2011, NCTD continued to provide its customers with the best service while also achieving the maximum return on the public investment. NCTD signed two contracts, which are estimated to save the District a total of nearly $53 million over a seven year period. July 1, 2010, marked the beginning of a seven-year contract with First Transit to operate the BREEZE. This contract alone is projected to save NCTD approximately $44 million over the term of the contract. Phase I of the contract, which occurred in FY 2011, included the transition of the bus operators and part of the fleet operations. Phase II, the second and final phase, began on the first day of FY 2012 and includes the final elements of the transition of BREEZE operations and maintenance to First Transit. Also in FY 2011, NCTD engaged in additional cost-saving measures by preparing for the transition of LIFT operations to the American Logistics Company (ALC), which occurred on July 1, 2011. This contract marks a shift in NCTD's previous business model, and transitions NCTD from a dedicated fleet to a brokerage model while maintaining high-quality service for NCTD's customers. The six-year contract for LIFT operations is projected to save the District nearly $8.7 million. In addition to engaging in cost-saving measures, NCTD is working to increase revenues while better serving the community. While other transit agencies are considering fare increases and decreasing services, NCTD has taken the opposite approach in an effort to increase ridership. Beginning in January 2011, NCTD reduced fares on the BREEZE, COASTER, and LIFT through the end of FY 2012. In addition, the District has increased service for FY 2012. NCTD has implemented expanded Sunday COASTER service and extended SPRINTER evening and weekend service. Even with these changes, the District reduced its personnel expenses, including salaries and benefits, to only 13% of the total operating budget, significantly down from 41% of the operating budget in FY 2010. In addition, the District increased its capital improvement program budget by $2 million from FY 2011 to FY 2012, illustrating the District's commitment to invest in infrastructure and new projects. District Overview 11 In short, NCTD continues on track to maintain its financial stability. Our five-year budget forecast is positive, assuming an improving local economy and stable funding. We thank you for your guidance as NCTD continues to deliver safe, convenient, reliable, and userfriendly public transportation services. Sincerely, Matthew O. Tucker Executive Director 12 NCTD FY11 Operating and Capital Budget Service Area Map s. I amfl. . . Ivlra . . .1. . nun. . 13 District Overview This page left intentionally blank 14 NCTD FY11 Operating and Capital Budget Services and Activities BACKGROUND The North San Diego County Transit Development Board (NSDCTDB) was created by California Senate Bill 802 on September 20, 1975 and was renamed the North County Transit District (NCTD) in January, 2006. NCTD was created to plan, construct and operate, directly, or through a contractor, public transit systems in its area of jurisdiction. On January 1, 2003, a state law was enacted (SB 1703) that essentially transferred future transit planning, programming, development and construction to the San Diego Association of Governments (SANDAG), San Diego's Regional Planning Agency. NCTD provides integrated public transit service in the North San Diego County region with its BREEZE (Bus), LIFT (ADA), COASTER (Commuter Rail), and SPRINTER (Light Rail) services. Services North County Transit District provides bus and train service for people in the northern half of San Diego County -- from the Camp Pendleton Marine Corps Base, to the cities of Escondido, San Marcos, Vista, Oceanside, Carlsbad, Encinitas, Solana Beach and Del Mar, as well as unincorporated parts of the county. The total population of NCTD's 1,020 square mile service area is estimated to be 884,000. BREEZE bus service operates throughout the area, as does ADA paratransit service known as LIFT. The COASTER commuter rail service operates along the coastal rail line serving the coastal communities between Oceanside and San Diego. The SPRINTER light rail service operates between Escondido and Oceanside with stops in Vista and San Marcos. NCTD provides BREEZE bus service to many shopping malls, beaches, major attractions and employment centers throughout North County, such as Legoland in Carlsbad, the San Diego Zoo Safari Park near Escondido, and the Marine Corps Base at Camp Pendleton. Special BREEZE shuttle busses are also provided for District Overview 15 Services and Activities cont. connections from the Solana Beach train station to Del Mar Fairgrounds. NCTD provides connecting service to other transit agencies including: Orange County Transportation in San Clemente; Metropolitan Transit Service (MTS) in San Diego via the Trolley and bus; Riverside Transit Association (RTA) buses; Metrolink commuter rail service and Amtrak trains connect at Oceanside Transit Center; Amtrak also connects in Solana Beach; Greyhound buses connect at Oceanside as well as Escondido Transit Center. NCTD BREEZE buses, SPRINTER trains and LIFT also connect at transit centers throughout the growing region. FIXED ROUTE BUS SERVICE - BREEZE Since 1977, NCTD has provided safe, efficient bus service to more than 300 million passengers, The BREEZE currently operates 34 regular routes in the North County service area, from early morning to late at night - seven days a week. NCTD has replaced 100% of its BREEZE bus fleet since 1997. Of the current fleet of 144 buses, more than half of the vehicles are cost-efficient environmentally friendly Compressed Natural Gas (CNG) models. CNG buses require more maintenance checks than diesel buses, but the environmental benefits outweigh the extra effort involved. In the fall of 2010 NCTD replaced 24 of the existing bus fleet with new smaller buses. The shorter or small buses are more fuel efficient and cost effective vehicles. They are 28 feet long and seat 19. First Transit is the contract operator responsible for operating and overseeing maintenance of the buses. All of the buses in the fleet are equipped with bicycle racks giving passengers the ability to bike and ride to their destinations. All NCTD BREEZE buses are accessible with low floors, ramps, or wheelchair lifts to assist the elderly and those passengers with disabilities 16 NCTD FY11 Operating and Capital Budget Services and Activities cont. to board and ride with ease. "Compass Card" Farebox equipment is installed on all NCTD buses. This regional smartcard technology allows passengers to use the fare card for seamless travel throughout San Diego County on all public transportation. The District recently underwent a significant mobilty plan that stduied, evaluted and revised existing bus routes. As a result of the plan, several changes and improvements are being made to the BREEZE bus routes with the 1st phase of implementation to occur in fall of 2011, and the second phase planned to occur in early 2012. ADA PARATRANSIT SERVICE - LIFT All NCTD vehicles, the buses, the vans, and the trains are equipped with ramps, low floors, or lifts to make boarding and riding the vehicles easy for everyone. Passengers, who, because of their disability are unable to access fixed route service can travel throughout NCTD's service area and connect with neighboring transit services. Throughout NCTD's service area, paratransit service operates using lift-equipped vans and large sedans. The lifts can be used to assist standing passengers who need assistance boarding, as well as those using wheelchairs and other mobility aids. Passengers who receive an ADA certification may call and schedule a ride from the curbside nearest their home, to the curbside nearest to their destination. This service also connects with bus or train service at the transit centers. In February 2011, NCTD executed a contract with American Logistics Company (ALC) to assume the LIFT contract beginning in July. The new contract uses an innovative coordinated transportation model for LIFT services. Using the coordinated transportation model, ALC will provide trip scheduling and dispatching, while trips will be provided by subcontracted transportation providers in the North County area. Persons who are District Overview 17 Services and Activities cont. certified to use LIFT and obtain an NCTD paratransit photo ID are able to ride the BREEZE buses and SPRINTER free. If they have a Personal Care Attendant (PCA) noted during the certification process, the PCA also rides free on BREEZE and SPRINTER services. NCTD also offers Mobility/Travel Training and Senior Transit Buddies. Mobility training provides personalized training to individuals with disabilities, who use wheelchairs or scooters on NCTD's transit system. The training teaches individuals how to maneuver aboard NCTD's buses and trains. The Senior Transit Buddy program is a safe and personal one-on-one introduction to the NCTD transit system through the assistance of trained and qualified transit buddy volunteers. This program helps seniors gain the tools and confidence to travel safely on NCTD services. NCTD recently implemented a Bus Stop/Path of Travel Accessibility Program. A complete list is now available of accessibility features for all NCTD bus stops and travel paths. With trip planning assistance of an NCTD accessibility specialist and the bus stop travel path information, LIFT certified riders are better prepared to ride fixed route service. COMMUTER RAIL SERVICE - COASTER The COASTER provides commuter rail service Monday through Saturday, north and south along the San Diego County coast between Oceanside and San Diego. In April of 2011 Sunday service was added on a trial bases. The added service was highly received and due to the resonpse the service has been permanently added for the FY 2012 year. The COASTER also provides trains that run for every Padres home game, including special trains on Sundays. Eight stations provide service points along the route, and connections can be made to the MTS trolley and buses at San Diego's Old Town and Santa Fe stations. Passengers can connect 18 NCTD FY11 Operating and Capital Budget Services and Activities cont. with Metrolink and Amtrak train service north to Orange County and Los Angeles at NCTD's northernmost stop on the railroad, the Oceanside Transit Center. Currently, the COASTER service is provided by seven locomotives and 28 bi-level passenger coaches. TransitAmerica Services, Inc. is the contract operator responsible for maintaining and operating the trains. The COASTER carried approximately 1.4 million passengers in FY 2011, carrying more than 6,000 passengers on busy summer weekdays and 2,500 on weekends, when baseball fans take advantage of special mid-week service and weekend service to San Diego Padres games. LIGHT RAIL SERVICE - SPRINTER The SPRINTER light rail line is NCTD's newest transit mode with operations beginning in March 2008. The European-style light rail vehicles run on 22 miles of rail that provides an east-west mobility link between Oceanside, Vista, San Marcos and Escondido. The SPRINTER features short convenient trips to 15 stations, averaging 3-5 minutes between stations, and a 53 minute travel time from end to end. Each train has a maximum capacity of 226 passengers and two can be linked together to offer a capacity of more than 450 passengers. Passenger service runs seven days a week from approximately 4:00am to 9:00pm (later on weekends). Weekday service runs every 30 minutes and weekend trains run 30 minute frequencies during peak travel times from 10:00am to 6:00pm. The SPRINTER offers easy connections to the COASTER commuter rail, BREEZE bus service, Amtrak, Metrolink, Greyhound and a future Bus Rapid Transit project planned in Escondido. The operations and maintenance of the trains is contracted out to Veolia Transportation. Activities VEHICLE MAINTENANCE - TRAINS NCTD is responsible for maintaining and operating seven locomotives and 28 coach cars, the service for maintaining these trains is contratracted to TransAmerica Services, Inc.. TransitAmerica Services, Inc. maintains COASTER rail equipment at an NCTD-owned facility on Camp Pendleton Marine Corps Base. Equipment used for Stuart Mesa is massive and specialized. Booms, cranes and lifts within the facility assist with replacement of heavy parts. Dedicated contract mechanics and service workers perform daily train-washing and exterior and interior maintenance and repair. Specialty equipment is used to maintain the railroad itself, clearing vegetation away from the tracks, and replacing ties while situated on the track itself. The 40,000 square foot SPRINTER operations facility is located in Escondido and was constructed specifically to house the operations center and to maintain the SPRINTER trains. The operations area is home of the train control center and security monitoring center for the entire SPRINTER line as well as storage, training rooms, lockers, and office areas for SPRINTER employees. The maintenance area can house up to four train sets. Two structurally supported tracks allow maintenance crews access underneath and on top of trains to fully service the vehicles via pits, suspended platforms and overhead bridge cranes. The pits are fully functional with integrated electrical service, compressed air and lube oil systems. District Overview 19 Services and Activities cont. RAIL MAINTENANCE OF WAY NCTD owns the main north-south line between the Orange County border and the northern border of the City of San Diego, which is 41 miles of track. Metropolitan Transit Systems owns the north-south line from the northern border of the City of San Diego to downtown San Diego, which is 21 miles of track. NCTD also owns the east-west line between Oceanside and Escondido, which is 22 miles of track. Collectively, the line is known as the San Diego Northern Railway. The COASTER operates on the north-south line, and the SPRINTER operates on the east-west line. NCTD is responsible for maintaining both lines In addition to the track, NCTD is responsible for numerous railroad bridges along the coast, the railroad bed, the sidings, grade crossings, turnouts, culverts and signals, the land alongside the track, as well as commercial property along the right of way. Track maintenance equipment and personnel are housed in a facility located in the eastern part of the City of Oceanside. VEHICLE MAINTENANCE - BUSES NCTD contracts with First Transit to operate its 144 buses and numerous other transit support vehicles. To maintain this fleet, mechanics work around the clock at two bus maintenance sites and one van maintenance site. In the bus yards, NCTD has CNG (Compressed Natural Gas) fueling sites, administration buildings, maintenance buildings, and parking areas for buses, service vehicles, and bus operators' vehicles. Inside the maintenance buildings are bus repair bays, pits for general servicing, bus lifts, hoists, fork lifts, engine repair benches, a body shop, a parts inventory storeroom, and a paint shop. Maintenance continues around the clock to keep the buses in tip-top shape and keep road calls and service interruptions to a minimum. In addition to servicing and repairing the bus fleet, the maintenance crews also maintain a fleet of service vehicles, administrative automobiles, fork lifts, ride-on sweepers, and special vehicles that can operate on the railroad. FACILITIES MAINTENANCE Facility Maintenance direction and supervision is now contracted out to First Transit with oversight provided by the NCTD Contract Operations and Maintenance Department. NCTD has two main administration buildings in Oceanside, three bus maintenance buildings at two sites in Oceanside and Escondido, three bus transit centers, eight multi-modal train stations along the coastal railroad, 15 train stations along the inland railroad, two train maintenance facilities, two CNG fill stations, two bus washers, and all the adjacent land and parking lots. Most of the facilities are maintained, cleaned and repaired by Facilities Maintenance crews, using specialized equipment like ride-on sweepers and portable boom trucks. They keep the maintenance buildings in top-notch condition considering that buses and trains come in and out for repairs and routine maintenance, usually covered with city dirt and dust in addition to enduring hot and cold climates including salt air, all in the same day. In addition, they contract and supervise major maintenance projects such as roof replacements, parking lot paving and striping, bus shelter replacements and repairs, heating and air-conditioning repair and replacement, as well as painting and repair of administration buildings. 