MEMBERS PRESENT: Michael Nevin (Chair), Maria Ayerdi (arrived 10:10 a.m.), Arthur Lloyd, Mike Burns, Sophie Maxwell (arrived 10:15 a.m.), Steve Schmidt, Manny Valerio, Ken Yeager, Sue Lempert (MTC Liaison)

MEMBER ABSENT: John McLemore (Vice Chair)

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

Chair Nevin called the meeting to order at 10:05 a.m. and led the Pledge of Allegiance.

PUBLIC COMMENT

Speaker, Jeff Carter, commented on an article in the San Mateo County Times from Thursday, April 30th about what Amtrak and JPB do when there are accidents along the track. He thought it was a good point of view. Also, Mr. Carter requested that we push for more money in public transportation to eliminate the need for service cuts and fare increases.

Speaker, Vaughn Wolffe, mentioned he saw an item in the paper about the CTX Project being delayed and asked if they would still be completing the project on time.

Speaker, Michael Kiesling, gave three suggestions to help our upcoming shift in weekend service: 1) accept Caltrain monthly passes on SamTrans for trips that would otherwise be made on Caltrain during the weekend; 2) have directions on the web site explaining how to travel via bus from each train station; 3) SamTrans should relax its baggage rules on buses that serve SFO airport, since there won’t be any Caltrain service to SFO.

CONSENT CALENDAR

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

1. Adoption of Minutes of April 4, 2002 meeting
   
   
2. Statement of Revenue and Expense, March 2002
   
   

CHAIRPERSON'S REPORT

Chair Nevin noted that on Wednesday, May 15, San Francisco would recognize Director Ayerdi for the Unsung Hero Award for her work and effort on the Transbay Terminal. He congratulated Director Ayerdi for her work in San Francisco and the region on Caltrain and transportation in general.

MTC LIAISON REPORT

Sue Lempert reported that over 100 people attended the meeting on the Bay Crossing Study. Ms. Lempert explained that there was favorable support for the rail over the Dumbarton Bridge, but most of the discussion was regarding the approaches to the Dumbarton Bridge via car. The Bay Crossing Study will be making a recommendation sometime this summer to the full commission.

Ms. Lempert revealed the legislation for the merger of ABAG and MTC as another controversial area. Currently, MTC has not taken a position on this bill and ABAG is in opposition to it. Ms. Lempert commented that she is unsure of what Senator Torlakson will do, but believes it will go to a study committee between ABAG and MTC.

Ms. Lempert also mentioned the TransLink pilot program is working well. The program is currently working at nine Caltrain stations with plans to expand to all stations. Anyone interested in obtaining a TransLink card may call 1-877-878-8883. Director Burns commented he used his TransLink card on Caltrain and was very pleased with the results.

Director Schmidt made an observation and suggestion associated with the Bay Crossing Study meeting in Menlo Park. He noticed that the inventory list of potential problems associated with the Dumbarton Rail project was longer than the list for the Bay Front Expressway project. Mr. Schmidt expressed concern that this would foster misconceptions regarding the total environmental impact of one project compared to the other and clarification moving forward.

REPORT OF CITIZENS ADVISORY COMMITTEE (CAC)

Mike Rodriguez reported the CAC voted to let the Board make the decision to term members out upon re-appointment.

Second, Mr. Rodriguez expressed concern that Caltrain employees lack the appropriate information regarding the bus bridge and weekend closures. Mr. Rodriguez requested bringing Caltrain employees up-to-date on information regarding this subject to ensure they can answer customer questions.

He also asked that, in the future, the JPB consider a line item budget for the CAC so they can participate in transportation summits.

Ed De Lanoy, San Carlos, made comments regarding the upcoming construction leading to weekend shutdowns. He requested that the JPB adopt construction option C, which calls for full daily service up to 9 PM and shutdown thereafter, except for evening Giants service. Mr. De Lanoy explained that option C would least interfere with the objective of promoting habitual ridership.

Chair Nevin stated that he is sensitive to the request from the CAC for a line item budget and asked that they make note of beneficial events for future consideration.

David Miller advised that the board may consider the resolution before them for the approval of the amendment to the CAC bylaw. After some discussion, the Board by roll call, unanimously approved the resolution.

REPORT OF THE EXECUTIVE DIRECTOR

Executive Director Michael Scanlon reported average weekday ridership is down 8 percent from last March. The total revenue is down 12 percent due to less weekdays and spring break in March this year. On-time percentage continues to be at 97 percent. Caltrain shuttle ridership is off only 9.7 percent. Mr. Scanlon commented that traffic congestion and the price of gasoline would be key factors as Caltrain competes for customers in the Bay Area.

Mr. Scanlon, addressing questions from the public speakers mentioned that notice to proceed on the CTX will be given and the first weekend shutdown will not occur until Saturday, July 6. Caltrain riders would be given thorough information regarding the shutdowns and the bus substitutions during the shutdowns. Also, Mr. Scanlon mentioned the multi-transit trip-planning feature by MTC is up and running. Finally, he addressed Ed De Lanoy’s appeal for option C on the construction, by explaining that the contracts have already been awarded and to change course would be too expensive and time consuming.

