MINUTES OF REGULAR BOARD MEETING OF SOUTHEASTERN ...

MINUTES OF REGULAR BOARD MEETING OF

SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY JULY 27, 2017

The Regular Meeting Pennsylvania Transportation 27, 2017 at 3:00 PM, in the Chairman in the Chair.

of the Board of the Southeastern Authority was held on Thursday, July Board Room of the Authority, with the

Attending the meeting were the following Board Members:

Pasquale T. Deon, Sr., Chairman Thomas E. Babcock, Vice Chairman Michael A. Carroll, P.E. Beverly Coleman Robert D. Fox, Esquire Honorable Stewart J. Greenleaf (via telephone) Kevin L. Johnson, P.E. (via telephone) John I. Kane Obra S. Kernodle, IV Daniel J. Kubik Honorable Kenneth Lawrence William J. Leonard, Esquire (via telephone) Honorable Charles H. Martin William M. Mcswain (via telephone) Michael A. Vereb

Present from the staff:

Jeffrey D. Knueppel, General Manager Richard G. Burnfield, Deputy General Manager/Treasurer Stephen A. Jobs, Controller Carol R. Looby, Secretary Kim Scott Heinle, AGM, Customer Service Ronald G. Hopkins, AGM, Operations Francis E. Kelly, AGM, Government & Public Affairs Robert E. Lund, AGM, Engineering, Maintenance & Construction Stephanie Deiger, AGM, Employee Development Relations C. Neil Petersen, Esquire, Deputy General Counsel

Mr. Deon called the Regular Meeting of the Board to order. He said the Special Meeting, which was noticed, was cancelled. Mr. Deon announced that Senator Stewart Greenleaf, Kevin Johnson, William Leonard and William Mcswain would be participating by phone.

Pledge of Allegiance was observed.

Mr. Deon then welcomed Michael Carroll, Deputy Managing Director for the City of Philadelphia, to the SEPTA Board. He announced that the Board met in Executive Session just prior to the meeting to discuss legal matters.

Minutes of Regular Board Meeting July 27, 2017

Mr. Deon stated that if there were speakers who wished to address agenda items they would be called before the Board voted on the i tern and asked that they limit their remarks to two minutes. He said speakers wishing to address i terns not on the agenda would be called after the regular business of the Board was completed.

Approval of Minutes

Mr. Deon entertained a Motion regarding the Minutes of the June 22nct Regular Board meeting, which had been circulated. Mr. Babcock moved, Mr. Martin seconded, and the Minutes were unanimously approved.

Financial Report

Mr. Burnfield stated that with the end of the fiscal year, his report would focus on year-end results. He reported that in Fiscal Year 2017, revenue fell below budget due to the Silverliner V fleet defect, the six-day transit strike and the increased competition from ridesharing.

Mr. Burnfield reported that with revenue falling below budget, staff carefully managed operating expenses throughout the year. He stated expenses were under budget for the year primarily driven by reductions in medical, propulsion power and fuel.

Mr. Burnfield reported that the Authority with a surplus of $207, 000. He said this was consecutive year of balanced budgets.

ended the year the eighteenth

Mr. Deon entertained a Motion to adopt the Financial Report. Mr. Lawrence moved, Ms. Coleman seconded and it was unanimously adopted.

The June Financial Report is received and filed and is attached to these Minutes as Exhibit "A."

Mr. Deon then called for speakers wishing to address agenda items. There was no response.

Mr. Deon then entertained a Motion cancellation of the August Regular and Special Mr. Babcock moved, Mr. Kubik seconded and Resolution was unanimously adopted.

regarding the Board meetings.

the following

I . ELECTION NOT TO HOLD A REGULAR MEETING OF THE BOARD IN THE MONTH OF AUGUST 2017 AND CANCELLATION OF THE REGULAR AND SPECIAL MEETINGS OF THE BOARD SCHEDULED FOR AUGUST 24, 2017

"WHEREAS, under Section 3. 02 of the By-Laws the Board by resolution may elect not to hold a regular meeting in the month

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of July or August; and

WHEREAS, the Board desires not to hold a regular meeting in the month of August 2017.

NOW, THEREFORE, BE IT RESOLVED, that the Board will not hold a regular meeting in the month of August 2017.

FURTHER RESOLVED, that the Board hereby cancels the regular and special meetings that are scheduled to be held on August 24, 2017."

Consent Calendar

Mr. Deon consisted of:

then presented the Consent Calendar, which

"Termination Prudential Trust Manager;"

of Sterling Advisors and Appointment of Company Collective Trust as Investment

"Amendment of the Fiscal Year 2017 Operating Budget and Allocation of Funds to the Service Stabilization Fund;"

"Authorization to Renew Purchase of Stop Loss Insurance for Medical and Prescription Drug Benefits with AGI/National Union Fire Insurance Company of Pittsburgh;"

"Authorization to Enter into an Agreement with PNC Bank for a $100 Million Unsecured Line of Credit;"

"Authorization to Enter into an Agreement with Middletown Township to Create a Transportation Revitalization Improvement District (TRIO) Adjacent to Wawa Passenger Station in Delaware County;"

"Award Proposals;"

of Contracts Pursuant to a Request for

"Authorization to Execute Consultant Amendments;"

"Amendment to Authorization to Enter into a Tri-Party Site Development Agreement and Operating and Maintenance Agreement with MC Roseland Washington Street, L.P. and the Borough of Conshohocken in Connection with the Relocation of Washington Street in Support of a Residential Development Project in Conshohocken, Montgomery County;"

"Authorization Procurements;"

to

"Award of Various Procurements;" and

Award Contracts

Contracts for

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for Various

Sole Source


"Authorization to Execute Change Orders and Amendment."

Mr. Deon stated that all Calendar were reviewed by the public session.

of the items on the Consent appropriate Board Committees in

Mr. Deon entertained a Motion to adopt the Resolutions. Mr. Kernodle moved, Ms. Coleman seconded and the following Resolutions were unanimously adopted with Mr. Kubik abstaining on Items V.B.5. and V.D.1.; Mr. Johnson abstaining on Item IV.D.1.; and Mr. Deon abstaining on Item IV.D.1. Subsequent to the Board meeting, Mr. Leonard indicated to Ms. Looby that he had experienced technical difficulties in joining the Board meeting, and that he voted "No" to Agenda Item IV.D.2.

II.A. TERMINATION OF STERLING ADVISORS AND APPOINTMENT OF PRUDENTIAL TRUST COMPANY COLLECTIVE TRUST AS INVESTMENT MANAGER

"WHEREAS, on February 24, 2011 the Pension Committee of the Board revised the Statement of Investment Policy and Objectives and Operating Guidelines ("Policy Statement") which governs the investment of the funds of the pension plans of SEPTA; and

WHEREAS, the Policy Statement provides investment guidelines and investment return expectations for all investment managers; and

WHEREAS, the Policy Statement contains monitoring procedures for the Pension Committee to utilize in its review of the performance of each investment manager; and

WHEREAS, Sterling Advisors ("Sterling"), a division of BB&T Securities, manages a portfolio of domestic fixed income securities for the SEPTA Pension Plan; and

WHEREAS, on December 13, 2016, PFM Advisors, the SEPTA Pension Plan Consultant, issued a Money Manager Alert advising that the long-term portfolio manager at Sterling responsible for the investment of the SEPTA Plan assets at the firm had resigned to form his own investment management company; and

WHEREAS, at the Pension Committee Meeting that was held on February 23, 2017, PFM Advisors discussed the change in portfolio managers at Sterling and reviewed the performance of the fund, and as a result thereof the Pension Committee voted to place Sterling on the Watch List pursuant to criteria outlined in the Plan's Policy Statement; and

WHEREAS, at the May 25, 2017 Pension Committee meeting, PFM Advisors presented an evaluation of several potential fixed income managers including firm management, investment strategies, and historic performance; and

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WHEREAS, after review and discussion, the Pension Committee decided to interview Sterling's portfolio management team, as well as the portfolio management team from Prudential Trust Company Collective Trust ("Prudential"); and

WHEREAS, at the June 22, 2017 Pension Committee Meeting, representatives of both Sterling and Prudential were interviewed by the Pension Committee and PFM Advisors and answered questions related to their respective portfolio management teams, investment strategies, fund performance, and other relevant events at their respective firms; and

WHEREAS, after committee discussions, and based on the interviews, portfolio management teams, and performance measures, PFM Advisors recommended and the Pension Committee agreed to terminate the investment management contract with Sterling and appoint Prudential as a domestic fixed income investment manager.

NOW, THEREFORE, BE IT RESOLVED, that the Board hereby approves the termination of SEPTA's investment management agreement with Sterling Advisors, and designates and appoints Prudential Trust Company Collective Trust as an investment manager of domestic fixed income investments for the SEPTA Pension Plan.

FURTHER RESOLVED, that the Board hereby authorizes the proper officers of SEPTA (i) to execute and deliver all documents that will enable SEPTA to terminate its investment contract with Sterling Advisors and enter into an investment management agreement with Prudential Trust Company Collective Trust as an investment manager of domestic fixed income investments for the SEPTA Pension Plan; (ii) take such action necessary to liquidate and/or transfer the assets currently being managed by Sterling to fund the Prudential Trust Company Collective Trust fund as approved by the Pension Committee; and (iii) to do any and all other things that may be necessary in order to effectuate this Resolution."

III.A. AMENDMENT OF THE FISCAL YEAR 2017 OPERATING BUDGET AND ALLOCATION OF FUNDS TO THE SERVICE STABILIZATION FUND

"WHEREAS, in July 2007 the Pennsylvania General Assembly approved Act 44 of 2007, creating the Public Transportation Trust Fund, which was intended to provide a stable and growing source of subsidies for public transportation throughout the Commonwealth, as well as a long-term funding solution for Pennsylvania's public transportation agencies; and

WHEREAS, shortly after the enactment of Act 44 of 2007, SEPTA created the Service Stabilization Fund in order to sustain SEPTA' s operations for a longer term and to provide adequate subsidy funds to maintain stable financial resources for future operating budgets; and

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WHEREAS, SEPTA's enabling act at 74 Pa.C.S. § requires the Board to adopt an operating budget prior beginning of each fiscal year; and

175l(a) to the

WHEREAS, on May 26, 2016 the Board adopted the operating budget for Fiscal Year 2017; and

WHEREAS, during Fiscal Year 2017 the Authority achieved operating budget savings associated with reductions in expenses for (i) self-insured employee medical, workers' compensation, prescription drug costs, and injury and damage claims; (ii) snow removal costs; (iii) propulsion power and fuel expenditures; and (iv) contract settlements related to the Sil verliner V railcar fleet defects; and

WHEREAS, these savings were partially offset by a passenger revenue shortfall resulting from (i) lower ridership; (ii) the six-day City Transit Division strike; and (iii) the Silverliner V fleet defect which necessitated 120 railcars having to be temporarily removed from RRD revenue service; and

WHEREAS, the Finance and Planning Di vision has requested that the General Manager recommend that the Board authorize management to allocate approximately $12.2 million to the Service Stabilization Fund and reduce state and local operating subsidies by approximately $12.2 million in the Fiscal Year 2017 operating budget, which will enable the funds to be used to subsidize future years operating expenses and budgets, under the terms set forth above and more fully described in the pertinent staff summary; and

WHEREAS, the General Manager made the recommendation to the Board.

NOW, THEREFORE, BE IT RESOLVED, that the Board hereby authorizes SEPTA to amend its operating budget for Fiscal Year 201 7 and to allocate approximately $12. 2 million of state and local subsidies to the Service Stabilization Fund, under the terms that are set forth within the pertinent staff summary.

FURTHER RESOLVED, that the Board hereby authorizes the General Manager or his designee to execute all documents, in form approved by the Office of General Counsel, and to do any and all other things as shall be deemed necessary and proper in order to effectuate the purpose of this Resolution."

IV.A. AUTHORIZATION TO RENEW PURCHASE OF STOP LOSS INSURANCE FOR MEDICAL AND PRESCRIPTION DRUG BENEFITS WITH AGI/NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH

"WHEREAS, effective August 1, 2016 SEPTA purchased its selfinsured formal arrangement for medical/health coverage administered by Independence Blue Cross ("IBC"), as well as

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employee prescription benefits administered through CVS Heal th (formerly CVS/Caremark) from National Union Fire Insurance Company of Pittsburgh (currently "AIG"), for medical coverage covering over 25,000 lives (including employees and certain retirees, spouses and dependents), which included "Specific Deductible" of $500,000 or higher per person; and

WHEREAS, part of said self-insured program is a "stop-loss" insurance contract covering catastrophic or "shock claims"; and

WHEREAS, the current stop loss insurance coverage with AIG was for a one-year period expiring on July 31, 2017, at an estimated annual premium of $2,724,945; and

WHEREAS, SEPTA' s broker, Innovative Risk Solutions, Inc., reached out to 17 stop-loss carriers for renewal coverage quotes, of which only four firms submitting bids; and

WHEREAS, the lowest bid was from incumbent carrier AIG which quoted a rate to SEPTA of $23.35 per employee/non-Medicare retiree, which is $0.84 cents over the current rate of $22.51 (or a 3.7% increase); and

WHEREAS, the proposed new policy with AIG will have a 2 4-month look back (or "cap less renewal"), which means that previous amounts over a 12-month period will count towards a new deductible, with AIG limiting one person to a deductible of $600,000; and

WHEREAS, with the concurrence of the Administration Committee of the Board, staff requested the General Manager recommend that the Board authorize SEPTA to renew its purchase of Stop Loss Insurance from AIG under the terms and conditions that are set forth above and more fully described in the pertinent staff summary; and


NOW, THEREFORE, BE IT RESOLVED, that the Board hereby authorizes SEPTA to renew purchase of Stop Loss Insurance coverage from AIG (National Union Fire Insurance Company of Pittsburgh) under the terms and conditions that are set forth within the pertinent staff summary.

FURTHER RESOLVED, that the coverage will cover both medical and prescription drug claims incurred over the one-year period of August 1, 2017 through July 31, 2018 at an estimated annual premium of $2,724,945.

FURTHER RESOLVED, that the Board hereby authorizes the proper officers of SEPTA to execute all documents, in form approved by the Office of General Counsel, and to do any and all

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other things as shall be necessary and proper in order to effectuate the purpose of this Resolution."

IV.B. AUTHORIZATION TO ENTER INTO AN AGREEMENT WITH PNC BANK FOR A $100 MILLION UNSECURED LINE OF CREDIT

"WHEREAS, SEPTA currently has a $50 million unsecured line of credit PNC Bank; and

WHEREAS, with the Commonwealth's passage of Act 89 of 2013, SEPTA's capital spending has doubled and cash requirements have grown at a similar rate; and

WHEREAS, the Authority typically pays for state capital projects and certain federal projects prior to receiving cash payment from the Federal Transit Administration (FTA), the Pennsylvania Department of Transportation (PennDOT), the City of Philadelphia and its surrounding Bucks, Chester, Delaware and Montgomery counties; and

WHEREAS, while SEPTA ultimately is reimbursed for these payments, the increased number of projects made possible by Act 89 has heightened liquidity requirements; and

WHEREAS, recent budget uncertainty at the federal level has resulted in partial apportionments of formula grant funding and subsequent delay in FTA capital reimbursements to the Authority; and

WHEREAS, PNC Bank ("PNC") is the primary commercial bank that SEPTA uses for its daily banking activities; and

WHEREAS, because of the long-standing relationship between SEPTA and the bank, PNC has agreed to extend to SEPTA a $100 million line of credit on an unsecured basis; and

WHEREAS, PNC's willingness to make the line of credit available without security eliminates the need to pledge fare box revenues or other state/federal revenue sources; and

WHEREAS, subject to Board approval, SEPTA and PNC have agreed to terms for the $100 million unsecured line of credit, including (i) a one-year term; (ii) a borrowing rate equal to the daily LIBOR rate plus 75 basis points; and (iii) a credit facility fee of either 10 or 25 basis points depending upon utilization of the line of credit; and

WHEREAS, staff has requested that the General Manager recommend that the Board authorize SEPTA to enter into a $100 million unsecured line of credit with PNC in order to efficiently manage the Authority's payment capabilities and provide liquidity throughout the fiscal year, under the terms and conditions set

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forth above and more fully described in the pertinent staff summary; and


NOW, THEREFORE, BE IT RESOLVED, that the Board hereby authorizes SEPTA to enter into the proposed agreement with PNC Bank for a $100 million unsecured line of credit, under the terms and conditions as set forth within the pertinent staff summary.


