~ los Angeles County

Met r 0 Metropolitan Transportation Authority

One Gateway Plaza 213-922.2000 Tel Los Angeles, CA 90012-2952 metro.net

TO:

FROM:

SUBJECT:

DISCUSSION

BOARD OF DIRECTORS J PHILLIP A. WASHINGTON ~A' CHIEF EXECUTIVE OFFICER

JUNE 18, 2015

COUNCILS OF GOVERNMENTS EXECUTIVE DIRECTORS' MEETING

On June 15, 2015, I met with the Executive Directors of the various Councils of Governments (COGs) and subregions. The purpose of the meeting was a "meet and greet", outline my vision for the agency, the development of a strategic plan and the subregions' role. Additionally, I provided an update on the potential 2016 ballot measure and the input needed from the subregions.

Potential Ballot Measure

At the meeting, Countywide Planning staff reviewed the schedule leading up to the Board's June 2016 decision as to whether to pursue a Ballot Measure. In order to complete the necessary financial and performance modeling, initial input from the subregions as well as other stakeholders such as business, labor, environmental, etc. is needed by September 1, 2015. Subsequent input will also be sought in an iterative fashion. Staff also provided an update on the draft ballot measure legislation.

NEXT STEPS

Tomorrow, I will transmit letters formally notifying stakeholders of the September 1, 2015 deadline. Additionally, staff will continue to meet with the various subregions on a one-on-one basis as well as with other stakeholder groups.

Attachment: June 15, 2015 Meeting Handouts

On my first day, I sent my "Expectations" to Metro employees. After two weeks on the job, I wanted to share my "Vision" for the agency. Perhaps, the most important concept I embrace is the role of leadership in an organization. It is obvious that I cannot turn every wrench , drive every bus, operate every train, plan and manage every highway or transit project, type every memo, interpret every piece of complicated legislation, or do the great majority of tasks that have to happen every day here at Metro. What I can do is provide leadership to this organization.

I can impact our management philosophy and style, our corporate culture, our work ethic, and perhaps most importantly, develop and impart to every member of this organization a "vision" for our future to guide us further into this century and beyond. After a couple of weeks on the job, I wou ld like to share with each of our employees (represented, salaried, consultant and contracted) my vision for Metro:

• We emerge as the best, most flexib le, and most innovative transportation agency in the world. An organization that is inundated with requests for on-site visits, materials, insights and Metro Board and staff assistance designed to assist other regions in emulating our successes.

• We understand and always view safety and security as our #1 priority.

• We understand, utilize and stay abreast of accelerating technological innovation.

• We understand the communities we serve, with all their demographic shifts, workforce/lifestyle changes and ever evolving mobility needs.

• We focus on the "basics", i.e., curbs, sidewalks, last mile, etc., even as we build mega projects that transform the region, and move 1-4 million people per day.

• We recognize that we are custodians of the taxpayers' monies, which bring with it a sacred responsibility for frugality, responsibility, practicality and appropriate expenditures.

• We recognize that we are a service business and that an essential element of our jobs is to attract a customer to our transportation system and that a lost customer costs us dearly now and forever.

• We create and implement a strategic plan that addresses the County's and agency needs for years to come.

• We accept and respect the authority and leadership of our Board of Directors . And, implement the policy of the Metro Board of Directors in an exemplary fashion.

~Metrd

• Where all departments and divisions within the agency become profit centers.

• Where silos are broken down and the agency becomes truly one entity, with respect to spea king with one voice and operating on the same wavelength .

• We treat the Union Leadership team like the partners they are.

• We hire, promote, supervise and evaluate all employees, customers , contractors and others in a fai r, equitable and unbiased manner .

• We finish every project on time and within budget, and be truthful as to why, if we don't.

• We encourage every employee to shed long held conceptual constraints on how things are done and constantly look for new ways to do things better.

• We invest in our employees (both salaried and represented) with regard to professional development, succession planning, compensation, recognition, and effectively and quickly remedy employee problems when they occur.

• We partner with the private sector, the commun ity and our public sector agency partners in such a way that they see us as true partners in mobil ity and economic development and not some "bul ly" all knowing BIG government agency .

