The URL can be used to link to this page

Home My Public Portal About04 April 28, 2003 Plans and ProgramsRIVERSIDE COUNTY TRANSPORTA TI( RECORDS PLANS AND PROGRAMS CO MEETING AGENDA TIME: 12:00 P.M. DATE: April 28, 2003 LOCATION: Board Chambers, 1St Floor County of Riverside Administrative Center 4080 Lemon Street, Riverside (O-3-\5 *** COMMITTEE MEMBERS *** Dick Kelly/Robert Spiegel, City of Palm Desert, Chairman Frank Hall/Harvey Sullivan, City of Norco, Vice Chairman Gregory Schook/John Chlebnik, City of Calimesa Jeff Miller/Jeff Bennett, City of Corona Greg Ruppert/Matt Weyuker, City of Desert Hot Springs Robin ReeserLowe/Lori Van Arsdale, City of Hemet Percy L. Byrd/Robert Bernheimer, City of Indian Wells Frank West/Bonnie Flickinger, City of Moreno Valley Jack van Haaster/Warnie Enochs, City of Murrieta Will Kleindienst/Chris Mills, City of Palm Springs Daryl Busch/Mark Yarbrough, City of Perris Bob Buster, County of Riverside, District 1 Roy Wilson, County of Riverside, District IV Marion Ashley, County of Riverside, District V *** STAFF *** Eric Haley, Executive Director Cathy Bechtel, Director of Transportation Planning & Policy Development *** AREAS OF RESPONSIBILITY *** State Transportation Improvement Program Regional Transportation Improvement Program New Corridors Intermodal Programs (Transit, Rail, Rideshare) Air Quality and Clean Fuels Regional Agencies, Regional Planning Intelligent Transportation System Planning and Programs Congestion Management Program The Committee welcomes comments_ if you wish to provide comments to the Committee, please complete and submit a Testimony Card to the Clerk of the Board. I(-3(. i5 RIVERSIDE COUNTY TRANSPORTA TION COMMISSION PLANS AND PROGRAMS COMMITTEE www.rctc.org AGENDA* *Actions may be taken on any item listed on the agenda 12:00 p.m. Monday, April 28, 2003 Board Chambers, 1st Floor County of Riverside Administrative Center 4080 Lemon Street, Riverside In compliance with the Americans with Disabilities Act and Government Code Section 54954.2, if you need special assistance to participate in a Commission meeting, please contact the clerk of the Commission at (909) 787-7141. Notification of at least 48 hours prior to meeting time will assist staff in assuring that reasonable arrangements can be made to provide accessibility at the meeting. 1. CALL TO ORDER 2. ROLL CALL 3. PUBLIC COMMENTS 4. APPROVAL OF MINUTES (March 24, 2003) 5. REPROGRAMMING OF STATE TRANSPORTATION IMPROVEMENT PROGRAM (STIP) FUNDING Pg. 1 Overview This item is for the Committee to: 1) Approve reprogramming $1 .875M in State Transportation Improvement Program (STIP) funds from the City of Blythe's Hobsonway project to Planning, Programming, and Monitoring activities in order to utilize funding capacity in fiscal year 2003/04; and 2) Forward to the Commission for final action. Plans and Programs Committee Agenda April 28, 2003 Page 2 6. FY 03 AMENDMENT TO CITY OF CORONA'S SHORT RANGE TRANSIT PLAN TO REALLOCATE FUNDS FOR THE PURCHASE OF BASE RADIO COMMUNICATION EQUIPMENT Pg. 3 Overview This item is for the Committee to: 1) Amend the FY 03 Short Range Transit Plan for the City of Corona's Transit Program; 2) Reallocate $12,000 in Local Transportation Funds from the bus replacement line item for the purchase of base radio communication equipment; and 3) Forward to the Commission for final action. 7. MEASURE "A" SPECIALIZED TRANSIT PROGRAM: ANZA VALLEY COMMUNITY SERVICES, INC. Pg. 4 Overview This item is for the Committee to: 1) Authorize Anza Valley Community Services, Inc. (Anza) to disburse approximately $4,000 of Measure "A" Specialized Transit Funds to four non- profit agencies serving the Anza area; 2) Reassign ownership of the 12 -passenger Ford van purchased in part with Measure "A" funds to the Riverside Transit Agency; and 3) Forward to the Commission for final action. 8. CARE -A -VAN TRANSIT, INC.'S REQUEST TO APPLY EXCESS MATCHING FUNDS FROM FY 00 AND FY 01 TO FY 02 Pg. 6 Overview This item is for the Committee to: 1) Apply $12,229 in excess matching funds from FY 00 and FY 01 to cover Care -A -Van Transit, Inc.'s match requirement for FY 02; and 2) Forward to the Commission for final action. Plans and Programs Committee Agenda April 28, 2003 Page 3 9. PROPOSED METROLINK BUDGET FOR FY 03/04 Overview This item is for the Committee to: Pg. 7 1) Adopt the preliminary FY2003/04 Metrolink Operating and Capital Budgets; 2) Allocate RCTC's funding commitment to the Southern California Regional Rail Authority in an amount not to exceed $3,948,500, comprised of: $3,056,300 of Local Transportation Funds for train operations and maintenance -of -way, and $892,200 of FTA Section 5307 for capital projects; and 3) Forward to the Commission for final action. 10. DEFERRAL OF THE VAN BUREN METROLINK STATION Overview This item is for the Committee to: Pg. 125 1) Defer the construction of the Van Buren Metrolink Station until after 2010, at which time the Commission can re -consider proceeding with the development of the Station; and 2) Forward to the Commission for final action. 11. COMMUTER RAIL PROGRAM UPDATE Overview This item is for the Committee to: Pg. 132 1) Receive and file Commuter Rail Program Update as an information item; and 2) Forward to the Commission for final action. 12. 2003 UPDATE TO LOCAL GUIDELINES FOR IMPLEMENTING THE CALIFORNIA ENVIRONMENTAL QUALITY ACT ("CEQA") AND APPROVAL OF RESOLUTION NO. 03-023, "A RESOLUTION OF THE RIVERSIDE COUNTY TRANSPORTATION COMMISSION AMENDING AND ADOPTING LOCAL GUIDELINES FOR IMPLEMENTING THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (PUB. RESOURCES CODE §§ 21000 ET SEQ.) Pg. 151 Plans and Programs Committee Agenda April 28, 2003 Page 4 Overview This item is for the Committee to: 1) Adopt the 2003 Update to Local Guidelines for Implementing the California Environmental Quality Act ("CEQA"); 2) Adopt Resolution No. 03-023; and 3) Forward to the Commission for final action. 13 . COMMISSIONERS / STAFF REPORT Overview This item provides the opportunity for the Commissioners and staff to report on attended and upcoming meetings/conferences and issues related to Commission activities. 14. ADJOURNMENT The next Plans and Programs Committee meeting is scheduled to be held at 12:00 p.m., Monday, May 19, 2003, Board Chambers, 1 St Floor, County Administrative Center, 4080 Lemon Street, Riverside. MINUTES RIVERSIDE COUNTY TRANSPORTA TION COMMISSION PLANS AND PROGRAMS COMMITTEE Monday, March 24, 2003 MINUTES 1. CALL TO ORDER The meeting of the Plans and Programs Committee was called to order by Chairman Dick Kelly at 12:03 p.m., in the Board Room at the County of Riverside Administrative Center, 4080 Lemon Street, First Floor, Riverside, California, 92501. 2. ROLL CALL Members/Alternates Present Members Absent Marion Ashley Daryl Busch Bob Buster Percy L. Byrd Frank Hall Dick Kelly William G. Kleindienst Greg Ruppert Frank West Roy Wilson Robin Lowe Jeff Miller Gregory V. Schook Jack van Haaster 3. PUBLIC COMMENTS There were no requests from the public to speak. 4. APPROVAL OF MINUTES — January 27, 2003 M/S/C (Hall/Ashley) to approve the January 27, 2003 minutes as submitted. Abstain: Kleindienst Plans and Programs Committee Minutes March 24, 2003 Page 2 5. FISCAL YEAR 2004 FEDERAL TRANSIT ADMINISTRATION'S SECTION 5310 PROGRAM Tanya Love, Program Manager, reviewed the FTA Section 5310 Program and the proposed Regional Priority List for Riverside County. The Commission is required to include the awarded projects in the Regional Transportation Improvement Plan (RTIP) and certify by resolution that the projects are consistent with the Local Area Regional Transportation Plan. Commissioner Frank Hall asked if the agencies that submitted project requests were notified of their opportunity to come before the Committee to discuss their scores. Tanya Love responded that they are notified as well as given the opportunity to appeal to the Local Review Committee. No agency has appealed at this time. M/S/C (Ruppert/Byrd) to: 1. Adopt the Fiscal Year 2004 Federal Transit Administration's Section 5310 Riverside County Project Rankings as recommended by the Local Review Committee; 2. Include the projects in the Regional Transportation Improvement Plan; 3. Certify by Resolution No. 03-022, "Resolution of the Riverside County Transportation Commission Certifying Project Consistency with the Regional Transportation Plan", certifying that the projects are consistent with the local area regional transportation plan; and, 4. Forward to the Commission for final action. 6. STATUS OF 2004 REGIONAL TRANSPORTATION PLAN UPDATE Shirley Medina, Program Manager, provided the status of the 2004 Regional Transportation Plan (RTP) Update by the Southern California Association of Governments (SCAG), noting that there is a concern over SCAG's ability to adopt a plan that can be in conformance with the adopted air plan and the region's ability to fund planned transportation projects. Commissioner Greg Ruppert asked if funding could be sought under the Department of Homeland Security for any of the projects, specifically projects that would improve military movement. Eric Haley, Executive Director, responded that attempts have been made to rationalize funding increases for those types of projects and have been unsuccessful. Plans and Programs Committee Minutes March 24, 2003 Page 3 Commissioner William Kleindienst requested a detailed presentation to the Commission as to the major significance of this issue including participation from the South Coast Air Quality Management District (SCAQMD) staff. Commissioner Marion Ashley concurred with Commissioners Ruppert and Kleindienst comments and expressed his belief that this issue requires the Commission's attention. Eric Haley indicated that a presentation would be provided to the Commission at its April meeting with the participation of SCAQMD and SCAG. Commissioner Percy Byrd expressed concern regarding a document he recently reviewed indicating that SCAQMD staff is recommending the relaxation of the low -emission vehicle requirements and standards. Commissioner Roy Wilson responded that SCAQMD is not looking to relax any such requirements. He noted that the California Air Resources Board (CARB) is looking at its zero -emission vehicle rules and reviewing staff recommendations to abort the electric vehicle proposal. SCAQMD and the Riverside County Board of Supervisors will be taking a position against relaxation of such rules. M/S/C (Wilson/Byrd) to: 1. Receive and file a report on the status of the 2004 Regional Transportation Plan Update; and, 2. Forward to the Commission for final action. 7. COMMUTER RAIL PROGRAM UPDATE Karen Leland, Staff Analyst, provided an update on the Commuter Rail Program, highlighting an increase in ridership on all lines and the current promotions and incentives. M/S/C (Hall/Ashley) to: 1. Receive and file the Commuter Rail Program Update as an information item; and, 2. Forward to the Commission for final action. Plans and Programs Committee Minutes March 24, 2003 Page 4 8. COMMISSIONERS / STAFF REPORT A. Commissioner Byrd thanked the members and staff for their assistance with the Miles Avenue Bridge Project. B. Chairman Kelly asked for the status of the Miles Avenue/Clinton Project and if staff tracked the status of these projects and alerted the necessary parties of delays. Shirley Medina responded that the County is the lead agency on the Miles Avenue/Clinton Project and is scheduled farther out in the STIP. She also noted that a Quarterly Milestone Report has been implemented requiring each agency to respond to projects on a quarterly basis to ensure timely submission of allocations and extension requests. Chairman Kelly requested that RCTC, in addition to local agency's staff provide a copy of the report directly to the Commissioners, highlighting potential issues for their jurisdiction. C, Eric Haley noted: • Metrolink ridership has increased approximately 30% over the past year. • The La Sierra Metrolink Station Photovoltaic Parking Lot Dedication will be held on April 11t' at 11:00 a.m., highlighting the attendance of Secretary Maria Contreras -Sweet and CTC Commissioner Joe Tavaglione. • The California Transportation Foundation Awards will be held on May 21St in Sacramento. The Commission will be honored for its Measure "A" Outreach Program and he will be honored as "Person of the Year". D. Chairman Kelly requested that staff arrange a trip to the La Sierra Metrolink Photovoltaic Parking Lot Project for Commissioners who are unable to attend the dedication. Staff stated that a trip will be scheduled to directly follow the April Committee meeting with assistance from City of Riverside Public Utilities Department. Plans and Programs Committee Minutes March 24, 2003 Page 5 9. ADJOURNMENT There being no further business for consideration by the Plans and Programs Committee, the meeting adjourned at 12:41 p.m. The next meeting is scheduled to be held at 12:00 p.m., Monday, April 28, 2003, in the Board Room at the County of Riverside Administrative Center, 4080 Lemon Street, First Floor, Riverside, California, 92501. Respectfully submitted, 0.Q �i0.mr.�r Jennifer Harmon Deputy Clerk of the Board AGENDA ITEM 5 RIVERSIDE COUNTY TRANSPORTA TION COMMISSION DATE: April 28, 2003 TO: Plans and Programs Committee Shirley Medina, Program Manager FROM: THROUGH: Cathy Bechtel, Director of Transportation Planning and Policy Development SUBJECT: Reprogramming of State Transportation Improvement Program (STIP) Funding STAFF RECOMMENDATION: This item is for the Committee to: 1) Approve reprogramming $1.875M in State Transportation Improvement Program (STIP) funds from the City of Blythe's Hobsonway project to Planning, Programming, and Monitoring activities in order to utilize funding capacity in fiscal year 2003/04; and 2) Forward to the Commission for final action. BACKGROUND INFORMATION: The City of Blythe submitted an allocation request for the Hobsonway arterial improvement project to Caltrans and the California Transportation Commission (CTC) on September 9, 2002. Although the project is programmed in fiscal year 2003/04 the CTC can allocate projects in advance if the project is ready for an allocation vote. However, at the time this project was to be placed on the CTC agenda the state budget crisis was proclaimed. At their December 2003 meeting, the CTC decided to place all allocation votes on hold until further information was provided regarding the impact to the STIP. In March 2003, Caltrans presented a cash flow projection covering an 18 -month period, January 2003 through June 2004, which identified $1.8 billion available for allocation. In addition, the CTC developed an allocation plan to determine which projects to allocate and also established categories of projects in priority order. The Hobsonway project was not included in the allocation plan because the CTC wanted to focus solely on projects that were programmed in fiscal year 2002/03. Once FY 2003/04 begins in July, '03/04 projects will be included in the allocation plan with '02/03 projects that did not receive allocations. Given the limited funds 1 available, significant delays in allocations are expected, especially for non -capacity projects. Given that Hobsonway is a non -capacity project and would be placed low on the allocation plan, the City of Blythe decided that they could no longer wait to construct the Hobsonway improvement project and coordinated with the Coachella Valley Association of Governments to fund the project with local funds. This action requires us to rescind the allocation request allowing the funds to lapse. The City of Blythe will have the opportunity to propose a substitute project in a future STIP or with future TEA -21 Reauthorization funding. STIP guidelines stipulate that lapsed funds (programmed projects that are not requested for allocation) are returned to the county share in the next STIP cycle. Rather than letting the funds lapse, there is an opportunity to reprogram the funds on a project that would likely receive an allocation. Staff is proposing that the $1.875M be programmed to Planning, Programming, and Monitoring (PPM) activities. Currently, $166,000 is programmed in FY 03/04. The PPM project category is the third highest priority category on the allocation plan and it is likely that these funds can be allocated sometime within the next year. However, there is no guarantee that the CTC would allocate the entire amount in FY 03/04. Staff proposes the use of the $1.875M as follows: Additional staff costs for project monitoring Orange County -Riverside County Major Investment Study CETAP (The RCTC approved a $778,985 increase to the CETAP budget on January 8, 2003. The County of Riverside agreed to advance the funding to allow work to proceed, with the understanding that RCTC would seek funding to provide reimbursement for these costs.) $ 96,015 $1,000,000 $ 778,985 $1,875,000 2 AGENDA ITEM 6 RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: April 28, 2003 TO: FROM: Plans and Programs Committee Tanya Love, Program Manager THROUGH: Cathy Bechtel, Director of Transportation Planning and Policy Development SUBJECT: FY 03 Amendment to City of Corona's Short Range Transit Plan to Reallocate Funds for the Purchase of Base Radio Communication Equipment STAFF RECOMMENDATION: This item is for the Committee to: 1) Amend the FY 03 Short Range Transit Plan for the City of Corona's Transit Program; 2) Reallocate $12,000 in Local Transportation Funds from the bus replacement line item for the purchase of base radio communication equipment; and 3) Forward to the Commission for final action. BACKGROUND INFORMATION: The City of Corona (Corona) is requesting an amendment to their FY 03 Short Range Transit Plan and reallocation of $12,000 in Local Transportation Funds (LTF). Corona has an immediate need to replace its base radio communication equipment. Their existing equipment has been repaired numerous times; during the last repair, Corona was told that the company could no longer guarantee the radio's on -going operation. The base system supports Corona's two-way radio communication system which supports 14 transit vehicles. Earlier in the year, Corona was approved for $102,000 in LTF local match funds to purchase four Dial - A -Ride replacement buses. Based on the quotes received for the four buses, there will be a minimum savings of $55,000. As a result, Corona is requesting that $12,000 of these funds be reallocated to cover the cost of the radio equipment. The balance of the LTF funds will be carried forward for use in FY 04. 