IV.C. AUTHORIZATION TO ENTER INTO AN AGREEMENT WITH MIDDLETOWN TOWNSHIP TO CREATE A TRANSPORTATION REVITALIZATION IMPROVEMENT DISTRICT (TRIO) ADJACENT TO WAWA PASSENGER STATION IN DELAWARE COUNTY

"WHEREAS, on May 25, 2017 the Board approved SEPTA's Fiscal Year 2018 Capital Budget and Twelve-Year Capital Program and Comprehensive Plan which included the restoration of revenue service on the Media-Elwyn RRD Line from its current terminus at Elwyn to a new station in Wawa, Middletown Township, Delaware County; and

WHEREAS, the project includes renewal of infrastructure (including bridges, track, signals and catenary systems), as well as construction of a new passenger station building ("Station") and parking lot at Wawa, with construction thereof expected to commence in calendar year 2018; and

WHEREAS, in 2004, the Pennsylvania General Assembly passed Act 238 of 2004 known as the Transportation Revitalization Improvement District (TRIO) Act, which enables municipalities and counties within the Commonwealth to create TRIDs to promote improvements and development at and around public transit stations; and

WHEREAS, on November 4, 2016, Governor Wolf signed legislation (Act 151 of 2016) amending and modernizing the TRIO Act to encourage greater utilization of this financing tool, which authorizes municipalities, counties and school districts to use incremental tax revenues generated by new real estate investment (value capture) within the TRIO for the completion and maintenance of infrastructure supporting the TRIO; and

WHEREAS, Act 151 of 2016 also Program to be administered by the Community and Economic Development

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created a TRIO Fund Grant Pennsylvania Department of

(DCED) via two statewide


grants to supplement local TRIO revenues feasibility of TRIO projects, with the funding either an eligible project or payments related to the debt incurred project; and

and enhance the fiscal grants to be used for covering debt service to fund an eligible

WHEREAS, in March 2017 Middletown Township ("Township") approached SEPTA about conducting a study with respect to the creation of a TRIO which would extend a three-quarter mile radius around the new Station, and includes the former Franklin Mint site and other properties in the Township, which study was supported by SEPTA; and

WHEREAS, on June 29, 2017 the Township submitted an application for one of the two TRIO Fund Grants seeking to make a minimum of $5.1 million in infrastructure investments within the TRIO to be financed over a period of 15 years; and

WHEREAS, the TRIO-supported infrastructure investments by the Township would include (i) extending the Chester Creek Trail to the Station; (ii) Baltimore Pike enhancements; and (iii) a pedestrian connection to the Station from a planned residential development at the former Franklin Mint site; and

WHEREAS, the proposed pedestrian access is significant for SEPTA due to the Township's current development project which anticipates 302 units of housing, 600,000 square feet of office/commercial space, a 120 room hotel and approximately 10, 000 square feet of restaurants, thereby creating need for nearby residents and employees commuting to work to access the Station; and

WHEREAS, in order to be eligible for TRIO Fund Grant funding, the Township must, inter alia, complete a formal agreement with SEPTA that (i) approves the TRIO planning study; (ii) defines the activities, commitments and administrative roles of each party to the TRIO; and (iii) designates the Township as the TRIO Management Entity; and

WHEREAS, staff requested that the General Manager recommend that the Board authorize SEPTA to enter into an agreement with the Township to create a TRIO adjacent to the Station under the terms and conditions set forth above and more fully described in the pertinent staff summary; and


NOW, THEREFORE, BE IT RESOLVED, that the Board hereby authorizes SEPTA to enter into an agreement with Middletown Township for the creation of a Transportation Revitalization Improvement District (TRIO) adjacent to SEPTA's planned new Wawa

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RRD Passenger Station, under such terms and conditions set forth within the pertinent staff summary.


IV.D. AWARD OF CONTRACTS PURSUANT TO A REQUEST FOR PROPOSALS

"WHEREAS, SEPTA, which has need for the services as described below, has advertised and solicited proposals from firms wishing to propose; and

WHEREAS, SEPTA staff has requested that the General Manager recommend that the Board authorize the award of a contract to the firms listed below because said firms were the successful proposers in the areas for which the request for proposals was issued; and

WHEREAS, the General Manager recommended that the Board authorize the award of the contracts.

NOW, THEREFORE, BE IT RESOLVED, that the Board hereby authorize to award subject to the following conditions and the General Manager to execute the following conditions and the General Manager to execute the following contracts, in form approved by the Office of General Counsel, subject to the concurrence of the funding agencies, if required, and contingent upon and subject to the proposers satisfactorily meeting all requirements of the terms and conditions of the relevant request for proposals, including the provision of any insurance certificates and full compliance with any applicable Disadvantaged Business Enterprise (DBE) requirements:

1. To Gannett Fleming, Inc.; to HNTB Corporation; to Pennoni Associates, Inc.; to Johnson, Mirmiran & Thompson, Inc.; to AECOM Technical Services, Inc.; to STV Incorporated; to McCormick Taylor, Inc.; and to Jacobs Engineering Group, Inc., for the provision of general engineering consultant services (GEC-17) for rail and bus infrastructure and related mass transit projects, with services to be performed over a period of three years scheduled to commence in August 2017, for total contract amounts for each of the eight GEC consul tan ts not to exceed $8,000,000, Request for Proposals No. 16-00288-ACKR General Engineering Consultant Services for Rail and Bus Infrastructure and Related Mass Transit Projects."

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IV.E. AUTHORIZATION TO EXECUTE CONSULTANT AMENDMENTS

"WHEREAS, additional work is required to complete the projects identified below; and

WHEREAS, staff reviewed the additional work and the General Manager recommended that the Board authorize SEPTA to enter into the amendments for the additional work.

NOW, THEREFORE, BE IT RESOLVED, that the Board hereby authorizes SEPTA to award and the General Manager or his designee to execute the consultant amendments identified below in form approved by the Office of General Counsel, subject to the concurrence of the funding agencies, if required, and to any applicable Disadvantaged Business Enterprise requirements:

1. To LTK Engineering Services, Inc., for Amendment No. 6, which provides for a 15-month time extension of the consultant services contract providing on-site technical and administrative support of the New Payment Technologies (now known as Key) Program and other projects associated with payment system equipment, thereby establishing a new contract completion date of December 31, 2018, at an increase in cost not to exceed $1,989,989, bringing the total contract price, including all amendments to date, to an amount not to exceed $15,777,704.

2. To Intersection Media, LLC (formerly Titan Outdoor, LLC), for Amendment No. 4, which provides for the authorization to exercise two 2-year renewal options to the Contract for Transit and Railroad Advertising services, for a total minimum guarantee payment obligation to SEPTA of $7 4, 200, 000 over the combined two option periods, under such other terms and conditions as described in the staff summary on this subject."

V.A. AMENDMENT TO AUTHORIZATION TO ENTER INTO A TRI-PARTY SITE DEVELOPMENT AGREEMENT AND OPERATING AND MAINTENANCE AGREEMENT WITH MC ROSELAND WASHINGTON STREET, L.P. AND THE BOROUGH OF CONSHOHOCKEN IN CONNECTION WITH THE RELOCATION OF WASHINGTON STREET IN SUPPORT OF A RESIDENTIAL DEVELOPMENT PROJECT IN CONSHOHOCKEN, MONTGOMERY COUNTY

"WHEREAS, the Borough of Conshohocken ("Borough") is currently involved in a 340 unit residential development project ("Project") with MC Roseland Washington Street, L.P. ("Developer"), by its sole general partner Mack-Cali Sub XV Trust, with respect to property located at 51 Washington Street in Conshohocken, Montgomery County; and

WHEREAS, by authorization of the Board on July 21, 2016, as part of the Project the Borough shall acquired ownership (via quitclaim deed) of a portion of SEPTA's existing inbound parking lot property located at the Conshohocken Passenger Station ("Station") on the Manayunk/Norristown Regional Rail Division

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(RRD) Line, for the purpose of realigning Washington Street by Roseland Residential Trust L.P., an umbrella organization for the Developer; and

WHEREAS, in exchange and consideration for the Station property to facilitate realignment of Washington Street, the Borough shall vacate and transfer to SEPTA a portion of the existing Washington Street; and

WHEREAS, under the proposed Project at the time of the Board's authorization, the Developer agreed to construct a new SEPTA commuter parking lot consisting of 60-70 spaces, along with three designated catch basins for storm water drainage, at no cost to SEPTA; and

WHEREAS, the Developer received a $400,000 park and ride grant from the Commonwealth of Pennsylvania to fund the Project; and

WHEREAS, the Borough had agreed to forego payment from Developer of one-half $185,000, provided that reconstruction of the Washington Street; and

of the impact fee in the amount the Developer used the money towards SEPTA parking lot and realignment

the of

the of

WHEREAS, due to a subsequent short-fall of $210,000 in available funds, attributable to the final design configuration, added safety features and improvements, it has been proposed that the Borough and Developer shall each contribute equal amounts in fundings toward the short-fall, while SEPTA shall now expend an amount not to exceed $70, 000, which shall be payable at the conclusion of the Project; and

WHEREAS, all other aspects of the Project as previously outlined and presented to the Board with regard to the relocation of Washington Street and residental development of 51 Washington Street shall remain in full force and effect; and

WHEREAS, the Developer will indemnify SEPTA from and against any and all liability related to the construction of the parking lot, and shall obtain and maintain such insurance as mandated by SEPTA; and

WHEREAS, in the event any environmental contamination is discovered on SEPTA property by the Developer during construction, SEPTA will be responsible for remediation and removal thereof, but SEPTA will not be responsible for any consequential, remote or delay claims related to such contamination; and

WHEREAS, if required, SEPTA will obtain any Federal Transit Administration ( FTA) concurrence of the transaction contemplated hereunder; and

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WHEREAS, staff requested that the General Manager recommend that the Board amend its prior authorization granted on July 21, 2016, and now authorize SEPTA to enter into a tri-party agreement with the Borough and Developer in order to facilitate SEPTA' s covering one-third of the short-fall for the cost of the Project, in an amount not to exceed $70,000, under the terms and conditions as set forth above and more fully described in the pertinent staff summary; and


NOW, THEREFORE, BE IT RESOLVED, that the Board hereby authorizes SEPTA to enter into a tri-party agreement with the Borough of Conshohocken and Developer MC Roseland Washington Street, L. P., under such terms and conditions set forth within the pertinent staff summary.


V.B. AUTHORIZATION TO AWARD CONTRACTS FOR VARIOUS PROCUREMENTS

"WHEREAS, SEPTA advertised and invited bids for the supplies identified below; and

WHEREAS, the firms listed below were the lowest responsive and responsible bidders to the invitation for bids; and

WHEREAS, staff requested that the General Manager recommend that the Board authorize SEPTA to award the contracts identified below; and


NOW, THEREFORE, BE IT RESOLVED, that the Board hereby authorizes SEPTA to award and for the General Manager or his designee to execute the contracts identified below in form approved by the Office of General Counsel, subject to and contingent upon the concurrence of the funding agencies, if required, and contingent upon and subject to the vendors satisfactorily meeting all requirements of the bid terms and specifications, including full compliance with any applicable Disadvantaged Business Enterprise requirements:

for the purchase of an 1. To T. Frank McCall's Inc., estimated 25, 000 calcium chloride bags snow and ice during the 2017-2018 winter of $11. 65, with deliver of material on over a period of seven months scheduled

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to be used for melting season, at a unit price an "as required" basis to commence in October


2017, as described in the staff summary on this subject, for a total contract amount not to exceed $291,250, Sealed Bid No. 17-00097-ARZP - Calcium Chloride Bags.

2. To The Okonite Company, for Items Nos. 1-9, for the purchase of signal cable to be used for the Arsenal Interlocking Renewal Project located near the intersection of University Boulevard and the Schuylkill Expressway, with delivery of material commencing in October 2017, as described in the staff summary on this subject, for a total contract amount not to exceed $245, 637. 50, Sealed Bid No. 17-00060-ACZC - Signal Cable For SEPTA.

3. To Neshaminy Constructors, Inc., for general construction services, for a total contract amount not to exceed $ 7, 55 7, 500; to John J. Bee, Inc., for mechanical construction services, for a total contract amount not to exceed $325,000; and to Wescott Electric Company, for a total contact amount not to exceed $759,000, to provide all labor, materials, tools and equipment for the 30th Street Station - 31st Street Improvements Project, with services to be performed over a period of 540 calendar days after issuance of Notice-to-Proceed, as described in the staff summary on this subject, Sealed Bid No. 17-00116-AKLM - 30th Street Station and 31st Street Improvements.

4. To FELLFAB Corporation, for Items Nos. 1-4, for the purchase of replacement seat cushions and cover assemblies to be used on the Silverliner IV rail car fleet, at unit prices of $226.46, $122.24, $324.97 and $171.04, respectively, with delivery of material scheduled over a period of five years commencing within 90 days of issuance of Notice-to-Proceed, as described in the staff summary on this subject, for a total contract amount not to exceed $4,291,408.80, Sealed Bid No. 17-00091-AWDC - Seats for Silverliner IV Cars.

5. To Seravalli, Inc., for general contractor services to provide all labor, material and equipment for the installation of eight ADA concrete curb ramps along Market Street, with services to be performed over a period of 90 calendar days after issuance of Notice-to-Proceed, as described in the staff summary on this subject, for a total contract amount not to exceed $211, 000, Sealed Bid No. 17-00053-ATMM Eight Curb Ramps Along Market Street.

6. To PEI Genesis, Inc., for Items Nos. 59-012 8 8 59-01291, for the purchase of various cable assembly harness kits to be used in the maintenance of the M-4 car fleet, at unit prices of $2,894.49, $2,898.28, $3,038.49 and $2,511.05, respectively, with delivery of material scheduled over a period of four years commencing in September 2017, as described in the staff summary on this subject, for a total contract amount not to exceed $1, 02 0, 8 07. 90, Sealed Bid No. 16-0024 7-AMGA - Cable Assemblies for M-4 Cars.

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7. To Siemens Industry, Inc., for the provision of design, materials, equipment and manufacturing of the replacement of three existing static frequency converters (SFC) and one new unit at Wayne Junction, with services to be performed over a period of 535 calendar days after issuance of Notice-to-Proceed, as described in the staff summary on this subject, for a total contract amount not to exceed $23,568,835.46, Sealed Bid No. 16-00250-ACZC Static Frequency Converters for Wayne Junction Project.

8. To Orgo-Thermit, Inc., for the provision of rail grinding services on approximately 13 miles of Broad Street Subway (BSS) Line express track to shape the rail head and remove defects caused by substantial usage, with services to be performed over a period of 90 days after issuance of Notice-toProceed, as described in the staff summary on this subject, for a total contract amount not to exceed $275,325, Sealed Bid No. 17-00074-APES - Rail Grinding - Broad Street Subway."

V.C. AWARD OF VARIOUS CONTRACTS FOR SOLE SOURCE PROCUREMENTS

"WHEREAS, SEPTA has need for the described below and those supplies and only from the firms listed below; and

supplies and services services are available

WHEREAS, staff reviewed the cost of the supplies and services and the General Manager recommended that the Board authorize SEPTA to award the contracts.

NOW, THEREFORE, BE IT RESOLVED, that the Board hereby authorizes SEPTA to award and the General Manager or his designee to execute the contracts identified below, all in form approved by the Office of General Counsel, subject to the concurrence of the funding agencies, if required, and contingent upon and subject to each vendor I contractor satisfactorily providing any required bonds, insurance certificates and/ or other documents, and complying with any applicable Disadvantaged Business Enterprise requirements:

1. To Lubrite Technologies, LLC, for the purchase of 345 wear plates to be used in the maintenance of the Light Rail Vehicle (LRV) and M-4 truck bolsters, at a negotiated unit price of $938, with delivery of material scheduled over a period of three years commencing in November 2017, as described in the staff summary on this subject, for a total contract amount not to exceed $323,610.

