MEMBERS PRESENT: John McLemore (Chair), Michael Burns, Jose´ Cisneros, Don Gage, Jim Hartnett, Sophie Maxwell (arrived 10:36 a.m.), Arthur Lloyd, Michael Nevin

MEMBERS ABSENT: Ken Yeager

MTC LIASON: Sue Lempert

STAFF PRESENT: Michelle Bouchard, George Cameron, Cheryl Cavitt, Bob Doty, Jennifer Hardie, Rita Haskin, Gigi Harrington, Martha Martinez, Ian McAvoy, David Miller, Bill Pedrini, Michael Scanlon, Mark Simon

Chair McLemore called the meeting to order at 10:05 a.m. and led the pledge of allegiance.

PUBLIC HEARING AND ADOPTION OF THE AMENDED CONFLICT OF INTEREST CODE

Chair McLemore opened the public hearing by having George Cameron, Chief Administrative Officer, give a brief background report.

Mr. Cameron said at its regular board meeting in October, the board of directors set today's hearing to receive comments on the proposed amendments to the Conflict of Interest Code. Following adoption, staff will forward the Code, along will other necessary documentation, to the Fair Political Practices Commission (FPPC) for approval.

Jennifer Hardie, Board Secretary, reviewed the steps taken to inform the public of the issues involved.

Chair McLemore asked if any correspondence had been received from the public to incorporate into the record.

Ms. Hardie replied no correspondence was received.

Chair McLemore called for public testimony on the proposal as outlined.

No public comments were offered and Chair McLemore closed the public hearing.

The motion to approve the amended Conflict of Interest Code was unanimously approved, by roll call, and Resolution 2004-39 was adopted.

PUBLIC COMMENT

Jeff Carter, Burlingame, said he made observations for the day after Thanksgiving schedule. He has conveyed to staff his suggestions for next year's service post-Thanksgiving.

CONSENT CALENDAR

The Board unanimously approved the following items by motion:

1. Adoption of Minutes of November 4, 2004
2. Statement of Revenue & Expenses, October 2004

CHAIRPERSON'S REPORT

Chair McLemore reported:

• Trains for Tots will be this weekend, December 4 and 5.
• The Nominating Committee for the 2005 officers has been formed of Michael Burns, Jim Hartnett and John McLemore. Nominations and elections will be at the next JPB meeting in January.
• Yesterday was World AIDSDay. The San Francisco observance was held at the National AIDS Grove in Golden Gate Park. Tom Nolan, Executive Director of Project Open Hand, was honored as the recipient of the 2005 Grove Award.
• The Santa Clara train station is having an Open House December 4-5.
• The Westbay Model Railroad Association, in Menlo Park, will be having its 2004 Christmas Show December 11-12.
• A special Trains for Tots lighting will be December 3 at 5:00 p.m. at the San Francisco station.

METROPOLITAN TRANSPORTATION COMMISSION (MTC) LIAISON REPORT (SUE LEMPERT)

• MTC will be holding hearings on its 2030 transportation plan. The final public hearing will be held on December 15 at 10:00 a.m. in Oakland.
• MTC staff presented a preliminary proposal to a joint policy committee of Association of Bay Area Governments (ABAG) and MTC last week. The proposal involved financial incentives for intense transit oriented development around corridors and train stations.

REPORT OF THE CITIZENS ADVISORY COMMITTEE (CAC)

Bruce Balshone, Chair, reported on the November 17 meeting, at SBC Park in San Francisco.

• There were preliminary discussions on the train orientation study and the bay regional rail study. The CAC concurred that it is going in the right direction.