3 AGENDA ITEM 7 RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: April 28, 2003 TO: Plans and Programs Committee FROM: Tanya Love, Program Manager THROUGH: Cathy Bechtel, Director of Transportation Planning and Policy Development SUBJECT: Measure "A" Specialized Transit Program: Anza Valley Community Services, Inc. STAFF RECOMMENDATION: This item is for the Committee to: 1) Authorize Anza Valley Community Services, Inc. (Anza) to disburse approximately $4,000 of Measure "A" Specialized Transit Funds to four non-profit agencies serving the Anza area; 2) Reassign ownership of the 12 -passenger Ford van purchased in part with Measure "A" funds to the Riverside Transit Agency; and 3) Forward to the Commission for final action. BACKGROUND INFORMATION: Earlier in the year, the Commission received notification that Anza would cease to provide specialized transit services effective October 31, 2002. To ensure that operating funds and vehicles purchased with Measure "A" funds were properly accounted for, staff from Ernst and Young conducted a close out audit. The results of the audit, together with communication from Anza staff, revealed that $6,542 of Measure "A" Specialized Transit funds were on hand as of October 31, 2002. It is projected that after all bills are paid a balance of approximately $4,000 will be available to either be returned to the Commission's Measure "A" Specialized Transit fund or disbursed to other non -profits. Anza has requested that the remaining funds be disbursed as follows: a. $2,000 to Agape, a non-profit provider in the Anza area that provides assistance to the needy; and b. $2,000 to be split evenly (approximately $667 each) among the Nazarene Church, the Baptist Church and Community Assistance, a non-profit organization that provides food to the 4 needy. If approved, funds provided to the Nazarene and Baptist church will go towards the cost of insuring vehicles that Anza donated to them. In addition, a decision needs to be made on the assignment of a 12 -passenger, 2001 Ford vehicle purchased in part with Measure "A" funds ($30,736) together with $17,314 of funds raised through Anza's fund-raising activities. Anza will relinquish title of this vehicle to RCTC or our designee so that the vehicle can be placed into specialized transit service. Staff recommends that title of the vehicle be assigned to the Riverside Transit Agency for use in its specialized transit program. 5 AGENDA ITEM 8 RIVERSIDE COUNTY TRANSPORTA TION COMMISSION DATE: April 28, 2003 TO: Plans and Programs Committee Tanya Love, Program Manager FROM: THROUGH: Cathy Bechtel, Director of Transportation Planning and Policy Development SUBJECT: Care -A -Van Transit, Inc.'s Request to Apply Excess Matching Funds From FY 00 and FY 01 to FY 02 STAFF RECOMMENDATION: This item is for the Committee to: 1) Apply $12,229 in excess matching funds from FY 00 and FY 01 to cover Care -A -Van Transit, Inc.'s match requirement for FY 02; and 2) Forward to the Commission for final action. BACKGROUND INFORMATION: Care -A -Van Transit, Inc. (Care -A -Van) has provided on -going transportation services to the elderly, disabled and/or truly needy population in the Hemet/San Jacinto area since 1994. Transportation is provided to medical appointments, social service agencies, education and literacy classes, job training, employment as well as life enhancing activities such as shopping, visiting family, etc. In FY 02, Care -A -Van received a Measure "A" Specialized Transit operating grant in the amount $139,134. Under the terms of the operating grant, Care -A -Van is required to provide a local match of $139,134 by June 30, 2002. However, due to cutbacks in local funding from Community Development Block Grants, it was determined through the audit process that Care -A -Van did not meet its match requirements. A total of $126,905 in local match funding was provided ($42,203 in cash and $84,702 of in -kind services). To cover the $12,229 short fall, Care -A - Van is requesting that excess matching funds from FY 00 and FY 01 be applied towards the FY 02 match requirement. 6 AGENDA ITEM 9 RIVERSIDE COUNTY TRANSPORTA TION COMMISSION DATE: April 28, 2003 TO: Plans and Programs Committee FROM: Stephanie Wiggins, Rail Department Manager THROUGH: Cathy Bechtel, Director of Transportation Planning and Policy Development SUBJECT: Proposed Metrolink Budget for FY03/04 STAFF RECOMMENDATION: This item is for the Committee to: 1) Adopt the preliminary FY2003/04 Metrolink Operating and Capital Budgets; 2) Allocate RCTC's funding commitment to the Southern California Regional Rail Authority in an amount not to exceed $3,948,500, comprised of: $3,056,300 of Local Transportation Funds for train operations and maintenance -of -way, and $892,200 of FTA Section 5307 for capital projects; and 3) Forward to the Commission for final action. BACKGROUND INFORMATION: By virtue of the Joint Powers Agreement, the five member agencies which comprise the Southern California Regional Rail Authority (Metrolink) must formally commit to fund their proportionate shares of commuter rail operating and capital costs. Each member agency must approve the budget before adoption of a final budget by the Metrolink Board, no later than June 30, 2003. Service and funding levels •are limited by the policy and budget constraints of the member agencies and are negotiated each year. Riverside County Service Levels Proposed for FY2003/04 Three Metrolink lines will traverse Riverside County, the Riverside Line, the Inland Empire - Orange County (IEOC) Line, and the 91 Line. The FY03/04 draft Metrolink Budget proposes the following: • Riverside Line: No changes in regular weekday service or weekend service via extensions to the San Bernardino Line; • IE0C Line: One round trip off-peak service between Riverside and Irvine will be added in the Fall, increasing the total number of weekday trains from 12 to 14; and • 91 Line: No changes in regular weekday service. 7 Avg Ridership for Riverside & 91 Lines 5,000 4,000 3,000 2,000 1,000 0 ei O 100% 90% 80% • `l,` PJA Sep co'"O eJ � ao Leo mac Riverside Line On -Time Performance Riverside Line — ---System The on -time performance of the Riverside Line has consistently improved since March 2002, however, ridership has decreased by 5% due to the introduction of the new 91 Line service in May 2002. The new Line and Amtrak's "Rail 2 Rail" Program have resulted in significant changes in travel patterns along the corridor. Since the opening of the 91 Line, ridership has more than doubled to over 1,624 average daily boardings. Half of all 91 Line trips originate in the Inland Empire with most of these trips bound for Los Angeles Union Station (LAUS) or beyond. But there is significant ridership turn -over at the Fullerton Station as former Orange County Line riders board 91 Line trains for LAUS. Metrolink recently conducted an intercept survey at the Fullerton Station which validated earlier estimates of almost one third of riders on the 91 Line being new to Metrolink. This corresponds to 475 trips taken on the 91 Line by riders who only started riding since the 91 Line opened. Of the remaining riders who switched from another Metrolink Line, 64% using the Orange County Line, and 25% are former Riverside Line riders. significant number of riders for whom the 91 Line eliminated the need for transfers: IEOC to Orange County Line (4%), San Bernardino to Orange County Line (2%) and Riverside to Orange County (1%). c ✓ r ra •o.., ,. • ✓' Sources of 91 Line Ridership New Riders 32% Orange County Line 43% Riverside Line 17% IEOC Line 4% Sbdno to Orange County Line 3% Riverside to Orange County Line 1% were There previously are also a 8 RCTC's FY03/04 Operating Subsidy to Increase 1 RCTC's proposed funding obligation to SCRRA includes $3,056,300 subsidy for operations and maintenance -of -way which represents a $26,500 increase over the FY02/03 budget. This is due primarily to the additional off-peak roundtrip proposed for the IEOC Line. RCTC's new capital and capital renovation obligation for FY03/04 is projected at $892,200, an increase of $8,636. Projects include the rehabilitation and renovation of the River Corridor which is located on the East Bank of the Los Angeles River. System -wide In FY03/04 the SCRRA will celebrate its 11th year providing Metrolink commuter rail service in Southern California. From three lines in October 1992, the agency will operate service over seven lines, with 143 weekday and 32 weekend trains as of its 11th anniversary in October. Average weekday ridership is projected to total 34,959, an increase of 2% over the current year Budget. Total ridership, including all weekend services, is expected to increase 2% from the current year Budget. The resulting fare box revenue is projected at $43.3 million or 3% over the current year Budget. Fare revenues represent 46% of total operating revenues. Member agency contributions of $48.7 million for operations represent approximately 47% of total operating revenues (resulting in a revenue recovery in the budget of 53%). The FY03/04 combined Metrolink Budget is $243.8 million. The operating budget is $103 million comprised of $83.6 million for train operations and maintenance -of - way at $19.4 million. The capital budget is $140.8 million made up of rehabilitation and renovation at $40 million and a new capital projects budget of $100.8 million. The major driving factors in projecting operating expenses are service levels, and the associated equipment maintenance and support requirements. Several factors contribute to moderate the increase in member agency subsidy requirements for FY03/04, including: • Contracted train operating expenses projected to increase by $1.4 million, 8% • Maintenance of equipment expenses decrease by $1 Million, 5% due to the implementation of a new contract; • Combined increases in the costs of Operating and Property Insurance premiums by $1.7 million, 56%; • Fuel expenses are projected to increase by 9%, $0.5 million; and • Average weekday ridership, fare box revenues, and maintenance -of -way revenues are projected to increase. 9 The proposed Metrolink Budget also provides for a systemwide Strategic Plan. No increases or adjustments to fare structure are assumed for FY03/04. However, the FY03/04 Metrolink Budget further provides for reevaluation of the entire Fare policy and the results, upon approval, would be incorporated into the FY04/05 budget preparation. RCTC Share of Proposed Metrolink Budget RCTC's share of the $103 million operating budget is $6,587,000 (see Metrolink Budget page 42). The resulting net subsidy requirement (after fare box and other operating revenues) is $3,056,300 to be paid by Western County Commuter Rail Local Transportation Funds. RCTC's capital subsidy requirement of $892,200 is to be paid by FTA Section 5307 commuter rail funds. The combined total FY03 RCTC subsidy request is $3,948,500. Attachment: Metrolink Preliminary Budget Fiscal Year 2003-04 10 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY 1,-)pECEUVE 11 APR 0_112003 TRANSPORTATION COMMISSION PRELIMINARY BUDGET FISCAL YEAR 2003-04 April 11, 2003 11 111 1111 METROLINK Los Angeles County Metropolitan Transportation Authority Orange. County Transportation Authority Riverside County Transportation Commission San Bernardino Associated Governments Ventura County Transportation Commission 11 SCRRA FY 2003-04 Budget EXECUTIVE. SUMMARY The Chief Executive Officer submits to the Southern California Regional Rail Authority (SCRRA) Board of Directors by May 1St of each year a Preliminary Budget for the following fiscal year. The submitted Budget includes separate components for administrative, operations and capital costs. Decisions dealing with operating and capital allocations as well as approval of each member agency's share of the Authority's annual budget must be approved by each member agency. The Board must adopt a final Budget no later than June 30 of each year. The Fiscal Year (FY) 2003-04 SCRRA Budget permits the agency to continue to meet the challenges of increased ridership, demand for more train services, as well as the need for capital improvements to accommodate rising levels of freight and passenger traffic on member agency -owned routes. In FY 2003-04 the SCRRA will celebrate its 11th year providing Metrolink commuter rail service in Southern California. From three lines in October 1992, the agency will propose to operate service over seven lines, with 143 weekday and 32 weekend trains as of its 11th anniversary in October 2003. The FY 2003-04 Budget demonstrates Metrolink's ongoing efficiency, effectiveness, and commitment to the transportation needs of Southern Californians. In FY 2003-04, the SCRRA, like governmental agencies at all levels, faces challenges in the current economic environment. Great care and review was given to the proposed budget to ensure the promotion and protection of our current service, and to add, wherever feasible, service expansions and enhancements that maximize the efficient use of equipment. An additional primary function of the agency is to maintain the integrity of the Member Agency owned rights -of -way for the use of commuter rail and freight operations. The FY 2003-04 Budget seeks to ensure the continued delivery of exceptional quality passenger rail services in Southern California. The $244 million budget consists of an Operating Budget of $103 million, an increase of 4.6%from the FY 2003-04 budget. It includes Train Operations at $84 million and a Maintenance -of -Way (MOW) budget at $19 million. The Capital Budget of $141 million is made up of a Rehabilitation/Renovation Budget of $40 million and a New Capital Budget of $100 million of approved projects. The Operating Budget details both operating revenue (such as fare and maintenance -of - way revenues) as well as operating expenses. Average weekday and total ridership, including weekend services is expected to increase 2% from the FY 2002-03 Budget. Farebox revenue is expected to reach $43.3 million, a 3% increase over the FY 2002-03 Budget. Dispatching and other operating revenues are expected to increase 1% from the FY 2002-03 Budget to $2.8 million. Maintenance -of -way revenues are estimated to 4/7/2003, 9:57 AM i 12 SCRRA FY 2003-04 Budget increase 3% above the FY 2002-03 Budget to $8.5 million. This budget demonstrates anew the ongoing trend of growth and cost -efficiency of Metrolink operations. Highlights of the FY 2003-04 Budget include: • Operating expenses per train mile are expected to be $48.12 which is a 2% increase from the Fiscal Year 2002-03 Budget. • Operating expense per passenger mile holds steady from the previous fiscal year at $0.30 • Subsidy per passenger mile rises $0.01 to $0.14. • Operating subsidy per rider rises slightly to $5.25. • Revenue recovery is projected to equal 53%, an exceptional amount relative to other transit properties. • Farebox recovery is expected to equal 46%. • Total Revenue Train Miles will be 3% higher in FY 2003-04 then levels adopted in the FY 2002-03 Budget. The principal determinant of agency operating expenses are levels of service, the associated equipment maintenance and support requirements, underlying labor inflation in the agency's largest service contracts, and the levels of effort of the agency's maintenance of way program. The FY 2002-03 SCRRA Budget anticipates an operating schedule of 143 weekday trains on seven lines and 32 weekend trains on two lines. Service improvements and expansions are assumed to be added on three of the agency's operating line segments in the Fiscal Year. New round trip off-peak service on the Inland Empire Orange County Line is being introduced through the reduction of one lightly utilized peak period Oceanside to Irvine trip. This change is being introduced by the authority to maximize the use of existing equipment and make peak period travel on the line more attractive to commuters. A service extension on the Ventura County Line from Moorpark to Montalvo is also assumed in the budget. These services are expected to begin in the Fall of 2003. Additional new service is being introduced on the San Bernardino Line to reduce overcrowding during the peak period. Consisting of two new round trips, one AM peak and one PM peak, between Los Angeles Union Station and Covina, service is expected to begin in early calendar 2004 upon the completion of currently ongoing capacity improvements. In May, 2002, the agency introduced commuter service on its seventh line, the 91 Line, from Riverside in the Inland Empire, through Fullerton in Orange County to Los Angeles Union Station. The response to this service has exceed all initial budget expectations. Through the first six months of FY 2002-03, ridership has exceeded initial expectations in excess of 80%. 