CITIZENS ADVISORY COMMITTEE (CAC) REPORT
Larry Shaine reported:

• Noted the presence of Doris Maez and Pat Dixon in the audience.
• The CAC and their subcommittees will continue working throughout 2004.
• Received a presentation from Deputy Chief of Development, Ian McAvoy on the Strategic Plan 2004/2023.
• Received a presentation from the Water Transit Authority regarding the proposals and the plans for the ferry service.
• Cordially invited all board members to attend the CAC meetings. The next meeting will be February 3.

• Presented a Commendation to Doris Maez for her service as chair of the CAC for 2003.

The written report from the December 10, 2003 meeting was included within the packet.

JOINT POWERS BOARD REPORT

Michael J. Scanlon reported on the January 8, 2004 Peninsula Corridor Joint Powers Board meeting, as follows:

• Swore-in Don Gage (Santa Clara County) and Jim Hartnett (San Mateo County).
• Re-elected John McLemore as chair with Michael Nevin as vice chair for 2004.
• Chair McLemore reported that the APTA General Managers and Transit Board Members Seminar will be held January 30 - February 3, 2004 in Santa Monica.
• Sue Lempert reported in that among the many items on the March 2 ballot, the Regional Measure 2 - The Regional Traffic Relief Plan will be included. The measure calls for a $1 increase in the bridge toll, which would go toward a variety of transportation projects. If approved, some money would go toward Caltrain improvements, Dumbarton Rail capital and operational expenses and the Transbay Terminal. Other things of interest include providing an express bus services over bridges, providing money for the BART tube seismic retrofit and a ferry service from South San Francisco.
• Bruce Balshone of the CAC reported that at the last meeting, he was elected as the chair with Brian Wilfey as the vice chair. Key issues being looked by the CAC for 2004 include the Baby Bullet service, the building of the maintenance facility, the funding shortfall effects and the Strategic Plan.
• Key Caltrain Performance Statistics:
  1. November ridership went from 644,282 to 610,549 riders, a five percent decrease.
  2. November average weekday ridership was down five percent, from 26,947 weekday riders to 25,637.
  3. November total revenue was off 12 percent from $1.64 million to $1.45 million.
  4. On-Time Performance remained the same at 94.5 percent for November.
  5. November shuttle ridership had a decrease of 20 percent with 3,601 riders, down from 4,518.
• Three extra northbound trains ran on New Year’s Eve for the fireworks and Diamond Walnut San Francisco Bowl game in San Francisco. Service was free after 11p.m. There were approximately 1,900 passengers.
• This week Mac World is being held at Moscone Center in San Francisco.
• On January 19, the Freedom Train will operate from San Jose to San Francisco.
• The Monthly Safety and Security Report was distributed.
• Authorized Award of Contract to Pacific Parking Systems, Inc. for the Purchase of Vanguard Pay-by-Space Parking Permit Vending Machines.
• Set a public hearing: Level of Service for Caltrain for February 5, 2004 at 10:00 a.m.

• Michael Scanlon recognized Chair Church for being sworn-in as the president of the County Board of Supervisors.
• Howard Goode, Chief Development Officer, reported that next Thursday, January 15, will be the third meeting of the special countywide technical group that is comprised of representatives from the local jurisdictions around the county. Mr. Goode expects that from that meeting will come a completed recommendation as to various programs and specific projects as candidates for a new measure. The anticipation is that staff will bring that recommendation, as well as staff evaluation of it, to the board at the next meeting. Then in March, staff would be asking the board to consider adoption of the draft plan. That will set in motion the process through which the plan first goes to MTC to be found consistent with regional planning and then secondly, back to the cities Board of Supervisors for their consideration and adoption, all of which needs to take place prior to the end of July in order to make a November ballot issue. In terms of the next few steps, staff suggested the consideration of a workshop in the month of February to focus on the measure and give an opportunity for additional public outreach. Mr. Goode also reported that the TA, the Board of Supervisors and C/CAG all received a letter from the League of Women Voters expressing some concerns and offering their assistance to help in terms of public outreach.

  Mr. Scanlon commented that the presentation that Ian McAvoy will be giving tonight, will be brought to anyone who would like to see it. Recently, letters were sent to all City Managers asking if staff could come before the City Councils to give the presentation to the Cities as well as the Board of Supervisors. Additionally, staff is reaching out to the Chambers of Commerce, service organizations, environmental groups, etc. Mr. Scanlon stated in addition to staff members, attorneys from Hanson Bridgett are willing to give presentations on a pro bono basis. The TA is a public educator and wants to find out what the public wants to have included in the measure.

  Director Galligan suggested setting the date for the workshop offline, not in a public meeting. Director Galligan also questioned what is being done as outreach to those specific individuals that have already come out opposed to the measure.

  Mr. Scanlon responded that staff is doing outreach and are successful.