REPORT OF THE EXECUTIVE DIRECTOR

Michael J. Scanlon:

• Key Caltrain Performance Statistics for October:
1. Average Weekday Ridership was up 11.9 percent, from 26,363 riders to 29,489.
2. Total Ridership was up 11.9 percent, from 701,563 riders to 785,069.
3. Total Revenue was up 13.7 percent, from $1.63 million to $1.85 million.
4. On-time Performance was at 95.8 percent versus 93.9 percent from last October.
5. Shuttle Ridership was up 3.9 percent, from 4,230 to 4,393.
• In October, 50 parking spots in the Mountain View overflow parking lot became available for customers. As anticipated, an additional 70 parking spots became available yesterday, December 1.
• A modified Sunday service schedule ran the day after Thanksgiving.
• Regular weekday service will run on Christmas Eve. Sunday service will be operated on Christmas Day.
• Regular weekday service will run on New Year's Eve, augmented with three special southbound trains. Sunday service will run on New Year's Day.
• The CEMOF groundbreaking was on November 8.
• Raymond Lee, DBE Officer, was recognized for his election as Chair of the California Unified Certification Program.
• Gigi Harrington was recognized as the new Chief Financial Officer.
• The monthly Safety and Security Report was distributed. There was one fatality, an apparent suicide, on November 6 in the Palo Alto area.

Mr. Scanlon said staff will take his suggestion under consideration.

Director Harnett said he would like to see comparative statistics, rather than on a monthly basis, under the enforcement section of the Safety and Security report.

Mr. Scanlon said staff will look at the statistics and will work on providing comparative information within the next few reports.

CALTRAIN RIDERSHIP - POST BABY BULLET

Bob Doty, Acting Chief Operating Officer, and Michelle Bouchard, Senior Planner, gave a Powerpoint presentation on Caltrain ridership post-Baby Bullet. The presentation highlighted the major changes due to Baby Bullet, the measures of success, count results and future opportunities.

Director Nevin said ridership has been steadily increasing since the low point in 2001 and that the freeway traffic seems almost at the level that it was at that time. He asked if staff expects ridership to continue to steadily increase and are there any concerns that a large ridership demand may come in a shorter amount of time and if so, whether the JPB be prepared.

Mr. Doty replied if the freeways were truly jammed, there would be more ridership throughout the rush-hour causing the shoulders to expand. However, he said riders are more selective and are going for the faster trains. Therefore, Caltrain is not at the point yet where ridership would increase strictly due to the freeways. He said various schedules already have been developed for different levels of train service that could be implemented to potentially increase ridership.

Director Lloyd said the idea of express service, running local to a point and then running express, is a great concept.

Director Burns said it appears there is no intention of taking the Baby Bullet away from any of the current stations.

Mr. Doty said there is currently a very stable operating schedule. However, staff is exploring providing different kinds of service to other stations to pull riders to all stations.

Mr. Scanlon said for the last couple of years, the JPB has been using some one-time funds. Based on fuel costs only, there most likely will be a need for a fare increase in the next fiscal year. Staff will be looking very closely at cutting service levels if additional funding isn't available.

Chair McLemore said as staff is reviewing stations for other service options in Redwood City and Sunnyvale, he would like staff to look at the ridership in Santa Clara, particularly since there is a connection to the San Jose Airport.

Mr. Doty said there are improvement plans for Santa Clara station including making it a non hold-out station.

Ms. Lempert said it is much harder to get people set in their ways to change their commute habits. However, with potential new commuters, particularly in the kind of developments that are envisioned around the new train stations, there could be new ridership, which will drive the future.

Mr. Doty said staff is looking at what can be done on an infrastructure basis to allow more trains to travel faster.

Richard Mlynarik, San Francisco, said the JPB had a rare occurrence where service was added, it cost less, and there are more riders. Most of the great projects in the Bay Area cost a great deal of money and they result in additional operating costs. However, with this project, existing infrastructure and crews were used and improvements were made. He said staff has measured ridership, and things are going well, although weekend service could be better.

Jeff Carter, Burlingame, said not every customer is going to be able to travel to a Baby Bullet station that has faster service. Local trains remain important because many people walk to those stations. Turning trains in San Francisco, level platforms and electrification also will improve running times. He said he hopes there will not be an additional expense in the local trains. He said he expects weekend service to take off next summer and suggested having a later service on Sunday.

