SamTrans.com - Committees and Board of Directors Meeting Agenda

Home

Contact

Sitemap

SamTrans > General Information > Board of Directors and Citizens Advisory Committee Meetings > Board of Directors Meeting Minutes - May 14, 2003

Committees and Board of Directors Meeting Minutes - May 14, 2003

SAMTRANS ADMINISTRATIVE OFFICE
2nd FL. AUDITORIUM
1250 SAN CARLOS AVENUE, SAN CARLOS, CALIFORNIA

Board of Directors
Community Relations
Finance
Legislative

COMMUNITY RELATIONS COMMITTEE
COMMITTEE OF THE WHOLE
(Accessibility, Senior Services, and Community Issues)

Committee Members Present: Jerry Hill (Committee Chair), Shirley Harris, Albert Teglia

Other Board Members Present, Constituting Committee of the Whole: John Barbour, Jim Hartnett, Mary Janney, Arthur Lloyd, Michael Nevin

Board Member Absent: Michael Guingona

Staff Present: Michael Scanlon, Joan Cassman, George Cameron, Cheryl Cavitt, April Chan, Monica Colondres, Roger Contreras, Jim Gallagher, Chuck Harvey, Rita Haskin, Aurora Jose, Martha Martinez, Susan Stark, Ed Stewart, Bill Welch

Pledge of Allegiance
Vice Chair Janney led the Pledge of Allegiance to the flag.

Approval of Minutes of Community Relations Committee Meeting of April 9, 2003
The Committee (Teglia/Harris) recommended Board approval of the minutes.

Approval of Citizens Advisory Committee Revised Absence Policy
The Committee (Harris/Barbour) recommended approval of the revised policy.

PCC, Advocacy and ATAC Reports
Bill Welch, Manager, Accessible Transit Services, referred to the Paratransit Coordinating Council (PCC) and ADA Technical Advisory Committee (ATAC) minutes that contain a good deal of information about the progress of the eligibility recertification process.

He also reported on his presentation at the American Public Transportation Association (APTA) conference on Bus and Paratransit, concerning the Redi-Wheels taxi demonstration project. The presentation was entitled "Taxis That Save You Money in ADA Paratransit." He stated preliminary results for April indicate that the District has achieved net savings in operating costs by substituting taxis for Redi-Wheels vehicles. He noted that a second taxi provider has recently been contracted. This has helped Redi-Wheels cut back on evening and weekend trips that are not productive. The report was received with great interest at the conference.

Director Harris congratulated Mr. Welch for having accomplished this.

Dale Edwards, PCC Chair, reported

The Efficient Review Committee (ERC), a subcommittee of the PCC, continues to work closely with SamTrans staff in working on the details for the new eligibility process and hiring of a contractor.
He was a participant at the Samceda Measure A reauthorization kick-off on May 22. The PCC desires to get actively involved in this worthwhile endeavor and will promote the needs of the paratransit service in the county.

Citizens Advisory Committee (CAC) Liaison Report
Dick Poe, Vice Chair of the CAC, reported that the recent CAC meeting was primarily focused on the bus service at the vicinity of the airport. He pointed out that per the report of a CAC member, the discontinuance of the BX and Route 193 on June 21 would cause a large increase in the cost of travel for people who work at the airport going north. To a rider who makes 22 round trips a month, the fare would increase from $40 a month (bus pass) to $61, to get to the Millbrae Station. To the Colma Station, the cost would be $109; and to Daly City, $123, plus connections from the BART stations to their further destinations. He stated that most of these people work in shops, are mechanics and food service workers who are making minimum wages. At the public hearings that were previously held, the CAC thought that the route changes were fine. However, they are having second thoughts and concluded that this matter should be brought to the attention of the Board.

Also, at the CAC meeting, a public member from Redwood Shores, representing a number of bus riders, hearing rumors going around, expressed concerns on the possible changes in the express routes (PX and NX) in the area. These riders signed a petition urging the Board to continue the service.

Director Barbour sympathized with the plight of the airport workers and suggested that staff conduct an investigation on the higher cost of travel alluded to by Mr. Poe.

General Manager/CEO Michael Scanlon stated Chuck Harvey, Chief Operating Officer, will discuss this and some other issues in his report.

