Date: Wednesday, January 25, 2016; 6:00 p.m.
Location: Transportation Authority Hearing Room, 1455 Market Street, Floor 22
Members: Chris Waddling (Chair), Peter Sachs (Vice Chair), Myla Ablog, Becky Hogue, Brian Larkin, John Larson, Santiago Lerma, Jacqualine Sachs, Peter Tannen, Shannon Wells-Mongiovi and Bradley Wiedmaier
6:00 1. Committee Meeting Call to Order
6:05 2. Chair’s Report – INFORMATION
6:10 3. Election of Chair and Vice Chair for 2017 – ACTION
As set forth in the CAC’s By-Laws, the terms of the CAC Chair and Vice-Chair expire in January of each year. An election is required to select the Chair and Vice Chair by a majority of the appointed CAC members. To be eligible for election to the Chair or Vice Chair positions, a CAC member must be nominated at the last meeting of the previous calendar year. At the November 30, 2016 meeting, Chris Waddling was nominated for Chair, while Peter Sachs and Bradley Wiedmaier were nominated for Vice Chair. The statements of qualifications and objectives for each candidate were submitted to the Clerk and are included as attachments to this item. The newly elected Chair and Vice Chair will immediately preside over the current meeting and the remaining 2017 meetings.
6:15 Consent Calendar
4. Approve the Minutes of the January 11, 2017 Special Meeting – ACTION* minutes
5. State and Federal Legislative Update – INFORMATION* legislation
Every month, we provide an update on state and federal legislation and, when appropriate, seek recommendations to adopt new positions on active legislation. The attached matrix tracks the latest activity on state bills and the positions previously adopted by the Transportation Authority. Staff is proposing the following new positions, to be acted on at the February 14 Finance Committee meeting: support positions on Assembly Bill (AB) 1 (Frazier), AB 28 (Frazier) and SB 1 (Beall), and an oppose position on AB 65 (Patterson). At the January 5th Special Board Meeting, Chair Peskin introduced a resolution specifically supporting AB 87 (Ting), which will be considered at the January 24th Board meeting.
6. Accounting Report and Investment Report for the Six Months Ending December 31, 2016 – INFORMATION* memo
The Transportation Authority’s Fiscal Policy directs staff to give a quarterly report of expenditures including a comparison to the approved budget. The Transportation Authority’s Investment Policy directs that a review of portfolio compliance be presented along with the quarterly report.
End of Consent Calendar
6:20 7. Adopt a Motion of Support for the Allocation of $4,306,324 in Prop K Funds and $2,540,359 in Prop AA Funds, with Conditions, for Five Requests, Subject to the Attached Fiscal Year Cash Flow Distribution Schedules – ACTION* memo enclosure presentation
As summarized in Attachments 1 and 2, we have five requests totaling $6,846,683 in Prop K and Prop AA funds to present to the Citizens Advisory Committee. The San Francisco Municipal Transportation Agency has requested Prop K funds for two projects: $647,000 for the construction phase of bicycle, pedestrian, and traffic calming improvements along the residential portion of the Wiggle bicycle route between the Church/Duboce and Fell/Scott intersections; and $100,000 to leverage a $300,000 Caltrans Planning Grant for an extensive community planning process to develop neighborhood greenway designs along three key corridors in District 11. San Francisco Public Works (SFPW) has requested $80,000 in Prop K funds to design pathways to help bicyclists and pedestrians safely navigate the western entrance to the Bayshore Boulevard/Cesar Chavez Street/Potrero Avenue intersection (The Hairball). SFPW has also requested funds for two pavement renovation projects: $3,479,324 in Prop K funds for the construction phase of the Filbert & Leavenworth Streets Pavement Renovation project, and $2,540,359 in Prop AA funds for pavement renovation on Brannan Street from The Embarcadero to 10th Street/Division Street/Potrero Avenue intersection.
6:35 8. Adopt a Motion of Support for Authorization to Borrow up to $46,335,835, to a Total Amount Not to Exceed $140,000,000 from the Revolving Credit Agreement with State Street Public Lending Corporation – ACTION* memo presentation
The purpose of this memo is to brief the Citizens Advisory Committee on our debt management strategy for the Prop K program and to request a motion of support for authorization to borrow up to $46,335,836, to a total amount not to exceed $140,000,000 in remaining capacity from our Revolver Credit Agreement (Revolver) with State Street Public Lending Corporation. We expect to need to draw down these funds within the next six months to meet the anticipated capital reimbursement requests for the Prop K program. The Revolver is short-term variable rate financing method and is basically a loan directly from a commercial bank. As of January 20, 2017, $93,664,164 of the Revolver balance was outstanding and $46,335,836 is available to draw upon to fund upcoming Prop K expenditures. Through ongoing discussions with our sponsors (particularly SFMTA) and financial advisors, KNN Public Finance, we have conducted cash flow analyses and anticipate the need to borrow $25 million over the next few months from the Revolver and possibly up to $46,335,835 in total over the next six-plus months to meet our financial commitments. This is not entirely unexpected as we have been tracking some of the largest Prop K projects (largest in terms of the amount of Prop K funds allocated and remaining to be reimbursed), many of which are long-term projects that are now reaching completion or other milestones that will trigger large Prop K reimbursement requests. Among the major cash driver projects are the SFMTA’s Radio Replacement Project, associated Central Control and Communications Projects, and the purchase of new fleets of motor coaches, trolleybuses and light rail vehicles. Consistent with our debt management approach, we would use the Revolver to meet short-term cash needs, providing time for us to prepare to issue long-term debt (e.g. bonds). Based on our analysis of the Prop K major cash flow drivers, we are currently working on a schedule that calls for the Transportation Authority to be ready to issue a long-term bond in Fiscal Year 17/18.
