PENINSULA CORRIDOR JOINT POWERS BOARD
Minutes
Thursday, July 7, 2005 at 10:00 a.m.
MEMBERS PRESENT: Michael Burns (11:10 a.m.), José Cisneros, Don Gage,Jim Hartnett, Arthur Lloyd, John McLemore, Sophie Maxwell, Michael Nevin, Ken Yeager
MEMBERS ABSENT: None
MTC LIAISON
ABSENT: Sue Lempert
STAFF PRESENT: George Cameron, April Chan, Rita Haskin,
Gigi Harrington, Chuck Harvey, Jennifer Hardie, Ian McAvoy, Martha Martinez, David Miller, Mark Simon
Chair Nevin called the meeting to order at
10:08 a.m. and Howard Goode led the Pledge of Allegiance.
PUBLIC COMMENT
Jeff Carter, Burlingame, said a number of conductors have expressed
concern when writing a citation to passengers riding without a
ticket because of assault threats.
Michael Scanlon, Executive Director, said staff will educate the
conductors who the security officials are.
Bill Pedrini, Chief of Protective Services, said security officials
rigorously investigate any reports of attempted assaults on
conductors.
Mr. Scanlon said there was one assault and the person was
apprehended and convicted. Statistical data on citations are
included in the monthly Safety and Security Report.
Ed DeLanoy, San Carlos, said he has noticed that many times there
are empty cars on a five car consist and he urged the Board to
consider operating three car trains to save fuel and improved
homeland security.
Mr. Scanlon responded that there is a combination of four car and
five car consists currently operating.
CONSENT CALENDAR
The Board
unanimously approved the following items under the Consent Calendar:
MTC Liaison Report
No report this
month.
REPORT OF THE CITIZENS ADVISORY COMMITTEE (CAC)
Brian Wilfley, chair of the JPB CAC, reported there was a
presentation on Project 2025 given by Robert Doty, Director of Rail
Transportation. The next CAC meeting will be held at the Santa
Clara Depot on July 20.
REPORT OF THE EXECUTIVE DIRECTOR
Michael Scanlon, Executive Director, reported:
·
Due to the recent incidents in London, security
officials are sweeping the building, stations and the right-of-way
to ensure safety for customers and staff.
·
Performance Statistics for May 2005
a)
Average Weekday Ridership was up 15 percent, from 28,112
riders to 32,322.
b)
Total Ridership was up 25.8 percent from 681,731 riders to
857,438.
c)
Total Revenue was up 33.7 percent from $1.6 million to $2.1
million.
d)
On-Time Performance was up 7.5 percent from 89.6 percent to
96.3 percent.
e)
Shuttle Ridership was up 7.3 percent from 4,239 riders to
4,548.
·
Ridership to SBC Park for the Giants baseball games
continues to be up. Mr. Scanlon noted that there would be an alcohol
ban onboard the trains on game nights, which will hopefully lower
the number of problems with rowdy intoxicated riders.
·
Over 2,000 people rode Caltrain to San Francisco for
the firework show on Independence Day.
·
The Safety and Security report was distributed.
·
The Romance on the Rails event was very successful.
There was international media coverage on the story.
·
The first of two approved fare increases was
implemented on July 1. The 17.5 percent increase transition seems to
be going very smoothly.
·
Staff is preparing to implement the new 96-train
schedule on August 1.
·
Fuel prices continue to be a burden on the budget.
Rita Haskin, Chief Communications Officer, showed a commercial that
ran on cable television June 12 through July 1 in an attempt to get
people out of their cars and to try transit.
·
The Walk and Roll promotion kick-off will be held at
the San Carlos train station on July 11. Walk and Roll is a
partnership of Caltrain, SamTrans, San Francisco Muni, the Santa
Clara Valley Transportation Authority, the Peninsula Traffic
Congestion Relief Alliance, Sequoia Hospital, and the American Heart
Association – San Mateo County chapter. Forty-five transit users who
regularly walk to or from train stations and bus stops are using
pedometers to see how walking in combination with transit can help
commuters toward a goal of accumulating 10,000 steps a day.
·
Comcast cable service made a commercial to highlight
how their internet service is as high speed as the Baby Bullet
service.
