P L A N N I N G & D E V E L O P M E N T C O M M I T T E E S E P T E M B E R

Transcription

1 BOARD OF DIRECTORS J U N E 1 0,

2 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY BOARD ROSTER SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY County Member Alternate Los Angeles: Richard Katz (Chair) Jaime de la Vega Member, Deputy Mayor, 4 votes Metro Board of Directors City of Los Angeles City of Los Angeles Mayor Appointee Michael Antonovich Supervisor, 5 th District County of Los Angeles Don Knabe Supervisor, 4 th District County of Los Angeles Chairman, Metro Board of Directors Ara Najarian Mayor City of Glendale Robert T. Bartlett Appointed by Metro Beatrice Proo Appointed by Metro Maureen Micheline Transportation Deputy Metro San Bernardino: Patrick Morris (Vice-Chair) Larry McCallon* Mayor Mayor 2 votes City of San Bernardino City of Highland Paul Eaton Alan D. Wapner* Mayor Council Member City of Montclair City of Ontario Orange: Paul Glaab Don Bankhead* Council Member Mayor Pro Tem 2 votes City of Laguna Niguel City of Fullerton Carolyn Cavecche Mayor City of Orange Riverside: Ron Roberts Greg Pettis* Mayor Council Member 2 votes City of Temecula Cathedral City Daryl Busch Mayor City of Perris Karen Spiegel* Council Member City of Corona One Gateway Plaza, 12 th Floor, Los Angeles, CA 90012

3 SCRRA Board of Directors Roster Page 2 Ventura: Keith Millhouse Brian Humphrey Council Member Commission Member 1 vote City of Moorpark VCTC EX-OFFICIO MEMBERS Southern California Association of Governments: Gary C. Ovitt Supervisor, 4 th District San Bernardino County San Diego Association of Governments: State of California: [CURRENTLY AWAITING APPOINTMENT] Contact: Linda Culp Senior Transportation Planner [CURRENTLY AWAITING APPOINTMENT] Secretary of Business, Transportation and Housing Agency Alternate: Michael Miles Director, Caltrans District 7 *Alternates represent either member Revised

4 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY SCRRA BOARD OF DIRECTORS MEETING FRIDAY, JUNE 10, :00A.M. LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY (METRO) BOARD ROOM ONE GATEWAY PLAZA, 3 RD FLOOR LOS ANGELES, CALIFORNIA AGENDA DESCRIPTIONS The agenda descriptions are intended to give notice to members of the public of a brief general description of items of business to be transacted or discussed. The posting of the recommended actions does not indicate what action will be taken. The Authority may take any action that it deems to be appropriate on the agenda item and is not limited in any way by the notice of the recommended action. The Chair reserves the right to discuss the items listed on the agenda in any order. A person with a disability may contact the Board Secretary s office at (213) or via brozowskik@scrra.net at least 72-hours before the scheduled meeting to request receipt of an agenda in an alternative format or to request disability-related accommodations, including auxiliary aids or services, in order to participate in the public meeting. Later requests will be accommodated to the extent feasible. SUPPORTING DOCUMENTATION The agenda, staff reports and supporting documentation are available from the Board Secretary, located at One Gateway Plaza, 12 th Floor, Los Angeles, CA 90012, and on the Metrolink website at under the Agenda link. PUBLIC COMMENTS ON AGENDA ITEMS Members of the public wishing to address the Board of Directors regarding any item appearing on the agenda may do so by completing a Speaker s Form and submitting it to the Board Secretary. Speakers will be recognized by the Chairman at the time the agenda item is to be considered. When addressing the Board, please state your name for the record. Please address the Board as a whole through the Chair. Please note comments to individual Board members or staff are not permitted when addressing the Board. A speaker s comments shall be limited to three (3) minutes. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA Members of the public wishing to address the Board of Directors regarding any item not on the agenda, but within the subject matter jurisdiction of the Board, will be taken under Item 26 (Public Comment), and will be subject to the same guidelines as noted above. One Gateway Plaza, 12 th Floor, Los Angeles, CA 90012

5 SCRRA Board of Directors Meeting Agenda Transmittal Date: June 3, 2011 Meeting Date: June 10, 2011 Page 2 1. Call to Order 2. Pledge of Allegiance PUBLIC HEARING 3. Public Hearing Proposed Fiscal Year (FY12) SCRRA Budget The Southern California Regional Rail Authority (SCRRA) is required, under the terms of the Joint Exercise of Powers Agreement (JPA), to adopt, no later than June 30 of each year, a budget for the succeeding fiscal year. SCRRA staff recommends that the Board of Directors: 1) Conduct a public hearing on SCRRA s Proposed Fiscal Year (FY12 ) Budget; 2) Upon the conclusion of the public hearing, conditionally adopt the FY12 Budget pending final approval by each of the SCRRA Member Agencies; and 3) In the event one or more individual Member Agencies have not approved their respective SCRRA FY12 contribution, authorize a continuing resolution in the amount of 1/12 th per month of the FY11 budget to be valid until such time as all five (5) Member Agencies have approved their FY12 contribution shares. Page 1 REGULAR CALENDAR 4. Approval of Meeting Minutes Staff recommends the Board approve the minutes of the May 13, 2011 meeting. Page 8 5. Annual Renewal of Property Insurance FY Board authorization is required to renew the purchase of All Risk Property, Pollution Legal Liability and Auto Fleet Insurance, Terrorism (TRIA) certified and non-certified coverage for property owned by SCRRA. Staff recommends the Board authorize the Chief Executive Officer to purchase All Risk Property, Pollution Legal Liability and Auto Fleet Insurance, Terrorism Coverage (TRIA) certified and non-certified coverage through agency broker Marsh for a not to exceed amount of $2,719,484 for the period July 1, 2011 to June 30, 2012 with the carriers listed in Attachment A, representing a reduction in approved premiums compared to last year of $93,854 Staff also recommends maintaining the earthquake sub limit to $15 million as described below. Staff also recommends maintaining the SIR deductible on rolling stock and locomotives at $2 million per occurrence while maintaining a $100,000 deductible for all other covered perils. Page Annual Renewal of Operating General Liability Insurance, Employment Practices Liability Insurance, and Crime Insurance FY Board authorization is required to purchase operating general liability, employment practices liability, and crime insurance coverage for FY Staff recommends the Board authorize the Chief Executive Officer to purchase General Operating Liability up to $300 million dollar limit, Employment Practices Liability, and Crime and Certified & Non Certified Terrorism Insurance in the amount of $11, for the period July 1, 2011 through June 30, 2011 through broker Marsh Inc. with carriers listed on

