SANTA CLARA
VALLEY TRANSPORTATION AUTHORITY
(V T A)
RECOMMENDED BUDGET
FISCAL YEARS
JULY 1, 2003 through JUNE 30, 2004 AND JULY 1, 2004 through JUNE 30, 2005

2003 Board of Director:
Jane P. Kennedy, Chairperson of V T A Board of Directors, Council Member of City of Campbell
Don Gage, Vice-Chairperson of V T A Board of Directors, Supervisor of Santa Clara County Board of Supervisors
Blanca Alvarado, Chairperson of Santa Clara County Board of Supervisors
Cindy Chavez, Council Member of City of San Jose
David Cortese, Council Member of City of San Jose
Pat Dando, Vice Mayor of City of San Jose
Ron Gonzales, Mayor of City of San Jose
John McLemore, Council Member of City of Santa Clara
Dena Mossar, Mayor of City of Palo Alto
Thomas Springer, Mayor of City of Gilroy
Manuel Valerio, Council Member of City of Sunnyvale
Forrest Williams, Council Member of City of San Jose

Board Member Alternates:
Patricia Dixon, Vice Mayor of City of Milpitas
Francis La Poll, Council Member of City of Los Altos
Pete McHugh, Supervisor of Santa Clara County Board of Supervisors
Joe Pirzynski, Council Member of Town of Los Gatos
Ken Yeager, Council Member of City of San Jose

Ex-Officio
James Beall, Junior, Chairperson, Metropolitan Transportation Commission (M T C)

General Manager, Peter M. Cipolla
General Counsel, Suzanne Gifford
Board Secretary, Sandra Weymouth
Chief Administrative Officer, Kaye L. Evleth
Chief Construction Officer, Jack Collins
Chief Development Officer, Michael P. Evanhoe
Chief Financial Officer, Scott Buhrer
Chief Operating Officer, Frank T. Martin
Controller, Jerry Rosenquist

Budget Department: 
Victor Chan 
Liza Chuapoco
Christine Huynh
Pauline Man
Jim McCutchen
Linda Schwartz

TABLE OF CONTENTS
General Manager's Budget Message
1. Introduction
Budget Resolution
Executive Summary
Vision, Mission, and Strategic Plan
Current Operations

2. Operating Budget
Operating Budget
Major Budget Assumptions and Explanations

3. Division Budgets
Fiscal Year 2002-03 Accomplishments & Fiscal Year 2003-04 Goals
Office of the General Manager
Office of the General Counsel
Operations Administration
Operations Transportation
Operations Maintenance
Administrative Services
Construction
Development & Congestion Management: Congestion Management Program and Highway Project
Development & Congestion Management: Development & Administration 
Development & Congestion Management: Planning & Development and Marketing & Customer Services
Fiscal Resources
Other

4. Capital Budget
Introduction
Capital Budget Schedule
Major New and Augmented Capital Projects 
1996 Measure B Transportation Improvement Program
2000 Measure A Transit Improvement Program 
Other Programs 
Other Local Projects

Appendices:
A.  Employee Positions by Division and Pay Ranges
B.  Budgeted Positions by Division and Classification
C.  Population Data for Santa Clara County by City
D.  Ten Year Summary of Santa Clara County Employment Information
E.  Projects Closed or Scope Reduced by Capital Improvement Program Oversight Committee 
F.  Fiscal Year 2003-04 Capital Budget Summary 
G.  Additional Information on Non-Revenue Vehicle Purchase
H.  Fiscal Year 2003-04 ATU Pension Fund Expenditure Plan
I.  Proposed Fiscal Year 2003-04 Basic Fare Structure for Bus, Light Rail and Paratransit Services, and ECO Pass Pricing Information
J.  Fee Schedules
Glossary


GENERAL MANAGER'S BUDGET MESSAGE
Last year's budget message opened with the necessity for a service reduction, a fare increase and most disturbing, a reduction in our workforce. At that time I also stated "If we don't effectively address the situation over the next several months, we'll be faced with an even more critical issue next year at this time".

Here we are, one year later. The economy is showing no sign of recovery. We've just completed seven quarters of negative sales tax performance (unprecedented at any time during the past 25 years). And, in spite of a great deal of good intentions, discussion, discovery and dedication, we still don't have a viable solution. The result will come as no surprise to those who have been working closely with us this past year.

And once again, we are facing a service reduction, a fare increase and another reduction in our workforce. This time, however, the required service cut is so deep that it will take us back to l981 levels of service. Can V T A survive? We hope so, as do the thousands of customers we will impact, along with those talented, dedicated employees we will be forced to lay off as well as those who will remain.

The fare increase is designed to generate at least $4 million in necessary revenue, (before considering the effects of the proposed service reductions). Raising fares when we are also making significant service cuts is not an ideal approach, but we have little choice. In combination with several expenditure cuts and efficiency measures, this revenue will help us improve our farebox recovery ratio. In truth, that's secondary to the primary need to generate cash. Without this cash, additional services would have to be cut.

The loss of ridership with fare increases and service reductions is usually temporary. But these are unusual times and recently historical trends haven't exactly reflected what actually happens in the future. We can only hope our customers will understand and remain loyal to V T A during these extremely difficult times. We will continue to do everything we can to earn, and hopefully retain, their loyalty.

The loss of any employee through a layoff is difficult, but this one cuts very deep into the heart of this organization. These are highly skilled, well-trained and extremely loyal individuals who have served to energize V T A. This is not just a job to them. They believe in what they do and in the people they serve. It is incumbent upon those of us who can impact this financial crisis to resolve the issue of additional revenue, restore effective and efficient services, and get our people back to work as quickly as we can, serving the public, our customers, as only they can do.

Those who have taken the time to look carefully at V T A these past two years of economic turmoil should realize how skillfully this organization has been able to manage its way through this fiscal crisis up to this point. There are "fiscal hero's" everywhere. The multitude of individuals who have found ways to save V T A money...the two individuals who discovered a $750,000 error in diesel fuel billing...the review, re-review and subsequent deferral of over $120 millions of capital projects so that we can keep more service on the street...the series of unique (and often one-time) financial transactions that have or will serve to keep us going a bit longer...the effective use of V T A's reserves these past months, enabling us to keep funding as much service as possible. Some may recall that at one point, two years ago, V T A was criticized for having too much in our unrestricted reserves. While we acknowledged their comments, we're glad we retained our reserve program.

As a result of the above and much, much more from those within our organization and those affiliated with us (such as input and suggestions from our financial advisors) we have been able to protect our customers from major negative impacts until this past April. While to some, this may not seem like an accomplishment, I would say it is. In fact, I believe it is a major accomplishment and directly a result of the commitment of V T A employees.

While much of our focus has been on V T A's enterprise fund (that supports transit operations) this past year, the impact of the economy on the 1996 Measure B Program and State supported major capital projects has sent us "back to the drawing board" several times this past year. Through the judicious use of swap funds, Garvee bonds and other unique approaches, we have been able to keep the bulk of the major capital program moving ahead, most of which is forecast to be completed below budget and ahead of schedule.

As you look through this document, you will have the opportunity to review a short synopsis of the myriad of activities and accomplishments V T A has had or undertaken this past year. Please take the time to look them over. It is very easy and understandable for these to be overshadowed by our fiscal situation. They are, nonetheless, a critical piece of this past year's history and reflective of V T A's impact on our community.

In developing this budget effort, many are aware, we modified our normal approach and focused on developing a two-year financial plan for Fiscal Year 2003-04 and Fiscal Year 2004-05. We fully realize it will change, perhaps a great deal over the next two years, but we felt it critical to develop a financial program that would provide an opportunity to identify and implement a long-term financial strategy for V T A in concert with our stakeholders who reside and work within our county. It is, after all, really their transportation organization.

This budget scenario will help us buy a little time. We've deferred many programs and projects, many of which should not be deferred for long. Excess deferral will serve to the detriment of V T A, our customers and our community. We've consumed or are in the process of using up the last of the "unique" one-time financial transactions. Again, we can only buy a little time.
 
Signed by Peter M. Cipolla
General Manager
April 15, 2003

Resolution No.     
RESOLUTION OF THE BOARD OF DIRECTORS OF THE SANTA CLARA VALLEY TRANSPORTATION AUTHORITY (V T A)
ADOPTING A BIENNIAL BUDGET OF V T A
FOR THE PERIOD JULY 1, 2003 THROUGH JUNE 30, 2005
(FISCAL YEAR 2003-04 AND FISCAL YEAR 2004-05)

WHEREAS, on or before April 25, 2003, the General Manager presented the Santa Clara Valley Transportation Authority Fiscal Year 2003-2004 Recommended Budget to the Board of Directors and mailed a copy to each City Manager and Mayor in the County of Santa Clara and to the County Executive; and

WHEREAS, additional copies of the Recommended Budget were distributed to V T A's Advisory Committee membership, libraries in Santa Clara County, Santa Clara County's state and federal legislative delegation, senior and disabled groups, professional community organizations, and the news media, and were available for review on V T A's website w w w.V T A.org and at V T A's Downtown Customer Service Center, as well as libraries and city halls throughout the County; and

WHEREAS, the Recommended Budget includes all administrative, operational and capital expenses for the Congestion Management Program together with the apportionment of Congestion Management Program expenses by levy against the Managing Agency and each Member Agency to the extent necessary to fund the Congestion Management Program; and
	
WHEREAS, the Recommended Budget was reviewed by the Administration and Finance Committee on May 15, 2003, and on April 25 and June 5, 2003, by the Board of Directors at public meetings conducted throughout the County; 

WHEREAS, a list of employee position classifications and pay ranges is included in the recommended budget as Appendix A, and the amount of funds budgeted for wages, salaries and benefits for Fiscal Year 2003-2004 is based upon V T A's position classification and pay plan and is set forth in the Statement of Revenues and Expenses in the Recommended Budget; and

WHEREAS, the Board of Directors desires to adopt a biennial budget for the period of July 1, 2003 through June 30, 2005 (Fiscal Year 2003-04 and Fiscal Year 2004-05);

NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Santa Clara Valley Transportation Authority that the attached recommended budget for the Santa Clara Valley Transportation Authority (marked "Exhibit A" and incorporated herein as though set forth at length), is hereby adopted as V T A's budget for the Fiscal Year 2003-2004.

BE IT FURTHER RESOLVED that, effective July 1, 2003, positions may be authorized and filled, as required, by the General Manager and General Counsel, as appropriate, provided that total V T A-wide budgeted wages, salaries and benefits account is not exceeded.

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

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

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

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

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

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

AYES: DIRECTORS
NOES: DIRECTORS
ABSENT: DIRECTORS
 
JANE P. KENNEDY, Chairperson of Board of Directors

ATTEST: SANDRA WEYMOUTH, Secretary of Board of Directors

APPROVED AS TO FORM: SUZANNE GIFFORD, General Counsel


SANTA CLARA VALLEY TRANSPORTATION AUTHORITY
FISCAL YEAR 2003-04/2004-05 BUDGETS EXECUTIVE SUMMARY
Ridership (In thousands)
Bus:  Fiscal Year 2001/02 Actual 44,900; Fiscal Year 2002/03 Adopted Budget 43,600; Fiscal Year 2002/03 Revised Budget 40,000; Fiscal Year 2003/04 Proposed Budget 33,000; Fiscal Year 2004/05 Proposed Budget 32,800.
Light Rail:  Fiscal Year 2001/02 Actual 7,790; Fiscal Year 2002/03 Adopted Budget 7,900; Fiscal Year 2002/03 Revised Budget 6,200; Fiscal Year 2003/04 Proposed Budget 5,260; Fiscal Year 2004/05 Proposed Budget 5,760.
Total Ridership:  Fiscal Year 2001/02 Actual 52,690; Fiscal Year 2002/03 Adopted Budget 51,500; Fiscal Year 2002/03 Revised Budget 46,200; Fiscal Year 2003/04 Proposed Budget 38,260; Fiscal Year 2004/05 Proposed Budget 38,560.
Service Miles (In Thousands)
Bus:  Fiscal Year 2001/02 Actual 22,044; Fiscal Year 2002/03 Adopted Budget 21,174; Fiscal Year 2002/03 Revised Budget 20,402; Fiscal Year 2003/04 Proposed Budget 15,698; Fiscal Year 2004/05 Proposed Budget 14,633.
Light Rail:  Fiscal Year 2001/02 Actual 2,033; Fiscal Year 2002/03 Adopted Budget 1,832; Fiscal Year 2002/03 Revised Budget 1,584; Fiscal Year 2003/04 Proposed Budget 1,415; Fiscal Year 2004/05 Proposed Budget 1,675.
Total Service Miles:  Fiscal Year 2001/02 Actual 24,077; Fiscal Year 2002/03 Adopted Budget 23,006; Fiscal Year 2002/03 Revised Budget 21,986; Fiscal Year 2003/04 Proposed Budget 17,113; Fiscal Year 2004/05 Proposed Budget 16,308.
Service Hours (In thousands)
Bus:  Fiscal Year 2001/02 Actual 1,589; Fiscal Year 2002/03 Adopted Budget 1,538; Fiscal Year 2002/03 Revised Budget 1,493; Fiscal Year 2003/04 Proposed Budget 1,151; Fiscal Year 2004/05 Proposed Budget 1,067.
Light Rail:  Fiscal Year 2001/02 Actual 137; Fiscal Year 2002/03 Adopted Budget 122; Fiscal Year 2002/03 Revised Budget 109; Fiscal Year 2003/04 Proposed Budget 96; Fiscal Year 2004/05 Proposed Budget 101.
Total Service Hours:  Fiscal Year 2001/02 Actual 1,726; Fiscal Year 2002/03 Adopted Budget 1,660; Fiscal Year 2002/03 Revised Budget 1,602; Fiscal Year 2003/04 Proposed Budget 1,247; Fiscal Year 2004/05 Proposed Budget 1,168.
Revenues (In thousand dollars)
Total Revenue:  Fiscal Year 2001/02 Actual 326,230; Fiscal Year 2002/03 Adopted Budget 336,927; Fiscal Year 2002/03 Revised Budget 360,566; Fiscal Year 2003/04 Proposed Budget 377,757; Fiscal Year 2004/05 Proposed Budget 311,136.
Major Revenue Components:
1/2 Cent Sales Tax:  Fiscal Year 2001/02 Actual 144,218; Fiscal Year 2002/03 Adopted Budget 155,000; Fiscal Year 2002/03 Revised Budget 133,000; Fiscal Year 2003/04 Proposed Budget 135,000; Fiscal Year 2004/05 Proposed Budget 139,000.
TCRP/Measure A Proceeds:  Fiscal Year 2001/02 Actual 0; Fiscal Year 2002/03 Adopted Budget 0; Fiscal Year 2002/03 Revised Budget 0; Fiscal Year 2003/04 Proposed Budget 81,945; Fiscal Year 2004/05 Proposed Budget 0.
TDA:  Fiscal Year 2001/02 Actual 95,401; Fiscal Year 2002/03 Adopted Budget 63,383; Fiscal Year 2002/03 Revised Budget 63,383; Fiscal Year 2003/04 Proposed Budget 634,50; Fiscal Year 2004/05 Proposed Budget 65,330.
Fares:  Fiscal Year 2001/02 Actual 31,282; Fiscal Year 2002/03 Adopted Budget 38,011; Fiscal Year 2002/03 Revised Budget 32,887; Fiscal Year 2003/04 Proposed Budget 31,495; Fiscal Year 2004/05 Proposed Budget 36,429.
Federal Operating Grants:  Fiscal Year 2001/02 Actual 14,023; Fiscal Year 2002/03 Adopted Budget 31,900; Fiscal Year 2002/03 Revised Budget 40,426; Fiscal Year 2003/04 Proposed Budget 30,284; Fiscal Year 2004/05 Proposed Budget 31,344.
Expenses (In thousand dollars)
Total Expense (excluding Contingency):  Fiscal Year 2001/02 Actual 352,405; Fiscal Year 2002/03 Adopted Budget 362,093; Fiscal Year 2002/03 Revised Budget 357,028; Fiscal Year 2003/04 Proposed Budget 407,460; Fiscal Year 2004/05 Proposed Budget 327,095.
Wages & Benefits:  Fiscal Year 2001/02 Actual 220,462; Fiscal Year 2002/03 Adopted Budget 227,888; Fiscal Year 2002/03 Revised Budget 229,007; Fiscal Year 2003/04 Proposed Budget 214,471; Fiscal Year 2004/05 Proposed Budget 207,195.
ADA:  Fiscal Year 2001/02 Actual 33,122; Fiscal Year 2002/03 Adopted Budget 32,452; Fiscal Year 2002/03 Revised Budget 30,556; Fiscal Year 2003/04 Proposed Budget 31,797; Fiscal Year 2004/05 Proposed Budget 32,751.
Debt Service:  Fiscal Year 2001/02 Actual 23,161; Fiscal Year 2002/03 Adopted Budget 25,268; Fiscal Year 2002/03 Revised Budget 24,168; Fiscal Year 2003/04 Proposed Budget 105,735; Fiscal Year 2004/05 Proposed Budget 23,579.
Caltrain:  Fiscal Year 2001/02 Actual 20,630; Fiscal Year 2002/03 Adopted Budget 16,605; Fiscal Year 2002/03 Revised Budget 18,146; Fiscal Year 2003/04 Proposed Budget 14,105; Fiscal Year 2004/05 Proposed Budget 14,387.
Materials & Supplies:  Fiscal Year 2001/02 Actual 14,715; Fiscal Year 2002/03 Adopted Budget 16,048; Fiscal Year 2002/03 Revised Budget 14,217; Fiscal Year 2003/04 Proposed Budget 13,200; Fiscal Year 2004/05 Proposed Budget 13,385.
Security:  Fiscal Year 2001/02 Actual 9,909; Fiscal Year 2002/03 Adopted Budget 9,473; Fiscal Year 2002/03 Revised Budget 9,383; Fiscal Year 2003/04 Proposed Budget 7,904; Fiscal Year 2004/05 Proposed Budget 8,499.
Other Service:  Fiscal Year 2001/02 Actual 8,551; Fiscal Year 2002/03 Adopted Budget 7,883; Fiscal Year 2002/03 Revised Budget 7,457; Fiscal Year 2003/04 Proposed Budget 6,584; Fiscal Year 2004/05 Proposed Budget 6,380.
Fuel:  Fiscal Year 2001/02 Actual 4,809; Fiscal Year 2002/03 Adopted Budget 5,964; Fiscal Year 2002/03 Revised Budget 6,091; Fiscal Year 2003/04 Proposed Budget 6,161; Fiscal Year 2004/05 Proposed Budget 5,143.
Operating Cost Recovery Ratio:  Fiscal Year 2001/02 Actual 13 point 4 percent; Fiscal Year 2002/03 Adopted Budget 14 point 5 percent; Fiscal Year 2002/03 Revised Budget 14 percent; Fiscal Year 2003/04 Proposed Budget 13 point 3 percent; Fiscal Year 2004/05 Proposed Budget 14 point 8 percent.
Farebox Recovery Ratio:  Fiscal Year 2001/02 Actual 11 point 6 percent; Fiscal Year 2002/03 Adopted Budget 13 point 3 percent; Fiscal Year 2002/03 Revised Budget 11 point 9 percent; Fiscal Year 2003/04 Proposed Budget 12 point 6 percent; Fiscal Year 2004/05 Proposed Budget 14 point 6 percent.
Number of Capital Projects:
New Projects: Fiscal Year 2002/03 Adopted Budget 12 projects; Fiscal Year 2002/03 Revised Budget 14 projects; Fiscal Year 2003/04 Proposed Budget 12 projects.
Augmented Projects: Fiscal Year 2002/03 Adopted Budget 4 projects; Fiscal Year 2002/03 Revised Budget 23 projects; Fiscal Year 2003/04 Proposed Budget 2 projects.
Carryover Projects: Fiscal Year 2002/03 Adopted Budget 90 projects; Fiscal Year 2002/03 Revised Budget 36 projects; Fiscal Year 2003/04 Proposed Budget 71 projects.
Total Number of Projects: Fiscal Year 2002/03 Adopted Budget 106 projects; Fiscal Year 2002/03 Revised Budget 73 projects; Fiscal Year 2003/04 Proposed Budget 85 projects.
Gross Project Expenditures (In thousand dollars)
New Projects:  Fiscal Year 2002/03 Adopted Budget 4,668; Fiscal Year 2002/03 Revised Budget 4,259; Fiscal Year 2003/04 Proposed Budget 4008.
Augmented Projects:  Fiscal Year 2002/03 Adopted Budget 2,848; Fiscal Year 2002/03 Revised Budget 64,104; Fiscal Year 2003/04 Proposed Budget 1,000.
Carryover Projects:  Fiscal Year 2002/03 Adopted Budget 944,904; Fiscal Year 2002/03 Revised Budget 922,660; Fiscal Year 2003/04 Budget 991,022.
Total Number of Projects:  Fiscal Year 2002/03 Adopted Budget 952,420; Fiscal Year 2002/03 Revised Budget 991,023; Fiscal Year 2003/04 Budget 996,030.


VISION, MISSION, AND STRATEGIC PLAN
In September 1995, the Board of Directors adopted a vision and mission statement for the Santa Clara Valley Transportation Authority (V T A).  This statement provides a framework for making future policy, planning and budgetary decisions. 

VISION STATEMENT
The vision of the Santa Clara Valley Transportation Authority (V T A) is to provide a transportation system that allows anyone to go anywhere in the region easily and efficiently.

This statement contains the long-range vision for V T A and portrays the desired future V T A seeks to achieve.  The vision is regional, including both the immediate areas of Santa Clara County and the bordering Bay Area to which the County is linked economically, socially, and culturally.

MISSION STATEMENT
The mission of the Santa Clara Valley Transportation Authority (V T A) is to provide the public with a safe and efficient countywide transportation system.  The system increases access and mobility, reduces congestion, improves the environment, and supports economic development, thereby enhancing quality of life.

The mission or core purpose of V T A is to provide a "safe and efficient countywide transportation system."  The emphasis is on an integrated transportation system that comprises the full range of mobility options, from cars, buses, and rail systems to walking and bicycle trips.  The system will allow members of the public to travel easily and comfortably to their destination by the most appropriate means.

POLICY DIRECTIONS
In adopting the vision and mission in 1995, the Board of Directors specified four key policy directions for V T A.   In March 1999, the Board adopted a fifth policy direction related to the 1996 Measure A transportation program of projects.

- Integrate transportation and land use
- Use all transportation options
- Create a safe, convenient, reliable and high-quality bus/rail operation
- Build a regional perspective
- In partnership with the County of Santa Clara, implement the 1996 Measure A transportation program of projects

STRATEGIC PLAN
The Strategic Plan serves as the umbrella policy document for V T A and drives the Recommended Budget and other documents for which V T A has responsibility, such as the Short Range Transit Plan (S R T P), the Congestion Management Program (C M P), and the Countywide Transportation Plan.  The goals set forth in the Strategic Plan are ambitious but attainable, and include mechanisms for measuring performance.

The Strategic Plan contains V T A's strategies for implementing the mission and achieving the vision.  Five broad goal areas form the basis of the plan:

- Enhance our customer focus
- Improve mobility and access
- Integrate transportation and land use
- Maintain financial stability
- Increase employee ownership

The divisional goals contained in this budget are consistent with the broad goals established in the Strategic Plan. 

The Strategic Plan also includes a 10-year Business Plan for V T A.  The Business Plan consists of a 10-year forecast of transit service levels, expenses, revenues, and specific performance measures with annual benchmarks for monitoring progress towards attaining our goals.  V T A's actual performance is analyzed each year against the performance measures, and the Business Plan is modified accordingly.  V T A's current Business Plan was released in 1998.

CURRENT OPERATIONS
The Santa Clara Valley Transportation Authority (V T A) is an independent public agency responsible for bus and light rail operation, A D A paratransit service, congestion management, specific highway improvement projects, and countywide transportation planning.  As such, V T A is both an accessible transit provider and a multi-modal transportation planning and implementation organization involved with transit, roadways, bikeways, and pedestrian facilities.

V T A provides transit services to the 326 square mile urbanized portion of Santa Clara County that is comprised of 15 cities and the County of Santa Clara with a total population of more than 1.7 million residents.  A historical summary of the county population by city is presented in Appendix C.  V T A operates 69 bus routes and two light rail transit (L R T) lines (Guadalupe and Tasman) within this service area.  In addition, V T A funds paratransit and privately operated shuttle services in the County and participates in providing inter-regional commuter rail and express bus services.  All of the bus and rail vehicles are accessible for individuals with disabilities.

In January 1995, V T A was designated as the Congestion Management Agency and changed from being exclusively a transit provider to an organization responsible for countywide transportation planning, funding, and congestion management within the County.

Map of Santa Clara County Transit Service Area -- Description
The map depicts the urbanized area of Santa Clara County. It shows the locations of the following cities: Campbell, Cupertino, Gilroy, Los Altos, Los Altos Hills, Los Gatos, Milpitas, Monte Sereno, Morgan Hill, Mountain View, Palo Alto, San Jose, Santa Clara, Saratoga and Sunnyvale. In addition, it shows the major highways such as 17, 85, 87, 101, 237, 280, 680, and 880 traversing the County and some major surface streets in the County.

V T A, in partnership with the County of Santa Clara, assumed the responsibility for implementing the 1996 Measure B Transportation Improvement Program of transit and highway improvement projects. In addition, V T A is responsible for implementing the 2000 Measure A Transportation Improvement Measure - an essential element of VTP 2020. 

The following section provides a summary of V T A's services:

BUS OPERATIONS
By the beginning of FISCAL YEAR 2003-04, V T A will have an active bus fleet of 433 diesel-powered buses, which includes 235 low-floor buses.  The average age of the active fleet is about 3.8 years and the buses range from new to over 11 years old.  There are approximately 4,700 bus stops and 700 shelters along the bus routes.  V T A also maintains 15 park & ride lots -- five owned by V T A and ten provided under a lease, permit, or joint use agreement with other agencies.  Buses are operated and maintained from three operating divisions and an Overhaul and Repair (O & R) facility: Cerone Operating Division, Don Pedro Chaboya Operating Division, North Operating Division and Cerone O&R Division.

LIGHT RAIL TRANSIT (L R T)
V T A operates a 29.5-mile L R T system connecting the Silicon Valley employment areas of Mountain View, Sunnyvale, Santa Clara, North San Jose and Milpitas to residential areas in South San Jose.  The L R T system has a total of 50 stations and 16 park & ride lots.  It operates on three routes: service between Santa Teresa and the Baypointe Station in North San Jose, service between Mountain View and the I-880/Milpitas Station in Milpitas and shuttle service between Almaden and Ohlone-Chynoweth Stations in South San Jose.  A fleet of new Kinkisharyo low floor light rail vehicles operates exclusively on the Tasman light rail line.  V T A will deploy a mixed fleet of Kinkisharyo low floor and U T D C high floor light rail vehicles on the Guadalupe line for part of 2003 until adequate numbers of the Kinkisharyo vehicles are commissioned and the interim platform retrofit project is complete.  All 79 (32 Kinkisharyo and 47 U T D C) light rail vehicles are stored and maintained at the Guadalupe Operating Division near downtown San Jose.

PARATRANSIT SERVICES
In 1992, V T A implemented a paratransit system, which operates throughout the County.  V T A contracts with Outreach and Escort, Inc., to serve as a broker and provide paratransit service through contracts with vendors. Eligible riders call Outreach to schedule their trips.  Outreach then assigns the trips based on the most appropriate mode that can meet the riders' needs: taxi, sedan, accessible van, or transfer to or from fixed-route.  V T A is in full compliance with the Americans with Disabilities Act (A D A).  

In 2002, V T A began the development of the Paratransit Business Practices Improvement Plan.  This four-phased plan is designed to control increasing costs through a variety of methodologies, which will improve productivity, decrease vendor and broker costs and increase revenue.  Phases 1 and 2 have been implemented.  Phase 3 is scheduled for implementation in October 2003, and Phase 4 may be implemented later in the year.

CONTRACTED AND INTERAGENCY TRANSIT SERVICES
V T A is also a partner in various ventures that expand the transportation options for our customers.  These relationships include commuter rail, inter-county express bus lines, and rail feeder services.  They are operated either by contract or through cooperative agreements.

Caltrain/Peninsula Corridor Joint Powers Board (P C J P B)
Caltrain is the commuter rail service provided by the P C J P B, which is governed by representatives from San Francisco, San Mateo, and Santa Clara counties.  It operates between Gilroy and San Francisco.  Seventy-six trains operate between San Jose Diridon Station and San Francisco each weekday, with 67 of these trains extended to the Tamien Station in San Jose where a connection can be made to the V T A L R T system.  Connection to the L R T system can also be made at the Mountain View Caltrain Station.  Eight peak-hour weekday trains (four northbound in the morning and four southbound in the evening) extend Caltrain from Tamien station to Gilroy.  There are 34 stations along the line; 16 are located in Santa Clara County.  The system uses diesel-powered locomotives. The share of the operating costs apportioned to each member agency is based upon morning peak period boardings in each county.

Complete service planning information, budget and financial statements for P C J P B can be obtained from SamTrans at 1250 San Carlos Avenue, San Carlos, California 94070.

Altamont Commuter Express Rail Service
The Altamont Commuter Express (A C E) rail service provides peak hour, weekday commuter rail service from the Central Valley to Santa Clara County (three morning and three afternoon commuter trains). V T A, the San Joaquin Regional Rail Commission, and the Alameda County Congestion Management Agency administer the service under a Joint Exercise of Powers Agreement.  The 85-mile rail line includes ten stations located in Stockton, Lathrop, Tracy, Livermore (2), Pleasanton, Fremont, Great America, Santa Clara and San Jose Diridon Station. V T A provides free shuttles to transport ACE riders between the Great America and San Jose Diridon stations and nearby employment sites.  The share of the operating costs apportioned to each participating county is based upon the proportional share of total daily boardings and alightings that occur in each county.

Complete service planning information, budget and financial statements for A C E can be obtained from the San Joaquin Regional Rail Commission at 5000 South Airport Way, Room 201, Stockton, California 95213.

Capitol Corridor Intercity Rail Service
The Capitol Corridor Intercity Rail service began in December 1991 and is a 170-mile train corridor from Auburn and Sacramento to San Jose, through Placer, Sacramento, Yolo, Solano, Contra Costa, Alameda and Santa Clara Counties.  Operating on the Union Pacific railroad tracks, Capitol Corridor service consists of four daily round trips from Sacramento to San Jose and seven daily round trips from Sacramento to Oakland with connecting bus service to and from San Jose.  One round trip per day extends beyond Sacramento to Auburn. 

The train service parallels the Interstate 80 corridor between Sacramento and Oakland, and Interstate 880 between Oakland and San Jose.  Service includes stops in Roseville, Sacramento, Davis, Suisun/Fairfield, Martinez, Richmond, Berkeley, Emeryville, Oakland, Hayward, Fremont, Santa Clara at Great America, and San Jose Diridon Station.  On July 1, 1998, the Capitol Corridor Joint Powers Authority (C C J P A), which is comprised of representatives from the eight counties served by the corridor, assumed responsibility for the service.  Under contract with the C C J P A, the Bay Area Rapid Transit District (BART) manages the service and Amtrak operates the service on tracks owned by Union Pacific Railroad. The funding is provided by the State of California.

Complete service planning information, budget and financial statements for the Capitol Corridor Joint Powers Authority can be obtained from 1000 Broadway, Suite 604, Oakland, California 94607. 

Inter-county Bus Services
V T A co-sponsors two inter-county bus services through cooperative arrangements with other transit systems.  

The Dumbarton Express is a transbay express route operating between the Union City BART Station and the Stanford Research Park in Palo Alto.  It provides the only regularly scheduled public transit service over the Dumbarton Bridge.  A consortium comprised of representatives from the Alameda-Contra Costa Transit District (A C Transit), the San Francisco Bay Area Rapid Transit District (BART), the City of Union City, the San Mateo County Transit District (SamTrans), and V T A underwrite the net operating costs of the service.  This service is contracted out to a private transit provider. SamTrans and V T A are responsible for 50percent of the net operating costs and the other East Bay transit operators are responsible for the rest. The remaining 50percent of the operating costs is apportioned based upon total daily boardings in Santa Clara and San Mateo Counties.

Express service over Highway 17 between Santa Cruz and downtown San Jose is funded and operated through an agreement between the Santa Cruz Metropolitan Transit District and V T A.  Santa Cruz Metro operates this service.  The two agencies share the net operating costs equally.  

Rail Shuttle Program
Under this program, V T A offers financial assistance to employers that wish to operate shuttle bus service between LRT stations and nearby employment centers.  The service is operated through private contractors provided by V T A or the employers.  Shuttles operate trips carrying employees from light rail in the morning to work and back again in the afternoon. Funding to operate this program is provided by the employers (minimum of 25percent), V T A, and grants from the Transportation Fund for Clean Air Act (A B 434).

D A S H and H P Pavilion Shuttle Programs 
V T A operates a free shuttle (D A S H) on weekdays between the downtown San Jose Transit Mall, San Jose State University, and the San Jose Diridon Train Station.  V T A, the Transportation Fund for Clean Air Act, the City of San Jose, and the San Jose Downtown Association fund this service.  

In addition, V T A operates a free shuttle service from the downtown San Jose Transit Mall to public events held in the HP Pavilion.  Recently, V T A staff met with the City of San Jose, San Jose Arena Authority, San Jose Arena Management and San Jose Downtown Association to develop a new funding scheme for this shuttle. All parties agree that the Sharks game service is worth continuing and funding is being pursued. V T A has requested that the other parties fund 50percent of the costs. If funding partners at this 50 percent level cannot be secured, this service will be discontinued. Service for other events will be discontinued due to low ridership and existing parallel bus service, effective May 9. 

San Jose Airport Flyer Service
V T A, in partnership with the City of San Jose, provides free Airport Flyer bus service connecting San Jose International Airport terminals and airport employee parking lots with V T A's Metro/Airport Light Rail Station and the Santa Clara Caltrain Station.  The City of San Jose and V T A equally share the operating costs for this service.

CONGESTION MANAGEMENT
V T A, as the Congestion Management Agency for Santa Clara County, is responsible for coordinating and prioritizing projects for state and federal transportation funds, administering the Transportation Fund for Clean Air Program, and coordinating land use and other transportation planning.

1996 MEASURE B TRANSPORTATION IMPROVEMENT PROGRAM (M B T I P)
In November 1996, the voters in Santa Clara County overwhelmingly approved Measure A, an advisory measure listing an ambitious program of transportation improvements for Santa Clara County.  Also approved on the same ballot, Measure B authorized the County Board of Supervisors to collect a nine-year half-cent sales tax for general county purposes.  Subsequently, the County Board of Supervisors adopted a resolution dedicating the tax for Measure A projects. Collection of the tax began in April 1997; however, use of the revenue was delayed pending the outcome of litigation challenging the legality of the sales tax.  In August 1998, the California courts upheld the tax allowing the implementation of the Measure A transportation projects to move forward.

In February 2000, the V T A Board of Directors approved a Master Agreement formalizing the partnership with the County of Santa Clara to implement the 1996 Measure B Transportation Improvement Program.  With this partnership in place, the County and V T A are in a position to complete a transportation program valued at over $1.4 billion.  V T A is responsible for project implementation and management of the transit and highway projects and assists in the administration of the pavement management and bicycle elements of the program.  A more detailed description of the program elements can be found in Section 4 of this document.

To monitor the progress of the program, V T A and County staff update the Measure B Program Revenue and Expenditure Plan for each upcoming Fiscal Year in June. Any scope, schedule or budget changes are formally requested through this document, upon which the V T A Board of Directors and the County Board of Supervisors take action during a joint workshop.  In December, V T A and County staff prepare the Measure B Program Status Report, which describes the status of each project within the program.  The report is also presented to the V T A Board of Directors and the County Board of Supervisors for review and acceptance.

2000 MEASURE A TRANSIT IMPROVEMENT PROGRAM
In August 2000, the V T A Board of Directors approved placing a measure on the November 7, 2000, General Election ballot allowing Santa Clara County voters the opportunity to vote on transportation improvements funded by a 30 year half-cent sales tax to take effect after the 1996 Measure B sales tax expires (March 31, 2006) in the county. More than 70 percent of the voters approved the 2000 Measure A.  

It was estimated that $6.8 billion (Fiscal Year 2000-01 constant dollars) would be collected. This amount will be revised to reflect the protracted decline in sales taxes. The revenue from this Measure may be used to finance the transit projects and operations specified in 2000 Measure A and listed in V T A's V T P 2020 Transportation Plan and Expenditure Program. V T P 2020 provides for a balanced transportation system consisting of transit, roadway, bicycle and pedestrian improvements. A more detailed description of the program elements can be found in Section 4.

Following is a description of V T A's organizational chart:
The Board of Directors is supported by the General Manager, Peter M. Cipolla, and the General Counsel, Suzanne Gifford. 

Under General Manager:
Operations, Chief Operating Officer, Frank T. Martin
Administrative Services, Chief Administrative Officer, Kaye L. Evleth
Construction, Chief Construction Officer, Jack Collins
Development and Congestion Management, Chief Development Officer, Mike Evanhoe
Fiscal Resources, Chief Financial Officer, Scott Buhrer

SANTA CLARA VALLEY TRANSPORTATION AUTHORITY
FISCAL YEAR 2003-04 and FISCAL YEAR 2004-05 PROPOSED BUDGETS
STATEMENT OF REVENUES AND EXPENSES (In thousand dollars)
Fares:  Fiscal Year 2001/02 Actual 31,282; Fiscal Year 2002/03 Adopted Budget 38,011; Fiscal Year 2002/03 Revised Budget 32,194; Fiscal Year 2003/04 Proposed Budget 31,495; Fiscal Year 2004/05 Proposed Budget 36,429.
One half Cent Sales Tax:  Fiscal Year 2001/02 Actual 144,218; Fiscal Year 2002/03 Adopted Budget 155,000; Fiscal Year 2002/03 Revised Budget 133,000; Fiscal Year 2003/04 Proposed Budget 135,000; Fiscal Year 2004/05 Proposed Budget 139,000.
TDA:  Fiscal Year 2001/02 Actual 95,401; Fiscal Year 2002/03 Adopted Budget 63,383; Fiscal Year 2002/03 Revised Budget 63,383; Fiscal Year 2003/04 Proposed Budget 63,450; Fiscal Year 2004/05 Proposed Budget 65,330.
STA:  Fiscal Year 2001/02 Actual 7,003; Fiscal Year 2002/03 Adopted Budget 7,322; Fiscal Year 2002/03 Revised Budget 6,778; Fiscal Year 2003/04 Proposed Budget 4,274; Fiscal Year 2004/05 Proposed Budget 5,000.
State Operating Grants:  Fiscal Year 2001/02 Actual 1,066; Fiscal Year 2002/03 Adopted Budget 1,766; Fiscal Year 2002/03 Revised Budget 1,159; Fiscal Year 2003/04 Proposed Budget 1,177; Fiscal Year 2004/05 Proposed Budget 1,177.
Investment Earnings:  Fiscal Year 2001/02 Actual 24,381; Fiscal Year 2002/03 Adopted Budget 12,000; Fiscal Year 2002/03 Revised Budget 14,420; Fiscal Year 2003/04 Proposed Budget 2,000; Fiscal Year 2004/05 Proposed Budget 1,500.
Advertising Income:  Fiscal Year 2001/02 Actual 4,425; Fiscal Year 2002/03 Adopted Budget 4,589; Fiscal Year 2002/03 Revised Budget 3,402; Fiscal Year 2003/04 Proposed Budget 1,818; Fiscal Year 2004/05 Proposed Budget 1,818
Measure A Refinancing Proceeds:  Fiscal Year 2001/02 Actual 0; Fiscal Year 2002/03 Adopted Budget 0; Fiscal Year 2002/03 Revised Budget 29,263; Fiscal Year 2003/04 Proposed Budget 14,595; Fiscal Year 2004/05 Proposed Budget 14,566.
Other Income:  Fiscal Year 2001/02 Actual 4,319; Fiscal Year 2002/03 Adopted Budget 1,636; Fiscal Year 2002/03 Revised Budget 1,632; Fiscal Year 2003/04 Proposed Budget 1,375; Fiscal Year 2004/05 Proposed Budget 1,375.
Ongoing Revenues:  Fiscal Year 2001/02 Actual 312,095; Fiscal Year 2002/03 Adopted Budget 283,707; Fiscal Year 2002/03 Revised Budget 285,231; Fiscal Year 2003/04 Proposed Budget 255,184; Fiscal Year 2004/05 Proposed Budget 266,195.
Local Operating Assistance:  Fiscal Year 2001/02 Actual 112; Fiscal Year 2002/03 Adopted Budget 0; Fiscal Year 2002/03 Revised Budget 4,042; Fiscal Year 2003/04 Proposed Budget 0; Fiscal Year 2004/05 Proposed Budget 0
Federal Operating Grants:  Fiscal Year 2001/02 Actual 14,023; Fiscal Year 2002/03 Adopted Budget 31,900; Fiscal Year 2002/03 Revised Budget 40,426; Fiscal Year 2003/04 Proposed Budget 30,284; Fiscal Year 2004/05 Proposed Budget 31,344.
Financing Transactions:  Fiscal Year 2001/02 Actual 0; Fiscal Year 2002/03 Adopted Budget 16,320; Fiscal Year 2002/03 Revised Budget 16,320; Fiscal Year 2003/04 Proposed Budget 8,300; Fiscal Year 2004/05 Proposed Budget 8,400.
Sale of Property:  Fiscal Year 2001/02 Actual 0; Fiscal Year 2002/03 Adopted Budget 5,000; Fiscal Year 2002/03 Revised Budget 14,547; Fiscal Year 2003/04 Proposed Budget 0; Fiscal Year 2004/05 Proposed Budget 0.
Measure B Fund Swap:  Fiscal Year 2001/02 Actual 0; Fiscal Year 2002/03 Adopted Budget 0; Fiscal Year 2002/03 Revised Budget 0; Fiscal Year 2003/04 Proposed Budget 2,044; Fiscal Year 2004/05 Proposed Budget 5,197
TCRP/Measure A Debt Proceeds:  Fiscal Year 2001/02 Actual 0; Fiscal Year 2002/03 Adopted Budget 0; Fiscal Year 2002/03 Revised Budget 0; Fiscal Year 2003/04 Proposed Budget 81945; Fiscal Year 2004/05 Proposed Budget 0
One-Time Revenues:  Fiscal Year 2001/02 Actual 14,135; Fiscal Year 2002/03 Adopted Budget 53,220; Fiscal Year 2002/03 Revised Budget 75,335; Fiscal Year 2003/04 Proposed Budget 122,573; Fiscal Year 2004/05 Proposed Budget 44,941.
Total Revenue:  Fiscal Year 2001/02 Actual 326,230; Fiscal Year 2002/03 Adopted Budget 336,927; Fiscal Year 2002/03 Revised Budget 360,566; Fiscal Year 2003/04 Proposed Budget 377,757; Fiscal Year 2004/05 Proposed Budget 311,136.
Wages & Salaries:  Fiscal Year 2001/02 Actual 136,729; Fiscal Year 2002/03 Adopted Budget 144,768; Fiscal Year 2002/03 Revised Budget 136,343; Fiscal Year 2003/04 Proposed Budget 125,628;  Fiscal Year 2004/05 Proposed Budget 118,081.
Benefits:  Fiscal Year 2001/02 Actual 83,733; Fiscal Year 2002/03 Adopted Budget 83,120; Fiscal Year 2002/03 Revised Budget 92,664; Fiscal Year 2003/04 Proposed Budget 88,843; Fiscal Year 2004/05 Proposed Budget 89,114.
Materials & Supplies:  Fiscal Year 2001/02 Actual 14,715; Fiscal Year 2002/03 Adopted Budget 16,048; Fiscal Year 2002/03 Revised Budget 14,217; Fiscal Year 2003/04 Proposed Budget 13,200; Fiscal Year 2004/05 Proposed Budget 13,385.
Security:  Fiscal Year 2001/02 Actual 9,909; Fiscal Year 2002/03 Adopted Budget 9,473; Fiscal Year 2002/03 Revised Budget 9,383; Fiscal Year 2003/04 Proposed Budget 7,904; Fiscal Year 2004/05 Proposed Budget 8,499.
Professional & Special Services:  Fiscal Year 2001/02 Actual 8,326; Fiscal Year 2002/03 Adopted Budget 7,808; Fiscal Year 2002/03 Revised Budget 7,766; Fiscal Year 2003/04 Proposed Budget 4,645; Fiscal Year 2004/05 Proposed Budget 5,475.
Other Services:  Fiscal Year 2001/02 Actual 8,551; Fiscal Year 2002/03 Adopted Budget 7,883; Fiscal Year 2002/03 Revised Budget 7,457; Fiscal Year 2003/04 Proposed Budget 6,584; Fiscal Year 2004/05 Proposed Budget 6,380
Fuel:  Fiscal Year 2001/02 Actual 4,809; Fiscal Year 2002/03 Adopted Budget 5,964; Fiscal Year 2002/03 Revised Budget 6,091; Fiscal Year 2003/04 Proposed Budget 6,161; Fiscal Year 2004/05 Proposed Budget 5,143.
Traction Power:  Fiscal Year 2001/02 Actual 3,612; Fiscal Year 2002/03 Adopted Budget 4,000; Fiscal Year 2002/03 Revised Budget 3,589; Fiscal Year 2003/04 Proposed Budget 2,500; Fiscal Year 2004/05 Proposed Budget 3,100.
Tires:  Fiscal Year 2001/02 Actual 1,034; Fiscal Year 2002/03 Adopted Budget 1,049; Fiscal Year 2002/03 Revised Budget 977; Fiscal Year 2003/04 Proposed Budget 916; Fiscal Year 2004/05 Proposed Budget 938.
Utilities:  Fiscal Year 2001/02 Actual 2,161; Fiscal Year 2002/03 Adopted Budget 2,353; Fiscal Year 2002/03 Revised Budget 2,279; Fiscal Year 2003/04 Proposed Budget 2,470; Fiscal Year 2004/05 Proposed Budget 2,518.
Insurance:  Fiscal Year 2001/02 Actual 3,199; Fiscal Year 2002/03 Adopted Budget 4,262; Fiscal Year 2002/03 Revised Budget 4,111; Fiscal Year 2003/04 Proposed Budget 3,461; Fiscal Year 2004/05 Proposed Budget 4,438.
Data Processing:  Fiscal Year 2001/02 Actual 3,691; Fiscal Year 2002/03 Adopted Budget 3,124; Fiscal Year 2002/03 Revised Budget 3,125; Fiscal Year 2003/04 Proposed Budget 2,675; Fiscal Year 2004/05 Proposed Budget 2,726.
Office Expense:  Fiscal Year 2001/02 Actual 745; Fiscal Year 2002/03 Adopted Budget 787; Fiscal Year 2002/03 Revised Budget 703; Fiscal Year 2003/04 Proposed Budget 662; Fiscal Year 2004/05 Proposed Budget 671.
Communications:  Fiscal Year 2001/02 Actual 1,439; Fiscal Year 2002/03 Adopted Budget 1,750; Fiscal Year 2002/03 Revised Budget 1,644; Fiscal Year 2003/04 Proposed Budget 1,625; Fiscal Year 2004/05 Proposed Budget 1,642.
Employee Related Expense:  Fiscal Year 2001/02 Actual 1,505; Fiscal Year 2002/03 Adopted Budget 1,671; Fiscal Year 2002/03 Revised Budget 1,523; Fiscal Year 2003/04 Proposed Budget 1,099; Fiscal Year 2004/05 Proposed Budget 1,115.
Leases & Rents:  Fiscal Year 2001/02 Actual 674; Fiscal Year 2002/03 Adopted Budget 739; Fiscal Year 2002/03 Revised Budget 651; Fiscal Year 2003/04 Proposed Budget 630; Fiscal Year 2004/05 Proposed Budget 639.
Miscellaneous:  Fiscal Year 2001/02 Actual 944; Fiscal Year 2002/03 Adopted Budget 1,916; Fiscal Year 2002/03 Revised Budget 1,930; Fiscal Year 2003/04 Proposed Budget 1,692; Fiscal Year 2004/05 Proposed Budget 1,474.
Reimbursements:  Fiscal Year 2001/02 Actual -17,219; Fiscal Year 2002/03 Adopted Budget -16,750; Fiscal Year 2002/03 Revised Budget -17,400; Fiscal Year 2003/04 Proposed Budget -21,140; Fiscal Year 2004/05 Proposed Budget -15,631.
Operating Expense:  Fiscal Year 2001/02 Actual 268,557; Fiscal Year 2002/03 Adopted Budget 279,965; Fiscal Year 2002/03 Revised Budget 277,053; Fiscal Year 2003/04 Proposed Budget 249,555; Fiscal Year 2004/05 Proposed Budget 249,707.
A D A:  Fiscal Year 2001/02 Actual 33,122; Fiscal Year 2002/03 Adopted Budget 32,452; Fiscal Year 2002/03 Revised Budget 30,556; Fiscal Year 2003/04 Proposed Budget 31,797; Fiscal Year 2004/05 Proposed Budget 32,751
Caltrain:  Fiscal Year 2001/02 Actual 14,897; Fiscal Year 2002/03 Adopted Budget 14,105; Fiscal Year 2002/03 Revised Budget 14,105; Fiscal Year 2003/04 Proposed Budget 14,105; Fiscal Year 2004/05 Proposed Budget 14,387.
Caltrain Capital Contribution:  Fiscal Year 2001/02 Actual 5,733; Fiscal Year 2002/03 Adopted Budget 2,500; Fiscal Year 2002/03 Revised Budget 4,041; Fiscal Year 2003/04 Proposed Budget 0; Fiscal Year 2004/05 Proposed Budget 0.
Light Rail Shuttles:  Fiscal Year 2001/02 Actual 1,237; Fiscal Year 2002/03 Adopted Budget 1,340; Fiscal Year 2002/03 Revised Budget 1,223; Fiscal Year 2003/04 Proposed Budget 1,000; Fiscal Year 2004/05 Proposed Budget 1,000.
Altamont Commuter Express:  Fiscal Year 2001/02 Actual 3,160; Fiscal Year 2002/03 Adopted Budget 5,100; Fiscal Year 2002/03 Revised Budget 3,960; Fiscal Year 2003/04 Proposed Budget 3,960; Fiscal Year 2004/05 Proposed Budget 4,034.
Highway 17 Express:  Fiscal Year 2001/02 Actual 520; Fiscal Year 2002/03 Adopted Budget 587; Fiscal Year 2002/03 Revised Budget 425; Fiscal Year 2003/04 Proposed Budget 440; Fiscal Year 2004/05 Proposed Budget 440.
Dumbarton Express:  Fiscal Year 2001/02 Actual 246; Fiscal Year 2002/03 Adopted Budget 250; Fiscal Year 2002/03 Revised Budget 329; Fiscal Year 2003/04 Proposed Budget 355; Fiscal Year 2004/05 Proposed Budget 355.
Contribution to Other Agencies:  Fiscal Year 2001/02 Actual 436; Fiscal Year 2002/03 Adopted Budget 440; Fiscal Year 2002/03 Revised Budget 435; Fiscal Year 2003/04 Proposed Budget 466; Fiscal Year 2004/05 Proposed Budget 470.
Debt Service:  Fiscal Year 2001/02 Actual 23,161; Fiscal Year 2002/03 Adopted Budget 25,268; Fiscal Year 2002/03 Revised Budget 24,168; Fiscal Year 2003/04 Proposed Budget 105,735; Fiscal Year 2004/05 Proposed Budget 23,579.
Other Expense:  Fiscal Year 2001/02 Actual 1,336; Fiscal Year 2002/03 Adopted Budget 86; Fiscal Year 2002/03 Revised Budget 733; Fiscal Year 2003/04 Proposed Budget 47; Fiscal Year 2004/05 Proposed Budget 372.
Other Expense:  Fiscal Year 2001/02 Actual 83,848; Fiscal Year 2002/03 Adopted Budget 82,128; Fiscal Year 2002/03 Revised Budget 79,975; Fiscal Year 2003/04 Proposed Budget 157,905; Fiscal Year 2004/05 Proposed Budget 77,388.
Total Expense:  Fiscal Year 2001/02 Actual 352,405; Fiscal Year 2002/03 Adopted Budget 362,093; Fiscal Year 2002/03 Revised Budget 357,028; Fiscal Year 2003/04 Proposed Budget 407,460; Fiscal Year 2004/05 Proposed Budget 327,095.
Contingency:  Fiscal Year 2001/02 Actual 0; Fiscal Year 2002/03 Adopted Budget 5,000; Fiscal Year 2002/03 Revised Budget 1,927; Fiscal Year 2003/04 Proposed Budget 2,000; Fiscal Year 2004/05 Proposed Budget 2,000.
Surplus/(Deficit) to Reserves:  Fiscal Year 2001/02 Actual -26,175; Fiscal Year 2002/03 Adopted Budget -30,166; Fiscal Year 2002/03 Revised Budget 1,611; Fiscal Year 2003/04 Proposed Budget -31,703; Fiscal Year 2004/05 Proposed Budget -17,959.