REJECTION OF BID PROTEST AS UNTIMELY AND WITHOUT MERIT; AND REJECTION OF LOW MONETARY BID AS NON-RESPONSIVE; AND AUTHORIZING AWARD OF A CONTRACT FOR PROVIDING LOCOMOTIVE HEAD-END POWER (HEP) DIESEL ENGINE REPLACEMENTS AND ALTERNATOR OVERHAULS

Cheryl Cavitt, Director of Contracts and Procurement, said staff recommends that the board reject the bid protest received from Peterson Powers Systems, Inc. as untimely and without merit.

Time was allowed for a representative from Peterson Power Systems, Inc. to present its protest to the board. A representative was not present.

Ms. Cavitt said the Staff Coordinating Council (SCC) recommends the board approve rejection of the low monetary bid received from Peterson Powers Systems, Inc. of San Leandro, California as non-responsive for failure to follow bid solicitation requirements; award of a contract to the next lowest responsive and responsible bidder, Transportation Technology, Inc. of Yonkers, New York for a total estimated cost of $1,180,27l; and authorize the Executive Director to execute a contract with Transportation Technology, Inc. in full conformity with the terms and conditions of the bid specification documents.

The motion to reject the bid protest from Peterson Power System, Inc. and to award to the contract to Transportation Technology, Inc. was unanimously approved, by roll call, and Resolution 2004-40 was adopted.

AUTHORIZATION FOR DISPOSITION OF OBSOLETE ROLLING STOCK AND RELATED SPARE PARTS

Cheryl Cavitt, Director of Contracts and Procurement, said the SCC recommends the board authorize the Executive Director to dispose, by sale, of twelve 1952 Budd passenger trailers, two 1952 Budd cab control cars and one lot of spare parts in accordance with the existing JPB procedures.

The disposition by sale was unanimously approved, by roll call, and Resolution 2004-41 was adopted.

REGIONAL MEASURE 2 FUNDING FOR REGIONAL RAIL PLAN

Howard Goode, Deputy Executive Director, said this action item approves the submission of an application for funding to MTC. This action is also on the MTC agenda. It provides for the allocation of $3 million for the preparation of a Regional Rail Plan over the next 18 months. This action is provided for under Regional Measure 2, passed in March by Bay Area voters. It calls for the adoption by MTC in mid-2006 of a Regional Rail Plan, to encompass a series of objectives. The legislation sets forth 12 specific things to be investigated in the study ranging from connectivity and access to funding and coordination. The legislation also provides this plan be prepared through the cooperation of various rail agencies within the Bay Area, with Caltrain and BART as lead agencies. The recipients for the funding are Caltrain and BART. BART also is acting on an application for its board to submit to MTC. BART and Caltrain will be working with other rail agencies in the region to develop this plan and forward it to MTC. Mr. Goode expects to keep the board updated of this project.

Mr. Goode said the Staff Coordinating Council recommends the board approve the Regional Rail Plan Sub-Elements and Initial Project Report (IPR) set forth in the agenda packet; approve MTC and the California High Speed Rail Authority as the implementing agencies for the High Speed Rail Integration and Transit Connectivity elements of the Plan; and authorize the Executive Director to execute any necessary documents or agreements to receive Regional Measure 2 funds.

Richard Mlynarik said he encourages the JPB staff to look at what has worked at Caltrain to see if that could be the direction of a future Regional Rail Plan rather than building on the recent failures at the local level.

The application for Regional Measure 2 funding for the Regional Rail Plan was unanimously approved, by roll call, and Resolution 2004-42 was adopted.

AUTHORIZATION FOR AN AGREEMENT WITH SAN MATEO COUNTY TRANSIT DISTRICT TO UNDERWRITE A PORTION OF SUPPLEMENTAL LAW ENFORCEMENT SERVICES PURSUANT TO AN AGREEMENT WITH THE COUNTY OF SAN MATEO

Mr. Scanlon said the staff report should read, under Budget Impact, the contract will expire on June 30, 2008, not June 31, 2008.

