MEMBERS PRESENT: Michael Nevin (Chair), John McLemore (Vice Chair), Maria Ayerdi (arrived 10:16 a.m.), Arthur Lloyd, Steve Schmidt, Manny Valerio, Ken Yeager, Sue Lempert (MTC Liaison)

MEMBER ABSENT: Mike Burns

STAFF PRESENT: Mike Scanlon, David Miller, Jim Gallagher, Cheryl Cavitt, George Cameron, Roger Contreras, Chuck Harvey, Rita Haskin, Christina Jacinto, Aurora Jose, Jerry Kirzner, Martha Martinez, Liz Wiecha

Chair Nevin called the meeting to order at 10:09 a.m. Director McLemore led the pledge of allegiance to the flag.

Chair Nevin thanked Director McLemore, Councilman for the City of Santa Clara and JPB Board member, for facilitating this meeting in the City of Santa Clara. Director McLemore thanked staff and the public for the good turn out and for coming to this meeting.

PUBLIC HEARING: PROPOSED CALTRAIN FARE ADJUSTMENT

Chuck Harvey, Chief Operating Officer, advised that the purpose of the public hearing is to receive testimony on the proposed changes to the Codified Tariff to take effect July 1, 2002. He stated the last fare increase was four years ago. He outlined the following as the principal reasons for the fare increase: (1) inflation; (2) decline of fare revenue by $4.3 million; and (3) decline of farebox recovery ratio to approximately 36 percent. He stated all JPB partners are facing similar financial crisis and their inability to increase their contributions next year will pose difficulties to the JPB. Staff is aggressively looking at cost-cutting measures that will reduce the deficit by at least half. Fiscal 2003 budget requires a very careful balance of member agency contributions, service costs, and revenues. Staff would like to maintain the maximum level of service on Caltrain for customers. Mr. Harvey reviewed the process adopted in making this hearing known to the public. He discussed the proposed changes in the Codified Tariff.

In response to the questions of Director Yeager on what cost-cutting measures are being looked at and the security contract with the San Mateo County Sheriff’s Department, Mr. Harvey mentioned the Amtrak contract has been changed from a fixed price to a cost-plus contract. The annualized cost of additional security on the railroad will be maintained until FY 2003.

Director Schmidt suggested a higher increase on the daily parking fee than the monthly rate as an incentive to customers to use the monthly rather than the daily. He also questioned why the original proposal to increase the monthly parking fee of $18 was not carried out. Mr. Harvey responded the primary reason for the roll back from $18 to $15 was the tremendous amount of public comment received opposing the $18.

Director Schmidt further suggested a discount on the round trip ticket by ten percent. Executive Director Michael Scanlon advised what staff is proposing at this point is an interim fare increase to balance an operating budget for the coming year in light of the revenue deficit. Staff will come back to this Board in the near future with a comprehensive and scientific fare proposal that will include recommendations on discounted round trip tickets.

Director Schmidt asked if this fare increase would put the JPB back to 40 percent operating revenue recovery. Roger Contreras, Chief Financial Officer, responded it would very likely put the JPB close to 40 percent recovery.

Board Secretary Aurora Jose reviewed the steps taken to inform the public of this hearing. Speakers from the public were called.

Vaughn Wolffe, Rail Passengers Association of California, did not oppose the projected fare increase. He however preferred a five percent increase at this time. He remarked the fare increase should be related to the costs.

Francis Wong, Mountain View, supported the general fare increase and the phase out of the peak discount fares. He commented when fares go up, expectations for the quality of service also rise.

Ed Adams, United Transportation Union, strongly endorsed the elimination of the discount off-peak ticket. He also brought up the reimbursement to passengers if the ticket vending machine malfunctions and shorts the rider some amount of change. Currently, the conductor is authorized to refund only up to $2. He requested refunding the maximum amount that the machine can issue. The Board and Mr. Scanlon found the suggestion meritorious.

Margaret Okuzumi, Bay Rail Alliance, said they understand the sudden revenue shortfall due to reliance on sales tax revenue and they do not oppose the fare increase. She underscored the need to make the public understand the reason for the increase and let them know what JPB is doing to control costs. She supported increasing parking fees because currently it is a bargain.

