Board of Directors

Community Relations

Finance

Legislative

Committee Members Present: Michael D. Nevin, Shirley Harris, Albert Teglia

Other Board Members Present: Jerry Hill, John Barbour, Michael Guingona, Mary Janney, Arthur Lloyd, Steve Schmidt

Staff Present: Michael Scanlon, Joan Cassman, George Cameron, Roger Contreras, Jim Gallagher, Chuck Harvey, Rita Haskin, Christina Jacinto, Aurora Jose, Martha Martinez, Ed Stewart, Bill Welch

Pledge of Allegiance

Director Hill led the pledge of allegiance to the flag.

All Committee members were present. Committee Chair Nevin called the meeting to order at 2:03 p.m.

Approval of Minutes of Community Relations Committee Meeting of March 14, 2002

The Committee (Harris/Schmidt) recommended Board approval of the minutes.

                                                                                                                                [MOTION]

Appointment of CAC Members

Director Nevin announced the Selection Committee composed of Directors Teglia, Harris and himself, interviewed seven applicants. Two more will be interviewed next week. They cannot arrive at a conclusion until the interview process is completed. The appointment will be agendized next month.

PCC and PCC Advocacy Reports

Bill Welch, Manager, Accessible Service noted the PCC, PCC Advocacy and ATAC, at their last meeting, received presentations on Strategic Planning. They provided some input on the plan. He announced Redi-Wheels, operated by MV Transportation, will be changing managers. Rich McGann will be leaving next month and John Murphy will be returning. He acknowledged Mr. McGann’s commendable works and achievement in Redi-Wheels team-building. He likewise recognized John Murphy and credited him for achieving zero denials for Redi-Wheels.

Marianne Mannia, reported the Consumer Corps Report that was distributed covers the months of December, January and February. The report shows a continuing Redi-Wheels service improvement. There continued to be no denials. The availability of comment cards in Redi-Wheels vehicles is 94 percent. The PCC is very pleased with this tremendous service improvement. On-time pick up improved to 90 percent. The most astounding improvement is the telephone access. No one among the Consumer Corps was placed on hold when reserving any of the trips. She praised Rich McGann and thanked him for his outstanding contributions to the improvement of the Paratransit system in San Carlos in San Mateo County.

Regarding fare increases, Ms. Mannia supported the need to increase the fares, with the understanding that the quality of service will continue to show improvement and there will be no reduction in service.

Citizens Advisory Committee Liaison Report

Mary Lou Ciranni, Vice Chair, reported Diana Lee, Senior Planner, gave a presentation on public outreach. The CAC suggested more outreach to students, Redi-Wheels, and express bus riders to San Francisco. The Committee discussed the proposed fare increase and other ways of generating revenues such as parking fee increases and bus shelter advertising. In summary, the CAC concurs with the proposed fare increase with the following suggestions: (1) Cost of monthly pass should be 28 times the cost of a single ride, and (2) having 12 monthly passes for the price of 11 months. Under Public Comment, David Pilpel remarked the SamTrans web site is not current and that the KX and PX express buses are lower in standard than the regular SamTrans buses. CAC Chair Kym Valente sent a letter to the Selection Committee suggesting questions she wanted asked the applicants. Ms. Ciranni announced the CAC will hold a by-monthly meeting in July.

BART Performance Report

Director Nevin announced the coming of BART to the San Francisco International Airport and to the Millbrae Station in the fall of this year.

Chuck Harvey, Chief Operating Officer, reported average weekday ridership systemwide is decreasing. It is also seeing some dip in San Mateo County. On-time performance trend line has been upward. The South San Francisco BART station is 82 percent complete. San Bruno Station is at 84 percent. Millbrae Station is 97 complete. The airport station is 99 percent complete and the air train system is going into a test mode. Shuttles suffered a larger dip. SamTrans will support the BART stations and provide passenger access on all modes of transportation. SamTrans routes will be reworked. Shuttle bus schedules also will be adjusted.  This will be taken to the Board later. Mr. Harvey also discussed the "Predictable Arrival Project". He explained the mechanics of this technology, the benefits it would bring to the system, and the source of funding. Mr. Harvey outlined the upcoming actions and presentations to be taken to the Board.