4/7/2003, 9:57 AM ii 13 SCRRA FY 2003-04 Budget The FY 2003-04 Budget further provides for the continuation of the SCRRA, AMTRAK and CALTRANS' award winning "Rail 2 Rail" program. The agencies agreed to work together to allow passengers with valid Metrolink monthly passes or Amtrak fare media, where complementary service exists, to choose the service provider that best suits their travel needs. Implemented in September 2002, this service has increased Metrolink revenues, increased Amtrak's Pacific Surfliner corridor ridership, and served to relieve overcrowding on a number of peak period Orange County Line trains. Member agency subsidies for the Operating Budget are projected to total $48.4 million. This represents a 6% increase over the FY 2002-03 Budget. The FY 2003-04 budget includes a number cost adjustments to ensure the ongoing provision of current and expanded services. Factors contributing to the increase in member agency subsidy requirements, include: • An increase in contracted train operating expenses of 8% • An increase in Fuel expenses of 9% • Costs paid to freight railroads to operate on non-member rights -of -way are estimated to increase 11%, partly as a result of new services. • The costs of Operating Liability and Property Insurance premiums are projected to increase 56% • Farebox revenues are projected to increase modestly by 3% • Increased costs of medical insurance premiums and associated fringe benefit costs. • Maintenance -of -way expenditures are projected to decrease by 3% • The SCRRA staff merit increases included in the budget have been reduced by 1% (3% from 4%) • All staff related discretionary costs such as travel and training have been reduced to only essential levels. • The implementation of a new operating contract for the maintenance of agency equipment is expected to realize a saving of 5%. • All non -direct operational costs are expected to increase collectively by 1%. The Capital Budget (Rehabilitation/Renovation and New Capital) for FY 2003-04 continues several important New Capital projects to more efficiently operate passenger (Metrolink and Amtrak) and freight services on member agency owned routes. New Capital projects are only those with approved funding. These projects include: • The anticipated completion of construction of additional double track and sidings on the San Bernardino Line • The initiation of the procurement of new rolling stock • The start of construction of double tracking a portion of the Orange County Line. • The initial design of a new Eastem Area Maintenance Facility. • The completion of a number of new sidings on the Antelope Valley Line • Systemwide tie and rail replacement. 4/7/2003, 9:57 AM iii 14 SCRRA FY 2003-04 Budget • The upgrade of platform lighting at Los Angeles Union Station. • The installation of replacement concrete ties in the I-10 corridor. • The installation of next generation Ticket Vending Machines (TVMs) allowing significantly increased functionality. Additional projects for which SCRRA and its member agencies are still seeking funding are not included in the budget at this time. As funding is secured, these projects will be added to the budget after review and approval by the Board. The FY 2003-04 Budget proposes 4 new positions, Facilities Maintenance Technicians in the agency's Equipment Department, all of which are the result of the transfer from contractor staff to SCRRA staff. There is a reduction in operating costs by this previously approved Board action Agency and departmental goals continue to focus on building an organizational infrastructure to support the increased long-term operations and administrative functions. Agency goals also address the following needs: • Continued growth in revenue and the development of a revised Fare Policy • Continued improvements in service quality and safety • A continued strategic planning effort to set a course to meet long-term ridership and service projections • Continuation of the annual Board retreat to address the long term policy needs of the agency • Continued pursuit of federal and state funding • Stronger alliances with station city stakeholders • Viability of connecting services/ complementary connecting services The proposed FY 2003-04 Budget is based upon conservative financial assumptions which ensure the SCRRA's fiscal ability to deliver upon the service and capital improvements promised to the public. In its 11th year of providing exceptional services to Southern California, SCRRA remains committed to delivering the highest quality commuter rail service. 4/7/2003, 9:57 AM iv 15 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY FY 2003-04 BUDGET 1.0 INTRODUCTION 1.1 SCRRA Services The SCRRA is a joint powers authority created to plan, design, build and operate the Metrolink commuter rail service in the Southern California region. Metrolink provides service on 7 routes to 53 stations over 416 route miles. The system map is provided in Exhibit 1.1. Metrolink operates 143 trains each weekday and average weekday ridership is project to total almost 35,000 one-way trips in Fiscal Year 2003-04. Saturday service is provided on the San Bernardino and Antelope Valley Lines, and Sunday service is provided on the San Bemardino Line. In Fiscal Year 2003-04, total rolling stock available will be 38 locomotives and 143 commuter rail cars including 38 Cab Cars and 105 passenger cars. In addition to operating commuter rail service, SCRRA dispatches and maintains in excess of 60% of the territory over which it operates. On a daily basis, SCRRA currently dispatches 137 Metrolink trains, up to 34 Amtrak intercity trains between Moorpark and San Diego, 22 NCTC operated Coaster trains, and between 80 and 90 freight trains. SCRRA is also responsible for the maintenance of right-of-way owned by SCRRA member agencies that extends over 330.6 track -miles. SCRRA's Capital Program includes ongoing rehabilitation/renovation of this right-of-way, facilities, equipment, and rolling stock, as well as expansion of the system through the acquisition and construction of new, system expanding assets. 4/7/2003, 9:57 AM 16 ANTEL OPE V ALLEY LINE w VENTURA ��, , �`�► • ,4�r COUNTY c ,�� a'`0; 014. 4a +.64 ,0i4.. V ENTURAOUNTY A i LINE Ir �METROLINK 0. Future Station Q Con neeting,Sttion Effective October 28, 2002 2r ws e` o \�•. ; 5 ,1'' r oS .4-,,45,,e� gas` o c a LOS ANGELES COUNTY SAN BERNARDINO COUNTY S AN BE RNAR DI NO LINE 'Montebello./ • o ° Lye Cornmerce 4o C (` �S 91 LI NE 6." 4' • t'.`‘) c CO '0 x"1.0 3 `37 , . p .•d .44 Van Buren ," RIVERSIDE LINE INLAND EMPIRE ;s ORAN GE C OUNTY LINE ORANGE lb� j� COUNTY 10,4, cy rs 05' N15- 1. ,try ' a RIVERSIDE COUNTY OR AN GE CO UNTY LINE SAN DIEGO COUNTY SCRRA FY 2003-04 Budget 1.2 Organization a Summary The SCRRA Board, as of May 1, 2003, consists of the following eleven voting members: San Bemardino Associated Governments (SANBAG) Orange County Transportation Authority (OCTA) Los Angeles County Metropolitan Transportation Authority (LACMTA) Riverside County Transportation Commission (RCTC) Ventura County Transportation Commission CDC 2 2 4 2 1 Members Bill Alexander (Chair) Mayor, City of Rancho Cucamonga Paul Eaton Mayor, City of Montclair Art Brown (Vice Chair) Council Member , City of Buena Park Thomas W. Wilson S , -rvisor, County of Orange Hal Bernson Council Member, City of Los Angeles Michael Antonovich Supervisor, County of Los Angeles Don Knabe Supervisor, County of Los Angeles Larry Zarian Ron Roberts Mayor, City of Temecula Frank West Council Member, City of Moreno Valley Bill Davis Mayor, City of Simi Valley * Alternates represent either member Ex -officio members of the SCRRA Agency Southern California Association of Governments (SCAG) San Diego Association of Governments The State of California Department of Transportation (Caltrans). Members. Richard Dixon Mayor, City of Lake Forest Julianne Nygaard Council Member, City of Carlsbad Maria Contreras -Sweet, Secretary, Business, Transportation and Housing Agency Alternates Judith Valles* Mayor, City of San Bernardino Kelly Chastain* Council Member, City of Colton Charles V. Smith* Supervisor, County of Orange Francine Oschin Council Member Hal Bernson's office Robert T. Bartlett Frank Roberts Mayor, City of Lancaster Beatrice Proo Mayor Pro Tem, City of Pico Rivera John Chlebnik* Mayor, City of Calimesa Ameal Moore* Commissioner, City of Riverside Brian Humphrey VCTC Commission Member Alternates Vacant Vacant Doug Failing Director — District 7, Caltrans Exhibit 1.2 provides the organizational structure of the SCRRA. The seven departments of SCRRA are: 4/7/2003, 9:57 AM 3 18 SCRRA FY 2003-04 Budget • Executive: David Solow, Chief Executive Officer • Support Services and Technology: Steve Wylie, Assistant Executive Officer • Operations: John Kerins, Director • Engineering & Construction: Michael McGinley, Director • Equipment: William Lydon Jr., Director • Communications and Development: Stephen Lantz, Director • Finance: Mark Dubeau, Director The adopted FY 2002-03 Budget of the SCRRA included 207 authorized positions. During the year, 2 additional positions were incorporated into the organization to bring the total to 209. In FY 2003-04, 213 positions are proposed, an increase of 4. All four of the positions are the result of the SCRRA assuming, as staff, facilities maintenance services previously provided under an outside contractor. A complete roster of agency positions is listed in Table 5.1. 1.3 Evolution of SCRRA In June 1990, the California Legislature enacted Senate Bill 1402, Chapter 4 of Division 12 of the Public Utilities Code. This bill required the transportation commissions of the counties of Los Angeles, Orange, Riverside and San Bernardino to jointly develop a plan for regional transit services within the multi -county region. In August 1991, the Southern California Regional Rail Authority (SCRRA), a regional Joint Powers Agency (JPA), was formed. Voting members with their respective number of votes are: Los Angeles County Metropolitan Transportation Authority (LACMTA), four votes; Orange County Transportation Authority (OCTA), two votes; Riverside County Transportation Commission (RCTC), two votes; San Bernardino Associated Governments (SANBAG), two votes; and Ventura County Transportation Commission (VCTC), one vote. 1 Ex -officio members of the SCRRA included the Southern California Association of Governments (SCAG), the San Diego Association of Governments and the State of California Department of Transportation (Caltrans). The purpose of the newly formed SCRRA was to plan, design, construct, and administer the operation of regional passenger rail lines serving the counties of Los Angeles, Orange, Riverside, San Bernardino, and Ventura. The SCRRA named the regional commuter rail system "Metrolink." The first three lines - San Bernardino, Santa CIarita (now Antelope Valley), and Ventura County- began operation in October 1992. The Riverside Line was added in June 1993, and the Orange County Line (which extends 19 miles into northern San Diego County) was added in April 1994. The sixth line, Inland Empire -Orange County, the nation's first suburb to suburb commuter rail line, was added in October 1995. In May of 2002, the 91 Line was added to provide an alternative to Inland Empire and Westem Orange County commuters traveling through Fullerton. I These five county transportation commissions are defined as SCRRA's Member Agencies. 4/7/2003, 9:57 AM 4 19 Southern California Regional Rail Authority SCRRA Internal Audit Contractor Employment Compensation & Benefits. Employee Development & Training Affirmative Actioh Human Resource Information Systems SCRRA Board of Directors Chief Executive Officer Manager, Human R esources SCRRA Couns el. Assistant Executive Officer - Support Services & Technology • Railroad Services • Contracts & Procurement • Claims Administration • Administrative Services • R ecords M anagement ■ Special Projects • Information Systems Director, Engineering & Construction Director, Operations • Track Contract Mgmt ■ ■ S & C Contract Mgmt • • Right of Way Mgmt • • Public Projects • Construction • Station Facility Oversight ■ ■ Design • • Operating Rules & Training • Operations & Contract Mgmt Operations Planning Passe nger Services Safety/Safety Education & Security Transportation Coordinators Line Supervisors/Ambassadors Dispatching Operations' Director, Equipment Director, Financ e Equipment Contract Mgmt Faclities Maintenance Fleet Maintenance Equipment Purchases Equipment Engineering Accounting Grant Accounting Revenue Accounting Payroll Tr easury Auditing Budgets & Program Control Fare Coll ection System Administration • • • • • 1 • • • Director, Communications & D ev elopment Government Affairs Agency Relations Legislation Grant Development & Programming Strategic Planning Market Analysts & Research External Communications Publications Media Relations Community Relations Public Information Media Relations Commuter Marketing Off Peak/Recreation Revenue Marketing Seamless Travel SCRRA FY 2003-04 Budget In its eleventh year of operations, the SCRRA continues building the Metrolink commuter rail system in order to ensure quality, efficient services are provided to commuters of Southern California. In July 2003, Metrolink expects to carry its sixty -millionth passenger, holding its place as one of the fastest growing commuter rail systems in the nation. 1.4 Mission Statement Metrolink is a premier regional rail system, including commuter and other passenger services, linking communities to employment and activity centers. Metrolink provides reliable transportation and mobility for the region, leading toward more livable communities. Metrolink is committed to and characterized by: • Technically superior and safe operations • Customer focus and accessibility • Dependable, high -quality service • Cost-effective and high -value service • Strategically located network of lines and stations • Integration with other transit modes • Environmental sensitivity • Community involvement and partnerships with both the public and private sectors 4/7/2003, 9:57 AM 6 21 SCRRA FY 2003-04 Budget SECTION 2 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY BUDGET SUMMARY 4/7/2003, 9:57 AM 7 22 SCRRA FY 2003-04 Budget 2.0 BUDGET SUMMARY 2.1 Budget Policy Budget Authorization Under the Joint Powers Agreement that founded the SCRRA, the Chief Executive Officer is to submit to the SCRRA Board of Directors by May 1St of each year a Preliminary Budget for the following fiscal year. The submitted Budget includes separate components for administrative, operations, and capital costs. Decisions dealing with operating and capital allocations, as well as approval of each member agency's share of the Authority's annual Budget must be approved by each member agency. The Board must adopt a final Budget no later than June 30 of each year. If a Budget is not approved by June 30th, the Board will approve a continuing Operating Budget resolution on a monthly basis equal to one -twelfth of preceding year's Budget. The Capital Budget approves individual projects that may proceed within the approved funding level. The Budget contains a financial plan that includes: • Organizational chart. • Goals and objectives for the new fiscal year. • The assumptions underlying revenue and expense projections. • Planned service for the following fiscal year. • Separately presented Operating and Capital budgets • Revenue sources by line item • Expenses by sununary line item • Department budgets • Authorized positions. The Operating Budget details both operating revenues (such as fare revenue, maintenance -of -way (MOW) revenue, member agency contributions, etc.) and operating expenses (such as Train Operations, Equipment Maintenance, Fuel, Security, Transfers to Other Operators, Maintenance - of -Way, Salaries and Fringe Benefits, Insurance, etc.) The Capital Budget includes all new projects proposed for the coming fiscal year as well as previously approved projects for which work has yet to be completed and is expected to continue into the Fiscal Year under consideration. The Board approves individual Rehabilitation and Renovation and New Capital projects, including total project cost and scope. Approved project funds are reserved for the duration of the project unless amended by the Board. In approving the proposed budget and any Board initiated amendments, the Board authorizes SCRRA to expend funds under the direction of the Chief Executive Officer consistent with: 4/7/2003, 9:57 AM 8 23 SCRRA FY 2003-04 Budget • Total amount appropriated for Train Operations and Maintenance -of -Way. • Total amount appropriated for Capital by each Rehabilitation/Renovation and New Capital project. • Individual member agency funding commitments. • Total number of authorized positions. Further, by approving the Budget, the Board authorizes the Chief Executive Officer to take necessary action to adjust the salary structure and associated ranges based on market trends. Budgetary Control General Budgetary control refers to SCRRA's procedures for monitoring actual expenses against planned expenditures as adopted in the annual Budget. By adopting an annual Budget, the Board of Directors delegates to the Chief Executive Officer the authority to manage the annual Budget within the following parameters: Transfers A Budget Transfer represents changes in projected expenses between line items within or across departments in the Budget. The Budget Office shall review the impact of any requested Budget Transfer and make recommendations to the Chief Executive Officer and/or Board, as required. Amendments Certain Budget Transfers may require Board approval and result in Budget Amendments. Budget Amendments will be submitted to the Board as required and include: • Any Budget Transfer that negatively impacts member agency funding commitments. • Any Budget Transfer that negatively impacts the total Operating Budget