Report No:

Meeting Date:

Alameda-Contra Costa Transit District

STAFF REPORT

TO: AC Transit Board of Directors

FROM: Michael A. Hursh, General Manager

SUBJECT: Draft FY 2016-17 Capital Budget

BRIEFING ITEM

RECOMMENDED ACTION{S):

Consider receiving a report on the draft proposed FY 2016-17 Capital Budget.

EXECUTIVE SUMMARY:

16-046a

March 23, 2016

The draft FY 2016-17 Capital Budget proposal consists of twenty-five new or continuing projects with a total budget of $28,542,550, which includes a District contribution of $9,273,150 and $19,269,400 in existing or planned grant funding.

The total capital budget including all existing capital projects that were approved in prior budget cycles totals $477.9 million, with the East Bay Bus Rapid Transit (BRT) project accounting for $178 mill ion and the non-BRT projects accounting for $300 million. Of the $477.9 million total, a total of $218.2 million has been expended or accrued as of late February 2016. The approval of the FY 2016-17 proposed capital budget will result in the addition of the $28.5 million and removal of $15.5 million in completed project budgets, which will result in a FY 2016-17 total capital budget of $490.9 million.

BUDGETARY/FISCAL IMPACT:

There is no direct fiscal impact from this report . In the future, staff will return to the Board for approval of the capital budget.

BACKGROUND/RATIONALE:

The proposed annual capital budget for FY 2016-17, consisting of twenty-two new projects and additional funding for five existing projects, is being provided for Board consideration and feedback. The total budget is $28,542,550, made up of $9,273,150 in District capital contribution, $6,115,616 in federal funds, $6, 703,000 in state grant funds, and $6,450, 784 in local funds.

The total capital budget including all existing capital projects that were approved in prior budget cycles totals $477.9 million, with the Bus Rapid Transit project accounting for $178.0 million and the non-BRT projects accounting for $300 million . Of the $477.9 million total, a total of $218.2 million has been expended or accrued as of late February 2016. The approval of the FY 2016-17 proposed capital budget would result in the addition of the $28.5 million and

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Report No. 16-046a Page 2 of 3

removal of $15.5 million in completed project budgets, which will result in a FY 2016-17 total capital budget of $490.9 million. The current capital budget, including the status of projects, is shown in Attachment 2.

The proposed budget provides adequate funding to support existing operations and planned service expansion initiatives in support of agency goals and objectives for this next fiscal year. Capital investments for expansion and state of good repair are necessary for the District to continue to provide existing service and to achieve the approved service level increases. The proposed projects and their funding are shown in Attachment 1 and the current capital budget and project statuses are shown in Attachment 2.

Funding is proposed for twenty-two new projects and five existing projects in FY 2016-17 (Attachment 1). The proposed projects fall into four major categories - Fleet Replacement and Expansion; Facilities and Maintenance; Technology; and Bus Rapid Transit. The table below provides a summary of funding by category.

Category District Federal Regional State Total

Fleet Replacement and Expansion $2.3 $6.1 $6.5 $4.7 $19.6

Facilities and Maintenance $3.2 $0 $0 $0 $3.2

Technology $1.9 $0 $0 $0 $1.9

Bus Rapid Transit $1.9 $0 $0 $2.0 $3.9

Sub-total $9.3 $6.1 $6.5 $6.7 $28.5

Table: FY 2016-17 Proposed Capital Budget by Fund Source

Fleet Replacement and Expansion - The FY 2016-17 Draft Capital Budget programs the remaining required local match funding for the purchase of ten double-decker buses, ten 40-ft urban diesel buses, and ten 40-ft fuel cell buses. The majority of the funding was included in the FY 2015-16 capital budget as a project to replace 37 40-ft urban diesel buses. This purchase is changed to the current mix of buses to better meet the District's immediate service needs. The 40-ft diesel buses and the fuel cell buses represent the continued replacement of a fleet of 102 40-ft Van Hool buses. The fuel cell buses are also a part of a grant application to the Air Resources Board. The ten double-decker buses advance a partial replacement of 39 2003 MCI Transbay coaches. The District also needs to purchase expansion buses to fulfill the increased service levels of the Service Expansion Plan, and is initially programming funds for seven buses. State Cap & Trade funds are being pursued for the seven buses. Finally, the District is programming $800,000 for installing air conditioning units on buses that lack them, and $450,000 for non-revenue vehicle replacement.

