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Study Session - VTA Capital Investment ProgramCOUNCIL AGENDA REPORT MEETING DATE:4/18/2005 STUDY SESSION DATE: TO: FROM: SUBJECT: DISCUSSION: APRIL 12,2005 MAYOR AND TOWN COUNCIL DEBRA 1.FIGONE,TOWN MANAGE SANTA CLARA VALLEY TRANSPORTATION AUTHORITY (VTA)- LONG-TERM TRANSIT CAPITAL INVESTMENT PROGRAM Attached,for your information,is a draft version ofVTA's Long-Term Transit Capital Investment Program.VTA staffwill be presenting the program at Monday's meeting and answer any questions that Council may have. FISCAL IMP ACT:None Attachment:Draft Version ofVTA's Long Term Transit Capital Investment Program Distribution:Carolyn Gonot,Chief Development Officer -Santa Clara Valley Transportation Authority -3331 North First Street,San Jose CA 95134-1906 PREPARED BY: P~0.~UJ~ PAMELA S.JACOBS Assistant Town Manager PSJ:pg . N:\MGR\AdminWorkFiles\cnclrpts\4-18 VTA Long Term Transit CIP.wpd Reviewed by:__._Assistant Town Manager ~TownAttomey __Clerk Administrator _------'Finance ·__Community Development Revised:4/13/05 10:15 am Reformatted:5/30/02 February 16,2005 Mayor Mike Wasserman Town of Los Gatos 110 East Main Street Los Gatos,CA 9503~ Dear May~an: Attached is the draft version ofVTA's Long-Term Transit Capital Investment Program.This program outlines VTA's plan to fund transit services and various transit capital improvements over the next thirty years.The VTA Board of Directors is circulating the document for public comment and input.. VTA recognized with the approval of the 2000 Measure A sales tax in November 2000 that another revenue stream would be necessary to operate 2000 Measure A projects as well as maintain existing operating and capital needs.A new revenue stream has become of mostcritical importance with the downturn of the economy in most recent years.Even though VTA has achieved financial stability in the near term,estimates of future sales tax revenues to fund transit capital improvements and maintain transit services have been lowered significantly. Following discussions at two workshops on October 1 and November 5,2004,the VTA Board of Directors approved a preliminary revenue and expenditure planthat included a potential additional ~-cent sales tax to begin in fiscal year 2007 for transportation purposes.This approved funding scenario,which is outlined in the Long-Term Transit Capital Investment Program,enables VTA to (1)deliver all 2000 Measure A projects,(2)maintaintransit service levels,and (3)fund necessary equipment upgrades and maintenance for VTA's transit-related assets.The funding scenario assumes that the potential new ~-cent sales tax would be divided with VTA receiving 75 percent for transit operations and improvements and the County of Santa Clara and the 15 cities receiving the remaining 25 percent for roadway maintenance and operations. The VTA Board of Directors will hold a workshop on April 22,2005 to discuss comments on the draft investment plan.I am requesting that each city and the County provide VTA staff an opportunity to meet with you and your fellow council members to receive feedback on the plan prior to our workshop in April.If you would like to receive a presentation on the plan,either during a city council meeting or at a special working session,please contact VTA's Chief Development Officer, Carolyn Gonot,at 408.321.5623 to schedule a meeting. Sincerely, ~'~ns.a rperson~i~2oard of DIrectors C:VTA Board of Directors VTA Policy Advisory Committee Member VTA Technical Advisory Committee Member 3331 North First Street·San Jose,CA 95134-1906 •Administration 408.321.5555 .Customer Service 408.321.2300 PLEASE NOTE: A COpy OF THE DRAFT VERSION OF VTA'S LONG-TERM TRANSIT CAPITAL INVESTMENT PROGRAM IS AVAILABLE FOR REVIEW FROM THE CLERK DEPARTMENT. FOR PUBLIC DR AFT REV IE AfJf{'v~i:'·T~~;r;".n Authority Part ojevery trip you take '" J Table of Contents Table of Figures iii Foreword v Chapter I:Transit Capital Investment Programs I 2000 Measure A Transit Improvement Program 1 Capital Investment Program for Ongoing Operations 2 Chapter 2:Financial Resources for Future Transit Capital Investments 5 Economic Effects on Future Transit Capital Improvement Projects 5 Federal Funding Sources 6 State Funding Sources 7 Local Funding Sources 9 Chapter 3:Transit Capital Revenue and Expenditure Plans 13 2000 Measure A Expenditure Plan 13 Funding for VTA's Capital Program to Support Operations 15 Appendices Appendix A 2000 Measure A Program Projected Revenues and Anticipated Expenditures 2000 Measure A Capital Investment Program Timeline AppendixB 2000 Measure A Program Project Fact Sheets Long-Term Transit Capital Investment Program This page was intentionally left blank. SANTA CLARA Valley Transportation Authority ii Valley Transportation Authority Table of Figures Figure 1-1:2000 Measure A Progress Report (as of January 2005)2 Figure 1-2:2000 Measure A Sales Tax Projected Revenues 9 Figure 1-3:Use of2000 Measure A Bond Proceeds 10 Figure 1-4:Summary of2000 Measure A Program Projected Revenues &Expenditures 14 Figure 1-5:Summary ofVTA Ongoing Operations Capital Program Projected Revenues &Expenditures 15 2000 Measure A Capital Investment Program Proj ected Revenues and Anticipated Expenditures Appendix A 2000 Measure A Capital Investment Program Timeline Appendix A Long-Term Transit Capital Investment Program iii This page was intentionally left blank. SANTA CLARA Valley Transportation Authority iv Valley Transportation Authority Foreword In November 2000,the voters of Santa Clara County overwhelmingly endorsed a 3D-year,Y2-cent sales tax to fund the 2000 Measure A Transit Improvement Pro- gram.The program of transit projects includes the extension of BART to Silicon Valley;light rail into the east valley;conversion ofVTA's light rail fleet to low floor vehicles;VTA service improvements;Caltrain service improvements and many other transit projects. While the 2000 Measure A Transit Improvement Program involves major capital proj ects of importance to Santa Clara County's transportation system,VTA has many other capital projects that are essential to sustaining public transit service. This document,YTA's Long-Term Transit Capital Investment Program,identifies all major transit projects and anticipated sources of revenue to fund improvements over the next 30 years.Development of a long-term plan requires a great deal of planning and input from the community,local stakeholders,and the VTA Board of Directors.This preliminary investment plan has been produced for circulation and public comment beginning February 2005. With the effects of the recent economic downturn still apparent,VTA developed a long-term funding scenario that allows all projects in 2000 Measure A to be implemented,provides for future service increases,and maintains VTA's existing and future bus and light rail fleet.The funding scenario presented in this docu- ment is based upon the premise that revenues from a new permanent ~-cent sales tax would become available in April 2007,of which 75 percent would go to VTA and 25 percent would go to the 15 cities and the County of Santa Clara for pave- ment management or other transportation-related purposes. Possible VIA Board action on adopting a Long-Term Transit Capital Investment Program is anticipated in Summer 2005. Long-Term Transit Capital Investment Program v This page was intentionally left blank. SAH1A CLARA Valley Transportation Authority vi Valley Transportation Authority Chapter I: Transit Capital Investment Programs VTA has already begun work on 2000 Measure A by issuing a limited amount of bonds to purchase 70 additional low-floor vehicles;to acquire right-of-way;and to conduct environmental studies,preliminary engineering and design work for proj ects identified in 2000 Measure A.Figure 1-1 summarizes VTA's progress on 2000 Meas- ure A projects as of January 2005. The 2000 Measure A Transit Improvement Program is one component ofVTA's long- range countywide transportation plan,Val- ley Transportation Plan (VTP)2030.VTP 2030 outlines a balanced approach to im- proving Santa Clara County's transportation system,specifically denoting planned im- provements to roadways and highways,pub- lic transit,bicycle and pedestrian facilities, and technology infrastructure.Under a separate process,VTP 2030 was reviewed by local jurisdictions and adopted by the VTA Board of Directors on February 3, 2005. VTA's Long-Term Transit Capital Invest- ment Program describes planned improve- ment projects and capital investments occurring in the next 30 years.The invest- ment program is divided into two compo- nents:(1)transit improvement projects in the 2000 Measure A Transit Program,and (2)ongoing transit capital investments nec- essary to support basic transit services. 2000 Measure A Transit Improvement Program The 2000 Measure A Transit Improvement Program,a 30-year plan of major transit im- provement capital projects,was approved in November 2000 by over 70 percent of Santa Clara County's voters.2000 Measure A listed the following countywide transit im- provement projects: •Fund operating and maintenance costs for increased bus,rail and paratransit service. •Extend BART to Silicon Valley through the Silicon Valley Rapid Transit Corri- dor (SVRTC). •Provide connections from Mineta San Jose futemational Airport to BART,Cal- train and VTA light rail. •Extend Light Rail from Downtown San Jose to the East Valley. •Purchase low-floor light rail vehicles. •Improve Caltrain:double-track to Gilroy and electrify from Palo Alto to Gilroy. •fucrease Caltrain service. •Construct aNew Palo Alto futermoda1 Transit Center. • • • • • • Improve bus service in major bus corri- dors. Upgrade Altamont Commuter Express (ACE) h~.prove Highway 17 Express bus ser- VIce. Connect Caltrain with Dumbarton Rail corridor Purchase zero-emission buses and con- struct service facilities. Develop new light rail corridors. Long-Term Transit Capital Investment Program ", Figure I-I 2000 Measure,A Progress Report (as of January 2005) ,- Project Low-Floor Light Rail Vehicles Downtown East Valley Transit Improvement Plan Silicon Valley Rapid Transit Corridor Project Dumbarton Rail Caltrain Service Upgrades Caltrain South County Service Upgrades Caltrain Electrification New Rail Corridors Study Zero-emission Bus Demonstration Progress ./Additional 70 low-floor vehicles delivered