or individual Capital projects. • Any Budget Transfer that increases the total authorized level of personnel. The Board, by approving any Budget Amendment, amends the Budget for the fiscal year. Any budget amendment that requires an increase in a member agency's funding commitments additionally requires the approval of that member agency. Budgetary Reporting The Approved, or subsequently amended, Budget is the baseline for all comparisons to actual revenue and expenditures during a fiscal year. On a quarterly basis, budget status reports are presented to the Board of Directors. Additionally, the preparation of the following year's budget request provides staff with a mid -year opportunity for a detailed evaluation of progress compared to the budget plan of the current year. Internal performance reporting, and the preparation of the Comprehensive Annual Financial Report (CAFR) also provide tools for managing and reporting agency activities to the budget plan. 4/7/2003, 9:57 AM 9 24 SCRRA FY 2003-04 Budget 2.2 Accounting Methodology The Operating Budget has been developed based on a projection of earned revenue and incurred expenses for that fiscal year. The Capital Budget is developed based on available revenues for New Capital and Rehabilitation/Renovation projects during the coming fiscal year. 2.3 Budget Components The Operating Budget is comprised of the following two major components: • Operations — This portion of the Operating Budget includes expenses required to operate the Metrolink system including train operations, maintenance of equipment, fuel, security, utilities, transfer payments to other transit operators, revenue collection, payments to freight railroads for dispatching, station maintenance, passenger services, general and administrative expenses, professional services, and insurance. • Maintenance -of -Way — This portion of the Operating Budget includes ordinary maintenance of the rights -of -way owned by SCRRA member agencies. It involves routine inspection and repair of track, signals, and structures. The Capital Budget is comprised of the following two major components: • Rehabilitation/Renovation projects — These are projects that extend the life of existing capital assets such as replacement of worn ties and rail, replacement of outdated signal system components, rehabilitation of tunnels and bridges, and the programmed replacement and rehabilitation of the following rolling stock components: Car Door Operators; Wheel Trucks; Heating/Ventilation/Air Conditioning (HVAC); Traction Motors; and Head End Power Engine. The budget includes both ongoing and new projects for FY 2003-04. • New Capital projects — These are capital projects that expand the system such as sidings, double track, installation of new signal system components, and new rolling stock. The budget includes new and ongoing projects. Projects where final funding agreements have not been received are not included in the budget. At such time that funds to complete a project scope have been identified, and against which the SCRRA has the right to obligate expenditures, projects are amended into the fiscal year budget. 2.4 Significant Changes In Budgeting Approach Beginning in Fiscal Year 2002-03, the SCRRA standardized the practice of budgeting across the four principal operating contract agreements. Train Operations and Maintenance of Equipment in Operations, and Track and Structures Maintenance and Signal and Communications Maintenance in the Maintenance of Way (MOW) budget. Anticipated service levels and requirements are submitted to each contractor as part the budget's development. Contractors are then required, by terms the contract, to provide their proposed staffing and material requirements 4/7/2003, 9:57 AM 10 25 SCRRA FY 2003-04 Budget and associated budget amounts. Fiscal Year 2003-04 is the second year in which the MOW contractors are to provide detailed information by each of the territories for which the SCRRA and its members are responsible. While this approach has moderated the growth in total costs, the resulting distributions to individual lines varies from prior year averages as both staff and vendors become more proficient in this joint development process. (Please see Section 3.8 — Maintenance of Way Budget for further details) Historically, SCRRA has expensed all material purchases upon receipt. As of June 30, 2001, material receipts are recorded in inventory and expensed as issued to projects. For the purpose of budgeting, the materials expensed when moving from inventory to a project are included in the budget plan. Material costs in the inventory account are not budgeted, but are presented on the financial statements as an asset. During the Fiscal Year 2002-03, the SCRRA began the implementation of an upgrade to the agency's rolling stock materials management system. In addition to the expansion of the current system to state of the art technology, the Authority expects to extend the system to include the agency's Track and Structures and Signal and Communications assets. In addition to providing an inventory tracking and control function, the system is expected to greatly enhance the Authority's Fixed Asset Reporting and Management capabilities as required under the Government Accounting Standard Board pronouncement 34 (GASB34). 2.5 Budget Assumptions Operating Budget The primary operating budget objective of the SCRRA is to provide the financial road map that leads to the achievement of the agency's priorities and objectives consistent with its provision of high quality commuter rail service under the Metrolink banner. Within that objective, and to the degree possible, the agency attempts to expand those services in areas that allow for the greatest possible and efficient delivery of passenger friendly transit services. The second principal operating budget objective is to maintain the integrity of the Member Agency owed rights -of -way (ROW) for commuter rail and freight operations. The agency provides primary responsibility for the maintenance of almost 331 track miles in the five county area. The FY 2003-04 budget assumes new services will be provided on the San Bernardino, Inland Empire Orange County, and the Ventura County Lines. Two new round trips, LAUS to Covina, are proposed on the San Bernardino Line to alleviate crowding on peak period trains. A new off peak round trip on the IEOC line is proposed utilizing equipment available out of Oceanside. One Oceanside to Irvine peak period train segment is being replaced by the service referenced above. This service change will leave a peak period Irvine to San Bernardino train in place. Finally, two extensions to Montalvo, one each in AM and PM peak periods, from Moorpark are anticipated on the Ventura County Line. For FY 2003-04, total systemwide service levels assume 143 weekday trains operating on seven lines, and 32 weekend trains operating on two lines. Total revenue Train Miles are expected to 4/7/2003, 9:57 AM 11 26 SCRRA FY 2003-04 Budget equal 2.146 million miles, an increase of 3% over FY 2002-03. Also included in the FY 2003-04 Budget is the continuation of the highly successful "Rail to Rail" program begun in September 2002. This award winning program in which the SCRRA, Amtrak and CALTRANS have agreed to work together to allow passengers, on those lines where complementary service exists, holding valid Metrolink monthly passes or Amtrak tickets, to choose the service provider most convenient to their travel needs. Actual passenger counts for the fiscal year surpassed the budget's annual projection within the first 7 months of operations. This service has resulted in increased Metrolink Fare Revenues, increased corridor ridership for Amtrak Pacific Surfliner services, and relieved overcrowding on several peak period Orange County Line trains. SCRRA's philosophy for maintenance -of -equipment (MOE) and maintenance -of -way (MOW) is to perform ordinary maintenance sufficient to prevent any loss of service quality and to budget for Rehabilitation/Renovation programs at sufficient intervals to prevent the needed repairs or replacements from overwhelming the Operating Budget. Capital Budget The SCRRA is responsible for the safety and performance of the railroad system and right-of- way and all that travel upon it. Projects are selected based on the principle of minimizing and managing the risk of failure among system components. New Capital projects included in the budget depend upon the availability of local, state and federal funding. Rehabilitation/Renovation projects included in the budget depend primarily upon the availability of funds from the five member agencies. Selected projects have been prioritized to meet projected funding available and chosen from a larger field SCRRA staff believe can be safely and responsibly deferred to future years. Revenues Operating revenues include farebox, dispatching and maintenance -of -way revenues, interest, other minor miscellaneous revenues, expected to grow in FY 2003-04 to $54.6 million, an increase of $1.6 million, or 3% over FY 2002-03. No increases or adjustments to the fare structure are assumed in FY 2003-04. Metrolink fares were increased for the Fiscal Year beginning July 1, 2002, the third of three Board approved adjustments to the base fare structure of the agency. The policy of the agency has been to adjust the fare structure on a biannual basis in relatively small increments so as to avoid the imposition of large scale changes on our passengers, and allow the underlying fare revenue growth to more closely mirror the general level of price inflation in the Southern California area. In FY 2003-04, the agency is planning a reevaluation of the entire Fare Policy and the results, upon approval, are expected to be incorporated into the FY 2004-05 Budget preparation. Average weekday ridership is projected to total 34,959 an increase of 2% over the FY 2002-03 4/7/2003, 9:57 AM 12 27 SCRRA FY 2003-04 Budget Budget. Total ridership, including all weekend services, is expected to increase 2% from the FY 2002-03 Budget. In FY 2003-04 budget assumes 256 operating days versus 255 in FY 2002-03. The basis of fare revenue calculations is the assumed level of ridership and projected revenue per rider. These variables are estimated on the basis of current and prior years, and are projected by line. The resulting Farebox Revenue is projected increase moderately to $43.3 million or 3% over the FY 2002-03 Budget. The projection of fare revenues includes the annual 25% reduction in the December monthly pass price. The one -zone discounts for the Lancaster Station funded by the LACMTA and for the Oceanside Station funded by OCTA are also assumed to continue for FY 2003-04. Freight railroads and Amtrak Intercity services operating over territory owned by SCRRA member agencies provide dispatching and maintenance -of -way revenues, based upon existing agreements. Dispatching Revenues are estimated to be unchanged from the current budget at $2.6 million. An additional $160,000 is estimated to be secured through the utilization of sponsorship partnerships for SCRRA special trains, primarily the Holiday Toy Express and contributions from Amtrak to support certain Ticket Vending Machine (TVM) functionality. Maintenance of Way revenues are estimated to increase to $8.5 million or 3% above the FY 2002-03 Budget. The increase is attributable primarily to the indexing of costs under various operating agreements for cost recovery purposes. Capital revenues consist of Federal, State and local agency funds as well as contributions from third parties, namely freight railroads, in the form of direct grants and participation in specific projects. Funding for the Capital Budget is provided by the following: Federal Funds - $ 75.1 million State Funds - 24.0 million Member Agency Funds - 36.7 million Third Party Participation - 1.9 million Other Local Funds - 2.9 million Total $ 140.7 million Expenses The major driving factors in projecting operating expenses, as referenced above, are service levels and the maintenance of equipment and rights -of -way requirements of the agency. Underlying cost -of -living increases ranging from 1% to 3%, included in multi -year service contracts, are also factored into the overall cost structure of the SCRRA. In the FY 2003-04 proposed budget, higher costs result from significant increases in the cost elements required to conduct ongoing operations. Increases in the costs of Direct Operations, Operating and Liability premiums and expenses, Fuel, Dispatching payments to other railroads, and contracted MOW expenses are expected to exceed 11%. Given the conservative estimates of increases in available revenues and Member Agency subsidies, great review has been given to all areas of the budget to ensure the SCRRA's ability to meet these ongoing operating requirements. Several areas were held to equivalent levels of FY 2002-03 spending, and a number of other functions have been 4/7/2003, 9:57 AM 13 28 SCRRA FY 2003-04 Budget reduced from previous levels. Management believes that a number of one time cost increases will be accommodated within the framework of the currently proposed budget and can be addressed as the agency progresses forward within an environment of greater resources. Additionally, costs are increasing within the operating budget as a result of staff specific costs including an increase in the costs of providing Medical, Dental, and other fringe benefits, and an assumed merit increase pool of 3%, compared to 4% in FY 2002-03. Salaries have also increased, though at an overall savings to the agency, through the addition of 4 facilities maintenance technicians previously provided under third party contract. 2.6 Summary of the FY 2003-04 Budget The FY 2003-04 combined Metrolink Budget is $244 million. The Operating Budget is $103 million and includes train operations at $83.6 million and maintenance -of -way at $19.4 million. The Rehabilitation/Renovation Budget is $40 million and includes $16.0 million in previously approved but uncompleted projects (carry -forward projects) and $23.9 million in new projects for FY 2003-04. The New Capital Budget includes $100.8 million in outstanding project authority. The SCRRA also continues to seek local, state or federal funds for additional New Capital projects. However, projects for which funds are not available for commitment are not included in the FY 2003-04 Budget. As funds become available, these projects will be amended into the budget. 2.7 Summary Total FY 2003-04 Budget Sources and Uses by Member Agency Table 2.1 provides a summary of the FY 2003-04 Budget revenues and expenditures by member agency. Revenues are separated into Local Funds for Operating and Capital; Other Operating Revenues that include Farebox Revenue, Miscellaneous Operating Revenues (principally Dispatching), and Maintenance -of -Way Revenues; and Other Capital Revenues which include Interest on Lease Proceeds, Other Agency Local, State, Federal, Amtrak Intercity and freight railroad funds. The expenditures are shown for the four categories of the Budget: Operating Expenditures; Maintenance -of -Way; New Capital; and Rehabilitation/Renovation. 2.8 Sum.marv. of FY 2003-04 Revenues Table 2.2 shows the projected revenues for the FY 2003-04 SCRRA Budget and compares these with actual revenues for FY 2000-01 though the FY 2003-04 Budget. • Actual farebox revenues have increased each year. FY 2003-04 reflects a 3% increase over the Adopted FY 2002-03 Budget, and a 4% increase over the current estimated actual. • Dispatching/Other Revenues include fees for dispatching freight, Amtrak intercity, and NCTD Coaster trains and is estimated to equal $2.7 million, an increase of 0.8% over the FY 2002-03 Budget. 4/7/2003, 9:57 AM 14 29 TABLE 2.1 FY 2003-04 BUDGET SOURCES AN D USES BY M EMBER AGENCY ($000s) Local Funds For Operating Operations Maintenan ce -of -Way Other Operating Revenues Farebox Revenue Miscellaneous Operating Revenues MOW Revenues mimes - Operating Expenditu res (Excludes MOW) Maintenance -of -Way Local Fun ds For Capital New Capital Rehabilitation/Renovation Other Capital R evenues Interest on Lease Proceeds Other Local Funds State Funds Federal funds Amtrak Funds UPRR Funds Tptl"a ri ariii Sources foRICajao New Capital Rehabilitation/R enov ation Mat r tr' ti $48,689.4 37,798 .0 10,891.4 $54,568.8 43,300.1 2,780.6 8,488 .1 S110.34$ 83,878 .7 19,379.5 • i4 $36,741.8 19,477.3 17,264.6 $103,993.7 1,798. 0 1,112.6 24,037. 8 75,106.8 939.0 999. 4 '' " i St 6,7 100,836.0 39,899.5 47.2% 36.6% 10.5 % 52.8% 41.9% 2.7% 8.2% 26.1% 13.8% 12.3% 73.9% 1.3% 17.1% 53. 4% 0. 7% 0.7% $28,888.0 22,826.9 6,061 .1 $30,031.2 23,383 .1 1,440.4 5,207 .8 47,650.3 11,268.9 $29,635.9 15,311.3 14,324.6 $0.0 15,311. 3 14,324.6 sgf $2,971.9 2,769.7 202.2 $3,522.1 3,484.3 37.9 0.0 6,291.8 $6.8 6 .8 0.0 $885.4 885.4 $8,192.9 5,671 .2 2,521.7 $11,023.4 8,267.3 845 .9 1,910 .2 14,784.4 4,431.9 00, $5,823.1 4,095.6 1,727.5 $6,910 .1 6,910.1 $1'2,733 .3^ 4,095.6 8,637. 7 $5,016 .1 3,539.6 1,476.5 $7,795.6 6,801.5 97.5 896.6 10,438 .6 2,373.1 $1,270.2 57.8 1,212.5 $4,849.8 4,849,8 6,062 .3 $3,620 .5 2,990.6 629 .8 $2,196.4 1,364 .0 358 .9 473.6 4,713.5 1,103 .4 $5.8 5.8 0.0 $3,729.7 3,729.7 3,729.7 $87,618.7 1,798.0 1,112.6 24,037.8 58,731.8 939.0 999 .4 881,358 .7 6,259.9 Sumn •FY04,xl,.Summery 4/4/200 .l TABLE 2.2 COMPARISON OF RE VENUES ($000s) 1 -7 s y 42 '- 1 h �', _ • � 1. s x• r � Y4 . .5si"'�vE* "` , FS • `'•i • . .'R` _ Operating Revenues Farebox $35,297 .9 $35,770 .4 $37,816.6 $37,589 .7 $41,901.0 $43,300.1 3.34% Dispatching/Other 2,177.9 2,440.7 2,438.0 2,537 .7 2,810 .0 $2,780.6 (I.04 %) Maintenance -of -Way 7,431.0 7,474 .1 7,523.4 7,911.8 8,262.3 8,488.1 2 .73 % Local Funds for Operating 39,896.8 34,345-5 43,896.1 41,709.5 45,712.3 48,689.4 6 51 % Subtotal r bng e e X11 :' .. �,8.G3 x' a `'..