Facilities and Maintenance - The draft budget programs $3.2 million in District funds for nine new projects and three annual replacement projects. The new projects represent a mix of important needs at various facilities. The District-wide Facility Assessment project will fund an in-depth structural assessment of District buildings and collect needed state of good repair information. The District-wide Fire Modernization project will continue efforts to upgrade fire alarm equipment. The new operator restrooms project will continue efforts to provide operator restrooms at key layover and terminal points. The proposed budget also funds the addition of badge access at Division 6 and new gates and badge access at Division 2 and Division 6 parking

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Report No. 16-046a Page 3 of 3

structures. Finally, the 66'h Avenue facility has projects to start design of a roof replacement and assess the drainage issues that plague the yard and loading dock, and the Newark facility project will bring the currently empty units up to code so that both facilities are ready to lease.

Technology - The draft budget programs $1.9 million in District funds for four new and two existing projects that replace and upgrade aging equipment and applications. The $1 million for the Peoplesoft system adds back funds that were deferred in the FY 2015-16 mid-year adjustment.

Bus Rapid Transit -The draft budget programs $1.88 million for the existing 27 articulated buses purchased for the BRT project. The current funding for these buses includes $2.5 million in State grant funds from the BRT project as part of the total, which was initially estimated to represent the cost of the required BRT features (extra doors and bridge plates) plus the cost of one bus. Staff has reassessed this cost assignment and determined that the actual BRT project share of the bus cost is only $671,000 based on the estimate of $23,000 per bus for the BRT features. Since the purchase is a replacement of 27 buses, the District's share is the normal cost of the 27 buses. District funds were also added to the project in the mid-year budget adjustments due to the awarded bus bid coming in over budget. Finally, staff expects to receive at least $2 million in Cap & Trade funds from the Low Carbon Transit Operations formula program during the fiscal year, so these funds are being added to the budget now and will be used for the BRT project.

ADVANTAGES/DISADVANTAGES:

There are no disadvantages to receiving this report.

ALTERNATIVES ANALYSIS:

Through the process for programming the capital budget, staff reviewed outstanding project requests and District needs and priorities. Based on these factors and the funding available, staff assembled the proposed capital budget. Staff will also evaluate any suggested alternatives proposed by the Board in support of a capital budget proposal for adoption with the final FY 2016-17 budget.

PRIOR RELEVANT BOARD ACTIONS/POLICIES:

16-046- Proposed FY 2016-17 Budget Goals and Objectives

ATIACHMENTS: 1: FY 2016-17 Draft Capital Budget 2: Existing District Capital Budget

Executive Staff Approval:

Reviewed by:

Prepared by:

Claudia L. Allen, Chief Financial Officer

Donald Eckert, Director of Budget & Grants Michael Cannell, Executive Director of Planning & Engineering Chris Andrichak, Manager, Capital Planning & Grants Laramie Bowron, Senior Capital Planning Specialist

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FY17 DRAFT Capital Budget - New Projects

FY 2017 DRAFT CAPITAL BUDGET

3/9/2016

SR 14-046a Attachment 1

C Existing . D . . 0 · . F d I R . I St ategory . ? Project escnpt1on 1stnct e era eg1ona ate Total Project.