Ken Feldstein, CAC member, on the Route 193 situation, added that most riders do not speak English and do not know what is going on. They are low wage earners. They take the bus across Hwy. 101 to San Bruno, then head north. The elimination of Route 193 would increase their fare to San Bruno alone to $109 on a 22-day work month. He pointed out that these people will have to ride SamTrans to get to the BART station, adding another $40. Airline employees get a discount on the BART ride. Route 193 riders are non-airline employees. The route changes will devastate their budgets. He suggested staff look at some ways of providing service from the airport to San Bruno.

Presentation on BART Performance
Chuck Harvey, Chief Operating Officer, reported:

Average weekday ridership is showing some slight growth.
In San Mateo County, ridership is trending towards the right direction.
Token usage remains extremely strong and continues to go up.
Statistics show that out of 42,000 schedules per month, there were almost no missed schedules, indicating system reliability, for which he credited Chester Patton, Bus Transportation Manager, and the members of ATU 1574, especially the dispatchers.
On-Time Performance is at 85 percent. The goal for FY 2004 is 90 percent.
On the communications system, all installations are complete. Audio recording of bus stops and destinations is going on. Dispatchers are undergoing training to be able to use the entire system.
Out of 137 buses, 128 have been repowered to reduce the nitrogen oxide (NOx) emissions and particulate matter (PM) and increase fuel economy. Additional retrofit, otherwise called the Clear-Air Device, will be done to further reduce NOx and PM by another 50 percent. This will help the Metropolitan Transportation Commission (MTC) and the Bay Area Air Quality Management District (BAAQMD) meet their Ozone Attainment Plan.
New express buses are being built at Gillig. They will be delivered in the fall. The District will have its first low-floor buses which will be in service by December of this year.
The FY 2004 budget contains the same service levels adopted in FY 2003.
SamTrans is preparing for the big day, June 22 - the opening of BART.

Director Hill inquired if the retrofits increase bus performance. Mr. Harvey responded he anticipates a loss of one to three percent fuel economy, which is negligible. There will be no performance loss in terms of power. However, there will be significant reduction in NOx and PM.

Multimodal Ridership Report
Mr. Harvey noted that overall ridership numbers are better.

SamTrans ridership is down only 2.6 percent.
BART is up .3 percent.
Caltrain ridership in San Mateo County is down 2.7 percent.
The overall system for all modes is down 1.7 percent.
Paratransit continues to be tough but without denials.

Adjourned: 2:22 p.m.

FINANCE COMMITTEE
COMMITTEE OF THE WHOLE

Committee Members Present: Shirley Harris (Committee Chair), John Barbour, Jim Hartnett (Departed at
2:30 p.m.)

Other Board Members Present, Constituting Committee of the Whole: Jerry Hill, Mary Janney, Arthur Lloyd, Michael Nevin, Al Teglia

Board Member Absent: Michael Guingona

All Committee members were present. Director Harris called the meeting to order at 2:22 p.m.

Director Hartnett apologized in advance and informed that he had to leave in a few minutes.

Approval of Finance Committee Minutes of April 9, 2003
The Committee (Lloyd/Hartnett) recommended Board approval of the minutes.

Approval of a Call for Public Hearing on July 9, 2003 at 3 p.m. on the Proposed Fare and Tariff Changes
Chuck Harvey, Chief Operating Officer, emphasized that the public hearing is not to increase SamTrans fares. SamTrans sells San Francisco Municipal Railway (Muni) fare instruments so that people can make ride transfers seamlessly. That agency has increased its fares. The public hearing would allow SamTrans to fix that item in the tariff. There is no fare increases on the SamTrans system. Also, the authority allows staff not to have to come back to the Board on similar items where other agencies are making fare changes.

The Committee (Lloyd/Hill) recommended Board approval of the call for public hearing.