$`80 '',' .0307..;1 s -. $0,05iti,:..; ':.$9,,748`8 $98, 55 5103'2'582 , 4;63` , � • .r .�,+w-. , . T•. .. . err sflf3. oial'Re►�c�a[tTc� *+ u, Y' G ' `� r''''' '. 1R r 1' �� '6 ° S r 0°/ _ 1 h 2°/ a _ 0 � � � ' 238 45. r - S. _ 42 o 3°/ Capital Revenues State Federal Interest on Lease Proceeds Union Pacific Railroad/BNSF Amtrak Local Funds for Capital $28,763 .2 47,269.5 1,350.0 981.2 1,349.0 25,822. 8 $16,958 .3 6,484.2 924,5 1,007.1 0.0 12,366,3 $68,651 .5 43,753 .2 1,000.0 1,319 .0 941 .0 29,088 .3 $18,469.7 25,656.6 579 .2 0.0 203.2 14 54 59 .1 $50,096.8 43,254.6 1,000.0 1,088.1 1,189.0 23,081.0 $24,037.8 75,106.8 1,798.0 999.4 939.0 854 5 37,854 .5 (52 .02 %) 73.64% 79.80% (8.15%) (21.03%) 64 .01% d ` - /f. fa r 4 ai '�'�i' ) i � r + 1`3.aiti n7 �t 13 f ; �5 � • .i%4 r,I1. .• &,"r C n e► Ji'4 r SM k. ::NF',[,yy,fd4 �' ve 4I.W p..s fij : - _t M.. . µ,L S., ,- i''''! �-gF •- K.. Ip/ifr",.,' y,. 1 <"` ;.i. . -� n ::77}7/{S Ili?' .•5 -ti. ^r4, r ,:L.s c''' "4', •P Q '' 3 '6 _., ,h r � a - y� `� 98 f�'6 _ .;; it LF !`E •.w�' �l 1 i.5-: 5 {G` '4., j' $1 '±{ t p :- '1`+ . r 3'o .•r/ Summary. Charts-FY04.xls, 41412003, 8:40 PM SCRRA FY 2003-04 Budget • At the request of member agencies, Interest Income is traditionally not budgeted. These funds are contingent on cash flow and are used to reduce local operating subsidies as part of the end of the fiscal year member reconciliation. Member agency contributions for ordinary maintenance are partially offset by revenues received from the freight railroads and Amtrak Intercity. These revenue's rates were negotiated based on the historical expenditures on maintenance -of -way by the freight railroads prior to the purchase of these rights -of -way by the Member Agencies. However, due to the requirement of maintaining a higher standard of quality for passenger rail service, these revenues do not offset 100% of the costs. MOW revenues total $8.5 million or 3% above the FY 2002-03 Budget. Local funds from the five member agencies for the Operating Budget vary from year to year. Local funds in FY 2001-02 were $41.3 million, increased to $45.7 million in the FY 2002-03 Budget, and are projected to be $48.5 million in the proposed FY 2003-04 Budget. This figure represents a 6% increase over the FY 2002-03 Budget. Revenues for New Capital and Rehabilitation/Renovation include state and federal grants, interest on lease proceeds, and railroad and local funds. Projects are included in the Budget based upon the availability of these funds. The Capital Budget represents 58% of the total FY 2003-04 Budget authority. Dependent upon the availability of state and federal funds (principally for capital), local revenues as a percent of total revenues are estimated to be 35% of the FY 2003-04 Budget. 2:9 Summary of Operating and Capital Budgets by Expense Type Table 2.3 provides a summary of projected expenditures for FY 2003-04 by summary expense type. As shown in the table, expenditures have been segregated into eight primary expense types. These are listed and described below: • Labor - All SCRRA employee salaries, wages and fringe benefits. • Purchased Transportation - Payments to the contract operators of commuter train operations and maintenance -of -equipment. This category also includes Transfer Payments to other operators, and the use of Emergency Bus Services. • Services - Expenses for Operating Facilities Maintenance; Other Operating Train Services; Security (Los Angeles County Sheriff and private guard services); Public Safety Program; Ticket Vending Machine (TVM) Maintenance; Revenue Collection; Passenger Relations; Marketing; Media & External Communications; Professional Services; and Non -Labor Services. • Utilities/Leases - Expenses for telephone and other utilities and leases and rentals for office equipment; automobiles; facilities; rolling stock; maintenance -of -way equipment; and other 4/7/2003, 9:57 AM 17 32 SCRRA FY 2003-04 Budget TABLE 2.3 TOTAL AGENCY EXPENDITURES BY EXPENSE TYPE ($000s) Labor Purchased Transportation Services Utilities/Leases Maintenance -of -Way Insurance & Liability Other Expenses Indirect Agency Transfer to Operating $7,286.9 35,307.7 15,791.4 2,881.1 13,294.5 3,836.4 5,555.0 5,795.8 $9,860.9 37,759.9 16,481.5 2,636.5 14,360.2 4,390.0 6,885.2 6,311.4 $11,590.5 37,646.0 17,044.7 2,566.6 14,383.2 6,470.0 7,219.3 6,338.0 iq ' v141. "�4" '4, .• ,`sxf � `� f9?*iC �r}- �,,r rem d. t � a ''�'r1 '.--•. 3,. r ?4 �'"7 4 F y - - A�� .Y+'�'"i i ��tr r yY Yy a ,,'Z;SI %�' Y r.,,* �+,.." ' 1 y.'z 7` C`+, '. ®u. `/s,w� j'£- _' t� - ]]-►}i Labor Services Utilities/Leases Capital Other Expenses Indirect Agency Transfer to Capital $1,373.7 828.7 0.0 56,001.6 170.6 1,083.1 $1,422.0 235.0 0.0 116,678.2 71.8 1,302.5 $1,710.2 156.0 0.0 137,874.9 4.2 990.2 1% 0% 0% 98% 0% 1% .tea fie. t s¢ f J+ i R,v Y . Labor Purchased Transportation Services Utilities/Leases Maintenance -of -Way Insurance & Liability Capital Other Expenses Indirect Agency Support Transfer $8,660.6 35,307.7 16,620.1 2,881.1 13,294.5 3,836.4 56,001.6 5,725.6 6,878.9 $11,282.9 37,759.9 16,716.5 2,636.5 14,360.2 4,390.0 116,678.2 6,957.0 7,613.8 $13,300.8 37,646.0 17,200.7 2,566.6 14,383.2 6,470.0 137,874.9 7,223.5 7,328.1 57% 3% 3% 4/4/2003 926 PM Dept Budgets by Exp Type-FY04As- immary 33 SCRRA FY 2003-04 Budget leases and rentals. • Maintenance -of -Way - Expenses for maintenance of track, signal & communications; structures, extra -ordinary maintenance; maintenance -of -way equipment maintenance; and other maintenance -of -way expenses. • Insurance & Liability — Expenses for insurance premiums, claims and claims administration. • Capital - Expenses for Rehabilitation/Renovation and New Capital projects. • Other Expenses — Expenses for materials and supplies; taxes; miscellaneous expenses including dues and subscriptions; travel, meetings, and conferences; training and seminars; advertising; legal and meeting notices; postage and messenger; etc. The majority of SCRRA expenditures are included in the Capital expense type, 57%, followed by Purchased Transportation, 15%. Reflecting further that the SCRRA contracts out the a majority of the services included in the budget, Agency Labor, makes up 5% of the total budget and 11% of the Operating Budget. Within the Operating Budget, Purchased Transportation makes up 36%, Services make up 17%, and Maintenance -of -Way is 14% of the total. 2.10 Summary of Operating and Capital Budgets, by. Department Table 2.4 provides a summary of projected expenditures for FY 2003-04 by Department. 2.11 Summary of FY 2003-04 Authorized Positions Table 2.5 provides a summary of the FY 2003-04 proposed positions by department and compares this total with the authorized levels of FY 2001-02 and FY 2002-03. During FY 2002- 03, the agency increased its authorized position count by 2 to accommodate the procurement and implementation of the new and comprehensive asset management system previously referenced. In FY 2003-04, 4 new positions are proposed to bring total staffing to 213 Board authorized positions. These new positions include the following: Equipment Facilities Maintenance - Maintenance Technician (4) These positions have previously provided services to the SCRRA under a third party contract. The inclusion of these positions as SCRRA staff results in a savings to the operating budget as compared to previous periods. 4!7/2003, 9:57 AM 19 34 SCRRA FY 2003-04 Budget TABLE 2.4 COMPARISON OF EXPENDITURES BY DEPARTMENT ($000s) F �S_ 1 at e i, - _ •t Y f [3*.. - . 13 1�, I .R Executive $1,720.1 $2,109.1 $2,153.1 2% Support Services & Technology* 13,145.1 13,092.7 15,995.1 22% Operations 29,471.9 32,246.0 33,567.0 4% Engineering & Construction 17,832.7 18,026.1 18,163.3 1% Equipment 19,991.6 24,528.6 24,289.1 (1%) Communications. & Development 3,695.5 4,353.8 4,514.6 4% Finance 3,891.9 4,329.3 4,576.0 6% �.r Q' {..•7.4 m' w'.'' Executive $197.1 $195.0. $159.8 (18%) Support Services & Technology 842.2 880.9 941.5 7% Operations 68.7 0.0 0.0 - Engineering & Construction 38,791.7 85,016.7 68,585.7 (19%) Equipment** 18,550.0 19,874.4 62,483.6 214% Communications & Development 32.6 54.5 37.8 (31%) Finance 975.4 13,688.0. 8,527.2 (38%) .-•,"' Pt4ir 'A. ' ti .'° : � 'ia w S � T,24"i Executive $1,917.2 $2,304.1 $2,312.9 0% Support Services & Technology 13,987.3 13,973.6 16,936.6 21% Operations 29,540.6 32,246.0 33,567.0 4% Engineering & Construction 56,624.5 103,042.8 86,749.0 (16%) Equipment 38,541.5 44,403.0 86,772.7 95% Communications & Development 3,728.1 4,408.2 4,552.4 3% Finance 4,867.3 18,017.3 13,103.2 (27%) Support Service and Technology includes the expenditure of Insurance Premiums and Claims. "' The Equipment Department increases as a result of the planned receipt of additional rolling stock funding. 4/5!2003 3:07 PM Dept Budgets by Exp Type-FY04jds-Dept 35 SCRRA FY 2003-04 BU DGET TABLE 2.5 SOUTHERN CALIFORNI A REGIO NAL RAIL AUTHORI TY FY 2003-04 BUDGET COMPARISON OF P OSITIONS BY DEP ARTMENT �. ,..% 'i :. • ... �. : .: l :.'- .! Y1 tl r aid P i 1 � .,�J 13 1!� jti Y�l 1) x.., 1 .0 .i. . _.+ni �1.�� . J }` .� . .. . i .. }.,Ff F'�1y-�.r J7 Yy .R' � '� 5...•. r �?. 1;5 '3 tPP, ! �� y�}- 4 ,./20' ._.;ry r, w i5*•. TM} t :. �C! � '� fi r•. } ' 'r i .t °_ hl� r - $ V# C—, t r . Execu tive 7 8 8 8 Support Services and Technology Operation s Engineering and Construction Equipmen t Communications an d Dev elopmen t 27 31 28 57 2 301 57 30 57 37 37 37 37 'Fin ance 7 18 7 20 7 20 11 20 24 25 25 25 Subtotal 151 182 2 184 188 Ambassadors - Full Time 3 3 3 3 Ambassadors - Part Time 22 22 22 22 1) In Fiscal Year 2002-03 increase inclu ded the planned addition of 25 Dispatching personnel. 2)In Fiscal Year 2002-03, the SCRRA added the positions of Materials Man ager, and IT administrator as part of the implementatio n of an upgraded Materials Ma nagement System FY041able2.5jcl' ""4009; SCRRA FY 2003-04 Budget SECTION 3 SOUTHERN. CALIFORNIA REGIONAL RAIL AUTHORITY OPERATING BUDGET 4/7/2003, 9:57 AM 22 37 SCRRA FY 2003-04 Budget 3.0 OPERATING BUDGET 3.1 Performance Data Figures 3.1 through 3.4 provide a summary of the FY 2003-04 performance data as projected in the Budget and compared with historical data since 1992. The budget illustrates the continuing growth and efficiency of Metrolink operations. As shown in Figures 3.1 and 3.2, both operating expenses and train -miles have increased, but prior to FY 2002-03, operating expenses have increased at a significantly lower rate. Fare revenues have increased with ridership, and maintenance -of -way and dispatching revenues continue to remain strong. Several factors contribute to moderate the increase in member agency subsidy requirements for FY 2003-04 as compared with the Budget for FY 2002-03: Factors tending to increase member agency subsidies: • Direct Train Operating expenses are projected to increase 11% • Total Revenue Miles operated is expected to climb 3% • Costs of diesel fuel for operations 9%. • Combined increases m the costs of Operating and Property Insurance premiums of 56% • Relatively flat growth in farebox revenues 3% • Costs of servicing the Agency's improved TVM network 13% Factors tending to moderate member agency subsidies: • Maintenance -of -Way expenditures are projected to decrease by 3% • Significant savings as a result of a new Maintenance of Equipment (MOE) contract 5% • Moderated growth in virtually all discretionary expenditures of the agency. Figures 3.3 and 3.4 provide various operating statistics. Revenue recovery is calculated as the ratio of total operating revenues over total expenses less rolling stock lease and maintenance -of - way extra -ordinary maintenance.2 Since FY 1996-97 the revenue recovery index has been over 50% and is projected at 53% for FY 2003-04. In past years, final actual revenue recovery ratios have generally been higher than the budget projection due to contingencies included in the annual budgets as well as interest received on fares and other funds received in advance for operations and capital projects. Farebox revenues are estimated to cover 46% of total operating expenses for FY 2003-04. Operating expense per train -mile is calculated net of extra -ordinary maintenance and is projected to be $48.68 in FY 2003-04 an increase from $48.48 in the Fiscal Year 2002-03 Budget. 2 Extra -ordinary maintenance covers damages due to vandalism, crossing gate accidents, derailments, fires, storm damage and other expenses as required. In years without unusual rainfall or train accidents, $500,000 has been a reasonable estimate, and this is the level proposed for FY 2002-03. In other years, such as has been experienced in FY 1997-98 with the El Nino storms, the total can easily exceed $3,500,000. 4/7/2003, 9:57 AM 23 38 FIGURE 3.1 SOUTHERN. CALIFORNIA REGIONAL RAIL AUTHORITY ANNUAL OPERATING DATA - FY 92-93 TO FY 03-04 $110 $90 $70 $50 , $30 - $10 OPERATING EXPENSE (Millions) FY 92-93 FY 93-94 FY. 94-95 FY 95-96 FY 96.97 FY 97-98 FY 98-99 FY 99-00 FY 00-01 FY 01-02 FY 02-03 FY03-04 518.86 $453) S57.88 564.4 $68.4 $73.7 577.9 $75.1 $80.0 589.7 $98.6 $103.3 REVENUES ($Millions) $60 $50 $40 - $30 $20 $10 - FY.92-93 FY 93-94 FY 94-95 FY 95-96 FY 96-97 FY 97-98 FY 98-99 FY 99-00 FY 00-01 FY 01-02 FY 02-03 FY03-04 $3.5 $15.4 523.3 $30.7 $37.7 $38.0 $39.1 $41.8 $44.9 3481) $529 $54.6 $50 - $40 J $30 - $20 - $10 OPERATING SUBSIDY ($Millions) FY 92-93 FY 93-94 FY 9495 FY 95-96 FY 96-97 FY 97-98 FY 98-99 FY 99-00 FY. 00-01 FY 01-02 FY 02-03 FY03-04 $15.7 $28.4 $34.1 $33.6 $30.7 535.7 $37.6 533.3 .534.3 541.7 $45.7 $48.7 Actuals to FY 01-02, Budget for FY 02-03 and FY 03-04 4/4/2003 26 CHARTSO4.XLS C3.1 39 FIGURE 3.2 SOUTHERN CALIFORNIA REGIONAL RAIL. AUTHORITY ANNUAL OPERATING DATA - FY 92-93 TO FY 03-04 TRAIN MILES (Thousands) 2,500 - 2,000 - 1,500 - 1,000 500 - FY 93-94 FY.94-95 FY 92-93 FY 95-96 FY 96-97 FY 97-98 FY 98-99 FY 99-00 FY 00-01 FY 01-02 FY 02-03 FY03-04 211.8 708.0 978.5 1,155.8 1,295.8 1,405,9 1611.1 1,757.2 1,792.3 1,872.5 2,088.1 2,145.7 $50 FARES ($Millions) $40 - $30 $20 $10 $- FY 92-93 826 FY 93-94 $11.7 FY 94-95 $17.2 FY 95-96 821.8 FY 96-97 524.5 FY 97-98 827,1 FY 98-99 $29.1 FY 99-00 331.9 FY 00-01 5353 FY 01-02 537.6 FY 02-03 541.9 FY03-04 $43.3 40,000 AVERAGE WEEKDAY RIDERSHIP 30,000 - 20,000 - 10,000 - FY 92-93 FY 93-94 FY 94-95 FY 95-96 FY 96-97 FY 97-98 FY 98-99 FY 99-00 5,399.2 12,856 17,261 21,207 21,704 25,700 26,851 FY 00-01 27,049. 31,519 29,966 e� 34959 Actuals to FY 01-02, Budget for FY 02-03 and FY 03-04 4/4/2003 27 CHARTSO4.XLS C3.2 40 FIGURE 3.3 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY ANNUAL OPERATING DATA - FY 92-93 TO FY 03-04 REVENUE RECOVERY 70% 60% 50% 40% 30% 20% - 10% FY 92-93 FY. 93-94 FY 94-95 FY 95-96 FY 96-97 FY 97-98 FY 98-99 FY 99-00 FY 00-01 FY 01-02 FY 02-03 FY03.04 16.8% 37.3% 41.7% 48.0% 55.7% 54.1% 51.6% 56.2% 57.6% 53.8% 53.9% 53.1% FAREBOX RECOVERY 60% 50% - • 40% 30%-' 20% 10% • FY 92-93 FY 93-94 FY 94-95 FY 95-96 FY 96-97 FY 97-98 FY 98-99 FY 99-00 FY 00-01 FY 01-02 FY 02-03 FY03-04 14.4% 26.0% 33.4% 38.0% 42.1% 43.5% 41.4% 47.7% 49.8% 46.2% 46.6% 459% OPERATING EXPENSE /TRAIN MILE 5100 $75 $50 - ..\\*------.-. 4 $25 • FY 92-93 FY 93-94 FY 94-95 FY.95-96 FY 96-97 FY 97-98 FY 98-99 FY 99-00 FY 00-01 FY 01-02 ' FY 02-03 FY03-04 589.05 564.00 $58.63 555.27 552.41 550.01 548.40 1 542.45 $4437 547.93 547.24 548.12 Actuals to FY 01-02, Budget for FY 02-03 and FY 03-04 Revenue Recovery = Operating Revenues/Operating Expenses Net of Rolling Stock Lease Payments & Extra -Ordinary Maintenance Farebox Recovery= Farebox Revenuc/Operating Expenses Net of MOW Revenues, Rolling Stock Lease & Extra -Ordinary Maintenance 4/4/2003 28 CHARTSO4.XLS C3.3 41 FIGURE. 3.4 SOU'lIiERN CALIFORNIA REGIONAL RAIL AUTHORITY ANNUAL OPERATING DATA - FY 92-93 TO FY 03-04 OPERATING EXPENSE/PASSENGER-MILE $1.0 50.8 • $0.6 - $0.4 $0.2 5- - FY 93-94 FY 96-97 I FY 97-98 50.34 1 5032 FY 92-93 50.71 50.41 FY 94-95 5037 FY 95-96 50.33 FY 98-99 59.32 FY 99-00 50.29 FY 00-01 $0.26 FY 01-02 50.29 FY 02-03 50.29 FY03-04 50.30 520 $15 $10 OPERATING SUBSIDY/RIDER $5 - $- FY 93-94 FY 94-95 4 FY 92-93 FY 95-96 FY 96-97 FY 97-98 FY.98-99 FY 99-00 FY 00-01 FY 01-02 FY 02-03 FY03-04 5I6.70 58.63 57.75 56.18 $5.55 55.66 $5.59 54.75 54.16 54.90 55.03. 55.25. $1.0 50.8 $0.6 50.4 50.2 OPERATING SUBSIDY/PASSENGER-MILE FY 92-93 FY 93-94 50.59 50.26 FY 94-95 50.22 FY 95-96 FY 96-97 FY 97-98 FY 98-99 FY 99-00 FY 00-01 FY01-02 FY. 02-03 FY03-04 50.17 Actuals to FY 01-02, Budget for FY 02-03 and FY 03-04 4/4/2003 Sots 50.16 50.15 50.13 50.11 50.13 50.13 50.14 29 CHARTSO4.XLS C3.4 42 SCRRA FY 2003-04 Budget Operating expense per passenger -mile has fluctuated between $0.30 and $0.34 since FY 1995-96 and is projected to be $0.30 in FY 2003-04. Operating subsidy per rider has decreased as the system matured, and the projection for FY 2003-04 is $5.22 As Metrolink trips are relatively lengthy, a better indication of the efficiency of the system is operating subsidy per passenger - mile. This index is projected to equal $0.14, which is very competitive with other transit properties in the region. 