Minutes - September 4, 2003

MEMBERS PRESENT: Mark Church (Chair), Joe Galligan, Rich Gordon, 

Michael Guingona, John Lee, Lee Panza, Ira Ruskin

BOARD MEMBERS ABSENT:None

STAFF PRESENT: Michael Scanlon, Joan Cassman, David Miller, Howard Goode, 

Joe Hurley, Rita Haskin, Roger Contreras, Martha Martinez, Jennifer Buhr

Chairman Church called the meeting to order at 5:02 p.m. and Pat Dixon led the Pledge of Allegiance to the flag.

CONSENT CALENDAR

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

1. Approval of Minutes of August 7, 2003

2. Adoption of Financial Statements, July 2003

PUBLIC COMMENT

None at this time.

CITIZENS ADVISORY COMMITTEE (CAC) REPORT

Director Lee reported that last month the Board approved the appointments of three members to the Citizen’s Advisory Committee (CAC). Since then, there have been two additional vacancies. From the interviews that were conducted on July 30, 2003, the Interview Committee recommends that the board appoint Ricardo Gomez (South San Francisco) and Stephanie Wiegold (Montara) to the CAC.

The motion to appoint Ricardo Gomez and Stephanie Wiegold to the TA CAC passed unanimously.

• Doris Maez, CAC Chair, reported:
  1. Noted the presence of Pat Dixon, in the audience, who is a member of the CAC
  2. Rob Caughlin, the newest member of the CAC, was in attendance at the last meeting. Ms. Maez expressed appreciation for the speed in which the vacancies were filled.
  3. There was an informative presentation, given by Darrel Maxey on the San Bruno Grade Separation Project at the last meeting. Jim Kelly, San Bruno resident, was present at the meeting and provided public comment on the project.
  4. Also at the last meeting, there were sub-committee reports from the Land Use sub-committee, who reported on TOD.
  5. Discussion on the format of the CAC Measure A retreat. The retreat will be held on October 11, 2003.
  6. In regard to the TA agenda, there was concern over item 10(a), regarding setting a precedent for asking for more money after a project is finished.
  7. The CAC would like to get clarification on the requirements for taking action on recommendations to the board, especially when there are vacancies. The CAC would like to know what the requirement is based on, whether there is a legal reference and if the same standards apply to the TA Board and other CAC’s. The policy that the CAC follows was established in 1989 and would like to see the policy reviewed to see if it is still a valid policy.

CHAIRPERSON’S REPORT

No report at this time.

SAMTRANS LIAISON REPORT

Michael Scanlon reported that the written report from the August 13, 2003 meeting was included within the packet.

JOINT POWERS BOARD REPORT

Michael J. Scanlon reported on the actions taken by the Peninsula Corridor Joint Powers Board at its August meeting held in Legislative Chambers of San Francisco City Hall.

• Audrey Rice-Oliver was sworn in as the newest member of the JPB. Director Rice-Oliver was appointed to the JPB by the San Francisco Mayor’s Office to replace Maria Ayerdi, who is now the Executive Director for the Transbay Terminal project
• The board unanimously approved reappointment of the Brian Wilfley (Santa Clara) and Gerald Graham (San Mateo) to the JPB Citizen’s Advisory Committee.
• Director Lloyd reported that next week will be Operation Lifesaver week in California. The program is designed to reduce and eliminate trespassing and incidents at grade-separations.
• The APTA Annual Conference will be held on September 28 through October 2 in Salt Lake City.
• Director Burns reported that as part of the budget process, the Caltrain budget was put within the budget of the MTA, therefore MTA will have financial responsibility for the Caltrain Operating Budget.
• At the last CAC meeting, the two main topics of discussion involved the High Speed Rail project and the San Bruno Grade Separation project.
• Key Caltrain Performance Statistics:
  1. July average Weekday Ridership and Year-to-Date Average Weekly Ridership was down 7.8 percent, from 29,832 riders to 27,588.
  2. Total Revenue was off 7.8 percent from $1.96 million to $1.8 million.
  3. On-Time Performance off at 94.7 percent versus 97.5 percent from last July.
  4. Shuttle Ridership had an increase of 1.8 percent with 3,806 riders up from 3,740.
• There will be ambassadors at the stations for the first week of implementation for the Proof-of-Payment system.
• There was a fatality on August 7, at approximately 6:30p.m., between Morgan Hill and Gilroy. While it hasn’t been officially ruled, it is thought to be a suicide.
• The Monthly Safety and Security Report was distributed.
• Chuck Harvey gave an Update of the Baby Bullet Scheduling presentation. Highlights of the presentation included an implementation schedule, express stops, development of new train timetable and the public process.
• The Board unanimously authorized the following actions:
  1. Award of construction contract to Mitchell Engineering for San Jose Diridon Station Ramps, Platforms and Track Improvements in the amount of $4,517,037.
  2. Rejected the bid submitted by McGuire & Hester of Oakland as non-responsive to the bid requirements and approved the authorization to award the subject contract to Stacy & Witbeck, Inc. of Alameda for $2,917,137.
  3. Approved the outlined positions to be authorized to provide fare enforcement, provided that training requirements are completed by the authorized persons.
  4. Approved the schedule of fines for violations of fare evasion provisions as follows:
  • $50 plus court costs for first violation
• $125 plus court fees for second violation