Transportation Fund for Clean Air (TFCA) funds come from a $4 per vehicle surcharge collected by the California Department of Motor Vehicles on motor vehicle registrations in the nine-county Bay Area region. A portion of the funds (40 percent) is available to each county on a return-to-source basis from the Bay Area Air Quality Management District (Air District). These funds are used to implement strategies to improve air quality by reducing motor vehicle emissions in accordance with the Air District’s Clean Air Plan. As the Program Manager for the City and County of San Francisco, the Transportation Authority is required to adopt Local Expenditure Criteria for the programming of the local TFCA funds. Our proposed Fiscal Year (FY) 2017/18 Local Expenditure Criteria (Attachment 1) are the same as those used in past cycles and are consistent with the Air District’s TFCA policies for FY 2017/18. The criteria establish a clear prioritization methodology for applicant projects, including project types ranked by local priorities, emissions reduced, program diversity, project readiness, and past project sponsor delivery. Following Board approval of the Local Expenditure Criteria, we plan to issue the FY 2017/18 call for projects by March 7 and anticipate having approximately $722,400 to program to projects.
The Metropolitan Transportation Commission’s (MTC’s) One Bay Area Grant (OBAG) program directs federal funding to projects and programs that integrate the region’s transportation program with California’s climate law and Plan Bay Area, the Regional Transportation Plan/Sustainable Communities Strategy. About 45% of OBAG funds are directed to congestion management agencies (CMAs), such as the Transportation Authority. Provided that the CMAs comply with rather extensive OBAG requirements (such as requiring that at least 70% of San Francisco OBAG funds must be invested in our Priority Development Areas shown in Attachment 1), CMAs have flexibility to program funds to a wide variety of project types from transit capacity and enhancement projects to pedestrian and bicycle safety projects to street resurfacing. This is the second cycle of the OBAG program (OBAG 2) for which the Transportation Authority has $44.2 million to program over the next five fiscal years (Fiscal Year 2017/18–2021/22). For San Francisco’s $44.2 million, we propose assigning $1.9 million for CMA planning activities (consistent with Cycle 1, augmenting the base amount of CMA planning funds we receive from MTC), $1.797 million for Safe Routes to School (MTC-guaranteed minimum) with priority to non-infrastructure projects (which have limited discretionary funding opportunities), and the remaining $40.489 million for a competitive call open to all OBAG-eligible projects. In addition to MTC’s required selection criteria, we propose retaining most of the Board-approved OBAG Cycle 1 criteria and adding new criteria that reflect the City’s growing need to address core capacity and reliability improvements. Approval of the proposed approach will allow us to release the call for projects in early March 2017. The recommended project list would come back to the CAC for approval in May, to the Board in June and to MTC by its July deadline.
7:15 11. Presentation from the San Francisco Municipal Transportation Agency on Bus and Train Bunching – INFORMATION presentation
This item was initiated at the request of CAC member Peter Tannen who asked for a presentation on bus and train bunching within the Muni system and specifically, on what SFMTA is doing to address this issue. At the January 25 CAC meeting, Jeffrey Flynn, Acting Chief Transit Officer at the San Francisco Municipal Transportation Agency, will provide a verbal report on the extent of bunching within the Muni system and the agency’s approach to addressing it.
7:35 12. Update on Caltrain Service Changes from the Peninsula Corridor Electrification Project – INFORMATION* presentation
The Peninsula Corridor Electrification Project (PCEP) is one of the Prop K signature projects. It will electrify the Caltrain Corridor from San Francisco’s 4th and King Caltrain Station to approximately the Tamien Caltrain Station, and replace diesel-hauled trains with Electric Multiple Unit trains. In order to support construction activities for the PCEP and other capital projects that will occur simultaneously with electrification, Caltrain is proposing weekday and weekend service changes. The proposed weekday timetable changes will take effect on April 10, 2017 and the weekend changes in the summer 2017. The weekday timetable has minimal departure adjustments during peak hours. The weekend timetable will be changed from service every 60 minutes with Baby Bullet service to 90-minute schedules with Baby Bullet service. Caltrain has been coordinating these changes with regional transit partners such as Muni, BART, and VTA. Caltrain is taking public comments regarding the changes through February 2, 2017. At the CAC meeting, Caltrain staff will present the proposed changes and be able to answer any questions.
7:45 14. Introduction of New Business – INFORMATION
During this segment of the meeting, CAC members may make comments on items not specifically listed above, or introduce or request items for future consideration.
7:50 15. Public Comment
8:00 16. Adjournment
* Additional materials
Next Meeting: February 22, 2016
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The nearest accessible BART station is Civic Center (Market/Grove/Hyde Streets). Accessible MUNI Metro lines are the F, J, K, L, M, N, T (exit at Civic Center or Van Ness Stations). MUNI bus lines also serving the area are the 6, 7, 9, 9R, 14, 14R, 21, 47, 49, and 90. For more information about MUNI accessible services, call (415) 701-4485.
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