Minutes - June 6, 2002

MEMBER ABSENT: Mark Church (Vice Chair)

STAFF PRESENT: Michael Scanlon, David Miller, Roger Contreras, Chuck Harvey, Aurora Jose, Jim McKim, Susan Stark

Chair Guingona called the meeting to order at 5:05 p.m. and led the pledge of allegiance.

PUBLIC HEARING

Susan Stark, Director of Finance and Budgets, reported revenues for FY 2003 are anticipated to total $71.3 million. Sales tax receipt represents 53 percent of said amount or $59.2 million. Interest income is at 16 percent or $11.5 million. Rental is one percent or approximately $600,000. Ms. Stark compared the proposed FY 2003 Budget with FY 2002. She discussed the expected decline in the sales tax revenues of $11.3 million and interest income of $2 million. She pointed to the transfers of the paratransit trust fund into the Authority’s General Fund in the total of $4 million, of which special allocation $1.9 was made to SamTrans to fund the Paratransit activities in San Mateo County. She noted the bond principal payment of $7.2 million. She also discussed various expenditure line items that were reduced, such as the allocation to local entities, paratransit, Dumbarton maintenance of the right of way, the TSM fund, and the San Mateo Caltrain Shuttle Program. Ms. Stark advised that staff will bring to the Board recommendations for the FY 2003 specific programs at a subsequent meeting.

Jim McKim, Acting Program Manager, presented the additional budget appropriation in the Capital Budget for FY 2003 that includes $15.4 million for Caltrain projects. He identified the various projects that fall under this category, among which are the TA Caltrain projects, railroad grade separations, interchanges and auxiliary lanes, oversight that includes strategic planning, and C/CAG Congestion Relief Plan. Mr. McKim also discussed the cash flow for FY 2003. He stated although the capital project approval is required in the amounts estimated to fund the Authority’s share of the projects through completion, it is not possible to literally complete most capital projects in a single fiscal year. So, for planning purposes, staff prepared a cash flow projection for the upcoming fiscal year. Mr. McKim identified the major expenditures anticipated for next year that includes local share, Caltrain maintenance facility, Burlingame Station, San Bruno Station platform and track design, streets and highways. The total estimated cash flow for FY 2003 is $42.1 million.

Chuck Harvey, Chief Operating Officer, gave an overall presentation on the Redi-Wheels paratransit and the Coastside Opportunity services. He talked about the history of the service that started in 1977, a decade prior to the passing of the Americans with Disabilities Act by the Federal government, the birth of the Transportation Authority and the explosive growth of the system and its ridership. He stated the cost of paratransit service directly relates to the ridership. It is the most expensive service in the transportation field. All year long, there has been a double-digit monthly increase in ridership, putting a strain on the system. Mr. Harvey described the tremendous amount of efforts put in by staff and the cost associated with meeting the ADA mandate of zero trip denial. He said the fleet started with 19 lift-equipped buses. Today, the system has 63 minivan, 13 sedans, and two road supervisor vehicles. Costs of these vehicles are funded by Federal and State grants. Mr. Harvey discussed the taxi pilot program that is now in place.

Director Lee remarked the ADA mandate of zero denial is statistically not logical. Mr. Harvey responded the Federal government ruled that all ADA clients are entitled to an equal opportunity in the access to transportation. The program is very costly but the Federal government considers it discriminatory to deny those that are difficult to serve.

Roger Contreras, Chief Financial Officer, reported Measure A approved by the voters in 1988, instituted a half cent sales tax increase for 20 years to fund a variety of programs in transportation. It also established a $25 million paratransit trust fund. The purpose is to use the interest income to fund paratransit activities. Mr. Contreras outlined the activities involved in the fund balances and the augmentations made to the fund coming from increases in sales taxes estimated to be received through the life of the fund. This year, it has been determined that there is a decrease in the sales taxes that will be received over the life of Measure A. The budget shows a dramatic decrease in the funding of the paratransit trust fund. Mr. Contreras advised that the $25 million is not available because that is the corpus of the fund. He brought up the $3.9 million that was set aside by the Board as inflation protection. He said this money is available. He pointed to the projected cost of $8.1 million for the year 2003. He also itemized the contributions of SamTrans to the program, the TDA and STA monies and the interest income that paratransit gets from the fund under Measure A. Mr. Contreras underscored that compared to last year’s budget, FY 2003 Budget shows a decline of $11.3 million in sales taxes for SamTrans. Paratransit relies heavily on sales taxes. Therefore, because of this decline, the $1.9 million Special Allocation to SamTrans is needed to fund the ADA programs. He stated if the Board approves the special allocation, the funds will be coming out of legally permissible funding.

At this point, the Board Secretary, Aurora Jose, reviewed the steps taken in order to inform the public of this public hearing. No correspondence has been received from the public.

Director Guingona called for anyone from the public to speak. Hearing none, the Board unanimously voted to close the public hearing.

Legal Counsel David Miller advised that the Board has afforded the public an opportunity to comment in writing or testify on the proposed budget. All legal requirements have been satisfied. The Board may act on the budget as presented.

Because people from the coastside are farm workers and have no other alternatives, Director Panza expressed concern on the reduction of the funding under Exhibit 2. He proposed keeping the present level of funding for the Coastside Opportunity Center. That would mean taking the money from the General Funds referred to as the inflation fund.

Director Gordon asked if the Coastside Opportunity Center knows about this move and if they have any plans to make adjustments in order to continue the level of service.

