AC Transit Annual Report 1983-1984

8/14/2019 AC Transit Annual Report 1983-1984

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ALAMEDA-CONTRA COSTAJRANSIT.DISJPJCT1984 AN;NUAL :REPORT


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CONTENTSMANAGEMENT REPORT

COMBINED FINANCIAL STATEMENTS:

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Auditors' Opinion 6Combined Galance Sheets ,June 30 , 1984 and 1983 7Combined Statements of Revenues and Expenses forthe Years Ended June 30 , 1984 and 1983 8Combined Statements of Changes in Capitol for theYears Ended June 30, 1984 and 1983 9Combined Statements of Changes in FinancialPosition for the Years Ended June 30, 1984 and 1983 10Notes to Combined Financial StatementsSCHEDULE OF REVENUES AND EXPENSESBY SPECIAL TRANSIT SERVICE DISTRICTAND CONTRACT SERVICE AREA:

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Auditors' Opinion 13Schedule of Revenues and Expenses by SpecialTransit Service District and Contract Service Areafor the Year Ended June 30, 1984 14Notes to Schedule of Revenues and Expensesby Special Transit Service District andContract Service Area 15


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n Fiscal Year 1984, AC Transitachieved major advances inthree important areas: reorganizing and redefining thefunction of various Districtdepartments; improving thefacilities that suppart on-street

bus operations; and laying theg r o u n d w o r l ~ for major restructuringof bus service operated throughout the East 8ayThough hardly visible to riders, this modernizingand streamlining of AC Transit'sorganization will greatly enhancethe District's ability to deliver dependable service in the yearsto come.

FACILITIESAND TECHNOLOGYA major step forward wasrelocation of the Purchases and

Stores Department from overcrowded, inefficient quarters inEmeryville to a spacious new Central Maintenance Center in EastO a l ~ l a n d . (As development of theCentral Maintenance Center continues in the coming fiscal period, all

major fleet u p l ~ e e p activities willbe moved there, leaving the operating divisions free to concentrateon basic servicing and preventivemaintenance).

The move of Purchases andStores coincided with adoption ofautomated procurement andinventory control systems-the initial element of a new District-widedata system, titled Maintenanceand Materials Management Information System (MMMIS),whichwill be expanded to achieve complete automation of all fleet maintenance r e c o r d - I ~ e e p i n g .

MMMISadds

Service extends throughout38 communities and 750 squaremiles.

established expertise in innovativebus-repair,enabling AC Transit tomaintain a detailed record of partsrequired and a maintenance his-tory of every bus (and of major buscomponents). These comprehensive records will reveal actual fleetmaintenance costs and life-cyclecosts of the buses and their mechanical elements.

Automation also displacedslower methods of service planning and design during this period - particularly the process bywhich bus service is scheduled andthen 'cut' efficiently into units ofw o r l ~ to be performed by individual drivers. A sophisticated newRUCUS (Run-Cutting and Scheduling) system came on-line. This provides capabi lity to compute costper-driver-per-hour of a run (or projected run, if the scheduler is testinga concept) and to extrapolate,from that information, annualizedcosts of service-by type of run, bydivision,ar even system-wide. Inapplying this new tool, the scheduler's goal is to maximize servicewhile minimizing operating costs .

R . .fBfM


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In addition to the new $21million Central Maintenance Center,other facility improvement projects being refined on architecturaldrawing boards included: majorrevamping of existing operatingdivisions in Emeryville, East O a l ~ -land and Richmond, plus creationof a new operating division inHayward-also to be the site of theTraining and Education Center. Thisambitious $100 million rehabilitation program is scheduled to becompleted by Fiscal Year 1986 or87,giving the District modern facilities to support bus operations inyears to come.

STAFFINGIn the area of internal organization , personnel analysts spent

much of the year developingclassification specifications for anumber of new positions, includinga Central Maintenance Superintendent, Production and QualityControl supervisors for the newcentral facility, and a Training and administrative s l ~ i l l s within the Dis-Education Center Manager.Such trict,assuring maximum utilizo-new obs reflect a growingneed lor Q broader ~ - " ~ , . " v ~ ~ ~ ~ i ~ ~ 1 r . " { ~ ~ ~ ~ ~ , , nd [ ') \ ) fj'\. I" ",",.) U_ - - - ~ . ' - - : . l . J b. -" --


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ship with new General ManagerL.A. "Kim" Kimball succeedingP.obert E. Nisbet (chief executive officer since 1978, who had retired).Kimball arrived as no strangerto the East 13ay, having held tw oearlier positions here (as a 13AP.Tassistant general manager, administration, and as Walnut Creel-


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4.