OPERATING BUDGET
The core of V T A's financial crisis is the fact that V T A has experienced significant reductions in local sales tax revenue for seven consecutive quarters.   Instead of growing at a rate that maintains pace with the growth of operating expenses, the local sales tax receipts are trending below the levels V T A received in 1997/98.  The magnitude and duration of the decline in sales tax is the most extreme ever experienced by V T A.  The chart below shows sales tax results for the last decade.

A line and bar chart shows the quarterly half-cent sales tax receipts and percent changes from same quarter of pervious year:
V T A HALF CENT SALES TAX QUARTERLY PERFORMANCE
Data through second quarter FY 2002-03
FY92 Q1: Quarterly Sales Tax 22,388; Percent Change from Same Quarter of Previous Year 2 point 1.
FY92 Q2: Quarterly Sales Tax 23,164; Percent Change from Same Quarter of Previous Year -2 point 2.
FY92 Q3: Quarterly Sales Tax 20,958; Percent Change from Same Quarter of Previous Year -2.
FY92 Q4: Quarterly Sales Tax 23,390; Percent Change from Same Quarter of Previous Year 5 point 5.
FY93 Q1: Quarterly Sales Tax 21,713; Percent Change from Same Quarter of Previous Year -3.
FY93 Q2: Quarterly Sales Tax 24,382; Percent Change from Same Quarter of Previous Year 5 point 3.
FY93 Q3: Quarterly Sales Tax 21,422; Percent Change from Same Quarter of Previous Year 2 point 2.
FY93 Q4: Quarterly Sales Tax 23,141; Percent Change from Same Quarter of Previous Year -1 point 1.
FY94 Q1: Quarterly Sales Tax 23,967; Percent Change from Same Quarter of Previous Year 10 point 4.
FY94 Q2: Quarterly Sales Tax 24,781; Percent Change from Same Quarter of Previous Year 1 point 6.
FY94 Q3: Quarterly Sales Tax 22,790; Percent Change from Same Quarter of Previous Year 6 point 4.
FY94 Q4: Quarterly Sales Tax 23,597; Percent Change from Same Quarter of Previous Year 2.
FY95 Q1: Quarterly Sales Tax 23,735; Percent Change from Same Quarter of Previous Year -1.
FY95 Q2: Quarterly Sales Tax 26,198; Percent Change from Same Quarter of Previous Year 5 point 7.
FY95 Q3: Quarterly Sales Tax 23,429; Percent Change from Same Quarter of Previous Year 2 point 8.
FY95 Q4: Quarterly Sales Tax 27,276; Percent Change from Same Quarter of Previous Year 15 point 6.
FY96 Q1: Quarterly Sales Tax 28,491; Percent Change from Same Quarter of Previous Year 20.
FY96 Q2: Quarterly Sales Tax 31,808; Percent Change from Same Quarter of Previous Year 21 point 4.
FY96 Q3: Quarterly Sales Tax 30,107; Percent Change from Same Quarter of Previous Year 28 point 5.
FY96 Q4: Quarterly Sales Tax 31,867; Percent Change from Same Quarter of Previous Year 16 point 8.
FY97 Q1: Quarterly Sales Tax 31,091; Percent Change from Same Quarter of Previous Year 9 point 1.
FY97 Q2: Quarterly Sales Tax 34,167; Percent Change from Same Quarter of Previous Year 7 point 4.
FY97 Q3: Quarterly Sales Tax 30,415; Percent Change from Same Quarter of Previous Year 1.
FY97 Q4: Quarterly Sales Tax 33,296; Percent Change from Same Quarter of Previous Year 4 point 5.
FY98 Q1: Quarterly Sales Tax 34,160; Percent Change from Same Quarter of Previous Year 9 point 9.
FY98 Q2: Quarterly Sales Tax 37,995; Percent Change from Same Quarter of Previous Year 11 point 2.
FY98 Q3: Quarterly Sales Tax 32,375; Percent Change from Same Quarter of Previous Year 6 point 4.
FY98 Q4: Quarterly Sales Tax 33,899; Percent Change from Same Quarter of Previous Year 1 point 8.
FY99 Q1: Quarterly Sales Tax 36,836; Percent Change from Same Quarter of Previous Year 7 point 8.
FY99 Q2: Quarterly Sales Tax 34,925; Percent Change from Same Quarter of Previous Year -8 point 1.
FY99 Q3: Quarterly Sales Tax 34,661; Percent Change from Same Quarter of Previous Year 7 point 1.
FY99 Q4: Quarterly Sales Tax 37,290; Percent Change from Same Quarter of Previous Year 10.
FY00 Q1: Quarterly Sales Tax 37,898; Percent Change from Same Quarter of Previous Year 2 point 9.
FY00 Q2: Quarterly Sales Tax 41,504; Percent Change from Same Quarter of Previous Year 18 point 8.
FY00 Q3: Quarterly Sales Tax 41,143; Percent Change from Same Quarter of Previous Year 18 point 7.
FY00 Q4: Quarterly Sales Tax 46,220; Percent Change from Same Quarter of Previous Year 23 point 9.
FY01 Q1: Quarterly Sales Tax 48,170; Percent Change from Same Quarter of Previous Year 27 point 1.
FY01 Q2: Quarterly Sales Tax 51,132; Percent Change from Same Quarter of Previous Year 23 point 2.
FY01 Q3: Quarterly Sales Tax 41,913; Percent Change from Same Quarter of Previous Year 1 point 9.
FY01 Q4: Quarterly Sales Tax 42,326; Percent Change from Same Quarter of Previous Year -8 point 4.
FY02 Q1: Quarterly Sales Tax 37,818; Percent Change from Same Quarter of Previous Year -21 point 5.
FY02 Q2: Quarterly Sales Tax 38,597; Percent Change from Same Quarter of Previous Year -24 point 5.
FY02 Q3: Quarterly Sales Tax 32,752; Percent Change from Same Quarter of Previous Year -21 point 9.
FY02 Q4: Quarterly Sales Tax 35,051; Percent Change from Same Quarter of Previous Year -17 point 2.
FY03 Q1: Quarterly Sales Tax 34,552; Percent Change from Same Quarter of Previous Year -8 point 6.
FY03 Q2: Quarterly Sales Tax 34,656; Percent Change from Same Quarter of Previous Year -10 point 2.

The anticipated slow recovery of the economy has not materialized. Actually, the anemic recovery has stalled and the economy continues to deteriorate. Santa Clara County experienced its lowest unemployment rate ever, 1 point 3 percent, in December 2000. It was 7 point 7 percent in January 2002 when our last budget was prepared. It climbed to 8 point 9 percent by October 2002 and remains at 8 point 6 percent in February 2003. In excess of 190,000 jobs have been lost in our community. Organizations in the public sector at all levels, including the Federal, State and local, are now awakening to the financial crisis facing them. Announcements of huge deficits and implementation of painful cost saving and service reduction plans, including layoffs of personnel, by governmental agencies are ever increasingly common events. 

Last year we proposed a budget that included a 5 percent service reduction, incorporated a number of one time revenue enhancement strategies and projected that V T A would virtually exhaust the budget reserves by June 30, 2003.  Since that time we have taken several steps leading up to this budget.  We have implemented another 9percent reduction in V T A bus and light rail service hours. We have continued to review the capital budget and have over the last one and one-half years reduced or deferred over $120 million of capital projects. We have continued to aggressively seek out financial strategies that have enabled us to defer the depletion of our reserves for another two years.  Further, our proposed budget includes an additional 21 percent reduction in V T A bus and light rail services and another fare increase.  Yet still, as shown below, our on-going annual structural deficit is projected to be $62.9 million for Fiscal Year 2004-05. 

A table shows On-Going revenues and expenses, surplus/deficit, and beginning and ending reserves. (In thousand dollars)
On-Going Revenues: Fiscal Year 2002/03 Adopted Budget 283,707; Fiscal Year 2002/03 Revised Estimate 285,231; Fiscal Year 2003/04 Proposed 255,184; Fiscal Year 2004/05 Proposed 266,195.
On-Going Expenses: Fiscal Year 2002/03 Adopted Budget 367,093; Fiscal Year 2002/03 Revised Estimate 358,955; Fiscal Year 2003/04 Proposed 327,315; Fiscal Year 2004/05 Proposed 329,095.
On-Going Structural  Deficit: Fiscal Year 2002/03 Adopted Budget -83,386; Fiscal Year 2002/03 Revised Estimate -73,724; Fiscal Year 2003/04 Proposed -72,131; Fiscal Year 2004/05 Proposed -62,900.
Total One-Time Revenues: Fiscal Year 2002/03 Adopted Budget 53,220; Fiscal Year 2002/03 Revised Estimate 75,335; Fiscal Year 2003/04 Proposed 40,428; Fiscal Year 2004/05 Proposed 44,941.
Surplus/(Deficit) from Operations: Fiscal Year 2002/03 Adopted Budget -30,166; Fiscal Year 2002/03 Revised Estimate 1,611; Fiscal Year 2003/04 Proposed -31,703; Fiscal Year 2004/05 Proposed -17,959.
Reserves Committed for Local Share of Capital Projects (FY 2002-03 Revised Estimate consists of $4,759 in new projects and $36,413 in capital project scope reductions and deferrals.): Fiscal Year 2002/03 Adopted Budget -4,759; Fiscal Year 2002/03 Revised Estimate 31,654; Fiscal Year 2003/04 Proposed -4,717; Fiscal Year 2004/05 Proposed -5,000.
Reserves Beginning of Fiscal Year: Fiscal Year 2002/03 Adopted Budget 42,121; Fiscal Year 2002/03 Revised Estimate 42,465; Fiscal Year 2003/04 Proposed 75,730; Fiscal Year 2004/05 Proposed 39,310.
Reserves Ending of Fiscal Year: Fiscal Year 2002/03 Adopted Budget 7,196; Fiscal Year 2002/03 Revised Estimate 75,730; Fiscal Year 2003/04 Proposed 39,310; Fiscal Year 2004/05 Proposed 16,351.

The Recommended Budget for the next two years merely buys us time.  The two years will get us to the November 2004 election. The November 2004 election is the last opportunity to gain voter approval for new revenues that could stave off further drastic reductions in V T A services.

The two years will be necessary for all the stakeholders to decide what kind of organization they want V T A to be, what kind of system they want, the kind of services the public wants V T A to provide, directly and indirectly, and what they are willing to pay for.  It is clear that V T A cannot do everything that everyone wants.  The V T A Board of Directors will need to take an ever-increasing role in influencing the goals, objectives and mission(s) of the various other organizations that V T A provides funding for, including Caltrain, A C E and our A D A service.

Similarly, as we reflected on the recommendations of the Business Review Team (which was convened by 2002 V T A Chair Gonzales, see page 36) and the consultants to the 2003 Ad Hoc Financial Stability Committee of the V T A Board, it is evident that fares are expected to cover a larger percentage of V T A's operating expenses.  Over the course of the summer we will be drafting a Fare Policy that will make recommendations as to the overall farebox recovery goals recognizing that a comprehensive farebox recovery strategy encompasses fare revenue, expenditure efficiencies and ridership. 

This is our first biennial (two-year) budget, which is authorized by subsection (d) of Section 11-2 of the Administrative Code. Although the Administrative Code permits adoption of the biennial budget at this time, and provides for one general mid-term review by the Board and amendment at that time upon the affirmative vote of at least eight directors, we are proposing that the Board adopt a budget for Fiscal Year 2003-04 and approve in concept a budget for Fiscal Year 2004-05. The Fiscal Year 2004-05 budget will be presented to the Board for review and adoption next year at this time. 

We will also submit periodic budget reviews and updates over the next two years.  These reviews provide the Board and the public with an opportunity to evaluate V T A's actual performance after several months of operations. In addition, it presents a forum for V T A management to report to the Board any major differences between budgetary assumptions and actual results that have been occurred since the budget adoption and to request resource reallocations that are warranted due to changes caused by both internal and external factors.  

MAJOR BUDGET ASSUMPTIONS AND EXPLANATIONS

ONGOING REVENUES
Ridership and Fares
There is a clear and direct correlation between ridership and employment - ridership drops when employment declines.  If Santa Clara County continues to lose jobs, our ridership will likely continue to decline.  Conversely, a rebound in ridership should occur when the County's economy rebounds.  In order to compensate for the falling sales tax receipts and alleviate our operating deficits, the Administration and Finance Committee at the November 2002 meeting recommended that staff provide a proposal for a fare increase as soon as feasible. The Business Review Team (B R T) also recommended that V T A reduce fare discounts and increase multiples on monthly passes to levels more in line with peer transit agencies in the United States.  As a result, we have proposed fare increases for implementation in August 2003 with the goal of increasing the percentage of operating costs paid by patrons and the average fare revenue per boarding.  The proposed fare increase is estimated to cause an initial ridership decline of 5.8 percent with a gradual return over the next year. We anticipate the need of another fare increase in July 2004, which is estimated to result in an initial ridership loss of 4 point 8 percent with a gradual return over the following year.  Although every situation is unique, it is generally observed that lost patronage after a fare increase typically returns over a year to fifteen months with many riders returning in the first six months after the increase.

A line and bar chart shows the year to year percent changes for monthly ridership and employment from July 2000 through January 2003):

July 2000: Ridership 2 point 51; Employment 5 point 76.
August 2000: Ridership 11 point 08; Employment 5 point 66.
September 2000: Ridership 5 point 48; Employment 5 point 99.
October 2000: Ridership 4 point 84; Employment 5 point 91.
November 2000: Ridership 9 point 77; Employment 5 point 96.
December 2000: Ridership 5 point 81; Employment 6 point 09.
January 2001: Ridership 4 point 36; Employment 5 point 5.
February 2001: Ridership -3 point 51; Employment 4 point 87.
March 2001: Ridership 0 point 27; Employment 3 point 53.
April 2001: Ridership 0 point 05; Employment 1 point 48.
May 2001: Ridership -0 point 75; Employment 0 point 6.
June 2001: Ridership -4 point 87; Employment -1 point 05.
July 2001: Ridership -3 point 02; Employment -3 point 63.
August 2001: Ridership -6 point 15; Employment -4 point 93.
September 2001: Ridership -9 point 34; Employment -6 point 32.
October 2001: Ridership -4 point 15; Employment -7 point 59.
November 2001: Ridership -11 point 35; Employment -8 point 73.
December 2001: Ridership -14 point 74; Employment -9 point 52.
January 2002: Ridership -5 point 7; Employment -9 point 97.
February 2002: Ridership -0 point 83; Employment -10 point 11.
March 2002: Ridership -8; Employment -10 point 02.
April 2002: Ridership -1 point 97; Employment -9 point 96.
May 2002: Ridership -6 point 39; Employment -9 point 87.
June 2002: Ridership -7 point 99; Employment -9 point 37.
July 2002: Ridership -9 point 16; Employment -8 point 25.
August 2002: Ridership -12 point 12; Employment -7 point 48.
September 2002: Ridership -9 point 74; Employment -7 point 07.
October 2002: Ridership -10 point 28; Employment -6 point 26.
November 2002: Ridership -13 point 03; Employment -6 point 16.
December 2002: Ridership -12 point 13; Employment -5 point 88.
January 2003: Ridership -12 point 48; Employment -4 point 75.

In addition to the fare increase, the budget proposes a 21 percent reduction in overall service levels in October 2003. The reduction in service reduces projected reduced ridership to 40,000,000 for Fiscal Year 2003-04 and Fiscal Year 2004-05 before considering the impact of a concomitant fare increase.  Ridership for light rail is estimated to increase in Fiscal Year 2004-05 when the Tasman East/Capitol light rail extension to Alum Rock becomes operational in July 2004.

The combination of the fare increase and the service reduction reduces our total ridership projection to 38,260,000 in Fiscal Year 2003-04 and 38,560,000 in Fiscal Year 2004-05. This will generate fares of $29.2 million in Fiscal Year 2004 and $34.1 million in Fiscal Year 2004-05 assuming an additional fare increase in July 2004.  Without the currently proposed fare increase, Fiscal Year 2003-04 revenue would drop to an estimated $25.2 million due to reductions in ridership associated with the reduction in service.

We need to increase fares and reduce service levels at the same time because doing only one of them will impose greater and disproportionate hardship for those riders who depend on having V T A services available. We believe that our current proposal represents a balanced compromise.

Eco Pass, Residential Eco Pass and San Jose State University's Transit Access Program continue to be popular with employers, residential communities and students.  Currently the V T A Eco pass program includes almost 150,000 employees, residents and students in the area.  The projected revenues for Fiscal Year 2003-04 are estimated at $2.5 million.  These revenues are included in the calculation of the revenues per boarding.

A table shows ridership for bus and light rail, total fare revenue, and average fare per boarding:
Bus Ridership in thousands: Fiscal Year 2000/01 Actual 47,238; Fiscal Year 2001/02 Actual 44,900; Fiscal Year 2002/03 Adopted Budget 43,600; Fiscal Year 2002/03 Revised Budget 40,000; Fiscal Year 2003/04 33,000; Fiscal Year 2004/05 32,800.
Percent Change: Fiscal Year 2001/02 Actual -4 point 9 percent; Fiscal Year 2002/03 Adopted Budget -2 point 9 percent; Fiscal Year 2002/03 Revised Budget -8 point 3 percent; Fiscal Year 2003/04 -17 point 5 percent; Fiscal Year 2004/05 -0 point 6 percent.
Light Rail ridership in thousands: Fiscal Year 2000/01 Actual 9,237; Fiscal Year 2001/02 Actual 7,790; Fiscal Year 2002/03 Adopted Budget 7,900; Fiscal Year 2002/03 Revised Budget 6,200; Fiscal Year 2003/04 5,260; Fiscal Year 2004/05 5,760.
Percent Change: Fiscal Year 2001/02 Actual -15 point 7 percent; Fiscal Year 2002/03 Adopted Budget 1 point 4 percent; Fiscal Year 2002/03 Revised Budget -21 point 5 percent; Fiscal Year 2003/04 -15 point 2 percent; Fiscal Year 2004/05 9 point 5 percent.
Total Ridership in thousands: Fiscal Year 2000/01 Actual 56,475; Fiscal Year 2001/02 Actual 52,690; Fiscal Year 2002/03 Adopted Budget 51,500; Fiscal Year 2002/03 Revised Budget 46,200; Fiscal Year 2003/04 38,260; Fiscal Year 2004/05 38,560.
Percent Change: Fiscal Year 2001/02 Actual -6 point 7 percent; Fiscal Year 2002/03 Adopted Budget -2 point 3 percent; Fiscal Year 2002/03 Revised Budget -10 point 3 percent; Fiscal Year 2003/04 -17 point 2 percent; Fiscal Year 2004/05 0 point 8 percent.
Total Revenue in thousand dollars: Fiscal Year 2000/01 Actual 31,724; Fiscal Year 2001/02 Actual 28,826; Fiscal Year 2002/03 Adopted Budget 34,500; Fiscal Year 2002/03 Revised Budget 29,470; Fiscal Year 2003/04 29,231; Fiscal Year 2004/05 34,164. 
Percent Change: Fiscal Year 2001/02 Actual -9 point 1 percent; Fiscal Year 2002/03 Adopted Budget 19 point 7 percent; Fiscal Year 2002/03 Revised Budget -14 point 6 percent; Fiscal Year 2003/04 -0 point 8 percent; Fiscal Year 2004/05 16 point 9 percent. 
Average Fare Per Boarding: Fiscal Year 2000/01 Actual 0.56 dollar; Fiscal Year 2001/02 Actual 0.55 dollar; Fiscal Year 2002/03 Adopted Budget 0.67 dollar; Fiscal Year 2002/03 Revised Budget 0.64 dollar; Fiscal Year 2003/04 0.76 dollar; Fiscal Year 2004/05 0.89dollar. 
Percent Change: Fiscal Year 2001/02 Actual -2 point 6 percent; Fiscal Year 2002/03 Adopted Budget 22 point 4 percent; Fiscal Year 2002/03 Revised Budget -4 point 8 percent; Fiscal Year 2003/04 19 point 8 percent; Fiscal Year 2004/05 16 percent. 

HALF CENT SALES TAX
Regional Economic Growth - Half-Cent Sales Tax and T D A
The half-cent local sales tax and a quarter-cent state sales tax (also known as the Transportation Development Act or T D A) are the two most important income sources to V T A. About 68 percent (more than 80percent in Fiscal Year 2000-01) of V T A's proposed operating revenues are generated from them. They are driven by the local economy. The quarter-cent sales tax is derived from the same tax base as the half-cent sales tax but it is collected by the State. The proceeds are administered and allocated by the Metropolitan Transportation Commission (M T C). The cash flow fluctuates differently from the half-cent tax because the annual receipts are based on forecasts, which are adjusted in subsequent years for over-funding or under-funding in prior years.

A pie chart shows the percentage of the major revenue sources:
Half cent sales tax, 45 percent
T D A, 22 point 5 percent
Fares, 11 point 2 percent
Federal Preventative Maintenance, 10 point 1 percent
Financing Transactions, 2 point 8 percent
S T A, 1 point 4 percent
Measure A or Refinancing Proceeds, 4 point 9 percent
Other, 2 point 2 percent

Our latest quarterly receipts in March 2003 experienced the seventh consecutive quarterly decline and were 10.2 percent less than the same quarter last year and 32.2 percent less than the quarterly amounts received for the quarter ended December 31, 2001. The total of the latest four quarters is 14.7 percent less than that of previous four quarters. We are no longer optimistic that the economy will turn around soon. As a result, we reduced our Fiscal Year 2002-03 estimate down to $133 million and are hoping for a slight 1.5 percent increase to $135 million in half-cent sales tax receipts in Fiscal Year 2003-04 from the revised Fiscal Year 2002-03 estimate and 3 percent in  Fiscal Year 2004-05 to $139 million. 

Actual and Estimated Sales Tax Revenue Performance (In thousand dollars)
FY 2001 Revenue: Q1 48,170; Q2 51,132; Q3 41,913; Q4 42,326; Total 183,540.
FY 2001 Change from Previous Year: Q1 27 point 1 percent; Q2 23 point 2 percent; Q3 1 point 9 percent; Q4 -8 point 4 percent; Total 10 point 1 percent.
FY 2002 Revenue: Q1 37,818; Q2 38,597; Q3 32,752; Q4 35,051; Total 144,218.
FY 2002 Change from Previous Year: Q1 -21 point 5 percent; Q2 -24 point 5 percent; Q3 -21 point 9 percent; Q4 -17 point 2 percent; Total -21 point 4 percent.
FY 2003 Revenue: Q1 34,552; Q2 34,656; Estimated Q3 31,487; EstimatedQ4 32,306; Estimated Total 133,000.
FY 2003 Change from Previous Year: Q1 -8 point 6 percent; Q2 -10 point 2 percent; Estimated Q3 -3 point 9 percent; Estimated Q4 -7 point 8 percent; Estimated Total -7 point 8 percent.
FY 2004 Revenue: Estimated Q1 33,203; Estimated Q2 35,445; Estimated Q3 31,960; EstimatedQ4 34,392; Estimated Total 135,000.
FY 2004 Change from Previous Year: Estimated Q1 -3 point 9 percent; Estimated Q2 2 point 3 percent; Estimated Q3 1 point 5 percent; Estimated Q4 6 point 5 percent; Estimated Total 1 point 5 percent.
FY 2005 Revenue: Estimated Q1 34,187; Estimated Q2 36,495; Estimated Q3 32,907; EstimatedQ4 35,411; Estimated Total 139,000.
FY 2005 Change from Previous Year: Estimated Q1 3 point 0 percent; Estimated Q2 3 point 0 percent; Estimated Q3 3 point 0 percent; Estimated Q4 3 point 0 percent; Estimated Total 3 point 0 percent.

T D A
Transportation Development Act funds (T D A) are derived from a quarter cent sales tax levied by the State on taxable transactions occurring in Santa Clara County. A portion of these funds is retained by the Metropolitan Transportation Commission and approximately 94percent is returned to source, that is, Santa Clara County).

We have estimated the T D A funding on the same basis as our half-cent sales tax. For FISCAL YEAR 2003-04, we estimated $63.4 million ($135 million times 0.5 times 0.94) and for FISCAL YEAR 2004-05, we have estimated $65.3 million. According to the most recent M T C fund estimate, V T A's T D A funds are estimated to increase to $67.4 million in FISCAL YEAR 2003-04.  We expect the MTC estimate of T D A funding available to be revised downward. 

S T A
State Transit Assistance (S T A) apportionments to regional planning agencies (M T C in the Bay Area Region) are determined by two formulas: 
1) 50 percent of funds are distributed according to population and, 
2) 50 percent are distributed on a basis proportional to operator revenues in the region for the prior year. 

The Bay Area Region usually receives about 38 percent of State S T A funds.

According to M T C's most recent fund estimate, STA is estimated at $4.3 million in Fiscal Year 2003-04, a decrease of $2.5 million or 36 point 9 percent from the current year.

STATE OPERATING GRANTS
The state operating grants we have budgeted for Fiscal Year 2003-04 and Fiscal Year 2004-05 are from the A B 434 Program (Transportation Fund for Clean Air Program), which increased vehicle registration fees in the Bay Area by $4 to fund projects and programs that help reduce vehicle emissions. We request the grants to fund our LR shuttle operation. We only expect a small increase to $1.2 million in Fiscal Year 2003-04 and 2004-05 from Fiscal Year 2002-03 Revised Estimate.

INVESTMENT EARNINGS
The investment earnings are derived from three primary sources. First, are the funds which have been earmarked to underwrite operating deficits. These funds are invested by a money manager whose performance is evaluated by comparing actual results against the Institutional Money Market benchmark. The estimated earnings rate for Fiscal Year 2003-04 is 1 point 5 percent and for Fiscal Year 2004-05 is 2 point 5 percent.

The second source of earnings for the Enterprise Fund are from funds which relate to long-term liabilities for which V T A has set aside and restricted assets, (example, accrued vacation and sick leaves.) These funds are invested by a money manager whose performance is evaluated by comparing actual results against the Lehman Brothers U.S. Government Intermediate Bond Benchmark. The estimated earnings rate for Fiscal Year 2003-04 is 3 point 5 percent and for Fiscal Year 2004-05 is 4 percent.

The third source of earnings for the Enterprise Fund are from the funds which have been set aside to pay for the 70 new low floor light rail vehicles. The money manager has structured a series of investments that are scheduled to mature at intervals that coincide with the dates payments are due to the L R V manufacturer. Average rates of return for Fiscal Year 2003-04 are estimated at 1 point 5 percent and 2 point 5 percent for Fiscal Year 2004-05.

The composite average investable funds and rates of return are estimate at $108.9 million and 1 point 84 percent for Fiscal Year 2003-04 and $54.6 million and 2 point 75 percent for Fiscal Year 2004-05 resulting in estimated earnings of $2 million for Fiscal Year 2003-04 and $1.5 million for Fiscal Year 2004-05.

ADVERTISING INCOME
Advertising income is comprised of two components: advertising on buses and light rail vehicles, and bus shelter advertising. Advertising revenue for bus and light rail vehicles is projected at the minimum guaranteed amount of $1.5 million. We budget $318,000 for bus shelter advertising income.

MEASURE A REFINANCING PROCEEDS
We propose issuing debt to reimburse V T A operating funds for interest and principal that has been disbursed for the 2001 Series A Senior Lien Sales Tax Revenue Bonds.  The source of funds to repay this new debt is proposed to be the 2000 Measure A one half cent sales tax approved in November 2000.  The tax will start being collected on April 1, 2006.

The proceeds of the 2001 Series A Bonds were used to finance portions of Tasman East, Vasona, and Capitol 1996 Measure B Light Rail Projects.  Financing these projects for Measure B enabled the Measure B program to provide V T A with Measure B funds for the purchase of 70 low-floor light rail vehicles.  The acquisition of the low floor light rail vehicles was included in the 2000 Measure A Transit Improvement Program and approved by the Board of Directors in 2001.

The new debt will provide proceeds to reimburse V T A approximately $29.3 million in   Fiscal Year 2002-03, and fund the payment of $14.6 million in Fiscal Year 2003-04 and $14.6 million in Fiscal Year 2004-05. In the absence of the new debt, the V T A operating budget would have been repaid in Fiscal Year 2005-06 and Fiscal Year 2006-07 when Measure A sales tax receipts become available.

OTHER INCOME
Other income includes fines and forfeiture, use permit fees, property rentals, proceeds from the disposition of equipment (example, buses) and, from time to time, small grants for special operating projects (example, Job Access/Reverse Commute Program). We expect a decrease of $257,000 to $1.4 million in both Fiscal Year 2003-04 and Fiscal Year 2004-05, mainly due to a lower expected receipts from the Job Access Program and other miscellaneous incomes.
 
ONE-TIME REVENUES
LOCAL OPERATING ASSISTANCE 
In consideration of the financial constraints V T A is facing, the County Board of Supervisors and the V T A Board of Directors approved the use of approximately $10.8 million of the 1996 M B T I P Caltrain Plan by V T A to fund V T A's share of local contribution to the Caltrain Capital Program for three years beginning in Fiscal Year 2002-03, at the June 7, 2002 Joint Board Meeting. As a result, V T A received $4 million of 1996 M B T I P funds in Fiscal Year 2002-03. In the December Semi-Annual Update to Revenue and Expenditure Plan, the County and V T A deferred the remaining 1996 M B T I P funds earmarked for Caltrain matching purpose. 

FEDERAL OPERATING GRANTS
The federal operating grants we have budgeted for Fiscal Year 2003-04 and Fiscal Year 2004-05 are from the Preventative Maintenance Program, which is an eligible activity for F T A Section 5307 formula grant assistance.  Although the Section 5307 grant program is designed primarily to fund capital acquisitions, funds awarded for preventive maintenance essentially function to support the maintenance portion of the operating budget. In order words, grants which should be used to replace and refurbish our assets (example, buses) are converted into operating assistance. Currently, we treat all maintenance costs for revenue and non-revenue vehicles as eligible expenditure. 

It is important to note that we are now maximizing the use of preventive maintenance to reduce our operating deficits, with virtually no funds available for capital. This is a necessary strategy at this time, but one that cannot be sustained for a long period of time. Ultimately, we will need to replace and furbish our assets. 

$9.8 million of Federal Preventative Maintenance (example, federal operating assistance) was recognized in V T A's audited financial statements in Fiscal Year 2001-02. These funds were not included in V T A's budget process until Fiscal Year 2002-03. This is because we used Fiscal Year 2001-02 maintenance costs to justify the grant reimbursement, but did not expect to receive the reimbursement until Fiscal Year 2003-04. We actually received the funds in Fiscal Year 2002-03.

FISCAL YEAR 2002-03 Preventative Maintenance Program
For Fiscal Year 2002-03, V T A will receive a total of $40.4 million for preventive maintenance.  This consists of two grants.  The first one is a grant for $9.8 million of Fiscal Year 2001-02 formula funds that had been programmed for replacement buses.  The replacement bus project was cancelled and during Fiscal Year 2002-03, F T A approved the application of these funds against Fiscal Year 2001-02 maintenance operating expenses.  The second grant for $30.7 million is the amount of 5307 formula grants available to be applied against the Fiscal Year 2002-03 maintenance operating expenses.

FISCAL YEAR 2003-04 & FISCAL YEAR 2004-05 Preventative Maintenance Program
V T A is continuing to use the available Section 5307 to support the maintenance operating budget.  We anticipate receiving $30.2 million in Fiscal Year 2003-04 and $31.3 in Fiscal Year 2004-05.

FINANCING TRANSACTIONS
The financing transaction is associated with the new low-floor light rail vehicles.  The Board of Directors approved the transaction, (contingent upon a successful validation action) on April 13, 2003. The transaction consists of a Head Lease where V T A leases the vehicles to a trust and a Sublease where the trust leases the vehicles back to V T A.  The net benefit is highly dependent on equipment valuations (determined by appraisal) and remaining useful life of the assets, as well as prevailing interest rates at the time the transaction closes.  We anticipate that the first tranche, which is a specified part of a larger transaction, of the transaction will close before the end of Fiscal Year 2002-03 with a net benefit to V T A of approximately $11-$13 million.  V T A anticipates two additional "tranches" closing in Fiscal Year 2003-04 to generate a net benefit of approximately $22 to $25 million.  

SALE OF PROPERTY
The FISCAL YEAR 2002-03 Adopted Budget included the assumption that the Transit Program would sell a portion of the North Operating Division real estate to the Highway Program for $5 million. The Highway Program acquired the property for the 1996 M B T I P Route 85/101 (North) Interchange Project. The actual price paid, (based upon appraisal), was $4.9 million. 

We also sold the Winfield parcel for $1.1 million and the Evans Lane property for $8.6 million. These are no additional property sales assumed in the Recommended Budget for Fiscal Year 2003-04 and Fiscal Year 2004-05.

MEASURE B FUND SWAP
Due to V T A's existing financial condition, Staff completed a very detailed review of existing capital projects.  One of the projects that have been deferred is the downtown segment of the Guadalupe Corridor Platform Retrofit project. This project was financed in part by a $7.2 million FTA 5309 Rail Modernization grant.  V T A was able to reprogram this revenue to the Vasona 1996 Measure B Light Rail Project. In exchange for bringing the grant funding into the projects, the County agreed to provide an equivalent amount of 1996 Measure B sales tax funds to V T A. The 1996 M B T I P funds will be release to V T A as the grant funds are received. The swap proceeds are prepared to be used for operations.  It is anticipated that $2 million of the revenue will be received in Fiscal Year 2003-04 and $5.2 million in Fiscal Year 2004-05.  

TCRP/MEASURE A DEBT PROCEEDS
On October 10, 2002, the Board of Directors approved the issuance of Bond and Grant Application Notes (Notes) to fund the acquisition of a rail corridor from Union Pacific Railroad. The Notes were issued for the principal amount of $81.5 million at a stated interest rate of 3 percent, and mature in December 2003. Although we used our 1976 half cent sales tax to enhance the credit ratings of the Notes (thus reducing borrowing costs), it was, and is not, the intention to repay those notes with any funds other than the State Transportation Congestion Relief Program (T C R P) funds and 2000 Measure A Sales Tax. After the 2002 Notes were issued, the T C R P Program was suspended due to the current State budget crisis. We do not anticipate that TCRP funds will be made available until and if the State Legislature and the Governor agree to continue the T C R P Program. Additionally, V T A covenanted that prior to issuing any future debt, the repayment for these Notes would be provided for, or the Notes would be retired. Therefore, V T A must include in any transaction that advances 2000 Measure A Sales Tax, the refunding of these Notes. We anticipate receiving $81.9 million for repayment in Fiscal Year 2003-04.

EXPENSES

Service Levels 
The budget anticipates additional service reductions in October 2003. Details for the October reduction have not been finalized at this time, thus all Fiscal Year 2004-05 data should be viewed as approximate and preliminary. 

The service miles and hours in the table on the next page reflect only the partial impacts of the 9percent reduction in April 2003 (Fiscal Year 2002-03) the estimated 21 percent reduction in October 2003 (Fiscal Year 2003-04).  Fiscal Year 2004-05 reflects the annualized miles and hours of bus service after the two reductions.  The Tasman East and Capitol light rail extensions (to Alum Rock) will become operational in July 2004 (an additional 6.3 miles and 8 new stations). Light rail service is anticipated to increase in July 2004 (adding 300,000 service miles and 8,000 service hours).  However, overall miles and hours in Fiscal Year 2004-05 will still be reduced as a result of the full year effect of the October 2003 service reduction. 

Service Miles (In thousands)
Bus: Fiscal Year 2000/01 Actual 22,640; Fiscal Year 2001/02 Actual 22,044; Fiscal Year 2002/03 Adopted Budget 21,174; Fiscal Year 2002/03 Revised Budget 20,402; Fiscal Year 2003/04 15,698; Fiscal Year 2004/05 14,633.
Percent Change: Fiscal Year 2001/02 Actual -2 point 6 percent; Fiscal Year 2002/03 Adopted Budget -3 point 9 percent; Fiscal Year 2002/03 Revised Budget -3 point 6 percent; Fiscal Year 2003/04 -23 point1 percent; Fiscal Year 2004/05 -6 point 8 percent.
Light Rail Train: Fiscal Year 2000/01 Actual 1,927; Fiscal Year 2001/02 Actual 2,033; Fiscal Year 2002/03 Adopted Budget 1,832; Fiscal Year 2002/03 Revised Budget 1,584; Fiscal Year 2003/04 1,415; Fiscal Year 2004/05 1,675.
Percent Change: Fiscal Year 2001/02 Actual 5 point 5 percent; Fiscal Year 2002/03 Adopted Budget -9 point 9 percent; Fiscal Year 2002/03 Revised Budget -13 point 5 percent; Fiscal Year 2003/04 -10 point 7 percent; Fiscal Year 2004/05 18 point 4 percent.
Total Service Miles: Fiscal Year 2000/01 Actual 24,567; Fiscal Year 2001/02 Actual 24,077; Fiscal Year 2002/03 Adopted Budget 23,006; Fiscal Year 2002/03 Revised Budget 21,986; Fiscal Year 2003/04 17,113; Fiscal Year 2004/05 16,308.
Total Percent Change: Fiscal Year 2001/02 Actual -2 percent; Fiscal Year 2002/03 Adopted Budget -4 point 4 percent; Fiscal Year 2002/03 Revised Budget -4 point 4 percent; Fiscal Year 2003/04 -22 point 2 percent; Fiscal Year 2004/05 -4 point 7 percent.
Light Rail Car Miles: Fiscal Year 2000/01 Actual 2,885; Fiscal Year 2001/02 Actual 2,555; Fiscal Year 2002/03 Adopted Budget 2,655; Fiscal Year 2002/03 Revised Budget 2,187; Fiscal Year 2003/04 1,931; Fiscal Year 2004/05 2,473.
Percent Change: Fiscal Year 2001/02 Actual -11 point 4 percent; Fiscal Year 2002/03 Adopted Budget 3 point 9 percent; Fiscal Year 2002/03 Revised Budget -17 point 6 percent; Fiscal Year 2003/04 -11 point 7 percent; Fiscal Year 2004/05 28 point 1 percent.
Service Hours (In thousands):
Bus: Fiscal Year 2000/01 Actual 1,617; Fiscal Year 2001/02 Actual 1,589; Fiscal Year 2002/03 Adopted Budget 1,538; Fiscal Year 2002/03 Revised Budget 1,493; Fiscal Year 2003/04 1,151; Fiscal Year 2004/05 1,067.
Percent Change: Fiscal Year 2001/02 Actual -1 point 7 percent; Fiscal Year 2002/03 Adopted Budget -3 point 2 percent; Fiscal Year 2002/03 Revised Budget -2 point 9 percent; Fiscal Year 2003/04 -22 point 9 percent; Fiscal Year 2004/05 -7 point 3 percent.
Light Rail Train: Fiscal Year 2000/01 Actual 137; Fiscal Year 2001/02 Actual 137; Fiscal Year 2002/03 Adopted Budget 122; Fiscal Year 2002/03 Revised Budget 109; Fiscal Year 2003/04 96; Fiscal Year 2004/05 101.
Percent Change: Fiscal Year 2001/02 Actual 0 percent; Fiscal Year 2002/03 Adopted Budget -10 point 9 percent; Fiscal Year 2002/03 Revised Budget -10 point 7 percent; Fiscal Year 2003/04 -11 point 9 percent; Fiscal Year 2004/05 5 point 2 percent.
Total Service Hours: Fiscal Year 2000/01 Actual 1,754; Fiscal Year 2001/02 Actual 1,726; Fiscal Year 2002/03 Adopted Budget 1,660; Fiscal Year 2002/03 Revised Budget 1,602; Fiscal Year 2003/04 1,247; Fiscal Year 2004/05 1,168.
Percent Change: Fiscal Year 2001/02 Actual -1 point 6 percent; Fiscal Year 2002/03 Adopted Budget -3 point 8 percent; Fiscal Year 2002/03 Revised Budget -3 point 5 percent; Fiscal Year 2003/04 -22 point 2 percent; Fiscal Year 2004/05 -6 point 3 percent.
Light Rail Car Hours: Fiscal Year 2000/01 Actual 198; Fiscal Year 2001/02 Actual 172; Fiscal Year 2002/03 Adopted Budget 177; Fiscal Year 2002/03 Revised Budget 147; Fiscal Year 2003/04 127; Fiscal Year 2004/05 152.
Percent Change: Fiscal Year 2001/02 Actual -13 point1 percent; Fiscal Year 2002/03 Adopted Budget 2 point 9 percent; Fiscal Year 2002/03 Revised Budget -16 point 9 percent; Fiscal Year 2003/04 -13 point 6 percent; Fiscal Year 2004/05 19 point 7 percent.