6 SCRRA Board of Directors Meeting Agenda Transmittal Date: June 3, 2011 Meeting Date: June 10, 2011 Page 3 Attachment A. Page RFP No. QM Evaluation Criteria External Audit Services Proposed evaluation criteria were developed to initiate a competitive procurement (Request for Proposal) to retain a technically qualified firm to provide external audit services on an annual basis. Staff requests the Board approve the proposed evaluation criteria, detailed in Attachment 1, specifying a weighting of eighty percent (80%) for technical qualifications and twenty percent (20%) for cost to retain a firm to provide external audit services. The proposed criteria are consistent with the Evaluation Criteria Policy adopted by the Board. Page Consultant Services Increase Contract Funding Authorization and Extend Period of Performance Staff is requesting a short term extension to the contracts listed below to allow completion of ongoing projects in the areas of safety, project management, strategic planning and data analysis. If there s a need to continue these services after this extension, it will be handled through a Request for Proposal process. Staff recommends the Board authorize the Chief Executive Officer to increase funding authorization and extend the period of performance for the following contracts: 1) Contract No. SP with Jim Schultz to increase the funding authorization by $60,000, for a new total not-to-exceed contract authorization of $283,500, and extend the period of performance by four months, terminating on October 31, Extension of this contract will allow Mr. Schultz to complete coordination of a Safety Leadership Workshop planned for this summer, involving senior management from labor unions, regulators, and trade associations. Mr. Schultz is also currently working on the development and execution of the first-ever rail system safety certification course, in partnership with the University of Southern California, which 50 operation managers will be attending in the fall of 2010; 2) Contract No. SP with Charles Williams to increase the funding authorization by $60,000, for a new total not-to-exceed contract authorization of $285,000, and extend the period of performance by one month, terminating on October 31, Extension of this contract will allow Mr. Williams to complete tasks identified relative to the Project Management audit conducted by Macias Consulting Group. Funding for these services has been allocated in the FY budget. Page Contract No. MS Request for FY Budget and Contract Authority for Track and Structures Maintenance with Veolia Transportation Maintenance and Infrastructure, Inc. (VTMI) Annual contract authority and budget to fund track and structures maintenance, other maintenance-of-way expenditures, capital project support, and recollectable support for Contract No. MS for VTMI is required. Consistent with the adoption of the FY Operating and Capital budgets by the SCRRA Board, staff recommends the Board authorize the Chief Executive Officer to approve $18,151,992 of contract

7 SCRRA Board of Directors Meeting Agenda Transmittal Date: June 3, 2011 Meeting Date: June 10, 2011 Page 4 funding authority for Contract No. MS with VTMI for FY The recommended amount is $9,251,992 for operating maintenance, and $8,900,000 for support of capital construction and recollectable projects. Page Contract No. MS222-09R Request for FY Budget and Contract Authority for Signal and Communications Maintenance with Mass Electric Construction Company (MECC) Annual contract authority and budget to fund signal and communications maintenance, other maintenance-of-way expenditures, capital project support, and recollectable support for Contract No. MS222-09R with MECC is required. Consistent with the adoption of the FY Operating and Capital budgets by the SCRRA Board, staff recommends the Board authorize the Chief Executive Officer to approve $12,445,896 of contract funding authority for Contract No. MS222-09R with Mass Electric Construction Company (MECC) for FY The recommended amount is $11,052,835 for operating maintenance, $843,223 for support of capital construction projects or training associated with capital construction, and $549,838 for support of third party reimbursable projects. Page Contract No. OP Request for FY Budget and Contract Authority for Maintenance of Equipment Services with Bombardier Transit Corporation (Bombardier) Annual contract authority and budget to fund maintenance of equipment and rehabilitation and renovation support services with Bombardier Transit Corporation is required under Contract No. OP Consistent with the adoption of the FY Operating and Capital budgets by the SCRRA Board, staff recommends that the Board authorize the Chief Executive Officer to approve $16,296,768 of contract funding authority for Contract No. OP with Bombardier Transit Corporation for FY The recommended amount is $16,056,768 for operating maintenance, including recollectable work, and $240,000 for rolling stock rehabilitation and renovation work. Page Contract No. OP Request for FY Budget and Contract Authority - Maintenance of Equipment Services at Stuart Mesa Maintenance Facility - Transit America Services, Inc. Contract authority and annual budget to fund maintenance of equipment services at Stuart Mesa Maintenance Facility with Transit America Services, Inc. is required under Contract No. OP Staff recommends the Board authorize the Chief Executive Officer approve $532,000 of contract funding authority for Contract No. OP with Transit America Services, Inc. for FY for equipment maintenance services at Stuart Mesa Maintenance Facility consistent with the agreement to implement commuter rail service between SCRRA and North San Diego County Transit Development Board (NSDCTDB). Page 50