Acceptance of Statement of Revenues and Expenses, March 2003
Roger Contreras, Chief Financial Officer, noted that passenger fares were reduced approximately $200,000 to reflect actual ridership. Due to the Metropolitan Transportation Commission (MTC) adjustments brought about by the slowdown in economy, the revised budget shows a reduction of $4.6 million for a revised budget of $24.2 million. Pertaining to sales taxes, projections were reduced by another $1 million for a total of $3.2 million, which is reflected in the new revised budget for a total of $56 million. Under the "Other" column, budget was increased by $1.3 million mainly to reflect excess earnings in the Public Employee's Retirement System (PERS) retirement super fund of $700,000. The "Other" item is related to the BART Colma revenue of another $400,000. Interests increased by $200,000. Overall, Mr. Contreras expects that revenues will be decreased by $6.5 million from $127 million to $120 million.

On the expenditure side, the budget was decreased because of $.5 million savings for fuel and lubricant and $.7 million insurance costs. However, because of increased ridership and maintaining the zero denial policy under the Americans with Disability Act (ADA) program, the District has an overrun of $900,000. Despite the overrun, on a total budget basis, the District has saved $200,000.

In summary, revenues were decreased by $6.5 million mainly because of the slow down in economy. Operating cost had savings of $200,000. Capital Program is saving $100,000 as a result of closing one project. Also, $1.2 million were saved due to the debt service. Overall, the changes in revenues and the savings that were received had increased the previous deficit of $5 million for a new deficit of $11.6 million.

To address this deficit, Mr. Contreras presented statements showing sources of funds, operating revenues, revenues related to capital assistance and sales taxes. He discussed changing the presentation of the monthly financial statement and incorporating a debt service schedule where resources flowing from the reimbursement bonds would be used to address the deficit. He stated the annual debt service as projected in 2003 is divided into Reimbursed Bonds and Capital Bonds. Capital Bonds are used when there are major capital improvements. He illustrated how reimbursement bonds were borrowed at lower interest rates and then those proceeds were invested at higher rates to generate income. These investments are done pursuant to a policy ratified by the Board on an annual basis. Mr. Contreras showed a graph of how from 1998 through 2002, the District successfully made extra money by using this method. He anticipates that for 2003, the District would make around $700,000. For 2004, his conservative estimate is that it would be break even.

Mr. Contreras presented a new schedule in the FY 2003, showing how the deficit would be addressed.

Director Harris asked what the District would have normally done if the transfers were not made. Mr. Contreras answered the District would have to dip into the reserves.

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

Acceptance of Quarterly Investment Report and Fixed Income Market Review and Outlook
Bill Osher of Harris, Bretall, Sullivan and Smith, discussed the detrimental effect of war to the financial market. Economic activity and the equity market fell apart due to uncertainty on the part of investors and consumers. These uncertainties dissipated when the war ended. People however are expected to take a long-term view of what is going on. They will be putting off spending money. As soon as psychological change is achieved, business will be better, earnings will be better, and equity prices will be higher. The anticipated tax cut will improve disposable income and consumption, leading to economic growth on the second half of the year. Mr. Osher also discussed the activity of the bond market and the chance of having an uncomfortably low level of inflation. All things considered, the District's portfolio is positioned in such a way that it does not get hurt from any negative event. It is safe in unexpected rapid rise in interest rates. It is safe from the perspective of capital preservation. It is keeping with its benchmarks and not experiencing any kind of credit problems whatsoever.

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

Authorization to File Transportation Development Act (TDA) and State Transit Assistance (STA) Claims for Bus and Rail Purposes
Susan Stark, Director of Finance & Budget, reported the total TDA claims are $27.6 million and the STA claims are $2.2 million for FY 2004 or a total of $29.8 million. The TDA funds are derived from the State-imposed quarter cents sales tax and based on the estimate provided by the County Controller's office. The STA funds are derived by the State-wide STA funds forecast contained in the governor's proposed budget.

The Committee (Nevin/Lloyd) recommended Board approval of the filing of claims.

Execution of Cooperative Agreement with C/CAG for FY 2004 Transportation Fund for Clean Air (TFCA) Funds for the SamTrans Shuttle Bus Program
Mr. Harvey informed that this grant will fund the SamTrans Shuttle Bus Program for FY 2004. The 11 shuttle routes currently funded by the program are listed in the report. He reminded that the District has an agreement with individual employers for them to contribute 25 percent of the operating cost for a particular shuttle.

