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SamTrans > General Information > Board of Directors and Citizens Advisory Committee Meetings > Board of Directors Meeting Minutes - May 11, 2005

Committees and Board of Directors Meeting Minutes - May 11, 2005

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: Adrienne Tissier (Committee Chair), John Barbour, Art Lloyd

Other Board Members Present, Constituting Committee of the Whole: Jim Hartnett, Marc Hershman, Jerry Hill, Michael Nevin

Other Board Members Absent: Michael Guingona, Shirley Harris

Staff Present: Penny Bertrand, George Cameron, Joan Cassman, April Chan, Monica Colondres, Gigi Harrington, Chuck Harvey, Aurora Jose, Raymond Lee, David Miller, Ian McAvoy, Michael J. Scanlon, Mark Simon, Ed Stewart, Bill Welch

Pledge of Allegiance
Chair Hill called the meeting to order at 2:03 p.m. and led the Pledge of Allegiance.

Approval of Minutes of Community Relations Committee Meeting of April 13, 2005
The committee (Hershman/Hartnett) unanimously approved the minutes.

PCC, AL-Com, and ATAC Reports
Bill Welch, Manager of Accessible Transit Services, said staff is working with the Paratransit Coordinating Council (PCC) to look at efficiency issues for Redi-Wheels to ensure travel time on Redi-Wheels is comparable with fixed route.

Dale Edwards, PCC Chair, said Alec Karp, a long-time member of the PCC recently resigned. Mr. Edwards recognized Mr. Karp for his accomplishments and contributions for the improvement of the paratransit service. He also said the Strategic Planning for Accessible Transportation Services (SPAT) and the PCC educational committee are working to improve the access by people with mobility limitations to recreational parks. Mr. Edwards said the PCC is impressed with the high quality of performance of Kathlyn Clark and her assistants in conducting the eligibility screening process.

Citizens Advisory Committee (CAC) Liaison Report
Ken Feldstein, CAC Chair, said at their last meeting, the committee had a presentation on the upkeep of bus shelters. They also discussed the projected elimination of some train stations in the peninsula. A report was heard on the success of the Brisbane/Bayshore/Daly City shuttle service operation. The proposed fare increase was discussed. The CAC will wait for developments and take a position. Given the financial situation the District is in, the CAC does not object to any actions the District may take to make it better. However, the committee voted to urge the board to consider transfer media such as paper transfers and day passes as they look at fare increases. An ad hoc subcommittee will be created to look at simplifying the fare structure and make it more equitable.

SamTrans Performance Report
Chuck Harvey, Chief Operating Officer, said since the last report in January 2005:
  1. SamTrans average weekday ridership rolling average has been holding steady.
  2. Token usage remains a huge success.
  3. Missed schedules are at 10 per month which translates to 99.9813 percent of operated scheduled services.
  4. Fleet reliability has been extraordinary.
  5. Consumer Reports and complaints have been steady.
FRED
Mr. Harvey said FRED is an internal committee formed to reinvent the bus system, look at areas of improvement, make the service more user-friendly and accessible, to increase ridership. It is co-chaired by Mark Simon, Special Assistant to CEO, and Chester Patton, Director for Bus Transportation. The members are asked to ride the buses and write a comprehensive report on their experience. FRED is composed of subcommittees that look at various aspects of the service and the system. The subcommittees meet every week while the full committee meets every other Friday. FRED also coordinates with the Citizens Advisory Committee. Ideas and recommendations will be considered in the strategic planning process.

Multimodal Ridership Report
Mr. Harvey said for the month of March 2005:
  1. Ridership for all modes was more than 105,000.
  2. Bus ridership was down 7.3 percent due to constant rain in March. Also school spring break occurred in March instead of April.
  3. Paratransit ridership remains steady.
  4. Caltrain ridership number reflects the success of the Baby Bullet train. Two bullet trains have recently been added. The morning schedule is very well ridden.
  5. BART ridership is up by 5.3 percent and is still going up. There was fairly significant increase in ridership in South San Francisco. Ridership at Millbrae is increasing as well. Ridership in the airport fluctuates.
Adjourned: 2:27 p.m.


