ACTAMeeting of the

Governing Board

April 11, 2019

Item 3

New MOW Agreement

New MOW Agreement

The Operating Agreement provides that the Ports and Railroads select the Corridor Maintenance Contractor.

ACTA then endeavors to enter into an agreement with the selected Contractor on the business terms specified by the Ports and Railroads.

In April 2019, the Ports and Railroads unanimously approved the Contractor selection, business terms of the Agreement, and the first year scope and budget.

The ACTA Board is requested to approve the execution of the Agreement with RailWorks Track Services.

New MOW Agreement

Selection Process:

August 15, 2018, ACTA issued an RFP

October 3, 2018, four proposals were received by this deadline

Proposals were evaluated by a 4-member panel, consisting of rep from each port and each railroad.

November 7, 2018, panel conducted interviews of the 4 proposers

Panel unanimously scored RailWorks Track Services Inc. as the highest ranked firm.

New MOW Agreement The term of the new Maintenance Agreement is approximately 5 years (on or

about May 1, 2019 through April 14, 2024) with an additional 5-year option.

The contract value increases each year based on the Approval Annual Budget negotiated and approved by the Ports and Railroads.

For CY 2019, per completed negotiations, the existing Contractor will perform services ($3.3M) through on or about May 31, 2019 including a 30-day transition.

New Contractor will perform services from on or about May 1 through December 31, 2019 (First Contract Year - $5.4M).

Any uncompleted scope and unused budget by the existing Contractor on or about May 31, 2019 will be transferred to the new Contractor for CY 2019.

Item 4 & 5

Dispatching Amendmentand

Police & Security Services Amendment

Police & Security AmendmentDispatching Amendment

4th Amendments extending the Agreements through April 14, 2019 were approved by the Ports, the Railroads, and ACTA in October 2018

The proposed 5th Amendments extending the Agreements through April 14, 2020 were approved by the Ports and Railroads in March 2019

ACTA Board approval is sought to execute the 5th

Amendments

Item 06

FY20 Preliminary Budget

Budget Assumptions

Projected revenues based on:• 2.5% CPI fee increase• Modest but stabilizing decline in historical ratios for

loads/empties and import/export reflecting diversion of discretionary TEUs

Compensation adjustment (3.0%) CPI and merit included

ACTA staffing level increasing by 1 (A/P Technician) to 10 full-time, 1 part-time

ACET staffing provided to meet needs of operations and field support– 6 full-time, 1 part-time; plus miscellaneous specialty support as needed

Budget Assumptions Core ACTA functions include corridor maintenance,

revenue collection, payment of obligations, and servicing of debt

New professional service contracts result from recent RFPs and pending RFPs may result in new providers and minor budget changes – scope of professional service contracts has not changed or grown

M&O budget figures based upon 2019 calendar year budget approved through the Notice of Mutual Agreement process in early March adjusted for new MOW contractor

San Pedro Bay Port TEUsCompared to ACTA Revenue

Operating Budget SummaryRevenue

(x1000)

FY 2020 FY 2019 FY 2019Budget Estimated Actual Budget

San Pedro Bay TEUs

ACTA TEUs

18,084

4,466

17,643

4,404

17,536

4,913

Operating Revenue

Use Fees and Container Charges $ 115,288 $ 110,107 $ 112,204

Maintenance-of-Way Charges 6,380 5,343 5,541

Total Operating Revenue $ 121,668 $ 115,450 $ 117,745

Other Revenue 8,020 4,930 8,391

Total Revenue $ 129,688 $ 120,380 $ 126,136

Net Administrative Expense Comparison

$0

$1

$2

$3

$4

$5

$6

$7

$8

FY10Actual

FY11Actual

FY12Actual

FY13Actual

FY14Actual

FY15Actual

FY16Actual

FY17Actual

FY18Actual

FY19Estimated

Actual

FY20Budget

$7.9

$5.9 $5.7

$5.0

$4.1 $4.4 $4.5

$5.5 $5.3

$5.5

$6.7

Millions

-26.1% -3.3% 8.2%-18.7% 22.2% -4.0%

Draft 04//11/19 Page 5

-12.0% 2.3%

$7.1 $6.0 $4.8$4.4 $5.9 $6.3$5.9 $5.2Budget $9.0 $6.1

4.6% 20.7%

Administrative Spendingby Expense Type

FY 2020 FY 2019 FY 2019Budget Estimated Actual Budget

Salaries $ 1,701,298 $ 1,543,829 $ 1,530,728 Benefits 898,232 642,013 695,084 Office Expenses 450,476 406,093 435,625 Other Management Expenses 80,995 48,523 73,550 Information Technologies 311,794 298,962 313,299 Bank and Investment 172,500 147,769 151,000 ACET Administrative Support 1,434,664 1,341,404 1,418,026 Audit 179,872 157,330 158,290 Legal 900,000 657,887 850,000 Governmental Affairs 76,385 72,000 144,160