The annualized savings (in thousand dollars) resulting from the 9 percent service reductions implemented April 2003 are:
Support Services: Fiscal Year 2003-04, $5,624; Fiscal Year 2004-05, $5,914.
Transportation & Maintenance: Fiscal Year 2003-04, $16,794; Fiscal Year 2004-05, $18,048.
Total: Fiscal Year 2003-04, $22,418; Fiscal Year 2004-05, $23,962.
The 21 percent service reduction proposed to be implemented in October 2003 will result in estimated savings for nine months of Fiscal Year 2003-04 and the annualized savings (in thousands) for Fiscal Year 2004-05 of:
Support Services: Fiscal Year 2003-04, $8,308; Fiscal Year 2004-05, $8,837.
Transportation & Maintenance: Fiscal Year 2003-04, $32,200; Fiscal Year 2004-05, $46,147.
Total: Fiscal Year 2003-04, $40,508; Fiscal Year 2004-05, $54,984.

We are continuing to work on developing the best service plan possible, given the resources available. We are also developing plans for reduction in support services. The total number of positions that will be eliminated will likely be between 300 to 400. Our ability to provide service of all types (example, bus, light rail, public information, and responsiveness to requests from the Board and the public) will be significantly and adversely affected. 

Wages & Benefits

A Table for Budgets for Salaries & Benefits (in thousand dollars) and Benefit Rates :
Salaries & Wages: Fiscal Year 2002-03 Adopted, $144,768; Fiscal Year 2002-03 Revised, $136,343; Fiscal Year 2003-04 Proposed, $125,628; Fiscal Year 2004-05 Proposed, $118,081.
Benefits: Fiscal Year 2002-03 Adopted, $83,120; Fiscal Year 2002-03 Revised, $92,664; v 2003-04 Proposed, $88,843; Fiscal Year 2004-05 Proposed, $89,114.
ATU benefit rate: Fiscal Year 2002-03 Adopted, 49 point percent; Fiscal Year 2002-03 Revised, 58 point 3 percent; Fiscal Year 2003-04 Proposed, 63.4 percent; Fiscal Year 2004-05 Proposed, 66 point 8 percent.
Non-ATU benefit rate: Fiscal Year 2002-03 Adopted, 39 percent; Fiscal Year 2002-03 Revised, 50 point 1 percent; Fiscal Year 2003-04 Proposed, 53 point 5 percent; Fiscal Year 2004-05 Proposed, 59 point 4 percent.

The Recommended Budget assumes that the A T U top of scale wage rates will increase 5percent on February 2, 2004. There is no provision in the budget for wage rate adjustments for S E I U, C E M A, T A E A and non-represented employees. The Recommended Budget does include provisions for step increases for all employees who are in pay progression. The benefit cost increases are driven by: health care cost; pension costs due to non-performance of plan assets; and, workers' compensation costs.

A Table for Budgeted Position Changes By Classification:  
Details will be provided at a later time for Fiscal Year 2002-03 Adopted, Fiscal Year 2002-03 Revised, Fiscal Year 2003-04 Proposed and Fiscal Year 2004-05 Proposed.

Inflation Rate
The Consumer Price Index (C P I) is the gauge of inflation at the retail or consumer level. CPI reached an annual rate of 1 point 63 percent for the San Francisco-Oakland-San Jose region in 2002. It was the year that the rate for the Bay Area plunged from the height in 2001 - 5 point 38 percent. This low rate is expected to continue as the Bay Area remains in a recessionary environment.

A line chart shows the monthly consumer price index from January 1990 through February 2003 and their year-to-year percentage changes:
January 1990, San Francisco Oakland San Jose area C P I 128 point 5; Year over year percentage change 3 point 6; United States all items C P I 127 point 4; year over year percentage change 5 point 2.
February 1990, San Francisco Oakland San Jose area C P I 129 point 2; Year over year percentage change 4 point 2; United States all items C P I 128; year over year percentage change 5 point 3.
March 1990, San Francisco Oakland San Jose area C P I 130; Year over year percentage change 3 point 3; United States all items C P I 128 point 7; year over year percentage change 5 point 2.
April 1990, San Francisco Oakland San Jose area C P I 130 point 7; Year over year percentage change 4 point 2; United States all items C P I 128 point 9; year over year percentage change 4 point 7.
May 1990, San Francisco Oakland San Jose area C P I 130 point 8; Year over year percentage change 3 point 6; United States all items C P I 129 point 2; year over year percentage change 4 point 4.
June 1990, San Francisco Oakland San Jose area C P I 131 point 6; Year over year percentage change 4 point 3; United States all items C P I 129 point 9; year over year percentage change 4 point 7.
July 1990, San Francisco Oakland San Jose area C P I 132 point 3; Year over year percentage change 3 point 8; United States all items C P I 130 point 4; year over year percentage change 4 point 8.
August 1990, San Francisco Oakland San Jose area C P I 133 point 1; Year over year percentage change 3 point 9; United States all items C P I 131 point 6; year over year percentage change 5 point 6.
September 1990, San Francisco Oakland San Jose area C P I 134; Year over year percentage change 5 point 7; United States all items C P I 132 point 7; year over year percentage change 6 point 2.
October 1990, San Francisco Oakland San Jose area C P I 134 point 6; Year over year percentage change 5 point 6; United States all items C P I 133 point 5; year over year percentage change 6 point 3.
November 1990, San Francisco Oakland San Jose area C P I 134 point 7; Year over year percentage change 5 point 9; United States all items C P I 133 point 8; year over year percentage change 6 point 3.
December 1990, San Francisco Oakland San Jose area C P I 135 point 1; Year over year percentage change 6; United States all items C P I 133 point 8; year over year percentage change 6 point 1.
January 1991, San Francisco Oakland San Jose area C P I 136 point 7; Year over year percentage change 6 point 4; United States all items C P I 134 point 6; year over year percentage change 5 point 7.
February 1991, San Francisco Oakland San Jose area C P I 136 point 1; Year over year percentage change 5 point 3; United States all items C P I 134 point 8; year over year percentage change 5 point 3.
March 1991, San Francisco Oakland San Jose area C P I 136 point 3; Year over year percentage change 4 point 8; United States all items C P I 135; year over year percentage change 4 point 9.
April 1991, San Francisco Oakland San Jose area C P I 135 point 8; Year over year percentage change 3 point 9; United States all items C P I 135 point 2; year over year percentage change 4 point 9.
May 1991, San Francisco Oakland San Jose area C P I 136 point 2; Year over year percentage change 4 point 1; United States all items C P I 135 point 6; year over year percentage change 5.
June 1991, San Francisco Oakland San Jose area C P I 137 point 6; Year over year percentage change 4 point 6; United States all items C P I 136; year over year percentage change 4 point 7.
July 1991, San Francisco Oakland San Jose area C P I 138 point 2; Year over year percentage change 4 point 5; United States all items C P I 136 point 2; year over year percentage change 4 point 4.
August 1991, San Francisco Oakland San Jose area C P I 139 point 1; Year over year percentage change 4 point 5; United States all items C P I 136 point 6; year over year percentage change 3 point 8.
September 1991, San Francisco Oakland San Jose area C P I 139 point 7; Year over year percentage change 4 point 3; United States all items C P I 137 point 2; year over year percentage change 3 point 4.
October 1991, San Francisco Oakland San Jose area C P I 139 point 6; Year over year percentage change 3 point 7; United States all items C P I 137 point 4; year over year percentage change 2 point 9.
November 1991, San Francisco Oakland San Jose area C P I 139 point 8; Year over year percentage change 3 point 8; United States all items C P I 137 point 8; year over year percentage change 3.
December 1991, San Francisco Oakland San Jose area C P I 139 point 8; Year over year percentage change 3 point 5; United States all items C P I 137 point 9; year over year percentage change 3 point 1.
January 1992, San Francisco Oakland San Jose area C P I 140 point 3; Year over year percentage change 2 point 6; United States all items C P I 138 point 1; year over year percentage change 2 point 6.
February 1992, San Francisco Oakland San Jose area C P I 141; Year over year percentage change 3 point 6; United States all items C P I 138 point 6; year over year percentage change 2 point 8.
March 1992, San Francisco Oakland San Jose area C P I 141 point 9; Year over year percentage change 4 point 1; United States all items C P I 139 point 3; year over year percentage change 3 point 2.
April 1992, San Francisco Oakland San Jose area C P I 141 point 6; Year over year percentage change 4 point 3; United States all items C P I 139 point 5; year over year percentage change 3 point 2.
May 1992, San Francisco Oakland San Jose area C P I 141 point 9; Year over year percentage change 4 point 2; United States all items C P I 139 point 7; year over year percentage change 3.
June 1992, San Francisco Oakland San Jose area C P I 141 point 9; Year over year percentage change 3 point 1; United States all items C P I 140 point 2; year over year percentage change 3 point 1.
July 1992, San Francisco Oakland San Jose area C P I 142 point 2; Year over year percentage change 2 point 9; United States all items C P I 140 point 5; year over year percentage change 3 point 2.
August 1992, San Francisco Oakland San Jose area C P I 142 point 7; Year over year percentage change 2 point 6; United States all items C P I 140 point 9; year over year percentage change 3 point 1.
September 1992, San Francisco Oakland San Jose area C P I 143 point 7; Year over year percentage change 2 point 9; United States all items C P I 141 point 3; year over year percentage change 3.
October 1992, San Francisco Oakland San Jose area C P I 144 point 3; Year over year percentage change 3 point 4; United States all items C P I 141 point 8; year over year percentage change 3 point 2.
November 1992, San Francisco Oakland San Jose area C P I 144 point 2; Year over year percentage change 3 point 1; United States all items C P I 142; year over year percentage change 3.
December 1992, San Francisco Oakland San Jose area C P I 144 point 3; Year over year percentage change 3 point 2; United States all items C P I 141 point 9; year over year percentage change 2 point 9.
January 1993, San Francisco Oakland San Jose area C P I 145 point 1; Year over year percentage change 3 point 4; United States all items C P I 142 point 6; year over year percentage change 3 point 3.
February 1993, San Francisco Oakland San Jose area C P I 145 point 5; Year over year percentage change 3 point 2; United States all items C P I 143 point 1; year over year percentage change 3 point 2.
March 1993, San Francisco Oakland San Jose area C P I 145 point 7; Year over year percentage change 2 point 7; United States all items C P I 143 point 6; year over year percentage change 3 point 1.
April 1993, San Francisco Oakland San Jose area C P I 146 point 8; Year over year percentage change 3 point 7; United States all items C P I 144; year over year percentage change 3 point 2.
May 1993, San Francisco Oakland San Jose area C P I 146 point 9; Year over year percentage change 3 point 5; United States all items C P I 144 point 2; year over year percentage change 3 point 2.
June 1993, San Francisco Oakland San Jose area C P I 146 point 1; Year over year percentage change 3; United States all items C P I 144 point 4; year over year percentage change 3.
July 1993, San Francisco Oakland San Jose area C P I 146 point 1; Year over year percentage change 2 point 7; United States all items C P I 144 point 4; year over year percentage change 2 point 8.
August 1993, San Francisco Oakland San Jose area C P I 146 point 2; Year over year percentage change 2 point 5; United States all items C P I 144 point 8; year over year percentage change 2 point 8.
September 1993, San Francisco Oakland San Jose area C P I 146 point 5; Year over year percentage change 1 point 9; United States all items C P I 145 point 1; year over year percentage change 2 point 7.
October 1993, San Francisco Oakland San Jose area C P I 147; Year over year percentage change 1 point 9; United States all items C P I 145 point 7; year over year percentage change 2 point 8.
November 1993, San Francisco Oakland San Jose area C P I 147 point 2; Year over year percentage change 2 point 1; United States all items C P I 145 point 8; year over year percentage change 2 point 7.
December 1993, San Francisco Oakland San Jose area C P I 147; Year over year percentage change 1 point 9; United States all items C P I 145 point 8; year over year percentage change 2 point 7.
January 1994, San Francisco Oakland San Jose area C P I 147 point 5; Year over year percentage change 1 point 7; United States all items C P I 146 point 2; year over year percentage change 2 point 5.
February 1994, San Francisco Oakland San Jose area C P I 147 point 4; Year over year percentage change 1 point 3; United States all items C P I 146 point 7; year over year percentage change 2 point 5.
March 1994, San Francisco Oakland San Jose area C P I 148 point 2; Year over year percentage change 1 point 7; United States all items C P I 147 point 2; year over year percentage change 2 point 5.
April 1994, San Francisco Oakland San Jose area C P I 148; Year over year percentage change 0 point 8; United States all items C P I 147 point 4; year over year percentage change 2 point 4.
May 1994, San Francisco Oakland San Jose area C P I 148 point 3; Year over year percentage change 1; United States all items C P I 147 point 5; year over year percentage change 2 point 3.
June 1994, San Francisco Oakland San Jose area C P I 148 point 1; Year over year percentage change 1 point 4; United States all items C P I 148; year over year percentage change 2 point 5.
July 1994, San Francisco Oakland San Jose area C P I 148 point 9; Year over year percentage change 1 point 9; United States all items C P I 148 point 4; year over year percentage change 2 point 8.
August 1994, San Francisco Oakland San Jose area C P I 149 point 4; Year over year percentage change 2 point 2; United States all items C P I 149; year over year percentage change 2 point 9.
September 1994, San Francisco Oakland San Jose area C P I 149 point 4; Year over year percentage change 2; United States all items C P I 149 point 4; year over year percentage change 3.
October 1994, San Francisco Oakland San Jose area C P I 149 point 4; Year over year percentage change 1 point 6; United States all items C P I 149 point 5; year over year percentage change 2 point 6.
November 1994, San Francisco Oakland San Jose area C P I 149 point 8; Year over year percentage change 1 point 8; United States all items C P I 149 point 7; year over year percentage change 2 point 7.
December 1994, San Francisco Oakland San Jose area C P I 149 point 4; Year over year percentage change 1 point 6; United States all items C P I 149 point 7; year over year percentage change 2 point 7.
January 1995, San Francisco Oakland San Jose area C P I 150 point 3; Year over year percentage change 1 point 9; United States all items C P I 150 point 3; year over year percentage change 2 point 8.
February 1995, San Francisco Oakland San Jose area C P I 150 point 5; Year over year percentage change 2 point 1; United States all items C P I 150 point 9; year over year percentage change 2 point 9.
March 1995, San Francisco Oakland San Jose area C P I 151 point 1; Year over year percentage change 2; United States all items C P I 151 point 4; year over year percentage change 2 point 9.
April 1995, San Francisco Oakland San Jose area C P I 151 point 5; Year over year percentage change 2 point 4; United States all items C P I 151 point 9; year over year percentage change 3 point 1.
May 1995, San Francisco Oakland San Jose area C P I 151 point 3; Year over year percentage change 2; United States all items C P I 152 point 2; year over year percentage change 3 point 2.
June 1995, San Francisco Oakland San Jose area C P I 151 point 7; Year over year percentage change 2 point 4; United States all items C P I 152 point 5; year over year percentage change 3.
July 1995, San Francisco Oakland San Jose area C P I 151 point 5; Year over year percentage change 1 point 7; United States all items C P I 152 point 5; year over year percentage change 2 point 8.
August 1995, San Francisco Oakland San Jose area C P I 151 point 5; Year over year percentage change 1 point 4; United States all items C P I 152 point 9; year over year percentage change 2 point 6.
September 1995, San Francisco Oakland San Jose area C P I 152 point 3; Year over year percentage change 1 point 9; United States all items C P I 153 point 2; year over year percentage change 2 point 5.
October 1995, San Francisco Oakland San Jose area C P I 152 point 6; Year over year percentage change 2 point 1; United States all items C P I 153 point 7; year over year percentage change 2 point 8.
November 1995, San Francisco Oakland San Jose area C P I 152 point 4; Year over year percentage change 1 point 7; United States all items C P I 153 point 6; year over year percentage change 2 point 6.
December 1995, San Francisco Oakland San Jose area C P I 152 point 1; Year over year percentage change 1 point 8; United States all items C P I 153 point 5; year over year percentage change 2 point 5.
January 1996, San Francisco Oakland San Jose area C P I 152 point 9; Year over year percentage change 1 point 7; United States all items C P I 154 point 4; year over year percentage change 2 point 7.
February 1996, San Francisco Oakland San Jose area C P I 153 point 2; Year over year percentage change 1 point 8; United States all items C P I 154 point 9; year over year percentage change 2 point 7.
March 1996, San Francisco Oakland San Jose area C P I 152 point 9; Year over year percentage change 1 point 2; United States all items C P I 155 point 7; year over year percentage change 2 point 8.
April 1996, San Francisco Oakland San Jose area C P I 153 point 9; Year over year percentage change 1 point 6; United States all items C P I 156 point 3; year over year percentage change 2 point 9.
May 1996, San Francisco Oakland San Jose area C P I 155 point 1; Year over year percentage change 2 point 5; United States all items C P I 156 point 6; year over year percentage change 2 point 9.
June 1996, San Francisco Oakland San Jose area C P I 155 point 2; Year over year percentage change 2 point 3; United States all items C P I 156 point 7; year over year percentage change 2 point 8.
July 1996, San Francisco Oakland San Jose area C P I 155 point 9; Year over year percentage change 2 point 9; United States all items C P I 157; year over year percentage change 3.
August 1996, San Francisco Oakland San Jose area C P I 155 point 6; Year over year percentage change 2 point 7; United States all items C P I 157 point 3; year over year percentage change 2 point 9.
September 1996, San Francisco Oakland San Jose area C P I 156 point 3; Year over year percentage change 2 point 6; United States all items C P I 157 point 8; year over year percentage change 3.
October 1996, San Francisco Oakland San Jose area C P I 156 point 9; Year over year percentage change 2 point 8; United States all items C P I 158 point 3; year over year percentage change 3.
November 1996, San Francisco Oakland San Jose area C P I 156 point 9; Year over year percentage change 3; United States all items C P I 158 point 6; year over year percentage change 3 point 3.
December 1996, San Francisco Oakland San Jose area C P I 156; Year over year percentage change 2 point 6; United States all items C P I 158 point 6; year over year percentage change 3 point 3.
January 1997, San Francisco Oakland San Jose area C P I 157; Year over year percentage change 2 point 7; United States all items C P I 159 point 1; year over year percentage change 3.
February 1997, San Francisco Oakland San Jose area C P I 157 point 9; Year over year percentage change 3 point 1; United States all items C P I 159 point 6; year over year percentage change 3.
March 1997, San Francisco Oakland San Jose area C P I 159 point 2; Year over year percentage change 4 point 1; United States all items C P I 160; year over year percentage change 2 point 8.
April 1997, San Francisco Oakland San Jose area C P I 159 point 6; Year over year percentage change 3 point 7; United States all items C P I 160 point 2; year over year percentage change 2 point 5.
May 1997, San Francisco Oakland San Jose area C P I 159 point 8; Year over year percentage change 3; United States all items C P I 160 point 1; year over year percentage change 2 point 2.
June 1997, San Francisco Oakland San Jose area C P I 160; Year over year percentage change 3 point 1; United States all items C P I 160 point 3; year over year percentage change 2 point 3.
July 1997, San Francisco Oakland San Jose area C P I 160 point 6; Year over year percentage change 3; United States all items C P I 160 point 5; year over year percentage change 2 point 2.
August 1997, San Francisco Oakland San Jose area C P I 161 point 2; Year over year percentage change 3 point 6; United States all items C P I 160 point 8; year over year percentage change 2 point 2.
September 1997, San Francisco Oakland San Jose area C P I 161 point 6; Year over year percentage change 3 point 4; United States all items C P I 161 point 2; year over year percentage change 2 point 2.
October 1997, San Francisco Oakland San Jose area C P I 162 point 5; Year over year percentage change 3 point 6; United States all items C P I 161 point 6; year over year percentage change 2 point 1.
November 1997, San Francisco Oakland San Jose area C P I 162 point 6; Year over year percentage change 3 point 6; United States all items C P I 161 point 5; year over year percentage change 1 point 8.
December 1997, San Francisco Oakland San Jose area C P I 162 point 6; Year over year percentage change 4 point 2; United States all items C P I 161 point 3; year over year percentage change 1 point 7.
January 1998, San Francisco Oakland San Jose area C P I 162 point 9; Year over year percentage change 3 point 8; United States all items C P I 161 point 6; year over year percentage change 1 point 6.
February 1998, San Francisco Oakland San Jose area C P I 163 point 2; Year over year percentage change 3 point 4; United States all items C P I 161 point 9; year over year percentage change 1 point 4.
March 1998, San Francisco Oakland San Jose area C P I 163 point 9; Year over year percentage change 3; United States all items C P I 162 point 2; year over year percentage change 1 point 4.
April 1998, San Francisco Oakland San Jose area C P I 164 point 6; Year over year percentage change 3 point 1; United States all items C P I 162 point 5; year over year percentage change 1 point 4.
May 1998, San Francisco Oakland San Jose area C P I 165 point 05; Year over year percentage change 3 point 3; United States all items C P I 162 point 8; year over year percentage change 1 point 7.
June 1998, San Francisco Oakland San Jose area C P I 165 point 5; Year over year percentage change 3 point 4; United States all items C P I 163; year over year percentage change 1 point 7.
July 1998, San Francisco Oakland San Jose area C P I 166 point 05; Year over year percentage change 3 point 4; United States all items C P I 163 point 2; year over year percentage change 1 point 7.
August 1998, San Francisco Oakland San Jose area C P I 166 point 6; Year over year percentage change 3 point 3; United States all items C P I 163 point 4; year over year percentage change 1 point 6.
September 1998, San Francisco Oakland San Jose area C P I 166 point 9; Year over year percentage change 3 point 3; United States all items C P I 163 point 6; year over year percentage change 1 point 5.
October 1998, San Francisco Oakland San Jose area C P I 167 point 2; Year over year percentage change 2 point 9; United States all items C P I 164; year over year percentage change 1 point 5.
November 1998, San Francisco Oakland San Jose area C P I 167 point 3; Year over year percentage change 2 point 9; United States all items C P I 164; year over year percentage change 1 point 5.
December 1998, San Francisco Oakland San Jose area C P I 167 point 4; Year over year percentage change 3; United States all items C P I 163 point 9; year over year percentage change 1 point 6.
January 1999, San Francisco Oakland San Jose area C P I 168 point 4; Year over year percentage change 3 point 4; United States all items C P I 164 point 3; year over year percentage change 1 point 7.
February 1999, San Francisco Oakland San Jose area C P I 169 point 4; Year over year percentage change 3 point 8; United States all items C P I 164 point 5; year over year percentage change 1 point 6.
March 1999, San Francisco Oakland San Jose area C P I 170 point 8; Year over year percentage change 4 point 2; United States all items C P I 165; year over year percentage change 1 point 7.
April 1999, San Francisco Oakland San Jose area C P I 172 point 2; Year over year percentage change 4 point 6; United States all items C P I 166 point 2; year over year percentage change 2 point 3.
May 1999, San Francisco Oakland San Jose area C P I 172; Year over year percentage change 4 point 2; United States all items C P I 166 point 2; year over year percentage change 2 point 1.
June 1999, San Francisco Oakland San Jose area C P I 171 point 8; Year over year percentage change 3 point 8; United States all items C P I 166 point 2; year over year percentage change 2.
July 1999, San Francisco Oakland San Jose area C P I 172 point 65; Year over year percentage change 4; United States all items C P I 166 point 7; year over year percentage change 2 point 1.
August 1999, San Francisco Oakland San Jose area C P I 173 point 5; Year over year percentage change 4 point 1; United States all items C P I 167 point 1; year over year percentage change 2 point 3.
September 1999, San Francisco Oakland San Jose area C P I not available; Year over year percentage change not available; United States all items C P I 167 point 9; year over year percentage change 2 point 6.
October 1999, San Francisco Oakland San Jose area C P I 175 point 2; Year over year percentage change 4 point 8; United States all items C P I 168 point 2; year over year percentage change 2 point 6.
November 1999, San Francisco Oakland San Jose area C P I not available; Year over year percentage change not available; United States all items C P I 168 point 3; year over year percentage change 2 point 6.
December 1999, San Francisco Oakland San Jose area C P I 174 point 5; Year over year percentage change 4 point 2; United States all items C P I 168 point 3; year over year percentage change 2 point 7.
January 2000, San Francisco Oakland San Jose area C P I not available; Year over year percentage change not available; United States all items C P I 168 point 7; year over year percentage change 2 point 7.
February 2000, San Francisco Oakland San Jose area C P I 176 point 5; Year over year percentage change 4 point 2; United States all items C P I 169 point 7; year over year percentage change 3 point 2.
March 2000, San Francisco Oakland San Jose area C P I not available; Year over year percentage change not available; United States all items C P I 171 point 1; year over year percentage change 3 point 7.
April 2000, San Francisco Oakland San Jose area C P I 178 point 6; Year over year percentage change 3 point 7; United States all items C P I 171 point 2; year over year percentage change 3.
May 2000, San Francisco Oakland San Jose area C P I not available; Year over year percentage change not available; United States all items C P I 171 point 3; year over year percentage change 3 point 1.
June 2000, San Francisco Oakland San Jose area C P I 179; Year over year percentage change 4 point 2; United States all items C P I 172 point 3; year over year percentage change 3 point 1.
July 2000, San Francisco Oakland San Jose area C P I not available; Year over year percentage change not available; United States all items C P I 172 point 6; year over year percentage change 3 point 5.
August 2000, San Francisco Oakland San Jose area C P I 181 point 7; Year over year percentage change 4 point 7; United States all items C P I 172 point 7; year over year percentage change 3 point 4.
September 2000, San Francisco Oakland San Jose area C P I not available; Year over year percentage change not available; United States all items C P I 173 point 7; year over year percentage change 3 point 5.
October 2000, San Francisco Oakland San Jose area C P I 183 point 4; Year over year percentage change 4 point 7; United States all items C P I 174; year over year percentage change 3 point 5.
November 2000, San Francisco Oakland San Jose area C P I not available; Year over year percentage change not available; United States all items C P I 174 point 1; year over year percentage change 3 point 5.
December 2000, San Francisco Oakland San Jose area C P I 184 point 1; Year over year percentage change 5 point 5; United States all items C P I 174; year over year percentage change 3 point 4.
January 2001, San Francisco Oakland San Jose area C P I not available; Year over year percentage change not available; United States all items C P I 175; year over year percentage change 3 point 8.
February 2001, San Francisco Oakland San Jose area C P I 187 point 9; Year over year percentage change 6 point 5; United States all items C P I 175 point 8; year over year percentage change 3 point 6.
March 2001, San Francisco Oakland San Jose area C P I not available; Year over year percentage change not available; United States all items C P I 176 point 2; year over year percentage change 3.
April 2001, San Francisco Oakland San Jose area C P I 189 point 1; Year over year percentage change 5 point 9; United States all items C P I 176 point 9; year over year percentage change 3 point 3.
May 2001, San Francisco Oakland San Jose area C P I not available; Year over year percentage change not available; United States all items C P I 177 point 7; year over year percentage change 3 point 7.
June 2001, San Francisco Oakland San Jose area C P I 190 point 9; Year over year percentage change 6 point 7; United States all items C P I 178; year over year percentage change 3 point 3.
July 2001, San Francisco Oakland San Jose area C P I not available; Year over year percentage change not available; United States all items C P I 177 point 5; year over year percentage change 2 point 8.
August 2001, San Francisco Oakland San Jose area C P I 191; Year over year percentage change 5 point 1; United States all items C P I 177 point 5; year over year percentage change 2 point 8.
September 2001, San Francisco Oakland San Jose area C P I not available; Year over year percentage change not available; United States all items C P I 178 point 3; year over year percentage change 2 point 7.
October 2001, San Francisco Oakland San Jose area C P I 191 point 7; Year over year percentage change 4 point 5; United States all items C P I 177 point 7; year over year percentage change 2 point 1.
November 2001, San Francisco Oakland San Jose area C P I not available; Year over year percentage change not available; United States all items C P I 177 point 4; year over year percentage change 1 point 9.
December 2001, San Francisco Oakland San Jose area C P I 190 point 6; Year over year percentage change 3 point 5; United States all items C P I 176 point 7; year over year percentage change 1 point 6.
January 2002, San Francisco Oakland San Jose area C P I not available; Year over year percentage change not available; United States all items C P I 177 point 1; year over year percentage change 1 point 1.
February 2002, San Francisco Oakland San Jose area C P I 191 point 3; Year over year percentage change 1 point 8; United States all items C P I 177 point 8; year over year percentage change 1 point 1.
March 2002, San Francisco Oakland San Jose area C P I not available; Year over year percentage change not available; United States all items C P I 178 point 8; year over year percentage change 1 point 5.
April 2002, San Francisco Oakland San Jose area C P I 193 point 0; Year over year percentage change 2 point 1; United States all items C P I 179 point 8; year over year percentage change 1 point 6.
May 2002, San Francisco Oakland San Jose area C P I not available; Year over year percentage change not available; United States all items C P I 179 point 8; year over year percentage change 1 point 2.
June 2002, San Francisco Oakland San Jose area C P I 193 point 2; Year over year percentage change 1 point 2; United States all items C P I 179.9; year over year percentage change 1 point 1.
July 2002, San Francisco Oakland San Jose area C P I not available; Year over year percentage change not available; United States all items C P I 180 point 1; year over year percentage change 1 point 5.
August 2002, San Francisco Oakland San Jose area C P I 193 point 5; Year over year percentage change 1 point 3; United States all items C P I 180 point 7; year over year percentage change 1 point 8.
September 2002, San Francisco Oakland San Jose area C P I not available; Year over year percentage change not available; United States all items C P I 181; year over year percentage change 1 point 5.
October 2002, San Francisco Oakland San Jose area C P I 194 point 3; Year over year percentage change 1 point 4; United States all items C P I 181 point 3; year over year percentage change 2 point 0.
November 2002, San Francisco Oakland San Jose area C P I not available; Year over year percentage change not available; United States all items C P I 181 point 3; year over year percentage change 2 point 2.
December 2002, San Francisco Oakland San Jose area C P I 193 point 2; Year over year percentage change 1 point 4; United States all items C P I 180 point 9; year over year percentage change 2 point 4.
January 2003, San Francisco Oakland San Jose area C P I not available; Year over year percentage change not available; United States all items C P I 181 point 7; year over year percentage change 2 point 6.
February 2003, San Francisco Oakland San Jose area C P I 197 point 7; Year over year percentage change 3 point 4; United States all items C P I 183 point 1; year over year percentage change 3 point 0.

We used 1 point 5 percent as the inflation factor to develop our Fiscal Year 2003-04 budget and 2.0percent for Fiscal Year 2004-05. Generally, we escalate the budget for non-labor cost items by the appropriate inflation factor to derive the budget number for the next year. However, most divisions chose not to do so. 

Contingency
In order to maintain a more efficient budgeting process, an individual division does not budget for contingency within its own budget.  An organization-wide contingency fund is established within the Office of the General Manager to fund urgent and unexpected programs or projects. During development of the Fiscal Year 1997-98 Budget, the Administration and Finance Committee recommended that V T A's budget policy should include the establishment of a contingency fund (that is, the General Manager's unallocated fund) at 3.0 percent of the operating budget. Most of the fund has been used to fund new capital projects. However, due to the current financial situation, we do not believe that we will launch any non-critical new capital projects and new programs in Fiscal Year 2003-04. Consequently, we should need only $2 million for contingency purposes. We will re-institute the 3 percent policy once our financial conditions improve. 

Reimbursements
This item is used primarily for two completely different purposes. The Maintenance Division mostly uses it to record internal repair cost transfers; the Development/Congestion Management, Construction and other support Divisions and Operations departments use it to accumulate capitalized labor costs for project cost monitoring and grant billing purposes. Total reimbursements budget in Fiscal Year 2003-04 is $20.3 million, an increase of $2.9 million from the Fiscal Year 2002-03 Revised Budget.

The Maintenance reimbursement budget was based upon an estimate of the amount of labor that is going to be capitalized into rebuilt parts in Fiscal Year 2003-04.  It is estimated that the net reimbursement for maintenance labor will be $4 million. This is about 30 percent below the current year trend and is line with the projected service reduction. 

For the Development/Congestion Management, Construction and other support Divisions and Operations departments, their reimbursement budgets were developed based upon estimated capital project activities and reimbursements history.  We expect reimbursements for the Development/Congestion Management and Construction divisions to increase by $1.6 million. The Operations Transportation Department will charge about $887,000 for rail activation work. Other divisions also increased their reimbursements estimate by $402,000. 

For labor costs incurred for the 1996 M B T I P, we will not recover 100 percent of our fully allocated expenditures. As stated in the Master Agreement with the County of Santa Clara, we agreed to seek only reimbursement for the direct costs but not indirect costs. As a result, we kept $3.7 million in the Non-Departmental cost center to reflect the indirect costs V T A will absorb.

We are in the process of developing a new overhead allocation plan and indirect cost rate proposal, which we will be submitting to the Federal Transit Administration for approval by June 30, 2003.

The new allocation will more appropriately distribute support costs between capital and operating programs.  The operating programs have been receiving a disproportionate share of the support costs.  Thus overstating the cost of operations and understating the costs of capital projects. When the new methodology is in place, it will be necessary to increase individual capital project budgets and decrease the operating budget to reflect the additional amount that will be reimbursed.

A D A Paratransit
Paratransit ridership continues to increase, but the rate of growth in program costs has slowed significantly.  Ridership grew by 7 point 4 percent in Fiscal Year 2002-03, while the total cost of service dropped by 7 percent compared to Fiscal Year 2001-02.  For Fiscal Year 2003-04, ridership is projected to increase by 5 percent over Fiscal Year 2002-03.  Correspondingly, program costs for Fiscal Year 2003-04 will increase but at a rate of only 4 point 1 percent due to operational improvements and efficiencies, which have reduced the cost per trip.  Ridership in Fiscal Year 2004-05 is expected to remain level with only a 3 percent increase in cost due to contractually obligated paratransit vendor rate increases.  

The leveling off of ridership growth and the substantial reduction in expenditures are due to the implementation of various cost-containment strategies, which were developed as part of the four-phased Paratransit Service Business Practices Improvement Plan.  During Fiscal Year 2002-03, Phase 1 and part of Phase 2 of the plan were implemented and included strategies to reduce program costs by improving operational efficiencies, consolidating vendor operations and renegotiating vendor contracts, reducing broker costs and raising revenues.  The remaining components of Phase 2 will be implemented at the beginning of Fiscal Year 2003-04 and are designed to control demand through an improved eligibility certification process.  Phase 3 of the plan will be implemented by October 2003 and will further contain costs through a better alignment of paratransit services with A D A requirements.  Phase 4 is currently being developed and may be implemented later in Fiscal Year 2003-04.  

To date, the Paratransit Service Business Practices Improvement Plan has proven to be effective at controlling paratransit costs.

ADA Trips (In thousands):
ADA Trips: Fiscal Year 2000/01 Actual 860; Fiscal Year 2001/02 Actual 1,019; Fiscal Year 2002/03 Adopted Budget 1,099; Fiscal Year 2002/03 Revised Budget 1,094; Fiscal Year 2003/04 1,148; Fiscal Year 2004/05 1,148.
Percent Change: Fiscal Year 2001/02 Actual 18 point 5 percent; Fiscal Year 2002/03 Adopted Budget 7 point 9 percent; Fiscal Year 2002/03 Revised Budget -0 point 5 percent; Fiscal Year 2003/04 4 point 9 percent; Fiscal Year 2004/05 0 percent.
ADA Operating Expense: Fiscal Year 2000/01 Actual 21,558; Fiscal Year 2001/02 Actual 33,122; Fiscal Year 2002/03 Adopted Budget 32,452; Fiscal Year 2002/03 Revised Budget 30,556; Fiscal Year 2003/04 31,797; Fiscal Year 2004/05 32,751.
Percent Change: Fiscal Year 2001/02 Actual 53 point 6 percent; Fiscal Year 2002/03 Adopted Budget -2 percent; Fiscal Year 2002/03 Revised Budget -5 point 8 percent; Fiscal Year 2003/04 4 point 1 percent; Fiscal Year 2004/05 3 percent.
Net Cost Per Trip: Fiscal Year 2000/01 Actual $25.07; Fiscal Year 2001/02 Actual $32.5; Fiscal Year 2002/03 Adopted Budget $29.53; Fiscal Year 2002/03 Revised Budget $27.93; Fiscal Year 2003/04 $27.7; Fiscal Year 2004/05 $28.53.
Percent Change: Fiscal Year 2001/02 Actual 29 point 7 percent; Fiscal Year 2002/03 Adopted Budget -9 point 2 percent; Fiscal Year 2002/03 Revised Budget -5 point 4 percent; Fiscal Year 2003/04 -0 point 8 percent; Fiscal Year 2004/05 3 percent.

Caltrain
Caltrain has yet to develop and approve a FISCAL YEAR 2003-04 operating and capital budget.  Caltrain projects coming online in the next Fiscal Year, that could affect service levels, include the initiation of Caltrain Express service and the opening of the Millbrae Station to connect with the BART S F O Extension.  Additionally, Caltrain is planning changes to its fare structure and implementing a proof-of-payment system that will modify fare collection and enforcement methods. The changes are scheduled for implementation in September 2003.  While this is projected to have a minimal immediate fiscal impact, Caltrain expects savings will be realized over time.  The changes will also assist in easier implementation of future fare increases.

V T A's current contribution for Caltrain is 42 percent of the net operating expenses, based on a ridership formula included in the Joint Powers Agreement.  V T A's Fiscal Year 2003-04 budget for Caltrain is based on capping V T A's contribution at Fiscal Year 2002-03 levels or $14.105 million.  This budget is escalated by 2 percent to $14.387 million for Fiscal Year 2004-05.  Also in response to our current financial conditions, V T A has included no local funds in Fiscal Year 2003-04 or Fiscal Year 2004-05 to support Caltrain capital projects but continues to program V T A's share of federal transit formula grants for Caltrain capital improvements.  

In developing the V T A budget, we have not fully programmed all of the estimated amount of FTA formula grants.  V T A and Caltrain staff are assessing the possibility swapping some amount of FTA funds for San Mateo County Transportation Authority sales tax funds.  The sales tax funds could then be used to provide the local funds Caltrain needs to match federal and state grants.  Currently, Caltrain is requesting $2.2 million in local matching funds from V T A.

Altamont Commuter Express (A C E)
A C E has yet to develop and approve a Fiscal Year 2003-04 operating and capital budget.  Additionally, the A C E Joint Powers Agreement will expire at the end of June 2003 if it is not extended by the three member agencies.  Staff from the three member agencies have been meeting to negotiate a new agreement.  A main V T A goal for the new agreement is to cap V T A's financial commitment at affordable levels, while providing the San Joaquin Regional Rail Commission the ability to increase service and the institutional control that they desire.  

V T A's proposed Fiscal Year 2003-04 budget for A C E includes $2.45 million for the train operating subsidy.  For Fiscal Year 2004-05 this budget is escalated by 2 percent to $2,535,500.  These are based on the current three round trip operation.  Member agency contributions are determined by a formula based on the total boarding riders in each county.  V T A's current contribution is 43 percent of the net expenses.  This amount also funds A C E's use of the San Jose Diridon and Santa Clara Stations.  $1.51 Million is also budgeted for the complete costs of providing A C E shuttles in Santa Clara County.  This amount is reimbursable from outside sources including A C E, Transportation Fund for Clean Air grants and employer match for certain shuttles.  V T A staff manages this program and contracts with a private carrier to provide the service on A C E's behalf.  

As with Caltrain, V T A has included no local funds in Fiscal Year 2003-04 or Fiscal Year 2004-05 to support A C E capital projects.


MAJOR FISCAL YEAR 2002-03 ACCOMPLISHMENTS

The following major accomplishments serve to provide a representative sample of the myriad of activities, projects, programs and efforts V T A has been involved in these past several months.  It is by no means a complete or comprehensive list.  Because of our fiscal crisis, it's all too easy to forget about or not recognize these activities.  In truth, while many of us have devoted the majority of our time and effort to V T A's finances, others have continued to do their work effectively, efficiently and in spite of this "fiscal cloud" hanging over them.  It is appropriate we recognize their efforts.

OPERATIONS DIVISION

OPERATIONS ADMINISTRATION:
Administration
- Negotiated and implemented a revised Attendance Program for ATU represented employees.  Automated significant portions of the program.  The program continues to provide incentives for employees who report to work on time, daily and a progressive disciplinary process for employees who incur absences.  

Protective Services
- Completed safety and security training for all bus operators.

Service Planning
- Developed a Service Reduction Plan needed to help bring Fiscal Year 2003/2004 operating budgets into balance.  Conducted 13 community meetings designed to present the "potential" service reductions to the public and gather community input.  Participated in C E Q A process for service reduction plan.

Operations Planning
- Completed installation of Advanced Communications System including new Operations Control Center, new fleet wide radio system with G P S tracking capability, automated next stop annunciation and automatic passenger counters.

Accessible Services
- Developed and implemented Phases 1 and 2 of the Paratransit Business Practices Improvement Plan.  Held a total of 29 public meetings as part of the Phase 2 development process.
- Increased overall paratransit productivity (passengers per hour) by 28 point 5 percent and reduced the net cost per passenger trip by 10 point 2 percent.  (This compares year to date figures from July through January 2002 to year to date figures from July through January 2003.)

TRANSPORTATION:
Transportation Administration
- Completed training of 829 operators and 126 administrative personnel in support of the implementation of Advance Communications Systems (A C S).  

Transportation Technical Training and Rail Activation
- Developed and delivered the new Articulated Coach operations training class; certified more than 250 operators, maintainers and supervisors.
- Developed and delivered the new Kinkisharyo light rail vehicle training and certification class; certified more than 200 rail operators, maintainers and supervisors.

MAINTENANCE:
- Accepted and placed 136 low floor Gillig buses into revenue service, received and commissioned 40 new 60-foot low floor articulated buses from New Flyer of America, Inc.  
- Awarded a contract for the procurement of three Zero Emissions Buses (hydrogen fuel cells).  
- Installed 24 new engines for the 9200 Bus Series Repower Program to reduce particulate matter emissions.
- Completed installation and commissioning of the Advanced Communication System (A C S) on all vehicles and began reliability testing of the system.  Also managed the maintenance and decommissioning of existing Motorola Metrocom radio system along with disposal of surplus equipment.
- Completed installation of Loronix C C T V (closed circuit television) on 326 buses and assumed maintenance responsibilities for all systems.
- Received and commissioned 32 new low floor light rail vehicles and began reliability demonstration testing.  In addition, accepted the Spare Parts Package for these vehicles entering the material data into the S A P Materials Master Data Base.
- Completed rail replacement of curved tracks immediately North of Children's Discovery Museum at San Carlos and Woz Way.  Also, completed rail replacement of tracks immediately South of Children's Discovery Museum at the Woz Way/Auzerais crossing.