2. To Siemens Industry, Inc., for the purchase of various spare Positive Train Control (PTC) component parts to be used in the maintenance of the Silverliner IV and Bombardier Push-Pull rail car fleets, with delivery of material scheduled to commence in August 2017, as described in the staff summary on this subject, for a total contract amount not to exceed $105,501.57.

16


3. To ITT Enidine, Inc., for the purchase of currently stocked suspension replacement parts to be used for the M-4 and N-5 car fleets, with delivery of material on an "as required" basis over a period of three years commencing in August 2017, as described in the staff summary on this subject, for a total contract amount not to exceed $393,190.

4. To AT&T Mobility National Accounts, LLC d/b/a AT&T Mobility, for the software licensing and installation of customizable digital forms to be loaded on mobile devices that would replace the paper forms currently being used by Operations field personnel, with services to be performed over a period of three years scheduled to commence in August 2017, as described in the staff summary on this subject, for a total contract amount not to exceed $420,000.

5. To BMC Software, Inc., for the renewal of software licensing and related migration, maintenance and support services for the Control-M software package installed in SEPTA' s Data Center, with services to be performed over a period of three years scheduled to commence in August 2017, as described in the staff summary on this subject, for a total contract amount not to exceed $208.521.01.

6. To INFODEV Electronic Designers International, Inc., for the provision of automatic passenger counter (APC) systems programming and support services, to be performed over a period of four years commencing on August 1, 2017 and maintenance and support commencing on March 1, 2018, as described in the staff summary on this subject, for a total contract amount not to exceed $95,375."

V.D. AUTHORIZATION TO EXECUTE CHANGE ORDERS AND AMENDMENT

"WHEREAS, additional work is required to complete the projects identified below; and

WHEREAS, staff reviewed the cost of the additional work and the General Manager recommended that the Board authorize SEPTA to order the additional work.

NOW, THEREFORE, BE IT RESOLVED, that the Board hereby authorizes SEPTA to award and the General Manager or his designee to execute the change orders/amendment identified below in form approved by the Office of General Counsel, subject to the concurrence of the funding agencies, if required, and to any applicable Disadvantaged Business Enterprise requirements:

1. To James J. Anderson Construction Company, Inc., for Change Order No. 3, which provides for additional general construction work on the Margaret-Orthodox Station Rehabilitation Americans with Disabilities Act (ADA) Project, at an increase in cost not to exceed $384,294, bringing the total contract price,

17


including all change orders to date, to an amount not to exceed $21,488,256, provided that with the Board's approval of this change order, the Board authorizes the resetting of prior authorized cumulative change order amounts to zero dollars ( $0) and the establishment of a new cumulative change order threshold of 10% or $500,000, whichever is first reached, pursuant to the Resolution adopted by the Board on May 22, 2008, which Resolution authorized a "Delegation of Authority for Change Orders, Amendments and Agreements".

2. To Conduent, Inc. (formerly XEROX Transport Solutions, Inc. ) , for Change Order No. 16, which provides for additional equipment and scope of work for the New Payment Technologies System contract, at an increase in cost not to exceed $7,869,340, bringing the total contract price, including all change orders to date, to an amount not to exceed $157,492,342.

3. To Michelin North America, Inc., for Amendment No. 1, which provides for a change to the pricing terms (during the 36-month run-out option period from July 1, 2017 - June 30, 2020) under the lease and service contract of bus tires, bringing the total contract price, including this amendment, to an amount not to exceed $1, 659, 394. 90 for exercise of the 36-month run-out option."

Report of General Manager

Mr. Knueppel stated that maintaining and enhancing the SEPTA system was a year-round activity, but the summer was a particularly good time to perform construction work while the schools were out of session and riders taking vacations.

Mr. Knueppel said that one of the things staff was focused on in 2017 was continued improvements to regional rail service infrastructure with a track-work project on the Wilmington, Newark and Airport Lines. He said weekend service in August would be adjusted with single tracking on the Wilmington Line and shuttle busing on the Airport Line. Mr. Knueppel mentioned that staff has been working closely with the airport to ensure that the regular customers and out-of-town visitors know about the shuttle buses that would operate between the terminal stops and 30th Street Station.

Mr. Knueppel reported that with testing and verification just about complete, in August staff also would be introducing our real time vehicle location improvements for surface and regional rail. He explained that the ability to see all vehicles out in service and to know exactly when it would be arriving was an exciting communication information enhancement for customers and SEPTA operations personnel.

Mr. Knueppel closing by saying that staff was proud of the Authority's Transit Police force and the work they do to keep the

18

Minutes of Regu1ar Board Meeting Ju1y 27, 2017

system and region safe. He then asked Chief Nestel to introduce Sergeant Marc Pasquarella and to tell the Board of Sergeant Pasquarella's recent act of life-saving heroism.

Chief Nestel read the following statement, "Sergeant Mark Pasquarella, you are hereby officially commended for heroic action you took with no regard for your own safety which saved the life of another. The circumstances leading to this commendation are as follows: On Friday, June 30, 2017, you were on patrol in a SEPTA police vehicle in the late night hours when you witnessed a vehicle run into the rear of a parked trash truck on the 1200 block of North Delaware Avenue. You immediately pulled over, approached the vehicle, and observed the male driver slumped over in the driver's seat. Moments later the vehicle sparked and caught fire. Assisted by a nearby Good Samaritan, you worked feverishly to attempt to extricate the victim from the car. Witnesses on the scene began to shout that the fire was worsening. You knew you only had moments to free the man and get him to safety. While attempting to dislodge the man's legs, the vehicle began to leak engine oil making an already dangerous scene even more so. You persevered in the face of danger and were able to pull the driver from the car and to a safe distance.

A scant few moments later and the car was fully engulfed in flames. The victim was transported to Hahnemann Hospital where he was listed in critical condition. Without hesitation you rushed into the face of danger with no regard for your own safety, saving the life of a person in dire need. You are a credit to yourself and the SEPTA Transit Police Department. Thank you Sergeant Pasquarella."

Mr. Knueppel stated that would conclude his report.

Mr. Deon thanked the Chief and said the Authority has a spectacular police department and the officers do a great job every day of the week. He then thanked Sergeant Pasquarella for going above and beyond the call.

Mr. Deon then called for speakers.

Board Member Bill Leonard joined the meeting at 3:09 PM.

Speakers

Catherine Gilmore Richardson

Ms. Gilmore Richardson introduced herself as the Chief of Staff for Councilwoman Blondell Reynolds Brown. She addressed the Board on behalf of the Councilwoman and said that Councilwoman Reynolds Brown as the Chair of the City Council Committee on the Environment wanted the Board to know that her office supports the work the Authority was doing and were pleased and proud to introduce a Resolution in City Council on Thursday, June 7, 2017, commending SEPTA for the largest solar initiative

19

Minutes of Regu1ar Board Meeting Ju1y 27, 2017

with the installation of PV systems at four bus and rail shops across the City. The Councilwoman also thanked SEPTA for being a leader in energy conservation in transportation and in the City of Philadelphia. Ms. Gilmore Richardson stated that once the project was completed, this would be one of the largest solar installations in the City and she thanked the Authority for this project.

Ms. Gilmore Richardson then presented the Authority with a Resolution on behalf of Councilwoman Reynolds Brown and the Philadelphia City Council.

Mr. Deon thanked Ms. Gilmore Richardson and then called for the next speaker, Peter Winslow.

Peter Winslow

Mr. Winslow welcomed Mr. Carroll and thanked the Board for the opportunity to speak. He said he would speak to the Board on behalf of the Pennsylvania Interfaith Power & Light, 350 Philly and the entire environmental and social justice community. He said they join the City Council and Councilwoman Reynolds Brown in applauding the decision of SEPTA to begin its solarization program. Mr. Winslow said they hope that additional PV solar installations would be instituted in the coming months and years.

Mr. Winslow said they were enthusiastic about the upcoming SEPTA energy plan stakeholder's meeting and they were hoping that the forward looking aspects of that stakeholder's meeting would extend out to the point where SEPTA would be fossil free. He said they think it was extremely important not only to obtain energy electricity from renewable sources and to pursue the conservation measures that were in front of SEPTA and the Board, but also to have an accelerated program for electrification of buses.

Mr. Winslow said that as we speak right now there was another transit board, the Los Angeles Transit Board, that was in the process of adopting a Resolution and a program to have their entire system have zero emissions as a result of electrification of buses by 2030. He said their fleet was the second largest in the country with 2300 buses and that they would be purchasing 95 buses this year with another purchase of 200 buses a year in order to reach their goal.

Mr. Winslow informed the Board that he had forwarded to Board Secretary Looby (attached to these Minutes as Exhibit "B") what he thought was probably the most succinct statement about where things stand now in terms of the economics of electric buses. He said there were many sources but this particular one comes from the Sierra Club and was put together as a result of the urging from different instrumentalities and agencies such as SEPTA to use the Volkswagen Settlement Environmental Mediation

20


Trust Funds to electrify their system with buses. Mr. Winslow stated that presently, although the initial cost of an electric bus was more than it would be for the diesel hybrids, which the Authority has in the pipeline, the lifecycle cost for electric buses was now lower than diesel and lower than diesel hybrid. He said it was in the prudent interest of SEPTA to have an aggressive program to electrify its buses, and he urges SEPTA to do so. Mr. Winslow said this situation was only going to improve in the future, and the gains that have taken place in terms of diesel technology have been substantial, but nothing near the gains that have been achieved and were anticipated in the near future in terms of electric bus technology, specifically the cost of batteries. Mr. Winslow said he urges this issue to be a significant part of the plan that would be discussed in August.

Mr. Deon thanked Mr. Winslow and then called for the next speaker, Matt Wang.

Matthew Wang

Mr. Wang behalf of 350 SEPTA employee. could be found Looby, attached

introduced himself and said he was speaking on Philadelphia. He mentioned that he was also a

He also mentioned that most of what he would say in the booklet that he provided to Secretary

to these Minutes as Exhibit "C".

Mr. Wang said the idea was that we need to have a fundamental re-thinking of how issues were approached with the community. He said he thought what the 350 campaign and its allies had experienced over the last year and a half were issues that went beyond just the gas plant. Mr. Wang explained that what the Board would see in the booklet were what all of these other agencies around the world were in fact doing, which was exactly what they have been asking the Authority to do, which was to come up with a comprehensive plan to make a transition towards renewable energy. He said he realizes that at this point, we were just a few permits away from having a gas plant approved and in all reality it would be built, but he requested a deeper consideration of how this Board engages in the community on future projects, either fossil fuels or otherwise, before making those decisions.

Mr. Wang said he would just end with one really simple question, and that was his confusion over the ownership of the Midvale gas plant. He mentioned that he had read the RFP and the addendum and saw the contract. He said that he looked at the RFP and it states that the successful bidder would finance, design, build, own, operate and maintain but then he saw the contract that shows in some way that SEPTA was financing and owning the gas plant. Mr. Wang noted that the Air Management Services permits say SEPTA was the owner. He said that he was not a financial expert, but he was left confused and said he was hoping that there might be a Board member willing to state for the

21


record who owns the Midvale gas plant. He asked was it Noresco or SEPTA. Mr. Burnfield responded and said SEPTA would own the facility. Mr. Deon asked Mr. Burnfield to provide the details to Mr. Wang.

Mr. Deon then called for the next speaker, Anne Crosier.

Anne Crosier

Ms. Crosier read from a prepared statement that was submitted and attached to these Minutes as Exhibit "D". Mr. Deon asked Mr. Heinle to meet with Ms. Crosier regarding her statement.

Adjournment

There being no further business to come before the Board at this Regular Meeting, it was moved by Mr. Kubik seconded by Mr. Babcock, and unanimously adopted that the meeting be adjourned at 3:21 PM.

A transcript of this meeting was made by an official court reporter and is made a part of the original Minutes.

Carol R. Looby Secretary

22

SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY

FINANCIAL REPORT

JUNE 2017

For Period Ended June 30, 2017 (UNAUDITED)

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FINANCIAL REPORT - JUNE 2017

COMMENTARY

Summary of Financial Results and Commentary

GROUP 1 - CONSOLIDATED OPERATIONS

(1.1) Consolidating Statement of Income - (YTD) (1.2) Consolidating Statement of Revenue and Expense - (YTD) (1.3) Consolidating Statement of Income - (One Month) (1.4) Consolidating Statement of Revenue and Expense - (One Month)

GROUP 2 - CITY TRANSIT DIVISION

(2.1) Comparative Statement of Income (2.2) Detail Income Statement - (One Month) (2.3) Detail Income Statement - (YTD)

GROUP 3 - VICTORY DIVISION


GROUP 4 - FRONTIER DIVISION


GROUP 5 - REGIONAL RAIL DIVISION


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SUMMARY

SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY JUNE AND YEAR-TO-DATE RESULTS OF OPERATIONS

The following is a summary of Divisional operating results (i.e. deficit before operating subsidies) and consolidated

results after subsidies for June 2017 and the twelve-month period then ended. The results are compared to the Fiscal

Year 2017 budget and to the prior year results in the accompanying financial statements.

(IN THOUSANDS) TWELVE MONTHS

DIVISION MONTH OF JUNE ENDED JUNE 2017 2016 2017 2016

City Transit $ (45,717) $ (37,596) $ (573,300) $ (541, 760)

Victory (2,966) (2,360) (70,074) (65,460)

Frontier (1,954) (2,046) (25,043) (24,094)

Regional Rail (6,628) (11,923) (188,379) (160,795)

Total Deficit Before Subsidies (57,265) (53,925) (856,796) (792, 109)

Operating Subsidies 63,360 53,949 857,003 792,303

Surplus/(Deficit) After Subsidies 6,095 24 207 194

Unrealized Investment Gain/(Loss) (996) (180) (1,932) 88

Surplus/(Deficit) after Investment Gain/(Loss) $ 5,099 $ (156) $ (1,725) $ 282

The surplus after subsidies for the month of June was $6.1 million and the cumulative surplus for the twelve months

was $207 thousand. Passenger revenue for the month was $481 thousand (or 1.4%) lower than budget. Passenger

revenue for the twelve months of Fiscal 2017 was $40.1 million (or 8.3%) lower than budget due to an unfavorable

Regional Rail variance attributed to the 120 Silverliner V cars being pulled from service for a defect identified in early July,

the six-day TWU-City Transit strike, and ridership being lower than anticipated. Shared Ride Program revenue was $301

thousand lower than budget for the month of June and was $1.8 million (or 9.5%) lower than budget for June year-to-date.

- 1 -


Other Income was $832 thousand better than budget for June year-to-date due to reimbursement from the Democratic

National Committee, rental income and fuel tax rebates offset by lower advertising and parking income. Operating

expenses for the month of June were $7.3 million lower than budget. For the twelve-month period, operating expenses

were $41.3 million (or 3.0%) lower than budget, primarily due to the wage impact during the six-day TWU-City Transit

strike, fringe, material and service costs, injury and damage claims, propulsion power and fuel offset by higher fixed rent.

The results for Fiscal 2017 reflect a $12.2 million operating expense reduction due to savings in self-insurance medical,

workers' compensation, prescription drug costs, injury and damage claims, snow removal costs, propulsion power and

fuel expenditures, offset by passenger revenue shortfall due to lower ridership along with an associated reduction in State

and local subsidies. Operating subsidies were $786 thousand lower than budget primarily due to lower lease cost offset

by higher debt service subsidies.

DIVISIONAL COMMENTARY ON JUNE AND YEAR-TO-DATE RESULTS

CITY TRANSIT DIVISION

The Division's operations for June 2017 resulted in a deficit before subsidies of $45.7 million for the month and a

year-to-date deficit before subsidies of $573.3 million, which is 2.0% lower than budget.

Passenger revenue for the month of June was $663 thousand (or 3.0%) lower than budget. For the twelve months of

Fiscal 2017 total passenger revenue was $21.6 million (or 7.3%) lower than budget. Shared Ride Program revenue for

June year-to-date was $3.1 million (or 15.3%) lower than budget. Operating expenses for the twelve-month period were

lower than budget.

For the twelve months of the fiscal year, the operating surplus after subsidies was $119 thousand.

