MEMBERS PRESENT: John McLemore (Chair), Michael Burns, Don Gage, Jim Hartnett (Arrived 10:25 a.m.), Arthur Lloyd, Michael Nevin, Ken Yeager (arrived
10:15 a.m.)

MEMBERS ABSENT: Sophie Maxwell

MTC LIASON: Sue Lempert

STAFF PRESENT: Michael Scanlon, David Miller, Roger Contreras, Howard Goode, Chuck Harvey, Rita Haskin, George Cameron, Ian McAvoy, Cheryl Cavitt, Susan Stark, Martha Martinez, Jennifer Buhr

Chair McLemore called the meeting at 10:00 a.m. and led the Pledge of Allegiance to the flag.

PUBLIC COMMENT

Ed DeLanoy, reported that he attended a reception at SFO a few weeks ago.

Vaughn Wolffe requested that there be a discussion or summit regarding the proposed future changes of Caltrain including the schedule and upgrades. Particularly, he is interested in a discussion on level boarding.

Jeff Carter, Burlingame, commented that he reviewed the revised Caltrain schedule and was glad to see that there will be a shuttle bus between Tamien and San Jose on the weekends.

CONSENT CALENDAR

The Board unanimously approved the following items under the Consent Calendar:

1. Adoption of Minutes of April 1, 2004
2. Statement of Revenue & Expenses, March 2004

CHAIRPERSON'S REPORT

Chair McLemore reported:

• The week-long Safety Campaign began Monday, April 3 at the Santa Clara station.
• The JPB had a unanimous vote in favor of certifying the Transbay Terminal EIR at the joint meeting with the San Francisco Planning Commission.
• Commended Ian McAvoy for meeting with the north cities of Santa Clara County to discuss electrification plans and other Caltrain improvement plans in order to educate the city council members.

MTC LIAISON REPORT (SUE LEMPERT)

Ms. Lempert was not present.

Director Nevin commented that the MTC unanimously supported the reauthorization of Measure A.

REPORT OF CITIZENS ADVISORY COMMITTEE (CAC)

Bruce Balshone reported on the last CAC meeting:

• Maria Ayerdi made a presentation at its last meeting pertaining to the Transbay Terminal. A resolution in support of the project was adopted.

REPORT OF THE EXECUTIVE DIRECTOR

Michael J. Scanlon reported:

• Key Caltrain Performance Statistics:
1. March total ridership went from 696,560 to 868,660 riders, a 1.4 percent decrease.
2. March average weekday ridership was down 7.8 percent, from 28,129 weekday riders to 25,941.
3. March total revenue was off 7.0 percent from $1.69 million to $1.57 million.
4. On-time Performance decreased 13.4 percent with 82.6 percent for March.
5. March shuttle ridership had a decrease of 13.5 percent with 3,497 riders, down from 4,044.
• The primary findings of the on-board passenger counts were available within the Performance Statistics staff report. Three significant differences from last March included the restructuring of the zones and fare changes, the opening of BART at Millbrae and the completion of significant highway improvements and capacity in southern Santa Clara County.
• Weekend service will resume June 5. Baby Bullet service will begin June 7. Staff initiated an internal Haiku contest, which is building suspense for the Baby Bullet kick-off and is allowing for effective communication.
• Gas prices are rising which could appeal new ridership. However, the rising prices are particularly difficult for the Caltrain budget.
• Commended all that worked on putting together the FY 2005 Operating budget. In order to put out the best service possible, some significant one-time funds were used. There is hope to grow the system and the ridership.
• The Capital budget was pulled from the agenda due to further discussions among all three JPB partners.
• The first wrapped train was in revenue service today. Rita Haskin, Chief Communications Officer, presented several pictures of the wrapped train. She reported that there was media coverage of the May 5 unveiling at 4th and King.

Ms. Haskin responded that Viacom, the contractor, is aware that any graffiti or damages will need to be repaired promptly.

Director Burns asked what company was represented on the wrap.

Ms. Haskin clarified that the wrap promoted the various lines of products that Target carries.