Bill Pedrini, Chief of Protective Services, said the SCC recommends the board approve an agreement with the San Mateo County Transit District ("District") to underwrite a portion of supplemental law enforcement services to be provided, for a three-and-a-half-year term, at a total cost not to exceed $4,761,618, pursuant to an agreement with the County of San Mateo. The JPB's contribution to the law enforcement services agreement will not exceed $3,333,132. This action would renew the existing agreement for law enforcement services. The proposed three-and-a-half-year agreement will coincide with the fiscal year budgeting as opposed to the current calendar year agreement. The County of San Mateo provides Sheriff's deputies and communications services for the entire rail system as well as sharing a contract with SamTrans for law enforcement on bus services.

The motion to authorize an agreement with San Mateo County Transit District to underwrite a portion of supplemental law enforcement services was unanimously approved, by roll call, and Resolution 2004-43 was adopted.

EXTERIOR TRAIN ADVERTISING DEMONSTRATION PROJECT STATUS REPORT

Rita Haskin, Chief Communications Officer, said this report is for information only and no policy action is required. She said the goal of wrapping the trains was to generate up to $360,000 in a one-year demonstration project. The project will generate $480,000 in revenue.

Ms. Haskin said Target signed on immediately with two of the three available trains for a six-month run. They have extended their agreement and wrapped two more trains for another six months. The third train was not sold within the first six months. Spanish Broadcasting Systems will be signing up for the second six months, which will run beyond the original one-year pilot project by a month. Caltrain has received a number of comments regarding this project. Thirty-five people noted they prefer the windows to remain uncovered, 24 opposed any exterior advertising and four people approved of the exterior wraps. The majority of the people understand the JPB needs the revenue. A request for proposals (RFP), due out next month, will cover a multi-year period, taking into consideration comments from the public and the CAC. The RFP will limit the wraps to three trains, leave a percentage of windows uncovered and the vestibule windows will not be covered. The wrapped trains are five-car consists and will have two bike cars.

Director Burns said when Muni renewed its contract for wrapped advertisements, the advertisers came up with creative ways to keep the windows clear. He supports this project, but if there is no difference in revenue, he would prefer to have some of the windows remain clear.

Norman Rolfe, San Francisco, urged all windows to be uncovered. While looking at the staff report of those quizzed, 55 percent said they wanted the windows uncovered while only 6 percent said they liked the wrap as is.

Mr. Scanlon said people were not quizzed. The staff report reflects the sum total of comments received.

Jeff Carter said he likes the program and he thinks the Target trains look great. He agrees at least some of the windows should be uncovered and if more revenue could be generated, perhaps another train could be wrapped.

Director Gage suggested that staff ask the companies advertising if they want to sponsor special events, like Toys for Tots.

Mr. Scanlon said the JPB works through Viacom so staff does not directly work with the companies. However, it is a good suggestion and will be passed on to Viacom.

CORRESPONDENCE

Previously distributed.

DATE/TIME OF NEXT MEETING

Thursday, January 6, 2005, 10 a.m. at San Mateo County Transit District Headquarters, 1250 San Carlos Avenue, San Carlos, California 94070.

REPORT OF LEGAL COUNSEL

1. Closed Session: Real Property Negotiations pursuant to Government Code Section 54956.8. Conference with General Counsel pertaining to Lick-Gilroy Trackage Rights Negotiations with Union Pacific Railroad Company
2. Approval of Third Addendum to Trackage Rights Agreement, Lick/Gilroy Line, between Peninsula Corridor Joint Powers Board, Santa Clara Valley Transportation District and Union Pacific Railroad Company and related matters

Mr. Miller suggested the board authorize the Executive Director to execute the third amendment to the Trackage Rights Agreement, Lick/Gilroy Line, between Peninsula Corridor Joint Powers Board, Santa Clara Valley Transportation Authority and Union Pacific Railroad Company and to take such other actions he deems necessary to facilitate timely closure of the real estate transaction between the VTA and Union Pacific whereby VTA will purchase approximately 47.75 acres of Union Pacific's Newhall yard site and will obtain rights to increase the number of commuter trains between San Jose and Gilroy from five to10 daily roundtrips.

The motion to approve the third amendment to the Trackage Rights Agreement was unanimously approved, by roll call, and Resolution 2004-44 was adopted.

ADJOURNED

Meeting adjourned at 11:43 a.m.