  Ian McAvoy, Deputy Chief of Development, made a presentation on Measure A: Investing in our Transportation Future. Mr. McAvoy commented that there has been some good success working with public groups and educating the community of what has been achieved to date with the current measure and what can be anticipated of the process for the new measure. Key highlights of the presentation included the changes to the once rural San Mateo County including economic growth and increased employment, traffic congestion, public transportation taking many cars off the road, Caltrain as an extremely successful regional rail alternative, the transit alternative with BART service to SFO, Shuttles that link Caltrain and BART riders with major employment sites and Redi-Wheels service that provides a countywide paratransit network. Mr. McAvoy noted that Measure A was passed in 1988 and the TA investments include Caltrain/Rail, Grade Separations, State Highways, Local Streets Roads, Paratransit and Shuttles, Bicycles Congestion Relief. Mr. McAvoy reported that the Measure A share of $880 million (not including 20 percent local city share) plus $1.2 billion from other sources available equals $2.1 billion. Mr. McAvoy further reported on the effects if Measure A isn’t reauthorized and what is at stake. Currently, a new project list is being prepared and there is a Measure A outreach and reauthorization process to build a countywide consensus.

  Director Lee questioned, in reference to the Leveraging Measure A Funds slide, why the total funding doesn’t include the 20 percent local city share.

  Mr. McAvoy responded that that would entail understanding exactly how much money the 20 percent is leveraged with the cities.

  Director Lee commented it appears that the $1 billion current measure has been reported as $880 million. Director Lee suggested including the 20 percent and then later breaking it out.

  Mr. McAvoy responded that the information will be modified as we move forward.

  Mr. Scanlon stated that we could get an estimate from each city on what they have leveraged.

  Onnolee Trapp, League of Women Voters, commented that the League was very instrumental in the original Measure A both in the development and its passage. The League is very concerned about the success of the reauthorization process. There seems to be a considerable amount of confusion and lack of information in the public. The League feels that it is essential to get the word out and market the Measure to build up enthusiasm in order to get public input, which is essential. Ms. Trapp stated that the first two public meetings attracted relatively few people considering the size of the population that may vote in the November 2004 election. The third meeting is coming up and the League wished that there was some way to communicate the details of the meeting earlier in the process because the League, for example, was not able to publish the details such as the location and time because it was not known in time for a publication deadline. Ms. Trapp also commented in regards to the Measure A workshop in February and noted that once again the information was not known before a publication deadline. The League is also concerned with how the consultants are fitting into the picture.

  Director Lee questioned whether the League was aware of the meeting in Redwood City on January 24.

  Ms. Trapp responded that the League is aware. However, at the time of press the location and time was not available.

  Chair Church stated that the date of the February Measure A workshop would be scheduled as soon as possible so that the time and date can be disseminated. Chair Church questioned whether there was budget for some newspaper ads.

  Mr. Scanlon responded that staff would run newspaper ads. Additionally, there has been some very good free press. Mr. Scanlon noted that electronic media has also had excellent coverage.

  Director Guingona questioned how many people attended the Daly City meeting. As he recalled there was a significant amount of people present.

  Director Panza commented that a majority of the people there were included were people already involved.

  Mr. Scanlon stated that if the words gets out and the people decide not to come, it may not be bad news. However, there needs to be attempts to make it known what is going on and that this is an investment for this county and is not just a tax per se.

  Director Lee recalled that the people in the focus groups said that they didn’t know about Measure A.

  Mr. Scanlon stated that that was correct. Extensive focus group work was completed at the very beginning of this process.

  Ms. Trapp urged the board to make a decision for the date and time of the Measure A workshop so that the public will know about it.

  Pat Dixon commented that she has a column in The Pilot, a local publication, and has already advertised the meeting on January 24. However, Ms. Dixon stated that 10 a.m. is a little early for those who work on Saturdays and would have preferred the time frame of 1-3 p.m. Ms. Dixon also suggested calling Hiller Aviation Museum and ask them to put the date on their sign. Ms. Dixon reported that she has a publication deadline next week and would like to have the location, date and time of the workshop in February because The Pilot is received by 10,000 people. Ms. Dixon also stated that she controls the sign boards and will put the Redwood City meeting on it. Further Ms. Dixon commented in reference to Mr. McAvoy’s presentation and noted the use of the word "currently" while referencing that BART is not currently funded. Ms. Dixon cautioned staff to be very careful with wording.

  Doris Maez, San Bruno, questioned if what would be taken to the MTC would already include the project list.

  Mr. Scanlon responded yes. However, Mr. Scanlon clarified that it has to be taken to the MTC first before it goes to the cities.

  Ms. Maez stated that there doesn’t seem to be a lot of time and opportunity for public input in the compressed timeframe. Ms. Maez questioned if changes were possible after it goes to the MTC.

