City of Ceres ● City of Hughson ● City of Modesto ● City of Newman ● City of Oakdale ● City of Patterson City of Riverbank ● City of Turlock ● City of Waterford ● County of Stanis laus

SOCIAL SERVICES TRANSPORTATION ADVISORY COUNCIL MEETING STANCOG BOARD ROOM 1111 I STREET, SUITE 308

MODESTO, CA TUESDAY, JANUARY 8, 2019

9:00 AM Committee Agendas and Minutes: Committee agendas, minutes and copies of items to be considered by the StanCOG Committee are available at least 72 hours prior to the meeting at the StanCOG offices located at 1111 “I” Street, Suite 308, Modesto, CA during normal business hours. The documents are also available on StanCOG’s website at www.stancog.org.

Materials related to an item on this Agenda submitted to the Committee after distribution of the agenda packet are available for public inspection at the address listed above during normal business hours. These documents are also available on StanCOG’s website, subject to staff’s ability to post the documents before the meeting.

Public Comment Period: Matters under the jurisdiction of the Committee, and not on the posted agenda, may be addressed by the general public at the beginning of the regular agenda and any off-agenda matters before the Committee for consideration. However, California law prohibits the Committee from taking action on any matter which is not on the posted agenda unless it is determined to be an emergency by the Committee. Any member of the public wishing to address the Committee during the “Public Comment” period will be limited to 5 minutes unless the Chair of the Committee grants a longer period of time. At a Special Meeting, members of the public may address the Board on any item on the Agenda at the time the item is considered by the Board.

Public Participation on a Matter on the Agenda: Please step to the podium at the time the agenda item is announced by the Chairperson. In order to ensure that interested parties have an opportunity to speak, any person addressing the Committee will be limited to a maximum of 5 minutes unless the Chair of the Committee grants a longer period of time.

Reasonable Accommodations: This Agenda shall be made available upon request in appropriate alternative formats to persons with a disability, as required by the Americans with Disabilities Act of 1990 (42 U.S.C. § 12132) and the Ralph M. Brown Act (California Government Code § 54954.2). Persons requesting a disability related modification or accommodation in order to participate in the meeting should contact Cindy Malekos at (209) 525-4600 during regular business hours at least 72 hours prior to the time of the meeting to enable StanCOG to make reasonable arrangements to ensure accessibility to this meeting.

Notice Regarding Non-English Speakers: StanCOG Committee meetings are conducted in English and translations to other languages is not provided. Anyone wishing to address the Committee is advised to have an interpreter or to contact Cindy Malekos at (209) 525-4600 during regular business hours at least 72 hours prior to the time of the meeting so that StanCOG can provide an interpreter.

Aviso con Respecto a Personas que no Hablan el Idioma de Inglés: Las reuniónes del los Comités del Consejo de Gobiernos de Stanislaus son conducidas en Inglés y traducciones a otros idiomas no son disponibles. Cualquier persona que desea dirigirse al Comité se le aconseja que traiga su propio intérprete o llame a Cindy Malekos al (209) 525-4600 durante horas de oficina regulares o a lo menos 72 horas antes de la reunión del Consejo de Gobiernos de Stanislaus, para proporcionarle con un intérprete.

AGENDA

1. CALL TO ORDER

2. ROLL CALL

3. PUBLIC COMMENTSThese matters may be presented only by interested persons in the audience. Discussion is limitedto five minutes or at the discretion of the Chair.

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4. CONSENT CALENDAR

A. Motion to Approve Social Services Transportation Advisory Council (SSTAC) Minutes of11/27/18.

5. UPCOMING PUBLIC HEARING

A. FY 2019/20 Unmet Transit Needs Analysis

6. DISCUSSION/ACTION ITEMS

A. Motion to Recommend Policy Board Accept by Resolution the FY 2017/18 Measure LAnnual Report

B. Motion to Recommend Policy Board Adopt by Resolution Senate Bill 903 ImplementationPolicies and Procedures

7. TRANSIT MANAGER/MOVE REPORTS

8. CALTRANS REPORT

9. EXECUTIVE DIRECTOR REPORT

10. MEMBER REPORTS

11. ADJOURNMENT

Next Regularly Scheduled SSTAC Meeting: February 5, 2019 (Tuesday) @ 9:00 am StanCOG Board Room 1111 I Street, Suite 308 Modesto, CA 95354

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CONSENT CALENDAR

3

SPECIAL SOCIAL SERVICES TRANSPORTATION ADVISORY COUNCIL (SSTAC) MEETING

StanCOG Board Room 1111 I Street, Suite 308

Modesto, CA Minutes of November 27, 2018 (Tuesday)

9:00 am

MEMBERS PRESENT: Denise Anderson (DRAIL); Lillian Castigliano (Commission on Aging); Stacie Morales (MOVE); Simona Rios (Catholic Charities)

ALSO PRESENT: Rosemary Martinez (City of Ceres/CAT); Darla Moen (Stanislaus County/StaRT); Angela Swanson (City of Modesto/MADAR); Wayne York (City of Turlock/Turlock Transit); Carla Alviso, Aric Barnett-Lynch, Arthur Chen, Elisabeth Hahn, Chris Jasper, Karen Kincy, Cindy Malekos, Melissa Molina, Stephanie Mora, Josephine Oshana, Edith Robles (StanCOG)

1. CALL TO ORDERChair Stacie Morales called the meeting to order at 9:03 a.m.

2. ROLL CALL

3. PUBLIC COMMENTS - None

4. CONSENT CALENDAR

A. Motion to Approve Social Services Transportation Advisory Council (SSTAC)Minutes of 10/30/18

* By Motion (Member Lillian Castigliano/Member Simona Rios), and unanimousvote, the Council approved the Consent Calendar.