3.2 Summary of FY 2003-04 Statistics by. Line Table 3.1 provides the estimated operating statistics by line for FY 2003-04 and the calculation of various performance ratios. Revenues and expenses are allocated to lines using formulae described in detail in Sections 6.1 through 6.4. Average trip length for FY 2003-04 is projected at 36.4 miles. Dependent on ridership and revenues received for each line, operating statistics vary considerably. The Orange County, San Bernardino, and IEOC Lines have the highest revenue recovery and most favorable cost- effectiveness and service efficiency indices as these lines have the highest ridership per train and train -mile. The Ventura County and Antelope Valley lines have the lowest revenue recovery and least favorable cost-effectiveness indices as these lines have lower ridership per train and the corresponding highest operating costs and subsidy per train -mile. 3.3 Components. Of The. Operating Budget The two components of the Operating Budget - Operations and Maintenance -of -Way, have multiple sub -components of both expenses and revenues, which are provided to permit allocation to line and to member agencies. • Operations — This portion of the Operating Budget includes expenses required to operate the Metrolink system including train operations, maintenance of equipment, fuel, security, utilities, transfer payments to other transit operators, revenue collection, payments to freight railroads for dispatching, station maintenance, passenger services, general and administrative expenses, professional services, and insurance. • Maintenance -of -Way — This portion of the Operating Budget represents ordinary maintenance of the rights -of -way owned by SCRRA member agencies, and includes routine inspection of track, signals, structures and repairs as needed. 3.4 Operating Budget Assumptions. Service - The FY 2003-04 Budget assumes the operation of 143 daily trains on seven lines and 32 weekend trains on two lines. Total Revenue Train Miles are expected to increase approximately 3% over the FY 2002-03 Budget. The FY 2003-04 budget assumes new services will be provided on the San Bernardino, Inland Empire Orange County, and the Ventura County Lines. Two new round trips, one AM and one PM peak period trains, LAUS to Covina, are proposed on the San Bernardino Line to alleviate crowding on peak period trains. A new off 4/7/2003, 9:57 AM 28 43 TABLE 3.1 SOUTHE RN CALIFORNIA REGION AL RAIL AUTHORITY FISCAL YEAR 2003-04 BUDGET OPERATING STATISTICS OPERATING STA TISTICS: Train Trips - FY 03'04 Budget Passenger Boardings FY 02'03 Budget Passenger Boardings FY 03'04 Proposed % Change - FY 03 Budget to FY 04 Proposed Train Miles FY 02'03 Budget Train Miles FY 03'04 Proposed % Change - FY 03 Budget to FY 04 Proposed Passen ger Miles FY 02'03 Budget Passenger Miles FY 03'04 Proposed % Change - FY 03 Budget to FY 04 Proposed Average Weekda y Ridership Average Trip Length (Miles) FINANCIAL ($000): Operating Cost (w/ MOW) FY 02'03 Budget Operating Cost (w/ MOW) FY 04 Proposed % Change - FY 03 Budget to FY 04 Proposed Operating Cost (w/o MOW Extra-O rdinaryMtne) FY 04 Proposed Operating Cost (w/o MOW) FY 04 Propo sed Subsidy (w/MOW) FY 02'03 Budget Subsidy (w/MOW) FY 03'04 Proposed % Change - FY 03 Budget to FY 04 Proposed Farebox Revenu e FY 02'03 Budget Farebox Revenu e FY 03'04 Proposed % Change - FY 03 Budget to FY 04 Proposed Other Reven ues FY 04 Proposed (2) Average Fare Per Passenger FY 04 Proposed COST / SER VICE EFFICIENCY FY 03-04 Op Cost /Passenger (w/o MOW Extra -Ordinary Main tenance) Op Cost /Passenger Mile (w/o MOW Extra -Ordin ary Main t) Subsidy / Passenger Subsidy / Passenger Mile Op Cost / Train Mile Op Cost / Train Mile (w/o MOW) Subsidy / Train Mile Farebox Recovery Revenue Recovery 58 20 32 2,832,650 903,740 1,595,750 2,864 944 934,400 1,682,792 1.1 % 3 .3% 5 .2% 516,120 240,210 461,490 531,025 256,135 463,203 2 .8% 6.2% 0.4% 102,266,357 26,243,202 59,761,907 102,969,678 31,885,962 66,903,650 0.7% 17.7% 10.7% 10,256 3,650 6,209 35 .8 33.9 39.6 24,158.4 14,632.9 21,183.1 25,187 .4 15,331.7 22,039.5 4 .1 % 4 .6% 3.9% 25,062.9 15 ,238.4 21,908.2 19,560.4 12, 012.7 17,103.6 8,128.1 8,797.8 12,309 .7 9,043.7 9,190 .7 13,056.5 10.1% 4.3% 5.7% 13,443. 6 3,734.7 6,344.6 13,561. 5 3,917.3 6,3813 0. 9% 4.7 % 0.6% 2,582.2 2,223 .7 2,601.7 $4.73 54.19 53 .79 $8.75 516.31 513.02 $0.24 50.48 $0.33 53.16 59.84 $7.76 $0.09 $0. 29 50.20 $47.20 559.86 547.58 $36. 84 546. 90 $36. 92 $17. 03 535.88 528. 19 59.670% 28. 648% 32278% 64.413% 40.299% 41.003% 11 12 1,173,000 1,129,472 (3 .9%) 194,643 198,171 1.8% 48,519,631 42,993,440 (12 .9%) 4,412 37,8 10,836 .7 11,488 .2 5.7% 11,469.8 11,062.0 4,743.5 5,231.4 9.3% 5,852 .4 5,986.3 2.2% 270.6 55.30 $10 .16 50 .27 54.63 50.12 557 .97 555.82 526.40 52.924% 54.550% 19 1,565,397 1,411,584 (10 .9%) 355,033 359,546 1.3% 60,353,400 54,059,256 (11.6%) 5,514 38 .0 17,965 .4 18,553 .4 3.2% 18,450 .1 14,333 .5 7,100 .4 7,836.9 9 .4% 7,652.4 7,508 .6 (1.9 %) 3,207.9 $5.32 $13.07 50 .34 $5.55 $0 .14 $51.60 539.87 $21.80 45 .609% 58.084% 14 816,000 844,800 3.4 % 195,187 210,501 7 .3% 34,435,200 27,559,818 (24 .9 %) 3,300 32.4 7,962.7 8,539 .2 6.8 % 8,513 .0 7,807.0 3,693.1 3,695 .5 0 .1% 3,947 .9 4,494.7 12 .2% 348 .9 $5.32 $10.08 50.31 $4 .37 50 .13 540.57 $37 .09 $17.56 54 .532% 56 .897% 9 204,000 414,720 50.8% 125,460 127,168 1 .3% 7,140,000 14,315,130 50.1 % 1,620 34.3 1,896.2 2,118.8 10.5 % 2,115.9 1,999.5 939 .7 634.7 (48.0%) 925.3 1,450.4 36.2% 33.7. 53.50 $5.10 $0.15 $1 .53 50 .04 516,66 515.72 $4.99 69.658% 70,1415 175 9 .090,537 9,282,712 2.1 % 2,088,143 2,145,748 2.7 % 338,719,697 340,686,934 0.6% 34,959 36.4 98,635.5 103,258.2 4.5% 102,758.2 83,878.7 45,712,3 48,689.4 6 .1% 41,901.0 43,300.1 3.2% 11,268.7 $4.66 $10.80 5030 55.25 $0 .14 $48 .12 539 .09 $22.69 45.932% 53.104% Notes: (1) Costs include all expenses for Metrolink and MOW on operating and non -operating lines (2) Other revenues include dispatching fees and MOW rev enues from freight and Amtrak due to individual member agencies. (3) Farebox recove ry is the ratio of farebax revenue to total expenses net of MOW revenues, roiling stock lease payments and extra -ordinary maintenance. (4) Rev enue recovery is the ratio of operating revenues to o peratin g ex penses net of rolling stock lease payments and e xtra -ordinary maintenance. Ann its 03'04 Budget.xls 4/4/20038:53 PM SCRRA FY 2003-04 Budget peak round trip on the IEOC line is proposed utilizing equipment available out of Oceanside. One Oceanside to Irvine peak period train segment is being replaced by this new service. This service change will however leave the existing peak period Irvine to San Bemardino train in place. Additionally, two extensions to Montalvo, one each in AM and PM peak periods, from Moorpark are anticipated on the Ventura County Line. The 1EOC and Ventura County Lines services are expected to begin in the Fall of 2003, and the additional service on the San Bernardino Line is expected to be added in early calendar 2004 upon the completion of currently ongoing capacity improvements. A new program implemented in FY 2002-03 and continued into FY 2003-04 is the "Rail to Rail" program in which the SCRRA, Amtrak and CALTRANS work together to allow passengers, on those lines where complementary service exists, holding valid Metrolink monthly passes or Amtrak tickets, t� choose the service provider most convenient to their travel needs. A graduated reimbursement scale has been negotiated based on passenger counts. The service has been so successful that the number of passengers using the service surpassed the annual projections within the first seven months of operations. Tables 3.2 and 3.3 reflect service assumptions and revenue miles projected for FY 2003-04. TABLE 3.2 SERVICE ASSUMPTIONS FOR FY 2003-04* Line Weekday Trains Saturday Trains Sunday Trains San Bernardino 30 San Bem-LA 4 Covina — LA 7 San Bern -LA 9 Riverside -LA 2 San Bern LA 6 Riverside -LA Ventura County 4 Chatsworth -LA 10 Moorpark -LA 6 Montalvo. -LA Antelope Valley 2 Santa Clarita-LA 4 Via Princessa-LA 18 Lancaster -LA 8 Lancaster -LA Riverside 12 Riverside -LA (UP) 91 9 Riverside -LA (Fullerton) Orange County 6 Irvine -LA 2 Laguna Nigel — LA 1 San Juan Cap -LA 10. Oceanside -LA Inland Empire to Orange County 5. San Bem-Irvine 1 San Bern -Laguna Nigel 1 San Bern -San Juan Cap 1 San Bern -Oceanside 3 Riverside -Irvine 2 Riverside - Laguna Nigel 1 Riverside -Oceanside Burbank Turns 9 Burbank Airport -LA 2 Burbank -LA *Includes new service enhancements. Maintenance of Equipment (MOE) — The current fleet of rolling stock consists of 38 Locomotives and 143 Passenger Vehicles. In FY 2002-03 the agency took delivery of 1 operating and 3 non -operating, used, locomotives. The operating unit is anticipated to be placed in service 4/7/2003, 9:57 AM 30 45 SCRRA FY 2003-04 Budget in Spring of 2003. Upon completion of the rehabilitation of all four of these locomotives, the agency will have greatly expanded the capacity to perform ongoing ordinary maintenance, as well as the more extensive rehabilitation and renovation program, and anticipate the operation of longer trains on certain selected routes. It should be noted that as a result of a new contract for the provision of Maintenance of Equipment (MOE) services, effective July 1, 2003, a significant annual savings has been realized of approximately $1 million. Table 33 REVENUE TRAIN MILES FOR FY 2003-04 Line San Bernardino Line Ventura County Line Antelope Valley Line Riverside. Line (via UP) 91 Line Orange County Line Inland Empire/Orange County Line 15,416.7 Burbank Turns 38,352.0 36,687.6 (1,664.4). Total Revenue. Miles 2,088,1433 2,145,748.2 57,604.9 2.8% Note: FY 2003-04 includes 1 additional service day over FY 2002-03 The reduction in Burbank Tum service is the result of a reallocation of service between Burbank Airport and Burbank not assumed in the FY 2002-03 Budget FY 2002-03 Budget 510,646.2 240,210.0 439,559.6 179,622.0 141,142.5 334,636.5 203,974.5 FY 2003-04 Budget 525,4862 256,135.2 443,130.4 182,973.6 143,035.2 338,908.8. 219,391.2 Increase/ (Decrease) 14,840.0 15,925.2 3,570.8 3,351.6 1,892.7 4,272.3 % Change 2.9% 6.6% 0.8% 1.9% 1.3%. 13% 7.6% -4.3% Maintenance of Way (MOW) — The SCRRA is primarily responsible for the maintenance and integrity of approximately 331 track miles within the five county region. For further detail regarding the assumptions of the MOW program, please see Section 3.8. Revenues - Farebox revenues are projected from estimates of ridership developed in coordination with member agency staff. FY 2002-03 included the third of three Board approved fare increases and FY 2003-04 assumes no change to the underlying fare rates. The projected total annual ridership increase is estimated at 2% and assumes no lasting revenue or ridership impacts of the recent rise in gasoline prices. Average Weekday ridership is estimated to increase 2% as well. Revenue per rider is based on average trip length and mix of fare type. The revenue per rider experienced on each line is used to estimate farebox revenues for each line and is based on specific projections of ridership. Dispatching revenues are estimated based on agreements between the SCRRA and the freight railroads, Amtrak Intercity, and NCTD Coaster services. Dispatching revenues from the Burlington Northern Santa Fe Railroad are increased by the railroad index and Amtrak Intercity revenues are based on a formula that includes the movements of trains and certain performance incentives. The agreement has reached its current incentive cap and only increases to the base affect a change in the total. Revenues from Union Pacific Railroad are based on an agreed upon flat rate fee. Other miscellaneous revenues include potential sponsorship reimbursements of the annual special Holiday Trains, participation by Amtrak in the agency's Ticket Vending Machine (TVM) 4/7/2003, 9:57 AM 31 46 SCRRA FY 2003-04 Budget program based on a negotiated rate that assumes useage of SCRRA TVM equipment to sell Amtrak tickets, and other minor reimbursements to the agency. Expenses - In projecting expenses, cost of living or labor agreement -related increases built into existing contracts are assumed. These increases range from a low of 1% to a high of 3%. The average cost of diesel fuel is estimated to be $1.05 per gallon in FY 2003-04 Budget, an increase from $1.00 per gallon for FY 2002-03. A significant increase is also estimated in the cost of Operating and Liability premiums as a result of the continuing price shock to the insurance markets in the aftermath of the September 11, 2001 attack on the United States. An increase of 56% is included in the FY 2003-04 Budget. For a detailed discussion of individual Operating Cost components, sec Section 3.6 below. 3.5 Summary of Revenues and Expenses by Operating Cost Component Table 3.4 shows revenues and expenses by operating cost component of the Operating Budget for FY 2003-04 with comparisons to FY 2001-02 Actual Expenses, and the FY 2002-03 Budget and Current Forecast. Operating revenues include farebox revenues, dispatching and other revenues as well as maintenance -of -way revenues. Operations expenses include expenses required to operate the Metrolink system including train operations, maintenance of equipment, fuel, security, utilities, transfer payments to other transit operators, revenue collection, payments to freight railroads for dispatching, station maintenance, passenger services, general and administrative expenses, professional services, and insurance. Operations expenses are distributed to the lines (and subsequently to member agencies) based on several formulae. Items such as direct Train Operations expenses and fuel are distributed based on train -miles. Payments to freight railroads are charged directly to lines. Additionally, a set of Base costs consisting of those costs that do not vary with the number of trains operated is included in the Operations Budget. These allocation formulae are described in Sections 6.1 and 6.2. Maintenance -of -way expenses are developed by SCRRA to ensure the level of ordinary maintenance is sufficient to prevent any loss of service quality. Levels of maintenance required on individual lines depend upon several factors including the condition of the infrastructure; levels of train traffic; levels of freight traffic; the number of road crossings; the number of curves; and exposure to storm damage. 4/7/2003, 9:57 AM 32 47 SCRRA FY 2003-04 Budget TABLE 3.4 ANNUAL DISTRIBUTION BY COST COMPONENTS Revenues Farebox Revenue Dispatching/Other Revenues MOW Revenues Member. A; enc Revenues 3{�a� $37,589.7 $41,901.0 2,537.7 2,810.0 7,911.8 8,262.3 41,709.5 45,712.3 $41,542.2 2,650.0 8,152.4 45,178.9 $43,300.1 2,780.6 8,488.1 48,689.4 15.2% 9.6% 7.3% . 16.7% 33% (1.0%) 2.7% 6.5% 4.2% 4.9% 4.1% 7.8% Operations & Services Train Operations Equipment Maintenance Contingency (Train Ops) Fuel Non -Scheduled Rolling Stock Repairs Operating Facilities Maintenance Other Operating Train Services Security - Sheriff Security. - Guards Supplemental Additional Security Public Safety Program Passenger Relations Holiday. Trains TVM Maintenance/Revenue Collection Marketing Media & External Communications Utilities/Leases Transfers to Other Operators Amtrak Transfers Station Maintenance Rail Agreements Subtotal Operations &. Services Maintenance -of -Way MoW - Line Segments MoW - Extra -Ordinary Maintenance Subtotal Maintenance -of --Way General & Administrative Staff Salaries & Fringe Benefits Ambassadors Non -Labor. Costs Allocated Overhead Subtotal Staff Services Professional Services Subtotal Services Subtotal General & Administrative Contingency (Non -Train Ops) Insurance Liability/Property/Auto Claims Claims Administration Subtotal Insurance 17,404.3 19,457.4 19,308.4 20,536.2 13,765.0 16,539.8 14,900.0 15,683.6 200.0 - 150.0 3,711.9 5,100.0 5,400.0 5,557.0 46.2 400.0 321.7 350.0 1,0093 1,015.2 964.9 999.6 1843 202.6 162.1 145.0 2,732.6 3,017.1 3,0182 3,093.6 789.1 842.8 .783.4 829.7 330.0 330.0 340.0 439.8 497.5 423.1 489.0 1,135.2 1,377.0 1,280.9 1,342.3 154.6 157.2 1572 147.5 1,899.2 2,210.0 2,142.9 2,502.5 1,112.2 1,048.6 .838.4 958.4 546.8 618.2 5873 597.4 1,591.1 1,674.1 1,600.0 1,707.0 3,264.2 3,225.0 3,225.0 3,580.0 - 450.0 385.0 490.0 657.8 712.1 680.0 .637.1 2,790.7 2,544.6 2,544.6 2,826.5 53,234.4 61,619.1 59,053.0 62,9623 18,123.9 19,521.7 18,350.1 18,879.5 520.5 500.0 470.0 500.0 18,644.4 20,021.7 18,820.1 19,379.5 4,933.8 5,075.8 5,165.0 6,008.6 567.0 496.0 580.0 490.7 803.7 6713 760.0 602.0 4,391.1 4,622.2 5,690.0 5,259.7 10,695.6 10,865.3 12,195.0 12,361.0 993.7 1,359.4 1,3653 1,485.4 993.7 1,359.4 1,3653 1,485.4 11,689.3 12,224.7 13,5603 13,846.4 1,028.7 500.0 500.0 500.0 2,322.1 2,945.0 3,996.3 4,595.0 1,943.1 750.0 750.0 1,350.0 886.7 575.0 843.9 625.0 5,151.9 4,270.0 5,590.2 6,570.0 18A% 5.5% 6.4% 13.9% (5.2%) 5.3% (25.0%) - 49.7% 9.0% 2.9% .657.0% (12.5%) 8.8% (1.0%) (1.5%) 3.6% (21.3%) (28.4%) (10.5%) 13.2% 2.5% 2.5% 5.1% (I.6%) 5.9% - 3.0% 3.0% 11.2% (1.7%) 15.6% 18.2% (2.5%) 4.8% (4:6%) (6.2%) (62%) 31.8% 13.2% 16.8% (13.8%) (8.6%) 14.3% 93% (3.4%) 1.7% 7.3% 2.0% 6.7% 9.7% 11.0% 11.0% - 8.9% 27.3% (3.2%) (10.5%) (6.3%) 1.3% 11.1% 11.1% 183% 2.2% 6.6% 4.2% (3.3%) 2.9% (3.9%) (0.0%) 6.4% 3.9% (3.2%) 3.0% 21.8% 18.4% 163% (13.5%) (1.1%) (15.4%) (25.1%) (10.3%) (20.8%) 19.8% 13.8% (7.6%) 15.6% 13.8% 1.4% 49.5% 9.3% 8.8% 495% 93% 8.8% 185% 133% 2.1% (51.4%) 97.9% 56.0% 15.0% (30.5%) 80.0% 80.0% . (29.5%) 8.7% (25.9%) 27.5% 53.9% 17.5% �cas'uns L+ n�' `1.�:°.� try +n sN({ �1�"°m,a.,}.. .' 4 ~ :'r• _. 