20 NCTD FY11 Operating and Capital Budget Services and Activities cont. TRANSIT ENFORCEMENT Transit Enforcement enforces codes, payment of fares and provides security and customer assistance. The department also acts as central dispatch in emergencies, and monitors district closed circuit televisions (CCTV), railroad and regional radio communications, Digicon and SCADA systems, and also provides emergency communication and coordination with NCTD, and local state and federal emergency responders. SECURITY Security at the train stations, the parking lots, and the bus transfer centers is provided by a security patrol agency under contract, and are patrolled by local law enforcement in order to ensure customer security and safety. Video security cameras are also utilized by NCTD staff to monitor and notify security patrol or local law enforcement in case of incidents. FINANCE AND ADMINISTRATION The Finance and Administration Division provides financial and administrative support, risk management, and information technology services to District departments. Accounting, Budget and Fare Collection, Management Accounting, and Human Resources handle the day to day financial transactions and records, budgeting, financial reports, capital projects, grants, billing, fare revenue collection, human resources and payroll. The contracts and procurement staff contract for goods and services for NCTD and manage contracts and competitive bidding. Risk and insurance management staff administer NCTD's safety policy, and manage claims and procure insurance against the risk of vehicle physical damage, public liability and property damage. Information Technology staff provide implementation of all technology projects, ensures the integrity, availability and security of all NCTD mission critical systems, and provides technical support to end users. In addition, the division manages various district-wide audits and fulfills reporting requirements to comply with governmental rules and regulations. COMMUNICATIONS, OUTREACH AND CUSTOMER SERVICE The Communications, Outreach and Customer Service Division has the overall responsibility for oversight of marketing, promotions, customer service, and community relations. This includes communicationg all exisitng, new and upcoming transit information. District Overview 21 Organization Chart North County Transit District Board Executive Director General Management Inter-Governmental Affairs Real Estate Chief Financial & Administrative Officer Chief of Bus Operations, Planning and Safety Communications, Chief of Rail Operations Outreach and Customer Service Accounting Contract Operations and Maintenance Commuter Rail Services Budgeting & Fare Collection Fleet Maintenance Light Rail Services Risk and Insurance Management Facility Maintenance Maintenance Of Way Information Technology Transit Enforcement Contracts and Procurement Service Planning Management Accounting System Safety and Compliance Human Resources Service Quality and Accessibility Customer Service The accompanying information included in this budget document has been restated to reflect the new organizational structure for all periods presented. This has been done to enhance comparability between the periods and to provide a more meaningful presentation of data. Readers of this document should be aware that a comparison of the information contained in this document does not lend itself to comparison with previously published budget documents. 22 NCTD FY11 Operating and Capital Budget Operating Budget by Classification SUMMARY (millions) TOTAL REVENUES FY 2009 Actual $ TOTAL EXPENSES ANNUAL SURPLUS (DEFICIT) FY 2010 Actual 86.6 $ 81.1 $ 5.5 80.8 $ 78.6 $ FY 2009 Actual DETAIL FY 2011 Budget 2.2 FY 2011 Y/E Est Actual 80.8 $ 80.8 $ FY 2010 Actual 0 FY 2011 Budget 82.6 $ 4.5 % CHANGE FY12 TO FY11 Budget 85.9 4.0% 6% 85.9 78.1 $ % CHANGE FY12 TO FY11 Est Actual FY 2012 Budget 10.0% 6% $ FY 2011 Y/E Est Actual 0 % CHANGE FY12 TO FY11 Est Actual FY 2012 Budget % CHANGE FY12 TO FY11 Budget REVENUES Passenger Fares $ 18,258,384 $ 17,092,486 $ 17,170,328 $ 16,865,106 $ 16,812,263 Other Operating Revenue Subtotal Operating Revenue 9,517,918 9,763,077 9,401,004 9,559,529 10,576,246 (0.3%) (2%) 10.6% 13% $ 27,776,302 $ 26,855,563 $ 26,571,332 $ 26,424,635 $ 27,388,509 TDA Sales Tax 26,143,501 23,121,725 25,481,758 25,481,758 28,298,797 11.1% 11% TransNet 10,072,781 10,511,496 9,191,604 9,734,072 10,110,057 3.9% 10% FTA 15,939,203 7,529,062 18,729,641 17,282,678 14,765,717 (14.6%) (21%) STA 0 2,972,551 5,900,000 2,972,551 4,919,122 65.5% (17%) Revenue at Risk 0 0 0 0 N/A (100%) 0 4,763,524 250,000 250,000 0 (100.0%) (100%) 863,334 434,269 460,000 400,000 400,000 0.0% (13%) Non-recurring Federal Grants (ARRA) Other State and Federal Subtotal Grants Revenue $ 58,518,819 $ 53,832,627 $ 54,113,003 $ 56,121,059 $ 58,493,693 Investment Income 304,429 TOTAL REVENUES $ 123,214 99,000 98,175 100,000 1.9% 1% 0 Gain on Disposal of Capital Assets Subtotal Other Nonoperating Rev. (5,900,000) 15,530 18,000 13,000 0 (100.0%) (100%) 4.0% 6% 6,857,472 (28.9%) (29%) 304,429 $ 138,744 $ 117,000 $ 111,175 $ 100,000 $ 86,599,550 $ 80,826,933 $ 80,801,335 $ 82,656,869 $ 85,982,202 EXPENSES Salaries & Wages $ 22,443,923 $ 21,981,286 $ 9,645,911 $ 9,651,041 $ Employee Benefits 12,708,266 11,619,769 5,887,241 6,258,137 4,519,207 (27.8%) (23%) Professional Services 15,306,060 12,871,344 15,150,217 12,760,779 15,456,668 21.1% 2% Materials and Supplies 8,361,448 7,322,301 8,309,337 6,447,565 8,463,662 31.3% 2% Utilities 1,867,895 1,809,660 1,904,398 1,820,494 1,965,126 7.9% 3% Casualty and Liability 3,304,456 3,241,373 2,965,421 2,945,371 3,398,676 15.4% 15% Taxes 432,875 Advertising and Misc. 434,620 616,172 496,664 634,431 27.7% 3% 14,124,981 Purchased Transportation 15,444,564 33,156,029 34,837,006 39,511,551 13.4% 19% 616,184 500,344 432,060 Workers' Comp (366,126) 469,462 Leases and Rentals 717,942 (376,318) Expense Reclass/Reimbursements 463,112 499,900 (1,325,000) (49,199) 390,067 568,659 13.7% (8%) 2727.3% 5% 517,550 32.7% 4% (1,391,000) 555,991 1,675,415 1,100,000 860,641 1,000,000 16.2% (9%) Debt Service 1,459,585 1,368,550 1,387,600 1,268,000 1,300,000 2.5% (6%) Contingency 0 0 887,925 0 3,180,200 N/A 258% TOTAL EXPENSES $ 81,090,684 $ 78,583,811 $ 80,801,335 $ 78,186,910 $ 85,982,202 10.0% 6% ANNUAL SURPLUS (DEFICIT) $ 5,508,866 $ 2,243,122 $ 0 $ 4,469,959 $ 0 * FY 2011 Budget as adopted on June 17, 2010 Operating Budget Summary 23 Operating Expenses by Division and Department FY 2011 Budget FY 2011 Y/E Estimate % CHANGE % CHANGE FY12 TO FY11 FY12 TO FY11 Est Actual Budget FY 2009 Actual FY 2010 Actual $ 1,899,520 $ 1,851,006 860,952 9.9% 11% 28,772 27,574 39,350 24,070 29,350 21.9% (25%) 38,827 0 $ 1,967,119 237,238 0 $ 2,115,817 346,539 333,823 $ 1,492,818 227,320 161,528 1,196,311 276,479 484,834 $ 1,651,615 21.6% 200.2% 38.1% (20%) 45% 11% $ $ EXPENSES FY 2012 Budget GENERAL MANAGEMENT General Management Board of Directors Inter-Governmental Affairs Real Estate TOTAL GENERAL MANAGEMENT $ 773,107 $ $ 783,393 $ BUS OPERATIONS, PLANNING AND SAFETY Chief of Bus Operations, Planning and Safety 0 Contract Operations and Maintenance 0 $ 0 Fleet Maintenance 0 264,356 $ 27,331,594 184,953 $ 240,054 29.8% (9%) 34,823,830 28,697,033 21.3% 27% 10,862,549 10,716,755 4,044,959 4,247,008 0 (100.0%) (100%) Facility Maintenance 5,226,745 5,069,236 1,885,556 1,849,454 0 (100.0%) (100%) Transit Enforcement 4,643,582 2,637,674 2,541,222 2,627,988 2,792,705 6.3% 10% 372,661 422,601 640,636 607,790 831,249 36.8% 30% 144,701 3,703,008 $ 43,816,347 173,225 3,859,543 $ 42,524,566 208,170 3,995,923 $ 40,912,416 179,333 3,700,261 $ 42,093,820 186,394 2,841,157 $ 41,715,389 3.9% (23.2%) (0.9%) (10%) (29%) 2% $ $ $ $ $ Service Planning System Safety and Compliance Service Quality and Accessibility TOTAL BUS OPERATIONS, PLANNING AND SAFETY RAIL OPERATIONS Chief of Rail Operations 653,699 45.9% 31% 10,271,517 9,702,027 11,093,310 10,025,682 12,144,140 21.1% 9% 7,992,064 2,463,055 $ 21,038,778 7,557,622 2,362,345 $ 19,957,547 8,409,714 2,893,720 $ 22,897,380 7,596,651 2,637,195 $ 20,707,571 8,423,932 2,906,667 $ 24,128,438 10.9% 10.2% 16.5% 0% 0% 5% $ $ $ $ $ (26%) Commuter Rail Services Light Rail Services Maintenance of Way TOTAL RAIL OPERATIONS 312,142 335,553 500,636 448,043 FINANCE AND ADMINISTRATION Chief Financial and Administrative Officer 398,137 (9.8%) 630,468 799,188 616,456 564,563 598,726 6.1% (3%) Budgeting and Fare Collection 1,672,402 1,671,034 1,888,124 1,641,784 1,635,235 (0.4%) (13%) Risk and Insurance Management 4,357,085 4,495,877 3,799,257 3,679,678 4,208,963 14.4% 11% Information Technology 1,774,659 1,705,255 1,762,367 1,849,344 2,195,874 18.7% 25% 411,777 403,998 591,311 555,245 616,745 11.1% 4% 289,422 1,832,706 $ 11,243,272 215,783 1,775,780 $ 11,302,730 66,851 1,991,758 $ 11,250,843 147,488 2,121,451 $ 11,001,118 104,902 2,101,998 $ 11,860,580 (28.9%) (0.9%) 7.8% 57% 6% 5% 1,307,036 665,317 $ 1,972,353 1,260,582 659,508 $ 1,920,090 1,465,812 680,168 $ 2,145,980 16.3% 3.1% 11.8% 12% 2% 9% 887,925 $ 0 $ 3,180,200 N/A 258% Accounting Contracts and Procurement Management Accounting Human Resources TOTAL FINANCE AND ADMINISTRATION 274,752 235,816 534,719 441,565 COMMUNICATIONS, OUTREACH AND CUSTOMER SERVICE Communications and Outreach Customer Service TOTAL COMM, OUTRCH AND CUST SRVC 829,130 736,454 $ 1,565,583 741,139 573,461 $ 1,314,600 Contingency $ $ Debt Service $ 1,459,585 $ 1,368,550 $ 1,387,600 $ 1,268,000 $ 1,300,000 2.5% (6%) EXPENSE TOTAL $ 81,090,685 $ 78,583,811 $ 80,801,335 $ 78,186,910 $ 85,982,202 10.0% 6% 24 0 0 $ NCTD FY11 Operating and Capital Budget 25 Operating Budget Summary Operating Expenses by Mode % CHANGE FY12 TO FY11 Est Actual % CHANGE FY12 TO FY11 Budget FY2009 Actual FY2010 Actual FY 2011 Budget FY2011 Y/E Est Actual FY 2012 Budget $ 41,339,044 $ 42,187,478 $ 39,198,362 $ 41,499,842 $ 41,977,534 1.2% 7% 3,750,653 3,934,193 4,096,183 3,788,332 3,285,339 (13.3%) (20%) COASTER 16,466,352 15,417,955 16,748,227 15,605,232 18,123,088 16.1% 8% SPRINTER 15,050,977 14,122,597 14,395,271 12,871,875 14,290,430 11.0% (1%) 2,372,506 2,352,771 3,270,236 2,491,742 3,057,945 22.7% (6%) 651,566 568,817 817,531 661,887 767,666 16.0% (6%) $ 79,631,099 $ 78,583,811 $ 78,525,810 $ 76,918,911 $ 81,502,002 6.0% 4% EXPENSES BY MODE BREEZE LIFT Coastal Railroad Inland Railroad EXPENSE TOTAL 1 Debt Service not included in expenses 2 Contingency not included in expenses FY 2012 Budget BREEZE FY2011 Y/E Est Actual LIFT COASTER FY 2011 Budget SPRINTER Coastal Railroad Inland Railroad FY2010 Actual FY2009 Actual $- $10 $20 $30 $40 $50 $60 $70 $80 $90 Expense in Millions 26 NCTD FY11 Operating and Capital Budget Revenue by Mode and Type % CHANGE % CHANGE FY12 TO FY11 FY12 TO FY11 Est Actual Budget FY 2009 Actual FY 2010 Actual FY 2011 Budget FY 2011 Y/E Est Actual FY 2012 Budget $ 41,369,414 $ 38,260,624 $ 39,141,983 $ 41,587,409 $ 43,113,686 8,526,025 7,690,445 8,440,469 8,113,132 7,961,680 REVENUE BREEZE TOTAL Passenger Fares Other Revenues 1,092,982 LIFT TOTAL $ Passenger Fares 1,365,390 348,602 587,311 29,204,789 30,352,912 32,886,966 $ 4,118,303 $ 3,788,332 $ 3,557,883 504,631 501,332 479,812 (6.1%) (14%) 11.2% 9% (3.0%) (2%) 6.7% 6% 4.0% 6% 34,499,506 3,934,193 10% 652,500 31,750,408 Grants 3.7% 420,587 3,750,653 $ 484,516 Other Revenues 0 0 0 0 0 3,266,137 3,429,562 3,616,971 3,308,520 3,137,296 COASTER TOTAL $ 16,461,657 $ 15,415,873 $ 16,322,727 $ 16,034,223 $ 17,828,755 Passenger Fares 6,975,640 6,159,647 6,018,764 6,199,631 6,392,633 Grants Other Revenues 61,829 61,162 40,140 30,300 41,500 9,424,188 9,195,063 10,263,823 9,804,292 11,394,622 SPRINTER TOTAL $ 16,448,166 $ 14,065,208 $ 12,145,570 $ 12,248,018 $ 11,876,311 Passenger Fares 2,272,203 2,076,377 2,209,763 2,072,531 2,037,363 Grants Other Revenues 156,387 RAILROAD TOTAL $ 41,324 56,510 54,206 376,679 14,019,576 Grants 11,947,508 9,879,297 10,121,281 9,462,269 9,151,036 $ 9,072,752 $ 8,998,887 $ 9,605,567 8,511,150 9,095,331 9,072,752 8,998,887 9,605,567 58,509 55,705 0 0 0 $ 86,599,550 $ 80,826,933 $ 80,801,335 $ 82,656,869 $ 85,982,202 Other Revenues Grants REVENUE TOTAL 8,569,659 $ FY 2012 Proposed Budget BREEZE FY 2011 Y/E Est Actual LIFT FY 2011 Budget COASTER SPRINTER FY 2010 Actual Railroad MOW FY 2009 Actual $- $10 $20 $30 $40 $50 $60 $70 $80 $90 Millions Operating Budget Summary 27 Major Revenue Sources FY 2009 Actual FY 2011 Budget FY 2011 Y/E Est Actual FY 2012 Proposed Budget $ 17,092,485 $ 17,170,328 $ 16,865,106 $ 16,812,263 (0%) (2%) 7,734,399 Passenger Fares FY 2010 Actual $ 18,258,384 REVENUE SOURCE 8,253,671 7,915,020 8,188,654 8,770,567 7% 11% 19% Auxiliary Revenue Non-Transportation Revenue % CHANGE % CHANGE FY12 TO FY11 FY12 TO FY11 Est Actual Budget 2,087,948 1,648,150 1,602,984 1,482,050 1,905,679 29% Local Operating Grants 36,216,282 33,633,221 34,673,362 35,215,830 38,408,854 9% 11% State Operating Grants 297,254 3,037,359 5,900,000 2,972,551 4,919,122 65% (17%) (100%) Revenue at Risk 0 0 0 0 N/A 15,080,411 7,529,062 19,189,641 17,682,678 15,165,717 (14%) (21%) 6,924,872 9,632,985 250,000 250,000 0 (100%) (100%) $ 86,599,550 Federal Operating Grants (FTA) $ 80,826,933 $ 80,801,335 $ 82,656,869 $ 85,982,202 4% 6% Non Recurring Federal Grants TOTAL REVENUE (5,900,000) FY 2012 Proposed Budget Passenger Fares Auxiliary Revenue FY 2011 Y/E Est Actual Non-Transportation Revenue Local Operating Grants FY 2011 Budget State Operating Grants Federal Operating Grants (FTA) FY 2010 Actual Non Recurring Federal Grants FY 2009 Actual $- $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 Millions Passenger Revenue - Includes farebox revenues collected from monies deposited in the farebox by riders or through the sale of tickets and passes to the public. Auxiliary Revenues - Includes advertising, shared use of the railroad, dispatching services, and concessions. Non-Transportation Revenues - Includes interest income, lease revenue, permit and administrative fee revenues and other miscellaneous revenues. Local Operating Grants - Includes TDA (Transportation Development Act) sales tax funds that are generated by the 1/4 % sales tax collected in each region in the state for transportation purposes. Also includes TransNet funding, an additional 1/2 cent local sales tax to fund transportation programs for San Diego County which was created by Proposition A in 1987 and reauthorized by voters in 2004 to extend through 2048. State Operating Grants - Includes STA (State Transit Assistance) funds and other miscellaneous state funding. Federal Operating Grants - Includes FTA (Federal Transit Administration) Section 5307 and 5309 funding for preventive maintenance, ADA operations, transit planning, and fixed guideway (rail) modernization. Non-recurring Federal Operating Grants - Includes Congestion Mitigation and Air Quality (CMAQ) Improvements Program for FY 2008-2010 and the American Recovery and Reinvestment Act (ARRA) for FY 2009-2011. 28 NCTD FY11 Operating and Capital Budget Revenue and Expense Charts FY 2012 BUDGET Where the money comes from .. Revenues 2012 Other Federal Grants 0% Other State and Local 6% Other Operating Revenue 12% Federal Grants (FTA) 17% Passenger Fares 20% TransNet 12% TDA 33% Where the money goes .. Expenses 2012 Wages and Benefits 14% Professional Services 18% Other 11% Fuel, Taxes, Supplies and Tires 11% Purchased Transportation 46% Operating Budget Summary 29 Budget Assumptions OPERATING REVENUE Operating revenues are comprised of passenger fare revenues, other operating revenue and public funding. NCTD's operating revenues are estimated at $85.9 million in FY 2012, a increase of 6% or about $5 million from the FY 2011 budget. PASSENGER FARE REVENUES Millions PASSENGER FARES $20 18.3 17.2 17.1 $18 16.9 16.8 2.3 2.1 2.2 2.1 2.0 6.2 6.0 6.2 6.4 0.5 0.5 0.5 0.5 0.4 8.5 8.4 8.4 8.1 8.0 FY 2009 Actual FY 2010 Actual FY 2011 Budget $16 $14 7.0 $12 $10 Fare revenues include fare receipts collected from monies deposited in the farebox and ticket vending machines (TVM's) by riders or through the sale of tickets and passes at various transit centers, ticket outlets, and the Webtix online store. Total system fare revenue for FY 2012 is projected to decrease by 2% from the previous year's budget. This is the third straight year for projected declines in passenger fare revenues, a primary result of a reduction of fares. $8 $6 $4 $2 $ BREEZE LIFT COASTER FY 2011 Y/E Estimate SPRINTER FY 2012 Budget BREEZE fixed route bus fare revenue is budgeted at $7.9 million a $478K decrease when compared to the FY 2011 budget. ADA paratransit (LIFT) fare revenue, is projected at $420K for FY 2012, a 14% drop from FY 2011 budget projections. LIFT fare revenue is based on 122,622 riders and an average fare revenue of $3.43 for FY 2012. COASTER commuter rail fare revenue for FY 2012 is projected at $6.4 million, an increase of $374K or 9% from the FY 2011 budget, despite reduced fares. SPRINTER light rail fare revenue is projected at $2.0 million, $172K less than the FY 2011 budget. Farebox recovery ratio is a calculation of fare revenue as a percent of operating cost. A higher farebox ratio is a positive trend, while a lower farebox ratio indicates that expenses increase at a faster rate than the fare revenue. Farebox recovery for BREEZE and SPRINTER, is expected to decrease in FY 2012 due to reduced fares and contracted increases in both operating contracts. LIFT farebox recovery is expected to increase slightly in FY 2012. COASTER farebox recovery is anticipated to decrease slightly compared to the FY 2011 budget. 30 NCTD FY11 Operating and Capital Budget Budget Assumptions cont. cont. RIDERSHIP Total system ridership for FY 2012 is projected at 11.6 million passengers. This projection is almost flat when compared to last year estimates (0.4% higher). Millions PASSENGERS 14 12.6 11.6 11.3 12 2.1 2.1 10 11.6 11.3 2.2 2.1 2.2 1.5 0.1 1.3 1.3 1.3 0.1 0.1 8 1.5 0.1 0.1 7.7 7.8 6 8.8 8.0 7.8 4 2 FY 2009 Actual FY 2010 Actual FY 2011 Budget BREEZE LIFT COASTER FY 2011 Y/E Estimate FY 2012 Budget BREEZE boardings are projected at 7.8 million, a decrease of 2.7% compared to the FY 2011 budget numbers but when compared to FY 2011 year end estimates boardings are projected to increase by 1.7% more in line with the Distrcit's current ridership trend. LIFT paratransit boardings are projected at 123K, an increase of more than 4% compared to the FY 2011 projections. Continued annual increased ridership trends are the basis for the increase. FY 2012 COASTER boardings are estimated at 1.5 million, an increase of more than 209K passengers or 16% compared to the FY 2011 budget. SPRINTER SPRINTER ridership is estimated at 2.2 million, a 2.7% increase compared to the FY 2011 budget year. Projections based on reduced fares. MILES AND HOURS OF SERVICE REVENUE MILES Millions 7.6 8 7.2 0.3 6.8 0.5 0.5 0.5 0.6 0.3 0.3 1.1 0.3 1.1 1.2 5.2 5.2 0.3 1.1 6 7.2 7.1 0.5 1.2 4 5.8 5.3 4.9 2 FY 2009 Actual FY 2010 Actual BREEZE FY 2011 Budget LIFT Operating Budget Summary COASTER FY 2011 Y/E Estimate SPRINTER FY 2012 Budget FY 2012 BREEZE revenue hours and miles are projected to increase. The increase in miles and hours is a direct result of a comprehensive mobility study that was preformed to maximize route effectiveness. BREEZE miles and hours are projected to increase 6.8% and 3.8% respectively. COASTER service in FY 2012, Sunday service was added for a trial period. Miles and hours made a slight increase for this year based on the added service. Revenue hours are projected at 6,615 and revenue miles at 278,436. SPRINTER service is increased for FY 2012, adding extended weekday and evening weekend service. The 31 Budget Assumptions cont. added service increases hours and miles by 11.9% and 14.2% respectively compared to FY 2011 budget levels. CURRENT FARE STRUCTURE Thousands REVENUE HOURS 600 511.3 500 21.8 6.4 56.1 482.4 469.3 455.7 21.9 6.5 22.0 6.5 58.0 61.3 400 471.1 22.7 6.5 24.7 6.6 58.2 60.0 381.9 379.9 NCTD continued its fare reduction program initiated in January 2011 and has continued it into FY 2012 in an effort to increase ridership. The BREEZE fare changes included a $0.25 reduction in the cash fare, a reduction of 13%. 