Professional Services 476,253 221,458 331,283 Total Administrative Expenses $ 6,682,468 $ 5,537,268 $ 6,101,045

Professional Services Budget(x1000)

FY 2020Budget

FY 2019Estimated

Actual

FY 2019Budget

Revenue Assessment Valuation System (RAVS) System Maintenance & System Upgrade $ 359.7 $ 153.6 $ 169.7

Annual Rating Agency Reviews 43.7 25.2 44.0

Financial Advisor 40.0 29.8 50.0

Actuarial Services for Retirement Benefits 20.0 3.9 8.5

Emergency Field Exercises Planning, Coordination, & Oversight 12.5 8.8 8.8

Accounting System 0.0 0.0 50.0

Miscellaneous 0.3 0.2 0.3

Total Professional Services $ 476.2 $ 221.5 $ 331.3

Item 7

PCH Encampment

PCH Encampment

Through a Caltrans Co-op Agreement, ACTA acquired multiple properties in Wilmington for the PCH Project.

These properties will be turned over to the State in the next several months.

A 400’ x 70’ encampment exists on a cluster of these properties on the southwest side of the bridge.

Encampment occupants have removed some fencing and broken the main gate for access to the property.

Several mobile homes, dismantled cars, and functioning cars are parked on the property.

PCH Encampment

Encampment occupants apparently are using the site for commercial purposes including the dismantling of vehicles and stockpiling of parts.

Complaints have been made by local business along the adjacent alleyway concerning encampment activities.

LA Council District 15 has requested ACTA’s assistance in this matter.

With the Board’s direction, staff can arrange activities to clean up and remove the encampment with security assistance from local law enforcement.

PCH Encampment

PCH Encampment

Item 8

Performance Update

9.3%

6.1%

12.7%

4.2%

-4.4%

-15.9%

15.7%

1.9%0.3%

3.0% 2.4%

-3.2%

3.4%

5.4%3.7%

-5.7%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019**

Gai

n/ L

oss

San Pedro Bay Ports Loaded Container TEU Volumes (yr/yr)2003-2019

* San Pedro Bay Ports Loaded TEUs ** 2019 - CYD through February 2019

9.07M* 9.62M 10.84M 11.30M 11.06M 11.32M 10.97M 11.34M10.80M 9.08M 10.51M 10.71M 10.74M 12.40M11.95M

Port Container Throughput (TEUs) – Feb 2019

POLA POLB Combined

Feb-19 %Change* Feb-19 %Change* Feb-19 %Change*

Imports 348,316 -9.1% 302,865 -11.5% 651,181 -10.2%

Exports 142,555 -9.5% 105,287 -19.6% 247,842 -14.1%

Total Loaded 490,870 -9.2% 408,152 -13.7% 899,022 -11.3%

Empty 214,436 16.3% 188,465 -0.1% 402,901 8.0%

Total 705,307 -2.7% 596,617 -9.8% 1,301,924 -6.1%

YTD %Change* YTD %Change* YTD %Change*

Imports 778,238 -3.4% 626,703 -6.0% 1,404,941 -4.6%

Exports 287,548 -6.5% 222,575 -11.5% 510,123 -8.8%

Total Loaded 1,065,786 -4.3% 849,278 -7.5% 1,915,064 -5.7%

Empty 491,970 17.1% 404,625 0.8% 896,595 9.1%

Total 1,557,756 1.6% 1,253,903 -5.0% 2,811,659 -1.5%

* Relative to same period in 2018

Performance ComparisonFebruary ’19 vs. ’18, CY19 & FY19 Year to Date

Railroad Self-Assessment Revenue

’19 ’18 Change

Revenue $8.8 M $9.0 M - 2.2 %

Calendar Year to Date $18.5 M $18.3 M 1.2 %

Fiscal Year to Date * $73.7 M $71.9 M 2.6 %

Operations

’19 ’18 Change

Trains (Daily) 1,036 (37.0) 1,058 (37.8) - 2.1 %

Calendar Year to Date 2,269 (38.5) 2,232 (37.8) 1.7 %

Fiscal Year to Date 9,266 (38.1) 9,089 (37.4) 1.9 %

* Note: Does not include reconciliations / adjustments for fiscal year-end.

