March 24, 2023 · Board of Directors
All Consent Calendar items are listed at the end of the agenda.
7.A March Legislative Update Staff provides a regular update on current legislative affairs. Receive and file. 7.B Capital Program Status Report Staff is providing an update on the progress of the Authority’s Capital Program, including the Southern California Optimized Rail Expansion (SCORE) Program and the State of Good Repair Program. Receive and file. 7.C Evaluation of Monthly Pass Discount In October, November, and December 2022, the Authority conducted a fare pilot with a 30% discount on Monthly Passes. This item presents the results of an evaluation of customer response to the fare pilot. Findings indicate a 37% increase in pass sales with 10% of those sales coming from new customers. Receive and file.
Authority Update
Board of Directors Meeting March 24, 2023 3
A. CONFERENCE WITH LABOR NEGOTIATOR – Pursuant to Government Code Section 54957.6 Agency Designated Representatives: Ilyssa DeCasperis and Irma Rodriguez Moisa Employee Organization: Amalgamated Transit Union Local 1277 B. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION – Pursuant to Government Code Section 54956.9(d)(1) – Metrolink Train Accident Cases, Los Angeles County Superior Court – Judicial Council Coordination Proceeding No. 4889, lead Los Angeles County Case No. BC607964 (Bruce Shelburne and Kathy Shelburne, et al. v. Hyundai Rotem USA Corp, SCRRA et al.) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION – Pursuant to Government Code Section 54956.9(d)(1) – SCRRA v. Hyundai Rotem Company, et al., United States District Court for the Central District of California, Case No. 2:16- cv-08042- JAK-JEM CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION – Pursuant to Government Code Section 54956.9(d)(1) – Arch Specialty Ins. Co. v. Hyundai Rotem USA Corp., SCRRA, et al., United States District Court for the Central District of California, Case No. 2:20-cv-10662-JAK-AFM C. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION – Pursuant to Government Code Section 54956.9(d)(1) – Karl Tolp v. Metrolink, Los Angeles Superior Court, case no. 20STCV07549. D. PUBLIC EMPLOYEE PERFORMANCE EVALUATION – Pursuant to Government Code Section 54957(b)(1) Title: Chief Executive Officer CONFERENCE WITH LABOR NEGOTIATOR – Pursuant to Government Code Section 54957.6 Agency Designated Representative: Chair Larry McCallon Unrepresented Employee: Chief Executive Officer
12.A Approval of Meeting Minutes - February 24, 2023 Regular Board Meeting It is recommended that the Board approve the Minutes of the February 24, 2023 Regular Board Meeting. 12.B Financial Results for the Seven Months Ending January 2023 - Ridership and Revenue Recovery and Operating Statements In 2020, in response to the effects of the COVID-19 pandemic and the related decline in Metrolink ridership, the Authority developed a forecast for ridership and associated revenue recovery for FY21. This forecast has subsequently Board of Directors Meeting March 24, 2023 4 been updated, informed by economic data gathered from federal, state and private sources, with the most recent update produced in November 2021. This November 2021 update was the forecast used to produce the FY23 Budget. Monthly reports to the Board will continue for as long as the effects of the pandemic and post pandemic issues significantly impact the financial position of the Authority. Receive and file. 12.C Quarterly Compensation Report - 2nd Quarter FY23 - October 1, 2022 through December 31, 2022 In compliance with HR Policy No. 2.1, Wage and Salary Administration – Salary Program Administration, staff is required to make quarterly and annual reports to the Board on compensation matters. Receive and file. 12.D Redlands Passenger Rail Project - Amendment No. 6 to Cooperative Agreement No. 17-1001587 with San Bernardino County Transportation Authority The existing Cooperative Agreement and subsequent Amendments between the Authority and SBCTA provide for Authority support to the design, Positive Train Control (PTC) development, utility work, capital construction and pre-revenue service phases of the Redlands Passenger Rail Project. Approval is now needed to execute Amendment No. 6 to the Agreement to provide for further Authority support, with associated funding, for final project close-out services to achieve project completion. CONTRACTS, OPERATIONS, MAINTENANCE, AND SAFETY COMMITTEE RECOMMENDED (5-0) the Board authorize the Chief Executive Officer to negotiate and execute Amendment No. 6 to Cooperative Agreement No. 17- 1001587 between San Bernardino County Transportation Authority (SBCTA) and the Authority that will increase the funding for capital construction support services for the Redlands Passenger Rail Project (RPRP) by $814,129, from an existing $17,293,551.40 to a new not-to-exceed total of $18,107,680.40. There is no budget impact since this is a Third Party funded Agreement. 12.E Design Services Agreement with City of Simi Valley for the Sequoia Avenue Grade Crossing Improvements Project Approval is needed to negotiate and execute a Design Services Agreement with the City of Simi Valley for funds to be allocated to the Authority to advance the Design (Plans, Specifications, & Estimates - PS&E) phase of the Sequoia Avenue Grade Crossing Improvements project. Board of Directors Meeting March 24, 2023 5 CONTRACTS, OPERATIONS, MAINTENANCE, AND SAFETY COMMITTEE RECOMMENDED (5-0) the Board authorize the Chief Executive Officer to negotiate and execute Design Services Agreement between the City of Simi Valley and the Authority for a not-to-exceed amount of $1,400,000 for the Authority to lead the Design (PS&E) phase of the Sequoia Avenue Grade Crossing Improvements project. All funding for this project is provided by City of Simi Valley funds. 12.F System Safety and Compliance - Quarterly Update Staff is providing a quarterly update on the Authority's safety and compliance status and activities, including strike data, reportable injuries, rule violations, compliance audits, regulatory inspections, and public outreach. This update covers the 4th quarter of Calendar Year (CY) 2022 and a summation of CY 2022. Receive and file.