FINANCE COMMITTEE
COMMITTEE OF THE WHOLE

Committee Members Present: Marc Hershman (Committee Chair), John Barbour

Committee Members Absent: Michael Guingona, Shirley Harris

Other Board Members Present, Constituting Committee of the Whole: Jim Hartnett, Jerry Hill, Arthur Lloyd, Michael Nevin, Adrienne Tissier

Staff Present: Penny Bertrand, George Cameron, Joan Cassman, April Chan, Monica Colondres, Gigi Harrington, Chuck Harvey, Aurora Jose, Raymond Lee, Ian McAvoy, David Miller, Michael J. Scanlon, Mark Simon, Ed Stewart, Bill Welch

Director Hershman called the meeting to order at 2:27 p.m.

Approval of Finance Committee Minutes of April 13, 2005
The committee (Hartnett/Lloyd) unanimously approved the minutes.

Acceptance of Statement of Revenues & Expenses for March 2005 and Supplemental Information
Gigi Harrington, Chief Financial Officer, said total revenue as of March was on budget. Expenses were slightly under budget primarily in the motor bus area. Fuel prices continue to rise and staff expects fuel expenses to exceed the budget for fuel by $200,000 to $300,000. Ms. Harrington said the capital funding that was rolled into this statement was incorrectly represented. This will be corrected in the April statement.

The committee (Lloyd/Tissier) unanimously accepted the report.

Acceptance of Quarterly Investment Report and Fixed Income Market Review and Outlook
Bill Osher, Epic Wealth Management, said for the past 12 months, investment return was the lowest in more than 20 years for the short-term bond market. He, however, saw this forthcoming, so the District's portfolios were positioned accordingly. While benchmarks lost close to a percentage point, returns were positive. Capital was preserved. He said interest rates are expected to increase before the year is over. Funds of the portfolio will be invested very safely and earn a return of over four percent.

The committee (Tissier/Lloyd) unanimously accepted the report.

Authorization to Set a Public Hearing on June 1, 2005 to Solicit Public Input on the Proposed Fare Adjustments to Take Effect September 1, 2005
Chuck Harvey, Chief Operating Officer, said staff is calling for a public hearing on June 1, 2005 to consider the changes in the proposed SamTrans fare structure. The reason for scheduling this on a special day is for staff to be able to move forward and have the Codified Tariff take effect September 1. The report has a number of recommendations in terms fare increases.

The committee (Hartnett/Hill) unanimously recommended board approval of setting the public hearing on June 1 at 10 a.m.

Authorization to File Application with the Metropolitan Transportation Commission (MTC) to Program Federal Transit Administration (FTA) Sectin 5307 Funds for SamTrans Capital Budget
April Chan, Director of Capital Program Support, said approval of the proposed action will authorize the General Manager/CEO to submit applications to the MTC to program federal funding for a number of capital projects listed in the staff report. MTC recently issued a call for projects to program FY 2006, 2007, and 2008 federal FTA funding.

The committee (Hartnett/Lloyd) unanimously recommended board approval of the proposed action.

Authorization to Execute a Funding Agreement with MTC for FY 2006 Transportation Funds for Clean Air (TFCA) in the Amount of $150,000 to Underwrite Portion of the "Purchase and Install Enhanced Bus Catalysts" Project
Ms. Chan said approval of the proposed action will authorize the General Manager/CEO to receive $150,000 in TFCA funding that will fund a portion of the enhanced catalysts project.

The committee (Tissier/Lloyd) unanimously recommended board approval of the proposed action.

