-25 A-se =, zai,*,:.-.a ;

Transcription

1 Los Angeles County Service Authority for Freeway Emergencies %'a- 6' B d,-a 2. *&a, -j 1-a -25 A-se =, zai,*,:.-.a ; I SAFE BOARD MEETING JUNE 28,2012 SUBJECT: ACTION: ADOPT THE FISCAL YEAR BUDGET RECOMMENDATION Adopt the Fiscal Year (FYI 3) budget in the amount of $16,166,562 for the operation and administration of the Los Angeles County Service Authority for Freeway Emergencies (SAFE). This budget amount includes the annual funding allocations to 1) the agreement with the Public Transportation Services Corporation (PTSC) for direct labor support in the amount of $2,008,912; and 2) two agreements with the Los Angeles County Metropolitan Transportation Authority (MTA) for Freeway Service Patrol (FSP) in the amount of $1,500,000 and ExpressLanes in the amount of $2,000,000. ISSUE SAFE was created in 1988, pursuant to California Streets and Highway Code Section 2550 et.seq. and is responsible for providing motorist aid services in Los Angeles County. In order to fulfill its mission SAFE needs an annual budget and requires administrative support services, which is provided via a MOU, from the PTSC. A summary of the proposed FYI 3 budget is provided as Attachment A. DISCUSSION During FY12, SAFE continued to fund, develop, implement and operate a variety of motorist aid services, programs and activities. These programs, services and activities included: The operation of the Call Box Programs - Mobile #399 and the Kenneth Hahn Call Box System. The operation and continued development of Southern California The funding of the Metro FSP and ExpressLanes project.

2 Continued coordination and support of Metro Big Rig, FSP, ExpressLanes, Nextrip and the Regional lntegration of Intelligent Transportation Systems (RI ITS). The partnering with MTA to obtain a $2 million Federal Transit Administration (FTA) Veterans Transportation and Community Living Initiative (VCTLI) For FY13, SAFE is recommending the funding, implementation andlor operation of the following projects and activities: Continue the operation of the Call Box Programs -the Kenneth Hahn Call Box System and the Mobile #399 program; Evaluate and restructure the Kenneth Hahn Call Box System; Manage, operate and maintain Southern California 51 1; Develop and implement new services under Southern California including the VCTLI focused improvements; Continue funding for the Metro Freeway Service Patrol program; Provide funding to and work with MTA to support the ExpressLanes demonstration project - includes improvements to Southern California 51 1 to provide specific ExpressLanes information; Work with MTA and Caltrans to evaluate and support the continued development and operation of the Regional lntegration of ITS (RIITS) project; Work with our regional partners to identify and implement improvements to existing programs; and develop new services that will improve mobility within the region - including Intelligent Transportation Systems (ITS) projects; The anticipated ongoing operation, funding and implementation of these initiatives will assist Los Angeles County motorists by continuing to provide efficient and effective motorist services at a time when congestion and mobility remain an issue of utmost concern to all Los Angeles County residents. The FYI 3 budget of $16.2 million represents an increase of approximately $1 96,000 or 1 % compared to the adopted FYI 2 budget. Overall, there will be savings in Administration and Programs & Services, offset by an increase in Direct Labor for FYI 3. Specifically, the FYI 3 budget variances for each major budget category are as follows: Catenorv I ncreaselldecrease) Administration $(88,450) Direct Labor $416,207 Programs & Services $(I 31,640) The decrease in Administration is due to the reallocation of As-Needed funding from Administration to Direct Labor. The remaining Administration budget provides funding for insurance, office supplies, and other general items. The increase in Direct Labor is a due to a modification to the overhead and fringe costs allocated to SAFE by PTSC; the reallocation of As-Needed cost from Administration to 2