- 2 -

VICTORY DIVISION


The Division's operations for June resulted in a deficit before subsidies of $3.0 million bringing the cumulative deficit

before subsidies for the twelve months of the fiscal year to $70.1 million, which is 2.7% lower than budget.

Passenger revenue for June was $64 thousand (or 3.9%) higher than budget, and for the twelve months of Fiscal

2017 was $1.2 million (or 5.0%) lower than budget. Operating expenses for the twelve-month period were lower than

budget.


FRONTIER DIVISION

Operations for the month of June resulted in a deficit before subsidies of $2.0 million bringing the cumulative deficit

before subsidies for the twelve months of the fiscal year to $25.0 million, which is 0.7% lower than budget.

Passenger revenue for June was $83 thousand (or 16.7%) lower than budget, and for the twelve months of Fiscal

2017 was $500 thousand (or 7.3%) lower than budget. Operating expenses for the twelve-month period were lower than

budget.


REGIONAL RAIL DIVISION

Operations for the month of June resulted in a deficit before subsidies of $6.6 million bringing the cumulative deficit

before subsidies for the twelve-month period to $188.4 million, which is 0.4% higher than budget.

June passenger revenue was $201 thousand (or 1.8%) higher than budget, and year-to-date passenger revenue

was $16.9 million (or 11.0%) lower than budget. Operating expenses for the twelve-month period were lower than budget.


- 3 -


GROUP 1 - CONSOLIDATED OPERATIONS

(1.1) Consolidating Statement of Income - (YTD) (1.2) Consolidating Statement of Revenue and Expense - (YTD) (1.3) Consolidating Statement of Income - (One Month) (1.4) Consolidating Statement of Revenue and Expense - (One Month)

OPERATING REVENUES

Passenger Revenue

Other Operating Revenue

Sub-Total - Operating Revenue

Shared Ride Program

TOTAL REVENUE AVAILABLE FOR OPERATIONS

OPERATING EXPENSES

DEFICIT BEFORE SUBSIDIES

OPERATING SUBSIDIES

SURPLUS AFTER SUBSIDIES

Unrealized Investment Gain/(Loss)

DEFICIT INVESTMENT GAIN/CLOSS)

Page 1.1 7/21/17

(UNAUDITED) SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY

CONSOLIDATING STATEMENT OF INCOME TWELVE MONTHS ENDED JUNE 30, 2017

(THOUSANDS)

CITY REGIONAL TRANSIT VICTORY FRONTIER RAIL DIVISION DIVISION DIVISION DIVISION

$ 275,763 $ 22,116 $ 6,327 $ 137,195 $ 22,751 2,314 759 11,847

298,514 24,430 7,086 149,042 17,205 - - -

315,719 24,430 7,086 149,042

889,019 94,504 32,129 337,421

(573,300) (70,074) (25,043) (188,379)

573,419 70,109 25,053 188,422

$ 119 $ 35 $ 10 $ 43 $ (1,256) (31) (6) (639)

$ (1,137) $ 4 $ 4 $ (596) $

BUDGET VARIANCE TOTAL BUDGET SEPTA AMOUNT AMOUNT PERCENT

441,401 $ 481,500 $ (40,099) (8.33)

37,671 36,050 1,621 4.50

479,072 517,550 (38,478) (7.43)

17,205 19,000 (1,795) (9.45)

496,277 536,550 (40,273) (7.51)

1,353,073 1,394,339 41,266 2.96

(856,796) (857,789) 993 0.12

857,003 857,789 (786) (0.09)

207 $ - $ 207

(1,932) - (1,932)

(1,725) $ - $ (1,725)

OPERATING REVENUES

Passenger Revenue Shared Ride Program Investment Income Other Income

TOTAL OPERATING REVENUE

OPERATING EXPENSES

Labor, including Paid Absences Fringe Benefits Material & Services Injuries & Damages Propulsion Power Fixed Rent Fuel Depreciation Budget Reduction

TOTAL OPERATING EXPENSES


OPERATING SUBSIDIES

Federal State Local Lease Cost/Debt Service Other-Route Guarantees State and Local Budget Reduction

TOTAL SUBSIDIES

SURPLUS AFTER SUBSIDIES Unrealized Investment Gain/(Loss)

DEFICIT AFTER INVESTMENT GAINl(LOSS)

Page 1.2 7/21/17

$

$

$


CONSOLIDATING STATEMENT OF REVENUES AND EXPENSES TWELVE MONTHS ENDED JUNE 30, 2017

(THOUSANDS)

CITY TRANSIT VICTORY FRONTIER DIVISION DIVISION DIVISION

BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL

297,335 $ 275,763 $ 23,275 $ 22,116 $ 6,827 $ 6,327 19,000 17,205 - - - -

618 919 33 45 9 13 20,317 21,832 2,163 2,269 726 746

337,270 315,719 25,471 24,430 7,562 __ 7_,086

419,227 405,418 45,585 45,850 18,236 17,626 284,152 258,735 26,987 25,260 8,322 8,082 144,841 155,650 18,600 19,250 3,671 3,868

24,600 22,219 1,600 (529) 300 441 13,548 11,493 1,344 1,218 - -

2,675 3,727 144 149 49 50 20,083 18,430 2,997 3,095 2,163 2,015 13,210 13,347 215 211 51 47 (8,163) - (998) - (357) -

914,173 889,019 96,474 94,504 32,435 32,129

(576,903) (573,300) (71,003) (70,074) (24,873) (25,043)

26,475 26,177 3,360 3,323 1,175 1,158 459,443 449,513 59,557 57,941 20,344 20,197

68,916 67,427 8,933 8,691 3,052 3,030 29,002 29,136 151 154 39 40

1,230 1,166 - - 620 628 (8,163) - (998) - (357) -

576,903 573,419 71,003 70, 109 24,873 25,053

$ 119 $ - $ 35 $ $ 10 - (1,256) - (31) - (6)

- $ (1,137) $ - $ 4 $ - $ 4

REGIONAL RAIL DIVISION TOTAL SEPTA ---

BUDGET ACTUAL BUDGET ACTUAL

$ 154,063 $ 137,195 $ 481,500 $ 441,401 19,000 17,205

490 962 1,150 1,939 11,694 10,885 34,900 35,732

166,247 149,042 536,550 496,277

131,760 138,254 614,808 607,148 80,747 71,612 400,208 363,689

111,194 94,402 278,306 273,170 2,200 1,886 28,700 24,017

20,292 18,856 35,184 31,567 1,208 5,975 4,076 9,901

514 397 25,757 23,937 6,024 6,039 19,500 19,644

(2,682) - (12,200)

351,257 337,421 1,394,339 1,353,073

(185,010) (188,379) (857,789) (856,796)

5,790 5,937 36,800 36,595 102,426 103,510 641,770 631,161

15,365 15,526 96,266 94,674 62,711 61,611 91,903 90,941

1,400 1,838 3,250 3,632 (2,682) - (12,200) -

185,010 188,422 857,789 857,003 -$ $ 43 $ $ 207

- (639) - (1,932)

$ - $ (596) _$ ___ - $ (1,725)

OPERATING REVENUES

Passenger Revenue

Other Operating Revenue

Sub-Total - Operating Revenue

Shared Ride Program

TOTAL REVENUE AVAILABLE FOR OPERATIONS

OPERATING EXPENSES


OPERATING SUBSIDIES



SURPLUS/(DEFICIT) AFTER INVESTMENT GAIN/(LOSS)

Page 1.3 7/21/17

$

$

$


CONSOLIDATING STATEMENT OF INCOME ONE MONTH ENDED JUNE 30, 2017

(THOUSANDS)

CITY REGIONAL TRANSIT VICTORY FRONTIER RAIL DIVISION DIVISION DIVISION DIVISION

21,217 $ 1,697 $ 414 $ 11,113 $ 1,953 179 61 1,065

23,170 1,876 475 12,178 1,366 - - -

24,536 1,876 475 12,178

70,253 4,842 2,429 18,806

(45,717) (2,966) (1,954) (6,628)

49,965 3,555 2,150 7,690

4,248 $ 589 $ 196 $ 1,062 $ (836) (10) (2) (148)

3,412 $ 579 $ 194 $ 914 $

BUDGET VARIANCE TOTAL BUDGET SEPTA AMOUNT AMOUNT PERCENT

34,441 $ 34,922 $ (481) (1.38)

3,258 2,886 372 12.89

37,699 37,808 (109) (0.29) 1,366 1,667 (301) (18.06)

39,065 39,475 (410) (1.04)

96,330 103,633 7,303 7.05

(57,265) (64,158) 6,893 10.74

63,360 64,158 (798) (1.24)

6,095 $ - $ 6,095

(996) - (996)

5,099 $ - $ 5,099

OPERATING REVENUES

Passenger Revenue Shared Ride Program Investment Income Other Income

TOTAL OPERATING REVENUE

OPERATING EXPENSES

Labor, including Paid Absences Fringe Benefits Material & Services Injuries & Damages Propulsion Power Fixed Rent Fuel Depreciation Budget Reduction

TOTAL OPERATING EXPENSES


OPERATING SUBSIDIES

Federal State Local Lease CosUDebt Service Other-Route Guarantees State and Local Budget Reduction

TOTAL SUBSIDIES



SURPLUS AFTER INVESTMENT GAIN/(LOSS)

Page 1.4 7/21117


CONSOLIDATING STATEMENT OF REVENUES AND EXPENSES ONE MONTH ENDED JUNE 30, 2017

(THOUSANDS)

CITY TRANSIT VICTORY FRONTIER DIVISION DIVISION DIVISION

BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL

$ 21,880 $ 21,217 $ 1,633 1,697 497 $ 414 1,667 1,366 - - - -

41 78 3 3 - 2 1,611 1,875 171 176 62 59

~199 24,536 1,807 1,876 559 475

31,001 29,199 3,388 3,430 1,375 1,288 27,203 16,792 2,335 1,313 731 456 12,024 20,850 1,418 1,744 290 365 1,894 (487) 123 (2,006) 23 164 1,123 934 114 101 - -

214 400 12 13 4 5 1,437 1,354 196 228 144 147 1,119 1,211 12 19 4 4

(8,163) - (998) - (357) -67,852 70,253 6,600 4,842 2,214 2,429

(42,653) (45,717) (4,793) (2,966) (1,655) (1,954)

2,256 2,462 273 220 118 116 39,923 38,952 4,787 2,885 1,600 1,714

5,988 5,843 717 433 240 257 2,546 2,681 14 17 3 3

103 27 - - 51 60 (8,163) - (998) - (357) -42,653 49,965 4,793 3,555 1,655 2,150

$ $ 4,248 $ - $ 589 $ - $ 196

- (836) - (10) - (2)

$ $ 3,412 $ - $ 579 $ $ 194

REGIONAL RAIL DIVISION TOTAL SEPTA

BUDGET ACTUAL BUDGET ACTUAL -$ 10,912 $ 11,113 $ 34,922 $ 34,441

- - 1,667 1,366 37 73 81 156

961 992 2,805 3,102

11,910 12,178 39,475 39,065

9,599 10,107 45,363 44,024 8,739 4,856 39,008 23,417 8,771 1,834 22,503 24,793

172 (142) 2,212 (2,471) 1,695 1,437 2,932 2,472

101 115 331 533 35 32 1,812 1,761

537 567 1,672 1,801 (2,682) - (12,200) 26,967 18,806 103,633 96,330

(15,057) (6,628) (64,158) (57,265)

582 226 3,229 3,024 10,030 2,180 56,340 45,731

1,506 326 8,451 6,859 5,504 4,404 8,067 7,105

117 554 271 641 (2,682) - (12,200) 15,057 7,690 64,158 63,360 -

$ - $ 1,062 $ - $ 6,095

- (148) (996)

$ - $ 914 $ $ 5,099


GROUP 2 - CITY TRANSIT DIVISION


BUDGET

AMOUNT

$ 21,880

$

335

22,215

2,984

25,199

76,015

(50,816)

50,816

4,980

467

14,000

59

Page 2. 1 7/21/2017


CITY TRANSIT DIVISION COMPARATIVE STATEMENT OF INCOME

PERIOD ENDED JUNE 30. 2017

(THOUSANDS)

ONE MONTH ENDED JUNE 30, 2017

THIS YEAR LAST YEAR

ACTUAL

AMOUNT

$ 21,217

$

1,953

23,170

1,366

24,536

70,253

(45,717)

49,965

4,248

(836)

3,412

4,691

390

13,752

52

ACTUAL

BETTER/

(WORSE)

BUDGET%

(3.03)

4.30

(54.22)

(2.63)

7.58

10.03

(1.67)

(5.80)

(1649)

(1.77)

(11.86)

ACTUAL

AMOUNT

$ 24,668

$

2,639

27,307

1,541

28,848

66,444

(37,596)

37,615

19

(255)

(236)

5,604

423

15,551

60

ACTUAL

BETTER/

(WORSE)

LAST YEAR%

OPERATING REVENUES

(13.99) Passenger Revenue

(25.99) Other Operating Revenue

(15.15) Sub-Total - Operating Revenue

(11.36) Shared Ride Program

(14.95) TOTAL REVENUE AVAILABLE FOR OPERATIONS

(5.73) OPERATING EXPENSES

(21.60) DEFICIT BEFORE SUBSIDIES

32.83 OPERATING SUBSIDIES

SURPLUS/(DEFICIT) AFTER SUBSIDIES


SURPLUS/(DEFICIT) AFTER INVESTMENT GAIN/(LOSS)

(16.29) TOTAL VEHICLE MILES

(7.80) SHARED RIDE PROGRAM IN ABOVE

(11.57) REVENUE PASSENGER JOURNEYS

(13.33) SHARED RIDE PROGRAM IN ABOVE

$

$

BUDGET

AMOUNT

297,335

19,618

316,953

20,317

337,270

922,336

(585,066)

585,066

65,558

5,765

191,412

746

TWELVE MONTHS ENDED JUNE 30, 2017

THIS YEAR

$

$

ACTUAL

AMOUNT

275,763

22,751

298,514

17,205

315,719

889,019

(573,300)

573,419

119

(1,256)

(1,137)

62,226

5,128

175,827

669

ACTUAL

BETTER/

(WORSE)

BUDGET%

(7.26)

15.97

(5.82)

(15.32)

(6.39)

3.61

2.01

(1.99)

(5.08)

(11 05)

(8.14)

(10.32)

LAST YEAR

ACTUAL

AMOUNT

$ 288,965

21,877

310,842

18,575

329,417

871,177

(541,760)

541,902

142

___ (134)

$ 8

63,671

5,344

186,236

733

ACTUAL

BETTER/

(WORSE)

LAST YEAR%

(4.57)

4.00

(3.97)

(7.38)

(4.16)

(2.05)

(5.82)

5.82

(2.27)

(4 04)

(5.59)

(8.73)

$

$

LAST YEAR AMOUNT

24,668 130

2,509 27,307 __!2i!_ 28,848

55,579 14, 141 (7,959)

912 250

2,421 _J_J_QQ__ 66,444

(37,596)

2,303 29,865

2,938 2,579

EQL 37,615

19

(255)

(236)

Page 2.2 7/21/2017

$

$

THIS YEAR ACTUAL BETTER (WORSE) LAST YEAR AMOUNT %

(3,451) (13.99) (52) (40.00)

(634) (25.27) (4,137) (15.15)

(175) (11.36) (4,312) (14.95)

9,588 17.25 (6,709) (47.44) (7,472) 93.88

(22) (2.41) (150) (60.00)

1,067 44.07 (111) (10.09)

(3,809) (5.73)

(8,121) (21.60)

159 6.90 9,087 30.43 2,905 98.88

102 3.96 97

12,350 32.83

4,229

(581)

3,648


CITY TRANSIT DIVISION DETAIL INCOME STATEMENT

ONE MONTH ENDED JUNE 30. 2017

(THOUSANDS)

THIS YEAR THIS YEAR ACTUAL BUDGET ACTUAL BETTER(WORSE)BUDGET AMOUNT AMOUNT AMOUNT %

OPERATING REVENUES Passenger Revenue $ 21,880 $ 21,217 $ (663) (3.03) Investment Income 41 78 37 90.24 Other Income 294 1,875 1,581