Andy Chao, student, stated he is not happy with the Caltrain fare increase. Other agencies have also increased fares and it will be hard for students to make both ends meet.

Bruce Balshone, opposed the fare increase and urged staff to study the issues further. He suggested deferring action until the effect of the weekend closures is determined. He observed at the CAC meeting, it was not made clear whether there would be a reduction of train service.

Jeff Carter opposed the proposed fare increase, specifically the price of the monthly pass, the Peninsula pass and any increase more than five percent a year.

Zachary Cribary, 15 years old, warned that fare increase causes reduction of ridership. He indicated the JPB should make sure that they have enough funds before they embark in any project. He strongly supported the parking fee increase because other people who do not use Caltrain are possibly using the parking lots. He also urged JPB to speak with other transit agencies before they increase fares.

Gerry Wood, representing his wife who takes Caltrain on a monthly basis, asked for the disclosure of specific cost cutting measures. He also requested disclosure of how much would be saved with the cost cutting.

There being no more speakers, Attorney David Miller, advised that the public hearing was conducted in accordance with law and all of the legal requirements have been satisfied. He recommended that the public hearing be closed. He offered language to amend the Codified Tariff to remove the $2 refund limit covering TVM malfunctions.

Upon motion duly seconded, the Board, by roll call, closed the public hearing.

Director Schmidt noted that he understood the existing economic crisis and the urgency of the proposed fare increase. He, however, reiterated reference for an increase of the monthly parking rate from $10 to $18 and the daily parking rate from $1 to $2. He also suggested that a discount in round trip fares be addressed in the comprehensive fare study. Mr. Scanlon, upon advice of Attorney Miller, remarked that an increase that is more than what was advertised cannot be implemented. As advertised, the daily parking rate would be increased from $1 to $1.50. He assured that Director Schmidt’s concern will be addressed in the comprehensive fare study.

Director Lloyd requested staff to look into the discount on round trip fare, the return to be valid only for the day of purchase.

Directors Yeager and Ayerdi raised questions to which Mr. Scanlon gave the following responses:

• Advertising as another source of revenue: Advertising is a potential source of revenue. Its feasibility will be investigated.
  
  
• Let the public know the reasons for the projected fare increase: The various modes of information dissemination utilized by staff were outlined to the Board.
  
  
• After the Fare Structure Study is completed, might there be another increase in the parking rate and will the discount on round trip ticket be implemented: The Fare Study will be comprehensive and will look at everything.
  
  
• What specifically will you be doing to look at other sources of revenue?: Mr. Scanlon will discuss these items with staff. They have always been pursuing additional sources of revenue. He mentioned the possibility to sell the tax depreciation rights of the right of way, the lease/leaseback of equipment, and leases of the right of way.
  
  
• How will the public be advised on how costs are controlled: Mr. Scanlon responded the budget will reflect the items that are subjected to cost cutting.
  
  
• Does Caltrain offer discounts to high school students: Mr. Scanlon answered students are granted discounted tickets.

There being no more questions from the Board and the public, Attorney Miller advised, with respect to the refund when the TVM machine malfunctions, the provision on page 5 of the Codified Tariff, item 4 should read as follows "The conductors or ticket agents may refund up to the maximum sum that a TVM machine is capable of receiving and processing when the TVM machine does not provide change." instead of the fixed dollar amount in the staff report.

Director Schmidt, concerned with losing ridership as a consequence of the fare increase, suggested creating an incentive, by discounting the round trip tickets by 10 percent. Mr. Scanlon agreed to the idea. However, he cautioned that before this is done, staff needs to analyze the revenue impact. Also ticket vending machines must be reprogrammed. He preferred that this matter be considered in the fare study.

The Board, by roll call, with the incorporation of the revision to the resolution as phrased by counsel, unanimously adopted the Amended and Restated Codified Tariff (Resolution No. 2002-10).