New technology gives improveddata processing of information.

SERVICE NOTESService additions this year

included a new express bus routelinl"ing Richmond with the Contra Costa County seat in Martinez(outside AC Transit's service area),offered as a one-year demonstration project supported by Statefund ing.

Additionally an interdepartmental team tool" on the tasl" of monitoring service-and of generatingthe necessary steps to ensure thatbuses operate as scheduled. Thisnew Service Analysis and Monitoring (SAM) team began with athorough examination of bus routesin the MacArthur Blvd .corridor.The result: a new schedule and additional peal,,-hour buses to betterensure on-time operation.As thefiscal period continued, the SAM tasl"team began examining majortrunl" lines in other heavi ly-traveledEast Bay corridors. This establisheda process of intensive interdisciplinary service evaluat ion which isexpected to continue.Also this year, the District'sriders were introduced to a newtwo-way communications device- a periodic 'Passenger Lines' publication with news andnotes about

AC Transit activities, an d a preaddressed return card with whichpatrons can express specific re-quests,comments and complaints.The items on passengers' minds,asevidenced by returned cards, included an array of suggestions(always valuable input for serviceplanners), requests, complaints andcommendations . Processing ofthese cards by the Customer Rela-

tions office includes mailing specified materials, along with individual replies,as requested .FINANCE

The ongoing search for sufficient funds to support bus serviceproved a challenge again this year.The District continued to implement stringent internal economies,minimizing expenditures in allareas not directly related to operation of on-street service. Throughattrition, fewer worl"ers remained onthe payroll ,and certain administrative/finance/personnel employees were shifted into Operationspositions. As a bonus, the automation of fare collection systemsand computerization of claimsprocessing, personnel tracl"ing,and bus scheduling also yieldedgreater productivity without addedlabor costs.


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FLEET UPDATEFleet modernizat ion contin

ued during the year with award ofa contract for 134 new coachesto Gillig Corporation, located innearby Hayward.The close proximity of the manufacturer hadproved a boon in an earlier contract through reduction of delivery charges and improved responsetime in case of modificationsand improvements requested bythe District. Similar advantagescan be expected as a result of negotiation and execution of thisyear 's contract.

The District experienced amodest increase in one-way routemiles (from 2,145 to 2,169 miles)and in maximum morning commute hour equipment requirements (from 693 buses in FY 1983to 701) in this fiscal period. However, total weel'\day scheduled milesdecreased slightly from 106,678to 106,625 miles.SAFE DRIVERS

The District's fleet registerednearly 32 million miles in revenueservice this year; and in the proc-

ess,the bus drivers earned a total of914 "Safe Driving" awards foraccident free service.At the top of the list was veteran John D. Zorman ,who is thefirst AC Transit bus driver to achievea 33-Year Safe Driving Award.Also,Stephen Stathis became the 9thdriver to reach the 30-Year markDuring the fiscal period, a total of 13

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AC Transit operators who haveachieved more than 25 yearssafe'driving.

drivers were honored for accomplishing 25 years or more accidentfree miles at the wheel of ACTransit buses; the total roster ofoperators to reach the quartercentury plateau numbered 52 atyear's end.RISK AND INSURANCE


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DELOITTE HASKINS f.-r SELLS44 Montgomery StreetSan Francisco, California 94104(415) 393-4300

A D A M S ~ G R A N T ~ WHITE & CO.508 - 16th Street, Suite 824Oakland, California 94612(415) 832-0257

------------ICERTIFIED PUBLIC ACCOUNTANTS

AUDITORS' OPINION

The Board of Direc tors ,Alameda-Contra Costa Transi t Dis t r i c t :We have examined the combined balance sheets of AlamedaContra Costa Transi t Dis t r i c t as of June 30, 1984 and 1983and the re la ted combined sta tements of revenues and expenses,changes in capi t a l and changes in f inancia l posi t ion for theyears then ended. Our examinations were made in accordancewith general ly accepted audi t ing standards and, accordingly,included such t es t s of the accounting records and such otheraudi t ing procedures as we considered necessary in thecircumstances.In our opinion, such f inancia l sta tements present fa i r ly thecombined f inancia l posi t ion of Alameda-Contra Costa Transi tDis t r ic t a t June 30, 1984 and 1983 and the combined resu l t sof i t s operations and the changes in i t s f inancia l posi t ionfor the years then ended, in conformity with general lyaccepted accounting pr inc iples applied on a consis tent bas is .

