Malcolm Dudley, Atherton, said Atherton and Broadway have been committed to the train and yet they are losing service. Results from a local Atherton survey showed, convenience and destinations were more important than speed of service. He asked the Board to schedule a special meeting to discuss the elimination of the hold-out status within the year and also to fund a shuttle program equivalent to the service provided in 2002 for a two-year period.

Rosalie O'Mahony, Burlingame City Council, said Burlingame is a model for transit-oriented development because 24 percent of residents live within a quarter-mile of the Broadway station. She requested the Board hold a special meeting to discuss elimination of the hold-out status for Broadway and Atherton stations. She also requested shuttle service from Broadway to the Millbrae station. She said she wants the same treatment given to College Park station. Burlingame residents voted in support of Measure A with the assumption that service would be provided to Broadway station.

Mike Coffey, Burlingame City Council, said the projects to eliminate the hold-out status at the Broadway and Atherton stations need to be completed, which were promised to be done with Measure A funds. He said San Mateo County has paid its share of the Caltrain right-of-way purchase while the other Caltrain partner counties, who receive more of the service, still have not reimbursed San Mateo County.

James Janz, Atherton Town Council, said train service was reduced to Atherton station in 2002, which caused ridership to decline and now service is suspended at the station because of low ridership. He said it is important to Atherton residents to have service at Atherton station. He asked the Board for funding to eliminate the hold-out status for Atherton and Broadway stations.

Jeff Carter, Burlingame, said a co-worker moved to Burlingame specifically to be within walking distance from the Broadway station and now is unhappy that the Broadway station service will be suspended. He also asked the Board to hold a meeting to move forward projects that would eliminate the hold-out status at Broadway and Atherton stations. He said that ridership is low at Broadway because service was reduced. He also said 63 percent of people access the Broadway station by walking.

Bill Conwell, Atherton Mayor, said Atherton station needs to have the hold-out status eliminated. He asked for the Board to fund a shuttle service to the station.

Ross Bruce, Burlingame, reiterated there are a high percentage of riders accessing the Broadway station by walking. He requested the Board consider funding the projects to eliminate the hold-out status for Broadway and Atherton stations within a year.

Jim Bigelow, Menlo Park Chamber of Commerce, said the Metropolitan Transportation Commission (MTC), along with other agencies, will tour the Dumbarton rail corridor on May 26 to look for potential station locations and possible areas for transit-oriented development. He said under MTC Resolution 3434, grants will become available for transit projects such as Dumbarton.

Jerry Carlson, representing the Atherton Civic Interest League, said the service was suspended at Atherton and Broadway stations because they are hold-out stations. Mr. Carlson said plans have already been developed to eliminate the hold-out status for the stations. He asked the Board to have this issue added to their agenda to discuss further.

Jack Ringham, Atherton, said initially the plans to eliminate the hold-out status of the Atherton station were to be implemented in FY2006. Later, the plans were deferred to FY2007. He said because the Baby Bullet service operates in the morning and evening commute hours, he suggested operating a shuttle service for Atherton and Burlingame during the hours of Baby Bullet service and having a local train during the remaining hours when the hold-out status should not be an impediment.

Terry Nagel, Burlingame City Council, said Burlingame is committed to smart growth. She said the reasons given for suspending service to Broadway and Atherton included reductions in ridership numbers and because both Broadway and Atherton are hold-out stations. She said ridership was much higher before service reductions and the hold-out status could be eliminated with the funding of station improvements. She said San Mateo County had the greatest amount of service reductions. She asked the Board to fund a shuttle program until Caltrain service can be restored.

Duncan Jones, Atherton Public Works Director, said if the funding was provided, Atherton would be willing to manage the construction project for elimination of the hold-out status for Atherton and Broadway stations.

Chair Church said the decision to reduce service was made by the Joint Powers Board and not this Board. Additionally, this item was not agendized for the TA, which precludes this Board from taking any action.

Michael Scanlon, Executive Director, said the Joint Powers Board, comprised of representatives of three counties, has a $13.6 million deficit and the future operation of the train is in jeopardy. Although the Transportation Authority and its financing mechanisms, the original Measure A and the reauthorized Measure A, is closely related to the JPB, they are separate and distinct entities. It was apparent to the JPB, from passenger counts, that people were drawn to the Baby Bullet trains. Ridership and revenue have grown significantly since the implementation of Baby Bullet. The JPB took action to implement a schedule with faster service and a fare increase with hopes of saving Caltrain.

The TA is the trustee of San Mateo County's Measure A funds and primarily funds capital improvements and shuttle services. In 2009 there will also be operating money available for Caltrain with the new Measure A. Through the capital planning process, it was decided to construct interim outside boarding platforms for a series of stations including Broadway and Atherton. Design for the Broadway and Atherton stations are approximately 65 percent complete. The proposed budget includes continuing design of these interim platforms. Staff expects to have the design phase completed by the end of this calendar year. At that time, the TA would have to decide whether the platforms should be built.