3 Direct Labor; and the full inclusion of costs associated with the dedicated Senior Contract Administrator. The staffing allocation of 10 Full-Time Equivalents (FTE) for FYI3 is proposed to remain consistent with the approved FYI2 budget allocation. The decrease for Programs & Services is primarily attributable to the proposed merging of the #399 program into the Southern California 51 1 system, completion of roadway signage for the 51 1, and slight decreases 51 1 development and call box maintenance funding. A more detailed summary of each projecffservice as well as a breakdown of the FTE allocation is provided as part of the Five-Year Financial Forecast (Attachment B). FINANCIAL IMPACT Funding in the amount of $16.2 million has been included in the FYI3 proposed budget in project under cost center The Five-Year Financial Forecast demonstrates the financial capacity of SAFE to use its existing fund balance and projected revenue to fully fund the proposed FYI 3 budget. While there is a concern that the current state of the economy will negatively impact SAFE's dedicated vehicle registration surcharge revenues, the forecast that is being presented is a conservative one based upon long-term historical averages. Impacts on Bus and Rail Operatins and Capital Budqet The source of funds is the annual $1.OO surcharge assessed on each vehicle registered within Los Angeles County. These funds are not eligible for MTA bus and rail operating and capital expenditures or to resolve the MTA structural deficit. ALTERNATIVES CONSIDERED The Board has two alternatives. It can (a) decide to not adopt the proposed budget or (b) make a modification, either a decrease or an increase, to the proposed budget. Neither of these options is recommended. To ensure the continued operation of SAFE and its programs an annual budget is required. Without the budget, SAFE will be unable to administer its programs and fulfill its statutory motorist aid mission. Modification of the proposed budget is also not recommended. The proposed budget was developed to ensure that SAFE is sufficiently funded for FYI 3 and has a certain amount of flexibility to adapt to situations and opportunities as they arise. The proposed budget ensures SAFE's ability to properly fulfill its mission and comply with all existing legal and statutory requirements.

4 NEXT STEPS Upon approval of the proposed FYI 3 budget, staff will begin implementing the projects and work for FYI 3. Staff will monitor the budget and projects to ensure SAFE meets all its requirements in a fiscally responsible manner. ATTACHMENTS A. Proposed Fiscal Year Budget Summary B. Five Year Financial Forecast Prepared by: Steve Schupak, Sr. Analyst Kenneth Coleman, Motorist Services Program Manager

5 ~ougla"s/ailing, P.E. Executive birector, Highway Program Arthur T. Leahy Chief Executive Officer

6 ATTACHMENT A Proposed Fiscal Year Budget Summary Total Expenditure Categories Call Box Operations Traveler lnformation System Metro Freeway Service Patrol Metro Services lmprovements Proposed Fiscal Year Budget Summary Comparison FY12 Budget v.s. FYI3 Budget #399 - Motorist Aid Call Box Operations Traveler lnformation System Metro Freeway Service Patrol 1,500,000 1,500,000 Motorist Services Improvements 500, ,000

7 ATTACHMENT B LOS ANGELES COUNTY SERVICE AUTHORITY FOR FREEWAY EMERGENCIES FINANCIAL FORECAST ($000) FISCAL YEAR Projected Registration Surcharge Projected SAFE Fund Balance Administration Programs & Services #399 - Motorist Aid (Mobil Call Box) Call Box Program Traveler Information Metro Freeway Service Patrol

8 Los Angeles County Service Authority for Freeway Emergencies Five-Year Financial Forecast Fiscal Year Notes and Assumptions The FYI 3 Five-Year Financial Forecast has been developed to provide a snapshot of SAFE'S current financial situation and project the impact of the proposed FYI 3 budget to the overall financial condition of SAFE. The forecast is based upon the assumptions and notes listed herein. The use of SAFE funds is strictly limited per California Streets and Highways Code Section 2550 et-seq., which requires SAFE to first use its dedicated funds to support the call box system and then enables the use of funds to support other motorist aid services. The forecast demonstrates that SAFE currently has sufficient financial capacity to fully fund the call box system as well as other motorist aid services as proposed in the FYI3 budget. SAFE has the current financial capability to absorb the impact of the FYI 3 budget for the next five years. However, the forecast also shows a steady decrease in available SAFE funds for each successive fiscal year. Staff will closely monitor the financial status of SAFE and identify and implement solutions to alleviate any potential negative financial situation in a timely manner. This forecast includes the projected costs of operating and enhancing Southern California 51 1 as well as merging the continuing the operations of the call box system and the #399 - Mobile Call Box program into the Southern California 51 1, funding for Metro Freeway Service Patrol operations and funding improvements to motorist services programs. In addition, the forecast also includes the final year funding allocation in support of the ExpressLanes demonstration project. All financial figures will be refined as better information is obtained and more accurate projections can be made. SAFE FUNDS This section provides a summary of the projected funds available to SAFE. Projected Registration Surcharge This refers to the projected annual revenue generated by the $1.00 vehicle registration surcharge. The forecast is based upon historical figures. While the actual revenue obtained from the vehicle registration surcharge has increased over the last couple of years, there is a concern that the current state of the economy will negatively impact new vehicle purchases which may 8