Approval of Proposed Disadvantaged Business Enterprise (DBE) Overall Annual Goal for FY 2006
Raymond Lee, DBE Officer, said each year, the District is required to analyze and propose a level of DBE participation in the District's federally-assisted contracts. For FY 2006, the DBE review committee is recommending a goal of 11 percent. The District does not expect to utilize Federal Highway Administration (FHWA) funds for the next fiscal year and is not proposing a DBE goal for this. The current year goal is seven percent for FTA funds and as of the end of February, the District was running at the rate of 4.5 percent. The goal of seven percent may be achieved depending on the DBE participation in the additional contracts for the remainder of the fiscal year ending September 30. As required by federal regulations, the District is required to publish the proposed goal to allow the public an opportunity to comment. The DBE review committee is recommending that the board approve for publication the proposed goal. Mr. Lee said in the event that there is no public comment that requires changes to the goal, the General Manager/CEO be authorized to adopt the goal.

The committee (Hartnett/Lloyd) unanimously recommended Board adoption of the proposed goal.

Authorization for the District to Pick Up Pre-Tax Payroll Deductions for Service Credit Purchases of Employees (Contribution Code 14)
Monica Colondres, Director of Human Resources, said the California Public Employees Retirement System (CalPERS) is requiring this action so that the District can allow employees who are purchasing service credits to pay for the purchase through payroll deduction with pre-tax dollars. There is no cost to the District for doing this.

The committee (Lloyd/Tissier) unanimously recommended Board approval of the proposed action.

Approval to Award Contract to Cities Group for Providing Workers' Compensation Program and Claims Administration Services at a Total Estimated Cost of $773,000 for a Five-Year Term
George Cameron, Chief Administrative Officer, said the Cities Group is the District's incumbent and is efficiently administering the Workers' Compensation Program in the state.

The committee (Lloyd/Tissier) unanimously recommended board approval of the award of contract.

Approval of Award of Contract to Technology Insurance Services, Inc. for Providing Insurance Broker Services for a Total Estimated Cost of $337,140 for a Five-Year Term
Mr. Cameron said Technology Insurance Services is the District incumbent and has served the District very well.

The committee (Lloyd/Tissier) unanimously recommended board approval of the award of contract.

Proposed Operating Budget FY 2006
Gigi Harrington, Chief Financial Officer, said under the FY 2006 budget, revenues are budgeted at $125.5 million. The total budget represents an increase of $10.4 million from $115.1 million for FY 2005 to $125.5 million for FY 2006. Operating Expenses are $119.8 million. She said the difference between revenues of $125.5 and expenses of $119.8 will be used to fund the SamTrans capital program. Ms. Harrington said the expenses relative to bus operations are budgeted at $3.3 million higher from $61.6 million in FY 2005 to $64.9 million in FY 2006. She also said expenses for contracted urban bus service were increased to $13.8 for FY 2006 from $12.9 for FY 2005. ADA Program expenses were increased to $12.2 for FY 2006 from $11.5 million for FY 2005. Multimodal Transit Program Expenses were increased to $28.9 million in 2006 from $24.8 million in FY 2005. Ms. Harrington discussed in detail the budget items under each category, showing their relative percentages.

Upon question of Director Hill, Ms. Harrington said interest is lower because the portfolio is lower.

General Manager/CEO Michael Scanlon said the District is facing sustained financial difficulties that are driven by the economy. Sales tax revenue of $58 million is expected. However, it is $12 million below what the District was getting many years ago. Mr. Scanlon described how SamTrans, once a small bus company, grew into a multimodal transit agency, running Caltrain, partnering with BART to provide rapid rail service and providing paratransit services.

He said the District is facing challenges that are beyond staff's control, such as rising cost of fuel, increasing medical insurance premiums and cost of the California Public Employees Retirement plan. SamTrans has existing annual debt service payments of $35 million which must be addressed. Reserves are rapidly depleting. He identified possible sources of revenues such as establishing a stable regional funding source for Caltrain and BART, collecting from San Francisco and Santa Clara advances made for Caltrain, leasing the Caltrain right of way, and refinancing bonded indebtedness.

He said the FRED committee is finding ways to reinvent the system to get better revenue, control costs and provide quality customer service. The District has to figure out a strategy and formulate long-term solutions to issues. Mr. Scanlon said labor negotiations are going on and he is optimistic that a responsible agreement could be reached.