The Committee (Nevin/Teglia) recommended Board approval of the recommendation.

Application to Metropolitan Transportation Commission (MTC) for Federal Congestion Mitigation and Air Quality Improvement Program (CMAQ) and Regional Funding to Support SamTrans Bus Fleet Particulate Matter (PM) and Nitrogen Oxide (NOx) Reduction Program
April Chan, Manager, Capital Programs & Grants, reported that this is a request for authorization to file application with the MTC to receive a total of $1.9 million funding to support SamTrans' PM and NOx Reduction Program. The MTC, in working with the California Air Resources Board (CARB) had agreed to fund a portion of the device that CARB had approved. This is the portion that will reduce the NOx emission and they have agreed to fund a little over $9,000 per device. A device is about $17,500. The District is putting this application to retrofit up to 209 buses. The total amount staff is requesting in Federal and regional funding is $1.9 million.

The Committee (Lloyd/Teglia) recommended Board approval of the proposed action.

Establishment of Settlement Authority Policy for Employment Claims
Monica Colondres, Director of Human Resources, noted that this item was taken to this Board last month with both Worker's Compensation and employment-type settlement authority. Based on the discussions with the Board last month and subsequent discussions with Director Barbour, staff has come back with only the employment-related claim settlement authority policy.

The Committee (Hill/Barbour) recommended Board approval of the proposed action.

Contracts:

Award of Contract to Vehicle Technical Consultants, Inc. for Providing Bus Production Inspection Services and a Quality Control Assurance Program for a Total Cost of $63,075

Award of Contract to Boise Cascade Office Products for the Purchase and Delivery of General Office Supplies and Related Items Through State of California Contracts for a Five-Year Term at a Total Estimated Cost of $540,000

Cheryl Cavitt, Director of Contracts and Procurement, presented the two contract items cited above. The Committee having no questions (Hill/Teglia) recommended Board approval of the award of contracts.

Distribution of Proposed FY 2004 Operating Budget
Ms. Susan Stark reviewed the challenges that staff encountered in the preparation of the 2004 Operating Budget such as the decline in sales tax receipts from $59.2 million to the current projection of $56 million, a scheduled salary increase pursuant to the labor contract entered into in 2003, increase in fringe benefits costs for union employees as a result of a 12 percent increase in Worker's Compensation, an approximately two percent increase in Public Employees Retirement System (PERS) cost and one percent increase in other insurance-related items. Insurance and fuel costs will also increase.

Ms. Stark also discussed the methods adopted by staff in order to meet the challenges mentioned, as follows:

Continued moratorium on selected vacant positions.
Year 2004 will be the first full year for the new fare rates implemented in August 2002.
SamTrans will receive the benefit of a one-time funding source of $6.5 million in preventive maintenance fund.
SamTrans will continue to hold the Caltrain partners' contributions to the 2002 level.
Staff will propose a temporary suspension of CPI set-aside for the Paratransit Trust Fund.

Ms. Stark reminded everyone that the budget as presented, does not include the funds for the BART SFO Extension costs for lack of information to allow for reasonable estimate of costs.

Ms. Stark presented a chart of sources of expected operating revenues for FY 2004 showing estimated amounts. The sources are passenger fares, TDA and STA funds, investment income, Measure A funds, advertising, ADA and multimodal programs, and others. On the expenditure side, she likewise presented a summary of the District operating expenses illustrating increase or decrease. Further, she reported on the sales tax receipts and their uses.

Ms. Stark advised that this report is for information only and no action is requested at this time. This coming month, staff will be contacting the Board members individually to respond to questions or set up meetings to further review the budget. At the regular meeting in June, the proposed budget will be submitted for adoption.

Director Barbour questioned the 12 percent increase in Worker's Compensation benefits. He considers it as a major increase.

Ms. Colondres responded several things will change next year in Worker's Compensation benefits. Staff made some projections based on experience. There are significant increases in the amount that the District will be paying for temporary types of disabilities. Also, the layer of reinsurance is getting significantly higher. The cost of reinsurance for year 2004 is higher than next year.

