(a)The commission shall conduct a financial efficiency review of the subject operators, which are AC Transit, BART, Caltrain, and Muni pursuant to the timeline set forth in Section 67766.
(b)Phase one of the financial efficiency review shall exclusively identify the following:
(1)Cost-saving measures implemented since January 1, 2020, by the subject operators.
(2)
(A)Early action strategies that would assist the subject operators in delivering increased or improved service and enhanced customer experiences with existing resources.
(B)In furtherance of the identification of early action strategies, phase one of the financial efficiency review shall include an analysis of the each subject operator’s real property assets. The analysis shall be conducted in consultation with the subject o
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(a)
The commission shall conduct a financial efficiency review of the subject operators, which are AC Transit, BART, Caltrain, and Muni pursuant to the timeline set forth in Section 67766.
(b)
Phase one of the financial efficiency review shall exclusively identify the following:
(1)
Cost-saving measures implemented since January 1, 2020, by the subject operators.
(2)
(A)
Early action strategies that would assist the subject operators in delivering increased or improved service and enhanced customer experiences with existing resources.
(B)
In furtherance of the identification of early action strategies, phase one of the financial efficiency review shall include an analysis of the each subject operator’s real property assets. The analysis shall be conducted in consultation with the subject operators, and shall include an inventory of existing holdings and identify potential redevelopment opportunities, with an emphasis on housing, commercial, and mixed-use projects, and other efficient land uses near transit that can support ridership growth and generate long-term value. The analysis shall include a property asset map and a preliminary list of redevelopment opportunities to inform phase two of the financial efficiency review.
(c)
(1)
Phase two of the financial efficiency review shall identify a menu of cost-saving measures that, if implemented, would reduce one-time and ongoing fixed and variable
costs for the subject operators. The review shall evaluate cost-saving measures using metrics such as cost per passenger mile and subsidy per passenger mile, reported in both nominal dollars and real dollars, and any other relevant measures needed to ensure results are quantifiable and actionable.
(2)
(A)
Phase two of the financial efficiency review shall also include a comprehensive regional assessment of development and financing strategies to maximize the value of each subject operator’s real property assets. The assessment shall, at a minimum, do all of the following:
(i)
Evaluate strategies to leverage assets through housing, commercial, mixed-use, and other transit-supportive development.
(ii)
Analyze potential impacts on ridership, revenue generation, fiscal stability, and broader public
benefits, including affordable housing, job creation, and systemwide financial sustainability.
(iii)
Consider governance structures and financing mechanisms, including opportunities for regional partnerships, and alignment with existing public and private financing tools.
(iv)
Produce a regional development and financing strategy.
(d)
The scope of both phases of the financial efficiency review shall consider administrative, operating, and capital costs and shall clearly distinguish between any recommended actions that would not impact service and those that would require service realignments or reductions.