Performance Use Fees & Container ChargesFebruary ‘19 vs. ‘18, CY19 & FY19 Year to Date

Operations – On Corridor (Use Fees)

’19 ’18 Change

TEU’s * 397,024 (7,974) 380,561 (7,643) 4.3 %

Calendar Year to Date 842,250 (8,028) 781,305 (7,447) 7.8 %

Fiscal Year to Date 3,377,757 (7,817) 3,158,763 (7,310) 6.9 %

Operations – Around Corridor (Container Charges)

’19 ’18 Change

TEU’s * 18,775 (377) 28,503 (572) - 34.1 %

Calendar Year to Date 39,306 (375) 60,120 (573) - 34.6 %

Fiscal Year to Date 170,214 (394) 252,259 (584) - 32.5 %

Operations – Combined

’19 ’18 Change

TEU’s * 415,799 (8,351) 409,063 (8,215) 1.7 %

Calendar Year to Date 881,556 (8,402) 841,426 (8,020) 4.8 %

Fiscal Year to Date 3,547,971 (8,210) 3,411,022 (7,894) 4.0 %

* Note: Numbers in ( ) are the Average Daily Containers, Daily TEU’s ÷ 1.78 = Containers.

2002 2003 2004 2005 2006 2007 2008 2009 201039 40 44 47 55 49 44 36 39

2011 2012 2013 2014 2015 2016 2017 2018 201942 42 45 47 38 34 37 38 38

Num

ber o

f Tra

ins

Alameda Corridor Train Counts

* Corridor Capacity 150 Trains per Day

Average Daily Trains*:

112.2

Use Fees & Container Chargesas of February 28, 2019

ActualBudget

54.7 62.0 65.580.5

95.2 94.085.3 80.5

93.2 97.3 99.4109.0 105.5 103.6 102.8 112.9

75.3

0

20

40

60

80

100

120

FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19

Mill

ions

Fiscal Year

Annual Performance ComparisonACTA Revenue * Containers *

(Containers = TEUs/1.77)

5.4% 3.3%

35.6

22.9

12.7

64.3

71.3

56.2

51.2

20.1

37.8

18.4

42.7

21.6

72.3

91.296.1

89.8

18.9

69.0

20.8

74.2

21.9

75.6

63.6

12.0

71.8

15.4

87.2

80.0

13.2

93.2

84.0

13.3

97.3

91.2

12.3

103.5

Millions

(1,53

8)(6

,627)

(1,85

1)(7

,213)

(1,89

9)(5

,712)(1,84

2)(1

,832)

(4,15

6)(2

,090)

(4,72

6)

(3,66

5)

(7,52

7)(1

,885)

1.43M

2.19M

2.49M

2.78M

3.44M 3.31M

2.99M

(949

)(5

,438)

2.33M (1,24

2)(6

,307)

2.76M

(1,04

3)(6

,810)

2.87M

(6,59

2)2.7

7M(9

66) (873

)(6

,931)

2.85M

Rev. 2-6-2019

Thousands

96.6

11.9

108.5

(7,37

3)(8

22)

2.99M

92.1

10.2

102.4

(701

)(7

,203)

2.89M

88.8

99.2

10.4

(6,52

2)(7

06)

2.65M

95.9

105.6

9.6

(7,17

8)(6

39)2

.85M

Note: - #s in ( ) = Daily Average for Year- #s above line trucked around Corridor subject to Container Charge- #s below line travels on the Corridor subject to Use Fee

* Railroad Self Assessed

104.0

111.3

7.2

(7,61

8)

(459)

2.95M

ACTA Percentage of the Ports’ Containerized Volume Imports Exports Loaded Empties Total

2004 41.8% 43.5% 42.2% 14.2% 33.6%

2005 40.3 47.4 42.0 17.6 34.2

2006 44.1 51.3 45.9 20.7 38.0

2007 42.3 51.0 45.0 16.3 36.8

2008 41.1 47.2 43.1 14.3 36.0

2009 37.9 49.0 41.6 9.9 34.2

2010 36.8 49.0 40.1 10.0 32.9

2011 38.6 48.8 42.0 10.6 34.6

2012 36.9 47.6 40.5 9.8 33.1

2013 37.3 47.5 40.6 9.7 33.1

2014 38.0 46.3 40.6 13.2 33.6

2015 36.5 43.8 38.6 15.6 32.0

2016 33.3 43.1 36.2 9.3 28.8

2017 31.9 43.9 35.3 10.4 28.0

2018 30.6 44.4 34.4 9.5 27.1

‘06-’18 Change - 13.5 - 6.9 - 11.5 - 11.2 - 10.9Source: Alameda Corridor Transportation Authority

-100.0

0.0

100.0

200.0

300.0

400.0

500.0

600.0

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

Debt Service Comparison

Before Refunding After Refunding Delta

4.75% Increase 5.75% Increase 7.75% Increase

$ in

Mill

ions

Fiscal Years

Debt Service Comparison

(with 1.75% Average CPI Increase)

ACTA projected revenue curves for 3, 4, & 6% port loaded container growth, plus 1.75% CPI fee increase.