Director Nevin clarified completion at 94 percent really means that majority of the work (92 percent) is on the right of way and about 2 percent is work at the station and adding the two together makes about 94. Mr. Harvey added BART is talking about opening by the end of the year.

Multimodal Ridership Report

Mr. Harvey referred to the written report showing average weekday ridership figures. The downtrend continues. SamTrans went down 7.3 percent for the month of February 2002 as compared to the prior year. Paratransit however, is 14.6 percent more than the prior year for which he gave credit to Rich McGann and John Murphy. BART shuttles had a large percentage dip. Bayhill and Sierra Point shuttles had been seriously hit as a result of the GAP and other company lay-offs.

Adjourned: 2:25 p.m.

Committee Members Present: Mary Janney, Michael Guingona, Shirley Harris

Other Board Members Present: John Barbour, Jerry Hill, Arthur Lloyd, Michael Nevin, Steve Schmidt, Al Teglia

Staff Present: Michael Scanlon, Joan Cassman, George Cameron, Roger Contreras, Jim Gallagher, Chuck Harvey, Rita Haskin, Christina Jacinto, Aurora Jose, Martha Martinez, Ed Stewart, Bill Welch

All members of the Committee were present. Committee Chair Mary Janney called the meeting to order at 2:25 p.m.

Approval of Minutes of Finance Committee Meeting of March 14, 2002

The Committee (Hill/Guingona) recommended Board approval of the minutes.

                                                                                                                               [MOTION]

Approval of Statement of Revenues and Expenses Report, February 2002

Roger Contreras, Chief Financial Officer, reported estimate of sales tax receipts was reduced by $3.8 million from $63 million to $59.2 million to reflect the latest not too good information received from the State Board of Equalization. He itemized the accounts that were reduced and their percentages. Revenues were increased and other measures were taken to alleviate that hit. As indicated in the previous month, the budget on shuttles was increased by almost $1 million because they were not included in the original budget. Capital projects were either closed, deferred or substituted with sales taxes. Sales taxes in the amount of $7.2 million were made available resulting to a reduced deficit of $4.7 million. This plus $1 million budget savings leaves the District with a $3 million deficit. Staff continues to work towards reducing this amount.

The Committee (Nevin/Guingona) recommended Board acceptance of the report.

                                                                                                                                  [MOTION]

Request for Assistance to Provide Free Transportation to Safe Harbor Homeless Shelter Program and Modify the Lease Agreement with the San Mateo County Office of Housing

Mr. Harvey, reported the Safe Harbor Program usually ends after the winter period. Staff is recommending an extension of the shelter program to a year-round at night and to open a day-use by a limited number of the shelter residents of the Safe Harbor Facility located at the North Access Road. Currently, the lease agreement allows only a night-use.

The Committee (Nevin/Hill) recommended Board approval of the proposed actions.

                                                                                                                                [MOTION]

Resolution of Official Intent: Reimbursement Resolution to Preserve the Right to Use Bond Proceeds to Reimburse the District for Projects it Initiates

Mr. Contreras reported historically, the District made progress payments for projects on a pay-as-you-go basis. This resolution does not compel the District to issue bonds or take any other actions. It merely preserves the District’s right to issue bonds at a later date in the event that it is needed. If it becomes necessary to use bonds, staff will come back to the Board for approval.

Director Nevin questioned why this is being done only now and not earlier or later. Mr. Contreras advised this is the time to do it because in view of the economic situation, if the economy does not improve as anticipated and the District has paid cash for all the projects, this will give the District the authority to finance them retroactively.