300 427.0 200 396.1 365.8 COASTER fare changes include changing the current 4-zone structure to a 3-zone structure and reducing all COASTER passes and tickets by approximately 15%. 100 FY 2009 Actual FY 2010 Actual BREEZE FY 2011 Budget LIFT COASTER FY 2011 Y/E Estimate FY 2012 Budget Please refer to pages A-1 through A-2 in the Appendix for comprehensive fare tables. SPRINTER OTHER OPERATING REVENUE This revenue category is budgeted at $10.6 million for FY 2012 with a projected increase of 13% compared to the FY 2011 budget. The category is comprised of two subcategories: Auxiliary revenues - Includes transit-system generated revenues such as advertising, shared use of the railroad, dispatching, concession and pay phone revenues. The FY 2012 budget for this category is $8.8 million, a 10.8% increase from FY 2011 budget. The increase in revenue is attributed to higher projected shared used agreement revenues. Millions OTHER OPERATING REVENUE $12 $10 $8 $6 10.6 9.5 9.8 FY 2009 Actual FY 2010 Actual 9.4 9.6 $4 Non-transportation revenues - Includes lease revenue, permit and administrative fee revenues and other miscellaneous revenues. The FY 2012 budget for this revenue is $303K more than the FY 2011 budget. $2 PUBLIC FUNDING $ 32 FY 2011 Budget FY 2011 Y/E Estimate FY 2012 Budget Public funding for NCTD in FY 2012 is projected at $58.5 million, an increase of $5.6 million from the FY 2011 budget. The increase is attributed to a projected receipt of STA funding ($4.9M) from the state. NCTD FY11 Operating and Capital Budget Budget Assumptions cont. Public funding sources include TDA, TransNet, FTA (5307 and 5309 Preventive Maintenance), state (STA) and Other (CalTrans, New Freedom, JARC and 5311, ARRA). TDA SALES TAX These funds are generated by the 1/4 % sales tax collected by the state for transportation purposes. TDA revenues have decreased since FY 2007 due to declining state sales tax revenues. With the continued decline in the state and national economies, sales tax Millions TDA revenue projections for FY 2012 may be overstated and a downward adjustment in TDA revenue projections may occur. Total TDA funding is up $2.8 million in comparison to FY 2011. $32 $28 $24 $20 $16 28.3 26.1 25.5 25.5 23.1 $12 $8 $4 In past years, NCTD chose to use TDA 4.0 exclusively to support operations and used STA funds as the local match for federally funded capital projects. With reduced STA funding, NCTD is now forced to use TDA funding originally programmed for operations to replace STA as the local match for capital projects. $ FY 2009 Actual FY 2010 Actual FY 2011 Budget FY 2011 Y/E Estimate FY 2012 Budget TDA 4.5, like TDA 4.0, is used for both the local match on federally funded capital projects and to support operations. However, unlike TDA 4.0, TDA 4.5 is required to be used exclusively for disabled and senior services and capital projects. The FY 2012 budget reflects a increase in funding for operations of $164K for TDA 4.5 compared to the FY 2011 budget. TRANSNET TransNet is a funding source created by Proposition A, the 1/2 cent sales tax originally enacted in November 1987 to fund a 20-year transportation program which expired at the end of FY 2008. In November 2005, voters in San Diego County approved a 40-year extension of the program which is now due to expire in the Year 2048. Similar to the TDA revenue described above, a downward adjustment in TransNet revenue projections for FY 2012 Operating Budget Summary 33 Budget Assumptions cont. may occur. Revenue for FY 2012 is projected at $10.1 million, a 10% increase from the FY 2011 budget. FTA Millions TRANSNET Federal capital and operating assistance for transit purposes is subject to an annual appropriation by Congress and is administered by the Federal Transit Administration (FTA). The two primary sources of federal aid are the FTA 5309 discretionary program and the Section 5307 formula grant program. $12 $10 $8 $6 10.1 10.5 9.2 9.7 10.1 $4 $2 $ FY 2009 Actual FY 2010 Actual FY 2011 Budget FY 2011 Y/E Estimate FY 2012 Budget Millions FTA STA $20 $16 $12 18.7 17.3 $8 In addition to the typical Capital Improvement Program costs, FTA 5307 funds can be used for Preventive Maintenance. The Preventive Maintenance program allows the use of the capital funds to offset 80% of the costs to maintain both vehicles and facilities. The FY 2012 budget for federal grants are based on revenue estimates provided by SANDAG and published in the Federal Register. The amount budgeted for FY 2012 is $14.8 million, a $3.9 million decrease over the FY 2011 budget. The decrease is not due to a decrease in FTA revenues but a result of a reallocation of funding. NCTD reallocated funding to its CIP budget to support capital projects. 15.9 14.8 The State Transit Assistance budget provides funding for allocation to local transit agencies to fund a portion of the operations and capital costs associated with local mass transportation programs. In the FY 2012 budget, the STA revenue line item shows $4.9 million, but NCTD has included a contingency of $3.2 million in the operating budget, to address any uncertainty related to state funding. 12.0 OTHER FUNDING $4 $ FY 2009 Actual 34 FY 2010 Actual FY 2011 Budget FY 2011 Y/E Estimate FY 2012 Budget NCTD also receives funding from other federal and state programs. These include New Freedom, Job Access Reverse Commute (JARC), 5311(f) for rural bus service, Medi-Cal Administrative Activities (MAA), various CalTrans grants. The other major funding source in this category is the MAA program which helps support the ADA Paratransit service. NCTD FY11 Operating and Capital Budget Budget Assumptions cont. The amount budgeted for other funding is $400K, a decrease of $60K from the FY 2011 budget. This decrease is attributed to redduced MAA grants. STA Millions $8 NCTD also had an anticipated decrease in funding from the American Recovery and Reinvestment Act (ARRA). In FY 2011 the budgeted amount was $250,000. $6 $4 4.9 $2 3.0 $ 3.0 0.0 FY 2009 Actual 0.0 FY 2010 Actual FY 2011 Budget FY 2011 Y/E Estimate FY 2012 Budget Millions OTHER FUNDING $8 $6 $4 6.4 5.3 $2 0.7 0.8 0.5 $ FY 2009 Actual FY 2010 Actual Operating Budget Summary FY 2011 Budget FY 2011 Y/E Estimate FY 2012 Budget 35 Budget Assumptions cont. OPERATING EXPENSES NCTD's total operating expenses are estimated at $85.9 million in FY 2012, a 6.0% increase compared to FY 2011 budget. PERSONNEL Beginning July 1, 2010, NCTD underwent a significant transition. NCTD began what was a two phase process of the transition of BREZZE service operation to First Transit, a provider of passenger transportation contract and management services. Phase one begain on July 1, 2010 transitioning bus operator and a porition of the fleet maintenece over to First Transit. Beginning July 1, 2011 the second and final phase of the transition occured with the movement of the remainder of the facility component of the BREEZE operations . Personnel by Division SALARIES AND WAGES The FY 2012 budget for salaries and wages is 29% lower than FY 2011. The FY 2012 budget is $6.9 million, and represents 8% of the total operating budget. The significant decrease is attributed to the outsourcing of the BREEZE operations and the district reorganization. EMPLOYEE BENEFITS Employee benefits include FICA, CalPERS, vacation, sick and holiday pay, uniform allowances and insurance benefits. Non-represented employees employees receive no increase for health insurance in FY 2012. Employee benefits decrease by 23%, a result of the outsourcing of BREEZE operations and the District reorganization. PROFESSIONAL SERVICES This category includes recurring services and fees, as well as some nonrecurring items, many of which are mission critical to NCTD's continuing provision of transportation services. Some of the more significant expenses include security; contract maintenance for the railroad right of way, facilities and equipment; on-call engineering; dispatching; revenue vehicle overhauls; armored transportation; attorney fees; regional telephone information services; fare equipment maintenance and fare system support, banking and credit card fees for passenger fare transactions; and outside consultants. Most of these recurring services and fees have annual escalation clauses of approximately 3% - 5%. The FY 2012 budget for Professional Services increases by about 2% compared to the FY 2011 budget. MATERIALS AND SUPPLIES The operating budget for FY 2012 is projected to be $461K or 2% more than in FY 2011. The increase in expenditures is tied to fluctuations and uncertainties in fuel prices. The most significant component in this category is fuel. NCTD's revenue vehicle fleet uses diesel, gasoline and CNG. Fuel prices fluctuated widely, from $2.10 to over 36 NCTD FY11 Operating and Capital Budget Budget Assumptions cont. $3.70 per gallon not including taxes during FY 2011, making it difficult to predict future diesel and gasoline costs. So knowing that fuel fluctuation was an issue NCTD hedged on continued rising fuel prices and entered into a fixed fuel price agreement that locks in current rates into Febraury of 2012. NCTD's diesel budget is $3.25/gallon (not including taxes). Even though over half of NCTD's bus fleet has changed to CNG fuel, diesel is still the largest fuel component due to COASTER and SPRINTER rail vehicles. NCTD's annual diesel consumption is approximately 1.6 million gallons. The budgeted CNG costs for FY 2012 is $.91/therm plus compression and transportation costs. The CNG budget now includes electrical expenses for the compression of the fuel. Twenty-four "mini" buses will were placed into service during FY 2011. The mini buses use gasoline, resulting in a projected consumption of over 128K gallons for FY 2012 compared to 208K gallons in FY 2010. As part of the transition to ALC for LIFT service, fuel costs were included in the contract rate that is included in purchased transportation. Other components in the Materials and Supplies category include office supplies and promotional materials. UTILITIES The operating budget for FY 2012 increases by about 3% compared to FY 2011 budget. New energy savings initiatives such as the installation of solar panels to the administrative building were installed in FY 2011 and anticipated to help the District offset energy costs from the data center. These cost savings from this initiative and others will be closely monitored during the fiscal year to determine the impact on next year's utilities operating budget. CASUALTY AND LIABILITY The budget for FY 2012 casualty and liability increased by $433K when compared to the FY 2011 budget. The increase is attributed to the District exploration of raising liability limits from $100M to $200M. (Cost is projected to be partially offset by higher maintenance fee being negotiated with BNSF.) TAXES This category includes sales tax and California taxes on fuel and related items. The sales tax budget for FY 2012 is estimated to be 3.0% or $18K more than in the FY 2011 budget. The slight increase can be attributed to the increase use of unleaded fuel that carries a state excise tax that the District is not exempt from. PURCHASED TRANSPORTATION The FY 2012 budget for purchased transportation is 19% higher than in the FY 2011 budget. The increase is attributed to the First Transit contract for BREEZE service operations. BREEZE - Beginning July 1, 2010, year one of a seven year contract with First Transit went into effect. NCTD's objective in outsourcing BREEZE services was to reduce unprecedented deficits the District was facing over the next several years. Overall, the contract provides an estimated savings of $45 million over 7 years. A $26.2 million expense is anticipated for FY 2012. LIFT - Beginning July 1, 2011, year one of a 6 year contract with ALC went into effct. NCTD's objective in outsourcing LIFT services was to reduce unprecedented deficits the District was facing over the next several years. Overall, the contract provides an estimated savings of $9 million over 6 years. A $2.8 million expense is anticipated for FY 2012. COASTER - NCTD purchases transportation services for the COASTER operations. A five-year, fixed-price contract was awarded to TransitAmerica Services Inc., commencing July 1, 2006. NCTD exercised its option to Operating Budget Summary 37 Budget Assumptions cont. extend its contract with TransitAmerica through June 30, 2016. Total purchased transportation costs for FY 2012 are $6.2 million. SPRINTER - NCTD purchases transportation services for its light rail service from Veolia Transportation. The current revenue service contract expires in FY 2013 and includes annual escalation amounts between 3% and 4%. The purchased transportation costs for SPRINTER for FY 2012 are $4.3 million. ADVERTISING AND MISCELLANEOUS This category includes travel, training, conferences, seminars and other miscellaneous expenses, as well as advertising, and APTA dues. The budget for FY 2012 is 8% lower compared to FY 2011 budget. EXPENSE RECLASS/REIMBURSEMENTS This category includes reimbursement of professional services incurred by NCTD on behalf of others. The budget reflects an increase in reimbursable expenses and their related reimbursement. LEASES AND RENTALS The budget for FY 2012 reflects an increase of $17K compared to the FY 2011 budget. The increase is attributable to increase costs of facility communication sites found in the Maintenance of Way budget. WORKERS' COMPENSATION The FY 2011 budget shows a 9% decrease compared to the FY 2011 budget. The decrease is attributable to reduced staffing and number of occurances. DEBT SERVICE This expense category represents the period debt costs of the $114 million debt issued in July 2004 to finance a portion of the design, acquisition and construction of the SPRINTER project. In previous years, the debt service costs included amortization of the issuance costs, broker dealer fees, agent fees and auction agent fees. Beginning in FY 2008, debt service also includes the interest expense for the debt that was previously capitalized during SPRINTER construction. 38 NCTD FY11 Operating and Capital Budget Operational Statistics FY 2009 Actual PASSENGERS BREEZE FAST LIFT COASTER SPRINTER FY 2010 Actual FY 2011 Budget FY 2011 Y/E Estimate FY 2012 Budget % CHANGE FY12 TO FY11 Y/E Est Actual % CHANGE FY12 TO FY11 Budget 8,747,458 8,205 115,496 1,501,619 2,195,373 7,825,176 0 119,150 1,271,620 2,117,920 8,038,542 0 117,408 1,308,427 2,104,536 7,689,351 0 119,050 1,342,898 2,121,270 7,818,359 0 122,622 1,518,057 2,161,544 1.7% N/A 3.0% 13.0% 1.9% (2.7%) N/A 4.4% 16.0% 2.7% 12,568,151 11,333,866 11,568,913 11,272,569 11,620,582 3.1% 0.4% TOTAL MILES BREEZE FAST LIFT COASTER SPRINTER 6,317,053 24,454 1,352,620 271,126 490,401 5,803,083 0 1,372,856 273,496 490,150 5,335,800 0 1,430,178 275,054 493,832 5,699,217 0 1,388,420 274,229 506,136 5,875,048 0 1,430,073 278,436 562,553 3.1% N/A 3.0% 1.5% 11.1% 10.1% N/A (0.0%) 1.2% 13.9% TOTAL MILES 8,455,654 7,939,585 7,534,864 7,868,002 8,146,110 3.5% 8.1% REVENUE VEHICLE MILES BREEZE FAST LIFT COASTER SPRINTER 5,745,711 21,921 1,138,108 257,404 481,862 5,339,331 0 1,122,471 259,222 481,606 4,890,871 0 1,162,898 261,262 485,400 5,219,237 0 1,129,402 261,170 498,621 5,222,265 0 1,163,284 265,177 554,200 0.1% N/A 3.0% 1.5% 11.1% 6.8% N/A 0.0% 1.5% 14.2% TOTAL REVENUE MILES 7,645,006 7,202,630 6,800,431 7,108,430 7,204,926 1.4% 5.9% 41,471,389 27,876 1,522,615 42,056,346 21,761,276 38,882,142 0 1,599,507 35,916,269 18,400,478 38,585,002 0 1,103,635 37,551,855 21,887,174 38,474,250 0 1,606,542 38,114,691 18,445,564 39,119,752 0 1,646,116 43,183,121 18,794,505 1.7% N/A 2.5% 13.3% 1.9% 1.4% N/A 49.2% 15.0% (14.1%) 106,839,502 94,798,396 99,127,666 96,641,047 102,743,494 6.3% 3.6% TOTAL PASSENGERS PASSENGER MILES BREEZE FAST LIFT COASTER SPRINTER TOTAL PASSENGER MILES FARE REVENUE PER PASSENGER BREEZE $ FAST $ LIFT $ COASTER $ SPRINTER $ 0.97 0.97 4.20 4.65 1.03 $ $ $ $ $ 1.07 0 4.24 4.84 0.98 $ $ $ $ $ 1.05 0 4.27 4.60 1.05 $ $ $ $ $ 1.06 0 4.03 4.62 0.98 $ $ $ $ $ 1.02 0 3.43 4.21 0.94 (3.8%) N/A (14.9%) (8.9%) (4.1%) (2.9%) N/A (19.7%) (8.5%) (10.5%) AVERAGE 1.45 $ 1.51 $ 1.48 $ 1.50 $ 1.45 (3.3%) (2.0%) $ FAREBOX RECOVERY RATIO BREEZE FAST LIFT COASTER SPRINTER 20.7% 7.7% 12.9% 42.4% 15.1% 19.8% 0.0% 12.8% 40.0% 16.3% 21.5% 0.0% 12.2% 35.9% 15.8% 19.5% 0.0% 12.7% 39.7% 16.1% 19.0% 0.0% 12.8% 35.3% 14.3% (3.0%) N/A 1.1% (11.2%) (11.5%) (11.9%) N/A 4.6% (1.8%) (9.9%) AVERAGE 23.8% 23.0% 23.2% 22.9% 21.6% (5.3%) (6.7%) Operating Budget Summary 39 Operational Statistics cont. FY 2009 Actual FY 2010 Actual FY 2011 Budget FY 2011 Y/E Estimate FY 2012 Budget % CHANGE FY12 TO FY11 Y/E Est Actual % CHANGE FY12 TO FY11 Budget COST PER PASSENGER BREEZE FAST LIFT COASTER SPRINTER $ $ $ $ $ 4.71 12.48 32.47 10.97 6.86 $ $ $ $ $ 5.39 0 33.02 12.12 6.02 $ $ $ $ $ 4.88 0 34.89 12.80 6.63 $ $ $ $ $ 5.40 0 31.82 11.62 6.07 $ $ $ $ $ 5.37 0 26.79 11.94 6.61 (0.6%) N/A (15.8%) 2.8% 8.9% 10.0% N/A (23.2%) (6.7%) (0.3%) AVERAGE $ 6.10 $ 6.56 $ 6.40 $ 6.54 $ 6.68 2.1% 4.4% COST PER PASSENGER MILE BREEZE FAST LIFT COASTER SPRINTER $ $ $ $ $ 0.99 3.67 2.46 0.39 0.69 $ $ $ $ $ 1.09 0 2.46 0.43 0.69 $ $ $ $ $ 1.02 0 3.71 0.45 0.64 $ $ $ $ $ 1.08 0 2.36 0.41 0.70 $ $ $ $ $ 1.07 0 2.00 0.42 0.76 (0.9%) N/A (15.4%) 2.5% 9.0% 4.9% N/A (46.2%) (5.9%) 19.2% AVERAGE $ 0.72 $ 0.78 $ 0.75 $ 0.76 $ 0.76 0.0% 1.3% PASSENGERS PER SERVICE MILE BREEZE FAST LIFT COASTER SPRINTER 1.52 0.37 0.10 5.83 4.56 1.47 0.00 0.11 4.91 4.40 1.64 0.00 0.10 5.01 4.34 1.47 0.00 0.11 5.14 4.25 1.50 0.00 0.11 5.72 3.90 2.0% N/A 0.0% 11.3% (8.3%) (8.5%) N/A 4.4% 14.3% (10.0%) AVERAGE 1.64 