9 in turn impact the overall number of registered vehicles. Therefore, a conservative forecast is being presented based upon long-term historical averages. Overall, the registration surcharge is projected to remain relatively constant for the next five years. Projected SAFE Fund Balance The SAFE fund balance shows the available funds from the end of the previous fiscal year. 0 Projected Interest This references the projected interest income for SAFE, based upon a conservative 2.5% rate of return on the investment base. The investment base is defined as the total funds available less 50% of the projected fiscal year expenditures. The total funds available is defined as the "Projected Registration Surcharge" + "Projected SAFE Fund Balance". Other This category represents any funds to be obtained from claims against individuals who have damaged call boxes and from the sale of any surplus or salvaged inventory. This category also includes reimbursement funding from OCTA in support of the operation of Southern California In FYI3 and FYI4 an advertising revenue sharing factor is included. Based upon determination of the contract award for the Traveler Information System operator, this may or may not be continued based on contractor proposals. Staff will monitor this funding source and update accordingly. EXPENSESIOBLIGATIONS Administration These are funds programmed for general administrative support services and equipment costs. Items such as professional and technical support, printing, travel, training, office supplies, computer equipment, insurance, legal, and other general services required for the administration of SAFE are included in this category. The forecasted cost for administration is projected to fluctuate within a narrow range during the five-year period, with a gradual increase projected for FYI7 and FY18. There is a slight decrease for FY14, compared to the proposed FYI 3 budget request, due to a decrease in the procurement support allocation -this presumes that PTSC will continue to fully support SAFE'S procurement needs. The increases for FYI7 and FYI8 are mainly attributable to an increase in insurance costs and equipment replacement costs.

10 The FYI 3 budget for administrative services is proposed to decrease by $88,450 compared to the adopted FYI2 budget. This decrease is due to anticipated savings of insurance premiums and lower professional services expenses than in FY 12 due to the addition of the full time Sr. Contract Administrator. The labor for the Sr. Contract Administrator and As-Needed support is now included in the Direct Labor category. Direct Labor These funds are programmed to cover the projected costs associated with overhead, salary and fringe benefits SAFE incurs due to its FTEIpermanent staffing needs. During FYI 3, SAFE will continue to fund the program management for both SAFE and Motorist Services Unit. The FYI 3 budget for this category is $416,207 more than FYI2 due to changes in the overhead and fringe benefit allocation rates by PTSC; inclusion of the full cost of the dedicated Senior Contract Administrator, and As-Needed direct labor, overhead, and fringe costs into the category. The FYI 3 FTE allocation is comprised of the following positions: I.OO - Motorist Services Program Manager 1.OO - Motorist Aid Technical Administrator Motorist Aid Program Administrator 2.00 Transportation Planning Manager OO - Transportation Planning Manager IV I.OO - Senior Contract Administrator 1.OO - Senior Administrative Analyst 1.OO - Administrative Aide The FYI3 allocation is consistent with the approved FYI2 allocations. All of the staff provided under this category will be obtained from the Public Transportation Services Corporation (PTSC) via the existing MOU. Costs for outlying years are projected to slightly increase over the forecast period. The forecast predicts no increase for FYI 3; a 1 % increase for FY14; and 2% annual increases for FYI 5 to FYI 7. Programs & Services Funds programmed in direct support of the programs, projects and services operated by or to be funded by SAFE. The programs and services SAFE proposes to support during FYI 3 include #399 - Mobile Call Box program; Metro Freeway Service Patrol operations; the Kenneth Hahn Call Box System, Southern California 51 1, Motorist Services Improvements and the ExpressLanes demonstration project. 10

11 The FYI 3 budget for this category has decreased by $131,640 compared to the adopted FYI2 budget. This decrease is primarily attributable to savings associated by merging the Call Box call center & call answering services into the Southern California 51 1 system, and decreased contracted maintenance costs for Call Box System. Funding for Programs & Services is projected to decrease gradually over the next three fiscal years (FYI4 - FY16), then rise slightly in FYI 7 & FYI 8 due to anticipated increase in the Traveler Information System. As funds become available andlor as new motorist aid projects are identified, SAFE will evaluate the ability to fund andlor operate new projects and incorporate the projects into the forecast as the Board authorizes them. The following is a breakdown of each program and service to be funded andlor operated by SAFE during N13: #399 - Mobile Call Box Funds programmed to support the operation of the #399 - Mobile Call Box program. In FYI3 there are no forecasted costs associate with this program. All costs associated with this program have been incorporated into Southern California Call Box Program Funds programmed to cover the costs to operate, maintain and improve the Kenneth Hahn Call Box System. The FYI3 funding for the Call Box Program is proposed to decrease by $31,400 compared to the adopted FYI2 budget. This decrease is attributable to lower call volumes and lower maintenance cost. Operational cost to fund the call box system include all day-to-day requirements to operate and maintain the call box system and is based on contractual and supplier costs to supply the services and parts to operate and maintain the system. Items include call answering services, cellular service and maintenance operations. Funding for call box operations is projected to remain stable during the course of this forecast; however, this may change as staff will be conducting an evaluation of the system in FY13. As a result of this evaluation, it is anticipated that there will be restructuring of the call box system. The impact of the anticipated restructuring has not been factored into this forecast due to the level of uncertainty and will be entered into the forecast at a later time.