PUBLIC COMMENT

Francis Wong, thanked the JPB for allowing the Golden Gate Railroad Museum to operate the steam locomotive on the Peninsula mainline on March 16 and 30. He credited the JPB San Jose staff, train crews and Caltrain police who extended their skills, courtesy and support for the success of the trips.

Michael Kiesling, having recently visited Germany, strongly recommended the Board take a trip to Berlin and Munich to observe the noiseless trains that do not create any noise. He suggested the Board look at what can be done with national laws to allow staff to look at the world market so that in the future, staff can get the best that is available and keep the railroad improving.

Margaret Okuzumi, commented that in keeping with the Santa Clara County Measure B, Caltrain should plan the station improvement projects that will help pedestrian access and safety as a top priority.

CONSENT CALENDAR

The Board, by roll call, unanimously approved the items under the Consent Calendar, as follows:

1. Adoption of Minutes of March 2002 meeting
   
   
2. Statement of Revenue and Expense, February 2002
   
   
3. Authorization for the Executive Director to Execute a Two-year Three-Party San Jose Parking Agreement (Resolution No. 2002-11).
   
   

CHAIRPERSON'S REPORT

Chair Nevin reported after having participated in the meeting of the Bay Crossing Study he was overwhelmed with the costs associated with the different project proposals. He noted from the comments that Caltrain is very much in the forefront of transit schedules. This observation was shared by Director Schmidt.

Director Ayerdi added Caltrain’s corridor will be the first right of way that will be used for High-Speed Rail operations. She supports bringing it to San Francisco to the Transbay Terminal and to the East Bay. She maintained that even if the costs of projects are very high, those concerned must be visionary and optimistic and must move forward. They should get away from the costs of projects and start figuring out how to make them happen.

MTC LIAISON REPORT

Sue Lempert reported the Dumbarton Rail Project, at $360 million, was the cheapest alternative in MTC’s list. She announced the only Public Workshop on the Bay Crossing Studies and the Alternatives that will be held in Menlo Park Library on April 30 from 6:30 to 8:00 p.m. The reason for the Bay Crossing Study was to have another look at the South Bay Crossing. Most commissioners were concerned that there was no transit plan for the New Bay Southern Crossing and that it would be all automobiles. There was tremendous amount of concern on what this would mean to highways 101 and 880.

REPORT OF THE CITIZENS ADVISORY COMMITTEE (CAC)

Bruce Balshone reported the CAC members, in their meeting, was involved in the issue of fare increase. Also, they were formulating by laws amendments which they will soon present to the Board for approval. They felt that they need this to conduct business.

APPROVAL OF CITIZENS ADVISORY COMMITTEE REQUIREMENT AND POLICY

Mr. Balshone presented to the Board for approval by laws changes concerning a proposed CAC attendance policy, term limits and the rotation of the meeting venues. The Board agreed that CAC attendance and meeting policies should be defined. Directors Valerio and Schmidt offered some modifications to the term limits, changing the 3-year term limit to 2 years. Directors Maxwell and Ayerdi proposed taking the suggestions back to the CAC to give them the opportunity to consider them and come back next month for Board action.

REPORT OF THE EXECUTIVE DIRECTOR

Executive Director Michael Scanlon thanked Director McLemore, Jennifer Sparacino, and Yvonne Galleta for accommodating and arranging this meeting. He encouraged everyone to get the nice experience of riding the Breathe Easy Express (BEE) a hybrid electric shuttle that brought in attendees to this meeting from the Caltrain station. Mr. Scanlon gave the following report:

• For the fifth consecutive month, average weekday ridership continues to decline.
  
  
• Total revenue was down ten percent from $1.8 million to $1.6 million.
  
  
• On-time performance is off from 96.8 percent to 95.6 percent.
  
  
• Caltrain shuttle ridership is down 17.3 percent from 4,300 riders per day to 3,600.
  
  
• Because of a very good start at the beginning of the year, year-to-date, average weekday ridership and revenues were off just 1.2 percent from 32,000 riders to 31,500 and from $15.5 million to $15.2 million
  
  
• On-time performance year-to-date is 95.3 percent, however shuttle ridership is off 8.5 percent.
  