SUB-TOTAL 22,215 23, 170 955 4.30 Shared Ride Program 2,984 1,366 (1,618) (54.22)

TOTAL REVENUE AVAILABLE FOR OPERATIONS 25, 199 24,536 (663) (2.63)

OPERATING EXPENSES Labor & Fringe Benefits 58,204 45,991 12,213 20.98 Material & Services 12,024 20,850 (8,826) (73.40) Injuries & Damages 1,894 (487) 2,381 Propulsion Power 1,123 934 189 16.83 Fixed Rent 214 400 (186) (86.92) Fuel 1,437 1,354 83 5.78 Depreciation 1, 119 1,211 (92) (8.22)

TOTAL OPERATING EXPENSES 76,015 70,253 5,762 7.58

DEFICIT BEFORE SUBSIDIES (50,816) (45,717) 5,099 10.03

OPERATING SUBSIDIES Federal 2,256 2,462 206 9.13 State 39,923 38,952 (971) (2.43) Local 5,988 5,843 (145) (2.42) Lease Cost/Debt Service 2,546 2,681 135 5.30 Other - Route Guarantees 103 27 (76) (73.79)

TOTAL OPERATING SUBSIDIES 50,816 49,965 (851) (1.67)

SURPLUS/(DEFICIT) AFTER SUBSIDIES 4,248 4,248

Unrealized Investment Gain/(Loss) (836) (836)

SURPLUS/(DEFICIT) After Investment Gain/(Loss) $ $ 3,412 $ 3,412

$

$

LAST YEAR AMOUNT

288,965 801

21,076 310,842

18,575 329,417

661,842 145,174

8,560 12,933

3,269 26,580 12,819

871,177

(541,760)

26,800 423,284

61,951 28,757

1, 110 541,902

142

(134)

8

Page 2.3 7/2112017

$

$

THIS YEAR ACTUAL BETTER (WORSE) LAST YEAR

AMOUNT %

(13,202) (4.57) 118 14.73 756 3.59

(12,328) (3.97) (1,370) (7.38)

(13,698) (4.16)

(2,311) (0.35) (10,476) (7.22) (13,659)

1,440 11.13 (458) (14.01)

8,150 30.66 (528) (4.12)

(17,842) (2.05)

(31,540) (5.82)

(623) (2.32) 26,229 6.20

5,476 8.84 379 1.32

56 5.05 31,517 5.82

.@_ 15.99

(1, 122)

(1,145)


CITY TRANSIT DIVISION DETAIL INCOME STATEMENT


(THOUSANDS)

THIS YEAR THIS YEAR ACTUAL BUDGET ACTUAL BETTER (WORSE) BUDGET AMOUNT AMOUNT AMOUNT %

OPERATING REVENUES Passenger Revenue $ 297,335 $ 275,763 $ (21,572) (7.26) Investment Income 618 919 301 48.71 Other Income 19,000 21,832 2,832 14.91

SUB-TOTAL 316,953 298,514 (18,439) (5.82) Shared Ride Program 20,317 17,205 (3,112) (15 32)

TOTAL REVENUE AVAILABLE FOR OPERATIONS 337,270 315,719 (21,551) (6.39)

OPERATING EXPENSES Labor & Fringe Benefits 703,379 664,153 39,226 5.58 Material & Services 144,841 155,650 (10,809) (7.46) Injuries & Damages 24,600 22,219 2,381 9.68 Propulsion Power 13,548 11,493 2,055 15.17 Fixed Rent 2,675 3,727 (1,052) (39.33) Fuel 20,083 18,430 1,653 8.23 Depreciation 13,210 13,347 (137) (1 04)



OPERATING SUBSIDIES Federal 26,475 26,177 (298) (113) State 459,443 449,513 (9,930) (2.16) Local 68,916 67,427 (1,489) (2.16) Lease CosUDebt Service 29,002 29,136 134 0.46 Other - Route Guarantees 1,230 1,166 (64) (5 20)

TOTAL OPERATING SUBSIDIES 585,066 573,419 (11,647) (1 99)

SURPLUS/(DEFICIT) AFTER SUBSIDIES 119 119

Unrealized Investment Gain/(Loss) (1,256) (1,256)

SURPLUS/(DEFICIT) After Investment Gain/(Loss) $ $ (1,137) $ (1, 137)


GROUP 3 - VICTORY DIVISION


BUDGET

AMOUNT

$

$

1,633

174

--1,807

7,598

(5,791)

5,791

927

939

Page 3.1 7/2112017


VICTORY DIVISION COMPARATIVE STATEMENT OF INCOME

PERIOD ENDED JUNE 30 2017

(THOUSANDS)


THIS YEAR LAST YEAR --

ACTUAL ACTUAL

BETTER/ BETTER/

ACTUAL (WORSE) ACTUAL (WORSE) BUDGET

AMOUNT BUDGET% AMOUNT LAST YEAR% AMOUNT -OPERATING REVENUES

$ 1,697 3.92 $ 2,058 (17.54) Passenger Revenue $ 23,275

179 2.87 545 (67.16) Other Operating Revenue 2,196

1,876 3.82 2,603 (27.93) TOTAL REVENUE AVAILABLE FOR OPERATIONS 25,471

4,842 36.27 4,963 2.44 OPERATING EXPENSES 97,472

(2,966) 48.78 (2,360) (2568) DEFICIT BEFORE SUBSIDIES (72,001)

3,555 (38.61) 2,362 50.51 OPERATING SUBSIDIES 72,001

589 2 SURPLUS/(DEFICIT) AFTER SUBSIDIES -(10) 3 Unrealized Investment Gain/(Loss)

$ 579 $ 5 SURPLUSl(DEFICIT) AFTER INVESTMENT GAIN/(LOSS) $

880 (5.07) 1,060 (16.98) TOTAL VEHICLE MILES 12,055

977 4.05 1,167 (16.28) REVENUE PASSENGER JOURNEYS 13,566


THIS YEAR LAST YEAR

ACTUAL ACTUAL

BETTER/ BETTER/

ACTUAL (WORSE) ACTUAL (WORSE)

AMOUNT BUDGET% AMOUNT LAST YEAR%

$ 22,116 (498) $ 22,943 (3.60)

2,314 5.37 2,497 (7.33)

24,430 (409) 25,440 (3.97)

94,504 3.04 90,900 (3.96)

(70,074) 2.68 (65,460) (7.05)

70,109 (2.63) 65,478 7.07

35 18

(31) 13

$ 4 $ 31

11,880 (1.45) 11,580 2.59

13,167 (2 94) 13,630 (3.40)

$

$

LAST YEAR AMOUNT

2,058 7

538 2,603

5,050 1,296

(1,889) 83 14

392 17

4,963

(2,360)

202 2,037

109 14

2,362

2

3

5

Page 3.2 7/21/2017

$

$


AMOUNT %

(361) (17.54) (4) (57.14)

(362) (67.29) (727) (27.93)

307 6.08 (448) (34.57) 117 (6.19) (18) (21.69)

1 7.14 164 41.84

(2) (11.76) 121 2.44

(606) (25.68)

18 8.91 848 41.63 324

3 21.43

1,193 50.51

587

(13)

574


VICTORY DIVISION DETAIL INCOME STATEMENT


(THOUSANDS)


OPERATING REVENUES Passenger Revenue $ 1,633 $ 1,697 $ 64 3.92 Investment Income 3 3 Other Income 171 176 5 2.92

TOTAL REVENUE AVAILABLE FOR OPERATIONS 1,807 1,876 69 3.82

OPERATING EXPENSES Labor & Fringe Benefits 5,723 4,743 980 17.12 Material & Services 1,418 1,744 (326) (22.99) Injuries & Damages 123 (2,006) 2,129 Propulsion Power 114 101 13 11.40 Fixed Rent 12 13 (1) (8.33) Fuel 196 228 (32) (16.33) Depreciation 12 19 (7) (58.33)

TOTAL OPERATING EXPENSES 7,598 __ 4,842 2,756 36.27

DEFICIT BEFORE SUBSIDIES (5,791) _(2,966) 2,825 48.78

OPERATING SUBSIDIES Federal 273 220 (53) (19.41) State 4,787 2,885 (1,902) (39.73) Local 717 433 (284) (39.61) Lease Cost/Debt Service 14 17 3 21.43 Other - Route Guarantees

TOTAL OPERATING SUBSIDIES 5,791 3,555 (2,236) (38.61)


Unrealized Investment Gain/(Loss) (10) __ (10)

SURPLUS/(DEFICIT) AFTER INVESTMENT GAIN/(LOSS) $ $ 579 $ 579

s

s

LAST YEAR AMOUNT

22,943 40

2,457 25,440

67,216 19,422 (1,770) 1,219

152 4,463

198 90,900

(65,460)

3,367 54,058

7,912 141

65,4 78

18

13

31

Page 3.3 7/21/2017

$

$

THIS YEAR ACTUAL BETTER (WORSE) LAST YEAR AMOUNT %

(827) (3.60) 5 12.50

(188) (7.65)

~ (3.97)

(3,894) (5.79) 172 0.89

(1,241) 70.11 1 0.08 3 1.97

1,368 30.65 (13) (6 57)

(3,604) (3.96)

(4,614) (7.05)

(44) (1.31) 3,883 7.18

779 9.85 13 9.22

4.6~ 7.07

17 (94.44)

(44)

(27)


VICTORY DIVISION DETAIL INCOME STATEMENT


(THOUSANDS)


OPERATING REVENUES Passenger Revenue $ 23,275 $ 22,116 $ (1,159) (4.98) Investment Income 33 45 12 36.36 Other Income 2,163 2,269 106 4.90


OPERATING EXPENSES Labor & Fringe Benefits 72,572 71,110 1,462 2.01 Material & Services 18,600 19,250 (650) (3.49) Injuries & Damages 1,600 (529) 2,129 Propulsion Power 1,344 1,218 126 9.38 Fixed Rent 144 149 (5) (3.47) Fuel 2,997 3,095 (98) (3.27) Depreciation 215 211 4 1.86



OPERATING SUBSIDIES Federal 3,360 3,323 (37) (1.10) State 59,557 57,941 (1,616) (2.71) Local 8,933 8,691 (242) (2.71) Lease CosUDebt Service 151 154 3 1.99 Other - Route Guarantees

TOTAL OPERATING SUBSIDIES 72,001 70, 109 (1,892) (2.63)





GROUP 4 - FRONTIER DIVISION


BUDGET

AMOUNT

$

$

497

62

--559

2,571

(2,012)

2,012

428

262

Page4.1 7/21/2017


FRONTIER DIVISION COMPARATIVE STATEMENT OF INCOME


(THOUSANDS)


THIS YEAR LAST YEAR ---

ACTUAL ACTUAL

BETTER/ BETTER/


AMOUNT BUDGET% AMOUNT LAST YEAR% AMOUNT --OPERATING REVENUES

$ 414 (16.70) $ 645 (35.81) Passenger Revenue $ 6,827

61 (1.61) 70 (12 86) Other Operating Revenue 735

475 (15.03) 715 (3357) TOTAL REVENUE AVAILABLE FOR OPERATIONS 7,562


(1,954) 2.88 (2,046) 4.50 DEFICIT BEFORE SUBSIDIES (25,230)

2,150 6.86 2,046 5.08 OPERATING SUBSIDIES 25,230

196 0 SURPLUS/(DEFICIT) AFTER SUBSIDIES -

(2) Unrealized Investment Gain/(Loss)

$ 194 $ SURPLUS/(DEFICIT) AFTER INVESTMENT GAIN/(LOSS) $

427 (0.23) 481 (11.23) TOTAL VEHICLE MILES 5,637

230 (12.21) 332 (30.72) REVENUE PASSENGER JOURNEYS 3,642


THIS YEAR LAST YEAR

ACTUAL ACTUAL

BETTER/ BETTER/



$ 6,327 (7.32) $ 6,629 (4.56)

759 3.27 728 4.26

7,086 (6.29) 7,357 (3.68)

32,129 2.02 31,451 (2.16)

(25,043) 0.74 (24,094) (3.94)

25,053 (0.70) 24,100 3.95

10 6

(6) 3

$ 4 $ 9

5,580 (1 01) 5,316 4.97

3,450 (5.27) 3,506 (1.60)

$

$

LAST YEAR AMOUNT

645 2

68 715

2,705 199

(398) 5

246 4

2,761

(2,046)

130 1,681

182 2

51 2,046

Page 4.2 7/21/2017

$

$


AMOUNT %

(231) (35.81)

(9) (13.24) (240) (33.57)

961 35.53 (166) (83.42) (562)

99 40.24

332 12.02

92 4.50

(14) (10.77) 33 1.96 75 41.21

1 50.00 9 17.65

104 5.08

196

0_

194


FRONTIER DIVISION DETAIL INCOME STATEMENT


(THOUSANDS)

THIS YEAR THIS YEAR ACTUAL

BUDGET ACTUAL BETTER (WORSE) BUDGET

AMOUNT AMOUNT AMOUNT %

OPERATING REVENUES Passenger Revenue $ 497 $ 414 $ (83) (16.70)

Investment Income 2 2

Other Income 62 59 (3) (4.84)

TOTAL REVENUE AVAILABLE FOR OPERATIONS 559 475 (84) (15.03)

OPERATING EXPENSES Labor & Fringe Benefits 2,106 1,744 362 17.19

Material & Services 290 365 (75) (25.86)

Injuries & Damages 23 164 (141)

Fixed Rent 4 5 (1) (25.00)

Fuel 144 147 (3) (2.08)

Depreciation 4 4 -------

TOTAL OPERATING EXPENSES 2,571 2,429 142 5.52

DEFICIT BEFORE SUBSIDIES (2,012) (1,954) 58 2.88

OPERATING SUBSIDIES Federal 118 116 (2) (1.69)

State 1,600 1,714 114 7.13

Local 240 257 17 7.08

Lease Cost/Debt Service 3 3 Other - Route Guarantees 51 60 9 17.65

TOTAL OPERATING SUBSIDIES 2,012 2,150 138 6.86




$

$

LAST YEAR AMOUNT

6,629

11 717

7,357

26,102

3,133 (691)

52 2,809

46 31,451

(24,094)

1,208 19,397

2,839

38 618

24, 100

6

3

9

Page 4.3 7/21/2017

$

$


AMOUNT %

(302) (4.56) 2 18.18

29 4.04 (271) (3.68)

394 1.51 (735) (23.46)

(1,132)

2 3.85 794 28.27

(1) (2.17) (678) (2.16)

(949) (3.94)

(50) (4.14) 800 4.12 191 6.73

2 5.26 10 1.62

953 3.95

4 (66.67)

(9)

(5)


FRONTIER DIVISION DETAIL INCOME STATEMENT

TWELVE MONTHS ENDED JUNE 30 2017

(THOUSANDS)




OPERATING REVENUES

Passenger Revenue $ 6,827 $ 6,327 $ (500) (7.32) Investment Income 9 13 4 44.44 Other Income 726 746 20 2.75

TOTAL REVENUE AVAILABLE FOR OPERATIONS 7,562 7,086 (476) (6 29)

OPERATING EXPENSES Labor & Fringe Benefits 26,558 25,708 850 3.20 Material & Services 3,671 3,868 (197) (5.37) Injuries & Damages 300 441 (141) (47.00) Fixed Rent 49 50 (1) (2.04) Fuel 2,163 2,015 148 6.84 Depreciation 51 47 4 7.84

TOTAL OPERATING EXPENSES 32,792 32,129 663 2 02

DEFICIT BEFORE SUBSIDIES (25,230) (25,043) 187 0.74

OPERATING SUBSIDIES Federal 1,175 1,158 (17) (1.45) State 20,344 20,197 (147) (0.72) Local 3,052 3,030 (22) (0.72) Lease CosUDebt Service 39 40 1 2.56 Other • Route Guarantees 620 628 8 1.29

TOTAL OPERATING SUBSIDIES 25,230 25,053 (177) (0.70)





GROUP 5 - REGIONAL RAIL DIVISION


BUDGET

AMOUNT

$

$

10,912

998

---11,910

29,649

(17,739)

17,739

--

1,578

2.615

Page 5.1 7/21/2017


REGIONAL RAIL DIVISION COMPARATIVE STATEMENT OF INCOME


(THOUSANDS)