8 SCRRA Board of Directors Meeting Agenda Transmittal Date: June 3, 2011 Meeting Date: June 10, 2011 Page Contract No. OP Metrolink Operator Services - Request for FY Budget and Contract Authority - National Railroad Passenger Corporation (Amtrak) Annual contract authority and budget to fund commuter rail operations, maintenanceof-way, and capital support services for Contract No. OP with Amtrak is required. Consistent with the adoption of the FY operating and capital budgets by the SCRRA Board, staff recommends the Board authorize the Chief Executive Officer to approve $29,995,831 of contract funding authority for Contract No. OP with Amtrak for FY The recommended amount is $$29,481,049 to fund commuter rail operations consistent with service assumptions for FY ; $21,000 to fund support of maintenance-of-way work trains; $281,577 to fund support of PTC work trains; $35,000 to fund Special Trains and Holiday Trains; $177,205 to fund Baseball trains. Page Contract No. SP Media Relations, Digital Photography, and Production Services Contract Award (Bench) MBI Media and Dietrich Nelson & Associates Media relations, digital photography, and production services are required to provide timely videographer and multi-media services for special media and stakeholder events, project documentation, safety education, and to obtain video that enables media outlets to receive up-to-date stock footage (b-roll) prepared for media broadcast. Staff recommends the Board authorize the Chief Executive Officer award competitively solicited Contract No. SP325-11, Media Relations, Digital Photography, and Production Services, to a bench of qualified firms, as follows: Contract SP325-11A to MBI Media and Contract No. SP325-11B to Dietrich Nelson & Associates. The requested services under this bench awarded contract will be for three years with a single two-year option. The total not-to-exceed contract funding authorization amount for the bench is $300,000 for the initial three-year term. Under this bench, work will be contingent and released through the Contract Task Order (CTO) process. This award is subject to resolution of any protest timely filed. Page Contract No. SP Consultant Services for Federal Legislative & Strategic Advice Increase Contract Funding Authorization and Extend Period of Performance - Kadesh & Associates, LLC To continue to receive legislative support, an increase in the contract not-to-exceed amount and extension of period of performance are necessary at this time. Staff recommends the Board find that a non-competitive contract with Kadesh & Associates, LLC is in the best interest of the Agency and authorize the Chief Executive Officer to amend Contract No. SP for Consultant Services for Federal Legislative and Strategic Advice with Kadesh & Associates, LLC; to increase the contract funding authorization by $60,000 for a new total not-to-exceed amount of $110,000, and to extend the period of performance to December 31, Page 57

9 SCRRA Board of Directors Meeting Agenda Transmittal Date: June 3, 2011 Meeting Date: June 10, 2011 Page Contract No. SP Consultant Services for Federal Legislative & Strategic Advice Increase Contract Funding Authorization and Extend Period of Performance Potomac Partners DC To continue to receive legislative support an increase in the contract not-to-exceed amount and extension of period of performance are necessary at this time. Staff recommends the Board find that a non-competitive contract with Potomac Partners DC is in the best interest of the Agency and authorize the Chief Executive Officer to amend Contract No. SP for Consultant Services for Federal Legislative and Strategic Advice with Potomac Partners DC to increase the contract funding authorization by $60,000 for a new total not-to-exceed amount of $110,000, and to extend the period of performance to December 31, Page Assembly Bill 427 (Pérez) Proposition 1B Transit Security Funds The Proposition 1B Transit System Safety, Security and Disaster Response Act provided $1 billion in an account for transit and waterborne safety and security projects. Since its implementation, there have been funds unused in the program. Assembly Bill (AB) 427 (Pérez) would change state law to allow operators who receive funds from the account for intercity passenger rail / commuter rail systems, to also be eligible for funds designated for capital expenditures of transportation planning agencies, county transportation commissions, and other specified transit-related agencies. AB 427 would also establish a process that would allow the California Emergency Management Agency (CalEMA) and the transit agencies to redistribute the funds and clarifies future allocations. Staff recommends the Board adopt a Support Work with Author position on AB 427 authored by Assembly Speaker John Pérez (D- Los Angeles) that would establish a process to reallocate unused funds in the bond program and clarify future allocations. Page Assembly Bill 650 (Blumenfield) Blue Ribbon Task Force on Public Transportation for the 21 st Century Assembly Bill (AB) 650 will establish a Blue Ribbon Task Force on Public Transportation for the 21 st Century to examine the benefits of public transit, the current state of the State s transit systems and recommend best practices and costs estimates for meeting certain economic, equity and environmental goals. Staff recommends the Board adopt a Support position on AB 650 authored by Assembly Member Blumenfield (D-San Fernando Valley) which will establish a task force to examine the State s current public transit system and identify sources of funding to meet the needs. Page Senate Bill 867 (Padilla) Build California Bonds Senate Bill (SB) 867 will authorize the California Transportation Financing Authority (CTFA) to issue Build California Bonds to fund transportation projects. The bill is sponsored by our member agency Metro and modeled after the federal proposal for Build America Bonds and will provide an additional financing mechanism for transportation projects. This bill creates another option to finance transportation projects and is consistent with our legislative program goals. Staff recommends the