The Committee (Teglia/Hill) recommended approval of the Resolution.

                                                                                                                  [RESOLUTION]

Award of a Contract to Bay Area/Diablo Petroleum Co. (dba Golden Gate Petroleum) for the Furnishing and Delivery of Ultra-Low Sulfur Diesel Fuel for a Five-Year Term at an Estimated Bid Price of $8,130,200

George Cameron, Chief Administrative Officer reported the firm met all the bid requirements and has been deemed responsive and responsible. He also stated award of this contract will allow the District to comply with the California Air Resources Board requirement to utilize ultra-low sulfur diesel to the District’s revenue fleet commencing July 1, 2002. Three bids were received and the price of the product is based on the Oil Price Information Service (OPIS) published pricing for diesel fuel plus an additional increment.

Director Nevin advised the Board to respect the law and do what is legal. He understands the low bid requirement of the law. He, however, expressed concern on having put this contract out for bidding for the second time. He noted for many years, staff has been pleased with the operation of the current contractor Olympian Oil. Although there is a $45,000 difference in the price, this company is based in South San Francisco. They exhibited their commitment and he felt sorry to lose that kind of relationship. He also questioned the contract period of five years and asked if it could be three.

Attorney Joan Cassman stated the contract is set up for five years. However, during the course of the contract, if the question of timely or competent performance comes up, the District can terminate the contract.

Director Hill raised the question of the change in future price. Attorney Cassman said there is a flexibility in the pricing. The price is pegged to the service and they bid a differential from that service that is indexed. She added the District has the right to terminate for default and for convenience.

Director Schmidt inquired about the financial effect to South San Francisco of losing this contract. Mr. Cameron believed it would hit South San Francisco’s sales tax revenues because the new contractor, Golden Gate has their offices in Martinez. Attorney Cassman hoped the city would have another business opportunity to fill the gap.

The Committee (Nevin/Barbour) recommended Board approval of the contract.

                                                                                                                  [RESOLUTION]

Award of Contract to Transit Resource Center for Providing Bus Production Inspection and a Quality Control Assurance Program for the Manufacture of 60-Foot Articulated Coaches for a Total Cost of $65,872

Mr. Cameron reported five firms responded to the District’s Request for Proposal. Three were interviewed. This contract has a seven-month duration and will assure that the District meets the inspection requirement of the FTA.

The Committee (Lloyd/Harris) recommended award of the contract and authorize the General Manager to execute the contract.

                                                                                                                   [RESOLUTION]

Adjourned: 2:40 p.m.

Committee Members Present: Arthur Lloyd, Michael Nevin, Stephen Schmidt

Other Board Members Present: John Barbour, Michael Guingona, Shirley Harris, Mary Janney, Jerry Hill, Al Teglia

Staff Present: Michael Scanlon, Joan Cassman, George Cameron, Roger Contreras, Jim Gallagher, Chuck Harvey, Rita Haskin, Christina Jacinto, Aurora Jose, Martha Martinez, Ed Stewart, Bill Welch

All Committee members were present. Committee Chair Art Lloyd called the meeting to order at 2:45 p.m.

Approval of Minutes of Legislative Committee Meeting of March 14, 2002

The Committee (Teglia/Hill) recommended Board approval of the minutes.

                                                                                                                               [MOTION]

State Legislative Affairs

Ed Stewart, Legislative Analyst, proposed Board support of the following bills:

• SBX3 10 (Sher): Sales Tax Exemption for Diesel Fuel. Mr. Stewart reported the State Board of Equalization (BOE) was considering expanding the sales tax exemption on diesel fuel used to transport agricultural products. That decision would have cost the state’s Public Transportation Account at least about $50 million over the course of the next year alone. This bill would have overridden the BOE. However, on March 27^th, the BOE revised its proposed regulation to limit the scope of the tax exemption. As revised it would only cost the Public Transportation Account about $16 million over the next year. With this reduction, SamTrans will be looking at a loss of $50,000 instead of $300,000 next year in state operating funds. The bill is now on the Senate floor, but may not be brought forward due to the BOE’s compromise.