September 21, 1984


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JUNE 30,1984 AND 1983 (In Thousands)

ASSETS NOTES 1984 1983CURRENT ASSID:

Cash and investments $ 37.791 $ 27,404Accounts receivable and accrued revenues: 3,4Federal grants 8.177 10,111Other,principally state and local assistance 2.638 4,456Materials and supplies,at cost 2.726 1,524Prepaid expenses 608 719Total current assets 51.940 44 ,214

CASH AND INVESTMENTS APPROPRIATEDFOR ACCRUED PENSION COSTS 2,7 62.611 54,894PROPERTY. PLANT AND EQUIPMENT: 2Land 11.158 11 ,308[3uildings,structures and improvements 2.448 2,448

Revenue equipment 93.469 94,842Shop, office and other equipmentand service vehicles 5.873 5,639Acquisitions in progress 31.801 10,694

Total property, plant and equipment 144.749 124,931Accumulated depreciation (35.221) (30,787)Property, plant and equipment-net 109.528 94 ,144

Total $224.079 $193,252LIABILITIES AND CAPITALCURRENT LIABILITIES:

Accounts payable $ 1.936 $ 4,127Salories,wages and vacations 5.312 5,809Other accrued liabilities 5 3.305 2,976Advances under grants 2 11.928 4,904Self-insurance reserves: 2W o r l ~ e r s compensation 2.219 2,479Public liabili ty and property damage 2.632 2,264

Total current liabilities 27.332 22,559ACCRUED PENSION COSTS 2,7 62.611 54,894CAPITAL: 2,6,8District equity 36.314 34,115Contributed capital:Federal grants 71.633 59,887State toll bridge funds 17.409 13,881Local transportation funds 8.780 7,916

Total capital 134.136 115,799Total $224.079 $193,252

See notes to combined financial statements.

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NOTES

REVENUES:FaresProperty taxesContract serviceOther operating revenuesOperating assistance: 4Local sales tax (AI) 1107)Local transportation fundsFederal

State Transit Assistance FundInterest earned on appropriated District fundsand w o r l ~ i n g capitol, ess amounts allocatedto accrued pension costs 2,6,7Total

EXPENSES:Operators' wagesOther wagesFringe benefitsFuel and oilOther materials and suppliesServicesInsuranceLeases and rentalsOther

TotalEXCESS OF REVENUES DEFORE DEPRECIATION 2,6,7DEPRECIATIONEXCESS OF EXPENSES OVER REVENUESSee notes to combined financial statements.

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1984

531,77311,8355,88397016,40015,8847,8635,7603,068

99,436

33,52617,54524,2386,2505,9463,6082,0864842,772

96,4552,9816,579

5 (3,598)

198J

$32,31313,4406,113

50215,73118,3136,2322,109

3,21997,972

33,33917,47124 ,6956,6936,0253,3592,2045452,672

97 ,003969

5,397$ (4,428)


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NOTESBAlANCE. JUNE 30. 1982Excess of expenses overrevenuesDepreciation expense trans-ferred from District equityCapital grant funds earned 3Revenue equipmenttransferred to CCCTABAlANCE. JUNE 30. 1983Excess of expenses overrevenuesDepreciation expense trans-ferred from District equityCapital grant funds earned 3Land transferred to CCCTA 1BAlANCE. JUNE 30. 1984See notes to combined financial statements.