Director Barbour commented that Worker's Compensation has now become the subject of a huge problem not only for the business community but the government as well. He requested staff to study and recommend possible reforms to the legislators and the governor. He believes that SamTrans should take an active part in trying to reform the Worker's Compensation problems. He thinks it is distasteful to have the Worker's Compensation go from $75,000 to $125,000. He feels that this is a serious problem in the State of California. He prefers that this amount go to wage increases or health insurance.

Mr. Scanlon agreed with the observation of Director Barbour and stated that in the transit industry, the District's record is unsurpassed. The District has excellent experience and is looked upon as the model. District employees do not fake injuries. He noted that out of the $6.6 million in wage benefits, $1.7 is in the Worker's Compensation and this was brought about by the changes in legislation. He stated that the District would be very pleased to participate in any program to solve the problem.

Ms. Colondres informed that Paul Chrisman, the District's Worker's Compensation Claims Administrator, has already studied some of the changes that are being proposed and has some plans to push for reforms.

Mr. Scanlon thanked staff who painstakingly put the budget together. He stated that the District would like to retain the service levels without raising fares. He is against losing any dedicated and skilled employees. He, however, feels that the District must honor its labor contract. Represented employees did not have a wage increase last year, although they received some improvements in the PERS area. Belt tightening will continue. There will be no wage salary increases for administrative employees. In lieu thereof, he is recommending that administrative employees be granted additional 80 hours of personal time off as a way to save money.

Distribution of Proposed FY Capital Budget
April Chan, Manager, Capital Programs & Grants, advised that this item is presented to the Board for information only, no policy action is requested.

She reported that the FY 2004 Capital Budget was developed within the following parameters:

Limited funding due to decline in sales tax.
Maintain transit operations and service network.
Secure environment for both employees and riding public.
Improve resources both personnel and capital assets.
Be consistent with the District's plans and programs.

She outlined the following prioritization of projects:

Legal and regulatory mandates.
On-going capital support for existing service network and maintenance of transit operations.
Safety and Security.
Improve workflow efficiency.
Insure that projects will help leverage external funding.

The following were the Capital Budget highlights:

Retrofitting of 209 buses for the upcoming fiscal year.
Replacement of 11 minivans in the Redi-Wheels fleet.
Replacement of major bus components and maintenance equipment.
Maintenance of bus stop improvements and ensure safety and security improvements of the maintenance bases.
Continuing efforts in transit oriented development and corridor planning.

Ms. Chan translated all of the categories above in numbers for a total of $9.51 million. The Federal funding makes about almost 50 percent. State and regional grants are about 10 percent and District sales tax is about 40 percent of the budget. She presented a chart showing the decline of sales tax contributions from 1995 through 2004.

Ms. Chan noted that this item will be taken to the Board for action in the June meeting.

Adjourned: 3:20 p.m.

LEGISLATIVE COMMITTEE
COMMITTEE OF THE WHOLE

Committee Members Present: Arthur Lloyd (Committee Chair), John Barbour, Michael Nevin

Other Board Members Present, Constituting Committee of the Whole: Shirley Harris, Jerry Hill, Mary Janney, Al Teglia

Board Members Absent: Michael Guingona, Jim Hartnett

All Committee members were present. Director Lloyd called the meeting to order at 3:20 p.m.

Approval of Legislative Committee Minutes of April 9, 2003
The Committee (Teglia/Janney) recommended Board approval of the minutes.

Support for SB 916 (Perata): Bridge Toll Increase for Transit
Ed Stewart, Legislative Analyst, reported that this bill was introduced by Senator Don Perata earlier this year. It recently was amended to include the projects that will be funded by the proposed $1 increase in bridge tolls. The Dumbarton Rail project was included for $135 million in capital funds, plus an operating subsidy of $5.5 million annually. Also included is the Oyster Point Ferry Service from South San Francisco to San Francisco in the amount of $12 million; and funding for the Downtown Extension of Caltrain to the Transbay Terminal. The proposal was passed by the Senate Transportation Committee last week and will be taken up by the Senate Appropriations Committee next Monday. All indications are that the bill should move out of the Senate in a rapid fashion.

Mr. Stewart noted that the Board had previously supported this bill in concept, and requested that the Committee recommend full Board support at this time.