Approval
and ratification of THE FY2006 INSURANCE PROGRAM
Gary Lambert, Manager of Risk Management, said
Staff Coordinating Council (SCC) recommends and submits for approval
and ratification the Caltrain insurance program for
FY 2006 at a premium figure within the
parameters of the FY 2006 Operating Budget including, purchase of
$200 million of coverage for Railroad Liability, Commercial General
Liability and Excess Automobile Liability at an annual premium of
$1,966,000; continuation of the current
$2 million self-insured retention on the
liability program; the purchase of two types of property insurance
at a total annual premium of $638,000 including Special Risk
property policies with limits of $50 million that cover real and
personal property, rolling stock, tunnels, bridges, culverts,
signals and railroad equipment, and a Boiler and Machinery policy
sufficient to meet the State of California inspection requirements.
The motion to approve and ratify the FY2006
Insurance Program was unanimously approved and Resolution 2005-35
was adopted.
adoption of the FY2006 capital budget
April Chan, Director of Capital Program
Support, said at the June 2, 2005 Board meeting, staff presented the
proposed FY 2006 Caltrain Capital Budget as an informational item.
The proposed budget includes new and ongoing infrastructure
improvements consistent with the guidance set forth in the adopted
Caltrain Strategic Plan and the Short Range Transit Plan.
Ms. Chan said the proposed FY 2006 Capital
Budget is $77,598,849. It includes Federal, State, and other grant
funding of $57,952,343 and local match requirement of $6,684,727.
Per-Member local match requirement is $2,228,242. Additional
amounts of $500,000 (San Francisco), $11,650,000 (San Mateo) and
$811,779 (Santa Clara) are required to fund county-specific station
and access improvements.
The motion to approve the FY2006 Capital Budget
was unanimously approved and Resolution 2005-36 was adopted.
Virginia Harrington, Chief Financial Officer,
said Staff Coordinating Council (SCC) recommends that the Board
consider the establishment of a “reserve for Operations” set at 10
percent of the annual operating expenditure budget to be funded from
surplus revenues as they are generated over time. The Government
Finance Officers Association (GFOA) recommends that governments
target their reserve levels to a minimum of 5 to 15 percent of
annual operating budgets. This item was presented for informational
purposes only and the item will be brought back to the Board for
action at an upcoming meeting.
Ms. Chan said that
Staff Coordinating Council (SCC) recommends Board authorization for
the Executive Director to file three discretionary grant
applications for Transportation Fund for Clean Air (TFCA) regional
funds in a total amount of $1,368,109 to support the Caltrain
Shuttle Program and to execute funding agreements with the Bay Area
Air Quality Management District (BAAQMD) if the applications are
awarded funding. The proposed applications contain operating support
for the continuation of the existing Caltrain Commuter Shuttle
Program in the amount of $1,250,000; operating support for the
existing Caltrain Tamien Weekend Shuttle in the amount of $26,442;
and operating Support for the new Broadway and Atherton shuttles in
the amount of $91,667.
Director Gage
asked if there was any advertising done on the shuttles.
Mr. Scanlon
replied that there is currently not any advertising on the shuttles
at this time. However, staff will evaluate the option of having
advertising to help generate revenue.
Richard Mlynarik,
San Francisco, said this is a good program; however, it is expensive
to operate and there may less costly ways to get riders to the
train.
The motion to authorize the filing of the TFCA
applications was unanimously approved and Resolution 2005-34 was
adopted.
Ian McAvoy, Chief Development Officer, said
that by request of Director Gage, Staff Coordinating Council
recommends that the Board reaffirm its support for High Speed Rail
from Los Angeles to San Francisco through San Jose utilizing the
Peninsula Rail Corridor, and that the Board consider endorsing the
principles promulgated by the Silicon Valley High-Speed Rail
Coalition.
The Silicon Valley High-Speed Rail Coalition,
an affiliation of Santa Clara County business, labor and civic
organizations and elected officials, has been formed to advocate for
the selection by the HSRA of an alignment through Pacheco Pass east
of Gilroy.
The Pacheco Pass alignment would direct the
high-speed rail service through San Jose and up the Peninsula Rail
Corridor. The Altamont Pass alignment would limit service to San
Jose via a spur line only. High Speed Rail would connect to the
Peninsula Rail Corridor somewhere in the mid-Peninsula. Endorsement
of the Coalition principles would put the JPB on record specifically
in support of the Pacheco Pass alignment.
In September 2004, the HSRA announced it would
conduct further studies of the environmental impact of all
alignments connecting the Central Valley and the Bay Area, including
both the Pacheco Pass and Altamont Pass alignments. That study is
scheduled to be completed in March 2006.
Caltrain Development and Operations staff, in
keeping with previous positions by this Board in support of High
Speed Rail, state that the Pacheco Pass alignment holds the
potential for greater benefit for Caltrain. Those benefits include
the possibility of expediting Caltrain’s efforts to grade separate
and electrify the rail system.
