Minutes - November 7, 2002

MEMBERS PRESENT: March Church (Vice Chair), Joe Galligan, Richard Gordon, John Lee, Lee Panza

MEMBERS ABSENT: Michael Guingona (Chair), Ira Ruskin

STAFF PRESENT: Michael Scanlon, Joan Cassman, George Cameron, Monica Colondres, Roger Contreras, Brian Fitzpatrick, Howard Goode, Rita Haskin, Joe Hurley, Aurora Jose, Martha Martinez

In the absence of Chair Guingona, Vice Chair Church presided over the meeting. He called the meeting to order at 5:07 p.m. and led the pledge of allegiance to the flag.

CONSENT CALENDAR:

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

1. Minutes of October 3, 2002 meeting.
2. Statement of Revenues and Expenses, September 2002.
3. Conflict of Interest Code

PUBLIC COMMENT: None at this time.

CITIZENS ADVISORY COMMITTEE REPORT:

Pat Dixon reported the CAC unanimously approved continuance of their participation in the Measure A drive and look to the TA for leadership. Doris Maez, Vice Chair, will head committees that are formed through that. The CAC approved the adoption of the Conflict of Interest Code. The CAC is also looking for two new members. The last day for applicants to file applications is November 20. There were discussions relative to the TA meeting dates. If the January 2^nd is going to be put over to the 9^th, the CAC will meet on the 7^th. Also, she mentioned that Rich Napier gave an excellent presentation to the CAC on Measure A and C/CAG’s roles and responsibilities and everyone had their questions answered.

CHAIRPERSON’S REPORT: Chair Guingona was absent, no report.

SAMTRANS LIAISON REPORT:

Executive Director Scanlon referred to the report in the packet with the correction that the Heartwalk Committee raised $27,000, not $24,000. He expressed pride of staff for their spirit and recognized Carol Wolf, Manager, Engineering Support Services and Gary Lambert, Manager, Risk Management, co-captains of the SamTrans team for their efforts in the funding raising drive.

JOINT POWERS BOARD REPORT:

Mr. Scanlon reported on the two previous JPB meetings on October 7 and 31 as follows:

1. Ridership continues to be off. Average weekday ridership year to date is off 16 percent to 29,000 riders a day due to combination of the slump in the economy, the cut in the weekday service by five percent, and increase in fares by 10 percent. Last year, it was over 34,000 riders a day.

2. There were two recent fatalities (suicide). Nevertheless, this is a much safer year as a result of efforts staff has been undertaking over the last couple of years to improve safety. This figure is substantially off compared to two previous years.
3. On-time performance remains extremely good.
4. The Board awarded contract for visual message signs, another dimension of customer service. It will tell when the next train is coming.
5. Quarterly progress report was made on construction activity which is in full swing. In November, bids will be opened on the South CTX construction.
6. He hoped to keep funds flowing for the electrification project from the local partners until the certification is received from the Federal government.
7. During the World Series, the Baby Bullet cars rolled for the first time. They were very well received by the public. There were 17,500 additional passengers during the four games of the World Series. Also service will start for the Sharks games in San Jose.
8. "Train for Tots" will run on Saturday, November 30 and Sunday, December 1 in cooperation with the Marine Corps and the Salvation Army Band. He invited everyone to join the event.

Director Galligan inquired about the 34,000 per day and 29,000 per day ridership figures. Mr. Scanlon responded those are the average weekday numbers. While it is not a direct comparison, not having weekend service has a residual effect on weekdays. Some people that would ride five days a week, a couple of those may be falling on a Saturday, may have chosen an alternative means of transportation.

In connection with the recent Santa Clara initiative that was successful, Mr. Scanlon explained that said initiative would dedicate funds exclusively for highway use, since previous measures were devoted exclusively to transit. Funding is derived from Santa Clara’s share of State Transit Improvement Project (STIP) revenues.

REPORT OF EXECUTIVE DIRECTOR: Mr. Scanlon –

1. Congratulated Chair Guingona for his reelection to his office in Daly City.
2. Thanked the Board for its opposition to Proposition 51, which was defeated at the polls.
3. The RFP has been issued to engage the services of a consultant to do the Public Education Program concerning Measure A, and to form projects and programs in cooperation with the Board of Supervisors, the C/CAG, Samceda and P³. Samceda and P³ are in negotiation with the firm that will raise private money and do the advocacy work.
4. Staff had a workshop with Burlingame Council. Staff made a presentation on the highway projects that affect their community and Caltrain Station improvements. Mr. Goode reported staff also is working with San Bruno and a meeting is taking place with the Citizens Advisory Committee that was created by the San Bruno City Council to provide input on the grade separations projects in San Bruno. Similar meeting was held in Menlo Park to look at developing grade separation projects for these grade crossings. There will be a public meeting on December 9 that will be attended by their council members. Mr. Goode further reported that Mr. Joe Hurley, Director of Transportation Authority Program, made two presentations on the update of the Strategic Plan and the effort on the technical side to identify projects for the new Measure. He also did a presentation to the C/CAG TAC and the C/CAG CMAQ committees. Mr. Goode further indicated there were five half-cent sales tax measures on the ballot in California. One of them, a renewal in Riverside County, passed. It was a proposal for a 30-year period and it received 69 percent of the vote. The other four failed, three of which are renewals. Some of them got 53.7 percent, 50.7 percent, 61.3 percent, 59.8 percent, demonstrating how difficult it is to achieve the threshold of 2/3 votes. Mr. Scanlon advised that he is a member of the Executive Committee of the California Transit Association. They adopted a program to see what they can do legislatively about rolling back the 2/3 vote requirement.