5. PRESENTATION

A. Measure L Website Update

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Item 4A

Aric Barnett-Lynch stated that a new and improved Measure L website had been developed at http://stanislausmeasurel.com/, to increase public information and transparency. He provided a presentation featuring the many highlights of the website. A brief discussion followed, members provided suggestions and had their questions answered.

6. DISCUSSION/ACTION ITEMS

A. FY 2017/18 Measure L Annual ReportAric Barnett-Lynch provided a review of what would be featured in the FY 2017/18Measure L Annual Report.

Elisabeth Hahn stated that the FY 2017/18 Measure L Annual Report would befinalized by the end of December as required and would go to the Policy Board at theirJanuary meeting.

B. Motion to Recommend Policy Board Approve the Meeting Schedule for CalendarYear 2019Cindy Malekos stated that it was proposed that the Social Services TransportationAdvisory Council meetings continue to be held on the first Tuesday of the month at9:00 am, except for the January and September meeting dates which were changed dueto holiday or calendar conflicts.

* By Motion (Member Simona Rios/Member Lillian Castigliano), and unanimousvote, the Council recommended that the Policy Board approve the meeting schedulefor calendar year 2019.

C. FY 2019/20 Unmet Transit Needs Outreach ScheduleEdith Robles provided English and Spanish flyers for the Unmet Transit Needsoutreach workshops, and reviewed the dates, places and times. She stated the flyerswould be emailed to the members also, so that they could be shared. She alsoreminded them that the Unmet Transit Needs survey was still available on theStanCOG Facebook page and the website along with the outreach information. Shereported that there would be a public hearing at the January 16th Policy Board Meeting.A brief discussion followed and members’ questions were answered.

D. Affordable Housing and Sustainable Communities Final Guidelines and Notice ofFunding AvailabilityChris Jasper provided background on the Affordable Housing and SustainableCommunities (AHSC) which is a state funded program that provides fundingopportunities for affordable housing and sustainable infrastructure, and is administeredby the Strategic Growth Council (SGC). He reported that SGC had finalized theRound 4 Guidelines in late October and on November 1st they announced that theAHSA Program would have $395 million available for the program’s fourth cycle. Hestated that the application deadline was February 11, 2019. There was a discussion andmembers’ questions were answered.

7. TRANSIT MANAGERS/MOVE REPORTAngela Swanson with Modesto Area Dial-A-Ride (MADAR) reported that the due date forthe Request for Proposals (RFP) which had been previously released for MADAR

5

Operations might be delayed until January 2019 due to the holidays and problems some of the proposers were having in securing locations. She also stated they had staited a group of community outreach meetings and were also actively staiting their Title VI process for next year.

Darla Moen with Stanislaus Regional Transit (StaR T) repmted that their route and fare changes began on November 10th

. She also stated the they had put out a Request for Proposal for a software system for the buses.

Wayne York with Turlock Transit System repo1ted they had four new buses that would be in service within the next few weeks. He reviewed some upcoming ADA improvements being made to their bus stops to make them more accessible. He also repo1ted they had started their shmt-range transit plan process which would include several forms of public outreach. He stated they were moving forward with mobile ticketing and reviewed some of the benefits. He also stated that the new Turlock Transit Center should be open in January 2019.

Stacie Morales with MOVE repmted that November 1st marked one year since they were no longer under contract with Paratransit. She stated that they had completed their first audit and were waiting to hear back from the auditor. She also stated that they awarded the RFP for a Demand Study and Business Plan to McGuire Management Consultancy.

8. CAL TRANS REPORT - None

9. EXECUTIVE DIRECTOR'S REPORT Karen Kincy repmted the Policy Board had awarded the Transit Efficiency and Innovations Study contract to McGuire Management Consultancy.

10. MEMBER REPORTS Simona Rios with Catholic Charities repo1ted that they would be having their Open House on December 5th and would get the invitation mailed out to the members.

Denise Anderson with DRAIL provided information on their Advocacy Group.

Lillian Castigliano with Commission on Aging repo1ted that Supervisor Monteith, who was also a member on the Commission on Aging would be retiring on December 13th

. She also provided information regarding a newsletter for the Turlock Senior Center.

11. ADJOURNMENT Chair Stacie Morales adjourned the meeting at 9:57 a.m.

Next Regularly Scheduled SSTAC Meeting: January 8, 2019 (Tuesday) @ 9:00 am StanCOG Board Room 1111 I Street, Suite 308 Modesto, CA

Minutes Prepared By:

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UPCOMING

PUBLIC

HEARING

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TO: Social Services Transportaion Advisory Council Staff Report Public Hearing

FROM: Elisabeth Hahn, Principal Planner Edith Robles, Assistant Planner

DATE: December 20, 2018

SUBJECT: FY 2019/20 Unmet Transit Needs Analysis

Recommendation

Consider information presented.