  
• Commute pattern remains about the same at 60 percent going north and 40 percent going south.
  
  
• He commended Michelle Bouchard, Planner, for conducting an actual on-board count using the a.m. boarding formula, that yielded the number of 31,000 riders a day, which is still good.
  
  
• He reminded that staff is redoing schedules. They will be realigned once railroad improvement constructions are completed.
  
  
• The feedback received from the public regarding the fare increase was composed of three letters, two telephone calls and 77 e-mails.
  
  
• He underscored the popularity of the express trains to the public.
  
  
• He also reported on the ball game ridership and the success of the etiquette campaign.
  
  
• There was a recent fatality at the Burlingame train station. He had a very good meeting with the new coroner. They discussed ways to expedite the investigation process to get trains resume service more quickly going immediately following fatalities.
  
  
• He recognized Leonard Chavez a San Francisco engineer who, recently, was able to prevent what could have been a serious injury or fatality.
  
  
• The Presta Consent Decree implemented as an ADA claim settlement has been lifted. He commended General Counsel and Attorney Kristin Lamson for their efforts in this regard.
  
  
• Mr. Scanlon stated staff will be mailing to the Board a copy of the Operating Budget. The Capital Budget is more difficult and will be worked on for the next couple of months.

At this time, 11:45 a.m. due to conflict with another meeting, Director McLemore asked that he be excused from the remainder of the session. He thanked everyone for coming to the City of Santa Clara.

AWARD OF CONTRACT TO HERZOG CONTRACTING CORPORATION/STACEY & WITBECK, INC. CONSTRUCTORS, A JOINT VENTURE, FOR THE NORTH CTX CONSTRUCTION PROJECT IN THE TOTAL AMOUNT OF $64,453,863

Elizabeth Wiecha reported bids were solicited on this item in October 2001. Staff is recommending award of contract to the lowest bidder, Herzog Contracting Corporation. The contract period is 650 days. The construction is scheduled to start in May, completion in mid February 2004. The first weekend closure is tentatively scheduled on the Memorial Day weekend. She outlined the scope of work. She stated the project is fully funded, participation is 60 percent Federal, 21 percent State and 11 percent local, with contribution from Catellus Corporation of $4.4 million. An Agreement with Catellus has been finalized for the full amount of their share. Their contribution will be increased to $7.1 million in addition to all customary, engineering, construction management and other costs associated with their portion of the project. Ms. Wiecha stated this project will implement improvements from San Francisco down to Menlo Park. Regarding the southern portion of the project, staff is in the process of resolving some issues involving local contributions to fully fund the project.

Director Schmidt inquired about the source of the local component of the funding allocation. Ms. Wiecha responded they are contributions from the member agencies.

Director Yeager asked what would be the downside if the southern portion is not funded. Ms. Wiecha answered the Centralized Traffic Control and passing tracks will only be on the northern section of the project. The CTC would be an enhancement of the existing one but it would not cover the entire property. Also there is a possibility of looking at downscoping the southern portion of the project to utilize available funds and looking at what the priorities are. Passing tracks are needed in the Sunnyvale area in order to have the Baby Bullet Express service. Mr. Scanlon remarked there is a shortfall in the cash flow right now. He said he is unable to give the assurance that the money will be available for CTX South.

It was moved, seconded and unanimously approved by roll call that the contract be awarded as proposed (Resolution No. 2002-12).

REPORT OF LEGAL COUNSEL

Mr. Miller noted there were no additional items to report.

CORRESPONDENCE

Elizabeth Sullivan, City Car Share, spoke about the non-profit high-tech car-sharing group. She highlighted her correspondence sent to the Board that presents car-share cars located at the BART stations as a way to enhance and extend transit. She is interested in talking with Caltrain on bringing the program south. She has been talking with the City of Palo Alto, Sunnyvale and San Jose about partnership, similar to the partnerships with the City of San Francisco, Oakland and Berkeley.

Director Lloyd recognized the Executive Director of Golden Gate Railroad Museum, Mike Mangini in the restoration of the 2472 and his support of Caltrain, and the Toys for Tots.

ADJOURNED: 11:57 a.m.