To the question of Director Hartnett, General Counsel David Miller, said the agreement signed last year set out a repayment schedule. BART owes SamTrans for advances made for the real estate acquisition program. Under the agreement, BART is to pay $6 million in FY 2006. This is the minimum amount they are obligated to pay. Mr. Scanlon said he does not foresee any problem in getting this money.

Director Nevin said SamTrans made the right decision in getting involved in the train service. He said the Board of Directors must honor their commitments and as a team, must work together and study carefully how funding sources for Caltrain and BART will be created. They have to make sure that they do the right thing for the people of San Mateo County and protect the interests of SamTrans.

Chair Hill said SamTrans, after taking on the responsibilities arising from running the different modes of transportation was able to accomplish a lot with the half cent sales tax as its basic revenue source. He said with the sacrifice that community has to give the price is very good for the benefit they get.

Proposed 2006 Capital Budget
Ian McAvoy, Chief Development Officer, said the capital program was developed based on the District's goals and guiding principles. He said projects are prioritized according to established criteria. Mr. McAvoy identified the key projects pertaining to revenue vehicles and vehicle support and the construction and facility rehabilitation. He said the highlights of the capital budget are the network and computer upgrades and the implementation of PeopleSoft system updates. There will be continuing efforts in transit-oriented development and corridor planning, including securing local match for potential grant funds towards the Grand Boulevard project. Mr. McAvoy identified the budget allocations for each project category. He said the total proposed capital budget is $7,161,200. Federal grants are expected to be $1,345,027 (18.8 percent) and District sales tax is $5,816,172 (81.2 percent). Mr. McAvoy presented a chart showing the varying amounts of sales tax contribution for the last seven years.

Director Tissier asked if there is a possibility of getting more federal grants over time. Mr. McAvoy said there is always that opportunity and Proposition 42 is one good example of money that might be available. Staff will always be looking for that opportunity.

Adjourned: 3:16 p.m.


LEGISLATIVE COMMITTEE
COMMITTEE OF THE WHOLE

Committee Members Present: Art Lloyd (Committee Chair), Jim Hartnett, Michael Nevin

Other Board Members Present, Constituting Committee of the Whole: Marc Hershman, Jerry Hill, Adrienne Tissier

Other Board Members Absent: Michael Guingona, Shirley Harris

Staff Present: Penny Bertrand, George Cameron, Joan Cassman, April Chan, Monica Colondres, Gigi Harrington, Chuck Harvey, Aurora Jose, Raymond Lee, Ian McAvoy, David Miller, Michael J. Scanlon, Mark Simon, Ed Stewart, Bill Welch

Director Lloyd called the meeting to order at 3:10 p.m.

Approval of Minutes of Legislative Committee Meeting of April 13, 2005
The committee (Hershman/Hartnett) unanimously approved the minutes.

Support for AB 948 (Oropeza) Re: Design-Build Authorization
Ed Stewart, Legislative Analyst, said last year the Board supported SB 1130 which allowed transit agencies to use the design-build method for major construction projects. In the case of rail projects specifically, current law provides that the project has to cost more than $50 million before design-build can be used. AB 948 reduces this threshold to $25 million, which allows smaller rail projects to take advantage of the authorization. Although there is no project immediately ready, there is the potential that this would benefit Caltrain and the Dumbarton corridors, and Mr. Stewart said it would be good to support the bill.

The committee (Hershman/Hartnett) unanimously recommended board support of the bill.

Verbal Update on State Legislative Program
Mr. Stewart said the state expects additional revenues of $2 billion. The governor is holding a conference to announce that he is fully funding Proposition 42 in the FY 2006 budget. For SamTrans, this means about $800,000 of additional revenue for operating purposes from the State Transit Assistance program. Caltrain will get roughly the same amount to offset the operating cost of the Caltrain service. This also means that the entire state will have more money to put into infrastructure.

Verbal Update on Federal Legislative Program
Mr. Stewart said the Senate just voted to uphold an increase in funding for the TEA 21 reauthorization bill from $284 billion to $295 billion. The bill will ultimately be sent to a House-Senate Conference. The House would like to maintain the $284 billion level and the president is planning to veto any bill that exceeds $284 billion. The good news is that the Senate has a high number of votes supporting the bill, which may influence some House members to support the additional funding.