Background

Each year, pursuant to the California Transportation Development Act, the Stanislaus Council of Governments (StanCOG), as the Regional Transportation Planning Agency (RTPA), identifies unmet transit needs that may exist in the Stanislaus region and presents the findings in an Unmet Transit Needs (UTN) Analysis Report.

The UTN assessment process requires that at least one public hearing be held in order to solicit comments on the unmet transit needs that may exist in the region and may be reasonable to meet by establishing or contracting for new public transportation or specialized transportation service or by expanding existing services. Input must also be solicited from transit disadvantaged and transit dependent populations.

During the months of December and January public outreach workshops were held at the following locations.

• Gladys Lemmons Senior Center, December 3, 2018

• Patterson Senior Center, December 11, 2018

• Modesto Senior Center December 12, 2018

• Ceres Community Center December 12, 2019

• Empire Library January 8, 2019

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Item 5A

Any transit needs that are identified during the UTN analysis process will be reviewed against the Policy Board’s adopted procedures and definitions for “unmet need” and “reasonable to meet.”

Discussion

This year, StanCOG will hold a Public Hearing at the StanCOG Policy Board meeting on Wednesday, January 16, 2019 at 6:00 pm for the purpose of soliciting comments on the unmet transit needs that may exist within StanCOG’s jurisdiction and that might be reasonable to meet by establishing or contracting for new public transportation or specialized transportation services or by expanding existing services.

Spanish translation services will be available for the public hearing.

In addition to the public hearing, comments may also be made through the Unmet Transit Needs Survey, which is available in English and Spanish translation and can be accessed through the following links:

https://www.surveymonkey.com/r/StanCOG2019UTN.

https://www.surveymonkey.com/r/StanCOG_SpanishUTN.

Should you have any questions regarding this staff report, please contact Edith Robles, Assistant Planner, at 209-525-4600 or via e-mail at unmettransitneeds@stancog.org.

Attachments:

1. FY 2019-20 Unmet Transit Needs Public Hearing Flyer (English & Spanish)

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Háganos llegar sus preguntas a:

Edith Robles, Técnico en Planificación Unmettransitneeds@stancog.org Calle “I” Nº1111, Suite 308 Modesto, CA, 95354 (209) 525-4891

http://www.stancog.org/unmet-transit-needs.shtm

https://www.surveymonkey.com/r/StanCOG2019UTN

https://www.surveymonkey.com/r/StanCOG_SpanishUTN

La Encuesta sobre Carencias de Transporte Públi-co Sin Remediar del StanCOG está disponible en

inglés y en español en el sitio:

AUDIENCIAS ABIERTAS SOBRE TRANSPORTE PÚBLICO

Miércoles, 16 de Enero, 2019 6:00pm

Sala del Directorio del StanCOG Calle “I” Nº1111, Suite 308

Modesto, CA, 95354

Habrá servicio de traducción al español

El transporte público

¿Cubre sus necesidades?

Comparta sus ideas sobre transporte con nosotros el

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Submit questions to:

Edith Robles, Planning Technician Unmettransitneeds@stancog.org 1111 I Street, Suite 308 Modesto, CA 95354 (209) 525-4891

http://www.stancog.org/unmet-transit-needs.shtm

https://www.surveymonkey.com/r/StanCOG2019UTN

https://www.surveymonkey.com/r/StanCOG_SpanishUTN

The StanCOG Unmet Transit Needs Survey (English and Spanish) is available at the following

website:

PUBLIC TRANSIT HEARINGS

Wednesday, January 16, 2019 6:00pm

StanCOG Policy Board 1111 I Street, Suite 308 Modesto, CA, 95354

Spanish translation services will be provided

Does public transit meet your needs? Share your transit ideas with us at the

public hearing listed below!

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DISCUSSION & ACTION ITEMS

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Recommendation

By Motion:

Recommend that the Policy Board accept by Resolution the FY 2017/18 Measure L Annual Report.

Background

Measure L is a 25-year ½ cent sales tax that was approved by Stanislaus County voters by an overwhelming 71.95% in November of 2016. Measure L provides funding for local transportation improvements including, but not limited to: fixing potholes and maintaining streets; improving emergency response; providing safe routes to schools; providing senior, veterans and disabled shuttle services; and improving safety and reducing traffic congestion on major transportation corridors. The tax revenues are deposited in a special fund and used solely for the transportation projects, improvements and programs described in StanCOG’s adopted Expenditure Plan.