4/4/2003 &55 PM 48 Budgel04-New Seniceids-Summary SCRRA FY 2003-04 Budget 3.6 Detail of Operating Budget The FY 2003-04 Operating Budget is $4.6 million or 4.3% greater than the FY 2002-03 Budget. Major factors contributing to this increase are: • Increase of $1.4 million, 8%, in Train Operating expenses under the Amtrak contract, of which approximately $0.8 million is related to a significant and contractually required increases in the costs of fringe benefits paid on behalf of Engineers, Conductors, and Amtrak management staff. • As a result of the implementation of a new Maintenance of Equipment (MOE) contract beginning July 1, a significant savings has been realized. A reduction of approximately $1 million from FY 2002-03. • Increases in the number of stations, as well as increasing banking fees result in an increase to TVM Maintenance/Revenue Collection of $300 thousand, 13%. • Increases in the costs of Operating and Property Insurance premiums, $1.7 million, 56%. • Increases for costs paid to the Burlington Northern Santa Fe Railroad for increased operations on non-member owned rights -of -way, $281 thousand, 11%. • Increase in required reserves for the agency's Self Insurance Reserve (SIR) $600 thousand as approved by the Board of Directors. The following section describes each element of the Operating Budget. Revenues. No increases or adjustments to the fare structure are assumed in FY 2003-04. Metrolink fares were increased for the Fiscal Year beginning July 1, 2002, the third of three Board approved adjustments to the base fare structure of the agency. The policy of the agency has been to adjust the fare structure on a biannual basis in relatively small increments so as to avoid the imposition of large scale changes on our passengers, and allow the underlying fare revenue growth to more closely mirror the general level of price inflation in the Southern California area. Further, the budget does not assume a lasting impact on Revenue or Ridership from the recent increase in gasoline prices. In FY 2003-04, the agency is planning a reevaluation of the entire Fare Policy and the results, upon approval, are expected to be incorporated into the FY 2004-05 Budget preparation. See Table 3.5 Miscellaneous revenues include fees for dispatching freight, Amtrak Intercity and NCTD Coaster trains, and marketing revenues principally from sponsorship activities. Table 3.6 shows the Dispatching Revenues from FY 2001-02 through FY 2003-04. While not included in the budget amount, each year, actual Miscellaneous Revenues also include interest on fares and other funds received in advance for operations and capital projects. Maintenance -of -way revenues are described in Section 3.8. The following section details expenses shown in Table 3.4. 4/7/2003, 9:57 AM 34 49 TABLE 3.5 FY2003.04 Ridership/F are R ev enue F orecast San Bemardino Weekday Saturday Sunday Ventura County Antelope Valley Weekday Saturday Riverside Weekday Saturday Orange County IEOC 91 Totals Weekday Saturday Sun da 10,150 10,077 10,048 3,000 2,841 2,944 1,700 1,508 1,527 3,544 3,681 3,650 5,850 5,749 5,999 2,000 1,650 1,746 4,600 4,249 4,372 6,139 5,467 5,459 3,200 3,074 3,127 800 1,456 1,473 34,283 33,753 34,128 5,000 4,491 4,690 1. 700 1,508 1,527 10,256 3,077 1,527 3,650 6,209 1,794 4,412 5,514 3,300 1,620 34,959 4,871 1.527 2.06% 4.53% 0.00 % 1 .04% 2 .56% -10 .17 % 0.00 % 2.98% 3.50 % 6 .14% 2 .72% -10.31% 0.91% -4.10% 1.00% -10 .18% 5.53% 3.13% 10.00% 102. 47% 2.44% 1.97% 3.85% -2.59% 0.00% -10.17% 4.80 3.65 3.90 4.76 4.02 4 .48 4.76 4.02 4.48 4 .10 4.16 4 .16 4.00 3 .79 3.79 3.15 3.47 3.47 4 .95 5 .26 5.26 4 .85 5 .28 5 .28 4.80 5.28 5.28 4 .50 3.47 3.47 4/5/2003 1:52 PM 11,685,801 12,522,221 12,116,226 523,487 573,920 616,274 321,040 347,497 355,887 3,743,829 3,734,747 3,844,312 5,066,634 6,014,367 5,770,828 271,273 330,201 316,344 5,518,504 5,852,442 5,814,238 31,987 6,825,878 7,652,443 7,301,538 3,455,163 3,947,892 4,180,196 146,127 925,287 1,293,970 36,441,937 40,649,401 40,356,646 826,747 904,121 932,619 321,040 347,497 355,887 WV: ....a -Z:74 '04'4' I'SM;s. O ri 901'L T!] C :44:000.1. 12,592,146 3.93 % 0.56 % 614,060 -0 .36 % 6.99 % 355,323 -0.16 % 2 .25% 3,917,279 6,071,085 310,227 5,986,272 7,508,606 4,494,724 1,450,3 89 42,020,502 924,287 355,323 1.90% 4.89% 2.96% 2.29% 2.84% -1.88% 7.52% 13 .85% 12 .09% 56.75% 4 .12% 3.37% -0 .89% 2 .23% -0.16% 2.25% 5.20% 0.94 % -1.93% -6.05 % l.a;n,11��,tF,nr;ar: I fy04 forecast-latest .xls SCRRA FY 2003-04 BUDGET TABLE 3.6 FY03-04 MISCELLANEOUS OPERATING REVENUES Itorak Amtrak Intercity Coast & Saugus Shared Use (UPRR/SPTC) East Bank Joint Facility (UPRR/SPTC) Mission Tower (UPRR/SPTC) San Diego & Olive Subdivision Shared Use (BNSF) Pasadena Subdivision Shared Use (BNSF) North County Transit District (NCTD) Marketing Reveunues Amtrak TVM Maintanance 1,575,477 1,642,678 1,642,678 256,920 256,920 256,920 86,728 86,973 89,325 185,335 193,722 198,960 45,813 57,882 48,325 32,652 43,312 44,483 319,810 330,977 339,927 35,000 147,500 I 35,000 125,000 4.27% 0.00% 2-99% 735% 5.48% 36.23% 6.29% 0.00% 0.00% 0.00% 2.70% 2.70% -16.51% 2.70% 2.70% -76.27%, 4/4/2003 9:10 PM 51 DISP-MOWXLS-Disp-Mktg SCRRA FY 2003-04 Budget Train Operations. Amtrak provides train operations $17.8 million for FY 2002-03, which represents an 8% increase from the FY 2002-03 Budget. This estimate includes an increase to accommodate the new services as referenced above. Of the total Operations expense, $72 thousand is attributable to the costs FY 2003-04 increases in service given the anticipated schedule start dates. The contingency for Train Operations is set at $75,000. Equipment Maintenance. The budget for FY 2002-03 was $16.5 million, and the request for FY 2003-04 is $15.7 million, a decrease of 5%. Costs for FY 2003-04 are expected to decrease as a result of the implementation of a new maintenance contract which realized significant savings over previous rates and terms. The contingency for Equipment Maintenance in FY 2003- 04 is set at $75,000 compared to $100,000 in previous years. Fuel. Fuel usage of approximately 5.3 million gallons per year is based on the projected consumption levels assumed in the proposed schedule. In FY 2003-04, fuel prices are assumed to stabilize over the course of the year to an average cost $1.05 per gallon. An average of $1.00 per gallon was assumed for FY 2002-03 and the resulting projection of $5.6 million for the year is a 9% increase from the Budget for FY 2002-03. Non -Scheduled Rolling Stock Repairs. This item is a contingency line item for repairs to accommodate medium scaled unforeseen damage to rolling stock. The amount requested for FY 2003-04 is $350,000 as compared to $400,000 in FY 2002-03. Operating Facilities Maintenance. This function is responsible for cleaning, maintenance, and hazardous materials compliance at the Central Maintenance Facility and other outlying SCRRA facilities. The budget fully incorporates the utilization of 4 converted Maintenance Technicians from contractor staff to permanent SCRRA positions at an overall savings to the agency. For FY 2003-04, the budget of $1.0 million represents a 1.5% decline from the FY 2002-03 budget. Other Operating Train Services. This budget includes a number of miscellaneous items directly related to operating the rail system. Weather data forecast and earthquake reporting services, publications, uniforms, emergency bus services, and FRA required training are all items considered in this category. Total expenditures are $145 thousand, a decrease of 28% from the FY 2002-03 Budget as a result of transferring certain Right -Of -Way worker training expenses to Maintenance of Way. Security - Sheriff. This line item shows an increase of 3% over the FY 2002-03 primarily as a result contractual costs increases. Security - Guards. The amount proposed for FY 2003-04 is a 2% decrease from the FY 2002- 03 level. The FY 2002-03 Budget assumed the costs of security services would raise significantly in the wake of the attack on the United States on September 11, 2001. Final results to the agency were less than anticipated in the year leading to a more moderated rate of growth in FY 2003-04 Supplemental Additional Security. This program is funded through an increment on fare 4/7/2003, 9:57 AM 37 52 SCRRA FY 2003-04 Budget revenues implemented in FY 2002-03. These funds are to provide for increased operational security, special upgrades to agency facilities and prevention of external threat incidents including the change in national security status as identified by the U.S. Justice Department. It is the intent of the agency to bring a comprehensive program to the Board for approval prior to the internal authorization to expend funds. Public Safety Program. The program declines by 2% from FY 2001-02 and includes American Public Transportation Association (APTA) and Federal Railroad Administration (FRA) requirements, continuation of the successful police and fire officer education train series, continuation of the "Don't Pick a Fight With a Heavyweight" campaign (including a community outreach event in each county), public information and school education campaigns, and safety and incident response training for staff and contractors. Passenger Relations. An 2.5% decrease is projected over the FY 2002-03 Budget for passenger relations and telephone information services. Funds are allocated to provide for the continuation of the Station Call Box project, the continuation of contracted Telephone Information Services, the implementation of the Customer Promise program in which the SCRRA will guarantee to passengers the ability to reach their final destination, and other minor customer service related expenses. In order to accommodate increased costs in other areas of the budget, discretionary costs in this program were constrained to the degree possible. Holiday Trains. The amount projected for the holiday trains in FY 2003-04 is a decrease of 6% from the FY 2002-03 Budget. The budget anticipates labor charges by Bombardier in FY 2003- 04 for support at the CMF to decorate the train., the costs of actual train operations, and the associated community outreach and support costs. There is also the expectation that opportunities will be sought to provide sponsored offsetting revenue, including a return of previous program sponsors and the addition of more through extensive community outreach. Ticket Vending Machine (TVM) Maintenance/Revenue Collection. This item includes TVM and validator maintenance, revenue collection, ticket stock, replacement of destination and ticket type strips in the TVMs, fare/zone change programming, and merchant fees for credit and debit card usage. This line item increases $293 thousand, 13% from the FY 2002-03 Budget primarily due to the addition of new stations and the associated increase in the numbers of machines requiring maintenance and increased Revenue Collection, an increase in the underlying contracted rate of the primary maintenance vendor, and an increase in the fees charged by the agency's bank. Marketing. There is a decrease of 9% compared with the FY 2002-03 Budget. This line item includes market research & analysis, advertising, promotions, special events, sales, merchandising, and channel marketing. For the FY 2003-04 Budget, programs providing targeted market research, expanded efforts highlighting the agency's Rail 2 Rail program, and additional programs for the corporate and general markets. 4/7/2003, 9:57 AM 38 53 SCRRA FY 2003-04 Budget Media/External Relations. There is a decrease of 3% compared with the FY 2002-03 Budget. This line item includes media and public relations, community relations, and web site maintenance and programming, and the production of the agency's printed schedules and Ride Guides. Also included are outreach activities with Station Cities including special events and the increased development of partnerships with Strategic Stakeholders. Utilities/Leases. Utility and lease costs are estimated at current monthly average costs and are expected to increase 2% from than the FY 2002-03 Budget. Growth has been moderated as result of a substantial decline in the costs of long distance telephone expenses to the agency through the anticipated implementation of a new service contract The agency otherwise expects current, non - fuel, energy related trends to continue with minor moderation. Additional lease costs for transmitter and other locations are assumed in outlying areas. Transfers to. Other Operators. These transfers represent agreements between the SCRRA and other transit operators to allow Metrolink passengers a convenience of transfer to connecting transit. Revenue transfers to other transit operators show an 11% increase over the budget for FY 2002-03 due to the projected ridership and new agreements with additional operators. Included in the program is $250,000 additional funds from the LACMTA to facilitate the implmentation of its "Easy Pass" program throughout Los Angeles County. Amtrak Transfers. These funds represent the gross costs to the agency of the "Rail 2 Rail" program. The SCRRA, Amtrak, and CALTRANS agreed to work together to allow passengers, on those lines where complementary service exists, holding valid Metrolink monthly passes or Amtrak tickets, to choose the service provider most convenient to their travel needs. Reimbursements have been negotiated based on a sliding scale determined by passenger counts and have been capped at the fully budgeted amount. This service has exceeded all initial budget expectations and has led to an increase in agency fare revenues, increased ridership on Amtrak's Pacific Surfrider corridor service, and has relieved overcrowding on several peak period Orange County Line trains. Station Maintenance. This item is decreased by 11% from the FY 2002-03 Budget. The reduction is principally the result of a previously negotiated reduction in the rate the SCRRA pays for shared maintenance at Los Angeles Union Station as a result of the anticipated opening of the LACMTA's Gold Line light rail project This item also includes maintenance of station equipment, signs, display cases, and public address/changeable message signs (PA/CMS), and LAUS platform maintenance. Rail Agreements. This line item represents payments to freight railroads, the Union Pacific and the Burlington Northern Santa Fe, for dispatching and other operating related services over property owned by these railroads. The amount budgeted represents an 11% increase from FY 2002-03 due to increases in as a result of new service enhancements discussed above, as well as contractually required indexed increases. 4/7/2003, 9:57 AM 39 54 SCRRA FY 2003-04 Budget Maintenance of Way -Line Segments. This line item is discussed in Section 3.8. Maintenance of Way - Extra -ordinary Maintenance. This item is discussed in Section 3.8. Salaries and Fringe Benefits. Salaries and fringe benefits are forecast based on the actual salary rate of each position charging directly to the Operations Budget, and assumes a fringe benefit additive of 52% (SCRRA's actual experience with SCRRA employees and an increase from 48% in the FY 2002-03 Budget). A 3% pool is assumed and included for merit increases, a decrease of 1% from FY 2002-03. A shift in staff costs from Ambassadors to other Passenger Services positions results in additional increases. Additional increases result from the reallocation of labor resources among the various SCRRA modes of output. The agency has attempted to significantly improve its time and record keeping practices over the past two fiscal years. The estimates in the budget currently reflect this more accurate information. Ambassadors. Ambassador staff represent a principal point of contact for Metrolink customers with the SCRRA. Assigned to stations throughout the agency's service area, costs are declining as a result of a decision to freeze the hiring of 3 currently vacant part-time positions in light of other resource allocation requirements of the agency. Direct Non -Labor Costs. Costs included in this line include Direct Non -allocated MIS expenses including programming and maintenance of the agency's Train Management and Inventory System software, Board of Directors' per diem, Travel and Lodging expenses of operating departments, and additional minor miscellaneous expenses. These costs are expected to decrease 10% from the FY 2002-03 budget as the result of a significant reduction in all discretionary areas. Travel and training have been reduced and will be restricted to essential costs only, and each Director and Manager has been instructed to, whenever possible, substitute lower costs alternatives for ordinary administrative functions. Allocated Overhead. Staff charging practices changed in FY 2000-01 to accommodate a new standardized methodology of allocating overhead costs. As a result of an increase in the percentage of staff costs being charged to Train Operations, a higher rate of funds are being transferred. These have been offset by an ahnost equal reduction in allocations to the agency's MOW program. Professional Services. Professional Services includes contracted services for legal and legislative advocate representatives; development of the Strategic Plan; System Safety Plan and related operating plans; performance audit of operators; feeder bus coordination; equipment engineering assistance; signage design; and other minor items. Overall, Professional Services are projected to increase 9% over the FY 2002-03 Budget, due to the initiation of a program to recalculate and validate the agency's methodology for passenger counting and other operational statistics as required by the National Transit Database (NTD) reporting requirements. Contingency. This line item is traditionally budgeted at $500,000 and is included to be utilized under authority of the Chief Executive Officer to deflect any unanticipated increase in expenses 4/7/2003, 9:57 AM 40 55 SCRRA FY 2003-04 Budget so as to avoid unnecessary increases to member agency subsidies in the event short term negative expense impacts are realized. Insurance. Overall, this item is projected to increase 54% compared with the FY 2002-03 Budget. Premiums for Operating Liability and Property Damages are projected to increase by 56%, and Claims Administration is assumed to increase 9%. Claims costs are budgeted at the payout estimates plus the level of Board approved increases in reserves to fund the agency's Self Insurance Reserve (SIR) requirements. Combined, these funds are requested at $1.4 million , an increase of $600 thousand, equally divided among claims payments and reserve increases. 