Director Lloyd said the present legislation expires again on May 31. Mr. Stewart said there might be a need for another extension.

Adjourned: 3:16 p.m.


SAN MATEO COUNTY TRANSIT DISTRICT
BOARD OF DIRECTORS

Board Members Present: Jerry Hill (Chair), John Barbour, Jim Hartnett, Marc Hershman, Arthur Lloyd, Michael Nevin, Adrienne Tissier

Board Members Absent: Michael Guingona, Shirley Harris

Staff Present: Penny Bertrand, Doug Burton, George Cameron, Joan Cassman, April Chan, Monica Colondres, Gigi Harrington, Chuck Harvey, Aurora Jose, Raymond Lee, Ian McAvoy, David Miller, Michael J. Scanlon, Mark Simon, Ed Stewart, Bill Welch

Chair Jerry Hill called the meeting to order at 3:16 p.m.

CONSENT CALENDAR
Motion
The Board (Hartnett/Lloyd) unanimously approved the following:
  1. Adoption of Minutes of Board of Directors Meeting of April 13, 2005
  2. Acceptance of Statement of Revenues and Expenses, March 2005 and Supplemental Information
  3. Acceptance of Quarterly Investment Report and fixed Market Review and Outlook
PUBLIC COMMENT
Joan Marks asked the Board to think more creatively, more humanely and on a larger scale in acting on the proposed fare increase. She said by raising fares, the poor and the lower class of citizens are directly impacted. They are people who cannot afford a car and who need to go to work. She also said congested roads and increasing fuel costs is the golden moment to increase not fares but the clientele. She suggested no increase in the fares.

REPORT OF THE CHAIR
The board unanimously proclaimed May as Older Americans Month. The certificate was accepted by May Nichols on behalf of the San Mateo County Commission on Aging.

REPORT OF THE GENERAL MANAGER/CEO
  1. Resolution of Appreciation for Aurora V. Jose, Administrative/Board Secretary
    The Board (Nevin/Lloyd) unanimously approved Resolution No. 2005-19 and presented it to Ms. Jose, on the occasion of her retirement.
  2. BART SFO Extension: Agreement Pertaining to FY 2006 Operating Plan
    General Manager/CEO Michael Scanlon said last year, the District and BART entered into an agreement called the 2005 Operating Plan. This agreement expires June 2005. He and BART General Manager Tom Margro, Chair Hill and BART Board Chairman Joel Keller are discussing a number of issues and are working diligently on the 2006 operating plan. Because of the financial difficulties the District is currently in, Mr. Scanlon, in a letter sent to BART General Manager Tom Margro, said the District will keep its contribution in 2006 at below $10 million, cut it in half in 2007 and reduce it to zero thereafter. To be able to keep the contribution below $10 million, Mr. Scanlon suggested ideas that if implemented, would dramatically reduce the operating costs. He discussed these proposals stating how much money could be saved from each item. Mr. Scanlon further said they are working on several smaller issues, such as sharing parking fine revenues and getting advertisers on the system to generate some revenues. Mr. Scanlon said staff is working closely with BART in dealing with issues relative to the SFO Extension operations.