John Carpenter, Mountain View, said he supports
the Pacheco Pass alignment because of transfer services between the
local airports and because it has proper interconnectivity for high
speed rail and regional rail services.
James Janz, Town of Atherton City Council, said
studies are yet to be done and Caltrain should be active in the
research process but the Board should not take a formal action to
support either alignment at this time.
Patrick Moore, Mountain View, submitted a
letter from the Sierra Club, which requested that the Board not take
action until the Altamont alignment study has been completed. Mr.
Moore said the Sierra Club does not support any alignment that would
go through land of critical habitat.
Brian Stanke, Hayward, said it is too early for
this Board to take action on this item before the studies are
complete. He said the studies need to be completed so that the
alignment that best supports regional connectivity can be selected.
Rosemary Maulbetsch, Atherton, said the Pacheco
Pass route is not environmentally friendly and many trees would need
to be removed for the alignment. She said the Altamont alignment
should be considered after the study is completed.
Vaughn Wolffe, representing RailPAC, said the
decision of the alignment should be made on a technical basis and
not political.
Richard Mlynarik, San Francisco, urged the
Board to support the continuation of the studies so that the best
alignment from regional perspective can be selected. He agreed that
this action should not be based on politics.
Margaret Okuzumi, representing Bay Rail
Alliance, urged the Board to refrain from taking action on the
alignment until all the studies have been completed, including all
the negative environmental impacts.
Jim Bigelow, Redwood City/San Mateo County
Chamber, said Redwood City will be affected by either alignment and
have joined the coalition for high speed rail favoring the Pacheco
Pass with the revised Guiding Principles. He urged the Board to also
support the Pacheco Pass alignment.
Brian Wilfley, representing the JPB Citizens
Advisory Committee, said he would appreciate the opportunity to
bring this item to CAC so that the Committee can review the status
of the project and make a formal recommendation at the next Board
meeting.
Norman Rolfe, San Francisco, urged the Board to
wait until the studies have been completed before taking an action
for either alignment so that a reasonable decision can be made.
David Schonbrunn, Mill Valley, urged the Board
to refrain from action until the technical analysis of the both
alignments are completed. He agrees that this should not be a
political decision and Caltrain needs to review the studies before
taking an action.
Michael Kiesling, San Francisco, said if high
speed rail runs through San Jose, peninsula Caltrain service will
not receive any money for improvements because of Baby Bullet and
BART service.
Dean Chu, Mayor of Sunnyvale, urged the Board
to join the Silicon Valley High Speed Rail Coalition and support the
Pacheco Pass alignment and Guiding Principles because the Pacheco
Pass is the only alignment that fully supports the long term capital
expenditure goals.
Jeff Carter, Burlingame, said he supports high
speed rail going to San Francisco, San Jose and Oakland; however, he
thinks the item should go to the CAC for consideration before a
formal action is taken.
Director Lloyd said he is in favor of high
speed rail and he agreed that the CAC should have an opportunity to
discuss the matter and report back at a subsequent meeting. He said
he would also like to have more time to review the project further
before taking a vote.
Director McLemore said on three separate
occasions, the Caltrain Board has already unanimously supported the
Pacheco Pass alignment and will most likely continue to support that
position. Procedurally, he said the CAC should be able to review the
project and report back to the Board. He said MTC is also on record
supporting the Pacheco Pass.
Chair Nevin said it’s disappointing that the
legislature is holding off with the high speed rail bond until 2008.
Director Hartnett agreed that the CAC should be
able to review the project and report back to the Board. Given that
Caltrain has already supported the Pacheco Pass alignment, he doubts
the Board would change its position for high speed rail but
nevertheless, he would like to review the results of the study of
the Altamont alignment. He said if high speed rail comes through the
peninsula, the rail corridor and surrounding communities need to be
respected with the impact of construction and operation and he would
like that issue to be addressed in the Guiding Principles.
Director Gage clarified that he didn’t request
this item be brought to the Board solely for political reasons. As
people continue to move farther south, there will need to be transit
service for those south of San Jose. He said this item was for
endorsement of the Guiding Principles and not the alignment itself.
To allow time for the CAC to review, this item
was unanimously tabled by motion. The CAC will report back at the
September meeting.