ADMINISTRATIVE SERVICES DIVISION
- Achieved a cumulative savings of over $1 million through the Rail Construction Owner-Controlled Insurance Program.
- Completed the Administrative Services Reorganization resulting in a net saving of $284,295.
- Hosted a career event in April 2003 to assist laid-off employees in finding other employment. Eleven employers and 49 employees attended the April event. Twenty interviews and twelve hires resulted from the event.

CONSTRUCTION DIVISION
CAPITAL IMPROVEMENTS
Transit Operations
- Completed construction of essential elements of the North Division Reconstruction Project and advertised the balance of the completion contract.
- Resolved issues with City of San Jose and the San Jose Downtown Association and completed construction of Guadalupe L R V Facility Shop Expansion, Parts Storage Building and Maintenance Building Improvements 
- Completed design for raising the Guadalupe platforms and began construction on stations north of Ayr/Japantown. 
- Started construction of Cerone Division Improvements, Cerone Z E B Demonstration Project, and Guadalupe L R V Facility Expansion. 
- Improved 34 sites as part of the A D A Access Program. , 

1996 MEASURE B TRANSPORTATION IMPROVEMENT PROGRAM
Transit Program:
- Advertised and awarded all contracts for the Tasman East and Capitol Light Rail Projects.
- Advertised, award and started construction of the Stations and Park and Ride contracts for the Vasona Light Rail Project. 
- Resolved outstanding environmental and C P U C issues at the Hamilton Avenue light rail crossing, allowing for the award of the structures contract for the Vasona Light Rail Project.
- Completed construction on the pedestrian tunnel and light rail tunnel within the Caltrain Yard at Diridon train station for the Vasona Light Rail Project.
- Construction started on the double track from Tamien Station to Lick and the Santa Clara Station as part of the Caltrain Service Improvements Program. 
- Began design of the Palo Alto Transit Center improvements as part of the Caltrain Service Improvements Program.

Highway Program:
- Completed construction of widening of Route 101 in south San Jose and Morgan Hill.
- Continued construction of improvements as part of the I-880 Widening, the Route 85/101 (South) Interchange, and the Consolidated Biological Mitigation projects. 
- Completed two "early delivery" projects on Route 17 in Campbell: 17D and 17I.
- Completed construction of Phase 1A of Route 152 Improvements in Gilroy.
- Began construction of the Route 85/101 (North) Interchange project in Mountain View.
- Began construction of the Route 237/I-880 Interchange Stage C, Phase 2 Project in Milpitas.  

2000 MEASURE A TRANSIT IMPROVEMENT PROGRAM
- Issued Draft E I S/E I R for the Silicon Valley Rapid Transit Corridor Study of BART to the Federal Transit Administration for review before approval to release to public.
- Continued the conceptual studies for the Silicon Valley Rapid Transit Corridor Study of BART.
- Prepared design consultant R F P's for Preliminary Engineering for the Silicon Valley Rapid Transit Corridor Project.
- Continued the conceptual studies for the Downtown East Valley Project.
- Substantially completed the Downtown East Valley (Capitol Expressway segment) Conceptual Engineering phase and released the Draft E I R/E I S.
- Selected the Preferred Alternatives for Inclusion in the E I S/E I R for Downtown East Valley (Santa Clara/Alum Rock segment).

HIGHWAY PROJECT DEVELOPMENT & ADMINISTRATION
- Awarded construction contracts for 85/101S, 152-A, Combined Biological Mitigation Site - Phase 2, Route 17-D, Route 237/880, Route 85/101N, and the Route 101/Bailey Avenue Interchange.
- Completed the environmental approval process for the Route 152-A, 85/101N, Route 17-D, and 85/101 South.
- Initiated a test program of microgrinding on a one-mile segment of Route 85 to evaluate noise decibel reduction.
- Executed cooperative agreements with Caltrans for 87N, 87S, 85/101N, 237/880, 152, 880/Coleman Interchange projects and the Route 101/Bailey Avenue Interchange.

OTHER PROJECTS
- Began construction of the U.S. 101/Bailey Avenue Interchange project for the City of San Jose.
- Commenced utility relocation work for the I-880/Coleman Avenue Interchange project for the City of San Jose. 

DEVELOPMENT & CONGESTION MANAGEMENT DIVISION

CONGESTION MANAGEMENT PROGRAM
- Completed the Community Design and Transportation: Best Practices for Integrating Transportation and Land Use manual, a comprehensive design manual for communities in Santa Clara County, and distributed to Member Agencies, developers, governmental entities and other interested parties.
- Completed development of the Santa Clara Valley Bikeways Maps.
- Completed project selection criteria and process for local streets and county roads program and issued call-for-projects.
- Developed the $1.3 million 2003 Transportation Development Act Article 3 Bicycle and Pedestrian Expenditure Plan for Santa Clara County.
- Through the Pavement Management Program, administered and distributed to local jurisdictions approximately $16 million in 1996 M B T I P and Federal funds for street repair and other transportation projects.

TRANSIT PLANNING & DEVELOPMENT
- Secured Federal Grants of approximately $50 million (including Preventive Maintenance funds) and State T D A/S T A funds of $70 million.
- Completed, in cooperation with the San Jose Redevelopment Agency, the Diridon/Arena Strategic Development Plan.
- Maintained development income stream in excess of $700,000.

MARKETING & CUSTOMER SERVICE
- Responded to more than 510,000 telephone-based Customer Service requests regarding trip planning, complaint resolution, schedule information and V T A project information.
- Redesigned and produced new bus and light rail customer timeguides.
- Submitted the final report to the California Highway Patrol for the Yield to Bus demonstration project.
- Coordinated design and fabrication for 18 C O D E projects for 1996 Measure B rail projects.
- Improved and expanded public information liaison with area emergency response organizations.

FISCAL RESOURCES DIVISION

- Completed a Benchmark analysis to evaluate V T A's performance in comparison with other transit agencies. The results of this lead to the development of recommendations of the Business Review Team and subsequent consideration by the Ad-Hoc Committee.
- Completed negotiation and closed escrows for the purchase of the railroad corridor extending 15 miles from San Jose to Fremont.
- Completed an analysis evaluating the additional resources required for V T A to develop, operate and maintain the V T P 2020 Transit Projects.


FISCAL YEAR 2003-04 GOALS, PROJECTS AND MAJOR EFFORTS

Implement the V T A Board of Directors adopted recommendations as received from the Business Review Team and from the Ad Hoc Financial Stability Committee.

Business Review Team Recommendations:

1. V T A should establish a multi-year strategy to increase its farebox recovery ratio and average fare per boarding.  This will require a program of regular fare increases and reductions in fare discounts.  Assuming a $300 million budget for directly-operated service, each 5percent improvement in farebox recovery ratio would generate $15 million in additional revenue.
2. To address the increasing costs in health benefits, V T A should consider cost containment opportunities, including employee cost sharing which is a standard practice in the private sector. These changes could result in estimated savings of as much as $2.5 million to $3.5 million annually.
3. To address the rising costs of it's A D A Paratransit Program, V T A should consider modifying its existing service to reduce premium services, modify the eligibility verification process, and provides, as close as possible, only the level of service that is actually required by the A D A. Further, the Team concurred with the cost containment strategies V T A has set forth in their Paratransit Business Practice Improvement Plan. These changes could result in estimated savings of between $2.3 million and $3.5 million, depending on which options the Board approves.
4. V T A must continue to increase its marketing efforts to increase its market share and constantly evaluate services, making necessary modifications to assure efficiency and effectiveness. Each 1percent increase in V T A ridership would generate approximately 465,000 more boardings and approximately $280,000 in additional revenue.
5. For Joint Power Authorities, V T A's Board of Directors should be involved in the approval of the operating and the annual incremental capital budget, and further should approve in concept the next five years of operating, maintenance, and capital funding requirements.
6. The V T A Board adopt and adhere to a structured Fare Policy and Program that establishes "fair fares", encourages and sustains ridership growth and incorporates ongoing assessments of business efficiencies as part of V T A business practices.

Ad Hoc Financial Stability Committee Recommendations:
CONCLUSIONS
-In response to a dramatic and unprecedented decline in sales tax revenue to V T A, the Board and staff have made substantial in-roads toward the reduction of the near-term operating deficit by reducing expenses and improving productivity and efficiency.
-However, in spite of these efforts, V T A is still facing annual operating deficits averaging between $40 to 50 million beyond Fiscal Year 2004-05.
-As a consequence, V T A must urgently address the need to enhance revenues and reduce expenses in the very near term.  Additional delay in addressing this structural problem simply exacerbates the problem.

The Ad Hoc Committee has adopted the following recommendations.  Adoption, in whole or in part, by V T A's Board of Directors is pending. 

RECOMMENDATIONS
1. V T A should consider actively pursuing new local revenue sources that effectively diversify the revenue stream dedicated to V T A. (Committee has yet to recommend particular revenue sources.)  
2. V T A should support statewide legislative efforts to broaden the sales tax base, as well as to reduce the threshold for passing broad-based local transportation measures.  
3. V T A should seek to partner with other entities when seeking new revenue sources. 
4. V T A should implement management's recommended fare changes for FISCAL YEAR 2003-04. 
5. V T A should adopt and annually examine a formal policy guiding fares for the future, which includes setting a farebox recovery target of 20 percent to 25 percent, to be pursued over the coming two to three years. 
6. V T A should streamline the procedure for considering a fare change. 
7. V T A should work with labor representatives and health care providers to develop a strategy to contain health insurance costs.  
8. V T A should develop a strategy for negotiating with all four labor organizations in order of  agreement expiration (Local 715, C E M A and T A E A in 2003 and A T U in 2005) and address non-represented staff benefits in a timely manner. 
9. Implement staffing changes consistent with productivity improvements and service reductions. 
10. Re-examine and revise inventory levels required for reduced fleet levels.
11. Address excess fleet issue by halting rehabilitation of 92 Series buses, mothballing excess fleet and evaluating partial sale of excess fleet. 
12. V T A should examine work rules and resulting productive work hours per employee as part of both the current service restructuring and labor negotiations. 
13. V T A should carefully examine reductions in administrative costs both as part of potential productivity improvements and as part of the service restructuring effort.  
14. V T A should implement service reductions (restructuring) totalling 30 percent by October 2003. Such reductions should be made in line with the Board of Directors' adopted service standards.  The net effect of this reduction is to save between 22 and 27 percent  of total operating  expense.  
15. The V T A Board should receive an annual presentation on the nature and magnitude of V T A services and periodic reports on route productivity, comparisons to service standards and efforts to restore services previously reduced. 
16. V T A should review and revise its service standards in light of its financial condition.   These standards should address target and minimum acceptable measures of route productivity by route, service type, and overall system.  
17. V T A should revise and enforce staff time keeping policies and procedures to ensure maximum allocation of appropriate direct and indirect costs to capital projects.  
18. The Board of Directors should not adopt capital programs unless operations and maintenance costs have been identified and revenue sources are determined. Capital programs and service changes should be considered by the Board in the context of the budget process and revenue and cost projections. 
19. V T A should re-assess overhead cost composition to ensure all appropriate projects are defined as capital. 

OPERATIONS DIVISION

OPERTIONS ADMINISTRATION:
Protective Services
- Continue the expansion of the On Board Closed Circuit Television (C C T V) including the completion of the Remote Viewing Demonstration Project by establishing C C T V data viewing at the Eastridge Transit Center and the Chynoweth Light Rail Station.

Service Planning
- Transition from current manual passenger data collection system to an automated system using Automatic Passenger Counters (A P C's).  This new technology works in concert with the Advanced Communications System (A C S) on both bus and light rail vehicles.

Operations Planning
- Work with V T A's service partners, such as Caltrain, A C E, Highway 17 Express and Dumbarton Express to develop service and operating plans that meet passenger needs, while reflecting V T A's financial condition.

Accessible Services
- Contain paratransit program costs and overall utilization through a 20 percent reduction in enrollment rate.  Further contain paratransit program costs through the development and implementation of Phase 3 of the Paratransit Business Practices Improvement Plan.
1. September 1, 2003-modify minimum account balance policy
2. October 13, 2003-implement ADA service area
3. October 13, 2003-implement curb-to-curb service

TRANSPORTATION:
- Meet or exceed the goal of providing 99 point 25 percent of scheduled service for bus and 99 point 90 percent for rail.   Desired outcome is 99 point 25 percent or greater for bus and 99 point 90 percent for light rail.
- Plan and coordinate all Operations Division programs to effect the activation of the Tasman East/Capitol light rail extension.  Desired outcome is to successfully complete timeline goals in preparation for planned revenue service in Summer 2004.

MAINTENANCE:
- Continue the implementation of V T A's Clean Fuel Strategy.  This includes working with the California Air Resources Board on emissions reductions by developing and implementing a program for bus engine overhaul to ensure compliance with emission regulations, demonstrating and testing technology that has the potential to reduce NOx emissions by 70 percent or more on three buses operating in revenue service over a three-year period, the Zero Emission Bus Demonstration Project and continued participation in the California Fuel Cell Partnership.
- As a part of V T A's Clean Fuel Strategy, manage the contract for the purchase of three Zero Emission Buses (hydrogen fuel cell) and complete the installation of the hydrogen fueling station at the Cerone Division.  In addition, coordinate maintenance procedures and training development to support the Zero Emission Bus Demonstration Project and coordinate the delivery of Zero Emission Bus vendor training. 
- Continue to manage the contract for the construction and commissioning of 100 low floor light rail vehicles from Kinkisharyo and place into revenue service 48 of these low floor light rail vehicles.  In addition, complete the decommissioning of the 39 U T D C light rail vehicles, which includes scheduled preventive maintenance, exterior body rust removal and body repair if needed.  
- Provide support and conduct system integration testing in preparation for the opening of the Tasman East and Capitol Light Rail Corridors in early June 2004.  At this time, the Way, Power & Signal section of the Maintenance Department will assume maintenance responsibility for this light rail extension.  Additional responsibilities will include the maintenance of eight light rail stations, five substations, five Park & Ride Lots and 12.6 miles of track and overhead cantenary.

ADMINISTRATIVE SERVICES DIVISION
- Continue to reduce overall IT costs through:
o Complete knowledge transfer from consultants to V T A employees. 
o Development of IT Strategic Plan.
- Successfully negotiate equitable labor agreements with:
o Transportation Authority Engineers and Architects' Association.
o Service Workers Local 715 Service Employees International Union, A F L-C I O. Santa Clara Valley Transportation Authority Chapter
o County Employees Management Association, Santa Clara Valley Transportation Authority Chapter.

CONSTRUCTION DIVISION

CAPITAL IMPROVEMENTS
Transit Operations
- Complete construction of projects in the Facilities Improvement Program including: North and the Cerone O&R Division Improvements Project, and the Cerone Z E B Demonstration Project. 
- Complete construction of north line Guadalupe platform modifications to accommodate low floor light rail vehicles.

1996 MEASURE B TRANSPORTATION IMPROVEMENT PROGRAM
Transit Program:
- Continue construction of the Vasona Light Rail Project as scheduled and    budgeted.
- Complete the Tasman East and Capitol Light Rail Projects for revenue service by July 2004. 
- Construction completed on the double track from Tamien Station to Lick for the Caltrain Service Improvements Project.
- Complete construction on Caltrain Improvement Program projects to include:  Lawrence Bus/Shuttle & Parking Expansion; Palo Alto Transit Center Improvements and Santa Clara Parking & Bus Expansion.

Highway Program:
- Complete construction on the following contracts:  (a) I-880 Widening in San Jose; (b) Route 152 Improvements Phase A2 in Gilroy.
- Continued construction on the following contracts: (a) Route 85/101 (North) Interchange in Mountain View; (b) Route 85/101 (South) Interchange in San Jose; (c) Route 237/880 Interchange Stage C Phase 2; (d) Consolidated Biological Mitigation in San Jose.
- Begin construction on the following contracts: (a) Route 87 (S) HOV lanes in San Jose; (b) Route 87 (N) HOV lanes in San Jose; (c) Replacement planting/landscaping for Route 85/87 Interchange; (d) Replacement planting/landscaping for I-880 Widening.  

HIGHWAY PROJECT DEVELOPMENT & ADMINISTRATION
- Award construction contracts for 152-B, I-880/Coleman Avenue Interchange, Route 87 S, Route 87 N, and the River Oaks Bicycle/Pedestrian Bridge.
- Complete design of 87 N, 87 S, 880/Coleman Avenue Interchange, and the River Oaks Bicycle Bridge.
- Complete environmental clearance for 880/Coleman Avenue Interchange, Route 87 N, and Route 87 S.
- Begin design of Route 85 Noise Mitigation Project.
- Commence preliminary engineering/environmental approval activities for highway projects selected by the V T A Board in implementation of VTP 2020.
- Develop the 10-year project list for local streets and roads program
 
OTHER PROJECTS
- Continue construction of the U.S. 101/Bailey Avenue Interchange project for the City of San Jose.
- Begin interchange construction work for the I-880/Coleman Avenue Interchange project for the City of San Jose.
- Begin construction of the River Oaks Bicycle/Pedestrian Bridge in San Jose and Santa Clara. 

DEVELOPMENT & CONGESTION MANAGEMENT DIVISION

CONGESTION MANAGEMENT PROGRAM
- Develop the 2003 Congestion Management Program.
- Update Valley Transportation Plan 2020 (V T P 2020), the comprehensive multimodal transportation plan for Santa Clara County.
- Continue and expand the outreach and education for the Community Design and Transportation program, to ensure that all cities adopt the guidelines
- Develop the Capital Improvement Program (C I P) element of the 2003 Congestion Management Program (C M P).

TRANSIT PLANNING & DEVELOPMENT
- Complete Conceptual Engineering and Final E I R/E I S for the S V R T C (BART Extension) Project.
- Complete Conceptual Engineering and Final E I R/E I S for the Downtown East Valley (Capitol Expressway segment) Project.
- Complete and release Draft EIR/EIS for the Downtown East Valley (Santa Clara/Alum Rock segment) Project.

MARKETING & CUSTOMER SERVICE
- Coordinate design, fabrication, and installation of more than 40 C O D E projects within 1996 Measure B light rail and highway projects 
- Implement and evaluate comprehensive strategic marketing plan in accordance with V T A's financial condition and service levels.

FISCAL RESOURCES DIVISION

- Complete a subleasing transaction involving V T A's Light Rail vehicles to Salt Lake City and Sacramento Regional Transit District.
- Complete a series of two lease to service contracts financial transaction for Low Floor Light Rail vehicles.
- Complete lease to service contract financial transaction on buses.
- Complete refinancing of Measure A repayment obligation. 

OFFICE OF THE GENERAL MANAGER
RESPONSIBILITIES
The General Manager's Office is responsible for the management of the Santa Clara Valley Transportation Authority (V T A) according to the policies adopted by the Board of Directors.  General duties include the development of program and policy alternatives for consideration by the Board and management of the authority's staff activities.  Specific functions within the General Manager's Office include support of the Board through the Board Secretary, policy development, strategic planning, and intergovernmental and business relations.

MAJOR PROGRAMS
The Office of the Board Secretary is responsible for all Board-related activities.  These include the preparation and publication of agendas, notices, minutes of meetings, hearings, and other matters within the jurisdiction of the Board. Additionally, the Record Management and Document Control department maintains documents and prepares "as-built" plans for most of the large capital projects and is responsible for V T A's document reproduction center.

The Chief of Staff assists and participates in the planning, organizing, and facilitating the activities of the General Manager. In this capacity, the Chief of Staff facilitates and coordinates with Executive Management on items critical to V T A including strategic planning and analysis, program development, and internal and external policy development.

Government Affairs is primarily responsible for developing and coordinating V T A's legislative and intergovernmental relations programs.  Specifically, it analyzes the impact of state and federal legislative issues, and develops and coordinates V T A's strategy for responding to these issues.  It manages V T A's legislative advocacy efforts in Washington, D.C. and in Sacramento.  Government Affairs also coordinates V T A's outreach efforts to the local community, the cities, and respective state and federal legislative delegations.

Policy and Programs serves as V T A's principal liaison with Joint Powers Boards (Caltrain, ACE, and Capitol Corridor) and Santa Clara County's representatives to MTC.  Policy and Programs supports V T A's liaison activities with business organizations, other community groups within the county, and to some extent, specific governmental institutions.  Various special projects and programs (both internal and external) are also coordinated out of the General Manager's Office.

The following is a description of the organizational chart for the Office of the General Manager:
The Board of Directors is supported by the General Manager, Peter M. Cipolla. 

Under General Manager, Peter M. Cipolla:
Board Secretary, Sandra Weymouth.
Chief of Staff, Denise Daly.

Under Board Secretary:
Board Office.
Record Management and Document Control, Tim Ellenberger, Manage.

Under Chief of Staff:
Administration.
Policy and Program, Frank Sharpless, Manager.
Government Affairs, Kurt Evans, Manager.

Position number will be provided later. 

OFFICE OF GENERAL MANAGER
(In thousands)
Wages & Salaries:  Fiscal Year 2001/02 Actual 1,919; Fiscal Year 2002/03 Adopted Budget 2,152; Fiscal Year 2002/03 Revised Estimate 2,063; Fiscal Year 2003/04 Proposed Budget 2,142; Fiscal Year 2004/05 Proposed Budget 2,113
Benefits: :  Fiscal Year 2001/02 Actual 770; Fiscal Year 2002/03 Adopted Budget 836; Fiscal Year 2002/03 Revised Estimate 980; Fiscal Year 2003/04 Proposed Budget 1,142; Fiscal Year 2004/05 Proposed Budget 1,251
Materials & Supplies:   Fiscal Year 2001/02 Actual 3; Fiscal Year 2002/03 Adopted Budget 17; Fiscal Year 2002/03 Revised Estimate 17; Fiscal Year 2003/04 Proposed Budget 9; Fiscal Year 2004/05 Proposed Budget 9
Professional & Special Services:   Fiscal Year 2001/02 Actual 333; Fiscal Year 2002/03 Adopted Budget 373; Fiscal Year 2002/03 Revised Estimate 373; Fiscal Year 2003/04 Proposed Budget 337; Fiscal Year 2004/05 Proposed Budget 339
Other Services:    Fiscal Year 2001/02 Actual 251; Fiscal Year 2002/03 Adopted Budget 351; Fiscal Year 2002/03 Revised Estimate 443; Fiscal Year 2003/04 Proposed Budget 414; Fiscal Year 2004/05 Proposed Budget 422
Office Expense:  Fiscal Year 2001/02 Actual 43; Fiscal Year 2002/03 Adopted Budget 30; Fiscal Year 2002/03 Revised Estimate 30; Fiscal Year 2003/04 Proposed Budget 23; Fiscal Year 2004/05 Proposed Budget 24
Employee Related Expense:  Fiscal Year 2001/02 Actual 143; Fiscal Year 2002/03 Adopted Budget 163; Fiscal Year 2002/03 Revised Estimate 163; Fiscal Year 2003/04 Proposed Budget 154; Fiscal Year 2004/05 Proposed Budget 156
Leases & Rents:  Fiscal Year 2001/02 Actual 157; Fiscal Year 2002/03 Adopted Budget 148; Fiscal Year 2002/03 Revised Estimate 280; Fiscal Year 2003/04 Proposed Budget 289; Fiscal Year 2004/05 Proposed Budget 295
Contingency:  Fiscal Year 2001/02 Actual 0; Fiscal Year 2002/03 Adopted Budget 5,000; Fiscal Year 2002/03 Revised Estimate 1,927; Fiscal Year 2003/04 Proposed Budget 2,000; Fiscal Year 2004/05 Proposed Budget 2,000
Miscellaneous:  Fiscal Year 2001/02 Actual 306; Fiscal Year 2002/03 Adopted Budget 462; Fiscal Year 2002/03 Revised Estimate 422; Fiscal Year 2003/04 Proposed Budget 392; Fiscal Year 2004/05 Proposed Budget 397
Contribution to Other Agencies:  Fiscal Year 2001/02 Actual 1; Fiscal Year 2002/03 Adopted Budget 0; Fiscal Year 2002/03 Revised Estimate 0; Fiscal Year 2003/04 Proposed Budget 0; Fiscal Year 2004/05 Proposed Budget 0
Other Expense:  Fiscal Year 2001/02 Actual 0; Fiscal Year 2002/03 Adopted Budget 34; Fiscal Year 2002/03 Revised Estimate 685; Fiscal Year 2003/04 Proposed Budget 18; Fiscal Year 2004/05 Proposed Budget 343
Total Expense:  Fiscal Year 2001/02 Actual 3,926; Fiscal Year 2002/03 Adopted Budget 9,566; Fiscal Year 2002/03 Revised Estimate 7,383; Fiscal Year 2003/04 Proposed Budget 6,920; Fiscal Year 2004/05 Proposed Budget 7,349
Reimbursements:  Fiscal Year 2001/02 Actual -473; Fiscal Year 2002/03 Adopted Budget -131; Fiscal Year 2002/03 Revised Estimate -313; Fiscal Year 2003/04 Proposed Budget -403; Fiscal Year 2004/05 Proposed Budget -315
Net Total:  Fiscal Year 2001/02 Actual 3,453; Fiscal Year 2002/03 Adopted Budget 9,435; Fiscal Year 2002/03 Revised Estimate 7,070; Fiscal Year 2003/04 Proposed Budget 6,517; Fiscal Year 2004/05 Proposed Budget 7,034

MAJOR BUDGETARY CHANGES
Cost Reduction and Efficiency Measures
Details regarding cost reductions will be provided at a later date.

Contingency
During development of the Fiscal Year 1997-98 Budget, the Administration and Finance Committee recommended that V T A's budget policy should include the establishment of a contingency fund (that is, the General Manager's unallocated fund) at 3.0percent of the operating budget. This fund is used to fund urgent and unexpected programs or projects not specifically identified and budgeted. Recognizing that V T A has reduced programs and is refraining from launching new non-critical capital projects, we believe that a contingency fund of $2 million for Fiscal Year 2003-04 and Fiscal Year 2004-05 will be sufficed to meet essential unanticipated expenses. This represents a 60 percent reduction from the Fiscal Year 2002-03 Adopted Budget when we budgeted $5 million for the entire year. We will re-institute the 3 percent policy once our financial conditions improve.

Miscellaneous Expense
V T A was responsible for paying the County Registrar of Voters for costs associated with the November 2002 Transit Advisory Ballot Measure, at a cost of $402,000 in FISCAL YEAR 2002-03. We have also included the estimated cost of $325,000 for a November 2004 ballot measure in FISCAL YEAR 2004-05.


OFFICE OF THE GENERAL COUNSEL

RESPONSIBILITIES
The General Counsel's Office provides legal advice and counsel to all of the divisions and departments, as well as to the General Manager and the Board of Directors, with respect to all facets of V T A's operations, including the Congestion Management Program.  

MAJOR ACTIVITIES
1. Assist divisions and departments to achieve their goals by providing legal advice and support:
- In connection with labor/employment issues, including representing V T A in litigation and in arbitration hearings; 
- Concerning contract, real estate, construction and public agency law issues;
- By reviewing, analyzing and drafting administrative policies and procedures and legislation;
- By representing V T A in other litigation.
3. Provide legal support to the V T A-A T U Pension Board and to the V T A Deferred Compensation Committee.
4. Retain and supervise outside counsels who provide specialized legal services.

The following is a description of the organizational chart for the Office of the General Counsel:
The Board of Directors is supported by the General Counsel, Suzanne Gifford.

Under General Counsel, Suzanne Gifford:
Assistant General Counsel, Richard Katzman and Kevin Allmand.
Attorneys.
Support Positions.

Position number will be provided later. 

OFFICE OF GENERAL COUNSEL
(In thousands)
Wages & Salaries:  Fiscal Year 2001/02 Actual 796; Fiscal Year 2002/03 Adopted Budget 920; Fiscal Year 2002/03 Revised Estimate 829; Fiscal Year 2003/04 Proposed Budget 956; Fiscal Year 2004/05 Proposed Budget 980
Benefits:  Fiscal Year 2001/02 Actual 311; Fiscal Year 2002/03 Adopted Budget 359; Fiscal Year 2002/03 Revised Estimate 371; Fiscal Year 2003/04 Proposed Budget 512; Fiscal Year 2004/05 Proposed Budget 582
Professional & Special Services:  Fiscal Year 2001/02 Actual 112; Fiscal Year 2002/03 Adopted Budget 207; Fiscal Year 2002/03 Revised Estimate 207; Fiscal Year 2003/04 Proposed Budget 207; Fiscal Year 2004/05 Proposed Budget 211
Other Services:  Fiscal Year 2001/02 Actual 1; Fiscal Year 2002/03 Adopted Budget 0; Fiscal Year 2002/03 Revised Estimate 0; Fiscal Year 2003/04 Proposed Budget 0; Fiscal Year 2004/05 Proposed Budget 0
Office Expense:  Fiscal Year 2001/02 Actual 2; Fiscal Year 2002/03 Adopted Budget 2; Fiscal Year 2002/03 Revised Estimate 2; Fiscal Year 2003/04 Proposed Budget 2; Fiscal Year 2004/05 Proposed Budget 2
Employee Related Expense:  Fiscal Year 2001/02 Actual 14; Fiscal Year 2002/03 Adopted Budget 10; Fiscal Year 2002/03 Revised Estimate 10; Fiscal Year 2003/04 Proposed Budget 7; Fiscal Year 2004/05 Proposed Budget 8
Miscellaneous:  Fiscal Year 2001/02 Actual 21; Fiscal Year 2002/03 Adopted Budget 24; Fiscal Year 2002/03 Revised Estimate 24; Fiscal Year 2003/04 Proposed Budget 19; Fiscal Year 2004/05 Proposed Budget 20
Total Expense:  Fiscal Year 2001/02 Actual 1,257; Fiscal Year 2002/03 Adopted Budget 1,522; Fiscal Year 2002/03 Revised Estimate 1,443; Fiscal Year 2003/04 Proposed Budget 1,703; Fiscal Year 2004/05 Proposed Budget 1,803
Reimbursements:  Fiscal Year 2001/02 Actual -493; Fiscal Year 2002/03 Adopted Budget -282; Fiscal Year 2002/03 Revised Estimate -282; Fiscal Year 2003/04 Proposed Budget -282; Fiscal Year 2004/05 Proposed Budget -287
Net Total:  Fiscal Year 2001/02 Actual 764; Fiscal Year 2002/03 Adopted Budget 1,240; Fiscal Year 2002/03 Revised Estimate 1,161; Fiscal Year 2003/04 Proposed Budget 1,421; Fiscal Year 2004/05 Proposed Budget 1,516

MAJOR BUDGETARY CHANGES
Salaries and Benefits
Counsel will realize $91,000 in salary savings in Fiscal Year 2002-03 due to vacancies. However, the increase in benefits trims the savings to $79,000. 

Counsel anticipates filling all vacancies in Fiscal Year 2003-04, so this budget reflects a fully staffed department. Additionally, the budget assumptions for benefits have increased over the past year. The major causes of this increase are increased health care costs for employees and retirees, as well as increased pension plan contribution costs. These increases result in a cost increase of $268,000.


OPERATIONS DIVISION - ADMINISTRATION

RESPONSIBILITIES
The Operations Division is responsible for delivering safe, courteous and reliable service to the residents of Santa Clara County.  This Division consists of three functional units: Administration, Transportation, and Maintenance.  Administration consists of the Chief Operating Officer's administrative unit, Service and Operations Planning and Protective Services departments.

MAJOR PROGRAMS
Service and Operations Planning consists of Service Planning, Accessible Services and Operations Planning.  Service Planning is responsible for planning, scheduling and monitoring V T A's 69 bus routes and light rail service.  Accessible Services ensures compliance with the Americans with Disabilities Act (A D A) and manages the paratransit program.  Operations Planning has responsibility for the operation of light rail and Altamont Commuter Express (A C E) shuttles, and coordination of A C E, Caltrain, Dumbarton Bridge and Highway 17 Express services.  In addition, Operations Planning has responsibility for passenger facility planning, coordination of the shelter and bus stop programs, monitoring Tamien Child Care Center operations, analysis and reporting of transit system performance, and management of the Advanced Communication System (A C S) project.

Protective Services provides security for V T A bus and light rail service and facilities.  This department coordinates law enforcement activities with the contracted Santa Clara County Sheriff unit and Pinkerton Security, a private security contractor.  Protective Services is also responsible for revenue collection and protection, management of V T A's Lost & Found program, the Vandalism Abatement program, employee security systems and fare inspection on light rail. 


The following is a description of the organizational chart for Operations Administration:
The Chief Operating Officer, Frank T. Martin, is supported by 
Administration.
Service & Operations Planning, Mike Aro, Deputy Director.
Protective Services, Ray Frank, Chief of Security

Under Service and Operations Planning, Mike Aro, Deputy Director:
Accessible Services, George Tacke, Manager.
Operations Planning, Jim Unites, Manager.
Service Planning, Bill Capps, Manager.

Under Protective Services, Ray Frank, Chief of Security:
Administration. 
Fare Inspection. 
Sheriff's Contract.
Security Contract.

Position number will be provided later. 

OPERATIONS - ADMINISTRATION
(In thousands)
Wages & Salaries:  Fiscal Year 2001/02 Actual 3,316; Fiscal Year 2002/03 Adopted Budget 3,473; Fiscal Year 2002/03 Revised Estimate 3,479; Fiscal Year 2003/04 Proposed Budget 3,231; Fiscal Year 2004/05 Proposed Budget 3,077
Benefits: Fiscal Year 2001/02 Actual 1,381; Fiscal Year 2002/03 Adopted Budget 1,487; Fiscal Year 2002/03 Revised Estimate 1,795; Fiscal Year 2003/04 Proposed Budget 1,879; Fiscal Year 2004/05 Proposed Budget 1,979
Materials & Supplies: Fiscal Year 2001/02 Actual 176; Fiscal Year 2002/03 Adopted Budget 235; Fiscal Year 2002/03 Revised Estimate 193; Fiscal Year 2003/04 Proposed Budget 172; Fiscal Year 2004/05 Proposed Budget 172
Security Wages & Salaries:  Fiscal Year 2001/02 Actual 9,909; Fiscal Year 2002/03 Adopted Budget 9,473; Fiscal Year 2002/03 Revised Estimate 9,383; Fiscal Year 2003/04 Proposed Budget 7,904; Fiscal Year 2004/05 Proposed Budget 8,499
Professional & Special Services:  Fiscal Year 2001/02 Actual 80; Fiscal Year 2002/03 Adopted Budget 132; Fiscal Year 2002/03 Revised Estimate 124; Fiscal Year 2003/04 Proposed Budget 853; Fiscal Year 2004/05 Proposed Budget 1,353
Other Services:  Fiscal Year 2001/02 Actual 542; Fiscal Year 2002/03 Adopted Budget 56; Fiscal Year 2002/03 Revised Estimate 36; Fiscal Year 2003/04 Proposed Budget 36; Fiscal Year 2004/05 Proposed Budget 36
Utilities:  Fiscal Year 2001/02 Actual 57; Fiscal Year 2002/03 Adopted Budget 66; Fiscal Year 2002/03 Revised Estimate 61; Fiscal Year 2003/04 Proposed Budget 61; Fiscal Year 2004/05 Proposed Budget 61
Data Processing: Fiscal Year 2001/02 Actual 26; Fiscal Year 2002/03 Adopted Budget 145; Fiscal Year 2002/03 Revised Estimate 145; Fiscal Year 2003/04 Proposed Budget 145; Fiscal Year 2004/05 Proposed Budget 145
Office Expense:  Fiscal Year 2001/02 Actual 69; Fiscal Year 2002/03 Adopted Budget 73; Fiscal Year 2002/03 Revised Estimate 64; Fiscal Year 2003/04 Proposed Budget 73; Fiscal Year 2004/05 Proposed Budget 70
Employee Related Expense:  Fiscal Year 2001/02 Actual 40; Fiscal Year 2002/03 Adopted Budget 66; Fiscal Year 2002/03 Revised Estimate 66; Fiscal Year 2003/04 Proposed Budget 52; Fiscal Year 2004/05 Proposed Budget 52
Leases & Rents :  Fiscal Year 2001/02 Actual 71; Fiscal Year 2002/03 Adopted Budget 153; Fiscal Year 2002/03 Revised Estimate 132; Fiscal Year 2003/04 Proposed Budget 131; Fiscal Year 2004/05 Proposed Budget 131
Miscellaneous:  Fiscal Year 2001/02 Actual 4; Fiscal Year 2002/03 Adopted Budget 506; Fiscal Year 2002/03 Revised Estimate 506; Fiscal Year 2003/04 Proposed Budget 506; Fiscal Year 2004/05 Proposed Budget 506
ADA :  Fiscal Year 2001/02 Actual 33,122; Fiscal Year 2002/03 Adopted Budget 32,452; Fiscal Year 2002/03 Revised Estimate 30,556; Fiscal Year 2003/04 Proposed Budget 31,797; Fiscal Year 2004/05 Proposed Budget 32,751
Caltrain:  Fiscal Year 2001/02 Actual 14,897; Fiscal Year 2002/03 Adopted Budget 14,105; Fiscal Year 2002/03 Revised Estimate 14,105; Fiscal Year 2003/04 Proposed Budget 14,105; Fiscal Year 2004/05 Proposed Budget 14,,387
Caltrain Capital Contribution:  Fiscal Year 2001/02 Actual 0; Fiscal Year 2002/03 Adopted Budget 2500; Fiscal Year 2002/03 Revised Estimate 4041; Fiscal Year 2003/04 Proposed Budget 0; Fiscal Year 2004/05 Proposed Budget 0
Light Rail Shuttles:  Fiscal Year 2001/02 Actual 1,237; Fiscal Year 2002/03 Adopted Budget 1,340; Fiscal Year 2002/03 Revised Estimate 1,223; Fiscal Year 2003/04 Proposed Budget 1,000; Fiscal Year 2004/05 Proposed Budget 1,000
Altamont Commuter Express:  Fiscal Year 2001/02 Actual 3,160; Fiscal Year 2002/03 Adopted Budget 5,100; Fiscal Year 2002/03 Revised Estimate 3,960; Fiscal Year 2003/04 Proposed Budget 3,960; Fiscal Year 2004/05 Proposed Budget 4,034
Highway 17 Express:  Fiscal Year 2001/02 Actual 520; Fiscal Year 2002/03 Adopted Budget 587; Fiscal Year 2002/03 Revised Estimate 425; Fiscal Year 2003/04 Proposed Budget 440; Fiscal Year 2004/05 Proposed Budget 440
Dumbarton Express: Fiscal Year 2001/02 Actual 246; Fiscal Year 2002/03 Adopted Budget 250; Fiscal Year 2002/03 Revised Estimate 329; Fiscal Year 2003/04 Proposed Budget 355; Fiscal Year 2004/05 Proposed Budget 355
Contribution to Other Agencies:  Fiscal Year 2001/02 Actual 256; Fiscal Year 2002/03 Adopted Budget 278; Fiscal Year 2002/03 Revised Estimate 273; Fiscal Year 2003/04 Proposed Budget 265; Fiscal Year 2004/05 Proposed Budget 265
Other Expense:  Fiscal Year 2001/02 Actual 1,208; Fiscal Year 2002/03 Adopted Budget 6; Fiscal Year 2002/03 Revised Estimate 6; Fiscal Year 2003/04 Proposed Budget 6; Fiscal Year 2004/05 Proposed Budget 6
Total Expense:  Fiscal Year 2001/02 Actual 70,317; Fiscal Year 2002/03 Adopted Budget 72,483; Fiscal Year 2002/03 Revised Estimate 70,902; Fiscal Year 2003/04 Proposed Budget 66,971; Fiscal Year 2004/05 Proposed Budget 69,319
Reimbursements:  Fiscal Year 2001/02 Actual -2; Fiscal Year 2002/03 Adopted Budget 0; Fiscal Year 2002/03 Revised Estimate 0; Fiscal Year 2003/04 Proposed Budget 0; Fiscal Year 2004/05 Proposed Budget 0
Net Total: Fiscal Year 2001/02 Actual 70,317; Fiscal Year 2002/03 Adopted Budget 72,483; Fiscal Year 2002/03 Revised Estimate 70,902; Fiscal Year 2003/04 Proposed Budget 66,971; Fiscal Year 2004/05 Proposed Budget 69,319

MAJOR BUDGETARY CHANGES	
Accessible Services
V T A, Outreach and a consultant team have developed various options for improving paratransit operations and controlling costs. Staff has developed a four-phased Paratransit Service Business Practices Improvement Plan.  The plan includes strategies to improve productivity, increase revenue, decrease costs and control demand.  As a result of the implementation of the plan, the Revised Fiscal Year 2002-03 paratransit budget has been reduced by approximately $ 1.9 million from the Fiscal Year 2002-03 Adopted Budget.  The Recommended Fiscal Year 2003-04 budget for our accessible services is estimated at $31.8 million. The Fiscal Year 2004-05 budget is expected to be $32.7 million. The plan requires two additional staff: a Senior Management Analyst and an Accessible Service Representative. The annual wages and benefits for these two positions are estimated at $199,000.

Service Planning
As part of the Advanced Communication System, V T A is implementing Automated Passenger Counters (A P Cs) on its buses and light rail vehicles. A P Cs will count customer boardings and monitor on-time performance.  This information is used to determine bus and light rail ridership and to plan routes and modify schedules so they are realistic and reliable.  With the A P Cs, V T A will be able to check the service much more frequently than in the past. The net savings for six months in Fiscal Year 2003-04 is $238,000.

Protective Services
V T A's system-wide security is provided through a combination of County Sheriff's peace officers and Pinkerton Security (Pinkerton) unarmed and armed transit security officers.  The Fiscal Year 2003-04 budget proposes to eliminate some Deputies from our Sheriff's Transit Patrol and reduce Pinkerton services by approximately 19,000 hours. Despite the reduction, we believe that we can provide a reasonable level of law enforcement response.  The net savings in Fiscal Year 2003-04 is $1.5 million.

Caltrain 
We propose to cap our contribution to Caltrain at the Fiscal Year 2002-03 Adopted Budget level of $14.1 million for Fiscal Year 2003-04 and escalate the amount by 2 percent to $14.4 million for Fiscal Year 2004-05. 

Other Cost Reduction and Efficiency Measures 
Details regarding cost reductions will be provided at a later date.

OPERATIONS DIVISION - TRANSPORTATION

RESPONSIBILITIES
Transportation is responsible for the operation of V T A's 69 bus routes, the 18-mile Guadalupe light rail line, which runs from South San Jose to North San Jose terminating at the Baypointe Station on Tasman Drive, and the 11.5-mile Tasman light rail line, which runs from Mountain View to I-880 in Milpitas.  Over 1,000 operators provide more than 24,000,000 miles of bus and light rail service on an annual basis.  Three bus operating facilities, one light rail facility, the Operations Control Center and the field supervision unit support transit operations.  

MAJOR PROGRAMS
Transportation Administration provides management direction and oversight of Transportation Department policies, programs and projects by establishing goals, performance measures and standards.

Bus Transportation consists of Cerone Transportation, Chaboya Transportation, and North Transportation.  The section is responsible for the daily operations of V T A's 69 bus routes.

Rail Transportation consists of Guadalupe Transportation.  The section is responsible for the daily operations of the Guadalupe and Tasman light rail lines.   

Service Management consists of the Field Supervision, Operations Control Center, and Dispatch units.  The section is responsible for facilitating improved communication and efficiency among all units in the Operations Division.   

Rail Activation develops and implements programs and functions for all planned light rail and commuter rail lines operated by V T A.  Successful implementation of the rail projects requires that all tasks necessary for the initiation of revenue service be comprehensively identified and accomplished in a systematic, integrated and timely fashion.

Transportation Training is responsible for the initial and refresher training of Bus and Light Rail operators as well as the development of all rules and procedures governing bus and rail operations.  Training programs include Verification of Transit Training (V T T) safety and renewal classes, customer service training, D M V certification, post-accident retraining, contractor restricted access training and fire/life safety training for department personnel.

MAJOR ACTIVITIES 
The Bid, Dispatch and Timekeeping (B D T) System is an online real time software system, which enables efficient and accurate data entry and tracking of operating activities, operator utilization, bidding, daily dispatching, timekeeping and payroll processing.  

The Transportation Department is a major stakeholder in the design and implementation of TransLink, a universal fare card system using "smart card" technology.  Passengers will be able to pay fares on multiple Bay Area transit systems with a single TransLink card, about the size of a credit card.  

Transportation serves as V T A's representative and liaison with the California Public Utilities Commission on new General Orders, rules and procedures, attending hearings and authoring V T A position papers.     

The following is a description of the organizational chart for Operations Transportation Division: The Chief Operating Officer, Frank T. Martin, is supported by Deputy Director, Matthew O. Tucker.

Under Deputy Director, Matthew O. Tucker:
Operators on long-term leave.
Administration.
Chaboya Transportation, Curt Raitz, Superintendent.
North Transportation, Paul Googe, Superintendent.
Cerone Transportation ,Rich Golda, Superintendent.
Light Rail Transportation and Service Management, Austin Jenkins, General Superintendent.

Under Light Rail Transportation and Service Management, Austin Jenkins, General Superintendent.
Guadalupe Light Rail Transportation.
Transportation Training.
Field Supervision, Mark Bugna, Assistant Superintendent.
Operations Control Center, John Carlson, Assistant Superintendent
Rail Activation

Position number will be provided later.