Vehicles Expand (3) 60ft Artie Urban Buses - Diesels 2,583,000 2,583,000

_V_e_h_ic_le_s__ _ ___ E_x_pa_n_d_(_4) 40ft Urban Buses 2,120,000 2,120,000

Veh icles Purchase (10) Double-Deck Diesel Buses 628,800 5, 136,463 1,493,237 7,258,500

Vehicles Purchase (10) 40ft Urban Buses - Fuel Cell ZEB 421,800 979,153 4,957,547 6,358,500

Vehicles Non Revenue Fleet Replacement 450,000 450,000 V!;!hicles HVAC Units for Buses 800,000 800,000

600,000

540,000

500,000

250,000

98,550

200,000

200,000

200,000

200,000

150,000

200,000

50,000

10,000 Facilities Finance Equipment Replace 10,000

Technology Yes - 2125 PeopleSoft Upgrade 1,000,000 1,000,000 Technology IS-Wireless Network Upgrade 248,000 248,000 Technology IS-ATI SIP Cisco UCM Platform 200,000 200,000

196,000

150.000

101,000

2,000,000 BRT Yes - 2004 Additional BRT Project Funds Expe_ct_e_d _________ ______________ ---'-____ 2...:.,_00_0..:.,o_o_o

1,879,000 BRT Yes - 2068 Purchase (27) BRT Vehicles 1,879,000

TOTAL 9,273, 150 6, 115,616 6,450,784 6, 703,000 28,542,550

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EXISTING CAPITAL PROGRAM STATUS OVERVIEW

Category ID Proiect Proiect Manager

Corridor 2042 Line 51 Corridor TPI Buller, Wilmer

Corridor 2054 San Leandro BART Terminal Callaway, Joe

Environmental 2028 Hazmat Berms & Awnings Ruslen, Dan

Environmental 2091 D4-Environmental Cleanup Ruslen, Dan

Environmental 2127 DWide Upgrade Abvgrnd Oil Tnks Ruslen, Dan

Facil ities 1808 D2 Storm Drains Callaway, Joe

Facilities 1856 State of Good Repair Asset Mgm Broadbent, Patricia

Facilities 2010 Re-Work GO Office Config Takara, Darrell

Facilities 2011 GO-Fire Code Compliance Michels, Craig

Facilities 2012 Boardroom Audiovisual Refresh Hienzsch, Magnus

Facilities 2023 D6-Reroof Mack Bldg Hienzsch, Magnus

Facilities 2025 DB-Pavement Rehabilitation Michels, Craig

Facilities 2026 D2- Replace concrete at Fl Callaway, Joe

Facilities 2027 D2-Hydrogen Maintenance Bay Callaway, Joe

Facilities 2032 Finance Equipment Replacement Cunradi, James

Facili ties 2044 D4 Garage Deck Repair.Phase I Hienzsch, Magnus

Facilities 2056 D2-Trans Bldg Roof Repl/Equip Michels. Craig

Facilities 2063 SGR GO Projects Hienzsch, Magnus

Facilities 2064 Richmond Parkway TC Rehab Hass, Michael

Facilities 2065 Dist.Wide Pigeon Abatement Wrzesinski, Richard

Facilities 2071 GO-Gust Serv Renovation Hienzsch, Magnus

Facilities 2079 Emergency Facility Repairs Michels, Craig

Facilities 2080 Maintenance Equip Replacement Llamas, Salvador

Facilities 2082 Contra Costa College TC Rehab Hass, Michael

Facilities 2089 Bus Washer Rehabs Callaway, Joe

Facilities 2090 External Painting of Divisions Wrzesinski, Richard

Facilities 2094 Lift & Hoist Replacement Callaway, Joe

Facilities 2095 D3 Rehabilitation Hass, Michael

Facilities 2096 OCC Relocation Michels, Craig

Facilities 2101 D2 Maintenance Bldg Seismic Pochiraju, Ramakrishna

Facilities 2120 Fuel Additive Store/Dispense TBD

Facilities 2123 04 Rehabilitation TBD

Facilities 2126 GO-Replace Boiler TBD

Facil ities 2128 Operator Facil ity Upgrades TBD

Facilities 2130 New Operator Restrooms TBD