10 SCRRA Board of Directors Meeting Agenda Transmittal Date: June 3, 2011 Meeting Date: June 10, 2011 Page 7 Board adopt a Support position on SB 867 authored by Senator Alex Padilla (D-Los Angeles) that establishes Build California Bonds that allow the CTFA to issue bonds for local transportation agencies. As an incentive, the bondholders would be eligible for a tax credits. Page Assembly Bill 892 (Carter) - Environmental Senate Bill 867 (Padilla) Build California Bonds Assembly Bill (AB) 892 will extend the state's responsibilities for the National Environmental Policy Act (NEPA) as provided in the NEPA Delegation Pilot Program from the 2005 SAFETEA-LU federal transportation authorization, until Staff recommends the Board adopt a Support position on AB 892 authored by Assembly Member Wilmer Amina Carter (D-San Bernardino). Page House Bill 1123 (Richardson) TIFIA Expansion Act of 2011 House Bill (HR) 1123 (Richardson), which is sponsored by our member agency Metro would significantly expand the Transportation Infrastructure Finance and Innovation Act (TIFIA). Staff recommends the Board adopt a Support position on HR 1123 authored by Congresswoman Laura Richardson (D-Long Beach) that would expand the current TIFIA program. Page Union Pacific (UP) Easement For Future Tail Track SCRRA was provided the opportunity to accept an easement for a future Tail Track at the north end of the Central Maintenance Facility (CMF) as part of the Colton Crossing Project. Staff recommends the Board authorize the Chief Executive Officer to execute an easement deed with Union Pacific Railroad Company in support of a future Tail Track at the north end of the CMF. Page Chief Executive Officer s Report Agency Update 24. Chair s Comments 25. Board Member Comments 26. Public Comment CLOSED SESSION 27. Closed Session a. CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION Pursuant to Subdivision (b) of Government Code Section (1 or more potential cases)

11 SCRRA Board of Directors Meeting Agenda Transmittal Date: June 3, 2011 Meeting Date: June 10, 2011 Page 8 b. CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION Pursuant to Subdivision (a) of Government Code Section William Lydon v. SCRRA et al. BC c. CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION Pursuant to Subdivision (a) of Government Code Section SCRRA v. Robert Arkow BC d. CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION Pursuant to Subdivision (a) of Government Code Section Brotherhood of Locomotive Engineers and Trainmen (BLET) vs. SCRRA and Veolia/Connex State: Case No. BC and Federal: CV e. THREAT TO PUBLIC SERVICES OR FACILITIES Pursuant to Government Code Section 54957: Consultation with Sheriff Deputy Representative(s), agency security operations management representatives and agency counsel f. CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION Pursuant to Subdivision (a) of Government Code Section ; Proceedings before the Federal Communications Commission Re: Applications of MCLM to Modify and Assign License for Station WQGF ADJOURNMENT

12 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY TRANSMITTAL DATE: June 3, 2011 MEETING DATE: June 10, 2011 ITEM 3 TO: FROM: SUBJECT: Board of Directors Chief Executive Officer Public Hearing Proposed Fiscal Year (FY12) SCRRA Budget Issue The Southern California Regional Rail Authority (SCRRA) is required, under the terms of the Joint Exercise of Powers Agreement (JPA), to adopt, no later than June 30 of each year, a budget for the succeeding fiscal year. Recommendation SCRRA staff recommends that the Board of Directors: 1) Conduct a public hearing on SCRRA s Proposed Fiscal Year (FY12 ) Budget, and 2) Upon the conclusion of the public hearing, conditionally adopt the FY12 Budget pending final approval by each of the SCRRA Member Agencies; and 3) In the event one or more individual Member Agencies have not approved their respective SCRRA FY12 contribution, authorize a continuing resolution in the amount of 1/12 th per month of the FY11 budget to be valid until such time as all five (5) Member Agencies have approved their FY12 contribution shares. Alternative The Board could to choose to modify the proposed FY12 Budget. However, any modification or revision that would increase any or all of the Member Agency contribution requirements would be subject to (re)approval by the affected Member Agency(s). This alternative action would require the Board to adopt a continuing resolution equal to a monthly value of 1/12th of the FY11 Operating Budget and continuing until such time as any or all affected Member Agencies have approved their revised share of the FY 12 Budget. Previously approved capital projects would be authorized to proceed at an amount no greater than their budgeted value as of June 30, One Gateway Plaza, 12 th Floor, Los Angeles, CA