OPERATIONS - TRANSPORTATION
(In thousands)
Wages & Salaries:  Fiscal Year 2001/02 Actual 60,296; Fiscal Year 2002/03 Adopted Budget 62,670; Fiscal Year 2002/03 Revised Estimate 59,176; Fiscal Year 2003/04 Proposed Budget 52,039; Fiscal Year 2004/05 Proposed Budget 50,270
Benefits:  Fiscal Year 2001/02 Actual 42,547; Fiscal Year 2002/03 Adopted Budget 41,581; Fiscal Year 2002/03 Revised Estimate 45,811; Fiscal Year 2003/04 Proposed Budget 41,285; Fiscal Year 2004/05 Proposed Budget 41,655
Materials & Supplies:  Fiscal Year 2001/02 Actual 87; Fiscal Year 2002/03 Adopted Budget 202; Fiscal Year 2002/03 Revised Estimate 202; Fiscal Year 2003/04 Proposed Budget 180; Fiscal Year 2004/05 Proposed Budget 181
Professional & Special Services:  Fiscal Year 2001/02 Actual 50; Fiscal Year 2002/03 Adopted Budget 206; Fiscal Year 2002/03 Revised Estimate 194; Fiscal Year 2003/04 Proposed Budget 170; Fiscal Year 2004/05 Proposed Budget 170
Other Services:  Fiscal Year 2001/02 Actual 13; Fiscal Year 2002/03 Adopted Budget 33; Fiscal Year 2002/03 Revised Estimate 54; Fiscal Year 2003/04 Proposed Budget 28; Fiscal Year 2004/05 Proposed Budget 28
Data Processing:  Fiscal Year 2001/02 Actual 31; Fiscal Year 2002/03 Adopted Budget 0; Fiscal Year 2002/03 Revised Estimate 0; Fiscal Year 2003/04 Proposed Budget 0; Fiscal Year 2004/05 Proposed Budget 0
Office Expense:  Fiscal Year 2001/02 Actual 162; Fiscal Year 2002/03 Adopted Budget 141; Fiscal Year 2002/03 Revised Estimate 136; Fiscal Year 2003/04 Proposed Budget 125; Fiscal Year 2004/05 Proposed Budget 130
Communications: Fiscal Year 2001/02 Actual 13; Fiscal Year 2002/03 Adopted Budget 0; Fiscal Year 2002/03 Revised Estimate 0; Fiscal Year 2003/04 Proposed Budget 0; Fiscal Year 2004/05 Proposed Budget 0
Employee Related Expense:  Fiscal Year 2001/02 Actual 127; Fiscal Year 2002/03 Adopted Budget 257; Fiscal Year 2002/03 Revised Estimate 214; Fiscal Year 2003/04 Proposed Budget 153; Fiscal Year 2004/05 Proposed Budget 158
Leases & Rents:  Fiscal Year 2001/02 Actual 84; Fiscal Year 2002/03 Adopted Budget 73; Fiscal Year 2002/03 Revised Estimate 24; Fiscal Year 2003/04 Proposed Budget 24; Fiscal Year 2004/05 Proposed Budget 24
Miscellaneous:  Fiscal Year 2001/02 Actual 7; Fiscal Year 2002/03 Adopted Budget 54; Fiscal Year 2002/03 Revised Estimate 53; Fiscal Year 2003/04 Proposed Budget 43; Fiscal Year 2004/05 Proposed Budget 43
Other Expense:  Fiscal Year 2001/02 Actual 1; Fiscal Year 2002/03 Adopted Budget 35; Fiscal Year 2002/03 Revised Estimate 32; Fiscal Year 2003/04 Proposed Budget 20; Fiscal Year 2004/05 Proposed Budget 20
Total Expense:  Fiscal Year 2001/02 Actual 103,418; Fiscal Year 2002/03 Adopted Budget 105,252; Fiscal Year 2002/03 Revised Estimate 105,896; Fiscal Year 2003/04 Proposed Budget 94,067; Fiscal Year 2004/05 Proposed Budget 92,679
Reimbursements:  Fiscal Year 2001/02 Actual 0; Fiscal Year 2002/03 Adopted Budget 0; Fiscal Year 2002/03 Revised Estimate 0; Fiscal Year 2003/04 Proposed Budget -887; Fiscal Year 2004/05 Proposed Budget 0
Net Total:  Fiscal Year 2001/02 Actual 103,418; Fiscal Year 2002/03 Adopted Budget 105,252; Fiscal Year 2002/03 Revised Estimate 105,896; Fiscal Year 2003/04 Proposed Budget 93,180; Fiscal Year 2004/05 Proposed Budget 92,679

MAJOR BUDGETARY CHANGES
Proposed October 2003 Service Reduction
V T A proposes to implement a 21 percent service reduction in October 2003. This service reduction will save approximately $15.5 million for eight and half months in Fiscal Year 2003-04.

Cost Reduction and Efficiency Measures 
The Transportation department has analyzed and modified programs and process to realize operational and fiscal efficiencies. In March 2003, Transportation eliminated two cost centers: Service Management and Transit Technical Training & Rail Activation Administration. As a result, effective July 1, 2003, nine positions will be eliminated. The annualized savings for the nine positions for Fiscal Year 2003-04 is approximately $869,000.

Fiscal Year 2004-05 Opening of the Tasman East and Capitol Light Rail Extensions
The Light Rail service to Capitol at Alum Rock Avenue in San Jose is scheduled to open in the summer of 2004. Ten new Light Rail Operator positions will be required for this service.  

OPERATIONS DIVISION - MAINTENANCE

RESPONSIBILITIES 
Maintenance is responsible for maintaining V T A's fleet of buses and light rail vehicles and the light rail system consisting of track, operating signals, power distribution system, and the adjoining rights-of-way.  It maintains all facilities, communications systems and most passenger facilities.  Additional responsibilities include materials management, management of all non-revenue vehicles (support vehicles) and maintenance information systems.  Maintenance also provides quality assurance and warranty services for all of V T A as well as maintenance related training and maintenance engineering. 

MAJOR PROGRAMS
Bus Maintenance consists of North Maintenance, Chaboya Maintenance, Cerone Maintenance and Overhaul and Repair.  The section is responsible for the timely and reliable maintenance, preventive maintenance, heavy repair, engine rebuilding, other maintenance services, inspections and servicing of V T A's active fleet of 431 buses which includes 40 60-foot New Flyer articulated buses.

Rail Maintenance consists of Light Rail Vehicle Maintenance and Way, Power and Signal Maintenance.  Under the direction of Maintenance Engineering, the Light Rail Vehicle Maintenance section is responsible for the continued delivery and acceptance testing of the new low floor Kinkisharyo light rail vehicles.  Light Rail Vehicle Maintenance is also responsible for the timely and reliable maintenance, preventive maintenance, inspections, repair and servicing of V T A's entire light rail fleet.  At this time, V T A has 43 Kinkisharyo low floor light rail vehicles and is in the process of decommissioning 39 UTDC light rail vehicles. Way, Power and Signal Maintenance is responsible for timely and reliable maintenance, preventive maintenance of right of way, rail system power, tracks, signals, Supervisory Control and Data Acquisition (S C A D A), wayside communications, station facilities and related equipment, park and ride lot maintenance, and evaluation of rail maintenance efficiency.

Facilities Maintenance consists of Facilities Maintenance and Passenger Facilities Maintenance.  In addition to maintaining V T A's Transit Centers and bus stops, this section is responsible for the planned and unscheduled (on-call) facility maintenance including preventive maintenance painting and roofing, inspections, repair of V T A's buildings, shelters, grounds (except right-of-way), related equipment, hazardous waste disposal and overall environmental regulatory record keeping and oversight.  The Facilities Maintenance Section evaluates the efficiency and safety of all facilities and related equipment.  This section also assists in the evaluation and planning of facility modifications, upgrades, expansions, and equipment replacements. 

Maintenance Support Services consists of Warranty and Quality Assurance, Non-revenue Vehicle Maintenance, Maintenance Training and Maintenance Information Systems.  The section is responsible for the management of warranty and quality assurance programs, administration and maintenance of the non-revenue vehicle fleet, management and administration of non-revenue vehicle procurement contracts, development and implementation of maintenance training programs, administration of maintenance information systems and the development, administration and distribution of maintenance standard operating procedures.

Materials Management consists of Bus Parts and Light Rail Parts.  The section is responsible for the timely ordering, replenishment, receipt, issue and management of bus and light rail parts inventory at all of V T A's facilities (Cerone, Chaboya, North and Guadalupe).  This section operates one main warehouse and three operating storerooms for bus parts and one main warehouse and one operating storeroom for rail parts.

Maintenance Engineering consists of Bus Engineering, Rail Engineering and Communications Systems Maintenance.  Bus and Rail Engineering units are responsible for the management and administration of all revenue vehicle procurement contracts as well as the technical specifications for the procurement of components and for the development of scheduled maintenance service inspection programs for revenue vehicles.  These units are also responsible for all engineering activities relating to the bus fleet and the light rail system.  The Communication Systems Maintenance unit is responsible for the maintenance of the voice telephone systems, all radio communication systems, closed circuit T V, card access systems and miscellaneous communication systems.


The following is a description of the organizational chart for Operations Maintenance: The Chief Operating Officer, Frank T. Martin, is supported by Deputy Director, George Barlow.

Under Deputy Director:
Long-term Absence positions.
Administration.
Bus Maintenance, Manuel Martinez, General Superintendent.
Rail Maintenance, Ray Borge, General Superintendent.
Facilities Maintenance Administration, Art Taylor, Manager.
Maintenance Support Services, Jerry Oxsen, Manager.
Maintenance Engineering, Chris Eichin, Manager.
Materials Management, Glen Bolon, Manager.

Under Bus Maintenance, Manuel Martinez, General Superintendent:
Cerone Maintenance, Mark Coffield, Superintendent.
Chaboya Maintenance, Jeffrey Flagg, Superintendent.
North Maintenance, Heidi Samuels, Superintendent.
Bus Overhaul and Repair, Ciro Aguirre, Superintendent.

Under Rail Maintenance, Ray Borge, General Superintendent:
Light Rail Vehicle Maintenance, Tom Kennedy, Superintendent.
Way, Power and Signal Maintenance, Curt Nicks, Superintendent.

Under Facilities Maintenance Administration, Art Taylor, Manager:
Facilities Maintenance. 
Passenger Facilities Maintenance, Tony Kelly, Supervisor.

Under Maintenance Support Services, Jerry Oxsen, Manager:
Warranty and Quality Assurance, Cris Crisologo, Manager.
N R V Maintenance, Carol Peterson, Coordinator.
Maintenance Training, Dwight Barnes, Supervisor.
Maintenance Information Systems, Sharon McElligott, Senior Management Analyst.

Under Maintenance Engineering, Chris Eichin, Manager:
Rail Maintenance Engineering, Hussein Fouad, Senior Systems Engineer.
Bus Maintenance Engineering, Art Douwes, Senior Mechanical Engineer.
Communications Maintenance, Bob Gave, Manager.

Under Materials Management, Glen Bolon, Manager:
Bus Parts.
Light Rail Parts.

Position number will be provided later.

OPERATIONS - MAINTENANCE
(In thousand dollars)
Wages & Salaries:  Fiscal Year 2001/02 Actual 38,856; Fiscal Year 2002/03 Adopted Budget 40,365; Fiscal Year 2002/03 Revised Budget 38,392; Fiscal Year 2003/04 Proposed Budget 34,098;  Fiscal Year 2004/05 Proposed Budget 32,247.
Benefits:  Fiscal Year 2001/02 Actual 23,619; Fiscal Year 2002/03 Adopted Budget 24,702; Fiscal Year 2002/03 Revised Budget 28,046; Fiscal Year 2003/04 Proposed Budget 25,772;  Fiscal Year 2004/05 Proposed Budget 25,655.
Materials & Supplies:  Fiscal Year 2001/02 Actual 14,174; Fiscal Year 2002/03 Adopted Budget 15,347; Fiscal Year 2002/03 Revised Budget 13,558; Fiscal Year 2003/04 Proposed Budget 12,741;  Fiscal Year 2004/05 Proposed Budget 12,923.
Professional & Special Services:  Fiscal Year 2001/02 Actual 103; Fiscal Year 2002/03 Adopted Budget 545; Fiscal Year 2002/03 Revised Budget 840; Fiscal Year 2003/04 Proposed Budget 387;  Fiscal Year 2004/05 Proposed Budget 739.
Other Services:  Fiscal Year 2001/02 Actual 4,547; Fiscal Year 2002/03 Adopted Budget 5,081; Fiscal Year 2002/03 Revised Budget 4,863; Fiscal Year 2003/04 Proposed Budget 4,515;  Fiscal Year 2004/05 Proposed Budget 4,718.
Fuel:  Fiscal Year 2001/02 Actual 4,809; Fiscal Year 2002/03 Adopted Budget 5,964; Fiscal Year 2002/03 Revised Budget 6,091; Fiscal Year 2003/04 Proposed Budget 6,161;  Fiscal Year 2004/05 Proposed Budget 5,143.
Traction Power:  Fiscal Year 2001/02 Actual 3,612; Fiscal Year 2002/03 Adopted Budget 4,000; Fiscal Year 2002/03 Revised Budget 3,589; Fiscal Year 2003/04 Proposed Budget 2,500;  Fiscal Year 2004/05 Proposed Budget 3,100.
Tires:  Fiscal Year 2001/02 Actual 1,026; Fiscal Year 2002/03 Adopted Budget 1,049; Fiscal Year 2002/03 Revised Budget 977; Fiscal Year 2003/04 Proposed Budget 916;  Fiscal Year 2004/05 Proposed Budget 938.
Utilities:  Fiscal Year 2001/02 Actual 2,103; Fiscal Year 2002/03 Adopted Budget 2,286; Fiscal Year 2002/03 Revised Budget 2,217; Fiscal Year 2003/04 Proposed Budget 2,408;  Fiscal Year 2004/05 Proposed Budget 2,456.
Data Processing:  Fiscal Year 2001/02 Actual 1; Fiscal Year 2002/03 Adopted Budget 0; Fiscal Year 2002/03 Revised Budget 0; Fiscal Year 2003/04 Proposed Budget 0;  Fiscal Year 2004/05 Proposed Budget 0.
Office Expense:  Fiscal Year 2001/02 Actual 107; Fiscal Year 2002/03 Adopted Budget 119; Fiscal Year 2002/03 Revised Budget 113; Fiscal Year 2003/04 Proposed Budget 106;  Fiscal Year 2004/05 Proposed Budget 108.
Communications:  Fiscal Year 2001/02 Actual 1,391; Fiscal Year 2002/03 Adopted Budget 1,746; Fiscal Year 2002/03 Revised Budget 1,640; Fiscal Year 2003/04 Proposed Budget 1,621;  Fiscal Year 2004/05 Proposed Budget 1,637.
Employee Related Expense:  Fiscal Year 2001/02 Actual 179; Fiscal Year 2002/03 Adopted Budget 308; Fiscal Year 2002/03 Revised Budget 281; Fiscal Year 2003/04 Proposed Budget 180;  Fiscal Year 2004/05 Proposed Budget 180.
Leases & Rents:  Fiscal Year 2001/02 Actual 117; Fiscal Year 2002/03 Adopted Budget 156; Fiscal Year 2002/03 Revised Budget 102; Fiscal Year 2003/04 Proposed Budget 82;  Fiscal Year 2004/05 Proposed Budget 85.
Miscellaneous:  Fiscal Year 2001/02 Actual 57; Fiscal Year 2002/03 Adopted Budget 57; Fiscal Year 2002/03 Revised Budget 57; Fiscal Year 2003/04 Proposed Budget 53;  Fiscal Year 2004/05 Proposed Budget 54.
Other Expense:  Fiscal Year 2001/02 Actual 749; Fiscal Year 2002/03 Adopted Budget 0; Fiscal Year 2002/03 Revised Budget 0; Fiscal Year 2003/04 Proposed Budget 0;  Fiscal Year 2004/05 Proposed Budget 0.
Total Expense:  Fiscal Year 2001/02 Actual 95,450; Fiscal Year 2002/03 Adopted Budget 101,725; Fiscal Year 2002/03 Revised Budget 100,766; Fiscal Year 2003/04 Proposed Budget 91,540;  Fiscal Year 2004/05 Proposed Budget 89,983.
Reimbursements:  Fiscal Year 2001/02 Actual -4,124; Fiscal Year 2002/03 Adopted Budget -4,012; Fiscal Year 2002/03 Revised Budget -4,012; Fiscal Year 2003/04 Proposed Budget -4,012;  Fiscal Year 2004/05 Proposed Budget -4,192.
Net Total:  Fiscal Year 2001/02 Actual 91,326; Fiscal Year 2002/03 Adopted Budget 97,713; Fiscal Year 2002/03 Revised Budget 96,754; Fiscal Year 2003/04 Proposed Budget 87,528;  Fiscal Year 2004/05 Proposed Budget 85,791.

MAJOR BUDGETARY CHANGES
Proposed October 2003 Service Reduction
Details regarding cost reductions will be provided at a later date.

Advanced Communication Systems (A C S) Support
One Communications Systems Analyst position was added to support the overall system management and maintenance of the A C S equipment.  The A C S includes a new simulcast radio communication system, Computer Aided Dispatch and Automatic Vehicle Location software, automated next-stop announcements on buses, driver security features, and automatic passenger counting equipment.

The annual cost of the position is estimated at approximately $133,000 for Fiscal Year 2003-04 and $138,000 for Fiscal Year 2004-05.   

Tasman East and Capitol Light Rail Extensions
Tasman East and Capitol Light Rail Extensions consist of 6.3 additional right of way miles (12 double track miles and overhead wiring). The extensions are scheduled to open in Summer 2004. Maintenance staff needs to be hired at the start of the second quarter of                 Fiscal Year 2003-04, prior to the opening of the light rail extension, for system training. 

Nine additional positions (three Signal Maintainers in the Light Rail Signal Maintenance Unit, one Overhead Line Worker and one Substation Maintainer in the Light Rail Power System Maintenance Unit, one Track Worker in the Light Rail Track Maintenance Unit, and three Maintenance Workers in the Light Rail Station Maintenance Unit) are required to support the extension. The approximate cost of the nine positions for nine months is $594,000 for Fiscal Year 2003-04 and the annual cost for Fiscal Year 2004-05 is $845,000. 

Fuel
The FISCAL YEAR 2002-03 budget assumption for low sulfur diesel fuel was $1.00 per gallon.  In the third quarter of Fiscal Year 2002-03, the price of low sulfur diesel fuel increased to $1.26 per gallon. The proposed budget assumption for the reminder of Fiscal Year 2002-03 is $1.20 per gallon and for Fiscal Year 2003-04 is $1.40 per gallon due to the current volatility of diesel fuel prices and the current situation in the Middle East. The total fuel budget for Fiscal Year 2003-04 is $6.2 million based on 15.7 million bus service miles. 

The low sulfur diesel fuel budget assumption for Fiscal Year 2004-05 is projected to be $1.25 per gallon. Based on the projected 14.6 million bus service miles, the estimated fuel cost for bus service will be approximately $5.1 million, a decrease of $1.1 million from the  Fiscal Year 2003-04 fuel budget.   

ADMINISTRATIVE SERVICES DIVISION

RESPONSIBILITIES
The Administrative Services Division includes Information Technology, Employee Relations, Employee Services, and Risk Management.  The Division is responsible for the business and employee support functions, including information technology, employee/labor relations, organization development and training, personnel selection, employee compensation, employee benefits, employee wellness, substance abuse testing, equal employee opportunity, workers' compensation, claims management and safety, and risk management.

MAJOR PROGRAMS
Information Technology Department: The Information Technology Department manages centralized data processing and maintains V T A's information systems.  This includes both application development and support and infrastructure management. 

Employee Relations Department: There are three major sections of responsibility in the Employee Relations Department, Equal Opportunity , Labor Relations, and Employee Development.  The Equal Opportunity Section is responsible for preparing and administering V T A's Equal Employment Opportunity/Affirmative Action Program; ensuring compliance with state and federal non-discrimination laws and regulations; and conducting discrimination complaint investigations. 

The Employee Relations Section activities are focused on conflict resolution and include negotiating and administering collective bargaining agreements for the four bargaining units (A T U, Local 265; S E I U, Local 715; C E M A; and Engineers and Architects); representing V T A management in arbitrations; providing training and consultation on employee relations issues, including grievance handling and discipline actions; and researching labor trends and issues.

The Employee Development Section is responsible for V T A-wide development and coordination of training.  Programs include customer service, computer skills, tuition assistance, and new employee orientation. The Section also focuses on working with managers and employees to increase employee participation in achieving V T A goals and objectives.  

Employee Services Department: This department is composed of Personnel Services, Recruitment and Selection, Compensation and Classification, Health and Welfare, and Retirement Services.  

The Personnel Services Section's activities include position control and records, reviewing and processing all personnel transactions, maintaining official personnel files, and processing employment verification for employees.

The Recruitment Section's activities include targeted outreach and examination of candidates to fill vacancies throughout V T A with qualified employees; it's also responsible for the development of Personnel Policies and Procedures to promote sound personnel practices.  The integral part of effective recruitment is that V T A's compensation is competitive.  This is the responsibility of the Classification and Compensation Section.  This Section conducts studies to appropriately define the work for classes within V T A and to ensure that compensation is competitive.

The Health and Welfare Section is responsible for administering employee benefits programs, including medical, dental, vision, employee assistance, dependent care, life insurance, A D & D, disability insurance and COBRA. The Retirement Services section is responsible for administering Pension and Deferred Compensation, A T U, and PERS retirement programs; and serving as staff to the A T U Pension Board and the V T A Deferred Compensation Committee.

Risk Management Department: The Risk Management Department is responsible for identifying, assessing, preventing, controlling and financing accidental losses that result from operations, and rail, facilities, and highway construction activities.  Specific functions include fund management of retained losses, management of claims administration programs for both Workers' Compensation and Liability losses, including transit liability, construction liability, first party damage, property and employee property losses.  The Department manages risk transfer through the purchase of insurance and establishment of insurance standards for contract transactions.  

The Department is responsible for V T A's Environmental Health and Safety Programs, which include employee safety, and health, safety awards programs, environmental compliance and the Emergency Response Plan.  Risk Management also administers the employee A D A, F M L A, return to work/modified work and earned benefit payroll integration programs.

The Substance Abuse Control Program is responsible for administering the Drug-Free Workplace Act and the F T A required substance abuse testing program for safety-sensitive employees, including detection, case management, and employee training.

The following is a description of the organizational chart for the Administrative Services Division: The Chief Administrative Officer, Kaye L. Evleth, is supported by:
Administration.
Information Technology Department, Richard Kurk, Chief Information Officer.
Employee Relations, Robert Escobar, Manager.
Employee Services, Shellie Albright, Manager.
Risk Management, Nanci Eksterowicz, Manager.

Position number will be provided later.

ADMINISTRATIVE SERVICES DIVISION 
(In thousand dollars)
Wages & Salaries:  Fiscal Year 2001/02 Actual 9,040; Fiscal Year 2002/03 Adopted Budget 9,743; Fiscal Year 2002/03 Revised Budget 9,186; Fiscal Year 2003/04 Proposed Budget 9,037;  Fiscal Year 2004/05 Proposed Budget 9,185.
Benefits:  Fiscal Year 2001/02 Actual 3,613; Fiscal Year 2002/03 Adopted Budget 3,780; Fiscal Year 2002/03 Revised Budget 4,396; Fiscal Year 2003/04 Proposed Budget 4,835;  Fiscal Year 2004/05 Proposed Budget 5,456.
Materials & Supplies:  Fiscal Year 2001/02 Actual 107; Fiscal Year 2002/03 Adopted Budget 105; Fiscal Year 2002/03 Revised Budget 105; Fiscal Year 2003/04 Proposed Budget 25;  Fiscal Year 2004/05 Proposed Budget 26.
Professional & Special Services:  Fiscal Year 2001/02 Actual 5,719; Fiscal Year 2002/03 Adopted Budget 3,831; Fiscal Year 2002/03 Revised Budget 3,550; Fiscal Year 2003/04 Proposed Budget 974;  Fiscal Year 2004/05 Proposed Budget 993.
Other Services:  Fiscal Year 2001/02 Actual 972; Fiscal Year 2002/03 Adopted Budget 309; Fiscal Year 2002/03 Revised Budget 232; Fiscal Year 2003/04 Proposed Budget 74;  Fiscal Year 2004/05 Proposed Budget 75.
Insurance:  Fiscal Year 2001/02 Actual 5,199; Fiscal Year 2002/03 Adopted Budget 5,262; Fiscal Year 2002/03 Revised Budget 5,111; Fiscal Year 2003/04 Proposed Budget 4,461;  Fiscal Year 2004/05 Proposed Budget 4,438.
Data Processing:  Fiscal Year 2001/02 Actual 3,585; Fiscal Year 2002/03 Adopted Budget 2,965; Fiscal Year 2002/03 Revised Budget 2,965; Fiscal Year 2003/04 Proposed Budget 2,524;  Fiscal Year 2004/05 Proposed Budget 2,575
Office Expense:  Fiscal Year 2001/02 Actual 116; Fiscal Year 2002/03 Adopted Budget 123; Fiscal Year 2002/03 Revised Budget 94; Fiscal Year 2003/04 Proposed Budget 138;  Fiscal Year 2004/05 Proposed Budget 140.
Communications:  Fiscal Year 2001/02 Actual 30; Fiscal Year 2002/03 Adopted Budget 0; Fiscal Year 2002/03 Revised Budget 0; Fiscal Year 2003/04 Proposed Budget 0;  Fiscal Year 2004/05 Proposed Budget 0.
Employee Related Expense:  Fiscal Year 2001/02 Actual 735; Fiscal Year 2002/03 Adopted Budget 497; Fiscal Year 2002/03 Revised Budget 510; Fiscal Year 2003/04 Proposed Budget 446;  Fiscal Year 2004/05 Proposed Budget 454.
Leases & Rents:  Fiscal Year 2001/02 Actual 51; Fiscal Year 2002/03 Adopted Budget 36; Fiscal Year 2002/03 Revised Budget 0; Fiscal Year 2003/04 Proposed Budget 0;  Fiscal Year 2004/05 Proposed Budget 0.
Miscellaneous:  Fiscal Year 2001/02 Actual 111; Fiscal Year 2002/03 Adopted Budget 91; Fiscal Year 2002/03 Revised Budget 82; Fiscal Year 2003/04 Proposed Budget 53;  Fiscal Year 2004/05 Proposed Budget 54.
Other Expense:  Fiscal Year 2001/02 Actual 216; Fiscal Year 2002/03 Adopted Budget 0; Fiscal Year 2002/03 Revised Budget 0; Fiscal Year 2003/04 Proposed Budget 0;  Fiscal Year 2004/05 Proposed Budget 0.
Total Expense:  Fiscal Year 2001/02 Actual 29,494; Fiscal Year 2002/03 Adopted Budget 26,742; Fiscal Year 2002/03 Revised Budget 26,231; Fiscal Year 2003/04 Proposed Budget 22,567;  Fiscal Year 2004/05 Proposed Budget 23,396.
Reimbursements:  Fiscal Year 2001/02 Actual -263; Fiscal Year 2002/03 Adopted Budget -61; Fiscal Year 2002/03 Revised Budget -474; Fiscal Year 2003/04 Proposed Budget -607;  Fiscal Year 2004/05 Proposed Budget -607.
Net Total:  Fiscal Year 2001/02 Actual 29,231; Fiscal Year 2002/03 Adopted Budget 26,681; Fiscal Year 2002/03 Revised Budget 25,757; Fiscal Year 2003/04 Proposed Budget 21,960;  Fiscal Year 2004/05 Proposed Budget 22,789.

MAJOR BUDGETARY CHANGES 
Cost Reduction and Efficiency Measures 
In Fiscal Year 2002-03, as an effort to reduce costs and improve efficiency, the Administrative Services Division has undergone a reorganization to streamline its support functions.  This reorganization included combining the Personnel and Benefits Departments to create the new Employee Services Department; streamlining the Civil Rights, Employee Relations, and Organizational Development and Training departments to form the new Employee Relations Department; moving the Substance Abuse Control Program to Risk Management; and continuing realization of savings from ongoing consolidation in the IT cost center. 

Details regarding cost reductions will be provided at a later date.


CONSTRUCTION DIVISON

RESPONSIBILITIES
The Construction Division completes engineering designs and implements construction projects that are part of V T A's' rail, facilities, and highway transportation improvement program.  The division accomplishes this task by managing the preparation of construction plans and specifications, administration of construction contracts and coordination of project hand-over and acceptance with V T A Operations or city and state agencies.  Additionally, the division has ongoing responsibilities in project utility coordination, field-surveying activities including "as-built" drawings, and capital projects management support for other V T A divisions.

MAJOR PROGRAMS
The construction division is currently organized into three project delivery groups: Rail and Facilities, Highways and the Capital Projects group. The Rail and Facilities group manages the implementation of a $1.25 billion rail expansion program with $1 billion funded as part of the 1996 Measure B Transportation Improvement Program. This group is beginning to transition into preliminary engineering (subject to State Funding) for the $3.7 billion BART extension to Silicon Valley. The group also designs and constructs V T A facility modification and expansion projects, including transit centers, Caltrain stations, bus stops, and operating, maintenance and administrative facilities. 

The Highway group is responsible for managing project delivery of $600 million in highway improvement projects funded as part of the 1996 Measure B Transportation Improvement Program.  The Highway group is also taking on additional project and construction management of local highway projects being requested by the City of San Jose. These projects include the I-880/Coleman Interchange and Route 101/Bailey Interchange. Funding for these projects is from other local and state agencies and V T A costs are fully reimbursed. The Highway group is also responsible for all V T A Survey and Hazardous Material Remediation for rail, facilities and highway projects.

The Capital Projects Group is responsible for managing cost and schedule reporting on V T A's major Capital projects. The group is instrumental in tracking capital expenditures and forecasting costs to complete and works closely with V T A's Fiscal Resources Division in transferring capital assets once projects are completed. The group also maintains state of the art project controls software tools for reporting costs and tracking changes that are integrated into V T A's SAP enterprise software. 

Major projects underway by V T A's Construction Division next two Fiscal Years that were used as a basis for determining staffing levels are as follow.

1996 Measure B Rail Projects:
The Tasman East Light Rail Project consists of a five-mile extension of V T A's existing light rail system from North First Street in the city of San Jose, through the city of Milpitas, to Hostetter Avenue in northeast San Jose. The entire project to Hostetter will be completed by July 2004.

The Capitol Light Rail Project consists of 3.3-mile extension from Hostetter Avenue in San Jose, along Capitol Avenue, to just east of Alum Rock Avenue.  Current plans are to open Capitol and Tasman East at the same time in July 2004.

The Vasona Light Rail Project consists of building a 5.2 mile Vasona Light Rail Line from downtown San Jose to the San Jose Arena/Caltrain Station and on to Winchester Blvd. in Campbell. Current plans are to open the Vasona Project in January 2006.

The Caltrain Service Improvement Program involves a number of service improvements for Caltrain in Santa Clara County.  A program of projects is funded by 1996 Measure B Transportation Improvement Program and TCRP grants. Construction of a $22 million TCRP funded Tamien to Lick double tracking project began in late 2002 and is scheduled for completion in late 2003. Other projects include the improvement to Caltrain Stations and Park and Ride lots.

1996 Measure B Highway Projects: 
Most of these highway projects are under construction and will open from late 2003 through 2005.
- Route I-880 - Widening from 4 to 6 lanes in San Jose
- Route 85/87 - Interchange Completion in south San Jose 
- Route 101 - Widening from 4 to 6 lanes plus 2 HOV lanes -Morgan Hill/south San Jose
- Route 85/101 (S) Interchange in south San Jose
- Routes 237/880 Interchange Completion-Stage 'C' in Milpitas
- Routes 85/101 (N) Interchange and HOV Direct Connector in Mountain View
- Route 17 improvements
- Route 152 safety projects

2000 Measure A Transit Improvement Projects:
The Silicon Valley Rapid Transit Project is a 10 to 12 year design and construction effort estimated at $3.7 billion in 2001 dollars. The project is currently in the conceptual engineering, F E I S/F E I R phase. The Construction Division is assisting the Development and Congestion Management Division in reviewing design alternatives, project schedules, and cash flows. Also, the division will develop consultant requests for proposals and a project implementation plan to allow for a seamless transition to final design and construction in mid to late 2003 subject to TCRP funding availability.

Other Rail and Facilities Projects:
- Retrofit project to raise the existing north Guadalupe Corridor Light Rail station platforms.
- Reconstruction of North Operating Division.
- Reconstruction and expansion of Cerone Operating Division, Overhaul and Repair Facility and Distribution Center.
- Master Plan Study for Chaboya Operating Division, Palo Alto, Gilroy and West Valley College Transit Centers.
- Bus Stop Improvement Program.
- V T A Signage Improvement Program.
- Hazardous Materials Remediation and Monitoring.
- Various Bus Operation and Maintenance Facility Modification Projects.
- LRT Bridge Seismic Retrofit Projects.

Other Highway Projects:
- I-880 Coleman Interchange for City of San Jose.
- Route 101/Bailey Interchange for City of San Jose.
- 87 (S) HOV Lanes.
- 87 (N) HOV Lanes.

The following is a description of the organizational chart for the Construction Divison: The Chief Construction Officer, Jack Collins, is supported by:
Administration.
Rail and Facilities Design and Construction, Les Miller, Deputy Director.
Capital Projects Group Manager, Derek Carrier.
Highway Construction, Jeff Funk, Deputy Director.

Under Rail and Facilities Design and Construction, Les Miller, Deputy Director :
Systems Manager, Ramesh Dhingra.
Vasona Project Design and Construction Manager, Mark Robinson.
Facilities Design and Construction Manager, Ken Brencic.
BART Group Manager, John Donahue.
Permits, USA Locating Business Relations Manager, Bill Kindricks, Utilities Coordination Manager, John Beebe.
Tasman East/Capital Project Design and Construction Manager, Arch Walters.
Platform Modifications.

Under Highway Construction, Jeff Funk, Deputy Director:
Survey Manager, Stan Heffner.
Hazardous Material Environmental Engineer, Wes Toy.

Position number will be provided later.

CONSTRUCTION DIVISION 
(In thousands)
Wages & Salaries:  Fiscal Year 2001/02 Actual 8,107; Fiscal Year 2002/03 Adopted Budget 9,967; Fiscal Year 2002/03 Revised Budget 8,825; Fiscal Year 2003/04 Proposed Budget 9,382;  Fiscal Year 2004/05 Proposed Budget 5,294.

Benefits:  Fiscal Year 2001/02 Actual 2,881; Fiscal Year 2002/03 Adopted Budget 3,837; Fiscal Year 2002/03 Revised Budget 4,025; Fiscal Year 2003/04 Proposed Budget 4,957;  Fiscal Year 2004/05 Proposed Budget 3,113.
Materials & Supplies:  Fiscal Year 2001/02 Actual 72; Fiscal Year 2002/03 Adopted Budget 98; Fiscal Year 2002/03 Revised Budget 98; Fiscal Year 2003/04 Proposed Budget 41;  Fiscal Year 2004/05 Proposed Budget 41.
Professional & Special Services:  Fiscal Year 2001/02 Actual 1; Fiscal Year 2002/03 Adopted Budget 240; Fiscal Year 2002/03 Revised Budget 240; Fiscal Year 2003/04 Proposed Budget 200;  Fiscal Year 2004/05 Proposed Budget 200.
Other Services:  Fiscal Year 2001/02 Actual 1; Fiscal Year 2002/03 Adopted Budget 6; Fiscal Year 2002/03 Revised Budget 6; Fiscal Year 2003/04 Proposed Budget 0;  Fiscal Year 2004/05 Proposed Budget 0.
Data Processing:  Fiscal Year 2001/02 Actual 7; Fiscal Year 2002/03 Adopted Budget 0; Fiscal Year 2002/03 Revised Budget 0; Fiscal Year 2003/04 Proposed Budget 0;  Fiscal Year 2004/05 Proposed Budget 0.
Office Expense:  Fiscal Year 2001/02 Actual 50; Fiscal Year 2002/03 Adopted Budget 59; Fiscal Year 2002/03 Revised Budget 49; Fiscal Year 2003/04 Proposed Budget 37;  Fiscal Year 2004/05 Proposed Budget 37.
Employee Related Expense:  Fiscal Year 2001/02 Actual 42; Fiscal Year 2002/03 Adopted Budget 82; Fiscal Year 2002/03 Revised Budget 77; Fiscal Year 2003/04 Proposed Budget 46;  Fiscal Year 2004/05 Proposed Budget 46.
Leases & Rents:  Fiscal Year 2001/02 Actual 21; Fiscal Year 2002/03 Adopted Budget 33; Fiscal Year 2002/03 Revised Budget 20; Fiscal Year 2003/04 Proposed Budget 2;  Fiscal Year 2004/05 Proposed Budget 2.
Miscellaneous:  Fiscal Year 2001/02 Actual 7; Fiscal Year 2002/03 Adopted Budget 8; Fiscal Year 2002/03 Revised Budget 8; Fiscal Year 2003/04 Proposed Budget 10;  Fiscal Year 2004/05 Proposed Budget 10.
Total Expense:  Fiscal Year 2001/02 Actual 11,189; Fiscal Year 2002/03 Adopted Budget 14,330; Fiscal Year 2002/03 Revised Budget 13,348; Fiscal Year 2003/04 Proposed Budget 14,675;  Fiscal Year 2004/05 Proposed Budget 8,743.
Reimbursements:  Fiscal Year 2001/02 Actual -12,341; Fiscal Year 2002/03 Adopted Budget -11,898; Fiscal Year 2002/03 Revised Budget -11,926; Fiscal Year 2003/04 Proposed Budget -12,675;  Fiscal Year 2004/05 Proposed Budget -7,365.
Net Total:  Fiscal Year 2001/02 Actual -1,152; Fiscal Year 2002/03 Adopted Budget 2,432; Fiscal Year 2002/03 Revised Budget 1,422; Fiscal Year 2003/04 Proposed Budget 2,000;  Fiscal Year 2004/05 Proposed Budget 1,378

MAJOR BUDGETARY CHANGES 
Cost Reduction and Efficiency Measures 
During Fiscal Year 2002-03, the Construction Division revised its staffing to reflect the reductions made to V T A's Capital Program. These revisions resulted in the elimination of 12 positions. These reductions, along with reductions to overtime and savings realized from vacancies and six positions being converted from consultants to V T A positions, result in salary cost savings of approximately $1.1 million. As a result of the significant increase in benefits, benefits actually increase to $188,000 despite fewer positions.

The full year impact of the added positions is partially reflected in an increase of $1.4 million of salaries and benefits in FISCAL YEAR 2003-04. Since these positions are mostly project reimbursable, we also increase estimated reimbursements by $0.7 million. 

The Fiscal Year 2004-05 Recommended Budget represents the winding down and completion of much of the M B T I P and V T A Capital Programs, and is reflected in dramatic reductions in both the division's labor expenditure and reimbursement budgets. 

CONSTRUCTION DIVISION - HIGHWAY CONSTRUCTION
(In thousands)
Wages & Salaries:  Fiscal Year 2001/02 Actual 247; Fiscal Year 2002/03 Adopted Budget 280; Fiscal Year 2002/03 Revised Budget 280; Fiscal Year 2003/04 Proposed Budget 284;  Fiscal Year 2004/05 Proposed Budget 284.
Benefits:  Fiscal Year 2001/02 Actual 97; Fiscal Year 2002/03 Adopted Budget 109; Fiscal Year 2002/03 Revised Budget 109; Fiscal Year 2003/04 Proposed Budget 152;  Fiscal Year 2004/05 Proposed Budget 169.
Total Expense:  Fiscal Year 2001/02 Actual 344; Fiscal Year 2002/03 Adopted Budget 389; Fiscal Year 2002/03 Revised Budget 389; Fiscal Year 2003/04 Proposed Budget 436;  Fiscal Year 2004/05 Proposed Budget 453.
Reimbursements:  Fiscal Year 2001/02 Actual -428; Fiscal Year 2002/03 Adopted Budget -389; Fiscal Year 2002/03 Revised Budget -389; Fiscal Year 2003/04 Proposed Budget -436;  Fiscal Year 2004/05 Proposed Budget -453.
Net Total:  Fiscal Year 2001/02 Actual -84; Fiscal Year 2002/03 Adopted Budget 0; Fiscal Year 2002/03 Revised Budget 0; Fiscal Year 2003/04 Proposed Budget 0;  Fiscal Year 2004/05 Proposed Budget 0.

For accounting purposes, three positions in the Highway Construction cost center are budgeted and accounted for under the Congestion Management Program Fund, not V T A Transit Enterprise Fund.  Their costs are fully project reimbursable. 

DEVELOPMENT & CONGESTION MANAGEMENT DIVISION

RESPONSIBILITIES
The Development & Congestion Management Division (D & C M) is responsible for the planning, marketing, development, programming and congestion management functions for V T A. This division consists of four major functional units: Congestion Management Program (C M P); Transit Planning & Development; Marketing & Customer Service; and Highway Project Development & Administration.

The CMP, which is fiscally separate from V T A Transit, is funded through assessments to local jurisdictions (Member Agencies), federal and state planning grants, grant program manager administration fees, S B 45 Monitoring Funds, and reimbursements for services provided.  In addition, Highway Project Development & Administration and Transit Planning & Development are funded from the budget of each specific capital project.

MAJOR PROGRAMS

1.  CONGESTION MANAGEMENT PROGRAM:
Congestion Management Program (C M P) and Capital Improvement Program (C I P): The Congestion Management Program is responsible for preparing and implementing the county's statutorily mandated Congestion Management Program.  Adoption of a C M P is necessary to qualify for certain transportation funds made available through the state gas tax increase authorized in 1990.  The C M P sets performance standards for roadways, public transit, and other modes of transportation, and shows how local jurisdictions will meet those standards through a ten-year Capital Improvement Program, land use strategies and other actions designed to reduce congestion and improve air quality.  Under development is a policy to link local land use decision-making to transportation funding through the C M P Capital Improvement Program.  The C M P is updated every two years and previously, on an annual basis the elements of the C M P were monitored and C M P staff prepared a monitoring and conformance report.  However, for Fiscal Year 2003-04 the annual traffic monitoring and preparation of the monitoring and conformance report will not occur due to financial constraints.  Traffic monitoring will resume in Fall 2004.

Valley Transportation Plan 2020 (V T P 2020): This is the long-range transportation plan for the county, which drives overall planning and programming efforts of the Valley Transportation Authority.  The policies and procedures for the various programs are now under development as part of the V T P 2020 Implementation Plan and will, when adopted, be incorporated into the 2003 update of V T P 2020.

Grant Programming: The Congestion Management Program is responsible for fund programming and/or oversight of the following Federal, State, regional and local grant programs:

Federal
- Federal Surface Transportation Program/Congestion Mitigation - Air Quality Improvement Program (S T P/C M A Q): S T P funds are used to address problems caused by urban and suburban congestion by funding improvement projects across all transportation modes.  C M A Q funds are to be used to implement the transportation provisions of the 1990 Federal Clean Air Act.  The S T P and C M A Q funding programs were wrapped into the Federal Intermodal Surface Transportation Efficiency Act of 1991 (I S T E A) and continued when Congress enacted the Transportation Equity Act for the 21st Century (T E A-21) in mid-1997.  Under both ISTEA and the current T E A-21 legislation, V T A determines the countywide priorities for these funds, subject to final approval of the Metropolitan Transportation Commission (M T C).

- Transportation Enhancement (T E): T E A-21 provides for a 10percent set-aside of each state's S T P allocation to be used for "Transportation Enhancement" (T E) above and beyond normal capital improvements that fit within the 12 categories described in the T E A-21 legislation.  Within the M T C region, the responsibility for T E program development has been divided between M T C and the congestion management agencies (C M A's).  M T C programs 50percent of the available T E funding and the C M A's develop programs for the remaining 50percent subject to M T C approval.  V T A, acting in its capacity as the C M A for Santa Clara County, programs the local share.

State
- Regional Improvement Program (R I P): Senate Bill 45 (S B-45), which was signed into law at the end of the 1997 legislative session, consolidated several state transportation funding programs and directed 75 percent of the funds from the State Highway Account (S H A) into the Regional Improvement Program (R I P).  Each county receives a "County Share".  V T A determines the countywide priorities for these funds subject to final approval by M T C and the California Transportation Commission (C T C) via the State Transportation Improvement Program (S T I P) process.

Local
- Transportation Fund for Clean Air Program Manager Fund (T F C A 40 percent): In 1991, state statute authorized the Bay Area Air Quality Management District (B A A Q M D) to increase vehicle registration fees by up to $4.00 per vehicle to implement certain transportation control measures contained in the District's adopted Clean Air Plan.  Forty percent (40 percent) of these funds are distributed to each county based on a proportional share of paid vehicle registrations.  These funds are allocated and administered by a program manager selected within each county.  V T A's Congestion Management Program is the program manager for the T F C A 40 percent Funds for Santa Clara County.

- Transportation Development Act Article 3: The California State Legislature enacted the Transportation Development Act (T D A) in 1972.  Article 3 of this act provides for the return of a portion of the sales tax receipts in each county to fund bicycle and pedestrian improvements.  M T C administers the program Bay Area-wide, while V T A develops annual countywide program priorities.

Programmed Project Monitoring and Assistance: The State Transportation Improvement Program (S T I P) contains a timely use of funds provision that requires project sponsors to deliver the project on time or risk loss of the grant funding.  This legislation also increased the responsibility of local agencies, such as V T A, to not only program transportation funds but to also monitor project progress and potentially provide assistance to ensure timely completion.  Because of the substantial fiscal impact on the countywide Capital Improvement Program due to delayed project construction, C M P staff is providing active oversight of the delivery of C I P projects.  This oversight includes a significant level of direct involvement by division staff, utilizing consultant engineering assistance, in several large, high profile state highway projects managed by Caltrans, including the Route 880/Dixon Landing Road interchange, the Route 101 Auxiliary Lanes from the Route 87/101 interchange to Trimble Road, and Route 87 near Mineta San Jose International Airport.  CMP staff also provides to the Board of Directors and Advisory Committees the Programmed Projects Quarterly Monitoring Report, which tracks the progress of projects funded through programming actions of the V T A Board of Directors.