Facilities 2132 Ardenwood Parking Study/Imp! Rawlings, Lois

Facilities 10011 District-wide Elevator Modern. Michels, Craig

Facilities 10016 D2/D6-Study Parking Structures Callaway, Joe

Facilities 10033 District-Wide Weatherproofing Hienzsch, Magnus

Facilities 10036 GO Weatherization Hienzsch, Magnus

IS/IT 1829 Internal Text Messaging Signs Ruslen, Dan

IS/IT 1861 CAD/AVL Real Time Bus Comm Lewis-Williams, Sandra

IS/IT 2029 IS-Claims System Takara, Darrell

IS/IT 2033 NextBus Replacement Newhouse, Stephen

IS/IT 2081 IS-Equipment Replacement Takara, Darrell

IS/IT 2105 IS-EMC SAN Replacement Carvalho, Michael

IS/IT 2106 IS-Upgrade PSoft Version 9.2 Sooch, Manjit

Approved Current Budget

Expended+

Budget Accrued

11 ,125,445 11,125,445 10,646,418

4,250,026 4,250,026 715,904

554,600 554,600 275

200,000 200,000 131,746

1,050,000 1,050,000 6,000

1,389,035 1,389,035 167,089

6,166,225 6, 166,228 1,098,087

200,000 200,000 42,363

234,020 234,020 192,971

710,000 710,000 238,879

1,208,000 1,208,000

500,000 500,000 114,967

209,000 209,000 559

858,477 858,477 140,321

10,000 10,000 -532,000 532,000 51 ,170

552,500 552,500 101,023

131,675 131,675 119,127

3,020,000 786,000 50,255

101 ,538 101,538 101 ,538

147,325 147,325 675

200,000 200,000 -196,600 196,000 -825,000 825,000 49,263

3,000,000 3,000,000 51,238

700,000 700,000 -1,500,000 1,500,000 37,894

18,000,000 18,000,000 4,164,769

2,560,000 2,560,000 961,191

102,500 102,500 100,919

100,000 100,000 -1,000,000 1,000,000 -

70,000 70,000 -57,000 57,000 445

250,000 250,000 1,262

140,000 140,000

3,036,897 3,036,897 2,869,596

74,940 74,940 74,940

128,555 128,555 101,907

4,673,720 4,673,720 2,025,993

1,299,371 1,299,371 1,299,371

31,519,641 30,534,342 17,275,586

143,000 143,000 44,700

120,000 120,000 100,422

160,000 160,000 68,010

750,000 750,000 588,903

970,000 970,000

% Expended+

Accrued

96%

17%

0%

66%

1%

12%

18%

21%

82%

34%

0%

23%

0%

16%

0%

10%

18%

90%

2%

100%

0%

0%

0%

6%

2%

0%

3%

23%

38%

98%

0%

0%

0%

1%

1%

0%

94%

100%

79%

43%

100%

55%

31%

84%

43%

79%

0%

SR 16-046a

Attachment 2

Status

Complete

Complete

Complete

Complete

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Category ID ProJect Proiect Manager Approved

Current Budget Expended+ % Expended+

Status Budget Accrued Accrued

IS/IT 2116 IS-Network Core Equip Upgrade Carvalho, Michael 270,000 270,000 208,516 77%

IS/IT 2117 IS-Network Firewall Upgrade Carvalho, Michael 95,000 95,000 80,032 84%

IS/IT 2118 IS-Replace Badge readers Carvalho, Michael 150,000 150,000 7,296 5%

IS/IT 2121 IS-Rebuild ACTransit Website Sooch, Manjit 245,000 245,000 - 0%

IS/IT 2124 IS-Replace Network Fiber Carvalho, Michael 210,000 210,000 - 0%

IS/IT 2125 Planning & Budgeting System Sooch, Manjit 1,200,000 1,200,000 - 0%

IS/IT 2129 TEC Auditorium AV Refresh Takara, Darrell 50,000 50,000 - 0%

IS/IT 10019 Hastus Integrated Operations Broadbent, Patricia 3,515,000 3,515,000 2,878,346 82%

Marketing 2055 Spectrum Ridership Growth Wake, Victoria 2,036,232 2,036,232 1,437,371 71%

Marketing 2109 Mobility Marketing through 21 1 Wake, Victoria 300,000 300,000 117,179 39%