• $250 plus court fees for third and subsequent violations

These actions further support previous Board-approved changes to fare collection and enforcement procedures resulting in Caltrain’s transition to a Proof-of-Payment (POP) fare system effective September 22, 2003.

REPORT OF THE EXECUTIVE DIRECTOR

• Michael Scanlon commented in regards to the San Bruno Grade Separation Project, since it has been a topic at the CAC meetings and in the newspapers. About a year ago the TA bought the property at the San Bruno Lumber Yard as an advance acquisition for a piece of property that is critical for putting in a grade separation of three streets; San Bruno Avenue, San Mateo Avenue and Angus Avenue. This is a critical intersection for a grade separation and has long been the goal of the railroad to get the intersection grade separated because there have been numerous fatalities. Staff has been authorized to do a project review of the intersection and have been working with the City of San Bruno. A number of alternatives were discussed but the City chose Alternative Five, from among other alternatives, and at that point, appointed a committee to work with District staff on refining Alternative Five and try to develop a conceptual design for the grade separation. Over the past year the city’s CAC has held many meetings, all noticed in accordance with the Brown Act. The location became the most desirable place to also locate the station because as the grade separation is built, the present location of where the station is will have structure to support the tracks. On August 12, the San Bruno City Council approved the preliminary conceptual design of the structure. There are a number of people that live in San Bruno that seem to be confused that this is a station relocation, which is not the case as it is a grade separation project. In order to have a level station, the station needs to be moved about 2,500 feet as part of the grade separation project.

• Howard Goode, Chief Development Officer, gave an update on the Measure A Reauthorization. The Authority staff has been working with the C/CAG Technical Advisory Committee (TAC) on what would be the ingredients for a reauthorization of the Measure. In the late spring, there was a call for nominations to be included in the plan. There is a range of projects that were included on the list. The project list was broken down into categories of Highways, Pedestrian Bicycle Facilities, Grade Separations and Transit projects. Most of the requests were for Capital but there was also a fair amount for Operating. The total across all categories of submissions is $3.2 billion. Therefore, the projects that were identified exceed the amount of anticipated funding available. The TAC felt that prioritization would need to be done specifically in the Highways and the Transit categories since that is where the majority of the projects came from. Therefore, the TAC created two sub-committees to recommend back to the full TAC a way of prioritizing the projects listed within those two categories. From what the sub-committees report, the list as a whole will be evaluated for prioritization for the anticipated funding that will be available.

Director Lee questioned whether Federal and State funds would be made available, along with Measure A funds, for the projects.

Mr. Goode clarified that Director Lee was correct in that there would be Federal and State funds along with Measure A funds.

Director Panza commented that there needs to be a revision on the policy concerning what portion of the projects are funded by the TA. For instance, the grade separations have basically been 50 percent, and maybe there needs to be an establishment of percentages for projects the TA funds, which may change what has been currently done.

Director Gordon questioned why all cities were not included on the list and whether that was because they chose not to respond.

Mr. Goode commented that the invitation was sent to all cities to participate in the process.

FINANCE

Amendment to the Ralston, Holly, Harbor Grade Separation Agreement and the FY2004 Capital Budget

Staff believes this action item to be the final action necessary for this project. The recommendation provides for an increase of $750,000 for the purpose of close-out. Within that $750,000, there are two pieces. The first piece involves $328,500 for JPB costs relating to the resolution of the warranty bond issue and final property conveyances required for the project closeout. The second piece involves $396,500 for account for the interest costs associated with the delayed payments to the JPB since the JPB has been carrying the expense of its unreimbursed Project costs and the TA has benefited from interest on the retained funds.