• We understand the urgency and seriousness of ou r transportation mob ility responsibil ity.

• We create and implement an industry leading Asset Management (State of Good Repai r) Program that re lies on predictive maintenance cycles to red uce maintenance costs, extends asset life, and reduces asset breakdown surprises that impact daily service.

• ge

• We operate in the most efficient, cost effective and customer responsive manner possible every hour of the day, every day of the week and in every area that we serve.

• Where all departments and divisions within the Agency recognize our obligations as a publicly constituted organization fo r full disclosure of our activities, responsiveness to our customers and constituents and competent execution of our assigned responsibilities.

• We establish realistic yet challenging goals that correspond with our specifically designated charter responsibilities to include but not be limited to:

• Capture of the greatest share possible of passenger trips and increase farebox recovery

• Provision of mobility service in the most environmentally sound and fuel efficient manner possible

• Optimize utilization of our financial resources in pursuit of our legislative and Board-approved goals and objectives

• Respond to our customers and constituents

• Finally, through the successful pursuit of all of the above, achieves a work environment where all employees have a genuine and elevated sense of pride in themselves and what they do.

So, the condensed Vision Statement that I expect every department and every employee to know, live by, and build on?

Phillip A. Washington

~Metro

Agenda CEO Meet and Greet with Sub-Regional Council Executives

Long Range Transportation Plan/ Potential Ballot Measure

Highland Park Conference Room 25th Floor, Metro Headquarters One Gateway Plaza Los Angeles, CA

1. Introductions and CEO Vision

2. General Discussion

3. LRTPfPotential Ballot Measure Update

• Process Overview

• Legislation Status

4. Next Steps

5. Other Issues and Adjourn

Handouts:

1) Potential Schedule

Washington 15 minutes

All 15 minutes

Welborne 10 minutes

Washington 10 minutes

All 5 minutes

2) Process Overview (LRTPfBallot Measure Framework Considerations) 3) Subregional Boundaries and Optimal Capital Improvement Targets 4) Subregional Project Priority Submittal Form 5) SB 767 Legislation

® los Angeles County

Met r 0 Metropollt:an Transportation Authority

June 15, 2015

Potential 2016 Ballot Measure- Proposed Schedule June2015

• Formally Notify Stakeholders of Priority Due Dates and Schedule June 19, 2015

• Stakeholder Outreach on Framework Considerations/Priorities June- August 2015

• Stakeholder Initial Input Due September 1, 2015

• Special Board Staff Meeting Mid September 2015

• Approval of Legislation September /October 2015

• Metro Board Meeting to Consider Expenditure Plan Framework October 201 5

• Stakeholder Outreach November 2015- May 2016

• Metro Hosted Community Workshops February/May 2016

• Preliminary Expenditure Plan to Metro Board March 2016

• Metro Board Considers Final Ordinance & Expenditure Plan June 2016

• Submit Ordinance and Resolution to County Board of Supervisors July 2016

• Submit Ordinance and Resolution to County Registrar-Recorder August 2016

• Election November 2016

Stakeholders (including. but not limited to):

• COGs

• Business

• Industry

• Labor

• Environmental

• Active Transportation/Public Health

• Metrolink • Caltrans • Local Transit Operators

• Regional Facility Operators (Airports, Sea Ports)

LRTP/Ballot Measure Framework Considerat ions

Mobility

• Improve travel times, system connectivity, and reliability

• Reduce incidents

• Improve transit and active transportation usage

• Improve personal safety

• Look forward to 21" century mobility

• Improve transit, roadway, bicycle, and pedestrian safety

• Utilize and partner with 21" century mobility options

• Address Mega-Trends

Transit Modal Connectivity

. Bus Transit . Complete Streets

. Rail Transit . First-Last Mile

. Bus Rapid Transit . Multi-modal Corridor Program . Paratransit . Park-and-Ride/Station Access Program . Metrolink . BikeShare/CarShare

• Long-Term Financial Strategy . Resources available . Constraints . Baseline assumptions . What is the next federal project?