Board of Directors Meeting March 24, 2023 6 ITEM 7.A metrolinktrains.com/meeting ITEM ID: 2023-148-0 TRANSMITTAL DATE: March 17, 2023 MEETING DATE: March 24, 2023 TO: Board of Directors FROM: Paul Hubler, Chief Strategy Officer SUBJECT: March Legislative Update Issue Staff provides a regular update on current legislative affairs. Recommendation Receive and file. Strategic Commitment This report aligns with the Strategic Business Plan commitments of: Connecting and Leveraging Partnerships: We will forge new and enhanced relationships with our public and private partners to integrate and coordinate connecting services, providing residents throughout Southern California with better, seamless, sustainable alternatives to driving. This commitment is met by sharing news, information and the Authority’s legislative priorities with elected officials. Advancing Key Regional Goals: We will grow the role of regional rail in addressing climate change, air quality, and other pressing issues by advancing toward zero emissions, making rail a compelling alternative to single-occupant automobiles and advancing equity-focused opportunities for all communities throughout Southern California. This commitment is met by encouraging federal, state and local support for Authority priorities. 7 Background Staff continues to engage with local, state, and federal government and community relations stakeholders relating to Metrolink service and relevant policy items. Discussion Local Metrolink Community Relations staff are working on several community outreach efforts, including: Next Door Community Survey On February 8, 2023, Metrolink posted a community survey available to users of the Next Door community web portal in our region. The post garnered approximately 60,000 views with 182 clicks to view the survey and 118 responses collected. The survey asked a variety of community-based questions intended to determine how Metrolink is viewed by community members who may or may not be Metrolink riders. Questions including familiarity with the Metrolink system, names of community groups, familiarity with programs and Metrolink usage were among the questions asked. The survey closed on February 28, 2023. The survey results included requests for more mid-day service, more Metrolink stations, better access to and from stations, more late-night trains and better access to work locations. Overall, respondents felt that Metrolink was a good neighbor and provided a safe transit option but needed to expand the service to provide better access to community members. Some concerns regarding fare prices and horn noise were mentioned. There did seem to be some continued confusion regarding Metro and Metrolink and what services were provided by each agency due to the similarity of agency names and as providers of rail transportation. Low-Income Fare Discount Program Outreach Metrolink received a grant to provide fare discounts to qualified, low-income community members. Electronic Benefits Transfer (EBT) cardholders may use the card at Metrolink ticket machines to purchase tickets at 50% off. The Community Relations team is working in conjunction with counties, cities and elected officials to ensure that likely qualifying participants learn about the program. Notices will also be distributed door-to-door at four public housing projects near Metrolink stations. The Low-Income Fare Discount Program will remain in effect until August 2023 or until grant funds are exhausted. Online School Safety Program Working with the Safety Department and using Operation Lifesaver videos and instructional material, the Community Relations team has created an on-line safety program distributed to more than 170 school district superintendents in the Metrolink region. The goal is to provide safety instruction to as many students in schools near railroads as possible. The program can be administered and led by teachers or may also be accessed directly by students. Metrolink Safety staff will also continue to provide in-person presentations requested by local schools. By-Line Presentation The Metrolink Community Relations Team has developed a presentation that will be shared 8 with cities along Metrolink service lines. As there are a number of issues that are common to each city along the line, the presentation is an opportunity to hear these issues and provide a forum for cities to work with Metrolink and neighboring cities to address common issues and to share local perspectives and concerns. The first meeting along the San Bernardino line is tentatively scheduled for March 22, 2023 and will discuss existing projects, planned projects, quiet zones, planning studies, and State of Good Repair and Maintenance of Way efforts. State The State Legislature is continuing its consideration of the 2023-24 California budget priorities. The Assembly Budget Committee held a budget oversight hearing on February 8 with an update from the Legislative Analyst's Office (LAO) on the Governor's budget. The LAO identified an $18 billion deficit driven by lower revenue estimates than the adopted June 