1.57 1.70 1.59 1.61 1.3% (5.3%) PASSENGERS PER REVENUE HOUR BREEZE 20.58 FAST 4.08 LIFT 2.06 COASTER 235.88 SPRINTER 100.71 19.76 0.00 2.05 197.06 96.87 21.97 0.00 1.92 201.36 95.53 20.13 0.00 2.05 206.38 93.60 20.58 0.00 2.05 229.49 87.65 2.2% N/A (0.0%) 11.2% (6.3%) (6.3%) N/A 6.8% 14.0% (8.2%) 24.58 23.50 25.39 24.02 24.67 2.7% (2.8%) REVENUE HOURS BREEZE FAST LIFT COASTER SPRINTER 425,029 2,012 56,139 6,366 21,799 396,072 0 57,996 6,453 21,863 365,836 0 61,304 6,498 22,030 381,894 0 58,208 6,507 22,664 379,900 0 59,955 6,615 24,660 (0.5%) N/A 3.0% 1.7% 8.8% 3.8% N/A (2.2%) 1.8% 11.9% TOTAL REV. HOURS 511,345 482,384 455,668 469,273 471,130 0.4% 3.4% 110.50 0 54.80 2,739.70 579.50 1.7% N/A (15.8%) 14.2% 2.0% 3.1% N/A (18.0%) 6.3% (8.6%) AVERAGE COST PER REVENUE HOUR BREEZE FAST LIFT COASTER SPRINTER $ $ $ $ $ 97.02 50.88 66.81 2,586.61 690.44 $ $ $ $ $ 106.51 0 67.84 2,389.27 583.36 $ $ $ $ $ 107.15 0 66.82 2,577.44 633.79 $ $ $ $ $ 108.67 0 65.08 2,398.22 567.94 $ $ $ $ $ *Debt interest and contingency not included in calculations 40 NCTD FY11 Operating and Capital Budget Debt Overview In 2003, the Full Funding Grant Agreement for the SPRINTER project included a local share requirement of state and local funds. Of the local share, $80 million was to be provided by the state's Traffic Congestion Relief Program (TCRP). However, allocations to the TCRP were suspended, and NCTD did not receive the TCRP funding as had been scheduled. In July 2004, the NCTD Board authorized the issuance of debt to fund the shortfall created by the suspension of the state TCRP funds. NCTD completed a financing transaction in which debt in the principal amount of $114 million was issued through the California Transit Finance Corporation (CTFC) to finance a portion of the design, acquisition and construction of the SPRINTER project. This financing provided an additional $34 million of funds to be used to cover additional project costs of approximately $24 million, to fund the debt service reserve fund of approximately $8 million and to cover costs of issuance of approximately $2 million. NCTD received the proceeds of $114 million of Certificates of Participation, 2004 Series A Auction Rate Certificates issued as Auction Rate Securities by CTFC. In conjunction with this financing, NCTD entered into a lease agreement with CTFC whereby NCTD agreed to make lease payments to CTFC to retire the Certificates. The Certificates represent the proportionate interest of the registered owners in the lease payments NCTD is obligated to make from all funds legally available to NCTD. NCTD has granted a security interest in such funds to CTFC. The Certificates mature in 2034. In August 2005, the California Transportation Commission approved an allocation of $80 million from the TCRP for the SPRINTER project. NCTD used these funds as they became available to retire $80 million of the related debt, leaving a remaining balance of $34 million of outstanding debt. The debt was originally issued as auction rate securities with a variable interest rate determined weekly by the auction agent. In February 2006, the NCTD Board authorized an interest rate swap agreement for the $34 million balance. Essentially, per the synthetic fixed-rate swap agreement, NCTD pays the counter party UBS a fixed interest rate, in exchange for the UBS paying the variable interest rate for the $34 million of outstanding debt. Synthetic fixed-rate swap agreements have been used by many public agencies as a tool for debt management. For example, in 2005 both MTS and SANDAG executed similar agreements to mitigate interest rate risk. Overall, NCTD's debt strategies were similar to many other governmental and non-profit entities, and operated satisfactorily until national disruptions in the auction-rate securities market in late 2007. During late 2007, subprime mortgage losses caused significant financial stress on bond insurers, who guaranteed the payment of municipal bonds in the event of default. NCTD had insurance from the bond insurer MBIA for the $34 million of outstanding debt. Stresses on the bond insurers, along with other aspects of the national "credit crunch," created dislocations in the municipal bond market generally, and particularly in the market for auction rate securities. The market for auction rate securities was large, estimated to be between $325 and $350 billion. However, during February 2008, widespread failures were reported in the auction rate market. NCTD's debt was affected by the disruptions in the overall market, and the District was notified in February 2008 that there were failures in the auctions for NCTD's debt. (It is important to note that the disruptions in the auction rate securities market generally had nothing to do with the creditworthiness of individual issuers. In fact, the rating on NCTD's outstanding debt was upgraded by Moodys on February 22, 2008.) In May 2008, the Boards of Directors for NCTD and for SANDAG (the San Diego Association of Governments) approved a restructure of NCTD's outstanding debt, involving SANDAG's commercial paper program. Operating Budget Summary 41 Debt Overview cont. SANDAG issued $34 million of commercial paper, which was then used by SANDAG to purchase the NCTD auction rate securities, effectively making SANDAG the holder of NCTD's outstanding debt. The interest rate that NCTD pays SANDAG (as the holder of the $34 million of debt) is equal to the actual interest rate that SANDAG pays on the commercial paper. This results in no net cost to SANDAG, but allowed NCTD to effectively reduce its current interest rate down to the commercial paper rate. NCTD also pays its share of administrative costs associated with the commercial paper program (including letter of credit fees, trustee fees, rating agency fees, etc.) as well as legal and financial advisor fees related to the transaction. However, these transaction costs were substantially lower than the costs that would have been associated with other alternatives, such as a new issuance of fixed-rate debt or variable-rate demand notes. This arrangement allowed NCTD to reduce its borrowing costs, retain the current interest rate swap structure, and preserve the existing bond insurance. As market conditions change in the future, NCTD can consider such alternatives as refinancing at a fixed rate. If this were to occur, NCTD would pay down the $34 million of outstanding commercial paper, and the agreement with SANDAG would be terminated. Estimated future debt payments for the $34 million of long-term debt are as follows: Estimated Interest Year Ending and Support June 30, 2012 Total Costs (1) Payments Principal $ 1,100,000 $ 1,237,600 $ 2,337,600 2013 1,125,000 1,197,560 2,322,560 2014 1,200,000 1,156,610 2,356,610 2015 1,225,000 1,112,930 2,337,930 2016 1,275,000 1,068,340 2,343,340 2017 - 2021 6,325,000 4,649,190 10,974,190 2022 - 2026 6,850,000 3,472,560 10,322,560 2027 - 2031 7,900,000 2,149,420 10,049,420 2032 - 2036 7,000,000 642,460 7,642,460 Total $ 34,000,000 $ 16,686,670 $ 50,686,670 (1) Based on a 3.64% fixed rate that includes interest and support costs NCTD DEBT LIMITATIONS NCTD has no legal debt limit. NCTD has agreed not to incur other obligations payable from or secured by the pledge of revenues for the lease payments that are superior to or on parity with its obligations under the lease agreement with CTFC. NCTD may issue subordinated debt. NCTD currently has no specific plans to issue additional debt during the next five years. CERTIFICATE RATINGS AND INSURANCE In February 2008, Moody's Investors Service upgraded to A2 from A3 the rating assigned to NCTD's certificates. Payment of the principal and interest evidenced by the Certificates when due is insured by a financial guaranty insurance policy issued by MBIA Insurance Corporation. 42 NCTD FY11 Operating and Capital Budget Personnel Summary Accounting FY 2010 Budget Positions FY 2011 Budget Positions 7.00 6.00 FY 2012 Add / Cuts 6.00 Chief of Rail Operations Communications and Outreach 5 Commuter Rail Services Contract Operations and Maintenance 1 2.00 3.00 - - 1.00 3.00 4.00 2.00 5.00 4.00 1.00 1.50 7 FY 2012 Budget Positions - 6.00 Chief of Bus Operations, Planning and Safety 1 6.00 4.00 Chief Financial and Administrative Officer 6 6.00 278.00 2.00 2 FY 2012 Transfers 6.00 288.00 Budgeting and Fare Collection Bus Operations FY 2009 Budget Poisitions 7.00 SUMMARY BY DEPARTMENT (2.00) 1.40 1.00 - - 3.50 4.00 - (1.00) 2.00 1.00 6.00 3.00 8.00 1.00 1.50 5.00 Contracts and Procurement 5.00 5.00 5.00 1.00 6.00 Customer Service 11.00 9.75 6.75 0.25 7.00 Facility Maintenance 53.00 53.00 32.00 (32.00) - Fleet Maintenance 83.00 84.00 54.00 (54.00) - General Management 3.00 3.00 3.00 1.00 4.00 Human Resources 9.00 9.00 5.50 (1.50) 4.00 Information Technology 10.00 10.00 7.00 3.00 10.00 - - 1.00 1.00 Light Rail Services 1.50 1.60 1.00 1.00 Maintenance of Way 5.00 5.00 2.00 1.00 Management Accounting 3.00 3.00 3.00 1.00 (1.00) 3.00 - 1.00 - - - 1.00 1.00 1.00 3.00 8.50 8.25 2.00 3.00 3.00 3.00 3.00 4.00 3.00 Inter-Governmental Affairs 1 Policy and Strategic Development2 Real Estate 1 Risk and Insurance Management 9 Service Planning 11 4 Service Quality and Accessibility 8 System Safety and Compliance Transit Enforcement 10 TOTAL 3.00 2.00 1.00 4.00 (3.00) 2.00 2.00 2.00 19.00 19.00 17.00 (0.50) 533.50 523.00 176.75 (77.25) 2.00 16.50 0.00 99.50 1 Department was added in FY 2011 Department was eliminated in FY 2011 3 Depatment was eliminated in FY 2009 4 Department was Accessible Services in FY 2010 5 Department was Communications and Marketing in FY 2010 6 Department was Director of Administration and Finance in FY 2010 7 Department was Director of Operations in FY 2010 8 Department was Rail System Safety and Compliance in FY 2010 9 Department was Safety, Risk and Training in FY 2010 10 Department was Security in FY 2010 11 Department was Service Implementation in FY 2010 2 Operating Budget Summary 43 This page left intentionally blank 44 NCTD FY11 Operating and Capital Budget General Management North County District Board of Directors General Management Real Estate Inter-Governmental Affairs GRADE 2010 FTE 2011 FTE 2012 FTE Executive Director GM1 1.00 1.00 1.00 Executive Assistant and Clerk of the Board C42 0.00 1.00 1.00 Executive Administrator C42 1.00 0.00 0.00 Clerk of the Board B23 1.00 0.00 0.00 Asst Executive Assistant and Clerk of the Board B21 0.00 1.00 1.00 Receptionist/Mail Clerk A12 0.00 0.00 1.00 3.00 3.00 4.00 POSITION GENERAL MANAGEMENT GENERAL MANAGEMENT TOTAL INTER-GOVERNMENTAL AFFAIRS Director of Policy and Strategic Development E83 1.00 0.00 0.00 Inter-Governmental Affairs Officer D63 0.00 1.00 1.00 1.00 1.00 1.00 INTER-GOVERNMENTAL AFFAIRS TOTAL REAL ESTATE Manager of Real Estate Assets D64 0.00 0.00 1.00 Chief Management Accountant D62 1.00 1.00 1.00 Real Estate Assets Administrator C41 0.00 1.00 1.00 REAL ESTATE TOTAL 1.00 2.00 3.00 GENERAL MANAGEMENT TOTAL FTE'S 5.00 6.00 8.00 General Management Division Budgets 45 General Management cont. DESCRIPTION The General Management Division includes General Management, the Board of Directors, and Inter-Governmental Affairs. GENERAL MANAGEMENT The Executive Director provides leadership and direction to ensure NCTD meets its mission, vision, and goals. The department develops and implements processes to facilitate community interaction and builds relationships with other governmental entities. The Executive Director executes strategic plans to maximize the effective use of taxpayer funds through continuous improvements in the agency's efficiency. The Executive Director also ensures sound ethics and fiscal management for the agency consistent with federal, state and local laws and implements policy directives as articulated by the Board of Directors. BOARD OF DIRECTORS NCTD is governed by a nine member Board of Directors (Board) consisting of one city council member from each incorporated city in the NCTD service area plus the Fifth District County Supervisor who represents the unincorporated areas of North San Diego County. The Board holds one regular meeting each month and may also meet at other times as needed. The Board has three standing committees: Executive; Performance, Administration and Finance; and Marketing, Service Planning and Business Development. These Committees review information and make recommendations to the full Board of Directors. INTER-GOVERNMENTAL AFFAIRS The Inter-Governmental Affairs Officer manages the legislative program at the District. The department has overall responsibility for the development, implementation and maintenance of government relation activities with state/ federal executive and legislative bodies as well as other regulatory agencies. 46 NCTD FY11 Operating and Capital Budget General Management cont. Operating Expenses by Department FY 2011 Budget DEPARTMENT General Management $ Board of Directors 773,107 FY 2011 Y/E Estimate $ 783,393 % CHANGE FY12 TO FY11 Est Actual FY 2012 Budget $ 860,952 9.9% % CHANGE FY12 TO FY11 Budget 11% 39,350 24,070 29,350 21.9% (25%) Inter-Governmental Affairs 346,539 227,320 276,479 21.6% (20%) Real Estate 333,823 161,528 484,834 200.2% 45% 1,651,615 38.1% 11% TOTAL GENERAL MANAGEMENT $ 1,492,818 $ 1,196,311 $ Operating Expenses by Cost Classification FY 2011 Budget EXPENSES Salaries and Wages $ 525,255 $ % CHANGE FY12 TO FY11 Budget 773,081 47.2% 52% 229,580 273,184 339,152 24.1% 48% Professional Services 828,300 464,470 774,482 66.7% (6%) Materials and Supplies 3,350 7,708 11,700 51.8% 249% Utilities 5,500 8,436 10,000 18.5% 82% 155,449 Workers' Comp 85,458 167,600 96.1% 8% (239,800) Expense Reclass/Reimbursement TOTAL GENERAL MANAGEMENT $ % CHANGE FY12 TO FY11 Est Actual FY 2012 Budget Employee Benefits Travel, Meetings and Misc. 509,439 FY 2011 Y/E Estimate (168,200) (424,400) 152.3% 77% 0 N/A (100%) 1,651,615 38.1% 11% 1,000 $ 1,492,818 $ 1,196,311 $ BUDGET HIGHLIGHTS By Department General Management: New positions are added Receptionist/Mail Clerk, All office supplies are now centralized through General Management. Real Estate: One position added: Manager of Real Estate Assets, Increased reimbursable/allocable costs in Real Estate Services. By Cost Classification Salaries and wages and Employee Benefits: expense are increased for FY 2012 for the reason stated above. Materials and Supplies: Increased materials and supplies expense due to centralizing of ordering Utilities: Increased expense due to increased mobile communication device and services Expense Reclass/Reimbursement: Increased reimburseable or reclassable expenses. General Management Division Budgets 47 This page left intentionally blank 48 NCTD FY11 Operating and Capital Budget Communications, Outreach and Customer Service Communications, Outreach and Customer Service Communications and Outreach Customer Service GRADE 2010 FTE 2011 FTE 2012 FTE Director of Communications D62 1.00 1.00 1.00 Community Outreach Specialist C42 1.00 1.00 1.00 POSITION COMMUNICATIONS AND OUTREACH Outreach Representative C41 0.00 0.00 0.00 Marketing Representative C41 1.00 1.00 2.00 Senior Graphic Communications Designer C41 1.00 1.00 1.00 Mobility/Travel Trainer Supervisor B23 0.00 1.00 1.00 Mobility/Travel Trainer B22 2.00 0.00 0.00 Accessibility Specialist B22 1.00 0.00 1.00 Transit Buddy Coordinator B21 0.00 1.00 1.00 Graphic Communications Artist B23 1.00 0.00 0.00 8.00 6.00 8.00 COMMUNICATIONS AND OUTREACH TOTAL CUSTOMER SERVICE Customer Service Supervisor B23 0.00 1.00 1.00 Administrative Assistant B21 1.00 0.00 0.00 Customer Service Assistant (Full Time) A12 5.00 2.00 6.00 Customer Service Assistant (Part Time) A12 3.75 3.75 0.00 CUSTOMER SERVICE TOTAL 9.75 6.75 7.00 COMMUNICATION, OUTREACH AND CUSTOMER SERVICE TOTAL FTE'S 17.75 12.75 15.00 Communications,OutreachandCustomerServiceDivisionBudgets 49 Communications, Outreach and Customer Service cont. DESCRIPTION The Communications, Outreach and Customer Service Division is responsible for developing, planning, organizing, administering, and coordinating public relations. The Division is also responsible for advertising, marketing, public information and customer service activities. The departments of the division include: COMMUNICATIONS AND OUTREACH The Communications and Outreach Department provides the bridge between the full range of NCTD's transit services and the community. The department is focused on building support and enthusiasm for NCTD and promoting its services through educational programs, community involvement and clear, concise and compelling communication to all of passengers, employees and residents in the service area. The group supports NCTD's 40,000+ daily passengers by providing them with Rider's Guides, schedules, Rider Alerts, and other pertinent materials needed for use on the COASTER commuter trains, SPRINTER light rail trains, ADA/LIFT paratransit, and BREEZE buses. The department includes a Manager, a Marketing Representative, a Community and Governmental Affairs Sprecialist, and a Senior Graphic Communications Designer. CUSTOMER SERVICE The Customer Service department provides transit route information (schedules, transfers, delays, special events, etc) and sells various fare media to the public at three locations. Customer service representatives ensure customer issues are addressed in a timely manner and route customer comments to the appropriate department for response and resolution. 