THIS YEAR LAST YEAR ---

ACTUAL ACTUAL

BETTER/ BETTER/


AMOUNT BUDGET% AMOUNT LAST YEAR% AMOUNT

OPERATING REVENUES

$ 11,113 1.84 $ 13,232 (16.01) Passenger Revenue $ 154,063

1,065 6 71 1,178 (9.59) Other Operating Revenue 12,184

12,178 2.25 14,410 (15.49) TOTAL REVENUE AVAILABLE FOR OPERATIONS 166,247


(6,628) 62.64 (11,923) 44.41 DEFICIT BEFORE SUBSIDIES (187,692)

7,690 (56.65) 11,926 (35.52) OPERATING SUBSIDIES 187,692

1,062 3 SURPLUS/(DEFICIT) AFTER SUBSIDIES

(148) 72 Unrealized Investment Gain/(Loss)

$ 914 $ 75 SURPLUS/(DEFICIT) AFTER INVESTMENT GAIN/(LOSS) $

1,615 2.34 1,826 (11.56) TOTAL VEHICLE MILES 20,797

2,694 3.02 3,343 (19.41) REVENUE PASSENGER JOURNEYS 38,130


THIS YEAR LAST YEAR

ACTUAL ACTUAL

BETTER/ BETTER/



$ 137,195 (10.95) $ 151,908 (9.69)

11,847 (2.77) 12,345 (4.03)

149,042 (10.35) 164,253 (9.26)

337,421 4.67 325,048 (3.81)

(188,379) (0.37) (160,795) (17.15)

188,422 0.39 160,823 17.16

43 28

(639) 206

$ (596) $ 234

20,508 (1.39) 20,480 0.14

34,653 (9.12) 37,701 (8.08)

$

$

LAST YEAR AMOUNT

13,232 138

1,040 14,410

18,965 8,480

(3,113) 1,411

99 47

444

26,333

(11,923)

455 5,468

512 5,141

350 11,926

3

72

75

Page 5.2 7/21/2017

$

$


AMOUNT %

(2,119) (16.01)

(65) (47.10) (48) (4.62)

(2,232) (15.49)

4,002 21.10 6,646 78.37

(2,971) 95.44

(26) (1.84)

(16) (16.16)

15 31.91

(123) (27.70)

7,527 28.58

5,295 44.41

(229) (50.33) (3,288) (60.13)

(186) (36.33)

(737) (14.34)

204 58.29 (4,236) (35.52)

1,059

(220)_

839

(UNAUDITED)

SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY REGIONAL RAIL DIVISION

DETAIL INCOME STATEMENT ONE MONTH ENDED JUNE 30, 2017

(THOUSANDS)




OPERATING REVENUES

Passenger Revenue $ 10,912 $ 11,113 $ 201 1.84

Investment Income 37 73 36 97.30

Other Income 961 992 31 3.23

TOTAL REVENUE AVAILABLE FOR OPERATIONS 11,910 12,178 268 2.25

OPERATING EXPENSES Labor & Fringe Benefits 18,338 14,963 3,375 18.40

Material & Services 8,771 1,834 6,937 79.09

Injuries & Damages 172 (142) 314

Propulsion Power 1,695 1,437 258 15.22

Fixed Rent 101 115 (14) (13.86)

Fuel 35 32 3 8.57

Depreciation 537 567 (30) (5.59)


DEFICIT BEFORE SUBSIDIES (17,739) (6,628) 11, 111 62.64

OPERATING SUBSIDIES Federal 582 226 (356) (61.17)

State 10,030 2,180 (7,850) (78.27)

Local 1,506 326 (1,180) (78.35)

Lease Cost/Debt Service 5,504 4,404 (1,100) (19.99)

Other - Route Guarantees 117 554 437

TOTAL OPERATING SUBSIDIES 17,739 7,690 (10,049) (56.65)

SURPLUS/(DEFICIT) AFTER SUBSIDIES 1,062 1,062



$

$

LAST YEAR AMOUNT

151,908 645

11,700 164,253

204,342 95,607

(463) 18,652

1,031 484

5,395 325,048

(160,795)

5,257 84,382 12,349 57,340

1,495 160,823

28

206

234

Page 5.3 7/21/2017

$

$


AMOUNT %

(14,713) (9.69) 317 49.15

(815) (6.97) (15,211) (9.26)

(5,524) (2.70) 1,205 1.26

(2,349) (204) (1.09)

(4,944) 87 17.98

(644) (11.94) (12,373) (3.81)

(27,584) (17.15)

680 12.94 19,128 22.67

3,177 25.73 4,271 7.45

343 22.94 27,599 17.16

15 (53 57)

(845)

(830)

(UNAUDITED)

SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY REGIONAL RAIL DIVISION

DETAIL INCOME STATEMENT TWELVE MONTHS ENDED JUNE 30. 2017

(THOUSANDS)




OPERATING REVENUES Passenger Revenue $ 154,063 $ 137, 195 $ (16,868) (10.95) Investment Income 490 962 472 96.33 Other Income 11,694 10,885 (809) (6.92)


OPERATING EXPENSES Labor & Fringe Benefits 212,507 209,866 2,641 1.24 Material & Services 111,194 94,402 16,792 15.10 Injuries & Damages 2,200 1,886 314 14.27 Propulsion Power 20,292 18,856 1,436 7.08 Fixed Rent 1,208 5,975 (4,767) Fuel 514 397 117 22.76 Depreciation 6,024 6,039 (15) (0.25)


DEFICIT BEFORE SUBSIDIES (187,692) (188,379) (687) (0.37)

OPERATING SUBSIDIES Federal 5,790 5,937 147 2.54 State 102,426 103,510 1,084 1.06 Local 15,365 15,526 161 1.05 Lease Cost/Debt Service 62,711 61,611 (1,100) (175) Other - Route Guarantees 1,400 1,838 438 31.29

TOTAL OPERATING SUBSIDIES 187,692 ~422 730 0.39



SURPLUS/(DEFICIT) AFTER INVESTMENT GAIN/(LOSS) $ $ (596) $ (596)

FROM PETER WINSLOW EXHIBIT "B"

ZERO EMISSION BUS FACT SHEET

I. Our State Should Invest EMT Funds in Zero Emission Buses

Our state should use Environmental Mitigation Trust (EMT) funds to invest in zero emission buses and their charging infrastructure. Fleets of school, transit, and shuttle buses are already being converted to these clean, cost-effective, alternatives to traditional diesel power. Transit agencies in Shreveport, Lexington, Louisville, Reno, Columbus, Dallas, Oakland, and the Quad-Cities area of Illinois, are just a handful of those investing in electric and hydrogen fuel cell buses. 1 Outside of the U.S., Tel Aviv,2 London,3 Barcelona, 4 and a number of Chinese cities5

have invested in electric buses and charging stations. As of2015 there were over 170,000 electric buses on the road worldwide.6 Navigant Research projects that "the battery EV (BEV) is expected to be the leading type of electric powertrain for buses through 2026."7

EMT funds are available to further support the adoption of these highly efficient alternatives to fossil fueled transportation. In addition EMT covers installation of charging infrastructure. As described in greater detail below, the economics already favor widespread investment in zero emission buses and their supporting infrastructure. Investment in these buses today will speed further integration as these technologies come to scale, bringing measurable economic and environmental benefits to the communities they service.

By using EMT funds to procure zero emission buses now, our transit agencies can lock in annual savings on fuel ($40,000-$45,000 per year per bus over diesel) and maintenance. The agencies can then procure additional zero emission buses, which will lock in yet further cost savings going forward for the agency.

A. EV Buses Already Have Lower Comparative Lifetime Costs Than Diesel Buses and CNG Buses--And Costs Continue To Drop Rapidly.

As discussed below, even today the lifetime cost of an electric bus is significantly lower than that of a new diesel or alternative fuel bus, though the upfront cost is higher. The all-in cost of buses--that is, the upfront cost of the bus purchase, fuel costs and maintenance costs--for

1 See Proterra, Our Customers, hllrs:i111 \\\\ .pwlcrra.cum:,nir-slnf\ luur-customcrs/, for a full list of just one company's sales. 2 Sharon Udasin, Five Electric Buses to Begin Running in Tel Aviv, Jerusalem Post, Sept. 16, 2016, hllp:.'/1\ \\\\ .jpost.rom!Busi11css-a11d-lrrno1 ationil \·ch/h1c-ckctric-buws-to-bcgi11-runnin12-in-Tcl-A1iv-46787 3. 3 Mayor Unveils First Fully Electric Bus Routes for Central London, Sept. 9, 2016, b.!J.P..~:/!~.1:..~.1:..~.1:.JQlliJ.s!..IJ.,g'!~-'gl~J1!:c:..~0::!.:f_l_~:i:L~2'J.1J.i!l.!1..!:i.l1.iD.rn.Y~> 1· -tm~s.!b:Jlr!i.L:fi!_l_!l_-c I cr.t r i c.:.b_\l~-1·11 utc2. 4 Katie Sadler, Barcelona Unveils Two New Electric Buses and a Rapid-Charging Station, Euro Transport, Sept. 21, 2016, h!Jp:/.\\\~.\\,.<;_\!.1\)\nm~rn.!.r.\.1iJ.i1g;_tfin~:,~:.~!rn/;(lfr25/nc;:-\'.>/in~!h.1.2\.1:.Y.:.nc;\\~/b\lrc;c;J\~11A:£!££\ric;:!:n1)£S:i:m~i!J.~-t.:.b~1rging: stat ion/. 5 See Lindsay Dodgson, Buses and Batteries: A Rising Sector, May 31, 2016, ht!p:.112~:2rn .power-. tech no 1og1 .l.'11 m: !'Cat urcs! feat un;buscs~! nd-ba\\ cric\<.~:ri sing-~cctn r-.f 9().f 9 5bL 6 International Energy Agency, Global EV Outlook 2016, 24-25 available at https: 1 \n''' .ica.nnc/publicalionsfli·ccpubl [!:.al ions puhlicatiun.'( lloha I I· V Outlook 201 (l.pd f. 7 Electric drive buses include hybrid, fuel cell, and all-electric vehicles. Navigant Research, Electric Drive Buses, h!tps: 1 ;11 w11 .ri.11 i g~rntr,·s,-;ll'ch.com.'rcscarch·ck.o,:1_ric-dri 1 c-busc~ (last visited Oct. 10, 2016).

1

electric buses is around $1,000,000, and around $1,400,000 for diesel and CNG buses. 8

Moreover, as EV bus manufacturing scales up, and as battery costs--the most expensive part of an EV--plummet over time, EV bus prices will fall rapidly as well.

Up Front Costs:

The current sticker price of a new electric bus is about $750,000.9 A comparable new diesel vehicle costs $480,000 and a compressed natural gas (CNG) bus $490,000, while a Fuel Cell Bus (FCB) costs over $1,000,000. 10 Transitioning to electric technology can also be accomplished through repowering existing diesel vehicles with all-electric components, a process that costs around $500,000. 11

Government estimates of zero emission bus prices sharply decline as advances in battery manufacturing and increased demand drive down costs. By 2025--within the I 0 year timeframe of the VW EMT grant program--an electric bus is expected to cost $480,000, equal to or less than the cost of a new diesel vehicle. 12 Much of this decrease is attributable to projected reductions in battery costs. A California Air Resources Board-conducted literature review concluded that studies consistently place the cost of batteries below $500/kWh by 2020, and approaching $200/k Wh by 2030. 13 These estimates are already outdated and clearly understate the rate of reductions in battery costs, which again are the most expensive part of an EV. GM announced that already, even in 2016, it was procuring batteries for its Bolt EV for $145/kWh. 14

As explained below, even without future reductions in costs, EV buses, with their far lower fuel, operating, and maintenance costs, exhibit lower lifetime costs than diesel and CNG buses.

Fuel Savings:

Electric buses offer tremendous fuel savings. For example, Proterra's all-electric Catalyst bus registers a fuel efficiency averaging 17.48 miles per diesel gallon equivalent (MPDGe) of electric charge. 15 Electric costs vary by market but average $.I 2/k Wh nationally, or about $1.29

8 The Business Case For the Proterra Electric Bus, Aug. 3, 2015, h!1Q:L££~tmcmo.cu1ni2015/(l&Q.,}}husincss-cascprotcrra-dcctric-husi 9 Proterra's Catalyst bus cost $749,000 in 2016 while BYD's all-electric bus costs $770,000. Draft, Cost Model Discussion with ACT Cost Subgroup, slides 9-10 (Aug. 23, 2016) available at h\tpj·£Al1..r.~_1_1:g/,~i!~'.~!~l~:nm!JJU~"o~'.L.Li\1~lt:~}.~ :L~~Q~t:%Y.1\lllcl.:l2b~'.!'-~~iJ~DL~iiUJ~-!3 !Ei::I~f!m:M cc ti 11 g-A u g20 I (!.pd f (hereinafter "Air Resources Board Cost Model"). 10 Id at slides 9 (CNG), 10 (diesel), 12 (Hydrogen Fuel Cell). 11 Repowering refers to the removal of the existing motor and drivetrain and replacement with all-electric components. See Rich Piellisch, 21 All-Electric ZEPS Buses for lndyGo, Dec. 8, 2014, .IJ]Jp;/;,\\\\.\\J}1:.~'..t.~mhHV£.l.>,\.'.~)m1f\1g'5f.l.:.Y~/;(!J4!J .. ?,/?.1 .. :.<1.J.l.:<;k\.'..l!:.i.<;.:.!.~'..P.~.:b.l1 .. 0.£.~.:.!li.r::.i..11r,lyg~)/ (21 rebuilds at a total cost of$12.2 million). 12 Air Resources Board Cost Model, slide 10 (all values in 2016 dollars). 13 Id. slide 11. 14 Jay Cole, GM: Chevrolet Bolt Arrives in 2016, $145/kWh Cell Cost, Volt Margin Improves $3,500, hllp:i !insidccvs.comil!m-chcnolct-bolt-l\ir-20 I 6- I 45k11 h-ccl l-cosl-1'1llt-111argin-imprmcs-3500/. 15 NREL, Foothill Transit Battery Electric Bus Demonstration Results, vii, Jan. 2016, available at http://\\\\ \\:fll'Cl.l!m !doc~!I\ I (10:-.1.i,'(15274.pdL

2

per gallon diesel equivalent. 16 An electric bus will consume about $5,000-$10,000 in electricity annually, far lower than the $50,000/yr spent on diesel or $30,000/yr spent on CNG to fuel a similar veh icle. 17 Notably, long range electric buses are available on the market. Proterra offers electric buses with mileage ranges of 49-350 miles per charge, 18and BYD sells a bus that goes approximately I 55 miles. 19 New Flyer is testing a hydrogen fuel cell bus with 300 miles of range.2° Companies such as Complete Coach Works offer rebuilt electric buses for lower cost than new buses.21

Diesel Buses average 3.26 miles per gallon (MPG)22 and average fuel prices between $2 and $3 per gallon.23 This equates to an average consumption of $50,000 of diesel fuel each year.24 CNG powered buses present a similar scenario. A CNG bus averages 4.5 I MPDGe25 and costs approximately $2.05 per gallon diesel equivalent.26 A CNG bus consumes an average $30,000 a year for fuel.27 FCBs are currently more expensive. FCBs are fueled by hydrogen, which costs approximately $8/kg in 2016.28

Variability in fuel supply also increases the difficulty of predicting an operating budget for a diesel, or CNG dependent transportation fleet. While long-term fuel contracts can insulate against these fluctuations, shifts in real world prices can still impact operations when negotiating those contracts.