Mr. Scanlon reiterated that this is a one-year pilot program with a maximum of three trains.

Mr. Scanlon further reported:

• There were four public meetings (San Francisco, San Mateo and two in Santa Clara County) regarding electrification. Staff is seeking public comment on the draft EIR for the electrification program.
• Baseball service began on April 1. Caltrain is attracting excess of 3000 riders per game. There is also anticipation to carry riders to San Jose for an extended hockey season.
• The Monthly Safety and Security Report was distributed. Highlighted was that Caltrain was honored with the Award of Distinction for the video production Caltrain Safety at the annual conference of California Association of Public Information Officials.

Director Yeager complimented staff for their outreach with the customers, the free service for the first two weeks and for the entire program.

Chair McLemore requested staff to conduct the same presentation at the June VTA board meeting.

Director Burns questioned what the status was pertaining to the action to proceed with the Lease/Leaseback action from a past meeting.

Roger Contreras, Chief Financial Officer, responded that the item that was brought before the board, the lease/leaseback of new rail equipment, is still on hold. Staff sent some letters to ensure the likelihood of grandparenting this deal together with other pending deals.

Mr. Scanlon commented that the JPB did send a letter asking to be considered in the grandparenting line. In Washington, those involved with leases are lobbying very hard to keep leases inbounds. Mr. Scanlon stated that even if this does become outlawed under Federal tax policy, there still may be opportunity with cross bordering depending on what tax authorities do in other countries. Baby Bullet was 100 percent State money because Senator Speier was able to include the project within the Transportation Congestion Relief Program.

Director Burns stated that since the project was State funded, he thought perhaps there was a window of opportunity where there wouldn't be a requirement for FTA approval. However, it appears that the implications of the Federal law overall is what has stalled it.

Mr. Scanlon confirmed that people in the market don't want to take the risk because they are afraid that if something comes out, the tax policy would be retroactive. Mr. Scanlon stated that the JPB is also not willing to take the risk.

Mr. Contreras reported that there are lease/leaseback proceeds to be used to fund some of the activities in the operating budget. However, he noted that these are the last of the funds that are already available in the bank.

Vaughn Wolffe commented that there could be a sensitive issue with regard to the trade-off of ridership between Caltrain and BART riders at the Millbrae station as Caltrain continues to be improved and cost less. In regard to the Dumbarton service, one of the plans is to stop at Millbrae to attempt to get riders onto BART. However, Mr. Wolffe suggested having an express to San Francisco to keep the rider on Caltrain. Mr. Wolffe also commented that Santa Clara makes up 50 percent of the mileage so they will continually be paying a greater portion, which is currently a problem for them and is projected to continue to be a problem for them. Mr. Wolffe stated that he is enlightened to see how the JPB will try to work out these problems.

Jeff Carter noted that the wrapped train would be passing San Carlos Station at 11:42 a.m. today. He also thanked staff for running free service for the first two weeks and suggested having a $5 weekend pass. Mr. Carter also commented that there is still confusion with people calling Caltrain, Caltrans. In regards to the holiday services listed on the new timetable, Mr. Carter stated having service only every hour, versus the traditional service of every half hour, will not be sufficient for the large passenger loads. Lastly, Mr. Carter commented that he has observed people getting off of Caltrain and getting onto BART at Millbrae in the morning yet, these same people ride Caltrain southbound all the way home in the afternoon.

Norman Rolfe questioned how well can riders see out the window of the wrapped train. He pointed out that Muni has wraps over its window and passengers can can't see out them very well. Mr. Rolffe expressed concern with the wraps over the windows because one of the attractions of riding the train is that you can see out the window.

Mr. Scanlon reiterated that the wrapped trains are a pilot program with a maximum of three trains. He also noted that the material was put over the several trains and we sought input. In general, people were not offended by the wrap on the windows. He also commented that the value of the wrap compared to revenue is substantially higher when the wrap covers the entire train, including the windows.