50 NCTD FY11 Operating and Capital Budget Communications, Outreach and Customer Service cont. Operating Expenses by Department FY 2011 Budget DEPARTMENT Communications and Outreach FY 2012 Budget % CHANGE FY12 TO FY11 Est Actual % CHANGE FY12 TO FY11 Budget 1,307,036 1,260,582 1,465,812 16.3% 12% 665,317 659,508 680,168 3.1% 2% $ 1,972,353 $ 1,920,090 $ 2,145,980 11.8% 9% FY 2011 Y/E Estimate FY 2012 Budget % CHANGE FY12 TO FY11 Est Actual % CHANGE FY12 TO FY11 Budget Customer Service TOTAL COMMUNICATIONS, OUTREACH AND CUSTOMER SERVICE FY 2011 Y/E Estimate Operating Expenses by Cost Classification FY 2011 Budget EXPENSES Salaries and Wages Employee Benefits $ 577,886 268,317 $ 486,010 250,322 $ 734,368 51.1% 27% 339,357 35.6% 26% Professional Services 456,500 551,001 467,555 (15.1%) 2% Materials and Supplies 344,700 328,312 310,617 (5.4%) (10%) 870% Utilities Travel, Meetings and Misc. Workers' Comp TOTAL COMMUNICATIONS, OUTREACH AND CUSTOMER SERVICE 1,000 2,623 9,700 269.8% 318,950 305,915 283,383 (7.4%) (11%) 1,000 (124.4%) (80%) $ 2,145,980 11.8% 9% 5,000 $ 1,972,353 (4,093) $ 1,920,090 BUDGET HIGHLIGHTS By Department Communications and Outreach: For FY 2012, 2 positions and associated operational costs were transferred from another division and 1 new position was added. Customer Service: All part-time positions were converted to full-time positions to better serve NCTD customer base. By Cost Classification Salaries and Wages and Employee Benefits: Increased due to the reasons stated above Utilities: Increased due to increased of communication device expense. Workers Comp: Reduced expense due to reduced staffing and projected incidents. Communications,OutreachandCustomerServiceDivisionBudgets 51 This page left intentionally blank 52 NCTD FY11 Operating and Capital Budget Finance and Administration Chief Financial and Administrative Officer Accounting Budgeting and Fare Collection Risk and Insurance Management Information Technology Contracts and Procurement Management Accounting Human Resources POSITION GRADE 2010 FTE 2011 FTE 2012 FTE CHIEF FINANCIAL AND ADMINISTRATIVE OFFICER Director of Administration and Finance E83 1.00 1.00 1.00 Manager of Business Development D63 0.00 1.00 0.00 Administrative Assistant B21 1.00 1.00 1.00 2.00 3.00 2.00 DIRECTOR OF ADMINISTRATION AND FINANCE TOTAL ACCOUNTING Controller D62 1.00 1.00 1.00 Manager of Accounting D62 0.00 0.00 0.00 Assistant Controller C51 1.00 1.00 1.00 Senior Accountant C42 0.00 0.00 0.00 Accountant C41 2.00 1.00 1.00 Accounting Technician B22 3.00 3.00 3.00 7.00 6.00 6.00 ACCOUNTING TOTAL Finance and Administration Division Budgets 53 Finance and Administration cont. GRADE 2010 FTE 2011 FTE 2012 FTE Manager of Budgeting and Fare Collection D62 1.00 1.00 0.00 Fare Revenue Supervisor C51 0.00 0.00 1.00 Budget Analyst C42 1.00 1.00 1.00 Fare Revenue Administrator C41 1.00 1.00 1.00 POSITION BUDGETING AND FARE COLLECTION Data Analyst I B32 1.00 1.00 1.00 Fare Collection Technician B22 2.00 1.00 0.00 6.00 5.00 4.00 BUDGETING AND FARE COLLECTION TOTAL RISK AND INSURANCE MANAGEMENT Manager of Risk and Insurance Management D62 1.00 1.00 1.00 Safety Administrator C41 1.00 0.00 0.00 Accident Investigator C41 1.00 0.00 0.00 Superintendent of Technical Instruction C41 1.00 0.00 0.00 Workers' Compensation Administrator B31 1.00 1.00 1.00 Certified Transit Instructor B23 2.00 0.00 0.00 0.25 0.00 0.00 B21 1.00 0.00 0.00 8.25 2.00 2.00 Relief Trainers/In-Service Instructors Administrative Assistant RISK AND INSURANCE MANAGEMENT TOTAL INFORMATION TECHNOLOGY Chief Information Officer D63 1.00 1.00 1.00 Manager of IT Support D62 1.00 0.00 0.00 Senior Systems Engineer C51 1.00 1.00 1.00 Senior Programmer C51 0.00 1.00 1.00 Business Applications Administrator C43 1.00 1.00 1.00 Business Systems Analyst C43 1.00 0.00 0.00 Project Manager C43 0.00 0.00 1.00 Data Analyst II C42 0.00 1.00 1.00 Programmer Analyst C41 1.00 0.00 0.00 Sr. Network Engineer B32 0.00 0.00 1.00 Network Engineer B31 1.00 1.00 1.00 Network Administrator B31 1.00 0.00 0.00 Network Technician B23 1.00 1.00 1.00 Help Desk Administrator B23 0.00 0.00 0.00 Help Desk Technician B22 1.00 1.00 1.00 10.00 8.00 10.00 INFORMATION TECHNOLOGY TOTAL 54 NCTD FY11 Operating and Capital Budget Finance and Administration cont. GRADE 2010 FTE 2011 FTE 2012 FTE Manager of Contracts and Procurement D63 1.00 1.00 1.00 Senior Contracts Administrator C43 1.00 1.00 1.00 Contracts Administrator C41 2.00 1.00 2.00 Buyer II B31 1.00 1.00 1.00 POSITION CONTRACTS AND PROCUREMENT Buyer I B23 0.00 0.00 0.00 Document Control Coordinator B22 0.00 1.00 1.00 5.00 5.00 6.00 CONTRACTS AND PROCUREMENT TOTAL MANAGEMENT ACCOUNTING Grants Supervisor C51 0.00 0.00 1.00 Grant Specialist C42 1.00 1.00 1.00 Project Accountant C42 1.00 1.00 1.00 2.00 2.00 3.00 MANAGEMENT ACCOUNTING TOTAL HUMAN RESOURCES Manager of Human Resources D62 1.00 1.00 1.00 Human Resources Generalist II C42 1.00 0.58 0.50 Benefits Administrator C41 1.00 1.00 0.00 Payroll Administrator C41 1.00 1.00 1.00 Human Resources Specialist B32 1.00 0.17 0.50 Accounting Technician B22 2.00 0.75 0.00 Benefits Assistant B21 1.00 1.00 1.00 Administrative Assistant B21 0.00 0.00 0.00 HUMAN RESOURCES TOTAL 8.00 5.50 4.00 FINANCE AND ADMINISTRATION TOTAL FTE'S 49.25 36.50 37.00 Finance and Administration Division Budgets 55 Finance and Administration cont. DESCRIPTION The Finance and Administration Division includes the Chief Financial and Administrative Officer, Accounting, Budgeting and Fare Collection, Risk and Insurance Management, Information Technology, Contracts and Procurement, Management Accounting, Human Resources, and Real Estate. The division maintains financial information in accordance with generally accepted accounting principles, and ensures compliance with legal and prudent fiscal requirements. CHIEF FINANCIAL AND ADMINISTRATIVE OFFICER The Chief Financial and Administrative Officer is a member of the executive team. The Chief's department is responsible for monitoring NCTD's financial performance, making recommendations regarding the effective allocation of financial resources, and developing new business opportunities. The department includes the Chief Financial and Administrative Officer, the Manager of Business Development, and an Administrative Assistant. ACCOUNTING The Accounting department provides financial and accounting support to NCTD in accordance with generally accepted accounting and internal control principles. The department is responsible for accounts payable, accounts receivable, fixed asset accounting, and general ledger accounting. The department staff includes a Controller, an Assistant Controller, a Staff Accountant, and three Accounting Technicians. BUDGETING AND FARE COLLECTION The Budgeting and Fare Collection department is responsible for the preparation of NCTD's budget, financial and operational analyses, coordination of external audits, and compliance with various government and transit-related reporting requirements. The department is also responsible for fare collection, fare revenue and ridership reporting and assists with the implementation of new fare technologies. The staff includes a Manager, a Budget Analyst, a Data Analyst II, a Fare Revenue Administrator, a Data Analyst I, and a Fare Collection Technician. RISK AND INSURANCE MANAGEMENT The Risk and Insurance Management department provides professional risk management expertise to protect the public, employees, and NCTD. The department administers the safety, liability, workers' compensation, accident investigation, and cost recovery programs. The department includes a Manager and a Workers' Compensation Administrator. INFORMATION TECHNOLOGY The Information Technology (IT) department provides strategic planning and implementation of all technology projects, ensures the integrity, availability and security of all NCTD mission critical systems, and provides technical support to end users. The department is also involved in implementing regional IT-related capital projects including Intelligent Transportation System (ITS)-related projects. The department includes the Chief Information Officer, a Senior System Engineer, a Senior Programmer, a Business Application Administrator, a Network Engineer, a Network Technician, and a Help Desk Technician. CONTRACTS AND PROCUREMENT The Contracts and Procurement department procures materials, equipment, and services. It is responsible for contract administration and procurement for NCTD's departments using sealed bids, requests for quotations, proposals, and invitations to bid, which result in the issuance of purchase orders or contracts. The department 56 NCTD FY11 Operating and Capital Budget Finance and Administration cont. is responsible for ensuring its policies and procedures comply with applicable state and federal procurement and contracting requirements. The department includes a Manager, a Senior Contracts Administrator, a Contracts Administrator, a Buyer II, and a Document Control Coordinator. MANAGEMENT ACCOUNTING The Management Accounting department is responsible for grant administration and project accounting. The purpose of this function is to administer the grants process, submit project billings, and prepare required project reports. The department includes the Chief Management Accountant, a Project Accountant, and a Grants Specialist. HUMAN RESOURCES Human Resources administers compensation and performance rating programs and manages NCTD's benefits programs to meet employee needs and satisfy labor agreement requirements. The department includes the payroll function which collects timecard information and disburses salaries and wages. The department facilitates staffing strategies required to meet NCTD department needs and coordinates staff development and training programs to enhance employees' knowledge, skills and abilities. Human Resources is also responsible for developing and administering policies and procedures to comply with federal, state and local regulations. The department includes a Manager, a Human Resources Generalist II, a Benefits Administrator, a Payroll Administrator, a Human Resources Specialist, an Accounting Technician, and a Benefits Assistant. REAL ESTATE The department is responsible for the administration and development of District's real estate assets, including activities associated with real estate development, real estate leasing, and real estate acquisitions and dispositions. The department includes the Real Estate Assets Administrator. Finance and Administration Division Budgets 57 Finance and Administration cont. Operating Expenses by Department FY 2011 Budget DEPARTMENT Chief Financial and Administrative Officer 398,137 (9.8%) (26%) 598,726 6.1% (3%) Budgeting and Fare Collection 1,888,124 1,641,784 1,635,235 (0.4%) (13%) Risk and Insurance Management 3,799,257 3,679,678 4,208,963 14.4% 11% Information Technology 1,762,367 1,849,344 2,195,874 18.7% 25% 591,311 555,245 616,745 11.1% 4% 66,851 147,488 104,902 (28.9%) 57% 1,991,758 2,121,451 2,101,998 (0.9%) 6% $ 11,250,843 $ 11,001,118 $ 11,860,580 7.8% 5% % CHANGE FY12 TO FY11 Est Actual % CHANGE FY12 TO FY11 Budget Management Accounting Human Resources TOTAL FINANCE AND ADMINISTRATION $ 441,565 $ % CHANGE FY12 TO FY11 Budget 564,563 Contracts and Procurement 534,719 % CHANGE FY12 TO FY11 Est Actual FY 2012 Budget 616,456 Accounting $ FY 2011 Y/E Estimate Operating Expenses by Cost Classification EXPENSES Salaries and Wages FY 2011 Budget FY 2011 Y/E Estimate FY 2012 Budget $ 2,378,778 $ 2,368,765 $ 2,531,118 6.9% 6% Employee Benefits 2,352,234 2,672,055 2,585,285 (3.2%) 10% Professional Services 3,080,378 2,627,720 2,980,895 13.4% (3%) Materials and Supplies 174,106 112,753 116,845 3.6% (33%) Utilities 237,810 234,622 229,200 (2.3%) (4%) 2,965,421 2,945,371 3,398,676 15.4% 15% Casualty and Liability Travel, Meetings and Misc. Expense Reclass/Reimbursement Leases and Rentals Workers' Comp TOTAL FINANCE AND ADMINISTRATION 65,516 60,795 74,861 23.1% 14% (67,400) (82,800) (121,300) 46.5% 80% 60,000 57,876 65,000 12.3% 8% 4,000 3,961 0 (100.0%) (100%) $ 11,250,843 $ 11,001,118 $ 11,860,580 7.8% 5% BUDGET HIGHLIGHTS By Department The division budget has increased by 5% from the FY 2011 budget. Chief Financial and Administrative Officer: Reduction of one position Budgeting and Fare Collection: Reduction of two positions and the addition of one, for a net reduction of one. Risk and Insurance Management: Increase in liability premium due to proposed increase in liability limits ($100M to $200M) Information Technology: Addition of two positions compared to FY 2011 and increased licensing expense. Management Accounting: Increase salary and wages and benefits expense due to decreased capital expense offset. 58 NCTD FY11 Operating and Capital Budget Finance and Administration cont. By Classification Salaries and Wages and Employee Benefits: Increase due to items stated above Materials and Supplies: Decrease due to centralizing ordering and budget into General Management. Expense Reclasee/Reimbursement: Increase due to additional reimbursemable or reclassable items. Workers Comp: Decreases due to staffing reduction and projected reduced incidents. Finance and Administration Division Budgets 59 This page left intentionally blank 60 NCTD FY11 Operating and Capital Budget Rail Operations Chief of Rail Operations Commuter Rail Services Light Rail Services Maintenance of Way GRADE 2010 FTE 2011 FTE 2012 FTE Chief of Rail Operations E83 1.00 1.00 1.00 Program Director PTC/CTC E83 0.00 0.00 1.00 Chief Engineer - Rail D64 0.00 1.00 1.00 Sr. Project Engineer D63 0.00 0.00 1.00 Rail Program Manager D62 0.00 1.00 0.00 Construction Officer Manager C41 0.00 0.00 1.00 Rail Operations Technician B21 1.00 1.00 1.00 Administrative Assistant B21 1.00 0.00 0.00 Project Cost Analyst B22 0.00 0.00 0.00 Document Control Coordinator B22 1.00 0.00 0.00 4.00 4.00 6.00 POSITION CHIEF OF RAIL OPERATIONS CHIEF OF RAIL OPERATIONS COMMUTER RAIL SERVICES Manager of Rail Services D63 1.00 0.50 0.50 Rail Mechanical Safety Officer D62 0.40 0.50 0.50 1.40 1.00 1.00 COMMUTER RAIL SERVICES TOTAL Rail Operations Division Budgets 61 Rail Operations cont. GRADE 2010 FTE 2011 FTE 2012 FTE Manager of Rail Services D63 1.00 0.50 0.50 Rail Mechanical Safety Officer D62 0.60 0.50 0.50 1.60 1.00 1.00 POSITION LIGHT RAIL SERVICES LIGHT RAIL SERVICES TOTAL MAINTENANCE OF WAY Manager of Maintenance of Way D63 1.00 1.00 1.00 Chief Rail Engineer D63 1.00 0.00 0.00 Manager of Signal and Communications D63 0.00 0.00 1.00 Environmental Project Planner C41 1.00 0.00 0.00 Real Estate Asset Administrator C41 1.00 0.00 0.00 Right of Way Coordinator B22 1.00 1.00 1.00 MAINTENANCE OF WAY TOTAL 5.00 2.00 3.00 RAIL OPERATIONS TOTAL FTE'S 12.00 8.00 11.00 62 NCTD FY11 Operating and Capital Budget Rail Operations cont. DESCRIPTION The Rail Operations Division consists of Chief of Rail Operations, Commuter Rail Services, Light Rail Services and Maintenance-of-Way. The departments making up the Rail Operations Division are described further below: CHIEF OF RAIL OPERATIONS The Chief of Rail Operations Department is responsible for all rail transit system operations, maintenance, and project development. The department is also involved in all engineering aspects of rail related services and the development and maintenance of rail infrastructure. The staff includes a Chief of Rail Operations, a Chief Engineer, a Rail Program Manager, and a Rail Operations Technician. COMMUTER RAIL SERVICES Commuter Rail Services is the area responsible for the operation, oversight and direction to the commuter rail contractor's provision of COASTER service. The Commuter Rail Services budget includes 0.5 FTE of the Manager of Rail Services, 0.5 FTE of the Rail Mechanical Safety Officer and is also supported by other staff in the division. The Purchased Transportation costs of the commuter rail contractor for COASTER service include operation and maintenance, and supply of rail rolling stock. Also included in the COASTER's department budget are fuel, heavy equipment overhaul items not already covered in the operating agreement, and also rail dispatching expenses contracted through Metrolink. LIGHT RAIL SERVICES Similar to Commuter Rail, the Light Rail Services department is responsible for the operation and oversight of SPRINTER transportation and service functions. The Purchased Transportation costs of the light rail contractor for SPRINTER service operation and maintenance of equipment, along with dispatch and Supervisory Control and Data Acquisition (SCADA) system support are included in this budget responsibility area. The department currently consists of 0.5 FTE of the Manager of Rail Services, and 0.5 FTE of the Rail Mechanical Safety Officer, and is supported by system safety staff. MAINTENANCE OF WAY Maintenance of Way is the department concerned with the on-going management oversight and direction to the rail contractor with regard to maintenance of the NCTD-owned railroad rights-of-way. In addition, management of certain special projects on the right-of-way is conducted by this staff. A key responsibility of this area is the on-going monitoring and assessment of right-of-way condition, and the programming of repair and/or replacement projects as track, signal equipment, or structures require it. This department is also responsible for controlling access and use by third parties to NCTD rights-of-way for temporary construction activities. This area includes a Manager of Maintenance of Way, and the Right-of-Way Coordinator. Rail Operations Division Budgets 63 Rail Operations cont. Operating Expenses by Department FY 2011 Budget DEPARTMENT Chief of Rail Operations $ Commuter Rail Services 500,636 FY 2011 Y/E Estimate $ 448,043 % CHANGE FY12 TO FY11 Est Actual % CHANGE FY12 TO FY11 Budget 653,699 45.9% 31% FY 2012 Budget $ 11,093,310 10,025,682 12,144,140 21.1% 9% Light Rail Services 8,409,714 7,596,651 8,423,932 10.9% 0% Maintenance of Way 2,893,720 2,637,195 2,906,667 10.2% 0% $ 22,897,380 $ 20,707,571 $ 24,128,438 16.5% 5% % CHANGE FY12 TO FY11 Est Actual % CHANGE FY12 TO FY11 Budget 952,851 43.1% 38% 404,377 27.0% 22% TOTAL RAIL OPERATIONS Operating Expenses by Cost Classification FY 2011 Budget EXPENSES Salaries and Wages Employee Benefits $ 690,953 330,608 FY 2011 Y/E Estimate $ 666,094 318,331 FY 2012 Budget $ Professional Services 8,055,055 6,372,964 8,182,804 28.4% 2% Materials and Supplies 3,291,508 2,331,950 3,833,200 64.4% 16% Utilities 310,500 204,552 287,976 40.8% (7%) Taxes 269,134 239,933 339,714 41.6% 26% 10,444,360 10,055,474 10,475,976 4.2% 0% 24,362 12,223 22,440 83.6% (8%) (836,400) 332,501 (708,200) (313.0%) (15%) 317,300 173,549 337,300 94.4% 6% $ 22,897,380 $ 20,707,571 $ 24,128,438 16.5% 5% Purchased Transportation Travel, Meetings and Misc. Expense Reclass/Reimbursement Leases and Rentals TOTAL RAIL OPERATIONS BUDGET HIGHLIGHTS By Department Chief of Rail Operations: Increase of 2 positions are added to this department for FY12 Commuter Rail Services: Increased expenses related to contractal increase in purchased transportation agreement and increased fuel costs based on increased Sunday service. 