• SCA11 (Murray): Loans of Transportation Revenues and Funds. Mr. Stewart stated this bill involves the Public Transportation Account (PTA). The PTA and the State Highway Account have unspent funds that are tempting targets for legislators who need to reduce the General Fund shortfall. There is currently no mechanism in State law to guarantee that state transportation funds get repaid in a timely manner when the general fund condition improves. Senator Murray has proposed a constitutional amendment that, if approved by the voters, will require the repayment of loans from transportation funds within 3 fiscal years with interest.
• AB 3788 (Longville): PRISM Bond. The Passenger Rail Improvement, Safety and Modernization Bond Act would provide an ongoing source of funds for capital rehabilitation needs for Caltrain and other passenger rail systems throughout the State. With voter approval, this would allow the State to issue $500 million in bonds over the next ten years with the proceeds of those bonds going to capital improvements for passenger rail. Caltrain would be eligible for about $2.7 million in annual funding from those bonds if this bill were to be passed and approved by the voters.

Director Lloyd clarified this includes both intercity and commuter rail. Mr. Stewart added this would also include urban rail systems, light rail, subways and BART here in the Bay area, making the bill very comprehensive. The bill has passed the Transportation Committee and its next stop is the Assembly Appropriations Committee.

• SJR 36 (Murray): Federal Transportation Funding. Mr. Stewart reported President Bush’s proposed federal budget reduces the amount of funding available for transportation next fiscal year by about $9 billion. However, Congress has been working on a budget proposal that would restore about 50 percent of that cut in funding by dipping into the cash balance that exists on the Federal Highway Trust Fund. This bill would encourage Congress to restore a portion of the Federal funding that was reduced by the Bush administration’s draft budget. Federal funding provides a large amount of revenue for both roadway and transit projects in California.

The Committee (Janney/Harris) recommended Board support of the bills.

                                                                                                                                [MOTION]

Federal Legislation

Mr. Stewart reported staff is pursuing two earmarks from Congress – one for SamTrans for the zero emission bus demonstration project that the District is pursuing with Santa Clara Valley Transportation Authority, and another for Caltrain to implement a predictive arrival system that would let people know when the train is arriving at the station or when it is delayed. Staff will be heading to Washington D.C. for a series of follow-up visits with members of the Peninsula and South Bay delegation to keep the requests alive.

Director Lloyd reported on a meeting with Senator Costa to discuss the High-Speed Rail initiative on behalf of San Joaquin Valley Rail Committee. A report will be rendered next meeting.

He noted Amtrak did not announce the discontinuance of 18 long distance routes in six months as they predicted they would. He announced Secretary of Transportation Norman Mineta will present the administration’s plan to the congress on what Amtrak’s future may or may not be. $1.2 billion will be allocated to Amtrak this year to continue operations so that 18 trains do not have to come. Four long distance trains that are here in California would be affected by these cutbacks.

Adjourned: 2:55 p.m.

Board Members Present: Jerry Hill (Chair), John Barbour, Michael Guingona, Shirley Harris, Mary Janney, Arthur Lloyd, Michael Nevin, Steve Schmidt, Al Teglia

Staff Present: Michael Scanlon, Joan Cassman, George Cameron, Roger Contreras, Jim Gallagher, Chuck Harvey, Rita Haskin, Christina Jacinto, Aurora Jose, Martha Martinez, Ed Stewart, Bill Welch

All Board members were present. Chair Hill called the meeting to order at 2:55 p.m.

CONSENT CALENDAR

The Board (Lloyd/Guingona) unanimously approved the following items under the Consent Calendar:

• Minutes of Board of Directors Special Meeting of March 1, 2002
• Minutes of Board of Directors Meeting of March 14, 2002
• Statement of Revenues and Expenses Report, February 2002

PUBLIC COMMENT: There was none on issues not related to the agenda.