and currently in revenue service . ./Began preliminary engineering on Capitol Expressway Light Rail Project to Nieman Boulevard. ./Continued environmental clearance for Capitol Expressway and Santa Clara Street/Alum Rock Avenue corridors. ./Continued federal environmental clearance studies . ./Completed and adopted final state-level environmental clearance in December 2004. ./Started preliminary engineering and value engineering. ./Purchased critical Union Pacific right-of-way. ./Continued federal-level environmental clearance studies . ./Programmed VTA funding contribution for environmental studies and reports . ./Negotiated ability to expand five roundtrips to Gilroy. ./Programmed $45 million in Long-Term Transit Capital Investment Program for track improvements by 20 I0 for service upgrades . ./Programmed funding in Long-Term Transit Capital Investment Program to match Caltrain's Short-Range Transit Plan . ./Programmed $1.3 million in Long-Term Transit Capital Investment Program to begin study in 2005 . ./Three zero-emission buses received with in-service testing to begin in early 2005. Capital Investment Program for Ongoing Operations In addition to the 2000 Measure A projects, an on-going capital investment program is necessary to maintain and upgrade VTA's operations-related assets.Activities include fleet replacement,facility and infrastructure 2 Valley Transportation Authority upgrades and maintenance,and capital con- tributions to Caltrain and Altamont Com- muter Express (ACE)services.These ac- tivities are not included in the 2000 Measure A Transit Program.Projected revenues and expenditures for ongoing operations will be updated through VTA's internal Capital Im- provement Program Oversight Committee as part of the budget process and VTA's Short Range Transit Plan. Capital projects to support VTA operations are grouped into the following categories. Revenue Vehicles and Equipment VTA currentlyhas a fleet of 523 diese1- powered buses.Ofthese buses,433 are part of the active fleet (buses required to meet service demand)and the remaining 90 are part of the inactive fleet.At present,234 of the buses are low-floor.All future bus pur- chases will be of the low-floor design. VTA has established a replacement program based on operating buses for 15 years.As a result of this cycle,VTA will replace an av- erage of 20 to 40 buses annually,with the heaviest replacements needed after 2013. Because VTA has reduced service,the total fleet will be reduced over time by phasing- out the inactive fleet.In total,nearly 100 buses due for replacement from 2006 to 2008 will instead be retired.The phased reduction will enable VTA to reach a 20 percent spare level in 2009.A replacement farebox system will also be installed to im- prove reliability and accountability as well as allow for integration with other on-board systems including TransLink. VTA's fleet oflow-floor light rail vehicles will receive routine preventative mainte- nance to retain a high state of reliability throughout the life of the vehicles.In time, vehicles will eventually receive new HVAC components,brakes,pantographs,and other interior and exterior components. VTA has determined that the optimal point to replace non-revenue vehicles to minimize repair costs and maximize reliability is be- tween 6 and 20 years,and a minimum of 85,000 miles,depending on vehicle type and usage.A total of 264 support-type vehicle replacements are forecasted over 10 years. Operating Facilities and Equipment Included in this category are maintenance, rehabilitation and expansion projects for VTA's bus operating divisions,the overhaul and repair facility,and the Guadalupe Light Rail Maintenance Facility.VTA's operating divisions have been in operation for 15 to 20 years and will require reconstruction,recon- figuration,and expansion to accommodate VTA's needs in the next 10 years.Facilities will also be upgraded to accommodate VTA's fleet of zero-emission buses. Light Rail Way,Power and Signal Way,Power and Signal (WP&S)projects include all work associated with maintaining the backbone elements of the light rail sys- tem (exclusive of vehicles),including track, right-of-way,structures,traction power,sig- nals,and station platforms.Since many elements of the light rail system are 16 years old,VTA has now entered a phase where it is beginning to face needs for rehabilitation or replacement ofWP&S elements. The current capital program identifies sev- eral WP&S projects required to improve rail service reliability,flexibility,and safety. Projects include signal retrofits,station plat- form retrofits along the Guadalupe Light Rail corridor,substation and rail rehabilita- tion and replacement. Passenger Facilities The VTA passenger facility capital program includes bus stop improvements,light rail station improvements,construction or Long-Term Transit Capital Investment Program 3 improvement of transit centers and park & ride lots,and replacement or upgrading of transit passenger amenities such as informa- tion signs,benches,and bike lockers.Pas- senger facility projects provide a means of attracting new riders and improving service to existing riders. VTA plans to implement major upgrades along Bus Line 22,the most heavily used bus route,for future bus rapid transit ser- vice.Other passenger facility upgrades in- clude historic preservation or rehabilitation at transit centers and Caltrain facilities,in- stallation of Intelligent Transportation Sys- tems to provide real-time information,and bus stop accessibility improvements.VTA has also scheduled rehabilitation projects at the Tamien Child Care Center,including carpet and vinyl floor replacement,painting, and other repairs. Information Systems and Technology Information systems and technology projects include not only traditional computer sys- tems projects,but also new communications, operations and fare collection projects that will use electronics and software to signifi- cantly change the way VTA does business. Projects underway or planned at VTA in- 4 Valley Transportation Authority clude upgrades to the VTA Customer Ser- vice Call Center and replacement ofVTA's information technology infrastructure. Miscellaneous Administrative Projects VTA will use federal Section 5307 Transit Enhancement funds to restore the water tower on the Vasona Light Rail Project. The water tower,which was dismantled and temporarily stored during Vasona construc- tion,is a contributing structure to the Diri- don Station and is listed on the National Register of Historic Places.The tower will be restored to meet historic building code requirements for seismic and wind forces and relocated to a new site near the Diridon Station.Other projects included in this category will upgrade VTA operator facili- ties to new standards. VTA anticipates financing the 2000 Meas- ure A Program and capital investments for ongoing operations with federal,state,and local funding sources.The following sec- tion describes those funding sources and VTA's revenue estimates for the 30-year program. Chapter 2: Financial Resources for Future Transit Capital Investments In the 2002 and 2003 fiscal years,during the most recent economic recession in Silicon Valley,VTA saw its sales tax revenues de- cline almost $50 million for an unprece- dented 10 consecutive quarters.The downturn resulted in significant operating deficits,necessitating VTA to implement service reductions,fare increases and inter- nal cost-containment strategies.VTA also began to evaluate the viability of the various funding sources that would fmance future capital improvements,specifically for the 2000 Measure A transit projects. Economic Effects on Future Transit Capital Improvement Projects At the time of the November 2000 vote, revenues from 2000 Measure A were as- sumed at approximately $6 billion (in 2000 dollars)over a 30-year period.VTA antici- pates that the current economic downturn will decrease potential receipts from 2000 Measure A to approximately $4.4 billion (in 2000 dollars),or $9.9 billion when escalated to year of receipt. As a result,the VTA Board of Directors evaluated and refined VTA's long-term capital investment program during a series of workshops in August,October,and No- vember 2004.The program for transit capi- tal improvements would be designed to deliver all projects identified in the 2000 Measure A Transit Improvement Program. To ensure funding for the entire program and provide VTA with long-term financial stability for its existing system,four funding scenarios were considered. Funding Scenarios Considered for the 2000 Measure A Program Four long-term financial scenarios were evaluated: 1.No new tax or revenue stream. 2.New permanent Y4.-cent sales tax. 3.New permanent )Iz-cent sales tax. 4.New permanent )Iz-cent sales tax,but with five-year delays for the Silicon Valley Rapid Transit Corridor (SVRTC) and Downtown East Valley (DTEV) projects. Of the four scenarios,scenarios 1 and 2 did not generate sufficient revenue to complete and operate all projects in the 2000 Measure A Transit Improvement Program.The VTA Board also chose to eliminate scenario 4 from consideration.It was shown that de- laying construction for both the SVRTC and DTEV projects would result in significantly increased project costs. Long-Term Transit Capital Investment Program 5 Selected Funding Strategy Based on initial direction from the VTA Board,the long-term investment strategy has been further refIned with the following con- ditions: • A "potential new permanent liz-cent sales tax"(75 percent to VTA)is included for VTA's operating budget and 2000 Measure A Transit Improvement Pro- gram. •All sales tax projections reflect the mid- point between the Center for the Con- tinuing Study of the California Economy's (CCSCE)conservative and moderate projections,which were up- dated in July 2004. •Program expenditures and project deliv- ery timelines have been revised based on VTA Board comments to advance the Caltrain electrifIcation proj ect,consis- tent with Caltrain's Short Range Transit Plan. Revenue projections are based on the as- sumption of a new permanent liz-cent sales tax becoming available in April 2007,of which 75 percent would go to VTA and 25 percent would go to the 15 cities and the County of Santa Clara for pavement man- agement or other transportation-related pur- poses.An affIrmative action