Per Measure L Ordinance #16-01, Section 25, and as the Local Transportation Authority for Measure L, StanCOG is required to prepare an annual report within 180 days of the end of the fiscal year (June 30, 2018) identifying the actions and accomplishments of the Authority in meeting the adopted Expenditure Plan. StanCOG’s adopted Expenditure Plan and Measure L Ordinance are accessible via the following links.

http://stanislausmeasurel.com/wp-content/uploads/2018/11/Measure-L-Exp-Plan.pdf http://stanislausmeasurel.com/wp-content/uploads/2018/10/Measure-L-Ordinance.pdf

Discussion

For Fiscal Year 2017/18, Measure L funds were distributed to all jurisdictions for several projects. The majority of funds were allocated for Local Streets and Roads and one Regional Project: State Route 132 West Freeway/Expressway, Phase 1. The remaining funds were distributed for Traffic

TO: Social Services Transportation Advisory Council Staff Report Motion

FROM: Ted Tasiopoulos, Associate Planner Aric Barnett-Lynch, Executive Administrative Assistant

DATE: January 2, 2019

SUBJECT: FY 2017/18 Measure L Annual Report

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Item 6A

Management, Bike and Pedestrian, and Transit projects. Measure L actions and accomplishments for all jurisdictions are presented in the FY 2017/18 Measure L Annual Report. The FY 2017/18 Measure L Annual Report will be provided at the meeting.

This report is being presented for your review and recommended motion to the Policy Board to accept the FY 2017/18 Measure L Annual Report.

Should you have any questions regarding this staff report, please contact Rosa Park, Executive Director at 209-525-4600 or via e-mail at rpark@stancog.org.

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TO: Social Services Transportation Advisory Committee Staff Report Motion

FROM: Karen Kincy, Manager of Financial Services

DATE: December 18, 2018

SUBJECT: Senate Bill 903 Implementation Policies and Procedures

Recommendation

By Motion:

Recommend the Policy Board adopt a Resolution to approve Senate Bill (SB) 903 Implementation Policies and Procedures.

Background

StanCOG is the administrator of Transportation Development Act (TDA) funding for the region and recognizes the need to establish financial requirements to ensure the efficient use of public funding as they relate to Transportation Development Act expenditures.

In 1971, the Legislature enacted the Mills-Alquist-Deddeh Act, otherwise known as the TDA, which dedicated a statewide ¼-cent sales tax to local transportation. That 1/4 cent sales tax, now known as the Local Transportation Fund (LTF), generates over $1.5 billion annually primarily for public transit. Later, the Legislature created a second state-funding source for public transit under the TDA called the State Transit Assistance (STA) program. The STA program, which generates more than $400 million annually, is derived from the sales tax on diesel fuel and is distributed to local agencies based on population and transit operator revenues.

To be eligible to receive its full share of LTF, existing law requires a transit operator to meet a specified ratio of fare revenues to operating cost, called the farebox recovery ratio (FRR). Generally, existing law defines the minimum ratio necessary to receive all LTF funding as either 20% for urban operators, or 10% for operators in a non-urbanized area. If a transit operator fails to meet its specified FRR, existing law requires the Regional Transportation Planning Agency (RTPA), StanCOG, to withhold a percentage of the LTF equal to the percentage by which the operator missed its required ratio.

In the 2010 census, the population of the Stanislaus County exceeded the 500,000-population

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Item 6B

threshold in TDA law, thus requiring transit operators serving in the County to increase their FRRs by 10% (from 10% to 20%). As a result, despite attempts to optimize service, the four transit operators in the County- Ceres Area Transit (CAT), Modesto Area Express (MAX), Stanislaus Regional Transit (StaRT), and Turlock Transit, have struggled to meet their farebox recovery requirements, resulting in a lack of access to funding to maintain existing service. As the administrator of TDA funding for the region, StanCOG prioritizes the ability to ensure that operators are receiving their full allotment of funding necessary to deliver transit services to the region. StanCOG staff is responsible for collaborating with member agencies, including the county’s four transit operators – Ceres Area Transit (CAT), Modesto Area Express (MAX), Turlock Transit, and Stanislaus Regional Transit, which serves Stanislaus County with Fixed Route, Dial-A-Ride and Runabouts within the county. As such the Policy Board authorized state lobbyist, Gus Khouri to carry Senate Bill (SB) 903 to the California Legislature for consideration for a reduction to the required Fare Box Recover (FRR) for the Stanislaus Region. SB 903 (Cannella), Chapter 107, Statutes of 2018, was approved by the Governor on July 16, 2018 and was codified a Public Utilities Code section 99270.8. SB 903 provides county transit operators with a temporary reprieve through FY 2019-20 in meeting their farebox recovery requirements. Implementation of the bill necessitated the need for an implementation policy to allow Operators to request adjustments as needed for their individual systems. Discussion StanCOG staff, working collaboratively with the Transit Operators, has developed the SB 903 Implementation Policies and Procedures for the StanCOG Policy Board’s consideration. The policy identifies the authority granted by the legislature to allow the StanCOG Policy Board to consider an adjustment to the FRR of a given Transit Operator for the fiscal years FY 2018-19 and FY 2019-20. The policy addresses the need to maintain efforts to achieve the current performance measures set forth in Table 1 below:

Table 1 Stanislaus County Transit Operators

Ceres Area Transit, CAT (Urban Area Fixed Route) 20% Ceres Dial-A-Ride 10% Modesto Area Express MAX (Urban Area Fixed Route)1 20% Modesto Dial-A-Ride1 10% Turlock Transit (Urban Area Fixed Route) 20% Turlock Transit Dial-A-Ride 10% Stanislaus Regional Transit (StaRT) (Urban-Rural Blend) 15%

1. FRR is 20% for MAX and 10% for MADAR paratransit. Per PUC 99268.5(b), Modesto can calculate its FRR using these percentages separately or combine both for a 20% FRR.

