2000 MEASURE A REVENUE & EXPENDITURE PLAN

In November 2000, the voters in Santa Clara County approved Measure A, a 30-year half cent sales tax devoted to specified public transit capital improvement projects and operations.  It was passed by a 70.3 percent majority vote.

The 2000 Measure A Revenue and Expenditure Plan is the roadmap for moving the Measure A projects forward through the various stages of development.

The current Revenue and Expenditure Plan was approved by the VTA Board of Directors on June 15, 2006.  When approving it, the Board included the provision that the Revenue and Expenditure Plan be reviewed on a period basis.

2006 Revenue & Expenditure Plan
2008 BART Operating Subsidy

UPDATE PROCESS

As part of its approval on June 15, 2006 of the 2000 Measure A Revenue and Expenditure Plan, the VTA Board required that periodic reviews of the Plan occur.

VTA staff is currently undertaking an update of the Plan.  This update has a two-fold purpose:

• Set policy direction for the long term.
• Provide framework for short-term strategic decisions.

In addition, the adoption of a revised 2000 Measure A Revenue and Expenditure Plan will provide short-term direction for key decisions to be made on the following three Measure A projects:

• Silicon Valley Rapid Transit (SVRT) project.
• Downtown East Valley light rail extension to Eastridge Mall.
• Caltrain South County project.

The Silicon Valley Rapid Transit Project (BART to Silicon Valley) will be nearing the end of 65 percent design.    The light rail extension to Eastridge Mall and the Caltrain South County early phase will have completed final engineering plans.   Staff requires policy direction on the next steps for these and other Measure A projects.

Critical Elements

The development of policy guidance is an important step in the update of the Revenue and Expenditure Plan.  The Board’s Policy Guidance for revising the Measure A Revenue and Expenditure Plan will be consistent with:

• the VTA Transit Sustainability Policy;
• the MTC Regional Transportation Plan Policy; and;
• the VTA Vision Statement, currently being modified.

Staff developed draft “Policy Guidance” for the Board's review and discussion at its April 25, 2008 Board of Directors Workshop.  The discussion at each of the Board Standing Committees on May 15, 2008 will focus on those policies that pertain more to each committee's area of responsibility, as identified.  After the Board Standing Committees, the staff will revise the guidance, if necessary, to reflect actions taken by each committee.

Policy Guidance

The update process had three critical elements:

1.    Development of policy guidance.    The development of policy guidance is an important step in the direction of updating the Revenue and Expenditure Plan.    The Board’s Policy Guidance for revising the Measure A Revenue and Expenditure Plan will be consistent with:

• The VTA Transit Sustainability Policy.
• The MTC Regional Transportation Plan Policy (“3 E’s").
• The VTA Vision Statement, currently being modified.

2.    Revised financial model.    Over the past year, VTA staff has contracted consultant services that are expert in developing financial models for transit agencies.    The revised financial model includes industry best practices and provides a structure and level of detail that VTA needs to support the Measure A Expenditure Plan.   It is also required for major projects to receive federal funding.

3.    “Portfolio of Plans”.    VTA staff will develop a “Portfolio of Plans” that are consistent with the policy guidance set forth at the beginning of the process.    The Portfolio will include different assumptions about new revenue sources and timing of project delivery.   VTA staff recommends the Plans address four revenues scenarios:

• No new revenue
• VTP 2035 revenue
• ⅛-cent sales tax
• ¼-cent sales tax.

Schedule

To accomplish the update of the Plan, VTA staff has outlined a schedule that includes time points for information and discussion for the Board of Directors and the Board Committees.    The proposed schedule for updating the plan would occur over the next five months:

April 3, 2008 Board of Directors Meeting
- Introduction of Plan Update Process and proposed Policy Guidance

April 25, 2008 Board of Directors Workshop
- Update on Measure A projects
- Discussion of Policy Guidance
- Description of Financial Planning Tool
- Financial Plan Update

May 15, 2008 Committee Meetings
- Discussion of Policy Guidance

June 5, 2008 Board of Directors Meeting
- Adoption of Policy Guidance
- Direction on the development of a “Portfolio of Plans” and related analysis

August 7, 2008 Board of Directors Meeting
- Presentation of results of the “Portfolio of Plans”
- Discussion of Plans

August 21, 2008 Committee Meetings
- Discussion of “Portfolio of Plans” and recommendations

September 4, 2008 Board of Directors Meeting
- Approval of Revenue and Expenditure Plans
- Direction on near-term projects’ phases

The above proposed schedule is preliminary and subject to change.   Discussions will also be held at Advisory Board meetings and an additio