by the VTA Board to adopt this Investment Plan does not endorse or authorize placing the referenced liz-cent sales tax on the November 2006 ballot. If a new sales tax ballot measure were un- successful in November 2006,VTA would revert to scenario 1,the "No New Tax"sce- nario,which would mean that VTA may 6 Valley Transportation Authority begin to experience operating cash defIcits as early as FY 2008.Such a scenario would seriously curtail any capital program and necessitate a re-evaluation of 2000 Measure A sales tax revenues and VTA service levels required to balance future budgets. Given VTA's Long-Term Transit Capital Investment Program covers a 30-yearpe- riod,certain assumptions regarding the availability of federal,state and local fund- ing and revenue amounts were made.As- sumptions must be re-evaluated and updated on at least an annual basis to ensure that the forecasts reflect the most current economic trends and funding availability. The following sections describe each fed- eral,state,and local funding source identi- fIed to fInance the 2000 Measure A and the Ongoing Operations Capital Programs. Federal Funding Sources Federal New Starts Funding Federal Section 5309 New Starts funds of $973 million are projected for the SVRTC project.Although the Federal Transit Ad- ministration (FTA)gave the SVRTC Project a "not recommended"rating in its 2004 and 2005 Annual New Starts Reports,such ac- tion does not preclude the possibility of ob- taining federal funding for the project. Therefore,VTA will continue to submit re- quests for Section 5309 New Starts funding for the project through the annual federal appropriations process.Federal New Starts funds are received on a reimbursement ba- sis.As of November 30,2004,$4.7 million has been earmarked for SVRTC preliminary engineering,of which $246,000 has been received by VTA. Federal Funding for Transit Operations The federal funding assumptions for the FTA Section 5307 Urbanized Area Formula and the Section 5309 Fixed Guideway pro- grams are based on revenue projections pro- vided by the Metropolitan Transportation Commission (MTC)in its Transportation 2030 Plan.MTC's estimates are based on the federal FY 2004 FTA apportionments and assume a three percent growth rate.A historic review of the Section 5307 and Sec- tion 5309 apportionments from FY 1998 to FY 2003 indicates an 8.0 percent and 9.0 percent annual growth rate respectively for the program.However,due to the fact that the reauthorization bill is still being debated and the economy remains uncertain,MTC is using a more conservative growth rate of3.0 percent for this period. The FTA Section 5307 Formula program makes funds available primarily for capital projects.Preventive Maintenance is an eli- gible capital expenditure under this program. Funds awarded for Preventive Maintenance essentially function to support the mainte- nance portion of the operating budget. Prior to the economic downturn,VTA util- ized small amounts of Preventive Mainte- nance to accelerate cash flow and free up local funding to underwrite capital expendi- tures.However,between FY 2002 and FY 2005,as sales tax revenues declined and economic conditions worsened,VTA began to maximize the use of Preventive Mainte- nance as a bridging strategy to reduce oper- ating deficits.An average of $36 million was programmed annually for Preventive Maintenance over the four-year period. Beginning in FY 2006,VTA is forecasting its Preventive Maintenance program at $20 million and $25 million in FY 2007.In FY 2008,Preventive Maintenance is further re- duced to $15 million annually escalated over the 30-year period at a rate of3.5 percent per year.This will allow the VTA to resume using the majority of its Section 5307 funds for planned capital improvements. State Funding Sources Traffic Congestion Relief Program In 2000,the Traffic Congestion Relief Pro- gram (TCRP)was enacted,directing reve- nues generated by the State sales tax on gas and diesel fuel from the State General Fund to transportation.TCRP funds in the amount of $649 million are earmarked for the SVRTC project.These funding commit- ments continue to be carried in the State budget,but are currently unfunded. The FY 2005 state budget package author- ized the Department of Finance to issue bonds for transportation purposes backed by revenues generated through renegotiated gaming compacts with Native American tribes.A portion of this bond is dedicated for new allocations to the TCRP proj ects. In light of this situation,VTA has submitted an allocation request for approximately $100 million to the California Transporta- tion Commission (CTC)for preliminary en- gineering work for the SVRTC project. Additional TCRP allocation requests for the project will be submitted to the CTC in fu- ture fiscal years as the need arises,assuming sufficient appropriations for the TCRP by the California State Legislature. Long-Term Transit Capital Investment Program 7 Proposition 42 STIP The transfer of gas tax revenues from the State General fund to TCRP was to occur during FY 2004 through FY 2008 only. However,in 2002,California voters passed State Proposition 42,making the transfer permanent.A portion of Proposition 42 funding goes to the State Transportation Im- provement Program (STIP). Proposition 42 STIP funds in the amount of $147.3 million are projected for the SVRTC proj ect in addition to the TCRP allocation. Update on State Funding In January 2005,Governor Schwarzenegger released his proposed FY 2006 state budget. Relative to funding for transportation pro- jects,the Governor retained the TCRP in the budget with the following funding propos- als: •Fully suspend Proposition 42,leaving the entire $1.3 billion in the General Fund to balance the State deficit.If en- acted,this proposal would eliminate funding for a number of transportation programs in FY 2006,including $678 million in TCRP funding. •Support a constitutional amendment to prevent further taking of Proposition 42 funds out of transportation starting FY 2008.However,he has not stated whether he will propose suspension of Proposition 42 again for FY 2007. •Direct funding from the $1.5 billion in bonds backed by tribal gaming revenues to transportation projects in the budget year when and if the sale of the bonds is finalized. 8 Valley Transportation Authority As part of the FY 2005 state budget pack- age,Assembly Bill (AB)687 (Nuiiez)was enacted to ratify gaming compacts that Gov- ernor Schwarzenegger renegotiated with five Native American tribes.It also authorized the state to issue up to $1.5 billion in bonds backed by tribal gaming revenues from these compacts as a way to begin repaying the outstanding loans that have been made to the General Fund using various state transporta- tion accounts.AB 687 calls for transferring the first $1.2 billion in bond proceeds to the TCRP. Bonds were originally expected to be issued in January 2005.Recent developments, however,may jeopardize the timing of the bond issuance as well as the amount.A lawsuit has been filed by a coalition of card clubs and racetracks challenging the urgency provision contained in AB 687,which al- lowed the law to become effective immedi- ately upon the Governor's signature.The plaintiffs in the pending lawsuit contend that AB 687 grants geographic monopolies to the tribes and,therefore,violates Article IV, Section 8 (d)of the California Constitution, which prohibits the Legislature from grant- ing any special privilege or franchise in an urgency statute.According to the State Treasurer's Office,"it is highly unlikely that the bonds could be sold unless this legal challenge is resolved in the State's favor." VTA continues to draw down $45 million in previously allocated TCRP funding for on- going environmental analysis. local Funding Sources 2000 Measure A Sales Tax The 2000 Measure A 'ii-cent sales tax will be collected for a duration of 30 years,be- ginning April 2006 and ending March 2036. VTA has entered into an agreement with the State Board of Equalization to administer the collection and distribution of the 2000 Measure A sales tax revenue. Figure 1-2 provides the annual sales tax pro- jections. Figure 1-2 2000 Measure A Sales Tax Projected Revenues* anomaly years of the high-tech boom and bust when VTA saw unprecedented in- creases,then decreases,in its sales tax reve- nue.As of December 2004,the 2000 Measure A sales tax is projected to generate $4.4 billion (in 2000 dollars)or $9.9 billion (in dollars escalated to year of receipt). Sales tax proj ections are based on taxable sales projections prepared by the Chief Economist with The Center for Continuing Study of the California Economy (CCSCE). In July 2004,CCSCE completed an update of Santa Clara County taxable sales projec- tions for FY 2004 through FY 2010.The key projection determinants used by CCSCE are: *2000 Measure A Sales Tax revenue ceases in March 2036. co T""'<t r--a C'")co T""N N N C'")C'")C'")a a a a a a aN N N N N N N Fiscal Year •Volume of business-to-business sales per job. •Total population •Total income •Total jobs •Percent of income spent on taxable items The analysis uses an historical database from 1990 through 2003.The projections of jobs,population and income are developed by CCSCE using low-,middle-,and high- growth assumptions. I 700 It:~~TI------------- ~ ~400 +----------:;ol,L.--- s::: ~300 I -g 200 TI--:::;;ii'...-.~--------- 1100 J e 0 '-------------- D.COO'JNlD 8 g (;0 N N N N For FY 2007 and FY 2008,VTA assumes an annual growth rate of 4.9 percent.For FY 2009 and FY 2010,the growth rate is as- sumed at 5.0 percent.For FY 2011 through FY 2036,the growth rate is 4.75 percent per year.Assumptions are based on the 20-year historical performance ofVTA's 'ii-cent sales tax,which has grown at an annual rate of 4.78 percent per year,excluding the The wage,income and taxable sales proj ec- tions depend on ratios and trends for the en- tire 13-year historical database.The analysis was very sensitive to the problem of dealing with the recent economic cycle between 1998 and 2000. Long-Term Transit Capital Investment Program 9 sales tax ends),but with a mandatory tender on October 2,2006. Figure 1-3 Use of 2000 Measure A . Bond Proceeds The rate of interest through the mandatory tender date is fixed.The intent is that the bonds will either be remarketed or refunded on the tender date (or a combination of both).This structure was designed to pro- vide VTA with the interest benefits associ- ated with a short-term fmancing but with a framework similar to that of a long-term fi- nancing with the needed flexibility to retire a portion of the debt should other funds be- come available. Applying low-,middle-,and high-growth assumptions to the projections ofjobs,popu- lation and income,CCSCE develops a set of low (conservative),middle (moderate),and high (optimistic)projections for taxable sales.Given the uncertainty of the economy in the next few years,VTA chose to take a more conservative approach by using the midpoint between CCSCE's moderate and conservative projections of taxable sales. 