Director Nevin expressed concern about SB 916 as to some $3 million to $5 million being spent on changing the alignment of the High-Speed Rail to Altamont. This was not accepted in the past. He further stated that if the alignment is changed, the High Speed Rail will not come down the Peninsula.

General Manager/CEO Scanlon commented that is a concern but did not consider it grave enough to not endorse the bill.

Mr. Scanlon advised that the Board had previously approved this bill in concept. Staff is now looking for full support.

Director Lloyd believed that regardless, High Speed Rail would come down the Peninsula. He said San Jose is afraid of being left on a spur and not having direct service. Director Lloyd suggested staff write a letter to the legislators supporting the bill and indicating this concern.

Director Nevin pointed out that if Santa Clara becomes a spur, the Peninsula corridor could also become a spur.

Mr. Scanlon commented if the Peninsula becomes a spur, the whole economics of High Speed Rail will fall apart because a link to San Francisco International Airport is needed to connect with LAX and to improve the attraction of ground transportation.

The Committee (Hill/Harris) unanimously recommended Board support of the bill but directed staff to convey to the author their concern over re-opening the study of High-Speed Rail through the Altamont Pass.

Support for SCA 7 (Murray): Loans of Transportation Revenues
Mr. Stewart reported that this bill is identical to a legislation introduced last year that the Board supported. This bill would require that loans from the State's transportation funding accounts to any other State fund be repaid, with interest. This is relevant considering the budget situation. The measure is in the Senate Appropriations Committee. He requested that the committee recommend support for the new version of the bill.

Director Barbour inquired why these funds are being loaned to something else. Mr. Stewart responded the way the State constitution is worded currently, this money could be transferred to other State funds and there had been some creative proposals to avoid repayment requirements. This legislation is aimed at eliminating those loopholes.

The Committee (Teglia/Barbour) recommended Board support of the bill.

Verbal Update of State Legislative Program
Josh Shaw of Shaw/Yoder reported the governor's May revision of the budget is in the Department of Finance. The governor anticipates a General Fund deficit of $38 billion, which must be narrowed down through cuts or savings or revenue increases. Some cuts have already been approved by the Legislature. Revenues and tax receipts have stabilized, but some of the projected expenditures have increased. The governor proposes issuing about $10.7 billion in financing bonds to cover the cash flow needed. He would propose increasing the State sales tax to provide revenues to pay off those bonds. He would maintain the cigarette tax increase proposed in his January 10 budget. The governor proposes that Proposition 42 moneys stay in the General Fund, with a repayment schedule to be legislated. Whether interest is paid or not is not addressed in his refinancing proposal. However, the governor proposes to have the General Fund give the transportation programs about $207 million to keep certain capital projects moving forward. Construction contracts that are already under way will continue with this $207 million. In the county, that would maintain the Baby Bullet work that has already been done or started. Some capital projects, however, may fall by the wayside. The Assembly has already anticipated this and they want to almost double what the governor has proposed. The problem is that the Senate does not want to do that. The Senate budget proposal is in line with the governor's, so staff will have to convince the senators to be more generous to transportation. In the past staff worked with Senator Sher, one of the county's senators because he has chaired the Subcommittee on Transportation Funding and has been friendly toward transportation needs. He is no longer in charge of that subcommittee so staff must rely on others to convince the Senate to preserve as much transportation money as possible.

The other aspect of the May revision is the proposal to keep in the General Fund about $90 million that otherwise would have gone directly to the Public Transportation Account and the State Transit Assistance program. STA provides only about $2 million to SamTrans' budget, but it is still significant. This is a major funding reduction for transit operations, so staff obviously will be fighting and asking the legislature to say no to that proposal.

In response to Director Barbour's question about worker's compensation, Mr. Shaw noted that there are several legislative efforts to address worker's comp reform. Several legislators are talking about some sort of linkage between passage of the state budget and some kind of Worker's Compensation reform. In a vacuum, it would be very difficult to institute reforms because it is a highly partisan issue. But in a year where the State has a $40 billion deficit that needs to be closed, it is possible to link some of these decisions together. Some Democratic votes will be needed to implement these reforms. The Board's personal communications with some of its colleagues in the legislature will be important in this regard.