64 NCTD FY11 Operating and Capital Budget Rail Operations cont. By Classification Salaries and Wages and Benefits: Increase due to the 2 added positions in the Chief of Rail Operations department. Materials and Supplies: Increase due to projected increase fuel expense nased on increase COASTER and SPRINTER service. Taxes: Increase tax expense based on increase in purchase of fuel. Rail Operations Division Budgets 65 This page left intentionally blank 66 NCTD FY11 Operating and Capital Budget Bus Operations, Planning and Safety Chief of Bus Operations, Planning and Safety Contract Operations and Maintenance Transit Enforcement Service Planning System Safety and Compliance POSITION GRADE 2010 FTE 2011 FTE 2012 FTE E83 0.00 1.00 1.00 0.00 1.00 1.00 CHIEF OF BUS OPERATIONS, PLANNING AND SAFETY Chief of Bus Operations, Planning and Safety CHIEF OF BUS OPERATIONS, PLANNING AND SAFETY TOTAL CONTRACT OPERATIONS AND MAINTENANCE Manager Contract Operations and Maintenance D63 0.00 1.00 1.00 Quality Control Supervisor C41 0.00 2.00 4.00 General Service Supervisor B23 0.00 0.50 0.00 0.00 3.50 5.00 CONTRACT OPERATIONS AND MAINTENANCE TOTAL Bus Operations, Planning and Safety Division Budgets 67 Bus Operations, Planning and Safety cont. GRADE 2010 FTE 2011 FTE 2012 FTE Manager of Fleet Maintenance D63 1.00 0.00 0.00 Shift Supervisor II C41 2.00 0.00 0.00 Fleet Maintenance Trainer B32 1.00 0.00 0.00 Shift Supervisor I B31 3.00 0.00 0.00 Administrative Assistant B21 1.00 0.00 0.00 8.00 0.00 0.00 POSITION FLEET MAINTENANCE ADMINISTRATION FLEET MAINTENANCE ADMINISTRATION TOTAL INSPECTION & MAINTENANCE OF REVENUE VEHICLES Bus Servicer II BU2 2.00 2.00 0.00 Bus Servicer I BU2 18.00 13.00 0.00 Mechanic II BU2 11.00 11.00 0.00 Mechanic I BU2 22.00 17.00 0.00 Mechanic Assistant BU2 10.00 4.00 0.00 63.00 47.00 0.00 3.00 2.00 0.00 3.00 2.00 0.00 REVENUE VEHICLE MAINTENANCE TOTAL FLEET MAINTENANCE FARE EQUIPMENT Mechanic I BU2 FLEET MAINTENANCE FARE EQUIPMENT TOTAL STORES Storeroom Supervisor B31 1.00 0.00 0.00 Storekeeper II BU2 1.00 1.00 0.00 Storekeeper I BU2 7.00 3.00 0.00 Shipping and Receiving Clerk BU2 1.00 1.00 0.00 10.00 5.00 0.00 STORES TOTAL 68 NCTD FY11 Operating and Capital Budget Bus Operations, Planning and Safety cont. GRADE 2010 FTE 2011 FTE 2012 FTE Manager of Facility Maintenance D63 1.00 0.00 0.00 Facility Maintenance Superintendent C43 1.00 0.00 0.00 Facility Maintenance Supervisor I B31 2.00 0.00 0.00 General Services Supervisor B23 3.00 0.00 0.00 Maintenance Processing Technician B22 1.00 0.00 0.00 POSITION FACILITY MAINTENANCE Facility Maintenance Craftsman BU2 2.00 0.00 0.00 Facility Maintenance Mechanic BU2 4.00 2.00 0.00 Facility Maintenance Worker BU2 11.00 8.00 0.00 General Services Worker BU2 28.00 22.00 0.00 53.00 32.00 0.00 FACILITY MAINTENANCE TOTAL TRANSIT ENFORCEMENT Chief of Transit Enforcement D62 1.00 1.00 0.50 Code Enforcement Supervisor B31 0.00 1.00 1.00 Control Center Supervisor B31 1.00 0.00 0.00 Code Enforcement Officer B21 0.00 15.00 15.00 Control Center Technician B21 17.00 0.00 0.00 19.00 17.00 16.50 TRANSIT ENFORCEMENT TOTAL SERVICE PLANNING Director of Service Planning E83 1.00 1.00 1.00 Manager of Service Implementation D62 0.00 1.00 1.00 Transportation System Scheduler C41 1.00 1.00 1.00 Transit Planner C41 0.00 0.00 1.00 Associate Planner B32 1.00 0.00 0.00 3.00 3.00 4.00 SERVICE IMPLEMENTATION TOTAL SYSTEM SAFETY AND COMPLIANCE Manager of System Safety and Compliance D62 1.00 1.00 1.00 Rail Safety Inspector C41 1.00 1.00 1.00 2.00 2.00 2.00 RAIL SYSTEM SAFETY AND COMPLIANCE TOTAL Bus Operations, Planning and Safety Division Budgets 69 Bus Operations, Planning and Safety cont. GRADE 2010 FTE 2011 FTE 2012 FTE Manager of Service Quality and Accessibility D62 0.00 1.00 0.00 Accessible Services Administrator C51 1.00 0.00 0.00 1.00 1.00 0.00 POSITION SERVICE QUALITY AND ACCESSIBILITY ACCESSIBLE SERVICES TOTAL BUS OPERATIONS ADMINISTRATION Manager of Bus Operations D63 1.00 0.00 0.00 Division Superintendent D43 2.00 0.00 0.00 Dispatch Superintendent C42 1.00 0.00 0.00 Transit Supervisor II B31 3.00 0.00 0.00 Transit Supervisor I B23 8.00 0.00 0.00 Dispatch Supervisor B23 8.00 0.00 0.00 Administrative Assistant B21 2.00 0.00 0.00 25.00 0.00 0.00 BUS OPERATIONS ADMINISTRATION TOTAL COACH OPERATORS Coach Operator - Full Time BU1 248.00 0.00 0.00 Coach Operator - Part Time BU1 5.00 0.00 0.00 COACH OPERATOR TOTAL 253.00 0.00 0.00 BUS OPERATIONS, PLANNING AND SAFETY TOTAL FTE's 440.00 113.50 28.50 70 NCTD FY11 Operating and Capital Budget Bus Operations, Planning and Safety cont. BUS OPERATIONS PERFORMANCE MEASURES / STATISTICS 2010 Actual 2011 Projected 2012 Objective On-Time Performance 95.9% 95.1% 95.0% Scheduled Trips Completed 99.9% 99.9% 99.8% 180,857 166,854 100,000 Miles Between Chargeable Accidents FACILITY MAINTENANCE PERFORMANCE MEASURES / STATISTICS 2010 Actual Facility PM Schedule Adherence 2011 Projected 2012 Objective 91.0% 91.0% 90.0% FLEET MAINTENANCE PERFORMANCE MEASURES / STATISTICS 2010 Actual 2011 Projected 2012 Objective Revenue Vehicle Miles Between Road Failures 15,359 15,806 16,000 Vehicle PM Adherence 100.0% 99.9% 99.9% COASTER PERFORMANCE MEASURES / STATISTICS COASTER: 2010 Actual 2011 Projected 2012 Objective On-Time Performance Level 96.3% 95.8% 95.0% Service Complaints/100,000 passengers 7.3 8 <5.0 Passengers per Trainset Revenue Hour 197 212 210 $2,389 <$2487 <$2678 Operating Cost per Trainset Revenue Hour SPRINTER PERFORMANCE MEASURES / STATISTICS SPRINTER: 2010 Actual 2011 Projected 2012 Objective On-Time Performance Level 99.3% 99% >98.0% Service Complaints/100,000 passengers 5.9 3.6 <5.0 Passengers per Trainset Revenue Hour 97 98 >105 $585 $576 <$680 Operating Cost per Trainset Revenue Hour Bus Operations, Planning and Safety Division Budgets 71 Bus Operations, Planning and Safety cont. DESCRIPTION The Bus Operations, Planning and Safety Division consists of Contract Operations and Maintenance, Fleet and Facility Maintenance, Transit Enforcement, Service Planning, System Safety and Compliance, and Service Quality and Accessibility. The specific departments included in the Bus Operations, Planning and Safety Division are described below: CHIEF OF BUS OPERATIONS, PLANNING AND SAFETY The Chief of Operations, Planning, and Safety is responsible for overall guidance and direction to the areas within this Division, and provides representation of the Bus Operations, Planning, and Safety Division at the Executive and Board level. This department provides both a leadership and support role to the other departments to help them meet their objectives and also takes the lead on certain key District projects, including Positive Train Control. Staff in this area consists of the Chief of Bus Operations, Planning, and Safety. CONTRACT OPERATIONS AND MAINTENANCE The Contract Operations and Maintenance department ensures the District's bus operations, properties, and facilities are designed, maintained, and operated in a safe and efficient manner in compliance with the specifications and regulations of the Federal Transit Administration (FTA). The department also monitors and/or directs and audits contractors that provide bus operations, fleet and facility maintenance, and support services. FLEET MAINTENANCE Fleet Maintenance provides safe, reliable and clean vehicles, while ensuring compliance with all local, state and federal regulations. The department is responsible for maintaining the mechanical integrity of the fleet including performing preventive and predictive maintenance, servicing air conditioning, body shop repair, maintaining farebox equipment and other miscellaneous repairs. The department also fuels and cleans the fleet on a daily basis. Fleet Maintenance direction and supervision is now the responsibility of the Bus Operations and Maintenance Contractor; however, the represented employees will continue to be NCTD employees until the end of FY 2011. Oversight is provided by the NCTD Contract Operations and Maintenance Department. The department consists of Mechanics, Mechanic Assistants, and Bus Servicers. Stores is included in Fleet Maintenance and is responsible for managing the inflow and outflow of materials and repair parts. This group consists of four Storekeepers and a Shipping and Receiving Clerk. FACILITY MAINTENANCE Facility Maintenance is responsible for performing preventive maintenance and repairs on all NCTD buildings, mechanical systems and equipment, and property. The department provides support to all divisions by maintaining transit centers, rail station platforms, bus stops, maintenance and administrative facilities. This area also develops energy efficiency programs that assist in reducing energy costs. Facility Maintenance direction and supervision is now the responsibility of the Bus Operations and Maintenance Contractor; however, the represented employees will continue to be NCTD employees until the end of FY2011. Oversight is provided by the NCTD Contract Operations and Maintenance Department. The department includes Craftsmen, Mechanics, Facility Maintenance Workers and General Services Workers. TRANSIT ENFORCEMENT The Transit Enforcement department is responsible for the management and operation of all security programs at NCTD. This includes operation of NCTD's "Station O" at Oceanside and "Station E" at Escondido security 72 NCTD FY11 Operating and Capital Budget Bus Operations, Planning and Safety cont. monitoring headquarters, posted security officers at NCTD transit centers and stations, security patrol of NCTD rights-of-way, and transit fare enforcement. The department consists of a Chief of Transit Enforcement, a Code Enforcement Supervisor, and fifteen (15) Code Enforcement Officers. Contracts for a private security firm are budgeted under this department to provide the personnel for station and right-of-way patrols. SERVICE PLANNING The Service Planning department plans and implements NCTD's transit services based on Board goals to maximize ridership as well as provide public transportation access in remote areas. The department is responsible for scheduling which includes reviewing, maintaining, and revising fixed-route bus schedules to ensure reliable service to the public. Service Planning works closely with the San Diego Association of Governments (SANDAG) and local governments to promote transit service including building bus stops and incorporating transit-friendly design into new developments. The department also represents NCTD for regional transit issues including support for the region's long-term vision for convenient, fast and frequent transit services. Staff includes the Director of Service Planning, a Manager of Service Implementation, and a Transportation System Scheduler. SYSTEM SAFETY AND COMPLIANCE The System Safety and Compliance department consists of a Manager of System Safety and Compliance and a Rail Safety Inspector. This area is responsible for ensuring that all of NCTD's transit service operations and maintenance activities are conducted in full compliance with applicable federal, state, and industry regulations and standards, and the operating contracts. The COASTER is covered under extensive Federal Railroad Administration regulations, the SPRINTER is covered under regulations of the California Public Utilities Commission, and the BREEZE and LIFT are covered by the California Vehicle Code and certain regulations of the Federal Transit Administration. SERVICE QUALITY AND ACCESSIBILITY The Service Quality and Accessibility department administers NCTD's ADA Paratransit services. The department manages the paratransit eligibility process including the re-certification of existing customers and oversees the transportation services provided by the LIFT Service contractor. The department also administers a mobility travel training program to train seniors and persons with disabilities to use NCTD's fixed route services. The staff in this department includes a Manager, a Mobility Travel Trainer Supervisor, and a Transit Buddy Coordinator. Bus Operations, Planning and Safety Division Budgets 73 This page left intentionally blank 74 NCTD FY11 Operating and Capital Budget Bus Operations, Planning and Safety cont. Operating Expenses by Department FY 2011 Budget DEPARTMENT Chief of Bus Operations, Planning and Safety Contract Operations and Maintenance $ 264,356 27,331,594 FY 2011 Y/E Estimate $ 184,953 28,697,033 % CHANGE FY12 TO FY11 Est Actual FY 2012 Budget $ % CHANGE FY12 TO FY11 Budget 240,054 29.8% (9%) 34,823,830 21.3% 27% Fleet Maintenance 4,044,959 4,247,008 0 (100.0%) (100%) Facility Maintenance 1,885,556 1,849,454 0 (100.0%) (100%) Transit Enforcement 2,541,222 2,627,988 2,792,705 6.3% 10% 640,636 607,790 831,249 36.8% 30% Service Planning System Safety and Compliance Service Quality and Accessibility TOTAL BUS OPERATIONS, PLANNING AND SAFETY 208,170 179,333 186,394 3.9% (10%) 3,995,923 3,700,261 2,841,157 (23.2%) (29%) $ 40,912,416 $ 42,093,820 $ 41,715,389 (0.9%) 2% FY 2011 Budget FY 2011 Y/E Estimate FY 2012 Budget Operating Expenses by Cost Classification EXPENSES Salaries and Wages % CHANGE FY12 TO FY11 Est Actual % CHANGE FY12 TO FY11 Budget $ 5,488,855 $ 5,604,917 $ 1,866,054 (66.7%) (66%) Employee Benefits 2,706,502 2,744,245 851,036 (69.0%) (69%) Professional Services 2,729,984 2,744,624 3,050,932 11.2% 12% Materials and Supplies 4,495,673 3,666,842 4,191,300 14.3% (7%) Utilities 1,349,587 1,370,261 1,428,250 4.2% 6% 347,038 256,731 294,717 14.8% (15%) 22,711,669 24,781,532 29,035,575 17.2% 28% 51,907 35,953 20,375 (43.3%) (61%) (181,400) (130,700) (137,100) 4.9% (24%) Taxes Purchased Transportation Travel, Meetings and Misc. Expense Reclass/Reimbursement Leases and Rentals Workers' Comp TOTAL BUS OPERATIONS, PLANNING AND SAFETY 122,600 158,642 115,250 (27.4%) (6%) 1,090,000 860,773 999,000 16.1% (8%) $ 40,912,416 $ 42,093,820 $ 41,715,389 (0.9%) 2% BUDGET HIGHLIGHTS By Department Chief of Bus Operations, Planning and Safety: Decreased due to reduction in professional services. Contract Operations and Maintenance: Increase is due to the second and final transition phase (Fleet and Facility Maintenance) of the BREEZE operations over to First Transit. Tranist Enforcement: Increase is due to increased contract costs and additional increased professional services costs. Service Planning: Increased due to the addition of one position and increase professional and technical services Service Quality and Accessibility: Decrease due to the reduction of one position and the movement of 3 positions to another department. Bus Operations, Planning and Safety Division Budgets 75 By Cost Classification Salaries and Wages and Employee Benefits: Decreased due to transition of Fleet and Facility Maintenance to First Transit Purchased Transportation: Increased due to increased costs from the BREEZE and LIFT contract. Travel, Meetings and Misc: Reduced based on departments reducing curtailing spending Worker Comp: Reduced costs due to reduced work force and projected incidents. 76 NCTD FY11 Operating and Capital Budget Capital Improvement Program Overview The Capital Improvement Program (CIP) is a financial plan of proposed capital projects. The CIP is designed to meet the NCTD's ongoing operational and infrastructure needs in a responsive and efficient manner. It incorporates the current and future needs of the NCTD and is updated annually. Capital projects must meet the following guidelines: o o o Have a monetary value of at least $5,000 Have a life of at least three years Result in the creation of a fixed asset or the revitalization of a fixed asset The current year of the CIP is reauthorized with the approval of the operating budget; approval of the subsequent year is done to facilitate the submittal of corresponding funding applications. This allows for the availability of funds for approved projects at the beginning of the subsequent fiscal years. However, all years beyond the current year are subject to change and specific approval of the Board upon adoption of the annual operating budget. The FY 2011 Baseline Constrained CIP Budget is $11 million. This amount is $1 million more than the FY 2010 Baseline CIP budget of $10 million. As a result of regional consolidation in San Diego in 2004 of certain public transportation functions under SANDAG, the Regional Transportation Planning Authority, pursuant to SB 1703, responsibility for planning and construction of NCTD major projects of regional significance was transferred to SANDAG. NCTD's CIP program consists of projects necessary to support existing operations. These projects typically include the following: o Periodic and systematic replacement of transit buses and ADA vans o Minor railroad right-of-way replacements and improvements o Periodic replacement of service vehicles o Replacement of support equipment (shop and garage equipment, operating yard equipment, transit way equipment and computer equipment) o Improvements to buildings and structures (roof replacements and bus stop improvements) Capital Improvement Program 77 Capital Improvement Program Overview cont. CAPITAL PROJECT IMPACT ON OPERATING BUDGET The current and future operating impact of both capital projects is analyzed during the capital review and prioritization process. Projects submitted for consideration in the capital budget are prioritized according to six criteria: safety and security; replacement value; operating cost benefit; travel time savings; customer benefit, and other. The operating cost benefit criteria is based on the estimated benefits and savings of the project and is rated on a scale from 1 point to 5 points depending on the annual estimated benefit or cost savings. Baseline projects typically involve the replacement of vehicles and equipment which usually results in savings in materials and labor costs through the avoidance of excessive maintenance. The operating budget impact of each capital project included in the CIP budget was estimated and categorized as one of the following five types: Unfavorable < $10K - The impact of the project on operating expenses will be less than $10,000 per year Unfavorable $10K - $25K - The impact of the project on operating expenses will be in excess of $10,000 but less than $25,000 per year Unfavorable > $25K - The impact of the project on operating expenses will be in excess of $25,000 per year Favorable - The project will reduce operating costs or generate revenues to offset expenses in the amount of : 0 - $5K $5K - $25K $25K - $50K $50K - $100K $100K - $200K NSI - No significant impact on the operating budget 78 NCTD FY11 Operating and Capital Budget Capital Improvement Program Overview cont. Capital Improvement Program 79 Baseline Constrained CIP Summary Baseline Constrained Capital Improvement Program Summary Asset Class 2012 Asset Description 1,568,002 Revenue Vehicles 223 Service Vehicles 337 Buildings & Structures 176,000 3,750 338 Bldg & Structure Improve. 