2000 Measure A Bonds On August 7,2003,the VTA Board author- ized the issue of up to $550 million of2000 Measure A Sales Tax Revenue Bonds to fund:I)accelerated reimbursement of the Repayment Obligation1;2)retirement of the 2002 Grant and Bond Anticipation Notes;3) operating costs associated with deferral of service reductions;4)preliminary engineer- ing for the Silicon Valley Rapid Transit (SVRTC)project;5)capitalized interest, cost of issue,potential debt service reserve fund;and 6)other projects as determined by the Board,including preliminary engineer- ing for Downtown East Valley (DTEV) transit improvements.Figure 1-3 summa- rizes the use of 2000 Measure A bonds. As of December 9,2004 three series of bonds (2003 Series A and 2004 Series A and B Bonds)have been issued under this VTA Board authorization.Each series of bonds is structured as a long-term issue maturing April 1,2036 (when the 2000 Measure A Projects SVRTC Preliminary Engineering DTEV Conceptual Engineering DTEV Preliminary Engineering Repayment Obligation UP Right-of-way Purchase Fremont to San Jose Newhall Yard Additional Round Trips for Caltrain South County Service Dumbarton Rail Rail Corridor Study Capitalized Interest/Cost of Issue Total Allocated Bond Proceeds Bond Proceeds ($millions) $132.2 4.0 16.0 67.3 81.5 37.3 10.0 0.7 0.8 42.2 $392.0 I Reimbursement to VTA for the debt service payments VTA has made/will make on the 2001 Series A bonds until FY 2006,when collection of the 2000 Measure A sales tax begins.200 I Series A bonds in the amount of $200 million were issued for the 1996 Measure B Tasman,Capitol,and Vasona light rail extension pro- jects in exchange for 1996 Measure B sales tax revenue,which was used to advance the purchase of light rail vehicles included in 2000 Measure A. 10 Valley Transportation Authority To complete the SVRTC and DTEV projects within their optimum project delivery schedules,there will be a need to issue bonds in addition to those previously author- ized by the VTA Board.The Investment Plan currently assumes additional 2000 Measure A bonds (net proceeds)of $2.2 bil- lion,which is the maximum that can be is- sued through FY 2015 within a debt service coverage ratio (DSCR)of 1.3x (set pursuant to the terms of the 2000 Measure A Inden- ture between VTA and BNY Western Trust Company as Trustee).A 1.3x DSCR ratio means that for every $1 in sales tax revenue received,as much as $0.70 may be used to pay debt service on outstanding bonds. To meet the projected cash flow require- ments of the SVRTC and DTEVprojects,it is necessary to issue the maximum allowable amount of bonds during years of construc- tion.The Investment Plan does not contem- plate further issuance of bonds after completion of the SVRTC and DTEV projects. As the 2000 Measure A Program progresses, VTA staff will re-evaluate the need for debt financing based on cash flow requirements and will adjust the anticipated amount as appropriate.The goal is to minimize the use of bonds as much as possible. VTABonds The use of 2000 Measure A bonds with ac- ceptable coverage ratios will help to mini- mize,but not close the funding gap within the 2000 Measure A Transit Improvement Program during the years when the SVRTC and DTEV proj ects are being completed, therefore another funding source is still needed.Under the assumption that VTA is successful in obtaining voter approval for a new permanent ~-cent sales tax in Novem- ber 20062 ,the Investment Plan currently re- flects the assumption that VTA would issue 2 Assumes a new,permanent 'h-cent sales tax beginning April 2007:75 percent to VTA,25 percent to cities and county for local projects. $1.7 billion net bond proceeds for the SVRTC and DTEV projects. The debt-service coverage ratio (DSCR) assumptions differ between debt secured by and payable from the 2000 Measure A sales tax and debt secured by and payable from VTA's 1976 half-cent sales tax primarily due to the intended use of the sales tax reve- nue.While a coverage ratio of 1.3x is acceptable to rating agencies for revenue streams that are dedicated to specific pro- jects (such as the 2000 Measure A sales tax), VTA's 1976 ~-cent sales tax has a higher debt-service coverage requirement because the revenue source is dedicated for opera- tions. The indenture between VTA and U.S.Bank National Association (trustee),which gov- erns the issuance of additional bonds that are secured by VTA's 1976 ~-cent sales tax, allows VTA to issue additional bonds as long as sales tax revenue exceeds at least two times the maximum annual debt service on all outstanding senior lien bonds.How- ever,the same Indenture also requires the funding of a reserve account in the event sales tax revenue does not equal at least three times the maximum annual debt ser- vice of all outstanding senior lien bonds, which results in a reduction in the amount of net bond proceeds available for projects. To avoid having to fund a reserve and maxi- mize the amount of bond proceeds available for project expenditures,we used a 3.0x DSCR as a baseline assumption for the issu- ance of additional bonds secured by and payable from the 1976 permanent ~-cent sales tax. Long-Term Transit Capital Investment Program II VTA and Other Funds Under the assumption that VTA is success- ful in obtaining voter-approval for a new pennanent sales tax,this funding source is estimated to provide $3.3 billion ofVTA surplus funds for the completion of all 2000 Measure A projects. Funds from Other Partners Funds from Other Partners totals $1.6 billion and represents confIrmed and potential funding sources that may be available for 2000 Measure A proj ects (excluding those other fund sources categorized separately). 12 Valley Transportation Authority Interest Earnings Estimated interest earnings based on an an- nual earnings rate of 1.5 percent calculated on the average balance.Bond proceeds are not included in this calculation. Funds from VTA Local Match Locally matched funding includes revenues from the 1976 permanent Yz-cent sales tax, which funds VTA operations and a portion of capital projects. Chapter 3: Transit Capital Revenue and Expenditure Plans This chapter contains the revenue and ex- penditure plans for both the 2000 Measure A Transit Improvement Program and VTA's Ongoing Operations Capital Program. 2000 Measure A Expenditure Plan As outlined in Chapter 2:Capital Financial Resources for Future TransitInvestments, VTA has developed a funding scenario to implement all proj ects in the 2000 Measure A Transit Improvement Program.The fund- ing scenario includes a potential new per- manent 'l'2-cent sales tax,with 75 percent to fund VTA's operating budget and 2000 Measure A Transit Improvement Program. With the funding scenario selected to sup- plement the 2000 Measure A sales tax,VTA developed a revenue and expenditure plan for delivering all the projects outlined in 2000 Measure A.A summary of the plan is shown in Figure 1-4;a detailed analysis of projected revenues and anticipated expendi- tures is shown in Appendix A. Appendix A also includes a revenue and ex- penditure timeline for each proj ect in 2000 Measure A.For more information regarding each project included in 2000 Measure A, please refer to project fact sheets included in AppendixB. Long-Term Transit Capital Investment Program 13 ,, ,Figure 1-4 Summary of 2000 Measure ,A Program 'Projected 30-Year Revenue &Expenditure Plan*, Fund Source 2000 Measure A Sales Tax 2000 Measure A Bonds,net proceeds VTA Bonds,net proceeds Federal New Starts State Traffic Congestion Relief Program Proposition 42 STIP VTA,Other Funds (includes new 3/8-cent sales tax) Funds from Other Partners Interest Earnings Total Revenue Expenditures Operating Assistance Debt Service,2000 Measure A Bonds Silicon Valley Rapid Transit Corridor Project Downtown East Valley Transit Improvements Project Bus Rapid Transit Corridors Caltrain Electrification (Palo Alto to Gilroy) Caltrain Service Upgrades Caltrain South County Service Upgrade New Rail Corridors Study Mineta San Jose International Airport People Mover Highway 17 Express Bus Service Improvements Dumbarton Rail Palo Alto Intermodal Center ACE Upgrade New Rail Corridors Phase I New Rail Corridors Phase II Zero Emission Buses (Buses &Facilities) ZEB Demonstration Program Total Expenditures Revenues Less Expenditures (Contingency**) 30-Year Revenue Projections ($in millions,escalated to year of receipt) 9,882.2 2,717.2 1,670.9 973.0 648.6 147.3 3,337.9 1,610.9 0.5 $20,988.4 Estimated Project Funding ($in millions,escalated to year of expenditure) 1,824.0 5,275.7 5,319.2 655.8 62.6 903.2 195.5 191.7 1.3 541.3 2.3 299.7 550.9 38.3 407.1 2,531.3 136.4 18.5 $18,954.8 $2,033.6 *Assumes a new,permanent v,-cent sales tax beginning April 2007:75 percent to VTA,25 percent to cities and county for local transportation projects. **Approximately 10 percent contingency. 