Bicycle and Pedestrian Planning Program: The 20-year Countywide Bicycle Plan was adopted by the Board of Directors in October 2000.  It includes three prioritized tiers of capital bicycle projects.  The ten-year Bicycle Expenditure Program, which is included in the Countywide Bicycle Plan, is the funding mechanism for the Tier 1 projects.  Over $31 million has been approved for the Bicycle Expenditure Program.  The Bicycle Planning Program administers and distributes funds to Member Agencies to implement and construct the projects.

In 2001, the V T A Board of Directors requested that the V T A Advisory Committee structure be modified to focus more directly on pedestrian issues.  In response, staff suggested that the existing Bicycle Advisory Committee be re-established as the Bicycle and Pedestrian Advisory Committee (B P A C), and that its duties be augmented to include attention to pedestrian-related issues.  The Board also requested that staff develop a V T A Pedestrian Program that delineates the agency's pedestrian-related activities.  Board adoption of the Pedestrian Technical Guidelines is anticipated for Summer 2003.

Pavement Management Program: The 1996 Measure B Transportation Improvement Program and other sources provide funds to local jurisdictions for street repair and other transportation projects.  Administration and distribution of these funds is managed by the Pavement Management Program and is primarily based on a formula derived from the 1990 Proposition 111, which increased the tax on gasoline and subvened the receipts to local jurisdictions.  Over the life of the 1996 Measure B, local jurisdictions will receive a combined total of approximately $90 million countywide.  Additionally, $37 million in Federal funds previously secured for similar functions will also be administered and distributed through the Pavement Management Program.

2. TRANSIT PLANNING & DEVELOPMENT:
Transit Planning & Programming is responsible for the planning and conceptual design of all major transit projects including new rapid transit corridors, for the administration of federal, state and regional transit grants, and for V T A's transit oriented development program.  Objectives include:  Conducting system and corridor planning, supporting environmental clearance, completing Conceptual Engineering and supporting Preliminary Engineering for programmed 2000 Measure A projects;  Completing transit planning projects including Short Range Transit Plan (S R T P);  Coordinating V T A planning with external agencies;  Supporting planning activities for Caltrain, A C E and Bus Rapid Transit (B R T) projects;  Conducting planning, research, advocacy and development review activities in support of  Transit-Oriented Development, with particular emphasis on T O D projects on V T A property;  Ensuring required compliance activities for Transportation for Livable Communities (T L C) projects;  Aggressively advocating for, and successfully programming, securing and managing Federal, State and Regional transit grant revenues to support V T A's on-going capital and operations programs;  Providing funding, budgetary and regulatory support to V T A project  managers and management to maximize the use of external revenues on capital projects and preventative maintenance;  Ensuring agency compliance with current Federal and State grant management rules and audit requirements to maintain V T A's grant eligibility status.  Current tasks include:

- Conceptual Design for Silicon Valley Rapid Transit Corridor (BART)
- Downtown East Valley LRT Conceptual Design
- Caltrain and Altamont Commuter Express Capital Improvement Planning
- Line 22 Bus Rapid Transit Project
- TOD Planning for Development of V T A Property
- Federal and State Grant Funding for the BART Project
- Other Grants Supporting V T A Operations and Capital Projects

Environmental Analysis prepares all of V T A's environmental documents including those required for the 1996 Measure B Transportation Improvement Program transit and highway projects and ensures that V T A implements the required mitigation measures/conditions during construction activities for 2000 Measure A funded projects as well as other projects.  It effectively integrates land use and transportation through coordinated V T A review of City and County development projects and plans.  Current tasks include:

- E I S/E I R for Silicon Valley Rapid Transit Corridor (BART) and Downtown East Valley LRT projects
- 1996 Measure B Transit Project Environmental Documents
- Measure B and other Highway Project Environmental Documents
Real Estate appraises and acquires property for all V T A capital projects and manages V T A's existing real estate assets.  Objectives include:  Management, administration and coordination of the Real Estate process to insure the purchase of various property rights necessary for the 1996 Measure B and 2000 Measure A projects as well as other projects; Participating in and supporting the planning and development and early acquisition activities for BART and Downtown East Valley Rail Projects; Managing real property assets including maximizing income, both tangible and intangible, for internal and external customers; In concert with Planning & Programming, managing, administering and coordinating V T A Real Estate assets with focus on maximizing revenue and/or transit ridership, improving station environment and complementing existing or planned zoning for the area. Current tasks include:

- Planning for Right of Way Acquisitions for Silicon Valley Rapid Transit Corridor (BART) and Downtown East Valley Light Rail Transit projects
- 1996 Measure B Real Estate Acquisitions - Caltrain Stations, Tasman East, Capitol and Vasona Light Rail Projects
- Management, Sale or Development of Excess Property
- Management of Additional Leases, Permits, Easements and Issues arising from the Purchase of Union Pacific Rail Road Right of Way Corridor
- Management of Guadalupe Corridor Right of Way Title/Issues Closeout and Title Clearance process
- Management of the Transfer of Parcels to Utility Companies and Respective Cities (Tasman East, Capitol and Vasona Light Rail Projects)

3. MARKETING & CUSTOMER SERVICE:
Customer Service provides V T A customers and potential customers with accurate, timely assistance through a variety of programs and formats.  The department serves the public through a telephone contact center, the Downtown Customer Service Center, community events, site visits, and over the Internet.  Utilizing the on-line  C A R E (Customers Are Resources to Excellence) system, the department facilitates the resolution of customer concerns by working with the operating divisions on customer issues.  In addition, Customer Service distributes printed transit information materials throughout Santa Clara County, coordinates the Youth Outreach Program (Y O P) and "Class Pass" program, and is a liaison with Operations in the                                         Youth Partnership Program (Y P P) with area schools.  Staff promotes and makes presentations to local schools, including information about transit services and safety lessons.  Customer Service also acts as V T A's website content lead.

Public Information is responsible for internal and external communications, particularly news media contacts. It initiates and responds to news media contacts; maintains updated information about V T A and its projects; and publishes biweekly communications from the General Manager (Monday Exchange). Public Information responds to V T A Bus, Light Rail and highway construction emergencies 24 hours a day and establishes and maintains liaison with public information officers from emergency response organizations throughout the region.

Sales Program positively influences ridership and revenue through the sale of fare media programs, communicating vital service and fare information to V T A's customers, and managing the revenue-generating transit advertising contract.

Creative Services acts as the primary resource for creative design and production services for all V T A departments to ensure that V T A materials and formats are well designed, uniform, attractive, and easy to understand.  Creative Services also ensures V T A materials meet V T A corporate standards.

Market Development develops and delivers positive advertising messages to reinforce community top-of-mind awareness that V T A is a safe, reliable and viable transportation choice, and to encourage people to ride and support V T A services. 

Community Outreach encourages public involvement from initial planning through the environmental process and construction phase of every project to completion.  All Community Outreach efforts address community needs, issues and concerns; provide timely and accurate project information regarding V T A projects; enhance two-way communication with other agencies, advisory groups and communities; build understanding and support for transportation and congestion management projects; and, revise outreach efforts to meet project and community needs.

Community Outreach-Pre-Construction provides community outreach efforts for: 1996 Measure B projects (Caltrain Improvements and Highway); 2000 Measure A projects (Downtown East Valley and BART); VTP 2020 projects (I-680/I-880 Cross Connector, U.S. 101/Blossom Hill, U.S. 101/Hellyer, U.S. 101/Stevens Creek, U.S. 101/Mabury, U.S. 101/Trimble, River Oaks Bridge, Palo Alto Transit Center); V T A Enterprise (Facilities Improvement Projects); and other projects as authorized by the V T A Board of Directors.

Community Outreach-Construction provides community outreach efforts for: 1996 Measure B rail and highway projects (Tasman East, Capitol, Vasona and Caltrain Improvements; I-880 Widening, Route 85/U.S. 101 (S) Interchange, Route 237/I-880 Interchange, Route 85/U.S. 101 (N) Interchange, Route 152 Improvements, Biological/Wetlands Mitigation, Route 85 Noise Mitigation); VTP 2020 capital projects    (I-880/Coleman, U.S. 101/Bailey Avenue); Service Operations, Planning and Modifications; V T A Enterprise (Facilities Improvement Projects, Platform Retrofit Project, Low Floor Light Rail Vehicles, etc.); and other projects as authorized by the   V T A Board of Directors.

Community Oriented Design Enhancements (C O D E) and V T P 2020 Projects Design Enhancements (D E) Programs work in partnership with local jurisdictions to integrate the highest quality design enhancements in transportation projects.  C O D E/D E enhances the character of transportation projects to increase transit ridership by creating a positive aesthetic experience for riders, fosters community support for transportation projects by including citizens in the selection and design process for projects, and ensures that projects reflect the identity of the neighborhoods and communities in which they are located, building community pride and project ownership. 

Marketing Administration and Research directs and evaluates all V T A marketing and related programs (including Customer Service, Public Information, Sales, Market Development, Creative Services and Community Outreach); and, contributes to the achievement of V T A's Vision, Mission and Strategic Goals through exemplary, comprehensive marketing support.  Marketing Administration and Research also provides assessments of changes in ridership and market share; enhances appropriate response to current and prospective customer base and key stakeholders; promotes compliance with V T P 2020 and public involvement requirements; enables compliance with V T A Board of Directors, Business Review Team and public recommendations for increased marketing efforts; and, maintains a positive relationship with the news media as well as public and private sector stakeholders.

4.  HIGHWAY PROJECT DEVELOPMENT & ADMINISTRATION:
Highway Project Development and Administration (H P D & A) is responsible for developing the highway improvement projects and studies listed below and for their administrative functions.  Project development activities include planning, conceptual and preliminary engineering, and final design.  The construction phase is managed by V T A Construction Division staff in partnership with Caltrans.  H P D & A duties are accomplished using a combination of full-time V T A staff and consultants that provide direct project implementation support.

The major phases to implement each highway project are:

- Conceptual Alternative Analysis
- Preliminary Engineering (Project Study Report)
- Project Approval (Project Report/Environmental Clearance)
- Environmental documentation and approval
- Final Design (Preparation of Plans, Specifications and Estimates)
- Right-of-way certification and utility relocation coordination
- Advertise, bid and award construction contracts
- Construction of the project

The twelve current Highway Program projects funded by the 1996 Measure B Transportation Improvement Program are:

- I-880 widening from 4 to 6 lanes from Montague Expressway to 101 and an auxiliary lane on southbound I-880 from 101 to the North First Street exit ramp.
- Route 85/87 direct connector ramps for southbound 85 to northbound 87 and southbound 87 to northbound 85 movements.
- Route 101 widening from a 4 lane to a 6 lane plus two HOV (carpool) lanes within the existing median of the freeway between Bernal Road and Cochrane Avenue.
- Routes 85/101 interchange in Mountain View.
- Routes 237/880 interchange to Milpitas (Stage C) HOV lane direct connector ramps from southbound 880 to westbound 237 and eastbound 237 to northbound 880; southbound 880 braided exit ramp to Tasman Drive and eastbound 237 braided ramp to southbound 880.
- Route 87 HOV lane from I-280 to Route 85.
- Route 87 HOV lane from Julian Street to Route 280.
- Routes 85/101 interchange in south San Jose.
- Route 17 improvements from I-280 to Lark Avenue in the Town of Los Gatos.
- Route 152 safety projects.
- Route 85 noise mitigation.
- Consolidated Biological Mitigation Project.

The other current Highway Program projects that are contained in V T P 2020 but are funded by sources other than the 1996 Measure B Transportation Improvement Program are:

- I-880/Coleman Avenue Interchange Improvement.
- Route 152/156 Interchange Improvements.
- I-680/880 Cross Connector Corridor Study.
- Route 101 North Corridor Study.
- Route 101 Central Corridor Study.
- Route 237/101 Corridor Study.
- Route 280/85 Corridor Study.
- Route 101/Bailey Avenue Interchange.
- Route 101/Hellyer Avenue Interchange.
- Route 101/Blossom Hill Road Interchange.
- River Oaks Bicycle/Pedestrian Bridge.
- I-280/I-880/Stevens Creek Boulevard Interchange.


The following is a description of the organizational chart for the Office of the Development and Congestion Mangement Divison: The Chief  Development Officer, Michael P. Evanhoe, is supported by:
Administration.
Marketing and Customer Service Department, Anne-Catherine Vinickas, Director.
Planning and Development Department, James E. Pierson, Director.

Under Planning and Development Department, James E. Pierson, Director:
Congestion Management Program, Carolyn Gonot, Deputy Director.
Transit Planning and Development, Jim Lightbody, Deputy Director.
Highway Development and Administration, John Ristow, Deputy Director.

Position number will be provided later.

DEVELOPMENT AND CONGESTION MANAGEMENT DIVISION
CONGESTION MANAGEMENT PROGRAM AND HIGHWAY DEVELOPMENT & ADMINISTRATION
(In thousand dollars)
Federal Operating Grants:  Fiscal Year 2001/02 Actual 453; Fiscal Year 2002/03 Adopted Budget 500; Fiscal Year 2002/03 Revised Budget 452; Fiscal Year 2003/04 Proposed Budget 452;  Fiscal Year 2004/05 Proposed Budget 500.
State Operating Grants:  Fiscal Year 2001/02 Actual 203; Fiscal Year 2002/03 Adopted Budget 411; Fiscal Year 2002/03 Revised Budget 450; Fiscal Year 2003/04 Proposed Budget 175;  Fiscal Year 2004/05 Proposed Budget 675.
Local Operating Assistance:  Fiscal Year 2001/02 Actual 1,849; Fiscal Year 2002/03 Adopted Budget 1,450; Fiscal Year 2002/03 Revised Budget 1,450; Fiscal Year 2003/04 Proposed Budget 3,161;  Fiscal Year 2004/05 Proposed Budget 400.
Investment Earnings:  Fiscal Year 2001/02 Actual -36; Fiscal Year 2002/03 Adopted Budget ; Fiscal Year 2002/03 Revised Budget ; Fiscal Year 2003/04 Proposed Budget ;  Fiscal Year 2004/05 Proposed Budget 0.
Other Income:  Fiscal Year 2001/02 Actual 1,595; Fiscal Year 2002/03 Adopted Budget 2,057; Fiscal Year 2002/03 Revised Budget 2,047; Fiscal Year 2003/04 Proposed Budget 1,798;  Fiscal Year 2004/05 Proposed Budget 2,189.
Total Revenue:  Fiscal Year 2001/02 Actual 4,064; Fiscal Year 2002/03 Adopted Budget 4,418; Fiscal Year 2002/03 Revised Budget 4,399; Fiscal Year 2003/04 Proposed Budget 5,586;  Fiscal Year 2004/05 Proposed Budget 3,764.
Wages & Salaries:  Fiscal Year 2001/02 Actual 1,367; Fiscal Year 2002/03 Adopted Budget 2,161; Fiscal Year 2002/03 Revised Budget 2,158; Fiscal Year 2003/04 Proposed Budget 2,394;  Fiscal Year 2004/05 Proposed Budget 2,330.
Benefits:  Fiscal Year 2001/02 Actual 611; Fiscal Year 2002/03 Adopted Budget 842; Fiscal Year 2002/03 Revised Budget 842; Fiscal Year 2003/04 Proposed Budget 1,281;  Fiscal Year 2004/05 Proposed Budget 1,384.
Materials & Supplies:  Fiscal Year 2001/02 Actual 1; Fiscal Year 2002/03 Adopted Budget 3; Fiscal Year 2002/03 Revised Budget 2; Fiscal Year 2003/04 Proposed Budget 3;  Fiscal Year 2004/05 Proposed Budget 3.
Professional & Special Services:  Fiscal Year 2001/02 Actual 556; Fiscal Year 2002/03 Adopted Budget 2,521; Fiscal Year 2002/03 Revised Budget 2,115; Fiscal Year 2003/04 Proposed Budget 3,446;  Fiscal Year 2004/05 Proposed Budget 540.
Other Services:  Fiscal Year 2001/02 Actual 392; Fiscal Year 2002/03 Adopted Budget 299; Fiscal Year 2002/03 Revised Budget 407; Fiscal Year 2003/04 Proposed Budget 153;  Fiscal Year 2004/05 Proposed Budget 313.
Data Processing:  Fiscal Year 2001/02 Actual 31; Fiscal Year 2002/03 Adopted Budget 77; Fiscal Year 2002/03 Revised Budget 75; Fiscal Year 2003/04 Proposed Budget 78;  Fiscal Year 2004/05 Proposed Budget 80.
Office Expense:  Fiscal Year 2001/02 Actual 20; Fiscal Year 2002/03 Adopted Budget 22; Fiscal Year 2002/03 Revised Budget 20; Fiscal Year 2003/04 Proposed Budget 22;  Fiscal Year 2004/05 Proposed Budget 23.
Communications:  Fiscal Year 2001/02 Actual 1; Fiscal Year 2002/03 Adopted Budget 13; Fiscal Year 2002/03 Revised Budget 6; Fiscal Year 2003/04 Proposed Budget 7;  Fiscal Year 2004/05 Proposed Budget 7.
Employee Related Expense:  Fiscal Year 2001/02 Actual 36; Fiscal Year 2002/03 Adopted Budget 65; Fiscal Year 2002/03 Revised Budget 52; Fiscal Year 2003/04 Proposed Budget 61;  Fiscal Year 2004/05 Proposed Budget 62.
Leases & Rents:  Fiscal Year 2001/02 Actual 76; Fiscal Year 2002/03 Adopted Budget 104; Fiscal Year 2002/03 Revised Budget 89; Fiscal Year 2003/04 Proposed Budget 89;  Fiscal Year 2004/05 Proposed Budget 91.
Miscellaneous:  Fiscal Year 2001/02 Actual 125; Fiscal Year 2002/03 Adopted Budget 125; Fiscal Year 2002/03 Revised Budget 222; Fiscal Year 2003/04 Proposed Budget 123;  Fiscal Year 2004/05 Proposed Budget 127.
Other Expense:  Fiscal Year 2001/02 Actual 9; Fiscal Year 2002/03 Adopted Budget 15; Fiscal Year 2002/03 Revised Budget 12; Fiscal Year 2003/04 Proposed Budget 15;  Fiscal Year 2004/05 Proposed Budget 15.
Reimbursements:  Fiscal Year 2001/02 Actual -590; Fiscal Year 2002/03 Adopted Budget -1094; Fiscal Year 2002/03 Revised Budget -869; Fiscal Year 2003/04 Proposed Budget -1,085;  Fiscal Year 2004/05 Proposed Budget -1,128.
Operating Expense:  Fiscal Year 2001/02 Actual 2,635; Fiscal Year 2002/03 Adopted Budget 5,153; Fiscal Year 2002/03 Revised Budget 5,131; Fiscal Year 2003/04 Proposed Budget 6,587;  Fiscal Year 2004/05 Proposed Budget 3,847.
Surplus/(Deficit) to Reserves:  Fiscal Year 2001/02 Actual 1,429; Fiscal Year 2002/03 Adopted Budget -735; Fiscal Year 2002/03 Revised Budget -732; Fiscal Year 2003/04 Proposed Budget -1,001;  Fiscal Year 2004/05 Proposed Budget -83.
Beginning Reserves:  Fiscal Year 2001/02 Actual 347; Fiscal Year 2002/03 Adopted Budget 1,776; Fiscal Year 2002/03 Revised Budget 1,776; Fiscal Year 2003/04 Proposed Budget 1,044;  Fiscal Year 2004/05 Proposed Budget 43.
Ending Reserves:  Fiscal Year 2001/02 Actual 1,776; Fiscal Year 2002/03 Adopted Budget 1,041; Fiscal Year 2002/03 Revised Budget 1,044; Fiscal Year 2003/04 Proposed Budget 43;  Fiscal Year 2004/05 Proposed Budget -40.

MAJOR BUDGETARY CHANGES
The Congestion Management Program (C M P), which is kept fiscally separate from V T A Transit, is funded through assessments to local jurisdictions (Member Agencies), federal and state planning grants, program manager fees and payment for services provided.  Highway Project Development & Administration is funded from the budget of each specific capital project.  Due to the sharing of staff and certain services, the budgets for these programs are shown combined.

As requested by Member Agencies, the C M P proposes that FISCAL YEAR 2003-04 Member Agency fees be reduced by 18percent from the projected amount (to $1.78 million).  In addition, due to the state's budget crisis, the C M P has assumed the elimination of $561,000 of S B-45 State Transportation Improvement Program (S T I P) Project Monitoring funds due to their likely deferral or elimination.

To accommodate these revenue reductions, the C M P Work Program has been aggressively modified to eliminate some non-mandated tasks, defer others, and replace consultant and contracted services with C M P staff wherever feasible.  The most significant tasks proposed for Fiscal Year 2003-04 are:

- Updating Valley Transportation Plan (V T P) 2020, the long-range multimodal transportation plan for the county integrating transportation and land use, and completing the V T P 2020 Implementation Plan, which will establish the capital improvement program project selection process and define a ten-year implementation schedule for the first phase of the Capital Improvement Program.
- Preparing the mandated 2003 Congestion Management Plan.
- Continued development of five highway corridor studies: 
* U.S. 101 North (Great America Parkway to Old Oakland Road)
* U.S. 101 Central (Alum Rock Avenue to north of Hellyer Avenue)
* S R 85/I-280 Corridor Improvements (S R 237 to south of Stevens Creek Boulevard)
* S R 237 Corridor (El Camino Real to I-880)
* S R 152/S R 156 Interchange Study.
- Continued development of three gateway studies:
* I-680/I-880 Cross Connector Study (Automall Parkway in Fremont to Montague Expressway in Milpitas)
* Southern Gateway Land Use and Transportation Study (S R 25, S R 152, S R 156, US 101, and S R 129 corridors in San Benito, Monterey, Santa Cruz, Merced and Santa Clara counties)
* Peninsula Gateway Corridor Study (S R 85 from Redwood City to Mountain View).

Since there are no significant changes for Highway Project Development & Administration, the combined effect of the C M P's reduced revenue and modified tasks result in a projected end of Fiscal Year 2003-04 Fund Balance of $43,000.

Santa Clara Valley Transportation Authority
Congestion Management Program
Recommended Fiscal Year 2003/04 Member Assessments in whole dollars, includes 18 percent Reduction, which represents an 18 percent reduction from the fees specified for this year in the strategic six-year financial plan element of the FY 2002-03 CMP budget adopted by the Board of Directors on April 4, 2002.
County of Santa Clara: 201,216 
Campbell: 37,412
Cupertino: 57,480
Gilroy: 27,964
Los Altos: 18,456
Los Altos Hills: 4,920
Los Gatos: 25,470
Milpitas: 57,006
Monte Sereno: 1,478
Morgan Hill: 18,588
Mountain View: 92,574
Palo Alto: 104,758
San Jose: 580,510
Santa Clara: 153,334
Saratoga: 16,058
Sunnyvale: 184,094
Subtotal: 1,581,318
VTA - Managing Agency Contribution: 201,216
TOTAL: 1,782,534

DEVELOPMENT AND CONGESTION MANAGEMENT DIVISION 
PLANNING & DEVELOPMENT AND MARKETING & CUSTOMER SERVICE
(In thousands)
Wages & Salaries:  Fiscal Year 2001/02 Actual 6,558; Fiscal Year 2002/03 Adopted Budget 6,689; Fiscal Year 2002/03 Revised Budget 6,151; Fiscal Year 2003/04 Proposed Budget 6,347;  Fiscal Year 2004/05 Proposed Budget 6,454.
Benefits:  Fiscal Year 2001/02 Actual 2,971; Fiscal Year 2002/03 Adopted Budget 3,039; Fiscal Year 2002/03 Revised Budget 3,310; Fiscal Year 2003/04 Proposed Budget 3,895;  Fiscal Year 2004/05 Proposed Budget 4,323.
Materials & Supplies:  Fiscal Year 2001/02 Actual 5; Fiscal Year 2002/03 Adopted Budget 30; Fiscal Year 2002/03 Revised Budget 30; Fiscal Year 2003/04 Proposed Budget 23;  Fiscal Year 2004/05 Proposed Budget 23.
Professional & Special Services:  Fiscal Year 2001/02 Actual 686; Fiscal Year 2002/03 Adopted Budget 933; Fiscal Year 2002/03 Revised Budget 547; Fiscal Year 2003/04 Proposed Budget 546;  Fiscal Year 2004/05 Proposed Budget 481.
Other Services:  Fiscal Year 2001/02 Actual 1,709; Fiscal Year 2002/03 Adopted Budget 1,743; Fiscal Year 2002/03 Revised Budget 1,518; Fiscal Year 2003/04 Proposed Budget 1,217;  Fiscal Year 2004/05 Proposed Budget 795.
Utilities:  Fiscal Year 2001/02 Actual 1; Fiscal Year 2002/03 Adopted Budget 1; Fiscal Year 2002/03 Revised Budget 1; Fiscal Year 2003/04 Proposed Budget 1;  Fiscal Year 2004/05 Proposed Budget 1.
Data Processing:  Fiscal Year 2001/02 Actual 52; Fiscal Year 2002/03 Adopted Budget 9; Fiscal Year 2002/03 Revised Budget 9; Fiscal Year 2003/04 Proposed Budget 3;  Fiscal Year 2004/05 Proposed Budget 3.
Office Expense:  Fiscal Year 2001/02 Actual 83; Fiscal Year 2002/03 Adopted Budget 82; Fiscal Year 2002/03 Revised Budget 55; Fiscal Year 2003/04 Proposed Budget 48;  Fiscal Year 2004/05 Proposed Budget 48.
Employee Related Expense:  Fiscal Year 2001/02 Actual 168; Fiscal Year 2002/03 Adopted Budget 145; Fiscal Year 2002/03 Revised Budget 60; Fiscal Year 2003/04 Proposed Budget 54;  Fiscal Year 2004/05 Proposed Budget 54.
Leases & Rents:  Fiscal Year 2001/02 Actual 136; Fiscal Year 2002/03 Adopted Budget 94; Fiscal Year 2002/03 Revised Budget 85; Fiscal Year 2003/04 Proposed Budget 93;  Fiscal Year 2004/05 Proposed Budget 93.
Miscellaneous:  Fiscal Year 2001/02 Actual 175; Fiscal Year 2002/03 Adopted Budget 74; Fiscal Year 2002/03 Revised Budget 57; Fiscal Year 2003/04 Proposed Budget 45;  Fiscal Year 2004/05 Proposed Budget 45.
Contribution to Other Agencies:  Fiscal Year 2001/02 Actual 179; Fiscal Year 2002/03 Adopted Budget 162; Fiscal Year 2002/03 Revised Budget 162; Fiscal Year 2003/04 Proposed Budget 201;  Fiscal Year 2004/05 Proposed Budget 205.
Other Expense:  Fiscal Year 2001/02 Actual 2; Fiscal Year 2002/03 Adopted Budget 0; Fiscal Year 2002/03 Revised Budget 0; Fiscal Year 2003/04 Proposed Budget 0;  Fiscal Year 2004/05 Proposed Budget 0.
Total Expense:  Fiscal Year 2001/02 Actual 12,725; Fiscal Year 2002/03 Adopted Budget 13,001; Fiscal Year 2002/03 Revised Budget 11985; Fiscal Year 2003/04 Proposed Budget 12,473;  Fiscal Year 2004/05 Proposed Budget 12,525.
Reimbursements:  Fiscal Year 2001/02 Actual -2,786; Fiscal Year 2002/03 Adopted Budget -2,605; Fiscal Year 2002/03 Revised Budget -2,606; Fiscal Year 2003/04 Proposed Budget -4,308;  Fiscal Year 2004/05 Proposed Budget -3,082.
Net Total:  Fiscal Year 2001/02 Actual 9,939; Fiscal Year 2002/03 Adopted Budget 10,396; Fiscal Year 2002/03 Revised Budget 9,379; Fiscal Year 2003/04 Proposed Budget 8,165;  Fiscal Year 2004/05 Proposed Budget 9,443.

MAJOR BUDGETARY CHANGES
Transit Planning & Development 
Cost Reduction and Efficiency Measures 
Details regarding cost reductions will be provided at a later date.

Reimbursements
In Fiscal Year 2003-04 Recommended Budget, the reimbursements budget is increased by $1.7 million to reflect expected changes in overhead allocation methodology and increased work on capital projects. 

Marketing and Customer Service
Cost Reduction and Efficiency Measures 
In Fiscal Year 2002-03, as part of the effort to reduce costs and improve efficiency, Marketing and Customer Service has undergone a reorganization to streamline its functions.  This reorganization consolidates seven cost centers into three - Ridership and Revenue, Community Outreach, and Marketing Administration. 

By continuing to reduce professional services and media advertising in Fiscal Year 2003-04, an additional $383,000 is saved. 

Details regarding other cost reductions will be provided at a later date.


FISCAL RESOURCES DIVISION

RESPONSIBILITIES
The Fiscal Resources Division fulfills the Controller/Treasurer function for V T A, including financial reporting, accounting, budgeting, internal audit, investment, cash management, payroll, accounts receivable, accounts payable, and farebox revenue services.  In addition, purchasing, messenger/mail services, contracts administration, and disadvantaged business enterprise program are the responsibility of the Fiscal Resources Division.

MAJOR PROGRAMS
Contracts and Materials Management is responsible for commodity and non-professional service procurements; all construction and professional services contracting; the administration of the Pre-Qualification Pilot Program; all aspects of Disadvantaged Business Enterprise (D B E) program compliance; messenger and mail service, central receiving, and surplus property disposal.

Budget and Analysis assists the Chief Financial Officer and the divisions with the development of annual budget requests and prepares V T A's annual budget for the Board of Director's consideration; monitors and modifies the budget throughout the Fiscal Year; and performs financial and operational analyses, and updates forecasts on a regular basis.

Internal Audit is an independent appraisal activity established within V T A to examine and evaluate its activities as a service to management.  The objective of internal audit is to assist members of the organization in the effective discharge of their responsibility by furnishing them with analyses, appraisals, counsel, and information concerning the activities reviewed.  This objective includes effective control at a reasonable cost.

Investment Services is responsible for establishing effective investment strategy, reviewing and recommending changes to V T A's investment policies, analyzing investment portfolio performance, reporting investment performance to the Board of Directors, designing and managing cash management and cash forecasting systems, and monitoring and coordinating the timely receipt of federal and state grant funds.  The day-to-day investment functions include managing and monitoring cash flows as well as banking related activities.

Debt Administration & Business Analysis is responsible for identifying the need for, and implementing debt related transactions as well as dealing with programmatic issues that may have fiscal implications to the organization.  This department also oversees the investment of V T A's debt service reserve funds from the trustee and is responsible for monitoring the transfer of sales tax monies from the State Board of Equalization to the bond trustees and to V T A's bank account.  Additionally, this unit provides analytical support services in the areas of collective bargaining, debt administration, financial capacity analysis and sales tax audits.

Disbursements manages Payroll for V T A employees and A T U retirees, and payments to vendors through Accounts Payable.  This unit reports payroll and remits withheld taxes for V T A employees.  Disbursements is also responsible for preparing financial reports for the V T A/A T U Pension and related trust funds.

Financial Accounting is responsible for maintaining the financial accounting system and records for all of V T A's business and administrative financial activities.  The Financial Accounting Department is also responsible for external and internal financial reporting, revenue billings for projects, program contracts, and other program services.  The cash deposit function is performed here.

Revenue Services is responsible for managing the activities of fare media sales, Bus and Light Rail fare, counting, depositing, and reconciling and any other fare related activities.

The following is a description of the organizational chart for the Fiscal Resources Division: The Chief Financial Officer, Scott Buhrer, is supported by:
Administration.
Business Analysis and Debt Administration, Kimberly Koenig, Manager.
Investment Services, Manny Bagnas, Manager.
Internal Audit, Grace Salandanan, Manager.
Contracts and Materials Management, Tom Smith, Manager.
Controller, Jerry Rosenquist.

Under Controller, Jerry Rosenquist:
Disbursements, Ali Hudda, Manager.
Financial Services, Linda Willis, Manager.
Revenue Services, David Sausjord, Manger.
Budget and Analysis, Victor Chan, Manager.

Position number will be provided later.

FISCAL RESOURCES DIVISION 
(In thousands)
Wages & Salaries:  Fiscal Year 2001/02 Actual 7,841; Fiscal Year 2002/03 Adopted Budget 8,789; Fiscal Year 2002/03 Revised Budget 8,242; Fiscal Year 2003/04 Proposed Budget 8,396;  Fiscal Year 2004/05 Proposed Budget 8,461
Benefits:  Fiscal Year 2001/02 Actual 3,105; Fiscal Year 2002/03 Adopted Budget 3,425; Fiscal Year 2002/03 Revised Budget 3,883; Fiscal Year 2003/04 Proposed Budget 4,492;  Fiscal Year 2004/05 Proposed Budget 5,026.
Materials & Supplies:  Fiscal Year 2001/02 Actual 91; Fiscal Year 2002/03 Adopted Budget 14; Fiscal Year 2002/03 Revised Budget 14; Fiscal Year 2003/04 Proposed Budget 9;  Fiscal Year 2004/05 Proposed Budget 10.
Professional & Special Services:  Fiscal Year 2001/02 Actual 1,242; Fiscal Year 2002/03 Adopted Budget 1,341; Fiscal Year 2002/03 Revised Budget 1,691; Fiscal Year 2003/04 Proposed Budget 971;  Fiscal Year 2004/05 Proposed Budget 989.
Other Services:  Fiscal Year 2001/02 Actual 515; Fiscal Year 2002/03 Adopted Budget 304; Fiscal Year 2002/03 Revised Budget 305; Fiscal Year 2003/04 Proposed Budget 300;  Fiscal Year 2004/05 Proposed Budget 306.
Data Processing:  Fiscal Year 2001/02 Actual -11; Fiscal Year 2002/03 Adopted Budget 5; Fiscal Year 2002/03 Revised Budget 6; Fiscal Year 2003/04 Proposed Budget 3;  Fiscal Year 2004/05 Proposed Budget 3.
Office Expense:  Fiscal Year 2001/02 Actual 113; Fiscal Year 2002/03 Adopted Budget 158; Fiscal Year 2002/03 Revised Budget 160; Fiscal Year 2003/04 Proposed Budget 110;  Fiscal Year 2004/05 Proposed Budget 112.
Communications:  Fiscal Year 2001/02 Actual 5; Fiscal Year 2002/03 Adopted Budget 4; Fiscal Year 2002/03 Revised Budget 4; Fiscal Year 2003/04 Proposed Budget 4;  Fiscal Year 2004/05 Proposed Budget 5.
Employee Related Expense:  Fiscal Year 2001/02 Actual 57; Fiscal Year 2002/03 Adopted Budget 143; Fiscal Year 2002/03 Revised Budget 142; Fiscal Year 2003/04 Proposed Budget 7;  Fiscal Year 2004/05 Proposed Budget 7.
Leases & Rents:  Fiscal Year 2001/02 Actual 37; Fiscal Year 2002/03 Adopted Budget 45; Fiscal Year 2002/03 Revised Budget 8; Fiscal Year 2003/04 Proposed Budget 9;  Fiscal Year 2004/05 Proposed Budget 9.
Miscellaneous:  Fiscal Year 2001/02 Actual 342; Fiscal Year 2002/03 Adopted Budget 640; Fiscal Year 2002/03 Revised Budget 488; Fiscal Year 2003/04 Proposed Budget 338;  Fiscal Year 2004/05 Proposed Budget 345.
Other Expense:  Fiscal Year 2001/02 Actual 3; Fiscal Year 2002/03 Adopted Budget 11; Fiscal Year 2002/03 Revised Budget 10; Fiscal Year 2003/04 Proposed Budget 3;  Fiscal Year 2004/05 Proposed Budget 3.
Total Expense:  Fiscal Year 2001/02 Actual 13,340; Fiscal Year 2002/03 Adopted Budget 14,879; Fiscal Year 2002/03 Revised Budget 14,953; Fiscal Year 2003/04 Proposed Budget 14,642;  Fiscal Year 2004/05 Proposed Budget 15,276.
Reimbursements:  Fiscal Year 2001/02 Actual -1,647; Fiscal Year 2002/03 Adopted Budget -1,511; Fiscal Year 2002/03 Revised Budget -1,537; Fiscal Year 2003/04 Proposed Budget -1,716;  Fiscal Year 2004/05 Proposed Budget -1,783.
Net Total:  Fiscal Year 2001/02 Actual 11,693; Fiscal Year 2002/03 Adopted Budget 13,368; Fiscal Year 2002/03 Revised Budget 13,416; Fiscal Year 2003/04 Proposed Budget 12,926;  Fiscal Year 2004/05 Proposed Budget 13,493.

MAJOR BUDGETARY CHANGES
Cost Reduction Measures
Details regarding cost reductions will be provided at a later date.

OTHER

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

NON-DEPARTMENTAL 
(In thousands)
Benefits:  Fiscal Year 2001/02 Actual 2,535; Fiscal Year 2002/03 Adopted Budget 74; Fiscal Year 2002/03 Revised Budget 47; Fiscal Year 2003/04 Proposed Budget 74;  Fiscal Year 2004/05 Proposed Budget 74.
Tires:  Fiscal Year 2001/02 Actual 8; Fiscal Year 2002/03 Adopted Budget 0; Fiscal Year 2002/03 Revised Budget 0; Fiscal Year 2003/04 Proposed Budget 0;  Fiscal Year 2004/05 Proposed Budget 0.
Insurance:  Fiscal Year 2001/02 Actual -2,000; Fiscal Year 2002/03 Adopted Budget -1,000; Fiscal Year 2002/03 Revised Budget -1,000; Fiscal Year 2003/04 Proposed Budget -1,000;  Fiscal Year 2004/05 Proposed Budget 0.
Miscellaneous:  Fiscal Year 2001/02 Actual -86; Fiscal Year 2002/03 Adopted Budget 0; Fiscal Year 2002/03 Revised Budget 233; Fiscal Year 2003/04 Proposed Budget 233;  Fiscal Year 2004/05 Proposed Budget 0.
Caltrain Capital Contribution:  Fiscal Year 2001/02 Actual 5,733; Fiscal Year 2002/03 Adopted Budget 0; Fiscal Year 2002/03 Revised Budget 0; Fiscal Year 2003/04 Proposed Budget 0;  Fiscal Year 2004/05 Proposed Budget 0.
Debt Service:  Fiscal Year 2001/02 Actual 23,161; Fiscal Year 2002/03 Adopted Budget 25,268; Fiscal Year 2002/03 Revised Budget 24,168; Fiscal Year 2003/04 Proposed Budget 105,735;  Fiscal Year 2004/05 Proposed Budget 23,579.
Other Expense:  Fiscal Year 2001/02 Actual -843; Fiscal Year 2002/03 Adopted Budget 0; Fiscal Year 2002/03 Revised Budget 0; Fiscal Year 2003/04 Proposed Budget 0;  Fiscal Year 2004/05 Proposed Budget 0.
Total Expense:  Fiscal Year 2001/02 Actual 28,508; Fiscal Year 2002/03 Adopted Budget 24,342; Fiscal Year 2002/03 Revised Budget 23,448; Fiscal Year 2003/04 Proposed Budget 105,042;  Fiscal Year 2004/05 Proposed Budget 23,653.
Reimbursements:  Fiscal Year 2001/02 Actual 4,910; Fiscal Year 2002/03 Adopted Budget 3,750; Fiscal Year 2002/03 Revised Budget 3,750; Fiscal Year 2003/04 Proposed Budget 3,750;  Fiscal Year 2004/05 Proposed Budget 2,000.
Net Total:  Fiscal Year 2001/02 Actual 33,418; Fiscal Year 2002/03 Adopted Budget 28,092; Fiscal Year 2002/03 Revised Budget 27,198; Fiscal Year 2003/04 Proposed Budget 108,792;  Fiscal Year 2004/05 Proposed Budget 25,653

MAJOR BUDGETARY CHANGES
Interest Expense
The Fiscal Year 2003-04 Budget for V T A's long term debt obligations is estimated to be $23.6 million and includes expenses from three categories:  interest expense, principal payments, and other bond charges. Interest expense is estimated to be $14.7 million, using a rate of 2.5 percent for variable rate debt obligations (1998 & 2000 Series A Sales Tax Revenue Bonds).  Principal payments equal $8.5 million and other bond charges are estimated to be $0.4 million. Other bond charges include trustee fees, remarketing fees, letter of credit fees, rating fees, and administrative fees.

Refinancing
V T A anticipates refinancing the principal and interest related to the 2002 Bond and Grant Anticipation Note, which mature December 4, 2003. The note was issued to finance the purchase of BART to San Jose right-of-way from Union Pacific Railroad.  The source of funds for the new debt will be the 2000 Measure A sales tax. This refinancing is expected to increase debt service expenditure in Fiscal Year 2003-04 by $82.1 million.

Liability Self Insurance
An actuarial review of the liability self-insurance program is prepared annually.  This program has excess reserves.  V T A proposes to reduce the reserve by $1.0 million in     Fiscal Year 2003-04.  As a result, the same amount of expense for liability insurance will be reduced.  It is not anticipated that there will any excess reserves in Fiscal Year 2004-05.

CAPITAL BUDGET

The current financial situation has forced V T A to severely curtail capital spending.  As in the previous year, the Capital Improvement Program Oversight Committee (C I P O C), which is composed of senior management and supporting staff from all five divisions within V T A, has continued to conduct a thorough review of the entire capital program. This process examined every capital project as to its criticality to our operations, strategic plan, and goals. Consequently, 46 projects were closed, cancelled, scaled back, or budgets reduced, returning over $36 million to reserves to help offset operating deficits. The following is a list of these projects by category.

Capital Project C I P O C Savings 
(In thousand dollars)
Bus Facility Expansion: Number of projects  2; Original Budget V T A Funding 18,513; Original Budget Non-V T A Funding 9,710; Original Budget Total Funding 28,222; Total C I P O C Savings V T A Funding -1,738; Total C I P O C Savings Non V T A Funding 0; Total C I P O C Savings Total Funding -1,738.
Information System, Communications & Techology: Number of projects 11; Original Budget V T A Funding 9,196; Original Budget Non-V T A Funding 0; Original Budget Total Funding 9,196; Total C I P O C Savings V T A Funding -553; Total C I P O C Savings Non V T A Funding 0; Total C I P O C Savings Total Funding -553.
Non-Revenue Vehicles & Facilities: Number of projects 4; Original Budget V T A Funding 4,254; Original Budget Non-V T A Funding 209; Original Budget Total Funding 4,462; Total C I P O C Savings VTA Funding -555; Total C I P O C Savings Non V T A Funding 0; Total C I P O C Savings Total Funding -555.
Operating Equipment: Number of projects 12; Original Budget V T A Funding 2,568; Original Budget Non-V T A Funding 0; Original Budget Total Funding 2,568; Total C I P O C Savings VTA Funding -1,232; Total C I P O C Savings Non V T A Funding 0; Total C I P O C Savings Total Funding -1,232.
Operating Facilities: Number of projects 7; Original Budget V T A Funding 2,959; Original Budget Non-VTA Funding 0; Original Budget Total Funding 2,959; Total C I P O C Savings V T A Funding -1,581; Total C I P O C Savings Non V T A Funding 0; Total C I P O C Savings Total Funding -1,581.
Other: Number of projects 4; Original Budget V T A Funding 423; Original Budget Non-V T A Funding 0; Original Budget Total Funding 423; Total C I P O C Savings V T A Funding -99; Total C I P O C Savings Non V T A Funding 0; Total C I P O C Savings Total Funding -99.
Passenger Facilities: Number of projects 3; Original Budget V T A Funding 45,642; Original Budget Non-V T A Funding 443; Original Budget Total Funding 46,085; Total C I P O C Savings V T A Funding -25,876; Total C I P O C Savings Non V T A Funding 0; Total C I P O C Savings Total Funding -25,876.
Rail Facility Expansion: Number of projects 1; Original Budget V T A Funding 20,571; Original Budget Non-V T A Funding 15,556; Original Budget Total Funding 36,126; Total C I P O C Savings V T A Funding -4,322; Total C I P O C Savings Non V T A Funding 0; Total C I P O C Savings Total Funding -4,322.
Revenue Vehicles & Equipment: Number of projects 2; Original Budget V T A Funding 5,445; Original Budget Non-V T A Funding 0; Original Budget Total Funding 5,445; Total C I P O C Savings V T A Funding -456; Total C I P O C Savings Non V T A Funding -4,989; Total C I P O C Savings Total Funding -5,445.
Total: Number of projects 46; Original Budget V T A Funding 109,571; Original Budget Non-V T A Funding 25,917; Original Budget Total Funding 135,488; Total C I P O C Savings V T A Funding -36,413; Total C I P O C Savings Non V T A Funding -4,989; Total C I P O C Savings Total Funding -41,402.
Some of the major projects that realized savings from this review included: Guadalupe Corridor Platform Retrofit (retrofits of platforms in the Downtown and Southline segments have been deferred); Cerone Division Expansion & Rehabilitation (savings have been realized as a result of low bids); De Anza College Transit Center (project was cancelled); and Guadalupe LRV Facility Improvements and Expansion (project scope has been reduced and refocused on minimum improvements). A complete list of these projects can be found in Appendix E.

