Significant Board Policies

Board Rules and Operating Procedures – Resolution No. 1-1 (The entire policy is included in this
resource book for your reference.)

The Rules and Operating Procedures establish the Board’s rules of order, selection, terms and roles of
officers, procedures for Board and committee actions, public inclusion, and meeting notice requirements. This
resolution declares the Washington State Department of Transportation Secretary has voting status as a
member of the Board (Board approval of that status is required by RCW). The rules also dictate the actions
that constitute major decisions of the Board. Major decisions require a two-thirds affirmative vote of the entire
membership (super-majority).

Ethics Policy – Resolution No. R81-2 (The entire policy is included in this resource book for your
reference.)

Establishes a code of ethics for Boardmembers, officers, and employees of Sound Transit including political
activities, proper use of public property, solicitation of and making campaign contributions, and procurement.
The policy establishes enforcement, penalties, and public disclosure regarding the code of ethics.

Whistleblower Policy – Resolution No. R87

Provides protection to employees who report improper governmental actions taken by other employees. The
policy contains procedures for reporting improper actions, responding to complaints of improper actions, and
prohibits intimidation or retaliatory actions against those who report improper actions.

Per Diem and Expense Reimbursement Policy – Resolution No. R98-7

Provides for Boardmembers, officers, and employees to be reimbursed for expenses incurred while conducting
official Sound Transit business. The policy defines appropriate reimbursable expenses, per diem rates,
mileage reimbursement rates, and travel. It also establishes compensation for Boardmembers who are part-
time elected officials.

Public Disclosure Request Policy – Resolution No. R98-24

Ensures compliance with the public records disclosure requirements of Chapter 42.17 RCW, which requires
agencies to provide access to public records, to protect them from damage or disorganization, and to prevent
excessive interference with other essential functions of the agency. Each department will organize and
maintain public records. The policy is consistent with policies adopted by other public agencies and complies
with state law.

Financial Policies – Resolution No. R2008-10, Appendix B

The Board adopted a framework to finance voter-approved regional transit system plans by setting local tax
rates, focusing on minimal debt financing, requiring conservative projections for federal and state funding, and
establishing a definition by which equity will be measured. The Financial Policies also provide tools to the
Board to appropriately manage cases where expenditures exceed revenues by 5% or greater and for cases
where revenue will exceed expenditures.

Equity is defined in the Financial Polices as utilizing local tax revenues for projects and services that provide
transportation benefits to the residents and businesses in each of the subareas generally in proportion to the
level of revenues each subarea generates. The Board agrees that the facilities, projects and services
identified in all voter-approved system plans represent a reasonable definition of equity.

The Financial Policies also address funding system-wide expenditures, debt management, and public
accountability (e.g. the Citizen Oversight Panel).

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Budget Policies – Resolution No. R2002-08

The Board adopts the annual budget before the end of the calendar year. Budget adoption requires a two-
thirds affirmative vote of the entire membership of the Board. The Budget Policies address content, form,
control, reporting, adoption process, authorization, and administration. The Budget includes estimated
revenues, estimated expenses. Adoption of the budget constitutes an endorsement of the transit improvement
plan (TIP). The TIP provides projected capital and operating expenditures for the construction and operation
of the regional transit system.

Asset Management Policy – Resolution No. R2015-32

Establishes policy for agency enterprise asset management and funding necessary to keep agency assets in a
state of good repair. The policy establishes a 40-year State of Good Repair Forecast (SGRF) of the total
amount required for lifecycle maintenance and capital. The policy requires that the first six years of funding for
the SGRF be included within the capital replacement and maintenance program, and the full 40-year SGRF be
included in the long-term financial plan. The policy also requires a capital replacement reserve to fund
unexpected capital replacement requirements, and an independent assessment of the SGRF at least every
five years.

Asset Liability Management Framework – Resolution No. R2004-14

Establishes an asset liability management framework and is divided into four policies – Asset Liability
Management, Investment, Debt Management, and Debt Swap. The Asset Liability Management Policy
requires investment balances and debt to be managed on a consolidated basis. The Investment Policy
specifies that public funds be invested in a manner that provides highest return with maximum security, while
meeting cash flow requirements. The Debt Management Policy requires management of debt obligations to
minimize net debt services payments. The Debt Swap Policy applies to interest rate management
agreements.

Procurement Policy – Resolution No. 78-2

Governs the procurement of contracts, materials, work, agreements, and services and for the acquisition and
use of property. It delegates authority to the CEO to enter into contracts and agreements that do not exceed
$200,000, delegates authority to certain committees to authorize contracts and agreements greater than
$200,000, but lesser than $5 million. The policy affirms the agency’s commitment to full and open competition,
inclusion of small businesses, and diversity and sustainability initiatives.

Environmental Policy – Resolution No. R2004-06

Establishes an Environmental Management System with environmental objectives and targets that are
measurable, meaningful and understandable. This policy also creates a commitment to being an
environmental leader by complying with all environmental laws and regulations, restoring the environment by
providing mitigation and corrective action, increasing awareness of environmental issues among agency
employees, and educating the public about the environmental benefits of transit.

Sustainability Policy – Resolution No. R2007-12

Directs the CEO to integrate sustainable business practices and strategies throughout the agency. The
strategies shall address petroleum conservation, alternative fuels, renewable energy, water conservation,
toxics reduction, building and facility performance. It requires the agency to establish measurable targets and
report progress to the Board. Possible applications of sustainability include green building and design,
environmentally preferable purchasing, waste prevention and recycling, climate change and energy efficiency.