DISTRICTEQUITY$33,304

(4,428)5,239

34,115(3,598)5,797

$36,314

. . . . .CONTRIBUTED CAPITAL . . . . .STATE TOLL LOCAL TRANS-FEDERAL BRIDGE PORTATION

GRANTS FUNDS FUNDS TOTAL$29,883 $10,840 $1,398 $ 75,425

(4,428)(3,933) (841) (465)35,313 4,176 7,034 46 ,523(1,376) (294) (51 ) (1,721)59,887 13,881 7,916 115,799

(3,598)(4,407) (808) (582)16,153 4,336 1,597 22,086(151 ) (151 )

$71,633 $17,409 $8,780 $134,136


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FOR JI::IE YEARS ENDED JUt-lE.30.A984AND 1.98Q (In T h o u ~ n d s )

1984 198JSOURCES OF WORKING CAPITAL:Operations: $ (3,598)xcess of expenses over revenues $ (4,428)Expenses not requiring w o r l ~ i n g capital-depreciation 6,579 5,397

W o r l ~ i n g capitol provided by operations 2,981 969Increase in accrued pension costs 7,717 9,056Capitol grant funds earned 22,086 46 ,523Transfer of land and revenue equipment to CCCTA 151 1.721Total 32,935 58.269

APPLICATION OF WORKING CAPITAL:Increase in cosh and investments appropriatedfar accrued pension costs 7,717 9,056Acquisition of property, plant and equipment 22,114 47 ,370Transfer of land and revenue equipment to CCCTA 151 1,721Total 29,982 58,147

INCREASE IN WORKING CAPITAL $ 2,953 $ 122INCREASE (DECREASE) IN COMPONENTSOF WORKING CAPITAL:Current assets :Cosh and investments $10,388 $( 12,961)Accounts receivable and accrued revenues (3,752) 9,909Materials and supplies 1,201 119Prepaid expenses (111) 235

Total 7,726 (2,698)Current liabilities:Accounts payable and accrued liabilities (2,360) 2,043Advances under grants 7,025 (5,640)Self-insurance reserves 108 777Total 4,773 (2,820)

INCREASE IN WORKING CAPITAL $ 2,953 $ 122See notes to combined financial statements.

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1. Organization and Oasis of PresentationAlameda-Contra Costa Transit District (the District) is a political subdivision of the State of California established in 1956and subject to transit district low as codified in the CaliforniaPublic Utilities Code.The accompanying financial statements include the combined financial position, results of operations,and changesin financial position of the District's Special Transit Service Dis-tricts No.1 and No.2 and other areas in which the District hascontracted to provide transit service.The District has contracted to provide transit service for theBoy Area Rapid Transit District (BART) and several cities andother areas in Contra Costa County The allocated cost of pro-. viding such service, less related operat ing revenue, is fundedfrom local transportation funds, Federal operat ing assistanceand, for BART express service, by direct reimbursement whichis recorded as contract service revenue.The District has entered into on agreementwith the CentralContra Costa Transit Authority (CCCTA) whereby transit services in Central Contra Costa County which were previouslyprovided by the District were assumed by CCCTA during fiscal1982.As a part of this agreement, the District transferred toCCCTA certain revenue equipment having a b o o l ~ value ofapproximately $1,721,000 during 1983 and land havinga b o o l ~ value of $151 ,00 0 during 1984.2. Summary of Significant Accounting PoliciesInvestments are stated at amortized cost which approximates m a r l ~ e t value.Property; plant and equipment is stated at cost and depreciated using the straight-line method over the fol lowing estimated useful lives:Buildings, structures and improvementsRevenue equipmentShop, office and other equipment and

10 to 35 years15 yearsservice vehicles 5 to 20 yearsSelf-insurance reserves-The District is self-insured for public liability and property damage up to $ 7 5,000 and w o r l ~ e r s ' compensation claims up to $100,000 for each occurrence.Claims in excess of these amounts are insured with commercial carriers.The District provides, in each period , reservesto cover the estimated costs of the self-insured portion ofthese claims.Pensions-The District has two noncontributory pensionplans,one covering all union employees and another providing similar benefits far nonunion employees. Provisions

for pension accruals are based on percentages of gross payroll which provide for the normal cost of the plans plus amortization of priar service cost over a period of not more thanforty years.Cosh and investments equal to such provisionsare appropriated annually by the Board of Directors to provide for payment of benefits.Contributed capital-The District per iodically receives Fed-eral grants from the Urban Moss Transportation Administra-

tion (UMTA) of the U.S. Deportment of Transportation, localtransportation funds and state toll bridge revenues (see Note3) for the acquisition of buses an d other equipment andimprovements.Capitol grant funds earned, less depreciationof the related assets ,are included in contributed capitol.Advances received on capitol grants are recorded as liabilities until the funds are expended for capitol acquisitions.3. Capitol GrantsThe District has twenty grant contracts in process with UMTAwhich provide Federal funds for the acquisition of buses an dother equipment and improvements. These grants are summarized at June 30, 1984 as follows (in thousands):Total approved costsTotal Federal grantsLess :Amounts received