2022 budget. The Governor has proposed to address the budget shortfall through spending reductions, delays and triggers. Of these spending solutions, there is a $2 billion trigger reduction to the Transit and Intercity Rail Capital Program (TIRCP) in the 2023-24 and 2024- 25 fiscal years if budget conditions do not improve. The Senate Budget and Fiscal Review Committee held a February 6th hearing on the state's housing and homelessness programs. Of note, Senator Maria Elena Durazo (D-Los Angeles) cited the need for transit operators to access state funding identified for homeless services. Staff have joined transit advocates in encouraging the Legislature to maintain transit funding to at least the levels enacted in the 2022-23 state budget, which includes restoring reductions to TIRCP funding. The Legislature and transit stakeholders, in collaboration with the California Transit Association (CTA), continue to discuss proposed new transit operations funding. These discussions are occurring in an environment with lower-than-expected state revenues. Staff are collaborating with Member Agencies and the CTA in advocating for immediate and ongoing funding while supporting consideration of possible long-term operations funding reforms. The California Air Resources Board held a public workgroup meeting on February 8 to discuss incentive funding included in the Fiscal Year 2021-22 and 2022-23 Advanced Technology Demonstration and Pilot Projects Program. Staff continue to monitor Air Resources Board workshops and announcements to advocate for funding to be available to passenger rail operators. Additionally, the Board held its regular monthly meeting on February 23-24. The Board is expected to hold its second Board Hearing to vote on the proposed In-Use Locomotive Regulation in Spring 2023. The regulation is expected to include three different compliance pathways for passenger and freight locomotive operators. Staff continue to coordinate with the Member Agencies, CTA, and peer passenger rail operators to ensure shared emissions-reductions goals are achieved without unintended financial harm to agencies. Federal President Biden addressed Congress during the State of the Union on February 7. The President used the opportunity to highlight the Bipartisan Infrastructure Law (BIL) and bipartisan investments. These comments are notable given the divided Congress and need to address the debt limit. Additionally, the President noted his support for strengthening Buy America standards for federal infrastructure. Following the State of the Union address the Office of Management and Budget (OMB) is proposing to revise guidance to support 9 implementation of the Build America, Buy America Act provisions of the Infrastructure Investment and Jobs Act. Comments are due March 13 and the American Public Transportation Association (APTA) is coordinating a response on behalf of the industry. Staff will monitor the proposed rule and guidance for any impacts to the Authority. The Congressional Budget Office (CBO) released an updated report on February 15 relating to the federal debt and statutory limit. Of note, the report reiterates that the $31.4 trillion debt limit was reached on January 19. The current debt issuance suspension period is expected to be exhausted between July and September 2023 during the fourth quarter of the current federal fiscal year. If the debt limit is not raised or further suspended, the Treasury will not be authorized to issue new debt, leading to delayed payments for some government activities or a default on the government's debt obligations. Additionally, the CBO estimates that the Federal Reserve's target of reducing inflation to 2 percent will not be met until 2026 or 2027. The Senate Appropriations Committee Chair Patty Murray (D-Wash.) and Ranking Member Susan Collins (R-Maine) released the full roster of Appropriations Subcommittee leadership. Of note, the Transportation, Housing and Urban Development (THUD) Subcommittee will be led by Chair Brian Schatz (D-Hawaii) and Ranking Member Cindy Hyde-Smith (R-Miss.). House of Representatives Republicans released additional information on requests for Congressionally directed spending, or earmarks. New rules are expected to limit requests to those with a federal nexus. Staff are reviewing for opportunities to seek resources for regional rail projects with support from Congressional offices. The House of Representatives is expected to consider all 12 appropriations bills individually. Senate leaders have voiced their support for retaining earmarks without process changes. Metrolink is submitting to USDOT a Rebuilding America's Infrastructure with Sustainability and Equity (RAISE) grant application seeking $45 million to match the $51.7 million in state Carl Moyer Program funds already awarded to Metrolink to procure eight additional Tier 4 locomotives to replace Tier 2 locomotives. Metrolink submitted two prior RAISE applications that were recommended but not awarded due to an over-subscribed grant program. Metrolink staff note that return of the state funds may be