The governor in his May revision signals his clear intention that the vehicle license fee be increased to its 1998 levels. He believes the Department of Finance will automatically raise the fee in accordance with the 1998 legislation. Historically, these funds have gone directly to cities and counties as part of their General Fund budgets. The governor today proposed holding $1 billion back for the State. This would be a loss of $1 billion of city/county revenue. The legislature has not signaled its agreement with this proposal.

Verbal Update on Federal Legislative Program
Mr. Stewart reported that this morning, Secretary Mineta introduced the Bush administration's proposal for reauthorization of TEA 21. The bill is called SAFETEA, the Safe Accountable Flexible and Efficient Transportation Equity Act of 2003. The bottom line is that the President is proposing a $247 billion for transportation over six years compared to $218 billion in TEA 21, for an increase of about 12 percent. Importantly, the bill maintains guaranteed funding levels for transportation. This was a key element of TEA 21. The transit program specifically will be funded at $46 billion as compared to $41 billion in TEA 21. However, the proposal is essentially a no-growth proposal for transit funding next year. There will be no increase over the current year's $7 billion funding level for transit in FY 2004. The first hearing on the SAFETEA proposal will be tomorrow and this will be the start of a long process this year. Congress last month passed the Federal budget resolution that authorizes $280 billion for transportation over the next six years. Obviously, those interested in transportation program will be pushing for the higher figure to be enacted. The chairman of the House Transportation Committee is actually supporting a $375 billion reauthorization package. That will not be possible without some new revenue sources, and what is currently being proposed is to index the Federal gas tax to inflation, which could generate up to $1 billion per year. The committee is also proposing to eliminate the ethanol subsidy by basically increasing the gas tax on ethanol fuels, and that could generate up to $2 billion more each year for transportation.

Adjourned: 3:45 p.m.

SAN MATEO COUNTY TRANSIT DISTRICT
BOARD OF DIRECTORS

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

Board Members Absent: Michael Guingona (Chair), Jim Hartnett

In the absence of Chair Guingona, Vice Chair Janney called the meeting to order at 4:09 p.m.

CONSENT CALENDAR
Motions
The Board (Lloyd/Janney) unanimously approved the following items under the Consent Calendar:

Adoption of Minutes of Board of Directors Meeting of April 9, 2003
Acceptance of Statement of Revenues & Expenses, March 2003
Acceptance of Quarterly Investment Report and Fixed Income Market Review and Outlook

PUBLIC COMMENT:
None at this time.

REPORT OF THE CHAIR
The Board proclaimed May as Older Americans Month. The Proclamation was presented to Bill Lathrop, a newly appointed member of the San Mateo County Commission on Aging.

Director Nevin recognized the public and social service efforts of Vice Chair Janney as council member and mayor of the City of Burlingame. He stated she runs a residential home care for the elderly. He noted a personal experience when he solicited Director Janney's guidance concerning his siblings. He admired her overall demeanor, professionalism, real understanding and care for those needing her assistance. Everything worked out so well.

REPORT OF THE GENERAL MANAGER
Michael Scanlon announced the Twenty Years of Safe Driving Award as Vice Chair Janney presented the plaque to Earnest Hamilton.

Mr. Scanlon gave the following report:

MV Transportation did not have any chargeable accidents for the month of April.
South Base also did not have any chargeable accidents, for which he congratulated Chester Patton, the superintendents and supervisors.
Baseball service to PacBell is back. Reliability is impressive.
Director Nevin is working with Friends of BART, a group that is raising private money to celebrate the BART opening. SamTrans employees who volunteered as ambassadors will meet and greet customers on that day.
He thanked Directors Hill and Lloyd for attending the Millbrae unveiling and station dedication.
Tomorrow is a "Bike-to-Work Day". Mr. Scanlon invited everyone to join the occasion.
He mentioned Director Nevin's appearance as guest to the "60-Minute" TV program.
He noted that BART provides a premium service. This Board, last year, took an action to subsidize the BART fare by a dollar, mitigating the expense of riders in taking BART.

COMMUNITY RELATIONS COMMITTEE
Resolution
Resolution No. 2003-15: The Board (Hill/Lloyd) unanimously approved the Citizens Advisory Committee Revised Absence Policy.