Against this backdrop, a high level of scrutiny was paid to requests for new projects and augmentations to existing projects in Fiscal Year 2003-04. As a result, this budget proposes the smallest locally funded V T A Capital Program in eight years. This budget initiates twelve new projects and augments two previously approved projects, for a total new local fund commitment of $4,717,000. There are also 71 unfinished projects (excluding the Measure B Program) being carried forward from prior capital budgets. A summary listing of these carry-forward projects, along with the proposed new and augmented projects, can be found in Appendix F.

Summary of Changes in New Capital
FY 2003-2004: new projects 4,008,000 dollars; augmented projects 1,000,000 dollars; total projects 5,008,000 dollars; new project number 12; augmented project number 2; total project number 14.
FY 2002-2003 As April 03: new projects 4,259,000 dollars; augmented projects 64,104,000 dollars; total projects 68,363,000 dollars; new project number 14; augmented project number 23; total project number 37.
Increase/(Decrease): new projects -251,000 dollars; augmented projects -63,104,000 dollars; total projects -63,355,000 dollars; new project number -2; augmented project number -21; total project number -23.
Percent Increase/(Decrease): new projects -6 percent; augmented projects -98 percent; total projects -93  percent; new project number -14 percent; augmented project number -91 percent; total project number -62 percent.

SANTA CLARA VALLEY TRANSPORTATIN AUTHORITY
Capital Budget FY 2003-2004 
(In thousand dollars)
New Projects
ADA: Approved Project Budgets 0; Recommended Projects and Modifications 200; Recommended Project Budgets 200; Estimated Total Reimbursements 0; Projected Total Net V T A Project Costs 200.
Information Systems, Communications & Technology: Approved Project Budget 0; Recommended Projects and Modifications 494; Recommended Project Budgets 494; Estimated Total Reimbursements 0; Projected Total Net V T A Project Costs 494.
Non-Revenue vehicles & Facilities: Approved Project Budgets 0; Recommended Projects and Modifications 851; Recommended Project Budgets 851; Estimated Total Reimbursements -40; Projected Total Net V T A Project Costs 811.
Operating Equipment: Approved Project Budgets 0; Recommended Projects and Modifications 1,493; Recommended Project Budgets 1,493; Estimated Total Reimbursements 0; Projected Total Net V T A Project Costs 1,493.
Operating Facilities: Approved Project Budgets 0; Recommended Projects and Modifications 971; Recommended Project Budgets 971; Estimated Total Reimbursements 0; Projected Total Net V T A Project Costs 971.
Total New Projects: Approved Project Budgets 0; Recommended Projects and Modifications 4,008; Recommended Project Budgets 4,008; Estimated Total Reimbursements -40; Projected Total Net V T A Project Costs 3,968.
Augmented Projects
Passenger Facilities: Approved Project Budgets 1,598; Recommended Projects and Modifications 250; Recommended Project Budgets 1,848; Estimated Total Reimbursements -1,461; Projected Total Net V T A Project Costs 387.
Operating Equipment: Approved Project Budgets 250; Recommended Projects and Modifications 750; Recommended Project Budgets 1,000; Estimated Total Reimbursements 0; Projected Total Net V T A Project Costs 1,000.
Total Augmented: Approved Project Budgets 1,848; Recommended Projects and Modifications 1,000; Recommended Project Budgets 2,848; Estimated Total Reimbursements -1,461; Projected Total Net V T A Project Costs 1,387.
Carryover Projects
ADA Paratransit: Approved Project Budgets 1,918; Recommended Projects and Modifications 0; Recommended Project Budgets 1,918; Estimated Total Reimbursements -1,230; Projected Total Net V T A Project Costs 688.
Bus Facility Expansion: Approved Project Budgets 79,254; Recommended Projects and Modifications 0; Recommended Project Budgets 79,254; Estimated Total Reimbursements -29,937; Projected Total Net V T A Project Costs 49,317.
Information Systems: Communications & Technology: Approved Project Budgets 29,865; Recommended Projects and Modifications 0; Recommended Project Budgets 29,865; Estimated Total Reimbursements -12,688; Projected Total Net V T A Project Costs 17,177.
Non-Revenue Vehicles: Approved Project Budgets 1,267; Recommended Projects and Modifications 0; Recommended Project Budgets 1,267; Estimated Total Reimbursements 0; Projected Total Net V T A Project Costs 1,267.
Operating Equipment: Approved Project Budgets 8,984; Recommended Projects and Modifications 0; Recommended Project Budgets 8,984; Estimated Total Reimbursements -6,328; Projected Total Net V T A Project Costs 2,656.
Operating Facilities: Approved Project Budgets 10,323; Recommended Projects and Modifications 0; Recommended Project Budgets 10,323; Estimated Total Reimbursements 0; Projected Total Net V T A Project Costs 10,323.
Passenger Facilities: Approved Project Budgets 30,057; Recommended Projects and Modifications 0; Recommended Project Budgets 30,057; Estimated Total Reimbursements -8,196; Projected Total Net V T A Project Costs 21,861.
Rail Facility Expansion: Approved Project Budgets 507,075; Recommended Projects and Modifications 0; Recommended Project Budgets 507,075; Estimated Total Reimbursements -473,484; Projected Total Net V T A Project Costs 33,591.
Revenue Vehicles & Equipment: Approved Project Budgets 314,823; Recommended Projects and Modifications 0; Recommended Project Budgets 314,823; Estimated Total Reimbursements -269,222; Projected Total Net V T A Project Costs 45,601.
Other: Approved Project Budgets 5,610; Recommended Projects and Modifications 0; Recommended Project Budgets 5,610; Estimated Total Reimbursements 0; Projected Total Net V T A Project Costs 5,610.
Total Carryover: Approved Project Budgets 989,174; Recommended Projects and Modifications 0; Recommended Project Budgets 989,174; Estimated Total Reimbursements -801,084; Projected Total Net V T A Project Costs 188,090.
Total Capital Projects: Approved Project Budgets 991,022; Recommended Projects and Modifications 5,008; Recommended Project Budgets 996,030; Estimated Total Reimbursements -802,585; Projected Total Net V T A Project Costs 193,445.

NEW CAPITAL PROJECTS
Information Systems, Communications, and Technology

Information Technology Infrastructure Replacement
This project will replace and/or upgrade Information Technology (I T) infrastructure components. The major areas of infrastructure are Win 2000/N T-based servers, UNIX-based servers, Storage Area Network, Network Area Storage, Network components (including switches and routers), tape library, and peripherals.
Project Budget:  $202,000 
Grant Funding:  $0
Local Funds required:  $202,000

Information Technology Disaster Recovery Site Infrastructure
This project will complete and make fully operational the disaster recovery data center located at the Guadalupe facility. It will acquire necessary equipment and professional services to populate the site in the event of a disaster that may render the River Oaks data center unavailable.  The basic elements include additional equipment to host systems defined as 'A' priority (examples are S A P Payroll, B D T, and e mail), equipment to allow minimal or no onsite staffing from IT, and professional services to re-configure specific systems, network and hardware to bring the site 'on line'.
Project Budget:  $223,000
Grant Funding:  $0
Local Funds required:  $223,000

Network Monitoring
This project would allow V T A to perform network monitoring in-house, replacing on-going outside professional services. The costs of this capital investment would realize a payback in reduced consultant services within one year. The project would include the purchase of server hardware and software.
Project Budget:  $68,585
Grant Funding:  $0
Local Funds required:  $68,585
 
Non-Revenue Vehicles (N R V)

NRV procurement is a planned, on-going activity.  There are 11 vehicles, including one Unimog/car mover ($314,000), one 17500 G V W Truck with bucket ($104,420), six vans ($189,750) and three trucks ($165,000), scheduled for replacement due to their age or mileage.  In addition, this budget will extend the leases on twenty electric vehicles for $77,580. Vehicles used in support of the Capital Program will result in project reimbursement for their usage. Vehicle assignment at V T A utilizes a cascade approach with older, used vehicles assigned to adverse operating conditions such as construction site inspection.  (More information is provided in Appendix G.)
Project Budget:  $850,750
Grant Funding:  $40,000
Local Funds required:  $810,750

Operating Equipment

Facilities and Equipment Emergency Repair Allowance
This ongoing account allows V T A to expedite unplanned repairs that may be required at facilities or to equipment that is essential to normal or safe operations. These funds are administered by the Deputy Director of Operations for Maintenance, and are not used for regular anticipated maintenance activities.
Project Budget:  $400,000
Grant Funding:  $0
Local Funds required:  $400,000

Maintenance Equipment Replacement Program
This capital item allows for the scheduled replacement of equipment that has reached the end of its useful life.  It allows V T A to proactively keep its equipment in a state of good repair, while reducing repair expenses and downtime.  Equipment scheduled for replacement includes 20 Aqueous Solution Parts Tanks, 3 Electric Burden Carriers, 1 Steel Hot Tank, 1 Aluminum Hot Tank, and 1 Personnel Lift.
Project Budget:  $165,000
Grant Funding:  $0
Local Funds required:  $165,000

Rail Digitizer
The Rail Digitizer is a computerized measurement and recording device to obtain precision rail profile measurements. Taking measurements on a regular basis will allow V T A to optimize the rail grinding process by determining areas that need more or less frequent attention. These measurements will also allow determination of the appropriateness of a chosen profile after grinding. This function is currently provided through contracted service. Acquisition of this equipment would allow the service to be provided in-house and on a more frequent basis.
Project Budget:  $50,000
Grant Funding:  $0
Local Funds required:  $50,000

Operating Facilities

Cerone Complex Safety, Communication & Security Equipment
The Cerone expansion project has been re-phased and the budget revised over the past year in response to V T A's financial situation.  Many components that were in Cerone Complex Improvement Project Phases 2 and 3 are no longer budgeted.  As a result of final design work in Phase 1, it is recommended to add items deemed critical to safe and efficient operations. These items include: a new master fire alarm system to replace the existing system that is 25 years old; all underground conduit with pull strings for V T A standard closed circuit television equipment for facility wide surveillance and security in response to the F T A Homeland Security Team Audit; communication and data cables to connect all buildings and tie the communication and data systems together into one single system; a facility-wide public address system to maintain a secure workplace in accordance with F T A Homeland Security Audit; Card Reader security at 6 public access points only; an H V A C master control system for all buildings to monitor and control the levels of cooling, heating and ventilation, and; in-fill pavement in the new bus yard in order to maintain efficient operations and safe movement of buses within the facility. 
Project Budget:  $877,500
Grant Funding:  $0
Local Funds required:  $877,500

Pavement Management Program
This is an ongoing program to keep V T A-owned parking lots and driveways in a state of good repair.  Typically, activities in this program include scheduled slurry sealing and restriping as well as performing minor repairs and repaving, if needed.  Facilities scheduled for this year includes repair and slurry sealing at the Guadalupe Division, Branham and Tamien L R T Park and Ride lots, and Park and Ride lots at Camden/Highway 85, Eastridge, Lawrence Expressway/Moorpark, Main/Calaveras, Page Mill/El Camino, and Santa Clara Caltrain. This request also includes an annual allowance for minor repairs, inspections, spot sealing, and other preventative maintenance. Due to budget constraints, major pavement rehabilitation at Chaboya and River Oaks is being deferred, along with slurry sealing at the Capital, Curtner, Cottle, Snell, and Santa Teresa L R T Park and Ride lots.
Project Budget:  $404,250
Grant Funding:  $0
Local Funds required:  $404,250

Roofing Management Program
This is an on-going, comprehensive long-term program to maximize the useful life and integrity of V T A facilities. This program includes the pro-active scheduling of roofing rehabilitation prior to major failure, as well as unscheduled repairs, seasonal cleaning, annual roof inspections, and emergency leak response. Due to financial constraints, the scheduled re-roofing of the River Oaks Facility in FISCAL YEAR04 is being deferred.
Project Budget:  $216,250
Grant Funding:  $0
Local Funds required:  $216,250

Painting Management Program
This is an on-going, comprehensive long-term program to maintain the appearance and integrity of V T A facilities. This year's request is comprised solely of an annual allowance for unscheduled painting and touch-ups. Due to financial constraints, V T A will be deferring painting of the Guadalupe Division, all stations and transit centers along the Tasman West line, and fuel island epoxy floor coverings at the Chaboya and Cerone Divisions.
Project Budget:  $350,000
Grant Funding:  $0
Local Funds required:  $350,000

Passenger Facilities

Bus Stop Improvement Program
V T A has been committed to maintaining and improving safe bus stops, bus stop accessibility and sound operating conditions for transit vehicles, operators and our customers. In the past, these activities were programmed in three discrete projects: the Bus Stop Duck-out and Pavement Restoration Program, A D A Passenger Access Program, and the Line 22 Articulated Bus Stop Improvements Program.  Combining these programs will improve efficiency of design and repair for these stops, resulting in savings to V T A. This Capital Project Request will improve a total of 5 bus stops that are in the most need of repair.  
Project Budget:  $200,000
Grant Funding:  $0
Local Funds required:  $200,000

AUGMENTED CAPITAL PROJECTS

Operating Equipment

Light Rail T-Signal Retrofit
This project will retrofit light rail T-Signals with the new Manual of Uniform Traffic Control Devices (M U T C D) Standard T-Signal indications for the Tasman West & Tasman East (Zanker-I880) Light Rail Corridors.  The M U T C D is a nationally recognized standard and is being implemented as part of the Tasman East (I880-Hostetter), Vasona, and Capitol Light Rail Corridors. The project is being budgeted in two phases with design already budgeted for $250,000 in FISCAL YEAR 2002-03. This request for $750,000 will fund construction of Tasman only, with upgrade to Guadalupe line being deferred. 
Existing Budget: $250,000
Augmentation: $750,000
Total Grant Funding: $0
Total Local Funds required: $1,000,000

Passenger Facilities

Palo Alto Depot Station Renovation
This project will restore and rehabilitate the Downtown Palo Alto Train Depot.  On the California Historic Register of Structures, the project will extend the useful life of the building and allow the continued use of the building as a Caltrain ticket sales area, V T A operator restroom facility, and potentially may be used for passenger amenities such as food and beverage sales. This augmentation, which is 100percent funded by a contribution from the Caltrain J P B, will upgrade restrooms at the facility to make them compliant with ADA requirements. The City of Palo Alto and Stanford University have contributed approximately $200,000 to date toward the local funding of this project by waiving V T A's lease payments for the Station area over the last two years. V T A is currently working with Palo Alto and Stanford to also waive the current $100,000 lease payment.
Existing Budget: $1,597,675
Augmentation: $250,000
Total Grant Funding: $1,461,118
Total Local Funds required: $386,557

1996 MEASURE B TRANSPORTATION IMPROVEMENT PROGRAM

The voters of Santa Clara County approved Measures A and B on November 6, 1996.  The advisory Measure A delineated a list of priority transportation projects to be undertaken should funding become available.  The validity of 1996 Measure B, which called for a nine-year half-cent general sales tax, was challenged in the courts.  The California State Supreme Court refused to hear an appeal, upholding 1996 Measure B and allowing the sales tax to stand. 

In February 2000, the V T A Board of Directors approved the execution of the Master Agreement with Santa Clara County Board of Supervisors.  The agreement identifies the roles, responsibilities and obligations of County and V T A in the implementation of the 1996 Measure B Transportation Improvement Program (M B T I P).  In the agreement, the County Board of Supervisors has committed actual 1996 Measure B sales tax receipts for use in the completion of the 1996 Measure A Projects.  The Base Case Implementation Plan, approved by the County Board of Supervisors in June 1999, and updated every June thereafter, identifies the 1996 Measure B Projects, along with preliminary budget estimates.  Budget estimates found in this document for 1996 Measure B Projects reflects those recommended for adoption at the June 6, 2003 Joint V T A and County Board Of Supervisors workshop. The ultimate project scopes and estimated costs for completion will be revised based on Baseline Scope, Schedule & Costs submitted to both V T A and County Boards at the completion of preliminary design or project study reports.

The 1996 M B T I P projects are grouped into seven programs: Transit Program, Highway Program, Bicycle Program, Pavement Management Program, Fund Transfer Projects, Expressway Signal Synchronization Program, and Level of Service Intersection Improvement Program. V T A is not involved in the administration of the last two programs. The following is a description of the Transit, Highway, Bicycle, Pavement Management Programs and Fund transfer Programs. 


TRANSIT PROGRAM

The Transit Program includes six major rail projects. The total projected cost is approximately $928 million.

Map of 1996 Measure B Rail Projects - Description
The 1996 Measure B Rail Projects map shows all 1996 Measure B Rail Projects located throughout Santa Clara County.  The 1996 Measure B Rail Projects map displays Tasman East Light Rail Corridor, Capitol Light Rail Corridor, Vasona Light Rail Corridor; previously funded light rail, previously funded commuter rail, Caltrain Commuter Rail - existing to be upgraded and existing/future Intermodal Stations.  The map does not show highway projects, Alameda-Santa Clara Counties Corridor, new light rail vehicles and bikeways. 

Tasman East Light Rail Project
The Tasman East Project extends the current double track light rail system 4.8 miles east of North First Street.  It is being built in three phases and will add seven light rail stations and three park & ride lots.  Two of the stations are elevated on 1.7 miles of elevated structure in the City of Milpitas.  Revenue Service from Baypointe Station to North First Street began in December 1999.    
Project Budget:  $282,401,105  
Funding: $81,793,365 in 1996 M B T I P funds, $100,648,335 in Federal/State/ Local funds, and $99,959,405 from 2001 Series A Sales Tax Revenue Bonds
Estimated Completion: Spring 2001 (Zanker to I-880) and July 2004 (I-880 to Hostetter)  

Vasona Light Rail Project
The Vasona Project extends light rail 5.2 miles from downtown San Jose to downtown Campbell, utilizing Union Pacific freight rail alignment primarily on single track from Diridon Station to Campbell.  In downtown San Jose, it transitions from Diridon Station in a short tunnel to San Fernando Street and Delmas Avenue, and then runs at grade along Delmas to Woz Way where it connects to the existing Guadalupe line.  Eight stations will be constructed in the first phase.  V T A has committed to provide $16.5 million towards the completion of the project. In January 2001, the V T A Board approved an augmentation to this project in the amount of $20.5 million to include the Winchester Extension. 
Project Budget:  $320,362,713 
Funding: $178,895,316 in 1996 M B T I P funds, $85,050,512 in Federal/State/ Local funds, and $56,416,885 from 2001 Series A Sales Tax Revenue Bonds
Estimated Completion: January 2006

Capitol Light Rail Project
The Capitol Project extends light rail in the median of Capitol Avenue another 3.3 miles beyond Tasman East to just south of Alum Rock Avenue.  The project includes double track with four stations, two of which have park-and-ride facilities.  
Project Budget:  $166,542,000
Fund: $122,349,345 in 1996 M B T I P funds, $2,222,251 in Local funds, and $41,970,404 from 2001 Series A Sales Tax Revenue Bonds
Estimated Completion: July 2004 

New Rail Vehicles
The expansion of Tasman East, Capitol, and Vasona Corridors will require approximately 30 new low floor light rail vehicles in order to meet the resultant service levels. V T A has committed to provide funds in excess of the $90 million identified in the M B T I P. 
Project Budget:  $94,162,953
Funding: $90,000,000 in 1996 M B T I P funds and $4,162,953 in V T A funds  
Estimated Completion: Spring 2003

Caltrain Service Improvements
This project will provide a series of station and track improvements for the Caltrain Commuter Rail service within Santa Clara County.  

Projects in million dollars:
Palo Alto - Transit Center: 1996 Measure B Funds 2.5; Other Funds 4.5; Total Funds 7.0.
Sunnyvale - Parking & Transit Center: 1996 Measure B Funds 8.89; Other Funds 0; Total Funds 8.89.
Lawrence - Bus & Parking Improvements: 1996 Measure B Funds 1.85; Other Funds 0; Total Funds 1.85.
Santa Clara - Bus & Parking Improvements: 1996 Measure B Funds 3.66; Other Funds 1.54; Total Funds 5.20; Other Funds Description V T A Funds (Swap).
San Martin - Parking: 1996 Measure B Funds 1.25; Other Funds 0; Total Funds 1.25.
South County Extension Projects: 1996 Measure B Funds 4.0; Other Funds 22.0; Total Funds 26.0; Other Funds Description State TCRP.
Matching Funds Caltrain Capital Program: 1996 Measure B Funds 4.04; Other Funds 0; Total Funds 4.04.
Total: 1996 Measure B Funds 26.19; Other Funds 28.04; Total Funds 54.23.

Project Budget:  $54,230,055
Funding: $26,189,050 in 1996 M B T I P funds and $28,040,005 in Federal/State TCRP/Local funds  
Estimated Completion: January 2005

Community Orientated Design Enhancement (C O D E) Program - Rail
The Board of Supervisors pledged as a goal to incorporate up to 2percent of the construction costs of 1996 M B T I P rail projects for aesthetic enhancements of the projects. This is a placeholder for such costs. The appropriate cost will be allocated back to the respective rail projects. 
Project Budget: $7,187,000 in 1996 M B T I P funds

HIGHWAY PROGRAM

The Highway Program includes eleven major projects, of which construction is being deferred on all or part of five of these projects. The total projected cost of current projects is $470.4 million.

Map of 1996 Measure B Highway Projects -- Description
The 1996 Measure B Highway Projects map shows all ten highway projects located throughout Santa Clara County and project estimated completion date. The map also indicates projects that have added lane capacity, safety improvements, noise mitigation, interchange improvements, expressway signal synchronization and local street/road pavement repairs.  The map does not show rail projects, Alameda-Santa Clara Counties Corridor, new light rail vehicles and bikeways.

Route 880 Widening
This project will widen route 880 between Route 101/North First Street and Montague Expressway from a four to a six-lane freeway.  Widening would occur within the existing 40-foot median and include a 12-foot lane in each direction with a center barrier.  A new eight-lane Coyote Creek/Brokaw Road Interchange Bridge will be constructed.  Also included is a southbound auxiliary lane from Route 101 to North First Street and ramp improvements at the southbound Brokaw Road exit ramp.
Project Budget: $73,871,000
Funding: $60,121,000 in 1996 M B T I P funds and $13,750,000 in SHOPP funds
Completion Date: Fall 2003

Route 85/87 Connector Ramps
This project will complete the existing interchange by adding two connector ramps, including southbound Route 85 to northbound Route 87 and southbound Route 87 to northbound Route 85.  In addition, the project will construct a high occupancy vehicle (HOV) lane in each direction of Route 87 in the median between Route 85 and Branham Lane.
Project Budget: $44,297,000
Funding: $40,797,000 in 1996 M B T I P funds and $3,500,000 in State T C R P funds
Completion Date: Summer 2003

Route 101 Widening
The widening from four to six lanes plus two H O V lanes will occur in the existing median between Burnett Road in Morgan Hill and Metcalf Road in San Jose, providing an additional two lanes in each direction and a 10-foot inside shoulder.
Project Budget: $54,169,000
Funding: $49,769,000 in 1996 M B T I P funds and $4,400,000 in State funds
Completion Date: Spring 2003

Route 85/101 (N) Interchange - Mountain View
This project will improve mainline weaving operations and increase Route 85 and Route 101 interchange capacity while maintaining the existing local interchange access at Old Middlefield Way, North Shoreline Boulevard, and Moffett Boulevard.  The project will replace: the Route 85/Route 101 connector; modify interchange ramps at Moffett Boulevard, North Shoreline Boulevard and Old Middlefield Way; construct additional lanes; and, construct high occupancy vehicle (HOV) direct-connector ramps between northbound Route 85 to northbound Route 101 and southbound Route 101 to southbound Route 85. 
Project Budget: $124,234,000
Funding: $99,234,000 in 1996 MBTIP funds and $25,000,000 in local program reserve  funds
Completion Date: January 2006

Route 237/880 Interchange
This interchange completion project is comprised of two stages including: (1) direct high occupancy vehicle connectors for southbound I-880 to westbound Route 237 and eastbound Route 237 to northbound I-880; (2) a southbound braided exit ramp from I-880 to Tasman Drive interchange. 
Project Budget: $47,843,000
Funding: $25,343,000 in 1996 M B T I P funds and $22,500,000 in S T I P funds
Completion Date: Fall 2004

Route 87 HOV Lanes (Between Branham Lane and I-280)
This project will construct a high occupancy vehicle (H O V) lane in each direction in the existing median between Branham Lane and I-280, a distance of approximately 4.5 miles.  In addition, the project will include installation of ramp meters, H O V on-ramp bypasses and retaining walls. A separate project may include the repair of pavement, median barrier, sound wall, and drainage systems damaged by settlement in this segment of the freeway. Construction of this project is currently deferred due to projected Measure B revenue shortfalls.  V T A is pursuing state GARVEE bond funding in order for the construction to proceed.
Project Budget: $10,548,000 
Funding: $10,548,000 in 1996 M B T I P 
Completion Date: Summer 2003 (Project Development only)

Route 87 HOV Lanes (Between I-280 and Julian Street)
This project widens Route 87, from I-280 to 0.2 miles north of Julian Street, from a four to a six-lane freeway.  The project includes adding a high occupancy (H O V) lane in each direction and installing ramp meters at the entrance ramps.  Construction of this project is currently deferred due to projected Measure B revenue shortfalls.  V T A is pursuing state GARVEE bond funding in order for the construction to proceed.
Project Budget: $14,530,000
Funding: : $14,530,000in 1996 M B T I P 
Completion Date: Spring 2003 (Project Development only)

Route 85/101 (S) Interchange - South San Jose
This project will construct high occupancy vehicle (H O V) direct connectors from northbound Route 101 to northbound Route 85 and southbound Route 85 to southbound Route 101, and construct the southbound Route 101 to northbound Route 85 branch connector.  In addition, the project will include the widening of Route 101 to eight lanes between Bernal Road and Metcalf Road.
Project Budget: $65,832,000
Funding: $40,832,000 in 1996 M B T I P funds and $25,000,000 in State funds (TCRP)
Completion Date: Summer 2004

Route 17 Improvements
The scope of this project includes the following recommended projects: (C) modiFiscal Year San Tomas Expressway between Winchester Boulevard and White Oaks Road; (D) auxiliary lane on northbound 17 between Route 85 and Camden Avenue; (E) auxiliary lane on northbound 17 between Camden Avenue and Hamilton Avenue; (H) improve merge of I-280 with southbound Route 17; (I) Improve Hamilton Ave. off-ramp with added paving and overhead sign; and (J) direct connector from northbound 17 to northbound 85.  Construction of projects E and J are currently deferred due to projected Measure B revenue shortfalls.
Project Budget: $12,017,000
Funding: $12,017,000 in 1996 M B T I P funds
Completion Date: Spring 2003
Route 152 Safety Improvements
Project A (Phase I) -- Widen Route 152 from Route 101 to Miller's Slough
Project A (Phase II) -- Route 101/152 Interchange improvements
Project B -- Widen Route 152 from Miller's Slough through the Llagas Creek Bridge and provide traffic signal at Gilroy Foods/WTI Intersection
Project E -- Intersection improvement at Ferguson Road

Construction of projects B and E are currently deferred due to projected Measure B revenue shortfalls.
Project Budget: $15,014,000
Funding: $11,086,000 in 1996 M B T I P funds and $3,928,000 in City of Gilroy funds
Completion Date: 2002-2004

Route 85 Noise Mitigation
The scope of this project is to reduce freeway noise along a segment of Route 85 between I-280 and Route 87.  The intent is to mitigate noise along this section of the Route 85 corridor.  A noise attenuation study was conducted on a one-mile segment of Route 85 in March 2003.  Construction of this project is currently deferred due to projected Measure B revenue shortfalls.  
Project Budget: $1,159,000
Funding: $1,159,000 in 1996 M B T I P funds
Completion Date: TBD

Community Orientated Design Enhancement (C O D E) Program - Highway
The Board of Supervisors pledged as a goal to incorporate up to 2.0percent of the construction costs of 1996 M B T I P highway projects for aesthetic enhancements of the projects. Due to program shortfalls, this project has been eliminated.
Project Budget: $0

Consolidated Biological Mitigation Site
This project was created to construct a consolidated biological mitigation site to alleviate environmental impacts from eight Measure B projects: 101 Widening, Capitol Light Rail, Vasona Light Rail, I-880 Widening, Route 85/101 (Mountain View), Route 85/101 (San Jose), Route 85/87 Interchange, and Route 17 Improvements.
Project Budget: $6,921,000
Funding: $6,921,000 in 1996 M B T I P funds
Completion Date: January 2007


2000 MEASURE A TRANSIT IMPROVEMENT PROGRAM

In accordance with the 2000 Measure A ballot language, 100percent of the sales tax funds generated by the measure are dedicated to transit. This section describes some key capital projects for which 2000 Measure A funding is committed, including those that will require additional funding from other sources and, in some cases for which full project funding is not yet identified.

Zero-Emission Vehicles and Facilities - In February 2000, the California Air Resources Board (C A R B) adopted regulations to reduce nitrogen oxide (NOx) and particulate matter (P M) emitted by transit buses.  These regulations include the requirement for transit agencies to begin purchasing zero emissions buses (Z E Bs) by the end of this decade.  These regulations also require that transit agencies that operate over 200 transit buses and selected the low emissions diesel path to demonstrate zero emissions buses in transit service and report on the demonstration by the end of 2005.  

In December 2000, V T A's Board of Directors selected the low emissions diesel fuel path in compliance with CARB's Fleet Rule for Urban Transit Operators.  Further, the Board acted to implement a bus procurement program that shifts from a low-emission diesel bus fleet to a zero emission bus fleet (fuel cell technology) beginning with the purchase of zero emission buses in 2008.  

In accordance with the above, V T A is proceeding with a demonstration of fuel cell technology to evaluate the impacts on operations, maintenance and the public.  The Zero Emissions Bus Demonstration Project will be done in conjunction with SamTrans.  In June 2002, The Board of Directors authorized the General Manager to execute a contact with the Gillig Corporation for the purchase of three 40-foot low floor fuel cell powered buses.  In addition to the procurement of the fuel cell buses, the program includes the installation of a hydrogen fueling facility and modification of the Cerone Division maintenance facility to accommodate the fuel cell buses, the training of staff, the public and emergency departments and an evaluation of the overall program.  

Downtown East Valley Transit Improvement Plan - In August 2000, V T A Board of Directors approved a Preferred Investment Strategy for the Downtown East Valley area of San Jose. It includes the following projects:
o Light rail along Santa Clara Street and Alum Rock Avenue from the Capitol LRT line to Downtown San Jose;
o Light rail along the Capitol Expressway from the Alum Rock Station on the Capitol LRT line to the Eastridge Mall area; and 
o Light rail along the Capitol Expressway from the Eastridge Mall area to the Guadalupe LRT line; and 
o Bus Rapid Transit Improvements on Monterey Highway from Downtown San Jose to the Santa Teresa Station on the Guadalupe LRT line.
Low-floor Light Rail Vehicles - V T A has committed to improving accessibility by converting the Light Rail Vehicle (L R V) fleet to low-floor vehicles, with the V T A Board having approved a contract for acquiring 70 low-floor L R Vs.

Silicon Valley Rapid Transit Corridor Project - V T A is conducting an E I S/E I R for the Silicon Valley Rapid Transit Corridor. The project area stretches over 20 miles from Alameda County to the cities of Milpitas, San Jose, and Santa Clara in Santa Clara County. The E I S/E I R is evaluating a BART Extension as well as No-Action and Baseline alternatives. 

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

Caltrain Service Improvements - V T A, in cooperation with the Peninsula Corridor Joint Powers Board (P C J P B), is directly improving or financially supporting many aspects of the Caltrain service. Key elements include system rehabilitation, upgraded station facilities, new express service, expanded service to Gilroy and electrification.

Additional 2000 Measure A Projects:
* New Light Rail Corridors - At least two future light rail corridors are to be identified for construction out of seven potential candidate corridors listed. 
* Transit Access for San Jose International Airport - V T A has participated with Airport Department staff in an ongoing effort to develop a transit plan in conjunction with the Airport expansion project. This project would provide a link from San Jose International Airport to V T A's Guadalupe Light Rail Transit Line on North First Street in San Jose, and to Caltrain and, potentially, future BART in Santa Clara. 
* Altamont Commuter Express (A C E) Rail Service Upgrade - There are two phases of service frequency improvements to A C E service. They are: 
o An initial increase to six trains per day, which was implemented in mid-2001; and
o An additional expansion to twelve trains.
o There are also track and station improvements
* Dumbarton Rail Corridor - The project provides V T A's share of matching funds for a partnership with Alameda and San Mateo counties for the rebuilding of the Dumbarton Rail Corridor. The service would run over the Dumbarton Rail Bridge between the Union City BART station in Alameda County and Caltrain in San Mateo and Santa Clara counties. The project definition and conceptual design work is being initiated with V T A's partners in San Mateo and Alameda Counties.
* Highway 17 Bus Service Improvements - funding for additional buses and service upgrades for the Highway 17 Express Bus service.

FUND TRANSFER PROGRAM
In order to maximize funding opportunities and operational efficiencies, V T A has agreed to secure Federal or State grant funds and sales tax revenue bond proceeds for certain 1996 M B T I P projects and to release 1996 M B T I P funds to fund other projects. Currently, fund transfers have been performed on the Tasman East, Capitol, and Vasona Light Rail Projects. 

Tasman East Light Rail Project Transfer
$72.8 million of Federal and State grants funds and $100.0 million of bond proceeds were transferred into this project and a net of $167.9 million was transferred out for other projects or purposes.

Vasona Light Rail Project Transfer
$51.6 million of Federal and State grants funds and $56.4 million of bond proceeds were transferred into this project and the same amount was transferred out for other projects or purposes.

Capitol Light Rail Project Transfer
$41.9 million of bond proceeds were transferred into this project and the same amount of Measure B funds were transferred out for other projects or purposes.

BICYCLE PROGRAM
The 1996 M B T I P has allocated $12.0 million towards the Bicycle Program, a series of bicycle projects that were developed as part of the Countywide Bicycle Plan. V T A's Board of Directors adopted the Bicycle Plan in October 2000 after approval of a ten-year expenditure plan by V T A and the County Board of Supervisors.

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

OTHER LOCAL PROJECTS
V T A has entered into construction agreements with various cities in the County. The major agreements are:

City of Campbell Participation in the Vasona Light Rail Project 
The City of Campbell is contributing $500,000 towards the construction of the Winchester Station.  The City is also contributing an additional $54,324 towards the design cost of Winchester Station so that V T A will incorporate requested design changes related to parking in the Winchester Station Area. 
Project Budget: $554,324
Funding: $554,324 from the City of Campbell
Completion Date: November 2004

City of San Jose Construction Associated with the Capitol Light Rail Project 
The City of San Jose is funding work by V T A's civil construction contractor for the Capitol Light Rail Project through a cooperative agreement with V T A.  The scope of work includes widening McKee Road, replacing a storm drain box culvert within the intersection of Capitol Avenue and McKee Road, applying a pavement overlay along Capitol Avenue, and installing emergency vehicle preemption equipment at certain intersections. 
Project Budget: $744,991
Funding: $744,911 from the City of San Jose
Completion Date: December 2003

Montague Expressway Widening 
The City of Milpitas Montague Expressway Widening Project was scheduled for construction concurrent with the construction of the Tasman East elevated guideway contract. Since both of these projects involved work at the Montague and Capitol Avenue intersection, the City requested V T A to combine the two projects into a single construction contract. The only work remaining in the agreement is a pavement overlay project that is partially funded by City of Milpitas and should be completed by December 2003.
Project Budget: $1,113,676
Funding: $1,113,676 from the City of Milpitas
Completion Date: December 2003

I-880/Coleman Avenue Interchange
Reconstruct the Coleman Avenue Interchange at I-880 in San Jose to improve access to the Mineta San Jose International Airport.  This project is sponsored by the City of San Jose.
Project Budget: $74,600,000
Funding: $9,000,000 in City of San Jose funds, $5,000,000 in State (T C R P) funds and $60,600,000 in State Transportation Improvement program (S T I P) funds.
Completion Date: 2005

I-680/I-880 Cross Connector Study
Prepare a Conceptual Alternative Analysis for a freeway connector from I-680 to I-880 including preliminary engineering and initial environmental evaluation.
Project Budget: $3,000,000
Funding: $1,000,000 in V T A Gateway Studies funds, $1,000,000 in State (T C R P) funds and $1,000,000 in Alameda County Transportation Improvement Authority funds.
Completion Date: 2004

South County Gateway Study
Study multi-modal transportation improvements at the southern gateway to Santa Clara County to identify cost-effective transportation projects.  Based on preliminary findings in VTP 2020, the following corridors are considered for study: Route 25 from the San Benito County Line to Gilroy; Highway 101 from Gilroy to the San Benito County Line; Highway 156 from Route 152 to the San Benito County Line; and Highway 152 from Gilroy to the junction with 156.
Project Budget: $750,000
Funding: $750,000 in V T A Gateway Studies funds.
Completion Date: 2004

Peninsula Gateway Corridor Study
Study multi-modal transportation improvements in the US 101 and Dumbarton Bridge approaches as a gateway into Santa Clara and San Mateo Counties.  San Mateo is managing this project.
Project Budget: $500,000 
Funding:  $250,000 in V T A Gateway Studies funds, $250,000 from San Mateo C C A G
Completion Date: 2004

Corridor Studies
Study major freeway corridors as defined in VTP 2020 including US 101 North; US 101 Central; Route 237/101 Corridor; Route 85/I-280 Corridor and Route 152/156 Conceptual Alternatives Study.
Project Budget: $2,311,000
Funding: $1,400,000 in Local Program Reserve funds, $600,000 in City of San Jose funds, and $311,000 in City of Sunnyvale funds.
Completion Date: 2004

Route 101/Bailey Avenue Interchange
Construct a new interchange at Route 101 and Bailey Avenue in South San Jose, including extension of Bailey Avenue from Monterey Highway to Route 101.
Project Budget: $25,800,000 
Funding:  $14,800,000 in State Transportation Improvement program (S T I P) funds, $4,500,000 in local S T I P funds, and $6,500,000 in City of San Jose funds
Completion Date: 2005

Route 152/156 Interchange
Reconstruct the Route 152/156 interchange to improve traffic operations and safety.
 Project Budget: $19,500,000 
Funding:  $15,800,000 in State Transportation Improvement program (S T I P) funds, and $3,700,000 in Local Program Reserve funds.
Completion Date: 2006


APPENDIX A
Santa Clara Valley Transportation Authority
Employee Positions by Division and Pay Ranges
Positions Projected as of 7/1/2003
Details will be provided at a later date.

APPENDIX B
Budgeted Positions by Division and Classification
Details will be provided at a later date.

APPENDIX C
Population Data for Santa Clara County by City
Campbell: 1970 24,731; 1980 26,843; 1990 36,048; 2000 38,350; 2001 38,650; 2002 38,400.
Cupertino: 1970 18,216; 1980 34,297; 1990 40,263; 2000 50,900; 2001 51,300; 2002 52,200. 
Gilroy: 1970 12,665; 1980 21,641;1990 31,487; 2000 41,900; 2001 43,550; 2002 43,950.		
Los Altos: 1970 24,872; 1980 25,769; 1990 26,303; 2000 27,950; 2001 28,100; 2002 27,850.	
Los Altos Hills: 1970 6,862; 1980 7,421; 1990 7,514; 2000 7,925; 2001 8,025; 2002 8,000.	
Los Gatos: 1970 23,466; 1980 26,906; 1990 2,7357; 2000 28,750; 2001 29,100; 2002 28,950.	
Milpitas: 1970 27,149; 1980 37,820; 1990 50,686; 2000 63,400; 2001 63,800; 2002 63,800.	
Monte Sereno: 1970 3,074; 1980 3,434; 1990 3,287; 2000 3,490; 2001 3,520; 2002 3,520.	
Morgan Hill: 1970 6,485; 1980 17,060; 1990 23,928; 2000 33,550; 2001 34,600; 2002 34,800.	
Mountain View: 1970 54,206; 1980 58,655; 1990 67,460; 2000 71,400; 2001 72,200; 2002 71,600.	
Palo Alto: 1970 55,999; 1980 55,225; 1990 55,900; 2000 58,900; 2001 60,800; 2002 60,500.	
San Jose: 1970 445,779; 1980 629,400; 1990 782,248; 2000 905,100; 2001 918,800; 2002 918,000.	
Santa Clara: 1970 87,717; 1980 87,700; 1990 93,613; 2000 102,800; 2001 104,600; 2002 104,300	
Saratoga: 1970 27,199; 1980 29,261; 1990 28,061; 2000 30,000; 2001 30,200; 2002 30,450.	
Sunnyvale: 1970 95,408; 1980 106,618; 1990 117,229; 2000 133,000; 2001 134,000; 2002 132,800.	
Unincorporated: 1970 152,181; 1980 127,021; 1990 106,193; 2000 101,400; 2001 102,300; 2002 100,500.				County Total: 1970 1,066,009; 1980 1,295,071; 1990 1,497,577; 2000 1,698,815; 2001 1,723,545; 2002 1,719,620.			Percent of Increase: 1980 21 point 5; 1990 15 point 6; 2000 13 point 4; 2001 0 point 9; 2002 1 point 3.				California: 1970 18,136,045; 1980 23,668,145; 1990 29,760,021; 2000 34,207,000; 2001 34,818,000; 2002 35,037,000.		As a Percentage of California: 1970 5 point 9; 1980 5 point 5; 1990 5 point 0; 2000 5 point 0; 2001 5 point 0; 2002 4 point 9.					
Source:  U.S. Census Bureau; California Department of Finance - Demographic Research Unit (http://www.dof.ca.gov/HTML/DEMOGRAP/e-1text.htm)
(http://www.dof.ca.gov/HTML/DEMOGRAP/table1.xls)
This report provides provisional population estimates for January 1, 2002, and revised estimates for January 1, 2001.

APPENDIX D
Ten Year Summary of Santa Clara County Employment Information
(Annual Average)
Civilian Labor Force (Labor force data are based upon place of residence. Employment includes self-employed, unpaid family workers, domestics, and workers involved in labor-management disputes.) :
Employment: 1993 792 point 1; 1994 807 point 3; 1995 824 point 2; 1996 862 point 8; 1997 909 point 2; 1998 927 point 9; 1999 936 point 3; 2000 982; 2001 959 point 8; 2002 879.
Unemployment: 1993 58 point 3; 1994 53 point 7; 1995 42 point 8; 1996 32 point 2; 1997 28 point 3; 1998 30 point 9; 1999 29 point 2; 2000 19 point 8; 2001 45 point 8; 2002 80 point 6.
Total : 1993 850 point 4; 1994 861; 1995 867; 1996 895; 1997 937 point 5; 1998 958 point 8; 1999 965 point 5; 2000 1001 point 8; 2001 1005 point 6; 2002 959 point 6.
Unemployment Rate in percentage:
County: 1993 6 point 9; 1994 6 point 2; 1995 4 point 9; 1996 3 point 6; 1997 3; 1998 3 point 2; 1999 3; 2000 2; 2001 4 point 6; 2002 8 point 4.
State of California: 1993 9 point 4; 1994 8 point 6; 1995 7 point 8; 1996 7 point 2; 1997 6 point 3; 1998 5 point 9; 1999 5 point 2; 2000 4 point 9; 2001 5 point 4; 2002 6 point 7.
Employment by Industry (Wages and salary employment is reported by place of work. Data now based upon the North American Industry Classification System - NAICS):
Agriculture: 1993 5 point 4; 1994 5 point 1; 1995 4 point 5; 1996 5 point 1; 1997 5 point 1; 1998 5 point 2; 1999 5 point 3; 2000 5; 2001 4 point 6; 2002 4 point 5.
Construction and Mining: 1993 26 point 8; 1994 26 point 6; 1995 28 point 8; 1996 32 point 7; 1997 36 point 5; 1998 41 point 3; 1999 44 point 8; 2000 47 point 6; 2001 48; 2002 43 point 2.
Educational and Health Services: 1993 74 point 6; 1994 77 point 2; 1995 77 point 6; 1996 78 point 5; 1997 81 point 4; 1998 84 point 2; 1999 85 point 5; 2000 85 point 2; 2001 89 point 8; 2002 93 point 2.
Financial Activities: 1993 32 point 7; 1994 31 point 2; 1995 30 point 4; 1996 31 point 4; 1997 32 point 3; 1998 33 point 8; 1999 34 point 2; 2000 34; 2001 35 point 2; 2002 34 point 9.
Government: 1993 87 point 9; 1994 88 point 3; 1995 87 point 8; 1996 87 point 4; 1997 88 point 5; 1998 88 point 9; 1999 91 point 4; 2000 94 point 5; 2001 94 point 6; 2002 97 point 9.
Information: 1993 23 point 2; 1994 23 point 6; 1995 24 point 6; 1996 26; 1997 28 point 1; 1998 29; 1999 32 point 5; 2000 42 point 7; 2001 41 point 9; 2002 34 point 1.
Leisure and Hospitality: 1993 57 point 4; 1994 58 point 5; 1995 61; 1996 62 point 2; 1997 64 point 6; 1998 66 point 7; 1999 68 point 6; 2000 71 point 4; 2001 72; 2002 69 point 1.
Manufacturing: 1993 219 point 1; 1994 213 point 7; 1995 223; 1996 237 point 8; 1997 247 point 2; 1998 246 point 1; 1999 234 point 9; 2000 251 point 7; 2001 240 point 6; 2002 203 point 6.
Other Services: 1993 23 point 9; 1994 24; 1995 24 point 6; 1996 25 point 8; 1997 25 point 5; 1998 26 point 4; 1999 26 point 1; 2000 26 point 7; 2001 26 point 3; 2002 26 point 3.
Professional and Business Services: 1993 126 point 2; 1994 133 point 8; 1995 147; 1996 162 point 8; 1997 181 point 3; 1998 196 point 7; 1999 207 point 1; 2000 225 point 8; 2001 210; 2002 172 point 5.
Trade - Retail: 1993 75 point 1; 1994 74 point 2; 1995 75 point 8; 1996 79 point 9; 1997 82 point 4; 1998 83 point 8; 1999 86 point 6; 2000 90 point 6; 2001 88 point 2; 2002 82 point 9.
Trade - Wholesale: 1993 35 point 1; 1994 34 point 5; 1995 36 point 4; 1996 39 point 3; 1997 41 point 9; 1998 42 point 4; 1999 42 point 3; 2000 42 point 2; 2001 40 point 7; 2002 36 point 3.
Transportation and Public Utilities: 1993 14 point 5; 1994 14 point 6; 1995 14 point 9; 1996 16 point 2; 1997 16 point 7; 1998 16 point 9; 1999 17 point 3; 2000 17 point 5; 2001 16 point 3; 2002 15 point 3.
Total : 1993 801 point 9; 1994 805 point 3; 1995 836 point 4; 1996 885 point 1; 1997 931 point 5; 1998 961 point 4; 1999 976 point 6; 2000 1034 point 9; 2001 1008 point 2; 2002 913 point 8.
Source: California Department of Employment Development, as of March 24, 2003.