Memorandum of understanding with metropolitan transportation
commission and Bay area rapid transit district for regional rail
study
Howard Goode, Project Manager, said staff
recommends that the Executive Director be authorized to enter into a
Memorandum of Understanding (MOU) with the Metropolitan
Transportation Committee (MTC) and the San Francisco Bay Area Rapid
Transit District (BART) for the purpose of preparing a Regional Rail
Plan, subject to the adoption of MTC Resolution No. 3707.
The JPB is designated as a member of the
Steering Committee for the preparation of the Regional Rail Plan
(Plan) under the provisions of Regional Measure 2, approved in March
2004. The Steering Committee consists of appointees from various
entities that have transit responsibilities in the Bay Area and is
charged with guiding the development of the Plan. JPB is also
designated as a member of the Management Team, along with MTC, BART
and the California High Speed Rail Authority (CHSRA) to manage the
work effort to prepare the Plan. The MOU has been drafted to
document the roles and responsibilities of the JPB, BART and MTC in
the preparation of the Plan. The MOU confirms the JPB’s significant
role in the preparation of the Plan, as both a member of the
Management Team and the larger, oversight group, the Steering
Committee.
Richard Mlynarik, San Francisco, said he is in
support of this study and thinks very useful information will be the
result of the study provided staff is not undercut with political
decision making.
John Carpenter, Mountain View, said he
supports the Regional Rail Study. He said MTC needs to address the
intermediate 110 mile per hour rail service.
Norman Rolfe, San Francisco, said he also
supports the Regional Rail Study and suggested looking at
international systems as examples for regional connectivity. He said
the study should maximize service with minimal costs that is fair
for all counties.
The motion to enter into a MOU with MTC and
BART for the Regional Rail Study was unanimously approved, by roll
call, and Resolution 2005-37.
Authorization to terminate Safe Harbor Lease Encumbering Rolling
Stock; Rejection of bids for sale of surplus rolling stock; and
authorization to award surplus rolling stock to Grand Canyon
Railways, Inc.
Virginia Harrington, Chief Financial Officer,
said Staff Coordinating Council (SCC) recommends that the Board
authorize the Executive Director or his designee to authorize
actions to terminate the Safe Harbor Lease
pertaining to certain surplus rolling stock and spare parts.
Place the termination costs in a segregated
account; appropriate sufficient funds from the sale of the surplus
rolling stock to cover the costs of terminating the Safe Harbor
Lease, including fees to special lease counsel and tax counsel for
advice to the JPB regarding the termination of the lease, in the
estimated amount of $112,657; reject the
initial bids received from both bidders, Grand Canyon Railways, Inc.
and IFE Leasing, Inc.; and authorize award of a contract for sale of
the Budd cars and spare parts to Grand Canyon Railways, Inc. at its
best and final offer price, under the terms and conditions of the
solicitation.
Approval of the above actions will position
the JPB to dispose of surplus rolling stock consisting of 12 1952
Budd passenger trailers, two 1952 Budd cab control cars and one lot
of spare parts no longer viable for revenue service. Termination of
the Safe Harbor Lease covering this rolling stock will allow the JPB
the flexibility to sell the rolling stock to non-governmental
entities without incurring risks associated with indemnifying the
lessor against tax liabilities.
Based on the advice
of special counsel, staff has endeavored to identify the current
lessor in the Safe Harbor Lease transaction. Staff has been able to
identify three possible entities who might be the lessor in this
transaction. The original lessor has been sold and renamed multiple
times since 1982. Staff has been unable to determine which of the
three entities identified might be the holder of the lease despite
efforts to do so, including direct communication with each possible
lessor. Upon the advice of special counsel, staff is recommending
the JPB authorize the Executive Director to place the termination
fee in a segregated account to expire on December 31, 2009, and to
notify the possible holders of the lease of such action. Special
counsel has prepared a memo which outlines this process and how the
risks associated are minimized. This is designed to mitigate the
indemnification the JPB made when the lease was assigned to the JPB
in 2001, when the JPB agreed to indemnify the lessor for any
negative tax consequences that may result from any subsequent
assignment of the lease. By virtue of this indemnification, the JPB,
not any of the potential purchasers of the equipment, is obligated
to ensure that the lessor is held harmless for tax purposes when the
lease is transferred.
The motion to authorize the termination of the
Safe Harbor lease and rejection of the bids for sale of surplus
rolling stock and to award surplus rolling stock to Grand Canyon
Railways, Inc. was unanimously supported, by roll call, and
Resolution 2005-38 was adopted.
CORRESPONDENCE
Previously distributed.
ADJOURNED
Meeting adjourned at 11:45 a.m. |