O&M Costs:

Electric buses also have substantially lower operating and maintenance (O&M) expenses as compared to their diesel and CNG alternatives. With an electric or hydrogen fuel cell bus, there are no oil changes or emissions tests, fewer parts that can break, and less wear on braking systems. The average lifetime maintenance cost for an electric bus is just $.60/mile. This is a

16 U.S. Department of Transportation, Zero Emissions Bus Bene.fits !mrn:fhY\Y\L1@1l'.il2\~i:l<J.tion.go\:[r2zg 1hc11ctiJ2.::lli:: {Llh (last visited Oct. 10, 2016). It is important to consider that, for high power charging, additional costs beyond volumetric electricity use may be incurred depending on the applicable utility rate structure. In particular, demand charges - costs incurred for high rate of power flow - can make a significant difference in determining fuel costs. 17 California Air Resources Board, Technology Assessment: Medium and Heavy-Duty Battery Electric Trucks and Buses, Draft, IV-5 (Oct. 2015). 18 See Proterra Catalyst Bus Specifications, hltps:;i\\ 1111.prut.:rra.com/wp-contcnt/upluads/2016/08/ProtcrraL'!\.!!!..l'\\:Y.£bisl.~.~5.n.~.'::.0J!..0f,. 19 BYD, Electric Bus, http://www.byd.com/na/old/auto/ElectricBus.html. 20 Alex Roman, What's New in Electric Buses? Metro Magazine available at http://www.metromagazine.com/sustainabi lity/article/71194 7 /what-s-new-in-electric-buses. 21 Complete Coach Works, ZEPS Electric Remanufactured Transit Bus 111.t.r._;js..lJ!llI'l.~~\£\;.'2.ad1.com/zcps-tirnclapsc/. 22 U.S. Department of Energy, Alternative Fuels Data Center, Average Fuel Economy of Major Vehicle Categories, http:/ 1111111 .a tdc.cncrgv .!!_m \lat a/ I 03 I 0. 23 Average national price as of October 3, 2016 was $2.389/gallon, but varies greatly with underlying crude oil prices, see http:/;1111 ".cia.gO\·/pctrolcum/gasdicscl!. 24 California Air Resources Board, Literature Review on Transit Bus Maintenance Cost (Discussion Draft) at 7 (Aug. 2016) available at https:i/111111 .arb.ca.gm 'lllSJ1rO!!_,hu:-1ma intenancc cost.pdf. 2s Id. 26 U.S. Department of Energy, Clean Cities Alternative Fuel Price Report 4, tbl 2 (July 2016) available at http:c.'11 \\ \\ .aldc.CllCI"!!_\ .go1 \1plnads.·'puhl ication/altcrnaLi \ c rue I price report i uh 20 I (i.pd L 27 California Air Resources Board, Technology Assessment: Medium and Heavy-Duty Battery Electric Trucks and Buses, Draft, IV-5 (Oct. 2015). 28 Air Resources Board Cost Model, slide 20.

3

significant reduction from the $.85/mile associated with diesel and CNG fueled vehicles.29

Hydrogen fuel cell buses have an average maintenance cost of $1.00/mile.30 Proterra estimates that over a 12 year lifetime, an all-electric bus will save its operator $448,000 as compared to a traditional diesel vehicle, $408,000 as compared to a CNG vehicle, and $459,000 as compared to a diesel-hybrid vehicle.31

Charging Infrastructure Costs:

There are two options for electric bus charging infrastructure. First, a typical Class 3 slow charger can charge a bus in 3-5 hours. These chargers cost around $65,000 to purchase and install.32 Again, this cost can be covered by EMT funds. With advances in battery technology increasing bus ranges, new models can achieve up to 350 miles on a single charge, enough to allow an operator to charge its buses overnight and then operate all day without needing to stop to refuel. 33

Alternatively, fast chargers can provide 30 miles worth of charge in 8-13 minutes.34 This design allows a bus to charge during the course of its normal route, eliminating the need to come out of circulation to refuel.

B. EMT Funds Can Be Used To Purchase And Install EV Buses And Charging Equipment: Locked In O&M Savings Can Then Be Used To Expand The EV Bus Fleet, Generating Further Savings.35

EMT funds are available to meet the higher capital requirements of an electric bus fleet, allowing a transit agency to then lock in the lower lifetime costs of EV buses. The agency can then use the lifetime savings on fuel and maintenance to procure additional EV buses and build on lifetime savings going forward.

Government beneficiaries can receive up to 100% of the cost ofrepowering or replacing eligible buses with either electric, diesel, or alternative technologies. Non-Government beneficiaries can receive up to 75% of the cost to repower or replace with a new electric motor or bus; but only 40% of the cost ofrepowering with a new diesel or alternative fuel engine, and only 25% of the cost of a new diesel or alternative bus. But for the reasons discussed above and depicted in the table below, once capital costs are eliminated from the equation, investing in electricity is far preferable to diesel or CNG vehicles.

29 Air Resources Board Cost Model, slide 13. 30 Air Resources Board Cost Model, slide 16. 31 Proterra, The Proterra Catalyst 35-Foot Transit Vehicle, https:. 11, W\\ .protcrra.<.:orn/products/35-foot-c<ttahst/ (last visited Oct. 11, 2016). 32 Air Resources Board Cost Model, slide 24. 33 See Proterra Catalyst Bus Specifications, h!Jp5:/;\1\11y,prnJ\o'.rU1,<,;\llJJ..:\\l~:<,;t111Jg11JL\!.Dl<H!~h/;?QJ(l/.Q~/!'rnJg1:rn: Catahst-Vchiclc-Spcc~.pdf'. See also Aarian Marshall, This New Electric Bus Can Drive 350 Miles on One Charge, Wired, Sept. 12, 2016, !J.~.Urc/l.!\~Y~1_,\~:il:f~L<:.s~m!~JH\.,L(l_9.in\'._\.~.:~:l\o'.~tri c-.b .. \!~~:s:~m:~Ji!.\;..:.} .. 2.Q.::_111 i [£s-( i n<:..:.\:.barg cf. 34 NREL, Foothill Transit Battery Electric Bus Demonstration Results, 13, Jan. 2016, available at http:i/111111 .nrcl.12.01!doc~irv16ostiJi5274.pdL; see also Proterra Catalyst Bus Specifications, b.l!J2s:/ 11\~_,n.rotcrra.c1imi11 U:.1,:.w11cntupl!.~ht~120JJ_Ji()~/l'r()tcrra-('alal1 st-\! chic le-Specs.pJ L 35 See Partial Consent Decree, In re: Volkswagen "Clean Diesel" Marketing, Sales. Practices, and Products liability litigation. Case No.: MDL No. 2672 CRB (JSC) at 2-3 (N.D. Cal. June 28, 2016).

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Costs (Capital+ O&M) for Diesel, CNG, Electric Buses Diesel CNG Electric

Purchase Price $480,000 $490,000 $750,000 Fuel Cost (DGe) $2-3 $2.05 $1.29 Fuel Cost (annual) $50,000 $30,000 $5,000-$10,000 Fuel 3.26 4.51 17.48 Efficiency(MPDGe) O&M cost ($/mile) $.85 $.85 $.60 Additional Lifetime $448,000 $408,000 --O&M (compared to electric )36

Approximate $1,348,00037 -- $1, 180,00038

Lifetime Cost

These savings are not exclusive to transit buses. Electric School Buses are in use by a number of municipalities throughout the country.39 School buses are ideal fits for electrification. Buses typically operate two shifts each day, once in the morning and again in the afternoon. Down time between shifts allows buses to fully recharge. In King County, California, two electric school buses were estimated to save roughly 16 gallons of fuel per bus per day. This amounted to an annual fuel saving of over $11,000 per bus.40

36 Includes savings from fuel and maintenance, see Proterra, The Proterra Catalyst 35-Foot Transit Vehicle, hHr::.; 1/\D\\U!f\~l.\:!I~l,t,:.i!LU/.VS\l.Q\1_\:.\~D~:l~!<l.\:<;iJ!~til>Ji (last visited Oct. 11, 2016). 37Judah Aber, Electric Bus Analysis for New York City Transit, Columbia University, May 2016, 16 fig 7, http://\\\\ \V .co I umhi a.cdu/ ·· ja304 I 1-:lcctri c'><120llus'! ;,20 ;\11;.ilvsi s0io20 for"·<120N YC'Yo201 ·ransit%120bv%20J •\·0201\bcr '!.i!l...!l(:~!lmn.l2ii.t'):~12._(lLni~tr~i.ll.'l'!1.2i>..:~:.i•2.!.l_!\.h\.:~%.;._l) 2 l)J.0.,11.\lt. ~ 38 fd 39 See e.g., James Ayre, Massachusetts Puts $1.4 Million into Electric School Bus Pilot Program, Aug. 16, 2016, htlps:l/clcanlcchnica.com!'.~O I ()i()8 1 l fomassachu,ctls-puts-1-4-mi I li(111-dcctric-school-bus-pilot-projccll; Nicole Schlosser, Can Electric School Buses Go the Distance? May 23, 2016, lU!nl·\\\\ w. schuolbusllcct.comlarlicl~/71.H2 I /ggD.-cicl;Jric-scJl<.~ol-buscs-ilo-thc-distancc (providing an overview of state and local pilot projects); Larry Hall, Tech: The Yellow School Bus Is Going All Electric, Clean Fleet Report, Mar. 26, 2016, http:/;\\'''' .clcan lkctrcport.coniilcch-vcl 1011 -sl"i1ool-hu;,-goinl!-clcctric/. 40 Larry Hall, Tech: The Yellow School Bus Is Going All Electric, Clean Fleet Report, Mar. 26, 2016, .hW.1.;L_111111 .clean lh~.clrcpurl.comltcch-1elkm-,chnol-bus-Q<1i JH!. -c' lcct ric/.

5

C. EV Buses Provide Significant Reductions in Tailpipe and Greenhouse Gas Emissions

As shown in the below table, emission reductions vary depending on the model year of the bus being replaced.

T ·1 . E .. f a1 !pipe m1ss1ons rom E"f B XIS IOI!: uses 41

NOx (kg/yr) PM (kg/yr) Carbon Monoxide Hydrocarbons (kg/yr) (kg/yr)

MY 20 I 0 Diesel 527.6 28.0 299.6 47.l MY 2012 Diesel 32.4 .5 26.6 5.0 MY 2012 CNG 107.9 .1 360.4 0 Electric 0 0 0 0

To be sure, NOx reductions can also be achieved by replacing existing diesel buses with new diesel buses or CNG buses. However, the NOx reductions are not as significant. Nor do they provide as meaningful ofreductions in other pollutants such as greenhouse gases ("GHG"), Carbon Monoxide, and black carbon. On a well to wheels basis, a new diesel bus contributes roughly 3,000 grams of C02 equivalent per mile (gC02e/mile), a new CNG vehicle 2,800 gC02e/mile, and a full-electric bus 650 gC02e/mile.42 When choosing which technologies to focus EMT funds on, our state should be mindful of the additional reductions in these other pollutants that adhere only to electric buses.

T 'I . E .. f a11p1pe m1ss1ons rom N T ew 'tB rans1 uses 43

Well-to-Wheel GHGs NOx Black Carbon Carbon Monoxide (gC02e/mile )44 (lbs/yr) (lbs/yr) (lbs/yr)

Diesel 3,000 59 891 59 CNG 2,800 237 178 793 Electric 650 0 0 0

It is also important to consider where these emission reductions will occur. Transit buses tend to operate in heavily populated urban areas and suburban corridors. Pollution from these sources falls directly upon the surrounding communities and commuters. When we consider emissions from electric school buses, it is important to remember that the population most exposed to diesel school bus emissions are children. Children are especially vulnerable to the health effects of air pollution.45 By relying on electric vehicles we can reduce pollution from the same vehicles we trust to bring them safely to and from school.

41 Memorandum from Dana Lowell to Conrad Schneider, Clean Diesel v. CNG Buses: Cost, Air Quality, & Climate Impacts, M.J. Bradley & Associates, Feb. 22, 2012, 9 t. I, available at htJr:L\Y!\Y•,£mJ,J1~1n.:5.\~l.IJ~t,'.~1P.!!hl.i£mi\l[l)//iJ~:~!.2912.()2.27~J)jg'.jt;L ... \!~ ..... (:N~·.JLN!'.\.L .... f\J)ll.1.\..mJJ. 42 See "Urban Bus GHG Emission Comparison," Advanced Clean Transit, California Air Resources Board, May 2 0 15 h!.U:i./fl\\\\\ ,,;1[l:J..,g],.£Q .. ~:rn21m!.lb:h.L.LSi}}_~'[!S.::i!J~lPPI\'.?i.~'.D.l'1ti~.'!UJ.Qf. 43 Proterra, Sustainability, ).J1lps:11.~~ll_J~J:mi:rra.t'l.1.ll/pcrj~lm1_;_lJ.)f.t,;c'iustaim1hjJjlli (last visited Oct. 11, 2016). 44 See "Urban Bus GHG Emission Comparison," Advanced Clean Transit, California Air Resources Board, May 2015 http:/\11111 .arb.ca.l!.O\i111sproQ/hus:\1orbhopprc~_cntation,p~f. 45 Larry Hall, Tech: The Yellow School Bus Is Going All Electric, Clean Fleet Report, Mar. 26, 2016, ht tp:,!111111 .c lc:an llcctrcport ·<::'..<.:>.i.:u·'tcth.:.\.:£!.h1}}-\Ch<H)l-hus-g< li ng-ckctrL£1..

6

Inn

ORLD

mETRD

FROM MATT WANG EXHIBIT "C" 7

CONGRESS RmERICRS 2017

n Dill ment. FROM AMERICA'S URBAN RAIL PATRON'S.

"The Trump administration's decision to withdraw from Paris climate agreement makes it clear we need to double down on our climate leadership. Today I'm joining 99 other mayors and pledging to transition Philadelphia toward 100% clean energy."

- Mayor Jim Kenney June 21st, 2017

A CIVIL DISCOURSE IN CITIZEN ENGAGEMENT

rw,,;;11 .. ,, ,,1 terrapinn

• WELCOME

U.S.A

CANADA

A PATIENT PERSPECTIVE FOR YOUR KIND CONSIDERATION

DEMOCRATIC PLANNING FOR ENERGY AND TRANSPORTATION

.. The engaged public of Philadelphia welcomes you to the "City of Brotherly Love" with open hearts and minds.

We hope you thoroughly enjoy both the World MetroRail Congress and the many other cultural offerings of

this historic place. By now, perhaps, you have recognized that this is not the official program! No need to

worry as we have been working diligently over the last year to curate a summary of some of the most relevant

and thought provoking developments in renewable energy procurement by public transit agencies.

• As you likely know, many transit agencies have made plans for scenarios in which fossil fuels are obsolete

economically, environmentally, and socially. A definitive transition to renewable energy has begun. The

leaders in the transition have shown a humble respect for reality- recognizing that centuries of collective

human action has fundamentally altered the composition of the atmosphere, with enormous repercussions

for the health and well-being of people across the world and for future generations. Indeed, the urgent need

to limit global warming has become the threshold question under which virtually all other decisions regarding

competing visions of human prosperity are reconciled.

• During the next two days you will hopefully find new acquaintances, and engage in important questions about

the future of our transportation systems, our cities, and our planet. Perhaps you will be challenged with

important and critical inquiries by your peers regarding your role in transit. Please know that the riding public

wants to be engaged with the agencies that serve and represent them. More important than any single issue

is the process of a civil democratic discourse that registers and respectfully addresses conflict. Meaningful

dialogue may be uncomfortable, but transit agency leaders will find peace of mind in knowing that so long as

you hold the best interest of the public at heart and in action, we've got your back ...

t The BART board of directors Uust] passed an electrical

portfolio policy that requires half of the organization's power to come from renewables by 2025, and 100 percent by 2045. That has broader implications for the region, because the electric train system consumes roughly 400,000 megawatt-hours annually - equivalent to a small city like Alameda. And, due to a unique legislative carve-out, BART will procure this power itself.1

• The CTra1n in Calgary is one of the greatest examples of electrified transport in Canada. It is overwhelmingly popular with residents, boasting an average weekday ridership of 325,000. It has kick-started smarter, denser development around its stations. And, best of all, it and the City of Calgary's operations are 100 percent powered by renewable energy.2

"Every one or these three-car trains that goes by has a capaMy of 600 people. That means it's taking about 550 cars off the road. It makes a lot of sense." says Calgary Mayor Naheed Nenshi. Photo David Dodge. GreenEnergyFutures.ca

U.S.A

INDIA

AUSTRALIA

NETHERLANDS

CHILE

4 The [California High-Speed Rail] Authority is

committed to powering the high-speed rail system with 100 percent renewable energy sources, maximizing the reduction of greenhouse

gas emissions throughout design and construction, and making energy efficiency a

priority in design. This includes constructing zero net energy buildings and electric vehicle charging

infrastructure at rail stations as well as partnerships with local public transit agencies.3

In November 2008. the voters of California approved Proposition :1A to endorse the California High Speed Rail project and allow the state to issue b-Onds up to $9.9f> b!lhon to help fund the project. The comi)letlon of High Speed Rail into San Francisco 1s a critical project to meet the economic, mobility and environmental sustainability needs of the City and Bay Area.(lmage Credit: Artists rendering/ Callfornla High Speed Rail Authority)

Taking a major leap toward green energy initiatives, Delhi Metro trains will be powered by solar energy by mid 2017. Delhi Metro Rail Corporation chief Mangu Singh said that the Delhi Metro has signed an agreement with a solar power facility which will be used to operate Delhi Metro trains. Solar energy till now had been used for the ancillary purposes such as lighting of the Metro stations."Delhi Metro Rail Corporation has signed a power purchase agreement with a solar facility in Rewa district of Madhya Pradesh. Under the agreement, DMRC will receive 250 MW from the upcoming 750 MW plant,'' he said.4

Melbourne's tram network will become entirely solar-powered under a proposal by the Andrews government to build largescale solar farms in northern Victoria ...