13 Public Hearing Proposed Fiscal Year (FY12) SCRRA Budget Transmittal Date: June 3, 2011 Meeting Date: June 10, 2011 Page 2 Background Members of the public have been notified of this public hearing in accordance with applicable requirements, by advertising the hearing in 5 newspapers throughout the 5- counties. Overall Summary The $742.8 million proposed FY12 Budget consists of an Operating Budget of $179.6 million, an increase of 3.7% from the FY11 Budget, and a Capital Program of $563.1 million. The Operating Budget includes Train Operations of $153.2 million and a Maintenance-of-Way (MOW) budget of $26.5 million. The Capital Budget contains a Rehabilitation and Renovation Budget of $83.0 million and a New Capital Budget of $480.1 million in newly proposed and previously approved projects. Operating Budget Highlights and Assumptions The overall objectives in developing the FY12 Operating Budget were to: Not increase aggregate member subsidies; and Not implement a systemwide fare increase; and Enhance the overall safety and security of the system; and Provide additional service opportunities; and Provide the highest level of value to our customers. To strive to make Metrolink the Commute of Choice in Southern California Service Levels The FY12 budget reflects the operation of 164 weekday trains operating on seven lines, and 76 regular weekend trains operating on four lines. Currently, weekend services, both Saturday and Sunday, are operated on the San Bernardino, Orange County and IEOC, and Antelope Valley Lines. Services introduced during May 2011 are included and represent full year operations. Changes from FY11 Service levels as of July 1, 2010: Weekday Services: Weekend Services: Mid Year (FY11) service increases: Weekday Services: San Bernardino Line Antelope Valley Line Ventura County Line 144 trains operated 68 trains operated 14 weekday trains 6 weekday trains (including Express) 6 weekday trains (including Express) 2 weekday trains 2

14 Public Hearing Proposed Fiscal Year (FY12) SCRRA Budget Transmittal Date: June 3, 2011 Meeting Date: June 10, 2011 Page 3 Proposed additional service increases for FY12: Weekday Services: Orange County Line (MSEP) Weekend Service Restoration: Orange County Line IEOC Line 6 weekday trains 8 weekend trains 4 weekend trains (summer seasonal) Proposed Service Levels FY12 Weekday Services: Weekend Services: 164 trains operated 76 trains operated Revenues - Operating revenues include farebox, dispatching and maintenance-of-way revenues, interest, other minor miscellaneous revenues. As proposed, these sources are expected to total $98.5 million, an increase of 7.6%, or $7.0 million from FY11. Fare revenues are calculated by operating line segment through the use of an applied statistical methodology. Total Farebox Revenue is projected increase to $81.7 million or 7.6% above the FY11 Budget. The effects of the economic recession on Metrolink ridership appear to have reached a low point. Metrolink is engaging an active strategy of ridership recruitment and retention through a number of different avenues. Previous strategies have been based on overall service awareness and the provision of information. Current strategies are predicated on an aggressive, sales based, outreach and customer service effort to attract new potential riders as well increase annual ridership retention and is based on the following programs: Corporate Partnership Program: This program includes corporate clients purchasing multiple tickets per month (5 or more). Staff has identified approximately 8,000 potential work sites within the catchment areas of the SCRRA s services. Specific sales teams have been created in an effort to expand additional corporate partners and ridership. Additionally, staff has been assigned to ensure the ongoing relationship to our current clients is maintained, strengthened, and expanded. The goal of the program is to double the agencies current corporate base (+130) during the year as well as retain and increase ridership of our current accounts by 10%. Promotional Marketing: This program includes efforts to outreach and bring value to those passengers with specific locational or travel requirements; increase group travel opportunities; provide specific operational services such as prom trains, the current Dodgers/Angels services; and attract off peak riders to utilize capacity. One example of initial successful efforts includes the Board s adoption of a new weekend pass program. An additional initial success has been the partnership of the SCRRA and casino operators in the Inland Empire where off-peak riders on the San Bernardino Line show their valid 3

15 Public Hearing Proposed Fiscal Year (FY12) SCRRA Budget Transmittal Date: June 3, 2011 Meeting Date: June 10, 2011 Page 4 Metrolink ticket and receive free round trip shuttle service provided by the casino operator. In excess of 5,000 riders have taken advantage of this offer since its inception in January. Customer Services Focus: This program is designed to provide greater value to the regular Metrolink rider. Beginning May 2011, customer engagement representatives (CER) as part of the new C.O.A.T. (Customer On-board Assistance Team) Program began riding trains. While on the train, CERs are able to interact with our customers, answer questions, seek feedback on various Metrolink initiatives, promote new service, and assist with fare verification and other duties as requested by the train's conductor. An additional program includes the establishment of a riders reward program. The expectation of these combined programs is an aggregate ridership increase of approximately 800 thousand, or 7.5%. Average weekday ridership is projected to total 43,885. Total ridership, including all weekend services, is expected to exceed 11.8 million passenger trips. Freight railroads and Amtrak Intercity services operating over territory owned by SCRRA member agencies provide dispatching and maintenance-of-way revenues, based upon existing agreements. Dispatching Revenues are estimated to equal approximately $3.0 million, no change from FY 11. Maintenance of Way revenues are estimated to equal $12.9 million, an increase of 6.0% from current from collection rates and 16% above the adopted FY11 budget. Other miscellaneous revenues include: participation by Amtrak in the agency s Ticket Vending Machine (TVM) program, Interest Income, and other minor reimbursements. These funds are expected to add $0.9 million. Expenses Total operating expenses include both Train Operations and the maintenance of Member Agency owned Rights-Of-Way. For FY12, the proposed budget includes, as referenced above, a Train Operations budget of million and a Maintenance-of-Way (MOW) budget of $26.5 million for a total of $179.7 million, an increase of $6.3 million. The single largest increase within the Operating budget is the anticipated cost of diesel fuel required for locomotive operations. An estimated $3.40 per gallon has been included in the proposed budget versus $2.40 in FY11. This change, inclusive of fuel required for new service operation leads to an increase of $7.3 million or 115% of the entire increase in the Operating budget. In order to address this increase, the inclusion of new services, and other contractually required cost escalation factors, the agency aggressively reviewed the FY12 budget to find efficiencies, work with our contractor partners to reduce costs, and reexamine each line of the budget to ensure all planned work was necessary, in alignment with agency priorities, and was planned to be completed within the time and resources available. 4