Mr. Scanlon also commented that in regards to the BART and Caltrain, Millbrae is a station that is about giving passengers choices to ride at a competitive price. He also commented that he would like to see a shared pass so that riders can use SamTrans, BART or Caltrain so that customers can use what works best for them wherever their destination is.

DISTRIBUTION OF FY2005 OPERATING BUDGET

Susan Stark, Director of Finance and Budget, gave a PowerPoint presentation in regard to the FY2005 proposed Operating Budget. This item was presented for informational use only and no action was taken. In general, staff's budget recommendation for FY2005 was designed to support a service level increase from 76 to 86 weekday trains, including a full year of Baby Bullet (10 daily trains), resumption of weekend service after a two-year hiatus, baseball service and shuttle service changes. Gilroy service would remain unchanged. Elements of the proposal included, a Caltrain Operating Budget of $74,889,880 for FY 2005, member agency contributions of $35,758,570, increased ridership contributing to a $3 million improvement in fare revenues, a total Capital Contingency Fund of $1,010,000 and a suspension of the Farebox Capital Set Aside, which totals $1,128,000 for the current year. Ms. Stark reported that staff would be contacting each board member to respond to any questions or to set up individual meetings at their convenience.

Director Lloyd questioned if there was any revenue from Union Pacific for the operation of the Broadway and Mission Bay freight trains.

Mr. Contreras responded that the trackage rights equate to a total amount of $800,000, which is included in the budget.

Director Gage questioned what the JPB's plan was in regard to the issue of rising fuel prices.

Mr. Contreras responded that the staff will be making modifications to the budget either through budget cuts or through identifying other revenue sources.

Mr. Scanlon commented that the JPB will probably run significantly over the gas budget for the first few months. Experts are saying that gas prices will be coming down after the November election. Staff knows that the JPB has to remain within budget so if the fuel prices don't come down, something else will have to come down from the budget.

Director Burns stated that the JPB will have to monitor the service levels and budget items early on so that the JPB is not in trouble at the beginning of FY2006 since there was so much one-time revenues for FY2005. With regard to the Ticket Vending Machines, he questioned who would be conducting the maintenance.

Mr. Scanlon responded that the maintenance is being brought in-house.

DISTRIBUTION OF FY2005 CAPITAL BUDGET

This item was pulled from the agenda and was continued to next month.

ADOPTION OF REVISED DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM AND PROPOSED DBE OVERALL ANNUAL GOAL FOR FY 2004-2005

Raymond Lee, DBE Officer, reported that the DBE Review Committee recommends that the board adopt the revised DBE Program and to authorize the Executive Director to execute the proposed DBE overall goal for the next fiscal year. The JPB revised the DBE Program to conform with regulatory changes issued by the U.S. Department of Transportation last July. The DBE overall goals are 11.5 percent for Federal Transit Administration (FTA) assisted contracts and 12 percent for Federal Highway Administration (FHWA) assisted contracts for public inspection and comment. The recommended goals were analyzed and developed in accordance with described Federal methodologies, which included a public meeting held in April, a detailed review of the relevant availability of DBE's for the pertinent type of works that is anticipated by the JPB. In addition, the JPB is required to publish the proposed goals to allow the public an opportunity to review the methodologies and give time to comment. Accordingly, the DBE Review Committee is recommending approval to publish the proposed goals and in the event that there are no comments that require a change to the proposed goals, authorize the Executive Director to submit the DBE overall annual goals to the FTA and FHWA by the designated deadline of August 1, 2004.

Director Gage questioned if the Homeland Security play into the DBE program with new regulations.

Mr. Lee responded that there is not a direct play.

The motion to approve the Adoption of the Revised Disadvantaged Business Enterprise (DBE) Program and Proposed DBE Overall Annual Goal for FY 2005 passed unanimously, by roll call, and Resolution 2004-15 was adopted.