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In accordance with SB 903 the Policy Board may grant the allowable adjustment of up to 5 percentage points from the fare box recovery ratios outlined in Table 2 below:

Table 2

Stanislaus County Transit Operators Ceres Area Transit, CAT (Urban Area Fixed Route) 15% Ceres Dial-A-Ride 10% Modesto Area Express MAX (Urban Area Fixed Route)1 15% Modesto Dial-A-Ride1 10% Turlock Transit (Urban Area Fixed Route) 15% Turlock Transit Dial-A-Ride 10% Stanislaus Regional Transit (StaRT) (Urban-Rural Blend) 10%

Both StanCOG Staff and the Transit Operators recognize the need for compliance with the performance measures and accountability to the state and the Policy Board when requesting an adjustment. To accurately represent documentation for such a request, it is necessary to provide verified calculations which are supported by each agency’s TDA Annual Audits. Therefore, requests for adjustments will be submitted and approved retroactively, once all required documentation is available as outlined in the policy:

To request an FRR adjustment an Operator shall submit the following:

• Completed Request Forms, attached as Exhibit A and Exhibit B, to thepolicy;

• An audited financial report for the applicable fiscal year, indicating thatthe Operator has not met the required FRR for the respective fiscal year;and

• A comprehensive report that demonstrates the Operator has evaluatedand/or implemented strategies for obtaining compliance with FRRrequirements, such as, but not limited to the following:

o reductions or realignments of low-performing routes;o reductions in operating hours in poor-performing periods;o passenger fare increases;o system efficiency improvements;o service enhancements intended to increase ridership;o efforts to increase local revenue; ando efforts to reduce operating costs.

• A detailed explanation of options and strategies being evaluated andconsidered by the Operator for future change to achieve fare recoveryratio for subsequent fiscal years. A timeline of when and how the

1. FRR is 15% for MAX and 10% for MADAR paratransit. Per PUC99268.5(b), Modesto can calculate its FRR using these percentagesseparately or combine both for a 15% FRR.

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options and strategies will be implemented must also be included. • All requests must be received no later than March 31st of the fiscal year

subsequent to which the Operator is seeking relief. Should you have any questions regarding this staff report, please contact Karen Kincy, Manager of Financial Services, at 209-525-4640 or via e-mail at kkincy@stancog.org. Attachments:

1. Draft Resolution 2. SB 903 Implementation Policies and Procedures

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STANISLAUS COUNCIL OF GOVERNMENTS RESOLUTION

ADOPTING SB 903 IMPLEMENTATION POLICIES & PROCEDURES

WHEREAS, the Stanislaus Council of Governments (StanCOG) is a Regional Transportation Planning Agency and a Metropolitan Planning Organization (MPO), pursuant to State and Federal designation; and

WHEREAS, on July 16, 2018 the legislature adopted Senate Bill 903 (SB 903), codified as Section 99270.8 of the Public Utilities Code, in order to provide transit operators within the County with relief relating to transportation and achievement of farebox recovery ratios; and

WHEREAS, SB 903 authorizes the Stanislaus Council of Governments, as the designated regional transportation planning agency, when determining if specified operators have met the requirements for claims for transit funds for the 2018-19 and 2019-20 fiscal years, to reduce the applicable ratio of fare revenues to operating costs by up to 5 percentage points from the ratio that was effective during the 2015-16 fiscal year; and

WHEREAS, the current fare recover ratios in effect for the 2017-2018 fiscal year are below in Table 1; and

Table 1 Stanislaus County Transit Operators

Ceres Area Transit, CAT (Urban Area Fixed Route) 20% Ceres Dial-A-Ride 10% Modesto Area Express MAX (Urban Area Fixed Route)1 20% Modesto Dial-A-Ride 1 10% Turlock Transit (Urban Area Fixed Route) 20% Turlock Transit Dial-A-Ride 10% Stanislaus Regional Transit (StaRT) (Urban-Rural Blend) 15%

1. FRR is 20% for MAX and 10% for MADAR paratransit. Inaccordance with PUC 99268.5(b), Modesto can calculate its FRRusing these percentages separately or combine both for a 20%FRR

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WHEREAS, the fare recover ratios in effect during the 2015-16 fiscal year are below in Table 2; and

Table 2

Stanislaus County Transit Operators Ceres Area Transit, CAT (Urban Area Fixed Route) 15% Ceres Dial-A-Ride 10% Modesto Area Express MAX (Urban Area Fixed Route)1 15% Modesto Dial-A-Ride 1 10% Turlock Transit (Urban Area Fixed Route) 15% Turlock Transit Dial-A-Ride 10% Stanislaus Regional Transit (StaRT) (Urban-Rural Blend) 10%

WHEREAS, if StanCOG reduces an Operator’s fare recovery ratio pursuant to the authorization granted in SB 903, StanCOG will be required to submit a report to the transportation policy committee of each house of the Legislature and to the Department of Transportation analyzing the options for organizing and supporting transit service in the county as specified; and

WHEREAS, StanCOG issued an RFP for purposes of identifying a consultant qualified to prepare such a report and will be able to comply with the statutory mandate should a reduction to an operators fare recovery ratio be granted; and

WHEREAS, StanCOG has drafted SB 903 Implementation Policies and Procedures, attached hereto as Exhibit “A”, which sets forth the policies, procedures and documentation required of the transit operators to request a fare recovery ratio adjustment for Policy Board consideration.

