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Agenda Item # 9

BOARD MEMORANDUM

BACKGROUND: 

As a transit operator, VTA prepares the Short Range Transit Plan (SRTP) every two years as required by the Metropolitan Transportation Commission (MTC) and the Federal Transit Administration (FTA).  The SRTP for Fiscal Years 2006–2015 presents a 10-year overview of transit services, plans and programs for VTA.  The SRTP is used as documentation to support projects included in the Regional Transportation Plan (RTP) prepared by MTC.  In addition, the SRTP is supported by the county’s long-range transportation plan, Valley Transportation Plan (VTP) 2030 adopted by the VTA Board of Directors in February 2005.

MTC uses the SRTP to develop regional transit capital programming documents that form the basis for federal and state funding programs.  Both the Federal Transit Administration (FTA) and MTC use the SRTP as the detailed planning justification required for awarding operating and capital grants to VTA, as represented in the Transportation Improvements Program (TIP).

DISCUSSION: 

The FY 2006-2015 SRTP is organized into five chapters as shown below:

Chapter 1:  Overview of the VTA Transit System

Chapter 2:  Goals, Objectives, Service Standards and System Evaluation

Chapter 3:  Operations Plan

Chapter 4:  Capital Improvement Program

Chapter 5:  Other Requirements

The SRTP not only presents an estimate of VTA’s performance and budget condition, but also evaluates recent trends in service delivery and financial stability.  In recent years, VTA has struggled to regain ridership and revenue levels achieved in the economic boom years of 1999 and 2000.  However, several efforts implemented over the past five years have resulted in greater financial stability for VTA.  One such effort was the VTA Board’s adoption of the recommendations of an Ad-Hoc Financial Stability Committee in 2003.  In addition, the VTA Board adopted a Service Management Plan at the end of 2003 that led to greater efficiency in the delivery of Light Rail and Bus services.  Finally, the Financial Stability Strategy adopted by the Board in 2004 established a series of near-term, mid-term and long-term strategies aimed at the creation of new revenue sources.

The comprehensive approach to achieving financial stability was recognized in a recent audit of VTA by the MTC, which focused on areas of continued improvement.  One such area is transit system operating performance.  In fact, VTA met or exceeded over one-half of the goals established to evaluate service delivery and financial performance.  The farebox recovery ratio has improved from 11.8 percent in FY 2003 to 13.8 percent in FY 2005.  This has been attributed to higher light rail ridership and decreases in system operating expenditures.  During the latter part of 2004, light rail ridership began an upward trend, increasing 24 percent in FY 2005.

While these are all indicators of progress, the VTA Board is currently evaluating a funding scenario that uses supplemental revenue source generated from a potential additional ¼-cent sales tax.   The results of this separate process will result in the VTA Board’s consideration of an expenditure plan prioritizing transit development projects over the 30-year life of the 2000 Measure A Transit Improvement Program. 

To comply with MTC and FTA requirements, the financial plan in the SRTP presents VTA’s known financial condition.  It reflects current VTA Board policy and budgetary decisions, as set forth in VTP 2030 and other policy documents.  It should be recognized that key decisions are forthcoming from the VTA Board over the next several months that could modify the financial plan included in the SRTP.

It is anticipated that the SRTP will be presented for VTA Board approval in December 2005.  Final versions of the document will be distributed in January 2006 and will also be available on VTA’s website.

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