Amounts receivable-netRemaining amount available under Federalgrants

$159,414$126,134

(89,526(301

$3 6,307The District is commit ted to purchase additiona l equipmenat a cost of approximately $39,497,000 in connection withthese projects.At June 30, 1984 property; plant and equipmentwith acost of $114,044,000 hod been purchased under Federal

grant contracts. Under the terms of the grants, proceeds fromequipment sold during its useful life in proport ion to the re-lated Federal capitol grant funds are refundable to the Federagovernmentunless reinvested in l i I ~ e equipment.The District has also received allocations of funds generatedfrom net toll br idge revenues of the Son Francisco Boy BridgesThese funds are received under provisions of the CaliforniaStreets and Highways Code and are allocated based onclaims approved by the Metropolitan Transportation Commission (MTC).Local transportation funds received for copital grant projectsinclude allocations received pursuant to the TransportationDevelopment Act of 1971, certain property tax revenues,andcertain local sales tax funds.4. OperatingAssistonceFederal operating assistance funds are received pursuantto Sections 5 and 9 of the Urban Moss Transportation Act of1974. Such funds are apportioned to the local urbanized areaand are allocoted to individual transit operators by MTC afterapproval by UMTA. Allocations granted during 1984 are subject to final audit and approval by MTC and UMTA.The District also received al locations of local transportationfunds pursuant to the Transportation Development Act of 1971certain local sales tax funds,and allocations from the StateTransit Assistance Fund. These funds are allocated based onannual claims filed by the District and approved by MTC.

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5. Note PayableOther accrued liabilities at June 30,1984 include a 10.75%note payable for $725,000 which matures in Morch 1985.The note is secured by certain revenue equipment with a costof approximately $14,288,000.6. Appropriated District FundsThe Boord of Directors has authorized the appropriation ofportions of available funds for the replacement of facilities andequipment and other expenditures, as follows (in thousands):

1984 1983Amounts available far appropriation:

Cosh and investments $37,791 $27,404Accounts receivable and accruedrevenues 10,815 14,567Total 48 ,606 41 ,971Less current liabilities 27,332 22 ,559

Net $21 ,274 $19,412!3alance. Additions- !3alance,June 30 , Interest June 30 ,

1983 Earned f\eductions 1984Amounts appropriated:f\estricted Fund $ 7,778 $1 ,213 $1 ,206 $ 7.785Facilities andEquipmentf\eplacement Fund 1,075 182 1,257

ImprovementAllowance Fund 983 166 1,149UnemploymentCompensation Fund 663 663!3uilding Fund 5,534 936 6,470

W o r l ~ i n g capitol 3,379 571 3,950--Total $19,412 $3,068 $1.206 $21 ,274The appropriated funds are to be used for the followingpurposes:Restricted Fund - to provide for unusual or otherwisenecessary expenditures for repair, improvements to or re-placement of essential e lements of the District's facilitiesor for operating requirements.Facilities and Equipment Replacement Fund-for the pur-pose of meeting the District's contractual and related respon-sibilities as a recipient of Federal. state and local capital grants.

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Improvement Allowance Fund-to fund certain nonrecur-ring operating expenses or costs of preliminary engineeringenvironmental impact studies, preporation of capital grantapplications, professional and technical service agreementsand the procurement of equipment and material related tocapital improvements which initially may not be reimburs-able by Federal grants.Unemployment Compensation Fund-to provide forpotential unemployment liabilities which may result inthe event of curtailment of services to or deannexationof District No. 2.Building Fund-to assist in meeting the District's potentialfinancial requirements associated with the purchase,con-struction or rehabilitation of a building to provide adequatepermanent accommodationsfor the District's general officeconsistent with the master Facilities Improvement Program.7. PensionsThe provision for pension accrual for the year endedJune 30, 1984 was $5,009,000 (1983, $6,482,000) plus anallocation of $5 ,943,000 of interest eorned on District investments (1983, $5,418,000). Benefit payments for the yearwere $3 ,235,000 (1983, $2,844,000).A summary of accumulated plan benefits and cash andinvestments appropriated for accrued pension costs as ofJanuary 1,1983, the date of the most recent actuarial valuation, follows (in thousands):Actuarial present value of accumulated plant benefits:VestedNonvested

TotalCosh and investments appropriated for accrued pension costs

$54,635.55$60,19$51,49

Actuarial assumptions assume an 8% rate of return oninvestments and retirement age of 65.8. UtigationThe District is involved in various claims and litigationarising in the ordinary course of its operations.None of theseis expected to have a significant effect on its operations orfinancial condition.