881,231 858,000 431 5,179,957 433 Right of Way Improvements 434 435 Shop & Garage Equipment 436 Signal Equipment 438 Vehicle Movement Control Equipment 439 Data Processing Equipment 9,085,000 $ 29,871,209 257,047 262,500 1,019,558 134,000 209,000 308,000 830,750 1,956,575 462,250 246,000 4,404,056 209,250 $ 8,360,750 $ Totals Revenue Collection and Fare Equipment 440 5,677,500 2016 Operating Yard Equipment 271,287 $ 2015 Transit Way Equipment 19,474 $ 2014 104 TOTALS $ 2013 3,191,976 4,522,424 3,981,750 3,921,750 3,921,750 19,539,650 21,000 2,482 21,000 99,750 21,000 165,232 5,049,039 525,000 525,000 525,000 525,000 7,149,039 157,500 157,500 - - - - - 3,088,682 637,100 494,925 164,453 473,250 4,858,410 $ 13,995,404 $ 12,000,000 $ 13,000,000 $ 14,000,000 $ 15,000,000 $ 67,995,404 Revenue Vehicles Service Vehicles Buildings & Structures Bldg & Structure Improve. Transit Way Equipment Right of Way Improvements Operating Yard Equipment Shop & Garage Equipment Signal Equipment Vehicle Movement Control Equipment Revenue Collection and Fare Equipment Data Processing Equipment 80 NCTD FY11 Operating and Capital Budget Baseline Constrained CIP Detail FY 2012 Job # Description Amount Requested Transit Mode 412202 Intermediate Overhaul of 2 Model Yr 1991 F59PHI Locomotives COASTER Favorable 612006 Sprinter Vehicle Horn Sound Synthesizer/Amp SPRINTER NSI 15,158 612005 Replacement Sprinter Vehicle AC Compressors SPRINTER NSI 56,184 412201 Overhaul of 1 Coaster Locomotive Train Utilities (HEP) Generator COASTER Favorable $0-5K Sprinter Utility Carts INLAND RR Bus Shelter Repair and Replacement 112120 Customer Service Enhancement 52,500 1,568,002 Unfavorable <$10K 19,474 $ FIXED ROUTE Unfavorable <$10K ALL 19,474 $ 117,000 $ Asset Class 223 - Service Vehicles 112127 1,444,160 $ Asset Class 104 - Revenue Vehicles 612112 $ 176,000 $ 63,000 Unfavorable <$10K Asset Class 337 - Buildings & Structures 59,000 112122 East Division Shop Roof Replacement FIXED ROUTE Favorable $0-5K 112121 East Division Unleaded Tank Project FIXED ROUTE Favorable $5-$25K 60,000 412130 Storage Tank Removal & Replacement FIXED ROUTE Favorable $5-$25K 415,000 412116 Parking Lot Signage ALL NSI 112115 Security Fencing ALL NSI 26,250 612117 Sprinter Facility Security Enhancements SPRINTER Favorable $0-$5K 52,500 412118 Stuart Mesa MF Security Enhancements COASTER Unfavorable <$10K 412128 Stuart Mesa MF OSHA Compliant Roof Access COASTER Favorable $0-$5K 612119 Site Survey, Enviro and Utilities Survey for SMMF Wheel True Facility 612111 Small Rail Facility Projects COASTER 52,500 126,000 NSI COASTAL RR 26,250 NSI 57,149 2,582 $ Asset Class 338 - Bldg & Structure Improvements 881,231 512201 At Grade Crossing Renewal COASTAL RR NSI 512440 Convention Center Event Rail Platform COASTAL RR Unfavorable $10-$25K 412330 Platform Security Improvements COASTAL RR NSI 15,750 512501 Crosstie Renewal COASTAL RR NSI 1,123,476 512450 Green Beach Bridge Construction (Bridge 208.6) COASTAL RR Unfavorable $10-$25K 512801 Rail Grinding COASTAL RR NSI 183,750 512401 Rail Replacement COASTAL RR NSI 262,500 512701 Right of Way Drainage Improvements COASTAL RR NSI 212,500 512004 Right of Way Signage Safety Enhancements COASTAL RR NSI 52,500 512301 Turnout Renewal Program COASTAL RR NSI 367,500 Fleet Shop Tools 346,500 425,000 202,500 $ Asset Class 433 - Right-of-Way Improvements 112113 $ FIXED ROUTE NSI 3,191,976 512901 Signal Replacement Project COASTAL/INLAND RR NSI 511555 Positive Train Control (PTC) COASTAL RR $ 21,000 $ Asset Class 435 - Shop & Garage Equipment 21,000 Unfavorable $5-$25K Business Intelligence Enhancements 412126 Coaster Automated Passenger Counter 112123 36,539 5,012,500 $ Asset Class 436 - Signal Equipment 612125 $ 5,049,039 $ 352,800 ALL NSI COASTER NSI IT Enhancements ALL NSI 200,132 412124 Network Upgrades ALL NSI 215,250 112114 Security Camera Enhancements 411010 Coaster Security Network ALL NSI COASTER 756,000 Unfavorable <$10K 26,250 1,538,250 Asset Class 440 - Data Processing Equipment $ 3,088,682 TOTAL Fiscal Year 2012 $ 13,995,404 Capital Improvement Program 81 Baseline Constrained CIP Detail FY 2013 Description CNG Transit Buses Transit Mode FIXED ROUTE Amount Requested $ 3,571,707 SPRINTER Vehicle Drive System Overhaul SPRINTER 1,372,000 Overhaul of 1 COASTER locomotive train utilities (HEP) generator COASTER 52,500 Transmission and Engine rebuilds FIXED ROUTE 183,750 $ COASTAL/INLAND RR Replacement Vehicle SDNR-106 262,500 271,287 $ 3,750 $ Replacement Vehicle SDNR-20 $ $ Asset Class 104 - Revenue Vehicles 5,179,957 3,750 $ 89,500 COASTAL/INLAND RR Asset Class 223 - Service Vehicles Small building projects ALL Asset Class 337 - Buildings & Structures Rail Facility Renewal (batteries for Sprinter control center) SPRINTER Emergency Lighting Central Inverter Battery Replacement (Sprinter) 8,787 SPRINTER Replacement of pedestrian bridge surfaces Parking Capacity Improvement Final E/D 89,500 FIXED ROUTE 179,000 COASTER 500,000 $ Asset Class 338 - Bldg & Structure Improvements 858,000 $ 200,000 Bridge Design (255.1) COASTAL RR Green Beach Bridge Construction (Bridge 208.6) COASTAL RR 810,000 Rail Infrastructure Projects COASTAL RR 525,000 Rail Grinding COASTAL RR 210,000 Rail Replacement COASTAL RR 262,500 Right of Way Signage Safety Enhancements COASTAL RR 52,500 Crosstie Renewal COASTAL RR 1,302,424 Turnout Renewal Program COASTAL RR 367,500 Right of Way Drainage Improvements COASTAL RR 21,000 At Grade Crossing Renewal COASTAL RR 346,500 Convention Center Event Rail Platform COASTAL RR 425,000 $ Shop and garage equipment for Facilities Asset Class 435 - Shop & Garage Equipment Signal Replacement Project COASTAL/INLAND RR Asset Class 436 - Signal Equipment $ 2,482 2,482 $ 525,000 $ ALL 4,522,424 $ Asset Class 433 - Right-of-Way Improvements 525,000 $ 220,250 Network Upgrades ALL Sustainability Investments ALL 280,350 Business Intelligence Enhancements ALL 136,500 Asset Class 440 - Data Processing Equipment $ 637,100 TOTAL Fiscal Year 2013 $ 12,000,000 82 NCTD FY11 Operating and Capital Budget Baseline Constrained CIP Detail FY 2014 Description CNG Transit Buses Transit Mode FIXED ROUTE Amount Requested $ 2,891,000 SPRINTER Vehicle Drive System Overhaul SPRINTER 2,734,000 Overhaul of 1 COASTER locomotive train utilities (HEP) generator COASTER 52,500 $ Non Revenue Support Vehicles (sedans & trucks) Asset Class 223 - Service Vehicles Bus Shelter Repair and Replacement FIXED ROUTE Asset Class 337 - Buildings & Structures $ 209,250 209,250 $ 134,000 $ COASTAL/INLAND RR 5,677,500 $ Asset Class 104 - Revenue Vehicles 134,000 $ 97,000 Rail Facility Renewal (batteries for Sprinter control center) SPRINTER Emergency Lighting Central Inverter Battery Replacement (Sprinter) SPRINTER 97,000 FIXED ROUTE 157,500 Solana Beach HVAC replacement COASTER 75,075 Roll Over Wheel Truing at Stuart Mesa COASTER 1,500,000 West division roof replacement (305 Via Del Norte) Move Control Center to Tremont ALL 30,000 $ Asset Class 338 - Bldg & Structure Improvements 1,956,575 $ 750,000 Bridge Design (255.3) COASTAL RR Right of Way Signage Safety Enhancements COASTAL RR 60,000 Crosstie Renewal COASTAL RR 1,491,750 Right of Way Drainage Improvements COASTAL RR 21,000 At Grade Crossing Renewal COASTAL RR 346,500 Turnout Renewal Program COASTAL RR 367,500 Rail Replacement COASTAL RR 262,500 Rail Infrastructure Projects COASTAL RR 525,000 Rail Grinding COASTAL RR 157,500 $ Fleet Shop Tools Asset Class 435 - Shop & Garage Equipment Signal Replacement Project COASTAL/INLAND RR Asset Class 436 - Signal Equipment Network Upgrades ALL Sustainability Investments $ 21,000 21,000 $ 525,000 $ FIXED ROUTE 3,981,750 $ Asset Class 433 - Right-of-Way Improvements 525,000 $ 215,250 ALL 279,675 Asset Class 440 - Data Processing Equipment $ 494,925 TOTAL Fiscal Year 2014 $ 13,000,000 Capital Improvement Program 83 Baseline Constrained CIP Detail FY 2015 Description CNG Transit Buses SPRINTER Vehicle Drive System Overhaul Transmission and Engine rebuilds Transit Mode FIXED ROUTE Amount Requested $ 4,345,500 SPRINTER 2,729,000 FIXED ROUTE 183,750 Overhaul of 1 COASTER locomotive train utilities (HEP) generator COASTER 52,500 COASTER F40 Locomotive Overhaul COASTER 735,000 COASTER Car Overhaul COASTER 315,000 $ Asset Class 104 - Revenue Vehicles 8,360,750 $ 73,500 Replacement Vehicle SDNR-108 COASTAL/INLAND RR Replacement Vehicle SDNR-109 COASTAL/INLAND RR 73,500 Replacement Vehicle SDNR-205 COASTAL/INLAND RR 78,750 Non Revenue Support Trucks COASTAL/INLAND RR 31,297 $ Asset Class 223 - Service Vehicles Bus Shelter Repair and Replacement FIXED ROUTE 257,047 Emergency Lighting Central Inverter Battery Replacement (Sprinter) SPRINTER Rail Facility Renewal (batteries for Sprinter control center) 209,000 209,000 $ 104,500 SPRINTER Rail Facility Renewal (non security items) $ $ Asset Class 337 - Buildings & Structures 104,500 COASTER 17,000 Small building projects ALL 78,750 Move Control Center to Tremont ALL 157,500 $ Asset Class 338 - Bldg & Structure Improvements 462,250 $ 52,500 Right of Way Signage Safety Enhancements COASTAL RR Bridge Design (234.8) COASTAL RR 750,000 Crosstie Renewal COASTAL RR 1,491,750 Right of Way Drainage Improvements COASTAL RR 21,000 At Grade Crossing Renewal COASTAL RR 346,500 Rail Grinding COASTAL RR 105,000 Rail Replacement COASTAL RR 262,500 Rail Infrastructure Projects COASTAL RR 525,000 Turnout Renewal Program COASTAL RR Asset Class 433 - Right-of-Way Improvements Fleet Shop Tools Shop and garage equipment for Facilities FIXED ROUTE 3,921,750 $ 21,000 78,750 ALL $ COASTAL/INLAND RR Asset Class 436 - Signal Equipment 99,750 $ 525,000 $ Asset Class 435 - Shop & Garage Equipment Signal Replacement Project 367,500 $ 525,000 $ 164,453 Asset Class 440 - Data Processing Equipment $ 164,453 TOTAL Fiscal Year 2015 $ 14,000,000 Network Upgrades 84 ALL NCTD FY11 Operating and Capital Budget Baseline Constrained CIP Detail FY 2016 Description CNG Transit Buses SPRINTER Vehicle Drive System Overhaul Transit Mode FIXED ROUTE Small building projects 7,708,000 1,377,000 $ FIXED ROUTE 9,085,000 $ 262,500 $ COASTAL/INLAND RR Asset Class 223 - Service Vehicles Bus Shelter Repair and Replacement $ SPRINTER Asset Class 104 - Revenue Vehicles Replacement Vehicle SDNR-101 Amount Requested 262,500 $ 224,000 ALL 84,000 $ Asset Class 337 - Buildings & Structures 308,000 $ 112,000 Emergency Lighting Central Inverter Battery Replacement (Sprinter) SPRINTER Rail Facility Renewal (batteries for Sprinter control center) SPRINTER 112,000 Rail Facility Renewal (non security items) COASTER 22,000 $ Asset Class 338 - Bldg & Structure Improvements 246,000 $ 750,000 Bridge Design (254.7) COASTAL RR Supplimental Crosstie Renewal COASTAL RR 441,750 Crosstie Renewal COASTAL RR 1,050,000 Right of Way Drainage Improvements COASTAL RR 21,000 At Grade Crossing Renewal COASTAL RR 346,500 Rail Grinding COASTAL RR 105,000 Rail Replacement COASTAL RR 262,500 Right of Way Signage Safety Enhancements COASTAL RR 52,500 Rail Infrastructure Projects COASTAL RR 525,000 Turnout Renewal Program COASTAL RR Fleet Shop Tools Replace Radio System ALL Asset Class 438 - Radio Equipment Network Replacements ALL Business Intelligence Enhancements 21,000 21,000 $ 525,000 525,000 $ 157,500 $ Asset Class 436 - Signal Equipment $ $ COASTAL/INLAND RR 3,921,750 $ FIXED ROUTE Asset Class 435 - Shop & Garage Equipment Signal Replacement Project 367,500 $ Asset Class 433 - Right-of-Way Improvements 157,500 $ 349,000 ALL 124,250 Asset Class 440 - Data Processing Equipment $ 473,250 TOTAL Fiscal Year 2016 $ 15,000,000 Capital Improvement Program 85 This page left intentionally blank 86 NCTD FY11 Operating and Capital Budget Fare Structure - SPRINTER Light Rail and ADA SPRINTER and BREEZE FARES FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 BREEZE - Basic Fare Regular Senior/Disabled/Medicare $1.75 $0.75 $1.75 $0.75 $2.00 $1.00 $2.00 $1.00 $2.00 $1.00 $2.00 $1.00 $2.00 $1.00 $1.75 $0.75 SPRINTER - Basic Fare Regular Senior/Disabled/Medicare $1.75 $0.75 $1.75 $0.75 $2.00 $1.00 $2.00 $1.00 $2.00 $1.00 $2.00 $1.00 $2.00 $1.00 $2.00 $1.00 SPRINTER/BREEZE Day Pass Regular Senior/Disabled/Medicare $3.50 $1.50 $3.75 $1.50 $4.00 $2.00 $4.00 $2.00 $4.50 $2.25 N/A $2.25 N/A $2.25 N/A $2.25 SPRINTER/BREEZE Monthly Calendar or Rolling 30-Day Pass College Pass $50.00 $40.00 $54.00 $44.00 $54.00 $44.00 $54.00 $44.00 $59.00 $49.00 $59.00 $49.00 $59.00 $49.00 $59.00 $49.00 $5.00 $11.00 $5.00 $11.00 $5.00 N/A $14.00 $5.00 N/A $14.00 $5.00 N/A $14.00 $64.00 $32.00 $16.00 $68.00 $34.00 $17.00 $72.00 $36.00 $18.00 $72.00 $36.00 $18.00 $72.00 $36.00 $18.00 $90.00 $45.00 $22.50 $100.00 $50.00 $25.00 $100.00 $50.00 $25.00 $100.00 $50.00 $25.00 Regional 14 Day Pass $43.00 $43.00 $43.00 Regional Premium 14 Day Pass $60.00 $60.00 $60.00 Regional Day Passes Day Pass Premium Day Pass Region Plus Day Pass (valid on COASTER) and Premium Bus Service Regional Monthly Calendar or Rolling 30-day Pass Regular Youth Senior/Disabled/Medicare $58.00 $29.00 $14.50 $59.00 $30.00 $15.00 $60.00 $30.00 $15.00 Regional Premium Monthly Calendar or Rolling 30-day Pass Regular Youth Senior/Disabled/Medicare ADA FARES FY 2005 Basic Fare FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 $3.50 $3.50 $4.00 $4.00 $4.00 $4.00 $4.00 $3.50 A-1 Fare Structure - COASTER Commuter Rail Services COASTER FARES FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2011 FY 2012 $14.00 Region Plus Day Pass (all zones) FY 2010 $14.00 $14.00 ZONE 1 Basic Fare Regular Senior/Disabled/Medicare $3.75 $1.75 $3.75 $1.75 Monthly Pass (Calendar or Rolling 30-Day Passes) Region Plus Day Pass $105.00 $105.00 Youth $72.00 $72.00 Senior/Disabled/Medicare $34.00 $34.00 $4.00 $2.00 $4.00 $2.00 $5.00 $2.50 $5.00 $2.50 $5.00 $2.50 $4.00 $2.00 $115.00 $77.00 $38.50 $115.00 $77.00 $38.50 $144.00 $91.00 $45.50 $144.00 $91.00 $45.50 $144.00 $91.00 $45.50 $120.00 $82.50 $41.25 $4.50 $2.25 $4.50 $2.25 $5.50 $2.75 $5.50 $2.75 $5.50 $2.75 $5.00 $2.50 $126.00 $126.00 $154.00 $154.00 $154.00 $150.00 $5.00 $2.50 $5.00 $2.50 $6.00 $3.00 $6.00 $3.00 $6.00 $3.00 $5.50 $2.75 $142.00 $142.00 $170.00 $170.00 $170.00 $165.00 ZONE 2 Basic Fare Regular Senior/Disabled/Medicare $4.25 $2.00 $4.25 $2.00 Monthly Pass (Calendar or Rolling 30-Day Passes) Regular $116.00 $116.00 ZONE 3 Basic Fare Regular Senior/Disabled/Medicare $4.75 $2.25 $4.75 $2.25 Monthly Pass (Calendar or Rolling 30-Day Passes) Regular $132.00 $132.00 ZONE 4 Basic Fare Regular Senior/Disabled/Medicare $5.25 $2.50 $5.25 $2.50 $5.50 $2.75 $5.50 $2.75 $6.50 $3.25 $6.50 $3.25 Ten Trip Ticket Regular Seniors & Disabled $48.00 $22.50 $48.00 $22.50 $50.00 $25.00 $50.00 $25.00 $50.00 $25.00 $50.00 $25.00 Monthly Pass (Calendar or Rolling 30-Day Passes) Regular $144.00 $144.00 $154.00 $154.00 $182.00 $182.00 Eliminated Any fare changes to be determined by NCTD Board following separate public hearing. A-2 NCTD FY11 Operating and Capital Budget North San Diego County Community Profile 2000 2010 2020 2030 2040 CARLSBAD Total Population Total Households Median Household Income Median Age 78,247 33,798 $65,854 38.9 106,804 43,844 $56,563 42.1 117,657 48,100 $81,970 44.5 123,551 49,851 $91,662 44.8 127,389 129,381 50,436 50,566 $99,911 $108,624 45.6 45.7 DEL MAR Total Population Total Households Median Household Income Median Age 4,389 4,660 2,557 2,542 $81,941 $112,299 43.6 48.5 4,799 2,586 $92,300 54.9 4,916 2,606 $98,139 56.7 5,053 5,148 2,606 2,606 $99,100 $100,165 55.4 55.3 ENCINITAS Total Population Total Households Median Household Income Median Age 58,014 22,830 $64,821 37.8 65,171 24,877 $60,551 42.3 68,594 26,328 $80,514 44.2 73,052 27,882 $89,727 43.9 75,392 76,659 28,299 28,486 $97,621 $105,186 44.6 45.1 ESCONDIDO Total Population Total Households Median Household Income Median Age 133,559 43,817 $43,208 31.3 147,514 47,682 $40,127 32.7 154,329 50,287 $53,405 33.9 165,267 52,778 $59,494 34.5 172,290 53,692 $65,749 34.1 177,586 54,600 $71,035 34.6 OCEANSIDE Total Population Total Households Median Household Income Median Age 161,029 59,581 $46,144 33.3 183,095 64,758 $44,905 33 195,455 69,565 $56,416 35.2 209,602 73,425 $62,993 36.9 214,445 73,535 $69,146 37.6 217,364 73,600 $73,724 38.3 SAN MARCOS Total Population Total Households Median Household Income Median Age 54,977 18,111 $45,854 32.2 84,391 27,744 $43,439 34.7 90,802 30,068 $61,127 31.4 101,298 33,095 $69,392 32.5 104,448 33,523 $75,597 33.1 105,708 33,596 $80,906 33.8 SOLANA BEACH Total Population Total Households Median Household Income Median Age 12,979 5,754 $73,523 41.6 13,783 6,521 $65,005 45.1 14,227 14,924 15,579 15,942 6,645 6,869 6,997 7,041 $94,480 $105,913 $115,195 $122,461 48.7 49.8 49.2 49.1 VISTA Total Population Total Households Median Household Income Median Age 89,857 28,877 $43,161 30.3 97,513 30,716 $42,954 33.1 100,016 31,602 $55,303 34.3 105,062 32,508 $62,200 35.1 126,809 38,527 $69,437 35 2050 144,536 43,893 $75,152 35.6 A-3 North San Diego County Community Profile cont. Employment Statistics San Diego County Employment by Industry 2010 Annual Average Government 17% Agriculture 1% Natural Resources, Mining & Construction 5% Manufacturing 8% Trade, Transportation & Utilities 15% Other Services 4% Information 3% Leisure & Hospitality 13% Financial Activities 6% Educational & Health Services 12% Professional & Business Services 16% 2010 Industry Employment Total: 1,229,900 SOURCE: California EDD 2011 Unemployment Rates San Diego County Unemployment Rate 10.4% California Unemployment Rate 12.1% US Unemployment Rate 9.2% SOURCE: California EDD, June 2011 A-4 NCTD FY11 Operating and Capital Budget North San Diego County Community Profile cont. Major Employers 2010 Employer Marine Corps Base, Camp Pendleton Number of Employees Percent of Total Employment 60,000 3.8% Palomar College 3,070 0.2% Palomar Pomerado Health 3,000 0.2% Oceanside Unified School District 2,560 0.2% Callaway Golf Company 2,300 0.1% Tri City Medical Center 2,216 0.1% San Onofre Nuclear Generating Station 2,000 0.1% Escondido Union School District 2,000 0.1% Pala Casino Resort and Spa 2,000 0.1% DJO, Inc. 1,700 0.1% Total San Diego County labor force 1: 1,567,692 Sources: The San Diego Daily Transcript, Sourcebook SANDAG, and employer web-site, if available. 