  David Miller, Legal Counsel, stated that MTC’s role is limited to reviewing the draft plan to ensure it conforms with the Regional Plan and does not substitute its discretion for the wisdom of the projects included in the draft plan.

  Ms. Maez questioned whether the public presentations that the staff will be making between now and June could have an impact.

  Mr. Scanlon commented that the public presentations that he referenced will be between January through the early part of March. The time is now to get the public input. Mr. Scanlon stated that although there were excellent suggestions from the first couple of meetings, there is no anticipation to receive a lot of brand new ideas. However, there is plenty of time to get public input to mesh into what has been received from the technical group on the technical track.

  Ms. Maez stated that early on there was a stakeholders group that met but it seems to have fallen apart.

  Mr. Scanlon commented that there is an effort now to bring back that stakeholders group. The TA is still the agency charged with the responsibility for coming up with this Measure. There are other groups that are going to be raising funds and doing the advocacy for the Measure. However, they are not part of the group that is going to say what is in the Measure.

  Ms. Dixon further questioned if there was a specific day of the week that the meetings are set for.

  Mr. Scanlon informed Ms. Dixon to work with Rita Haskin. However, the board workshop would be held onSaturday.

1. Receipt of San Mateo County Transportation Authority Management Letter for the Fiscal Year Ended June 30, 2003 and Comprehensive Annual Financial Report

   Stan Arend, Director of Accounting, stated that this report has three sections; introductory, financial statements and statistical data. Mr. Arend reported that the financial statements section audit report has an unqualified opinion and a representative from the County of San Mateo was present at the meeting if there were any questions about the audit work and results. This year the letter on the administration on the finances of the TA, from the auditors, had no reportable conditions for the third year in a row. The report is submitted to the Governmental Finance Officers Association for an award in excellence in financial reporting, which the TA received last year and staff believes that this year’s CAFR also will earn the award.

   Director Galligan thanked staff for allowing him to sit in on the exit meeting with the auditors. Director Galligan also believes the TA will received another certificate of achievement in excellence because the TA had a timely report. Director Galligan clarified that the unqualified opinion can be defined as a clean opinion, which is good. The management letter is also extremely important because it includes the TA’s basic responsibilities and any departures from significant account policies or estimates. Director Galligan pointed out a benefit of the TA selecting an independent auditor that is different from the one employed to audit the San Mateo County Transit District and the Peninsula Joint Powers Board. There are certain formulas and estimates used to allocate overhead costs between the three operations administered by the District (SamTrans bus, PCJPB Caltrain and the TA) and auditors review these methods during the annual independent audit. Having the auditor performing the District and PCJPB audits and the San Mateo County Controller performing the TA audit both review the estimates and allocations provides an important cross-check concerning the validity of the methodology.

   The motion to receive the CAFR passed unanimously.

   Mr. Scanlon also thanked staff for its work with the County Controller’s office. Mr. Scanlon also noted the new TA logo on the cover of the report.

   Director Galligan also commented that going into the reauthorization the TA needs to be as clean as possible.

   Mr. Scanlon stated that it is a report that can proudly be distributed to show what has been done with TA money.

Director Panza commented in regard to funding for transportation in the near future. The State Transportation Improvement Program (STIP) that is being put together is not really providing any further funding. Therefore, C/CAG has turned to the TA for help in carrying through the low time. On the C/CAG agenda there is an item pertaining to a commitment of TA funds.

Mr. Goode commented that the agenda item pertains to a project in the program, the auxiliary lanes from Third Avenue in San Mateo up to Millbrae Avenue in Millbrae, that has been programmed for a portion of the funding from the STIP. As a result of the fiscal pressures at the State level, they are in the process of delaying those State funds. What is proposed is that if local funds can be made available, the State and the local agency enter into a 3090 agreement, which provides for the State portion of the funding to be advanced and then to be repaid from the STIP funds in a future year. For this particular project, the TA would provide its funds so the project can go into construction and be completed. The TA would then be reimbursed a year later for the funds from the STIP.

Richard Napier, Executive Director of C/CAG, clarified that the State said there was no money to program and gave C/CAG targets for each year. A request will be made to the TA board asking for consideration of front funding the Third Avenue to Millbrae project with a 3090 agreement.

Mr. Scanlon reported to the Board that staff will recommend approval of the request.

REPORT FROM LEGAL COUNSEL

None at this time. However, Mr. Miller noted the presence of Kristen Lamson and Allison Schutte, who are also on-call to help with regard to Measure A education.

WRITTEN COMMUNICATION TO AUTHORITY

The communication packets were distributed to the Board members.

DATE/TIMEOF NEXT MEETING:

Thursday, February 5, 2004 5:00 p.m. at the SamTrans Administrative Building, 1250 San Carlos Avenue, San Carlos, CA 94070