required unless matching funds are secured. Rep. Julia Brownley (D-Oxnard) is leading a congressional delegation letter in support of the application. Support letters are also requested of both California US Senators. The grant application was submitted on February 28 and award announcements are expected in June. The new locomotives will increase from 40 to 48 the number of Tier 4 locomotives in Metrolink's fleet of 55 locomotives. Tier 4s are the cleanest commercially available locomotives on the market, and when powered by renewable (plant and animal based) fuel, make Metrolink one of the cleanest diesel-operated passenger railroads in the country. Next Steps Staff continues to engage with local, state, and federal government and community relations stakeholders relating to Metrolink service and relevant policy items. 10 Prepared by: Jeffrey Dunn, Director, Government & Community Relations Alex Davis, Senior Manager, Government Relations Sylvia Novoa, Manager, Public Affairs Julie Nieto, Management Analyst II Approved by: Paul Hubler, Chief Strategy Officer Attachment(s) Appendix A - March 2023 Bill Matrix 11 Appendix A: Legislative Matrix Bill Number Bill Status Action Federal State Intent Bills Assembly Bill 6 (Friedman): This bill would May be heard in Monitor state the intent of the Legislature to enact Committee after legislation that would require regional January 5 transportation agencies to prioritize and fund transportation projects, including those funded by a local sales tax measure, that significantly contribute towards the goals outlined in a region’s sustainable communities strategy and the state’s climate goals. Assembly Bill 7 (Friedman): This bill would May be heard in Monitor state the intent of the Legislature to enact Committee after legislation that would eliminate single January 5 occupancy vehicle freeway capacity projects, and allow capacity projects only for bus rapid transit, rail, active transportation purposes, projects that significantly add safety, and projects that significantly reduce congestion, without interfering with existing maintenance and rehabilitation needs. Senate Bill 523 (Laird): A State Transit May be heard in Monitor Assistance (STA) Intent Bill, Details To Be Committee after Provided March 17 Constitutional Amendments Assembly Constitutional Amendment 1 May be heard in Monitor (Aguilar-Curry): Lowers the voting Committee after threshold for local affordable housing and January 5 public infrastructure projects from 2/3 of voters to 55%. Climate Related Bills Assembly Bill 9 (Muratsuchi) and Senate AB 9 is referred to Monitor Bill 12 (Stern): These bills would require the Committee on CARB to ensure that statewide Natural Resources greenhouse gas emissions are reduced to Committee. at least 55% below, raised from 40%, the SB 12 is referred to 1990 level by no later than December 31, Committee on
Quality. 12 Senate Bill 2 (Skinner): Establishes a to Referred to Monitor be determined maximum gross gasoline Committee on refining margin. Rules Project Delivery and Utilities Related Bills Assembly Bill 400 (Rubio): Permanently May be heard in Monitor extends the existing authority for local Committee after agencies to utilize Design-Build March 5 procurement processes. Assembly Bill 463 (Hart): Requires the May be heard in Monitor Public Utilities Commission (CPUC) to Committee after prioritize transit vehicle charging March 9 infrastructure as a priority user for service restoration. Co-Sponsored by the California Transit Association (CTA) Assembly Bill 557 (Hart): Extends Bill introduced to Monitor indefinitely previous authorization for a print local agency to use teleconferencing without complying with specific Brown Act requirements during a declared state of emergency. Extends the period of time for a legislative body to make the described finding to not later than 45 days and every 45 days thereafter. Senate Bill 617 (Newman): Expands Bill introduced to Monitor Progressive Design Build Authority to print regional transportation agencies for non- state highway roadways. Senate Bill 706 (Caballero): Removes the Bill introduced to Monitor 15-project maximum and restriction to print water-related projects for cities, counties, or special districts to use Progressive Design Build Authority. Transit Bills Assembly Bill 610 (Holden): Creates the May be heard in Monitor Youth Transit Pass Pilot Program for the Committee after purpose of awarding grants to transit March 12 agencies for the cost of creating, designing, developing, advertising, distributing, and implementing free youth transit passes to persons attending a California Community College, State University and the University of California. Assembly Bill 761 (Friedman/Gonzalez): May be heard in Monitor Establishes the Transit Transformation Committee after Task Force, which would report to the March 16 Legislature how to grow public transit 13 ridership and improve the public transit experience, among other recommendations. Assembly Bill 819 (Bryan): Reduces May be heard in Monitor existing penalties from a misdemeanor Committee after and fine to only a maximum $400 fine for March 16 fare evasion and unauthorized use of discount tickets. 