APPENDIX E
PROJECTS CLOSED OR SCOPE REDUCED BY THE CAPITAL IMPROVEMENT PROGRAM OVERSIGHT COMMITTEE (C I P O C)
(In thousand dollars)
Line 22 Improvements: Original Budget V T A 2,179; Original Budget Non-V T A 1,310; Original Budget Total 3,489; Total C I P O C Savings VTA -338; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -338.
Cerone Division Rehab & Expansion: Original Budget V T A 16,334; Original Budget Non-V T A 8,400; Original Budget Total 24,734; Total C I P O C Savings VTA -1,400; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -1,400.
Bus Facility Expansion: Original Budget V T A 18,513; Original Budget Non-V T A 9,710; Original Budget Total 28,222; Total C I P O C Savings VTA -1,738; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -1,738.
Enhance Database Integrity: Original Budget V T A 30; Original Budget Non-V T A 0; Original Budget Total 30; Total C I P O C Savings VTA -30; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -30.
ISG Help Desk Phone System: Original Budget V T A 14; Original Budget Non-V T A 0; Original Budget Total 14; Total C I P O C Savings VTA -4; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -4.
FY01 PCST Project: Original Budget V T A 8,050; Original Budget Non-V T A 0; Original Budget Total 8,050; Total C I P O C Savings VTA -229; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -229.
Business Warehouse Data Extraction Tool: Original Budget V T A 350; Original Budget Non-V T A 0; Original Budget Total 350; Total C I P O C Savings VTA -0.74,827; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -1.
Exchange Mail Server: Original Budget V T A 81; Original Budget Non-V T A 0; Original Budget Total 81; Total C I P O C Savings VTA 0; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings 0.
Internet Development Suite: Original Budget V T A 50; Original Budget Non-V T A 0; Original Budget Total 50; Total C I P O C Savings VTA -50; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -50.
IVR Phone System Replacement: Original Budget V T A 150; Original Budget Non-V T A 0; Original Budget Total 150; Total C I P O C Savings VTA -150; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -150.
River Oaks Telephone System Replacement: Original Budget V T A 150; Original Budget Non-V T A 0; Original Budget Total 150; Total C I P O C Savings VTA -9; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -10.
Voice Mail System Replacement: Original Budget V T A 90; Original Budget Non-V T A 0; Original Budget Total 90; Total C I P O C Savings VTA -37; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -37.
FY01 Equipment Purchases: Original Budget V T A 188; Original Budget Non-V T A 0; Original Budget Total 188; Total C I P O C Savings VTA 0; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings 0.
IVR System Upgrades /Trapeze Impl/FY02: Original Budget V T A 43; Original Budget Non-V T A 0; Original Budget Total 43; Total C I P O C Savings VTA -43; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -43.
Info Systems: Original Budget V T A 9,196; Original Budget Non-V T A 0; Original Budget Total 9,196; Total C I P O C Savings VTA -553; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -553.
Non-Rev. Vehicles: Original Budget V T A 1,276; Original Budget Non-V T A 0; Original Budget Total 1,276; Total C I P O C Savings VTA -5; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -5.
Non-Revenue Vehicles (42): Original Budget V T A 915; Original Budget Non-V T A 209; Original Budget Total 1,123; Total C I P O C Savings VTA -22; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -22.
NRV Procurement: Original Budget V T A 980; Original Budget Non-V T A 0; Original Budget Total 980; Total C I P O C Savings VTA -78; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -78.
Non Revenue Vehicle Fleet Procuremnt/FY03: Original Budget V T A 1,083; Original Budget Non-V T A 0; Original Budget Total 1,083; Total C I P O C Savings VTA -449; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -449.
Non-Revenue Vehicles & Facilities: Original Budget V T A 4,254; Original Budget Non-V T A 209; Original Budget Total 4,462; Total C I P O C Savings VTA -555; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -555.
Parts Carousel: Original Budget V T A 650; Original Budget Non-V T A 0; Original Budget Total 650; Total C I P O C Savings VTA -650; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -650.
LRT Signal Priority Retofit: Original Budget V T A 137; Original Budget Non-V T A 0; Original Budget Total 137; Total C I P O C Savings VTA -74; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -74.
MOW Multi-Purpose Vehicle: Original Budget V T A 225; Original Budget Non-V T A 0; Original Budget Total 225; Total C I P O C Savings VTA -15; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -15.
Overhead Safety Restraint at Cerone Minor Maint: Original Budget V T A 70; Original Budget Non-V T A 0; Original Budget Total 70; Total C I P O C Savings VTA -19; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -19.
FY01 Color Printer: Original Budget V T A 50; Original Budget Non-V T A 0; Original Budget Total 50; Total C I P O C Savings VTA -1; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -1.
Facilities & Equipment Emergency Repair Allowance: Original Budget V T A 180; Original Budget Non-V T A 0; Original Budget Total 180; Total C I P O C Savings VTA -180; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -180.
Scheduled Maintenance Equipment Replacement: Original Budget V T A 410; Original Budget Non-V T A 0; Original Budget Total 410; Total C I P O C Savings VTA -20; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -20.
Woz Way Portable Crossover: Original Budget V T A 272; Original Budget Non-V T A 0; Original Budget Total 272; Total C I P O C Savings VTA -101; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -101.
River Oaks HVAC Replacement: Original Budget V T A 60; Original Budget Non-V T A 0; Original Budget Total 60; Total C I P O C Savings VTA -5; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -4.
Parts Carousel at North Division: Original Budget V T A 100; Original Budget Non-V T A 0; Original Budget Total 100; Total C I P O C Savings VTA -29; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -29.
Chaboya Transformer Replacement FY02: Original Budget V T A 100; Original Budget Non-V T A 0; Original Budget Total 100; Total C I P O C Savings VTA -45; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -45.
Maintenance Shop Equip Replacement-FY03: Original Budget V T A 315; Original Budget Non-V T A 0; Original Budget Total 315; Total C I P O C Savings VTA -93; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -93.
Operating Equipment: Original Budget V T A 2,568; Original Budget Non-V T A 0; Original Budget Total 2,568; Total C I P O C Savings VTA -1,232; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -1,232.
VTA Facilities Master Plan: Original Budget V T A 715; Original Budget Non-V T A 0; Original Budget Total 715; Total C I P O C Savings VTA -39; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -39.
ACE Track Improvements: Original Budget V T A 610; Original Budget Non-V T A 0; Original Budget Total 610; Total C I P O C Savings VTA -610; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -610.
Eastridge Transit Center Modifications: Original Budget V T A 290; Original Budget Non-V T A 0; Original Budget Total 290; Total C I P O C Savings VTA -41; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -41.
Chaboya Maintenance Training Firewall: Original Budget V T A 164; Original Budget Non-V T A 0; Original Budget Total 164; Total C I P O C Savings VTA -134; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -134.
Pavement Management Program: Original Budget V T A 1,099; Original Budget Non-V T A 0; Original Budget Total 1,099; Total C I P O C Savings VTA -730; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -730.
Emergency Operations Center: Original Budget V T A 36; Original Budget Non-V T A 0; Original Budget Total 36; Total C I P O C Savings VTA -18; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -18.
L R V OCC Equipment Room HVAC: Original Budget V T A 45; Original Budget Non-V T A 0; Original Budget Total 45; Total C I P O C Savings VTA -9; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -9.
Operating Facilities: Original Budget V T A 2,959; Original Budget Non-V T A 0; Original Budget Total 2,959; Total C I P O C Savings VTA -1,581; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -1,581.
Office Furniture: Original Budget V T A 234; Original Budget Non-V T A 0; Original Budget Total 234; Total C I P O C Savings VTA -25; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -25.
Check Stuffing Machine: Original Budget V T A 18; Original Budget Non-V T A 0; Original Budget Total 18; Total C I P O C Savings VTA -1; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -1.
General Manager Office Reconfiguration: Original Budget V T A 71; Original Budget Non-V T A 0; Original Budget Total 71; Total C I P O C Savings VTA -32; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -32.
Office Furniture Modifications/Reconfig-FY03: Original Budget V T A 100; Original Budget Non-V T A 0; Original Budget Total 100; Total C I P O C Savings VTA -41; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -41.
Other: Original Budget V T A 423; Original Budget Non-V T A 0; Original Budget Total 423; Total C I P O C Savings VTA -99; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -99.
Monterey Hwy Bus Stop : Original Budget V T A 3,466; Original Budget Non-V T A 443; Original Budget Total 3,909; Total C I P O C Savings VTA -950; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -950.
Guadalupe Corridor Platform Retrofit - Phase 2: Original Budget V T A 38,409; Original Budget Non-V T A 0; Original Budget Total 38,409; Total C I P O C Savings VTA -21,500; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -21,500.
De Anza College Transit Center: Original Budget V T A 3,767; Original Budget Non-V T A 0; Original Budget Total 3,767; Total C I P O C Savings VTA -3,426; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -3,426.
Passenger Facilities: Original Budget V T A 45,642; Original Budget Non-V T A 443; Original Budget Total 46,085; Total C I P O C Savings VTA -25,876; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -25,876.
LR Facility Expansion: Original Budget V T A 20,571; Original Budget Non-V T A 15,556; Original Budget Total 36,126; Total C I P O C Savings VTA -4,322; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -4,322.
Rail Facility Expansion: Original Budget V T A 20,571; Original Budget Non-V T A 15,556; Original Budget Total 36,126; Total C I P O C Savings VTA -4,322; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -4,322.
Bus Farebox Replacement: Original Budget V T A 100; Original Budget Non-V T A 0; Original Budget Total 100; Total C I P O C Savings VTA -100; Total C I P O C Savings Non-VTA 0; Total C I P O C Savings -100.
M T C Regional Express Bus Procurement: Original Budget V T A 5,345; Original Budget Non-V T A 0; Original Budget Total 5,345; Total C I P O C Savings VTA -356; Total C I P O C Savings Non-VTA -4989; Total C I P O C Savings -5,345.
Revenue Vehicles & Equipment: Original Budget V T A 5,445; Original Budget Non-V T A 0; Original Budget Total 5,445; Total C I P O C Savings VTA -456; Total C I P O C Savings Non-VTA -4989; Total C I P O C Savings -5,445.
Total: Original Budget V T A 109,571; Original Budget Non-V T A 25,917; Original Budget Total 135,488; Total C I P O C Savings VTA -36,413; Total C I P O C Savings Non-VTA -4,989; Total C I P O C Savings -41,402.

APPENDIX F
SANTA CLARA VALLEY TRANSPORTATION AUTHORITY
FISCAL YEAR 2003-2004 CAPITAL BUDGET SUMMARY
(In thousand dollars):
New Projects
A D A Access/Bus Stop Paving/Line 22 Improvements: Approved Project Budget 0; Recommended project and modification 200; Recommended project budget 200; Estimated total reimbursement 0; Projected total net V T A project cost 200.
A D A Total: Approved Project Budget 0; Recommended project and modification 200; Recommended project budget 200; Estimated total reimbursement 0; Projected total net V T A project cost 200.
I T Infrastructure Replacement & Growth: Approved Project Budget 0; Recommended project and modification 202; Recommended project budget 202; Estimated total reimbursement 0; Projected total net V T A project cost 202.
I T Disaster Recovery Site Infrastructure: Approved Project Budget 0; Recommended project and modification 223; Recommended project budget 223; Estimated total reimbursement 0; Projected total net V T A project cost 223.
Network Monitoring: Approved Project Budget 0; Recommended project and modification 69; Recommended project budget 69; Estimated total reimbursement 0; Projected total net V T A project cost 69.
Information Systems Total: Approved Project Budget 0; Recommended project and modification 494; Recommended project budget 494; Estimated total reimbursement 0; Projected total net V T A project cost 494.
N R V Fleet Procurement Program: Approved Project Budget 0; Recommended project and modification 851; Recommended project budget 851; Estimated total reimbursement -40; Projected total net V T A project cost 811.
Non-Revenue vehicles & Facilities Total: Approved Project Budget 0; Recommended project and modification 851; Recommended project budget 851; Estimated total reimbursement -40; Projected total net V T A project cost 811.
Rail Digitizer: Approved Project Budget 0; Recommended project and modification 50; Recommended project budget 50; Estimated total reimbursement 0; Projected total net V T A project cost 50.
Cerone Safety, Communications & Security Equipment: Approved Project Budget 0; Recommended project and modification 878; Recommended project budget 878; Estimated total reimbursement 0; Projected total net V T A project cost 878.
Facilities/Equipment Emergency Allowance: Approved Project Budget 0; Recommended project and modification 400; Recommended project budget 400; Estimated total reimbursement 0; Projected total net V T A project cost 400.
Maintenance Equipment Replacement Program: Approved Project Budget 0; Recommended project and modification 165; Recommended project budget 165; Estimated total reimbursement 0; Projected total net V T A project cost 165.
Operating Equipment Total: Approved Project Budget 0; Recommended project and modification 1,493; Recommended project budget 1,493; Estimated total reimbursement 0; Projected total net V T A project cost 1,493.
Painting Management Program: Approved Project Budget 0; Recommended project and modification 350; Recommended project budget 350; Estimated total reimbursement 0; Projected total net V T A project cost 350.
Pavement Management Program: Approved Project Budget 0; Recommended project and modification 404; Recommended project budget 404; Estimated total reimbursement 0; Projected total net V T A project cost 404.
Roofing Management Program: Approved Project Budget 0; Recommended project and modification 216; Recommended project budget 216; Estimated total reimbursement 0; Projected total net V T A project cost 216.
Operating Facilities Total : Approved Project Budget 0; Recommended project and modification 971; Recommended project budget 971; Estimated total reimbursement 0; Projected total net V T A project cost 971.
Total New Projects: Approved Project Budget 0; Recommended project and modification 4,007; Recommended project budget 4,007; Estimated total reimbursement -40; Projected total net V T A project cost 3,967.
AUGMENTED PROJECTS
Palo Alto Depot Renovation: Approved Project Budget 1,598; Recommended project and modification 250; Recommended project budget 1,848; Estimated total reimbursement -1,461; Projected total net V T A project cost 387.
Passenger Facilities Total: Approved Project Budget 1,598; Recommended project and modification 250; Recommended project budget 1,848; Estimated total reimbursement -1,461; Projected total net V T A project cost 387.
T-Signal Retrofit Project- FY03: Approved Project Budget 250; Recommended project and modification 750; Recommended project budget 1,000; Estimated total reimbursement 0; Projected total net V T A project cost 1,000.
Operating Equipment Total: Approved Project Budget 250; Recommended project and modification 750; Recommended project budget 1,000; Estimated total reimbursement 0; Projected total net V T A project cost 1,000.
Total Augmented Projects: Approved Project Budget 1,848; Recommended project and modification 1,000; Recommended project budget 2,848; Estimated total reimbursement -1,461; Projected total net V T A project cost 1,387.
CARRYOVER PROJECTS
A D A Pass Access & Sign Pro: Approved Project Budget 1,918; Recommended project and modification 0; Recommended project budget 1,918; Estimated total reimbursement -1,230; Projected total net V T A project cost 688.
A D A Total : Approved Project Budget 1,918; Recommended project and modification 0; Recommended project budget 1918; Estimated total reimbursement -1,230; Projected total net V T A project cost 688.
North Yard Reconstruction: Approved Project Budget 37,318; Recommended project and modification 0; Recommended project budget 37,318; Estimated total reimbursement -20,227; Projected total net V T A project cost 17,091.
Line 22 Improvements: Approved Project Budget 3,151; Recommended project and modification 0; Recommended project budget 3,151; Estimated total reimbursement -1,310; Projected total net V T A project cost 1,841.
Bus Facilities Expansion: Approved Project Budget 15,451; Recommended project and modification 0; Recommended project budget 15,451; Estimated total reimbursement 0; Projected total net V T A project cost 15,451.
Cerone Division Rehab & Expansion: Approved Project Budget 23,334; Recommended project and modification 0; Recommended project budget 23,334; Estimated total reimbursement -8,400; Projected total net V T A project cost 14,934.
Bus Facility Expansion Total: Approved Project Budget 79,254; Recommended project and modification 0; Recommended project budget 79,254; Estimated total reimbursement -29,937; Projected total net V T A project cost 49,317.
Radio Communications System (2): Approved Project Budget 20,030; Recommended project and modification 0; Recommended project budget 20,030; Estimated total reimbursement -12,688; Projected total net V T A project cost 7,343.
Records Archival & Retrieval: Approved Project Budget 288; Recommended project and modification 0; Recommended project budget 288; Estimated total reimbursement 0; Projected total net V T A project cost 288.
Transit Facilities C C T V Demonstration Project: Approved Project Budget 300; Recommended project and modification 0; Recommended project budget 300; Estimated total reimbursement 0; Projected total net V T A project cost 300.
Electronic Scheduling & Runcutting Software: Approved Project Budget 800; Recommended project and modification 0; Recommended project budget 800; Estimated total reimbursement 0; Projected total net V T A project cost 800.
Business Warehouse Hardware Upgrade- Phase 1: Approved Project Budget 150; Recommended project and modification 0; Recommended project budget 150; Estimated total reimbursement 0; Projected total net V T A project cost 150.
Communications Recording System: Approved Project Budget 152; Recommended project and modification 0; Recommended project budget 152; Estimated total reimbursement 0; Projected total net V T A project cost 152.
B D T Operator Card Swipe System: Approved Project Budget 100; Recommended project and modification 0; Recommended project budget 100; Estimated total reimbursement 0; Projected total net V T A project cost 100.
FY 01 P C S T Project: Approved Project Budget 7,821; Recommended project and modification 0; Recommended project budget 7,821; Estimated total reimbursement 0; Projected total net V T A project cost 7,821.
Lan Upgrade -FY01: Approved Project Budget 223; Recommended project and modification 0; Recommended project budget 223; Estimated total reimbursement 0; Projected total net V T A project cost 223.
Information Systems, Communications, & Tech Total: Approved Project Budget 29,865; Recommended project and modification 0; Recommended project budget 29,865; Estimated total reimbursement -12,688; Projected total net V T A project cost 17,177.
Non-Revenue Vehicles (38): Approved Project Budget 633; Recommended project and modification 0; Recommended project budget 633; Estimated total reimbursement 0; Projected total net V T A project cost 633.
Non-Revenue Vehicle Fleet Procuremnt/FY03: Approved Project Budget 634; Recommended project and modification 0; Recommended project budget 634; Estimated total reimbursement 0; Projected total net V T A project cost 634.
Non-Revenue Vehicles Total: Approved Project Budget 1,267; Recommended project and modification 0; Recommended project budget 1,267; Estimated total reimbursement 0; Projected total net V T A project cost 1,267.
GUAD CORR TVM REPLACEMENT: Approved Project Budget 5,268; Recommended project and modification 0; Recommended project budget 5,268; Estimated total reimbursement -4,328; Projected total net V T A project cost 940.
Rail Rehabilitation Project: Approved Project Budget 2,888; Recommended project and modification 0; Recommended project budget 2,888; Estimated total reimbursement -2,000; Projected total net V T A project cost 888.
Generator Replacement: Approved Project Budget 60; Recommended project and modification 0; Recommended project budget 60; Estimated total reimbursement 0; Projected total net V T A project cost 60.
River Oaks H V A C Scheduled Unit Replacements -FY 03: Approved Project Budget 246; Recommended project and modification 0; Recommended project budget 246; Estimated total reimbursement 0; Projected total net V T A project cost 246.
Facilities & Equip Emergency Repair-FY 03: Approved Project Budget 225; Recommended project and modification 0; Recommended project budget 225; Estimated total reimbursement 0; Projected total net V T A project cost 225.
Maintenance Shop Equip Replacement-FY 03: Approved Project Budget 222; Recommended project and modification 0; Recommended project budget 222; Estimated total reimbursement 0; Projected total net V T A project cost 222.
FY 03 Computer Room H V A C: Approved Project Budget 75; Recommended project and modification 0; Recommended project budget 75; Estimated total reimbursement 0; Projected total net V T A project cost 75.
Operating Equipment Total: Approved Project Budget 8,984; Recommended project and modification 0; Recommended project budget 8,984; Estimated total reimbursement -6,328; Projected total net V T A project cost 2,656.
Operator Facilities: Approved Project Budget 806; Recommended project and modification 0; Recommended project budget 806; Estimated total reimbursement 0; Projected total net V T A project cost 806.
VTA Signage Program: Approved Project Budget 3223; Recommended project and modification 0; Recommended project budget 3223; Estimated total reimbursement 0; Projected total net V T A project cost 3223.
Card Readers at Operating Divisions: Approved Project Budget 517; Recommended project and modification 0; Recommended project budget 517; Estimated total reimbursement 0; Projected total net V T A project cost 517.
Bus Stop Duckout & Pavement Restoration Program: Approved Project Budget 1,160; Recommended project and modification 0; Recommended project budget 1,160; Estimated total reimbursement 0; Projected total net V T A project cost 1,160.
Guadalupe Automatic Fire Suppression: Approved Project Budget 70; Recommended project and modification 0; Recommended project budget 70; Estimated total reimbursement 0; Projected total net V T A project cost 70.
Guadalupe Vehicle Wash Modifications: Approved Project Budget 744; Recommended project and modification 0; Recommended project budget 744; Estimated total reimbursement 0; Projected total net V T A project cost 744.
L R T Drainage Improvements at Bayshore/Manila: Approved Project Budget 400; Recommended project and modification 0; Recommended project budget 400; Estimated total reimbursement 0; Projected total net V T A project cost 400.
Painting Management Program: Approved Project Budget 388; Recommended project and modification 0; Recommended project budget 388; Estimated total reimbursement 0; Projected total net V T A project cost 388.
Pavement Management Program: Approved Project Budget 369; Recommended project and modification 0; Recommended project budget 369; Estimated total reimbursement 0; Projected total net V T A project cost 369.
Roofing Management Program: Approved Project Budget 100; Recommended project and modification 0; Recommended project budget 100; Estimated total reimbursement 0; Projected total net V T A project cost 100.
Chaboya Maintenance BayPoint Modifications - FY 03: Approved Project Budget 551; Recommended project and modification 0; Recommended project budget 551; Estimated total reimbursement 0; Projected total net V T A project cost 551.
L R V Emergency Operations Center./I T Disaster Recovery Room: Approved Project Budget 313; Recommended project and modification 0; Recommended project budget 313; Estimated total reimbursement 0; Projected total net V T A project cost 313.
Chaboya Restrooms Rehabilitation/FY03: Approved Project Budget 448; Recommended project and modification 0; Recommended project budget 448; Estimated total reimbursement 0; Projected total net V T A project cost 448.
Pavement Management Program-FY03: Approved Project Budget 487; Recommended project and modification 0; Recommended project budget 487; Estimated total reimbursement 0; Projected total net V T A project cost 487.
Roofing Management Program-FY03: Approved Project Budget 299; Recommended project and modification 0; Recommended project budget 299; Estimated total reimbursement 0; Projected total net V T A project cost 299.
Painting Management Program-FY03: Approved Project Budget 350; Recommended project and modification 0; Recommended project budget 350; Estimated total reimbursement 0; Projected total net V T A project cost 350.
Chaboya Operations Office Modifications: Approved Project Budget 99; Recommended project and modification 0; Recommended project budget 99; Estimated total reimbursement 0; Projected total net V T A project cost 99.
Operating Facilities Total: Approved Project Budget 10,323; Recommended project and modification 0; Recommended project budget 10,323; Estimated total reimbursement 0; Projected total net V T A project cost 10,323.
San Carlos Remediation (New): Approved Project Budget 55; Recommended project and modification 0; Recommended project budget 55; Estimated total reimbursement 0; Projected total net V T A project cost 55.
Construction Claims Support: Approved Project Budget 5,225; Recommended project and modification 0; Recommended project budget 5,225; Estimated total reimbursement 0; Projected total net V T A project cost 5,225.
Rail Systems Design Consultant Services: Approved Project Budget 100; Recommended project and modification 0; Recommended project budget 100; Estimated total reimbursement 0; Projected total net V T A project cost 100.
Surveying G P S System: Approved Project Budget 104; Recommended project and modification 0; Recommended project budget 104; Estimated total reimbursement 0; Projected total net V T A project cost 104.
Hazardous Materials Removal / Facilities Design & Configurations. FY02: Approved Project Budget 67; Recommended project and modification 0; Recommended project budget 67; Estimated total reimbursement 0; Projected total net V T A project cost 67.
Office Furniture Modifications/Reconfiguration - FY 03: Approved Project Budget 59; Recommended project and modification 0; Recommended project budget 59; Estimated total reimbursement 0; Projected total net V T A project cost 59.
Other Total: Approved Project Budget 5,610; Recommended project and modification 0; Recommended project budget 5,610; Estimated total reimbursement 0; Projected total net V T A project cost 5,610.
Mountain View Transit Center: Approved Project Budget 6,250; Recommended project and modification 0; Recommended project budget 6,250; Estimated total reimbursement -5,400; Projected total net V T A project cost 850.
San Jose Transit Mall: Approved Project Budget 184; Recommended project and modification 0; Recommended project budget 184; Estimated total reimbursement 0; Projected total net V T A project cost 184.
Elevator Floor Replacement: Approved Project Budget 560; Recommended project and modification 0; Recommended project budget 560; Estimated total reimbursement 0; Projected total net V T A project cost 560.
Monterey Hwy Bus Stop: Approved Project Budget 2,959; Recommended project and modification 0; Recommended project budget 2,959; Estimated total reimbursement -443; Projected total net V T A project cost 2,516.
I-880 Smart Park: Approved Project Budget 3,083; Recommended project and modification 0; Recommended project budget 3,083; Estimated total reimbursement -2,353; Projected total net V T A project cost 730.
Guadalupe Corridor Platform Retrofit - Phase 2: Approved Project Budget 16,909; Recommended project and modification 0; Recommended project budget 16,909; Estimated total reimbursement 0; Projected total net V T A project cost 16,909.
FY02-"VETAG": Approved Project Budget 111; Recommended project and modification 0; Recommended project budget 111; Estimated total reimbursement 0; Projected total net V T A project cost 111.
Passenger Facilities Total: Approved Project Budget 30,057; Recommended project and modification 0; Recommended project budget 30,057; Estimated total reimbursement -8,196; Projected total net V T A project cost 21,861.
Tasman West: Approved Project Budget 333,393; Recommended project and modification 0; Recommended project budget 333,393; Estimated total reimbursement -316,758; Projected total net V T A project cost 16,635.
L R Facility Expansion: Approved Project Budget 31,805; Recommended project and modification 0; Recommended project budget 31,805; Estimated total reimbursement -15,556; Projected total net V T A project cost 16,249.
Silicon Valley Rapid Transit Corridor: Approved Project Budget 126,680; Recommended project and modification 0; Recommended project budget 126,680; Estimated total reimbursement -126,680; Projected total net V T A project cost 0.
Metro LRT Station Reconstruction: Approved Project Budget 350; Recommended project and modification 0; Recommended project budget 350; Estimated total reimbursement -350; Projected total net V T A project cost 0.
Downtown/East Valley Conceptual Design: Approved Project Budget 9,741; Recommended project and modification 0; Recommended project budget 9,741; Estimated total reimbursement -9,741; Projected total net V T A project cost 0.
FY01 Guadalupe Corridor Right-Of-Way Disposition Project: Approved Project Budget 652; Recommended project and modification 0; Recommended project budget 652; Estimated total reimbursement 0; Projected total net V T A project cost 652.
FY 02 Newhall/BART Maintenance Facility: Approved Project Budget 55; Recommended project and modification 0; Recommended project budget 55; Estimated total reimbursement 0; Projected total net V T A project cost 55.
Z E B Facility Improvements: Approved Project Budget 4,399; Recommended project and modification 0; Recommended project budget 4,399; Estimated total reimbursement -4,399; Projected total net V T A project cost 0.
Rail Facility Expansion Total: Approved Project Budget 507,075; Recommended project and modification 0; Recommended project budget 507,075; Estimated total reimbursement -473,484; Projected total net V T A project cost 33,591.
Replacement Coaches 53: Approved Project Budget 17,232; Recommended project and modification 0; Recommended project budget 17,232; Estimated total reimbursement -12,618; Projected total net V T A project cost 4,614.
Articulated Coaches 40: Approved Project Budget 22,110; Recommended project and modification 0; Recommended project budget 22,110; Estimated total reimbursement -15,701; Projected total net V T A project cost 6,409.
Replacement Coaches 40: Approved Project Budget 14,204; Recommended project and modification 0; Recommended project budget 14,204; Estimated total reimbursement -11,449; Projected total net V T A project cost 2,756.
Cameras on Transit Vans: Approved Project Budget 4,341; Recommended project and modification 0; Recommended project budget 4,341; Estimated total reimbursement 0; Projected total net V T A project cost 4,341.
Revenue Vehicles (17 Replacements plus 15 Expansion/ local fund): Approved Project Budget 13,592; Recommended project and modification 0; Recommended project budget 13,592; Estimated total reimbursement -4,626; Projected total net V T A project cost 8,966.
Clean Diesel Engine: Approved Project Budget 3,640; Recommended project and modification 0; Recommended project budget 3,640; Estimated total reimbursement -1,820; Projected total net V T A project cost 1,820.
Bus Fleet Procurement - 52 buses: Approved Project Budget 19,623; Recommended project and modification 0; Recommended project budget 19,623; Estimated total reimbursement -10,610; Projected total net V T A project cost 9,013.
Z E B: Approved Project Budget 14,051; Recommended project and modification 0; Recommended project budget 14,051; Estimated total reimbursement -14,051; Projected total net V T A project cost 0.
Emissions Retrofit of Bus Diesel Engines: Approved Project Budget 3,829; Recommended project and modification 0; Recommended project budget 3,829; Estimated total reimbursement 0; Projected total net V T A project cost 3,829.
FY01 70 Low Floor LR Vehicles (replace P0369): Approved Project Budget 202,202; Recommended project and modification 0; Recommended project budget 202,202; Estimated total reimbursement -198,347; Projected total net V T A project cost 3,855.
Revenue Vehicles & Equipment Total: Approved Project Budget 314,823; Recommended project and modification 0; Recommended project budget 314,823; Estimated total reimbursement -269,222; Projected total net V T A project cost 45,601.
Total Carryover Projects: Approved Project Budget 989,174; Recommended project and modification 0; Recommended project budget 989,174; Estimated total reimbursement -801,084; Projected total net V T A project cost 188,090.
Total Capital Projects: Approved Project Budget 991,022; Recommended project and modification 5,007; Recommended project budget 996,029; Estimated total reimbursement -802,585; Projected total net V T A project cost 193,444.

APPENDIX G
Santa Clara Valley Transportation Authority
FISCAL YEAR 2003-2004 Budget
Purchase of Non-Revenue Vehicles (N R V's)
(In whole dollars)
Summary - Replacements and Additional Vehicles:
Passenger Vehicles:  Quantity 5; Cost $189,750.
Heavy Duty & Specialized:  Quantity 25; Cost $661,000.
Replacements:
Passenger Vehicles
Mini-Passenger Vans:  Quantity 3; Cost $69,750.
Activans: Quantity 3; Cost $120,000
Total Passenger Vehicles: Quantity 6; Cost $189,750
Heavy Duty & Specialized Vehicles:
Yard/Road Call Truck:  Quantity 3; Cost $165,000.
17500 GVW Truck with bucket:  Quantity 1; Cost $104,420.
Unimog/Car Mover:  Quantity 1; Cost $314,000.
R A V4 E V Lease Renewal:  Quantity 20; Cost $77,580.
Total Heavy Duty & Specialized Vehicles:  Quantity 25; Cost $661,000.
Total Replacement Vehicles:  Quantity 31; Cost $850,750.
No Additions Vehicles in the FY 2003-04 Budget.

APPENDIX H
SANTA CLARA VALLEY TRANSPORTATION AUTHORITY
V T A/ATU Pension Plan
Fiscal Year 2003-04 Expenditure Plan
(In $000's)
REVENUES
VTA Employer Contribution: Fiscal Year 2001/02 Actual 10,302; Fiscal Year 2002/03 Expenditure plan 11,253; Fiscal Year 2003/04 Expenditure Plan 12,011.
Interest Income: Fiscal Year 2001/02 Actual 4,494; Fiscal Year 2002/03 Expenditure plan 16,500; Fiscal Year 2003/04 Expenditure Plan 14,700.
Net Appreciation (Depreciation) on Investments: Fiscal Year 2001/02 Actual -1,350; Fiscal Year 2002/03 Expenditure plan 0; Fiscal Year 2003/04 Expenditure Plan 0.
Total Revenues: Fiscal Year 2001/02 Actual 13,446; Fiscal Year 2002/03 Expenditure Plan 27,753; Fiscal Year 2003/04 Expenditure Plan 26,711.
EXPENSES
Pension Payments to Retirees: Fiscal Year 2001/02 Actual 7,775; Fiscal Year 2002/03 Expenditure Plan 8,333; Fiscal Year 2003/04 Expenditure Plan 9,760.
Medical/Psychiatric Evaluations: Fiscal Year 2001/02 Actual 0; Fiscal Year 2002/03 Expenditure Plan 54; Fiscal Year 2003/04 Expenditure Plan 64.
Administrative Expenses: Fiscal Year 2001/02 Actual 1,222; Fiscal Year 2002/03 Expenditure Plan 975; Fiscal Year 2003/04 expenditure Plan 1,018.
Total Operating Expenses: Fiscal Year 2001/02 Actual 8997; Fiscal Year 2002/03 Expenditure Plan 9362; Fiscal Year 2003/04 Expenditure Plan 10842.
Net Increase in Plan Asset: Fiscal Year 2001/02 Actual 4,449; Fiscal Year 2002/03 Expenditure Plan 18,391; Fiscal Year 2003/04 Expenditure Plan 15,869.
Beginning Fund Balance: Fiscal Year 2001/02 Actual 207,691; Fiscal Year 2002/03 Expenditure Plan 212,140; Fiscal Year 2003/04 Expenditure Plan 230,531.
Ending Fund Balance: Fiscal Year 2001/02 Actual 212,140; Fiscal Year 2002/03 Expenditure Plan 230,531; Fiscal Year 2003/04 Expenditure Plan 246,400.

APPENDIX I
Proposed FISCAL YEAR 2003-04 Basic Fare Structure for Bus, Light Rail and Paratransit Services, and ECO Pass Pricing Information
Fare Category
Adult fares:
Single Ride $1.50
Day Pass $4.50
Day Pass Tokens $4.05
Monthly Pass $52.50
Annual Pass $577.50
Youth fares:
Single Ride $1.00
Day Pass $3.00
Day Pass Tokens $2.70
Monthly Pass $30.00
Annual Pass $330.00
Senior/Disabled fares:
Single Ride $0.75
Day Pass $2.00
Monthly Pass $20.00
Annual Pass $220.00
Express fares:
Single Ride $3.00
Day Pass $9.00
Monthly Pass $90.00
Annual Pass $990.00
Paratransit fares:
One-Way Trip (2x Adult base fare) $3.00
Companion - One-Way Trip (equal to one-way trip) $3.00
Personal Care Attendant No Charge
Open Return Trip (2x one-way trip) $6.00
No Show Charge (equal to one-way trip) $3.00
Second Vehicle Service (5x one-way trip) $15.00
Same-Day Service (4x one-way trip) $12.00
ECO PASS PRICING - These prices are based on the number of employees and the level of V T A service at a given work site. Eco passes are purchased for all full-time, permanent employees at one discounted price per employee. These prices are prorated if an employer joins the program mid-year. The minimum annual contract for Eco Pass is $1,150.
Downtown San Jose:
Downtown San Jose, Number of Employees 1 to 99, 120 dollars
Downtown San Jose, Number of Employees 100 to 2,999, 90 dollars
Downtown San Jose, Number of Employees 3,000 to 14,999, 60 dollars
Downtown San Jose, Number of Employees 15,000, 30 dollars
Areas Served by Bus and Light Rail Transit:
Areas Served by Bus and Light Rail Transit, Number of Employees 1 to 99, 90 dollars
Areas Served by Bus and Light Rail Transit, Number of Employees 100 to 2,999, 60 dollars
Areas Served by Bus and Light Rail Transit, Number of Employees 3,000 to 14,999, 30 dollars
Areas Served by Bus and Light Rail Transit, Number of Employees 15,000, 15 dollars
Areas Served by Bus Only:
Areas Served by Bus Only, Number of Employees 1 to 99, 60 dollars
Areas Served by Bus Only, Number of Employees 100 to 2,999, 30 dollars
Areas Served by Bus Only, Number of Employees 3,000 to 14,999, 15 dollars
Areas Served by Bus Only, Number of Employees 15,000, 7.50 dollars
ECO Pass with Dumbarton and Highway 17 Express
Downtown San Jose:
Downtown San Jose, Number of Employees 1 to 99, 138 dollars
Downtown San Jose, Number of Employees 100 to 2,999, 105 dollars
Downtown San Jose, Number of Employees 3,000 to 14,999, 72 dollars
Downtown San Jose, Number of Employees 15,000, 37.50 dollars
Areas Served by Bus and Light Rail Transit:
Areas Served by Bus and Light Rail Transit, Number of Employees 1 to 99, 108 dollars
Areas Served by Bus and Light Rail Transit, Number of Employees 100 to 2,999, 75 dollars
Areas Served by Bus and Light Rail Transit, Number of Employees 3,000 to 14,999, 42 dollars
Areas Served by Bus and Light Rail Transit, Number of Employees 15,000, 22.50 dollars
Areas Served by Bus Only:
Areas Served by Bus Only, Number of Employees 1 to 99, 78 dollars
Areas Served by Bus Only, Number of Employees 100 to 2,999, 45 dollars
Areas Served by Bus Only, Number of Employees 3,000 to 14,999, 27 dollars
Areas Served by Bus Only, Number of Employees 15,000, 15 dollars

APPENDIX J
Santa Clara Valley Transportation Authority
Fee Schedules As of 04-11-03
RATES FOR PLAN SHEETS, BID SHEETS AND SPECIFICATIONS (Consistent with standard practice, this concerns the sale of documents and records to individuals and contractors who have projects that impact V T A)
Sale of Plan Sheets $10.00 Per Sheet
Sale of Bid Plans/Specifications $2.00 Per Item
PERMIT FEE SCHEDULE (To protect V T A properties and facilities when construction activities are performed on V T A properties and facilities by outside parties)
Permit Fee Schedule
(To protect V T A properties and facilities when construction activities are performed on V T A properties and facilities by outside parties)
Permit Application Fee (Minimum fee charged for all permit applications processed. Additional fees may be assessed.)
non refundable 255 dollars
Light Rail Crossings, Plan Check and Inspection: 
Directional Bore Method per crossing 545 dollars 
Bore and Jack Method per crossing 805 dollars
Bus and Transit Facility, Plan Check and Inspection: 
New P C C Bus Pad per pad 515 dollars
New P C C Shelter Pad per site 280 dollars
Material Lab Fee (If V T A provides service): 
1,200 dollars for Standard P.C.C. Bus Pad (10 foot. by 50 foot.) includes:
1) Sub Base Compaction Tests
2) Material Analysis
3) Base Rock Compaction Tests and Material Analysis
4) 3 Concrete Cylinders or 2 Beams
450 dollars for Asphalt Testing per Location includes compaction test and material analysis (All re tests for failed compaction billed to contractor at 75 dollars per hour for lab related labor cost.)
Other Construction Project Fees: 
(including sidewalk removal or replacement, curb and gutter removal or replacement, trenching, etc.) All additional costs for labor and materials beyond that required above will be assessed based on site/scope specific requirements. Type rates as follow: 
Engineering Fees 55 dollars 
Construction Inspector Fees 49 dollars
Office Administrative Support 29 dollars

GLOSSARY
Accrual Accounting
A method of accounting where revenues are recognized in the accounting period in which they are earned and become measurable, and expenses are recognized in the period incurred, if measurable.

A D A
Americans with Disabilities Act.  Federal civil rights legislation that, among other things, gives disabled persons the right to equal access to fixed route transit service or to comparable paratransit service if they are unable to use fixed route transit.

Adopted Budget
The official budget that has been adopted by V T A Board of Directors.

Appropriation
Legal authorization expressed by budget unit, fund, and cost group granted by the Board to make expenditures and to incur obligations for specific purposes.  Operating appropriations are time period limited and must be expended or encumbered within the time limits.  Capital appropriations have no expiration.

Articulated Bus
A bus usually 55 feet or more in length that bends at a connecting point when the bus turns a corner.

B A A Q M D
Bay Area Air Quality Management District.  Commonly referred to as the "air district," this agency regulates industry and employers to keep air pollution in check, and sponsors programs to clean the air in the San Francisco Bay Area.

Bond
Long-term debt issued by an agency to help finance new acquisitions of property, facilities, and equipment.

Budget Unit
An organizational unit is identical to a cost center. 

Capital Budget
A portion of the annual budget that appropriates funds for the purchase of capital equipment items or for capital projects.  The capital budget includes funds for capital equipment purchases, such as vehicles, construction of new facilities, office equipment, and machinery.  They are distinguished from operating items due to their value (greater than $5,000) and projected useful life (greater than one year).

Capital Project
Expenditure for tangible long-lived assets, such as property and equipment used by V T A in its operations, which is expected to benefit future periods.

Commuter Rail
Local and regional passenger train service between a central city, its suburbs, or another central city.  Caltrain is an example of commuter rail service.

Cost Group
V T A uses the following expenditure and cost-reduction cost groups such as labor costs, non-labor costs, Caltrain contribution, A D A, A C E, debt service and revenues. They are the lowest units of budget funding control.  

Cost Recovery Ratio
A measure of the proportion of transit operating expenses covered by non-subsidy sources.  It is calculated by dividing all of the transit operator's non-subsidy revenues, such as fare box revenue, parking fees, and advertising fees, by the operator's total transit operating expense.

Debt Service
The amount of money required to pay interest and principal on V T A's borrowed funds.

Division
An organizational entity consists of cost centers.

Enterprise Fund
A distinct fiscal entity whose resources are dedicated to a specific purpose, and in which all resources and expenditures must balance.  Expenditure appropriations may exceed revenues if an asset balance is available from the prior period.

Fare Box Revenue
The value of cash, tickets, and pass receipts given by passengers as payment for public transit rides.

Fiscal Year
Period of any 12 consecutive months used as an accounting period.  V T A's Fiscal Year is July 1 through June 30.

F T A
Federal Transit Administration, formerly the Urban Mass Transportation Administration (UMTA).  FTA provides capital and operating funds to V T A.

Fund
A fiscal or accounting entity with a self-balancing set of accounts.  A fund is established for the purpose of carrying on specific activities in accordance with specific limitations.

Grants
A contribution by a government or other organization to support a particular function.  Grants may be classified as either operational or capital, depending upon the grantee.

MTC
Metropolitan Transportation Commission.  M T C is recognized by the state as the Regional Transportation Planning Agency (R T P A) and by the federal government as the Metropolitan Planning Organization (M P O) for the nine counties in the San Francisco Bay Area.  It has 19 commissioners, of which 14 are voting members appointed by local elected officials.  In the five most populous counties, including Santa Clara County, two commissioners are appointed - one by the county board of supervisors and one by the cities selection committee in the county.  In the four less populous counties, the cities nominate candidates to the board of supervisors, which appoints one.  Two other voting members on M T C, to total 16, represent the Association of Bay Area Governments (A B A G) and the San Francisco Bay Conservation and Development Commission (B C D C).  In addition, there are three non-voting members on M T C, representing the state's Business, Transportation & Housing Agency, the U.S. Department of Housing and Urban Development, and the U.S. Department of Transportation.

Operating Budget
A plan of expenditures and proposed sources of financing current service.  The operating budget does not include capital or reserves.

Paratransit
Comparable transportation service required by the Americans with Disabilities Act (A D A) of 1990 for individuals with disabilities who are unable to use fixed-route transportation systems.

Reserves
Amount of funding held back in order to meet probable or possible demands.

S R T P
Short-Range Transportation Plan.  A document that catalogues operating statistics for the transit system and projects future improvements that are scheduled over a ten-year time frame.  The document includes capital and operating budgets.

S TA
State Transit Assistance.  Half of the revenues annually budgeted through the state budget process for the Transportation Planning & Development Account (T P & D) are appropriated to the S T A Program.  Funds are used for mass transit operations, transit coordination projects, and transportation planning.  These funds are apportioned to the regional transportation planning agencies according to a formula based on population and annual transit operator revenues.

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