WAKE TRANSIT PLAN Transit Planning Advisory Committee TPAC

WAKE TRANSIT PLAN Transit Planning Advisory Committee TPAC REGULAR MEETING May 12, 2021 9: 30 AM

I. Welcome and Introductions Ben Howell, TPAC Chair

II. Adjustments to the Agenda Ben Howell, TPAC Chair

III. General Public or Agency Comment Ben Howell, TPAC Chair

IV. Approve TPAC Meeting Minutes Attachment A Requested Action: Consider approval of the March 2021 draft TPAC meeting minutes Ben Howell, TPAC Chair

V. FY 2022 Wake Transit Work Plan - Project Agreement Groupings and Reporting Deliverables Attachment B Steven Schlossberg, Go. Triangle

v FY 2022 Work Plan Project Agreement Groupings and Reporting Deliverables TPAC Meeting May 12, 2021

FY 22 Work Plan Project Agreement Groupings and Reporting Deliverables Above does not include projects/amounts in reserve

FY 22 Work Plan Project Agreement Groupings and Reporting Deliverables Operating Example

FY 22 Work Plan Project Agreement Groupings and Reporting Deliverables Capital Example

FY 22 Work Plan Project Agreement Groupings and Reporting Deliverables are standardized per the TPAC endorsed policy when possible

V. FY 2022 Wake Transit Work Plan - Project Agreement Groupings and Reporting Deliverables Requested Action: Consider recommending approval of the FY 2022 Wake Transit Work Plan Project Agreement Groupings and Reporting Deliverables to the Wake Transit Governing Boards.

VI. Policy Framework for Use of Wake Transit Funds to Acquire Real Property Attachment C Bret Martin, CAMPO

Purpose of Policy Framework Clarify Requirements and Responsibilities of Project Sponsors and Lead Agencies For: • Submission of Information for TPAC Review of Requests • Maintaining and Reporting Certain Information for Applicable Real Property • Allowable Methods for Disposal and Use of Applicable Proceeds • Methods for Incorporating Tenets of Policy Framework into Program. Level Processes for Transit Plan Implementation

Applicability • Acquisition and management, use and disposition of real property acquired using Wake Transit Tax Revenues • Does not apply to real property leasing or acquisition of personal property, real property easements, or other nonpossessory interests • Transit centers, maintenance facilities, transit stations, park-and-ride facilities, laydown areas, admin offices, ROW for fixed-guideway facilities • Applicable federal/state law controls in any instances of conflict

Applicability Threshold(s) All Individual Parcels or Combination of Contiguous Parcels That Exceed: • 0. 10 acre (~4, 350 square feet) AND >$50, 000 value EXCEPT • Real property to exclusively support streetside bus stop or bus transfer point infrastructure that does not exceed 0. 50 acre (~21, 780 square feet) AND >$75, 000

Information for TPAC Review 1) Necessity 2) Location and Size 3) Property Value 4) Funding Sources 5) Title Issues 6) Environmental Issues 7) Displacements 8) Incidental Uses To be submitted with project funding request forms or applicable amendment request forms beginning July 1 st

TPAC Standard of Review • Need – Is acquisition necessary as opposed to other alternatives? • Cost – Are the costs reasonable for the project’s relative level of priority and compared to other options? • Location – Does the location comport with the needs of the project and its role in implementing the Wake Transit Plan

Real Property Inventory and Utilization Plan 1) Work Plan Project ID 2) Property Location 3) Summary of Conditions on Title 4) Original Acquisition Cost 5) Appraised/Assessed Value and Appraisal Date 6) Wake Transit Financial Participation Percentage and of Other Funding Partners 7) Description of Existing Improvements 8) Current and Planned Use of Property and Proposal for Disposition, if Applicable Minimally Update and Report Annually with 4 th Quarter Progress Report Applies to All Wake Transit-Funded Property, Regardless of When Funding Was Requested

Disposal Methods/Use of Proceeds • No Remaining Eligible Use = Dispose of Property Within 3 Years in Accordance With Available Methods • Method #1: Sell and Reimburse Wake Capital Fund (Method #1) • Method #2: Offset Within Same Distinct Wake Transit-Funded Project • Method #3: Sell and Keep Net Proceeds in Open Project • Method #4: Transfer Property to Other Eligible Project • Method #5: Retain Title with Buyout • Applicable federal/state rules control in any instances of conflict when federal/state interest in subject property