Director Nevin requested that the close of this meeting be dedicated to the memory of Debbie Maruyama, a county employee and wife of Lt. Maruyama of the Sheriff’s Department, who heads the Office of Emergency Services. Lt. Maruyama was driving with his wife during the weekend on the 101 Freeway near Palo Alto. He tried to help out in the fire explosion that was taking place in another automobile. As he slowed down, his car was hit from behind by a drunk driver. As a result Debbie Maruyama died.

REPORT OF THE CHAIR

Chair Hill presented to Tom Malone, Citizens Advisory Committee, a certificate of appreciation for having unselfishly served the Committee for a total of nine years, advocating for students.

Mr. Malone thanked the Board for the recognition. He remarked he strongly advocates for the students and pointed out that families in San Mateo County need transportation to school. Most families have more than one member riding to school. The costs to those families are very significant. He urged staff to consider this in the future implementation of fare changes. He also mentioned public transportation is the key to air pollution, to moving people around and a solution to many problems in everyday life.

PUBLIC HEARING:

Chair Hill announced the purpose of the public hearing is to consider the proposed SamTrans fare adjustments within the District’s Codified Tariff.

Chuck Harvey, Chief Operating Officer reported at the meeting of February, the Board ratified the setting of today’s public hearing. The purpose of the public hearing is to receive testimony on the proposed changes to the Codified Tariff, which is scheduled to take effect on August 25, 2002. He gave a brief overview of the proposal. He said the last fare increase was four years ago. Inflation is close to 20 percent. Revenue is down more than 11 percent this year. Sales tax receipts for FY 2003 will be down by $14 million. Many containment measures are under way to reduce the deficit.

Mr. Harvey outlined the extensive public comment process that was adopted to inform the public of this projected fare increase. Two of the public meetings that were held had zero public attendance. There were 10 attendees in South San Francisco. He reviewed the items that will be changed and how the increases were arrived at.

Director Schmidt inquired how much would be raised from the fare increase package. Mr. Harvey answered a fare revenue of approximately 7.6 percent or $1 million is expected.

Director Schmidt also asked if the BART opening would increase the District’s operating cost and if there would be a need to make another adjustment in the near future. General Manager Michael Scanlon responded there is no plan to raise fares riders to pay for BART. He advised a preliminary budget will be presented next month that would include an amount for the first half of the year under BART. Mr. Harvey added staff would be realigning the service. Duplicate service will be eliminated that would be competing with the line and save some costs.

Chair Hill raised the issue of transfers - that SamTrans does not offer transfers while other agencies do. Mr. Harvey explained the difficulty of providing this program and cited similar types of flexibility in the fares that could be provided in conjunction with some other technologies and programs that are being pioneered in the Bay Area at this time. As an example, Translink that is currently on the test mode. Mr. Scanlon added a 1-year pass at the price of 11, as suggested by the Citizens Advisory Committee may be instituted.

The Board Secretary, Aurora Jose, reviewed the steps taken by staff to announce the hearing and solicit public input.

Nancy Knific, Program Director of the San Carlos Adult Day Center, supported the fare increase and hoped that the quality of service will remain the same. She stated they will continue to work with Redi-Wheels to increase the efficiency, but cannot see the quality of service degraded.

Donald Kennedy, Menlo Park, noted the money that will be generated by the fare increase will not cover the total deficit. He remarked the fare increase will decrease the riders and not really help anything.

Attorney Cassman advised the public hearing has just been concluded. All the applicable legal requirements that pertain to this type of action have been satisfied. The hearing may be closed. The Board may consider the Resolution and the Amended Codified Tariff that incorporates all the proposals that have been described.

Accordingly, the public hearing was closed. The Board (Hill/Janney) unanimously approved the Codified Tariff as amended (Resolution No. 2002-10).