Mr. Contreras responded no communication was received from Coastside and he knows that Coastside also has reserves for contingencies.

Director Lee remarked money is limited and everybody is a player. The economic crisis is countywide. This is a tough program and everybody has to share.

Director Galligan suggested if there has been no outcry about this, that the Board act on the budget as proposed. Budget adjustments can always be made after today.

Mr. Harvey clarified many of the services provided on the coastside are contracted with the San Mateo County Transit District. There are existing operating agreements on Routes 15 and 17 and many of the paratransit services. None of those services will be impacted. Coastside also operates some community-based type services. In view of this, he recommended Board approval of the proposed budget, and if a problem is identified later, staff can come back to do an adjustment for their community-based work. At this time, staff is not aware of any problem.

Hearing the foregoing, Director Panza withdrew his suggestion.

Director Ruskin advised staff to let the Board know of any logistic problems so that the Board may be able to act accordingly.

Director Panza inquired about programs that are wrapping up that are not going to show in next year’s budget. He asked Mr. Contreras what would happen to the $5.6 appropriations that have been made. Mr. Contreras responded it will increase the fund balance and it will be reflected in the schedule that will be presented in the monthly report. Later on, that amount will be available for subsequent appropriations by the Board.

Director Galligan asked if the money would go from the designated fund balance to the undesignated fund balance. Mr. Contreras answered in the positive.

The Board by roll call unanimously adopted the budget (Resolution No. 2002-11).

CONSENT CALENDAR

The Board unanimously approved the following items on the Consent Calendar:

1. Minutes of Meeting of May 2, 2002

2. Adoption of Financial Statements, April 2002

PUBLIC COMMENT: None at this time.

CITIZENS ADVISORY COMMITTEE REPORT

Ken Colmen reported that Jim Bigelow, after 14 years, finally decided not to remain in the CAC. He expressed appreciation for Mr. Bigelow’s contributions to the CAC.

CHAIRPERSON’S REPORT

Chair Guingona reported on the reauthorization committee meeting on May 20. In that meeting, he advised that a TA Committee composed of Directors John Lee, Mark Church and himself has been assigned to insure that the TA is represented in all future meetings. The TA has included $250,000 in its proposed budget for FY 2003 for public education program to lay the foundation for Measure A authorization. There was a general discussion which focused on the need for the inclusion of all interests in developing a Measure A program and there was an agreement that wide-ranging stakeholder recognition is essential to insure that the reauthorization measure attracts no organized opposition. The Committee will be meeting monthly until the Measure is authorized. This will be continuing with the members of this Board playing a key role all the way.

Attorney David Miller advised there is a mandate in the statute that directs this Authority prior to expiration of the sales tax measure, to take action to give the voters an opportunity to renew or extend it. There is a duty that exists and the corollary in expending TA funds in order to carry on that mandate is clear.

Director Gordon mentioned a document sent by Howard Goode, from Alameda County about reauthorization. He suggested providing each Board member a copy of the document.

Director Panza inquired who are the members of the reauthorization task force. Director Guingona mentioned Samceda, Board of Supervisors, League of Women Voters, Silicon Valley Manufacturers, and CMAQ.

SAMTRANS LIAISON REPORT

Chair Guingona referred to the written report that was in the packet. There were no questions from the other Board members.

JOINT POWERS BOARD REPORT

Executive Director Scanlon reported as follows:

• Thanked the Board for the passage of the budget.

• Thanked Jim Bigelow and the other CAC members who attended the public meetings on the proposed schedule changes.
• Routine measures were approved by the JPB at its meeting this morning, including application for clean air funds, support of the Caltrain Shuttle Program, Claims Administration Services, DBE Goals and the new and redesigned Caltrain web site.
• A presentation was made by Mr. Harvey on the proposed reduction of train service from 80 to 76 and by Ms. Rita Haskin to make everybody know about the Caltrain weekend shut down.
• There was a lot of discussions on the JPB budget for FY 2003. They postponed its consideration and approval for next month in order to provide Santa Clara County and the VTA representatives extra time to find sufficient funds to cover costs needed for the electrification.
• After the closed session, the Board approved the settlement of the final parcel needed for the Lenzen maintenance facility located in Santa Clara County.
• Average weekday ridership was off slightly more than 9 percent, on-time performance continues to be good at 94.2 percent. Shuttle ridership was off only 4 percent. Year-to-date, average weekday ridership is at 3.5 percent or 31,393 riders a day. Revenues are off 3.9 percent and on-time performance is standing at 95.4 percent. Shuttles at 3,900 riders a day is off 8.2 percent.

REPORT OF EXECUTIVE DIRECTOR

Mr. Scanlon reported Chair Guingona, Ian McAvoy and himself had a meeting with Half Moon Bay city officials. They agreed to set up a small committee to address some of the issues and concerns. Chair Guingona added he will appoint a subcommittee composed of himself and Director Gordon to meet with the Mayor of Half Moon Bay and their representatives and to have Caltrans at the table.

CAPITAL PROJECTS QUARTERLY STATUS REPORT – 3^RD QUARTER FY 2002

Mr. Scanlon remarked the Board members can take the report at home, study it and ask questions later.

WRITTEN COMMUNICATIONS TO THE BOARD: There were no communications received.

REPORT OF LEGAL COUNSEL: There was none at this time.

DATE AND PLACE OF NEXT MEETING: July 11, 2002 at 5:00 p.m. at 1250 San Carlos Avenue, San Carlos, California

Adjourned: 6:15 p.m.