AUTHORIZATION TO EXECUTE A CHANGE ORDER TO THE CONTRACT WITH WILLIAM P. YOUNG CONSTRUCTION, INC. IN AN AMOUNT NOT-TO-EXCEED $75,000 FOR INSTALLATION OF A MINI-HIGH PLATFORM AT THE HILLSDALE STATION

Cheryl Cavitt, Director of Contracts and Procurement, reported that the Staff Coordinating Council recommends that the board approve authorization for the Executive Director to execute a change order to the subject contract with William P. Young Construction, Inc. in an amount not-to-exceed $75,000 for installation of an accessible ramp at the Hillsdale Station.

The contract for installation of mini-high platforms was awarded at the December 2003 meeting, providing for platforms at Millbrae, Palo Alto, and Mountain View stations. At the time, it was anticipated that the platform at Hillsdale would be installed as part of a large stations improvement contract. However, to facilitate the Baby Bullet requirements, the installation must be completed sooner.

The motion to adopt the subject resolution passed unanimously, by roll call, and Resolution 2004-14 was adopted.

AWARD OF ON-CALL PEOPLESOFT CONSULTANT SUPPORT SERVICES CONTRACTS

Cheryl Cavitt, Director of Contracts and Procurement, reported that the Staff Coordinating Council recommends that the board approve award of three on-call contracts for Peoplesoft consultant support services for a two-year base period for an aggregate not-to-exceed cost of $200,000 to AG Consulting, Booz-Allen & Hamilton Inc., and F.S. Systems, Inc., authorize the Executive Director to execute the contracts with the above firms in full conformity with the terms and conditions set forth in the contract documents and to exercise up to three one-year options with an aggregate not-to-exceed cost of $100,000 for each year, if it is determined in the best interest of the JPB.

The services will be used for developing capital program management, implementation of Peoplesoft modules, functionality implementations, system upgrades, workflows and other various tasks.

The motion to approve the subject resolution passed unanimously, by roll call, and Resolution 2004-13 was adopted.

AWARD OF TUNNEL REHABILITATION PROJECT CONTRACT TO DRILL TECH DRILLING & SHORING, INC.

Cheryl Cavitt, Director of Contracts and Procurement, reported that the Staff Coordinating Council recommends that the board award the subject contract to the lowest, responsive and responsible bidder, Drill Tech Drilling & Shoring, Inc. of Antioch, for $5,951,750, authorize the Executive Director to execute a contract in full conformity with the terms and conditions of the solicitation documents and to exercise a contract bid option for a total amount of $1,911,200, contingent on approved funding in the FY2005 capital budget.

The recommended award calls for Drill Tech Drilling & Shoring, Inc, to furnish all materials, labor, tools, plants, supplies, equipment, transportation, and project management to perform the tunnel rehabilitation contract requirements. The tunnels that will need rehabilitation are located in San Francisco County. Investigation shows that there are voids behind the arch liner that require grouting in most of the tunnels; arch liner cracks require repair; and water seepage must be controlled. The bid option that is called for will cover seismic upgrade work on one of the tunnels as soon as the funding can be identified.

Mark Duran commented that the staff report indicated that the tunnels are renowned for the way they withstood the 1906 earthquake. However, Mr. Duran noted that the Tunnel 2 collapsed during the earthquake. Additionally, he stated that there are two tunnels, one of which hasn't been used for the past 100 years, which may be prudent to inspect the second tunnel to make sure there is no possibility of collapse that may cause damage to the buildings above.

Richard Mlynarik stated that once again, the engineer's estimates and the lowest responsible bidder came in very close, which shows that the JPB staff has been consistently good with the engineer's estimates.

The motion to approve the subject resolution passed unanimously, by roll call, and Resolution 2004-12 was adopted.

CALTRAIN WEEKDAY AND WEEKEND SERVICE PROMOTIONS PLAN

This item was presented under the Executive Director's Report.

REPORT OF LEGAL COUNSEL

None.

CORRESPONDENCE

Previously distributed.

DATE/TIME OF NEXT MEETING

Thursday, June 3, 2004, 10 a.m. at the San Mateo County Transit District Administrative Building, 1250 San Carlos Avenue, San Carlos, CA 94070.

ADJOURNED

Meeting adjourned at 11:21 a.m.