12 Traveler Information Svstem - Southern California 51 I Funds programmed to support the continued development and operation of Southern California Southern California 51 1 is a regional traveler information system operated in partnership with MTA, the Orange County Transportation Commission, the Ventura County Transportation Commission, CHP and Caltrans. The system provides individuals with the ability to obtain traffic, transit, commuter services and other general traveler information via their phone or the Internet. The system was deployed in June 2010 as a "betan system and is now operating as a fully functional system. With the deployment, the Los Angeles County region joins over 35 other 51 I systems in operation throughout the nation. Since the June 2010 launch, Southern California 51 1 has handled over 4.5 million phone calls and 71 8,000 web visits. The system is still in the infancy of its operation and near term enhancements and improvements are both underway andlor planned to: improve the quality of the 51 1 phone system; improve the performance of the website; expand the capability of the real-time transit information (Nextrip); improve the quality and amount of data and information available; develop a general emergency platform for 51 1 to support in emergency situations; improve the alert and announcement information; development of the 51 1 mobile application Veterans Administration One Call One Click application and a variety of other items The FYI 3 allocation for this system is proposed to decrease by $1 25,000 compared to the FYI 2 allocation; however, this decrease will not negatively impact the ability of the program to operate or improve. The FYI3 request includes funds for the continued development, deployment and operation of the system. The decrease is due to the transition of the system from the initial higher cost development stage to the lower cost operation and system improvement stage. Allocations for FYI 3 and beyond remain relatively stable and include system enhancements, support, operational and marketing costs. Costs are also somewhat offset by the impact of the guaranteed revenue offsets that are contained in the contract to operate and maintain Southern California Staff will closely monitor 51 1 operations to ensure that the highest quality service is provided to the public and to ensure that the system adapts to meet the needs of the region. Metro Freewav Senlice Patrol Operations Funds programmed to assist MTA with the operation of the Metro Freeway Service Patrol (FSP). Funding of the FSP program from SAFE funds is

13 authorized as FSP is a motorist aid service. Based on past usage, SAFE has allocated up to $1.5 million annually and will continue for the five year period of this forecast in support of FSP operations. Motorist Services Improvements Funds programmed to enable SAFE to support improvements to existing motorist services programs and/or develop new services. For FYI 3, these funds may be used to support the implementation of the restructuring of the FSP; develop and deploy new non-planned improvements to Southern California 51 1 ; support the development of new ITS related projects which will reduce congestion and improve mobility; and a variety of other motorist services programs. As an example, in FYI 1 SAFE worked with MTA to support the development and deployment of MTA's Nextrip service; in FYI2 SAFE began creating a mobile application for the Southern California 51 1 system. SAFE made improvement to 51 1 to enable transit users to call and obtain information about when the next bus will be at their bus stop. In addition, SAFE provided MTA with funding in support of the production of new bus stop signs in support of the Nextrip service. Another example is the partnership with the City of Los Angeles to have Southern California 51 1 support their intelligent parking system to be deployed in the downtown area as part of the Congestion Pricing program. The City is requesting to use 51 1 to dispense information about parking availability and rates. This will require additional resources on SAFE'S part to obtain the data and develop an appropriate format to display and distribute the information. SAFE is also working with MTA to determine the best way to incorporate information about the ExpressLanes demonstration project into When an opportunity, such as the aforementioned items arise SAFE will use these funds to implement the necessary and approved improvements. The funding for service improvements is requested to increase slightly in FYI3 and remain stable through FYI 8. Funding for this sub-category will be evaluated on an annual basis and the allocation will be dependent upon available funds and identified needs. Ex~ressLanes Demonstration Proiect Funds programmed to assist MTA with the deployment and operation of the ExpressLanes demonstration project. This is a two-year allocation ($2 million per year) whereby SAFE funds will be used to purchase in-vehicle transponders and provide administrative support to the project. This funding was approved by the Board in May, 201 I and the Funding agreement with MTA was executed in July 1,