Motion
The Board (Hill/Harris) unanimously approved the minutes of the Community Relations Committee meeting of April 9, 2003.

Subjects Discussed
Director Hill reported that the Committee discussed the following:

PCC, Advocacy and ATAC Reports
Citizens Advisory Committee Liaison Report
Presentation on SamTrans Performance
Multimodal Ridership Report, March 2003

FINANCE COMMITTEE
Resolutions
The Board (Harris/Hill) unanimously approved the following:

Resolution No. 2003-16: Authorization to File Transportation Development Act and State Transit Assistance Claims for Bus and Rail Purposes
Resolution No. 2003-17: Execution of Cooperative Agreement with C/CAG for FY 2004 Transportation Fund for Clean Air (TFCA) Funds for the SamTrans Shuttle Bus Program
Resolution No. 2003-18: Application to Metropolitan Transportation Commission (MTC) for Federal CMAQ and Regional Funding to Support SamTrans Bus Fleet Particulate Matter (PM) and Nitrogen Oxide (NOx) Reduction Program
Resolution No. 2003-19: Establishment of Settlement Authority Policy for Employment Claims
Resolution No. 2003-20: Award of Contract to Vehicle Technical Consultants, Inc. for Providing Bus Production Inspection Services and a Quality Control Assurance Program for a Total Cost of $63,075
Resolution No. 2003-21: Award of Contract to Boise Cascade Office Products for the Purchase and Delivery of General Office Supplies and Related Items Through State of California Contracts for a Five-Year Term at a Total Estimated Cost of $540,000

Motion
The Board (Harris/Lloyd) unanimously approved a call for pubic hearing to be held on July 9, 2003 at 3 p.m. on the Proposed Fare and Tariff Changes.

Subjects Discussed
Director Harris reported that the Committee had presentations on the proposed FY 2004 operating and capital budgets.

LEGISLATIVE COMMITTEE
Motions

The Board (Lloyd/Teglia) unanimously approved the minutes of Legislative Committee meeting of April 9, 2003.
The Board (Lloyd/Harris) unanimously approved support for SB 916 (Bridge Toll Increase for Transit) with an item of concern as to the High-Speed Rail routing to Altamont; and support for SCA 7 (Loans of Transportation Revenues).

Subjects Discussed
Director Lloyd reported that Mr. Shaw gave an update on State legislative program. He noted that Governor Gray Davis has removed his recommendation that the High Speed Rail Authority be moved to Caltrans. Mr. Stewart gave a Federal legislative update.

PLANNING AND DEVELOPMENT COMMITTEE
Motion
The Board (Janney/Lloyd) unanimously approved the minutes of Planning and Development Committee meeting of March 13, 2003.

Subjects Discussed
Vice Chair Janney reported that the Board heard the presentations of the SamTrans Bus Service to the New BART SFO Extension Stations and the BART Extension Marketing Campaign.

GENERAL COUNSEL PROPOSAL

Closed Session: Conference with Legal Counsel - Existing Litigation - Closed Session pursuant to Government Code Section 54956.9(a): Tanforan Shopping Center v. SamTrans et. al.
Closed Session: Conference with Legal Counsel - Existing Litigation - Closed Session pursuant to Government Code Section 54956.9(a): Prentiss v. SamTrans
Closed session: Conference with Legal Counsel - Existing Litigation - Closed Session pursuant to Government Code Section 54956.9(a): Williams v. SamTrans

Attorney Joan Cassman reported that the Board will hear reports on the three closed session items noted above. She did not anticipate any Board action after the session.

WRITTEN COMMUNICATIONS TO THE BOARD OF DIRECTORS
Martha Martinez, Manager, Executive/Governing Boards Support, noted that the copies of the Analysis Report on Fares and Ridership Patterns and the Redwood Shores petition referred to by the Citizens Advisory Committee members will be sent to the Board members.

DATE AND TIME OF NEXT MEETING: Wednesday, June 11, 2003 at 2 p.m., SamTrans Administrative Office, 1250 San Carlos Avenue, San Carlos, California

Adjourned: 4:50 p.m.