14 Valley Transportation Authority Funding for VTA's Ongoing Capital Program to Support Operations Figure 1-5 is a summary of anticipated reve- nues and expenditures to support ongoing capital investments for bus,light rail and paratransit operations. As stated in Chapter 1,the program's pro- jected revenues and expenditures will be up- dated annually through VTA's internal Capital Improvement Program Oversight Committee as part of the annual budget up- date and will feed into the biennial update of VTA's Short Range Transit Plan. Figure 1-5 Summary of VTA Ongoing Operations Capital Program Projected Revenues &Expenditures Fund Source Federal Section 5307 &5309 VTA Local Match Total Revenue Expenditures Revenue Vehicles &Equipment Operating Facilities &Equipment Light Rail Way,Power &Signal Passenger Facilities Information Systems &Technology Miscellaneous Administrative Project Total Expenditures Revenues Less Expenditures (Contingency) Revenue Projections ($in millions,escalated to year of receipt) 1,633.6 637.1 $2,270.7 Estimated Program Funding ($in millions,escalated to year of expenditure) 1,044.8 158.9 81.7 50.5 108.9 4.2 $1,449.0 $821.7 Long-Term Transit Capital Investment Program 15 This page was intentionally left blank. SANTA CLARA Valley Transportation Authority Valley Transportation Authority ~ I i Appendix A 2000 Measure A Capital Investment Program Projected Revenues and Anticipated Expenditures 2000 Measure A Capital Investment Program Timeline Long-Term Transit Capital Investment Program This page was intentionally left blank. SANTA CLARA Valley Transportation Authority Valley Transportation Authority 2000 Measure A Capital Investment Program Projected Revenues and Anticipated Expenditures Dollar amounts are in thousands,escalated,and expressed in year of receipt or expenditure 30-year Total 2000 Measure A Other Fiscal Year Notes (ending 2036)Contribution Contributions 2003 2004 2005 2006 2007 2008 2009 2010 Beginning Balance (3,746)123,086 120,886 98,595 167,376 167,320 9,198 REVENUES 2000 Measure A 1/2-cent Sales Tax (CCSCE 2004 Midpoint)(1)$9,882,181 37,216 .156,120 163,796 171,921 180,522 State TCRP funding for SVRTC Project $648,567 18,988 8,181 17,831 13,110 145,866 ,200,000 200,000 44,591 Federal New Starts funding for SVRTC Project $973,000 246 1,968 100,000 100,000 100,000 100,000 100,000 Proposition 42 STIP for SVRTC Project $147,286 17,573 18,582 VTA,Other Funding (2)$3,337,834 13,047 83,213 123,969 132,751 Funds from Other Partners for 2000 Measure A Projects (3)$1,595,705 2,064 2,749 5,725 18,863 52,025 51,140 2000 Measure A and VTA Bonds and Interest Revenue (4)$4,406,766 85,939 247,799 233,721 750 675 254,910 888,201 Total Projected Revenues .'<":."','~:".$20,991,339'j:.,II·,,',j '11$~104,927 $,,'256;226,~,268!631'$,'153;8~5,$,408,386 $\565,872 $,'?20,3~t8 ,$"~;415,787c, EXPENDITURES (Total Project Costs) Operating Assistance (at 18,457%)$1,823,954 $1,823,954 $6,869 28,815 30,232 31,731 33,319 Bond Payment and Costs $5,275,686 $5,275,686 $105,771 52,856 36,993 43,921 41,668 54,639 115,060 Silicon Valley Rapid Transit Corridor Project (5)$5,319,163 $3,550,311 $1,768,852 99,417 17,872 181,987 113,110 245,866 430,293 823,779 906,205 Downtown East Valley Transit Improvement Plan (6)$655,803 $655,803 $5,696 1,211 13,511 9,845 2,498 12,676 89,054 250,029 Bus Rapid Transit Corridors $62,557 $41,288 $21,270 1,130 16,865 18,625 Caltrain Service Upgrades (VTA Share)$195,495 $176,025 $19,470 10,000 10,000 10,000 Caltrain South County Service Upgrades $191,651 $118,074 $73,578 2,000 4,000 9,000 10,000 15,000 5,000 Caltrain Electrification $903,166 $334,561 $568,605 New Rail Corridors Study $1,300 $1,300 $500 500 300 New Rail Corridors --Phase 1 $407,081 $407,081 $ New Rail Corridors --Phase 2 $2,531,340 $2,531,340 $ Mineta San Jose International Airport People Mover $541,265 $300,402 $240,863 4,719 Highway 17 Express Bus Service Improvements $2,589 $2,589 $ Dumbarton Rail Corridor Project $299,709 $44,000 $255,709 2,477 3,299 6,725 14,194 45,692 63,040 Palo Alto Intermodal Transit Center $550,949 $137,737 $413,212 ACE Service Upgrades $38,298 $38,298 $ Zero-Emission Buses (Vehicles and Facilities)$136,351 $136,351 $4,071 Zero-Emission Bus Demostration Program $18,450 $6,019 $12,431 3,560 4,540 7,500 1,500 1,350 Revenues Less Expenditures Ending Balance (Cumulative) I Notes:" (1)Assumes a growth rate of 4.9%for FY 2007 through FY 2008;5.0%for FY 2009 through FY 2010;and 4.75%for FY 2011 through FY 2036. (2)Represents additional funding made available from VTA's projected surpluses based on the midpoint sales tax growth projections plus an assumed new 3/8-cent sales tax effective FY 2007.: (3)Represents estimated funding from federal,state or partner agencies for 2000 Measure A projects other than SVRTC and DTEV. (4)Bonds and Interest Revenue for 2000 Measure A Projects. (5)Represents the full 16.3-mile construction of the SVRTC project (BART Extension to Silicon Valley)co~pleted by September 2015, (6)DTEV projects are assumed to be the Capitol Expressway Light Rail Project to Nieman Boulevard and 'enhanced bus service in the Santa Clara Street/Alum Rock Avenue corridor.Project costs include $9.7 million for conceptual design.Completed by December 2015. A-1 2000 Measure A Capital Investment Program Projected Revenues and Anticipated Expenditures Dollar amounts are in thousands,escalated,and expressed in year of receipt or expenditure 30-year Total Fiscal Year Notes (ending 2036)2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Beginning Balance 33,542 100,595 185,857 189,276 180,731 308,331 330,776 308,~73 251,004 294,761 REVENUES 2000 Measure A 1/2-cent Sales Tax (CCSCE 2004 Midpoint)$ I (1)9,882,181 189,097 198,079 207,488 217,344 227,667 238,482 249,810 261,~75 274,105 287,125 State TCRP funding for SVRTC Project $648,567 Federal New Starts funding for SVRTC Project $973,000 100,000 100,000 100,000 100,000 70,786 Proposition 42 STIP for SVRTC Project $147,286 19,676 20,851 22,132 23,501 24,971 ,.-, VTA,Other Funding (2)$3,337,834 108,309 69,584 58,359 56,921 25,000 25,000 25,000 13,868 29,446 35,399 Funds from Other Partners for 2000 Measure A Projects (3)$1,595,705 160,315 66,339 105,381 58,198 32,583 156,605 249,026 126,194 1,614 4,860 2000 Measure A and VTA Bonds and Interest Revenue (4)$4,406,766 996,012 753,417 424,592 214,870 100,436 101,575 103,868 -Total Projected Revenues _--.-$20,991,339 il $1,573,409 $-1,208,270 $ :917,952 $"670,834 $.-481,443 $521,662:$-'627,704 :,;-401,737 $305,165 $327,384 EXPENDITURES (Total Project Costs) I Operating Assistance (at 18.457%)$1,823,954 34,902 36,559 38,296 40,115 42,021 44,017 46,107 48,?97 50,592 52,995 Bond Payment and Costs $5,275,686 150,230 155,244 162,495 169,054 176,545 189,990 198,362 198,329 198,305 198,270 Silicon Valley Rapid Transit Corridor Project (5)$5,319,163 872,551 731,677 474,815 336,853 78,234 6,504 i - 'I Downtown East Valley Transit Improvement Plan (6)$655,803 224,195 47,088 ,- Bus Rapid Transit Corridors $62,557 25,937 Caltrain Service Upgrades (VTA Share)$195,495 Caltrain South County Service Upgrades $191,651 505 1,010 3,217 9,686 Caltrain Electrification $903,166 7,873 51,754 248,750 395,148 199,640 New Rail Corridors Study $1,300 New Rail Corridors --Phase 1 $407,081 New Rail Corridors --Phase 2 $2,531,340 Mineta San Jose International Airport People Mover $541,265 31,016 149,075 236,811 119,644 Highway 17 Express Bus Service Improvements $2,589 1,268 1,321 Dumbarton Rail Corridor Project $299,709 164,282 Palo Alto Intermodal Transit Center $550,949 ACE Service Upgrades $38,298 3,700 3,820 3,953 4,092 4,246 Zero-Emission Buses (Vehicles and Facilities)$136,351 1,975 2,044 2,116 5,840 5,289 6,256 5,665 8,377 5,202 6,281 Zero-Emission Bus Demostration Program $18,450.".....• Revenues Less Expenditures $2,033,530 67,053 85,262 3,419 (8,545)127,600 22,445 (21,903)(57,869)43,757 55,906 Ending Balance (Cumulative)100,595 185,857 189,276 180,731 308,331 330,776 308,873 251,P04 294,761 350,667 I A-2 2000 Measure A Capital Investment Program Projected Revenues and Anticipated Expenditures Dollar amounts are in thousands,escalated,and expressed in year of receipt or expenditure Fiscal Year Beginning Balance REVENUES 2000 Measure A 1/2-cent Sales Tax (CCSCE 2004 Midpoint) State TCRP funding for SVRTC Project Federal New Starts funding for SVRTC Project Proposition 42 STIP for SVRTC Project VTA,Other Funding Funds from Other Partners for 2000 Measure A Projects 2000 Measure A and VTA Bonds and Interest Revenue 30-year Total Notes (ending 2036) (1)$9,882,181 $648,567 $973,000 $147,286 (2)$3,337,834 (3)$1,595,705 (4)$4,406,766 2021 350,667 300,764 42,377 10,988 2022 424,770 315,050 60,721 17,108 2023 519,647 330,015 70,988 18,137 2024 633,217 345,690 80,705 13,342 2025 745,175 362,111 99,665 8,100 2026 770,270 379,311 114,011 1,379 2027 593,048 397,328 125,862 1,427 2028 348,133 416,201 138,654 1,481 2029 287,763 435,971 163,151 1,529 2030 491,111 456,679 176,584 4,234 Total Projected Revenues ".:..',,'$_,2Q,991,339 ii $354,129 $"392;879 $',419,140 $.439;737 $'469,876 $;494,701 ,$524,617 $'55~,336 $.600,651 $'637,497 I •-~_~I.-;;:• EXPENDITURES (Total Project Costs) Operating Assistance (at 18.457%)$1,823,954 55,512 58,149 60,911 63,804 66,835 70,009 73,335 76,818 80,467 84,289 Bond Payment and Costs $5,275,686 198,229 201,218 201,204 201,211 201,206 201,201 182,357 182,~70 182,369 182,370 Silicon Valley Rapid Transit Corridor Project (5)$5,319,163 -.,----.~-,_.- Downtown East Valley Transit Improvement Plan (6)$655,803 Bus Rapid Transit Corridors $62,557 Caltrain Service Upgrades (VTA Share)$195,495 11,326 11,722 12,132 12,591 12,996 13,451 Caltrain South County Service Upgrades $191,651 21,902 34,099 36,150 26,592 13,489 Caltrain Electrification $903,166 New Rail Corridors Study $1,300 New Rail Corridors --Phase 1 $407,081 2,610 11,144 53,211 131,175 140,655 68,285 New Rail Corridors --Phase 2 $2,531,340 20,155 97,648 254,507 357,628 273,097 111,687 50,839 Mineta San Jose International Airport People Mover $541,265 Highway 17 Express Bus Service Improvements $2,589 Dumbarton Rail Corridor Project $299,709 Palo Alto Intermodal Transit Center $550,949 3,536 ACE Service Upgrades $38,298 4,383 4,536 4,695 4,873 Zero-Emission Buses (Vehicles and Facilities)$136,351 1,066 3,309 3,425 3,545 9,784 8,860 Zero-Emission Bus Demostration Program $18,450 ----Revenues-l:ess-Expenditures ---..---_.----------$2;033;530 -74,103 ---94,87'7 ---113,570 -111~958---25;095 ---(117;222)---(244~915)--(60,~70)--203,348-- -294,152-----._--- Ending Balance (Cumulative)424,770 519,647 ,633,217 745,175 770,270 593,048 348,133 287,763 491,111 785,263 , A-3 2000 Measure A Capital Investment Program Projected Revenues and Anticipated Expenditures Dollar amounts are in thousands,escalated,and expressed in year of receipt or expenditure 30-year Total Fiscal Year Notes (ending 2036)2031 2032 2033 2034 2035 2036 Beginning Balance 785,263 1,033,480 1,089,949 1,047,930 1,191,527 1,608,814 REVENUES 2000 Measure A 1/2-cent Sales Tax (CCSCE 2004 Midpoint)(1)$9,882,181 478,372 501,094 524,896 549,829 575,946 452,477 State TCRP funding for SVRTC Project $648,567 Federal New Starts funding for SVRTC Project $973,000 Proposition 42 STIP for SVRTC Project $147,286 VTA,Other Funding (2)$3,337,834 198,599 213,387 238,020 256,931 283,740 274,573 Funds from Other Partners for 2000 Measure A Projects (3)$1,595,705 12,909 55,901 135,048 144,560 73,930 1,951 2000 Measure A and VTA Bonds and Interest Revenue (4)$4,406,766 Total'ProjectedRev~nues',,>-,,<,~:":"$"'20;991,33911$'689,880 '$-,'770,382'$897,964 $951,320:$'933,616 $729,001--'"..