Mr. Scanlon said he did not see a need to hold a special Board meeting because the budget includes the funding to complete the design phase of the interim platforms for both Atherton and Broadway and also includes funding for the shuttle services, which will be brought to the Board for action at the June 2 meeting.

Director Lee asked if there was funding available for the construction phase of the project.

Mr. Scanlon said because the design phase has not been completed, the cost of the construction phase is unknown. Therefore, the funding for construction has not been identified. Mr. Scanlon said that a grade separation at Broadway would be the best long-term fix. With Atherton, there have been new developments with Dumbarton Rail Project, which may cause widening of tracks and other issues could have significant impact on the Atherton station.

Director Lee asked if the TA would fund the construction to eliminate the hold-out status of both Broadway and Atherton stations.

Mr. Scanlon said once the design is finished, the item would be brought to the TA for consideration.

Chair Church requested to take agenda items 10(b), Call for a Public Hearing for the Proposed Capital and Operating Budgets for FY2006, and 10(c), Distribution of FY2006 Capital and Operating Budgets for FY2006, out of order.

CALL FOR A PUBLIC HEARING AT THE JUNE 2, 2005 MEETING ON THE PROPOSED CAPITAL AND OPERATING BUDGETS FOR FISCAL YEAR 2006
Gigi Harrington, Chief Financial Officer, said staff requests the Board set a public hearing on June 2 to consider adoption of the proposed FY2006 capital and operating budgets, which have been distributed for review.

The motion to set the public hearing for June 2 was unanimously approved.

PROPOSED CAPITAL AND OPERATING BUDGETS FOR FISCAL YEAR 2006
Ms. Harrington gave a presentation on the operating budget, including TA revenues totaling $73.5 million, program expenditures totaling $24.6 million, transportation systems management funding and the Paratransit Trust Fund.

Joe Hurley, Director, Transportation Authority Program, gave a presentation on the capital budget, including project operational/cost analysis, project study reports, preliminary engineering/environmental phase work, design work and construction of projects during FY2006.

Director Galligan asked for inclusion in the projected FY2006 expenditures of the Outside Boarding Platforms & Track/Sign Improvements - Burlingame, Interim Outside Boarding Platform Improvements - Burlingame and the Interim Outside Boarding Platform Improvements - Atherton projects.

CITIZENS ADVISORY COMMITTEE (CAC) REPORT

• CAC Chair Larry Shaine acknowledged all CAC members present and reported on the last CAC meeting:
1. Director Foust attended the last CAC meeting.
2. The CAC is concerned with what may be a lack of detailed public input and review of some of the Caltrain capital projects. The CAC will be looking to have the project managers give presentations at upcoming meetings.
3. Eric Olaffson, Senior Planner, gave a presentation on environmental planning and the various legal requirements that must be satisfied before a project can move forward and how citizens can get involved.
4. Agenda item 10(a) was discussed but no formal action was taken.
5. Agenda item 10(b) had unanimously support.
6. Agenda item 10(d) had unanimously support.
7. Agenda item 10(e) was briefly discussed but no formal action was taken.
8. The CAC is currently recruiting for three vacancies. Interviews will be held May 26 and a recommendation will be brought to the Board at the June 2 meeting.

1. Directors Lee and Panza will sit on the interview panel for the CAC interviews on May 26.
2. The Strategic Plan Subcommittee last met April 13. They will have their next meeting within the upcoming months.

JOINT POWERS BOARD REPORT
Michael Scanlon, Executive Director, reported on the April 7, 2005 JPB meeting:

• Sue Lempert, MTC Liaison, said that MTC was able to locate an additional $9 million for Caltrain, BART and other agencies. The funds come from a one-time source and can be allocated only to projects that are already in progress. Ms. Lempert said MTC has been served with a lawsuit by a variety of groups who claim that funds are being allocated to BART and Caltrain in a manner that discriminates against low-income and ethnic minority transit riders. Ms. Lempert said at the end of May the Joint Policy Committee will be taking a tour of the Dumbarton Rail Corridor, specifically looking for possible Transit Oriented Development sites.
• Performance Statistics for March 2005
1. Average Weekday Ridership was up 12.2 percent, from 25,941 riders to 29,118.
2. Total Ridership was up 17 percent from 686,660 riders to 803,654.
3. Total Revenue was up 22 percent from $1.6 million to $1.9 million.
4. On-Time Performance was up 17.3 percent from 82.6 percent to 96.9 percent.
5. Shuttle Ridership was up 22.1 percent from 3,497 riders to 4,271.
• The additional morning southbound bullet is attracting over 400 riders. The additional afternoon bullet is growing ridership gradually. The train runs at a time that is not ideal for some riders but it operates without additional crews or expenses.
• SBC Park baseball service ridership has increased 22 percent versus last April.
• Fuel prices continue to be a problem. Gas prices have been over budgeted amounts for the past ten weeks.
• The monthly Safety and Security Report was distributed. In conjunction with Operation Lifesaver, Caltrain will be participating in an Officer-on-the-Train event on May 18 from Redwood City to Menlo Park.
• The Board approved the following actions:
1. Authorization to Execute a Lease Addendum to Extend Lease of Warehouse at 4000 Campbell Avenue in Menlo Park Until December 31, 2009.
2. Approval of Construction and Maintenance Agreement with City of Brisbane for the Tunnel Avenue Overhead Bridge Project.
3. Authorization to Execute a Change Order to the Contract with Drill Tech Drilling and Shoring, Inc. for Additional Grouting of Tunnel 3.
4. Authorization for Filing of Applications to MTC to Program Federal Funds for Caltrain Capital Projects.
5. Award of Contract to Viacom Outdoor Group, Inc. for Exterior Train Advertising.
6. Rejection of Low Monetary bid as non-responsive and authorizing award of contract for providing rail signal equipment.
7. Approval of the proposed disadvantaged business enterprise (DBE) overall annual goal for FY2006.
• The Board received the following informational items:
1. Submittal of a Five-Year Prioritization Program (5YPP) to the San Francisco County Transportation Authority as a Condition for Receiving Proposition K Funds.
2. Distribution of FY2006 Operating Budget.
3. The monthly Safety and Security Report was distributed.

COOPERATIVE AGREEMENT WITH CALTRANS FOR MITIGATION PLANTING PROJECT FOR ROUTE 101 AUXILIARY LANES BETWEEN MARCH ROAD AND ROUTE 92
Jim McKim, Senior Engineer, said staff recommends the Board authorize the Executive Director to execute a Cooperative Agreement between the Transportation Authority and Caltrans for an amount of Measure A funds not to exceed $3,055,000 for the design, construction, and annual monitoring of the mitigation project over five years to address wetland impacts associated with the Route 101 Auxiliary Lanes Project between Marsh Road and Route 92. Implementation of the project will result in the restoration of 8.7 acres of tidal wetland habitat. Execution of this Cooperative Agreement will allow Caltrans to move the mitigation project into the advertising and bid phase.

Director Foust asked if the $3 million already had been allocated for the project.

Mr. McKim said the amount has been budgeted and this action authorizes the agreement between the TA and Caltrans.

The motion to authorize the cooperative agreement was unanimously approved, by roll call, and Resolution 2005-4 was adopted.

AUTHORIZATION OF PARATRANSIT TRUST FUND ALLOCATION
Chester Patton III, Director of Bus Transportation, gave a presentation that included Paratransit Trust Fund history, services, system growth, rising costs, future demands and transition to the new Measure A.

Mr. Patton said staff recommends reallocating to essential annual paratransit operations and services funds previously provided to supplement the Paratransit Trust Fund. This would protect the established policy of ensuring the preservation of $25 million in the Trust Fund, as required by the current Measure A. The funds would be allocated back to essential ongoing paratransit operations in incremental amounts of approximately $1.5 million per year for Fiscal Years 2006 through 2008 and approximately half that amount in Fiscal Year 2009.

The implementation of this policy will preserve the current level of paratransit service provided by SamTrans.

The motion to authorize the Paratransit Trust Fund allocation was unanimously approved, by roll call, and Resolution 2005-5 was adopted.

ANNUAL ADOPTION OF INVESTMENT POLICY
The motion to accept the annual adoption of investment policy was unanimously approved, by roll call, and Resolutions 2005-6 and 2005-7 were adopted.

REQUESTS FROM THE AUTHORITY
Director Gordon said the groundbreaking for the Devil's Slide tunnel will be held May 6 at 3 p.m. at the Half Moon Bay Brewery.

Director Galligan said Mark Simon, Special Assistant to the CEO, will be meeting next week with Atherton and Burlingame city officials to discuss shuttle services from the Atherton and Broadway stations.

REPORT FROM LEGAL COUNSEL
David Miller, Legal Counsel, said MTC has been served with a lawsuit by a variety of groups who claim that funds are being allocated unfairly. The suit's contention is that those decisions led to a disproportionate impact on people of color and otherwise disadvantaged persons. Mr. Miller further noted that a negative outcome in the case would adversely affect the JPB and BART, which is relevant to the TA in that Caltrain is a significant priority of the current and new Measure A funds. The general counsels for the interested agencies and respective staffs will coordinate to ensure that the relevant facts are presented and the best possible defense is mounted. Mr. Miller said he will keep the Board informed of developments in the case.

WRITTEN COMMUNICATION TO AUTHORITY
The communication packets were distributed to the Board members.

DATE/TIME OF NEXT MEETING
June 2, 2005 at 5:00 p.m. at the San Mateo County Transit District Administrative Building, 1250 San Carlos Avenue, San Carlos, CA 94070