3.7 Summary of Revenue and Expenses by Member Agency Table 17 provides the FY 2003-04 Metrolink Operating Budget by member agency shares. Total local subsidies increase 6.5% over the FY 2002-03 Budget and are expected to equal $48.7 million. LACMTA increases by 7.1%, VCTC shows an increase of 7.9%, SANBAG is increased 9.9%, RCTC's subsidy increases 0.9% and OCTA is expected to increase 4.1% 4/7/2003, 9:57 AM 41 56 SCRRA FY 2003-04 Budget TABLE 3.7 OPERATING SUBSIDY ALLOCATION BY COUNTY ($000s) Expenses Train Mile Allocation Base Allocation Direct Charge Maintenance -of -Way Revenues Gross Farebox Other Operating Maintenance -of -Way BASE ALLOCATION EXPENSES Equipment Maintenance Non -Scheduled Rolling Stock Repairs Operating Facilities Maintenance Other Operating Train Services Security - Sheriffs & Guards Public Safety Program Holiday Train TVM Maintenance/Revenue Collection Stations & Information Services DIRECT CHARGE EXPENSES Dispatching Rail Agreements $23,123.6 49,946.4 10,808.7 19,379.5 43,300.1 2,780.6 8,488.1 45,7123 2,977.2 6.5% $13,211.7 28,188.2 6,062.9 11,268.9 23,383.1 1,440.4 5,207.8 26,790.2 1,910.2 7.1% Fuel TRAIN MILE EXPENSES Train Operations (Non -Dispatching) $4,419.7 8,275.0 2,237.7 4,431.9 8,312.4 845.9 1,910.2 7,971.4 324.4 4.1% $1,750.9 3,784.9 848.9 202.2 3,492.8 3,029.9 26.5 0.9% Passenger Relations Marketing Media & External Communications Utilities/Leases Station Maintenance Staff Costs (Excluding Ambassador Labor) Professional Services Insurance $2,795.2 6,506.6 1,096.9 2,373.1 6,747.9 97.5 896.6 4,577.3 452.4 9.9% Transfers to Other Operators Ambassador Labor (Included under Staff Salaries) $946.1 3,191.8 562.3 1,103.4 1,364.0 358.9 473.6 3,343.4 263.6 7.9% Budge104-New Servicexls-Allocate 4/4/2003 8:56 PM 57 SCRRA FY 2003-04 Budget 3.8 Maintenance -of -Way Budget Assumptions This section provides the assumptions used to project revenues and expenses for the Maintenance -of -Way (MOW) portion of the Operating Budget. Over long periods, the expenses under a capital renovation program and ordinary maintenance budgets are somewhat interchangeable. Because the most economical methods of replacement of railroad elements (rail, ties, crossings, etc.) are through large specialized operations, railroad owners usually arrange for periodic replacement of elements using capital budgets. Under one extreme maintenance philosophy, a railroad owner may elect to continually replace worn elements using ordinary maintenance forces. In this scenario, the property is kept in excellent condition and there is no need for a Rehabilitation/Renovation capital program. However, total operating expenses are very high. The other extreme is to limit ordinary maintenance to little more than legally required inspections and to repair what breaks, counting on future expenditures in Rehabilitation/Renovation programs to refresh the condition of the property. This scenario results in reduction of speed and quality of operations as the maintenance level declines; however, ordinary maintenance expenditures are minimized. The recommended MOW philosophy of SCRRA is to perform ordinary maintenance sufficient to prevent any loss of service quality and to budget for Rehabilitation/Renovation at sufficient intervals to prevent the needed repairs/replacements from overwhelming the ordinary MOW budget. This philosophy is practiced by all of the successful freight railroads on their main routes. Conditions and Trends in the MOW Budget Current MOW programs are developed annually to maintain the tracks in their original condition. The factors listed below increase the MOW budget as compared to the budgets of the prior owners: + Higher standards for maintenance • Signal problem response time • Right-of-way and crossing response to community • No tolerance for speed reductions • No interference with train movements + More frequent trains/less work time/overtime for many tasks + Unforeseen expenses related to signals and storm damage + Some capital work not completed • Tunnel rehabilitation • Some old rail • Some old interlockings (Allen, First St., Ninth St.) + Right-of-way security issues • Graffiti • Trash dumping 4/7/2003, 9:57 AM 43 58 SCRRA FY 2003-04 Budget • Vandalism to track and signals Actions that may eventually reduce the MOW expenses include: Completion of Rehabilitation/Renovation projects Improvements to right-of-way security • Fencing • Law enforcement (SCRRA and community) • Signage Acquisition of maintenance site(s) to avoid rents and reduce travel time MOW Revenues and Expenses Table 3.8 provides maintenance -of -way revenues received from the freight railroads and Amtrak Intercity and includes revenues for operating and non -operating lines. Maintenance -of -way revenues were $7.9 million in FY 2001-02; $8.3 million in the FY 2002-03 Budget and the projection for FY 2003-04 is $8.5 million, an increase of 3%. Maintenance -of -way revenues are estimated from prior agreements and revenues from the freight railroads are increased by the railroad index, 2.7% and charged based on traffic on the lines. Amtrak Intercity revenues, per agreement, are increased by the CPI (3%). However revenues from Amtrak Intercity services are expected to be reduced as Amtrak did not initiate Los Angele to Las Vegas service as had been anticipated in the FY 2002-03 Budget. These funds have not been included in FY 2003-04. Revenues on the East Bank Joint Facility (East Bank of the Los Angeles River) are related to SCRRA's expenditures in this segment and vary from year to year depending upon both maintenance and capital work. Since FY 1997-98, the SCRRA has had an arrangement to exchange MOW revenues for an equal amount of Orange County Gas Tax Funds. These funds are budgeted outside the ordinary MOW budget. Table 3.9 provides the projection of Maintenance -of -Way Revenues, Subsidy and Expenditure by line and by county for FY 2003-04. Table 3.10 provides a summary of the projection of Maintenance -of -Way Expense Detail for FY 2003-04 by Line Segment/Territory and compares these projections to FY 2002-03 Budget. The maintenance category detail provided in Table 3.10 includes the following line items: • Track - payments to the maintenance -of -way contractor for projection of labor on inspections/repair of track. • Signal & Communications - payments to the signal and communications contractor for projection of labor on inspections/repair of signal and communication systems. * Structures- payments to the maintenance -of -way contractor for projection of labor on inspections/repair of bridges, tunnels and other structures. • Procurement — payments for items needed in repair of track, signals, communications, or structures which are allocated to segments and counties on the basis of track -miles. 4/7/2003, 9:57 AM 44 59 SCRRA FY 2003-04 BUDGET TABLE 3.8 MAINTENANCE -OF -WAY REVENUE Amtrak Intercity LAUS Rail Yard Operations & Maintenance (Amtrak) (1) Azusa Branch Shared Use (UPRR/SPTC) Baldwin Park Branch Shared Use (UPRR/SPTC) Coast & Saugus Shared Use (UPRRJSPTC) East Bank Joint Facility (UPRR/SPTC) Mission Tower (UPRR/SPTC) San Diego & Olive Subdivision Shared Use (BNSF) Pasadena Subdivision Shared Use (BNSF) State Grade Crossing (CPUC) (1) FY02-03 Budget amount was under budgeted. 1,012,363 188,617 81,084 175,997 2,700,086 733,546 77,278 1,059,406 1,564,324 319,102 1,177,547 123,205 76,519 175,647 2,740,562 806,575 122,821 1,102,301 1,627,670 309,405 1,099,765 8.63% -6.61% 181,347 -3.85% 47.19% 78,588 -3.08% 2.70% 180,395 230% 2.70% 2,871,902 6.36% 4.79% 828,381 12.93% 2.70% 126,142 63.23% 2.70% 1,132,102 6.86% 2.70% 1,671,674 6.86% 2.70% 317,770 -0.42% _ 2.70% 4/4/2003 9:36 PM 60 DISP-MOW.XLS-MOW SCRRA FY 2003-04 Budget TABLE 3.9 PROPOSED FY 2003-04 MAINTENANCE -OF -WAY EXPENDITURES Revenue Forecast Allocation Cl�'Wr„r;��C''+ . J In ? _ 1,0 "� t!�Y ' -+r `."" .L':3 te _ •,o- kr, 17=�ik*ttt �'". 1 t t il.W n � , r .: v'�.."� ..l''J-�• i i . , mtlat Operating Lines 7,494,535 4,280,021 1,910,150 - 830,802 473,562 LA - San Bernardino 1,090,008 259,206 - - 830,802 - LA - Ventura (Burbank let to Moorpark) 1,391,193 917,631 - - - 473,562 LA -Lancaster 1,956,147 1,956,147 - - -• Fullerton - San Diego County Line 1,793,589 - 1,793,589 - - - Olive Subdivision 116,561 - 116,561 - - - Riverside Layover Facility - - - - - - River Corridor 1,147,037 1,147,037 - - - - Extra -Ordinary Maintenance - - - - - (Derailments, Storm Damage) Non -Operating Lines 993,531 927,777 - - 65,754 - Sierra Madre - Claremont (Pasadena Sub) 927,777 927,777 - - - - Baldwin Park Branch (San Bernardino Co.) 65,754 - - - 65,754 - `, ^.,+ .. ' {.i�. c. ,= ,1 '! . .� r [.. a.. r. M � �ai3°'r'7�`- 1� !..a` Y.. ,y.tS": i e.o Y•' 8g,tos ,, y -_. =+[F3.. Net Suhsidv .Alioeation xipp-��'Y' �;,�•-�,, +uN`v�.; 'lYlj y.t M i'SC- �� ra'1 t �� r� ; 1. J11. �f' L -a .l• - 4A ..� k +r' ' `}P-:'Y'.h a� r � r � k.;l dt � I. '� t � b '{ }� � .� .r y �• r.iR, ""- ' ✓ �i��1 •}� Operating Lines LA - San Bernardino (1) LA - Ventura (Burbank Jct to Moorpark) LA -Lancaster Fullerton - San Diego County Line Olive Subdivision Riverside Layover Facility (3) River Corridor (4) Extra -Ordinary Maintenance (5) (Derailments, Storm Damage) Non -Operating Lines Sierra Madre - Claremont (Pasadena Sub) Baldwin Park Branch (San Bernardino Co.) - (2) 10,769,703 2,710,594 1,430,815 2,423,394 1,872,325 230,210 75,588 1,526,777 500,000 121,714 62,208 59,506 5,998,924 1,582,987 943,766 2,423,394 - - 45,844 725,219 277,714 62,208 62,208 - 2,521,720 - - - 1,872,325 230,210 - 302,302 116,884 - - - 202,235 - - - - I - 17,385 169,472 15,378 - - - 1,416,989 1,127,607 - - - - 12,359 219,856 57,167 59,506 - 59,506 629,835 - 487,049 - - - 109,928 32,858 - - - ,i - �.-- .s it r. .•, , ..n 4 a•, s ..}. ° ! ,� E ;.`r+i, rY lt7 ��: cww...' b,� "•r � ,. .a d =�.`• '3�_ Total Expenditure Forecast f rr r�t- 27 4 r F - a t Q k l••l _ t1 _- • i � iL ) ,F. . ti`? s,'i� '' f,�rv .. F • `ten *`�•=y • ;Y vim. ^` Operating Linea 18,264,238 10,278,945 4,431,870 202,235 2,247,791 1,103,397 LA -San Bernardino 3,800,602 1,842,193 - - 1,958,409 - LA - Ventura (Burbank Jct to Moorpark) 2,822,008 1,861,397 - - - 960,611 LA -Lancaster 4,379,541 4,379,541 - - - - Fullerton - San Diego County Line 3,665,914 - 3,665,914 - - - Olive Subdivision 346,771 - 346,771 - - - Riverside Layover Facility 75,588 45,844 - 17,385 12,359 - River Corridor 2,673,814 1,872,256 302,302 169,472 219,856 109,928 Extra -Ordinary Maintenance 500,000 277,714 116,884 15,378 57,167 32,858 (Derailments, Storer Damage) Non -Operating Lines 1,115,245 989,985 - - 125,260 - Sierra Madre - Claremont (Pasadena Sub) 989,985 989,985 - - - - Baldwin Park Branch (San Bernardino Co.) 125,260 - - - 125,260 - (1) Split of MoW net subsidy is by track miles (58.4% LACMTA and 41.6% SANBAG). Split MoW revenue forecast is by county specific revenues. (2) Split of MoW net subsidy and MoW revenue forecast is by track miles (65.96% LACMTA and 34.04% VCTC)_ (3) Split is by route miles (60.65% LACMTA, 23.00% RCIC, and 1635% SANBAG). (4) Split is assumed All Share (473% LACMTA, 19.8% OCTA, 14.4% SANBAG, 7.2% VCTC, and 11.1% RCTC) of cost in excess of revenues. (5) Split is assumed All Share for deraihnents ($100,000) and percent of route miles owned (57.5535% LACMTA, 24.2709% OCTA, 10.6918% SANBAG, 6.4144% VCTC, L0694% RCTC) for storm damage, gate knockdowns, and vandalism. 4/412003 9:02 PM 61 Input04-New Servicexls-MOW SCRRA FY 2003-04 Budget Southern California Regional Rail Authority FY 03/04 Proposed Maintenance -of -Way Budget Variance to FY 02/03 Budget & Forecast Track Signal & Communications Structures Procurement Other A ency Costs Track Signal & Communications Structures Procurement Other Agency Costs Track Signal & Communications Structures Procurement Other Agency Costs Track Signal & Communications Structures Procurement Other Agency Costs Track Signal & Communications Structures Procurement Other Agenc Costs Track $16,704 $22,382 $5,678 Signal & Communications $8,018 $11,066 $3,048 Structures $4,054 $4,356 $302 Procurement $3,823 $4,349 $526 Other $12,328 $12,676 $348 A Costs $19,638 $20,758 $1,120 $723,947 $1,194,009 $175,957 $165,909 $594,092 $852,287 $765,5I2 $810,082 8144,882 $132,378 $437,257 $641,505 $1,119,143 $1,182,383 $236,510 $218,772 $808,048 $1,085,324 $919,375 $983,264 $194,607 $183,494 $647,701 $942,621 $89,002 $121,971 $14,866 $14,017 $49,065 872,006 $848,115 $1,327,656 $156,818 $156,568 $564,140 $747,305 $833,731 $775,917 $116,238 $123,869 $418,330 $553,923 $1,132,049 $1,193,119 $191,437 $198,316 $752,341 $912,280 $999,337 $990,919 $165,071 $164,809 $559,142 $786,637 $95,555 $118,212 $12,610 $12,590 $47,715 $60,090 $124,168 $133,647 ($19,139) ($9,341) (829,952) (8104,982) $68,219 ($34,165) (828,644) (88,508) ($18,927) ($87,582) atikliAMA $12,906 $10,736 ($45,073) ($20,457) ($55,708) (5173,044) $79,962 $7,655 ($29,536) ($18,685) ($88,560) ($155,984) 1 d $6,553 ($3,759) ($2,2-56) ($1,427) ($1,350) 511,916 4/5200310:42 AM 62 FY04Mow-Rev3.xds Line SCRRA FY 2003-04 Budget Southern California Regional Rail Authority FY 03/04 Proposed Maintenance -of -Way Budget Variance to FY 02/03 Budget & Forecast tl t. i 'I i + 4. "�1'� _' .:r4'$Sr + � ; f iJ ." ,.- ,. tl is 4.`. k .. L. L'I, L r jd[i� ?4; j i.- `%Ea�¢' .i} - • .rn . rJ 3 ' +y i�^' t,;--7,-77.7-77----Tr- 1 +_Z } !' • !t 'M' 1I'i. r. 'M+ ?? :(d 4. r ^, , 5 '' u` `t r 5VP xM. : A5 �3z ''� �i�" .. l 'y, wpm : lu' � .cj" s3•�{R"� "nY Track Signal & Communications Structures Procurement Other Agency Costs $572,910 $1,420,594 $72,167 $68,046 $232,641 $349,,5p5�6gj $608,090 $1,454,840 $61,214 $61,117 $196,842 $291,711 $35,180 $34,246 ($10,953) ($6,929) ($35,798) ($57,845) y�y 1 i IF SS i � $j1�'. f�i3K .y-- '3.. atkei J - V�! +fiK'cria y i..',, .. , (Derailments, Storrs Damage, Gate Knockdowns, Vandalism) 1. 115 t5 ($it?[),024) an„t?lrcre;# ng c ,`.-.. .. . 21,269 �. " x __ `' EL '=S{,Zg •�-1 'J,_ .. t TM . Track Signal &Communications Structures Procurement Other Agency Costs $222,352 $312,064 $54,058 $50,970 $189,884 $261,839 $203,454 $295,365 $45,853 $45,780 $181,023 $218,510 ($18,898) ($16,699) ($8,205) ($5,190) ($8,861) ($43,329) .,�, �i ..r_R _'[.._M} '. �` �� +, _a,. F byO A + �,� - 403"y, y�{'' Ae � rr.fa Fly t+. am IJ ?0 �• ' .115,.7 }tlK�4.�. ��. ,r: , ��_ `. y`�-�'�,Y�� Track Signal & Communications Structures Procurement Other Agency Costs $20,879 $56,867 $5,135 $4,842 $17,505 $24,874 $27,686 $49,974 $4,356 $4,349 $18,137 $20,758 $6,807 ($6,893) ($779) ($493) $632 ($4,116) __rP _�i � 1t� Fn.� __�.�. Y.� _�. ..�.1 e... 1....-��..i .�..:}�__f �tiru... a'4 i �•;-3 sf E� � f' v+Y �.C�. _ �� r�l..'.'_V.'- _.s r •.J.ua. . -�-.� �1 . f j�` Track Signal & Communications Structures Procurement Other (1) Extra -Ordinary Maintenance Agency Costs 54,449,824 $6,089,252 $902,236 $842,251 $2,988,521 $500,000 $4,249,650 $4,770,399 $6,217,068 $757,952 $771,746 $2,750,344 $500,000 $3,611,974 $320,575 $127,816 ($144,284) ($70,505) ($238,177) $0 (5637,676) 4/5/2003 10:42 AM FY04M, w-Rev3.xls Line 63 SCRRA FY 2003-04 Budget Other - payments for vegetation control, vehicle /equipment expense, rail flaw detection, and engineering which are allocated to segments and counties on the basis of track -miles. • Agency Costs - SCRRA labor, overhead and non -labor costs allocated to the Maintenance -of - Way Budget that are allocated to segments and counties on the basis of track -miles. Included in the agency's pool of general engineering are funds for the purpose of conceptual engineering and capital planning to better identify scope and construction concerns prior to the submission of grant applications. MOW Projections by Line The FY 2003-04 MOW Budget is $19.4 million. This is 3% lower than the FY 2002-03 Budget. The decrease is primarily due to a stable maintenance environment, and a concerted effort by agency staff to maintain current levels without degrading the quality of operations. Non -direct maintenance expenses have been reduced in light of the overall resource constraints of the agency for the fiscal year. The average MOW cost per track -mile is calculated excluding Extra -Ordinary Maintenance and Agency Costs. For FY 2003-04, the average MOW cost is projected to be $46,125 per track -mile compared with $47,223 per track -mile budgeted in FY 2002-03. Some inflationary cost increases have been absorbed by economies associated with the improved maintenance condition of the property as a result of the agency's Renovation and Rehabilitation program. The features that make some lines higher or lower in cost than the SCRRA averages, or are changes from last year are summarized in the following list. The figures (+) and (-) show factors that drive the maintenance budget higher or lower. Los Angeles - San Bernardino Line. (2.5% increase from the FY 2002-03 Budget due to an increase in both Track and Signal Maintenance requirements.) The budget represents the basic maintenance force plus a surfacing cycle. Factors that affect MOW costs are: + Very high density of passenger train traffic + High density of road crossings + Some unresolved drainage issues + Assumption of Redlands First Mile - Capital rehabilitation still to be completed (1-10 Corridor work) - Light freight traffic Los Angeles - Ventura County Line. (4% decrease from the FY 2002-03 Budget.) The signal system on this line was renewed between 1991 and 1995, and the crossing, rail, and tie deficiencies of earlier years have been largely corrected by recent Rehabilitation/ Renovation work. Factors that affect MOW costs are: + High density of passenger train traffic (including weekends) + Deteriorated track/ties at selected locations + High density of road crossings + Moderately heavy freight traffic (affects curve rail) 4/7/2003, 9:57 AM 49 64