"We will use our purchasing power as a large energy consumer to boost investment in renewables and create jobs for Victorians,"

D'Ambrosia said. "We're positioning Victoria as a leader in climate change, by reducing emissions and adapting to the impacts."5

Using solar power for Melbourne trams is designed to OOost investment in renewables and create new Jobs for Victorians. (Image Credit: Julian Smith/MP)

While it was originally used to pump water or grind grain, wind is now helping Dutch commuters get to work. Earlier this week [Jan 2017], one of their national railway companies, Nederlandse Spoorwegen (NS), announced that, since

1st January, every single one of its electric trains have been running on energy harvested from wind. Their goal was to operate all NS trains on electricity produced by wind turbines by January 2018. "So we in fact reached our goal a year earlier than planned," spokesman Ton Boon told AFP. 2015 was a record year for the country's wind industry - according to the Global Wind Energy Council, turbines capable of generating 586 MW of electricity were installed between January and December. In 2016, Dutch wind hit the headlines again, when a 700 MW offshore wind-farm near the town of Borssele became the most ·cost-effective' in the world. The construction of

these wind farms - along with others in the Netherlands, Belgium, and Finland - helped NS and Eneco to hit their target so far ahead of schedule.6

Though the subway system in Chile's capital, Santiago, has five lines and over 100 stations. it still ranks second to Mexico City's bigger system in Latin America. In the near future, though, Metro de Santiago will have bragging rights of

another sort. soon, 60% of its power needs will be met by renewable energy sources, Chilean

president Michelle Bachelet announced yesterday (May 23, 2016).7

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CHINA

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OURCI'IY!

A new report and recommendation recently released by King County Executive Dow Constantine shows how Metro

Transit could completely transition the bus fleet to zero-emission powered by renewable energ}'between 2034 and 2040. The move would reduce greenhouse gas emissions and improve local air quality and public health - key goals outlined in King County's strategic plans on climate and social justice. Battery-electric buses cost incrementally more than hybrid diesel-electric buses, but have reduced long-term maintenance costs as well as health and environmental benefits.8

* The Antelope Valley Transit Authority (AVTA) is bringing a fresh new energy to public transportation in the Antelope Valley! The transit agency has set a major goal to convert all of its aging diesel buses to a 100% battery electric bus fleet, by purchasing up to 85 new all-electric buses over the next three years. The Board of Directors for the Antelope Valley Transit Authority (AVTA) voted unanimously toset a goal of becoming the nation's first fullyelectric fleet by the end of fiscal year 2018.9

' Carbon monoxide, nitrogen dioxide, particulate matter and volatile organic compounds can all have a negative impact on your health.1 But because all of our buses here at Foothill Transit will be 100% electric by 2030, they'll be reducing the amount of pollutants in the air, rather than releasing them.10

* The Mayor [of London] announced that routes 507 and 521 will exclusively run a 51-strong fleet of all-electric buses by the end of the year, as part of his ambitious campaign for a dramatic improvement of air quality in the capital.11

* To further speed up the application of new energy vehicles, Shenzhen municipal government is planning to introduced more electric buses. By the end of 2017, the city will see all its buses powered by electricity. In addition, by the end of 2020, the city is aiming to increase the number of its new energy vehicles to 120,000 units. To achieve such grand goals, the company will build 13 new bus terminals, 8,246 fast-recharging posts for city buses, 10,800 fastrecharging posts for public use and 115,000 slow-recharging posts.12

The Pune metro rail, which is being developed by Maha Metro, aims to draw 65 per cent of its energy needs from solar panels which will be installed on the metro ... "Adopting and integrating solar energy generation from project planning and design stage is our motto. In the phase one, we will generate 17-megawatt energy through solar." 13

Provincial minister of transportation Steven Del Duca (left) and MPP Laura Albanese (York South-Weston) take questions from the media Tuesday, March 28 at the Eglinton.Crosstown l.RT western terminus construction site, following an announcement regarding the line's battery energy storage svstem. (Image credit: Statt/Me\rolandl

Mount Dennis residents are rejoicing, after learning that Metrolinx and the provincial government have canceled plans for a gas-powered backup facility in their neighborhood. The gas plant was supposed to provide backup power to the Eglinton Crosstown LRT, which is currently under construction. At a news conference Tuesday morning, Ontario Transportation Minister Steven Del Duca said the province was partnering with Toronto Hydro to build a more "environmentally sustainable" battery-powered energy storage system instead.14

... sunshine inside SEPTA's board room Thursday [May 25, 2017) as the agency approved a contract to install photo-voltaic solar panels on the roofs of four bus and rail maintenance shops. SEPTA picked SunVest, Inc., to install and operate the panels under a 20-year lease agreement. SEPTA will pay nothing up front for the panels. In exchange, SEPTA will buy electricity from SunVest, starting a 7.2 cents per kilowatt hour and increasing annually 1.9 percent. That will actually save SEPTA a little bit of money on its PECO bill, said Erik Johanson, SEPTA's director of innovation.15

For the past 15 months, 350 Philadelphia and allies have opposed our transit agency's plan to build a natural gas power plant that would generate electricity for our Regional Rail system. We have asked SEPTA to:

carry out a full health impact study

conduct an alternatives analysis that examines a full range of options for competing energy futures

partner with riders. community members. and environmental organizations to plan SEPTA'S energy future

Some reports from the press and from 350 Philadelphia's blog: " ... agency's planners acknowledge they were caught off guard by the opposition. "I didn't see it coming." said David T. Montvydas, SEPTA'S chief engineer for engineering, maintenance, and construction ...• As a public agency. SEPTA's decision-makers are more exposed to outside pressure than private power developers. ButSEPTA's challenges are likely to become standard fare for future power projects as climate-change activists step up ... "16

[November 9th. 2017] delegates from 350 Philadelphia met with 12 people from SEPTA and NORESCO to discuss the lack of PLiblic engagement around the gas power project at Midvale Bus Depot. We expressed our frustration, that our concerns have been ignored for the previous 6 months. We referred to community efforts in Toronto with Metrolinx and in North Carolina with Duke University in rejecting fracked gas for electricity generation. We shared that our demonstrated respect has not been reciprocated, that there's been a lack of transparency.17

Members of the group planned a filibuster of sorts before SEPTA's board voted on the proposal: dozens signed up to speak during the public comment sessions held first. Usually SEPTA asks the public to hold comments to three minutes; today, the limit was set at two .... SEPTA contends that the plant will reduce greenhouse gas emissions 41 percent by replacing the electricity purchased from PECO's grid.* The gathered activists argued those figures ignore the emissions released during natural gas extraction(, processing, and distribution).18

Opposition to SEPTA'S new fossil fuel infrastructure packed the board room in November 2016. Police guarded closed entrance doors where an overflow of community members pattenU:t waited outside and were permitted to enter only as others e,<ited. (photo credit 350 Philadelphia)

A letter in opposition to the gas power plant was co-signed by 57 organizations including: local community groups, neighborhood schools, faith groups, health and environmental organizations.

About 1,500 signatures were delivered in petition to the SEPTA board in October 2016.

The SEPTA board, in November 2016, voted unanimously in favor of the gas plant despite cries from the opposition that proper notice to the most directly affected neighborhoods was not provided.

In response to SEPTA Board's failure to provide adequate public notice before approving a contract to build a fracked-gas power plant in Nicetown-Tioga. 350 Philadelphia and three Nicetown-Tioga residents have filed a lawsuit against the transit agency. The complaint, which was served upon SEPTA on January 13, 2017 invokes the Pennsylvania Sunshine Act, which requires that government agencies give public notice before they take a vote, as well as Pennsylvania's Guaranteed Energy Savings Act (GESA). which states that these agencies must also give at least ten days notice before voting on a contract.19

In March 2017 the SEPTA board responded to the Sunshine lawsuit by providing minimum legal notice, the board voted unanimously a second time to build the gas plant - despite stronger opposition from communities.

Many elected officials have publicly asl~ed SEPTA to delay or cancel the project: Councilwoman Cindy Bass, Councilwoman Blondell-Reynolds Brown, Councilwoman Helen Gym, Councilman Kenyatta Johnson, State Rep. Chris Rabb, State Rep. Rosita Youngblood.

More than 2,500 people have spoken out against the plant by attending board meetings, contacting SEPTA officials and elected representatives through postcards, letters, emails, phone calls , and social media.

Public hearing for SEPTA'S gas plant air permit is scheduled for tonight: June 27, 2017 at 6:00 PM, Panati Playground 3100 North 22nd Street Philadelphia, PA 19132

• In the last 10 years many business leaders and politicians have been touting natural gas as a clean-burning, alternative energy source that can effectively bridge the gap between dirtier fossil fuels like coal and oil. and clean, renewable energy sources like wind and solar. This is false. The truth is that burning natural gas releases more than half the carbon dioxide of coal, which is among the dirtiest of fuels. Carbon dioxide is of utmost concern to scientists because it is one of the main causes of climate change. Where natural gas starts to outstrip coal is in methane emissions. Methane, which, until recently, was rarely accounted for when estimating climate change risks. is starting to gain attention due to America's increased dependence on natural gas. Methane leakage is common during natural gas extraction (processing and distribution). and each molecule produces 86 times more warming than a molecule of carbon dioxide over a period of 20 years. This spells bad news for Philadelphia. which is the tenth most vulnerable city in America to the effects of climate change.

• The concerns over natural gas are not just related to the devastating impacts of climate change, many of which will take decades to fully realize. A natural gas power plant in Nicetown means a local increase in nitrogen oxides (NOxJ, volatile organic compounds (VOCs), particulate and ultrarine particulate matter, all of which have immediate, detrimental effects on human health.

• If the plant in Nicetown is built, ultrafine particulates will likely be the most pressing concern for residents since this type of pollution is not yet fully understood and may pose a "surprise" risk. Ultrafine particulates are not yet regulated by the U.S. Environmental Protection Agency and many studies have linked them to numerous health problems. SEPTA has consistently refused to do a study on this particular pollutant.

• The other three pollutants are better understood and highly toxic. NOx contributes to the formation of groundlevel ozone, also known as smog. Ozone is linked to an array of respiratory illness. including the development of childhood asthma. On top of NOx. voes at higher concentrations can also damage lungs, in addition to the liver, kidneys, and central nervous system. The World Health Organization says there is no safe level of exposure to particulate. Particulates have been found to exacerbate and contribute to both asthma and heart disease, as well as dementia, impaired cognitive development in children, premature births. and other problems.

• Roughly 37,000 people live within a mile of the proposed power plant site in Nicetown.20

- REFERENCES

1 https://www.greentectimedia.com;articles/readjbay-area-rapid-transit-wilH'un-on·10<Henewable-energy 2 http://www.pembina.org/bloglcalgarys-wind.powered-lrt.,-,in-incredibly-$UCCe$$1'ul-system-net1Shi 3 http://news.thereglstrysf.cornjhigh-Speed-rail-authortty..energy-rommtssiOn-tearn-make-<:atifornia-greener/ 4 http:JjWWW.asianage.cornjmetll:JlVdelhV001216/metro4:o-run-on-sotar13ower-by.2017-dmr0-0hief.htm! 5 https://www.theguardian.¢0m/australla-neWS/2017 /.iSn/19/melboume-trams-to-bHOlar-poW¢ted-under>00drewsgovernment-proposal 6 httPs:/ /www.forbes.COmj$itesjlauriewink1~2017 /0:1/12/dutcMrains-ar&00w-powered4:1y-wind/#1870e25e2d29 7 https:j /qz.oom/691078/santlagos-subway.systemwill-ooon-bei:>owered~Jar.:ano:wind«iergy/ s http:/ /www.masstranslt1nag.COmjpressJelease/12313686/new-report-chart&coul'Se{o-zer&emi$$ion-<:arbOfl..neutral-i<ing. county-metro-bus.f'leet ·. 9 http://www.avta.com/lndex.aspx?page .. 482 10 http:/ /foothilltransit.orglnews,lsustainability/electrio-program/ n https:/ /tfl.gov.ukjinfo-for/media/press-releasesj2016/september/mayor-unveils.ftrsHully-electric-bus-routes-for-central-lond 12 http://www.chinabuses.org!news/2016/0725/artlcleJJ559.html 13 http:/ /www.hindustantimes.com/pune-riews,lpune-rnetro-to-generate-17mw-¢f-solar-power/story Um9rWWwxFd91Zmfn3M856K.html 14 http:/ ;www.cbc.cajneWSjcanada,ttoronto;this-iH<lream-residents-weloome-inetrolinx-decision-to-cancel-gas-i:>lant·in-mountdennis-1.4044841 15 http://planphilly.com/artic!es/2017 /05/26/septa-eewthe-ilght~ar..panels..an-rnalntenance-facility-rooftops 16 http;/ /www.philly.com/philly/busines.s/energy/20160620_SEPTA_power-plant_plan_ptovokes_climate_actMsts.html 17 httPs://350philadelphla.wordpress.com;2016/1:1/10/face-to-face-wifh..septaj ;is http:/ /planphilly.com/articles/2016/1:1/18/environmentalis~pta-Ooard-oks-natural-gas-power-plant-in-nicetown 19hltP$://350philadelphia.wordpress.com/septa/ m http://hiddencityphila.org.'2017 /01/septas-ptan-for-natural..gas-plant-puts-nicetown-resident&in·harms-way/ 21 http:/ /pecpa.org.'ptogrm/deep-decarbonizatlon/

Mombel'!l ol 350 Ph~•dfilJ>hla gather In !he lebby of SEPTA Headquarters ;ust prl(lr to a Pullli<l board meeting in tlle spring Uf 2016. Although the sequence of events in the lolowlng year led to public distrust of SEPTA, the Phll$delphla i:ommunlty Is rJ!lnvigorated by our May0ts commitment to 100% clean ener~.

{p!Wto crea1t: 350 Philadelphia)

350 Philadelphia is a volunteer organization that operates through a broad network of community coalitions to leverage Philadelphia's people power and dismantle the influence of the fossil fuel industry. Our work is to develop people-centric solutions to the climate crisis that respond to the urgent need for a shift to renewable energy and a "just transition" for those most affected by climate change impacts.

Encouragement of civil democratic discourse and recognition of conflict are key elements to engaging citizens with their elected officials, public agencies, and private entities. The ideological divide of competing future visions must be bridged in intentional and creative ways to achieve 100% clean energy.

All people have a role to play in respondlngtoclimatechange. If you are interested in lea ming more about our organization please email us at [email protected].

While there are many ways to reduce carbon emissions, the challenge is determining which strategies, or combination of actions, will be effective in obtaining sufficient emission reductions. Complicating this is the fact that infrastructure investments being made today can lock in energy choices for decades to come, without achieving significant GHG reductions.

Put another way, incremental decisions made in the next decade may either facilitate virtual elimination of carbon, or push us into dead ends"that make that outcome impossible or unfordable. Emerging thinking is focusing on the idea of deep decarbonization - a pathway to the end goal of eliminating carbon emissions altogether.21

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MINUTES OF REGULAR BOARD MEETING OF SOUTHEASTERN ...

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