Sell and Reimburse Wake Capital Fund • Competitively market, sell property, and reimburse Wake Transit Capital fund with net proceeds • Reimburse Wake Transit at same % used to acquire property • Net Proceeds: Amount realized from sale minus actual reasonable selling expenses (e. g. , marketing, brokerage, and transaction costs) and other necessary expenses for repairs to make property saleable • Reimburse net proceeds within 1 year of settlement

Offset Within Same Defined Wake Transit-Funded Project • Competitively market, sell property, and apply net proceeds to cost of replacement property under same project • Really meant for projects involving >1 parcel/parcel grouping • Work Plan amendment required for projects in which a single parcel or grouping of parcels was acquired for: § Transit center/station § Maintenance facility § P&R facility • May not hold proceeds for >1 year from settlement before using for replacement property

Sell and Keep New Proceeds in Open Project • Competitively market, sell property, and apply net proceeds to reduce gross cost of same project • Beneficial For: § Project sponsors with projects involving multiple property purchases or with multiple project actions and phases wrapped into single implementation element § Property to be acquired for construction staging and laydown that will be sold when those activities are complete but the overall project is still open • Only available for the above-mentioned cases • May not hold proceeds for >2 years from settlement • If net proceeds >original Wake Transit budget, reimburse difference

Retain Title With Buyout • Retain property and compensate Wake Transit Capital • Reimburse Wake Transit at same % used to acquire property • Fair market appraisal required and reimbursement to occur within 1 year of appraisal

Fair Market Value Exemption • Applies to Sell and Reimburse Capital Fund and Retain Title with Buyout Methods • For publicly supported affordable housing or other transitoriented or –supportive land uses • Reimburse Wake Transit same amount of $$ used to acquire, regardless of gain in value

Method of Institutionalization Applicable Project-Level Agreements to Require Compliance with Adopted Policy Framework

VI. Policy Framework for Use of Wake Transit Funds to Acquire Real Property Requested Action: Consider recommending approval of the Policy Framework for Use of Wake Transit Funds to Acquire Real Property to the Wake Transit governing boards.

VII. FY 2021 Project Progress and Expenditure Reviews Attachment D Bret Martin, CAMPO

Project Progress and Expenditure Review • In 2019, TPAC Endorsed Framework for Review of: § Work Plan Project Reporting Deliverables Recommended Scope, Funding, or Schedule Changes § Project Activity and Expenditures Steps to Recover Project Schedules or Modify Projects Funding Allocations of Scopes of Work • Project Progress and Expenditure Reviews with City of Raleigh, Town of Cary, and Go. Triangle in March 2021 69% 57% • Identify Issues with Project Progress/Schedules and Allocated Budget Amounts and Develop Solutions

Program-Level Concerns Identified § Increases to Assumed Costs and New Projects Not Accounted for in Programming § Remaining 10 -Year Capital Liquidity Above Required Fund Balance Minimum = ~$23 M o Could Be Problematic for Future Critical Capital Projects § Appearance of Inflated Project Budgets for Operating and Capital Projects § Appearance of No or Very Slow Progress on Projects or Project Phases Compared to Initial Programming o Issues with Project Readiness for Capital Projects – Slow Progress on Prior Project Phases or Allocations § Appearance of Issues with Unrealistic Schedules for Phases of Project Life Cycles

Total Operations Spending Vs. Budget $30 000 $26 298 975 $25 000 $20 000 $17 692 480 $14 980 320 $15 000 $12 205 201 $10 000 69% $5 000 57% $0 FY 2019 Budgeted/Encumbered FY 2019 Spent FY 2020 Budgeted/Encumbered FY 2020 Spent

What Can $16. 8 Million Buy? These Two Years of Unspent But Encumbered Program Operating Funds Can Buy: § ~9. 5 Years of the Community Funding Area Program § 27 Fixed-Route Buses § This Pattern Through 2030 Gives Us More Than the Full Cost of New Bern BRT ($84 M) 69% 57%

FY 2018 Bus Infrastructure Spending Vs. Budget After 2 Years $9 000 $8 000 $7 878 000 $7 000 $6 000 $5 000 $4 000 $3 000 000 $2 427 619 69% 57% 31% $1 000 31% 51% $0 FY 2018 Budgeted/Encumbered Expensed After 2 Years (By End of FY 2019)