Mr. Scanlon reported that on Friday, April 12, the Amtrak police arrested a suspect in San Tomas, who confessed to vandalism. There have been no repeat incidents in Santa Clara or Redwood City to date. They will continue with increased surveillance and security.

Mr. Scanlon announced that ridership to Pac Bell has been trending up, carrying well over 4,000 riders and approached 5,000 on several occasions. He thanked the ambassadors who worked, to greet the passengers and direct traffic.

Mr. Scanlon mentioned that on April 6, Caltrain did a joint promotion with SamTrans at Pac Bell Park, promoting safety on the railroad. Director Nevin threw out a strike for the first pitch.

Mr. Scanlon congratulated Director Valerio and Director McLemore for spending the day out on the Right of Way with Jerry Kirzner on Saturday, April 13 due to their interest in the CTX Project.

Mr. Scanlon mentioned several events that will be supported by Caltrain in the month of May including: 1) Saturday, May 11 – KFOG Kaboom Service; 2) Wednesday, May 15 – Operation LifeSaver; 3) Sunday, May 19 – Bay to Breakers; 4) Wednesday, May 29 – Kids Are Giants Too; 5) Monday, May 20 – Public Meetings will be held in all three counties in preparation for the upcoming schedule changes in late Summer, 2002.

Director Schmidt asked that Mr. Scanlon address the question regarding traveling with baggage from San Francisco to SFO during a shutdown. Mr. Scanlon said the issue can be further explored, but he is uncertain if an exception can be made due to a Federal regulation to minimize competition with private carriers.

Director Schmidt asked if there is an existing timetable for the San Bruno Station relocation. Howard Goode, Chief Development Officer, responded by stating that the contractor building the BART extension has an obligation to restore the San Bruno station to its original location by the conclusion of the project. He added that some prep work has been done on the original site and it should be restored by late Summer/early Fall.

APPROVAL OF INSURANCE PROGRAM FOR FY 2002-2003

Gary Lambert, Manager of Safety & Security, reported the insurance program remains the same as last year’s with some cost-saving initiatives. The liability program remains at $200,000,000 in coverage, with a premium increase of only 15 percent. Mr. Lambert remarked this is good considering, post September 11th, most companies have only been able to retain one-half of their original coverage at two to three times last year’s premium cost. He noted that staff is recommending the elimination of earthquake coverage to ensure cost-savings of $644,000. Mr. Lambert explained that the tracks run parallel to the fault line and that most of the transit agencies in California do not carry earthquake coverage due to its high cost.

Director Nevin commented that as more scientific information is uncovered, there is less support for maintaining earthquake coverage. Director Lloyd expressed his support for eliminating earthquake coverage and backed up his view by stating that little damage was done to the transit system during both Loma Prieta and the North Ridge Earthquake.

The resolution was unanimously approved by roll call.

OPERATING BUDGET

Roger Contreras, Chief Financial Officer, reported on challenging process of preparing the budget due to declining ridership and the economic slowdown effecting all the transit agencies in the bay area. The partners have asked that the same level of contributions for FY 2002 be maintained in FY 2003. This objective has been achieved with almost no impact to the riders.

Susan Stark, Director of Budget and Finance, made a presentation on the operating budget for FY 2003. Ms. Stark reported in spite of rising costs and declining ridership, they have been successful in holding the members’ contributions to zero increase for FY 2003. In FY 2003, ridership is anticipated to decline to 8.8 million, from 11.8 million in 2002, with farebox revenues decreased by $4.6 million. Ms. Stark remarked the decline is due to reduced average weekday ridership, suspension of weekend service, and the fare increases. To meet these challenges, staff is proposing a 1.6 percent reduction in the budget from 2002. She outlined the proposed cost cutting measures that will be implemented.

Chair Nevin asked for a more detailed explanation of the proposed shuttle service cuts from the 4th and King Street station and the dollar amount associated with them. Chuck Harvey, Chief Operating Officer, responded the budget assumes that the $600,000 subsidy, paid in the past to MUNI for the 80X shuttle routes, would be cut.

Director Valerio expressed concerns about the cuts and wanted to ensure they are not eliminating all services to certain areas. Mr. Harvey explained that the shuttle management team evaluates routes based on certain criteria. If the shuttles don’t meet the criteria, they look to reallocate those resources.

Director Ayerdi asked the status of the lease/leaseback idea. Mr. Contreras explained that there are no investors currently willing to pay the required benefits to move forward with this idea. Director Ayerdi asked if the Board of Equalization issue was resolved. Mr. Contreras affirmed that this issue was resolved.

Sue Lempert asked what the expenditure will be for the increased security. Mr. Contreras responded that the expenditure will be an additional $300,000 for this year.

Mark Helmbrecht, of the Presidio Trust, asked the Board to reconsider the idea to cut the express buses in San Francisco off the end of the Caltrain terminal, particularly the 82X coming out of the Presidio. He explained the 82X route is the only rapid transit connection from the Presidio to downtown regional transit centers.

Mr. Scanlon explained that the 82X is a fixed-route service operated by MUNI and subsidized by the JPB. Fixed route services operated by the other two partners, San Mateo and VTA, are not subsidized by the JPA.