-.-.-.,-. EXPENDITURES (Total Project Costs) Operating Assistance (at 18.457%)$1,823,954 88,293 92,487 96,880 101,482 106,302 83,514 Bond Payment and Costs $5,275,686 182,363 182,357 182,377 182,372 182,377 182,376 Silicon Valley Rapid Transit Corridor Project (5)$5,319,163 Downtown East Valley Transit Improvement Plan (6)$655,803 Bus Rapid Transit Corridors $62,557 Caltrain Service Upgrades (VTA Share)$195,495 13,922 14,449 14,914 15,436 15,976 16,580 Caltrain South County Service Upgrades $191,651 Caltrain Electrification $903,166 New Rail Corridors Study $1,300 New Rail Corridors --Phase 1 $407,081 New Rail Corridors --Phase 2 $2,531,340 131,576 342,860 454,053 309,393 109,084 18,814 Mineta San Jose International Airport People Mover $541,265 Highway 17 Express Bus Service Improvements $2,589 Dumbarton Rail Corridor Project $299,709 Palo Alto Intermodal Transit Center $550,949 15,028 72,268 177,725 190,325 92,067 ACE Service Upgrades $38,298 Zero-Emission Buses (Vehicles and Facilities)$136,351 10,481 9,492 14,034 8,715 10,523 Zero-Emission Bus Demostration Program $18,450 Revenues Less Expenditures $2,033,530 248,217 56,469 (42,019)143,597 417,287 427,717 Ending Balance (Cumulative)1,033,480 1,089,949 1,047,930 1,191,527 1,608,814 2,036,531 A-4 2000 Measure A Capital Investment Program Program Timeline 2 o 3 6 2 o 3 5 ~I ~I ~ 3 3 3 2 3 4 i IIII I IIIi I ' IIII II I I i I 111,11I1111--11 I 'I I I I !I ,I I~.~I ·1 I I I I I 11I1111I I I I I 2 o 2 9 I. ~I ~~: 2 i:2 2 I 2 5 I 6 7 i 8 II I I I 11I1111 '11I1 •• I I I I 1 I 111111 i'I 1 I III 1I1111! I I I I 111111 I I I I I III I 2 o 2 4 2 2 2 000 2 2 1 2 I 111111 I I I 2 o 2 o 2 o 1 9 2 o 1 8 11'11IIiI 1111I II I ,111111 I I I I 111111 I I I I 2 o 1 5 2 o 1 4 222 000 111 1 2 3 I I I I 111111III III· I III! I I I 2 o 1 o 2 o o 9 2 o o 8 2 o o 7 2 o o 6 2 o o 5 2 o o 4 2 o o 3 End Year 2036 2036 2016 2012 2011 2036 2025 2018 2007 2028 2036 2014 2012 2011 2035 2024 2007 2019 Start Year 2006 2004 2003 2003 2007 2005 2005 2014 2005 2023 2024 2010 2011 2005 2030 2016 2003 2010 Operating Assistance (at 18.457%) Bond Payment and Costs Silicon Valley Rapid Transit Corridor Project Downtown East Valley Transit Improvement Plan Bus Rapid Transit Corridors Caltrain Service Upgrades (VTA Share) Caltrain South County Service Upgrades Caltrain Electrification Fiscal Year Downtown East Valley Transit Improvement Plan New Rail Corridors:Phase 1 Palo Alto Intermodal Transit Center New Rail Corridors:Phase 2 Mineta San Jose International Airport People Mover Highway 17 Express Bus Service Improvements Dumbarton Rail Corridor ACE Service Upgrades Zero-Emission Bus Demostratlon Program Zero-Emission Buses (vehicles and facilities) Assumptions: (1)Represents additional funding made available from VTA's projected surpluses based on the midpoint sales tax growth projections plus an assumed new 3/B-cent sales tax effective FY 2007. (2)Bus Rapid Transit Corridors selected for development are Bus Line 22,Monterey Highway,and Stevens Creek Boulevard.. (3)Caltrain Electrification project schedule consistent with Caltrain's Short-Range Transit Plan. A-5 Appendix B 2000 Measure A Program Project Fact Sheets Long-Term Transit Capital Investment Program This page was intentionally left blank. SANTA CLARA Valley Transportation Authority Valley Transportation Authority Operating Assistance Estimated Project Funding (in Year of Expenditure Dollars): Funding Source Amount Local (2000 Measure A)$1.8 billion Total $1.8 billion VTA Board of Directors'Actions:II No action necessary. .~~ Project Description: VTA has allocated 18.5 percent of2000 Measure A sales tax revenues to public transit operations. Project Schedule: Funding for VTA operating assistance will begin in FY 2006 and continue until the 2000 Measure A sales tax sun- sets inFY 2036. Long-Term Transit Capital Investment Program B-1 Silicon"Yalley Rapid Transit ·C·orridor (SYRTC)Project Estimated Project Funding (in Year of Expenditure Dollars): Funding Source Amount Federal (New Starts)$973 million State (TCRP &Other)$796 million Local (2000 Measure A)$3.55 billion Total $5.3 billion VTA Board of Directors'Actions: ..r Authorized $170 million in 2000 Measure A bond pro- ceeds to begin preliminary engineering.(August 2003) -/Adopted the project description for the 16.3-mile exten- sion of BART to Milpitas,San Jose and Santa Clara and approved the Final Environmental Impact Report. (December 2004) Project Description: Extension of the San Francisco Bay Area Rapid Transit (BART)system that includes: •16.3-mile rapid transit extension south from a future Warm Springs station in Fremont through Milpitas and San Jose to the Santa Clara Caltrain Station. •Seven stations,and one possible future station (located in Milpitas). •Intermodal connections at Montague/Capitol,Alum Rock,Diridon and Santa Clara stations. •Connection at Santa Clara station to Mineta San Jose International Airport People Mover system. Project Development and Status: In March 2001,VTA initiated a Major Investment Study to evaluate transportation alternatives for the Silicon Val- ley Rapid Transit Corridor (SVRTC).Through extensive analysis and public outreach,the BART extension to Milpitas,San Jose and Santa Clara was selected as the Preferred Investment Strategy and approved by the VTA Board of Directors in November 2001.The Federal Transit Administration approved entry into preliminary engi- neering in September 2002. VTA initiated environmental clearance of the project in February 2002.Working closely with numerous agencies, stakeholders,interest groups,and the public,this process defined key issues for the environmental document,ana- lyzed potential project alternatives,and proposed possible mitigation measures to reduce impacts.The VTA Board of Directors certified the state-level Environmental Impact Report (EIR)on December 9,2004.The federal-level Environmental Impact Statement (EIS)is scheduled to be approved in December 2006. The Bay Area Rapid Transit District (BART)is concurrently working on implementing the BART Warm Springs Extension to south Fremont.BART updated the Warm Springs EIR in 2003.The BART Board of Directors certi- fied the Final Supplemental EIR in June 2003.In 2004,BART initiated preparation of a federal EIS for the project, so the project may become eligible for federal funding.The Draft EIS is scheduled for release in early 2005. Project Schedule: Mt<f)Y'~~ljJ Environmental/Preliminary Engineering .,/8#Final Design Construction ~_._.._ 2005 2006 2007 2008 20[0 Revenue Service ... 2015 B-2 Valley Transportation Authority Downtown East Valley (DTEV)Transit Improvement Plan Estimated Project Funding (in Year of Expenditure Dollars): Funding Source Amount Local (2000 Measure A)$655 million Total $655 million Capitol Expressway LRT to Nieman Boulevard:$430 million Santa Clara/Alum Rock Corridor:$85 million (for enhanced bus)to $298 million (for single-car LRT). YTA Board of Directors'Actions: ../Authorized $16 million to begin preliminary engi- neering studies for the Capitol Expressway LRT pro- ject to Nieman Boulevard.(August 2003) Project Description: Capitol Expressway Light Rail Project: 8.0 miles ofLRT along Capitol Expressway from the existing Capitol LRT to the Guadalupe LRT. Santa Clara/Alum Rock Corridor Project 4.3 miles of single-car LRT or enhanced bus service from Downtown San Jose to the existing Capitol LRT. Project Development and Status: Capitol Expressway Light Rail Project As a result of public and interagency comments on the Draft Environmental Impact Statement/Environmental Im- pact Report (EIS/EIR),the project segment from Neiman Boulevard to State Route 87 is being deferred.Therefore, the final EIS/EIR will include only the segment of the project from the Alum Rock State to Nieman Boulevard.Ap- proval of the Final EIS/EIR is expected in Spring 2005.Preliminary engineering began in October 2004 is expected to be completed in December 2005. Santa Clara/Alum Rock Corridor Project Conceptual engineering and environmental analysis are underway and are expected to be completed in 2005.The preferred alternative for the corridor is not yet determined.A Draft EIS/EIR will be circulated without a defmed preferred alternative.The VTA Board will decide between two proposed transit modes (single-car LRT or enhanced bus)along the Santa Clara!Alum Rock Corridor. The Santa Clara!Alum Rock and the Silicon Valley Rapid Transit Corridor Proj ects must be coordinated to achieve projects that complement each other in terms of design,construction,and operation.If the single-car LRT alterna- tive is selected as the preferred alternative by the VTA Board,it has been determined that construction of BART stations must be completed prior to or in conjunction with construction of the trackway in the Santa Clara!Alum Rock corridor. Project Schedule: ~Environmental/Preliminary Engineering ~_Final Design CCCCC110t~~.lfjli•••••••Construction ....Revenue Service 2005 2006 2007 2008 2009 2010 Long-Term Transit Capital Investment Program B-3 Bus Rapid Transit (BRT)Corridors Estimated Project Funding (in Year of Expenditure Dollars): Funding Source Amount Local (2000 Measure A)$62.6 million Total $62.6 million VTA Board of Directors'Actions: No action necessary. Project Description: Bus Rapid Transit (BRT)provides high quality,frequent bus service. •Articulated buses,transit priority treatments (e.g.:signal priority),Intelligent Transportation System improve- ments,and passenger facilities upgrades. •Study and implement BRT corridors on important travel corridors. BRT projects can be implemented in phases as funding becomes available;project benefits are realized at each phase. Project Development and Status: El Camino Real/The Alameda/Santa Clara Street/Alum Rock Avenue (VTA Bus Line 22),Stevens Creek Boulevard (VTA Bus Line 23)and Monterey Highway (in conjunction with the Downtown East