1 Total San Diego County labor force obtained from State of California Employment Development Department. A-5 Glossary of Terms Accessible Service: Transit vehicles equipped Budget Calendar: The schedule of key dates with wheelchair lifts. which NCTD follows in the preparation and adoption of the budget. Accounting System: The set of records and procedures which are used to record, classify, and report information on the financial status and operations of an entity. Accrual Basis Accounting: Under this method of accounting, transactions are recognized when they occur, regardless of the timing of related cash receipts and disbursements. Budget Document: The official financial spending and resource plan submitted by the Executive Director, adopted by NCTD's Board of Directors and made available to the public and other interested parties. Budget Message: General discussion of the ADA: Americans With Disabilities Act, enacted by Congress in 1990. proposed budget is included as a part of the budget document. The budget message explains principal budget issues with the background of financial experience in recent years. AFC: Automated Fare Collection System. An Budget Year: Fiscal year for which the budget integrated region-wide fare system that includes TVM's, fareboxes and ticket office terminals that allow riders to purchase fare media at many different locations throughout San Diego County. is being considered. CalPERS: Annual Budget: A budget applicable to a single CAA: Clean Air Act. fiscal year. California Retirement System. CalTrans: California Public Employees Department of APCD: Air Pollution Control District. Transportation. APTA: Capital Assets: Assets of significant value and American Public Transportation Association. ARB: Air Resources Board. ARRA: The American Recovery and Reinvestment Act was signed into law by President Obama on February 17, 2009. The bill is intended to provide a stimulus to the U.S. economy in the wake of the economic downturn. The bill includes federal tax cuts, expansion of unemployment benefits and other social provisions, including domestic spending in education, health care, and infrastructure, including the energy sector. ATP: Authorization to Pay having a useful life of several years, also called fixed assets. The acquisition of property, a facility, or equipment whose cost exceeds $1,000 for equipment and $5,000 for facilities per unit. Capital project costs include installation, delivery cost, and sales and use taxes. Capital Improvement Program (CIP): Multi-year plan of facility construction, capital improvements, and equipment, with their estimated costs and funding sources. Capital Outlay: Purchase or improvements of a tangible fixed asset. Cash Basis Accounting: A basis of accounting fiscal years. under which transactions are recognized only when cash is received or disbursed. BNSF: Burlington Northern Santa Fe. CIP: Capital Improvement Program. Biennial Budget: A budget that spans two BOE: Board of Equalization. BPO: Blanket Purchase Order. A-6 NCTD FY11 Operating and Capital Budget Glossary cont. CMAQ: Congestion Mitigation and Air Quality Program. Funding from FTA that provides operating assistance to new transit services and new or expanded transportation demand management strategies for a maximum of three years. CNG: Compressed Natural Gas. Coach: Bus used for public mass transit. Decision Package: A standardized format whereby departments may request budgetary consideration for new programs and new employee positions. Deficit: The excess of an entity's expenses over its revenues. Department: A sub-section of operational activities within a division which provides specific services. Formally known as a "business unit". Compass: A contactless smart card that allows riders to purchse paperless tickets on a single card that can be used on NCTD transit modes. Depreciation: government which includes an audit opinion as well as basic financial statements and supporting schedules necessary to demonstrate compliance with legal and contractual requirements of NCTD. Allocation of the costs, less salvage value, of fixed assets, including equipment, buildings, and other structures, over their useful lives in a systematic and rational manner. Depreciation reflects the use of the asset(s) during specific operating periods in order to match costs with related revenues in measuring income or determining the costs of carrying out program activities. Contract Services: Services provided to Division: Comprehensive Annual Financial Report (CAFR): The official financial report of a NCTD under contract with vendors from the private sector or other public agencies Contributed Capital: Resources that are externally restricted for the acquisition or construction of capital assets. This category includes, but is not limited to, capital grants, residual equity transfers in, and contributions from developers. CPI: Consumer Price Index. CPUC: California Public Utilities Commission. CTC: California Transportation Commission. Deadhead Hours: The number of hours An organizational unit comprised of departments. A division represents a unit of service responsibility encompassing a broad mandate of related activities. Formally known as a "service group". DMU: Self-propelled Diesel Multiple Unit used for light rail transit. Twelve DMU's were purchased by NCTD for the SPRINTER service. DOE: US Department of Education. DOT: US Department of Transportation. DSR: Damage Survey Report. EIR: Environmental Impact Report. during which a bus is driven while out of revenue service. Employee Benefits: Those benefits paid by NCTD on behalf of their employees. Deadhead Miles: The number of miles a bus is ETC: Escondido Transit Center. driven while out of revenue service. DBE: Disadvantaged Business Enterprise: A business owned by a member of a protected minority class or a woman-owned business Encumbrance: Funds not yet expended but obligated or "set-aside" in anticipation of expenditure. When invoices for the expenditure are paid, the encumbrance is reduced by the disbursement amounts. A-7 Glossary cont. Enterprise Fund: In governmental accounting, Fixed Assets: Assets which are intended to be a fund that provides goods or services to the public for a fee that makes the entity self-supporting. It basically follows GAAP as does a commercial enterprise. held or used for a long term, such as land, buildings, machinery, equipment and other improvements. Expenditures: Where accounts are kept on an accrual or modified accrual accounting basis, expenditures are recognized when goods are received or services rendered. Where accounts are kept on a cash basis, expenditures are recognized only when the cash payments are made. FACT - Full Access and Coordinated Transportation. FACT is the consolidated transportation service agency for San Diego County that coordinates accessible services in the region. Farebox Recovery Ratio: Measurement of fares received against operating costs. FAST: A curb to curb demand bus service that FLSA: The Fair Labor Standards Act sets minimum wage, overtime pay, equal pay and Child Labor Standards to private and public sector employees. Enforcement of the FLSA is assigned to the Department of Labor (DOL), Wage and Hour Division. FRA: Federal Railroad Administration. FTA: Federal Transit Administration. FTE: Full Time Equivalent. Employee positions are budgeted for the amount of time a regular, full-time employee normally works in a year. For example, a full-time employee (1 FTE) is paid for 2,080 hours per year, while a .5 FTE would work 1,040 hours per year. FY: Fiscal Year. was offered by NCTD until August 2008. GAO: General Administration Office. Fast Forward: Recognizing increasing demand Generally Accepted Accounting Principles (GAAP): Uniform standards for financial accounting for new and improved transportation service, NCTD began work on a 10-year Strategic Business Plan in June 1999. Dubbed Fast Forward: Transit Solutions for the 21st Century, this study will guide transportation planning in North County for many years. FBJ: Fallbrook Junction. FEMA: Federal Emergency Management and reporting. They govern the form and content of the basic financial statements of an entity. GFOA: Government Finance Officers Association. HASTUS: A transit scheduling software that uses optimization techniques to generate efficient vehicle timetables and operator assignments. Agency. Headway: The elapsed time between the arrival of FFGA: Full Funding Grant Agreement. transit vehicles traveling in the same direction on a given route, usually expressed in minutes. Fiscal Year: A 12-month period to which the Heavy Rail: A heavy gauge railway with the capacity annual operating budget applies and at the end of which a government determines its financial position and results of its operations. NCTD's fiscal year runs from July 1-June 30. Five-Year Financial Forecast: Estimates of future revenues and expenditures to help predict the future financial condition of NCTD. to handle railway freight cars and locomotives. HOV Lanes: High Occupancy Vehicle lanes. Interest: Revenue derived from the investment of cash and/or reserves. Intermodal: Passengers traveling on more than one type of transportation such as from bus to rail. A-8 NCTD FY11 Operating and Capital Budget Glossary cont. ISTEA: Intermodal Surface Transportation Efficiency Act. MOW: Maintenance of Way, maintenance along Job Classification: The official job title as MTA: Metropolitan Transportation Authority in the railway right of way. assigned by the Human Resources Department. Los Angeles. JANTOC: Joint Agency Team on Consolidation. MTDB: Metropolitan Transit Development Board In response to Senate Bill 329, during the spring of 2000, the San Diego Association of Governments formed JANTOC to study other forms of regional government, and potential positive impacts of improved coordination between existing transportation agencies. JARC: Job Access Reverse Commute. FTA funding to improve access to transportation services for employment related activities. The program's goal is to provide transportation services to low income individuals and to transport residents of urbanized and nonurbanized areas to suburban employment opportunities. JPA: Joint Powers Authority. Light Rail: A type of transit vehicle railway with light-gauge track and cars, compared to freight, or "heavy rail". Light rail may be on exclusive or shared rights-of-way, and multi-car or single-car trains may be automated or manually operated. LOSSAN: Los Angeles-San Diego Intercity Railway/Los Angeles to San Diego Rail Corridor Agency. LR: Light Rail. MAA: Medi-Cal Administrative Activities. A reimbursement program with Medi-Cal that supports and enhances ADA/paratransit service. Metrolink: The regional commuter rail system connecting Los Angeles with Orange County, Riverside, San Bernardino, and Ventura counties. Service began in October 1991. Mode: A particular form of transportation identified by the vehicle used, such as bus, rail, or paratransit. MOU: Memorandum of Understanding. in San Diego. MTS: Metropolitan Transit System in San Diego. Multimodal: Public transportation system which provides more than one mode of transit service; such as bus, rail, ferry, HOV, bikeway, pedestrian land use, or demand-response service. NCTD: North County Transit District. Net Assets: Net assets represent the residual interest in NCTD's assets after liabilities are deducted. In accordance with GASB Statement No. 34, the equity section on the Statement of Net Assets reports total net assets in three broad components: Invested in capital assets, restricted; and unrestricted. Net assets invested in capital assets include capital assets net of accumulated depreciation. Net assets are restricted when constraints are imposed by third parties or by law through constitutional provisions or enabling legislation. All other net assets are unrestricted. When both restricted and unrestricted resources are available for use, it is NCTD's policy to use restricted resources first and then unrestricted resources as they are needed. Non-revenue Vehicles: Vehicles that do not carry fare-paying passengers. NTP: Notice to Proceed. Object: A cost classification that refers to the type of item purchased or the service obtained. Examples include personnel, supplies, and contract services. OES: Office of Emergency Services. Operating Budget: The operating budget is the primary means by which most of the spending and service delivery activities of NCTD are controlled. A-9 Glossary cont. OTC: Oceanside Transit Center. RGEC: PE: Preliminary Engineering. The Regional Government Efficiency Commission formed by Senate Bill 329 on September 27, 2000. Its mission is to consider the options of JANTOC and/or determine another alternative and submit to the legislature by August 1, 2001, a) A plan and draft legislation for consolidation of regional agencies, b) A plan and draft legislation to improve coordination of regional agencies. Personnel: NCTD's employees. RFB: Request for Bid. Performance Objective: Relates to employee RFP: Request for Proposal. Paratransit: Paratransit refers to equivalent transportation services provided by vehicles accessible to mobility devices. PCA: Personal Care Attendant evaluations. ROW: Right-of-Way; land purchased or reserved accomplishments and objectives that were met. for a transit system's route, such as a bus lane, or a railway line. PERS: Public Employees Retirement System. RTA: Regional Transit Authority. PUC: Public Utilities Code or Commission. RTIP: Performance Results: A summary of major PVEA: Petroleum Violation Escrow Account. Revenue Estimate: A formal estimate of how much revenue will be earned from a specific revenue source for some future period, typically during a fiscal year. Revenue Vehicle: Vehicles that carry fare- Regional Transportation Improvement Program. This plan is required in order for the region to qualify for federal funding. RTMS: Regional Transit Management System SANDAG: San Diego Association of Governments. SCIRG: Southern California Inter-City Rail paying passengers. Group. Revenue Vehicle Hours: Total number of SCRRA: scheduled hours that a vehicle is in service. Excludes hours spent traveling to and from storage facilities and during other non-service travel. SDNR: San Diego Northern Railway. Revenue Vehicle Miles: Total number of miles traveled by a vehicle operating on rails or tracks, bus, van, trolley, ferry, cable car, or other vehicle used to provide public transportation for which a fare is collected. Excludes miles spent traveling to and from storage facilities and during other non-service travel. Ridership: The number of rides taken by people Southern California Regional Rail Authority. Schedule Interlining: The process of scheduling a vehicle to travel from one route to another during a service day. Service Charges: Charges for specific services rendered. Service Efficiencies: Cost savings that are generated due to more efficient scheduling of routes. using a public transportation system during a given time period A-10 NCTD FY11 Operating and Capital Budget Glossary cont. Shake Up: The process conducted three times TEA: Transportation Enhancement Activities per year in which bus routes and schedules are updated or revised, as necessary, and following public hearings. The drivers then select their work assignments from the updated services. such as bus stop shelters, transit centers, parkand-ride facilities, and pedestrian walkways. Single Audit: A requirement of agencies receiving state and federal funding in excess of $300,000. SMF: Stuart Mesa Facility. SRTP: Short Range Transit Plan. TEA-21: Transportation Equity Act for the 21st Century. Temporary Employees: Employees who work full or part-time but only for a limited period of time for the completion of a set task. These persons are not entitled to receive any benefits and do not have any job security rights. TPAC: Transit Productivity Advisory Committee. STA: State Transit Assistance Funds. TransNet - A funding source created by Program. Proposition A, the 1/2 cent sales tax enacted in November 1987. A 40-year extension of TransNet was approved by voters in November 2004. STP: Surface Transportation Program. TVM: Ticket Vending Machine. Supplemental VEDA: Vista Association. STB: Surface Transportation Board. STIP: State Transportation Improvement Appropriation: A budget appropriation approved by the Board of Directors after the initial budget is adopted. Economic Development Supplies: An expenditure classification for articles and commodities purchased for consumption or resale. Examples include office and operating supplies, fuel, power, water, gas, inventory or resale items, and small tools and equipment. TAC: Technical Advisory Committee. TCRP: Traffic Congestion Relief Program TDA: Transportation Development Act. Enacted in 1972 by the California legislature to provide a major source of funding for public transportation. These funds are generated by a 1/4% sales tax collected in each region of the state and allocated to each county based on population, taxable sales, and transit performance. TDM: Transportation Demand Management. A series of programs to encourage ridesharing to reduce air pollution and traffic congestion. A-11 This page left intentionally blank NCTD FY11 Operating and Capital Budget