APPROVAL OF BOARD MEETING CALENDAR FOR 2003

The Board unanimously approved the proposed meeting calendar, adopting the regular meeting dates except the January meeting that is moved to the 9^th instead of the 2^nd.

AUTHORIZATION FOR EXECUTIVE DIRECTOR TO EXECUTE A 2-YEAR LEASE WITH MELODY TOYOTA FOR A PORTION OF 101 SAN MATEO AVENUE, SAN BRUNO AND TO REIMBURSE SAMTRANS FOR PAYMENT OF A REAL ESTATE COMMISSION

Brian Fitzpatrick, Real Estate Manager, reported this is a portion of the property recently bought from San Bruno Lumber. After the proposed two-year term, the contract will continue on a month-to-month period. It will go by the CPI increase. The two-year period will assure that it will not interfere with future projects.

Director Panza inquired into the purpose of retaining the services of Cornish and Carey through SamTrans. Mr. Fitzpatrick answered this is a 100,000 square foot site and 21,800 of it is the subject of this lease. Staff wants to market this with the greatest amount of exposure. With the prevailing tough market, three interested parties offer prices that are significantly below market rate except for Melody.

Director Lee remarked this is a professional way to do business and he has no problem with the proposal.

The Board, by roll call, unanimously passed Resolution No. 2002-20.

AUTHORIZATION FOR EXECUTIVE DIRECTOR TO EXECUTE A 2-YEAR LEASE WITH BUDGET RENT A CAR FOR PROPERTY AT 281 EL CAMINO REAL, SAN CARLOS AND TO REIMBURSE SAMTRANS FOR PAYMENT OF A REAL ESTATE COMMISSION

Mr. Goode informed that at the last minute this evening, it was determined that this item is not ready. He requested deferment of this item.

REQUEST FROM THE AUTHORITY

Director Galligan stated that for a number of reasons, most of the groups that he is involved in. both private and government sectors, have an audit committee. He articulated its authority and functions, some of which are to hire and fire auditors, review internal procedure and prepare reports in the way the Board would want to present to the public. The service fee will be brought to the Board for approval. Its establishment would help preserve the integrity of the financial statements and insure compliance with regulatory and legal requirements. They will review the qualifications and independence of external auditors, meet with management and look at the budget. One of the big concerns that they need to look at is risk management, its proper coverage and costing. He informed that County Auditor Tom Huening is also making the same recommendation to the Board of Supervisors, for the same reasons. He added there are some CPAs who actually belong to organizations like the California Association of CPAs and the American Institute of CPAs that require high standard to be a member. It is like getting the USDA stamp of approval by being members of those types of organizations. He also pointed out that the statements belong and are the responsibility of the Board. In extending Measure A, he stated that the Board has to make sure of the financial statements’ integrity.

Director Lee thinks that this is an exercise of due diligence, a very normal thing and it is a standard for all government agencies. It is good for the education of this Board.

Director Gordon likewise supported the proposal. He clarified that the committee will recommend to the Board the "hiring and firing of auditor."

Director Panza inquired who from the Board would be on the committee. Director Galligan responded it would be less than the majority as far as the Board is concerned. He recommended two or three members of the Board should be on the Committee.

Director Lee clarified that staff would maintain all the responsibility to do the work and bringing it to the Board for examination. The Board would just be an oversight at the end of the audit.

Director Church expressed support of the establishment of this committee to show that their operation is beyond reproach and it can be used as a marketing tool for Measure A.

Mr. Scanlon suggested having no more than three members on the committee because four members would comprise a quorum. This effort will be fully supported by staff and they will prepare and do all the work that needs to be done.

The Board unanimously approved the establishment of the Audit Committee. Directors Galligan, Gordon and Lee volunteered to be members of the Committee.

Director Galligan asked if the Finance Division is ready for the audit. Roger Contreras, Chief Financial Officer, responded it would be ready within the next week or so.

REPORT OF LEGAL COUNSEL:

Attorney Joan Cassman advised that there is nothing to report at this time. With regard the setting up of the Audit Committee, she noted the need to discuss with the Board the outline concerning the charge and constituency of this committee.

WRITTEN COMMUNICATIONS TO THE AUTHORITY: None.

ADJOURNED: 5:55 p.m.