FY 2018 Bus Infrastructure Spending Vs. Budget After 3 Years $9 000 $8 000 $7 878 000 $7 000 $6 000 $5 000 $3 987 379 $4 000 $3 000 $2 000 69% 31% $1 000 51% 57% 51% $0 FY 2018 Budgeted/Encumbered Expensed After 3 Years (By End of FY 2020)

FY 2019 Bus Infrastructure Spending Vs. Budget After 2 Years $9 000 $8 151 624 $8 000 $7 000 $6 000 $5 000 $4 000 $3 000 $2 000 69% 31% $1 000 $1 186 146 15% 57% 51% 15% $0 FY 2019 Budgeted/Encumbered Expensed After 2 Years (By End of FY 2020)

Why is this a Problem? • Encumbering Way More Than Will Be Spent Adversely Impacts Financial Planning for Future-Year Investments o Inflated budgets result in Inflated Expenditure Assumptions for planning purposes o Leads planners to unnecessarily delay, eliminate or reduce assumed investment in other projects that could otherwise be funded earlier • Encumbering Way More Than Will Be Spent Within Certain Timeframes Unnecessarily Ties Up Cash That Could Be Used for Other Projects That Are Ready to Move Forward o Cash should be as nimble and readily available as possible to support projects that are moving forward or that have unforeseen funding challenges, especially with 57% tightening 69% financial environment • Erodes Public/Stakeholder Trust in our financial management and in what we say we can/cannot do with public funding

Overall Findings of Review • Disconnect Between Timing of Funding Allocations and Realistic Timelines for Initiation of Project Performance o Some allocations encumbered for more than a year before performance on project • Disconnect Between Anticipated Pace of Project Delivery Vs. Realistic Schedule Outcomes • Some Annually Recurring Project Allocations Better Suited to Being Every 2 - to 3 -Year Capital Project Allocation • Long Delays Between Actual Performance and Documentation of Performance is Provided by Hired Contractors Delays in Project Sponsor Posting of Expenses 69%Budget Lines Not Tied to Wake Transit Funding 57% • Expenses Erroneously Charged to Other Internal • Operating Projects Anticipation of Higher Costs Than What Actually Transpires • Some Projects Profoundly Overbudgeted and Can Be Reduced

Some Possible Solutions Operating Projects • Have Project Sponsors Review Recurring Budgeted Amounts Every Year and Strive to Align Budget Within 85% of Actual Expenses (Using Prior 2 Years of Data) o Still allows for some project cost contingency o 10 -Year Impact +$28. 3 M (Using FY 2019 Performance) • Change Some Budgets to Match Actual Timing Needs Capital Projects • Unencumber Excess Project Allocations and Those That Will Not Be Used Within Next Year o Ex: $5 M allocation for a project with vendor contract for $3 M 69% • More Due Diligence for Planning-Level Project Cost Estimation 57% • Put Future Bus Infrastructure Project Encumbrances on Hold (Still Programmed) o Until prior allocations or phases upon which the project is building are X% expended

VII. FY 2021 Project Progress and Expenditure Reviews Requested Action: Receive as Information

TPAC Member Roll Call Vote: Action Item #1: Approve the April TPAC Meeting Minutes Action Item #2: Recommend approval of the FY 2022 Agreement Groupings and Reporting Deliverables Action Item #3: Recommend adoption of the Policy Framework for Use of Wake Transit Funds to Acquire Real Property

VIII. Subcommittee Reports Budget & Finance May 28 th, 10 -11: 30 am DATE CHANGE Planning & Prioritization May 25 th, 1: 30 -3 pm Community Engagement May 27 th, 1: 30 -3 pm

XII. Other Business Any new or old business to discuss?

XIII. Governing Board Activities The FY 2021 -2030 Wake Transit Plan has been adopted! Both CAMPO and Go. Triangle governing boards voted to adopt the updated Wake Transit Plan at their April meetings. Find the new plan and other associated materials on the CAMPO Website on the Wake Transit Webpage and listed within the TPAC document library. Go. Forward “Plans” webpage will hopefully be updated soon.

XIV. Adjourn Next TPAC Meeting: June 9, 2021 @ 9: 30 am Notice: No July TPAC Meetings