16 Public Hearing Proposed Fiscal Year (FY12) SCRRA Budget Transmittal Date: June 3, 2011 Meeting Date: June 10, 2011 Page 5 Among the largest declines was the cost of rolling stock equipment maintenance, a reduction of $5 million or 18.6% from FY11. Included in the reduction are changes in the fleet size maintenance plan, transfer of positions from the contract to in-house service provision, an overall reduction in staffing and a lessened parts and materials requirement due to the incorporation of the new Guardian cars produced by Rotem. The combined reductions of the agency s 4 largest operating contractors the Big 4 Train Crews; Equipment Maintenance; Signal & Communications Maintenance; and Track & Structure Maintenance equaled $8.0 million or 10.1% from adopted FY11 levels. Member Agency Subsidies - Member Agency subsidies represent the additional revenue necessary to operate the Metrolink Commuter Rail system. The FY12 Proposed budget estimates required aggregate Member Agency subsidies, including new service requirements, to decline by $0.6 million, or 0.8% from FY 11. Other highlights and assumptions of the FY12 Operating Budget include: - Total Revenue Train Miles will be 5.4% higher than in FY Operating expenses per train mile are expected to be $67.04, unchanged from the adopted FY11 budget. - Subsidy per passenger mile equals $ Operating expense per passenger mile is expected to decline from $0.41 to $ Total Revenue recovery is projected to equal 54.9%. - Farebox recovery is expected to equal 45.5%. - Member Agency subsidies are estimated to provide 45.1% of the required operating revenues in FY12. - Diesel Fuel is assumed to equal $3.40 per gallon for the year, from $2.40 per gallon in FY11. - Operating Liability and Property insurance is anticipated to remain largely unchanged from current actual levels, an increase of 0.56%. Capital Program The Capital Budget consists of two major components. These are the agency s Rehabilitation and Renovation, and New Capital programs. These budgets amount to $83.0 million and $480.1 million, respectively, for a total of $563.1 million. Both the New Capital and Rehabilitation and Renovation budgets include projects authorized in prior years but incomplete as of the end of a fiscal year, as well as new project authority requested in FY12. Rehabilitation and Renovation projects are those that replace worn out assets with like or improved assets and thus preserve and extend their useful life. 5

17 Public Hearing Proposed Fiscal Year (FY12) SCRRA Budget Transmittal Date: June 3, 2011 Meeting Date: June 10, 2011 Page 6 New Capital projects are those projects that expand the railroad infrastructure and include such items as sidings, additional track, material upgrades of the signals and communication system, and new rolling stock. Several important New Capital and Rehabilitation projects are included to both expand capacity and more efficiently operate passenger (Metrolink and Amtrak) and freight services on member agency owned routes. These projects include: - The development of Positive Train Control (PTC) a predictive collision avoidance system. PTC must be installed on the SCRRA system and all Passenger Inter-City Freight Railroads by 2015 with an earlier SCRRA goal of Dec Completion of the construction of capacity improvements on the Orange County Line in anticipation of expanded services between Fullerton and Laguna Niguel; - The continued receipt of the balance of the original base order of 110 new passenger vehicles as well as ongoing assembly of additional vehicles. - Ongoing construction of a number of Sealed Corridor projects to significantly enhance the safety and security of the Right-Of-Way (ROW) and crossings; - The installation of fiber optic communications infrastructure throughout the agency s service area to increase safety and communications capacity of the agency s communications network backbone; - Continued work at Los Angeles Union Station on the former mail dock to expand passenger capacity at the station; - Track, Signal, and Bridge improvements throughout the system as part of the agency s ongoing Rehabilitation and Renovation program; - The ongoing upgrade to the agency s Oracle Financial Information System. Other Considerations During FY11, as part of the effort to reexamine agency staffing requirements, address identified alignment issues, and provide for a greater degree of oversight, the Board approved an increase of 14 positions with a projected savings of approximately $0.7 million annually. Adopted FY11 Position Authorizations 232 Positions added FY11 Materials Management 9 Labor Compliance 3 In-house legal counsel 2 Total Board Approved additions 14 Proposed position authority FY

18 Public Hearing Proposed Fiscal Year (FY12) SCRRA Budget Transmittal Date: June 3, 2011 Meeting Date: June 10, 2011 Page 7 Budget Impact This item represents the proposed FY12 Budget. Prepared by: Drew Phillips, Manager, Budget JOHN E. FENTON Chief Executive Officer 7