NOW, THEREFORE BE IT RESOLVED that the SB 903 Implementation Policies and Procedures attached hereto as Exhibit A is hereby adopted.

The foregoing Resolution was introduced at a regular meeting of the Stanislaus Council of Governments, on the 16th day of January 2019. A motion was made and seconded to adopt the foregoing Resolution. Motion carried and the Resolution was adopted.

MEETING DATE: January 16, 2019

BILL ZOSLOCKI, CHAIR ATTEST:

ROSA DE LEÓN PARK, EXECUTIVE DIRECTOR

1. FRR is 15% for MAX and 10% for MADAR paratransit. Inaccordance with PUC 99268.5(b), Modesto can calculate its FRRusing these percentages separately or combine both for a 15%

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EXHIBIT A

SB 903 IMPLEMENTATION POLICIES AND PROCEDURES

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STANCOG SB 903 IMPLEMENTATION POLICIES AND PROCEDURES

I. Present Scenario In accordance with the Transportation Development Act (TDA) and the Stanislaus Council of Government’s (StanCOG) Transit Cost Sharing Procedures, each transit operator within the county shall meet certain performance measure requirements, which represent utilization of operation efficiencies, and are calculated and identified as those fare recovery ratios (FRR) published in StanCOG’s Regional Transportation Plan (RTP).

The current RTP contains the following Fare Recovery Ratios for the Stanislaus Region:

Table 1 Stanislaus County Transit Operators

Ceres Area Transit, CAT (Urban Area Fixed Route) 20% Ceres Dial-A-Ride 10% Modesto Area Express MAX (Urban Area Fixed Route)1 20% Modesto Dial-A-Ride (MADAR)1 10% Turlock Transit (Urban Area Fixed Route) 20% Turlock Transit Dial-A-Ride 10% Stanislaus Regional Transit (StaRT) (Urban-Rural Blend) 15%

II. Transportation Development Act Overview

A. TDA Funding Eligibility

The Transportation Development Act (TDA) was enacted to improve existing public transportation services and encourage regional transportation coordination. This law provides two funding sources, Local Transportation Fund (LTF) and State Transit Assistance (STA) fund, to be allocated to transit and non-transit related purposes that comply with regional transportation plans. This SB 903 Implementation Policy addresses the distribution of LTF funds. LTF is derived from a ¼-cent of the general sales tax collected statewide, generating over $1.5 billion annually primarily for public transit in California.

Existing TDA law requires a transit Operator to meet a specified ratio of fare revenues to operating cost, called the Farebox Recovery Ratio (FRR). Generally, TDA law defines the minimum ratio necessary to receive LTF funding as 20% for Operators of general public transit services within urbanized areas, 10% for Operators in non-urbanized areas and 10% for Operators of services restricted to seniors and people with disabilities regardless of where it operates. If a transit Operator fails to meet the FRR applicable to the service it operates, TDA law requires the Regional Transportation Planning Agency (RTPA), StanCOG, to withhold an amount of LTF equal to the shortfall

1. FRR is 20% for MAX and 10% for MADAR. In accordance with PUC 99268.5(b), Modesto can calculate its FRR using these percentages separately or combine both for a 20% FRR.

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in farebox revenues. The Operator is required to cover the revenue shortfall by using local funds.

B. Need for New Policy

In the 2010 census, the population of Stanislaus County exceeded the 500,000-population threshold contained in TDA law, thereby requiring Operators of general public transit services in urbanized areas within the county to increase their FRRs by 5 percentage points (from 15% to 20%). Stanislaus Regional Transit was required to raise its FRR from 10% to 15% since its general public service operates in both urbanized and rural areas. As a result, despite attempts to optimize service and fare revenue, the four transit Operators in the County - Ceres Area Transit (CAT), Modesto Area Express (MAX), Stanislaus Regional Transit (StaRT), and Turlock Transit - have struggled to meet their farebox recovery requirements. For some, this has resulted in a lack of access to their full allocations of TDA funds needed to maintain existing service.

Operators within the Central Valley region face inherent challenges in meeting FRR requirements including, but not limited to: low population density, prevalent low and no-cost vehicle parking, entrenched social stigmas, higher than state average unemployment and public assistance rates, the emergence of Transportation Network Companies (TNC) offering other mobility options and a vehicle-centric society that contributes to low transit ridership, all of which contribute negatively to meeting financial performance standards. StanCOG also recognizes that financial performance standards, including fare recovery ratios, are only one of several performance measures that could be considered in determining the success or failure of a particular transit service in this environment.