Valley Transit Improvement Project)are corridors currently identified. VTA is developing Line 522 service,a precursor to BRT service along the current VTA Bus Line 22.Phase one improvements include bus signal priority,limited stops,frequent service,headway-based schedules,queue-jump lanes,and near level-boarding.Service is anticipated to begin in July 2005. The Monterey Highway BRT Corridor is 9.6 miles along Monterey Highway from Downtown San Jose to the Gua- dalupe LRT.To achieve both cost efficiency and consistency among VTA services,the Monterey Highway BRT project is envisioned to incorporate design and operational features currently under development for VTA's Line 22 Corridor BRT project. Design efforts are underway for the Line 22 Corridor.Low floor,articulated buses have been acquired for Bus Line 22 and will be placed in service this summer.The initial Bus Line 22 phase (palo Alto and Mountain View),with signal priority and queue jump lanes,began in 2003. Specific project improvements must be further defined,cost estimates developed and priorities established. Support from cities and Caltrans is necessary to ensure effective priority treatment for transit. Project Schedule: A more specific project schedule will be created when project improvements are defined.Cunently,funding for BRT upgrades is scheduled for FY 2007 through FY 2009 and FY 2011. B-4 Valley Transportation Authority Caltrain Service Upgrades Estimated Project Funding (in Year of Expenditure Dollars): Funding Source Amount Local (2000 Measure A)$176 million Other Funding*$19 million Total $195 million *Other fimding includes federal grants and matching fimds from Caltrain partners. YTA Board of Directors'Actions: No action necessary. Project Description: Provides VTA's share of costs to increase Caltrain Service in Santa Clara County from Gilroy to Palo Alto. Improvements may include: •Purchasing new train sets (locomotives and cars)for increased Caltrain service in Santa Clara County from Gilroy to Palo Alto. •Constructing additional facilities,such as station and access facilities,to support increased service. •Constructing a parking expansion at Mountain View Station and improvements atDiridon Station. Project Development and Status: VTA will commence a study in mid-2005 to refme the Caltrain elements of the 2000 Measure A Revenue and Ex- penditure Plan.VTA will work with Caltrain staff and the cities along the Caltrain route to develop this plan. Funding commitments will need to be secured from the San Mateo County Transit District (SamTrans)and the City and County of San Francisco to cover their share of system-wide capital proj ect costs where appropriate. Project Schedule: A more specific project schedule will be created when project improvements are defined.Funding for Caltrain Service Upgrades is scheduled for FY 2005,FY 2008,FY 2010,and FY 2025 through FY 2036. Long-Term Transit Capital Investment Program B-S Caltrain South County Service Upgrades , Estimated Project Funding (in Year of Expenditure Dollars): Funding Source Amount Local (2000 Measure A)$118 million Other Local Sources $74 million Total $192 million YTA Board of Directors'Actions: ,/Negotiated agreement with Union Pacific Railroad (UPRR)granting up to five additional commuter roundtrips on completion of the capacity improve- ments in five years.(December 2004) Project Description: Current Gilroy Caltrain service consists of four daily roundtrip trains servicing the peak period only.This service operates over a section of track owned by the Union Pacific Railroad (UPRR)and is currently constrained by the trackage rights agreement with UPRR. Various projects are proposed to improve and increase Caltrain service,including: •Constructing capacity improvements including 8.5 miles of double track between San Jose and Gilroy on Union Pacific Railroad (UPRR)property.An Agreement was executed with UPRR granting up to 5 additional com- muter roundtrips on completion of the capacity improvements. •Constructing a Gilroy yard facility to accommodate storage of 10 commuter rail train sets. Project Development and Status: VTA is working with UPRR to define scope,schedule,roles and responsibilities for the proposed $35 million in capacity improvements.The capital improvements to support this new service have been negotiated with UPRR through a revised Caltrain trackage agreement. VTA is also working with a design consultant to commence design improvements at five public grade crossings. Project Schedule: Construction 2005 2006 2007 2008 2009 2010 B-6 Valley Transportation Authority Caltrain Electrification Estimated Project Funding (in Year of Expenditure Dollars): Funding Source Amount Local (2000 Measure A)$335 million Other Local Sources $563 million Total $903 million YTA Board of Directors'Actions: No action necessary. Project Description: This project would provide for VTA's portion of the funding to electrify the existing Caltrain system from San Fran- cisco to Gilroy and includes all operating control systems,substations,track,signals,grade crossings,terminal or station modifications and new electric locomotives. Project Development and Status: Funding for VTA's share of the costs for preliminary engineering has been allocated by the Metropolitan Transpor- tation Commission (MTC)from Revenue Aligned Budget Authority (RABA)funds previously earmarked for South County Caltrain improvements. Caltrain's current Short-Range Transit Plan shows electrification construction and acquisition of electric locomo- tives,at a cost of $602 million,in Fiscal Years 2014 to 2018.A funding plan has not yet been developed or ap- proved by the Caltrain member agencies. Funding commitments will need to be secured from the San Mateo County Transit District (SamTrans)and the City and County of San Francisco and the MTC to cover their share of the project costs. Caltrain has prepared and circulated a draft environmental assessment for electrifying Caltrain from Gilroy to San Francisco.Caltrain is in the process of responding to comments received and preparing a final Environmental Im- pact Report,which is expected to be completed mid 2005. Project Schedule: A more specific project schedule will be created when project improvements are defmed.Funding for Caltrain Elec- trification is scheduled for FY 2014 through FY 2018. Long-Term Transit Capital Investment Program B-7 New Rail Corridors Study . Estimated Project Funding (in Year of Expenditure Dollars): Funding Source Amount Local (2000 Measure A)$1.3 million Total $1.3 million VTA Board of Directors'Actions: No action necessary. Project Description: VTA will conunence the New Rail Corridors Study with the following candidate corridors: •Sunnyvale/Cupertino; •East Valley Extension to Guadalupe LRT; •Santa Teresa/Coyote Valley and potential extension south to Morgan Hill; •Stevens Creek Boulevard; •West San Jose/Santa Clara; •North County/Palo Alto; •Vasona LRT to Vasona Junction. Project Development and Status: Three potential candidate corridors have undergone varying levels of study: •Vasona LRT to Vasona Junction project has proceeded through conceptual engineering and enviromnental approval. •Downtown East Valley Extension on Capitol Expressway is currently in the preliminary engineering and envi- ronmental review phases.See the project page for the Downtown East Valley Transit Improvement Plan for more information about the Capitol Expressway Light Rail Project. •Sunnyvale/Cupertino corridor has undergone an alignment study to Sunnyvale. The Sunnyvale/Cupertino,Santa Teresa/Coyote Valley,Stevens Creek Boulevard,West San Jose/Santa Clara,and North County/Palo Alto corridors have had no study to date.Therefore,adequate information does not cun-ently exist that would allow direct comparison of candidate corridors. Each candidate corridor would need to be developed to a conceptual level,after which a broad brush,order-of- magnitude evaluation could be completed to establish corridor priorities qualified for detailed study.At its June 8, 2001 workshop,the VTA Board of Directors adopted a set of prioritization criteria to aid in the selection process. After priorities have been established,individual projects could then be further developed through completion of a Major Investment Study,Conceptual Engineering,Environmental,Preliminary Engineering,Final Design,Right-of- Way Acquisition and Construction,which typically takes a period of approximately 7 to 10 years.No funding has been identified to initiate the MIS work for these projects prior to 2000 Measure A funding becoming available. Project Schedule: The New Rail Corridors Study will begin in mid-200S with anticipated completion in 2006. B-8 Valley Transportation Authority New Rail Corridors:Phases I &2 Estimated Project Funding (in Year of Expenditure Dollars): Funding Source Amount Local (2000 Measure A)$407 million (phase 1) Local (2000 Measure A)$2.53 billion (phase 2) Total $2.94 billion VTA Board of Directors'Actions: No action necessary. Project Description: Provides funding for design and construction of at least two future rail corridors.Candidate corridors are as follows: •Sunnyvale/Cupertino; •East Valley Extension to Guadalupe LRT; •Santa Teresa/Coyote Valley and potential extension south to Morgan Hill; •Stevens Creek Boulevard; •West San Jose/Santa Clara; •North County/Palo Alto; •Vasona LRT to Vasona Junction. Project Development and Status: Following the completion of the New Rail Corridor Study in 2006,at least two of the seven corridors will be se- lected for further development and construction. Project Schedule: Project schedules for selected rail corridors will be developed following initial scoping and analysis. 