19 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY MINUTES OF THE SCRRA BOARD OF DIRECTORS MEETING MAY 13, 2011 ITEM 4 BOARD MEMBERS/ALTERNATES IN ATTENDANCE: METRO: RICHARD KATZ (Chair) (4 votes) MICHAEL ANTONOVICH 3 ROBERT BARTLETT JAIME DE LA VEGA Votes 2 2 SANBAG: PATRICK MORRIS (Vice-Chair) 1 (2 votes) PAUL EATON 1 LARRY McCALLON ALAN WAPNER OCTA: PAUL GLAAB 1 (2 votes) CAROLYN CAVECCHE 1 DON BANKHEAD RCTC: DARYL BUSCH 1 (2 votes) KAREN SPIEGEL 1 VCTC: (1 vote) -- EX-OFFICIO MEMBERS: CALTRANS: -- SCAG: -- Meeting minutes are prepared in a format that corresponds with the Board Meeting Agenda, which is incorporated by reference with these minutes. SCRRA Board Agendas are available online at under the Board Agenda link or from the Board Secretary at (213) Call to Order The SCRRA Board of Directors Regular and Special Meetings were called to order concurrently by Vice-Chair Morris on Friday, May 13, 2011 at 10:00 a.m. 2. Pledge of Allegiance Vice-Chair Morris led the group in the Pledge of Allegiance. 1 Chair Katz arrived during the discussion of Item No. 3 2 Director Antonovich arrived during the discussion of Item No. 3 3 Diector Bartlett left during the discussion of Item No Director de la Vega arrived during the discussion of Item No. 3 One Gateway Plaza, 12 th Floor, Los Angeles, CA

20 SCRRA Board of Directors Meeting Minutes May 13, 2011 Transmittal Date: June 3, 2011 Page Public Comment Vice-Chair Morris called on members of the public who requested to speak. Mr. Daniel Garcia spoke regarding ADA compliance and commended Metrolink for improving the quality of transportation. He stated that for passengers who are deaf or hard of hearing, having the use of visual signs such as are provided on the blue line and gold line light rail are important. He asked that the Metrolink Board provide the same type of visual signage aboard the trains for those passengers who may be deaf or hard of hearing. Jose Rodriguez, a student at Cal State Los Angeles wanted to thank Metrolink for adding Train 382 on the San Bernardino line to the schedule which allows students who have class at 1:30 p.m. to take Metrolink to school. He then stated that he had concerns regarding Trains 333 and 335 also on the San Bernardino line which train times have been adjusted from the previous schedule. He commented that the arrival time of these trains to Cal State LA have caused some students to take the MTA bus instead of the train due to longer waiting periods. 3. PUBLIC HEARING Proposed Fare Policy Changes Vice-Chair Morris opened the Public Hearing and called on members of the public who requested to speak on this item. Jose Rodriguez, Student at Cal State Los Angeles commented that the elimination of the 10-trip ticket and introduction of the 7-day weekly pass is not a good option for students who do not have classes every day, but if the option for a student discount for a one-way or roundtrip ticket is offered he would be in favor of eliminating the 10-trip ticket. He also presented a suggestion for 7-day passes for students that would allow them to have a 7-day pass for a specific day of the week, for example the student could purchase a 7-day pass on Monday that would be valid for 7 Mondays in a row. This proposal was submitted to the Board Secretary and will be available upon request. Chair Katz apologized for arriving late and thanked Vice-Chair Morris for starting the meeting. Shelia Briggs, Professor at University of Southern California has used Metrolink service since January 1993 to commute from Claremont to Los Angeles in which she travels two days a week. She stated that many faculty and students have similar schedules, in which the purchase of a monthly pass would serve too costly. The proposed 7-day pass would not be financially viable for her most weeks. She mentioned that she would not object to the elimination of the 10-trip ticket if she would have the option to purchase one-way and roundtrip tickets in advance. Ms. Briggs submitted her letter to the Board Secretary and will be available upon request. Chair Katz requested staff to speak to Ms. Briggs regarding some of the issues she raised, especially the ability to purchase multiple tickets in advance. 9

21 SCRRA Board of Directors Meeting Minutes May 13, 2011 Transmittal Date: June 3, 2011 Page 3 Lisa Awerbach, teacher at Claremont College in Pomona who teaches a few days a week, expressed her appreciation for the addition of the late night trains on the San Bernardino line, and thanked Ms. Briggs for her comments, which she agrees with. She stated that, as a passenger who rides the train two days a week, the added expense to purchase a 7-day pass or the inconvenience of purchasing a ticket each time she travels are both bad options and she urged the Board to keep the 10-trip ticket as it is convenient and cost effective for passengers like herself. She suggested as an option that conductors ask for tickets and stamp the tickets as done in other cities. Chair Katz commented that staff is working on making the process of purchasing tickets more user-friendly. Ms. Angie Starr, Director of Communications, presented the results of the public hearing comment period and the staff recommendations. The public hearing was held regarding new fare options and discounts. She noted that at the publishing of the agenda packet on May 6, 2011 additional comments were received and these comments were provided for review. She further commented that a total of 340 comments were received during the public hearing process with 21 comments regarding the 7-day pass and 250 comments regarding the possible discontinuation of the 10-trip ticket. She stated that monthly 11, trip tickets are purchased. Mr. Henning Eichler, Manager, Research and Planning, stated that Metrolink in continuing to strive to their Mission to Excellence, which is accomplished by adding additional service, providing higher quality of service and better value and efficiency. He stated that the 10-trip ticket is the number one source of fare evasion rate of approximately ten percent (10%) which results in about $1.2 million in lost revenue each year, along with maintenance costs of ticket validating machines totaling $300,000 each year. He also commented that purchase of advance tickets is available at any of the ticket vending machines (TVM) using the special ticket option. Chair Katz asked Mr. Eichler to repeat the information regarding revenue lost from the 10-trip ticket. Mr. Eichler stated that this week specific enforcement action by sheriffs and conductors was taken and as a result of this action found that about 10% of all 10- trip tickets were not validated. Based on that figure alone, staff estimated that $1.2 million of fare revenue has been lost. Director Cavecche asked if the high fare evasion is due to how the agency implements the method of validation and issuance of this particular ticket type. She also asked if this is the type of fare media the agency wants to discontinue and if there is a way to continue the ease of use of the 10-trip for the customers without the need of validation. Chair Katz stated that staff considered various options; however, $1.2 million of revenue lost is something that cannot be ignored. He noted that the $10 weekend pass was developed with the customer as the main focus, as it is easy to use and - 10