Therefore, staff recommends that the Board authorize an increase by $750,000 the final allocation of Measure A funds to the Project changing the total allocation from $60,166,667 to $60,916,667 and amend the FY2004 Capital Budget to add $750,000 to Ralston, Harbor, Holly Grade Separation line item.

Director Panza commented that the $396,500 in interest seemed high. $2 million over two and half years at five percent is only around $267,000 and the projection in the staff report is at almost $400,000. Director Panza questioned how the sum was calculated.

Roger Contreras, Chief Financial Officer, clarified that the interest was not over two years but since the inception of the project, which was in 1998.

Director Panza questioned whether there was aggregate interest on payments since the beginning of the project.

Mr. Contreras commented that there is a breakdown for each year of the project.

Director Panza requested clarification in that the amount is more than just the interest on the $2 million.

Mr. Contreras clarified that it is interest on $2.271 million starting in 1998 and it is an aggregate every year.

Director Panza questioned why it was from 1998 rather than from 2001.

Mr. Contreras commented that 1998 was when the JPB started making payments on behalf of this project and did not get reimbursed. In other words, if the TA had made the payments, the JPB would have earned this interest rate.

Director Panza stated that the information provided of Mr. Contreras doesn’t correlate to what is within the Staff Report. The Staff Report talks about the April 2001 allocation that wasn’t made and it’s not really clear.

Mr. Contreras commented that under Background, the Staff Report states that the action includes an allocation of $396,500 for the JPB to cover the expense of reimbursed Project costs.

Director Galligan questioned what interest rate was used.

Mr. Contreras reported that in 1998 it was 5.95 percent, 1999 it was 5.7 percent, 2000 it was 5.59 percent, 2001 it was 5.7, 2002 it was 4 percent, 2003 it was 3.5 and in 2004 it was 3.2 percent.

Director Lee questioned that since the TA didn’t pay in a timely fashion, now the TA needs to pay the interest that would have been earned had it been paid. But the TA also earned interest so there is a net number.

Mr. Contreras clarified that the amount is the exact amount that the TA would have earned otherwise.

Mr. Scanlon stated that the TA did earn the interest.

Director Lee clarified that the TA earned the interest and now are paying it.

Director Galligan questioned what the $328,500 was for.

Mr. Goode had a breakdown of the costs. The bulk of the amount had to do with the Right-of-Way transactions and getting the documentation and research on the properties. There was also a component that had to do with the resolution of the warranty issue and the survey’s of the facility to make sure its integrity was being maintained. There were also some costs associated with the physical close-out of the project construction.

The motion to approve the Ralston, Harbor, Holly Grade Separation Project Modifications to the Final Amendment to the Grade Separation Development Agreement and the Amendment to the FY2004 Capital Budget was approved unanimously, by roll call, and resolution 2003-15 was adopted.

PROGRAM

Quarterly Capital Projects Status Report

Joe Hurley, Director of the Transportation Authority Program, reported in regard to the distributed Quarterly Capital Project Status Report. Key highlights of the presentation included updates and details of the following projects:

1. 101 Marsh Auxiliary Lane Project between Marsh and Ralston. This project will help alleviate traffic congestion along the 101 corridor
2. Oyster Point Interchange Project. This project is for the highway improvements at the Oyster Point Interchange on Route 101. Improvements are being done in order to provide relief to freeway traffic congestion in the vicinity.
3. 3^rd to Millbrae Auxiliary Lane Project. This project is for preparation of the project report (PR), the environmental documents, and final design for the addition of an auxiliary lane in both directions of Hwy 101 between 3^rd Avenue and Millbrae Avenue.

Director Panza questioned whether the final phase of the Oyster Point Project included the hookramps.

Mr. Hurley responded that the hookramp component has already been advertised and is about to begin construction, so they are in the second half of that stage. A wrap-up on the project is projected for next summer.

REQUESTS FROM THE AUTHORITY

None at this time.

REPORT FROM LEGAL COUNSEL

David Miller reported in regard to Ms. Maez’s comments regarding the attendance policy of the CAC. Mr. Miller commented that he will be available to talk about the voting policy of the boards and other governing boards.

WRITTEN COMMUNICATION TO AUTHORITY

The communications packets were distributed to the Board members.

DATE/TIME OF NEXT MEETING:

Thursday, October 2, 2003, 5:00 p.m. at the SamTrans Administrative Building, 1250 San Carlos Avenue, San Carlos, CA 94070

ADJOURNED: 5:50 p.m.