Mr. Harvey communicated that MUNI, SamTrans, and VTA all operate their own fixed-route bus services that connect directly with Caltrain Stations. In all cases, there is no subsidy paid by the JPB to the three operators. Both SamTrans and VTA accept a Caltrain Zone 2 or larger monthly pass as a local fare credit for both the bus system and in case of VTA, the LRT system. MUNI does not honor the pass to do the same. Mr. Harvey explained that many people who sent correspondence requesting that the express shuttles be maintained don’t even get on from Caltrain. Mr. Harvey reported that most people ride the service in the morning, but not in the afternoon. This suggests that people are making transit choices in the afternoon and that they can get to the station and ride the service without the express shuttles. There are other options to get to the Presidio, local lines 30 and 45, that connect with the 28. Mr. Harvey remarked that bus routes extended by MUNI to Levi Plaza in the Presidio would not be covered under the subsidy.

Director Burns stated that the subsidy JPB provides for the shuttles covers the net cost of service to MUNI and that MUNI does not believe they are receiving the revenue over and above these costs. Mr. Burns informed the board that if the operating budget were approved, MUNI would be forced to cut the express shuttle services because they are not in the position to pick up the costs.

Richard Mlynarik, San Francisco, commented that most of the shuttles that serve Caltrain stations are not well allocated. He encourages MUNI and Caltrain to look at other ways of allocating resources to provide the same level of service at a lower cost.

Director Schmidt asked what the cost savings would be with the reduction of trains from 80 to 76 and in cutting the 82X service. Mr. Harvey responded the savings for the subsidy paid to MUNI for the express shuttles is $600,000. In addition, reducing the trains from 80 to 76 would save approximately $500,000.

Director Burns moved to keep the $600,000 out of the action today and reconsider the options over the next 30 days, recognizing that Caltrain has a budget problem. Director Burns stated that he does not want to postpone a vote on the overall budget.

David Miller suggested board adoption of the budget with the amendment that staff would come back next month with possible alternatives relative to retaining some or all of the service and consider appropriate budget adjustments at that time.

The resolution was amended and unanimously approved by roll call.

QUARTERLY ELECTRIFICATION REPORT

Liz Wiecha, Director of Capital Project Management, briefly reported on the status of the Electrification project. She mentioned that staff would be sending the administrative draft for the environmental document to the member agencies for review prior to submitting it to the FTA. In addition, staff has a meeting scheduled for late May with the PG&E Real Estate Group to look at various issues. She also outlined the work already completed and in-progress.

Vaughn Wolffe, Pleasanton, asked why 2014 and 2020 are the selected dates for the simulations and if the level of service is tied to ridership. He suggested it would be a mistake to run service while waiting for the ridership to turn up and wants to know what the triggers are for these levels of service.

QUARTERLY STATUS REPORT

Liz Wiecha presented the Quarterly Capital Programs Status Report for January – March 2002. She reported the notice to proceed for the CTX North Project is scheduled for June 1, 2002, with the end of construction scheduled for May 2004. Weekend closures are scheduled to begin July 6th and Baby Bullet service is anticipated late in 2003. Ms. Wiecha referred to an article in the Engineering News Record as an example of other transit agencies, such as Chicago Transit Authority, utilizing similar methods as elected for the North and South CTX construction contracts.

Ms. Wiecha reported that the North and South CTX contracts would complete the segment of CTC territory from Bayshore to Santa Clara, including track rehabilitation. They anticipate the CTX South contract to be advertised in June, with bids opening in September and the award of contract and notice to proceed occurring in the fall. The construction for the South CTX project is scheduled for completion by March 2004.

Director Ayerdi asked what is triggering the 2008, 2014, and 2020 dates in regards to the electrification project. Ms. Wiecha explained that the information is with respect to the levels of service anticipated at those particular milestones. 2008 is the scheduled revenue service date and when Caltrain will open the electrification service. 2014 and 2020 are long-range predictions of increases in levels of service. Ms. Wiecha stated that staff is conducting several scenarios to ensure that the concerns of the utility providers, with respect to unbalance loads on the grid, are addressed.

REPORT OF LEGAL COUNSEL

The meeting adjourned into closed session at 11:45 a.m. to follow up on real estate negotiations.

David Miller stated that the closed session is a matter of the real estate negotiations listed on the agenda as Closed Session Pursuant to Government Code Section 54956.8: Property Location and Owner: Clay Del Secco and Carol Del Secco, Trustees of the Del Secco Revocable Trust and the Trustees of the Iverson Family Irrevocable Trust, 4000 Campbell Avenue, Menlo Park. Under Negotiation: Price and terms of lease.

The meeting convened into open session at 11:55 a.m.

David Miller stated that the Board met in closed session as it is permitted to do under the Brown Act and have a proposal to authorize the execution of a three-year lease for rental of property located at 4000 Campbell Avenue in Menlo Park for JPB related construction support purposes.

The resolution was unanimously approved by roll call.

Next meeting is scheduled for June 6, 2002 at 1250 San Carlos Avenue.

ADJOURNED: 12:00 p.m.