14 ITEM 7.B metrolinktrains.com/meeting ITEM ID: 2023-149-0 TRANSMITTAL DATE: March 17, 2023 MEETING DATE: March 24, 2023 TO: Board of Directors FROM: Justin Fornelli, Chief, Program Delivery SUBJECT: Capital Program Status Report Issue Staff is providing an update on the progress of the Authority’s Capital Program, including the Southern California Optimized Rail Expansion (SCORE) Program and the State of Good Repair Program. Recommendation Receive and file. Strategic Commitment This report aligns with the Strategic Business Plan commitment of: Modernizing Business Practices: We will improve our operational efficiency through transparency, objective metrics and streamlined governance, reducing over-reliance on subsidy while bringing our system into a state of good repair and investing in the development of our employees. The report provides our Board with timely updates on the progress of the Capital Program. The new capital program, including SCORE, adds to the safety, expansion, and growth of the system while the State of Good Repair Program ensures the safety and reliability of the Authority’s existing assets. Background The Capital Program consists of two major components: New Capital Projects and State of Good Repair (SGR) Programs. The Authority’s Capital Program, outside of SCORE, is budgeted annually, and projects are typically delivered over multiple years. Funding for capital projects is provided by Member Agencies through the annual budget process. The Authority also applies for local, state, and federal funds for additional SGR and New Capital Projects. 15 New Capital Projects expand railroad infrastructure and include items such as new sidings, safety enhancements to grade crossings, modernizing signal and communication systems, and new rolling stock. The SGR Program addresses existing capital assets to keep them in a state of good repair through activities such as: Rehabilitation of tunnels, bridges, and culverts Replacement of worn ties and rail Replacement of worn or outdated signal system components Programmed rehabilitation of rolling stock components such as car door operators and heating/ventilation/air conditioning (HVAC), and mid-life overhaul of rail cars and locomotives All project progress is tracked through the Authority’s project reporting system, which is maintained by Program Management Oversight (PMO). Regular meetings are held with project managers to review the progress of active projects. Staff also prepare quarterly project expenditure forecasts to estimate cash flow requirements. As part of the PMO’s effort to improve its reporting and tracking capabilities, key performance indicators (KPIs) have been developed and are included in this report. This item has been updated to reflect financial expenditures through December 31, 2022, while project schedule and status are up to date as of February 6, 2023. Discussion Key Activities Since the last Capital Program Status Update, multiple key accomplishments were achieved, as follows: SCORE Program Simi Valley, El Monte, and BNSF Fullerton-Esp. – Received award of $107M TIRCP Supplemental 2023 Cycle 6. Burbank Jct. Speed Improvement – Completed signal work and cutover. Antelope Valley Line Capacity & Service Improvement Projects – Finalized evaluations of proposals for final design. Cogswell Road Crossing Improvements – Completed public outreach and filed CEQA Notice of Exemption. Atwood-Esperanza 3rd Track Project – Executed work order with BNSF for final design. South Perris Station & Layover Facility – Executed funding agreement with RCTC. Link US Phase A – Received and commented on independent value engineering report. 16 Bombardier Car Rebuild Program - Eight (8) cars were conditionally accepted and are in service. Four (4) additional cars to be conditionally accepted by March 2023. Twelve (12) cars are in the Milwaukee factory undergoing rebuild. Six (6) cars to be delivered to LA by March 2023. FY23 Capital Budget funding of $30M will be used to exercise an option order with Talgo-SYSTRA to rehabilitate another eighteen (18) cars. LA Union Station Rail Yard Rehabilitation & Modernization (RYRM) Project – Track work on switches and turnouts for Control Point (CP) Mission began in February 2023. Track Contractor finishing punch list at CP Terminal. Signal contractor continues to provide support to the track contractor as well as installing conduits and boxes to new CP house locations. Procurement of the switches, signal houses and cable are completed. Pending delivery of the last remaining special track materials and track turnouts for CP Mission. F125 – Tier 4 Locomotive Procurement Project – All forty (40) units have received Final Acceptance. Submittals of Operators Manual, Parts Catalog, and Service Manual are completed, closed, and paid. Provisions of Amendment are being implemented. Locomotive warranty will expire in August 2024. Anaheim Canyon Station Improvements Project – New platform opened in January