                                                                                                                             [RESOLUTION]

REPORT OF THE GENERAL MANAGER/CEO

Mr. Scanlon underscored nobody wants a fare increase, however, the budget is off about a million dollars a month. A preliminary budget report that holds the service with some recommendations will be presented to the Board next month. He made the following reports:

• Recognized Allan Fung, Transit Division Manager; Dave Olmeda, Manager of Bus Maintenance; and Ross Weir, Supervising Engineer, for having successfully passed the American Public Transit Exam. The certificates were presented by Chair Hill and Director Guingona.
• Thanked Tom Malone of the SamTrans CAC, Rich McGann and John Murphy, MV Transportation, for their good work.
• Engine repowering is now 69 percent complete out of 137. Because of the CARB meeting, CARB is planning to possibly eliminate the diesel path and requiring everyone to do the alternative fuel path. He commended Mr. Chuck Harvey for his work on this matter.

COMMUNITY RELATIONS COMMITTEE

The Board (Nevin/Guingona) unanimously approved the Community Relations Committee of March 14, 2002.

He stated the appointment of Citizens Advisory Committee members will be taken to the Board for action next month.

Director Nevin reported the Committee received presentations on the following:

• PCC and PCC Advocacy Report
• Citizens Advisory Committee Liaison Report
• BART Performance Report
• Multimodal Ridership Report

FINANCE COMMITTEE

The Board (Teglia/Schimdt) unanimously approved the following resolutions:

• Resolution No. 2002-13: Adopting an Amended and Restated Codified Tariff
• Resolution No. 2002-14: Declaration of Official Intent of the San Mateo County Transit District to Reimburse Certain Expenditures from Proceeds of Indebtedness
• Resolution No. 2002-15: Authorizaing Award of Contract to Bay Area/Diablo Petroleum Company, dba Golden Gate Petroleum of Martinez, California for Furnishing and Delivering Ultra Low Sulfur Diesel Fuel for a Total Estimated Cost of $8,130,200 Over a Five-Year Term
• Resolution No. 2002-16: Authorizing Award of Contract to Transit Resource Center for Providing Bus Production Inspection Services and a Quality Control Assurance Program for a Total Cost of $65,872

The Board (Teglia/Guingona) unanimously approved the following:

• Minutes of Finance Committee Meeting of March 14, 2002
• Request for Assistance with Emergency Shelter Program

Chair Hill commended staff on their cooperation in providing this service to the homeless people. Director Nevin added the mechanics and neighbors who live next door to the residents of this shelter should also be recognized.

LEGISLATIVE COMMITTEE

• The Board (Lloyd/Janney) unanimously approved the minutes of Legislative Committee meeting of March 14, 2002.
• Director Lloyd reported Ed Stewart gave a thorough report on the legislative bills SBX3 10, SJR 36, SCA 11, and AB 2788, to which the Board (Lloyd/Nevin) unanimously gave their support.

Director Lloyd stated he gave an update on the Federal Legislative Affairs and the Amtrak situation. Mr. Stewart gave an update on the meeting that would be held on the zero emission diesel.

GENERAL COUNSEL PROPOSAL

Attorney Cassman noted the Board will hear a report on the settlement negotiations involving Wai Lun Chan. The other item involving BART Parcel D-3151 real estate negotiations will be continued for next month.

THE BOARD ADJOURNED INTO CLOSED SESSION AT 3:35 AND RECONVENED TO OPEN SESSION AT 3:50 P.M.

Closed Session: Conference with Legal Counsel – Closed Session Pursuant to Government Code Section 54956.9(a), Wai Lun Chan, et al. vs. SamTrans, et al.

Attorney Cassman stated the Board heard a status report on this item and gave directions and authority to the attorney who is handling this case on behalf of the District. No formal action is ready for announcement.

Adjourned: 3:59 p.m.