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DELOIITE HASKINS Sf SELLS44 Montgomery StreetSan Francisco , California 94104(415) 393-4300

ADMIS, GRANT, WHITE & CO.508 - 16th Street, Suite 824Oakland, California 94612

(415) 832-0257

----------CERTIFIED PUBLIC ACCOUNTANTS

AUDITORS' OPINIONThe Board of DirectorsAlameda-Contra Costa Trans i t Dis t r i c t :We have examined the accompanying schedule of revenues andexpenses by specia l t r ans i t service d i s t r i c t and cont rac tserv ice area of Alameda-Contra Costa Transi t Dis t r i c tfor the year ended June 30, 1984. Our examination wasmade in a c c o d a n c e wi th general ly accepted audi t ing s tan-dards and, accordingly, included such t es t s of the accounting records and such other audi t ing procedures as weconsidered necessary in the circumstances.As described i n Note 1, the accompanying schedule was prepared in accordance with the terms of a cont rac t datedOctober 9, 1974 between the Dis t r ic t and the Bay AreaRapid Transi t Dis t r ic t (BART) as amended by the ContractService Pricing Method descr ibed in the Performance AuditReport of the Dis t r i c t dated June 30, 1980 and a l e t t e ragreement dated July 14, 1983 between the Dis t r ic t andBART ( the Contract ) . The accompanying schedule excludescer ta in in te res t income tha t is not considered in the determination of cont rac t revenue and expense.In our opinion, the schedule of revenues and expenses re-ferred to above presents fa i r ly the revenues and expensesby specia l t r ans i t service d i s t r i c t and cont rac t servicearea of Alameda-Contra Costa Transi t Dis t r i c t for theyear ended June 30, 1984, in accordance with the terms ofthe Contract consis tent ly appl ied .

September 21 , 1984

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REVENUES:Fares[3ART transfersProperty taxesContract serviceOperating assistance:Loco Isa les tax (TDA)Local sales tax (A[31107)State Transit Assistance FundFederal section 5 and 9 grantsOther operating revenue:AdvertisingCharterOther transit faresOtherInterest earned on unrestricted fundsTotal

EXPENSES:OperatorwagesOther wagesFringe benefitsFuel and oilOther materials and suppliesServicesInsuranceLeases and rentalsOtherTotal

EXCESS OF REVENUES (EXPENSES)DEFORE DEPRECIATION

DEPRECIATIONEXCESS OF EXPENSES OVER REVENUES

STATISTICAL DATA:HoursMilesFarebox recovery ratioOperating revenue ratio

SPECIAL TRANSIT. . . . . . . . SErWICE DISmICT . . . . . . .DISmlCT NO.1 DISmlCT NO.2$29,59199510,141

13,07915,4055,6725,961343393447446982 ,20328,48514,57520,4365,1784,9313,0021,7284012,35581 ,091

1,1125,451

$ (4,339)1,81325,57337.75%39 .40%

$ 907981,694

2,268881,12532

1026,3142,3401,2911,72446043826615336234

6,942(628)484

$ (1 ,112)1542,36614 .48%16 .41%

See notes to schedule of revenues and expenses by special transit service District and contract service area.

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. . . . . . . . . CONmACT SEfWICE A ~ E A . . . . . . . . . . .EASTERN CONTM WESTERN CONTM

! 3 A ~ T COSTA COUNTY COSTA COUNTY COM!3INED$1.141 $102 $ 32 $31 ,7731,09311 ,8355,883 5,883

383 56 15,78615.4055,760486 291 7,86342 4 2 42339

34474571

7,066 975 381 96,9392,233 337 131 33,5261.427 181 71 17,5451.737 245 96 24,238521 65 26 6,250491 62 24 5,946287 38 15 3,608175 22 8 2,086

40 5 2 484155 20 8 2,7727,066 975 381 96.455

484548 69 27 6,579-- --$ (548) $ (69) $ (27) $ (6,095)144 21 8 2,1403,136 346 136 31.55716.14% 10.42% 8.35% 34 .10%100.00% 10.90% 8.83% 41 .77%

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1. Organization and Oasis of PresentotionAlameda-Contra Costa Transit District (the District) is apolitical subdivision of the State of California established in1956 an d subject to transit district law as codified in the California Public Utilities Code.