22 SCRRA Board of Directors Meeting Minutes May 13, 2011 Transmittal Date: June 3, 2011 Page 4 allows the passenger to ride Metrolink system-wide as many times as they like during the weekend hours. Vice-Chair Morris stated that the Ticket Vending Machines (TVMs) can be intimidating especially for infrequent riders, and this has been expressed repeatedly during this public comment period. He stressed for the need to make this process more userfriendly and asked where the agency is headed conceptually,, for example, on the ability to purchase tickets online. Mr. Eichler stated the agency is aware of the challenges faced by customers at the TVMs and staff is currently looking at available technology over the next few years, which includes automatic fare collection, fare pay via cell phone, and viable options to upgrade the current TVM system. He stated that, unfortunately, the agency currently doesn t have an immediate resolution. Chair Katz mentioned the ideal long term answer is one fare media in all counties on all systems, using a system like the TAP program. Director Bartlett concurred, noting that the agency needs to have 21 st century technology and in his opinion the tap card is a great solution. Chair Katz stated that it will take time to stop use of the TVMs and the agency does not want to deviate farther away from the TAP program, as it is dependent on Metro finalizing this program. He noted that ultimately TAP would be the medium for all the agencies to use. He voiced one concern regarding the TAP program, noting the use of credit cards should be avoided, and a debit card is the direction to go. Director Bankhead stated he finished reading all the public comments submitted and one passenger stated that last year the purchase of the 10-trip ticket went from $26 to over $53 and asked if that figure is correct. Mr. Eichler confirmed that a large fare increase took place in July 2010 and this included the reduction of the senior and disabled discount from fifty (50) to twenty-five (25) percent on 10-trip tickets; therefore the combination of the discount and the increase in base fare may have resulted in that increase for the passenger. Director Bankhead stated that the agency should consider ways to correct the validation problem, as most comments received asked to continue selling 10-trip tickets. Chair Katz stated that the immediate problem is the loss of $1.2 million in fare revenue. The new ticket options are designed to be convenient and at the same time recuperate lost funds. He further stated that the customer service group is going to continue to find ways to make the process more user-friendly, and he has directed staff to monitor ticket sales very closely and determine if the elimination of the 10-trip ticket type produced a negative impact, looking for ways to make the process more user-friendly as staff continues to explore options with the TVMs and/or the TAP program. Mr. John Fenton, Chief Executive Officer stated that at present a conductor s main focus is the safety of the passengers. If that changed and the conductor is now 11

23 SCRRA Board of Directors Meeting Minutes May 13, 2011 Transmittal Date: June 3, 2011 Page 5 focused mainly on fare enforcement, the agency s cost structure would be affected, as additional crew members aboard the trains would be needed. He stated that the 10- trip ticket has over time proven to be very costly to both administer and monitor, and agreed that the ticketing options in the future need to change. Director McCallon asked why staff decided on a 7-day pass verses a 5-day pass as a weekend pass is also being introduced at this time. Mr. Eichler responded that the most likely users of the 7-day pass are commuters and the 7-day pass is priced at 3.5 roundtrips thus essentially making the weekend free for those passengers. Chair Katz stated with the flexibility and freedom of the weekend pass why staff did not propose a 5-day pass (Monday Friday). Mr. Eichler stated that the 7-day pass is seven consecutive days. The 5-day pass would have the same price as the 7-day pass, as both would be priced at 3.5 roundtrips, therefore, the 7-day pass gives the weekend for free versus having to now purchase the $10 weekend pass. Vice-Chair Morris also commented that the 7-day pass is seven consecutive days and mentioned if the 7-day pass was purchased during the middle of the week, that pass holder would have the 7-day ticket valid through the weekend and into the beginning of the following week. Chair Katz then asked staff on the status of customers ability to purchase train tickets online. Mr. Eichler stated that staff is in the process of re-building the Metrolink website to include online ticket purchasing. Mr. Mark Waier, Manager, Sales and Marketing added that the goal is to have the revised website running by September 2011 with the online ticketing portion available approximately March September Chair Katz would like to meet with staff to understand why the process will take so long to implement the online ticketing function. He also suggested that at the next committee meeting to provide such information. Director Cavecche stated that she would be interested to find out the percentage of ridership that is lost, if any, due to the elimination of the 10-trip ticket, as for some commuters the purchase of the 7-day pass may not be financially feasible, and would therefore stop riding the train. She also asked why there wasn t the option of a 14-day pass or if there is an option to allow the purchase of a 14-day pass, but understands that there are only so many ticket options allowed on the TVMs that adding the 14-day in addition to the 7-day is not a viable option. She also stated that on the Orange County line, OCTA has implemented the interconnection pass which lets the passenger pay a certain amount and go between the bus and the Metrolink train as much as desired and will need the validation machines to use these passes. She 12