I

Highway Efficiency

• Highway Interchange Improvements

• Highway "Hot Spots"

• Arterial TSM Program

• Highway TSM Program

• Soundwall

• Slowlane

2016 Ballot Measure

I

• Ensure we are keeping our system • Reduce Green House Gases • Increase economic output • Increase population served by in a state of good repair facility

• Al ign all resources to ensure we • Reduce Vehicle Miles Traveled • Increase job creation and retention • Increase service to transit-have a strategic and dependent populations

comprehensive long range plan

• Extend life of facility or service • Improve quality of life • Reduce goods movement impact • Improve first -last mile connections

• Reduce goods movement impact • Minimize environmental impact • Reduce number and length of peak • Integrate tr ansit hubs hour trips

• Leverage state and federal funding • Encourage efficient mode share • Accommodate goods movement

Project/Program Categories

ITS I Technology Demand Based Program Goods M ovement State of Good Repai r/ Active Transportation Regional Facilities (Homeland/Personal Security) Safety Reliability &

Qual ity of Services . Arterial ITS Program • Carpool Lanes • Freight • Local Streets and . Bicycle Projects • Airport Access Roads . Highway ITS Program • Managed Lanes/ • Grade Separations • Transit . Pedestrian Projects • Sea Port Access

Express lanes . Vehicle Technology • Rideshare • Truck Lanes • Grade Crossing . Enhancements/ • Union Station Beatification

• Traveler Information • Safe Route To School

• • • Subregional Implementation Regional Decisions . How projects are paid for (Local Return, regional funding, etc.)? . Regional facilities/projects . How projects are delivered (locally, JPA, Metro, etc.)? . System performance . State/Federal regulatory requirements and

mandates . Discretionary funding priorities

• Constrained LRTP

{Non-Ballot Measure)

~I 2017LRTP I I 6/ 15/2015

Subregional Boundaries

Arroyo Verdugo Subregion Includes:

• Burbank • Glendale • La Crescenta-Montrose • La Canada Flintridge • Pasadena • South Pasadena

North County Subregion Includes:

• Santa Clarita • Palmdale • Lancaster

~Metro

Legend

City Boundary

c::J Regional Facilities

Subregion

/Vroyo Verdugo

0 Central Los Angeles

0 Gateway Cities

0 Las Virgenes/Malibu

0 North Los Angeles County

D San Fernando Valley

0 San Gabriel Valley

0SouthBay

O westside Cities

SAN FERNANDO

VALLEY

0 5 tO ---====:JMIIes

NORTH LOS ANGELES COUNlY

SAN GABRIEL VALLEY

Optimal Capital Improvement Targets

Tier 1 - New ~ Cent Sales Tax

Optimal Pay-Go (YOE, No Bonds}

Subregion Sub- New 1/2 Cent

regional 30 Years Share% (FY 18-47)

Arroyo Verdugo 7.82% $ 1,772

Central Los Angeles 19.12% $ 4,332

Gateway Cities 19.84% $ 4,495

Las Virgenes/Malibu 1.42% $ 322

North LA County 9.40% $ 2,130

San Fernando Valley 14.66% $ 3,321

San Gabriel Valley 16.17% $ 3,663

South Bay Cities 10.62% $ 2,406

Westside 13.06% $ 2,959

Subregional Total 112.11% $ 25,399

1) Dollars in millions

2) YOE =Year of Expenditure

3) Santa Clarita included in North LA County

4) Arroyo Verdugo includes Burbank, Glendale, Pasadena, So. Pasadena

~ ond Lo Conodo-FUnt,;dge, ond Lo Omento-Montm•e

Metro

$ $ $ $ $ $ $ $ $

$

New 1/2 Cent 40 Years

(FY 18-57)

2,889

7,062

7,328

525

3,472

5,415

5,973

3,923

4,824

41,411

Local Return, Transit

Ops/State of Good Repair

SO%

$ $ $ $ $ $ $ $ $

$

De-escalated to Current 2014 $

New 1/2 Cent New 1/2 Cent 30 Years

(FY 18-47)