The accompanying schedule is prepared in accordancewith the terms of a contract dated October 9,1974 betweenthe District and the Gay Area Rapid Transit District WART) asamended by the Contract Service Pricing Method describedin the Performance Audit Report of the District dated June 30 ,1980 and a letter agreementdated July 14, 1983 betweenthe District and GART (the Contract). The schedule includes therevenues and expenses of the District's Special Transit ServiceDistricts No. 1 and No.2 and other areas in which the Districthas contracted to provide transit service. Interest earnedon restricted funds is not considered in the determination ofcontract revenue and expense and, accordingly, has beenexcluded from the accompanying schedule.2. Summary of Significant Accounting PoliciesAllocation of Revenues and Expenses-In accordance withthe terms of the Contract,operator wages and fringe benefitcosts are based on actual costs incurred. Other expenses areallocated based on vehicle mileage and hours. The followingcosts are not allocated to the contract service areas and havebeen charged to Special Transit Service Districts No.1 andNo. 2 as follows:InterestCharter OfficePurchased transportationservices for elderly and

handicapped patrons[joord of DirectorsGeneral ManagerMeetings and membershipsTran sbay Terminal

District Na. 1100%100

808080

100

District Na. 2

100%202020

M a r l ~ e t i n g expenses are allocated to al l Contract ServiceAreas except GART.Fare revenue is allocated based on vehicle mileage andhours and passenger test counts. Advertising revenue is allocated based on vehicle miles. The allocated cost of providingtransit service, less related operating revenue, s funded fromlocal transportation funds, state and Federal operating assist-ance and, for GART express service, by direct reimbursementwhich is recorded as contract service revenue.Statistical Data - Hours and miles represent the standardoperating time and distance for each route multiplied by thenumber of times each route is traveled in the production ofrevenue. Included is a standard allowance for vehicles traveling to and from the beginning and end of each route.

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Farebox recovery ratio is the sum of fares,GART transfers,and other transit fares divided by total expenses beforedepreciation.Operat ing revenue ratio is the sum of fares,contract service, GART transfers,other operating revenue andinterest earned on unrestricted funds divided by total expensesbefore depreciation.Depreciation is computed using the straight-line methodover the following estimated useful lives:Guildings, structures and improvementsRevenue equipmentShop,office and other equipment and

10-35 years15 yearsservice vehicles 5-20 yearsSelf-Insurance Reserves-The District is self-insured forpublic liability and property damage up to $ 75,000 and

w o r l ~ e r s ' compensation claims up to $100,000 for eachoccurrence. Claims in excess of these amounts are insured withcommercial carriers. The District prOVides, in each period,reserves to cover the estimated costs of the self-insured portion of these claims.Pensions-The District has two noncontributory pensionplans,one covering all union employees and another providing similar benefits for nonunion employees. Provisions forpension accruals are based on percentages of gross payrol lwhich provide for the normal cost of the plans plus amor tizotion of prior service cost over a period of not more than fortyyears.Cash and investments equal to such provisions areappropriated annually by the Goard of Directors to providefor the payment of benefits.The provision for pension accrualfor the year ended June 30 , 1984 was $5 ,00 9,000 .3. Operating AssistanceFederal operating assistance funds are received pursuantto Sections 5 and 9 of the Urban Mass Transportation Act of1974.Such funds are apportioned to the local urbanized areaand are allocated to individual transit operators by MTC afterapproval by UMTA. Allocations granted during 1984 are subject to final audit and approval by MTC and UMTA.The District also received allocat ions of local transportationfunds pursuant to the Transportation DevelopmentAct of1971, certain local sales tax funds, and allocations from theState Transit Assistance Fund. These funds are allocated basedon annual claims filed by the District and approved by MTC.4. LitigotionThe District is involved in various claims and litigationarising in the ordinary course of its operations. None of theseis expected to have a significant effect on its operationsor financial condition.


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Documents

AC Transit Annual Report 1983-1984