Other 2078 Major Corridor Study Cunradi, James 560,000 560,000 540,441 97%

Other 2107 Core Capacity Transit Study Cunradi, James 50,000 50,000 - 0%

Other Various T JPA Capital Contribution Andrichak, Chris 29,480,178 29,480.178 22,086,220 75%

Safety 2059 D2/0CC Fire Suppression System Ruslen, Dan 31,250 31 ,250 - 0%

Safety 2067 Frontline Security Training Jackson, Kerry 260,000 260,000 141,151 54%

Safety 2072 GO Rpl Garage/Parking Gates Michels, Craig 196,750 196,750 22,843 12%

Safety 2073 GO, Replace Total Doors' Hienzsch, Magnus 68,644 68,644 2,392 3%

Safety 2102 GO-Fire pipe corrosion repair Michels, Craig 290,000 290,000 - 0%

Safety 2103 TEC Parking Lot Gate Michels, Craig 330,000 330,000 352 0%

Safety 2104 Automated Extnl Defibrillator Ruslen, Dan 120,000 120,000 93,803 78%

Vehicles 2016 SGR Bus Campaign Repairs Llamas, Salvador 1,037,500 1,037,500 133,000 13%

Vehicles 2034 Replace Non-Revenue Vehicles Hoffman, Stuart 450,000 450,000 230,163 51%

Vehicles 2040 Replace F areboxes Lewis-Williams, Sandra 11,828,685 12,042,249 11,847,558 100%

Vehicles 2050 30' VH Exhaust System Install Hoffman, Stuart 1,685,804 1,685,803 1,685,710 100%

Vehicles 2068 (27) 60-ft Hybrid Artie (BRT) Hoffman, Stuart 27,936,519 27,936,519 12,454 0%

Vehicles 2108 15 x 40' Expansion Buses Hoffman, Stuart 7,550,254 7,550,254 7,452,594 99%

Vehicles 2112 65 x 40' Urban Buses Hoffman, Stuart 37,238,456 37,238,456 36,972,335 99%

Vehicles 211 3 16 x 40' Dumbarton Buses Hoffman, Stuart 10,041,581 10,041,581 7,860,051 78%

Vehicles 2122 37 x 40' Urban Diesels Hoffman, Stuart 17,052, 190 17,052,190 - 0%

Vehicles 2131 29 x 60' Artic 'Diesels Hoffman, Stuart 24,969,000 24,969,000 - 0%

ZEBA 1701 Oakland Hydrogen Fueling Facil Callaway, Joe 13,236,271 13,236,271 13,191 ,876 100%

ZEBA 1703 Fuel Cell Bus O&M Callaway, Joe 1,993,486 1,993,486 1,287,288 65%

ZEBA 1704 Marketing and Outreach - ZEBA Llamas, Salvador 452,962 452,962 358,657 79%

ZEBA 2099 H2 Program Follow-up Andrichak, Christopher 247,226 247,226 38,418 16%

Subtotal 299,905,277 296,899,543 152,421 ,821 51%

Corridor Various BRT Project Development Wilkins, David 8,635,708 8,635,708 8,635,708 100% Complete

Corridor 2001 BRT Right OfWay/TPA Wilkins. David 3,478,569 3,478,569 3,478,569 100%

Corridor 2002 BRT Preliminary Engineering Wilkins, David 5,275,052 5,275,052 5,275,052 100% Complete

Corridor 2003 BRT Final Design, Plans & Spec Wilkins, David 17,628,071 17,628,071 17,573,043 100%

Corridor 2004 BRT Construction Wilkins, David 99,945,000 44,502,963 12,763,424 13%

Corridor 2005 BRT Vehicles & Equipment Wilkins, David 2,580,000 2,580,000 1,046 0%

Corridor 2006 BRT Proj MgVConstr Mgt Wilkins, David 40,443,771 35,378,390 18,062,846 45%

177,986,172 117,478,754 65,789,688 37%

Grand Total 477,891,449 414,378,296 218,211,510 46%

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