    Chair Hill said there is mutual willingness and cooperation between BART and SamTrans to work together as partners in resolving the fiscal constraints and challenges. They are going to look at the airport issues as partners as well.
Mr. Scanlon further reported:
  1. Both Caltrain and SamTrans will be providing special service for the Bay to Breakers.
  2. Caltrain added two more Baby Bullet trains on May 2.
  3. SamTrans is offering the best bargain for the Summer Youth Pass - $25 worth of passes for unlimited rides for three months.
  4. SamTrans has been given the Diamond Award for 2005 and Resolutions of Appreciation from the Senate and the Assembly for supporting the arts in San Mateo County and replacing recycle works adcards on SamTrans buses. Ms. Penny Bertrand, Sales and Promotions Supervisor, received the certificates on behalf of the District.
  5. SamTrans will be eligible this year to receive reimbursements from the Metropolitan Transportation Commission (MTC) for the cost of fare in offering free rides for five days from 4 a.m. to 9 a.m. on the occasion of the "Spare the Air Day."
  6. Next week, Chuck Harvey, Chief Operating Officer, will conduct his annual base inspections. Mr. Scanlon invited the Board members to join the inspection tour.
COMMUNITY RELATIONS COMMITTEE
Subjects Discussed
Director Tissier said the committee heard the following reports:
  1. PCC, AL-Com and ATAC Reports
  2. Citizens Advisory Committee Liaison Report
  3. SamTrans Performance Report
  4. Multimodal Ridership Report, March 2005
FINANCE COMMITTEE
Resolutions
 The Board (Hershman/Lloyd) unanimously approved the following:
  1. Resolution No. 2005-20: Authorization to File Application with the Metropolitan Transportation Commission (MTC) to Program Federal Transit Administration (FTA) Section 5307 Funds for SamTrans Capital Projects
  2. Resolution No. 2005-21: Authorization to Execute a Funding Agreement with MTC for FY 2006 Transportation Funds for Clean Air (TFCA) in the Amount of $150,000 to Underwrite Portion of the "Purchase and Install Enhanced Bus Catalysts" Project
  3. Resolution No. 2005-22: Approval of Proposed Disadvantaged Business Enterprise (DBE) Overall Annual Goal for FY 2006
  4. Resolution No. 2005-23: Authorization for the District to Pick Up Resolution Pre-Tax Payroll deductions for Service Credit Purchases of Employees (Contribution Code 14)
  5. Resolution No. 2005-24: Approval of Award of Contract to Cities Group for Providing Worker's Compensation Program and Claims Administration Services for a Total Estimated Cost of $773,000 for a Five-Year Term
  6. Resolution No. 2005-25: Approval of Award of Contract to Technology Insurance Services, Inc. for Providing Insurance Broker Services for a Total Estimated Cost of $227,140 for a Five-Year Term
Motion
  1. Authorization to Set a Public Hearing on June 1, 2005 to Solicit Public Input on the Proposed Fare Adjustments to Take Effect September 1, 2005.
    The Board (Hershman/Tissier) unanimously authorized setting the public hearing as proposed.
Subjects Discussed
Director Hershman reported the committee discussed the following
  1. Proposed FY 2006 Operating Budget
  2. Proposed FY 2006 Capital Budget
LEGISLATIVE COMMITTEE
Motion
Support for AB 948 (Oropeza) Re: Design-Build Authorization: The Board (Lloyd/Hartnett) unanimously supported the bill.

Subjects Discussed
Director Lloyd reported that Mr. Ed Stewart brought the board up to date on both the state and federal legislative programs. He said the District may get some money from Proposition 42 and that the TEA-21 has gone through the Senate and now on its way to the Conference Committee.

PLANNING AND DEVELOPMENT COMMITTEE: No meeting.

WRITTEN COMMUNICATIONS TO THE BOARD OF DIRECTORS: Already distributed.
Closed Session: Con
BOARD MEMBER REQUESTS: None.

DATE AND TIME OF NEXT MEETING: Special meeting on June 1, 2005 at 10 a.m., followed by regular meeting on June 8,2005 at 2 p.m., SamTrans Administrative Office, 1250 San Carlos Avenue, San Carlos, California

GENERAL COUNSEL PROPOSAL
Legal Counsel David Miller said the purpose of the closed session is to hear a brief report from Legal Counsel Doug Burton and Monica Colondres, Director of Human Resources on the status and progress of the labor negotiations with ATU Local 1574.

THE BOARD ADJOURNED INTO CLOSED SESSION AT 3:51 A.M. AND RECONVENED TO OPEN SESSION AT 3:59 P.M.

Mr. Miller said the Board of Directors met in closed session as permitted by the Brown Act to hear a report from Mr. Doug Burton on the pending labor negotiations. Further reports will be rendered to the Board at the next meeting.

ADJOURNMENT: 4 p.m.



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