843 $ 2,062 $ 2,140 $

153 $ 1,014 $ 1,581 $ 1,744 $ 1,145 $ 1,409 $

12,092 $

Multi-modal Capital

Improvements SO%

40 Years (FY 18-571

1,125

2,750

2,853

204

1,352

2,108

2,325

1,527

1,878

16,123

Optimal Capital Improvement Targets

Tier 2 - 18 Year ~ Cent Renewal

Pay-Go {YOE, No Bonds) De-escalated to Current

2014$

Subregion Optimal Sub-

1/2 Cent Renewal 1/2 Cent Renewal regional Share%

18 Years 18 Years {FY 39-57) {FY 39-57)

Arroyo Verdugo 7.82% $ 1,772 $ 506

Central Los Angeles 19.12% $ 4,332 $ 1,237

Gateway Cities 19.84% $ 4,495 $ 1,284

Las Virgenes/Malibu 1.42% $ 322 $ 92

North LA County 9.40% $ 2,130 $ 608

San Fernando Valley 14.66% $ 3,321 $ 949

San Gabriel Valley 16.17% $ 3,663 $ 1,046

South Bay Cities 10.62% $ 2,406 $ 687

Westside 13.06% $ 2,959 $ 845

Subregional Total 112.11% $ 25,399 $ 7,255

1) Dollars in millions

~ 2) YOE = Year of Expenditure

3) Santa Clarita included in North LA County

4) Arroyo Verdugo includes Burbank, Glendale, Pasadena, So. Pasadena, l ocal Return,

La Canada-Flintridge, and La Crescenta-Montrose Transit Capital Ops/State of I ) Improvements Good Repair SO%

SO%

Metro 3 --

2017 lRTP Update- Subregional Proj ect Priority Submittal Form

Subregion: xxxxxxxxxxx Tier 1 Funding Share: so Tier 2 FundlnR Share: so Total Funding Share: so

Project/Program Cateeorv TransJt Modal Connectivity Highway f:Hiciency ITS I T•chnolocv Demand Based Proa:r•m Goods Movement Active Transportation Totals Chock

0% 0% 0% 0% 0% 0% 0% 0% Percent of Funding Share (" )

Amount of Fundin& Share($) so so so so so so so so

Relative Priority ProJect Cost (S) Project Cost (S) ProJect Cost (S) Project Cost (S) Project Cost (S) Project Cost (Sl ProJect Cost IS)

High

Medium

low

Total = so Total= so Total= so Total= so Total = so Total= so Total = so •REF I

AMENDED IN SENATE JUNE I, 20 15

SENATE BILL No. 767

Introduced by Senator De Leon (Principal coauthors: Senators Allen, Hall, Hernandez, Lara,-attd

I:Jitt Liu, and Pavley) (Principal coauthors: Assembly Members Bloom, Chau, Holden,

Jones-Sawyer, and Nazarian)

February 27, 2015

An act to add Section 130350.7 to the Public Utilities Code, relating to transportation.

LEGISLATIVE COUNSEL'S DIGEST

SB 767, as amended, De Le6n. Los Angeles County Metropolitan Transportation Authority: transactions and use tax.

Existing law authorizes the Los Angeles County Metropolitan Transportation Authority (MTA) to impose, in addition to any other tax that it is authorized to impose, a transactions and use tax at a rate of0.5% for the funding of specified transportation-related projects and programs, subject to various requirements, including the adoption of an expenditure plan and voter approval. Existing law authorizes the MTA to seek voter approval to extend the transactions and use tax pursuant to an amended ordinance, subject to various requirements, including adoption of an amended expenditure plan that, among other things, updates certain cost estimates and identifies expected completion dates for projects and programs under the previous expenditure plan, and also requires the amended expenditure plan to be included in an updated long range transportation plan, as specified.

This bill would authorize the MTA to impose an additional transportation transactions and use tax at a rate of 0.5% subject to

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SB767 -2-

various requirements, including the adoption of an expenditure plan and voter approval. approval, as specified.

The Transactions and Use Tax Law limits to 2% the combined rate of all transactions and use taxes imposed in any county, with certain exceptions.