Transit-Oriented Development Policy – Resolution No. R2012-24

Establishes a guide for assessment and facilitation of transit-oriented development (TOD) during planning,
design, construction and operation of the high-capacity transit system. Sound Transit’s primary responsibility is
to complete and expand the high-capacity transit system—a key step toward meeting local and regional land

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use goals. The policy also clarifies Sound Transit’s potential roles and responsibilities in TOD by defining types
of TOD strategies in which Sound Transit may participate, including Agency TOD and Community TOD.

System Access Policy – Resolution No. R2013-03

Establishes Sound Transit’s approach for support and investment in system access improvements providing
for pedestrian, bicycle, connecting transit and vehicle access in cooperation with partners by establishing
criteria for consideration in determining investments in system access facilities and infrastructure, parking
management tools including parking permits and fees, and parking enforcement mechanisms.

Scope Control Policy – Resolution No. R2009-24

Manages project costs through the control of scope, and establishes a manner for responding to requests from
other governments to enhance projects beyond their initial budget and established scope. The policy requires
Sound Transit to recover the full costs of betterments and requires Board approval for scope or budget
expansion, or to include betterments.

Bicycle Policy – Motion No. M2010-87

Affirms that Sound Transit encourages bicycle access to its services and facilities while maintaining safety and
balancing the needs of all transit riders. The policy encourages partnerships with other agencies and
organizations to leverage funding to improve bicycle access to Sound Transit services and facilities. It also
authorizes the CEO to develop policies related to bicycle use and storage on Sound Transit vehicles and
facilities.

Facility and Link System Naming Policy – Resolution No. R2012-02

Establishes a policy for naming Sound Transit facilities, including stations, maintenance bases, other facilities,
and Link system projects. This policy implements a three-phase process for selecting permanent facility
names, establishes a facility naming timeline and criteria, and applies a comprehensive system-wide approach
for naming Link lines and extensions that follows a color scheme and an end-of-the-line destination.

Inclusive Public Participation Policy – Resolution No. R2011-15

Assures meaningful access to public involvement and community outreach programs for minority, low-income
and limited English proficient populations and ensures that Sound Transit’s public involvement and community
outreach programs are designed to meet the goals of Title VI the Civil Rights Act of 1964.

Art Policy – Resolution No. R2010-21

Establishes the Sound Transit Art Program (STart) as 1% of capital construction costs, excluding the cost of
tunneling. STart funds are allocated to each subarea based on the calculation of construction costs, excluding
the cost of tunneling within each subarea.

Fare Policy – Resolution No. R2010-10

Establishes minimum farebox recovery ratios of 20% for ST Express, 23% for Sounder, and 40% for Link. If
farebox recovery falls below the minimum, a fare change process is triggered. In 2014, the policy was
amended to include a Low Income Adult fare category. The Board establishes fare rates and fare structures
for the service modes by separate action.

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Policies for Conducting Equity Analyses of Major Service Changes and Fare Changes – Resolutions
Nos. R2013-18 and R2013-19

Establishes policies for conducting equity analyses of major service changes and fare changes impacting
minority and low income populations in a manner that complies with Title VI of the Civil Rights Act of 1964.
These resolutions establish thresholds for determining whether proposed major service changes or fare
changes indicate disparate impacts to minority populations or disproportionate burdens to low income
populations, and require Sound Transit to consider steps to avoid, minimize or mitigate such adverse impacts.

Real Property Acquisition and Relocation Policies – Resolution No. R98-20-1

Guides the acquisition of real property and the relocation of property owners, businesses, tenants, and
individuals. Sound Transit must pay “just compensation” to acquire real property. Displaced owners and
tenants may be eligible for relocation advisory services and payments. Sound Transit’s authorizing legislation
grants the power of eminent domain to accomplish acquisitions when efforts to reach agreement with property
owners are unsuccessful.

Real Property Excess, Surplus, and Disposition Policy – Resolution No. R2013-30

Establishes priorities to be considered in disposing of property that Sound Transit has determined is excess
and will no longer be needed for transit use. This policy also requires the chief executive officer to report on
Sound Transit’s excess real property inventory to the Board on an annual basis, and to establish an internal
review process and appoint an internal Real Property Utilization Committee to review excess real property and
recommend real properties to be declared surplus.

Program Realignment – Sound Move and ST2 Plans – Motion No. M2010-102

As a result of the 2007-2009 national economic recession, Sound Transit has insufficient revenue to complete
all elements of the ST2 program as originally planned. This action authorized advancement of specified capital
projects and service improvements that are currently affordable, best achieve the stated goals of Sound Move
and ST2, and/or are necessary to keep the existing system in a state of good repair.

Long Range Plan Update – Resolution No. R2014-31

Guides the long-term development of the regional high-capacity transportation system. The Long Range Plan
was updated in 2014 to make the Long-Range Plan consistent with updated local and regional plans and to
provide information about high capacity transit corridors and representative projects to be considered in the
development of an ST3 system plan.

Project Labor Agreements on Construction Contracts Policy – Resolution No. 99-21 and Motion No.
M2002-06

Establishes the use of project labor agreements (PLAs) for a portion of Sound Transit construction contracts
and includes provisions for community participation in forming, monitoring and overseeing project labor
agreements. Other key provisions include apprenticeship requirements on certain construction contracts
where project labor agreements are not used, specific terms to increase participation of low-income people of
color and women, and a commitment from labor unions to agree not to strike. Motion No. M202-06 added ST2
light rail construction projects to the scope of Sound Transit’s Project Labor Agreement.

Adopted motions and resolutions are available on the Sound Transit website or from Board Administration staff.

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