2036202320242006 :&'New Rail Corridor Study Rail ~:~r~::i::~:hl~e;~::::~~ent C~~",~~jl~~i ~~~,~?,~(;gjii,;'~;_I.'Ii . .....Phase I Revenue Service Phase 2Revenue Service 20282005 Long-Term Transit Capital Investment Program B-9 , BART and LRT Connections to Mineta ,~an Jose International Airport (Airport People Mover) Estimated Project Funding (in Year of Expenditure Dollars): Funding Source Amount Local (2000 Measure A)$300 million Other Local Sources $241 million Total $541 million VTA Board of Directors'Actions: No action necessary. Project Description: Provides a link to Norman Y.Mineta San Jose International Airport from VTA's Guadalupe Light Rail Transit (LRT)Line on North First Street in San Jose,and from Caltrain and future BART in Santa Clara,using Automated People Mover (APM)technology. •Connection to the LRT will likely be at the Metro Station. •COllilection to Caltrain and future BART is anticipated along the Airport's northern perimeter road as an exten- sion of the on-Airport APM,either between the centralized terminal and long term parking garage or in a tunnel under the existing Airport runways. •It is anticipated that the Airport will operate and maintain the APM system Project Development and Status: The City of San Jose designated the Metro Station corridor as the preferred corridor for an APM connection between a centralized airport terminal and the Guadalupe Light Rail Line.The City is currently proceeding with detailed alignment studies,conceptual design and environmental review for the APM connection to Light Rail. Connection with Light Rail likely requires relocation of the northbound Metro Light Rail Station platform. The connection between San Jose International Airport and CaltrainlBART in Santa Clara would likely be devel- oped in conjunction with the Silicon Valley Rapid Transit Corridor Project. Project Schedule: A specific project schedule will be developed as project elements are further defined.Funding for design and con- struction of the Airport People Mover project is scheduled for FY 2010 through FY 2014. B-IO Valley Transportation Authority Highway 17 Express Bus Service Improvements Estimated Project Funding (in Year of Expenditure Dollars): Funding Source Amount Local (2000 Measure A)$2.6 million Total $2.6 million VTA Board of Directors'Actions: No action necessary. -_._-----_._-- Project Description: Increase bus service between Santa Clara County and Santa Cruz County over Highway 17.Provides VTA's share of funds for the partnership with Santa Cruz County Transit District for additional buses and service upgrades for the Highway 17 Express Bus Service. Project Development and Status: A plan for additional buses and service upgrades must be developed. Funding commitment needs to be secured from the Santa Cruz Metropolitan Transit District. Service will be implemented when ridership justifies increased service and operating funds are available. Project Schedule: A specific project schedule will be developed as project elements are further defined.Funding for improvements to Highway 17 Express Bus Service is scheduled for FY 2011 through FY 2012. Long-Term Transit Capital Investment Program B-II Dumbarton Rail Corri~or Project Estimated Project Funding (in Year of Expenditure Dollars): Funding Source Amount Local (2000 Measure A)$44 million Other Local Sources*$255 million Total $299 million *Funding is based on Dumbarton Rail Capital Program. VTA Board of Directors'Actions: .,(Approved $1 million to contribute toward envi-. ronmental studies for the Dumbarton Rail Corridor in a cost-sharing agreement with Alameda and San Mateo Counties.(August 2004) Project Description: Proj ect represents VTA's share of matching funds for a partnership with Alameda and San Mateo counties for the rebuilding of the Dumbarton Rail Corridor.The Dumbarton Rail Corridor Proj ect will extend commuter rail service across the San Francisco Bay between the Peninsula and the East Bay by rehabilitating and reconstructing rail facili- ties on the existing railroad alignment and right-of-way.Service will consist of six trains originating in the East Bay and traveling west in the morning peak and six trains returning in the evening peak. Project Development and Status: The lead project sponsor and implementing agency is the San Mateo County Transportation Authority,who is pre- paring the required environmental studies.The other funding partners are VTA,the Alameda County Congestion Management Agency,the Alameda County Transportation Improvement Authority,and the Capitol Corridor Joint Powers Authority. The project is in the preliminary planning stages to form strategies for the environmental,design,right-of-way ac- quisition and construction stages of the project.The initial planning,engineering,and environmental studies are documented in a recently completed Project Study Report. As part of the Project Study Report,a preliminary environmental analysis was prepared to identify environmentally sensitive resource areas,and issues at an early conceptual stage of the Dumbarton Rail Project.The report also in- cluded conceptual design for track,structures,grade separations and signals for the proposed project up to a 10 per- cent engineering level of design.The next step in the study process will be to conduct the appropriate environmental studies and documentation,including preliminary engineering of the design elements. Project Schedule: ~W~·."·e-~"§;i!5AI~"i;JI;;;;iEn~v~ir~on~m~e~n~ta~I/P~r~eliim~in;a~ry~E~n~gi~ne~e~ri~ng;~;;••••••••••E ;j(~ll ~i~h~-,~;~;_;n/Final Design Construction .A.East Bay Segment Service .A.Dumbarton Bridge Service 2005 2006 2007 2008 2009 2010 B-12 Valley Transportation Authority Palo Alto Intermodal Transit Center Estimated Project Funding (in Year of Expenditure Dollars): Funding Source Amount Local (2000 Measure A)$48 million Other Local Sources $202 million Total $250 million VTA Board of Directors'Actions: No action necessary. Project Description: Project is to develop an expanded Palo Alto Caltrain Station and Bus Transit Center,along with an upgraded Uni- versity Avenue between downtown Palo Alto and Stanford University.This is part of an overall master plan effort by the city to improve transit,vehicular,pedestrian and bicycle traffic in this area and provide better connectivity between downtown Palo Alto and Stanford University.Project elements under consideration include: •Expansion of the Transit Center,to include additional bus bays,provisions for shuttles and other improvements •Reconstruction of the Caltrain bridge over University Avenue to include four tracks to allow express train service •Redesign of University Avenue including roadway improvements and creation of an urban park. Project Development and Status: Caltrain and VTA will work with Palo Alto and Stanford to fmalize specific project elements and identify additional funds needed to complete.If fully funded,implementation could take up to 10 years and would probably be com- pleted in several phases.Some elements of this project are not transportation-related and will require identification of other,non-transportation funding.VTA has agreed to pay a proportionate funding share (for example,20 per- cent)as other funds are realized. In January 2004,Congress awarded $750,000 under the Department of Transportation's budget for necessary engi- neering design prior to construction of the Palo Alto Intermodal Transit Center.This is the second year Congress earmarked funds for this project.The first earmark will fund environmental analysis preliminary to engineering design. Project Schedule: A specific project schedule will be developed as project elements are further defined.Funding for improvements to the Palo Alto Intermodal Transit Center is scheduled for FY 2030 through FY 2035. Long-Term Transit Capital Investment Program B-13 Altamont Commuter Express (ACE)Service Upgrades Estimated Project Funding (in Year of Expenditure Dollars): Funding Source Amount 1 Local (2000 Measure A)$38 million Total $38 million VTA Board of Directors'Actions: No action necessary. Project Description: Provide funds for VTA's share of additional train sets,passenger facilities and service upgrades for the ACE Com- muter Service from San Joaquin and Alameda Counties. Project Development and Status: VTA is working with San Joaquin Regional Rail Commission staff to identify short-and long-term capital projects for ACE service. Project Schedule: A specific project schedule will be developed as project elements are further defined.Funding for ACE Service Upgrades is scheduled for FY 2016 through FY 2024. B-14 Valley Transportation Authority Zero-Emission Bus (ZEB)Program Estimated Project Funding (in Year of Expenditure Dollars): Funding Source Amount Federal (FTA)$5 million State $0.3 million Local (2000 Measure A)$142 million* Other Local Sources $7 million** Total $154 million *$13 6 million for ZEB vehicle purchase and construction of the hydrogen fueling facility;$6 million for ZEB Demonstration Program. **Other local funding includes $6 million from the San Mateo County Transit District and $1 million from the Bay Area Air Quality Management District. VTA Board of Directors'Actions: .,/Adopted low-emission diesel path and to demonstrate ZEBs to comply with CARB regulations.(December 2000) Project Description: Replace 15 percent of the existing VTA active diesel bus fleet with new zero emission buses (as required for com- pliance with CARB regulations).This project also provides funds for maintenance facilities for the expanded fleet and CARB compliance.All new buses will be low floor for easier boarding by seniors and the disabled. Project Development and Status: VTA acquired three ZEBs in mid 2004.Revenue service for the ZEB demonstration program is expected to begin in February 2005. The hydrogen fueling facility at Cerone Operating Division is complete and the fueling facility is in use. The National Renewable Energy Laboratory will be leading the ZEB Demonstration Program evaluation.The evaluation will include analysis of vehicle operation,facility operating and capital costs,the implementation experi- ence,and community acceptance.The evaluation will continue for 12 to 18 months after the start of revenue ser- VIce. An interim ZEB Demonstration Program report will be submitted to the California Air Resources Board on July 31, 2005 and a [mal report will be submitted on July 31,2007.2000 Measure A funding for the demonstration program would supplement federal funds,which will continue to be available for bus replacement needs,but are not adequate for fleet expansion and full compliance with California Air Resources Board (CARB)regulations. Project Schedule 203620262020201520072010 ;)ZEB Demonstration Program '------""--===:::J:l"'~i~~I;•••••Fleet Procurement IC====:2i!bt"i'~ijlc•••••••Fleet Replacement 20302005 Long-Term Transit Capital Investment Program B-15 This page was intentionally left blank. SANTA CLARA Valley Transportation Authority B-16 Valley Transportation Authority I