Fare recovery ratios were inserted into the TDA nearly 40 years ago when conditions for operating transit were significantly less expensive than they are today. Some of the items that have significantly increased transit operating costs are:

• California Air Resources Board regulations mandating costly exhaust treatment• Regulations associated with the Americans with Disabilities Act• Training requirements for drivers• Increased traffic congestion and passenger factors that have significantly slowed operating

speeds and resulted in an increase in the number of vehicle service hours needed to servicethe same number of route miles

• Increases to minimum wage in California, requiring transit providers to apply wage increasesto maintain an appropriate offset for recruitment and retention of personnel

• Increased maintenance due to new environmentally friendly fuels and electronic equipmenton-board buses

• Increases to general contracted transit service costs

StanCOG is committed to maintaining the statutorily required performance measures while recognizing the challenges Operators within Stanislaus County are faced with in order to meet the transit needs of the community. Many transit needs cannot be met while maintaining the current TDA compliance standards as a result of the 5 percentage point increase in FRR’s for general public service in urbanized areas. Regardless of the demonstrated need for transit service, Operators within Stanislaus County must now design transit systems based almost exclusively on whether or not FRR’s can be met.

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III. SB 903

As a result of the consequences of the recently increased FRR’s, StanCOG sponsored legislation, SB903, codified as Section 99270.8 of the Public Utilities Code, effective July 16, 2018, in order to provideOperators with relief and maintain existing transit service.

SB 903 authorizes StanCOG, as the RTPA and administrator of TDA funds, when determining if specifiedOperators have met the requirements for LTF claims for transit funds for the 2018–19 and the 2019–20fiscal years (FY), to reduce the applicable ratio of fare revenues to operating cost for specifiedOperators by up to 5 percentage points from the ratio that was effective during FY 2015–16. IfStanCOG acts pursuant to this authorization, the statute requires StanCOG to submit a report to thetransportation policy committee of each house of the Legislature and to Caltrans before January 1,2020. This report is required to analyze the options for organizing and supporting transit service inStanislaus County. The statute becomes inoperative on July 1, 2020 and is repealed as of January 1,2021.

The text of SB 903 as enacted on July 16, 2018 is contained on the next page.

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Section 99270.8 is added to the Public Utilities Code, to read:

99270.8. (a) This section shall only apply to an individual operator that both has its primary servicearea in the Stanislaus Council of Governments’ jurisdiction and files claims with the StanislausCouncil of Governments pursuant to Section 99260.

(b) (1) Notwithstanding any other provision of this article, in determining if an individualoperator complies with Section 99268.1, 99268.2, 99268.3, 99268.4, 99268.5, or 99268.9, theStanislaus Council of Governments may reduce the applicable ratio of fare revenues tooperating cost for an individual operator by up to five percentage points from the ratio that waseffective during the 2015–16 fiscal year.

(2) The Stanislaus Council of Governments may use the calculation method described inthis section for calculations beginning with the 2018–19 fiscal year.

(c) (1) If the Stanislaus Council of Governments reduces an individual operator’s ratio pursuantto this section, the Stanislaus Council of Governments, before January 1, 2020, shall submit areport to the transportation policy committee of each house of the Legislature and to thedepartment analyzing the options for organizing and supporting transit service in the county.

(2) The report shall include, but not be limited to, all of the following:

(A) A description of the transit routes operating within the county.

(B) The service levels on those transit routes, including any planned expansions or consolidations.

(C) The ridership numbers for those transit routes.

(D) The annual budget numbers for the transit services provided by each individual operator inthe county, including its ratio of fare revenues to operating cost and any salary increasessince the enactment of this section.

(3) A report to be submitted pursuant to this subdivision shall be submitted in compliancewith Section 9795 of the Government Code.

(d) This section shall become inoperative on July 1, 2020, and, as of January 1, 2021, is repealed.

In order to ensure that the transit needs of individuals in the County of Stanislaus continue to be met and to preserve the transit system in that county, it is necessary for this act to take effect immediately.

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A. Eligible Farebox Recovery Ratios Baseline Adjustments

Notwithstanding the legislature’s modification of TDA law during the FY 2017-18 Legislative Session, StanCOG recognizes that a request of the legislature for continued or permanent relief may be necessary. The StanCOG Policy Board’s expectation is that each transit agency will continue efforts to meet the current fare recovery ratio requirements (see Table 1). After a certified annual fiscal audit of the fiscal year for which relief is being sought, in which the final achieved fare recovery rates will be confirmed, an Operator that failed to meet its current required fare recovery ratio may request a fare ratio adjustment based on the procedure below.

In accordance with SB 903 (PUC Section 99270.8), for FY 2018-19 and FY 2019-20, the StanCOG Policy Board may approve up to a 5 percentage point reduction from the fare recovery ratios listed in Table 2 that were in effect for FY 2015-16. FY 2015-16 Farebox Recovery Ratios are listed in Table 2 below:

Table 2

Stanislaus County Transit Operators Ceres Area Transit, CAT (Urban Area Fixed Route) 15% Ceres Dial-A-Ride 10% Modesto Area Express MAX (Urban Area Fixed Route)1 15% Modesto Dial-A-Ride (MADAR)1 10% Turlock Transit (Urban Area Fixed Route) 15% Turlock Transit Dial-A-Ride 10% Stanislaus Regional Transit (StaRT) (Urban-Rural Blend) 10%

B. StanCOG’s Commitment to Preserving Transit Service in Stanislaus County

Pursuant to the authority granted under PUC Section 99270.8, StanCOG may approve adjustments to FRR for an Operator that failed to meet its required fare ratio as certified by an annual fiscal audit for FY 2018/2019 or FY 2019/2020, thereby providing relief from FRR penalties described in PUC Section 99268.9, to the extent allowable by PUC Section 99270.8. The StanCOG Policy Board will consider requests for FRR relief allowed by PUC Section 99270.8 if the Operator requests (i) an adjustment, (ii) submits the required documentation with the proper supporting detail, and (iii) complies with theprovisions of PUC Section 99270.8 and this Implementation Policy.