This bill would exempt the transactions and use tax authorized by the bill from this limitation.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

1 SECTION 1. Section 130350.7 is added to the Public Utilities 2 Code, to read: 3 130350.7. (a) The Los Angeles County Metropolitan 4 Transportation Authority (MTA), in addition to any other tax it is 5 authorized to impose or has imposed, may impose a transactions 6 and use tax at the rate of0.5 percent, for a period to be determined 7 by the MTA, that is applicable in the incorporated and 8 unincorporated areas of Los Angeles County. 9 (b) The ordinance imposing the tax shall contain all of the

10 following: 11 (1) An expenditure plan that lists the transportation projects and 12 programs to be funded from net revenues from the tax. The 13 expenditure plan shall appear in the ordinance as an exhibit. The 14 expenditure plan shall include all of the following: 15 (A) The most recent cost estimates for each project and program 16 identified in the expenditure plan. 17 (B) The identification of the accelerated cost, if applicable, for 18 each project and program in the expenditure plan. 19 (C) The approximate schedule during which the MTA anticipates 20 funds will be available for each project and program. 21 (D) The expected completion dates for each project and program 22 within a three-year range. 23 (2) Provisions conforming to the Transactions and Use Tax Law 24 (Part 1.6 (commencing with Section 7251) of Division 2 of the 25 Revenue and Taxation Code), except as otherwise provided in 26 subdivision (f).

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-3- SB767

I (3) A provision limiting the MTA's costs of administering the 2 ordinance and the net revenues from the tax to I.5 percent of the 3 total tax revenues. 4 ( 4) A requirement that the net revenues from the tax, defined 5 to mean the total tax revenues less any refunds, costs of 6 administration by the State Board of Equalization, and the MTA's 7 administration costs, shall be used by the MTA to fund 8 transportation projects and programs identified in the expenditure 9 plan.

IO (c) The MTA shall do all of the following: II (1) Develop a transparent process to determine the most recent 12 costs estimates for each project and program identified in the 13 expenditure plan. 14 (2) At least 30 days before submitting the ordinance described 15 in subdivision (b) to the voters, post the expenditure plan on its 16 Internet Web site in a prominent manner. 17 te1 18 (d) The ordinance shall be adopted by the MTA board, which 19 shall also adopt a resolution that submits the ordinance to the 20 voters. 21 td1 22 (e) The ordinance shall become operative pursuant to Section 23 130352 if approved by two-thirds of the voters voting on the 24 measure, pursuant to subdivision (d) of Section 2 of Article XIII 25 C of the California Constitution. 26 (f) (1) If the voters approve the ordinance authorized by this 27 section, the expenditure plan included as an exhibit to the 28 ordinance pursuant to paragraph(/) of subdivision (b) shall also 29 be included in the revised and updated Long Range Transportation 30 Plan within one year of the date the ordinance takes effect. The 31 revised and updated Long Range Transportation Plan shall also 32 include capital projects and capital programs that are adopted by 33 each subregion that are submitted to the MTA for inclusion in the 34 revised and updated Long Range Transportation Plan, if the cost 35 and schedule details are provided by the subregions, in a manner 36 consistent with the requirements of the plan. Inclusion of a capital 3 7 project or a capital program in the Long Range Transportation 38 Plan is not a commitment or guarantee that the project or program 39 shall receive any future funding.

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SB767 -4-

1 (2) For purposes of this subdivision, ~~subregion" shall have 2 the same meaning as that term is defined in the Long Range 3 Transportation Plan process in effect as of January 1, 2008. 4 ~ 5 (g) The MTA may incur bonded indebtedness payable from the 6 net revenues of the tax pursuant to the bond issuance provisions 7 of this chapter and any successor act. 8 ffl 9 (h) The tax authorized by this section shall be imposed pursuant

10 to the Transactions and Use Tax Law (Part 1.6 (commencing with 11 Section 7251) of Division 2 of the Revenue and Taxation Code), 12 notwithstanding the combined rate limitation in Section 7251.1 of 13 the Revenue and Taxation Code.

0

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