1. FRR is 15% for MAX and 10% for MADAR. In accordance with PUC99268.5(b), Modesto can calculate its FRR using these percentagesseparately or combine both for a 15% FRR.

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IV. Procedure for Operators to Request FRR Relief

A. To request an FRR adjustment an Operator shall submit the following to StanCOG’sManager of Financial Services:

1. Completed Request Forms, attached as Exhibit A and Exhibit B, to this Policy.2. An audited financial report for the applicable fiscal year, indicating that the Operator has not

met the required FRR for the respective fiscal year.3. A comprehensive report that demonstrates the Operator has evaluated or implemented

strategies for obtaining compliance with FRR requirements, such as, but not limited to thefollowing:

o reductions or realignments of low-performing routes;o reductions in operating hours in poor-performing periods;o passenger fare increases;o system efficiency improvements;o service enhancements intended to increase ridership;o efforts to increase local revenue; ando efforts to reduce operating costs.

4. A detailed explanation of options and strategies being evaluated and considered by theOperator for future change to achieve fare recovery ratio for the subsequent fiscal year. Atimeline of when and how the options and strategies will be implemented must also beincluded.

5. All requests must be received no later than March 31st of the fiscal year subsequent to theyear for which the Operator is seeking relief.

B. StanCOG Policy Board Process for Considering Adjusting An Operator’s Fare Box RecoveryRatio

The StanCOG Policy Board will consider an adjustment request to reduce an Operator’s farebox recovery ratio requirement on an individual basis during the Annual Transit Cost Sharing Process, which occurs in the months of March-April each year. Consistent with procedures the Policy Board uses to approve an Operator’s request for a waiver or exemption pursuant to the provisions of Article 4 of the TDA, any action taken on a fare recovery adjustment request will occur through StanCOG Policy Board action, which action shall be separate from any other TDA action of the Policy Board. Any Operator requesting a reduction to its fare ratio shall submit (i) the written adjustment request for the prior fiscal year, (ii) the Operator’s subsequent fiscal year annual TDA Claim, and (iii) all documentation and materials required by Section IV. A. above.

To clarify the timing of a fare ratio relief request, the timing of a relief request for FY 2018-19 is provided below:

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1. FY 2018-19 is the first year eligible for a fare ratio adjustment request.2. The Annual TDA Audit for FY 2018-19 is expected to be available in March 2020, so an Operator

would be required to submit the adjustment request in April of 2020 along with its FY 2020-21Transit Claim.

3. Any requests received will be considered (approved or rejected) by the StanCOG Policy Boardat the June 2020 meeting, or the next available meeting thereafter.

4. If the adjustment is approved by the Policy Board, the TDA penalty procedures will be waivedfor the penalty fiscal year, and the Policy Board approval will be attached to the FY 2018-19Fare Recovery Ratio reports and become part of StanCOG’s documentation for Triennial Audits.

5. If the request is rejected, the penalty procedures will begin with the FY 2021-22 fiscal year andwill affect that fiscal year transit claim.

6. Section 99270.8 of the PUC does not contain an appeal procedure. The decision of theStanCOG Policy Board shall be deemed final.

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EXHIBIT “A”

[PLEASE PUT ON YOUR AGENCY LETTERHEAD]

REQUEST FOR FAREBOX RECOVERY RATIO ADJUSTMENT

Fiscal Year

Farebox Recovery Ratio Standard:

Farebox Recover Ratio Achieved: ______________

Percentage of adjustment requested:

Please describe efforts made to achieve standard ratio:

(Examples: Increase fares, added other revenue sources, decrease to operation expenses, innovations implemented, etc.)

Sign and date

Attachment: FRR Calculation form

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EXHIBIT “B”

****DRAFT FORM*******

Request for Fare Recovery Adjustment

Transit Service Requesting Adjustment Route / Service Type

PERFORMANCE MEASURES

Operating Cost1 Passengers Vehicle Service Hours Vehicle Service Miles Employees Local Revenues2

PERFORMANCE INDICATORS

Operating Cost Per Passenger Operating Cost Per Vehicle Service Hour Passengers per Vehicle Service Hour Passengers Per Vehicle Service Mile Vehicle Service Hours Per Employee Local Revenues as a Percent of Operating Cost

FY2017/18 Estimate Actual Variance

$0 $0 $0 0 0 $0 0 0 $0 0 0 $0 0 0 $0

$0 $0 $0

#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

1. Operating costs refer to total costs of operations as defined in TDA CCR 6611.1 and exclusions as allowed by PUC99268.16-99268.17.

2 Local Revenues include all sources of allowed local revenues not generated from State and Federal resources, Such as Fares, Local Tax Revenue, advertising, etc.…, as outlined in TDA CCR 6611.3

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